Memo_Compensation_Plan_Hrm_531

Career Development Plan Summary Mariam Ibrahim HRM 531 November 22, 2010 Tracey Durden Date: November 22nd, 2010 To: Kathy Kudler From: Mariam Ibrahim RE: Career Development Plan Summary Kathy Kudler established Kudler Fine Foods and it was a success. Kudler Fine Foods has many organic products, bakery, meat and Seafood, Produce, Cheese and Dairy, and Wine. She does all her products fresh except for the Wine, of course. Kudler Fine Foods has three issues; the first issue is that she manages her own stores, which leads to the second problem, the geographic expansion, she opened the stores not so far apart so as she manages her own stores. The third issue is that she deals with perishable goods, which are a waste of her products, they are not meant to last. As a solution for these issues, she needs to hire new staff to help her to advance her business. Kudler has five new positions to fill; description and qualifications for the new positions, training programs, evaluation methods, incentives and benefits packages, and a compensation plan. Kathy Kudler will need an assistant manager, lead trainer, human resources recruiter, financial manager, and store manager. Assistant manager’s job description 1. Assists store manager. 2. Creates employee schedules. 3. Orders and receives merchandise. 4. Assemble the company’s paperwork. 5. Prepares sales and inventory reports. Qualifications 1. Minimum High School Diploma or GED required. 2. Minimum 5 years experience in retail experience. 3. Must be willing to travel or relocate. 4. Good oral and written communication skills. 5. Must be able to work without direct supervision. Lead Trainer’s job description 1. Must be able to pass on the required information to different levels of employees. 2. Must be able to lead by example while assisting employees to reach their highest level of performance. 3. Must be able to handle several employees at the same time. 4. Ongoing mentoring and must be available at all times. 5. Organizes scheduling for all trainings. Qualifications 1. Must have Bachelor’s degree in Business Administration. 2. Minimum 3 years of training experience. 3. Must be able to conduct new trainings for new hires. 4. Excellent interpersonal and coaching skills. 5. Must be available at all times for advising employees. Human resources recruiter’s job description 1. Must be able to conduct all interviews, orientation, and handling all documents required. 2. Skills in database management and record keeping. 3. Must be in contact with other departments and knowing their needs. 4. Strong presentation skills. Qualifications 1. Bachelor’s degree in human resources management is required. 2. At least 4 years of human resources experience. 3. Must be able to work with all kinds of personnel. 4. Good oral and written communication skills. 5. Strong analytical abilities. Financial Manager’s job description 1. Prepares statements and reports of present and future revenues and expenses. 2. Plans and organizes financial and accounting activities for the organization. 3. Analyzes changes and advises accordingly. 4. Researches and reports on factors influencing business performance. 5. Arranges new sources of finance for a company's debt facilities. Qualifications 1. Bachelor’s Degree in Accounting or Finance. 2. Minimum of 4 years of Accounting or Financial experience. 3. Intermediate to expert Microsoft Excel skills 4. A Certified Public Accounting is preferred. 5. Must have strong consolidations and intercompany accounting experience Store Manager’s job description 1. Checks for price changes in the market. 2. Takes in customer complaints and address them to the assistant manager. 3. Manages receipts and make sure the shop compiles with safety standards. 4. Must able to stand most of the times, making sure that the store is managed properly. 5. Excellent interpersonal and coaching skills. Qualifications 1. High School Diploma or GED required. 2. Minimum of 5 years of experience. 3. Ability to handle personnel and customers. 4. Excellent interpersonal and coaching skills. The company decided to obtain a new training technique and providing mentors to the employees. The main objective to that training program is to increase the employees’ skills and knowledge to accomplish their jobs successfully. Mentorship is important because it affects the learning technique in a positive manner for the employees and the company. Mentorship provides an opportunity for the newcomers to learn from former successful employees. They also gain loyalty to the company by trusting that this mentor who is teaching them what they need to learn. The employees respect the mentor’s advice as he was previously in their situation; therefore by learning from this mentor. As a result the employees will have the skills; they will need to perform their jobs effectively. According to Cascio (2006), “Training methods can be classified in three ways: information presentation, simulation methods, or on-the-job training.” The training technique will be in three parts; the first technique is the information presentation, which provides industry-related information, and lectures. The second technique is the simulation methods, which will train employees how to deal with unexpected situations. Finally the third technique is on-the-job training, which will help employees to be familiar with how to deal with clients, building relationships, and become more confident with their decisions. According to Ibrahim, Simmons, Berens and White (2010), “Managers are will be looking at not only their skills and how well they do their job based on their skills, but also how are they doing their job, how are they performing their jobs, are there mistakes made, if so how have those mistakes been resolved, what is their attitude in the workplace and how have they addressed issues such as harmony in the workplace or diversity in the workplace“ Mainly the managers will evaluate the employee’s performance in the performance appraisal form. If the employee needs improvement, the manager suggests what type of training the employee should acquire. An individual performance appraisal shows how the employee is progressing, whether the he needs more training, and demonstrates his strengths and weaknesses. A team performance appraisal differs from the individual appraisal only in one point that each team member is responsible for his/her own development. The evaluation is measured on the team performance not individual performance, which means they have to resolve any problems or limitation as the team proceeds. The main difficulty of evaluating the team performance is that one or two in the team aren’t doing their parts of the work. As a result the team will not be graded fairly. The manager should be definite that all team members are on the same level of performance. The main two unique needs that revolves around the team performance appraisal; first is the nature of the team’s structure, which are categorized into three types of teams; first is the work team, who is formed around executing routine tasks, the second team is the “project” team, who is formed around a specific outcome and then disbanded once they obtain it, and the third team is the “network” team, who is formed around more non-routine tasks. The second point is interpersonal relationships between team members, which important as it measure the health and culture of a team. Employees expect reward when they improve their performance, which is normal for anyone. Leaders must reward their employees accordingly, so as to keep the motivation active. Promotions and incentives are the best rewarding technique to reward the employees. Leaders must be aware of their employees’ expectations so as not to lose their trust and respect.   The manager should pay attention to the employees’ motivation and compensation, so as not to be inequitable to any employee. The manager must maintain fair pay rates of employees doing the same task or duty, and if they are fair compared to outside markets, as a result this will maintain the average motivation of any employee. Manager should check that all employees are doing their parts so as to diminish the social loafing. According to Ibrahim, Simmons, Berens and White (2010), “Some ways to discourage social loafing is to have a set of rules for the team. This way each team member will know the rules and have to abide by them. In the rules should be goals for performance and expectations.” When the team is familiar with their boundaries and rules, they will be aware of what to expect, which will maintain their hard work to meet the goals and expectations. The main rules that any team should abide by are varies; understand their unique contribution, plan with the manager, take responsibility, be a team player, be punctual, speak candidly, and think how to improve the team and the company. These base rules will be very motivating and will make the team loyal to each other and the company. The employees will have a base salary of minimum wage and the commission earned will be included. The commission system will give the employees the motivation to improve their sales skills, as the pay will increase each time they will make a sale or a deal. Inside and outside sales teams will cooperate to discover new skills methods as they enhance these skills by experiencing different techniques. For that reason their pay will be merit-pay system while using the non-financial rewarding system for an increase in motivation. As to have an effective incentive system, the team thought of using the merit-pay systems. According to Cascio (2006), this plan may not work for many reasons such as the incentive value of the reward offered is too low, the link between performance and rewards is weak, supervisors often resist performance appraisal, union contracts influence pay-for-performance decisions within and between organizations, and the annuity problem. However, this system will work for the company as the humane resources will place some guidelines for effective merit-pay system such as establishing high standards of performance, developing accurate performance appraisal systems, training supervisors the mechanics of performance appraisal and giving the feedback to subordinates, attaching rewards closely to performance and will use a wide range of increases meaningful (Cascio, 2006). The company recognizes the team’s efforts and success, and comprehends that the employees have personal lives, which is placed into consideration. The company offers flexible schedules for the employees to choose which time is suitable for them, and the opportunity that they can have pay time off as much as two days a week. This flexibility is family friendly, which helps the employees to have the loyalty and be contented to work in the company’s environment. Diversity can be a beneficial opportunity for the team, as different backgrounds, professional experience, and several ideas will be present. Introducing the employees to each other and making weekly informal meetings will make them more comfortable to work together as they will understand each other’s perspectives. For those employees whom aren’t progressing in their training, the trainers will provide other trainings methods for them. They are allowed to move to a lower pace environment so as to meet the performance of the rest of the team. The mentor should locate the best method that can affect the employee and make the process easier for him to comprehend and applicable. The company will give them an educational opportunity so as to help them progress in their training if needed. For those employees who have met the minimum requirements, the company will offer them the training that will take them to the next level in their career. Promotions and incentives are the rewards of their hard efforts to attain their goals. There will be a standard benefits the employee will initially receive; health insurance with employee share of cost, 401K match, 14 days paid vacation and 10 days of sick leave. After the employee reaches a certain level of rewards, he/she can trade in with a security and health benefits he/she wants as a reward of his/her efforts. The components of the reward packages will be clearly communicated and written for the employees. The main responsibility of the humane resources department is to inform the employees of their benefits and update them with any new changes. Employees must have a clear idea of their options and benefits so as to avoid any confusion or misunderstandings. Kudler Fine Foods’ end vision is, “the premiere organic gourmet grocery store for customers who love to enjoy the finest meats, produce, cheese, and wine. The products don’t have any preservatives. As Kathy Kudler is looking for outside management so as to have the time to spend with customers and seek their needs. Kudler is continuing to expand in other cities for better reputation.” References • Cascio, W. F. (2006). Managing human resources: Productivity, quality of work life, profits (7th ed.). New York: McGraw-Hill. • Ibrahim, M., Simmons, K., Berens, L., & White, R., (2010). . TEAM PERFORMANCE APPRAISAL SYSTEM. •  Kudler Fine Foods. (2007). . Retrieved from http://(2007). Kudler Fine Foods. Retrieved from https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Kudler/Internet