HRM and Business Wednesday/Friday 08/23-25/06 “Life-Long Learning Gem” Investopedia’s Term for 8/23/06: True Cost Economics

Your Challenge  Understand Chapters 1 & 2 of the text.  Understand Historical Development of HRM  Know the HRM Functions  Understand Strategic HRM  Develop the perspective that a “Strategic Value- Added Framework” should influence all HRM pursuits.

Textbook Resource  Website:  r/hr_manage/6e/students/index.html r/hr_manage/6e/students/index.html

100 Best Places to Work  How has J.M. Smucker Company managed to be on the list each year? A Simple Code: –Listen with your full attention –Look for the good in others –Have a sense of humor –Say “Thank You” for a job well-done

The Human Equation- Making Firms Profitable :  Employment security to build commitment  Selective hiring to get right people  Self-managed teams/decentralization  Higher compensation contingent on firm performance  Extensive training so employees identify and resolve problems  Reduced distinctions based on status  Extensive sharing of information

Managing People  The major goal of managing people: –Attract, retain, and develop a group of effective people  We do this as part of a business management system that includes managing: –physical resources (capital), –financial resources (capital), –marketing capabilities / other information, –and people.  The ultimate goal is to enhance shareholder value now and in the future

Goods and Services Goods and Services Physical Financial Marketing People More Productive organizations Less Productive organizations PRODUCTIVITY Physical Financial Marketing People

A Brief History of HRM  Industrial Revolution  Scientific Management  Emergence of Free Collective Bargaining  Early Industrial Psychology  Public and Private Sector Merit  Human Relations Movement  Behavioral Sciences  Employment Legislation/Court Decisions  HR as Strategic Partners in Successful Firms

Strategic HRM View

J.M. Smuckers  Managing People –Taking care of the HR functions –Communicating effectively –Motivating effectively –Strategic HRM

HR Functions  HR Planning  Job Analysis/Job Descriptions  EEO/AA  Recruiting  Selection  Training and Development  Performance Management  Compensation  Benefits  Safety and Health  Labor Relations  Organizational Exit

Communicating Effectively Formal/Informal Communications Verbal/Non Verbal Basic Communication Models Improving Communication  Listen Effectively/Actively  Know Communication Barriers

WHY IS MOTIVATION IMPORTANT? EFFECTIVE PERFORMANCE results from the interplay of a person’s Skills & Abilities, Motivation, Organizational Support Motivating Employees

Individual Differences Influence Motivation: +Attitudes and Values * Personality / Needs

Motivation Explanations ã REINFORCEMENT ã NEEDS ã GOAL-SETTING ã EQUITY ã EXPECTANCY

Reinforcement Theory Behavior is a function of its consequences. Law of Effect Behavior Modification

“Needs” Theories A need is a strong feeling of deficiency that creates an uncomfortable tension. A person will attempt to meet his/her need to reduce the tension. Maslow’s Need Hierarchy (Physiological, safety, belongingness, esteem, SA) Learned Needs Theory (nAchievement, nAffiliation, nPower)

Goal-Setting Theory ä Specific, written goals increase performance ä Difficult (accepted) goals increase performance ä Goal feedback increases performance äMost Powerful Motivational Application

Equity Theory Based on perceived fairness. O own / I own = O other / I other PERCEIVED INEQUITY MOTIVATES: Change inputs Change outcomes Change perceptions Change referent other Change the environment

Expectancy Theory EffortPerformance Outcomes EP Expectancy P O

Strategic HRM View