Entrepreneurship Chap 18

Nepotism

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

Meritocracy

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

Employee referral

an underused, low-cost method which 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, 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.

Job description

defines and discusses all the essential knowledge, skills, and abilities that are needed to fulfill the position.

On-the-job training

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

Virtual employees

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

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 wants can use filters to search vast numbers of résumés with pinpoint accuracy.

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.

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 part-time status before a formal offer to work full-time is presented.