Entrepreneurial Management Chapter #18

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 -Put what you promise in writing!

Guidelines for Training

1. Give your employees opportunities to use their new skills 2. Make training an ongoing process 3. Think of training as an investment (as opposed to an expense)

Core Values of Business

1. Mission 2. Money 3. Method

Most valuable factors to employees

1. Teamwork 2. Recognition 3. Training 4. Empowerment 5. Contribution 6. Communication

Guidelines for virtual employees

1. hire self-disciplined and motivated employees 2. develop system of tasks, lists, schedules, and goals 3. maintain connections with workers 4. trust your employees are doing their work well

Entrepreneurial Leadership

1. innovation 2. operation 3. inspiration

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.

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.

Fair Labor Standards Act (FLSA)

Federal law that establishes a minimum wage and requirements for overtime pay and child labor

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.

Bonuses and Long-term Incentives

Profit-sharing plans, stock options, or stock grants provide long-term incentives to employees and also help retain employees

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

Exempt

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

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 (or single advisors) do not have legal or fiduciary responsibilities for the business.

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 most capable person for the job

401(k) plan

a tax-deferred investment and savings plan that acts as a personal pension fund for employees

Job Description

a written description of the basic tasks, duties, and responsibilities required of an employee holding a particular job

On-the-job training

delivered to employees while they perform their regular jobs; techniques include orientations, job instructions training, apprenticeships, internships and assistantships, job rotation, and coaching

Uniformed Services Employment and Reemployment Rights Act (USERRA)

gives veterans rights to jobs they left behind when called to service

Patient Protection and Affordable Care Act

health care reform law passed in 2010 that includes incentives and penalties for employers providing health insurance as a benefit

Perks

privileges, services, or even tangible items given to employees as part of the overall compensation and benefits package

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

Federal Insurance Contributions Act (FICA)

Federal law that requires workers and their employers to contribute to Social Security and Medicare

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.

Union Contract

The written agreement between management and union workers which agree to certain conditions that both must legally follow.

Creating a Job Description

write down job title and to whom that person will report. Then develop a job statement or summary describing the position's major and minor duties. List any educational requirements, desired experience, and specialized skills. List any physical or other special requirements with the job.

Key Elements of a Consistent HR Process

-transparent procedures with consistent application --> there should be (publicly known)procedures in place to handle HR issues -job basics --> every job should consist of a job description -job metrics --> have proper metric for measuring how well an employee is working -task repair --> what will you do when employees make mistakes???? -lines of communication --> open door policy or suggestion box -clear termination rules --> have a method and procedure for firing employees that is the same for everyone -lines of appeal --> hear out the employee who has made a mistake or failed to meet metric