Chapter 19 Entrepreneurship

Virtual Employees

Independent contractors who provide specialized business services or support from a distance, through the internet, telephone, fax, or another method of communication.

Internet Recruiting

Method of recruiting that allows you to search a resume 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 resumes with pinpoint accuracy.

Employee Fit

The match between the needs, expectations and culture of the small business with the expectations and 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.

Nepotism

A management philosophy of selecting and promoting people based on family ties.

Meritocracy

A management philosophy of selecting and promoting people based solely on their being the most capable person for the job.

Pyschological contract

Refers to employees' beliefs about the promises between the employee and the firm. These beliefs are based on the perception that promises have been made in exchange for certain employee obligations such as giving of their energy, time, and technical skills.

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.

Job Description

Defines and discusses all the essential knowledge, skills, and abilities that are needed to fill a position.

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.

Open-Book Policy

Concept that key employees should be albe to see and understand a firm's financials, that they should have a part in moving the numbers in the right direction, and that they should have a direct stake in the strategy and success of the firm.

Living Wage

The amount needed for a person to meet the basic necessities of life from a single job.