Identify the components of human resource management.

2. Section Objectives • Identify the components of human resource management.

3. The Main Idea People are the most important resource of a small business. The employees that are recruited, hired, trained, and kept have a major impact on a company’s performance.

4. Content Vocabulary human resources human resource management labor union educational activities developmental activities cost effective employee complaint procedure Pregnancy Discrimination Act

5. Human Resource Management The human resources of a company represent one of its largest investments. human resources the people employed in a business, commonly referred to as personnel

6. Human Resource Management The primary goals of human resource management are to facilitate performance and improve productivity. human resource management the part of business concerned with recruiting and managing employees

7. Human Resource Management Components of Human Resource Management Recruiting Recruiting and screening employees Managing Managing union dealings Overseeing Overseeing employee training and development Overseeing pay and benefits Overseeing Resolving day-to-day problems Resolving Ensuring Ensuring equal opportunity Handling Handling employee termination 7

8. Recruiting and Screening Employees You can find new employees by: • recruiting from within • recruiting from competitors • recruiting with ads, job boards, employment agencies, and word of mouth

9. Managing Dealings with Unions Labor unions strengthen workers’ ability to bargain for wages, benefits, working conditions, and other concerns. labor unions organizations that represent workers in their dealings with employers

10. Overseeing Training and Development Businesses should include educational activities and developmental activities to employee training. educational activities actions, such as a human relations workshop, that prepare employees for advancing in the organization developmental activities actions, such as an industry conference, that prepare managers to lead the company into the future

11. Overseeing Training and Development After your training program is up and running, you should evaluate it to see how cost effective it is and whether the program’s objectives were achieved. cost effective economically worthwhile in terms of what is achieved for the amount of money spent

12. Overseeing Training and Development Training and Development Techniques On-the-job training Vestibule training Conferences and seminars Web-basedinstruction Classroom teaching Job rotation Mentoring Coaching 12

13. Resolving Day-to-Day Problems Employee conflicts can be resolved in an objective manner when an employee complaint procedureis in place. employee complaint procedure a formal procedure for handling employee complaints, usually in writing and distributed to employees

14. Ensuring Equal Opportunity As an employer and manager, you must ensure that employees are not discriminated against. One law you should know about is the Pregnancy Discrimination Act. Pregnancy Discrimination Act a federal law that requires that employers treat their pregnant employees like all other employees when determining benefits

15. Handling Problem Employees and Termination Sometimes employees do not work out, or they perform below expectations. In those instances, you may have to resort to professional counseling or assistance, disciplinary action, or termination.

16. After You Read • Identify the components of human resource management. Human resource management includes recruiting and screening employees, managing dealings with unions, overseeing employee training and development, overseeing pay and benefits, resolving day-to-day problems, ensuring equal opportunity, and handling employee terminations.

17. Section Objectives • Explain how managers influence motivation. • Describe ways to maximize employee performance. • Explain the importance of delegation. • Explain how to assess motivational techniques used to increase performance levels.

18. The Main Idea One of an entrepreneur’s tasks is to motivate employees. Employees who are motivated produce more and better work. Section 18.2 Motivating Employees

19. Content Vocabulary Theory X Theory Y hygiene factors motivating factors telecommuting family leave flextime performance evaluation

20. How Managers Influence Motivation Communication is a key factor in employee motivation. How employees are regarded and treated also affects their motivation.

21. Assumptions Managers Make In The Human Side of Enterprise, Douglas McGregor identifies two sets of assumptions that managers make about employees: Theory X and Theory Y. Theory X the belief that employees are basically lazy and need constant supervision Theory Y the belief that employees are responsible, like to work, and want intrinsic rewards

22. Hygiene Factors Versus Motivating Factors According to Frederick Herzberg, two types of factors motivate workers: hygiene factors and motivating factors. hygiene factors factors that do not improve situations, but keep situations from getting worse motivating factors factors that motivate employees, such as achievement, recognition, responsibility, advancement, growth, and the reward from doing the work itself

23. Maximizing Employee Performance To improve employee motivation: • Provide meaningful work. • Allow scheduling flexibility. • Involve employees in decision making. • Give recognition. • Provide performance evaluations. • Reward performance. • Delegate responsibility. • Evaluate employee motivational techniques.

24. Provide Meaningful Work Employees who are motivated by their work related to it in a special way. They take pride in it. To prompt such feelings, a job must be meaningful. If your employees’ jobs are not meaningful, consider redesigning those jobs.

25. Allow Scheduling Flexibility Flexible schedule techniques include: • telecommuting • family leave • flextime

26. Allow Scheduling Flexibility Telecommuting for employees has been made possible because of computers, communications technology, and overnight delivery services. telecommuting the act of performing some or all of a job away from the business

27. Allow Scheduling Flexibility Large companies must offer family leave under federal law. family leave a policy that allows employees to take time off work to attend to significant personal events, such a births, deaths, and family illness, without fear of job loss

28. Allow Scheduling Flexibility Businesses that offer flextime allow employees to adjust their work schedules to suit their personal needs. flextime a policy that allows employees to choose the work hours and days that are most effective for their personal lives

29. Involve Employees in Decision Making Let employees make suggestions about where the organization is going and what their roles will be.

30. Involve Employees in Decision Making Using quality circles (described in Chapter 16) is another means of involving employees in decision making.

31. Provide Performance Evaluations A performance evaluation can be motivational when suggestions for improvement present the employee with something to strive for, a measure of future accomplishment. performance evaluation the process of judging how well an employee has performed the duties and responsibilities associated with a job, usually for the purpose of contract renewal or promotion

32. Delegating Responsibility When you delegate responsibility, you give an employee the authority to and responsibility for carrying out some of your work. Delegating responsibility gives you more time to work on other things and also motives the employee.

33. Evaluating Employee Motivational Techniques Motivational techniques that require a large commitment of time and resources should be evaluated to determine if they are: • working as a motivator • in need of revision • worth the cost, and • are able to be done a better way.

34. After You Read 1. Explain how managers influence motivation. Managers influence motivation by communicating with their employees. Managers must communicate goals and objectives if they expect employees to meet them. Managers also influence employee motivation by the way they treat their employees.

35. After You Read 2. Explain ways to maximize employee performance. Ways to maximize employee performance include providing meaningful work, allowing scheduling flexibility, involving employees in decision making, giving recognition, providing performance evaluations, and rewarding performance.

36. After You Read 3. Explain the importance of delegation. Delegation allows an owner to work on other things, motivates the employee, shows confidence in the employee, and prepares the employee for more responsibilities.

37. After You Read 4. Explain how to assess motivational techniques used to increase performance levels. Motivational techniques that require a large commitment of time and resources, such as awards banquets, should be formally assessed to determine whether they are working as motivators, whether they need revision, whether they are worth the cost, and whether they can be done a better way.

38. End of Chapter 18 Managing Human Resources