S M A L L - B U S I N E S S - P R O B L E M - N U M B E R - 10

How to select good employees
, and how to successsfully manage these employees with regard to salaries, benefits, and labour laws

Staffing is finding the right person for the job. After organization, it is the next logical step in managing a business.

Big companies realize that their success depends very largely on how they select and manage the people who work for them. This explains why sound companies do not only have a Personnel Department, but also assigns a senior executive to head it. The importance of recruitment, selection, and training of new employees, and the development of loyalty and morale calls for direction from management at the highest level.

What holds for big business holds for you too. In managing the people who work for you, you should aim at three things.

  • First, you should attempt to match every worker as suitable as possible to his job.

  • Second, you should create an environment in which he can do his job fast and well.

  • Third, you should design conditions that encourage loyalty and good morale, that is, you should make him want to work fast and well, and that he or she will be rewarded accordingly.

Competent and loyal staff members are important assets to your business, there are various reasons for this.

  • First, content and well-treated staff, reflect enthusiasm in their dealings with the public, which contributes to the goodwill of your company.

  • Second, while the machines and materials you use are available to all your competitors at approximately equal prices, your firm's personnel are unique. In this lies potential for great development.

  • Third, whereas the large firm can achieve efficiency by means of expensive machines, the small business relies rather exclusively on its personnel.

  • Fourth, close personal contact and teamwork between you and your employees can help to make possible the rendering of personalized individual service. This, as indicated already, is a great competitive advantage. (See our Business Tip No.24)

The methods discussed in this section, as well as in the later ones on "motivation" have become standard practice in the best of the international and local businesses, both small and large.

You may think that you do not have to imitate the large firms, and what is good enough for other small businessmen is good enough for you. If you have a very strong personality, or if you have to contend with very little competition, you may manage fairly well without a modern approach to employee relations. But you will, at best, get mediocre results compared to what you could achieve.

Note: The above information forms part of a complete e-Manual, which covers most of the problems and suggestions in starting and running your own small business.

Our firm is currently offering this FREE "e-Manual" on the subject of "The Pro-Active Management of Employees" which formed the basis of one of the most successful topics offered by the "Small Business Management Course" at the Cape Town Academy. This course, and the lectures, are under the personal supervision of the Director of Training, Geoffrey Hebdon.

For a FREE copy of these notes please contact us


Recommended Additional Research

  • Fundamentals of Management - This streamlined volume covers the principle concepts of management to provide readers with a solid foundation for understanding key issues. Organized around the four traditional functions of management-planning, organizing, leading, and controlling, it reflects current trends in management and organizations, and presents the latest research studies in the field. The authors address managing in today's world, foundations of planning and decision making, basic organization designs, staffing and human resource management, foundations of individual and group behavior, leadership and trust and foundations of control and value chain management. Read this book, Fundamentals of Management: Essential Concepts and Applications (9th Edition) Or visit the Delamere International Bookshop.


  • How to ask the right questions when conducting an interview - Each of the over 1,000 question has been designed and tested by an occupational psychologist. Using these question and the fields they cover helps you better select the right employee. Request the free trial.


  • Start & Manage a Successful Small Business - Our Gold Alliance Group offers effective tools for the new business owner. Learn how to start and manage a successful small or home-based business. Read-up on small business strategy. Sign up for our newsletter to get business strategy articles and updates. These cover the major areas of running a small business. Read more.

  • Evaluate Candidates, Applicant & Prospective Employees - Using our reliable and valid psychological tests assists you to do this in a skillful way. Especially in the past decade with the increase of the average educational level and the oversupply of candidates per professional category, the evaluation of elements such as the ones of: the contestant's emotional intelligence, personality, professional values, decision making ability, esprit de corps and motivation may guarantee success. With the aid of those tests the processes of both personnel recruitment and assessment are enriched in an organization and the company may overcome problems of false judgments, which often result from the Human Resources Manager's subjectivity or the use of non-standard tests. By using Testbiz, both companies and professionals will be able to use scientific tests without having to forbear the insufferable cost for acquiring literary property and also in an irreproachable, objective, manageable and effective way. Reliable, high-quality and valid psychometric evaluation tests for individuals and companies by iTestBiz.com.

  • How to Hire & Manage Employees for the Small Business - If you are a busy entrepreneur, you will benefit from these easy steps to maximize your time managing employees and getting the best out of your people. It is typical for small business owners to assume that they have hired the wrong person when in reality the issue is employee management. This course will provide you with insights that will benefit your hiring process as much as your employee management skills. Learn what it takes to get the best out of people and turn employees into your company champions. Learn powerful insights of the hiring process. Understand how to prepare and deal with new employees. Learn how to create clear expectations and assess performance. Hire and Manage Performance to Build a Great Teamc


  • Management 101 (Teamwork, Goal Setting and Accountability) - The first thing any professional manager should learn is how to coordinate multiple people with effective goal setting, goal management and good communications. This is the basic blocking and tackling of management that makes people accountable, productive and allows them to work well as a team. Unfortunately even companies that think they do MBO (Management by Objective) today often do it wrong, missing key elements of what makes it work that are both subtle and critical. MBO requires process and discipline to do well. An understanding of the psychological principles that MBO leverages is needed to use it properly. Done right the monthly MBO process is the core of all goal setting, communications, team building and even creates the effective brain trust of a team to share expertise and become a high-performance team. MBO will increase morale, create team synergy and even develop people to their full potential. It will also reveal non-performers and naturally eject them. This course covers the necessary components of an MBO process and all the best practices that enhance teamwork, productivity and communications. Management 101 - Teamwork, Goal Setting and Accountability

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