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HRM & Motivation Theories

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Human resource management - function of
attracting, developing, and retaining enough
qualified employees to perform the activities
necessary to accomplish organizational
objectives. Three main objectives:
1)

Providing qualified, well-trained

employees for the organization.

2)

Maximizing employee effectiveness in

the organization.
Satisfying individual employee needs
through monetary compensation,
benefits, opportunities to advance, and
job satisfaction.

3)

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Respo

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Selection
25% of human resource professionals report a
shortage of job candidates with degrees in science,
engineering, technology and mathematics.
78 million Baby Boomers will retire with only 46
million Generation X workers to replace them.
HR must be creative in searching for qualified
employees.
Businesses look both internally and externally.

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Selecting
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Must follow legal requirements.
Civil Rights Act of 1964
Equal Employment Opportunity Commis
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programs
Civil Rights Act of 1991
Failure to follow these exposes
company to risk of litigation.
Hiring is a costly process for employers.
Some employers require employment
tests.

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Orient
Training
Newly hired employee often completes an
orientation program

Inform employees about company policies

Employee manuals
Describe benefits/programs
Training

Training Programs
On-the-job Training
Classroom and Computer-based Training
Management Development

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Performance appraisal - evaluation of an
employees job performance
Some firms conduct peer reviews while other firms
allow employees to review their supervisors and
managers.
May conduct a 360-degree performance review, a
process that gathers feedback from a review panel
that includes co-workers, supervisors, team
members, subordinates, and sometimes customers.

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Comp

Wages - compensation based on an hourly pay rate or the

amount of output produced.

Salary - compensation calculated on a periodic basis, such

as weekly or monthly.
Most firms base compensation decisions on five factors:
1) Salaries and wages paid by other companies that
compete for the same people
2) Government legislation, including the federal, state, or
local minimum wage
3) The cost of living
4) The firms ability to pay
5) Worker productivity

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Com

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Employee Benefits - Rewards such as retirement plans,
health insurance, vacation, and tuition reimbursement
provided for employees either entirely or in part at the
companys expense
30% of total employee compensation.
Some benefits required by law:
Social Security and Medicare contributions
State unemployment insurance and workers compensation
programs
Costs of health care are increasingly being shifted to
workers.
Retirement plans have become a big area of concern for
businesses.

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Flexible
Employees are provided a range of options from
which they can choose.
Medical, dental, vision, life and disability insurance

Many companies also offer flexible time off policies

instead of establishing a set number of holidays,
vacations days and sick days.
56% of companies surveyed use paid time off (PTO)
programs.
More than claim they have reduced unscheduled
absences

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Flexib
Allow employees to adjust their working hours and places of work to
accommodate their personal needs.
Flextime allows employees to set their own work hours within
constraints specified by the firm.
A compressed workweek allows employees to work the regular
number of weekly hours in fewer than the typical five days.
A job sharing program allows two or more employees to divide the
tasks of one job.
A home-based work program allows employees, or
telecommuters, to perform their jobs from home instead of at the
workplace.
Nearly 75% of the U.S. workforce will soon have the ability to
telecommute from homeor almost anywhere else.

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Voluntary turnover: employees leave firms to start their own
businesses, take jobs with other firms, move to another city, or retire.
Some firms ask employees who leave voluntarily to participate in exit
interviews to find out why they decided to leave.
Successful companies are clearly focused on retaining their best
workers.
Involuntary turnover: employers terminate employees because of poor
job performance, negative attitudes toward work and co-workers, or
misconduct such as dishonesty or sexual harassment.
Necessary because poor performers lower productivity and
employee morale.
Employers must carefully document reasons when terminating
employees.

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Dow
Downsizing - process of
Outsourcing - contracting with
reducing the number of
another business to perform
employees within a firm by
tasks or functions previously
eliminating jobs
handled by internal staff
members
Downsizing doesnt guarantee
Focus on business
improvements or cost savings.
competitiveness and flexibility
Devastating impact on employee
Get best price among
morale
competing bidders while
Encourages employees to put
avoiding long-term costs of inindividual career success ahead
house operations
of company loyalty

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Motivation starts with good employee morale, the mental
attitude of employees toward their employer and jobs.
High morale = sign of a well-managed organization
Poor morale shows up through absenteeism,
employee turnover, strikes, falling productivity, and
rising employee grievances

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Ne
Maslows hierarchy of needs: people have five levels of needs
that they seek to satisfy.
A satisfied need is not a motivator; only needs that remain
unsatisfied can influence behavior.
Peoples needs are arranged in a hierarchy of importance; once
they satisfy one need, at least partially, another emerges and
demands satisfaction.
Physiological needs
Safety needs
Social (belongingness) needs
Esteem needs
Self-actualization needs

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Herzb
Theory
Hygiene Factors
Job Environment
Salary
Job Security
Personal Life
Working Conditions
Status
Interpersonal Relations
Supervision
Company Policies

Motivator Factors
Achievement
Recognition
Advancement
The job itself
Growth Opportunities
Responsibility

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Equ
Expectancy Theory the
process people use to
evaluate the likelihood their
effort will yield the desired
outcome and how much
they want the outcome.

Equity Theory individuals

perception of fair and
equitable treatment.

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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,
challenging goals and receive
feedback that indicates their
progress toward goal
achievement.

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Mana
Objective
Systematic and organized approach that allows
managers to focus on attainable goals and achieve the
best results.
MBO helps motivate individuals by aligning their
objectives with the goals of the organization.
MBO Principals:

A series of related organizations, goals, and objectives

Specific objectives for each individual
Participative decision making
Set time period to accomplish goals
Performance evaluation and feedback

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Job
Job enlargement: job design that expands an employees
responsibilities by increasing the number and variety
of tasks assigned to the worker.

Job enrichment: change in job duties to increase

employees authority in planning their work, deciding how
it should be done, and learning new skills.

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Manager
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Two assumptions manager make about employees,
according to psychologist Douglas McGregor:
Theory X: employees dislike work and try to avoid it
whenever possible; managers must coerce or control them
or threaten punishment to achieve the organizations goals.
Theory Y: typical person likes work and learns to accept
and seek responsibilities; managers assume creative people
solve work-related problems.
A third theory from management professor William Ouchi:
Theory Z: worker involvement is key to increased productivity
for the company and improved quality of work life for
employees.

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Labor-Ma
Relations
Labor union: group of workers who have banded
together to achieve common goals in the areas of
wages, hours, and working conditions.
Found at local, national, and international levels.
The organized efforts of Philadelphia printers in 1786
resulted in the first U.S. minimum wage - $1 a day.
12% of the nations full-time workforce belong to
labor unions.

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Labor L
National Labor Relations Act of 1935 (Wagner Act) - legalized
collective bargaining and required employers to negotiate with
elected representatives of their employees.
Fair Labor Standards Act of 1938 - set the initial federal minimum
wage and maximum basic workweek for workers employed in
industries engaged in interstate commerce; outlawed child labor.
Taft-Hartley Act of 1947 (Labor-Management Relations Act) limited unions power by prohibiting a variety of unfair practices,
including coercing employees to join unions and coercing employers
to discriminate against employees who are not union members.
Landrum-Griffin Act of 1959 (Labor-Management Reporting and
Disclosure Act) - amended the Taft-Hartley Act to promote honesty
and democracy in running unions internal affairs.

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Bargainin
Collective bargaining: process of negotiation between
management and union representatives for the purpose of
arriving at mutually acceptable wages and working conditions
for employees.
Issues involved can include:
Wages
Work hours
Benefits
Union activities and responsibilities
Grievance handling and arbitration
Layoffs
Employee rights and seniority

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Most labor-management
negotiations result in a signed
agreement without a work
stoppage.
On average, 20 or fewer
negotiations involve a work
stoppage.
Mediation is the process of settling
labor-management disputes
through recommendations of a third
party.
Arbitration adds a third-party who
renders a legally binding decision.

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Un
Union Tactics
Strikestemporaryworkstoppagebyemployeesuntila
disputehasbeensettledoracontractsigned.
Picketingworkersmarchingattheentrancesofthe
employersbusinessasapublicprotestagainstsome
managementpractice.
Boycottorganizedattempttokeepthepublicfrom
purchasingtheproductsofafirm.
Management Tactics
Lockoutamanagementstriketoputpressureonunion
membersbyclosingthefirm.

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The Futu
Unions

Membership and influence are declining

8% of private-sector workers are union members, but

that is down from 17% in 1983

The large unions have been unable to organize any of

the Japanese-owned automobile labels.

Unions need to appeal to a wider range of workers

Unions need to work in partnership with management