Presentation on theme: "1 Chapter 6: Human Resources The Functions of Human Resources Management In business, human resources (HR) is part of the management team who hire workers,"— Presentation transcript:
1 Chapter 6: Human Resources The Functions of Human Resources Management In business, human resources (HR) is part of the management team who hire workers, set up their training programs, and arrange for payment of their salaries. Small companies handle these duties themselves. However, large companies have a human resources department that is responsible for coordinating all employees activities, such as reviewing applications to arranging pay. The Labour Market The labour market is where employers (buyers of skills) meet employees (sellers of skills). Occupational forecasts involve predictions about jobs that help to inform individuals about future job conditions and wages.
2 Chapter 6: Human Resources The Functions of Human Resources Management The Importance of Productivity Employers want employees to be productive: the more they produce in the hours that they work, the more profit the business can make. e.g. If an employee produces 1000 units in a week and is paid $500 per week the approximate cost of labour for each unit is 50¢ ($500 ÷ 1000). What if the employee made 1200? If raw materials cost 9¢/unit and there is an order for 1000 units with a sale price of 99 ¢/unit, whats the difference in profit? The Importance of Skilled Labour A skilled employee means that a business can save money because the worker can usually produce a better product or service. The Importance of a Positive Attitude Happy employees are more productive than unhappy ones. Determining the Need for a New Employee HR helps businesses to create a staffing plan to avoid hiring under pressure. HR also forecasts a companys employee turnover, the rate at which employees leave a company for another job or to retire.
3 Chapter 6: Human Resources The Functions of Human Resources Management Looking for the Right Employee HR uses a variety of recruitment sources to hire qualified employees including newspaper, journal, and magazine advertisements notices at universities or colleges postings on job banks at government employment centres online recruiting Web sites, such as Workopolis a companys Web site employee search firm often called a headhunter employee referral program recent job applicants
4 Chapter 6: Human Resources The Functions of Human Resources Management The Application Process and the Interview A person looking for a position in a company usually submits an application form, a cover letter, and a resumé. An HR person and the department manager who the new employee will work for usually interviews and decides on the successful applicant. Interview Tips dress appropriately go alone know the time, place arrive a few minutes early give a firm handshake, smile and make eye contact, stay focused, remain calm be pleasant, enthusiastic listen to questions, answer briefly be aware of body language thank the interviewer for their time reaffirm interest in the job
5 Chapter 6: Human Resources The Functions of Human Resources Management Job Training Orientation is the time when new employees tour the workplace and meet other co-workers. At this point, employees may also receive training on equipment and be introduced to new technology and software. Keeping Good Employees It is for costly for businesses to search for, hire, and train new employees. Most businesses take steps to retain good employees. Some businesses offer employees perksspecial benefits beyond ordinary compensationto attract and retain them.
6 Chapter 6: Human Resources The Functions of Human Resources Management Departures, Dismissals, and Retirements HR tries to ensure a smooth transition when employees leave the business regardless of the reason for the departure. Businesses need to protect their reputation and maintain good relationships with employees. Departures During an exit interview, the employee may discuss their future goals, provide some feedback about the workplace, and ways for improvement. Some employers give a positive reference for or letter of recommendation to their employees. Dismissals Employers in corrective interviews discuss work problems with employees. Employees then improve or face dismissal. Employee layoffs can occur due to financial cut backs. Companies sometimes offer severance packages. If provided, outplacement counselling offers terminated employees ways to find new jobs.
7 Chapter 6: Human Resources The Functions of Human Resources Management Retirement Retirement occurs when an employee voluntarily withdraws from the labour market. Handling Compensation Compensation is the money and other benefits received by employees in exchange for their work. Hourly Wages A common compensation payment method is an hourly wage. The minimum wage is the lowest hourly wage an employer can legally pay an employee. Overtime is a higher hourly rate for working longer than the regular scheduled time or on holidays.
8 Chapter 6: Human Resources The Functions of Human Resources Management Salary A salary is a fixed amount of money paid to an employee on a regular schedule, usually weekly or monthly. Salary plus Commission Pay based on the amount of sales generated is called commission. Generally, it is a small amount of money added to the salary or hourly wage that acts as an incentive to encourage an employee to work harder. Straight Commission Straight commission is based solely on an employees sales.
9 Chapter 6: Human Resources The Functions of Human Resources Management Incentive Bonus When employees perform well, they may be rewarded with bonuses. Performance-based Pay Piecework is performance-based pay that is calculated on how much product can be made by one person. Sweatshops are piecework factories characterized by low wages and unsafe or unhealthy conditions. Fee for Service A complete job is paid by one fee, and is usually documented in a signed contract.
10 Chapter 6: Human Resources The Functions of Human Resources Management Royalty or Licensing Fee A royalty is a fee paid to the owner of a patent or copyright by someone who uses it. A licensing fee is money paid to obtain a license. Stock Options Stock options are a form of compensation that gives employees the opportunity to buy shares in the company at a lower-than- market price.
11 Chapter 6: Human Resources The Functions of Human Resources Management Health and Safety Federal and provincial laws require businesses to provide and maintain a safe and healthy work environment. Health Sick pay are wages paid to any employee who is absent from work due to illness. Employers benefit from healthy employees. To encourage this, many businesses have established wellness programs that promote the physical and emotional well-being of their employees.
12 Chapter 6: Human Resources The Functions of Human Resources Management Safety According to Part Two of the Canada Labour Code, employees have the right to be informed about known and foreseeable hazards in the workplace identify and resolve job-related problems in safety and health refuse dangerous work if they have reasonable cause to believe that a situation constitutes a danger
13 Chapter 6: Human Resources Key Employability Skills The Conference Board of Canada has developed a list of employability skills including academic skills, personal management skills, and teamwork skills. Academic Skills Academic skills allow you to obtain, retain, and progress on the job. These skills include the ability to communicate think learn
14 Chapter 6: Human Resources Key Employability Skills Personal Management Skills Canadian employers need people who can demonstrate the following skills, attitudes, and behaviours: positive attitudes and behaviours responsibility Teamwork Skills To achieve organizational goals, employees need to work collaboratively with one another in the workplace.
15 Chapter 6: Human Resources Business Careers Professions such as medicine or the law as well as the trades of plumbing or construction are a few of the career choices that people can make today. General Business A high-school education is usually the minimum requirement for entry- level jobs in business. Accounting Careers Professional accountants must be certified and obtain one of the following designations: Certified Accountants (CA) Certified General Accountants (CGA) Certified Management Accountants (CMA)
16 Chapter 6: Human Resources Business Careers Consulting Careers Consultants are individuals who are paid by businesses for their expertise and advice on specific topics. Entrepreneurship Many successful individuals start their own businesses. They apply their skills and invest capital to create unique businesses that meet the needs and wants of consumers. Financial Careers A financial career involves looking after and giving advice about other peoples investments or assets.
17 Chapter 6: Human Resources Business Careers Human Resources Careers Large corporations seek individuals who have taken human resources management courses at a community college or at university. Marketing Careers The range of careers within marketing differ with most requiring post-secondary education, strong communication skills, and a creative edge. Personal Selling Careers Task ranges, skill levels, and incomes vary to a great extent within the personal sales sector.
18 Chapter 6: Human Resources Rights in the Workplace The Universal Declaration of Human Rights, adopted by the General Assembly of the United Nations on December 10, 1948, is the source for many of the workplace rights available to employees and employers today. The Rights of the Employee The provincial and federal governments provide legislation that determines employment standards for public and private sector employees. Each province has human rights legislation that protects employees against discrimination and harassment. The Right of the Employer Employers have the right to hire, dismiss, and promote employees, and to establish conditions of employment that best serve their business goals.