CHAPTER Section 15.1 Hiring Decisions Section 15.2 Training & Motivating Employees Staffing Your Business

SECTION OBJECTIVES Understand factors to consider when hiring employees Compare types of organizational structures Describe the process of recruiting employees Identify professionals whose services entrepreneurs might use Hiring Decisions 2 Section 15.1: Hiring Decisions

Is It Time to Hire? In the course of weighing the decision to hire employees, you will need to answer these basic questions: Can you afford employees? Are you ready to be a boss? Can you share control? Are you willing to delegate authority or responsibility to someone else? Do you have the people skills required to manage employees? Do you know how to act with authority? 3 Section 15.1: Hiring Decisions

Organizational Structures The simplest structure is a line organization, a direct chain of command through levels of personnel who are directly involved in a business’s main occupation. An expanded version of a line organization is the line-and-staff organization, where staff members advise, assist, or support the work of line personnel. At certain times, a business may use a project organization, in which employees from more than one department work as a team on a specific goal. Project organization ends once the project goal is reached. 4 Section 15.1: Hiring Decisions

Recruiting and Hiring Employees A job description is an explanation of a position’s purpose, tasks, and responsibilities and the qualifications needed to perform it. Compensation refers to the money and benefits an employee receives in exchange for working.  Work that requires a set number of hours or items produced is generally paid as a wage.  A salary is common for jobs where the hours and schedules vary. Benefits are types of compensation other than salary or wages. 5 Section 15.1: Hiring Decisions

Screening Candidates 6 Section 15.1: Hiring Decisions

Hiring Outside Professionals When important services are needed only occasionally, a growing business may require additional help. In these situations, bringing in professionals, consultants, or skilled workers as needed is more cost effective than retaining their services full time. Choosing an outside expert requires the same type of research as hiring a regular employee. Ask candidates for references from other clients. For professionals whose services will be used on an ongoing basis, look for someone with whom you can establish a long-term relationship. 7 Section 15.1: Hiring Decisions

SECTION OBJECTIVES Compare various methods of employee training and development Explain various techniques for motivating employees Describe the processes involved in evaluating, promoting, and dismissing employees Training & Motivating Employees 8 Section 15.2: Training & Motivating Employees

Employee Training and Development Qualified candidates may have the necessary skills but need to learn how to apply them to a specific job. Training builds enthusiasm and eases the employee's concerns of starting a job or assuming new duties. Companies focus on specific training and development needs and then figures out the best way to fill them. Training for a new employee starts with orientation. Orientation is the process of gradually integrating an employee into a workplace. Job shadowing is a process of learning a job by watching an employee perform the job over a period of time. 9 Section 15.2: Training & Motivating Employees

In-House Programs Mentors should be: Interested in a Mentoring Relationship Enthusiastic about Their Careers Positive and Constructive Communicators Respected Role Models Trusted by Their Protégés 10 Section 15.2: Training & Motivating Employees

Motivating Employees Performance-based rewards are linked to a specific, achievable goal and are related to the work involved. Flexible work schedules, or flextime, provide employees with a choice of when to work. One trait entrepreneurs can appreciate in employees is the desire to take on more responsibilities.  Job enlargement means adding responsibilities to a position.  Job enrichment means increasing the depth or involvement of a job. People are motivated by a positive atmosphere that meets their need for enjoyment and value recognition. 11 Section 15.2: Training & Motivating Employees

Evaluating Employees Performance evaluations have two goals:  To point out how well the employee is meeting the job requirements and expectations.  To improve not only the employee’s performance, but also the employer’s. Promoting an existing employee shows recognition and respect for the people whose work and commitment helped build the company. Dismissing an unproductive or troublesome employee may be the entrepreneur’s most difficult responsibility, however it may be necessary for the business’s survival. 12 Section 15.2: Training & Motivating Employees