1. Staffing & Leading 1 Copyright 1999 Prentice Hall Publishing Company Staffing and Leading a Growing Company

2. Staffing & Leading 2 Copyright 1999 Prentice Hall Publishing Company Leadership... l Is the process of infuencing and inspiring others to work to achieve a common goal and then giving them the power and the freedom to achieve it. l Is not the same as management; the two require different skills and abilities.

3. Staffing & Leading 3 Copyright 1999 Prentice Hall Publishing Company Effective Leaders l Create a set of values and beliefs for employees and passionately pursue them. l Respect and support their employees. l Set the example for their employees. l Focus employees’ efforts on challenging goals and keep them driving toward those goals. l Provide the resources employees need to achieve their goals.

4. Staffing & Leading 4 Copyright 1999 Prentice Hall Publishing Company Effective Leaders l Communicate with their employees. l Value the diversity of their workers. l Celebrate their workers’ successes. l Encourage creativity among their workers. l Maintain a sense of humor. l Keep their eyes on the horizon.

5. Staffing & Leading 5 Copyright 1999 Prentice Hall Publishing Company Small Business Leaders Must... l Communicate the vision and the values of the company and create an environment of trust among workers. l Hire the right employees and constantly improve their skills. l Build an organizational culture and structure that allow both workers and the company to reach their potential. l Motivate workers to higher levels of performance.

6. Staffing & Leading 6 Copyright 1999 Prentice Hall Publishing Company Communication l Managers spend about 80 percent of their time in some form of communication: â 30% talking â 25% listening â 15% reading â 10% writing l Many problems in the workplace arise because of poor communication.

7. Staffing & Leading 7 Copyright 1999 Prentice Hall Publishing Company Communicating Effectively l Clarify your message before communicating it. l Use face-to-face communication whenever possible. l Be empathetic. l Match your message to your audience. l Be organized.

8. Staffing & Leading 8 Copyright 1999 Prentice Hall Publishing Company Communicating Effectively l Encourage feedback. l Tell the truth. l Don’t be afraid to tell employees about the business, its performance, and the forces that affect it. l Be a good listener.

9. Staffing & Leading 9 Copyright 1999 Prentice Hall Publishing Company Hiring the Right Employees l Because they determine a company’s future, “new hires” are extremely important, especially to small companies, where the impact of hiring decisions is magnified. l “Bad hires” are expensive! l The key is to avoid making hiring mistakes at the outset.

10. Staffing & Leading 10 Copyright 1999 Prentice Hall Publishing Company Conducting a Job Analysis l Create a job description - a written statement of the duties, responsibilities, reporting relationships, working conditions, and materials and equipment used in a job. l Create a job specification - written statement of the qualifications and characteristics needed for a job, stated in such terms as education, skills, and experience.

11. Staffing & Leading 11 Copyright 1999 Prentice Hall Publishing Company Planning an Effective Interview l Develop a series of core questions and ask them of every job candidate. l Ask open-ended questions rather than those calling for “yes or no” answers. l Create hypothetical situations candidates would encounter on the job and ask how they would handle them.

12. Staffing & Leading 12 Copyright 1999 Prentice Hall Publishing Company Planning an Effective Interview l Probe for specific examples in the candidate’s work history that demonstrate the necessary traits and characteristics. l Ask candidates to describe a recent success and a recent failure and how they dealt with them. l Arrange a “non-interview” setting that allows several employees to observe candidates in an informal atmosphere.

13. Staffing & Leading 13 Copyright 1999 Prentice Hall Publishing Company Conducting an Effective Interview l Breaking the ice. Interviewer’s goals is to diffuse the tension that exists because of both parties’ nervousness. l Asking questions. Skilled interviewers spend about 25% of the interview talking and the other 75% listening. l Selling the candidate on the company. The best candidates will have other job offers, and the interviewer must convince the best candidates that the company is a great place to work.

14. Staffing & Leading 14 Copyright 1999 Prentice Hall Publishing Company Checking References l Checking an applicant’s references is an important part of protecting a company against making a “bad hire.” Is it really necessary? Yes !! According to the American Association for Personnel Administration, about 25% of all résumés contain at least one major fabrication!

15. Staffing & Leading 15 Copyright 1999 Prentice Hall Publishing Company Conducting Employment Tests Careful!! Tests must be valid and reliable. l Valid test - measures what it is intended to measure (e.g. aptitude for selling or creativity). l Reliable test - measures consistently over time; stable.

16. Staffing & Leading 16 Copyright 1999 Prentice Hall Publishing Company Building the Right Culture and Structure l Company culture - the distinctive, unwritten code of conduct that governs the behavior, attitudes, relationships, and style of an organization. l Culture manifests itself in many ways, from the way workers dress to the language they use.

17. Staffing & Leading 17 Copyright 1999 Prentice Hall Publishing Company A “Cool” Company Culture l Many workers today, especially younger ones, want to work in “cool” companies. l What traits make a company “cool”? â Respect for work and life balance â Diversity â Integrity â Participative management â Learning environment

18. Staffing & Leading 18 Copyright 1999 Prentice Hall Publishing Company Structure l Craftsman l Classic l Coordinator l Entrepreneur-plus-employee team l Small partnership l Big-team venture Six Styles Entrepreneurs Use:

19. Staffing & Leading 19 Copyright 1999 Prentice Hall Publishing Company What Makes Teams Succeed? l Make sure that teams are appropriate for the company and the nature of its work. l Form teams around the natural work flow and give them specific tasks to accomplish. l Provide adequate support and training for team members and leaders. l Involve team members in how their performances will be measured, what will be measured, and when it will be measured. l Make at least part of team members’ pay dependent on team performance.

20. Staffing & Leading 20 Copyright 1999 Prentice Hall Publishing Company The Challenge of Motivating Workers l Empowerment l Job design l Rewards and Compensation l Feedback

21. Staffing & Leading 21 Copyright 1999 Prentice Hall Publishing Company Empowerment... l Involves giving workers at every level of the organization the power, the freedom, and the responsibility to control their own work, to make decisions, and to take action to meet the company’s objectives. l Requires a different style of management from that of the traditional manager. l Is built on sharing information, authority, and power.

22. Staffing & Leading 22 Copyright 1999 Prentice Hall Publishing Company Empowerment Works Best When a Business Owner... l is confident enough to give workers all of the authority and responsibility they can handle. l plays the role of coach and facilitator, not the role of meddlesome boss. l recognizes that empowered employees will make mistakes. l hires people who can blossom in an empowered environment.

23. Staffing & Leading 23 Copyright 1999 Prentice Hall Publishing Company Empowerment Works Best When a Business Owner... l trains workers to continuously upgrade their skills. l trusts workers to do their jobs. l listens to workers when they have ideas, solutions, or suggestions. l recognizes workers’ contributions. l shares information with workers, perhaps using open-book management.

24. Staffing & Leading 24 Copyright 1999 Prentice Hall Publishing Company Job Design Strategies l Job simplification - breaks work down into its simplest form and standardizes each task. l Job enlargement (horizontal job loading) - adds more tasks to a job to broaden its scope.

25. Staffing & Leading 25 Copyright 1999 Prentice Hall Publishing Company Job Design Strategies l Job rotation - cross-trains workers so they can move from one job in a company to others, giving them a greater number and variety of tasks to perform. Often used with a skill-based pay system. l Job enrichment (vertical job loading) - builds motivators into a job by increasing the planning, decision making, organizing and controlling functions (which traditionally were managerial tasks).

26. Staffing & Leading 26 Copyright 1999 Prentice Hall Publishing Company Five Core Characteristics of an Enriched Job l Skill variety l Task identity l Task significance l Autonomy l Feedback Enriched Job

27. Staffing & Leading 27 Copyright 1999 Prentice Hall Publishing Company Job Design Strategies l Flextime - an arrangement under which employees build their work schedules around a set of “core hours” - such as 11 a.m.. to 2 p.m. - but have flexibility about when they start and stop work. l Job sharing - a work arrangement in which two or more people share a single full-time job.

28. Staffing & Leading 28 Copyright 1999 Prentice Hall Publishing Company Job Design Strategies l Flexplace - a work arrangement in which employees work at a place other than the traditional office, such as a satellite branch closer to their homes or, in some cases, at home. l Telecommuting - an arrangement in which employees have employees working from their homes use modern communications equipment to hook up to their workplaces.

29. Staffing & Leading 29 Copyright 1999 Prentice Hall Publishing Company Rewards and Compensation l The key to using rewards to motivate people is to tailor them to the things that are really important to workers. l Cash is an effective motivator - up to a point. l Pay-for-performance systems, where employees’ pay depends on how well they do their jobs, have become popular.

30. Staffing & Leading 30 Copyright 1999 Prentice Hall Publishing Company Money: Not the Only Motivator l Money is a short-term motivator. l Non-financial rewards can be more important sources of employee motivation than money. â Praise â Recognition â Respect â Promotions

31. The Feedback Loop. Comparing Comparing Actual Performance Actual Performance Against Against Standards Standards Deciding What to Measure Deciding How to Measure Taking Taking Action Action to Improve Performance Comparing Comparing Actual ActualPerformance Against Against Standards Standards

32. Staffing & Leading 32 Copyright 1999 Prentice Hall Publishing Company Three Goals of Performance Appraisals l To give employees feedback about how they are doing their jobs. l To provide a manager and an employee the opportunity to create a plan for developing the skills and abilities and for improving his performance. l To establish a basis for determining promotions and salary increases.

33. Staffing & Leading 33 Copyright 1999 Prentice Hall Publishing Company Making Performance Appraisals Work l Link the employee’s performance to the job description. l Establish meaningful, job-related, observable, measurable, and fair performance criteria. l Prepare for the appraisal by outlining the key points you want to cover with the employee.

34. Staffing & Leading 34 Copyright 1999 Prentice Hall Publishing Company l Invite the employee to provide an evaluation of his own job performance based on the criteria. l Be specific. l Keep a record of employees’ critical incidents - both positive and negative. Making Performance Appraisals Work

35. Staffing & Leading 35 Copyright 1999 Prentice Hall Publishing Company Guidelines for Successful Performance Appraisals l Discuss the employee’s strengths and weaknesses. l Incorporate employees’ goals into the appraisal. l Keep the evaluation constructive. l Focus on behaviors, actions, and results.

36. Staffing & Leading 36 Copyright 1999 Prentice Hall Publishing Company Guidelines for Successful Performance Appraisals l No surprises (for either the employee or the business owner). l Plan for the future. Smart business owners spend about 20% of a performance appraisal discussing past performance and 80% developing goals, objectives, and a plan for improving performance in the future.