2. Company Strategy
Attract an Effective Workforce
HRM Planning
Job Analysis
Recruiting
Selecting
Maintain an Effective Workforce
Wage and Salary
Benefits
Labor Relations
Termination
Develop an Effective Workforce
Training
Development
Appraisal
Strategic Human Resource Management
Source: Adopted from Daft, Richard. L (2003)
3. Maintaining an Effective Workforce
HR professionals are required to maintain a workforce that
has been recruited and developed.
Maintenance of the current workforce involved
compensation
benefits or reward
wages and salaries, and
occasional terminations.
4. Compensation
All monetary payments and
All goods and commodities used instead of money to
reward employees
Important part of HRM
Facilitate to attract and retain talented workers
Impact on strategic performance
HR managers design the compensation structure to fit
company’s strategies
5. Compensation and Benefits (reward)
Financial Nonfinancial
Direct Indirect Job Job
Environment
Wages Uniform Skill Varity Sound
Policy
Salaries Health Care Task Identity Competent
Employees
Commission Task Significance Working Condition
Autonomy Flextime
Feedback Job Sharing
6. Intrinsic vs. Extrinsic Rewards
6
Intrinsic = InsideIntrinsic = Inside
Feeling of JobFeeling of Job
WellWell DoneDone
PridePride
Sense ofSense of
AchievementAchievement
Extrinsic = OutsideExtrinsic = Outside
PraisePraise
SalarySalary
IncreaseIncrease
StatusStatus
RecognitionRecognition
PromotionsPromotions
GiftsGifts
7. Wages and Salaries
The most common approach to employees compensation is
job-based pay
Problems
fail to reward needed to maintain
emphasis on organizational hierarchy and centralised
decision making and control
Skilled based system- if employees with higher skill levels,
they received higher pay
Also called competency based
8. Compensation equity
Good managers strive to maintain a sense of fairness and
equity within the pay structure
Job evaluation- the process of determining the value of job
through an examination of job content
Can compare jobs and internally equitable pay rate
determined
Employees are experienced that the pay rate are fair
relative to other job
9. Equity TheoryEquity TheoryEquity TheoryEquity Theory
Ratio
Comparison*
Employee’s
Perception
Outcomes A
Inputs A
Outcomes A
Inputs A
Outcomes A
Inputs A
Outcomes B
Inputs B
Outcomes B
Inputs B
Outcomes B
Inputs B
<
=
>
Inequity (Under-Rewarded)
Equity
Inequity (Over-Rewarded)
*
Where A is the employee, and B is a relevant other or referent.
9
13. The Job as a Total Compensation Factor
Unwillingness to change jobs for additional financial
compensation suggests that the job itself is indeed an
important reward
A job may be so boring or unpleasant that an individual
dreads going to work
This condition is sad considering the time a person devotes
to his or her job
When work is bored, life may not be very pleasant
14. Designing Motivating Jobs
Job Design
The way into which tasks can be combined to form
complete jobs.
Factors influencing job design:
Changing organizational environment/structure
The organization’s technology
Employees’ skill, abilities, and preferences
Job enlargement
Increasing the scope (number of tasks) in a job.
Job enrichment
Increasing responsibility and autonomy (depth) in a job. 14
15. Job Design for Motivation
Job Design - application of motivational theories
to the structure of work
15
16. Job Design for Motivation
Job Simplification - improve task efficiency by
reducing the number of tasks
Job Rotation - moving employees from one job to
another to provide them with variety and stimulation
Job Enlargement - combining a series of tasks into
one new, broader job to give employees variety and
challenge
16
17. Job Design for Motivation
Job Enrichment - incorporating achievement,
recognition, and other high-level motivators into
the work
Work redesign – altering jobs to increase both the
quality of employee’s work experience and their
productivity
17
18. Cyber work
A possibility of a never ending workday created through the used
of technology
Cell phone and internet have stretched work at both ends
Individuals could turn off their smart phones, notebooks or
pocket devices to prevent such inconvenient intrusions
Many career minded people will not make this decision
As they are competing with others for promotions and bonuses,
these individuals will choose to be available when needed
20. Workplace Flexibility
Balance work and personal lives time is important
Employees are requesting flexible benefit including
telecommuting from home, flextime, and a compressed
workweek
When labour market are tight, the competition for highly
skilled workers becomes intense
For survival, must find and sustain balance between quality of
life for employees and organization goals
Workplace flexibility is a key strategic factor for employers to
attract and retain talented people
Flexible workplace can result- increased productivity,
improved recruitment, retention of employees and enhanced
company’s image
21. Desired Outcomes of HRMDesired Outcomes of HRM
Attraction
Retention
Job Performance
Productivity
Employee Safety and Health
Attendance
Job Satisfaction
Competitive Advantage
Company Performance
22. The Changing Social Contract
New Contract Old Contract
Employee
Employability, personal
responsibility
Partner in business improvement
Learning
Job security
A cog in the machine
Knowing
Employer
Continuous learning, incentive
compensation
Creative development
opportunity
Challenging assignments
Information and resources
Traditional compensation
package
Standard training programs
Routine jobs
Limited information
23. New Motivational Compensation Programs
Pay for Performance (Merit Pay)
Skill-Based Pay
Gain Sharing
Employee Stock Ownership Plan (ESOP)
Lump-Sum Bonuses
Pay for Knowledge
Flexible Work Schedule
Team-based Compensation
25. McGregor’s Theory X and Theory Y
Theory X
People dislike work and
will seek to avoid it
Workers are un-ambitious,
irresponsible, lazy, and
not to be trusted
Workers have to be
controlled
Such people have security
as their greatest need
Theory Y
People enjoy work
People seek responsibility
They do not wish to be
controlled
Workers desire to satisfy
social and self-actualizing
needs
26. The TheoryThe Theory
of Needsof Needs
DavidDavid
McClellandMcClelland
The TheoryThe Theory
of Needsof Needs
DavidDavid
McClellandMcClelland
Need forNeed for
AchievementAchievement
(nAch)(nAch)
Need forNeed for
AchievementAchievement
(nAch)(nAch)
Need forNeed for
PowerPower
(nPow)(nPow)
Need forNeed for
PowerPower
(nPow)(nPow)
Need forNeed for
AffiliationAffiliation
(nAff)(nAff)
Need forNeed for
AffiliationAffiliation
(nAff)(nAff)
Motivation theory: David McClelland
26
27. The Major Factors Affecting Motivating
Pay rate
Security of livelihood
Prospects of promotion, advancement, and
improvement in living standards
Social grouping
Styles and quality of leadership
The nature of the work
Sense of challenge in relations to the worker’s ability
Desire for autonomy and responsibility
Opportunity to participate in decision making
Working conditions
29. Use Pay to Motivate
Pay forPay for
PerformancePerformance
Pay forPay for
PerformancePerformance
Pay forPay for
CompetencyCompetency
Pay forPay for
CompetencyCompetency
Pay forPay for
TimeTime
Pay forPay for
TimeTime
Other issues: payment
29
30. From Theory to Practice:
Guidelines for Motivating Employees
Recognize individual
differences
Match people to jobs
Use goals
Ensure that goals are
perceived as attainable
Individualize rewards
Link rewards to
performance
Check the system for
equity
Use recognition
Don’t ignore money
30
31. Motivating in the New Workplace
• Empowerment
• Giving Meaning to Work
31
33. Four Empowering Elements
1. Employees receive information about company
performance
2. Employees have knowledge and skills to contribute to
company goals
3. Employees have the power to make substantive decisions
4. Employees are rewarded based on the company
performance
33
34. Giving Meaning to Work
The way to create engaged, motivated
employees and high performance has less
to do with extrinsic rewards such as pay
and much more to do with fostering an
environment in which people can flourish.
34
35. • The manager’s role is not to control others
but to organize the workplace in such a
way that each person can learn,
contribute, and grow.
35
36. How To Motivate People ?
Know your people
Use right kind of rewards
Develop positive expectation
Minimize frustration
36
37. PARTNER
Working with the top Management Team as a partner in:
Participating in defining Business Strategy.
Actively live up to Vision and mission statement
Influencing change in Strategy in view of the organizations
Talent Base, or ability to build one in the short Term.
Develop capacity building
Implementing the HR component of the Business Strategy.
38. Partnership Through Team BuildingPartnership Through Team Building
Share information openlyShare information openly
Participate in the team’s taskParticipate in the team’s task
Encourage each otherEncourage each other
Share responsibilityShare responsibility
Develop a climate of trust and respect.Develop a climate of trust and respect.
Encourage open dialogueEncourage open dialogue
Delegate to team members as much as possible.Delegate to team members as much as possible.
40. The employee’s contributions to the
motivation partnership
Be self-motivated.
Search for the “right” job and work
environment.
Be willing to learn.
Commit to the organization’s vision, mission,
core values and goals.
Communicate needs, concerns and ideas to the
employer.
Listen to the employer’s point of view.
40
41. The employer’s contributions to the partnership
Remove employee dissatisfiers such as
poor working conditions,
unsafe equipment,
exhausting physical work combined with
excessively long work days and weeks,
unfair pay,
disagreeable supervisors,
unreasonable rules and policies,
unchallenging work,
obnoxious co-workers and
conflict with co-workers.
41
42. Which practices are you adopted?
1. Closely supervise my subordinates in order to get better work from
them.
2. Set the goals and objectives for my subordinates and sell them on their
merits of my plans.
3. Set up controls to ensure that my subordinates are getting the job done.
4. Make sure that my subordinates’ work is planned out for them.
5. Check with my subordinates daily to see if they need any help.
6. Step in as soon as reports indicate that the job is slipping.
7. Push my people to meet schedules if necessary.
8. Have frequent meetings to learn from other what is going on.
43. WE CAN’T SPELL S CCESS WITHOUT
U
Thanks For Your Attention!
Editor's Notes
Also available on a Transparency Acetate
See Learning Goal 1: Explain Taylor’s scientific management.
See text page: 260
Intrinsic vs. Extrinsic Rewards
This slide illustrates visually to students that intrinsic rewards come from within an individual, whereas extrinsic rewards come from outside a person.
Intrinsic means from within, when you have a drive to succeed whereby workers are motivated by purpose, passion, and mission.
Extrinsic rewards are often temporary and driven by money, recognition and results.
Explain to the students that intrinsic rewards are long-lasting and managers should promote the following environment to foster those feelings:
Work is more fun.
Employees know the work they do is meaningful and worthwhile.
Problems are viewed as challenges, not as restraints.
It’s OK for employees to try new ways of doing tasks and to do new tasks that interest them.
Employees know when they’ve done a good job.
Empowerment increases motivation by giving the authority to set goals, make decisions, and solve problems.
(Source: Issacous)
Equity theory seeks to find how the outcome of job influence motivation, and proposes that inequity creates tension, which then would cause an employee to seek fairness.
Workers compare their job inputs and outcomes with others. There are four referents that an employee can use:
(1) Self-inside: an employee’s experiences in a different position inside the organization.
(2) Self-outside: an employee’s experiences in a position outside of the organization.
(3) Other-inside: an employee’s perception of persons inside the organization.
(4) Other-outside: an employee’s perception of persons outside of the organization.
There are three possible perceptions: inequity due to being under-rewarded, equity, or inequity due to being over-rewarded.
Workers who perceive an inequity will react in one of the six following ways:
change inputs, change outcomes,
distort perceptions of self, distort perceptions of others
choose a different referent, or leave the field.
Two key properties of the theory: relative and conceived
David McClelland asserts that there are three relevant motives or needs that motivate behavior in the workplace, which he believed are acquired from the culture of a society.:
The need for achievement (nAch) is the need to excel, to achieve in relation to a set of standards, to succeed.
The need for power (nPow) is the need to shape and control the behavior of others.
The need for affiliation (nAff) is the desire for interpersonal relationships.
The consistent findings in the areas
High achievement need people prefers job satisfaction with personal responsibilities,feedback and intermediate degree of risk.
High achievement need people are NOT necessarily good managers, especially in large organizarions.
High need for power
People can be trained to stimulate their achivement need
Some people have a compelling drive to succeed, but they strive for personal achievement, not for the rewards of success, per se (nAch). These high achievers seek situations in which they can take responsibility for solving problems, can receive rapid unambiguous feedback on performance, and can set moderately challenging goals.
Persons with a high need for power (nPow) desire to be influential, in charge, and seek competitive, status-oriented situations.
Those who have a high need for affiliation (nAff) want to be liked and accepted by others; so, they strive for friendships, cooperation, and high-trust situations.
When motivating a diverse workforce, flexibility is the key. Employees have different needs and goals that they hope to satisfy through work. So, the rewards system must be flexible to meet their diverse needs.
Managers must also be sensitive to cultural differences. Managers cannot assume that motivation concepts are universally applicable, so they must adjust motivation techniques according to the culture.
Most of the theories of motivation were developed by psychologists who were studying American workers. For instance, theories based on self-interest that are applicable in cultures that value capitalism and individualism may be of questionable value in collectivist cultures.
Before most people do anything, they look for a pay-off or reward. Therefore, managers must consider how pay can be used to motivate high levels of performance in the workplace.
Pay-for-performance programs are getting popular these days, such as profit sharing, lump sum bonuses, or wage incentive plans, piece rate plans, pay employees according to some performance measure. Such pay programs are compatible with expectancy theory because workers will perceive a strong relationship between their performance and their rewards.
Competency-based compensation program pays and rewards employees on the basis of their skills, knowledge, or behaviors.
This argument extends the simple and intuitive model of motivation based on needs. It gives responsibility to both employers and employees.
Employees unwilling to make these contributions are saying that they take less than ideal responsibility for their own motivation.
Dissatisfiers get in the way of a person becoming motivated. These dissatisfiers are under the control of the employer not the employee.
Employers leaving dissatisfiers in place fail to give motivators a chance to work. Motivation problems result no matter what the characteristics of employees may be.