How to Obtain and Manage

Human Resources and

Diversity in Small Companies
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Planning for Human Resource Needs

 You cannot wait until you need a new employee to think about
your human resource needs. Like larger competitors, small
businesses must

(1) determine which human resources are needed

(2) develop sources from which to recruit future employees,

especially people from diverse ethnic groups.
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Determining Types of Employees Needed

Job specifications are detailed written statements of work assignments and the qualifications
needed to do the job acceptably.

A Job description lists the duties and responsibilities of a given job.

Methods of Recruiting Employees
is reaching out to attract applicants from which to
choose one to fill a job vacancy.
is the process of establishing and
maintaining contacts with key persons
in one’s own or another organization
as informal development or promotion
systems.
Selecting the Right Person for the Job
Selection involves choosing the applicant who
has the qualifications to perform the job.
 Validity
You must be very careful when you perform any
preemployment or employee testing, to make
sure that the procedures and instruments used
are valid.
 Gathering Information
about the Applicant Many people applying for a
job will not be qualified, so try to find out all you
can about what they can—and cannot—do.
 Making a Job Offer
When you have decided to hire an
applicant, you should make him or her a
firm job offer.
 Orienting the New Employee
Selection also should include orienting new employees to the
job. Starting a new job is usually a difficult and frustrating
experience, even for the best-qualified people.
 Training and Developing Employees
The effectiveness of a small business results not only from the ability of the
owner but also from
(1) the inherent abilities of its employees;
(2) their development through training, education, and experience;
(3) their motivation
 Compensating Employees
Another aspect of managing human resources and
diversity is providing what employees consider fair pay for
their activities
 Using Money to Motivate
Many small businesses use some form of financial incentive
to motivate their employees to use their initiative and to
perform better.
 Employee benefits
are the rewards and services provided to workers in addition to their regular earnings.
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How to Maintain Relationships with Your

Employees and Their Representatives
HUMAN RELATIONS

INVOLVES THE INTERACTION AMONG PEOPLE IN AN ORGANIZATION

 GOOD HUMAN RELATIONS
• OCCURS WHEN BOTH THE EMPLOYEES AND THE SMALL BUSINESS OWNER DEVELOP A FORM OF SOCIAL CONTRACT,
WHICH OUTLINES THEIR RIGHTS AND DUTIES TO EACH OTHER.

• THERE ARE FIVE TOPICS TO ADDRESS WITH EMPLOYEES

• ∙∙ REASONS FOR BEING IN BUSINESS.
• ∙∙ GROWTH GOALS.
• ∙∙ PRODUCT GOALS.
• ∙∙ PEOPLE INVOLVEMENT.
• ∙∙ ETHICS STATEMENT.
 LEADING

IS THE MANAGEMENT FUNCTION OF GETTING EMPLOYEES TO

DO WHAT YOU WANT THEM TO DO, BY COMMUNICATING
WITH, MOTIVATING, AND DISCIPLINING THEM.
 LEADERSHIP

IS THE ABILITY OF ONE PERSON TO INFLUENCE

OTHERS TO ATTAIN OBJECTIVES
Communicating with Employees and Others
Why Motivate
Employees?
 Attracting Potential Employees

If you want to encourage potential employees to work for you, you

must find and use incentives that appeal to a person needing a job.
 Improving Performance

You can also use motivation to improve performance and

efficiency on the part of present employees. You can do this by
praising good work, giving employees more responsibility,
publicly recognizing a job well done, and awarding merit salary
increases.
Retaining Good Employees

Motivation can also be used to retain your present employees. This

is accomplished primarily through the use of employee benefits,
most of which are designed to reward employees who stay with the
company
Thank You ,,,