HUMAN RESOURCES, CULTURE, and DIVERSITY

1. HUMAN RESOURCES, CULTURE, and DIVERSITY Chapter 8 Chapter 8 Human Resources, Culture, and Diversity Intro to Business

2. HUMAN RESOURCES BASICS • The Changing Workforce • The workforce is made up of all people 16 years and older who are employed or who are looking for a job. • More than 140 million people have full-time or part-time jobs in the United States workforce. • Most jobs today require at least a high school education. Chapter 8 Human Resources, Culture, and Diversity Intro to Business

3. Types of Jobs • The U.S. economy has moved from an emphasis on goods-producing businesses to service-producing businesses. • The Bureau of Labor Statistics (BLS) estimates that nearly all job growth over the next ten years will occur in service businesses. • Four out of five workers will be employed in service businesses. Chapter 8 Human Resources, Culture, and Diversity Intro to Business

4. Types of Jobs • A white-collar worker is one whose work is more mental than physical and involves the handling and processing of information. • Offices, stores, professional services businesses. • A blue-collar worker is one whose job involves a great deal of manual work, including the operation of machinery and equipment or other production activities. • Factories, construction, farms. Chapter 8 Human Resources, Culture, and Diversity Intro to Business

5. Service-Producing Industries Personal and business services Retail and wholesale trade Finance, insurance, and real estate Government Transportation, communications, and public utilities Goods-Producing Industries Construction Manufacturing Mining Agriculture Types of Jobs Chapter 8 Human Resources, Culture, and Diversity Intro to Business

6. Changing Job Requirements • Increased use of computers and information technologies is changing the nature of both white-collar and blue-collar work. • Often, technology results in a need for higher levels of education and training. • Improved technology can also result in the elimination of jobs. Chapter 8 Human Resources, Culture, and Diversity Intro to Business

7. Consumer Preferences Casting dollar votes New jobs created by demand for new products Jobs eliminated when demand is low for old products Business Cycles Stages of the business cycle affect job opportunities New Technologies Improve efficiency so businesses stay competitive May eliminate jobs or change types of jobs Business Competition Costs are a major factor for businesses to stay competitive Cutting costs may result in downsizing and outsourcing Changing Job Requirements Chapter 8 Human Resources, Culture, and Diversity Intro to Business

8. Changing Job Requirements • Downsizing • A planned reduction in the number of employees needed in a firm in order to reduce costs and make the business more efficient • Outsourcing • Removes work from one company and sends it to another company that can complete it at a lower cost Chapter 8 Human Resources, Culture, and Diversity Intro to Business

9. HUMAN RESOURCES OVERVIEW • Human resources are the people who work for a business. • Qualified employees who are motivated to work efficiently and who complete their jobs with quality contribute to the success of a business • Companies that have difficulty finding qualified employees, have a poor work environment, and suffer from quality issues, waste, and employee errors will have difficulty remaining competitive or meeting customer needs. Chapter 8 Human Resources, Culture, and Diversity Intro to Business

10. HUMAN RESOURCES OVERVIEW • Human resources include management and employees, full-time and part-time workers. • Managing human resources is one of the most important responsibilities of a business. • Most medium- to large-sized businesses have a department devoted to human resources management and activities • The owner of a small business will be responsible for managing human resources or will hire others to complete the work Chapter 8 Human Resources, Culture, and Diversity Intro to Business

11. 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 to prepare people for their jobs and to improve their capabilities as job requirements change. Develop plans to compensate personnel for their work. Protect the health and well-being of employees. Maintain a satisfying work environment. Human Resources Goals Chapter 8 Human Resources, Culture, and Diversity Intro to Business

12. Human Resources Activities • Planning and Staffing • Job analysis • Recruitment and selection • Job Placement • Performance Management • Performance assessment • Performance improvement • Managing promotions, transfers, and terminations Chapter 8 Human Resources, Culture, and Diversity Intro to Business

13. Human Resource Activities • Compensation & Benefits • Wage and salary planning • Benefits planning • Employee Relations • Health and safety planning • Labor relations • Employment law and policy enforcement • Organizational development Chapter 8 Human Resources, Culture, and Diversity Intro to Business

14. MANAGING HUMAN RESOURCES • Human resources management ensures that needed employees are available, productive, paid, and satisfied with their work. • If human resources management does its job well, the company will have employees who do their jobs well. • This will result in a successful, profitable business. Human Resources Planning and Staffing Chapter 8 Human Resources, Culture, and Diversity Intro to Business

15. Planning and Job Analysis • Classifying Employees • Permanent or Temporary • A company makes a long-term commitment to a permanent employee – 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 • Permanent employees are often more productive • A temporary employee is hired for a specific time or to complete a specific assignment • More control over company resources when temporary employees are hired • Full-time or Part-time Chapter 8 Human Resources, Culture, and Diversity Intro to Business

16. Planning and Job Analysis • Determining Job Requirements • Before starting the hiring process, human resources staff studies the work that must be done in the job • A Job Analysis is a specific study of a job to identify in detail the job duties and skill requirements Chapter 8 Human Resources, Culture, and Diversity Intro to Business

17. Recruiting and Hiring • Prospective employees meeting the job requirements must be located. • If the search is not done carefully, an employer may spend a great deal of time and expense and an appropriate employee may still not be found. • There are several good sources for locating prospective employees Chapter 8 Human Resources, Culture, and Diversity Intro to Business

18. Newspaper classified advertising Public and private employment agencies High school and college placement offices Job and career fairs Referrals by employees Internet careerservices Radio and television advertising Industry publications Company web sites Company employment office Effective Sources for Locating Prospective Employees Chapter 8 Human Resources, Culture, and Diversity Intro to Business

19. Recruiting and Hiring • The Application Process • Fill out employment application • Application letter and resume may be requested • Applications are used to remove people who are clearly not qualified for the job and to identify those who appear to be especially qualified • Once applications are reviewed, the top applicants are studied more closely and a few applicants are selected for an interview Chapter 8 Human Resources, Culture, and Diversity Intro to Business

20. Recruiting and Hiring • The Application Process • During the interview: • The applicant may be asked to complete special tests • The applicant may also be introduced to the work area, managers, and co-workers. • The applicant will be given more detailed information about the company and the job • The most qualified applicant will be offered the job Chapter 8 Human Resources, Culture, and Diversity Intro to Business

21. Recruiting and Hiring • New Employee Orientation • Help the new employee get a good start in the company • Meet with human resource specialists to complete all of the paperwork needed to receive pay and benefits and to provide a complete employee record for the company • Several days of training (usually) • Probationary period of several weeks to several months – after this period an employee is usually evaluated to be sure job performance is meeting the company’s expectations Chapter 8 Human Resources, Culture, and Diversity Intro to Business

22. COMPENSATION AND BENEFITS • Compensation • The amount of money paid to an employee for work performed and is made up of two parts: • Salary and Wages • Direct payment of money to an employee for work completed • Benefits • Compensation in forms other than direct payment • Insurance, vacations, low-cost food service, and health and fitness programs Chapter 8 Human Resources, Culture, and Diversity Intro to Business

23. Compensation Methods Time Wage (hourly) Straight Salary -- pays a specific amount of money for each week or month worked Incentive Systems Incentive Systems Commission -- paid a percentage of sales Piece Rate -- paid a specific amount for each unit of work produced Base Plus Incentive -- combines a wage or salary with an additional amount based on performance – one example is profit sharing COMPENSATION AND BENEFITS Chapter 8 Human Resources, Culture, and Diversity Intro to Business

24. COMPENSATION AND BENEFITS • Employee Benefits • 20-40% of an employee’s wage is spent on benefits (on average) • State and Federal Laws require some benefits • Overtime, social security, Medicare, unemployment compensation, workers’ compensation • Insurance Plans • Health, life, dental, and disability • Vacations • Retirement Programs • Employee Savings Plans • Personal or Sick Days Off • Flexible work schedules Chapter 8 Human Resources, Culture, and Diversity Intro to Business

25. COMPENSATION AND BENEFITS • Costs of Benefits Programs • Very high and continue to increase • Each employee may prefer different benefits • Human resources departments have developed cafeteria plans • Allocates a certain amount of money to each employee that can be spent on benefits • The employee selects the preferred benefits Chapter 8 Human Resources, Culture, and Diversity Intro to Business

26. PERFORMANCE MANAGEMENT • Managers work closely with their employees to make sure work is being finished as planned. • Every employee is expected to meet quality standards as well as work efficiently. • Employees must demonstrate effective working relationships with coworkers, managers, and customers. • Employees must upgrade their skills to meet the changing job requirements. • Most companies offer training and development programs to help employees perform well Chapter 8 Human Resources, Culture, and Diversity Intro to Business

27. Employee Evaluation • The Evaluation Process • Managers evaluate the work of all employees on a regular basis • Performance evaluations focus on the specific job duties of each employee and the important work qualities expected of all employees • Communication, interpersonal relationships, quality and quantity of work, and ethical behavior • Managers complete evaluation forms identifying employee’s strengths and areas that need improvement Chapter 8 Human Resources, Culture, and Diversity Intro to Business

28. Employee Evaluation • The Evaluation Conference • The purpose of the conference is to review and discuss the results of the evaluation and to plan for any needed performance improvement. • The conference should be meaningful and positive. • The conference should result in reasonable agreement on the employee’s performance, goals, and plans for the future • The conference should detail the support the employee can expect from the manager and the company in order to improve performance Chapter 8 Human Resources, Culture, and Diversity Intro to Business

29. Promotions, Transfers, and Terminations • Promotion • The advancement of an employee to a position with greater responsibility • Companies want to keep good employees and place them in positions where they can provide the most benefit to the company • When possible, companies should promote from within – fill open positions with current employees Chapter 8 Human Resources, Culture, and Diversity Intro to Business

30. Promotions, Transfers, and Terminations • Transfer • The assignment of an employee to another job in the company with a similar level of responsibility • The job may provide a new challenge for the employee or may be a better match with the person’s skills • Transfers may be due to job cuts or newly created positions Chapter 8 Human Resources, Culture, and Diversity Intro to Business

31. Promotions, Transfers, and Terminations • Termination • Ends the employment relationship between a company and an employee and occurs when • Performance does not meet company’s expectations • Jobs are being reduced • Discharged due to inappropriate work behavior • Layoff – temporary or permanent – due to changing business conditions • Terminations must meet legal requirements and be as helpful as possible to the employee who is asked to leave the business Chapter 8 Human Resources, Culture, and Diversity Intro to Business

32. ORGANIZATIONAL CULTUREand WORKFORCE DIVERSITY • Developing an Effective Culture • Technology and the Internet has changed the way you communicate, share information, and shop • Globalization of business has resulted in greater competition and more opportunities for every business to reach many new customers • The workforce is more diverse • Jobs are changing and being shifted to other countries to help cut costs • Manufacturing jobs are declining • Service jobs are growing at a rapid pace Chapter 8 Human Resources, Culture, and Diversity Intro to Business

33. ORGANIZATIONAL CULTUREand WORKFORCE DIVERSITY • Developing an Effective Culture • Organizational Culture • The environment in which people work, made up of the atmosphere, behaviors, beliefs, and relationships • It shows people how they will be treated and how they are expected to treat others • It identifies what is acceptable behavior and what is not • If a company has a positive organizational culture, employees • enjoy going to work • have positive working relations with coworkers and managers • believe the company values them and their work • are motivated to do a good job for the company Chapter 8 Human Resources, Culture, and Diversity Intro to Business

34. Work Environment • Work Environment • The physical conditions and the psychological atmosphere in which employees work • Physical Conditions • Work area, offices, break rooms, storage area, and all other spaces where employees spend time while at work • Tools and equipment, lighting, temperature, and air quality • Must be safe and healthy • Certain legal requirements of a business Chapter 8 Human Resources, Culture, and Diversity Intro to Business

35. Work Environment • Work Environment • Psychological Atmosphere • Companies need to provide a positive psychological atmosphere • Employees do not want to work in a place where they feel they are mistreated or where their work and ideas are not valued • An atmosphere of mistrust or fear is likely to result in low morale and poor performance among employees Chapter 8 Human Resources, Culture, and Diversity Intro to Business

36. Work-Life Relationships • Balancing work and personal life is an important issue for most employees • A positive organizational culture is one that respects the demands on employees from outside of the job and offers ways for employees to meet those demands while also fulfilling requirements of the job Chapter 8 Human Resources, Culture, and Diversity Intro to Business

37. Personal Time A few hours each month that can be scheduled for non-job activities Volunteering Family Leave For birth or adoption of a child Care for a sick family member Other personal emergencies Flextime Allows employees some choice in how their work days and work hours are arranged Job Sharing Offers one job to two people Each person works a part-time schedule and shares the work space and duties of the job Flexplace Can complete part or all of their work away from the business site Telecommuting Work-Life Relationshipssome companies provide: Chapter 8 Human Resources, Culture, and Diversity Intro to Business

38. Employer-Employee Relations • Both managers and employees want their business to succeed – if everyone can work together to make the business successful, everyone benefits • Unprofitable businesses have to reduce the number of employees and must limit salary and benefit increases • Managers need to make sure the company makes a profit and try to get more work done at a lower cost • Employees are most concerned about pay, working conditions, and job security • Many years ago, employees didn’t have much input into the important decision, bosses just told them what to do Chapter 8 Human Resources, Culture, and Diversity Intro to Business

39. Labor Unions • A Labor Union is an organized group of employees who negotiate with employers about issues, such as wages and working conditions. • Low wages and poor working conditions in the early 20th century caused employees to band together and form labor unions • The popularity of labor unions peaked in the 1940s and 1950s—when 1/3 of the U.S. labor force was unionized—today the percentage is less than 15% Chapter 8 Human Resources, Culture, and Diversity Intro to Business

40. Labor Unions • Occupations with strong union membership include: • Police and firefighters • Government employees • Communications workers • Transportation workers • Construction trades • Manufacturing occupations • Utilities employees Chapter 8 Human Resources, Culture, and Diversity Intro to Business

41. Labor Unions • Unions and management resolve issues through collective bargaining, which is formal negotiation between members of both groups • When agreement is reached, both groups sign a written labor contract • There are also federal and state laws that regulate the relationships of businesses and unions • Today, relationships between many companies and their unions are very positive Chapter 8 Human Resources, Culture, and Diversity Intro to Business

42. WORKFORCE DIVERSITY • The world is diverse, and the United States is the most diverse country in the world. • Prospective employees and customers are attracted to work and shop in businesses where the employees are similar to themselves. • When people with diverse backgrounds and characteristics are promoted into leadership and management positions, it will encourage others like them to work hard to achieve that same success Chapter 8 Human Resources, Culture, and Diversity Intro to Business

43. Benefits of Diversity • Diversity, as it applies to businesses and organizations, is the comprehensive inclusion of people with differences in personal characteristics and attributes • Diversity includes race ethnicity, gender, age, and disability • Diversity also includes socio-economic status, culture, religion, and even personal interests, abilities, and values • When people in an organization are more alike than different, there is often reduced creativity and innovation Chapter 8 Human Resources, Culture, and Diversity Intro to Business

44. Benefits of Diversity • Federal Laws Regulating Discrimination • Civil Rights Act of 1964 • Age Discrimination in Employment Act of 1967 • Americans with Disabilities Act of 1992 • Companies that build a diverse workforce see several benefits: • Organization benefits • Individual benefits • Societal benefits Chapter 8 Human Resources, Culture, and Diversity Intro to Business

45. Organizational Benefits • Prospective employees and managers are drawn from the broadest possible employment pool • The company will have a broader base of knowledge and understanding when making decisions • Prospective customers will have a more positive image of the company • The company will be better at serving diverse markets • Global business strategies will improve Chapter 8 Human Resources, Culture, and Diversity Intro to Business

46. Individual Benefits • Each employee will have the opportunity to develop to their full ability • Glass Ceilings are reduced or eliminated • A glass ceiling is an artificial limit placed on women and minority groups moving into positions of authority and decision-making • Individuals will feel they are respected and supported despite their differences Chapter 8 Human Resources, Culture, and Diversity Intro to Business

47. Societal Benefits • Prejudice and discrimination will be reduced as a societal problem • The country has a more talented, experienced, economically successful workforce Chapter 8 Human Resources, Culture, and Diversity Intro to Business

48. Develop a written commitment to diversity Have the full support of top executives Review evidence of diversity in the company Update policies and procedures Provide continuing diversity education Recognize and celebrate diversity Developing a Diverse Organization Chapter 8 Human Resources, Culture, and Diversity Intro to Business