Human Resource Policy Manual for Johnson Controls - Case Study Example

Human Resource Policy Manual For Johnson Controls of Human Resource Policy Manual for Johnson Controls Background Johnson Controls " (NYSE: JCI) is a global leader in automotive experience, building efficiency and power solutions. " (Johnson Controls Website). In doing so, they have a responsibility to work diligently with many different businesses to create the best possible solutions for their customers. The major product that they produce is innovative auto interiors that are designed to make driving more comfortable. They also offer products for buildings that include products and services that ill not only improve comfort and security but that also optimizes energy. They provide automobile and hybrid-electric batteries and systems engineering. Johnson Controls vision statement is simple: to provide a more "comfortable, safe and sustainable world" (Johnson Controls Website "Vision Statement"). They are located in Glendale, WI and have another office in San Francisco. Johnson Controls is structure as a Corporation. Selection Description EEO Description/Interpretation The Equal Employment Opportunity statement tells employees and people outside the organization how the company feels about employing a diversity of people. These statements often include not only the legal definitions of diversity like race, ethnicity or disability, but they also involve statements that are important to the company like sexual orientation, amnesty, marital status or age. Each company will have a different idea of what they should put into their EEO statements. EEO Statement Johnson Controls Johnson Controls is an Equal Employment Opportunity Employer. We believe that in order to be sure that our products and services are doing their jobs that we need to be a part of the community. We provide products and services that represent the diversity in the workplace. We look for people in every region who will work well as a team and who are involved in the global marketplace. We are dedicated to attracting, training and developing the best talent that we can find all over the world. Affirmative Action Description/Interpretation Affirmative action is similar to EEO in that it tells what the business plans to do about discrimination. This statement will generally tell the groups of people that the company will cover under their anti-discrimination clause. According to Wordnet, an affirmative action policy is "a policy designed to redress past discrimination against women and minority groups through measures to improve their economic and educational opportunities". Johnson Control Affirmative Action We work to eliminate discrimination and harassment in all its forms, and we are committed to providing equal opportunity in all of our employment practices. By valuing diversity, all our employees can fully realize their potential. At-Will Employment Description/Interpretation An employee is considered "at will" when they take a position if the employer has a this clause in their employee handbook or in their HR manual. This means that an employer can fire an employee for any reason without telling the employee why they were fired. In addition, the employee will have no real recourse in the firing once this happens. All states, except Montana are free to adopt this kind of clause for their employees. (NOLO, 2009). At Will Statement for Johnson Controls Employees at Johnson Controls understand that they are employed "at will." This means that either the Employee or the Employer can terminate the employment at any time, for any reason permitted by law, with or without cause and with or without notice. Definitions of Employee Types There are a variety of employees that work together to make a business work. All four types of employees can be employed within one company at any given time. Independent Contractors are not employees. They are generally hired as consultants or for a short period of time in order to do a specific job. They set their own hours, they pay their own taxes and pay for their own benefits. An example of this type is a consultant or a contractor who comes to the business for a specified amount of time to do a specific job (Dorothy A. Johnson Center, 2009, "Glossary-Independent Contractors"). Part-time employees are those who work less than 40 hours per week. Many employers suggest that someone who works 34 hours or less is a part-time employee. According to federal law, if a part-time employee works 1000 hours or more during the calendar year, they are entitled to the same benefits as full-time employees (U.S. Legal Definitions, 2008). Full-time employees are those that work 35-40 hours each week. Usually this individual receives benefits and is entitled to overtime where applicable. Temporary Employees are those that are hired to assist other employees in their jobs. As an example, when regular employees are on vacation or there is a particular job opening, a temporary employee may be hired to come into the company until the regular employee comes back or someone is hired. In some situations the company hires a temporary employee and if they work out, they may receive full time employment. Recruitment Methodology Explanation of Recruitment It is the policy of this company to recruit new people as well as to promote from within. The reason we recruit from outside the organization is to make sure that we are constantly bringing in new blood so that we do not get stale as a company. We like to recruit from within to bring together those people who are serious about the work and who show that they are dynamic in what they do. We recruit people from all over the world to join our team. Johnson Controls is committed to attracting, developing and training the best talent in the world. Recognizing that excellence comes in many forms and from every region, we foster a culture that promotes excellent performance, teamwork, inclusion, leadership and growth. To accomplish our business growth objectives, our employees must be involved and engaged as individuals and as team members. Our employee and leader diversity mirrors our global markets and population. We do that by hiring and working with smart, talented people who can bring us diverse perspectives and capabilities. We work to eliminate discrimination and harassment in all its forms, and we are committed to providing equal opportunity in all of our employment practices. By valuing diversity, all our employees can fully realize their potential (Johnson Controls Website). Process For Internal And External Recruitment and Recruitment Process This procedure defines the process for recruiting and hiring to fill required positions. This procedure applies to all global locations of Johnson Controls. The Hiring Manager is responsible for completing a Job Requisition and obtaining Job Requisition approval. The HR Representative/Partner is responsible for acquiring needed diversity information to complete the Job Requisition and identifying internal/external candidates. The Hiring Manager and HR Rep/Partner are responsible for defining the job need, reviewing the job requirements, agreeing on a recruitment approach, obtaining approval from the manager of internal candidates, conducting prescreening of candidates, conducting interviews and making an offer to the final candidate. Functional Department Director and/or Controller is responsible for approving any cost for the external recruitment, including the use of an external recruiting agency (Johnson Controls Website). The process that we use to develop each of our employees is listed here: 4.1 Define Job Need: The Hiring Manager and HR Representative/Partner shall document the need for additional or replacement head count by clearly defining the resource requirement and fully explaining the business justification/reason for the resource. 4.2 Review Job Requirements: The Hiring Manager and HR Representative/Partner shall ensure that the position is documented with a job description highlighting key responsibilities, reporting relationships, expected results, as well as the knowledge and skills required of candidates. It is important that each person involved in the interviewing and decision-making shares the same understanding of the job responsibilities and requirements. 4.3 Create Job Requisition: The Hiring Manager shall complete the Job Requisition form documenting the need for additional or replacement head count. This requisition shall include complete information for the particular position(s) to be filled (e.g., job title, job type, job location, salary grade, job description and qualifications, etc.). The HR Representative/Partner shall acquire needed diversity information to complete the Job Requisition. 4.4 Approval To Proceed: The Hiring Manager shall ensure the proper approval of the Job Requisition. Any Job Requisition (request for replacement or additional head count) must be approved by: (1) Division Vice President/General Manager; or (2) Functional Area Vice President; or (3) Business Unit Vice President; with budgetary approval by appropriate Finance/Treasury in order to proceed with active recruitment. For hourly manufacturing head count, the Plant/Facility Manager may be authorized to approve requisitions. 4.5 Agreement On Recruiting Approach: The Hiring Manager and HR Representative/Partner will meet prior to beginning recruitment to agree on the best method of attracting qualified applicants, e.g. internal posting only; internal posting & external recruitment, etc. The Hiring Manager & Recruiter will also agree on the recruiting budget for the approved position, which may include the cost for internet job boards postings, newspaper ads, journal/magazine ads, posting with professional associations, career fair, etc. 4.6 Identify Candidates: The HR Representative/Partner shall lead the activities required to identify a pool of qualified applicants. 4.7 Internal Candidate Available: The HR Representative/Partner shall identify those eligible Johnson Controls employees who express interest in a particular approved and posted job. Employee eligibility is determined by Human Resources policy or BOS guideline, and may include meeting posted job requirements/qualifications and a defined length of employment (e.g., an employee must have worked at a Johnson Controls facility or JC for at least one year and must have held their current position for at least one year to be eligible to apply for internally posted positions.) 4.8 Conduct External Search: The HR Representative/Partner shall conduct an external search to acquire a qualified pool of applicants for the approved position. Generally, this includes a general advertisement or job posting which may be communicated via Internet job boards, newspapers, journal/magazine ads, professional associations, career fairs, etc. The Functional Department Director and/or Controller must approve any cost for the external recruitment, including the use of an external recruiting agency. The external search shall be in accordance with legal requirements and be consistent with the Johnson Controls commitment to global diversity. 4.9 Obtain Candidate Manager’s Approval: The Hiring Manager and HR Representative/Partner must contact the employee’s current manager to discuss the employee’s availability and obtain the manager’s approval to proceed before any internal/employee candidate can be contacted or considered for an approved position. 4.10 HR/BU Directors Meeting To Determine Action: In the event the employee/candidate’s manager will not approve/release the employee for consideration for an internal job opportunity, a next level review meeting may be called between the functional department director or appropriate business leader and the HR Representative/Partner. The purpose of this meeting will be to review the business circumstance in relation to potential employee development. 4.11 Conduct Prescreen: The Hiring Manager and HR Representative/Partner may conduct a candidate prescreen in order to gain more information about the candidate’s qualifications, experience, and general suitability for the job. The purpose of prescreening is to help determine the most qualified candidates to be interviewed. This process is optional, but may be a cost effective alternative to an initial face-to-face interview in terms of time and travel. 4.12 Conduct Interviews / Selection Methods: The Hiring Manager and HR Representative/Partner shall conduct candidate interviews to assess each candidate’s match with the job specifications. Other selections methods may be used in addition to the interview or even prior to interviewing, such as Color Blindness / Acuity Testing or testing related to skills required for the position. The results of screening and interviews must be documented as a basis for decision and / or a justification for rejecting candidates. 4.13 Make Offer To Final Candidate: The Hiring Manager and HR Representative/Partner shall create an offer of employment or formal employment agreement. The offer must be within the salary grade/range identified on the Job Requisition and consistent with Total Compensation System procedure. Offer approval should follow regional processes as defined by HR. For internal candidates, an assignment letter or a written/verbal job offer may be appropriate, depending on local employment practices. 4.14 Offer Accepted: If the candidate accepts the offer of employment, a start of employment date should be mutually agreed upon by the candidate, the Hiring Manager and the HR Representative/Partner. The HR Representative/Partner shall initiate all pre-employment screening in line with regional and local standards (e.g. drug screening, background check, etc.). Records/Logs The Job Requisition and Offer Letter are stored by the HR Representative/Partner. 6.0 References Job Requisition form (Regional/Local) New Hire Processing and Employee Orientation procedure (JC-HR-PR- 03) Total Compensation System procedure (JC-HR-PR-04) Workforce Planning procedure (JC-HR-PR-01) (Johnson Controls, "Talent Acquisition") Use of Reference Checks According to Create Your Dream Job (2009), reference checks are important because they give the hiring manager an opportunity to make sure that what they see about you during the interview is true. The way that Johnson Controls uses reference checks is to make sure that "what we see is what we get." We want to know that we are hiring the best talent for the job and we use reference checks to make sure we are getting quality people. We do not use reference checks as the sole reason to hire someone but we do listen to what other employers have said about candidates. Bona Fide Occupational Qualifications (BFOQs) According to Rhodes (2005): BFOQ is a defense to acknowledged discrimination, usually based on the existence of a facially discriminatory policy, such as "individuals over the age of 50 shall not be hired as police officers." Title VII permits you to discriminate on the basis of "religion, sex, or national origin in those instances where religion, sex, or national origin is a bona fide occupational qualification reasonably necessary to the normal operation of the particular business or enterprise." This narrow exception has also been extended to discrimination based on age through the Age Discrimination in Employment Act (ADEA). This exception does not apply to discrimination based on race. (par. 2). Training and Development According to Heathfield (2009) the importance of training and development in any organization is to develop and retain employees. They suggest that a company keep in contact with the needs of the company and with the needs of the employees. Some of the training that can be available to an employee can include: updates for licensure, certification, continuing education and skills that will help the employee grow (p. 1). Goals and Objectives of Johnson Control Training Programs Johnson Control Institute is how many of our employees gain the needed training opportunities they need. The goals and objectives for training are as follows: 1. To create opportunities for employees from diverse backgrounds to learn through the expertise of experts in the field. 2. To teach employees the concept of "green living" and sustainability. 3. To promote a solid foundation for each employee to continue to be innovative in their job and in the community. Training Methodologies and Matrix of Training Effectiveness We offer online training, that is through our Johnson Institute. There are scholarships available to employees and we also have a Learning Track Program where an employee can take four courses in one tract and earn a certificate at the end of the training. We have created our courses in such a way that we know the effectiveness through them. Each employee is able to do a better job because of the trainings since we have created them with specific needs of the company in mind. We do not have a particular schelude for training so employees can take these courses at any time. Here is a list of sample programs for our Metasys learning track program: (Johnson Controls, 2009, "Metasys"). Upon successful completion of at least four courses within a Learning Track Concentration in a five year period, you will be awarded a plaque which denotes the level of your achievement (Johnson Controls, "Metasys"). Development Strategy At Johnson Controls, we hire employees who are innovative and creative. In order to make sure they continue to have fresh ideas, we make training available to anyone who wants to move forward in our company. We depend on our employees to be active in the community and to take charge of their own training. We know that Different people have different needs so we offer concentrations in Metasys Operation, Metasys Troubleshooting and Maintenance, and Facility Engineering (PMI and Msea). The courses in each program were selected through a survey of your peers as the most important learning opportunities – individuals right from your field! Diversity Business Executive Development Examples of other training programs and incentive programs include: Each year, Johnson Controls provides executive-level training for managers of diverse firms. The company offers ten fellowships to the Minority Business Executive Program (MBEP) at Dartmouth Colleges Amos Tuck School of Business and two fellowships to the University of Wisconsins Minority Executive Program. Diversity Business Training for Internal Departments and Prime Contractors Johnson Controls offers a course, Increasing Diversity Vendor Participation, for every employee who is delegated the responsibility to directly or indirectly commit the expenditure of corporation funds for the purchase of goods and services. Straight Talk Orientation Sessions Johnson Controls holds monthly “Straight Talk” orientation sessions in key cities throughout the United States. At theses meetings with potential diversity vendors, the company’s diversity business team and procurement personnel explain the pre-qualification process and review active purchasing plans. Compensation Objectives of Compensation Plan Overall, the compensation and benefits provided by Johnson Controls are designed to enable our employees to meet their basic needs, and provide the opportunity to improve their skills and capabilities for raising their social and economic opportunities. We provide a compensation package for our executives and other employees that allows them to defer a certain portion of their paychecks each year and to save for retirement. In order to make sure our compensation plans are fair, we have elected a committee to oversee compensation. Particularly, the committee has as its mission: The Compensation Committee is appointed by the Board of Directors to discharge the Boards responsibilities relating to executive succession and the compensation of the Companys executives and executive officers. The Committee makes recommendations regarding the selection and retention of elected officers. The Committee has overall responsibility for approving and evaluating the compensation plans, policies, and programs of the Company with respect to officers and executives (Johnson Controls, "Compensation Committee Charter"). Candrilli (3006) that a good compensation plan should be in line with the companys strategic objectives. He suggests that a good plan answers five questions: 1. Who should participate? 2. How much pay is appropriate? 3. For what performance? 4. When should they get paid? 5. In what form should they be paid? (p. 4). To this end, we offer a variety of compensation possibilities for our employees and we charge our compensation committee to make sure that we are aligned with what our company needs. Except in extraordinary circumstances, our employees work no more than the limits established by law. Employees receive at least the minimum wage required by law or the prevailing industry wage, whichever is higher. Employees are provided benefits and overtime compensation compliant with applicable laws. When no such laws exist, then our employees are paid at a rate at least equal to their regular hourly compensation rate. Employees receive full details regarding deductions for taxes, benefits, etc. Wages are not deducted for disciplinary purposes and are paid in cash, check form or by direct deposit. Overall, the compensation and benefits provided by Johnson Controls are designed to enable our employees to meet their basic needs, and provide the opportunity to improve their skills and capabilities for raising their social and economic opportunities. Johnson Controls Inc. salary & compensation reviews include all signing and year-end bonuses, vacation time and other perks and reimbursements that make up total compensation (Vault Career Intelligence, "Salaries"). Alignment and Competitiveness I am not sure what to put into this section. I could not find anything specific about their compensation plan. Appraisal Purpose Johnson Controls focuses on continuous improvement and development of employees skills in their appraisal process. Therefore, the appraisal data that we collect through our interview will be used to determine raises and bonuses. The supervisor will be responsible in each department for the appraisal and once completed it will be sent to the CEO of the company and the Compensation Committee with recommendations. Process The best way to determine how our employees are doing across the globe is to conduct a 360 degree appraisal. The direct supervisor will initiate this process two months before the end of the employees fiscal year. The employee will be totally involved in the process at every level. In the beginning of the year, the employee will create specific goals and objectives with their supervisor and these goals will be used as part of the assessment. References Candrilli, A. J. (2006). How to design an effective sales compensation plan. Organizational Consulting Group. Retrieved October 24, 2009 from http://www.organizationalconsultinggroup.com/media/PDF/OCG.SalesComp.Whi tepaper.V3.08-28-06.pdf. Dorothy A. Johnson Center. (2009). Nonprofit good practice guide: Promoting the power of shared knowledge. Glossary. Retrieved October 26, 2009 from http://www.npgoodpractice.org/Default.aspx. Find Your Dream Career (2009). Reference Checks: How bad references cost you jobs. Retrieved October 24, 2009 from http://www.find-your-dream- career.com/reference-checks.html. Heathfield, S.M. (2009). Training: Your investment in people development and retention. About.com. Retrieved October 25, 2009 from http://humanresources.about.com/ od/educationgeneral/a/training_invest.htm. Johnson Controls. (2009). Website. Retrieved October 26, 2009 from http://www.johnsoncontrols.com/publish/us/en.html. Johnson Controls (2008). Compensation Charter. Retrieved October 27, 2009 from http://www.johnsoncontrols.cn/publish/us/en/about/governance/board_committee _charters/compensation_committee.html. Johnson Controls. (2009). Talent acquisition. Retrieved October 24, 2009 from https://www.one-report.com/download.html/.../0136-00004937.pdf. Johnson Controls. (2009). Metasys learning contract concentrations. Retrieved October 27, 2009 from http://www.johnsoncontrols.com/publish/etc/medialib/jci/be/ johnson_controls_institute.Par.80895.File.tmp/Learning%20Concentrations.pdf. NOLO. (2009). Employment at will: What does it mean? Retrieved October 21, 2009 from http://www.nolo.com/legal-encyclopedia/article-30022.html. Princeton University. (2009). Definition Affirmative Action. Retrieved October 21, 2009 from http://wordnetweb.princeton.edu/perl/webwn?s=affirmative%20action. Rhodes, R.A. (2005). Legal discrimination in four letters: BFOQ. Halloran and Sage Attorneys at Law. Retrieved October 22, 2009 from http://www.halloran-sage.com/Knowledge/articleDetail.aspx?storyid=2055. U.S. Legal Definitions. (2008). Part time employees law & legal definition. Retrieved October 22, 2009 from http://definitions.uslegal.com/p/part-time-employees/. Vault Career Intelligence. (2009). Johnson Controls, Inc: Salaries. Retrieved October 24, 2009 from http://www.vault.com/wps/portal/usa/companies/company- profile?companyId=878&WCM_GLOBAL_CONTEXT=/wps/wcm/connect/Vaul t_Content_Library/companies+site/companies/parent_johnson+controls++inc./joh nson+controls++inc._0/johnson+controls++inc._0. Read More