section three managing human resources in small & mid business “people, including managers,...
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Section Three MANAGING HUMAN RESOURCES
IN SMALL & MID BUSINESS
“People, including managers, can make or break a business.”
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I. Managing people is complicated
• Governmental rules and regulations
• New generation are looking for challenge, incentive and opportunity to learn, to be creative and to advance
• Huge expenses:
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II. Why HRM Difficult in SME
• 1. Small size
• 2. Disadvantages in compensation system
• 3. Low industrial interest • 4. Personality of the business owner
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III. Recruiting in Small Business
• Best people for the key positions
• Internal recommendation
• Find a specific manager for recruitment
• Provide shares
• Be a nice boss
• Organizational culture
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IV. Training in Small Business
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1. Purpose of Training and Development
• 1) Creating a pool of readily available and adequate replacements
• 2) Enhancing the company's ability to adopt and use advances in technology
• 3) Building a more efficient, effective and highly motivated team
• 4) Ensuring adequate human resources for expansion into new programs.
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2.Benefits a small business receives from T&D
• 1) Increased productivity.
• 2) Reduced employee turnover.
• 3) Increased efficiency resulting in financial
gains.
• 4) Decreased need for supervision.
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1) Organizational Objectives
2) Needs Assessment
3) Is there a gap?
4) Training Objectives
5) Select the Trainees
3. Steps in the Training Process
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Steps in the Training Process
6) Select the Training Methods & Mode
7) Choose a Means of Evaluating
8) Administer Training
9) Evaluate the Training
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4. Training Methods
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1) Orientations
• For new employees
• The company's history and mission.
• The key members in the organization.
• The key members in the department, and how the
department helps fulfill the mission of the company.
• Personnel rules and regulations.
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2) Lectures
• present training material verbally and are used when the goal is to present a great deal of material to many people.
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3) Role playing and simulation
• attempt to bring realistic decision-making situations to the trainee. Likely problems and alternative solutions are presented for discussion.
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4) Audiovisual method
• such as television, videotapes and films are the most effective means of providing real world conditions and situations in a short time.
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5) Job rotation
• moving an employee through a series of
jobs so he or she can get a good feel for the
tasks that are associated with different jobs
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6) Apprenticeships
• develop employees who can do many different tasks. They usually involve several related groups of skills that allow the apprentice to practice a particular trade, and they take place over a long period of time in which the apprentice works for, and with, the senior skilled worker.
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7) Internships and assistantships
• a combination of classroom and on-the-job training.
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8) Programmed learning, computer-aided instruction and interactive video
• they allow the trainee to learn at his or her own place.
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9) Laboratory training
• conducted for groups by skilled trainers.
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Training Techniques & Activities(On-the-job)
Orientingnewemployees
Specialskilltraining
Creative,technical &professionaleducation,
Sales,administrative,supervisory andmanagerialeducation
Orientation *
Apprentice * * * *
Internship * * *
Jobrotation *
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Training Techniques & Activities(Off-the-job)
Orientingnewemployees
Specialskilltraining
Creative,technical &professionaleducation,
Sales,administrative,supervisory andmanagerialeducation
Lecture * * * *
Films * * * *
Television * * * *
Conferences * * *
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Training Techniques & Activities(Off-the-job)
Orientingnewemployees
Specialskilltraining
Creative,technical &professionaleducation,
Sales,administrative,supervisory andmanagerialeducation
Roleplaying *
Simulation * * *
Programmed * * * *
Laboratory *
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Most small business owners want to
succeed, but do not engage in training
designs that promise to improve their
chances of success.
WHY?
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5. Reasons training is ignored
• Time
• Getting started
• Broad expertise
• Lack of trust and openness
• Skepticism as to the value of the training
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V. Building Employee Trust
• Trust cannot be created by excessive wages, great company picnics or wonderful working conditions; it can only be generated through teamwork, honesty and fairness.
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Three attributes of trust in successful small businesses
• Open and honest
• Consistent and fair
• Communications
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Honesty• Take time to talk with your workers.
• Find out what they're thinking.
• Find out what they'd like to know and tell them whenever possible.
• Don't tell only good things.
• Allow employees an opportunity to provide you, the owner, with information, questions and suggestions. In this way, communications are two way.
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VI. Strategic decision: When a firm needs a HR manager
• The firm has more than 100 employees.
• Turnover is very high (and costly).
• The need for skilled or semiskilled labor creates problems in recruitment or selection.
• Employee morale is low.
• Competition for good personnel is especially keen in the market area.
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Buy vs. DIY
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Professional Employer Organization
• Employee Leasing Firm
• Why use PEO
• Pitfalls in PEO– Limited Responsibility– Loose contact– Higher cost