This is a process initiated by management. Management appoints a chairperson to decide whether an employee is guilty of an alleged act of misconduct and, if so, what the appropriate sanction should be. Depending on the disciplinary code of the company, the chair of the disciplinary may either determine the sanction, or can make a recommendation as to a sanction, which is usually ratified by management.

Organisations usually use an internal manager to chair the enquiries. However, employers are increasingly using external chairpersons because they are independent and credible. In some cases, organisations are using an internal manager to chair a hearing, and an external chair for the appeal hearing.