Chapter 10 & 11

Hiring, Training,Evaluating, and

Motivating Employees

The Key to a Firms Performance

Human Resources
Hiring

Selecting the best

people for the job.

Training

Developing the
necessary skills of
employees to do the
job.

Evaluation

Establishing a formal
process to recognize
(and ultimately
reward) those
employees who
performed well, while
offering suggested
improvements for
other employees.

Form a team of
employees with the
right background,
training and guidance.

Firm's
Value

Human Resource Planning

The act of planning to satisfy a firms needs for
employment.
Three tasks:
Forecasting staffing needs.
Job analysis.
Recruiting.

Human Resource Planning

Forecasting
Staffing Needs

Job Analysis

Recruitment

Selection

Forecasting Staffing Needs

Determine the right number of qualified

people and where they are needed.
Three events which require forecasting:
Firm expansion.
Retirement.
Temporary increase in production.

Job Analysis
The analysis used to determine the tasks and the
necessary credentials for a particular position.
The results of Job Analysis are:
Job Specification
Identifies the necessary skills, traits or attributes
for successful performance in a particular job.
Job Description
States tasks and responsibilities of the job
position.

Recruitment
Involves seeking and attracting individuals from
which a qualified candidate(s) can be selected.
Internal vs external recruiting:
Internal
Recruit people within the firm.
External
Recruit people outside the firm.

Steps for Screening Job Applicants

Exhibit 11.3

Seven Methods of Compensation

Salaries and wages
Stock options
Commissions
Bonuses
Profit sharing
Employee benefits
Perquisites

Which one is right for your firm?

Skills Development
Technical
Decision Making
Customer Service
Safety
Human Relations

Employee Evaluations Should

Be segmented by the relevant criteria for each job position.

Provide feedback.
Provide direction.
Indicate strengths and weaknesses.
Determine a raise or promotion.
Consider objective versus subjective criteria.

Direct Measures of Performance

Exhibit 11.8

Development of Evaluation Fairness

Why: demonstrate overall fairness to employees and satisfies
legal guidelines.

Communicate job
responsibilities.
Employee evaluation

Inform employee
of deficiencies.
Use consistency
among employees.

Motivation and
Maslows
Hierarchy of
Needs

1. MASLOWS
THEORY of MOTIVATION

Hierarchy of Needs -- Theory of motivation

based on unmet human needs from basic
physiological needs to safety, social and esteem
needs to self-actualization needs.
Needs that have already been met do not
motivate.
If a need is filled, another higher-level need
emerges.
10-14

Motivation and
Maslows
Hierarchy of
Needs

MASLOWS
HIERARCHY of NEEDS

10-15

Herzbergs
Motivating
Factors

2. Herzbergs Motivation Theory

Herzbergs research found

job content factors were most
important to workers
workers like to feel they
contribute to the company.
Motivators -- Job factors that
cause employees to be
productive and that give them
satisfaction.

10-16

Herzbergs
Motivating
Factors

JOB ENVIRONMENT

Job environment factors maintained satisfaction,

but did not motivate employees.
Hygiene Factors -- Job

factors that can cause

dissatisfaction if missing but
that do not necessarily
motivate employees if
increased.

10-17

Herzbergs
Motivating
Factors

HERZBERGS MOTIVATORS
and HYGIENE FACTORS
Motivators

Hygiene Factors

Work itself

Company policy and

administration

Achievement

Supervision

Recognition

Working conditions

Responsibility

Interpersonal relations

Growth and
advancement

Salary, status and job

security
10-18

Herzbergs
Motivating
Factors

COMPARISON of the THEORIES

of MASLOW and HERZBERG

10-19

McGregors
Theory X and
Theory Y

3. THEORY X and THEORY Y

Douglas McGregor proposed managers had two

different sets of assumptions concerning workers.
Their attitudes about motivating workers were tied
to these assumptions.
McGregor called them Theory X and Theory Y.

10-20

McGregors
Theory X and
Theory Y

ASSUMPTIONS of
THEORY X MANAGERS

Workers dislike work and seek to

avoid it.
Workers must be forced or
threatened with punishment to get
them to perform.
Workers prefer to be directed and
avoid responsibility.
Primary motivators are fear and
money.
10-21

McGregors
Theory X and
Theory Y

ASSUMPTIONS of
THEORY Y MANAGERS

People like work, its a part of life.

Workers seek goals to which they are committed.
Commitment to goals depends on perceived
rewards.
People can use creativity to solve problems.
Intellectual capacity is only partially realized.
People are motivated by a variety of rewards.
10-22

Ouchis
Theory Z

4. THEORY Z
William Ouchi researched cultural differences
between the U.S. (Type A) and Japan (Type J).
Type J committed to the organization and group.
Type A focused on the
individual.
Theory Z is the hybrid
approach of Types A
and J.
10-23

Ouchis
Theory Z

THEORY Z

10-24

Meeting Employee
Expectations:
Expectancy
Theory

5. EXPECTANCY THEORY in
MOTIVATION

Expectancy Theory -- The amount of effort

employees exert on a specific task depends on their

expectations of the outcome.

Employees ask:
- Can I accomplish the task?
- Whats my reward?
- Is the reward worth the effort?

Expectations can vary from person to person.

10-25

Meeting Employee
Expectations:
Expectancy
Theory

EXPECTANCY THEORY

10-26

The Value of
Motivation

INTRINSIC REWARDS

Intrinsic Rewards -- Personal satisfaction you feel

when you perform well and complete goals.

Examples of Intrinsic Rewards:

- Pride in your
performance
- Sense of
achievement

10-

The Value of
Motivation

EXTRINSIC REWARDS

Extrinsic Rewards -- Something given as a

recognition of good work.

Kinds of Extrinsic Rewards:

- Pay Raises
- Promotions
- Awards

10-

The Value of
Motivation

FRINGE BENEFITS

Perks Offered to Employees at Top 50 Employers

Source: Bloomberg BusinessWeek, www.businessweek.com, accessed June 2011.

10-

Motivation
Through Job
Enrichment

KEY CHARACTERISTICS
of WORK

1. Skill Variety
2. Task Identity
3. Task Significance
4. Autonomy
5. Feedback

10-30

Recognizing a
Job Well Done

WHATS GOOD for YOU

Most Positive Remedies for Employee Moral

10-31

Recognizing a
Job Well Done

WHATS BAD for YOU

Most Negative Actions for Employee Morale

10-32