18 Managing Human Resources Section 18.1 Developing and Keeping Human Resources Section 18.2 Motivating Employees Glencoe Entrepreneurship: Building a Business SECTION 18.1 Developing and Keeping Human Resources Section Objectives • Identify the components of human resource management. Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business SECTION 18.1 Developing and Keeping Human Resources The Main Idea People are the most important resource of a small business. The employees that are recruited, hired, trained, and kept have a major impact on a company’s performance. Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business SECTION 18.1 Developing and Keeping Human Resources Content Vocabulary human resources human resource management labor union educational activities Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business developmental activities cost effective employee complaint procedure Pregnancy Discrimination Act SECTION 18.1 Developing and Keeping Human Resources Human Resource Management The human resources of a company represent one of its largest investments. Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business human resources the people employed in a business, commonly referred to as personnel SECTION 18.1 Developing and Keeping Human Resources Human Resource Management The primary goals of human resource management are to facilitate performance and improve productivity. Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business human resource management the part of business concerned with recruiting and managing employees Human Resource Management Components of Human Resource Management Recruiting and screening employees Managing union dealings Overseeing employee training and development Overseeing pay and benefits Resolving day-to-day problems Ensuring equal opportunity Handling employee termination 7 SECTION 18.1 Developing and Keeping Human Resources Recruiting and Screening Employees You can find new employees by: • • • recruiting from within recruiting from competitors recruiting with ads, job boards, employment agencies, and word of mouth Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business SECTION 18.1 Developing and Keeping Human Resources Managing Dealings with Unions Labor unions strengthen workers’ ability to bargain for wages, benefits, working conditions, and other concerns. Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business labor unions organizations that represent workers in their dealings with employers SECTION 18.1 Developing and Keeping Human Resources Overseeing Training and Development Businesses should include educational activities and developmental activities to employee training. Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business educational activities developmental activities actions, such as an a human industry relations workshop, conference, that prepare that prepare employeestoforlead managers advancing the company in the organization into the future SECTION 18.1 Developing and Keeping Human Resources Overseeing Training and Development After your training program is up and running, you should evaluate it to see how cost effective it is and whether the program’s objectives were achieved. Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business cost effective economically worthwhile in terms of what is achieved for the amount of money spent Overseeing Training and Development On-the-job training Vestibule training Conferences and seminars Job rotation Training and Development Techniques Mentoring Web-based instruction Classroom teaching Coaching 12 SECTION 18.1 Developing and Keeping Human Resources Resolving Day-to-Day Problems Employee conflicts can be resolved in an objective manner when an employee complaint procedure is in place. Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business employee complaint procedure a formal procedure for handling employee complaints, usually in writing and distributed to employees SECTION 18.1 Developing and Keeping Human Resources Ensuring Equal Opportunity As an employer and manager, you must ensure that employees are not discriminated against. One law you should know about is the Pregnancy Discrimination Act. Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business Pregnancy Discrimination Act a federal law that requires that employers treat their pregnant employees like all other employees when determining benefits SECTION 18.1 Developing and Keeping Human Resources Handling Problem Employees and Termination Sometimes employees do not work out, or they perform below expectations. In those instances, you may have to resort to professional counseling or assistance, disciplinary action, or termination. Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business SECTION 18.1 Developing and Keeping Human Resources After You Read 1. Identify the components of human resource management. Human resource management includes recruiting and screening employees, managing dealings with unions, overseeing employee training and development, overseeing pay and benefits, resolving day-to-day problems, ensuring equal opportunity, and handling employee terminations. Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business SECTION 18.2 Motivating Employees Section Objectives • • • • Explain how managers influence motivation. Describe ways to maximize employee performance. Explain the importance of delegation. Explain how to assess motivational techniques used to increase performance levels. Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business SECTION 18.2 Motivating Employees The Main Idea One of an entrepreneur’s tasks is to motivate employees. Employees who are motivated produce more and better work. Chapter 18 Managing Human Resources Section 18.2 Motivating Employees Glencoe Entrepreneurship: Building a Business SECTION 18.2 Motivating Employees Content Vocabulary Theory X Theory Y hygiene factors motivating factors Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business telecommuting family leave flextime performance evaluation SECTION 18.2 Motivating Employees How Managers Influence Motivation Communication is a key factor in employee motivation. How employees are regarded and treated also affects their motivation. Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business SECTION 18.2 Motivating Employees Assumptions Managers Make In The Human Side of Enterprise, Douglas McGregor identifies two sets of assumptions that managers make about employees: Theory X and Theory Y. Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business Theory Y X the belief that employees are basically lazylike responsible, andtoneed work,constant and supervision want intrinsic rewards SECTION 18.2 Motivating Employees Hygiene Factors Versus Motivating Factors According to Frederick Herzberg, two types of factors motivate workers: hygiene factors and motivating factors. Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business hygiene factors motivating factors factors that motivate do not improve employees, situations, such as achievement, but keep situations from getting responsibility, recognition, worse advancement, growth, and the reward from doing the work itself SECTION 18.2 Motivating Employees Maximizing Employee Performance To improve employee motivation: • • • • • • • • Provide meaningful work. Allow scheduling flexibility. Involve employees in decision making. Give recognition. Provide performance evaluations. Reward performance. Delegate responsibility. Evaluate employee motivational techniques. Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business SECTION 18.2 Motivating Employees Provide Meaningful Work Employees who are motivated by their work related to it in a special way. They take pride in it. To prompt such feelings, a job must be meaningful. If your employees’ jobs are not meaningful, consider redesigning those jobs. Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business SECTION 18.2 Motivating Employees Allow Scheduling Flexibility Flexible schedule techniques include: • • • telecommuting family leave flextime Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business SECTION 18.2 Motivating Employees Allow Scheduling Flexibility Telecommuting for employees has been made possible because of computers, communications technology, and overnight delivery services. Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business telecommuting the act of performing some or all of a job away from the business SECTION 18.2 Motivating Employees Allow Scheduling Flexibility Large companies must offer family leave under federal law. Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business family leave a policy that allows employees to take time off work to attend to significant personal events, such a births, deaths, and family illness, without fear of job loss SECTION 18.2 Motivating Employees Allow Scheduling Flexibility Businesses that offer flextime allow employees to adjust their work schedules to suit their personal needs. Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business flextime a policy that allows employees to choose the work hours and days that are most effective for their personal lives SECTION 18.2 Motivating Employees Involve Employees in Decision Making Let employees make suggestions about where the organization is going and what their roles will be. Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business SECTION 18.2 Motivating Employees Involve Employees in Decision Making Using quality circles (described in Chapter 16) is another means of involving employees in decision making. Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business SECTION 18.2 Motivating Employees Provide Performance Evaluations A performance evaluation can be motivational when suggestions for improvement present the employee with something to strive for, a measure of future accomplishment. Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business performance evaluation the process of judging how well an employee has performed the duties and responsibilities associated with a job, usually for the purpose of contract renewal or promotion SECTION 18.2 Motivating Employees Delegating Responsibility When you delegate responsibility, you give an employee the authority to and responsibility for carrying out some of your work. Delegating responsibility gives you more time to work on other things and also motives the employee. Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business SECTION 18.2 Motivating Employees Evaluating Employee Motivational Techniques Motivational techniques that require a large commitment of time and resources should be evaluated to determine if they are: • • • • working as a motivator in need of revision worth the cost, and are able to be done a better way. Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business SECTION 18.2 Motivating Employees After You Read 1. Explain how managers influence motivation. Managers influence motivation by communicating with their employees. Managers must communicate goals and objectives if they expect employees to meet them. Managers also influence employee motivation by the way they treat their employees. Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business SECTION 18.2 Motivating Employees After You Read 2. Explain ways to maximize employee performance. Ways to maximize employee performance include providing meaningful work, allowing scheduling flexibility, involving employees in decision making, giving recognition, providing performance evaluations, and rewarding performance. Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business SECTION 18.2 Motivating Employees After You Read 3. Explain the importance of delegation. Delegation allows an owner to work on other things, motivates the employee, shows confidence in the employee, and prepares the employee for more responsibilities. Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business SECTION 18.2 Motivating Employees After You Read 4. Explain how to assess motivational techniques used to increase performance levels. Motivational techniques that require a large commitment of time and resources, such as awards banquets, should be formally assessed to determine whether they are working as motivators, whether they need revision, whether they are worth the cost, and whether they can be done a better way. Chapter 18 Managing Human Resources Glencoe Entrepreneurship: Building a Business 18 Managing Human Resources End of Chapter 18 Section 18.1 Managing Human Developing and Keeping Human Resources Resources Section 18.2 Motivating Employees Glencoe Entrepreneurship: Building a Business