Exam 10: How to Obtain and Manage Human Resources and Diversity in Small Companies

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The basic management function of staffing involves (1) planning for, (2) recruiting, (3) selecting, and (4) training and developing employees, as well as compensating them and providing for their health and safety.

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In small firms, managers are usually promoted from within, but many businesses hire college graduates for management trainee programs. The characteristics to be developed to produce good managers are creativity, productivity, innovativeness, communication skills (including oral, written, nonverbal, and telephone), self-motivation, and the drive and energy to motivate and energize others to achieve consistently large amounts of high-quality work. You can see that these tend to be the same qualities that lead to success as an entrepreneur.
In addition to the usual methods used to develop all employees, some special techniques are used to develop managerial personnel. These include (1) coaching, (2) planned progression, (3) job rotation, and (4) executive development programs.

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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; and (3) their motivation. The first of these depends on effective recruiting and selection. The second results from personnel development and the third, motivation, results from the manager's leadership abilities. Not only must new employees be trained, but the current ones also must be retrained and upgraded if they are to adjust to rapidly changing job requirements. Some of the results of training and developing workers include (1) increased productivity, (2) reduced turnover, (3) increased earnings for employees, (4) decreased costs of materials and equipment due to errors, (5) less supervision required, and (6) improved employee satisfaction.
Many methods can be used to train nonmanagerial employees including (1) on-the-job training (OJT), (2) apprenticeship training, (3) internship training (4) cross-training, and (5) E-training.