Employee Relations for Smaller Businesses Organizing a Customer-Driven Business BUS 208_ER_Part A Spring 2006 Copyrigh The Changing Role of Management • • • • • Manager vs Leader Boss vs “Coach” Demand vs Delegation Empowered vs Controlled Communicate WITH vs Communicate AT • Trained vs Labor “old” Fundamentals of Bureaucracy  Chain of Command  Rules & Regulations B oss V ic e P r e s id e n t  Set Up by Function S u p e r v is o r  Communication = Minimal E m p lo y e e Organizational Structures Tall Organizations - Many Layers of Mgmt - Cost of Mgmt.=High Flat Organizations - Current Trend - Creation of Teams Inverted Organization Structure Empowered front-line workers Support Personnel Top Mgmt Customer-Focused Design • Information KEY • Build teamwork – cross-functional – integration • Self-management & autonomy • “Bottom-up” relationships • Outsource • Global orientation • Internal vs external customers Customer-Driven-Powered Cultures • Responsive to Internal & External Customers (and all stakeholders) • Focus on the benefits for the customer and not the just the benefits for the company Internal vs External Customers Internal       Your employees Your distributors Your partners Your board Your “stakeholders” YOU! External  Your Target Market If you can keep your internal market satisfied, you have a much better chance of keeping your external market satisfied! Compensating Your Employee The Role of Incentives for Retaining Employees The RIGHT Employee is Your Best Asset • They bring talents, expertise, skills & suggestions to your business • They are there everyday helping you run your business, and good employees take “ownership” & pride in their work • The SUM can be greater than the whole The right employee can help you expand your business and help you make profits “Flexing” for your employees • An increasing number of companies are offering flextime and flex-place as an incentive to their employees • Flex-time is an arrangement where employees work a normal number of hours but have have the flexibility of when they work • Flex-place allows for telecommuting Motivating Employees • Motivation is the degree of effort an employee exerts to accomplish a task- it is shows up as the excitement about his/her work • Motivating employees to higher levels of performance is still one of the BIGGEST challenges employers face Is Money the “best” motivator? • For most of us it is important, but… • Money alone is NOT enough for most employees (people)… • It is not the only factor that will help you retain a good employee • What motivates you to stay on a job? Most Common U.S Motivators Source: Incentive Federation Intrinsic and Extrinsic Motivators • Intrinsic comes from within This is selfmotivation • Employees that are selfmotivated take pride in what they • Extrinsic comes from the outside This includes salary, bonuses and praise from others Intrinsic vs Extrinsic Rewards Extrinsic = Outside Recognitio n Promotion s Gifts Intrinsic = Inside Feeling of Job Well Prid Done e Sense of Achieveme nt Praise Salary Increase Status Maslow’s Hierarchy of Needs Unsatisfied SelfActualizati on Esteem Needs Social Needs Safety Needs Physiological Needs Satisfie d Four Aspects of Motivation Entrepreneurs CAN motivate employees without going broke Here are five strategies Empowering Employees Effective Job Design Fair Rewarding & Compensation Feedback & Positive Communication Being a good role model and leader Building the Best “Culture” for Your Business Environment • When you are hiring you are taking a BIG step, for the employer and for your business • It is just as important to consider how the candidate will “fit” into your business culture, as their skills to the job • Creating a culture is defined by “leadership” of the company…Culture arises from your consistent and relentless pursuit of a set of core values that everyone in your company can believe in “ People are NOT your greatest asset! The “right” people are your greatest asset!” From, First Break All the Rules Why have an Employee Policy Manual • In order for an organization to function properly it needs to have rules to follow and policies to help proceed • An Employee Policy Manual is the guide for the employee and the owner • Your Employee Policies & Procedure Manual should describe the basic attributes of employment at your company that need to be known in advance before an employee agrees to accept your position Outline of Major Points that Should Be Addressed in An Employee Manual • • • • Employee Compensation Employee Benefits Employee Travel Policy Reimbursement of Expenses • Hours of Work, Work Schedules • Key Policy • Trade Secrets and Confidentiality • Employee Performance Evaluation Procedures • Employee Suggestion Policy • Employee Termination Policy • Non-discrimination & Sexual Harassment Policy • Employee’s Use of Equipment Policy • Employee Privacy How You Can Be a Great Boss: Become a Leader not just a Manager or Employer - Leadership is the process of influencing and inspiring others to work to achieve a common goal and then giving the power and the freedom to achieve it! Leadership and Management Management and Leadership are Not the same, but both are important in small business • Leadership without management is unbridled • Management without leadership is unispired • Leadership is often the passion to get the business going • Management is the tool to keep the business on track • Management deals with things; Leadership deals with people You manage things; you lead people What is a Good Boss? Think about the employers you have worked for… What you consider makes a “good boss”? What attributes you look for when you want to work for someone? What character traits you want to avoid? Great Boss 101  Define and constantly reinforce the vision for the organization Respect & Support employees Set the example for the employees Creates a climate of trust and “safety” Focus on employees’ efforts on challenging goals Provides the resources to get the job done Communicates effectively with employees Values the diversity of their workers Celebrates the employees success (gives credit when credit is due) Encourages creativity Maintains a sense of humor Creates a motivational environment Becomes a catalyst for change Keeps their eyes on the horizon ... customer retention • Increases overall profits of business • Helps retain good employees! Role of Incentives for the Employee • The opportunity for the employee to MAKE more money • The chance to make... Compensating Your Employee The Role of Incentives for Retaining Employees The RIGHT Employee is Your Best Asset • They bring talents, expertise, skills & suggestions to your business • They are... chance to make more than the ‘base’ salary • The opportunity for the employee to be rewarded for a “job well done!” • The ability for the employee to set goals and pursue them (MBO… management by