Managing and Responding to Poor Employee Performance

Managing and Responding to

Poor Employee Performance

By Angela T. Hall, J.D., Ph.D.

EMPLOYEE AND LABOR RELATIONS

Instructor’s manual

PROJECT TEAM

Author: Angela T. Hall, J.D., Ph.D.

SHRM project contributor: Bill Schaefer, SPHR, CEBS

External contributor: Sharon H. Leonard

Copy editing: Courtney J. Cornelius, copy editor

Design: Jihee K. Lombardi, graphic designer

Note to HR faculty and instructors: SHRM cases and modules are intended for use in HR classrooms at

universities. Teaching notes are included with each. While our current intent is to make the materials available

without charge, we reserve the right to impose charges should we deem it necessary to support the program. However,

currently, these resources are available free of charge to all. Please duplicate only the number of copies needed,

one for each student in the class.

For more information, please contact:

SHRM Academic Initiatives

1800 Duke Street, Alexandria, VA 22314, USA

Phone: (800) 283-7476 Fax: (703) 535-6432

Web: www.shrm.org/education/hreducation

11-0087

Managing and Responding to

Poor Employee Performance

OVERVIEW

This integrated learning module with optional cases provides a comprehensive review

of employee disciplinary issues and procedures. Students will learn the intricacies

of navigating employee discipline and performance issues and will receive a primer

on legal, practical and psychological (e.g., perceived violation of the psychological

contract between employer and employee) issues they should be aware of when

counseling or disciplining an employee with performance concerns.

AUDIENCE

This module is designed for advanced undergraduate and graduate courses on special

topics in human resource management. Students should have a basic knowledge of

employee performance and appraisal principles before beginning this module.

DURATION OF MODULE

This module will take 150 minutes to complete and is designed to be taught over

three 50-minute sessions.

LEARNING OBJECTIVES

At the conclusion of this learning module, students will:

Learn discipline terminology.

Be able to identify which disciplinary procedures are appropriate to use

in speciﬁc situations.

Know how to write a Performance Improvement Plan (PIP).

Know how to impose employee discipline.

Know how to conduct an employee discharge.

TOPICS

The topics covered in this learning module include:

Strategies for dealing with poor-performing employees (including a discussion

of common performance issues like poor task performance, poor contextual

performance, absenteeism, tardiness, etc.).

Verbal counseling.

Progressive disciplinary processes.

Employment-at-will versus due-process employees.

Strategies for dealing with employee discipline in unionized and non-unionized

settings.

The effects of employee disciplinary action on witness or “bystander” co-workers.

PIPs.

Legal issues in employee disciplinary actions.

Handling employee discharge.

Alternatives to traditional disciplinary procedures/actions.

OPTIONAL CASES

The module includes four optional cases that will highlight important issues

involving employee discipline:

1. “Smiling Clowns, Inc.” involves a low-performing clown. In this case,

students are presented with a scenario in which informal methods for resolving

performance issues are most appropriate. Estimated time to complete:

20 minutes.

2. In “City Hospital,” students must draft a PIP for a low-performing accountant

who works at a public hospital. Estimated time to complete: 20 minutes.

3. In “Death Becomes You,” students face issues involving workplace violence and

employee termination. Estimated time to complete: 15 minutes.

4. The ﬁnal case, “Sierra Rain Organics, Inc.,” involves a variety of performance

issues relating to a long-term employee. Estimated time to complete: 15 minutes.

Please note that these cases were not included in the calculation of time it will take

to complete the module. Instructors should add the appropriate time to include these

optional case studies.

REQUIRED TEXT

DelPo, A., & Guerin, L. (2009). Dealing with problem employees. A legal guide.

Berkeley, CA: Nolo.

PRESENTATION OF INFORMATION

This learning module begins with an introduction to employee performance and a

discussion of common performance deﬁciencies. Because employment-at-will and

due-process employees are subject to different disciplinary processes, a discussion of

these two employee categories is included.

This learning module progresses from non-disciplinary mechanisms (e.g., informal

counseling and PIPs) to disciplinary processes. Disciplinary procedures are discussed

from least severe (verbal counseling) to most severe (termination). Progressive

discipline is also discussed.

The learning module concludes with a discussion of current topics on employee

discipline, including the importance of documentation, outcomes of disciplinary

actions (e.g., employee separation), legal issues relating to employee disciplinary

actions and employee discharges.

Before presenting this ﬁrst session, assign Chapter 1 in Dealing with Problem

Employees by DelPo and Guerin.

Topic Instructor Actions Method and Media Duration

Introduction

Introduce student to the topic of employee discipline.

Title page

Purpose

Learning objectives

Module outline

Session outline

Slides 1-6 5 minutes

Employee

Performance

Employee performance deﬁned.

Task performance

Contextual performance

Organizational citizenship behavior

Emotional labor

Strategies to maximize performance

Slides 7-9 6 minutes

Common

Performance

Deﬁciencies

Absenteeism

Tardiness

Poor attitude/insubordination

Poor task performance

Poor contextual performance

Slide 10 4 minutes

Informal Verbal

Counseling

Situations when informal verbal counseling is appropriate

Tips for conducting informal verbal counseling

Slide s 11-12 2 minutes

Performance

Improvement Plan

(PIP)

PIP deﬁned

PIP generally not considered discipline

Sample PIP

Slides 13-15 5 minutes

At-will vs. Due

Process Employees

At-will deﬁned

Exceptions to at-will:

Protected class

Public policy

Implied contract

Due process deﬁned

Just cause

Slides 15-16 3 minutes

Optional Student

Activity

Break into groups of 2-3 and make a list of three employee performance/conduct

issues that should result in verbal counseling and three employee performance/

conduct issues that should result in harsher discipline, including termination. For the

sake of this exercise, assume that the employee is a cashier at a grocery store.

Slides 17-18, including

sample student answers

in “Notes” section and

Slide 18.

5 minutes

Review

Wrap-up, questions, comments Slide 19 15 minutes

Homework

Assignment

Assign Chapters 3 and 4 in Dealing with Problem Employees by DelPo and Guerin.

Slide 20

Optional Homework

Assignment

Assign reading materials (roles) for optional case study “Smiling Clowns, Inc.” and/

or optional case study “City Hospital.”

Session 1 (50 minutes)

Topic Instructor Actions Method and Media Duration

Note: If both optional case activities are conducted, time will exceed 50 minutes.

Session Outline

Present session outline Slide 21 2 minutes

Review

Review main topics discussed in Section 1 Slide 22 2 minutes

Discipline Options

Oral warning

Written warning

Probation

Suspension

Leave with/without pay

Demotion

Termination with right to rehire

Termination without right to rehire

Slides 23-25 5 minutes

Progressive

Discipline

Progressive discipline deﬁned

Examples of a progressive discipline system

Discussion of when progressive discipline is not followed

Slides 26-27 3 minutes

Disciplinary

Processes

Mediation

Arbitration

Med-arb

Employer tribunals

Federal and state statutorily mandated procedures

Slides 28-29 3 minutes

Alternatives

to Traditional

Disciplinary

Processes

Informal verbal counseling

Training/retraining

PIPs

Employee assistance program (EAP)

Slide 30 5 minutes

Optional Case

Activity

Smiling Clowns, Inc.

Slides 31-32. Student

roles and detailed

teaching notes provided

in Appendix 2.

20 minutes

Optional Case

Activity

City Hospital

Slides 33-35. Student

roles and detailed

teaching notes provided

in Appendix 3.

20 minutes

Review

Wrap-up, questions, comments Slide 36 10 minutes

Homework

Assignment

Assign Chapter 9 in Dealing with Problem Employees by DelPo and Guerin.

Slide 37

Optional Homework

Assignment

Assign reading materials (roles) for optional case “Sierra Rain Organics, Inc.”

and/or optional case “Death Becomes You.”

Session 2 (50 minutes)

Topic Instructor Actions Method and Media Duration

Note: If optional case activities are conducted, time will exceed 50 minutes.

Outline

Present session outline Slide 38 2 minutes

Review

Review materials from Session 2 Slide 39 5 minutes

Importance of

Documentation

Litigation avoidance Slides 23-25 5 minutes

Progressive

Discipline

Progressive discipline deﬁned

Examples of a progressive discipline system

Discussion of when progressive discipline is not followed

Slide 40 3 minutes

Possible Outcomes

of Disciplinary

Actions

Employee development

Employee resentment

Employee separation

Employee withdrawal

Bystander reactions

Slides 41-42 5 minutes

Legal Issues

in Employee

Disciplinary Actions

Civil rights laws

Protected class

Whistleblower protection

Contractual rights

Expressed

Implied

Unionized workplaces

Collective bargaining agreement (Slide 44)

Slides 43-44 5 minutes

Handling Employee

Discharges

Introduction

Tips on handling discharges

Importance of fairness

Security measures

Slides 45-48 3 minutes

Optional Case

Activity

Death Becomes You

Slides 49-50. Student

roles and detailed

teaching notes provided

in Appendix 4.

15 Minutes

Optional Case

Activity

Sierra Rain Organics, Inc.

Slides 51-52. Student

roles and detailed

teaching notes provided

in Appendix 5.

15 Minutes

Review

Wrap-up, questions, comments Slide 53 12 Minutes

Session 3 (50 minutes)

Atwater, L. Waldman, D., Carey, J., & Cartier, P. (2001). Recipient and observer

reactions to discipline: Are managers experiencing wishful thinking? Journal of

Organizational Behavior, 22, 249-270.

Carlson, D., & Frone, M. (2003). Relation of behavioral and psychological

involvement to a new four-factor conceptualization of work-family interference.

Journal of Business and Psychology, 17, 515-535.

Carrell, M., & Heavrin, C. (2007). Labor relations and collective bargaining

(8th edition). Upper Saddle River, NJ: Prentice Hall.

Covington, R. (2009). Employment law in a nutshell. Chapter 2. St Paul, MN:

West Publishing.

Falcone, P. (1997). The fundamentals of progressive discipline. HR Focus, 42, 90-94.

Falcone, P (2000). A blueprint for progressive discipline. HR Focus, 77, 3-7.

Felton, T. (2009 January). Best practices in documenting employee discipline.

Workforce Management.

Grandey, A. (2000). Emotional regulation in the workplace: A new way to

conceptualize emotional labor. Journal of Occupational Health and Psychology, 5,

95-110.

Longenecker, C.O., & Post, F. (1994). The management termination trap.

Business Horizons, May-June, 71-79.

Longenecker, C.O., Sims, H.P., Jr., & Gioia, D.A. (1987). Behind the mask: The

politics of employee appraisal. Academy of Management Executive, 2, 672-678.

Locke, E., & Latham, G. (1990). A theory of goal setting and task performance.

Englewood Cliffs, NJ: Prentice-Hall, Inc.

Lieber, L. (2009). How to manage terminations and layoffs in a recession.

Employment Relations Today, 36, 95.

Lind, E.A., Greenberg, J., Scott, K.S., & Welchans, T.D. (2000). The winding road

from employee complainant. Situational and psychological determinants of wrongful

termination claims. Administrative Science Quarterly, 45, 557-590.

Muhl, C. (January 2001). The employment-at-will doctrine: Three major exceptions.

Monthly Labor Review, 3-11.

APPENDIX 1: Suggested Reading

for Instructors and Students*

Organ, D. Podasakoff, P.M., & MacKenzie, S. (2006). Organizational citizenship

behavior: Its nature, antecedents and consequences. Thousand Oaks, CA: Sage.

Ross, W.H., & Conlon, D.E. (2000). Hybrid forms of third-party dispute

resolution: Theoretical implications of combining mediation and arbitration.

Academy of Management Review, 25, 416-427.

Rudy, J. (2002). What they don’t know won’t hurt them: Defending employment-

at-will in light of ﬁndings that employees believe they possess just cause protection.

Berkeley Journal of Employment and Labor Law, 23, 307-343.

Thompson, L. (2005). Mind and heart of the negotiator (3rd edition). Upper Saddle

River, NJ: Prentice-Hall.

* Module content that is relevant to the suggested readings is noted on the “Notes” section of the appropriate PowerPoint slide.

TEACHING NOTES

Purpose

This case provides students with an introduction to addressing employee

performance issues. This case can be used to discuss low-performing employees and

strategies to address their behavior. The complexity of the issues involved in this case

is low to moderate.

This case is about an employee named Angela Watson. Angela has been working

for Smiling Clowns, Inc., for a number of years. Recently, her performance has

drastically decreased in quality.

This case provides a scenario in which formal discipline measures are probably not

necessary at this time. Rather, informal options such as the referral to an employee

assistance program (EAP), informal verbal counseling and retraining would be

more appropriate.

Setting

Smiling Clowns, Inc. provides live entertainment for children’s parties, corporate

functions and other private events. Smiling Clowns has approximately 75 employees,

many of whom work part time. The majority of the employees work as clowns, but

the company also employs jugglers, magicians and balloon artists.

Background

Angela Watson wanted to be an entertainer her entire life. She majored in theater in

college and trained under Bobo, one of the most famous clowns on the East Coast.

Although Angela does not make much money, she normally enjoys her work and sees

herself doing this line of work for the foreseeable future.

When she ﬁrst started working for Smiling Clowns, Angela told her employer that

she would go to Balloon School on weekends to learn how to make balloon animals.

Angela considers herself more as a thespian, though, and thinks that making

balloons is beneath her. Consequently, she has been putting this off, but she is

looking forward to attending Clown Camp during the summer so she can ﬁne-tune

her clown skills.

Angela seems depressed recently. She has been ﬁghting with her spouse, especially

since her husband was laid off from work last March. Money is now very tight in

Angela’s household. Angela also recently learned that her mother has cancer. To

make matters worse, her beloved cat ran away last week. Normally, Angela can put

on a smiling face when at work, but lately, this has been hard to do. On Sunday,

Angela broke into tears at a child’s birthday party. Although the parents still tipped

APPENDIX 2:

Smiling Clowns, Inc.

Angela, she sensed that they were not happy with her performance.

News of this incident made its way back to her employer. Angela’s immediate

supervisor, Chris, called her to his ofﬁce to discuss the incident. Chris likes Angela

and knows she is a good worker who is going through a tough time. Chris would

like to meet with Angela to discuss her low performance (including tardiness and

leaving parties early) and ways to improve it.

ROLES

Angela Watson, employee

Chris Thompson, supervisor

SETUP

Separate the class into groups of two. One member will assume Angela’s role and the

other member will assume Chris’ role.

TIME ALLOTTED

Allot 15 minutes for students to complete this case. Five minutes should be spent

on discussion. To expedite this activity, roles (and related reading materials) may be

assigned prior to class.

STUDENT OUTCOME

Students are asked to develop a written plan to improve performance. Students may

elect to use the attached sample PIP, but given the nature of this case (e.g., small

company, short history of poor performance), a less formal written plan is probably

more appropriate.

Possible outcomes that could be reached between the employee and employer:

1. PIP

Sample goals: Angela will reduce client complaints. She will arrive on time to

assignments 100 percent of the time. Angela will not leave assignments early.

Angela will receive a 4.5 or better average on client satisfaction surveys.

2. Additional assignments

Angela will be given extra assignments so she can make extra money to relieve

ﬁnancial stressors.

3. Additional training

Angela will be given additional training (including Balloon School) so she will

have additional skills. This will expand the types of assignments she can take.

In addition, Chris should refer Angela to the company’s EAP to help her resolve

some of her personal problems, although it would not be advisable to compel her to

call as a condition of continued employment.

ADDITIONAL DEBRIEFING QUESTIONS

1. Why do you think Angela’s performance is suffering?

Problems in Angela’s personal life seem to be affecting her performance.

2. How is emotional labor relevant to this case?

Angela must engage in emotional labor as a clown in that she must act happy

even when she is not.

3. Do you think that Angela is a “salvageable” employee?

From the facts provided in this case, it appears that Angela is salvageable at

this time. However, Chris should underscore that some of her behaviors are

unacceptable (e.g., leaving early from assignments, being late for assignments)

and will not be tolerated in the future.

SMILING CLOWNS, INC.: ROLE OF ANGELA WATSON, EMPLOYEE

Setting

Smiling Clowns, Inc., is a family-owned business with 75 employees, many of whom

are part-time workers. This business provides entertainment in the form of clowns,

magicians and balloon artists for children’s birthday parties, corporate functions and

other private events.

Background

You have wanted to be an entertainer your entire life. You majored in theater in

college and trained under Bobo, one of the most famous clowns on the East Coast.

Although you do not make much money, you normally enjoy your work and see

yourself doing this line of work for the foreseeable future.

When you ﬁrst started working at Smiling Clowns, Inc., you promised your

employer that you would go to Balloon School on weekends to learn how to make

balloon animals. You consider yourself a thespian, though, and you think that

making balloons is beneath you. So, you’ve been putting this off. You are looking

forward to possibly attending Clown Camp during the summer so you can ﬁne-tune

your clown skills.

Recently, you have been depressed. You have been ﬁghting with your husband,

especially since he was laid off from work last March. Money is very tight in your

household. You also recently learned that your mother had cancer, and to make

matters worse, your beloved cat ran away last week. Normally you can put on a

smiling face when at work, but that has been harder to do lately. Also, you have

been having a hard time getting started in the morning, and you have been 10 to 15

minutes late to your last few assignments.

On Sunday, you broke into tears at a child’s birthday party for no apparent reason.

Although the parents still tipped you, you sensed that they were not happy with your

performance. Because you were extremely upset, you left the party early.

A few days after each event, your company mails a satisfaction survey to clients to

assess your performance. The scale for the survey is “1” (poor) to “5” (excellent). For

years, you have been averaging 4.8 or better, but you don’t know what your scores

have been lately.

You received a call today from your boss, Chris. Chris wants to meet with you to

discuss your performance. He knows your job performance has been suffering, and

he wants to meet with you to come up with a written plan with respect to how you

can improve. You really do love your job, and you want to work with Chris to come

up with a plan to keep your job.

Assignment

You and Chris meet to come up with a written plan to improve your performance.

SMILING CLOWNS, INC.: ROLE OF CHRIS THOMPSON, SUPERVISOR

Setting

Smiling Clowns, Inc., is a family-owned business with 75 employees, many of whom

are part-time workers. This business provides entertainment in the form of clowns,

magicians and balloon artists for children’s birthday parties, corporate functions and

other private events.

Background

You have a ﬁve-year employee, Angela, who you once thought was one the best

clowns you have ever seen. She majored in theater in college and trained under

Bobo, one of the most famous clowns on the East Coast.

You would like for Angela to expand her skills, and you have been pushing her to go

to Balloon School so she can expand the types of parties she can do.

Recently, Angela seems down in the dumps. This is really unlike Angela, who is

normally full of energy and well-liked by clients. Recently you have received some

complaints from clients about Angela. You mail a satisfaction survey to clients about

a week after each performance. The survey allows clients to rate the performer

from “1” (poor) to “5” (excellent). Normally, Angela’s scores are nearly perfect 5s.

However, her scores have recently dropped off dramatically. You have also learned

that Angela has been late to several parties.

You want to keep Angela on as an employee, so you schedule a meeting with her to

come up with a plan to resolve Angela’s performance issues.

Assignment

You and Angela meet to come up with a written plan to improve her performance.

SMILING CLOWNS, INC.: SAMPLE PERFORMANCE IMPROVEMENT PLAN

Performance

Standard

Performance

Issue/Concern

Action and/or Support

Provided (e.g.,

Training, Retraining)

Deadline for

Attaining Goal

Outcome (Results and/

or Accomplishments and

Completion/Attainment Date)

Client Satisfaction

Survey

Average score in May

and June was 3.5

Average score for July and

August to be 4.5 or higher

August 31

TEACHING NOTES

Purpose

In this case, students learn how to write a Performance Improvement Plan (PIP).

Setting

City Hospital is a public, 500-bed hospital located in a major northern U.S. city.

The hospital caters to many indigent clients, but it is known for its strong medical

residency program and research conducted in conjunction with the medical school.

Roles

Maria Rawls, employee

Juan Gonzalez, immediate supervisor

Connie Grant, manager

Gary Tibbitts, human resource manager

Background

Maria Rawls has been working in the accounting department of City Hospital

for 18 months. Before that, she worked as an accountant in her uncle’s small

accounting ﬁrm.

While at City Hospital, Maria’s performance evaluations have been low to average.

So far, she has received three periodic performance evaluations and a 2 percent raise

that was given to all employees. Maria, however, did not receive a merit raise that

was awarded to some of the higher-performing employees in her department.

Maria has not been able to keep up with the procedures involved with the new

accounting software the hospital recently purchased. She has fallen behind with her

work despite working late. Maria must frequently consult the operating manual for

the accounting software, although none of her co-workers seem to be having the

same problems learning the new software.

Maria’s previous supervisor at City Hospital seemed more willing to work

with Maria and overlook some of her performance deﬁciencies. Maria’s new

supervisor, Juan Gonzalez, appears to have more stringent standards and has

come to the HR department requesting assistance with respect to resolving

Maria’s performance issues.

Assignment

Students are to prepare a PIP for Maria using the attached template.

APPENDIX 3: City Hospital

Setup

Separate students into groups of four. Assign each member a role (Maria Rawls, Juan

Gonzalez, Connie Grant and Gary Tibbitts).

Time allotted

Allot 15 minutes to conduct this case. Five of those minutes should be allotted for

discussion. To expedite this activity, roles (and related reading materials) may be

assigned prior to class.

Student outcome

Students are asked to develop a written PIP using the template provided.

PIP goals should include:

1. Reducing error rate to the department average or lower.

2. Learning the new accounting software.

3. Increased timeliness of all reports.

Additional debrieﬁng discussion questions

1. Was the PIP given to Maria appropriate?

It was probably legally defensible because she did have performance deﬁciencies.

There is nothing in the facts of the case to suggest that Juan was engaging in

illegal discrimination against Maria (although the facts suggest that he might not

like her). However, it would have been a better practice for Maria to have received

the PIP during her performance appraisal meeting, not after.

2. Could Juan compel Maria to get her CPA designation?

No, he could not legally do so unless it was a precondition of employment.

However, provided that the employer pays for the training,

Maria could be compelled to attend additional training as a condition for

continued employment.

CITY HOSPITAL: ROLE OF MARIA RAWLS, EMPLOYEE

Setting

City Hospital is a public, 500-bed hospital located in a major northern U.S. city.

This hospital caters to many indigent clients, but it is known for its strong medical

residency program and research conducted in conjunction with the medical school.

Background

You have been working at City Hospital for 18 months. This is your ﬁrst job after

completing your Master of Accountancy degree at State University. You are taking

the Certiﬁed Public Accountant (CPA) examination in stages and have already

completed two sections. Thus far, you have passed one section and failed

one section.

Accounting has never been your passion, but you wanted a stable profession. While

you were working on your degree, you were employed part-time as an accountant in

your uncle’s small accounting ﬁrm.

You got along really well with your previous boss at City Hospital. She gave you

work she knew that you could handle, even though your ofﬁcial job description

could have required you to perform additional (and unfamiliar to you) tasks.

However, your new boss, Juan, is not as easy going, and he passes out assignments

based on some system you have not ﬁgured out. You don’t like Juan, and you

think that he is out to get you. Also, you are having a hard time learning the new

accounting software that was recently installed by the hospital.

Earlier this week, you had a meeting with Juan to go over your recent performance

appraisal. During this meeting, Juan highlighted that you were late with 5 percent

of your weekly reports and that you had an error rate that was 2.5 percent higher

than the rest of the department. He also noted that you have not fully learned the

new accounting software. Moreover, he commented that it seems as though you are

taking a long time to obtain your CPA designation.

Today, Juan tells you that he wants to meet with you, his immediate supervisor

(Connie Grant, the manager of the accounting department) and the HR manager

(Gary Tibbitts) to discuss putting you on a PIP. Needless to say, you are quite upset

about being put on a PIP, but you realize you have no choice but to go along with it

until you can ﬁnd another job.

Assignment

You, Juan, Connie and Gary jointly develop a PIP using the template provided.

CITY HOSPITAL; ROLE OF JUAN GONZALEZ, ACCOUNTING SUPERVISOR

Setting

City Hospital is a public, 500-bed hospital located in a major northern U.S. city.

This hospital caters to many indigent clients, but it is known for its strong medical

residency program and research conducted in conjunction with the medical school.

Background

You have been working at City Hospital for four months now. You came to work for

City Hospital after working in a big accounting ﬁrm for 12 years. Overall, you think

that most of the workers are satisfactory, although you do not think they have the

same drive and passion for accounting you saw when you were working at the big

accounting ﬁrm.

You recently gave a performance appraisal to Maria Rawls, and it was not good. You

commented that she was late with 5 percent of her weekly reports and had an error

rate that was 2.5 percent higher than the rest of the department, and you noted that

she had not fully learned the new accounting software. Moreover, it bothers you that

she has not obtained her CPA designation yet.

Today, you tell Maria that you want her to meet with you, your immediate

supervisor (Connie Grant, the manager of the accounting department) and the HR

manager (Gary Tibbitts) to discuss putting Maria on a PIP.

Assignment

You, Maria, Connie and Gary jointly develop a PIP using the template provided.

CITY HOSPITAL: ROLE OF CONNIE GRANT, ACCOUNTING MANAGER

Setting

City Hospital is a public, 500-bed hospital located in a major northern U.S. city.

This hospital caters to many indigent clients, but it is known for its strong medical

residency program and research conducted in conjunction with the medical school.

Background

You have been working at City Hospital for nine years. You know there are some low

performers in the department, but your department gets the job done. There are

more than 20 people in the department, and you don’t have day-to-day contact with

many of them. Thus, you rely heavily on your two accounting supervisors, Arden

Winters and Juan Gonzalez.

Juan recently gave a performance appraisal to one employee (Maria Rawls), and it

was not good. He highlighted that she was late with 5 percent of her weekly reports

and had an error rate that was 2.5 percent higher than the rest of the department.

He also noted that Maria had not fully learned the new accounting software.

Moreover, it bothers Juan that she has not obtained her CPA designation yet.

Last week, Juan approached you and said that he wanted to give Maria a written

warning based on her performance. You think this is too extreme, so you suggested

a PIP. You are not extremely comfortable with the PIP, but you think that this

will be the only way to appease Juan. You wonder why Juan did not raise the issue

of a PIP when he reviewed Maria’s performance appraisal with her. You sense that

Juan does not like Maria, but you have no evidence to suggest that he has acted

inappropriately toward her or treated her unfairly. You personally question Juan’s

motives, but per hospital policy, Juan is entitled to request that Maria be issued a

PIP due to low performance.

Assignment

You, Juan, Maria and Gary Tibbitts (the HR manager) jointly develop a PIP using

the template provided.

CITY HOSPITAL; ROLE OF GARY TIBBITTS, HUMAN RESOURCE MANAGER

Setting

City Hospital is a public, 500- bed hospital located in a major northern U.S. city.

This hospital caters to many indigent clients, but it is known for its strong medical

residency program and research conducted in conjunction with the medical school.

Background

You are the manager of the human resource department, and you have held that

position for three years. The hospital has hundreds of employees. You personally

know only a small percentage of them.

Juan Gonzalez (accounting supervisor) recently gave a performance appraisal to one

employee (Maria Rawls), and it was not good. He highlighted that she was late with

5 percent of her weekly reports and had an error rate that was 2.5 percent higher

than the rest of the department. He also noted that Maria had not fully learned the

new accounting software.

In addition, you were told by Juan’s immediate supervisor, Connie Grant, that

it bothers Juan that Maria has not obtained her CPA designation yet. Moreover,

Connie told you that Juan wanted Maria to receive a written warning, but that

Connie suggested a PIP instead. You and Connie are not 100 percent comfortable

with the idea of giving Maria a PIP. You and Connie question why Juan did not

raise the possibility of a PIP during his recent meeting with Maria to review her

performance. You have doubts about Juan’s motives, but per hospital policy, Juan is

entitled to request that Maria be issued a PIP due to low performance.

Connie ultimately convinces you that giving Maria a PIP will be the only way to

keep Juan happy. Connie relies on Juan and her other accounting supervisor, so she

will do everything in her power to keep him happy.

Assignment

You, Juan, Maria and Connie jointly develop a PIP using the template provided.

CITY HOSPITAL: SAMPLE PERFORMANCE IMPROVEMENT PLAN

Performance

Standard

Performance

Issue/Concern

Action and/or Support

Provided (e.g.,

Training, Retraining)

Deadline for

Attaining Goal

Outcome (Results and/

or Accomplishments and

Completion/Attainment Date)

Error Rate

Error rate of

employee was

2.5% higher than

department average

Reduce error rate to

department average or lower

Three months from

date of this PIP

TEACHING NOTES

Purpose

In this case, students address the issue of how to conduct a termination.

Setting

The setting is a special effects company that provides props for ﬁlm and

television shows.

Roles

Wes King, supervisor

Stephen Carpenter, manager

Mari Wu, human resource manager

Background

The employee at issue works in the props fabrication department. Department

members are known for their artistry and creativity, in addition to their technical

and mechanical expertise. They are considered to be some of the best in their ﬁeld.

The culture of the department is quite informal, and co-workers are known for their

playful banter and pranks.

Over time, the pranks and statements of one employee escalate, and members of

the department, including his supervisor, become alarmed. It is decided that this

employee must be terminated.

Setup

Separate the class into groups of three and assign each group member one of the

roles (Wes King, Stephen Carpenter and Mari Wu).

Time allotted

Allot 12 minutes to conduct the case. Three of those minutes should be allotted

for discussion. To expedite this activity, roles (and related reading materials) may be

assigned prior to class.

Assignment

The supervisor, manager and human resource manager must meet to write a

termination letter to the employee. They must also decide how to handle the

termination (e.g., at the end of the day, with security, etc.). A sample termination

letter is provided.

APPENDIX 4:

Death Becomes You

Additional outcomes

1. Students should decide that termination must be immediate with no right

to rehire.

2. Security or law enforcement should be present when the employee is escorted

from the building.

3. The employee’s building access should be restricted, passwords should be

changed, and any corporate credit cards issued to the employee should be

immediately canceled.

DEATH BECOMES YOU: ROLE OF WES KING, SUPERVISOR

Setting

The setting is a special effects company that provides props for ﬁlm and

television shows.

Background

You are the supervisor in the props fabrication department. This is a terriﬁc place to

work. You love horror movies, and you get to work on props and animatronics used

in actual ﬁlms. Department members are known for their artistry and creativity, in

addition to their technical and mechanical expertise. They are considered to be some

of the best in their ﬁeld. The culture of the department is quite informal, and co-

workers are known for their playful banter and pranks.

Over time, the pranks and statements of one employee, Eddie Gabel, escalate.

After you verbally admonished him for his repeated tardiness, he fabricated a

working guillotine out of scrap materials and said he would like to use the guillotine

on you. About a week later, you spoke to him about reducing his scrap rate. Later

that day, he put a prop of a severed hand on your desk. After seeing the prop, you

asked him what was bothering him. Eddie replied, “You are bothering me. I wish

you were dead.”

You have received complaints from other workers that Eddie is moody and that he

often tells them that he could kill you and get away with it. You have heard from

other employees that Eddie’s wife recently ﬁled for divorce and that he just received

notiﬁcation that the bank has initiated foreclosure proceedings against him.

Today Eddie ran into your ofﬁce with a gun, pushed you down, put the gun to

your head and said that he was going to kill you. After you ﬁnally pushed him off

you, you realized the gun was a starter pistol. (You know from your industry safety

training class, though, that a point-blank shot to the head with a starter pistol can be

deadly.) As he ran out of your ofﬁce, Eddie said, “Next time it will be a real gun.”

After this incident, you immediately contacted your supervisor, Stephen Carpenter,

and HR manager, Mari Wu. The decision is made to terminate Eddie.

Assignment

You, your supervisor and the HR manager must meet to write a termination letter to

the employee. You must also decide how to handle the termination (e.g., at the end

of the day, with security, etc.).

DEATH BECOMES YOU: ROLE OF STEPHEN CARPENTER, MANAGER

Setting

The setting is a special effects company that provides props for ﬁlm and

television shows.

Background

You are the manager in the props fabrication department. This is a terriﬁc place

to work. You love horror movies, and you get to work on props and animatronics

used in actual ﬁlms. You majored in ﬁlm studies and art in college. This is your

dream job.

Department members are known for their artistry and creativity, in addition to their

technical and mechanical expertise. They are considered to be some of the best

in their ﬁeld. The culture of the department is quite informal, and co-workers are

known for their playful banter and pranks.

However, over time, the pranks and statements of one employee, Eddie Gabel,

escalate.

You have received complaints from other workers that Eddie is moody and that he

tells them that he could kill his supervisor, Wes King, and get away with it. Wes told

you last week that Eddie’s behavior was increasingly disturbing and possibly violent.

Today, Eddie ran into Wes’ ofﬁce with a prop gun, pushed Wes to the ﬂoor and put

a starter pistol to his head. Wes did not realize that the gun was a starter pistol until

after he pushed Eddie off him. As he ran out the door, Eddie said that next time it

would be a real gun.

From the safety class that all employees were required to take, you know that when

ﬁred at point-blank range to someone’s head, a starter pistol can be deadly.

After conferring with Wes and the HR manager, Mari Wu, it was decided to

terminate Eddie’s employment. You personally think that this is good idea, not only

because your employer has a zero-tolerance policy on workplace violence, but also

because Eddie’s presence and erratic behavior have been negatively affecting the

morale of the other employees.

Assignment

You, Wes and Mari must meet to write a termination letter to the employee. You

must also decide how to handle the termination (e.g., at the end of the day, with

security, etc.).

DEATH BECOMES YOU: ROLE OF MARI WU, HUMAN RESOURCE MANAGER

Setting

The setting is a special effects company that provides props for ﬁlm and

television shows.

Background

You have been the human resource manager for this company for two years. You

never thought you would work in an organization with such interesting, creative and

sometimes eccentric people. However, you like the fast-paced energy that permeates

through the organization.

The employee at issue, Eddie Gabel, works in the props fabrication department.

Department members there are known for their artistry and creativity, in addition to

their technical and mechanical expertise. They are considered to be some of the best

in their ﬁeld. The culture of the department is quite informal, and workers there are

known for their playful banter and pranks.

However, Eddie’s pranks and statements begin to escalate beyond acceptable. Today,

Eddie ran into his immediate supervisor’s ofﬁce with a prop gun, pushed him down

and put the gun to his head. As he ran out the door, Eddie said that next time it

would be a real gun.

You were contacted immediately after the incident. Your organization has a zero-

tolerance policy concerning workplace violence: All threats and other acts of violence

result in immediate termination. Thus, the decision is made to terminate Eddie.

Assignment

You, Eddie’s supervisor and the department manager must meet to write a

termination letter to the employee. You must also decide how to handle the

termination (e.g., at the end of the day, with security, etc.).

DEATH BECOMES YOU: SAMPLE TERMINATION LETTER

Dear Mr. Gabel:

On August 10, 2010, you assaulted your immediate supervisor, Wes King.

Speciﬁcally, you forced Mr. King to the ground and placed a starter pistol to his

head. Your actions were reckless and dangerous. Such behavior could have caused

serious bodily harm to Mr. King and possibly to you as well.

You have made repeated threats of violence directed to Mr. King. This type of

behavior is not tolerated in our company.

As such, we have no choice but to terminate you immediately. You are not permitted

to return to the company premises. If you have any questions regarding continuation

of company beneﬁts, you may phone or e-mail the HR department.

Sincerely,

Mari Wu

Human Resource Manager

TEACHING MATERIALS

Purpose

This case involves multiple issues in employee discipline. Students must sort through

fact and speculation to decide whether an employee should be disciplined or ﬁred.

From the wording of the scenario, students may reach different (yet feasible) results.

Setting

The setting is a fast-growing company that makes handmade, organic and earth-

friendly consumer products. Sierra Rain Organics began as a local maker of

handmade products that were sold primarily in boutiques, gift shops and specialty

stores. With the recent consumer demand for organic products, Sierra Rain has

grown rapidly, and it has repositioned itself as a leading manufacturer of wood and

organic products in the region.

Roles

Corey Williams, supervisor

Robert Royle, manager

Jessica Johnson, human resource manager

Background

Anthony Wilson is a long-time employee of Sierra Rain Organics. Over time,

Anthony’s behavior has grown more and more outrageous. Anthony is frequently

tardy and absent, but recently, Anthony’s immediate supervisor learned that

Anthony has been assigning his own work to less senior employees. Anthony’s

supervisor suspects that Anthony has been coming to work under the inﬂuence of

alcohol and that Anthony has been possibly falsifying his time sheet.

Setup

Separate the class into groups of three and assign each group member one of

the roles.

Time allotted

Allot 12 minutes to conduct the case. Three of those minutes should be used for

discussion. To expedite this activity, roles and related reading materials may be

assigned prior to class.

APPENDIX 5:

Sierra Rain Organics

Assignment

Students must sort through fact and speculation to decide if Anthony should be

disciplined or ﬁred. From the wording of the scenario, students may reach different

(yet feasible) results.

Student outcomes

Student outcomes will vary, but there is insufﬁcient evidence to warrant termination.

Examples of possible outcomes are:

1. Monitoring Anthony’s attendance.

2. Conducting an investigation into the missing tools.

3. Sending Anthony for an alcohol/drug screen.

4. Counseling/warning Anthony that he is not allowed to delegate his assignments

to other workers.

5. Developing a PIP.

6. Other employee discipline that could be supported by the available evidence.

Additional debrieﬁng questions

1. How do you handle a difﬁcult employee like Anthony?

This question mirrors the ﬁrst question asked at the beginning of Session 1.

Some possible answers are:

a. Communicate performance expectations.

b. Don’t allow poor conduct to slide. In this scenario, it seems as though

the employer tolerated Anthony’s poor behavior for a long time but never

addressed it with Anthony.

c. Keep records. From the scenario, it does not seem that Anthony’s supervisor

was good at keeping attendance records.

SIERRA RAIN ORGANICS: ROLE OF COREY WILLIAMS, SUPERVISOR

Setting

The setting is a fast-growing company that makes handmade, organic and earth-

friendly consumer products. Sierra Rain began as a local maker of handmade

products that were sold primarily in boutiques, gift shops and specialty stores. With

the recent consumer demand for organic products, Sierra Rain has grown rapidly,

and it has repositioned itself as a leading manufacturer of wood and organic products

in the region.

Background

You have worked for Sierra Rain Organics for two years. Previously, you worked for

its competitor, Holly Mist, Inc. You are committed to being earth-friendly and are

happy to be working for a company that manufactures such products.

Ever since you came to Sierra Rain, Anthony Wilson has been a thorn in your

side. Anthony is eccentric, but the founder likes him because of his new product

development ideas, which are very good. Anthony came up with the idea of the Rock

Family produce line, colored rocks that people collect. The Rock Family line seems

ridiculous to you, but the product is popular with kids and is making the company a

bundle of money. However, Anthony is frequently late, makes odd comments when

you walk by and calls you “dude.”

Recently, Anthony’s unprofessional behavior has escalated. He missed one day of

work last week, and he was absent two days this week. Earlier today, a new employee

told you that Anthony had been giving him work to do in an effort to “train” him

and “get him prepared for company advancement.” You think that Anthony is out

of line to give co-workers assignments. Moreover, you don’t think that Anthony’s

behaviors are altruistic. Rather, you think that Anthony is just plain lazy and that he

will try to get out of work he does not like to do at any cost.

When you last saw Anthony, he was in the restroom drinking something out of a

small bottle. When you asked him what he was drinking, he said, “Oh, this is my

youth elixir!” You have heard rumors that Anthony drinks alcoholic beverages at

work and that he likes to indulge in marijuana off-hours. However, you have never

sent him for a drug/alcohol screening, although you have sent other employees for

such screenings in the past.

The ﬁnal straw occurred this afternoon, when you were conducting an inventory and

found that some tools and materials last used by Anthony were missing.

You would like to have Anthony ﬁred, but you really do not know if there is enough

evidence for HR to support his dismissal.

Assignment

Meet with your manager, Robert Royle, and HR manager, Jessica Johnson, to

determine what, if any, discipline should be imposed on Anthony.

SIERRA RAIN ORGANICS: ROLE OF ROBERT ROYLE, MANAGER

Setting

The setting is a fast-growing company that makes handmade, organic and earth-

friendly consumer products. Sierra Rain began as a local maker of handmade

products that were sold primarily in boutiques, gift shops and specialty stores. With

the recent consumer demand for organic products, Sierra Rain has grown rapidly,

and it has repositioned itself as a leading manufacturer of wood and organic products

in the region.

Background

You have worked for Sierra Rain Organics since it began operations 17 years

ago. The president and founder is your cousin. You have been close friends

since childhood.

Seventeen years ago, the company was simply a manufacturer of handmade

wood products. However, over time, the company has grown and is now leading

manufacturer of wood and organic products in the region.

Anthony Wilson is a long-time employee of Sierra Rain. While you admit that he is a

bit eccentric, you and the founder like him because of his new product development

ideas, which are very good. He came up with the idea of the Rock Family line,

collectible colored rocks. This product line is very popular with kids and has been

making the company a bundle of money.

You know that Anthony’s immediate supervisor, Corey Williams, whom you

supervise, does not like Anthony. He frequently comes to you to discuss Anthony’s

“performance” issues, like being occasionally late and missing a day here or there.

However, you do not think that Anthony is late or absent any more than the other

employees who report to Corey.

Today, Corey made some more serious accusations against Anthony. He suggested

that Anthony might have stolen some tools and/or materials from the workplace, but

he had no proof. Also, he said that Anthony might drink on the job, but once again,

Corey had no proof.

Corey wants to meet with you and the HR manager, Jessica Johnston, to discuss

whether Anthony should be ﬁred. You think that the idea of ﬁring Anthony is rash

and premature, but you agree to the meeting.

Assignment

Meet with Corey Williams and Jessica Johnson to determine what, if any, discipline

should be imposed on Anthony.

SIERRA RAIN ORGANICS: ROLE OF JESSICA JOHNSON,

HUMAN RESOURCE MANAGER

Setting

The setting is a fast-growing company that makes handmade, organic and earth-

friendly consumer products. Seventeen years ago, the company was simply a

manufacturer of handmade wood products. However, over time, the company

has grown and repositioned itself as a leading manufacturer of wood and organic

products in the region.

Background

You are the HR manager for Sierra Rain Organics. Sierra Rain is a medium-sized

company of 550 employees, but just ﬁve years ago it was a “mom and pop” enterprise

with only 50 employees, most of whom were related to the president and founder.

A long-time company employee, Anthony Wilson, has been brought to your

attention by his supervisor, Corey Williams. You know that Corey doesn’t like

Anthony. Corey frequently comes to you to discuss Anthony’s “performance” issues,

like being occasionally late and missing a day here or there. However, you do not

think that Anthony is late or absent any more than the other employees who report

to Corey.

Today, Corey made some more serious accusations against Anthony. He suggested

that Anthony might have stolen some tools and/or materials from the workplace, but

he had no proof. Also, he said that Anthony might drink on the job, but once again,

he had no proof.

Corey wants to meet with you and his immediate supervisor, Robert Royle, to

discuss whether Anthony should be ﬁred. You think this is premature, but you agree

to the meeting.

Assignment

Meet with Corey Williams and Robert Royle to determine what, if any, discipline

should be imposed on Anthony.

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