Part I

Human Resource
Management
Introduction to HRM
 What is HRM?

 HRM can be defined as the

utilization of human
resources to achieve
organizational objectives.

3
 Major Features of HRM
• HRM is human focus: concerned with the people dimension of
the organizational management.
• HRM is a pervasive activity: inherent in all organizations &
concerns every manager in the origination
• HRM is a Continuous function, not a one time activity
• HRM is dynamic: as a dynamic function affected by internal
and external changes
• HRM is a System: a system consisting of interrelated
acquisition, development, motivation, and maintenance
subsystems
• The HR is most critical element in an organization since people
make the decisions concerning all other organizational
resources.
4
 External Environment

TECHNOLOGICAL
FORCES

INTERNAL
ENVIRONMENT
MISSION
STRUCTURE
CULTURE ECONOMIC
SOCIAL
RESOURCES FORCES
FORCES
OTHERS

POLITICAL - LEGAL
FORCES
5
 Major Objectives of HRM
• Goal achievement - Achieve Social responsibility
goal by creating employment opportunities and
meet social needs
• Structure maintenance - Facilitate working
relationship among all members of the organization
• Goal harmony - Creates harmony between
organization goals and employees personal goals.
• Productivity improvement - Develop employees
through training and other opportunities
• Efficiency promotion - Ensures cost effective use of
HRs
6
 Major HRM Functions
• Human Resource Planning (HRP)
• Recruitment
• Selection
• Orientation
• Training and Development
• Compensation Management
• Performance Evaluation
• Promotions, transfers, demotions and separations
• Safety and Health
• Human Resource Research
• Other areas
7
 Components of HRM system

INPUTS PROCESSING OUTPUTS

• Human energy • Acquisition • Goals

& competencies • Development Achievement
• Organization plan • Motivation (services and
• HR plan
• Job analysis
• Maintenance /or goods)
• Labor market

Feedback
8
 Historical Development of HRM
• Personnel vs. HRM - HRM, as it is currently perceived, represents the extension rather
than the rejection of the traditional requirements for managing personnel effectively.

Personnel management Human resource management

Advisory and administrative Strategic
Personnel activity in the organization is HR activity in the organization is
marginalized and not seen as central to fundamentally linked to the corporate
the corporate plan plan
Personnel as a mediating role between HRM as a central management role
management and the workforce
Emphasis on written rules and procedures Flexibility more important than
systems
Collective rewards and benefits Individual rewards and benefits
People as input in the production process People as valuable resource
A command and control management A team-based management system
hierarchy 9
 Historical Development…

Understanding Personnel issues

under different schools of thoughts:
 Scientific Management (F. W.
Taylor)
 The Human Relations Movement
(Elton Mayo)
 Human Behavior Movement
 Organizational Development
Movement
10
Time line: The Development of HRM

11
 THE INCEPTION
(ACQUISITION) FUNCTION
 The Concept of Job Analysis
 Job analysis is a systematic recording of activities involved
in a job.
 It defines duties, responsibilities and accountabilities of a
job, and qualifications needed to
 It systematically collects, evaluates and organizes
information about jobs.
 It also involves accurately and precisely identifying and
describing:
 the required tasks,
 relationship of the job to technology and other jobs,
 the knowledge and skills necessary for performing the
job, and
 the conditions under which they must be performed
now and in the future 13
Job Analysis – when to do it

• When an organization is established

• When a new job is created
• When a job is changed due to:
– New technology, methods,
procedures, system
• When the organization contemplates on
a new compensation plan

14
 The components of job analysis
JobAnalysis
Job Analysis

Job Job JobPerformance

Job Performance
Job Job
Description Specification standards
standards
Description Specification

JobEvaluation
Job Evaluation

15
 Steps in Job Analysis
Examine the overall organization
Reviewing the organization chart, focusing on the formal relationships among departments,
jobs, and individuals

Select jobs to be analyzed

Determine job’s function within the overall organization

Collect data on jobs

Data related to the job, the behaviors and activities it requires, and the skills and knowledge.

Prepare job description

The job activities, equipment and working conditions

Prepare job specification

A written explanation of skills knowledge, and abilities needed for a job.
16
 Purposes of Job Analysis

Job analysis achieves two vital purposes in

the organization:
 specifies the tasks that must be accomplished
to complete a job
 determines the knowledge and the skills
necessary to perform the tasks
 Generate:
job description,
job specification,
job Standards, and
job evaluation
17
 Uses and Application of Job Analysis
• Prepare Human Resource Plan
• Recruitment
• Selection
• Training and development of employees
• Performance appraisal of employees
• Developing compensation and Benefits
• Safety and health
• Job design and redesign
18
 Hierarchy of Job Analysis Information
Job analysis seeks information about:
 Job element:- the smallest unit into which a work can be
divided
 Task:- a distinct work activity carried out for a distinct
purpose (e.g. typewriting)
 Duty:- a number of related tasks
 Position:- One or more duties performed by one person
in an organization.
 Job:- type of position within an organization
 Job Family:- a group of two or more jobs that either call
for similar worker characteristics or contain parallel work
tasks as determined by job analysts
 Occupation:- a group of similar jobs found across an
organization.
 Career:- a sequence of positions, jobs or occupations a
person has over his or her working life. 19
 Types of Information needed for Job Analysis

• Work Activities
• Worker-oriented activities
• Machines and materials used
• Job performance standards
• Job context
• Personal Attributes
20
 Sources of Information for Job analysis

• Employees
• Supervisors
• Independent Expert - Persons specializing in job
analysis are appointed to watch the employees
performing the job.
• Job Review Committee - Such committee
consists of representatives from human Resource
department, labor unions.
• Nonhuman sources
21
 Methods for Collecting Job Analysis Information

 Observation
 Individual interview
 Group interview
 Structured questionnaire
 Technical conference method
 Diary method
22
 Job Design
What is Job Design?
 Job design is the result of job analysis
 Managers involve employees in the job
design process
 Specifies three characteristics of jobs:
 Range,
 Depth, and
 Relationships
 Individuals perceive their jobs in terms of
job's range, depth, and relationship and
that is usually called perceived job content 23
 Characteristics of job content
• Characteristics of job content include:
– Skill variety
– Task Identity
– Task Significance
– Autonomy
– Feedback
• The job characteristics model suggests that
jobs should be designed increase motivation,
performance, and satisfaction, reducing
employee turnover and absenteeism. 24
 Redesigning Job Range and Depth

• Redesigning Job Range:

• Job Rotation
• Job Enlargement
• Redesigning Job Depth:
• Job Enrichment

25
 Alternate job analysis methods
• DOL’s job analysis process (functional job
analysis)
• Position analysis questionnaire (PAQ)
• Management position description
questionnaire (MPDQ)
• Occupational analysis inventory (OAI)
• Job element inventory (JEI)
• Critical incident method
26
 Acquisition function of HRM
The acquisition function of HRM is
primarily concerned with acquiring
human resources needed by an
organization and involves the following
activities:
 Strategic human resource planning
 Recruitment & Selection
 Induction
27
 Strategic HRP
HRP:
 the process by which an organization ensures that it
has the right number and kinds of people, at the right
place, at the right time, capable of effectively and
efficiently completing those tasks that will help the
organization achieve its overall objectives.
SHRP:
 the process of linking human-resource-planning
efforts to the organizations strategic directions. It
translates the organization’s strategic goals and
objectives into the number of workers needed to
meet those goals and objectives.
28
 Purposes and Elements of SHRP
• Purposes/importance:
– Facilitate assessment of the current situation of an
organization and its future direction (profile),
– Determining the implications of the assessments on
future supplies and demands for human resources,
– Help to maintain continued and smooth development of
organizations, and as a result,
– Enable organizations to be competitive.
• Elements:
– Assessing Current Human Resources
– Determining Future Human Resource Demand
– Job Analysis
– Job evaluation 29
 SHRP issues
• Relevant SHRP issues that need to be considered
during retrenchment:
– Outplacement
– Lay-offs
– Leave of absence
– Loaning
– Work sharing
– Reduced working hours
– Early retirement
– Attrition & hiring freezing
30
 Recruitment
What is Recruitment?
The quality of human resources very much
depends on the quality of recruits.
It is the process of discovering potential
candidates for actual or anticipated
organizational vacancies.
It is the process of finding right people for
right positions at the right time.
It is concerned with identifying and attracting
a pool of qualified candidates to fulfill human
resource needs of an organization. 31
 Factors affecting Recruitment

• Size of the organization

• Employee Turnover
• Organizational Growth
• Image of organization
• Nature of the Job
• Organizational policies
• Government
• Cost of Recruitment 32
 The recruitment process

Recruitment

Internal
Locating Sources of Recruitment
External

Internal
Attracting qualified candidates to
apply for jobs External

33
 Sources of Recruitment

• Internal sources - the most common methods

used for internal recruiting are: job posting,
employee referrals, and human resource
Inventory (skills inventory)
• Advantages: better selection, moral Building,
adaptability, management development, cost-
effective
• Disadvantages: limited choice, in- breeding,
favoritism, limited opportunities, adverse effect
on the morale of employees
34
 Sources of Recruitment
• External sources: the most common methods used
are: advertising, employment exchanges, educational
institution placement, employee referrals, and walk-
ins/write-ins/electronic search
• Advantages: qualitative human resources,
organizational rejuvenation, environmental
adaptation, balanced human resource mix, and
fairness in Recruitment
• Disadvantages: high cost, poor employee morale,
adaptability Problems, wrong selection

35
 Selection

• Selection is the process of

selecting the best candidate
for a job

36
 Discussion Questions
1. Difference between training and development?
2. How can the company/institution decide as
training is needed and on which issues deal
with?
3. Imagine you are preparing to conduct an
interview for the post of accountant, what you
would need to do before the interview to
ensure that you are properly organized.
 Selection process

• Effective selection process requires:

– Clearly spelled out job description and job
specification for the vacant positions.
– Sufficiently large pool of prospective applicants.
– Series of steps through which applicants pass.
– Selection standards to be used in selection.
• Selection is a two-way process. The
organization chooses the employee. The
employee chooses the employer.
38
Selection process…
Right selection creates:
– Human capital,
– Improves employer-employee relations,
– Increases productivity and commitment of employees and
– Facilitates environmental adaptation
Poor selection leads to:
– Increased employee turnover,
– Absenteeism,
– Accidents
– Job dissatisfaction,
– High costs of training and
– Productivity losses.
39
 Steps in Selection Process

Selection steps Rejection

Application form Under-qualified

Evaluation

Preliminary interview Below average in ability

Selection Tests Poor Scores

40
 Steps in Selection Process…

Reference Checks Non-verifiable or Poor reference

Selection interview Not selected

Medical test Physically unfit

Hiring Decision Candidate rejects the job offer

41
 Placement
• When selected candidates report for
duty, they should be placed in the
right job.
• The first placement is for a probation
period, usually extending from 6 to 12
months.
• If the performance is satisfactory
during the probation period, the
employee is given a permanent
posting. 42
 Socialization & Orientation
• Orientation:
– the activities involved in introducing new
employees to the organization and their work units
– The HRM activity that introduces new employees
to the organization and to the employees’ new
tasks, superiors, and work groups
– The purpose of orientation is:
• To reduce anxiety/ Hazing
• Reduces turnover rate
• Saves time and thus money
• Develops realistic expectations 43
 Functional Aspects of Orientation

• Who Does It
• Orientation Goals
• Orientation Program: Policies,
Mentoring
• Orientation Checklists
• Orientation Overload
• Orientation Follow-up
44
 Focus areas & responsible unit of Orientation

 Focus areas:
 Organizational objectives, history, philosophy, procedures
and rules
 Personnel policies such as hours of work, pay procedures,
overtime requirements, and fringe benefits.
 The specific duties and responsibilities of the new
member’s job.
 Touring the organization’s physical facilities
 Introducing the employee to his or her superior and
coworkers
 responsible unit:
 The supervisor of the new employee
 By the HRM department
 Combination of the two 45
 Socialization
Socialization: A process of adaptation that takes
place as individuals attempt to learn the values
and norms of work roles.
Underlying assumptions:
 Socialization influence performance
 New employees suffer from anxiety and has two
implications:
 New employees need special attention
 The existence of tension could be motivating
 Socialization does not occur in a vacuum (is affected
by informal interactions)
 People usually experience high anxiety at entry and
want to reduce their anxiety quickly
46
 Model and types of socialization
 Models:
 Pre-arrival stage
 Encounter
 Metamorphosis
 Outcomes
Types:
 Formal Vs. Informal
 Individual Vs. collective
 Fixed Vs. Variable time period
 Serial Vs. Disjunctive
 Investiture Vs. Divestiture 47
THE DEVELOPMENT
FUNCTION
Concept of HR Development

Human resource development is about two things:

 Training: Helping employees do their present jobs.
 Development: Helping mangers handle future
responsibilities
Training
 Seeks to improve ability to perform present jobs.
 Skills-oriented generally given to operative employees
Development
 Seeks to improve experience to handle future challenges
and responsibilities.
 Education-oriented, given to managerial employees who
supervise the activities of others. 49
Distinction between Training and Development

Employee Training Management Development

 Focus present jobs;  Focus on future
task oriented responsibilities; growth
oriented.
 Short-term periodic  Long-term on-going process.
process.  Target is managerial
 Target is operative employees
employees  Develops conceptual,
 Confined to hands- interpersonal, technical and
on skills and decision-making skills
 Develop employee potential
knowledge
capable of achieving
 Remedial effort. 50
 What is training?
• systematic process of altering the behavior of
employees in a direction to increase organizational
goals.
• Enhances capabilities required to improve
performance in the present job.
• Involves positive changes in knowledge, skills and
attitudes of employees to increase their efficiency
and effectiveness on the job.
• Serves as a balancing factor between employee
capabilities and job requirements.
• Transforms the behavior of the individual.
51
 Distinction between Training and
Development

Training defined as a planned program designed to improve

performance and to bring about measurable changes in
knowledge, skills, attitude and social behavior of employees for
doing a particular job.
Training provides employees with specific, identifiable
knowledge and skills for use on their present jobs.
Training is a short-term process utilizing a systematic and
organized procedure by which personnel acquire technical
knowledge and skills for a definite purpose
 Development on the other is the systematic process of education, training and
growing by which a person learns and applies information, knowledge, skills,
attitudes and perceptions.
Development being broader in scope and focusing on individuals gaining new
capabilities useful for both present and future jobs.
It is often the result of experience and the maturity that comes with it.
Development is said to include training to increase skills and knowledge to do a
particular job and education concerned with increasing general knowledge and
understanding.
 Training - Designed to provide learners with the
knowledge and skills needed for their present jobs

 Development - Involves learning that goes beyond

today's job – more long-term focus
Training as a tool for increasing
manpower productivity!!!!

THERE IS NOTING TRAINING CAN NOT DO;

NOTHING IS ABOVE ITS REACH;IT CAN
TURN BAD MORALS TO GOOD, IT CAN
DESTROY BAD PRINCIPLES and CREATE
GOOD ONES, IT CAN LIFT MEN TO
ANGELSHIP.
Mark Twain
 Development
Training

Understand information concepts and context;

Develop judgment; Expand capacities for
Learn specific behaviors and actions; assignments
Demonstrate techniques and processes
Focus:

Shorter-term Longer-term
Time Frame:

Qualified people available when needed;

Performance appraisals, cost/benefit analysis, promotion from within possible; HR-based
passing tests, or certification competitive advantage
Effectiveness
Measures::

FIGURE, Development versus Training

 Before we go for training we should
answer

Desired Performance - Actual Performance =

High gap
“Is the cost of the discrepancy (gap) high
enough that it seems worth pursuing a
solution?”

If the answer is no…..

IGNORE
Performance Consulting
Ques. 2: What is the Cause(s)?
Is it a problem of skill
or
a problem of will?

I don’t
wanna! I don’t know
how.
 Ques. 3
Is the problem can be solved by
training?
 Cause Solution
If skill or knowledge……….training
If lack feedback……………..feedback, standards
If not motivated…………….rewards, consequences
If unclear expectations…..measure, discuss
If job environment…………change environment
If potential……………………change personnel
 Importance of Training
Human capital is increasingly regarded as one of the major
drivers of productivity, economic growth and competitive
advantage. Hence, recognizing the importance of human
capital, the training manpower sets out to generate the
following importance:

 A skilled, adaptable, motivated and resilient workforce (Increase in

production & quality)
 A responsive strategy to meet employers needs for skilled workers, so that Less

supervision necessary

 A learned employee can retain customers and increase business & market share

thro’ proper behavior and good public relations.

 Increasing use of fast changing techniques in production with minimum cost and

effectively.
 Old employees need refresher training to enable
them to keep abreast of changing techniques and the use
of sophisticated tools and equipment. i.e, Reduction in
manpower obsolescence

 Gives the workers confidence to do their jobs, reduces

tension, boost morale and job satisfaction, reduces
injuries and accidents, gives them a chance to advance.

 Gives the business a good image and more profit.

 Training also result in Reduction to turnover & absenteeism

 Training is necessary when a person has to move from one job to another

because of transfer, promotion or demotion.

 Support career development

Therefore, we can say that:-

“An organization is only as good as it’s employees.”
 Benefits of Training

• Improves job knowledge, skills and attitudes of

employees;
• Aids in increasing productivity and quality of work.
• Increase employee morale; labor turnover is reduced
• Job satisfaction is increased.
• Improves labor-management relations
• Helps keep costs down; materials and equipment are
properly utilized;
• Helps in planning the change and managing conflicts
• Improves organizational climate.
67
 Implementation Evaluation
Assessment
Compare
Select Training
Determine Training Outcome
Training Methods Against
Needs Criteria

Identify Arrange for

Training Training
Objectives

Develop Pretest Conduct Monitor

Criteria Trainees Training Training
 Training Process

Conduct
Determi Specify Determine Select Develop Training
ne training Curriculu Trainees/ Training Program
Training Objectiv m/ Trainers Budget
Needs es Methods

Evaluation and
Feedback

69
 Training Needs Assessment
Organization-wide Sources
Grievances Observations Exit Interviews Waste/Scrap
Accidents Complaints Training Observations Equipment Use

Task Analyses Sources

Job Requirements = Employee KSAs
Job Description Requirements = Job Specifications

Individual Employee Sources

Tests Records Assessment Centers
Questionnaires Performance Appraisals Attitude Surveys
 Identify Training Objectives
Once training needs have been identified using the
various analyses, then training objectives and
priorities must be established. All of the gathered
data is use to compile a gap analysis, which
identifies the distance between where an
organization is with its employee capabilities and
where it needs to be.
Trainings should aim at:-
Three types of training objectives can be set:

• Attitude: Creating interest in and awareness

of the importance of something (e.g., sexual
harassment training)
• Knowledge: Imparting cognitive information
and details to trainees (e.g., understanding
how a product works)
• Skill: Developing behavioral changes in how
jobs and various task requirements are
performed (e.g., improving speed on an
installation)
 Training Design
• Once training objectives have been determined,
training design can start.

• Whether job-specific or broader in nature,

training must be designed to address the specific
objectives.

• Effective training design considers the learners,

instructional strategies, and how best to get the
training from class to the job.
 Training Design Elements

Learner Characteristics Training Transfer

- Ability to learn - Strategic link
- Motivation to learn - Supervisor support
- Self-efficacy - Opportunity
- Perceived utility/value - Accountability
- Learning styles

Instructional Strategies
- Practice/feedback
- Overlearning
- Behavioural modelling
- Error-based examples
- Reinforcement/
Immediate confirmation
 Select Training Methods
The selection of training method can be affected by
different factors:

Cost

Time Allotted Individual vs. Team

Selecting Training
Methods

Completion Time Line Number of Trainees

 Training Methods/Pedagogic
On-the-job Training Methods
– Involves "learning while working". Training takes place on
the job.
– Places the employee in the context of real work situation.
– Learning by doing under the supervision of an experienced
employee.
– The methods available for on-the-job training are:
– Apprenticeship Training
– Internship Training
– Job Instruction Training
77
 Training Methods cont’d …

• Apprenticeship Training
– Employees learn by working with those already
skilled in their jobs.
• Internship Training
– The goal is to combine practical experience with
classroom-oriented theoretical knowledge.
• Job Instruction Training
– A systematic approach to on-the-job training to
teach new task.
– Designed for supervisors to train operatives.

78
 Training Methods cont’d …

Off-the-job Training Method

• The training takes place outside the work situation.
• Mostly classroom-based.
• The trainees focus on learning experience.
• Removed from the stresses and demands of workplace.
• The methods used for off-the-job training are:
– Lecture/ conference
– Simulation exercises
– Programmed Instruction 79
 Off-the-job Training Method
This includes:
 Seminars/Conferences,
 Videos
 Simulation method
Some of the methods that are included in this
category are:
 Case study
 Role-playing, Experiential exercises
 In-basket exercises,
 Management games, Vestibule training
 Computer based training, and
 Programmed Instructions
80
 Evaluating Training Effectiveness
Evaluation
 Provides feedback on the effectiveness of training
 It focuses on measuring the extent to which objectives
have been achieved
 Helps to control and improve the quality of programs and
to judge their value.
 Process of evaluation
 Setting intended standards
 Measuring actual outcomes
 Finding Deviations
 Corrective actions
 Criteria for Evaluating Training Effectiveness
 Reaction criteria
 Learning criteria
 Behavior criteria
 Results criteria
81
 What is Management Development?
 A systematic process of improving managerial effectiveness by
imparting
 Knowledge,
 Increasing skills and
 Changing attitudes
 Prepares the management team to handle future responsibilities.
 more concerned with education than training
 focuses on the employee’s personal growth
 Given to managerial employees who supervise the activities of others.
 Develops managerial potential by increasing conceptual, interpersonal
and decision-making skins.
 Future-oriented
 Target is managers
82
 Management dev’t cont’d …

• The Process
– Look at organization’s objectives
– Appraise the current Human Resources
– Ascertain the development activities
– Determine individual development need
– Assess potential development programs suitable
to the needs
83
 Management dev’t cont’d …

 The pedagogic: on the job methods and off the job methods
 On the job Methods:
 Coaching
 Understudy assignment
 Job rotation
 Committee assignment
 Off the job methods:
 Sensitivity training, transactional analysis, formal
studies, case studies, decision games, and role plying 84
 Benefits of Management Development

• Increase capability
• Enhance effectiveness
• Foster teamwork
• Facilitate Environmental Adaptation:
• Improved Decision Making
• Managerial Succession
• Job Satisfaction
85
 Career Development

• A career is a sequence of positions,

jobs, and/or occupations that one
person engages in during his/her
working life.
• Career development is the personnel
activity which helps individuals to
plan their future careers within the
organization.
86
 Career Development cont’d …
• Employees often ask questions like:
– How do we advance our career?
– What are the bases for promotion?
– Do organization human resource development programs
enable our chances for promotion?
– Do we have a job security?
– Why have not our organization given us career counseling?
• What other things do employees want?
– Career equity
– Supervisory concern
– Awareness of opportunities
– Employment interest
– Career Satisfaction
87
 Career Perspectives
Organizational Individual
• Involves tracking career • Focus on assisting
paths and developing career individuals to identify their
ladders major goals and to
determine what they need
• directing and monitoring to achieve these goals and
the progress of special
groups of employees, and • Includes:
• ensure that capable – looking the inside and
managerial and technical outside life of the
individual
talent will be available to
meet the organization’s – addressing the
needs individual’s personal
work life and other life
• Organizational career style issues
planning 88
 Career Vs. Employee Development

• Career Development
– Long-term career effectiveness, and
– success of organizational personnel
• Employee Development
– Effectiveness of performance
– immediate or intermediate time frame
– Both are closely linked and need to be
compatible
89
 Values of Career Development

• Aligns strategy and internal staffing requirements.

• Develops promotable employees.

• Lowers turnover.

• Taps employee potential.

• Further personal growth

• Satisfies employee needs

90
 Values of Career Development
 For the organization
 Ensuring that needed talent will be available
 Help organizations to attract and retain high talent employees
 Provide an opportunity of growth for minorities and women
 Reduces employee frustration
 Promote organizational good will
 For the individual CD Allows
 using one’ full potential
 facing expanded challenges
 having greater responsibility & increased autonomy
 Psychic income (having interesting and meaningful work)
91
 Career Stages
• Exploration:-A stage that usually ends in one’s transition
from school to work
• Establishment:-A stage in which one begins to search for
a work and getting one’s first job
• Mid-career:-A stage marked either by
– continuous improvement in performance
– leveling off in performance
– start of deterioration in performance
• Late career:- A stage in which one is no longer learning
about his or her job
• Decline:- The final stage that is usually marked by
retirement 92
The MOTIVATION
FUNCTION
 Motivation

• Willingness to exert effort to

achieve organizational goals
conditioned by the effort’s
ability to satisfy individual
needs.
94
 Motivation Process

Unsatisfied needs  Deprivation

 Functional Vs. Dysfunctional

Increased tension
 Outward behavior
Effort
 Goal attainment
Satisfied needs
 Calm state
Decreased tension

95
 The Classic Motivational Theories

Theory Individuals
• Hierarchy of Needs • Abraham Maslow
• Theory ‘X’ & ‘Y’ • Douglas McGregor
• Two Factors Theory • Frederic Hertzberg
• The ERG Theory • Fred Alderfer
• The Three Needs Theory • David McClelland
• Equity Theory • J. Stacy Adams
• Expectancy Theory • Victor Vroom

96
 Ind. Performance – Org. goal relationships

 The likely hood that successful performance on the job will

lead to the attainment of organizational goals.
 To function effectively it requires:
 Plan for a given time frame
 Cascading and communicating the plan
 Empowering the employee
 Devising proper performance measures
 The expectation that achieving organizational goals will lead to
the attainment of individual goals.
 It Involves satisfying individual needs through
 Flexible compensation
 Uniform benefit
 Discriminatory reward and recognition programs
97
 The Motivation and Productivity Linkage

• Productivity relates to performance

• High level of productivity leads to the
attainment of organizational goals
• Dimensions of productivity include: -
– Volume
– Quality
– Customer satisfaction
98
 Motivation and Total Quality Management

• Total quality management (TQM) is a

management concept that focuses the
collective efforts of all managers and
employees on satisfying customer
expectations by continually improving
operations management process and
products.
99
 Job Design to Increase Productivity

• The Job Characteristics Model

– Argues that the nature of jobs affect
productivity, motivation and
satisfaction, and identifies five core
dimensions or characteristics of jobs
• Skill variety
• Task identity
• Task significance
• Autonomy
• Feedback
100
 Performance Appraisal

 Performance Management System

 A system of helping employees achieve performance standards
through all round support and regular but periodic feedbacks.
 Purposes of PMS include: enhancing worker performance,
giving feedback, employee development, and documentation of
PA outcomes
 Performance Appraisal
 It is a formal system of periodic review and evaluation of an
individual’s job performance.
 When it is properly done, performance appraisal provides
feedback to employees.
 Performance Appraisal Process
 A formal organizational process whereby each employee is
evaluated to determine how he or she is performing
101
 The PA process

• Establish performance standards

• Communicate Performance expectations to
employees
• Measure actual performance
• Compare actual performance with the
standards
• Discuss the appraisal with the employees
• If necessary, initiate corrective action
102
 Appraisal Methods
 Absolute Standards - appraising an employee’s performance
against absolute organizational standards. It includes:
 The essay appraisal
 The critical incident method
 The check list
 The graphic rating scale,
 Forced choice method, and
 Behaviorally anchored rating scales
 Relative Standards - evaluating an employee’s performance
by comparing the employee with other employees. It
include:
 Group order ranking
 Individual ranking, and
103
 Paired comparison
 Performance Appraisal techniques

• Rating Scales
• Critical Incident
• Essay
• Ranking
• Work Standards
• Management By Objectives

104
 Creating Effective Performance Mgt. System

• Using Behaviorally-based Measures

• Combining Absolute and Relative Standards
• Ongoing Feedback
• Using Multiple raters
• Peer Evaluation
• Selective Rating
• Trained Appraisers
• Rewarding Effective Appraisers
105
 Use of PA
• Generally the following are the main uses of
performance appraisal.
– Performance improvement
– Compensation adjustments
– Placement decisions
– Training and development needs
– Career planning and development
– Staffing process deficiencies
– Informational inaccuracies
– Job-design errors
– Equal employment opportunity
– Feedback to human resources 106
 Responsibility for Appraisal

The following are responsible for employee's

performance appraisal:
– Immediate Supervisor
– Peer Evaluation
– Self-Appraisal
– Subordinate Evaluation
– Group Appraisal
– Combinations

107
 Compensation Management

• Compensation is reward employees receive in exchange for

their performance.
• It is concerned with wages and salaries, pay raises, and
similar monetary exchange for employees’ performance.
• Well-designed pay or compensation system enables the
organization:
– To attract qualified employees required
– To retain and motivate the existing workforce toward its goal
achievement.

108
 Objectives of Compensation
 The objective of a compensation administration is to
establish fair and equitable rewards to the employees, so
that they are motivated to do the job in a better way for
the organization.
 Objectives that are sought through effective
compensation management:
 Acquire qualified personnel
 Retain current employees
 Ensure equity
 Reward desired behavior
 Control costs
 Comply with legal regulations
 Facilitate understanding
 Further administrative efficiency 109
 Types of Compensation

• Financial Compensation
– Direct compensation, which is paid to employees in the
form of wages, salaries, bonuses, and commission in
exchange for their performance
– Indirect compensation includes all financial rewards that
are not included in direct compensation.
– Determinants of Financial Compensation
• The organization, the labor market, the job and the employee
have an impact on the job pricing and the ultimate
determination of employee’s financial compensation.
• Non financial Compensation
– includes any satisfaction, which employees receive from
the job, such as the need for recognition, responsibility,
personal growth and the like or from environment in
which they work. 110
Major factors that affect compensation decision

Some of the major factors that affect compensation

decision:
 Quality and quantity of needed skill
 The organization’s current financial position and financial
prospects for the coming year.
 Cost of living index
 Employees’ behavior, such as performance, turnover,
absenteeism, unionization attempts, and sabotage.
 Labor markets
 Job influence
111
 Compensation techniques

• Job analysis
– Job analysis reveals the major tasks, duties and
responsibilities, the relationship of a job to other jobs,
the skill and knowledge required for each job, the
outcomes that are expected and working conditions.
• Job evaluation
– Job evaluation is that part of a compensation system
in which a firm determines the relative value of one
job in relation to another.
– The major reason of job evaluation is to maintain
internal pay equity among various jobs in the
organization.
112
 Compensation and Performance

• Nothing is more demotivating to productive

employees than to be paid equal salary as less
productive employees.
• That is, the faster an employee works, the higher the
output and the greater the reward.
• Bonuses are rewards for successful performance
and are paid to employees as lump sum.
• Commission is a reward paid on the performance of
individual, typically salaried/sales

113
Discipline and the Difficult Employee
 Discipline and the Difficult
Employee

• Legal Aspects of Discipline

– Employment at Will
– Job-as-property doctrine
– Just Cause Discharges
– Illegal or retaliatory discharge
– Implied contract

115
 Discipline and the Difficult
Employee
• Category of Employees’ Problems
– The Ineffective Employee
– Substance Abusing Employee
– Participants in Thefts, Crime, and
Illegal Acts
– Rule Violators

116
 Disciplinary System
Employer

Establish
rules &
goals Communicate
rules & goals
Assess
Behavior
Modify
Employees undesirable
behavior
117
 Disciplinary Model
Organization Definition Investigation of
Discipline of Employee
Policy Discipline Offense

Disciplinary
Interview

Due Progressive
Discharge
Process Discipline

118
 Approaches to Discipline

• Hot Stove Rule

– warning system
– immediate burn
– consistency
– impersonal
• Progressive Discipline
• Positive Discipline
119
The MAINTENANCE FUNCTION:
Employee Benefits and
Services
 Compensation

Compensation
Financial Compensation Non-Financial Compensation
Direct Indirect The Job Job Environment
• Wages • Insurance • Interesting • Sound Policies
• Salaries Plans: Duties • Competent
• Commis • Social • Responsibility Supervision
sions Assistance • Congenial Co-
• Bonus • Employee • Recognition Workers
Services • Achievement • Status Symbols
• Paid • Advancement • Working
Absences conditions
• Job Sharing
121
 Benefits (Indirect Compensation)
• Employee benefits are the indirect form of the total
compensation; they include paid time away from work, insurance
and health protection, employee services, and retirement income.
Objectives:
• Employee benefits policies of an organization are to:
• Reduce fatigue
• Discourage labor unrest
• Satisfy employee objectives
• Aid recruitment
• Reduce turnover
• Minimize overtime costs
 Time-Off Related Benefits
• Holidays
• Vacations
– so many days per year
– 1 day for every X days worked
– Bankable
• Sick Days
– same methods as vacations
– What type of behavior reinforcement?
• Wellness Days
 Leaves from Work
• Family Leave
• Maternity/Parental Leaves
• Military Leave
• Jury Leave
• Bereavement Leave
• Sabbaticals
• Leaves without pay
 Health Insurance
Gov’t Health Care Plan
 Fee for services
 Partially free services
 Other Insurance Plans
 Life
 Long-term Disability
 Dental
 Eye
 Automobile
 Pension Plan Definitions
Type of Contribution
 Contributory Plan: Jointly by employee &
employer
 Noncontributory Plan: Solely by employer
Amount of Pension Plan
 Defined Benefit Pension Plan
 Defined Contribution or Money Purchase
Plan
 Retirement Plans
Preretirement Plans
 Financial
 Emotional
 Other Benefits

 Education
 Credit Unions
 Child Care
 Food Service
 Social and Recreational
 Awards
 Major Categories of Benefits
• Employee benefits can be divided in the following major
categories:
– Insurance Benefits: life, health and work related accident
insurance.
– Security Benefits: These are non-insurance benefits that provide
income protection to employees before and after retirement.
– Time-off Benefits: include sick leave, holidays, vocations,
maternity leave, education leave and other related leave of
absence.
– Employee Services: These services include educational
assistance, subsidized food services, financial and social services
and the like.
 Non-financial Compensation

• Needs such as social, ego, and self-actualization are

becoming more important.
• These higher order needs may be satisfied through the job
or job environment or both. The benefits each employee
would value depend on their personal preferences.
• In most cases, employees may get personal satisfaction if
the job provides them opportunities for recognition, feeling
of achievement, and above all advancement opportunities.
• Jobs to be challenging, meaningful, and interesting,
organizations must attempt to match the job requirements
and individual abilities.
LABOR - MANAGEMENT
RELATION
 Trade Unions and Collective Bargaining

Trade Unions
• Trade union is an organization of workers
whose purpose is to protect and maintain the
interests of union members.
• As workers representative, trade unions
“provide workers with a 'collective voice' to
make their wishes known to management
and thus bring actual and desired conditions
closer together.
131
 Objectives of Trade Unions
• Objectives characterize the trade unions:
– To improve the living standards and economic status of its
members
– To enhance individual security against threats and
contingencies
– To create mechanisms to guard against the use of arbitrary
and capricious policies
• This worker organization is established to bargain with
management about:
– pay,
– working hours,
– conditions of employment and
132
– to make a joint decision with management
 Collective Bargaining
 Collective bargaining is basic to labor- management relations.
 It is a joint process of job regulation undertaken by
management and trade unions
 This contractual agreement is hoped to give workers and
management an identity of purpose.
 Collective bargaining is a means to reach negotiable
agreements on matters pertaining to employment.
 This joint labor-management agreement has two outcomes.
These are: substantive agreements and procedural agreements
 The process of bargaining is carried out by negotiation where
workers' representative (union) and management discuss
issues with a view to relating a common agreement.

133
 Collective Bargaining
Formal negotiations Process
 Preparation:
 Negotiation
 Closing
Various methods can be used to resolve
disputes
 Conciliation
 Mediation
 Arbitration 134
 Employee Relations

• An employee relation is the interactions

between the employer (represented by
management) and the work-force
(represented by trade unions).
• Here, interactions imply that management
must support and address issues of
employee job satisfaction and employees
must show commitment towards the
success of the organization.

135
 Employee Relations…
• Employee relations is concerned with:
– Managing and maintaining formal and
informal relationships with trade unions
and their members.
– Sharing information with employees and
involving them in decision making on
matters of mutual interest
– Creating and transmitting information of
interest to employees. 136
 Employee Relations Objectives and practices

• Objectives:
– Provide a conducive work environment in which
employees can do their jobs better
– Help management to mutually solve employees
problems which otherwise might affect performance
– Helps employee to control over important aspects of
work life.
• Practices:
– Counseling
– Employee Participation
137
 Grievance Handling

• Grievance refers to any factor involving

wages, hours, or conditions of employment
that is used as a compliant against the
employer.
• Sources of Grievance
– promotions, transfers, layoffs, job
evaluations, work assignments, overtime,
vacations, incentive plans, absenteeism,
individual’s attitude, discipline, ambiguous
job description, union activism, company
rules… 138
 Guidelines for Handling Grievances
 The best way to handle a grievance is to develop a work
environment in which grievances don’t occur in the first
place.
Some critical guidelines: List of do’s and don’ts
Do:
 Investigate and handle each case as though it may
eventually result in arbitration.
 Talk with employee about his/her grievance.
 Require the union to identify specific contractual
provisions allegedly violated.
 Fully examine prior grievance records
 Treat the union representative as your equal.
139
 Guidelines cont’d …

Don’t
Hold back the remedy if the company is
wrong.
Relinquish to the union your rights as a
manager.
Bargain over items not covered by the
contract
Deny grievances because “your hands have
been tied by management” 140