Chapter 19

Nepotism

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

Open-book policy

Concept that key employees should be able to see and understand a firm's financials

Entrepreneurial Leadership

Innovation Operation Inspiration

Internet Recruiting

Method of recruiting that allows you to search a résumé database or post a job description to the Web;

Psychological contract

Refers to employees' beliefs about the promises between the employee and the firm

Factors Most Valuable to Employees

Teamwork Recognition Training Empowerment Contribution

Internet Recruiting

a small business owner who knows exactly what he or she wants can use filters to search vast numbers of résumés with pinpoint accuracy.

No decision is as important or complex as

decision to hire an employee

Performance Review (before formal review)

once a year to monitor your employee's job satisfaction, overall performance, and set career objectives Recognize performance, set goals, and set direction

Open-book policy

should have a direct stake in the strategy and success of the firm.

Open-book policy

should have a part in moving the numbers in the right direction

Meritocracy

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

Psychological contract

Beliefs are based on the perception that promises have been made in exchange for certain employee obligations

Off-the-job

Includes lectures, special study, videos, television conferences, case studies, role-playing, simulation, programmed instruction, and laboratory training

Virtual Employees

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

Entrepreneurial Leadership

really means administration Two key factors: Task and Person

Pay Review (before formal review)

reward your employees if they have performed all duties and met general requirements

Probationary Period

trial period in which an employee has temporary status before a formal offer to work full time is presented

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.

Employee fit

the match between the needs, expectations, and culture of the small business with the expectations and the skills of the individual employee

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.

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.

75%

businesses in U.S. consist of only the owner; no employees