Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter 11 PowerPoint Presentation by Thomas M c Kaig, Ryerson University Managing Human

Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter 11

PowerPoint Presentation by PowerPoint Presentation by

Thomas MThomas MccKaig, Ryerson UniversityKaig, Ryerson University

Managing Managing Human Human ResourcesResources

1111

11-2Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter 11

Looking AheadLooking Ahead

After studying this chapter, you should be able to:

1. Discuss the entrepreneur’s leadership role.

2. Explain the importance of employee recruitment and list some sources that can be useful for finding suitable applicants.

3. Identify the steps to take in evaluating job applicants.

4. Describe the role of training for both managerial and nonmanagerial employees in a small firm.

5. Explain the various kinds of compensation plans and the differences between daywork and incentives.

6. Discuss the contract employees, labour unions, the formalizing of human resources management, and government regulations pertaining to employee protection.


Leading and MotivationLeading and Motivation

• Personal Involvement of the EntrepreneurCreates a significant personal relationship with

employees based on loyalty and respect.Directly influences employees’ understanding of

how the firm operates (e.g., its ethics).Makes the firm attractive to new employees.


LeadershipLeadership

• Leadership That Builds EnthusiasmEmpowerment

• Giving employees authority to make decisions or take actions on their own

Work teams• Groups of self-managed employees with the freedom to

function without close supervision

Benefits• Workers are more satisfied with their working environment• Productivity and profitability are enhanced


Recruiting Personnel (The Importance of People)

Recruiting Personnel (The Importance of People)

• The Need for Quality EmployeesEmployee 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.


Attracting Applicants to Small FirmsAttracting Applicants to Small Firms

• Advantages of Employment in Small FirmsQuicker movement to decision-making levels of

managementGreater managerial freedomMore opportunities for

broad-based managerial experienceFlexibility in work scheduling

and job sharing


Sources of EmployeesSources of Employees

Sources of EmployeesSources of EmployeesSources of EmployeesSources of Employees

Walk-insWalk-insWalk-insWalk-ins

SchoolsSchoolsSchoolsSchools

Public EmploymentPublic Employment Agencies Agencies

Public EmploymentPublic Employment Agencies Agencies

Executive SearchExecutive SearchFirmsFirms

Executive SearchExecutive SearchFirmsFirms

Employee ReferralsEmployee ReferralsEmployee ReferralsEmployee Referrals

Private EmploymentPrivate EmploymentAgenciesAgencies

Private EmploymentPrivate EmploymentAgenciesAgencies

InternetInternetRecruitingRecruiting

InternetInternetRecruitingRecruiting

Help-WantedHelp-WantedAdvertisingAdvertising

Help-WantedHelp-WantedAdvertisingAdvertising

Temporary HelpTemporary HelpAgenciesAgencies

Temporary HelpTemporary HelpAgenciesAgencies


Job DescriptionJob Description

• Job DescriptionA written summary of the essential duties required by a

specific job• Aids in personnel recruitment.• Helps focus employees on their work.• Provides direction in training.• Serves as the basis for performance review.

• Job SpecificationA list of the skills and abilities needed by the job holder

to successfully perform a specific job• Aids in selecting the most qualified job applicant.


Job Description for a Stock Clerk in Retail Food Store

Job Description for a Stock Clerk in Retail Food Store

Title: Stock ClerkPrimary Function: To stock shelves food products and other itemsSupervision Received: Works under direct supervision of store managerSupervision Exercised: None

Duties:1. Receive and store products in storage area.2. Take products from storage, open outer wrapping, and place on store shelves.3. Provide information and/or directions to customers seeking particular products or having other questions.4. Monitor quantity of products on shelves and add products when supplies are low.5. Perform housekeeping duties when special need arises—for example, when a container is broken or products fall on the floor.6. Assist cashiers in bagging products as needed during rush periods.7. Assist in other areas or perform special assignments as directed by the store manager.

Title: Stock ClerkPrimary Function: To stock shelves food products and other itemsSupervision Received: Works under direct supervision of store managerSupervision Exercised: None

Duties:1. Receive and store products in storage area.2. Take products from storage, open outer wrapping, and place on store shelves.3. Provide information and/or directions to customers seeking particular products or having other questions.4. Monitor quantity of products on shelves and add products when supplies are low.5. Perform housekeeping duties when special need arises—for example, when a container is broken or products fall on the floor.6. Assist cashiers in bagging products as needed during rush periods.7. Assist in other areas or perform special assignments as directed by the store manager.

Figure 11 -1


Evaluating Prospects and Selecting Employees

Evaluating Prospects and Selecting Employees

Steps in Recruiting EmployeesSteps in Recruiting Employees

Application FormsApplication Forms

Applicant InterviewApplicant Interview

Reference CheckingReference Checking

Applicant TestingApplicant Testing

Physical ExaminationPhysical Examination


Training and Developing Employees Training and Developing Employees

• Purposes of Training and Development Prepare recruit to perform the duties of the job. Improve the performance of current employees. Prepare employees for career advancement. Improve morale of current employees. Serve as an inducement to potential applicants.

• Factors in Establishing a Training Program Determining the need for training Creating a plan for training Setting a timetable for training Providing employee counselling


PREPARE EMPLOYEES

• Put employees at ease.• Place them in appropriate jobs. • Find out what they know.• Get them interested in learning.

PREPARE EMPLOYEES

• Put employees at ease.• Place them in appropriate jobs. • Find out what they know.• Get them interested in learning.

PRESENT THE OPERATIONS

• Tell, show, and illustrate the task.• Stress key points.• Instruct clearly and completely.

PRESENT THE OPERATIONS

• Tell, show, and illustrate the task.• Stress key points.• Instruct clearly and completely.

TRY OUT PERFORMANCE

• Have employees perform the task.• Have them tell, show, and explain.• Ask employees questions and correct any errors.

TRY OUT PERFORMANCE

• Have employees perform the task.• Have them tell, show, and explain.• Ask employees questions and correct any errors.

FOLLOW UP

• Check on employees frequently.• Tell them how to obtain help.• Encourage questions.

FOLLOW UP

• Check on employees frequently.• Tell them how to obtain help.• Encourage questions.

Orientation for New Personnel

Orientation for New Personnel


Types of Training and DevelopmentTypes of Training and Development

Development of Development of Managers and Managers and ProfessionalsProfessionals

Orientation ofOrientation ofNew PersonnelNew Personnel

Training to Training to Improve QualityImprove Quality

Training of Training of Nonmanagerial Nonmanagerial

EmployeesEmployees

Training& Training& DevelopmentDevelopment to Improve to Improve Job QualityJob Quality


Compensation and Incentives for Small Business Employees


• Financial IncentivesKeys to developing an

effective bonus plan:• Set attainable goals.• Set meaningful goals.• Bring workers in

(employee participation).• Keep targets moving.• Aim carefully.

…continued




• Profit Sharing A percentage of profits is distributed to employees

• Fringe Benefits Supplements to compensation designed to be attractive and

beneficial to employees.• Benefits are a substantial portion of payroll costs.• Small firms tend to provide fewer benefits.• Small firms are increasingly outsourcing the administration of

their benefits programs.• Cafeteria plans can be a part of benefits along with dental care

and child-care re-imbursement


Employee Stock Ownership Plans and Profit Sharing

Employee Stock Ownership Plans and Profit Sharing

• Employee Stock Ownership Plans (ESOPs)Plans through which a firm is sold either in part

or in total to its employees.• Employees’ performance is motivated by their sharing

of ownership in the firm.

• Owners can cash out and withdraw without selling to outsiders.

• ESOPs offer tax advantages to owners and employees.


Factors that Contribute to Quality of Work Life

Factors that Contribute to Quality of Work Life

• Top three factors that employees felt contributed to a positive work environment are:To be treated with respectTo have interesting workTo have good communication with co-workers


“Very Important” Job Factors“Very Important” Job Factors

Figure 11 -2


Special Issues in HRMSpecial Issues in HRM

• Contract EmployeesThe “renting” of personnel from an organization

that handles paperwork and administers benefits for those employees• Leasing allows small firms to provide employee benefits.

• Leasing makes small firms subject to additional government regulations.

Professional Employment Organization• A personnel-leasing company that places employees on

its own payroll and then “rents” them to employers on a permanent basis. …continued



• Labour Unions Most entrepreneurs prefer to operate

independently and to avoid unionization Most small businesses are not unionized Unions primarily concentrate their efforts on

larger companies.

…continued



• Formalizing of Employer-Employee RelationshipsEmployee handbook contents

• Expression of company philosophy

• Recruitment

• Selection

• Training

• Vacations

• Grievances

• Discipline

• Performance reviews



• The Need for a Human Resource ManagerConditions favouring the appointment of an HR

manager:• A substantial number of employees (100+)• Unionized employees• A high labour turnover rate• A strong need to recruit skilled and professional employees• Supervisors or operative employees in need of training• Low employee morale• Intense job market competition for personnel


Protecting Employee RightsProtecting 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


Harassment PoliciesHarassment Policies

• Sexual harassment policy guidelinesEstablish 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.


Employment Benefits and Employment Insurance (EI)

Employment Benefits and Employment Insurance (EI)

• Federal and provincial employment standard codes set out required working conditions such as maximum work hours, overtime pay, meal breaks, minimum wages, and parental and maternity leaves.

• Women on maternity leave are entitled to employment insurance (EI) as are those workers who become unemployed, as long as they have met certain requirements.

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Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Chapter 11 PowerPoint Presentation by Thomas M c Kaig, Ryerson University Managing Human