© 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

© 2008 by Prentice Hall 13-5

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

© 2008 by Prentice Hall 13-6

Transfers

• Lateral movement of worker within organization

• Should not imply that person is being either promoted or demoted

© 2008 by Prentice Hall 13-7

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

© 2008 by Prentice Hall 13-9

Resignation

• Exit interview• Advance notice

of resignation

© 2008 by Prentice Hall 13-10

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