CHAPTER 7

1. CHAPTER 7 Employee Relations

2. Chapter Objectives • To discuss employees as stakeholders • To examine the economic, legal, ethical, and philanthropic responsibilities related to employees • To describe an employer of choice and the employer of choice’s relationship to social responsibility

3. EconomicResponsibilities to Employees • Employee-employer contract • Psychological contract

4. Workforce Reduction • Process of eliminating employment positions • Can involve reducing the number of employees, simplifying products and processes, and decreasing quality and service • Makes the private relationship between employee and employer a public issue that creates concern, criticism, and economic effects on multiple stakeholders

5. How Individuals CanMitigate the Effects of Downsizing • Employees should understand how their skills and competencies affect business performance. • Employees should strive for cost-cuttingand conservation strategies regardless of the employer’s current financial condition. • Today’s work environment requires that most employees fulfill diverse and varying roles.

6. Legal Responsibilities to Employees • Employment at will • Wages and benefits • Labor unions • Health and safety • Equal opportunity employment • Sexual harassment

7. Whistle-Blowing A whistle-blower is one who reports individual or corporate wrong-doing to either internal or external sources.

8. Ethical Responsibilities to Employees • Training and development • Diversity • Allow for work/life balance

9. Philanthropic Activities • Corporate giving affects employee attitudes toward the organization. • Employees benefit from participating in volunteerism programs and other philanthropic projects.

10. Strategic Considerations • Strong employee initiatives lead to a company being viewed as the “employer of choice.”