CANADIAN HUMAN RESOURCE MANAGEMENT

Employee Relations

© 2019 McGraw-Hill Ryerson Education Limited

11
Chapter
Eleven

Krista Uggerslev, NAIT

Schwind 12th Edition 11-1

CANADIAN HUMAN RESOURCE MANAGEMENT

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

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Strategic Importance of
Employee Relations Practices

• Productivity is significantly
Improve
impacted by ability and
Productivity
attitude

Implementation • Goals and strategies are

of communicated
Organizational • Employees provide
Strategies commitment

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Strategic Importance of
Employee Relations Practices
• Reduced absenteeism and
Reduce
turnover
Employment • Provides recruitment
Costs
advantage
• Help employees achieve
Help Employees
personal goals
Grow and • Improve morale, loyalty &
Develop
productivity

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Five Key Dimensions of Employee
Relations

Schwind 12th Edition, Figure 11-1

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LO1
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 surveys
management

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LO2
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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LO3
Employee Discipline: Preventive
• 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

• Discipline that 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

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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

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Positive Discipline
• Takes a problem-solving approach
• Employee accepts that a problem exists and
employee takes responsibility
• Focus on the specific problems
• Document suggested changes and employee’s
commitments
• Follow-up to ensure employee is keeping
commitments

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Dismissal
• The ultimate disciplinary action is dismissal
• Wrongful Dismissal
– 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

• 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
• Four classes of misconduct identified in the case law
include:
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
– Recent decision in Honda Canada v. Keays, 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 & 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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LO4
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
• 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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CANADIAN HUMAN RESOURCE MANAGEMENT
LO5 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
• Organizational Downsizing
– Reducing employment to improve organizational
performance

• Three types of downsizing

strategies:
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

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 11-29

CANADIAN HUMAN RESOURCE MANAGEMENT

11 Managing Employee Relations

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.

© 2019 McGraw-Hill Ryerson Education Limited Schwind 12th Edition 11-30