Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
Procedural Justice And
Ethics in Employee
Relations
14
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Definitions
Employee relations – all of the practices that implement the
philosophy and policy of an organization with respect to
employment
 Justice – the maintenance or administration of what is just,
especially by the impartial adjustment of conflicting claims or the
assignment of merited rewards or punishments
 Procedural justice –the fairness of the procedures used to make
decisions. Procedures are fair to the extent that they are consistent
across persons and over time, free from bias, based on accurate
information, correctable, and based on prevailing moral and ethical
standards

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Definitions
justice –fairness of the outcomes of decisions, for
example, in the allocation of bonuses or merit pay, or in making
reasonable accommodations for employees with disabilities
 Due process – in legal proceedings provides individuals with rights
as set forth by the Constitution of the United States.
 Distributive
Protects individual rights with respect to state, municipal, and federal
government processes
 Normally does not apply to work situations.
 Employee rights to due process are based on a collective bargaining
agreement, on legislative protections, or on procedures provided
unilaterally by an employer

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Definitions
decisions about behavior – concern one’s conformity to
moral standards or to the standards of conduct of a given profession
or group
 Ethical

Ethical decisions take account not only of one’s own interests, but also
equally of the interests of those affected by the decision
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Components of Procedural Justice
 Employee

voice
Provides individuals and groups the capacity to be heard, a way to
communicate their interests upward
 Interactional

justice
Quality of interpersonal treatment that employees receive in their
everyday work
 Informational

justice
Expressed in terms of providing explanations or accounts for decisions
made
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Core Characteristics
of Effective Voice Systems
 Elegance

Simple procedures, broad application, vested authority, good
diagnostic system
 Accessibility

Easy to use, advertised, comprehensive, open process
 Correctness

Includes follow-up, self-redesigning, correctable outcomes
 Responsiveness

Timely, culturally viable, tangible results, management commitment
 Nonpunitiveness

Appeal system, anonymity, no retaliation for using the system
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Negative Versus ‘Positive’ Discipline
 Three
reasons managers avoid imposing traditional discipline:
Ignorance of organizational rules
 Fear of formal grievances
 Fear of losing the friendship of employees

 Positive
discipline, an alternative to traditional discipline
Employees who commit offenses first get an oral “reminder” rather
than a “reprimand”
 If no change, the employee receives a written reminder, followed by a
paid day off – called a “decision-making leave day”
 The fully documented process is followed by termination if the
employee does not change

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Improving the Effectiveness
of Progressive Discipline
discipline – a procedure that proceeds from an oral
warning to a written warning to a suspension to a dismissal
 For progressive discipline to be effective:
 Progressive
The employee needs to know what the problem is
 The employee must know what to do to fix the problem
 The employee must have a reasonable period of time to fix the
problem
 The employee must understand the consequences of inaction

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Administering Discipline Without
Incurring Employee Resentment
 Follow
the red-hot-stove rule:
Immediate – there should be no misunderstanding about why
discipline was imposed; people are disciplined not because of who
they are (personality), but because of what they did (behavior)
 With warning – employees must know very clearly what the
consequences of undesirable work behavior will be; provide adequate
warning
 Consistent –to be perceived as fair, discipline must be administered
consistently, given similar circumstances surrounding the undesirable
behavior
 Impersonal – managers cannot play favorites by disciplining
subordinates they do not like, while allowing the same behavior to go
unpunished for those they do like

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Firing Employees Legally & Humanely
Be sure that all supervisors understand company policies and
provide a termination checklist for them to use
 Before deciding to dismiss an employee:

Conduct a detailed review of all relevant facts
 To ensure consistent treatment, examine how similar cases have been
handled in the past
 After deciding on termination, the termination interview should
minimize the trauma for the affected employee

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Firing Employees Legally & Humanely
 Prior
to conducting a termination interview, answer three questions:
Who? – the responsibility for terminating rests with the manager of the
individual who is to be released; no one else has the credibility to convey
this difficult message
 When? – consider personal situations – birthdays, anniversaries, family
illnesses, and day of the week
 Where? – neutral territory – not the manager’s or the employee’s office

 Five
rules for the termination interview:
Present the situation in a clear, concise, and final manner
 Avoid debates or a rehash of the past
 Never talk down to the individual
 Be empathetic but not compromising
 Explain the “next step” – severance, benefits, outplacement arrangements

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Establishing a Fair Information
Practice Policy

Set up guidelines and policies to protect information in the
organization: types of data sought, methods of obtaining it,
retention and dissemination policies, employee or third-party access
to information, release of information about former employees, and
mishandling of information
Inform employees of these information-handling policies
 Become thoroughly familiar with state and federal laws regarding
privacy
 Establish a policy that states specifically that employees and
prospective employees cannot waive their rights to privacy
 Establish a policy that any manager or non-manager who violates these
privacy principles will be subject to discipline or termination

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Articulating, Communicating, and
Implementing Policies
Avoid fraudulent, secretive, or unfair means of collecting data; when
possible, collect data directly from the individual concerned
 Do not maintain secret files on individuals; inform them of what
information is stored on them, the purpose for which it was collected,
how it will be used, and how long it will be kept
 Collect only relevant, job-related information
 Maintain records of individuals or organizations who have regular
access or who request information on a need-to-know basis
 Periodically allow employees the right to inspect and update
information stored on them
 Gain assurance that any information released to outside parties will be
used only for specific purposes

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.
Privacy Dilemmas

Privacy – the interest employees have in controlling the use that is
made of their personal information and in being able to engage in
behavior free from regulation or surveillance

Three main issues
The kind of information collected and retained about individuals
 How this information is used
 The extent to which it can be disclosed to others

Ethical dilemmas – situations that have the potential to result in a
breach of acceptable behavior
 Ethical behavior adapts and changes in response to social norms

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.