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
