Chapter 17 introduced you to topics in helping you to hire the right people for your business. We discussed the employer-employee relationship and its affect on your business. We then discussed the rationale for establishing a clear vision for what environment you want for your business. We explored the characteristics of a psychopath, and what the advantages and disadvantages those characteristics can provide to your business. We explored the use of providing prescreening questionnaires. The importance of setting workplace expectations and how that is communicated to employees was discussed. We also discussed managerial psychology and how that impacts those who are hired in your business. We then discussed methods for setting the tone you desire for your business. We discussed the cost of an employee to an employer followed by a discussion on how to go about setting salaries for staff positions. We explored the aspects of vetting potential employees and discussed methods for interviewing candidates. Finally, we discussed employment contracts. The following exercises will help reinforce the concepts presented in the textbook.
Key Terms
Psychopath
a person exhibiting certain personality characteristics and antisocial behaviors characteristics. Psychopaths are aware of their actions and their consequences but simply don’t care.
Human Resources
the department of an organization that scouts for potential hires for an organization.
Stanford Prison Experiment
an infamous social psychology
experiment conducted in 1971 that attempted to investigate the psychological effects of perceived power and authority, focusing on the struggle between prisoners and prison officers.
FACE Performance Model
a performance model based on recurring face-to-face conversations between employees and supervisors that are focused on achieving our organization’s goals.
SMART Expectation Model
an employer model for providing the necessary information to employees in a manner and format that allows
employees a clear understanding of job role and workplace expectations.
Managerial Psychology
a sub-discipline of industrial and organizational psychology, which focuses on the efficacy of individuals, groups and
organizations in the workplace.
FICA: Federal Insurance Contributions Act
a federal act of 1935 that funds social security through mandatory taxes.
FUTA
The federal government uses the Federal Unemployment Tax Act (FUTA) tax, an employer-only tax, to fund oversight of state unemployment programs.
FUTA: Federal Unemployment Tax Act
a federal act of 1976 that imposes a federal employer tax used to help fund state workforce unemployment agencies.
Industrial & Organizational Psychology
the science of human behavior relating to work and applies psychological theories and principles to organizations and individuals in their places of work as well as the
individual’s work-life more generally.
Bureau of Labor Statistics
a unit of the United States Department of Labor that is the principal fact-finding agency for the federal government in the broad field of labor economics and statistics. The BLS collects, processes, analyzes, and disseminates essential statistical data regarding employment, job demand, salaries, and other
information to conduct research into how much families need to earn to be able to enjoy a decent standard of living.
Employee Vetting
a screening process conducted by employers for checking the background and verifying the information of a new hire or applicant. Aka credentialing among professional positions.
Expected Outcomes
Understand the employer-employee relationship and its affect on your business
Understand the rationale for establishing a clear vision for what environment you want for your business.
Recognize the characteristics of a psychopath, and what the advantages and disadvantages those characteristics can provide to your business
Recognize the use of providing prescreening questionnaires
Understand the importance of setting workplace expectations and how that is communicated to employees
Understand managerial psychology and how that impacts those who are hired in your business
Understand methods for setting the tone you desire for your business
Understand the cost of an employee to an employer
Understand how to go about setting salaries for staff positions
Know the aspects of vetting potential employees
Understand methods for interviewing candidates
Key Concepts
Establishing an Employer-Employee Relationship is one of the fundamental tenants you will build in your business
P&Ps, job descriptions & responsibilities, orientation & training are all ways to set the tone of the business and establish expectations for an Employer-Employee Relationship
Being the example is the most effective way to enforce the tone and expectations you have for your staff and the business.
Deciding on the tone and characteristics of the staff and business is critical before hiring any employees
Psychopathic traits have some advantages in business, particularly in management. Be aware of the drawbacks, and make the best choice for your business.
Questionnaires can do the work of narrowing potential candidates by assessing skills, knowledge, experience, and personality.
Staff do best when they know what is expected of them. It is your job to ensure you have a clear and consistent vision of what you want the business to be, and how you expect staff to get the business to reach that vision.
It is important to establish expectations for the business, individual staff members, and the staff as a team.
Expectations should be specific, measureable, attainable, relevant,and time focused.
Managerial psychology is a specific subfield in the field of Industrial and Organizational Psychology.
Managers have a separate set of concerns to be aware of when hiring.Their personality can cause them to feel an authority that is beyond their job responsibility.
Managers manage, only you can dictate and decide.
Setting the tone for your business starts with you.
Employers incur a number of additional expenses when paying employees.Be sure the additional costs are considered when hiring staff.
Salaries have national and local averages. However, other factors such as experience, business need, and personal choice are among many things that can influence an employee’s salary.
Vetting candidates is among the most important things you can do to safeguard your business. Using a third party vendor who specializes in such vetting is recommended
People tell you who they are in words, actions, demeanor, and other nonverbal behaviors. Pay attention and trust your gut.
Use assessment tools to determine if an applicant is qualified, then use the interview to get to know whether the candidate is the right fit for your business.
Ask provocative questions in an interview; don’t ask cliché or illegal questions.
Chapter Slogans
Put your business first!
People hire people they like.
People hire people like themselves.
People tell you who they are.
Trust your gut.
Never hire anyone you can’t fire!
THINGS TO CONSIDER
What type of boss do you want to be?
What level of tolerance will you have for various behaviors in your workplace?
What salaries will you offer?
What benefits will you offer?
What employer-employee relationship do you want to have with those in your business?
POUND THE PAVEMENT
Speak with people you encounter in various situations (i.e. getting coffee, buying clothes, eating out, etc). Ask them how they feel about their job.Do they feel valued by the company? Do they feel heard when they address concerns?What do they say would make them feel that they would want to stay and work hard for the company?
For this exercise, there is no pavement to pound. Sit in your home and reflect on past jobs you yourself have had in your life.What did you like and dislike about those jobs? What made you feel valued or unvalued at those jobs?How did the management or owner treat you and others?
