Lecture 8 Human Resource Management

1. Lecture 8 Human Resource Management

2. Human Resources

3. Human Resource Management Managerial Activity to Attract, Develop, and Maintain an Effective Work Force to Fulfill Organizational Goals Identification and Selection of Promising Applicants Who Will Become Suitable Employees in the Organization Critical to the Profitability and Success of the Firm Match Applicant Skills with Needed Tasks to Be Performed

4. Human Resource Management • Three Main Objectives • Providing Qualified, Well-trained Employees for the Organization • Maximizing Employee Effectiveness in the Organization • Satisfying Individual Employee Needs Through Monetary Compensation, Benefits, Opportunities to Advance, And Job Satisfaction

5. Organizational Fit

6. HR Functions • Recruitment and Selection • Job and Task Analysis • Personnel Administration and Policies • Compensation and Benefits Planning • Orientation, Training and Development • Evaluating Performance • Ethical Codes • Health and Safety • Labor Relations

7. HR Functions

8. Recruitment and Selection Process of Increasing the Workforce Two Separate Processes Clear Criteria Must Be Created to Guide these Processes Recruitment Initial Action Designed to Attract the Right Type of Applicant Selection Evaluation of a Pool of Applicants for the Most Suitable Choice

9. Recruiting Pyramid

10. Job Analysis Provides Useful Recruitment Information Job Analysis Examination of Jobs to Identify Key Requirements of Each Position Job Description Description of the Role and Duties of a Position Resulting from Job Analysis Job Specification Depiction of the Mental and Physical Attributes of the Job Holder

11. Successful Recruitment

12. Personnel Policies • Organizational Policies which Define the Treatment, Rights, Obligations, and Relations of People in the Company • The Rules and Procedures that Protect Workers • Policies Cover Issues which Arise During the Firm’s Normal Operations • Firm’s Expectations of the Employees • Work Processes and Procedures • Functioning of the Organization

13. Compensation Remuneration System Based upon Job Requirements, Employee Knowledge and Skills, and Performance in Return for Employee Contributions to the Firm Direct Compensation Base Pay, Bonuses, and Incentives Indirect Compensation Benefits and Services, such as paid Vacation and Holidays, Pension, and Recreational Activities

14. Orientation and Training Provides Basic Background about the Firm and Teaches New Employees the Basic Skills Necessary to Perform Provide a Broad Sense of the Firm Convey Work Behavior Expectations Socialize into the Corporate Culture Strategic Importance To Ensure Employees Are Working towards Organizational Goals

15. On-the-Job Training • Having an Employee Learn a Job by Doing Job-related Tasks • Inexpensive • Immediate Performance Feedback • Methods • Coaching or Understudy • Job Rotation • Special Assignments

16. Management Development • Attempts to Improve Current or Future Management Performance • Imparting New Knowledge • Changing Attitudes • Increasing Skills • Processes Used • Job Rotation Management Game • Coaching Case Study Method • Role Playing Development Centers • Seminars Behavior Modeling

17. Performance Evaluation Activities through which an Employee’s Contributions Are Assessed To Develop Competence To Enhance Performance To Distribute Rewards Goal-based Appraisals Employees Work Performance is Measured Against Specific Goals Non-traditional Appraisals Emphasis on Developmental Meetings

18. Ethical Codes • Organizations Are Bound by Law to Treat Employees Fairly and not Discriminate Against Identified Groups • Organizational Ethical Stewardship • Conveying Ethical Issues • Promoting Ethical Behavior • Disseminating Ethical Guidelines • Conducting Ethical Training • Managing Ethical Compliance • Overseeing Ethical Grievances

19. Health and Safety Create Policies for the Health and Safety of All Employees and to Reduce Workplace Injuries and Illnesses Implement Policies to Ensure Awareness of Health and Safety Issues Establish Methods of Meeting Health and Safety Requirements Check for Unsafe Working Conditions Ensure Employees Fulfill Responsibilities Outlines in the Organizational Policies

20. Core HR Responsibilities

21. Labor Relations

22. Labor Relations Personnel Administration Emphasizes Employer Relations with Individual Employees Labor Relations  Focuses on Organized Employment Relationships Emphasis on Collective Bargaining with Trade Unions Trade Union  Workers Who Have Joined Forces to Negotiate Wages, Hours, and Working Conditions as a Group

23. Labor Legislation National Labor Relations Act of 1935 (Wagner Act) Required Employers to Negotiate with Elected Employee Union Representatives Fair Labor Standards Act of 1938 Set Initial Federal Minimum Wage and Maximum Basic Workweek for Interstate Trade Workers Outlawed Child Labor

24. Labor Legislation Taft-Hartley Act of 1947 (Labor-Management Relations Act) Limited Unions’ Power by Outlawing a Variety of Unfair Labor Practices Landrum-Griffin Act of 1959 (Labor-Management Reporting and Disclosure Act) Amended Taft-Hartley Act to Enhance Honesty and Democracy in Unions’ Internal Affairs

25. Grievance Procedure

26. Union Tactics Strikes Temporary Employee Work Stoppage Until a Dispute Has Been Settled Picketing Workers Marching at Employer’s Entrances as a Public Protest Boycott Organized Attempt to Keep People from Purchasing a Firm’s Products

27. Management Tactics Lockout A Management Strike to Put Pressure on Union Members by Closing the Firm Strikebreakers An Individual Who Continues to Work During an On-going Strike to Continue Production or Providing Services Often the Individual Is Hired Before or During the Strike

28. Future of Unions Membership and Influence Are Declining Private-sector Membership Down from 17% in 1983 to 8% Today Unions Have Been Unable to Organize Japanese-owned Companies Appeal to a Wider Range of Workers Is Needed Confrontational Approach Unsuccessful Partnership with Management

29. Motivation Theory

30. Definitions • Motivation – Behavior Related Actions that Impart Direction and Determination • Is Inferred from Behavior • Performance – Mission or Goal Behaviors Directed Toward the Organization • Differs from Effectiveness • Job Satisfaction– Level of Enjoyment One Achieves through a Job or Work Activity • Related to Organizational Citizenship

31. Motivation Motivation Begins with High Employee Morale Mental Attitude towards Employer High Morale Implies Well-managed Organization Poor Morale Displayed in Falling Productivity, Absenteeism, Employee Turnover, Employee Grievances, Strikes

32. Types of Motivation

33. Maslow Most Basic Needs Are Inborn Evolved Over Thousands of Years All Humans Are Motivated by Needs Explains How Needs Motivate People People Have Five Levels of Needs Arranged in Importance Must Satisfy Each Need in Turn Starting with Needs for Survival

34. Maslow • Only After Lower Order Needs Are Met Are Higher Order Needs Considered • Only Unsatisfied Needs Motivate • Physiological Needs • Safety Needs • Social (Belongingness) Needs • Esteem Needs • Self-Actualization

35. Maslow Hierarchy of Needs

36. Maslow Modified Expanded Self-actualization Level 5 Cognitive, Aesthetic, and Transcendence Levels Are Rooted in Self-actualization Self-actualizing Commonly Involves the Newly Added Drivers Adaptations Best Illustrate All Aspects of Self-actualization

37. Revised Hierarchy of Needs

38. McClelland • Built on Maslow’s Work Identifying Three Motivators that All People Possess • Need for Achievement • Need for Affiliation • Need for Power • One Motivating Driver Is Dominant • Motivators Are Learned, Determined by Culture and Life Experience • Gender, Culture, or Age Aside

39. McClelland Needs Theory

40. Hertzberg Identified which Factors in an Employee’s Work Environment Caused Satisfaction and Dissatisfaction Job Characteristics Related to Satisfaction and Dissatisfaction Motivators Satisfaction Related Characteristics Hygene Factors Dissatisfaction Related Characteristics

41. Hertzberg Two Factor Theory

42. McGregor Identified Two Perceptions of Managers Theory X Employees Dislike Work and Try to Avoid Work Whenever Possible Coerced, Threatened, or Controlled Workers Achieve Goals Theory Y Employees Likes Work and Seeks Greater Responsibilities Trusted Workers Achieve Goals

43. McGregor Theory X-Y

44. Ouchi • Theory Z • Combined the Best of American and Japanese Management Practices • Focused upon Increasing Worker Loyalty to Company • Worker Involvement Is Critical for Increased Productivity • For the Company • For Improved Quality of Employee Work Life

45. Ouchi Theory Z

46. Atkinson People with a High Need for Achievement Expect Success More than Failure People with a High Need for Achievement Typically Chose Moderately Challenging Tasks Over Easy Or Difficult Tasks People with a Fear of Failure Avoided Moderately Challenging Tasks in Favor of Very Easy or Very Difficult Tasks Task Was Too Hard to Succeed

47. Atkinson Achievement Theory

48. Locke & Latham People with More Difficult but Attainable Goals Perform Better Goals Can Be Either Directional Goals or Accuracy Goals Based on the Extent to which Goals Have  Clarity  Challenge  Commitment  Feedback  Task Complexity

49. Locke & Latham Directional Goals Goals People Work toward without Knowing the Precise Steps to Take Are More Motivational Goals Accuracy Goals Goals Characterized by Careful Planning to Identify the Best Paths to Achieve the Goals with Minimal Deviations

50. Locke & Latham Goal Setting