8

1
Explain the role and responsibilities of human resource management.
2
Describe how recruitment and selection contribute to placing the right person in a job.
3
Discuss how orientation, training programs, and performance appraisals help companies develop their employees.
4
Describe how firms compensate employees through pay systems and benefit programs.
5
Discuss employee separation and the impact of downsizing and outsourcing.
6
Explain the different methods and theories of motivation.
7
Discuss the role of labor unions, the collective bargaining process, and methods for settling labormanagement disputes.

Human resource management - function of attracting, developing, and retaining employees who can 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.

Recruiting techniques continue to evolve as technology advances.
Internet recruiting is quick, efficient, and inexpensive.
Reach a large pool of job seekers – monster.com
Use social networking sites
HR must be creative in searching for qualified employees.
Businesses look both internally and externally.

Must follow legal requirements.
Civil Rights Act of 1964
American with Disabilities Act
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.

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 and feedback on 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.

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:
What competing companies are paying
Government regulation
The cost of living
Company profits
Employee’s productivity

Employee Benefits - additional compensation, such as vacation, retirement plans, profit-sharing, health insurance, gym memberships, child and elder care, and tuition reimbursement, paid entirely or in part by the company.
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 workers.
Retirement plans have become a big area of concern for businesses.

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, vacation days, and sick days.
56% of companies surveyed use paid time off
(PTO) programs.
More than ½ claim they have reduced unscheduled absences

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.
More than 70 percent of Generation Y professionals are concerned with balancing career with personal life

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.

Downsizing - process of reducing the number of employees within a firm by eliminating jobs
Downsizing has negative effects:
Anxiety, health problems, and lost productivity among remaining workers
Expensive severance packages paid to laid-off workers
A domino effect on the local economy
Outsourcing – transferring jobs from inside a firm to outside the firm
To save expenses and remain flexible, companies will try to outsource functions that are not part of their core business.
Although outsourcing might work on paper, the reality might be different.

Motivation starts with good employee morale, the mental attitude of employees toward their employer and job.
High employee morale occurs in organizations where workers feel valued, heard, and empowered to contribute what they do best.
Poor morale shows up through absenteeism, voluntary turnover, and lack of motivation.

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.
Physiological needs
Safety needs
Social (belongingness) needs
Esteem needs
Self-actualization needs

Hygiene Factors – result in satisfaction
Job Environment
Salary
Job Security
Personal Life
Working Conditions
Status
Interpersonal Relations
Supervision
Company Policies
Motivator Factors – can produce high levels of motivation if present
Achievement
Recognition
Advancement
The Job Itself
Growth Opportunities
Responsibility

Expectancy Theory – describes the process people use to evaluate the likelihood that their efforts will yield the results they want, along with the degree to which they want those results
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

Systematic and organized approach that allows managers to focus on attainable goals and to achieve the best results based on the organization’s resources.
MBO helps motivate individuals by aligning their objectives with the goals of the organization, increasing overall organization performance.
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

Job enlargement : job design that expands an employee ’s responsibilities by increasing the number and variety of tasks assigned to the worker
Job enrichment : involves an expansion of job duties that empowers an employee to make decisions and learn new skills leading toward career growth
Job rotation involves systematically moving employees from one job to another.

Two assumptions managers make about employees, according to psychologist Douglas McGregor:
Theory X : assumes that employees dislike work and try to avoid it whenever possible, so management must coerce them to do their jobs.
Theory Y : assumes that the typical person actually likes work and will seek and accept greater responsibility.
Most people can think of creative ways to solve work-related problems.
Most people should be given the opportunity to participate in decision making.
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.
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 belongs to labor unions.
1/3 of government workers, 8% of private sector

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.

Collective bargaining : process of negotiation between management and union representatives
Issues involved can include:
Wages
Work hours
Benefits
Union activities and responsibilities
Grievance handling and arbitration
Layoffs
Employee rights and seniority

Most labor-management negotiations result in a signed agreement without a work stoppage.
On average, 20 or fewer negotiations involve a work stoppage.
Mediation is the process of settling labor-management disputes through recommendations of a third party.
Arbitration adds a third party who renders a legally binding decision.

Union Tactics
Strikes - temporary work stoppage by employees until a dispute has been settled or a contract signed.
Picketing - workers marching in public protest against their employer.
Boycott - organized attempt to keep the public from purchasing the goods and services of the firm.
Management Tactics
Lockout - a management strike to put pressure on union members by closing the firm.

Membership and influence are declining, caused by a shift from manufacturing industries to information and service businesses.
8% of private-sector workers are union members, but that is down from 17% in 1983.
52% of union members are government employees.
Unions need to be more flexible and adapt to a global economy and diverse workforce.
Unions can recognize the potential for prosperity for all —management and union workers included.