Post on 13-Feb-2017
Chapter Sixteen
Employment Transitions
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Chapter Outline
• Career Paths and Career Planning• Retirement• Voluntary Turnover• Involuntary Turnover• Employment-at-Will• Discipline and Termination for Cause• Retrenchment and Layoff
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Figure 16.1(a) Linear Career Paths
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Alternate Career Paths
• Expert or Professional Career Ladders– Junior engineer, Engineer, Senior Engineer
• Transitory Career Paths– Many shifts across organizations, may
include self employed periods and consulting
• Spiral Career Paths between functions to develop additional skills
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Figure 16.1(b) Spiral Career Paths
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Career Planning
• Self assessment of interests and skills• Exploration of job alternatives inside
and outside the organization• Formulation of career goals and plans• Action and periodic review and updating
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Figure 16.2 Aligning Needs and Offers
Source: Mike Broscio and Joe McClenna, Scherer Schneider Paulik, Chicago, “Taking Charge: Charting Your Way To Career Success, HEALTH CARE EXECUTIVE, Nov/Dec. 2000, pp. 18-22. Copyright Scherer Schneider Paulick 2001.
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Retirement
• No mandatory retirement age• Retirement - full or partial?
– Bridge jobs– Phased retirement
• The Impact of Retirement on Organizations
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Factors Affecting Voluntary Turnover
• External Factors– Unemployment rate– Alternative jobs available
• Internal Factors– Job satisfaction and organizational commitment– Fairness, growth opportunities
• Embeddedness– Number of links between employee and firm,
locality, family, etc.
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Figure 16.3 A Traditional Model of Quitting
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Figure 16.4 The Optimal Turnover Rate
Source: Adapted from Michael A. Abelson and Barry D. Baysinger, “Optimal and Dysfunctional Turnover: Toward an Organizational Level Model,” Academy of Management Review, Vol. 9, 1984, p. 333. Reprinted by permission.
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Figure 16.5 Performance Replaceability Strategy Matrix
Source: D.C. Martin and K.M. Bartol, “Managing Turnover Strategically,” Reprinted with permission from the November 1985 issue of Personnel Administrator, copyright 1985, The American Society of Personnel Administration.
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Retention Management
• Find out what drives employees away (exit interviews and organizational surveys) and fix it
• Benchmark and set goals for retention, hold managers accountable for results
• Maximise opportunities for employees’ growth• Use rewards and recognition fairly and
effectively• Be flexible and family-friendly• Plan for knowledge retention before employees
leave
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Employment-at-Will
• Most employees can be terminated at any time and for any reason
• Limitations on right to terminate at will:– Civil Rights Legislation– Union Contracts– Lawsuit claiming wrongful discharge
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Bases for Wrongful Discharge Claim
• Violations of Public Policy• Whistleblowing• Expressed or Implied Guarantee of
Continued Employment• Good Faith and Fair Dealing• Tortious Conduct by Employer
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Preventing Employment-at-Will Problems
• Make explicit statements that employment is at-will
• Write contracts specifying termination procedures
• Carefully document performance or behavior problems that may lead to discharge
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Discipline Systems
• Positive Discipline Without Punishment– Warning, then suspension with pay, followed by
pledge to mend ways or voluntary resignation• Progressive Discipline Systems
– Escalating penalties for repeated offences– Warnings, then suspensions, then discharge– Immediate discharge for very serious offenses
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Managing Termination for Cause
• Investigate offences carefully and tactfully
• Document everything• Have decision reviewed by a higher
level
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Retrenchment and Layoff
• Layoffs don’t always solve an organization’s problems
• They must be carefully planned to focus on productivity improvement not just cost cutting
• Wide involvement in planning is desirable• Communication is important• Laid off employees need outplacement
assistance• Survivors need care too
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Legal Constraints on Layoffs
• Worker Adjustment and Retraining Notification Act (WARN)– Requires 60 days notice of mass layoffs or
plant closings affecting over 500 employees, or 1/3 of the workforce.
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Review
• Career Paths and Career Planning• Retirement• Voluntary Turnover• Involuntary Turnover• Employment-at-Will• Discipline and Termination for Cause• Retrenchment and Layoff