Unit 7
Managing Human
Resources
Small Business Operations
Organizing the Small Business
 Organizing is the
management function of
arranging people, activities,
and resources to
accomplish the goals of the
small business. Marketing, 3e,
page 623
– Employees are the most
important resource of any
small business.
– Employees can determine
the success or failure of any
small business.
Frameworks 7.1
Human Resources
 Human resources management
consists of all the activities involved
in acquiring, developing, and
compensating the people who do
the work of the small business.
Business Principles and Management, 12e, page 616
– Most entrepreneurs will be responsible
for recruiting, hiring, supervising,
motivating, and rewarding the
employees needed for the success of
the small business.
– Small business owners must be sure
that employees are satisfied with their
jobs and motivated to perform well.
Frameworks 7.2
Characteristics of Good Organization
 Responsibility is the
obligation to do an
assigned task. Business
Principles and Management, 12e, page
337
– In a good organization,
the assigned tasks are
clearly identified so all
employees know
exactly the work for
which they are
responsible.
Frameworks 7.2.1
Characteristics of Good Organization
 Authority is the right
to make decisions
about assigned work
and to make
assignments to others
concerning the work.
Business Principles and Management,
12e, page 338
– Authority is delegated
from the top of the
organization to others
at lower levels.
Frameworks 7.2.1
Characteristics of Good Organization
 Accountability is the
obligation to accept
responsibility for the
outcomes of assigned
tasks. Business Principles and
Management, 12e, page 337
– Each employee must be
held accountable for
achieving the quality and
quantity of the work they
have been assigned.
Frameworks 7.2.1
Characteristics of Good Organization
 Unity of command means that no employee reports to
more than one supervisor at a time or for a particular
task. Business Principles and Management, 12e, page 339
– Having more than one supervisor at a time creates confusion
and arguments and results in low morale among employees.
Frameworks 7.2.1
Characteristics of Good Organization
 Span of control is the number of employees that any
one manager supervises directly. Business Principles and
Management, 12e, page 339
– The manager who supervises too many people is overworked
and unable to perform all duties effectively.
Frameworks 7.2.1
Characteristics of Good Organization
 Employee empowerment
is an approach to
management that gives
employees the authority
to solve many customer
problems. Marketing, 3e, page
27
– Small business owners
must hire employees they
can trust to make good
decisions that are in the
best interest of customers
and the company.
Frameworks 7.2.1
Organizing the Small Business
 An organization
chart is a drawing
that shows the
structure of an
organization, major
job classifications,
and the reporting
relationships among
the organization’s
personnel. Business
Principles and Management,
12e, pages 333-334
An organization chart provides a visual picture of how
work is structured in a business.
Frameworks 7.3
Create an Organization Chart for the SBE
Marketing Teacher/DECA Advisor
General Manager
Team Member
Team Member
Team Member
Morning
Morning
Morning
Shift
Shift
Shift
Co-Manager
Team Member
Team Member
Team Member
Afternoon
Afternoon
Afternoon
Shift
Shift
Shift
Frameworks 7.3.1
Selecting Personnel – The Job Description
 A job description is a list
of the basic tasks that
make up a job. Business
Principles and Management, 12e, page 623
– Write a job description for a
position in the School
Based Enterprise.
– Include all the duties and
responsibilities of the job.
– Review the job description
example that follows for the
position of Barista.
Frameworks 7.3.2
Job Description: Barista (example)
Position Summary: The Barista is the foundation of the café. The Barista is responsible for
honoring each and every customer by providing excellent customer service. He/she is also
responsible for educating customers about our premium organic coffees and teas. The Barista is a
true professional that fulfills any additional duties the Café Manager, Assistant Manager, or Shift
Leader assigns. He/she displays a positive attitude at all times to ensure the return of our customers
who are the reason for our business.
Essential Responsibilities: A Barista is responsible for the following during his/her shift:
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Greets all customers with a friendly smile.
Honors customers by providing quick, friendly, and personal service.
Initiates dialogue and develops rapport with customers by learning their names, favorite
drinks and food items.
Generates customer satisfaction; responds appropriately to customer concerns.
Communicates customer complaints/concerns to manager on duty.
Accurately processes transactions through the POS and counts back change to
customers.
Answers the café telephone in a friendly manner using a professional greeting.
Sells and serves baked goods and miscellaneous food items to customers.
Maintains the highest level of standards for all product preparation.
Adheres to all Company recipes and measurements.
Source: www.greenbeanscoffee.com
Frameworks 7.3.2
Job Description: Barista (continued)
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Produces superior product presentation.
Educates customers on products and services offered by the business.
Provides top quality espresso shots for hot and cold beverages.
Follows health, safety and sanitation guidelines for all products.
 Communicates with coworkers & management to solve problems and improve quality & service
 Maintains continuous communication with other staff functions (i.e. bar, register etc.)
during peak business times.
 Works with coworkers and management to effectively implement change.
 Contributes to a positive work environment.
 Assists in the opening and/or closing of the café.
 Makes effort to improve job skills, knowledge and education.
 Takes ownership of processes and quality improvements.
 Initiates suggestive selling and sampling of products.
 Does what needs to be done without being asked.
 Contributes to the profitability of the café by finding new methods of selling products.
 Honors themselves by taking pride in their appearance while adhering to the company dress code.
 Respects their peers and supervisors by being on time for every shift and finding coverage
for shifts they can’t work due to illness.
Source: www.greenbeanscoffee.com
Frameworks 7.3.2
Selecting Personnel – The Application
 Create/evaluate a job application form for the SBE.
APPLICATION FOR THE SCHOOL BASED ENTERPRISE
Name ______________________________________
Home Phone _________________________________
Home Address ___________________________ Cell Phone _________________
Employment history: _________________________________________________
What are your plans after high school? ___________________________________
What is your career objective? __________________________________________
Please list school activities that you are currently participating in:
___________________________________________________________________
Why do you wish to become part of the SBE team?
____________________________________________________________________
Frameworks 7.4.1
Selecting Personnel - Recruiting
 After a need for a new employee has
been established and a job
description has been written, the
small business owner must recruit job
applicants. Sources of job applicants
include:
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Unsolicited applications or resumes.
Referrals from existing employees.
Internet submitted applications/resumes.
College and university placement
programs.
– High school work-based learning
programs.
– Advertising in the local newspaper.
Source: Business Principles and Management, 12e, pages 623-624
Frameworks 7.4.2
Selecting Personnel – The Interview
 Before conducting the job interview,
BE PREPARED!
 Review the applicant’s resume,
application, and other information –
Facebook, MySpace, etc.
 Use an office, meeting room, or
neutral site for the interview.
 Have an evaluation form and take
notes during and immediately after
the interview.
 Consider having 1 or 2 other key
team members of the business
participate in the job interview.
Frameworks 7.4.3
Selecting Personnel – The Interview
 Ask the same, job related, questions of each
applicant.
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Tell us about yourself.
What five adjectives describe you best?
Why are you the best candidate for this position?
What will you bring to our business that others might not?
Tell us about your previous work experience and why you left.
What is your greatest strength? Greatest weakness?
Tell us about a bad decision you made and how you corrected it.
Tell us about a time when you helped resolve a dispute between
others.
– Do you have questions for us?
Source: www.jobinterviewquestions.com
Frameworks 7.4.3
Selecting Personnel – The Interview
 Never ask questions related to the job applicant’s age, gender,
ethnic background, health, disabilities, religious or political
affiliations, marital status, spouse, or children.
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Are you married?
Do you intend to get married?
Are you a single parent?
Do you live by yourself?
Do you have someone who can take care of a sick child?
Where does your spouse work?
What's your nationality?
Are you bilingual? (unless job related)
What church are you a member of?
With what political party are you affiliated?
What health problems do you have?
All interview questions should be related to the job. The above questions
reflect illegal discrimination and could result in a lawsuit.
Source: www.usta.edu
Frameworks 7.4.3
Promotion Vs. Transfer
 A promotion is the
advancement of an employee
within the small business to a
position with more authority
and responsibility.
 A transfer is the assignment of
an employee to another job in
the small business that
involves the same level of
responsibility and authority as
the employee’s current job.
Source: Business Principles and Management, 12e, page 626
Frameworks 7.5.1
Employee Evaluation
Frameworks 7.5.2
Discharge Vs. Layoff
 A discharge is the
release of an employee
from the company due
to inappropriate work
behavior.
 A layoff is a temporary
or permanent reduction
in the number of
employees because of
a change in business
conditions.
Source: Business Principles and Management, 12e, page 627
Frameworks 7.6.1
Employee Turnover
 Employee turnover is the
rate at which people enter
and leave employment in a
business during a year.
– If the business has an
average of 15 employees
and has to hire 10
employees during the year to
maintain the staff at 15, what
is the turnover rate?
• # of new hires (10) divided by
average # of employees (15) =
66.6 %
Source: Business Principles and Management, 12e, page 627
Frameworks 7.6.2
Exit Interview
 An exit interview is a
formal interview with an
employee who is
leaving the small
business to determine
his or her attitudes
about the business and
suggestions for
improvement.
 This is an opportunity to
learn about the causes
of employee turnover.
Source: Business Principles and Management, 12e, page 628
Frameworks 7.6.3
End of Unit 7
 Visit the website www.quizlet.com to review the
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 Use your first and last name (without a space) as your
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 Using the Quizlet.com search feature, search for
cdorman and find Mr. Dorman’s dashboard.
 Open the Subjects folder “Small Business Operations.”
 Study the flashcards.
 Use the test feature and use the scatter feature.