Chapter 15
Case assignment 1
To Tell or Not to Tell: The Implications of Disclosing Potentially Damaging
Information in an Employment Reference
Highly publicized and widespread business scandals have led
to a significant increase in reference checking. While some firms do their own
checking, others turn to the expertise of reference-checking services. Until
recently, the rule for employers for responding to reference checks about their
employees was fairly simple: The less said, the better. The risk of providing
employment references to prospective employers is that former employees may sue
if your references are unfavorable and lead to job rejection or if they
constitute invasion of privacy. The employers may be liable to a former
employee for defamation if the employer communicates to a prospective employer
or other person a false statement that results in damage to the former
employee’s reputation. Defamation is commonly referred to as “slander” if the
communication is verbal and as “libel” if the communication is written.
Employers have traditionally been cautioned about relating information that is
not formally documented or for which no objective evidence exists. Thus, the
more information provided, the greater the likelihood of a defamation or
privacy invasion suit by the former employee. Awards in successful suits may
include damages for lost earnings, mental anguish, pain and suffering, and even
punitive damages.
Recent court decisions may have changed all of that or at
least created confusion for employers about what to disclose. If an employer
gives a positive reference for a fired employee, the employee could sue for
wrongful termination. In situations where the employer knows that a former
employee has a history of criminal violence or extremely aggressive behavior,
the employer may have a legal obligation to provide such information to a
prospective employer. Questions arise as to what to do if you are not sure that
the information about the previous employee is true. The risk of remaining
silent is that you could be sued for negligently failing to disclose the
information if the former employee were to harm someone on the next job. On the
other hand, you could be sued for defamation if you do disclose the information
and the former employee can successfully establish that it is not true.
Some attorneys recommend that companies have employees who
are leaving the organization sign a form releasing the employer from any
liability for responding truthfully during the course of giving references. All
inquiries for references should be handled through an established point of
contact, and only written requests for references should be considered. Only
accurate and verifiable information should be reported.
Activities:
1. Make
a list of types of statements that a former employer should generally avoid
making when giving employment references.
2. Write
an organizational policy that addresses the appropriate guidelines for giving
employee references. Include statements concerning appropriate content and the
manner in which such information should be issued.
3. Formulate
a legal argument that presents the conflict between the potential employer’s
right to know and the previous employer’s right to avoid possible defamation
charges. Present both sides in a short written report or presentation.
Case Assignment 2
Summary
Imagine, solve, build, and lead. GE considers those four
verbs as the most important in being part of its team. “Bringing good things to
life” begins with offering opportunities to applicants who have the vision,
energy, and confidence to strive for excellence. Success for GE, as for every
other company, begins with using the interview process to provide the
perspective for hiring well. What do you think GE looks for in applicants it
interviews?
GE: Do You Have What It Takes?
Imagine, solve, build, and lead—four bold verbs that express
what it is to be part of GE. Known for its demanding high-performance culture,
GE also recognizes the value of work/life flexibility in helping employees feel
fulfilled both professionally and personally. GE is made up of 11 technology,
services, and financial businesses with more than 300,000 employees worldwide.
The corporation heads the list of Top 20 Companies for Leaders and strives to
create a balance between the value that employees contribute to the company and
the rewards offered in return. GE views its size as strength, not a deterrent,
in encouraging its employees to take risks and think outside the box.
At GE, good ideas and a strong work
ethic are encouraged, with company values based on three traditions: unyielding
integrity, commitment to performance, and thirst for change. GE seeks qualified
applicants who are willing to learn the skills necessary for company success.
Some candidates are hired directly into leadership development programs that
combine work experience with education and training. The Risk Management
Leadership Program develops risk management leaders through a combination of
rotation in various risk management positions and education in state-of-the-art
risk management techniques. The Global Leadership Development Program grooms
international leaders through a combination of global assignments and
management training.
Diversity isn’t just a noble idea
at GE but an ongoing initiative, evidenced by the fact that women make up 35
percent of entry-level full-time corporate training programs hires. Minorities
make up about 30 percent. GE’s website proclaims its firm commitment to
diversity and team building: “We recognize the power of the mix, the strength
that results from successful diversity. Our business and workforce diversity
creates a limitless source of ideas and opportunities.” GE recognizes the
“power of the mix” and the strength that results from inclusiveness. In an
atmosphere of inclusiveness, all employees are encouraged to contribute and
succeed. Former CEO and business legend Jack Welch offers the following career
advice to anyone looking for the right job: “Choose something you love to do,
make sure you’re with people you like, and then give it your all.”
At GE, “bringing good things to
life” begins with offering opportunities to those who have a vision and the
energy and confidence to pursue it. Vice President and chief diversity officer
Deborah Elam is pursuing and steering efforts to globally develop and execute
GE’s strategies to promote internal diversity, flexibility and inclusion. As
vice president and chief diversity officer, Deborah Elam steers efforts to globally
develop and execute GE’s strategies to promote internal diversity, flexibility,
and inclusion.
Upon receiving her bachelor’s
degree, Elam
joined GE in 1989 as a human resources intern. The company brings in hundreds
of interns each year, offering 65 percent of them full-time positions. While at
GE, she earned a master’s degree in public administration that helped her as
she worked her way up the company ladder. The learning culture at GE is
promoted through a corporate leadership institute, business training centers,
and leadership best practice sharing. The company believes that the best ways
to stay competitive are to share intelligence across the organization and
foster learning around the changing demands of the marketplace.
While GE’s diversity initiative
started as a U.S.
activity, the program was expanded and refocused a few years ago and embodied
in the slogan “global employer of choice.” “No matter where we work or do
business, we want to attract and retain the very best talent,” explains Elam . “Diverse
representation is clearly important around the world,” Elam continues.
“In the U.S. it may be women
and U.S.
minorities. In Europe it may be having a
pan-European leadership team.” With nearly 40 percent of the company’s sales
taking place outside the United
States , GE recognizes the importance of
producing diverse, global business leaders. The company is dedicated in its
strong efforts to make sure everyone in the company has the opportunity to
succeed and grow.
Diversity is a strong part of GE’s
recruitment effort, and the company strives to be reflective of the markets
served. GE presently sponsors four employee affinity networks: the African
American forum, the women’s network, the Hispanic forum, and the Asian Pacific
American forum. A fifth initiative, the Native American network, is in its
infancy. Activities for all the networks include mentoring, coaching,
networking, and creating opportunities that bring members in contact with
senior GE leaders. Participation in a network is voluntary, but each network is
viewed as an investment in people, and those who get involved get noticed.
“We’ve seen the results: getting more leaders into the pipeline,” says Elam .
Work/life issues are also important
to GE. Onsite daycare and flexible work arrangements are examples of benefits
designed to aid employees in being their best, both at home and in the
workplace. Bringing good things to life” at GE begins with offering
opportunities to applicants who have the vision, energy, and confidence to
strive for excellence. Success for GE, as for any other company, begins with
hiring well and then developing employees effectively to pursue the vision of
the organization. GE has repeatedly appeared among the top ten of Fortune
magazine’s “America ’s
Most Admired.” Studies of the ten most admired companies reveal that they
attract far more applicants than they need, by an even greater ratio than
Fortune’s 100 Best Companies to Work For. To find out why GE has repeatedly
received the most admired designation, go to
http://fortune.com/worlds-most-admired-companies/
explore the articles, looking for the key areas and methodology used to rank companies.
http://fortune.com/worlds-most-admired-companies/
explore the articles, looking for the key areas and methodology used to rank companies.
Short Essay Responses
1.
What
assessment factors are considered in determining the “America ’s Most Admired” award winners?
2. Using the assessment factors used in the
award process as a guide, compose a list of questions that you might ask during
an employment interview to determine the respectability of the company with
which you are interviewing.
3. Visit the GE website to learn about some of
the company’s plans to promote management diversity. Click Here for GE Diversity Blog Posts You may choose to visit
any one of the network forums: Women, African, Asian, or Hispanic. Summarize
your findings in a short report.
4. As GE uses focused
strategies to get more minority employees into the management pipeline, how can
they assure that the traditional white male constituency is not shortchanged?