Transcript Procedural Justice and Ethics
Procedural Justice and Ethics
Wayne F. Cascio Executive MBA Class of 2008 January 19, 2008
Some Definitions Procedural Justice The fairness of the procedures used to make decisions What makes procedures fair?
Consistent across persons and over time Free from bias Based on accurate information Correctable
More Definitions Ethical decisions about behavior Take account not only of one’s own interests, but also those affected by a decision Just cause - An employer must do 3 things Produce persuasive evidence of an employee’s negligence Provide the employee a fair hearing Impose a penalty appropriate for the offense
Due Process - Rights Prior notice of prohibited conduct Timely procedures adhered to at each step of the procedure Notice of the charges or issues prior to a hearing Impartial judges or hearing officers Representation by counsel
Due Process - Rights Opportunity to confront and cross-examine adverse witnesses and evidence Opportunity to present proof in one’s own defense Notice of decision Protection from retaliation for using a complaint procedure
Employee Rights to Due Process Based on one of the following: Collective bargaining agreement Legislative protections Procedures provided unilaterally by an employer Constitutional due process rights protect individual rights when dealing with governments – city, state, federal
Workplace Due Process Make sure HR Dept. has expertise in dispute resolution Train all managers and supervisors to use the company’s due process approach Do you want a panel system or a single adjudicator?
Panel = 3 peers + 2 managers Adjudicator = fact-finder + arbitrator
Basic Rules of Performance Counseling Be prepared Be factual Support the employee’s good performance Decide to help the employee improve performance Plan for the future
How to Document Incidents Describe what led up to it – problem and setting Describe what actually happened that was so effective or ineffective Be specific! Include names, dates, times, and other facts Describe the consequences of the effective/ineffective behavior
The Red Hot Stove Rule Discipline should be: Immediate With warning Consistent Impersonal
Termination – Legally and Humanely Review all relevant facts Get employee’s version How were similar cases handled in the past?
Prior to interview, answer 3 basic questions: Who – immediate manager When – not on Friday; any personal concerns?
Where – neutral territory
The Termination Interview Present the situation in a clear, concise, and final manner Avoid debates or a rehash of the past Be empathetic, but not compromising What’s the next step?
Be prepared for a variety of reactions
Typical Severance Agreements Lower-level employees 1 week’s pay for each year of service Executives earning $50 - $150,000 8 months Executives earning $150 - $200,000 11 months CEOs with contracts – 2-3 years
Employment Contracts Governed by state law Most firms include choice-of-law prov.
State that the contract is the entire agreement It can be amended only in writing, and when signed by both parties Limit “no-competes” by geography, length of time
When Should You Ask for An Employment Contract?
Competition for talent is intense Ideas are at a premium Non-standard conditions of employment Duration – 2-3 years, during which you agree not to quit Components – title, pay, benefits, stock options, vacation, terms of firing, severance
Employment Contracts No-solicitation clause Payback clause Company-match clause No-disclosure clause No-compete clause Fiduciary duty of loyalty applies with or without a contract
Employment Contracts Suggestions for Negotiating Decide beforehand 4 5 “make-or-break” issues Clarify 2ndary issues, such as length of vacation or company car, but don’t let them become a source of contention Present the entire package at once. Don’t nit pick, 2 nd guess, or keep coming back for one more concession
Employment Contracts Let the company win on some issues Don’t pressure to the point where you come in “looking greedy”
Privacy The interest employees have in controlling the use of their personal information and in being able to engage in behavior free from regulation or surveillance 3 main issues: Kind of information collected and retained How that information is used Extent to which it can be disclosed to others
Fair Information Practice Policies Limit collection of information to that which is relevant Inform employees about the types of information being maintained and how it is used Adopt procedures to ensure accuracy, timeliness, and completeness of information Permit employees to see, copy, correct, or amend their own records
Whistle-Blowing Disclosure of illegal, immoral, or unethical practices under control of the employer to persons or organizations that might be able to do something about them
Research on Unethical Behavior People can be conditioned to behave unethically (if rewarded for it), especially under increased competition But the threat of punishment has a counter-balancing influence When policies favoring ethical behavior are present, ethical behavior increases
Protections and Incentives 40 states + federal government protect the jobs of workers who report wrongdoing by their companies False Claims Act of 1863 (as recently amended): Citizens may sue a federal contractor for fraud on the government’s behalf Share up to 30% of $ recovered
Whistle Blowing Do’s and Don’ts Do ensure your allegations are correct Keep careful records, learn if your state provides protection for whistle-blowers Talk to your family; prepare for worst Legal protection for non-federal Es varies Don’t run to media, don’t expect a windfall