978-1259912191 Chapter 10 Lecture Notes

Unlock access to all the studying documents.

View Full Document

Chapter Ten: Human Resource Management

Table of Contents

Brief Chapter Outline…………………………………………………………………………………..2

Chapter Outline and Lecture notes………………………………………………………………..3

Key Terms…………………………………………………………………………………………………. 9

Suggested Text

Responses………………………………………………………………………….. 11

Class Activities and Sample Assignments…………………………………………………….14

Discussion Questions for Online/Hybrid classes…………………………………………….15

Lecture Links…………………………………………………………………………………………… 18

Lecture Link 10.1: The ADA & the New Entrepreneur…………………………………..18

Lecture Link 10.2: The Attorney Relationship at the New Small Business……….19

Lecture Link 10.3: The Entrepreneur & the EEOC……………………………………….20

Bonus Internet Exercises……………………………………………………………………………21

Bonus Internet Exercise 10.1: OSHA & the New Entrepreneur………………………21

Bonus Internet Exercise 10.2: Entrepreneurs Promote a Drug-Free Workplace. 22

Bonus Internet Exercise 10.3: Entrepreneurs & Unemployment Insurance (UI). 23

Critical Thinking Exercises…………………………………………………………………………. 24

Critical Thinking Exercise 10.1: A Society of Human Resource Managers……….24

Critical Thinking Exercise 10.2: The Entrepreneurial Interview Checklist for

Success……………………………………………………………………………………………….. 26

Critical Thinking Exercise 10.3: The Job Descriptions at the New Small Business

…………………………………………………………………………………………………………… 28

Bonus Cases……………………………………………………………………………………………. 30

Bonus Case 10.1: Performance Reviews at the Small Business…………………….30

Bonus Case 10.2: Health Care Expenses at the Small Business…………………….32

Bonus Case 10.3: A Recent Workers’ Compensation Lawsuit……………………….34

Endnotes………………………………………………………………………………………………… 35

Brief Chapter Outline

I. Learning Objectives (text page 185)

IM 10-1

written consent of McGraw-Hill Education.

Chapter Ten: Human Resource Management

Explain the elements of human resources.

Discuss the process of hiring employees.

Analyze the means for retaining employees.

Determine the pertinent aspects of employee probation and firing.

Understand Broad Coverage Regulations and Laws

Distinguish the unique aspects of human resources within a family business.

II. The Elements Human Resources (text page 187)

Learning Objective 10-1: Explain the elements of human resources.

III. The Process of Hiring Employees.(text pages 187 through 193)



Learning Objective 10-2: Discuss the process of hiring employees.

IV. The Means for Retaining Employees (text pages 193 through 197)



Learning Objective 10-3: Analyze the means for retaining employees.

V. The Pertinent Aspects of Employee Probation and Firing Employees (text page

198)



Learning Objective 10- 4: Determine the pertinent aspects of employee probation

and firing.

VI. Broad Coverage Regulations and Laws (text pages 198 through 200)



Learning Objective 10–5: Understand Broad Coverage Regulations and Laws

VII. The Unique Aspects of Human Resources Within a Family Business (text pages

200 and 201)

Learning Objective 10-6: Distinguish the unique aspects of human resources

within a family business

VIII. For Review (text page 202)

Chapter Outline and Lecture notes

1. Learning Objectives (text page 185)

Explain the elements of human resources.

Discuss the process of hiring employees.

Analyze the means for retaining employees.

Determine the pertinent aspects of employee probation and firing.

IM 10-2

written consent of McGraw-Hill Education.

Chapter Ten: Human Resource Management

Understand Broad Coverage Regulations and Laws

Distinguish the unique aspects of human resources within a family business.

2. The elements of Human Resources

Learning Objective 10-1:Explain the elements of human resources

A. Defining human resources (text page 187)

i. As defined in economics, it is the quantity and quality of

human effort directed toward producing goods and services

B. Actions required of owner

i. Hiring employees

ii. Job descriptions

iii. Job advertisements

iv. Discrimination

v. Interviews

vi. Testing

vii. Job offers

C. Employee retention

i. Compensation and benefits

ii. Wages and hours requirements

iii. Performance Reviews

D. Difficult employees

i. Probation

ii. Firing

3. The Process of Hiring Employees (text pages 187 through 193)

Learning Objective 10-2: Discuss the process of hiring employees

A. Job description

i. Document that describes the job that is to be filled

1. In writing

ii. Includes skills and capabilities

iii. Written to share job information with potential employee

B. Job advertising

i. Notify college placement offices

ii. Notify trade associations

iii. Notify employment agencies

iv. Post help wanted signs

v. Place help wanted add (expensive) in a newspaper or online

vi. Conduct job recruiting to attract high-skilled employees

IM 10-3

written consent of McGraw-Hill Education.

Chapter Ten: Human Resource Management

vii. Anything written should be concise and oriented toward basic

information needed for an applicant to evaluate the position

viii. Ask for a resume and a list of references

1. Avoid discrimination

a. In the workplace it includes hiring, dismissal, level of

pay, and promotions based on race, color, gender,

religious beliefs, or national origin of the employee.

Such actions are prohibited by federal and state laws

C. Interview

i. Information to be gotten from the application and interview

1. Name, address, telephone numbers (home, cell), e-mail

address

2. Addresses for the past three years

3. Social security number (SSN)

4. Driver’s license number and state of issue

5. Previous and related work history

6. Date available to work

7. Position for which candidate is applying

8. Referral source

9. Education and training

10.Professional organization memberships

11. Record of any conviction

a. Details of the conviction

12.Proof of citizenship

a. Proof of authorization to work in the United States

13.References

ii. Discrimination topics to be avoided

1. Age

2. Race

3. Disability

4. Gender

5. National Origin

6. Religion or creed

iii. Check references

iv. Consider background check

D. Testing

i. Included in applicant decision process

ii. Drug-free workplace

iii. Conflict of employee rights

iv. Consult an attorney to avoid employee rights issues

v. Skill testing

vi. Basic requirement of a position

vii. Personality tests

IM 10-4

written consent of McGraw-Hill Education.

Chapter Ten: Human Resource Management

E. The offer and response

i. Select candidate

ii. Extend offer

iii. Negotiations

iv. Candidate accepts offer

v. Candidate denies offer

vi. Put offers in writing after the offer is agreed by candidate

vii. Position is closed when candidate returns offer in writing

4. The Means for Retaining Employees (text pages 193 through 197)

Learning objective 10-3: Analyze the means for retaining employees

A. Compensation

i. Equity theory

1. The theory that we all judge how we are treated relative to

how we see others being treated

2. Systematic reviews

a. Consider how employees perform relative to their job

objectives

b. Plan for future employee growth through experience

and training

c. Define objectives for the next year

d. Award pay raise

3. Hourly wage

a. The amount paid per hour for work performed

4. Salary

a. A set amount of compensation for a given time period

i. Commission

1. Some percentage of sales, typically

associated with the compensation for

sales representatives

ii. Hybrid compensation systems

1. A compensation system where there is a

salary along with commission

2. Profit sharing is an example of hybrid

compensation system. The firm may set

some relatively low level of salary but

offer to share a percentage of the profits

at the end of the year or some other

period of time with the employees

3. Bonus system is similar to profit sharing

IM 10-5

written consent of McGraw-Hill Education.

Chapter Ten: Human Resource Management

a. A reward offered to employees

based on their performance

b. Bonus systems are not as well

defined as profit sharing; instead,

the level of reward is left to the

discretion of the entrepreneur

B. Legal issues with Pay

1. Fair Labor Standards Act (FLSA)

1. Establishes a minimum wage for workers

2. It standardizes the minimum wage

3. Cities may have “living wage” requirements which may

be higher than the FLSA minimum wage

4. It specifies that nonexempt employees who work over 40

hours per week are to be paid at the rate of time and half

5. It does not permit compensatory time

6. It regulates the age children can work

C. Benefits

i. Paid vacations

ii. 401(k) plan

iii. Paid holidays

iv. Medical care

v. Retirement plans

vi. Sick leave

vii. Life insurance

D Performance reviews

i. The review done by the entrepreneur of the employee’s goals and

outcomes on those goals over some given period

5. The Pertinent Aspects of Employee Probation and Firing (text page 198)

Learning Objective 10-4: Determine the pertinent aspects of employee probation

and firing.

A. Develop paper trails

i. A poor performing employee should be documented

ii. Failure to document can result in lawsuit

iii. Investigates legitimate reasons for the poor performance

iv. Allow the employee time to correct the performance issue

v. If needed contact an attorney for advice

vi. Non-compete agreements or secrecy agreements signed by an

employee when hired may prevent problems later

IM 10-6

written consent of McGraw-Hill Education.

Chapter Ten: Human Resource Management

6. Broad Coverage Regulations and Laws (text pages 198 through 201)

Learning Objective 10-5: Understand Broad Coverage Regulations and Laws

A. Worker’s Compensation

i. Laws designed so that employees who are disabled or injured while

on the job are provided with some type of compensation

B. The Occupational Safety and Health Administration (OSHA)

i. Charged with protecting the health of workers

C. Unemployment Compensation

i. Financial assistance for some period of time to those people who

lose their jobs through no fault of their own; provided in every state

by law

D. The Americans with Disabilities Act (ADA)

i. Covers firms with 15 employees or more

ii. Requires that each and every business provide unfettered access

to all disabled people

iii. Requires ramps, elevators and Braille signs as appropriate

iv. Requires special accommodations for employees who need

physical adaptations to work at the firm

v. Cities or States may have requirements beyond ADA requirements

7. The Unique Aspects of Human Resources Within a Family Business (text pages

200 and 201)



Learning objective 10-6: Distinguish the unique aspects of human resources

within a family business

a. Human resource issues are still important

b. Hiring is not done the same as with traditional hiring practices

c. Such hiring does not eliminate discrimination issues

d. Discipline creates ruptures in the family structure

e. Succession planning can be tricky in a family business

a. Choose the successor

b. Prepare the successor

c. Allow a son or daughter to handle the business decisions before

considering retirement

d. Sibling rivalry may cause problems

8. For Review (text page 202)

IM 10-7

written consent of McGraw-Hill Education.