Functions of the Human Resources Department

1) Employment matters  Recruiting, selecting and appointing all new staff  Terminating employment through redundancies, retirement or dismissal  Negotiating procedures with trade unions  Organising staff appraisal systems

2) Record Keeping  Keeps records of all the firm’s staff (ie: application forms, references, details of courses + promotions

3) Industrial Relations  Negotiating wages, salaries and working conditions with the trade unions

4) Welfare and Training  Organising welfare facilities for workers (ie: childcare, medical centres and first-aid rooms, sports and social centres)  Organising training so that staff are kept up to date and have the skills the firm needs.

Why do people work hard? To earn money To live Enjoy their job Want to be happy + valued at work To gain promotion To earn the respect of their bosses or fellow workers Enjoy being with other people Would be bored at home

Motivation = People’s reasons or motives for doing something. To get the best out of their workers, firms need to understand why people work and what might make them willing to work harder. Well-motivated workers are more likely to work harder.

There are a number of ways firms can motivate their works: Good pay, holidays and fringe benefits; Incentive schemes such as bonuses and performance-related pay; Good promotion opportunities; Training schemes to keep workers up to date and to give the chance to learn the skills needed to gain promotion; Job security and job satisfaction.

There are a number of theories about what motivates workers.

Theory 1: Maslow’s Theory He said the people have 5 types of needs that they try to satisfy. Once the first set of needs has been satisfied, it no longer works as a motivator so people move on to the next set of needs. “Maslow’s Hierarchy of Needs” Self-Actualisation Needs Esteem Needs Social Needs Safety Needs Basic Needs The satisfaction gain from realising personal ambition or personal targets People need to feel they belong, they want to be part of a group + enjoy friendship Food, clothing and shelter – the basic necessities of life People need to feel respected by others for their abilities. People need to be sure + feel secure that they can continue to survive.

Maslow’s Theory applied to Human Resources Self-Actualisation Needs – Esteem Needs – Social Needs – Safety Needs – Basic Needs -

Theory 2: Herzberg’s Theory Herzberg developed the idea of job satisfaction. This is the pleasure that people get from their work. To gain job satisfaction, Herzberg thought 4 factors need to be present: 1. Recognition – 2. Achievement – 3. Promotion – 4. Responsibility – If people are to enjoy their work + be well motivated, each of these factors ought to be present.

Hertzberg’s Theory continued: Herzberg also noted that there were Hygiene factors that are essential for a happy workforce. These can include: If these factors are missing, morale + motivation are lower + can lead to unhappy workers + a fall in output. ***The hygiene factors do not motivate workers but they can demotivate them if they are not present***

Theory 3: McGregor’s Theory He said workers can be viewed in one of two ways and a firm’s policy towards its workers will depend on which way they are viewed: Theory X Workers cannot be trusted + work only for money. They do not like work + will do as little as possible if they can get away with it. They therefore have to be supervised closely, told what to do and made to work. They avoid responsibility and they lack ambition. Theory Y Workers enjoy their work and work hard for a fair reward. They like to be given responsibility, can be trusted and are reliable. They are able to organise themselves, can take initiatives and are willing to make decisions. Money is not their only motivation.

McGregor’s Theory applied to Human Resources People’s motivation is affected by the way they feel they are treated. What would be the implications of each view on how the workers perform? Theory XTheory Y