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 Entrepreneurship and Small Business Management, 1/e © 2012 Pearson Education, Upper Saddle River, NJ 07458 Ch 19 Performance Objectives (continued)  Develop your organizational culture  Determine your organizational structure  Understand the functions of human resources management Entrepreneurship and Small Business Management, 1/e © 2012 Pearson Education, Upper Saddle River, NJ 07458 Tasks Handled by Managers  Planning        Strategic Tactical Operational    Organizing Leading Directing Entrepreneurship and Small Business Management, 1/e   Staffing Controlling Coordinating Representing Innovating Motivating © 2012 Pearson Education, Upper Saddle River, NJ 07458 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 Entrepreneurship and Small Business Management, 1/e © 2012 Pearson Education, Upper Saddle River, NJ 07458 Recruiting Process 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 Entrepreneurship and Small Business Management, 1/e © 2012 Pearson Education, Upper Saddle River, NJ 07458 Recruiting Process (continued) Posting and advertising the job Screening resumes and/or applications Assessing skills Interviewing candidates Checking references Negotiating compensation Hiring Orientation Entrepreneurship and Small Business Management, 1/e © 2012 Pearson Education, Upper Saddle River, NJ 07458 Aspects of the Interview  Welcome and icebreaker    Formal interview    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) Entrepreneurship and Small Business Management, 1/e © 2012 Pearson Education, Upper Saddle River, NJ 07458 Finding Job Candidates  Advertising (internal and external)  Online postings  Campus recruiting  Job fairs  Executive and retained search firms Entrepreneurship and Small Business Management, 1/e © 2012 Pearson Education, Upper Saddle River, NJ 07458 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 Entrepreneurship and Small Business Management, 1/e 10 © 2012 Pearson Education, Upper Saddle River, NJ 07458 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 Entrepreneurship and Small Business Management, 1/e 11 © 2012 Pearson Education, Upper Saddle River, NJ 07458 Management Organizational Chart for a Typical Small Business Entrepreneurship and Small Business Management, 1/e 12 © 2012 Pearson Education, Upper Saddle River, NJ 07458 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 Entrepreneurship and Small Business Management, 1/e 13 © 2012 Pearson Education, Upper Saddle River, NJ 07458 Communicating Effectively  Face-to-face communication    Listening    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) Entrepreneurship and Small Business Management, 1/e 14 © 2012 Pearson Education, Upper Saddle River, NJ 07458 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 Entrepreneurship and Small Business Management, 1/e 15 © 2012 Pearson Education, Upper Saddle River, NJ 07458 Organizational Development  Organizational structure     Employee retention     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 Entrepreneurship and Small Business Management, 1/e 16 © 2012 Pearson Education, Upper Saddle River, NJ 07458 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 Entrepreneurship and Small Business Management, 1/e 17 © 2012 Pearson Education, Upper Saddle River, NJ 07458 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 Entrepreneurship and Small Business Management, 1/e 18 © 2012 Pearson Education, Upper Saddle River, NJ 07458 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 Entrepreneurship and Small Business Management, 1/e 19 © 2012 Pearson Education, Upper Saddle River, NJ 07458 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) Entrepreneurship and Small Business Management, 1/e 20 © 2012 Pearson Education, Upper Saddle River, NJ 07458  ... distinct Entrepreneurship and Small Business Management, 1/e 11 © 2012 Pearson Education, Upper Saddle River, NJ 07458 Management Organizational Chart for a Typical Small Business Entrepreneurship and. .. structure  Understand the functions of human resources management Entrepreneurship and Small Business Management, 1/e © 2012 Pearson Education, Upper Saddle River, NJ 07458 Tasks Handled by Managers...Ch 19 Performance Objectives  Describe the 10 basic tasks handled by managers  Recruit your employees  Know where and how to find qualified job candidates Entrepreneurship and Small Business