14 ISSUES & ATTITUDES

AFFECTING EMPLOYEES'  PERFORMANCE

 

This is an excellent comprehensive list I saw recently in an old Human Resources textbook. It helps tell the story of what motivates employees, what's important to them and what can contribute to turnover in a company.

1. Job Demands - Includes work pressure, fatigue, boredom, and work load. 
2. Working Conditions - Includes equipment adequacy, safety, and annoyances.  
3. Pay - Adequacy, compared to competing firms and administration of pay.
4. Employee benefits - Benefits offered and how they are administered.
5. Friendliness, cooperation of fellow employees - Includes friction and bossiness.
6. Supervisor-employee interpersonal relations - Includes fairness, friendliness, treatment of suggestions, follow-through on promises.
7. Confidence in management - The belief in management's integrity and concern for their employee's welfare.
8. Technical competence of supervision - Includes decision making, administrative skill, work organization and ability to train employees
9. Effectiveness of administration - Includes cooperation among departments, efficiency of company operations and confidence in higher levels of management.
10. Adequacy of communication - Includes complaint-handling, freedom to express opinions and suggest improvements, and providing information about future plans.
11. Security of job and work relations - Includes security from arbitrary discharge and recognition of length of service. 
12. Status and recognition - Includes standing with the company and respect for judgment. 
13. Identification with the company - Pride in the company and a sense of belonging in the company.
14. Opportunity for growth and advancement - Includes the opportunity to develop one's skills and get ahead in the organization.

*Used under the Fair Use Rules of the U.S. Copyright Law. From the book, "Managing Human Resources", pg. 537 by Herbert J. Chruden and Arthur W. Sherman, Jr. Published by South-Western Publishing Co. The book reprinted this information from "Administration and Interpretation of the SRA Attitude Survey by Science Research Associates, Inc.

28 SIGNS & SYMPTOMS OF AN UNPLEASANT WORK ENVIRONMENT!

Just happening to be thinking the other day and I thought I would do a "brain dump" of some of the negative work issues that increase employee dissatisfaction and turnover.

So here are some of my thoughts:

• Touchy management & co-workers. Co-worker insulted if another employee uses, albeit rarely, their garbage can, if it's convenient.
• "Getting along" is valued over hard work, despite assurances to the contrary.
• Cliquey company culture.
• Atmosphere of disrespect for religious beliefs 
• Management unwilling to work with an employee dealing with loss, grief, marital distress, etc.
• Tattle-tale employees
• Hyper-sensitive co-workers and management
• Snappy co-workers or management
• Micro-managing management
• No opportunity for growth, advancement or challenge
• No sense of being appreciated
• Double standards in rewards, discipline, recognition, handling complaints, etc.
• Management doesn't listen to concerns. Input is unwelcome.
• Discrimination. Not just against politically-correct groups but men, Christians, hard workers, political beliefs/views, etc.
• Diversity messages that become Orwellian, i.e. not all groups are are part of the "diversity".
• Mountains are made out of molehills
• Unforgiving culture. Can move on from conflict.
• Unclear directions or expectations.
• Backbiting and gossipy co-workers
• Petty co-workers or management
• "Do as I say and not as I do" culture
• Frustration with management's "my way or the highway' attitude.
• Co-workers with offensive habits like burping.
• Too many chiefs. Procedures are not followed uniformly by different supervisors.
• Impossible demands, or at least in terms of compensation paid.        
• Expectations are not communicated. staff has to "read minds."
• Diligence and excellence are not appreciated, even mocked.
• Ever increasing demands without appreciation or rewards.
  

Bidding 101

BIDDING 101

Construction firms are faced with the task of how to bid a job almost immediately.

So how do you bid a job?

Basically, a construction job should be based on your needs/goals for:

• Labor - Compensation for yourself (what you would be paid as an employee for your work as a contractor) and employees. Also, don't forget to include sub-contract labor, as well.,
• Overhead expenses to cover your non-job related business expenses like the employer's share of FICA taxes, administrative staff expenses, office supplies/utilities, internet/phone charges, advertising & marketing, insurance, office rent, vehicle expenses, etc.,
• Materials costs and other job-related costs like renting tools or equipment, and
• Profit, which is designed to recoup your investments in fixed assets and to provide a return on the use of your capital in your small business.

I would recommend arriving at a type of billing rate to cover your direct labor for the job, the overhead and profit. Remember, to divide by the anticipated number of hours worked on jobs for the chosen period, not the total number of hours worked! This billing rate will be multiplied by your estimate hours for the job plus direct materials and other job-related costs. The bill rate can be used for all jobs unless there are significant changes to direct labor, overhead and the desired and realistic profit estimated. Unlike professionals, who use their billing rate when quoting rates to clients, a construction company can and often should use more discretion.

Also, a range of "billing rates" can be used from a ceiling to a floor. The floor rate may be used on a short-term basis to get experience and cover costs in lean times while the ceiling rate is at your premium rate for work you like and do the best!

Then after bidding a job, it is important to "check" that against what the market will bear and also your billing process will likely need to be tweaked after you determine if you are getting jobs too easily or if you aren't getting any. Your costs may frankly be too high, your estimate of expenses could be wrong or profit may be too fat or thin.

A few resources to help are:

• The Contractor's Group at www.thecontractorsgroup/lets_start_bidding.htm
• A solid, but short guide on submitting a construction bid can be found at www.wikihow.com/Write-a-Construction-Bid.

IS DIVERSITY IN THE WORKPLACE REALLY DIVERSE?

The "dog days" of summer, 2015 version! My basset hound isn't her normal bubbly self on a 97 degree day. Also, this summer, the political scene has been shaken up with the candidacy of Donald Trump, Billionaire Extraordinaire on the GOP side.

"The Donald" has been "telling it like it is". I, for one, have been refreshed by his "in-your-face" bold, often politically incorrect, statements on a host of issues! That is what freedom is supposed to look like!

Along that wavelength, I thought I would take a shot at the prevailing wisdom about diversity in the workplace these days.

It seems that in American society in general and, "big time" in corporate America that diversity is quite the "buzz word"! Diversity of skin color is in (especially if you aren't white), diversity of sexual orientation (homosexuality seems to be a ultra preferred status while those who disagree are castigated. Diversity??), and being a woman is typically preferable to being a man.  The emotionalism needed to succeed in a heterosexual dating or marital relationship seems to be in the work place, as well. Except that, I've noticed if men are sensitive they are often mocked or belittled for being babies. The "drama" I see in the workplace and society in general (thanks go largely to you, ladies) is getting quite ridiculous.

Quite politically incorrect, I know! I will stand in "The Donald's" draft for a bit of cover, haha!

Nonetheless, as a consultant, embracing a contrarian perspective, I thought I needed to share.

Ironically, diversity of viewpoints seems to be getting a "bad wrap" in today's American society. For example, holding that human-caused climate change may be suspect. Or that the Confederate flag, while offensive to many as racist, may still be seen rationally by others as an historical symbol. Just a few views that are not greeted with the same respect for diversity, of opinion that is.

The problem is, that in solving real-world problems, "out-of-the-box" views or perspectives are sometimes required in business and management problems. If folks are stifled by political correctness, such solutions may be ignored or not given the light of day! So, lighten up America! True diversity should include different emotions, viewpoints and beliefs, even the politically incorrect ones!

"KEY SUCCESS FACTORS

OF MILLIONAIRES" *

· CREATIVE INTELLIGENCE - Includes seeing opportunities others do not see, finding a profitable niche, specializing, and loving your career or business.

· INTEGRITY AND MORAL VALUES - Includes being honest with all people, having a supportive spouse, and having strong religious faith.

· INTELLECTUAL ORIENTATION - Includes having a high IQ/superior intellect, attending a top-rated college, and graduating near/at the top of one's class.

· INVESTING: THE STOCK MARKET OR ONE'S OWN BUSINESS - Includes investing in the equities of public corporations, having excellent investment advisers, making wise investments, investing in my own business, being my own boss, willing to take financial risk given the right return, and living below one's means.

· LUCK VS. DISCIPLINE - Includes being lucky, being well disciplined, being very well organized, and working harder than most people.

Ecclesiastes 9:10 NIV, "Whatever your hand finds to do, do it with all your might, for in the grave, where you are going, there is neither working nor planning nor knowledge nor wisdom." 

· ORIENTATION TOWARD CRITICS - Includes ignoring the criticism of detractors, having a competitive spirit or personality, having the urge to be well respected, having extraordinary energy, and being physically fit.

· SOCIAL SKILLS - Includes getting along with people; having strong leadership qualities; having an ability to sell your ideas, products, etc.; and having good mentors.

 

* These success factors are based on a survey of 733 millionaires by Thomas J. Stanley, Ph.D., in his book, The Millionaire Mind (pg. 61-65). This brief excerpt was used in accordance with the "Fair Use" exemption to the U.S. copyright law.

THE PROBLEM OF THE "TECHNICIAN" BUSINESS!

Reputations are built on a business that does excellent work! The carpenter whose fine crafstmanship wonders customers, the accountant that finds every last deduction worth finding or the lawyer whose counsel is like the wisdom of Solomon. Perhaps, it seems that's all you need to build a successful business.

Actually, there is more..fundamentally a business involves risk so you have to have an entrepreneurial bent in your bones. Also, systems need to be in place and the business needs to be organized, as well, just to name a few!  Three hats, famous author Michael Gerber says, are needed in his classic book, "The E-Myth." 

Not everyone possesses all three hats in equal amounts, but it's important to keep in mind that all three are needed!

Some of the problems of building a business on technical skill alone, include:

• Lost sales can result from not taking advantage of new opportunities for growth or perhaps in not being organized enough to meet the time pressures of customers 
• Poor decisions can result from such a business, if accounting records are neglected. You may be popular but not profitable. If your eyes see a regularly-prepared income statement or statement of cash flows, operational problems would be seen before they become disasters. A budget would reveal the need for a coming cash flow crunch!
• Without a strategic look ahead at environmental threats like zoning issues or lost suppliers, business could come to a halt. One concrete contractor had to dump concrete rubble from clients and the city dump wasn't a cost-effective option. A major sand/ gravel operator and highway contractor suddenly closed its grounds to dumping, turning the disposal of this rubble into a sudden crisis. Without thinking ahead or doing some problem solving, this problem could kill or seriously hamper such a business!
• High employee turnover! The technician business is typically dominated by a demanding technician, or so it would seem. Such a person is sometimes unwilling to see the need to be a manager. Managers delegate! Technicians produce! The problem becomes obvious! Good people don't like to be continually second-guessed on how they ring out a rag, spread chlorine over a swimming pool, use a Skil-Saw, how or whether they consult the Internal Revenue Code, or what they pay for a used car. 
• If a technician does have to become a manager or CEO of a growing company, quality can suffer because training is not always a priority for the newly hired techs! They are often told to jump in and do the work because the owner doesn't like, or have the patience, to train!
• Producers can be passive procrastinators about other aspects of the business, since human nature often avoids what we aren't good at!

SIX TRENDS OF NOTE IN 2014

Central to the mission at O'Hara Business Strategies, are "strategies."  Analyzing and identifying trends facing leaders, businesses and other organizations is indeed part of a strategic approach. Trends are typically organized as:

• Political,
• Economic,
• Social & Demographic, 
• Spiritual, and 
• Technological.

One of my 2014 favorited Twitter tweets, addressed a major technological and economic trend, cloud-based computing (and mobile computing), "In 2014, cloud-based computing grew as a key technology trend. For example, Salesforce.com. a pioneer in cloud computing, used the "No Software" symbol boldly!"  Cloud-based computing offered the benefit of avoiding the computer crashes possible with a home desktop computer, as well as allowing access to songs, files and sales presentations, on the go.

Five more key 2014 trends included:
1) The GOP won big in November's mid-term elections, taking control of the U.S. Senate. However, President Obama was unfazed, seeming to double down with executive actions on immigration and toward normalizing relations with Cuba. Similarly, "gay" marriage bans, largely enacted by popular vote, across the USA have fallen like dominoes. Objectively, a curious inconsistency appeared in American politics in 2014. The rule of law, the will of the American people and a Judeo-Christian worldview appeared to be taking a back seat to an increasingly powerful executive branch in Washington, D.C. and un-elected judges, with an aggressively secular worldview.  
2) Radical, violent Islam advanced around the world with Isis in Syria/Iraq, the Taliban's resurgence in Afghanistan, and renewed terrorist attacks, beheadings and kidnappings in Great Britain, the USA, Israel and Nigeria.
3) Widespread protests vs. perceived police abuse occurred despite objective, grand jury evidence to the contrary. These events illustrated an increasing hostility to the rule of law or the police, in general. Although, police abuse can occur! These protests along with "gay marriage" ban reversals and the rise of NDOs (Non-Discrimination Ordinances) across the country are evidence of changing values in the USA. Some may even consider such events to show the rise of privileged groups in America! 
4) On a global basis, the IMF apparently calculated that China would have the world's largest economy by year's end, ousting the USA from the #1 position it has held since Ulysses S. Grant was President in the 1870s. Also, Russia, despite being bruised by declining oil prices by year's end, sought to increase its military influence earlier in 2014. Also, the USA seemed to be appeasing enemies like Iran (in nuclear talks) and North Korea (by not providing strong gov't support to Sony after being cyber-attacked due to the satirical movie, "The Interview") while increasing hostility toward long-time ally, Israel for settlement activity. These events added to the sense that America's influence was waning globally!
5) Oil prices dropped to less than $60/barrel late in 2014, stressing nations like Russia and Venezuela and American oil producers in Texas and North Dakota. However, the price breaks were welcome news to American consumers. as well as energy importers like China and India. What will be the impact in 2015? Could be interesting!

6 KEY BENEFITS OF BUILDING SYSTEMS by Dave Lavinsky of the Growthink Blog with additional thoughts by  Daniel O'Hara added in italics. Used under the Fair Use Rules of the U.S. Copyright Law. Written by Dave Lavinsky on Thursday, February 10, 2011 ***Please read Mr. Lavinsky's full article using the link at the end of this positing. This was an excellent article on the benefits of building systems. Mr. Lavinsky, of the Growthink blog, used the illustration of building a system for what may seem to be the most mundane of tasks, "how to handle inbound phone calls." Lavinsky showed the benefits of systems, even for answering the phone with these 6 benefits: 1) Creating the system forces you to think through the  process and improve it. The "simple" phone answering system addresses key questions, some of the questions he noted included: * What customer information should you collect when they call (e.g., name, email address, etc.)? * Where should this information be inputted (e.g.., CRM,  database, forms)? * What other questions should be asked of the customer? * Under what circumstances should the customer be transferred to someone else? To whom should the caller be transferred under various situations? * How many times should the phone ring before it goes to voice mail? * What should the voice mail message(s) say? * What message should the listener hear when waiting for either a live person or voice mail? A concentration of effort in one area, causes brainstorming about issues that need to be considered. As you can see, when you focus on this one activity, you are forced to really think through the issue and make the best decisions. Interesting...it's important to note that if one company felt it was worthwhile to to invest the time and resources to have a  "phone answering system", it drives the point home even  more about the necessity of having a solid accounting  or marketing system in place, in a business.  2. Having the system in place allows for improved and  consistent performance.  One of the results of the system development process is creating flowcharts that show each piece of the system. These flowcharts are given to all the relevant employees and posted on their walls. This allows all the employees to follow the proper procedures, giving your company consistent, high-quality performance on the relevant tasks. Michael Gerber makes the same point in his book, "The E-Myth" about developing business systems. Additionally, training is made more consistent, veteran employees continually need to "stay on their toes" and not rest on years of experience, and new employees have an  approved "cookbook", a guide to follow rather than relying on the hearsay of others.  3. Having the system in place allows you to quickly integrate new hires into your business. Likewise, the system and flowcharts make it very easy for new hires to see their place and roles within the organization and hit the ground running. Putting a dollar value on this benefit of systems is, in and of itself, a powerful benefit of making the investment! 4. Having the system in place allows you to easily come  up with and implement new ideas. Once you have the system flowchart, it's very easy to come up with new ideas. Ideas like "What if we bypass this activity and go straight to this other action?" become common. And implementing these ideas is simple since you can easily pinpoint which elements in the flowchart are affected. 5. Having the system allows you the entrepreneur/ manager/owner/etc. to a) take more time off, and/or b)  spend more time on higher value-added activities. Creating systems is classic "working on" versus "working in" your business, another reference to Michael Gerber's book, "The E-Myth." Once the systems are created and in place, the activities are performed nearly on auto-pilot. You don't have to waste time and energy in performing and/or actively managing them. I have to respectfully disagree with Mr. Lavinsky here. Systems are great but it is highly possible for a manager to  ignore or circumvert them! They don't run on auto-pilot! Years ago, working at a franchise restaurant, the  dishwashing and food storage procedures omitted proscribed corporate steps.When the corporate inspector  arrived, things got tricky!  6. Having systems dramatically increases the equity  value of your business. Once your company has lots of systems in place, it instantly becomes much more valuable to an acquirer. That's because the acquirer knows your business will run smoothly after acquisition. If you have a small business this is an excellent point!  Sometimes selling the benefits of systems to a buyer may be necessary.  A business buyer also knows that new hires can quickly be added into the system so they can expand your business quickly. Furthermore, the systems you developed could help the acquirer expand their own business. So, you need to start thinking about every key aspect of your business as a system. For example, do you have a system for your internet marketing? Do you have landing pages designed to maximize conversions? Do you have a system to test these pages frequently? Do you have follow-up email campaigns in place based on actions customers take online? Etc. Etc. And do you have sales systems? Do you have an established process to handle new leads? To build rapport? Etc. And what about HR systems, and production systems, etc. While building systems takes time and often does not immediately put cash in your pocket, the six key benefits noted above will pay for themselves over and over again and are definitely worth doing. So start systematizing your business today.

Source:
Article by Dave Lavinsky at
www.growthink.com/content/6-key-benefits-building-systems

GREAT COACHING QUOTES

FOR SMALL BUSINESSES

"...the quickly growing wave of coaching relationships that are helping small-business owners improve their business skills, recalibrate their approaches to management, and, often, totally reboot and re-balance themselves as leaders on the job and in the home and community."
Dale D. Bliss, Nation's Business

"Most leaders like executive coaching because: they receive direct one-on-one assistance from someone they respect; they don't have to leave their offices; it fits their time frames and schedules; they can see fast results, if they're dedicated." Training & Development.

“Bob Wright, an executive coach, says his clients are needing him even more during the downturn, tough times are a great opportunity for those businesses who can make the hard, right decisions during difficult transition and adjustment periods and that's what coaching is all about, learning how to change and grow.”

Management Today

"Iron sharpens iron, So one man sharpens another."

Proverbs 27:17 NASB

"It's not comfortable to have someone constantly telling you how you can be better. But it's very hard to get better on your own."

David S. Pottruck, co-CEO of Charles Schwab & Co.

"Once used to bolster troubled staffers, coaching now is part of the standard leadership development training for elite executives and talented up-and-comers at IBM, Motorola, J.P. Morgan, Chase, and Hewlett Packard. These companies are discreetly giving their best prospects what star athletes have long had: a trusted adviser to help reach their goals."
CNN.com, 5/28/2001

“I absolutely believe that people, unless coached, never reach their maximum capabilities”

Bob Nardelli, CEO, Home Depot

“Coaching simply speeds up a process of change that would most likely occur anyway if an individual had enough time. Without a coaching program that forces a client to focus and make time, people sometimes miss the real issues they need to focus on.”

The Ivy Business Journal, September-October 2000.

“I'll bet most of the companies that are in life-or-death battles got into that kind of trouble because they didn't pay enough attention to developing their leaders.”

Wayne Calloway, Chairman, Pepsico Inc.

"A plan in the heart of a man is like deep water, But a man of understanding draws it out."
Proverbs 20:5 NASB

*Source of some quotes from www.sam101.com, a Coachville web site. Used under the Fair Use Rules of the U.S. Copyright Law.

SELECTING THE OPTIMAL BUSINESS ENTITY FORM....

Selecting the best form of business is a key business decision, that should be considered thoughtfully and with professional advice. O'Hara Business Strategies would be happy to help you walk through this process whether starting a new business or at a point of transition.

The following seven general areas of concern should be considered when selecting the right entity:

ELECTIONS / REGULATIONS - The S Corporation requires federal election on Form 2553. Other entities are governed. created by state statute. Depending on elections made by a limited liability company (LLC) and the number of members, the IRS will treat an LLC either as a corporation, partnership, or as part of the owner’s tax return (a disregarded entity”).  See the following link for more information on IRS elections for LLCs:
http://www.irs.gov/Individuals/Self-Employed/LLC-Filing-as-a-Corporation-or-Partnership

CAPITALIZATION
The amount of capital that can be raised varies among the business entities. A sole proprietorship is limited to capital infusions and debt raised by the owner. Partnerships are the same except that the pool of capital is increased by the number and capability of the partners. Corporations offer still more options including selling stock or issuing bonds.

ADMINISTRATIVE BURDEN
As far as administrative burden, the least burden generally falls to a proprietorship while corporations have the greatest burden. Corporations have to file an articles of incorporation, they need by-laws, file tax returns distinct from the shareholders, hold annual meetings and so forth. Partnerships also can be complex due to the potential for disagreement among partners and the need to plan for a partner's death or withdrawl from the partnership.

LIABILITY
For liability considerations, a sole proprietorship's owner is responsible for the business' liabilities while a LLC, S corporation and corporation limit such liability. In a general partnership, each partner can bind the partnership and the other partners by his/her actions so it can be riskier, from a liability perspective, than a proprietorship.

MANAGEMENT/ CONTROL
Proprietorships again offer simplicity, flexibility and control. However, they are limited in terms of management resources to the skills/ abilities of the owner. Partnerships and corporations, by their increased numbers involved in management, offer more expertise. However, the downside is the potential for increased strife among partners or shareholders.

CONTINUITY & TRANSFERABILITY OF OWNERSHIP
Proprietorships are not a legal entity so they don't continue after the death of the owner. The assets of the business, not the business itself, are then sold. Partnerships are also of limited duration and it is dissolves upon the death or withdrawl of a partner. Corporations, a legal entity, have an indefinite life. Transferability is, in theory possible, but in practice it may be limited due to a lack of a ready market for willing new shareholders.

TAX CONSIDERATIONS
There are a variety of tax issues that come into play when choosing a legal form of entity such as compensation, self-employment tax, taxable years, tax rates and fringe benefits.  One issue in particular, as an example, is that all net income is treated as compensation for a proprietor and subject to self-employment tax. The limited liability company has gained favor recently. However, it should be noted that compared to an S corporation, the LLC also requires net income from the business to pass through as compensation, making all net income subject to self-employment tax. On the other hand, in a S corp, a reasonable amount of net income must be considered compensation to shareholders involved in management, and subject to self-income tax, but the remaining net income is passed through to the owner's Schedule E, not subject to self-employment tax.

Again, the choice of a legal entity can be complex. O'Hara Business Strategies would be glad to help in this area!