Human Resource Strategies of

By: Triple PPP’s

Ashley Corsi

Jason Goude

Arsel Kumdereli

Alex Shelton

Contents

HUMAN RESOURCES.............................................................................................................................. 2

HISTORY OF ANN TAYLOR LOFT.............................................................................................................. 2

HUMAN RESOURCES IN ANN TAYLOR.....................................................................................................2

APPLICATION PROCESS.......................................................................................................................... 2

Critique.................................................................................................................................................2

SELECTION............................................................................................................................................. 2

CRITIQUE......................................................................................................................................................2

TRAINING.............................................................................................................................................. 2

CRITIQUE......................................................................................................................................................2

MOTIVATION AND WORK ENVIRONMENT..............................................................................................2

CRITIQUE......................................................................................................................................................2

BENEFITS............................................................................................................................................... 2

CRITIQUE......................................................................................................................................................2

CONCLUSION......................................................................................................................................... 2

INTRODUCTION TO HUMAN RESOURCE LAWS.......................................................................................2

EQUAL EMPLOYMENT OPPORTUNITY.................................................................................................................2CIVIL RIGHTS ACT OF 1866 AND 1871..............................................................................................................2

Equal Pay Act of 1963...........................................................................................................................2Title VII of the Civil Rights Act of 1964..................................................................................................2Age Discrimination in Employment Act (ADEA)....................................................................................2Americans with Disabilities Act (ADA)..................................................................................................2Civil Rights Act of 1991.........................................................................................................................2EE0-1 report..........................................................................................................................................2

CRITIQUE......................................................................................................................................................2

CONCLUSION......................................................................................................................................... 2

WORK CITED.......................................................................................................................................... 2

2

Human Resources

Imagine you are an employer at Ann Taylor Loft, and you expect an annual raise

but when the economy fails as it did in 2008, you are left with nothing but your job. As a

Human Resources (HR) manager you must keep your employees motivated, even if your

company is not able to give an annual raise. In other words how can you keep employees

working as hard as they can, even if they are not given raises?

Cheryl Pressley is the co-manager for Ann Taylor Loft here in Greensboro. Last

year Cheryl had to manage the situation of not being able to reward her employees for

their efforts over the year, as she normally would, because the company overall did not

perform optimally.

In order to prevent this problem from reoccurring, the efforts of the store team

have increased quantifiably by means of getting credit card applications, increased dollar-

per-transaction amounts, and more one-on-one customer interaction which helps build

longer more trust worthy relationships for the company. The only way for the company to

give raises is to create more revenue, and this can be done by optimizing the employee’s

efforts to please the customers.

All the challenges faced by Ann Taylor Loft, are the dimensions of the Human

Resource Management (HRM). There are tons of issues that a company deals with on a

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day to day basis. Thus, HRM plays a big role on companies’ future goals. We all know

that in the global world, clients are the most important tool for a successful business.

Human resources is a term to explain how people are

managed by organizations. Human resources have moved

from a traditionally administrative function to a strategic

function, that recognizes the link between talented and

engaged people and organizational success which is

called the Human Resource Management (HRM).

Human resource management's objective is to maximize the return on investment (ROI)

from the organization's human capital and minimize financial risk. In a corporate context

it is the responsibility of human resource managers to conduct these activities in an

effective, legal, fair, and consistent manner.

There are some key functions of the Strategic HRM

Analysis and design of work Recruitment and Selection Training and Development Performance Management Compensation and Benefits Employee Relations Personnel Policies Compliance with laws Support for strategy

Currently most managers see HRM practices (i.e. applications, training, and

interviewing) as a necessary expense, rather than a just a source of value to their

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organizations. These key functions, if executed well, can have a positive impact on the

company’s performance. In fact, in the recent economic crisis, strategic HR planning is

more important because it is more difficult to satisfy employees and keep them motivated

while trying to avoid more expenses.

In an effort to understand how these strategies are applied in a company we

decided to investigate Ann Taylor Loft, a well established American retail company. We

will critique strategies within HR by comparing them to federals laws and regulations as

well as the insight of our group.

History of Ann Taylor Loft

Ann Taylor Loft began in 1994 as a new division of

the nationally known Ann Taylor. Ann Taylor was

established in Connecticut in 1954. Despite common

thought, it is not named after a person. Richard

Liebeskind Jr. borrowed the name from his father’s

store’s most popular shirt dress called: “Ann Taylor.” The name was chosen because Ann

was a popular New England name and Taylor implied that the clothing was tailored and

well made. The same idea is maintained today in all Ann Taylor Loft stores: well-made

clothing that meets “the evolving needs of women who want feminine, stylish, and

versatile fashions…” says Kay Krill, Chief Executive Officer of Ann Taylor. Once Ann

Taylor became nationally acclaimed, a division called Loft emerged with a more casual

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sense of style. Last year Loft accumulated half of the $2.4 billion dollar total revenue of

Ann Taylor. (NYJobSource, 2009)

Human Resources in Ann Taylor

Human Resources within Ann Taylor Loft is primarily handled by Ann Taylor

Corporation, and then by the store managers. Once Corporate gives the divisions

permission to hire new employees, managers are then given the task of interviewing and

choosing future employees.

Application Process

Selecting potential applicants is achieved in two ways: the first is a common

application which can be done in the store or online, and the second is an online

assessment. This assessment is a questionnaire. The questions pertain to personality traits,

comfort levels, ability to perform tasks conducive to work at the Loft. The assessment is

another process within hiring, before the recruiting process that helps weed out people

who are not a match with the Loft employee standard.

Critique

The applications process is structured, which means every applicant follows the

same guideline, which helps Ann Taylor Loft keep their information organized and helps

filter through unqualified applicants efficiently. The online assessment is another part of

the application process, but this is a more in depth look into the potential employees, and

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it allows the company to preview the applicant’s personality, to assess whether they are

appropriate for Ann Taylor Loft. The application process is also a low cost way to gather

basic information about the employees. The online availability of the application is

positive because it is convenient to the applicants, relieves the stress of driving around to

the stores, keeps nervousness to a minimum, allows applicants to update their resumes,

and it is environmentally sound.

Selection

Selecting is performed by individual interviews with a manager. The interview is

unstructured, and the managers are only required to ask a few pertinent questions. Most

of the interview is getting to know the applicant in a way that their resume cannot

convey. The criteria for potential employees are always the same: energetic, stylish,

experienced, time availability, and pay expectations. The majority of applicants for the

Loft are women; therefore the majority of employees are women. For example Cheryl

Pressley, has worked for the Loft for four years, and has only worked with two males.

But if a man was to apply, he would be judged by the same criteria as a woman, and

would have the same chances as a female applicant.

Critique

The interview is unstructured which can cause a biased towards the interviewers

developing a relationship. If the interview was more structured, it would be more job

relevant, which would ensure that the applicant was hired based on their job

qualifications versus their amiableness. The managers are more susceptible to biasness

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through this unstructured method; if they were to follow the same guideline for each

interviewee, the process could be shortened and made more objective. “Although

interviewers may object to being restricted, the results are made more valid and reliable

then with a non directed interview.” (Noe, Hollenbeck, Gerhart, & Wright, 2009)

Training

Once an applicant has successfully gotten through the

interview, their training begins. The first step is a

multi-media computer program designed to work

through multiple situations that may occur on the job

and test the new employee’s ability to assess and

handle the situation in a way that fits the company’s

guidelines. This is followed by a cash-register training program, which essentially does

the same as the multi-media. The new employee is given a number of scenarios within

the cash-warp realm (cash register) that allow them to work through many forms of

payment, coupons, and special codes. Once the employee has completed both programs,

there is on-the-job (OTJ) training; OTJ is where the new employee follows/shadows a

more experienced employee and watches how they handle any situation and learn to

interact with customers/clients.

Critique

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The training focuses on the skills necessary to the job, through diverse methods

which helps keep the new employee enthusiastic. Through technology based training the

company can see the computer based skills of the employee, with cash register training

the strengths with money are assessed, and with OTJ training the company can view how

well the employee performs with customers. Loft does a superior job at having a well-

rounded training process. However, Ann Taylor Loft does not give the Business Conduct

Guidelines (Employee Handbook) to the employees, the manager will show only parts of

it to the new employee, and then both have to sign off to verify that they went over the

handbook. The employees should have a chance to review these Guidelines, so they are

aware of their expectations, and therefore do not tarnish the brand.

Motivation and Work Environment

Once an applicant is hired, there are incentives to keep employees. Loft keeps its’

employees motivated to do well by keeping track of employees success, which may lead

to raises or promotions. This is especially focused on getting credit cards for clients.

Every time an employee obtains a credit application from a client, it is recorded into the

computer system which is linked to Corporate; as well as marked on a weekly chart for

all employees to see. Although this is a great motivator for employees to do well in

pushing credit, it also causes competition between employees, which may not always be

positive.

Critique

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The company does do well to keep the employees motivated to gain credit card

applications. However, this creates negative tension amongst the employees. “Provide all

associates with a healthy, safe, and productive work environment and is committed to

eliminating recognized hazards from the workplace.” This is taken from the Business

Conduct Guidelines; this idea creates a productive environment. Even though tension

may be created between employees as to who obtains the most credit card applications,

the overall effect is productive for the company.

Benefits

Benefits are only offered to managers of the Loft. Managers receive health,

vision, and life insurance. Tuition assistance used to be offered, but was cut because of

budgeting. These are standard with most companies, in order to receive these though, you

must be a manager. In order to be promoted, the individual performance is assessed as

well as the company’s overall performance. Although an individual may be working

above-average, if the company is not successful overall, there is no way a promotion can

be achieved.

Critique

The benefits for the managers are excellent. These benefits help keep the

managers, who are harder to replace versus hourly employees. The managers are also

guaranteed salaries no matter how much they work, and this creates a sense of safety for

them in this economy. All the benefits affect the company’s bottom line (revenue)

positively, because manager motivation is kept high.

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Conclusion

From our experience within the Loft, we have found that these strategies and

policies are acted upon in day-to-day working. Loft’s mission is to “be a leading specialty

retailer, [have the]client be at the center of all that we do, and achieve improving

financial results through building brands, becoming operationally excellent, and creating

a winning culture.” From the winning culture booklet distributed to Loft employees. See

appendix for figure-1. Just this act alone of informing employees of the Loft’s vision is a

way that the Loft has enhanced their human resources strategy.

After researching Ann Taylor Loft we felt it necessary to further define the laws

and regulations that concern the Loft as well as every public company. We will point out

how each law would affect each part of their HRM strategies, and investigate how the

Loft could improve on these.

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Introduction to Human Resource Laws

It is important for the company to understand the laws and regulations affect

HRM. One important question to ask is what are the laws and regulations and how do

they apply? Whose affected by these laws and what should every employer know about

the laws regarding HR? It’s not as tough as one may think. There is already a lot of

knowledge readily available to every employer but they have to take the necessary

actions to access this information; whether it’s taking a HR class, or looking up

information online. In this section we are going to outline a few of these laws and

explain why it is important for public companies such as Ann Taylor Loft to understand

and follow these laws.

Equal Employment Opportunity

Equal Employment Opportunity (EEO) is one the most important parts of a

Human Resource Strategy. The definition of EEO is the condition in which all

individuals have an equal chance for employment, regardless of their race, color, religion,

sex, age, disability, or national origin. (Noe, Hollenbeck, Gerhart, & Wright, 2009)

Civil Rights Act of 1866 and 1871

The Civil Rights Act of 1866 granted all people the same property rights as

Caucasian citizens and the rights to enter into contracts. The Civil Rights Act of 1871

granted all citizens the right to sue in federal court if they felt they had been deprived of a

civil right. Although these acts seem old and outdated it is important to mention within

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HR, because they help establish the idea that all people should have access to the same

opportunities which is a predominant issue when it comes to Human Resource Strategies.

Equal Pay Act of 1963

The EPA of 1963 established the basis: If men and women in an organization are

doing equal work, then the employer has to pay them equally. The act defines equality in

regards to skills, efforts, responsibilities, and working conditions. (Noe, Hollenbeck,

Gerhart, & Wright, 2009) However, this act does allow for differences in pay, if the pay

difference results from seniority, merit, quantity or quality of production or any other

reason than the sex of the employee (ie: training programs) than the differences are legal.

(Noe, Hollenbeck, Gerhart, & Wright, 2009)

Title VII of the Civil Rights Act of 1964

This is the major law that regulates equal employment opportunity in the United

States. Title VII directly resulted from the Civil rights movement of the early 1960s

which was led by Dr. Martin Luther King Jr. Title VII was passed in hopes to ensure that

equal employment would be based on character or ability rather than race. This law is

enforced and regulated by the Equal Employment Opportunity Commission (EEOC).

Title VII, states that employers may not discriminate because of an individual’s race,

color, religion, sex, or national origin. (Noe, Hollenbeck, Gerhart, & Wright, 2009) These

characteristics do not relate to job performance; which is one of key issues that a human

resource strategy is evaluating. This act applies to organizations that employ fifteen or

more workers, who work twenty or more weeks in a year and are involved in interstate

commerce. It also includes state and local governments, employment agencies, and labor

organizations.

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Age Discrimination in Employment Act (ADEA)

In 1967 Congress passed the Age Discrimination in Employment Act which

strictly prohibits the discrimination of workers who are over the age of 40. It outlaws

hiring, firing, setting, compensation rates and other employment decisions based on a

person’s age being over 40. (Noe, Hollenbeck, Gerhart, & Wright, 2009) Age

Discrimination Complaints make up a large number of complaints that are filed with the

EEOC. See appendix for figure-2.

Americans with Disabilities Act (ADA)

In 1990 this law was passed to protect individuals with disabilities from being

discriminated upon in the workplace. It prohibits discrimination in all areas such as job

applications, hiring, firing, promotion, compensation and training. However it is

important for the employer to understand how disabilities are defined. The ADA defines

it as a physical or mental impairment that substantially limits one or more major life

activities, a record of having such an impairment, or being regarded as having such an

impairment. (Noe, Hollenbeck, Gerhart, & Wright, 2009) There are conditions not

covered by the ADA and they are obesity, substance abuse, eye and hair color, and left-

handedness.

Civil Rights Act of 1991

This act passed by congress widened the relief available to victims of

discrimination in the work place. The major change that comes from this law is the right

to compensatory and punitive damages in cases of discrimination under Title VII (race,

color, religion, sex, or national origin).

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EE0-1 report

The EEOC also monitors organization’s hiring

practices. One of the ways they do this is by an

EE0-1 report. The EEO-1 report is an online

questionnaire which requests the number of

employees in each job category and is broken

down by their status as male or female,

Hispanic or non-Hispanic, and members of

various races. These reports are used as

possible ways to identify possible discrimination from in the organization. (Noe,

Hollenbeck, Gerhart, & Wright, 2009)

Critique

First of all an organization needs to have an adequate HR Strategy in place that

addresses all these issues properly according to the laws. Part of this is for the

organization to properly educate and train their employers. Then have the employers

educate their employees about these important laws and issues as well. It is important to

make the information known and available to employees so they know all of their legal

rights under EEO. Organizations could pass out handouts to their employees or put up

posters that let their employees know about these laws. Also the organizations need to

make sure they choose a knowledgeable individual for the HR position. A good HR

manager could develop workshops and classes for the employers to give them the

information they need so they do not violate any of these laws. Also a good HR manager

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could save an organization a lot of money when it comes to lawsuits and complaints that

may be filed with EEOC.

Employees can go directly to the EEOC website to get all the information they

need when it comes to HR if they do not have an adequate HR Strategy in place. The

website is www.eeoc.gov and it is filled with great information. It has all the federal

laws an employer needs to know as well as statistics and graphs that give you an idea of

the importance of abiding by these laws and regulation. See appendix for figure-2. It

also a great source to get current news feeds about events going on in the workplace

pertaining to the EEO subject matter.

Ann Taylor Loft is serious about abiding by the laws, and is a firm believer in the

EEO. Although the majority of employees in the Loft are female, male

applicants/employees would receive the same opportunities as female employees. “Ann

Taylor’s work climate must also be free from discrimination and harassment based on

race, personal characteristic, including: color, religion, creed, citizenship, national origin,

national ancestry, age, sex, sexual preference, marital status, pregnancy, physical,

psychiatric, or emotional disability, veteran status, any other factor unrelated to job

requirements, or job status, and any other category protected by federal and/or applicable

state law and the company will not tolerate any discriminatory behavior…” (HR

Department, 2009) Sexual Harassment will not be tolerated by any employee of the Loft,

and this is made clear in the Business Conduct Guidelines. See appendix for figure-3.

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CONCLUSION

In this report, we looked at a brief overview of Human Resource strategies and

guidelines and how Ann Taylor Loft abides by them. These areas of Human Resource

Management include the Business Conduct Guidelines, the recruiting process, hiring and

firing, and retaining Loft employees. An important facet of Loft’s employee relations

include retaining and motivating talented employees - even in the midst of economic

downturns - while “weeding out” employees who may not perform to the company’s high

standards.

Next we briefly looked at the history of Loft, a subsidiary of Ann Taylor

Corporation, and highlighted the company’s vision for the future. Then we examined and

critiqued each step of the process for recruiting employees– from the application process,

to the criteria involved in selecting applicants, to the training procedures utilized by Loft,

and lastly the benefits offered by Loft and other ways to motivate talented employees.

We also analyzed and critiqued Ann Taylor Loft’s Human Resource policies by

reviewing key HR and employment regulations, including the Americans with

Disabilities Act and Title VII of the Civil Rights Act of 1964, and how they relate to

Loft’s HR management strategies in several issues such as discrimination and sexual

harassment. Based upon all the critiques performed, we have concluded that Loft’s

strategies and policies are fully compliant with all applicable rules and regulations.

As our group progressed through this project, we all learned different elements of

HR strategies and how they are applied to a real company. With prior knowledge of HR

laws, applying them within a company we learned how a company interprets these laws

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into their own HR strategies. Through our critiques of Ann Taylor Loft, we found that

there were more positives than negatives, which proved that the Loft is a well rounded

company that follows HR laws and regulations.

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Work Cited

Department of Labor, Initials. (2009, May). Employment standards administration .

Retrieved from http://www.dol.gov/esa/ofccp/TAguides/consttag.htm

HR Department, . (2009). Ann taylor stores corporation. Retrieved from

http://careers.anntaylor.com/AT_C_workplace.html

HR Department. (2009). Business Conduct Guidelines. New York.

Katz, A. (2007, December). Welcome to the world of hr. Retrieved from

http://astronsolutionsworldofhr.blogspot.com/2007_11_01_archive.html

Lee, E. (2007). California labor and employment law. Retrieved from

http://www.calaborlaw.com/2007/11/16/and-the-winner-for-most-popular-discrimination-

complaint-in-the-us-is/

Noe, R, Hollenbeck, J, Gerhart, B, & Wright, P. (2009). Fundamentals of human

resource management. New York, NY: McGraw-Hill Irwin.

NY Job Source, Initials. (2009, March 6). Ann taylor. Retrieved from

http://nyjobsource.com/anntaylor.html

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