Human Resource Management

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Chapter 9

• Human Resource Management Motivation

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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 Resource Functions
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Recruitment and Selection

• Typical process
• Advertise -Initial contact
• Application form
• Employment test
• Interviews by human resource department
• Interview with supervisor
• Background checks
• Medical exam
• Employment

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Recruitment and Selection continued

• Legal requirements
• Cannot discriminate based on race, age, religion,
  color, sex, or national origin
• Failure to comply with equal employment
  opportunity legislation can result in fines,
  penalties, bad publicity

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Orientation

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

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Training

• On-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.

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Evaluation The Performance Appraisal

• The performance appraisal is a method of
  evaluating an employees job performance by
  comparing actual results to desired outcomes.

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Evaluation The Performance Appraisal

• Who evaluates
• Usually supervisors evaluate employees
• Some firms use peer review
• Some firms allow employees to review supervisors
  and managers
• The 360-degree review includes feedback from
  co-workers, supervisors, managers, and even
  customers. (new trend)

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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.

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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.

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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 companys 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.

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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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Typical Employee Benefits
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Compensation continued

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

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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.

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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.

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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.

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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

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Motivating Employees

• Employers that rank high on the best places to
  work list share 3 Rs
• Employees are given responsibility for their
  jobs.
• Rewards are equitable.
• Employees know they have rights.

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Maslows Hierarchy of Needs
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Assumptions of Maslows Hierarch of Needs

• People are wanting animals whose needs depend
  on what they already possess.
• A satisfied need is not a motivator only those
  needs that have not been satisfied can influence
  behavior.
• Peoples needs are arranged in a hierarchy of
  importance one one need has been at least
  partially satisfied, another emerges and demands
  satisfaction.

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Maslows 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)

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Job Design Motivation

• Job enlargement expands the employees 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.

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Douglas McGregors Theory

• A student of Maslow
• Studied motivation from the perspective or how
  managers view employees
• Coined the terms theory X and theory Y as labels
  for the assumptions that different managers
  make about worker behavior.

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Assumptions for Management Styles

• Theory X
• Employees dislike work will avoid it
• Employees must be coerced, controlled, or
  threatened to achieve organizational objectives
• Employees avoid responsibility want direction

• Theory Y
• Employees 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

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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.

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Human Resource Concerns for the 21st Century

• Workforce getting older
• Increase in number of disabled workers
• More employees single parents or couples without
  children
• Increased use of contingent workers
• More diversity
• Increased use of work teams
• Expanding employee benefits