BUS261 Class 14 _ Human Resource Management 2

Upcoming Classes

• Review Session on March 21stPrepare for the upcoming review session by completing a poll to determine the focus areas. A review sheet will be available on Canvas to help guide your study and preparation.

• Midterm on March 25thThe midterm will involve a format of multiple-choice questions and potentially some short answer questions. It will be conducted on Brightspace but held IN PERSON, allowing a more interactive exam environment. Students are permitted to bring one piece of regular letter-size paper with notes written on ONE side, which can be invaluable for quick references during the exam.

Entrepreneurial Process Overview

The entrepreneurial process consists of several critical stages that potential business owners should understand:

1. Identifying Opportunities

   • Recognizing gaps in the market and understanding customer needs.

   • Market research and competitor analysis as foundational steps.

2. Transitioning from Opportunity to Business

   • Assessing feasibility, market potential, and drafting a business model.

   • Developing a value proposition.

3. Financing Business Ventures

   • Exploring funding options such as personal savings, loans, venture capital, and crowdfunding.

   • Understanding the implications of each financing type on business ownership and control.

4. Crafting a Business Plan

   • A comprehensive business plan serves as a roadmap for the business, outlining objectives, strategies, market analysis, and financial projections.

   • Importance of presenting the plan to potential investors and stakeholders.

5. Delivering a Business Pitch

   • Techniques for effectively communicating your business idea to investors and partners.

   • Tailoring the pitch to engage the audience and address their concerns.

6. Cashing In on Business Success

   • Strategies for scalability and revenue generation.

   • Setting milestones for evaluating business performance.

7. Business Support FunctionsSupport functions like human resource management (HRM), IT, and legal guidance play a vital role in the smooth operation and growth of the business.

Human Resource Management (HRM)

• Employee Recruitment

  • Implementing strategic objectives to attract talent that aligns with the company culture and goals.

• Compensation Structure

  • Different payroll types: Hourly (requiring overtime for hours exceeding 40/week) and Salary (providing annual compensation).

  • Understanding contract workers, who receive 1099s instead of W2s and do not typically receive benefits.

• Fringe Benefits

  • Required by law to provide benefits such as Social Security & Medicare tax, workers' compensation, and certain health insurances (COBRA and FMLA).

  • Optional benefits that enhance employee satisfaction include paid time off, retirement plans with 401(k) matches, profit-sharing, stock options, and educational support.

• Retirement Benefits

  • Pensions: Defined Benefit retirement plans based on final salary, ensuring stable income post-retirement.

  • 401(k): Defined Contribution plans, allowing both employee and employer contributions, with considerations for the impact of vesting periods.

• Retirement Savings Tips

  • Emphasize the importance of early contributions to maximize compound interest effects.

  • Encourage participants to take full advantage of employer matching contributions in 401(k) plans.

  • Advise allocating a portion of salary increases towards enhancing retirement savings.

Talent Management

• Recognizing the importance of continuous skill development and retention of top talent.

  • Opportunity for proprietary training programs, access to online platforms, and assistance for educational pursuits.

  • Performance Management: Creating a feedback loop linking appraisals directly to pay increases and bonuses, enabling objective assessments.

  • Implementing a 360-degree feedback process for holistic employee evaluations.

  • Focusing on succession planning to ensure leadership continuity.

Employment Law in the USA

• Legal Requirements: Familiarity with significant legislation including the Equal Employment Opportunity, ADEA, ADA, FLSA, Equal Pay Act, FMLA, and OSHA is crucial for compliance.

• Employment at Will: Understanding the fundamental principle that both employers and employees may terminate employment at will without notice, although two weeks' notice is typical from employees.

Employee and Labor Relations

• Unions: Engaging in collective bargaining requires monthly member contributions, addressing outcomes such as compensation, benefits, and job security. Strikes and labor slowdowns may serve as protest mechanisms when negotiations face challenges.

Business Support Functions

• Role of IT: Moving beyond simple helpdesk assistance, IT should implement software solutions that enhance operational efficiency and secure business data.

Legal Guidance

• Understanding essential areas of business law: Contract Law, Tort Law, Property Law, Agency Law, Commercial Law, and Bankruptcy Law, and recognizing how each type impacts business decisions.

Communications

• Development of key communication roles within the business:

  • Internal Communications: Ensure effective internal messaging to maintain employee alignment and morale.

  • Investor Communications: Regular updates and transparency with investors to foster trust and engagement in business operations.

  • Crisis Communications: Preparing for potential business threats and developing response strategies to protect the business reputation.

Risk Management

• Emphasizing proactive measures to minimize potential threats to the business through systematic risk management strategies.

Research & Development

• Fostering a culture of innovation and adaptability to market changes is critical for sustained competitive advantage.

Facilities Management

• Effective management of office upkeep, maintenance, and workspace planning is essential for operational efficiency. Optimized facility usage contributes to overall business effectiveness.