Group 3 Presentation - Managing Human Resources in Small Enterpreneurial Firms

MANAGING HUMAN RESOURCES
IN SMALL & ENTERPRENEURIAL FIRMS
Dua Rauf (20191 – 25561)
Haleema Sadia (20191 – 25311) Hiba Rashid (20202 – 26898)
Zainab Nadeem (20191 – 25365) Irfan Mir (20191 – 25553)

THE SMALL BUSINESS CHALLENGE
Why Small Business Is Important?
Opportunities for
Foster local economies
entrepreneurs
Create meaningful jobs

How Small Business HRM Is Different?
• Usually the owner and (sometimes) his or her assistant

SIZE that does all the HR paperwork and tasks
• Expend more time and resources on non-HR issues

PRIORITIES
• Training tended to be informal, with an emphasis on

INFORMALITY methods like coworker and supervisory on-the-job
training
• People who create businesses under

THE • risky conditions, and starting new businesses from scratch
ENTREPRENEUR is always risky
Implications For Small Businesses
• Rudimentary human resource practices may put small business owners at a competitive
disadvantage.
• Lack of specialized HR expertise.
• Legal implications.
• Non-compliance with compensation regulations and laws.
• Paperwork duplication leads to data entry errors.

Why HRM Is Important to Small Businesses?
Retaining
employees
Building
customers
Long term
growth
USING INTERNET & GOVERNMENT TOOLS TO
SUPPORT THE HR EFFORT
Complying with Employment Laws
Small business owners will find the legal answers they need online at federal agencies Web
sites like the following:
DOL EEOC OSHA

(www.dol.gov/whd/flsa/index.htm) (www.eeoc.gov/employers) (www.OSHA.gov/)
The site Department of Labor provides The site U.S. Equal Employment The DOLs Occupational Safety and
information on the Fair Labor Standards Opportunity Commission for small BS Health Administration site similarly
Act (FLSA) designed for small businesses which supplies small business guidance like
may not have a human resources practical information, including industry-
department or a specialized EEO staff. specific safety and accident checklists.

Employment Planning & Recruiting
 Internet resources useful for small business owners at writing job descriptions and
building applicant pools.
 Similarly, small business owners can use the online recruiting tools to post positions
on Internet job portals.
Employment Selection
 Easy to use sites like: WONDERLIC PERSONNEL TEST, which measures general
mental ability.
 THE PREDICTIVE INDEX measures work-related personality traits & behaviors in

particular dominance, extroversion, patience, and blame avoidance.
Employment Training
 Internet training can provide, at a relatively low cost, employee training that used to
be beyond most small employers’ reach.
 PRIVATE VENDORS: The small business owner can access suppliers of prepackaged
training solutions. These range from self-study programs to specialized programs.
 THE SBA: The federal government’s Small Business Administration (

www.SBA.gov/training/) provides a virtual campus that offers online courses &
learning tools to support entrepreneurs.
 NAM: The National Association of Manufacturers (NAM)’s Virtual University (

www.namvu.com) helps employees continue their professional development.
Employment Appraisal & Compensation
• Small employers have easy access to computerized and online appraisal and compensation
services.
• Managers can facilitate the performance management process through:
1. Oracle Corporations e-Performance by enabling
(http://www.oracle.com/us/products/applications/peoplesoft-enterprise/hcm-resource-library/051027.pdf)
2. The e-Appraisal system from Halogen Software
(http://www.halogensoftware.com/products/halogen-eappraisal/)
• Sites like onetonline.org facilitate the job analysis process and www.salary.com makes it
easy to determine local pay rates.
Employment Health & Safety
 Safety is an important issue for small employers. OHSA provides several free services for small employers.
 OSHA CONSULTATION provides free on-site safety and health services for small businesses. Employers
can contact their nearest OSHA area office to speak to the specialist.
 OSHA SHARP PROGRAM is a certification process. It certifies that small employers have achieved
commendable levels of safety awareness
LEVERAGING SMALL SIZE:
FAMILIARITY, FLEXIBILITY, FAIRNESS,
INFORMALITY, AND HRM
LEVERAGING SMALL SIZE
There are five ways through which entrepreneurs can use their small
size to improve their HR processes:
 FAMILIARITY,
 FLEXIBILITY,
 FAIRNESS,
 INFORMALITY,
 HRM
LEVERAGING SMALL SIZE
Smallness should translate into personal familiarity with each employee s

strengths, needs, and family situation. And it should translate into being
flexible and informal in the human resource management policies and
practices the company follows
For Familiarity
• Streamlined Interviewing Process should be followed to bring familiarity.
• Focus on four basic required factors i-e:

 Knowledge and experience,
 Motivation,
 Intellectual capacity, and
 Personality
And then ask a combination of situational questions plus open-ended
questions to probe the candidates’ suitability for the job.
Devise and use a plan to guide the interview
• College experiences
• Work experiences summer
• Goals and ambitions
• Self-assessments (by the candidate of his or her strengths and weaknesses)
Ask open ended questions:

 Keep in mind that you are trying to elicit information about four main traits
knowledge and experience, motivation, intelligence, and personality.
 Ask for Work-Sampling Tests if required.
And then MATCH THE CANDIDATE TO THE JOB!

For Flexibility
Limited resources or not, small businesses need training procedures. A

simple but effective four-step training process follows;
Step 1 - Write a Job Description. A detailed job description is the heart of

a training program. List the tasks of each job, along with a summary of the
steps in each task.
Step 2 - Develop a Task Analysis Record Form.
Step 3 - Develop a Job Instruction Sheet.
Step 4 - Prepare Training Program for the Job.
For Flexibility
Basically, the study found that small business owners, by personally interacting with all
employees each day, did a better job of understanding when work/life issues emerge.
WORK LIFE BENEFITS

Here are some examples:
 Extra time off - For example, Friday afternoons off in the summer.
 Bonuses at critical times - Small business owners are more likely to know what’s
happening with their employees. Use this knowledge to provide special bonuses, for
instance, if an employee has a new baby
 Make them feel like owners - For example, endeavor to give your employees input into
major decisions
Recognition
• RECOGNITION can often be as powerful as financial rewards.

• The personal nature of small business interactions makes it easier to recognize
employees. A short list includes;
 Role in presentations to top management

 Job rotation
 Encouragement of learning and continuous improvement
 Compliments
 Employee-of-the-month award
Recognition
SMALL BUSINESS BENEFITS FOR BAD TIMES:
• The recession hit smaller businesses benefits particularly hard.
• With the recession, more firms were also focusing their retention efforts on anything
they can do to get high performers to feel appreciated
Recognition
SIMPLE RETIREMENT BENEFITS:

•Access to retirement benefits is more prevalent in large firms than small one.
•The easiest way for small businesses to provide retirement benefits is through a SIMPLE IRA plan.
•With the SIMPLE (for Savings Incentive Match Plan for Employees) IRA, employers must (and
employees may) make contributions to traditional. employee IRAs. These plans are for employers or
small businesses with 100 or fewer employees and no other retirement plan.
Improved Communication
• Effective communication important in the small organizations.
• Some major examples of communication is small business:
 Newsletters.
 Online
 The huddle
Fairness and family business
• Most small business are family business since the owners are family member.
• Its difficult to work as non family member in family business.
Rules for Fairness in Family business:
 Transparent hiring process. Make rules clear, level of authority and decision making.
 Confront family issue. Resolves them separately.
 Treat People fairly.
 Erase privilege to anyone. Equal treatment. No biasness in dealing members.
Using Professional Employer’s Organization
These are vendors provide Personal and HR support functions to organizations.

Professional Employers Organizations (POE), Human Resource Outsources (HROs), staff leasing companies.
How do PEO’s Work:
 Provide manpower.
 Support in Payroll and other HR business functions.
 PEOs handles activities like hiring, payroll and taxes.
 Provide administrative services. Support HR office.
Using Professional Employer’s Organization
Why Use A PEOs:
 Lack of specialized HR support functions.
 Extensive paper works: Owner handover it to PEOs to ease the workload.
 Liability: Sharing liability, PEOs special focus on safety procedures, handling legal issues.
 Benefits: Availing the healthcare and insurances, as PEOs already have the coverage.
 Performance Improvement: PEOs are organized and training. Executing activities in

professional manners
Employers Shall Maintain Careful Relation with PEOs
 Need analysis. Actual requirement, at what stage. How much.
 Review all the available PEOs. Evaluate best among group.
 Determined if PEOs accredited. Register at every necessary bodies.
 Check the bank statement. Evaluate financial stability.
 Understand how it will benefit my organization.

Employers Shall Maintain Careful Relation with PEOs
 Proper contract arrangement. Documenting every aspect.
 Review services arrangement.
 Evaluate how long PEO’s is operating in the market.
 Deciding how PEOs performance will be evaluated.
 Periodic closing monitoring and evaluating the requirements.

MANAGING HR SYSTEMS, PROCEDURES AND
PAPERWORK
Basic Components of Manual HR System
Basic Forms: Support manual entry which includes; New employee form,
Current employee form and Employee separation.
Automating Individual HR Tasks
Packaged Systems
• Different firms provides software solutions for virtually all personnel tasks.
• Company sells software packages for monitoring attendance, employee
record keeping etc.
Human Resource Information System (HRIS)
It is an interrelated component working together to collect, process and store

information to support decision making.
Benefits of HRIS:
 Improved Transaction Processing - Provides powerful computerized

processing for a wide range of firms HR transactions.
 Online Self Processing - Employees can self enroll in all their desired benefit
programs over the internet.
 Improved Reporting Capability -Installing HRIS boosts reporting capability.
 HR System Integration - HRIS electronically routes transfers, and other e-
forms through the organization to the proper managers for approval.
THANK YOU

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MANAGING HUMAN RESOURCES

IN SMALL & ENTERPRENEURIAL FIRMS

Dua Rauf (20191 – 25561)

Haleema Sadia (20191 – 25311) Hiba Rashid (20202 – 26898)

Zainab Nadeem (20191 – 25365) Irfan Mir (20191 – 25553)

Create meaningful jobs

• Usually the owner and (sometimes) his or her assistant

• Expend more time and resources on non-HR issues

• Training tended to be informal, with an emphasis on

• People who create businesses under

• Lack of specialized HR expertise.

• Non-compliance with compensation regulations and laws.

• Paperwork duplication leads to data entry errors.

DOL EEOC OSHA

 THE PREDICTIVE INDEX measures work-related personality traits & behaviors in

 THE SBA: The federal government’s Small Business Administration (

 NAM: The National Association of Manufacturers (NAM)’s Virtual University (

Smallness should translate into personal familiarity with each employee s

• Focus on four basic required factors i-e:

Ask open ended questions:

And then MATCH THE CANDIDATE TO THE JOB!

Limited resources or not, small businesses need training procedures. A

Step 1 - Write a Job Description. A detailed job description is the heart of

WORK LIFE BENEFITS

• RECOGNITION can often be as powerful as financial rewards.

 Role in presentations to top management

SMALL BUSINESS BENEFITS FOR BAD TIMES:

• The recession hit smaller businesses benefits particularly hard.

SIMPLE RETIREMENT BENEFITS:

• Effective communication important in the small organizations.

• Some major examples of communication is small business:

• Its difficult to work as non family member in family business.

Rules for Fairness in Family business:

These are vendors provide Personal and HR support functions to organizations.

How do PEO’s Work:

Why Use A PEOs:

 Lack of specialized HR support functions.

 Extensive paper works: Owner handover it to PEOs to ease the workload.

 Performance Improvement: PEOs are organized and training. Executing activities in

 Need analysis. Actual requirement, at what stage. How much.

 Review all the available PEOs. Evaluate best among group.

 Determined if PEOs accredited. Register at every necessary bodies.

 Check the bank statement. Evaluate financial stability.

 Understand how it will benefit my organization.

 Proper contract arrangement. Documenting every aspect.

 Review services arrangement.

 Evaluate how long PEO’s is operating in the market.

 Deciding how PEOs performance will be evaluated.

 Periodic closing monitoring and evaluating the requirements.

Automating Individual HR Tasks

It is an interrelated component working together to collect, process and store

 Improved Transaction Processing - Provides powerful computerized

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