Transition Matters for Agency X

Transition Matters for Agency X

Introduction

Agency X will have a prosperous future. The existing economic boom is an appropriate time for the company to make long-term decisions for the business, especially concerning human resources. Accordingly, the report gives guidelines on how the firm can manage legal matters, forecasting, hiring, selection, and job design as it completes the transaction.

Preliminary Legal Report

As Agency X moves towards promoting individuals from within the company and outsiders, the HR should be aware of laws that govern the recruitment, selection, and hiring practices. The first law is the Age Discrimination in Employment Act (ADEA) (Noe, Hollenbeck, and Gerhart 116). ADEA prohibits companies from firing workers who are over 40 years old. The other law is the Pregnancy Discrimination Act. According to this Act, the company cannot refuse to hire a woman because she is pregnant or has a pregnancy-related condition or existing prejudices concerning pregnant women in the workplace. Another policy is the Americans with Disabilities Act (ADA) of 1990 that secures people with disabilities from being discriminated against in the workplace (119). Title VII of the Civil Rights Act illegalizes gender, race, color, religion, and national-origin-based discrimination. The Fourteenth Amendment accords every citizen equal protection in state actions. The Equal Pay Act dictates that women and men should be paid the same amount for similar work done unless under exceptional circumstances and factors other than gender. The Nondiscrimination Act of 2008 bars companies from denying individuals jobs because of their genetics. Agency X should adhere to the set laws for a successful outcome.

HR must be aware of the laws because they affect the company. ADEA and Title VII for starters impact Agency X, given it has more than 15 employees who work over 20 weeks annually (Noe et al. 114). Moreover, for Title VII, the business must consider the dress codes and promote policies that do not favor one gender over another (Berman, Bowman, West, and Wart 125). The Pregnancy Discrimination Act and ADA also apply to Agency X as the business has over 15 workers. Under ADA, HR should understand that administering an honesty exam, medical tests, or polygraph exams are not allowed (125). The Fourteenth Amendment applies to all the recruits as long as they are citizens and can sue the company if their rights under this law are violated. In the case of the Equal Pay Act, the business should notify the applicants that they will be eligible for equal pay and not show favoritism. HR should also know that the Equal Employment Opportunity Commission (EEOC) monitors how companies follow these laws. Hence, Agency X could be investigated if any violations are reported. In the Nondiscrimination Act of 2008, Agency X cannot demand genetic tests from applicants. Agency X should understand the laws because each has guidelines on how employment practices should be done.

Forecasting

Determining Labor Demands

Agency X can rely on statistical approaches to decide labor demand. A leading indicator is an objective measure that the firm can apply to predict the future of labor demand (Noe et al. 202). Another method is knowing the average number of people living within the vicinity of the firm. As such, if the average number of inhabitants increases, so is the possibility that demand for labor would hike. Statistical planning models are thriving where the history of the locality to determine any demand patterns. The statistical approaches should be supplemented with expert analyses because, at times, the models may fail to capture minor changes.

 Workflow Design and Analysis

Workflow design is a process of analyzing the necessary tasks in production before allocating these roles (Noe et al. 161). Comparatively, work analysis is the identification of the quality and quantity of the inputs so that the output meets the quality standards. Workflow design and analysis help in forecasting because the business can tell the number of tasks that are needed to complete a product. Workflow design and analysis help a company examine the demand for job categories by revealing what skills are required by a business to complete the production process. Agency X can also tell the labor (labor supply) that is necessary for quality output. Workflow design and supply help a business in forecasting.

Growth and Vacancy Dilemma

Some measures would be appropriate when dealing with unexpected labor supply. For long term purposes, Agency X should consider natural attrition, hiring freezing, and early retirement. Hiring freezing prevents the company from attaining unnecessary workers, keeping the costs at a minimum. Early retirement is ideal as long as the worker waives their DEA rights (Noe et al. 208). Transfers and work sharing are moderately fast options for addressing excess labor. In contrast, Fast-paced solutions like demotions and downsizing are unideal. Downsizing may help the company to reduce its costs but has long-term consequences like the loss of profits, talent, and low motivation among the surviving workers. Demotions demotivate the workers and lead to employee dissatisfaction. This can result in poor performance and affect the profitability of the firm in the future.

To relieve the vacancy challenge, some employment practices are appropriate. Overtime, temporary workers, and outsourcing are short-term solutions to the problem. Temporary workers reduce the training costs and testing programs because the temporary employment agencies complete these tasks (Noe et al. 211). Outsourcing services spares Agency X time and resources on training workers or purchasing proper equipment. In the long-run, the business should rely on technology. Paying overtime motivates existing workers to work more and spares the firm resources to train new workers (217). Technology helps in long term arrangement because the machines can complete tasks without human intervention.

Lean Production

The lean production strategy is appropriate. Even though the company is experiencing growth, lean production will reduce the waste of materials by using the ‘just-in-time’ concept (Noe et al. 161). The concept hails the practice of having the right quantity of materials when needed. The company also saves costs on workers by attaining the most cost-effective individuals who can maximize the resources of the company for maximum output. Lean manufacturing will save the resources of Agency X for difficult times.

Transitional Matrix

From the matrix, the project team members need a lot of human capital. For one, the team members have dismal possibilities of graduating to positions like project coordinator (1%), project management (5%), and 2% for an accountant role. A majority of the workers in this position (65%) will be in the same role. Unfortunately, 27% of this population will be out of the market by 2020. As such, there will be a substantial employment gap for project team members. Project coordinators are equally endangered. This is because there are zero chances of these people shifting to other roles. When 25% of the number leaves the business, a shortage of workers will ensue. Hence, Agency X should concentrate on team members and coordinators as they are the most vulnerable positions.

Recruitment, Hiring, and Selection Process

Hiring/Recruitment

General advertisement

An advertisement is an excellent way of finding individuals to recruit. Forthwith, the announcement should contain the official title of the company, the salary range, a description of the duties and responsibilities of the position, and the minimum qualifications for the position (Berman et al. 174). Equally, the announcement should list the special conditions of the job and the application procedures. A statement of equal opportunities should be listed. Other relevant details include unique benefits, which the employee will enjoy, the career potentials of the applicants, and the specific rank of the position. The announcement should be thorough and informative.

Accordingly, there are recruitment strategies that Agency X should use or avoid. When recruiting, the agency should use job postings. The approach is useful when the agency is looking for internal recruits (Berman et al. 177). Moreover, the postings can be placed on various job websites to attract external candidates. Referrals also work because the employees know fellow experts, saves on time, and there is a high possibility of finding the right fit. Private and public recruitment agencies will also source for the right candidate, reducing the time spent on a sound candidate. Nonetheless, the business should refrain from newspapers and magazines (228). The publications are costly and draw in a lot of unqualified individuals. Again, placing advertisements in universities requires the business to have a presence in the institution, which takes time. Agency X should adhere to the easy and direct methods.

To increase the chances of hiring qualified applicants, the business should do the following. The business should have an exemplary recruitment philosophy form the onset. As such, the questions to be asked should be wise and right for the position (Berman et al. 161). In addition, the agency should analyze the size of the labor pool and location as these two impact the number of applicants. The business should also consider its image (162). If Agency X is known for highly-skilled individuals, the applicants should reflect this trait. Lastly, the business should regard the job quality and find someone who is appropriate for the role. Agency X should analyze the above factors before deciding to hire people.

Legal issues

There are legal issues that the agency should consider when hiring. During the hiring process, the agency is legally allowed to conduct interviews. Moreover, the firm is permitted to use biographical data, and physical ability tests of the applicants but should be aware of the race and gender outcomes (Noe et al. 297). Other approved tests include an honesty test, although a polygraph is not administered. Drug tests are allowed but should be done within the law to avoid claims of intrusion. In addition, the drug tests should be given to all applicants vying for a similar position, especially for safety hazard positions.

Discrimination

Agency X should also stay clear of discrimination. To avoid discrimination, the business should identify groups that are protected by law, and include protected groups (age, race, gender, and religion, disability, and age (Noe et al. 261). The firm should have a recruitment policy that spells out equal opportunities to all applicants. Agency X should also be aware of intentional discrimination, retaliation, and harassment, which are illegal (Berman et al. 134). The business should also adhere to laws like the Civil Rights Act of 1964 that prohibits discrimination (261). Agency X should use the utilization analysis, a tool for demographic analysis, to enforce equal opportunity for employment. To know if any discrimination has occurred, the business should evaluate its hiring criteria, deliberate with experts, and regular performance evaluations.

Selection

Process

The selection process has four phases. The first stage is to distinguish between qualified and unqualified individuals. Henceforth, the HR analyzes the initial job qualification based on the job description and special cases (Berman et al. 227). The second stage is the identification and screening of successful applicants based on test and interview results. Documents like resumes and work samples boost the employee’s chance of scoring the job. Again, the third stage entails selecting the best choice for the position. Should the applicant accept the position, discussions on salary and benefits, and terms of work are completed (228). The qualifications and abilities of the candidate are confirmed in the last stage. HR can place the new worker on probation to gauge their abilities. The selection process enables a succinct review of a candidate before they are given a position.

Methods

The agency has several selection methods and criteria when selecting candidates. The first criterion is reliability. In this case, the selection method should provide consistent results (Berman et al. 225). The reliability element also reduces errors and biases that are likely in the process. The interview process, for example, is not reliable because of different questions or the panels. The different results make it a weak option. Alternatively, the validity test is essential. Such tests differentiate between various candidates. However, assessments like intelligence tests are not appropriate for predicting the success of the applicant within the firm. A validity test is crucial in assessing the relationship between the applicant’s performance and their ability to carry out the task (Noe et al. 254). To validate this alternative, the business should use a content validation test, which examines the responses of the applicants to different scenarios. Generalizability is also a useful test. Generalizability calls for numerous tests for the applicant to test their actual fit for a role. In effect, the interviewer can tell whether the applicant can survive in different organizational contexts. Generalizability can be tested using a validity generalization test. The bottom-line performance of business guides the utility tests. If the applicant is an extrovert and is applying for a sales position, for instance, he/she would get the job because they can interact with customers easily. The agency should use the above criteria before interviewing the applicants.

When applying for jobs, applicants should also include crucial documents. The experience evaluation and education documents include resumes, application forms, cover letters, and video resumes (Berman et al. 230). The recommendation letters are also useful. Other than the documents, tests are essential. The exams include performance tests, general skills tests, and psychological exams. The agency should request documents and processes.

Interviews

Accordingly, there are tips that the company should use when conducting an interview. The interviewers should ask questions about specific situations that are probable in that position to determine how the applicant would respond in the situation (Noe et al. 264). In addition, there should be future-oriented questions. Experience-based questions should be incorporated to unveil how the applicant responds to challenging circumstances. Of note is, the questions should be structured and standardized. The interviewers should refrain from asking behavioral questions directly (265). For instance, asking if a person is an honest worker can have misleading answers. Similarly, unstructured questions should be limited because they are unreliable and have low validity. HR should rely on structured and behavior-oriented questions.

Position and Organization Management

Job Analysis and Job Design

According to Noe et al. (p. 176), job analysis is the process of obtaining detailed information about a job. Job analysis enables the organization to understand a role and match the relevant requirements and individuals for exemplary performance. Job analysis helps in redesigning work to promote effectiveness and efficiency. The analysis offers important details about the job and whether or not it exists (Noe et al. 176). Moreover, analysis is useful in human resource planning as the managers assess the current needs and make adjustments to enable the business to thrive. Agency X can also select the most qualified applicants by reviewing their skills, abilities, and knowledge. In training, HR identifies the best programs and trainers based on analytical findings (Noe et al. 182). HR can also use analysis in job evaluation to determine the pay structure of the workers. Several occasions warrant job analysis. When the nature of a job evolves, which is rapid in today’s world, a job analysis should be done to ascertain the value, skills, and relevance. Further, analysis is applicable when creating new positions in business. Agency X should consider analysis when hiring and maintaining the existing workforce.

Comparatively, job design is a process of defining performance and tasks relating to a job. To design a job, HR should first thoroughly analyze the job using analysis and its position in the broader workflow process. Job design is vital for numerous reasons. For one, it helps the HR to structure work according to the physical qualities of the employee (187). This demonstrates ergonomic concern according to the biological approach of job design. The employees’ mental capabilities are also considered when assigning tasks to increase reliability and safety. Job design also motivates workers. According to the motivational approach, jobs have five traits: skills, feedback, task autonomy, significance, and task variety (186). These qualities can motivate workers and create a sense of satisfaction that improves the output of workers. Job design also creates operational efficiency as people are grouped based on their skills and specialization. Some instances warrant a job design. Job designs are useful when the business wants to have efficient work processes. Besides, job designs should be done when the company wants to have a competitive edge in the market. Typically, job design is done after job analysis. Job design improves the output of employees.

Proper Compensation

The right compensation is essential in employee retention, and the market survey helps in deciding the best pay ranges. To define, a market survey is a form of benchmarking activity where the organization compares its practices with similar companies (Noe et al. 502). The surveys should focus on the labor costs when it is a significant share of the overall operating expenditure, product demand, employee skills, and the supply of labor. Henceforth, a market survey reveals the payment range of employees. Using the payment range, Agency X can decide on the appropriate pay based on the skills of the worker and job description.

Other than the market survey, Agency X should consider more factors. Job evaluation is an essential element in designing compensation (Berman et al. 368). The evaluation consists of compensable factors that are weighted according to their perceived importance to the business. For instance, the complexity of a job, the working hours, and working conditions are elements that can be weighted when analyzing the pay. A point-factor system is used to allocate scores on these compensable factors to determine payment. The existing laws and policies also influence the compensation scheme. The government has wage and compensation policies Agency X must follow or face legal repercussions. Individual considerations like cost of living, longevity pay, merit pay, and skill-based pay should be regarded when Agency X is defining its payment structure.

As stated above, there are legal considerations when designing pay. The Equal Pay Act of 1963, to illustrate, prohibits pay discrimination based on gender or race, and agency X must ensure fairness in the payment plans (Berman et al. 388). Another law is the Federal Employees Pay Comparability Act of 1990 that seeks to reduce the pay gap between public and private sector workers. The Fair Labor Standards Act (FLSA) of 1938 guarantees the protection of the laborers, establishes the minimum wage at $7.25, and overtime compensation beyond the weekly 40 hours. Agency X should consider the legal requirements to avoid breaching laws.

Product vs. Function-Based Organizations

Product-based organizations have their merits and demerits. To begin with, product-based companies focus mainly on the good or service being sold. The departments and activities are created to facilitate the creation of the product. This approach has some advantages. The structure is innovative and flexible. Given that the employees understand their customer base, it is easy to exploit existing opportunities very fast (Noe et al. 170). Employees also specialize in different tasks and improve their skills. In effect, the final product is high-quality. Workers also prefer this approach because of independence. In fact, depending on the size of the unit, having a supervisor is unnecessary. The laborers also feel closely connected to their colleagues and cite fairness in decision-making. Even so, this approach is operational inefficiencies because each department works independently. Furthermore, the communication could be problematic if centralized and common communication systems do not exist. Redundancy is a common feature because of additional departments for the product when it is being expanded (Noe et al. 172). The divisions also risk cannibalization when one department performs exceptionally at the expense of another. Departments that have more than 150 people subject workers to low individuality, motivation, and accountability. Departments can point fingers and accuse one another should a product fail. Agency X should verify if the product-centered approach is appropriate for the business.

In contrast, the function-based organization is a viable option. Centralized decisions mark Function-based option. Functional structures experience dismal redundancy across departments. Again, workers are unlikely to make errors because of oversight by higher-level management. Functional companies also effectively control their resources and can have a competitive edge (Noe et al. 173). The system is also useful in unpredictable environments. However, the functional system is insensitive to a product, regional, or customer differences. A mistake in the system can impair an entire operation because of too much dependency. The employees also have little input in decision-making. The functional system has its gains and tradeoffs, which Agency X should examine before making the switch.

Conclusion

Agency X will have a smooth transition if it applies the insights on the application, recruitment, laws, and hiring, as discussed in the report. The company pays attention to the laws covering the aforementioned aspects. The strategies and methods for recruiting and selection will ease the hiring process. The business should also heed the practices to avoid when interviewing people or hiring workers. This report is a succinct guide for the business.

Works Cited

Berman, Evan M., James Bowman, Jonathan West, and Montgomery Wart. Human Resource Management in Public Service: Paradoxes, Processes, And Problems. Thousand Oaks, California: Sage Publications, 2016.

Noe, Raymond, John R. Hollenbeck, and Barry A. Gerhart. Human Resource Management: Gaining A Competitive Advantage. New York, NY: McGraw-Hill Education, 2015.