Human resources, Human resources, Culture, and DiversityCulture, and Diversity

Intro to BusinessIntro to Business

Chapter 8Chapter 8

Changing WorkforceChanging Workforce

WorkforceWorkforce: all people 16 years & : all people 16 years & older who are employed or looking older who are employed or looking for a job.for a job.

Bureau of Labor Statistics – publishes Bureau of Labor Statistics – publishes many useful materials about the many useful materials about the workforce.workforce.

Occupational Outlook Handbook – Occupational Outlook Handbook – published by BLS offers up-to-date published by BLS offers up-to-date information re: U.S. workforce.information re: U.S. workforce.

Occupational Outlook HandbookOccupational Outlook Handbook

Analyzes 2 major types of industriesAnalyzes 2 major types of industries Service Producing Industries – Service Producing Industries –

business that perform services that business that perform services that satisfy the needs of other businesses satisfy the needs of other businesses and consumers.and consumers.

Goods producing industries – Goods producing industries – produce or manufacture products produce or manufacture products used by other businesses or used by other businesses or purchased by final comsumers.purchased by final comsumers.

Jobs ins U.S EconomyJobs ins U.S Economy

U.S. moving from emphasis on U.S. moving from emphasis on goods-producing to service-goods-producing to service-producing businesses.producing businesses.

Nearly all job growth from 2002-2012 Nearly all job growth from 2002-2012 is in service-producing businesses.is in service-producing businesses.

Four out of five workers will be Four out of five workers will be employed in a service industry by employed in a service industry by 2012.2012.

Grouping OccupationsGrouping Occupations

White Collar – more mental than White Collar – more mental than physical, involves handling and physical, involves handling and processing of information.processing of information.

Blue Collar – a great deal of manual Blue Collar – a great deal of manual work, includes operation of work, includes operation of machinery and equipment.machinery and equipment.

BLS breaks down jobs into 12 BLS breaks down jobs into 12 categories.categories.

EMPLOYMENT PROJECTIONS FOR EMPLOYMENT PROJECTIONS FOR OCCUPATIONAL CATEGORIESOCCUPATIONAL CATEGORIES

Changing Job RequirementsChanging Job Requirements

Consumer Preferences – consumer Consumer Preferences – consumer demand influences the job marketdemand influences the job market

Business Cycles – cycle effects number Business Cycles – cycle effects number and types of jobs available.and types of jobs available.

New Technologies – manual labor replaced New Technologies – manual labor replaced by tech. New jobs to manage tech.by tech. New jobs to manage tech.

Business Competition – Downsizing and Business Competition – Downsizing and outsourcing are 2 steps businesses take to outsourcing are 2 steps businesses take to stay competitive.stay competitive.

Human ResourcesHuman Resources

Human resources are people who Human resources are people who work for a business.work for a business.

One of the most important One of the most important responsibilities of a business.responsibilities of a business.

Most medium – large businesses Most medium – large businesses have a department dedicated to have a department dedicated to human resources.human resources.

HUMAN RESOURCES HUMAN RESOURCES OVERVIEWOVERVIEW

Human resourcesHuman resources are the people who are the people who work for a business work for a business • Management and employeesManagement and employees• Full-time and part-time workersFull-time and part-time workers• Temporary workers and long-time employees Temporary workers and long-time employees

Human resources departmentHuman resources department Human resources management in small Human resources management in small

businessesbusinesses

Human Resources GoalsHuman Resources Goals

1.1. Identify the personnel needs of the Identify the personnel needs of the company.company.

2.2. Maintain an adequate supply of people to Maintain an adequate supply of people to fill those needs.fill those needs.

3.3. Match abilities and interests with specific Match abilities and interests with specific jobs.jobs.

4.4. Provide training and development to Provide training and development to prepare people for their jobs and to prepare people for their jobs and to improve their capabilities as job improve their capabilities as job requirements change.requirements change.

Human Resources GoalsHuman Resources Goals

5.5. Develop plans to compensate personnel Develop plans to compensate personnel for their work.for their work.

6.6. Protect the health and well-being of Protect the health and well-being of employees.employees.

7.7. Maintain a satisfying work environment.Maintain a satisfying work environment.

(continued)

Human Resources ActivitiesHuman Resources Activities

Planning and staffingPlanning and staffing• Job analysisJob analysis• Recruitment and selectionRecruitment and selection• Job placementJob placement

Performance managementPerformance management• Performance assessmentPerformance assessment• Performance improvementPerformance improvement• Managing promotions, transfers, and Managing promotions, transfers, and

terminationsterminations

Human Resources ActivitiesHuman Resources Activities

Compensation and benefitsCompensation and benefits• Wage and salary planningWage and salary planning• Benefits planningBenefits planning• Payroll, benefits, and personnel records Payroll, benefits, and personnel records

managementmanagement Employee relationsEmployee relations

• Health and safety planningHealth and safety planning• Labor relationsLabor relations• Employment law and policy enforcementEmployment law and policy enforcement• Organizational developmentOrganizational development

(continued)

Planning and Job AnalysisPlanning and Job Analysis

Classifying Employees – will person hired Classifying Employees – will person hired be permanent (company makes a long-be permanent (company makes a long-term commitment) or temporary (hired term commitment) or temporary (hired for specific time or assignment).for specific time or assignment).

Determining Job Requirements – HR Determining Job Requirements – HR studies the work that must be done in a studies the work that must be done in a specific job. specific job. • Job analysis identifies job duties and skill Job analysis identifies job duties and skill

requirements.requirements.

Recruiting and HiringRecruiting and Hiring

Imperative that businesses hire the Imperative that businesses hire the right employee for the job.right employee for the job.

Application Process – used to screen Application Process – used to screen candidates to choose appropriate candidates to choose appropriate interviews. Employees are chosen interviews. Employees are chosen from interviews.from interviews.

New Employee Orientation – Training New Employee Orientation – Training given to new hires to acclimate them given to new hires to acclimate them to their new job.to their new job.

LOCATING PROSPECTIVE LOCATING PROSPECTIVE EMPLOYEESEMPLOYEES

Compensation & BenefitsCompensation & Benefits

Compensation – amount of money Compensation – amount of money paid to an employee for work paid to an employee for work performed.performed.• Salary and wages – direct payment of Salary and wages – direct payment of

money to an employee.money to an employee.• Benefits – compensation other than Benefits – compensation other than

direct payment. Includes insurance, direct payment. Includes insurance, vacations, low-cost food service, and vacations, low-cost food service, and health and fitness programs.health and fitness programs.

Compensation MethodsCompensation Methods

Time wage - $/hourTime wage - $/hour Straight Salary - $/week, month, yearStraight Salary - $/week, month, year Incentive systems – commissions Incentive systems – commissions

and/or bonuses paid based upon and/or bonuses paid based upon amount of work completed by the amount of work completed by the employee.employee.

Some companies use base plus Some companies use base plus incentive.incentive.

Employee BenefitsEmployee Benefits

Mandated Benefits – compensation Mandated Benefits – compensation for overtime; social security, for overtime; social security, Medicare; workers compensation; Medicare; workers compensation; and unemployment.and unemployment.

Optional benefits – health insurance; Optional benefits – health insurance; vacation; retirement plans; sick days; vacation; retirement plans; sick days; flexible work schedules.flexible work schedules.

Benefit cost are Skyrocketing!Benefit cost are Skyrocketing!

Employee EvaluationEmployee Evaluation

Evaluation Process – focus on the Evaluation Process – focus on the specific duties of the employee as specific duties of the employee as well as qualities expected of all well as qualities expected of all employees.employees.

Evaluation Conference – meeting Evaluation Conference – meeting between manager and employee to between manager and employee to discuss the evaluation as well as discuss the evaluation as well as steps that may be taken in the future steps that may be taken in the future to improve work performance.to improve work performance.

Promotions, Transfers, TerminationPromotions, Transfers, Termination

Promotion – advancement of Promotion – advancement of employee to a position with greater employee to a position with greater responsibility.responsibility.

Transfer – assignment of an Transfer – assignment of an employee to another position in the employee to another position in the company with similar responsibilities.company with similar responsibilities.

Termination – ends the relationship Termination – ends the relationship between employee and company.between employee and company.

Organizational CultureOrganizational Culture

The environment in which people The environment in which people work, made up of the atmosphere, work, made up of the atmosphere, behaviors, beliefs, and relationships.behaviors, beliefs, and relationships.

It shows people how they are to be It shows people how they are to be treated as well as how they are to treated as well as how they are to treat others.treat others.

Helps motivate people to do a good Helps motivate people to do a good job for the company.job for the company.

Work EnvironmentWork Environment

The physical conditions and the The physical conditions and the psychological environment in which psychological environment in which employees work.employees work.

Physical conditions – every thing included Physical conditions – every thing included in the work environment that one can in the work environment that one can touch. Must be safe and healthy.touch. Must be safe and healthy.

Psychological conditions – how employees Psychological conditions – how employees are treated by other employees. This are treated by other employees. This includes peers as well as supervisors.includes peers as well as supervisors.

Work-Life RelationshipsWork-Life Relationships

Personal Time – employees allowed Personal Time – employees allowed to complete personal tasks on to complete personal tasks on company time.company time.

Family Leave – employees take time Family Leave – employees take time off to attend to family needs.off to attend to family needs.

Flextime – employees choose how Flextime – employees choose how their work day is organized.their work day is organized.

Employer-Employee RelationsEmployer-Employee Relations

In the past the boss/manager made In the past the boss/manager made all decisions regarding the company.all decisions regarding the company.

Effective managers involve Effective managers involve employees in decision-making employees in decision-making process whenever possible.process whenever possible.

In return, employees are expected to In return, employees are expected to cooperate with management to do cooperate with management to do what is best for the business.what is best for the business.

Labor UnionsLabor Unions

Organized group of employees who Organized group of employees who negotiate with employers about issues, negotiate with employers about issues, such as wages and working conditions.such as wages and working conditions.

1940’s and 1950’s 33% of work force was 1940’s and 1950’s 33% of work force was unionized. Now it is less than 15%.unionized. Now it is less than 15%.

Collective Bargaining – formal negotiations Collective Bargaining – formal negotiations between labor and management.between labor and management.

Relationship is more collaborative than in Relationship is more collaborative than in the past.the past.

Workforce DiversityWorkforce Diversity

Diversity – comprehensive inclusion Diversity – comprehensive inclusion of people with differences in personal of people with differences in personal characteristics and attributes.characteristics and attributes.

Diversity promotes a work place Diversity promotes a work place conducive to satisfied employees conducive to satisfied employees bringing different ideas together.bringing different ideas together.

Organizational BenefitsOrganizational Benefits

Prospective Employees and Prospective Employees and managers are drawn from the managers are drawn from the broadest possible employment pool.broadest possible employment pool.

Company will have a broader base of Company will have a broader base of knowledge and understanding.knowledge and understanding.

Prospective customers will have a Prospective customers will have a more positive image of the company.more positive image of the company.

Company will be better at serving Company will be better at serving diverse markets.diverse markets.

Individual BenefitsIndividual Benefits

Each employee will have the Each employee will have the opportunity to develop to their full opportunity to develop to their full ability.ability.

Eliminates Glass CeilingsEliminates Glass Ceilings Individuals will feel they are Individuals will feel they are

respected and supported despite respected and supported despite their differences.their differences.

Societal BenefitsSocietal Benefits

Prejudice and discrimination will be Prejudice and discrimination will be reduced as societal problems.reduced as societal problems.

The country has a more talented, The country has a more talented, experienced, economically successful experienced, economically successful workforce.workforce.

DEVELOPING A DIVERSE DEVELOPING A DIVERSE ORGANIZATIONORGANIZATION

1.1. Develop a written commitment to Develop a written commitment to diversity.diversity.

2.2. Have the full support of top executives.Have the full support of top executives.

3.3. Review evidence of diversity in the Review evidence of diversity in the company.company.

4.4. Update policies and procedures.Update policies and procedures.

5.5. Provide continuing diversity education.Provide continuing diversity education.

6.6. Recognize and celebrate diversity.Recognize and celebrate diversity.

DEVELOPING A DIVERSE DEVELOPING A DIVERSE ORGANIZATIONORGANIZATION

1.1. Develop a written commitment to Develop a written commitment to diversity.diversity.

2.2. Have the full support of top executives.Have the full support of top executives.

3.3. Review evidence of diversity in the Review evidence of diversity in the company.company.

4.4. Update policies and procedures.Update policies and procedures.

5.5. Provide continuing diversity education.Provide continuing diversity education.

6.6. Recognize and celebrate diversity.Recognize and celebrate diversity.

FEDERAL LAWS REGULATING FEDERAL LAWS REGULATING DISCRIMINATIONDISCRIMINATION

The Civil Rights Act of 1964The Civil Rights Act of 1964 The Age Discrimination and The Age Discrimination and

Employment Act of 1967 Employment Act of 1967 The Americans with Disabilities Act The Americans with Disabilities Act