BUSINESS Final

HUMAN RESOURCE MANAGEMENT: Finding and Keeping the

Best Employees personnel
Human Resource Management (HRM) r select de mo e co sche

The process of determining human resource needs and then recruiting,

selecting, developing, motivating, evaluating, compensating, and scheduling
employees to achieve organizational goals.

the human resource function has become so important

no longer the job of just one department; it’s a responsibility of all managers.

some of the challenges and opportunities in human resources

ketidakpastian
Uncertainty in global politics and increased attention on hiring immigrants.

Technology, such as talent networks, crowdsourcing, and internal social

networks.
tenaga pekerja bbilang generasi
Multigenerational workforce. Older Millennials and Gen Xers hold
management positions, whereas Gen Zers are entering the workforce and
many baby boomers are delaying retirement
kekurangan
Shortages of trained workers in growth areas such as computer technology,
biotechnology, robotics, green technology, and the sciences.

Large numbers of skilled and unskilled workers from declining industries,

such as steel and automobiles, who are unemployed or underemployed and
need retraining.
yg tidak bekerja
Underemployed workers are those who have more skills or knowledge than
their current jobs require or those with part-time jobs who want to work full-
time.

A growing percentage of new workers who are undereducated and

unprepared for jobs in the contemporary business environment.

A shortage of workers in skilled trades due to the retirement of aging baby

boomers.

An increasing number of both single-parent and twoincome families,

resulting in a demand for job sharing, maternity leave, and special career

BUSINESS Final 1
 advancement programs for women.

A shift in employee attitudes toward work. Leisure time has become a much
higher priority, as have flextime and a shorter workweek.

An increased demand for temporary and part-time workers.

A challenge from overseas labor pools whose members work for lower
wages and are subject to fewer laws and regulations than U.S. workers. This
results in many jobs being outsourced overseas.

An increased demand for benefits tailored to the individual yet cost-effective

to the company.

Growing concerns over health care, elder care, child care, drug testing,
workplace violence (all discussed in Chapter 12), and opportunities for
people with disabilities.

Changes created by the Affordable Care Act (ObamaCare) that have added
a large number of regulations that employers have to implement and track.
Changes or replacement of ObamaCare will require learning new/different
regulations, and so on.

A decreased sense of employee loyalty, which increases employee turnover

and the cost of replacing lost workers.

Five steps in the human resource planning process

1. Preparing a human resource inventory of the organization’s employees

2. Preparing a job analysis

a. job analysis

i. A study of what is done by employees who hold various

job titles.

b. job description (job)

i. A summary of the objectives of a job, the type of work to be done,

the responsibilities and duties, the working
conditions, and the relationship of the job to other functions

c. job specifications (person who does the job)

i. A written summary of the minimum qualifications required of workers

to do a particular job.

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 job descriptions are about the job, and job specifications are about the
person who does the job

3. Assessing future human resource demand

4. Assessing future labor supply

5. Establishing a strategic plan.

Recruitment

The set of activities used to obtain a sufficient number of the right people at
the right time.

Challenge in recruitment

An emphasis on corporate culture, teamwork, and participative

management makes it important to hire people who not only are skilled
but also fit in with the culture and leadership style of the company

Employee Sources

Internal sources

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 include current employees who can be transferred or promoted or who
can recommend others to hire

is less expensive than recruiting from outside and helps maintain

employee morale.

Recruiting qualified workers may be particularly difficult for small businesses

with few staff members and less-than-competitive compensation to attract
external sources.

Selection Process (6 steps)

1. Obtaining complete application forms

2. Conducting initial and follow-up interviews

3. Giving employment tests

use tests to measure basic competency in specific job skills

or to help evaluate applicants’ personalities and interests.

4. Conducting background investigations

5. Obtaining results from physical exams

6. Establishing trial (probationary) periods

Contingent workers

Workers who do not have the expectation of regular, full time employment.

include part-time workers (anyone who works less than 34 hours per week),
temporary workers (workers paid by temporary employment agencies),
seasonal workers, independent contractors, interns, co-op students, and
freelancers

Training and development

All attempts to improve productivity by increasing an employee’s ability to

perform. Training focuses on short-term skills, whereas development
focuses on long-term abilities

Three steps

1. assessing organizational needs and employee skills to determine

training needs

2. designing training activities to meet identified needs

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 3. evaluating the training’s effectiveness

Training and development activities

orientation

The activity that introduces new employees to the organization; to

fellow employees; to their immediate supervisors; and to the
policies, practices, and objectives of the firm.

apprentice programs

Training programs involving a period during which a learner works

alongside an experienced employee to master the skills and
procedures of a craft.

off-the-job training

Training that occurs away from the workplace and consists of

internal or external programs to develop any of a variety of skills or
to foster personal development.

training is expanding to include education (through the

PhD) and personal development.

vestibule training (or near-the-job training)

is done in classrooms with equipment similar to that used on the job

so that employees learn proper methods and safety procedures
before assuming a specific job assignment.

Computer and robotics training is often completed in a vestibule

classroom

job simulation

is the use of equipment that duplicates job conditions and tasks so

that trainees can learn skills before attempting them on the job.

Management training programs

Job rotation

can learn about different functions of the organization, managers are

often given assignments in a variety of departments

Networking

BUSINESS Final 5
 process of establishing and maintaining contacts with key managers in your
own and other organizations, and using those contacts to weave strong
relationships that serve as informal development systems

Performance appraisal

An evaluation that measures employee performance against established

standards in order to make decisions about promotions, compensation,
training, or termination.
Pro Co Tra Ter
Six Steps

1. Establishing performance standards

2. Communicating those standards

3. Evaluating performance E C E Di Tak U

4. Discussing results with employees

5. Taking corrective action

6. Using the results to make decisions

360-degree review

management gathers opinions from all around the employee, including those
under, above, and on the same level, to get an accurate, comprehensive
idea of the worker’s abilities.

Pay systems

BUSINESS Final 6
 Fringe benefits

BUSINESS Final 7
 Benefits such as sick-leave pay, vacation pay, pension plans, and health
plans that represent additional compensation to employees beyond base
wages.

Cafeteria-style fringe benefits

Fringe benefits plan that allows employees to choose the benefits they want
up to a certain dollar amount.

Flextime plan

Work schedule that gives employees some freedom to choose when to

work, as long as they work the required number of hours

Core time

In a flextime plan, the period when all employees are expected to be at their
job stations.

Compressed workweek

Work schedule that allows an employee to work a full number of hours per
week but in fewer days.

Promotion from within

improves employee morale

cost-effective in that the promoted employees are already familiar with the
corporate culture

Marketing: Helping Buyers Buy

Marketing

The activity, set of institutions, and processes for creating, communicating,

delivering, and exchanging offerings that have value for customers, clients,
partners, and society at large.

1. The Production Era

Produce as much as you can, because there is a limitless market for it

2. The Selling Era

turned from producing to selling

emphasized selling and advertising i

BUSINESS Final 8
 3. The Marketing Concept Era

needed to be responsive to consumers

a. customer orientation.

Find out what consumers want and provide it for them.

b. service orientation.

Make sure everyone in the organization has the same objective:

customer satisfaction

c. profit orientation.

Focus on those goods and services that will earn the most profit and
enable the organization to survive and expand to serve more consumer
wants and needs.

4. The Customer Relationship Era

Customer relationship management (CRM)

The process of learning as much as possible about customers and doing

everything you can over time to satisfy them—or even exceed their
expectations— with goods and services.

5. The Emerging Mobile/On-Demand Marketing Era

demanding relevant information exactly when they want it, without all the
noise of unwanted messages

a. Now.

Consumers want to interact anywhere, anytime

b. Can I?

do new things with different kinds of information

c. For me.

expect all data stored about them to be used to personalize what

they experience.

d. Simple

all interactions to be easy.

Four Ps / Marketing Mix

BUSINESS Final 9
 1. Product

a. designing a want satisfying product

2. Price

a. setting a price for the product

3. Place

a. putting the product in a place where people will buy it

4. Promotion

a. promoting the product

1. Designing a Product to Meet Consumer Needs

Product

Any physical good, service, or idea that satisfies a want or need plus
anything that would enhance the product in the eyes of consumers, such
as the brand name.

Test marketing

The process of testing products among potential users.

Brand name

A word, letter, or group of words or letters that differentiates one seller’s

goods and services from those of competitors.

2. Setting an Appropriate Price

number of factors

the price could be close to what other charge to stay competitive.

charge less to bring new customers in, especially at the beginning

offer high-quality products for which customers are willing to pay a little
more

3. Getting the Product to the Right Place

Getting the product to consumers when and where they want it is critical to
market success

4. Developing an Effective Promotional Strategy

Promotion

BUSINESS Final 10
 consists of all the techniques sellers use to inform people about
and motivate them to buy their products or services

includes advertising; personal selling; public relations; publicity; word of

mouth (viral marketing); and various sales promotion efforts, such as
coupons, rebates, samples, and cents-off deals.

Marketing research

The analysis of markets to determine opportunities and challenges, and to

find the information needed to make good decisions

Secondary data

Information that has already been compiled by others and published in

journals and books or made available online.

Primary data

Data that you gather yourself (not from secondary sources such as books
and magazines).

Environmental scanning

The process of identifying the factors that can affect marketing success.

1. Global Factors

2. Technological Factors

3. Socioculture Factors

4. Competitive Factors

5. Economic Factors

2 Major Markets in Business

the consumer market

consists of all the individuals or households that want goods and

services for personal consumption or use and have the resources to buy
them.

The total potential consumer market consists of the billions of people in

global markets.

the business-to-business market.

BUSINESS Final 11
 consists of all the individuals and organizations that want goods and
services to use in producing other goods and services or to sell, rent, or
supply goods to others.

Customers in the B2B market are relatively few; there are just a few
large construction firms or mining operations

B2B sales are based on personal selling. There are fewer customers
and they usually demand more personal service.

Market segmentation

The process of dividing the total market into groups whose members have
similar characteristics

Target marketing

Marketing directed toward those groups (market segments) an organization

decides it can serve profitably.

Segmenting the Consumer Market

market segmentation

geographic segmentation

psychographic segmentation

benefit segmentation

volume (or usage) segmentation

Niche marketing

The process of finding small but profitable market segments and designing
or finding products for them.

One-to-one marketing

Developing a unique mix of goods and services for each individual customer.

Mass marketing

Developing products and promotions to please large groups of people.

Relationship marketing

Marketing strategy with the goal of keeping individual customers over time
by offering them products that exactly meet their requirements.

BUSINESS Final 12
 Factors that affect consumer behaviour

Culture

is the set of values, attitudes, and ways of doing things transmitted from
one generation to another in a given society

Cognitive dissonance

is a type of psychological conflict that can occur after a purchase

Using Effective Promotions

promotion mix

The combination of promotional tools an organization uses

integrated marketing communication (IMC)

A technique that combines all the promotional tools into one comprehensive
and unified promotional strategy.

Steps in promotional campaign

1. Identify a target market.

2. Define the objectives for each element of the promotion mix.

3. Determine a promotional budget.

4. Develop a unifying message.

5. Implement the plan.

6. Evaluate effectiveness.

Advertising

paid, nonpersonal communication through various media by organizations

and individuals who are in some way identified in the advertising message

Direct mail

full of information about products, prices, features, store policies, and

more

is newspaper advertising

Product Placement

BUSINESS Final 13
 advertisers pay to put their products into shows and movies where the
audience will see them

TV and movies, product placement is also used in video games.

Infomercial

A full-length TV program devoted exclusively to promoting goods or services

have been successful because they show the product and how
it works in great detail

Interactive promotion

Promotion process that allows marketers to go beyond a monologue, where

sellers try to persuade buyers to buy things, to a dialogue in which buyers
and sellers work together to create mutually beneficial exchange
relationships

Personal selling

The face-to-face presentation and promotion of goods and services.

Public relations (PR)

The management function that evaluates public attitudes, changes policies

and procedures in response to the public’s requests, and executes a
program of action and information to earn public understanding and
acceptance

Publicity

Any information about an individual, product, or organization that’s

distributed to the public through the media and that’s not paid for or
controlled by the seller

Sampling

letting consumers have a small sample of the product for no charge

word-of-mouth promotion

A promotional tool that involves people telling other people about products
they’ve purchased

positive word of mouth

BUSINESS Final 14
 send testimonials to current customers. Most companies use these only
in promoting to new customers, but testimonials are also effective in
confirming customers’ belief that they chose the right company.
Therefore, some companies make it a habit to ask customers for
referrals

Pull Stategy

directs heavy advertising and sales promotion efforts toward consumers.

If the pull strategy works, consumers will go to the store and ask for the
products. The storeowner will order them from the wholesaler, who in turn
will order them from the producer

Understanding Accounting and Financial Information

have to know something about accounting

if want to succeed in any type of business.

Accounting

The recording, classifying, summarizing, and interpreting of financial events

and transactions to provide management and other interested parties the
information they need to make good decisions.

Financial transactions

include buying and selling goods and services, acquiring insurance, paying
employees, and using supplies.

Purpose of accounting

to report financial information about the firm to interested stakeholders, such

as employees, owners, creditors, suppliers, unions, community activists,
investors, and the government (for tax purposes)

Accountants

summarizing and interpreting financial information needed by his firm's

managers.

GAAP

generally accepted accounting principles

The accounting system

BUSINESS Final 15
 Accounting cycle

A six-step procedure that results in the preparation and analysis of the major
financial statements.

Bookkeeping

the recording of business transactions, is a basic part of financial reporting

Journal

The record book or computer program where accounting data are first
entered.

Double-entry bookkeeping

The practice of writing every business transaction in two places

Ledger

A specialized accounting book or computer program in which information

from accounting journals is accumulated into specific categories and posted
so that managers can find all the information about one account in the same
place

Trial balance

A summary of all the financial data in the account ledgers that ensures the
figures are correct and balanced.

Key financial statements of a business

1. balance sheet

a. Financial statement that reports a firm’s financial condition at a specific

time and is composed of three major accounts: assets, liabilities, and

BUSINESS Final 16
 owners’ equity.

2. income statement

3. statement of cash flow

Liabilities

What the business owes to others (debts)

Long-term liabilities

debts not due for one year or more.

Example

1. Accounts payable

2. Notes payable

3. Bonds payable

Retained earnings

accumulated earnings from the firm’s profitable operations that are

reinvested in the business and not paid out to stockholders in distributions of
company profits

Operating expenses

Costs involved in operating a business, such as rent, utilities, and salaries.

Financial accounting

Accounting information and analyses prepared for people outside the

organization.

Annual report

A yearly statement of the financial condition, progress, and expectations of

an organization.

Private accountant

who works for a single firm, government agency, or

nonprofit organization

Public accountant

provides accounting services to individuals or businesses.

Certified public accountant (CPA)

BUSINESS Final 17
 An accountant who passes a series of examinations established by the
American Institute of Certified Public Accountants (AICPA) and meets the
state’s requirement for education and experience

Managerial accounting

provides information and analysis to managers inside the organization to

assist them in decision making.

Auditing

reviewing and evaluating the information used to prepare a company’s

financial statements

Tax accountant

An accountant trained in tax law and responsible for preparing tax returns or
developing tax strategies

Understanding Accounting and Financial Information

Finance

The function in a business that acquires funds for the firm and manages
those funds within the firm. business function involves credit management /
collecting funds from customers.

Financial managers

examine financial data prepared by accountants and recommend strategies

for improving the financial performance of the firm.

must also analyze the tax implications of managerial decisions to help

minimize the taxes the business must pay

A comptroller

is the chief accounting officer

What Financial Managers Do

1. Budgeting

2. Planning

3. Managing taxes

4. Advising top management on financial matters

BUSINESS Final 18
 5. Obtaining funds

6. Collecting funds (credit management)

7. Auditing Controlling funds (funds management)

Reasons a firm fails financially are:

1. Undercapitalization (insufficient funds to start the business)

2. Poor control over cash flow.

3. Inadequate expense control.

Internal auditor

checks the journals, ledgers, and financial statements the accounting

department prepares, to make sure all transactions are in accordance with
generally accepted accounting principles

A short-term forecast

predicts revenues, costs, and expenses for a period of one year or less

A long-term forecast

predicts revenues, costs, and expenses for a period longer than

1 year, sometimes as long as 5 or 10 years

A budget

sets forth management’s expectations for revenues and, on the basis of

those expectations, allocates the use of specific resources throughout the
firm

Capital budget

A budget that highlights a firm’s spending plans for major asset purchases
that often require large sums of money.

cash budget

A budget that estimates cash inflows and outflows during a particular period
like a month or a quarter.

Operating (or master) budget

The budget that ties together the firm’s other budgets and summarizes its
proposed financial activities.

BUSINESS Final 19
 Capital expenditures

Major investments in either tangible long-term assets such as land,

buildings, and equipment or intangible assets such as patents, trademarks,
and copyrights

Debt financing

Funds raised through various forms of borrowing that must be repaid. equity
financing Money raised from within the firm, from operations or through the
sale of ownership in the firm (stock or venture capital).

Obtaining Short-Term Financing

Trade credit

the practice of buying goods or services now and paying for them later. It is
the most widely used source of short-term funding, the least expensive, and
the most convenient.

Family and Friends

Commercial Banks

Different Forms of Short-Term Loans

A secured loan

backed by collateral, something valuable such as property

Factoring Accounts Receivable

Commercial Paper

a type of short-term financing available to large corporations that

need funds for just a few months and prefer not to have to negotiate with a
commercial bank.

consists of unsecured promissory notes, in amounts of $100,000

and up, that mature or come due in 270 days or less.

Credit Cards

Obtaining Long-Term Financing

Debt Financing

1. getting a loan from a lending institution

Long-term loans

BUSINESS Final 20
 usually due within 3 to 7 years but may extend to 15 or 20 years.

2. issuing bonds.

An unsecured bond (debenture bond)

is backed only by the reputation of the issuer.

Equity Financing

1. by selling stock

2. form retained earnings

retained earnings

major source of long-term funds

saves interest payments, dividends (payments for investing in

stock), and any possible underwriting fees for issuing bonds or stock

3. from venture capitalist

venture capital

money that is invested in new or emerging companies that are

perceived as having great profit potential.

Comparing Debt and Equity Financing

Using Technology to Manage Information

data processing (DP)

included technology that supported an existing business and was primarily

used to improve the flow of financial information.

Data

raw, unanalyzed, and unorganized facts and figures.

Information

processed and organized data that managers can use for decision making.)

The primary purpose of data processing was to improve the flow of financial
information. Data processing employees were support staff who rarely came in
contact with customers.

In the 1980s, business technology became known as information systems (IS)

BUSINESS Final 21
 Business intelligence (BI) (or analytics)

The use of data analytic tools to analyze an organization’s raw data and
derive useful insights from them.

Biological data.

Forms of identification include improved fingerprinting technology

and biometric devices that scan retinas, recognize faces and voices, and
analyze DNA

Public data.

Free and accessible, public data include the electronic traces we leave when
posting to the Internet, sending e-mail, and using instant messaging

Data mining

a technique for looking for hidden patterns and previously unknown

relationships among the data

Intranet

A companywide network, closed to public access, that uses Internet-type

technology.

To prevent unauthorized outsiders (particularly the competition) from

accessing their sites, companies can construct a firewall between
themselves and the outside world

Extranet

A semiprivate network that uses Internet technology and allows more than
one company to access the same information or allows people on different
servers to collaborate.

Broadband technology

Technology that offers users a continuous connection to the Internet and

allows them to send and receive mammoth files that include voice, video,
and data much faster than ever before.

Web 2.0

The set of tools that allow people to build social and business connections,
share information, and collaborate on projects online (including blogs, wikis,
social networking sites and other online communities, and virtual worlds).

BUSINESS Final 22
 Cloud computing

A form of virtualization in which a company’s data and applications are

stored at offsite data centers that are accessed over the Internet (the cloud).

Using computers linked to the company’s network, mobile employees can

transmit their work to the office from anywhere as easily as they can walk to the
boss’s office

Virus

A piece of programming code inserted into other programming to cause

some unexpected and, for the victim, usually undesirable event

viruses by unknowingly downloading infected programming over the

Internet or sharing an infected USB storage device

viruses are playful messages, some can be quite harmful, erasing data or
causing your hard drive to crash

new viruses are being developed constantly

important to keep your antivirus protection up-to-date and, more

important, practice safe computing by not downloading files from
unknown sources

Others
Data warehouse

the storage of information over time by a business or other organization.

Spreadsheet file

a computer program that can capture, display and manipulate data arranged
in rows and columns

Data capsule

contains sensitive personal data, a policy restricting how the data may be
processed

Data packet

a unit of data made into a single package that travels along a given network
path

Mainframe computer system

BUSINESS Final 23
 mainframes are high-performance computers with large amounts of memory
and processors that process billions of simple calculations and transactions
in real time.

Data exchange

process of taking data structured under a source schema and transforming it

into a target schema, so that the target data is an accurate representation of
the source data.

allows data to be shared between different computer programs.

Network Computing System?

interconnected computing devices that can exchange data and share

resources with each other.

Application computer system?

type of computer program that performs a specific personal, educational,

and business function. Each application is designed to assist end-users in
accomplishing a variety of tasks, which may be related to productivity,
creativity, or communication.

Shareware

not protected by copyright and is distributed free for the taking

BUSINESS Final 24