Human Resource Management, Motivation, and Labor-Management Relations Chapter 9 Human Resource Management, Motivation, and Labor-Management Relations

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

Human Resource Responsibilities

Recruitment & Selection HR must be creative in searching for qualified employees. Businesses look both internally and externally. Recruiting techniques continue to evolve as technology advances e.g. Online job portals such as bdjobs.com or prothom-alojobs.com.

Selecting and Hiring Employees Must follow legal requirements. Equal Employment Opportunity regulations. Failure to follow these exposes company to risk of litigation. Hiring is a costly process for employers because firm incurs costs fro advertising job openings, interviewing, conducting background checks, employment checks and medical exams. Some employers require employment tests.

Orientation and 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

Performance Appraisals Performance appraisal - evaluation of an employee’s job performance Some firms conduct (i) peer reviews while other firms allow employees to (ii) review their supervisors and managers. May conduct a (iii) 360-degree performance review, a process that gathers feedback from a review panel that includes co-workers, supervisors, team members, subordinates, and sometimes customers. Regardless of the method used to evaluate job performance, to be effective it must be fair and consistent.

Compensation 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: Salaries and wages paid by other companies that compete for the same people Government legislation, including the federal, state, or local minimum wage The cost of living The firm’s ability to pay Worker productivity

Incentive 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. 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. Necessary because poor performers lower productivity and employee morale. Employers must carefully document reasons when terminating employees.

Motivating Employees Employee motivation is the key to effective management. 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

Maslow’s Hierarchy of Needs Theory Maslow’s 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. Human needs are arranged in a hierarchy of importance; once they satisfy one need, at least partially, another emerges and demands satisfaction. (i) Physiological needs – basic human needs such as food, shelter, clothing (ii) Safety needs – refers to needs for physical and economic protection (iii) Social (belongingness) needs – need for acceptance by family, friends, peers, colleagues (iv) Esteem needs – need for receiving attention, recognition and appreciation (v) Self-actualization needs – these needs drive people to seek fulfillment, realizing their own potential and fully using their talents and capabilities.

Maslow’s Hierarchy of Needs Theory

Job Design & Motivation Job enlargement: job design that expands an employee’s 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. Many managers have used job enlargement and job enrichment as strategies to motivate employees. The strategies improve employee productivity and morale.

Job Design & Motivation Many managers have used job enlargement and job enrichment as strategies to motivate employees. The strategies improve employee productivity and morale.