Disciplinary action creates stress that can often be avoided

Formal disciplinary procedures cause considerable harm in many organizational settings. They disrupt working relationships and create stress that extends far beyond the original conflict. “The damage affects more than just those directly involved. It also places a strain on the people conducting the procedures, influences team and organizational culture in the healthcare system, and impacts reputation and profitability. Much of this is avoidable,” says Doris A. Behrens, Professor of Healthcare Management at the University for Continuing Education Krems.

In practice, disciplinary reviews are often initiated before other options have been fully explored. They are frequently triggered by risk-aversion and the wish to demonstrate compliance with rules – rather than addressing issues in a way that promotes learning, which is especially important in the healthcare sector. This fosters a culture of rigidity: compassion diminishes, learning does not occur, and constructive collaboration erodes. Although such procedures are relatively rare, they have an outsized signaling effect and shape HR culture far more than many realize.

The new publication Under Investigation: Transforming Disciplinary Practice in the Workplace (Bristol University Press, 2025) documents the wide-ranging damage caused by formal disciplinary procedures – from psychological stress and reputational risks to financial hardship and family strain. The book highlights the substantial impact of current practices in organizations. Conflict-related costs amounting to billions – estimated at around €32.4 billion annually in the United Kingdom alone – could be significantly reduced.

More effective solutions

The volume also outlines ways to redesign disciplinary practice. In her contribution, Doris A. Behrens describes how a British healthcare organization was able to significantly reduce the number of formal investigations – and thus employee absences – by pursuing informal resolution whenever possible as part of a quality-improvement approach.

Her chapter shows that revising procedures not only reduces stress but also improves team effectiveness and organizational efficiency. “The book demonstrates how companies can enhance disciplinary policies and processes and calls on the HR profession to proactively lead this change,” says Behrens.