Here is a list of important concepts from this chapter:

- The difference between involuntary and voluntary turnover and their effects on an organization
- How employees determine whether the organization treats them fairly
- Legal requirements for employee discipline
- Ways in which organizations can fairly discipline employees
- How job dissatisfaction affects employee behavior
- How organizations contribute to employees' job satisfaction and retain key employees

Involuntary turnover occurs when the organization requires employees to leave, often when they would prefer to stay. Voluntary turnover occurs when employees initiate the turnover, often when the organization would prefer to keep them. Both are costly because of the need to recruit, hire, and train replacements. Involuntary turnover can also result in lawsuits and even violence.

Employees draw conclusions based on the outcomes of decisions regarding them, the procedures applied, and the way managers treat employees when carrying out those procedures. Outcome fairness is a judgement that the consequences are just. The consequences should be consistent, expected, and in proportion to the significance of the behavior. Procedural justice is a judgement that fair methods were used to determine the consequences. The procedures should be consistent, unbiased, based on accurate information, and correctable. They should take into account the viewpoints of everyone involved., and they should be consistent with prevailing ethical standards. Interactional justice is a judgement that the organization carried out its actions in a way that took the employee's feelings into account - for example, by listening to the employee and treating the employee with dignity.

Employee discipline should not result in wrongful discharge, such as termination that violates an implied contract or public policy. Discipline should be administered even-handedly, without discrimination. Discipline should respect individual employees' privacy. Searches and surveillance should be for legitimate business purpose, and employees should know about and consent to them. Reasons behind disciplinary actions should be shared only with those who need to know them. When termination is part of a plant closing, employees should receive the legally required notice, if applicable.

Discipline should follow the principles of the hot-stove rule, meaning discipline should give warning and have consequences that are consistent, objective, and immediate. A system that can meet these requirements is called progressive discipline, in which rules are established and communicated, and increasingly severe consequences follow each violation of the rules. Usually, consequences range from a spoken warning through written warnings, suspension, and termination. These actions should be documented in writing. Organizations also may resolve problems through alternative dispute resolution (ADR), which helps solve problems by bringing in an impartial outsider but not using the court system. Other ways include having an open-door policy, in which managers hear out complaints, peer reviews, mediation (i.e. a neutral party outside the organization tries to help), and arbitration, which is when a professional arbitrator judge resolves the issues by making a decision. When performance problems seem to result from substance abuse or mental illness, the manager may refer the employee to an employee assistance program. When a manager terminates an employee or encourages an employee to leave, outplacement counseling may smooth the process.

Circumstances involving the nature of a job, supervisors and co-workers, pay levels, or the employee's own disposition may produce job dissatisfaction. When employees become dissatisfied, they may engage in job withdrawal, which is a set of behaviors with which employees try to avoid the work situation physically, mentally, or emotionally. This may include behavior change, as employees try to bring about changes in policy and personnel through inside action or through whistle-blowing or lawsuits. Physical job withdrawal may range from tardiness and absenteeism to job transfer or leaving the organization altogether. Especially when employees cannot find another job, they may psychologically withdraw by displaying low levels of job involvement and organizational commitment.

Organizations can try to identify and select employees who have personal dispositions associated with job satisfaction. They can make jobs more complex and meaningful - for example, through job enrichment and job rotation. They can use methods such as role analysis technique to make roles and expectations clear to the employees. They can try to establish satisfactory pay levels and communicate with employees about pay structure and pay raises. Monitoring job satisfaction helps organizations identify which of these actions are likely to be most beneficial.

This presentation described the difference between involuntary and voluntary turnover and their effects on an organization; how employees determine whether the organization treats them fairly; legal requirements for employee discipline; ways in which organizations can fairly discipline employees; how job dissatisfaction affects employee behavior; and how organizations contribute to employees' job satisfaction and retain key employees.