Question

personal management used in small business
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Answer 1

Every small business manager is a personnel manager in the sense that work is done through people,

with people and for the people. Consequently, the owner manager should be personally capable of

handling employee relations until the company becomes large enough to afford a personnel manager.

Planning personnel requirement, developing sources from which new employees can be recruited,

choosing (recruiting) the needed people, training and developing them into productive workers,

evaluating their performance, compensating them and dealing with various personnel relationship,

including industrial relation.

Staffing

Staffing is a critical function of organizing and managing a successful business. All companies, whether

large or small, are involved in the staffing process. All businesses run the same risk every time they hire a

new employee. The staffing function is generally divided into four major categories (1) staffing needs, (2)

acquisition, 93) motivation, and (4) retention.

Planning Personnel Requirements

As both quantity and quality of work force are important, personnel planning should be complete and

detailed, but flexible and updated at least half-yearly. The following statement is frequently made that

one should organize around ‘what is to be done ‘rather than ‘who is to do it’.

Job specification are written statements covering duties, authority, responsibility and working

conditions of the job and of qualifications required for a person to perform the job successfully. The use of

job specification will help the manager to match the person to the job to be filled up.

Finding new employees

There are two basic sources, one from the firm through promotion, upgrading or transfer; and the other

from outside the company through promotion, upgrading or transfer; and the other from outside the

company through recruitment and selection. More specifically, there are four sources usually used by

managers of independent business. They are:

1. Qualified people from within the organization

2. Personnel from competing firms in the industry

3. Organization outside the industry

4. Educational institutions