Section 15.1 Hiring Decisions

Section 15.2 Training & Motivating Employees

OBJECTIVES

Understand factors to consider when hiring employees

Compare types of organizational structures Describe the process of recruiting employees Identify professionals whose services

entrepreneurs might use

2Section 15.1: Hiring Decisions

In the course of weighing the decision to hire employees,

you will need to answer these basic questions: Can you afford employees? Are you ready to be a boss? Can you share control? Are you willing to delegate authority or responsibility

to someone else? Do you have the people skills required to manage

employees? Do you know how to act with authority?

3Section 15.1: Hiring Decisions

The simplest structure is a line organization, a direct chain of command through levels of personnel who are directly involved in a business’s main occupation.

An expanded version of a line organization is the line-and-staff organization, where staff members advise, assist, or support the work of line personnel.

At certain times, a business may use a project organization, in which employees from more than one department work as a team on a specific goal. Project organization ends once the project goal is reached.

4Section 15.1: Hiring Decisions

A job description is an explanation of a position’s purpose, tasks, and responsibilities and the qualifications needed to perform it.

Compensation refers to the money and benefits an employee receives in exchange for working. Work that requires a set number of hours or items produced is

generally paid as a wage. A salary is common for jobs where the hours and schedules

vary. Benefits are types of compensation other than salary

or wages.

5Section 15.1: Hiring Decisions

6Section 15.1: Hiring Decisions

When important services are needed only occasionally, a growing business may require additional help. In these situations, bringing in professionals, consultants, or skilled workers as needed is more cost effective than retaining their services full time.

Choosing an outside expert requires the same type of research as hiring a regular employee.

Ask candidates for references from other clients.

For professionals whose services will be used on an ongoing basis, look for someone with whom you can establish a long-term relationship.

7Section 15.1: Hiring Decisions

OBJECTIVES

Compare various methods of employee training and development

Explain various techniques for motivating employees

Describe the processes involved in evaluating, promoting, and dismissing employees

8Section 15.2: Training & Motivating Employees

Qualified candidates may have the necessary skills but need to learn how to apply them to a specific job.

Training builds enthusiasm and eases the employee's concerns of starting a job or assuming new duties.

Companies focus on specific training and development needs and then figures out the best way to fill them.

Training for a new employee starts with orientation. Orientation is the process of gradually integrating an employee into a workplace.

Job shadowing is a process of learning a job by watching an employee perform the job over a period of time.

9Section 15.2: Training & Motivating Employees

Mentors should be:

Interested in a Mentoring Relationship Enthusiastic about Their Careers Positive and Constructive Communicators Respected Role Models Trusted by Their Protégés

10Section 15.2: Training & Motivating Employees

Performance-based rewards are linked to a specific, achievable goal and are related to the work involved.

Flexible work schedules, or flextime, provide employees with a choice of when to work.

One trait entrepreneurs can appreciate in employees is the desire to take on more responsibilities. Job enlargement means adding responsibilities to a position. Job enrichment means increasing the depth or involvement of a

job. People are motivated by a positive atmosphere that meets

their need for enjoyment and value recognition.

11Section 15.2: Training & Motivating Employees

Performance evaluations have two goals: To point out how well the employee is meeting the job

requirements and expectations. To improve not only the employee’s performance, but also the

employer’s. Promoting an existing employee shows recognition and

respect for the people whose work and commitment helped build the company.

Dismissing an unproductive or troublesome employee may be the entrepreneur’s most difficult responsibility, however it may be necessary for the business’s survival.

12Section 15.2: Training & Motivating Employees