Introduction to Business

HUMAN RESOURCE
MANAGEMENT
CHAPTER # 10 &11
HUMAN RESOURCE MANAGEMENT

Human Resource Management is the process of

acquiring, retaining, terminating, developing and properly
using the human resources in an organization.

Motivation
Motivation is the way drives or needs direct a person’s
behavior towards a specific goal. It concerns the level of
effort put forward to pursue the goals.
The tools of motivation is reward and punishment.
Reward can be Extrinsic or Intrinsic
 REWARDS

Extrinsic Rewards
Extrinsic rewards are external to the work itself; they are
administered by someone else; such as a manager.
Example: payment, fringe benefits, recognitions and praise.

Intrinsic Rewards
Intrinsic rewards are related directly to performing the job.
These are often described as self-administered.
Example: felling good about accomplishing an objective and about
being able to make job-related decisions without consulting a
supervisor.
PUNISHMENT

Punishment involves taking something away from a

person or administering an undesirable consequence
for a particular behavior.
Example: a frequently late worker would be punished by
having his pay tie up for the time missed.
Maslow’s Needs Hierarchy

A popular theory of human needs that helps us to understand

motivation, is psychologist Abraham Maslow’s needs
hierarchy.

A Motivational theory, offered by Maslow, that people have

five needs arranged in a hierarchy from physiological to
self-realization. The needs Maslow identified fall into a
hierarchy or arrangement of power to motivate behavior.

Each higher order need becomes active and motivates a

person only when lower order needs have been fulfilled. Each
person is assumed to have needs in each category.
Maslow’s Needs Hierarchy
Needs Hierarchy

Physiological Need
Biological need such as for food, air, water
Safety Need
Security needs such as the need to be financially secure and
protected against job loss.
Social Need
The need to belong and to interact with other people
Esteem Need
The need for self-respect and for respect from others.
Self-Actualization Needs
The need to use and display one’s full range of skills and
competence.
Needs Hierarchy
McGregor’s Theory X and Theory Y

Douglas McGregor, a professor of management

introduced a theory of managerial style, referred to
as Theory X and Theory Y.

Theory X Theory Y
McGregor’s Theory X and Theory Y
Theory X is a managerial assumption that employees
dislike work, responsibility and accountability and must
be closely directed and controlled to be motivated to
perform.
Theory X managers are assumed to view the average
employee as:
▪ Disliking work and finding ways to avoid it as much as
possible.
▪ Responding to threats of punishment or control because
of the dislike of work.
▪ Avoiding responsibility because of lack of ambition.
▪ Wanting to be directed and have security.
McGregor’s Theory X and Theory Y

Theory Y is a managerial assumption that employees

want to be challenged, like to display creativity and
can be highly motivated to perform well if given some
freedom to direct to manage their own behavior.
The Theory Y manager assumes that the average
employee:
▪ Enjoys work and does not want to avoid it
▪ Wants to achieve organizational goals through self-directed
behavior
▪ Responds to rewards associated with accomplishing goals.
▪ Will accept responsibility
▪ Has initiative and can be creative in solving organizational
problems
▪ Is intellectually underutilized
Prime Activities of HRM

Planning, Recruiting
and Selection

Training and
Development

Compensation and
Benefit
Human Resource Planning

Human Resource Planning is the process of

analyzing an organization’s present and future
employment situation and developing a strategy
to meet an organization’s human resource needs.
Human Resource Planning

Job Analysis
This is the process of determining the tasks that
make up a job and the skills, abilities and
responsibilities needed to perform the job.
Job Description
Job description is a statement that furnishes
information about a job’s duties, technology,
conditions and hazards; based on data from job
analysis.
A written statement of what the jobholder does, how it
is done and why it is done is also known as Job
description.
Human Resource Planning

Job Specification
Job specification is a statement of the human
qualifications needed to perform a job; derived
from the job analysis
Job Evaluation
It is a process by which the relative values of
jobs within the organization are determined
Human Resource Planning

Job Analysis: Sector of job

Job Description: Rules and regulation

Job Specification: Qualification, education

experience
Recruitment

Steps taken to staff an organization with the

best qualified people.
Sources of Recruitment
Internal Sources: The organization’s current
employees
External Sources: Those sources outside of the
firm
Recruitment

Internal Sources: External Sources:

▪ Present Employees ▪ Advertisements
▪ Friends of Employees ❖ Newspapers
❖ Journals
▪ Former Employees ❖ Magazines
▪ Previous Applicants ❖ Blind Advertisements
(Company name is not
▪ Relatives identified)
▪ College/University
Recruitment
❖ Management Trainee
❖ Executives
Selection

The selection process is a series of steps

that starts with the initial screening and
ends with a decision to hire the person.
Selection

1. Initial Screening: check the minimum qualifications

2. Complete Applications: required complete
application and check with the job specifications
3. Employment Interview
⚪ Employment test
⚪ Background and reference checks
⚪ Physical examination
4. Decision to Hire
⚪ Conditional job offer
⚪ Permanent job offer
Training and Development

Training
Training is a continual process of helping
employees perform at a higher level. It may occur in
the workplace or at a special training facility, but
should always be supervised by training experts.
Training is generally associated with operating or
non-managerial employees.
Training and Development

Management Development
Management development refers to the process of
educating and developing selected personal so that they
have the knowledge, skills, attitudes and understanding
needed to manage in future position. Management
development is associated with managerial personal.
Compensation and Benefits

Compensation is pay or salary, typically monetary

payment for services provided as in an employment.

Direct Compensation: An employee’s base pay and

performance-based pay

Indirect Compensation: Extra benefits, paid leave

Compensation and Benefits

Wages: Financial rewards based on the number of

hours the employee works or the level of output
achieved/ number of units produced.

Commission: The payment to the employee of a fixed

amount or a percentage of the employee’s sales
Compensation and Benefits

Salary: a financial reward calculated on a weekly,

monthly or annual basis.

Bonuses: An addition to regular compensation for

exceptional performance.

Profit Sharing: Distributing a percentage of company

profits to the employees whose work helped to
generate those profits.
Compensation and Benefits

Benefits:
Non-wage and non-salary forms of compensation.
Such as participate in decision making, more
responsibilities, preferred office furnishings,
preferred lunch hours, assigned parking spaces,
business cards, own secretary, impressive titles etc.
THE END