HUMAN RESOURCES

MANAGEMENT
BUILDING A FOUNDING
TEAM

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HUMAN RESOURCE MANAGEMENT

HRM = Right People, Right Place, Right Time

Human resource management (HRM or HR) is the strategic approach

to the effective management of people in a company or organization
such that they help their business gain a competitive advantage.
 THE IMPORTANCE OF HUMAN RESOURCES
MANAGEMENT (HRM)
• Necessary part of the organizing function of management
• Selecting, training, and evaluating the workforce

• An important strategic tool

• HRM helps establish an organization’s sustainable competitive advantage.

• Adds value to the firm

• High performance work practices lead to both high individual and high
organizational performance.

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 MANAGING HUMAN RESOURCES
• Human Resources (HR) Planning
• The process by which managers ensure that they have the
right number and kinds of people in the right places, and at
the right times, who are capable of effectively and efficiently
performing their tasks
• Human Resources Inventory
• A review of the current makeup of the organization’s
resources status
• HR Management Information Systems (HRMIS)

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 THE HUMAN RESOURCES
MANAGEMENT PROCESS
Environment

Human
Identification and Selection
Resource Recruitment Selection
of Competent Employees
Planning

Decruitment

Adapted and competent

Orientation Training employees with up-to-date
skills and knowledge

Compensation Competent and high-performing employees who

Performance Career
and are capable of sustaining high performance over
Management Development
Benefits the long term

Environment

1. Identifying and selecting 2. retains competent employees

18 3. knowledge and skills
 STAFFING THE ORGANIZATION
• Recruitment
• The process of locating, identifying, and
attracting capable applicants to
an organization

• Decruitment
• The process of reducing a surplus
of employees in the workforce
of an organization

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 TYPES OF SELECTION DEVICES
• Application Forms
• Written Tests
• Performance Simulations
• Interviews
• Background Investigations
• Physical Examinations

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 SELECTING - INTERVIEWER SKILLS
“Being an effective manager requires good selection skills. Today
we will learn how to become a good interviewer”

• What are some of the questions NOT to ask interviewees?

• Take 3 minutes to write down as many as you can remember.
• Be prepared to share some with the class

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 SELECTING – INTERVIEW SKILLS:
QUESTIONS NOT TO ASK JOB
CANDIDATES
• About name changes; maiden name
• For birth certificate.

• Whether applicant is single, married, divorced, engaged, separated, widowed, or living

common-law
• About birthplace, nationality of ancestors, spouse, or other relatives
• For photo to be attached to application or sent to interviewer before interview

• About religious affiliation.

• About Working under Female boss.

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 SELECTING –TIPS FOR MANAGERS:
SOME SUGGESTIONS FOR
INTERVIEWING
• Structure a fixed set of questions for all applicants.
• Have detailed information about the job for which applicants are
interviewing.
• Minimize any prior knowledge of applicants’ background, experience,
interests, test scores, or other characteristics.
• Ask behavioural questions that require applicants to give detailed accounts of
actual job behaviours.
• Use a standardized evaluation form.
• Take notes during the interview.
• Avoid short interviews that encourage premature decision making.

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 INTERVIEWER - PRACTICE

• Conducting an Interview
• Consider job description
• Identify key questions to ask
• During the interview:
1. Make the interviewee comfortable (rapport building)
2. Discuss the purpose and structure of the interview
3. Ask your questions
4. Close the interview – ask if there are any questions you have not asked and inform them of the
next step (follow up after the interview)

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 ORIENTATION AND SKILL DEVELOPMENT

• Bringing a new employee into the organization

• Work-unit orientation
• Familiarizes new employee with work-unit goals
• Clarifies how his or her job contributes to unit goals
• Introduces employee to his or her co-workers
• Organization orientation
• Informs new employee about the organization’s objectives, history, philosophy, procedures, and
rules
• Includes a tour of the entire facility

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 MANAGING AND REWARDING
PERFORMANCE
• Performance Management System
• A process establishing performance standards and
appraising employee performance in order to arrive at
objective HR decisions and to provide documentation in
support of those decisions
• Written Essays
• Critical Incidents
• Graphic Rating Scales
• Behaviourally Anchored Rating Scales (BARS)
• Multiperson Comparisons
• Management by Objectives (MBO)
29 • 360-Degree Feedback
RETAINING COMPETENT EMPLOYEES
Specific Performance Appraisal Methods

Method Advantage Disadvantage

(a) Written essay descriptions Simple to use More a measure of
of employee’s strengths and evaluator’s writing ability
weaknesses than of employee’s actual
performance
(b) Critical incidents examples Rich examples; Time-consuming; lack
of critical behaviors that were behaviorally based quantification
especially effective or
ineffective
(c) Adjective rating scales— Provide quantitative Do not provide depth of
lists descriptive performance data; less job behavior
factors (work quantity and timeconsuming assessed
quality, knowledge, cooperation, than others
loyalty,attendance, honesty,
initiative, and so forth)
with numerical ratings
RETAINING COMPETENT EMPLOYEES
Method Advantage Disadvantage
(d) BARS—rating scale Focus on specific and Time-consuming;
+ examples of measurable job difficult to develop
actual job behaviors behaviors measures
(e) MBO—evaluation of Focuses on end goals; Time-consuming
accomplishment of results oriented
specific goals
(f) 360-degree More thorough Time-consuming
appraisal—feedback
from full circle of those
who interact with
employee
(g) Multiperson— Compares employees Unwieldy with large
evaluation comparison with one another number of employees
of
work group
 FACTORS THAT INFLUENCE
COMPENSATION AND BENEFITS
How long has employee
been with company and
how has he or she performed?

How large is the Does job require

company? Employee’s Tenure high levels of skills?
and Performance

How profitable is the Size of Kind of What industry is job in?

company? Company Job Performed

Company Level of Kind of

Profitability Compensation Business
and Benefits
Geographical
Unionization
Location

Where is organization Management Labour- or

located? Is business unionized?
Philosophy Capital-Intensive

What is management’s Is business labour- or

philosophy toward pay? capital-intensive?

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 PERFORMANCE
TOP 10 JOB FACTORS FOR COLLEGE
GRADUATES
(ranked in order of importance)
1. Enjoying what they do
2. Opportunity to use skills and abilities
3. Opportunity for personal development
4. Feeling what they do matters
5. Benefits
6. Recognition for good performance
7. Friendly co-workers
8. Job location
9. Lots of money
10. Working on teams

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Team
• Together
• Everyone
• Achieves
• More
 TEAM BUILDING
Group: A collection of two or more interacting
individuals with a stable pattern of
relationships among them, who share
common goals and who perceive
themselves as being a group.

Essentials of a group
1. Social interaction
2. Stable structure
3. Common interests
4. Perceive themselves as part of group
 DIFFERENCE BETWEEN A GROUP AND TEAM
GROUP
• Strong, clearly focused.
• Individual accountability.
• The group’s purpose is the
same as the broader
organizational mission.
• Individual work products.
• Runs efficient meetings.
• Measures performance
indirectly by its influence on
others.
• Discusses, decides, and
delegates.
TEAM
• Shared leadership roles.
• Individual and mutual
accountability.
• Specific team purpose that the
team delivers.
• Collective work products.
• Encourages open-ended
discussions, active problem
solving meetings.
• Measures its effectiveness
direct by collective work
products.
• Discusses, decides, & does
real work together.
Stage 5 :Adjourning

Team may disband on

achieving their goals
or because members
leave.
 STAGES OF TEAM DEVELOPMENT
BEHAVIORS

Stage Theme Task - Relationship

Orientation -Orientation
1 Awareness Commitment Acceptance

2 Conflict Clarification Belonging

3 Co-operation Involvement Support

4 Results Achievement Pride

5 Separation Recognition Satisfaction

ACTIVE LISTENING IN TEAMS EXAMPLES
• To convey interest in what the
other person is saying.
• To encourage the individual to
expand further on his or her
thinking.
• To help the individual clarify
the problem in his or her own
thinking.
• To get the individual to hear
what he or she has said in the
way it sounded to others.
• To pull out the key ideas from a
long statement.
• I see!
• Yes, go on or Tell us more.
• Then the problem as you see is
…….
• This is your decision then and
the reasons are ….If I
understand you correctly you
are saying that we should ...
• Your major point is …
You feel that we should ….
TASK ROLES FOR TEAM
MEMBERS
• Information Giver
• Information Seeker
• Initiator
• Opinion Giver
• Elaborator
• Consensus Seeker
• Clarifier
• Standard Setter
• Representative
 PROCESS ROLES FOR
TEAM MEMBERS
• Encouraging
• Gatekeeping
• Listening
• Harmonizing
• Yielding
• Accepting
• Supporting
THINGS TO KEEP IN MIND WHEN
CREATING A START-UP
Evaluate your skills

Use your strengths

Ask for feedback of your actions

THE ENTREPRENEUR’S TEAM

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BUILDING A POWERFUL TEAM

Create a staffing plan

Find people
to fill positions

Your personal Your advisors’ Your extended

network Network Network

Friends Professors
Family Alums
 ATTRIBUTES OF SUCCESSFUL TEAMS

• Cohesion – “We’re in this together”

• Teamwork – make others’ job easier; no individual heroes
• Integrity – hard choices and trade-offs based on what is good for the customer
• Commitment to the long haul – no one benefits by signing up now and bailing out
early
• Harvest mind-set – capital gain is the goal, not a paycheck
 ATTRIBUTES OF SUCCESSFUL TEAMS

• Commitment to value creation – making the pie bigger for everyone

• Equal inequality – democracy does not work well in start-ups
• Fairness – rewards are based on contribution, performance, and results over time
• Sharing of the harvest – 10 – 20% of “winnings” is frequently set aside to distribute to
key employees; characteristic of the most successful entrepreneurs
 COMMON PITFALLS

• Do not use the “honeymoon” period of start-up advantageously

• Do not answer the questions of who is in charge, who makes the final
decisions, and how real differences of opinion are resolved
• Do not address or recognize the deficiencies of the lead entrepreneur or the
management team

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 COMMON PITFALLS

• Do not recognize that creating and building a new venture is a

dynamic process
• Do not identify and defuse destructive motivations of investors,
prospective team members, or the lead entrepreneur
• Do not value trust and integrity

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 RULES FOR FRIENDS AND FAMILIES

• Friends/family members must possess real skills and expertise required by the
venture
• They need to share the same work ethic as the entrepreneur
• The advisory board must include outsiders to balance input objectivity
• All relationships are business oriented and must be stated clearly in contractual
terms.

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 FILLING THE GAPS

• The founder
• Every team starts with the founder (aka, the lead entrepreneur)
• Founder determines whether team is needed, assesses talent, skills, track record, and
contacts of possible members
• Founder needs to determine what the venture requires in order to succeed
 FILLING THE GAPS

• The opportunity
• Whatever the team needs are depends on the fit between the lead entrepreneur and
the opportunity
• Entrepreneur must clearly define:
• the value added and logic of business model (revenues and costs)
• Critical success factors
• Extent to which s/he has access to critical resources and relationships
 FILLING THE GAPS

• Outside resources
• Gaps can be filled by external resources:
• Boards of directors, accountants, lawyers, consultants, etc.
• Entrepreneur must consider:
• Whether need is specialized, one-time or part-time or a critical continuous need
• What trade secrets might be compromised if external expertise is used
EXTERNAL TEAM MEMBERS
Outside
Investors

Board of
Lawyers
Directors
Virtual
team

Board of
Accountants
Advisors
PROBLEMS THAT NEW VENTURE
TEAMS FACE

Family Pressure Burn-out

Interpersonal
Conflicts