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Characteristics
of very small enterprises (VSEs) include informal structure, compression of
time, irrationality and the important role of affect in the decision-making
process. The concept of VSE possessing a problem in which the problem increases
with size while decreasing the size of VSE is divided into four components:
number effect, microcosm, proportion effect, and
egotrophy effect. It is critical that disciplinary problems are
not allowed to progress. They must be resolved immediately. It is critical for
small businesses as they work with limited resources.
Human
resource management HRM challenges experienced by 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.
The objective of a progressive discipline policy is to avoid the lingering
effects of employee problems, thus allowing them to fester. Everyone knows once an employee problem or
issue festers long enough, it becomes impossible to resolve thus, leading to
termination. After terminating an employee, starts the process of recruiting to
fill the position plus the added expense of training, etc. You see where I am going with this?
A
traditional progressive discipline policy consists of: verbal warning, written
warning(s), suspension and/or termination. A Letter of Understanding has proven
effective in notification and administering disciplinary actions. A manager
meets with an employee, discusses a problem with the employee; and negotiates a
resolution. Accordingly, the Letter of Understanding identifies a problem,
discusses the favorable resolution; and agrees on the favorable resolution.
During this meeting the manager and employee signs off on the Letter of
Understanding thus, the employee begin corrective action(s). An example is an
employee who is consistently tardy to work. The employer and employee meet and
execute a Letter of Understanding and the employee agrees to be on time for 6
months.
Execution
of a Letter of Understanding puts the responsibility of the correcting the
problem or issue in the hands of the employee. Thus, it is a win-win situation
as the employer has advised the employee of the problem or issue and the
forefront of the employee and the employee takes the responsibility to rectify
the problem or issue. Sneed (1987) raves the Letter of Understanding presents
the employer and employee a positive, non-confrontational manner in which to
resolve employee problems or issues.
Click
here to request a Sample
Letter of Understanding or Sample
Progressive Discipline Policy and related forms.
April,
President of All-4-HR & Business Solutions
http://www.all4hrbiz.biz
Stay tuned for All-4-HR & Business Solutions
Lunchtime Web HR Cafè…..
References
Jaouen, A., & Tessier, N. (2009).
HRM strategies and very small firm development: French cases studies. Paper
presented at the 1-19. Retrieved from http://search.proquest.com.library.capella.edu/docview/192410629?accountid=27965
Case history: A positive approach to
discipline. (1987). Small Business Report, 12(2), 90. Retrieved from
http://search.proquest.com.library.capella.edu/docview/214381983?accountid=27965
