Managing Human Resources Back to Table of Contents Managing Human Resources Chapter 18 Managing Human Resources 18.1 Developing and Keeping Human Resources 18.2 Motivating Employees 2 Managing Human Resources 18.1 Identify the components of human resource management. Section 18.1 Developing and Keeping Human Resources 3 Managing Human Resources 18.1 People are the most important resource of a small business. Employees have a big effect on a company’s performance. Section 18.1 Developing and Keeping Human Resources 4 Managing Human Resources 18.1 human resources human resource management labor union educational activities Section 18.1 Developing and Keeping Human Resources developmental activities cost effective employee complaint procedure Pregnancy Discrimination Act 5 Managing Human Resources Human Resource Management The human resources of a company represent one of its largest investments. Section 18.1 Developing and Keeping Human Resources human resources the people employed in a business, commonly referred to as personnel 6 Managing Human Resources Human Resource Management The primary goals of human resource management are to facilitate performance and improve productivity. Section 18.1 Developing and Keeping Human Resources human resource management the part of business concerned with recruiting and managing employees 7 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 Section 18.1 Developing and Keeping Human Resources 8 Managing 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 Section 18.1 Developing and Keeping Human Resources 9 Managing Human Resources Managing Dealings with Unions Labor unions strengthen workers’ ability to bargain for wages, benefits, working conditions, and other concerns. Section 18.1 Developing and Keeping Human Resources labor unions organizations that represent workers in their dealings with employers 10 Managing Human Resources Overseeing Training and Development Businesses should include educational activities and developmental activities to employee training. educational activities actions, such as a human relations workshop, that prepare employees for advancing in the organization developmental activities actions, such as an industry conference, that prepare managers to lead the company into the future Section 18.1 Developing and Keeping Human Resources 11 Managing 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. Section 18.1 Developing and Keeping Human Resources cost effective economically worthwhile in terms of what is achieved for the amount of money spent 12 Overseeing Training and Development On-the-job training Conferences and seminars Job rotation Vestibule training Training and Development Techniques Mentoring Section 18.1 Developing and Keeping Human Resources Classroom teaching Coaching 13 Managing Human Resources Resolving Day-to-Day Problems Employee conflicts can be resolved in an objective manner when an employee complaint procedure is in place. Section 18.1 Developing and Keeping Human Resources employee complaint procedure a formal procedure for handling employee complaints, usually in writing and distributed to employees 14 Managing Human Resources Ensuring Equal Opportunity As an employer and manager, you must ensure that employees are not discriminated against. Pregnancy Discrimination Act a federal law that requires that employers treat their pregnant employees like all other employees when determining benefits One law you should know about is the Pregnancy Discrimination Act. Section 18.1 Developing and Keeping Human Resources 15 Managing 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. Section 18.1 Developing and Keeping Human Resources 16 Managing Human Resources 18.1 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. Section 18.1 Developing and Keeping Human Resources 17 Managing Human Resources 18.2 Explain how managers influence motivation. Explain ways to maximize employee performance Explain the importance of delegation Explain how to assess motivational techniques used to increase performance levels. Section 18.2 Motivating Employees 18 Managing Human Resources 18.2 One of an entrepreneur’s tasks is to motivate employees. Employees who are motivated produce more and better work. Section 18.2 Motivating Employees 19 Managing Human Resources 18.2 Theory X Theory Y hygiene factors motivating factors job enlargement job enrichment Section 18.2 Motivating Employees telecommuting family leave flextime management-by-objectives work team performance evaluation 20 Managing Human Resources How Managers Influence Motivation Communication is a key factor in employee motivation. How employees are regarded and treated also affects their motivation. Section 18.2 Motivating Employees 21 Managing Human Resources Assumptions Managers Make In The Human Side of Enterprise, Douglas McGregor identifies two sets of assumptions managers make about employees: Theory X and Theory Y. Section 18.2 Motivating Employees Theory X an assumption that states the belief that employees are basically lazy and need constant supervision Theory Y an assumption that states the belief that employees are motivated to work and thrive in a culture that supports motivation 22 Managing Human Resources Hygiene Factors Versus Motivating Factors According to research, two types of factors motivate workers: hygiene factors and motivating factors. hygiene factors factors that do not improve a situation, but keep situations from getting worse motivating factors factors that motivate employees, such as achievement, recognition, responsibility, advancement, growth, and the reward from doing the work itself Section 18.2 Motivating Employees 23 Managing Human Resources 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. Section 18.2 Motivating Employees 24 Managing Human Resources Provide Meaningful Work You can redesign your employees’ jobs through job enlargement and job enrichment. job enlargement the act of increasing the tasks, responsibilities, and scope of a job job enrichment the act of making a job more rewarding and less monotonous for the worker by adding elements at a different or higher skill level Section 18.2 Motivating Employees 25 Managing Human Resources Allow Scheduling Flexibility Flexible schedule techniques include: telecommuting family leave flextime Section 18.2 Motivating Employees 26 Managing Human Resources Allow Scheduling Flexibility Telecommuting for employees has been made possible because of computers, communications technology, and overnight delivery services. Section 18.2 Motivating Employees telecommuting the act of performing some or all of a job away from the business 27 Managing Human Resources Allow Scheduling Flexibility Large companies must offer family leave under federal law. Section 18.2 Motivating Employees 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 28 Managing Human Resources Allow Scheduling Flexibility Businesses that offer flextime allow employees to adjust their work schedules to suit their personal needs. Section 18.2 Motivating Employees flextime a policy that allows employees to choose the work hours and days that are most effective for their personal lives 29 Managing Human Resources Involve Employees in Decision Making One way to involve employees in the decisionmaking process is management-byobjectives. Section 18.2 Motivating Employees management-byobjectives a management technique that involves employees in setting their own objectives and gauging their own progress 30 Managing Human Resources Involve Employees in Decision Making Forming a work team in your business is another means of involving employees in decision making. Section 18.2 Motivating Employees work team a group of employees assigned a task without direct supervision and with responsibility for their results 31 Managing Human Resources 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. Section 18.2 Motivating Employees 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 32 Managing Human Resources 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. Section 18.2 Motivating Employees 33 Managing Human Resources Evaluating Employee Motivational Techniques Motivational techniques that require a large commitment of time and resources should be asked to determine if they are: working as a motivator in need of revision worth the cost able to be done a better way Section 18.2 Motivating Employees 34 Managing Human Resources 18.2 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. Section 18.2 Motivating Employees 35 Managing Human Resources 18.2 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. Section 18.2 Motivating Employees 36 Managing Human Resources 18.2 3. Explain the importance of delegation. Delegation allows an owner to work on other things, it motivates the employee, it shows confidence in the employee, and it prepares the employee for more responsibilities. Section 18.2 Motivating Employees 37 Managing Human Resources 18.2 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. Section 18.2 Motivating Employees 38 Managing Human Resources Positioning a Web Site When someone does an Internet search, they will receive hundreds of pages and links to other sites. Since most viewers give their primary attention to the first few Web pages, businesses try to have theirs on top. Section 18.2 Motivating Employees 39 Managing Human Resources Tech Terms crawler a program used to compile into a search engine information about Web sites keyword a word or phrase you type to begin an online search meta tags information coded within the HTML programming of a Web page Section 18.2 Motivating Employees 40 Managing Human Resources Tech Terms pay-per-click a search engine payment model in which companies only pay for clicks to the destination site through the search engine site based on a prearranged rate pay-per-performance a search engine payment model in which companies pay a fee to be listed at the top of the search results page Section 18.2 Motivating Employees 41 Managing Human Resources Tech Terms position the place a search engine result falls on the results list in a Web search search engine an online software application that creates indexes of Internet sites based on the titles of files, keywords, or the full text of files Section 18.2 Motivating Employees 42 End of Managing Human Resources Back to Table of Contents