Examine the four (4) managerial functions and determine which one (1) you believe to be the most important

This week I will be meeting with Leslie Bentley, the Walters Aeroworks HR Manager about how she will support the plans for expansion.

Let’s head over to Leslie’s office to see how she will assist with the efforts of the company from a human resources perspective.

Leslie: Tammy, thanks for your invitation to speak regarding how Walters Aeroworks addresses human resource management.

Tammy: You’re welcome. The first thing I want to know is when does an organization start to plan out what resources it needs?

Leslie: Everything that the organization does should result from setting the vision, or the perception of marketplace needs and the ways the firm can satisfy them. Based on this information, the organization then can determine opportunities in the marketplace, and ways to differentiate its products and services from competitors. This is what got us thinking about how to expand the company to satisfy our growing customer base.

Leslie: Keep in mind that the vision should be flexible enough to adapt to changes in the business environment, as well as define the long-term relationship with customers and suppliers. We must also be mindful of the ethical conduct of the organization that Bill Wright mentioned to you several weeks ago.

Tammy: Yes, that’s correct. Bill and I had a great conversation. He explained how your organization maintains its ethical position, but can you explain why this is so important?

Leslie: I certainly can! The ethical standards that we follow start with legal regulations, but we also have to consider how the company is perceived by the public. As a result, we try to ensure that we review compensation for executives, safety and quality standards and the like. Nothing that we do should cause injury to the community or our employees.

Tammy: I see. So with that being said what else do you have to consider when it comes to ethics and employees?

Tammy: I can really see where a bad decision regarding ethics can damage the reputation of the company, and can cause employees to leave or the loss of customers. You hear a lot of negative publicity with companies these days – especially public companies.

I always say that companies need to avoid disasters because the cost and effort of cleaning corporate catastrophes can be treacherous on the wallet and people’s productivity. You really need to put guidelines in place in constantly reinforce them.

Leslie: We are very fortunate that in our entire company’s history. We have never been put into the situation of an ethical dilemma that resulted in being sued by an employee or customer, or fined by the government for wrongdoing.

Tammy: That is very impressive, considering what is currently happening in the business environment. Plus on top of that the nature of the work being done here at Walters is at a high-risk level from production all the way to the final customer using certain components that are responsible in sending them thousands of feet above the Earth. It’s quite astonishing when you think about the process.

Tammy Are there certain qualities or traits that you look for in the people that you hire in either leadership or management positions?

Leslie: Great question! There are three traits that we specifically want our leaders to possess. The first is empathy or the ability to imagine oneself in someone else’s position. The second trait is self-awareness, or being aware of one’s own behaviors, preferences, styles, biases and personalities, while the third trait most desired is objectivity, or the ability to look at things without one’s own personal biases and preferences that can cloud judgment.

Tammy: Are there any other qualities that you need to consider?

Tammy: I can see that if you do not have the right leaders in place, then the employees in the organization will not be motivated to do their work, and even worse, may actually do things that would be detrimental to the company!

Leslie: That is correct! We spend a lot of time interviewing and ensuring that potential employees will be a good match for our organization.

Leslie: As you know, corporate culture is the organization’s system of principles, beliefs and values that have been modeled by our company’s founders. The managers in our company reinforce this culture with symbols, rituals, ceremonies and stories. Most of the time, the culture can be very enduring, but may have to be changed as a result of new demands in the business environment. We hope that everyone here knows and supports the same principles, beliefs and values.

Leslie: Let’s look at how corporate culture can influence the human resource management responsibilities here at Walters Aeroworks.

If you don’t mind, click each of the icons you see on the screen to reveal the main responsibilities that play an integral part of building a corporate culture.

The first responsibility that I have here in Human Resources Management is the recruitment and selection of employees. We have to ensure that the employees we hire have the necessary skills to complete their job, or at a minimum, have the desire and ability to learn them. It is not always easy to find candidates, so I have to be very creative at times to find suitable candidates for our company. Of course, we participate in college job fairs, personal referrals and we post job openings on our own website, but we also use other websites like Monster.com to help find the right kind of people for our organization.

Tammy: Are there any special laws that you must comply with?

Leslie: Yes, we must be aware of Title Seven of the Civil Rights Act regarding discrimination. We also have to consider the Americans with Disabilities Act to provide accommodations. In addition, we have to be concerned about Affirmative Action to ensure that we consider women, minorities, people with disabilities and other protected groups as potential candidates for our job openings.

On the first day the new employee arrives on site, we spend three to four hours with an orientation program that is jointly done by our department and the department in which the employee will work. The new employee will learn about company policies regarding rights and benefits, as well as the expectations we set for behavior while employed here. We provide all of this information in a comprehensive employee handbook, so that there should not be a question about standards.

Tammy: It sounds like it is very important to set the standards right from the first day so that no one can come back later on and say that it was not explained.

Tammy: Are there different kinds of training that an employee may receive?

Leslie: There are normally three different types of training that we provide. The first type is on the job training where an employee is prepared for job duties by allowing them to perform tasks under the guidance of another experienced employee or a supervisor. We do this here with apprenticeships, because much of the work on our products is highly specialized, and some of these skills just cannot be learned any other way.

Tammy: What other kinds of training do you provide?

Leslie: We also provide classroom and computer-based training for specific types of tasks where an individual can use simulators to learn some of the skills. Periodically, we also do annual training in areas such as ethics and safety to ensure that everyone is up to date on the latest standards. With this ethics and safety annual training, reminders are sent to ensure that everyone completes these required training courses to be in compliance.

The last type of training we do is management development where we provide training designed to improve the skills and increase the knowledge of our future and current managers and executives.

Tammy: It sounds like you are very serious about ensuring that everyone in the organization receives training.

Leslie: You bet, Tammy. On an average, each employee in the company, from the janitor all the way up to Cliff Walters, receives at least forty hours of training each year. We consider this to be an investment not only in the employees, but also in the company’s future. We want employees to feel like their careers are progressing along with their understanding of certain trends and technologies.

Tammy: That’s great! I know lots of companies try to implement programs like this but it never catches steam because they don’t want to pull people away from their daily job duties. They tend to feel that the training is not productive, but they fail to look at the long-term benefits.

First, it is linked to organizational goals;

Second, it is based on objective criteria;

And third, it takes place in the form of a two-way conversation between the supervisor and the employee.

Tammy: Are you saying that you only talk about performance once a year?

Leslie: Not at all! The important thing to remember here is that there is the formal appraisal that is provided once a year. We also do periodic feedback, at least quarterly, throughout the year which gives the employee and supervisor the opportunity to take a status check on the progress of the accomplishment of objectives and identify any corrective actions that may be needed to get the employee back on track.

Tammy: That periodic feedback must be appreciated by employees so that they have a good sense of how they are doing throughout the year to avoid surprises at the annual review time.

Tammy: Does Walters Aeroworks offer any other kinds of incentive compensation packages?

Leslie: Yes, we do. We offer three other incentives to our employees:

First is profit sharing, which is awards bonuses based on company profits;

Second is lump sum bonuses and stock options giving one time case payments and the right to purchase stock in the company based on performance;

And third is pay for knowledge, which distributes wage or salary increases as employees learn new job tasks.

Tammy: That is an extremely attractive group of incentives for your employees! Do you offer your employees health, dental and other benefits?

Leslie: We do. We offer a wide range of benefits, not only including medical, dental, and life insurance where we pay a part of the premiums, but we also offer to reimburse for gym memberships, and most important of all, tuition reimbursement to encourage our employees to further their formal education. Of course, we are required by law to make Social Security payments and Medicare contributions.

Tammy: That is an impressive set of benefits that you provide your employees! What else does the Human Resources department have to do here?

Tammy: Are there different types of separation that you need to address?

Leslie: Yes, there are two different types. The first is voluntary separation. This is when an employee decides on their own to leave the company for a job with another company. When an employee gives notice of their intent to leave, we conduct an interview to determine why they are leaving to ensure that we have not done anything to make them want to leave.

Tammy: Have you had a lot of turnover here?

Leslie: In the past twelve months, we have only had one person leave, and that was because his family was moving out of state because of his wife’s promotion with her company.

Tammy: Not having high turnover is really significant, and your employees must really like working here.

Leslie: They certainly do! I have been here ten years myself, and I enjoy coming to work and feel that I am adding value to the established goals and objectives of the company. But most of all, management listens to my suggestions.

The other kind of employee separation that we are fortunate in not having to do is involuntary separation, where we have had to downsize or outsource work. Because we were very conservative in how we have expanded the company in the last fifteen years, we had not had to lay anyone off because of a downturn in our business. We also strongly believe in keeping all of the work here at this facility, and have not outsourced any work to any other company, either here in the United States or abroad.

Tammy: That is incredible that you have not been in a position where you had to terminate employees because of a downturn in business. Not many companies can say that especially after the recession we experienced in 2008?

Leslie: We are very proud of that fact, and do everything to protect the company’s investment in our people.

Display:

, human resource management objectives consist of:

One. Providing qualified, well-trained employees for the organization;

Two. Maximizing employee effectiveness in the organization; and

Three. Satisfying individual employee needs through monetary compensation, benefits, opportunities to advance and job satisfaction.

Tammy: Why can’t you just start hiring people in anticipation of the strategy going forward?

Leslie: The possible expansion strategies have large implications from a human resource management perspective. I need to know whether I need more people here at this facility or may be that I need to staff another location that may be in another state or country. If I need more people here, it is a lot easier than if I am working outside of the state or even more challenging, is having to staff an organization that is outside of the United States.

Tammy: So, you really cannot make plans until you know the decision of the company executives going forward?

Leslie: That is why I am anxious to find out our company’s future direction, so that I can get the ball rolling for hiring as soon as possible. As you may know, human resource management objectives consist of:

One. Providing qualified, well-trained employees for the organization;

Two. Maximizing employee effectiveness in the organization; and

Three. Satisfying individual employee needs through monetary compensation, benefits, opportunities to advance and job satisfaction.

All of this supports the company’s competitive strategy, so I need to have the strategy so that I can identify how many additional employees will be needed, along with the requirements for the new employees’ skillsets.

Leslie: Great question, Tammy. We have to consider that not all people in our organization are motivated solely by money or some of the incentive compensation packages that we have. Instead, we have to look at understanding human needs and how we satisfy those needs in ways that not only help our employees, but also help to move the company forward.

Tammy: So how do you guys do this then? I’m interested in your approach compared to other companies I’ve worked with in the past.

Leslie: We can use two different kinds of rewards. The first are extrinsic rewards which are related to the work itself and these are covered by pay, fringe benefits and praise which we have already talked about. The second type of rewards are intrinsic, which are feelings that are related to performing the job such as feeling proud about meeting a deadline or achieving some goal that has been set. We also can use punishment which involves a negative consequence for such behavior as being late, missing meetings or treating a customer or partner poorly.

Tammy: So how do these types of rewards tie to job performance then?

Leslie: Regardless of what motivational method we use here, it all ties back to the basic process of motivation. Here, let me show you the process.

Tammy: I see. What are some of those needs that you have identified that people need to satisfy?

Leslie: Probably the best known theory of needs is that of Abraham Maslow. I’m sure you’re familiar with this. Maslow states that there are four important assumptions:

The first dimension indicates that people’s needs depend on what they already possess;

Then it says that a satisfied need is not a motivator; only needs that remain unsatisfied can influence behavior;

Third, people’s needs are arranged in a hierarchy of importance; once they satisfy one need, at least partially, another emerges and demands satisfaction;

And fourth, all people are generally motivated by the same basic needs.

Let me show you an example of how it works.

Leslie: At the bottom of the hierarchy of needs is the desire to fulfill physiological needs. These are the basic human needs of food, shelter and clothing. On the job, we can satisfy those needs by paying salaries and wages and providing a comfortable working environment.

Tammy: Right. This makes sense. These needs sound like what everyone deems essential to just survive.

Leslie: That is correct, but more important is that you must satisfy these needs before people can move onto the next level in the hierarchy.

Tammy: Ok. I see what you’re saying here. So, What is the next one we need to talk about?

Leslie will point to each level as she explains it to Tammy

Tammy: Does this fit in with the fact that you must follow OSHA workplace standards as well as providing an overall safe place to work?

Leslie: Yup. Absolutely. We see through the entire process that everyone is following the standards set forth by OSHA.

Let’s continue up the hierarchy, shall we?

Leslie will point to each level as she explains it to Tammy

Tammy: That sounds like it would go a long way towards motivating people to perform well in their jobs.

Leslie: It certainly does! We have a very close family here with all of our employees and we work very hard to maintain that culture. With that said, you must remember that we need to keep providing motivation. Let’s look at the last two levels.

Leslie will point to each level as she explains it to Tammy

Tammy: How do you do this here at Walters Aeroworks?

Leslie: We do an Employee of the Month where people nominate a person in the company that they think has done the most for our employees and/or our customers. There is a presentation ceremony made at a company monthly meeting for the person who received the most votes. The award also comes with a five-hundred-dollar gift check for the employee to use as they want.

Tammy: That’s great! You hear a lot of companies giving rewards like this. iPads seem to be the hot ticket item for company prizes but I don’t think anyone would turn down cash. [slight laughter]

Ok, so what needs are on the highest level of the Maslow hierarchy?

Leslie will point to each level as she explains it to Tammy

Tammy: Do you offer tuition assistance for educational opportunities?

Leslie: We do! We offer employees the opportunity to earn a college degree at an accredited university, all the way from an associate degree to a doctorate! All we ask is that they stay with us for twelve months after they complete the degree. We provide the tuition and the cost of books for up to ten courses a year.

Tammy: That is unheard of in the industry that you are in. It’s quite generous with not only the tuition, but also books as they can be very expensive! How many of your employees have taken advantage of this opportunity?

Leslie: We have had forty employees finish at least one degree in the last five years! I have received my master’s degree in HR as a result of the generosity of the company. We also provide for the studying and testing for professional certifications that match up with a current job or even a future job opportunity here. Our turnover rate is less than two-percent a year, so we must be doing something right! [laughter]

Tammy: You are certainly exceeding the industry average for employee retention and I applaud all of the efforts you take here to keep your employees motivated.

There is so much potential at this company and I’m glad to be part of it for the time being.

Leslie: It was my pleasure, and I look forward to speaking with you again if you have any other questions.

And please, as usual, be sure to take part in the weekly threaded discussion.

Bye now!