1. Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter 11 PowerPoint Presentation by Thomas M c Kaig, Ryerson University Managing Human Resources 11

2. Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter 11 11-2 Looking Ahead After studying this chapter, you should be able to: 1. Discuss the entrepreneur’s leadership role. 2.Explain the importance of employee recruitment and list some sources that can be useful for finding suitable applicants. 3.Identify the steps to take in evaluating job applicants. 4.Describe the role of training for both managerial and nonmanagerial employees in a small firm. 5.Explain the various kinds of compensation plans and the differences between daywork and incentives. 6.Discuss the contract employees, labour unions, the formalizing of human resources management, and government regulations pertaining to employee protection.

3. Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter 11 11-3 Leading and Motivation Personal Involvement of the Entrepreneur  Creates a significant personal relationship with employees based on loyalty and respect.  Directly influences employees’ understanding of how the firm operates (e.g., its ethics).  Makes the firm attractive to new employees.

4. Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter 11 11-4 Leadership Leadership That Builds Enthusiasm  Empowerment Giving employees authority to make decisions or take actions on their own  Work teams Groups of self-managed employees with the freedom to function without close supervision  Benefits Workers are more satisfied with their working environment Productivity and profitability are enhanced

5. Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter 11 11-5 Recruiting Personnel (The Importance of People) The Need for Quality Employees  Employee performance affects the capability of the firm to service customer needs.  Employee performance affects profitability.  Payroll costs affect firm’s bottom line.  Quality of employees determines the long-term competitive potential of the firm.

6. Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter 11 11-6 Attracting Applicants to Small Firms Advantages of Employment in Small Firms  Quicker movement to decision-making levels of management  Greater managerial freedom  More opportunities for broad-based managerial experience  Flexibility in work scheduling and job sharing

7. Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter 11 11-7 Sources of Employees Walk-insWalk-ins SchoolsSchools Public Employment Agencies Executive Search Firms Employee Referrals Private Employment Agencies Internet Recruiting Help-Wanted Advertising Temporary Help Agencies

8. Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter 11 11-8 Job Description  A written summary of the essential duties required by a specific job Aids in personnel recruitment. Helps focus employees on their work. Provides direction in training. Serves as the basis for performance review. Job Specification  A list of the skills and abilities needed by the job holder to successfully perform a specific job Aids in selecting the most qualified job applicant.

9. Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter 11 11-9 Job Description for a Stock Clerk in Retail Food Store Title: Stock Clerk Primary Function: To stock shelves food products and other items Supervision Received: Works under direct supervision of store manager Supervision Exercised: None Duties: 1.Receive and store products in storage area. 2.Take products from storage, open outer wrapping, and place on store shelves. 3.Provide information and/or directions to customers seeking particular products or having other questions. 4.Monitor quantity of products on shelves and add products when supplies are low. 5.Perform housekeeping duties when special need arises—for example, when a container is broken or products fall on the floor. 6.Assist cashiers in bagging products as needed during rush periods. 7.Assist in other areas or perform special assignments as directed by the store manager. Title: Stock Clerk Primary Function: To stock shelves food products and other items Supervision Received: Works under direct supervision of store manager Supervision Exercised: None Duties: 1.Receive and store products in storage area. 2.Take products from storage, open outer wrapping, and place on store shelves. 3.Provide information and/or directions to customers seeking particular products or having other questions. 4.Monitor quantity of products on shelves and add products when supplies are low. 5.Perform housekeeping duties when special need arises—for example, when a container is broken or products fall on the floor. 6.Assist cashiers in bagging products as needed during rush periods. 7.Assist in other areas or perform special assignments as directed by the store manager. Figure 11 -1

10. Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter 11 11-10 Evaluating Prospects and Selecting Employees Steps in Recruiting Employees Application Forms Applicant Interview Reference Checking Applicant Testing Physical Examination

11. Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter 11 11-11 Training and Developing Employees Purposes of Training and Development  Prepare recruit to perform the duties of the job.  Improve the performance of current employees.  Prepare employees for career advancement.  Improve morale of current employees.  Serve as an inducement to potential applicants. Factors in Establishing a Training Program  Determining the need for training  Creating a plan for training  Setting a timetable for training  Providing employee counselling

12. Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter 11 11-12 PREPARE EMPLOYEES Put employees at ease. Place them in appropriate jobs. Find out what they know. Get them interested in learning. PREPARE EMPLOYEES Put employees at ease. Place them in appropriate jobs. Find out what they know. Get them interested in learning. PRESENT THE OPERATIONS Tell, show, and illustrate the task. Stress key points. Instruct clearly and completely. PRESENT THE OPERATIONS Tell, show, and illustrate the task. Stress key points. Instruct clearly and completely. TRY OUT PERFORMANCE Have employees perform the task. Have them tell, show, and explain. Ask employees questions and correct any errors. TRY OUT PERFORMANCE Have employees perform the task. Have them tell, show, and explain. Ask employees questions and correct any errors. FOLLOW UP Check on employees frequently. Tell them how to obtain help. Encourage questions. FOLLOW UP Check on employees frequently. Tell them how to obtain help. Encourage questions. Orientation for New Personnel

13. Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter 11 11-13 Types of Training and Development Development of Managers and Professionals Orientation of New Personnel Training to Improve Quality Training of Nonmanagerial Employees Training& Development to Improve Job Quality

14. Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter 11 11-14 Compensation and Incentives for Small Business Employees Financial Incentives  Keys to developing an effective bonus plan: Set attainable goals. Set meaningful goals. Bring workers in (employee participation). Keep targets moving. Aim carefully. …continued

15. Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter 11 11-15 Compensation and Incentives for Small Business Employees Profit Sharing  A percentage of profits is distributed to employees Fringe Benefits  Supplements to compensation designed to be attractive and beneficial to employees. Benefits are a substantial portion of payroll costs. Small firms tend to provide fewer benefits. Small firms are increasingly outsourcing the administration of their benefits programs. Cafeteria plans can be a part of benefits along with dental care and child-care re-imbursement

16. Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter 11 11-16 Employee Stock Ownership Plans and Profit Sharing Employee Stock Ownership Plans (ESOPs)  Plans through which a firm is sold either in part or in total to its employees. Employees’ performance is motivated by their sharing of ownership in the firm. Owners can cash out and withdraw without selling to outsiders. ESOPs offer tax advantages to owners and employees.

17. Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter 11 11-17 Factors that Contribute to Quality of Work Life Top three factors that employees felt contributed to a positive work environment are:  To be treated with respect  To have interesting work  To have good communication with co-workers

18. Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter 11 11-18 “Very Important” Job Factors Figure 11 -2

19. Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter 11 11-19 Special Issues in HRM Contract Employees  The “renting” of personnel from an organization that handles paperwork and administers benefits for those employees Leasing allows small firms to provide employee benefits. Leasing makes small firms subject to additional government regulations.  Professional Employment Organization A personnel-leasing company that places employees on its own payroll and then “rents” them to employers on a permanent basis. …continued

20. Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter 11 11-20 Special Issues in HRM Labour Unions  Most entrepreneurs prefer to operate independently and to avoid unionization  Most small businesses are not unionized  Unions primarily concentrate their efforts on larger companies. …continued

21. Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter 11 11-21 Special Issues in HRM Formalizing of Employer-Employee Relationships  Employee handbook contents Expression of company philosophy Recruitment Selection Training Vacations Grievances Discipline Performance reviews

22. Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter 11 11-22 Special Issues in HRM The Need for a Human Resource Manager  Conditions favouring the appointment of an HR manager: A substantial number of employees (100+) Unionized employees A high labour turnover rate A strong need to recruit skilled and professional employees Supervisors or operative employees in need of training Low employee morale Intense job market competition for personnel

23. Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter 11 11-23 Protecting Employee Rights Legal Protection of Employees  Legislation prohibiting discrimination based on race, colour, religion, sex, or national origin.  Protection from robbery, assault, and other crime

24. Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter 11 11-24 Harassment Policies Sexual harassment policy guidelines  Establish clear and meaningful policies regarding sexual harassment in the workplace.  Meet with employees and supervisory personnel to discuss the policies.  Investigate any and all complaints of sexual harassment fairly and thoroughly.  Take timely and appropriate action against all violators.

25. Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter 11 11-25 Employment Benefits and Employment Insurance (EI) Federal and provincial employment standard codes set out required working conditions such as maximum work hours, overtime pay, meal breaks, minimum wages, and parental and maternity leaves. Women on maternity leave are entitled to employment insurance (EI) as are those workers who become unemployed, as long as they have met certain requirements.