netrashetty
Netra Shetty
The Federal National Mortgage Association (FNMA) (OTCBB: FNMA), commonly known as Fannie Mae, was founded in 1938 during the Great Depression as part of the New Deal, but was set up as a stockholder-owned corporation chartered by Congress in 1968 as a government-sponsored enterprise (GSE). The corporation's purpose is to expand the secondary mortgage market by securitizing mortgages in the form of mortgage-backed securities (MBS),[3] allowing lenders to reinvest their assets into more lending and in effect increasing the number of lenders in the mortgage market by reducing the reliance on thrifts.
gimmicks or other simple solutions. Trust cannot be created by excessive wages, great company
picnics or wonderful working conditions; it can only be generated through teamwork, honesty and
fairness. Although trust and productivity are complex issues and represent only part of the total
fabric of interpersonal relationships in small businesses, three attributes appear to have a positive
effect on trust in successful small businesses:
!
!
!
The owner-manager of the small business is open and honest about the day-to-day
business operations.
The owner-manager of the small business is consistent and fair about personnel
policies.
The owner-manager spends a great deal of his or her time concentrating on good
communications with those working in the firm.
Honesty
Secrecy breeds suspicion. Whenever information is kept on close hold, the context becomes open to
misinterpretation. Total quality improvement is based on the concept that workers care as much
about the success of the small business as the owners do. Studies of small businesses indicate that
employees tend to overestimate profits by substantial amounts. These same studies indicate that
when true financial information is shared with employees, substantial cost controls are voluntarily
initiated by all members of the work force.
Whenever in doubt concerning the amount of information to share with employees, experience
indicates that too much is better than not enough. Never lie to workers about human relations issues.
Institutional memory is long term; any deceit will be remembered for many years. Note that
employees talk with each other and inconsistencies will be quickly detected and brought to the
surface -- frequently to your embarrassment. The following are suggestions on how to avoid this
dilemma:
!
!
!
Take time to talk with your workers.
Find out what they're thinking.
Find out what they'd like to know and tell them whenever possible.
!
!
Don't tell only good things.
Allow employees an opportunity to provide you, the owner, with information,
questions and suggestions. In this way, communications are two way.
Fairness
Fairness ranges from consistency in personnel actions and fair market practices to adherence to the
various laws governing the workplace. The concept of due process requires that a small business
follow its own rules and policies. Employees must be treated the same when it comes to personnel
issues.
Each worker should have an equal chance to perform at his or her best. Decisions concerning
rewards, promotions and advancement should always be based on performance, and good
performance should be spelled out in the job description. When performance is equal among
employees, seniority should be used to break ties.
The key to healthy work relations is managing communications within the firm. Most of the
communication will flow as orders and instructions to employees. Nevertheless, communicating
(and honesty and fairness) is a two-way process. It is difficult for employees to be intelligent and
enthusiastic teamworkers if they do not know the reasons behind orders and instructions. Perhaps
even more important is giving employees the opportunity to contribute ideas and opinions before the
manager-owner makes a decision. This adds dignity and meaning to the job in the eyes of most
employees and their families.
Communicating includes telling employees where they stand, how the business is doing and what
future plans are being developed. Negative feedback may be necessary at times, but positive
feedback should be the primary tool for establishing good human relations. Never forget that
employees are people, and that they will quickly detect insincerity. They also will respond to honest
efforts to treat them as mature, responsible adults. Some practical human relations techniques that
stimulate two-way communications include
The Legal Environment
Small businesses operate in a complex legal environment that places many constraints on
Periodic performance review sessions (every three months).
Bulletin boards.
Suggestion boxes.
Newsletters.
Regular open meetings.
recruitment, selection, placement and other personnel practices. Laws may specify what is required,
what is acceptable or what is prohibited. Every personnel system must consider the statutes relating
to these issues. One of the most important laws the small business owner should be aware of is the
Occupational Safety and Health Act (OSHA 1970). This law is aimed at reducing the number of
safety and health hazards in the American workplace. Businesses must comply with health and
safety standards set by the U.S. Department of Labor for individual industries.
The past sixty years have been characterized by laws that encourage collective bargaining and that
try to bring about a better balance between management and labor. Many of these laws apply to
small businesses:
!
!
Norris-LaGuardia Act (1932) -- Protects the rights of unions to organize. It also
prohibits yellow-dog contracts -- an employment practice where the firm requires
employees to promise they will not join a union if hired by the company.
Wagner Act (1935) -- Guarantees workers the right to engage in union activities, to
organize and to bargain collectively without interference from employers. A small
business manager may not prohibit employees from union activity.
See the discussion of other applicable laws in the first section under Recruiting and Compensation
Issues.
The Personnel Manager
Many small businesses cannot afford a full-time specialist to deal with human resource problems.
However, as a business grows, its structure becomes more complex and personnel problems increase
in number and potential cost. At a certain point in the typical small business, it becomes apparent
that a full-time or part-time personnel manager is needed. Conditions that indicate the necessity of a
personnel manager include
Competition for good personnel is especially keen in the market area.
The firm has more than 100 employees.
Employees are represented by a union.
Turnover is very high (and costly).
The need for skilled or semiskilled labor creates problems in recruitment or selection.
Employee morale is low.
gimmicks or other simple solutions. Trust cannot be created by excessive wages, great company
picnics or wonderful working conditions; it can only be generated through teamwork, honesty and
fairness. Although trust and productivity are complex issues and represent only part of the total
fabric of interpersonal relationships in small businesses, three attributes appear to have a positive
effect on trust in successful small businesses:
!
!
!
The owner-manager of the small business is open and honest about the day-to-day
business operations.
The owner-manager of the small business is consistent and fair about personnel
policies.
The owner-manager spends a great deal of his or her time concentrating on good
communications with those working in the firm.
Honesty
Secrecy breeds suspicion. Whenever information is kept on close hold, the context becomes open to
misinterpretation. Total quality improvement is based on the concept that workers care as much
about the success of the small business as the owners do. Studies of small businesses indicate that
employees tend to overestimate profits by substantial amounts. These same studies indicate that
when true financial information is shared with employees, substantial cost controls are voluntarily
initiated by all members of the work force.
Whenever in doubt concerning the amount of information to share with employees, experience
indicates that too much is better than not enough. Never lie to workers about human relations issues.
Institutional memory is long term; any deceit will be remembered for many years. Note that
employees talk with each other and inconsistencies will be quickly detected and brought to the
surface -- frequently to your embarrassment. The following are suggestions on how to avoid this
dilemma:
!
!
!
Take time to talk with your workers.
Find out what they're thinking.
Find out what they'd like to know and tell them whenever possible.
!
!
Don't tell only good things.
Allow employees an opportunity to provide you, the owner, with information,
questions and suggestions. In this way, communications are two way.
Fairness
Fairness ranges from consistency in personnel actions and fair market practices to adherence to the
various laws governing the workplace. The concept of due process requires that a small business
follow its own rules and policies. Employees must be treated the same when it comes to personnel
issues.
Each worker should have an equal chance to perform at his or her best. Decisions concerning
rewards, promotions and advancement should always be based on performance, and good
performance should be spelled out in the job description. When performance is equal among
employees, seniority should be used to break ties.
The key to healthy work relations is managing communications within the firm. Most of the
communication will flow as orders and instructions to employees. Nevertheless, communicating
(and honesty and fairness) is a two-way process. It is difficult for employees to be intelligent and
enthusiastic teamworkers if they do not know the reasons behind orders and instructions. Perhaps
even more important is giving employees the opportunity to contribute ideas and opinions before the
manager-owner makes a decision. This adds dignity and meaning to the job in the eyes of most
employees and their families.
Communicating includes telling employees where they stand, how the business is doing and what
future plans are being developed. Negative feedback may be necessary at times, but positive
feedback should be the primary tool for establishing good human relations. Never forget that
employees are people, and that they will quickly detect insincerity. They also will respond to honest
efforts to treat them as mature, responsible adults. Some practical human relations techniques that
stimulate two-way communications include
The Legal Environment
Small businesses operate in a complex legal environment that places many constraints on
Periodic performance review sessions (every three months).
Bulletin boards.
Suggestion boxes.
Newsletters.
Regular open meetings.
recruitment, selection, placement and other personnel practices. Laws may specify what is required,
what is acceptable or what is prohibited. Every personnel system must consider the statutes relating
to these issues. One of the most important laws the small business owner should be aware of is the
Occupational Safety and Health Act (OSHA 1970). This law is aimed at reducing the number of
safety and health hazards in the American workplace. Businesses must comply with health and
safety standards set by the U.S. Department of Labor for individual industries.
The past sixty years have been characterized by laws that encourage collective bargaining and that
try to bring about a better balance between management and labor. Many of these laws apply to
small businesses:
!
!
Norris-LaGuardia Act (1932) -- Protects the rights of unions to organize. It also
prohibits yellow-dog contracts -- an employment practice where the firm requires
employees to promise they will not join a union if hired by the company.
Wagner Act (1935) -- Guarantees workers the right to engage in union activities, to
organize and to bargain collectively without interference from employers. A small
business manager may not prohibit employees from union activity.
See the discussion of other applicable laws in the first section under Recruiting and Compensation
Issues.
The Personnel Manager
Many small businesses cannot afford a full-time specialist to deal with human resource problems.
However, as a business grows, its structure becomes more complex and personnel problems increase
in number and potential cost. At a certain point in the typical small business, it becomes apparent
that a full-time or part-time personnel manager is needed. Conditions that indicate the necessity of a
personnel manager include
Competition for good personnel is especially keen in the market area.
The firm has more than 100 employees.
Employees are represented by a union.
Turnover is very high (and costly).
The need for skilled or semiskilled labor creates problems in recruitment or selection.
Employee morale is low.
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