Human resource plans must be based on an organization s overall competitive strategies. In conjunction with other managers, human resource managers

Size: px
Start display at page:

Download "Human resource plans must be based on an organization s overall competitive strategies. In conjunction with other managers, human resource managers"

Transcription

1 1

2 2

3 Human resource plans must be based on an organization s overall competitive strategies. In conjunction with other managers, human resource managers predict how many employees a firm or department will need and what skills those workers should bring to the job along with what skills they might learn on the job. Human resource managers are often consulted when a firm is considering reducing costs by laying off workers or increasing costs by hiring new ones. They may be involved in both long-term and short-term planning. 3

4 Human resource managers recruit and help select the right workers for a company. To ensure that job candidates bring the necessary skills to the job or have the desire and ability to learn them, most firms implement the recruitment and selection process. 1. Identify Job Requirements: To find the right person for each position, HR manager should carefully identify the requirements of the job. 2. Choose Sources of Candidates: Sources can include web sites, schools, employee referrals, advertisements in different platforms. Internet recruiting is increasingly used because it is such a quick, efficient, and inexpensive way to reach a large pool of job 3. Review Applications and Resumes: The HR manager should review all the applications and decide to interview with the most suitable ones. 4. Interview Candidates: There are regulations to avoid discrimination in the recruitment process. For example in USA, an interviewer may not ask any questions about marital status, children, race or nationality, religion, age, criminal records, mental illness, medical history, or alcohol and substance abuse problems. 5. Conduct Employment Tests and Check References: The tests needed for job specifications should be conducted and the references should be checked. 6. Conduct Follow-Up Interviews: After eliminating some employees, HR manager 4

5 can conduct follow-up interviews with the remaining ones. 7. Select a Candidate and Negotiate an Offer: Finally, HR manager decides on one person and gives an offer. Then they negotiate on the compensation and other benefits. 4

6 Once hired, employees need to know what is expected of them and how well they are performing. Companies provide this information through orientation, training, and evaluation. A new hire may complete an orientation program administered jointly by the human resource personnel and the department in which the employee will work. During orientation, employees learn about company policies regarding their rights and benefits. They might receive an employee manual that includes the company s code of ethics and code of conduct. And they ll usually receive some form of training. Training Programs Training is a good investment for both employers and employees. Training provides workers with an opportunity to build their skills and knowledge, preparing them for new job opportunities within the company. It also provides employers with a better chance at retaining long-term, loyal, high-performing workers. On-the-Job Training: One popular teaching method is on-the-job training, which prepares employees for job duties by allowing them to perform tasks under the guidance of experienced employees. A variation of on-the-job training is apprenticeship training, in which an employee learns a job by serving for a time as an assistant to a trained worker. Classroom Training: Many firms offer some form of classroom instruction such as lectures, conferences, and workshops or seminars. 5

7 Computer-Based Training: Many firms are replacing classroom training with computer-based training programs, which can significantly reduce the cost of training. Computer-based training offers consistent presentations, along with videos that can simulate the work environment. Employees can learn at their own pace without having to sign up for a class. Through online training programs, employees can engage in interactive learning they might conference with a mentor or instructor who is located elsewhere or they might participate in a simulation requiring them to make decisions related to their work. An extension of computerbased training is multimedia training, which may combine text with sound, 3D animation, high-resolution graphics, games, simulations, and the like. Management Development Program: A management development program provides training designed to improve the skills and broaden the knowledge of current or future managers and executives. Training may be aimed at increasing specific technical knowledge or more general knowledge in areas such as leadership and interpersonal skills. 5

8 Performance Appraisals Feedback about performance is the best way for a company and its employees to improve. Most firms use annual performance appraisals to evaluate an employee s job performance and provide feedback about it. A performance appraisal can include assessments of everything from attendance to goals met. Based on this evaluation, a manager will make decisions about compensation, promotion, additional training needs, transfers, or even termination. Some firms conduct peer reviews, in which employees assess the performance of their co-workers, while other firms ask employees to review their supervisors and managers. One such performance appraisal is the 360-degree performance review, a process that gathers feedback from a review panel of 8 to 12 people, including coworkers, supervisors, team members, subordinates, and sometimes even customers. The idea is to get as much frank feedback from as many perspectives as possible. By its very nature, this kind of review involves a lot of work, but employees benefit from it because they are more involved with the process and ultimately better understand their own strengths, weaknesses, and roles in the company. Managers benefit because they get much more in-depth feedback from all parts of the organization. 6

9 The amount employees are paid, along with whatever benefits they receive, has a tremendous influence on where they live, what they eat, and how they spend their leisure time. It also has an effect on job satisfaction. Balancing compensation for employees at all job levels can be a challenge for human resource managers. And while compensation certainly is a factor in job satisfaction, it isn t the only one. The terms wages and salary are often used interchangeably, but actually are different. Wages are based on an hourly pay rate or the amount of work accomplished. Typical wage earners are factory workers, construction workers, auto mechanics, retail salespeople, and restaurant wait staff. Salaries are calculated periodically, such as weekly or monthly. Salaried employees receive a set amount of pay that does not fluctuate with the number of hours worked. Whereas wage earners receive overtime pay, salaried workers do not. Office managers, executives, and professional employees usually receive salaries. 7

10 Employee Benefits In addition to wages and salaries, firms provide benefits to employees and their families as part of their compensation. Employee benefits such as vacation, retirement plans, profit-sharing, health insurance, gym memberships, child and elder care, and tuition reimbursement are sometimes offered by the company. Some benefits are required by law. U.S. firms are required to make Social Security and Medicare contributions, as well as payments to state unemployment insurance and workers compensation programs, which protect workers in case of job-related injuries or illnesses. In response to increasing diversity in the workplace, firms are developing creative ways to tailor their benefit plans to the needs of employees. One approach sets up flexible benefit plans, also called cafeteria plans. This system offers employees a choice of benefits, including different types of medical insurance, dental and vision plans, and life and disability insurance. Many firms have moved toward the option of flexible work plans, which are benefits that allow employees to adjust their working hours or places of work according to their needs. 8

11 Voluntary and Involuntary Turnover Turnover occurs when an employee leaves a job. Voluntary turnover occurs when the employee resigns perhaps to take another job, start a new business, or retire. The human resource manager might conduct an exit interview with the employee to learn why he or she is leaving; this conversation can provide valuable information to a firm. Involuntary turnover occurs when employees are terminated because of poor job performance or unethical behavior. No matter how necessary a termination may be, it is never easy for the manager or the employee. Downsizing As the economy tightens, companies are often faced with the hard choice of terminating employees in order to cut costs or streamline the organization. Downsizing is the process of reducing the number of employees within a firm by eliminating jobs. Outsourcing Another way that firms shrink themselves into leaner organizations is by outsourcing. Outsourcing involves transferring jobs from inside a firm to outside the firm. Jobs that are typically outsourced include office maintenance, deliveries, food service, and security. In general, in order to save expenses and remain flexible, companies will try to outsource functions that are not part of their core business. 9

12 Generally speaking, managers use rewards and punishments to motivate employees. Extrinsic rewards are external to the work itself, such as pay, fringe benefits, and praise. Intrinsic rewards are feelings related to performing the job, such as feeling proud about meeting a deadline or achieving a sales goal. Punishment involves a negative consequence for such behavior as being late, skipping staff meetings, or treating a customer poorly. 10

13 11

14 Maslow's hierarchy of needs has become a widely accepted list of human needs based on these important assumptions: People s needs depend on what they already possess. 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. 12

15 Frederick Herzberg a social psychologist and consultant surveyed workers to find out when they felt good or bad about their jobs. He learned that certain factors were important to job satisfaction though they might not contribute directly to motivation. These hygiene factors (or maintenance factors) refer to aspects of work that are not directly related to a task itself but instead related to the job environment, including pay, job security, working conditions, status, interpersonal relations, technical supervision, and company policies. Motivator factors, on the other hand, can produce high levels of motivation when they are present. These relate directly to the specific aspects of a job, including job responsibilities, achievement and recognition, and opportunities for growth. Hygiene factors are extrinsic, while motivators are intrinsic. Managers should remember that hygiene factors, though not motivational, can result in satisfaction. But if managers want to motivate employees, they should emphasize recognition, achievement, and growth. 13

16 Victor Vroom s expectancy theory of motivation 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 want those results. Expectancy theory suggests that people use three factors to determine how much effort to put forth. First is a person s subjective prediction that a certain effort will lead to the desired result. This is the can do component of an employee s approach to work. Second is the value of the outcome (reward) to the person. Third is the person s assessment of how likely a successful performance will lead to a desirable reward. In short, an employee is motivated if he or she thinks he or she can complete a task. Next, the employee assesses the reward for accomplishing the task and is motivated if the reward is worth the effort. 14

17 Equity theory was first developed in 1969 by J. Stacy Adams. Equity theory is concerned with an individual s perception of fair and equitable treatment. In their work, employees first consider their effort and then their rewards. Next, employees compare their results against those of their co-workers. If employees feel they are under-rewarded for their effort in comparison with others doing similar work, equity theory suggests they will decrease their effort to restore the balance. Conversely, if employees feel they are over-rewarded, they will feel guilty and put more effort into their job to restore equity and reduce guilt. 15

18 Goal specificity (=hedefin kesinliği, netliği) is the extent to which goals are clear and concrete. A goal such as we want to reduce carbon emissions is vague and hard to pin down. But, we want to reduce carbon emissions by 2 percent gives employees a clear target. Goal difficulty outlines how hard the goal is to reach. A more difficult goal, such as we want to reduce carbon emissions by 5 percent in three years can actually be more motivating than the easier goal. Goal acceptance is the extent to which people understand and agree to the goal. If a goal is too challenging such as reducing the firm s carbon emissions by 20 percent in two years people are likely to reject it. Performance feedback is information about performance and how well the goal has been met. Goal setting typically won t work unless performance feedback is provided. Goals help focus workers attention on the important parts of their jobs. Goals also energize and motivate people. They create a positive tension between the current state of affairs and the desired state. This tension is satisfied by meeting the goal or abandoning it. Peter Drucker introduced a goal-setting technique called management by objectives 16

19 (MBO) in his book, The Practice of Management. MBO is a systematic approach that allows managers to focus on attainable goals and to achieve the best results based on the organization s resources. MBO helps motivate individuals by aligning their objectives with the goals of the organization, increasing overall organizational performance. MBO clearly outlines people s tasks, goals, and contributions to the company. MBO is a collaborative process between managers and employees. MBO principles include the following: a series of related organizational goals and objectives; specific objectives for each person; participative decision making; a set time period to accomplish goals; and performance evaluation and feedback. 16

20 Job enrichment involves an expansion of job duties that empowers an employee to make decisions and learn new skills leading toward career growth. The Pampered Chef is a direct seller of kitchen tools and housewares that gives its managers and sales consultants the power to make decisions about many aspects of their work. Job enlargement is a job design that expands an employee s responsibilities by increasing the number and variety of tasks. Redesigning the production process is one way to accomplish this. Instead of having an assembly line on which each worker repeatedly completes the same task, modular work areas allow employees to complete a variety of tasks, which may result in the construction of an entire product. Job rotation involves systematically moving employees from one job to another. Job rotation increases the range of activities by introducing workers to more jobs and therefore more tasks. The goal is to increase employees interest in their jobs and allow them to learn more about the company. 17

21 Douglas McGregor, a student of Maslow, studied motivation from the perspective of how managers view employees. After observing managers interactions with employees, McGregor created two basic labels for the assumptions that different managers make about their workers behavior, and how these assumptions affect management styles. Theory X assumes that employees dislike work and try to avoid it whenever possible, so management must force them to do their jobs. Theory X managers believe that the average worker prefers to receive instructions, avoid responsibility, take little initiative, and views money and job security as the only valid motivators Maslow s lower order of needs. Theory Y assumes that the typical person actually likes work and will seek and accept greater responsibility. Theory Y managers assume that most people can think of creative ways to solve work-related problems, and should be given the opportunity to participate in decision making. Unlike the traditional management philosophy that relies on external control and constant supervision, Theory Y emphasizes self-control and self-direction Maslow s higher order of needs. 18