©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Managing Human Resources Human Resources in Business The Employment Process Employment Law CHAPTER 23

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Human Resources in Business GOALS ● Identify the reasons human resources management is important to businesses and employees. ● Identify and describe each of the major human resources activities. 2 CHAPTER 23

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e The Need for Human Resources ● Human resources management (personnel management) —all activities involved with acquiring, developing, and compensating the people who do the company’s work ● Concerned about employee safety and health, working conditions, wages and benefits ● Managers use the services of the human resources department as they work with their employees 3 CHAPTER 23

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Human Resources Activities ● Employment ● Involves activities required to maintain an adequate number of qualified employees in the company ● Hiring employees, recruiting applicants, determining the qualification of applicants, and hiring most qualified applicant 4 CHAPTER 23

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Human Resources Activities ● Wages and benefits ● Amount a company pays the employee directly and benefit (insurance, vacation time) ● Pay system that classifies jobs according to levels and pay range ● Performance improvement ● Training and educating programs ● Promotions ● Reimburse college cost 5 CHAPTER 23

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Human Resources Activities ● Employee relations ● A formal set of relationships exists between employees and management with labor unions organized in a company ● Employees qualified for their job and there is not discrimination ● Health and safety ● Illness and injury of employee ● Safe working areas ● Safety training ● Smoke free environment ● Fitness centers 6 CHAPTER 23

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Human Resources Activities ● Performance management ● Individual managers are responsible for evaluating the employees they supervise, results used to help improve performance ● 360-degree feedback—uses performance feedback gathered from a broad range of people with whom the employee works with (Supervisors, co-workers, suppliers, customers) ● People completing the review fill out detailed questionnaire and remain anonymous 7 CHAPTER 23

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Human Resources Activities ● Employee assistance ● Provides confidential personal problem – solving, counseling, and support services for employees ● Employment planning and research ● Maintain and review employee records ● Gather competitive information ● Distribute information to alert managers of problems ● Find ways to improve employee productivity 8 CHAPTER 23

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e The Employment Process GOALS ● Describe the steps a business should follow to hire an employee. ● Discuss effective procedures for promoting, transferring, and discharging employees. 9 CHAPTER 23

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Selecting Personnel ● Hiring the right people with the right skills ● Process expensive and time consuming ● Hiring people who do not meet specific job qualifications result in high training costs, poor performance, and dissatisfied employees & customers 10 CHAPTER 23

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Selecting Personnel ● Establishing a need ● Job description—a list of the duties and responsibilities that make up a job ● Job specification—a list of the qualifications and skills a worker needs to do the job 11 CHAPTER 23

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Selecting Personnel ● Recruiting applicants ● Current employees ● When happy with their work, they become an effective recruiting resource ● On site applications ● Large companies with a continuing need to hire new employees accept applications on site ● The Internet ● Employment websites ● Monster and Career Builder 12 CHAPTER 23

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Selecting Personnel ● Recruiting applicants ● Employment agencies ● Public Employment Agency supported by state and federal taxes ● Advertising ● Media, newspapers, television & radio ● Other sources ● Colleges & Universities, Career& Technical Schools, High Schools 13 CHAPTER 23

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Processing Applications ● Application review ● Eliminate applicants who do not meet minimum qualifications ● Screening ● Educational & employment history checked for accuracy ● Testing ● Specific skills tests 14 CHAPTER 23

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Processing Applications ● Interviewing ● Opportunity for the manager to share details about the job and answer questions from the applicant ● Selection and background check ● Complete background check done before making an offer ● Job introduction and orientation ● HR Department and forms ● Initial Training 15 CHAPTER 23

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Promoting, Transferring, and Releasing Employees ● Changes in employment status ● Promotion—the advancement of an employee within a company to a position with more authority and responsibility ● Transfer—the assignment of an employee to another job in the company that, in general, involves the same level of responsibility and authority as the person’s current work ● Discharge—the release of an employee from the company due to inappropriate work behavior ● Layoff—a temporary or permanent reduction in the number of employees because of a change in business conditions 16 CHAPTER 23

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Promoting, Transferring, and Releasing Employees ● Employee turnover ● The rate at which people enter and leave employment in a business during a year ● Exit interview ● A formal interview with an employee who is leaving the company to determine the employee's attitude about the company and seek suggestions for improvement ● Provides feedback about the company’s policies and procedures, management, and operations 17 CHAPTER 23

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Employment Law GOALS ● Describe several ways that employees are protected through federal and state employment legislation. ● Discuss the steps that government and businesses have taken to eliminate discrimination in employment opportunities. 18 CHAPTER 23

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Regulating Employment Conditions and Benefits ● Wages and work hours ● Fair Labor Standards Act (FLSA)—prescribes standards for wages and overtime pay ● Worker safety and health ● Occupational Safety and Health Act (OSHA)— ensures safe and healthful working conditions for working men and women ● Does workplace inspections and investigations ● Part of the Department of Labor 19 CHAPTER 23

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Regulating Employment Conditions and Benefits ● Retirement and employee benefits ● Social Security—a social insurance program funded through payroll contributions ● Formal title is Federal Old-Age and Survivors Insurance Trust and Federal Disability Insurance Trust (OASDI) ● Largest part of OASDI is the payment of retirement benefits ● Upon retirement, the person can begin to receive payment from Social Security ● A worker who is totally disabled, regardless of age, can also receive Social Security benefits ● In 2010, average annual social security payment was less than $14, CHAPTER 23

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Regulating Employment Conditions and Benefits ● Retirement and employee benefits ● Medicare—is health insurance for people 65 or older and for people under 65 with certain disabilities ● Covers hospital insurance, medical insurance, and prescription drug coverage 21 CHAPTER 23

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Regulating Employment Conditions and Benefits ● Retirement and employee benefits ● Family and Medical Leave Act (FLMA)—entitles eligible employees to take unpaid leave for specified family and medical reasons ● Law requires that employers must allow and eligible employee up to a total of 12 weeks of leave for one of the following reasons: ● Birth, adoption, or foster-care placement of a child of the employee ● Caring for immediate family member (spouse, child, or parent) with a serious health condition ● Medical leave for a serious health condition 22 CHAPTER 23

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Regulating Employment Conditions and Benefits ● Workers’ compensation and unemployment ● Workers’ compensation—requires employers to provide insurance for the death, injury or illness of employees that result from their work ● Unemployment insurance—a state-managed program that provides temporary income to individuals who have been laid off from their jobs ● Employees make contributions to state unemployment based on the number of employees and their employment history 23 CHAPTER 23

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Laws that Expand Employment Opportunities ● Civil Rights Act ● This act prohibits discrimination in hiring, training, and promotion of the basis of race, ethnicity, gender, religion, or national origin ● Equal Pay Act ● This act prohibits unequal pay for men and women who are doing substantially the same work 24 CHAPTER 23

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Laws that Expand Employment Opportunities ● Age Discrimination in Employment Act ● This act prohibits discrimination in conditions of employment or job opportunities for persons over 40 years old ● Immigration Reform and Control Act ● This act requires employers to verify that potential employees are not aliens unauthorized to work in the United States and prohibits employment discrimination because of national origin or citizenship status 25 CHAPTER 23

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Laws that Expand Employment Opportunities ● Americans with Disabilities Act ● This act prohibits discrimination against qualified people with disabilities in employment, public services, transportation, public accommodations, and telecommunications. It requires employers to make reasonable accommodations to support the employment of disabled employees 26 CHAPTER 23