Chapter

Human Resource Management

Bus-101
Section: 26
Instructor: SgS
 HRM: Vital to ALL Organizations

 Importance of employees to the success of any organization is the basis of

management.

 Human resource management: Function of attracting, developing, and

retaining employees who can perform the activities necessary to
accomplish organizational objectives.

 Goal of HRM:
1) Providing qualified, well-trained employees for the organization.
2) Maximizing employee effectiveness in the organization.
3) Satisfying individual employee needs through monetary
compensation, benefits, opportunities to advance, and job
satisfaction.
Human Resource Responsibilities
 Recruitment and Selection

HR managers select right workers who have necessary skills or have the ability to learn


Recruiting techniques continue to evolve as technology advances.


Internet recruiting or own web sites are quick, efficient, and inexpensive along with tradition methods of

recruiting (job fairs, personal reference, job ads)


monster.com, Facebook, LinkedIn or BDJOBS.COM


HR job’s to hire employees in conjunction with department managers or supervisors.

Can’t discriminate based on age, sex, religion, color or national origin

Equal employment opportunity (women, minorities, disabled applicants)
Recruitment & Selection…… (cont)


Must follow legal requirements or get exposed to risk of

litigation

Civil Rights Act or Equal Employment Opportunity


Hiring is a costly process for employers because firm

incurs costs for advertising job, interviewing,

conducting background checks, employment tests,

medical exams.
 Orientation and Training

Newly-hired employee often completes an orientation program

Inform employees about company policies regarding rights & benefits

Employee manuals: code of ethics or code of conduct

Describe programs

Training an opportunity to build skills & knowledge and to prepare for the new job


Types of Training Programs

On-the-job training - popular method of teaching the job duties allowing the employees to perform task under

guidance

Classroom and computer based training - lectures, conference, workshops or seminars

Management development – designed to improve technical or specialized knowledge and skills
 Evaluation: Performance Appraisals


Performance appraisal is the evaluation of and feedback on an employee’s job performance.


It includes assessment of attendance and meeting organization goals as well as job performance.


Some firms allow 360-degree performance review, a process that gathers feedback from a review panel that includes co-workers,

supervisors, team members, subordinates, and sometimes customers.


Performance review should meet following criteria’s:

Take place several times a year

Be linked to firm’s goal

Based on objective

Take place in a two-way conversation
 Employee Compensation

Compensation is how much employees are paid in money and benefits is one of the highly charged issues


An effective compensation system should attract well-qualified workers


Wages - compensation based on an hourly pay rate or the amount of output produced. Receive overtime.


Salary - compensation calculated on a periodic basis, such as weekly or monthly.


Most firms base compensation decisions on five factors:

1. What competing companies are paying

2. Government regulation

3. The cost of living

4. Company profits

5. Employee’s productivity
 Employee Benefits & Incentive Compensation

In addition to wages & salaries, firms provide benefits as part of the

compensation such as vacation, retirement plans , health insurance, etc.

Firms also try to motivate employees to excel by offering incentive

compensation
Costs for Employee Compensation
 Employee Separation

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.


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.


Downsizing - process of reducing the number of employees within a firm by eliminating jobs. It has negative effects:


Anxiety, health problems, and lost productivity among remaining workers


Expensive severance packages paid to laid-off workers


Outsourcing – transferring jobs from inside a firm to outside the firm


To save expenses and remain flexible, companies will try to outsource functions that are not part of their core business.
 Motivating Employees


Manager motivate employees to commit to their company & perform their best on the job


Motivation starts with good morale, the mental attitude of employees toward their employer and job.


High employee morale occurs in organizations where workers feel valued, heard, and empowered to contribute what they do

best.


Poor morale shows up through absenteeism, voluntary turnover, and lack of motivation.


Uses rewards and punishment to motivate:

Extrinsic Rewards: external such as pay, fringe, benefits & praise

Intrinsic Reward: feelings related to job such as feeling proud to achieve sales goal or meeting a deadline
 Theory of Motivation: Maslow’s Hierarchy of Needs


Maslow’s Hierarchy of Needs: people have five levels of needs that they seek to satisfy.


People’s needs depend on what they already posses.


A satisfied need is not a motivator; only needs that remain unsatisfied can influence behavior.


People’s 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
Maslow’s Hierarchy of Needs
 Job Design & Motivation

HR managers uses 3 ways to motivate employees through their jobs:


Job enlargement: job design that expands an employee’s responsibilities by increasing the number and

variety of tasks assigned to the worker


Job enrichment: involves an expansion of job duties that empowers an employee to make decisions and

learn new skills leading toward career growth


Job rotation involves systematically moving employees from one job to another.
 Managers’ Attitudes & Motivation


Manager’s attitude toward the employees greatly influence their motivation


Two assumptions managers make about employees:


Theory X: assumes that employees dislike work and try to avoid it whenever possible, so management must coerce them

to do their jobs. Hence, workers prefer instructions, avoid responsibility, take little initiative, and money & job security is

the only motivator.


Theory Y: assumes that the typical person actually likes work and will seek and accept greater responsibility.
•
Mangers believe that employees can think of creative ways to solve work-related problems.
•
Most people should be given the opportunity to participate in decision making.