Chapter 9

1. Chapter 9 Human Resource Management & Motivation

2. 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.

3. Human Resource Functions

4. 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

5. 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

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

7. 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.

8. Evaluation: The Performance Appraisal • The performance appraisal is a method of evaluating an employee’s job performance by comparing actual results to desired outcomes.

9. 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)

10. 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.

11. 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.

12. 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.

13. 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 Examples of Benefits

14. Typical Employee Benefits

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

16. 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.

17. 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.

18. 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.

19. 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

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

21. Maslow’s Hierarchy of Needs

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

23. 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)

24. 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.

25. Douglas McGregor’s 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.

26. 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 Assumptions for Management Styles

27. 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.

28. 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