1. Introduction to Business © Thomson South-Western ChapterChapter Human Resources, Culture, and Diversity 8-1 8-1Human Resources Basics 8-2 8-2Managing Human Resources 8-3 8-3Organizational Culture and Workforce Diversity 8

2. Introduction to Business © Thomson South-Western Chapter 8 Slide 2 THE U.S. WORKFORCE All people 16 years and older who are employed of looking for a job More that 140 million people have full- or part-time jobs Most jobs today require at least a high school education.

3. Introduction to Business © Thomson South-Western Chapter 8 Slide 3 THE CHANGING WORKFORCE Education and training High school education Special training Basic skills and a willingness to work hard Compensation High paying jobs Low paying jobs Type of Work Working with machines and technology Working mainly with people and information

4. Introduction to Business © Thomson South-Western Chapter 8 Slide 4 TYPES OF JOBS Classified by industry Service-producing industries – include businesses that perform services that satisfy the needs of other businesses and consumers. Goods-producing industries – include businesses that produce or manufacture products used by other businesses or purchased by final consumers.

5. Introduction to Business © Thomson South-Western Chapter 8 Slide 5 Classified by occupation White-collar jobs – one whose work is more mental than physical and involves the handling and processing of information. Blue-collar jobs – one whose job involves a great deal of manual work, including the operation of machinery and equipment or other production activities.

6. Introduction to Business © Thomson South-Western Chapter 8 Slide 6 INDUSTRY CATEGORIES Service-producing industries Personal and business services Retail and wholesale trade Finance, insurance, and real estate Government Transportation, communications, and public utilities

7. Introduction to Business © Thomson South-Western Chapter 8 Slide 7 INDUSTRY CATEGORIES Goods-producing industries Construction Manufacturing Mining Agriculture (continued)

8. Introduction to Business © Thomson South-Western Chapter 8 Slide 8 OCCUPATIONAL CATEGORIES Professional Business and financial operations Service Construction and extraction Installation, maintenance, and repair Transportation and material moving Sales and marketing Management Office and administrative support Farming, fishing, and forestry Production – slowest employment growth in next ten years

9. Introduction to Business © Thomson South-Western Chapter 8 Slide 9 EMPLOYMENT PROJECTIONS FOR OCCUPATIONAL CATEGORIES

10. Introduction to Business © Thomson South-Western Chapter 8 Slide 10 CHANGING JOB REQUIREMENTS Consumer preferences Business cycles New technologies – increased use of computers and information technology in factories and construction is changing the nature of both types of work (blue & white collar).

11. Introduction to Business © Thomson South-Western Chapter 8 Slide 11 Business competition – Businesses must be competitive to stay in business. Costs are a major factor. Downsizing – the planned reduction in the number of employees needed in a firm in order to reduce costs and make the business more efficient. Outsourcing – removes work from one company and sends it to another company that can complete it at a lower cost.

12. Introduction to Business © Thomson South-Western Chapter 8 Slide 12 HUMAN RESOURCES OVERVIEW Human resources are the people who work for a business Management and employees Full-time and part-time workers Temporary workers and long-time employees Human resources department Human resources management in small businesses

13. Introduction to Business © Thomson South-Western Chapter 8 Slide 13 Human Resources Goals 1. 1.Identify the personnel needs of the company. 2. 2.Maintain an adequate supply of people to fill those needs. 3. 3.Match abilities and interests with specific jobs. 4. 4.Provide training and development to prepare people for their jobs and to improve their capabilities as job requirements change.

14. Introduction to Business © Thomson South-Western Chapter 8 Slide 14 Human Resources Goals 5. 5.Develop plans to compensate personnel for their work. 6. 6.Protect the health and well-being of employees. 7. 7.Maintain a satisfying work environment. (continued)

15. Introduction to Business © Thomson South-Western Chapter 8 Slide 15 Human Resources Activities Planning and staffing Job analysis Recruitment and selection Job placement Performance management Performance assessment Performance improvement Managing promotions, transfers, and terminations

16. Introduction to Business © Thomson South-Western Chapter 8 Slide 16 Human Resources Activities Compensation and benefits Wage and salary planning Benefits planning Payroll, benefits, and personnel records management Employee relations Health and safety planning Labor relations Employment law and policy enforcement Organizational development (continued)

17. Introduction to Business © Thomson South-Western Chapter 8 Slide 17 HUMAN RESOURCES PLANNING AND JOB ANALYSIS Classifying employees Permanent employee – one whom the company makes a long-term commitment. It is expected that the employee will work for the business as long as the business is profitable and the employee’s performance is satisfactory. Temporary employee – one hired for a specific time or to complete a specific assignment.

18. Introduction to Business © Thomson South-Western Chapter 8 Slide 18 Full-time employee – regularly works a schedule of 30 hours or more a week. Part-time employee - has a shorter work schedule with either fewer hours each day or fewer days each week. Temporary employees – usually hired during a busy time for the business or when a special task needs to be done.

19. Introduction to Business © Thomson South-Western Chapter 8 Slide 19 Determining job requirements – human resources study the work that needs to be done in the job. Job analysis – a specific study of a job to identify in detail the job duties and skill requirements.

20. Introduction to Business © Thomson South-Western Chapter 8 Slide 20 HUMAN RESOURCES RECRUITING AND HIRING The application process New employee orientation – The final step in the hiring process/helps the new employee get a good start in the company.

21. Introduction to Business © Thomson South-Western Chapter 8 Slide 21 LOCATING PROSPECTIVE EMPLOYEES

22. Introduction to Business © Thomson South-Western Chapter 8 Slide 22 COMPENSATION AND BENEFITS Compensation methods Salary and wages Benefits Straight salary – pays a specific amount of money for each week or moth worked. Commission – paid for percentage of sales Piece rate – specific amount for each unit of work produced Base plus incentive – combines wage or salary with an additional amount based on the employee’s performance. Ex – profit sharing

23. Introduction to Business © Thomson South-Western Chapter 8 Slide 23 Employee benefits Benefits are expensive State and federal laws require some benefits. Overtime Social security Medicare Insurance Vacations Retirement programs Employee savings plans Personal days/sick days

24. Introduction to Business © Thomson South-Western Chapter 8 Slide 24 PERFORMANCE MANAGEMENT – managers work closely with their employees to make sure meeting goals. Employee evaluation The evaluation process The evaluation conference Promotions, transfers, and terminations Promotion – the advancement of an employee to a position with greater responsibility. Transfer – assignment of an employee to another job in the company Termination – ends the employment relationship Layoff – temporary or permanent reduction in the number of employees due to changing business conditions.

25. Introduction to Business © Thomson South-Western Chapter 8 Slide 25 DEVELOPING AN EFFECTIVE CULTURE Work environment – is the physical conditions and the psychological atmosphere in which employees work. Not all jobs can be physically comfortable – some require to work in very hot or cold conditions. Some require a great deal of physical effort and come quite hazardous.

26. Introduction to Business © Thomson South-Western Chapter 8 Slide 26 Work-life relationships Personal time – non-job activities Family leave – leave of absence for the birth or adoption of a child, to care for sick family member or for other personal emergencies. Family and Medical Leave Act – company employs 50 or more people – provide 12 weeks of unpaid leave for employees who face specific family or personal circumstances. Flextime – allows employees some choice in how their work days and work hours are arranged. Job sharing – offers one job to two people. Flexplace - complete part or all of their work away from the business site.

27. Introduction to Business © Thomson South-Western Chapter 8 Slide 27 Employer-employee relations Managers and employees do not always have the same immediate goals. Labor unions – an organized group of employees who negotiate with employers about issues, such as wages and working conditions. Collective bargaining – formal negotiation between members/company

28. Introduction to Business © Thomson South-Western Chapter 8 Slide 28 WORKFORCE DIVERSITY Diversity in the United States and throughout the world Benefits of diversity Organizational benefits Individual benefits Societal benefits

29. Introduction to Business © Thomson South-Western Chapter 8 Slide 29 FEDERAL LAWS REGULATING DISCRIMINATION The Civil Rights Act of 1964 – prohibits job discrimination based on race, color, religion, gender, and national origin. The Age Discrimination and Employment Act of 1967 – protects individuals who are 40 years of age or older. The Americans with Disabilities Act – prohibits discrimination based on disabilities.

30. Introduction to Business © Thomson South-Western Chapter 8 Slide 30 DEVELOPING A DIVERSE ORGANIZATION 1. 1.Develop a written commitment to diversity. 2. 2.Have the full support of top executives. 3. 3.Review evidence of diversity in the company. 4. 4.Update policies and procedures. 5. 5.Provide continuing diversity education. 6. 6.Recognize and celebrate diversity.