HRM and Business

Wednesday/Friday

08/23-25/06

“Life-Long Learning Gem”

Investopedia’s Term for 8/23/06:

True Cost Economics

Your Challenge

Understand Chapters 1 & 2 of the text. Understand Historical Development of HRM Know the HRM Functions Understand Strategic HRM Develop the perspective that a “Strategic Value-

Added Framework” should influence all HRM pursuits.

Textbook Resource

Website: http://college.hmco.com/business/fishe

r/hr_manage/6e/students/index.html

100 Best Places to Work

How has J.M. Smucker Company managed to be on the list each year?A Simple Code:– Listen with your full attention– Look for the good in others– Have a sense of humor– Say “Thank You” for a job well-done

The Human Equation-Making Firms Profitable:

Employment security to build commitment Selective hiring to get right people Self-managed teams/decentralization Higher compensation contingent on firm

performance Extensive training so employees identify

and resolve problems Reduced distinctions based on status Extensive sharing of information

Managing People The major goal of managing people:

– Attract, retain, and develop a group of effective people

We do this as part of a business management system that includes managing:– physical resources (capital), – financial resources (capital), – marketing capabilities / other information, – and people.

The ultimate goal is to enhance shareholder value now and in the future

Goodsand

Services

Goodsand

Services

PhysicalFinancialMarketingPeople

More Productive organizations

Less Productive organizations

PRODUCTIVITY

PhysicalFinancialMarketingPeople

A Brief History of HRM

Industrial RevolutionScientific ManagementEmergence of Free Collective BargainingEarly Industrial PsychologyPublic and Private Sector Merit Human Relations MovementBehavioral SciencesEmployment Legislation/Court DecisionsHR as Strategic Partners in Successful Firms

Strategic HRM View

J.M. Smuckers Managing People

– Taking care of the HR functions – Communicating effectively– Motivating effectively– Strategic HRM

HR Functions HR Planning Job Analysis/Job Descriptions EEO/AA Recruiting Selection Training and Development Performance Management Compensation Benefits Safety and Health Labor Relations Organizational Exit

Communicating Effectively

Formal/Informal Communications Verbal/Non Verbal Basic Communication Models Improving Communication

Listen Effectively/Actively Know Communication Barriers

WHY IS MOTIVATION IMPORTANT?

EFFECTIVE PERFORMANCE

results from the interplay of a person’s

Skills & Abilities,

Motivation,

Organizational Support

Motivating Employees

Individual DifferencesInfluence Motivation:

Attitudes and Values

Personality

Needs

Motivation Explanations

REINFORCEMENT NEEDS GOAL-SETTING EQUITY EXPECTANCY

Reinforcement Theory

Behavior is a function of its consequences.

Law of Effect

Behavior Modification

“Needs” Theories

A need is a strong feeling of deficiency thatcreates an uncomfortable tension. A person will attempt to meet his/her need to reduce the tension.

Maslow’s Need Hierarchy(Physiological, safety, belongingness,

esteem, SA)

Learned Needs Theory(nAchievement, nAffiliation, nPower)

Goal-Setting Theory

Specific, written goals increase performance

Difficult (accepted) goals increase

performance

Goal feedback increases performance

Most Powerful Motivational Application

Equity TheoryBased on perceived fairness.

Oown / Iown = Oother / Iother

PERCEIVED INEQUITY MOTIVATES:Change inputs

Change outcomesChange perceptions

Change referent otherChange the environment

Expectancy Theory

Effort Performance Outcomes

E PExpectancy

P OExpectancy

Strategic HRM View