Ch.10
Learning Objectives
Human Resource Needs
Explain how small business managers plan human resource needs and develop sources from which to recruit employees.
Recruitment Methods
Name some methods used for recruiting human resources and describe the steps in the employee selection process.
Employee Development
Explain the importance of employee development and discuss some development methods.
Learning Objectives (Continued)
Selection of Managers vs. Nonmanagerial Employees
Tell how selection of managers differs from selection of nonmanagerial employees and describe some methods of manager development.
Laws Affecting HR Practices
Discuss the laws that affect recruiting, selection, and development.
Compensation
Describe how to compensate employees with money and employee benefits.
Factors Influencing Employee Health and Safety
Employee Health and Safety Factors
List some factors influencing employee health and safety and tell how to safeguard employees in small firms.
Staffing
Definition of Staffing
Staffing involves planning for, recruiting, selecting, training, and developing employees, as well as compensating them and providing for their health and safety.
Planning for Human Resource Needs
Key Steps for Small Businesses
Determine HR Needs: Identify which human resources are needed.
Develop Recruitment Sources: Create sources for recruiting future employees, particularly from diverse ethnic groups.
Determining Types of Employees Needed
Job Specifications
Definition: Detailed written statements of work assignments and qualifications needed to do the job acceptably.
Components: Mental, physical and other qualifications of a person to do the job.
Job Descriptions
Definition: Lists the duties and responsibilities of a given job.
Inclusions:
Working conditions and relationships with other jobs.
Should be reviewed and signed by employer and employee to prevent misunderstandings.
Components of a Simplified Job Description and Job Specification
Identification Components:
Job title, department, code, salary range, supervisor, etc.
Job Description Elements:
Physical demands and minimum requirements.
Working conditions (psychological and interpersonal dynamics).
Summary of duties and responsibilities.
Days and hours of work.
Machines, tools, and equipment used.
Job Specifications Elements:
Required educational background, skills, training, and experience.
Personal characteristics like sociability and articulateness.
Where to Find Needed Employees
Internal Sources:
Upgrading: Retraining workers for complex work.
Transferring: Moving an employee to another job without changing title or pay.
Promoting: Moving an employee to a higher position with increased responsibilities and pay; enhances morale and motivation.
External Sources for Employee Recruitment
Sources of Recruitment:
Former employees, friends, relatives, applications, social and professional organizations, retirees, part-time and temporary workers.
Leased Manpower: Employees from an outside firm specializing in a service.
Methods of Recruiting Employees
Definition of Recruitment: Reaching out to attract applicants to fill job vacancies.
Strategies:
Asking current employees for referrals and providing finders' fees.
Searching for senior workers over 55 due to dependability.
Considering internships through universities.
Utilizing local church bulletins for recruitment.
Being specific when asking about job-related talents.
Networking as a Recruitment Method
Definition of Networking: The process of establishing and maintaining contacts with key persons in one's or another organization for development or promotion.
Methods of Selecting the Right Person for the Job
Selection Process:
Involves choosing the applicant with the qualifications to perform the job.
Selection Procedure Steps:
Gathering information about the applicant.
Making a job offer.
Orienting the new employee.
General Topics to Avoid When Interviewing Applicants
Sensitive Topics:
Children: Do not inquire about children or child care plans.
Age: Do not ask about age unless job-specific.
Disabilities: Avoid questions about physical or mental disabilities.
Physical Characteristics: Avoid asking for height, weight, or other identifying traits.
Citizenship: Do not ask about citizenship status except as needed for legal work requirements.
Name: Do not ask female candidates for their maiden name.
Lawsuits: Avoid inquiries about previous lawsuits against former employers.
Arrest Records: Do not ask about arrest records before hiring.
Smoking: Avoid questions about smoking habits due to potential legal issues.
AIDS and HIV: Do not ask about AIDS or HIV status.
Preemployment Tests and Validity
Definition of Validity: Ensuring that the tests correspond to job performance.
Polygraph Tests: An instrument to record physiological variations; usage banned by Congress for private employers.
Interviewing Applicants in Depth
In-depth Interviews: Detailed, probing discussions aiming to assess the applicant's character and personality.
Improving the Interview Process
Key Improvement Strategies:
Avoid obvious and legally indefensible questions.
Ask the right questions and evaluate answers accurately.
Refrain from placing too much focus on self-evaluation or first impressions.
Recognize important clues and avoid over-relying on past credentials.
Training and Developing Employees
Benefits of Training:
Increased productivity, reduced turnover, improved employee satisfaction, and decreased material costs.
Methods of Training Nonmanagerial Employees
Training Methods:
On-the-job training (OJT): Workers perform the job under supervision, learning through practice.
Apprenticeship Training: Combines OJT with theoretical classroom learning.
Internship Training: Blends OJT with academic instruction.
Cross-training: Enables workers to learn multiple skills for versatility.
E-training: Involves computer interaction for training.
Methods Used to Develop Managers
Recruitment Methods:
Similar to nonmanagerial recruitment but focused on management characteristics and development opportunities.
Laws Providing for Equal Employment Opportunity
Americans with Disabilities Act (ADA): Requires removal of barriers to employment for disabled individuals, covering a range of disabilities.
Enforcing EEO Laws
Equal Employment Opportunity Commission (EEOC): Federal agency enforcing EEO laws.
Affirmative Action Programs (AAPs): Guidelines to eliminate discrimination against women and minorities.
Principal EEOC Regulations
Key Topics Covered:
Sex and religious discrimination guidelines, age discrimination interpretations, employee selection guidelines, accountability measures.
Using Money to Motivate Employees
Compensation Strategies:
Merit Increases: Based on performance.
Incentive Wages: Extra compensation for production over a specified amount.
Commission: Compensation linked to sales or profits.
Bonuses: Non-specified rewards for special efforts.
Profit Sharing: Employees receive a share of company profits.
Employee Stock Ownership Plans (ESOP): Employees earn shares through company performance and longevity.
Providing Employee Benefits
Definition of Employee Benefits: Rewards and services beyond regular earnings.
Popular Benefits:
Legally Required: Social Security, workers' compensation, unemployment insurance, family and medical leave.
Voluntary: Health insurance, dental care, retirement plans, and various other services.
Legally Required Benefits
Health Insurance: Required under the Affordable Care Act of 2010.
Social Security: Federal program for retiree support.
Unemployment Insurance: Financial aid for laid off workers.
Legally Required Benefits (Continued)
Workers' Compensation: Payments for on-the-job injuries.
Family and Medical Leave Act: Unpaid leave rights for family and medical situations.
Some Other Popular Benefits
Benefit Plans:
Defined-contribution plans: Employer contributions to funds.
Defined-benefit plans: Set retirement amounts.
401(k) plans: Deferred earnings for tax savings.
Cafeteria-style plans: Employees select benefits according to their preferences.
Factors Influencing Workers’ Health and Safety
Influencing Factors:
Type of industry, type of occupation, human variables.
Repetitive Stress Injuries: Cumulative trauma disorders leading to muscular/skeletal issues, such as carpal tunnel syndrome.
Prevention of Injury
Injury Prevention Measures:
Training on proper lifting, ergonomic equipment, and safety practices.
Safety Equipment: Provide necessary tools, adjust workspaces to be ergonomic, and mitigate hazards.
The Role of the Occupational Safety and Health Act
Occupational Safety and Health Administration (OSHA): Establishes safety standards and provides resources for injury prevention.
Appendices
Supplementary Information: Diagrams, additional resources, and methods regarding recruitment and employee training strategies.
Learning Objectives
Human Resource Needs
Explain how small business managers plan human resource needs and develop sources from which to recruit employees.
Recruitment Methods
Name some methods used for recruiting human resources and describe the steps in the employee selection process.
Employee Development
Explain the importance of employee development and discuss some development methods, including specific approaches for managers.
Learning Objectives (Continued)
Selection of Managers vs. Nonmanagerial Employees
Tell how selection strategies for managers differ from those for nonmanagerial employees and describe various methods of manager development.
Laws Affecting HR Practices
Discuss the key federal laws that impact recruiting, selection, and development processes, including their enforcement agencies.
Compensation
Describe various ways to compensate employees with both direct monetary payments and indirect employee benefits, including legally required and voluntary options.
Factors Influencing Employee Health and Safety
Employee Health and Safety Factors
List and explain some critical factors influencing employee health and safety, and outline practical strategies to safeguard employees in small firms, adhering to regulatory standards.
Staffing
Definition of Staffing
Staffing is a foundational human resource management function involving the systematic process of planning for, recruiting, selecting, training, and developing employees. It also encompasses compensating them fairly and providing for their health and safety to ensure a productive and engaged workforce aligned with organizational goals.
Planning for Human Resource Needs
Key Steps for Small Businesses
Determine HR Needs: This involves analyzing the organization's strategic objectives and forecasting future staffing requirements. Managers must identify not only how many employees are needed but also what specific skills, experience, and competencies these employees must possess to meet business demands and maintain operational efficiency.
Develop Recruitment Sources: Creating a robust pipeline of potential candidates requires identifying and cultivating various internal and external sources. Special emphasis should be placed on developing diverse recruitment channels to foster an inclusive workplace and comply with equal employment opportunity guidelines.
Determining Types of Employees Needed
Job Specifications
Definition: Job specifications are detailed written statements outlining the essential qualifications, skills, knowledge, and abilities (KSAs) required for a person to competently perform the duties of a specific job. They focus on the individual characteristics necessary to succeed in a role.
Components: These typically include mental capacities (e.g., problem-solving ability, analytical skills), physical requirements (e.g., lifting capacity, dexterity), and other crucial qualifications such as personality traits (e.g., teamwork, communication skills), educational background, and specific certifications.
Job Descriptions
Definition: A job description is a formal document that systematically lists the primary duties, responsibilities, and tasks associated with a given job. It defines the job itself, rather than the person doing it.
Inclusions:
Working conditions: This covers both the physical environment (e.g., office, factory floor, exposure to hazards) and the psychological/interpersonal dynamics (e.g., level of supervision, teamwork requirements, stress levels).
Relationships with other jobs: Specifies reporting lines (who the employee reports to and who reports to them) and key internal and external contacts.
To prevent misunderstandings, enhance clarity, and serve as a basis for performance evaluations, job descriptions should ideally be reviewed and signed by both the employer and employee.
Components of a Simplified Job Description and Job Specification
Identification Components: These provide essential administrative details such as the job title, the department or division where the role resides, an internal code, the designated salary range or pay grade, and the title of the immediate supervisor.
Job Description Elements:
Physical demands and minimum requirements: Specific actions or capabilities needed (e.g., ability to sit for long periods, fine motor skills).
Working conditions: A detailed breakdown of the physical and psychological environment, including potential hazards, noise levels, temperature, and interpersonal dynamics.
Summary of duties and responsibilities: A concise overview of the job's main functions and the key tasks performed.
Days and hours of work: Expected work schedule, including any rotational shifts or overtime requirements.
Machines, tools, and equipment used: A list of specialized instruments or software necessary for the job.
Job Specifications Elements:
Required educational background, skills, training, and experience: Specifies minimum academic qualifications (e.g., high school diploma, bachelor’s degree), technical skills (e.g., software proficiency), vocational training, and the amount and type of prior work experience deemed essential.
Personal characteristics: Details desirable aptitudes and traits, such as sociability, articulateness, leadership potential, problem-solving skills, and attention to detail, which contribute to job success and cultural fit.
Where to Find Needed Employees
Internal Sources: Leveraging existing employees often boosts morale and reduces recruitment costs.
Upgrading: This involves providing current workers with additional training and development to enable them to perform more complex or advanced work within the organization, often leading to a promotion or increased responsibilities.
Transferring: Moving an employee to a different job within the company, typically at the same organizational level and without significant changes in title or pay. Transfers can be used to broaden an employee's experience, fill temporary vacancies, or improve team dynamics.
Promoting: Elevating an employee to a higher position with significantly increased responsibilities, authority, and often, higher pay. Promotions serve as a powerful motivator, enhance employee morale, recognize past performance, and provide clear career paths.
External Sources for Employee Recruitment
Sources of Recruitment: When internal talent is insufficient, businesses turn to external avenues.
Former employees: Past employees who left on good terms or have retired may be excellent re-hires, bringing back valuable knowledge and experience.
Friends and relatives of current employees: Leveraging employee networks can yield trustworthy candidates, often referred through internal referral programs with finders' fees.
Unsolicited applications and resumes: Direct applications received online or in person can be a continuous source of talent.
Social and professional organizations: Industry-specific associations, online platforms (e.g., LinkedIn), and diversity organizations can connect businesses with specialized talent.
Retirees: Experienced individuals who have retired may be willing to return to work part-time or on a consulting basis, offering a wealth of knowledge.
Part-time and temporary workers: Flexible options for seasonal needs, special projects, or to assess fit before full-time hiring.
Leased Manpower: This involves contracting with an outside professional employer organization (PEO) that specializes in providing specific services or a workforce. The PEO typically handles payroll, benefits, and HR compliance, allowing the small business to access skilled labor without the administrative burden.
Methods of Recruiting Employees
Definition of Recruitment: Recruitment is the active process of identifying, attracting, and screening a sufficient number of qualified individuals to apply for open job vacancies in an organization. The goal is to create a diverse pool of candidates to choose from.
Strategies:
Asking current employees for referrals: Implementing structured employee referral programs that offer finders' fees incentivizes employees to recommend qualified candidates from their networks, often leading to better cultural fit and retention.
Searching for senior workers over 55: Actively seeking out experienced individuals due to their proven dependability, strong work ethic, and wealth of knowledge. This group often represents a stable and dedicated workforce.
Considering internships through universities: Establishing partnerships with colleges and universities to offer internships provides a pipeline for future talent, allows for 'try before you buy' evaluation, and brings fresh perspectives to the company.
Utilizing local church bulletins for recruitment: For certain community-oriented roles or to reach specific demographics, local community bulletins can be an effective, low-cost recruitment channel.
Being specific when asking about job-related talents: Crafting job postings and recruitment conversations to clearly articulate the required skills, responsibilities, and expectations helps attract candidates who are genuinely qualified and interested in the specific demands of the role.
Networking as a Recruitment Method
Definition of Networking: Networking in recruitment is the strategic process of establishing and maintaining mutually beneficial relationships with key individuals, industry influencers, and professional communities, both within and outside one's organization. This is done with the explicit purpose of identifying potential candidates, gaining insights into talent pools, and promoting career development or securing promotions for identified individuals.
Methods of Selecting the Right Person for the Job
Selection Process:
The selection process is a systematic procedure involving multiple steps designed to filter through the applicant pool and identify the candidate with the optimal qualifications, skills, and cultural fit to perform the job successfully. It aims to maximize person-job and person-organization fit.
Selection Procedure Steps:
Gathering information about the applicant: This often begins with application forms and resumes, followed by initial screenings, interviews, background checks, reference checks, and potentially pre-employment tests.
Making a job offer: Extending a formal offer of employment to the selected candidate, detailing salary, benefits, start date, and other terms of employment.
Orienting the new employee: Once the offer is accepted, a structured orientation program helps the new hire integrate into the company culture, understand their role, and become productive quickly.
General Topics to Avoid When Interviewing Applicants
Sensitive Topics: To ensure compliance with anti-discrimination laws (such as Title VII of the Civil Rights Act, ADA, and ADEA) and promote fair hiring practices, interviewers must strictly avoid questions that could be perceived as discriminatory or intrusive.
Children: Do not inquire about family planning, number of children, child care arrangements, or intentions to have children.
Age: Avoid direct questions about age or birth date, or questions that could infer age, unless age is a bona fide occupational qualification (BFOQ).
Disabilities: Do not ask about the existence, nature, or severity of physical or mental disabilities. Focus on the applicant's ability to perform essential job functions with or without reasonable accommodation.
Physical Characteristics: Avoid asking for height, weight, race, or other identifying traits that are not directly relevant to job performance.
Citizenship: Do not ask about citizenship status except as necessary to verify legal authorization to work in the U.S. (e.g., asking if they are legally authorized to work, not their country of origin).
Name: Do not ask female candidates for their maiden name; this can imply marital status discrimination.
Lawsuits: Avoid inquiries about previous lawsuits or workers' compensation claims against former employers.
Arrest Records: Do not ask about arrest records before hiring, as arrests do not prove guilt. Conviction records may be inquired about only if job-related and consistent with business necessity.
Smoking: Avoid questions about smoking habits or other lifestyle choices, as these are generally not job-related and can lead to privacy or discrimination claims.
AIDS and HIV: Absolutely do not ask about AIDS or HIV status, as this falls under disability discrimination.
Preemployment Tests and Validity
Definition of Validity: Validity in pre-employment testing refers to the extent to which a test accurately measures what it is intended to measure and genuinely predicts successful job performance. There are several types:
Content Validity: The test samples knowledge or skills directly representative of the job.
Criterion-Related Validity: The test scores correlate with actual job performance (e.g., higher test scores predict higher productivity).
Construct Validity: The test accurately measures an abstract construct (e.g., intelligence, leadership potential) that is essential for the job.
Polygraph Tests: An instrument used to record physiological variations that supposedly indicate deception. The Employee Polygraph Protection Act of 1988 largely banned the use of polygraph tests by private employers for pre-employment screening, with limited exceptions for certain security-related jobs.
Interviewing Applicants in Depth
In-depth Interviews: These are detailed, structured, or semi-structured conversations designed to go beyond surface-level information. They involve probing discussions that utilize behavioral (e.g.,
Learning Objectives
Human Resource Needs
Explain how small business managers plan human resource needs and develop sources from which to recruit employees.
Recruitment Methods
Name some methods used for recruiting human resources and describe the steps in the employee selection process.
Employee Development
Explain the importance of employee development and discuss some development methods, including specific approaches for managers.
Learning Objectives (Continued)
Selection of Managers vs. Nonmanagerial Employees
Tell how selection strategies for managers differ from those for nonmanagerial employees and describe various methods of manager development.
Laws Affecting HR Practices
Discuss the key federal laws that impact recruiting, selection, and development processes, including their enforcement agencies.
Compensation
Describe various ways to compensate employees with both direct monetary payments and indirect employee benefits, including legally required and voluntary options.
Factors Influencing Employee Health and Safety
Employee Health and Safety Factors
List and explain some critical factors influencing employee health and safety, and outline practical strategies to safeguard employees in small firms, adhering to regulatory standards.
Staffing
Definition of Staffing
Staffing is a foundational human resource management function involving the systematic process of planning for, recruiting, selecting, training, and developing employees. It also encompasses compensating them fairly and providing for their health and safety to ensure a productive and engaged workforce aligned with organizational goals.
Planning for Human Resource Needs
Key Steps for Small Businesses
Determine HR Needs: This involves analyzing the organization's strategic objectives and forecasting future staffing requirements. Managers must identify not only how many employees are needed but also what specific skills, experience, and competencies these employees must possess to meet business demands and maintain operational efficiency.
Develop Recruitment Sources: Creating a robust pipeline of potential candidates requires identifying and cultivating various internal and external sources. Special emphasis should be placed on developing diverse recruitment channels to foster an inclusive workplace and comply with equal employment opportunity guidelines.
Determining Types of Employees Needed
Job Specifications
Definition: Job specifications are detailed written statements outlining the essential qualifications, skills, knowledge, and abilities (KSAs) required for a person to competently perform the duties of a specific job. They focus on the individual characteristics necessary to succeed in a role.
Components: These typically include mental capacities (e.g., problem-solving ability, analytical skills), physical requirements (e.g., lifting capacity, dexterity), and other crucial qualifications such as personality traits (e.g., teamwork, communication skills), educational background, and specific certifications.
Job Descriptions
Definition: A job description is a formal document that systematically lists the primary duties, responsibilities, and tasks associated with a given job. It defines the job itself, rather than the person doing it.
Inclusions:
Working conditions: This covers both the physical environment (e.g., office, factory floor, exposure to hazards) and the psychological/interpersonal dynamics (e.g., level of supervision, teamwork requirements, stress levels).
Relationships with other jobs: Specifies reporting lines (who the employee reports to and who reports to them) and key internal and external contacts.
To prevent misunderstandings, enhance clarity, and serve as a basis for performance evaluations, job descriptions should ideally be reviewed and signed by both the employer and employee.
Components of a Simplified Job Description and Job Specification
Identification Components: These provide essential administrative details such as the job title, the department or division where the role resides, an internal code, the designated salary range or pay grade, and the title of the immediate supervisor.
Job Description Elements:
Physical demands and minimum requirements: Specific actions or capabilities needed (e.g., ability to sit for long periods, fine motor skills).
Working conditions: A detailed breakdown of the physical and psychological environment, including potential hazards, noise levels, temperature, and interpersonal dynamics.
Summary of duties and responsibilities: A concise overview of the job's main functions and the key tasks performed.
Days and hours of work: Expected work schedule, including any rotational shifts or overtime requirements.
Machines, tools, and equipment used: A list of specialized instruments or software necessary for the job.
Job Specifications Elements:
Required educational background, skills, training, and experience: Specifies minimum academic qualifications (e.g., high school diploma, bachelor’s degree), technical skills (e.g., software proficiency), vocational training, and the amount and type of prior work experience deemed essential.
Personal characteristics: Details desirable aptitudes and traits, such as sociability, articulateness, leadership potential, problem-solving skills, and attention to detail, which contribute to job success and cultural fit.
Where to Find Needed Employees
Internal Sources: Leveraging existing employees often boosts morale and reduces recruitment costs.
Upgrading: This involves providing current workers with additional training and development to enable them to perform more complex or advanced work within the organization, often leading to a promotion or increased responsibilities.
Transferring: Moving an employee to a different job within the company, typically at the same organizational level and without significant changes in title or pay. Transfers can be used to broaden an employee's experience, fill temporary vacancies, or improve team dynamics.
Promoting: Elevating an employee to a higher position with significantly increased responsibilities, authority, and often, higher pay. Promotions serve as a powerful motivator, enhance employee morale, recognize past performance, and provide clear career paths.
External Sources for Employee Recruitment
Sources of Recruitment: When internal talent is insufficient, businesses turn to external avenues.
Former employees: Past employees who left on good terms or have retired may be excellent re-hires, bringing back valuable knowledge and experience.
Friends and relatives of current employees: Leveraging employee networks can yield trustworthy candidates, often referred through internal referral programs with finders' fees.
Unsolicited applications and resumes: Direct applications received online or in person can be a continuous source of talent.
Social and professional organizations: Industry-specific associations, online platforms (e.g., LinkedIn), and diversity organizations can connect businesses with specialized talent.
Retirees: Experienced individuals who have retired may be willing to return to work part-time or on a consulting basis, offering a wealth of knowledge.
Part-time and temporary workers: Flexible options for seasonal needs, special projects, or to assess fit before full-time hiring.
Leased Manpower: This involves contracting with an outside professional employer organization (PEO) that specializes in providing specific services or a workforce. The PEO typically handles payroll, benefits, and HR compliance, allowing the small business to access skilled labor without the administrative burden.
Methods of Recruiting Employees
Definition of Recruitment: Recruitment is the active process of identifying, attracting, and screening a sufficient number of qualified individuals to apply for open job vacancies in an organization. The goal is to create a diverse pool of candidates to choose from.
Strategies:
Asking current employees for referrals: Implementing structured employee referral programs that offer finders' fees incentivizes employees to recommend qualified candidates from their networks, often leading to better cultural fit and retention.
Searching for senior workers over 55: Actively seeking out experienced individuals due to their proven dependability, strong work ethic, and wealth of knowledge. This group often represents a stable and dedicated workforce.
Considering internships through universities: Establishing partnerships with colleges and universities to offer internships provides a pipeline for future talent, allows for 'try before you buy' evaluation, and brings fresh perspectives to the company.
Utilizing local church bulletins for recruitment: For certain community-oriented roles or to reach specific demographics, local community bulletins can be an effective, low-cost recruitment channel.
Being specific when asking about job-related talents: Crafting job postings and recruitment conversations to clearly articulate the required skills, responsibilities, and expectations helps attract candidates who are genuinely qualified and interested in the specific demands of the role.
Networking as a Recruitment Method
Definition of Networking: Networking in recruitment is the strategic process of establishing and maintaining mutually beneficial relationships with key individuals, industry influencers, and professional communities, both within and outside one's organization. This is done with the explicit purpose of identifying potential candidates, gaining insights into talent pools, and promoting career development or securing promotions for identified individuals.
Methods of Selecting the Right Person for the Job
Selection Process:
The selection process is a systematic procedure involving multiple steps designed to filter through the applicant pool and identify the candidate with the optimal qualifications, skills, and cultural fit to perform the job successfully. It aims to maximize person-job and person-organization fit.
Selection Procedure Steps:
Gathering information about the applicant: This often begins with application forms and resumes, followed by initial screenings, interviews, background checks, reference checks, and potentially pre-employment tests.
Making a job offer: Extending a formal offer of employment to the selected candidate, detailing salary, benefits, start date, and other terms of employment.
Orienting the new employee: Once the offer is accepted, a structured orientation program helps the new hire integrate into the company culture, understand their role, and become productive quickly.
General Topics to Avoid When Interviewing Applicants
Sensitive Topics: To ensure compliance with anti-discrimination laws (such as Title VII of the Civil Rights Act, ADA, and ADEA) and promote fair hiring practices, interviewers must strictly avoid questions that could be perceived as discriminatory or intrusive.
Children: Do not inquire about family planning, number of children, child care arrangements, or intentions to have children.
Age: Avoid direct questions about age or birth date, or questions that could infer age, unless age is a bona fide occupational qualification (BFOQ).
Disabilities: Do not ask about the existence, nature, or severity of physical or mental disabilities. Focus on the applicant's ability to perform essential job functions with or without reasonable accommodation.
Physical Characteristics: Avoid asking for height, weight, race, or other identifying traits that are not directly relevant to job performance.
Citizenship: Do not ask about citizenship status except as necessary to verify legal authorization to work in the U.S. (e.g., asking if they are legally authorized to work, not their country of origin).
Name: Do not ask female candidates for their maiden name; this can imply marital status discrimination.
Lawsuits: Avoid inquiries about previous lawsuits or workers' compensation claims against former employers.
Arrest Records: Do not ask about arrest records before hiring, as arrests do not prove guilt. Conviction records may be inquired about only if job-related and consistent with business necessity.
Smoking: Avoid questions about smoking habits or other lifestyle choices, as these are generally not job-related and can lead to privacy or discrimination claims.
AIDS and HIV: Absolutely do not ask about AIDS or HIV status, as this falls under disability discrimination.
Preemployment Tests and Validity
Definition of Validity: Validity in pre-employment testing refers to the extent to which a test accurately measures what it is intended to measure and genuinely predicts successful job performance. There are several types:
Content Validity: The test samples knowledge or skills directly representative of the job.
Criterion-Related Validity: The test scores correlate with actual job performance (e.g., higher test scores predict higher productivity).
Construct Validity: The test accurately measures an abstract construct (e.g., intelligence, leadership potential) that is essential for the job.
Polygraph Tests: An instrument used to record physiological variations that supposedly indicate deception. The Employee Polygraph Protection Act of 1988 largely banned the use of polygraph tests by private employers for pre-employment screening, with limited exceptions for certain security-related jobs.
Interviewing Applicants in Depth
In-depth Interviews: These are detailed, structured, or semi-structured conversations designed to go beyond surface-level information. They involve probing discussions that utilize behavioral (e.g.,
Learning Objectives
Human Resource Needs
Explain how small business managers plan human resource needs and develop sources from which to recruit employees.
Recruitment Methods
Name some methods used for recruiting human resources and describe the steps in the employee selection process.
Employee Development
Explain the importance of employee development and discuss some development methods, including specific approaches for managers.
Learning Objectives (Continued)
Selection of Managers vs. Nonmanagerial Employees
Tell how selection strategies for managers differ from those for nonmanagerial employees and describe various methods of manager development.
Laws Affecting HR Practices
Discuss the key federal laws that impact recruiting, selection, and development processes, including their enforcement agencies.
Compensation
Describe various ways to compensate employees with both direct monetary payments and indirect employee benefits, including legally required and voluntary options.
Factors Influencing Employee Health and Safety
Employee Health and Safety Factors
List and explain some critical factors influencing employee health and safety, and outline practical strategies to safeguard employees in small firms, adhering to regulatory standards.
Staffing
Definition of Staffing
Staffing is a foundational human resource management function involving the systematic process of planning for, recruiting, selecting, training, and developing employees. It also encompasses compensating them fairly and providing for their health and safety to ensure a productive and engaged workforce aligned with organizational goals.
Planning for Human Resource Needs
Key Steps for Small Businesses
Determine HR Needs: This involves analyzing the organization's strategic objectives and forecasting future staffing requirements. Managers must identify not only how many employees are needed but also what specific skills, experience, and competencies these employees must possess to meet business demands and maintain operational efficiency. This process begins with a job description and job specifications.
Develop Recruitment Sources: Creating a robust pipeline of potential candidates requires identifying and cultivating various internal and external sources. Special emphasis should be placed on developing diverse recruitment channels to foster an inclusive workplace and comply with equal employment opportunity guidelines.
Determining Types of Employees Needed
Job Specifications
Definition: Job specifications are detailed written statements outlining the essential qualifications, skills, knowledge, and abilities (KSAs) required for a person to competently perform the duties of a specific job. They focus on the individual characteristics necessary to succeed in a role.
Components: These typically include mental capacities (e.g., problem-solving ability, analytical skills), physical requirements (e.g., lifting capacity, dexterity), and other crucial qualifications such as personality traits (e.g., teamwork, communication skills), educational background, and specific certifications.
Job Descriptions
Definition: A job description is a formal document that systematically lists the primary duties, responsibilities, and tasks associated with a given job. It defines the job itself, rather than the person doing it.
Inclusions:
Working conditions: This covers both the physical environment (e.g., office, factory floor, exposure to hazards) and the psychological/interpersonal dynamics (e.g., level of supervision, teamwork requirements, stress levels).
Relationships with other jobs: Specifies reporting lines (who the employee reports to and who reports to them) and key internal and external contacts.
To prevent misunderstandings, enhance clarity, and serve as a basis for performance evaluations, job descriptions should ideally be reviewed and signed by both the employer and employee.
Components of a Simplified Job Description and Job Specification
Identification Components: These provide essential administrative details such as the job title, the department or division where the role resides, an internal code, the designated salary range or pay grade, and the title of the immediate supervisor.
Job Description Elements:
Physical demands and minimum requirements: Specific actions or capabilities needed (e.g., ability to sit for long periods, fine motor skills).
Working conditions: A detailed breakdown of the physical and psychological environment, including potential hazards, noise levels, temperature, and interpersonal dynamics.
Summary of duties and responsibilities: A concise overview of the job's main functions and the key tasks performed.
Days and hours of work: Expected work schedule, including any rotational shifts or overtime requirements.
Machines, tools, and equipment used: A list of specialized instruments or software necessary for the job.
Job Specifications Elements:
Required educational background, skills, training, and experience: Specifies minimum academic qualifications (e.g., high school diploma, bachelor’s degree), technical skills (e.g., software proficiency), vocational training, and the amount and type of prior work experience deemed essential.
Personal characteristics: Details desirable aptitudes and traits, such as sociability, articulateness, leadership potential, problem-solving skills, and attention to detail, which contribute to job success and cultural fit.
Where to Find Needed Employees
Internal Sources: Leveraging existing employees often boosts morale and reduces recruitment costs.
Upgrading: This involves providing current workers with additional training and development to enable them to perform more complex or advanced work within the organization, often leading to a promotion or increased responsibilities.
Transferring: Moving an employee to a different job within the company, typically at the same organizational level and without significant changes in title or pay. Transfers can be used to broaden an employee's experience, fill temporary vacancies, or improve team dynamics.
Promoting: Elevating an employee to a higher position with significantly increased responsibilities, authority, and often, higher pay. Promotions serve as a powerful motivator, enhance employee morale, recognize past performance, and provide clear career paths.
External Sources for Employee Recruitment
Sources of Recruitment: When internal talent is insufficient, businesses turn to external avenues.
Former employees: Past employees who left on good terms or have retired may be excellent re-hires, bringing back valuable knowledge and experience.
Friends and relatives of current employees: Leveraging employee networks can yield trustworthy candidates, often referred through internal referral programs with finders' fees.
Unsolicited applications and resumes: Direct applications received online or in person can be a continuous source of talent.
Social and professional organizations: Industry-specific associations, online platforms (e.g., LinkedIn), and diversity organizations can connect businesses with specialized talent.
Retirees: Experienced individuals who have retired may be willing to return to work part-time or on a consulting basis, offering a wealth of knowledge.
Part-time and temporary workers: Flexible options for seasonal needs, special projects, or to assess fit before full-time hiring.
Leased Manpower: This involves contracting with an outside professional employer organization (PEO) that specializes in providing specific services or a workforce. The PEO typically handles payroll, benefits, and HR compliance, allowing the small business to access skilled labor without the administrative burden.
Competing firms: Recruiting skilled individuals from other companies in the same industry.
Schools and colleges: Utilizing career services, job fairs, and internships to tap into new talent pools.
Workers with disabilities: Actively recruiting individuals with disabilities to diversify the workforce and comply with ADA regulations.
Methods of Recruiting Employees
Definition of Recruitment: Recruitment is the active process of identifying, attracting, and screening a sufficient number of qualified individuals to apply for open job vacancies in an organization. The goal is to create a diverse pool of candidates to choose from.
Strategies:
Asking current employees for referrals: Implementing structured employee referral programs that offer finders' fees incentivizes employees to recommend qualified candidates from their networks, often leading to better cultural fit and retention.
Searching for senior workers over 55: Actively seeking out experienced individuals due to their proven dependability, strong work ethic, and wealth of knowledge. This group often represents a stable and dedicated workforce.
Considering internships through universities: Establishing partnerships with colleges and universities to offer internships provides a pipeline for future talent, allows for 'try before you buy' evaluation, and brings fresh perspectives to the company.
Utilizing local church bulletins for recruitment: For certain community-oriented roles or to reach specific demographics, local community bulletins can be an effective, low-cost recruitment channel.
Being specific when asking about job-related talents: Crafting job postings and recruitment conversations to clearly articulate the required skills, responsibilities, and expectations helps attract candidates who are genuinely qualified and interested in the specific demands of the role.
Advertising: Placing job advertisements in newspapers, online job boards, and industry-specific publications.
Employment agencies: Using private or public employment agencies to help source suitable candidates.
Temporary help services: Hiring temporary staff from agencies to fill short-term needs or evaluate potential long-term hires.
Internet recruitment: Utilizing online platforms, social media, and company websites for broader reach.
Scouting: Proactively seeking out talent in specific locations or events, often for specialized roles.
Networking as a Recruitment Method
Definition of Networking: Networking in recruitment is the strategic process of establishing and maintaining mutually beneficial relationships with key individuals, industry influencers, and professional communities, both within and outside one's organization. This is done with the explicit purpose of identifying potential candidates, gaining insights into talent pools, and promoting career development or securing promotions for identified individuals.
Methods of Selecting the Right Person for the Job
Selection Process:
The selection process is a systematic procedure involving multiple steps designed to filter through the applicant pool and identify the candidate with the optimal qualifications, skills, and cultural fit to perform the job successfully. It aims to maximize person-job and person-organization fit.
Selection Procedure Steps:
Gathering information about the applicant: This often proceeds through several stages:
(a) Preliminary screening: An initial interview or review of the application and resume to quickly eliminate unqualified candidates.
(b) Biographical information review: Detailed examination of information from applications, resumes, school records, military service records, and other documentation.
(c) Testing: Administering various pre-employment tests to assess skills, aptitude, personality, or other job-relevant attributes.
(d) Verifying references: Contacting previous employers, supervisors, or other professional contacts to confirm information and gather insights into the applicant's work history and character.
Making a job offer: Extending a formal offer of employment to the selected candidate, detailing salary, benefits, start date, and other terms of employment.
Physical examination: Conducted after a preliminary job offer, ensuring the candidate meets the physical requirements of the job, where applicable.
Orienting the new employee: Once the offer is accepted, a structured orientation program helps the new hire integrate into the company culture, understand their role, and become productive quickly.
General Topics to Avoid When Interviewing Applicants
Sensitive Topics: To ensure compliance with anti-discrimination laws (such as Title VII of the Civil Rights Act, ADA, and ADEA) and promote fair hiring practices, interviewers must strictly avoid questions that could be perceived as discriminatory or intrusive.
Children: Do not inquire about family planning, number of children, child care arrangements, or intentions to have children.
Age: Avoid direct questions about age or birth date, or questions that could infer age, unless age is a bona fide occupational qualification (BFOQ).
Disabilities: Do not ask about the existence, nature, or severity of physical or mental disabilities. Focus on the applicant's ability to perform essential job functions with or without reasonable accommodation.
Physical Characteristics: Avoid asking for height, weight, race, or other identifying traits that are not directly relevant to job performance.
Citizenship: Do not ask about citizenship status except as necessary to verify legal authorization to work in the U.S. (e.g., asking if they are legally authorized to work, not their country of origin).
Name: Do not ask female candidates for their maiden name; this can imply marital status discrimination.
Lawsuits: Avoid inquiries about previous lawsuits or workers' compensation claims against former employers.
Arrest Records: Do not ask about arrest records before hiring, as arrests do not prove guilt. Conviction records may be inquired about only if job-related and consistent with business necessity.
Smoking: Avoid questions about smoking habits or other lifestyle choices, as these are generally not job-related and can lead to privacy or discrimination claims.
AIDS and HIV: Absolutely do not ask about AIDS or HIV status, as this falls under disability discrimination.
Preemployment Tests and Validity
Definition of Validity: Validity in pre-employment testing refers to the extent to which a test accurately measures what it is intended to measure and genuinely predicts successful job performance. There are several types:
Content Validity: The test samples knowledge or skills directly representative of the job.
Criterion-Related Validity: The test scores correlate with actual job performance (e.g., higher test scores predict higher productivity).
Construct Validity: The test accurately measures an abstract construct (e.g., intelligence, leadership potential) that is essential for the job.
Polygraph Tests: An instrument used to record physiological variations that supposedly indicate deception. The Employee Polygraph Protection Act of 1988 largely banned the use of polygraph tests by private employers for pre-employment screening, with limited exceptions for certain security-related jobs.
Interviewing Applicants in Depth
In-depth Interviews: These are detailed, structured, or semi-structured conversations designed to go beyond surface-level information. They involve probing discussions that utilize behavioral (e.g., “Tell me about a time when…”) and situational questions to assess an applicant's character, personality, problem-solving skills, and past behaviors as indicators of future performance. This method allows interviewers to gain a comprehensive understanding of a candidate's fit for both the specific job and the organizational culture.
Improving the Interview Process
Key Improvement Strategies:
Avoid obvious and legally indefensible questions.
Ask the right questions and evaluate answers accurately.
Refrain from placing too much focus on self-evaluation or first impressions.
Recognize important clues and avoid over-relying on past credentials.
Training and Developing Employees
Benefits of Training:
Increased productivity, reduced turnover, improved employee satisfaction, and decreased material costs.
Methods of Training Nonmanagerial Employees
Training Methods:
On-the-job training (OJT): Workers perform the job under supervision, learning through practice. Also known as On-the-Job Learning (OJL).
Apprenticeship Training: Combines OJT with theoretical classroom learning.
Internship Training: Blends OJT with academic instruction.
Cross-training: Enables workers to learn multiple skills for versatility.
E-training: Involves computer interaction for training.
Methods Used to Develop Managers
Managerial Selection and Development: When selecting managers, the focus shifts to identifying managerial qualities, which are not the same as an individual's nonmanagerial competencies.
Recruitment Methods: Similar to nonmanagerial recruitment but focused on management characteristics and development opportunities.
Development Techniques:
Coaching: One-on-one guidance and feedback from an experienced manager.
Planned progression: A structured career path designed to develop management skills through a series of increasingly responsible positions.
Job rotation: Moving managers through different departments or roles to broaden their understanding of the organization.
Laws Providing for Equal Employment Opportunity
Americans with Disabilities Act (ADA): Requires removal of barriers to employment for disabled individuals, covering a range of disabilities.
Enforcing EEO Laws
Equal Employment Opportunity Commission (EEOC): Federal agency enforcing EEO laws.
Affirmative Action Programs (AAPs): Guidelines to eliminate discrimination against women and minorities.
Office of Federal Contract Compliance Programs (OFCCP): Enforces EEO laws and guidelines for federal contractors.
Principal EEOC Regulations
Key Topics Covered: These regulations prohibit discrimination on the basis of race, creed, color, sex, age, religion, disabilities, or national origin.
Sex and religious discrimination guidelines, age discrimination interpretations, employee selection guidelines, accountability measures.
Issues related to age, sex, and language discrimination are particularly challenging for small firms.
Using Money to Motivate Employees
Compensation Strategies:
Merit Increases: Based on performance.
Incentive Wages: Extra compensation for production over a specified amount.
Commission: Compensation linked to sales or profits.
Bonuses: Non-specified rewards for special efforts.
Profit Sharing: Employees receive a share of company profits.
Employee Stock Ownership Plans (ESOP): Employees earn shares through company performance and longevity.
Push Money (PM) or Spiff: Incentive given to salespersons to push a particular product.
Providing Employee Benefits
Definition of Employee Benefits: Rewards and services beyond regular earnings. Also known as fringe benefits.
Popular Benefits:
Legally Required: Social Security, workers' compensation, unemployment insurance, family and medical leave.
Voluntary: Health insurance, dental care, retirement plans, and various other services.
Legally Required Benefits
Health Insurance: Required under the Affordable Care Act of 2010.
Social Security: Federal program for retiree support, including Medicare contributions.
Unemployment Insurance: Financial aid for laid off workers.
Legally Required Benefits (Continued)
Workers' Compensation: Payments for on-the-job injuries.
Family and Medical Leave Act: Unpaid leave rights for family and medical situations.
Some Other Popular Benefits
Benefit Plans:
Defined-contribution plans: Employer contributions to funds where the final benefit depends on investment performance.
Defined-benefit plans: Set retirement amounts based on a formula, typically involving salary and years of service.
401(k) plans: Deferred earnings for tax savings, allowing employees to contribute a portion of their salary to a retirement account.
Cafeteria-style plans: Employees select benefits according to their preferences, often referred to as flexcomp plans.
Factors Influencing Workers’ Health and Safety
Influencing Factors:
Type of industry, type of occupation, human variables.
Repetitive Stress Injuries (RSIs): Cumulative trauma disorders leading to muscular/skeletal issues, such as carpal tunnel syndrome. These are becoming a serious health problem for small firms. Also referred to as Cumulative Trauma Disorders (CTDs).
Workplace Emergency: An unforeseen situation that threatens employees, customers, or the public, or disrupts operations.
Prevention of Injury
Injury Prevention Measures:
Training on proper lifting, ergonomic equipment, and safety practices.
Safety Equipment: Provide necessary tools, adjust workspaces to be ergonomic, and mitigate hazards.
The Role of the Occupational Safety and Health Act
Occupational Safety and Health Administration (OSHA): Establishes safety standards and provides resources for injury prevention, enforcing compliance to prevent unsafe or unhealthy business environments.
While environmental protection is undoubtedly beneficial for everyone, the costs of required equipment and/or procedures can be a hardship for small businesses.
Appendices
Supplementary Information: Diagrams, additional resources, and methods regarding recruitment and employee training strategies.