Chapter 24 Human Resource Planning

Human Resource Management Human Resource Management - Personnel Management The most valuable and important resource in any company is people. Human Resource Departments (HR) ensure that an adequate number of employees are available, that they are well paid and trained, satisfied with their jobs, and productive.

Human Resource Activities Employment Compensation & benefits Training & Development Employee Relations Health & Safety Performance Evaluations Other Activities

Selecting Personnel Illegal Practices should be avoided - discrimination on the basis of race, sex, national origin, religion, color, age. Establishing a Need - Employment Requisition - is a form requesting the HR department to fill a certain position Job Specification - HR needs information about the job qualifications in order to fill it. It includes information on the nature of the work to be done, the necessary qualifications needed by the employee etc...

Selecting Personnel (cont..) Recruiting Applicants Current Employees - often vacancies can be filled with a current employee from another department or job in the company. The job is posted for all employees to see. Recommendations of Present Employees - usually the employee who refers the person hired receives a cash bonus. Previous Applicants - old applications & resumes are reviewed. Education Placement Offices Employment Agencies Advertising

Advertising Advertising - newspaper and magazines are the most popular methods of obtaining job applicants. These methods are usually used when there is a large number of applicants needed immediately. Ad - should attract attention, describe the job, qualifications and working conditions. Open Ads - give the name of the company. These usually result in more applicants with better qualifications than blind ads. Blind Ads - do not identify the company.

Selecting Personnel (cont..) Processing Applications - most organizations require that applicants fill out an application form. Applications should be reviewed to eliminate those who are not qualified Interview the applicants (oral communication is tested) Reference Check to verify information given on application and interview Tests - administered to determine if the applicant has the needed skills and abilities.

Promoting & Transferring Employees Organizations like to keep their employees as long as possible because it is very expensive to recruit, train and hire employees. Promotion - an advancement within the company Seniority - the length of time that an employee has been with the company. Transfers - the assignment of an employee to another job in the company.

Employee Releases Discharge - release of an employee due to inappropriate work behavior (fired) Layoff - a temporary or permanent reduction in the number of employees Employment Turnover - the number of people that enter and leave employment in one year. Exit Interviews - each person exiting a company should be interviewed. Used to determine the employees feelings and insights to problems.

Compensation Methods Compensation - money and other benefits people receive for work. Wage & Salary Plans Wages - compensation that is paid on the hourly basis. Salary - compensation other than an hourly basis, such as weekly, monthly, or yearly. Overtime - employees who work 40 hours or more must be paid 1 1/2 times their regular pay for all hours over 40. Minimum Wages - the Fair Standards Act prescribes a minimum age that must be paid to employees.

Wage & Salary Plans Time Wage Plan - pays the employee a specific amount of money for each each hour worked. Straight salary - pays an employee a specific amount of money regardless of the amount of hours worked. Commission Plan - paid a percentage (sales people). This system provides incentives to employees because the amount of work directly determines the amount of compensation received. Piece-Rate Plan - production workers - pays employees a fixed rate of each unit produced.

Base + Incentive Plans Base + Incentive plans offer a smaller wage combined with an incentive such as commission. With this method the employee is guaranteed a minimum amount of wage or salary, but they can earn an additional amount of money based on their own performance. Bonus - money paid at the end of a specific period of time for performance that exceeds the expected standard Profit Sharing - pay % of the profits of the business to employees Employee stock Ownership Plans (ESOP’s) bonuses are in the form of shares in the company.

Employee Benefits Full-time employees can earn more than their salary in wages. Customary benefits - Life, health, dental, and disability insurance. Pensions - regular payments made to an employee after retirement. A % is put into a pension fund. Vacation Days Holidays Sick Days

Flexible Work Schedules Some employers are experimenting with flexible work schedules. Flex-Time - some employees start early and leave early, while others start and finish late. Job Sharing - allows two people to share one full-time job Flex-Place - some employees are also working from home.

Other HR Responsibilities Employee Health & Safety Employment Laws Equal Opportunity in Employment