MANAGING PEOPLE AND LABOUR

7/27/2019 MANAGING PEOPLE AND LABOUR

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Human resource management: Function of attracting,developing, and retaining employees who can perform the

activities necessary to accomplish organizational objectives.

Three main objectives:

(1) Providing qualified, well-trained employees for theorganization.

(2) Maximizing employee effectiveness in the organization.

(3) Satisfying individual employee needs through monetary

compensation, benefits, opportunities to advance, and job

satisfaction.

Human Resources: The PeopleBehind the People


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Human Resource Responsibilities


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Recruitment and Selection

Human resource managers recruit and help select the right

workers for the company.

In addition to traditional methods of recruiting such as

college job fairs, personal referrals and want ads; most

companies now rely on their Web sites.Internet recruiting is quick, efficient, and inexpensive.

Reach a large pool of job seekers

Use social networking sites


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Selecting and Hiring Employees

Human resource manager selects

and hires employees, often in

conjunction with department

managers or supervisors.

Recruitment and selection areexpensive for employers, and a

bad hiring decision is even more

expensive.


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Orientation and Training

Newly-hired employee often completes an orientation

program

Informs employees about company policies

Gives employee manuals

Provides training

Training Programs -

Are good investment for both employers and employees

Enable employees to build their skills and knowledge

Enable employers to retain long-term, loyal, high-performing employees


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Performance Appraisals

Performance appraisal: Evaluation of and feedback on anemployees job performance.

Some firms conduct peer reviews while other firms allow

employees to review their supervisors and managers.

Some firms conduct a 360-degree performance review, a

process that gathers feedback from a review panel that

includes co-workers, supervisors, team members,subordinates, and sometimes customers.


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Compensation

Wages: Pay based on an hourly pay rate or the amount ofwork accomplished.

Construction workers, retail salespeople and restaurant wait

staff earn wages.

Salary: Pay calculated on a periodic basis, such as weekly ormonthly.

Office personnel, executives and professional employees

receive salaries.

Most firms base compensation decisions on five factors:

What competing companies are payingGovernment regulation

The cost of living

Company profits

Employees productivity


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Employee Benefits

Employee Benefits:Additional compensation, such asvacation, retirement plans, profit-sharing, health insurance,

gym memberships, child and elder care, and tuition

reimbursement, paid entirely or in part by the company.

Wages and salaries account for around 70% of totalemployee compensation and benefits account for 30%.


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Employee Separation

Voluntary turnover: Occurs when employees leave firms to starttheir own businesses, take jobs with other firms, move to another

city, or retire.

Some firms ask employees who leave voluntarily to participate in

exit interviews to find out why they decided to leave.

Involuntary turnover: Occurs when employers terminateemployees because of poor job performance, negative attitudes

toward work and co-workers, or misconduct such as dishonesty or

sexual harassment.Also occurs when firms are forced to eliminate jobs as a cost-

cutting measure, as in the case of downsizing or outsourcing.


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Maslows Hierarchy of Needs

Maslows Hierarchy of Needs: People have five levels of needsthat they seek to satisfy -

Physiological needs: Basic human needs such as food, shelter

and clothing.

Safety needs: Desire for physical and economic protection.

Social (belongingness) needs: Desire to be accepted by family,

friends and coworkers.

Esteem needs: Desire to feel valued and recognized by others.

Self-actualization needs: Desire to fulfill dreams and capabilities.

A satisfied need is not a motivator; only needs that remainunsatisfied can influence behavior.

Peoples needs are arranged in a hierarchy of importance; once

they satisfy one need, at least partially, another emerges and

demands satisfaction.


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Herzbergs Two-Factor Theory

Hygiene Factors (or maintenance factors): Refer to aspectsrelated to the job environment, including pay, job security, workingconditions, status, interpersonal relations, supervision, and company

policies.

Hygiene factors are important to job satisfaction though they may

not contribute directly to motivation.

Motivator Factors: Refer to specific aspects of job, including jobresponsibilities, achievement and recognition, and growth

opportunities.

Motivator factors can produce high levels of motivation if present.

Hygiene factors are extrinsic, while motivators are intrinsic.


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Expectancy Theory and EquityTheory

Expectancy Theory:Describes the process people

use to evaluate the likelihood

that their efforts will yield the

results they want, along with

the degree to which they wantthose results.

Equity Theory:Individuals perception of

fair and equitable

treatment.


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Goal-Setting Theory and MBO

Goal:A target, objective, or result that someone tries toaccomplish.

Goal-setting theory: Says that people will be motivated to the

extent to which they accept specific, challenging goals andreceive feedback that indicates their progress toward goal

achievement

Management by Objectives (MBO): Systematic and organized

approach that allows managers to focus on attainable goals andto achieve the best results based on the organizations resources.

It is a goal-setting technique introduced by Peter Drucker.


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Labor-Management Relations

Labor union: Group of workers who have banded together toachieve common goals in the areas of wages, hours, and

working conditions.

Found at local, national, and international levels.


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Collective Bargaining Process

Collective bargaining: Process of negotiation betweenmanagement and union representatives.

Issues involved can include:

Wages

Work hoursBenefits

Employee rights and seniority

Grievance handling

Layoffs


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Competitive Tactics of Unionsand Management

Union TacticsStrikes: Temporary work stoppage by employees until adispute has been settled or a contract signed.

Picketing: Workers marching in public protest against theiremployer.

Boycott: Organized attempt to keep the public frompurchasing the goods and services of the firm.

Management Tactics

Lockout:A management strike to put pressure on unionmembers by closing the firm.

Documents

MANAGING PEOPLE AND LABOUR