Everything an IC Wanted to Know

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Everything an IC Wanted to Know

• About Starting a Home-Based Business

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Who defines employee or IC status?

• Outlined by common law principles.
• The Fair Labor Standards Act.
• Decisions of some courts.
• The IRS and many states have adopted common law
  principles to define an independent contractor.

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The General Rule

• Independent Contractor
• The general rule is that you, the payer, have the
  right to control or direct only the result of the
  work done by an independent contractor, and not
  the means and methods of accomplishing the result.

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The General Rule

• Employee
• A general rule is that anyone who performs
  services for you is your employee if you can
  control what will be done and how it will be
  done.
• Why is it important to know the difference?

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Because you could find yourself in a real jam
otherwise
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Three Categories of Evidence

• Two Types of Controls
• Behavioral Control to direct and control how
  the worker does the task for which the worker is
  hired
• Financial Control to control the business
  aspects of the workers job

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Three Categories of Evidence

• Thirdly is the type of relationship
• Permanancy of the relationship
• The extent to which services performed are a key
  aspect of the regular business of the company

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Obligations of an IC

• Perform quality work
• Acquire tools and materials
• Meet maximum contractual obligations-production/q
  uality
• Self-insured liability
• Meet responsibilities to the organization-increas
  e the value

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Obligations of Employer

• Sufficient work
• Communication
• Relays expectations
• Feedback on performance
• Opportunity of growth
• Sufficient income
• Sufficient support

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Attitude is everything!

• Dont give that look when communicating

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This Look!
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Add Value to the IC Position

• Quality Product and Service
• Superior Customer Service
• Equals future potential
• Sell yourself and your abilities

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IC is self-employed

• How do you build your business?
• Establish lines of authority
• Improve the efficiency and quality of work
  through synergism
• To improve communication

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Organizational Growth Stages
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Choosing the Right People

• Shoe is on the other foot now
• OJT and education to succeed
• Licensing and contractual agreements
• Charging for your services
• Setting up business processes

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Why is it important to hire the right people?
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Organizing Work Flow Processes

• Without followers you can have no leaders
• Subordinates are not merely passing recipients
  in the process

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Gentle Guidance and Love Go a Long Way
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Power, Authority, and Responsibility

• Formal theory of authority
• Acceptance theory of authority
• Both elements must be present and mutually
  recognized for true structure to exist

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Empowerment

• Accompanying the trend toward more
  decentralization in todays organizations is a
  trend toward increased empowerment of todays
  workforce.

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Principles Based on Authority

• Delegation
• Unity of command
• The scalar principle
• The span of management

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Steps of Delegation Process

• Analyze how you spend your time
• Decide what tasks can be assigned
• Decide who can handle each task
• Delegate the authority
• Create an obligation (responsibility)
• Control the delegation

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Unity of Command

• An employee should have one, and only one,
  immediate manager.

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Scalar Principle or Chain of Command

• Authority in the organization flows through the
  chain of managers one link at a time, ranging
  from the highest to the lowest ranks. This
  principle is based on the need for communication
  and the principle of unity of command.

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Span of Management

• The span of management (also called the span of
  control) refers to the number of subordinates a
  manager can effectively manage.

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Part II Organization Structure

• the framework that defines the boundaries of the
  formal organization and within which the
  organization operates

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Organization Charts

• The organization chart not only identifies
  specific relationships but also provides an
  overall picture of how the entire organization
  fits together.

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Line Structure

• all organizational units are directly involved
  in producing and marketing the organizations
  goods or services

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Simplified Line Structure
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Simplified Line and Staff Structure
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Strategy

• A major part of an organizations strategy for
  attaining its objectives deals with how the
  organization is structured.
• An appropriate structure will not guarantee
  success, but it will enhance the organizations
  chances for success.
• Business leaders, athletic coaches, and military
  leaders all stress that to succeed one must not
  only have a good strategy but also be prepared to
  win (mentally and structurally).

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Work Functions

• Although different terms may be used, most
  organizations have four basic functions
• production
• marketing
• finance
• human resources

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Part III Staffing

• Do you feel that diversity should be a goal of
  the hiring process in organizations?
• What benefits do you think from having diversity
  as a goal in hiring?
• What different ideas or viewpoints have you
  gained from a person or persons from a different
  cultural background?

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Human Resource Planning (HRP)

• Once a needs assessment has been performed,
  follow with HRP in order to
• plan for and find the right number of qualified
  people into the right job at the right time.

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Skills Inventory

• Consolidates information about the organizations
  current human resources.
• The skills inventory gains basic information
  about each person of the organization, providing
  a comprehensive picture of the individual.
• Through analyzing the skills inventory, the
  organization can assess the current quantity and
  quality of its human resources.

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Job Analysis and Skills Inventory

• Job analysis is the process of determining,
  through observation and study, the pertinent
  information relating to the nature of a specific
  job. The end products of a job analysis are a job
  description and a job specification.

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Job Description

• A written statement that identifies the tasks,
  duties, activities, and performance results
  required in a particular job.

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Job Specification

• A written statement that identifies the
  abilities, skills, traits, or attributes
  necessary for successful performance in a
  particular job.

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Transition

• In the final phase of human resource planning,
  the transition, the organization determines how
  it can obtain the quantity and quality of human
  resources it needs to meet its objectives as
  reflected by the human resource forecast.

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Transitional Activities

• recruiting and selecting new employees
• developing current or new employees
• promoting or transferring employees
• laying off employees
• discharging employees

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Most of all, do what you love

• This is what life is all about. Take a moment to
  stop and smell the flowers, hear the birds
  chirping, and love every aspect of your life.