Organizational Culture: Defining It, Developing It, Merging It

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1 the update a publication of the San Antonio Human Resource Management Association, Inc. April 2005 SAHRMA SAHRMA Home page URL Organizational Culture: Defining It, Developing It, Merging It How would you define organizational culture; in particular how would you define your organization? A SHRM article defines it as the sum of an organization s behaviors and practices. Another online source states it is the personality of an organization; it is comprised of the assumptions, values, norms, and tangible signs of organization members and their behaviors. Culture can encompass something as obvious as a dress code and or less obvious but more significant such as how much autonomy individual employees are given to manage their duties on a daily basis. HR practitioners play a crucial role in maintaining organizational culture; they are the keeper of the flame. As we implement our selection, training, and evaluation processes we promote and spread the culture. The success or failure of an organization s culture can directly affect HR s ability to attract and retain top talent. Join us for our April 12 th meeting as Mike Crownover, Vice President of Human Resources for Valero Energy Corporation, shares his insight on the importance of organizational culture and specifically how Valero managed the critical task of merging two different cultures. Valero Energy is one of the nation s premier refining and marketing companies based in San Antonio, with approximately 20,000 employees and annual revenues of more than $50 billion. Mike helped lead the successful integration of 18,000 employees when Valero acquired Ultramar Diamond Shamrock in 2001, and helped maintain Valero s top culture through innovative employee programs. Prior to beginning his 7 years with Valero, Mike served a 20-year tenure with Halliburton Energy Services. He received his BBA in Accounting from the University of Texas at Arlington, and has more than 25 years of experience in Human Resources. What Would You Do? Danny Discipline wants to terminate a Hispanic male manager for dishonesty after discovering that he falsified sales records. You review past records and notice that that Danny recently gave an Anglo female manager a final warning for dishonesty when money was found missing from her store. What Would You Do?

2 2005 Officers April 2005, UpDate 2 President Jennifer Rower, PHR Padgett, Stratemann, & Co., LLP (210) (210) fax President-Elect Mary Jean Hernandez, PHR Valero Energy Corp. (210) (210) fax VP Programs Barbara Watts, PHR San Antonio Urban Ministries (210) ext 145 (210) fax VP Research & Development Kelly Satel H-E-B (210) (210) fax VP Membership Bill Spulak, SPHR Argonaut Group, Inc. (210) (210) fax VP Student Chapters Otis Scott ( Scotty ) City Public Service (210) (210) fax VP Public Relations Lenore Kaiser Kaiser Medical Management (210) (210) fax Secretary Stan Pietrusiak Bracewell & Patterson, L.L.P. (210) (210) fax Treasurer Denise Russell Holland & Knight, LLP (210) (210) fax Past President Shanna Garcia Taco Cabana (210) (210) fax M E S S A G E F R O M T H E P R E S I D E N T A Talk with the DOL I recently had the pleasure of meeting Larry Garza, San Antonio District Director for the Department of Labor s Office of Federal Contract Compliance Programs (OFCCP). We met to discuss the 2005 year s Employer s Compliance Forum. This forum is entering its second year and is designed to assist employers by providing answers regarding workplace laws administered by the Department of Labor. The event will be scheduled in June at the University of Texas at San Antonio Downtown Campus. Once we receive the registration information, we will send you an e-blast and include it in the May edition of the UPDATE. Did I mention the cost of this event? It s FREE! Last year, SAHRMA was instrumental in spreading the news about the event. The DOL and UTSA hope to have the same participation from our members again this year. After our discussion regarding the event, I was inclined to seek more information about DOL San Antonio office. Larry shared the following information with me. I hope you will find this information helpful. The San Antonio office is one of three Texas offices representing the OFCCP. They process desk and on-site audits. Despite the rumors, Mr. Garza doesn t hand pick the victims I mean employers to audit. The regional office primarily makes the selection based on EEO-1 reports. Mr. Garza offers his services to employers. He is able to respond to questions regarding employment practices and the audit process. He is available for assistance every 3 rd Friday of the month by appointment only. His services are free. Contact Information for San Antonio District Office Larry Garza 800 Dolorosa Street San Antonio, Texas (210) After meeting Larry I can tell you he is a great resource and I encourage you all to avail yourselves of the services offered by the DOL. In addition to providing cost-effective continuing education to you, the DOL is really making an effort to become a service center for the employers of our community. As for me I think it is a great thing. SAHRMA Resource Center BENEFITS Susan Mustacchio Regional MD Manager, N.A Philips Semiconductors COMPENSATION Cynda Reznicek, PHR, CCP Compensation Manager Zachry Construction Corporation EEO Diana E. Briseno, PHR Sr. Manager Dispute Resolution Valero Energy Corporation EMPLOYEE RELATIONS Mike Moore Director, Human Resources SW Foundation for Biomedical Research (210) HEALTH & SAFETY Lenore Kaiser Health Fair Coordinator Kaiser Medical Management LABOR RELATIONS Lee Wingert, SPHR VP of Human Resources Pabst Brewing Company (210) TRAINING & DEVELOPMENT Leonarda C. Tracy Development Advisor USAA Learning Systems

3 April 2005, UpDate 3 LEGAL UPDATE: A FORK IN THE ROAD: EMPLOYMENT DECISIONS THAT AVOID DISPARATE IMPACT CLAIMS By: Laura O Donnell, Haynes and Boone, LLP A company Vice President terminated a Hispanic male manager for dishonesty after discovering that he falsified sales records but only reprimanded an Anglo female manager for dishonesty when money was found missing from her store. Did the Vice President act inconsistently? Is your company at risk? Two recent Fifth Circuit decisions provide lessons that assist in distinguishing between discriminatory employment decisions and legitimately different decisions based on different circumstances. Nearly Identical Circumstances In Perez v. Texas Department of Criminal Justice, Javier Perez, a Texas Department of Criminal Justice corrections officer, sued TDCP for national original discrimination. 395 F.3d 206 (5 th Cir. 2004). After Perez was arrested and charged with assault for an after-hours stabbing of a former inmate, TDCP initiated an internal investigation in which Perez refused to cooperate. TDCP ultimately determined that Perez had engaged in conduct that jeopardized the integrity of the agency and terminated his employment. Perez alleged disparate treatment pointing to two Anglo employees whom he claimed were treated more favorably under similar circumstances. Shannon Clover was arrested for a drunk driving accident that killed another driver and ultimately pled guilty to misdemeanor driving while intoxicated. TDCP did not conduct an internal investigation, and Clover was placed on probation. Arlen Parma was arrested when he initiated a drunken assault on his mother s boyfriend; he ultimately received deferred adjudication. Again, no internal investigation was initiated and the same manager only reprimanded Parma. (cont. on pg. 9)

4 April 2005, UpDate 4 CAPITOL HILL BYTES This article gives the latest status of some current legislative topics. To read the full text, visit www. shrm.org/government and select Washington & State Insider. To write your representatives on any of these issues, go to shrm.org/government/writecongress.asp. Flexible Spending Account Bipartisan Senate FSA Roll Over Bill Introduced On February 8, 2005, Senator Jim DeMint (R-SC) introduced S. 309, the Flexible Spending Account Enhancement Act of 2005, along with original co-sponsors Senators Ken Salazar (D-CO) and John Ensign (R-NV). S. 309 would allow up to $500 in unused funds in a Flexible Spending Account (FSA) to roll over to the following year or into a Health Savings Account. Although nearly 37 million private sector employees have access to FSAs, less than 7 million take advantage of these tax-advantaged accounts. Low employee participation rates in FSAs are in large part due to the fact that unused funds are forfeited to the employer at the end of the year. Legislative efforts to modify the FSA use-it-or-lose-it rule still face an uphill climb in the 109th Congress because of concerns about the cost, estimated to be roughly $8 billion over 10 years. Since S. 309 would result in a significant reduction in revenue to the federal government at a time when Congress is faced with growing federal deficits, the outlook for action is unclear. Genetics Genetics Legislation Clears the U.S. Senate Unanimously On February 17, 2005, the full Senate approved S. 306, the Genetic Information Nondiscrimination Act of 2005, by a vote of The Senate Health, Education, Labor and Pension (HELP) Committee approved the legislation by voice vote on February 9, 2005, clearing the way for full Senate consideration. S. 306, which is identical to legislation passed by the Senate in the 108 th Congress, would bar employers from using an employee s genetic information when making employment-related decisions. The legislation would also apply to healthcare coverage, both insured and self insured plans, prohibiting them from using genetic information to deny coverage or to determine rates or premiums. Some of the key provisions important to HR professionals include the following: (1) Health plan access prohibits both self-insured and fully-insured health care plans from denying coverage or adjusting contribution rates based on an individual or family member s genetic information; (2) Plan administrators could be personally liable for coverage decisions and assessed penalties of $100 per day; (3) Genetic tests prevent plans from requiring participants to take genetic tests for coverage or from maintaining enrollment restrictions based on the need for services; (4) Employment process prohibits an employer from discriminating against an individual in all terms, privileges or conditions of employment; (5) Damages allow for compensatory and punitive damages under the Civil Rights Act of 1964; (6) Genetic information forbids employers from requesting, requiring or purchasing genetic information of individuals, except: (i) where the employer inadvertently requests or requires the information; (ii) for genetic services offered by the employer (wellness programs); (iii) for complying with the Family and Medical Leave Act; (iv) where the employer purchases documents that are commercially available; (v) Genetic Monitoring of Toxic Substances in the Workforce. HealthCare Medical liability reform bills introduced Efforts are underway in the 109 th Congress to address the nation s medical liability system. On February 10, 2005, the House Energy and Commerce Committee s Subcommittee on health held a hearing on current issues related to medical liability reform. Representative Chris Cox (R-CA) recently introduced H.R. 534, the Help Efficient, Accessible, Low-cost, Timely Healthcare (HEALTH) Act of Similar legislation, S. 354, was introduced in the Senate by Senator John Ensign (R-NV). Key issues of importance to HR professionals are: Caps on Damages The bills would cap both punitive and noneconomic damages in medical liability cases. Non-economic damages would be restricted to the greater of $250,000 or twice the amount of economic damages awarded, regardless of the number of parties, claims, or actions. Punitive damages would be awarded only if there is clear and convincing evidence that the defendant acted maliciously or deliberately failed to avoid unnecessary injury and knew that the claimant would suffer an injury. Attorney Contingency Fees The legislation allows judges in medical malpractice cases to cap the amount of contingency fees awarded to a plaintiff s attorney. Statute of Limitations Medical liability reform legislation would limit the amount of time that an individual may file a health care lawsuit to the lesser of 3 years or one year after the claimant discovers or should have discovered the injury. Preemption of State Law The legislation would preempt state law if state law provides for greater damages or contingent fees or a longer period of time to bring a lawsuit.

5 April 2005, UpDate Congratulations! March Door Prize Winners Scott Toothaker of Checks in the Mail & Billie Rivers of Christus Home Care (2) G.C. to the 3rd Annual Employment Law Update donated by Haynes Boone and Security Service Federal Credit Union John J. Hughes, CS of Armstrong Moving & Storage (2) Spurs Tickets to the Denver Nuggets game donated by Lenore Kaiser of Kaiser Medical Management Linda Schimmel, CPC of Bullock Personnel (2) Fiesta Texas Tickets courtesy of Copier Supply Company and Alamo Physicians Services, Inc. Cynthia Pena, PHR of Alliance Data Systems Autographed book by Stephen Covey called "The 8th Habit" donated by Ed Bierschenk of Full Potential Leadership If anyone is interested in donating a door prize for any SAHRMA luncheon/dinner please contact Maureen Niestroy at Alamo Physicians Services, ext. 236 or What is Employment Branding? Why should you Brand? SBRC / SAHRMA SERIES LECTURE Thursday, April 7 th 12PM 1PM Employment Branding Anne Lynnette Gallas, Regional Manager with NAS Recruitment Communications, will be lecturing on: The Goals for Employment Branding. What is included in a Brand Image? The process of crafting a successful Employment Brand. How Retention plays a key role in Employment Branding. The April SBRC Series Lecture will be held at Greater Chamber of Commerce, 1100 NW Loop 410, Suite 109. To RSVP, please Anne at or contact her at Knowledge Network - April 2005 Greater S.A. Chamber See Website Meetings and sessions. Cost: Varies ESM (Employee Service Management) Call Wednesday, April 20 E-Learning Luncheon and Learn 11:30-1p.m. Northwest Vista College See Website for upcoming HR classes CHECK THIS OUT! Sahrma s website now has a calendar of events. Visit for year s listings. NOTE: Organizations wishing to have their activities listed must make their request in writing to prior to the 2nd Friday of every month. Only those activities which are clearly to the benefit of SAHRMA members will be published. MEMBER TO REMEMBER Lee Wingert, SPHR 5 Lee Wingert, the Vice President of Human Resources for Pabst Brewing Company, was selected as the San Antonio Human Resource Management Association s (SAHRMA) 2004 Member to Remember. An award was presented to him at the March 8 th SAHRMA lunch meeting. Lee has served in many senior HR positions in a variety of industries. Lee is a graduate of the St. Mary s University School of Business, and is certified as a Senior Professional in Human Resources (SPHR). He served in the United States Navy for over five years, is a past president of the San Antonio Human Resource Management Association, is past Chair for the South Texas Chapter of the Texas Association of Business, and past District 5 Director for SHRM. Lee currently serves on the SHRM Texas State Council as the Assistant State Director for Committees, and he also serves on the employee relations committee for the South Texas Blood & Tissue Center. Congratulations, Lee!

6 April 2005, UpDate SUCCESS REPORT: THE 8 TH HABIT WORKSHOP Mr. Bierschenk was animated and informative as he further explored The Four Roles of Leadership. Of particular interest was the discussion about emotional bank accounts of our employees and how a manager s deposits and withdrawals into it determine the speed at which employees develop trust and to what level. MARCH NEW MEMBER MIXER March New Member Mixer had a great new twist which allowed the Officers to get acquainted with the new members and for the new members to ask one on one questions. 6 We got a great bonus also! Because some of the slides for the presentation had just been obtained from Mr. Covey, there hadn t been time to make copies for handouts. So.Mr. Marshall, the Covey representative, volunteered to send copies of the book to all workshop attendees. Thanks to Mr. Bierschenk and Mr. Marshall for a great afternoon. Good job of introducing new concepts and providing a picture/illustration to represent the concept. Workshop Attendee MARCH NEW MEMBERS Robert Barron, Cox Manufacturing Co Inc. Brandon Caldwell, McCoy Corporation Doris Driskill, Infonxx Beverly Echols, The Scooter Store Evelyn Flynn Wanda Haby, San Antonio City Employees Federal Credit Union Twyla Harrington, HNTB Corporation Anthony Juarbe, Ceridian Sylvia Medel, Zachry Construction Corporation Gloria Morales, USAA Nicole Sasso, Clarke American Robin Schultz, Oakwood Corporate Housing Armando Sosa, DPT Laboratories Christy Wisely, The Scooter Store MEMBER ON THE MOVE Cherie Wright, SPHR Human Resources Director HCA Patient Account Services 6000 Northwest Parkway, Suite 124 San Antonio, Texas, Phone: (210) , Fax: (210) If you are a Member On The Move and would like us to inform others of your new directory information, please

7 April 2005, UpDate Staff Update Editor...Lenore Kaiser Capitol Hill Bytes... Kelly Satel Certification/HRCI... Rhonda Michel Door Prize Winners... Maureen Niestroy Knowledge Network...Aaron Zamora Member Spotlight...Lenore Kaiser Photos... Heather Staples Speaker Article... Denise Russell What Would You Do?...Laura O'Donnell IRENE FLORIDA HRCI SCHOLARSHIPS AVAILABLE MEMBER SPOTLIGHT Sandra Johnson On behalf of the SAHRMA Officers and Members, we want to recognize Sandra Johnson as April s Member Spotlight. Even though she is not strictly HR, she is a very big volunteer in SAHRMA. She has been a Membership Committee member for over a year and is always willing to help out at the meetings and any other area when needed. Sandra is originally from upstate New York and moved to San Antonio in She spent the next 14 years in the financial arena of a fortune 100 company. After moving to San Antonio, she continued in the financial field by working with individuals and businesses in insurance planning. As co-owner of Hairston, Johnson and Associates, PLLC, an insurance agency, Sandy also is responsible for the human resource responsibilities at her own company. With regard to her profession, Sandy says, I ve always enjoyed helping people, and in my ever-evolving industry especially in today s environment the challenge is always present and very rewarding. If you know someone who deserves the spotlight, please us your recommendation(s) to 7 The PHR/SPHR scholarship committee is now accepting applications for the Irene Florida HRCI Scholarship Program. This scholarship program was developed and implemented in the Fall of 1998 as a means of providing eligible SAHRMA members the opportunity to take a PHR/SPHR review course and/or sit for the examination. This Fall, two scholarships will be awarded. In order to be eligible, primary requirements include being a SAHRMA member during the last 12 consecutive months and meeting test eligibility requirements per guidelines and standards established by HRCI. Additionally, members seeking recertification are also eligible for scholarships. Each Scholarship is valued at $ Scholarships may be used toward any PHR/SPHR review course that is offered for the official HRCI examination and/or for the examination. The application form is located on our website at www. sahrma.org in the Certification Classes section. A resume must be submitted before your application will be considered. your resumes and applications to or fax to (210) Attn: Kelly Satel. Applications will be accepted through August 15, Attention Employers of Employees Alternative Dispute Resolution Workshop Sponsored by the EEOC May 11 th For information please call: Kathy Perez, ADR Coordinator

8 April 2005, UpDate 8 UTSA TAKES TOP HONORS AT 2005 STATE HR GAMES By Yvonne Herrera Steele The Texas State HR Games and Student Leadership Conference hosted by the UTSA SHRM Student Chapter was held on March 4-5th. The event was sponsored by the SHRM Texas State Council and directed by Dr. Barbara J. Lyons, SPHR. A committee comprised of SAHRMA members, Alumni and students from UTSA, St. Mary s and Our Lady of the Lake University (OLLU) provided planning that resulted in a fabulous event. Otis Scotty Scott, Jr. facilitated the meetings for Co-Chairs DeeAnn Mc- Farlin and Joseph Rapanotti. Six teams competed from four schools including UTSA, OLLU, St. Mary s and The University at North Texas (UNT) in a Jeopardy style competition. Going into the Semi-Finals, two UTSA teams competed with two UNT teams. The final round pitted the two UTSA teams against each other and secured their first and second place wins. The St. Mary s team picked up the coveted Collegiality Award for the second year in a row. Volunteers from SAHRMA, Dallas HRMA, Texas State Council, UTSA, St. Mary s and OLLU served as officiates for the games in addition to serving as hosts and providing decorations, food, prizes, goodie bags and workshops. Interesting topics were provided in workshops presented by Diane Gottsend, Brenda Wingert, Stafford Bloom, Jim Valdez and Dave Ramos. UTSA will go on to represent Texas at the 2005 Southwest Central Regional Games in Utah on April 15-16, 2005, at Weber State University, Davis Campus in Layton, Utah. Register On-Line! Don t forget you may register for the montly meetings on the website! You can pay your meeting fee in advance using Pay Pal! After registration, just click the Pay Pal button for secure on-line payment. You don t even need to set up a Pay Pal account to use this easy and convenient program UTSA HR Games State Champions (L-R): 1st Place Team: Darcene Bower (Alternate), Brenda Briones, Amanda Vela (Captain), Sarah Gonzalez. 2nd Place Team: Lorena Segovia,Danae Bennett(Captain), Andrea Gonzalez, Gloria Callaway (Alternate)

9 April 2005, UpDate 9 LEGAL UPDATE (cont. from pg. 3) The trial court instructed the jury that, to find discrimination, the Anglo employees misconduct must have been of comparable seriousness to Perez misconduct. The jury found in favor of Perez. On appeal, the Fifth Circuit reversed, concluding that the trial court s comparable seriousness jury instruction applied the wrong legal standard. Rather, the correct inquiry is whether the other employees circumstances were nearly identical to Perez circumstances. In explaining the difference, the Fifth Circuit observed that, although the offenses of the three employees might be comparably serious, there were facts that could distinguish Perez situation and justify the employer s more serious response. For example, only Perez refused to explain his conduct and only Perez s conduct, assaulting an ex-inmate, could suggest illegal conduct within the prison. In Dodge v. Hertz Corporation, an unpublished opinion, the Fifth Circuit addressed facts similar to the earlier hypothetical U.S. App. LEXIS 2380 (5 th Cir. Feb. 11, 2005). Hertz terminated Jack Dodge, a Hispanic male manager, for dishonesty after it discovered that he had altered numerous rental contracts to increase his incentivebased compensation. He sued, alleging disparate treatment based on sex and national origin, and compared himself to April Frazee, an Anglo female manager, who was reprimanded for dishonesty by the same manager after money from her branch went missing. The Fifth Circuit upheld the trial court s summary judgment, concluding that Dodge and Frazee were not terminated under nearly identical circumstances. In response to Dodge s argument that both were accused of dishonesty, the court observed that the mere fact that two situations can be classified in the same broad category is a far cry from being nearly identical. The Fifth Circuit s reaffirmation of the nearly identical standard recognizes that there are often circumstantial distinctions that justify different employment action based on different offenses that might appear to be of comparable seriousness. Although these decisions support the employer s need for flexibility in responding to different employment situations, in taking disciplinary employment actions, the employer should still be guided by consistency. Before taking disciplinary action, an employer should ascertain whether similarly situated employees have engaged in similar action and review the response to those comparable situations. If a manager wants to take different action, the prudent employer will analyze the circumstances in both situations and evaluate whether differences exist that, from an objective business perspective, support different treatment. This type of consistency and business-based analysis of employment decisions will help your company minimize disparate impact claims. Laura O Donnell is a Labor and Employment attorney with Haynes and Boone, where she manages the firm s San Antonio and Austin employment work. She is well known to SAHRMA through her monthly What Would You Do? presentations. Practical Lessons

10 San Antonio Human Resource Management Association P.O. Box San Antonio, TX AFFILIATE OF S O C I E T Y F O R H U M A N R E S O U R C E M A NAG E M E N T Calendar of Events APRIL 7th 12th SBRC/SAHRMA Series: Employment Branding Speaker: Anne Lynnette Gallas SAHRMA Monthly Meeting (Dinner) Organizational Culture: Defining It, Developing It, Merging It Speaker: Mike Crownover, VP of Human Resources for Valero Energy Corporation Reminder to RSVP on Time! SAHRMA would like to offer this friendly reminder that the deadline for timely RSVP s for the general meeting is noon on the Friday before the meeting. Untimely RSVP s can cause problems for everyone, including shortages of food, inadequate number of wait staff, last minute additions of tables and chairs, and seating shortages. In order to avoid these problems, and the additional fees charged by the facility, we ask you to please send in your RSVP by noon on the Friday before each meeting. April 12th Dinner Meeting Embassy Suites Hotel NW 7750 Briaridge (IH10/410 area) Networking Dinner 5:30 p.m. Meal/Program 6:00 p.m. End 7:30 p.m. Cost On-Time Late* Walk-In (by noon Fri.) Members $20 $22 $30 Guests $22 $24 $32 Students $10 $20 $20 RSVP by Noon Friday, April 8th or *Late reservations are not accepted after 10 a.m. on Monday prior to meeting. Walk-in cost will apply.

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