The Organization Chart

What is an organization chart? Let’s define it as a formal system of relationships that exist within a business. My question to you is: Can a business survive without an organization chart or defined structure?

I am a firm believer that employees need to be aware of an organizations structure. This is necessary to allow employees to identify key stakeholders and their relationships. How do we relate to each other? What is my authority? What are my responsibilities? An organization chart will allow an organization to establish a clear chain of command, responsibilities and reporting relationships. In the absence of an organization chart to clarify relationships, illogical and confusing ones will develop.

James Gibson, John Ivancevich, and James Donnelly in Organizations: Behavior, Structure, Processes claim; "In many instances, small firms that do rather well in the early stages of their development begin to fail when the founders can no longer manage in their personal styles. The transition from successful small firm to successful large firm is impaired because the employees are doing jobs that fit their personality and unique skills rather than jobs necessary for organizational performance. Organization charts and supporting documents are necessary from the very beginning of a firm's existence, not just when it gets too big for one person to manage."

Let’s talk about a flat organization for just a moment. A “flat organization” is defined as one with few or no levels of intervening management between staff and managers. The theory is that a flat organization will encourage autonomy and self-direction and focus on empowering employees versus adhering to the chain of command. Less supervision = increased involvement in the decision making process.

Company D is a flat organization in the truest sense of the word with 50+ employees that report into a single individual. Oh, there may be one or two people here or there with titles indicating another level of management and related subordinates. But their ability to make decisions is seriously impeded. Any and all decisions are only final when viewed by the top of that rather flat pyramid.

With Company D I have observed an environment in complete confusion. Employees are taking instructions from multiple individuals and there is no clarity with respect to responsibility. Oftentimes directions are contradictory and deadlines are confusing, all causing a negative impact on productivity.

Actual feedback from employees:

Q: What would you improve to make our workplace better?
A: Have an actual organization chart.
A: Communication and a basic company structure.
A: No current structure to follow.
A: General structure needs to be revamped.
A: Defined roles.

Q: Do you have any ideas for improving communication in this company?
A: Having an actual supervisor. . . .

Q: What is your opinion of the opportunity of advancement?
A: There is no organizational structure that would facilitate upward movement or opportunity for advancement.

Clearly these employees have recognized a lack of organizational structure and are experiencing difficulties in their roles. As an employer, take the time to talk to your employees. They may provide you with some valuable insights into your organization!

Thompson v. North American Stainless, LP

It's been almost a year since the US Supreme Court reached a decision that "association discrimination" is a valid Title VII cause of action. The court held that such "retaliation extends to adverse employment actions taken to punish an associate of a person who made a discrimination complaint, such as a family member or other person within the zone of interests protected by Title VII."

Miriam Regalado, an employee of North American Stainless, filed an EEOC charge alleging that her supervisors discriminated against her based on her gender. Three weeks later her fiance, Eric Thompson, was terminated by the company. Eric Thompson filed his own EEOC claim alleging that his termination was in retaliation of his fiances EEOC charge.

Section 704(a) of Title VII forbids an employer from retaliating against an employee because s/he engaged in certain protected activity. Under Thompson v. North American Stainless, the following questions were asked:

1. Does section 704(a) forbid an employer from retaliating for such activity by inflicting reprisals on a third party, such as a spouse, family member or fiance, closely associated with the employee who engaged in such protected activity; and,

2. If so, may that prohibition be enforced in a civil action brought by the third party victim?

The U.S. Supreme Court unanimously held that if Thompson's alleged facts are true, then firing him was an unlawful retaliation under Title VII.

Thompson v. North American Stainless, 131 S. Ct. 863 (2011).

File Retention Requirements

It's the end of the year. If you're like me, we have the "out with the old and in with the new" mentality. Unfortunately for both HR and Payroll professionals alike, there is documentation that has specific retention periods mandated by law. If you don't remember, here's a bit of a refresher for you:

• Hiring. Under Title VII, job applications and resumes must be kept for one year from the date of submission, and pre-employment tests must be kept for one year from the date of the test. The Immigration Reform and Control Act requires Form I-9 to be retained for three years from the date of hire or one year after termination, whichever is later.

• Termination. Documents related to layoff, recall, and reduction-in-force must be kept for one year from the date of the action as per Title VII.

• Promotion and demotion. Title VII also stipulates that records of promotions and demotions must be kept for one year from the date of the action.

• Work hours. Under the Fair Labor Standards Act, time sheets or time cards must be kept for two years after the record is made.

• Leave. Under the Family and Medical Leave Act, records of the dates of leave taken under the Act must be kept for three years.

• Accommodation. Requests for reasonable religious accommodation must be kept for one year after the record is made as per Title VII. Under the Americans with Disabilities Act, requests for disability-related reasonable accommodation must also be kept for one year after the record is made.

• Training. Under Title VII, documents related to the selection of employees for training opportunities must be kept for one year.

Happy Holidays!

2012 Unemployment Tax Rates

Some good news! The TWC presented Texas employers with some good news this holiday season when the 2012 unemployment tax rates were released. The new unemployment rates show a decrease over the prior year. The tax rates range from .61 to 7.58 percent on the first $9,000 in wages paid to each employee down from a range of .78 to 8.25 percent.

For more information, go here: http://www.twc.state.tx.us/ui/tax/unemployment-tax-rates.html

The Holiday Blues (or Bah, Humbug!)

Sing along (to the tune of “Let It Snow”)

Oh, the world outside is frightful,
and everyone seems so spiteful.
But since it’s no way to grow,
let it go, let it go, let it go.
The stress, it is not stopping,
and my heart it feels like popping,
But before I hit an all time low,
I let it go, let it go, let it go.*

*written by REACH Employee Assistance Program Specialist Mike Verano. Yes I borrowed it, I have no shame.

The holiday season has arrived and with it comes parties, shopping and spending time with our families and friends. Unfortunately the holiday season is also a time when depression and stress are more prevalent. (Holiday stress is highly predictable and largely preventable. Just in case you missed it, this happens about the same time each year.)

As an employer, you can control some of the variables that create the holiday season stress for your employees. And remember, as a business owner, CEO or manager, you need to be concerned about not only your employees’ stress levels during the holidays, but your own!

During the holidays, we may see a visible drop in productivity as employees are simply more focused on the multiple distractions that come with the holiday season. But as an employer, your concern is about the projects, deadlines and other company obligations. If possible, try to scale back those projects and commitments until the first of the year. Take a look at how you may prioritize the existing commitments and focus on those that are most significant. Try to work around your employees' schedules, their holidays and vacations.

In a 2011 survey by Accountemps, 39% of employees say managing their workloads can be difficult during the holiday season. 41% say their workloads are already too heavy. Accountemps offers five “gifts” employers can offer to their employees during the holiday season:

• Support: Ensure resources are in place for the staff to successfully complete their projects and consider adding skilled temporary staff to help with key initiatives and maintain productivity.
• Time: Encourage staff to leave early on a Friday or take an occasional long lunch to attend to errands.
• Flexibility: Offer flexible schedules or telecommuting options to staff whose jobs have that capability. This helps employees better balance their work and life demands.
• Thanks: Let staff members know they are appreciated for their work throughout the year.
• Fun: Don’t let the office environment become too serious. A department celebration, such as a group lunch or gift exchange, can help build camaraderie.

Whether you are an HR professional, CEO, or Manager, we all need to remember and have the attitude that a worker’s personal life matters.

Happy Holidays!

People Leave Managers, Not Companies

Over the last 2 months I have seen 5 employees voluntarily terminate from Company X. In each instance the decision was made by the employee with a clear-headed purpose and what appeared to be a great deal of thought and consideration. Each employee provided two weeks’ notice and ensured that their projects were successfully handed off to a co-worker prior to their departure. You couldn’t ask for more.

Yes, I could.

Any employer should immediately ask what is causing this loss of valuable skills and knowledge? And, what steps can I take to stop it? (Two of those individuals opted to leave without the benefit of a new position. In today’s economy, that is frightening.)

In each instance these employees were open to sitting down and discussing what motivated their decision to leave. Each individual indicated that their number one reason to leave Company X was poor leadership. When asked; “Would you recommend working for this company to your family and friends” the answer was, “not at this time.” In each area of our conversation, communication and leadership was ranked at the lowest possible mark.

In 2005 Leigh Branham published the book, The 7 Hidden Reasons Employees Leave: How to Recognize The Subtle Signs and Act Before It Is Too Late. The book provides some interesting information that truly brings to light the disconnect between managers and employees. “ . . . 89% of managers believe that employees leave for more money. But, in fact, the survey found that 88% of the employees leave for reasons other than money.” It has often been stated that employees leave managers, not companies. If you review the below 10 most frequently mentioned issues, you will find that that appears to be the case!

The 10 most frequently mentioned issues that employees say companies do poorly are:

· Poor management—uncaring and unprofessional managers; overworking staff; no respect, not listening, putting people in wrong jobs; speed over quality; poor manager selection processes.
· Lack of career growth and advancement opportunities—no perceivable career paths; not posting job openings or filling from within; favoritism or unfair promotions.
· Poor communications—problems communicating top-down and between departments; after mergers; between facilities.
· Pay—paid under-market or less than contributions warrant; pay inequities; slow raises; favoritism for bonuses/raises; ineffective appraisals.
· Lack of recognition—that says it all.
· Poor senior leadership—not listening, asking, or investing in employees; unresponsiveness and isolation; mixed messages.
· Lack of training—nonexistent or superficial training; nothing for new hires, managers, or to move up.
· Excessive workload—doing more with less; sacrificing quality and customer service for numbers.
· Lack of tools and resources—insufficient, malfunctioning, outdated, equipment/supplies; overwork without relief.
· Lack of teamwork—poor coworker cooperation/commitment; lack of interdepartmental coordination.

Whether you are Company A or Company X, as a manager there are questions that you should ask: What is the rate of our employee turnover? Are we loosing valuable employees? Is there a steady stream of exiting employees? Why are they leaving?

Communicate with your employees, while they are still your employees. Don’t wait until you begin experiencing a high rate of turnover to realize that you have a problem. Managers must take steps to improve their listening skills and to encourage ongoing, meaningful interaction with their team members. Listen to employee concerns and be prepared to act on them.