entrepreneurship
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Entrepreneurship. 13. Building the New Venture’s Human Resources: Recruiting, Motivating, and Retaining High-Performance Employees. “Surround yourself with the best people you can find, delegate authority, and don’t interfere.” --Ronald Reagan, 1986. Ultimate Success. - PowerPoint PPT PresentationTRANSCRIPT
Entrepreneurship
Building the New Venture’s Human Resources: Recruiting, Motivating, and
Retaining High-Performance Employees
13
13-2
“Surround yourself with the best people you can find, delegate authority, and don’t interfere.”
--Ronald Reagan, 1986
13-3
Ultimate Success
Success for new ventures…• derives from a smooth and orderly
shift…• to a state in which the entrepreneur
has assembled a first-rate team of employees…
• to whom she or he can delegate many of the growing venture’s key processes.
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Attracting, Motivating, and Retaining EmployeesWhy are these topics important?• In the early stages, you perform
them.• You can place your personal
“stamp” on these processes.• When it’s time to delegate, you’ll
choose the best people for the job.
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Recruiting and Selection
The search for high-performance employees begins with two questions:
• Where should you search for high-quality employees?
• What specific techniques should you use to identify the best among them?
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Knowing What You Need
• Job analysis—what knowledge, skills, and abilities are required?
• Job description—an overview of what the job involves
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Beginning the Search
• Social networks• Trade journals, newspapers, etc.• College and university employment
centers• Internet sites• Current customers• Headhunters
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Selection
Selection tools and techniques must be
• Reliable• Valid• Legal
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Employment Interviews
This selection technique is low in validity because:
• Interviews are largely unstructured• Interviewers may ask different
questions of applicants• Interviewers may be biased• Assessing others is more difficult
than most people realize
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Improving Interviews
The validity of interviews can be improved with
• Structured interviews• Biodata• Reference checks
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Motivation
Behavior that is energized by, and directed toward, reaching some desired target or objective
Arousal Direction Persistence GOAL
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The Role of Goals in Motivation
Goals must be• Challenging• Attainable• Specific• Accepted• Reinforced with
feedback
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Expectancy Theory
People will be motivated when they believe that
• Expending effort will improve performance
• Good performance will be rewarded• The rewards offered are the ones
they really value
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Maintaining Motivation
• Provide the training and resources necessary to ensure that effort leads to good performance
• Recognize and reward good performance
• Provide the rewards employees really value
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Fairness and Motivation
• Unfairness leads to a strong drop in motivation.
• Unfairness is perceived when there’s an imbalance between contributions and outcomes relative to those of other persons.
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It’s Not Fair
• Distributive justice• Procedural justice• Interactional justice
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Playing Fair
• Link rewards closely to performance• Establish fair procedures for
employee evaluations and rewards• Treat employees with courtesy and
respect
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Making Jobs Motivating
Job design—structuring jobs so they increase people’s interest
• Job enlargement• Job enrichment
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Retention Strategies
• Developing excellent reward systems
• Building a high level of commitment and loyalty among employees
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Pay for Performance
• Merit pay plans • Bonuses, awards, and stock options• Team-based incentives• Profit sharing• Employee stock ownership plans
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Organizational Commitment
The extent to which an individual identifies and is involved with his or her organization and is, therefore, unwilling to leave it
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Types of Commitment
• Continuance commitment
• Affective commitment
• Normative commitment
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Phases of Company Growth
• Conception/existence• Survival• Profitability and stabilization• Profitability and growth• Take-off• Maturity
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The Control Barrier
PhaseOne
PhaseTwo
PhaseThree
PhaseFour
PhaseFive
PhaseSix
Entrepreneurs skills and abilities and essential to success
CONTROLBARRIER
Delegation, recruiting, motivation, and retention are crucial factors