PowerPoint
Presentations for
Small Business Management:
Launching and Growing New Ventures,
Fifth Canadian Edition
Adapted by
Cheryl Dowell
Algonquin College
CHAPTER 9
The New Venture Team,
Small Firm Management, and Managing
Human Resources
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LOOKING AHEAD
After studying this chapter, you should be able to:
1.
2.
3.
4.
5.
Discuss the entrepreneur’s leadership role.
Discuss the characteristics of a strong new venture team.
Discuss the evolving features of small firm management.
Describe the nature of managerial work.
Explain the importance of employee recruitment and list
some sources that can be useful for finding suitable
applicants.
continued…
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9-3
LOOKING AHEAD
After studying this chapter, you should be able to:
6. Identify the steps in evaluating job applicants.
7. Describe the role of training for both managerial and nonmanagerial employees in the small firm.
8. Explain the various kinds of compensation plans and the
differences between day work and incentives.
9. Discuss contract employees, labour unions, maternity/
paternity leaves, the formalizing of human resources
management, and other special issues in human resource
management.
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9-4
LEADING AND MOTIVATING
Empowerment
Work teams
Benefits
LO 1
• Giving employees authority to make
decisions or take actions on their own
• Groups of self-managed employees with the
freedom to function without close
supervision
• Workers are more satisfied with their
working environment
• Productivity and profitability are enhanced
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9-5
CHARACTERISTICS OF A
NEW VENTURE TEAM
LO 2
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9-6
THE VENTURE TEAM
LO 2
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9-7
CHARACTERISTICS OF FOUNDERS AND
PROFESSIONAL MANAGERS
LO 3
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9-8
THE NATURE OF
MANAGERIAL WORK
• Management Functions
– Planning
• Long-range – strategic plans (future)
• Short-range – operational plans (current year)
– Leading
– Organizing
– Controlling
LO 4
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9-9
NEED FOR FORMAL PLANNING
long-range plan
(strategic plan)
short-range plans
firm’s overall plan for the future
plans that govern a firm’s operations for
one year or less
budget
a document that expresses future plans
in monetary terms
business policies
basic statements that serve as guides for
managerial decision making
procedures
specific methods followed in business
activities
standard operating an established method of conducting a
procedure
business activity
LO 4
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9-10
SUCCESS IN PLANNING
• Make time for planning
– Need detailed planning and quality control
• Set clear goals
– Goals - created for critical performance areas
– Objectives – short-term targets
• Encourage employee participation/
communication
LO 4
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9-11
EFFECTIVE COMMUNICATION
• Stimulate two-way communication:
– Periodic performance review sessions
– “Notice of the day”
– Open communication
– Staff meetings
LO 4
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9-12
RECRUITING PERSONNEL
• Importance of people
–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
LO 4
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9-13
SOURCES OF EMPLOYEES
Walk-ins
Electronic employment sites
Schools
Public employment offices
Private employment agencies
Employee referrals
Help wanted advertising
Temporary-help agencies
LO 5
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9-14
JOB DESCRIPTION FOR
RETAIL STOCK CLERK
LO 5
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9-15
EVALUATING PROSPECTS AND
SELECTING EMPLOYEES
Step 1
• Using Application Forms
Step 2
• Interviewing The Applicant
Step 3
• Checking References And Other
Background Information
Step 4
Step 5
LO 6
• Testing The Applicant
• Validity And Reliability
• Physical Examinations
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9-16
TRAINING AND DEVELOPMENT
• Purposes of training and development
– improve skills and knowledge
•
•
•
•
•
Orientation for new personnel
Retaining employees
Training to improve quality
Training nonmanagerial employees
Developing managerial and professional
employees
LO 7
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9-17
COMPENSATION AND INCENTIVES
daywork
a compensation system based on increments of time
profit –sharing plans
percentage of profits is distributed to employees
fringe benefits
supplements to compensation designed to be
attractive and beneficial to employees.
cafeteria plans
(or flexible benefits
programs)
plans that allow staff to choose their benefits within a
set budget
Employee Stock
Ownership Plans
(ESOPs)
employees’ performance is motivated by their sharing
of ownership in the firm
LO 8
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9-18
CREATING AND COMPENSATING
THE MANAGEMENT TEAM
LO 8
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9-19
PERFORMANCE-BASED
COMPENSATION CHECKLIST
1. Set attainable goals
2. Set meaningful goals
3. Bring workers in
4. Keep targets moving
5. Aim carefully
LO 8
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9-20
FRINGE BENEFITS
• Cost of fringe benefits is a substantial part of total
labour
– ranges from 20 to 40 percent of base pay
• Includes:
–
–
–
–
–
–
LO 8
Canadian Pension Plan (CPP)
Employment Insurance (EI)
Vacation pay
Health Insurance
Dental plans
Worker’s compensation
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9-21
IMPORTANT JOB FACTORS
LO 8
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9-22
SPECIAL ISSUES IN
HUMAN RESOURCES MANAGEMENT
• Employee versus Self-Employed (Contractor)
• Employee:
–
–
–
–
–
–
subordination relationship
company controls the results of the work
company determines/controls method/amount of pay
requires permission to work for others
company demands a priority on the worker’s time
received training or supervision from the company
Source: Canada Revenue Agency
LO 9
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SPECIAL ISSUES IN
HUMAN RESOURCES MANAGEMENT
• Employee versus Self-Employed (Contractor)
• Self-Employed (Contractor):
–
–
–
–
–
works independently
does not have anyone overseeing him or her
free to work when and for whom
can accept or refuse work
relationship does not present a degree of:
– continuity, loyalty, security, subordination, or
integration
Source: Canada Revenue Agency
LO 9
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SPECIAL ISSUES IN
HUMAN RESOURCES MANAGEMENT
• Lay-offs
– must give a notice period
– “last-hired, first-laid-off” policy
– returning, job offered to that employee
• Terminations
– “just cause”
– “progressive discipline”
• Confidentiality
– “Confidentiality, Non-Competition and NonSolicitation”
LO 9
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9-25
SPECIAL ISSUES IN
HUMAN RESOURCES MANAGEMENT
• Labour Unions:
– Most entrepreneurs prefer to operate
independently and to avoid unionization
– Most small businesses are not unionized
– Concentrate their efforts on larger companies
– 13 % of employees in workplaces with fewer than
20 employees were union members
– 30% in the 20–99 employee
LO 9
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9-26
NEED FOR A
HUMAN RESOURCES MANAGER
• Appointment of an HR manager if:
– 100 or more employees
– Union present
– Labour turnover rate is high
– Need for skilled or professional personnel
– Require considerable training
– Employee morale is unsatisfactory
– Competition for personnel is keen
LO 9
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9-27
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
LO 9
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9-28
PROTECTING EMPLOYEE RIGHTS
• 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
LO 9
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9-29
PROTECTING EMPLOYEES RIGHTS
Employment
Standard codes
• set out required working conditions
such as maximum work hours,
overtime pay, meal breaks,
minimum wages, and parental and
maternity leaves
Workers’
compensation
• compensate employees for injuries,
illnesses, and deaths that occur in
the course of employment
LO 9
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9-30