1 DEVELOPING & KEEPING HUMAN RESOURCES CHAPTER 18

2 Human Resource Management Human resources- the people employed in a business, commonly referred to as personnel  Contributions: labor, character, ethics, creativity, intellectual energy, & social & business connections Human resource management- the part of the business concerned with recruiting & managing employees  Main goals: to facilitate performance & improve productivity

3 7 Components of HR Management 1. Recruiting & Screening Employees From Within: Adv.: know their habits, low costs in training, little disruption of operations, & motivation to others in co. Disadv: resentment from others & limiting “new thinking” into the co. From Competitors: Adv: already have the skills, offer insight into competitors’ operations Disadv: costly cycle of raiding each other’s personnel & may cost more to be untrained in poor habits and then have to be re-trained properly Screening: Includes: applications, interviews, references & prospective employee’s immediate supervisor’s involvement

4 2. Managing Dealings with Unions  Labor union- organization that represents workers in their dealings with employers strengthen employees ability to bargain for wages, benefits, job security, & working conditions Employers may suffers some loss of control & may have strains on financial resources Employers cannot dismiss a union’s demand without a counteroffer

5 3. Overseeing Training & Development  Not only do new hires need to be trained but ongoing training should be offered  Educational activities- actions that prepare employees for advancing in the organization Example: human relations workshop  Developmental activities- actions that prepare managers to lead the co. into the future Example: industry conference

6 4 Steps in Planning a Training & Development Program: 1. Determine your need 2. Design your program  Figure 18.1, p Implement your program 4. Evaluate your program  Cost effective- economically worthwhile in terms of what is achieved for the amount of money spent

7 4. Overseeing Pay & Benefits  Review regularly  Make sure to have the ones required by law  Consider adding new ones Examples: pensions, profit sharing, & bonuses 5. Resolving Day-to-Day Problems Use problem-solving skills Employee complaint procedure- formal procedure for handling employee complaints

8 6. Ensuring Equal Opportunity  Employees cannot be discriminated against  Set standards for employee’s behavior  EEOC- Equal Employment Opportunity Commission: enforce regulations designed to protect employees Examples: Pregnancy Discrimination Act & sexual harassment

9 7. Handling Problem Employees & Terminations  Some employees may perform below expectations May help them through their problems May seek professional counseling May need disciplinary action  Dock pay or terminate them Termination:  Make sure to have a document trail to prove your cause  Give exact reasons  Explain severance pay & unemployment compensation

10 Maximizing Employee Performance 1. Provide Meaningful Work Job enlargement- the act of increasing the tasks, responsibilities, & scope of a job Job enrichment- the act of making a job more rewarding & less monotonous for the workers by adding elements at a different or higher skill level

11 2. Allowing scheduling flexibility Telecommuting- performing some or all of the job away from the business Family leave- employees take time off work to attend to significant personal events, such as births, deaths, & family illnesses, without fear of job loss Flextime- employees choose the work hours & days that are most effective for their personal lives

12 3. Involve employees in decision making Gives employees a sense of purpose Allows employees to see their own ideas put to work Management-by-objectives- employees are involved in setting their own objectives & gauging their own progress Work team- group of employees assigned a task No direct supervision & are responsible for their results

13 4. Give recognition Informal- praising good work Formal- sending letter of appreciation, plaques, or awards 5. Provide performance evaluations Performance evaluation- process of judging how well an employee has performed the duties & responsibilities associates with a job formal- in private, discuss strengths & weaknesses, usually once a year Informal- give tips to become more productive; can be done as often as necessary

14 6. Reward performance Used to acknowledge employee achievements Can be financial rewards, special assignments, job titles, or promotions

15 How managers influence motivation Douglas McGregor – Theory X and Theory Y  Theory X is the belief that employees are basically lazy and need constant supervision.  Theory Y is the belief that employees are responsible, like to work, and want intrinsic rewards.

16 Hygiene Factors Versus Motivating Factors Frederick Herzberg concludes that money is not necessarily a worker’s principal motivator. Hygiene Factors are factors that do not improve situations, but they do keep situations from getting worse.  Compensation, working conditions, fair company policies

17 Motivating factors are factors that motivate employees, such as achievement, recognition, responsibility, advancement, growth and the reward from doing the work itself.

18 Delegating Responsibility When you delegate, you give an employee the authority to and responsibility for carrying out some of your work.  Adv. Allows you to work on other things, motivates the employee.  Dis. The final responsibility rests on you.