8-1 Human Resources Basics 8-2 Managing Human Resources

C H A P T E R 8 Human Resources, Culture, and Diversity 8-1 Human Resources Basics 8-2 Managing Human Resources 8-3 Organizational Culture and Workforce Diversity

8-1Human Resources Basics Goal 1 Describe the nature of today’s workforce. Goal 2 Identify important goals and activities of human resources.

KEY TERMS • workforce • downsizing • outsourcing

THE U.S. WORKFORCE • All people 16 years and older who are employed or looking for a job • More than 150 million people have full- or part-time jobs Source: The Occupational Outlook Handbook

THE CHANGING WORKFORCE • Education and training • High school education or more as a minimum • Special training (College, MBA, Technical degree…) • Basic skills and a willingness to work hard no longer good enough to get a good job… • Compensation • High-paying jobs – require more skills and education • Low-paying jobs – harder to live comfortably • Type of Work • Working with machines and technology • Working mainly with people and information

TYPES OF JOBS • Classified by industry • Service-providing industries • services that satisfy the needs of other businesses and consumers. • Goods-producing industries • produce or manufacture products • Classified by occupation • White-collar jobs (example Accountant) • is one whose work is more mental than physical • Blue-collar jobs • involves a great deal of physical work

SERVICE-PROVIDING INDUSTRIES • Trade, transportation, and utilities • Information • Financial activities • Professional and business services • Real Estate • Educational and health services • Leisure and hospitality • Other services

GOODS-PRODUCING INDUSTRIES • Natural resources and mining • Construction • Manufacturing Teamwork activity (handout)

OCCUPATIONAL CATEGORIES • Professional (Services) • 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

EMPLOYMENT PROJECTIONS FOR OCCUPATIONAL CATEGORIES The Occupational Outlook Handbook

Where the jobs are • The BLS estimates that the economy will add more than 15 million new jobs over the next 10 years. Almost all of that job growth will be in service- providing industries

Team Work Activity • Each year, Fortune magazine identifies the “Best Companies to Work For” based on high rankings from each company’s employees. • As a team, make a list of things a company can do that you believe would help it make it to the “Best Companies... ” list.

Teamwork Activity

CHANGING JOB REQUIREMENTS • Consumer preferences • Jobs are affected by consumer demand for a product or service • Business cycles • Stages of the business cycle affect job opportunities • New technologies • improves efficiency so that businesses may stay competitive • Business competition • Companies must be competitive to stay in business.

Business competition • Downsizing • is a planned reduction in the number of employees needed • Outsourcing • removes work from one company and sends it to another company that can complete it at a lower cost.

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.

Life Span Plan • Why might it not make sense to set a life-span goal of becoming a US Mail Carrier? • Explain why it is necessary to understand changes that are taking place in the workplace when you set your life-span goals.

HUMAN RESOURCES OVERVIEW • Human resources are the people who work for a business it is different from other types of resources used by a company • Management and employees • Full-time and part-time workers • Temporary workers and long-time employees

HUMAN RESOURCES OVERVIEW • Human resources department • Larger companies have a department to handle this function • Human resources management in small businesses • The owner of a small business will be responsible for managing human resources

HUMAN RESOURCES GOALS • Identify the personnel needs of the company. • Maintain an adequate supply of people to fill those needs. • 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 productive and satisfying work environment.

HUMAN RESOURCES FUNCTIONS • Planning and staffing • Performance management • Compensation and benefits • Employee Relations

PLANNING AND STAFFINGActivities • Job analysis • Recruitment and selection • Job placement

PERFORMANCE MANAGEMENT Activities • Performance assessment • Performance improvement • Managing promotions, transfers, and terminations

COMPENSATION AND BENEFITS Activities • Wage and salary planning • Benefits planning • Payroll, benefits, and personnel records management

EMPLOYEE RELATIONSActivities • Health and safety planning • Labor relations • Employment law and policy enforcement • Organizational development

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.

8-2 Managing Human Resources Goal 1 Identify important planning and staffing activities. Goal 2 Describe compensation and benefits plans. Goal 3 Recognize the goals of performance management.

Planning and Staffing Activities • Job analysis • Recruitment and Selection (Hiring Process) • Job placement

KEY TERMS • Job analysis • study of a job to identify in detail the job duties and skill requirements. • Compensation (salary/wages and benefits) • amount of money paid to an employee for work performed. • A time wage pays the employee a specific amount of money for each hour worked. • A straight salary pays a specific amount of money for each week or month worked.

KEY TERMS • Salary and wages • Payment of money to an employee for work • Benefits • Compensation other than money

KEY TERMS • Incentive systems • connect the amount of compensation to the quality or quantity of an employee’s performance.

KEY TERMS • Promotion - advancement of an employee to a position with greater responsibility. • Transfer - assignment of an employee to another job in the company with a similar level of responsibility

KEY TERMS • Termination – ends the employment relationship between a company and an employee • discharge that ends employment due to inappropriate work behavior (Your Fired!) • layoff, which is a temporary or permanent reduction in the number of employees due to changing business conditions

HUMAN RESOURCES PLANNING AND JOB ANALYSIS • Classifying employees • permanent employee is one to whom the company makes a long-term commitment. It is expected that the employee will work for the business as long as the business is profitable and the employee’s performance is satisfactory. • temporary employee is one hired for a specific time or to complete a specific assignment.

HUMAN RESOURCES PLANNING AND JOB ANALYSIS • Whether permanent or temporary, employees can be hired full-time or part-time. • A full-time employee regularly works a schedule of 30 hours or more a week. • A part-time employee has a shorter work schedule with either fewer hours each day or fewer days each week.

HUMAN RESOURCES RECRUITING AND HIRING • The application process • The application gathers personal information, information on education, and work experience history. It may also ask for specific skills related to the job and contact information for people who can serve as references.

HUMAN RESOURCES RECRUITING AND HIRING • New Employee Orientation – The final step in the hiring process • new employee gets a good start in the company. The new employee will meet with human resources specialists to complete all of the paperwork needed to receive pay and benefits. • the company will have a complete employee record. There will usually be at least several days of training. The employee may be paired with an experienced co-worker, or mentor.

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 RECRUITING PROSPECTIVE EMPLOYEES

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.

COMPENSATION AND BENEFITS • Compensation methods - Salary and Wages are direct payment of money to an employee for work completed. • A time wage pays the employee a specific amount of money for each hour worked. • A straight salary pays a specific amount of money for each week or month worked. • Employee benefits – Compensation other than direct payment is known as benefits. (insurance, vacations, retirement plans, and health and fitness programs.)

COMPENSATION AND BENEFITS • List three types of incentive systems for employee compensation. • Commission • employee is paid a percentage of sales for which he or she is responsible • Piece rate • Employee receives a specific amount for each unit of work produced. • Base-plus-incentive systems • combines a wage or salary with an additional amount based on the employee’s performance. • Profit Sharing – Wage and percent of company profit

Benefits • Businesses are required by law to offer the following benefits • Social Security • Medicare • Overtime compensation • May offer • Health insurance • Retirement account

PERFORMANCE MANAGEMENT • Employee evaluation • The evaluation process • focus on the specific job duties of each employee. They also review the important work qualities expected of all employees. • The evaluation conference • review and discuss the results of the evaluation • plan for any needed performance improvement. – • identify the support the employee can expect from the manager and the company in order to improve performance.

8-3 Organizational Culture and Workforce Diversity Goal 1 Recognize factors that contribute to an effective organizational culture. Goal 2 Describe the benefits of diversity to an organization, individuals, and society.

KEY TERMS • organizational culture • the environment in which people work, made up of the psychological 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.

Key Terms • diversity • is the 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.

DEVELOPING AN EFFECTIVE CULTURE • Work-life relationships • A positive organizational culture is one that respects the pressures on employees from outside of the job. • Personal time is a few hours each month that can be scheduled for non-job activities • Family leave policies allow employees to take a leave from work for the birth or adoption of a child, to care for a sick family member • Flextime allows employees some choice in how their work days and work hours are arranged. • Job sharing offers one job to two people. • Flexplace means that some employees can complete part or all of their work away from the business site

DEVELOPING AN EFFECTIVE CULTURE • Employer-employee relations • Managers who involve employees in decision-making find that better decisions are made. Employees are more likely to support those decisions.

DEVELOPING AN EFFECTIVE CULTURE • Labor unions • The percentage of U.S. workers who belong to a union has been steadily declining and is now about 12 percent. • Unions and management resolve issues through collective bargaining, which is formal negotiation between members of both groups

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.

8-1 Human Resources Basics 8-2 Managing Human Resources