Copyright © 2003 by South-Western. All Rights Reserved. CHAPTER NINE HUMAN RESOURCE MANAGEMENT AND...

Copyright © 2003 by South-Western. All Rights Reserved.

CHAPTER NINECHAPTER NINE

HUMAN RESOURCE HUMAN RESOURCE MANAGEMENT AND MOTIVATIONMANAGEMENT AND MOTIVATION

Text by Profs. Gene Boone & David KurtzText by Profs. Gene Boone & David KurtzMultimedia Presentation byMultimedia Presentation byProf. Milton PressleyProf. Milton PressleyThe University of New OrleansThe University of New Orleans

[email protected]@uno.edu


• Describe the importance of human resource Describe the importance of human resource management and the responsibilities of human management and the responsibilities of human resource managersresource managers

• Explain the role of human resource planning in an Explain the role of human resource planning in an organization’s competitive strategyorganization’s competitive strategy

• Discuss the ways firms recruit and select Discuss the ways firms recruit and select employees and the importance of compliance with employees and the importance of compliance with employment-related legislationemployment-related legislation

• Summarize how firms train and evaluate Summarize how firms train and evaluate employees to develop effective workforcesemployees to develop effective workforces

LEARNING GOALSLEARNING GOALSLEARNING GOALSLEARNING GOALS


• Identify the methods employers use to compensate Identify the methods employers use to compensate employees through pay systems and benefit employees through pay systems and benefit programsprograms

• Discuss employee termination and the impact of Discuss employee termination and the impact of downsizing and outsourcingdownsizing and outsourcing

• Explain the concept of motivation in terms of Explain the concept of motivation in terms of satisfying employee needssatisfying employee needs

• Describe how human resource managers apply Describe how human resource managers apply theories of motivation in attracting, developing, theories of motivation in attracting, developing, and retaining employeesand retaining employees

• Identify trends that influence the work of human Identify trends that influence the work of human resource managers in the 21resource managers in the 21stst century century

LEARNING GOALSLEARNING GOALSLEARNING GOALSLEARNING GOALS


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CHAPTER OVERVIEWCHAPTER OVERVIEWCHAPTER OVERVIEWCHAPTER OVERVIEW• Addresses the critical issues of human Addresses the critical issues of human

resource management and motivationresource management and motivation• Discusses the ways organizations attract, Discusses the ways organizations attract,

develop, and retain employeesdevelop, and retain employees• Describes the concepts behind motivationDescribes the concepts behind motivation• Examines the way human resource Examines the way human resource

managers apply the above concepts to managers apply the above concepts to increase employee satisfaction and increase employee satisfaction and organizational effectivenessorganizational effectiveness


HUMAN RESOURCE MANAGEMENT: A HUMAN RESOURCE MANAGEMENT: A VITAL ORGANIZATIONAL FUNCTIONVITAL ORGANIZATIONAL FUNCTIONHUMAN RESOURCE MANAGEMENT: A HUMAN RESOURCE MANAGEMENT: A VITAL ORGANIZATIONAL FUNCTIONVITAL ORGANIZATIONAL FUNCTION

• Human resource management:Human resource management: function function of attracting, developing, and retaining of attracting, developing, and retaining sufficient numbers of qualified employees sufficient numbers of qualified employees to perform the activities necessary to to perform the activities necessary to accomplish organizational goalsaccomplish organizational goals

• Human resource managers responsible for:Human resource managers responsible for:• Developing specific programs and activitiesDeveloping specific programs and activities• Creating a work environment that generates Creating a work environment that generates

employee satisfaction and efficiencyemployee satisfaction and efficiency

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Figure 9.1Rules for Clerks, 1900

Figure 9.1Rules for Clerks, 1900


HUMAN RESOURCE MANAGEMENT: A HUMAN RESOURCE MANAGEMENT: A VITAL ORGANIZATIONAL FUNCTIONVITAL ORGANIZATIONAL FUNCTIONHUMAN RESOURCE MANAGEMENT: A HUMAN RESOURCE MANAGEMENT: A VITAL ORGANIZATIONAL FUNCTIONVITAL ORGANIZATIONAL FUNCTION

• Professional employer organizations Professional employer organizations (PEOs):(PEOs): company that helps small and company that helps small and mid-sized firms with a wide range of mid-sized firms with a wide range of human resource services including hiring human resource services including hiring and training employees, administering and training employees, administering payroll and benefits programs, handling payroll and benefits programs, handling workers’ compensation and unemployment workers’ compensation and unemployment insurance, and maintaining compliance insurance, and maintaining compliance with labor lawswith labor laws

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Figure 9.2 Human Resource Management Responsibilities

Figure 9.2 Human Resource Management Responsibilities


HUMAN RESOURCE PLANNINGHUMAN RESOURCE PLANNINGHUMAN RESOURCE PLANNINGHUMAN RESOURCE PLANNING

• Human resource managers:Human resource managers:• Develop staffing plans based on the Develop staffing plans based on the

organization's competitive strategiesorganization's competitive strategies• Responsible for adjusting their company’s Responsible for adjusting their company’s

workforce to meet requirements of:workforce to meet requirements of:• Expanding in new marketsExpanding in new markets• Reducing costsReducing costs• Adapting to new technologyAdapting to new technology

• Formulate long and short-term plans to Formulate long and short-term plans to provide needed employeesprovide needed employees

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RECRUITMENT AND SELECTIONRECRUITMENT AND SELECTIONRECRUITMENT AND SELECTIONRECRUITMENT AND SELECTION

• Human resource managers strive to Human resource managers strive to match applicants’ skills with match applicants’ skills with organizational needsorganizational needs

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Figure 9.3Steps in the Recruitment and Selection Process

Figure 9.3Steps in the Recruitment and Selection Process


Finding Qualified CandidatesFinding Qualified CandidatesFinding Qualified CandidatesFinding Qualified Candidates

• Access internal and external sourcesAccess internal and external sources• Consider internal employees firstConsider internal employees first• Look outside if qualified candidates Look outside if qualified candidates

not available internallynot available internally

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Selecting and Hiring EmployeesSelecting and Hiring EmployeesSelecting and Hiring EmployeesSelecting and Hiring Employees

• Must follow the requirements set Must follow the requirements set by federal and state lawby federal and state law

• Failure to comply with equal Failure to comply with equal employment opportunity legislation employment opportunity legislation can expose an employer to fines can expose an employer to fines and penalties, bad publicity, and and penalties, bad publicity, and poor employee moralepoor employee morale

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• Some firms try to screen out high-Some firms try to screen out high-risk employees by requiring drug risk employees by requiring drug testing for job applicantstesting for job applicants

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• Employment at will: Employment at will: practice that practice that allows the employment relationship allows the employment relationship to begin or end at any time at the to begin or end at any time at the decision of either the employee or decision of either the employee or the employer for any reasonthe employer for any reason

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• Training Training builds skills builds skills and knowledge that and knowledge that will prepare employees will prepare employees for new job for new job opportunitiesopportunities

ORIENTATION, TRAINING, AND ORIENTATION, TRAINING, AND EVALUATIONEVALUATIONORIENTATION, TRAINING, AND ORIENTATION, TRAINING, AND EVALUATIONEVALUATION

Training ProgramsTraining Programs


Figure 9.4Figure 9.4New Horizons: New Horizons: Communicating the Communicating the Importance of TrainingImportance of Training

Figure 9.4Figure 9.4New Horizons: New Horizons: Communicating the Communicating the Importance of TrainingImportance of Training



• On-the-job training On-the-job training prepares employees for prepares employees for job duties by allowing job duties by allowing them to perform the them to perform the tasks under the tasks under the guidance of guidance of experienced employeesexperienced employees

Training Programs

On-the-Job TrainingOn-the-Job TrainingOn-the-Job TrainingOn-the-Job Training



• Classroom and Classroom and Computer-Based Computer-Based Training:Training: Forms of Forms of classroom instruction such classroom instruction such as lectures, conferences, as lectures, conferences, audiovisual aids, audiovisual aids, programmed instruction, programmed instruction, and special machines to and special machines to teach employees teach employees everything from basic everything from basic math and language skills to math and language skills to complex, highly skilled complex, highly skilled taskstasks

Training Programs

On-the-Job Training

Classroom and Computer-Based Training




• Management Management development development program:program: training training designed to improve designed to improve the skills and broaden the skills and broaden the knowledge of the knowledge of current and potential current and potential executivesexecutives

Training Programs

On-the-Job Training


Management DevelopmentManagement Development



• Performance appraisal:Performance appraisal: method of evaluation method of evaluation employee’s job employee’s job performance by comparing performance by comparing actual results with desired actual results with desired outcomesoutcomes

• Based on this evaluation, Based on this evaluation, managers make objective managers make objective decisions about decisions about compensation, promotions, compensation, promotions, additional training needs, additional training needs, transfers, or firingstransfers, or firings

Training Programs

On-the-Job Training


Management Development

Performance Appraisals




• 360-degree 360-degree performance review:performance review: process that gathers process that gathers feedback from a review feedback from a review panel of about 8 to 12 panel of about 8 to 12 people, including people, including co-workers, team co-workers, team members, subordinates, members, subordinates, and sometimes and sometimes customerscustomers

Training Programs

On-the-Job Training


Management Development




COMPENSATIONCOMPENSATIONCOMPENSATIONCOMPENSATION

• Resource managers work to develop an Resource managers work to develop an equitable compensation system spanning equitable compensation system spanning wages and salaries plus benefitswages and salaries plus benefits

• Wages: Wages: compensation based on an compensation based on an hourly pay rate or the amount of output hourly pay rate or the amount of output producedproduced

• Salaries: Salaries: compensation calculated on a compensation calculated on a weekly, monthly, or annual basisweekly, monthly, or annual basis

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• Most firms base their compensation Most firms base their compensation policies on five factors:policies on five factors:• Salaries and wages paid by othersSalaries and wages paid by others• Government legislationGovernment legislation• Cost of livingCost of living• Firm’s ability to payFirm’s ability to pay• Worker productivityWorker productivity

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• Many employers link pay to superior Many employers link pay to superior employee performanceemployee performance

• Such incentive compensation programs Such incentive compensation programs may include:may include:• Profit-sharingProfit-sharing• Gain sharingGain sharing• Lump-sum bonusesLump-sum bonuses• Pay for knowledgePay for knowledge

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EMPLOYEE BENEFITSEMPLOYEE BENEFITSEMPLOYEE BENEFITSEMPLOYEE BENEFITS

• Employee benefits:Employee benefits: employee employee rewards such as health insurance rewards such as health insurance and retirement plans that employers and retirement plans that employers give, entirely or in part, at their own give, entirely or in part, at their own expenseexpense

• Some benefits, e.g. Social Security Some benefits, e.g. Social Security contributions, are required by lawcontributions, are required by law

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Figure 9.5Types of Employer-Paid Benefits

Figure 9.5Types of Employer-Paid Benefits


Flexible BenefitsFlexible BenefitsFlexible BenefitsFlexible Benefits

• Flexible benefit plan (cafeteria Flexible benefit plan (cafeteria plan):plan): benefit system that offers benefit system that offers employees a range of options from employees a range of options from which they can choose they types of which they can choose they types of benefits they receivebenefits they receive

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Flexible WorkFlexible WorkFlexible WorkFlexible Work

• Flexible work plan:Flexible work plan: employment employment that allows personnel to adjust their that allows personnel to adjust their working hours and places of work working hours and places of work to accommodate their personal livesto accommodate their personal lives• Flextime: Flextime: scheduling system that scheduling system that

allows employees to set their own allows employees to set their own work hours within constraints work hours within constraints specified by the firmspecified by the firm

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Flexible WorkFlexible WorkFlexible WorkFlexible Work• Compressed workweek:Compressed workweek: scheduling option scheduling option

that allows employees to work the regular that allows employees to work the regular number of weekly hours in fewer than the number of weekly hours in fewer than the typical five daystypical five days

• Job sharing:Job sharing: program that allows two or program that allows two or more employees to divide the tasks of one more employees to divide the tasks of one jobjob

• Home-based work:Home-based work: program allowing program allowing employees (sometimes called employees (sometimes called teleworkersteleworkers or or telecommuterstelecommuters) to perform their jobs from ) to perform their jobs from home rather than at the workplace space home rather than at the workplace space

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Figure 9.6 Workers Using the Internet for Business from Home

Figure 9.6 Workers Using the Internet for Business from Home


EMPLOYEE SEPARATIONEMPLOYEE SEPARATIONEMPLOYEE SEPARATIONEMPLOYEE SEPARATION

• Employer or employee can take the Employer or employee can take the initiative to terminate employmentinitiative to terminate employment

• Exit interview: Exit interview: conversation conversation designed to find out why an designed to find out why an employee decided to leaveemployee decided to leave

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DownsizingDownsizingDownsizingDownsizing

• Downsizing:Downsizing: process of reducing a process of reducing a firm’s workforce to reduce costs firm’s workforce to reduce costs and improve efficiencyand improve efficiency

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OutsourcingOutsourcingOutsourcingOutsourcing

• Outsourcing:Outsourcing: practice where functions practice where functions that were performed previously by that were performed previously by company employees are contracted to company employees are contracted to other firms whose employees perform other firms whose employees perform them a contractual basisthem a contractual basis

• Complements today’s focus on business Complements today’s focus on business competitiveness and flexibilitycompetitiveness and flexibility• Allows firms to continue performing the Allows firms to continue performing the

functions they do bestfunctions they do best

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MOTIVATING EMPLOYEESMOTIVATING EMPLOYEESMOTIVATING EMPLOYEESMOTIVATING EMPLOYEES

• Effective human Effective human resource management resource management makes important makes important contributions to contributions to employee motivationemployee motivation

Figure 9.7 Principal Figure 9.7 Principal Financial Group: Financial Group: Recognizing the Recognizing the Importance of Importance of Employee BenefitsEmployee Benefits



• Morale:Morale: mental attitude of mental attitude of employees toward their employees toward their employer and jobsemployer and jobs

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• NeedNeed: simply a lack of some useful : simply a lack of some useful benefitbenefit

• Motive:Motive: inner state that directs a inner state that directs a person toward the goal of satisfying person toward the goal of satisfying a felt needa felt need

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Figure 9.8The Process of MotivationFigure 9.8The Process of Motivation


Maslow’s Hierarchy of Needs Maslow’s Hierarchy of Needs TheoryTheoryMaslow’s Hierarchy of Needs Maslow’s Hierarchy of Needs TheoryTheory

• Five types of needs:Five types of needs:• Physiological needsPhysiological needs• Safety needsSafety needs• Social (belongingness) needsSocial (belongingness) needs• Esteem needsEsteem needs• Self-actualization needsSelf-actualization needs

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Motivating Employees through Motivating Employees through Job DesignJob DesignMotivating Employees through Motivating Employees through Job DesignJob Design

• Job enlargement:Job enlargement: job design change job design change that expands an employee’s that expands an employee’s responsibilities by increasing the responsibilities by increasing the number and variety of tasks they entailnumber and variety of tasks they entail

• Job enrichment:Job enrichment: change in job duties change in job duties to increase employees’ authority, to increase employees’ authority, responsibility, and skillsresponsibility, and skills

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Motivating Employees through Motivating Employees through Managers’ AttitudesManagers’ AttitudesMotivating Employees through Motivating Employees through Managers’ AttitudesManagers’ Attitudes

• Worker motivation is influenced by Worker motivation is influenced by the attitudes that managers display the attitudes that managers display towards employeestowards employees

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Motivating Employees through Motivating Employees through Managers’ AttitudesManagers’ AttitudesMotivating Employees through Motivating Employees through Managers’ AttitudesManagers’ Attitudes• Theory X: Theory X: assumption that employees assumption that employees

dislike work and will try to avoid itdislike work and will try to avoid it• Theory Y:Theory Y: assumption that employees assumption that employees

enjoy work and seek social, esteem, and enjoy work and seek social, esteem, and self-actualization fulfillmentself-actualization fulfillment

• Theory Z: Theory Z: assumption that employee assumption that employee involvement is key to productivity and involvement is key to productivity and quality of work lifequality of work life


Figure 9.9 Theory Z Management: A Blend of American and Japanese MethodsFigure 9.9 Theory Z Management: A Blend of American and Japanese Methods


HUMAN RESOURCE CONCERNS HUMAN RESOURCE CONCERNS FOR THE 21ST CENTURYFOR THE 21ST CENTURYHUMAN RESOURCE CONCERNS HUMAN RESOURCE CONCERNS FOR THE 21ST CENTURYFOR THE 21ST CENTURY

• Four kinds of trends -- demographic, Four kinds of trends -- demographic, workforce, economic, and work/life workforce, economic, and work/life events -- are shaping responsibilities events -- are shaping responsibilities and practices of human resource and practices of human resource managersmanagers


• Percentage of older Percentage of older people in the workforce people in the workforce is growingis growing

• Soon, many employees Soon, many employees will be juggling the will be juggling the responsibility of caring responsibility of caring for aging parents -- for aging parents -- sometimes along with sometimes along with child-care child-care responsibilitiesresponsibilities

Demographic Trends

Demographic Trends



• Disabled people are Disabled people are entering the workforce entering the workforce in increasing numbersin increasing numbers

• Workforce is becoming Workforce is becoming more diversemore diverse

Demographic Trends

Demographic Trends



• Contingent Contingent workers:workers: employees employees who work part-time, who work part-time, temporarily, only to temporarily, only to fill specific contractsfill specific contracts

• Use of contingent Use of contingent workers is expected workers is expected to growto grow

Demographic Trends

Workforce TrendsWorkforce Trends



Figure 9.10 Current Want-Ads for Contingent WorkersFigure 9.10 Current Want-Ads for Contingent Workers


• Demand for skilled Demand for skilled workers is growingworkers is growing

• Employers concerned Employers concerned with potential shortage with potential shortage of educated and of educated and qualified workersqualified workers• Adult literacy continues Adult literacy continues

to be a problemto be a problem

• Wired, globalized Wired, globalized marketplace is changing marketplace is changing the definition of work the definition of work hourshours

Demographic Trends

Workforce TrendsWorkforce Trends



• Globalization means Globalization means managers and employees managers and employees with international skills with international skills and experience will be and experience will be neededneeded

• Human resource plans Human resource plans that address the needs of that address the needs of employees in more than employees in more than one country will be one country will be neededneeded

Demographic Trends

Workforce Trends

Economic TrendsEconomic Trends



Figure 9.11Figure 9.11CIGNA: Providing CIGNA: Providing Benefits for a Global Benefits for a Global WorkforceWorkforce

Figure 9.11Figure 9.11CIGNA: Providing CIGNA: Providing Benefits for a Global Benefits for a Global WorkforceWorkforce


• The growing discrepancy The growing discrepancy between earnings at the between earnings at the top and bottom of top and bottom of America's income America's income distribution means that distribution means that some workers will be some workers will be motivated by relatively motivated by relatively basic needs -- making basic needs -- making ends meetends meet

• Continued focus on Continued focus on reducing costs, including reducing costs, including labor costslabor costs

Demographic Trends

Workforce Trends

Economic TrendsEconomic Trends



• Need to accommodate Need to accommodate aging workers, single aging workers, single parents with children, parents with children, and two-income familiesand two-income families

• Widespread casual dressWidespread casual dress• Some companies are Some companies are

making room for playmaking room for play

Demographic Trends

Workforce Trends

Economic Trends

Work/Life TrendsWork/Life Trends



WHAT’S AHEADWHAT’S AHEADWHAT’S AHEADWHAT’S AHEAD

• Discussion of three ways Discussion of three ways of improving performance:of improving performance:• Empowering employees to Empowering employees to

make decisionsmake decisions• Leading them to work Leading them to work

effectively as teamseffectively as teams• Fostering clear, positive Fostering clear, positive

communicationcommunication

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Copyright © 2003 by South-Western. All Rights Reserved. CHAPTER NINE HUMAN RESOURCE MANAGEMENT AND...

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