Explain the importance of human
Describe how recruitment and
selection contribute to placing the
right person in a job.
Explain how training programs
and performance appraisals help
employees grow and develop.
Outline the methods employers
use to compensate employees.
Discuss employee separation and
the impact of downsizing and
Explain how Maslow’s hierarchy-
of-needs theory, goal setting, job
design, and managers’ attitudes
relate to employee motivation.
1) Providing qualified, well-trained
employees for the organization.
2) Maximizing employee effectiveness in
3) Satisfying individual employee needs
through monetary compensation,
benefits, opportunities to advance, and
Vital to All
Human resource management - function of
attracting, developing, and retaining enough
qualified employees to perform the activities
necessary to accomplish organizational
objectives. Three main objectives:
• 35% of human resource professionals report a
shortage of job candidates with degrees related field.
• HR must be creative in searching for qualified
• Businesses look both internally and externally.
• Must follow legal requirements.
• Equal Employment Opportunity
• Failure to follow these exposes
company to risk of litigation.
• Hiring is a costly process for employers.
• Some employers require employment
Selecting and Hiring
Newly hired employee often completes an
› Inform employees about company policies
› Employee manuals
› Describe benefits/programs
› On-the-job Training
› Classroom and Computer-based Training
› Management Development
• Performance appraisal - evaluation of an employee’s
• Some firms conduct peer reviews while other firms
allow employees to review their supervisors and
• May conduct a 360-degree performance review, a
process that gathers feedback from a review panel
that includes co-workers, supervisors, team
members, subordinates, and sometimes customers.
• Wages - compensation based on an hourly pay rate or the
amount of output produced.
• Salary - compensation calculated on a periodic basis, such
as weekly or monthly.
• Most firms base compensation decisions on five factors:
1) Salaries and wages paid by other companies that compete
for the same people
2) Government legislation, including the federal or local
3) The cost of living
4) The firm’s ability to pay
5) Worker productivity
• Employee Benefits - Rewards such as retirement
health insurance, vacation, and tuition reimbursement
provided for employees either entirely or in part at the
• EOBI, medical leaves, increments, etc
• Costs of health care are increasingly being shifted to
• Retirement plans have become a big area of concern
• Employees are provided a range of options from
which they can choose.
– Medical, dental, vision, life and disability insurance
• Many companies also offer flexible time off policies
instead of establishing a set number of holidays,
vacations days and sick days.
• Companies sometimes provide paid time off (PTO)
• Allow employees to adjust their working hours and places
of work to accommodate their personal needs.
• Flextime allows employees to set their own work hours
within constraints specified by the firm.
• A compressed workweek allows employees to work the
regular number of weekly hours in fewer than the typical
• A job sharing program allows two or more employees to
divide the tasks of one job.
• A home-based work program allows employees, or
telecommuters, to perform their jobs from home instead
of at the workplace
• Voluntary turnover: employees leave firms to start their own
businesses, take jobs with other firms, move to another city, or retire.
– Some firms ask employees who leave voluntarily to participate in exit
interviews to find out why they decided to leave.
– Successful companies are clearly focused on retaining their best workers.
• Involuntary turnover: employers terminate employees because of poor
job performance, negative attitudes toward work and co-workers, or
misconduct such as dishonesty or sexual harassment.
– Necessary because poor performers lower productivity and
– Employers must carefully document reasons when terminating
• Downsizing - process of
reducing the number of
employees within a firm by
• Downsizing doesn’t guarantee
improvements or cost savings.
• Devastating impact on employee
• Encourages employees to put
individual career success ahead
of company loyalty
• Outsourcing - contracting with
another business to perform
tasks or functions previously
handled by internal staff
• Focus on business
competitiveness and flexibility
• Get best price among
competing bidders while
avoiding long-term costs of in-
• Motivation starts with good employee morale, the mental
attitude of employees toward their employer and jobs.
• High morale = sign of a well-managed organization
• Poor morale shows up through absenteeism,
employee turnover, strikes, falling productivity, and
rising employee grievances
• Maslow’s hierarchy of needs: people have five levels of needs
that they seek to satisfy.
• 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
– Physiological needs
– Safety needs
– Social (belongingness) needs
– Esteem needs
– Self-actualization needs
Maslow’s Hierarchy of
The job itself
Expectancy Theory – the
process people use to
evaluate the likelihood
their effort will yield the
desired outcome and
how much they want the
Equity Theory –
individual’s perception of
fair and equitable
• Goal: target, objective,
or result that someone
tries to accomplish.
• Goal-setting theory -
people will be motivated
to the extent to which
they accept specific,
challenging goals and
receive feedback that
indicates their progress
Systematic and organized approach that allows
managers to focus on attainable goals and
achieve the best results.
MBO helps motivate individuals by aligning their
objectives with the goals of the organization.
› A series of related organizations, goals, and objectives
› Specific objectives for each individual
› Participative decision making
› Set time period to accomplish goals
› Performance evaluation and feedback
• Two assumptions manager make about employees,
according to psychologist Douglas McGregor:
• Theory X: employees dislike work and try to avoid it
whenever possible; managers must coerce or control them
or threaten punishment to achieve the organization’s goals.
• Theory Y: typical person likes work and learns to accept
and seek responsibilities; managers assume creative people
solve work-related problems.
• A third theory from management professor William Ouchi:
• Theory Z: worker involvement is key to increased productivity
for the company and improved quality of work life for