Chapter 15: Employees
Alcohol abuse at work
causes twice the problems of all illegal drugs combined dangerous to themselves and others causing many industrial fatalities and injuries mostly caused by hangovers or lunch break drinks, not alcoholics
Arguments opposing employee drug testing
-invades employee's privacy -violates an employee's right to due process -may be unrelated to job performance -may be used as a method of employee discrimination -lowers employee morale -conflicts with company values of honesty and trust -may yield unreliable test results -ignores effects of prescription drugs, alcohol, and over the counter drugs -drug use an insignificant problem for some companies
Employers restrictions in termination
-may not fire because of race, gender, religion, national origin, age, or disability because equal employment laws -may not fire if it'd constitute a violation of public policy, as determined by courts -if it violates the worker adjustment retraining notification act (WARN): requires most big employers to provide 60 days advance notice whenever they lay off a third or more of their workers at a work site, if they don't they must pay workers for any days of advance notice that were missed -may not fire simply because the individual was involved in a union organizing drive or activity -may not fire if it'd violate an implied contract such as a verbal promise or basic rules of "fair dealing" -if workers are covered by a collective bargaining agreement, it may impose additional restrictions
Occasions of drug testing
-preemployment screening: testing job applicants before hiring and often informing the applicant ahead of time -random testing of employees: workers in particular job categories (operators of heavy machinery) or levels (supervisors) are eligible for screening at any time -testing for cause: when an employee is believed to be impaired by drugs and unfit for work after an accident or some observable change in behavior
Arguments favoring drug testing
-supports U.S. policy to reduce illegal drug use and availability -improves employee productivity -promotes safety in the workplace -decreases employee theft and absenteeism -reduces health and insurance costs
Four conditions must be satisfied to justify whistle blowing
-the organization is doing/or will do something that seriously harms others -the employee has tried and failed to resolve the problem internally -reporting the problem publicly will probably stop or prevent the harm -the harm is serious enough to justify the probably costs of disclosure to the whistle blower and others
Employee assistance programs
EAPs; provided for alcohol and drug abusers offering counseling and follow up by contracting with outside vendors
Workplace Rights
Employees right to -organize and bargain collectively -have a safe and healthy workplace -have job security
OSHA
Occupational safety and health administration, administers the occupational safety and health act (1970) which gives workers the right to a job free from recognized hazards that are causing or likely to cause death or serious physical harm sets and enforces safety and health standards; employers in violation can be fined and even jailed in cases of death very successful in improving worker safety and health: decreased workplace deaths, serious occupational illnesses reduced, lead poisoning has fallen Criticized for being too costly to implement and administer rules, esp for small businesses; in response, OSHA has entered into cooperative partnerships with employers to improve safety and health for the benefit of both companies and their workers
Living wage
a wage that enables workers, for their labor during a standard work week, to support half the basic needs of an average sized family based on local prices near the workplace paid to employees in response to address income inequality benefits to companies increasing wages: healthy growth and excellent shareholder returns due to higher labor productivity, customer service, cost cutting, innovation, and flexibility during difficult times
Ergonomics
adapting the job to the worker, rather than forcing the worker to adapt to the job in response to new categories of accidents or illnesses i.e. repetitive motion disorders
Honesty tests
e.g. polygraphs, very controversial used in response to employee theft, which is very costly to companies employee polygraph protection act severely limited polygraph testing so corporations have switched to psychological tests to predict employee honesty on the job and reduce potential theft potential to generate false positives and intrude on a person's privacy and discriminate disproportionately against minorities
Codetermination
employee representatives included on boards of directors
Benefits of strong bonds and job security
enhanced loyalty, productivity, and commitment
Rise in income inequality
federal and state minimum wage laws taxation policy economic growth unionization rates paying high executive compensation and keeping ordinary employee wages low
Social contract
implied understanding (not a legal contract, but rather a set of shared expectations) between an organization and its stakeholders; related to cultural values, traditions, and norms
Downsides of strong bonds/job security
investments are expensive, and long term commitment makes it hard for adjusting to the dynamic business cycle
Employment-at-will
legal doctrine that means employees are hired and retain their jobs "at the will of" (at the sole discretion of) the employer; evolved over time today, employers' freedom to terminate workers has been curtailed
drug testing
method of protecting businesses from risks associated with drug use in the workplace e.g. cost of lost productivity, medical claims, rehab services, and crime and accidents related to drugs began after Drug-Free Workplace Act which required federal contractors to establish and maintain a workplace free of drugs controversy: job applicants and employees feel it's unnecessary and violates their privacy and due process rights
Romance in the workplace
more accepted now, except when in direct chain of command or significantly different rank
labor unions
organizations that represent workers on the job works have the eight to hold an election to choose what union they want to represent them, if any Unions negotiate with employers over wages, working conditions, and other terms of employment; employers aren't required by law to agree to the union's demands but they are required to bargain in good faith; if two parties can't reach an agreement, strikes may occur or employees may appeal to politicians or refuse to work overtime lowest unionization rate in U.S., highest in Sweden all workers are protected by wage and hour laws that require employers to pay at least a minimum wage and extra pay for certain kinds of overtime work Declining since 1950s; higher unionization in public sector; but still continues in private sector Right to work law: bars unions from requiring all workers they represented to pay dues or fees Political arena unionization: use PACs and voted shares of stock in which their pension funds were invested to pursue institutional objectives
privacy rights
protecting an individual's personal life from unwarranted intrusion by the employer
Most dangerous jobs
protective services transportation and material moving farming buildings and ground maintenance and cleaning manufacturing and construction jobs are riskier than service jobs
electronic monitoring
technologies (email, social media, cell phones, internet browsing) enables companies to gather monitor and analyze information about employees' activities using data analytics management justification: interest in efficiency, avoiding lawsuits of inappropriate employee behavior, ensuring confidential information isn't disclosed or embarrassing statements are made, monitoring used for training and quality control Legal through electronic communications act that exempts employers employers should clearly define their monitoring policies, let employees know what behavior is expected, and apply sanctions in a fair and even handed way
gig economy
temporary work sector i.e. temporary workers and independent contractors allows companies to become more cost efficient but has shifted risk to workers, sowed anxiety and driven down incomes some workers prefer flexibility of these jobs but many are there because they couldn't find stable employment aka sharing economy
New social contract
trend of significant corporate restructuring and downsizing (termination) of employees due to fierce global competition and greater attention to improving the bottom line weakening employer and employee bonds rather than offer long term job security, companies emphasize interesting and challenging work, performance based compensation, and ongoing professional training in attracting/retaining employees
Whistle blowing
when an employee believes his employer has done something that is wrong or harmful to the public, and he reports alleged organizational misconduct to the media, government, or high level company officials Constitution doesn't protect free speech in the workplace; company information is proprietary and private; may not speak out against their employers ONLY when society's interests override those of the company risky: charges are usually ignored or employee is ostracized, demoted, or fired employees in U.S. are protected despite at-will employment; they may sue for reinstatement and be entitle to punitive damages if discharged for whistle blowing in a situation that affects public welfare Sarbanes Oxley Act makes it illegal for employers to retaliate in any way against whistle blowers who report information that could have an impact on the value of a company's shares Dodd Frank Act requires the government to pay a reward to whistle blowers who voluntarily provide information that leads to successful prosecutions for violations of federal securities law; also prohibits retaliation against employees May benefit through the U.S. False Claims Act aka Lincoln Law that allows individuals who sue federal contractors for fraud to receive up to 30 percent of any amount recovered by the government; incentive has increased lawsuits exposing fraud