Chapter 10 & 11

Hiring, Training,Evaluating, and Motivating Employees

The Key to a Firm’s PerformanceHuman Resources

Selecting the best people for the job.

Training

Firm's Value

Establishing a formal process to recognize

(and ultimately reward) those

employees who performed well, while

offering suggested improvements for other employees.

Developing the necessary skills of

employees to do the job.

Form a team of employees with the right background,

training and guidance.

Evaluation

Hiring

Human Resource Planning

The act of planning to satisfy a firm’s needs for employment.

Three tasks: Forecasting staffing needs. Job analysis. Recruiting.

Human Resource Planning

Forecasting Staffing Needs Job Analysis

Recruitment

Selection

Forecasting Staffing Needs

Three events which require forecasting: Firm expansion. Retirement. Temporary increase in production.

Determine the right number of qualified people and where they are needed.

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 DescriptionStates 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

Profit sharing

Employee benefits Perquisites

Bonuses

Salaries and wages

Commissions

Which one is right for your firm?

Stock options

Skills Development

• Technical

• Decision Making

• Customer Service

• Safety

• Human Relations

Employee Evaluations Should

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

Be segmented by the relevant criteria for each job position.

Direct Measures of Performance

Exhibit 11.8

Development of Evaluation Fairness

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

Communicate job responsibilities.

Inform employee of deficiencies.

Use consistency among employees.

Employee evaluation

1. MASLOW’S 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.

Motivation and Maslow’s Hierarchy of Needs

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MASLOW’S HIERARCHY of NEEDS

Motivation and Maslow’s Hierarchy of Needs

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2. Herzberg’s Motivation Theory

• Herzberg’s 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.

Herzberg’s Motivating Factors

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JOB ENVIRONMENT

• Job environment factors maintained satisfaction, but did not motivate employees.

Herzberg’s Motivating Factors

• Hygiene Factors -- Job factors that can cause dissatisfaction if missing but that do not necessarily motivate employees if increased.

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HERZBERG’S MOTIVATORS and HYGIENE FACTORS

Motivators Hygiene Factors

Work itself Company policy and administration

Achievement SupervisionRecognition Working conditions

Responsibility Interpersonal relationsGrowth and

advancementSalary, status and job

security

Herzberg’s Motivating Factors

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COMPARISON of the THEORIES of MASLOW and HERZBERG

Herzberg’s Motivating Factors

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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.

McGregor’s Theory X and Theory Y

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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.

McGregor’s Theory X and Theory Y

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ASSUMPTIONS of THEORY Y MANAGERS

• People like work, it’s 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.

McGregor’s Theory X and Theory Y

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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.

Ouchi’s Theory Z

• Type A focused on the individual.

• Theory Z is the hybrid approach of Types A and J.

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THEORY ZOuchi’s Theory Z

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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?

- What’s my reward?

- Is the reward worth the effort?

• Expectations can vary from person to person.

Meeting Employee Expectations: Expectancy Theory

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EXPECTANCY THEORYMeeting Employee Expectations: Expectancy Theory

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INTRINSIC REWARDS

• Intrinsic Rewards -- Personal satisfaction you feel when you perform well and complete goals.

• Examples of Intrinsic Rewards:

The Value of Motivation

- Pride in your performance

- Sense of achievement

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EXTRINSIC REWARDS

• Extrinsic Rewards -- Something given as a recognition of good work.

• Kinds of Extrinsic Rewards:- Pay Raises- Promotions- Awards

The Value of Motivation

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FRINGE BENEFITS Perks Offered to Employees at Top 50 Employers

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

The Value of Motivation

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KEY CHARACTERISTICS of WORK

1. Skill Variety

2. Task Identity

3. Task Significance

4. Autonomy

5. Feedback

Motivation Through Job Enrichment

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WHAT’S GOOD for YOUMost Positive Remedies for Employee Moral

Recognizing a Job Well Done

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WHAT’S BAD for YOUMost Negative Actions for Employee Morale

Recognizing a Job Well Done

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