1 SMALL BUSINESS MANAGEMENT Chapter Twelve Human Resources Management

2 Human Resources Management and the Small Business u Planning u Hiring u Management

3 Planning for Human Resources u Determine Personnel Requirements u Set Organization Structure u Prepare Job Descriptions u Develop Personnel Policies – job descriptions, working conditions, holidays and leaves, remuneration and pay, employee benefits, grievance procedure

4 The Hiring Process u Sources of Employees – from within, other businesses, employee referrals, advertising, employment agencies, educational institutions u The Screening Process – Application form, the employment interview, checking references, tests u Notification of the Hiring Decision

5 Personnel Management u The Introduction Period u The Probationary Period u Training – On-the-job training, formal classroom training,

6 Personnel Management u The Owner-Manager as Personnel Manager F leadership style – Time Management – Recognize the Importance of Time – Reexamine and Clarify Priorities – Analyze Present Time-consuming Activities – Implement Time Management Principles

7 Personnel Management u Motivation and Loyalty – working conditions, employee needs u Paying employees u Fringe benefits – job rotation, job sharing, working from home, flexible hours, employee suggestion systems u Controlling and Evaluating Performance – pinpoint, record, involve, coach, evaluate

8 Personnel Management u Handling Grievances – implement a method for expression grievances – assure that concerns will not affect relationships – minimal red tape – offer alternative methods

9 Personnel Management u Handling Grievances – unionization and the small business – Labor Relations Act F deals with wages, benefits and working conditions F bargain in good faith F no discrimination for participation F binding terms and conditions F interpretations resolved by a mediator

10 Personnel Management u Government Requirements and Assistance – Federal Government F job entry program F skill shortage and skill investment programs F job development program F innovation programs F Community Future Programs

11 Personnel Management – Provincial Government F Job Discrimination F Pay and Employment Equity F Working Conditions and Compensation F Employment Standards F Employment safety and Health F Workers’ Compensation F Wage Subsidy programs F Provincial Training Programs

12 Personnel Management – Municipal Government F licensing F zoning F operation hours F property taxes F building codes

13 Personnel Management u Recordkeeping for Employers – Employee Remittance Number – payroll Book – Monthly Remittance – Year-End Statements

14 Appendices u Interview Guide u Labour Legislation Jurisdiction u Provincial Labour Departments

15 Concept Checks u 1. Why is sound personnel management important for small business managers ? u 2. What is the purpose of the organizational chart ? u 3. Why is it important for small business to have written personnel policies ?

16 Concept Checks u 4. What are some policies which should be included in the policy manual ? u 5. What are potential sources of employees for small business ? u 6. What are the methods for screening employees ?

17 Concept Checks u 7. Why is it important that an interviewer use a common interview format for each applicant ? u 8. What are some of the general personnel management principles that an owner- manager can apply ? u 9. What can be done to improve the owner- manager’s use of time ?

18 Concept Checks u 10. What can be done to ensure that the employee has a smooth transition into a new job ? u 11. What are the two major principles of human relations management ? u 12. List the different types of compensation plans that may be used by a small business.

19 Concept Checks u 13. What are the fringe benefits available to the employee ? u 14. What are the five steps in the simplified M.B.O. process ? u !5. What are some of the important principles of grievance management ? u 16. What are the steps in administering a payroll for a small business ?