Advanced
Small Business Management
Leadership
In A Small Business
Your employees are your most important
asset. What you make of them depends on how you treat them ...how you manage
them ...how you lead them. this guide will give you some helpful advice
in this matter.
Source: The "Managing
a Small Business" CD-ROM
If an employee's job satisfies his or her needs,
the employee responds more favorably to the job. This may happen, for example,
when an employee is given the responsibility for managing the office on
his or her own, and is recognized for doing it well. Or it may occur when
a sales representative is assigned full responsibility for developing new
business as well as maintaining existing customers in a territory and is
recognized for the accomplishment. Such employees tend to take their responsibilities
seriously, act positively for the firm, and are absent from work only rarely.
The key point is that when a job satisfies needs, the employee may bring
greater commitment to the job. Some needs common to all individuals are
basics like food, shelter, and security for the future. Normally a fair
wage level and a feeling of security that the job will continue, tend to
satisfy these needs. Such needs, however, can be satisfied in most jobs
today, and they do not alone evoke heavy commitment by employees to your
firm.
Other needs must also be satisfied. Most of these are related to:
a. The firm's personnel practices such as complaint handling or vacation
scheduling
b. Working conditions
c. Supervisory practices such as discipline, or the way instructions
are given, and
d. Total compensation, including benefits practices.
If what the firm provides in any of these aspects is seen by the employees
as much poorer than what other firms in the area provide, dissatisfactions
will result. On the other hand, improvements above an acceptable level
generally do not bring about greater employee commitment in the long run.
For example, total disregard for employee complaints (personnel practices)
can lead to serious problems for the firm. When employee complaints are
handled well, serious problems tend to be precluded from developing but
there is no major gain in deep employee commitment to the job.
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What then does bring about a serious commitment to the job and firm?
There are five factors that generally cause a deep commitment to job
performance for most employees.
These are:
-
The work itself - to what extent does the employee see the work as meaningful
and worthwhile?
-
Achievement - how much opportunity is there for the employee to accomplish
tasks that are seen as a reasonable challenge?
-
Responsibility - to what extent does the employee have assignment and the
authority necessary to take care of a significant function of the organization?
-
Recognition - to what extent is the employee aware of how highly other
people value the contributions made by the employee?
-
Advancement - how much opportunity is there for the employee to assume
greater responsibilities in the firm?
These five factors tend to satisfy certain critical needs of individuals:
-
One need is the feeling of being accepted as part of the firm's work-team.
-
Another need is for feeling important - that the employee's strengths,
capabilities and contributions are known and valued highly.
-
A third need is for the chance to continue to grow and become a more fully
functioning person.
-
If the kinds of needs just described are met by paying attention to the
five factors previously listed, an owner/manager will have taken significant
steps toward gaining the full commitment of employees to job performance.
To do this, several practical strategies can be used, such as:
-
Establishing confidence and trust with your employees through open communication
and the development of sensitivity to employee needs
-
Allowing employees participation in decision-making which directly affects
them
-
Helping employees to set their own work methods and work goals, as much
as possible
-
Praising and rewarding good work as clearly and promptly as inadequate
performance is mentioned
-
Restructuring jobs to be challenging and interesting by giving increased
responsibilities and independence to those who want it, and who can handle
it.
Good Delegation
One practical way to work on these strategies is to practice good delegation.
Simply defined, delegation is the granting of authority and independence
to another person to complete a project. It must be understood that with
the authority to do a job, comes the responsibility to get it done.
A manager who practices good delegation automatically also makes use
of the strategies which bring greater commitment on their part.
A second benefit of good delegation - one not related to the personnel
functions - lies in the opportunity it gives you to spend more of your
time on important work which you cannot delegate.
For all these reasons, delegating work and responsibility can be very
beneficial to you and for your company. But to be effective, delegation
must be used with some caution. Before delegating a project, you, as the
manager, must first answer two questions:
1. To whom should projects be delegated?
2. What kind and how much work and responsibility can be delegated
to this person?
It is important to understand that delegation involves projects which
include significant decision making. If your employee is not given the
responsibility to make decisions, it is not delegation. The assigning of
routine and repetitive work does not bring the benefits which delegation
can bring and therefore is not part of the strategy for achieving a climate
that brings greater commitment by employees.
Work assignment, even though the employee is asked to perform a specific
task as assigned, also has the potential to add to the positive climate
- when it is fair and takes employee preferences into consideration This,
obviously, is difficult to do all the time, but if employees are given
as much of a voice in deciding who should receive non-regular work assignments,
good ones as well as undesirable ones, then these assignments are likely
to have a beneficial impact on morale.
Delegating work to an employee who is not ready to accept the responsibility
can have two negative effects:
1. The job will not get done or not be completed on time.
2. The failures that result from ineffective delegation will have an
understandably bad effect on the affected employee.
When delegating, it is good to always remember that effective delegation
of work is not giving up all your authority. The delegate should have a
fair amount of freedom, but the manager must retain some control. This
will insure that the project is satisfactorily completed.
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