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Maintaining Effective Workforce Partnership with Workforce
- 1. Maintaining Effective Workforce Partnershipwith Workforce Daw Thida Aye Lecturer Department of Management Studies Yangon University of Economics
- 2. Company Strategy Attract anEffective 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 EffectiveWorkforce 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 monetarypayments 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. ExtrinsicRewards 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 Goodmanagers 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 TheoryEquityTheoryEquity 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
- 10. Benefits Compensation packagesare more than money Some benefits are required by law Social Security, Unemployment Compensation, Workers’ Compensation Other types of benefits are optional Health Insurance, Vacations, Daycare, Fitness Centers Employees are beginning to absorb more health insurance costs Many organizations offer cafeteria-plan benefits to address the diverse needs of employees Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. 10
- 11. Termination Retirement VoluntaryDeparture Mergers & Cutbacks Poor Performance Termination dismisses poor performers Opportunity to learn about dissatisfaction through exit interview Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved. 11
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- 13. The Job asa 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 forMotivation Job Design - application of motivational theories to the structure of work 15
- 16. Job Design forMotivation 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 forMotivation 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 Apossibility 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
- 19. The Job Environmentas a Total Compensation Factor
- 20. Workplace Flexibility Balancework 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 ofHRMDesired Outcomes of HRM Attraction Retention Job Performance Productivity Employee Safety and Health Attendance Job Satisfaction Competitive Advantage Company Performance
- 22. The Changing SocialContract 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 CompensationPrograms 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
- 24. Maslow’s and Herzberg’sIdeas Compared
- 25. McGregor’s Theory Xand 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 ofNeedsof 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 FactorsAffecting 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
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- 29. Use Pay toMotivate 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 toPractice: 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 theNew Workplace • Empowerment • Giving Meaning to Work 31
- 32. Empowerment Delegation of poweror authority to subordinates. 32
- 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 toWork 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’srole 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 MotivatePeople ? Know your people Use right kind of rewards Develop positive expectation Minimize frustration 36
- 37. PARTNER Working with thetop 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 TeamBuildingPartnership 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.
- 39. Employee motivation worksbest as a partnership between employer and employee. 39
- 40. The employee’s contributionsto 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 contributionsto 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 areyou 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’TSPELL S CCESS WITHOUT U Thanks For Your Attention!
Editor's Notes
- #7 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)
- #10 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
- #27 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.
- #29 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.
- #30 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.
- #40 This argument extends the simple and intuitive model of motivation based on needs. It gives responsibility to both employers and employees.
- #41 Employees unwilling to make these contributions are saying that they take less than ideal responsibility for their own motivation.
- #42 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.