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1. Understand the complexities of hiring, retaining, and terminating employees.
2. Be aware of the laws that apply to businesses of all sizes and specifically to small businesses of certain sizes.
3. Understand outsourcing: what it is; when it is a good idea; and when it is a bad idea.
4. Describe ways to improve office productivity.
The term human resources has been deliberately avoided in this section. This term is more appropriate for large
bureaucratic organizations that tend to view their personnel as a problem to be managed.
Smaller and midsize enterprise personnel, however, are not mere resources to be managed. They
should not be seen as cogs in a machine that are easily replaceable. Rather, they are people to be
cultivated because they are the true lifeblood of the organization.
Many small businesses operate with no employees. The sole proprietor handles the whole
business individually, perhaps with help from family or friends from time to time. Deciding to
hire someone will always be a big leap because there will be an immediate need to worry about
payroll, benefits, unemployment, and numerous other details. [1] A small business that looks to
grow will face the hiring decision again and again, and additional decisions about compensation,
benefits, retention, training, and termination will become necessary. Other issues of concern to
a growing small business or a small business that wants to stay pretty much where it is include
things such as outsourcing, how to enhance and improve productivity, and legal matters.
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