© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE Human Resources Basics Managing Human Resources Organizational Culture and Workforce Diversity 8 C H A P T E R Human Resources, Culture, and Diversity

© 2012 Cengage Learning. All Rights Reserved. SLIDE 2 8-1Human Resources Basics Goal 1Describe the nature of today’s workforce. Goal 2Identify important goals and activities of human resources.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 3 KEY TERMS ●workforce ●downsizing ●outsourcing

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 4 THE U.S. WORKFORCE ●All people 16 years and older who are employed or looking for a job ●More that 150 million people have full- or part-time jobs

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 5 THE CHANGING WORKFORCE ●Education and training ●High school education ●Special training ●Basic skills and a willingness to work hard ●Compensation ●High-paying jobs ●Low-paying jobs ●Type of Work ●Working with machines and technology ●Working mainly with people and information

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 6 TYPES OF JOBS ●Classified by industry ●Service-providing industries ●Goods-producing industries ●Classified by occupation ●White-collar jobs ●Blue-collar jobs

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 7 SERVICE-PROVIDING INDUSTRIES ●Trade, transportation, and utilities ●Information ●Financial activities ●Professional and business services ●Educational and health services ●Leisure and hospitality ●Other services

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 8 GOODS-PRODUCING INDUSTRIES ●Natural resources and mining ●Construction ●Manufacturing

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 9 OCCUPATIONAL CATEGORIES ●Professional ●Service ●Construction and extraction ●Management, business, and financial ●Installation, maintenance, and repair ●Office and administrative support ●Sales ●Transportation and material moving ●Farming, fishing, and forestry ●Production

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 10 EMPLOYMENT PROJECTIONS FOR OCCUPATIONAL CATEGORIES

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 11 CHANGING JOB REQUIREMENTS ●Consumer preferences ●Business cycles ●New technologies ●Business competition

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 12 Checkpoint ●What are several strong influences on changes in the workforce? ●Strong influences for change in the workforce include consumer preferences, economic conditions (business cycles), new technology, and business competition.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 13 HUMAN RESOURCES OVERVIEW ●Human resources are the people who work for a business ●Management and employees ●Full-time and part-time workers ●Temporary workers and long-time employees ●Human resources department ●Human resources management in small businesses

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 14 HUMAN RESOURCES GOALS 1.Identify the personnel needs of the company. 2.Maintain an adequate supply of people to fill those needs. 3.Match abilities and interests with specific jobs. 4.Provide training and development. 5.Develop plans to compensate personnel. 6.Protect the health and well-being of employees. 7.Maintain a productive and satisfying work environment.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 15 HUMAN RESOURCES ACTIVITIES ●Planning and staffing ●Performance management ●Compensation and benefits ●Organizational development

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 16 PLANNING AND STAFFING ●Job analysis ●Recruitment and selection ●Job placement

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 17 PERFORMANCE MANAGEMENT ●Performance assessment ●Performance improvement ●Managing promotions, transfers, and terminations

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 18 COMPENSATION AND BENEFITS ●Wage and salary planning ●Benefits planning ●Payroll, benefits, and personnel records management

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 19 EMPLOYEE RELATIONS ●Health and safety planning ●Labor relations ●Employment law and policy enforcement ●Organizational development

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 20 Checkpoint ●What are the major goals of human resources? ●Identify the personnel needs ●Maintain an adequate supply of people ●Match abilities and interests with specific jobs. ●Provide training and development ●Develop plans to compensate personnel ●Protect the health and well-being of employees. ●Maintain a satisfying work environment.

© 2012 Cengage Learning. All Rights Reserved. SLIDE Managing Human Resources Goal 1Identify important planning and staffing activities. Goal 2Describe compensation and benefits plans. Goal 3Recognize the goals of performance management.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 22 KEY TERMS ●Job analysis – a specific study of a job to identify in detail the job duties and skill requirements ●Compensation – is the amount of money paid to an employee for work performed. ●Salary and wages – direct payment of money to an employee for work completed. ●Benefits – compensation in forms other than direct payment (ex. Insurance, vacations, retirement plans, etc. ●Incentive systems – connects the amount of compensation to the quality or quantity of an employee’s performance. ●Promotion – is the advancement of an employee to a position with greater responsibility ●Transfer – is the assignment of an employee to another job in the company with similar level of responsibility ●Termination – end the employment relationship between the company and the employee

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 23 HUMAN RESOURCES PLANNING AND JOB ANALYSIS ●Classifying employees ●Determining job requirements

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 24 HUMAN RESOURCES RECRUITING AND HIRING ●The application process ●New employee orientation

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 25 RECRUITING PROSPECTIVE EMPLOYEES ●Company employment office ●Company websites ●Employment agencies, public and private ●Executive recruiters ●Industry publications ●Job search and career websites ●Job and career fairs ●Newspaper advertising, online and print ●Placement offices, school and college ●Radio and television advertising ●Referrals by employees ●Social networking

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 26 Checkpoint ●Why do human resources personnel need to study jobs before beginning the hiring process? ●Human resources personnel need to study jobs before beginning the hiring process to determine the specific skills that are needed so that they can hire a person with the ability to successfully perform the job.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 27 COMPENSATION AND BENEFITS ●Compensation methods ●Employee benefits

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 28 Checkpoint ●List three types of incentive systems for employee compensation. ●Commission ●Piece rate ●Base-plus-incentive systems

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 29 PERFORMANCE MANAGEMENT ●Employee evaluation ●The evaluation process ●The evaluation conference ●Promotions, transfers, and terminations

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 30 Checkpoint ●What is the purpose of an evaluation conference? ●The purpose is to review and discuss the results of the evaluation and plan for the future including any needed performance improvement.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 In-Class Assignment ●An employee to whom a company makes a long-term commitment is considered to be: _____________ ●Companies should interview all prospective employees who apply for a job? True or False? ●On average, the percentage of employees’ wages spent on benefits is____________? ●The employment relationship between a company and an employee is ended with a(an) _______________? SLIDE 31

© 2012 Cengage Learning. All Rights Reserved. SLIDE Organizational Culture and Workforce Diversity Goal 1Recognize factors that contribute to an effective organizational culture. Goal 2Describe the benefits of diversity to an organization, individuals, and society.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 33 KEY TERMS ●Organizational culture – the environment in which people work, made up of the atmosphere, behaviors, beliefs, and relationships ●Work environment – the physical conditions and the psychological atmosphere in which employees work ●Labor union- an organized group of employees who negotiate with employers about issues, such as wages and working conditions ●Diversity – comprehensive inclusion of people with differences in personal characteristics and attributes ●Glass ceiling – an artificial limit placed on minority groups moving into positions of authority and decision-making

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 34 DEVELOPING AN EFFECTIVE CULTURE ●Work environment ●Work-life relationships ●Employer-employee relations ●Labor unions

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 35 Checkpoint ●What are some ways that companies help employees meet personal demands outside the job? ●Companies can maintain a positive organizational culture that respects the demands on employees from outside of the job through personal time, family leave, flextime, job sharing, and flexplace policies.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 36 WORKFORCE DIVERSITY ●Diversity in the United States and throughout the world ●Benefits of diversity ●Organizational benefits ●Individual benefits ●Societal benefits

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 37 FEDERAL LAWS REGULATING DISCRIMINATION ●Equal Pay Act of 1963 ●Civil Rights Act of 1964 ●Age Discrimination and Employment Act of 1967 ●The Americans with Disabilities Act of 1990

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 38 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 and procedures. 5.Provide continuing diversity education. 6.Recognize and celebrate diversity.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 SLIDE 39 Checkpoint ●Identify several organizational, individual, and societal benefits of diversity. ●Organizations benefit from having a larger employment pool from which to select qualified applicants, the ability to project a positive image, and enhanced capability to serve diverse markets. ●Individuals benefit by having the opportunity to develop to their full potential and to feel respected and supported despite their differences. ●Society benefits by a reduction in the social unrest and upheaval caused by prejudice and discrimination. The entire society benefits as diversity opens more job opportunities for everyone.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 8 In-class Assignment ●There are greater numbers of both younger and older employees in the workforce today than in the past. True or False? ●Some employees can complete part or all of their work away from the business site under _______________. ●The term most closely related to diversity is _________________? SLIDE 40