Unit 7 Managing Human Resources Small Business Operations.

Unit 7

Managing Human Resources

Small Business Operations

Organizing the Small Business

Organizing is the management function of arranging people, activities, and resources to accomplish the goals of the small business. Marketing, 3e, page 623

– Employees are the most important resource of any small business.

– Employees can determine the success or failure of any small business.

Frameworks 7.1

Human Resources

Human resources management consists of all the activities involved in acquiring, developing, and compensating the people who do the work of the small business. Business Principles and Management, 12e, page 616

– Most entrepreneurs will be responsible for recruiting, hiring, supervising, motivating, and rewarding the employees needed for the success of the small business.

– Small business owners must be sure that employees are satisfied with their jobs and motivated to perform well.

Frameworks 7.2

Characteristics of Good Organization

Responsibility is the obligation to do an assigned task. Business Principles and Management, 12e, page 337

– In a good organization, the assigned tasks are clearly identified so all employees know exactly the work for which they are responsible.

Frameworks 7.2.1

Authority is the right to make decisions about assigned work and to make assignments to others concerning the work. Business Principles and Management, 12e, page 338

– Authority is delegated from the top of the organization to others at lower levels.


Frameworks 7.2.1

Accountability is the obligation to accept responsibility for the outcomes of assigned tasks. Business Principles and Management, 12e, page 337

– Each employee must be held accountable for achieving the quality and quantity of the work they have been assigned.


Frameworks 7.2.1

Unity of command means that no employee reports to more than one supervisor at a time or for a particular task. Business Principles and Management, 12e, page 339

– Having more than one supervisor at a time creates confusion and arguments and results in low morale among employees.


Frameworks 7.2.1

Span of control is the number of employees that any one manager supervises directly. Business Principles and Management, 12e, page 339

– The manager who supervises too many people is overworked and unable to perform all duties effectively.


Frameworks 7.2.1

Employee empowerment is an approach to management that gives employees the authority to solve many customer problems. Marketing, 3e, page 27

– Small business owners must hire employees they can trust to make good decisions that are in the best interest of customers and the company.


Frameworks 7.2.1

Organizing the Small Business

An organization chart is a drawing that shows the structure of an organization, major job classifications, and the reporting relationships among the organization’s personnel. Business Principles and Management, 12e, pages 333-334

Frameworks 7.3An organization chart provides a visual picture of how

work is structured in a business.

Create an Organization Chart for the SBE

Frameworks 7.3.1

Marketing Teacher/DECA Advisor

General Manager Co-Manager

Team Member

Morning

Shift

Team Member

Morning

Shift

Team Member

Morning

Shift

Team Member

Afternoon

Shift

Team Member

Afternoon

Shift

Team Member

Afternoon

Shift

Selecting Personnel – The Job Description

A job description is a list of the basic tasks that make up a job. Business Principles and Management, 12e, page 623

– Write a job description for a position in the School Based Enterprise.

– Include all the duties and responsibilities of the job.

– Review the job description example that follows for the position of Barista.

Frameworks 7.3.2

Job Description: Barista (example)

Position Summary: The Barista is the foundation of the café. The Barista is responsible for honoring each and every customer by providing excellent customer service. He/she is also responsible for educating customers about our premium organic coffees and teas. The Barista is a true professional that fulfills any additional duties the Café Manager, Assistant Manager, or Shift Leader assigns. He/she displays a positive attitude at all times to ensure the return of our customers who are the reason for our business.

Essential Responsibilities: A Barista is responsible for the following during his/her shift:

Greets all customers with a friendly smile. Honors customers by providing quick, friendly, and personal service. Initiates dialogue and develops rapport with customers by learning their names, favorite

drinks and food items. Generates customer satisfaction; responds appropriately to customer concerns. Communicates customer complaints/concerns to manager on duty. Accurately processes transactions through the POS and counts back change to

customers. Answers the café telephone in a friendly manner using a professional greeting. Sells and serves baked goods and miscellaneous food items to customers. Maintains the highest level of standards for all product preparation. Adheres to all Company recipes and measurements.

Frameworks 7.3.2Source: www.greenbeanscoffee.com

Produces superior product presentation. Educates customers on products and services offered by the business. Provides top quality espresso shots for hot and cold beverages. Follows health, safety and sanitation guidelines for all products. Communicates with coworkers & management to solve problems and improve quality & service Maintains continuous communication with other staff functions (i.e. bar, register etc.)

during peak business times. Works with coworkers and management to effectively implement change. Contributes to a positive work environment. Assists in the opening and/or closing of the café. Makes effort to improve job skills, knowledge and education. Takes ownership of processes and quality improvements. Initiates suggestive selling and sampling of products. Does what needs to be done without being asked. Contributes to the profitability of the café by finding new methods of selling products. Honors themselves by taking pride in their appearance while adhering to the company dress code. Respects their peers and supervisors by being on time for every shift and finding coverage

for shifts they can’t work due to illness.

Frameworks 7.3.2

Job Description: Barista (continued)

Source: www.greenbeanscoffee.com

Create/evaluate a job application form for the SBE.

Selecting Personnel – The Application

Frameworks 7.4.1

APPLICATION FOR THE SCHOOL BASED ENTERPRISE Name ______________________________________

Home Phone _________________________________

Home Address ___________________________ Cell Phone _________________ Employment history: _________________________________________________ What are your plans after high school? ___________________________________ What is your career objective? __________________________________________Please list school activities that you are currently participating in: ___________________________________________________________________ Why do you wish to become part of the SBE team? ____________________________________________________________________

Selecting Personnel - Recruiting

After a need for a new employee has been established and a job description has been written, the small business owner must recruit job applicants. Sources of job applicants include:– Unsolicited applications or resumes. – Referrals from existing employees.– Internet submitted applications/resumes.– College and university placement

programs.– High school work-based learning

programs.

– Advertising in the local newspaper.

Source: Business Principles and Management, 12e, pages 623-624 Frameworks 7.4.2

Before conducting the job interview, BE PREPARED!

Review the applicant’s resume, application, and other information – Facebook, MySpace, etc.

Use an office, meeting room, or neutral site for the interview.

Have an evaluation form and take notes during and immediately after the interview.

Consider having 1 or 2 other key team members of the business participate in the job interview.

Selecting Personnel – The Interview

Frameworks 7.4.3

Ask the same, job related, questions of each applicant.– Tell us about yourself. – What five adjectives describe you best?– Why are you the best candidate for this position? – What will you bring to our business that others might not?– Tell us about your previous work experience and why you left.– What is your greatest strength? Greatest weakness?– Tell us about a bad decision you made and how you corrected it.– Tell us about a time when you helped resolve a dispute between

others.– Do you have questions for us?


Source: www.jobinterviewquestions.com Frameworks 7.4.3

Never ask questions related to the job applicant’s age, gender, ethnic background, health, disabilities, religious or political affiliations, marital status, spouse, or children. – Are you married? – Do you intend to get married?– Are you a single parent? – Do you live by yourself? – Do you have someone who can take care of a sick child? – Where does your spouse work? – What's your nationality? – Are you bilingual? (unless job related) – What church are you a member of? – With what political party are you affiliated? – What health problems do you have?


Source: www.usta.edu Frameworks 7.4.3

All interview questions should be related to the job. The above questions reflect illegal discrimination and could result in a lawsuit.

Promotion Vs. Transfer

A promotion is the advancement of an employee within the small business to a position with more authority and responsibility.

A transfer is the assignment of an employee to another job in the small business that involves the same level of responsibility and authority as the employee’s current job.

Source: Business Principles and Management, 12e, page 626 Frameworks 7.5.1

Employee Evaluation

Frameworks 7.5.2

Discharge Vs. Layoff

A discharge is the release of an employee from the company due to inappropriate work behavior.

A layoff is a temporary or permanent reduction in the number of employees because of a change in business conditions.


Employee Turnover

Employee turnover is the rate at which people enter and leave employment in a business during a year.– If the business has an

average of 15 employees and has to hire 10 employees during the year to maintain the staff at 15, what is the turnover rate?

• # of new hires (10) divided by average # of employees (15) = 66.6 %


Exit Interview

An exit interview is a formal interview with an employee who is leaving the small business to determine his or her attitudes about the business and suggestions for improvement. This is an opportunity to

learn about the causes of employee turnover.


End of Unit 7

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login. Use your first name (or anything you can remember!) as

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cdorman and find Mr. Dorman’s dashboard. Open the Subjects folder “Small Business Operations.” Study the flashcards. Use the test feature and use the scatter feature.

Unit 7 Managing Human Resources Small Business Operations.

Documents

business principles

small business organizing

small business owners

organization chart

management function

good decisions

number of employees

outcomes of assigned