PowerPoint to accompany Chapter 2 Engaging and motivating employees and managing organisational change

Copyright ©2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – / Härtel l/Human Resource Management/2nd edition) Lecture objectives  Motivating employees  Positive leaders & positive work environments  Psychological contract  Motivating during times of change  Emotional intelligence  CHRM decision-making framework in action  Conclusion

Copyright ©2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – / Härtel l/Human Resource Management/2nd edition) Motivating employees  Work Motivation is defined as the stimulation of effort required to achieve and maintain organisational goals  No two people are alike  Unique values, attitudes, beliefs, strengths, expectations and ideas  Unlike other resources (financial and technical), human resources are very difficult to predict  Management must direct employee behaviour towards organisational goals  Understanding why people work is essential to this task

Copyright ©2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – / Härtel l/Human Resource Management/2nd edition) Motivating employees  Positive leaders: work with employees’ strengths, quickly address negative behaviours that may arise, as part of promoting a PWE.  Positive work environment (PWE): where employees feel supported and fairly rewarded, have self-efficacy and integrity, and perceive an environment of trust and organisational justice.

Copyright ©2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – / Härtel l/Human Resource Management/2nd edition) Motivating employees through HRM  Intrinsic factors  Soft factors (e.g., friendly work environment)  Extrinsic factors  Hard factors (e.g., money, status, big office) A balance between the two is generally preferred

Copyright ©2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – / Härtel l/Human Resource Management/2nd edition) Hard and Soft HRM paradox  Hard and soft HRM reflect focus on ‘managerial control strategies’ versus the ‘nature of people’  Hard HRM  Humans are viewed as costs (McGregor’s Theory X)  Soft HRM  Humans are viewed as people (Theory Y)  A combination of the two may be used, although soft HRM is preferred as it values people as an organisation’s most valuable assets.

Copyright ©2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – / Härtel l/Human Resource Management/2nd edition) Integration of hard and soft HRM

Copyright ©2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – / Härtel l/Human Resource Management/2nd edition) Theories of motivation  Traditional views of motivation were based on scientific management and later on human relations  Content theories: Humans have certain wants and needs that direct behaviour  Process theories: Highlight thought patterns that underlie decisions of whether or not to engage in certain behaviour  Be aware of limitations of each theory

Copyright ©2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – / Härtel l/Human Resource Management/2nd edition) Maslow’s hierarchy

Copyright ©2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – / Härtel l/Human Resource Management/2nd edition) Psychological contracts and motivation  Psychological contracts: intangible, informal contracts that the employee perceives constitute their employment relationship  Transactional  Relational  Ideology infused  Psychological contracts can impact upon employees’ discretionary behaviours (and their motivation to work)

Copyright ©2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – / Härtel l/Human Resource Management/2nd edition) HR ethics, psychological contracts and motivation  Deontological theory: Business is ethical when treating people with respect is the goal.  Utilitarian theory: Business is ethical when people are the means to maximise positive business consequences for the majority of stakeholders (e.g. shareholders)  Stakeholder theory: business is ethical when all stakeholders mutually benefit (e.g. employees, shareholders, customers, suppliers, unions and the local community)

Copyright ©2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – / Härtel l/Human Resource Management/2nd edition) Organisational justice perceptions  Distributional justice: Justice perceptions regarding the fairness of the distribution of resources within the organisation  Procedural justice: Justice perceptions regarding the procedures that are used within the organisation  Interactional justice: Justice perceptions regarding interpersonal interactions (e.g. honesty, politeness, and dignity)  Especially critical in time of constant changes

Copyright ©2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – / Härtel l/Human Resource Management/2nd edition) Diversity  Diverse workplaces (e.g. race, gender, sexual orientation, age, disabilities, lifestyle and values) Key cultural orientations:  Individualists: typically associated with Western cultures such as Australia, U.S. and NZ (Hofstede, 1980); satisfying individual goals  Collectivists: typically associated with Eastern cultures such as China, Thailand and Japan (Hofstede, 1980); seek to benefit the group and community

Copyright ©2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – / Härtel l/Human Resource Management/2nd edition) Motivation during times of change  Organisational change: any alteration which causes a shift in the status quo, affecting the structure and resources of an organisation  Organisational change affects the ability to engage and motivate employees  Employee motivation levels may change at any time as can the focus of motivation (e.g., productive vs. counterproductive behaviours)  Continual monitoring is necessary

Copyright ©2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – / Härtel l/Human Resource Management/2nd edition) Types of organisational change  Planned: Any deliberate, structured execution of a shift in the status quo  Unplanned: Unanticipated change which is generally forced upon the company  Incremental: A series of small changes  Radical: Large-scale and drastic change. There are five stages of radical change:  Planning, enabling, launching, catalysing and maintaining

Copyright ©2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – / Härtel l/Human Resource Management/2nd edition) HRM strategies for change  Change success depends a great deal on the attitude that an organisation adopts towards its employees during the change process.  Change initiatives that adopt a caring attitude towards employees, together with a concern for economic results tend to be more successful than initiatives that simply focus on economic results.  Communication, Voice, and Justice  Cultivation of a culture of emotional awareness (e.g. emotional intelligence)

Copyright ©2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – / Härtel l/Human Resource Management/2nd edition) The CHRM decision-making framework

Copyright ©2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – / Härtel l/Human Resource Management/2nd edition) Step 1 Screening HR-environmental factors  Monitor/analyse data (past, present and future): e.g. Unfriendly CEO and senior management in the past; redundancies  Internal/organisational environment: e.g. Diversity-closed culture (gender bias?)  External environment: e.g. Stricter Airline Regulations since 2001

Copyright ©2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – / Härtel l/Human Resource Management/2nd edition) Step 2 Detect HR potential problem or opportunity  Lack of employee motivation  Low absenteeism and high turnover  Gender discrimination claims

Copyright ©2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – / Härtel l/Human Resource Management/2nd edition) Step 3 Verify /falsify potential problem or opportunity  Motivational factors  Management style  Redundancy effects

Copyright ©2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – / Härtel l/Human Resource Management/2nd edition) Step 4 Devise plan and success criteria  Change the management style to develop respect for and trust from employees  Ask employees what motivates them to work (learn about their values)  Identify employees’ thoughts, fears and concerns relating to the redundancies  Identify and address areas where employees perceive discrimination

Copyright ©2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – / Härtel l/Human Resource Management/2nd edition) Step 5 Implement the plan  Develop an employee motivation, perceived discrimination and redundancies related questionnaire within 4 weeks  Have employees answer the questionnaire within the following 2 weeks  Once the questionnaire content is analysed, change management styles to respond to needs in the areas of perceived gender discrimination, redundancy effects and motivation

Copyright ©2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – / Härtel l/Human Resource Management/2nd edition) Step 6 Evaluate against success criteria  Distribute the questionnaire on an annual basis and examine trends  Identify percentage of reduction in employee absenteeism, turnover and discriminatory claims

Copyright ©2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – / Härtel l/Human Resource Management/2nd edition) Conclusion  Engaging and motivating employees is an important part of the SHRM process  People work (and are motivated) for different reasons  Positive leaders, psychological contracts and cultural orientations are all critical in motivating and engaging employees in their work  Organisational change can impact on employee motivation and behaviour  HR managers must continually monitor the workplace

Copyright ©2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – / Härtel l/Human Resource Management/2nd edition) The Psychological Contract from two perspectives – leader and employee  nc&feature=related  &feature=related  Models of Motivation m3o&feature=related