BBI2O – Functions of a Business HUMAN RESOURCES

Function of HR Management 1.Evaluating the Labour Market 2.When do you need an employee? 3.The application/interview process 4.Job Training 5.Good employee retention 6.Departures/Dismissals/Retirements 7.Handling compensation 8.Health & Safety 9.Workers/Employee’s rights 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.

1. 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.

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, what’s 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.

2. Determining the Need for a New Employee HR helps businesses to create a staffing plan to avoid hiring under pressure. HR also forecasts a company’s employee turnover, the rate at which employees leave a company for another job or to retire.

3. The Application & Interview Process 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 centers online recruiting Web sites, such as Workopolis/Monster a company’s Web site employee search firm often called a “headhunter” employee referral program recent job applicants.

4. 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.

5. 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 perks—special benefits beyond ordinary compensation— to attract and retain them.

6. 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 (based on seniority usually). Companies sometimes offer severance packages. If provided, outplacement counseling offers terminated employees ways to find new jobs Retirement Retirement occurs when an employee voluntarily withdraws from the labour market.

7. 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. Salary A salary is a fixed amount of money paid to an employee on a regular schedule, usually weekly or monthly. Fee for Service A complete job is paid by one fee, and is usually documented in a signed contract.

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 employee’s sales. 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. 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.

Key Employable Skills Academic Skills Academic skills allow you to obtain, retain, and progress on the job. These skills include the ability to: Communicate, Think, Learn 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.

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. 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.

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.