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.

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