Human Resource Management Policies - Essay Example

Running Head: HR Policies Human Resource Management – Policies By ________________________ 01 March Human resource management is the key to success of organizations ever since its importance has known. Most of the organizations have human resource policies in place which have been viewed employee advocate in organization. Jackson and Robert (2007:12) states that HR professionals spend considerable time on crisis management dealing with employee problems related to work and non work ensuring fair and equitable treatment for employers regardless of personal background. The operational role of HR professionals is to cooperate with the operating managers, to identify and implement required programs and policies in the organization providing equal employment opportunity, filling the current openings through interviews, training, resolving safety problems and providing benefits in wages and other increments. As a strategic human resource consultant for 1995 Auto Corporation based in Central Colorado, a company manufacturing emerging lighting systems for first responder vehicles, a HR policy needs to be put in place to resolve the issues of human resource and employee grievances need to be addressed with regard to extensive time off by employees and to develop a leave policy in consideration to employer and to extend harmonious relationship between employer and employees. Asking for extensive off by employees R. Shaffer has been operating as the sole proprietor of 1995 Auto Corporation for 18 months and used the services of her family members to help her operate in the business, because of which she didn’t felt it important to apply for unemployment insurance, purchase a general liability insurance policy or workers compensation policy. However with increase in the business operations, the company opted for aggressive hiring strategy due to which the company now has 88 unionized and 22 non unionized employees. Despite the growth in business operations and employee strength, the company does not has dedicated human resource cell and the activities pertaining to HR are managed by Production Operations Manager who has limited knowledge with regard to HR policies, practice and regulation which over the time resulted in employee grievances. The present issue is concerned with extended time off from work by most of the employees and the owner expresses inability to sanction the same due to effects on productivity. However, it is not known whether the employees who requested for the extensive time off, are unionized or non-unionized. Every employer within US has to abide by the rules and regulations set in the Family and Medical Leave Act of 1993. The FMLA applies to all public agencies, including state, local and federal employers, local education agencies and private sector employers who employed 50 or more employees in 20 or more workweeks in the current or preceding calendar year and who are engaged in commerce or in any industry affecting commerce. This statement makes it clear that 1995 Auto Corporation is part of the FMLA as it employs over 100 employees working throughout the year which makes it necessary to comply to the rules and regulation of FMLA. It is further stated that interfering with, restraining, or denying the exercise of any rights and responsibilities provided under FMLA is unlawful. FMLA may enforce, investigate the complaints by the US Labor Department Employment Standards Administration, Wage and Hour Division and unresolved violations may be brought in the court to compel compliance. The law also enables the eligible employee to bring private civil action against an employer for violations. (www.hr.unlv.edu) According to FMLA, Sec 101 (1) ‘eligible employee’ means an employee who has been employed and working for at least 12 months or 1250 hours in the previous 12 months in the firm.(www.dol.gov) Regarding leave application of Employee #1, as per the FMLA, Sec 102 (a) (1) the employer must grant an unpaid leave of 12 workweeks during any 12 month. The employee #1 has requested leave to take care of her terminally ill mother in law and has asked for three months leave which is applicable under FMLA Sec 102 wherein leave can be sanctioned to a total of 12 workweeks or 3 months to take care of the spouse or a son, daughter or parent with serious health conditions along with certification issued by health care provider to support the claim of leave entitlement as mentioned in Sec 103 (a). Thus employee#1 is eligible to be entitled the leave up to 12 weeks so that she could take care of her terminally ill health mother in law on condition that she presents certified medical document from health care provider. (www.dol.gov) Similarly Employee #2 is also eligible to leave entitlement under FLMA as he has completed the required 12 months of employment as per Sec 101 and is eligible to 12 weeks of leave for the reasons mentioned in Sec 102 wherein the employee considerably fits in the category as his wife has just given birth to a baby. According to Sec 102 (a) eligible employee can claim unpaid leave up to 12 weeks for taking care of newly born baby. In view of these laws, the employee #2 request for six week leave should be sanctioned so that he can take care of his newly born baby. (www.dol.gov) Regarding employee #3, it is to mention that at first instance she is not an eligible employee as she has not completed 12 months of service and her attendance is unpredictable. Moreover she has already used her sick leaves due to health problems. As she does not comply with the conditions prescribed under FMLA, she is not entitled to six weeks leave. In case of employee #3, the company can sanction him leave by looking into her working hours during the seven months. If she has completed 1250 hours of work during those seven months, the company can, if possible, entitle her six weeks unpaid leave. (www.dol.gov) If the employer found violating Sec 105, shall be liable to any eligible employee affected for damages equal to the amount of any wages, salary, employment benefits or other compensation denied to employee, the interest on the total amount, and equal relief that may be deemed appropriate including employment, reinstatement and promotion. (www.dol.gov) Cumming and McCain (2003:59) mentioned some best practices under HR policy regarding leaves by making every qualifying absence as FMLA leave, designate and provide notices as required in FMLA, providing FMLA training, maintaining separate confidential records, recording all time off from work related to FMLA and Non FMLA and establish and enforce a maximum leave of absence. Apart from these polices, the company can also improve its sick leave policy by combining all leaves like holidays, day offs, floating days and sick days into one unit of leave which an employee can use the way he wants. Such policy would not affect the organization financially and production will continue at the same pace as it was earlier thus motivating the employees to work on holidays and the employees may even not use leaves under FMLA due to loss of pay. Development of Leave Policy for 1995 Auto Corp The leave policy does not exist in 1995 Auto Corp and employees working in the company are entitled for seven days leave period. There is a need to develop leave policy which will further strengthen the human resource in the organization. The leave policy is prepared viewing various laws and enactments adopted by government for the benefit of the employees. As stated by the US Department of Labor, leave benefits allow the employee to take some time off from work and it is employee and employer to decide whether the leave is paid or partially paid or unpaid leaves. (www.dol.gov) There are various types of leaves and it is necessary to prepare the leave policy covering all areas of leave. The following is the proposed leave policy for 1995 Auto Corporation which has 88 unionized employees and 22 non unionized employees which may enhance the production of company and create a sense of satisfaction among the employees creating more efficiency. The following leave policy is hence recommended for the better management of the company. 1) Leave Eligibility; An employee will be eligible for leave, if he/she has completed the minimum of 12 months work period or at least 1250 hours in the past 12 months, complying with the provisions of FMLA. (www.dol.gov) In case of differently abled employee, he/she may be entitled to leave if there is no other effective reasonable accommodation and employer is not affected by the leave. (Cumming and McCain, 2003:59) 2) Leave Benefits – a. Paid Leave or Sick Leave – the eligible employee will be entitled to 15 days of paid leave throughout the year, which can be taken by the employee any day throughout the year. b. Family and Medical Leave – the employee is entitled to such leave if he/she fulfills all the criteria mentioned under para (1) above, a period of 12 weeks for reasons mentioned in Sec 102 of FMLA of 1993 c. Funeral Leave – such leaves are unpaid and will come in agreement between employee and employer at the latter’s discretion. d. Holidays, Personal leave and Vacations – such days will not be paid as specified under Fair Labor Standards Act (FLSA) and benefits related to holidays will solely be the decision of the employer. e. Jury Duty – those days wherein employee has not worked will not be eligible for payment unless they are paid leaves, however, benefits related to such periods will solely be the decision of the employer. 3) Notice – In order to be entitled to leave, the eligible employee should apply 30 days before the date of leave period, in case of planned leave, whereas in case of other emergency like family, medication, death, etc, it is up to the discretion of management to take the decision in best interest. 4) Job Restoration – a. Employees after returning from the sanctioned leave period will be restored in his or her original job or to an equivalent job with equivalent pay, benefits and other employment terms and conditions. b. Whereas in case of employees returning after unsanctioned leave will be placed after the decision of the management. 5) Pay – With regard to pay, if the eligible employer has taken paid leave or sick leave, the number of days will be paid accordingly and if the leaves come under the remaining categories other than the above, payment for the leave period will not be made by the employer. 6) Benefits – a. Health care – the benefits related to healthcare will be maintained by the employer when the employee is on leaven b. Insurance – insurance benefits will also be maintained by the employer during the period of leave. Insurance benefits regarding the pension policies, etc. c. And all such benefits, which has been provided by the company to the employee along with others will be maintained during the period of leave. d. The employer has the right to recover to premium paid under above benefit programs towards employee during his period of leave, if he or she does not return back to work after the expiry of leave period. (www.dol.gov) Block and Wolkinson (1996:217) mentioned the 1964 Civil Rights Act which provides for equal employment opportunity. This does not supports the aggressive hiring strategy of 1995 Auto Corporations because R. Shaffer has employed her relatives in the business so as to avoid being a party to the government policies related to employment benefits. According to Douglas Renwick (2003), the notion that HR is more focused on delivering business needs but HR can also adopt several roles like acting as business partner, change agent, administrative expert and employee champion and the major responsibility of HR is to measure the effectiveness of business in terms of competitiveness rather than employee champion. Employment law is mainly related to provide benefits to employee rather than employers and most of the time are attacking the employers and making amendments in the existing policies for the welfare of the employee. Whereas HR policies deal with the extent to which there should be convergence or divergence. HR policies are necessary and important for businesses to remain competitive with their employment offering in the market place, to attract and retain high quality staff. (Michael Armstrong, 2006:210) Conclusion 1995 Auto Corporation requires a strong human resource management cell and stronger HR policies in order to address the existing grievances that are surrounding the management of the company. The company needs to comply with the Title VII of Civil Rights Act to provide equal employment opportunity in place of aggressive hiring strategy and provide employment benefits like healthcare, insurance, paid leaves, etc. Compliance to the above leave policy will encourage the employees to work with more determination and motivation. HR policies are very important in today’s organization as they are directed towards the benefit of employees in general but formulated to achieve the objectives of the organizations. References 1) Block N.R. and Wolkinson B,W (1996) Employment Law: The workplace rights of employees and employers, Wiley Blackwell Series, US, p.217 2) Cumming S and McCain R.J (2003) HR How To: Employee Leaves, CCH Incorporated, USA.pp.59 3) Douglas Renwick (2003) HR Managers, Guardians of Employee Wellbeing, Personal Review, Vol 32, No. 3, pp 341 - 359 4) Jackson J.H and Robert L. M. (2007) Human Resource Management, Ed. 12, Cengage Learning, UK, p.12 5) Michael Armstrong (2006) A handbook of Human Resource Management Practice, Ed 10, Kogan Page Publishers, USA.p.210 6) The Family and Medical Leave Act of 1993 (FMLA) US Department of Labor, University of Nevada, Las Vegas, http://hr.unlv.edu/Benefits/fmla.html 7) The Family and Medical Leave Act of 1993, Wage and Hour Division, US Department of Labor, http://www.dol.gov/whd/fmla/fmlaAmended.htm#SEC_107_ENFORCEMENT Read More