Chapter 9

Human Resource Management & Motivation

Human Resource Management

Human resource management has the function of attracting, developing, and retaining sufficient numbers of qualified employees to perform the activities necessary to accomplish organizational goals.

Large organizations have human resource departments.

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Human ResourcePlanning

Recruitment& Selection

Training,Development, &

Counseling

CareerManagement

Compensation & Benefits

PerformanceAppraisal

Functions

Human Resource Functions

Recruitment and SelectionTypical process:1. Advertise -Initial contact2. Application form3. Employment test4. Interviews by human resource

department5. Interview with supervisor6. Background checks7. Medical exam8. Employment

Recruitment and Selection continued

Legal requirements:1. Cannot discriminate based on race,

age, religion, color, sex, or national origin

2. Failure to comply with equal employment opportunity legislation can result in fines, penalties, & bad publicity

Orientation

Larger organizations have employee manuals that describe benefits, working conditions and expectations.

TrainingOn-the-job training is a training

method that teaches an employee to complete new tasks by performing them under the guidance of an experienced employee.

A management development program provides training designed to improve the skills and broaden the knowledge of current and potential managers.

Evaluation: The Performance Appraisal

The performance appraisal is a method of evaluating an employee’s job performance by comparing actual results to desired outcomes.

Evaluation: The Performance Appraisal

Who evaluates:1.Usually supervisors evaluate employees2.Some firms use peer review3.Some firms allow employees to review

supervisors and managers4.The 360-degree review includes

feedback from co-workers, supervisors, managers, and even customers. (new trend)

Compensation

Wages represent compensation based on an hourly pay rate or the amount of output produced.

Salary represents compensation calculated on a weekly, monthly, or annual basis.

Compensation continued

Excessive high wages and salaries may make it difficult for the organization to be competitive.

Inadequate wages can lead to high employee turnover, poor morale, and inefficient production.

Compensation continued

Employee benefits are rewards such as retirement plans, insurance, sick leave, child care, and tuition reimbursement provided entirely or in part at the company’s expense. (average nearly 40% of the payroll dollar)

Flexible or cafeteria benefit plans offer employees a range of options from which they can choose the types of benefits they receive.

Examples of Benefits

Health Insurance

Disability Insurance

Life Insurance

Retirement Plans

Sick Days

Holidays

Vacation

Child & Elder Care

Tuition Reimbursement

Elect Benefits To Receive

Enhanced Child Care

Flexible Schedules

Bank Of Paid Time Off

Flextime

Compressed Work Week

Job Sharing

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Employer Contributions To Life Insurance 1%

Educational Assistance, Product Discounts, Other Miscellaneous 6%

Paid Rest Periods 9%

Contributions To Retirement & Other Savings Plans 15%

Social Security, Medicare,Worker’s Comp, & Other Required Benefits 21%

Health Insurance & Other Health Related Benefits23%

Vacation & Other Time Off 25%

Typical Employee Benefits

Compensation continued

Flexible work plans are benefits that allow employees to adjust their working hours and places of work to accommodate their personal lives.

Flexible Work Plans

Flextime allows employees to set their own hours within constraints set by the firm.

The compressed workweek allows employees to work the regular number of required hours in fewer than the typical 5 days.

A job sharing program allows two or more employees to divide the tasks of one job.

A home-based work program or telecommuting allows employees to perform their jobs from home instead of at the workplace.

Terminating Employees

Employees who leave voluntarily are often asked to participate in an exit interview to find out the reasons they left.

Employers may terminate employees for: Poor job performance Negative attitudes toward work and co-

workers Misconduct such as excessive tardiness

or absenteeism, dishonesty or sexual harassment.

Downsizing

Downsizing is the process of reducing employees within a company by eliminating jobs. Usually to reduce costs and streamline

the organizational structure. May be done by offering early

retirement plans, voluntary severance programs, and opportunities for internal reassignment to different jobs.

Outsourcing

Outsourcing is relying on outside specialists to perform functions previously performed by company employees. Allows firm to focus on what they do

best May negotiate the best price among

competing bidders

Motivating Employees

Employers that rank high on the best places to work list share 3 R’s:

1. Employees are given responsibility for their jobs.

2. Rewards are equitable.

3. Employees know they have rights.

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Physiological

Safety Needs

Social Needs

Esteem Needs

Self Actualization

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Physiological

Safety Needs

Social Needs

Esteem Needs

Self Actualization

Maslow’s Hierarchy of Needs

Assumptions of Maslow’s Hierarch of Needs

1. People are wanting animals whose needs depend on what they already possess.

2. A satisfied need is not a motivator; only those needs that have not been satisfied can influence behavior.

3. People’s needs are arranged in a hierarchy of importance; one one need has been at least partially satisfied, another emerges and demands satisfaction.

Maslow’s Hierarch of Needs

Physiological needs - basic needs: food, shelter, and clothing. (wages & work environment)

Safety needs - physical and economic protection. (retirement plans, job security, safe work place)

Social needs - acceptance by others. (good relations with co-workers, managers, group activities)

Esteem needs - receiving attention, recognition, and appreciation from others. (recognition for job performance)

Self-actualization needs drive people to seek fulfillment, realizing their own potential fully using their talents and capabilities. (challenging work assignments)

Job Design Motivation

Job enlargement expands the employee’s job by increasing the number and variety of tasks they perform.

Job enrichment gives employees more authority in planning their work, deciding how it should be done, and learning more skills to help them grow.

Douglas McGregor’s Theory

A student of MaslowStudied motivation from the perspective

or how managers view employeesCoined the terms theory X and theory Y

as labels for the assumptions that different managers make about worker behavior.

Assumptions for Management Styles

Theory XEmployees dislike

work & will avoid itEmployees must be

coerced, controlled, or threatened to achieve organizational objectives

Employees avoid responsibility & want direction

Theory YEmployees view

work as a normal activity as natural as play or rest

Employees will self-direct in achieving organizational objectives

Employees accept and want to take responsibility for work

Theory Z

Theory Z views involved workers as the key to increased productivity for the company and an improved quality of work life for the employees.

–Participative management style–Blends American and Japanese management methods.

Human Resource Concerns for the 21st Century

Workforce getting older Increase in number of disabled

workersMore employees single parents or

couples without children Increased use of contingent workersMore diversity Increased use of work teamsExpanding employee benefits