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PARTS EXCELLENCE

PERSONNEL
DEVELOPMENT

General Motors Dealer Development Systems

PA RTS EXC E L L E N C E

Reference Library

This reference library is to be used in conjunction with and is complementary to


the Service and Parts Excellence Standards Manual. Essentially this library is a
collection of Dealership management and operating ideas gathered world-wide.
If, after reviewing a specific standard you have areas in your Dealership
organisation that fall into the needs improvement category, then there will be
ideas in this library that may help you solve your problems.
While the reference libraries contain hundreds of good ideas, it should never be
assumed that the ideas and examples presented are the only or desired means of
solving your problem. You may have some better ideas to achieve a desired
operating standard. This reference library provides How to make it happen
guidance.
The contents of this reference library contain the Parts Excellence area of:

PERSONNEL DEVELOPMENT

2001 General Motors Middle East Operations


This publication is copyright. Other than for the purpose and subject to the
conditions prescribed under the Copyright Act no part of it may be
reproduced by any means without prior written permission. Enquiries should
be addressed to General Motors Middle East.

General Motors Dealer Development Systems

PERSONNEL DEV E LO P M E N T

Module Five - Table of Contents


TITLE

PAGE

Preface
Table of Contents
List of Documents

i-ii
iii-iv
v

CERTIFICATION

Dealer Certification Review - Module No.5

1-4

INTRODUCTION
System Overviews
Forms and Documents
Policies & Procedures Manual
Employee Handbook

5
8
9
15

JOB DESCRIPTION

Evaluators
Format
Support
Commitment to Process
Decision Grid

19
20
27
29
30

HIRING
Evaluators
Policies
Orientation
Administration
Decision Grid

31
32
38
39
40

PERFORMANCE EVALUATION
Evaluators
Review
Contents
Excellence Report
Personnel File

41
42
44
51
52

COMPENSATION PLAN
Evaluators
Plan
Administration
Decision Grid

55
56
62
68

COMMUNICATION

Evaluators
Introduction
Meetings
Financial Results
Departmental Objectives
Telephone

69
70
72
74
75
77

iii

PA RTS EXC E L L E N C E

Module Five - Table of Contents


TITLE

PAGE

TRAINING & DEVELOPMENT

Evaluators
Plan
Resources
Evaluation

79
80
83
86

TERMINATION

Evaluators
Policy
Disciplinary
Leave of Absence

87
88
91
92

APPENDIX A
Parts Department
Personnel Forms

APPENDIX B
Employee Handbook

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PERSONNEL DEV E LO P M E N T

Module Five - List of Documents


TITLE

PAGE

System Overview
Job Description
Job Description Review
Job Description Observation Form
Hiring Process Flow Chart
Performance Evaluation Observation Distortions to Guard Against
Parts Department Dealerships Hub
Training Materials Catalogue Card

7
24
26
28
33
47
71
83

PA RTS EXC E L L E N C E

THIS PAGE INTENTIONALLY LEFT BLANK

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PERSONNEL DEV E LO P M E N T

Introduction - System Overview

PURPOSE
The purpose of this Module is to establish:
An understanding of the basic concepts pertaining to human
resource management
A positive attitude towards Dealership employees
Principles and techniques for proper handling and motivation
The effective use of forms and records to properly document an
employees activities and performance

REALISTIC BENEFITS
Properly administering Personnel Development will result in:

Systematic procedures
Fair, consistent and objective treatment of personnel
Motivation of employees
Greater efficiency
Greater productivity
Fulfilment of legal requirements
Improved intradepartmental relations
Improved interdepartmental relations
Improved customer satisfaction

PERSONNEL ARE VITAL


The true distinction between yourself and the competition is your personnel.
Location, facility, product, promotion and pricing are all important factors. But,
if customers are not pleased with the service and treatment provided by your
people, they are not likely to return. And repeat business is what successful
Dealerships are built upon.
Nearly every transaction in the Dealership is linked either directly or indirectly
to the Parts Departments employees. The Sales Department relies upon good
service being provided during the warranty period for repeat buyers. The Service
Department in turn relies upon the Parts Department for the availability of parts
to repair the vehicles. The Used Car Department also requires parts availability
for reconditioning. The Finance and Insurance Department sells add-ons
requiring availability and service. The Body Shop needs sheet metal. Truly, the
Parts Department is the hub connecting the various spokes of the Dealership and
the employees are the bearings that make the wheel turn.

PA RTS EXC E L L E N C E

Introduction - System Overview

INTRODUCTION TO PERSONNEL
MANAGEMENT SYSTEM
An overview of the entire Personnel Management System is shown on the next
page. In order to present a logical review of the materials, the system will be
discussed in eight major sections:
Policies and Procedures
Job Descriptions
Hiring
Performance Evaluation
Compensation Plans
Communications
Training & Development
Termination
Additionally, each section has a corresponding appendix. These appendices
include sample policies, documents and forms for your adaptation and use.

PERSONNEL DEV E LO P M E N T

Introduction - System Overview

PA RTS EXC E L L E N C E

Introduction - Forms and Documents

Good management depends on accurate and sufficient information. The process


for accumulating and recording personnel related activities and performance
results begins with proper documentation. The Parts Manager should determine
which activities and results need to be recorded. While the types of forms may
vary among Dealerships, the basic requirements of the forms and documents are
the same from Dealership to Dealership.
Forms and documents should :
Provide the Parts Manager with a complete history including the
performance results of each individual employee
Be used as a tool to help evaluate personnel and determine advancement,
promotion, transfer, training needs, probation or termination
Be accurate, fair, consistent and thoughtfully prepared
Forms and documents needed, include:

Organisational Chart
Job Descriptions
Application for Employment
Job Interview Report
Reference Check
Employment Notice
Performance Evaluation
Excellence Report
Attendance Record
Payroll Change Notice
Personal Compensation Summary
Meeting Agenda
Skills Inventory
Training and Development Plan
Training Evaluation
Termination Notice
Exit Interview
Probationary Notice
Employee Reprimand
Accident Report
Leave of Absence Request
Employee Handbook

An example of the Employee Handbook by be found in Appendix B. Examples


of all other forms and documents listed may be found in Appendix A.

PERSONNEL DEV E LO P M E N T

Introduction
- Policies and Procedures Manual
MANUAL
A Dealership should maintain a Policies and Procedures Manual. The primary
reason is that employees are more productive when treated fairly and
consistently. Fair and consistent treatment is more readily achievable when
policies are written there is less chance of misinterpretation or
misunderstanding.
Additional reasons that a Policies and Procedures Manual is valuable include:

Permanent reference lessening individual interpretation


Clearer definition providing greater consistency
Conformity to all legal requirements, lessening chances of lawsuits
More comprehensive, lessening chances of loopholes

Appendix A includes numerous forms that can form the nucleus for a Policies
and Procedures Manual when verbage is included which specifies usage and
policy. The following discussion centres on the background for Policies and
Procedures.

RECRUITING
Guidelines for management to follow concerning recruitment procedures need
to be outlined. This will ensure consistency between departments and reduce
chances of discrimination. The purpose of recruitment is to hire the most
qualified candidate. Only qualifications related to job performance should be
used in the selection process. Qualifications to be considered should include:
education, experience, training and aptitude.
Employment applications should be completed by every job applicant. This will
ensure comprehensive gathering of data and provide points of discussion for the
interview.

PA RTS EXC E L L E N C E

Introduction
- Policies and Procedures Manual
PERFORMANCE EVALUATION
Every employee has three basic questions that they want and need answered to
maintain motivation. They are: what is expected, how much and by when, and
how am I doing? The purpose of any performance evaluation is to provide the
answers to these questions. Performance evaluations are not intended as a
substitution of immediate feedback, but are rather a forum where the employee
and supervisor can jointly devise a plan for improvement Performance evaluation
results should not come as a surprise to the employee.
The Dealerships Policies and Procedures Manual may include specific policies
related to the content and methodology of how performance evaluations should
be conducted.
Content may include:
Review of job description
Review of job standards
Review of policies and procedures
Review of customer handling
Review of interdepartmental relations
Review of intradepartmental relations
Review of training completed or required
Methodology may include:
Who should conduct evaluation process
Specific training or experience necessary for evaluation
Review of employees personnel records
Constructive and positive atmosphere
Balance between positive and negative feedback
A performance improvement plan if required, includes:
Specific action or results to be achieved
Managements support activities
Employees commitment to participation
Establishment of target dates

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PERSONNEL DEV E LO P M E N T

Introduction
- Policies and Procedures Manual
CONDITIONS OF TERMINATION
Most experts in the field of human resources agree that there should be only two
reasons for termination of employment. The two reasons are violation of
company policies and procedures and job performance below standard.
Standards of job performance will be discussed later. Specific rules must be
established concerning the employees behaviour and included in the Policies and
Procedures Manual of the Dealership. These rules should also include the
consequences for their violation. Consequences should vary dependent upon the
degree of seriousness. They might include:

Verbal reprimand
Written reprimand
Suspension without pay
Specific probationary period; second offence within this period
results in termination
Immediate termination

Employee rules to be considered might include:

Attendance and tardiness


Physical misconduct including fighting as well as verbal abuse
Treatment and handling of customers
Unapproved solicitations on behalf of self or charitable
organisations
Gambling or conducting betting pools
Misuse or mistreatment of company property
Use of safety equipment and adherence to safety procedures
Alcohol or drug abuse
Falsification of company records or documents
Theft
Insubordination
Appearance and uniform code

Whatever the rules or consequences, the objective is to enforce them in a fair and
consistent manner. Remember, termination can occur for reasons other than
violation of company policies or procedures, or below job performance
standards, such as:
Layoff
Medical disability
Retirement

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PA RTS EXC E L L E N C E

Introduction
- Policies and Procedures Manual
For these reasons, take into consideration the economic factors and procedural
steps that may be applicable:

Required notice
Appeals (if applicable)
Eligibility for holiday pay
Eligibility for bonus or incentive
Continued insurance coverage
Recall procedures from layoff or suspension

The actual termination should be conducted in an organised fashion. The main


objective is to finalise the paperwork and escort the employee off the premises
without requiring a secondary visitation to the Dealership. The steps to be
followed at the time of termination include:

Explanation of termination decision


Explanation of effective date of termination
Explanation of benefits disposition
Notification to benefit carriers
Repossession of company property
Collection of employee receivables
Exit interview

The exit interview is a useful management tool. Previously unspoken conflicts


and job interferences can be uncovered. It is also an excellent opportunity to
explain benefits and entitlements to the terminated employee, and to review the
circumstances that led to ultimate termination, allowing management to address
this situation if necessar y.

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PERSONNEL DEV E LO P M E N T

Introduction
- Policies and Procedures Manual
ADVANCEMENT AND PROMOTION
The Dealerships policy on advancement and promotion is intended to not only
clarify the conditions for which either can be achieved, but as employee
motivation. Once the mystery is removed, employees will strive for advancement
to the next level of pay or promotion to a higher level of responsibility.
The policy should include managements commitment to promotion from
within and commitment to pay for performance. Better candidates are also
attracted by continuous training programmes conducted both in-house and/or
through external programmes.
All advancement and promotion should be tied to the Dealerships performance
evaluation system. This promotes fairness, consistency, and objectivity. Three
factors that advancement and promotion should be based upon are: evaluation
rating, eligibility, and time/grade. Once a determination has been made by the
immediate supervisor to advance or promote an employee, the next level of
management should review and approve the decision.

COMPENSATION
Two basic precepts should be followed to generate the maximum return. Precept
one is to pay for performance. Precept two is that compensation should be tied
to the overall objectives of the business.
Pay for performance can be achieved by tying merit increases to an employees
performance evaluation. If the performance evaluation indicates above standard
performance, then a merit increase is warranted. The size of the merit increase
should be in direct proportion to the degree that performance is above the
standard.
Tying compensation to the overall objectives of the Dealership can be
accomplished through a commission structure. The process starts by first
determining the amount of pay a specific job classification, at a standard level of
performance, should be compensated, taking into account the following factors:

Going rate
Job to be done
People availability
Working conditions
Employees values
Affordability

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PA RTS EXC E L L E N C E

Introduction
- Policies and Procedures Manual
COMPENSATION AND BENEFITS
As with all employee records, compensation records should be maintained
conscientiously. This includes records documenting commissions paid and time
clock cards.
To many employees, benefits are as important as compensation. For this reason,
it is important to detail the benefits offered in a Policies and Procedures Manual,
as well as an Employee Handbook. Included in the description and
administration of benefits should be the economic value and a statement that it
is viewed by management as a part of the total compensation package.
Typical benefits offered include:
Paid Holidays (personal, government and religious)
Paid Personal Time off
Funerals
Pregnancy
Weddings
Graduations
Military commitments

Medical Insurance
Disability Insurance
Life Insurance
Retirement Plan
Discounts on Products and Services
Tuition Reimbursement

Each of these various benefits should have detailed explanations concerning


eligibility, extent of coverages, and employee contributions (if any). Other
benefits might include profit sharing, and service awards.

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PERSONNEL DEV E LO P M E N T

Introduction
- Employee Handbook
The Employee Handbook is intended to be a condensed version of the Policies
and Procedures Manual. In the Handbook, management can outline both the
employees privileges and responsibilities. The Handbook is an integral part of
the orientation process. It provides a syllabus for the immediate supervisor
during orientation, and becomes a reference document for the employee once
actively employed.
Appendix B provides an example of an Employee Handbook. It is a sample of an
Employee Handbook from an actual Dealership. The text is this Module goes
into more detail than the example provides.

COMPENSATION AND MERIT


INCREASES
References to compensation and merit increase should outline the following
subjects:
Scheduled pay periods
Overtime and premium policies
Commissions or incentives paid
Job classification pay scales
Pay increases (general, merit, promotional)
Employee advances and repayment
Expense reimbursement policy

BENEFITS AVAILABILITY AND


ELIGIBILITY
References to benefits availability and eligibility should outline the following
subjects and description:
Paid Holidays (personal, government and religious)
Holidays observed by Dealership
Policy regarding religious holidays
Pay for work during personal holiday time
Eligibility
Duration
Carry-over and/or pay in lieu of holiday (if permitted)
Paid Personal Time Off
Duration
Policy concerning with or without pay
Family relationship (funerals, weddings, graduations)
Frequency
Policy regarding extended leaves of absence (pregnancy, educational,
military, or medical)

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PA RTS EXC E L L E N C E

Introduction - Employee Handbook

Medical Insurance/Disability Insurance/Life Insurance


Eligibility
Employee contributions towards premiums
Coverage of family members
Maximum limits of coverage
Always refer employee to appropriate brochure provided by carrier for
detailed explanation of benefits
Retirement Plan
Length of service
Payment amount based upon length of service and job classification
Discounts on Products and Services
Eligibility
Products and services included
Use of company property (vehicles, repair facilities)
Tuition Reimbursement
Eligibility
Eligibility of courses
Conditions of reimbursement

SHOP RULES
Shop rules should be included as part of an employees job responsibilities. They
are intended not to be a restriction as much as the Golden Rule. In other
words, this is what any employee would expect of his peers, which enhances the
working environment for all.
Shop rules generally cover the following topics:

Attendance and tardiness


Use of safety equipment and following established safety procedures
Smoking restrictions
Use and care of company property (vehicles, supplies, telephones)
Treatment and handling of customers
Housekeeping
Personal status changes (marital, dependants, address, telephone number)
Solicitation
Employee receivables

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PERSONNEL DEV E LO P M E N T

Introduction - Employee Handbook

Shop rules that have a serious consequence if violated, such as termination,


should be emphasised. They include:

Falsification of company records or documents


Alcohol or drug abuse
Theft
Insubordination
Gambling or conducting betting pools
Physical misconduct, including fighting as well as verbal abuse
Sabotage

As mentioned earlier in the discussion of Policies and Procedures, the


consequences should be clearly stated. The consequences may vary depending
upon the degree of seriousness. They might include:
Verbal reprimand
Written reprimand
Suspension without pay
Specific probationary period, second offence within this period results in
termination
Immediate termination

APPEARANCE AND UNIFORM CODE


The dress and appearance should relate to the job being done, and whether or
not the employee comes into contact with the customer. Many Dealerships find
it beneficial to provide uniforms to the workforce. This gives the staff a
professional image and eliminates inconsistency or ambiguity concerning
appropriate attire.

CUSTOMER RELATIONS
Customer Relations is intended to emphasise the importance of the customer to
the survival of the Dealership. And, without repeat customers, the Dealership
will not grow and prosper. Customer satisfaction is the responsibility of all
employees, whether or not they come into direct contact with the customer. The
support personnel have just as much impact as the salesperson or technician. The
following points should be addressed:
Individual contributions comprise the customers total dealership
experience
Customer complaint procedure
Recheck and verify data when in doubt
Accuracy generates satisfaction and efficiency
Treat customers courteously

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PA RTS EXC E L L E N C E

Introduction - Employee Handbook

Direct customers to the appropriate area or personnel when necessary


Be helpful, do not treat customers as interruptions
Show appreciation, say thank you
Remember, they provide your pay cheque

ORGANISATION OF HANDBOOK
The preceding explanation has outlined the specific information that should be
included in an Employee Handbook. In regard to its composition, it is further
recommended that it be organised as follows:

Welcoming letter (from Dealer or General Manager)


Table of Contents (for ease of reference)
History and mission statement of company
Contents (as previously described)
Employee signature (verification of receipt)

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PERSONNEL DEV E LO P M E N T

Job Description - Evaluators

QUALIFIER
FORMAT

SUPPORT

COMMITMENT
TO PROCESS

DEALER ACTION

VALUE

There is a written Job Description for


each job classification within the Parts
Department
Each Job Description contains job
responsibilities, standards of performance,
and reporting relationships
Every employee receives a copy of their
Job Description
Job Descriptions are reviewed annually
with each employee and updated as
necessary
Job Observation forms are used to
develop and update Job Descriptions as
needed
Job Descriptions are used in the
recruiting, selection, and hiring process
Job Descriptions are used to identify
job advancement opportunities

Assessment Score (100 points possible)


Certification requires a score of 80 or above

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15

15
15

15

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PA RTS EXC E L L E N C E

Job Description - Format

PURPOSE
The Parts Manager should establish the employees duties and use formal,
written methods to evaluate their performance. The Parts Department
employees Job Description should clearly define their duties, the expectations
for fulfilling those duties, and the methods by which evaluations will be made.
In other words, each person must know what they are to do, what the results of
their work should be, and how supervisory personnel will review those results.
The Job Description is a complete, realistic statement of an employees
responsibilities. The Description must be clearly written so that the meaning is
the same to both the employee and the supervisor. Thus, the words must be clear,
concise and fully understood.
A Job Description differs from a Job Classification. Job Classification includes
the title and level of the job. The level ranks a job relative to other jobs. The Job
Description explains the responsibilities.
When the Job Descriptions are prepared, their content and intent should be
discussed with the employees for their input and consensus. New employees
should have Job Descriptions explained to them during orientation. All
employees should know what their Job Descriptions require of them. Supervisors
should assure that this is so by discussing and clarifying each employees Job
Description with them.

PREPARING A JOB DESCRIPTION


Job Descriptions are important to a smoothly operating Parts Department.
Clearly written, accurate, realistic and complete Job Descriptions provide a
working basis for both employee and supervisor, create confidence and fairness
between them, and organise the Departments work. Suggestions for preparing
Job Descriptions are as follows:
Step 1
List all the job tasks to be performed for each position. If no formalised task
form is acceptable, prepare a list of tasks by tracking everything done for a
month. Each employee may be asked to list their job tasks. Be sure to
include occasional jobs (such as annual inventory, ordering supplies,
running errands, etc.) so that nothing is forgotten
Step 2
Review the lists for completeness. Add, delete, or alter as necessary. Have
others look at the changing lists. It is likely that each reviewer will think of
another task which was overlooked

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PERSONNEL DEV E LO P M E N T

Job Description - Format

Step 3
Review any proposed changes with the employee involved. Make sure the
new Job Description fits the employees working habits and responsibilities
or, if a change in routine is required, that the employee is clearly aware of
the new expectations
Step 4
Consider each of the critical uses for properly prepared Job Descriptions:
Establishing a basis for compensation which may also be used to justify
differences in amount based upon responsibilities, capabilities, or
proficiencies
Organising the jobs in the Department assures that every necessary
duty is assigned but not duplicated, and that all Department duties are
logically accomplished
Helping employees understand their positions in the Department
clarifies reporting relationships so that both those supervising and those
supervised are fully aware of requirements
Evaluating performance is simplified when Job Descriptions
thoroughly describe expectations in a measurable way. Employee reviews
can then become a discussion of outcomes, not an argument about
processes. Both supervisor and employee are working together for
consistent improvement in task performance
Orienting new employees is aided because the Job Description
provides a format for describing tasks that the new employee can study.
For this reason alone, be sure that Job Descriptions are easy to understand
Reviewing Department functions helps both the supervisors and the
Dealer assess how well employees are performing and how adequately this
important work of the Department is being accomplished

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PA RTS EXC E L L E N C E

Job Description - Format

Step 5
A complete Job Description should contain;
Position Title (using a proper and descriptive title)
Purpose stating in a few words the overall function of the position
Relationships defined by briefly identifying normal reporting and
working assignments; listing (by name) those to whom reporting and
supervisory roles are made
Minimum qualifications or prerequisites for the particular job are
outlined as capabilities. In many cases the differences in these
qualifications justify differences in compensation, particularly when job
titles are the same, but task capabilities may be far more sophisticated for
one Job Description than for another
Tasks are described briefly as duties and responsibilities. These should be
determined from the lists prepared in Steps 1 and 2
A final section should describe the limits of an employees actions as well
as provide the authority for the person to act within the limits prescribed.
Combined with this should be precise, measurable methods for
evaluating results. Wherever possible, these results should be prepared in
terms of agreed upon outcomes, approved plans, programmes or budgets
that apply to the job. These accountability factors form the basis upon
which the immediate supervisor evaluates performance
Step 6
After the preliminary Job Description has been prepared, discuss it with the
employee for which it was written. Confirm the expectations with both the
employee and the supervisor. Clarify contents; reach agreement. Alter the
Job Description as necessary to assure the Parts Department and the
Dealership, as well as the employee, are receiving fair, reasonable and
equitable treatment
Step 7
As tasks in the Parts Department change, or new titles are developed, the
Job Description should reflect what the employee actually does. Properly
written, a Job Description gives the employee a sense of belonging, control,
and purpose and a feeling that supervision is equitable

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PERSONNEL DEV E LO P M E N T

Job Description - Format

JOB DESCRIPTION CONTENTS


Each Job Description should contain job responsibilities, standards of
performance, and reporting relationships. These requirements are minimal.
Additional contents, as stated in Step 5 of Preparing a Job Description, might
include:
Position title
Purpose
Qualifications or prerequisites
Limits of authority
Located on the following page is a sample Job Description format.
Sample Job Descriptions can be found in Appendix A.

JOB DESCRIPTION EMPLOYEE COPY


Each employee should be provided a copy of their individual Job Description.
This is important since a Job Description will answer three key questions that all
employees have:
What is expected?
How much and when?
How am I doing?
The Job Description document alone will answer the first two questions, the
third question is answered at the time of the employees performance review. At
that time the actual results are compared to the established standards of
performance contained in the Job Description.
Prior to the employees annual performance review, or any time in between, the
employee is encouraged to approach management to notify them of any changes.
These changes might entail:

Added or shifted responsibilities


Changes in operating procedure
Changes in standards of performance
Changes in reporting relationships

Not only will a copy to the employee provide direction and a sense of belonging,
but it will also provide management an assessment tool and increase
Departmental efficiencies.

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PA RTS EXC E L L E N C E

Job Description - Format

JOB DESCRIPTION
PREPARED BY

(TITLE)
DEPARTMENT

Functions/Purpose

DATE

Responsibilities and Authority (Contd)

Responsibilities and Authority

Relationships

Standards of Performance

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PERSONNEL DEV E LO P M E N T

Job Description - Format

JOB DESCRIPTION EMPLOYEE REVIEW


The Job Description should be reviewed annually with every employee and
updated as necessary. As stated earlier, this allows employees direct feedback to
management concerning any changes in their jobs. This feedback will help
management eliminate any overlapping or gaps of job tasks, plus improve the
performance evaluation process. Discussions can be focused on performance
versus standards instead of disagreements regarding assigned tasks.
The process of review can be accomplished in one of three ways. First, when a
job change has occurred. Second, during a specific time period which
management has assigned. This possibly is done simultaneously for all job
classifications during a slow period. Third, just prior to the employees annual
performance evaluation.
The first method is recommended since it places the burden on the employee,
who is the closest to the job, and because changes occur sporadically. Located on
the following page is a sample Job Description Review Form.

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PA RTS EXC E L L E N C E

Job Description - Format

JOB DESCRIPTION REVIEW


REVIEWED BY

(TITLE)
DEPARTMENT

Responsibilities Added

Responsibilities Deleted

Authority Added

Authority Deleted

Standards Increased

Standards Decreased

Training Needed

Job Interferences Experienced

Special Accomplishments

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DATE

PERSONNEL DEV E LO P M E N T

Job Description - Support

JOB DESCRIPTION OBSERVATION


FORMS
The responsibility for developing and updating of Job Descriptions lies with
management. While the employee can make significant contributions to the
updating process, the final completed document must be determined by
management. The most difficult task is the origination of the initial Job
Description document. While samples can be found in the appendices, each
Dealership will probably find it necessary to customise their own Job
Descriptions.
If there is a current Job Description, it will provide a good working basis from
which to begin, even though it may be out-of-date or not the format you are
intending to use. Once you have an existing copy, or at least an outline of areas
to be observed, you can begin gathering data by observing the job while it is
being done.
The advantages of direct observation include: first hand information concerning
working conditions, sequences, equipment used, and working relationships.
It is recommended that the observation process be used in the development of
Job Descriptions and every other year thereafter for updating. Located on the
following page is a sample Job Description Observation Form.

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PA RTS EXC E L L E N C E

Job Description - Support

JOB DESCRIPTION OBSERVATION FORM


OBSERVED BY

(TITLE)
DEPARTMENT

DATE

TASK

What does the employee do?

Who or what else is involved?

What equipment/document is used?

Describe sequences followed

Standards Increased
Be sure to tell employee(s) why you are observing them and ask them to perform their jobs in
a normal manner. If the job involves more than one task or responsibility, use a separate sheet
for each.

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PERSONNEL DEV E LO P M E N T

Job Description - Commitment to Process

JOB DESCRIPTION USES


Job Descriptions should be used as a guide in the following processes:
Recruiting
Before an advertisement is placed, examine the Job Description for the
position to be filled. The Job Description contains a listing of
responsibilities and activities that must be performed. This information will
help determine the necessary qualifications and experience that is desired.
Using this information to prepare advertisements or job postings will
permit an accurate and precise description of the qualifications you seek.
Selection
As candidates present their credentials for the job, their individual
qualifications should be measured against what is outlined in the Job
Description.
Hiring
During the initial contact, most job applicants will want to know
something about the job. Effective interviews rely on the Job Description
as the basis for this explanation. Many skilled interviewers review a copy of
the Job Description with the applicants.
Job Descriptions should be used to identify job advancement opportunities. A
good way to develop loyal dedicated employees is to provide opportunities for
them to develop skills and to grow while on the job. Management can use the
Job Description to identify and provide advancement opportunities.
Assessing potential candidates for a promotion should begin with a Job
Description. Comparison of the responsibilities and standards of the present job
classification to those of the next level will indicate qualifications, as well as need
for further training and/or experience.

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PA RTS EXC E L L E N C E

Job Description - Decision Grid

RESPONSIBILITIES
EXPECTATION (Who)

RESPONSE (What)

GENERAL
MANAGER

PARTS
MANAGER

EMPLOYEES

Review and approve all completed Job


Descriptions
Complete a Job Description for the Parts
Manager position
Decide on basis for Standards of
Performance
Complete a Job Description for all Parts
Department positions
A completed Job Description should
include:
Functions to be performed
Level of responsibility and authority
Relationships (reporting structures)
Standards of performance
Review Job Descriptions with employees
Give open input as to completed Job
Description

30

PERSONNEL DEV E LO P M E N T

Hiring - Evaluators

QUALIFIER
POLICIES

ORIENTATION

ADMINISTRATION

EMPLOYMENT FILES

DEALER ACTION

VALUE

Written policies relating to hiring practices


including:
Recruitment
Qualifications
Interview Process
Assessment
Selection Process

8
8
8
8
8

Hiring decisions are accomplished in


accordance with written policies

10

New employees attend an orientation which


includes:
Job Description
Explanation of Dealerships policies
Employee Handbook

10
10
10

Persons responsible for hiring process


should be qualified, and authorised to
administer Dealerships policies

10

All job applications and interview


reports are kept on file for a minimum
of one year

10

Assessment Score (100 points possible)


Certification requires a score of 80 or above

31

PA RTS EXC E L L E N C E

Hiring - Policies

NEED OF HIRING POLICIES


People are a critical factor to the success of any business. People are the key to
improving profitability and customer satisfaction. For these reasons it is
absolutely necessary to the Dealerships success to ensure that the best possible
candidates are recruited and hired.
To accomplish this, the Dealership must have written policies that cover hiring
new employees. The goal of these policies is the selection of the candidate that
is best qualified for the job. Selection of a new employee must be based on
matching a job candidates experience, education, and job skills to the
qualifications necessary for a specific job.
The hiring process includes several steps. Shown on the adjacent page is a flow
chart outlining these steps.

RECRUITMENT
Recruitment is the process by which job candidates are sought and encouraged
to apply for the vacant position. The Dealership has available the following
sources:

In-house promotion or transfer


Unsolicited applications
Private/Government employment applications
Advertising in newspapers, trade journals, magazines

Educational institutions such as trade or technical schools, junior or


community colleges, senior colleges, and high schools
Recommendations/referrals from employees, personal contacts, business
associates, wholesale contacts
Employees of independent garages or other Dealerships
Government aided programmes
The policy regarding recruitment should emphatically state that in-house
promotions or transfers, when feasible, are the preferred method of recruitment.
This should be accomplished by first comparing the job qualifications of a
vacant position with the employees performance evaluations. Those employees
who have shown excellent performance ratings and have the necessary
qualifications should be given first consideration. If review of employees
performance evaluations do not indicate employees possessing the necessary
qualifications, the job should be posted.

32

PERSONNEL DEV E LO P M E N T

Hiring - Policies

HIRING PROCESS Flow Chart


Opening
Occurs

Hiring Decision
is made

Recruitment

In-House

Review Of
Performance
Evaluators

Outside

Posting

One or More
of Seven Sources

Preliminary Screening of
Applications and Self-Nominees

Initial Interview
Selection
Process
Verification of Data

Notification of Decline

Second Interview

Assessment

Orientation
Process

Notification of Decline

Notification of Decline

33

PA RTS EXC E L L E N C E

Hiring - Policies

The posting of a job opening will allow the employees to self-nominate. This is
critical for two reasons:
It is possible that a specific qualification has been overlooked, or acquired
since the employees last performance review
Employees who think they are qualified and are not will be informed of this
fact
Accompanying the job positing should be the method and the contacts name,
address, and telephone number to initiate the process.
Beyond establishing in-house promotion and transfer as the number one source
of recruitment, the remaining sources should be prioritised by management.

QUALIFICATIONS
The qualifications for an open job position should be referred to in the specific
job description. These qualifications are first used in both the posting and
advertisement of the position to be filled. This will discourage unqualified
candidates from applying for the job, making the screening process for
management much simpler.
Secondly, the job qualifications enumerated in the job description will provide
an effective screening device when reviewing job applications. The job
application shown in Appendix A will highlight the following:

General history and background


Foreign language capabilities
Employment experience
Special skills and qualifications
Education and training

Qualifications indicated on the employment application should then be checked


and verified, as well as elaborated upon during the interview process.
NOTE: Positions advertised should not have a qualification that contains
discriminatory bias.

34

PERSONNEL DEV E LO P M E N T

Hiring - Policies

INTERVIEW PROCESS
After recruitment has begun and both self-nominations and job applications are
received, the next step is the interview process. The interview process occurs
twice at a minimum:
Initial Interview
Second Interview
The initial interview is conducted by an experienced member of management.
During this interview, the candidate is queried about data provided on either the
self-nomination or job application. This data relates to general background,
foreign language capabilities, employment experience, special skills and
qualifications, and education and training. In the case of self-nominees, previous
evaluations should also be a topic of discussion.
After the initial interview, the interviewer must make a determination that the
candidate possesses all the necessary qualifications. If not, the candidate should
be notified in writing that he/she is no longer under consideration and why.
If the candidate possesses the necessary qualifications, their job application, or
performance evaluations in the case of self-nominees, should be checked and
verified for completeness and accuracy.
If the candidate is from outside the Dealership there should be a thorough
investigation. Included in Appendix A is a sample telephone reference check.
Not all previous employers will be willing to discuss present or previous
employees. However, these questions must be asked. At a minimum, two key
questions will provide a clue as to the candidates hire ability. They are:
Verification of employment, including dates
Would you rehire? Why or why not?
Be careful to make an objective decision. Sometimes employers will provide
good reference just to unload an employee from their rolls. Other times, a
personality conflict will jade the previous employers response.
Once the job application data has been verified, the candidate should be
contacted for the second interview. The second interview should include the
immediate supervisor, either in a team interview or series of one-on-ones.
During the second interview, feedback from reference checks should be discussed
and elaborated upon. Also, the job description and company policies are
excellent topics for review. The candidate should be provided a clear picture of
the responsibilities and organisation so that they can make an enlightened
decision concerning their career.

35

PA RTS EXC E L L E N C E

Hiring - Policies

A Job Interview Report is located in Appendix A. This form will help the
interviewer with their assessment of the candidate.
At the conclusion of the second interview, the management team should make
the decision as to tendering the candidate an offer of employment. If
management tenders an offer of employment, it should be conditional on the
basis of the candidates ability to pass an assessment.

ASSESSMENT
The assessment process encompasses any testing that the Dealership deems
necessary. Assessment or testing is applicable in three general areas:
Skill
Knowledge
Aptitude
Skills assessment is usually a measurement of ones ability to apply knowledge or
use machines or equipment such as:

Typing
Computer input or accessing
Driving
Calculator or other business machines
Parts catalogues and price schedules

Knowledge assessment is usually a measurement of ones knowledge related to


the job such as:
Parts identification and nomenclature
Documents (Repair Order, Purchase Order, Requisitions, Transportation/
Shortage Claims, Bills of Lading, Invoices, etc.)
Pricing practices
Inventory management
Aptitude assessment is usually a measurement of ones general suitability to
perform within the job situation such as:

Mechanical
Interpersonal relations
Math and number recall
Instruction oriented or self-reliant
Team player or individually motivated

36

PERSONNEL DEV E LO P M E N T

Hiring - Policies

In many situations, testing is not legal unless it is directly related to the job itself,
and validated. Validation is the process by which the assessment has been proven
to be an accurate predictor of the candidates success on the job. If the assessment
is copyrighted, the author should be prepared to substantiate its validation. If the
assessment is internal, management should consult legal counsel before its use.
Whether or not your Dealership uses assessments is a decision that your
management team will have to make. Remember that the intention of any
assessment is to measure a candidates skill, knowledge, or aptitude. This
feedback is then intended to be an indicator of the candidates likelihood of
success.

SELECTION PROCESS
The selection process is not an exact science. However, if the previous steps
outlined are followed, the best decision of who to select for the job will be greatly
enhanced.
Combining all these factors and inputs, the Dealership management team
should be capable of making an enlightened decision.
The written policy related to the selection process should state either the job
titles or individuals responsible for the final decision and the criteria/process to
be used.
In addition to the written policies outlined, specific managers should be assigned
the responsibility of implementation. A singular manager should be appointed
by the Human Resource Manager to oversee the entire process.

37

PA RTS EXC E L L E N C E

Hiring - Orientation

PROCESS
It is suggested the orientation process include the following:
Information about the Dealership history, ownership and organisation
Statement of company policy related to customer satisfaction, quality
control and safety regulations
Information about the Dealerships products
Job responsibilities, duties and working hours
Location of workplace
Compensation and benefit programmes
Introduction to key personnel and tour of facility
Presentation of Employee Handbook
While these are suggested items to be covered by the immediate supervisor
during the orientation process, the following three items are mandatory: Job
Description, explanation of Dealerships policies and procedures and Employee
Handbook.

JOB DESCRIPTION REVIEW


The Job Description has already been covered at great length. It must be
remembered that its value has several implications.
Sample Job Descriptions are located in Appendix A. Whether you use the Job
Descriptions provided, or develop your own, each major category should be
covered in depth.

DEALER POLICIES EXPLANATION


Explanation of the Dealerships policies and procedures at the time of orientation
is your assurance that company/employee relations begin on a solid foundation.
In most instances, these policies are addressed in the Employee Handbook.
However, it is still recommended that company policies be explained separately.

COMMITMENT TO PROCESS
It is imperative that persons administering the hiring process be qualified. It is
recommended that one manager be assigned as the Human Resource Manager
(HRM). His responsibilities would include overseeing all matters concerning
employee relations plus training and coaching other managers administering the

38

PERSONNEL DEV E LO P M E N T

Hiring - Administration

Dealerships policies and procedures. Each new manager should undergo a brief
training session related to employee relations Content of such training should
include:

Recruitment
Hiring
Interview Process
Orientation
Performance Evaluation
Promotion/Transfers
Termination Process

Each of the subject areas should be reviewed in detail including the appropriate
forms and the Dealerships philosophy. When the Human Resource Manager is
confident of a managers ability, the manager would conduct his initial employee
proceedings with HRM observing.
Proper training and orientation of managers plus one key manager assigned as
co-ordinator is the only method available to assure fairness and consistency of
employee relations.

EMPLOYMENT FILES
Records are important because they provide information on which to base
decisions in the future. In the hiring process, records also supply a basis for
explaining or justifying changes that were made.
This can be especially important if candidates who were not selected bring legal
action against the Dealership for violation of rights guaranteed them under the
law.
All records involved in the selection process need to be retained. This should
include:

Resumes
Letters of Application
Written responses to advertisements
Written responses to postings
Job applications
Job Interview Report
Assessment Results

If the candidate is not hired, all information should be kept on file for one year.
If the employee is hired, all information should be made a part of the employees
personnel file.

39

PA RTS EXC E L L E N C E

Hiring - Decision Grid

HIRING
EXPECTATION (Who)

RESPONSE (What)

SOURCES
FOR NEW
EMPLOYEES

MINIMUM JOB
QUALIFICATION

Jobbers, mass merchandisers, automotive


departments and motorcycle shops
Automotive warehouses and outlets
Trade/vocational schools
Manpower development programmes
High school co-operative programmes
Friends of current employees
Employees in other departments
In order to avoid an over abundance of
inquiries and as a preliminary screening
process, minimum job qualifications related
to the actual job description should be
established

40

PERSONNEL DEV E LO P M E N T

Performance Evaluation - Evaluators

QUALIFIER
REVIEW

CONTENTS

DEALER ACTION

VALUE

A written Performance Evaluation is


provided to each employee at least annually

10

The written Performance Evaluation


addresses the following areas:
Responsibilities/Authority
Performance Summary
Performance Rating (per item)
Performance Rating (overall)
Employee Comments
Employee Commitment
Management Comments
Management Commitment

4
4
4
4
4
4
4
4

EXCELLENCE
REPORT

A written Excellence Report is provided


for documentation of employees excellence

PERSONNEL
FILE

An employee Personnel File is maintained


for each employee
The employee Personnel File contains the
following records:
Application for Employment
Job Interview Reports
Reference Checks
Employment Notice
Orientation Checklist
Performance Evaluations
Excellence Reports
Payroll Change Notice
Attendance Records
Leave of Absence Requests
Accident Reports
Employee Reprimand
Termination Notice
Exit Interview

Assessment Score (100 points possible)


Certification requires a score of 80 or above

41

10

3
3
3
3
3
3
3
3
3
3
3
3
3
3

PA RTS EXC E L L E N C E

Performance Evaluation - Review

APPRAISAL PROCESS
Before any action can take place to improve or reward performance, you must
have a base or starting point. That involves observation and keeping records on
actual performance.
Not everything can be recorded. Below are various indicators of performance
that may be applied.

Productivity
Efficiency
Quality of Work
Customer Handling
Sales
Attendance
Work Habits

The process of evaluating performance is simple if performance standards have


been established. These standards are most frequently found in the employees
Job Description. Performance standards can be found in the sample Job
Descriptions located in Appendix A.
Actual performance is measure and compared to standards.
If this comparison reveals that performance is below standard, there can be only
two causes:
Knowing Deficiency
Doing Deficiency
A knowing deficiency infers that the employee does not know what to do or
how to perform the job. A doing deficiency infers that the employee knows
what and how to perform the job, but does not. Corrective action for each is
different.
The remedy for a knowing deficiency may include training, drill, practice, or
a checklist. The remedy for a doing deficiency may include direct feedback,
appropriate rewards and punishment, or removal of job interferences.

42

PERSONNEL DEV E LO P M E N T

Performance Evaluation - Review

If performance is above standard the employee should be rewarded. Rewards


may take several forms such as:

Merit increase
Additional benefits
Promotion or transfer
Added responsibility

Whatever method is chosen, the reward must be perceived as a reward in order


to motivate the recipient. Good performance, unrewarded, will have a negative
effect, causing low morale and declining productivity.
Review and discussion of employees performance should occur a minimum of
once a year. Most Dealerships use the employees anniversary date as the time to
conduct their Performance Evaluation. This distributes the reviews throughout
the year, making it less burdensome on the supervisor.

43

PA RTS EXC E L L E N C E

Performance Evaluation - Contents

IMPORTANCE
The Performance Evaluation is the method by which feedback is provided to the
employee. This feedback should inform the employee as to the quantity and
quality of their work. In the absence of feedback, employees are likely to
continue to perform as they have in the past. Since most employees want to do
a good job, providing feedback will assist both management and the employee to
achieve favourable performance. To provide feedback that is specific, achievable
and time-oriented, it is suggested the following areas be addressed:

Responsibilities/Authority
Performance Summary
Performance Rating (per item)
Performance Rating (overall)
Employee Comments
Employee Commitments
Management Comments
Management commitments

A sample Performance Evaluation is located in Appendix A.

RESPOSIBILITY/AUTHORITY
Performance Appraisal forms should outline a jobs major responsibilities and
authority. These responsibilities and authority describe the primary duties and
other major functions of a position in which an employee is expected to achieve
results. Along with the major responsibilities, the corresponding authority to
accomplish these tasks should be defined.
In order to be effective, these responsibilities and authority should be expressed
objectively, clearly, and concisely; be job centred and output oriented.

44

PERSONNEL DEV E LO P M E N T

Performance Evaluation - Contents

PERFORMANCE SUMMARY
The Performance Summary is where management recapitulates the employees
performance to date. Specific examples drawn from the employees Personnel File
should be cited. Such examples will assure consistency and fairness, as well as
justify the performance rating assigned by the supervisor for specific
responsibility.
Typical Performance Summary references might include:

Customer Letters
Excellence Reports (generated by management)
Attendance Records
Accident Reports
Employee Reprimands
Actual Performance compared to Standards

PERFORMANCE RATING, PER ITEM


The Performance Rating is the grade or relative value assigned to the
responsibility for results achieved. The Performance Rating categories shown in
the sample Performance Evaluation are:

Outstanding (far above standard)


Above Standard
Competent (standard performance)
Needs Slight Improvement
Needs Much Improvement

It should be stressed that the selection of a performance rating must be accurate


and fair. Also the Performance Evaluation should be based on observations of an
employees performance over the entire period under consideration

45

PA RTS EXC E L L E N C E

Performance Evaluation - Contents

PERFORMNCE RATING OVERALL


The overall Performance Rating is the grade or relative value assigned to the total
results achieved. The Performance Rating categories are the same for both (per
item) and (overall). The distinction is that the overall Performance Rating must
take into account a weighted factor for each of the individual responsibilities.
Not all the listed responsibilities have equal importance.
Internally, a problem can exist if the overall Performance Rating is used as a guide
for merit increases. Fairness, consistency and objectivity must be maintained at
all times to maintain its motivational effectiveness.
In rating performance, distortions must be guarded against. These distortions are
shown on the facing page.

46

PERSONNEL DEV E LO P M E N T

Performance Evaluation - Contents

OBSERVATION DISTORTIONS TO GUARD AGAINST


SIMILARITY EFFECT
A tendency to judge favourably those people perceived as similar to the evaluator.
These similarities may be based on physical likeness, educational background,
location of residence, hobbies and interests, and other personal factors. To avoid this
error, evaluate each employee against the performance standards for each major
responsibility. Ask for others opinions about the employees work.
HALO EFFECT
A tendency to judge a person by third party influences such as hearsay, reputation,
or strong positive or negative performance in one area. The halo effect also can be
an inappropriate generalisation about total performance based on one major
responsibility. To avoid the halo effect, evaluate each major responsibility separately
and formulate independent judgements about employees in addition to receiving
counsel from others.
CONTRAST EFFECT
A tendency to evaluate an employee by comparing or contrasting the employee with
another individual. To avoid the contrast effect, evaluate people according to their
major responsibilities and job performance standards. Compare people after, rather
than before, their evaluations.
FIRST IMPRESSION/LAST IMPRESSION EFFECT
A tendency to make an initial favourable or unfavourable judgement about an
employee and then ignore or distort subsequent information so as to support the
initial impression; or a tendency to base an entire evaluation on performance during
the last portion of the evaluation period or on only those major responsibilities with
which the employee is having difficulty. Minimise this effect by keeping accurate
records of employee performance throughout the evaluation period.
NEGATIVE/POSITIVE LENIENCY EFFECT
A tendency to be either too easy or too hard on employees based on comparison or
contrast with others or with predetermined beliefs and values about general
employee capabilities. Avoid leniency effects by evaluating employees against all
major responsibilities and job performance standards.
CENTRAL TENDENCY EFFECT
A tendency to rate all employees close to the midpoint of the scale so as to avoid
erring with a too high or too low rating. To avoid central tendency, evaluate each
major responsibility and job performance standard separately, using the entire rating
scale.
CONVENIENCE EFFECT
A tendency to rate only those major responsibilities easiest to assess, such as written
documents or interdepartmental relationships. Avoid the convenience effect by
considering all major responsibilities.

47

PA RTS EXC E L L E N C E

Performance Evaluation - Contents

EMPLOYEE COMMENTS
The Employee Comment section of a Performance Evaluation is the method
allowing input from the employee. Nobody knows, or understands, the job
better than the employee who is performing it! Oftentimes, the employee can
inform management of specific achievements or difficulties encountered on the
job. Remembering that the Performance Evaluation is a two-way
communication process can substantially increase productivity and morale.
Employees should be encouraged to comment and made to feel a part of the
overall process. Employee comments typically include:

Major accomplishments not known to management


Job interferences encountered
Changes in major responsibilities or authority
Changes in standards

Employee comments coupled with managements comments should be utilised


to formalise action plans for improvement or corrective measures.

EMPLOYEE COMMITMENT
The Employee Commitment section of a Performance Evaluation is a method
allowing obligation to action plans on the part of the employee. These action
plans are specific steps to be taken to improve performance and increase
effectiveness. Action plans typically include:
Commitment for future training
Commitment for continuing education
Commitment to follow recommended procedures
Commitment to improve performance in specific result area or
responsibility
Commitment to assume added responsibilities and greater authority
The action plans of both the employee and management should be co-ordinated.
Each should specify the what, when and how much each party is committed to
accomplish.

48

PERSONNEL DEV E LO P M E N T

Performance Evaluation - Contents

MANAGEMENT COMMENTS
The Management Comment section of a Performance Evaluation allows the
evaluator to summarise his overall appraisal of the employee. Comments can
range from highlights to lowlights of performance dependent upon the overtone
of the review. Additionally, work habits and work ethics which are usually not
listed as major responsibilities can be evaluated. These ancillary subjects might
include:
Organisation and Planning Skills
Organising the job
Planning ahead
Effective use of time
Establishing appropriate and effective follow-up procedures
Personal Accountability
Attendance
Punctuality
Integrity
Acceptance of responsibility for actions
Communication of Information
Verbal
Written
Working with Others
Explains decisions to others
Informs others on matters that may affect them
Cooperates to get the job done

MANAGEMENT COMMITMENT
The Management Commitment section of a Performance Evaluation is a
method allowing management to outline specific action plans to improve an
employees performance and effectiveness. These action plans typically include:
Training
Formal
On-the-job
Education
Academic
Technical

49

PA RTS EXC E L L E N C E

Performance Evaluation - Contents

Changes in Responsibilities or Authority


Elimination of Job Interferences
Tools or equipment
Ttime
Supporting jobs
Physical limitation
Building or department layout
Physical environment
Changes in Standards
If there is a performance problem, the action plan is where it should be identified
and addressed. The action plan should specify the how, when, and what each
party is committed to accomplish.

50

PERSONNEL DEV E LO P M E N T

Performance Evaluation
- Excellence Report
USAGE
To ensure a balance of employee feedback, it is recommended that an Excellence
Report be utilised. The report is intended to recognise exemplary actions and
results achieved by employees. Once completed by a member of management, it
should be kept in the employees personnel file for future reference and
consideration at the annual evaluation.

CONTENTS
The information recorded on the document should include necessary data such
as name, position, department and date. The pertinent facts concerning the
action or results being recognised should be elaborated upon. Lastly, the action
taken by management needs to be documented. This action could include:

Letter of Commendation
Promotion
Merit Increase
Bonus
Other Recognition Award

A sample Excellence Report is located in Appendix A

51

PA RTS EXC E L L E N C E

Performance Evaluation - Personnel File

USAGE
The Personnel File is the keystone to effective personnel development and
management. No singular document form, or report can emody all the
individual pieces that, when combined, complete the puzzle. The permanent
Personnel File is used as a reference to determine the following:

Evaluations
Promotions/Transfers
Merit Increases
Eligibility of Benefits
Training
Reprimands
Terminations

ORGANISATION
The Personnel File need be nothing more than a folder containing the
Dealerships records relating to an individual employee. Within the folder, the
information should be organised based on the frequency with which the material
is consulted. For example, the file could be divided into three parts:
Permanent data that is not frequently revised, such as pre-employment
documentation, receipts, etc.
Semi-permanent information such as emergency telephone numbers, salary
and position history, etc.
Items of a current nature that are revised frequently or kept for shorter
periods of time, such as performance records, attendance records, etc.

CONTENTS
Both the usage and organisation have been discussed in the previous evaluator.
As stated, the Personnel File is an accumulation of all the documents and data
related to an individuals employment. A brief outline and explanation of
material to be retained is shown below. Samples are included in Appendix A.

APPLICATION FOR EMPLOYMENT


An Application for Employment will provide general background information,
language skills, education and employment experience that can be helpful in
career planning.

52

PERSONNEL DEV E LO P M E N T

Performance Evaluation - Personnel File

INTERVIEW REPORTS
The Interview Report will provide observations of the employees personal
characteristics such as appearance, bearing, expressions, job knowledge,
motivation, and personality. This information can be helpful to determine
changes in character and deportment.

REFERENCE CHECKS
The Reference Checks will provide observations of the employees previous work
history. Information related to the type of work, quantity or output, quality of
work and work habits can be helpful in career planning.

EMPLOYMENT NOTICE
The Employment Notice will provide employment anniversary date, starting
salary, orientation supervisor, and starting position. This information can be
helpful determining benefits eligibility, merit increases, and seniority privileges.

ORIENTATION CHECKLIST
While not mandatory, an Orientation Checklist can be used to ensure the
Dealerships policies and procedures have been communicated to the employee.
Refer to Appendix B.

PERFORMANCE EVALUATION
The Performance Evaluation will provide major responsibilities, performance
summary, performance ratings, employee comments and commitments, and
management comments and commitments. This information can be helpful in
determining career goals, promotions/transfers, merit increases, probation, or
termination.

EXCELLENCE REPORTS
The Excellence Report will provide documentation of an employees exemplary
actions or achieved results. This information can be helpful in determining
evaluations, merit increases, merit awards, promotions and transfers.

PAYROLL CHANGE NOTICE


The Payroll Change Notice will provide changes related to department, job
classification, shift or rate. In addition, it will provide the reason for the
change(s). This information can be helpful in determining merit increase
increment and timing, eligibility of benefits, and seniority privileges.

53

PA RTS EXC E L L E N C E

Personnel Evaluation - Personnel File

ATTENDANCE RECORDS
The Attendance Records will provide dates, length of absence and reason for
absence; such as, sickness, vacation, jury duty, military commitment or others.
This information can be helpful in determining excessive absences, eligibility of
benefits and benefit premium rates.

LEAVE OF ABSENCE REQUEST


The Leave of Absence Request will provide nature of request, duration of leave,
managements response, and the date the employee is to return. This information
can be helpful in determining benefit eligibility and manpower requirements,
and lessen the chances of misunderstanding or legal action on the part of the
employee.

ACCIDENT REPORT
The Accident Report will provide the date, time and location of the accident.
Additionally, the report will describe the accident, injuries incurred, cause and
recommended prevention measures. This information can be helpful in
determining entitlement to health and accident benefits, property claims, and
conformance to governmental health and safety standards.

EMPLOYEE REPRIMAND
The Employee Reprimand will provide nature of warning, frequency of
violation, occurrence date, time and location. Additionally, supervision records
the specifics of the incident. This information can be helpful to determine the
extent of management action to be taken. Action may entail warning, probation
or possible termination.

TERMINATION NOTICE
The Termination Notice will provide the type of termination, specific reasons for
termination, benefit cessation schedule, and calculation of final pay cheque. This
information is critical to lessen the chances of misunderstanding or legal action
on the part of the employee.

EXIT INTERVIEW
The Exit Interview will provide the reason for the separation such as resignation,
discharge, layoff or retirement. Additionally, the effective date of the separation
and forwarding address is indicated. This information can be helpful to
determine eligibility of benefits, rehire status, reasons for employee turnover, and
where to send future communications.

54

PERSONNEL DEV E LO P M E N T

Compensation Plan - Evaluators

QUALIFIER
PLAN

ADMINISTRATION

DEALER ACTION

VALUE

There is a written compensation plan for


each job classification outlining the following
points:
Salary
Incentives
Customer Satisfaction
Compensation of employees is accomplished
in accordance with written plan
Compensation for employees is competitive
with other Dealerships in the area
The Parts Manager receives and reviews
monthly compensation data of
Departmental employees
Immediate supervisor participates in
establishing pay levels for job classification
and merit increases for their subordinates
Incentive plans have the following goals:
Improved Profitability
Improved productivity
Improved Efficiency
Annually, employees are provided a
Compensation Summary outlining all
remuneration including benefits

Assessment Score (100 points possible)


Certification requires a score of 80 or above

55

10
10
9
10
10

10

10
7
7
7

10

PA RTS EXC E L L E N C E

Compensation Plan - Plan

NEED OF WRITTEN PLAN


Consistency is the best way to show employees fair and equitable treatment. It is
only with a written compensation plan that you can provide consistency,
especially in a changing market. Compensation is usually the number one
concern of most employees. It is important to them not only from the standpoint
of meeting their own personal obligations, but also determining their own worth
and value amongst other workers.
A written compensation plan will also aid the accomplishment of the overall
purpose, which is:
To get people where you need them to be
When you need them to be there
To get people to do things you want in the way you want them done

SALARY
A compensation plan is broken into three categories: salary, incentives, and
customer satisfaction. Each has a distinct purpose and impact on an employees
motivation to do the total job. A salary or hourly rate is intended to compensate
the employee for standard or competent job performance. Again, these standards
should be outlined in the written job description for each classification.
Some variance in salary or hourly rate may exist due to recognition of time or
experience. For example, the job classification of a Counter Person may have a
scale as follows:
New Hire, no experience

$600/month*

New Hire, with experience

$675/month*

Current Employee, less than 5 years experience

$750/month*

Current Employee, more than 5 years experience

$825/month*

*Sample averages are derived from North American Operations, which are subject to variation for
Middle East purposes.

The variance in salary or hourly rate may also include incremental increases
based on performance evaluations. For example, the job classification of a
Counter Person may have increments as follows:
Outstanding (Far Above Standard)

710% increase

Above Standard

5% increase

Competent (Standard Performance)

2% increase

Needs Slight Improvement

A written Action Plan

Needs Much Improvement

A written Action Plan,


plus possible probation

The advantage of a salary or hourly rate is that it keeps the employee focused on
the entire job to be done. This portion of the employees compensation should
be 60-70% of the total.

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PERSONNEL DEV E LO P M E N T

Compensation Plan - Plan

INCENTIVES
Incentive are intended to accentuate the specific goals or objective of the
Department. Incentives are paid when the employee maintains above standard
performance, helping the Department achieve greater profitability. Incentives are
most effective where job performance is quantitative and where the volume of
work is directly proportional to the employees performance.
The types of incentives are multifaceted. The higher up the financial statement
the pay plan is based, the more complex it is to determine how much profit an
employees effort produces for the Dealership. Incentives can be based on the
following criteria:
Parts Sales
Parts Gross Profit
Parts Net Profit
Incentives other than financial:

Inventory turnover
Stock order purchase percentage
Lost sales
Earned and unused obsolescence reserve
Credit experience
Number of open Repair Orders due to non-availability of parts
Accuracy of documentation
Shipping
Receiving
Factory orders
Purchase orders
Repair orders
Counter tickets

As you can see, there is a wide variety of factors on which to base an incentive
plan. Dependent upon the criteria deemed most critical by management, the
direction and motivation of employees can be targeted. It is recommended that
the incentive plan be kept simple and easy to administer. No more than two
different criteria should be used to comprise an incentive plan. This portion of
the employees compensation should be 10-20% of the total.

57

PA RTS EXC E L L E N C E

Compensation Plan - Plan

CUSTOMER SATISFACTION
Customer Satisfaction is the life blood of any business. It is the key to both
survival and growth. This has to be stressed to all levels of the organisation. Too
many times, employees treat customer inquiries as interruptions, when in reality,
they are the purpose of our existence. Some car manufacturers provide their
dealers with a Customer Satisfaction Index (CSI)) you could also devise one of
your own.
If you must rely on your own tabulations, several measurable factors are
available. They are:
Number and type of customer comments
Verbal
Written
Returns due to incorrect part
Technicians
Wholesale
Retail

Cars tied up awaiting parts per 100 repair orders


Reorders due to incorrect original order
Number of lost sales
Comments received from other departments about treatment or assistance
provided

It is difficult to put a dollar value on goals involving Customer Satisfaction.


These are valuable to the Dealership, however, and the Parts Manager may want
to discuss with the Dealer the four goals involving Customer Satisfaction and
their impact on the Dealership. The four goals are:

Number of cars sold based on referrals from the Parts Department


Improvement in Customer Satisfaction Index
Reduction in the number of regional complaints registered
Improvement in results of personal, telephone and mail follow-ups

The Customer Satisfaction related portion of the employees compensation


should be 10-15% of the total.

58

PERSONNEL DEV E LO P M E N T

Compensation Plan - Plan

ENVIRONMENTAL FACTORS
Once all three elements are brought together: salary, incentives and customer
satisfaction, the total compensation depends on six Environmental Factors.
The Going Rate The same job means the actual job to be done, not just
the same job title. The going rate includes not just base pay, but also fringe
benefits
Jobs to be Done Higher than going rate may be needed where there are
obstacles to overcome such as poor location, previous mishandling, or poor
availability. Lower rates may be possible where pay is earned with less effort
People Availability the Dealership may have to pay more/less depending
on working conditions as compared to other Dealerships
Employees Values Adequate pay for a given job will vary with each
employees idea of what they think they are worth. Unless you can meet it,
or promise it in the future, dissatisfaction is likely and turnover highly
possible. High turnover and difficulty in recruiting are signs that a
compensation plan may be poorly designed
What the Dealership Can Afford This can be determined by forecasting
the contribution the employee will make to the Dealership in terms of
realistic operating results. These reports are the standard job for which
the Dealership will have to pay the going rate, and from which any variance
or incentives are formulated in order to pay for performance

59

PA RTS EXC E L L E N C E

Compensation Plan - Plan

WRITTEN COMPENSATION PLAN


A written compensation plan is only a partial solution to recruiting and retaining
qualified personnel. Implementation and adherence to the written plan is crucial
to the accomplishment of:
Non-discrimination equal pay for equal work
Consistency Dealerships objectives of improved customer satisfaction
and increased profitability are achieved
Predictability personnel expenses and departmental net profit can be
forecasted accurately
In addition to the written compensation plan outline, a manager should be
assigned the responsibility of implementation and coordination. The Manager
most qualified to accomplish this task is the Business manager or Comptroller in
consultation with the Human Resource Manager. The coordination effort will
ensure that policies concerning compensation are strictly adhered to, and
equivalent job classifications are in line with each other. The co-ordinator can
also orchestrate the department managers annual review of pay levels and merit
increase for individual job classifications.

NEED OF A COMPETITIVE
COMPENSATION PLAN
A competitive compensation plan will ensure the recruitment and retention of
qualified personnel. Without a competitive plan, manpower turnover will occur,
increasing both direct and indirect costs. Direct costs include recruitment,
interviewing, orientation and training. Indirect costs include loss of productivity,
lost efficiencies, increased workloads, and reduced customer satisfaction. While
these expenses are difficult to measure, one worldwide manufacturer has
estimated cost at $100,000 per employee turnover.
Not only are costs incurred, but the organisation as a whole suffers from low
morale, lack of teamwork and the failure to achieve sales and profit objectives. A
synergistic effect can be gained from a competitive compensation plan.

60

PERSONNEL DEV E LO P M E N T

Compensation Plan - Plan

MEASURING COMPETITIVENESS
Determining the competitiveness of your compensation plan is not an easy task,
but it can be accomplished. As mentioned earlier, the first indication of
inequities in pay is employee turnover. To alleviate this occurrence use one or
more of the following methods:

Interviews with prospective employees


Interviews with terminating employees
Dealer groups or other forums
Internal trend reports
Compensation per employee
Production per employee
Cost per employee
Employees hired/terminated
Industry reports and publications
Parts Managers clubs and associations

While this task might be secondary for most line managers, their input is crucial
to the overall effectiveness of the compensation plans. Whenever information is
collected, it should be directed to the Business Manager or Comptroller for
reference at the Managers annual review of compensation by job classification.
The data gathered, compiled and reviewed should include:

Salary or hourly rates


Incentives (type and amount)
Benefits
Standards of performance
Key job elements
Production output

61

PA RTS EXC E L L E N C E

Compensation Plan - Administration

PURPOSE OF A MONTHLY REVIEW


The purpose of the Parts Managers monthly review of compensation for
Departmental employees is for control and accountability. Any Manager that is
held responsible for Departmental profitability must be aware of Departmental
expenses. In most Dealerships, personnel expenses comprise 50-55% of total
expenses, or stated differently, 44-48% of gross profit. Needless to say, it is the
greatest expense incurred by the Department, having the greatest impact on net
profit
In order for the Parts Manager to control personnel expense, he must have access
to the data. Hopefully, his access to compensation data will allow him to forecast,
organise, and control expenses, thereby maximising productivity and
profitability.

MECHANICS OF A REVIEW
In order for the Parts Manager to conduct an effective review of the
Departments compensation data, he will need to develop comparative
information.
Some of the comparisons would include:

Cost of Sale per employee, per month


Gross Profit per employee, per month
Personnel Expense as a percent of sales
Personnel Expense as a percent of total expenses
Personnel Expense as a percent of gross profit

$12,000*
$14,000*
13%*
50-55%*
44-48%*

*Sample averages are derived from North American Operations, which are subject to variation for
Middle East purposes.

The Parts Managers review should also include examination of payroll records
as a means of evaluating individual performance. Only in this way can a Parts
Manager assure that employees are paid according to their contribution to the
Department.

SUPERVISOR PARTICIPATION
In the development of compensation plans it is important to pay according to
performance. Because the immediate supervisor is the person closest to the
employees day-to-day performance, they are in the best position to evaluate the
employees contribution.

62

PERSONNEL DEV E LO P M E N T

Compensation Plan - Administration

The immediate supervisor should be consulted whenever pay levels or merit


increases are to be reviewed or adjusted. Where practical, it is suggested that the
immediate supervisor observe and document job performance on a continuing
basis and initiate merit increase to the Parts Manager. These recommendations
should then be the basis for discussion by management at the annual review
sessions.
It should be emphasised to all employees the influence their immediate
supervisor has on job classification, pay levels, and individual merit increases.

GOALS
There is no doubt that routine pay increases are effective in motivating
employees. Too frequently, however, these increases become automatic and are
expected by the employee. Without measurement of an individual employees
contribution, pay for performance is not assured. If, however, goal setting and
achievement are used as a basis for compensation, the Dealerships goal of paying
for performance can be attained.

INCENTIVE PLAN DESIGN


To have an effective incentive plan, there must be agreement between manager
and employee. The incentive must also be;

Specific
Time oriented
Measurable
Achievable

Specific incentives indicate exactness, such as 10% increase in sales versus


improved sales.
Achievable incentives are plausible such as less than 5 cars tied up per 100 repair
orders versus no cars tied up waiting for parts.

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PA RTS EXC E L L E N C E

Compensation Plan - Administration

GOAL: IMPROVED PROFITABILITY


The goal of any business is to continually improve profitability. This goal can be
achieved in one of three ways:
Increased sales
Increased gross profit retention
Decreased expenses
Increased profitability should not be only managements concern, but the
concern of all the Dealerships employees. The only way to generate employee
concern is to level a degree of accountability on them. This degree of
accountability must meet the designed criteria already discussed to be effective.
Department goals also imply teamwork and peer pressure. They typically include
the following factors:
Sales
Dollar increase
Percent increase
Sales category, total, per repair order or invoice
Gross Profit
Dollar increase
Percent increase
Percent retention
Sales category, or total
Expenses
Dollar decrease
Percent decrease
Expense category, total, per employee
Percent of sales
Percent of gross profit
Whatever measurement or goal that is set, it should be easy to administer, and
within the contribution realm of the employee.

GOAL: IMPROVED PRODUCTIVITY


Improved productivity is well within the control of most employees, since
productivity is the measure of ones effort. The benefits of improved productivity
are increased sales and decreased expenses, either directly or as a percentage of
sales. Productivity goals can be:
Internal Sales
Per counter person
Per repair order

64

PERSONNEL DEV E LO P M E N T

Compensation Plan - Administration

Retail Sales
Per counter person
Per repair order
Wholesale Sales
Per wholesale representative
Per invoice
Per account
Wholesale Accounts
Net gain
Number of orders

GOAL: IMPROVED EFFICIENCY


Improved efficiency is another management goal that is well within the control
of most employees, since efficiency is the measure of ones productivity
compared to costs. The major benefit of efficiency is the savings to be realised in
time, energy, or money. Efficiency goals can be:
Inventory
Adjustment P & A Inventory as a percent of total inventory
True Turnover
Percentage of Availability
Percentage of Gross Return on Inventory Invested (GROII)
Cars tied up per 100 repair orders do not exceed maximum objective
Bin labels accurate and up-to-date
Correct stocking locations, and counts are accurate
Computer and Operating Report dollar value within specific percent of
one another
Ordering
Stock orders are a minimum 80%
Emergency orders are logged and follow-up maintained
Merchandising and discount programme are taken full advantage of
Orders are submitted accurately
Parts returns are a specified percentage of total Return Reserve
Shipping and Receiving
All orders are inspected for accuracy against packing slips
Transportation and shortage claims are submitted accurately and timely
Parts are delivered on time and in saleable condition

65

PA RTS EXC E L L E N C E

Compensation Plan - Administration

Expense Control
Number of lost days due to accidents do not exceed maximum objective
Supplies, such as computer paper, forms, documents and pens are within
budget
Inventory kept neat for safety and shrinkage
Credit over 90 days is within maximum allowed
Warranty charge-backs due to missing defective parts are kept to
minimum
Delivery truck downtime is kept to minimum
The intent of this evaluator is to stress that management target any incentive
plan on controllable and results-oriented factors.
The purpose of an incentive plan is to focus the employees attention, concerns
and efforts toward the overall objectives of the Dealership. Incentive plans are
effective if they are understood and achievable by all the parts involved. And, the
rewards for achievement must be perceived as rewarding by the recipient.
For additional incentive ideas refer to the Standards of Performance sections in
the sample Job Descriptions located in Appendix A.

66

PERSONNEL DEV E LO P M E N T

Compensation Plan - Administration

PERSONAL COMPENSATION SUMMARY


An annual Personal Compensation Summary serves as a reminder to employees
of the total compensation received from the employer. It is human nature to
forget and to take for granted benefits and income plans that are used
infrequently. Oftentimes, the lure of more pay is tempting to a good employee.
They sometimes fail to stop, think and compare the total compensation plan
being offered by a competitor.
The Personal Compensation Summary serves as a constant reminder of what you
are offering in terms of pay, benefits and income security, and retirement. Your
efforts to provide such employee security will go un-rewarded if it goes
unrecognised.

CONTENT
The contents of a Personal Compensation Summary should include the
following items, if applicable.
Statement from Dealer
Health Care Benefits
Basic Medical
Dental
Vision
Major Medical
Retirement Benefits
Social Security
Non-contributory
Contributory

Disability Income
Stock Savings
Profit Sharing
Survivor Benefits
Total of Benefits Offered

A sample of the Personal Compensation Summary is shown in Appendix A.

67

PA RTS EXC E L L E N C E

Compensation Plan - Decision Grid

COMPENSATION PLAN THOUGHT CHECKLIST


EXPECTATION (Who)

RESPONSE (What)

COMPENSATION
PLAN
PURPOSE

MEET THE
FOLLOWING
STANDARDS

To attract employees
Retain good employees
Encourage productivity
Control employee time
Control employee activity
Promote efficiency
? If Parts Department personnel make

more money, does the Dealership


? When the Parts Department

?
?
?
?
?
?
?
?
?

make more money, do the employees


benefit
Is the pay plan stable so it does not have
to be modified if business volumes change
Is it simple and easy to understand
Does it reinforce the job description
Is it fair and attractive to cost of living
Does it provide for getting established
an opportunity for advancement
Does it relate to factors that are under
the employees control
Is it based on performance
Does it provide prompt payment of
earnings
Is it competitive in the marketplace

68

PERSONNEL DEV E LO P M E N T

Communication - Evaluators

QUALIFIER
REVIEW
MEETINGS

FINANCIAL
RESULTS

DEPARTMENTAL
OBJECTIVES

TELEPHONE

DEALER ACTION

VALUE

A written Performance Evaluation is


provided to each employee at least annually
The Dealership conducts management
meetings monthly
The Parts Department conducts
Departmental meetings monthly
The Parts Manager receives monthly
financial results and trend information
affecting the Parts Department
Sales and gross profit
Stock order allowances
Inventory
Expenses by individual accounts
Departmental profit/loss
Other trends and data

10
10
10

8
8
10
8
8
8

The Dealer or General Manager along


with the Parts Manager establishes
monthly objectives
The Departmental objectives and results
are regularly communicated to employees

10

Telephone communications incoming


and outgoing to the Parts Department
are effectively handled

10

Assessment Score (100 points possible)


Certification requires a score of 80 or above

69

10

PA RTS EXC E L L E N C E

Communication - Introduction

Good communication within the Dealerships parts operation is essential. The


majority of problems experienced in the Department usually reflect a lack of
communication.

SKILLS
Basic communication skills include four points:
Listening and Observing the process of taking in information from
someone and organising it so you can use it intelligently
Questioning the process of using a series of logically related questions to
systematically obtain the information you need
Verifying the process of confirming the information exchanged between
you and the person communicating with you, and determining whether or
not an agreement is reached
Explaining the process of giving a person information efficiently,
logically, and convincingly
Not only is it important that communication be open and free flowing within
the Parts Department alone, but between all departments as well. The Parts
Department forms the hub of the Dealership, which all of the Departments
interface with and rely upon. Observe the diagram shown.
Its fairly well recognised in the industry that the Sales Department makes the
first sale, but repeat business depends upon the service delivered after the sale.
The Parts Department not only supports the Service Department, but all the
other departments both directly and indirectly. The New Vehicle Department
needs availability to provide accessories for its new vehicles. The Used Vehicle
Department needs availability to support its reconditioning effort. The Finance
and Insurance Department depends on the Parts Department to provide
availability of chemicals to perform rust proofing, fabric coating, paint sealants,
etc. And, both the Service Mechanical and Service Body Department rely on the
Parts Department for availability of mechanical and crash parts.

70

PERSONNEL DEV E LO P M E N T

Communication - Introduction

PARTS DEPARTMENT DEALERSHIPS HUB


Customer

New
Vehicle
Department

Used
Vehicle
Department

Finance
Insurance
Department

Parts
Department

Service
Mechanical
Department

Support
(Secondary Repairs)

Competition

71

Service
Body
Department

PA RTS EXC E L L E N C E

Communication - Meetings

DEALERSHIP MANAGEMENT
Alone, the Parts Department cannot assure total customer satisfaction. This
requires the combined efforts of all departments and managers. Only with a total
Dealership effort will customers receive the products, services, and treatment
that will provide the competitive edge.

PLANNING
Bringing together all the Dealerships department managers monthly and
conducting an effective meeting requires both planning and active participation.
To aid your planning, it is recommended that an agenda be completed and
circulated prior to the meeting. This will allow the managers to organise the
information necessary for their individual input. By actively involving each
manager, participation and co-operation can be enhanced.

SHEDULING
The Scheduling of the management meetings is crucial to their success. Most
Dealerships schedule their meetings as soon as feasible after the release of the
Monthly Operating Report. This permits a timely review and forecasting for the
upcoming month.

CONDUCTING A MANAGEMENT
MEETING
Sitting together, the Dealer or General Manager should chair the meeting,
thereby keeping the session moving in a predetermined direction. The purpose
and resolutions to be decided upon should be stated at the beginning of the
meeting. Each department manager should then be called upon to provide
his/her report regarding the subject under discussion. At the conclusion of the
meeting, each subject discussed should be enumerated along with its final
disposition. To help organise your meetings, a sample agenda is shown in
Appendix A Communication.
The same basic guidelines that apply to management meetings also apply to
departmental meetings.

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PERSONNEL DEV E LO P M E N T

Communication - Meetings

CONDUCTING A DEPARTMENTAL
MEETING
During each regularly scheduled Department meeting, the Parts Manager should
review the results of the previous month and establish objectives for next month.
The results and objectives can be both financial and non-financial. A typical list
would include:

Financial

Sales and Gross Profits


Expenses
Departmental Profit/Loss
Adjustments P&A Inventory
Inventory Analysis
Current Value
Turnover
Level of Service
Obsolescence

Non-financial

Housekeeping and Safety


Customer Satisfaction
Job Description Changes
Job Interference Encountered
Interdepartmental Relations

Accompanying the discussions of results and objectives should be input and


feedback from the employees. Oftentimes, they can provide logical explanations
as to why certain objectives were easily attained or not. Often these reasons can
be categorised as job interferences such as lack of manpower, time, carrier
problems, inaccurate documentation, computer downtime, shortages, etc.
Unless the Manager is made aware of these obstacles, the problem is likely to
repeat itself. This is why employee feedback is so critical.
The knowledgeable Manager offers problems for his employees to solve. This not
only develops a sense of teamwork, but makes the tasks necessary to resolve the
problem more palatable to the workers.
To help organise your meetings a sample agenda is shown in Appendix A.

73

PA RTS EXC E L L E N C E

Communication - Financial Results

PURPOSE
The purpose of the Parts Manager receiving monthly financial results and trend
information is quite obvious. How can anyone be expected to pilot the ship
without being able to read the charts? For the Parts Manager to do an effective
job, he must know where he is headed financially. The financial results and trend
information serve as indicators to the manager, reflecting previous operational
decisions and influencing future ones.
The results recommended to be provided to the Parts Manager include:

Sales and gross profit


Stock order allowances
Adjustment P&A inventory
Departmental profit/loss
Other trends and data

This financial data can be furnished easily by providing the Parts Manager with
his section of the Operating Report. Additionally, each expense allocation by
individual account will be shown. This information is helpful to the Parts
Manager in determining the effectiveness of his expense control.
If, for whatever reason, Dealership management does not desire to share all the
information previously discussed, a Daily Operating Control (D.O.C.) sheet can
be prepared indicating only that information management is willing to share.

74

PERSONNEL DEV E LO P M E N T

Communication
- Departmental Objectives
PURPOSE
The Dealer or General Manager should work with the Parts manager to jointly
establish Departmental objectives. The job of any Dealer or General Manager is
to provide direction to his departmental managers. Without this direction, the
risk is run that the effort of the whole will not be synchronised with efforts of its
parts. For the Dealership to achieve its overall objective whether sales, profits, or
customer satisfaction, all departments must be organised and working in concert
with one another.
By establishing objectives jointly, the Dealer or General manager is afforded the
opportunity to receive direct feedback from the Parts Manager.

OBJECTIVE SETTING PROCESS


The process of setting monthly objectives should begin with a review of the
previous months results. As each objective is reviewed, it should be determined
why and how the objective was attained or not attained. The why and how
responses provide the true and meaningful answers to operational decisions.
The key, or staring point, for most Parts Departments effective forecast begins
with the Service Department. Internal sales or parts sold on repair orders
generally account for over 50% of the Parts Departments total sales. Next in
order of priority would be wholesale, retail, and internal sales (to other
departments). This may vary from dealership to dealership, but no department
stands alone they are all interdependent.
Objectives may include either financial or non-financial results. Below is listed a
sample of both for consideration.

PARTS DEPARTMENT OBJECTIVES


FINANCIAL
Sales
Gross Profit
Expenses
Department Profit
Inventory Value
Obsolescence Value
6 Months No Movement
12 Months No Movement
R.O.S.
G.R.O.I.I.
P&A Adjustments
Discounts Earned
Turnover

NON FINANCIAL
Lost Sales
Emergency Purchases
Cars Tied Up Due to Lack of Parts
Housekeeping and Safety
Customer Satisfaction
Interdepartmental Relations
Space Utilisation
Warranty Handling
Scrap Handling
Core Handling

75

PA RTS EXC E L L E N C E

Communication
- Departmental Objectives
EMPLOYEE COMMUNICATION
The purpose of communicating both objectives and results to employees is to
motivate and direct their efforts. Frank and open discussion of Dealership
objectives and results is the most effective way to achieve clear understanding.
Employees do a better job when they are given an overview of the Companys
objectives and how their efforts help to achieve them.

PROCESS
Communication of both objectives and results can occur by five different
methods:

Formal department meeting


Individual day-to-day discussions
Formal discussions or meeting with individual employees
Formal objective setting sessions with individual employees
Written communication, such as bulletin board or newsletter

76

PERSONNEL DEV E LO P M E N T

Communication - Telephone

NECCESSITY
Most incoming telephone calls are from customers. For this reason alone,
telephone etiquette takes on added importance. Employees who are responsible
for answering the telephone should be reminded that when the phone rings its
a customer wanting information or to place an order. The telephone should be
viewed as a sales tool and priority, not an interruption.
Each time a customer calls, an impression is made. Employees should be taught
to talk in a positive and affirmative manner. Listed below are tips on effective
telephone use:

TELEPHONE ETIQUETTE
Always answer by the third
ring
Avoid putting the caller on
hold
Smile when you answer
(positive attitude)
Use your name and
identify the Dealership
Get the callers name and
use it
Be friendly

Do not rush
Show consideration and
helpful attitude
Listen attentively and get all
the facts
Do some additional selling
Always let the caller hang up
first
If you promise to call back
with information do it
promptly

77

PA RTS EXC E L L E N C E

Communication - Telephone

EQUIPMENT
Nothing can be more frustrating to a customer than being put on hold or
hearing a busy signal. The type of equipment, number of instruments, and
features should be carefully considered and evaluated based on the volume of
incoming and outgoing calls.
Also, the call routing should be evaluated. Many Dealerships have found that
direct lines versus switchboards alleviate having to put the customer on hold.
Dealerships selling extensively in the wholesale market have found toll-free lines
effective in promoting additional sales.
To assist you in evaluating your telecommunications system, consider contacting
your local telephone representative. Generally, their surveys are in-depth and free
of charge.

78

PERSONNEL DEV E LO P M E N T

Training and Development - Evaluators

QUALIFIER
PLAN

RESOURCES

EVALUATION

DEALER ACTION

VALUE

A training and development plan is


developed for each Employee within
the Department
Each training and development plan
is evaluated:
Management annually reviews and
revises
Employees periodically record and
evaluate
Each employees training and development
plan and its progress is documented and
retained in their personnel file
The Parts Department maintains a training
resource library
The Parts Department develops a needs
analysis of training courses and training
materials annually
Employees receiving training outside the
Dealership, share their knowledge and
skills with other employees
The Parts Department conducts an
evaluation of all internal and external
training utilised
Employees are recognised and rewarded
for successful completion of training
courses

Assessment Score (100 points possible)


Certification requires a score of 80 or above

79

12

12
12

12

10

10

10

12

10

PA RTS EXC E L L E N C E

Training and Development - Plan

USES
A Training and Development Plan allows the manager to evaluate the training
needs of an individual employee, select the training most appropriate, and follow
up on progress. If this plan is maintained and kept in an employees Personnel
File, it will provide the necessary information for the Performance Evaluations
Action Plans.

PROCESS
The intent of the plan is to ensure that the training is necessary and that the
training selected provides the appropriate skills or knowledge needed.
In order to identify training needs, an inventory of the employees job skills is
required. Skills needed for the same job classification are identical. Take the time
to develop a list of job skills needed to operate your Parts Department effectively,
and then rate every employee as to his proficiency in each skill. A sample Skills
Inventory is shown in Appendix A.
Next, compare the skills that have been rated on the Skills Inventory and
compare them to the responsibilities shown in the employees Job Description.
If there are responsibilities on the Job Description that are not indicated on the
Skills Inventory, training is needed. If the employee is being developed or
considered for a promotion, compare the responsibilities of the Job Description
for the higher level job classification to his Skills Inventory. This step will
increase the employees readiness level.

CONTENT
After you have identified each employees skills and made a comparison to either
their current or future Job Description, the training needs can be identified.
Training or development needs are usually necessary for the following reasons:
To correct a problem These are the needs that come from those
responsibilities the employee should know how to do, but either does not
do at all or does unsatisfactorily
To maintain a skill All employees skills must be kept up-to-date. Every
year models change as does technology required to do the job
To develop new skills These are skills that will be required in the future.
They are intended to prepare the employee for a higher level job
classification

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PERSONNEL DEV E LO P M E N T

Training and Development - Plan

To help keep this information organised and up-to-date, it is recommended that


the employees Training and Development Plan be documented and retained in
the employees Personnel File. A sample Training and Development Plan is
shown in Appendix A.

EVALUATION
To assure that the Training and Development Plan is not initiated and then
dropped, it should be reviewed and revised by management at least once a year.
The best time to conduct the review is just prior to the employees Annual
Performance Evaluation. Reasons for more frequent review would include the
following:
During Special Evaluations, especially if the reason is for poor performance
When job performance begins to decline. For example, incorrect invoicing
or customer complaints
When new equipment or technology is introduced to the Department,
such as computers
When an employee is transferred, promoted, or given new job
responsibilities

MANAGEMENT PROCESS
The process by which the Training and Development Plan is reviewed and
revised is identical to the original development of the plan.
Re-evaluate and update the employees Skills Inventory
Review the employees Job Description and compare to Skills Inventory
Re-examine and determine training needs and reasons
Select appropriate training
Re-establish completion dates
If the original Training and Development Plan has been written and retained in
the employees Personnel File, the review process is easily accomplished.

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PA RTS EXC E L L E N C E

Training and Development - Plan

EMPLOYEE PROCESS
Each employee should be encouraged to both record and evaluate their progress
towards the goals of their own Training and Development Plan. This starts at the
beginning when the plan is being developed. Besides placing a copy of the plan
in the Personnel File, each employee should receive a copy.
By monitoring their own progress, employees become actively involved in the
plan. This process generates employee commitment and further guaranteed
success.

DOCUMENTATION
As previously mentioned, the employees Training and Development Plan should
be documented and retained in the employees Personnel File. By doing so, time
and energy can be saved in the entire personnel management process. Personnel
management relies heavily upon documentation. And, documentation relies
upon several bits and pieces of information that, when combined, represent a
clear and concise picture of an employees history.

USES
The employees Training and Development Plan can be used to:
Develop Action Plans for the employees Performance Evaluation
Determine cause(s) of performance problems
Improve employees job performance
Determine trainings cost effectiveness
Provide a systematic method of preparing employees for promotions and
transfers
Enhance employee morale

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PERSONNEL DEV E LO P M E N T

Training and Development - Resources

LIBRARY
Training can be in-house (internal) or outside the Dealership (external). To
protect the Dealerships investment in training materials and to ensure their
availability, a resource library should be maintained. This library should be
maintained by the Parts Manager or by his assistant. Their functions would
include maintenance and cataloguing of the various resource materials on hand.
By cataloguing, time can be saved when materials are needed, plus money can be
saved by eliminating duplication.

AVAILABLE MATERIALS
The cataloguing process should denote both the subject matter and the medium.
Training materials available cover a wide range of topics.
They include:

Customer handling
Selling techniques
Telephone use
Inventory control and management
Parts Catalogues and Price Schedules
Financial management, and many more

When considering the purchase of internal training materials, keep in mind what
you currently have on hand and the audio-visual equipment required to use
them.
Shown below is a sample Catalogue Card which can easily be replicated on a 3x5
index card.

TRAINING MATERIALS CATALOGUE CARD


Subject:
Title:
Medium:
Source:
Cost:
Updated:
Comments:

Out

83

In

User

PA RTS EXC E L L E N C E

Training and Development - Resources

ANALYSIS
The first phase in training is the development of each individuals skills. After all
the Departments employees have been evaluated, this information needs to be
combined to develop the total Departments training needs. Once the total
training needs have been determined the next phase is to select and schedule the
training and development necessary.
The benefits of analysing and developing Departmental training needs are
efficiency and cost effectiveness.

INTRODUCTION
Three steps necessary to take in planning overall Department training are:
Set up budget for training
Determine if training is best conducted internally or externally
Select and schedule training

BUDGET
The budget is oftentimes a limiting factor. By determining in advance the
monies available, the selection process becomes a choice of cost versus benefit.

INTERNAL VERSUS EXTERNAL


The determination between internal and external training has several factors
which must be considered.
Use Internal Training:
When an employee proficient in the subject has some experience in
training
When time is available
When facilities and equipment are available
When both instructors and participants are available
When an off-the-shelf course is available

SCHEDULING
Once you have budgeted for and determined the training required, course
selection and scheduling can be done. Schedule the training during slow periods
to diminish disruptions. Remember, training can create a manpower shortage.
Plan for this shortage, so other employees do not become frustrated and critical
tasks go undone.

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PERSONNEL DEV E LO P M E N T

Training and Development - Resources

PURPOSE
Regular participation in training keeps your employees up-to-date in both
product and technological changes. They offer the most effective methods of
achieving customer satisfaction.
There are times when several employees need the same training. Often, it is
unrealistic to expect total participation due to time and expense. Instead, you
send one person to the programme anticipating the skills and knowledge to be
shared with the persons peers.

PREPARATION
The attendee should be prepared to take complete notes and possibly tape record
the key elements within the course. Let the employee know in advance of his
attending the course to ensure maximum effectiveness.

SELECTION
The best selection of a participant who will be expected to train his/her peers, is
someone that already possesses moderate proficiency in the skills to be taught
and who has good communication skills. Go over the course outline with the
participant in advance and emphasise the areas that are most important to your
Department.
Upon the participants return from the training course, debrief the person by
reviewing the manual or other handouts. Ask what the instructor stressed and
what the participant felt were key learning points. After the debriefing, begin
an outline for the topics jointly decided upon. Then determine the best method
of delivery to peers, group or one-on-one, and the equipment necessary for the
training.
Provide support. Do not expect the employee to plan and conduct the training
on his/her own. Offer the help deemed necessary and then follow through.

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PA RTS EXC E L L E N C E

Training and Development - Evaluation

PURPOSE
The purpose of evaluation is to determine its impact on the Dealership and
whether it was cost effective. Once you have evaluated the training, you can
make an informed decision as to:

Sending additional employees to the same course


Whether the course is best suited for particular employees
Recognise areas for improvement, if course was conducted internally
Modifications that need to be made for future training activities

PROCESS
The steps involved when evaluating a training activity include:

Measuring participants reaction


Measuring what was learned
Measuring job performance after attendance
Measuring impact on customer satisfaction

A sample Training Evaluation form is shown in Appendix A.


In order to measure what was learned, testing is recommended. Performance
measured is performance improved. What this means is that students whose
knowledge is tested will strive harder to learn. The tests can be verbal, written, or
an observed drill. They need to be comprehensive enough to provide reassurance
to management.
The impact on customer satisfaction will be longer term. Look for indicators
such as customer comments, improved Customer Satisfaction Index, reduction
in returns, and increased sales.

VALUE
Recognition for a job well done is always appreciated. At a minimum, praise
given for successful completion of a course instils pride, confidence, and
motivation. Your investment in both time and money will pay big dividends to
the Dealership.

REWARDS AND RECOGNITION


Involve your employees in the awards process. Make presentations in the
presence of peers at the monthly Departmental meeting or Dealerships annual
awards banquet. Make such activities both fun and worthwhile.

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PERSONNEL DEV E LO P M E N T

Termination - Evaluators

QUALIFIER
POLICY

DISCIPLINARY

LEAVE OF ABSENCE

DEALER ACTION

VALUE

There are written policies regarding


termination procedures which outline:
Reasons for involuntary termination
Reasons for voluntary termination
Employee disposition
Exit interview
Retention of documentation in
personnel file
Dealership has written policies regarding
disciplinary reprimand or probation which
outline:
Reasons for reprimand or probation
Duration of probation
Conditions of reinstatement
Retention of documentation in personnel
file
Dealership has written policies regarding
Leaves of Absence which include:
Reasons for Leaves of Absence
Duration of Leave
Employee disposition
Retention of documentation in personnel
file

Assessment Score (100 points possible)


Certification requires a score of 80 or above

87

10
10
5
5
10

10
5
5
10

10
5
5
10

PA RTS EXC E L L E N C E

Termination - Policy

INTRODUCTION
This qualifier is intended to assist the Dealership in developing a Termination
Policy that will help avoid legal action and provide appropriate documentation
should litigation occur.

NECESSITY OF POLICY
Most Dealerships hire potential candidates for long term employment. It is to
the benefit of both parties that the relationship be long lasting. The company
enjoys greater productivity, efficiency and continuity, while the employee enjoys
financial security and personal growth. However, conditions sometimes arise that
make termination unavoidable.
Managements right to terminate its employees has been infringed upon during
the last decade, however, employees are bringing legal action against their
employers with greater frequency. The legal action seeks either reinstatement of
employment or punitive damages. Due to these societal changes, it is imperative
that Dealerships have a written Termination Policy that is within the law.
It is strongly recommended that legal counsel review your termination policies
when complete.

INVOLUNTARY TERMINATION
Involuntary termination is the act of releasing an employee for either
unsatisfactory job performance or violation of company policies or procedures.
These legitimate reasons by themselves, however, need to be supported by
additional contingencies.

UNSATISFACTORY JOB PERFORMANCE


Contingencies

Verification

Are job requirements mutually understood?

Job Description

Does objective measurement reflect


unsatisfactory job performance?

Job Standards

Has feedback on job performance


deficiencies been provided to employee?

Performance Evaluations

Has reasonable effort been extended to


help overcome performance deficiencies?

Training & Development

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PERSONNEL DEV E LO P M E N T

Termination - Policy

VIOLATION OF COMPANY POLICIES AND PROCEDURES


Contingencies

Verification

Have policies and procedures been


fully communicated to employee?

Employee Handbook

Has enforcement of policies and


procedures been consistent and
uniform?

Personnel Files

Has confusion and misunderstanding,


which possibly led to violation, been
eliminated?

Employee Reprimands

VOLUNTARY TERMINATIONS
Voluntary termination is the separation of employment at the employees
request. The reasons for separation are typically:
Retirement
Medical Disability
Other Employment

RETIREMENT
Retirement plans outlining age requirements, length of service, and benefits
usually predetermine the effective date and allow it to be anticipated. There are
occasions, however, when either management or the employee desires an early
retirement. These conditions and subsequent benefits should be predetermined
and outlined in the Dealerships retirement plan.

MEDICAL DISABILITY
Medical disabilities are physical conditions or handicaps that prohibit the
employee from performing their job. Since most Dealerships have coverage,
either government sponsored or private disability insurance, the degree of
physical disability, duration and benefits are predetermined and outlined in the
insurers policy. For protection against bogus claims, it is recommended that a
designated company doctor verify the disability.

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PA RTS EXC E L L E N C E

Termination - Policy

OTHER EMPLOYMENT
Employees leave for real or perceived better opportunities. The employees
reasons could include more pay, better benefits, better working conditions or
advancement. If the Dealership has done its job well in creating an environment
conducive to employee morale and betterment, turnover can be minimised.
Exit interviews offer an excellent opportunity for management to evaluate their
own personnel management practices. This evaluation will pinpoint areas of
non-competitiveness and in some instances recover a good employee.

EMPLOYEE DISPOSITION
In both types of termination the employee has certain rights and privileges
regarding his/her benefits. The conversion provisions should be clearly defined
in both the benefit booklet supplied by the carrier and the Termination Policy.
Medical and life insurance are usually convertible at non-group rates. Vacations,
sick days, severance pay, profit sharing and stock savings usually entail a payout
if a specific calendar date of length of service is attained. These employee
entitlements should be communicated to the employee at the time of discharge.
A sample Termination Notice is shown in Appendix A.

EXIT INTERVIEWS
Exit interviews for both voluntary and involuntary terminations should be
conducted. The purpose of the interview is:
To handle the administrative details, as explained in Employee
Disposition
To explain the reasons for termination, if involuntary
To learn the employees opinion of the Dealerships employment practices,
if voluntary
A sample Exit Interview is shown in Appendix A.

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PERSONNEL DEV E LO P M E N T

Termination - Disciplinary

INTRODUCTION
This Qualifier is intended to assist the Dealership in developing a disciplinary
policy that will help avoid legal action and provide documentation should
litigation occur.

NECESSITY OF POLICY
Most employees want to do a good job and respect the rights of others. They also
expect fair and consistent treatment from management. To help achieve these
objectives, in addition to establishing job standards and shop rules, the
consequences for behaviour deemed inappropriate must be clearly defined.
Consequences may include employee reprimand or probation or a progressional
series of both.

REPRIMAND
Employee reprimand is the first step in disciplinary procedure. Reprimands can
be either verbal or written. If the warning is verbal, it should still be documented
in the employees personnel file. Written employee reprimands serve as a formal
notice to the employee for either a more serious or repetitious infraction. All
unsatisfactory job performances and violations of Company Policies and
Procedures should follow a disciplinary sequence outline, unless otherwise stated
in the Employee Handbook as immediate dismissal.

DISCIPLINARY SEQUENCE

Verbal warning
Written reprimand (usually third warning is cause of probation)
Suspension without pay
Specific probation period (failure to correct action results in termination)
Immediate termination

A sample Employee Reprimand is shown in Appendix A.

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PA RTS EXC E L L E N C E

Termination - Leave of Absence

INTRODUCTION
This Qualifier is addressed under the section titled Termination since it
pertains to temporary separations and occasionally results in permanent
separations.

NECESSITY OF POLICY
Its a predictable occurrence that two out of three employees will experience a
Leave of Absence for one reason or another during their working life. For
purposes of providing employment security and details of an employees
entitlements, it is important that your Dealership have a policy relating to Leaves
of Absence.
As stated previously, a Leave of Absence is the temporary separation of an
employee. The permissible reasons for leaves depend upon two factors, statutory
laws and Dealership policies. Statutory laws are enacted to protect the rights of
employees. They usually address medical leaves (including maternity), jury duty,
and military duty. Other types of leave including medical leave, educational leave
and other special leaves, are offered optionally by the Dealership. Special leaves
should include the disclaimer at Managements discretion. Reasons for leave
should be clearly defined and stated in both the Policies and Procedures Manual
and the Employee Handbook.

DURATION
The length of the Leave of Absence will vary according to its nature and critical
importance of the position left open. Suggested time lines should be outlined,
with the option to extend the leave at Managements discretion. Sample time
frames are listed below.
LEAVE OF ABSENCE DURATION

Medical Leave

1 year maximum
3 months prior to due date, plus 3 months after
delivery

Jury Duty

As required

Military Duty

As required

Extended Medical Leave

At doctors advisement, maximum 1 year extension

Educational Leave

1 year, renewable upon successful completion of


courses

Special Leave

At managements discretion

Maternity

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PERSONNEL DEV E LO P M E N T

Appendix A

PARTS DEPARTMENT
PERSONNEL FORMS
The forms contained in this Appendix have been arranged to correspond with
the sections of this Module that they pertain to. (Notation indicated at the top
of the page directly under the page header.) The individual forms can be utilised
by the Parts Manager in the day-to-day operation of the business.
Taken together, the forms represent the basis for a Policies and Procedures
Manual.

A-1

PA RTS EXC E L L E N C E

Appendix A - Introduction

A-2

PERSONNEL DEV E LO P M E N T

Appendix A - Job Description

JOB DESCRIPTION

Parts Manager

PREPARED BY

(TITLE)
DEPARTMENT Parts

Functions/Purpose

DATE 21 June 20

Responsibilities and Authority (Contd)

1. Acts as Manager of Parts Department.


2. Responsible that parts and accessories are available for
resale.
3. Provides customer satisfaction.
4. Contributes to dealership and profitability.

14.
15.

Responsibilities and Authority

16.

1. Be responsible for profit of Parts Department through sales


of parts and accessories. This is accomplished through use
of advertising and merchandising programmes as well as
having personnel capable and motivated to satisfy customer
needs and desires.
2. Manage Departmental expenses so profit is earned monthly.
3. Be responsible for establishing and maintaining Consumer
Relations policy: Wholesale customer follow-up, material
return policy, complaint handling, etc.
4. Use Personnel Management system that incorporates
dealership policies on recruiting, hiring and orientation.
5. Establish and maintain practices designed to train, develop,
and motivate Department employees.
6. Set clear standards for the handling of customers.
7. Establish and maintain inventory control system to meet
dealerships parts and accessories internal and warranty
requirements as well as retail and wholesale customers.
8. Be responsible for establishing and maintaining purchase
and ordering policy: Purchase order system, inventory
guides figures, order code status, etc.
9. Be responsible for establishing and maintaining warranty
scrap and core handling procedures: Location, documentation, material returns, designating personnel, etc.
10. Be responsible for establishing and maintaining inventory
storage system: Equipment, bin locations, bin numbering,
bin tags, etc.
11. Maintain Dealership equipment in effective working
condition. Establish equipment maintenance schedules
where necessary. Advise management on equipment needed
for Department.
12. Be responsible for establishing and maintaining shipping/
receiving policy: Wholesale routes, delivery timetables
check-in and inspection, etc.
13. Use inventory control system processing procedures and
management reports that permit prompt, complete, and

17.
18.
19.

accurate feedback of inventory condition. (Turnover,


GROII, obsolescence, part ageing, guide quantities, lost
sales, etc.)
Establish and maintain relationship with factory that results
in sound working arrangements.
Initiate housekeeping, safety, and security procedures that
result in safe and attractive working environment.
Use job classification work standards and job descriptions
to monitor and measure individual employees effectiveness.
This information is then fed back to employee on formal
appraisal.
Maintain catalogues, price schedules, and other technical
bulletins that are convenient to employees needing them.
Establish and maintain good working relations with other
departments to reduce conflict and maximise dealer
profitability.
Prepare for and participate in meetings with management
and other department heads.

Relationships
1. Reports to: Owner (General Manager, or Parts and Service
Director).
2. Supervises: All personnel and managers in the Parts
Department.

Standards of Performance
1. Parts Department sales meet monthly objectives established
by Dealer and Parts Management.
2. Adjustment-P & A Inventory is +/
% of
total inventory.
3. Parts availability is
%.
4. Parts true turnover is 3 times per year.
5. Stock order purchases are a minimum of 80% of total
purchases.
6. Gross return on inventory invested (GROII) is
%.
7. Parts returns are no more than
per year.
8. Lost time accidents total up to no more than
per year.
9. Cars tied up awaiting parts remain below
per 100 Repair Orders.

A-3

PA RTS EXC E L L E N C E

Appendix A - Job Description

JOB DESCRIPTION

Assistant Parts Manager

PREPARED BY

(TITLE)
DEPARTMENT Parts

Functions/Purpose

DATE 21 June 20

Responsibilities and Authority (Contd)


12. Protect dealership tools and equipment from abuse and see
that proper maintenance is carried out. Recommend
changes and improvements in equipment to Parts Manager.
13. Maintain records as directed by Parts Manager.
14. Participate with management in resolution of customer and
interdepartmental complaints by identifying their causes
and preventing re-occurrence.

1. Acts as Manager of Parts Department in absence of Parts


Manager.
2. Helps dealership management achieve parts and accessories
availability and customer satisfaction.
3. Aids Parts Manager in achieving Department goals and
objectives.

Responsibilities and Authority


1. Maintain an efficient inventory control system by having
counterpersons complete information on Repair Orders
and Counter Tickets. Information recorded should either
indicate a sale or generate a special order for parts needed
but not in stock. Advise Parts Manager when individual
part numbers need to be added to inventory.
2. Help counterpersons locate correct part numbers and prices
in catalogue. Use such instances as training opportunities to
teach counterpersons.
3. Identify training needs of counterpersons, wholesale salespersons, inventory control clerk, stockers, and drivers and
recommend training to Parts Manager.
4. Approve and check all part returns to be sure they comply
with dealership return policy and parts are in saleable
condition.
5. Maintain records on all customer and interdepartmental
complaints, so types and personnel involved can be
identified.
6. Participate in the hiring and orientation of parts employees
as directed by Parts Manager.
7. Formulate and execute plans with approval of Parts
Manager.
8. Assist the Parts Manager in the maintenance of
performance records on individual employees and
evaluation sessions as directed.
9. Control excessive use of shop and office supplies by
department employees.
10. Supervise housekeeping in Parts Department to assure that
it is clean and attractive to both customers and employees.
11. Take all necessary measures to assure that safety regulations,
fire and accident prevention regulations, and inventory
security procedures are obeyed.

Relationships
1. Reports directly to Parts Manager.
2. Supervises counter salespersons, stockers, drivers.
3. Maintains close working relationships with inventory
control clerk and wholesale salespersons. Contact assures
complete and accurate status of inventory and wholesale
customers.

Standards of Performance
1. Parts and Accessory sales of $
are generated
per counterperson/month.
2. Stock order purchases are a minimum of 80% of total
purchases.
3. Lost time accidents total up to no more than
per 100 Repair Orders.
4. Cars tied up awaiting parts remain below
per 100 Repair Orders.
5. Expenditures for shop and office supplies meet objectives
established by Assistant Parts Manager and Parts Manager.
6. Unannounced inspections of Parts Department show it to
be clean, neat, attractive and free of clutter.

A-4

PERSONNEL DEV E LO P M E N T

Appendix A - Job Description

JOB DESCRIPTION

Wholesale Salesperson

(TITLE)
DEPARTMENT Parts

PREPARED BY

Functions/Purpose

DATE 21 June 20

Responsibilities and Authority (Contd)

1. Acts as principal contact between dealership and wholesale


customers for the sale and delivery of parts and accessories.
2. Primary goals are to provide customer satisfaction and
maximise dealership sales of parts and accessories.

14. Be up-to-date on product information on all vehicles sold


by the dealership.
15. Refer leads and prospects for vehicle sales to new and used
car sales departments.

Responsibilities and Authority


1. Treat wholesale customers in accordance with dealership
policies.
2. Sell parts and accessories to wholesale customers in person,
by telephone, and by other methods.
3. Write legible and complete wholesale order by asking basic
questions of application to identify correct part numbers
(i.e., make, model, year, usage, VIN, colour, options, etc.)
4. Secure agreement from wholesale customer at the time
order is taken covering cost, time, method of delivery and
method of payment. (Particularly critical if first-time or
occasional customer.)
5. Interpret and explain parts warranty and dealership return
policy to wholesale customers.
6. Get authorisation from wholesale customer when price
increases or transportation charges cause original price
estimates to be exceeded.
7. Inform wholesale customer when delivery schedule cannot
be met.
8. Enter all wholesale orders into order processing and delivery
system in the order in which they are received.
9. Identify orders that require special handling, such as
emergency order, will call, special problem, incorrect parts,
or NPN.
10. Follow-up on status of orders to assure that delivery will be
made as promised.
11. Contact wholesale customers at least weekly to solicit parts
business and follow-up on service to assure customer
satisfaction.
12. Answer telephone parts inquiries.
13. Keep Parts Manager informed of all problems and potential
problems involving wholesale customers.

A-5

Relationships
1. Reports directly to Parts Manager.
2. Supervises no one.
3. Maintains close working relationships with assistant parts
manager, stockers, and driver on the preparation and
delivery of parts to wholesale customers.

Standards of Performance
1. Wholesale sales of $
are generated per
month.
2. No complaints are received from wholesale customers about
the service they receive.
3. No complaints are received from inventory control clerks,
stockers, and drivers regarding legibility of wholesale part
orders.
4. No more than 5% bad debt experience with credit
customers.

PA RTS EXC E L L E N C E

Appendix A - Job Description

JOB DESCRIPTION

Counter Salesperson

PREPARED BY

(TITLE)
DEPARTMENT Parts

Functions/Purpose

DATE 21 June 20

Responsibilities and Authority (Contd)

1. Acts as principal contact between the Parts Department and


both internal and retail customers for the sale of parts and
accessories.
2. Primary goals are to provide customer satisfaction and
maximise dealership sales of parts.

Responsibilities and Authority


1. Provide fast and courteous service to both technicians and
retail customers.
2. List and price out on both Repair Orders and Counter
Tickets.
3. List and price out all sublet repair work on Repair Orders.
4. Provide necessary information for special and emergency
orders to inventory control clerk if part is not in stock.
5. Maintain customer backorder file.
6. Write purchase orders for parts and sublet work as needed
from outside suppliers and get management approval.
7. Maintain record of all special order parts and notify person
who authorised the order of receipt.
8. Make sure technicians turn in all defective parts necessary
for warranty or scrap and tag appropriately.
9. Help scrap parts held for factory claims with factory
representative.
10. Help maintain parts catalogues, price schedule, and other
technical information and bulletins.
11. Answer telephone in accordance with dealership guidelines.
Solicit orders or answer questions as appropriate.
12. Report all lost sales daily to inventory control clerk.
13. Keep work area clean, free of debris, safe, and put away
loose stock.
14. Perform other duties and tasks as directed by management.

Relationships
1. Reports directly to Assistant Parts Manager.
2. Supervises no one.
3. Maintains close working relationship with technicians and
service advisors to assure good interdepartmental relations
and customer satisfaction.

Standards of Performance
1. Counter retail sales of $
are generated
per month.
2. Internal sales of $
are generated per month.
3. No complaints are received from customers or other
departments about treatment or assistance given.
4. Customers, service advisors, technicians, and the business
office can read parts information on Counter Ticket or
Repair Order.
5. No warranty charge-backs due to missing defective parts or
accessories needed to be scrapped.
6. All deadlines and promises are kept for emergency and
special ordered parts.
7. Is proficient in the use of parts catalogues and location of
current stocking bin.

A-6

PERSONNEL DEV E LO P M E N T

Appendix A - Job Description

JOB DESCRIPTION

Stocker

PREPARED BY

(TITLE)
DEPARTMENT Parts

Functions/Purpose

DATE 21 June 20

Responsibilities and Authority (Contd)

1. Receives and ships parts and accessories as directed.


2. Maintains physical inventory as necessary.

Responsibilities and Authority


1. Conduct shipping and receiving activities using dealership
procedures.
2. Report all overages and shortages to inventory control clerk.
3. Stock all parts and accessories received for stock in correct
bin and/or locations.
4. Control all special and emergency orders by tagging and
notifying appropriate person.
5. Ship all parts and accessories in accordance with shipping
instructions.
6. Maintain physical inventory by keeping stock in proper
location, saleable condition, and free of safety hazards.
7. Maintain bins, racks, and other equipment. Notify
management of needed repairs.
8. Keep bin labels and location designations accurate and
up-to-date.
9. Run bin spot checks as directed.
10. Control parts inventory consigned to body shop.

Relationships
1. Reports directly to Assistant Parts Manager.
2. Supervises no one.
3. Maintains close working relationship with inventory
control clerk, wholesale salespersons, counter salespersons,
and drivers on the shipping and receiving of parts.

Standards of Performance
1. Dealerships shipping and receiving procedures are adhered to.
2. Promised delivery times to customers are kept.
3. Inventory is organised and stocked in correct locations with
no more than
parts found in wrong spot
monthly.
4. 100% of bin labels are accurate and up-to-date.
5. All emergency and special orders are tagged with
notification given to appropriate person.
6. All consigned inventory to body shop is accounted for.
7. Accurate information and documentation is provided to
inventory control clerk for submission of transportation or
shortage claims.

A-7

PA RTS EXC E L L E N C E

Appendix A - Job Description

JOB DESCRIPTION

Driver

PREPARED BY

(TITLE)
DEPARTMENT Parts

Functions/Purpose

DATE 21 June 20

Responsibilities and Authority (Contd)

1. Drives truck for the purpose of pick-up and delivery.


2. Maintains delivery truck in safe and operable condition.
3. Primary goals are to provide customer satisfaction and
represent the dealership in a professional manner.

Responsibilities and Authority


1. Treat customers in accordance with dealership policies.
2. Provides fast and efficient delivery and pick-up of both
parts and sublet repairs.
3. Minimise vehicle downtime by proper maintenance and
inform management of potential equipment problems.
4. Load truck in such a way as to eliminate damage to sheet
metal and other fragile parts.
5. Inspect shipments at loading and unloading for damage and
quantity; make appropriate notations on delivery receipt.
6. Organise schedule of deliveries to maximise efficiency and
post schedule to make self available for contact.
7. Call dealership hourly and check for additional deliveries
and pick-ups within area.
8. Process parts return in accordance with warranty and
dealership policy.
9. Maximise sales effort of Parts Department by affording
good service, suggesting related items, and informing
management of new business.

Relationships
1. Reports directly to Assistant Parts Manager.
2. Supervises no one.
3. Maintains close working relationship with counter salespersons and wholesale salespersons to assure proper
handling of customers and suppliers.

Standards of Performance
1. No complaints are received from customers or suppliers
about the service they receive.
2. Details of dealerships parts return policy are adhered to.
3. Inventory control clerk can read and understand
information written on delivery receipts.
4. Delivery truck experiences no downtime, except for
preventative maintenance.
5. Sheet metal and other fragile parts are received by
customers and suppliers in good condition.
6. Hourly contact with dealership is maintained.

A-8

PERSONNEL DEV E LO P M E N T

Appendix A - Job Description

JOB DESCRIPTION

Inventory Control Clerk

PREPARED BY

(TITLE)

DEPARTMENT Parts

Functions/Purpose

DATE 21 June 20

Responsibilities and Authority (Contd)

1. Maintains inventory control system.


2. Provides inventory management reports.
3. Primary goal is to provide customer satisfaction by assuring
parts availability.

Responsibilities and Authority


1. Achieve and maintain parts inventory accuracy.
2. Achieve and maintain maximum availability with
minimum dollar investment.
3. Post all receipts and sales daily.
4. Post all ancillary information daily (such as, part number
changes, price changes, lost sales, shortages, overages, bin
and location changes, etc.)
5. Transmit all parts orders after selecting the appropriate
order status code.
6. Generate management reports as requested (such as, Lost
Sales, Backorders, Emergency and Special Orders Status,
Part Ageing, Obsolescence, etc.)
7. Inform management of existing or potential inventory
problems (such as, stock outs, too high or too low guide
figures, obsolescence, NPNs, back orders and other delays
encountered, etc.)

Relationships
1. Reports directly to Parts Manager.
2. Supervises no one.
3. Maintains close working relationships with all parts
personnel to assure complete and accurate inventory
information.

Standards of Performance
1. Dollar value of inventory control system and physical
inventory are within
%.
2. True turnover is
times per year.
3. Stock outs, shortages, and incorrect bin locations occur no
more than
times each month.
4. Stock order purchases are accurate and on time.
5. Computer downtime occurs a maximum of
times per year.
6. Cars tied up awaiting parts remain below
per 100 Repair Orders.

A-9

PA RTS EXC E L L E N C E

Appendix A - Hiring

APPLICATION FOR EMPLOYMENT


APPLICANTS ARE CONSIDERED FOR ALL POSITIONS WITHOUT REGARD TO RACE,
COLOUR, RELIGION, SEX, NATIONAL ORIGIN, AGE, MARITAL OR VETERAN STATUS,
OR THE PRESENCE OF A NON-JOB-RELATED MEDICAL CONDITION OR HANDICAP.

(PLEASE PRINT)
DATE OF APPLICATION
POSITION(S) APPLIED FOR
REFERRAL SOURCE:

ADVERTISEMENT

EMPLOYMENT AGENCY

NAME

WALK-IN

LAST

ADDRESS

NUMBER

TELEPHONE (

FIRST
STREET

FRIEND

RELATIVE

OTHER

MIDDLE
CITY

STATE

ZIP CODE

SOCIAL SECURITY NUMBER

AREA CODE

IF EMPLOYED AND YOU ARE UNDER 18, CAN YOU FURNISH A WORK PERMIT?
YES

NO

HAVE YOU FILED AN APPLICATION HERE BEFORE?


YES

NO

IF YES, GIVE DATE

HAVE YOU EVER BEEN EMPLOYED HERE BEFORE?


YES

NO

IF YES, GIVE DATE

ARE YOU EMPLOYED NOW?


YES

NO

MAY WE CONTACT YOUR PRESENT EMPLOYER?


YES

NO

ARE YOU PREVENTED FROM LAWFULLY BECOMING EMPLOYED IN THIS COUNTRY


BECAUSE OF VISA OR IMMIGRATION STATUS?
YES

NO

(PROOF OF CITIZENSHIP OR IMMIGRATION STATUS


MAY BE REQUIRED UPON EMPLOYMENT)

ON WHAT DATE WOULD YOU BE AVAILABLE FOR WORK?


ARE YOU AVAILABLE TO WORK:

FULL-TIME

PART-TIME

SHIFT WORK

TEMPORARY

ARE YOU ON A LAY OFF AND


SUBJECT TO RECALL?

YES

NO

CAN YOU TRAVEL IF A JOB REQUIRES IT?

YES

NO

HAVE YOU BEEN CONVICTED OF A


FELONY WITHIN THE LAST 7 YEARS?

YES

NO

IF YES, PLEASE EXPLAIN

Page 1 of 4

A-10

PERSONNEL DEV E LO P M E N T

Appendix A - Hiring

DO YOU HAVE ANY PHYSICAL, MENTAL OR MEDICAL


IMPAIRMENT OR DISABILITY THAT WOULD LIMIT
YOUR JOB PERFORMANCE FOR THE POSITION FOR
WHICH YOU ARE APPLYING?

YES

NO

YES

NO

IF YES, PLEASE EXPLAIN:


ARE THERE WORKPLACE CONDITIONS WHICH
WOULD ASSURE BETTER JOB PL ACEMENT AND/OR
ENABLE YOU TO PERFORM YOUR JOB TO YOUR
MAXIMUM CAPABILITY?
IF YES, PLEASE INDICATE:
INDICATE WHAT FOREIGN LANGUAGES YOU SPEAK, READ AND/OR WRITE:
FLUENTLY

GOOD

FAIR

SPEAK
READ
WRITE
LIST PROFESSIONAL, TRADE, BUSINESS OR CIVIC ACTIVITIES AND OFFICES HELD.
(EXCLUDE THOSE WHICH INDICATE RACE, COLOUR, RELIGION, SEX OR NATIONAL
ORIGIN)

GIVE NAME, ADDRESS AND TELEPHONE NUMBER OF THREE REFERENCES WHO ARE
NOT RELATED TO YOU AND ARE NOT PREVIOUS EMPLOYERS.

Page 2 of 4

A-11

PA RTS EXC E L L E N C E

Appendix A - Hiring

EMPLOYMENT EXPERIENCE
START WITH YOUR PRESENT OR LAST JOB. INCLUDE MILITARY SERVICE ASSIGNMENTS AND VOLUNTEER ACTIVITIES. EXCLUDE ORGANISATION NAMES WHICH
INDICATE RACE, COLOUR, RELIGION, SEX OR NATIONAL ORIGIN.

EMPLOYER

DATES EMPLOYED
FROM
TO

WORK PERFORMED

ADDRESS
JOB TITLE

HOURLY RATE/SALARY
STARTING
FINAL

SUPERVISOR
REASON FOR LEAVING

2.

EMPLOYER

DATES EMPLOYED
FROM
TO

WORK PERFORMED

ADDRESS
JOB TITLE

HOURLY RATE/SALARY
STARTING
FINAL

SUPERVISOR
REASON FOR LEAVING

3.

EMPLOYER

DATES EMPLOYED
FROM
TO

WORK PERFORMED

ADDRESS
JOB TITLE

HOURLY RATE/SALARY
STARTING
FINAL

REASON FOR LEAVING

4.

EMPLOYER

DATES EMPLOYED
FROM
TO

WORK PERFORMED

ADDRESS
JOB TITLE

HOURLY RATE/SALARY
STARTING
FINAL

SUPERVISOR
REASON FOR LEAVING

IF YOU NEED ADDITIONAL SPACE, PLEASE CONTINUE ON A SEPARATE SHEET OF PAPER.

SPECIAL SKILLS AND QUALIFICATIONS


SUMMARISE SPECIAL SKILLS AND QUALIFICATIONS ACQUIRED FROM
EMPLOYMENT OR OTHER EXPERIENCE.

Page 3 of 4

A-12

PERSONNEL DEV E LO P M E N T

Appendix A - Hiring

EDUCATION
ELEMENTARY/
PRIMARY

HIGH
SCHOOL

COLLEGE/
UNIVERSITY

4 5 6 7 8

9 10 11 12

GRADUATE/
PROFESSIONAL

SCHOOL NAME
YEARS COMPLETED
(CIRCLE)

DIPLOMA/DEGREE
DESCRIBE COURSE
OF STUDY
DESCRIBE SPECIALISED
TRAINING, APPRENTICESHIP
SKILLS AND EXTRA
CURRICULAR ACTIVITIES
HONORS RECEIVED:

STATE ANY ADDITIONAL INFORMATION YOU FEEL MAY BE HELPFUL TO US IN


CONSIDERING YOUR APPLICATION

AGREEMENT
I CERTIFY THAT ANSWERS GIVEN HEREIN ARE TRUE AND COMPLETE TO THE BEST OF MY
KNOWLEDGE. I AUTHORISE INVESTIGATION OF ALL STATEMENTS CONTAINED
IN THIS APPLICATION FOR EMPLOYMENT AS MAY BE NECESSARY IN ARRIVING AT
EMPLOYMENT. I UNDERSTAND THAT THIS APPLICATION IS NOT AND IS NOT
INTENDED TO BE A CONTRACT OF EMPLOYMENT.
IN THE EVENT OF EMPLOYMENT, I UNDERSTAND THAT FALSE OR MISLEADING
INFORMATION GIVEN IN MY APPLICATION OR INTERVIEW MAY RESULT IN DISCHARGE. I
UNDERSTAND, ALSO, THAT I AM REQUIRED TO ABIDE BY ALL RULES AND REGULATIONS
OF THE COMPANY.
SIGNATURE

DATE

FOR PERSONNEL DEPARTMENT USE ONLY


ARRANGE INTERVIEW

YES

NO

YES

NO

REMARKS

EMPLOYED
JOB TITLE
BY

HOURLY/RATE

NAME AND TITLE

DATE OF
EMPLOYMENT
DEPARTMENT
DATE

Page 4 of 4

A-13

PA RTS EXC E L L E N C E

Appendix A - Hiring

JOB INTERVIEW REPORT

POSITION

INTERVIEWER

DEPARTMENT

DATE

INTERVIEWER

INTERVIEW FURTHER?

YES

NO

APPEARANCE

BEARING

INDIFFERENCE
TO ATTIRE
& GROOMING

NO BEARING,
LACKS CONFIDENCE,
SLOVENLY POSTURE

CARELESS
IN ATTIRE,
POOR GROOMING

OFTEN APPEARS
UNCERTAIN,
POOR POSTURE

FUNCTIONAL
ATTIRE, NEATLY
GROOMED

HOLDS
SELF WELL, SEEMS
CONFIDENT

SPEAKS WELL,
EXPRESSES IDEAS
ADEQUATELY

WELL
GROOMED

SURE OF SELF,
REFLECTS
CONFIDENCE

SPEAKS, THINKS
CLEARLY, WITH
CONFIDENCE

IMMACULATE
ATTIRE
& GROOMING

HIGHLY
CONFIDENT,
INSPIRES OTHERS,
ASSERTS PRESENCE

EXCEPTIONAL
SPEAKS CLEARLY,
CONCISELY WITH
CONFIDENCE IDEAS
WELL THOUGHT OUT

JOB
KNOWLEDGE

MOTIVATION

PERSONALITY

NONE AS
PERTAINS TO
THIS POSITION

NONE, APATHETIC,
INDIFFERENT,
DISINTERESTED

UNPLEASANT

WILL NEED
CONSIDERABLE
TRAINING

DOUBTFUL
INTEREST
IN POSITION

SLIGHTLY
OBJECTIONABLE

BASIC, BUT
WILL LEARN
ON THE JOB

SINCERE DESIRE
TO WORK

LIKEABLE

STRONG INTEREST
IN POSITION,
ASKS QUESTIONS

PLEASING

WELL VERSED IN
POSITION, LITTLE
TRAINING NEEDED
EXTREMELY WELL
VERSED, ABLE TO
WORK WITHOUT
FURTHER TRAINING

HIGHLY
MOTIVATED,
EAGER TO WORK,
ASKS MANY
QUESTIONS

EXPRESSION
UNCOMMUNICATIVE
CONFUSED
THOUGHTS, POOR
VOCABULARY
POOR SPEAKER,
HAZY THOUGHTS,
IDEAS

EXTREMELY
PLEASING
CHARMING
INDIVIDUAL

OVERALL IMPRESSION:
UNSATISFACTORY

MARGINAL

SATISFACTORY

ADDITIONAL COMMENTS

A-14

VERY GOOD

EXCELLENT

PERSONNEL DEV E LO P M E N T

Appendix A - Hiring

INTERVIEWING TIPS
ASSURE PRIVACY avoid interruptions when interviewing an applicant.
PUT APPLICANT AT EASE be warm and friendly, create a positive
atmosphere.

INTERRUPT ONLY FOR A SPECIFIC PURPOSE interrupt to test a


reaction. Needless interruption may cause loss of information.

ASK ONE QUESTION AT A TIME.


ASK OPEN-ENDED QUESTIONS those that require more than a simple

yes or no. Get them to open up with questions like How do you feel about

REPEAT QUESTIONS IF NECESSARY rephrase and probe to get definite,


accurate answers.

PACE YOUR QUESTIONS TO PERMIT THOUGHTFUL ANSWERS

avoid inquisitions or the third degree; you need accurate, definite information.

BE RECEPTIVE TO HESITATION AND GIVE TIME FOR FULL


RESPONSES let the interviewee flounder but finish; use yes,
I understand, etc.

AVOID LEADING QUESTIONS WHERE THE ANSWER IS


IMPLIED leading questions will not get the truth.

CONTROL THE INTERVIEW BUT DO NOT LEAD avoid irrelevant


conversation; pull the conversation back from side issues.

KEEP YOUR OBJECTIVES IN MIND you want to obtain as much

information as possible that will lead you to making a good hiring decision.

DIFFERENTIATE BETWEEN FACTS, ATTITUDES AND OPINIONS


get behind the words expressed for true meaning; ask Why, In what way,
How is that so, to get true meaning.

DO NOT INFER ONE FACT FROM ANOTHER check it out with


further questions.

OBSERVE study appearance, dress, personal habits, body language, etc.


TELL ABOUT JOB AFTER YOU HAVE INTERVIEWED APPLICANT
explain job requirements and hours; cover compensation and benefits.

DETERMINE WHAT THE APPLICANT IS LOOKING FOR FROM


YOU find out his/her ambitions, goals, etc.

KNOW YOUR FAIR EMPLOYMENT LAWS and do not make preemployment inquiries that are not permissible.

LET THE APPLICANT KNOW WHERE SHE/HE STANDS if still


under consideration, tell him/her what comes next and when.

A-15

PA RTS EXC E L L E N C E

Appendix A - Hiring

TELEPHONE REFERENCE CHECK


APPLICANT

COMPANYS NAME

CONTACTED

TITLE

CONTACTED BY

TELEPHONE

1. EMPLOYMENT DATES

FROM

POSITION

DATE
TO

2. APPLICANTSS POSITION TITLE


3. INFORMATION PROVIDED
QUALITY OF WORK

QUANTITY OF WORK

ATTENDANCE

4. WORKING RELATIONSHIPS
5. WHY DID THEY LEAVE?

6. ELIGIBILITY TO REHIRE
IF NO/WHY?
7. ADDITIONAL COMMENTS

A-16

YES

NO

PERSONNEL DEV E LO P M E N T

Appendix A - Hiring

EMPLOYMENT NOTICE

DATE

NAME
POSITION

DATE HIRED
PAY

DEPARTMENT
ASSIGNED CLOCK NUMBER

SALARY
HOURLY

DUTIES

SUPERVISOR
ORIENTATION ASSIGNED
COMMENTS

EMPLOYEES SIGNATURE
DATE
MANAGERS APPROVAL
DATE

A-17

PA RTS EXC E L L E N C E

Appendix A - Performance Evaluation

A-18

PERSONNEL DEV E LO P M E N T

Appendix A - Performance Evaluation

A-19

PA RTS EXC E L L E N C E

Appendix A - Performance Evaluation

A-20

PERSONNEL DEV E LO P M E N T

Appendix A - Performance Evaluation

EXCELLENCE REPORT
Employee

OCCURRENCE OF EXCELLENCE

Position

Date

Department

Time

Clock Number

Location

Supervisors Remarks

Employee Remarks

Action Taken

Employee Signature

Date

Supervisor Signature

Date

Submitted By

Date

A-21

PA RTS EXC E L L E N C E

Appendix A - Performance Evaluation

A-22

PERSONNEL DEV E LO P M E N T

Appendix A - Compensation Plans

PAYROLL CHANGE NOTICE


To: Payroll Department
Please enter the following change(s) in your records to take
Effect
Employee
Social Security No.
Clock No.
The Change(s)
Check all applicable boxes
From
Department
Job

To

Shift
Rate

Reason For The Change(s)


Hired

Probationary Period Completed

Re-Hired

Length of Service Increase

Promotion

Reevaluation of Existing Job

Demotion

Resignation

Transfer

Retirement

Merit Increase

Layoff

Union Scale

Discharge

Leave of Absence from


Other (explain)

Until

Change Authorised By

Date

Change Approved By

Date

A-23

PA RTS EXC E L L E N C E

Appendix A - Compensation Plans

PERSONAL COMPENSATION SUMMARY


Employee
Department

Clock No.

As important as your Paycheque is, it is only a part of your total compensation


from this dealership. Adding significantly to your compensation as well as your
security and protection, and that of your family are the best combined benefits
in the retail automotive industry. We are pleased to provide you with this
updated summary of your benefits and their net worth to you. Your continuing
contributions to the success of this dealership help to make these outstanding
benefits possible.

Health Care

Retirement Benefits

Basic Medical:

Social Security:

Explanation of Coverages

Explanation of payments
and age requirements

Non-Contributory:
Explanation of payments
and age requirements

Dental:

Contributory:
Explanation of Coverages

Explanation of payments
and age requirements

Disability Income

Vision:
Explanation of Coverages

Major Medical:

Explanation of payments
and duration

Layoff:

Explanation of Coverages

Explanation of payments
and duration

A-24

PERSONNEL DEV E LO P M E N T

Appendix A - Compensation Plans

Stock Savings

Survivor Benefits (Contd.)

Non-contributory:

Social Security

Shares & Value

Amount and age of eligibility

Contributory

Life Insurance Non-contributory

Shares & Value

Amount and age of eligibility

Securities & Other Investments:

Life Insurance contributory:

Shares & Value

Amount and age of eligibility

Lump-Sum Payments:

Cash:

Non-Contributory Life

Value

Contributory Life
Stock Savings
Retirement (contributory)
Social Security

Total Value:

Profit Sharing

Total Shares & Value

Amount

Total:

Profit Sharing

Additional Benefits:
Accidental Death
Accidental Dismemberment

Earned Total:
Amount earned previous years

While on Company business


Total:

Amount

Total of Benefits
Earned Year to Date:
Amount earned and date payable

Salary
Incentives Earned
Cost of Benefits

Survivor Benefits
Retirement

Vacation & Holiday Time


Total:

Amount and age of eligibility

A-25

Amount

PA RTS EXC E L L E N C E

Appendix A - Communication

Page 1 of 2

AGENDA MANAGEMENT MEETING


Presiding:

Attending:

Date:
Major Topic:

Department

Notes:

Time

Discussion Leader

Subject

A-26

Purpose

Resolution

PERSONNEL DEV E LO P M E N T

Appendix A - Communication

Page 2 of 2

IMPLEMENTATION WORKSHEET MANAGEMENT MEETING


Team Leader:
Date:

Team Members:

Resolution:

Resources
Plan
Phases

Cost

Time
Frame

Equipment
Required

A-27

Physical
Space
Required

People
Involved

Impact on
Operations

PA RTS EXC E L L E N C E

Appendix A - Communication

AGENDA DEPARTMENTAL MEETING

Manager:
Date:
Major Topic:

Attending

Notes:
Notes:

Review: Financial Results

Review: Non-financial Results

Time:

Time:

Discussion: Major Topic

Discussion: Other Topics

Time:

Time:
Time:
Time:
Time:

A-28

PERSONNEL DEV E LO P M E N T

Appendix A - Training and Development

SKILLS INVENTORY

DATE

RATING SCALE

EMPLOYEES

3=TRAINED, EXPERIENCED
2=TRAINED, NEEDS
EXPERIENCE
1=NEEDS TRAINING,
SOME EXPERIENCE
0=NEEDS TRAINING,
NEEDS EXPERIENCE
JOB SKILLS
1. PART IDENTIFICATION
2. PART NOMENCLATURE
3. CATALOGUE REFERENCING
4. PRICING AND INVOICING
5. ACCESSING COMPUTER DATA
6. INPUTTING COMPUTER DATA
7. RECEIVING ORDERS
8. SHIPPING ORDERS
9. SELLING
10. TELEPHONE HANDLING
11. DRIVING
12. PARTS AND BIN LOCATION
13. HOUSEKEEPING AND SAFETY
14. WARRANTY SCRAP HANDLING
15. CORE HANDLING
16. INVENTORY CONTROL
17.
18.
19.
20.

A-29

PA RTS EXC E L L E N C E

Appendix A - Training and Development

TRAINING & DEVELOPMENT PLAN


EMPLOYEE

DEPARTMENT

CLOCK NUMBER

POSITION

DATE

TYPE
EVALUATION

REGULAR OR SPECIAL

ACTIVITY SELECTION

*REASONS FOR
TRAINING

TRAINING NEEDS

FOLLOW-UP
COMPLETION
DATE

TRAINING/
DEVELOPMENT
ACTIVITY

LOCATION

* KEY A = TO CORRECT AN EXISTING PROBLEM


B = TO MAINTAIN SKILL
C = TO DEVELOP NEW SKILLS

A-30

PLANNED

ACTUAL

PERSONNEL DEV E LO P M E N T

Appendix A - Training and Development

TRAINING EVALUATION

EMPLOYEE

COURSE

CLOCK NUMBER

INSTRUCTOR

DEPARTMENT

DATE

POSITION

SPONSORED BY
YES NO

Were the objective of the course stated at the start?


Comments:
Were the objectives of the course met?
Comments:
Did the course cover the skills you needed to learn?
Comments:
Can you perform these skills now?
Comments:
Did you have an opportunity to practice the skills?
Comments:
Were you able to ask questions during the class?
Comments:
Was the instructors method of presentation conducive to your learning?
Comments:
Would you recommend this course for others?
Comments:
What did you like most about the course?
Comments:
What did you like least about the course?
Comments:

A-31

PA RTS EXC E L L E N C E

Appendix A - Termination

TERMINATION NOTICE

VOLUNTARY

INVOLUNTARY

TYPE:
TYPE:

REPORTED DATE
EFFECTIVE DATE

LAYOFF
LAYOFF

EMPLOYEE

RELEASE
RELEASE

POSITION

DISCHARGE
DISCHARGE

DEPARTMENT

IMMEDIATE
DISMISSAL
IMMEDIATE DISMISSAL

CLOCK NUMBER
REASON

BENEFITS TERMINATION SCHEDULE


HOSPITALISATION

DATE

DISABILITY

DATE

LIFE INSURANCE

DATE

PROFIT SHARING

DATE

OTHER

DATE

FINAL PAYCHEQUE CALCULATION


LAST PAY PERIOD DUE
VACATION
OTHER DUE
TOTAL DUE
CHEQUE NO.
DATE
I HAVE RECEIVED MY FINAL PAYCHEQUE, IN THE AMOUNT SHOWN ABOVE,
AS FULL PAYMENT FOR ALL AMOUNTS DUE ME FOR THE PERIOD OF MY
EMPLOYMENT.

EMPLOYEE SIGNATURE
SUPERVISOR SIGNATURE

WITNESS

A-32

PERSONNEL DEV E LO P M E N T

Appendix A - Termination

EXIT INTERVIEW

DATE

EMPLOYEE
POSITION
DEPARTMENT
CLOCK NUMBER

DATE HIRED
DATE OF SEPARATION
FORWARDING ADDRESS

REASON FOR SEPARATION


A. RESIGNATION:

B. DISCHARGE:

C. LAYOFF:

DISLIKED TYPE
OF WORK

INABILITY TO
HANDLE JOB

REDUCTION IN
WORK FORCE

DISSATISFIED WITH WAGES

INEFFICIENT

TEMPORARY WORK

UNSATISFACTORY
WORKING CONDITIONS

UNCOOPERATIVE

D. RETIREMENT

DISLIKED SUPERVISOR
SECURED BETTER
POSITION
BUSINESS FOR SELF

RULES VIOLATION
ABSENTEEISM OR
TARDINESS
INSUBORDINATION

AGE
MEDICAL
EARLY

OTHER

PHYSICAL CONDITION
RETURNING TO SCHOOL
FAMILY CIRCUMSTANCES
LEAVING THE CITY
OTHER

NEW EMPLOYER
LOCATION
NATURE OF WORK
PAY

HOURS

WHEN WAS EMPLOYEE NOTIFIED


HOW WAS EMPLOYEE NOTIFIED
WAS EMPLOYEE OFFERED A TRANSFER
TO WHICH DEPARTMENT
WHY WAS TRANSFER REFUSED
EMPLOYEE RATING:

YES

SATISFACTORY FOR REHIRE


NOT SATISFACTORY FOR REHIRE

A-33

NO

PA RTS EXC E L L E N C E

Appendix A - Termination

PROBATIONARY NOTICE

DATES

ON

EMPLOYEE
POSITION
DEPARTMENT
CLOCK NUMBER

TYPE OF PROBATION:
NEW HIRE
VIOLATION OF POLICIES
AND PROCEDURES
UNSATISFACTORY
PERFORMANCE

PROBATIONARY CAUSE

PREVIOUS DISCIPLINE

DATE
TIME
LOCATION
DETAILS

NONE
VERBAL REPRIMAND
NUMBER:
DATES:
WRITTEN REPRIMAND
NUMBER:
DATES:

WHAT IMPROVEMENT IS NECESSARY?

HOW MUCH IMPROVEMENT IS NECESSARY?

ACTION PLAN:

SUPERVISOR REMARKS:

EMPLOYEE REMARKS:

SIGNATURES: EMPLOYEE
SUPERVISOR

DATE
DATE

I HAVE READ THIS PROBATIONARY


NOTICE AND UNDERSTAND
ITS CONSEQUENCES
MANAGEMENT APPROVAL

DATE

A-34

OFF

PERSONNEL DEV E LO P M E N T

Appendix A - Termination

EMPLOYEE REPRIMAND

VERBAL

WRITTEN

DATE

NATURE OF REPRIMAND:
EMPLOYEE
POSITION
DEPARTMENT
CLOCK NUMBER

MISCONDUCT
ATTITUDE
TARDINESS
OTHER

OCCURRENCE OF VIOLATION
DATE
TIME
LOCATION

FREQUENCY OF VIOLATION
1ST WARNING
2ND WARNING
3RD WARNING

SUPERVISOR REMARKS:

EMPLOYEE REMARKS:

NOTE: NO EMPLOYEE REMARKS WILL CONSTITUTE ACCEPTANCE


AND AGREEMENT OF REPRIMAND AS STATED.
ACTION TAKEN:

SIGNATURES: EMPLOYEE

DATE

SUPERVISOR

DATE

I HAVE READ THIS REPRIMAND


AND UNDERSTAND IT AND
ITS CONSEQUENCES.
MANAGEMENT APPROVAL

DATE

A-35

PA RTS EXC E L L E N C E

Appendix A - Termination

SUPERVISORS CHECKLIST FOR EFFECTIVE DISCIPLINE


COMPLETE BEFORE TAKING ACTION

INCIDENT
EMPLOYEE(S) INVOLVED
WHAT HAPPENED? ACCURATE STATEMENT:

WHAT IS IT YOU WANT TO CORRECT?

HOW DID IT HAPPEN?

WHAT ARE THE FACTS? BE SPECIFIC. NO OPINIONS:

HAS THE EMPLOYEE HAD A CHANCE TO TELL HIS OR HER SIDE OF


THE STORY?

WAS THE EMPLOYEE AWARE OF THE RULE OR PROCEDURE? YES

NO

WAS THE RULE PUBLISHED IN WRITING?

YES

NO

WAS IT PROPERLY POSTED AND COMMUNICATED?

YES

NO

YES

NO

YES

NO

ANY EVIDENCE OF THIS VIOLATION BEING OVERLOOKED? YES

NO

DID THE EMPLOYEE HAVE ANY PREVIOUS WARNING?

NO

WAS THE RULE/PROCEDURE STATED CLEARLY,


EASY TO UNDERSTAND?
HOW LONG WAS THE RULE IN EFFECT?
HOW CONSISTENTLY IS THE RULE ENFORCED?
WHAT HAS BEEN DONE IN SIMILAR CASES?
IS THIS EMPLOYEE BEING SINGLED OUT?

YES

WHAT PREVIOUS CORRECTIVE ACTION WAS TAKEN WITH THE


EMPLOYEE BEFORE THIS INCIDENT?
WHAT IS THE EMPLOYEES PAST RECORD?

CAN YOU BACK UP THIS RECORD WITH FACTS?

YES

NO
Page 1 of 2

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PERSONNEL DEV E LO P M E N T

Appendix A - Termination

WHAT IS APPROPRIATE AND JUSTIFIABLE DISCIPLINE?


INFORMAL WARNING
FORMAL WARNING
PLACE ON PROBATION
LAYOFF WITHOUT PAY
DEMOTION
DISCHARGE
OTHER (SPECIFY)
DOES THE PUNISHMENT FIT THE VIOLATION?

YES

NO

WILL MEASURE PREVENT A REOCCURRENCE?

YES

NO

WILL MEASURE ENCOURAGE BETTER PERFORMANCE?

YES

NO

WHAT EFFECT WILL MEASURE HAVE ON THE INDIVIDUAL?

WHAT EFFECTWILL MEASURE HAVE ON OTHER MEMBERS OF THE WORK GROUP ?

WHAT PROBLEMS COULD RESULT IF THIS TYPE OF VIOLATION CONTINUED?


WHAT SPECIFIC ARTICLE OR SECTION OF THE LABOUR AGREEMENT IS INVOLVED?
CAN YOU EXPLAIN TO THE EMPLOYEE
WHY DISCIPLINE IS APPROPRIATE?

YES

NO

ARE YOU PREPARED TO HELP THE EMPLOYEE IN


PREVENTING SIMILAR OFFENCES IN THE FUTURE?

YES

NO

WHAT PERSONS SHOULD YOU CHECK WITH BEFORE TAKING DISCIPLINARY


ACTION?
YOUR SUPERVISOR

UNION REPRESENTATIVE

OTHERS

TAKE ACTION
DID YOU TALK TO THE EMPLOYEE IN PRIVATE?

YES

NO

HAS MEASURE HAD DESIRED EFFECT?

YES

NO

YES

NO

WHAT FOLLOW-UP ACTION IS NESCESSARY?

HAVE YOU RECORDED THIS INCIDENT?

THIS IS A CONFIDENTIAL RECORD. YOU MAY WISH TO MAKE IT A PAR


T
OF THE EMPLOYEES PERSONNEL FILE ATTACHED TO THE
DISCIPLINARY WARNING NOTICE COMPLETED FOR THE INCIDENT
.
Page 2 of 2

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PA RTS EXC E L L E N C E

Appendix A - Termination

ACCIDENT REPORT

FOR COMPANY USE ONLY

EMPLOYEE

DATE OF REPORT

POSITION

DATE OF ACCIDENT

DEPARTMENT

TIME OF ACCIDENT

CLOCK NUMBER

LOCATION OF ACCIDENT

AGE
SEX
LENGTH OF EMPLOYMENT

INJURIES INVOLVED

YES

NO

PROPERTY DAMAGE

YES

NO

REPORTED TO INSURANCE CO.


YES

NO

DATE REPORTED

DESCRIPTION OF ACCIDENT:

DETAIL OF WHAT EMPLOYEE WAS DOING AND WHAT TOOLS, EQUIPMENT, STRUCTURES OR FIXTURES WERE INVOLVED

NATURE OF INJURIES:

REPORT TO SUPERVISOR UNDELAYED


FIRST AID PROVIDED UNDELAYED
CAUSE OF ACCIDENT:

PREVENTION RECOMMENDATIONS:

PREVENTION FOLLOW-UP

SUPERVISORS SIGNATURE:
DEPARTMENT MANAGERS COMMENTS:

A-38

YES
YES

NO
NO

PERSONNEL DEV E LO P M E N T

Appendix A - Termination

LEAVE OF ABSENCE REQUEST FOR COMPANY USE ONLY


EMPLOYEE

NATURE OF REQUEST

POSITION

MEDICAL (INCLUDING MATERNITY)

DEPARTMENT

PERSONAL

CLOCK NUMBER

FUNERAL

DURATION OF LEAVE

JURY DUTY

START DATE

MILITARY

RETURN DATE

OTHER

BRIEF EXPLANATION OF REQUEST:

MEDICAL LEAVE ONLY:


DOCTOR
ADDRESS
CITY, STATE
TELEPHONE
NOTE: A DOCTORS CERTIFICATE IS REQUIRED
IF REASON FOR LEAVE OF ABSENCE IS MEDICAL

ACTION TAKEN:
APPROVED

REASON:

UNAPPROVED

LEAVE OF ABSENCE APPROVED


LEAVE OF ABSENCE UNAPPROVED

BY
DATE
BY
DATE

LEAVE IS WITH PAY

LENGTH OF TIME

LEAVE IS WITHOUT PAY

LENGTH OF TIME
Page 1 of 2

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PA RTS EXC E L L E N C E

Appendix A - Termination

LEAVE OF ABSENCE REQUEST


SENIORITY ACCRUES DURING LEAVE

LENGTH OF TIME

SENIORITY DOES NOT ACCRUE


DURING LEAVE

LENGTH OF TIME

VACATION ACCRUES DURING LEAVE

LENGTH OF TIME

VACATION DOES NOT ACCRUE


DURING LEAVE

LENGTH OF TIME

COMPANY PORTION OF GROUP


INSURANCE PREMIUM IS PAID

LENGTH OF TIME

COMPANY PORTION OF GROUP


INSURANCE PREMIUMS MUST BE
PAID BY EMPLOYEE IF INSURANCE
COVERAGE IS TO REMAIN IN EFFECT

LENGTH OF TIME

OTHER ACCRUALS AND NONACCRUALS

IF I DO NOT RETURN TO WORK ON THE EXPECTED DATE OF RETURN OR


DO NOT GIVE NOTICE OF THE NEED FOR AN EXTENSION OF THE LEAVE OF
ABSENCE, IT WILL BE ASSUMED THAT I VOLUNTARILY TERMINATE MY
EMPLOYMENT.
EMPLOYEE SIGNATURE:

DATE:

SUPERVISOR SIGNATURE:

DATE:

WITNESS:

DATE:

Page 2 of 2

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PERSONNEL DEV E LO P M E N T

Appendix B

EMPLOYEE HANDBOOK
EXAMPLE
Appendix B is an example of an Employee Handbook. It is a sample of an
Employee Handbook from an actual Dealership. It is not all-inclusive. The test
of this Module goes into more detail than what is provided in this example.

PA RTS EXC E L L E N C E

THIS PAGE INTENTIONALLY LEFT BLANK

PERSONNEL DEV E LO P M E N T

Appendix B - Employee Handbook

INTRODUCTION
Welcome to this Dealership! We are an Automobile Dealership
competing with many others, but we are a unique organisation. We have
established a reputation through honesty, competitive sales, and service practices.
We believe that good reputation and customer satisfaction are the answers to a
successful dealership. And we try to practice our philosophy of making this
Dealership the best place to work and do business in our community.
It is our belief that a well informed employee makes the best
employee. This handbook provides information concerning our
company policies and your benefits, and should be studied. Although this is not
primarily a book of rules, some are included. These rules are understandable and
are necessary. Proper conduct and consideration for your fellow employees will
help us to keep rules at a minimum.
All the rights, prerogatives and functions of management which are not expressly
restricted or modified by any provisions of these policies are reserved and
retained exclusively to the company.
The keynote to this organisation is teamwork and mutual respect, which will
serve our customer, company, and ourselves. We welcome you to the team and
hope that your stay with us will be a long, pleasurable and profitable one.
By accepting this position, you have accepted the responsibility of
conducting yourself in a manner exemplary of the product you
represent.

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PA RTS EXC E L L E N C E

Appendix B - Employee Handbook

PROBATION TRIAL PERIOD


During the first 90 days of employment, an employee is considered
probationary, and is subject to discipline and or discharge at any time during the
90 day period, and shall exercise no seniority.

ATTENDANCE
You are required to report to your job each working day except for illness or
special reasons. Since we are not a large company, you are very important to the
smooth operation of the Dealership. Absence creates burdens that are generally
difficult to deal with and results in dissatisfied customers. It is imperative that
you always call in if you will not be at work or if you will be late so other plans
can be made. Repeated, unexcused absence can affect advancements and
monetary increase as well as provide grounds for dismissal.

TARDINESS
Tardiness is an abbreviated form of absence which may, from time to time,
legitimately occur. However, chronic and habitual tardiness is not permissible
due to the unfair burden placed on the company, the customers, and your fellow
employees. Chronic tardiness is also grounds for dismissal.

CUSTOMER VEHICLES
In the event any employee damages a customers vehicle, company vehicle or
demonstrator, the employee is liable to pay the deductible portion of any
damages up to $250.00 per accident. All accidents must be reported to your
supervisor immediately.

SAFETY AND FIRE


All employees are required to maintain safe working conditions and eliminate
any or all potential fire hazards. The company is legally obligated to conform to
applicable regulations. Consult your supervisor for details.

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PERSONNEL DEV E LO P M E N T

Appendix B - Employee Handbook

WORKING HOURS
Sales Department

9.00am to 8.00pm Saturday thru Wednesday


9.00am to 5.00pm Thursday

Service Department

8.00am to 5.00pm Saturday thru Wednesday


No Thursdays

Parts Department

8.00am to 5.00pm Saturday thru Wednesday


No Thursdays

TIME RECORDS
If your particular job requires that you punch a clock, you will be given a time
card and told which clock to use. The clock must be punched in the morning
before you start to work, punched in and out for lunch and punched out at the
end of the work period. NO ONE SHOULD PUNCH TIME CARDS FOR
SOMEONE ELSE. If your particular job does not require you to punch a time
clock, it will be necessary for your supervisor to keep a record of your time
worked.
To assure that all operations are covered during the working day, please abide by
the lunch periods established by your supervisor.

AFTER HOURS
If a department head or employee wishes to use the premises after
normal working hours, he or she must obtain permission from the General
Office Manager or General Service Director.

ALCOHOL/DRUGS
No alcoholic beverages or drugs are allowed on company premises. No employee
will be permitted to work under the influence of alcohol or drugs. It affects safety
and public image. Any violation of above is grounds for dismissal.

THEFT
Grounds for immediate dismissal.

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Appendix B - Employee Handbook

FIGHTING
Grounds for immediate dismissal.

CHILDREN
Employees may not bring their children into the dealership during their working
hours. Children are easily injured and readily become a nuisance to other
employees, customers or property.

CONDUCT
No negative or obscene language will be used on company premises. Personnel
will conduct themselves in a courteous manner.

CASH ADVANCES
This Dealership is not set up to handle cash advances or loans to employees.

PRODUCTIVITY
We ask each employee to work with personal and corporate pride. We expect
each employee to put in a full days work so that maximum productivity is
achieved. Productivity means high quality work in sufficient quantities with a
minimum of errors and lost time. Productivity is directly related to profitability
and job security.

PARKING
Rear of lot for all employees.

YOUR SUPERVISOR
Your supervisor is your primary superior and is responsible for the performance
of the section in which you work. You are required to adhere to his/her directive.
In a situation where you and your supervisor disagree or need additional input,
the owners door is open to both of you by appointment. In an emergency you
may request immediate attention. In most cases a meeting can be set up within
24 hours.

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PERSONNEL DEV E LO P M E N T

Appendix B - Employee Handbook

WORK ON CARS
Any employee who deliberately performs substantial unauthorised work on a
vehicle; claims that work has been done or parts replaced when such is not the
case or performs any other act of fraud or deceit which can seriously jeopardise
the public or legal position of the company, may be discharged.

TELEPHONE CALLS
Employees are not encouraged to make or receive telephone calls during working
hours. However, family personal duties sometimes require such calls. Since there
are no pay telephones on the premises, employees may use company telephones
for short calls. Excessive incoming or outgoing calls are not permitted. The
company telephone will NOT be used for long distance calls without permission
from your department head. Should a customer wish to use the telephone, direct
the customer to the department head who will place the call for the customer.

PARTS TRUCK
Parts Truck is secured inside the building at night and on weekends. No smoking
while in the Parts Truck, customer cars, or, company cars and trucks. Parts
Trucks must be serviced and maintained (washed). Keys are to be returned to the
General Service Department when not in business use.

COMPANY PROPERTY
The primary purpose of all company property is to generate business for the
company and income for all employees. Therefore, it must not be neglected or
abused. Deliberate or negligent damage to company property is grounds for
disciplinary action and/or dismissal.

HOUSEKEEPING
Employees are required to maintain individual work areas in an uncluttered,
clean, neat and tidy condition in compliance with departmental housekeeping
policies and procedures.

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PA RTS EXC E L L E N C E

Appendix B - Employee Handbook

PROMOTING ADDITIONAL BUSINESS


If you submit the name of a prospective customer to the owner in writing, it will
be followed up by one of our sales personnel. Should the follow up result in a
sale, the company will pay you a bonus of $40.00 for each new or used car sold.

EDUCATION EXPENSES
The dealership is extremely interested in the education of each employee where
such education will serve to improve the quality of the employees job
performance. Consequently, the dealership will assist in tuition expense for
employees who successfully complete approved courses. Consult your supervisor
for details.
Sales and Mechanical courses are mandatory as seen fit by your supervisor.
Refusal to attend are grounds for dismissal.

SUGGESTIONS
Suggestions made by employees which management consider valuable to
productivity and profitability will be carefully considered.

PURCHASE OF CARS FROM THE


COMPANY
NEW CARS A price of $200.00 over cost will be extended to all employees on
purchases of new cars, including all optional equipment installed at the factory
(except in times of strike or short supply). When a used car trade-in is involved,
employees will have the option of disposing of it themselves or accepting our
appraised value at the time of purchase.
USED CARS Because of the difficulty in setting a formula, all used cars sales
to employees will be handled on an individual basis by the used car manager.

MOONLIGHTING
Mechanics may not perform work on automobiles they do not personally own
unless such work is done through the service desk at normal prices.

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PERSONNEL DEV E LO P M E N T

Appendix B - Employee Handbook

Employees may not engage in any commercial activities which are in direct
competition with this Dealership unless they first terminate their employment
with the Dealership.
Employees may not work for any company in direct competition with this
Dealership. No employee is permitted to sell automobiles in direct competition
with the Dealership. Nor may any employee solicit the sale of a potential tradein or inventory purchase for the purpose of either re-selling the car or
undermining the dealerships ability to buy the car at wholesale.
When an individual approaches an employee of the company for the purpose of
selling his or her vehicle, said individuals shall be directed to the owner.
Under no circumstances will an employee buy or attempt to buy such vehicle or
engage in discussions of value regarding vehicles.
Any of these activities are grounds for dismissal.

REPAIR WORK
A signature will be obtained on all Repair Orders prior to commencing work.
A telephone call confirmation is required when a signature is not available.

PARTS AND SERVICE DISCOUNTS AND


WORK PRIVILEGES
All employees are entitled to purchase those parts normally stocked and sold by
the following price formula: Cost plus 10%.
Mechanics may work on their own cars after regular business hours provided that
a manager is present and that such work will in no way hinder the normal shop
operation. Such work MUST be cleared by the shop supervisor. There is a 15%
labour discount for employees owning our franchise vehicles and who have them
serviced at the dealership.

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Appendix B - Employee Handbook

PARTS DEPARTMENT
The Parts Manager is solely responsible for the inventory.

ADVANCEMENT
The Dealership recognises the necessity of personal advancement within the
organisation as a strong indication of an employees value to the company. As
jobs become available, we try to promote from within whenever possible.

COMPANY AUTOMOBILES
Automobiles are provided to sales personnel for demonstration purposes and in
some cases to management personnel. These automobiles must be washed
regularly, kept clean inside and the gas tank kept at least half full. The car must
be properly maintained, serviced and cared for so as not to diminish its value.
No accessories will be added or alterations made without permission of the
owner.
The driver will be expected to pay fully the deductible portion of any damage
(up to a maximum of $250.00 per accident), and for all parking and traffic
violations, which must be reported to your supervisor immediately to assure
insurance coverage.
Said demonstrators are to be used only by personnel to whom they are issued and
are not to be driven or lent out to customers or members of an employees family.

RENTAL CARS
Rental cars issued to the service department are in use for three (3) very specific
reasons:
A. Provide a convenience for our customers.
B. To create additional income for the service department.
C. Generate additional business.

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PERSONNEL DEV E LO P M E N T

Appendix B - Employee Handbook

Our insurance covers these vehicles when driven by a customer whose car is in
our shop for service and/or repair only. The customer will sign a completed
rental agreement and be charged the minimum rental fee per day. These
automobiles will be used for no other purpose and they may be sold anytime by
the sales department.
A daily record will be kept by service management of the rental in our log book.

DEMONSTRATION DRIVES
Salespersons will accompany customers on a demonstration drive. UNDER NO
CIRCUMSTANCES will a customer be allowed to drive a new or used car
without being accompanied by a salesperson.

TERMINATION NOTICE
All employees who are resigning must give a minimum two (2) weeks notice
which may be waived at managements option. This helps us in finding a suitable
replacement for you and providing you with a good recommendation for future
employers.
Seniority will be broken and employment terminated for any one of the
following reasons:
A. Dismissal for just cause.
B. Resigning (quitting).
C. Absence from work for three consecutive days without reporting the reason
within 24 hours of first day of absence.
D. If an employee is laid off for a period of six months.
E. Violations of company policy or posted rules.

LUNCHTIME
Length and time of lunch period is one (1) hour.

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PA RTS EXC E L L E N C E

Appendix B - Employee Handbook

MILITARY DUTY
The company recognises the importance of the military service and,
consequently, observes the following policies:
1. You will be permitted military leave for your annual training exercises if you
provide a one month advance notice of the dates and location. Such notice
must come from your military unit.
2. Participation in weekend drills and annual training exercises will not affect
your regular time off for paid vacation.

LEAVES OF ABSENCE
Leaves of absence may be granted for compelling personal reasons. Consult your
supervisor if you are in need of such leave.

ADDRESSES
It shall be the employees responsibility to keep the company informed of their
current addresses and telephone numbers. The company shall rely on this
address for communications by mail.

SALARY AND WAGES


Your compensation is determined by your supervisor in conjunction with the
total management team. It is confidential and reflects the companys regard for
you as an essential member of the staff. Every effort is made to ensure that each
employee is paid fairly in relation to his or her productivity.

PAYDAY
Pay week runs Tuesday thru Monday. All employees are paid weekly, each
Wednesday, for work completed the previous week. Your cheque is normally
given to you on your payday before noon in your work area by either your
supervisor or another member of the management team.

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PERSONNEL DEV E LO P M E N T

Appendix B - Employee Handbook

ACCOUNTING ERRORS
Any discrepancies or questions about your pay should be raised immediately and
answered to your satisfaction on the day you are paid. The accounting staff
makes every effort to be accurate but mistakes can occur. Please bring any such
error to the immediate attention of your supervisor for correction.

MAJOR MEDICAL INSURANCE


After you have been with us for twelve (12) months of continuous service, you
are eligible to be covered by our group insurance plan. This plan is for the sole
benefit of you and your eligible dependants, including hospitalisation, surgical
plan, etc. The cost of this plan is shared by both you and your company on a
fifty-fifty basis of the cost of the coverage you select with your contribution
deducted from your cheque weekly. The cost is much lower than the same
protection would be if purchased individually. PLEASE REMEMBER, IF AT
ANY TIME YOUR DEPENDANTS CHANGE, YOU SHOULD NOTIFY
YOUR SUPERVISOR IMMEDIATELY TO KEEP YOUR POLICY
RECORDS CORRECT.

VACATIONS
Every employee is entitled to a paid vacation of one to three weeks. Vacations
may be taken at any time of the year but may not be carried over or credited from
one calendar year to the next. Choice of vacation dates must be cleared with the
department head who will approve dates. If a conflict exists, preference will be
given to seniority. The schedule to time earned is as follows:
1 WEEK

Upon completion of ONE YEAR of continuous employment.

2 WEEKS

Upon completion of TWO YEARS of continuous employment.

3 WEEKS

Upon completion of TEN YEARS of continuous employment


or more.

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Appendix B - Employee Handbook

HOLIDAYS
The following holidays are observed by this organisation for which you will be
paid;
NEW YEARS DAY
GOOD FRIDAY
CHRISTMAS DAY

SALES DELIVERIES
Salespersons will ensure that all new and used cars are checked out six (6) hours
prior to delivery, i.e. car runs properly, is washed, serviced, lights, wipers, etc. are
working. Car has jack, tools, spare wheel and tyre. Key number is put on jacket
and on service book. Have all papers prepared. Last minute checking of
deliveries will NOT be tolerated.
Explain car, service book and warranty to customer, and if there is a trade-in
involved, check out the trade before the customer leaves. Make sure the
equipment is intact, that is, has tools, jack and a spare and is in the same
condition as it was when appraised.

DEALER PLATES
Personnel who are issued dealer plates are solely responsible for them and will
comply as follows:
A. Sign for them annually.
B. Pay any parking tickets booked to their specific number.
C. In the event of loss, report time, date, plate number to General Manager and
police within twenty-four (24) hours.
D. Are responsible for cost of replacing lost dealer plates.
E. Will not lend dealer plates to anyone.
F. Will not use dealer plates for any reason other than company business.

MANAGERS MEETING
There is a managers meeting held in the owners office at 10.00am every
Wednesday. ALL managers will attend.
Any issues affecting employees resulting from a managers meeting will be posted
within forty-eight (48) hours.

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PERSONNEL DEV E LO P M E N T

Appendix B - Employee Handbook

PETTY CASH
Petty cash will only be used in an emergency. A petty cash slip will be signed by
recipient, approved and countersigned by management.

FIXED ASSETS
Department head must get approval from owner for any expenditures of more
than $50.00.

INJURIES
All accidents and/or injuries must be recorded by the department head and
brought to the attention of the owner immediately.

PERSONAL BELONGINGS
Personnel are requested not to leave any personal belongings on company
premises as our insurance policy does not cover same.

CAR KEYS
The following procedures must be adhered to: Once a car is in the showroom,
the keys will be removed and hung on keyboard. Conversely, cars left in the
service department will have the keys removed and returned to the service
dispatcher.

DETAILED CARS
Once a used car (or retired demonstrator) has been detailed (serviced,
reconditioned, waxed and polished) the detailed car is not to be driven other
than in the selling cycle. An employee failing to observe this policy will be
responsible for the cost of a re-detail.

USED CAR WARRANTY


Everything applicable to customer used car warranty will be brought to the
attention of the used car manager, who is solely responsible for determining if,
how, when and where such work (if any) should be done. No work will be paid
for by the dealership unless authorised by the used car manager who is
responsible for used car warranty interpretation.

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PA RTS EXC E L L E N C E

Appendix B - Employee Handbook

DEPOSITS AND PAYMENTS


All monies received from customers as deposits or payments will be handled by
the cashier and a company receipt signed and dated by the receiver will be given
to the customer. When giving a receipt for monies on an automobile, the receipt
number must be noted on the order form.

TELEPHONE PERSONALITY
Courtesy and efficiency on the telephone are of prime importance. Please answer
calls promptly. Be ready to talk as soon as you pick up the receiver.
Identify yourself and the Dealership. The conversation cannot begin until the
caller knows he has reached the right place.
Speak distinctly and directly into the receiver and always keep writing material
near the telephone.
In asking a caller to wait, politely explain the reason for the delay and lay the
receiver gently down.
When leaving the office, be sure to tell the designated person where you are
going and when you will return.
Even though a telephone call may interrupt an important conference or distract
you from concentration at the moment, always treat the call with utmost
courtesy.

DECORATIONS
Nothing will be hung on any walls without prior approval of the administrative
manager.

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PERSONNEL DEV E LO P M E N T

Appendix B - Employee Handbook

NEW CAR INVENTORY


No new car is to be driven from stock without first being placed in
demonstration service except during a sale and only during business hours.
Unauthorised use of a new car from stock is serious grounds for dismissal.

DISCRIMINATION
These company policies apply equally to all employees regardless of race, colour,
creed, national origin, age or sex.

RELATIONS WITH CUSTOMERS


We have a keen appreciation of our responsibility to our customers. The
company guarantees its work and of course, employees share this responsibility.
Show a real interest in the customer. The promptness with which
customers are waited upon, the courtesy displayed, the care and skill used in your
work, the promptness with which promises are kept and the neatness of yourself
and the premises, all influence the customer to come back.
Here are some tips to remember.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Greet customers promptly and courteously; do not keep customers waiting.


Smile.
Call customers by their name.
Be frank and honest.
Be friendly but not familiar.
Do not argue or lose your temper.
Keep promises.
Show your appreciation. Thank a person for their business.
Look the part of the professional person you are.
Be tactful.

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PA RTS EXC E L L E N C E

Appendix B - Employee Handbook

COMMUNITY RELATIONS
It is important that our company be known as a community-minded citizen.
Such a reputation can be earned only if every employee as well as the company,
accepts their full share of community responsibilities.

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