Chapter 18 - Human Resource Management - Small Business Considerations
Non-exempt
A federal government descriptor of employees under the Fair Labor Standards Act who get an hourly wage and time-and-a-half for overtime.
Exempt
A federal government descriptor of employees who are exempt from the Fair Labor Standards Act and are generally paid salaries.
Compensation, Benefits, and Perks
Bonuses and Long-Term Incentives Health Insurance Retirement Plans Perks
Open-book policy
Concept that key employees should be able to see and understand a firm's financials should have a part in moving the numbers in the right direction should have a direct stake in the strategy and success of the firm.
Entrepreneurial Leadership
Entrepreneurial Leadership: leadership really means administration Two key factors: Task and Person Looks at how you operate as chief executive - 3 components: Innovation Operation Inspiration
Three Guidelines for Training
Give your employees opportunities to use their new skills Make training an ongoing process Think of training as an investment as opposed to an expense
Off-the-job
Includes lectures, special study, videos, television conferences, case studies, role-playing, simulation, programmed instruction, and laboratory training.
Psychological contract
Refers to employees' beliefs about the promises between the employee and the firm Beliefs are based on the perception that promises have been made in exchange for certain employee obligations
Crafting a Job Description
Start with a title Give a job overview Define the duties and responsibilities Knowledge, skills, and abilities Credentials and experience Special requirements
Employee referral
An underused, low-cost method for finding workers that rewards your employees for recommending potential candidates that would be a great employee fit.
On-the-job training
Delivered to employees while they perform their regular jobs Techniques include orientations, job instruction training, apprenticeships, internships and assistantships, job rotation, and coaching.
Internet recruiting
Method of recruiting that allows you to search a résumé database or post a job description to the Web A small business owner who knows exactly what he or she wants can use filters to search vast numbers of résumés with pinpoint accuracy.
Attracting Employees - Sources
Networking Internet recruiting Employee referral Company websites Career service offices Professional groups Outsourcing Local churches and pastors Local high school for entry-level jobs State unemployment offices
Dividing Up Ownership and Dividends
Owners of corporations often receive the base of their compensation as a salary Family members receive similar packages Higher than non-family members Create profit sharing plans or bonus system for non-family members
Good Human Resource Practices for All Businesses
Transparent procedures with consistent application Job basics Job metrics Task repair Lines of communication Clear termination rules Line of appeal
Training
Where is training needed? What key areas need the most attention? What specifically must an employee learn in order to be more productive? Who needs to be trained?
Employee Fit
the match between the needs, expectations, and culture of the small business with the expectations and the skills of the individual employee
Probationary period
trial period in which an employee has temporary status before a formal offer to work full time is presented
Evaluating Job Prospects
Create same specific questions you will ask of all candidates Ask that person to demonstrate their skills Consider involving one or two other interviewers *Never hire a moderately qualified person just because you need someone now*
Job description
Defines and discusses all the essential knowledge, skills, and abilities that are needed to fill a position.
Virtual employees
Independent contractors who provide specialized business services or support from a distance, through the Internet, telephone, fax, or another method of communication.
Factors Most Valuable to Employees
Teamwork Recognition Training Empowerment Contribution
Living wage
The amount needed for a person (or family of a particular size) to meet the basic necessities of life from a single job.
Writing a Job Description - Job Analysis
The job itself The tasks of the job The critical tasks The critical competencies