Chapter 6: Human Resources

The Functions of Human Resources

Management
In business, human resources (HR) is part of the management team who hire
workers, set up their training programs, and arrange for payment of their
salaries.

Small companies handle these duties themselves. However, large companies

have a human resources department that is responsible for coordinating all
employees’ activities, such as reviewing applications to arranging pay.

The Labour Market

The labour market is where employers (buyers of skills) meet employees
(sellers of skills).

Occupational forecasts involve predictions about jobs that help to inform

individuals about future job conditions and wages.

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The Importance of Productivity
Employers want employees to be productive: the more they produce in the
hours that they work, the more profit the business can make.

The Importance of Skilled Labour

A skilled employee means that a business can save money because the
worker can usually produce a better product or service.

The Importance of a Positive Attitude

Happy employees are more productive than unhappy ones.

Determining the Need for a New Employee

HR helps businesses to create a staffing plan to avoid hiring under pressure.
HR also forecasts a company’s employee turnover, the rate at which
employees leave a company for another job or to retire.

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Looking for the Right Employee
HR uses a variety of recruitment sources to hire
qualified employees including
• newspaper, journal, and magazine
advertisements
• notices at universities or colleges
• postings on job banks at government
employment centres
• online recruiting Web sites, such as
Workopolis
• a company’s Web site
• employee search firm often called a
headhunter
• employee referral program
• recent job applicants
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The Application Process and the Interview
A person looking for a position in a company usually submits an
application form, a cover letter, and a resumé. An HR person and the
department manager who the new employee will work for usually
interviews and decides on the successful applicant.

Interview Tips
• dress appropriately • be pleasant, enthusiastic
• go alone • listen to questions, answer briefly
• know the time, place • be aware of body language
• arrive a few minutes early • thank the interviewer for their
• give a firm handshake, smile time
• and make eye contact, • reaffirm interest in the job
• stay focused, remain calm
http://www.youtube.com/watch?v=znsXA2aTXCE 4
Chapter 6: Human Resources
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Job Training
Orientation is the time when new employees tour the workplace and
meet other co-workers. At this point, employees may also receive
training on equipment and be introduced to new technology and
software.

Keeping Good Employees

It is for costly for businesses to search for, hire, and train new
employees. Most businesses take steps to retain good employees.
Some businesses offer employees perks—special benefits beyond
ordinary compensation—to attract and retain them.

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Departures, Dismissals, and Retirements

HR tries to ensure a smooth transition when employees leave the

business regardless of the reason for the departure. Businesses need to
protect their reputation and maintain good relationships with employees.

Departures
During an exit interview, the employee may discuss their future goals,
provide some feedback about the workplace, and ways for improvement.
Some employers give a positive reference for or letter of recommendation
to their employees.

Dismissals
Employers in corrective interviews discuss work problems with
employees. Employees then improve or face dismissal. Employee
layoffs can occur due to financial cut backs. Companies sometimes offer
severance packages. If provided, outplacement counselling offers
terminated employees ways to find new jobs.
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Retirement
Retirement occurs when an employee voluntarily withdraws from the
labour market.

Handling Compensation
Compensation is the money and other benefits received by
employees in exchange for their work.

Read pages 188 – 191 to complete the table. Be sure to include an

example of an employee who would typically receive the type of
compensation defined.

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Compensation

Hourly Wages
A common compensation payment method is an hourly wage.
The minimum wage is the lowest hourly wage an employer can
legally pay an employee. Overtime is a higher hourly rate for working
longer than the regular scheduled time or on holidays.

Salary
A salary is a fixed amount of money paid to an employee on a regular
schedule, usually weekly or monthly.

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Salary plus Commission

Pay based on the amount of sales generated is
called commission. Generally, it is a small
amount of money added to the salary or hourly
wage that acts as an incentive to encourage
an employee to work harder.

Straight Commission
Straight commission is based solely on an employee’s sales.

Incentive Bonus
When employees perform well, they may be rewarded with bonuses.
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Performance-based Pay
Piecework is performance-based pay that is
calculated on how much product can be made by
one person.

Sweatshops are piecework factories

characterized by low wages and unsafe or
unhealthy conditions.

Fee for Service

A complete job is paid by one fee, and is usually
documented in a signed contract.

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Royalty or Licensing Fee

A royalty is a fee paid to the owner of a patent or copyright by
someone who uses it. A licensing fee is money paid to obtain a
license.

Stock Options
Stock options are a form of compensation that gives employees
the opportunity to buy shares in the company at a lower-than-
market price.

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Health and Safety

Federal and provincial laws require businesses to provide and

maintain a safe and healthy work environment.

Health
Sick pay are wages paid to any employee who is absent from work
due to illness. Employers benefit from healthy employees. To
encourage this, many businesses have established wellness
programs that promote the physical and emotional well-being of
their employees.
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Safety
According to Part Two of the Canada Labour Code,
employees have the right to
• be informed about known and foreseeable
hazards in the workplace
• identify and resolve job-related problems in
safety and health
• refuse dangerous work if they have
reasonable cause to believe that a situation
constitutes a danger

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Chapter 6: Human Resources
Key Employability Skills

The Human Resources and Skills Development Canada is the

federal agency that is responsible for “building a stronger and
more competitive Canada”. Through extensive research, the
Government of Canada, along with other national and
international agencies, has identified and validated key
literacy and Essential Skills.

http://en.careers.essentialskillsgroup.com/?p=video

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Business Careers

Professions such as medicine or the law as well as the trades of

plumbing or construction are a few of the career choices that people
can make today.

General Business
A high-school education is usually the minimum requirement for entry-
level jobs in business.

Accounting Careers
Professional accountants must be certified and obtain one of the
following designations:
• Chartered Accountants (CA)
• Certified General Accountants (CGA)
• Certified Management Accountants (CMA)

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Business Careers

Consulting Careers
Consultants are individuals who are paid by businesses for their
expertise and advice on specific topics.

Entrepreneurship
Many successful individuals start their own businesses. They apply
their skills and invest capital to create unique businesses that meet
the needs and wants of consumers.

Financial Careers
A financial career involves looking after and giving advice about
other people’s investments or assets.

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Business Careers
Human Resources Careers
Large corporations seek individuals who have taken
human resources management courses at a
community college or at university.

Marketing Careers
The range of careers within marketing differ with
most requiring post-secondary education, strong
communication skills, and a creative edge.

Personal Selling Careers

Task ranges, skill levels, and incomes vary to a great
extent within the personal sales sector.

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Chapter 6: Human Resources
Rights in the Workplace
The Universal Declaration of Human Rights, adopted by the General
Assembly of the United Nations on December 10, 1948, is the source for
many of the workplace rights available to employees and employers
today.

The Rights of the Employee

The provincial and federal governments provide legislation that
determines employment standards for public and private sector
employees. Each province has human rights legislation that protects
employees against discrimination and harassment.

The Right of the Employer

Employers have the right to hire, dismiss, and promote employees, and to
establish conditions of employment that best serve their business goals.

Information about Hours of Work and Overtime Pay

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