Chapter Outline
¤ Gaining Competitive Advantage Opening Case:
Gaining Competitive Advantage at the Mariott /
Linking Workplace Justice to Competitive Advantage
¤ HRM Issues and Practices:
Workplace Justice and Employment Discrimination /
Employee Privacy Rights /
Wrongful Termination and Employment-at-Will
¤ The Manager’s Guide:
Workplace Justice and the Manager’s Job /
How the HRM department can Help /
HRM skill-Building for Managers.
Gaining Competitive Advantage Opening Case: Gaining Competitive Advantage at the Marriot A. The Problem: Marriot’s Open-Door Policy Fails to Resolve Employee Compaints “Guarantee of Fair Treatment” to handle employee complaints. To resolve a complaint, employees were to go through the chain of command. Complaint ( Discrimination or Sexual harassment ) 1. Bring the complaint to the immediate supervisor. 2. to the supervisor’s boss 3. to individuals further up the managerial ladder Open-door policy was not working as evidenced by the large number of discrimination suits filed by employees.
B. The Solution:
Implementing a Peer Review Process Marriot initiated a peer review system Employees with a complaint are encouraged to first pursue the open-door policy. when the complaint reaches the senior executive in the business unit, the employee has the option of bringing the matter to the peer review panel. this panel, comprises of three peers and two managers, makes final, binding decisions on all grievances brought before it.
C. How the Peer Review Process Enhanced Competitive Advantage Feedback from both employees & managers has been overwhelmingly positive. The process is popular with employees because they feel panel members are fair & objective. Management sees the panel as an opportunity to reinforce & clarify its corporate policy & work rules.
Linking Workplace Justice to Competitive Advantage Workplace justice laws – Laws that regulate the day-to-day treatment of employees. Competitive Advantage – can come from lower litigation costs. positive employee attitudes & behavior, & an excellent company image.
A. Reducing Litigation Costs Workplace laws infractions cost firms a lot of money. Legal actions by employee have forced some otherwise financially healthy firms.
B. Favorably Affecting Employee Attitudes and Behaviors Employees who think they have been unjustly treated usually respond by engaging in activities that ultimately harm a company’s competitive advantage. They may respond passively by becoming less committed to their organization, or by becoming poor “Organizational Citizens”. The link between workplace justice & organizational commitment has been documented be several empirical studies.
C. Ptromoting a Favorable Company Image Justice in the workplace promotes a favorable image of the company with in the community at large. A good corporate image can significantly boost a firm’s recruiting efforts. The presence of workplace justice within a company can boost a company’s image as good place to work for women & minorities. Hence, having a good reputation f or dealing with female & minority employees can favorably affect sales volume.
HRM Issues and Practices we first discuss workplace justice laws that address employment discrimination. we then turn our attention to workplace justice laws dealing with employee privacy, rights and wrongful termination.
A. SEXUAL HARRASSMENT Sexual harassment at the work place is a long-standing problem, affecting a large percentage of working women. It is a form of sex discrimination and therefore violates Title VII at the Civil Rights Act (CRA).
Sexual Harassment and competitive advantage Acts of sexual harassment within a company can damage the firm’s competitive position. Harassed employees may feel angry if they are being exploited as sex objects or if their peers do not take their work seriously. Not only they will feel angry, they may also fear being labeled as troublemakers if they complain.
Sexual harassment causes numerous problems for empoyers. One is turnover; harassed employees may quit their jobs because they believe there is no way to remedy their situation. Other possible problems associated with the occurrence of sexual harassment include absenteeism, low morale, lack of effective teamwork, poor productivity, and employee stress and\or psychological problems. Moreover, harassment lawsuits can be very costly. If a firm loses such a suit, it is liable for compensable damages and, under the CRA of 1991, possible punitive damages.
Forms of Sexual HarassmentSexual harassment can fall into one of two categories: quid pro quo and hostile environment. Quid pro quo is a Latin for “this for that” . In the context of sexual harassment, the terms refers to a situation in which an employee or an applicant must provide sexual favors in order to be hired, promoted, granted a pay raised, or allowed to keep a job.
Hostiles environments are those in which employees are subjected to unwelcome, intimidating working conditions. As a case involving the issue of hostile environment came before a Supreme Court in 1993.Ms. harris claimed that her boss made her work environment hostile and intimidating by: • Asking her to retrieve objects from his pocket. • Making derogatory statements, such as “ You’re a women, what do you know?” • Suggesting that she accompany him to hotel to negotiate her raised. • Telling other employees that she promised sexual favors to secure an account. Another instance of hostile environment is illustrated in a court case in which an employer was found guilty of sexual harassment for these reason: • Pictures of nud women appeared throughout the workplace. • Male workers frequently made sexual comments. • Coarse jokers, abusive graffiti, and offensive touching were commonplace.,/p>
How should employers deal with sexual harassment? an employer should take the following steps: 1. Establish a written sexual harassment policy. The policy should specify grievance procedures by which employees can bring claims of harassment to management’s attention. These procedures should provide employees with opportunities to by-pass their supervisor if the supervisor is the one being accused. 2. Provide supervisory training that focus on the legal definition of sexual harassment. in addition to holding formal training session, top management should also meet employees to stress management’s strong commitment to keep the work place free of harassment. 3. Establish investigatory guidelines that maintain employee confidentiality. 4. Establish a committee composed of both men and women to investigate sexual harassment claims. committee members should receive training on how to investigate harassment claims. 5. Establish a means of detecting unreported instances of sexual harassment within the company. Attitude surveys and exit interviews may identify such instances.
B. Pregnancy DiscriminationMost women (approximately 80 %) will become pregnant during their careers. Firms should attempt to accommodate the special needs of these individuals. competitive advantage can be enhanced by such accommodation, as illustrated by the findings of a two-year national study. the study compared the work-related attitudes and behavior of women working in “accommodating firms” to those working in “nonaccommodating firms”.
The finding indicated that women working in accommodating firm: • Were more productive, • took fewer sick days, • worked later into their pregnancy, and • were more likely to return to work after childbirth. C. Family and medical leave The Family and Medical Leave Act (FMLA) of 1993 requires all employers of 50 or more employees to grant workers up to 12 weeks of unpaid leave per year for the care of a newborn child, an ill family member, or their own illness. Employees may take the leave all at once in increments. D. Fetal Protection Policies Fetal protection policies ( FPPs) excludes women of childbearing age from jobs that could cause potential reproductive hazard, such as those involving toxins, and those that can cause sterility, infertility, sperm abnormality, stillbirth, miscarriage, birth defects, or damage to sexual organs. Such policies exclude all women regardless of their marital status, use of birth control, or childbearing intention. Women are exempted from an FPP only if they can show proof of surgical sterilization. Employers issue FPPs because they want to: • Comply with OSHA (see Chapter 13), which requires that employers provide a safe and healthy workplace, protecting workers from substances that could damage their reproductive health. • Minimize potential legal liability arising from birth defects. • Avoid publicity arising from lawsuits involving the birth of a deformed child – publicity that could be devastating to a company’s image • Meet their moral obligation to prevent birth defects by keeping female employees away from workplace hazards. Fetal protection policies ca hinder job opportunities for many women. Some women are already being affected in that FPPs have been adopted by such companies as Cyanamid, Du Pont, Exxon, Firestone, General Motors, Monsantok, and Olin. Many more could be affected in the future, because it has been estimated that as many as 20 million jobs could be closed to women if all companies with potentially hazardous environments adopted such policies. Because they adversely affect working women, FPPs, even if well intentioned, may be discriminatory. The Supreme Court addressed this issue in a case in which a company’s FPP barred all fertile women from jobs involving exposure to high amounts of lead. The Court ruled that the company’s FPP was discriminatory because the dangers of lead exposure applied equally to men, and yet men were not barred from these jobs. What is an Employer to do? If ever there were an issue that puts management squarely between “a rock and a hard place,” fetal protection policies are it. On the other hand, such a policy can be considered discriminatory. On the other, employers have both a moral and legal responsibility to protect workers from workplace hazards. Clearly, some sort of compromise solution is necessary. Some guidelines for dealing with this issue are offered in Exhibit 11.2. E. Discharge and Discrimination A decision to discharge an employee is discriminatory if it is influenced by the employee’s protected group membership. An employer must thus prepare to defend itself against possible charges of discrimination each time a discharge decision is made. The evidence needed to justify the legal fairness of discharge decisions varies, depending on the reason for decision. We now explore the two most common reasons; employee misconduct and poor performance. 1. Employee Misconduct – misconduct occurs when an employee commits an infraction of workplace rules. 2. Poor Performance Evidence that would buttress an employer’s case includes the following: • Additional evidence of poor performance, such as notes, memos, records of customer complaints or eyewitness testimony of poor performance • Records with demonstrate that the discharged individual has been treated the same as others in the company who have had similar performance problems • evidence demonstrating that, prior to the discharge, the manager attempted to help the employee improve substandard performance by providing counseling. F. Layoffs and Discrimination First, it must demonstrate that the layoff was not simply a guise for discrimination. Second, an employer must justify why it chose to lay off the complainant, rather than another employee; that is, it must demonstrate that its decision was based on genuine business concerns and was thus not a pretext for discrimination. G. Early Retirement and Discrimination A firm can avoid such charges by asking early retirees to sign written waivers of their right to sue under the Age Discrimination in Employment Act ( ADEA ). The waivers, however, must meet minimum standards stipulated by the Older Workers Benefit Protection Act ( OWBPA ), enacted in 1990. H. Employee Privacy Rights Privacy concerns surface at the workplace when organizations attempt to collect and/or disseminate information about employees in ways that intrude on their privacy. Privacy issues surface when employee behavior is constrained by certain workplace rules and policies, denying employees the right to be “let alone” or to do as they please. Employee privacy concerns may arise during selection or during the term of employment. I. Information Collection and Use Most human resource information systems ( HRIS ) contain literally hundreds of facts on each employee. Much of this information also appears in each employee’s personnel life. Employees may justifiably lodge an invasion of privacy claim if the information collected by the employer is irrelevant to the employer’s business needs. A company needs a clear business reason for each piece of information collected and maintained on an individual. 1. Access to Employee Data – According to the Privacy Act 1974, public – sector employees must be given access to any information in their files. Specifically, the act states that employees have the right to; • Determine what information is being kept on them by their employees • Review that information • Correct erroneous information • Prevent the information from being used for a purpose other than that for which it was collected. 2. Who has Access to Information? When releasing information about an employee, the employer must ensure that; • The information is given I good faith • No malice is intended • The receiving party has a legitimate reason for wanting the information. J. Searches Property searches include an employer’s inspection of employees’ personal belongings located on the employer’s premises in lockers, desks, automobiles, or file cabinets. Body searches include pat – down frisks and strip searches. Employer’s search must meet three criteria; • A company must have a reasonable basis for conducting the search. • A set of written guidelines, issued by the company, should inform employees of its search policy. • The person conducting the search should take a;; reasonable precautions to ensure the search is not conducted offensively or abusively. K. Surveillance and Monitoring * Surveillance and monitoring activities, tracking the behavior of the employees both on and off the job. * Surveillance and monitoring methods- include wiretapping, computer monitoring , watching employees through closed-circuit televisions, and using private investigators to watch employees outside the workplace. Proponents of such practices claim that they serve a legitimate purpose; they help organizations improve efficiency, provide employees with performance feedback, ensure customer satisfaction, and detect theft. * Surveillance and monitoring practices are not without their critics. * Monitoring and surveillance are thus subject to the sam restrictions as employees searches. Surveillance and monitoring activities can reduce employee morale and lead to possible legal problems, employers can proceed cautiously. L. Workplace Rules * Rules to restrict certain types of employee behaviors such as theft, insubordination, drug use, or horseplay. * Rules are likely to be challenged if they restrict to employee freedoms in areas that workers have traditionally viewed as highly private. A. NON-SMOKING RULES Companies institute no-smoking rules for several reason: 1. One is the employees concern for the well-being of its nonsmoking employees. 2. for banning smoking is financial one. Smokers are not protested group and therefore are not eligible for protection under federal antidiscrimination laws. B. RULES GOVERNING ROMANTIC RELATIIONSHIP - The concern here is that the “favored” employee may be more likely to be granted rewards, such as promotion. - Concern that the “favored” employee may be denied reward if the relationship were to end. C. EMPLOYEE MISCONDUCT OUTSIDE THE WORKPLACE - If an employer discharges an employee for misconduct outside the workplace, it must be prepared to prove that (1) there is some relationship between the misconduct and the job (2) the continued employment of the ‘guilty” individual would have a disrupted impact on the workforce. M. WRONGFUL TERMINATION AND EMPLOYMENT –AT-WILL - Employers are not free to discharge their employees for any reason, even an unfair one, unless the discharge is limited by contact or by federal or state status. I. Statutes Prohibiting Wrongful Termination - wrongful termination if their collective bargaining agreement specifies that discharges may be made only if there is “just cause”. II. Exceptions to the employment-at-Will Doctrine - This exceptions draw on common law and vary from state to state. Most commonly, courts apply exception based on public policy, implied contract, and good faith and fair dealing. a.) The public policy exception – is any doctrine that serves society; if public policy is violated, society will suffer harm. A violation would occur if an employer fired someone engaging in an activity encouraged by public policy such as: * serving on the jury duty * Exercising his or her rights to file a worker’s compensation claim * Whistle-blowing * Participating in a legal proceeding contrary to employer’s wishes. Employers would also violate public policy if they fire someone refusing to perform an act condemned by a public policy. Employees could litigate based on a public policy claim if they were discharged for: - Refusing to commit perjury - Refusing to commit an unlawful act, like fudging tax returns. - Refusing to steal secrets from a company’s competitors. b.) the good faith and fair dealing Exception – state courts that recognize this principle prohibit discharges that are particularly repugnant or unfair such as: - Hiring an employee who must move his/her home from one city to another and unfairly person within a short period of time. - Firing someone to prevent benefits from vesting or to prevent an employee from receiving earned commissions. III. Preventing Wrongful Termination - An employer may take one or two approaches to minimize the chances of losing a wrongful termination suit. An employer wishing to take this approach should to the following: 1.) Include an “at-will” statement on the application form, 2.) Place a disclaimer in the employee handbook stating that the document is not to interpreted as a contract; that it is provided as a matter of information only. 3.) Train interviewers to avoid making comments to applicants that imply long-term job security. THE MANAGER’S GUIDE Workplace Justice and the Manager’s job Line managers neither make policy nor establish procedures for ensuring workplace justice, their role is nevertheless vital. Managers (1) communicate workplace policies and procedures to their employees, (2) create work environments that foster adherence to policies and procedures, and (3) take appropriate action when possible policy violations arise. 1,) Communicating Workplace Policies and Procedures – first, each employee must be fully aware of the company’s code of conduct. 2.) creating a Good Work Environment – second, managers must create a work environment in which people do what they are suppose to do, because they want to do it. 3,) Dealing Effectively with Possible Policy Violations – third, managers must be able to deal effectively with “problem subordinates” – individuals who do not follow workplace rules. This role may be the most difficult for managers to play. As management expert John Vegas notes: (a) One universal truth about managers is that all of them have problem subordinates. (b) Too many managers are unwilling to confront problem subordinates. (c) Therefore, when the problems persist, managers are as much as fault as subordinates. (d) Clearly, managers must examine their role in creating problem subordinates, and figure out how to prevent such problems relationships. (e) Managers should deal directly with such subordinates. How the HRM Department Can Help HR professionals help establish fair and just policies. Once such policies are designed, the HR professional plays three roles: (1) implementation, (2) development of a conflict resolution mechanism, and (3) assisting managers with workplace justice- related issues. The Implementation of Discipline and Discharge Policies First, they convey the organization’s code of conduct to the employees during employee orientation and through training programs and employee handbooks. Second, HRM departments maintain companywide disciplinary records that can be reviewed before termination is proposed. Development of a Conflict Resolution Mechanism Descriptions of some alternative dispute resolution mechanisms follow: • Peer review panels • Mediation • Arbitration • Use of an Ombudsman Assisting Managers with Workplace Justice-Related Issues: Assistance may take the form of day-to-day advice for dealing with difficult situations, or it may be given in the context of a formal training program designed to teach managers how to prevent disciplinary problems. HRM Skill-Building for Managers To conduct disciplinary investigations, know how to investigate claims of sexual harassment, and be able to conduct disciplinary conferences with employees. Conducting a Disciplinary Investigation If you become aware of a possible violation of company rules, you should proceed as follows: 1. Get the Facts 2. Review applicable rules 3. Meet with the employee 4. Decide what kind of discipline, if any, to reco0mmend 5. Provide proper documentation Investigating Claims of Sexual Harassment The investigation should proceed as follows: 1. Determine if the alleged behavior has actually occurred. 2. Determine if it could be legally construed as sexual harassment 3. Determine appropriate action to take Conducting a Disciplinary Conference To conduct a disciplinary conference, follow this steps: 1. Get the Facts 2. Arrange for the interview 3. Put the employee at ease 4. State the facts of the case 5. Ask for reasons 6. State the company policy that has been violated 7. State the reason for the policy and the possible harm caused by the employee’s violation 8. Get the worker to agree on the problem 9. State the action and the reason for it 10. Involve the employee in a problem-solving discussion 11. Have the employee summarize the problem and the agree- on solution 12. Agree on a follow-up date 13. End the discussion on a positive note