SBDC Counselor Certification Manual

MODULE 12 – Human Resources Management and Legislation

Table of Contents
1. Performance Objective

2. Introduction

3. Human Resources Management

4. Sample Forms

5. Helpful Websites

Performance Objective

The business counselor will identify and assemble information on the

seven basic areas of human resource management, including organizational
chart, job description, recruiting sources, interviewing and selection,
performance appraisals, discipline & discharge, and personnel policies. The
Business Counselor will identify pertinent employment laws and regulations
and will clearly explain the function and application of each topic to a client’s
business.

Evaluation
Your knowledge of Human Resources Management and Legislation will be
evaluated by the following methods.
1. Recognizing human resources matters and regulatory issues during
co-counseling, and compiling appropriate materials to give to the
client.
2. Correctly answering case study questions concerning human
resource management and legislation.
3. Receiving favorable reports from 80% or more of clients returning
appointment evaluation postcards.
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How You Will Be Trained
Please complete the following tasks:
1. Read Module 12 in its entirety.
2. Co-counsel a client needing human resource information.
3. Attend training session

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Introduction

Assisting a client to develop his or her personnel function is normally a step-

by-step process. In order for you to develop a comprehensive view of the
business, it is recommended that you use the following order:
• develop an organizational chart,
• discuss job analysis,
• assist the client to develop job descriptions,
• discuss free and for-fee recruiting sources,
• advise the client on legal issues that affect application forms and
interview questions,
• suggest methods to verify references,
• provide a list of information to be retained in personnel files,
• describe methods to determine fair wages and salaries,
• determine effective orientation and training methods,
• advise the client on motivation methods and performance appraisals,
• discuss employee discipline and discharge, and
• define the difference between an employee and an independent
contractor.
The following outline and forms may provide you with an overview of the
above topics.

Human Resources Management

1 ORGANIZATION CHART
Use to document all employees and to document the chain of
command.

2 JOB ANALYSIS
Analyze all aspects of any job prior to hiring or to restructure jobs:
• List tasks and duties.
• Estimate time needed to complete these tasks and duties.
• Can these tasks be given to other existing employees? If not, does this
require 3 part-time or 1 full-time?
• Determine if company has income necessary to pay new person.
• Estimate how much additional income will be generated by new person.
• At what point will benefits of extra employees exceed costs?
• The outcome of a job analysis is used to develop job descriptions and
specifications.

3 USES OF A JOB DESCRIPTION

• Selection:
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 Identify skills/qualifications; useful for new hires & promotions;
determines training needs
• Legal Compliance:
Fair Labor Standards, Pregnancy Discrimination, Civil Rights, Equal
Pay, American with Disabilities, Rehabilitation, Sexual Harassment, Age
Discrimination, Family Rights Act, and Occupational Safety and
Health Acts. (See Government Agency Manual)
• Compensation:
Determine the worth of a job, develop a pay scale for all jobs in your
company, and then compare with what other employers are paying.
• Employer Relations:
Provides the basic for performance evaluation. Is useful for
counseling grievances, and discipline and discharge.
• Job Description Form:
See “Forms” section of this module. (see attached revised form – Job
Descriptions and Qualifications)

4 RECRUITING SOURCES
• No Cost Sources:
Walk-in applicants, school placement offices, Wyoming Employment
Resources, Internal or External Referrals, Job Fairs, Internet Job
Boards (Monster.com or HotJobs.com), Employer’s Web Site
• Fee Based Sources:
Classified advertisements, employment agencies and head hunters,
professional trade associations and journals, magazines, Internet Job
Boards (e.g. Monster.com or HotJobs.com)
• Features of a Ad:
Include the position title, job description, qualifications required,
starting pay range, closing date for application, who to contact with
questions (if allowed), option of how and where to submit the
application and/or resume and cover letter. Use attractive language
emphasizing personal relationships, personal impact and opportunity for
growth and change.

5 APPLICATIONS AND INTERVIEWS

Topics to avoid unless proven to be job-related:
• Physical size and weight, religion, garnishment of wages, bond refusal,
home ownership, spouse’s job, relatives, request for photograph of
applicant, arrest record. All questions asked should be directly related
to the job the interviewee has applied for. It is illegal to ask questions
that result in information regarding race, age, gender, national origin,
marital status, or number of children.
• Sample application form:
included in this module
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6 REFERENCE CHECKS
• “Negligent Hiring” refers to litigation against employers who hire
employees who endanger present employees and customers. Protect
yourself by checking references!
• Telephone works best, but do offer to send reference letter on your
letterhead to verify your identity.
• Questions should be strictly job-related, such as: dates of employment,
final job title, responsibilities, reason for leaving, duties performed best,
areas needing improvement, final salary, days of worked missed,
history of tardiness, and eligibility for rehire.
• Maintain the confidentiality of the information you receive. Do not
share it with applicants you do not hire.
Private Investigation Services:
• Pre-employment investigations will confirm SS#, credit check, police
records, workers’ comp claims, motor vehicle violations, and
confirmation of previous employment, educations, licenses,
credentials, honors and awards.

7 PERSONNEL FILES AND DOCUMENTATION

• Job Application
• Employment Record: Including employment date, years of service,
status, (regular, part-time, temporary) performance appraisals, record of
promotions, transfers, demotions.
• Payroll Data: Wage/salary history, birthdates, sex, Social Security
Number, marital status, name of spouse, number of children, federal
withholding information, benefits information.
• General Information: address, who to notify in an emergency, friends or
relatives employed by the company.
• Training and Development: seminars, classes, etc.
• Termination information: letter of resignation, date and reason,
recommendation for re-hire, exit interview.
• Attendance Record.
• I-9 forms should be all maintained in one file (included in this module)

8 COMPENSATION
• Conduct a wage and salary survey: determine the wages and salary to
pay.
• Information Sources: trade associations, US Department of Labor
(various surveys), personnel association, consultants’ published
surveys, hire a consultant, or contact out-of-town competitors to
determine their compensation plans.
• Benefits: In employees’ priority order: health insurance, vacation, sick
leave, holidays, disability insurance, and retirement plan.
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9 TRAINING
Orientation:
• “Housekeeping”: restroom, breaks, water fountain, etc.
• Introduce to co-workers and supervisor. Arrange for co-worker to have
lunch with new employee.
• Complete I-9 and IRS forms, and other administrative details.
• Review pay procedures and employee benefits.
• Review personnel policy manual.
• Review job description.
• Discuss safety regulations.
On-the-Job Training:
• Break task into key parts, presented in sequence.
• Include safety procedures.
• Avoid unnecessary distractions.
• Trainer demonstrates and explains performance of task.
• Employee performs and explains task
• Offer constructive criticism.
• Teach one task at a time, patience is a virtue.
• Put performance goals in writing. They should be quantifiable,
attainable and include a time line.
• Review employee’s progress
Other Training Methods:
• In-house informal/formal classes
• Outside schools and seminars
• Job rotation
• Coaching/mentoring
• Apprenticeship
(Note: Wyoming Workforce Training Grants can be a valuable resource for
businesses to fund training).

10 MOTIVATION AND TEAM BUILIDNG

Meet on-the-job needs (Maslow):
• Physiological: Comfortable working conditions
• Safety: Safety rules and equipment
• Social: Friendly place to work
• Esteem: Job title, business cards
• Self Actualization: Freedom to try new ideas
Motivation and Dis-satisfiers (Herzberg):
• Achievement
• Recognition
• Work Itself
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 • Responsibility
• Advancement
• Growth
• Company Policies
• Supervision
• Relationship with Supervisor
• Work Conditions
• Salary
• Relationship with peers
• Personal life
• Relationship with subordinates
• Status and security
Team Building:
• Communicate the goals
• Give everyone a voice in decisions
• Give everyone responsibility to improve company
• Give everyone deadlines
• Recognize employees have different motives
• Offer challenge and variety in work
• Treat employees the way you want them to become
• You get what you reward-not what you ask for
• Sufficient information, support and authority
• Understand how their work fits in the company
• Rewards are linked to performance
• Treat as individuals important to the Company
Rewards That Work (Michael LeBoeuf):
• Money
• Recognition
• Time off
• Advancement
• Workshops & seminars
• Meaningful assignments
• Food& other distractions
• Contests and campaigns
• Positive Feedback
• Social acceptance

11 EMPLOYEE EVALUATION FACTORS FOR USE IN PERFORMANCE

APPRAISALS
Factors are commonly measured on a ranking scale:
• Quality of Work-Performance in meeting standards.
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 • Job Knowledge- understanding of work.
• Quantity- output of satisfactory work.
• Dependability- works according to instructions.
• Initiative-originates action and new ideas
• Adaptability- ability to accept change.
• Attitude- willing and cooperative.
• Safety and Housekeeping- complies with rules.
• Potential- ability to lead and teach others
• Supervisory Ability- for supervisors only.
Sample Performance Appraisals Form:
• Included in this Module.

12 DISCIPLINE AND DISCHARGE

• Oral (Verbal) Counseling:
Should be documented and retained in personnel file six months.
There should be no more than two oral warnings before progressing
to a written warning.
• Written Warning:
Should be documented and retained in personnel file permanently.
There should be no more than two written warnings before
progressing to suspension or termination. Employee and the manager
should both sign. This is the normal turning point as employee realizes
the seriousness of the situation.
• Suspension:
Consists of day or days’ off, with or without pay, depending on the
seriousness of the infraction and the prior performance of the
employee. Use this time to gather proof and evidence to support your
suspicions of wrong-doing.
• Documentation for oral and written counseling sessions:
Define the problem- list facts and details, negative effect on the
business, company policies prohibiting employee’s actions, and note
any previous warnings.
• Specify corrective actions required- list specific tasks/actions employee
must accomplish, set deadlines, and list any actions you will do to
assist employee.
• Consequence of failure to improve- list the next steps in the
progressive discipline system.
• Dates and signatures-employee and manager both sign and date the
document, and employee keeps a photocopy.
• Offenses Requiring Disciplinary Action:
In order of severity of action-poor job performance, unauthorized
absence, tardiness, negligent use of company property, failure to

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 report to work, violation of a published rule, sleeping on the job,
falsifying time cards, fighting on the job, theft, gross insubordination.
• Discharge:
Before the Interview- determine when to do it, be prepared and firm
with your decision, have any documentation ready, and complete
administrative details.
• During the Interview- have a witness, get right to the point, and do not
allow arguments, further discussion, or counseling. Allow the employee
to resign.
• After the Interview-give last paycheck, avoid intentionally inflicting
distress, and seal personnel file.
• Exit Interview of Resigning Employees:
Should be voluntary and confidential. Understand reasons, with
emphasis on what the company could have done better. Use a non-
supervisor to conduct it or use anonymous questionnaires.
• Opinion on orientation process, equipment& physical facilities,
compensation and benefits, management practices, EEO & AA.
• What does your new job have that this one did not?
• Did you feel you used your skills to your highest potential here?
• Did your job match your expectations?
• What did you like least about working here?
• What could the company do to make it easier for your successors?
• Would you recommend this as a good place to work?
• What would you change about the organization?

13 FACTORS INDICATING WORKER IS AN EMPLOYEE, NOT A

SUBCONTRACTOR
An employee:
• Must comply with instructions.
• Is trained by person who hires him/her.
• Services are integrated with the business.
• Must personally render services.
• Cannot hire or fire assistants.
• Relationship with the company is on-going.
• Work hours are preset.
• Must devote full time to business.
• Work is done on company premises.
• Cannot control the order or sequence of work.
• Submits oral or written reports.
• Is paid at specific intervals.
• Business expenses are reimbursed.
• Is provided with tools, equipment and materials.
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 • Has no significant investment in company.
• Has no opportunity for profit/loss in the company.
• Is not engaged by other companies.
• Does not offer service to public.
• May be discharged by employer.
• Can resign without liability.

14 TYPICAL TOPICS OF A PERSONNEL POLICIES MANUAL

Equal Employment Holidays
Opportunity Vacations
Physical Examinations Sick Leave
Probationary Period Leave of Absence
Nepotism Jury Duty
Work Hours Bereavement Leave
Employee Status Parental Leave
Overtime Pay Suggestion System
Tardiness Severance Pay
Tuition Reimbursement Bulletin Board
Performance Evaluations Confidentiality
Time Clock Discipline System
Emergency Closing Insurance
Grievance Procedure Soliciting
Disability Leave Military Leave
Pension/ Retirement
Family and Medical Leave

SAMPLE FORMS
(INCLUDED ON FOLLOWING PAGES)
• Job Description and Qualifications attached
• Sample Application for Employment attached
• I-9 Form Employment Eligibility Verification
• General Employee Performance Review attached

HELPFUL WEBSITES
• www.business.gov/guides/employment The Official Business Link to the
Government
• www.dol.gov/elaws U.S. Department of Labor
• www.doe.state.wy.us Wyoming Department of Employment
• www.wyomingworkforce.org Wyoming Department of Workforce
Services
• www.managementhelp.org Free Management Library
• www.access.gpo.gov/davisbacon/ Davis-Bacon Wage Determination
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• www.ethics.org Ethics Resource Center
• www.entrepreneur.com/humanresources/index.html
Entrepreneur.com, Free human resource articles, guides, and
information
• www.na.fs.fed.us/wihispanic/employee_handbook/default.htm
Employee Handbook Template
• www.HRhero.com Your Employment Law Resource (free & fee)
• www.shrm.org Society for Human Resource Management
(membership)
• www.wageweb.com (links to wage comparisons and job descriptions)
• hr.blr.com Business & Legal Reports (membership subscription)
• www.workforce.com Workforce Management (articles and resources)
• www.hrit.com Human Resources and Information Technology solutions
(fees)
• www.uscis.gov/portal/site/uscis U.S. Citizenship and Immigration
Services

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Module 12 Training Checklist
• Business Counselor__________________
• Read Module 12 ______ DATE
• Attend Training Session _______ DATE
• Case Study Case #3 ________ DATE