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Quote of the Day

“To stand in silence when they should be protesting makes cowards out of men”  

Abraham Lincoln

“Ignorance is bliss they say but to actually know what they were doing, you can’t stand by and let that happen”

Joseph M. Darby (pg. 678)

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Introduction to Chapter 17

Consider how global competition has reshaped the social contract between organizations and their workers

http://www.youtube.com/watch?v=R71jpurgt7Q

YOU, inc. Consider the trend toward more expansive employee

rights• Right not to be fired without just cause• Right to due process and fair treatment• Right to freedom of speech in the workplace

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Discussion question

Explain the employment at will doctrine in your own words.

How is it being eroded?

Do you think it is leading to a healthy or an unhealthy employment environment in the US?

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The New Social Contract

Reasons for Change in the Social ContractReasons for Change in the Social Contract

GlobalizationGlobalization ShareholderActivism

ShareholderActivism

Technologyand

Automation

Technologyand

AutomationDeregulationDeregulation

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The Changing Social Contract

Old Social Contract New Social Contract

Job security Few tenure arrangements

Life careers with one employer Few life careers; changes common

Stable positions / job assignments Temporary project assignments

Loyalty to employer Loyalty to self

Paternalism Relationships far less familial

Employee sense of entitlement Personal responsibility for one’s job future

Stable, rising income Pay for “value added”

Job-related skill training Employees in charge of own education

Focus on individual accomplishments Focus on team building and projects

Figure 17-1 6

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Employee Rights

Outplacement services - Assistance provided to laid-off employees

Employee rights provide workers with:1. Desired outcomes or2. Protection from unwanted outcomes

http://www.workplacefairness.org@

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Sources of Employee Rights

Employee Rights

Statutory rights (legal, contracted) Collective bargaining rights (union) Enterprise rights (implied, policy)

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Models of Management Morality

MoralManagement

MoralManagement

Employees are a human resource that must be treated with dignity andrespect.

Employees are a human resource that must be treated with dignity andrespect.

AmoralManagement

AmoralManagement

Employees are treated as the law requires.Employees are treated as the law requires.

ImmoralManagement

ImmoralManagement

Employees are viewed as factors ofproduction to be used, exploited, and manipulated.

Employees are viewed as factors ofproduction to be used, exploited, and manipulated.

Figure 17-2

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Job-Related Rights

The right not to be fired without just cause

The right to due process and fair treatment

The right to freedom, particularly freedom ofexpression and freedom of speech

The rights to privacy, safety, and health in theworkplace

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Right Not to be Fired Without Cause

Public Policy Exceptions

Public Policy Exceptions

ContractualActions

ContractualActions

Breach of GoodFaith Actions

Breach of GoodFaith Actions

Employment-at-Will DoctrineEmployment-at-Will DoctrineEmployment-at-Will DoctrineEmployment-at-Will Doctrine

Protects employees from being fired forrefusal to commit crimes

Protects employees from being fired forrefusal to commit crimes

Protects employees who they believe have contracts or implied contracts

Protects employees who they believe have contracts or implied contracts

Employers are expected to hold to a standard of fairness and good faith dealings

Employers are expected to hold to a standard of fairness and good faith dealings

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Management’s Response to Job Claims

1. Employees deserve respectful treatment.

2. Employees do not have the option of being arbitrary or capricious with employers. Employers should bear the same responsibility.

3. Employees are expected to be trustworthy, loyal and respectful with employers. Employers should show employees the same consideration.

Objections to Employment-at-WillObjections to Employment-at-WillObjections to Employment-at-WillObjections to Employment-at-Will

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Terminating an Employee

1. Fire employees in a private space.

2. Be mindful of employees’ logistics.

3. Preserve the employee’s dignity.

4. Choreograph the notification in advance.

5. Use transparent criteria for layoffs.

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The Right to Due Process

DueProcess

The right of employees to havedecisions that adversely affect themto be reviewed by objective, impartialthird parties.

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The Requirements of a Due Process System

1. It must be a procedure and must follow rules.

2. It must be visible so that potential violators are aware of it.

3. It must be predictably effective.

4. It must be institutionalized.

5. It must be perceived as equitable.

6. It must be easy to use.

7. It must apply to all employees.

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Alternate Dispute Resolution

Open-Door PolicyOpen-Door Policy

Hearing ProcedureHearing Procedure

The OmbudsmanThe Ombudsman

The Peer Review PanelThe Peer Review Panel

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Freedom of Speech in the Workplace

Whistle-Blower

An organization member who discloses illegal, immoral, orillegitimate practices under the control of their employers, to personsor organizations that may be able toeffect action.

http://www.whistleblowers.org@

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Whistle-Blowing

Key Elements in the Whistle-Blowing Process

1. The whistle-blower

2. The complaint

3. The party to whom the complaint is made

4. The organization against which the complaint is made

5. http://www.youtube.com/watch?v=ZIjpP-XngKA (The “Insider” Russell Crowe, Al Pacino : Tobacco Companies/Sixty Minutes)

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Two Views of Employees Responsibility inWhistle-Blowing Situation

Corporate

Employer

Corporate

EmployerLoyalty

ObedienceConfidentiality

EmployeEmployeee

EmployeEmployeee

TraditionalTraditional

(Has certain rights)

PublicPublicEmployeEmployeee

EmployeEmployeee

Corporate

Employer

Corporate

Employer

Whistle blowingWhistle blowing

Responsibility Responsibility

(Has certain rights)

(Has certain rights)

EmergingEmerging

Figure 17-3

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A Checklist to Follow Before Blowing the Whistle

1. Is there any alternative to blowing the whistle?

2. Does the proposed disclosure advance public interest rather than personal or political gain?

3. Have you thought about the outcomes of blowing the whistle for yourself and your family?

4. Have you identified the sources of support on which you can rely during the process?

5. Do you have enough evidence to support your claim?

6. Have you identified and copied all supporting records before drawing suspicion to your concerns?

Figure 17-4

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Consequences of Whistle-Blowing

Firing More stringent criticism of work Less desirable work assignments Pressure to drop charges against the company Heavier workloads Loss of perquisites Exclusion from meetings previously attended

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Whistle-Blowing

1978 Civil Service Reform Act Michigan Whistle-Blowers Protection Act of 1981 Sarbanes-Oxley Whistle-Blower Protections False Claims Act pg. 681 “qui tan”

Examples of Government Protection

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Whistle-Blowing

Comprehensive coverage for all employees of publicly-traded companies

Comprehensive protection for discrimination or harassment

Any corporate conduct that could threaten shareholder value

Timely responses

The right to a jury trial

Lessened burden of proof on employee

Compensatory damages and judicial fees

Criminal felony penalties for retaliation

Audit committees required to have complaint response procedures

Sarbanes-Oxley Whistle-Blower Protections

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Management’s Responsiveness to Whistle-Blowing

1. Managers must be clear that they invite suggestions.

2. Managers must refute commonly held assumptions and organizational myths that discourage communication.

3. Managers should tailor rewards so that employees share more directly in cost savings or sales increase from ideas they offer.