SMALL BUSINESS MANAGEMENT Chapter 11 Human Resources Management SF Hardware Family caseFamily case Family Case Cali Restaurant Boxes R US

Complexities of managing family within your business.  SBM problems in a family-owned business are unique  One way to obtain objective control in a family-owned business is to hire an outsider to manage the day-to-day operations  Some family-owned businesses are plagued with high turnover among their nonfamily executives.  key employees leave because promotions are closed to them because they see relatives being promoted instead.  making sure that hiring standards are consistent across employees and that there are clear boundaries for each position. Policies should be communicated to all employees.

Human Resources Management and the Small Business  Planning  Hiring  Management

Planning for Human Resources  Determine Personnel Requirements  Set Organization Structure Report to one person Similar functions grouped together Limit span of control  Prepare Job Descriptions  Develop Personnel Policies job descriptions, working conditions, holidays and leaves, remuneration and pay, employee benefits, grievance procedure

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

Personnel Management  The Introduction Period The first week  The Probationary Period  Training On-the-job training, formal classroom training Cali Restaurant

Personnel Management  The Owner-Manager as Personnel Manager Leadership Style Time Management  Recognize the Importance of Time  Re-examine and Clarify Priorities  Analyze Present Time-Consuming Activities  Implement Time Management Principles

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

Handling Grievances  implement a method for expression grievances  assure that concerns will not affect relationships  minimal red tape  offer alternative methods for concerns (suggestion box)

Terminating employment A Laundromat employee with a known history of drug use, extreme violence, and sexual offenses assaulted a female customer. The employer was liable for negligent retention because it was reasonable for the employer to know that a customer using the Laundromat at night might be in danger in the presence of an employee with such a history.

What to Do at a Termination Meeting  The actual termination meeting should last 10 to 15 minutes  Prepare what you will say ahead of time.  Give an adequate reason for the discharge.  Seek out the employee's explanation or interpretation of events.  Make it clear that the decision is final.  Briefly run through the benefits.  Explain your job reference policy.  Collect what's yours from the employee.

Terminating an employee  Preserving the Employee's Dignity natural for a person being fired to feel resentment toward you and your business-- minimize it not good for your business reputation to have ex- employees bad-mouthing you all over town possibility that you might be sued by a disgruntled ex- employee times when fired employees become so distraught that they threaten to harm (or actually do harm) their former boss, coworkers or the business

Handling Grievances (cont.)  unionization and the small business  Labor Relations Act deals with wages, benefits and working conditions bargain in good faith no discrimination for participation binding terms and conditions interpretations resolved by an arbitrator

Business Plann Checklist  What major human resource issues does your business face, and how does your plan address these issues?  Have you included an employment schedule and wage costs in the appendix of your business plan?  Have you allowed for benefits in your labour plan?  Do you have job descriptions in place and plans to conduct annual performance appraisals?  Do your wage rates fit within the industry norms?  Outline your leadership style and your strengths and weaknesses.  How might a “virtual organization” work for you?  If you are starting out, at what point will you add a second or third person?

Personnel Management  Government Requirements and Assistance Federal Government  job entry program  skill shortage and skill investment programs  job development program  innovation programs  community future programs

Personnel Management Provincial Government  job discrimination  pay and employment equity  working conditions and compensation  employment standards  employment safety and health  workers ’ compensation  wage subsidy programs  provincial training programs

Personnel Management Municipal Government  licensing  zoning  operation hours  property taxes  building codes

Personnel Management  Recordkeeping for Employers Employee Remittance Number Payroll Book Monthly Remittance Year-End Statements  Contract Employees

Appendices  Interview Guide for a Small Business  Labour Legislation Jurisdiction  Provincial Labour Departments