Chapter -10_and_11_-_human_resource_management

1. Introduction to Business
HUMAN RESOURCE
MANAGEMENT
Chapter # 10 &11
Shafayet Ullah
SECTION: A3 and A4

2. HUMAN RESOURCE MANAGEMENT
Human Resource Management is the process of
acquiring, retaining, terminating, developing and properly
using the human resources in an organization.
Motivation
Motivation is the way drives or needs direct a person’s
behavior towards a specific goal. It concerns the level of
effort put forward to pursue the goals.
The tools of motivation is reward and punishment.
Reward can be Extrinsic or Intrinsic

3. REWARDS
Extrinsic Rewards
Extrinsic rewards are external to the work itself; they are
administered by someone else; such as a manager.
Example: payment, fringe benefits, recognitions and praise.
Intrinsic Rewards
Intrinsic rewards are related directly to performing the job.
These are often described as self-administered.
Example: felling good about accomplishing an objective and
about being able to make job-related decisions without
consulting a supervisor.

4. PUNISHMENT
Punishment involves taking something away
from a person or administering an undesirable
consequence for a particular behavior.
Example: a frequently late worker would be
punished by having his pay tie up for the time
missed.

5. Maslow’s Needs Hierarchy
A popular theory of human needs that helps us to
understand motivation, is psychologist Abraham
Maslow’s needs hierarchy.
A Motivational theory, offered by Maslow, that people
have five needs arranged in a hierarchy from
physiological to self-realization. The needs Maslow
identified fall into a hierarchy or arrangement of power
to motivate behavior.
Each higher order need becomes active and
motivates a person only when lower order needs have
been fulfilled. Each person is assumed to have needs
in each category.

6. Maslow’s Needs Hierarchy

7. Needs Hierarchy
Physiological Need
Biological need such as for food, air, water
Safety Need
Security needs such as the need to be financially secure
and protected against job loss.
Social Need
The need to belong and to interact with other people
Esteem Need
The need for self-respect and for respect from others.
Self-Actualization Needs
The need to use and display one’s full range of skills and
competence.

8. McGregor’s Theory X and Theory Y
Douglas McGregor, a professor of
management
introduced a theory of
managerial style, referred to as Theory X
and Theory Y.
Theory X
Theory Y

9. McGregor’s Theory X and Theory Y
Theory X is a managerial assumption
employees dislike work, responsibility
accountability and must be closely directed
controlled to be motivated to perform.
Theory X managers are assumed to view
average employee as:




that
and
and
the
Disliking work and finding ways to avoid it as much
as possible.
Responding to threats of punishment or control
because of the dislike of work.
Avoiding responsibility because of lack of ambition.
Wanting to be directed and have security.

10. McGregor’s Theory X and Theory Y
Theory Y is a managerial assumption that
employees want to be challenged, like to display
creativity and can be highly motivated to perform
well if given some freedom to direct to manage
their own behavior.
The Theory Y manager assumes that the average
employee:






Enjoys work and does not want to avoid it
Wants to achieve organizational goals through selfdirected behavior
Responds to rewards associated with accomplishing
goals.
Will accept responsibility
Has initiative and can be creative in solving
organizational problems
Is intellectually underutilized

11. Prime Activities of HRM

12. Human Resource Planning
Human Resource Planning is the process of
analyzing an organization’s present and
future employment situation and developing
a strategy to meet an organization’s human
resource needs.

13. Human Resource Planning
Job Analysis
This is the process of determining the tasks that
make up a job and the skills, abilities and
responsibilities needed to perform the job.
Job Description
Job description is a statement that furnishes
information about a job’s duties, technology,
conditions and hazards; based on data from job
analysis.
A written statement of what the jobholder does,
how it is done and why it is done is also known as
Job description.

14. Human Resource Planning
Job Specification
Job specification is a statement of the human
qualifications needed to perform a job; derived
from the job analysis
Job Evaluation
It is a process by which the relative values of
jobs within the organization are determined

15. Human Resource Planning
Job Analysis: Sector of job
Job Description: Rules and regulation
Job Specification: Qualification, education
experience

16. Recruitment
Steps taken to staff an organization with the
best qualified people.
Sources of Recruitment
Internal Sources: The organization’s current
employees
External Sources: Those sources outside of
the firm

17. Recruitment
External Sources:
Internal Sources:
 Advertisements
 Present Employees
 Newspapers
 Friends of
 Journals
Employees
 Magazines
 Blind Advertisements
 Former Employees
(Company name is not
 Previous Applicants
identified)
 College/University
 Relatives
Recruitment


Management Trainee
Executives

18. Selection
The selection process is a series of
steps that starts with the initial
screening and ends with a decision to
hire the person.

19. The Selection Process
Fundamentals of Human Resource
Management 8e, DeCenzo and Robbins

20. Selection
1. Initial Screening: check the minimum
qualifications
2. Complete Applications: required complete
application and check with the job specifications
3. Employment Interview



Employment test
Background and reference checks
Physical examination
4. Decision to Hire
 Conditional job offer
 Permanent job offer

21. Training and Development
Training
Training is a continual process of helping
employees perform at a higher level. It may
occur in the workplace or at a special training
facility, but should always be supervised by
training experts. Training is generally associated
with operating or non-managerial employees.

22. Training and Development
Management Development
Management development refers to the process of
educating and developing selected personal so that
they have the knowledge, skills, attitudes and
understanding needed to manage in future position.
Management development is associated with
managerial personal.

23. Compensation and Benefits
Compensation is pay or salary, typically monetary
payment for services provided as in an
employment.
Direct Compensation: An employee’s base pay
and performance-based pay
Indirect Compensation: Extra benefits, paid leave

24. Compensation and Benefits
Wages: Financial rewards based on the number
of hours the employee works or the level of
output achieved/ number of units produced.
Commission: The payment to the employee of a
fixed amount or a percentage of the
employee’s sales

25. Compensation and Benefits
Salary: a financial reward calculated on a weekly,
monthly or annual basis.
Bonuses: An addition to regular compensation for
exceptional performance.
Profit Sharing: Distributing a percentage of
company profits to the employees whose work
helped to generate those profits.

26. Compensation and Benefits
Benefits:
Non-wage
and
non-salary
forms
of
compensation. Such as participate in decision
making, more responsibilities, preferred office
furnishings, preferred lunch hours, assigned
parking spaces, business cards, own secretary,
impressive titles etc.

27. THE END