1. Document One

2. Income Statement

3. Income Statement
Revenue

4. Income Statement
Revenue
Less Cost of goods sold

5. Income Statement
Revenue
Less Cost of goods sold
Gross Profit

6. Income Statement
Revenue
Less Cost of goods sold
Gross Profit
Expenses

7. Income Statement Revenue Less Cost of goods sold Gross Profit Expenses
Profit Before Tax

8. Income Statement Revenue Less Cost of goods sold Gross Profit Expenses
Profit Before Tax
Less Taxes

9. Income Statement Revenue Less Cost of goods sold Gross Profit Expenses
Profit Before Tax
Less Taxes
Net Profit after Tax

10. Document Two

11. Balance Sheet

12. Balance Sheet
Assets:

13. Balance Sheet
Assets: Liabilities

14. Balance Sheet
Assets: Liabilities
(Owners) Equity

15. What value does HR add?
“Nothing is more dangerous than a group of people trained in the art of monitoring compliance with rules, fluent in a language that does not include the word for ‘customer’ and who have time on their hands and are looking for something to do.
Thomas Stewart
“Taking on the last bureaucracy”
Fortune, June 15, 1996
This is a fairly cynical look at HR. One that was very common in business not too many years ago. It is often still the mind set of a small business owner who fails to see value in HR done correctly

16. What Do I Need to Know? (1 of 2)
Define human resource management and explain how HRM contributes to an organization’s performance.
Identify the responsibilities of human resource departments.
Summarize the types of skills needed for human resource management.

17. What Do I Need to Know? (2 of 2)
Explain the role of supervisors in human resource management.
Discuss ethical issues in human resource management.
Describe typical careers in human resource management.

18. Human Resource Management (HRM)
The policies, practices, and systems that influence employees’:
behavior
attitudes
performance

19. Figure 1.1: Human Resource Management Practices

20. At companies with effective HRM:
Employees and customers tend to be more satisfied.
The companies tend to:
be more innovative
have greater productivity
develop a more favorable reputation in the community

21. Human Capital
Human Capital – an organization’s employees described in terms of their:
training
experience
judgment
intelligence
relationships
insight
The concept of “human resource management” implies that employees are resources of the employer.

22. Figure 1.2: Impact of Human Resource Management
For an organization to succeed at what it does, it needs employees with certain qualities, such as particular kinds of training and experience.
This view means that employees in today’s organizations are not interchangeable, easily replaced by parts of a system, but the source of the company’s success or failure.
By influencing who works for the organization and how these people work, human resources management therefore contributes to such basic measures of an organization’s success as quality, profitability, and customer satisfaction.
Figure 1.2 (reproduced in this slide) shows this relationship.

23. Strategic Human Resource Management
Strategy comes first
Identify positions and skills needed. Then attract people to those positions. Finally, Lead those workers to become effective
first part of this is organizing
The second part is implementing that structure by staffing.
The third part is the Leadership.
Achieving these goals requires skills in planning, recruiting, training, performance appraisal, wage and salary administration, benefit programs, and even termination.
Human capital refers to the economic value of the combined knowledge, experience, skills, and capabilities of employees.
you can hire it
or grow it
Exhibit 9.1

24. The Changing Nature of Careers
The Changing Social Contract:
We can’t promise you how long we’ll be in business
We can’t promise you that we won’t be acquired
We can’t promise that there’ll be room for promotion
We can’t promise that your job will exist when you reach retirement age
All of these changing factors have a direct impact on the Strategic HRM
What are your career expectations of your self, of the company you work for?
Think they may be different than what mine were when I was your age?

25. Comparing the Social Contract
There have been changes in the relationship between employers and employees
what is expected of each
technologies have changed the character of work
changes in the environment have disrupted this contract.
Careers no longer progress up a vertical hierarchy but move across jobs horizontally.
everyone is expected to be a self-motivated worker, with excellent interpersonal relationships, who is continuously acquiring new skills.
Exhibit 9.4

26. HRM and Sustainable Competitive Advantage
An organization can succeed if it has sustainable competitive advantage.
Human resources have the necessary qualities to help give organizations this advantage:
Human resources are valuable.
Human resources with needed skills and and knowledge are sometimes rare.
Human resources cannot be imitated.
Human resources have no good substitutes.

27. Innovations in HRM Becoming an Employer of Choice
Organizations that are highly attractive to potential employees because of HR practices
Using Temporary and Part-Time Employees
Temporary placements, contracted employees, leased employees
Promoting Work/Life Balance
Telecommuting,
Flexible schedules, part-time, phased retirement, job sharing
Rightsizing the Organization
Reducing the workforce
An employer of choice is a company that is highly attractive to potential employees because its human resource practices focus on both:
Tangible benefits and
Intangible benefits
Teams and Projects. The advent of teams and project management is a major trend in today’s workplace. today’s workers straddle functional and departmental boundaries and handle multiple tasks and responsibilities.
Temporary employees - In 2000, the largest employer in the United States was a temporary employment agency, Manpower Inc. Workers do everything from data entry to interim CEO
Contingent workers: people who work for an organization but not on a permanent or full- time basis, including temporary placements, contracted professionals, or leased employees.
The use of contingent workers means reduced payroll and benefit costs, as well as increased flexibility for both employers and employees.
Technology
Telecommuting and virtual teams are related trends
Outsourcing of IT jobs – allowed for by technology
Work / Life Balance – Maslow’s higher order motivator???
Telecommuting is one strategy
Flexible scheduling is important in today’s workplace – 27% of workforce has flexible hours
Broad Work-Life Balance initiatives – critical retention strategy: on-site gym & childcare, paid leaves & sabbaticals
Downsizing - Intentional, planned reduction in the size of a company’s workforce
Smoothing the downsizing process
Communicate with employees
Provide information
Provide assistance
Use training and development

28. Table 1.1: Responsibilities of HR Departments

29. Analyzing and Designing Jobs
Job Analysis
Job Design
The process of getting detailed information about jobs.
The process of defining the way work will be performed and the tasks that a given job requires.

30. Recruiting and Hiring Employees
Recruitment
Selection
The process through which the organization seeks applicants for potential employment.
The process by which the organization attempts to identify applicants with the necessary knowledge, skills, abilities, and other characteristics that will help the organization achieve its goals.

33. Table 1.2: Top 10 Qualities Employers Seek in Job Candidates

34. Training and Developing Employees
Development
A planned effort to enable employees to learn job-related knowledge, skills, and behavior.
The acquisition of knowledge, skills, and behaviors that improve an employee’s ability to meet changes in job requirements and in customer demands.

35. Managing Performance
Performance Management – The process of ensuring that employees’ activities and outputs match the organization’s goals.
The human resource department may be responsible for developing or obtaining questionnaires and other devices for measuring performance.

36. Planning and Administering Pay and Benefits
Planning Pay & Benefits
Administering Pay & Benefits
How much to offer in salary and wages.
How much to offer in bonuses, commissions, and other performance-related pay.
Which benefits to offer and how much of the cost will be shared by employees.
Systems for keeping track of employees’ earnings and benefits are needed.
Employees need information about their benefits plan.
Extensive record keeping and reporting is needed.

37. Maintaining Positive Employee Relations
Preparing and distributing:
employee handbooks and policies
company publications and newsletters
Dealing with and responding to communications from employees:
questions about benefits and company policy
questions regarding possible discrimination, safety hazards, possible harassment
Collective bargaining and contract administration.

38. Establishing and Administering Personnel Policies
Organizations depend on their HR department to help establish and communicate policies related to:
hiring
discipline
promotions
benefits
All aspects of HRM require careful and discreet record keeping.

39. Ensuring Compliance with Labor Laws
Government requirements include:
filing reports and displaying posters
avoiding unlawful behavior
Managers depend on HR professionals to help them keep track of these requirements.
Lawsuits that will continue to influence HRM practices concern job security.

40. Time Spent on HR Functions
Typical as determined by surveys
68% on administration, compliance and risk management (Transactional )
10% assisting line management
(Traditional)
22% developing employees
( Transformational)

41. Figure 1.4: Supervisors’ Involvement in HRM

42. Ethics in Human Resource Management
Ethics – the fundamental principles of right and wrong.
Ethical behavior is behavior that is consistent with those principles.
Many ethical issues in the workplace involve human resource management.

43. Ethical companies act according to four principles:
In their relationships with customers, vendors, and clients, ethical companies emphasize mutual benefits.
Employees assume responsibility for the actions of the company.
The company has a sense of purpose or vision that employees value and use in their day-to-day work.
They emphasize fairness.

44. Summary
Human resource management (HRM) consists of an organization’s “people practices”
the policies, practices, and systems that influence employees’ behavior, attitudes, and performance.
HRM influences who works for the organization and how those people work.
HR departments have responsibility for a variety of functions related to acquiring and managing employees.

45. Summary (continued)
HR management requires substantial human relations skills, including skill in:
communicating
negotiating
team development
HR professionals also need:
decision-making skills
leadership skills
technical skills

46. Summary (continued)
Non-HR managers must be familiar with the basics of HRM and their own role with regard to managing human resources.
Supervisors typically have responsibilities related to all the HR functions.
HR professionals should make decisions consistent with sound ethical principles.

47. Summary (continued) The decisions of HR professionals should:
Result in the greatest good for the largest number of people.
Respect basic rights of privacy, due process, consent, and free speech.
Treat employees and customers equitably and fairly.
Careers in HR management may involve specialized work in fields such as recruiting, training, or labor relations.

48. Start with the Mission “thing”
Mission and vision of the company
Long term horizon
Aligns company Objectives, Goals Plans
Is external statement of company culture
Reinforced when company behavior is consistent with Mission and Vision
A larger purpose, long term validation
Many people roll their eyes at thinking about mission and vision
But done correctly a company’s mission and vision form the long term aspirations that guide the entity

49. Our mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time
Starbucks
mission is to give people the power to share and make the world more open and connected.
Facebook

50. We firmly believe that our company is a powerful vehicle through which we channel our time, talent and energy in pursuit of the fundamental goal of serving God by serving others. Through our collective action, we greatly magnify the impact of our individual efforts to:
Provide extraordinary service to our customers
Help each other improve
Support our communities
Increase the value of our company
The Anderson’s

51. Employer vs. Employer Market
Most recent trends are toward Employer’s market
Improves opportunities for small business to secure top candidates
Career Builders Survey of job seekers surveyed in past year:
22 Percent found new employment in smaller companies

52. Employer vs. Employer Market
Most recent trends are toward Employer’s market
Improves opportunities for small business to secure top candidates
Career Builders Survey of job seekers surveyed in past year:
22 Percent found new employment in smaller companies

53. Employer vs. Employer Market
Most recent trends are toward Employer’s market
Improves opportunities for small business to secure top candidates
Career Builders Survey of job seekers surveyed in past year:
22 Percent found new employment in smaller companies

54. 59 Percent indicated an interest in working for a smaller company
Reasons Cited for interest in smaller company employment (from a checklist)
56 Percent indicated desire for familial work environment
49% Greater level of individual recognition
48% Less corporate bureaucracy
48 Percent ability to make a difference

55. Reputation as a Good Employer
Keystone
Reputation as a Good Employer

56. Building Your Reputation as an employer
Can a small business compete with larger companies to hire and retain top talent?
Hire who you can get?
Hire who you want?

57. Reputation contd. Celebrate successes Communicate clearly and often
Compensate fairly
Provide exceptional monetary benefits
Provide of exceptional informal benefits
Promote from within
Make the business family friendly
Be proud of developing employees

58. Small Business Myths
If profits allowed higher wages worker motivation problems would disappear.
Small business cannot compete with large business in attracting high quality people
A small business can succeed even if it’s people are failing
People who grew up working in a business like the one employing them are better employees than people with no previous small business experience

59. Myths contd.
Employees who have an ownership interest in the business will be more motivated than people who have none.
Wage incentive plans will provide motivation for people to do their work
Small business employees care about the success or failure of the business only to the extent that they are confident of getting paid