Recruiting Retention Plan

Question Description

Create an HR Recruiting Retention Plan by using Motors and More (as attached) as the basis for your analysis. The Recruiting Retention Plan template is attached as well. Motors and More    Recruiting Retention Plan 

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© 2007 SHRM. Don McCain, Ed.D. Society for Human Resource Management MOTORS AND MORE, INC. – A PROGRESSIVE HR CASE STUDY By Don McCain, Ed.D. Learning Objective(s) Upper-level undergraduate students will work through issues associated with developing and sustaining an HR department to support an organization facing labor shortages and high product demand. At the end of the study, students learn how to: 1. Align HR initiatives with corporate strategy. 2. Develop a complete HR organization structure, including roles and responsibilities, and then adjust the structure to support the organization. 3. Develop a basic staffing plan. 4. Develop a basic training plan. 5. Determine and support a pay and benefits plan. 6. Determine future HR requirements. CASE OVERVIEW You are hired as the HR director for the fictitious Motors and More, Inc. Motors and More, a business-tobusiness sales company, manufactures small motors and accessories for industrial and home products. The industry is highly competitive, and the company follows a prospector strategy. A prospector strategy takes advantage of new markets and products (Gomez-Mejia, Galkin and Cardy, 2001). Organizational emphasis is on growth, innovation and new product development. A prospector wants to be first to market. To respond to competitive and rapidly changing markets, prospectors have flexible, flat and more decentralized organizational structures. Motors and More is headquartered in a small southern town of 28,000 people, with a low unemployment rate of 3.1 percent. This means that demand for workers exceeds the labor supply. There is a technical school and a community college within 50 miles of Motors and More. Motors and More’s president is former military and is highly patriotic. He is committed to staying in the community. Recently, several other local companies have experienced labor organizing activities. Motors and More employs 116 people. Until you were hired, there was no HR department. Recently, the organization’s employee turnover rate has been higher than normal. The marketing and sales department continues to sell products to an expanding market. Because of this increased product demand, output must be increased by 96 percent. Eighty-eight percent of Motors and More employees are Caucasian. With the exception of one female supervisor in the customer service department, the president and all other managers are Caucasian men. Management promotions have been based on seniority. The local labor market population is approximately 48 percent minority. There is a growing Hispanic and Kurdish population that have not been accepted into the community. All the employees in manufacturing (including quality control), customer service and operations (responsible for shipping and receiving; distribution of raw materials, components parts and finished goods inventory; and maintenance and cleaning) have at least a high school degree or GED. The organization provides some skills training courses. Please refer to the organizational chart in Figure 1 for more details. 1 © 2007 SHRM. Don McCain, Ed.D. Figure 1: Motors and More Organization Chart President HR Director Staff (TBD) Finance and Accounting 1 manager, 5 professionals and 1 hourly (includes payroll) Manufacturing 1 manager and 69 employees Quality Control 3 employees Operations 1 manager 14 employees Maintenance and Cleaning 1 leader 3 employees 2 Customer Service – inbound only 1 female supervisor 5 CRS Marketing/ Sales 1 manager 9 salesmen © 2007 SHRM. Don McCain, Ed.D. DESIGNING THE HR DEPARTMENT A. Design a typical HR department and identify each HR unit. For each HR unit, provide roles/ responsibilities and job titles. Develop an organization chart of a typical HR department. B. Given the size of Motors and More, indicate which positions identified in your typical HR department should be combined or eliminated to reduce the number of HR employees. Provide new job titles and develop an organizational chart specifically for Motors and More’s new HR department. Provide the total number of staff for each HR unit. Organization Design Organizing is a basic managerial function. Organizing is the process of designing jobs, grouping jobs into manageable units, and establishing patterns of authority among jobs and groups of jobs (Griffin and Moorhead, 2006). “Organization design refers to the framework of jobs, positions, groups of positions, and reporting relationships among positions that are used to construct an organization” (DeNisi and Griffin, p. 50). Organizing combines with organization design to form an organizational structure. Using Anthony, Kacmar and Perreewe (2006) as a source, Figure 2 represents a comprehensive HR structure. Some HR professionals may argue against including organization development as a part a human resource development strategy. Nonetheless, this figure is helpful because it depicts the organizational functions that must be included in a comprehensive HR department. Figure 2: An HR Organization Chart HR (VP, Director, or Manager) Organization Development Staffing or Employment Employee or Industrial Relations HRD or Training and Development Compensation Job and Salary Administration Employee or Industrial Relations Health and Safety Benefits Administration Roles/Responsibilities and Job Titles All HR managers, regardless of their functional areas of expertise, must be able to hire, train, coach, recognize and reward performance (performance management), plan, organize, set goals, develop and implement strategies, lead employees, create and administer budgets, etc. These are responsibilities common to all managers. In addition, a decision needs to be made regarding administrative support— should it be centralized or should it be dispersed among the functional or operational areas? HR Director or Manager Roles/responsibilities  Leads and manages the department.  Develops relationships with senior management to align HR goals and strategies with those of the organization.  Scans the external environment for changes that could affect HR.  Participates in organizational planning and review sessions. 3 © 2007 SHRM. Don McCain, Ed.D. Organization Development (OD) Possible job titles: OD specialist, OD consultant Role/responsibilities  Develops relationship with internal client(s); formulates internal contract(s).  Conducts organization research, analysis and diagnosis to identify organizational issues with the goal of performance improvement. Issues may include the reward system or performance management, management style, structure, processes, tools and equipment, goal setting, etc.  Develops interventions (or contracts with consultants to develop interventions) to address issues or problems that can be solved by collecting survey data, coaching, training; provides feedback to management and employees.  Assists in creating a culture of learning, development and achievement.  Facilitates and maintains organizational change.  Supports performance management. Staffing or Employment Possible job titles: Employment manager, staffing manager, recruiting manager, staffing or recruiting specialist or coordinator Roles/responsibilities  Develops candidate pools.  Advertises job openings.  Ensures accuracy of job descriptions and specifications. Ensures they are consistent with performance management requirements.  Screens candidates using instruments as applications, résumés and references.  Conducts or contracts background checks.  Develops or contracts with a consultant to develop instruments such as tests or preemployment processes, procedures or protocols.  Conducts interviews and assesses candidates.  Extends offers or recommends candidates for hire.  Ensures legal compliance.  Secures use of temporary workforce.  Brings candidate on board and ensures that paperwork is complete.  Supports diversity and affirmative action initiatives. Human Resource Development (HRD) or Training and Development Possible job titles: Training specialist, training coordinator or administrator, facilitator, learning specialist, designer, developer, evaluator, training or performance consultant Roles/responsibilities HRD is responsible for the development of the organization’s intellectual capital. HRD professionals are involved in needs assessment; design, development, delivery and evaluation of learning experiences; development of career path models; employee orientation; etc. HRD supports the performance management process by training managers and employees on performance management. Specific roles and responsibilities are discussed below. Robinson and Robinson (1996) provide some of the roles/responsibilities by job.   Facilitator: Presents information; facilitates learning experiences; manages group work and processes; maintains the agenda; provides feedback to learners, designers and developers. Designer: Conducts needs assessment; writes goals and objectives; defines and outlines content in conjunction with the evaluator; develops evaluation plans in conjunction with the internal client; determines instructional strategies. 4 © 2007 SHRM. Don McCain, Ed.D.     Developer: Develops full content and instructional strategies; develops or secures instruments, cases, assessments, etc.; develops leaders’ and participants’ guides and materials; develops media; may conduct train-the-trainer sessions. Evaluator: In conjunction with designer and client, develops and implements evaluation plans; conducts all levels of evaluation; reports evaluation findings to appropriate persons; may assess facilitator skills. Training coordinator or administrator: Supports the delivery of learning experiences; coordinates participant materials and media; enrolls participants and sends pre-course materials; secures facilities; coordinates facilities, including hotels, training rooms and breakout rooms; tracks attendance and maintains records; promotes the course or learning experiences; ships materials; tracks expenses. Training or performance consultant and internal client (the recipient of the services) liaison: Conducts organizational analyses for internal client organization; contracts for performance improvement; consults with internal clients on performance issues; prioritizes needs; secures support (including funding; access to subject matter experts; collects audience profiles; supports learners’ participation; supports transfer of new knowledge and skills to the job; has access to data necessary to carry out these responsibilities); with client input, selects facilitators; provides feedback to internal clients; manages the interface with the HRD staff. Compensation has two primary areas—benefits and salary administration. In many organizations, payroll is a function of the accounting department. In other organizations, payroll is placed in compensation. Benefits Job titles: Benefits analyst, benefits specialist, benefits administrator Roles/responsibilities  Determines the level of benefits and packages as they relate to the internal requirements of staff versus the competition and to retain employees.  Determines the benefits to be offered.  Administers the health plan (including HMO or PPO plans).  Administers retirement plan(s), such as 401(k), defined contribution or defined benefit plans. Salary Administration Job titles: Job analyst, job and salary analyst or specialist Roles/responsibilities  With management, develops types of reward pay, including merit, incentives, bonuses, gain sharing, profit sharing, stock options and other rewards.  With management, determines pay positions relative to the competition with the goal to lead, lag or meet the competition.  Conducts job analyses and evaluations to determine job responsibilities, job specifications and pay grades.  Writes job descriptions.  Consults with management and employees on performance goals and standards; supports the performance management process.  Conducts salary surveys and recommends and implements adjustments to pay grades based on survey results.  Develops career path models.  Possibly maintains payroll. 5 © 2007 SHRM. Don McCain, Ed.D. Employee Relations or Industrial Relations Job title: Employee relations specialist Roles/responsibilities  Scans the internal environment for potential employee relations issues.  Designs (or secures), implements and analyzes employee survey results. Develops and implements plans to address identified issues.  Ensures compliance with labor laws.  Maintains labor relations in a union or union-free environment.  Writes employee handbook.  Writes and implements discipline procedures.  Provides counseling and support for employees with personal issues (EAP role).  Writes ethical policies and maintains ethical guidelines; maintains “ethics” hotline.  Produces and distributes HR publications.  In conjunction with staffing, supports relocation and outplacement services.  Works with staffing to ensure accommodations for disabled employees.  Supports diversity efforts.  Ensures employee rights are not violated. Health and Safety Job titles: Safety specialist, safety coordinator, safety administrator, industrial nurse Roles/responsibilities  Conducts inspections to ensure OSHA compliance.  Develops and implements procedures to ensure a safe work environment.  Conducts or secures safety training.  Conducts health and wellness information and training.  Files accident reports. Maintains files in accordance with OSHA requirements.  Facilitates the provision of medical care for employees hurt on the job.  Ensures that security is provided for the facility. Prospector Strategy A strategy is a plan for interacting with the competitive environment to achieve organizational goals (Daft, 2003). According to Gomez-Mejia, Balkin and Cardy (2004), the objective of a prospector strategy is to find and exploit new products and market opportunities. Organizations that use a prospector strategy are aggressive in the marketplace, highly competitive and quick to produce new products and services to be the first to market. Their key objective is to find and exploit new products and market opportunities. They operate in an environment of uncertainty and instability. Organizational practices inherent in a prospector strategy include (Gomez-Mejia, Balkin and Cardy, 2004):  Emphasis on faster innovation, flexibility and creativity.  Broad job classes with loose work planning.  External recruitment (finding candidates), with the supervisor making the decision.  Customized appraisals with multiple input used for development purposes.  Generic training.  Team-based and cross-functional training.  Decentralized pay that rewards risk taking.  Variable pay individualized and based on performance. To be flexible, organizational structures in a prospector strategy are flat in organization design, decentralized and/or team-based. 6 © 2007 SHRM. Don McCain, Ed.D. DEVELOPING THE RECRUITMENT AND RETENTION PLAN A. Given the increase in product demand, how many people will you need to hire and in what functional areas (manufacturing, operations, customer service, marketing and sales, finance/ accounting, and HR)? Provide your rationale for the proposed hiring in each unit. Consider the turnover rate. Identify the factors that could be causing turnover. Identify the costs of turnover. B. Include the types of interviews you would conduct and why. C. Develop strategies to recruit the appropriate applicants and include sources and tools used for recruiting and selection. Identify the possible areas and types of discrimination that could occur. D. What can you do to retain current employees? What are the benefits of retention? E. How will you assess the effectiveness of your recruiting efforts? The Selection Process This is a good time to review the selection process. According to Noe, Hollenbeck, Gerhart and Wright (2007), the steps in a selection process include screening applications and résumés; reviewing and testing work samples; interviewing candidates; checking references and background; and making a selection. Internal candidates would not require all of these steps. Turnover The Department of Labor uses the following formula to measure turnover: Number of separations during the month (Total number of employees at midmonth ) x 100 Separations = those leaving the organization Motors and More is not experiencing involuntary turnover, however. The organization is expanding its workforce, and the community is experiencing a labor shortage. The turnover, then, is voluntary. Some reasons for voluntary turnover include:         Retirement. Job dissatisfaction—work overload, issues with the manager or other employees, little flexibility in work scheduling, lack of challenge. Robust labor market—employees can easily find alternative employment because of the high demand for employees in the area. HR issues—competitive pay and benefits, no career path, perceived unfairness in rewards distribution. Issues related to stereotyping, discrimination and harassment. Personal or family reasons. Employee relocation outside the region. Individual values not aligned with company values. Turnover is expensive for organizations: Employee Separation Costs • Severance pay • Benefits • Unemployment insurance costs • Exit interview • Outplacement • Legal fees Recruiting Costs Selection/ Interviewing Costs Training Costs Less Direct Costs • Advertising • Recruiter’s and manager’s time • Travel (applicant and/or recruiter) • Search firm • Employee referral fees • Campus visits • Interviewing: cost of employees’ time • Cost of travel: cost of travel for applicant to the interview • Instrument development (questions, • Training new employee (orientation, job, team) • Travel for training • Trainer’s time • Lost productivity during training • Training materials • Lost productivity due to new employee’s productivity curve or the existing staff taking on more work while being less efficient/ effective while the 7 © 2007 SHRM. Don McCain, Ed.D. criteria, tests) • Reference checks • Background checks • Relocation • Pre-employment medical • expenses • Coaching time vacancy exists. • Overtime for current employees • Loss of business due to poor customer service • Not being able to take on new business due to lack of resources • Lost knowledge Equal Pay There is one supervisor who is a woman and four managers, all of whom are men. Motors and More should examine the jobs to determine if they are equal in terms of skill (experience or training), effort (mental or physical effort), responsibility (degree of accountability) and similar working conditions (physical surroundings or hazards). Is there enough difference between the positions to warrant a “supervisor” job classification and not “manager” job classification? If job responsibilities (such as outbound sales) expand, will the job classification difference still be warranted? Sex Discrimination Why is there only woman in a lower management position supervising the call center? It may appear that Motors and More believes there are certain jobs better suited for women. Was gender a factor in the hiring decision? Is stereotyping occurring? Racial/Ethnic Discrimination Motors and More is 88 percent Caucasian, and all managers are men. The local population is 48 percent minority, indicating possible discrimination. Since promotions are based on seniority, it appears that Caucasian men have been there the longest and received the promotions. Motors and More must aggressively recruit, staff and promote qualified minorities. It should also prom ...
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