Managing People
Learning Resources
Topic Review
1.Obtaining professional services
a.Accountants and bookkeepers
i.Tasks accomplished
1.Set up a chart of accounts for tracking income and expenses
2.Establish effective cash-handling procedures
3.Set up payroll accounting procedures
4.Advise on tax strategies
5.Prepare tax returns
6.Assist with financial and retirement planning
ii.Reduce accounting costs by hiring a bookkeeper instead
iii.Hiring an accountant
1.look for one with experience in the industry
2.check with other local businesses
3.contact the Chamber of Commerce
b.Advertisers
i.Provide information about the market in terms of age, income level, education, etc.
ii.Help target advertising message
iii.Provide theme based advertising venues that feature holidays and other special events
iv.Offer advertising packages that allow you to stretch your advertising dollar
c.Consultants
i.Help with planning a project or making an important decision
ii.Small Business Development Centers
1.business start up information
2.business plan development
3.financial projections
4.marketing assistance
5.financial information
6.new product development
7.family business transition
d.Service Core of Retired Executives (SCORE)
e.Insurance agents
i.Liability insurance
ii.Property insurance
iii.Workers’ compensation insurance
iv.Link to Entrepreneur’s help page
f.Lawyers
i.Choosing the right business structure
ii.Preparing and interpreting leases and contracts
iii.Defending your interests in legal actions
iv.Providing advice in day-to-day operations
v.Legal specialists
1.patent attorneys
2.U.S. Patent and Trademark Office
vi.questions to ask when deciding on a lawyer
1.What experience does the lawyer or legal firm have? Are they familiar with your line of business?
2.How many other clients does the lawyer represent? Do they have time to represent your interests? Are there any potential conflicts of interest?
3.What is the lawyer’s fee structure? Are you required to pay a retainer?
g..Federal, State, and Local government agencies
i.Internal Revenue Service
ii.Federal Occupational Health and Safety Administration (OSHA)
iii.New York State Department of Taxation and Finance
iv.Town clerks
2.Supplier relations
a.Total Quality Management (TQM) demands good supplier relations
b.Suppliers/Vendors
i.Professional
1.accountants
2.lawyers
3.insurance agents
4.utility companies
5.landlords
ii.Service
1.maintenance and repair
2.plumbing
iii.Materials
1.raw materials
2.finished goods
c.finding locating suppliers
i.libraries
ii.internet search
iii.trade associations
iv.trade publications
v.personal contacts
vi.competitor’s product lines
d.types of suppliers
i.Original Equipment Manufacturer (OEM)
1.raw materials producer or component manufacturer
2.usually sell to those companies that buy large amounts of goods
3.better technical support than a retailer
4.provide contract (stable) prices
ii.Distributor
1.purchases, warehouses, and resells OEM items to retailer
2.have smart sales people who provide good service
3.better technical support than a retailer
4.provide contract (stable) prices
iii.retailer
1.sells OEM acquired or Distributor acquired items to customer
2.may be a more time consuming purchase
3.prices tend to fluctuate over time
iv.considerations
1.quality
2.inventory available for purchase
3.minimum inventory amount that must be purchased
4.trade finance
5.business/personal relationships with suppliers
3.Employees and compensation
a.Employees equal human capital
b.Steps
i.Develop a job description
1.duties
2.qualifications
3.working conditions
4.equipment used
5.knowledge and skills used
6.relationships with other positions and employees
7.link to sample job description
ii.get as many qualified applicants as possible
1.internal recruitment
2.employee referrals
3.advertising
4.schools/colleges
5.private employment agencies
6.other businesses
7.chamber of commerce
8.walk-ins
iii.choosing the best applicant for the job
1.can the applicant do the job and will the applicant do the job?
2.interview at this stage
3..look into all references (LIAR)
4.How to keep good employees
a.Employee retention
i.Advantages of High employee retention
1.reliable employees
2.motivated team
3.increased efficiency
4.low recruitment, selection and training costs
ii.Disadvantages of Low employee retention
1.high recruitment and selection costs
2.high training costs
3.low employee motivation and happiness
4.bad company image
b.performance evaluation
i.purposes
1.allow staff and managers to discuss performance aims
2.measure current performance
3.identify training needs
4.help staff with performance improvement
5.reward staff that have performed well by giving compensation or advancement
6.be a first step for discipline or dismissal, if bad employee performance continues
c.GRAPE theory of employee retention
i.Meaning
1.Growth
2.Recognition
3.Achievement
4.Participation
5.Effort (on behalf of management)
ii.GRAPE tools
1.job enrichment
2.job flexibility
3.special project
4.objective setting
d.Employee training
i.Advantages
1.higher quality and quantity of work
2.higher staff happiness and retention
3.lower accidents
4.lower waste
5.lower need for close watch of employees
ii.methods
a.on the job
1.low cost
2.ties up workers
3..need a skilled teacher
4.most commonly used method
5.fits employee to the requirements of the job
6.develops confidence
7.corrects incorrect methods
b.apprentice
1.easy to measure progress
2.government programs available
3.high cost
4.time taken away from skilled workers
c.role playing
1.helps to air views
2.can help to understand management styles
3.can become expensive
d.coaching
1.designed for each employee
2.low cost
3.ties up a supervisor
e.classroom
1.many people can be taught at once
2.low cost
3.limited interaction
v. job rotation
a.good for morale
b.variety of skills developed
c.skilled employee base are able to fulfill many different tasks
d.requires a large number of people and jobs for effective use
e.may raise hopes too far
iv.Employee compensation
a.Pay
b.pay enough to attract and keep good employees
vii.Benefits
a.legally required benefits
1.social security
2.workers’ compensation insurance
3.federal unemployment insurance
4.state unemployment insurance
5.employee disability insurance
6. jury duty pay
7.parental and medical leave
b.direct cash benefits
1.medical expense benefits
2.life, accident and health insurance
3.disability income insurance
4.retirement plans
5.profit sharing
6.dental care, prescription drug, vision care, group life plans
7.legal services
c.Indirect cash benefits
1.Paid holidays
2.Paid vacations
3.Paid sick leave
4.Paid time off: funeral, personal days, dental or medical appointments
5.Free lunch, uniform, transportation
6.Educational benefits
7.Recreational services (health club memberships)
d.non cash benefits
1.flexible time schedules
2.job sharing
3.coffee breaks
4.childcare
5.release time
6.personal use of company equipment
7.access to company legal and accounting help
viii.employee handbook
a.explains attitudes, procedures, policies, benefits, restrictions and expectations
b.provides method of communication, sets efficient standards, prevents misunderstandings
c.contents
1.welcome (values)
2.Introduction (list of company achievements)
3.operational procedures (employment grades, payroll, working hours, performance review, salary review, use of company property and equipment)
4.employee benefits
5.policies (equal opportunity statement, sexual harassment policy)
6.employee duties (attendance, performance, dress code, disciplinary procedures, resignations)
7.other information (list of emergency information)
8.employee agreement (acknowledgement of reading the handbook)
a.Accountants and bookkeepers
i.Tasks accomplished
1.Set up a chart of accounts for tracking income and expenses
2.Establish effective cash-handling procedures
3.Set up payroll accounting procedures
4.Advise on tax strategies
5.Prepare tax returns
6.Assist with financial and retirement planning
ii.Reduce accounting costs by hiring a bookkeeper instead
iii.Hiring an accountant
1.look for one with experience in the industry
2.check with other local businesses
3.contact the Chamber of Commerce
b.Advertisers
i.Provide information about the market in terms of age, income level, education, etc.
ii.Help target advertising message
iii.Provide theme based advertising venues that feature holidays and other special events
iv.Offer advertising packages that allow you to stretch your advertising dollar
c.Consultants
i.Help with planning a project or making an important decision
ii.Small Business Development Centers
1.business start up information
2.business plan development
3.financial projections
4.marketing assistance
5.financial information
6.new product development
7.family business transition
d.Service Core of Retired Executives (SCORE)
e.Insurance agents
i.Liability insurance
ii.Property insurance
iii.Workers’ compensation insurance
iv.Link to Entrepreneur’s help page
f.Lawyers
i.Choosing the right business structure
ii.Preparing and interpreting leases and contracts
iii.Defending your interests in legal actions
iv.Providing advice in day-to-day operations
v.Legal specialists
1.patent attorneys
2.U.S. Patent and Trademark Office
vi.questions to ask when deciding on a lawyer
1.What experience does the lawyer or legal firm have? Are they familiar with your line of business?
2.How many other clients does the lawyer represent? Do they have time to represent your interests? Are there any potential conflicts of interest?
3.What is the lawyer’s fee structure? Are you required to pay a retainer?
g..Federal, State, and Local government agencies
i.Internal Revenue Service
ii.Federal Occupational Health and Safety Administration (OSHA)
iii.New York State Department of Taxation and Finance
iv.Town clerks
2.Supplier relations
a.Total Quality Management (TQM) demands good supplier relations
b.Suppliers/Vendors
i.Professional
1.accountants
2.lawyers
3.insurance agents
4.utility companies
5.landlords
ii.Service
1.maintenance and repair
2.plumbing
iii.Materials
1.raw materials
2.finished goods
c.finding locating suppliers
i.libraries
ii.internet search
iii.trade associations
iv.trade publications
v.personal contacts
vi.competitor’s product lines
d.types of suppliers
i.Original Equipment Manufacturer (OEM)
1.raw materials producer or component manufacturer
2.usually sell to those companies that buy large amounts of goods
3.better technical support than a retailer
4.provide contract (stable) prices
ii.Distributor
1.purchases, warehouses, and resells OEM items to retailer
2.have smart sales people who provide good service
3.better technical support than a retailer
4.provide contract (stable) prices
iii.retailer
1.sells OEM acquired or Distributor acquired items to customer
2.may be a more time consuming purchase
3.prices tend to fluctuate over time
iv.considerations
1.quality
2.inventory available for purchase
3.minimum inventory amount that must be purchased
4.trade finance
5.business/personal relationships with suppliers
3.Employees and compensation
a.Employees equal human capital
b.Steps
i.Develop a job description
1.duties
2.qualifications
3.working conditions
4.equipment used
5.knowledge and skills used
6.relationships with other positions and employees
7.link to sample job description
ii.get as many qualified applicants as possible
1.internal recruitment
2.employee referrals
3.advertising
4.schools/colleges
5.private employment agencies
6.other businesses
7.chamber of commerce
8.walk-ins
iii.choosing the best applicant for the job
1.can the applicant do the job and will the applicant do the job?
2.interview at this stage
3..look into all references (LIAR)
4.How to keep good employees
a.Employee retention
i.Advantages of High employee retention
1.reliable employees
2.motivated team
3.increased efficiency
4.low recruitment, selection and training costs
ii.Disadvantages of Low employee retention
1.high recruitment and selection costs
2.high training costs
3.low employee motivation and happiness
4.bad company image
b.performance evaluation
i.purposes
1.allow staff and managers to discuss performance aims
2.measure current performance
3.identify training needs
4.help staff with performance improvement
5.reward staff that have performed well by giving compensation or advancement
6.be a first step for discipline or dismissal, if bad employee performance continues
c.GRAPE theory of employee retention
i.Meaning
1.Growth
2.Recognition
3.Achievement
4.Participation
5.Effort (on behalf of management)
ii.GRAPE tools
1.job enrichment
2.job flexibility
3.special project
4.objective setting
d.Employee training
i.Advantages
1.higher quality and quantity of work
2.higher staff happiness and retention
3.lower accidents
4.lower waste
5.lower need for close watch of employees
ii.methods
a.on the job
1.low cost
2.ties up workers
3..need a skilled teacher
4.most commonly used method
5.fits employee to the requirements of the job
6.develops confidence
7.corrects incorrect methods
b.apprentice
1.easy to measure progress
2.government programs available
3.high cost
4.time taken away from skilled workers
c.role playing
1.helps to air views
2.can help to understand management styles
3.can become expensive
d.coaching
1.designed for each employee
2.low cost
3.ties up a supervisor
e.classroom
1.many people can be taught at once
2.low cost
3.limited interaction
v. job rotation
a.good for morale
b.variety of skills developed
c.skilled employee base are able to fulfill many different tasks
d.requires a large number of people and jobs for effective use
e.may raise hopes too far
iv.Employee compensation
a.Pay
b.pay enough to attract and keep good employees
vii.Benefits
a.legally required benefits
1.social security
2.workers’ compensation insurance
3.federal unemployment insurance
4.state unemployment insurance
5.employee disability insurance
6. jury duty pay
7.parental and medical leave
b.direct cash benefits
1.medical expense benefits
2.life, accident and health insurance
3.disability income insurance
4.retirement plans
5.profit sharing
6.dental care, prescription drug, vision care, group life plans
7.legal services
c.Indirect cash benefits
1.Paid holidays
2.Paid vacations
3.Paid sick leave
4.Paid time off: funeral, personal days, dental or medical appointments
5.Free lunch, uniform, transportation
6.Educational benefits
7.Recreational services (health club memberships)
d.non cash benefits
1.flexible time schedules
2.job sharing
3.coffee breaks
4.childcare
5.release time
6.personal use of company equipment
7.access to company legal and accounting help
viii.employee handbook
a.explains attitudes, procedures, policies, benefits, restrictions and expectations
b.provides method of communication, sets efficient standards, prevents misunderstandings
c.contents
1.welcome (values)
2.Introduction (list of company achievements)
3.operational procedures (employment grades, payroll, working hours, performance review, salary review, use of company property and equipment)
4.employee benefits
5.policies (equal opportunity statement, sexual harassment policy)
6.employee duties (attendance, performance, dress code, disciplinary procedures, resignations)
7.other information (list of emergency information)
8.employee agreement (acknowledgement of reading the handbook)