Discussion Questions on Human Resources Management - Paper Example

Paper Type:  Essay
Pages:  4
Wordcount:  1091 Words
Date:  2021-06-11
Categories: 

What is performance appraisal? What are the most common mistakes managers make in performance appraisals? What should small business managers do to avoid making those mistakes?

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Performance appraisal refers to the systematic evaluation of the employees performance and the understanding of the different abilities an individual possesses towards further growth and development. There are common mistakes made by several managers when handling performance appraisals and among such mistakes include: confusing the aspect of excellence with growth, unconscious bias, attitude evaluation (which should not be included), implementing unsubstantial rating scales and neglecting the need to follow through. In order to curb the occurrence of such mistakes, there are several measures managers can be able to put in place and among such measures include: ensuring the implementation of fully functional adjustable rating scales, avoid any form of bias, develop a benchmarking culture for the managers so that they can learn more from other organizations and ensure that they follow through and try to reach out to their employees regarding their performance.

Is money the best motivator? How do pay-for performance compensation systems work? What other rewards are available to small business managers to use as motivators? How effective are they?

Well it is needless to say that money is not the only motivator but it actually performs as the best motivator of people in a working environment. Pay for performance systems are formal compensation systems directly linked to organizational or individual performance which will be linked to a running effective performance evaluation system. Apart from money, there are other motivators for employees and they include: Recognition awards (such as Awards and Performance certificates in front of peers, Dinners with CEO or Board, New office), Rewards (such as vouchers, gift cards, paid parking) and Opportunities (such as being made a team leader, Promotions, mentorship programs). Such motivators prove to be effective as some include the ability to enrich an individuals career.

Discuss the complexities involved in interviewing and when empowerment works best.

There are several complexities linked to the interview processes. Such include: prediction of future by use of historical information, interview questions that may not be directly related to the needed skills, inconsistency in questions, the no agreement no good answer myth, having the interviewees providing answers they believe the interviewer wants to hear rather than being straight and honest. Empowerment, being a strong tool to motivation, works best when clearly fused by the different scenarios such as personal traits (of the employee) and the current responsibility or position.

What role do commercial banks play in providing debt financing to small businesses? Outline and briefly describe the major types of short-term, intermediate, and long-term loans commercial banks offer.

Commercial provide quite a number of different aid based on debt financing to small businesses. Relatively they are charged with various roles which include credit creation, ensure the businesss economic growth and social stability. There are different types of loans offered by these banks, ranging from short-term, intermediate to long-term.

Short-term loans include:

Trade credit- operation that allows for a firm to collect its supplies or goods from other firms on credit and record the debt as an account payable.

Commercial bank loans- the banks lending appears on the balance sheet as notes payable. It is quite close to the trade credit.

Commercial paper- it composes the well developed promissory notes belonging to a firm that are sold to other businesses, insurance companies, banks or pension funds.

Intermediate loans;

Term loans- it is a business credit with a maturity not less than 1 year but not more than 15 years.

Conditional sales contracts

Lease financing- it is no longer considered necessary to make purchases on assets in order to use them.

Long-term loans:

Bonds- long-term capital can be provided by either borrowing or provision of stock

Long-term debt- includes mortgage bonds, debentures.

Stock- equity financing can be achieved through common and preferred stock.

What is a FACTOR? How does the typical FACTOR operate? Explain the advantages and the disadvantages of factoring. What kinds of businesses typically use factors?

Factor can be referred to a company who purchases accounts receivables before their due date at a price that is discounted. It works in ways where the firm sells its invoices or receivables to a third party financial company. The factor company will then collect payments on these invoices from the businesss customers. Companies and businesses of all sizes can factor. There are many advantages and disadvantages involved with factoring: they include:

Advantages;

Aids in smoothening the cash flow.

Some customers will pay quickly.

Quick release of funds.

Improve excellence in developed strategies.

Disadvantages:

It will cause a reduction in profit margin.

Reduce scope of borrowing.

Factors restrict funding especially against poor debtors.

What types of businesses are most likely to attract venture capital? What investment criteria do venture capitalists use when screening potential businesses? How do these compare to the typical angels criteria?

The following businesses readily attract venture capitalists: businesses with outstanding ideas and with high barriers to entry: businesses that have set up a compelling value proposition: business that possess market traction: business that set up an attractive team. The venture capitalists use particular set of criteria in deciding the businesses to venture into. Such criteria include: the venture capital needs; traits of the proposal; traits of the owner or team as a whole; nature of the proposed business; economic set up around the proposed business; strategy of the proposed business. In comparison to the Angels criteria, they are much similar in quite a number ways.

What is an angel investor? Assemble a brief profile of the typical private investor. How can entrepreneurs locate potential angels to invest in their businesses?

An angel investor is considered an influential person who provides capital for a business start-up mostly in exchange for ownership equity. A typical profile of a private investor will include;

The investor being typically around the age of mid forties with a net worth of around 500,000.

Makes investments close to home.

Most are willing to provide loan guarantees to the small business investment.

The very basic and efficient way of locating potential angel investors is through the development of a network with investment and financial institutions, business associations and other business owners.

Works Cited

BIBLIOGRAPHY managementstudyguide. (n.d.). Perfomance appraisal. Retrieved March 19, 2017, from http://www.managementstudyguide.com

plum. (2014, July 24). non financial incentives for employees. Retrieved March 19, 2017, from http://www.plum.io/non-financial-incentives-employees

UKEssays. (2015, March 23). Money is the biggest motivator commerce essay. Retrieved March 19, 2017, from http://www.ukessays.com/essays/commerce/money-is-the-biggest-motivator-commerce-essays.php

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Discussion Questions on Human Resources Management - Paper Example. (2021, Jun 11). Retrieved from https://midtermguru.com/essays/discussion-questions-on-human-resources-management-paper-example

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