SMALL BUSINESS MANAGEMENT

Chapter 11Human Resources Management

SF Hardware

Family case

Family CaseCali Restaurant

Boxes R US

Complexities of managing family within your business.

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

Planning Hiring Management

Planning for Human Resources

Determine Personnel Requirements Set Organization Structure

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

The Screening Process Application form, the employment

interview, checking references, tests

Notification of the Hiring Decision

Personnel Management

The Introduction Period The first week

The Probationary Period Training

On-the-job training, formal classroom training

Cali Restaurant

Personnel Management

The Owner-Manager as Personnel Manager 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

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

Boxes are us

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)

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

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

Preserving the Employee's Dignity natural for a person being fired to feel resentment

toward you and your business-- minimize it

not good for your business reputation to have ex-employees bad-mouthing you all over town

possibility that you might be sued by a disgruntled ex-employee

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

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

Government Requirements and Assistance Federal Government

job entry program skill shortage and skill investment programs job development program innovation programs community future programs

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

Personnel Management

Municipal Government licensing zoning operation hours property taxes building codes

Personnel Management

Recordkeeping for Employers Employee Remittance Number Payroll Book Monthly Remittance Year-End Statements

Contract Employees

Appendices

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