HR management

1. HR management Super-project.eu

2. Hiring - importance • An important decision for each organization - magnified many times in the context of new and growing ventures • Consequences of bad hires: • Negative impact on firm’s performance • Poisoning a small firm’s culture • Hiring mistakes are quite frequent. In most cases, they result from insufficient selection and hiring process..

3. Most common reasons behind poor hiring decisions • Relying on candidates’ descriptions of themselves • Failing to follow a consistent, evidence-based selection process • Making hiring decisions very quickly and relying solely on own intuition • Failing to provide sufficient and objective information about the job • Failing to resist the temptation to fill a job as soon as possible • Failing to check candidates’ references

4. Useful tips for recruiting strategies • Look inside the company first • Encourage employees and incentivize referrals • Use multiple advertising channels • Recruit on campuses and universities • Establish relationships with schools and other potential sources of employees, offer internships • Recruit “retired” workers • Use unconventional recruiting techniques • Offer attractive and personalized alternative benefits

5. Leadership & business lifecycle • Leadership = the process of influencing and inspiring others to work to achieve a common goal and then giving them power and the freedom to achieve it • Changing requirements on leadership • Inception – small teams, cooperation – direct supervision and good contact • Early growth – centralized control and direct contact - moving towards more delegation and coordination • Expansion/rapid growth – delegating responsibilities (but in more decentralized structure), indirect reporting and control • Maturity – leadership turns into a watchdog for the organizational culture and overall vision and goals

6. Organizational culture • = a distinctive, unwritten, informal code of conduct that governs its behaviour, attitudes, relationships and style. • = “the way we do things in our company” • Plays an important role for gaining a competitive advantage • Arises from an entrepreneur’s consistent pursuit of core values • Should be also reflected in performance measures - expectations on future employee’s performance and respective performance measures should be explained during hiring process • Sustaining firm’s culture begins with hiring

7. How to assure a cultural fit • Articulate what values, norms and practices define your business • Clearly express your culture in all your communication materials • Anyone involved in interviewing candidates must know your culture well and refer to it throughout the hiring process. • Take the time to provide a look at your culture in real time and discuss it afterwards. Look for other than trained answers.. • Ask candidates to take personality tests and arrange them meetings with team members from different levels across the firm. • Avoid asking candidates about personal issues – some questions are illegal to ask when interviewing a prospective employee. • Too much conformity as may cause lack of diversity, leading to poor creativity and decreased competitiveness.

8. Motivation and compensation • Main advantages of small firms are especially the following: • Can offer more rewarding and interesting jobs. • Opportunity to keep staff much more involved. • Flexibility to tailor roles to individuals • Less hierarchy, better communication and involvement. • Main challenges involve the following: • They cannot always offer the benefits as large companies can, so they need to attract and motivate staff in different ways. • People need to take on more than one role and do tasks somewhat outside the job description.

9. Rewards and compensation system • A key motivational instrument in each company • Two important prerequisites to use rewards to motivate: • Link them to performance • Tailor them to employees’ needs and characteristics • Components of rewards and compensation system include: • Salary • Financial incentives • Benefits • Intangible incentives

10. Rewards and compensations: Tips and good practices • Tips and good practices for small businesses are: • Include a personal preferences survey into the new hire orientation. • Publish employees’ results and accompany it by a personal thank you or some other recognition. • Provide training incentives relevant to employee’s job. • Don't discount the power of fun at work to de-stress and motivate employees. • Each employee is an individual - what works well for one employee might have the opposite effect on someone else. • Motivation system should be closely linked with firm’s culture and reinforce it.

11. Introducing HR management practices and hiring an HR specialist • In earlier stages, HR acquisition and management is either performed by the entrepreneur himself (or by a member of founders’ team) or delegated on ad hoc basis. • Later on, these competencies are delegated to member of the management team. • Finally, the stage that follows include establishing specialist HR function • When to hire an HR specialist? • If dealing with legal issues becomes too demanding • When you're hiring rapidly • HR specialist from staff headcount around 10-15 to 30-35, and HR manager at staff headcount from around 50 upwards. It is very individual and depends on many factors.

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