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Posted on May 1, 1996July 10, 2018

Policy Matters

Electronic mail has changed the workplace in more ways than almost anyone could have imagined just a decade ago. Today, information is zapped from one computer terminal to another instantaneously—creating a digital trail of conversations, thoughts and ideas. As with any technological revolution, society’s ability to adapt to this new tool has lagged. Although 80% of all organizations communicate and share business information via e-mail, only 36% have policies addressing proper e-mail usage. More disturbing is the fact that only 34% have written workplace privacy policies. That’s the finding of a recently released survey conducted by the Society for Human Resource Management (SHRM).


“Many organizations are unsure how to address privacy and technology concerns without interfering with the tremendous benefits of a tool such as e-mail—increased efficiency, teamwork and flexibility,” says Michael R. Losey, president of SHRM. But this laissez-faire approach can land an organization in serious trouble. In many cases, workers are confused about what is acceptable behavior and what isn’t, as well as what their boss considers acceptable for requesting information and carrying on business. Is informal networking with an associate through e-mail deemed personal or professional? Is an occasional message to a friend or family member verboten?


“While employers believe they have the right to access e-mail messages, employees tend to believe their communications are private,” writes Jeffrey A. Van Doren, a Pittsburgh-based labor and employment law attorney in a recent issue of HR News. “Implementing an e-mail policy can go a long way toward clarifying who legally owns and has the right to access and review e-mail system messages in the workplace.” Indeed, a growing number of employees who feel their rights have been violated are taking such cases to court. And although the overwhelming majority of decisions have come down in favor of the company, the cost of defending such actions can be expensive, he asserts.


That’s why DHL Systems, a Burlingame, California-based technology service company that’s part of DHL Worldwide Express, decided to formulate a policy nearly one year ago. “We felt it was important that everyone knows exactly what the rules are. The idea was to be upfront and honest about what behavior is acceptable and what isn’t,” says Linda Giusti, human resources manager for the company. So, she and the firm’s HR director and legal counsel, Margaret Phillips, began scanning articles, case law, legal memos and other companies’ policies to glean ideas and ensure they weren’t missing anything.


After several weeks of research, they created a draft policy. Then they asked staffers for feedback and additional ideas on creating a policy that would be realistic and fair. “That was a crucial step,” says Phillips. “Having everyone’s comments up front meant we could act proactively rather than reactively. It helped us deal with issues before they became problems.” At the same time, the company had internal experts in HR, finance, legal and technology review the document to ensure it was accurate and would work. The final result? A single-page document that concisely spells out the organization’s policies governing e-mail and online access—a policy that borrowed on other companies’ experience but meshed with DHL Systems’ own culture.


DHL Systems is an example of how a company can generate a policy so that everyone wins. It spells out that the company’s e-mail isn’t to be used for “communications of a discriminatory or harassing nature, or for obscene” messages or chain letters. It notes that occasional nonbusiness use is acceptable, but “employees may not abuse the privilege for any significant amount of personal business or pleasure.” And it clearly states that information created on company computers is generally considered private, although the company reserves the right to review electronic files and messages “to ensure that these media are being used in compliance with the law and with company policy.” Other parts of the document cover hacking into other employee’s files and protecting confidential information when sending e-mail to outsiders or posting it online.


That’s a good start. But as Don Harris, manager of HR systems for the New York Times Co. and chair of the International Human Resources Information Management Association puts it: “Companies get into problems not only because of a lack of policy, but also due to poor policy implementation. It’s crucial to follow the guidelines.” His committee is working to develop a set of professional guidelines for the use and protection of HR information in computers and other forms of electronic media. But, “ultimately, it’s people who protect information, not policies. That’s why people must understand policies and take responsibility for them,” he says.


Amid all the discussion about respecting employees rights, it’s important to remember that e-mail and other forms of online communication can pose a serious security risk. Even ardent privacy advocates agree that electronic communication provides an easy way for a disgruntled worker to zap information to himself or a friend outside of the company. The bottom line? “It’s important to strike a balance. If you suspect there’s a problem, it’s a good idea to monitor an employee. But randomly monitoring e-mail just to see what’s going on can lead to enormous problems,” says Laura Pincus, director of the Institute for Business and Professional Ethics at DePaul University.


Personnel Journal, May 1996, Vol. 75, No. 5, p. 78.


Posted on May 1, 1996July 10, 2018

Client_server Seven Facts and Myths You Need To Know

Less expensive? Software driven? Separate fact from fiction.


1. Client/server is less expensive to operate than a mainframe.
Probably not. Some companies are able to save money with a client/server system, but don’t bet on it. Although hardware costs are sometimes lower, software, troubleshooting and training often make client/server architecture 20% to 30% more expensive in actual technology costs. However, client/server can generate enormous long-term gains in productivity and revenue.


2. The client/server environment is easier to use for the end user.
True. A graphical user interface such as Windows combined with user-friendly software eliminates arcane codes and highly structured work patterns tied to mainframes. It’s important to choose well-integrated software solutions, however. An added bonus: training costs should drop over time as employees learn to use the system.


3. Reengineering is an automatic outcome of client/server architecture.
False. Client/server provides many of the basic tools for redesigning work and business processes, but it doesn’t happen automatically. Most companies find that teams or committees must study the technology and internal processes to find new ways to get work done more efficiently.


4. Application software drives a client/server system.
False. There’s no question that software is a key component, but client/server is an incredibly complex mix of technologies. Not only must the network be configured efficiently, it’s crucial to have solid servers, PCs optimized for the environment, a highly compatible relational database and solid applications running on the desktop. Bottom line? “Processes must be aligned with the infrastructure,” says James Greene, a market strategy consultant at Summit Strategy Inc. in Newbury, Massachusetts.


5. It’s important to make client/server decisions based on the needs of the enterprise.
True. It’s easy and tempting to service the squeaky wheel of an individual fiefdom or LAN. Fact is, it’s nearly impossible to negotiate companywide standards on a case-by-case basis, explains Sidney Diamond, a Stevenson, Maryland-based consultant. Likewise, it’s crucial to control computing platforms, operating systems, software and training. It’s certainly possible to mix and match components, but it must fit into an overall plan. Think long term.


6. Human resources is at the vanguard of the client/server movement.
True. Because of the transactional nature of many HR tasks, human resources can benefit greatly from the technology. And, make no mistake, HR is among the first to adopt many client/server applications, including scanning, imaging, interactive voice response, kiosks and workflow technology.


7. Peer-to-peer networking spells death for client/server.
True. Well, someday anyway. But then, the universe may eventually end, too. Client/server will be around for years, although it’s just beginning to evolve into a mature computing environment and may, or may not, be applied to HR computing needs. So called peer-to-peer networking—which spreads processing power and data throughout the organization over many PCs—has advantages in certain businesses and industries, but also presents many problems and is still experimental.


Personnel Journal, May 1996, Vol. 75, No. 5, p. 95.


Posted on May 1, 1996July 10, 2018

Safeguarding Privacy

Many breaches in privacy and confidentiality occur because companies haven’t established adequate security measures or they’re simply careless. A formal policy that outlines practices and expectations is a good start, but according to experts, such as Claudia Terrazas, an attorney at the Privacy Right Clearinghouse at the University of California, San Diego’s Center for Public Interest Law, “It’s important to think through all sorts of situations and realize how easy it is for information to leak out.”


One of the most common ways highly confidential information winds up in the wrong hands is that key documents aren’t shredded when they’re thrown away. Attorneys, insurance companies and others routinely hire “dumpster divers” to sift through mountains of paperwork and find key documents about employees whose cases they’re involved with. Thieves also comb through trash to find Social Security numbers and financial records that can be used to fraudulently obtain credit cards and loans in someone else’s name. And it isn’t just paper-based documents that are a threat. Diskettes, data storage tapes and other forms of magnetic and optical media are just as big a threat. In many instances, it’s necessary to completely demagnetize or reformat a disk to expunge the data.


Faxes, telephones and voicemail also pose a threat. If the recipient doesn’t have private access to messages, it’s possible that others will see or hear them. The Privacy Rights Clearinghouse suggests that anyone sending sensitive data determine if it’s acceptable to leave a message on a person’s answering machine or fax, verify the accuracy of the phone number and then check transmission reports—or better yet check with the recipient—to ensure the information was received. Cellular and cordless telephones require extra care because anyone with a radio scanner can listen in.


Record keeping is another troublesome area. Two-thirds of all companies use Social Security numbers to identify employees. All too often, the number is also displayed on time cards, parking permits, employee rosters and even mailing labels. But, “Social Security numbers are extremely sensitive, because they can be used for financial fraud and other invasions of privacy,” says Don Harris, manager of HR Systems for the New York Times Co. and chair of the International Human Resources Information Management Association.


Harris also points out that employees sometimes pass out private information unwittingly. “If there’s an illness or a holiday card list, home addresses and phone numbers may be circulated without checking with the individuals involved. The intent is positive, but someone might perceive it as an invasion of his or her privacy. There’s also the possibility that someone outside the organization could get their hands on the information. In many cases, if someone perceives it’s an invasion of privacy then their privacy has been invaded.”


Personnel Journal, May 1996, Vol. 75, No. 5, p. 83.


Posted on May 1, 1996July 10, 2018

Automation Fits Famous Footwear

One of the great challenges for human resources departments in large, decentralized corporations is finding ways to help managers at remote locations improve their employees’ productivity. In the case of Madison, Wisconsin-based Famous Footwear, productivity means selling shoes—a heckuva lot of shoes! To meet that goal, the company innovated automated HR functions to improve productivity and ensure its managers’ operational consistency in 1992.


Famous Footwear’s transition occurred in the midst of an aggressive national expansion. Four years ago, it had 400 stores with annual sales of approximately $300 million. By the end of 1995, the company had grown to 800 stores in 44 states with annual sales of $733 million. To put this accomplishment in perspective, during a time when many retailers have had flat or declining sales, Famous Footwear opened an average of one new store every three days for three years in a row.


High standards apply to employees and footwear.
The company’s remarkable growth has been achieved by following a two-fold strategy. First, it focuses on delivering high-quality products at affordable prices to its target market (or as the company slogan says, “brandname shoes for less for the entire family”).


Equally critical, Famous Footwear’s management places a premium on hiring, training and retaining a success-oriented, highly motivated workforce. Earl B. Fischer, vice president of information services says, “By filling jobs with the right people at the right time and ensuring the work schedule for every shift is complete, we effectively increase the volume of shoe sales per hour and per transaction.”


With only 15 human resources professionals (14 of whom are located in the home office) to serve more than 8,500 employees scattered throughout 44 states, the HR department continually looks for ways to improve efficiencies. A major part of its success can be attributed to the department’s decision to automate the flow of information and services throughout the enterprise.


The automation strategy began to take shape when Famous Footwear’s information services (IS) group installed in each store NCR 7057 PCs that tied into an IBM AS/400 in the home office. This computer network enabled field offices to have immediate access to updated information in the home office. As the benefits of using technology to automate inventory management at the point of sale reverberated throughout the company, the HR staff recognized the corporate advantages that could be achieved by automating a variety of HR functions.


The HR automation effort was tied to Famous Footwear’s business objectives from the start. “Our primary criterion for choosing HR software,” says Jan Hardyman, director of employee relations and benefits, “was to make a significant impact on the business.” After extensive evaluation of multiple automation approaches, HR management chose a suite of HR and communications application software products developed by Park City Group in Park City, Utah. Components of the ActionManager family of business operations automation solutions implemented by Famous Footwear included Interactive Tutor, a computer-based training tool; CheckUp, which automates skills appraisal by making it possible to measure employee proficiency with interval testing; ReadyReference, an online reference that provides easy access to corporate policy and procedure bases; ActionMail, electronic mail software designed to map organizational infrastructure; ActionForm, which supports electronic forms and streamlines such paper-based processes as pay changes and employee reviews; and SmartHire, a smart-screening tool for the initial interview process.


“Automation helps in terms of consistency of message. It helps when 800 stores are doing the same things in the same way in the same time frame,” says Hardyman.


Skills assessment aids training.
People who are the best at what they do sometimes appear to accomplish great things with little sign of effort; however, appearances can be deceiving. For example, when you see basketball superstar Michael Jordan leap from the baseline and glide above his fellow players to stuff the ball in a resounding “dunk,” you don’t see the thousands of hours he spent practicing his craft as a child in North Carolina. One of the key ways in which Famous Footwear is leveraging information technology is by creating a training and skills assessment course behind the scenes that will train its sales associates to be stars on the court.


To meet the unique needs of sales managers and sales associates scattered across the country, the HR department developed a training program that profits from a strategic mix of computer-based training, instructional videos and traditional one-on-one methods. The training schedule is arranged so each new employee uses the Interactive Tutor training module before going out onto the floor for personal sales training.


Famous Footwear also uses a training program for new assistant managers. “We have a 2+2 rule whereby after the training has taken place, we give the associates two weeks to assimilate that knowledge and be able to apply it on the job,” says Jones. “At that point, they take a computer-based skill assessment. If the skill assessment points to a problem area, we give the trainees another two weeks to become more capable at performing the skill.”


At that point, the store manager administers a demonstrated skill feedback test to make sure the assistant manager can answer specific job-related questions and actually can perform the desired tasks while being observed. The goal is to ensure a manager can say, without any qualification, that the person whose skills are being evaluated can perform all the required tasks according to the company’s expectations.


Automated systems speed the paperwork trail.
Some of the greatest gains in HR efficiency have come from software tools that operate company-wide as opposed to those designed specifically for the HR area. Combining the electronic forms application with the e-mail system, for example, dramatically decreased paperwork.


“With the old system, it would take from three days to a week to get new-hire paperwork in the mail from a state such as South Carolina to the home office in Wisconsin,” says Hardyman. “Then payroll would key in data such as name, social security number and deductions, and a few days later the paper package would arrive in human resources. We would pull out the benefits section, add pertinent information and then pass the package along. We have moved to a much more efficient process.


A key way Famous Footware is leveraging information technology is by creating a training and skills assesment course to train its sales associates to be stars in the court.


“With ActionForm and ActionMail, we usually can access new-hire information on the same day paperwork is filled out. This saves paying the cost of an overnight service or waiting the time it takes for a package to come by regular mail.”


Hardyman adds, “The system now is set up to operate by what we call management by exception whereby the only new-hire paperwork we look at is for people who don’t complete the initial benefits paperwork application. We receive a one-page exception report every Wednesday that lists the outstanding benefit forms needed.”


Famous Footwear has implemented the multi-module ActionManager system over a four-year schedule. The final component, Smart Hire, has been in testing and is scheduled to be operational in all stores by June.


“It provides the interviewer with probe questions so that if the applicant answers a question differently from the response the company is looking for, it provides questions for the manager to ask which will probe the possible reasons for the response,” says Jones.


Clearly, Jones is excited about the positive impact automation has had on the multiple HR processes at Famous Footwear. However, she cautions others not to look at automation as the panacea to cure all their problems. “You must have reasonable expectations as to what the software will do for you,” says Jones. “Even with a highly automated HR system such as ours, some of the problems you have in areas such as compliance aren’t going to disappear completely.”


Personnel Journal, May 1996, Vol. 75, No. 5, pp. 132-133.


Posted on May 1, 1996July 10, 2018

Helping Dad Have More Time at Home

The Dilemma:
Ted’s youngest child recently developed a health problem that requires a great deal of home care. Ted and his wife both work full-time jobs and they can’t afford to give up either of their incomes. So, Ted’s idea is to reduce his work-week to 30 hours. He’s willing to tele-commute a few additional hours, but is concerned that his workload, without adjustment, will swallow up 60 hours a week as usual. The challenge? Ted is a well-respected and well-liked supervisor of seven full-time employees. The trouble is you’re worried he may be setting a dangerous precedent. Telecommuting has been a popular option, but never job-sharing or working part time. Should you find a way to work with Ted and create a schedule you both can live with? Or should you let Ted know that his job requirements can’t change based on the demands of his personal life?


Readers Respond:
We would first hand Ted a copy of our FMLA form and notice with information on the Family Medical Leave Act of 1993. We would ask Ted if he felt that he would qualify under the criteria and if he could produce documentation from a physician regarding the serious health condition of his child. If Ted met the established criteria, we would have no problem approving a leave and arranging a reduced work schedule until he had utilized his prorated 12-week period as provided by the FMLA. We would then suggest reviewing the situation if necessary after the exhaustion of the FMLA leave.


Regarding the exemption for the highest paid 10% employees—our company policy is to extend the benefits of the FMLA to all employees.
Robin Bartanen, Benefits Manager
& Naomi Richards, Employee Rels. Rep., Marquette General Hospital Inc. in Marquette, Michigan


Ted’s request is not unreasonable. The organization should find a way to work with him and find a mutually satisfying solution. The Family & Medical Leave Act allows Ted to take up to 12 weeks of leave to attend to his child’s health problem, if he so desires. It would likely benefit the organization to accommodate Ted’s request for a modified work schedule, rather than lose him for 12 weeks. Ted and management need to discuss schedule options to determine the number of work days and their duration. The modified schedule should be temporary, not permanent. If Ted’s onsite supervision is not essential, telecommuting is one frequently used solution for cases in which the employee needs to be at home.


Ted’s job responsibilities, however, should not be reduced if a modified schedule and telecommuting are provided in response to his request. This would place an undue hardship on the organization and other employees—particularly other supervisors who have to pick up his share of the workload. If Ted wishes to go to part-time status in order to attain a modified schedule and reduce his workload, he must recognize the potential for change in his total compensation and benefits package—a reduction most employees do not want to make even without the addition of the family health problem that Ted is facing.
Martin B. Kormanik,
Senior Associate,
O.D. Systems Inc. in Alexandria, Virginia


I would first try to work with Ted and his wife for a low-impact solution, such as moving one of them to an alternative shift. If that could be done in our firm, it would be top priority.


Failing that, I would next explore whether both wage earners need their onsite time halved, in order to care for the son. If only Ted is seeking a 50% cut, I would encourage, and perhaps insist that they share the child-care impact equally.


The constraints on Ted’s onsite time come more from the character and complexity of his and his employees’ work, than from a concern about precedent setting. It may help to fit the 30 hours of onsite time into three days, also saving him two or more round-trip commutes weekly. With his long and successful supervision, one or more of his employees may be ready to take on some newly delegated tasks for self-development.


Ted could take 10 hours per week of FMLA leave for 48 weeks, and his wife could do the same. In several states, such as Washington, each also could use sick pay to care for a seriously ill child.


It seems possible that either of them might be at risk to lose pay or position if performance in their jobs were to suffer substantially over an extended period. Long term, they may need to consider and plan for lifestyle adjustments in consideration of the home-care and health-care costs of the child.


Gerald W. Hedman,
VP Human Resources,
Teknon Corporation,
Spokane, Washington


Personnel Journal, May 1996, Vol. 75, No.5, pp. 130-131.


Posted on April 1, 1996July 10, 2018

Under Fire at the LAPD

When Deputy Chief David Gascon talks about the Los Angeles Police Department, you get the idea he wouldn’t mind returning to the less-fettered days of Adam 12 or Dragnet. It was an era when officers were respected and the bad guys were easy to identify; a time before Rodney King, the L.A. riots, O.J. Simpson, Mark Fuhrman and even the actions of Police Chief Willie Williams began to raise ethical questions and erode morale. “Beleaguered” may not be a strong enough word to describe the department that has been broadsided by an ongoing array of problems throughout the 1990s. It’s one thing to become the world’s most famous law enforcement agency, and it’s another to become the most famous and most reviled.


Gascon, a 25-year veteran of the department and a deputy chief who oversees the human resources bureau, knows no amount of dreaming will ever return things to the nostalgic days of yesteryear. He knows the LAPD is caught in an enormous cross-fire between the public, the media, the courts, and a city and nation undergoing profound changes. “The department must adapt,” he says with a sense of urgency and resignation. “We must always find ways to continue to improve.”


Today, the LAPD is trying to reinvent and refashion itself to boldly march into new territory. During the last several months, the department of more than 10,000 has stepped up recruiting, tightened hiring practices and provided more training for officers. It has tried to slash bureaucracy and boost productivity—while making a far greater effort to sensitize itself to the needs of the community and its own officers. It’s working to become less tolerant of racism and sexism, and it’s attempting to boost morale and stem a hemorrhage of officers fleeing the force. Amid all the turmoil, one thing is clear: The city’s future rides on its ability to change and adopt successful human resources practices.


Move to adopt corporate HR standards.
Whether it’s succeeding with those changes—and whether the new practices are enough to turn things around—depends on one’s perspective. The department certainly has its fair share of critics, many of whom claim it isn’t doing enough to change its stodgy thinking. And its actions over the last few years have certainly done little to dissuade such sentiment. “The department is mired in a paramilitary mindset that doesn’t work in today’s world,” remarks Carol Sobel, senior staff counsel for the American Civil Liberties Union, which has filed a class action suit against the LAPD charging sexual discrimination.


States Rabbi Gary Greenebaum, former president of the Los Angeles Board of Police Commissioners: “The department can claim the press and politicians beat it up, it can claim the public doesn’t understand, but incidents continue to happen.” Greenebaum says he would like to see the organization subject to the same HR standards as any major corporation. “Most of the people who hold top positions don’t have any real training. They’re running things by the seat of their pants. They aren’t career human resources professionals—they’re cops who have been promoted.”


Make no mistake, the force has endured a persistent battering by the press, politicians and the public, all of whom have questioned its commitment to eliminating racism, sexism and a litany of other nagging issues. But for Gascon, 46, who took over the HR helm in October of 1994, the focus remains forward and the outlook remains up. “The department has always been a command-and-control structure. There has always been a thick hierarchy,” he says. “But this isn’t the same police department it was in the past. We’ve changed and we’ll continue to change as it’s appropriate. We’re working hard to enhance officers’ skills, build a department that’s cohesive and strong, and remain true to our mission: to help people and prevent crime. There’s a lot of issues to tackle, but there’s also an incredible opportunity.”


Learn from the past.
If the events of the last few years have taught the LAPD’s top brass anything, it’s that the force must undergo change. The department’s public lashing over the Rodney King beating and the clear embarrassment it suffered at the hands of Mark Fuhrman during the O.J. Simpson trial have signaled a need to deal with officers who harbor racist attitudes and adhere to less-than-professional standards. As Rabbi Greenebaum, puts it: “The recent problems raise serious questions about hiring, screening, training, retraining and many other practices. Although the LAPD has a core of officers who are dedicated and professional, it’s very much in disarray.”


One of the department’s toughest challenges has been to hire enough officers to maintain adequate staffing—a problem that transcends morale. A decade ago, LAPD officers were among the highest paid in California. Not anymore. According to a 1993 survey conducted by the Los Angeles Police Protective League, the department ranked 78th statewide out of 100 law enforcement agencies. In fact, LAPD officers typically earn 10% to 20% less than their counterparts in surrounding communities. Consider this: The maximum tenured salary for an LAPD officer, with benefits, is $45,431 a year. A few miles away in Glendale, a community with only 190,000 residents, officers top out at $56,700. “That has put us at a tremendous disadvantage for recruiting and keeping officers,” states Gascon.


Help is on the way, though it might be too little too late. A $43 million federal grant is providing funding for 643 new officers on top of the current 8,622 (the LAPD also employs 2,842 civilians). But continuing high turnover has made that task difficult, to say the least. Many officers simply find better working conditions and higher pay elsewhere. In fiscal year 1994-95, for example, 486 officers left the force, a whopping 110 more than the year before. Even more disturbing: 140 of the cops were below retirement age. “We’re trying to increase the LAPD’s numbers to a higher level than ever before at a time when we’re coping with negative publicity and attrition. Officer morale isn’t what it should be,” admits Dan Schatz, commanding officer of the Los Angeles Police Department’s personnel division.


Marketing the force.
Human resources is attempting to combat the recruitment problem with new strategies. It has begun recruiting aggressively and using techniques that might have once been considered wacky. Instead of limiting the search for new officers to job expos, football games and ex-military personnel, it now makes the rounds at universities, community events, ethnic gatherings, gay parades, even hot-air-balloon festivals and concerts. It also has begun raiding other police departments, landing trained officers who don’t need to learn police work from the ground up. “We’ve taken the position there’s nothing beyond the reach of the LAPD’s recruitment efforts,” says Gascon. The department also has put together a series of commercials that now appear on late-night local television.


Attracting large numbers of recruits is a start, especially if one considers less than 5% manage to graduate from the academy and hit the streets. That works out to recruiting 1,200 to 1,500 applicants to fill a class of 80 at the academy. But even successful recruiting doesn’t eliminate many of the nagging problems the department has endured. For instance, a 1981 federal consent decree mandates local law enforcement agencies hire according to the ethnic and gender composition of their communities. The LAPD, along with many police departments, has scrambled to raise the numbers to acceptable levels.


The department largely has succeeded in reaching federal standards—only 40% of new recruits are white males compared to more than double that number three decades ago. Today, Hispanics account for 27% of the force, 15% of it are African Americans and 4% are Asians. However, the City of Los Angeles wants the department to boost the hiring of female officers to match the levels of the county workforce. That would push the number of women up from the current 25% to more than 43%. But finding qualified female applicants who are interested in police work and who are able to pass stringent physical tests has proven vexing, says Gascon. Women, perhaps because of social and cultural issues, still don’t seek careers in law enforcement with the same interest level as men.


Another sticking point has been the applicant-screening process itself. Critics contend that the LAPD’s background checks and psychological screening haven’t done a good enough job in pinpointing potential problems. More emphasis needs to be placed on ferreting out racists and sexists before they’re ever handed a badge, they say. “Mark Fuhrman isn’t an isolated phenomenon,” says Sobel. “Although the problem isn’t as great as it was 10 years ago, there still are too many bad apples finding their way into the LAPD.” Fuhrman, of course, was the lead detective responsible for collecting evidence at the Simpson estate after the murders of Nicole Brown Simpson and Ronald Goldman two years ago. He gained particular notoriety after recordings of racist remarks he had made were played during O.J. Simpson’s trial.


Commanding Officer Schatz admits the LAPD’s selection practices aren’t perfect, and that a partial revamp has taken place as a result of the Mark Fuhrman incident. (The LAPD also works with the City of Los Angeles to handle personnel matters relating to hiring, such as overseeing the process.) Moreover, the department is asking tougher questions and probing more thoroughly into applicants’ backgrounds than ever before. In addition to a written exam, interview and various medical/psychological tests, candidates must pass a background investigation that includes an examination of work history, financial records and personal references. Candidates can be disqualified for any racist, sexist or homophobic comments or behavior. (See “Are You Well Armed to Screen Applicants?” in Personnel Journal’s December 1995 issue.) “The bottom line is you can look around the country and see the fallout when stringent hiring practices aren’t in place. Departments that have lowered their standards have found themselves in a lot of trouble,” he says. In fact, the Chicago Police Department recently faced the public humiliation of discovering gang members on the force, while the Miami Police Department found it had hired several ex-felons—some with drug convictions.


Adds Gascon, who has faith in the basic integrity of the system: “We don’t want anyone on this force who shows a lack of tolerance for anyone else, and we don’t want anyone who displays a propensity toward violence. Still, no matter how carefully you check, a few individuals who harbor racist or sexist views are going to sneak through. There’s no perfect system. Some people are very adept at concealing the truth.”


The LAPD seems to be responding. In fact, some say the effort to tighten hiring practices has gone too far and that the department is now overreacting. In February, the Los Angeles Times chronicled a story of a candidate, Randy Mehringer, who finished third in his academy class, volunteered 2,000 hours as a reserve officer, and earned praise in the police union’s newsletter and a guest spot on the television show Cops. But after making a racial joke about the Million Man March and later admitting it during a background interview for the LAPD, he was told he didn’t meet the department’s standards for “respect for others.” The decision was questioned by many, including a deputy mayor and city councilwoman, who openly wondered whether the police department was setting unrealistic standards and focusing on a single incident at the expense of a candidate’s history.


“There’s were a lot of men who had a difficult time accepting the fact they had a female partner willing to get into a bar brawl or gunfight.”


What all this points out, of course, is just how sensitive the issues of diversity and race are in Los Angeles. In a community in which more than 50% of the population now is Hispanic, Asian, African American and other minorities, the bar clearly has been raised to greater heights—and the LAPD is now trying to leap over the hurdle. It’s all complicated by the department’s long and festering history with minorities, who have accused it of harassment and unequal protection and enforcement. Although the LAPD has deployed officers who speak Spanish, Korean, Chinese and other languages into the field, critics contend the department still hasn’t adapted to the community’s needs and requirements.


Good cops, bad cops.
Whether the LAPD’s personnel problems are a hiccup or a full-blown epidemic depends on who one talks to. Critics like Sobel argue that despite the department’s public stance of adopting a zero-tolerance policy toward bad officers, too many problem officers remain. She’s able to rattle off a list of lawsuits now directed at the department. Former Police Commission President Greenebaum echoes the sentiment. “Saying the force has a zero-tolerance policy doesn’t eliminate the problem. There must be greater accountability and a greater willingness to discipline than presently exists.”


Indeed, one of the loudest criticisms leveled at the LAPD is that it isn’t punishing bad officers and aggressively weeding out problems. How, ask critics, could the likes of Mark Fuhrman exist on the force for years? How could certain officers land promotions and continue to deal with the public after highly questionable incidents? And there’s plenty of evidence to support their claims. After the 1991 Rodney King beating, former Mayor Tom Bradley established the Christopher Commission, a blue-ribbon panel designed to offer recommendations on ways to reform and improve the department. Until recently, 33 of the 44 officers identified as problems by the commission still were on the force, and 19 were working the streets.


In September, one of the questionable cops, Andrew Teague, confessed to forging an important document in a murder case and promptly handed in his badge. Last July, another of the 44 officers, Michael Falvo, shot and killed a 14-year-old Latino boy. Police say Falvo responded to a report of teens brandishing a shotgun. But witnesses claim the boy had thrown the gun over a fence and only was holding a flashlight when police approached him. Falvo was temporarily assigned a desk job following the incident.


Gascon admits there have been problems. Yet, he also believes the media and critics have been too quick to issue blanket condemnations. “The fact is, you have to judge each individual and each incident on a case-by-case basis. You have to provide officers with due process. There’s no question some officers require psychological referral and evaluation. There’s no question discipline hasn’t always been handled appropriately by the organization. But you can’t go back and punish someone for something they did five years ago. We’re attempting to educate our personnel and crack down on problem officers.”


In fact, the department is battling the problem on several fronts. One of the most significant things it has done is establish a series of programs to deal with attitudes and values. In recent months, the LAPD has held seminars, sent out memos and held staff meetings designed to help officers identify colleagues who are beginning to experience problems. Anyone suffering from stress or personal problems is encouraged to voluntarily seek counseling, which is kept confidential. Officers can receive up to 10 sessions at no cost. In fact, if a superior feels that an officer needs attention, he or she can politely ask that person to attend sessions on a voluntary basis. If the officer refuses, it’s then possible to order the individual to take a behavioral evaluation and receive counseling—though confidentiality no longer is provided.


The department also uses peer counselors—other officers who have excellent service records and years of experience—to informally mentor troubled officers. More than 200 currently exist, and each receives three days of training. In 1994, 3,828 officers received peer counseling, a 12% increase over the year before. “It’s becoming more acceptable; officers are recognizing the value of sharing their problems and learning from the expertise and experience of others who have been through it before,” says Sergeant Frank Virgallito, the LAPD’s employee wellness coordinator and a peer counselor himself.


In fact, Virgallito believes the department is undergoing a profound change of values. Not only is it becoming acceptable—even desirable—for officers to use the peer counseling program, newer cops who attend the training academy are accustomed to both men and women in patrol cars—something that many older officers have never entirely adjusted to. “There’s no question that when men and women started sharing patrol cars in the 1970s, there was tremendous resistance,” says Virgallito. “There were a lot of men who had a difficult time accepting the fact they had a female partner willing to get into a bar brawl or gunfight. There was a tremendous distrust of their abilities. We still have a few dinosaurs, we still have a few harassment problems and gender discrimination, but the department is operating in a solid fashion.”


Finally, there’s the issue of training and retraining officers. Although new recruits continue to receive seven months of training, the organization also is beefing up training for existing officers. In the past, LAPD personnel received a minimum of 24 hours of ongoing professional training every two years—a figure that Gascon sees as inadequate. He now hopes to add 18 days of additional training per officer over the next 18 months. The department also is embarking on an ambitious project to provide training to desk officers who now are being redeployed into the field. More than 300 desk jobs and administrative functions now are targeted for civilian employees—including previously taboo areas like internal affairs and front-desk positions in stations. As a rule, civilians don’t require the extensive background check and training of a peace officer and often are paid a lower salary. In fact, most civilians work at desk jobs or in labs that have nothing to do with actual policing.


Regain past glories.
It appears the Los Angeles Police Department is making progress. In 1995, it hired a record 1,164 new officers—nearly 11% above the goal set forth in Los Angeles Mayor Richard Riordan’s Public Safety Plan. The department also received $26.9 million in additional funding from the City of Los Angeles to increase police staffing. Officers on the beat say while morale is still a problem and the department often lacks leadership and vision, things aren’t quite as bleak as a couple of years ago. “It appears the department may be turning the corner and moving forward,” says one 10-year veteran who prefers not to be identified. “The city and the department’s top brass are beginning to understand it isn’t business as usual. Times are changing and the department must keep up.”


Gascon is certainly optimistic. A slide in funding that lopped the LAPD’s portion of the city budget from about 35% in the mid-1970s to below 25% in the 1980s has begun to turn around. Old and obsolete equipment also is being replaced. And, through it all, the department has learned to manage resources more efficiently and accomplish more with less. “We haven’t lost sight of our basic mission: to serve and protect the citizens of Los Angeles. Crime is the top priority, and we’ve done a good job of battling it,” he says.


Yet whether the LAPD’s chief and top administrators—including Gascon—can guide the department into the future while regaining the glory of the past remains a giant question mark. Whether the department is successful in beefing up training, instituting tougher disciplinary procedures and revamping the performance evaluation process to help weed out the Mark Fuhrmans in the force is anyone’s guess. The LAPD’s problems probably aren’t as bleak as some would suggest, and its future certainly isn’t as dim, but the road ahead requires deft leadership and HR skills. It requires a change from a reactive mindset to a proactive approach.


“We’ve had some problems and made some mistakes,” says Personnel Director Schatz. “But we’re now making major strides. Despite all the negative publicity and controversy, the LAPD is still considered one of the best police departments in the nation.” Adds Gascon in a matter-of-fact tone: “There are a lot of challenges ahead, but we’ll tackle them.”


Personnel Journal, April 1996, Vol. 75, No. 4, pp. 98-104.


Posted on April 1, 1996July 10, 2018

Big Mac’s McGlobal HR Secrets

It’s no small potatoes. McDonald’s International, that is. Cooking up its first international revenues in 1967 with restaurants in Canada and Puerto Rico, McDonald’s now serves up a fast-food extravaganza ranging from soup to nuts (or nuggets, in this case) in 18,380 restaurants in 91 countries. Total revenue for 1995 was more than $10 billion, and total sales outside the United States contributed 54% to the firm’s consolidated operating income for the year.


This is an organization that knows how to grow globally. Each day, more than 33 million people around the world are gobbling down McNuggets and Big Macs faster than you can say: “two all-beef patties special sauce lettuce cheese pickles onions on a sesame seed bun.” And they’re served by more than one million employees, with estimates that the number will double by the year 2000.


It’s a company that reveres flexibility and sensitivity to local cultural mores. You may think that translates into flavoring the burgers a little differently from country to country, but the company’s global astuteness is much more far-reaching and profound. For a business, in the minds of Americans, that’s synonymous with all-beef hamburgers, McDonald’s will open its first restaurant in India this year without any beef products at all. Vegiburgers, or burgers made with mutton or lamb, may take their place. And, as an organization that holds distinction for actively promoting diversity in the United States, it has a restaurant in Saudi Arabia with two dining rooms—one for men, the other for women and children. These are lessons in profitable cultural sensitivity.


This cultural sensitivity spills over to the company’s HR practices. “One of our guiding principles is that our restaurants should always be a reflection of the communities they serve—not only the individuals we employ and the culture and ethnicity of those communities, but also the employment practices,” says Rita Johnson, staff director in international human resources with responsibility for Central Europe.


That means not stuffing the American way down their throats, but rather taking the company’s best practices from around the world and working with local staff to blend those into local practices. McDonald’s then comes up with the most effective way of doing things in a particular location.


“While there may be some specific differences worldwide in local labor laws or employment practices, our philosophical approach to employment is the same whether we’re in Beijing or Budapest,” says Robert Wilner, home office director, international human resources.


Adds Johnson: “Our global perspective is that whatever market or country we’re going into, we always employ the most positive people practices and exceed the expectations of our employees.”


McDonald’s vision is just the beginning.
Exceeding expectations is something McDonald’s does well. Try to remember life before drive-thrus and you get a taste of the influence this corporation has had on our lives. It’s not just vision. Good ideas wilt like week-old lettuce if there’s no business acumen to propel them. And, while McDonald’s may convince its customers that they “deserve a break today,” the company is relentless in its pursuit of expansion based on solid business goals. All you have to do is look at the organization’s selection, hiring and training procedures to know instantly that it works very hard to align HR systems with business objectives. And the planning required before entering a new country is anything but fast-food casual.


“When we open in a country [that’s] new to us, we do exploratory visits—sometimes several years in advance of building the first restaurant,” Johnson explains. “We collect information so we can approach it from a fact-based, decision-making standpoint. We need to be sure the market is going to be profitable for us so we take a look at the demographics.” The company asks itself: Would this particular market support a restaurant? What other food-service industries are currently in this country? Would we be the first food-service company or are our competitors currently established in the country? What kind of success are they having?


In addition, the company benchmarks with other companies already in the country to find out what their problems and issues are. What would they do differently, and what are their HR issues? What kind of business infrastructure already has been established?


As those questions are answered, HR rolls up its proverbial sleeves and steps up to the front of the line. It has a new-country outline that contains a list of employment-practice questions that must be answered as part of the fact-gathering stage. What are the labor laws? Would the company be able to establish part-time and flexible work schedules? Are there a specific number of hours employees are allowed to work? Can the company employ youth under the age of 18? What other services must the company provide?


In many countries in Central Europe, for example, employers must provide showers and lockers. This may be from a lack of shower facilities where individuals live, an inadequate supply of hot water or simply the high cost of using standard utilities. So the employer is expected to provide some of the services that may not be easy to get at home. McDonald’s already does this in many of the countries in which it operates, including Rumania, Slovakia, Latvia and Poland.


In many locations, just building the golden arches and locating food that will meet company standards requires hiring an entire network of support services such as engineers, construction workers and agricultural experts. It’s a tall order for HR professionals to fill. But one they have had lots of practice doing.


Entering a new country requires extensive planning and flexibility.
To enable McDonald’s to open restaurants in new countries, the new local HR managers, as well as the local restaurant managers, must receive training. So they can observe real operations, the training often takes place in a country where there’s already an established restaurant. A sparkling-clean, stainless-steel counter with quiet cash registers and no customers is quite a different work scene than one with bustling crew members reaching over each other to scoop fries into paper bags, fill beverages and scurry to get the requisite Filets-O-Fish and Quarter Pounders on trays or in take-out bags while people are lined up 10-deep.


Consequently, training new managers often requires that they cross borders regularly—to train Monday through Friday and then travel home on the weekends. This means visas and work permits have to be in order for each employee, which can be a tricky balancing act. HR must ensure all paperwork is prepared accurately well in advance, but not too far in advance—because these individuals can’t be employed too far ahead of the training period.


“We currently have managers training in New Zealand who live in South Africa,” says Johnson. “When we interviewed in South Africa, one of the questions we asked was if the person had a passport. That’s a question we wouldn’t ask in the United States.”


And, early on, local attorneys well-versed in labor laws coordinate with the HR director for the country to establish what the policies are going to be. “We have a responsibility to ensure that all the local employment practices, policies and regulations are met. We do a lot of research to ensure that happens. We understand as a global company that we can’t simply take the employment practices as they are in the United States and transplant them,” says Johnson.


However, there are times when McDonald’s introduces American ways to other countries—for everyone’s benefit. “Typically, when we go into a new country, there are lots of times when the quick-service restaurant industry is either nonexistent or very new. As a result, the culture, laws and customs don’t accommodate the things we need to operate our business properly. It becomes an opportunity for McDonald’s to bring some of these things into a country and to put some folks into the workforce who wouldn’t normally be in the workforce, particularly homemakers and university students who are working for the first time,” says Dan Laino, home office director, international human resources.


“We often introduce the concept of flexible scheduling or part-time scheduling. It’s quite a common occurrence for us to go into a market and have our practices of flexible and part-time schedules be the first that have ever been introduced. Sometimes we have to be very adaptable and patient in trying to establish these practices,” says Laino.


For instance, it isn’t something the company can implement immediately in some cases, especially if the common employment practice is to hire individuals full time. It may require a lot of time talking to labor ministries as well as other local business people to explain the advantages of having flexible or part-time scheduling as an employment practice. Full-time employment precludes young people and students in some cases from holding a job. “We provide the fact-based rationale that you can actually employ more individuals if you have a practice of part-time employment because some of those people have children at home or are students and aren’t able to be employed full time,” says Johnson.


Selecting the best from a menu of talent.
Whether hiring full-time managers or part-time cooks, recruitment is easy for McDonald’s. When it began hiring for its restaurant in Moscow’s Pushkin Square, 27,000 applicants tried out for the opportunity to don Ronald McDonald’s colors. This initial rush of applicants is typical because of the company’s immediate brand recognition. “We put the arches in a newspaper [ad] and we get an onslaught,” says Laino. “The trick is to maintain that employer image and enhance that image so we’re the employer of choice in a country.”


McDonald’s establishes itself as an employer of choice by paying top wages for high-quality employees and providing a benefits package that exceeds the minimum. “If you want to employ the highest caliber of individuals, you need to pay them a wage that draws [them in],” says Johnson.


What does that high-caliber individual look like? The most common trait McDonald’s employees share is an attitude that customer service is most important. “The employee’s ability to be customer-service oriented is just as important whether [he or she is] serving the customer directly or whether [he or she is] serving someone who’s serving the customer directly,” says Wilner.


Selection, therefore, focuses on identifying employees—whether entry-level or management—who are customer- focused. It begins with recruitment advertising that emphasizes customer service and continues with preliminary screening that restates this theme: The right attitude is equally as important as—or more important than—technical competency. Then, as the company moves into its selection systems, it looks at specific skills, general knowledge and customer service. “Finding, developing and retaining the best people is one of our most important functions in HR, and we see it as an integral part of our success as a company,” says Wilner.


Some naysayers don’t believe the McDonald’s attitude translates into every language. Before opening Russia’s Pushkin Square restaurant, now the busiest one in the world serving 40,000 to 50,000 customers daily (for a total of 50 million since 1990), many people on the sidelines expected it wouldn’t be easy to motivate employees: that this crew of 1,560 individuals weren’t going to want to wait on customers, smile and have a good time doing it.


“I think back when we first opened in Moscow and people said they weren’t going to be the type of employees who were going to get turned on,” says Laino. “When we opened the first restaurant, worldwide video coverage showed that customers would walk in and they thought they’d landed on another planet. They faced a highly enthusiastic, high-spirited crew at the front counter [with arms extended, and with] smiles on their faces, asking if they could be of help. That’s what we call ‘ketchup in the veins.'”


How does McDonald’s ensure it hires these kinds of individuals? Already in the hopper is research about successful McDonald’s managers and the knowledge, skills and abilities they possess. A success profile includes leadership skills, ability to manage people in the restaurant environment and high work standards. For store management positions, after the initial screening and before the final decision, people are invited to work for three to five days in one of the restaurants. “It gives the applicants a chance to try out the job and screen themselves out. It also gives us an opportunity to see how the people actually function in the environment they actually are going to be working in,” says Wilner.


With a strong commitment to staffing locally and promoting from within—even when opening locations in new countries—McDonald’s HR finds good talent efficiently. The commitment initially is to find good people and be able to turn over the operation to local employees who will run and manage it.


Take Beijing, for example. The Tieneman Square McDonald’s opened with approximately 100 managers for a large, 26-cash-register restaurant. After they were hired, workers began training in Senzhen, which is approximately 1,000 miles away. “We have them work in a restaurant working typical shifts, working shoulder-to-shoulder with an existing manager learning some of the basics of the management job, and at the same time we get a chance to try them out,” says Wilner. The manager fills out an evaluation, and the individual fills out one to determine whether or not a job offer should be made.


“Our belief in promoting people from within, throughout all levels of the company, is a major way we source our management people in China, as well as in other markets around the world,” Wilner says. With a large percentage of store managers who have come up through the ranks, it helps attract people because they know they can work hard and move up. “It also fills our recruiting needs. When we have someone who understands our corporate culture, understands our way of doing business and understands the local culture, it’s a successful part of the way we develop our global talent.”


Comprehensive training assures uniformity.
Having the right employees in place is just the first step. Then, there’s training. And, if the company serves up anything well, it’s certainly training. Hamburger University may be headquartered in Oak Brook, Illinois, but it’s set up to provide training in 22 different languages, to provide simultaneous translation and even to teach in two languages at the same time. There are also training centers in Munich, Germany; Tokyo; Sydney, Australia and London. The training centers get it down to such details as being sure crew members know at what temperature hamburgers are supposed to be cooked and how to inspect restaurant facilities to ensure quality standards are met.


There’s a complete training department in mainland China as well. Managers are taught to give performance reviews, including how to give feedback, how to listen and what to do if a person becomes defensive. And, similar to other locations around the world, the China facility trains managers on every facet of the operation. They, in turn, train their crew employees.


Little things such as logistics may get in the way, but McDonald’s managers consider them only hurdles to overcome. For example, when the company was opening new locations in South America, some pieces of equipment were available, but managers learned that the hamburger grill and the deep-fat fryers wouldn’t arrive in time to train employees before the store opened. So, what did they do? They created mock-ups of the equipment out of cardboard. Crew members practiced cooking burgers on a cardboard grill and worked dummy fryers to perfect their skill in cooking McNuggets and fries. Indeed, by being able to simulate the training it needed for the crew, the restaurant opened on time with a trained staff.


McDonald’s sees its biggest challenge today as trying to set itself apart from its competitors. In its 1994 annual report, McDonald’s says: “In a copycat world, the best way to stand out from the crowd is through customer satisfaction—100% of the customers, 100% of the time…. It’s no longer enough to measure restaurant performance by our internal standards, no matter how exacting. Success has to be measured through the eyes of the customer and the people who serve them.”


While many businesses may not need to approach their operations with this level of exactness and attention to detail, McDonald’s way of careful planning is a lesson for every business. It’s a multinational company that’s able to deploy its HR talent globally to painstakingly address local concerns. It requires flexibility and creativity—and some of those special ingredients—that all companies can create if they desire.


Personnel Journal, April 1996, Vol. 75, No. 4, pp. 46-54.


Posted on April 1, 1996July 10, 2018

The Four Safe Harbors of Investment Information

The Department of Labor recently has issued guidance on the amount of investment education a company can offer before stepping over the line into “investment advice,” prohibited by ERISA. The guidance named four “safe harbors”—categories of information that generally won’t be considered investment advice. These are:


One—Plan information:
information such as benefits of participation, reasons to contribute as much as possible, the impact of pre-retirement withdrawals, and the investment information required by the 404(c) regulations, such as prospectuses and fund returns.


Two—General financial and investment information:
general financial investment concepts, asset classes, the historical returns for different asset classes and the effects of inflation over periods of time.


Three—Asset allocation models:
models that provide participants with portfolios of hypothetical individuals with different time horizons and risk profiles. Models should include all material facts and assumptions on which the models are based.


Four—Interactive investment materials:
asset allocation models may be applied to individual employees’ investing issues through worksheets, software and other similar tools.


Note: All four of these “safe harbor” areas have additional conditions and requirements. Employers are advised to seek a full copy of the guidelines from the Department of Labor.


SOURCE: Hewitt Associates


Personnel Journal, April 1996, Vol. 75, No. 4, p. 72.


Posted on April 1, 1996July 10, 2018

Hiring the Gang Member Gone Straight

The Dilemma:
You are the HR director for a high-end department store in Los Angeles. Your current focus is to hire an assistant buyer. This person will be in frequent communication with offices of designers in Europe and New York and will assist the sportswear buyer in determining trends and choosing merchandise. Marie is your top candidate by far, but you have reservations. In her favor, she has a degree in fashion design, speaks some French and Italian and has worked for two of Beverly Hills’ trendiest boutiques. But on the flip side, she grew up in a tough neighborhood and although well-dressed, you’ve noticed a few small tattoos on one hand—a possible sign of gang membership.


Your in-house recruiters have given her the thumbs-up after a standard background check. Should you accept Marie’s embarrassed explanation that the markings are from a time long ago when belonging to the neighborhood gang seemed like her only choice? Or should you give in to your fears and continue searching for someone else?


Readers Respond:
Not providing Marie with this new op-portunity because she “grew up in a tough neighborhood” and has “a few small tattoos on one hand” is ridiculous. Marie apparently has a good work record, passed the background check, admitted her past (I repeat, past) gang affiliations and is obviously qualified for the job. So what’s the problem?


Are we, as HR managers, never to forgive and forget—even after an employee has distinguished herself on the job? In this scenario, it appears that Marie’s past gang membership occurred before she joined this company. So, we should hold that against her? Is Marie being accused of doing anything wrong?


Most of her work is going to be by phone, although the occasional meeting is sure to come up. So the argument that these small tattoos are unsightly and, therefore, can negatively affect her professional appearance is null and void.


This dilemma isn’t a dilemma at all.
Mark J. O’Brien
Human Resources Manager
Remediation Technologies Inc.
Concord, Massachusetts


I found the dilemma in the February 1996 issue of Personnel Journal very interesting because I was faced with a similar situation while with another employer several years ago. We resolved the problem by asking the prospective employee whether he would be interested in either removing the tattoo or having another tattoo drawn on top of the gang tattoo at his expense to get the position. He thought the removal would be too costly, so he opted to have another tattoo drawn on top of the gang sign. The result was a tattoo of a flower that looked very benign and ordinary and carried no gang message. As far as I know there has been no problem with the employee since he was hired.
Michael Salkowski
Director of Personnel/Admin. Svcs
School District of South Milwaukee
South Milwaukee, Wisconsin


Having been in retail for 20 years before starting my own company, I have very mixed feelings on the issue you present to us. In the retail corporate world, re-cruiters are put under undue stress when it comes to filling open jobs due to the high turnover rate in the industry. So it doesn’t surprise me to see that the corporate re-cruiters gave this young lady the thumbs up. They probably would have given the thumbs up to someone a lot less qualified for this position if the references came in good. In the retail world, you don’t have to be an expert in the job function, and in the case of an assistant buyer (or in the industry, they call them gofers) all you need is to be able to work an exorbitant number of hours to get the job done. But to answer your question, the HR manager does have a couple of options. First: Do a more thorough investigative background check to ensure that this applicant did not, in fact, have any gang-related activity in her past, or anything else out of the ordinary.


Second: Give the applicant a pre-em-ployment test to measure certain personality traits that might show signs of dishonesty. And finally, what I recommend all my clients do in making the final offer is arrange a 90-day probationary period, with monthly reviews. This ensures the candidate is going to put his or her best foot forward for you, and it gives you an opportunity to terminate the employee if she doesn’t live up to the standards you expect. Just be sure that if you want to terminate this employee, you do so within the 90-day period. So, to answer your question: Yes, I would hire the applicant because the reality in the retail industry is that if you don’t hire her, your competition will. And in this case, with this applicant’s background, they probably would.
Michael Ferraro
Human Resource Consultant
Training Solutions
Chantilly, Virginia


A review of the information at hand re-veals the following:


  1. Marie is by far the top candidate
  2. Marie has a degree in fashion design
  3. She speaks some French and Italian
  4. She has job experience and performance success in two of Beverly Hills’ trendiest boutiques.

The fact that she grew up in a tough neighborhood seems to have little to do with her current job and job performance. Many individuals—in fact, perhaps some reading this column—may have had various obstacles or failures in their past. We should be more interested in the current performance and potential of all contributors than in some veiled or assumed problems in their childhood.


The small tattoos on one hand may perhaps be a sign of previous gang affiliation, but by themselves they’re no clear indication of continuing gang contact. These tattoos may be a sad but continuing reminder to Marie of the past she left long ago. If there’s concern about how other employees and designers will view Marie when they notice the tattoos, perhaps waterproof makeup, jewelry or even removal are options. I think Marie should be hired based on her abilities and not penalized for the possible mistakes of her past.
Susan Kubiak
Manager Human Resources
Mallinckrodt Medical Imaging
Angleton, Texas


I would accept Marie’s explanation regarding the tattoos. However, I would question that “standard background check.” Find out just how thorough the check was before you make a hiring decision. You even may want to talk with Marie’s former employers yourself, as well as the school where she received her fashion design degree. Additionally, I would let Marie know that your company does a thorough background check on all job applicants and evaluate her reaction. Then if everything checks out, I would not hesitate to offer her the job.
Henry J. Mengay
Human Resources Manager
WNED-TV
Buffalo, New York


Personnel Journal, April 1996, Vol. 75, No. 4, pp. 147-151.


Posted on April 1, 1996June 29, 2023

When Sexual Harassment Is Foreign

Scenario #1:
Sandra Whitney is on a three-year, career-enhancing assignment in Mexico for her company and finds herself the target of unwanted sexual attention from her new male manager—a citizen of the host country. Whitney complains to a female co-worker (who’s also a citizen), but is told this behavior is “normal.” When the behavior persists after Whitney has made it clear she isn’t interested, she consults with the human resources manager in her host country. She finds there are no laws protecting women from sexual harassment on the job, although she’s assured that her company’s policy and the U.S. laws will be maintained.


Scenario #2:
Connie Bosworth is working on a team with several men from Europe who have been sent to the United States for six months. Bosworth finds these mens’ flirtatious language and gestures charming and endearing, but she feels ambivalent because she realizes that if an American man said the same things to her, it wouldn’t be acceptable. Are Europeans bound by the same rules?


Sexual discrimination is a little-discussed problem in cross-cultural relationships.
Both of the scenarios above, and other tales of sexual discrimination, are realistic for today’s multinational companies and the emerging global workplace. In the past five years alone, the number of female expatriates of U.S. companies has more than doubled according to a recent news item in The Wall Street Journal on September 5, 1995. New York City-based Windham International, which conducted the survey, predicts the number of expatriate women will reach 20% (of all U.S. expatriates) by the year 2000. In addition, the U.S. workforce is ethnically and culturally more diverse than ever and this trend is expected to continue. As we struggle to understand and negotiate both the subtle and more complicated issues related to sexual harassment in our domestic marketplace, we also must be aware of the added concerns of working overseas with co-workers, customers and vendors of many different nationalities.


To find out what individuals and organizations experience in the international marketplace, we asked several companies to share their stories. As consultants with extensive backgrounds in human resources management and cross-cultural business settings, we also reviewed what has been written on the subject. A key question we posed: “What have you encountered as far as sexual harassment incidents that occurred between people of two different cultures, whether they were employees, customers, vendors or clients?”


While exploring this relatively uncharted territory, several corporate human resources executives from multinational organizations told us we’d have trouble getting any information. Because of the potential liability, and the potential threat to an organization’s image, they suggested that candid responses would be scarce. Indeed, the most frequent response we got was that companies had limited experience with the issue, and therefore, they had little to report. The topic of sexual harassment is one that many organizations find difficult to address. And when it’s complicated by cross-cultural issues, it becomes even more foreboding.


In fact, several organizations refused to return our calls or stated that they didn’t want to participate. Some respondents, including human resources managers at Akron, Ohio-based The Goodyear Tire & Rubber Co. and Chicago based Amoco Corp., stated they either have had “no incidents” or none that couldn’t be handled at the local level.


Is this possible for firms having thousands of employees working both domestically and internationally? Yes, but it’s highly unlikely. At Wilmington, Delaware-based E.I. du Pont de Nemours (DuPont), a company noted for its work in sexual harassment training, there were no reported cases of sexual harassment internationally that have reached HR representatives at the corporate level. Bob Hamilton, a diversity consultant with DuPont, conceded that there may have been some situations, but they would have been handled as close to the front lines as possible. He added that third party cases of sexual harassment aren’t rare, but DuPont doesn’t keep records of these events.


George Krock, manager of EEO and selection at Pittsburgh-based PPG Industries Inc., told us: “In the last couple of years, there have been four incidents involving employees of PPG: two in North America, one in Asia and one in Europe.” Similar numbers were quoted by a senior human resources manager in a large pharmaceuticals company: Approximately one to four sexual harassment complaints are filed each year internationally.


Both of these corporations (typical of an increasing number of multinational organizations) employ tens of thousands of employees outside the United States—although many are citizens of the host country. Philadelphia-based SmithKline Beecham, for example, operates in nearly 80 countries and currently has approximately 250 expatriates. When you consider that there are many more expatriate women these days, the actual number of cases of sexual harassment globally seems surprisingly small. Have we triumphed over sexual harassment in cross-cultural settings? Have employers managed to eliminate “unwelcome conduct of a sexual nature,” not to mention ridding their workplaces of “hostile or intimidating environments”? Are individuals in cross-cultural work environments more careful, better informed and generally more respectful of each other?


That’s certainly one possibility. More believable, however, is the interpretation by one head of international HR for several financial-service organizations over the last several years. He suggests that companies might not have accurate information to report because employees are cautious about disclosing sexual harassment incidents—particularly when they occur cross-culturally. There are many reasons for this. One is the problem that sexual harassment is often under-reported, understated or trivialized—regardless of where it occurs or who’s involved. Jim Yates, manager of human resources for international operations with Amoco, says another problem may be the desirability of the overseas assignment. “People may not want to jeopardize their jobs,” he says. These positions are highly valued, sometimes taking years to attain.


Training employees about cultural differences before international assignments may help avert problems.
Craig Pratt, of Craig Pratt and Associates based in Alameda, California, is an investigator of sexual harassment complaints for San Francisco Bay Area companies. Having been an expert witness in 40 sexual harassment court battles over the past four years, he finds that a disproportionate number of cross-cultural sexual harassment complaints involve perpetrators and victims from differing ethnic, racial or national-origin groups. He often has thought about the complexity presented by sexual harassment situations in cross-cultural contexts. His experiences strongly support the idea that when individuals from two different cultures interact, the potential for problems with sexual harassment is greater, not smaller.


Cultural relativism—the notion that ethics, values and behavior are a function of culture—is one way to understand, and perhaps to dismiss, the issue. In fact, all of the HR and international managers we spoke to raised the notion of a cultural context as central to the discussion. Pratt frequently encounters situations which might be better understood (although not necessarily forgiven) when cultural frame-works are considered. What’s acceptable in one culture may be disrespectful and confusing in another. What U.S. citizens may construe as sexually provocative or offensive, for example, isn’t shared by most—or even many—cultures.


Bill Ferra, director of U.S. management and development services for Heinz USA in Pittsburgh, reports that Europeans think Americans are “crazy” with all of our laws about sexual harassment. Some behaviors that deeply violate norms of U.S. culture may not be perceived as a problem in another cultural context. In many Mediterranean and Latin countries, physical contact and sensuality are a common part of socializing. For example, one Brazilian senior HR executive was surprised when he was admonished for calling the women at work “girls.” While this label was appropriate and acceptable in his native culture, he wasn’t aware it was insulting to North American women and could contribute to a “hostile or intimidating work environment” by U.S. standards.


Rudiger Daunke, VP of international HR for Bausch & Lomb Inc. based in Rochester, New York, notes that U.S. citizens proceed carefully in their cross-cultural relationships abroad because of cultural differences. The organizations we surveyed unanimously agreed that the incidence of sexual harassment across cultures can be diminished with adequate cultural preparation of employees. Interestingly, many international companies have such programs in place.


Bill Mossett, vice president and director of employee relations and diversity for SmithKline Beecham, says its program Managing Transculturally, is currently being rolled out for managers with assignments in the United States and the United Kingdom. This newly instituted program has both a general component as well as culture-specific information. Theoretically, managers might go through it three or four times during their careers—each time they go on assignment to a different country.


Similarly, Amoco offers its expatriates and spouses a two- to three-day, cross-cultural program. The topics covered include such issues as social behaviors, relationships, titles, dining practices and American perceptions. In addition, once a U.S. expatriate is in the host country, he or she receives another cultural orientation.


While this cross-cultural training is a proactive measure that helps diminish the potential for cultural misunderstandings between men and women, it may be inadequate and limited. None of the programs surveyed includes specific information about sexual harassment or sexual discrimination. Moreover, many U.S. companies don’t offer stand-alone sexual harassment training (although it’s sometimes included as part of diversity awareness training) for their domestic employees. Such training is rarer still for host- country nationals. One exception, DuPont, reports that as many as 90% of its domestic employees have attended sexual-harassment training. In addition, the company says most of its offshore leaders have participated, as well as its international employees on assignment in the United States. But this is rarely the case.


When sexual harassment training is provided, the content is specific to the laws and customs of the United States, not to the international destinations of increasing numbers of employees in multinational companies. The sexual-harassment programs in multinational companies—if they’re even offered or required—are for domestic, not international employees. And their focus is local, not global.


Another inadequacy to the cross-cultural preparation for most expatriates is that the courses are usually offered for employees on long-term assignment, not for the occasional visitor or business traveler. One international HR executive says that because of the lack of preparation, the occasional visitor becomes the company’s greatest liability. He says: “When [U.S. citizens abroad] aren’t culturally sensitive, they may use inappropriate gestures or names that can be perceived as harassment, even when it’s not intentional.”


One example of a cross-cultural preparation course we encountered is the Passport/Visa Program used at Amoco for its international business travelers and U.S. employees who host foreign visitors. The passport section is a fairly generic cross-cultural review, while the visa component is country-specific. The organization has visa programs for countries such as China, Russia, Azerbaijan, Egypt, Trinidad and the United States. HR currently is developing programs for Europe and Latin America. Benefits to the learners include being able to “identify, anticipate, avoid, minimize and resolve areas of potential conflict resulting from cultural differences.” The only drawback is brevity—the program is only a half-day course.


Finally, cross-cultural training is designed for employees destined for overseas assignments. But it’s rarely an option for domestic employees who’ll be interacting with foreigners on a regular basis in their jobs.


Should you define sexual harassment by home- or host-country standards?
Even when cultural preparation is adequate, it begs the question of cultural relativism. Should an organization operating in a host country with different customs and moral traditions insist that all behavior be measured according to home-country standards? If men and women have interacted in a certain way for hundreds of years in a culture, who shall judge that certain language or behavior is wrong or bad? Sexual harassment is one manifestation of sexual discrimination. Values and behaviors about women’s rights aren’t as deeply entrenched in many societies as in our own.


Mahbub ul Haq, a United Nations development program team leader and the author of a recent U.N. report cited by USA Today on August 29, 1995, states: “There isn’t a single society in the world that treats its men and women equally, not even by accident.” Undoubtedly, expatriate women face unique problems.


Jim Yates of Amoco echoes a common sentiment about the difficulties women encounter cross-culturally: “In some countries, there are barriers that have affected the ability of females to be fully integrated into a project or team.” Another senior HR executive notes: “Particularly in ‘macho’ cultures, it’s strange to interact with women in a professional capacity.” In these environments, men may take advantage of women because they’re accustomed to relating in traditional ways. Even on the egalitarian ground of the United States, the same problems may arise.


“If sexual discrimination, including sexual harassment, is the norm in some cultures, should it be ignored when it occurs.”


Jane Henderson-Loney, of the Timner Consultant Group in the San Francisco suburb of Clayton, California, describes a Middle Eastern-born man working in the United States who was accused of sexually harassing an American-born woman. She remembers him saying: “In my country, women can’t behave like this to men!”


Literature on the subject goes beyond mere sexual discrimination. It supports the view that sexual harassment is common in many countries. The Harvard International Law Journal reported in 1992: “Sexual harassment is a pervasive problem in the Japanese workplace.” In 1991, IABC Communication World reported that in Mexico, “sexual harassment has been recognized as a problem, but is accepted in our culture where many men consider themselves superior over women… ” The same source reported that a national survey in Australia revealed one in four Australian women suffered from sexual harassment at work. Sexual harassment also is happening in Africa. Pratt says when he read the 1992 deposition testimony by a Nigerian woman in preparation for a sexual harassment case, he concluded that it’s common in Nigeria—in fact expected—that male supervisors can have sexual access to female subordinates.


If sexual discrimination, including sexual harassment, is the norm in some cultures, should it be ignored when it occurs? In the book “Essentials of Business Ethics,” edited by Peter Madsen and Jay Shafritz, one respected contributor, Norman Bowie, states that he believes universal ethics do exist that should guide business conduct. However, they often aren’t obvious, and may be difficult to decipher. Probably every culture would say it believes in, and upholds, the respect and dignity of every human being. It’s hard to imagine a society that would openly condone sexual harassment. “The Essentials of Business Ethics” states: “Such moral rules are not relative; they simply are not practiced universally…. However, multinational corporations are obligated to follow these moral rules.”


In fact, the few incidents of sexual misconduct in international situations that we heard about were frequently resolved once the employees were informed that the women in question were offended by the behavior. Senior HR executives from several companies concluded that these incidents often are caused by lack of awareness of cultural differences—they aren’t malevolent in nature. Once an explanation is offered and the woman’s perspective is explained, the male (the usual perpetrator) is frequently surprised: He’s not aware that his behavior could cause such a degree of anxiety or uneasiness. The universal ethic—not to offend—seems to transcend the customary behavior and interaction of a particular culture.


On the other hand, perhaps it isn’t so innocent or simplistic. In at least two incidents we heard about, the offender was clearly told that his behavior was unacceptable. The Middle Eastern employee accused of sexual harassment was told—in no uncertain terms—that to continue working for his employer he would have to conform to treating women as total equals, or be terminated. Perhaps the explicit or implied threat of losing a job or a contract results in a change in behavior more often than the desire not to offend. The excuse that it was a cultural misunderstanding and totally unintended, may be just that—an excuse.


Regardless of personal values and beliefs, the employees in question were motivated to change their behavior to conform to the standards that were expected by the company. Most of the organizations we interviewed have explicitly stated values and policies regarding sexual harassment that are maintained worldwide. Several senior HR executives emphasized workplaces should be free of harassment for all their employees. PPG Industries’ Krock shares a viewpoint that’s typical of his HR peers: “[Sexual harassment] isn’t only contrary to our U.S. law, it’s contrary to the policies established by PPG Industries…. We don’t believe that employees can operate effectively if they don’t feel safe.”


Consider the legal and business implications of international sexual harassment.
Do the laws worldwide, and in the United States, support companies’ internal policies against sexual harassment? The U.S. laws that govern sexual harassment are covered under Section 109 for both Title VII of the Civil Rights Act and the Americans with Disabilities Act (ADA). Section 109 addresses two distinct issues: 1) circumstances in which American and American-controlled employers can be held liable for discrimination that occurs abroad; and 2) circumstances in which foreign employers can be held liable within the United States.


If sexual harassment occurs abroad, American and American-controlled corporations will be covered under Title VII. However, significant interpretation of the law occurs when determining if the company is American-controlled. Section 109 establishes four factors to consider in interpreting whether a company is, or isn’t American-controlled. Not all four factors need to be present in all cases:


  • Interrelation of operations
  • Common management
  • Centralized control of labor relations
  • Common ownership or financial control of employer and the foreign corporation.

If a workplace is located in the United States, Title VII and ADA apply to a foreign employer when it discriminates within the United States, except when that individual(s) is protected by a Friendship, Commerce and Navigation (FCN) treaty. (The FCN treaty grants jurisdiction to one country over another country’s corporation, and vice versa.)


In either case, abroad or within the United States, Section 109 doesn’t explicitly discuss sexual harassment, although sexual harassment is a part of Title VII. The sexual harassment guidelines that have been issued in this country, increasingly familiar to U.S. employees, have no counterpart in Section 109.


Furthermore, as we mentioned earlier, in most countries there are no laws protecting against sexual harassment in the workplace. A 1992 article published in the International Labour Review revealed that in a study of 23 industrialized countries, only nine had statutes that specifically define or mention the term sexual harassment—Australia, Belgium, Canada, France, Germany (Berlin), New Zealand, Spain, Sweden and the United States. The author, Robert Husbands—of the International Labour Organization, based in Geneva, Switzerland—says that the law is in a state of evolution in most of the 23 countries he studied, and that different legal approaches reflect different cultural attitudes and legal systems. In 1994, the European Parliament adopted a resolution to enact legislation obliging employers to “appoint an in-house counselor to deal with cases of sexual harassment.” (Belgium is the only European Community country currently with specific legislation on confidential counselors.) This builds on the European Commission’s 1991 Code of Practice to define and combat sexual harassment.


In addition, a November 1992 article in The New York Times said: “Legislators in some countries are also reluctant to go too far toward what they see as the desexualization of the United States.” When cultures accept and value gender familiarity and unequal roles, it may be difficult to prohibit sexual harassment at work.


The ramifications of sexual harassment when it occurs cross-culturally are more confusing and difficult from both an emotional and legal standpoint. From a business perspective, it’s an extremely important area to explore and one that has significant cost implications. With many HR concerns, the human costs of sexual harassment can be high because they directly translate into losses from absenteeism, dissatisfaction and low productivity.


The global nature of the problem adds another cost—expatriate employees are expensive employees. They tend to be high-level and require a great deal of money to support in relocation, schooling their children, tax differences and training, to name just a few. The average expatriate may take approximately $300,000 to replace. When we lose one to a sexual-harassment incident, it’s a loss that’s costly.


One question mysteriously looms on the horizon of global business: When the practices and laws of two cultures clash, which will apply? This is a question which, apparently, hasn’t been widely tested. Perhaps it hasn’t even been raised—as some of the organizations we interviewed implied.


It’s difficult to believe that a problem that has been so widespread within the United States isn’t a problem elsewhere, but the complexities of intercultural socialization blur the lines of what is proper and what is improper. It’s HR’s job to understand the associated risks when business personnel travel out of—or into—the United States. We also must make training a priority. If our expatriates don’t even know which side of the road they’ll be driving on when they go abroad on business (or which side of the road their foreign visitors are used to traveling on when they come to the United States), how can we possibly expect them to know what the requirements are regarding intercultural business relationships and the potential for sexually harassing behavior? It’s our job to inform our people. Only then can we be sure that the road to international business is a safe one.


Personnel Journal, April 1996, Vol. 75, No. 4, pp. 91-97.



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