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Strategic Role of HR and the Legal Environment

Your first assignment with the company is to do a review of their current HR practices and describe to the owners how they stack up to current practices. Remember, this business started as a small business with very few employees. While the owners feel the need the for an HR manager, there is always the nagging issue of "could we have spent the money on another help desk person and gotten more bang for the buck?" These guys
are programmers and business owners, not managers. They need reassurance that hiring an HR person is the right thing to do.

Facts you need:
- The company has 25 employees
- There are 2 female employees, the rest are male
- Most workers are under the age of 35, but there are 4 employees between ages 40-49, and 2 employees over the age of 50
- Terminations are rare in this company, but they have happened. One employee was terminated for drug use and viewing pornography on company computers.
- The company has 3 company vehicles used for on-site services
- Hiring has been ad hoc, mostly by word of mouth.
- There is no employee manual and few formal policies and procedures.

Respond to the following questions:
1. Why do they need to worry about all of this HR stuff anyway?
2. What issues could occur if we just leave things the way they are?
3. What laws apply to them in their company?
4. What policies and procedures would be useful to the company?

Solution Preview

1. Why do they need to worry about all of this HR stuff anyway?

Currently, the firm has 25 employees. Even if it does not fire employees the firm may need to recruit employees. The HR manager will do a good job in recruiting the right person for the firm. Also, the firm's employees are being paid a salary. The HR manager will improve the compensation package of employees considerably. The firm has to pay salaries every month, the HR manager will use a payroll package and streamline the payment of salaries. Even though this is a technical improvement, this action brings reliability and accuracy to payment of salaries. The firm gives benefits to employees; the HR manager will develop a proper benefits package for the employees and administer it.

When new employees are recruited the company has to provide training to the new employees. Also the existing employees have to be provided training from time to time. The HR manager plans, organizes, and evaluates the training of your workers. He will also take care that the employment laws are complied with. The HR manager will examine the activities of the employees and will ensure that ...

Solution Summary

The response provides you a structured explanation of how compensation package is developed. It also gives you two relevant references.