{"id":569,"date":"2021-05-03T12:24:40","date_gmt":"2021-05-03T16:24:40","guid":{"rendered":"https:\/\/pressbooks.library.upei.ca\/startup\/chapter\/11-human-resources\/"},"modified":"2021-05-03T17:30:55","modified_gmt":"2021-05-03T21:30:55","slug":"11-human-resources","status":"publish","type":"chapter","link":"https:\/\/pressbooks.library.upei.ca\/startup\/chapter\/11-human-resources\/","title":{"raw":"11\/ Human Resources","rendered":"11\/ Human Resources"},"content":{"raw":"
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Adapted from Fundamentals of Business: Canadian Edition by Pamplin College of Business and <\/em>Virginia Tech<\/em> Libraries is licensed under a Creative Commons Attribution-<\/em>NonCommercial<\/em>-<\/em>ShareAlike<\/em> 4.0 International License, except where otherwise noted.<\/em><\/p>\r\n

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SOURCE: Artem <\/span>Podrez<\/span><\/a>\u00a0<\/a>.<\/p>\r\n\r\n

<\/a>Human Resources<\/h2>\r\n
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Learning Objectives<\/p>\r\n\r\n<\/header>\r\n

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Define human resource management and explain how managers develop and implement a human resource plan.<\/p>\r\n

Explain how companies train and develop employees and discuss the importance of a diverse workforce.<\/p>\r\n

Identify factors that make an organization a good place to work, including competitive compensation and benefits packages.<\/p>\r\n

Explain how managers evaluate employee performance and keep qualified employees.<\/p>\r\n\r\n<\/div>\r\n<\/div>\r\n

<\/a>Show What You Know<\/h2>\r\n

\"image\"An interactive or media element has been excluded from this version of the text. You can view it online here: Link<\/span><\/a>.<\/p>\r\n\r\n

<\/a>The Grounds of a Great Work Environment<\/h2>\r\n

Starbucks Founder Howard Schultz<\/span><\/a> has vivid memories of his father slumped on the couch with his leg in a cast.112<\/a><\/sup>\u00a0The ankle would heal, but his father had lost another job, this time as a driver for a diaper service. It was a crummy job; still, it put food on the table, and if his father could not work, there would not be any money. Howard was seven, but he understood the gravity of the situation, particularly because his mother was seven months pregnant, and the family had no insurance.<\/p>\r\n

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\"Original Starbucks, Seattle\"<\/span><\/a>\u00a0by\u00a0Cory M. Grenier<\/span><\/a>\u00a0is licensed under\u00a0CC BY-SA 2.0<\/span><\/a><\/p>\r\n

This was just one of the many setbacks that plagued Schultz\u2019s father throughout his life, an honest, hard-working man frustrated by a system that was not designed to cater to the needs of common workers. He held a series of blue-collar jobs (cab driver, truck driver, factory worker), sometimes holding two or three at a time. Despite his willingness to work, he never earned enough money to move his family out of Brooklyn\u2019s federally subsidized housing projects. Schultz\u2019s father died never having found fulfillment in his worklife, or even a meaningful job. It was the saddest day of Howard\u2019s life.<\/p>\r\n

As a kid, did Schultz ever imagine that one day he would be the founder and chairperson of Starbucks Coffee Company? Of course not. He decided that if he could ever make a difference in the lives of people like his father, he would do what he could. Remembering his father\u2019s struggles and disappointments, Schultz has tried to make Starbucks the company where he wished his father had worked. \u201cWithout even a high school diploma,\u201d Schultz admits, \u201cmy father probably could never have been an executive. But if he had landed a job in one of our stores or roasting plants, he would not have quit in frustration because the company did not value him. He would have had wonderful health benefits, stock options, and an atmosphere in which his suggestions or complaints would receive a prompt, respectful response.\u201d113<\/a><\/sup><\/p>\r\n

\u00a0<\/span>Schultz is motivated by both personal and business considerations: \u201cWhen employees have self-esteem and self-respect,\u201d he argues, \u201cthey can contribute so much more: to their company, to their family, to the world.\u201d114<\/a><\/sup>\u00a0His commitment to his employees is embedded in Starbucks\u2019s mission statement, whose first aim is to \u201cprovide a great work environment and treat each other with respect and dignity.\u201d115<\/a><\/sup>\u00a0Those working at Starbucks are called partners because Schultz believes working for his company is not just a job, it\u2019s a passion.116<\/a><\/sup><\/p>\r\n\r\n

<\/a>Point to Ponder<\/h2>\r\n

In April 2018, two black men were arrested for trespassing in a Philadelphia Starbucks. They had ordered nothing as they were waiting on a friend. Employees asked them to leave and when they did not, the police were called. Starbucks refrained from pressing charges and the men were released. The incident sparked debate and criticism of Starbucks, which triggered an apology from the company and closed all stores nationwide on May 29th for all employees to take diversity training.<\/p>\r\n\r\n

<\/a>Human Resource Management<\/h2>\r\n

Employees at Starbucks are vital to the company\u2019s success. They are its public face, and every dollar of sales passes through their hands.117<\/a><\/sup> According to Howard Schultz, they can make or break the company. If a customer has a positive interaction with an employee, the customer will come back. If an encounter is negative, the customer is probably gone for good. That is why it is crucial for Starbucks to recruit and hire the right people, train them properly, motivate them to do their best, and encourage them to stay with the company. The company works to provide satisfying jobs, a positive work environment, appropriate work schedules, and fair compensation and benefits. These activities are part of Starbucks\u2019s strategy to deploy human resources to gain competitive advantage. The process is called\u00a0human resource management\u00a0(HRM)<\/strong>, which comprises all actions that an organization takes to attract, develop, and keep quality employees. Each of these activities is complex. Attracting talented employees involves the recruitment of qualified candidates and the selection of those who best fit the organization\u2019s needs. Development encompasses both new employee orientation and the training and development of current workers. Keeping excellent employees means motivating them to excel, appraising their performance, compensating them appropriately, and doing what is possible to keep them.<\/p>\r\n\r\n

<\/a>Human Resource Planning<\/h2>\r\n

How does Starbucks make sure that its worldwide retail locations are staffed with just the right number of committed employees? How does Norwegian Cruise Line make certain that when the Norwegian Dawn pulls out of New York harbour, it has a complete, fully trained crew on board to feed, entertain, and care for its passengers? Managing these tasks is a matter of\u00a0strategic human resource planning, developing a plan for satisfying an organization\u2019s human resources (HR) needs.<\/p>\r\n

A strategic HR plan lays out the steps that an organization will take to ensure that it has the right number of employees with the right skills in the right places at the right times. HR managers begin by analyzing the company\u2019s mission, objectives, and strategies. Starbucks\u2019s objectives, for example, include the desire to \u201cdevelop enthusiastically satisfied customers\u201d as well as to foster an environment in which employees treat both customers and each other with respect.118<\/a><\/sup>\u00a0Thus, the firm\u2019s HR managers look for people who are \u201cadaptable, self-motivated, passionate, creative team members.\u201d119<\/a><\/sup>\u00a0The main goal of Norwegian Cruise Line, to lavish passengers with personal attention, determines not only the type of employee desired (one with exceptionally good customer-relation skills and a strong work ethic) but also the number needed (one for every two passengers on the Norwegian Dawn).120<\/a><\/sup><\/p>\r\n\r\n

<\/a>Job Analysis<\/h2>\r\n

To develop an HR plan, HR managers must be knowledgeable about the jobs that the organization needs performed. They organize information about a job by performing a job analysis to identify the tasks, responsibilities, and skills that it entails, as well as the knowledge and abilities needed to perform it. Managers also use the information collected for the job analysis to prepare two documents:<\/p>\r\n

A\u00a0job description, which lists the duties and responsibilities of a position.<\/p>\r\n

A\u00a0job specification, which lists the qualifications (skills, knowledge, and abilities) needed to perform the job.<\/p>\r\n\r\n

<\/a>HR Supply and Demand Forecasting<\/h2>\r\n

Once they have analyzed the jobs within the organization, HR managers must\u00a0forecast\u00a0future hiring (or firing) needs. This is the three-step process summarized below.<\/p>\r\n

Starbucks, for instance, might find that it needs 300 new employees to work at stores scheduled to open in the next few months. Disney might determine that it needs 2,000 new cast members to handle an expected surge in visitors. The Norwegian Dawn might be short two dozen restaurant workers because of an unexpected increase in reservations.<\/p>\r\n<\/a>Figure 1. How to Forecast Hiring (and Firing) Needs<\/small>\r\n

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After calculating the disparity between supply and future demand, HR managers must draw up plans for bringing the two numbers into balance. If the demand for labour is going to outstrip the supply, they may hire more workers, encourage current workers to put in extra hours, subcontract work to other suppliers, or introduce labour saving initiatives. If the supply is greater than the demand, they may deal with overstaffing by not replacing workers who leave, encouraging early retirements, laying off workers, or (as a last resort) firing workers.<\/p>\r\n\r\n

<\/a>Recruiting Qualified Employees<\/h2>\r\n

Armed with information on the number of new employees to be hired and the positions to be filled, the HR manager then develops a strategy for recruiting potential employees.\u00a0Recruiting\u00a0is identifying suitable candidates and encouraging them to apply for openings in the organization.<\/p>\r\n

Before going any further, we should point out that in recruiting and hiring, managers must comply with anti-discrimination laws; violations can have legal consequences.\u00a0Discrimination\u00a0occurs when a person is treated unfairly based on a characteristic unrelated to ability. Under Section 3 of the\u00a0Canadian Human Rights Act<\/span><\/a>, it\u2019s illegal to discriminate because of:<\/p>\r\n

\u201c<\/em>R<\/em>ace, national or ethnic origin, colour, religion, age, sex, sexual orientation, gender identity or expression, marital status, family status, genetic characteristics, disability or conviction for an offence for which a pardon has been granted or in respect of which a record suspension has been ordered.\u201d<\/em><\/p>\r\n

The Canadian Human Rights Commission and Canada\u2019s Charter of Rights and Freedoms protects and enforces several federal employment laws and protects each Canadian\u2019s right to equal treatment under the law, including:<\/p>\r\n\r\n