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Staffing & Leading Staffing & Leading 1 Copyright 1999 Prentice Hall Publishing Company Copyright 1999 Prentice Hall Publishing Company Staffing and Leading a Growing Company

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Page 1: Staffing & Leading 1 Copyright 1999 Prentice Hall Publishing Company Staffing and Leading a Growing Company

Staffing & LeadingStaffing & Leading 11Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company

Staffing and Leading a Growing Company

Staffing and Leading a Growing Company

Page 2: Staffing & Leading 1 Copyright 1999 Prentice Hall Publishing Company Staffing and Leading a Growing Company

Staffing & LeadingStaffing & Leading 22Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company

Leadership . . .Leadership . . .

Is the process of infuencing and inspiring Is the process of infuencing and inspiring others to work to achieve a common goal others to work to achieve a common goal and then giving them the power and the and then giving them the power and the freedom to achieve it.freedom to achieve it.

Is not the same as management; the two Is not the same as management; the two require different skills and abilities. require different skills and abilities.

Page 3: Staffing & Leading 1 Copyright 1999 Prentice Hall Publishing Company Staffing and Leading a Growing Company

Staffing & LeadingStaffing & Leading 33Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company

Effective LeadersEffective Leaders Create a set of values and beliefs for Create a set of values and beliefs for

employees and passionately pursue them.employees and passionately pursue them. Respect and support their employees.Respect and support their employees. Set the example for their employees.Set the example for their employees. Focus employees’ efforts on challenging goals Focus employees’ efforts on challenging goals

and keep them driving toward those goals.and keep them driving toward those goals. Provide the resources employees need to Provide the resources employees need to

achieve their goals.achieve their goals.

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Staffing & LeadingStaffing & Leading 44Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company

Effective LeadersEffective Leaders

Communicate with their employees.Communicate with their employees. Value the diversity of their workers.Value the diversity of their workers. Celebrate their workers’ successes.Celebrate their workers’ successes. Encourage creativity among their Encourage creativity among their

workers.workers. Maintain a sense of humor. Maintain a sense of humor. Keep their eyes on the horizon.Keep their eyes on the horizon.

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Staffing & LeadingStaffing & Leading 55Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company

Small Business Leaders Must . . .Small Business Leaders Must . . .

Communicate the vision and the values of the Communicate the vision and the values of the company and create an environment of trust company and create an environment of trust among workers.among workers.

Hire the right employees and constantly improve Hire the right employees and constantly improve their skills.their skills.

Build an organizational culture and structure that Build an organizational culture and structure that allow both workers and the company to reach allow both workers and the company to reach their potential.their potential.

Motivate workers to higher levels of performance.Motivate workers to higher levels of performance.

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Staffing & LeadingStaffing & Leading 66Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company

CommunicationCommunication

Managers spend about 80 percent of their Managers spend about 80 percent of their time in some form of communication: time in some form of communication: 30% talking30% talking 25% listening25% listening 15% reading15% reading 10% writing10% writing

Many problems in the workplace arise Many problems in the workplace arise because of poor communication.because of poor communication.

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Staffing & LeadingStaffing & Leading 77Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company

Communicating EffectivelyCommunicating Effectively

Clarify your message before Clarify your message before communicating it.communicating it.

Use face-to-face communication Use face-to-face communication whenever possible.whenever possible.

Be empathetic.Be empathetic. Match your message to your audience.Match your message to your audience. Be organized.Be organized.

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Communicating EffectivelyCommunicating Effectively

Encourage feedback.Encourage feedback. Tell the truth.Tell the truth. Don’t be afraid to tell employees about Don’t be afraid to tell employees about

the business, its performance, and the the business, its performance, and the forces that affect it. forces that affect it.

Be a good listener. Be a good listener.

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Hiring the Right EmployeesHiring the Right Employees

Because they determine a company’s Because they determine a company’s future, “new hires” are extremely future, “new hires” are extremely important, especially to small companies, important, especially to small companies, where the impact of hiring decisions is where the impact of hiring decisions is magnified.magnified.

““Bad hires” are expensive!Bad hires” are expensive! The key is to avoid making hiring The key is to avoid making hiring

mistakes at the outset.mistakes at the outset.

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Staffing & LeadingStaffing & Leading 1010Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company

Conducting a Job AnalysisConducting a Job Analysis Create a Create a job description job description - a written statement - a written statement

of the duties, responsibilities, reporting of the duties, responsibilities, reporting relationships, working conditions, and relationships, working conditions, and materials and equipment used in a job.materials and equipment used in a job.

Create aCreate a job specification job specification - written - written statement of the qualifications and statement of the qualifications and characteristics needed for a job, stated in characteristics needed for a job, stated in such terms as education, skills, and such terms as education, skills, and experience.experience.

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Planning an Effective InterviewPlanning an Effective Interview

Develop a series of core questions and Develop a series of core questions and ask them of every job candidate.ask them of every job candidate.

Ask open-ended questions rather than Ask open-ended questions rather than those calling for “yes or no” answers.those calling for “yes or no” answers.

Create hypothetical situations candidates Create hypothetical situations candidates would encounter on the job and ask how would encounter on the job and ask how they would handle them.they would handle them.

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Planning an Effective InterviewPlanning an Effective Interview Probe for specific examples in the candidate’s Probe for specific examples in the candidate’s

work history that demonstrate the necessary work history that demonstrate the necessary traits and characteristics.traits and characteristics.

Ask candidates to describe a recent success and Ask candidates to describe a recent success and a recent failure and how they dealt with them.a recent failure and how they dealt with them.

Arrange a “non-interview” setting that allows Arrange a “non-interview” setting that allows several employees to observe candidates in an several employees to observe candidates in an informal atmosphere.informal atmosphere.

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Conducting an Effective Conducting an Effective InterviewInterview

Breaking the ice. Breaking the ice. Interviewer’s goals is to Interviewer’s goals is to diffuse the tension that exists because of both diffuse the tension that exists because of both parties’ nervousness.parties’ nervousness.

Asking questions. Asking questions. Skilled interviewers spend Skilled interviewers spend about 25% of the interview talking and the about 25% of the interview talking and the other 75% listening.other 75% listening.

Selling the candidate on the company. Selling the candidate on the company. The best The best candidates will have other job offers, and the candidates will have other job offers, and the interviewer must convince the best candidates interviewer must convince the best candidates that the company is a great place to work.that the company is a great place to work.

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Checking ReferencesChecking References

Checking an applicant’s references is an Checking an applicant’s references is an important part of protecting a company against important part of protecting a company against making a “bad hire.”making a “bad hire.”

Is it really necessary?Is it really necessary?

Yes !! According to the American Association Yes !! According to the American Association for Personnel Administration, about 25% of all for Personnel Administration, about 25% of all résumés contain at least one major fabrication!résumés contain at least one major fabrication!

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Conducting Employment Conducting Employment TestsTests

Careful!! Tests must be valid and Careful!! Tests must be valid and reliable.reliable.

Valid test - measures what it is intended Valid test - measures what it is intended to measure (e.g. aptitude for selling or to measure (e.g. aptitude for selling or creativity).creativity).

Reliable test - measures consistently over Reliable test - measures consistently over time; stable.time; stable.

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Building the Right Culture Building the Right Culture and Structureand Structure

Company culture - the distinctive, Company culture - the distinctive, unwritten code of conduct that governs unwritten code of conduct that governs the behavior, attitudes, relationships, and the behavior, attitudes, relationships, and style of an organization.style of an organization.

Culture manifests itself in many ways, Culture manifests itself in many ways, from the way workers dress to the from the way workers dress to the language they use. language they use.

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A “Cool” Company CultureA “Cool” Company Culture

Many workers today, especially younger Many workers today, especially younger ones, want to work in “cool” companies.ones, want to work in “cool” companies.

What traits make a company “cool”?What traits make a company “cool”? Respect for work and life balanceRespect for work and life balance DiversityDiversity IntegrityIntegrity Participative managementParticipative management Learning environmentLearning environment

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StructureStructure

CraftsmanCraftsman ClassicClassic CoordinatorCoordinator Entrepreneur-plus-employee teamEntrepreneur-plus-employee team Small partnershipSmall partnership Big-team ventureBig-team venture

Six Styles Entrepreneurs Use:Six Styles Entrepreneurs Use:

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What Makes Teams Succeed?What Makes Teams Succeed? Make sure that teams are appropriate for the Make sure that teams are appropriate for the

company and the nature of its work.company and the nature of its work. Form teams around the natural work flow and Form teams around the natural work flow and

give them specific tasks to accomplish.give them specific tasks to accomplish. Provide adequate support and training for Provide adequate support and training for

team members and leaders.team members and leaders. Involve team members in how their Involve team members in how their

performances will be measured, what will be performances will be measured, what will be measured, and when it will be measured.measured, and when it will be measured.

Make at least part of team members’ pay Make at least part of team members’ pay dependent on team performance.dependent on team performance.

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Staffing & LeadingStaffing & Leading 2020Copyright 1999 Prentice Hall Publishing CompanyCopyright 1999 Prentice Hall Publishing Company

The Challenge of The Challenge of Motivating WorkersMotivating Workers

EmpowermentEmpowerment Job designJob design Rewards and CompensationRewards and Compensation FeedbackFeedback

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Empowerment . . .Empowerment . . .

Involves giving workers at every level of the Involves giving workers at every level of the organization the power, the freedom, and the organization the power, the freedom, and the responsibility to control their own work, to responsibility to control their own work, to make decisions, and to take action to meet the make decisions, and to take action to meet the company’s objectives.company’s objectives.

Requires a different style of management from Requires a different style of management from that of the traditional manager.that of the traditional manager.

Is built on sharing information, authority, and Is built on sharing information, authority, and power.power.

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Empowerment Works Best Empowerment Works Best When a Business Owner . . .When a Business Owner . . . is confident enough to give workers all of the is confident enough to give workers all of the

authority and responsibility they can handle.authority and responsibility they can handle. plays the role of coach and facilitator, not the plays the role of coach and facilitator, not the

role of meddlesome boss.role of meddlesome boss. recognizes that empowered employees will recognizes that empowered employees will

make mistakes.make mistakes. hires people who can blossom in an empowered hires people who can blossom in an empowered

environment.environment.

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Empowerment Works Best Empowerment Works Best When a Business Owner . . .When a Business Owner . . . trains workers to continuously upgrade their trains workers to continuously upgrade their

skills.skills. trusts workers to do their jobs.trusts workers to do their jobs. listens to workers when they have ideas, listens to workers when they have ideas,

solutions, or suggestions.solutions, or suggestions. recognizes workers’ contributions.recognizes workers’ contributions. shares information with workers, perhaps shares information with workers, perhaps

using open-book management.using open-book management.

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Job Design StrategiesJob Design Strategies

Job simplification - breaks work down Job simplification - breaks work down into its simplest form and standardizes into its simplest form and standardizes each task.each task.

Job enlargement (horizontal job loading) Job enlargement (horizontal job loading) - adds more tasks to a job to broaden its - adds more tasks to a job to broaden its scope.scope.

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Job Design StrategiesJob Design Strategies Job rotation - cross-trains workers so they can Job rotation - cross-trains workers so they can

move from one job in a company to others, move from one job in a company to others, giving them a greater number and variety of giving them a greater number and variety of tasks to perform. Often used with a skill-based tasks to perform. Often used with a skill-based pay system.pay system.

Job enrichment (vertical job loading) - builds Job enrichment (vertical job loading) - builds motivators into a job by increasing the planning, motivators into a job by increasing the planning, decision making, organizing and controlling decision making, organizing and controlling functions (which traditionally were managerial functions (which traditionally were managerial tasks).tasks).

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Five Core Characteristics of Five Core Characteristics of an Enriched Joban Enriched Job

Skill varietySkill variety Task identityTask identity Task significanceTask significance AutonomyAutonomy FeedbackFeedback Enriched

Job

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Job Design StrategiesJob Design Strategies Flextime - an arrangement under which Flextime - an arrangement under which

employees build their work schedules around employees build their work schedules around a set of “core hours” - such as 11 a.m.. to 2 a set of “core hours” - such as 11 a.m.. to 2 p.m. - but have flexibility about when they p.m. - but have flexibility about when they start and stop work.start and stop work.

Job sharing - a work arrangement in which Job sharing - a work arrangement in which two or more people share a single full-time two or more people share a single full-time job.job.

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Job Design StrategiesJob Design Strategies Flexplace - a work arrangement in which Flexplace - a work arrangement in which

employees work at a place other than the employees work at a place other than the traditional office, such as a satellite branch traditional office, such as a satellite branch closer to their homes or, in some cases, at closer to their homes or, in some cases, at home.home.

Telecommuting - an arrangement in which Telecommuting - an arrangement in which employees have employees working from employees have employees working from their homes use modern communications their homes use modern communications equipment to hook up to their workplaces.equipment to hook up to their workplaces.

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Rewards and CompensationRewards and Compensation

The key to using rewards to motivate The key to using rewards to motivate people is to tailor them to the things that people is to tailor them to the things that are really important to workers.are really important to workers.

Cash is an effective motivator - up to a Cash is an effective motivator - up to a point.point.

Pay-for-performance systems, where Pay-for-performance systems, where employees’ pay depends on how well they employees’ pay depends on how well they do their jobs, have become popular. do their jobs, have become popular.

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Money: Money: NotNot the Only the Only MotivatorMotivator

Money is a short-term motivator.Money is a short-term motivator. Non-financial rewards can be more Non-financial rewards can be more

important sources of employee important sources of employee motivation than money.motivation than money. PraisePraise RecognitionRecognition RespectRespect PromotionsPromotions

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The Feedback Loop.The Feedback Loop.

ComparingComparing Actual Actual Performance Performance AgainstAgainst StandardsStandards

DecidingDecidingWhat to What to MeasureMeasure

DecidingDecidingHow to How to MeasureMeasure

TakingTaking ActionActionto Improveto ImprovePerformance Performance

ComparingComparing ActualActualPerformancePerformance AgainstAgainst StandardsStandards

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Three Goals of Performance Three Goals of Performance AppraisalsAppraisals

To give employees feedback about how To give employees feedback about how they are doing their jobs.they are doing their jobs.

To provide a manager and an employee To provide a manager and an employee the opportunity to create a plan for the opportunity to create a plan for developing the skills and abilities and for developing the skills and abilities and for improving his performance.improving his performance.

To establish a basis for determining To establish a basis for determining promotions and salary increases. promotions and salary increases.

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Making Performance Making Performance Appraisals WorkAppraisals Work

Link the employee’s performance to the job Link the employee’s performance to the job description.description.

Establish meaningful, job-related, Establish meaningful, job-related, observable, measurable, and fair observable, measurable, and fair performance criteria.performance criteria.

Prepare for the appraisal by outlining the Prepare for the appraisal by outlining the key points you want to cover with the key points you want to cover with the employee.employee.

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Invite the employee to provide an Invite the employee to provide an evaluation of his own job evaluation of his own job performance based on the criteria.performance based on the criteria.

Be specific.Be specific. Keep a record of employees’ Keep a record of employees’

critical incidents - both positive critical incidents - both positive and negative.and negative.

Making Performance Making Performance Appraisals WorkAppraisals Work

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Guidelines for Successful Guidelines for Successful Performance AppraisalsPerformance Appraisals

Discuss the employee’s strengths and Discuss the employee’s strengths and weaknesses.weaknesses.

Incorporate employees’ goals into the Incorporate employees’ goals into the appraisal.appraisal.

Keep the evaluation constructive.Keep the evaluation constructive. Focus on behaviors, actions, and Focus on behaviors, actions, and

results.results.

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Guidelines for Successful Guidelines for Successful Performance AppraisalsPerformance Appraisals

No surprises (for either the employee or the No surprises (for either the employee or the business owner). business owner).

Plan for the future. Smart business owners Plan for the future. Smart business owners spend about 20% of a performance spend about 20% of a performance appraisal discussing past performance and appraisal discussing past performance and 80% developing goals, objectives, and a 80% developing goals, objectives, and a plan for improving performance in the plan for improving performance in the future.future.