Chapter Assessment - Introduction To Business - ثاني ثانوي

Chapter 4 Review Business Concepts 4.1 Human Resources Basics Assessment • There are more than 16 million people in the Saudi workforce. Changes in the economy may require employees to develop new skills and receive additional training. Consumer preferences, economic conditions, new technology, and business competition are strong influences on the workforce. Human resources are the people who work for a business. The major goals of human resources managers are to (1) identify the personnel needs, (2) maintain a supply of people to fill needs, (3) match abilities and interests with specific jobs, (4) provide training and development, (5) develop compensation plans, (6) protect the health and well-being of employees, and (7) maintain a satisfying work environment. The activities of human resources managers are planning and staffing, performance management, compensation and benefits, and employee relations. 4.2 Managing Human Resources Human resources management ensures that needed employees are available and that they are productive, paid, and satisfied with their work. If human resources management does its job well, the company will have productive and motivated employees who do their jobs well and contribute to a successful, profitable business. • Compensation is the amount of money paid to an employee for work performed. Compensation is made up of two parts. Salary and wages are direct payment to an employee for work completed. Compensation in forms other than direct payment for work is known as benefits. The manager regularly evaluates the work of all employees. Performance evaluations focus on the specific job duties of each employee as well as the important work qualities and standards expected of all employees. 4.3 Organizational Culture and Workforce Diversity An organizational culture is the environment in which people work. It is made up of the atmosphere, as well as the behaviors, beliefs, and relationships among people. An organizational culture shows people how they will be treated and how they are expected to treat others. A positive organizational culture respects the demands on employees from outside of the job. • Prospective employees and customers are attracted to work and shop in businesses where people like them work. Companies that build a diverse workforce see several benefits. The benefits can be classified as organizational, individual, and societal. Think Critically About Business 1. Why are service-providing industries growing more rapidly than goods-producing industries? What effect will this trend have on the skills people need for careers in the next 10 years? 2. Provide several examples of the effect of consumer preferences on employment. What are some jobs that have increased and decreased in importance due to consumer demands? 138 Chapter 4 | Human Resources, Culture, and Diversity Ministry of Education 2024-1446

3. Small businesses usually cannot offer the same levels of wages and benefits to employees as large businesses. In what other ways can small businesses compete to hire and retain highly qualified employees? 4. In addition to offering health insurance benefits, what types of activities should businesses undertake to protect and improve the health and safety of their employees? 5. What are the advantages and disadvantages for a company in hiring part-time and temporary employees rather than full-time and permanent employees? 6. You are the economic development director for your community. Identify three service-providing companies that you believe could be successful in your community and offer the potential for many new jobs. Develop a short computer slide presentation for your board of directors introducing your selections and justifying your choices. 7. You are the human resources manager for a company and want to hire an accountant. List three good recruiting sources and justify your choices. If you wanted to hire a web designer, would your sources change? Why or why not? 8. Make a list of three benefits you would personally like to see a company offer its employees. How do you believe your list might change as your life situation changes? 9. Do you believe the physical conditions or psychological atmosphere of a business are more important to maintaining an effective work environment? Justify your choice. 10. In what ways can work committees bring positive change to the relationship between management and workers? وزارة التعليم Ministry of Education 2024-1446 Assessment | 139

Develop Your Business Language Match the terms listed with the definitions. Term 11. benefits 12. compensation 13. diversity 14. downsizing 15. incentive systems 16. job analysis 17. work committee 18. organizational culture 19. outsourcing 20. promotion 21. salary and wages 22. termination 23. transfer 24. work environment 25. workforce Your Choice Definition a. Ends the employment relationship between a company and an employee. b. Removes work from one company and sends it to another company that can complete it at a lower cost. c. Amount of money paid to an employee for work performed. d. Environment in which people work, made up of the atmosphere, behaviors, beliefs, and relationships. e. Compensation in forms other than direct payment for work. f. The assignment of an employee to another job in the company with a similar level of responsibility. g. The comprehensive inclusion of people with differences in personal characteristics and attributes. h. A group of employees who act as a link between management and workers to improve working conditions and deal with concerns like health and safety issues. i. All the people 15 years and older who are employed or who are looking for a job. j. Physical conditions and psychological atmosphere in which employees work. k. The advancement of an employee to a position with greater responsibility. I. Connect the amount of compensation to the quality or quantity of an employee's performance. m. Direct payment to an employee for work completed. n. A planned reduction in the number of employees needed in a firm in order to reduce costs and make the business more efficient. o. A study of a job to identify in detail the specific job duties and skill requirements. Make Academic Connections 26. Math A small business budgets SAR 80 per employee per year for training costs. An additional SAR 50 is provided for the first year of training for each new employee. Last year the firm started with 35 employees and added 6 new employees. Both parts of the training budget have been increased by 10% for this year. a. What was the total cost of training for last year? b. What percentage of that amount was spent on new employee training? c. With the proposed increase, how much will be spent for training each experienced employee and each new employee this year? d. What will be the total cost of training for all employees if four new employees are hired this year? 140 Chapter 4 | Human Resources, Culture, and Diversity Ministry of Education 2024-1446

27. Read Companies participate in community activities to demonstrate that they value diversity. Find a news article that relates to a community activity or service project completed by a company in your city. Read the article and outline the major concepts presented in the article using bullet points. Include a properly formatted citation for your source. Possible sources include printed and online versions of newspapers, magazines, and business or organization websites. 28. Advertising Use the Internet or a newspaper to locate classified advertising for employment opportunities. Select a job of interest to you and find detailed listings from three different companies for that type of job. Develop a table that compares the three opportunities based on job duties, wages or salary and benefits, and work environment of the company. 29. Math Naima works for a store that pays her an hourly wage of SAR 10 plus a commission of 2% on all sales over SAR 500 per day. Her hours worked and daily sales for the past week are shown in the table. a. How much did Naima earn in base salary and commission for each of the days she worked? b. How much was the total of her base salary for the week? C. How much was the total of her commissions for the week? d. What were Naima's total earnings for the week? وزارة التعليم Ministry of Education 2024-1446 Sunday 6 hrs SAR 735 total sales Monday 4 hrs SAR 320 total sales Tuesday 5 hrs SAR 570 total sales Wednesday 3 hrs SAR 450 total sales Thursday 8 hrs SAR 1,050 total sales Assessment | 141

Make Your Case Saud has operated a garden care business for many years. The business offers landscaping services including seeding and sodding lawns, applying chemicals and fertilizer, and regular lawn mowing. Saud has 25 employees. Many of them have worked for him for 5 to 10 years. He usually hires two or three new employees each year. In the past, Saud was not concerned about the skills of new employees. He prefers to find people who are interested in the work and want to learn. Yet the machinery he uses is getting more complex, and employees must know a great deal about safe handling of chemicals, detecting plant diseases, and effective lawn care. The local college has a two-year degree program in garden management. Saud is deciding whether to continue his present hiring procedure of allowing new employees to learn on the job, develop a training program to be offered to all employees, or hire only people who have completed the college program. 30. What are the advantages and disadvantages of each of the choices Saud is considering? 31. If you were Saud's human resources manager, what choice would you recommend? Why? Interactions and Connections 32. Identify several people from your community who work full time. Ask them their views on the importance of maintaining a balance between their work life and their personal life. Ask them to identify ways they believe the company they work for supports or does not support a balance in work-life relationships. Based on your discussions, do you believe most of the companies are or are not sensitive to work-life relationships? 33. Each year Fortune magazine publishes a list of the "100 Best Companies to Work For." This is not the only list that ranks employers. Several organizations, magazines, and websites publish lists of outstanding employers in specific industries or for particular types of workers. Because each set of rankings is based on different criteria, the companies appearing on each list may be different. Looking at the lists and the criteria used to rank employers can provide insight into these businesses for consumers, investors, and potential employees. They give particular insight into companies that appear to be working hard to develop and maintain a positive organizational climate and work environment. Think about the criteria you might use to rank companies as the best places to work. Locate the website of an organization or magazine that provides an annual ranking of the best places to work. 142 Chapter 4 | Human Resources, Culture, and Diversity Ministry of Education 2024-1446

Choose a company from the list you found and visit the company's website. Describe your findings and offer your opinion about this company as a great place to work based on the criteria that are most important to you. International Business Plan Event Opening a business in another part of the world presents a unique challenge that requires a detailed business plan. The business plan is used to convince potential investors to financially support the international business idea. This event may be completed by one to three students. Participants will conduct research for a specific international location, determine a business/product/service needed for the selected country, and prepare a business plan to convince investors about the soundness of the international plan. Participants will prepare a business plan limited to 30 pages that includes an introduction for the business plan, trade area and cultural analysis, planned operation, and planned financing for the international business. The body of the business plan must be typed following the sequence outlined. Participants may bring a copy of the written entry or note cards and appropriate visual aids to use during the presentation. Participants have 10 minutes to present their international business plan. Five additional minutes are allotted for the judges or audience members to ask questions about the business plan. Performance Indicators Evaluated Demonstrate critical thinking and problem-solving skills associated with starting an international business. • Work effectively as a team. • Demonstrate an understanding of the basic steps involved in starting a business in an international setting. • Analyze information to derive data necessary for a convincing business plan. Present facts that support the rationale for locating a business in another part of the world. Think Critically 1. Why is it important to research the culture of the location for a potential international business? 2. Why is it more difficult to obtain domestic funding for an international business idea? 3. What demographics should be considered when locating a business in another part of the world? 4. What sources can be used to locate solid financial information when developing an international business? 5. Why might investors be reluctant to support an international business idea during a recession? وزارة التعليم Ministry of Education 2024-1446 Assessment | 143