Chapter 19: Human Resource Management and Small Business Considerations

Writing a Job Description

-Start with title -Give a job overview -Define the duties and responsibilities -Knowledge, skills, and abilities -Credentials and experience -Special requirements

Attracting Employees - Sources

-networking -internet recruiting -employee referral -company websites -career service offices -professional groups -outsourcing -local churches and pastors -local high schools for entry-level jobs -state unemployment offices

Hiring Employees

-no decision is as important or complex as the decision to hire an employee. -of the 25.4 million businesses in the US in 2004, over 19.5 million had no employees. -adding employees increase amount of work that can be done- serving more customers, staying open longer.

Dividing Up Ownership and Dividends

-owners of corporations often receive the base of their compensation as a salary. -family members receive similar packages +higher than non-family members +create profit sharing plans or bonus system for non-family members

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.

Good Human Resource Practices

-transparent procedures with consistent application -job basics -job metrics -task repair -lines of communication -clear termination rules -line of appeal

nepotism

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

entrepreneurial leadership

leadership really means administration -two key factors: Task and Person -looks at how you operate as chief executive - 3 components: -Innovation -Inspiration -Operation

Compensation, Benefits, and Perks

-bonuses and long-term incentives -health insurance -retirement plans -perks

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.

Evaluating Job Prospects

-create some specific questions you will ask of all candidates. -ask that person to demonstrate their skills. -consider involving one or two other interviewers. -never hire a moderately qualified just because you need someone now.

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.

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.

Training Your Employees

-where is training needed? -what key areas need the most attention? -what specifically must an employee learn in order to be more productive? -who needs to be trained?

Three 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.

Factors Most Valuable to Employees

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

meritocracy

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

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.

off-the-job

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

job analysis

includes: -the reason the job exists -the mental or physical tasks involved -how the job will be done -the qualifications needed

virtual employees

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

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.

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.