Assignment 226
Delp10
Chap010.pptChapter Ten
How to Obtain and Manage
Human Resources and Diversity
in Small Companies
Copyright © 2018 by McGraw-Hill Education. All rights reserved.
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Learning Objectives
Explain how small business managers plan human resource needs and develop sources from which to recruit employees.
Name some methods used for recruiting human resources, and describe the steps in the employee selection process.
Explain the importance of employee development, and discuss some development methods.
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Learning Objectives (cont.)
Tell how selection of managers differs from selection of nonmanagerial employees, and describe some methods of manager development.
Discuss the laws that affect recruiting, selection, and development.
Describe how to compensate employees with money and employee benefits.
List some factors influencing employee health and safety, and tell how to safeguard employees in small firms.
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Staffing
Staffing
Involves planning for, recruiting, selecting, and training and developing employees, as well as compensating them and providing for their health and safety.
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Planning for Human
Resource Needs
Small businesses must:
Determine which human resources are needed.
Develop sources from which to recruit future employees, especially people from diverse ethnic groups.
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Determining Types of
Employees Needed
Job specifications
Detailed written statements of work assignments and the qualifications needed to do the job acceptably.
They are statements of the mental, physical and other qualifications of a person to do the job.
Job description
Lists the duties and responsibilities of a given job.
Includes working conditions as well as relationships between it and other jobs in the organization.
Should always be gone over with by employer and employee and signed by both, to prevent misunderstandings about expectations.
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Components of a Simplified Job
Description and Job Specification
Figure 10.1
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Where to Find Needed Employees
Figure 10.2
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Internal Sources
Upgrading
Involves retraining workers so they can do increasingly complex work.
Transferring
Moving an employee from one job to another, without necessarily changing title or pay.
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Internal Sources
Promoting
Moving an employee to a higher position, usually with increased responsibilities, title, and pay.
Increases morale.
Improves employee
motivation.
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External Sources
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External Sources
Leased manpower
Refers to employees obtained from an outside firm that specializes in performing a particular service.
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Methods of Recruiting Employees
Recruitment is reaching out to attract applicants from which to choose one to fill a job vacancy.
Ask current employees and offer finding fees.
Search for seniors- people over 55 have proven to be dependable employees.
Consider internships-most universities an help there.
Try local church bulletins.
Ask the right questions-be specific about job-related talents.
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Methods Used to
Recruit Employees
Figure 10.3
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Methods Used to
Recruit Employees
Networking is the process of establishing and maintaining contacts with key persons in one’s own or another organization as informal development or promotion systems.
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Methods of Selecting the Right Person for the Job
Selection
Involves choosing the applicant who has the qualifications to perform the job.
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Selection Procedure
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General Topics to Avoid When Interviewing Applicants
Table 10.1
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Preemployment Tests
Validity
Making sure that the test given actually relates or corresponds to job performance.
Polygraph
An instrument for simultaneously recording variations in several different physiological variables.
Congress passed a law barring private employers from using polygraph
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Interviewing Applicants in Depth
In-depth, preemployment, or diagnostic interviews
detailed, probing, and penetrating interviews seeking to determine the applicant’s character and other aspects of personality
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Improving the Interview Process
Do not ask the obvious questions.
Do not ask legally indefensible questions.
Do ask the right questions, but be sure to know how to evaluate the answers.
Do try not to focus too much attention on the candidate’s self-evaluation.
Do not be overly influenced by first impressions.
Do not miss important clues.
Do not rely too much on past credentials.
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Training and Developing Employees
Training results include:
Increased productivity.
Reduced turnover.
Increased earnings for employees.
Decreased costs of materials and equipment due to errors.
Less supervision required.
Improved employee satisfaction.
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Ways of Training
Nonmanagerial Employees
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Ways of Training
Nonmanagerial Employees
On-the-job training (OJT) has the worker actually performing the work, under the supervision of a competent trainer.
Telling workers what needs to be done.
Telling them how to do the job.
Showing them how to do the job.
Letting them do the job under the trainer’s guidance.
Telling-not showing-them what they did right, what they did wrong, and how to correct the wrong activity.
Repeating the process until the learners have mastered the job.
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Ways of Training
Nonmanagerial Employees
Cross-training
Involves workers learning many job skills so they are more versatile.
Apprenticeship Training blends OJT with learning of theory in the classroom.
Internship Theory combines OJT with learning at a cooperating school or college.
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Ways of Training
Nonmanagerial Employees
E-training
Involves computer interaction with either specific software packages or specific online sites for employee training.
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Methods Used to
Develop Managers
Figure 10.5
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Laws Providing for Equal Employment Opportunity
Americans with Disabilities Act (ADA)
Requires the removal of many social and physical barriers to employing the disabled.
It covers disabilities such as cancer, blindness, arthritis, speech and hearing impairment, learning disabilities, mental illness, and also protects employees infected with the HIV virus.
Specifically excludes sexual behavior disorders, gambling, kleptomania, and others.
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Enforcing EEO Laws
Equal Employment Opportunity Commission (EEOC)
The federal agency primarily responsible for enforcing EEO laws.
Affirmative action programs (AAPs)
Provide guidelines to help firms eliminate discrimination against women and minorities.
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Principal EEOC Regulations
Figure 10.6
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Using Money to Motivate
Merit increases
Based on the employee’s ability and performance.
Incentive wage
The extra compensation paid for all production over a specified standard amount.
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Using Money to Motivate
Commission
Incentive compensation directly related to the sales or profits achieved by a salesperson.
Bonus
A reward—not specified in advance— given to employees for special efforts and accomplishments.
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Using Money to Motivate
Push money (PM)
Commission paid to a salesperson to push a specific item or line of goods
Also called spiff.
Profit sharing
An arrangement—announced in advance—whereby employees receive a prescribed share of the company’s profits.
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Using Money to Motivate
Employee stock ownership plan (ESOP)
A form of profit sharing, borrows money, purchases some of the company’s stock, and allocates it to the employees on the basis of salaries and/or longevity.
Provide company a source of needed capital, boost the company’s cash flow, raise employee morale, and productivity, and provide a very beneficial new employee benefit.
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Providing Employee Benefits
Employee benefits (fringe benefits)
The rewards and services provided to workers in addition to their regular earnings.
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Some of the Most Popular Employee Benefits
Figure 10.7
Note: ACA Act of 2010 requires employers to provide
Health Care Insurance.
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Legally Required Benefits
Health Insurance required By Affordable Care Act of 2010.
Social Security
Federal program that provides support for the retired, widowed, disabled, and their dependents
Unemployment insurance
Provides some financial support to employees laid off for reasons beyond their control.
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Legally Required Benefits
Workers’ compensation
Involves payments made to employees for losses from industrial accidents and occupational diseases.
Family and Medical Leave Act
Requires employers with 50 or more employees to provide up to 12 weeks of unpaid leave for births or adoptions, and to care for sick children, spouses, or parents.
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Some Other Popular Benefits
Defined-contribution plan
Pension plan that establishes the basis on which an employer will contribute to the pension fund.
Defined-benefit plan
Pension plan whereby the amount an employee is to receive at retirement is specifically set forth.
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Some Other Popular Benefits
401(k) retirement plans
Permit workers to place up to a certain amount of their wages each year in tax-deferred retirement savings plans.
Cafeteria-style benefit plan (Flexcomp)
Allows the employer to provide all employees with the legally required benefits, plus an extra dollar amount that each employee can choose how to use.
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Factors Influencing Workers’ Health and Safety
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Type of Occupation
Repetitive stress injuries (RSIs), or cumulative trauma disorders (CTDs)
Muscular or skeletal injuries to the hand, wrist, or other areas that bear the brunt of repeated motions.
Most common is carpal tunnel syndrome, affecting wrist. May need braces, surgery, and long-time healing.
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Prevention of Injury
Set your company up in the beginning:
Provide training, posters, and reminders of how to lift (with the legs), stand, sit and how to avoid injury.
Put mats where employees stand for long periods of time.
Provide rolling racks for clothing moves. (Employees have a tendency to hold clothes by the hangers in the palm of their hands, directly causing carpal.)
Place computers at eye level, with ergonomic keyboards.
Provide work gloves, braces, aprons, where needed.
Make sure there are no counters to stoop under, or unsafe places in your business.
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The Role of the Occupational Safety and Health Act
Occupational Safety and Health Administration (OSHA)
Establishes specific safety standards to ensure, to the extent feasible, the safety and health of workers.
OSHA provides booklets on safety, injury prevention and more.
