Entrepreneurship and small business management chapter 19

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.

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Ch. 19 Performance
Objectives
(continued)


Develop your organizational culture.



Determine your organizational
structure.



Understand the functions of human
resources management.

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Tasks Handled by
Managers



Planning
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Strategic
Tactical
Operational


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Organizing
Leading
Directing

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Staffing
Controlling
Coordinating
Representing
Innovating
Motivating

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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 fulltime employee.

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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:

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Job profile information
Reporting and working relationships
Goals and objectives of the position
Any special working
conditions/requirements

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Recruiting Process
(continued)
2.
3.
4.
5.
6.
7.
8.
9.

Posting and advertising the job
Screening resumes and/or applications
Assessing skills
Interviewing candidates
Checking references
Negotiating compensation
Hiring
Orientation

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Aspects of the Interview


Welcome and icebreaker

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Formal interview
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Greeting and “small talk” to put person at ease
Overview of company and position
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)

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© 2012 Pearson Education, Upper Saddle River, NJ
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Finding Job Candidates


Advertising (internal and external)



Online postings



Campus recruiting



Job fairs



Executive and retained search firms

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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

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Organizational Structure


Structure evolves as a company grows:
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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.

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Management Organizational
Chart for a Typical Small
Business

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Encourage Great Work

Performance




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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.

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Communicating Effectively


Face-to-face communication
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Listening
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Incorporates verbal and non-verbal messages
Requires using words/terms that are meaningful to
your audience
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)

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Human Resources


Company department responsible for:

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Staffing
Training and development
Compensation and benefits
Employee relations
Organization development

Other names include HR, Human
Capital, and Personnel

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Organizational
Development


Organizational structure

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Employee retention

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Identify and analyze different options
Establish the appropriate structure
Help manage framework transitions
Develop programs that help build morale
Create mentoring opportunities
Provide professional development

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

resign

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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 fulltime who is under 16



Antidiscrimination laws: Protect employees from
discrimination due to age, race, religion, national
origin, color, gender, and physical disability

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Performance Appraisal




Formal process used to evaluate and
support employee performance
Provides opportunity to:
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Set goals
Assess progress
Identify opportunities for improvement

Plan for individual growth and development
Provide performance feedback

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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.

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© 2012 Pearson Education, Upper Saddle River, NJ
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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).

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© 2012 Pearson Education, Upper Saddle River, NJ
07458.