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1. MBA | OB - HR - Legal | HR and Law for Business Managers - Coggle…
1. MBA | OB - HR - Legal | HR and Law for Business Managers
Employee Entry Management
Manpower Planning
The process of manpower planning involves the following steps:
Acknowledging the organisation’s business goals and objectives
Auditing the available resources
Estimating the optimum number of people to be hired
Source of recruitment:
Internal source
External source
Manpower planning can be done at two levels:
Adding more employees
Replacing old employees
Line managers are an important part of the recruitment process because they are more familiar with the job as compared to the HR managers
Job Analysis
Job analysis is the process of collecting information about the duties to be performed in a particular job. A job analysis also involves listing the characteristics of the people required for the role
Some of the job analysis methods are as follows:
Task inventory: Listing down the activities to be performed in a job
Observation: Observing and recording the key tasks performed
Interviews: Interviewing the supervisor or employees doing the same job
Diaries: Identifying tasks using the logbook recorded by the employees doing similar tasks
Identifying Job Competencies
Competency modelling is typically defined as the identification, definition and measurement of the Knowledge, Skills and Attitude (KSAOs) that are needed to be successful in a role
Job competencies can be categorised into the following three parts:
Core Competencies
'+ These are baseline skills that all candidates must have, to work in an organisation
'+ They differ across companies depending on their values, philosophy and goals
'+ They align with an organisation's strength and uniqueness
Functional Competencies
'+ These are skills and behaviours unique to each role
'+ They describe the behaviour or skills that employees need to be top performers
Leadership Competencies
'+ Leadership competencies are used for supervisory and management roles
'+ These include leadership skills and behaviours
Job posting:
Job Description
'+ A job description consists of a basic list of all the tasks and activities that are part of the job
'+ It also includes a company’s mission, vision, values, span of control and hierarchy
Job Specification
'+ It consists of the qualities and traits of the potential candidate
Consequences of not using the competency matrix:
More applications are received for a role than were feasible to process
Applications received do not match the hiring expectations
A lot of time is spent on interviewing and screening candidates
The candidate may turn out to be a misfit for the role
Screening and Interviewing Candidates
Résumé screening is of two types
Binary résumé screening
Subjective résumé screening
Some pre-employment tests are conducted to filter a large number of candidates:
Assessment centres: A group of candidates undergoes assessments in different categories at the same time, and the observers note their performances on each task and at each level
Intelligence quotient (IQ) test: On-campus selections are conducted through IQ tests. Candidates are put through group discussions and simulations to test their competencies before the final interview
Miniature job training: Candidates go through job training for a few weeks, and based on their performance, they are hired or rejected
Certain pre-employment tests that are conducted to test the skills of the candidates to be hired:
Intelligence tests (IQ): This measures the candidates’ general intellectual abilities, memory and analytical skills
Specific cognitive tests: This measures the candidates’ aptitude for the job in question. It involves testing verbal comprehension, deductive reasoning, mathematical abilities, etc
Motor and physical abilities tests: This tests the candidates’ strength and body coordination
Situational judgement tests: This helps assess an applicant’s judgement skills in relation to certain situations
Some pre-employment tests that are conducted to evaluate the applicants’ personality traits
Projective: The assessor shows an ambiguous image to the candidate and analyses their reactions to it
Self-reported test: In this test, candidates complete the assessments themselves
The screening process includes:
Coordinating with HR to create job postings for open positions to solicit résumés and employment applications
Conducting binary screening to eliminate candidates who do not meet the basic criteria of the position
Using a preliminary assessment to screen out those who lack the desired level of skills and competencies required for the job
Performing an in-depth assessment through interviews and job simulations to select candidates with the highest potential for job success
Verifying candidates’ stated employment records and qualifications
Interviews can be classified based on three types
Structured vs unstructured: In unstructured interviews, the manager does not follow a set format, whereas in structured interviews, the interviewer lists down the questions to be asked beforehand to avoid missing out on critical details
Content-type: In situational content, candidates are asked how they would react in certain situations. They are presented with a hypothetical situation and are asked how they would handle it. For example: How would you pitch our product/service? | In behavioural content, candidates are asked how they behaved in certain situations in the past. For example: Describe a time you disagreed with a supervisor | In job-related content, candidates are asked some specific questions about their relevant job experiences from the past
Administering: In administering, interviews can be one-on-one or conducted by a panel. One-on-one administering involves one interviewer and one interviewee, whereas in a panel, multiple interviewers interview one candidate and then combine their responses to reach the final decision
Employee Orientation and Onboarding
The primary purpose of onboarding is providing new employees with basic background information about the company and their new jobs
As the line manager is responsible for conducting most of the orientation, they should understand how to align employees with company's vision
Employees should feel welcomed and start considering themselves as part of the team
Employees should have the basic information to do their jobs, such as email ids and access to other required internal platforms
Employees should understand the organisation’s vision, mission, culture and strategies
Employee Performance and Exit Management
Performance Appraisal and It's Methods
These advantages of conducting employee appraisals:
It increases employee motivation
It ensures that employees’ performance is contributing to the overall organisational goals
It helps identify deficiencies and make a corrective plan
It helps managers build career plans for subordinates
It helps managers identify team members’ training and development needs
Line managers should conduct appraisals since they are the ones who closely monitor employees’ performance
Benefits of quarterly feedback:
Helps employees get continuous and point-of-need feedback
Allows a manager to provide small chunks of advice on how to improve performance and share positive feedback regularly
Avoids the end-of-year list of ‘development points’ that can be overwhelming for the employee
The points that can be considered while sharing performance feedback
Identify if an employee is struggling (Workload/work condition)
Listen to the issues that employees are facing
Evaluate the situation
Come up with a plan together to address the issue
Review performance on a regular basis
Performance management is a continuous process, and it should be linked to the broader mission and goals of an organisation
Engagement Strategies
Three dimensions of employee engagement
Physical engagement
Cognitive engagement
Emotional engagement
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Common tactics to increase employee engagement
Assigning everyone correct roles
Focusing on diversity for better engagement
Providing incentives and perks to each engaged employee
Recognising employees for jobs done well
Encouraging employees to speak their mind, without any fear of criticism or judgement,
Developing a sense of affiliation among employees to keep them connected and
Providing a progress road map for the employees
Factors that motivate your team members at work
Intrinsic motivation: Working on task because it is intriguing and not for the external incentives
Extrinsic motivation: Behaviour driven by rewards and recognition
Managing Employee Voluntary Exit
The manager has to keep three important points in mind when an employee departs
Be courteous and help the employee leave the organisation graciously
Offer the employee assistance
Document and communicate everything to ensure a seamless process
Some situations in which a manager could think of retaining a departing employee:
The departing employee is hardworking and valuable to the organisation
The employee departure cost is very high
The high turnover rate affects organisational performance
There is a talent scarcity
Departing employees can be segregated into four categories based on their reason to exit:
Dissatisfaction: Approach this category with traditional retention strategies such as monitoring workplace attitudes.
Better alternatives: Approach this category by conducting pay analysis or industry analysis and offering better pay
Plans: Approach this category by increasing the reward linked to the employee’s tenure. The retention strategy, in this case, is to be developed case by case
No-plan: Approach this category by coaching the departing employees. Establishing clear communication also helps in this case.
Managing Employee Involuntary Exit
There are four major criteria for employee dismissal:
Insubordination
Unsatisfactory performance
Misconduct and
Change in job requirements
The manager has the following roles in employee dismissal:
Always plan the interview and keep all records and documents handy
Communicate the reason for dismissal clearly
Give the employee some time to adjust to the news
Listen to what the employee has to say
Explain the severance package clearly
Offer assistance to the employee
There are some points the line manager should keep in mind while disclosing the news of dismissal to other team members:
Disclose the news via a memo
Avoid disclosing the news in a meeting
Be mindful of the timing
Craft the message stating the reason for dismissal and emphasise the company’s culture and values
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Law for Business Managers I
Why should study law?
Studying law can help you with the following:
Deal with challenging business scenarios
Analyse your organisation’s legal needs and the impact of law on your business
Interpret legal documents
Distinguish between ethical and legal decisions
Studying law also has some advantages:
As an entrepreneur, you will be able to answer the right questions to create a suitable business model in terms of the legal structure and contracts
As a working professional, you will be able to anticipate and address legal, ethical and compliance issues that may arise at work
Regardless of your personal ambitions, you will be able to recognise which laws apply in a business landscape
Two types of lawyers
Commercial Transaction Lawyers: These lawyers focus on cross-border mergers & acquisitions and provide technical advice; They frame agreements and other transaction documents and specialise by industry
Dispute Lawyers: These lawyers analyse documents and appear in court; They specialise in a particular type of dispute
How do Laws Affect Business Decisions?
The various laws that affect business:
Trading or consumer protection laws: These are laws that protect customers from being deceived or misled
Competition protection laws: These laws are aimed towards protecting consumers from robust competition. They often arise from international treaties between countries
Data collection and privacy laws: These laws relate to services across borders, such as IT services, advertising services, banking services and customer services. They state the rights that a company has over customer data
Taxation or banking laws: These laws state the share of profits that companies need to give to the government. They also include rules and regulations on company directors for ways of raising money from investors or obligations.
Before signing a contract on behalf of an organisation, one must ensure the following
Only terms that have been authorised to add in a contract are included
Check the laws of the area or jurisdiction where the contract is made
Legal information can be validated using the following:
International law and consulting firm websites: These provide a general outline and help identify the right questions
Regulators to check for privacy regulators in a particular jurisdiction
The legal issue revolved around three factors:
Contract law: What the terms of the employment agreement mean
Intellectual property law: Whether anyone can ‘own’ an idea
Employment law: The extent to which tasks that an employee does on their own time that are relevant to their employment that might be owned by the employer
Types of Legal Systems
Three types of legal systems
Common law: A common law system is where legal principles are developed by judges through cases that are decided in courts. It originated in England and is most often seen in countries that were British colonies.
Civil law: Civil law uses non-adversarial and inquisitorial approaches to determine the meaning of the written law. It has been adopted in the area of International Trade. It originated from Roman law and the Napoleonic codes and is found in Europe and Asia
Religious and customary laws
Civil Law:
Attempts to encompass the full spectrum of civil and criminal matters to be adjudicated in a court
Outline how each matter should be dealt with and what remedies should be applied
Civil law judges investigate the facts of a case before applying them against the relevant sections of the civil code
Common Law
Not as comprehensive as the country civil law; the courts play an important role in developing the law
Is derived from records of decisions made by judges
Common law judges actively shape the laws and act more as mediators than investigators in a dispute
Legal Business Structures
Choosing a business structure
Ease of Conducting Business
Liability of a Business
Sole Trader & Partnership
The features of incorporated entities
A separate legal person under the law
An entity has legal rights as per the statute laws
An entity can sue and be sued under their own name
The assets and obligations of an entity are separate from those of the owners
An entity cannot lend money from shareholders on non-payment to creditors
Raising funds from investors for a business with this structure de-risks operations for founders
Investors investing in a company’s equity benefit from the increased value of the business when it is successful
Private & Public company
Role of Agencies in Handling Company Legalities
‘Agency’ is a legal term that refers to the relationship between a company and the people who are authorised to do things on its behalf, technically, a principal and an agent
One can build relationships with agencies by:
Manifesting of an intention by both the principal and the agent is required for creating the agency relation
The intention could be in verbal or written form
Different types of authority
Actual authority
In actual authority, an agent possesses authority when they act on behalf of the principal and have a reasonable belief that the principal requires this action to be undertaken
It includes expressed authority, in which the principal tells the agent exactly what to do
It can arise as a consequence of the agent’s appointment.
Implied authority
Implied authority occurs when an agent takes actions that are necessary to accomplish the objective of the agency
Other aspects to be considered about maintaining relations with agencies include
Whether or not an implied agency exists will always be a factual determination for a jury or a judge to determine in the event that something goes to the court
The terms of the agency arrangement set the limitations and scope of the agency arrangement
Agents must put the interests of the principal ahead of their own
If an agent has access to the principal's property, they must not make it appear to be their own or mix it with the property of other parties.
A contract that is signed by an agent on behalf of a company will be treated as a contract that has been signed by the company.
Law for Business Managers II
Legal Documents and Terminologies
Contracts: These are formal documents that parties sign to deal with big transactions such as buying and selling things, and mergers and acquisitions
Personal legal documents: These are documents that describe what happens to your belongings when you die, or powers of attorney that allow someone else to sign things for you if you are away or unwell
Court documents: These are orders made by a court and are generally given in a document form
Legal terms
Ab Initio: Means ‘from the very beginning’; Refers to a particular state in a legal contract ; Example: A contract is ‘void ab initio’, which means that it was void from the very beginning, i.e., there never was a contract at all
Ultra Vires: Means ‘beyond the powers’ or outside the law; Used when talking about the power that a government or court wields; Example: If the government imposed tax on your imports in excess of the amount allowed under relevant treaties, you would state that the government ultra vires to charge that tax, so you would not have to pay it
Ex Parte: A Latin term for ‘for one party’
Mens Rea: Literally translates to ‘guilty mind’ and refers to criminal intent; Refers to a criminal’s state of mind when committing a crime
Res Ipsa Loquitu: Means ‘words speak for themselves’; Simple interpretation of the language should be favoured over any complicated or convoluted meaning
Chose-in-Action: A legal right to recover something
Estoppel: Circumstances where one is prevented from exercising legal rights because it would be unfair to allow them; Example: The landlord has a legal right to collect outstanding rent, but it would be unreasonable to enable them to do so when the premises are in a poor condition
Voir Dire: The name given to the process of working out whether certain evidence is admissible in court
Basic Structure of a Contract
A difference between agreements and contracts is that all contracts are agreements, but not all agreements are contracts. Contracts are agreements that can be enforced by the court that identifies the responsible party and the exact details of the agreement. This helps parties to de-risk their operations and reduce costs
Title: On the front page of the contract; Gives an idea of what the agreement is about
Parties: Clearly state names of the parties of the contract; Usually stated at the beginning of the document
Date: Makes the contract effective and binding on the parties; Important for revenue recognition, tax and even insurance reasons; Often found on the front page of the document or where the parties sign
Recital: Not treated as part of the contract; Provides a quick summary of the agreement
Words of Agreement: Indicate the parties’ intention to manifest their agreement to the promises contained in the document; Appear after the recitals; Help a court know that the promises that went before were not intended to be binding
Definition and Interpretations: Kind of a glossary of common terms; Included when there are terms that are frequently used in a contract; Interpretation provision sets some rules about how the agreement should be read
Substantive Provisions: Provided in chronological order ; Set the obligations and related timelines; Sometimes referred to as ‘actions section’
Termination and Remedies: Usually placed after the ‘Actions’ section; If the promise is a condition, the other party usually has the right to terminate the agreement; In case of breach of warranty, damages may be available, but the party suffering the damage cannot terminate the agreement
Boilerplate Provisions: Also known as general or miscellaneous provisions ; State what jurisdiction will govern any disputes in the contract; Set out terms and conditions of notices to the other party
Signature Lines and Attachments: The contract ends with the signatures of the parties involved and the attachments; Attachments contain crucial information about what the parties need to do; Prepared by business people rather than lawyers
Interpretation of Legal Documents
Two ways of interpreting a legal document
Statutory interpretation: This refers to interpreting terms used in the document that arise from public laws that are applicable to all citizens of a jurisdiction and businesses in general
Contractual interpretation: The document, in this case, a contract, should be clear and comprehensive enough to understand the industry the parties operate in, the reason for entering into the contract or even past dealings between the parties
When reading a contract, one must look for the following things
Are all the parties named?
Are there any key people who should also be named
Does it set out all the things that you expect the other party to do? If not, your business might not get all the things you expect.
Does it set out all the things that you expect your business needs to do, and nothing more? If there are extra requirements, then are you going to be compensated for them
Payment terms - Have you built in the requirement to wait for payment into your cash flow analysis of the deal? Have you considered when you will be required to pay suppliers if you are waiting on payment? What are the risks of never being paid?
What types of things might go wrong that could delay or prevent your business from keeping your promises under this agreement? What about delays in your own supply chain? Or bad weather events? Are these matters addressed in the agreement?
Are there any acronyms or terms of art used in the agreement - would a judge know what they mean if the agreement was the subject of a court battle? Are all the key terms defined
Business Ethics
To understand the meaning of ethics, you first looked at what is not ethics:
Ethics is not the same as feelings.
Ethics is not the same as religion.
Ethics is not the same as following the law.
Ethics is not the same as following culturally accepted norms.
Ethics is not science
Business people make decisions every day, and making good ethical decisions requires the ability to identify and understand ethical issues and a process for weighing the values that underpin that decision-making process.
Identify the Ethical Issues
(What is the problem you want to address?)
Could this decision or situation be damaging to someone/a group, or be unevenly beneficial to people?
Does this decision involve a choice between a good and a bad alternative, or perhaps between two ‘good’ or two ‘bad’ alternatives?
Is this issue about more than solely what is legal or what is most efficient? If so, how?
Get the Facts
(Gather information required for the case)
What are the relevant facts of the case? Which facts are not known?
Can I learn more about the situation?
Do I know enough to make a decision
Which individuals and groups have an important stake in the outcome?
Are some concerns more important than the ones considered for the case? Why?
What are the options for acting?
Have all the relevant persons and groups been consulted?
Have I identified creative options?
Evaluate Alternative Actions
(Find the best suitable way to deal with the issue)
Which option best respects the rights of all who have a stake?
Which option treats people fairly, giving them what they are due?
Which option will do the most good and the least harm for as many stakeholders as possible?
Which option best serves the community as a whole, not just some members?
Which option leads me to act as the person I want to be?
Choose an Option for Action and Test It
(What is the best option to address the issue?)
After an evaluation using all of these lenses, which option best addresses the situation?
If I told someone I respect (or a public audience) the option that I have chosen, what would they say?
How can my decision be implemented with utmost care and attention to the concerns of all stakeholders?
Reflect on the Outcome of the Decision
(End result of addressing the issue)
How did my decision turn out, and what have I learnt from this situation?
What (if any) follow-up actions should I take?
