Chapter 2 Managing and Organising the Human Resources. STUDY OBJECTIVES. At the end of this chapter students Will be expected to: Be able to plan fleet staffing needs. Understand performance requirements for fleet personnel Have insight into programmes to encourage workforce diversity.
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STUDY OBJECTIVES At the end of this chapter students Will be expected to: • Be able to plan fleet staffing needs. • Understand performance requirements for fleet personnel • Have insight into programmes to encourage workforce diversity. • Be able to determine the compensation value of the driver position. • Be able to establish a driver compensation programme.
Understand compensation with respect to the marketplace. • Understand pay incentives and the value of nonmonetary factors. • Become well-acquainted with typical transport organisations and structures. • Be able to explain the importance of the management and organisation of transport operations and their employees.
2.1 PLANNING FLEET STAFFING NEEDS 2.1.1 INTRODUCTION • Establishing a fleet staffing plan begins with identifying the appropriate number of people needed to effectively run the fleet operation.
2.1.1 INTRODUCTION cont’ The size and scope of the staff is dependent on: • the type of fleet operation, • the volume of work that it must accommodate, and most importantly, • the value which the fleet holds for the entire business operation.
2.1.1 INTRODUCTION cont’ • The success or failure of any transport operation is largely dependent upon how well it is staffed. • A properly staffed operation can effectively meet all requirements.
2.1.2 POSITION DESCRIPTIONS AND HIRING STANDARDS AND POLICY Every position within the transport function has • (i) a purpose; and • (ii) a set of standards according to which it must operate.
2.1.2 POSITION DESCRIPTIONS AND HIRING STANDARDS AND POLICY cont’ • The fleet staffing plan begins with the creation of a job description that clearly identifies the fleet staffing needs. • It is supported by a set of standards that qualifies an individual for the job.
2.1.2 POSITION DESCRIPTIONS AND HIRING STANDARDS AND POLICY cont’ • BIG ISSUE: adjustment of the workforce to accommodate fluctuations in business. • In many operations, this fluctuation creates a demand for staff that far exceeds the existing staff establishment and at times may seem impossible to fulfill.
2.1.2 POSITION DESCRIPTIONS AND HIRING STANDARDS AND POLICY cont’ • The key factor when making adjustments for additional staffing requirements is to plan ahead, • E.G. by developing a fleet staffing contingency plan. This contingency plan should identify: • The immediate staffing required during normal business periods.
2.1.2 POSITION DESCRIPTIONS AND HIRING STANDARDS AND POLICY cont’ • The anticipated staffing required during heavy business periods and during slow business periods. • The staffing adjustment options available to the fleet. • E.G staffing needs during SA World Cup
2.1.2 POSITION DESCRIPTIONS AND HIRING STANDARDS AND POLICY cont’ Some of the most commonly used options available to accommodate staffing adjustments include the following: • Carrying additional staff to avoid labour shortages. • Planning the operation to cover other activities in the off times.
2.1.2 POSITION DESCRIPTIONS AND HIRING STANDARDS AND POLICY cont’ • Using part-time help. • Using people in businesses where slow business periods are the opposite of those in your operation. • Using temporary help leased or casual employees. – LABOUR BROKERS (TES) • Outsourcing the work.
2.1.2 POSITION DESCRIPTIONS AND HIRING STANDARDS AND POLICY cont’ • One very important item to consider when utilising part-time, casual, leased, or non-company personnel, particularly with drivers, is hours of duty. • While individuals may be off duty from another job, they may be entirely out of available hours to work.
2.1.2 POSITION DESCRIPTIONS AND HIRING STANDARDS AND POLICY cont’ • Although leasing accommodates the immediate need, there are several factors a fleet manager must consider when leasing personnel, such as the fact that leased personnel have no immediate or long-term connection, commitment, or loyalty to the fleet operation.
2.1.3 PERFORMANCE REQUIREMENTS FOR FLEET PERSONNEL • All employees, regardless of their position, have an inherent need to know how they are doing in their work. • Performance evaluation addresses that need
2.1.3 PERFORMANCE REQUIREMENTS FOR FLEET PERSONNEL cont’ • While overall performance of a fleet operation affects everyone and good performance may be a common goal, performance standards and measurements should be unique to each individual job.
2.1.3 PERFORMANCE REQUIREMENTS FOR FLEET PERSONNEL cont’ • Performance evaluation has little value to an employee if that evaluation is never communicated. • One of the most effective methods to communicate performance evaluation is through the use of a formal performance appraisal.
2.1.3 PERFORMANCE REQUIREMENTS FOR FLEET PERSONNEL cont’ The principles behind the performance review are: • To provide a formal method to objectively appraise an employee’s performance. • To measure performance as well as progress against a set of agreed goals or objectives. • To provide a written record of an employees performance that supports salary adjustments, modification of work assignments or responsibilities, promotions, and disciplinary actions.
2.1.3 PERFORMANCE REQUIREMENTS FOR FLEET PERSONNEL cont’ • To provide an opportunity to identify individual career objectives. • To provide a forum for an employee to voice his or her thoughts,
2.1.4 CAREER DEVELOPMENT FOR FLEET PERSONNEL • Every successful company employs talented people, but talent must continually be developed to meet the ever-changing fleet environment. • Career development programmesmust be initiated within a fleet operation to meet the long-term personnel requirements.
2.1.4 CAREER DEVELOPMENT FOR FLEET PERSONNEL cont’ • Employees also need the development of additional skills in order to advance in their work. • Staff needs to be exposed to different skills through training • END END
2.3 COMPENSATION AND THE DRIVER • 2.3.1 DETERMINING COMPENSATION COMPONENTS • Unlike most jobs, the driver position, by the nature of its variable requirements, does not lend itself to a standard format of pay in all situations.
2.3 COMPENSATION AND THE DRIVER cont’ • The best compensation package for a fleet operation is the one with components that recognise the operating variables that are part of the driving position. • Commonly used pay components include: • Pay by the hour • Pay by kilometres • Pay covered by stops
2.3 COMPENSATION AND THE DRIVER cont’ • Pay by weight • Pay by the load transported • Pay as a percentage of the load value • Pay based on a combination of more than one factor
2.3.2 COMPENSATION AND THE MARKETPLACE • Conpensation must also be competitive to the market. • Methods which a fleet manager can use to identify competitive driver compensation, include: • benchmarking, • compensation surveys, and • publications.
Benchmarking means comparing the compensation in one’s own organisation to other fleet operations or the transportation industry in general. • To obtain accurate information with regard to survey contacts, compensation surveys should be sent to the transportation or human resources manager of (i) companies or organisations with fleet operations in the same industry
(ii) companies or organisations with fleet operations located in the same region of the country; and (iii) companies or organisations with similar private or contract fleets and union or non-union affiliations.
2.3.3 PAY INCENTIVES A well-designed pay incentive programme will do the followings: • Recognise productivity or performance that is above expectations. • Provide a continuous monetary benefit to the fleet operation, • Maintain incentive goals that are realistic and achievable. • Allow for adjustments by management when business necessitates change.
2.3.3 PAY INCENTIVES con’t The most commonly used forms of driver pay incentives in fleet operations recognise the following performance areas: • Fuel performance (improved kilometres per litre) • Productivity (kilometres driver, number of deliveries) • Quality of work and customer service • Work safety record (number of work days lost) • Vehicle accident record, preventable accident record
2.3.3 PAY INCENTIVES con’t • The criteria set for the performance areas should be unique to the individual needs of the fleet operation. • lncentive pay is based on the achieved savings resulting from performance.
2.3.4 THE VALUE OF NON-MONETARY FACTORS • Pay is not the only factor a driver considers when accepting a job. • The following aspects represent some of the most effective non-monetary factors that private fleets employ today to provide value for drivers:
2.3.4 THE VALUE OF NON-MONETARY FACTORS cont’ effective non-monetary factors cont’: Equipment • Drivers have input on equipment specifications • Equipment is new • Equipment is clean and well-maintained • Equipment is safe • Equipment is assigned to the individual driver
2.3.4 THE VALUE OF NON-MONETARY FACTORS cont’ • effective non-monetary factors cont’: Dispatch schedules • Schedules are compatible with family lifestyles • Schedules recognise time off. • Hours of service regulations are not compromised
2.3.4 THE VALUE OF NON-MONETARY FACTORS cont’ • effective non-monetary factors cont’: Work environment • Customers treat drivers with respect • Company employees treat drivers with respect • Safety in the workplace takes top priority
2.3.4 THE VALUE OF NON-MONETARY FACTORS cont’ • effective non-monetary factors cont’: Management style • Management listens to their drivers • Management responds to driver concerns • Management maintains high ethical standards Recognition • Drivers are recognised and appreciated for the work which they perform
2.3.4 THE VALUE OF NON-MONETARY FACTORS cont’ • The hidden value of non-monetary factors can be summed up by the quality of the work environment.
2.3.4 THE VALUE OF NON-MONETARY FACTORS cont’ Motivational factors include: • A sense of achievement – make a diff • Sense of recognition – pat on back • Sense of satisfaction – variety, creativity • Sense of self-Worth – management values them • Sense of advancement
2.3.4 THE VALUE OF NON-MONETARY FACTORS cont’ • Employee turnover are very common – expensive in terms of money and in terms of time and effort • The company must do all that is possible to retain the quality employees who are so integral to a successful and profitable company.
2.3.4 THE VALUE OF NON-MONETARY FACTORS cont’ • Recognition and reward programmesare highly cost-effective methods of retaining good employees and motivating workers toward a higher level of performance. • Transport managers must therefore spend time on managing their workers, helping to provide recognition and a sense of involvement for all.
2.4 DRIVER CONTROL 2.4.1 INTRODUCTION The driver in any freight or passenger transport organisation is one of the key elements in the successful operation thereof. • if inadequate attention is paid to driver recruitment, selection, training and control, enormous problems will be experienced in the areas of: • vehicle maintenance costs, • vehicle utilisation, • vehicle operating costs, etc.
The driver is in control of an expensive asset often costing in excess of R900 000, or he is in charge of a passenger vehicle (bus) carrying 80 people who have entrusted their lives to his hands, eyes, ears, and reflexes. • Driver is in charge of a load costing many times more than the vehicle he is driving.
He is also usually driving on public roads where he is in daily contact with other road users. • The manner in which he drives the vehicle will affect its expected economic life as well as the total operating costs of the vehicle and fleet. • To ignore the driver in organisational planning and control will prove to be disastrous.
The driving habits of a driver have a very important effect on: • fuel consumption, • clutch, brake and tyre wear, as well as accidents and • the economic life of a vehicle.
2.4.2 RECRUITMENT OF DRIVERS • Some organisations has the policy to recruit only people who have had no previous driving experience. • WHY??????
2.4.2 RECRUITMENT OF DRIVERS cont’ • The rationale behind this method is that when previously qualified drivers are selected and employed, they will continue practising bad driving habits, previously learned, to the detriment of the organisation. • To teach these drivers to forget about these habits is difficult.
2.4.2 RECRUITMENT OF DRIVERS cont’ • In most cases however, previously qualified drivers are recruited. • Larger organisations test the driver’s ability to drive vehicles as well as determine whether the driver will fit in with the organisational culture.