Chapter 11 – How to Maintain Relationships with Your Employees and Their Representatives
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CHAPTER
How to Maintain Relationships
with Your Employees
and Their Representatives
11
Chapter 11 – How to Maintain Relationships with Your Employees and Their Representatives
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CHAPTER CONTENTS
Learning Objectives 11.3
Chapter Overview 11.2
Brief Chapter Outline 11.4
Notes for Discussion Questions 11.36
Notes for Case Questions 11.40
Chapter 11 – How to Maintain Relationships with Your Employees and Their Representatives
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LEARNING OBJECTIVES
After studying the material in this chapter, the student will be able to:
1. Explain how managerial assumptions affect human relationships with workers.
2. Explain why exercising effective leadership is so important in small business.
3. List some barriers to effective communication and show some ways to improve communi-
cation.
CHAPTER OVERVIEW,
Chapter 11 focuses on Human resource functions: human relations, leadership, and communi-
cations. Also covered are employer, employee topics of hiring, retaining, motivating, appraising and
evaluating performance, counseling troubled employees (Especially important in hiring the young veter-
ans coming home from service with seen and unseen damages.) and discipline. Defining a process as
communication is difficult, but Figure 11.1 provides six steps to assist.
Chapter 11 delves into Unions, Union-Management Relations, Organizational Problems, and
Team Management, but the emphasis remains on a standard of communication, without which the
Chapter 11 – How to Maintain Relationships with Your Employees and Their Representatives
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Finally, the internal organizing function and some basic concepts, such as delegation, are de-
BRIEF CHAPTER OUTLINE
I. GOOD HUMAN RELATIONS IS NEEDED IN SMALL FIRMS
II. EXERCISING EFFECTIVE LEADERSHIP
III. COMMUNICATING WITH EMPLOYEES AND OTHERS
A. What Happens When You Communicate?
IV. MOTIVATING EMPLOYEES
A. What Is Motivation?
V. APPRAISING AND EVALUATING EMPLOYEES’ PERFORMANCE
VI. COUNSELING TROUBLED EMPLOYEES
A. Job-Related Areas Needing Counseling
VII. IMPOSING DISCIPLINE
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VIII. DEALING WITH UNIONS
A. Laws Governing Union-Management Relations
IX. TERMINATING EMPLOYEES
X. SETTING UP THE ORGANIZATIONAL STRUCTURE
A. Some Basic Organizational Concepts
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CHAPTER OUTLINE AND TEACHING NOTES
CHAPTER OPENING PROFILE:
Cathy Anderson-Giles: Master Motivator
Cathy Anderson-Giles, CEO and owner of Equity Technologies, is a tremendous leader,
and motivator who employs a progressive management style. Anderson-Giles listens to and ac-
I. GOOD HUMAN RELATIONS IS NEEDED IN SMALL
FIRMS.
Learning Objective 1.
Explain how managerial assumptions affect human
relationships with workers.
A. HUMAN RELATIONS involves the interaction
among people in an organization.
C. A successful small business is based on practic-
E. There are five topics to address with employees:
1. Reasons for being in business.
2. Growth goals.
II. EXERCISING EFFECTIVE LEADERSHIP
Learning Objective 2.
A. LEADING, is the management function of getting
employees to do what you want them to do, by
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CHAPTER OUTLINE AND TEACHING NOTES
communicating with, motivating, and disciplining
them.
1. LEADERSHIP is the ability of one person to
influence individuals to attain goals or ob-
jectives.
III. COMMUNICATING WITH EMPLOYEES AND OTH-
ERS
A. COMMUNICATION is the transfer of meaning
from one person to another.
1. Meaning, is ideas and information.
B. What Happens When You Communicate?
1. The communication process involves:
a. Source has an idea, impression that,
b. Is encoded or translated into words, sym-
bols and body movements that,
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CHAPTER OUTLINE AND TEACHING NOTES
f. Sends some form of feedback to the
sender.
Feedback completes the process because
communication cannot assumed to have
than words), and facial expression.
Learning Objective 3.
List some barriers to effective communication and
show some ways to improve communication.
C. Barriers to Effective Communication
1. The transfer of meaning is not always effec-
tive.
2. Because of the owner’s position of author-
ity, employees tend to believe what the
D. How to Improve Communication
1. You can become a more effective communicator
by:
a. Clarifying your ideas.
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CHAPTER OUTLINE AND TEACHING NOTES
c. Considering emotional overtones as
portant.
2. New communication technologies provides
small business owners with cost savings,
access to new markets, and the ability to re-
IV. MOTIVATING EMPLOYEES
A. Motivation (Students are asked to complete the
exercise in Figure 11.2, before reading the
material below.)
1. You must use different incentives to moti-
propriate motivation.
B. What is Motivation?
1. MOTIVATION is the inner state that acti-
vates a person, including drives, desires,
and/or motives.
2. When you give your employees a reason to
3. When you say something that antagonizes,
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CHAPTER OUTLINE AND TEACHING NOTES
4. Unhappy, disgruntled or angry employees
REAL WORLD EXAMPLE 11.2
Employees at an ice cream shop reacted negatively
to something the owner did and retaliated by sabotag-
ing operations.
5. Because there are so many factors that af-
fect productivity, motivation alone is not
enough.
6. Employee performance is a product of the
employee’s ability to do the job and the ap-
C. Why Motivate Employees?
1. To attract potential employees
a. You must find and use incentives that
2. To improve performance and efficiency
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CHAPTER OUTLINE AND TEACHING NOTES
REAL WORLD EXAMPLE 11.3
Cathy Anderson-Giles (Chapter 11 Opening Profile)
treats her people well to bring out the best in them.
3. To retain good employees through the use
D. How to Motivate Employees
Learning Objective 4.
Explain how to improve employee motivation.
1. The theory of motivation (shown in Figure
11.3) is:
a. An employee has a need or needs,
E. Some Practical Ways to Improve Motivation
1. The old ways of motivating people through
“command and control” are no longer viable
options.
2. QUALITY CIRCLES (QCS) are small em-
3. A ZERO-DEFECTS APPROACH uses
4. JOB ENRICHMENT is granting workers
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CHAPTER OUTLINE AND TEACHING NOTES
5. A VARIABLE WORK SCHEDULE (also
called a FLEXIBLE WORK ARRANGE-
MENT) permits employees to work at times
other than the standard workweek of five 8–
hour days.
6. FLEXTIME is an arrangement under which
7. JOB SPLITTING occurs when employees
8. JOB SHARING occurs when a single full-
9. Small business managers may like these
programs, but not have the knowledge,
time, money, or personnel to use these
techniques.
F. Motivation Is More Than Mere Technique.
1. Successful motivation of employees is
based more on a managerial philosophy
than on using a given technique.
2. You must create an environment in your
firm, in which employees can apply them-
selves willingly and wholeheartedly to the
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CHAPTER OUTLINE AND TEACHING NOTES
REAL WORLD EXAMPLE 11.6
The famous quote by Clarence Francis, chairman of
V. APPRAISING AND EVALUATING EMPLOY-
EES’ PERFORMANCE
Learning Objective 5.
Tell why employee appraisals are used, and how they are
done.
A. PERFORMANCE APPRAISAL is the pro-
cess of evaluating workers to see how
well they are performing.
1. Performance appraisal is also called
2. Following the appraisal, rewards are then
given for good performance.
B. Performance appraisal is used to help de-
C. Employee appraisals are usually based
on:
1. Quantity and quality of work per-
formed.
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CHAPTER OUTLINE AND TEACHING NOTES
5. Safety.
6. Personal habits.
D. Appraisals are confidential, and usually
done by the employee’s direct supervisor,
E. Performance appraisals are based on the
assumption that employees have:
1. Personal abilities and qualities that
lead to,
H. You need to (as in Figure 11.5.):
1. Determine which personal qualities
an employee has that result in,
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CHAPTER OUTLINE AND TEACHING NOTES
can affect attitude and performance for
several days. The end of the day or a
special afternoon session is best, so that
VI. COUNSELING TROUBLED EMPLOYEES
Learning Objective 6.
Define counseling and discuss some areas in which it may
be needed in small firms.
A. COUNSELING helps provide people with
an understanding of their relationship with
supervisors, fellow workers, and custom-
ers.
1. Although most small firms do not
have formal counseling programs,
B. Job-Related Areas Needing Counsel-
ing
1. Health and safety. Because safety is
largely a matter of attitude, your role
2. Retirement or termination.
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CHAPTER OUTLINE AND TEACHING NOTES
a. Employees need considerable
preparation for retirement, espe-
cially with regard to benefits
coming to them.
d. You might want to help find the
worker other employment.
e. Termination is traumatic for the
worker and counseling is
needed.
f. If you are forced to terminate a
3. Stress
a. Nearly everyone feels the pres-
ence of stress.
b. Stress can arise suddenly or
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CHAPTER OUTLINE AND TEACHING NOTES
work environment that is incom-
patible with their professional
work style and/or temperament.
d. Stress becomes aggravated
f. Some people thrive on a fast-
paced, even frenzied work at-
mosphere, while others prefer a
slow-paced environment.
g. When stress becomes great
enough, it can result in JOB
BURNOUT, which is physical or
C. Personal Problems Needing Counsel-
ing
1. Many employees suffer personal
problems, which reduce productivity.
2. Two thirds of these problems are
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CHAPTER OUTLINE AND TEACHING NOTES
3. Problems that can result from sub-
stance abuse are absenteeism, acci-
dents, increases in medical ex-
penses, insubordination, thefts, and
product or service quality problems.
D. Handling Employee Complaints
1. Employees should be encouraged to
report when they think something is
wrong and needs to be corrected.
2. An effective procedure is to provide:
a. Assurance to employees that ex-
pressing their complaints will not
3. You should listen patiently, and deal
with complaints promptly, even if they
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CHAPTER OUTLINE AND TEACHING NOTES
4. You should analyze the complaint
carefully, gather facts, make a deci-
5. Detailed, written records of all com-
plaints (and disciplinary actions)
should be maintained.
VII. IMPOSING DISCIPLINE
Learning Objective 7.
Outline procedures for handling employee complaints and
imposing discipline.
A. Employees like to work in an environment
where there is discipline.
1. DISCIPLINE involves fairly enforcing
a system of rules and regulations to
B. Encouraging Self-Discipline
1. Your employees should have confi-
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CHAPTER OUTLINE AND TEACHING NOTES
know you will provide support if they
run into difficulties.
2. Therefore, you should encourage
C. POSITIVE DISCIPLINE deals with an
employee’s breach of conduct by issuing an
oral “reminder”(not a reprimand), then a written
D. How to Discipline Employees Legally
1. Most employees rarely cause prob-
lems. For the few who do, an effec-
tive disciplinary system that meets