Chapter 12

Employee Relations and

Employee Discipline
 The Importance of Labor
Relations
Employee relation is characterized by some as union avoidance strategy. The objective is to
provide an atmosphere in which all employees can perform their jobs to the best of their
abilities and creatively contribute to the organization.
Employee relation activities affect efficiency where potential reasons for performance
problems are confronted and help is offered to remove these problems.
An employee’s attitude toward work is a crucial factor in productivity and performance
where discipline plays an important part. Discipline has many definitions and most people
equate with punishment. However discipline is not synonymous with punishment.
Employee discipline is an employer’s actions against an employee for infraction of company
policy or rules. An employee may also be disciplined for misconduct that adversely affects
efficiency of the organization.
Conduct problems typically stem from employees who fail to comply with
the written and unwritten rules of the workplace such as coming to work
on time, obeying orders, protecting the company property, and generally
supporting and not interfering with the efficiency of the company.
Employees may also exhibit problems with their performance that may
stem from the lack of knowledge, skill, or ability (KSA) to successfully
perform the duties of their position.
Disciplinary action is the most appropriate avenue in which to
address misconduct directly related to the performance of assigned duties.
The overall objective of disciplinary action is to remedy a problem and to
help employees achieve success in their work. This is also the area of
human resource management which refers to important action taken to
enforce organizational standards.
If an employee demonstrated that he/she has the KSA’s necessary to
perform the full range of duties of the job but commits an act of
negligence, carelessness, or disregard of rules, counseling or discipline is
warranted.
The goal of discipline is to correct misconduct and modify
unacceptable behavior, rather than to punish an employee.
Discipline is imposed, should be progressive, beginning
with the bare minimum discipline necessary to correct the
offense. In addition, penalties should be reasonably
consistent with those imposed on other employees for
similar offenses.
 Prevention of Employee
Misconduct
Disciplinary is something that can only be imposed after an act of
misconduct has already occurred, but managers and supervisors can use
strategies to prevent misconduct before it occurs. When an act of employee
misconduct does occur, supervisors should know how to deal with the
situation effectively. Certain actions by supervisor can serve to prevent
employee misconduct from ever occurring. Managers may help to prevent
the necessity for disciplinary action by recognizing fundamental worth and
dignity of the individual employee and by communicating their belief that
all employees should strive for and reach their highest potential. Some
examples of ways in which supervisors may be able to prevent employee
problems include:
1. Setting an example by their own conduct; maintaining high
professional and ethical standards as leader of the organization;
2. Providing a high-quality work environment that is conducive to
innovation and increased productivity;
3. Establishing and communicating clear guidelines concerning
their expectations for the operations of their office;
4. Establishing objective, understandable, obtainable, and
measurable performance standards and communicating them
clearly to employees;
5. Monitoring performance and giving frequent feedback;
6. Holding employees accountable for result and recognizing and
rewarding good performance;
7. Providing opportunities for individual growth and development
through training and seminars.
Categories of Difficult/Problem
Employees
1. Ineffective employer/ with unsatisfactory performance
Employees whose performance is due to factors directly relayed to
work are theoretically the easiest to work with and to adjust. Ineffective
performance may be result of skill, job, or motivational climate factors. Each
of these factors or causes ought to be carefully assessed.
2. Rule violators
Some companies have general rules that are informally
communicated to employees while others have specific rules that prohibit
such things as possession of deadly weapons, use of alcohol or narcotics,
use of abusive or threatening language, insubordination, and sleeping on
the job. Nonunionized companies are free to make and enforce whatever
rules they want as long as these rules are consistent with other laws.
3. Illegal or dishonest acts
A serious disciplinary problem for all organizations concerns
any form or illegal or dishonest behavior such as theft,
embezzlement, misuse of company facilities or property, or
falsifying records. Even if an illegal act is not prosecuted, the
employee committing the act is usually discharged unless a
company does not have sufficient evidence.
4. With personal problems
Employees are normally expected to handle personal
problems on their own without letting them interfere with work
performance. Temporary difficulties due to family problems are
common. Falling in love, getting married, having children, and
getting a divorce are unsettling experiences that may affect
performance on the job. Large organizations provide personal
counseling services for their employees.
5. Substance abuse
The most serious personal problems are alcoholism and drug
abuse. These problems are temporary and are not solved by
ignoring them or by assuming they will be corrected on their own.
Both increases the rate of absenteeism and tardiness, contribute
significantly to accidents at work, and greatly reduce productivity.
Both are serious problems affecting employees at all levels in
almost every company. Both are now viewed as a disease – a
treatable diseases, not a disease that will go away by itself; it
requires a treatment needing confrontation.
 Discipline or Infraction Cases
Rules and regulations governing personnel discipline may
contain the following infractions covering the following subjects:
1. Against Person
a. Physical injury
b. Assault
c. Homicide
d. Murder
2. Against Property
a. Misuse of property
b. Damage to property
c. Theft and robbery
d. Negligence in the use of property
3. Orderliness/Good Conduct
a. Fighting/quarreling
b. Violation of rules
c. Discourtesy/disrespect
d. Intoxication while at work
e. Possession of drugs/narcotics/alcohol drinks
f. Illegal strike
g. Strike violations/sabotage
h. Failure to cooperate in investigations
i. Hygiene
j. Safety
k. Union activity
l. Moonlighting
m. Deportment
n. Financial interest
o. Unauthorized outside work
p. Personal affairs
q. Disorderliness, horseplay
r. Use of foul language
4. Attendance and Punctuality
a. Timekeeping violations
b. Absenteeism
c. Tardiness
d. Undertime
e. AWOL (absent without leave)
5. Morality
a. Immorality
b. Sexual harassment
6. Conflict of Interest
7. Nonperformance
a. Insubordination
b. Negligence of duty
c. Inefficiency
d. Malingering
e. Carelessness
f. Poor quality
8. Honesty/Integrity
a. Falsity/Falsification
b. Fraud
c. Dishonesty
d. Breach of trust
e. Unfaithfulness
f. Loss of confidence
g. Usurious transaction
h. Disclosure of information
i. Disloyalty
j. Nonpayment of debt
Addressing Employee Conduct
Problems
If an employee is exhibiting conduct problems, there are many steps
that a supervisor may take to help that employee to improve. Below are
some examples:
1. Discuss any misconduct or performance problems directly with the
employee. Give the employee an opportunity to provide an explanation,
and carefully listen to and consider what the employee has to say.
2. Clearly explain expectations to the employee and review any rules,
regulations, or policies in the area where the employee is exhibiting
problems. Provide the employee an opportunity to ask any questions
and offer assistance in complying with your expectations.
3. If applicable, develop a plan with the employee directed at helping to
improve misconduct. If possible, set time limits for improvement and be
very clear about the consequences.
4. Give the employee periodic and specific feedback. Be firm and
clear about what improvement you expect to occur. Tell the
employee you may have to take further steps if behavior does
not improve.
5. If misconduct continues, the supervisor may choose to orally
admonish the employee, providing a strong message that
further incidents of similar misconduct may lead to a more
formal action. If after all informal attempts have failed and the
misconduct continues, the supervisor, following consultation
with HR, may decide to formally discipline the employee.
Approaches to Discipline
The violation of company rules can be handled in many different
ways:
A. Hot Stove Rule by Douglas McGregor
This approach to discipline is discussed in terms of what happens
when a person touches a hot stove. The consequences are:
1. A warning system- a good manager has, before any behavior has
occurred, communicated what the consequences are for the undesirable
behavior.
2. An immediate burn- if discipline is required, it must occur immediately
after the undesirable act is observed. The person must see the
connection between the act and the discipline.
3. Consistency- there are no favorites; hot stoves burn everyone alike. Any
employee who performs the same undesirable act will be disciplined
similarly.
4. Impersonal- disciplinary action is directed against the act, not at the
person. It is meant to eliminate undesirable behaviors.
B. Progressive Discipline
This is an approach in which a sequence of penalties is administered,
each one slightly more severe than the previous one. The goal is to build a
discipline program that progresses from less severe to more severe in terms of
punishment. It is important any disciplinary system to formally record what
the policy is, and when and what was taken. This is the policy applied by most
employers that entails stronger penalties for repeated offenses. Its purpose is
to instill in the employee an opportunity for self-correction in order to avoid
further infractions (see topic on disciplinary process).
Progressive discipline must include due process to satisfy that
employee rights were not violated. It defines the conditions for responsible
use of discipline. This means that procedures were taken to ensure the
employee was treated justly and fairly to deter outbreaks from the labor
sector, especially unions. Major requirements include: presumption of
innocence until reasonable proof is presented, and the punishment must fi
C. Positive/Corrective Discipline
The advocate of this approach view it as future-oriented, as it involves
working with employees to solve problems do not occur again. Employees’
mistakes are used to help them learn how to change. The discussion focuses
on the problem and how it can be solved rather than who is to blame and why.
This is also an action that follows the infraction and to encourage employees
to comply with the existing rules and regulations and is oftentimes
accompanied by a disciplinary action such as warnings and suspensions.
The objectives of disciplinary action are positive in nature and include
the following: reforming the offender, deterring others from committing the
same infractions, and maintaining the smooth flow of effective group
standards with the primary goal of improving the future of the employee
instead of punishing him/her for his/her past.
D. Negative Approach
This approach emphasizes the punitive effects of undesirable behavior. The
purpose is to punish employees for mistakes and it is usually severe to remind
others the consequences of wrongdoing.
 The problem of this approach is that it motivates employees to achieve
only the minimum acceptable performance. Employee who are motivated by
fear are not oriented toward becoming outstanding performers because by
fear are motivated to avoid failure and to produce only the minimum amount
of work to avoid punishment.
E. Preventive Discipline
This is the action taken by companies to encourage employees to follow
standards and rules so that infractions do not occur. It is more proactive in
nature since it helps employees avoid infractions in the first place, by letting
them know firsthand what the rules and regulations are.
F. Counselling Approach
The erring employee is counseled rather than progressively penalized
for the first few breaches of rules and regulations. This approach believes that
employees can be constructively corrected without penalty.
First offense- given a private discussion
Second offense- entails a corrective approach
Third offense- entails an evaluation of the whole management
schema pinpointing error perhaps on the system itself. The focus
here is fact-finding and guidance to encourage desirable
behavior instead of using penalties to discourage undesirable
behavior.
Elements of a Disciplinary Program
An effective, comprehensive and successful disciplinary program
should contain the following elements.
a. Code of Conduct- a handbook that is provided to every employee
explaining what is expected and unacceptable behavior.
b. Knowledge of disciplinary punishments- employees should know
what penalties would occur with certain offenses.
c. Appeal procedure- employees should have the opportunity to voice
their side of the story.
d. Reservation of right- includes a statement that the firm has the right
to modify the policy.
e. Fair discipline- discipline must be applied consistently to all
employees in an unbiased way.
When setting up your discipline program, it should contain the
 The Disciplinary
Process
The disciplinary process should follow a sequence of increasing severe penalties for
wrongdoing. The process is called progressive discipline because the disciplinary action
becomes increasingly severe.
1. Informal talk- This may occur in cases where the misconduct is very minor.
2. Verbal warning- a simple comment by a supervisor to warn employees that certain acts
are not acceptable. The purpose is to ensure that employees know what is expected of
them and that is what they are doing is wrong. This is frequently used for minor
offenses such as frequent tardiness, discourtesy, and the like.
3. Verbal reprimand- the supervisor informs the employee that the situation is not
acceptable and improvement is required. Since the purpose is to correct the problem,
the employee should leave the discussion feeling encouraged and committed to
improve.
The supervisor should make a written note of the conversation in case
further discipline becomes necessary. Reprimands can take form of
constructive criticism and should include: making the facts surrounding
the reprimand clear; stating what the reprimanded employee must do
and why; and reaffirming one’s belief in the reprimanded employee.
Always document the discussion.
4. Written reprimand- a written description of the problem and the
disciplinary action. The supervisor prepares a written record that
summarizes what has been said and decided when the supervisor
discusses the problem with the employee. Both the supervisor and the
employee concerned should sign the reprimand. Employee should be
warned about the consequences if he/she does not change. In here, an
employee is given a written reprimand where he/she is asked to sign
his/her name on it, acknowledging its existence. This report is then
included in his/her 201 file or personnel record file for future use. In
general, this acts as a big deterrent to erring employees, since most
companies do background checks on aspiring employees by looking at
their previous employment record.
5. Suspension- if an employee fails to respond to the written
reprimand and persists in wrongdoing, suspension is applied
where an employee is not allowed to work for a period of time
and his/her compensation is reduced accordingly. The purpose
is to demonstrate the seriousness of the offense accordingly.
The purpose is to demonstrate the seriousness of the offense
and to reinforce the idea that appropriate behavior is a
prerequisite for maintaining a job. The length of suspension
should be considered in light of the seriousness and type of
offense. The supervisor and the HR head must be able to
document every incident that has led to suspension, explain
why it is an unacceptable behavior, indicate the length of the
suspension, and what action will be taken next.
6. Demotion- This step will occur when it becomes necessary to
use against the employee before termination.
7. Discharge/dismissal- represents the final step in the
disciplinary process. If progressive discipline failed to correct
the employee, termination will result. This should not be
issued until all facts have been gathered and carefully
considered. Demotions and transfers are two other
alternatives for taking disciplinary actions and are usually
recommended only for problems of unsatisfactory
performance.