10/5/20151 Human Resource Basics

10/5/20152 Workforce All people 16 years & older who are employed or who are looking for a job All people 16 years & older who are employed or who are looking for a job More than 150 million people have full- time or part-time jobs in the United States workforce More than 150 million people have full- time or part-time jobs in the United States workforce Most jobs today require at least a high school education Most jobs today require at least a high school education

10/5/20153 Types of jobs Service-producing industries- business that perform services that satisfy the needs of other businesses & consumers Service-producing industries- business that perform services that satisfy the needs of other businesses & consumers ex. Health care facilities, insurance companies, & retail storesex. Health care facilities, insurance companies, & retail stores Goods-producing industries- business that produce or manufacture products used by other businesses or purchased by final consumers Goods-producing industries- business that produce or manufacture products used by other businesses or purchased by final consumers ex. Construction, manufacturing, mining, & agricultureex. Construction, manufacturing, mining, & agriculture U.S. economy has moved toward service businesses. U.S. economy has moved toward service businesses. The Bureau of Labor Statistics (BLS) estimates that nearly all job growth over the next 10 years will occur in services The Bureau of Labor Statistics (BLS) estimates that nearly all job growth over the next 10 years will occur in services

10/5/20154 Types of workers Blue-collar – job involves a great deal of manual work, including the operation of machinery & equipment or other production activities Blue-collar – job involves a great deal of manual work, including the operation of machinery & equipment or other production activities White collar- work is more mental than physical and involves the handling & processing of information White collar- work is more mental than physical and involves the handling & processing of information Offices, stores, etc.Offices, stores, etc.

10/5/20155 Industry Categories Service-Producing Service-Producing InformationInformation Finance activitiesFinance activities Professional & business servicesProfessional & business services Education & health servicesEducation & health services Leisure & hospitalityLeisure & hospitality GovernmentGovernment Goods-Producing Goods-Producing Agriculture, mining, & construction Manufacturing Trade Transportation & utilities

10/5/20156 Changing job requirements Changes may require employees to develop new skills & get different training. Changes may require employees to develop new skills & get different training. Consumer preferences, economic conditions, new technology, & business competition are strong influences on the workplace. Consumer preferences, economic conditions, new technology, & business competition are strong influences on the workplace. Consumer preferences – preferences by consumers have an important effect on available jobs. Consumer preferences – preferences by consumers have an important effect on available jobs. Jobs are affected by consumer demand for a product or service. Jobs are affected by consumer demand for a product or service. Sometimes new products entering the market make those already available obsolete which may eliminate the jobs for people making those products Sometimes new products entering the market make those already available obsolete which may eliminate the jobs for people making those products New jobs would be created by the demand for the new products. New jobs would be created by the demand for the new products.

10/5/20157 Business cycles Stages of the business cycle affect job opportunities Stages of the business cycle affect job opportunities When businesses expand & consumers buy more goods & services, new jobs are created and vice versa When businesses expand & consumers buy more goods & services, new jobs are created and vice versa High prices cause consumers to decrease their buying High prices cause consumers to decrease their buying When interest rates increase, both businesses & consumers find it difficult to borrow money. As a result, demand decreases which reduces the demand for workers When interest rates increase, both businesses & consumers find it difficult to borrow money. As a result, demand decreases which reduces the demand for workers

New technologies Improves efficiency so that businesses may stay competitive Improves efficiency so that businesses may stay competitive Sophisticated computer & communications systems have reduced the need for office employees Sophisticated computer & communications systems have reduced the need for office employees New technology continues to change the types of jobs in production & manufacturing New technology continues to change the types of jobs in production & manufacturing 10/5/20158

Business competition Cost of running a business affects jobs & workers Cost of running a business affects jobs & workers When costs begin to increase, the business must look for ways to stay profitable When costs begin to increase, the business must look for ways to stay profitable Installing new equipment and streamlining processes make workers more productiveInstalling new equipment and streamlining processes make workers more productive 10/5/20159

Downsizing Planned reduction in the number of employees needed in a firm to reduce costs & make the business more efficient Planned reduction in the number of employees needed in a firm to reduce costs & make the business more efficient Outsourcing Outsourcing Removes work from one company & sends it to another company that can complete it at a lower costRemoves work from one company & sends it to another company that can complete it at a lower cost 10/5/201510

10/5/ Human resources overview Companies that have difficulty finding qualified employees, have a poor work environment, & suffer from quality issues, waste, & employee errors will have difficulty remaining competitive or meeting consumer needs Companies that have difficulty finding qualified employees, have a poor work environment, & suffer from quality issues, waste, & employee errors will have difficulty remaining competitive or meeting consumer needs Managing Human Resources is one of the most important responsibilities of a business Managing Human Resources is one of the most important responsibilities of a business

HR goals 1. Identify the personnel needs of the company 2. Maintain an adequate supply of people to fill those needs 3. Match abilities & interests with specific jobs 4. Provide training & development to prepare people for their jobs & to improve their capabilities as job requirements change 5. Develop plans to compensate personnel for their work 6. Protect the health & well-being of employees 7. Maintain a satisfying work environment 10/5/201512

HR Activities 1. Planning & staffing 2. Performance management 3. Compensation & benefits 4. Employee relations 10/5/201513

Planning & staffing Identifying & filling all of the jobs in the company with qualified people Identifying & filling all of the jobs in the company with qualified people Activities Activities Job analysisJob analysis Recruitment & selectionRecruitment & selection Job placementJob placement 10/5/201514

Performance management Evaluating the work of the employees & improving performance through training & development Evaluating the work of the employees & improving performance through training & development Other activities: managing promotions, transfers, & terminations Other activities: managing promotions, transfers, & terminations 10/5/201515

Compensation & benefits Responsible for planning & managing payroll, personnel records, & benefits programs Responsible for planning & managing payroll, personnel records, & benefits programs Employee relations Employee relations Responsible for maintaining a safe, healthy, & productive work environment for all employeesResponsible for maintaining a safe, healthy, & productive work environment for all employees Other activities: labor relations employment law & policy enforcement, & organizational developmentOther activities: labor relations employment law & policy enforcement, & organizational development 10/5/201516

10/5/ HR planning & staffing Planning & job analysis Planning & job analysis Classifying employees (permanent or temporary)Classifying employees (permanent or temporary) Permanent employees are more productive because they feel like a part of the businessPermanent employees are more productive because they feel like a part of the business Full-time employees work more than 30 hours a weekFull-time employees work more than 30 hours a week

Determining job requirements Done before the start of the hiring process Done before the start of the hiring process Specific information about each job is needed in order to hire people w/the right skills Specific information about each job is needed in order to hire people w/the right skills Job analysis – specific study of a job to identify in detail the job duties & skill requirements Job analysis – specific study of a job to identify in detail the job duties & skill requirements 10/5/201518

Recruitment & hiring Doing a careful search of prospective applicants will ensure the employer doesn’t waste time & money Doing a careful search of prospective applicants will ensure the employer doesn’t waste time & money Candidates must have the skills required for the job and an interest in working for the business. Candidates must have the skills required for the job and an interest in working for the business. 10/5/201519

Application process Applications are used to remove people who are clearly not qualified for the job & to identify those who appear to be especially qualified Applications are used to remove people who are clearly not qualified for the job & to identify those who appear to be especially qualified References should be contacted References should be contacted Applicant may be asked to complete special tests related to needed job knowledge & skills Applicant may be asked to complete special tests related to needed job knowledge & skills 10/5/201520

New employee orientation Complete paperwork needed to receive pay & benefits Complete paperwork needed to receive pay & benefits Several days of training Several days of training Employee may be paired with a mentor Employee may be paired with a mentor Employee may be on a probationary period Employee may be on a probationary period 10/5/201521

10/5/ Compensation & benefits Compensation – amount of money paid to an employee for work performed Compensation – amount of money paid to an employee for work performed Salary & wages – direct payment of moneySalary & wages – direct payment of money Benefits – insurance, vacations, retirement plans, etc.Benefits – insurance, vacations, retirement plans, etc.

10/5/ Compensation methods Wage – pay per hour Wage – pay per hour Straight salary – specific amount of money for each week Straight salary – specific amount of money for each week Incentive systems – connect amount of pay to quality or quantity of employee’s performance Incentive systems – connect amount of pay to quality or quantity of employee’s performance

Types of compensation methods Commission – employee is paid a percentage of sales for which they are responsible Commission – employee is paid a percentage of sales for which they are responsible Piece rate – money received for each unit of work produced. Often used in factories Piece rate – money received for each unit of work produced. Often used in factories Base plus incentive – examples include profit sharing Base plus incentive – examples include profit sharing Encourages commitment, teamwork, & effective customer service so that profits will be highEncourages commitment, teamwork, & effective customer service so that profits will be high 10/5/201524

10/5/ Employee benefits Can be an expensive addition to the cost of compensation Can be an expensive addition to the cost of compensation An additional 20-40% of an employee’s wages are spent on benefitsAn additional 20-40% of an employee’s wages are spent on benefits Cafeteria plan- allocates a certain amount of money to each employee that can be spent on benefits Cafeteria plan- allocates a certain amount of money to each employee that can be spent on benefits The employee selects the preferred benefitsThe employee selects the preferred benefits If the costs are higher, the employee pays the differenceIf the costs are higher, the employee pays the difference

10/5/ Employee Evaluation HR dept. is in charge of developing the evaluation procedures & forms. HR dept. is in charge of developing the evaluation procedures & forms. HR maintains the results of the employee evaluations in the employee’s personnel file HR maintains the results of the employee evaluations in the employee’s personnel file

The evaluation process Managers are given evaluation forms to complete Managers are given evaluation forms to complete Evaluation decisions are based on observations of the employee’s performance & evaluation of the quality of the work produced Evaluation decisions are based on observations of the employee’s performance & evaluation of the quality of the work produced Some companies ask coworkers to provide feedback that is considered in the evaluation Some companies ask coworkers to provide feedback that is considered in the evaluation 10/5/201527

The evaluation conference Scheduled after the manager completes the evaluation Scheduled after the manager completes the evaluation Review & discus results of the evaluation Review & discus results of the evaluation Plan for any needed performance improvement Plan for any needed performance improvement Conference should be meaningful & positive Conference should be meaningful & positive 10/5/201528

Promotions, transfers, & terminations Promotion- advancement of an employee to a position with greater responsibility Promotion- advancement of an employee to a position with greater responsibility Companies want to place good employees in positions where they can provide the most benefit to the company Companies want to place good employees in positions where they can provide the most benefit to the company When possible, companies should fill open positions with current employees who are familiar w/company When possible, companies should fill open positions with current employees who are familiar w/company 10/5/201529

Transfers Assignment of an employee to another job in the company with a similar level of responsibility Assignment of an employee to another job in the company with a similar level of responsibility Job may provide a new challenge for the employee or may be a better match with the person’s skills. Job may provide a new challenge for the employee or may be a better match with the person’s skills. 10/5/201530

Termination Ends the employment relationship between a company and employee. Ends the employment relationship between a company and employee. May be a discharge due to inappropriate work behavior May be a discharge due to inappropriate work behavior Layoffs are a temporary or permanent reduction in staff due to changing business conditions Layoffs are a temporary or permanent reduction in staff due to changing business conditions Terminations must meet legal requirements Terminations must meet legal requirements 10/5/201531

10/5/ Developing an effective culture Businesses have to respond to all of the changes and maintain a positive organizational culture Businesses have to respond to all of the changes and maintain a positive organizational culture Organizational culture- environment in which people work, made up of the atmosphere, behaviors, beliefs, & relationships. Organizational culture- environment in which people work, made up of the atmosphere, behaviors, beliefs, & relationships. Shows people how they will be treated & how they are expected to treat others.Shows people how they will be treated & how they are expected to treat others.

Work environment Physical conditions & psychological atmosphere in which employees work Physical conditions & psychological atmosphere in which employees work Physical conditionsPhysical conditions Work area, offices, break rooms, storage areas, & all other spaces where employees spend time while at work Work area, offices, break rooms, storage areas, & all other spaces where employees spend time while at work Must be safe & healthy Must be safe & healthy Psychological conditionsPsychological conditions Honest, fair, & ethical treatment of each employee Honest, fair, & ethical treatment of each employee 10/5/201533

Work-life relationships Personal time – a few hours each month that can be scheduled for non-job activities Personal time – a few hours each month that can be scheduled for non-job activities Family leave – leave of absence for birth or adoption of a child, to care for a sick family member, or other personal emergencies Family leave – leave of absence for birth or adoption of a child, to care for a sick family member, or other personal emergencies Flextime – choice in how their work days & hours are arranged Flextime – choice in how their work days & hours are arranged Job sharing – offers one job to two people Job sharing – offers one job to two people 10/5/201534

10/5/ Employer-employee relations Managers & employees working together can find ways to accomplish the goals of both the organization & the individuals that work for it. Managers & employees working together can find ways to accomplish the goals of both the organization & the individuals that work for it. Managers who involve employees in decision-making find that better decisions are made Managers who involve employees in decision-making find that better decisions are made

Labor unions Organized group of employees who negotiate with employers about wages & working conditions Organized group of employees who negotiate with employers about wages & working conditions Unions & management resolve issues through collective bargaining (formal negotiation between members of both groups) Unions & management resolve issues through collective bargaining (formal negotiation between members of both groups) 10/5/201536

10/5/ Workforce diversity Comprehensive inclusion of people with differences in personal characteristics & attributes. Comprehensive inclusion of people with differences in personal characteristics & attributes. Organizational benefits Organizational benefits 1.Broader base of knowledge/understanding when making decisions 2.Customers have a more positive image of company 3.Company will be better at serving diverse markets 4.Global business strategies will improve

Individual benefits Each employee will have the opportunity to develop to their full ability Each employee will have the opportunity to develop to their full ability Glass ceiling – artificial limit placed on minority groups moving into positions of authority & decision-making Glass ceiling – artificial limit placed on minority groups moving into positions of authority & decision-making Feel respected & supported despite their differences Feel respected & supported despite their differences 10/5/201538

Societal benefits Prejudice & discrimination will be reduced as a societal problem Prejudice & discrimination will be reduced as a societal problem People learn to recognize & value diversity People learn to recognize & value diversity Country has a more talented, experienced, economically successful workforce Country has a more talented, experienced, economically successful workforce 10/5/201539

10/5/ Developing a diverse organization 1. Develop a written commitment to diversity 2. Have the full support of top executives 3. Review evidence of diversity in the company 4. Update policies & procedures 5. Provide continuing diversity education 6. Recognize & celebrate diversity