small business management

fair labor standards act

Fair Labor Standards Act (FLSA) A federal law which establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector (including small businesses) and in federal, state, and local governments.

internt recruitting

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.

advisory board

advisory board A group of formal or informal people offering advice and a sounding board to the owner or manager of a business. Unlike boards of directors, advisory boards (or single advisors) do not have legal or fiduciary responsibilities for the business.

employee fit

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

employee referral

employee referral An underused, low-cost method for finding workers that rewards your employees for recommending potential candidates who would be a great employee fit.

exempt

exempt A federal government descriptor of employees who are exempt from the Fair Labor Standards Act and are generally paid salaries.

job description

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

living wage

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.

meritocracy

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

nepotism

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

nonexempt

nonexempt A federal government descriptor of employees under the Fair Labor Standards Act who get an hourly wage and time-and-a-half for overtime.

on the job training

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

open-book policy Concept that key employees should be able 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.

probatonary period

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

psychological contract

psychological 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 (e.g., competitive wages, promotional opportunities, job training) in exchange for certain employee obligations such as giving of their energy, time, and technical skills.

vitrual employee

virtual employee An independent contractor who provides specialized business services or support from a distance, through the Internet, telephone, fax, or another method of communication.