Entrepreneurship and small business management chapter 19

Entrepreneurship and Small Business Management Chapter 19 Human Resources and Management... 19 Performance Objectivescontinued  Develop your organizational culture.. Organizational Cult

Entrepreneurship and Small

Business Management

Chapter 19

Human Resources and Management

Ch 19 Performance Objectives

 Describe the 10 basic tasks handled by managers.

 Recruit your employees.

 Know where and how to find qualified job candidates.

Ch 19 Performance Objectives

(continued)

 Develop your organizational culture.

 Determine your organizational structure.

 Understand the functions of human

resources management.

Tasks Handled by Managers

 Planning

 Strategic

 Tactical

 Operational

 Organizing

 Leading

 Directing

 Staffing

 Controlling

 Coordinating

 Representing

 Innovating

 Motivating

Ways to Add Employees

to the Business

 Bring people in as partners.

 Hire experts to accomplish specific tasks

on a contractual or hourly basis.

 Hire someone as a part-time or full-time employee.

Recruiting Process

1 Defining the job

 Job profile identifies the knowledge,

skills, and abilities required to perform the specific tasks of the job

 Position description includes:

 Job profile information

 Reporting and working relationships

 Goals and objectives of the position

 Any special working conditions/requirements

Recruiting Process (continued)

2 Posting and advertising the job

3 Screening resumes and/or applications

4 Assessing skills

5 Interviewing candidates

6 Checking references

7 Negotiating compensation

8 Hiring

9 Orientation

Aspects of the Interview

 Welcome and icebreaker

 Greeting and “small talk” to put person at ease

 Overview of company and position

 Formal interview

 Core questions that address experiences/actions

 Noting what candidate avoids or does not say

 Informal interview

 Typically peer-to-peer

 Less “official” setting (coffee break or meal)

Finding Job Candidates

 Advertising (internal and external)

 Online postings

 Campus recruiting

 Job fairs

 Executive and retained search firms

Organizational Culture

 Employees’ shared beliefs, values, and

attitudes

 Can be strategically developed/managed

 Conveyed though words, actions, and

structures

 Should combine best business practices

with the desired work environment

Organizational Structure

 Structure evolves as a company grows:

 From simple line organizations (each person

reports to one supervisor)

 To line and staff organizations (include

specialists who assist in management)

 Managerial spans of control (number of

direct reports) become more defined.

 The chain-of-command (reporting

hierarchy) becomes more distinct.

Management Organizational Chart for a Typical Small Business

Encourage Great Work Performance

 Find the right people for the right jobs.

 Provide fair compensation and good working

conditions.

 Share your vision for the company.

 Give incentives, such as profit sharing.

 Offer employees control over their work.

 Provide training/development opportunities.

 Communicate expectations and goals clearly.

 Supply ongoing feedback and recognition.

Communicating Effectively

 Face-to-face communication

 Incorporates verbal and non-verbal messages

 Requires using words/terms that are meaningful

to your audience

 Listening

 Grapevine—informal channels of communication

 Active listening—focus solely on what the other

person is saying, and then validate understanding

 Written communication (formal and informal)

Human Resources

 Company department responsible for:

 Staffing

 Training and development

 Compensation and benefits

 Employee relations

 Organization development

 Other names include HR, Human

Capital, and Personnel

Organizational Development

 Organizational structure

 Identify and analyze different options

 Establish the appropriate structure

 Help manage framework transitions

 Employee retention

 Develop programs that help build morale

 Create mentoring opportunities

 Provide professional development

 Succession planning for filling positions when employees are promoted, retire, or resign

Labor Laws and Taxes

 Payroll Taxes: Must be withheld from employee

earnings, and then paid to local, state, and federal

government as wage taxes and Social Security (FICA)

 Equal Pay Act of 1963: Requires employers to pay

men and women the same amount for the same work

 Fair Labor Standards Act: Requires employers to

pay at least minimum wage and not hire anyone full-time who is under 16

 Antidiscrimination laws: Protect employees from

discrimination due to age, race, religion, national

origin, color, gender, and physical disability

Performance Appraisal

 Formal process used to evaluate and

support employee performance

 Provides opportunity to:

 Set goals

 Assess progress

 Identify opportunities for improvement

 Plan for individual growth and development

 Provide performance feedback

Useful HR Strategies

 Diversity—Encourage gender and ethnic

diversity.

 Benchmarking—Evaluate how overall

employee performance compares to the

competition.

 Retention—Develop programs to

encourage valued employees to stay with

the company.

Firing and Laying Off Employees

 Unsupported firing exposes your company to wrongful termination lawsuits.

 Conduct regular employee performance

reviews so you have proof of poor

performance.

 If an employee violates rules, inform him/her

in writing and keep a copy for your records.

 If you must lay off employees, offer severance (pay that is continued for a limited time as

compensation for being let go).