Introduction to Business Chapter 13 Managing Human Resources Essential Question: How important are employees in a small business?

Objectives: 1.2 Business Environment (C): Students will understand the development and structure of business environments. They will demonstrate competency by identifying the dynamic components of business structure and its relationship to the global business environment. 1.2.8 Interrelationships of Business Operations–discuss the interrelationships between different business lines as they relate to finance, tax, operations, human resources, marketing, production, management, and the legal environment.

Chapter Objectives Explain why human resources are important to the success of small business. Identify factors to be considered by a small business owner when assessing human resource needs. Outline types of compensation and typical benefits to employees.

Importance of Human Resources Human resources- the people who work for the business. Employees can make a difference in the success or failure of a business. The impact of one person can be very noticeable in a small business with only a few employees. Human resource need. p. 171 see fig. 13-2 Small-business owners should carefully determine the category of employee needed’ study work requirements in preparation of a new employee, search for people who meet a specific need or skill requirement, and then hire the qualified applicant. Categorizing Human Resources Once an employee is hired .the persons wages must be paid. Permanent employee – long term commitment. Temporary employee – short-term for specified period or as needed Full-time employee – works a full schedule of 32 to 40 hours per week Part-time employee – works under 32 hours a week.

Importance of Human Resources p. 171 - continued Determining Employees Qualifications What are the business needs? See business plan. What are the potential employee skills? Resume/Application/ Interview Locating new employee see fig. 13-1 customer base local area Younger/older people Hiring a New Employee Once an employee is hired .the persons wages must be paid. Permanent employee – long term commitment Temporary employee – short-term for specified period or as needed Full-time employee – works a full schedule of 30 to 40 hours per week Part-time employee – works under 30 hours a week

Compensation and Benefits. Compensation and benefits include a salary or wages, financial incentives, and fringe benefits. Salary and Wages. time wage – The amount of money paid to an employee a specific amount of money for each hour worked. straight salary – A specific amount of money paid for each week or month worked. Financial Incentives. Commission – A system that pays and employee a percentage of sales for which he or she is responsible. Piece Rate – A compensation plan that pays the employee a specific amount for each unit of work produced. Base pay plus incentive – A system that pays an employee a small wage or salary with additional amount determined by performance. Profit sharing – An incentive plan in which employees receive their regular compensation plus a share of the profits earned.

Compensation and Benefits. p. 174 continued Fringe Benefits. Compensation in forms other than direct payment for work. May be required by law Vacations, Retirement accounts, Social Security, Workers Compensation, Life & Disability Insurance

Training and Development p. 177 Sources of training within a small business include the owner or experienced employees. Other sources include trainers who conduct training sessions at the business site; training programs offered by schools colleges; seminars, classes and training materials available through the Small Business Administration; and equipment vendors or other businesses that sell products. New employees are trained Help them learn processes for job. Either in-house, purchased, or vended out Existing employees. New process or equipment Maintain skills. Additional education. Degree programs to enhance leadership and specialty skills.

Assignments Do Now Workshop Discussion Calculate business data p.180 #32 Read example and calculate answer in an Excel spreadsheet, show your work. Give a short explanation as to your answers. Read Ethical Perspectives on p. 175 and answer both questions with a short answer Calculate business data p.176 #32 Read example and calculate answer in an Excel spreadsheet, show your work. Give a short explanation as to your answers. Workshop Discussion Communicate Business Concepts questions 10- 14 p.178. Decision-making Strategies p. 179. Discuss article with your group and write a brief answer to both questions

Homework Define Key Terms Develop your Business Language p. 153. Answer Review your reading questions 1-11 p.152.