HR Manual

Policies &
Processes

Contents

o Introduction
o HR General
o Organization Credo
o Organization Mission
o HR Mission
o HR Organizational Chart

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Part One:
Organization’s Standards and Ethics

1. Code of Ethics
2. Place of Work
3. Dress Code
4. Personal data
5. Gifts to or from third parties
6. Health and Safety
7. Employee Involvement/ Organization Announcements
8. Behavior and Work Performance
9. Smoking
10. Communication

Part Two:
Work Regulations

1. Working Hours
2. Payment of Salary
3. Personal Properties
4. Expenses
5. Organization’s transportation Policy
6. Telephone System

Part three:
Policies, Processes

1. Hiring & Recruitment

2. Orientation
3. Probation Period
4. Attendance
5. Business Trips
6. Vacations
7. Payroll & Overtime
8. Performance Appraisal
9. Training & Career Development
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 10. Leaving the Organization
11. Forms

Part Four:
Benefits

1. Mobile Telephones
2. Transportation

Part Five:
Other Information

1. Lost & Found/ Personal Property

2. Disciplinary Procedures
3. Employees’ Complaints Procedures
4. Confidentiality of Information during and after
Employment
5. Other Employment
6. Notice Periods and Restraints

Part Six:
Forms

Part Seven:
Tests and Model answers

Part Eight:
Glossary

Introduction

I have the pleasure to introduce the first HR Management Book to

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Egyptian Organizations, The main objectives of issuing the Book are:
 HR General

Organization Credo

We believe that our first and most important concern

is our customers; we believe that we should provide them
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with superior products and services with fair prices on
time.

We also believe that our employees will grant or

deprive us from being a market leader; we therefore must
respect their dignity and recognize their merit. They
deserve fair compensation, healthy and safe working
conditions.

Our responsibility to our society is not of less

importance, we aim to be an environment friendly industry
and to maintain and protect our natural resources.

To assume previous responsibilities, we must keep on

working for a successful and profitable industry. Reducing
costs and expenses -but not reducing quality, continues
research, launching new products, all of which to guarantee
fair return and success to our establishment.

Organization mission statement

Technology
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 Our mission is a (Technology).products group with a strong
tradition of discovery. Our regional businesses are constantly
evolving and continually searching for new and better ways to
use our human, technological, and financial resources to
improve the quality of life of people

Products or Services
 Providing our customers with (Products or Services) which will
meet their needs & expectations.

Concern of Employees
 Enabling our employees "Becoming all they can be" by
developing their careers, compensate them with competitive
remunerations and fringe benefits, commensurate with their
contributions toward efficient group operations.

Customers
 Honorably serving the needs of the community by providing
products and services of an excellent quality at a fair price
on time to our customers based on our strong belief that
"Our Customers Deserve the Best".

Concern for Survival

 To be market leader in Egypt by serving the regional need for
our products & services at a fair profit by producing, and
distributing valuable products in a way that benefits our
customers, employees, and our society.

HR Mission

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Human Resources strive to be business partner in all Organization

activities alongside with its staff members by creating

sustainable competitive advantage through recruiting, developing,

motivating & retaining highly skilled and loyal individuals, who will

exert their maximum efforts and creativity to achieve

organization 's strategies & dreams.

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 ‫‪Transition of HR Development Strategy‬‬
‫التحول في استراتيجية تنمية الموارد البشرية‬

‫‪To‬‬ ‫‪From‬‬

‫إلـــــي‬ ‫مـــن‬

‫‪Strategic‬‬ ‫أعمال استراتيجية‬ ‫‪Operational‬‬ ‫أعمال إدارية تقليدية‬

‫‪Qualitative‬‬ ‫الكـــــــــــــــــيــف‬ ‫‪Quantitative‬‬ ‫الكـــــــــــــــــــــــــــم‬

‫‪Partners‬‬ ‫دور الشـــــريــــك‬ ‫‪Police‬‬ ‫دور الشـــــــرطـــــي‬

‫‪Long Term‬‬ ‫المـــدي الطــــويـل‬ ‫المـــــدي القصـــيـــر ‪Short Term‬‬

‫‪Consultant‬‬ ‫اســـــتـشــــــــاري‬ ‫‪Administrative‬‬ ‫أداري‬

‫المشاركة في أعمال المنظمة ‪Business‬‬ ‫‪Function‬‬ ‫العمل الوظيفي‬

‫‪Orientation‬‬ ‫‪Orientation‬‬

‫العمل يقوم علي دراسة مسبقة وقبل حدوث‬ ‫‪Reactive‬‬ ‫العمل يقوم علي رد الفعل‬
‫‪Proactive‬‬ ‫الفعل‬

‫التركيز علي ايجاد الحلول ‪Solution-‬‬ ‫التركيز علي األنشطة القائمة ‪Focused‬‬
‫‪oriented‬‬ ‫‪on Activities‬‬

‫‪-7-‬‬
 ‫‪Functions of HRM‬‬

‫دورادارة تنمية الموارد البشرية‬

‫‪Job Analysis / Desc.‬‬ ‫التوصيف والتحليل‬

‫الووظيفي‬

‫‪Personnel Planning and‬‬ ‫تخطيط القوي العاملة‬

‫‪Recruiting‬‬ ‫والتعيين‬

‫‪Training and Development‬‬ ‫التــدريـب والتطـــوير‬

‫دور إدارة تنمية‬

‫‪Appraising Performance‬‬ ‫الموارد البشرية‬ ‫تقييـــــــم األداء‬

‫‪Functions‬‬
‫‪Managing Careers‬‬ ‫إدارة وتطوير المسار‬
‫‪of‬‬
‫الوظيفي‬
‫‪HRM‬‬
‫‪Establishing Pay Plans‬‬ ‫انشاء خطط المرتبـــات‬

‫‪Pay for Performance and‬‬ ‫حـوافــز العمــــل‬

‫‪Financial Incentives‬‬

‫‪Benefits and Services‬‬

‫االمتيازات والخدمــات‬

‫‪Employee Safety and‬‬ ‫الصحــة واألمــــان‬

‫‪Health‬‬

‫‪-8-‬‬
 HR Organizational Chart

HR Director

Executive Secretary

HR Assistant Personnel Assistant E-HR & PC Specialist

Manager Manager

Personnel Clerk

HR Specialist HR Specialist HR Specialist HR Specialist

Training& Compensation& Evaluating Recruitment&
Development Benefits Performance Orientation

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 HR Director

Executive Secretary

Responsibilities:
1. Responsible for all department's in/out correspondence.
2. Prepare monthly ideal employee lists.
3. Prepare department's monthly achievement report.
4. Prepare vacancies ads.
5. Receive applicants CV's.
6. Arrange applicant's interviews with HR director.
7. English/Arabic translation for department's documents &
correspondence.
8. Prepare monthly news letter together with HR Director and
HR Senior Assistant.

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 HR Director

Personnel Assistant Manager

Responsibilities:
1. Responsible for all social insurance work in compliance with
social insurance law.
2. Preparing social insurance form for new employees (form
no.1) & its attachments.
3. Preparing social insurance form for resigned employees
(form no.6).
4. Preparing social insurance (form no.2) & its attachments.
5. Review employee's probation period reports.
6. Coordinates department's governmental relations.
7. Revise monthly wages to insure its compliance with
Organization rules & regulations.
8. Responsible for issuing and delivering labor bureau cheques.
9. Reviewing annual raise sheets & applying it according to
Organization policy
10. Revise periodical incentives reports.
11. Follow up and renew employees' contracts.
12. Arrange, follow up issuing and renewing official
documents of the group.

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 HR Director

HR Assistant Manager

Responsibilities:
A) Coordinates & communicates HR activities with all locations
B) Assists Group HR Director in the following functions &
activities:
o Processes, Policies & procedures related to HR functions.
o Computerizes forms, and facilitates all HR functions to
produce an Electronic HR System.
o Analyses performance appraisal for training needs &
development.
o Organizes training sessions both internally & externally.
o Organizes orientation programs for new employees.
o Prepares orientation booklet of group for new employees &
Group HR Manual.
o Screens resumes for required job vacancies.
o Conducts interviews for applicants with HR Director.
o Assists Group –HR Director with all HR-related issues such as
job description, recruiting, performance appraisal …..ETc.
o Initiates & organizes staff training activities (needs analysis,
arrange in-house & outside training courses, develop post
courses evaluation forms).
o Career development plans.
o Prepares HR- related presentations.

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 HR Director

E-HR & PC Specialist

Responsibilities:
1. Establish, renew & follow up employees' database.
2. Responsible for HR system (HRIS).
3. Responsible for issuing employees ID cards.
4. Executes an online HR manual on Organization's internal
network.
5. Assists HR staff in any activity related to HR system such
as: payroll, electronic timekeeping …)

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 HR Director

Personnel Assistant Manager

Personnel Clerk

Responsibilities:
1. Compile, copy, sort, and file records of office activities,
business transactions, and other activities.
2. Operate office machines, such as photocopiers and scanners,
facsimile machines , datashow.
3. Maintain and update filing, mailing, and database systems,
either manually or using a computer.
4. Deliver messages and run errands.
5. Type, format, proofread and edit correspondence and other
documents, from notes or dictating machines, using
computers or typewriters.
6. Any other office administrative work.

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 HR Director

HR Specialist
……………………………………………………..

Responsibilities:
1. Implements HR activities within the organization in coordination with
HR Director.
2. Assists Group HR Director in the following functions & activities:
a. Personnel activities (payroll, timekeeping, vacations, employees'
database…)
b. Processes, Policies & procedures related to HR functions.
c. Computerizes forms, and facilitates all HR functions to produce
an Electronic HR System.
d. Analyses performance appraisal for training needs &
development.
e. Organizes training sessions both internally & externally.
f. Organizes orientation programs for new employees.
g. Screens resumes for required job vacancies.
h. Conducts interviews for applicants.
i. Assists Group -HR Director with all HR-related issues such as job
description, recruiting, performance appraisal …..Etc.
j. Initiates & organizes staff training activities (needs analysis,
arrange in-house & outside training courses, develop post
courses evaluation forms).
k. Career development plans.
l. Prepares HR- related presentations.

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 Part One
Organization’s Standards & Ethics

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1- Code of Ethics:
The organization’s code of conduct applies to every employee and
provides employees with guidance in maintaining the ethical and
cultural values and standards of the organization that help
protect its reputation:
o Honesty:
Organization's Employees May Not:
- Have potential to, pay or receive any bribes in order to
obtain or maintain business.
- Carry out any act of dishonesty or intentionally
misrepresent the facts in any business transaction.
- Falsify corporate records, hide improper activities or fail to
accurately reflect the organization’s business.

o Political and Community Activities and Contributions:

The organization is not active in politics and does not make
political contributions; employees may participate on an
individual basis only, and outside the organization premises.
The organization encourages employees and managers to
practice their responsibility as private citizens and not as
organization employees.

o Conflict of Interest:
The organization’s conflict of interest policy is clear: Do not
compete with its business, and never let your work at the
organization be influenced by personal or family interests.

o Accounts and Record Keeping:

Our business files must reflect all components of
transactions. Appropriate records must be kept of all
transactions. It is the responsibility of the employee to
maintain these standards. Employees are expected to co-
operate fully with our internal and external accountants/
auditors. Information must not be falsified or concealed
under any circumstances and an employee whose activities
will cause false financial reporting will be subject to
disciplinary action.
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o Disclosure:
Every employee shall disclose directly to his/ her manager
any personal situation or transaction that may be in conflict
with the organization’s code.

2- Place of Work:
Your place of work will be as stated in your letter of
employment. However, on occasions, the organization may require
you to visit or work in another location related to the
organization or work.

3- Dress code:
It is important that the organization presents a courteous, smart
and efficient image. Personal appearance and dressing of
employees is one vital element. Employees are expected to
adhere to organization uniform during working hours. Employees
who have not predefined uniform are expected to be
appropriately and neatly dressed in business clothes in addition to
a neat tie at all times, and should not wear jeans or casual
clothes. Employees are required to maintain a high standard of
cleanliness and personal hygiene. Employees are also not expected
to be chewing a gum inside the office.

4-Personal data:
Any change to your personal details during your employment
should be notified to the Human Resources Department. Any
personal data on employees is always treated as confidential.

5-Gifts to or from third parties:

The giving or accepting of favors/gifts to or from a client,
potential client, supplier or potential supplier of goods or services
to the organization is not permitted unless what is given is of
nominal value, or if refusal to accept would be considered

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discourteous or harmful to the organization. “Nominal” in this
context means less than L.E. 50. If the value of the gift, favor
or benefit exceeds L.E. 50, approval must be taken from your
manager. Employees may accept and keep items of, for example
calendars, block notes, stationary…etc

6-Health and Safety:

The organization is committed to providing a safe and healthy
work environment and to comply with all applicable environmental,
safety, and health laws and regulations.
The organization is dedicated to developing, maintaining, and
operating facilities that protect our people and physical resources
and to ensuring that work is done safely according to established
safety codes and procedures. It is the employee's responsibility
to maintain and follow these safety standards.

7-Employee Involvement/ Organization Announcements:

Regular contact and exchanges of information between managers
and employees are encouraged and will be maintained by team
meetings. Organization announcements will be publicized through
notice boards. Employees can also publish notices on these
boards, in such case prior approval of HR Director is required.

8-Behavior and work performance:

Employees must maintain a polite, friendly, and cooperative
attitude to one another and to avoid any conduct annoying or
provoking to one another. At the work, each employee is required
to work considerately and not to carry out any other activity.
The following are prohibited at work:
o Sleeping or resting.
o Any criminal activity.
o Any behavior likely to outrage normal standards of morality
and decency.
o Swearing or use of unpleasant or rude language.

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o Language or behavior inappropriate to any segment of the
population at large, whether sex, race, religion, nationality…
etc
o Hitting another employee, with or without any object.
o Interfering in any way with any belongings of any employee or
with any organization property entrusted to him.

Employees with any complaints concerning the behavior or

treatment of another employee may make report to their
manager or Human Resources department, which shall be treated
in confidentiality.

9- Smoking:
Smoking is a considerable irritant to many people, in addition to
being a serious health risk to both smoker and to those nearby.
Smoking is therefore not allowed in all parts of the organization,
smoking is allowed only outside the organization premises.

10- Communication:
Effective communication is the lifeblood of any efficient
organization. One of the organization's aims is, therefore, to
establish efficient and effective lines of formal and informal
communication whilst at the same time reducing bureaucracy to a
minimum.
Communication structure in the Organization is as follows:
o Manuals and documentation
o Reports
o Family Meetings
o Email
o Internet
o Notice boards
o Intranet

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 Part Two
Work Regulations

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1- Working hours:
The organization expects the employees to be at work regularly
and on time. The standard flexible working hours are from:
6 days/week locations:
Starting hour 8:30am – 9:00am
Leaving hour 5:00pm – 5:15pm

To avoid being penalized, every employee should satisfy full

working hours per day with an hour break for praying, eating
…etc within the office. In case of coming to work after 8.30 am
or working hours is less than 9 hours per day, such day will be
deducted from the annual leave of the employee. In case of lack
of vacation balance; the day will be deducted from the monthly
salary.
Although it is appreciated that many managerial staff works
longer hours, they have to sign at the attendance sheet upon
arrival and departure.
During Ramadan, working hours change. Changes in the working
hours will be announced to all employees in advance.
The organization reserves the right to request different or
additional hours of work if business requirements make this
necessary.

2- Payment of Salary:
Salaries are stated in your letter of employment/contract and
are paid monthly by the end of every month.

3- Personal Properties:
In case employees want to bring any material, documents, floppy
disks, CDs or other stuff inside the organization, s/he has to
register such stuff at the security office upon arrival to work in
the morning.

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4- Expenses:
All reasonable expenses incurred during business or travel outside
organization may be paid back if receipts support them and are
approved by the relevant authorized signature. Employees must
not authorize their own expense claim. All employees are required
to comply with the organization’s expenses policy issued and
adjusted from time to time by the Finance Dept. / HR Dept.

5- Organization’s Transportation Policy:

Services' staff is allowed to use the company’s bus for free
while coming to & leaving from work.

6- Telephone System:
The organization expects employees to behave responsibly toward
telephone calls, and recognizes that in certain circumstances
personal calls need to be made. These should, however, be
limited to emergencies or work matters, which necessitate the
re-arrangement of personal matters. Also we have to bear in
mind & realize that our customers need to call us.

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 Part three

Policies & Processes

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 1-Hiring&Recruitment
In brief
Personnel planning and Recruitment

1-Developing personnel plans requires three forecasts: one for personnel requirements, one for the supply of

outside candidates, and one for the supply of inside candidates. To predict the need for personnel, first project

the demand for the product or service. Next project the volume of production required to meet these estimates;

finally, relate personnel needs to these production estimates.

2-.Once personnel needs are projected, the next step is to build up a pool of qualified applicants. We discussed

several sources of candidates, including internal sources (or promotion from within), advertising, employment

agencies, executive recruiters, college recruiting, the internet, and referrals and walk-ins. Remember that it is

unlawful to discriminate against any individual with respect to employment because of race, color, religion, sex,

national origin, or age (unless religion, sex, or

Origin is bona fide occupational qualifications).

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3-The initial selection screening in most organizations begins with an application form. Most managers use these

just to obtain background data. However, you can use application form data to make predictions about the

applicant's future performance. For example, application forms have been used to predict job tenure, job success,

and employee theft.

4-Personnel planning and recruiting directly affect employee commitment because commitment depends on hiring

employees who have the potential to develop. And the more qualified applicants you have, the higher your selection

standards can be. Selection usually begins with effective testing and interviewing, to which we now turn.

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Employee Testing & Selection

1. In this chapter we discussed several techniques for screening and selecting job candidates

The first was testing.

2-test Validity answers the question, "What does this test measure we discussed criterion validity and content

validity. Criterion validity means demonstrating that those who do well on the test do well on the job; content

validity is demonstrated by showing that the test constitutes a fair sample of the content of the job.

3. as used by psychologists, the term reliability always means consistency. One way to measure reliability is to

administer the same (or equivalent) tests to the same people at two different points in time. Or you could focus on

internal consistency, comparing the responses to roughly equivalent items on the same test.

4-There are many types of personnel tests in use, including intelligence tests, tests of

Physical skills, tests of achievement, aptitude tests, interest inventories, and personality tests.

5- For a selection test to be useful scores should be predictably related to performance on the job; you must

validate the test. This requires five steps: (a) analyze the job, (b) choose your tests,

(c) Administer the test, (d)relate test scores and criteria (e)cross-validate and revalidate the test.

- 27 -
6- Under equal rights legislation, an employer may have to be able to prove that his or her tests are predictive of

success or failure on the job. This usually requires a predictive validation study, although other means of validation

are often acceptable.

7. Some basic testing guidelines include (a) use tests as supplement to, (b) validate.

The tests for appropriate jobs, (c) analyze all current hiring and promotion standards, (d) beware of certain tests,

(e) use a certified psychologist, and (f) maintain good test conditions.

8. The work sampling selection technique is based on "the assumption that the best

Indicator of future performance is past performance." Here you use the applicant's

Actual performance on the same (or very similar) job to predict his or her future job performance. The steps are

(a) analyze applicant 's previous work experience (b)have experts list component tasks for job openings, (c) select

crucial tasks as work sample measures, (d) break down these tasks into steps, (e) test the applicant, and (f) relate

the applicant's work sample score to his or her performance on the

Job.

9. Management assessment centers are a third screening device and expose applicants to a series of real-life

exercise. Performance is observed and assessed by experts, who then check their assessments by observing the

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participants when they are back at their jobs. Examples of "real-life" exercises include a simulated business game,

an in-basket exercise, and group discussions.

10. Even though most people prefer not to give bad references, most companies still carry out some sort of

reference check on their candidates. These can be useful in raising red flags, and structured questionnaires can

improve the usefulness of the responses you receive.

11. Other selection tools we discussed include the polygraph, honesty tests, graphology, and the physical

examination.

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Interviewing Candidates

There are several basic types of interviews: situational, nondirective, structured, sequential, panel, stress, and

appraisal interviews. All interviews can be classified according to content, structure, purpose, and method of

administration.

2. Several factors and problems can undermine the usefulness of an interview. These are making premature

decisions, letting unfavorable information predominate, and not knowing the requirements of the job, being under

pressure to hire, not allowing for the candidate-order effect, and sending visual cues to telegraph enthusiasm.

3. the five steps in the interview include: plan, establish rapport, question the candidate, close the interview, and

review the data.

4. Guidelines for interviewers include: Use a structured guide, know the requirements of the job, focus on traits

you can more accurately evaluate (like motivation), let the interviewee do most of the talking, delay your decision

until after the interview, and remember the EEOC requirements.

- 30 -
5- The steps in a structured or situational interview are: job analysis, evaluate the job duty information, develop

interview questions with critical incidents, develop benchmark answers, appoint an interview committee, and

implement.

6. As an interviewee, keep in mind that interviewers tend to make premature decisions and let unfavorable

information predominate; your appearance and enthusiasm are important; you should get the interviewer to talk; it

is important to prepare before walking in-get to know the job and the problems the interviewer wants solved; and

you should stress your enthusiasm and motivation to work, and how your accomplishments match your interviewer's

needs.

7. a quick procedure for conducting an interview is to develop behavioral specifications; determine the basic

intellectual, motivation, personality, and experience factors to probe for; use an interview plan; and then match the

individual to the job... The procedure is especially useful in small firms with HR groups, but can be used in large

firms as well.

8. Value-based hiring can contribute to building employee commitment. It assume5 that management has clarified

the values it cherishes (such as quality at Toyota) spends adequate time in the selection process, and provides for

realistic previews.

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 RECRUITMENT PROCESS
END
START

Other Department
Request to fill a Alternatives Second Screening Orientation
Dept. job vacancy & Selection Program

HR Orientation
Program

Create Pool of CV’s Send Successful

Check Reason of Hiring First Screening & Conduct Interviews
(Ad/CV Bank/ Employment
HR (Replacement or New Internal/ Recruitment Selection (Together with Dept Candidate for
Process
Manager) CEO Approval
Activity) Agencies/ etc.)
(Managers to be
interviewed by CEO) -Employment
Documents
-Medical Checkup
-Personal File
-Salary &
Transportation
Arrangements
CEO No -ID/Attendance
Approval No Yes
Approval

Yes

- 32 -
- 33 -
 Policy of Hiring & Recruitment:
1-1 Prospective employees must submit all of the
following documents to the Human Resources
department within one week before joining the
organization:
o Birth certificate or an official copy
o A copy of the identity card, family card
or passport
o Certificate stating completion of military
service or final exemption from it
o 4 passport – size photos
o Criminal record
o Academic certificate
o Form six of social insurance (for those
who were previously employed)
o Registration certificate from manpower
office

1-2 Failure to provide any of the above documents in full

and accurate information as requested by Human
Resources Dept. during the application process shall stop
the employment process.
1-3 upon the completion of employee’s hiring papers, the
HR department sets the start date of the employee, and
informs the head of the department and announces the
hiring of the new employee through new employee
announcement.

- 34 -
 2- Orientation and training

1. In this chapter we focused on technical skills

training for new employees and for present

employees whose performance is deficient. For

either, uncovering training requirements begins with

analyzing the cause of the problem and determining

the training that may be needed. Remember to ask

whether it is a training problem or a more deep-

rooted problem like poor selection or low wages.

2. The training process consists of five steps: needs

analysis; instructional design;

Validation; implementation; evaluation.

3. Some principles of learning theory include: Make

the material meaningful (by providing a bird's-eye

view and familiar examples, organizing the material,

splitting it into meaningful chunks, and using familiar

terms and visual aids); make provision for transfer

of training; and try to motivate your trainee.

4. Job instruction training is useful for training on

jobs that consist of a logical sequence of steps.

Vestibule training combines the advantages of on-

and off-the-job training.

5. On-the-job training is a third basic training

technique. It might take the form of the understudy

method, job rotation, or special assignments and

- 35 -
committees. In any case, it should have four steps:

preparing the learner, presenting the operation

(Or nature of the job), doing performance tryouts,

and following up. Other training methods include

audiovisual techniques, lectures, and computer-

assisted instruction.

6. in gauging the effectiveness of a training program

there are four categories of out- comes you can

measure: reaction, learning, behavior, and results.

In some cases where training seems to have failed,

it may be because training was not the appropriate

solution.

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Orientation Policy:
2-1 on the first day of employment, the employee will
sign starting work form.
The first part of the orientation is handled by HR
department. The HR department will give the new
employee the employee handbook and explain a brief
about the organization, its departments and the flow
of work
2-2 The second part of the orientation is handled by
the department’s manager who will introduce the
employee to his/ her colleagues in the organization,
familiarize the new employee with the workplace and
explaining details about the organization and the job
description.

- 37 -
 3- Policy of Probation Period:

1. The HR department together with department head

monitors employee attendance records during the three
months of probation period, in addition to the overall
observation of employee attitude and performance.
2. Before completion of three months, the department
head should do a performance appraisal for employee.
3. The department head should then forward
employee appraisal to the HR department.
4. The HR department will review the employee
appraisal and will then put its recommendations in
coordination with department head with regard to the
following:
o Compensation review/ adjustments
o Insurance status
o Training needs
o Any uncommon situation, behavior, or
performance during three-month
probation period.
5. Employee appraisal and HR recommendations is
forwarded to MD for review and action if required.
6. The HR will inform employee for any adjustments
before the end of the probation period.
7. Those who have successfully completed the probation
period will sign the contract.
8. Insurance also starts after the three-month probation
period and is only granted for those who have
successfully completed the probation period.
9. If employee failed to pass probation period
successfully, s/he will be terminated immediately.

- 38 -
 Orientation Program & Probation Period Evaluation

START
END
HR HR Employment
Orientation Termination
Program

* First Day of Employment

(Morning Session)

No

Probation
Period Qualified
Department Evaluation
Dept. Orientation (After 3 months of hiring)
Program

* First Day of Employment Yes

(Afternoon Session)

General
Concerned Orientation
Depts. Program
Continue Employment
End&
Training/Development
* First Monday of Every Month
(One Day)

- 39 -
 4- Policy of Attendance
o All department heads must submit the monthly leaves plan
to HR Dept. a week before the beginning of each
month.
o All employees have to register their attendance (in/out) in
the attendance system used (cards, books, attendance
machines…etc).
o Late attendance will be calculated after 9:00 a.m. for
staff.
o The attendance penalty rules are monthly and are reset at
the beginning of each month.
o Attendance penalties are handled according to Organization
regulations and labor law disciplinary procedures as
mentioned in Disciplinary Procedures section.
o The HR dept. will provide every department head with a
monthly attendance report for all department staff at the
end of every month.

- 40 -
 5- Policy of Business Trips:
a- Internal business trips:
Procedures:
• Internal business trip form has to be signed by the
department’s manager and submitted to HR department one
day prior to its date.
• By the dept’s manager approval, the business trips are
allowed in the same/ next day.
• In case of transportation expenses incurred during
business trip, transportation expenses request has to be
signed by the dept’s manager and submitted to Finance
Dept. to receive such expenses every two weeks.

b- International business trips:

• International business trip form should be signed by the
Department Manager and Managing Director and submitted
to HR department two weeks prior to its date.
• Staff assigned to an international business trip is provided
with an air ticket, transportation expenses from/to
airport, and suitable accommodation in the host country
(hotel B&B reservation).
• Staff are provided with a daily allowance
(pocket money) equivalent to $/day. Daily allowance is
reviewed regularly and is subject to change according to trip
destination.
• Daily allowance covers staff expenses inside host country
including: lunch, dinner, drinks.
• In case Host Organization does not provide transportation, staff
transportation expenses are paid by the Organization.
• Phone calls should be very restricted and limited to
business related affairs. Using private mobile phones is strongly
recommended. Organization supply staff mobile phones with
roaming & international calls facilities.

- 41 -
 6- Policy of vacations:
6-1 Annual Leave
• The period of annual leave is 21 days with full pay for those
spent one complete year in the service, and increased to thirty
days once the worker spends ten years in service with one or
more employers, or for those over the age of 50 years old. The
holidays, the official occasion’s days off, the weekly days off is
not counted as part of the leave days.
• If the worker’s service is less than one year, s/he is entitled to
a leave in proportion to the period s/he has spent in work,
providing he has spent six months in the service of the
employer.
• The employer determines the dates of the annual leave according
to work exigencies and conditions. Employer should not interrupt
the leave except for strong reason(s) necessitated by work
interests.
• The worker starts his leave on the date and for the period
determined by the employer. If the worker refuses in writing to
go on leave, s/he forfeits his right to collecting their
equivalent. In all cases the worker obtains an annual leave of
fifteen days including at least six continuous days.
• The worker has the right to determine the date of his /her
annual leave if he is sitting for the exam in any educational
stages, providing s/he notifies the employer at least fifteen
days before s/he goes on leave.
• The employer has the right to deprive the worker from his/her
wage for the leave period, or retrieve the wage s/he has paid
for it, if it is established that the worker has worked during
leaves with another employer, without prejudice to the
disciplinary sanction.

6-2 Casual leave

The worker may abstain from work for casual reason for a
period not exceeding six days during the year, with a maximum
limit of two days each time. The casual leave is counted as part
of the annual leave determined for the worker.
- 42 -
 6-3 Public & official holidays
The worker has the right to a paid leave on the following
holidays:
o Christmas (January 7th )
o Arraft day, the first and second day of Greater Bairam (Eid
Al-Adha)*
o New Hijri year*
o Feast of Prophet Muhammad’s birth*
o Liberation of Sinai (April 25th )
o Labours' day (May the 1st )
o Easter (sham el-Nasseim)
o Revolution of July anniversary (July 23rd )
o 6th of October victory anniversary
o The first & second day of Bairam (Eid El- Iftar)*
*Public holidays which are determined on their dates according
to official announcement.

Public holidays for Christians only:

o Resurrection day.
o Palm Sunday

6-4 Pilgrimage/ visiting Mekka leave:

The worker spending five continuous years in the service of the

employer has the right to a leave of one month with full pay for
performing the religious pilgrimage duty, or visiting Mekka. That
leave is granted only once through his/her service period.

6-5-Sick leave:
a- Commercial establishments:
The worker whose sickness is established has the right to a sick
leave to be determined by the medical care provider assigned
by the organization or the state medical insurance. During that
period, s/he is entitled to a compensation wage as determined
by the social Insurance Law as follows:-
• 75%of his/her salary during the first three months.
- 43 -
• 85% of his salary during the consecutive three months

b- Industrial installations:
The worker whose sickness is established has the right to which
are applicable the provisions of articles (1) and (8) of law
No.21 for the year 1958 on reorganization and encouragement
of industry, has the right to a sick leave every three years in
the services, on the basis of one month with full pay, then
eight months with a wage equivalent to (75%) of his salary,
then three months without pay, incase the medical care provider
assigned by the organization or the state medical insurance
decides the likelihood of his recovery.
The worker may benefit from his frozen annual leaves; besides
the sick leave to which he is entitled. He may also request
transferring the sick leave into an annual leave if he has a
balance allowing for doing so.

6-6 Maternity leave:

A female worker having spent ten months in the service of the
employer or more has the right to a paid maternity leave of
ninety days. Comprising the period before delivery and after
parturition, she submits medical certificate states the expected
date of delivery, in addition to the birth certificate of the
child.
The maternity leave is not entitled more than twice throughout
the female worker‘s period of service.

6-7 Child care leaves:

A female worker has the right to obtain an unpaid leave for a
period not exceeding two years, to care for her child. This
leave is not entitled more than twice throughout her service
period.

Procedures:
1-Annual Leave:
• The employee must submit a leave request
form to department head 5 days before its due date, all
department heads must take into consideration the balance of
leaves sheet sent by HR Dept. monthly to all departments.
- 44 -
• All leave requests must be approved &
submitted to HR Dept. two days before their due date to
check vacation balance.

2-Casual leave:
• All leave requests must be submitted to
department head on the same day of resuming work.
• Upon approval of leave requests, all forms
must be sent to HR Dept. at the same day or on the next day
maximum.

Important remark:
In case of violating the above-mentioned procedures, the leave
period is considered as “leave without permission”.

7 -Establishing Pay plan-

1. There are two bases on which to pay employees

compensation: increments of time 'and volume

production. The former includes hourly or daily

wages and salaries. Basing pay on volume of

production ties compensation directly to the amount

of production .

- 45 -
2. Establishing pay rates involves five steps: conduct

salary survey, evaluate jobs, develop pay grades,

use wage curves, and fine tune pay rates;

3. Job evaluation is aimed at determining the

relative worth of a job. It compares jobs to one

another based on their content, which is usually

defined in terms of compassable factors like skills,

effort, responsibility, and working conditions.

4- The ranking method of job evaluation has five

steps: (a) obtain job information, (b) select clusters

of jobs to be rated, (c) select compassable factors,

(d) rank jobs and, (e) (e) combine ratings (of

several raters). This is a simple method to use;

there is a tendency to rely too heavily on

guesstimates. The classification (or grading) method

is a second qualitative approach that categorizes

jobs based on a c description or classification rules

for each class.

5- The point method of job evaluation requires

identifying a number of compensable factors and

then determining the degree to which each of these

factors is present in the job.

6. the factor comparison method, as explained in

the appendix, is a quantitative job evaluation

technique that entails deciding which jobs have more

of certain condensable factors than others.

- 46 -
7. Most managers group similar jobs into wage or

pay grades for pay purposes. These are comprised

of jobs of approximately equal difficulty or

importance as deter- mined by job evaluation.

8. The wage curve (or line) shows the average

target wage for each pay grade (or job). It can help

show you what the average wage for each grade

should be, and whether any present wages or

salaries are out of line. Developing a wage curve

involves four steps: (a) find the average pay for

each pay grade, (b) plot these wage rates for each

pay grade, (c) draw the wage line, and (d) price jobs

after plotting present wage rates.

9. Developing a compensation plan for executive,

managerial, and professional personnel is complicated

by the fact that factors like performance and

creativity must take precedence over static factors

like working conditions. Market rates, performance,

and incentives and benefits thus playa much greater

role than doe's job evaluation for these employees.

10. Broad banding means collapsing salary grades

and ranges into just a few wide levels or bands,

each of which then contains a relatively wide range

of jobs and salary levels.

- 47 -
11. Four main compensation issues discussed were

comparable worth, pay secrecy, inflation, and cost-

of-living differentials.

- 48 -
 Policy of Payroll & Overtime
a- Payroll procedures:
• Salaries are paid on the 29th of each month.
• Current month salary updates (appraisal
results/deduction/raises) are due next month.
• Performance appraisal forms & salary updates should
be submitted to HR on the 15th of each month to be
revised and sent to finance department.
• Any salary adjustments should be reviewed and
approved from HR Director and MD.

b- Overtime policy:
• It should be understood and known to all staff that
the Organization does not encourage overtime, but
only applied whenever work necessitate.
• All employees are strongly recommended to perform
their job duties during normal working hours. This in
turn entails the following:
o The economic and wise use of daily working hours and
the constant controlling and supervision from the side
of department heads.
o Continues development for employees' performance in
order to increase their efficiency.
Eligibility:
• Non-managerial staff, i.e. below grade "Manager".
• In case managerial staff works full day during
weekends or official holidays, then they are entitled
for full day vacation as a compensation to be added
to their vacation balance.
• Overtime policy is not applicable to sales staff.
Procedures:
• Each manager should submit overtime request
form to HR department indicating reason and
economic justification for overtime, required number
of staff and expected period. This form should be
submitted by the 20th of each month to be
implemented in the next month.

- 49 -
• HR Department reviews each department request to
verify work needs and then sends approval/denial to
department head.
• By the 15th of each month, time sheet forms signed
by department manager should be submitted to HR
department to calculate overtime hours for payment
with monthly salary.
• In all cases daily working hours should not exceed 10
hours/day.

Overtime calculation:
• Morning overtime hours (from 07:00 am to 07:00
pm)= normal pay + 35%/hour
• Night overtime hours (from 07:00 pm to 07:00 am)=
normal pay + 70%/hour

• Official holidays= normal pay + 200%/day

• Week end= normal pay + 100%/day + day off in the
next week

- 50 -
 Payroll Process

Employee Inform Inform

employee employee

Yearly Inform Promotion, new

Department performance department employee, resignation,
appraisal deduction

HR Information from studies Salary New Monthly Approve payroll

(ex: salary survey, increase payroll review & & prepare a
recruitment proposal structure payroll voucher
agencies…etc) calculation

Control & Doc. for

Inflation approve payment via
Finance rate & new voucher the bank or
budget cash
indication

NO Approval YES
MD Final
- 51 - approval
 Overtime Process

Start

Overtime Find other Implement Prepare time

Dept. Head Request* alternative overtime sheets
request

No

No Time
Calculate
sheets
Approval overtime hours
HR accepted
& entitlements

Yes Yes
Process
overtime
Finance payment with
* Indicates: monthly salary
1- Reason of overtime
- 52 - 2- Required staff
3- Expected period End
 8-Appraising Performance
In Brief

1. People want and need feedback regarding how they are doing and

appraisal provides an opportunity for you to give them that

feedback.

2. before the appraisal, make sure to clarify the performance you

expect so that the employee knows what he or she should be

shooting for. Ask "What do I really expect this person to do?"

3-Performance appraisal tools include the graphic rating scale,

alternation method, forced distribution method, BARS, MBO, and

critical incident method.

4- Appraisal problems to beware of include unclear standards, halo

effect, central tendency, leniency or strictness problem, and bias. .

5- Most subordinates probably want a specific explanation or

examples regarding why they were appraised high or low, and for

this, compiling a record of positive and negative critical incidents

can be useful. Even if your firm requires that you summarize the

appraisal in a form like a graphic rating scale, a list of critical

incidents can be useful when the time comes to discuss the appraisal

with your subordinate.

6. The subordinate should view the appraisal as a fair one, and in

this regard there are four things to do: Evaluate his or her

performance frequently; make sure you are familiar with the

person's performance; make sure there is an agreement between

- 53 -
you and your subordinate concerning his or her job duties; and

finally, so- licit the person's help when you formulate plans for

eliminating performance weaknesses.

7. There are three types of appraisal interviews. When

performance is unsatisfactory but correctable the objective is to

layout an action plan for correcting performance. For employees

whose performance is satisfactory but for whom promotion is not

possible the objective is to maintain satisfactory performance.

Finally, the satisfactory-promotable interview has the main

objective to discuss the person's career plans and to develop a

specific action plan for the educational and professional development

the person needs to move on to the next job.

8. to prepare for the appraisal interview, assemble the data,

prepare the employee, and choose the time and place.

9. to bring about constructive change in your subordinate's

behavior, get the person to talk in the interview. Try silence, use

open-ended questions, state questions in terms of a problem, use a

command question, use choice questions to try to understand the

feelings underlying what the person is saying, and restate the per-

son's last point as a question. On the other hand, don't do all the

talking, don't use restrictive questions, don't be judgmental, don't

give free advice, and don't get involved with name calling, ridicule,

or sarcasm.

10. The best way to handle a defensive subordinate is to proceed

very carefully. Specifically, recognize that defensive behavior is

- 54 -
normal, never attack a person's defenses, postpone actions, and

recognize your own limitations.

11. the most important thing you should aim to accomplish is to

clear up job-related problems and set improvement goals and a

schedule for achieving them.

12. Appraisals should also ideally serve a managing performance role

by providing a concrete basis for an analysis of an employee's work-

related performance. Creating more effective appraisals as

described in this chapter is one way to accomplish this. Others

suggest also taking a TQM-based approach. Characteristics of such

an approach include: making the appraisal scale as broadly

descriptive as possible so that it contains relatively few

performance categories and avoids a forced distribution; measures

results objectively; specifically identifies if the performance

deficiency is a result of motivation, training, or factors outside the

employee's control; uses 360 degree feedback; includes adequate

samples of work behavior; addresses problems in an atmosphere of

partnership and constructive advice; and bases performance

standards on an analysis of key external and internal customers'

needs and expectations.

- 55 -
Policy of Performance Appraisal
• There will be a performance appraisal after the three- month
probation period by department’s manager (as mentioned above
in the section of the probation period.)
• There will be also a yearly performance appraisal for every
employee by the department’s manager. The appraisal will then
be discussed with the employee to improve or adjust
performance. In addition, salary adjustments, promotion and
training recommendations will be made based on the appraisal.

- 56 -
 Performance Appraisal Process

Original for filing

HR
Distribution of & follow up
Appraisal
forms with Review & Yes
ensure actions (training
guidelines
(Nov.) consistency
of appraisal needs, promotions,
standards
SMARTS, etc…)
No

Preparing/ updating an
Sign
Dept. appraisal & interviewing Final Approval
Mgr Copy for
employee or distribute it
necessary

actions

Direct Preparing /
Mgr updating an
appraisal & Sign Approval
interviewing
employee
Copy for
follow up &
actions

Discussion the
Copy for
Employee proposed appraisal
information
with his/ her direct Sign Acceptance & actions
manager

- 57 -
 9- Managing Careers
In Brief

I. The key to managing your career is gaining insight into what you

want out of a career, into your talents and limitations, and into

your values and how they fit with the alternatives you are

considering

2. The main stages in a person's career are: growth (roughly birth

to age 14), exploration (roughly 15 to 24), establishment (roughly

ages 24 to 44, the heart of most people's work lives), maintenance

(45 to 65), and decline (pre-retirement).the establishment stage

may consist of trial, stabilization, and mid-career crisis sub-stages.

3. the first step in planning your career is to learn as much as you

can about your own interest, aptitudes, and skills. Start by

identifying your occupational orientation: realistic, investigative,

social, conventional, enterprising, and artistic. Then identify your

skills and rank them from high to low.

4. Next identify your career anchors: technical/functional,

managerial, creativity, autonomy, and security. Then ask yourself

what you want to do.

5. There are many sources you can turn to for learning about

occupations and careers. These include the Dictionary of

Occupational Titles, the Occupational Outlook Handbook,

Occupational Outlook Quarterly, the Encyclopedia of Careers and

Vocational Guidance, and the Office of Personnel Management's

Handbook Xl18.

- 58 -
6. The supervisor plays an important role in the career management

process. Important guidelines include: Avoid reality shock, be

demanding, and provide realistic job pre. Views, conduct career-

oriented performance appraisals, and encourage job rotation

7. in making promotion decisions, you have to decide between

seniority and competence, a formal or informal system, and ways to

measure competence.

8. More firms today engage in practices aimed at helping employees

"be all they can be," in other words, self-actualize. Training, job

enrichment, and educational opportunities are examples. However,

for many employees self-actualizing boils down to promotions and

career progress. Many firms thus institute comprehensive career

management/promotion-from-within programs.

9. Value-based hiring and developmental activities are two important

components of such programs. Value-based hiring is important

because promotion from within assumes you have employees who are

promotable in the first place. Career developmental activities

(including career assessment and planning) help employees identify

their career interests and more intelligently plan career moves.

10. Career-oriented appraisals playa crucial role in managing

careers. Here the super. Visor and employee link the latter's past

performance, career ~references, and developmental needs to

develop an appropriate career plan.

- 59 -
11. Career records/job posting systems are also important.

Maintaining career-related data on employees and then openly

posting all jobs ensure that the career goals and skills of inside

candidates are matched openly and fairly with promotional

opportunities.

- 60 -
9-Training & Career Development:
9-1 Training Policy & Procedures:
The organization believes that the training of employees is
necessary to operate successfully and to achieve overall
organization’s objectives, with full opportunities of updating and
attaining skills at all levels. The department’s manager and the
Human Resources department determine the training needs. HR
department selects the appropriate training methods and internal
/ external courses
The Basic Training process.
Any training program ideally consists of four steps, which are
summarized in the following figure below. The purpose of the
assessment step is to determine training needs which are
basically determined in the performance appraisal form. Then, if
one or more needs that can be covered through training are
identified, training objectives should be set; here you specify in
observable, measurable terms the performance you expect to
obtain from employees who are trained. In the training step the
actual training techniques are chosen and the training takes
place. Finally, there should be an evaluation step. Here the
trainees' pre- and post-training performances are compared, and
the effectiveness of the training program is thus evaluated.
The Four Basic Steps in Training

- 61 -
 ASSESSMENT
What are the training needs for this
person and/or job?

SET TRAINING OBJECTIVES

Objectives should be observable and
measurable.

TRAINING
Techniques include on-the-job training,
programmed learning.

EVALUATION
Measure reaction, learning, behavior, or results

- 62 -
- 63 -
 Training Process
1- Set training needs
according to next year Evaluate employee
Approve Yes
Dept. objectives. performance,
behavior, and
Head 2- Last year appraisal
attitude
results (performance
appraisal) No

Evaluation
report for
employee
Gather departments' Set dept. training plans Set Implementation: Evaluation & training
training needs (cost, training centers, Organization/gro 1- Arrangement & follow center &
HR OJT, OFJT) up annual 2- Inform dept. manager up keep copy
training plan & employee of
employee's
Certificate
of
Completion
Set alternatives

No Yes
MD Approve

Attend course Evaluate training center Prepare presentation to

Employee colleagues in
Organization Group

- 64 -
Training procedures

1. Each department head sets the training needs for department staff according to department's objectives
and performance appraisal results using Training Needs Assessment Form.
2. HR department receives the training plans of all courses from different institutes/centers.
3. A training plan for all departments all over the year is set by HR department according to (availability of
subject, its topic, quality, cost, duration, timing, place, etc…….)
4. Department's training plan is then discussed with concerned manager to be in line with department objectives
and Organization strategy and to assure that programs' content is suitable for employees' training needs.
5. Department manager will approve/not approve the whole annual plan for his department.
Training plan implementation:
1. After manager's approval on the plan and programs' content, the employee is informed with the topics of the
program.
2. HR sends a reservation of the training course to the center then sends the confirmation to the concerned
person & the department head.
3. HR receives the program invoice from the institute and sends it to finance for payment.
4. After completing training course, employee fills the Course Evaluation Form and sends it back to HR
department.
5. Employee delivers a copy of the trainee's certificate to HR for filing.
6. Department head fills the Follow up & Evaluation Form and send it to HR Department.
7. Employee prepares a course presentation to his colleagues.

- 65 -
9-2 Career Development & Promotions:
1. Promotions will be considered only in such instances where:
a) An employee is being charged with a broader mission/ increased scope of activity or any other
circumstances of greater responsibility with adequate knowledge, skill and ability.
b) Availability of opportunity, such as new business, job transfer, promotion, resignations…etc. In this case
the organizational chart must be updated to indicate new promotions.
c) Such promotions will add value to the department & to career development process of the employee.
d) The employee may be eligible to the next promotion after at least three years of his last one ( in
condition that s/he meets the above- mentioned conditions) unless in exceptional circumstances where it
may be sooner
2. Conversely, if an employee performs well in the grade he is in, there is no cause for promotion. In fact,
such satisfactory performance is the very confirmation that the employee in question is indeed in the proper
grade.
3. In case of an employee performing exceptionally well in his given responsibilities and within the grade s/he is
in, the organization bonus system will provide opportunity for adequate reward. There is no “automatic
increase” in grade due to the employee having performed satisfactorily in his/her grade over period of time.
4. In the course of ongoing appraisal discussions with the employee during mid-year appraisal (Section of
"supervisor's comments on self development of the employee" on page 6. of appraisal form), mention may be
made to the employee provided that conditions as outlined above under no. (1) Are existing, a promotion may
be considered.
5. The concerned manager should submit the following documents to HR Director:

- 66 -
 o Updated organizational chart (after promotion)
o New job description (for the new position).
o Promotion form
6. In case of a change in individual responsibilities as outlined under no. (1) Above having been gradually and
successfully- introduced in preceding months, availability of opportunity and organization management
approval, and such promotion will be considered as per the 1st of January of any given year.
7. To avoid possible disappointment of the employee as well as eventual embarrassment to organization
management, no promises in this respect will be given to the employee in advance, instead a corresponding
remark may be made in the mid- year appraisal form.
8. Salary increase due to promotion will be according to organization salary grades structure.

- 67 -
 10- Policy of Leaving the Organization

a. Termination:
In case of termination, attention should be paid to legal & financial issues.
b. Resignation:
• If the employee leaves the organization, s/he has to sign resignation letter 2 months before its due
date.
• HR conducts an exit interview with the resigned employee.
• In case employee persists on leaving the organization, clearance process starts as explained in
Resignation Process.

- 68 -
 Leave Policy: Termination Process
Start
Termination Report
with reasons
Dept (HRF-08-01)

Freeze any 1- Settle liabilities &

financial Start Clearance inform finance
Investigation Inform Entitlements: Process for Sign clearance Receive ID &
department for
Terminate? Yes employee Salary, employee form attendance
payments
HR about overtime, ‫استمارة إخالء‬ cards
2- Return Employment
termination incentives, ‫طرف‬
Documents; keep copy
etc.) of important documents

No

Sign financial / final

clearance statement
Continue work Sign resignation &
Form 6 Insurance
Employee

End

- 69 -
 Leave Policy: Resignation Process

Start
Employee Official Continue
Resignation Employment
Document

Copy of
Dept No Discuss Reasons Yes Analysis for
Acceptance With Employee & Successful
. Find Solution
Info & Action

Yes No

Yes
Accepted Exit Interview No
HR Resignation With Competent Convinced
Document Employee To Stay Start Receive ID & Settle Liabilities
Analyze Exit Freeze Any Clearance Attendance & Inform
(Interview and analysis conducted Interview Financial Process for Cards Finance Dept.
only with competent employees; for Results Entitlements Return Employment
for payments
Employee Experience
other employees financial Original Documents;
entitlements will be frozen) Certificate for
Employee keep copy in
(Salary, overtime, personal file
incentives… etc.)
Copy of (Consult & signature of the
MD Analysis for - 70 - End Direct Manager on the
Info & Action contents prior
to preparing certificate)
 PART FOUR

Benefits and services

- 71 -
 Benefits and services

In Brief

1. The financial incentives we discussed are usually paid to specific

employees whose work is above standard. Employee benefits, on the

other hand, are available to all employees based on their

membership in the organization. We discussed four types of benefit

plans: pay supplements, insurance, retirement benefits, and

services.

2. Supplemental pay benefits provide pay for time not worked. They

include unemployment insurance, vacation and holiday pay, severance

pay, and supplemental unemployment benefits.

3. Insurance benefits are another type of employee benefit.

Worker's compensation, for example, is aimed at ensuring prompt

income and medical benefits to work accident victims or their

dependents regardless of fault. Most employers also provide! Group

life insurance and group hospitalization, accident, and disability

insurance.

4. Two types of retirement benefits were discussed: Social

Security and pensions. Social Security does not just cover

retirement benefits but survivors and disability! Benefits as well.

There are three basic types of pension plans: group, deferred

profit!

Sharing, and savings plans. One of the critical issues in pension

planning is vesting the money that employer and employee have

- 72 -
placed in the latter's pension fund, which cannot be forfeited for

any reason. ERISA basically ensures that pension rights become

vested and protected after a reasonable amount of time.

5. Most employers also provide benefits in the form of employee

services. These include food services, recreational opportunities,

legal advice, credit unions, and counseling.

6. Surveys suggest two conclusions regarding employees' preferences

for benefits. First, time off (such as two extra weeks' vacation)

seems to be the most preferred benefit. Second, the employee's

age, marital status, and sex clearly influence his or her choice of

benefits. (For example, younger employees were significantly more

in favor of the family dental plan than were older employees.) This

suggests the need for individualizing the organization's benefit

plans.

7. the cafeteria approach allows the employee to put together his

or her own benefit plan, subject to total cost limits and the

inclusion of certain non-optional items. Several firms have installed

cafeteria plans; they require considerable planning and computer

assistance.

- 73 -
 Benefits
1- Mobile Policy:
1-1 Mobile Telephone Lines:
Mobile telephone lines required by staff for business purposes
are procured through HR department after prior authorization by
Department Manager & MD.

1-2 Mobile monthly allowance:

Eligibility:
a- Managing Directors and Directors
b-Sales Managers
c- Sales Reps
d-Administration staff

International Monthly
Coverage Local Calls Payment Procedures
Calls Allowance LE
• send mobile bills
to HR Director
• HR Director and
Senior
Business calls CFO review the
Management All covered -
only bills and send
(MD/Directors)
them to the
concerned
cashier
Sales Managers - -

Sales Reps - - Paid with monthly

salary
Administration
- -
Staff*

Notes:
a- Organization does not provide mobile sets, lines, or
cover any repairs costs.
b- Organization is not responsible for any problem that
may result from using mobile phones while driving
(accidents, license withdrawal…). Managers/Directors,
therefore, must adhere to Egyptian Law which states that
using mobile phones while driving is banned.
- 74 -
* Administration staff is eligible to mobile policy according to the
following conditions:
o Business needs as recommended by direct supervisor.
o Approval of HR Director & MD.

2- Transportation:
Eligibility:
a- Managing Directors and Directors
b-Sales Managers
c- Sales Reps (a separate policy attached)
d-Administration staff

Monthly Payment Procedures

Coverage
Allowance LE
Senior Management
(MD/Directors) Paid with monthly
salary
Sales Managers
Car ownership
Sales Reps
scheme
Actual
Expenses using
Administration Staff
public
transportation

Policy & procedures for Managing Directors, Directors & Sales

Managers:

a. The Organization provides eligible staff with a monthly

transportation allowance against using their private
cars/public transportation in business affairs inside Egypt.
b. Allowance amount covers: fuel, car repair/maintenance,
fines and renewal of car license.
c. Holidays during the month are deducted from allowance
amount.

- 75 -
3- Medical Insurance (Proposal):
1. All employees are eligible to Medical Benefits.
2. there is a yearly coverage ceiling for each category of
employees in which all medical services expenses are included:
a. Category A: 30000 LE
b. Category B: 22000 LE
c. Category C: 15000 LE
3. Medical service provided to employees are as follows:

Inside Hospital External

Category Ambulance Medicine
Treatment Clinics

First
100% of the
A Class/Single 100% of the cost 100% of the cost
cost
Room
First
100% of the
B Class/Single 100% of the cost 100% of the cost
cost
Room
First
100% of the
C Class/Double 100% of the cost 100% of the cost
cost
Room

Eye Glasses Monthly

(20% of Treatment Outside
Dental Critical
Category participants & for Medical
(LE/Year) Cases
every 2 years) chronic Institution
(LE/Year) diseases

A 900 400 In case of

emergenc
y or
10% of places
2% of
B 600 350 participan where
participants
ts medical
services
are not
C 400 300 available

Other Items:
1. Pre-employment examination for all employees.
2. On-site weekly doctor visits.

- 76 -
4- Life Insurance (Proposal):

a- Normal Death:
Where an employee suffers death during service, the
Organization provides a lump sum equal to the greater of the
monthly final salary as at the date of death multiplied by the
number of years of service of the employee. (Minimum payment
12 months)

b- Complete Disability:
Where an employee suffers complete disability during service,
the Organization provides a lump sum equal to the greater of the
monthly final salary as at the date of death multiplied by the
number of years of service of the employee. (Minimum payment
18 months)

c- Death Due to Accident:

For death by accident the Organization provides a lump sum equal
to the greater of the monthly final salary as at the date of
death multiplied by the number of years of service of the
employee. (Minimum payment 24 months)

d- Retirement:
On retirement from employment the Organization shall provide
employee with a lump sum equal to the final salary multiplied by
the number of yeas of service in the Organization provided s/he
spends 10 continuous years in Organization service

- 77 -
 Part Five
Other Information

- 78 -
1- Lost & Found/ Personal Property:
Any items of personal property that are lost or found in
workplace should be reported at the HR/ security office.

2- Disciplinary Procedures:
The organization’s policy and procedure on disciplinary matters
and job performance is designed to protect the interests of the
employees and the organization. The disciplinary procedure is
based on the Labor Law no. 12 of 2003 and the Egyptian work
and disciplinary regulations. Disciplinary action may be necessary
where expected standards of job performance or behavior are
not met, and aims to assist the employee to achieve and
maintain the required standards of performance.
Minor faults will be dealt with informally, but when informal
action has failed to produce the required improvement or when
the matter is more serious, the department’s head will use the
following formal procedures. You may consult the Human
Resources Department, which will normally be represented at
these stages.
The procedure:
Stage One – Verbal Warning
Stage Two – Written Warning
Stage Three – Final Written Warning
Stage Four – Dismissal
If the employee feels that he/she has been unjustly disciplined,
he/she may contact the Human Resources department.

Gross Misconduct:
The following are normally regarded as gross misconduct and
which, if proven, may result in dismissal without notice. Gross
misconduct includes: (but is not limited to):
1. Deliberate falsification of records.
2. Theft from the organization or any person on organization’s
workplace.
3. Any violation of account dealing rules including the giving or
accepting of gifts or favors to or from suppliers, customers
or officials.
- 79 -
 4. Any serious breach of organization’s rules or procedures.
5. Breach of confidentiality.
6. Serious carelessness that causes unacceptable loss,
damage, or injury.
7. Serious acts of insubordination.
8. Fighting or attack on another person.
9. Deliberate damage to organization property.
10. Being convicted of a criminal offence which in the
opinion of the organization proves unsuitability for further
employment with the organization.
11. Serious incapability through alcohol or being under the
influence of illegal drugs or other prescribed substances at
any time during the working day (whether or not in
workplace)
12. Behaving harmfully to the good name of the
organization and/or any group organization.
13. Any misrepresentation or false statement made during
the job application process relating to a person’s own work
or that of a colleague.
14. Racial or disability discrimination (including
harassment) of another employee, agency or any client of
the organization, visitor to the organization’s premises or
any other party to whom the organization may have a duty
to prevent such discrimination.

Serious Misconduct:
The following are normally regarded as serious misconduct and
which, if proven, may result in final written warning. For further
or repeated offence, subsequent stages in disciplinary procedure
will be used. Serious misconduct includes (but not limited to):
1. Refusal to carry out reasonable requests or instructions.
2. Repeated absences from work without permission.

General Misconduct:
The following are normally regarded as general misconduct and
which, if proven, may result in written warning. For further or
- 80 -
repeated offence, stages in disciplinary procedure will be used.
General misconduct includes (but not limited to):
1. Unsatisfactory record of attendance or reliability.
2. Repeated lateness.
3. Failure to maintain acceptable standards of dress.
4. Poor work performance.
5. Poor standard of personal hygiene.

3- Employees’ Complaints Procedures:

If at any time during employment with the organization, an
employee has a problem or complaint, every attempt should be
made to resolve it informally. In circumstances where this is not
possible, the employee can follow a formal procedure, which is
conducted in complete confidence. The procedure:
Stage One:
The employee should explain out his/her complaint in writing and
give it to department’s manager/supervisor who will arrange a
meeting to consider the matter. It is hopped that the matter will
be resolved at this meeting.

Stage Two:
If the matter is not resolved at stage one, the complaint should
be passed on in writing to the next level of management. The
complaint will be discussed both with the employee and the
manager/supervisor within ten working days of the meeting at
stage one, unless there is a good reason for delay.

Stage Three:
In those cases where the matter remains unresolved, the
employee may appeal to the top management where decision made
will be final.

General points:
o To avoid any possibility of misunderstanding and
misinterpretation, the complaint must be reported in
writing.
o At each stage of the complaint procedures the employee
concerned may be accompanied by a colleague of his/her
choice if he/she requires.
- 81 -
o Human Resources department is able to give advice to
employees about complaint procedures, and may be
contacted for discussion at any stage during the process.

4- Confidentiality of Information during and after Employment:

What an employee see or hear in the organization, stays in the
organization. During an employee's employment and if his
employment has ended, s/he shall not directly or indirectly use or
disclose to third parties, other than in the proper performance
of his/her duties for the organization, any of the secrets and
confidential information of the organization or any other group
organization. Upon hiring, all employees are obliged to keep work
date and information confidential as mentioned in article no. 15
in Employment Contract.

5- Other Employment (working with others):

As an organization employee, employees are not permitted either
to accept or continue any employment other than for the
organization. In exceptional circumstances, applications made by
employees to take up or continue other employment may be
considered provided that there is an added value to the
organization, the department’s manager is satisfied that such
employment does not interfere or conflict with responsibilities to
the organization and on the understanding that the organization
may withdraw its approval at any time. Any agreement to take up
or continue outside employment or appointment must be
registered with the Human Resources Department.

6- Notice Periods:
In case of employment termination for any reason, the employee
will be given, in writing, the following period of notice:
o During probation period: no notice period
o Thereafter and before completion of 12 months: two
month
In case any employee leaves the organization, two months period
of notice has to be given.

- 82 -
7- Return of Organization Property:
Upon end of employment for any reason, employee will
immediately deliver to the organization all the property– including
but not limited to documents, software, and keys belonging to
the organization or in his/her possession or under his/her control.

- 83 -
PART SIX

FORMS

- 84 -
 ‫السيد‪ /‬مدير إدارة ‪..................................‬‬

‫تحية طيبة و بعد‪،،،‬‬

‫نحيط سيادتكم علما بأنه سوف يتم إنتهاء عقد السيد‪ ....................................................... /‬فى‬
‫‪ . 200 /......................../...............‬و لذا يرجى من سيادتكم موافاتنا بتجديد العقد من عدمه لمدة‬
‫سنة أخرى مع ذكر األسباب‪.‬‬
‫مع وافر تحياتى و إحترامى‪،،،‬‬

‫مدير الموارد البشرية‬ ‫المدير األدارى‬

‫‪200 /‬‬ ‫‪/‬‬ ‫التاريخ‪:‬‬

‫السيد‪ /‬مدير الموارد البشرية ‪ /‬المدير األدارى‬

‫‪/‬‬ ‫‪/‬‬ ‫باألشارة إلى انتهاء عقد السيد‪ ............................................... /‬و الذى ينتهى فى‬
‫‪ . 200‬و كنتيجة لتقييم أداؤه فى خالل الفترة من بداية تعيينه حتى تاريخه أوصى بأن‪:‬‬
‫يستمر‬

‫ال يستمر‬

‫و ذلك لألسباب التالية‪:‬‬

‫‪......................................................................................................................................................‬‬
‫‪......................................................................................................................................................‬‬
‫‪......................................................................................................................................................‬‬
‫‪......................................................................................................................................................‬‬
‫‪.................................................................................................................................................‬‬

‫و تفضلوا بقبول فائق األحترام‪،،‬‬

‫‪200 /‬‬ ‫‪/‬‬ ‫التاريخ‪:‬‬

‫‪- 85 -‬‬
- 86 -
PART SEVEN

GLOSSARY

- 87 -
 GLOSSARY

1-The strategic Role of Human Resources Management

Management Process:
The five basic functions of planning, organizing, staffing,
leading, controlling.

Human Resources Management

The policies & practices one needs to carry out the "people" or
Human resources aspects of a management position , including
recruiting, screening, training, rewarding, and appraisal.

Authority
The rights to make decisions, direct others' work, and give
orders.

Line manager
A manager who is authorized to direct the work of subordinates
and responsible for accomplishing the organization's goals.

Staff Manager
A manager who assists and advises line manager.

Implied Authority;
The authority exerted by a personnel manager by virtue of
others' knowledge that s/he has access to top management (in
areas like testing and affirmative action)

Functional control
The authority exerted by an HR manager as coordinator of
personnel activities.

Staff (service) function

- 88 -
The function of an HR manager in assisting and advising line
management.

Globalization

The tendency of firms to extend their sales or manufacturing to

new markets abroad.
2-Equal opportunity & the law

Title VII of the 1964 Civil Rights Act

The section of the act that says an employer cannot discriminate
on the basis of race, color, religion, sex, or national origin with
respect to employment.

Equal Employment opportunity commission (EEOC)

The commission created by Title VII, is empowered to
investigate job discrimination complaints and sue on behalf of
complaints.

Affirmative action
Steps that are taken for the purpose of eliminating the present
effects of past discrimination.

Office of Federal contract compliance programs (OFCCP)

This office is responsible for implementing the executive orders
and ensuring compliance of Federal Contractors.

Equal Pay Act of 1963

The act requiring equal pay for equal work, regardless of sex.

Vocational Rehabilitation Act of 1973

The act requiring certain federal contractors to take affirmative
action for disabled persons.

School Board of Nassau County v. Airline.

U.S. Supreme court ruling that persons with contagious diseases
are covered by the Vocational Rehabilitation Act of 1973.
- 89 -
Vietnam Era Veterans' Readjustment Act of 1974
An Act requiring that employers with government contracts take
affirmative action to hire disabled veterans.

Pregnancy Discrimination Act (PDA)

An amendment to Title VII of the Civil Rights act that prohibits
sex discrimination based on "pregnancy childbirth, or related
medical conditions".

Federal Agency guidelines

Guidelines issued by federal agencies charged with ensuring
compliance with equal employment federal legislation explaining
recommended employer procedures in detail.

Sexual harassment
Harassment on the basis of sex that has the purpose or effect
of substantially interfering with a person's work performance or
creating an intimidating, hostile, or offensive work environment.

Merit or Savings Bank, FSBv. Vinson

U.S. Supreme Court's first decision on sexual harassment holding
that existence of a hostile environment even without economic
hardship is sufficient to prove harassment even if participation
was voluntary.

Still missing some notes

- 90 -
 3-Job Analysis

Job Analysis
The procedure for determining the duties the duties and skill
requirements of a job and the kind of person who should be
hired for it.

Job description
A list of job's duties, responsibilities, reporting relationships,
working conditions, and supervisory responsibilities- one product
of job analysis.

Diary/logs
Daily listings made by workers of every activity in which they
engage along with the time each activity takes.

Position analysis questionnaire (PAQ)

A questionnaire used to collect quantifiable data concerning the
duties and responsibilities of various jobs.

Department of labor job analysis

Standardized method for rating, classifying, and comparing
virtually every kind of job based on data, people, and things.

Functional job analysis.

A method for classifying jobs similar to the department of labor
job analysis but additionally taking into account the extent to
which instructions reasoning, judgment, and verbal facility are
necessary for performing job tasks.

- 91 -
4-personnel planning & recruiting.

Trend analysis
Study of a firm's past employment needs over a period of years
to predict future needs.

Ratio analysis
A forecasting technique for determining future staff needs by
using ratios between sales volume and number of employees
needed.

Scatter plot
A graphical method used to help identify the relationship
between two variables.

Computerized forecast
The determination of future staff needs by projecting a firm's
sales, volume of production and personnel required to maintain
this volume of output using computers and software packages.

Qualifications inventories
Manual or computerized systematic records listing employees'
education, career, and development interests ,languages, special
skills, and so on to be used in forecasting inside candidates for
promotion.

Personnel replacement charts

Company records showing present performance and promotion
ability of inside candidates for the most important positions.

Position replacement card

A card prepared for each position in a company to show possible
replacement candidates & their qualifications.
Job posting
Posting notices of job openings on company bulletin boards is an
effective recruiting method.

- 92 -
Occupational market conditions
The Bureau of labor statistics the U.S Department of labor
publishes projections of labor supply & demand for various
occupations, as do other agencies.

- 93 -
5-Employee Testing & Selection

Test validity
The accuracy with which a test, interview, and so on, measures
what it is purports to measure or fulfills the function it was
designed to fill.

Criterion validity
A type of validity based on showing that scores on the test
(predictors) are related to job performance (criterion)

Content validity
A test that is content valid is one in which the test contains fair
sample of the tasks and skills actually needed for the job in
question.

Reliability
The characteristics which refers to the consistency of scores
obtained by the same person when retested with the identical or
equivalent tests.

Expectancy chart
A graph showing the relationship between test scores & job
performance for a large group of people.

Work samples
Actual job tasks used in testing applicants' performance.

Work sampling technique

A testing method based on measuring performance on actual
basic job tasks.
Management assessment centers
A situation in which management candidates are asked to make
decisions in hypothetical situations and are scored on their
performance. It is also involves testing and the use of
management games.

- 94 -
6-Interviewing candidates

Nondirective interview
An unstructured conversational- style interview. The interviewer
pursues points of interests as they come up in response to
questions.

Directive interview
An interview following a set sequence of questions.

Stress interview
An interview in which the applicant is made uncomfortable by a
series of often rude questions. This technique helps identify
hypersensitive applicants and those with low or high stress
tolerance.

Appraisal interview:
A discussion following a performance appraisal in which supervisor
and employee discuss the employee's rating and possible remedial
actions.

Situational interview
A series of job-related questions which focuses on relevant past
job-related behaviors.

Serialized interview
An interview in which the applicant is interviewed sequentially by
several persons and each rates the applicant on a standard form.

Panel interview
An interview in which a group of interviewers question the
applicant.

Candidate- order error

- 95 -
An error of judgment on the part of the interviewer due to
interviewing one or more very good or very bad candidates just
before the interview in question.

7- Orienting and training

Employee orientation
A procedure for providing new employee with basic background
information about the firm.

Reality shock
That state which results from the discrepancy between what the
new employees expected from his/her new job, and the realities
of it.

Training
The process of teaching new employees the basics skills they
need to perform their jobs.

Task analysis
A detailed study of a job to identify the skills required so that
an appropriate training program may be instituted.

Performance analysis
Verifying that there is a performance deficiency and determining
whether that deficiency should be rectified through training or
through some other means (such as transferring the employee)

On-the-job training (OJT)

Training a person to learn a job while working at it.

Job instruction training (JIT)

Listing of each job's basic tasks, along with key points in order
to provide step-by-step training for employees.

- 96 -
Programmed learning
A systematic method for teaching job skills involving presenting
questions or facts, allowing the person to respond, and giving the
learner immediate feedback on the accuracy of his/ her answers.

Vestibule or simulated training

Training employees on special off-the-job equipment, as in
airplane pilot training, whereby training costs & hazards can be
reduced.

Worker involvement programs

Programs that aim to boost organizational effectiveness by

getting employees to participate in planning, organizing, and
managing their jobs.

Controlled experimentation
Formal method of testing the effectiveness of a training
program, preferably with before-and-after tests and a control
group.

- 97 -
8- Developing Managers

Management development
Any attempt to improve current or future management
performance by imparting knowledge, changing attitudes, or
increasing skills.

Succession planning
A process through which senior-level openings are planned for &
eventually filled.

Job rotation
A management training technique that involves moving a trainee
from department to department to broaden his/her experience
and identify strong & weak points.

Junior board

A method of providing middle – management trainees with

experience inn analyzing company problems by inviting them to
set on a junior board of directors &and make recommendations
on overall company policies.

Action learning
A training technique by which management trainees are allowed
to work fulltime analyzing and solving problems in other
departments.

Case study method

A development method in which the manager is presented with a
written description of an organizational problem to diagnose and
solve.

Management game
A development technique in which teams of managers compete
with one anther by making computerized decision regarding
realistic but simulated companies.
- 98 -
Role playing
A training technique in which trainees act out the parts of
people in realistic management situation.

Behavior modeling

A training technique in which trainees are first shown good

management techniques in film, are then asked to play roles in a
simulated situation, and then given feedback and praise by their
supervisor.

In-house development centers

A company-based method exposing prospective managers to
realistic exercises to develop improved management skills.

Organizational development (OD)

A method aimed at changing the attitudes, values, and beliefs,
of employees so that employees can improve the organization.

Survey feedback
A method that involves surveying employees' attitude and
providing feedback to department managers so that problems
can be solved by the managers and employees.

Sensitivity training
A method for increasing employees' insights into their own
behavior by candid discussions in groups led by special trainers.

Team building

Improving the effectiveness of teams such as corporate officers

and divisions directors through use of consultants, interviews,
and team-building meetings.

Managerial grid
- 99 -
 A matrix that represents different possible leadership styles.

"9.9" managers
A manager with this rating is highly concerned with people and
with production.

9- Managing quality & productivity

Flextime
A plan whereby employees build their workday around a core of
midday hours.

Four-day workweek
An arrangement that allows employees to work four ten-hour days
instead of the more usual five eight- hour days.

Job sharing
A concept that allows two or more people to share a single full-time
job.

Telecommuting
A work arrangement in which employees work at remote locations,
usually at home, using video displays, computers, and other
telecommunications equipment to carry out their responsibilities.

Flex years
A work arrangement under which employees can choose (at six-month
intervals) the number of hours they want to work each month over the
next year.

Quality circle
A group of five to ten specially trained employees who meet on a
regular basis to identify and solve problems in their work area.

- 100 -
 Self-directed teams
Highly trained work groups that use consensus decision making & broad
authority to self-direct their activities.

10- Appraising performance.

Graphic rating scale
A scale that lists a number of traits and a range of performance for
each. The employee is then rated by identifying the score that best
describes his/her level of performance for each trait.

Alternation ranking method

Ranking employees from best to worst on a particular trait.

Paired comparison method

Ranking employees by making a chart of all possible pairs of employees
for each trait and indicating which the better employee of the pair is.

Forced distribution method.

Similar to grading on a curve; predetermined percentages of rates are
placed in various performance categories.

Critical incident method.

Keeping a record of uncommonly good or undesirable examples of an
employee's work-related behavior and reviewing it with the employee
at predetermined times.

Behaviorally anchored rating scale (BARS)

An appraisal method that aims at combining the benefits of

narrative critical incidents and quantified ratings by anchoring a
quantified scale with specific narrative examples of good poor and
performance.

Management by objectives. (MBO)

- 101 -
Involves setting specific measurable goals with each employee and
then periodically reviewing progress made.

Unclear performance standards.

An appraisal scale that is too open to interpretation; instead include
descriptive phrases that define each trait and what is meant by
standards like "good" or "unsatisfactory".

Halo effect
In performance appraisal the problem that occurs when a supervisor"
s rating of a subordinate on one trait biases the rating of that person
on other traits.

Central tendency
A tendency to rate all employees the same way such as rating them
all average.

Strictness/leniency
The problem that occurs when a supervisor has a tendency to rate all
subordinates either high or low.

Bias
The tendency to allow individual differences such as race, age, and
sex to affect the appraisal rates theses receive.

Appraisal interview
An interview in which the supervisor and subordinate review the
appraisal and makes plans to remedy deficiencies and reinforce
strengths.

- 102 -
- 103 -
 11- Managing careers

Managing careers
Career planning & development the deliberate process through which a
person becomes aware of personal career-related attributes and the
lifelong series of stages that contribute to his/her career fulfillment.

Career cycle
The stages through which a person career evolves.

Growth stage
The period from birth to age 14 during the person develops a self-
concept by identifying with and interacting with other people such as
family, friends, and teachers.

Exploration stage.
The period from birth to ages 15-24 during which a person seriously
explores various occupational alternatives, attempting to match these
alternatives with her/her interests and abilities.

Establishment stage
The period, roughly from ages 24 to 44, that is the heart of most
people's work life.

Trial sub stage

The period from about age 25 to 30 during which the person
determining whether or not the chosen field is suitable and if it is not
attempts to change it.

Stabilization sub stage

The period, roughly from age 30 to 40, during which firm occupational
goals are set and more explicit career planning is made to determine
the sequence for accomplishing these goals.

Midcareer crisis sub stage

- 104 -
The period occurring between mid-thirties and mid-forties during
which often make major reassessment of their progress relative to
their original career ambitions and goals.

Maintenance stage
The period from about ages 45 to 65 during which the person secures
his/her place in the world of work.

Decline stage
The period during which many people are faced with the prospect of
having to accept reduced levels of power and responsibility.

Occupational orientation
The theory developed by John Holland that says there are six basic
personal orientations that determine the sorts of careers to which
people are drawn.
Occupational skills
The skills needed to be successful in particular occupation. According
to the Dictionary of Occupational Titles., occupational skills break
down into three groups depending on whether they emphasize data,
people, or things.
Aptitudes
Innate abilities which include intelligence, numerical aptitude,
mechanical, comprehension, and manual dexterity, as well as talents
such as artistic, theatrical, or musical ability that plays an important
role in career decisions.

Career anchors
A concern or value that you will not give up if a choice has to be
made.

Reality shocks.
Results of a period that may occur at the initial career entry when
the new employee's high job expectations confront the reality of
boring, unchallenging job.

- 105 -
 12-Establishing pay plans

Employee compensation
All forms of pay or rewards going to employees and arising from their
employment.

Davis-Bacon Act
A law passed in 1931 that sets wage rates for laborers employed by
contractors working for the federal government.

Walesh- Healy Public Contract Act.

A law enacted in 1936 that requires minimum-wage and working
conditions for employees working on any government contract
amounting to more than$ 10.000.

Fair Labor Standard Act

Congress passed this act in 1936 to provide for minimum wages,
maximum hours, overtime pay, and child labor protection. The law has
been amended many times and covers most employees.

Equal Pay Act of 1963

An amendment to the Fair labor Standards Act designed to require
equal pay for women doing the same work as men.

Civil Rights Act

This law makes it illegal to discriminate in employment because of
race, color, religion, sex, or national origin.

Employee Retirement Income Security Act

(ERISA)
The law that provides government protection of pensions for all
employees with company pension plans. It also regulates vesting rights
(employees who leave before retirement may claim compensation from
the pension plan).

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 Salary survey
A survey aimed at determining prevailing wage rates. A good salary
survey provides specific wage rate for specific jobs. Formal written
questionnaire surveys are the most comprehensive, but telephone
surveys and newspaper ads are also source of information.

Benchmark job
A job that is used to anchor the employer's pay scale and around
which other jobs are arranged in order of relative worth.

Job evaluation
A systematic comparison done in order to determine the worth of one
job relative to anther.

Compensable factor
A fundamental, compensable element of a job, such as skills, effort,
responsibility, and working conditions.

Ranking method
The simple method of job evaluation that involves ranking each job
relative to all other jobs usually based on overall difficulty.

Classification (or grading) method

A method for categorizing jobs into groups.

Classes
Dividing jobs into classes based on set of rules for each class, such
as amount of independent judgments, skill, physical effort, and so
forth, required for each class of jobs. Classes usually contain similar
jobs such all secretaries.

Grades
A job classification system synonymous with class, although grades
often contain dissimilar jobs, such as secretaries, mechanics, and
fight fighters. Grade descriptions are written based on compensable

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factors listed in classification systems, such as the federal
classification system.

Grade Description
Written description of the level of say, responsibility and knowledge
required by jobs in each grade. Similar jobs can then be combined
into grades or classes.

Point method
The job evaluation method in which a number of compensable factors
are identified and then the degree to which each of these factors is
present in the job is determined

Factor comparison method

A widely used method of ranking jobs according to a variety of skill
and difficulty factors, then adding up these ranking to arrive at an
overall numerical rating for each given job.

Pay grade
A pay grade is comprised of jobs of approximately equal difficulty.
Wage curve
Shows the relationship between the value of the job and the average
wage paid for this job.

Rate ranges
A series of steps or levels within a pay grade usually based upon
years of service.

Comparable worth
The concept by which women who are usually paid less than men can
claim that men in comparable rather than strictly equal jobs are paid
more.

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 13-pay- for-performance and Financial Incentives

Fair day's work

Fredrick Taylor's observation that haphazard setting of piece work
requirement & wages by supervisors was not sufficient, and that
careful study was needed to define acceptable production quota for
each job.
Scientific management
The careful, scientific study of the job for the purpose of posting
productivity and job satisfaction.

Spot bonus
A spontaneous incentive awarded to individuals for accomplishment not
readily measured by standard.
Variable pay
Any plan that ties pay to productivity or profitability, usually as one-
time lump payments.

Piecework
A system of pay based on the number of items processed by each
individual worker in a unit of time, .such as items per hour or items
per day .

Straight piecework plan

Under this pay system each worker receives a set payment for each
piece produced or processed in a factory or shop.

Guaranteed piecework plan

The minimum hourly wage plus an incentive for each piece produced
above a set number of pieces per hour.

Standard hour plan

A plan by which a worker is paid by basic hourly rate but is paid an
extra percentage of his/her base rates for production exceeding the
standard per hour or per day. Similar to piecework payment but based
on a percent premium.

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 Team or group incentive plan
A plan in which a production standard is set for a specific work group,
and its members are paid incentives if the group exceeds the
production standard.

Annual bonus
Plans that are designed to motivate short-term performance of
managers and are tied to company profitability.

Capital accumulation programs

Long-term incentives most often reserved for senior executives. Six
popular plans include stock options, stock appreciations rights,
performance achievement plans, phantom stock plans, and book value
plans.

Stock options
The right to purchase a stated number of shares of company stock at
today's price at some time in the future.

Merit pay (merit raise)

Any salary increase awarded to an employee based on his/her
individual performance.
Profit-sharing plan
A plan whereby most employees share in the company's profits

Employee stock ownership plan (ESOP)

A corporation contributes shares of its own stock to trust in which
additional contributions are made annually. The trust distributes the
stock to employees on retirement or separation from service.

Scanlon plan
An incentive plan developed in 1937 by Joseph Scanlon and designed
to encourage cooperation, involvement, and sharing of benefits.
Gain sharing plan
An incentive plan that engages employees in a common effort to
achieve productivity objectives.
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 Variable compensation
Financial rewards paid as one-time awards that do not permanently
increase fixed payroll costs.

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 14- Benefits and services.

Benefits
Indirect financial payments given to employees. They may include
health and life insurance, vacation, pension, education, plans, and
discounts on company products, for instance.

Supplemental pay benefits.

Benefits for time not worked such as unemployment insurance,
vacation and holiday pay, and sick pay

Unemployment insurance.
Provides weekly benefits if a person is unable to work through some
fault other than his/her own.

Sick leave
Provides pay to an employee when he/she is out of work because of
illness.

Severance pay
A one-time payment some employers provide when terminating an
employee.

Supplemental unemployment benefits

Provide for a "guaranteed annual income" in certain industries where
employers must shut down to change machinery or reduced work.
These benefits are paid by the company and supplement unemployment
benefits.

Worker's compensation

Provides income and medical benefits to work-related accident victims

on their dependents regardless of fault.

Group life insurance

Provides lower rates for the employer or employee and including all
employees regardless of health or physical condition.
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 Health Maintenance organization (HMO)
A prepaid health care system that generally provides routine round-
the-clock medical services as well as preventive medicine in a clinic-
type arrangement for employees, who pay a nominal fee in addition to
the fixed annual fee the employer, pays.

Preferred Provider Organizations (PPOs)

Groups of health care providers that contract with employers,
insurance companies, or third party payers to provide medical care
services at a reduced fee.

Pregnancy Discrimination Act (PDA)

An amendment to the Title VII of the Civil Right Act that prohibits
sex discrimination based on " pregnancy, childbirth, or related medical
conditions" it requires employers to provide benefits-including sick
leave & disability benefits and health and medical insurance – the
same as for any employee not able to work because of disability.

Social Security
Provides three types of benefits: retirement income at the age of 62
and thereafter; survivor's or death benefits payable to the
employee's dependents regardless of age at time of death; and
disability benefits payable to disabled employees and their
dependents. These benefits are payable only if the employee insured
under the Social E\Security Act.

Pension plans
Plans that provides a fixed sum when employees reach a
predetermined retirement age or when they can no longer work due to
disability.

Defined benefit pension plan.

A plan that contains formula for determining retirement benefits

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 Defined contribution plan
A plan in which the employer's contribution to employees' retirement
or savings funds is specified.

Deferred profit-sharing plan

A plan in which a certain amount of profits is credited to each
employee's account, payable at retirement, termination, or death.

Vesting
Provision that money placed in a pension fund cannot be forfeited for
any reason.

Employee Retirement Income Security Act

(ERISA)
Signed into law by President Ford in1974 to require that pension
rights be vested, and protected by a government agency, PBGC.
Pension Benefits Guarantee Corporation (PBGC)
Established under ERISA to ensure that pensions meet vesting
obligations; also insures pension should a plan terminate without
sufficient funds to meet its vested obligations.

Golden Offerings
Offers to current employees aimed at encouraging them to retire
early, perhaps even with the same pension they would expect if they
retired at; say, age65.

Early retirement window

A type of golden offering by which employees are encouraged to
retire early, the incentive being liberal pension benefits plus perhaps
a cash payment.

Employee Assistance Program (EAP)

A formal employer program for providing employees with counseling
and/or treatment programs for problems such as alcoholism, gambling,
or stress.

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 Flexible benefits program.
Individualized plans allowed by employers to accommodate employee
preferences for benefits.

15-labor Relations and collective Bargaining

Closed shop
A form of union security in which the company can hire only union
members. This was outlawed in 1947 but still exists in some industries
(such as printing).

Union shop
A form of union security in which the company can hire nonunion
people but they must join the union after a prescribed period of time
and pay dues. (If they do not, they can be fired)

Agency shop
A form of union security in which employees that do not belong to the
union must still pay union dues on the assumption that union efforts
benefit all workers.

Open shop
Perhaps the least attractive type of union security from the union's
point of view, the workers decide whether or not join the union; and
those who join must pay dues.

Norris-LaGuardia Act
This law marked the beginning of the era of strong encouragement of
unions and guaranteed to each employee the right to bargain
collectively "free from interference, restraint, or coercion"

National labor Relations Board (NLRB)

The agency created by the Wagner Act to investigate unfair labor
practice charges and to provide for secret-ballot elections and

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majority rule in determining whether or not a firm's employees want a
union.

National Labor Relations (or Wagner Act)

This law banned certain types of unfair labor practices and provided
for secret-ballot elections and majority rule for determining whether
or not a firm's employees want to
Unionize.

Taft-Hartley Act
Also known as the labor Management Relations Act, this law
prohibited union unfair labor practices and enumerated the rights of
the employees as union members. It also enumerated the rights of
employers.

National emergency strikes

Strikes that might "imperil the national health and safety."

Landrum-Griffin Act
The law aimed at protecting union members from possible wrongdoing
on the part of their union.

Authorization cards
In order to petition for a union election, the union must show that at
least 30% of employees may be interested in being unionized.
Employees indicate this interest by signing authorization cards.

Bargaining unit
The group of employees the union will be authorized to represent.
Collective bargaining
The process through which representatives of management and the
union meet to negotiate a labor agreement.

Good faith bargaining

A term that means both parties are communicating and negotiating
and that proposal are being matched with both parties making every
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reasonable effort to arrive at agreements. It does not mean that
either party is compelled to agree to a proposal.

Voluntary bargaining items

Items in collective bargaining over which bargaining is neither illegal
nor mandatory –neither party can be compelled against its wishes to
negotiate over those items.

Illegal bargaining items.

Items in collective bargaining that are forbidden by law; for example,
the clause agreeing to hire " union members exclusively" would be
illegal in a right-to-work-state.

Mandatory bargaining items

Items in collective bargaining that a party must bargain over if they
are introduced by other party- for example, pay.
Mediation
Intervention in which a neutral third party tries to assist the
principals in reaching agreement.

Arbitration
The most definitive type of third-party intervention, in which the
arbitrator usually has the power to determine and dictate the
settlement terms.

Wildcat strike
An unauthorized strike occurring during the term of a contract.

Sympathy strike
A strike that takes place when one union strikes in support of the
strike of another.

Boycott
The combined refusal by employees and other interested parties to
buy or use the employer's products.

Lockout
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A refusal by the employer to provide opportunities to work.

Grievance
Any factor involving wages, hours, or conditions of employment that is
used as a complaint against the employer.

16-Guaranteed fair treatment

Speak up! Programs

Communications programs that allow employees to register questions,
concern, and complaints about work-related matters.

Opinion surveys
Communication devices that use questionnaires to regularly ask
employees their opinions about the company, management, and work
life.

Top-down programs
Communications activities including in-house television centers,
frequent roundtable discussions and in-house newsletters that provide
continuing opportunities for the firm to let all employees be up-dated
on important matters regarding the firm.

Guaranteed fair treatment.

Employer programs that are aimed at ensuring that all employees are
treated fairly, generally by providing formalized, well documented,
and highly publicized vehicles through which employees can appeal any
eligible issues.

Open-door program
IBM's fair treatment program, which gives every IBM employee the
right to appeal this actions of his/her supervisor by taking the
concern successively higher level of management.

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 Discipline
A procedure that corrects or punishes a subordinate because a rule or
procedure has been violated.

Dismissal
Involuntary termination of an employee's employment with the firm

Insubordination
Willful disregard or disobedience of the boss's authority or legitimate
orders; criticizing the boss in public.

Termination at will
The idea, based in law that the employment relationship can be
terminated at will by either the employer or the employee for any
reason.

Wrongful discharge
An employee dismissal that does not comply with the law or does not
comply with the contractual agreement stated or implied by the firm
via its employment application forms, employee manuals, or other
promises.

Termination interview
The interview in which an employee is informed of the fact that s/he
has been dismissed.

Outplacement counseling
A systematic process by which a terminated person is trained and
counseled in the techniques of self-appraisal and securing a new
position.

Plant closing law

The worker Adjustment and Retraining Notification Act. Which
requires notification employees in the event an employer decides to
close its facility?

Layoff
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A situation in which there is a temporary shortage of work and
employees are told that there is no work for them but that
management intends to recall them when work is again available.

Bumping/layoff procedures
Detailed procedures that determine who will be laid off if no work is
available; generally allow employees to use their seniority to remain on
the job.

Voluntary reduction in pay plan

An alternative to layoffs in which all employees agree to reductions in
pay to keep every one working.
Voluntary time off
An alternative to layoffs in which some employees agree to take time
off to reduce the employer's pay roll and avoid the need for a layoff.

Rings of defense
An alternative layoff plan in which temporary supplemental employees
are hired with the understanding that may be laid off at any time.

Downsizing
Refers to the process of reducing, usually dramatically the number of
people employed by the firm.

Lifetime employment without guarantees

Refers to a commitment on the part of firms like Toyota and Saturn
to do all that reasonably possible to avoid layoffs and non-
performance- based dismissals while recognizing that ultimately the
employment relationship must be at will.

Retirement
The point at which at which a person gives up one's work usually
between the ages of 60 to 65 ,but increasingly earlier today due to
firm 'early retirement incentive plans.

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 Preretirement counseling
Counseling provided to employees who are about to retire, which
covers matters such as benefits advice, second career, and so on.

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 17-Employee safety and Health

Occupational Safety and Health Act

The law passed by Congress in 1970 "to assure so far possible every
working man and woman in the nation safe and healthful working
conditions and to preserve our human resources"

Occupational Safety and Health Administration

(OSHA)
The agency created within the department of Labor to set safety and
health standards for almost all workers in the United States.

Citations
Summons informing employers and employees of the regulations and
standards that have been violated in the workplace.

Unsafe conditions
The mechanical and physical conditions that cause accidents.

Unsafe acts
Behavior tendencies and undesirable attitudes that cause accidents.

Burnout
The total depletion of physical and mental resources caused by
excessive striving to reach an unrealistic work-related goal.

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 REFERENCES

1-MANAGEMENT
KATHRYN M.BARTOL& DAVID C.MARTIN

2-HUMAN RESOURCE MANAGEMENT

GARY DESSLER

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