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Managing Human Resources in Small and Entrepreneurial Firms # Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6-1

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Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Managing Human

Resources in Small and

Entrepreneurial Firms

#

Chapter 6-1

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Learning Objectives

1. Explain why HRM is important to small businesses and how small business HRM is different from that in large businesses.

2. Give four examples of how entrepreneurs can use Internet and government tools to support the HR effort.

Chapter 18-2

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Learning Objectives3. List five ways entrepreneurs can use their

small size to improve their HR processes.

4. Discuss how you would choose and deal with a professional employee organization.

5. Describe how you would create a start-up human resource system for a new small business.

Chapter 18-3

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Why HRM is Important to Small

Businesses and How Small

Business HRM is Different from

that in Large Businesses

Chapter 18-4

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

The Small Business Challenge

• How small business HRM is differentoSizeoPrioritieso InformalityoThe entrepreneuro Implications

• Why HRM is important to small businesses

Chapter 18-5

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Review• Size• Priorities• Informality• The entrepreneur• Importance

Chapter 18-6

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Four Examples of How Entrepreneurs Can Use

Internet and Government Tools to Support the HR Effort

Chapter 18-7

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Using Internet and Government

Tools to Support the HR Effort

• Complying with employment lawsoDOLoEEOCoOSHA

• Employment planning and recruitingoWeb-based recruiting

Chapter 18-8

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Using Internet and Government

Tools to Support the HR Effort

• SelectionoComplying with the law

• TrainingoPrivate vendorsoThe SBA and NAM

• Appraisal and compensation• Safety and health

Chapter 18-9

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Review• Employment laws• Planning and recruiting• Selection• Training• Appraisal and

compensation• Safety and health

Chapter 18-10

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Five Ways Entrepreneurs Can Use their Small Size to

Improve their HR Processes

Chapter 18-11

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Leveraging Small Size:

• Simple, informal selection• Streamlined interviewsoPreparing oSpecific factors to probeoConducting the interviewoMatching the candidate to the job

Chapter 18-12

Familiarity, Flexibility, Fairness, Informality, and HRM

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Leveraging Small Size:

• Work-sampling tests• Flexibility and the four-step training process

• Job description• Task analysis record form• Job instruction sheet• Prepare training program

• Informal training methods

Chapter 18-13

Familiarity, Flexibility, Fairness, Informality, and HRM

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Leveraging Small Size:

• Flexibility in benefits and rewardsoA culture of flexibilityoWork–life benefitsoRecognitionoSmall business benefits for bad timesoSimple retirement benefits

Chapter 18-14

Familiarity, Flexibility, Fairness, Informality, and HRM

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Leveraging Small Size:

• Improved communicationsoNewsletteroOnlineoThe huddle

• Fairness and the family business

Chapter 18-15

Familiarity, Flexibility, Fairness, Informality, and HRM

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Review• Informal selection• Streamlined interviews• Work-sampling tests• Training• Flexibility in benefits and rewards• Communications• Fairness

Chapter 18-16

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

How You Would Choose and Deal with a Professional

Employee Organization (PEO)

Chapter 18-17

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Using Professional Employer Organizations

• How do PEOS work?• Why use a PEO?

oLack of specialized HR supportoPaperworkoLiabilityoPerformance

• CaveatsoWarning signs

Chapter 18-18

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Review• The use of PEOs• Reasons for using

PEOs• Caveats

Chapter 18-19

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

How You Would Create a Start-up Human Resource System for a New Small

Business

Chapter 18-20

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Managing HR Systems, Procedures, and Paperwork• Basic components of manual HR

systemsoBasic formsoOther sources

• Automating individual HR tasksoPackaged systems

Chapter 18-21

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Managing HR Systems, Procedures, and Paperwork

• Human resource information systems (HRIS)• Improved transaction processing• Online self-processing• Improved reporting capability• HR system integration• HRIS vendors• HR and intranets

Chapter 18-22

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Review• Manual HR systems• Automation• HRIS• Online transaction and self-

processing• Reporting and system integration• HR and intranets

Chapter 18-23

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Chapter 18-24