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1 > > > > > > > > Chapter 9 Human Resource Management, Motivation, and Labor-Management Relations Kamrul Huda Talukdar Lecturer North South University

2 Human resource management - function of attracting, developing, and retaining enough qualified employees to perform the activities necessary to accomplish organizational objectives. Three main objectives: 1) Providing qualified, well-trained employees for the organization. 2) Maximizing employee effectiveness in the organization. 3) Satisfying individual employee needs through monetary compensation, benefits, opportunities to advance, and job satisfaction.

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4 Finding Qualified Candidates both internal and external sources (the Internet, newspapers, trade magazines, private employment agencies, college recruiting and internship offices, employee referrals HR must be creative in searching for qualified employees. Company websites (Career section)

5 Must follow legal requirements. Equal Employment Opportunity Hiring is a costly process for employers. Some employers require employment tests (knowledge of mechanical, technical, language, and computer skills) cognitive ability tests

6 Newly hired employee often completes an orientation program Inform employees about company policies Employee manuals Describe benefits/programs Training Training Programs On-the-job Training Classroom and Computer-based Training Management Development

7 Performance appraisal - evaluation of an employee s job performance Some firms conduct peer reviews while other firms allow employees to review their supervisors and managers. May 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.

8 Wages - 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. Most firms base compensation decisions on five factors: 1) Salaries and wages paid by other companies that compete for the same people 2) Government legislation, including the federal, state, or local minimum wage 3) The cost of living 4) The firm s ability to pay 5) Worker productivity

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10 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

11 Allow employees to adjust their working hours and places of work to accommodate their personal needs. Flextime allows employees to set their own work hours within constraints specified by the firm. A compressed workweek allows employees to work the regular number of weekly hours in fewer than the typical five days. A job sharing program allows two or more employees to divide the tasks of one job. A home-based work program allows employees, or telecommuters, to perform their jobs from home instead of at the workplace. Nearly 75% of the U.S. workforce will soon have the ability to telecommute from home or almost anywhere else.

12 Voluntary turnover: employees leave firms to start their 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. Successful companies are clearly focused on retaining their best workers. Involuntary turnover: employers terminate employees because of poor job performance, negative attitudes toward work and co-workers, or misconduct such as dishonesty or sexual harassment. Necessary because poor performers lower productivity and employee morale. Employers must carefully document reasons when terminating employees.

13 Downsizing - process of reducing the number of employees within a firm by eliminating jobs Downsizing doesn t guarantee improvements or cost savings. Devastating impact on employee morale Encourages employees to put individual career success ahead of company loyalty Outsourcing - contracting with another business to perform tasks or functions previously handled by internal staff members Focus on business competitiveness and flexibility Get best price among competing bidders while avoiding long-term costs of inhouse operations

14 Motivation starts with good employee morale, the mental attitude of employees toward their employer and jobs. High morale = sign of a well-managed organization Poor morale shows up through absenteeism, employee turnover, strikes, falling productivity, and rising employee grievances

15 Maslow s hierarchy of needs: people have five levels of needs that they seek to satisfy. A satisfied need is not a motivator; only needs that remain unsatisfied can influence behavior. People s needs are arranged in a hierarchy of importance; once they satisfy one need, at least partially, another emerges and demands satisfaction. Physiological needs Safety needs Social (belongingness) needs Esteem needs Self-actualization needs

16 Maslow s needs Physiological/Basic Safety Social Self-esteem Self-actualisations Examples of how these may be met in the workplace Pay Decent working conditions Health and safety provision Job security Staff room Team-working opportunities Recognition e.g. Employee of the month The chance to make a difference Training Opportunities for promotion and career progression

17 Job enlargement: job design that expands an employee s responsibilities by increasing the number and variety of tasks assigned to the worker. Job enrichment: change in job duties to increase employees authority in planning their work, deciding how it should be done, and learning new skills.

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