Human Resources Basics - Introduction To Business - ثاني ثانوي

PLANNING A CAREER IN... HUMAN RESOURCES 49 E ducation & Training Businesses with a long history of success recognize the importance of their employees. A highly skilled, motivated Related Job Titles Director of Human Resources • Benefits Specialist • Employment Recruiter • Employee Relations Manager • Organizational Development Consultant Training Specialist • EEO/Affirmative Action Representative • Labor Contracts Negotiator • Job Analyst workforce can provide a competitive edge. Companies often spend more money on their personnel than on any other resource. With so large an investment, companies need professional human resources personnel to recruit, train, motivate, and compensate employees. The goal of human resources is to ensure that the right people are in the right jobs at the right time. This is accomplished by hiring the best people, maintaining a work environment that encourages productivity and satisfaction, and offering programs that allow employees to develop skills to meet rapidly changing job requirements. Large human resources departments are made up of a number of specialists. They work closely with managers, heads of departments, and employees to ensure that employees are available, capable, and willing to work. They also make sure employees are paid and recognized for their contributions. Analyze Career Opportunities in ... HUMAN RESOURCES Use library and Internet resources to learn more about careers in human resources. Choose one of the job titles listed in the box and answer the following questions. 1. How would you describe the earnings potential for this field? 2. Is this a career that interests you? Explain how careers in this field match up with your goals and interests. What it's like to work as a... Corporate Trainer Amina is a trainer for a Saudi chemical production company. She has had an interesting career path, starting as a high school science teacher, followed by five years as a laboratory specialist. Six months ago, she applied for a training position in the company. In this new job, Amina combines her passions for teaching, science, and helping her co-workers. As a trainer, Amina meets with managers to identify training needs. Those needs might be helping new employees learn their jobs, preparing experienced employees for new processes, or developing a teamwork course. Amina works with instructional designers and media specialists to prepare training materials. She must stay up to date with the latest educational technology in order to deliver training to employees located at sites all over the world. What about you? What aspects of a career as a corporate trainer do of a career as a corporate trainer do you think you would find interesting? وزارة التعليم Ministry of Education 2024-1446 Human Resources, Culture, and Diversity | 113

4.1 Human Resources Basics Link to digital lesson www.ien.edu.sa Learning Outcomes Once you have completed this lesson, you should be able to: 4.1.1 Describe the nature of today's workforce. 4.1.2 Identify important goals and activities of human resources. Key Terms Workforce Downsizing Outsourcing Focus on REAL LIFE "Do you think we'll ever see the time when people don't have jobs because robots do all the work?" Sami asked Ali as they left the science museum after enjoying the latest robotics exhibition. "It would be fun to think about never having to work but I think I'd get bored after a while," replied Ali. "Besides, I want to be an industrial designer. That will require creativity and I don't think robots can be creative." Sami laughed and said, "There are probably lots of things robots can't do. Plus, even if computers and robots are able to complete even more complex tasks in the future, people will still be responsible for planning and programming the work." "The creativity, personalities, and skills of employees are what really make a business," Ali responded. "So we won't be replaced by robots," said Sami. "We'll just have to learn how to get along with them." LO 4.1.1 THE CHANGING WORKFORCE In Saudi Arabia, the workforce is made up of all eligible people who are employed or who are looking for a job. People can begin working from the age of 15, under certain constraints, as detailed in the Saudi child protection system. In 2021, the size of the Saudi workforce was more than 16 million people (source: World Bank). That includes everyone holding a full- or part-time job and those seeking employment. For many jobs you need specialized training beyond high school or a college degree. Today's jobs offer a variety of working conditions and different wages and benefits. Some involve working mainly with machines and technology. Others deal mainly with people and information. Types of Jobs The business world consists of hundreds of thousands of companies offering a wide variety of jobs. In general, there are two major types of industries in most developed countries. The service- providing industries include businesses that perform services that satisfy the needs of other FYI Governments will often provide useful information about the jobs available to the workforce. The Labor and Employment section of the www.my.gov.sa website offers useful up-to-date information about the rules, regulations, and opportunities available to the Saudi workforce. businesses and consumers. Service companies include healthcare facilities, financial companies, retail stores, transportation businesses, and many others. Goods-producing industries include businesses that produce or manufacture products used by other businesses or purchased by final consumers. 114 Chapter 4 | Human Resources, Culture, and Diversity وزارة التعليم Ministry of Education 2024-1446 GE44.PATHWAYS.G02.ITB.SB.PP1.indb 114 08/05/2024 09:13

These companies are involved in construction, manufacturing, mining, and agriculture. Figure 4-1 highlights the industry categories. GOODS-PRODUCING INDUSTRIES Construction Manufacturing Natural Resources and Mining Agriculture, Forestry, Fishing and Hunting Mining, Quarrying, and Oil and Gas Extraction SERVICE-PROVIDING INDUSTRIES Education, Health Care, and Social Assistance Services Financial Activities Finance and Insurance Real Estate, Rental and Leasing Information Services Leisure and Hospitality Arts, Entertainment, and Recreation Accommodation and Food Services Professional and Business Services Scientific and Technical Services Management of Companies and Enterprises Administrative and Support Services Waste Management and Remediation Trade, Transportation, and Utilities Wholesale Trade Retail Trade Transportation and Warehousing Utilities FIGURE 4-1 In your opinion, which category, service-providing or goods-producing, accounts for more jobs in your community? As discussed in Chapter 2, the Saudi economy continues to evolve. The key traditional Saudi industries are oil and gas, and mining for industrial minerals and precious metals like gold and silver. While these sectors continue to thrive at the leading edge of the industrial field, there is a shift in emphasis towards diversification in the economic sector, with many emerging job opportunities in the hospitality, tourism, cyber security, artificial intelligence, clean and renewable energy, and financial sectors, and wider service industries. An ambitious and dynamic workforce and a growing economy will ensure that there are jobs in every category. Another way of looking at the changing workforce is to think about groups of occupations. Occupations are affected by short- and long-term changes in industries, technology, and the overall economy. In some countries such as the U.S., different occupations have been grouped into two broad categories: white-collar and blue-collar. A white-collar worker is one whose work is more mental than physical and involves the handling and processing of information. Most white-collar workers are employed in offices and stores. They include professional, managerial, and clerical workers. A blue- collar worker is one whose job involves more physical work, including the operation of machinery and equipment or other production activities. Blue-collar workers are employed in factories, on construction sites, on farms, and in the delivery of many basic services. With the growth of service industries, a new category of worker has emerged. Service workers produce intangible goods for businesses and consumers. Some service jobs require high levels of education and skill. Others do not. وزارة التعليم Ministry of Education 2024-1446 4.1 Human Resources Basics | 115

Work as a TEAM Each year, Fortune magazine and the Great Place to Work Institute identify the "Best Companies to Work For" around the world. These rankings are based on surveys taken by the employees of many top companies. As a team, make a list of ten things a company can do that you believe would help it make it to the "Best Companies..." list. Changing Job Requirements White-collar, blue-collar, and service workers are all necessary in the workforce. Increased use of computers and information technology in factories, on farms, and in construction is changing the nature of many types of work. The changes call for higher levels of education and training. A variety of factors will drive the evolution of work in the future. Among these factors are consumer preferences, economic cycles, new technologies, and business competition. Consumer Preferences Jobs are affected by consumer demand for a product or service. Sometimes new products entering the market make existing products obsolete. Workers making the old products may find that their jobs are changed or even eliminated. New jobs may be created by the demand for the new products. Economic Cycles Changes in the economy affect job opportunities. When businesses expand because consumers buy more goods and services, new jobs are created to meet the growing demand. More workers are employed and earn more money. In turn, they are able to spend more on goods and services. Higher prices may cause consumers to decrease the amount they buy. In many countries around the world, when interest rates increase, both businesses and consumers find it difficult to borrow money. Demand for goods and services decreases. As a result, jobs may be eliminated or work hours may be reduced. Consumer spending and demand is decreased even more as the economy slows. New Technologies Technology refers to the use of automated machinery, electronic equipment, and integrated computer systems to help increase the efficiency of producing goods and services. Name ways in which automation and technology change the way manufacturing businesses operate. Technology is important in the work environment. It improves efficiency so that businesses may stay competitive. Modern advances including artificial intelligence, 3D printing, and robotics have greatly reduced the need for production workers in many manufacturing industries. These include steel, autos, tires, and consumer electronics. Sophisticated cloud-based communications systems have also reduced the need for office employees such as administrators and accountants. New technology continues to change the types of jobs in production and manufacturing. It has also changed how most office workers, service workers, and professionals perform their jobs. Business Competition Companies must be competitive in order to stay in business. Businesses are now looking for talented, entrepreneurial, and highly-skilled human capital in order to remain competitive. Installing new equipment and streamlining processes make workers more productive. Businesses may also decide to downsize. Downsizing is a planned reduction in the number of employees in order to cut costs and make a business more efficient. Outsourcing removes work from one company and sends it to another company that can complete it at a lower cost. According to a March P116 Chapter 4 | Human Resources, Culture, and Diversity Ministry of Education 2024-1446

2022 report, 'Saudi Arabia Manpower Outsourcing Market Forecast to 2028', the Saudi outsourcing market was approximately SAR 10 billion in 2021. Life-Span Plan Explain why it is necessary to understand changes that are taking place in the workplace, such as new technological developments, when you set your life-span goals. CHECKPOINT What are several strong influences on changes in the workforce? LO 4.1.2 HUMAN RESOURCES OVERVIEW The work of every company is completed by the organization's employees. Employees who have the knowledge and skills needed, who are motivated to work efficiently, and who complete their jobs with quality contribute to the success of the business. Companies that have difficulty finding qualified employees, have a poor work environment, and suffer from quality issues, waste, and employee errors will have difficulty remaining competitive or meeting customer needs. Human resources are the people who work for a business. Human resources include management and employees, full-time and part-time workers. People hired to fill temporary positions as well as those who have worked for the company for many years are human resources. Managing human resources is one of the most important responsibilities of a business. Most medium- to large-sized businesses in developed countries have a department devoted to human resources management and activities. Human Resources Goals Human resources are different from almost every other resource needed by businesses. They bring varied knowledge, skills, experience, and motivation to their jobs. People are used in different ways in a company. Some will be required to do hard, physical labor. Others will operate complex equipment. Some employees will work in groups where they must have effective interpersonal skills and demonstrate teamwork. Others will work independently, relying on their own abilities. Managers will direct the work of others and make decisions and plans that can affect the entire company. New employees must be willing to follow directions and may have few decision-making responsibilities at first. Human resources must be able to work with the differences and unique capabilities of each employee and develop a workforce that is productive and efficient. There are seven major human resources goals. 1. Identify the personnel needs of the company. 2. Maintain an adequate supply of people to fill those future needs of the company. 3. Match abilities and interests with specific jobs. 4. Provide training and development to prepare people for their jobs and to improve their capabilities as job requirements change. 5. Develop plans to give personnel compensation for their work. 6. Protect the health and well-being of employees. 7. Maintain a productive and satisfying work environment. وزارة التعليم Think of the places you frequent regularly. What types of workers are visible? Are there "behind the scenes" employees? 4.1 Human Resources Basics | 117 Ministry of Education 2024-1446

Meeting the ongoing need for training and retraining employees is one of the many challenges a human resources manager might encounter. What are some others? Human Resources Activities The work of the human resources is divided into four categories: planning and staffing, compensation and benefits, performance management, and employee relations. Specific human resources activities for each of the categories are listed in Figure 4-2 on page 119. Planning and staffing activities are directed at identifying and filling all of the jobs in the company with qualified people. Compensation and benefits concerns planning and managing payroll, personnel records, and benefits programs. Performance management involves evaluating the work of employees and improving performance through training and development. Employee relations is responsible for maintaining a safe, healthy, and productive work environment for all employees. PLANNING & STAFFING ⚫ Job analysis • Recruitment and selection Job placement HUMAN RESOURCES ACTIVITIES COMPENSATION & BENEFITS •Wage and salary planning Benefits planning •Payroll, benefits, and employee records management PERFORMANCE MANAGEMENT • Performance assessment • Performance improvement Managing promotions, transfers, and terminations • EMPLOYEE RELATIONS ⚫ Health and safety planning • Labor relations • Employment law and policy enforcement • Organizational development FIGURE 4-2 Which activities do you think are the most important to the success of the business? Explain your answer. P118 Chapter 4 | Human Resources, Culture, and Diversity Ministry of Education 2024-1446 CHECKPOINT What are the seven major goals of human resources?

4.1 ASSESSMENT Key Concepts Determine the best answer. 1. Which of the following is not an example of a goods-producing industry? a. construction b. manufacturing c. healthcare d. mining 2. Which of the following is not a typical human resources activity? a. staffing b. employee relations c. performance management d. sales 3. A person whose work is more mental than physical and involves the handling and processing of information is a a. blue-collar worker b. human resources manager c. white-collar worker d. entrepreneur 4. Which of the following would not be a part of a company's human resources? a. managers b. full-time employees c. temporary employees d. All would be included as human resources. وزارة التعليم Ministry of Education 2024-1446 4.1 Human Resources Basics | 119

Make Academic Connections 5. Math The population of Saudi Arabia is approximately 36 million in 2022 (source: UN data). If 6 million people are not employed, What is the unemployment rate? 6. Art Create a collage on poster board that illustrates the many activities that are a part of human resources. Clip pictures from newspapers and magazines that represent the four broad categories of activities. Show your collage to other students and describe the activities you illustrated. 120 Chapter 4 | Human Resources, Culture, and Diversity Ministry of Education 2024-1446