Chapter 18 Managing Human Resources in Entrepreneurial Firms

The Small Business Challenge • Why Entrepreneurship Is Important Ø Over one-half of the

How Small Business Human Resource Management Is Different Size of HR staff Priority of

The Entrepreneur’s Risky Human Resource Management Situation Underdeveloped HRM creates competitive disadvantage Lack of

Why HRM Is Important to Small Businesses • Effective HRM: Ø Is a competitive

Employment Training Resources for Small Businesses Private vendors Small Business Administration (SBA) Copyright ©

FIGURE 18– 5 Part of Small Business Administration’s Virtual Campus for Small Business Training

Having flexibility in providing work-life benefits and rewards Using simple, informal employee selection procedures

Managing HR Systems, Procedures, And Paperwork Manual HRM system Employee records are compiled on

TABLE 18– 1 Some Important Employment Forms New Employee Forms Current Employee Forms Application

Human Resource Management Information Systems (HRIS) • Levels of Information Systems Ø Transaction processing

All rights reserved. No part of this publication may be reproduced, stored in a

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Chapter 18 Managing Human Resources in Entrepreneurial Firms Part Five | Employee Relations Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Power. Point Presentation by Charlie Cook The University of West Alabama

The Small Business Challenge • Why Entrepreneurship Is Important Ø Over one-half of the U. S. labor force works for small firms. Ø Over 600, 000 small businesses are created annually. Ø Three-fourths of employment growth comes from small firms. • Why Is HRM Important to Small Businesses? Ø Growth of any small business depends on effective HR activities. Ø Getting and keeping large customers requires compliance with international quality (HR) standards. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 18– 4

How Small Business Human Resource Management Is Different Size of HR staff Priority of HR issues Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Informality of HR practices Entrepreneur’s effect on HRM 18– 5

The Entrepreneur’s Risky Human Resource Management Situation Underdeveloped HRM creates competitive disadvantage Lack of specialized HR expertise HR Risks in Small Businesses Increased potential for workplace litigation not addressed Compliance with compensation regulations and laws Lack of HRIS systems creates inefficiencies and data entry errors Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 18– 6

Why HRM Is Important to Small Businesses • Effective HRM: Ø Is a competitive necessity for small firms. Ø Makes small firms more successful. Ø Helps small firms get and keep large customers. Ø Is necessary to meet ISO-9000 requirements for competing internationally. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 18– 7

Employment Training Resources for Small Businesses Private vendors Small Business Administration (SBA) Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall National Association of Manufacturers (NAM) 18– 13

Having flexibility in providing work-life benefits and rewards Using simple, informal employee selection procedures Leveraging the Small Firm Size Advantage Providing flexibility in employee training procedures Treating nonfamily employees fairly and equitably Maintaining effective communications with employees Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 18– 15

Building Communication Building Effective Communications in Small Businesses Online reporting Newsletters Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Online information The Huddle 18– 16

Managing HR Systems, Procedures, And Paperwork Manual HRM system Employee records are compiled on forms from office supply companies and maintained in physical files Computerized HRM system Human Resource Management Information System (HRIS) One or more packaged systems for automating individual HR tasks, such as applicant tracking and performance appraisal Interrelated components collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualization of an organization’s HRM activities Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 18– 19

TABLE 18– 1 Some Important Employment Forms New Employee Forms Current Employee Forms Application New Employee Checklist Employment Interview Reference Check Telephone Reference Report Employee Manual Acknowledgement Employment Agreement Employee Application Disclaimer Probationary Evaluation Employee Status Change Request Employee Record Performance Evaluation Warning Notice Vacation Request Probation Notice Job Description Direct Deposit Acknowledgement Absence Report Disciplinary Notice Employee Secrecy Agreement Grievance Form Expense Report 401(k) Choices Acknowledgement Injury Report Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Employee Separation Forms Retirement Checklist Termination Checklist COBRA Acknowledgement Unemployment Claim Employee Exit Interview 18– 20

Human Resource Management Information Systems (HRIS) • Levels of Information Systems Ø Transaction processing systems Ø Management information systems (MIS) Ø Executive support systems • Benefits of HRIS Ø Improved transaction processing Ø Online self-processing Ø Improved reporting capability Ø HR systems integration Ø HR intranets Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 18– 21

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 18– 22