Part 3

Management:
Empowering
People to Achieve
Business
Objectives

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 Chapter 9
Human Resource
Management,
Motivation, and
Labor-
Management
Relations
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 Chapter Objectives
1. Explain the importance of human resource
management, the responsibilities of human resource
managers, and the role of human resource
planContingentn organization’s competitive strategy.
2. Describe how recruitment and selection, training, and
evaluation contribute to placing the right person in a job.
3. Outline the methods employers use to compensate
employees through pay systems and benefit programs.
4. Discuss employee separation and the impact of
downsizing and outsourcing.
5. Explain how Maslow’s hierarchy of needs theory, job
design, and managers’ attitudes relate to employee
motivation.

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 Chapter Objectives
6. Summarize the role of labor unions and list their primary
goals.
7. Outline the tactics of labor and management in conflicts
between them.
8. Describe employee-management relations in nonunion
organizations.

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 Human Resource Management Is Vital
to All Organizations

 Human resource management—function of

attracting, developing, and retaining enough
qualified employees to perform the activities
necessary to accomplish organizational
objectives.
 Human resource managers responsible for:
Developing specific programs and activities
Creating a work environment that
generates employee satisfaction and
efficiency

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 Rules for
Clerks,
1905

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 Human Resource Management Is Vital
to All Organizations

 Professional Employer Organizations

(PEOs)—company that helps small and mid-
sized firms with a wide range of human
resource services including hiring and training
employees, administering payroll and benefits
programs, handling workers’ compensation
and unemployment insurance, and
maintaining compliance with labor laws

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 Human Resource Planning

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 Human Resource Planning
 Human Resource Managers:
Develop staffing plans based on the
organization's competitive strategies
Responsible for adjusting their company’s
workforce to meet requirements of:
 Expanding in new markets
 Reducing costs
 Adapting to new technology
Formulate long and short-term plans to
provide needed employees

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 Recruitment and Selection
 Human resource managers strive to match
applicants’ skills with organizational needs
Finding Qualified Candidates

Selecting and Hiring Employees

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 Steps in the Recruitment and Selection Process

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 Recruitment and Selection
 Finding Qualified Candidates
Access internal and external sources
Consider internal employees first
Look outside if qualified candidates not
available internally

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 Recruitment and Selection
 Selecting and Hiring Employees
Must follow the requirements set by federal
and state law
Some firms try to screen out employees by
requiring drug testing or employment tests
for job applicants
 Employment at will—practice that
allows the employment relationship to
begin or end at any time at the decision
of either the employee or the employer
for any reason

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 Orientation, Training, and Evaluation
 Training builds
skills and
knowledge that
will prepare
employees for
new job
opportunities
New Horizons:
Communicating
the Importance
of Training

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 Orientation, Training, and Evaluation
 On-the-job training prepares employees for
job duties by allowing them to perform the
tasks under the guidance of experienced
employees
 Classroom and Computer-Based Training
Forms of classroom instruction such as
lectures, conferences, audiovisual aids,
programmed instruction, and special
machines to teach employees everything
from basic math and language skills to
complex, highly skilled tasks

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 Orientation, Training, and Evaluation

 Management development program: training

designed to improve the skills and broaden
the knowledge of current and potential
executives
Benchmarking

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 Orientation, Training, and Evaluation
 Performance Appraisals—evaluation of an
employee’s job performance by comparing
actual results with desired outcomes.
Based on this evaluation, managers make
objective decisions about compensation,
promotions, additional training needs,
transfers, or firings
360-degree performance review:
process that gathers feedback from a
review panel of about 8 to 12 people,
including co-workers, team members,
subordinates, and sometimes customers

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 Compensation
 Wage—compensation based on an hourly
pay rate or the amount of output produced.
 Salary—compensation calculated on a
periodic basis, such as weekly or monthly.

 Living wage

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 Compensation
 Most firms base their compensation policies
on five factors:
Salaries and wages paid by others
Government legislation
Cost of living
Firm’s ability to pay
Worker productivity

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 Four Forms of Incentive Compensation

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 Compensation
 Employee Benefits—rewards such as
retirement plans, health insurance, vacation,
and tuition reimbursement provided for
employees either entirely or in part at the
company’s expense.
Some benefits, e.g. Social Security
contributions, are required by law

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 Compensation
 Flexible benefit plan (cafeteria plan)—
benefit system that offers employees a range
of options from which they can choose they
types of benefits they receive
 Flexible work plan—employment that allows
personnel to adjust their working hours and
places of work to accommodate their
personal lives
Flextime
Compressed workweek
Job Sharing
Home-based work program

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 Employee Separation
 Employer or employee can take the initiative
to terminate employment
Exit interview—conversation designed to
find out why an employee decided to leave

 Downsizing—process of reducing the

number of employees within a firm by
eliminating jobs.

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 Employee Separation
 Outsourcing—practice of contracting out
work previously performed by company
employees.
Complements today’s focus on business
competitiveness and flexibility

 Using Contingent Workers

Contingent worker—employee who works
part time, temporarily, or for the period of
time specified in a contract.

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 Current Want-Ads for Contingent Workers

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 Motivating Employees
 Effective human resource management
makes important contributions to employee
motivation
 Morale—mental attitude of employees toward
their employer and jobs.

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 Motivating Employees
 Need—simply a lack of some useful benefit
 Motive—inner state that directs a person
toward the goal of satisfying a felt need

 The Process of Motivation

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 Motivating Employees
 Maslow’s Hierarchy of Needs Theory
According to the theory, people have five
levels of needs that they seek to satisfy:
 Physiological
 Safety
 Social
 Esteem
 Self-actualization

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 Motivating Employees
 Job Design and Motivation
Job enlargement—job design that
expands an employee’s responsibilities by
increasing the number and variety of tasks
they entail.

Job enrichment—change in job duties to

increase employee’s authority in planning
their work, deciding how it should be done,
and learning new skills.

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 Motivating Employees
 Manager’s Attitudes and Motivation
Worker motivation is influenced by the
attitudes that managers display towards
employees
Theory X—assumption that employees
dislike work and will try to avoid it
Theory Y—assumption that employees
enjoy work and seek social, esteem, and
self-actualization fulfillment
Theory Z—assumption that employee
involvement is key to productivity and
quality of work life

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 Theory Z Management: A Blend of American
and Japanese Methods

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 Union-Management Relations
 Development of Labor Unions
Labor Unions—group of workers who
have banded together to achieve common
goals in the areas of wages, hours, and
working conditions.
AFL—CIO

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 The World’s Tallest Roller Coaster: Union-
Made at Cedar Point Amusement Park,
Sandusky, OH

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 Labor
Legislation

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 Union-Management Relations
 Collective Bargaining Process
Collective Bargaining—process of
negotiation between management and
union representatives for the purpose of
arriving at mutually acceptable wages and
working conditions for employees.

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 Steps in the Grievance Procedure

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 Union-Management Relations
 Settling Union-Management Disputes
Grievance—formal complaint filed by an
employee or a union that management is
violating some provision of a union
contract.
Mediation—process which brings in a third
party, called a mediator, to make
recommendations for settling differences
Arbitration—bringing in an impartial third
party called an arbitrator to render a
binding decision in the dispute

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 Union-Management Relations
 Competitive Tactics of Unions and Management
 Union Tactics
Strike (walkout)—temporary work stoppage by
employees until a dispute is been settled or a
contract signed
Picketing—workers marching at a plant
entrance to protest some management
practice
Boycott—effort to prevent people from
purchasing a firm’s goods or services

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 Union-Management Relations
 Competitive Tactics of Unions and Management
 Management Tactics
Lockout—a management strike to bring
pressure on union members by closing the firm
 Strikebreakers
Injunction—court order prohibiting some
practice – to prevent excessive picketing or
certain unfair union practices
Employers’ associations—employers group
that cooperates and presents a united front in
dealing with labor unions
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 Union-Management Relations
 Employee-Management Relations in
Nonunion Organizations
Nonunion companies often offer
compensation and benefits comparable to
those of unionized firms to avert
unionization

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 Union-Management Relations
 Employee-Management Relations in
Nonunion Organizations
Grievance Programs for Nonunion
Employees
 Open-door policies
 Employee hotlines
 Peer review boards
 Mediation and arbitration

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 Grievance
Programs
for
Nonunion
Employees

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 Union-Management Relations
 Employee-Management Relations in
Nonunion Organizations
Job Security in Nonunion Companies
 Primary motivation for workers to form
labor unions
 To reduce staffing levels, firms may try
to provide alternatives to layoffs

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