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Human Resource Management, Motivation, and Labor-Management Relations

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Explain the importance of human resource management. Describe how recruitment and selection contribute to placing the right person in a job. Explain how training programs and performance appraisals help employees grow and develop.

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Discuss employee separation and the impact of downsizing and outsourcing.

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Explain how Maslow’s hierarchyof-needs theory, goal setting, job design, and managers’ attitudes relate to employee motivation.
Summarize the role of labor unions and the tactics of labor-management conflicts.

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Outline the methods employers use to compensate employees.

and job satisfaction. benefits. opportunities to advance.Human resource management . 3) Satisfying individual employee needs through monetary compensation. and retaining enough qualified employees to perform the activities necessary to accomplish organizational objectives. Three main objectives: 1) 2) Providing qualified. Maximizing employee effectiveness in the organization. developing. well-trained employees for the organization. .function of attracting.

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

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

• 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 .

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

including the federal.compensation based on an hourly pay rate or the amount of output produced. such as weekly or monthly. Most firms base compensation decisions on five factors: 1) 2) 3) 4) 5) Salaries and wages paid by other companies that compete for the same people Government legislation.• • • Wages . or local minimum wage The cost of living The firm’s ability to pay Worker productivity . Salary . state.compensation calculated on a periodic basis.

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• Employee Benefits . • 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.Rewards such as retirement plans. and tuition reimbursement provided for employees either entirely or in part at the company’s expense • 30% of total employee compensation. . health insurance. vacation.

life and disability insurance • Many companies also offer flexible time off policies instead of establishing a set number of holidays. dental. • 56% of companies surveyed use paid time off (PTO) programs. – Medical. vision.• Employees are provided a range of options from which they can choose. vacations days and sick days. – More than ½ claim they have reduced unscheduled absences .

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

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

process of reducing the number of employees within a firm by eliminating jobs • Downsizing doesn’t guarantee improvements or cost savings.contracting with another business to perform tasks or functions previously handled by internal staff members • Focus on business competitiveness and flexibility • Devastating impact on employee morale • Get best price among competing bidders while • Encourages employees to put avoiding long-term costs of inindividual career success ahead house operations of company loyalty . • Outsourcing .• Downsizing .

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

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

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 .

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 – individual’s perception of fair and equitable treatment. .

or result that someone tries to accomplish. objective. • Goal-setting theory . challenging goals and receive feedback that indicates their progress toward goal achievement.• Goal: target. .people will be motivated to the extent to which they accept specific.

• Systematic and organized approach that allows managers to focus on attainable goals and achieve the best results. goals. and objectives Specific objectives for each individual Participative decision making Set time period to accomplish goals Performance evaluation and feedback . • MBO helps motivate individuals by aligning their objectives with the goals of the organization. • MBO Principals: – – – – – A series of related organizations.

and learning new skills. deciding how it should be done. . Job enrichment: change in job duties to increase employees’ authority in planning their work.Job enlargement: job design that expands an employee’s responsibilities by increasing the number and variety of tasks assigned to the worker.

• 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.• Two assumptions manager make about employees. managers assume creative people solve work-related problems. • Theory Y: typical person likes work and learns to accept and seek responsibilities. managers must coerce or control them or threaten punishment to achieve the organization’s goals. . according to psychologist Douglas McGregor: • Theory X: employees dislike work and try to avoid it whenever possible.

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

including coercing employees to join unions and coercing employers to discriminate against employees who are not union members. outlawed child labor. • Landrum-Griffin Act of 1959 (Labor-Management Reporting and Disclosure 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. . • Taft-Hartley Act of 1947 (Labor-Management Relations Act) limited unions’ power by prohibiting a variety of unfair practices.amended the Taft-Hartley Act to promote honesty and democracy in running unions’ internal affairs.• National Labor Relations Act of 1935 (Wagner Act) .

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

. • On average.• Most labor-management negotiations result in a signed agreement without a work stoppage. 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.

• Boycott . • Picketing . .temporary work stoppage by employees until a dispute has been settled or a contract signed.Union Tactics • Strikes .workers marching at the entrances of the employer’s business as a public protest against some management practice.organized attempt to keep the public from purchasing the products of a firm.a management strike to put pressure on union members by closing the firm. Management Tactics • Lockout .

   Unions need to appeal to a wider range of workers Unions need to work in partnership with management .  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.

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