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Business Fundamentals | Functions of a Business | Entrepreneurship | Finance | Summative Project


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Human Resources

The Functions of Human Resources Management


What you need to remember:
Function of HR Management
  • Labour Market
  • When do you need an employee?
  • The application/interview process
  • Job Training
  • Good employee retention
  • Departures/Dismissals/Retirements
  • Handling compensation
  • Health & Safety
Key Skills
  • Academic
  • Personal Management
  • Teamwork
Rights in the Workspace
  • Rights of employee
  • Rights of employer


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.

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.
e.g. If an employee produces 1000 units in a week and is paid $500 per week the approximate cost of labour for each unit is 50¢ ($500 ÷ 1000). What if the employee made 1200? If raw materials cost 9¢/unit and there is an order for 1000 units with a sale price of 99 ¢/unit, what’s the difference in profit?
  • 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.

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 centers, online recruiting Web sites, such as Workopolis/Monster a company’s Web site employee search firm often called a headhunter employee referral program recent job applicants.

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
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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.

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 (based on seniority usually). Companies sometimes offer severance packages. If provided, outplacement counseling offers terminated employees ways to find new jobs
  • 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.
  • 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.
  • 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.
  • Performance-based Pay

    • Piecework is performance-based pay that is calculated on how much product can be made by one person.
  • Fee for Service

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

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.
  • 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.

Key Employable Skills

The Conference Board of Canada has developed a list of employability skills including academic skills, personal management skills, and teamwork skills.
  • Academic Skills

    • Academic skills allow you to obtain, retain, and progress on the job. These skills include the ability to:
      • Communicate
      • Think
      • learn
  • Personal Management Skills

    • Canadian employers need people who can demonstrate the following skills, attitudes, and behaviours:
  • positive attitudes and behaviours

    • responsibility

  • Teamwork Skills

    • To achieve organizational goals, employees need to work collaboratively with one another in the workplace.

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:
    • Certified Accountants (CA)
    • Certified General Accountants (CGA)
    • Certified Management Accountants (CMA)
  • 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.
  • 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.

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.





Assignment #7: Human Resources Activity Job Analysis


One of the best places to find job analysis is in the posting of jobs available. In classified ads they usually state a detailed job analysis. Visit www.monster.ca and click on browse jobs (link in small type on left). Browse jobs in Ontario>Ottawa and then click on an Industry OR Category to narrow your search. After choosing your Industry or Category, click on View Jobs Now (button on the right). Access jobs in three different categories of your choosing.

Make sure the completed descriptions are filled out on your standard submission sheet from Assignment #1 (the one with your logo/personal info.)

Format your submission as follows:
Job Title: Company:

Duties:




Job Requirements:




Other Details???

Address the following questions:

  1. What is the minimum level of education required for all three jobs?
  2. List 2 similarities for requirements in the three cases.
  3. Is salary listed in any of the 3 cases? If so, what is it, if not, why might they not include it?