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A STUDY OF PERSONNEL RELATIONS IN NEGRO BUSINESSES • by Vivian Wilson Henderson Chairman Professor Walter L. Daykin A dissertation submitted in partial fulfillment for the requirements for the degree of Doctor of Philosophy in the Department of Labor and Industrial Management in the Graduate College of The State University of Iowa August 1952 ACKNOWLEDGMENT The writer wishes to acknowledge with deep appreciation the kind help, advice and support given to him by Professors Walter L. Daykin and Karl E. Lieb during the preparation of this dis­ sertation. Also the writer deeply appreciates the help of Mr. Emmer Martin Lancaster of the U. S. Department of Commerce who furnished certain materials which have been vital to the study. ii TO My wife, Anna and My Mother and Father ill TABLE OP CONTENTS page Part I Introductory Material .................. 1 Chapter I Introduction....... 2 The Problem 9 Need for Research....... 10 The Objectives.....11 Assumptions ....... 12 Delimitations •........... .. 13 Method of Presentation •••.•••. l£ Definition of Terms...... . 18 Chapter II Background ..... 21 Function and Nature of Business in American Life 2£ Negro Business Before the Civil War .................. 32 The Negro Community and Business Setting.....••••••••.. 38 Part II Personnel Management Concepts and Background of Negro Business Personnel...... I4.8 Chapter III A Concept of Personnel Management ... 2+9 Chapter IV A General View of Negro Business Personnel..... ................... 66 The Operator...... •••••••.... 67 Employees................... 69 Part III Functions of Personnel Management in Terms of Procedures and Practices in Negro Businesses .••••••••••»••••.... 80 General Statement ......... 8l Chapter V Responsibility for Personnel Super­ vision and the Hiring Process ••«... 88 The Personnel Division or Supervisory Component .... 89 The Hiring Process ............ 96 iv page Job Analysis and description .... 96 Recruitment and Sources of Labor Supply ••••••• 102 Sources of Labor Supply......... lOlj. Tapping Sources and Lack of Trained Personnel 110 Chapter VI Other Devices Used in the Hiring Process ...••.... I2I4. The Application Blank ......... 12i| The Interview •••.•••••••••••••.. 127 Testing ..... 129 Job Induction and Follow-up • • •. • lip. Follow-up • • • • ••...••••... II4.3 Record Keeping ..... lli-7 Chapter VII Employee Services ..... 153 Vacations ....................156 Employee Group Insurance Plans... 157 Health Services 160 Sick Leave Plans ..... l6Lj. Chapter VIII Promotion, Transfer and Morale...... 170 Morale •••••••»• •••••• 1714- Chapter IX A Resume.................... 1914- Summary on Findings ....... 19U- General Statement onF indings.... 207 Chapter X Operating Efficiency and Personnel,. 211 Chapter XI A Scientific Approach to Personnel Management in Small Business........ 221 Small Business Problems and Big BusinessP roblems .......... 222 The Growth Factor .... 227 Problems in Integration of Scientific Management in Small Business. ...... 230 The Needs of Small Business; how they Differ from big business..... ... 23I v page Opportunities to Use Scientific Personnel Management .......... 23ij. Use of Consultants .......... 237 Role of Management....... 239 Summary statement on Scientific Personnel Techniques........... 21+1 Part IV Recommendations, Suggestions and Summary .. 21+9 Chapter XII A Further Exploration of.Alternative Scientific Approaches to Personnel Management in Small Business ..... 2J+6 From Within the Organization 21+7 Initial Action ...... 21+7 Making Improvements...•••••»»....• 255 Taking the Cream off the Top...... 255 Further Improvements..,.. 257 From Outside the Organization....... 278 Chapter XIII Summary .... 286 Bibliography ..... ••........ 29l+ vi TABLE OP TABLES page TABLES I Distribution of Courses and Subjects in Business Desired by a Sample of 206 Operators, by Percentage and Rank, Nine Cities ........ 1^3 II Distribution of Types of Business Enterprises Included in a Sample of Eighty- Pour Firms with Total and Average number of Employees ..... 8£ III Percentage of Firms with Provisions for Personnel Supervision ...... 91 IV Percentage Distribution of Devices Used in Hiring Process ....... 98 V Percentage Distribution of Sources of Labor Supply 107 VI Recruiting by Negro Business Pirns in a Sample of Thirteen Colleges and Universities 118 VII Use of the Interview in the Hiring Process • 131 VIII Percentage Distribution of Tests and Testing Procedures in a Sample of Eighty-four Firms • »<,•••»•>»••..... 133 IX Use of Job-Induction and Follow-up in the Employment Process • •••••»■•«•••••••• llj.5> vii page TABLES X Percentage Distribution of Records Kept on Personnel in a Sample of Eighty-four Firms llj.8 XI Percentage Distribution of Employee Services Offered in a Sample of Eighty-four Firms••••*•»**•*-•••-••«•• •• 15>5> XII Promotions and Promotion Policies In a Sample of Eighty-four Firms ••••••» 172 XIII Promotion and Promotion Policies*•••• 17U- XIV Percentage Distribution of Morale Gauges in a Sample of Eighty-four Firms ..... 180 XV Status of Pre-employment Training of Personnel and Training Programs*.• 190 XVI General Information on Personnel Relations Problems and Policies in a Sample of Eighty-four Firms 191 viii As far as I know, there is not one Negro business which has a first class re­ search department. ••••• It is no credit either to the (Negro) colleges or to the business men that there is not one single Negro business department which has specialized in gathering data on Negro business and making it available to all those who need it. Vishnu V. Oak U. S. Department of Commerce, Official Pro­ ceedings of "The Second Conference on the Negro in Business." ix PART I INTRODUCTORY MATERIAL

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