Employee Discipline

Encyclopedia of Business and Finance, 2nd ed.

COPYRIGHT 2007 Thomson Gale

EMPLOYEE DISCIPLINE

Discipline refers to the actions imposed by an organization on its

employees for failure to follow the organization's rules, standards, or
policies. Traditional approaches to discipline, based on punishment,
are known to promote adversarial relationships between leaders
and followers. A more effective approach now being used by many
companies recognizes good performance and encourages
employee commitment to the organization and its goals. Once
employees see the discrepancy between actual and expected
performance, the burden is on the employee to change. Even with
more positive approaches to discipline, organizations still need to
have some form of disciplinary procedure, whether formal or
informal, that carries successively stiffer penalties for repeated or
more serious offenses.

ESTABLISHING AND COMMUNICATING WORK RULES

A first step in the disciplinary procedure is to establish work rules
that are in line with the organization's goals or objectives. These
work rules become the basis for disciplinary actions when the rules
are broken. They are generally established jointly by management,
the organization's human resources unit, and employees, who
should have an opportunity for input to ensure that rules are fair and
can reasonably be followed. Work rules are directly related to work
behavior and productivity. Employees who continually violate the
rules are candidates for a disciplinary procedure.

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Employees must know the rules that have been established. Even
though employees might have had input in the development of the
rules, it is the employer who creates the final version. The
organization's work rules should be presented in a printed format,
and each employee should be given a copy. This is usually
accomplished in the form of an employee handbook. The handbook
may have other information, but the work rules are a critical part of
it.

In some organizations, these work rules are discussed at meetings,

seminars, or training sessions. Employees with long tenure in the
organization typically review the rules periodically. Work rules
should be reviewed from time to time and, if necessary, revised. If
an organization makes major changes in the way it operates
because of new equipment, expansion or contraction, or new
ownership, it will need to revise its work rules accordingly. Small
companies with only a few employees also need to have written
work rules. Such companies may not have an employee handbook,
but it is still wise for the rules to be written and presented to each
employee. Additionally, these rules may be posted in a spot where
all employees can read them easily.

EVALUATING EMPLOYEES
In the employee evaluation process, either formal or informal,
behaviors requiring disciplinary actions are often revealed. Informal
evaluation might occur at all times as supervisors monitor
employees. Formal evaluations of each employee should be
completed regularly so that deficiencies can be discovered and
discussed with the employee. When employees violate work rules, a
change of behavior is sought. Although small companies with only a
few employees may not use a formal written evaluation, it is still
important that employees be evaluated regularly. Small companies
may find it easier to take corrective actions than large companies
because of the closeness of the supervisor to each of the work
situations. In contrast, a supervisor in a large organization might be
responsible for from fifty to one hundred or more workers.
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When employees break the rules of the organization, they often

need assistance to change their behavior so as to operate within the
established parameters. Counseling and coaching could be a part of
this process, but they usually take place prior to disciplinary actions.
If employees change their behavior as a result of disciplinary
actions and conform to the established work rules, there is no need
for further discipline. If a change in behavior does not occur, then a
harsher disciplinary procedure will need to be implemented.

The need to resort to disciplinary procedures may be lessened by

(1) smart hiring, using background checks and extensive interviews;
(2) performance evaluations with clear goals and objectives; (3)
training and development to improve skills and increase
performance; and (4) rewarding performance and goal
achievement.

USING THE DISCIPLINARY PROCEDURE

Although most employees do follow the organization's rules and
regulations, there are times when the employer must use the
discipline procedure. Frequent reasons for using the procedure
include the following:

Absence from work

Absenteeism

Abusing customers

Abusive language toward supervisor

Assault and fighting among employees

Causing unsafe working conditions

Damage to or loss of machinery or materials

Dishonesty

Disloyalty to employer (includes competing with employer, conflict of

interest)

Falsifying company records (including time records, production

records)

Falsifying employment application

Gambling

Horseplay

Incompetence (including low productivity)

Insubordination

Leaving place of work (including quitting early)

Loafing

Misconduct during a strike

Negligence

Obscene or immoral conduct

Participation in a prohibited strike

Possession or use of drugs or intoxicants

Profane or abusive language (not toward supervisor)

Refusal to accept a job assignment

Refusal to work overtime

Sleeping on the job

Slowdown

Tardiness

Theft

Threat to or assault of management representative

A formal disciplinary procedure usually begins with an oral warning

and progresses through a written warning, suspension, and,
ultimately, discharge. Formal disciplinary procedures also outline
the penalty for each successive offense and define time limits for
maintaining records of each offense and penalty. For instance,
tardiness records might be maintained for only a six-month period.
Tardiness prior to the six months preceding the offense would not
be considered in the disciplinary action. Less formal procedures
generally specify the reasons for disciplinary action as being for just
or proper cause.

Preventing the disciplinary procedure from progressing beyond the

oral warning stage is obviously advantageous to both the employee
and management. Discipline should be aimed at correction rather
than punishment. If the behavior can be corrected by a friendly talk
between the supervisor and the employee, there is less chance that
the problem will become a source of bitterness. Formal oral or
written warnings are less likely to cause animosity than would a
suspension. Of course, the most costly and least acceptable form of
discipline is discharge. Disciplinary procedures should be viewed as
a means of encouraging employees to abide willingly by the rules
and standards of the organization.
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Home Finance Finance and accounting magazines Employee Discipline

Employee Discipline
Encyclopedia of Business and Finance, 2nd ed.
COPYRIGHT 2007 Thomson Gale

EMPLOYEE DISCIPLINE

Discipline refers to the actions imposed by an organization on its

employees for failure to follow the organization's rules, standards, or
policies. Traditional approaches to discipline, based on punishment,
are known to promote adversarial relationships between leaders
and followers. A more effective approach now being used by many
companies recognizes good performance and encourages
employee commitment to the organization and its goals. Once
employees see the discrepancy between actual and expected
performance, the burden is on the employee to change. Even with
more positive approaches to discipline, organizations still need to
have some form of disciplinary procedure, whether formal or
informal, that carries successively stiffer penalties for repeated or
more serious offenses.

ESTABLISHING AND COMMUNICATING WORK RULES

A first step in the disciplinary procedure is to establish work rules
that are in line with the organization's goals or objectives. These
work rules become the basis for disciplinary actions when the rules
are broken. They are generally established jointly by management,
the organization's human resources unit, and employees, who
should have an opportunity for input to ensure that rules are fair and
can reasonably be followed. Work rules are directly related to work
behavior and productivity. Employees who continually violate the
rules are candidates for a disciplinary procedure.

Buy Action: B&H

Lowest Price Action. Today Action Lowest Price

BHPhotoVideo.com/action | Sponsored▼

Report Advertisement

Employees must know the rules that have been established. Even
though employees might have had input in the development of the
rules, it is the employer who creates the final version. The
organization's work rules should be presented in a printed format,
and each employee should be given a copy. This is usually
accomplished in the form of an employee handbook. The handbook
may have other information, but the work rules are a critical part of
it.

In some organizations, these work rules are discussed at meetings,

seminars, or training sessions. Employees with long tenure in the
organization typically review the rules periodically. Work rules
should be reviewed from time to time and, if necessary, revised. If
an organization makes major changes in the way it operates
because of new equipment, expansion or contraction, or new
ownership, it will need to revise its work rules accordingly. Small
companies with only a few employees also need to have written
work rules. Such companies may not have an employee handbook,
but it is still wise for the rules to be written and presented to each
employee. Additionally, these rules may be posted in a spot where
all employees can read them easily.

EVALUATING EMPLOYEES
In the employee evaluation process, either formal or informal,
behaviors requiring disciplinary actions are often revealed. Informal
evaluation might occur at all times as supervisors monitor
employees. Formal evaluations of each employee should be
completed regularly so that deficiencies can be discovered and
discussed with the employee. When employees violate work rules, a
change of behavior is sought. Although small companies with only a
few employees may not use a formal written evaluation, it is still
important that employees be evaluated regularly. Small companies
may find it easier to take corrective actions than large companies
because of the closeness of the supervisor to each of the work
situations. In contrast, a supervisor in a large organization might be
responsible for from fifty to one hundred or more workers.
Report Advertisement

When employees break the rules of the organization, they often

need assistance to change their behavior so as to operate within the
established parameters. Counseling and coaching could be a part of
this process, but they usually take place prior to disciplinary actions.
If employees change their behavior as a result of disciplinary
actions and conform to the established work rules, there is no need
for further discipline. If a change in behavior does not occur, then a
harsher disciplinary procedure will need to be implemented.

The need to resort to disciplinary procedures may be lessened by

(1) smart hiring, using background checks and extensive interviews;
(2) performance evaluations with clear goals and objectives; (3)
training and development to improve skills and increase
performance; and (4) rewarding performance and goal
achievement.

USING THE DISCIPLINARY PROCEDURE

Although most employees do follow the organization's rules and
regulations, there are times when the employer must use the
discipline procedure. Frequent reasons for using the procedure
include the following:

Absence from work

Absenteeism

Abusing customers

Abusive language toward supervisor

Assault and fighting among employees

Causing unsafe working conditions

Damage to or loss of machinery or materials

Dishonesty

Disloyalty to employer (includes competing with employer, conflict of

interest)

Falsifying company records (including time records, production

records)

Falsifying employment application

Gambling

Horseplay
Incompetence (including low productivity)

Insubordination

Leaving place of work (including quitting early)

Loafing

Misconduct during a strike

Negligence

Obscene or immoral conduct

Participation in a prohibited strike

Possession or use of drugs or intoxicants

Profane or abusive language (not toward supervisor)

Refusal to accept a job assignment

Refusal to work overtime

Sleeping on the job

Slowdown

Tardiness

Theft

Threat to or assault of management representative

A formal disciplinary procedure usually begins with an oral warning

and progresses through a written warning, suspension, and,
ultimately, discharge. Formal disciplinary procedures also outline
the penalty for each successive offense and define time limits for
maintaining records of each offense and penalty. For instance,
tardiness records might be maintained for only a six-month period.
Tardiness prior to the six months preceding the offense would not
be considered in the disciplinary action. Less formal procedures
generally specify the reasons for disciplinary action as being for just
or proper cause.

Preventing the disciplinary procedure from progressing beyond the

oral warning stage is obviously advantageous to both the employee
and management. Discipline should be aimed at correction rather
than punishment. If the behavior can be corrected by a friendly talk
between the supervisor and the employee, there is less chance that
the problem will become a source of bitterness. Formal oral or
written warnings are less likely to cause animosity than would a
suspension. Of course, the most costly and least acceptable form of
discipline is discharge. Disciplinary procedures should be viewed as
a means of encouraging employees to abide willingly by the rules
and standards of the organization.
Report Advertisement

The importance of having a procedurally correct performance

evaluation system receives constant emphasis. There is a need to
adopt procedural due process for performance evaluation systems
in order to rate employee job performance accurately because
those ratings might be challenged. Legal problems regarding
employee disciplinary measures can be prevented by making sure
that these measures follow prescribed guidelines, such as:
 Employees are given advance notice of disciplinary action.
 Disciplinary rules are reasonable.
 Offenses are properly investigated.
 Investigations are conducted objectively.
 Rules are enforced equally.
 Penalties are related to the severity of offenses.

LABOR UNION INVOLVEMENT

Numerous employees in the United States are represented by labor
unions. In a unionized organization, the supervisor is the primary
link between the organization and union members. The supervisor's
first responsibility is to uphold the interests of management. At the
same time, the supervisor must fulfill the contractual obligations of
management and see that the union fulfills its obligations. Collective
bargaining between management and the union determines terms
of worker contracts, legal documents that cover a specified period of
time. Union contracts include provisions for a worker grievance and
disciplinary procedures. For example, the union contract may
stipulate that an employee can be disciplined for just cause. To fulfill
this provision, management must develop a system of discipline that
supervisors must follow.

FEATURE OF AN EFFECTIVE DISCIPLINARY

PROCESS
A disciplinary procedure is directed against the worker's behavior
rather than the person. Key features of an effective process include
the following principles of disciplining workers.
1. The length of time between the misconduct and the discipline should be short. For discipline
to be most effective, it must be administered as soon as possible, but without making an
emotional, irrational decision.
2. Disciplinary action should be preceded by advance warning. Noting rule infractions in an
employee's record is not sufficient to support disciplinary action. An employee who is not
advised of an infraction is not considered to have been given a warning. Noting that the
employee was advised of the infraction and having the employee sign a discipline form are
both valid employment practices. Failure to warn an employee of the consequences of
repeated violations of a rule is a frequently cited reason for overturning a disciplinary action.
3. Consistency in the discipline procedure is key. Inconsistency lowers morale, diminishes
respect for the supervisor, and leads to grievances. Consistency does not mean that an
absence of past infractions, long length of service, a good work record, and other mitigating
factors should not be considered when applying discipline. However, an employee should
feel that under essentially the same circumstances any other employee would have received
the same punishment/penalty.
4. Supervisors should take steps to ensure impartiality when applying discipline. The employee
should feel that the disciplinary action is a consequence of behavior, not of personality or
relationship to the supervisor. The supervisor should avoid arguing with the employee and
should administer discipline in a straightforward, calm manner. Administering discipline
 without anger or apology and then resuming a pleasant relationship aid in reducing the
negative effects of discipline.
5. Ordinarily, the supervisor should administer discipline in private. Only in the case of gross
insubordination or flagrant and serious rule violations is a public reprimand desirable. Then
a public reprimand helps the supervisor regain control of a situation. Even in such situations,
however, the supervisor's objective should be to regain control, not to embarrass the
employee.
6. The supervisor should warn the employee of the result of repeated violations. Sometimes
suggestions to the employee on ways to correct behavior are beneficial. Supervisors should
be very reluctant to impose disciplinary suspensions and to discharge workers. Usually,
discipline of this degree is reserved for higher levels of management. However, even though
supervisors usually lack the power to administer disciplinary suspensions or to discharge
workers, they are nearly always the ones who must recommend such action to higher
management.
7. Finally, it is necessary to document the action taken and inform others in the organization.
Any time an organization takes disciplinary action, it must consider the possibility of an
Equal Employment Opportunity complaint. The documentation should be sufficiently detailed
that another manager at a similar level in the organization would come to the same
conclusions or least see clearly why the decision was made. Sufficient documentation does
not mean that every detail of an individual's work needs to be recorded. Rather, the
manager should keep accurate records of those elements that significantly contribute to or
hamper the work effort. In addition, this information, both positive and negative, should be
communicated to the employee either orally or in writing.

SUMMARY
If a company is to have a successful employee disciplinary
procedure, both the organization and the manager have important
roles to play. In practice, companies assume the responsibility of
establishing rules, communicating them to employees, and
developing a penalty system for enforcing them. The manager's role
in the disciplinary procedure is distinct from that of the organization,
yet the two overlap and support each other. Managers are
responsible for implementing the organization's discipline
procedure. This requires them to do several things: They must
compare their organization's rules with employee behavior to
determine whether a rule has been broken; they must determine
whether they have sufficient proof that the employee did indeed
break the rule; they must decide what corrective action should be
taken and then take it; and they must document whatever action is
taken. To the extent that all managers perform these steps
effectively, the disciplinary procedure will be effective and there is a
very good chance that employee behavior on the job can be
significantly improved.

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