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Chapter 9
Human Resource
Management &
Motivation
Human Resource
Management
Human resource management has the
function of attracting, developing, and
retaining sufficient numbers of qualified
employees to perform the activities
necessary to accomplish organizational
goals.
Large organizations have human resource
departments.
Human Resource Functions
Human Resource Recruitment
& Selection
Planning
Career
Management
Training,
Functions Development, &
Counseling
Compensatio
n & Benefits
Multi-Media Developed By Stephen M. Peters
Performance
Appraisal
Copyright © 1999 by Harcourt Brace & Company
All Rights Reserved
9-3
Recruitment and Selection
Typical process:
1. Advertise -Initial contact
2. Application form
3. Employment test
4. Interviews by human resource
department
5. Interview with supervisor
6. Background checks
7. Medical exam
8. Employment
Recruitment and Selection
continued
Legal requirements:
1. Cannot discriminate based on race,
age, religion, color, sex, or national
origin
2. Failure to comply with equal
employment opportunity legislation can
result in fines, penalties, & bad publicity
Orientation
Larger organizations have
employee manuals that
describe benefits, working
conditions and expectations.
Training
On-the-job training is a training
method that teaches an employee to
complete new tasks by performing them
under the guidance of an experienced
employee.
A management development
program provides training designed to
improve the skills and broaden the
knowledge of current and potential
managers.
Evaluation:
The Performance
Appraisal
 The performance appraisal
is a method of evaluating an
employee’s job performance by
comparing actual results to
desired outcomes.
Evaluation:
The Performance
Appraisal
Who evaluates:
1.Usually supervisors evaluate employees
2.Some firms use peer review
3.Some firms allow employees to review
supervisors and managers
4.The 360-degree review includes feedback
from co-workers, supervisors, managers, and
even customers. (new trend)
Compensation
Wages represent compensation
based on an hourly pay rate or
the amount of output produced.
Salary represents compensation
calculated on a weekly, monthly,
or annual basis.
Compensation
continued
Excessive high
wages and salaries
may make it difficult
for the organization
to be competitive.
Inadequate wages
can lead to high
employee turnover,
poor morale, and
inefficient
production.
Compensation
continued
Employee benefits are rewards such as
retirement plans, insurance, sick leave,
child care, and tuition reimbursement
provided entirely or in part at the
company’s expense. (average nearly 40% of
the payroll dollar)
 Flexible or cafeteria benefit plans
offer employees a range of options from
which they can choose the types of
benefits they receive.
Examples of Benefits
Health Insurance
Elect Benefits To Receive
Disability Insurance
Enhanced Child Care
Life Insurance
Flexible Schedules
Retirement Plans
Bank Of Paid Time Off
Sick Days
Flextime
Holidays
Compressed Work Week
Vacation
Job Sharing
Child & Elder Care
Tuition Reimbursement
Typical Employee Benefits
Vacation &
Other Time
Off 25%
Social Security,
Medicare,Worker’s Comp, &
Other Required Benefits 21%
mployer
ontributions To
ife Insurance 1%
Paid Rest
Periods 9%
ducational Assistance,
roduct Discounts,
Other Miscellaneous 6%
Multi-Media Developed By Stephen M. Peters
Health Insurance &
Other Health
Related Benefits
23%
Contributions To
Retirement & Other
Savings Plans 15%
Copyright © 1999 by Harcourt Brace & Company
All Rights Reserved
9-10
Compensation
continued
Flexible work plans are
benefits that allow
employees to adjust their
working hours and places of
work to accommodate their
personal lives.
Flexible Work Plans
Flextime allows employees to set their own hours
within constraints set by the firm.
The compressed workweek allows employees to
work the regular number of required hours in fewer
than the typical 5 days.
A job sharing program allows two or more
employees to divide the tasks of one job.
A home-based work program or telecommuting
allows employees to perform their jobs from home
instead of at the workplace.
Terminating Employees
Employees who leave voluntarily are often
asked to participate in an exit interview to
find out the reasons they left.
Employers may terminate employees for:
Poor job performance
Negative attitudes toward work and coworkers
Misconduct such as excessive tardiness or
absenteeism, dishonesty or sexual
harassment.
Downsizing
Downsizing is the process of reducing
employees within a company by
eliminating jobs.
Usually to reduce costs and streamline the
organizational structure.
May be done by offering early retirement
plans, voluntary severance programs, and
opportunities for internal reassignment to
different jobs.
Outsourcing
Outsourcing is relying on outside
specialists to perform functions previously
performed by company employees.
Allows firm to focus on what they do best
May negotiate the best price among
competing bidders
Motivating Employees
Employers that rank high on the best places
to work list share 3 R’s:
1. Employees are given responsibility for
their jobs.
2. Rewards are equitable.
3. Employees know they have rights.
Maslow’s Hierarchy of Needs
Self
Self Actualization
Actualization
Esteem Needs
Social NeedsNeeds
Esteem
Safety Needs
Social
Needs
Physiological
Safety Needs
Multi-Media Developed By Stephen M. Peters
Copyright © 1999 by Harcourt Brace & Company
All Rights Reserved
9-13
Physiological
Copyright © 1999 by Harcourt Brace & Company
Assumptions of
Maslow’s Hierarch of Needs
1. People are wanting animals whose
needs depend on what they
already possess.
2. A satisfied need is not a motivator;
only those needs that have not been
satisfied can influence behavior.
3. People’s needs are arranged in a
hierarchy of importance; one one
need has been at least partially
satisfied, another emerges and
demands satisfaction.
Maslow’s Hierarch of Needs
Physiological needs - basic needs: food, shelter, and
clothing. (wages & work environment)
Safety needs - physical and economic protection.
(retirement plans, job security, safe work place)
Social needs - acceptance by others. (good relations with
co-workers, managers, group activities)
Esteem needs - receiving attention, recognition, and
appreciation from others. (recognition for job performance)
Self-actualization needs drive people to seek
fulfillment, realizing their own potential fully using
their talents and capabilities. (challenging work
assignments)
Job Design Motivation
Job enlargement expands the
employee’s job by increasing the number
and variety of tasks they perform.
Job enrichment gives employees more
authority in planning their work, deciding
how it should be done, and learning more
skills to help them grow.
Douglas McGregor’s
Theory
A student of Maslow
Studied motivation from the
perspective or how managers view
employees
Coined the terms theory X and theory
Y as labels for the assumptions that
different managers make
about worker behavior.
Assumptions for Management Styles
Theory X
Theory Y
Employees dislike work Employees view work
as a normal activity as
& will avoid it
natural as play or rest
Employees must be
coerced, controlled, or Employees will selfdirect in achieving
threatened to achieve
organizational
organizational
objectives
objectives
Employees accept and
Employees avoid
want to take
responsibility & want
responsibility for work
direction
Theory Z
Theory Z views involved workers as the
key to increased productivity for the
company and an improved quality of work
life for the employees.
–Participative management style
–Blends American and Japanese
management methods.
Human Resource Concerns
for the 21st Century
Workforce getting older
Increase in number of disabled workers
More employees single parents or
couples without children
Increased use of contingent workers
More diversity
Increased use of work teams
Expanding employee benefits