New Fangled HR Management

Rockie

My CEO went to a conference and came back and was telling me about companies that evidently operate without any policies or procedures. Example: No employee handbook, no disciplinary procedures, etc. Also, all employees are exempt. I'm all for streamlining the process and allowing me to spend my time on more worthwhile pursuits than disciplining and writing procedures, but I surely don't see how an organization can operate like this. One of these companies specifically named was in North Carolina.

I am especially concerned with how all employees in an organization can be made exempt and how the DOL would look upon this.

Do any of you operate like this or have you heard of any such thing?

Just curious.

Don D

I visited an organization once like that. There were no policies or procedures in place, no manuals, no written work instructions, no disciplinary procedures and no chain of command or organizational structure. The sign out front read "Fools Paradise".

Margaret Morford

Several years back there was a retail store chain whose policy manual was a card that said, "Do the right thing for the customer." I'm not sure they still do this because of problems that were encountered. While I'm not a great believer in lots of policies and procedures, I think you have to have some if for no other reason than to give employees an idea of what to expect and how they will be treated. Write lots of gray area into your policies to give you the flexibility to manage your business and help your employees, but you do need some policies.

Second, I cannot imagine a company where everyone would be exempt in the true DOL sense. Maybe this company treats their non-exempts like exempts and pays them full wages even if they miss a portion of the day. (Some companies use a category called salaried-nonexempt for this) However, this does not relieve the company of its obligation to pay overtime when these employees put in more than 40 hours. This sounds like the "radical business idea du jour".

Margaret Morford
theHRedge
615-371-8200
[email]mmorford@mleesmith.com[/email]
[url]http://www.thehredge.net[/url]

Christine M

Certainly I've heard of companies that operate without policies and procedures, without disciplinary action, etc. As long as no one ever challenges the way that things are done, there is never a question of discriminatory practices, and no one ever audits the company they may get by with it, but as the person who posted previously stated, "Fool's Paradise" is probably a great name for that company.

Policies exist to safeguard the company and the employees. They are guidelines for a uniformity of treatment that will never be there without them. Even if only one person ever determines everything that is done at that company, chances are extremely slim that he or she will be consistent over time. (Just think about how hard it is to be consistent with and between your children when you are raising a family!)

As far as the exempt issue is concerned, I guess if the company can ignore laws relevant to Sexual Harassment policies, etc. they can try to ignore the FLSA as well. Non-exempt means that employees are subject to the FLSA. To be exempt, the position must meet certain criteria that are spelled out within the law. It is NOT the employer's choice, but rather the law which determines exemption status.

Can they get by with it? Maybe, for a time, anyway. But the risks they are taking by not complying with HR-related laws and not having consistent procedures in place are extreme, and consequences can be very severe, both from governmental agencies and the courts.

Mike Maslanka

Sounds like the boss was impressed,is that right?...there is a book,I have it at home and will post later,that you should get,which talks about a workplace without performance appraisals...it may be a good source for you to start reading up on creating the kind of organization the ceo is now smitten with...regards from texas,mike maslanka,214-659-4668

Rockie

I think he was impressed from the standpoint of there is actually a possibiity of a company that could do this; I don't think he would be impressed with the results if he tried it in our company.

I can see getting by without performance appraisals, but I certainly can't see making everyone exempt and not having any policies and procedures.

Ah...but only if it were so....

Mike Maslanka

The name of the book advocating getting rid of appraisals is,naturally enough,"Abolishing Performance Appraisals" by Tom Coens and Mary Jenkins.

Rockie

Thanks Mike! I will get a copy of this.

WOCO Frank

Typically, abolishing performance appraisals is generally done because it's easier to not do them at all than it is to do them right. It's the HR equivalent of throwing the baby out with the bathwater.

Gillian

Yes, I have heard of it - from the extreme fringe of the labor attorney group as well. I guess the theory is that if there is nothing in writing one doesn't have to defend against a violation of a policy. Some organizations operate very well without job descriptions or performance appraisal so if that works in their culture, I don't see a problem with it. Policies, which are guidance for employees and supervisors alike is another matter. If your President does this, get ready to change your job description. You will go from writing policies which make sense to fixing problems because you don't have any.

Rockie

I think he has changed his mind about this subject. It all sounds very good in theory (really a Utophia), but in the real world and especially in the litigious state of South Carolina, I can't see this being a very valid path to go down.

Thanks for all your comments. I just wanted to see if I was missing something.