****************** part 4: how to organize, manage, and operate the business 10.how to obtain and...

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Part 4: How to Organize,Part 4: How to Organize,Manage, and Operate the BusinessManage, and Operate the Business

10.10. How to Obtain and Manage Human How to Obtain and Manage Human Resources and Diversity in Small Resources and Diversity in Small CompaniesCompanies

11.11. How to Maintain Relationships with Your How to Maintain Relationships with Your Employees and Their RepresentativesEmployees and Their Representatives

12.12. Obtain and Laying Out Operating Obtain and Laying Out Operating FacilitiesFacilities

13.13. Purchasing, Inventory, and Quality Purchasing, Inventory, and Quality ControlControl

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Chapter 10Chapter 10How to Obtain and How to Obtain and

Manage Human Manage Human Resources and Resources and

Diversity in Small Diversity in Small CompaniesCompanies

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

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How To Obtain AndManage Human Resources And

Diversity In Small Companies

Planning Human Resource NeedsPlanning Human Resource NeedsSources & Methods For RecruitingSources & Methods For RecruitingEmployee DevelopmentEmployee DevelopmentManagers vs. NonmanagersManagers vs. NonmanagersLaws Of Recruiting, Selection, Laws Of Recruiting, Selection, & Development & DevelopmentCompensation & BenefitsCompensation & BenefitsEmployee Health & SafetyEmployee Health & Safety

Ch

apte

r

9

10 - 3

Keith Brofsky/Getty Images

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10 - 4McGraw-Hill/Irwin

StaffingStaffing“…“…planning for, planning for,

recruiting, selecting, recruiting, selecting, and training and and training and

developing developing employees, as well as employees, as well as compensating them compensating them

and providing for their and providing for their health and safety.”health and safety.”

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10 - 5

Median Age- U.S.Median Age- U.S.

0

5

10

15

20

25

30

35

40

Source. U,S Census Bureau, www. Census.gov

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Planning HR NeedsPlanning HR NeedsJob DescriptionJob Description

oDutiesDutiesoResponsibilitiesResponsibilitiesoWorking ConditionsWorking ConditionsoRelationshipsRelationships

Job Specification- Job Specification- QualificationsQualificationsoMentalMentaloPhysicalPhysicaloOtherOther

Jacobs Stock Photography/Getty Images

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10 - 7

Components: JobComponents: JobDescription & SpecificationDescription & Specification

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10 - 8

CharacteristicsCharacteristicsof Job Seekersof Job Seekers

0% 20% 40% 60% 80% 100%

Willing to ChangeIndustries

Accept Low Salary

Accept Lesser JobTitle

Willing to Relocate

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10 - 9

Sources Of EmployeesSources Of Employees

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10 - 10

Tips To Aid RecruitingTips To Aid Recruiting

1)1)Current Employees/FeeCurrent Employees/Fee

2)2)SeniorsSeniors

3)3)InternshipsInternships

4)4)Church BulletinChurch Bulletin

5)5)Specific Job-Related Specific Job-Related TalentsTalents

Royalty-Free/CORBIS

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10 - 11

Methods Of RecruitingMethods Of Recruiting

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10 - 12

Techniques For SelectionTechniques For Selection

Preliminary Screening/InterviewPreliminary Screening/InterviewApplication/Resume’Application/Resume’TestingTestingIn-Depth InterviewIn-Depth InterviewReferencesReferencesPhysical ExamPhysical ExamJudgmentJudgmentOrientationOrientation

Keith Brofsky/Getty Images

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TestingTestingValidValidRelates To Relates To

PerformancePerformanceTypesTypes

oIntelligenceIntelligence

oAptitudeAptitude

oProficiencyProficiency Jack Hollingsworth/Getty Images

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Interview Topics To AvoidInterview Topics To Avoid

ChildrenChildrenAgeAgeDisabilitiesDisabilitiesPhysical Physical

CharacteristicsCharacteristicsCitizenshipCitizenship

NameName

LawsuitsLawsuits

Arrest RecordArrest Record

SmokingSmoking

AIDS/HIVAIDS/HIV

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Strategies At InterviewStrategies At Interview

1)1) Stick To Pre-Determined Stick To Pre-Determined QuestionsQuestions

2)2) Do Not Make An Do Not Make An Emotional Hiring Emotional Hiring DecisionDecision

3)3) Dig DeepDig Deep4)4) Be Very Clear About Job Be Very Clear About Job

Performance ExpectationsPerformance Expectations

Ryan McVay/Getty Images

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Training &Training &Developing EmployeesDeveloping Employees

Business Effectiveness Business Effectiveness Depends on EmployeesDepends on Employees

Inherent Abilities of Inherent Abilities of EmployeesEmployees

Development Through:Development Through: TrainingTraining EducationEducation ExperienceExperience

MotivationMotivation

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Results of Effective TrainingResults of Effective Training

+Increased ProductivityIncreased Productivity

+Reduced TurnoverReduced Turnover

+Increased Employee Increased Employee EarningsEarnings

+Decreased CostsDecreased Costs

+Less Supervision NeededLess Supervision Needed

+Improved Employee Improved Employee SatisfactionSatisfaction

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Types Of TrainingTypes Of Training

On-The-JobOn-The-JobApprenticeshipApprenticeshipInternshipInternshipCross-TrainingCross-TrainingE-TrainingE-TrainingOutside HelpOutside Help

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On-The-Job Training StepsOn-The-Job Training Steps

• Tell WhatTell What

• Tell HowTell How

• Show HowShow How

• Let Them Under Let Them Under GuidanceGuidance

• Right/Wrong/CorrectionRight/Wrong/Correction

• RepeatRepeat

Ryan McVay/Getty Images

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On-The-Job TrainingOn-The-Job Training

AdvantagesAdvantagesLow CostLow CostProduction Production

ContinuesContinuesNo No

TransitionTransitionEducates & Educates &

MotivatesMotivates

DisadvantagesDisadvantages

Excessive WasteExcessive Waste

Poor Poor EnvironmentEnvironment

Owner/Manager Owner/Manager May Not Be Best May Not Be Best TrainerTrainer

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Developing ManagersDeveloping Managers

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10 - 22

Equal OpportunityEqual Opportunity& Affirmative Action& Affirmative Action

LawsLaws EnactedEnacted

Title VII, Civil Rights ActTitle VII, Civil Rights Act 19641964

Executive Order 11246Executive Order 11246 19651965Age Discrimination In Age Discrimination In

EmploymentEmployment 19671967

Vocational RehabilitationVocational Rehabilitation 19731973Vietnam-Era Veterans Vietnam-Era Veterans

ReadjustmentReadjustment 19741974

Americans With DisabilitiesAmericans With Disabilities 19901990

Civil Rights ActCivil Rights Act 19911991

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EEOC RegulationsEEOC Regulations

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10 - 24

Compensating EmployeesCompensating EmployeesPaycheck for

Dept. of Treasurer

John Doe

Paycheck for

D ate

Dept. of T

reasurer

Jane Doe

Da te Legal InfluencesLegal InfluencesPaycheck for

Dept. of Treasurer

John Doe

Paycheck for

D ate

Dept. of T

reasurer

Jane Doe

Da te Setting Rates Of PaySetting Rates Of PayPaycheck for

Dept. of Treasurer

John Doe

Paycheck for

D ate

Dept. of T

reasurer

Jane Doe

Da te MotivationMotivation Merit IncreasesMerit Increases Incentive PaymentsIncentive Payments Profit SharingProfit Sharing CommissionsCommissions BonusesBonuses Push Money/SpiffPush Money/Spiff

Steve Cole/Getty Images

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States WithStates WithHigher Minimum WagesHigher Minimum Wages

Steve Cole/Getty Images

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Required Employee BenefitsRequired Employee Benefits

Social Security/MedicareSocial Security/MedicareoSocial Security – 6.2%Social Security – 6.2%

oMedicare – 1.45%Medicare – 1.45%

Unemployment Unemployment InsuranceInsurance

Workers’ CompensationWorkers’ CompensationFamily/Medical LeaveFamily/Medical Leave

C. Sherburne/PhotoLink/Getty Images

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VoluntaryVoluntaryEmployee BenefitsEmployee Benefits

Health/Accident InsuranceHealth/Accident InsuranceLife/Disability InsuranceLife/Disability InsuranceSick LeaveSick LeaveIncome MaintenanceIncome MaintenancePay For Time OffPay For Time OffEmployee Services & OtherEmployee Services & OtherFlexible BenefitsFlexible Benefits Royalty-Free/CORBIS

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Pension/Retirement PlansPension/Retirement Plans

Defined-ContributionDefined-Contribution

Defined-BenefitDefined-Benefit

401(k)401(k)

Ryan McVay/Getty Images

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FactorsFactorsAffecting Health/SafetyAffecting Health/Safety

IndustryIndustryOccupationOccupationHuman VariablesHuman Variables

Job SatisfactionJob SatisfactionPersonal CharacteristicsPersonal CharacteristicsManagement AttitudeManagement Attitude

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OccupationalOccupationalSafety & HealthSafety & Health

Act- 1993Act- 1993

Regulations- 1996Regulations- 1996

Employee RightsEmployee Rights

Employer Obligations & Employer Obligations & RightsRights

EnforcementEnforcement

Environmental Protection Environmental Protection Agency- Created In 1970Agency- Created In 1970