CH-10 Employee Separation and Retention – Human Resource Management : Book Guide

Chapter 10 - Employee Separation and Retention Please click here to access the new HRM Failures case associated with this chapter. HRM Failures features real-life situations in which an HR conflict ended up in court. Each case includes a discussion questions and possible answers for easy use in the classroom. HRM Failures are not included in the text so that you can provide your students with additional real-life content that helps engrain chapter concepts. Chapter Summary The purpose of this chapter is to focus on employee separation and retention. The chapter is divided in two sections. The first examines involuntary turnover, that is, turnover initiated by the organization. The topics covered include principles of justice, progressive discipline, alternative dispute resolution, employee assistance programs, and outplacement counseling. The second part deals with voluntary turnover, that is, turnover, initiated by employees. The topics covered include job withdrawal and job satisfaction and how survey feedback interventions can be used to retain high performers. Learning Objectives After studying this chapter, the student should be able to: 1. Distinguish between involuntary and voluntary turnover, and discuss how each of these forms of turnover can be leveraged for competitive advantage. 2. List the major elements that contribute to perception of justice and how to apply these in organizational contexts involving discipline and dismissal. 3. Specify the relationship between job satisfaction and various forms of job withdrawal, and identify the major sources of job satisfaction in work contexts. 4. Design a survey feedback intervention program and use this to promote retention of key organizational personnel. Extended Chapter Outline Note: Key terms appear in boldface and are listed in the "Chapter Vocabulary" section. Opening Vignette: “Churning” About to Heat Up Employee churn (voluntary separation from current employment – often to take on new jobs the employee has already arranged) has traditionally been high in the US. This type of turnover does not impact the economy in general and often is beneficial to employers who can attract the best workers. During the period from 2007-2009 (the start of the recent economic downturn), employees had been reluctant to leave their employers and decreased the churn rate. The rate jumped again in 2010 and 2011 again appears to be poised to continue rising. While churn may be have its benefits, it also costs employers nearly $2 trillion in recruitment and training costs. Discussion Question 1. What might be some of the benefits of churn to the employment market? The individual employer? The economy in general? What might be some drawbacks? Answer: Student’s answers will be varied as each will bring a different view of churn. Benefits to the market might include an increase in employees in the market for employment. For the individual employer, one benefit might be an increase in the quality and skill level of their workforce. For the economy, this might spell out an overall more productive workforce. The drawback would be the increased difficulty in finding employment for those employees who are not top notch employees. Benefits of churn: 1. Talent Redistribution: Churn allows for the redistribution of talent, enabling individuals to find roles better suited to their skills and career goals. 2. Innovation and Fresh Ideas: New employees bring fresh perspectives and ideas, which can drive innovation within organizations. 3. Skill Development: Frequent job changes can lead to diverse skill sets and experiences, enhancing workers' adaptability and employability. 4. Economic Growth: Churn can stimulate economic growth by creating job opportunities and fostering competition among employers. Drawbacks of churn: 1. Increased Recruitment Costs: High turnover can lead to increased costs for recruiting and training new employees. 2. Disruption: Frequent departures and new hires can disrupt organizational continuity and affect productivity. 3. Reduced Morale: High churn rates can lower employee morale and create instability within teams. 4. Loss of Experience: Organizations may lose valuable institutional knowledge and experienced staff, impacting long-term performance. I. Introduction To compete effectively, organizations must take steps to ensure that good performers are motivated to stay with the organization, whereas chronically low performers are allowed, encouraged, or if necessary, forced to leave. Retaining top performers is not always easy, however. Similarly, the increased willingness of people to sue their employer, combined with an unprecedented level of violence in the workplace, has made discharging employees legally complicated and personally dangerous. A. Involuntary turnover—turnover initiated by the organization (often among people who would prefer to stay) B. Voluntary turnover—turnover initiated by employees (often whom the company would prefer to keep). II. Managing Involuntary Turnover Despite a company’s best efforts in the area of personnel selection, training, and design, some employees will occasionally fail to meet performance requirements or will violate company policies while on the job. The company must then utilize its discipline policy that may lead to the individual’s discharge. •The employment-at-will doctrine is a doctrine that, in the absence of a specific contract, either an employer or employee could sever the employment relationship at any time. Today, however, this policy is not always upheld and employees sometimes sue their employers for wrongful discharge. •In addition to the financial risks associated with a dismissal, there are issues related to personal safety. Violence in the workplace has become a major organizational problem in recent years. •A standardized, systematic approach to discipline and discharge is therefore necessary. A. Principles of Justice 1. Outcome fairness refers to the judgement that people make with respect to the outcomes received relative to the outcomes received by other people with whom they identify. 2. Procedural justice is a concept of justice focusing on the methods used to determine the outcomes received (Table 10.1). 3. Interactional justice is a concept of justice referring to the interpersonal nature of how the outcomes were implemented (Table 10.2). B. Progressive Discipline Effective discipline programs have two central components—documentation and progressive punitive measures (Table 10.3). This may start with an unofficial warning for the first offense, followed by a written reprimand for additional offenses. At some point, later offenses may lead to a temporary suspension. C. Alternative dispute resolution (ADR) is a method of resolving disputes that does not rely on the legal system. In general, this form of resolution proceeds through four stages: open door policy, peer review, mediation, and arbitration (Table 10.4). D. Employee assistance programs (EAPs) attempt to ameliorate problems encountered by workers who are drug dependent, alcoholic, or psychologically troubled. They are basically referral services that supervisors and employees can use to seek professional treatment for various problems. Many EAPs are now fully integrated into companies’ overall health benefit plans, serving as gatekeepers for healthcare utilization. 1. EAPs are usually identified in official documents published by the employer (employee handbook). Both supervisors and employees may be trained in using the referral system. Evaluation of their success is important because they are just evolving. 2. The key to the effectiveness of an EAP is striking the right balance between collecting information that can be used to promote employee health on the one hand and the employee’s right to privacy on the other. E. Outplacement counseling is counseling to help displaced employees manage the transition from one job to another. III. Managing Voluntary Turnover A. Process of Job Withdrawal—Progression of withdrawal is a theory that dissatisfied individuals enact a set of behaviors in succession to avoid their work situation (see Figure 10.2). 1. Behavior Change a. An employee's first response to dissatisfaction would be to try to change the conditions that generate the dissatisfaction. This could lead to supervisor subordinate confrontation, perhaps even conflict, as dissatisfied workers try to bring about changes in policy or upper level personnel. b. When employees are unionized, dissatisfaction leads to an increased number of grievances being filed. c. Employees sometimes initiate change through whistle blowing, making grievances public by going to the media or government. Integrity in Action: Whistleblower or Traitor: The Role of HR in Making the Call This case discusses the ethical dilemma created by the Edward Snowden case. Snowden revealed security practices being used by the US government to monitor telephone interactions between individuals (US citizens as well as potential terrorists) in order to determine social networks of possible terrorists. Some people call Snowden a traitor, others call him a whistleblower. The question is which trust is more important – the trust between employer and employee, or the trust between employee and the larger society. Discussion Question 1. Imagine that HR professionals were able to accurately predict who would become a whistleblower. Would firms be motivated to screen out such individuals from being hired, and if so, would this be an ethical practice from the view of the larger society? Answer: Students responses here will most likely be varied and the debate possibly heated. This is an issue that has sparked tremendous levels of passion among people on both sides of the fence and has no answer that has an absolute solution. Tread lightly when discussing this case! If HR professionals could predict who would become a whistleblower, firms might be tempted to screen out such individuals to avoid potential issues. This could be driven by a desire to prevent disruptions, legal risks, and reputational damage. Ethically, excluding potential whistleblowers could be problematic: 1. Inhibiting Integrity: It undermines the principle of integrity, as whistleblowers play a crucial role in exposing unethical practices and protecting public interest. 2. Promoting Unethical Behavior: Screening out whistleblowers might encourage a culture of secrecy and complacency within organizations. 3. Legal and Social Implications: Such practices could be considered discriminatory and undermine legal protections for whistleblowers, which are designed to ensure transparency and accountability. Overall, while firms might see immediate benefits, the ethical and societal implications of such screening could be damaging, promoting a culture that prioritizes self-interest over ethical standards. 2. Physical Job Withdrawal a. A dissatisfied worker may be able to solve his or her problem by leaving the job. This could take the form of an internal transfer. b. If the source of dissatisfaction relates to organization wide poli-cies, organizational turnover is likely. c. In a recent survey, on average, companies spend 15 percent of their payroll costs to make up for absent workers. 3. Psychological Withdrawal—Employees that are unable to change their situation or physically remove themselves from the situation may "psychologically disengage" themselves from their jobs. a. If the primary dissatisfaction has to do with the job itself, the employee may display a very low level of job involvement. Job involvement is the degree to which people identify themselves with their jobs. b. If the dissatisfaction is with the employer as a whole, the employee may display a low level of organizational commit¬ment. Organizational commitment is the degree to which an employee identifies with the organization and is willing to put forth effort on its behalf. Individuals who have low organiza¬tional commitment are often just waiting for the first good opportu¬nity to quit their jobs. B. Job Satisfaction and Job Withdrawal 1. Job satisfaction is a pleasurable feeling that results from the perception that one's job fulfills or allows for the fulfillment of one's important job values. 2. Three important aspects of job satisfaction are values, perceptions, and importance. a. Job satisfaction is a function of values. b. Different employees have different views of which values are important, and this is critical in determining the nature and degree of their job satisfaction. c. An individual’s perception may not be a completely accurate reflection of reality, and different people may view the same situation differently. 3. Frame of Reference is a standard point that serves as a comparison for other points and thus provides meaning. Evidence-Based HR Recent survey evidence indicates that, although an employee’s own level of job satisfaction in an important predictor of turnover, what the employees around a person think and feel can also influence their decision to leave. This evidence indicates that it is important for employers to have accurate knowledge of the job satisfaction levels associated with different units of their organization Exercise Facilitate a class discussion where students recall times in their own employment (and this could certainly include part time and seasonal employment) when they thought about leaving their job and the reasons for it. Also have them discuss their level of job satisfaction with that job during that period of time. Ask them to react to the results of the study highlighted in this vignette, and whether or not how people around them felt had an impact on their thoughts of or intentions to leave their employer. C. Sources of Job Dissatisfaction—Many aspects of people and organizations can cause dissatisfaction among employees. 1. Unsafe Working Conditions a. Each employee has a right to safe working conditions under the Occupational Safety and Health Act of 1970 (OSHA). b. Financial bonuses to attaining specific safety related goals, in the long run, pay for themselves. 2. Personal Disposition—Since dissatisfaction is an emotion that ulti¬mately reside within the person, it is not surprising that many who have studied these outcomes have focused on individual differences. a. Negative affectivity is a term used to describe a dispositional dimension that reflects pervasive individual differences in satisfaction with any and all aspects of life. b. Employees high in negative affectivity report higher levels of aversive mood states, including anger, contempt, disgust, guilt, fear, and nervousness across all contexts. c. People who are high in negative affectivity tend to focus exten¬sively on the negative aspects of themselves and others and may be relatively dissatisfied regardless of what steps the organiza¬tion or the manager takes. d. Research has shown that negative affectivity in early adoles¬cence is predictive of overall job dissatisfaction in adulthood. Also, research on identical twins who were raised apart suggests that there may be a genetic component. Thus, there is evidence that these people may be relatively dissatisfied regardless of what steps the organization takes. e. Core self-evaluations are basic positive or negative bottom-line opinions that individuals hold about themselves. 1. Positive core evaluation—person’s self-image on a number of more specific traits a. Includes: high self-esteem, high self-efficiency, internal locus of control, and emotional stability 2. Negative core evaluation—person’s tendency to attribute dissatisfying features of their lives or work to the acts of other people, who they blame for all their problems. a. These people are less likely to work toward change, instead either doing nothing or acting aggressively toward those they blame for their misfortunes. 3. Tasks and Roles a. Three primary aspects of tasks affect job satisfaction: the complexity of the task, the degree of physical strain and exertion on the job, the ancient of flexibility in where and when the work is done, and the value the employee puts on the task. 1. There is a strong, positive relationship between task complexity and job satisfaction. 2. Boredom generated by simple, repetitive jobs and boredom generated by jobs that monitor critical events that rarely occur can lead to a lack of concentration. b. Job rotation is the process of systematically moving a single indi¬vidual from one job to another over the course of time Competing Through Globalization Riot Puts Spotlight on Working Conditions A recent riot at Chinese based Han Hoi’s (a.k.a. Foxconn) factory that started with 2 workers having an altercation eventually involved over 2,000 employees and 5,000 paramilitary forces. These types of incidents are increasing in frequency in China – and this is not the first public image black-eye for Foxconn. This is the same company who installed nets to the sides of their buildings to catch workers who were jumping off of top floors to commit suicide due to poor working conditions. Discussion Question 1. In what ways are the factors that cause job dissatisfaction universal across cultures, and what does this imply for countries that seek competitive advantage by exploiting workers? Answer: There are a number of directions that this question can go. Primarily it appears that in this case, the issue of boring and tedious work combined with long hours and low wages spell for extreme dissatisfaction among workers. The fact that these incidents are happening more and more frequently appear to indicate that the model of exporting such work to foreign countries where there is little or no regulation is becoming outdated and will need to be changed in the very near future. Universal Factors Causing Job Dissatisfaction: • Poor Working Conditions: Unsafe or unhealthy work environments are a universal cause of dissatisfaction. • Low Wages: Insufficient compensation relative to the cost of living affects workers globally. • Lack of Job Security: Insecure employment can lead to dissatisfaction across different cultures. • Unfair Treatment: Discrimination and lack of respect are universally negative factors. Implications for Exploiting Workers: Countries exploiting workers may face increasing unrest and reputational damage, highlighting the need for ethical practices to avoid long-term issues. 2. What does this say about global companies like Apple that outsource work to such countries? Answer: Answers here will also very. These events spell big problems for this business model. Companies will need to begin exploring other options as well as other business models in order to address their needs for assembly work at a low cost. Global Companies and Outsourcing: • Ethical Responsibility: Companies like Apple must ensure that their outsourcing partners adhere to fair labor practices. • Reputational Risk: Outsourcing to countries with poor working conditions can damage a company’s reputation. • Competitive Advantage: While cost savings are a factor, companies must balance this with ethical considerations to maintain sustainable competitive advantage. c. Prosocial motivation is the degree to which people feel energized to do their jobs because it helps other people. 4. Supervisors and co-workers—The two primary sets of people in an organization who affect job satisfaction are co workers and supervisors. a. A person may be satisfied with his or her supervisor and co¬workers for one of two reasons: 1) The person may have many of the same values, attitudes, and philosophies that the co workers and supervisors have. 2) The person may be satisfied with his or her supervisor and co workers because they provide social support, the degree to which the person is surrounded by other people who are sympathetic and caring. b. Because of the powerful role played by supervision and other more experienced workers in items of supporting the organization’s culture, some organizations are going to great lengths to develop the mentoring skills of their managers and other highly experienced workers. Competing Through Sustainability Flextime: Has Its Time Come and Gone? Flextime programs appear to be waning in their popularity for many companies today. The first major corporation to publicly do away with the program was Yahoo, with Best Buy following shortly behind. Many companies will believe in the cost savings and benefits derived from such programs. Discussion Question 1. Discuss how the nature of a company’s workers and the nature of the work itself might influence when flextime is a good policy and when it is a poor strategy. Why might a “one-size-fits all policy” for flextime be unrealistic? Answer: The discussion here will be varied as student views of these programs differ. One big issue here is how to measure employee contributions – with flextime programs, managers must use measures of outcomes and results without the benefit of face time interactions. Many students will think this is a great thing, while others will not like it. Influence of Workers and Work Nature on Flextime: • Nature of Workers: Flextime suits roles requiring high individual autonomy and varied personal schedules, benefiting employees who value work-life balance. It may be less effective for roles needing constant team coordination or strict adherence to fixed hours. • Nature of Work: Jobs with project-based or results-oriented tasks can benefit from flextime, as productivity is often measured by output rather than hours worked. Conversely, jobs requiring real-time collaboration or customer service may need consistent hours to maintain operational efficiency. Why “One-Size-Fits-All” is Unrealistic: • Diverse Needs: Employees have varying needs and preferences for work hours, making a uniform policy impractical. • Work Variability: Different roles and departments have unique operational requirements, necessitating tailored flextime arrangements to optimize effectiveness and maintain productivity. 5. Pay and Benefits—For many people, pay is a reflection of self-worth, so pay satisfaction takes on critical significance when it comes to retention. a. Satisfaction with benefits is another important dimension of overall pay satisfaction. b. In order to make costs better reflect revenues, organizations are increasingly adopting variable pay schemes that reward employees for specific accomplishments related to either individual or organizational performance. c. Competing Through Technology Didn’t Your Boss Used to Be a Vacuum Cleaner? This case discusses the use of robots to bolster communications quality between employees using new technology to communicate and meet. These robots, using GPS technology to navigate, might include such features as a video monitor, camera and microphone that can be moved around to talk “face to face” with people in the robot’s proximity. Discussion Question 1. Why would the use of telepresence robots increase the job satisfaction and performance of some workers, but reduce job satisfaction and performance for other workers? Answer: Depending on their view of technology, students will respond differently to this questions. While the robot does add a dimension to what might otherwise be a text-only based communication, it does not replicate a true face-to-face meeting. As such, it will enhance job satisfaction for some employee’s desiring more interpersonal interaction with their supervisors, while it may reduce it for others who do not perceive a discussion with a computer monitor as being a face-to-face discussion. Impact on Job Satisfaction and Performance: • Increase Satisfaction: Telepresence robots can enhance job satisfaction for remote workers or those in different locations by enabling face-to-face interactions and reducing feelings of isolation. • Decrease Satisfaction: For on-site employees, these robots might feel intrusive or create a sense of surveillance, potentially reducing job satisfaction and performance due to perceived privacy invasion or disruption. 2. What types of people and what types of tasks would be best suited for the use of telepresence robots? Answer: Here again, student’s view of this issue will likely be different depending on a number of factors. However, overall these types of technology might be useful for routine types of meetings where intricate detail and collaborative creativity are not needed. Also, they would likely not be useful in organizations that rely a strong sense of community among organizational members. Suitability for Telepresence Robots: • Types of People: Remote workers, telecommuters, and employees in different geographical locations benefit from telepresence robots as they enhance connectivity and communication. • Types of Tasks: Tasks requiring regular virtual meetings, collaborative projects, and client interactions are well-suited for telepresence robots, as they facilitate real-time, remote engagement and collaboration. D. Measuring and Monitoring Job Satisfaction 1. Most attempts to measure job satisfaction rely on workers' self-¬reports. For example, the Job Descriptive Index (JDI) empha¬sizes various facets of satisfaction: pay, the work itself, supervision, co workers, and promotions (text Table 10.5). E. Survey Feedback Interventions 1. Reasons for routinely surveying employee attitudes include the following: a. It allows the company to monitor trends over time. b. It provides a means of empirically assessing the impact of changes in policy. c. When these surveys are incorporate standardized scales, they often allow the company to compare itself with others in the same industry along these dimensions. d. Any strategic retention policy also has to consider surveying people who are about to become ex-employees. 2. It allows the company to monitor trends over time and thus prevent problems in the area of voluntary turnover before they happen (text Figure 10.4). 3. Engaging in an ongoing program of employee satisfaction provides a means of empirically assessing the impact of changes in policy (text Figure 10.4). 4. When these surveys incorporate standardized scales, they often allow the company to compare itself with others in the same industry along these dimensions (Figure 10.5). 5. A systematic survey program also allows the company to check for differences between units and hence benchmark “best practices” that might be generalized across units (Figure 10.6). A Look Back In the story that opened this chapter, we saw how churn rates, that is, the rate at which people were moving from one job to another, stalled within the last few years, but now seem to be poised to make a comeback. Although healthy churn rates are good for the economy as a whole, for individual organizations, the key factor influencing competitiveness is who is leaving and who is staying. Organizations need to have policies in place that make it easy and advantageous for low performers to leave (involuntary turnover), but make it difficult and costly for high performers to leave (voluntary turnover). Managing the “flow” of employees thus becomes a critical source of competitive advantage and is often the difference between survival and bankruptcy. Questions 1. In what ways would an increase in churn rates make it easier for firms to manage involuntary turnover, and what might firms do to take advantage of changing churn rates? Answer: Levels of student creativity will cause answers to be varied here. One potential answer would be that if an organization is careful to pay attention to the levels of churn, they might use that information to inform their employees of the levels of competition for jobs in the market. As churn increases, there will potentially be more and more employees seeking employment – in theory making it harder to obtain a new job. An increase in churn rates can ease the management of involuntary turnover in several ways: 1. Increased Market Availability: Higher churn rates mean a larger pool of potential candidates, making it easier for firms to replace low performers with new talent. 2. Benchmarking: Firms can use industry churn rates to set competitive standards for involuntary turnover, ensuring they remain attractive to high performers. 3. Policy Adjustments: Companies can adjust their policies to streamline the exit process for low performers, reducing the impact on team dynamics and productivity. 4. Enhanced Recruitment: Firms can leverage higher churn rates to improve recruitment strategies, focusing on attracting skilled candidates who fit their organizational culture. Taking Advantage: 1. Strategic Hiring: Emphasize hiring practices that align with the firm’s needs and long-term goals, using churn rates to attract top talent. 2. Retention Strategies: Implement strong retention programs and incentives for high performers to counterbalance the ease of managing involuntary turnover. 2. In what ways would an increase in turnover make it more difficult for firms to manage voluntary turnover, and what might firms do to avoid being hurt by changing churn rates?? Answer: An increase in churn may cause a ripple effect among “surviving” employees. As we read about earlier in the “Evidence-Based HR” feature, how the people around you feel may impact your intentions to turn over. As such, it is important for organizations to make sure their employees are satisfied! 3. What role can employee attitude surveys play in maintaining a loyal and engaged workforce? What are some of the challenges associated with getting accurate and reliable information from employee surveys, and how can a survey process “backfire” in terms of harming, rather than helping, a firm’s efforts? Answer: If an employer is doing a good job of keeping their employees satisfied and that level of satisfaction is reflected in survey evidence, sharing that evidence may cause that satisfaction to become “contagious” – as was just discussed from the “Evidence-Based HR” feature. It is difficult to obtain accurate and reliable information due to the changing nature of satisfaction as well as self-report biases. Chapter Vocabulary These terms are defined in the "Extended Chapter Outline" section. Involuntary turnover Voluntary turnover Employment-at-will doctrine Outcome fairness Procedural justice Interactional justice Alternative dispute resolution (ADR) Employee assistance programs (EAP) Outplacement counseling Progression of withdrawal Whistle-blowing Job involvement Organizational commitment Job satisfaction Frame of reference Negative affectivity Job rotation Prosocial motivation Discussion Questions 1. The discipline and discharge procedures described in this chapter are systematic but rather slow. In your opinion, are there some offenses that should lead to immediate dismissal? If so, how would you justify this to a court if you were sued for wrongful discharge? Answer: Offenses that are violent in nature or that endanger other members of the work force should most likely lead to immediate discharge. Additionally, large scale thefts or significant criminal activity might be treated harshly. To justify immediate dismissal to a court, the magnitude of the offense should be carefully described, and evidence should be presented that shows the guilt of the employee. Additionally, if the offense endangered other employees, this should be shown to the court. 2. Organizational turnover is generally considered a negative outcome, and many organizations spend a great deal of time and money trying to reduce it. What situations would indicate that an increase in turnover might be just what an organization needs? Given the difficulty of terminating employees, what organizational policies might promote the retention of high-performing workers but promote voluntary turnover among low performers? Answer: Situations in which an increase in turnover might be just what an organization needs are situations where "new blood" can bring in new ideas and enthusiasm lacking in current employees. One organizational policy that might promote the retention of high ¬performing workers and promote voluntary turnover among low performers is a policy that rewards only high performers. Low performers would tend to leave because they would not get rewarded, and high performers would stay because they were getting rewarded. 3. Three popular interventions for enhancing worker satisfaction are job enrichment, job rotation, and role analysis. What are the critical differences between these interventions, and under what conditions might one be preferable to the others? Answer: Job enrichment involves redesigning the job so it is more complex and has more responsibility, whereas job rotation simply rotates employees to different jobs, usually at the same level of responsibility. Role analysis looks at the role expectation for a particular job by involving the jobholder as well as supervisors, co workers, subordinates, and so on. With role analysis, the job does not change, but the job changes with job enrichment. With job rotation, other jobs are involved. Job enrichment is more for situations in which employees may desire more responsibility or complexity in their jobs. Job rotation, which can be used for cross training, also increases work complexity. Role analysis is mainly for clarifying what the expectations are for a particular job. 4. If off the job stress and dissatisfaction begin to spill over and create on the job problems, what are the rights and responsibilities of the human resource manager in helping the employee overcome these problems? Are intrusions into such areas an invasion of privacy, a benevolent and altruistic employer practice, or simply a prudent financial step taken to protect the firm's investment? Answer: Student answers may vary. Some students may think that managers' helping the employee with personal problems is inappropriate, whereas other students might think it is a humane thing to do, and still others may think that it makes good business sense. HR Manager’s Rights and Responsibilities: 1. Support and Resources: HR managers should provide support and resources to help employees manage stress and dissatisfaction, such as access to counseling or employee assistance programs (EAPs). 2. Confidentiality: They must handle sensitive information with confidentiality to respect employee privacy while addressing on-the-job issues related to off-the-job stress. 3. Intervention: HR can intervene to offer solutions or accommodations if off-the-job stress impacts work performance, while ensuring the intervention is constructive and supportive. Nature of Intervention: 1. Privacy vs. Support: While interventions might be seen as intrusions, they are often necessary to address performance issues and support employee well-being. 2. Benevolent Practice: Providing assistance can be viewed as a benevolent and altruistic practice, showing care for employees' holistic well-being. 3. Prudent Step: It is also a prudent financial step, as addressing these issues can protect the firm’s investment in its employees and reduce turnover and productivity losses. 5. Discuss the advantages of using published, standardized measures in employee attitude surveys. Do employers ever need to develop their own measures for such surveys? Where would one turn to learn about how to do this? Answer: Advantages of using published, standardized measures in employee attitude surveys is that they are readily available and quick to assess and use, they allow for possible comparisons with other companies, they have often been tested for validity, and so forth. Employers need to develop their own measures if they want to measure some aspect of work that is specific to their organization, such as a new health plan. To develop your own attitude survey, you could review standardized surveys that are on the market and also work with someone who has developed these surveys before. Self-Assessment Exercise Refer to the text for the self-assessment exercise. Exercising Strategy: Safety Lapses Sink Deep Water Horizon This vignette outlines the case of BP and the Deep Water Horizon tragedy that occurred in 2010 which resulted in deaths of 11 people, 17 injuries and an environmental disaster that decimated the eco-system in the Gulf of Mexico and multiple billions of dollars of damage. Much of the blame for this tragedy can be traced back to human decisions concerning staffing levels, lay-offs, coordination issues, and apparently greed. Questions 1. In what way is trying to reduce costs by taking measures that threaten safety a very short-sighted policy? Answer: The discussion will likely point to the fact that this case is a great illustration of the long-term ramifications of sacrificing safety for profits. While profits are great, they truly are fleeting and very short-sighted due to the fact that the long-term impacts of safety decisions being made based on increasing profits through cutting costs is not a good bet. Short-Sighted Policy on Safety: • Increased Risk: Cutting safety measures to reduce costs can lead to higher risk of accidents and incidents, potentially resulting in severe financial and reputational damage. • Long-Term Costs: Short-term savings may be outweighed by long-term costs from legal liabilities, fines, and increased insurance premiums. • Employee Morale: Compromising safety can harm employee morale and trust, leading to higher turnover and reduced productivity. 2. How do collaborations between firms like BP and Transocean create unique safety-related challenges? Answer: Situations such as these, where there is the potential for tremendously big environmental disasters require laser-precision in terms of coordinating safety programs and efforts. In addition to this, these are extremely large organizations with multiple layers of management and bureaucracy which also hinders the accuracy of communication and coordination. However, projects of this scope and size require organizations large enough to manage the financial requirements necessary to undertake them. Safety-Related Challenges in Collaborations: • Different Standards: Collaborating firms like BP and Transocean may have different safety standards and protocols, leading to inconsistencies in safety practices. • Coordination Issues: Complex coordination between firms can lead to communication breakdowns and lapses in safety procedures. 3. Why does the relationship between government regulators like the MMS and companies like BP need to be closely monitored and who should be responsible for this kind of monitoring? Answer: As was also illustrated in this case, fraternizing between those monitoring and those being monitored can muddy the waters in terms of compliance with safety standards. It is critical for these relationships to remain clinical and free of interference from friendship and politics (not partisan politics, organizational politics). People monitoring these projects should be individuals who are free from intermingled relationships or the potential for bias due to friendships or other social interactions. Monitoring Regulatory Relationships: • Conflict of Interest: The relationship between regulators and companies needs oversight to prevent conflicts of interest and ensure unbiased enforcement of regulations. • Accountability: Independent bodies or watchdog organizations should be responsible for monitoring these relationships to maintain regulatory integrity and protect public safety. Managing People: Heading for the Exit: Flight Attendant Becomes Hero Steven Slater was a flight attendant who, after asking a passenger who had left her seat too soon after landing, was verbally attacked by the passenger who also hit him over the head with her bag. Slater returned to the intercom, let loose with an obscenity-laden invective directed toward the woman, and exited down the emergency exit chute. Slater became somewhat of a folk hero as a result. His frustration mirrored the mood of many American workers who were fed up with their current job and looking for the first opportunity to quit. Questions 1. What aspects of a flight attendants’ job are conducive to stress, and what other jobs share similar characteristics? Answer: Answers to this question will likely vary but should point to the fact that flights attendants are responsible for the safety and behaviors or many passengers, all within the confines of strict Federal regulations and having to treat passengers as guests. It would seem that jobs in other hospitality fields (hotels and restaurants) as well as law enforcement jobs might also have similar types of stress levels. Aspects Conducive to Stress for Flight Attendants: 1. High-Pressure Environment: Flight attendants often deal with tight schedules, high customer expectations, and potential emergencies, leading to high stress levels. 2. Irregular Hours: Long and irregular hours can disrupt personal life and contribute to burnout. 3. Customer Interactions: Handling difficult or unruly passengers can create significant stress. Similar Jobs: • Emergency Responders: Police, fire fighters, and paramedics face high-pressure, high-stress environments. • Healthcare Workers: Surgeons and emergency room staff experience similar stress due to high stakes and long hours. 2. Why do you think the actions of this one worker resonated so strongly with wider public opinion and what does this suggest about the nature of jobs in the U.S. economy? Answer: Steve Slater’s frustration mirrored the mood of many American workers who were fed up with their current job and looking for the first opportunity to quit. In 2010, voluntary job separation surpassed involuntary separation for the first time since 2008. This seems to indicate that there are jobs available for those who are looking to change employers. 3. What are some steps employers can take to help reduce and manage employee stress in jobs like these? Answer: Answers will almost certainly vary here. Employers can attempt to keep employees satisfied through any of a number of means – good pay and benefits, offering flexibility in the job, perhaps even expanding employee assistance programs to help reduce and relieve stress. However, the nature of some jobs just simply is not conducive to less stress. Steps to Reduce and Manage Stress: 1. Support Programs: Implement employee assistance programs (EAPs) offering counseling and support services. 2. Training: Provide training in stress management and conflict resolution. 3. Work-Life Balance: Encourage schedules that promote work-life balance and provide adequate rest periods. 4. Recognition: Offer regular recognition and support to acknowledge and mitigate stress. HR in Small Business: Learning to Show Appreciation at Datotel Datotel’s founder, David Brown, quickly discovered that employees want more in terms of recognition than an email “thank you” and a gift card. Brown devised an idea that had managers discussing the accomplishments of their employees at manager meetings and then someone other than the employee’s direct supervisor acknowledging the employee’s effort in person. Brown also committed to write notes to thank the employees, and mails some of them directly to the employee’s home. These types of activities help Datotel not only in retaining their best talent, but in recruiting the best talent in the marketplace as well. Questions 1. Based on the information given, which sources of job satisfaction has Datotel addressed? What other sources might the company address, and how? Answer: Job satisfaction is a function of one’s values, and a properly socialized employee will have value congruence with their organization. It appears that by addressing the company’s values of fun, teamwork, and “improving the community in which we work” through their employee recognition program has contributed significantly to employee satisfaction. 2. Suggest several measures Datotel could use to evaluate the success of its employee retention efforts. Be sure these are practical for a company of a few dozen employees. Answer: Student answers should vary here based on their creativity. However, they should recognize that whatever program they recommend, it should compare employee turnover rates post program implementation with the rates pre implementation. They may also recognize that employee exit interviews can also help to determine the reasons employees are leaving. Measures to Evaluate Retention Efforts: 1. Employee Surveys: Conduct regular surveys to gauge employee satisfaction and the effectiveness of recognition programs. 2. Turnover Rates: Monitor turnover rates and analyze exit interviews to assess if recognition efforts are impacting retention. 3. Engagement Metrics: Track engagement levels through participation in company events and feedback on recognition activities. 4. Referral Rates: Measure the number of employee referrals for new hires as an indicator of employees’ satisfaction and loyalty. 3. In a company as small as Datotel, losing even one employee can present real difficulties. Suppose one of Datotel’s managers begins to have performance problems and seems unwilling or unable to improve. Suggest how you, as an HR consultant, could help David Brown resolve this problem in a way that is fair to everyone involved and that keeps the company moving forward. Answer: Again, student’s views of this issue will likely vary. However, it is important to recognize that low job satisfaction, disciplinary problems and performance problems when left unchecked can spell disaster for other employees’ perceptions of justice. Addressing Performance Issues: 1. Performance Review: Conduct a thorough performance review to identify specific issues and provide clear, actionable feedback. 2. Development Plan: Create a performance improvement plan with measurable goals, support, and timelines for improvement. 3. Coaching: Offer coaching or mentoring to address performance gaps and develop necessary skills. 4. Alternative Roles: If improvement isn’t feasible, consider redeploying the manager to a different role better suited to their skills. 5. Document and Communicate: Document all steps taken and communicate transparently with the manager to ensure fairness and clarity. Additional Activities Twitter Focus Datotel is a St. Louis company that provides IT services and storage for its client companies. Founder David Brown believes in making sure employees know how much the company appreciates them, even as everyone scrambles to keep up with the demands of this expanding small business. When a manager notes that an employee has done something extraordinary, Brown asks one of the other managers—in addition to the employee’s direct supervisor—to thank the employee in person. The company also conducts business based on its core values: passion, integrity, fun, teamwork, “superior business value,” and “improving the community in which we work.” Question: Have you ever been personally thanked by your employer? Answer: Being thanked directly by a manager or receiving a handwritten note can significantly boost morale and job satisfaction. Personal acknowledgment, especially in a way that highlights specific achievements, often makes employees feel valued and appreciated. This approach aligns with practices like those at Datotel, where personalized recognition is used to reinforce core values and strengthen employee engagement. For many, such recognition helps foster a positive work environment and can improve retention and motivation. Manager’s Hot Seat Exercise: Whistleblowing: Code Red or Red Ink? -Please refer to the Asset Gallery on the OLC for Hot Seat videos and notes. I. Introduction This scenario depicts a perceived ethical dilemma for an employee who has discovered information about a client that could be putting human lives in danger. His management wants to delay any action on the matter until future investor funding is secured. This scenario may be used for instructors teaching Management because it presents a challenging problem for a middle manager in an ethical bind and caught between two opposing points of view from the levels above and below her. II. Learning Objectives 1. To assess student’ understanding of the role of the middle manager when faced with difficult ethical dilemmas. 2. To analyze Whistleblower statutes and understand their purpose and value for employees and managers. III. Scenario Description: Overview: An employee at a hospital management company files a report with his supervisor on patient injury and death caused by staff errors. There is an investor meeting scheduled for one month following receipt of the report and our manager has been told by her superiors not to release the report until after that meeting. The employee who created the report disagrees with this decision, puts up a fight, and threatens to leak the report directly to the media. Profile: •Susan Novrotsky is a Senior Account Executive managing up to 15 accounts per quarter and supervising a team of six people. Susan’s main functions include new account development, client management, and managing the planning processes for hospital restructuring. •Daniel Yoshi has been working with Woodland Management Services for five years within Susan’s department. His functions include research and analysis of hospital structure, general competency, cost-efficiency, human resource assessment, and liability issues. Daniel’s research reports are used as the basis for the Woodland’s restructuring plan and capital allocation. References: The references included in the DVD are: •Concepts in Whistleblowing (PPT 5-5) •The Whistleblowers’ Protection Act (PPT 5-7) •Whistleblower Provisions of Sarbanes-Oxley (PPT 5-8 to 5-10) •United States Protection Policies (PPT 5-11) Back History: Novrosky and Yoshi have been working at Woodland for over five years. Novrosky is managing a new account for Hillshire Hospital. The current objectives are to analyze the efficiency of the staff and the organization as a whole and generate a restructuring plan. Yoshi was directed to research these issues and generate a status report. Yoshi sent Novrosky a progress email with his findings, highlighting his concern over the exorbitant number of accidents, injuries and unnecessary deaths that have occurred at the hospital over the past four years. The numbers greatly exceed the national rate of accidental harm to patients. Yoshi strongly believes that immediate action is necessary. [Artifact 1 – Yoshi email] Novrosky forwards the email to her supervisor, Walsh. Novrosky has never come across such severe findings and is unsure how to proceed. [Artifact 2- Novrosky email] Walsh responds via email, instructing Novrosky and Yoshi to hold off on sharing the research. Hillshire Hospital has an investor meeting in exactly one month, and if the meeting goes poorly, which it would should this report circulate, there would be no funding for a restructuring project. Walsh agrees that this is a serious issue, but insists it would be foolish and more detrimental to act on it immediately. [Artifact3- president email] Novrosky leaves a voicemail with Yoshi relaying Walsh’s instruction –Artifact 4 –Novrosky’s voicemail recording] Scene Set-up: Yoshi is agitated by the voicemail and barges into Novrosky’s office. Scene Location: Novrosky’s Office, Woodland Management Services; lunch time The Meeting - Summary: Daniel Yoshi approaches Susan in her office clearly agitated about the email and voicemails he received indicating that no action will be taken on his research findings until after the investor’s meeting in one month. Susan tries to convince Daniel that no action should be taken at this point because that would prevent further funding that is required to restructure the hospital. Daniel contends that taking action now would save lives. Susan reminds Daniel of what the business goals are and to stay focused on that. Daniel’s conscience will not let him accept Susan’s position and he threatens to go to the media if Woodland Management Services does not notify the public and shareholders of Hillshire Hospital’s problem. The scenario ends with Daniel’s ultimatum. Afterthoughts – Summary: Susan believes that Daniel is so emotionally involved with his work that he can’t see the bigger picture and what consequences his actions would really have. She indicates that Daniel needs to feel valued and that his work is important so that he doesn’t go to the media. Although Susan admits she can’t prevent Daniel from going to the media, she let others in the organization know about his intentions. She feels she needs to balance her obligation to Daniel to reach his career goals with the needs of the organization which is to get the funding. Dossier: The specific artifacts included in the DVD are: 1. Yoshi’s email to Novrosky detailing the research findings, and calling for immediate action. 2. Novrosky’s email to Walsh forwarding Yoshi’s email, and asking for advice on managing the situation. 3. Walsh’s email to Novrosky replying with instructions to hold back the info. 4. Novrosky’s voicemail to Yoshi instructing him to hold the report until after the investor meeting. IV. Discussion Questions: The References and related Discussion Questions may be found in PowerPoint slides 5-1 to 5-11 on the instructor’s side of the text’s Website. Learning Objective #1: To assess student’ understanding of the role of the middle manager when faced with difficult ethical dilemmas 1. What competing organizational goals are present in this scenario? Answer: The organization clearly has a goal of receiving funding so it can continue operations and ultimately reach its goal of restructuring the hospital. Another goal is to research hospitals in order to have quality information on which to make decisions about its management. In this scenario, the research called for an action in conflict with receiving funding. 2. What could the organization do to guide managers and employees in handling situations like this one? Answer: The organization should have clearly defined mission and vision statements. In addition, well-communicated values would serve to guide employee behavior when dealing with situations such as these. Missions, visions, and values are an important part of an organization’s culture and can be used during conversations among employees regarding difficult decisions.  1. Susan’s strategy seems to be to: A. Minimize problem B. Re-assign research C. Commiserate Susan seems to minimize the problem by suggesting that Daniel’s research is incomplete. She suggests that Daniel research the situation further as a way to stall Daniel from taking action before the investor meeting. 3. Daniel was clearly not satisfied with Susan’s explanation. What could Susan have done differently to convince Daniel to wait? Answer: Susan should probably have used a strategy based on reasons that Daniel would appreciate and understand. For example, she could have pointed to aspects of the research that do not show a clear link between his findings and accidental deaths. She could have provided alternative explanations and provided a plan for testing those before jumping to conclusions. While Daniel was emotional and passionate about his work, his stated repeatedly that his primary concern was the health of the hospital patients. Susan seemed to think Daniel was upset because he didn’t feel his work was valued. Therefore, Susan didn’t address Daniel’s exact concern and how her plan would also serve to protect patients. She seemed to be very focused on the business objective of making money rather than the endangerment of people in the hospital. Thus, not correctly interpreting Daniel’s concern caused her to use an ineffective influence strategy.  2. Primary reason for communication failure: A. Danny’s not listening B. Susan’s not listening C. A misunderstanding Student’s answers will vary. Discussion could focus on behaviors that indicated where active listening broke down. Susan did not seem to address Daniel’s primary concern directly (see answer to #3 above).  3. What is Susan’s key reason for “holding off’? A. Incomplete research B. Funding at risk C. No need for disclosure Susan’s motives are unclear. From her email, she initially seemed to agree with Daniel’s findings and interpretation. She says she met with Walsh and then supported his position with Daniel. It’s difficult to ascertain whether she truly believes the research is incomplete or whether she is more motivated by the fear of lack of funding. To convince Daniel to wait, Susan could have: 1. Provided Clear Information: Offered a detailed and transparent explanation of the reasons for the delay or decision, including any steps being taken to address the issue. 2. Acknowledged Concerns: Actively listened to Daniel’s concerns and validated his feelings to show empathy and understanding. 3. Offered Alternatives: Suggested alternative solutions or interim measures to address Daniel’s immediate needs while waiting for the resolution. 4. Set Expectations: Clearly communicated a realistic timeline for when Daniel could expect a resolution and provided regular updates on progress. 5. Demonstrated Commitment: Showed commitment to resolving the issue promptly and efficiently to build trust and confidence in the process. Learning Objective #2: To analyze Whistleblower statutes and understand their purpose and value for employees and managers. 1. If Daniel went to authorities with his information, would he be making a “good faith allegation”? Refer to “Concepts in Whistleblowing” (PPT 5-5) for your answer. Answer: Yes, Assuming his research is thorough and accurate. Good Faith Allegation in Whistleblowing: According to the "Concepts in Whistleblowing" (PPT 5-5), a "good faith allegation" refers to a whistleblower's report made with honest intent, based on a genuine belief that wrongdoing has occurred, without malicious intent or personal gain. If Daniel went to authorities with his information: • Good Faith: If Daniel genuinely believes that wrongdoing has occurred and his intention is to address the issue rather than to harm individuals or seek personal benefit, then his action would be considered a "good faith allegation." • Criteria: The key factors are that Daniel must act on a reasonable belief that misconduct or illegal activity is happening, and he must not be driven by personal grudges or a desire to cause harm. In summary, if Daniel meets these criteria, his action would indeed be a good faith allegation. 2. Susan states that there is nothing she could do to stop Daniel from “blowing the whistle.” Do you agree there is nothing she can do to stop Daniel? Why or why not? Answer: While she can’t physically restrain him or threaten him in any way, Susan could make an attempt at a compromise solution that would appease Daniel’s concerns and meet the needs of the organization.  4. Why does Susan focus on goals? A. Establish “big picture” B. Distract Daniel C. Outline Daniel’s job Susan focuses on goals because she is trying to get Daniel to see the bigger picture in that taking action now would actually be detrimental to his ultimate goal of saving lives. However, she doesn’t make that point very convincingly. 3. Susan does indicate that she would tell others in the organization of Daniel’s intentions to blow the whistle. What are the pro’s and con’s of this action? Answer: Pro’s - others should know that bad press or a public relations disaster could occur and be prepared for it. Con’s - someone could take an adverse action toward Daniel in retaliation for his intended or committed actions. He may be protected under the Whistleblowers’ Protection Act and could file suit which would cause even more bad press.  5. Susan’s response should be: A. Acquiesce to demand B. Fire Daniel C. Call Walsh Susan should probably call Walsh to discuss the issue further. She and Walsh may be able to come up with a compromise action that would meet both Daniel’s and the organization’s needs. 4. Given what you saw in this scenario, if an adverse action was taken toward Daniel in retaliation, would Daniel be protected under the Whistleblowers’ Protection Act (see PPT 5-7)? Why or why not? Answer: It would be illegal for the company to take an adverse action against Daniel because he alleges a problem that could affect one’ health and safety. However, it is unclear whether he is protected by this law. While he did report this to his supervisor he wants action taken immediately which may or may not be perceived as a reasonable amount of time. Further, the organization does seem to want to correct the problem, they are just concerned that taking immediate action now will prevent real improvements in the future due to lack of funding. Teaching Suggestions There are many interesting topics related to job satisfaction and job with¬drawal. Some of these topics are suggested for class debate, discussion, and brainstorming. Several articles that are suggested provide additional information on the specific topics. Also, a case is given that can be used as a role-play dealing with absenteeism. 1. The results of several studies examining the attitudes of workers are included in the following article. Students could be assigned to read the article and comment on their agreement or disagreement with the results. "What Do Workers Want?” INC, November 1992' pp. 101 102. Some of the other results reported in the article are as follows: How important is each of the following characteristics to you? How satisfied are you with it in your current job? Percent of Workers Who Ranked It as Said They Source: Gallup Poll, 1991. Which one of the following would most give you the feeling of success in your life? Answer: Source: The Chivas Regal Report on Working Americans, 1989. 2. "Stressed Out at work: Chin Up, You Can Blame It on the Boss." (Source: article in Star Tribune, October 12, 1992. written by Jill Hodges.) If you are stressed out at work, you may well have a lousy boss. Sure, you've known this all along, but now there is a study that shows it: Poor supervisors are one of the chief sources of workplace stress, according to a recent survey by St. Paul Fire and Marine Insurance Company, the nation's largest medical liability insurer. Friction with supervisors can lower productivity, diminish quality, and increase absenteeism, according to Stacey Kohler, the psychologist who supervised the survey of 215 companies. Of the employees who said they had a bad supervisor, 76 percent said co¬workers talk about leaving the company, 68 percent said they are tired during the workday, and 65 percent said their productivity could be improved. The survey revealed that one in three workers has neutral or negative feelings about his or her boss. The survey also showed that problems with supervisors are likely to carry over into employees' home lives, straining their relationships and driving them to substance abuse problems. The study showed that problems at work are more likely than personal problems to have a negative effect both at work and at home. The survey showed that employees are looking for a few basic qualities in a manager: someone who sets clear and reasonable goals, someone who is not overly critical, and someone who listens to employees and involves them in decisions that affect them. VIC Inc. of Bloomington, one of the companies that participated in the study, found that its 220 employees largely were satisfied with their managers. But half the employees at the semiconductor manufacturer indicated that their performance evaluations did not help them improve. How should performance evaluations be conducted in order to actually help employees improve? The performance evaluation process consists of measures of performance as well as the process of communication of performance information to employees. 3. There are several written stress tests that you could give to students. One test is known as the Glazer Stresscontrol Life Style Questionnaire, which helps students determine if they are Type A or Type B personalities. This test can be found in Business Week's Executive Health, (McGraw Hill, Inc., 1987). Another written test is called the Social Readjustment Rating Scale, which measures the amount of change in one's life and equates that to stress. This scale can be found in T. H. Holmes and R. H. Rahne, "The Social Readjustment Rating Scale," Journal of Psychosomatic Research ll, (1967) pp. 213 18. 4. One interesting article dealing with whistleblowing is "Blowing the Whistle without Paying the Piper," Business Week, June 3, 1991, pp. 138 139. Students could be asked to read this article and also find other articles on the topic and write a report on the topic. 5. One classroom activity is to have students list or brainstorm the characteristics that they want an employer to have. In other words, what makes a company a good place to work? To supplement this discussion compare the class's list with the six criteria (pay/benefits, opportunities, job security. pride in work/company, openness/fairness, and camaraderie/friendliness) listed in the article “The Work Place 100,” USA Weekend, January 22 24, 1993, pp. 4 6. This article also lists the 100 best companies to work for in America. 6. Do you have to be a workaholic to succeed in the business world? Students could debate this issue. One article that sheds some interesting ideas on the subject is "You Don't Have to Be a Workaholic, Fortune, August 9. 1993, pp. 65 69. 7. Humor is often suggested as a great stress reliever. Have students discuss and brainstorm how a company can use humor in the workplace and identify the issues/problems involved with humor in the workplace. An interesting article on the subject is "Building Fun in Your Organization" by David J. Abramis, Personnel Administrator, October 1989, pp. 68 72. 8. The following case can also be used as a role-play: The Absenteeism Problem Melissa has been an absenteeism problem ever since she was hired two years ago. She has been on probation twice and has been able to improve her attendance enough to get off probation, but the problems seem to be recur¬ring. As Melissa's supervisor, you are aware that Melissa has health prob¬lems, and she is a single parent with a young child that also has health problems. You believe her absences to be related to these health problems; however, co workers are complaining about having to cover for Melissa when she is out, and one customer has complained about not receiving information that Melissa was supposed to have sent last week. Melissa has just returned from being absent for five days due to a recurring illness. She has missed over 12 days in the last three months. You are getting pressure from your boss to terminate Melissa if her attendance does not dramatically improve. You have scheduled a meeting with Melissa for this afternoon. 9. Library Assignment: Have students report on the Job Absence and Turnover rate for U.S. companies and the trend of this data. The Bureau of National Affairs publishes this data on a monthly basis by industry. From the BNA report on the first quarter of 1993, absence rates rose from a year earlier in almost all size, industry, and geographic categories, with the sharpest increases occurring among larger companies. The BNA also reported that the long period of decline in employee turnover may be at an end, but separation rates remain at the low levels of the past two years. Also, have students research how job absence rates and turnover rates are calculated. 10. “It Finally Happened: The Cyberfiring, Brought to You by AT&T.” In September, 1995, 8,500 AT&T employees were told they had been made redundant through a company-wide e mail message. (Source: People Trends, September 1995, p. 10). Have students discuss the advantages and disadvantages of using e mail for such announcements, from the perspective of employers and of employees. HRM Failures Top Case 10: When Terminated Workers Are Entitled to Disability Benefits Employers who terminate workers, for any reason, should exercise care. Claire Cole, a 25-year administrative assistant with the city of Salem, Massachusetts, was at work when her supervisor called her into his office and informed her that her position was being terminated. She became tearful and received permission to leave the office for the day. One hour after the conversation with her supervisor, she experienced a heart attack. After her heart attack, Cole was unable to work. Furthermore, her application for accidental disability retirement benefits was denied three times, despite her doctors’ statement that the heart attack was brought on by the emotional stress Cole experienced when she learned she was losing her job. Cole never returned to work after her heart attack and later died. In 2006, the Contributory Retirement Appeal Board ruled that Cole’s heart attack had been caused by stress related to the news that she would lose her job. Salem’s Retirement Board appealed, saying Cole should not receive the benefits because her heart attack had not occurred while she was doing her job. However, a trial court affirmed the Appeal Board’s decision, later upheld by the Massachusetts Supreme Court. Because Cole died before receiving her benefits, the high court awarded the benefits to her estate, saying “benefits may permissibly be awarded only when a disabling injury is sustained during the performance of work duties and not merely as a result of being at work when injured.” Question How might an HR professional have handled this situation differently? Possible answers •Carefully consider all the facts of the case: the employee’s heart attack occurred shortly after being notified she was losing her job. Had her supervisor not permitted her to leave the office, the heart attack might well have occurred in the workplace. •The employee accrued 25 years of service before her job was eliminated. Her application for accidental disability benefits was then subjected to years of bureaucratic red tape before the matter was ultimately settled in the state supreme court after her death. Employers should consider the impact that such protracted litigation can have on employee morale and on the municipality’s reputation with the public. An HR professional could have handled this situation differently by: 1. Providing Support: Offering emotional support and counseling services to Claire Cole immediately after informing her of the termination to help manage her stress. 2. Clear Communication: Ensuring that the termination process is communicated clearly and sensitively, providing options for follow-up discussions if needed. 3. Health and Wellness Resources: Informing her about available health and wellness resources, including employee assistance programs (EAPs) for managing emotional and physical stress. 4. Documenting the Process: Keeping detailed records of all interactions and support offered, to ensure that any potential health issues related to the termination are documented. 5. Consulting Medical Professionals: Consulting with medical professionals to understand the potential impacts of stress on employees and incorporating this understanding into termination procedures. Case: Retirement Board of Salem v. Contributory Retirement Appeal Board, SJC-10215, February 24, 2009. Source: Roberto Ceniceros, “Disability Award Upheld for Heart Attack Victim,” Workforce Management, March 2, 2009, http://www.workforce.com. Solution Manual for Human Resource Management Raymond Noe, John Hollenbeck, Barry Gerhart, Patrick Wright 9780077164126