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TURNOVER & LABOUR RELATIONS (Types of Employee Turnover (Voluntary:…
TURNOVER & LABOUR RELATIONS
Types of Employee Turnover
Voluntary
: employee separation occurs bc the employee chooses to leave
Cost associated
recruiting, selecting, training replacements
lost productivity
loss of talented employees
refer to table 11.1
Involuntary
: employee separation occurs bc the employer chooses to terminate the employment r/s
--> not always due to performance reasons
--> downsizing to save costs, technological disruptions, misconduct
Cost associated:
recruiting, selecting, training replacements
lost productivity
lawsuits (if employees feel they are unfairly treated)
workplace violence
refer to table 11.1
Types of Employee Turnover and Retention
Functional Retention: desirable employee remains w org
Dysfunctional Retention: undesirable employee remains w org
Dysfunctional Turnover: desirable employee quits
Functional Turnover: undesirable employee quits
refer to table 11.2
Employee Separation
Orgs must develop a standardised, systematic approach to discipline and discharge
These decisions should not be left solely to the discretion of individual managers or supervisors
--> to avoid personal bias
Policies should be based on principles of justice and law
--> e.g. MOM's employment practices > Termination of employment
Bc of the critical financial and personal risks associated w employee dismissal, it is easy to se why orgs must develop a standardised, systematic approach to discipline and discharge.
The law gives employers wide latitude in hiring and firing, but employers must meet certain requirements. They must avoid wrongful discharge and illegal discrimination. They must also meet standard related to employees' privacy and adequate notice of layoffs.
Principles of Justice
Distribution/ Outcome Fairness
a judgment that the consequences given to employees are just
consistent outcomes
knowledge of outcomes
outcomes in proportion to behaviours
typically referred to rewards but can be for justice too
Procedural Justice
a judgment that fair methods were used to determine the consequences an employee receives
consistent procedures
avoidance of bias
accurate info
way to correct mistakes
representation of all interests
ethical standards
Interactional Justice
a judgment that the org carried out its actions in a way that took the employee's feelings into account (e.g. empathy, civil)
explanation of decision
respectful treatment
consideration
empathy
video vs personal --> physically being there is more personal
Downsizing
Layoffs
: large-scale terminations of employment that are unrelated to job performance
--> used more permanently
Downsizing
: widespread layoffs w the objective of permanently reducing the no. of employees
--> strategic decision but outcome is the same, large-scared reducing employees due to cost
Effects of Layoffs on Employees
Layoff victims
: employees who lost their jobs
decline in psychological well-being and mental health
--> many identify a lot w their positions esp when they take a lot of pride in their work
--> fear of how "I" can potentially be next
--> procedural fairness --> communicated to employees well, reasons are well stated
--> interactional fairness --> communicated well, allowed to raise any concerns
less satisfaction w other aspects of life e.g. marriage and family life
Layoff survivors
: employees who continue to work for the downsizing org when their coworkers are laid off
decline in psychological well-being and mental health
--> procedural fairness matters
Outplacement Counselling
: a service in which professionals try to help dismissed employees manage the transition from one job to another
goals for outplacement counselling are to help former employee address psychological issues associated w losing a job-grief, depression and fear while helping them find a new job
incorporate outplacement counselling in their dismissal process, helps in the well-being of those laid off and those who are still in the co.
Outsourcing Execution of Dismissal
Adv:
experts, person can detach him/herself from the co.
when too attached to employee, makes it difficult to fire the person
seems fair bc they dk the person they are firing
Disadv:
when current employees see them, they know someone is gna get fired
employee will feel betrayed
Using vid-conference to fire employees
employee can choose to not pay attention to the vid and walkaway
prevents employees to ask qns to find out more --> detrimental to layoff process as it may start rumour amongst employees
reasons to be fired: if don't have good and justified grounds for the reason the person is fired, can lead to lawsuits
Progressive Discipline
Hot-Stove Rule
: give clear warning and follow up w consistent, objective, and immediate consequences.
--> anyone who ignores the warning will be burned
Progressive Discipline
: formal discipline process in which the consequences bc more serious if the employee repeats the offence.
Progressive Discipline Responses
Unofficial spoke warning --> official written warning --> 2nd written warning + threat of temporary suspension --> temporary suspension + written notice that this is a last chance to improve --> termination
refer to table 11.3
this process fulfils the purpose of discipline by teaching employees what is expected of them and creating a situation in which employees must try to do what is expected
seeks to prevent misbehaviour (by publishing rules) and to correct, rather than merely punish
should have requirements for documenting the rules, offences, and responses.
provide opportunity to hear every point of view and to correct errors, following a procedure that is consistent for all employees
Rules of behaviour should over disciplinary problems such as:
Tardiness
Absenteeism
Unsafe work practices
Poor quantity or quality of work
Sexual harassment
Impaired by alcohol or drugs
Theft of co. property
Cyberloafing (using internet to do things unrelated to your job)
--> creating a formal discipline process is a primary responsibility of HR dept
--> org must communicate these rules and consequences in writing to every employee
Guidelines to Respond to Misconduct
Be clear abt performance standards
Be consistent
Don't ignore the problem behaviour
Investigate complaints asap
Record statements in writing, w signatures and dates
Focus on behaviours not personalities
Documentation should be clear and complete
Be honest
Labour Relations
Unions and Labour Relations
Unions
: orgs formed for the purpose of representing their members' interests in dealing w employees
--> collective bargaining
--> responsibility for development (employers vs employees); how to ensure employees interests are represented? This is where unions come into play
Labour relations
: field that emphasises skills managers and union leaders can use to minimise costly forms of conflict (such as strikes) and seek win-win solutions to disagreements
--> management foals are to increase org's profits, expect unions will make these goals harder to achieve
Unions in SG
The Trade Unions Act defines a trade union as any association or combination of workmen or employers, whether temporary or permanent, whose principal objective is to regulate relations b/w workmen and employers for all or any of the following purposes:
to promote gd industrial relations b/w workmen and employers
to improve the working conditions of workmen or enhance their economic and social status
to achieve the raising of productivity for the benefit of workmen, employers and the economy of SG
Impact of Unions
Orgs are concerned abt the impact of unions on firm performance
-ve
: decrease in productivity resulting from work rules and limitations on workloads and lost production due to strikes and work slowdowns
+ve
: reduce turnover by giving employees a route to resolve conflicts and maintaining an emphasis on pay systems based on seniority, which removes incentives for employees to compete rather than cooperate
--> if no avenues in co., unions can help to improve perception of justice fo employees and improve turnover rate
--> in contrast to traditional view that laboir and management are adversaries, some orgs and unions work more cooperatively