GM Personnel Development Parts

General Motors Dealer Development Systems

PARTS EXCELLENCE

PERSONNELDEVELOPMENT

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 tothe Service and Parts Excellence Standards Manual. Essentially this library is acollection of Dealership management and operating ideas gathered world-wide.

If, after reviewing a specific standard you have areas in your Dealershiporganisation that fall into the “needs improvement” category, then there will beideas in this library that may help you solve your problems.

While the reference libraries contain hundreds of good ideas, it should never beassumed that the ideas and examples presented are the only or desired means ofsolving your problem. You may have some better ideas to achieve a desiredoperating 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 theconditions 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

TITLE PAGEPreface i-iiTable of Contents iii-ivList of Documents v

CERTIFICATION• Dealer Certification Review - Module No.5 1-4

INTRODUCTION• System Overviews 5• Forms and Documents 8• Policies & Procedures Manual 9• Employee Handbook 15

JOB DESCRIPTION• Evaluators 19• Format 20• Support 27• Commitment to Process 29• Decision Grid 30

HIRING• Evaluators 31• Policies 32• Orientation 38• Administration 39• Decision Grid 40

PERFORMANCE EVALUATION• Evaluators 41• Review 42• Contents 44• Excellence Report 51• Personnel File 52

COMPENSATION PLAN• Evaluators 55• Plan 56• Administration 62• Decision Grid 68

COMMUNICATION• Evaluators 69• Introduction 70• Meetings 72• Financial Results 74• Departmental Objectives 75• Telephone 77

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Module Five - Table of Contents

PERSONNEL DEV E LO P M E N T

TITLE PAGE

TRAINING & DEVELOPMENT• Evaluators 79• Plan 80• Resources 83• Evaluation 86

TERMINATION• Evaluators 87

• Policy 88• Disciplinary 91• Leave of Absence 92

APPENDIX AParts DepartmentPersonnel Forms

APPENDIX BEmployee Handbook

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Module Five - Table of Contents


TITLE PAGE

System Overview 7Job Description 24Job Description – Review 26Job Description – Observation Form 28Hiring Process – Flow Chart 33Performance Evaluation – Observation Distortions to Guard Against 47Parts Department – Dealership’s Hub 71Training Materials – Catalogue Card 83

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Module Five - List of Documents


vi


THIS PAGE INTENTIONALLY LEFT BLANK

PURPOSEThe purpose of this Module is to establish:

• An understanding of the basic concepts pertaining to humanresource 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

employee’s activities and performance

REALISTIC BENEFITSProperly 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 VITALThe 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 yourpeople, they are not likely to return. And repeat business is what successfulDealerships are built upon.

Nearly every transaction in the Dealership is linked either directly or indirectlyto the Parts Department’s employees. The Sales Department relies upon goodservice being provided during the warranty period for repeat buyers. The ServiceDepartment in turn relies upon the Parts Department for the availability of partsto repair the vehicles. The Used Car Department also requires parts availabilityfor reconditioning. The Finance and Insurance Department sells “add-ons”requiring availability and service. The Body Shop needs sheet metal. Truly, theParts Department is the hub connecting the various spokes of the Dealership andthe employees are the bearings that make the wheel turn.

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Introduction - System Overview

INTRODUCTION TO PERSONNEL MANAGEMENT SYSTEMAn overview of the entire Personnel Management System is shown on the nextpage. In order to present a logical review of the materials, the system will bediscussed 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 appendicesinclude sample policies, documents and forms for your adaptation and use.

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Good management depends on accurate and sufficient information. The processfor accumulating and recording personnel related activities and performanceresults begins with proper documentation. The Parts Manager should determinewhich activities and results need to be recorded. While the types of forms mayvary among Dealerships, the basic requirements of the forms and documents arethe same from Dealership to Dealership.

Forms and documents should :

• Provide the Parts Manager with a complete history including theperformance 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


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

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Introduction - Forms and Documents

MANUALA Dealership should maintain a Policies and Procedures Manual. The primaryreason is that employees are more productive when treated fairly andconsistently. Fair and consistent treatment is more readily achievable whenpolicies are written… there is less chance of misinterpretation ormisunderstanding.

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 Policiesand Procedures Manual when verbage is included which specifies usage andpolicy. The following discussion centres on the background for Policies andProcedures.

RECRUITINGGuidelines for management to follow concerning recruitment procedures needto be outlined. This will ensure consistency between departments and reducechances of discrimination. The purpose of recruitment is to hire the mostqualified candidate. Only qualifications related to job performance should beused 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 willensure comprehensive gathering of data and provide points of discussion for theinterview.

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Introduction - Policies and Procedures Manual

PERFORMANCE EVALUATIONEvery employee has three basic questions that they want and need answered tomaintain motivation. They are: what is expected, how much and by when, andhow am I doing? The purpose of any performance evaluation is to provide theanswers to these questions. Performance evaluations are not intended as asubstitution of immediate feedback, but are rather a forum where the employeeand supervisor can jointly devise a plan for improvement Performance evaluationresults should not come as a surprise to the employee.

The Dealership’s Policies and Procedures Manual may include specific policiesrelated to the content and methodology of how performance evaluations shouldbe 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 employee’s 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

• Management’s support activities

• Employee’s commitment to participation

• Establishment of target dates

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CONDITIONS OF TERMINATIONMost experts in the field of human resources agree that there should be only tworeasons for termination of employment. The two reasons are violation ofcompany policies and procedures and job performance below standard.Standards of job performance will be discussed later. Specific rules must beestablished concerning the employee’s behaviour and included in the Policies andProcedures Manual of the Dealership. These rules should also include theconsequences for their violation. Consequences should vary dependent upon thedegree 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 andconsistent manner. Remember, termination can occur for reasons other thanviolation of company policies or procedures, or below job performancestandards, such as:

• Layoff

• Medical disability

• Retirement

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For these reasons, take into consideration the economic factors and proceduralsteps 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 mainobjective is to finalise the paperwork and escort the employee off the premiseswithout requiring a secondary visitation to the Dealership. The steps to befollowed 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 conflictsand job interferences can be uncovered. It is also an excellent opportunity toexplain benefits and entitlements to the terminated employee, and to review thecircumstances that led to ultimate termination, allowing management to addressthis situation if necessary.

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ADVANCEMENT AND PROMOTIONThe Dealership’s policy on advancement and promotion is intended to not onlyclarify the conditions for which either can be achieved, but as employeemotivation. Once the mystery is removed, employees will strive for advancementto the next level of pay or promotion to a higher level of responsibility.

The policy should include management’s commitment to promotion fromwithin and commitment to pay for performance. Better candidates are alsoattracted by continuous training programmes conducted both in-house and/orthrough external programmes.

All advancement and promotion should be tied to the Dealership’s performanceevaluation system. This promotes fairness, consistency, and objectivity. Threefactors that advancement and promotion should be based upon are: evaluationrating, eligibility, and time/grade. Once a determination has been made by theimmediate supervisor to advance or promote an employee, the next level ofmanagement should review and approve the decision.

COMPENSATIONTwo basic precepts should be followed to generate the maximum return. Preceptone is to pay for performance. Precept two is that compensation should be tiedto the overall objectives of the business.

Pay for performance can be achieved by tying merit increases to an employee’sperformance evaluation. If the performance evaluation indicates above standardperformance, then a merit increase is warranted. The size of the merit increaseshould be in direct proportion to the degree that performance is above thestandard.

Tying compensation to the overall objectives of the Dealership can beaccomplished through a commission structure. The process starts by firstdetermining the amount of pay a specific job classification, at a standard level ofperformance, should be compensated, taking into account the following factors:

• Going rate

• Job to be done

• People availability

• Working conditions

• Employee’s values

• Affordability

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COMPENSATION AND BENEFITSAs with all employee records, compensation records should be maintainedconscientiously. This includes records documenting commissions paid and timeclock 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 andadministration of benefits should be the economic value and a statement that itis 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 concerningeligibility, extent of coverages, and employee contributions (if any). Otherbenefits might include profit sharing, and service awards.

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The Employee Handbook is intended to be a condensed version of the Policiesand Procedures Manual. In the Handbook, management can outline both theemployee’s privileges and responsibilities. The Handbook is an integral part ofthe orientation process. It provides a syllabus for the immediate supervisorduring orientation, and becomes a reference document for the employee onceactively employed.

Appendix B provides an example of an Employee Handbook. It is a sample of anEmployee Handbook from an actual Dealership. The text is this Module goesinto more detail than the example provides.

COMPENSATION AND MERIT INCREASESReferences 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 ELIGIBILITYReferences to benefits availability and eligibility should outline the followingsubjects 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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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 RULESShop rules should be included as part of an employee’s job responsibilities. Theyare intended not to be a restriction as much as “the Golden Rule”. In otherwords, this is what any employee would expect of his peers, which enhances theworking 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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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, theconsequences should be clearly stated. The consequences may vary dependingupon the degree of seriousness. They might include:

• Verbal reprimand

• Written reprimand


• Specific probationary period, second offence within this period results intermination


APPEARANCE AND UNIFORM CODEThe dress and appearance should relate to the job being done, and whether ornot the employee comes into contact with the customer. Many Dealerships findit beneficial to provide uniforms to the workforce. This gives the staff aprofessional image and eliminates inconsistency or ambiguity concerningappropriate attire.

CUSTOMER RELATIONSCustomer Relations is intended to emphasise the importance of the customer tothe survival of the Dealership. And, without repeat customers, the Dealershipwill not grow and prosper. Customer satisfaction is the responsibility of allemployees, whether or not they come into direct contact with the customer. Thesupport personnel have just as much impact as the salesperson or technician. Thefollowing points should be addressed:

• Individual contributions comprise the customer’s total dealershipexperience

• Customer complaint procedure

• Recheck and verify data when in doubt

• Accuracy generates satisfaction and efficiency

• Treat customers courteously

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• 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 HANDBOOKThe preceding explanation has outlined the specific information that should beincluded in an Employee Handbook. In regard to its composition, it is furtherrecommended 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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QUALIFIER DEALER ACTION VALUE

FORMAT • There is a written Job Description for each job classification within the PartsDepartment 15

• Each Job Description contains job responsibilities, standards of performance, and reporting relationships 15

• Every employee receives a copy of theirJob Description 15

• Job Descriptions are reviewed annually with each employee and updated as necessary 15

SUPPORT • Job Observation forms are used to develop and update Job Descriptions as needed 15

COMMITMENT • Job Descriptions are used in theTO PROCESS recruiting, selection, and hiring process 15

• Job Descriptions are used to identifyjob advancement opportunities 10

Assessment Score (100 points possible)Certification requires a score of 80 or above

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Job Description - Evaluators

PURPOSEThe Parts Manager should establish the employee’s duties and use formal,written methods to evaluate their performance. The Parts Departmentemployee’s Job Description should clearly define their duties, the expectationsfor 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 oftheir work should be, and how supervisory personnel will review those results.

The Job Description is a complete, realistic statement of an employee’sresponsibilities. The Description must be clearly written so that the meaning isthe 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 includesthe title and level of the job. The level ranks a job relative to other jobs. The JobDescription explains the responsibilities.

When the Job Descriptions are prepared, their content and intent should bediscussed with the employees for their input and consensus. New employeesshould have Job Descriptions explained to them during orientation. Allemployees should know what their Job Descriptions require of them. Supervisorsshould assure that this is so by discussing and clarifying each employee’s JobDescription with them.

PREPARING A JOB DESCRIPTIONJob Descriptions are important to a smoothly operating Parts Department.Clearly written, accurate, realistic and complete Job Descriptions provide aworking basis for both employee and supervisor, create confidence and fairnessbetween them, and organise the Department’s work. Suggestions for preparingJob Descriptions are as follows:

• Step 1List all the job tasks to be performed for each position. If no formalised taskform is acceptable, prepare a list of tasks by tracking everything done for amonth. Each employee may be asked to list their job tasks. Be sure toinclude occasional jobs (such as annual inventory, ordering supplies,running errands, etc.) so that nothing is forgotten

• Step 2Review the lists for completeness. Add, delete, or alter as necessary. Haveothers look at the changing lists. It is likely that each reviewer will think ofanother task which was overlooked

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Job Description - Format

• Step 3Review any proposed changes with the employee involved. Make sure thenew Job Description fits the employee’s working habits and responsibilitiesor, if a change in routine is required, that the employee is clearly aware ofthe new expectations

• Step 4Consider 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, orproficiencies

– Organising the jobs in the Department… assures that every necessaryduty is assigned but not duplicated, and that all Department duties arelogically accomplished

– Helping employees understand their positions in the Department…clarifies reporting relationships so that both those supervising and thosesupervised are fully aware of requirements

– Evaluating performance… is simplified when Job Descriptionsthoroughly describe expectations in a measurable way. Employee reviewscan then become a discussion of outcomes, not an argument aboutprocesses. Both supervisor and employee are working together forconsistent improvement in task performance

– Orienting new employees… is aided because the Job Descriptionprovides 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 theDealer assess how well employees are performing and how adequately thisimportant work of the Department is being accomplished

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• Step 5A 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 andsupervisory roles are made

– Minimum qualifications or prerequisites for the particular job areoutlined as capabilities. In many cases the differences in thesequalifications justify differences in compensation, particularly when jobtitles are the same, but task capabilities may be far more sophisticated forone Job Description than for another

– Tasks are described briefly as duties and responsibilities. These should bedetermined from the lists prepared in Steps 1 and 2

– A final section should describe the limits of an employee’s actions as wellas provide the authority for the person to act within the limits prescribed.Combined with this should be precise, measurable methods forevaluating results. Wherever possible, these results should be prepared interms of agreed upon outcomes, approved plans, programmes or budgetsthat apply to the job. These accountability factors form the basis uponwhich the immediate supervisor evaluates performance

• Step 6

After the preliminary Job Description has been prepared, discuss it with theemployee for which it was written. Confirm the expectations with both theemployee and the supervisor. Clarify contents; reach agreement. Alter theJob Description as necessary to assure the Parts Department and theDealership, as well as the employee, are receiving fair, reasonable andequitable treatment

• Step 7

As tasks in the Parts Department change, or new titles are developed, theJob Description should reflect what the employee actually does. Properlywritten, a Job Description gives the employee a sense of belonging, control,and purpose and a feeling that supervision is equitable

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JOB DESCRIPTION CONTENTSEach Job Description should contain job responsibilities, standards ofperformance, and reporting relationships. These requirements are minimal.Additional contents, as stated in Step 5 of “Preparing a Job Description”, mightinclude:

• 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 COPYEach employee should be provided a copy of their individual Job Description.This is important since a Job Description will answer three key questions that allemployees have:

• What is expected?

• How much and when?

• How am I doing?

The Job Description document alone will answer the first two questions, thethird question is answered at the time of the employee’s performance review. Atthat time the actual results are compared to the established standards ofperformance contained in the Job Description.

Prior to the employee’s annual performance review, or any time in between, theemployee 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 increaseDepartmental efficiencies.

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JOB DESCRIPTION (TITLE)

PREPARED BY DEPARTMENT DATE

Functions/Purpose Responsibilities and Authority (Cont’d)

Responsibilities and Authority Relationships

Standards of Performance

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JOB DESCRIPTION EMPLOYEE REVIEWThe Job Description should be reviewed annually with every employee andupdated as necessary. As stated earlier, this allows employees direct feedback tomanagement concerning any changes in their jobs. This feedback will helpmanagement eliminate any overlapping or gaps of job tasks, plus improve theperformance evaluation process. Discussions can be focused on performanceversus standards instead of disagreements regarding assigned tasks.

The process of review can be accomplished in one of three ways. First, when ajob change has occurred. Second, during a specific time period whichmanagement has assigned. This possibly is done simultaneously for all jobclassifications during a slow period. Third, just prior to the employee’s annualperformance 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 onthe following page is a sample Job Description Review Form.

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JOB DESCRIPTION – REVIEW (TITLE)

REVIEWED BY DEPARTMENT DATE

Responsibilities Added Responsibilities Deleted

Authority Added Authority Deleted

Standards Increased Standards Decreased

Job Interferences ExperiencedTraining Needed

Special Accomplishments

JOB DESCRIPTION OBSERVATIONFORMSThe responsibility for developing and updating of Job Descriptions lies withmanagement. While the employee can make significant contributions to theupdating process, the final completed document must be determined bymanagement. The most difficult task is the origination of the initial JobDescription document. While samples can be found in the appendices, eachDealership will probably find it necessary to customise their own JobDescriptions.

If there is a current Job Description, it will provide a good working basis fromwhich to begin, even though it may be out-of-date or not the format you areintending to use. Once you have an existing copy, or at least an outline of areasto be observed, you can begin gathering data by observing the job while it isbeing done.

The advantages of direct observation include: first hand information concerningworking conditions, sequences, equipment used, and working relationships.

It is recommended that the observation process be used in the development ofJob Descriptions and every other year thereafter for updating. Located on thefollowing page is a sample Job Description Observation Form.

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Job Description - Support

JOB DESCRIPTION – OBSERVATION FORM (TITLE)

OBSERVED BY DEPARTMENT DATE

TASK

What does the employee do? Who or what else is involved?

What equipment/document is used? Describe sequences followed

Standards Increased

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Job Description - Support

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

JOB DESCRIPTION USESJob Descriptions should be used as a guide in the following processes:

• Recruiting

Before an advertisement is placed, examine the Job Description for theposition to be filled. The Job Description contains a listing ofresponsibilities and activities that must be performed. This information willhelp determine the necessary qualifications and experience that is desired.Using this information to prepare advertisements or job postings willpermit an accurate and precise description of the qualifications you seek.

• Selection

As candidates present their credentials for the job, their individualqualifications should be measured against what is outlined in the JobDescription.

• Hiring

During the initial contact, most job applicants will want to knowsomething about the job. Effective interviews rely on the Job Descriptionas the basis for this explanation. Many skilled interviewers review a copy ofthe Job Description with the applicants.

Job Descriptions should be used to identify job advancement opportunities. Agood way to develop loyal dedicated employees is to provide opportunities forthem to develop skills and to grow while on the job. Management can use theJob Description to identify and provide advancement opportunities.

Assessing potential candidates for a promotion should begin with a JobDescription. Comparison of the responsibilities and standards of the present jobclassification to those of the next level will indicate qualifications, as well as needfor further training and/or experience.

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Job Description - Commitment to Process

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Job Description - Decision Grid

RESPONSIBILITIES

EXPECTATION (Who) RESPONSE (What)

GENERAL • Review and approve all completed Job MANAGER Descriptions

• Complete a Job Description for the Parts Manager position

• Decide on basis for Standards of Performance

PARTS • Complete a Job Description for all Parts MANAGER 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

EMPLOYEES • Give open input as to completed Job Description

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Hiring - Evaluators


POLICIES • Written policies relating to hiring practicesincluding:• Recruitment 8• Qualifications 8• Interview Process 8• Assessment 8• Selection Process 8

• Hiring decisions are accomplished inaccordance with written policies 10

ORIENTATION • New employees attend an orientation which includes:• Job Description 10• Explanation of Dealership’s policies 10• Employee Handbook 10

ADMINISTRATION • Persons responsible for hiring process should be qualified, and authorised to administer Dealership’s policies 10

EMPLOYMENT FILES • All job applications and interviewreports are kept on file for a minimumof one year 10


NEED OF HIRING POLICIESPeople are a critical factor to the success of any business. People are the key toimproving profitability and customer satisfaction. For these reasons it isabsolutely necessary to the Dealership’s success to ensure that the best possiblecandidates are recruited and hired.

To accomplish this, the Dealership must have written policies that cover hiringnew employees. The goal of these policies is the selection of the candidate thatis best qualified for the job. Selection of a new employee must be based onmatching a job candidate’s experience, education, and job skills to thequalifications necessary for a specific job.

The hiring process includes several steps. Shown on the adjacent page is a flowchart outlining these steps.

RECRUITMENTRecruitment is the process by which job candidates are sought and encouragedto apply for the vacant position. The Dealership has available the followingsources:

• 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 orcommunity colleges, senior colleges, and high schools

• Recommendations/referrals from employees, personal contacts, businessassociates, wholesale contacts

• Employees of independent garages or other Dealerships

• Government aided programmes

The policy regarding recruitment should emphatically state that in-housepromotions or transfers, when feasible, are the preferred method of recruitment.This should be accomplished by first comparing the job qualifications of avacant position with the employees’ performance evaluations. Those employeeswho have shown excellent performance ratings and have the necessaryqualifications should be given first consideration. If review of employees’performance evaluations do not indicate employees possessing the necessaryqualifications, the job should be posted.

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Hiring - Policies

HIRING PROCESS – Flow Chart

Opening Hiring Decision RecruitmentOccurs is made

In-House Outside

Review Of Posting One or MorePerformance of Seven SourcesEvaluators

Preliminary Screening of Applications and Self-Nominees

Initial Interview

SelectionProcess

Verification of Data Notification of Decline

Second Interview

Assessment Notification of Decline

Orientation Notification of DeclineProcess

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Hiring - Policies

The posting of a job opening will allow the employees to self-nominate. This iscritical for two reasons:

• It is possible that a specific qualification has been overlooked, or acquired since the employee’s last performance review

• Employees who think they are qualified and are not will be informed of thisfact

Accompanying the job positing should be the method and the contact’s name,address, and telephone number to initiate the process.

Beyond establishing in-house promotion and transfer as the number one sourceof recruitment, the remaining sources should be prioritised by management.

QUALIFICATIONSThe qualifications for an open job position should be referred to in the specificjob description. These qualifications are first used in both the posting andadvertisement of the position to be filled. This will discourage unqualifiedcandidates from applying for the job, making the screening process formanagement much simpler.

Secondly, the job qualifications enumerated in the job description will providean effective screening device when reviewing job applications. The jobapplication 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 checkedand verified, as well as elaborated upon during the interview process.

NOTE: Positions advertised should not have a qualification that containsdiscriminatory bias.

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Hiring - Policies

INTERVIEW PROCESSAfter recruitment has begun and both self-nominations and job applications arereceived, the next step is the interview process. The interview process occurstwice 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 theself-nomination or job application. This data relates to general background,foreign language capabilities, employment experience, special skills andqualifications, and education and training. In the case of self-nominees, previousevaluations should also be a topic of discussion.

After the initial interview, the interviewer must make a determination that thecandidate possesses all the necessary qualifications. If not, the candidate shouldbe notified in writing that he/she is no longer under consideration and why.

If the candidate possesses the necessary qualifications, their job application, orperformance evaluations in the case of self-nominees, should be checked andverified for completeness and accuracy.

If the candidate is from outside the Dealership there should be a thoroughinvestigation. Included in Appendix A is a sample telephone reference check.Not all previous employers will be willing to discuss present or previousemployees. However, these questions must be asked. At a minimum, two keyquestions will provide a clue as to the candidate’s 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 providegood reference just to unload an employee from their rolls. Other times, apersonality conflict will jade the previous employer’s response.

Once the job application data has been verified, the candidate should becontacted for the second interview. The second interview should include theimmediate supervisor, either in a team interview or series of one-on-ones.During the second interview, feedback from reference checks should be discussedand elaborated upon. Also, the job description and company policies areexcellent topics for review. The candidate should be provided a clear picture ofthe responsibilities and organisation so that they can make an enlighteneddecision concerning their career.

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Hiring - Policies

A Job Interview Report is located in Appendix A. This form will help theinterviewer with their assessment of the candidate.

At the conclusion of the second interview, the management team should makethe decision as to tendering the candidate an offer of employment. Ifmanagement tenders an offer of employment, it should be conditional on thebasis of the candidate’s ability to pass an assessment.

ASSESSMENTThe assessment process encompasses any testing that the Dealership deemsnecessary. Assessment or testing is applicable in three general areas:

• Skill

• Knowledge

• Aptitude

Skills assessment is usually a measurement of one’s ability to apply knowledge oruse 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 one’s knowledge related tothe 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 one’s general suitability toperform within the job situation such as:

• Mechanical

• Interpersonal relations

• Math and number recall

• Instruction oriented or self-reliant

• Team player or individually motivated

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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 provento be an accurate predictor of the candidate’s success on the job. If the assessmentis copyrighted, the author should be prepared to substantiate its validation. If theassessment is internal, management should consult legal counsel before its use.

Whether or not your Dealership uses assessments is a decision that yourmanagement team will have to make. Remember that the intention of anyassessment is to measure a candidate’s skill, knowledge, or aptitude. Thisfeedback is then intended to be an indicator of the candidate’s likelihood ofsuccess.

SELECTION PROCESSThe selection process is not an exact science. However, if the previous stepsoutlined are followed, the best decision of who to select for the job will be greatlyenhanced.

Combining all these factors and inputs, the Dealership management teamshould be capable of making an enlightened decision.

The written policy related to the selection process should state either the jobtitles or individuals responsible for the final decision and the criteria/process tobe used.

In addition to the written policies outlined, specific managers should be assignedthe responsibility of implementation. A singular manager should be appointedby the Human Resource Manager to oversee the entire process.

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Hiring - Policies


PROCESSIt is suggested the orientation process include the following:

• Information about the Dealership – history, ownership and organisation

• Statement of company policy related to customer satisfaction, qualitycontrol and safety regulations

• Information about the Dealership’s 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 supervisorduring the orientation process, the following three items are mandatory: JobDescription, explanation of Dealership’s policies and procedures and EmployeeHandbook.

JOB DESCRIPTION REVIEWThe Job Description has already been covered at great length. It must beremembered that its value has several implications.

Sample Job Descriptions are located in Appendix A. Whether you use the JobDescriptions provided, or develop your own, each major category should becovered in depth.

DEALER POLICIES EXPLANATIONExplanation of the Dealership’s policies and procedures at the time of orientationis 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 PROCESSIt is imperative that persons administering the hiring process be qualified. It isrecommended that one manager be assigned as the Human Resource Manager(HRM). His responsibilities would include overseeing all matters concerningemployee relations plus training and coaching other managers administering the

38


Hiring - Orientation

Dealership’s policies and procedures. Each new manager should undergo a brieftraining session related to employee relations Content of such training shouldinclude:

• Recruitment

• Hiring

• Interview Process

• Orientation


• Promotion/Transfers

• Termination Process

Each of the subject areas should be reviewed in detail including the appropriateforms and the Dealership’s philosophy. When the Human Resource Manager isconfident of a manager’s ability, the manager would conduct his initial employeeproceedings with HRM observing.

Proper training and orientation of managers plus one key manager assigned asco-ordinator is the only method available to assure fairness and consistency ofemployee relations.

EMPLOYMENT FILESRecords are important because they provide information on which to basedecisions in the future. In the hiring process, records also supply a basis forexplaining or justifying changes that were made.This can be especially important if candidates who were not selected bring legalaction against the Dealership for violation of rights guaranteed them under thelaw.

All records involved in the selection process need to be retained. This shouldinclude:

• 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 employee’spersonnel file.

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Hiring - Administration

40


Hiring - Decision Grid

HIRING


SOURCES • Jobbers, mass merchandisers, automotiveFOR NEW departments and motorcycle shopsEMPLOYEES • Automotive warehouses and outlets

• Trade/vocational schools• Manpower development programmes• High school co-operative programmes• Friends of current employees• Employees in other departments

MINIMUM JOB • In order to avoid an over abundance of QUALIFICATION inquiries and as a preliminary screening

process, minimum job qualifications relatedto the actual job description should be established


REVIEW • A written Performance Evaluation is provided to each employee at least annually 10

CONTENTS • The written Performance Evaluation addresses the following areas:– Responsibilities/Authority 4– Performance Summary 4– Performance Rating (per item) 4– Performance Rating (overall) 4– Employee Comments 4– Employee Commitment 4– Management Comments 4– Management Commitment 4

EXCELLENCE • A written Excellence Report is providedREPORT for documentation of employee’s excellence 6

PERSONNEL • An employee Personnel File is maintained FILE for each employee 10

• The employee Personnel File contains the following records:– Application for Employment 3– Job Interview Reports 3– Reference Checks 3– Employment Notice 3– Orientation Checklist 3– Performance Evaluations 3– Excellence Reports 3– Payroll Change Notice 3– Attendance Records 3– Leave of Absence Requests 3– Accident Reports 3– Employee Reprimand 3– Termination Notice 3– Exit Interview 3


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Performance Evaluation - Evaluators

APPRAISAL PROCESSBefore any action can take place to improve or reward performance, you musthave a base or starting point. That involves observation and keeping records onactual performance.

Not everything can be recorded. Below are various indicators of performancethat may be applied.

• Productivity

• Efficiency

• Quality of Work

• Customer Handling

• Sales

• Attendance

• Work Habits

The process of evaluating performance is simple if performance standards havebeen established. These standards are most frequently found in the employee’sJob Description. Performance standards can be found in the sample JobDescriptions located in Appendix A.

Actual performance is measure and compared to standards.

If this comparison reveals that performance is below standard, there can be onlytwo causes:

• Knowing Deficiency

• Doing Deficiency

A “knowing deficiency” infers that the employee does not know what to do orhow to perform the job. A “doing deficiency” infers that the employee knowswhat and how to perform the job, but does not. Corrective action for each isdifferent.

The remedy for a “knowing deficiency” may include training, drill, practice, ora checklist. The remedy for a “doing deficiency” may include direct feedback,appropriate rewards and punishment, or removal of job interferences.

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Performance Evaluation - Review

If performance is above standard the employee should be rewarded. Rewardsmay 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 orderto motivate the recipient. Good performance, unrewarded, will have a negativeeffect, causing low morale and declining productivity.

Review and discussion of employees’ performance should occur a minimum ofonce a year. Most Dealerships use the employee’s anniversary date as the time toconduct their Performance Evaluation. This distributes the reviews throughoutthe year, making it less burdensome on the supervisor.

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Performance Evaluation - Review

IMPORTANCEThe Performance Evaluation is the method by which feedback is provided to theemployee. This feedback should inform the employee as to the quantity andquality of their work. In the absence of feedback, employees are likely tocontinue to perform as they have in the past. Since most employees want to doa good job, providing feedback will assist both management and the employee toachieve favourable performance. To provide feedback that is specific, achievableand 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/AUTHORITYPerformance Appraisal forms should outline a job’s major responsibilities andauthority. These responsibilities and authority describe the primary duties andother major functions of a position in which an employee is expected to achieveresults. Along with the major responsibilities, the corresponding authority toaccomplish these tasks should be defined.

In order to be effective, these responsibilities and authority should be expressedobjectively, clearly, and concisely; be job centred and output oriented.

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Performance Evaluation - Contents

PERFORMANCE SUMMARYThe Performance Summary is where management recapitulates the employee’sperformance to date. Specific examples drawn from the employee’s Personnel Fileshould be cited. Such examples will assure consistency and fairness, as well asjustify the performance rating assigned by the supervisor for specificresponsibility.

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 ITEMThe Performance Rating is the grade or relative value assigned to theresponsibility for results achieved. The Performance Rating categories shown inthe 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 accurateand fair. Also the Performance Evaluation should be based on observations of anemployee’s performance over the entire period under consideration

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PERFORMNCE RATING OVERALLThe overall Performance Rating is the grade or relative value assigned to the totalresults achieved. The Performance Rating categories are the same for both (peritem) and (overall). The distinction is that the overall Performance Rating musttake 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 guidefor merit increases. Fairness, consistency and objectivity must be maintained atall times to maintain its motivational effectiveness.

In rating performance, distortions must be guarded against. These distortions areshown on the facing page.

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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 thiserror, evaluate each employee against the performance standards for each majorresponsibility. Ask for others’ opinions about the employee’s 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 bean inappropriate generalisation about total performance based on one majorresponsibility. To avoid the halo effect, evaluate each major responsibility separatelyand formulate independent judgements about employees in addition to receivingcounsel from others.

• CONTRAST EFFECT

A tendency to evaluate an employee by comparing or contrasting the employee withanother individual. To avoid the contrast effect, evaluate people according to theirmajor responsibilities and job performance standards. Compare people after, ratherthan before, their evaluations.

• FIRST IMPRESSION/LAST IMPRESSION EFFECT

A tendency to make an initial favourable or unfavourable judgement about anemployee and then ignore or distort subsequent information so as to support theinitial impression; or a tendency to base an entire evaluation on performance duringthe last portion of the evaluation period or on only those major responsibilities withwhich the employee is having difficulty. Minimise this effect by keeping accuraterecords 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 orcontrast with others or with predetermined beliefs and values about generalemployee capabilities. Avoid leniency effects by evaluating employees against allmajor responsibilities and job performance standards.

• CENTRAL TENDENCY EFFECT

A tendency to rate all employees close to the midpoint of the scale so as to avoiderring with a too high or too low rating. To avoid central tendency, evaluate eachmajor responsibility and job performance standard separately, using the entire ratingscale.

• CONVENIENCE EFFECT

A tendency to rate only those major responsibilities easiest to assess, such as writtendocuments or interdepartmental relationships. Avoid the convenience effect byconsidering all major responsibilities.

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EMPLOYEE COMMENTSThe Employee Comment section of a Performance Evaluation is the methodallowing input from the employee. Nobody knows, or understands, the jobbetter than the employee who is performing it! Oftentimes, the employee caninform management of specific achievements or difficulties encountered on thejob. Remembering that the Performance Evaluation is a two-waycommunication process can substantially increase productivity and morale.

Employees should be encouraged to comment and made to feel a part of theoverall 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 management’s comments should be utilisedto formalise action plans for improvement or corrective measures.

EMPLOYEE COMMITMENTThe Employee Commitment section of a Performance Evaluation is a methodallowing obligation to action plans on the part of the employee. These actionplans are specific steps to be taken to improve performance and increaseeffectiveness. 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 orresponsibility

• 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 toaccomplish.

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MANAGEMENT COMMENTSThe Management Comment section of a Performance Evaluation allows theevaluator to summarise his overall appraisal of the employee. Comments canrange from highlights to lowlights of performance dependent upon the overtoneof the review. Additionally, work habits and work ethics which are usually notlisted as major responsibilities can be evaluated. These ancillary subjects mightinclude:

• 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 COMMITMENTThe Management Commitment section of a Performance Evaluation is amethod allowing management to outline specific action plans to improve anemployee’s performance and effectiveness. These action plans typically include:

• Training– Formal– On-the-job

• Education– Academic– Technical

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• Changes in Responsibilities or Authority

• Elimination of Job Interference’s– 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 identifiedand addressed. The action plan should specify the how, when, and what eachparty is committed to accomplish.

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USAGETo ensure a balance of employee feedback, it is recommended that an ExcellenceReport be utilised. The report is intended to recognise exemplary actions andresults achieved by employees. Once completed by a member of management, itshould be kept in the employee’s personnel file for future reference andconsideration at the annual evaluation.

CONTENTSThe information recorded on the document should include necessary data suchas name, position, department and date. The pertinent facts concerning theaction or results being recognised should be elaborated upon. Lastly, the actiontaken 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

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Performance Evaluation - Excellence Report

USAGEThe Personnel File is the keystone to effective personnel development andmanagement. No singular document form, or report can emody all theindividual pieces that, when combined, complete the puzzle. The permanentPersonnel File is used as a reference to determine the following:

• Evaluations

• Promotions/Transfers

• Merit Increases

• Eligibility of Benefits

• Training

• Reprimands

• Terminations

ORGANISATIONThe Personnel File need be nothing more than a folder containing theDealership’s records relating to an individual employee. Within the folder, theinformation should be organised based on the frequency with which the materialis 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, salaryand 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.

CONTENTSBoth the usage and organisation have been discussed in the previous evaluator.As stated, the Personnel File is an accumulation of all the documents and datarelated to an individual’s employment. A brief outline and explanation ofmaterial to be retained is shown below. Samples are included in Appendix A.

APPLICATION FOR EMPLOYMENTAn Application for Employment will provide general background information,language skills, education and employment experience that can be helpful incareer planning.

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Performance Evaluation - Personnel File

INTERVIEW REPORTSThe Interview Report will provide observations of the employee’s personalcharacteristics such as appearance, bearing, expressions, job knowledge,motivation, and personality. This information can be helpful to determinechanges in character and deportment.

REFERENCE CHECKSThe Reference Checks will provide observations of the employee’s previous workhistory. Information related to the type of work, quantity or output, quality ofwork and work habits can be helpful in career planning.

EMPLOYMENT NOTICEThe Employment Notice will provide employment anniversary date, startingsalary, orientation supervisor, and starting position. This information can behelpful determining benefits eligibility, merit increases, and seniority privileges.

ORIENTATION CHECKLISTWhile not mandatory, an Orientation Checklist can be used to ensure theDealership’s policies and procedures have been communicated to the employee.Refer to Appendix B.

PERFORMANCE EVALUATIONThe Performance Evaluation will provide major responsibilities, performancesummary, performance ratings, employee comments and commitments, andmanagement comments and commitments. This information can be helpful indetermining career goals, promotions/transfers, merit increases, probation, ortermination.

EXCELLENCE REPORTSThe Excellence Report will provide documentation of an employee’s exemplaryactions or achieved results. This information can be helpful in determiningevaluations, merit increases, merit awards, promotions and transfers.

PAYROLL CHANGE NOTICEThe Payroll Change Notice will provide changes related to department, jobclassification, shift or rate. In addition, it will provide the reason for thechange(s). This information can be helpful in determining merit increaseincrement and timing, eligibility of benefits, and seniority privileges.

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Performance Evaluation - Personnel File

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

LEAVE OF ABSENCE REQUESTThe Leave of Absence Request will provide nature of request, duration of leave,management’s response, and the date the employee is to return. This informationcan be helpful in determining benefit eligibility and manpower requirements,and lessen the chances of misunderstanding or legal action on the part of theemployee.

ACCIDENT REPORTThe Accident Report will provide the date, time and location of the accident.Additionally, the report will describe the accident, injuries incurred, cause andrecommended prevention measures. This information can be helpful indetermining entitlement to health and accident benefits, property claims, andconformance to governmental health and safety standards.

EMPLOYEE REPRIMANDThe Employee Reprimand will provide nature of warning, frequency ofviolation, occurrence date, time and location. Additionally, supervision recordsthe specifics of the incident. This information can be helpful to determine theextent of management action to be taken. Action may entail warning, probationor possible termination.

TERMINATION NOTICEThe Termination Notice will provide the type of termination, specific reasons fortermination, benefit cessation schedule, and calculation of final pay cheque. Thisinformation is critical to lessen the chances of misunderstanding or legal actionon the part of the employee.

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

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Personnel Evaluation - Personnel File


PLAN • There is a written compensation plan foreach job classification outlining the followingpoints:• Salary 10• Incentives 10• Customer Satisfaction 9

• Compensation of employees is accomplishedin accordance with written plan 10

• Compensation for employees is competitivewith other Dealerships in the area 10

ADMINISTRATION • The Parts Manager receives and reviewsmonthly compensation data of Departmental employees 10

• Immediate supervisor participates inestablishing pay levels for job classificationand merit increases for their subordinates 10

• Incentive plans have the following goals:• Improved Profitability 7• Improved productivity 7• Improved Efficiency 7

• Annually, employees are provided a Compensation Summary outlining allremuneration including benefits 10


55


Compensation Plan - Evaluators

NEED OF WRITTEN PLANConsistency is the best way to show employees fair and equitable treatment. It isonly with a written compensation plan that you can provide consistency,especially in a changing market. Compensation is usually the number oneconcern of most employees. It is important to them not only from the standpointof meeting their own personal obligations, but also determining their own worthand value amongst other workers.

A written compensation plan will also aid the accomplishment of the overallpurpose, 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

SALARYA compensation plan is broken into three categories: salary, incentives, andcustomer satisfaction. Each has a distinct purpose and impact on an employee’smotivation to do the total job. A salary or hourly rate is intended to compensatethe employee for standard or competent job performance. Again, these standardsshould be outlined in the written job description for each classification.

Some variance in salary or hourly rate may exist due to recognition of time orexperience. For example, the job classification of a Counter Person may have ascale 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 forMiddle East purposes.

The variance in salary or hourly rate may also include incremental increasesbased on performance evaluations. For example, the job classification of aCounter Person may have increments as follows:

• Outstanding (Far Above Standard) – 7–10% 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 onthe entire job to be done. This portion of the employee’s compensation shouldbe 60-70% of the total.

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Compensation Plan - Plan

INCENTIVESIncentive are intended to accentuate the specific goals or objective of theDepartment. Incentives are paid when the employee maintains above standardperformance, helping the Department achieve greater profitability. Incentives aremost effective where job performance is quantitative and where the volume ofwork is directly proportional to the employee’s performance.

The types of incentives are multifaceted. The higher up the financial statementthe pay plan is based, the more complex it is to determine how much profit anemployee’s effort produces for the Dealership. Incentives can be based on thefollowing 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 incentiveplan. Dependent upon the criteria deemed most critical by management, thedirection and motivation of employees can be targeted. It is recommended thatthe incentive plan be kept simple and easy to administer. No more than twodifferent criteria should be used to comprise an incentive plan. This portion ofthe employee’s compensation should be 10-20% of the total.

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CUSTOMER SATISFACTIONCustomer Satisfaction is the life blood of any business. It is the key to bothsurvival and growth. This has to be stressed to all levels of the organisation. Toomany times, employees treat customer inquiries as interruptions, when in reality,they are the purpose of our existence. Some car manufacturers provide theirdealers with a Customer Satisfaction Index (CSI)) you could also devise one ofyour own.

If you must rely on your own tabulations, several measurable factors areavailable. 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 assistanceprovided

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 wantto discuss with the Dealer the four goals involving Customer Satisfaction andtheir 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 employee’s compensationshould be 10-15% of the total.

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ENVIRONMENTAL FACTORSOnce all three elements are brought together: salary, incentives and customersatisfaction, the total compensation depends on six Environmental Factors.

• The Going Rate – The same “job” means the actual job to be done, not justthe same job title. The going rate includes not just base pay, but also fringebenefits

• Jobs to be Done – Higher than going rate may be needed where there areobstacles to overcome such as poor location, previous mishandling, or pooravailability. Lower rates may be possible where pay is earned with less effort

• People Availability – the Dealership may have to pay more/less dependingon working conditions as compared to other Dealerships

• Employee’s Values – Adequate pay for a given job will vary with eachemployee’s idea of what they think they are worth. Unless you can meet it,or promise it in the future, dissatisfaction is likely and turnover highlypossible. High turnover and difficulty in recruiting are signs that acompensation plan may be poorly designed

• What the Dealership Can Afford – This can be determined by forecastingthe contribution the employee will make to the Dealership in terms ofrealistic operating results. These reports are the “standard” job for whichthe Dealership will have to pay the going rate, and from which any varianceor incentives are formulated in order to pay for performance

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WRITTEN COMPENSATION PLANA written compensation plan is only a partial solution to recruiting and retainingqualified personnel. Implementation and adherence to the written plan is crucialto the accomplishment of:

• Non-discrimination – equal pay for equal work

• Consistency – Dealership’s objectives of improved customer satisfactionand increased profitability are achieved

• Predictability – personnel expenses and departmental net profit can beforecasted accurately

In addition to the written compensation plan outline, a manager should beassigned the responsibility of implementation and coordination. The Managermost qualified to accomplish this task is the Business manager or Comptroller inconsultation with the Human Resource Manager. The coordination effort willensure that policies concerning compensation are strictly adhered to, andequivalent job classifications are in line with each other. The co-ordinator canalso orchestrate the department manager’s annual review of pay levels and meritincrease for individual job classifications.

NEED OF A COMPETITIVECOMPENSATION PLANA competitive compensation plan will ensure the recruitment and retention ofqualified 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. Whilethese expenses are difficult to measure, one worldwide manufacturer hasestimated cost at $100,000 per employee turnover.

Not only are costs incurred, but the organisation as a whole suffers from lowmorale, lack of teamwork and the failure to achieve sales and profit objectives. Asynergistic effect can be gained from a competitive compensation plan.

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MEASURING COMPETITIVENESSDetermining the competitiveness of your compensation plan is not an easy task,but it can be accomplished. As mentioned earlier, the first indication ofinequities in pay is employee turnover. To alleviate this occurrence use one ormore 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 crucialto the overall effectiveness of the compensation plans. Whenever information iscollected, it should be directed to the Business Manager or Comptroller forreference at the Manager’s 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

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PURPOSE OF A MONTHLY REVIEWThe purpose of the Parts Manager’s monthly review of compensation forDepartmental employees is for control and accountability. Any Manager that isheld responsible for Departmental profitability must be aware of Departmentalexpenses. In most Dealerships, personnel expenses comprise 50-55% of totalexpenses, or stated differently, 44-48% of gross profit. Needless to say, it is thegreatest expense incurred by the Department, having the greatest impact on netprofit

In order for the Parts Manager to control personnel expense, he must have accessto the data. Hopefully, his access to compensation data will allow him to forecast,organise, and control expenses, thereby maximising productivity andprofitability.

MECHANICS OF A REVIEWIn order for the Parts Manager to conduct an effective review of theDepartment’s compensation data, he will need to develop comparativeinformation.Some of the comparisons would include:

• Cost of Sale per employee, per month $12,000*• Gross Profit per employee, per month $14,000*• Personnel Expense as a percent of sales 13%*• Personnel Expense as a percent of total expenses 50-55%*• Personnel Expense as a percent of gross profit 44-48%*

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

The Parts Manager’s review should also include examination of payroll recordsas a means of evaluating individual performance. Only in this way can a PartsManager assure that employees are paid according to their contribution to theDepartment.

SUPERVISOR PARTICIPATIONIn the development of compensation plans it is important to pay according toperformance. Because the immediate supervisor is the person closest to theemployee’s day-to-day performance, they are in the best position to evaluate theemployee’s contribution.

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Compensation Plan - Administration

The immediate supervisor should be consulted whenever pay levels or meritincreases are to be reviewed or adjusted. Where practical, it is suggested that theimmediate supervisor observe and document job performance on a continuingbasis and initiate merit increase to the Parts Manager. These recommendationsshould then be the basis for discussion by management at the annual reviewsessions.

It should be emphasised to all employees the influence their immediatesupervisor has on job classification, pay levels, and individual merit increases.

GOALSThere is no doubt that routine pay increases are effective in motivatingemployees. Too frequently, however, these increases become automatic and areexpected by the employee. Without measurement of an individual employee’scontribution, pay for performance is not assured. If, however, goal setting andachievement are used as a basis for compensation, the Dealership’s goal of payingfor performance can be attained.

INCENTIVE PLAN DESIGNTo have an effective incentive plan, there must be agreement between managerand 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 repairorders” versus “no cars tied up waiting for parts”.

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GOAL: IMPROVED PROFITABILITYThe goal of any business is to continually improve profitability. This goal can beachieved in one of three ways:

• Increased sales

• Increased gross profit retention

• Decreased expenses

Increased profitability should not be only management’s concern, but theconcern of all the Dealership’s employees. The only way to generate employeeconcern is to level a degree of accountability on them. This degree ofaccountability must meet the designed criteria already discussed to be effective.Department goals also imply teamwork and peer pressure. They typically includethe 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, andwithin the contribution realm of the employee.

GOAL: IMPROVED PRODUCTIVITYImproved productivity is well within the control of most employees, sinceproductivity is the measure of one’s effort. The benefits of improved productivityare increased sales and decreased expenses, either directly or as a percentage ofsales. Productivity goals can be:

• Internal Sales– Per counter person– Per repair order

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• 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 EFFICIENCYImproved efficiency is another management goal that is well within the controlof most employees, since efficiency is the measure of one’s productivitycompared to costs. The major benefit of efficiency is the savings to be realised intime, 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

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• 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 incentiveplan on controllable and results-oriented factors.

The purpose of an incentive plan is to focus the employee’s attention, concernsand efforts toward the overall objectives of the Dealership. Incentive plans areeffective if they are understood and achievable by all the parts involved. And, therewards for achievement must be perceived as rewarding by the recipient.

For additional incentive ideas refer to the Standards of Performance sections inthe sample Job Descriptions located in Appendix A.

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PERSONAL COMPENSATION SUMMARYAn annual Personal Compensation Summary serves as a reminder to employeesof the total compensation received from the employer. It is human nature toforget and to take for granted benefits and income plans that are usedinfrequently. Oftentimes, the lure of more pay is tempting to a good employee.They sometimes fail to stop, think and compare the total compensation planbeing offered by a competitor.

The Personal Compensation Summary serves as a constant reminder of what youare offering in terms of pay, benefits and income security, and retirement. Yourefforts to provide such employee security will go un-rewarded if it goesunrecognised.

CONTENTThe contents of a Personal Compensation Summary should include thefollowing 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.

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68


Compensation Plan - Decision Grid

COMPENSATION PLAN THOUGHT CHECKLIST


COMPENSATION To attract employeesPLAN Retain good employeesPURPOSE Encourage productivity

Control employee timeControl employee activityPromote efficiency

MEET THE If Parts Department personnel makeFOLLOWING more money, does the DealershipSTANDARDS When the Parts Department

make more money, do the employeesbenefit Is the pay plan stable so it does not haveto be modified if business volumes changeIs it simple and easy to understandDoes it reinforce the job descriptionIs it fair and attractive to cost of livingDoes it provide for getting established… an opportunity for advancementDoes it relate to factors that are under the employees controlIs it based on performanceDoes it provide prompt payment of earningsIs it competitive in the marketplace

?

?

?

???

?

??

?

?

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Communication - Evaluators


REVIEW • A written Performance Evaluation is provided to each employee at least annually 10

MEETINGS • The Dealership conducts managementmeetings monthly 10

• The Parts Department conducts Departmental meetings monthly 10

FINANCIAL • The Parts Manager receives monthly RESULTS financial results and trend information

affecting the Parts Department• Sales and gross profit 8• Stock order allowances 8• Inventory 10• Expenses by individual accounts 8• Departmental profit/loss 8• Other trends and data 8

DEPARTMENTAL • The Dealer or General Manager alongOBJECTIVES with the Parts Manager establishes

monthly objectives 10• The Departmental objectives and results

are regularly communicated to employees 10

TELEPHONE • Telephone communications incoming and outgoing to the Parts Departmentare effectively handled 10


Good communication within the Dealership’s parts operation is essential. Themajority of problems experienced in the Department usually reflect a lack ofcommunication.

SKILLSBasic communication skills include four points:

• Listening and Observing – the process of taking in information fromsomeone 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 betweenyou and the person communicating with you, and determining whether ornot 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 withinthe Parts Department alone, but between all departments as well. The PartsDepartment forms the hub of the Dealership, which all of the Departmentsinterface with and rely upon. Observe the diagram shown.

It’s fairly well recognised in the industry that the Sales Department makes thefirst sale, but repeat business depends upon the service delivered after the sale.The Parts Department not only supports the Service Department, but all theother departments both directly and indirectly. The New Vehicle Departmentneeds availability to provide accessories for its new vehicles. The Used VehicleDepartment needs availability to support its reconditioning effort. The Financeand Insurance Department depends on the Parts Department to provideavailability of chemicals to perform rust proofing, fabric coating, paint sealants,etc. And, both the Service Mechanical and Service Body Department rely on theParts Department for availability of mechanical and crash parts.

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Communication - Introduction

PARTS DEPARTMENT – DEALERSHIP’S HUB

Customer

NewVehicle

Department

Used FinanceVehicle Insurance

Department Department

Parts Department

Service Service Mechanical Body Department Department

Competition

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Communication - Introduction

Support(Secondary Repairs)

DEALERSHIP MANAGEMENTAlone, the Parts Department cannot assure total customer satisfaction. Thisrequires the combined efforts of all departments and managers. Only with a totalDealership effort will customers receive the products, services, and treatmentthat will provide the competitive edge.

PLANNINGBringing together all the Dealership’s department managers monthly andconducting an effective meeting requires both planning and active participation.To aid your planning, it is recommended that an agenda be completed andcirculated prior to the meeting. This will allow the managers to organise theinformation necessary for their individual input. By actively involving eachmanager, participation and co-operation can be enhanced.

SHEDULINGThe Scheduling of the management meetings is crucial to their success. MostDealerships schedule their meetings as soon as feasible after the release of theMonthly Operating Report. This permits a timely review and forecasting for theupcoming month.

CONDUCTING A MANAGEMENT MEETINGSitting together, the Dealer or General Manager should chair the meeting,thereby keeping the session moving in a predetermined direction. The purposeand resolutions to be decided upon should be stated at the beginning of themeeting. Each department manager should then be called upon to providehis/her report regarding the subject under discussion. At the conclusion of themeeting, each subject discussed should be enumerated along with its finaldisposition. To help organise your meetings, a sample agenda is shown inAppendix A – Communication.

The same basic guidelines that apply to management meetings also apply todepartmental meetings.

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Communication - Meetings

CONDUCTING A DEPARTMENTAL MEETINGDuring each regularly scheduled Department meeting, the Parts Manager shouldreview 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 listwould 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 andfeedback from the employees. Oftentimes, they can provide logical explanationsas to why certain objectives were easily attained or not. Often these reasons canbe categorised as job interferences such as lack of manpower, time, carrierproblems, inaccurate documentation, computer downtime, shortages, etc.Unless the Manager is made aware of these obstacles, the problem is likely torepeat itself. This is why employee feedback is so critical.

The knowledgeable Manager offers problems for his employees to solve. This notonly develops a sense of teamwork, but makes the tasks necessary to resolve theproblem more palatable to the workers.

To help organise your meetings a sample agenda is shown in Appendix A.

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Communication - Meetings


PURPOSEThe purpose of the Parts Manager receiving monthly financial results and trendinformation is quite obvious. How can anyone be expected to pilot the shipwithout being able to read the charts? For the Parts Manager to do an effectivejob, he must know where he is headed financially. The financial results and trendinformation serve as indicators to the manager, reflecting previous operationaldecisions 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 withhis section of the Operating Report. Additionally, each expense allocation byindividual account will be shown. This information is helpful to the PartsManager in determining the effectiveness of his expense control.

If, for whatever reason, Dealership management does not desire to share all theinformation previously discussed, a Daily Operating Control (D.O.C.) sheet canbe prepared indicating only that information management is willing to share.

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Communication - Financial Results

PURPOSEThe Dealer or General Manager should work with the Parts manager to jointlyestablish Departmental objectives. The job of any Dealer or General Manager isto provide direction to his departmental managers. Without this direction, therisk is run that the effort of the whole will not be synchronised with efforts of itsparts. For the Dealership to achieve its overall objective whether sales, profits, orcustomer satisfaction, all departments must be organised and working in concertwith one another.

By establishing objectives jointly, the Dealer or General manager is afforded theopportunity to receive direct feedback from the Parts Manager.

OBJECTIVE SETTING PROCESSThe process of setting monthly objectives should begin with a review of theprevious month’s results. As each objective is reviewed, it should be determinedwhy and how the objective was attained or not attained. The why and howresponses provide the true and meaningful answers to operational decisions.

The key, or staring point, for most Parts Departments’ effective forecast beginswith the Service Department. Internal sales or parts sold on repair ordersgenerally account for over 50% of the Parts Department’s total sales. Next inorder of priority would be wholesale, retail, and internal sales (to otherdepartments). This may vary from dealership to dealership, but no departmentstands alone – they are all interdependent.

Objectives may include either financial or non-financial results. Below is listed asample of both for consideration.

PARTS DEPARTMENT OBJECTIVES

FINANCIAL NON – FINANCIAL• Sales • Lost Sales• Gross Profit • Emergency Purchases• Expenses • Cars Tied Up Due to Lack of Parts• Department Profit • Housekeeping and Safety• Inventory Value • Customer Satisfaction• Obsolescence Value • Interdepartmental Relations• 6 Months No Movement • Space Utilisation• 12 Months No Movement • Warranty Handling• R.O.S. • Scrap Handling• G.R.O.I.I. • Core Handling• P&A Adjustments• Discounts Earned• Turnover

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Communication - Departmental Objectives

EMPLOYEE COMMUNICATIONThe purpose of communicating both objectives and results to employees is tomotivate and direct their efforts. Frank and open discussion of Dealershipobjectives and results is the most effective way to achieve clear understanding.Employees do a better job when they are given an overview of the Company’sobjectives and how their efforts help to achieve them.

PROCESSCommunication of both objectives and results can occur by five differentmethods:

• 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

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Communication - Departmental Objectives

NECCESSITYMost incoming telephone calls are from customers. For this reason alone,telephone etiquette takes on added importance. Employees who are responsiblefor answering the telephone should be reminded that when the phone rings it’sa customer wanting information or to place an order. The telephone should beviewed as a sales tool and priority, not an interruption.

Each time a customer calls, an impression is made. Employees should be taughtto talk in a positive and affirmative manner. Listed below are tips on effectivetelephone use:

TELEPHONE ETIQUETTE

• Always answer by the third • Do not rushring • Show consideration and

• Avoid putting the caller on helpful attitudehold • Listen attentively and get all

• Smile when you answer the facts(positive attitude) • Do some additional selling

• Use your name and • Always let the caller hang upidentify the Dealership first

• Get the caller’s name and • If you promise to call backuse it with information – do it

• Be friendly promptly

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Communication - Telephone

EQUIPMENTNothing can be more frustrating to a customer than being put on hold orhearing a busy signal. The type of equipment, number of instruments, andfeatures should be carefully considered and evaluated based on the volume ofincoming and outgoing calls.

Also, the call routing should be evaluated. Many Dealerships have found thatdirect lines versus switchboards alleviate having to put the customer on hold.Dealerships selling extensively in the wholesale market have found toll-free lineseffective in promoting additional sales.

To assist you in evaluating your telecommunications system, consider contactingyour local telephone representative. Generally, their surveys are in-depth and freeof charge.

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Communication - Telephone

79


Training and Development - Evaluators


PLAN • A training and development plan isdeveloped for each Employee within the Department 12

• Each training and development planis evaluated:• Management annually reviews and

revises 12• Employees periodically record and

evaluate 12• Each employee’s training and development

plan and its progress is documented andretained in their personnel file 12

RESOURCES • The Parts Department maintains a trainingresource library 10

• The Parts Department develops a needs analysis of training courses and training materials annually 10

• Employees receiving training outside the Dealership, share their knowledge and skills with other employees 10

EVALUATION • The Parts Department conducts an evaluation of all internal and external training utilised 12

• Employees are recognised and rewarded for successful completion of trainingcourses 10


USESA “Training and Development Plan” allows the manager to evaluate the trainingneeds of an individual employee, select the training most appropriate, and followup on progress. If this plan is maintained and kept in an employee’s PersonnelFile, it will provide the necessary information for the Performance Evaluation’sAction Plans.

PROCESSThe intent of the plan is to ensure that the training is necessary and that thetraining selected provides the appropriate skills or knowledge needed.

In order to identify training needs, an inventory of the employee’s job skills isrequired. Skills needed for the same job classification are identical. Take the timeto 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 SkillsInventory is shown in Appendix A.

Next, compare the skills that have been rated on the Skills Inventory andcompare them to the responsibilities shown in the employee’s Job Description.If there are responsibilities on the Job Description that are not indicated on theSkills Inventory, training is needed. If the employee is being developed orconsidered for a promotion, compare the responsibilities of the Job Descriptionfor the higher level job classification to his Skills Inventory. This step willincrease the employee’s readiness level.

CONTENTAfter you have identified each employee’s skills and made a comparison to eithertheir 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 thoseresponsibilities the employee should know how to do, but either does notdo at all or does unsatisfactorily

• To maintain a skill – All employee’s skills must be kept up-to-date. Everyyear 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 jobclassification

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Training and Development - Plan

To help keep this information organised and up-to-date, it is recommended thatthe employee’s Training and Development Plan be documented and retained inthe employee’s Personnel File. A sample Training and Development Plan isshown in Appendix A.

EVALUATIONTo assure that the Training and Development Plan is not initiated and thendropped, 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 employee’s AnnualPerformance Evaluation. Reasons for more frequent review would include thefollowing:

• During Special Evaluations, especially if the reason is for poor performance

• When job performance begins to decline. For example, incorrect invoicingor customer complaints

• When new equipment or technology is introduced to the Department,such as computers

• When an employee is transferred, promoted, or given new jobresponsibilities

MANAGEMENT PROCESSThe process by which the Training and Development Plan is reviewed andrevised is identical to the original development of the plan.

• Re-evaluate and update the employee’s Skills Inventory

• Review the employee’s 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 inthe employee’s Personnel File, the review process is easily accomplished.

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EMPLOYEE PROCESSEach employee should be encouraged to both record and evaluate their progresstowards the goals of their own Training and Development Plan. This starts at thebeginning when the plan is being developed. Besides placing a copy of the planin the Personnel File, each employee should receive a copy.

By monitoring their own progress, employees become actively involved in theplan. This process generates employee commitment and further guaranteedsuccess.

DOCUMENTATIONAs previously mentioned, the employee’s Training and Development Plan shouldbe documented and retained in the employee’s Personnel File. By doing so, timeand energy can be saved in the entire personnel management process. Personnelmanagement relies heavily upon documentation. And, documentation reliesupon several bits and pieces of information that, when combined, represent aclear and concise picture of an employee’s history.

USESThe employee’s Training and Development Plan can be used to:

• Develop Action Plans for the employee’s Performance Evaluation

• Determine cause(s) of performance problems

• Improve employee’s job performance

• Determine training’s cost effectiveness

• Provide a systematic method of preparing employees for promotions andtransfers

• Enhance employee morale

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LIBRARYTraining can be in-house (internal) or outside the Dealership (external). Toprotect the Dealership’s investment in training materials and to ensure theiravailability, a resource library should be maintained. This library should bemaintained by the Parts Manager or by his assistant. Their functions wouldinclude maintenance and cataloguing of the various resource materials on hand.By cataloguing, time can be saved when materials are needed, plus money can besaved by eliminating duplication.

AVAILABLE MATERIALSThe 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 whatyou currently have on hand and the audio-visual equipment required to usethem.

Shown below is a sample Catalogue Card which can easily be replicated on a 3x5index card.

TRAINING MATERIALS – CATALOGUE CARD

Subject: Out In User

Title:

Medium:

Source:

Cost:

Updated:

Comments:

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Training and Development - Resources

ANALYSISThe first phase in training is the development of each individual’s skills. After allthe Department’s employees have been evaluated, this information needs to becombined to develop the total Department’s training needs. Once the totaltraining needs have been determined the next phase is to select and schedule thetraining and development necessary.

The benefits of analysing and developing Departmental training needs areefficiency and cost effectiveness.

INTRODUCTIONThree 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

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

INTERNAL VERSUS EXTERNALThe determination between internal and external training has several factorswhich 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

SCHEDULINGOnce you have budgeted for and determined the training required, courseselection and scheduling can be done. Schedule the training during slow periodsto diminish disruptions. Remember, training can create a manpower shortage.Plan for this shortage, so other employees do not become frustrated and criticaltasks go undone.

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PURPOSERegular participation in training keeps your employees up-to-date in bothproduct and technological changes. They offer the most effective methods ofachieving customer satisfaction.

There are times when several employees need the same training. Often, it isunrealistic to expect total participation due to time and expense. Instead, yousend one person to the programme anticipating the skills and knowledge to beshared with the person’s peers.

PREPARATIONThe attendee should be prepared to take complete notes and possibly tape recordthe key elements within the course. Let the employee know in advance of hisattending the course to ensure maximum effectiveness.

SELECTIONThe best selection of a participant who will be expected to train his/her peers, issomeone that already possesses moderate proficiency in the skills to be taughtand who has good communication skills. Go over the course outline with theparticipant in advance and emphasise the areas that are most important to yourDepartment.

Upon the participant’s return from the training course, debrief the person byreviewing the manual or other handouts. Ask what the instructor stressed andwhat the participant felt were key “learning” points. After the debriefing, beginan outline for the topics jointly decided upon. Then determine the best methodof delivery to peers, group or one-on-one, and the equipment necessary for thetraining.

Provide support. Do not expect the employee to plan and conduct the trainingon his/her own. Offer the help deemed necessary and then follow through.

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PURPOSEThe purpose of evaluation is to determine its impact on the Dealership andwhether it was cost effective. Once you have evaluated the training, you canmake 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

PROCESSThe steps involved when evaluating a training activity include:

• Measuring participant’s 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. “Performancemeasured is performance improved”. What this means is that students whoseknowledge is tested will strive harder to learn. The tests can be verbal, written, oran observed drill. They need to be comprehensive enough to provide reassuranceto management.

The impact on customer satisfaction will be longer term. Look for indicatorssuch as customer comments, improved Customer Satisfaction Index, reductionin returns, and increased sales.

VALUERecognition for a job well done is always appreciated. At a minimum, praisegiven for successful completion of a course instils pride, confidence, andmotivation. Your investment in both time and money will pay big dividends tothe Dealership.

REWARDS AND RECOGNITIONInvolve your employees in the awards process. Make presentations in thepresence of peers at the monthly Departmental meeting or Dealership’s annualawards banquet. Make such activities both fun and worthwhile.

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Training and Development - Evaluation

87


Termination - Evaluators


POLICY • There are written policies regarding termination procedures which outline:• Reasons for involuntary termination 10• Reasons for voluntary termination 10• Employee disposition 5• Exit interview 5• Retention of documentation in

personnel file 10

DISCIPLINARY • Dealership has written policies regarding disciplinary reprimand or probation which outline:• Reasons for reprimand or probation 10• Duration of probation 5• Conditions of reinstatement 5• Retention of documentation in personnel

file 10

LEAVE OF ABSENCE • Dealership has written policies regardingLeaves of Absence which include:• Reasons for Leaves of Absence 10• Duration of Leave 5• Employee disposition 5• Retention of documentation in personnel

file 10


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Termination - Policy

INTRODUCTIONThis qualifier is intended to assist the Dealership in developing a TerminationPolicy that will help avoid legal action and provide appropriate documentationshould litigation occur.

NECESSITY OF POLICYMost Dealerships hire potential candidates for long term employment. It is tothe benefit of both parties that the relationship be long lasting. The companyenjoys greater productivity, efficiency and continuity, while the employee enjoysfinancial security and personal growth. However, conditions sometimes arise thatmake termination unavoidable.

Management’s right to terminate its employees has been infringed upon duringthe last decade, however, employees are bringing legal action against theiremployers with greater frequency. The legal action seeks either reinstatement ofemployment or punitive damages. Due to these societal changes, it is imperativethat Dealerships have a written Termination Policy that is within the law.

It is strongly recommended that legal counsel review your termination policieswhen complete.

INVOLUNTARY TERMINATIONInvoluntary termination is the act of releasing an employee for eitherunsatisfactory job performance or violation of company policies or procedures.These legitimate reasons by themselves, however, need to be supported byadditional contingencies.

UNSATISFACTORY JOB PERFORMANCE

Contingencies Verification

• Are job requirements mutually understood? Job Description

• Does objective measurement reflect Job Standardsunsatisfactory job performance?

• Has feedback on job performance Performance Evaluationsdeficiencies been provided to employee?

• Has reasonable effort been extended to Training & Developmenthelp overcome performance deficiencies?

VIOLATION OF COMPANY POLICIES AND PROCEDURES

Contingencies Verification

• Have policies and procedures been Employee Handbookfully communicated to employee?

• Has enforcement of policies and Personnel Filesprocedures been consistent and uniform?

• Has confusion and misunderstanding, Employee Reprimandswhich possibly led to violation, beeneliminated?

VOLUNTARY TERMINATIONSVoluntary termination is the separation of employment at the employee’srequest. The reasons for separation are typically:

• Retirement

• Medical Disability

• Other Employment

RETIREMENTRetirement plans outlining age requirements, length of service, and benefitsusually predetermine the effective date and allow it to be anticipated. There areoccasions, however, when either management or the employee desires an earlyretirement. These conditions and subsequent benefits should be predeterminedand outlined in the Dealership’s retirement plan.

MEDICAL DISABILITYMedical disabilities are physical conditions or handicaps that prohibit theemployee from performing their job. Since most Dealerships have coverage,either government sponsored or private disability insurance, the degree ofphysical disability, duration and benefits are predetermined and outlined in theinsurer’s policy. For protection against bogus claims, it is recommended that adesignated company doctor verify the disability.

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OTHER EMPLOYMENTEmployees leave for real or perceived “better opportunities”. The employee’sreasons could include more pay, better benefits, better working conditions oradvancement. If the Dealership has done its job well in creating an environmentconducive to employee morale and betterment, turnover can be minimised.

Exit interviews offer an excellent opportunity for management to evaluate theirown personnel management practices. This evaluation will pinpoint areas ofnon-competitiveness and in some instances recover a good employee.

EMPLOYEE DISPOSITIONIn both types of termination the employee has certain rights and privilegesregarding his/her benefits. The conversion provisions should be clearly definedin 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 payoutif a specific calendar date of length of service is attained. These employeeentitlements should be communicated to the employee at the time of discharge.A sample Termination Notice is shown in Appendix A.

EXIT INTERVIEWSExit interviews for both voluntary and involuntary terminations should beconducted. The purpose of the interview is:

• To handle the administrative details, as explained in “EmployeeDisposition”

• To explain the reasons for termination, if involuntary

• To learn the employee’s opinion of the Dealership’s employment practices,if voluntary

A sample Exit Interview is shown in Appendix A.

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91


Termination - Disciplinary

INTRODUCTIONThis Qualifier is intended to assist the Dealership in developing a disciplinarypolicy that will help avoid legal action and provide documentation shouldlitigation occur.

NECESSITY OF POLICYMost employees want to do a good job and respect the rights of others. They alsoexpect fair and consistent treatment from management. To help achieve theseobjectives, in addition to establishing job standards and shop rules, theconsequences for behaviour deemed inappropriate must be clearly defined.

Consequences may include employee reprimand or probation or a progressionalseries of both.

REPRIMANDEmployee reprimand is the first step in disciplinary procedure. Reprimands canbe either verbal or written. If the warning is verbal, it should still be documentedin the employee’s personnel file. Written employee reprimands serve as a formalnotice to the employee for either a more serious or repetitious infraction. Allunsatisfactory job performances and violations of Company Policies andProcedures should follow a disciplinary sequence outline, unless otherwise statedin the Employee Handbook as “immediate dismissal”.

DISCIPLINARY SEQUENCE• Verbal warning

• Written reprimand (usually third warning is cause of probation)


• Specific probation period (failure to correct action results in termination)


A sample Employee Reprimand is shown in Appendix A.

INTRODUCTIONThis Qualifier is addressed under the section titled “Termination” since itpertains to temporary separations and occasionally results in permanentseparations.

NECESSITY OF POLICYIt’s a predictable occurrence that two out of three employees will experience aLeave of Absence for one reason or another during their working life. Forpurposes of providing employment security and details of an employee’sentitlements, it is important that your Dealership have a policy relating to Leavesof Absence.

As stated previously, a Leave of Absence is the temporary separation of anemployee. The permissible reasons for leaves depend upon two factors, statutorylaws and Dealership policies. Statutory laws are enacted to protect the rights ofemployees. They usually address medical leaves (including maternity), jury duty,and military duty. Other types of leave including medical leave, educational leaveand other special leaves, are offered optionally by the Dealership. Special leavesshould include the disclaimer “at Management’s discretion”. Reasons for leaveshould be clearly defined and stated in both the Policies and Procedures Manualand the Employee Handbook.

DURATIONThe length of the Leave of Absence will vary according to its nature and criticalimportance of the position left open. Suggested time lines should be outlined,with the option to extend the leave “at Management’s discretion”. Sample timeframes are listed below.

LEAVE OF ABSENCE DURATION

• Medical Leave 1 year maximum– Maternity 3 months prior to due date, plus 3 months after

delivery

• Jury Duty As required

• Military Duty As required

• Extended Medical Leave At doctor’s advisement, maximum 1 year extension

• Educational Leave 1 year, renewable upon successful completion ofcourses

• Special Leave At management’s discretion

92


Termination - Leave of Absence

PARTS DEPARTMENT

PERSONNEL FORMS

The forms contained in this Appendix have been arranged to correspond withthe sections of this Module that they pertain to. (Notation indicated at the topof the page directly under the page header.) The individual forms can be utilisedby the Parts Manager in the day-to-day operation of the business.

Taken together, the forms represent the basis for a Policies and ProceduresManual.

A-1


Appendix A

A-2


Appendix A - Introduction

A-3


Appendix A - Job Description




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.

Responsibilities and Authority

1. Be responsible for profit of Parts Department through salesof parts and accessories. This is accomplished through useof advertising and merchandising programmes as well ashaving personnel capable and motivated to satisfy customerneeds 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, materialreturn 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

dealership’s parts and accessories internal and warrantyrequirements as well as retail and wholesale customers.

8. Be responsible for establishing and maintaining purchase and ordering policy: Purchase order system, inventoryguides figures, order code status, etc.

9. Be responsible for establishing and maintaining warrantyscrap and core handling procedures: Location, docu-mentation, material returns, designating personnel, etc.

10. Be responsible for establishing and maintaining inventorystorage system: Equipment, bin locations, bin numbering,bin tags, etc.

11. Maintain Dealership equipment in effective working condition. Establish equipment maintenance scheduleswhere necessary. Advise management on equipment neededfor Department.

12. Be responsible for establishing and maintaining shipping/receiving policy: Wholesale routes, delivery timetablescheck-in and inspection, etc.

13. Use inventory control system processing procedures andmanagement reports that permit prompt, complete, and

accurate feedback of inventory condition. (Turnover,GROII, obsolescence, part ageing, guide quantities, lostsales, etc.)

14. Establish and maintain relationship with factory that resultsin sound working arrangements.

15. Initiate housekeeping, safety, and security procedures that result in safe and attractive working environment.

16. Use job classification work standards and job descriptionsto monitor and measure individual employee’s effectiveness.This information is then fed back to employee on formalappraisal.

17. Maintain catalogues, price schedules, and other technical bulletins that are convenient to employees needing them.

18. Establish and maintain good working relations with otherdepartments to reduce conflict and maximise dealerprofitability.

19. Prepare for and participate in meetings with management and other department heads.


Relationships

1. Reports to: Owner (General Manager, or Parts and ServiceDirector).

2. Supervises: All personnel and managers in the Parts Department.

1. Parts Department sales meet monthly objectives establishedby 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.

Parts Manager

Parts 21 June 20

A-4






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

2. Helps dealership management achieve parts and accessoriesavailability and customer satisfaction.

3. Aids Parts Manager in achieving Department goals and objectives.


1. Maintain an efficient inventory control system by having counterpersons complete information on Repair Ordersand Counter Tickets. Information recorded should eitherindicate a sale or generate a special order for parts neededbut not in stock. Advise Parts Manager when individualpart numbers need to be added to inventory.

2. Help counterpersons locate correct part numbers and pricesin catalogue. Use such instances as training opportunities toteach counterpersons.

3. Identify training needs of counterpersons, wholesale sales-persons, inventory control clerk, stockers, and drivers andrecommend training to Parts Manager.

4. Approve and check all part returns to be sure they complywith dealership return policy and parts are in saleablecondition.

5. Maintain records on all customer and interdepartmentalcomplaints, so types and personnel involved can beidentified.

6. Participate in the hiring and orientation of parts employeesas directed by Parts Manager.

7. Formulate and execute plans with approval of Parts Manager.

8. Assist the Parts Manager in the maintenance ofperformance records on individual employees andevaluation sessions as directed.

9. Control excessive use of shop and office supplies bydepartment 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 inventorysecurity procedures are obeyed.

12. Protect dealership tools and equipment from abuse and see that proper maintenance is carried out. Recommendchanges 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 causesand preventing re-occurrence.


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 assurescomplete and accurate status of inventory and wholesalecustomers.

1. Parts and Accessory sales of $ are generatedper counterperson/month.

2. Stock order purchases are a minimum of 80% of totalpurchases.

3. Lost time accidents total up to no more thanper 100 Repair Orders.

4. Cars tied up awaiting parts remain belowper 100 Repair Orders.

5. Expenditures for shop and office supplies meet objectivesestablished by Assistant Parts Manager and Parts Manager.

6. Unannounced inspections of Parts Department show it tobe clean, neat, attractive and free of clutter.

Assistant Parts Manager

Parts 21 June 20

A-5






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.


1. Treat wholesale customers in accordance with dealershippolicies.

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 basicquestions 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 timeorder is taken covering cost, time, method of delivery andmethod of payment. (Particularly critical if first-time oroccasional customer.)

5. Interpret and explain parts warranty and dealership return policy to wholesale customers.

6. Get authorisation from wholesale customer when priceincreases or transportation charges cause original priceestimates to be exceeded.

7. Inform wholesale customer when delivery schedule cannotbe met.

8. Enter all wholesale orders into order processing and deliverysystem in the order in which they are received.

9. Identify orders that require special handling, such asemergency order, will call, special problem, incorrect parts,or NPN.

10. Follow-up on status of orders to assure that delivery will bemade as promised.

11. Contact wholesale customers at least weekly to solicit partsbusiness and follow-up on service to assure customersatisfaction.

12. Answer telephone parts inquiries.13. Keep Parts Manager informed of all problems and potential

problems involving wholesale customers.

14. Be up-to-date on product information on all vehicles soldby the dealership.

15. Refer leads and prospects for vehicle sales to new and usedcar sales departments.


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 anddelivery of parts to wholesale customers.

1. Wholesale sales of $ are generated permonth.

2. No complaints are received from wholesale customers aboutthe service they receive.

3. No complaints are received from inventory control clerks,stockers, and drivers regarding legibility of wholesale partorders.

4. No more than 5% bad debt experience with creditcustomers.

Wholesale Salesperson

Parts 21 June 20

A-6






1. Acts as principal contact between the Parts Department and both internal and retail customers for the sale of parts andaccessories.

2. Primary goals are to provide customer satisfaction and maximise dealership sales of parts.


1. Provide fast and courteous service to both technicians andretail customers.

2. List and price out on both Repair Orders and CounterTickets.

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 relationsand customer satisfaction.

1. Counter retail sales of $ are generatedper 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 orRepair 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 andspecial ordered parts.

7. Is proficient in the use of parts catalogues and location ofcurrent stocking bin.

Counter Salesperson

Parts 21 June 20

A-7






1. Receives and ships parts and accessories as directed.2. Maintains physical inventory as necessary.


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.

1. Dealership’s 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 spotmonthly.

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 orshortage claims.

Stocker

Parts 21 June 20

A-8






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.


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 informingmanagement of new business. Standards of Performance

Relationships

1. Reports directly to Assistant Parts Manager.2. Supervises no one.3. Maintains close working relationship with counter sales-

persons and wholesale salespersons to assure properhandling of customers and suppliers.

1. No complaints are received from customers or suppliers about the service they receive.

2. Details of dealership’s 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.

Driver

Parts 21 June 20

A-9






1. Maintains inventory control system.2. Provides inventory management reports.3. Primary goal is to provide customer satisfaction by assuring

parts availability.


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, binand location changes, etc.)

5. Transmit all parts orders after selecting the appropriate order status code.

6. Generate management reports as requested (such as, LostSales, Backorders, Emergency and Special Orders Status,Part Ageing, Obsolescence, etc.)

7. Inform management of existing or potential inventoryproblems (such as, stock outs, too high or too low guidefigures, obsolescence, NPNs, back orders and other delaysencountered, 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 inventoryinformation.

1. Dollar value of inventory control system and physicalinventory 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.

Inventory Control Clerk

Parts 21 June 20

APPLICATION FOR EMPLOYMENTAPPLICANTS 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 FRIEND RELATIVE

EMPLOYMENT AGENCY WALK-IN OTHER

NAME LAST FIRST MIDDLE

ADDRESS NUMBER STREET CITY STATE ZIP CODE

TELEPHONE ( ) SOCIAL SECURITY NUMBERAREA 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 COUNTRYBECAUSE OF VISA OR IMMIGRATION STATUS?

YES NO

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

A-10


Appendix A - Hiring

(PROOF OF CITIZENSHIP OR IMMIGRATION STATUS MAY BE REQUIRED UPON EMPLOYMENT)

Page 1 of 4

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

IF YES, PLEASE EXPLAIN:

ARE THERE WORKPLACE CONDITIONS WHICH WOULD ASSURE BETTER JOB PLACEMENT AND/ORENABLE YOU TO PERFORM YOUR JOB TO YOUR MAXIMUM CAPABILITY? YES NO

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 NATIONALORIGIN)

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

A-11


Appendix A - Hiring

Page 2 of 4

EMPLOYMENT EXPERIENCESTART WITH YOUR PRESENT OR LAST JOB. INCLUDE MILITARY SERVICE ASSIGN- MENTS AND VOLUNTEER ACTIVITIES. EXCLUDE ORGANISATION NAMES WHICHINDICATE RACE, COLOUR, RELIGION, SEX OR NATIONAL ORIGIN.

1 EMPLOYER WORK PERFORMED

ADDRESS

JOB TITLE

SUPERVISOR

REASON FOR LEAVING

2. EMPLOYER WORK PERFORMED

ADDRESS

JOB TITLE

SUPERVISOR

REASON FOR LEAVING


ADDRESS

JOB TITLE

REASON FOR LEAVING


ADDRESS

JOB TITLE

SUPERVISOR

REASON FOR LEAVING

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

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

DATES EMPLOYEDFROM TO

HOURLY RATE/SALARYSTARTING FINAL






A-12


Appendix A - Hiring


Page 3 of 4

EDUCATION

ELEMENTARY/ HIGH COLLEGE/ GRADUATE/PRIMARY SCHOOL UNIVERSITY PROFESSIONAL

SCHOOL NAME

YEARS COMPLETED 4 5 6 7 8 9 10 11 12 1 2 3 4 1 2 3 4 (CIRCLE)

DIPLOMA/DEGREE

DESCRIBE COURSEOF STUDY

DESCRIBE SPECIALISED TRAINING, APPRENTICESHIPSKILLS AND EXTRA–CURRICULAR ACTIVITIES

HONORS RECEIVED:

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

CONSIDERING YOUR APPLICATION

AGREEMENTI CERTIFY THAT ANSWERS GIVEN HEREIN ARE TRUE AND COMPLETE TO THE BEST OF MYKNOWLEDGE. I AUTHORISE INVESTIGATION OF ALL STATEMENTS CONTAINED IN THIS APPLICATION FOR EMPLOYMENT AS MAY BE NECESSARY IN ARRIVING ATEMPLOYMENT. I UNDERSTAND THAT THIS APPLICATION IS NOT AND IS NOTINTENDED 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. IUNDERSTAND, ALSO, THAT I AM REQUIRED TO ABIDE BY ALL RULES AND REGULATIONSOF THE COMPANY.

SIGNATURE DATE

FOR PERSONNEL DEPARTMENT USE ONLY

ARRANGE INTERVIEW YES NO

REMARKS

EMPLOYED YES NO

JOB TITLE HOURLY/RATE DEPARTMENT

BY NAME AND TITLE DATE

A-13


Appendix A - Hiring

DATE OFEMPLOYMENT

Page 4 of 4

JOB INTERVIEW REPORT POSITION

INTERVIEWER DEPARTMENT DATE

INTERVIEWER INTERVIEW FURTHER? YES NO

APPEARANCE BEARING EXPRESSION

JOBKNOWLEDGE MOTIVATION PERSONALITY

OVERALL IMPRESSION:

UNSATISFACTORY MARGINAL SATISFACTORY VERY GOOD EXCELLENT

ADDITIONAL COMMENTS

A-14


Appendix A - Hiring

INDIFFERENCETO ATTIRE

& GROOMING

BASIC, BUTWILL LEARNON THE JOB

SLIGHTLYOBJECTIONABLE

WILL NEEDCONSIDERABLE

TRAINING

LIKEABLE

EXTREMELYPLEASING

CHARMINGINDIVIDUAL

HIGHLYCONFIDENT,

INSPIRES OTHERS,ASSERTS PRESENCE

DOUBTFULINTEREST

IN POSITION

EXCEPTIONAL SPEAKS CLEARLY,CONCISELY WITH

CONFIDENCE IDEASWELL THOUGHT OUT

SINCERE DESIRETO WORK

NONE AS PERTAINS TO

THIS POSITION

NONE, APATHETIC,INDIFFERENT,

DISINTERESTED

UNPLEASANT

IMMACULATEATTIRE

& GROOMING

SPEAKS, THINKSCLEARLY, WITHCONFIDENCE

SPEAKS WELL, EXPRESSES IDEAS

ADEQUATELY

HOLDS SELF WELL, SEEMS

CONFIDENT

POOR SPEAKER,HAZY THOUGHTS,

IDEAS

OFTEN APPEARS UNCERTAIN,

POOR POSTURE

UNCOMMUNICATIVECONFUSED

THOUGHTS, POORVOCABULARY

WELLGROOMED

NO BEARING,LACKS CONFIDENCE,SLOVENLY POSTURE

SURE OF SELF,REFLECTS

CONFIDENCE

FUNCTIONALATTIRE, NEATLY

GROOMED

CARELESSIN ATTIRE,

POOR GROOMING

EXTREMELY WELL VERSED, ABLE TOWORK WITHOUT

FURTHER TRAINING

PLEASING

HIGHLYMOTIVATED,

EAGER TO WORK,ASKS MANYQUESTIONS

WELL VERSED IN POSITION, LITTLE

TRAINING NEEDED

STRONG INTERESTIN POSITION,

ASKS QUESTIONS

INTERVIEWING TIPS

• ASSURE PRIVACY – avoid interruptions when interviewing an applicant.

• PUT APPLICANT AT EASE – be warm and friendly, create a positiveatmosphere.

• 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 pre-employment 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


Appendix A - Hiring

TELEPHONE REFERENCE CHECK POSITION

APPLICANT COMPANY’S NAME

CONTACTED TITLE

CONTACTED BY TELEPHONE DATE

1. EMPLOYMENT DATES FROM TO

2. APPLICANTS’S POSITION TITLE

3. INFORMATION PROVIDED

QUALITY OF WORK

QUANTITY OF WORK

ATTENDANCE

4. WORKING RELATIONSHIPS

5. WHY DID THEY LEAVE?

6. ELIGIBILITY TO REHIRE YES NO

IF NO/WHY?

7. ADDITIONAL COMMENTS

A-16


Appendix A - Hiring

EMPLOYMENT NOTICE DATE

NAME DATE HIRED

POSITION PAY

DEPARTMENT SALARY

ASSIGNED CLOCK NUMBER HOURLY

DUTIES

SUPERVISOR

ORIENTATION ASSIGNED

COMMENTS

EMPLOYEE’S SIGNATURE

DATE

MANAGER’S APPROVAL

DATE

A-17


Appendix A - Hiring


Appendix A - Performance Evaluation

A-18

A-19



A-20



A-21



EXCELLENCE REPORT

Employee OCCURRENCE OF EXCELLENCE

Position Date

Department Time

Clock Number Location

Supervisor’s Remarks

Employee Remarks

Action Taken

Employee Signature Date

Supervisor Signature Date

Submitted By Date

A-22



PAYROLL CHANGE NOTICE

To: Payroll DepartmentPlease enter the following change(s) in your records to takeEffect

Employee

Social Security No. Clock No.The Change(s)

√ Check all applicable boxes From ToDepartment

Job

Shift

Rate

Reason For The Change(s)

Leave of Absence from Until

Other (explain)

Change Authorised By Date

Change Approved By Date

A-23


Appendix A - Compensation Plans

Probationary Period Completed

Length of Service Increase

Reevaluation of Existing Job

Resignation

Retirement

Layoff

Discharge

Hired

Re-Hired

Promotion

Demotion

Transfer

Merit Increase

Union Scale

PERSONAL COMPENSATION SUMMARY

Employee

Department Clock No.

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

Vision:

Explanation of Coverages Explanation of payments and duration

Major Medical: Layoff:

Explanation of Coverages Explanation of payments and duration



As important as your Paycheque is, it is only a part of your total compensationfrom this dealership. Adding significantly to your compensation – as well as yoursecurity and protection, and that of your family – are the best combined benefitsin the retail automotive industry. We are pleased to provide you with this updated summary of your benefits and their net worth to you. Your continuingcontributions to the success of this dealership help to make these outstandingbenefits possible.

Disability Income

A-24

Stock Savings Survivor Benefits (Cont’d.)

Non-contributory: Social SecurityShares & Value Amount and age of eligibility

Contributory Life Insurance – Non-contributoryShares & Value Amount and age of eligibility

Securities & Other Investments: Life Insurance – contributory:Shares & Value Amount and age of eligibility

Cash:Value

Total Value:Total Shares & Value

Profit Sharing

Earned – Total:Amount earned previous years

Total of Benefits

Earned – Year to Date:Amount earned and date payable

Survivor Benefits

RetirementAmount and age of eligibility

A-25



Lump-Sum Payments:• Non-Contributory Life

• Contributory Life

• Stock Savings

• Retirement (contributory)

• Social Security

• Profit Sharing

• Total: Amount

Additional Benefits:• Accidental Death

• Accidental Dismemberment

• While on Company business

• Total: Amount

• Salary

• Incentives Earned

• Cost of Benefits

• Vacation & Holiday Time

• Total: Amount

AGENDA – MANAGEMENT MEETING

Presiding: Attending:

Date: Department

Major Topic:

Notes:

Time Discussion Leader Subject Purpose Resolution

A-26


Appendix A - Communication

Page 1 of 2

IMPLEMENTATION WORKSHEET – MANAGEMENT MEETING

Team Leader: Team Members:

Date:

Resolution:

Resources

Plan Cost Time Equipment Physical People Impact on Phases Frame Required Space Involved Operations

Required

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Page 2 of 2

AGENDA – DEPARTMENTAL MEETING

Manager: AttendingDate:Major Topic:

Notes:

Review: Financial Results Review: Non-financial Results

Time: Time:

Discussion: Major Topic Discussion: Other Topics

Time: Time:

Time:

Time:

Time:

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Notes:

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Appendix A - Training and Development

SKILLS INVENTORY DATE

RATING SCALE EMPLOYEES

3=TRAINED, EXPERIENCED2=TRAINED, NEEDS EXPERIENCE1=NEEDS TRAINING, SOME EXPERIENCE0=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.

TRAINING & DEVELOPMENT PLAN

EMPLOYEE DEPARTMENT

CLOCK NUMBER POSITION

DATE TYPE REGULAR OR SPECIAL

EVALUATION ACTIVITY SELECTION FOLLOW-UP

*REASONS FOR COMPLETION TRAINING DATE

TRAINING NEEDS A B C TRAINING/ LOCATION PLANNED ACTUALDEVELOPMENT

ACTIVITY

* KEY A = TO CORRECT AN EXISTING PROBLEMB = TO MAINTAIN SKILLC = TO DEVELOP NEW SKILLS

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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 instructor’s 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:

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A-32

TERMINATION NOTICE VOLUNTARY INVOLUNTARY

REPORTED DATE TYPE:

EFFECTIVE DATE LAYOFF

EMPLOYEE RELEASE

POSITION DISCHARGE

DEPARTMENT 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


Appendix A - Termination

TYPE:

LAYOFF

RELEASE

DISCHARGE

IMMEDIATE DISMISSAL

EXIT INTERVIEW DATE

EMPLOYEE DATE HIREDPOSITION DATE OF SEPARATIONDEPARTMENT FORWARDING ADDRESSCLOCK NUMBER

REASON FOR SEPARATION

A. RESIGNATION: B. DISCHARGE: C. LAYOFF:

DISLIKED TYPE INABILITY TO REDUCTION INOF WORK HANDLE JOB WORK FORCE

DISSATISFIED WITH WAGES INEFFICIENT TEMPORARY WORK

UNSATISFACTORY UNCOOPERATIVEWORKING CONDITIONS

DISLIKED SUPERVISOR

SECURED BETTER POSITION

BUSINESS FOR SELF

PHYSICAL CONDITION

RETURNING TO SCHOOL

FAMILY CIRCUMSTANCES

LEAVING THE CITY

OTHER

NEW EMPLOYERLOCATIONNATURE OF WORKPAY HOURS

WHEN WAS EMPLOYEE NOTIFIEDHOW WAS EMPLOYEE NOTIFIED

WAS EMPLOYEE OFFERED A TRANSFER YES NOTO WHICH DEPARTMENTWHY WAS TRANSFER REFUSED

EMPLOYEE RATING: SATISFACTORY FOR REHIRENOT SATISFACTORY FOR REHIRE



RULES VIOLATION

ABSENTEEISM OR TARDINESS

INSUBORDINATION

OTHER

D. RETIREMENT

AGE

MEDICAL

EARLY

A-33

PROBATIONARY NOTICE DATES ON OFF

EMPLOYEE TYPE OF PROBATION: POSITION NEW HIREDEPARTMENT VIOLATION OF POLICIES

AND PROCEDURESCLOCK NUMBERUNSATISFACTORYPERFORMANCE

PROBATIONARY CAUSE PREVIOUS DISCIPLINE

DATE NONETIME VERBAL REPRIMANDLOCATION NUMBER: DATES:DETAILS WRITTEN REPRIMAND

NUMBER: DATES:

WHAT IMPROVEMENT IS NECESSARY?

HOW MUCH IMPROVEMENT IS NECESSARY?

ACTION PLAN:

SUPERVISOR REMARKS:

EMPLOYEE REMARKS:

SIGNATURES: EMPLOYEE DATESUPERVISOR DATE

I HAVE READ THIS PROBATIONARYNOTICE AND UNDERSTAND ITS CONSEQUENCES

MANAGEMENT APPROVAL DATE

A-34



EMPLOYEE REPRIMAND VERBAL WRITTEN DATE

NATURE OF REPRIMAND:

EMPLOYEE MISCONDUCT

POSITION ATTITUDE

DEPARTMENT TARDINESSCLOCK NUMBER OTHER

OCCURRENCE OF VIOLATION FREQUENCY OF VIOLATIONDATE 1ST WARNINGTIME 2ND WARNINGLOCATION 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 ANDITS CONSEQUENCES.

MANAGEMENT APPROVAL DATE

A-35



SUPERVISOR’S CHECKLIST FOR EFFECTIVE DISCIPLINECOMPLETE BEFORE TAKING ACTION

INCIDENTEMPLOYEE(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 OFTHE 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

WAS THE RULE/PROCEDURE STATED CLEARLY,

EASY TO UNDERSTAND? YES NO

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 NO

ANY EVIDENCE OF THIS VIOLATION BEING OVERLOOKED? YES NO

DID THE EMPLOYEE HAVE ANY PREVIOUS WARNING? YES NO

WHAT PREVIOUS CORRECTIVE ACTION WAS TAKEN WITH THEEMPLOYEE BEFORE THIS INCIDENT?

WHAT IS THE EMPLOYEE’S PAST RECORD?

CAN YOU BACK UP THIS RECORD WITH FACTS? YES NO

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Page 1 of 2

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 DISCIPLINARYACTION?

YOUR SUPERVISOR UNION REPRESENTATIVE

OTHERS

TAKE ACTION

DID YOU TALK TO THE EMPLOYEE IN PRIVATE? YES NO

HAS MEASURE HAD DESIRED EFFECT? YES NO

WHAT FOLLOW-UP ACTION IS NESCESSARY?

HAVE YOU RECORDED THIS INCIDENT? YES NO

THIS IS A CONFIDENTIAL RECORD. YOU MAY WISH TO MAKE IT A PARTOF THE EMPLOYEE’S PERSONNEL FILE ATTACHED TO THE

DISCIPLINARY WARNING NOTICE COMPLETED FOR THE INCIDENT.

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Page 2 of 2

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 YES NOFIRST AID PROVIDED UNDELAYED YES NO

CAUSE OF ACCIDENT:

PREVENTION RECOMMENDATIONS:

PREVENTION FOLLOW-UP

SUPERVISOR’S SIGNATURE:

DEPARTMENT MANAGER’S COMMENTS:

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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 DOCTOR’S CERTIFICATE IS REQUIRED IF REASON FOR LEAVE OF ABSENCE IS MEDICAL

ACTION TAKEN:

APPROVED REASON:

UNAPPROVED

LEAVE OF ABSENCE APPROVED BYDATE

LEAVE OF ABSENCE UNAPPROVED BYDATE

LEAVE IS WITH PAY LENGTH OF TIME

LEAVE IS WITHOUT PAY LENGTH OF TIME

A-39



Page 1 of 2

LEAVE OF ABSENCE REQUEST

SENIORITY ACCRUES DURING LEAVE LENGTH OF TIME

SENIORITY DOES NOT ACCRUE LENGTH OF TIMEDURING LEAVE

VACATION ACCRUES DURING LEAVE LENGTH OF TIME

VACATION DOES NOT ACCRUE LENGTH OF TIMEDURING LEAVE

COMPANY PORTION OF GROUPINSURANCE PREMIUM IS PAID LENGTH OF TIME

COMPANY PORTION OF GROUPINSURANCE PREMIUMS MUST BEPAID 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 ORDO NOT GIVE NOTICE OF THE NEED FOR AN EXTENSION OF THE LEAVE OFABSENCE, IT WILL BE ASSUMED THAT I VOLUNTARILY TERMINATE MYEMPLOYMENT.

EMPLOYEE SIGNATURE: DATE:

SUPERVISOR SIGNATURE: DATE:

WITNESS: DATE:

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Page 2 of 2

EMPLOYEE HANDBOOK

EXAMPLE

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


Appendix B


THIS PAGE INTENTIONALLY LEFT BLANK

INTRODUCTIONWelcome to this Dealership! We are an Automobile Dealershipcompeting with many others, but we are a unique organisation. We haveestablished a reputation through honesty, competitive sales, and service practices.We believe that good reputation and customer satisfaction are the answers to asuccessful dealership. And we try to practice our philosophy of making thisDealership 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 notprimarily a book of rules, some are included. These rules are understandable andare necessary. Proper conduct and consideration for your fellow employees willhelp us to keep rules at a minimum.

All the rights, prerogatives and functions of management which are not expresslyrestricted or modified by any provisions of these policies are reserved andretained exclusively to the company.

The keynote to this organisation is teamwork and mutual respect, which willserve our customer, company, and ourselves. We welcome you to the team andhope 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.

B-1


Appendix B - Employee Handbook

PROBATION TRIAL PERIODDuring the first 90 days of employment, an employee is consideredprobationary, and is subject to discipline and or discharge at any time during the90 day period, and shall exercise no seniority.

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

TARDINESSTardiness is an abbreviated form of absence which may, from time to time,legitimately occur. However, chronic and habitual tardiness is not permissibledue to the unfair burden placed on the company, the customers, and your fellowemployees. Chronic tardiness is also grounds for dismissal.

CUSTOMER VEHICLESIn the event any employee damages a customer’s vehicle, company vehicle ordemonstrator, the employee is liable to pay the deductible portion of anydamages up to $250.00 per accident. All accidents must be reported to yoursupervisor immediately.

SAFETY AND FIREAll employees are required to maintain safe working conditions and eliminateany or all potential fire hazards. The company is legally obligated to conform toapplicable regulations. Consult your supervisor for details.

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WORKING HOURSSales Department 9.00am to 8.00pm Saturday thru Wednesday

9.00am to 5.00pm Thursday

Service Department 8.00am to 5.00pm Saturday thru WednesdayNo Thursdays

Parts Department 8.00am to 5.00pm Saturday thru WednesdayNo Thursdays

TIME RECORDSIf your particular job requires that you punch a clock, you will be given a timecard and told which clock to use. The clock must be punched in the morningbefore you start to work, punched in and out for lunch and punched out at theend of the work period. NO ONE SHOULD PUNCH TIME CARDS FORSOMEONE ELSE. If your particular job does not require you to punch a timeclock, it will be necessary for your supervisor to keep a record of your timeworked.

To assure that all operations are covered during the working day, please abide bythe lunch periods established by your supervisor.

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

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

THEFTGrounds for immediate dismissal.

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FIGHTINGGrounds for immediate dismissal.

CHILDRENEmployees may not bring their children into the dealership during their workinghours. Children are easily injured and readily become a nuisance to otheremployees, customers or property.

CONDUCTNo negative or obscene language will be used on company premises. Personnelwill conduct themselves in a courteous manner.

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

PRODUCTIVITYWe ask each employee to work with personal and corporate pride. We expecteach employee to put in a full day’s work so that maximum productivity isachieved. Productivity means high quality work in sufficient quantities with aminimum of errors and lost time. Productivity is directly related to profitabilityand job security.

PARKINGRear of lot for all employees.

YOUR SUPERVISORYour supervisor is your primary superior and is responsible for the performanceof 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 owner’s door is open to both of you by appointment. In an emergency youmay request immediate attention. In most cases a meeting can be set up within24 hours.

B-4



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

TELEPHONE CALLSEmployees are not encouraged to make or receive telephone calls during workinghours. However, family personal duties sometimes require such calls. Since thereare no pay telephones on the premises, employees may use company telephonesfor short calls. Excessive incoming or outgoing calls are not permitted. Thecompany telephone will NOT be used for long distance calls without permissionfrom your department head. Should a customer wish to use the telephone, directthe customer to the department head who will place the call for the customer.

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

COMPANY PROPERTYThe primary purpose of all company property is to generate business for thecompany and income for all employees. Therefore, it must not be neglected orabused. Deliberate or negligent damage to company property is grounds fordisciplinary action and/or dismissal.

HOUSEKEEPINGEmployees are required to maintain individual work areas in an uncluttered,clean, neat and tidy condition in compliance with departmental housekeepingpolicies and procedures.

B-5



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

EDUCATION EXPENSESThe dealership is extremely interested in the education of each employee wheresuch education will serve to improve the quality of the employee’s jobperformance. Consequently, the dealership will assist in tuition expense foremployees who successfully complete approved courses. Consult your supervisorfor details.

Sales and Mechanical courses are mandatory as seen fit by your supervisor.Refusal to attend are grounds for dismissal.

SUGGESTIONSSuggestions made by employees which management consider valuable toproductivity and profitability will be carefully considered.

PURCHASE OF CARS FROM THE COMPANYNEW CARS – A price of $200.00 over cost will be extended to all employees onpurchases 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 ourappraised value at the time of purchase.

USED CARS – Because of the difficulty in setting a formula, all used cars salesto employees will be handled on an individual basis by the used car manager.

MOONLIGHTINGMechanics may not perform work on automobiles they do not personally ownunless such work is done through the service desk at normal prices.

B-6



Employees may not engage in any commercial activities which are in directcompetition with this Dealership unless they first terminate their employmentwith the Dealership.

Employees may not work for any company in direct competition with thisDealership. No employee is permitted to sell automobiles in direct competitionwith the Dealership. Nor may any employee solicit the sale of a potential trade-in or inventory purchase for the purpose of either re-selling the car orundermining the dealership’s ability to buy the car at wholesale.

When an individual approaches an employee of the company for the purpose ofselling 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 orengage in discussions of value regarding vehicles.

Any of these activities are grounds for dismissal.

REPAIR WORKA 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 PRIVILEGESAll employees are entitled to purchase those parts normally stocked and sold bythe following price formula: Cost plus 10%.

Mechanics may work on their own cars after regular business hours provided thata manager is present and that such work will in no way hinder the normal shopoperation. Such work MUST be cleared by the shop supervisor. There is a 15%labour discount for employees owning our franchise vehicles and who have themserviced at the dealership.

B-7



PARTS DEPARTMENTThe Parts Manager is solely responsible for the inventory.

ADVANCEMENTThe Dealership recognises the necessity of personal advancement within theorganisation as a strong indication of an employee’s value to the company. Asjobs become available, we try to promote from within whenever possible.

COMPANY AUTOMOBILESAutomobiles are provided to sales personnel for demonstration purposes and insome cases to management personnel. These automobiles must be washedregularly, kept clean inside and the gas tank kept at least half full. The car mustbe properly maintained, serviced and cared for so as not to diminish its value.No accessories will be added or alterations made without permission of theowner.

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 trafficviolations, which must be reported to your supervisor immediately to assureinsurance coverage.

Said demonstrators are to be used only by personnel to whom they are issued andare not to be driven or lent out to customers or members of an employee’s family.

RENTAL CARSRental cars issued to the service department are in use for three (3) very specificreasons:

A. Provide a convenience for our customers.

B. To create additional income for the service department.

C. Generate additional business.

B-8



Our insurance covers these vehicles when driven by a customer whose car is inour shop for service and/or repair only. The customer will sign a completedrental agreement and be charged the minimum rental fee per day. Theseautomobiles will be used for no other purpose and they may be sold anytime bythe sales department.

A daily record will be kept by service management of the rental in our log book.

DEMONSTRATION DRIVESSalespersons will accompany customers on a demonstration drive. UNDER NOCIRCUMSTANCES will a customer be allowed to drive a new or used carwithout being accompanied by a salesperson.

TERMINATION NOTICEAll employees who are resigning must give a minimum two (2) weeks noticewhich may be waived at management’s option. This helps us in finding a suitablereplacement for you and providing you with a good recommendation for futureemployers.

Seniority will be broken and employment terminated for any one of thefollowing reasons:

A. Dismissal for just cause.

B. Resigning (quitting).

C. Absence from work for three consecutive days without reporting the reasonwithin 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.

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

B-9



MILITARY DUTYThe 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 noticemust come from your military unit.

2. Participation in weekend drills and annual training exercises will not affectyour regular time off for paid vacation.

LEAVES OF ABSENCELeaves of absence may be granted for compelling personal reasons. Consult yoursupervisor if you are in need of such leave.

ADDRESSESIt shall be the employees responsibility to keep the company informed of theircurrent addresses and telephone numbers. The company shall rely on thisaddress for communications by mail.

SALARY AND WAGESYour compensation is determined by your supervisor in conjunction with thetotal management team. It is confidential and reflects the company’s regard foryou as an essential member of the staff. Every effort is made to ensure that eachemployee is paid fairly in relation to his or her productivity.

PAYDAYPay week runs Tuesday thru Monday. All employees are paid weekly, eachWednesday, for work completed the previous week. Your cheque is normallygiven to you on your payday before noon in your work area by either yoursupervisor or another member of the management team.

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ACCOUNTING ERRORSAny discrepancies or questions about your pay should be raised immediately andanswered to your satisfaction on the day you are paid. The accounting staffmakes every effort to be accurate but mistakes can occur. Please bring any sucherror to the immediate attention of your supervisor for correction.

MAJOR MEDICAL INSURANCEAfter you have been with us for twelve (12) months of continuous service, youare eligible to be covered by our group insurance plan. This plan is for the solebenefit of you and your eligible dependants, including hospitalisation, surgicalplan, etc. The cost of this plan is shared by both you and your company on afifty-fifty basis of the cost of the coverage you select with your contributiondeducted from your cheque weekly. The cost is much lower than the sameprotection would be if purchased individually. PLEASE REMEMBER, IF ATANY TIME YOUR DEPENDANTS CHANGE, YOU SHOULD NOTIFYYOUR SUPERVISOR IMMEDIATELY TO KEEP YOUR POLICYRECORDS CORRECT.

VACATIONSEvery employee is entitled to a paid vacation of one to three weeks. Vacationsmay be taken at any time of the year but may not be carried over or credited fromone calendar year to the next. Choice of vacation dates must be cleared with thedepartment head who will approve dates. If a conflict exists, preference will begiven 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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HOLIDAYSThe following holidays are observed by this organisation for which you will bepaid;

NEW YEARS DAY

GOOD FRIDAY

CHRISTMAS DAY

SALES DELIVERIESSalespersons will ensure that all new and used cars are checked out six (6) hoursprior to delivery, i.e. car runs properly, is washed, serviced, lights, wipers, etc. areworking. Car has jack, tools, spare wheel and tyre. Key number is put on jacketand on service book. Have all papers prepared. Last minute checking ofdeliveries will NOT be tolerated.

Explain car, service book and warranty to customer, and if there is a trade-ininvolved, check out the trade before the customer leaves. Make sure theequipment is intact, that is, has tools, jack and a spare and is in the samecondition as it was when appraised.

DEALER PLATESPersonnel who are issued dealer plates are solely responsible for them and willcomply 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 MEETINGThere is a managers meeting held in the owner’s office at 10.00am everyWednesday. ALL managers will attend.

Any issues affecting employees resulting from a manager’s meeting will be postedwithin forty-eight (48) hours.

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

FIXED ASSETSDepartment head must get approval from owner for any expenditures of morethan $50.00.

INJURIESAll accidents and/or injuries must be recorded by the department head andbrought to the attention of the owner immediately.

PERSONAL BELONGINGSPersonnel are requested not to leave any personal belongings on companypremises as our insurance policy does not cover same.

CAR KEYSThe 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 theservice department will have the keys removed and returned to the servicedispatcher.

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

USED CAR WARRANTYEverything applicable to customer used car warranty will be brought to theattention 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 paidfor by the dealership unless authorised by the used car manager who isresponsible for used car warranty interpretation.

B-13



DEPOSITS AND PAYMENTSAll monies received from customers as deposits or payments will be handled bythe cashier and a company receipt signed and dated by the receiver will be givento the customer. When giving a receipt for monies on an automobile, the receiptnumber must be noted on the order form.

TELEPHONE PERSONALITYCourtesy and efficiency on the telephone are of prime importance. Please answercalls promptly. Be ready to talk as soon as you pick up the receiver.

Identify yourself and the Dealership. The conversation cannot begin until thecaller knows he has reached the right place.

Speak distinctly and directly into the receiver and always keep writing materialnear the telephone.

In asking a caller to wait, politely explain the reason for the delay and lay thereceiver gently down.

When leaving the office, be sure to tell the designated person where you aregoing and when you will return.

Even though a telephone call may interrupt an important conference or distractyou from concentration at the moment, always treat the call with utmostcourtesy.

DECORATIONSNothing will be hung on any walls without prior approval of the administrativemanager.

B-14



NEW CAR INVENTORYNo new car is to be driven from stock without first being placed indemonstration service except during a sale and only during business hours.Unauthorised use of a new car from stock is serious grounds for dismissal.

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

RELATIONS WITH CUSTOMERSWe have a keen appreciation of our responsibility to our customers. Thecompany 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 yourwork, the promptness with which promises are kept and the neatness of yourselfand the premises, all influence the customer to come back.

Here are some tips to remember.

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

2. Smile.

3. Call customers by their name.

4. Be frank and honest.

5. Be friendly but not familiar.

6. Do not argue or lose your temper.

7. Keep promises.

8. Show your appreciation. Thank a person for their business.

9. Look the part of the professional person you are.

10. Be tactful.

B15



COMMUNITY RELATIONSIt 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.

B-16

