Chapter 9 Human Resource Management Motivation and Labor Management Human Resource Management human resource management attracting developing and retaining enough qualified employees to perform the activities necessary to accomplish organizational objectives core responsibilities include planning recruitment training evaluations benefits employee separation human resource managers achieve objectives of o providing qualified employees o maximize employee effectiveness o satisfy employee needs Recruitment and Selection Finding Qualified Candidates Selecting and Hiring Employees advertising on the internet newspaper radio TV college recruits employee referrals Title VII of the Civil Rights Act of 1964 prohibits discrimination Americans with Disabilities Act of 1990 prohibits discrimination against disabled Equal Employment Opportunity Commission sets up affirmative action programs to increase job opportunities Civil Rights Act of 1991 gave right of jury trial and damages to victims of employment discrimination Cognitive ability tests measure job candidates abilities in perceptual speed verbal comprehension numerical aptitude general reasoning and spatial aptitude Orientation Training and Evaluation Training Programs On the Job Training prepares employees for job duties by allowing them to perform tasks under the guidance of experienced employees ex apprenticeship Classroom and Computer Based Training lectures AV aids computer instruction to teach employee what they need to know Management Development provides training designed to improve the skills and broaden the knowledge of current and potential executives o Content may involve review of issues facing the company Performance Appraisals performance appraisal evaluation of an employee s job performance that compares actual results with desired outcomes 360 degree performance review gathers feedback from a review panel of 8 12 people calibration face to face meetings between person who conducts appraisal manager and human resource mediator Compensation wages compensation based on an hourly pay rate or output produced salary compensation calculated on a periodic basis weekly monthly Compensation policies based on 5 factors o Salaries wages by other companies o Gov t legislation minimum wage o Cost of living o Firm s ability to pay o Worker s productivity Employee Benefits employee benefits retirement plans health insurance vacation tuition reimbursement as part of company expense firms are required to make Social Security and Medicare contributions Family and Medical Leave Act of 1993 requires covered employers to offer up to 12 weeks of unpaid job protected leave to eligible employees 401 k retirement savings plans to which employees can make pretax contributions to retirement accounts flexible benefit plans offer employees range of options different types of insurance plans employee contributions are made using pre tax dollars meaning employees don t pay taxes on contributions paid time off PTO instead of set number of vacation sick days some employers set PTO accounts employees use days from accounts without having to explain why they need the time off Flexible Benefits Flexible Work flexible work plans allow employees to adjust their working hours places to accommodate needs flextime allows employees to set their own work hours within constraints specified by firm compressed workweek allows employees to work the regular number of weekly hours in fewer than 5 days job sharing programs allows two or more employees to divide the tasks of one job home based work program allows to perform their jobs from home telecommuters commute to work via phone fax email computer Employee Separation Voluntary and Involuntary Turnover voluntary turnover occurs when employees leave firms to start their own businesses take jobs elsewhere move retire involuntary turnover occurs when employers terminate employees b c of poor job performance negative attitudes misconduct downsizing reducing the number of employees by eliminating jobs cut overhead costs and streamline organizational structure outsourcing contracting with another business to perform tasks previously handled by internal staff members allows a firm to continue performing functions it does best while hiring other companies to do tasks that they can handle more competently and cost effectively Downsizing Outsourcing Motivating Employees morale mental attitude of employees toward their employers and jobs extrinsic rewards are external to the work itself pay fringe benefits praise intrinsic rewards are related directly to performing the job satisfaction power punishment giving an undesirable consequence for a particular behavior Maslow s Hierarchy of Needs Theory Maslow s hierarchy of needs people have 5 levels of needs they seek to satisfy o Psychological food shelter clothing salaries comfy work environment o Safety retirement job security safe workplace o Social people want to be accepted o Esteem attention recognition appreciation o Self actualization seek fulfillment realizing potential using talents Herzberg s Two Factor Model of Motivation hygiene factors aspects of work that are not directly related to a task but to the environment salary job security personal life supervision motivator factors relate directly to specific aspects of a job achievement recognition promotion Expectancy Theory and Equity Theory expectancy theory describes the process people use to evaluate the likelihood their effort will yield the desired outcome Equity theory employees consider input effort and outcomes rewards employees then compare their perceived ratio of effort to reward to the ratios of other workers Goal Setting Theory and Management by Objectives goal target objective or result that someone tries to accomplish goal setting theory people will be motivated to the extent to which they accept specific goals and receive feedback that indicates progress goal specificity extent to which goals are detailed exact unambiguous goal difficulty extent to which a goal is hard or challenging to accomplish goal acceptance extent to which people consciously understand agree to goals performance feedback information about the quality quantity of past performance management by objectives MBO enables managers to focus on attainable goals and to achieve the best results based on resources series of goals specific objectives o o o participative decision making o o performance evaluation set time period Job Design and
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