Chapter 9
Human Resource Management
7 Steps
1. Strategic Human Resource Management
 Human resource management ( HRM )
- Consists of the activities managers perform to plan for ,attract, develop, and retain an effective
workforce.
- A significant source of competitive advantage.
- Human resources as part of strategic planning : HR departments deal not only with employee
paperwork but also with helping to support the organization’s overall strategy.
 Planning the human resources needed
- Understanding current employee needs
Job analysis (JA)
Advantage of job analysis
1. Job analysis provides guidance thoughout recruitment and selection of employees.
2. Job analysis helps management to understand various requirements of a particular position.
3. Job analysis helps management to develop an appropriate compensation package, eg . salary,
commisions, bonus, fringe benefits.
4. Job analysis is useful in developing suitable training and development programs for employees.
- Job description : Prepare a list of the job requirements factors, i.e. duties, responsibilities, and
accountability.
- Job specification : Prepare a list of the human requirements factors, i.e. skills, education,
experience, abilities, and personality.
2. The legal requirements of human resource management
Equal employment opportunity
- Discrimination : respect differences, against discrimination (disabilities, nationality, gender,
language, religion, belief, age, sexual orientation or any other status;)
- Affirmative Action : focuses on achieving equality of opportunity within an organization.
- Sexual Harassment : consists of unwanted sexual attention that creates an adverse work
environment.
 Quid Pro Quo : the person to whom the unwanted sexual attention is directed is put in the
position of being hired for a job.
 Hostile Environment : the person being sexually harassed doesn’t risk economic harm but
experiences an offensive or intimidating work environment.
3. Recruitment & Selection
Recruitment
- Putting the right people into the right job.
- The process of locating and attracting qualified applicants for jobs open in the organization.
 Internal Recruiting (hiring from inside) : making people already emplyed by the
organization aware of job openings.
Job posting : Placing information about job vacancies and qualifications on bulletin boards,
in newsletters and on the organization’ s chart.
 External Recruitment (hiring from outside) : Attracting job applicants from outside the
organization. (placed through newspaper, employment agencies, executive recruiting firms,
internet)
- Realistic Job Preview (RJP) : gives a candidate a picture of both positive and negative features of
the job and the organization before he or she is hired.
Selection
- How to choose the best person for the job.
- The screening of job applicants to hire the best candidate.
Selection Process
1. Background information : application forms, resume provide basic background information
about job applicants such as education, abilities, certifications.
2. Interviewing : used employee selection technique, may take place face-to-face, by
videoconferencing, or via the internet.
Four steps : Gather,Analyze,Decide and Act
- Unstructured interview called “ Non-Directive Interview ”
: Involves asking probing questions to find out what applicant is like
: No fixed set of questions and no systematic scoring procedure.
- Structured interview
: Involves asking each applicant the same questions and comparing their responses to a
standardized set of answers.
Type I : Situational interview : focuses on hypothetical situation.
Type II : Behavioral-description interview : the interviewer explores what applicants
have actually done in the past.
3. Employment Tests : legally considered to consist of any procedure used in the employment
selecting decision process.
- Ability test : Measure physical abilities, strength, mechanical ability, mental abilities, and
intelligence tests.
- Performance test or Skill test : Measure performance on actual job tasks.
- Personality test : Measure such personality traits as adjustment, energy, socaibility,
independence, and need for achievement.
4. Other Tests
4. Orientation Training & Development
Orientation
: Helping newcomers learn the ropes.
- Helping new employees get comfortablr.
- The desirable characterisrics of orientation
: Job routine
: The organization’s mission and operation
: The organization’s work rules and employee benefits
Training
: Upgrading skills of technical and operational employees
Refers to educating technical and operational employees in how to better do their current jobs.
The different types of training
1. On-the-job training : takes place in the work setting while employee are performing jobrelated task.
Four major training method: Coaching,training positions,job rotation, and planned work
activities.
2. Off-the-job training : Consists of classroom programs, videotapes, workbooks, computer.
Development
: Upgrading skill of professionals and managers
Refers to educating professionals and managers in the skills they need to do their jobs in the
future.
5. Performance Appraisal (Performance Management)
: The continuous cycle of improving job performance through goal setting, feedback, coaching,
rewards and positive reinforcement.
1. Assessing an employee’s performance
2. Providing him or her with feedback
There are two kinds of performance appraisal:
1. Objective appraisal
- They measure results
- They are harder to challenge legally
2. Subjective appraisal
- Trait appraisal: Rating of such subjective attributes as “attitude,intiative, and leadership”
- Behavioral appraisal: Measure specific, observable aspects of performance such as BARS.
BARS refers to Behaviorally Anchored Rating Scales is an appraisal tool which anchors a
numberical rating scale with specific behavioral example of good and poor performance.
Who should make performance appraisal?
: Peers, subordinates, customers, clients & self appraisals.
360-degree appraisal (360-degree feedback appraisal)
Employees are appraised not only by their managerial supervisor but also by peers, subordinates,
and sometimes clients.
6. Managing an effective workforce compensation & benefit
1. Wages or salaries : Base pay consists of the basic wage or salary paid employees in
exchange for doing their jobs.
2. Incentives : To induce employees to be more productive or to attract and retain top
performers such as bonuses,commission.
3. Benefits : Additional nonmonetary forms of compensation such as health & life insurance.
7. Managing promotions, Transfers, Disciplining & Dismissals
 Promotion : Moving upward
Moving an employee to a higher level position
- Fairness : The promotion must be fair.
- Nondiscrimination : The promotion cannot discriminate on the basis of race, gender, age, ethnicity.
- Other’s resentments : If someone is promoted, someone else may be resentful about being passes
over.
 Transfer : Moving sideways
Movement of an employee to a different job with similar responsibility.
 Disciplining & Demotion : The threat of moving downward
Poorly performing employees may be given a warning or a reprimand and then disciplined.
They may be temporarily removed from their job or perhaps given a paperwork job.
 Dismisal
- layoffs : A person has been dismissed tempoarily and may be recalled later when economic
conditions improve.
- Downsizing : A permanent dismissal; there is no rehiring later.
- Firing : A person was dismissed permanently for cause: absenteeism, sloppy work habits
breaking the law.
Chapter 12
Motivating Employee
1. Motivating for Performance
Motivation : the psychological processes that arouse and direct goal-directed behavior.
Two types of rewards
1. Extrinsic rewards : satisfaction in the payoff from others.
2. Intrinsic rewards : satisfaction in performing the task itself.
2. Content Perspectives on Employee Motivation
“ Need-based perspectives”
Theories that emphasize the needs that motivate people.
-Maslow’s hierarchy of needs theory
Need were categorized as five levels of lower-to higher-order needs
: Lower-order needs (external) = Physiological, Safety
: Higher-order needs (internal) = Social, Estem, Self-Actualization
-Alderfer’s ERG theory
Three kinds of needs
1.E = Existence Needs : physiological
2.R = Relatedness Needs : relationships with people
3.G = Growth Needs : grow as human beings
-McClelland’s Acquired need theory
Major motives determining people’ s behavior in the workplace.
: Need for Achievement (nAch) = achieve excellence “ I need to excel at tasks ”
: Need for Affiliation (nAff) = friendly and warm “ I need close relationships ”
: Need for Power (nPow) = control other people “ I need to control others ”
consists of 1) Personal Power 2) Institutional Power
McClelland’s Acquired need theory / Maslow’s Hierarchy of needs / Alderfer’s ERG theory
nAch = Need for Achievement (Self-Actualization Needs, Esteem Needs)= Growth Needs
nPow = Need for Power (Self- Actualization Needs, Esteem Needs) = Growth Needs
nAff = Need for Affiliation (Social Needs) = Relatedness Needs
-Herzberg’ s two factor theory
“Herzberg’s Motivation Hygiene theory”
Job satisfaction and job dissatisfaction are created by different factors:
Hygiene Factors : extrinsic (environmental) factors that create “ Job dissatisfaction ”
Motivators : intrinsic (psychological) factors that create “ Job satisfaction ”
3. Process perspective on employee motivation
Concerned with the thought processes by which people decide how to act.
- Equity theory : developed by psychologist J. Stacy Adams
Compare their inputs-outcomes ratio with the inputs-outcomes ratios of relevant others.
- Expectancy theory : introduced by Victor Vroom
Understanding and managing employee goals and the linkages among and between effort,
performance and rewards.
1. Effort: employee abilities, training and development.
2. Performance: valid appraisal systems
3. Rewards (or Goals): understanding employee needs.
EIV
 Expectancy (effort-performance linkage)
The belief that a particular level of effort will lead to a particular level of performance.
 Instrumentality (performance-reward linkage)
The expectation that successful performance of that task will lead to the outcome desired.
 Valence (reward-goal linkage)
The importance a worker assigns to the possible outcome or reward.
- Goal-Setting theory : Suggest that employees can be motivated by goals that are specific and
challenging but achievable.
SMART Goals
S = Specific
M = Measurable
A = Attainable
R = Result-oriented
T = Target dates
1.
2.
3.
4.
There are four elements of Goal-setting theory:
Goals should be specific
Goals should be challenging
Goals should be achievable
Goals should be linked to action plan
Setting Goals
1. Challenging and realistic distance = happy = success = winner of the goal
2. Too easy = not exciting, not challenging and boring
3. Unrealistic distance = boring and frustrated = fail = looser
4. Job design perspective on motivation
- The division of an organization’ s work among its employees
- The application of motivational theories to jobs to increase satisfaction and performance
Three techniques for job design
- Job Simplification : The process of reducing the number of tasks a worker performs.
- Job Enlargement : Increasing the number of task in a job to increase variety and motivation.
- Job Enrichment : Putting more responsibility, achievement, recognition, and advancement.
5. Reinforcement perspective on motivation
- Pioneered by Edward L. Thorndike and B.F. Skinner
- Attempts to explain behavior change by suggesting that behavior with positive consequences
tend to be repeated, whereas behavior with negative consequences tend not to be repeated.
There are four types of reinforcement:
1. Positive reinforcement : encourage desired behaviors
2. Negative reinforcement : removal of unpleasant consequences
3. Extinction : withholding or withdrawal of positive rewards for desired behavior
4. Punishment : stop or change undesired behavior
6. Using compensation & other rewards to motivate
Popular Incentive Compensation Plans:
1) Pay for performance (Merit pay) : Pay on one’ s result
Piece rate : employees are paid according to how much
Output they produced
Sales commission : sales representatives are paid a
percentage of the earnings the
company made from their sales
2) Bonuses : cash awards given to employees who achieve specific performance objective
3) Profit sharing : the distribution to employees of a percentage of the company’s profits
4) Gainsharing : the distribution of savings or gains to groups of employees who reduced costs
and increased measurable productivity
5) Stock option : certain employees are given the right to buy stock at a future date for a
discounted price
6) Pay for knowledge (Skill-based pay) : Employee pay to the number of the job-relevant skills or
academic degrees they earn
Chapter 15 Interpersonal & Organizational Communication
Communication Process:
What it is, How it works
Communication
The transfer of information and understanding from one person to another
One study found that 81% of
typical
a manager’s time in a
workday is spent communicating
How the Communication Process Works
1. Sender, Message, & Receiver
2. Encoding & Decoding
3. The Medium
4. Feedback
How the Communication Process Works
Sender, Message, & Receiver
The sender is the person wanting to share information – called a message –
and the receiver is the person for whom the message is intended as follows:
Sender  Message  Receiver
Encoding & Decoding
Encoding is translating a message into understandable symbols or
language
Decoding is interpreting and trying to make sense of the message
Sender  Message  Receiver
(Encoding)
(Decoding)
The Medium
The pathway by which a message travels:
Sender  Message  Receiver
(Encoding) (Medium) (Decoding)
The Feedback
The receiver expresses his or her reaction to the sender’s message
Sender  Message  Receiver
(Encoding) (Medium) (Decoding)
Feedback
Noise
Any disturbance that interferes with the transmission of a message
The noise can occur in the medium, encoding, decoding, nonverbal
communication, and cross-cultural communication
The Communication Process
Selecting the Right Medium for Effective Communication
Media richness indicate how well a particular medium conveys information and
promotes learning
Matching the appropriate medium to the appropriate situation
Rich medium: best for non-routine situations and to avoid oversimplification
Lean medium: best for routine situations and to avoid overloading
Barriers to Communication
1. Physical barriers
Sound, time, space, & so on
2. Sematic barriers
The study of meaning of words
Semantic meaning becomes a problem because jargon develops
Jargon: the terminology specific to a particular profession or group
3. Personal barriers
Individual attributes that hinder communication
Nonverbal Communication
Consists of messages sent outside of the written or spoken word
Expressed through interpersonal space, eyes contact, facial expressions, body
movements & gestures, touch, setting and time
How Managers Fit into the Communication Process
Formal Communication Channels
It follows the chain of command and are recognized as official
There are three types which are ….
1. Vertical communication
 Upward and downward
2. Horizontal communication
 Laterally (sideways)
3. External communication
 Outside the organization
Formal Communication
Channels
Vertical communication: Up and Down the chain of command
There are two types which are ….
1. Downward communication: Top to bottom
 Flow from a higher level to lower level(s)
2. Upward communication: Bottom to top
 Flow from a lower level to a higher level(s)
Horizontal communication: Within and Between work units
Flow within and between work units; its main purpose is coordination
External communication: Outside the organization
Flow between people inside and outside the organization
Informal Communication Channels
Develop outside the formal structure and do not follow the chain of command
Two types of informal channels are ….
 1. The grapevine
 The unofficial communication system of the
informal organization
 2. Management by Wandering Around (MBWA)
 The term used to describe a manager’s literally
wandering around his or her organization and talking
with people across all lines of authority
 Improving Communication Effectiveness
1. Being an effective listener
Judge content, not delivery
Ask question, summarize remarks
Listen for ideas
Resist distractions, show interest
2. Being an effective reader
Realize that speed reading doesn’t work
Learn to streamline reading
Do top-down reading: SQ3R
S: Survey
Q: Question
3R: Read, Recite, and Review
3. Being an effective writer
Don’t show your ignorance
Understand your strategy before you write
Start with your purpose
Write simply, concisely, & directly
Telegraph your writing with a powerful layout
4. Being an effective speaker
Tell them what you’re going to say
Say it
Tell them what you said
Chapter 13
Group and Teams
Group = collection of people performing as individual
formal group - a group established to do something productively
for the organization and its headed by a leader
informal group - a group formed by people seeking friendship
and has no officially appointed leader although a leader may emerge from membership
Team = Collection of people with common commitment
7 types of Teams
1. Continuous improvement team
volunteer of workers and supervisors who meet intermittently
to discuss workplace and quality related problem
2. Cross Functional team
Members composed of different people from different department
pursing a common objective
3.Problem solving team
Knowledgeable workers who meet as a temporary team to solve specific problem
4.Self Managed team
Workers who are trained to do all or most of the jobs in a work unit
5.Top management team
Members consist of CEO, president and top department head to help
the organization to achieve its mission and goals
6.Virtual team
Members interact by computer network to collaborate on project
7.Work team
Members engage in collective work requiring coordinate effort ;
purpose of team advice, production, project, or action
Work team for four purpose
1.Advice team - it is created to broaden the information base for managerial decisions
2.Production team - responsible for performing day-to-day operations
3.Project team - creative problem solving
4.Action team - accomplish tasks that require people with specialized training
and high degree of coordination
5 Stage of Group and team development
1. Forming - getting oriented and getting acquainted
2. Storming - Individual personalities and rotes emerge
3. Norming - Conflicts resolved, relationship develop, unity emerges
Managing conflict
two kinds of conflicts
1. Negative Conflict ( Destructive conflict )
Hinder the organization's performance or threatens its interest
2. Positive Conflict ( Constructive conflict or cooperation conflict )
benefit the main purpose of the organization and serve its interest
3 kinds of conflicts
1. Personality conflict - interpersonal opposition
2. Intergroup Conflict - Conflicting among work groups
3.Cross-cultural conflicts - based on cross-border mergers, joint ventures
Chapter 14
Power, Influence and Leadership
Leadership - the ability to influence employees to voluntarily
Managers and Leaders - Managers is about coping with complexity
Leadership is about coping with change
Authority - right to perform or command ; it comes with the job
Power - The extent to which a person is able to influence others
so they respond to orders
two types of power
1. personalized power - power directed at helping oneself
2.social power - power directed at helping others
5 Sources of Power
1. Legitimate power - power that result from managers formal position within organization
2. Reward power - power that result from managers authority to reward their subordinates
3.Coercive power - power that result from managers authority to punish their subordinate
4.Expert Power - power that result from one's specialized information or expertise
5.Referent power - power that derives from one's personal attraction
Approaches to Leadership
1.Trait Approaches
2.Behavioral Approaches
3.Contingency Approaches
4.Full-range Approaches
5.Four Additional Perspectives
Path-Goal Leadership Model
1. Directive leadership
provide clear directions and specific guidance of performance to subordinates
2. Supportive leadership
leader treat everyone equally, shows concern and be friendly
3.Participative leadership
leader encourage members to participate in decision making
4.Achievement oriented leadership
leader sets goals, emphasizes excellence, demonstrates confidence in employee abilities
( SLT ) Situational Leadership theory
proposed by ' Pual Hersey and Kenneth Blanchard '
also known as ' Hersey and Blanchard's situational leadership theory '
R1 unable and unwilling > S1 leader defines roles and tells people what ,how ,when and where
R2 unable but willing > S2 leader provides both directive and supportive behavior
R3 able but unwilling > S3 the leader and follower share in decision making about how to complete a
high quality jobs
R4 able and willing > S4 leader provides little close direction, little specifics and little personal
support to followers.
Full Range model
proposed by ' Bernard Bass and Bruce Avolio ' Also known as ' Full-Range Leadership
there are two types of leadership
1. Transactional Leader - focus on clarifying employees role and task requirement and providing
rewards and punishments contingent on performance (people are motivated by reward and
punishment)
2. Transformational Leader - focus on transforming employees to pursue organizational goals over
self- interest (people follow who inspires them)
Four additional perspective
1.Leader Member Exchange (LMX) Leadership
leader have different relationship with different subordinate
two types of leader
1.1. In- group exchange : relationship between leader and follower became a partnership
characterized by mutual trust and respect
1.2.Out-group exchange : leader are characterized as overseers who fails to create a sense of mutual
trust,
respect, or common fate.
2. Share leadership
Dividing responsibility for leading among two or more managers
3.Servant Leadership
Meeting goals of the followers and the organization goals
4. E-leadership
Managing for global networks
Chapter 16 : Control & Quality Control Improvement
Controlling for Productivity
Productivity
is defined by the formula of outputs divided by inputs for a specified period
of time
When Managers Monitor Performance
Controlling is defined as monitoring performance, comparing it with goals, and taking
corrective action as needed.
Four Steps in Controlling Process
Four Steps in Controlling Process
Take Corrective Action
There are three possibilities ….
1. Make no changes
2.
Recognize and reinforce
positive reinforcement
3.
Take action to correct negative
performance
Balanced Scorecard
It gives top managers a fast but comprehensive view of the organization via four
indicators:
1.
Financial perspective
2.
Customer perspective
3.
Internal business perspective
4.Innovation & learning perspective or
Learning & growth perspective
Balanced Scorecard:
Four Indicators
Some Financial Tools for Control
Budgets: Formal financial projections
Fixed versus variable budget
Financial Statements: Summarizing the organization’s financial status
Balance sheet
Income statement
Budgets
A formal financial projection
It is numerical plans for allocating resources
E.g., revenues, expenses, time, and people
It is used to improve time, space, and use of material and human resources
Two Types of Budgets
Fixed Budgets
 Allocates resources on the basis of a single estimate of costs
Variable Budgets
 Allows the allocation of resources to vary in proportion with various levels of activity
Financial Statements
It is a summary of some aspect of an organization’s financial status
Balance sheet: Picture of an organization’s financial worth for specific point
in time
 Summarizes an organization’s overall financial worth –that is,
assets and liabilities– at a specific point in time
Income Statement: Picture of an organization’s financial results for a
specified period of time
 Summarizes an organization’s overall financial result –
revenues and expenses– over a specified period of time
Balance Sheet
Income Statement
Total Quality Management (TQM)
Also known as “Deming Management”
Proposed ideas for making organizations more responsive, more democratic, and
less wasteful
It is a comprehensive approach dedicated to continuous quality improvement,
training, and customer satisfaction
Core TQM Principles: Deliver customer value & strive for continuous improvement
Four Components of TQM
Benchmarking
It is performance measurement tool to identify “best practices”
A technique to compare individual performance with industry at large
The search for the best practices among competitors and noncompetitors that lead
to their superior performance
By analyzing and copying these practices, firms can improve their performance
Focus Area
•
Work Environment
•
Company Culture
No.1 The Best Company to Work for
• Why is Google number 1?
•
Workplace Benefits
•
What makes it so great?
•
Pays
•
How are employees being
•
Bosses
•
Locations
treated?
• Why everyone wants to work at
Google?
Outsourcing
Also known as “sub-servicing” often refers to the process of contracting to a thirdparty
It is the subcontracting of services and operations to an outside vendor
It also allows companies to focus on other business issues while having the details
taken care of by outside experts
Example, IBM and other companies outsource components inexpensively for new
integrated software systems
PERT NETWORK
What is a PERT Network?
• PERT stands for Program Evaluation Review Technique, a network model (a flow
chart like diagram) that depicts the sequence of activities needed to complete a
project
• The major objectives of PERT are ….
 To give management improved ability to develop a project plan
 To properly allocate resources within overall program time and cost
limitations
 To control the time and cost performance of the project
 To plan when significant departures from budget occur
To understand how to construct a PERT network, you need to know five terms:
 Events is also know as “Milestones”. It is end points that represent the
completion of major activities. It is always shown as “nodes (circles)”
in the network diagrams.
 Activities is the time and resources that are necessary to progress from one
event to the next. It is always shown as “arrows or arcs” in the network
diagrams.
 Critical Path is the longest or most time consuming sequence of events and
activities required to complete the project.
 Slack time is also known as “Float time”. It is the amount of time a task can
be delayed before the project finish date is delayed.
 Dummy activities often have a zero completion time and are used to
represent precedence relationships that cannot be easily (if at all)
represented using the actual activities involved in the project. It is always
shown as “dotted arcs” in the network diagrams.
How to Draw a PERT Network?
 You can now redraw the diagram and make it more sensible
 Now draw the basic PERT Network diagram
A. A line is called an “arc” or an “arrow”
B. All of the activity is on the arc
C. The arcs MUST HAVE ARROWHEADS
D. The activity can only go from start to finish
E. The circle is the beginning or the end of activity
F. The circle is called a “node” represent the start (and end) of activities
G. The node doesn't represent any time or activity
The Diagram Below Illustrates the Kinds of Situation We Can Represent in PERT Network
Example PERT Problem
by
Rada A.5614016
Achiraya M. 5613537
Naruemon K.5613531