Day 2 – Morning Presentation HRM Focus Recruiting Retention – how to retain key skills Rouse Re-Developing Skills

What do people want from work? What makes you happy at work? Small group discussion

Herzberg’s Motivation Theory

Studies have shown that people are motivated … Intrinsic A person’s internal desire to do something, Based on interest, challenge, growth, which leads to personal satisfaction. Job design; Job Rotation; Job Enlargement; Job Enrichment; Organizational Culture; Work/life balance; Recognition Extrinsic Motivation that comes from outside the person, such as pay, bonuses, and other tangible rewards.

Agenda Intrinsic Job design Job rotation Job enlargement Job enrichment Organizational Culture Work * Life Balance Extrinsic Compensation Other incentives Types of plans Satisfying Needs Other – Equity perceptions

Intrinsic Considerations Autonomy - choice Variety – non repetition Task Identity – like what they do Feedback – want to know how they are doing Task Significance - meaning

Variety Job Rotation Job rotation moves employees from job to job. Jobs themselves are not actually changed; only the workers are rotated. Chapter 1: Strategic Importance of Human Resource Management

Variety Job enlargement expands the number of related tasks in the job. It adds similar duties to provide greater variety.

Job Enrichment Job enrichment adds new sources of needs satisfaction to jobs. It increases responsibilities, autonomy, and control. Chapter 1: Strategic Importance of Human Resource Management

Personal Experiences? Job rotation Job enlargement Job enrichment Which did you like the most?

Organizational Culture (Intrinsic Motivation) What is the culture of your School? How would you describe it to others?

Examining Organizational Cultures Cultures are collective beliefs that in turn shape behavior. They are a form of a shared paradigm. Cultures are based in part on emotion which are particularly conspicuous when change is threatened. Cultures are based on a foundation of history. The potential loss of the past in part explains the resistance to change.

Examining Organizational Cultures Cultures are defined by, and subsequently define symbols. Although cultures resist change, they are constantly changing. This paradoxical condition limits the speed of change and consumes large quantities of energy. Cultures are more probabilistic than deterministic - a set of fuzzy imperatives.

Schein – what creates culture What Leaders Pay Attention to, Measure, and Control Leader Reactions to Critical Incidents and Organizational Crises Observed Criteria for Resource Allocation Deliberate Role Modeling, Teaching, and Coaching Observed Criteria for Recruitment, Selection, Promotion, Retirement, and Excommunication Organization Design and Structure Rites and Rituals of the Organization Design of Physical Space, Facades, and Buildings Stories About Important Events and People Discuss HRM’s role in shaping culture?

Work life Balance (Intrinsic Motivation) Alternative work schedules Flex time offered by 59 / 100 best companies to work for in NA Telecommuting 18 / 100 Child care services Family leave Unreasonable workloads biggest reason for people leaving

Summary - Intrinsic Well designed job; Interesting job Responsibility Control Meaning Safe Performance / inclusive Culture; Work/life balance

Extrinsic - Compensation What is an effective compensation plan? What are the problems if you have a bad plan? What are the key issues? Evaluate the differences between different incentive plans. Revisit Pfeffer

Jeffry Pfeffer - article Use of variable pay contingent on some measure of performance is a key HRM success factor.

Objectives of Compensation Plans Acquire qualified individuals Retain present employees Ensure equity Reward desired behaviour Control costs Comply with legal requirements Administrative efficiency

Types of Compensation Plans Piece work Skills-based pay Profit-related pay Profit sharing Individual performance-related pay Team-based pay Employee stock ownership plan

Maslow revisited (or why compensation works) Pay Levels Absolute Relative Needs Served Physiological & Security (food, clothing, shelter) Social & Esteem (keeping up with the Jones)

Discussion – Record Company Executives - stock up1$ = $1,500 Hourly - 10% sales increased = get a day holiday Production - $.25 / record Sales - new store = $50 Questions Problems with system? Recommendations? Why?

Compensation Issue - Equity Internal Equity - Perceived equity of a pay system within an organization. External Equity - Perceived fairness in pay relative to what other employers are paying for the same type of work. e.g. Studies made of wages and salaries paid by other organizations within the employer’s labour market.

Challenges To Equity Market Forces - some jobs need to be paid more (others less) Union power Productivity - value added Government constraints minimum wage contracts with Government Individual Perceptions

Employee Motivation & Job Satisfaction Direction, intensity, duration - key points regarding motivation causes Performance Old Job Satisfaction Equitable Rewards New Performance Job Satisfaction causes

Management Reward Follies We hope for: Teamwork and collaboration Innovative thinking and risk taking Development of people skills Employee involvement and empowerment High achievement Long-term growth Commitment to total quality Candor But we reward: The best individual team members Proven methods and no mistakes Technical achievements and accomplishments Tight control over operations, resources Another year’s efforts Quarterly earnings Shipment on schedule, even with defects Reporting good news This material is found on page 140-141. A recent survey suggests that three themes seem to account for some of the biggest obstacles in dealing with the folly. First, individuals are unable to break out of old ways of thinking about reward and recognition practices. This is demonstrated in such things as an emphasis on quantifiable behaviours, to the exclusion of non-quantifiable behaviours; employees having an entitlement mentality (i.e., they don’t support changing the reward system because they are comfortable with the current behaviours that are rewarded), and management being reluctant to change the existing performance system. A second factor is that organizations often don’t look at the big picture of their performance system. Consequently, rewards are allocated at subunit levels, with the result that units often compete against each other. Finally, both management and shareholders often focus on short-term results, rather than rewarding employees for planning for longer ranges.

Summary - Opportunities for improving Employee Retention Team Orientation Respect for People Use of realistic job previews Fair appraisal reviews Exclusion of political factors Fair compensation structures Communication Performance-based compensation Pay incentives Valued benefits Safe Job enrichment and job satisfaction Alternative work schedules Family leave Child care services Training opportunities Promotion Internal transfers Diversity management Prevention of sexual harassment Intrinsic Extrinsic

Case Study Evaluating the non-traditional Incentive Systems at Howe 2 Ski Store Assume you are a consultant hired to advise Maria Howe – what would you recommend she do to solve the problems at her stores? Hint – examine the intrinsic and extrinsic motivators Be sure to support your answer.

Case Summary Company started by Maria Howe Three “Ski and Windsurfing” shops “State-of-art” skis and clothing (high end) Therefore, she needs good “sales people” and staff Problems are now occurring – Increased competition + Employee productivity is going down – what to do? Buyers – who purchase the equipment Moulders – technicians who get skis ready / repair Sales clerks – on the floor people who sell Credit officers – arrange loans for clients Cashiers – at the check out till Stockers – who fill the selves and make displays

Presentation Time

Company Feedback Key - discuss what is happening in your organization but you also need to critique it - why is it good or bad (link to course material)