Individuals, Jobs and Effective HR Management

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    Individuals, Jobs and Effective HRIndividuals, Jobs and Effective HR

    ManagementManagement

    Session 3Session 3

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    Learning Objectives:

    - Identify three areas where HR departments should setperformance goals.

    - Describe the job characteristics model.

    - Discuss advantages and disadvantages of work teams.

    - Compare and contrast ways of dealing with turnoverand absenteeism.

    - Enumerate ways to collect data for evaluating HRperformance.

    - Summarize the process of evaluating HR performance.

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    Individual Performance Factors

    - Individual ability to do the work- Effort level expended

    - Organizational support

    Performance (P) =Ability (A) x Effort (E) x Support (S)

    Individual Employee Performance

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    Components of Individual Performance

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    Individual Motivation

    MotivationMotivation

    The desire within a person causing that person to act to

    reach a goal.

    Maslows Hierarchy of NeedsMaslows Hierarchy of Needs

    Categories of needs that ascend in order; lower needs must

    be fulfilled before person will strive to meet higher needs.

    - Physiological needs

    - Safety and security needs

    - Belonging and love needs

    - Esteem needs

    - Self-actualization needs

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    Individual Motivation (contd)

    Herzbergs Motivation/Hygiene Theory

    Motivatorsaccount for job satisfaction andmotivation

    Achievement Recognition Work itself

    Responsibility Advancement

    Hygiene factorscause dissatisfaction with work

    Interpersonal relationships Company policy/administration

    Supervision Salary Working conditions

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    Equity as a Motivator

    EquityEquity

    -- The perceived fairness of what the person doesThe perceived fairness of what the person does

    compared to what the person receives.compared to what the person receives.

    -- The perception of the fair value of rewardsThe perception of the fair value of rewards

    (outcomes) for efforts (inputs) that individuals(outcomes) for efforts (inputs) that individuals

    make when comparing their results to others inmake when comparing their results to others in

    the organization.the organization.

    Outcomes

    Inputs

    Outcomes

    Inputs

    Other

    Other

    Individual

    Individual !

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    Expectancy Theory

    Expectancy- Individuals base decisions about their behaviors on

    their expectations that one or another behaviors is

    more likely to lead to needed or desired outcomes.

    - Effort-to-Performance Expectations

    Belief in the ability to perform the task well

    - Performance-to-Reward Linkage

    Belief that high performance will result inreceiving rewards

    - Value of Rewards

    The rewards have value to the individual

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    Simplified Expectancy Model of Motivation

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    Management implications for Motivating

    Performance

    -- The need for comprehensive strategies and tactics to addressThe need for comprehensive strategies and tactics to address

    both equity and expectations of employees.both equity and expectations of employees.

    -- The provision of training to encourage high performance.The provision of training to encourage high performance.

    -- The development of evaluation methods that properly appraiseThe development of evaluation methods that properly appraise

    and reward performance.and reward performance.

    -- An understanding of what kinds of rewards are desired andAn understanding of what kinds of rewards are desired andvalued by employees.valued by employees.

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    Individual/Organizational

    RelationshipsThe Psychological Contract

    - The unwritten expectations employees and employers have

    about the nature of their work relationships. Affected by age of

    employee and changes in economic conditions.

    - Employers provide:

    Competitive compensation and benefits

    Career development opportunities

    Flexibility to balance work and home life

    - Employees contribute:

    Continuous skill improvement

    Reasonable time with the organization

    Extra effort when needed

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    Job Satisfaction and

    Organizational Commitment

    Job Satisfaction

    A positive emotional state resulting fromevaluating ones job experience.

    Organization Commitment

    The degree to which employees believe in and

    accept organizational goals and desire to remain

    with the organization.

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    Factors Affecting Job PerformanceFactors Affecting Job Performance

    and Organizational Commitmentand Organizational Commitment

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    Job Satisfaction and

    Organizational Commitment

    Absenteeism

    Involuntary absenteeism

    Unavoidable with understandable cause (e.g.,

    actual illness)

    Voluntary absenteeism

    Avoidable without justifiable cause (e.g., feigning

    illness)

    Measuring absenteeism

    100days)workof(Numberemployees)ofnumber(Average

    periodduringabsencejobghlost throudays-personofNumberv

    v

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    Reasons for Unscheduled AbsencesReasons for Unscheduled Absences

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    Measuring Absenteeism

    Calculations of the costs of absenteeism should

    usually include:

    Lost wages

    Benefits

    Overtime for replacements

    Fees for temporary employees, if incurred

    Supervisors time

    Substandard production

    Overstaffing necessary to cover absences

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    Job Satisfaction and

    Organizational Commitment

    Turnover The process in which employees leave the organization and have to be

    replaced.

    Types of Turnover

    Involuntary turnoverterminations for poor performance or work rule

    violations.

    Voluntary turnoveremployee leaves the organization by choice.

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    Job Satisfaction and

    Organizational Commitment

    Tur rTypes

    Functi nal turnover Lower-perfor ingor isruptiveemployeesleave t eorganization.

    ysfunctional turnover Key individualsand ighperformers leaveatcritical times.

    ncontrollable turnover Occurs for reasonsoutside the impact of theorganization.

    ontrollable turnover Occursdue to factors that couldbeinfluencedby theemployer

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    JOB DESIGNJOB DESIGN

    -Job design refers to organizing tasks, duties, andresponsibilities into a productive unit of work.

    - It involves the content of jobs and the effect of jobs onemployees

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    More attention is being paid to job design for three majorreasons:

    1- job design can influence performance in certain jobs,especially those where employee motivation can make asubstantial difference. Lower costs through reduced turnoverand absenteeism also are related to good job design.

    2- Job design can affect job satisfaction. Because people aremore satisfied with certain job configurations than with others,it is important to be able to identify what makes a good job.

    3. Job design can affect both physical and mental health.Problems such as hearing loss, backache, and leg pain

    sometimes can be traced directly to job design, as can stressand related high blood pressure and heart disease.The person/job fit is a simple but important concept thatinvolves matching characteristics of people with characteristicsof jobs..

    Job DesignJob Design

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    Nature ofJob Design

    JOB ENLARGEMENT AND JOB ENRICHMENT

    Job enlargement involves broadening the scope of a job by expanding thenumber of different tasks to be performed.

    Job enrichment is increasing the depth of a job by adding responsibility forplanning, organizing, controlling, and evaluating the job.

    Job rotation

    the technique known as job rotation can be a way to break the monotony

    of an otherwise routine job with little scope by shifting a person from jobto job.

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    Retention of Human Resources

    Impact of Retention Failure

    Inability to achieve business goals

    Loss of image to attract other individuals

    High costs of turnover and replacement

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    Retention of Human Resources

    Why People Stay

    Great company

    Value and culture, well-managed, and offers exciting challengesGreat job

    Freedom and autonomy, exciting challenges, and career

    advancement and growth

    Compensation and lifestyle

    Differentiated pay package, high total compensation, geographiclocation, and respect for lifestyle

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    Retention Determinants

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    Desired Organizational Characteristics

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    ManagementManagement

    ProcessProcess

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    MEASURING TURNOVER:MEASURING TURNOVER:

    WAYS IN WHICH TOMEASURE TURNOVER

    . Job and job levels department, units, and

    location

    . reason for leaving length of service

    . demographic characteristics

    . education and training

    . knowledge, skills and abilities

    . performance ratings/levels

    COMPUTING THE TURNOVER RATE:

    The Retention Management ProcessThe Retention Management Process

    100midmonthatemployeesofnumberTotal

    monththeduringsseparationemployeeofNumberv

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    Simplified Turnover Costing Model

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    The Retention Management Process

    Costs of Turnover

    Hiring costs Training costs

    Productivity costs Separation costs

    Employee Surveys

    Attitude surveyfocuses on employees feelings and beliefs about

    their jobs and the organization.

    Exit Interviews An interview in which individuals are asked to identify reasons for

    leaving the organization.

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    The Retention Management Process

    Retention Interventions

    Provide realistic job previews during the recruiting process

    Improve the selection process so that there is a better person-job fitfor new hires

    Conduct effective job orientation and initial training

    Offer competitive, fair, and equitable compensation

    Provide an adequate benefits package

    Offer career development and training

    Engage in fair and nondiscriminatory employee relations

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    Thank You !!!