Small- Medium-Size Enterprises (SMEs) Progressive Discipline

Human resource management HRM challenges of very small enterprises (VSEs) and small- medium-sized enterprises (SMEs) vary substantially from large organizations.  As the economy is controlled in large portion by SMEs and VSEs, it is beneficial for researchers to determine what aspects determine the success or failure of these organizations. Human resource management strategies applied to HRM will determine the success or failure of VSEs and SMEs.  

An effective HRM strategy that reflects four components discussed above is the implementation and execution of a progressive discipline policy. EVERY company NEEDS an effective progressive discipline policy. No organization is exempt!! Absence of a progressive discipline policy lays the foundation for organization failure. A progressive discipline policy protects both the employer and the employee.

Be sure there is an updated Employee Handbook in place outlining all HRM policies.  Make sure the progressive discipline policy is defined in the employee handbook. Further, be sure to define serious offenses:

• Fighting, theft, insubordination, threats of violence, the               sale or possession of drugs or abuse of alcohol on company property. 

• Serious offenses that lead to immediate termination, i.e., NO progressive discipline action will be taken and/or NO Letter of Understanding executed.

The following disciplinary actions:

•  What offense include(s) 
•  Penalties for specific offense 
•  First offense: oral or written reprimand 
•  Second offense: suspension or termination

 What disciplinary action(s) will be taken

•  Probation  
•  Investigative suspension 
•  Disciplinary suspension 
•  Crisis suspension  
•  Discharge

This Policy should be outlined in your Employee Handbook (current updated).

A Letter of Understanding has proven effective in notification and administering disciplinary actions.

Email me at all4hrbiz@gmail.com for a Sample Letter of Understanding or any HR Forms you need.

Stay tuned for All-4-HR & Business Solutions Lunchtime Web HR Cafès…..

‪How to make Your HR More Than a HR Department

HR has evolved into so much more than “personnel”. The function of the HR is no longer to focus on policing employees and weeding out undesirables during the hiring process. The function of HR varies across industries as well as from large organizations and SMEs (small- medium-sized enterprises).  While some would like to portray HR departments are not essential, the fact stands that organizations are more in need of the benefits of effective HR than ever. This is especially applicable to SMEs. SMEs’ need for effective, strategic HR is a necessity to achieving organizational growth.

Transactional and Strategic HR are BOTH essential to growing a successful business: HR professionals must utilize the organization’s talent to execute transactional and strategic HR. Transactional HR include: policies and procedures; compliance and legal issues; employee benefits; and recruitment. Strategic HR include: understanding company’s industry; understanding company’s business; helping to set business objectives; and developing HR initiatives that serve company objectives. HR professionals can train HR professionals on executing strategic HR processes.

NOTE: Job rotation can be used to familiarize new employees with how the organization works. Individuals spend several weeks or as long as 6 months in one department and then move to another.  This system is also effective for cross-training employees to ensure productivity for those times when short-staffed.

The HR Function must foresee changing trends in the business and industry: The HR function has to foresee the future, trotting a little ahead of the organization to foresee changing trends in the business and the industry. Senior leadership has to afford the HR function the tools and platform to do so.  Everyone must be on board!

Senior leadership must acknowledge the Strategic Role of HR: Senior leadership has viewed HR as “personnel”, with the primary duties consisting of transactional HR (policies and procedures, etc.). The HR role has evolved to the HR function, consisting of the transactional HR function and strategic HR function as a “whole”. It is critical that senior leadership acknowledge the new HR Role.  

April, President