Business Education: Basics of Human Resource Management

Staffing Process

Planning Stage
It is important for human resource personnel to properly plan the staffing process. First, they need to perform human resources audits. This is the process in which all the functions, policies, and characteristics of a company's human resources department are examined to look for problems, find best practices, and increase efficacy and efficiency. It is also done to make sure practices properly protect the company legally and effectively. The company will then perform a job analysis to look at a job to understand all of its functions and attributes as well as those needed of the employee who will perform the job. Next, human resource employees can create a job description with specifications on what needs to be done and who could do it. They can then start to look for the employee. Sometimes they look inwards. Succession planning is the process of looking at existing employees and planning and preparing them to move up in the company to leadership positions. It can make things move more smoothly when the company grows or a key person leaves.

Staffing Procedures
There are a number of staffing procedures companies must perform. First, they must recruit potential employees. This can be done in a number of ways. They may send out job advertisements or contact a recruiting agency. They can go to job fairs. Once they have an employee, the company must train him (or her). They must have a good training program that prepares him to do his job satisfactorily. The company must also evaluate its employees. Many companies formally evaluate employees on an annual basis, but in reality, employees are constantly evaluated for performance. The company can help employees to improve themselves. Evaluations can be used as a basis for raises. A. times, employees need to be terminated. This can be because of a company situation, or due to the fault of the employee. Procedures should be put in place so this is as smooth as possible for both the employee and the company.
With the right procedures in place, the company will run more efficiently.

Addressing Diversity in the Workplace
It is important for businesses to embrace and promote diversity.
People from different backgrounds have different ideas and can contribute in many positive ways. Companies should make sure that there is diversity at their office and no unfair hiring practices. Many companies make a concerted effort to hire people from all different backgrounds. In the office, it is vital to promote an atmosphere of acceptance and tolerance. There should be a zero-tolerance policy for discrimination of any type. This should be communicated to employees regularly. Avenues should be provided to report any problems. With diligence, every workplace can celebrate and enjoy the benefits of diversity.

Cross-Training
Cross-training is when employees are trained to perform functions outside of the typical functions of their job. For instance, someone who works in the copywriting department of a firm might spend a little time in the graphic design department. There are various advantages to cross-training.

First, if an employee is absent, someone else may be able to take over without a problem, which ensures that the job functions are completed even when someone is absent. It can also help a person better do his or her job. For instance, the copywriter who learns about graphic design might get a better idea of how her copy is going to look as a whole. Employees might also be able to communicate better with other departments when they understand more of what they are doing. Additionally, it can promote teamwork and help motivate employees because it helps them to better understand the company. Employees who are cross-trained are easier to promote because they already understand multiple parts of the company and the organization as a whole, which is an advantage for both the company and employee.

Maslow's Hierarchy of Needs
In his work on human motivation, Abraham Maslow created Maslow's hierarchy of needs, a five-tiered approach to needs and motivation.

The pyramid-shaped hierarchy places basic needs at the bottom, which must be attained before higher levels are reached. The desire for these needs will increase the longer they are denied. This level of the pyramid encompasses physiological needs. These are what a human needs to survive such as food, water, air, and sleep.

The need for security comes next. These include important needs such as the desire for a safe home, medical care, and a secure job.

Once these are achieved, a person moves on to social needs. People want love, affection, and belonging though friends, social involvement, and romance.

The next tier is esteem needs. These make a person feel like they are worthwhile. People look for a sense of accomplishment and recognition from others. Once a person has achieved these four basic needs, they can progress to the growth need, the top tier of self-actualization

. This is where people have enjoyed personal growth and are reaching their potential. They do not worry as much about others' opinions and instead focus on their own growth.


Collective Bargaining
Collective bargaining occurs when a company's management engages in talks with representatives of a workforce (often a trade union). They discuss numerous aspects of the business and its labor including working conditions, pay, hours, benefits, and more. It is advantageous to employees because they can have more bargaining power and more of a say when they band together. It is advantageous for the company because they just negotiate with one group and can get everything arranged and set without needing to go through the same process with every single employee. It avoids many future problems and arguments. Collective bargaining is commonly seen in many different industries and fields.

Conflict Resolution Strategies
When conflict occurs in the workplace, efficiency and efficacy can be impacted, thus it is important to employ conflict resolution strategies. There are numerous strategies a company can utilize. First, the company should address the situation right away. Small conflicts can grow into large ones with time. The manager should talk to the parties separately to get their side of the story. Sometimes the conflict is more of a misunderstanding than anything, and it can be simply solved by understanding the two points of view. The manager should understand what each person wants and see if there is a way to compromise and make everyone happy. They can try to mediate between the two people, allowing each party to speak. This meeting should be civil, calm, and constructive. Managers should try to come up with a solution that is beneficial for everyone. If necessary, a follow-up meeting should occur.

Effects of Group Dynamics on Individual Behavior
People can behave differently when in a group, and how groups act is an area of study called group dynamics. It is important for managers to understand these forces so they can promote positive behavior. Groupthink is a negative behavior that occurs when the people in a group want harmony so much that they minimize opposing viewpoints. They make a decision without considering all of the alternatives because the people do not want conflict.
People will typically feel loyalty to certain others that they identify with or respect. Also, they may have the mistaken impression that others agree it can't be wrong, even if many are harboring their own doubts. It is important to avoid this. Sometimes there can be conflict in a group and this can prevent the group from making decisions. Groups can also be good, especially if there is group cohesion, where people like and respect each other. If people are encouraged to speak their minds, then new opinions can emerge and the group can make the best decision possible.

Organizational Culture and Subculture Within the Workplace
Corporate culture encompasses many facets, including values, traditions, and customs. For instance, there may be a formal culture in which people dress formally and address each other in a formal manner. There might be a very polite culture in which people try to be very kind to each other. Management plays a big part in making the culture, which can have a large effect on the work that gets done. Within each culture, there are subcultures that may be very unique. For instance, the computer department in a firm may have a different subculture than the rest of the company, formed by their shared values, interests, etc. The various subcultures can affect the organization's culture as a whole. A positive culture can have a positive effect on the company.

Strategies to Promote Teamwork
Employees must work together even with differing and (at times) conflicting personalities. There are different measures employers can take to promote teamwork. One method is to incorporate team-building exercising. These might involve games or fun activities. There are companies that perform team-building sessions for companies. They can help employees get to know each other better and learn how to work together. There should be rules for teams to promote respect. For instance, employees should never insult others at the office. Employers should make sure employees adhere to the rules. If there is one person who is a problem, then management should talk to that person to address the situation. Recognition of teams is another way to promote teamwork. A company can recognize groups that work well together and accomplish their goals. The team members should have clear roles. This can help stop disagreements from a misunderstanding of roles and responsibilities.
With strong teamwork comes better efficiency and productivity.

Influences on Employees' Morale and Motivation
First, employees should be fairly compensated. Employees who are underpaid may feel cheated and not motivated. Likewise, if a person is overworked, he or she will feel less motivated at the job. Jobs that allow the workers some flexibility can promote motivation. Also, workers who feel appreciated and valued have higher morale and motivation. Companies can accomplish this by praising employees or having recognition programs such as an employee-of-the-month program. Workers also like to have some say or responsibility in their work rather than just being told what to do. Workers will feel more motivated and have higher morale in a positive culture where people are respectful of each other. Working conditions affect employee motivation; employees will not feel very motivated if they are in a hot room crowded with 10 other people. The ability of the boss to lead well and create a good atmosphere also affects employee attitudes. Companies should work hard to control these factors to promote high morale and motivation.

Promoting Job Satisfaction Among Employees
If possible, employers can increase satisfaction by being flexible in employee schedules. When workers do not feel overworked, they are happier. Also, workers like to feel satisfied at their job—delegating some responsibility and letting them contribute instead of dictating every move can promote job satisfaction. Employers should be respectful of employees and provide a professional culture. Employees do not want to be talked down to or treated as if they are inferior. Employers can show that they care about employees with something as simple as a manager recognizing when an employee is going through a difficult time, or offering a reward for a success. Employees like to be recognized for their hard work. Allowing employees to grow and feel like they are contributing is important. People will also be more satisfied if there is a place they can go with their complaints. It is worthwhile for a company to spend the time, effort, and money to promote job satisfaction. With higher satisfaction comes increased productivity.

Pertinent Factors When Determining Compensation
First, the company should consider the experience the employee possesses. An individual with 10 years of experience is generally more valuable than an employee directly out of college; he or she will expect and deserve higher compensation. The years the employee has been with the company also affects compensation. Many companies give a raise every year to reflect cost of living, merit, or both. Skills should also be considered. An employee with better or rarer skills should be compensated for them. The education of the employee matters as well. Generally, the higher the degree, the greater the compensation. Companies may have a salary range for the position based upon the wages paid for similar people in similar companies. This will depend on location and cost of living. Some companies pay a little more to attract higher quality employees or a little less to save money. Also, the company's financial state might affect pay. A company that is doing well will have more cash to spread around while one that is having difficulty might be more frugal. The other types of benefits offered will also affect pay.

Common Benefits Employees Receive
Employees receive many benefits in addition to financial compensation. Most full-time employees receive some type of paid time off. This may include sick, vacation, and personal days. Often, this number increases depending on the length of time the employee has been with the company.
Companies also typically offer time off for holidays such as Thanksgiving and Christmas. The company may offer health insurance plans and even contribute to the premiums. Some employers also offer vision benefits, dental plans, and life insurance plans. Companies also often offer retirement benefits. It might be in the form of a pension, 401(k) plan, or an employee stock plan. The company may contribute to these as well. These benefits can be worth a great deal to an employee.

Retirement Plans
There are different types of retirement plans for which an employee may be eligible. A pension provides a fixed sum on a regular basis to an employee after retirement. This is often given to people who worked in public office or military service. Some employees are also eligible for an employee stock ownership plan (ESOP). In this type of retirement plan, the company puts stock or money for stock into an account on behalf of the employee. This may have to vest over time. The employee does not control the stock directly until he or she leaves the firm, and then it is distributed. Many companies offer 401(k) plans. These are tax-advantageous plans that allow people to defer their income taxes, both in earnings and contributions. A lot of employers will match a percentage of the contributions of the employee. A person can also get an individual retirement account that provides tax advantages.

Managing Employee Paid Time Off
Employers give employees paid time off in the form of vacation, sick time, and holidays. Companies may manage these by giving a certain amount of leave for each year of service, an amount that may increase when the person reaches a milestone such as five years. They will often do it as an accrual process, with each pay period showing how much the employee has accrued in time. Companies decide which holidays to give off to employees. Most offer New Years, Thanksgiving Day, Christmas, Independence Day, Labor Day, and Memorial Day, but others also offer days like Veteran's Day and Martin Luther King, Jr. Day. Some companies have decided to combine sick, personal, and vacation time so people can use the time as they wish. People will typically ask for the time off from their managers or the human resources department.
Some companies have a computerized system for this, which makes it easier to manage.

Workers' Compensation
Workers' compensation is insurance that companies pay for to protect themselves and their employees. It covers medical expenses and partial salary losses to employees who are hurt while on the job. It does not matter if the person is at fault (i.e., if the person tripped over his own feet), he would still be eligible (although not necessarily if it is intentional or due to drugs or alcohol). The injury must occur while the person is working. Employers pay all costs of the program. There may also be payment for economic loss. In the case of an employee killed while on the job, money may be paid to dependents.

Unemployment Insurance
Unemployment insurance provides benefits for workers who lose their jobs without fault of their own. These programs are usually run by the state and are typically funded by employers through taxes. It does not typically cover the entire salary, but instead a portion of it for a specific amount of time. This limit can be extended at times, especially when the economy is particularly bad. A number of factors determine eligibility into the program. The person must not have done something to lose his job. For example, a person will not get unemployment if he is fired for showing up late to work repeatedly. Also, many states require that the individual search for a job while receiving benefits. He might not be eligible if he is receiving other income. The employee must have been at the job for a certain amount of time before being laid off. It does not count for temporary employees or those who voluntarily quit. The amount is based on what the employee was earning.

Laws and Acts Preventing Discrimination
A number of laws have been created to prevent and punish discrimination. The Americans with Disabilities Act (ADA) protects those with physical and mental disabilities from discrimination, as well as provides many other protections. Those with disabilities must be reasonably accommodated in a number of areas. For instance, someone can't be fired for having a disability. The Equal Employment Opportunity Commission (EEOC) forbids discrimination against an employee or job applicant due to color, race, gender, religion, age, disability, national origin, or genetic information. Companies must adhere to this in all practices, including hiring, training, pay, termination, benefits, promotions, and harassment. The Age Discrimination in Employment Act (ADEA) is similar, but forbids discrimination based on a person's age.
Strict penalties could be enforced for any parties violating the above laws and acts.

FMLA
The Family and Medical Leave Act (FMLA) allows employees who are eligible to take up to 12 weeks of unpaid leave while having their job and group health insurance protected for one of the following reasons:

1.  To care for a newborn or child under one year of age.

2.   To care for an adopted or foster child with the employee for one year or less.

3.  To provide support to a spouse, parent, or child with a serious medical issue.

4.  To deal with the employee's own health condition that does not allow him or her to work.

5.  To deal with an eligible exigency due to a parent's, child's, or spouse's position as a covered military member on covered active duty.
If the employee is taking time off to care for an injured or ill covered military member (parent, child, spouse, next of kin) then the eligible leave is extended to 26 weeks.

FICA
The Federal Insurance Contributions Act (FICA) is a law in the United States that requires money be deducted from income to fund
Medicare and social security. The social security portion has a maximum while the Medicare part does not. How much is deducted is dependent on the person's income. It is 12.4 percent for social security and 2.9 percent for Medicare.
Those who work for someone else will only have to pay for half the FICA amount while their employer will pay the other half. Self-employed individuals pay it all, but can deduct half from their taxes as an expense of the business. There is an additional 0.9 percent Medicare tax for those making over $200,000 annually.

COBRA
The Consolidated Omnibus Budget Reconciliation Act (COBRA) is an act that allows employees and their spouses, ex-spouses, and dependent children to continue with group health coverage when it would have been otherwise terminated. Various events can trigger this continuing coverage, including the employee losing his job (without major misconduct), a reduction in hours that would result in losing the benefits, the employee's death, divorce or legal separation, a child becoming no longer dependent, and new eligibility for Medicare. The covered individuals may have to pay for the insurance in its entirety, including an additional two percent for administrative fees. State and local governments must adhere to COBRA, as do companies with 20 or more employees. Some states have laws that cover smaller companies. Coverage may be extended for a maximum of 18 to 36 months depending on the qualifying event.

HIPAA
The Health Insurance Portability and Accountability Act (HIPAA) provides broad protection for American workers concerning the privacy of health insurance. It gives patients and other individuals broad protections for their identifiable health information and limits who can see the information without permission. In addition, those who hold the information, such as doctor's offices, must put in safeguards so it is not accidently seen by unauthorized individuals. It includes medical records, patient/provider conversations, billing information, and other health information. Parties that must adhere to the rules include health plans, the majority of health care providers and health care clearinghouses, as well as their business associates.

Safety in the Workplace
The government plays a large role in promoting safety in the workplace. The Occupational Safety and Health Act of 1970 was implemented to prevent accidents at work by requiring safe working conditions. The Occupational Safety and Health Administration (OSHA) was formed by this act and gives and enforces rules and regulations about workplace safety. It conducts investigations, takes complaints, and issues fines. It requires employers to clearly label any hazards, create records of injuries and illnesses related to work, do OSHA-required tests such as air sampling and medical tests (depending on the industry), and tell OSHA if a fatality occurs or three workers go to the hospital. There are various requirements by OSHA, including providing employees with protective equipment, preventing exposure to toxic chemicals, adhering to noise restrictions and more. Also, employees can't be discriminated against for making a complaint.