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Chapter 4
Employee Rights and Ethical Issues
Copyright © 1999 John Wiley & Sons Canada, Ltd. All rights reserved.
Ethical Dilemmas in HRM
• An employee who has made a great
business contact is suspected of
substance abuse -- what do you do?
• You discover that two of your
contractors in Bangladesh are
using child labour. If these
children lose their jobs, they may
be driven into prostitution -what do you do?
HUMAN RESOURCES MANAGEMENT
Templer • Cattaneo • De Cenzo • Robbins
John Wiley & Sons Canada, Ltd
Ethics Training
1. Have a policy on ethics.
2. Communicate this policy to employees.
3. Train employees to make ethical
decisions.
4. Reinforce the fact that all decision
makers face similar dilemmas.
5. Reward ethical decision makers.
HUMAN RESOURCES MANAGEMENT
Templer • Cattaneo • De Cenzo • Robbins
John Wiley & Sons Canada, Ltd
Why Establish a
Code of Ethics?
• Attract customers and raise
employee morale and
productivity
• Enhance reputation
• Improve relations with
government
HUMAN RESOURCES MANAGEMENT
Templer • Cattaneo • De Cenzo • Robbins
John Wiley & Sons Canada, Ltd
Employee Rights: Privacy
• Access to Information Act
• Privacy Act
• Parallel legislation in
provinces and territories
HUMAN RESOURCES MANAGEMENT
Templer • Cattaneo • De Cenzo • Robbins
John Wiley & Sons Canada, Ltd
Employee Rights: Privacy
Employees may:
• Review personnel files
• Receive feedback on test performance
• Be protected from drug and alcohol
testing and electronics monitoring
HUMAN RESOURCES MANAGEMENT
Templer • Cattaneo • De Cenzo • Robbins
John Wiley & Sons Canada, Ltd
Employee Rights:
Drug and Alcohol Testing
Entrop v. Imperial Oil led to guidelines
for drug and alcohol testing:
• Safety or performance must be affected
• Conditional offer of employment must
have been made
• Testing must meet rigorous standards
• Can only test for substance for which
sample was taken
HUMAN RESOURCES MANAGEMENT
Templer • Cattaneo • De Cenzo • Robbins
John Wiley & Sons Canada, Ltd
Employee Rights:
Drug and Alcohol Testing
Organizations need to:
• Accommodate individuals
who fail drug or alcohol test
• Draft clear policies on
substance abuse
HUMAN RESOURCES MANAGEMENT
Templer • Cattaneo • De Cenzo • Robbins
John Wiley & Sons Canada, Ltd
Employee Rights:
Whistle-Blowing
• Legal protection for employees
who raise questions about
organizational practices with
government
• Organizations may voluntarily
adopt whistle-blowing policies
HUMAN RESOURCES MANAGEMENT
Templer • Cattaneo • De Cenzo • Robbins
John Wiley & Sons Canada, Ltd
10 Steps to an Effective
Whistle-Blowing Policy
1. Develop a written policy.
2. Seek input from top management.
3. Communicate policy to employees in a
variety of ways.
4. Don’t require employees to go to their
supervisor first.
5. Allow employees to report anonymously.
HUMAN RESOURCES MANAGEMENT
Templer • Cattaneo • De Cenzo • Robbins
John Wiley & Sons Canada, Ltd
10 Steps to an Effective
Whistle-Blowing Policy
6. Guarantee employees will be protected
from retaliation.
7. Develop a formal investigative process.
8. Take prompt action.
9. Provide an appeals process.
10. Secure commitment of whole
organization, from the top down.
HUMAN RESOURCES MANAGEMENT
Templer • Cattaneo • De Cenzo • Robbins
John Wiley & Sons Canada, Ltd
Employees Rights:
Employee Monitoring and
Workplace Security
• As long as they have a policy
regarding monitoring, employers
may check on employee behaviour
• Considered unethical not to inform
employees that management will
monitor behaviour
HUMAN RESOURCES MANAGEMENT
Templer • Cattaneo • De Cenzo • Robbins
John Wiley & Sons Canada, Ltd
Dismissal: Reasonable Pay
or Pay in Lieu of Notice
• Eases employee’s transition into
new employment
• Notice period determined by
Employment Standards
Legislation and by the courts
• Employees may sue for
wrongful dismissal to appeal
length of notice period
HUMAN RESOURCES MANAGEMENT
Templer • Cattaneo • De Cenzo • Robbins
John Wiley & Sons Canada, Ltd
Dismissal:
Determining Just Cause
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Adequate warning of consequences
Reasonable rules
Fair investigation of violation
Definite proof of worker wrongdoing
Similar occurrences handled in same
manner
• Penalty in line with seriousness of
offence
HUMAN RESOURCES MANAGEMENT
Templer • Cattaneo • De Cenzo • Robbins
John Wiley & Sons Canada, Ltd
Dismissal:
Good Faith and Fair Dealing
• Courts hold organizations
accountable for treating
employees with respect during
dismissal process
• May impose additional damages
if organizations act in bad faith
HUMAN RESOURCES MANAGEMENT
Templer • Cattaneo • De Cenzo • Robbins
John Wiley & Sons Canada, Ltd
Dismissal:
Constructive Discipline
• Employer unilaterally
changes conditions of
employment
• Employee need not
accept new positions
HUMAN RESOURCES MANAGEMENT
Templer • Cattaneo • De Cenzo • Robbins
John Wiley & Sons Canada, Ltd
Factors to Consider
when Disciplining
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Seriousness
Duration
Frequency and nature
Extenuating factors
Degree of socialization
History of discipline practices
Management backing
HUMAN RESOURCES MANAGEMENT
Templer • Cattaneo • De Cenzo • Robbins
John Wiley & Sons Canada, Ltd
Disciplinary Guidelines
• Corrective, not punitive
• Use progressive discipline
• Follow hot-stove rule
HUMAN RESOURCES MANAGEMENT
Templer • Cattaneo • De Cenzo • Robbins
John Wiley & Sons Canada, Ltd
The Progressive
Discipline Process
HUMAN RESOURCES MANAGEMENT
Templer • Cattaneo • De Cenzo • Robbins
John Wiley & Sons Canada, Ltd
Steps to Positive Discipline
1. Oral Reminder -- Identify causes of problem
and ways to fix it before it grows
2. Written Reminder -- Reinforces oral
reminder; adds timetable and consequences
3. Decision-Making Leave -- Time off from
work to make a choice to correct behaviour or
separate from company
HUMAN RESOURCES MANAGEMENT
Templer • Cattaneo • De Cenzo • Robbins
John Wiley & Sons Canada, Ltd