© 2008 by Prentice Hall 13-1
Termination
Most severe penalty; should be most carefully considered
• Termination of nonmanagerial/ nonprofessional employees
• Termination of executives• Termination of middle- and
lower-level managers and professionals
© 2008 by Prentice Hall 13-2
Termination of Nonmanagerial/Nonprofessional
Employees
• If firm unionized, termination procedure well defined in labor agreement
• Non-Union workers can generally be terminated more easily
© 2008 by Prentice Hall 13-3
Termination of Executives
• Economic• Reorganization/downsize• Philosophical differences• Decline in productivity• No formal appeals
procedure
© 2008 by Prentice Hall 13-4
Termination of Middle- and Lower-Level Managers and Professionals
• In past, most vulnerable and neglected group with regard to termination
• Not members of union nor protected by labor agreement
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Demotion as Alternative to Termination
• Demotions used as alternative to discharge
• Demotion is process of moving worker to lower level of duties and responsibilities, usually involving reduction in pay
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Transfers
• Lateral movement of worker within organization
• Should not imply that person is being either promoted or demoted
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Transfers Serve Several Purposes
• Necessary to reorganize• Make positions available in primary
promotion channels• Satisfy employees’ personal desires• Deal with personality clashes• Becoming necessary to have wide variety
of experiences before achieving promotion
© 2008 by Prentice Hall 13-8
Promotion
• Movement to higher level in company
• One of the most emotionally charged words in human resource management
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Resignation
• Exit interview• Advance notice
of resignation
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Analyzing Voluntary Resignations
• Exit interview - Means of revealing real reasons employees leave jobs which is conducted before employee departs company
• Postexit questionnaire - Sent to former employees several weeks after leave organization to determine real reason the employee left.
© 2008 by Prentice Hall 13-11
Attitude Surveys: Means of Retaining Quality Employees
Seek employee input to determine feeling about such topics as:
• Work environment• Opportunities for advancement• Firm’s compensation system• Their supervisor• Training and development opportunities
© 2008 by Prentice Hall 13-12
Advance Notice of Resignation
• Would like 2 weeks• Communicate policy to all
employees• May pay employee for
notice time and ask him/her to leave immediately
© 2008 by Prentice Hall 13-13
Retirement
Many long-term employees leave organization through retirement
© 2008 by Prentice Hall 13-14
A Global Perspective: Getting Information to Support Disciplinary
Action
• Multinational companies face significant challenges when they try to encourage whistle-blowing across a wide variety of cultures
• Number of cultural factors that discourage international employees from reporting misconduct
© 2008 by Prentice Hall 13-15