Hrm10e Chap03
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Hrm10e Chap03 Presentation Transcript

  • 1. Human Resource Management TENTH EDITON Individual Performance and Retention © 2003 Southwestern College Publishing. All rights reserved. PowerPoint Presentation by Charlie Cook SECTION 1 Nature of Human Resource Management Chapter 3 Robert L. Mathis  John H. Jackson
  • 2. Learning Objectives
    • After you have read this chapter, you should be able to:
      • Discuss how motivation is linked to individual performance.
      • Identify the changing nature of the psychological contract.
      • Describe several types of absenteeism and turnover.
      • List the five major retention determinants and identify activities related to them.
      • Outline the retention management process and how to measure and assess turnover.
  • 3. Individual Employee Performance
    • Individual Performance Factors
      • Individual ability to do the work
      • Effort level expended
      • Organizational support
      • Performance (P) = Ability (A) x Effort (E) x Support (S)
  • 4. Components of Individual Performance Figure 3 –1
  • 5. Individual Motivation
    • Motivation
      • The desire within a person causing that person to act to reach a goal.
    • Maslow’s Hierarchy of Needs
      • Categories of needs that ascend in order; lower needs must be fulfilled before person will strive to meet higher needs.
        • Physiological needs
        • Safety and security needs
        • Belonging and love needs
        • Esteem needs
        • Self-actualization needs
  • 6. Individual Motivation (cont’d)
    • Herzberg’s Motivation/Hygiene Theory
      • Motivators —account for job satisfaction and motivation
        • Achievement • Recognition • Work itself
        • Responsibility • Advancement
      • Hygiene factors—cause dissatisfaction with work
        • Interpersonal relationships
        • Company policy/administration
        • Supervision • Salary • Working conditions
  • 7. Equity as a Motivator
    • Equity
      • The perceived fairness of what the person does compared to what the person receives.
      • The perception of the fair value of rewards (outcomes) for efforts (inputs) that individuals make when comparing their results to others in the organization.
  • 8. Expectancy Theory
    • Expectancy
      • Individuals base decisions about their behaviors on their expectations that one or another behaviors is more likely to lead to needed or desired outcomes.
      • Effort-to-Performance Expectations
        • Belief in the ability to perform the task well
      • Performance-to-Reward Linkage
        • Belief that high performance will result in receiving rewards
      • Value of Rewards
        • The rewards have value to the individual
  • 9. Simplified Expectancy Model of Motivation Figure 3 –2
  • 10. Management Implications for Motivating Performance
    • The need for comprehensive strategies and tactics to address both equity and expectations of employees.
    • The provision of training to encourage high performance.
    • The development of evaluation methods that properly appraise and reward performance.
    • An understanding of what kinds of rewards are desired and valued by employees.
  • 11. Individual/Organizational Relationships
    • The Psychological Contract
      • The unwritten expectations employees and employers have about the nature of their work relationships. Affected by age of employee and changes in economic conditions.
      • Employers provide:
        • Competitive compensation and benefits
        • Career development opportunities
        • Flexibility to balance work and home life
      • Employees contribute:
        • Continuous skill improvement
        • Reasonable time with the organization
        • Extra effort when needed
  • 12. Job Satisfaction and Organizational Commitment
    • Job Satisfaction
      • A positive emotional state resulting from evaluating one’s job experience.
    • Organization Commitment
      • The degree to which employees believe in and accept organizational goals and desire to remain with the organization.
  • 13. Factors Affecting Job Performance and Organizational Commitment Figure 3 –3
  • 14. Job Satisfaction and Organizational Commitment
    • Absenteeism
      • Involuntary absenteeism
        • Unavoidable with understandable cause (e.g., actual illness)
      • Voluntary absenteeism
        • Avoidable without justifiable cause (e.g., feigning illness)
      • Measuring absenteeism
  • 15. Reasons for Unscheduled Absences Figure 3 –4 Source: Based on data from CCH Absenteeism Survey, CCH Human Resources Management , November 1, 2000.
  • 16. Job Satisfaction and Organizational Commitment
  • 17. Job Satisfaction and Organizational Commitment
    • Turnover
      • The process in which employees leave the organization and have to be replaced.
    • Types of Turnover
      • Involuntary turnover —terminations for poor performance or work rule violations.
      • Voluntary turnover—employee leaves the organization by choice.
  • 18. Job Satisfaction and Organizational Commitment
  • 19. Retention of Human Resources
    • Impact of Retention Failure
      • Inability to achieve business goals
      • Loss of “image” to attract other individuals
      • High costs of turnover and replacement
  • 20. Retention of Human Resources
    • Why People Stay
      • Great company
        • Value and culture, well-managed, and offers exciting challenges
      • Great job
        • Freedom and autonomy, exciting challenges, and career advancement and growth
      • Compensation and lifestyle
        • Differentiated pay package, high total compensation, geographic location, and respect for lifestyle
  • 21. Most Common Reasons Why Employees Voluntarily Leave Figure 3 –5 Source: Based on 2000 SHRM Retention Practices Survey (Alexandria, VA: Society for Human Resource Management, 2000). Permission requested.
  • 22. Retention Determinants Figure 3 –6
  • 23. Desired Organizational Characteristics Figure 3 –7 Source: The Right Communiqué , First Quarter 2001, 7. Used with permission
  • 24. Work Schedule Flexibility Figure 3 –8 Source: Based on 2000 SHRM Retention Practices Survey (Alexandria, VA: Society for Human Resource Management, 2000). Permission requested.
  • 25. The Retention Management Process Figure 3 –9
  • 26. The Retention Management Process
    • Measuring Turnover
      • Ways in which to measure turnover
        • Job and job levels • Department, units, and location
        • Reason for leaving • Length of service
        • Demographic characteristics
        • Education and training
        • Knowledge, skills and abilities
        • Performance ratings/levels
    • Computing the turnover rate:
  • 27. Simplified Turnover Costing Model Figure 3 –10
  • 28. The Retention Management Process
    • Costs of Turnover
      • Hiring costs – Training costs
      • Productivity costs – Separation costs
    • Employee Surveys
      • Attitude survey —focuses on employees’ feelings and beliefs about their jobs and the organization.
    • Exit Interviews
      • An interview in which individuals are asked to identify reasons for leaving the organization.
  • 29. The Retention Management Process
    • Retention Interventions
      • Provide realistic job previews during the recruiting process
      • Improve the selection process so that there is a better person-job fit for new hires
      • Conduct effective job orientation and initial training
      • Offer competitive, fair, and equitable compensation
      • Provide an adequate benefits package
      • Offer career development and training
      • Engage in fair and nondiscriminatory employee relations