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Chapter 8

Chapter 8 .docx

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Rotman Commerce
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Michael Khan

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Chapter 8: Human Resource Management – From Recruitment to Labor Relations Mohamedali Shariff (Full) Human Resources: The People behind the People - Best firms value employees as much as their customers - Human Resource Management: The goal of it to give high job satisfaction and dedication to employees. It is the function of attracting, developing and retaining high quality employees who can achieve an organization’s objectives. - The HR (human resource) department generally does the following: o Plans for staffing needs o Recruits and hires workers o Trains and evaluates performance o Decides on compensation and benefits o Oversee employee separation - In doing this, the HR managers achieve the following tasks o Provides, qualified, well-trained employees for the organizations o Maximizes employee effectiveness o Satisfies individual employees through monetary compensation, benefits, opportunities to advance and job satisfaction Recruitment and Selection - Human resource managers are responsible for selecting qualified and skilled employees to the organization - As such, most firms have a recruitment and selection process as follows Finding Qualified Candidates - Difficult to find qualified candidates - Traditional methods include college/university job fairs, personal referrals and want ads - Now must companies rely on their website o Quick, cheap and efficient way to reach job seekers Selecting and Hiring Employees - Selects and hires employees often by working with department managers/supervisors - Must follow laws (provincial/federal), no discrimination - Lots of hiring restrictions, very expensive Orientation, Training and Evaluation - Orientation generally gives an overview of the company policies regarding their rights and benefits Training Programs - Allows workers to develop their skills and knowledge (increases efficiency) - On the Job Training o Perform regular tasks under the guidance of experienced employees Chapter 8: Human Resource Management – From Recruitment to Labor Relations o Variation of it is apprentice training (works as assistant to the trained worker) - Classroom and Computer-Based Training o Computer based training is very cheap, and workers can go at their own pace (interactive learning) - Management development o Provides training designed to develop and broaden the skills of future managers/executives Performance Appraisals - Performance Appraisal: Evaluation and feedback on an employee’s performance - In order for a performance appraisal to be effective, it must: o Take place several times a year o Be based on objective measures o Based on organizational goals o Be a two way conversation - Peer reviews assess performance of coworkers - 360 degree performance review o Uses panel of 8 to 12 people for feedback from as many viewpoints as possible Compensation - Compensation: The amount employees are paid in money and in benefits - Effects many aspects of the employees life - Wage: hourly pay rate or based on the amount of work accomplished - Salary: Calculated periodically (weekly/monthly) o paid set amount that does not rise or fall based on the number of hours worked - firms generally base their compensation policies on the following factors: o what competitors are paying o government regulation o cost of living o company profits o employee productivity - try and find balance between rewarding workers and maintaining profits (do this by incentives for good performance) o profit sharing (bonuses based on company profits) o Gain sharing (financial value of productivity gain/other form of higher level of function is shared) o Lump-sum bonuses and stock options o Pay for knowledge (distributes wage/salary increases as employees learn new job tasks) Chapter 8: Human Resource Management – From Recruitment to Labor Relations Employee Benefits - Employee Benefits: Additional compensation to employees paid for in full or partly by the employer - Wages and salary typically account for 70% of workers compensation, the rest are benefits (pensions and other retirement plans account for a large portion of benefits) - Some benefits legally required (worker’s compensation/unemployment benefits) Flexible Benefits - Diverse workplace, want to tailor benefits to employee’s individual needs - Flexible benefits plan/Cafeteria plan o Employee’s get to choose the benefits they wish to have o Flex dollar aspect to it o Offer tax benefits - Flexible work hours in the form of paid time off (take time off without any reason, takes out funds from account) Flexible Work - Flexible work plans o Adjust working hours/locations to suit their needs - These plans generally include: o Flextime  Set core hours, outside of core hours employee can choose what time period to work o Shared work  Share task b/w two or more people o Compressed work week  More hours for fewer days o Telecommuting/working at home Employee Separation - Employee Separation: Broad term referring to the loss of an employee for any reason (voluntarily or not) Voluntary and Involuntary Turnover - Turnover occurs when an employee leaves the job - Voluntary or involuntary based on the employee Downsizing - Downsizing: reducing the number of employees in a firm by eliminating jobs Chapter 8: Human Resource Management – From Recruitment to Labor Relations - Can be done by offering early retirement or voluntary severance programs - Downsizing doesn’t always work - Has following effects o More anxiety amongst current employees (lower productivity) o Expensive severance packages o Negative multiplier effect on the local economy Outsourcing - Using outside vendors to produce goods/perform services that were usually produced/performed in house or country - Jobs transferred from inside the firm to outside Motivating Employees - One of managers main goals is to motivate employees to remain loyal to their company and perform as efficiently as they can - Starts with good employee morale Maslow’s Hierarchy of Needs Theory - Maslow’s hierarchy of needs: theory of motivation proposed by Abraham Maslow o Assumes that people’s needs depend on what they already possess o A satisfied need is not a motivator: only unsatisfied ones can be motivators o Once one need is satisfied, another emerges and demands satisfaction - Five types of needs o Physiological (basic human needs: food, shelter, clothing etc.) o Safety needs (desires for physical and economic protection( o Social needs (accepted by family, friends, co-workers) o Esteem needs (feel valued and recognized by others) o Self-Actualization needs (seek fulfillment of dreams and capabilities) - Lower order must be satisfied before the higher order Herzberg’s Two-Factor Model of Motivation - Two hygiene factors (maintenance factors) are important to job satisfaction, but do not necessarily motivate the employee) o Do not directly relate to a task, more a job environment (pay, job security etc.) - Motivator factors can produce high level of motivations when present o Relate directly to specific aspects of a job, including responsibilities, achievements, etc. Expectancy Theory and Equity Theory - Expectancy Theory: process people use to evaluate whether their efforts will lead to the results they want and the degree to which they want those results - Equity Theory: Employees look at their level of effort, and the reward, and compare to others. If others get more reward for the same amount of work, Chapter 8: Human Resource Management – From Recruitment to Labor Relations they will reduce their effort to restore the balance. If they feel they are being rewarded more for the same effort, they will feel guilty and work harder. Goal-Setting Theory and Management by Objectives - Goal-setting Theory: people will be motivated to the accept specific, challenging goals, and receive feedback on their progress towards the goal - Goal specificity helps motivate via eliminating ambiguity - Goal acceptance motivates by exploiting employee agreement and therefore motivation to achieve the goal - Sometimes, the goal difficulty can actually motivate the employee to increase their performance - Finally, performance feedback will give useful feedback to the employee about how their efforts are working towards achieving the goal - Goals help focus workers on the important parts of their jobs, and also helps to motivate and energize them - They create a po
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