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E. Planning and Preparing to Manage a Small Business

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Presentation on theme: "E. Planning and Preparing to Manage a Small Business"— Presentation transcript:

1 E. Planning and Preparing to Manage a Small Business
Explain human resources management in a small business. Explain Staffing Procedures.

2 Staffing A process of hiring employees who can help run the business efficiently, attract customers, and increase sales. Type of employees needed? Skills missing by the business owner? Skills needed daily and/or occasionally?

3 Job Description A written statement listing duties and responsibilities of a specific job.

4 Job Specification A written document which spells out the abilities, skills, educational level, and experience needed by an employee to perform the described job.

5 Recruiting Searching for people to hire to fill job positions.

6 Recruiting from within the business environment
Can motivate employees to work hard for promotions Can reduce the cost of recruiting and training May limit opportunities for introducing “new thinking” into the business

7 Recruiting from outside the business environment
Classified (Want) Ads Employment Agencies College Placement Centers Referrals Help Wanted Signs The World Wide Web

8 Screening The first step in hiring process
Identify and select those candidates who have the right job qualifications. Eliminate the unqualified applicants. Review applications and/or resumes. Conduct interviews. Check references.

9 Training and Development
Provides employees the ability to perform their jobs well Improves morale Reduces employee turnover

10 Effective Training and Development Programs
Implement as soon as employees are hired Continue throughout employment Include follow-up to ensure that skills are being used Provide retraining and new skill development as necessary

11 Training and Development Activities
On-the-job training Coaching Mentoring Conferences & Seminars

12 Four Steps in Planning Training and Development
Determine needs. Design a program to meet the needs. Implement the program. Evaluate the program.

13 Paying employees Compensation should:
Be competitive with similar businesses in your area. Take the qualifications of employees into consideration.

14 Methods of Pay Wage: A fixed amount of pay per hour Productivity Pay
Piece Rate: Pays an amount based on units produced Commission: Pay based on percentage of sales Salary: Fixed amount of pay for a certain time period Combination: Combines a base salary plus commission

15 Benefits Employment rewards for service in addition to salary

16 Benefits Required by Law
Social Security Unemployment Compensation Worker’s Compensation

17 Optional Benefits Paid Vacations Paid Sick Leave
Health and Life Insurance Flextime Pensions Childcare


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