CHAPTER 13 MANAGING HUMAN RESOURCES IMPORTANCE OF HUMAN

CHAPTER 13 MANAGING HUMAN RESOURCES

IMPORTANCE OF HUMAN RESOURCES • HUMAN RESOURCES ARE THE PEOPLE WHO WORK FOR A BUSINESS • EMPLOYEES, ESPECIALLY IN A SMALL BUSINESS ARE VERY IMPORTANT FOR THE SUCCESS OF THE BUSINESS

HUMAN RESOURCE NEEDS • OWNERS MUST BE SKILLED AT HUMAN RESOURCE MANGAGEMENT • ENSURE THAT NEEDED EMPLOYEES ARE AVAILABLE, PRODUCTIVE, PAID AND SATISFIED WITH THEIR WORK

CATEGORIZING HUMAN RESOURCES • PERMANENT EMPLOYEE--ONE TO WHOM COMPANY MAKES LONG-TERM COMMITMENT • TEMPORARY EMPLOYEE--ONE HIRED FOR A SPECIFIC TIME OR ASSIGNMENT • FULL-TIME— 30 TO 40 HOURS; OR MORE

DETERMINE EMPLOYEE QUALIFICATIONS • FIRST STUDY THE WORK THAT NEEDS T BE COMPLETED • GOAL IS TO HIRE PEOPLE WITH THE SKILLS THAT WILL BENEFIT THE COMPANY • MUST LOOK AT THE CURRENT WORK THAT NEEDS TO BE DONE; AND NEW ACTIVITIES THAT MAY BE NEEDED IN THE FUTURE

LOCATING NEW EMPLOYEES • MAY REQUIRE A LOT OF TIME AND MONEY • YOUNG PEOPLE AND OLDER PEOPLE ARE FREQUENTLY HIRED BY SMALL BUSINESSES AS PART-TIME EMPLOYEES • ALSO MAY FIND POTENTIAL EMPLOYEES THAT WANT GREATER VARIETY OR MORE DECISION MAKING RESPONSIBILITY

SOURCES OF APPLICANTS FOR SMALL BUSINESSES • BUSINESS TEACHERS • HIGH SCHOOL AND COLLEGE PLACEMENT OFFICES • RECOMMENDATIONS OF CURRENT EMPLOYEES • CLASSIFIED ADS • CLUBS AND SOCIAL ORGANIZATIONS • CUSTOMERS OF SMALL BUSINESSES

HIRING A NEW EMPLOYEE • LESS FORMAL THAN LARGE COMPANIES • CHOOSING THE RIGHT PEOPLE: BUSINESS AND TECHNICAL SKILLS, COMMUNICATION AND INTERPERSONAL SKILLS, ATTITUDE TOWARD WORK AND CUSTOMERS, WORK EXPERIENCE

COMPENSATION AND BENEFITS • COMPENSATION IS THE AMOUNT OF MONEY PAID TO AN EMPLOYEE FOR WORK PERFORMED • SALARY (PAID SPECIFIC AMOUNT PERIOD) AND WAGES (PAID FOR EACH HOUR WORKED) • FINANCIAL INCENTIVES INCLUDE COMMISION, PIECE RATE, AND PROFIT SHARING

FRINGE BENEFITS • COMPENSATION FOR OVERTIME • INSURANCE PLANS FOR HEALTH, DIABILITY, DENTAL • VACATION TIME • FLEXIBLE WORK SCHEDULES • SUPPORTIVE WORK ENVIRONMENT • GREATER RESPONSIBILITY AND INVOLVEMENT IN DECISION MAKING

TRAINING AND DEVELOPMENT • U. S. EMPLOYEES ON AVERAGE RECEIVE LESS THAN 2 DAYS OF TRAINGING PER YEAR • IN SMALL COMPANIES VETERAN EMPLOYEES “COACH” NEW EMPLOYEES • TRAINERS CAN BE HIRED OR CLASSES TAKEN AT OUTSIDE SOURCES • VENDORS OFFER TRAINING FOR EQUIPMENT PURCHASED