1. Staffing and Leading a Growing Company
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2. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall
Leadership
Process of influencing and inspiring others to work to achieve a common goal and then giving them the power and the freedom to achieve it.
Entrepreneurs must take on many roles in their companies, but none is more important than that of leader.
How do “leadership” and “management” differ?
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3. Four Vital Tasks of a Leader
Hire the right employees and constantly improve their skills
Build an organizational culture and structure that enable the company to reach its potential
Communicate the vision and the values of the company and create an environment of trust
Motivate workers to higher levels of performance
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4. Vital Task 1 - Hiring the Right Employees
Commit to hiring the best talent
Elevate recruiting to a strategic position in the company
Conduct a job analysis and create
practical job descriptions and job specifications
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5. Conducting a Job Analysis
Create a job description – a written statement of the duties, responsibilities, reporting relationships, working conditions, and materials and equipment used in a job
Create a job specification – a written statement of the qualifications and characteristics needed for a job, stated in such terms as education, skills, and experience
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6. Hiring the Right Employees Continued
Screen resumes
Plan an effective interview
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7. Planning an Effective Interview
Involve others in the interview process
Develop a series of core questions and ask them of every job candidate
Ask open-ended questions rather than those calling for “yes or no” answers
Create hypothetical situations candidates would encounter on the job
and ask how they would
handle them
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8. Planning an Effective Interview
(Continued)
Probe for specific examples in the candidate’s work history that demonstrate the necessary traits and characteristics
Ask candidates to describe a recent success and a recent failure and how they dealt with them
Arrange a “non-interview” setting in which to observe the candidate
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9. Conducting an Effective Interview
Break the ice. Goal: to diffuse nervous tension
Ask questions
Keep it legal!
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The “OUCH” Test
Does the question Omit references to race, religion, color, sex, or national origin?
Does the question Unfairly screen out a particular class of people?
Can you Consistently apply the question to every applicant?
Does the question Have job-relatedness and business necessity?
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11. Conducting an Effective Interview
Sell the candidate on the company. Best candidates will have other job offers. Your job: to convince the best candidates that your company is a great place to work
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12. Hiring the Right Employees
Conduct a job analysis and create practical job descriptions and job specifications
Plan an effective interview
Conduct the interview
Check references
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13. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall
Checking References
Checking an applicant’s references is an important part of protecting a company against making a “bad hire”
Is it really necessary?
Yes!! Background Information Services: More than 50% of job seekers lie on their résumés
Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

14. Vital Task 2 - Company Culture
Distinctive, unwritten, informal code of conduct that governs the behavior, attitudes, relationships, and style of an organization
“The way we do things around here”
In small companies, culture plays as important a part in gaining a competitive edge as strategy does
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15. Characteristics of Positive Company Culture
Respect for work and life balance
Sense of purpose
Diversity
Integrity
Participative management
Learning environment
Sense of fun
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16. Team-Based Management
Self-directed work team – a group of workers from different functional areas of a company who work together as a unit largely without supervision, making decisions and performing tasks that once belonged only to managers
In this setting, the nature of managers’ work changes dramatically
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17. Common Errors with Teams
Assigning teams inappropriate tasks
Failing to provide meaningful performance targets
Sabotaging teams with underperformers
Failing to compensate team members equitably
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18. Vital Task 3 - Communicating Effectively
Encourage feedback
Get out of the office and talk to employees
Tell the truth
Don’t be afraid to tell employees about the business, its performance, and the forces that affect it
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19. Communicating Effectively
Clarify your message before communicating it
Use face-to-face communication whenever possible
Be empathetic
Match your message to your audience
Be organized
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20. Vital Task 4 - The Challenge of Motivating Workers
Empowerment
Rewards and compensation
Feedback
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21. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall
Empowerment
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
Requires a different style of management from that of the traditional manager
Is built on sharing information (Open-Book Management), authority, and power
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22. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall
Open-Book Management
Employees:
See and learn to understand a company’s financial statements and its critical numbers
Learn that a significant part of their jobs is moving those critical numbers in the right direction
Have a direct stake in the company’s success through profit sharing, ESOPs, or performance-based bonuses
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23. Rewards and Compensation
The key to using rewards to motivate workers is tailoring them to the needs and characteristics of individual workers
Money is an effective motivator - up to a point
Pay-for-performance systems
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24. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall
Pay-for-Performance
Employees’ incentive pay must be clearly and closely linked to their performances
Employees must be able to see the connection between what they do every day on the job and the rewards they receive
The system must be simple enough so that employees understand and trust it
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25. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall
Pay-for-Performance
Employees must believe the system is fair
The system should be inclusive, rewarding all employees, no matter what their jobs might be
The system should make frequent payouts to employees
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26. Rewards and Compensation
Intangible rewards such as praise, recognition, celebrations, and others can be very powerful, yet inexpensive, motivators
Ideal for small companies
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27. The Feedback Loop Deciding What to Measure Taking Action How to
Comparing
Actual Performance
Against
Standards
Deciding
What to
Measure
How to
Taking
Action
to Improve
Performance
Actual
Chapter 19 Staffing and Leading Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall

28. Guidelines for Successful Performance Appraisals
Link the employee’s performance to the job description
Establish meaningful, job-related, observable, measurable, and fair performance criteria
Prepare for the appraisal by outlining the key points you want to cover with the employee
Invite the employee to provide an evaluation of his own job performance based on the criteria
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29. Guidelines for Successful Performance Appraisals
(Continued)
Be specific
Keep a record of employees’ critical incidents - both positive and negative
Discuss the employee’s strengths and weaknesses
Incorporate employees’ goals into the appraisal
Keep the evaluation constructive
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30. Guidelines for Successful Performance Appraisals
(Continued)
Praise good work
Focus on behaviors, actions, and results
Avoid surprises (for both the employee or the business owner)
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
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