Human Resource

Management
Week 10
HRM
The Value of Motivation
• Many businesses are successful not just because of their business
ideas, but also because of their employees.
• But employees need to be motivated as well as to have the proper
skills to do their jobs.
• Employees at some firms have adequate skills for their jobs, but they
lack the motivation to perform well.
• Consequently, these employees offer only limited help in the
production process
Google Office
Theories on Motivation
• The motivation of employees is influenced by job satisfaction, or the
degree to which employees are satisfied with their jobs. Firms
recognize the need to satisfy their employees, as illustrated by the
following statements from recent annual reports:
“You will see a greater focus on employee satisfaction . . . which
will lead us to higher quality, better growth, and improve
profitability.”
—Kodak
Hawthorne Studies
• In the late 1920s, researchers studied workers in a Western Electric Plant
near Chicago to identify how a variety of conditions affected their level of
production.
• When the lighting was increased, the production level increased.
• Yet the production level also increased when the lighting was reduced.
• These workers were then subjected to various break periods; again, the
production level increased for both shorter breaks and longer breaks.
• One interpretation of these results is that workers become more motivated
when they feel that they are allowed to participate.
• Supervisors may be able to motivate workers by giving them more
attention and by allowing them to participate.
Hawthorn
Studies
Maslow’s Hierarchy of Needs
• In 1943, Abraham Maslow, a psychologist, developed the hierarchy of
needs theory.
• This theory suggests that people rank their needs into five general
categories.
• Once they achieve a given category of needs, they become motivated
to reach the next category.
• Physiological needs are the basic requirements for survival, such as
food and shelter. Most jobs can help achieve these needs.
• Once these needs are fulfilled, safety needs (such as job security and
safe working conditions) become the most immediate goal.
Herzberg’s Job Satisfaction Study
• In the late 1950s, Frederick Herzberg surveyed 200 accountants and
engineers about job satisfaction.
• Herzberg attempted to identify the factors that made them feel
dissatisfied with their jobs at a given point in time.
• He also attempted to identify the factors that made them feel
satisfied with their jobs.
• Employees become dissatisfied when they perceive work-related
factors in the left column (called hygiene factors) as inadequate.
• Employees are commonly satisfied when the work-related factors in
the right column (called motivational factors) are offered.
McGregor’s Theory X and Theory Y
• Another major contribution to motivation was provided by Douglas
Mc-Gregor, who developed Theory X and Theory Y.
• Each of these theories represents supervisors’ possible perception of
workers. The views of Theories
• X and Y are summarized as follows:
Theory Z
• In the 1980s, a new theory on job satisfaction was developed.
• This theory, called Theory Z, was partially based on the Japanese style
of allowing all employees to participate in decision making.
• Participation can increase job satisfaction because it gives employees
responsibility.
• Job descriptions tend to be less specialized, so employees develop
varied skills and have a more flexible career path.
• To increase job satisfaction, many U.S. firms have begun to allow
employees more responsibility.
Expectancy theory
• Expectancy theory suggests that an employee’s efforts are influenced by
the expected outcome (reward) for those efforts.
• Therefore, employees will be more motivated to achieve goals if they are
achievable and offer some reward.
• As an example, consider a firm that offers the salesperson who achieves
the highest volume of annual sales a one-week vacation in Paris.
• This type of reward will motivate employees only if two requirements are
fulfilled.
• First, the reward must be desirable to employees.
• Second, employees must believe they have a chance to earn the reward.
Equity Theory
• The equity theory of motivation suggests that compensation should
be equitable, or in proportion to each employee’s contribution.
• As an example, consider a firm with three employees: Employee 1
contributes 50 percent of the total output, Employee 2 contributes 30
percent, and Employee 3 contributes 20 percent.
• Assume that the firm plans to allocate $100,000 in bonuses based on
the relative contributions of each employee. Using the equity theory,
the $100,000 would be allocated as shown in next Exhibit
Equity
Theory
Reinforcement Theory
• Reinforcement theory suggests that reinforcement can influence behavior.
• Positive reinforcement motivates employees by providing rewards for high
performance.
• The rewards can range from an oral compliment to a promotion or large
bonus. Employees may react differently to various forms of positive
reinforcement. The more they appreciate the form of reinforcement, the
more they will be motivated to continue high performance.
• Negative reinforcement motivates employees by encouraging them to
behave in a manner that avoids unfavorable consequences. For example,
employees may be motivated to complete their assignments today to avoid
having to admit the delay in a group meeting or to avoid negative
evaluations by their supervisors.
Motivational
Guidelines
Offered by
Theories
How Firms Can Enhance Job
Satisfaction and Motivation
• Adequate compensation program
• Job security
• Flexible work schedule
• Employee involvement programs
Hiring, Training and Evaluating
Employees
Human Resource Planning
• Forecasting staffing needs
• Job analysis
• Recruiting
Forecasting Staffing Needs
• If staffing needs can be anticipated in advance, the firm has more
time to satisfy those needs.
• Some needs for human resources occur as workers retire or take jobs
with other firms.
• Retirement can be forecasted with some degree of accuracy, but
forecasting when an employee will take a job with another firm is
difficult.
Job Analysis
• Job analysis: the analysis used to determine the tasks and the
necessary credentials for a particular position
• Job specification: states the credentials necessary to qualify for a job
position
• Job description: states the tasks and responsibilities of a job position
 Job
Description
Recruiting
• Human resource manager helps each specific department recruit
candidates for its open positions
• Internal versus External Recruiting
• internal recruiting: an effort to fill open positions with persons already
employed by the firm. Promotion the assignment of an employee to a higher-
level job with more responsibility and compensation
• external recruiting: an effort to fill positions with applicants from outside the
firm