12. Managing people

MANAGING PEOPLE 12

If the small business entrepreneur is going to have a growing  and successful business, that person must understand  how to manage one of the business’s most  important recourses, people.
The main objective of the personnel function is to recruit and maintain an efficient  work force. This calls for the effective management of people, ensuring  a good relationship  between people and fostering  opportunities  for individual  development.
The finding and keeping of good employees is not easy.
A small  business owner should aim to hire  those individuals who are best qualified to fill the job requirements. The education, experience and personality of each candidate  must be carefully considered. The selection  of effective personnel is essential if a business is to grow and prosper. Before selecting an employee, the following points need to be considered:
- a description of the job to be fulfilled.
- A source of applicants.
- A basis for selecting  the best candidate.
- A training program for the individual after hiring.

Position description  has two parts. The first is a  job description, which includes the main tasks and responsibilities of the position. The second part is called the job specification. This part defines the education, work experience, skills, and abilities the individual must have in order to perform the job effectively.
Sources of employees. It is better to seek out applicants for employment rather than wait for them to come to your business. Recruiting is the practice  of actively seeking workers rather than  waiting  for them to come to you. A number of sources of possible workers are:
- suppliers are good source  of possible applicants.
- Private  and public employment agencies, usually for a fee, can help find the right applicant.
- High schools, vocational and technical schools, business schools, and colleges offer assistance to employers.
- “help wanted” advertisements for applicants in the classified section of newspapers are beneficial, but they must be specific about the job requirements.
- Additional sources of personnel include radio and television announcements, and referrals from your employees, your friends,  business associates, and customers.
The application form. Application forms should fit the needs of the company and conform to the law. Their purpose is to furnish the personnel manager with enough information  about applicants so that a judgment as to their qualifications for a job can be made.  Only questions referring to a person’s ability  to perform a job are permissible.
The employment interview. Before conducting an interview, the interviewer  should become familiar  with the application. Then the applicant should  be put at ease and encouraged to discuss items on the application which need to be clarified. The interviewer should take enough  time to obtain information on which to base a decision.
Testing the applicant. Many forms of tests are used to determine an applicant’s aptitudes, attitudes, skills and suitability for employment. The nature of the work to be performed determines  the type  of test to be used.
References. Before deciding to hire an individual, the references which have been provided should be checked. References are persons who have known the applicant for some time and their information may be helpful.
Employee training includes any activity that provides information or the development of skills that improves the employee’s performance.
Training usually either on-the-job or formal. On –the –job training an employee usually receives after being hired  is an orientation  to the company and the job. This training may consist of an employee manual plus some information provided by the employee’s boss. Formal training refers to organized instruction in a workshop or classroom situation. One of the best sources for the small business  employer can be found in adult educational programs. These programs benefit both the  employer  and trainee as they are of high quality  and are usually free. Other forms of education, such as special or technical university courses, are sometimes useful in upgrading specific employees.