18-1 Small Business Management, 11th edition Longenecker, Moore, and Petty © 2000 South-Western College Publishing Chapter 18 Managing Human Resources In the Spotlight: Die Cut Technologies In the Spotlight: Die Cut Technologies

18-2 Small Business Management, 11th edition Longenecker, Moore, and Petty © 2000 South-Western College Publishing Learning Objectives: Chapter Explain the importance of employee recruitment and list some sources that can be useful in finding suitable applicants. 2. Identify the steps to take in evaluating job applicants. 3. Describe the role of training for both managerial and nonmanagerial employees in a small firm. 4. Explain the various types of compensation plans and the differences between daywork and incentives. 5. Discuss the human resource issues of employee leasing, legal protection, labor unions, and the formalizing of employer employee relationships.

18-3 Small Business Management, 11th edition Longenecker, Moore, and Petty © 2000 South-Western College Publishing Sources of Employees 1.Walk-ins 2. Schools 3. Public employment offices 4.Private employment agencies 5. Employee referrals 6. Help-wanted advertising 7.Temporary help agencies

18-4 Small Business Management, 11th edition Longenecker, Moore, and Petty © 2000 South-Western College Publishing Steps in Evaluating Applicants 1. Review application form. 2. Interview. 3. Check references. 4. Test. 5. Obtain physical exam. Application for Employment

18-5 Small Business Management, 11th edition Longenecker, Moore, and Petty © 2000 South-Western College Publishing Asking Questions to Draw Out the Interviewee Use“Give an example of a time when you were criticized and explain how you reacted.” vs. “Can you accept criticism?” Use“What is your idea of success?” vs. “Are you ambitious?” Use“How would you describe your last supervisor? How were you alike, and how were you different?” vs. “Did you get along with your last supervisor?”

18-6 Small Business Management, 11th edition Longenecker, Moore, and Petty © 2000 South-Western College Publishing Steps in Job Instruction Training 1. Prepare the employee. 2.Present the operations. 3.Try out the performance. 4.Follow up.

18-7 Small Business Management, 11th edition Longenecker, Moore, and Petty © 2000 South-Western College Publishing Factors in Developing Managerial and Professional Employees 1. Determine the need for training. 2. Develop a plan for training. 3. Establish a timetable. 4. Counsel employees.

18-8 Small Business Management, 11th edition Longenecker, Moore, and Petty © 2000 South-Western College Publishing Keys to Developing Effective Bonus Plans 1. Set attainable goals. 2. Set meaningful goals. 3. Bring workers in. 4. Keep targets moving. 5. Aim carefully.

18-9 Small Business Management, 11th edition Longenecker, Moore, and Petty © 2000 South-Western College Publishing What Employee-Leasing Companies Offer to Small Firms 1.Better health insurance 2.Preparation of paychecks 3.Payment of payroll taxes 4.Analysis of government regulations 5.Preparation of government reports 6.Monitoring of vacation and sick days

18-10 Small Business Management, 11th edition Longenecker, Moore, and Petty © 2000 South-Western College Publishing Legal Protection of Employees Civil Rights Act Occupational Safety and Health Act Fair Labor Standards Act Family and Medical Leave Act

18-11 Small Business Management, 11th edition Longenecker, Moore, and Petty © 2000 South-Western College Publishing Conditions Favoring Appointment of a Human Resource Manager 1.A large number of employees 2.A union 3.High turnover 4.A need for skilled and professional personnel 5.A training need 6.Low morale 7.Keen competition for personnel