The primary goal of the Human Resources Department is to match the best person to the job in the company. This maximizes both effectiveness and efficiency for the company. In order to achieve the best matching of resources to the positions in the company, the human resources director should develop a position profile. This profile identifies the job title, describes the job in detail, pinpoints the best hours of work, defines the duties, and sets out the skills needed to perform the job. By referring to the position profile during the application process, the company can hire the best person for the job.
Position profiles are often misused with the term ‘job description’. In actuality, the job description is an element of the position profile. The position profile encompasses much more. Remember, the key is to maximize effectiveness and efficiency of the position. Effectiveness comes with performing the job at the right time (time frame), performing the correct duties and having the right set of skills to fulfill the requirements of the job. A job description is no more than a narrative of what is involved in the job itself, i.e. an explanation of what happens.
When the human resources director prepares the human resources manual, one of the sections of the manual is the Position Profiles. It is here where every position in the company is identified and a profile is developed. The goal is to hire or train someone to fulfill that position within the organization. From the head guy right on down to the most tedious functions, all positions should have a profile developed. This allows interviewers to match the best candidates to the job at hand.
One of the key components of the position profile is identifying the personality type that best fulfills the position. This is customarily found in the skills section of the profile. There are various tools or tests to confirm the personality of the candidate to the personality type needed. However, this takes more time and resources to fully qualify potential applicants. Therefore it is best to identify those applicants that meet all the other criteria before spending the resources to test for the best personality to fit the position profile. Many organizations use outside psychological testing services to score the potential applicants.
During the interviewing process, your assessors should have an understanding of the position profile before meeting with applicants. By gaining an understanding of the position and all the requirements, they can identify the best candidate for the position.
By documenting a position profile, job applicants can fully understand what the job entails, what is expected of them, and what role they play in the company. During performance reviews, all employees should be reminded of their respective position profile. Then performance should be gauged against the position profile and not some arbitrary set of guidelines.
As the small business owner it is up to you to make sure these profiles are developed and documented. By having a well written profile, you can truly evaluate the staff and the company. If some position is no longer needed or has diminishing return; modify the profile and either train the existing employee to fulfill the new role or hire someone new. Remember, this is about matching human resources to the needs of the company to maximize the overall production of the organization. Act on Knowledge.
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Then learn about Value Investing. Value investing in the simplest of terms means to buy low and sell high. Value investing is defined as a systematic process of buying high quality stock at an undervalued market price quantified by intrinsic value and justified via financial analysis; then selling the stock in a timely manner upon market price recovery.
There are four key principles used with value investing. Each is required. They are:
- Risk Reduction – Buy only high quality stocks;
- Intrinsic Value – The underlying assets and operations are of good quality and performance;
- Financial Analysis – Use core financial information, business ratios and key performance indicators to create a high level of confidence that recovery is just a matter of time;
- Patience – Allow time to work for the investor.
If you are interested in learning more, go to the Membership Program page under Value Investing section in the header above.
Join the value investing club and learn about value investing and how you can easily acquire similar results with your investment fund. Upon joining, you’ll receive the book Value Investing with Business Ratios, a reference guide used with all the decision models you build. Each member goes through three distinct phases:
- Education – Introduction to value investing along with terminology used are explained. Key principles of value investing are covered via a series of lessons and tutorials.
- Development – Members are taught how pools of investments are developed by first learning about financial metrics and how to read financial statements. The member then uses existing models to grasp the core understanding of developing buy/sell triggers for high quality stocks.
- Sophistication – Most members reach this phase of understanding after about six months. Many members create their own pools of investments and share with others their knowledge. Members are introduced to more sophisticated types of investments and how to use them to reduce risk and improve, via leverage, overall returns for their value investment pools.
Each week, you receive an e-mail with a full update on the pools. Follow along as the Investment Fund grows. Start investing with confidence from what you learn. Create your own fund and over time, accumulate wealth. Joining entitles you to the following:
- Lessons about value investing and the principles involved;
- Free webinars from the author following up the lessons;
- Charts, graphs, tutorials, templates and resources to use when you create your own pool;
- Access to existing pools and their respective data models along with buy/sell triggers;
- Follow along with the investment fund and its weekly updates;
- White papers addressing financial principles and proper interpretation methods; AND
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