MGMT 321 Chapter 19

Employee Referall

an underused, low-cost method for finding workers that rewards your employees for recommending potential candidates that would be a great employee fit

Adverse Selection

as the venture grows, it becomes increasingly difficult to find the right employees, place them in the appropriate position, and provide adequate supervision

Open-Book Policy

concept that key employees should be able to see and understand a firm's financials

Virtual Employees

independent contractors who provide specialized business services or support from a distance

Internet Recruiting

method of recruiting that allows you to search a resume database or post a job description to the web

Moral Hazard

new hires typically do not have the same ownership incentives as the original founders, so new hires may not be as motivated as the founders to put in long hours and may even try to avoid work

Psychological Contract

refers to employees' beliefs about the promises between the employee and the firm

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