Chapter 18 - Human Resource Management - Small Business Considerations

Non-exempt

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.

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.

Entrepreneurial Leadership

Entrepreneurial Leadership: leadership really means administration Two key factors: Task and Person Looks at how you operate as chief executive - 3 components: Innovation Operation Inspiration

Three Guidelines for Training

Give your employees opportunities to use their new skills Make training an ongoing process Think of training as an investment as opposed to an expense

Off-the-job

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

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

Crafting a Job Description

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

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.

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 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.

Attracting Employees - Sources

Networking Internet recruiting Employee referral Company websites Career service offices Professional groups Outsourcing Local churches and pastors Local high school for entry-level jobs State unemployment offices

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

Good Human Resource Practices for All Businesses

Transparent procedures with consistent application Job basics Job metrics Task repair Lines of communication Clear termination rules Line of appeal

Training

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?

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

Evaluating 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 person just because you need someone now*

Job description

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

Virtual employees

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

Factors Most Valuable to Employees

Teamwork Recognition Training Empowerment Contribution

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.

Writing a Job Description - Job Analysis

The job itself The tasks of the job The critical tasks The critical competencies