1Establish a Zero-Tolerance Policy

When it comes to problem employees, your most powerful tool is a zero-tolerance policy. Establishing such a policy—and adhering to it—ensures that you will address inappropriate behavior consistently and decisively.

Adhering to the policy is crucial. A major New York corporation noted its zero-tolerance policy in defending itself against a sexual-harassment lawsuit filed by a female employee. But the company didn’t follow its own rules and a federal agency found in favor of the woman.

Your zero-tolerance policy should make it clear that the rules apply to everyone, from executives to janitors. Such a policy calls for you to give all accusations of inappropriate behavior a full airing, even if they are swirling ...

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