MGMT - chapter 19

entrepreneurial leadership

- leadership really means administration - Two key factors: Task and Person - looks at how you operate as the chief executive of your business

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 - Usually, state law dictates how long such trials may last

3 components of operating as a chief executive (entrepreneurial leadership)

Looks at how you operate as chief executive - 3 components: - Innovation - Operation - Inspiration

Dividing up ownership and dividends

Owners of corporations - often receive the base of their compensation as a salary - receive a dividend from the corporation based on company profits and amount of stock owned Family members receive similar packages: - raises salaries higher than non-family members Create profit sharing plans or bonus system for non-family members to handle higher salaries of family members

Job analysis

Should include: - The reason the job exists - The mental or physical tasks involved - How the job will be done The qualifications needed

Nepotism (HR issues in fam bus)

- A management philosophy of selecting and promoting people based on family ties. Advantages: - involving people you know and hopefully trust in your business - being able to involve the person more completely (in terms of work time and family time) - having loyalty and support from your worker and their family in return.

Meritocracy (HR issues in fan bus)

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

Compensation, benefit and perks

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

internet recruiting

- Method of recruiting that allows you to search a résumé database or post a job description to the Web - use filters to search vast numbers of résumés with pinpoint accuracy. - The main contribution of a recruiting website has been to speed up hiring and vastly increase the accuracy of the job-search process

factors most valuable to employees

Teamwork - sharing ideas, common goal - communicating cross functionally help build stronger professional bonds which increase a sense of belonging and company fit. Recognition Training -increase your employee's capabilities, allow them to expand responsibilities, help increase job satisfaction Empowerment - giving employees permission to act, knowledge to act, skills to act - increases employee commitment Contribution - when giving meaningful work - feel like they are making a difference

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. - an underused, low-cost method - handled formally, with guidelines such as following up on all leads within 24 hours.

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. - if your company hits a downturn and promises cannot be met, employees are less likely to react badly since they have a better understanding of the firm's situation.

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. - do not lose time while they are learning

off the job

- Includes lectures, special study, videos, television conferences, case studies, role-playing, simulation, programmed instruction, and laboratory training - some may be too costly

Job description

- Defines and discusses all the essential knowledge, skills, and abilities that are needed to fill a position. - need to describe what kind of personality, experience, and education you believe a person who performs the job should have. 1. Start with a title 2. give a job overview - is not more than three to four sentences long and that it explains the level and basic nature of this job position. 3. defines duties and responsibilities - Be flexible in writing the duties and responsibilities to accommodate growth of the position. Be clear, concise, and complete. 4. knowledge, skills, abilities 5. Credentials and experience 6. special requirements

virtual employees

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

Sources of attracting employees

- Networking - internet recruiting - employee referral - company website - career service offices - professional groups - outsourcing - local churches and pastors - local high school for entry-level jobs - state unemployment offices

Hiring employees

- No decision is as important or complex - Adding employees increase amount of work that can be done (serving more customers, staying open longer) - 75% of small businesses have no employees - Shifts can vary to increase store hours - teamwork may increase efficiency - more customers can get individualized attention.

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 - Salary rewards, bonuses, and perks were not as important to employees as autonomy and personal growth - job security and responsibility were less important than benefits - denote strict limits on what you promise employees and how and when those promises will be delivered

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.

Evaluate job prospects

- Create same 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

Good HR practices

- The professional way to craft a consistent HR process depends on a set of key elements: - Transparent procedures with consistent application - Job basics - Job metrics - Task repair - Lines of communication - Clear termination rules - Line of appeal

Steps in developing a compensation plan

1. Determine whether you are hiring someone for an hourly or salaried position 2. Determine your organization's compensation philosophy 3. When times are good, the business can tie bonus dollars to goals achieved

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