> > > > > > > >Chapter 8

Motivating people & labor

relations
Human resource management - function of
attracting, developing, and retaining enough
qualified employees to perform the activities
necessary to accomplish organizational
objectives. Three main objectives:

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.
 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
Management Development
 Performance appraisal - evaluation of an
employees 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.
 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
3) The cost of living
4) The firms ability to pay
5) Worker productivity
 Employee Benefits - Rewards such as retirement plans,
health insurance, vacation, and tuition reimbursement
provided for employees either entirely or in part at the
companys expense
Flexible benefits
Flexible work
 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 homeor almost anywhere else.
 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.
 Downsizing - process of
reducing the number of
employees within a firm by
eliminating jobs
Devastating impact on employee
morale
Encourages employees to put
individual career success ahead Get best price among
of company loyalty
Outsourcing - contracting with
another business to perform
tasks or functions previously
handled by internal staff
members
Focus on business
competitiveness and flexibility
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
 Maslows 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.
Peoples 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
Hygiene Factors Motivator Factors
Job Environment Achievement
Salary Recognition
Job Security Advancement
Personal Life The job itself
Working Conditions Growth Opportunities
Status Responsibility
Interpersonal Relations
Supervision
Company Policies
Expectancy Theory the Equity Theory
process people use to individuals perception of fair
evaluate the likelihood their and equitable treatment.
effort will yield the desired
outcome and how much
they want the outcome.
 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.
 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 organizational goals, and objectives
Specific objectives for each individual
Participative decision making
Set time period to accomplish goals
Performance evaluation and feedback
Job enlargement: job design that expands an employees
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.
 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 organizations 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.
 Labor union: group of workers who have banded
together to achieve common goals in the areas of
wages, hours, and working conditions.
 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