Economic Development

Human Resources Departments Role

Some human resource departments have maintained an old command and control mentality, where they see their jobs as making sure managers and employees are doing what they are supposed to. Is everyone on time? Why not? What about sick leave? Are all the rules being followed? It’s not that these departments are misguided, because some rules, (e.g.. hiring practices, safety, harassment, etc.) ARE important and need to be handled centrally by a company. Or, certain programs and procedures may best be handled by a central department because of the need to coordinate some actions across the entire company. Problems arise, however, when the HR departments forgets that it’s purpose is to serve the needs of the company, the managers and the employees, to help THEM get the work done.

After all, is your company’s human resources department a PROFIT CENTER? Of course not. The HR department doesn’t produce anything or sell anything but it can help the rest of the company make things or sell things by smoothing the path on some matters.

What sets apart good HR departments from bad is that the bad ones lose their service orientation, and forget that if they don’t help others get their jobs done; they won’t get cooperation from those they should be helping. The good ones recognize that while they are obligated to do some regulation of some processes, that they can play important leadership roles in the organization. And that does NOT mean dictating but balancing off the needs of the organization with the needs of the managers and employees.

What would this look like? Let’s take an example: performance appraisal. Poor HR departments go about performance appraisal this way. They devise a set of rules and forms on their own, then go forth (if they have executive support) and TELL managers and employees what they SHALL do. They tend not to consult, or if they consult just forget to listen to the people who have to use these sometimes monstrous procedures. What happens is that since HR tends to be somewhat distant from the users of the system, the process misses. Managers and employees see the process as another hoop to jump through, and stall, or avoid doing what they are supposed to. What happens is that HR then has to move into the police or enforcer role, to try to coerce managers to do what they are supposed to. That gets everyone frustrated and drives wedges between HR and the rest of the company.

The good HR department goes about it differently. While they recognize that performance appraisal needs to be, in some respects, a central organization process, they also recognize that if the process isn’t responsive to at least some needs of managers and employees, it will never succeed. So rather than dictating the procedures, forms and minutiae, the smart HR folks create (in consultation with both managers and employees), a skeleton outline of the process. This skeleton outlines the basic components, but leave the details to the managers. So rather than telling managers they much use the twelve page form provided, they simply say that managers must document the performance discussions, and forward them to HR at least annually. See the difference? The shift here is from dictating details to providing a framework and helping people work within that general framework. It’s a SUPPORTING function, and not a lead actor.

Everyone benefits (including the HR staff) by backing off and recognizing that one can both support and lead at the same time without dictating. The bottom line is that the more HR dictates and plays enforcer, the fewer managers and staffs feel they need to take responsibility for the functions HR is dictating. The more dictation the more resistance from the rest of the company.

So, HR folks. Look to providing frameworks, rather than details. Look to serve rather than to command.

How Strong is Your Foundation?

Just like with houses, you often cannot tell by looking at a person if the foundation is strong. You can only tell when the hurricane blows by or the earthquake strikes – and then it’s too late to do something about it. The time to build a foundation is BEFORE you build the house. Often, you will spend more time on the foundation than the house itself – that isn’t good news for impatient people who want to see results yesterday! If you build the house and notice later that you should have built a stronger foundation, you may need to tear everything down and start over again. Even patchwork will be tricky and very costly.

As people, we need a strong foundation with strong pillars which, in my mind, are made up of health, relationships, finances, and work. These, in turn, must be strong.

Strong health means strong physical, emotional, and mental health. It means being in that state now and it means working on maintaining that state. Everyone may come in contact with disease, but generally those with a stronger foundation of health will combat the disease faster, often even before you know you are sick. Building strong health includes working on a positive mental attitude, working out regularly, positive eating habits, regular time off work, and some form of spiritual work. This may include going to church, meditating or volunteer work to benefit others.

Strong finances don’t only mean a lot of immediate cash flow. It means good cash flow and the knowledge that if the cash flow stopped (due to injury, divorce, downsizing, changes in market conditions), there would be a cushion made up of insurance and income from various sources like businesses and investments. Strong finances are built for the short term as well as the long term.

Strong relationships mean clean and happy, satisfying relationships with others. It has been proven that people with social interactions and married people, on average, live longer than those who are alone. Strong relationships mean that there are no outstanding issues with the people in your life. All family secrets have been dealt with, all the times that your spouse has left the toilet seat up have been forgiven and forgotten. Of course, it wouldn’t be human to never have any disagreements, but it is human and possible to have such disagreements cleaned up quickly. Strong relationships feel great and provide an incredible opportunity for support when needed.

Strong work environment, to me, includes a number of things. Relationships with coworkers, owners or partners, and customers need to be good. There needs to be a sense of purpose, meaning, and appreciation for the work being done. The work needs to “fit” your particular personality and nourish you financially and otherwise.

How strong does the foundation need to be? That depends on the kind of house you want to build. A doghouse doesn’t need much of a foundation. A tall apartment building does! What kind of a foundation does YOUR dream life need?

Between Two Types of Women Entrepreneurs and Two Responses

Last week’s article covered the likely responses of three “Janes,” Jane Dough, Accidental Jane, and Tenacity Jane. This week, we explore the reactions of Go Jane Go and Merry Jane.

Go Jane Go is a successful female entrepreneur who has grown her business to the point that she may struggle to get time away from work. She’s confident and organized, and is likely to have put systems in place to get her work done in an efficient manner—which may have something to do with why she’s four times as likely as the average female business owner to hit the million-dollar. Accounting for 14% of all women entrepreneurs, Go Jane Go types are the least common of the five Jane types.

Because Go Jane Go has grown her business to the point where her she has plenty of work coming in—and the right systems in place to accommodate that work—the loss of a single client (or even two or three) does not pose a serious threat to her business.

However, because Go Jane Go tends cares so much about her clients, the loss of one or more of them may set off some serious alarm bells anyway. If the customer had been a good one with whom she had a relationship, she may feel guilt about whether she failed to provide the right level of service and almost obsessed about what she might have done wrong or what she might have done to prevent the loss. This “looking backward” approach can take up considerable energy from Go Jane Go and keep her from being able to see all of the good she has done.

It is also possible, again depending on the relationship, that Go Jane Go might actually feel relieved. In these cases, it is likely that the relationship wasn’t working for Go Jane Go but because she is committed to good service and doesn’t generally like to engage in what she may see as confrontation, she may have been quietly suffering the relationship. When this client goes, she may actually feel liberated.

In either case, Go Jane Go has an opportunity to remind herself to depersonalize things somewhat and focus on re-investing her energy. In the case of the “bad” customer, she is now free to spend her time focusing on stronger and better relationships. In the case of the lost “good” customer, she should:

  1. acknowledge that sometimes things happen that are out of our control,
  2. give herself credit for all the things she did that were right
  3. acknowledge any lessons learned and commit to improving next time
  4. and finally, release any guilt feelings and reinvest her energy in a happier way.

Our last entrepreneur, Merry Jane, is very committed to running her business in a way that helps her be master of her own time. She realizes she may not be making as much money as she might, but she’s happily running her company in a way that works for her lifestyle. Roughly 19% of women business owners are Merry Janes.

Merry Jane cares about her customers and wants to keep them, but at the same time she knows that she only has so much time to invest in any given customer. Therefore, when a customer leaves, she is likely to see it fairly pragmatically, knowing that sometimes these things happen in business. She’ll quickly turn her attention to identifying the next new customer to replace the loss.

Recalled Cars to Fix Toyota Issue

Word of the remedy came as the French automaker Peugeot said it was recalling cars it builds with Toyota at a plant the companies operate together in the Czech Republic, widening a recall that has already affected cars in the United States, Canada, and China and throughout Europe.

Toyota presented a plan for repairing the potentially sticky pedals to the National Highway Traffic Safety Administration, a senior official at the Transportation Department said. The official spoke on condition of anonymity.

The safety agency is not required to approve remedies but can reject them if it thinks they will not sufficiently address defects. The agency did not reject the remedy, the Transportation official said.

Toyota officials phoned dealers Saturday to say that a remedy was ready.

“We got the call this morning,” said Peter Blackstock, the owner of Victory Toyota and Lexus Monterey Peninsula in Seaside, Calif. “The parts are on their way.”

A Toyota spokesman, Mike Michels, said the company planned an announcement next week and would send letters to owners, but he cautioned it could take several weeks for notices to arrive. Toyota wants owners to wait for the letters before they take their cars to dealerships for repairs, he said.

Mr. Blackstock said he expected that dealers would be sent replacement accelerator pedals, which are produced for Toyota by CTS, a parts supplier based in Elkhart, Ind.

Separately on Saturday, the traffic safety agency said it had opened an investigation into the manufacture of the accelerator pedals.

Last week, Toyota said it would temporary stop production and sales of eight models — as well as sales of the Pontiac Vibe, which Toyota makes on behalf of General Motors — at plants throughout the United States and Canada. The plants are scheduled to be closed for a week beginning on Monday.

Toyota did not stop production or sales at plants in Europe because it said it had already devised and implemented a remedy there.

The recall for accelerator pedals involves 4.1 million cars in the United States, Europe and elsewhere. Toyota has also recalled another 5.4 million cars in the United States whose accelerator pedals could get stuck on floor mats. Worldwide, the recalls affect more than 9.5 million vehicles.

The recalls have given a black eye to Toyota, which grew to become the world’s largest automaker, and the second largest in the United States, based on a reputation for building high-quality vehicles.

On Friday, Toyota’s chief executive, Akio Toyoda, apologized for the problem but said consumers should feel confident driving the company’s cars.

Toyota’s competitors have tried to capitalize on the company’s troubles by offering trade-in deals to Toyota owners. But it is still unclear what effect the recalls might have on Toyota’s sales in the United States.

Edmunds.com, a Web site that provides car-buying advice, forecast that Toyota’s market share for January would fall to a four-year low. But AutoTrader.com, which tracks consumers’ shopping habits, said consideration of Toyota brands had actually risen over the last few days.

Mr. Blackstock, the California dealer, said he hoped repairs could be completed quickly. He said he did not think the recalls would have a lasting effect on his business, or that of Toyota.

“If this is the worst thing that happens to us this year, it should be a pretty good year,” Mr. Blackstock said.

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