Chapter 12
Human Resources Management
Patriot Computers

Human Resources Management and the
Small Business
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Planning
Hiring
Management

Planning for Human Resources
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Determine Personnel Requirements
Set Organization Structure

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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
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Application form, the employment interview, checking references, tests
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Notification of the Hiring Decision

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

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

Personnel Management
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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

Personnel Management

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)

Personnel Management

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

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

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

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

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

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

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

Concept Checks
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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 owner-manager can apply ?
9. What can be done to improve the owner-manager’s use of time ?

Concept Checks
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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.

Concept Checks
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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 ?

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