Employment contracts
IT is very important to note where employment contracts come into the picture in any employment relationship. The management of the individual contract is crucial to the implementation and fulfilments of the business plan. How the contracts are managed is very important. In this regard the reader’s attention is drawn to our article of 18th August,2021.
Introduction
When we register a business, we have to fill in the application on a prescribed form. The questions asked in that form is designed to identify the nature of the primary function, its secondary functions if any. its location and the ownership of the intended business.
The certificate of registration will reflect the nature of the business according to what you fill in.
There are of course several ways of registering your business (i.e., by way of sole proprietorship, partnership, limited liability company, etc.) but despite the several shapes and form the basic features described above are all the same.
It is from these features we can identify and be reminded of the business objectives from which we develop the business plan and from the business plan the strategic business plan to of course the annual plan which bridges the gap from the now to the final implementation of the business plan through the strategic business plan.
Upon finalising the business plans: the manning level of the organisation, monetary objectives in terms of expenses, income and profits can be forecasted.
Functional structure
The implementation process begins by benchmarking the same key features highlighted in the registration process against the immediate (annual) business plan with of course eyes focused on the strategic and overall business plans.
In doing so we can then establish the functional structure of the organisation and accurately determine the organisational structure.
The functional structure will determine from the registered business objectives the core business function and the relevant support services.
Once this has been established the manning level can be properly determined function by function.
Each function will have specific skills set and from the required skill set the minimum qualification requirement will be determined accordingly to peculiarity of the respective positions established by the manning level process.
The organisational structure makes the functional and business plan visible. This is very important in terms of the implementation of the said plans by the human resources (employees) selected for their specific skills to carry out the respective functions of the organisation.
The functional structure and the business plan are the benchmark upon which the manning level, the minimum qualification requirement for each position and the human resources policy is forged.
One of the signs that indicate the absence of a visualised functional structure is when a support services position takes precedence over the core function positions. In an accounting firm the core function is the accounting service delivery function.
It would be unnatural to have the human resources support services function overriding the primary account service delivery function.
The logic is simple. How can one expect to achieve the business objectives when emphasis is placed on a peripheral function rather than the core where the business objectives are directly connected?
The functional structure together with the business plans (Business plan, strategi business plan and the annual) should always be implemented through the human resources policy.
In fact, organisational flow charts that were drawn without any due cognizance given to the functional structure cannot be relied upon.
They do not accurately depict manning level determined by the business plan and functional structure. This is how rightsizing of an organisation is determined. Human resources policy
Where people are involved, policies need to be put in place because it is through the policy that people can be effectively managed. A good policy is a policy that is aligned to the business plan, is in tune with the structural structure of the organization and compliant with the relevant law.
Managing your people with a policy that is aligned to the business plan, is in tune with the structural structure of the organization and compliant with the relevant law ensures the realisation of the business plan and the objects of the organisation.
Each function from the functional structure will require a specific policy translating the function to the people who will be required to carry out the function, their necessary skill set and the key performance indicators covering the said positions together with the respective functional process.
The board or owners of the business are the policy makers as policies are the executive tool executive management and standard operating procedures are the tools of management who oversee those in the lower echelons who actually implement the policies on the ground.
Whilst policies are normally generic and broad which it should be, on the other hand standard operating procedures are more specific and addresses the current issues and challenges on the ground.
I normally advice against combining standard operating procedures with policies and for good reason.
Policies should stand aloof from standard operating procedures for the simple reason that policies should remain at the policy level whilst the standard operating procedures be the prerogative of management to carry out their mandate so long as they do not deviate from the policy.
Having established the manning level: recruitment should be done according to the policy and employment contracts to reflect the said policy based on the structure with the appropriate key result areas and relevant performance indicators to ensure the recruited employees’ compliance and performance.
Conclusion
As employers, employer’s representative and/or even employees we should always remain focused on the objectives of the business. When we perform our respective responsibilities, we should always ask ourselves “… am I contributing towards achieving the objects of the business?”
Having employment contracts that are direct extension of a Human Resources Policy that is aligned to the business plan, is in tune with the structural structure of the organisation and compliant with the relevant law guarantee the realisation of the business plan and the objects of the organisation. In fact, this combination guarantees productivity. The employment contract and its management through the internal and external dispute mechanism ensures the fulfillment of the above-mentioned outcomes.
Noel Tofinga is the Industrial Relations consultant with the Fiji Commerce and Employers Federation. The views expressed in this article are his own.