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Unit 12 - Employee Misconduct and Disciplinary Procedure
Master's in Business Administration (MBA001)
Manipal University Jaipur
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Unit 12 Employee Misconduct and
Disciplinary Procedure
Structure: 12 Introduction Objectives 12 Meaning and Objectives of Discipline 12 Principles for Maintenance of Discipline 12 Basic Guidelines of a Disciplinary Policy 12 Disciplinary Action - Penalties 12 Procedure for Disciplinary Action 12 Summary 12 Glossary 12 Terminal Questions 12 Answers 12 Case Study
12 Introduction
In unit 7, you have learnt about performance appraisal. Performance appraisal is an overall evaluation of the employee in the organization. You have also learnt that well conducted and disciplined employees have a higher chance of being promoted.
Managing employee behaviour and performance is one of the important tasks of managers. Discipline refers to the employees’ observance of standards set by the organisation. Disciplinary action refers to punishing the employees who fail to meet the standards of behaviour.
Many organisations maintain a disciplinary policy or system to regulate the behaviour of the employees and deal with acts of indiscipline. Purpose of disciplinary action is not to punish erring employee but to make them understand what type of behaviour organisation wants from the employees to maintain a proper decorum. In this unit, we will discuss the meaning and objectives of discipline, and the principles for maintenance of discipline. We will also study the basic guidelines of a disciplinary policy, disciplinary action penalties and the procedure for disciplinary action.
Objectives: After studying this unit, you should be able to: describe the concept of employee misconduct at the workplace state how discipline is implemented and measured analyse the techniques to ensure discipline
12 Meaning and Objectives of Discipline
Discipline is employee self-control which prompts him/her to willingly co- operate with the organisational standards, rules, objectives, etc.
Discipline is best defined as the observation of principles, rules or any other laid down procedures, practices, written or otherwise in the organisation by the employees or group of employees, to whom these apply, for smooth and effective functioning of the organisation.
As per Dr. Spriegal, "discipline is the force that prompts an individual or a group to observe the rules, regulations and procedures which are deemed to be necessary to the attainment of an objective; it is force or fear of force which restrains an individual or a group from doing things which are deemed to be destructive of group objectives. It is also the exercise of restraint or the enforcement of penalties for the violation of group regulations". Bremblett, Earl R says that, "discipline in the broad sense means orderliness-the opposite of confusion...”. According to Richard. D Calhoon, "discipline may be considered as a force that prompts individuals or groups to observe the rules, regulations and procedures which are deemed to be necessary for the effective functioning of an organisation.”
Webster's Dictionary gives the meanings of the word ‘discipline as follows:
"First, it is the training that corrects, moulds, strengthens or perfects. Second, it is the control gained by enforcing obedience. The third meaning is punishment or chastisement."
In its most practical form, employee misconduct does not mean strict and technical observance of rigid rules and regulations. It simply means working, cooperating and behaving in a normal and orderly way, as responsible adults.
disciplinary measures have serious implications for employees; they often are based on the principles of being fair, just and acceptable to employees and, where applicable, the union as well. It cannot be enforced or imposed on employees, as history has proved, it never benefits anyone. One of the most significant transformations that have impacted the workplace in the past few years is the ‘reinstatement’ of discipline in a positive and employee-supported environment. The way it is practiced in today’s organisations is extremely well communicated and adopts a discretionary approach.
The most important principles to be observed in the maintenance of discipline have been outlined by Yoder. Heneman, Turnball and Harold Stone:
As far as possible, all the rules should be framed in cooperation and collaboration with the representatives of employees. If the latter have a share in formulating them, they will be more likely to observe them.
All rules should be checked at regular intervals to ensure that they are working well according to the organisational policy and practice.
Rules should vary with changes in the working conditions of employees. Those framed for office employees, for example, may very well be different from those that are formulated for workers in an industrial concern.
Rules should be uniformly enforced if they are to be effective. They must be applied without exception and without bending them or ignoring them in favour of any one worker.
Penalties for any violation of any rule should be clearly stated in advance. Employees have the right to know what to expect in the event of any infringement of a rule or regulation. For this purpose, it is better to publish them in the employees' handbook.
A disciplinary policy should have as its objective as the prevention of any infringement rather than the simple administration of penalties, however just: it should be preventive rather than punitive.
Extreme caution should be exercised to ensure that infringements are not encouraged. This should be done as a matter of policy.
If violations of a particular rule are fairly frequent, the circumstances surrounding them should be carefully investigated and studied in order to discover the cause or causes of such violations.
For troublesome employees, the organisation should exercise more caution and take extra measures to control them.
Definite and precise provisions for appeal and review of all disciplinary actions should be expressly mentioned in the employees' handbook for collective agreements.
Self Assessment Questions
- As far as possible, all the rules should be framed in cooperation and collaboration with the ___________ of employees.
- ___________ should be uniformly enforced if they are to be effective.
- A disciplinary policy should be __________ rather than punitive.
Activity 1: Review few recent articles to identify 2-3 incidents of employee indiscipline. How do you think it should have been dealt and resolved by the organisation?
12 Basic Guidelines of a Disciplinary Policy
In the previous section, we discussed the principles for maintenance of discipline. Let us now study the basic guidelines of a disciplinary policy. Modern organisations have evolved the way it practices the art of managing employee misconduct. However the basic principles discussed remain as the guiding framework. The principal ingredients of a sound disciplinary system in organisations are:
- Location of responsibility: The responsibility of creating awareness regarding discipline is entrusted with every individual in the organisation. In case of employee indiscipline, the line manager issues only verbal and written warnings. In serious cases, which warrant discharge or suspension, the Industrial Relations Officer and other independent legal consultants need to be consulted.
- Proper formulation and communication of rules: The employees are expected to conform to rules and regulations, and behave in a
proven to be guilty. It is the organisation’s responsibility and therefore the HR team’s responsibility to prove beyond a reasonable doubt, that a violation or an offence has been committed before any punishment is awarded. The employee or employees need to be given the first opportunity to explain himself/herself/themselves. The kind of proof that would be needed for this purpose would depend on the gravity of the offence that has been committed. 8. Get the facts: Before taking any disciplinary action, it is important to ensure that records of the offence and any previous warnings are reviewed closely. 9. Action should be taken in a non-threatening atmosphere: Based on appropriate evidence management can take proper action against the accused employee.
Self Assessment Questions
- The ___________________ should issue only verbal and written warnings.
- While finalising the rules, _________________ should be given the opportunity to express freely their views.
- An employee should realise the ___________ of his/her inappropriate behaviour.
12 Disciplinary Action – Penalties
In the previous section, we discussed the basic guidelines of a disciplinary policy. Let us now discuss the disciplinary - action penalties. There are varying penalties for first, second, and third offences of the same rule. Following are the commonly practiced actions in business organisations:
Activity 2: Visit the official website of ITC and browse through the organisational code of conduct. List the aspect of personal conduct that the organisation wants the employees to adhere. Refer: itcportal/about.itc/itc-values/code-of-conduct.aspx.
Oral reprimand
Written warning
Denial of increments, promotions and pay hikes
Pay reductions and disciplinary demotions
Suspension
Discharge or dismissal
Oral reprimand: The penalties are listed in the general order of severity, from mild to severe. For most cases, an oral reprimand is sufficient to achieve the desired result. The supervisor must know his or her personnel in determining how to give a reprimand. For one person, a severe "session" may be necessary in order to get attention and cooperation; another person may require only a casual mention of a deficiency. If the offence is more serious, the reprimand may be put in written form.
Written warning: When an oral warning or counselling to the employee does not produce the desired result, the manager may issue a written warning to the employee. The employee is normally asked to acknowledge the receipt of written reprimand, irrespective of whether he agrees with the content of the letter or not.
Since a written reprimand is more permanent than an oral one, it is considered a more severe offence and the penalty levied accordingly.
Denial of increments, promotions and pay hikes: On some incidents the management may refuse promotions, increments or pay hike by blacklisting the employee for a specific period of time. This is usually treated as a punishment for a certain period of time.
Pay reductions and disciplinary demotion: This is usually more severe than the denial of pay hikes and promotions because the employee loses part of existing benefits and privileges received by him from the organisation.
In the case of demotion, an employee loses social status.
Suspension: A few offences normally require the direct suspension of the employee without any prior warning, depending upon the nature of the misconduct
Self Assessment Questions
The supervisor must know his or her employee in determining how to give a ________________.
Since a written reprimand is more permanent than a ________________ one, it is considered a more severe penalty.
Both discharge and dismissal culminate in __________ of employment.
12 Procedure for Disciplinary Action
In the previous section, we discussed the disciplinary - action penalties. Let us now discuss the procedure for disciplinary action.
Though there is no specific procedure to be followed, different organisations use a variety of formal and informal methods to resolve these matters. The following steps are recommended.
The different stages in the disciplinary procedure of an Indian organisation are discussed below:
Forming and issuing a charge sheet: When the management of an organisation wants to initiate an enquiry against an employee for alleged misconduct, the concerned employee is issued a charge sheet.
The charge sheet should clearly indicate the charges against the employee and seek an explanation for the employee’s misconduct.
Considering the explanation: If the employee admits his misconduct or if the management is satisfied with the explanation offered by the employee in response to the charge sheet, there is normally no further enquiry.
Issuing the notice of enquiry: If it is decided that an enquiry be held. A notice of enquiry has to be issued to the worker. The notice must mention the time, date and place of enquiry. An enquiry officer is also appointed, preferably a person who has good knowledge in law.
Holding a full-fledged enquiry: The enquiry should be in conformity with the principles of natural justice and the employee concerned must be given an opportunity to be heard. If it is felt that the offence is serious or that the employee concerned might influence the enquiry proceedings, he might
either be asked to go on leave or may be suspended without pay, pending enquiry.
Final order of action: The appropriate authority, based on the findings of the enquiry officer, makes the judgment. He either acquits the employee or judges him guilty of the charges. Based on the decision taken, the punishment for the employee’s misconduct is determined. Before that, the manager should consider the employee’s previous record.
In case the employee feels that the enquiry is biased or improper, and that the disciplinary action is unjust, he should be given a chance to make an appeal.
Follow-up: After administering disciplinary action, there should be proper follow-up. The punishment for misconduct should be conveyed to the employee.
Self Assessment Questions
When the management of an organisation wants to initiate an enquiry against an employee for alleged misconduct, the concerned employee is issued a ________.
The _________ should clearly indicate the charges against the employee and seek an explanation for the employee’s misconduct.
In case the employee feels that the enquiry is ____________ and that the disciplinary action is unjust, he should be given a chance to make an appeal.
12 Summary
Let us recapitulate the important concepts discussed in this unit:
Good employee conduct might be described as orderly behaviour based on definite standards catalysed by effective leadership. Disciplinary measures have serious repercussions on employees. Hence they should be based on certain principles so that they must be fair, just and acceptable to employees and their union. As far as possible, all the rules should be framed in cooperation and collaboration with the representatives of employees. All the rules should be appraised at frequent and regular intervals. Rules should be uniformly enforced if they are to be effective.
Poor discipline
Representatives
Rules
preventive
Line Executive
Everyone
Consequence
reprimand
Oral
Termination
charge sheet
Charge sheet
biased
Terminal Questions
Discipline is employee self-control which prompts him to willingly co- operate with the organisational standards, rules, objectives, etc. Objectives of discipline are to ensure and enable employees to work in accordance with the rules and regulations of the organization and to ensure that employees follow the organisational processes and procedures in spite of their different personalities and behavior. Refer section 1 for more details.
Since, disciplinary measures have serious implications for employees; they often are based on the principles of being fair, just and acceptable to employees and, where applicable, the union as well. It cannot be enforced or imposed on employees, as history has proved, it never benefits anyone. Refer section 12 for more details.
The different stages in the disciplinary procedure of an Indian organisation are discussed below: Forming and issuing a charge sheet, Considering the explanation, Issuing the notice of enquiry, Holding a Full-fledged Enquiry, Final order of Action, Follow-up. Refer section 12. for more details.
There are varying penalties for first, second, and third offences of the same rule. Following are the commonly practiced actions in business Organisation: a. Oral reprimand b. Written warning c. Denial of increments, promotions and pay hikes d. Pay reductions and disciplinary demotions e. Suspension f. Discharge or dismissal Refer section 12 for more details.
12 Case Study
HC Disallows Action Against Employee under Articles of Association Chennai April 13, The Madras High Court has ruled that use of articles of association of a State-owned transport corporation or clarifications by the State Government cannot be used to persist with a departmental enquiry against an employee for alleged misconduct.
If an employee had committed a loss or damage to business or property of the corporation, it could always institute civil proceedings for recovery notwithstanding whether the person was in service or not, Mr Justice K. Chandru held while allowing a writ petition from R. Balraj, Managing Director, TN State Transport Corporation.
The petitioner had joined the transport corporation as Works Manager and served in Cheran Transport Corporation; he was later transferred to TN State Transport Corporation and became a permanent employee from 1976 as Assistant Manager. He was subsequently promoted as Managing Director of the corporation in 1987. While serving as MD, in relation to a certain decision taken by him as part of the purchase committee, two charge memos were served on him on August 28, 2002, just two days ahead of his retirement, and he was allowed to retire without prejudice to disciplinary proceedings, and his terminal benefits like pension, gratuity and PF were withheld. The present petition was against the charge memos.
The petitioner contended that in the absence of any service rule, there was no power vested on the employer to conduct an enquiry for alleged misconduct even after his superannuation. The respondents submitted that
Unit 12 - Employee Misconduct and Disciplinary Procedure
Course: Master's in Business Administration (MBA001)
University: Manipal University Jaipur
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