Human Resource Management, Motivation, and Labor-Management Relations

Human Resource Management, Motivation, and Labor-Management Relations

Human Resource Management Is Vital
to All Organizations

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

n  Human resource managers responsible for:

üDeveloping specific programs and activities

üCreating a work environment that generates employee satisfaction and efficiency

n  Rules for Clerks, 1905

Human Resource Management Is Vital
to All Organizations

Professional Employer Organizations (PEOs)—company that helps small and mid-sized firms with a wide range of human resource services including hiring and training employees, administering payroll and benefits programs, handling workers’ compensation and unemployment insurance, and maintaining compliance with labor laws

Human Resource Planning

Human Resource Planning

Human Resource Managers:

üDevelop staffing plans based on the organization’s competitive strategies

üResponsible for adjusting their company’s workforce to meet requirements of:

w Expanding in new markets

w Reducing costs

w Adapting to new technology

üFormulate long and short-term plans to provide needed employees

Recruitment and Selection

n  Human resource managers strive to match applicants’ skills with organizational needs

üFinding Qualified Candidates

üSelecting and Hiring Employees

n  Steps in the Recruitment and Selection Process

Recruitment and Selection

Finding Qualified Candidates

üAccess internal and external sources

üConsider internal employees first

üLook outside if qualified candidates not available internally

Recruitment and Selection

Selecting and Hiring Employees

üMust follow the requirements set by federal and state law

üSome firms try to screen out employees by requiring drug testing or employment tests for job applicants

w Employment at will—practice that allows the employment relationship to begin or end at any time at the decision of either the employee or the employer for any reason

Orientation, Training, and Evaluation

n  Training builds skills and knowledge that will prepare employees for new job opportunities

üNew Horizons:  Communicating the Importance of Training

Orientation, Training, and Evaluation

On-the-job training prepares employees for job duties by allowing them to perform the tasks under the guidance of experienced employees

Classroom and Computer-Based Training Forms of classroom instruction such as lectures, conferences, audiovisual aids, programmed instruction, and special machines to teach employees everything from basic math and language skills to complex, highly skilled tasks

Orientation, Training, and Evaluation

n  Management development program:  training designed to improve the skills and broaden the knowledge of current and potential executives


Orientation, Training, and Evaluation

Performance Appraisals—evaluation of an employee’s job performance by comparing actual results with desired outcomes.

üBased on this evaluation, managers make objective decisions about compensation, promotions, additional training needs, transfers, or firings

ü360-degree performance review:   process that gathers feedback from a review panel of about 8 to 12 people, including co-workers, team members, subordinates, and sometimes customers


Wage—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.

Living wage


n  Most firms base their compensation policies on five factors:

üSalaries and wages paid by others

üGovernment legislation

üCost of living

üFirm’s ability to pay

üWorker productivity

n  Four Forms of Incentive Compensation


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.

üSome benefits, e.g. Social Security contributions, are required by law


Flexible benefit plan (cafeteria plan)—  benefit system that offers employees a range of options from which they can choose they types of benefits they receive

Flexible work plan—employment that allows personnel to adjust their working hours and places of work to accommodate their personal lives


üCompressed workweek

üJob Sharing

üHome-based work program

Employee Separation

n  Employer or employee can take the initiative to terminate employment

üExit interview—conversation designed to find out why an employee decided to leave

Downsizing—process of reducing the number of employees within a firm by eliminating jobs.

Employee Separation

Outsourcing—practice of contracting out work previously performed by company employees.

üComplements today’s focus on business competitiveness and flexibility

Using Contingent Workers

üContingent worker—employee who works part time, temporarily, or for the period of time specified in a contract.

n  Current Want-Ads for Contingent Workers

Motivating Employees

n  Effective human resource management makes important contributions to employee motivation

Morale—mental attitude of employees toward their employer and jobs.

Motivating Employees

Need—simply a lack of some useful benefit

Motive—inner state that directs a person toward the goal of satisfying a felt need

The Process of Motivation

Motivating Employees

Maslow’s Hierarchy of Needs Theory

üAccording to the theory, people have five levels of needs that they seek to satisfy:

w Physiological

w Safety

w Social

w Esteem

w Self-actualization

Motivating Employees

Job Design and Motivation

üJob enlargement—job design that expands an employee’s responsibilities by increasing the number and variety of tasks they entail.

üJob enrichment—change in job duties to increase employee’s authority in planning their work, deciding how it should be done, and learning new skills.

Motivating Employees

n  Manager’s Attitudes and Motivation
Worker  motivation is influenced by the attitudes that managers display towards employees

üTheory X—assumption that employees dislike work and will try to avoid it

üTheory Y—assumption that employees enjoy work and seek social, esteem, and self-actualization fulfillment

üTheory Z—assumption that employee involvement is key to productivity and quality of work life

n  Theory Z Management:  A Blend of American and Japanese Methods

Union-Management Relations

Development of Labor Unions

üLabor Unions—group of workers who have banded together to achieve common goals in the areas of wages, hours, and working conditions.


n  The World’s Tallest Roller Coaster: Union-Made at Cedar Point Amusement Park, Sandusky, OH

n  Labor Legislation