Human Resource Management, Motivation, and Labor- Management Relations docx

Vital to All Human resource management - function of attracting, developing, and retaining enough qualified employees to perform the activities necessary to accomplish organizational ob

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Human Resource Management, Motivation, and Labor-Management Relations

Chapter 9

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.

Outline the methods employers

use to compensate employees.

Discuss employee separation and the impact of downsizing and

outsourcing.

Explain how Maslow’s of-needs theory, goal setting, job design, and managers’ attitudes relate to employee motivation.

hierarchy-Summarize the role of labor unions and the tactics of labor-management conflicts.

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

Vital to All

Human resource management - function of attracting, developing, and retaining enough qualified employees to perform the activities necessary to accomplish organizational

objectives Three main objectives:

Human Reso urce Responsibilit ies

• 25% of human resource professionals report a

shortage of job candidates with degrees in science, engineering, technology and mathematics.

• 78 million Baby Boomers will retire with only 46

million Generation X workers to replace them.

• HR must be creative in searching for qualified

employees.

• Businesses look both internally and externally.

Recruitment &

Selection

• 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

• Hiring is a costly process for employers

• Some employers require employment tests

• Performance appraisal - evaluation of an

employee’s job performance

• Some firms conduct peer reviews while other firms allow employees to review their supervisors and

managers.

• May conduct a 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 Appraisals

• 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:

1) Salaries and wages paid by other companies that compete

for the same people 2) Government legislation, including the federal, state, or local

minimum wage 3) The cost of living 4) The firm’s ability to pay 5) Worker productivity

Compensatio

n

Incentive

Compensatio n

• Employee Benefits - Rewards such as retirement plans, health insurance, vacation, and tuition reimbursement provided for employees either entirely or in part at the company’s expense

• 30% of total employee compensation

• 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

• Employees are provided a range of options from

which they can choose.

– Medical, dental, vision, life and disability insurance

• Many companies also offer flexible time off policies instead of establishing a set number of holidays,

vacations days and sick days.

• 56% of companies surveyed use paid time off (PTO) programs.

– More than ½ claim they have reduced unscheduled

absences

Flexible

Benefits

• Allow employees to adjust their working hours and places of work to accommodate their personal needs.

• Flextime allows employees to set their own work hours within

constraints specified by the firm

• A compressed workweek allows employees to work the regular

number of weekly hours in fewer than the typical five days

• A job sharing program allows two or more employees to divide the

tasks of one job

• A home-based work program allows employees, or

telecommuters, to perform their jobs from home instead of at the

workplace

– Nearly 75% of the U.S workforce will soon have the ability to

telecommute from home—or almost anywhere else.

Flexible Wor k

• 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 or sexual harassment

– Necessary because poor performers lower productivity and

employee morale

– Employers must carefully document reasons when terminating

employees.

Employee Separation

• Downsizing - process of

reducing the number of

employees within a firm by

eliminating jobs

• Downsizing doesn’t guarantee

improvements or cost savings

• Devastating impact on employee

morale

• Encourages employees to put

individual career success ahead

of company loyalty

Downsizing/

Outsourcing

• Outsourcing - contracting with

another business to perform tasks or functions previously handled by internal staff

members

• Focus on business competitiveness and flexibility

• Get best price among competing bidders while avoiding long-term costs of in-house operations

• 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

Motivating

Employees

• 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

• People’s needs are arranged in a hierarchy of importance; once they satisfy one need, at least partially, another emerges and demands satisfaction

Expectancy Theory

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.

• Goal: target, objective, or

result that someone tries to

accomplish

• Goal-setting theory - people

will be motivated to the extent

to which they accept specific,

challenging goals and receive

feedback that indicates their

progress toward goal

achievement

Goal-Setting

Theory

• Systematic and organized approach that allows

managers to focus on attainable goals and achieve the

best results.

• MBO helps motivate individuals by aligning their

objectives with the goals of the organization.

• MBO Principals:

– A series of related organizations, goals, and objectives

– Specific objectives for each individual

– Participative decision making

– Set time period to accomplish goals

– Performance evaluation and feedback

Objective

Job enlargement: job design that expands an employee’s

responsibilities by increasing the number and variety

of tasks assigned to the worker.

Job Design &

Motivation

Job enrichment: change in job duties to increase

employees’ authority in planning their work, deciding how

it should be done, and learning new skills.

• Two assumptions manager make about employees,

according to psychologist Douglas McGregor:

• Theory X: employees dislike work and try to avoid it

whenever possible; managers must coerce or control them

or threaten punishment to achieve the organization’s goals

• Theory Y: typical person likes work and learns to accept

and seek responsibilities; managers assume creative people solve work-related problems

• 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

Managers’

Attitudes an d Motivation

• Labor union: group of workers who have banded

together to achieve common goals in the areas of

wages, hours, and working conditions.

• Found at local, national, and international levels.

• The organized efforts of Philadelphia printers in 1786 resulted in the first U.S minimum wage - $1 a day.

• 12% of the nation’s full-time workforce belong to

labor unions.

Managemen t

Labor-Relations

• National Labor Relations Act of 1935 (Wagner 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; outlawed child labor

• Taft-Hartley Act of 1947 (Labor-Management Relations Act) -

limited unions’ power by prohibiting a variety of unfair practices,

including coercing employees to join unions and coercing employers

to discriminate against employees who are not union members

• Landrum-Griffin Act of 1959 (Labor-Management Reporting and

Disclosure Act) - amended the Taft-Hartley Act to promote honesty

and democracy in running unions’ internal affairs

Labor Legisla tion

• Collective bargaining: process of negotiation between

management and union representatives for the purpose of arriving at mutually acceptable wages and working conditions for employees

Issues involved can include:

 Wages

 Work hours

 Benefits

 Union activities and responsibilities

 Grievance handling and arbitration

 Layoffs

 Employee rights and seniority

The Collectiv e

Bargaining P rocess

• Most labor-management

negotiations result in a signed

agreement without a work

• Arbitration adds a third-party who

renders a legally binding decision

Settling Labo r Managemen t

Disputes

Competitive Tactics

Union Tactics

• Strikes - temporary work stoppage by employees until a

dispute has been settled or a contract signed.

• Picketing - workers marching at the entrances of the

employer’s business as a public protest against some

management practice.

• Boycott - organized attempt to keep the public from

purchasing the products of a firm.

Management Tactics

• Lockout - a management strike to put pressure on union

members by closing the firm.

The Future o f Labor

Unions

 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.

 Unions need to appeal to a wider range of workers

 Unions need to work in partnership with management