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Chapter 7 - Human Resources & Managment

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Darren Yung

on 5 January 2015

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Transcript of Chapter 7 - Human Resources & Managment

Chapter 7 - Human Resources & Management
People & Productivity

Creating a Positive Attitude in the Workplace

The Role of the Human Resources Manager

Rights in the Workplace

Organization & Management

Driving Force of a Successful Business
THE most important resource that a successful business owner has to be responsible for.
For a business to reach its goal, the leaders and managers have to manage the people who work for them.
Labour Market
Think of it where:
Customers are the employers - they "purchase" the "resource"
The "resource to be purchased" are the employees.
What differentiates various different employees are their skill sets.
Occupational Forecasts - the prediction of jobs.
What occupations and skills are available?
What education is available in the community?
What is the economic condition of the area?
Find potential employers
Determine in-demand skills
What is the employment rate?
Available wages and benefits
Future job prospects
Types of Labour
Unskilled Labour - Little to no training required
Dishwasher, ditch digger, manual labour work
Semiskilled Labour - requires some training/instruction
Cashier, Fast food cook
Skilled Labour - requires formal training
Chef, baker, hairdresser
Professional Labour - highly trained with specific occupations
accountants, teachers, electricians
The Importance of Productivity
Time is Money
Businesses want their employees to be productive
Bring in income
Produce more goods
Labour costs go down therefore more profit for business.
Importance of Skilled Labour
The more skill an employee has, the less training the employer has to invest into the employee
Skilled employee already has the training necessary to do the job and usually provide a better product.
If the employee doesn't have the required training, the business may have to provide it or hire someone else.
Positive Attitude
Happy employees are:
more satisfied with their job
more productive
quality of work is usually better
willing to do more
Unhappy employes are:
Less productive
quality of product may go down
bad attitude can spread to others
Creating a Positive Attitude in the Workplace
A positive and healthy employee is a productive employee
Health & Safety
Compensation is affected by supply and demand. Highly sought-after jobs with many prospective employees have lower pay than an in-demand job that has few employees.
Hourly Wages
Common type of payment method, usually for part-time employees.
Range from minimum wage to hundreds of $/hr
unskilled or skilled labour to skilled professional (lawyers)
Minimum wage - base hourly rate set by government $10.25/hr.
Overtime - an increased rate in pay earned when:
working more than regular work hours.
on statutory holidays.
A fixed amount of money that an employee receives on a regular basis.
Can be paid, weekly, bi-weekly, monthly, etc.
Typically expressed as a yearly amount.
Average salary of Canadian employee in 2010 is $49,553
Number of hours typically is not stated, but it is the expectation that employees complete their task.
If it requires more than 40 hours or work during holidays, no extra compensation is given.
Salary + Commission
This type of compensation is usually given to retail sales jobs
Employees earn a base salary/wage plus a small commission
A commission is an incentive that encourages employees to work harder and complete sales.
For example, an employee may earn a 3% commission on top of their base pay.
If a salesperson can make a $100 sale, they earn $3.
If an employee is able to sell $1000 of product in an hour they earn $30.
A higher commission usually means a lower base pay.
Straight Commission
Based completely on employee performance and sales
Types of jobs:
Wholesale or large industrial sales
Realtor, car salesperson
Employees have the opportunity to make a lot of money
If sales fall off or the employee is unable to work, little to no income is earned.
Incentive Bonus
A bonus is a reward for achieving some sort of performance goal.
Sales quota or target
Payout can be in the form of cash, trips, electronics, etc.
Performance-Based Pay
Sometimes called piecework
Employees are compensated for the quantity of product made.
Widely used in the garment industry
Employees can work at home and use their own equipment
Can lead to employee abuse
child labour abuse
Sweatshop work environments - low wages & unsafe work environment
Fee for Service
Typical businesses that charge a fee for service
Construction/contracting, Catering, Cleaning

These businesses estimate how much the job will cost along with the cost of materials, employee salaries and profit amount.
This amount is written down in a bid or contract
The people (or business) that hires them - their employer - knows how much to pay, what materials will be used, time to complete, etc.
The contract is signed by both parties to prevent misunderstanding.
Royalty or Licensing Fee
Both these terms refer to a payment for the use of ideas and creativity.
Textbook talks about licensing of a cartoon character on t-shirts
Can also be applied to technology
Company A licenses Company B to use a piece of their technology.
Company B has to pay $2 for each unit shipped to A.
Stock Options
The opportunity for an employee to purchase shares or stocks at a reduced price.
Incentive for employee to ensure that the company is successful - price of stock goes up, employee can make money.
Employee typically has to hold onto the shares for a set period of time.
Health & Safety
Federal & Provincial laws require businesses to provide and maintain healthy and safe work environments.
A sick or injured worker costs the business money
They are unproductive
Can take the employer to court if the employee is injured on the job.
When an employee is sick or ill it costs the business
Employee is unproductive - they cannot work
The business may have to provide sick pay
To combat this, many businesses offer wellness programs.
These program promote healthy living
Reduce absenteeism
See pg. 151 for a list of wellness programs.
Employers in Canada by law MUST maintain a safe workplace.
The Canadian Labour Code and other provincial legislation stipulate how employers can provide safe work environment.
Employees have the right to
be informed about known or foreseeable hazards.
be properly trained to use equipment.
help identify and resolve job-related problems in health and safety. i.e. carpal tunnel syndrome.
refuse dangerous work if they have reasonable cause to believe that a situation constitutes a danger.
know that dangerous and hazardous materials are properly stored and handled.
If an employee is injured on the job, a worker's compensation board pays the employee while they are recovering.
Human Resource Manager
Large companies typically have an HR Manager
Responsibilities of HR Manager:
Coordinate activities of the employees
Determine when to hire new employees
Identify required skill set
Go through the hiring process
Training for new and current employees
Handle job promotions and openings
Handle employee leaving the company
Determining the Need for a New Employee
The responsibility of the HR Manager
Employee Turnover
- the rate at which people leave or join the company.
Vacancies can occur when:
Company first opens
A new branch or opportunity opens up within the company
Someone leaves, retires or is fired
Someone is promoted into a new position
Determining the Need for a New Employee
HR Department will have records on the background of its employees.
education level, skills, training received, service length & performance evaluations
This information goes into determining whether an internal or external hire is required.
Internal hire - someone within the company meets the needs of the job vacancy
External hire - someone from outside the company needs to be hired to fill the job position.
See scenario on p. 156
Looking for the Right Employee
Where can a business find qualified candidates?
Advertisement newspaper, journal, publication, etc.
Recruit at a university or post secondary school.
Post on Human Resources Development Canada site
Workopolis or other online advertising service
Post on the company website
Use co-op/work experience program
Use a head hunting service
Employee referral
Search through recent job applicants.
Application Process and the Interview
A potential employee submits the following:
A completed application form
Cover letter expressing interest in the job
Resume listing details of the applicant
HR department receives and reviews the packages from the potential candidates.
Candidates are short-listed and then called in for an interview.
Interview team gets to meet the applicant.
May go on for several rounds of interviews.
Potential hires also have their references checked.
Job Training
Responsibility of the HR department to do orientation and training
Purpose of orientation is to introduce the new hire to:
Meet colleagues and other employees
Tour of the facilities
Introduce policies and procedures
Dress code, health and safety procedures, job expectations, safety training, software training
A lot of businesses have on-going training and work retreats.
"You're Fired!"
Before dismissal, there has to be record of derelict of duty.
Lateness, absenteeism, poor work habits, irresponsibility, etc.,
Before firing, some businesses provide a corrective interview.
During the interview, both parties agree on a plan to improve.
A summary of discussion is recorded and signed
If no improvement is demonstrated within the agreed upon time, the employee may face dismissal.
Layoffs occur when a businesses doesn't have the capital to afford its employees.
It is a way to cut back on expenses.
In a unionized environment, the order of layoffs is based on seniority.
Seniority is based on the length of service
Employees with the least length of service is laid off first.
In a non-unionized environment, the employee who is least essential to the day-to-day operations of the company are let go first.
Severance Package
Given only to employees who are let go from the company.
Not to those who decide to leave or who are fired.
Severance Pay - typically representative for the length of service given.
One weeks pay for each year of service
Company may provide outplacement counselling - help the former employee train or search for a new job.
Usually occurs when an employee voluntarily decides to withdraw from the labour market.
Typically when they have reached a certain age (55 or older; typically around 65).
Pension - a form of savings during an employees working years and a form of income during retirement.
During employment
Both the company and employee pay into this savings
During retirement
The employee is able to draw upon this savings as income to live off of.
Rights in the Workplace
Both the employees and employers have rights.
The rights of the employees are based on the United Nation's Universal Declaration of Human Rights adopted on December 10th, 1948.
Universal Declaration of Human Rights
The following articles are sometimes called the
Universal Employee Bill of Rights

Article 4. No one shall be held in slavery or servitude; slavery and the slave trade shall be prohibited in all their forms.
Universal Declaration of Human Rights
Article 23. (1) Everyone has the right to work, to free choice of employment, to just and favourable conditions of work and to protection against unemployment.
(2) Everyone, without any discrimination, has the right to equal pay for equal work.
(3) Everyone who works has the right to just and favourable remuneration ensuring for himself and his family an existence worthy of human dignity, and supplemented, if necessary, by other means of social protection.
(4) Everyone has the right to form and to join trade unions for the protection of his interests.
Universal Declaration of Human Rights
Article 24. Everyone has the right to rest and leisure, including reasonable limitation of working hours and periodic holidays with pay.

Article 25. (1) Everyone has the right to a standard of living adequate for the health and well-being of himself and of his family, including food, clothing, housing and medical care and necessary social services, and the right to security in the event of unemployment, sickness, disability, widowhood, old age or other lack of livelihood in circumstances beyond his control.
Universal Declaration of Human Rights
Article 26. (1) Everyone has the right to education. Education shall be free, at least in the elementary and fundamental stages. Elementary education shall be compulsory. Technical and professional education shall be made generally available and higher education shall be equally accessible to all on the basis of merit.
Rights of the Employee
Both provincial and federal legislation describe the employment standards for employees:
Minimum age for employment
Hours of work
Minimum wage
Overtime, holiday and vacation pay
paid public holiday
parental leave
individual and group terminations of employment
the recovery of unpaid wages
Human Rights Code
Protected Grounds:
Illegal to discriminate an employee on the grounds of:
gender, race, religion, sexual preference, physical disability, age, etc.
Harassment happens when someone (or a group of people) feel threatened or uncomfortable for who they are.
Making inappropriate comments or jokes, offensive comments, inappropriate sexual comments, etc.
Employees who are harassed can complain to the appropriate human rights body.
Rights of the Employer
Employers have the right to:
Decide what their employment needs are
require that employees have job-related qualifications and/or experience
hire, promote, and assign the most qualified person
establish standards for evaluating job performance
require that employees adhere to clearly defined job descriptions and performance critera
discipline, demote or dismiss incompetent, negligent or insubordinate employees
set employment terms and conditions
establish salary and wage scales independently or through negotiations
Organization & Managment
An organization is a method of grouping
people, finance and physical resources
A business organization is designed to acquire, store, transform and distribute goods and services to achieve a businesses' objectives.
Organizational Structures
Departmentalization - is the structure of putting into departments.
Five basic department structures:
Function: based on what each group does.
Geography: where each group is located
Product: what item is produced, processed, branded or sold
Customer: based on different types of customers.
Time: based on day or night shifts.
Organization Chart
Shows graphically how a company is organized - its structure:
Lines of authority
How the businesses is departmentalized
The relationship of one department to another
Various positions within the business
Example Organization Chart
Board of Directors
VP Production
Y. Osaka
M. Firat
President & CEO
S. Gulec
VP Research & Dev
C. DeGiusti
VP Marketing
A. Boulanger
VP, Purchasing
M. Alavakhia
VP Finance
S. Javoski
VP Distribution
A. Perez
Director, HR
D. Seward
GM, Marketing.
E Jung
Other Organizational Structures
Work Teams
A group comprised of qualified employees from different departments.
They're grouped together to and given a task or goal to complete.
Team members are both responsible to their department and to their team
Employees are given time specifically to work together with their team.
Once the work team has achieved its goal, it is disbanded.
Informal Business Structure
Departmentalization - is the structure of putting into departments.
Five basic department structures:
Function: based on what each group does.
Geography: where each group is located
Product: what item is produced, processed, branded or sold
Customer: based on different types of customers.
Time: based on day or night shifts.
How Management Functions
The roll of management is to decide what the best use of the business' resources.
There are five management functions:
Planning is the process of defining goals for a business
Short term and long term goals
How to achieve these goals
Sometimes social goals (i.e. fundraising for a charity)
Almost always economic
Short term goals:
typically defined as sales or income target (monthly, quarterly etc.)
Long term goals:
1 year, 2 year, five year, etc. plan.
Developing Strategies
Managers must understand these goals and develop strategies to achieve them.
Goal of increasing sales by 10%:
Marketing manager creates a new promotional plan
Sales manager arranges meeting with new clients or discusses new contracts with customers
Production manager arranges necessary resources and upgrades to produce more product.
Also called Leading
Two types:
Autocratic leaders
Decisions are made by the leader. Employees do not participate in the decision making process
Democratic leaders
Decisions are made by consensus. Employees the ability to contribute to the decision making process.
A good manager knows the best way to motivate each employee.
Increase pay or salary
The "corner office"
Vacation time
Other perks...
Different people are motivated in different ways
Good communication is key to a successful team.
Good direction means communicating with the team so they know what needs to get done.
urgency, corporate values, goals & plans
Failure to communicate these messages may mean the goal is not reached or done poorly
Consequence is that the task may have to be redone
Financial penalty
Reputation affected
Encouraging Participation
Decision Ownership - allowing employees within the department to:
direct and lead training
help make promotion and dismissal decisions
Stakeholders - they are the people who are affected by the decision being made.

By allowing stakeholders to have a part of the decision making process, it improves motivation and job satisfaction.
How managers increase, maintain or decrease business resources:
Number of employees
Budget amount for a department
Supplies and resources needed
If a department succeeds, it may be given access to more resources to become more productive
If a department fails to meet its goals, its resources and budgets may be cut back.
Large companies have entire departments devoted to staffing and human resources.

In a small business, the owner typically performs this roll.
Managing Resources
negotiates the supply and delivery of raw materials, equipment, supplies and goods.
Ensures that resources arrive "just in time".
Ensures that the product being produced is correct and delivered on time.
Makes sure raw materials are delivered on time, packing and storage needs are met, plant maintenance, shift scheduling, etc.
Managing Resources
Marketing & Distribution
The product being produced is being sold.
Develop sales and marketing, advertisement, promotion and publicity activities.
Focuses on sales and product distribution
Research and Development
Creates new products, services or better ways to produce the same product or service.
Feedback from the marketplace is used to improve the product through R&D
Managing Resources

Purchasingnegotiates the supply and delivery of raw materials, equipment, supplies and goods.Ensures that resources arrive "just in time".ProductionEnsures that the product being produced is correct and delivered on time.Makes sure raw materials are delivered on time, packing and storage needs are met, plant maintenance, shift scheduling, etc.
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