SMALL BUSINESS
MANAGEMENT
Chapter 11
Human Resources Management
SF Hardware
Family Case
Cali Restaurant
Boxes R US
F
a
m
Complexities of managing family
within your business.
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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
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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
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job descriptions, working conditions, holidays
and leaves, remuneration and pay, employee
benefits, grievance procedure
The Hiring Process
 Sources
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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
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The Introduction Period
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Cali Restaurant
The first week
The Probationary Period
Training
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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
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
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working conditions , employee needs
Paying employees
Fringe benefits
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Boxes are us
job rotation, job sharing, working from home,
flexible hours, employee suggestion systems
Controlling and Evaluating
Performance
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pinpoint, record, involve, coach, evaluate
Handling Grievances
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implement a method for expression
grievances
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assure that concerns will not affect
relationships
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minimal red tape
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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
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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
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Preserving the Employee's Dignity
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natural for a person being fired to feel resentment
toward you and your business-- minimize it
not good for your business reputation to have exemployees bad-mouthing you all over town
possibility that you might be sued by a disgruntled exemployee
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
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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
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Government Requirements and
Assistance
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Federal Government
job entry program
 skill shortage and skill investment
programs
 job development program
 innovation programs
 community future programs
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Personnel Management
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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
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Personnel Management
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Municipal Government
licensing
 zoning
 operation hours
 property taxes
 building codes
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Personnel Management
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Recordkeeping for Employers
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Employee Remittance Number
Payroll Book
Monthly Remittance
Year-End Statements
Contract Employees
Appendices
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Interview Guide for a Small Business
Labour Legislation Jurisdiction
Provincial Labour Departments