Human Resource Basics

1. Human Resource Basics

2. Workforce • 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 • Most jobs today require at least a high school education

3. Types of jobs • Service-producing industries- business that perform services that satisfy the needs of other businesses & consumers • ex. 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 • ex. Construction, manufacturing, mining, & agriculture • 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

4. Types of workers • 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 • Offices, stores, etc.

5. Service-Producing Information Finance activities Professional & business services Education & health services Leisure & hospitality Government Goods-Producing Agriculture, mining, & construction Manufacturing Trade Transportation & utilities Industry Categories

6. Changing job requirements • 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 – preferences by consumers have an important effect on available jobs. • 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 • New jobs would be created by the demand for the new products.

7. Business cycles • Stages of the business cycle affect job opportunities • When businesses expand & consumers buy more goods & services, new jobs are created and vice versa • 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

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

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

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

11. 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 • Managing Human Resources is one of the most important responsibilities of a business

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

13. HR Activities Planning & staffing Performance management Compensation & benefits Employee relations

14. Planning & staffing • Identifying & filling all of the jobs in the company with qualified people • Activities • Job analysis • Recruitment & selection • Job placement

15. Performance management Evaluating the work of the employees & improving performance through training & development Other activities: managing promotions, transfers, & terminations

16. Compensation & benefits • Responsible for planning & managing payroll, personnel records, & benefits programs • Employee relations • Responsible for maintaining a safe, healthy, & productive work environment for all employees • Other activities: labor relations employment law & policy enforcement, & organizational development

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

18. Determining job requirements Done before the start of the hiring process 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

19. Recruitment & hiring 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.

20. 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 References should be contacted Applicant may be asked to complete special tests related to needed job knowledge & skills

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

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

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

24. Types of compensation methods • 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 • Base plus incentive – examples include profit sharing • Encourages commitment, teamwork, & effective customer service so that profits will be high

25. Employee benefits • Can be an expensive addition to the cost of compensation • An 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 • The employee selects the preferred benefits • If the costs are higher, the employee pays the difference

26. Employee Evaluation • 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

27. The evaluation process 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 Some companies ask coworkers to provide feedback that is considered in the evaluation

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

29. Promotions, transfers, & terminations 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 When possible, companies should fill open positions with current employees who are familiar w/company

30. Transfers 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.

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

32. Developing an effective 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. • Shows people how they will be treated & how they are expected to treat others.

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

34. Work-life relationships 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 Flextime – choice in how their work days & hours are arranged Job sharing – offers one job to two people

35. 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 who involve employees in decision-making find that better decisions are made

36. Labor unions 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)

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

38. Individual benefits 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 Feel respected & supported despite their differences

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

40. Developing a diverse organization • Develop a written commitment to diversity • Have the full support of top executives • Review evidence of diversity in the company • Update policies & procedures • Provide continuing diversity education • Recognize & celebrate diversity