SMALL BUSINESS
MANAGEMENT
Chapter Twelve
Human Resources Management
1
Human Resources Management and
the Small Business
 Planning
 Hiring
 Management
2
Planning for Human Resources
 Determine
Personnel Requirements
 Set Organization Structure
 Prepare Job Descriptions
 Develop Personnel Policies
–
job descriptions, working conditions, holidays and
leaves, remuneration and pay, employee benefits,
grievance procedure
3
The Hiring Process
 Sources
–
from within, other businesses, employee referrals,
advertising, employment agencies, educational
institutions
The
–
of Employees
Screening Process
Application form, the employment interview, checking
references, tests
 Notification
of the Hiring Decision
4
Personnel Management
 The
Introduction Period
 The Probationary Period
 Training
–
On-the-job training, formal classroom training,
5
Personnel Management
 The
Owner-Manager as Personnel Manager
 leadership
–
–
–
–
–
style
Time Management
Recognize the Importance of Time
Reexamine and Clarify Priorities
Analyze Present Time-consuming Activities
Implement Time Management Principles
6
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
7
Personnel Management
 Handling
–
–
–
–
Grievances
implement a method for expression grievances
assure that concerns will not affect relationships
minimal red tape
offer alternative methods
8
Personnel Management
 Handling
–
–
Grievances
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 a mediator
9
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
10
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
11
Personnel Management
–
Municipal Government
 licensing




zoning
operation hours
property taxes
building codes
12
Personnel Management
 Recordkeeping
–
–
–
–
for Employers
Employee Remittance Number
payroll Book
Monthly Remittance
Year-End Statements
13
Appendices



Interview Guide
Labour Legislation Jurisdiction
Provincial Labour Departments
14
Concept Checks
 1.
Why is sound personnel management
important for small business managers ?
 2.
What is the purpose of the organizational
chart ?
 3.
Why is it important for small business to
have written personnel policies ?
15
Concept Checks
 4.
What are some policies which should be
included in the policy manual ?
 5.
What are potential sources of employees
for small business ?
 6.
What are the methods for screening
employees ?
16
Concept Checks
 7.
Why is it important that an interviewer
use a common interview format for each
applicant ?
 8. What are some of the general personnel
management principles that an ownermanager can apply ?
 9. What can be done to improve the ownermanager’s use of time ?
17
Concept Checks
 10.
What can be done to ensure that the
employee has a smooth transition into a new
job ?
 11. What are the two major principles of
human relations management ?
 12. List the different types of compensation
plans that may be used by a small business.
18
Concept Checks
13. What are the fringe benefits available to
the employee ?
 14. What are the five steps in the simplified
M.B.O. process ?
 !5. What are some of the important
principles of grievance management ?
 16. What are the steps in administering a
payroll for a small business ?

19