Managing Employee

RelationsChapter 11Krista Uggerslev,

NAIT

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 Learning Objectives
1. Discuss the importance of downward and upward
communication in organizational settings.
2. Define employee counselling and the major types of
counselling.
3. Describe how progressive discipline and wrongful dismissal
work.
4. Explain the different techniques available to improve quality
of work life.
5. Outline the major issues relating to downsizing the
workforce and their implications for strategic human
resource management.

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 Employee Relations
The state of employee relations in an organization is
determined by how human resource planning,
placement, training and development, evaluation,
and compensation is handled

Human resource initiatives – such as policies on

workplace and sexual harassment, conflict
resolution procedures, and employee involvement
programs – play an important role in enhancing
employee relations

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Strategic Importance of Employee
Relations Practices

Improve Productivity is significantly

Productivity impacted by ability and
attitude

Implementation Goals and strategies are

of Organizational communicated
Strategies Employees provide
commitment

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Strategic Importance of Employee
Relations Practices Cont’d

Reduce Reduced absenteeism and

Employment turnover
Costs Provides recruitment
advantage
Help Employees Help employees achieve
Grow and personal goals
Develop Improve morale, loyalty &
productivity

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 Five Key Dimensions of Employee
Relations

Schwind 13th Edition, Figure 11-1

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 Effective Employee Communication

Downward Upward
In-House publications Grapevine
Prerecorded messages Electronic communication
Electronic Complaint procedures
communication Manager-employee
Social media / Mobile meetings
Devices Suggestion systems
Information sharing and Employee attitude/opinion
open-book management surveys

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 Employee Counselling
Discussion of a problem with an employee to
resolve the issue and/or help the employee cope
Employee Assistance Program (EAP)
.

Comprehensive company program that seek to help

employees to overcome personal and work-related
problems
Online communications are increasingly being used to
supplement EAP structures

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 Employee Discipline: Preventive
Employee discipline is management action taken to
encourage compliance with standards
Preventive Discipline
.

Action taken prior to any infraction to encourage

employees to follow the rules
HR is responsible for developing programs and
communication

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 Employee Discipline: Corrective
Corrective Discipline follows a rule infraction
(e.g., a warning, suspension without pay)
The objectives of disciplinary action are:
.

To reform the offender

To deter others from similar actions
To maintain consistent, effective group standards

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 Restrictions on Discipline
May be restricted by union contracts and
government legislation
Due process to ensure established rules and
procedures are followed
A useful guide for corrective discipline is the hot-
stove rule:
.

With warning
Immediate
Consistent
Impersonal

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 Progressive Discipline
Stronger penalties for repeated offences
.

Verbal reprimand by supervisor

Written reprimand; with a record in file
1-3 day suspension
Suspension for 1 week+
Discharge for cause
It is essential that employers document
discipline efforts

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 Positive Discipline
Takes a problem-solving approach
Employee accepts that a problem exists and takes
responsibility
4 suggestions for positive disciplinary interviews:
Focus on the conversation, not the disciplinary action
Change the name of disciplinary steps (from reprimands
and warnings to notice and conversation)
Provide employees with the opportunity to clear their
record
Avoid unpaid suspensions

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 Dismissal
The ultimate disciplinary action is dismissal
Wrongful Dismissal
.

The termination of an employee without just cause or

without giving the employee reasonable notice or pay in
lieu of notice
Non-union employer who does not have just cause for
dismissing an employee may be sued for wrongful
dismissal
Determining Just Cause for Dismissal
.

Any act by an employee that could have serious negative

effects on the organization
Employer is responsible for proving just cause
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 Incompetent Work Performance
Incompetent work performance is one justification for
just cause dismissal
Requirements in dismissing an incompetent employee
include:
.

Providing reasonable, objective standards of

performance
Showing that employee failed to meet standards
Establishing that employee was given a clear warning
including warning that dismissal could result if standards
were not met

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 Employee Misconduct
Employee misconduct can also potentially lead to just
cause dismissal
Four classes of misconduct identified in the case law
including:
1.

1. Unfaithful service to the employer

2. Misconduct of a general nature
3. Theft, fraud, or dishonesty
4. Willful disobedience of a reasonable and lawful order.
Business or economic reasons are not just cause for
dismissal because such factors are not related to the
employee’s behaviour

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 Constructive Dismissal
A major change in the employment terms that results
in an employee resigning may be considered
constructive dismissal
Examples:
.

Significant change in job function

Demotion
Demand for an employee’s resignation
Forced transfer

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 Reasonable Notice
When an employer does not have just cause for
dismissal, “reasonable notice” or compensation in lieu
of notice is required
Considerations include:
.

Employee’s age
Length of service
Salary
Occupational status
Labour market conditions

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 The Wallace Effect
Decision of the Supreme Court in Wallace v. United
Grain Growers
.

Resulted in the awarding of extended periods of notice in

a number of wrongful dismissal cases where the
employer acted in a callous manner
In the Honda Canada v. Keays decision, addressed bad-
faith damages and restricted use of punitive damages

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 Managing the Dismissal
Guidelines to follow in dismissing an employee
.

Prepare for the interview and conduct a rehearsal

Consider the employee’s perspective
Get to the point
Select the time and a private place
Have necessary information ready
Notify others and ensure duties are covered
May require special security measures

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 Employee Rights: Right to Privacy
Collect only job-related information
PIPEDA requirements
Many organizations monitor their employees’
communications and activities on the job

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 Employee Rights: Right to Fair
Treatment
Employer cannot consider age, race, gender etc.
and has an obligation to make reasonable
accommodation
Right to work in a safe and harassment-free
environment

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 Cannabis Legalization
Employer concerns include:
.

Lack of product knowledge

Unavailability of an accurate and reliable test of
impairment
Use in safety-sensitive positions
Will be important to distinguish between
recreational and medical use
.

Accommodation
Risk of blanket zero tolerance policy
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 Employee Involvement
Self-Directed Work Teams
.

Teams of workers who make decisions

traditionally handled by a supervisor
High-Involvement Work Practices
.

Set/bundle of human resource practices aimed

at increasing employee/employer performance

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 Employee Involvement Cont’d
Employee Self-Service - aimed at reducing
administrative work
.

Productivity Applications
Management of personal data, retirement plans,
and health and benefits management
Strategic Applications
Online recruitment and skills management
applications

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 Job Security, Downsizing, and
Employee Retention
No-Layoff Policies
.

Contrary to the downsizing trend of the 1990s,

some organizations are developing no-layoff
policies
Employees who have job security are more
receptive to change and more likely to be
innovative

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 Job Security, Downsizing, and
Employee Retention Cont’d
Organizational Downsizing
.

Reducing employment to improve organizational

performance

Three types of downsizing strategies:

1.

1. Workforce Reduction
2. Work Redesign
3. Systematic Change

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 Artificial Intelligence and Job Loss
Advances in AI, machine learning, and
computerization are radically changing the
nature of work
High risk of job redundancy:
.

Retail salespeople, admin assistants, food

counter attendants, cashiers, truck drivers
Low risk of job redundancy:
.

Management, teaching, science, technology,

engineering, math
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 Retaining Top Performers
Develop a planned approach to employee retention
Become an employer of choice
Communicate vision and values clearly, frequently, and
consistently
Reward managers for keeping good people
Use exit interviews to obtain information

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 Managing Employee Relations
11 Summary
After mastering this chapter content, you should be able to:
1. Discuss the importance of downward and upward communication
in organizational settings.
2. Define employee counselling and the major types of counselling.
3. Describe how progressive discipline and wrongful dismissal work.
4. Explain the different techniques available to improve quality of
work life.
5. Outline the major issues relating to downsizing the workforce and
their implications for strategic human resource management.

© 2022 McGraw-Hill Education Ltd.