MOI UNIVERSITY EXECUTIVE MBA PROGRAMME

MBA 805: HUMAN RESOURCE MANAGEMENT 1.0 HUMAN RESOURCE MANAGEMENT IN PERSPECTIVE 1.1 Evolution of the HRM function 1.2 Role of the HR function 1.3 Models of HRM 1.4 HRM and personnel management 1.5 HRM and management theory 1.1 EVOLUTION OF HUMAN RESOURCE MANAGEMENT Objec !"e#: Explain the meaning and evolution of HRM dentify the factors that have shaped modern HRM in organi!ations HRM practices emerged during the industrial revolution in the 1"th century #hen factories employed a large num$er of people to operate machines. Recruitment% payment and training $ecame speciali!ed activities% #hich re&uired speciali!ed people to do them for the organi!ations. 'ince then% the HRM function has evolved $oth in its functions% roles and even in terminologies. (or example) * +ersonnel administration * Manpo#er management * +ersonnel management * Human resource management * 'trategic human resource management ,his change in terminologies is a reflection of the $%&%'!() #*!+ # in $usiness life. ,A $%&%'!() &e+e&# - % $%& !c./%& 0%1 -+ *!23!2( %b-. 4 #ee!2( %2' '-!2( *!2(#5 6% *&12 Mc6ee4 cited in -re#ster .2///04 has identified four periods in the evolution of HRM 10 Mec*%2!# !c $e&!-' 1 ,his is the period from the 12//3s 1 125/3s #hen manufacturing #as the driving force in industry. ,he main focus #as on administrative functions such as recruiting% dismissing% paying% dealing #ith la$our unions and 4eeping records. Management of people #as guided $y the principles and ideas of scientific management advocated $y (redric4 ,aylor and Henri (ayol. 5s such efficiency #as more important than human relations 20 Le(%/!# !c $e&!-' 1 ,his is the 126/3s 1 127/3s #hich #as characteri!ed $y legislation in the civil% social% political and employment areas. ,his involved regulation of the employment and la$our mar4ets through la#s and policies such as 5fricani!ation and 8enyani!ation in 8enya% E&ual 9pportunities 5cts in the :'5 and many others to +age 1 of 70

regulate la$our unions and employment contracts. ,his period also ushered the computeri!ation of HR information. 30 O&(%2!# !c Pe&!-' 8,his is the period of organi!ational change associated #ith the 12"/3s. ;lo$ali!ation as a result of technological change led to mergers% ac&uisitions% do#nsi!ing and rightsi!ing of organi!ations. <or4force $ecame more diverse as a result of immigration% expansion of cross*$order $usinesses% more educated #or4ers #ith increased a#areness. ,hese changes re&uired specialist personnel systems. 40 S &% e(!c $e&!-' 8 1990:# 1 ,his is a period of more complicated organi!ations #ith complex structures and net#or4s. ,he hallmar4s of this period are increased competition due to glo$ali!ation hence the need for survival. 9rgani!ations adopted strategic planning. ,he role of HR #as elevated to the highest level in the organi!ation reporting to the =E9 and the -oard of >irectors. The future in the 21st century is predicted to be catalytic (a catalyst for change and the key for competitive advantage due to: * Cross border employment * Cultural mix * Use of part time workers * nnovative compensation practices * !lexi time * Team work Re%#-2# +-& G&-0 * -+ H.)%2 Re#-.&ce M%2%(e)e2 Tec*2!c%/ +%c -&#: ndustrial revolution 1 changes in the methods and techni&ues of production% #hich re&uired ne# principles% and methods of dealing #ith them. "ew experiments of social scientists * parallel #or4 $y social scientists% anthropologists and psychologists e.g. ,aylor% (ayol% Mayo and Mc;regor influenced ho# industries managed #or4ers. #rowth in the si$e of organi$ations 1 increased production% num$er of #or4ers needed speciali!ed departments to handle #or4er3s issues. %abour Unions 1 after <orld <ar 1% trade unions developed in response to poor #or4ing conditions% exploitation% politics etc. 9rgani!ations #ere forced to cooperate. C./ .&%/ %2' #-c!%/ ;$-/! !c%/ +%c -&#: -etter #or4ers3 education mmigration 1 rural*ur$an% inter * country. ?a$our mo$ility* across industries and organi!ations =omposition of la$our in terms of gender% racial and age ?i$eration@democratic movements e.g. independence% #elfare states e.g. Russia .communist countries O *e&#: =hange in managerial outloo4 1 seeing la$our as a partner rather than an enemy. =hange in form of $usiness organi!ation% mergers% ac&uisitions% MA= +age 7 of 70

 1.7

More complex production techni&ues. Ae# policies% strategies etc due to glo$ali!ation% competition etc. =ontri$ution of the social sciences 1 vie#s and theories on human relations have $een developed. ROLE OF THE HR FUNCTION AN< THE HR SPECIALIST

Re/% !-2#*!$ be 0ee2 $e&#-22e/ )%2%(e)e2 %2' - *e& -&(%2!=% !-2:# +.2c !-2# Objec !"e#: >istinguish $et#een line and staff functions Explain the staff functions of the personnel department >iscuss the sources of conflict $et#een line and staff managers 'uggest ho# such conflicts may $e overcome L!2e F.2c !-2# Refers to those functions that contri$ute directly to the accomplishment of the $asic o$Bectives of the firm. (or example in a manufacturing firm% production% &uality control and procurement may $e seen as line functions. S %++ +.2c !-2# Refers to those functions of the organi!ation that help the line to #or4 most effectively in accomplishing the primary o$Bectives of the organi!ation. ,hese may include HRM% research and development% purchasing and supplies% pu$lic relations and finance. The relationship between staff functions and other organi$ational functions is advisory and consultative& They investigate' research' and give advice and guidance& t is important to note that within even a staff department there are line authorities ( manager) subordinate& *ence a staff function also has line authority within it& +taff function occurs only in relation to other functions,departments in the organi$ation& I)$-& %2ce -+ .2'e&# %2'!2( /!2e %2' # %++ A. *-&! 1 'taff sells ideas% persuades% advocates% and acts as change agents. e.g. auditors or economists #ho advice the =E9 ?ine managers ma4e decisions% command and issue instructions through the chain of command.

R-/e# -+ *e HRM +.2c !-2 ,he overall role of the HR function is to provide support and services to line management to ena$le the organi!ation achieve its core o$Bectives. ,hese roles should $e performed #ithout appearing to usurp or police line management. HR should not force findings% ideas or suggestions on un#illing line managers $ut should sell% mar4et% persuade and consult $y acting as consultants.

+age > of 70

R-/e -+ *e HR $&-+e##!-2%/ ,he HR specialist functions as a $usiness partner% delivers effective people strategies% upholds ethical standards% manages change and is committed to continuing professional development. 'ome roles are) e2%b/!2( &-/e4 (.!'%2ce &-/e4 #.$$-& &-/e4 +%c!/! % !2( &-/e4 e)$-0e&!2( &-/e4 !2 e&"e2 !-2!# &-/e4 b.#!2e## $%& 2e&4 # &% e(!# &-/e4 !22-"% !-2 &-/e %2' !2 e&2%/ c-2#./ %2c1 &-/e. -ctivity: .hat are the likely sources of conflict between line and staff employees/ 1.> THE MO<ELS OF HRM Objec !"e#: 5t the end of this topic you should $e a$le to) 'tate and explain the models of HRM >iscuss the relationship $et#een ;uest3s soft and hard HRM approaches and the Michigan and Harvard models of HRM HRM )-'e/# 'cholars in HRM have developed various models or theories to explain the concept and practice of HRM. 'ome of these models are) .i0 .ii0 .iii0 ,he matching model of HRM $y (om$run et al .12"40 also 4no#n as the Michigan Model ,he Harvard Model $y -eer et al .12"50 ,he soft and hard models $y ;uest .12"70

T*e M% c*!2( M-'e/ -+ HRM ?F-)b&.2 e %/ 198@A n this model the #riters propose that HR systems and the organi!ation structure should $e managed in such a #ay that they are congruent or match #ith the organi!ational strategy 1 hence the name matching model. ,he #riters suggest that the HRM function should $e lin4ed to the line functions $y doing the follo#ing) +roviding the $usiness line #ith HR information Ensuring that HR mangers give HR issues e&ual attention #ith other functions Measuring the contri$ution of the HR function at the strategic managerial and operational levels Match availa$le HR to existing Bo$s 5ppraise performance Re#ard good performance >evelop high &uality employees ,his model is instrumental and calculative and emphasis is on the term B&e#-.&ce: 5ligned to the ideas of (redric4 ,aylor on productivity and cost effectiveness T*e H%&"%&' M-'e/ +age @ of 70

-eer et al .12"40 developed this model at the Harvard school. ,he model is $ased on the $elief that) +eople must $e seen as potential assets rather than merely as a varia$le cost HRM $elongs to line managers HRM involves all management decisions ?ine managers should accept more responsi$ility for ensuring the alignment of competitive strategy and HR policies Recogni!es the importance of trade offs $et#een the interest of employers and employees ,he context of HRM includes employee influence and participation HRM is composed of policies that promote mutuality of goals% influence% respect% re#ards and responsi$ility HRM outcomes are commitment% congruence and cost*effectiveness. T*e #-+ %2' H%&' HRM M-'e/# ;uest .12"70 identified t#o versions of HRM #hich he referred to as soft and hard. S-+ HRM ,his model proposes that) Employees are not li4e any other resource $ecause they thin4 and react Employees should participate in decision ma4ing Employees need opportunities for personal gro#th and advancement Employees needs for empo#erment and influence should $e consistent #ith the overall $usiness strategy and management philosophy HRM should encourage high employee commitment to the organi!ation ,here should $e high #or4force flexi$ility and adapta$ility (rom the foregoing soft HRM is more developmental oriented #ith a humanistic focus $ased on explicit statements a$out the value of employees. Employees are seen as active partners #ho are creative and innovative rather than passive inputs. 5n organi!ation practicing soft HRM #ould $e expected to stress the importance of employee commitment% trust and loyalty. ,he values of soft HRM are consistent #ith the Harvard model. T*e H%&' HRM M-'e/ ,he hard HRM model is more consistent #ith the Michigan Model developed $y (om$run et al .12"40 #hich emphasi!es matching employees #ith the organi!ations $usiness strategies. ?egge .12250 refers to it as strategic HRM. ,he model proposes that) Employees are Bust li4e any other factor of production in the input 1 output e&uation Aeed to improve employee utili!ation $y using them cost effectively Employee interests are the same those of the organi!ation .unitarism0 =oncerned #ith developing direct lin4s #ith individuals rather than trade unions Employees are more involved in improvement of &uality and productivity rather than $usiness decision ma4ing +age 5 of 70

Emphasis is on the term resource #hich implies the deployment of HR in a calculative and instrumental #ay for economic gain Hard HRM is associated #ith efficiency see4ing devices such as assessment of HR and performance related pay nvestment in training and development must fit #ith the firms $usiness strategy Hard HRM assumes that the needs of the firm are paramount and increasing productivity is the managements3 principle reason for improving efficiency. t also assumes that organi!ational needs come first.

,he Michigan Model or matching model is consistent #ith the hard HRM model $ecause it is $ased on strategic control and systems fro managing people. 1.@ HRM AN< PERSONNEL MANAGEMENT Objec !"e: 5t the end of this topic you should $e a$le to) dentify the practices% $eliefs and values that distinguish personnel management and HRM <riters have de$ated the difference $et#een personnel management and HRM. <hile $oth concepts are concerned a$out the management of people in organi!ations% there are fundamental differences in their be/!e+#4 "%/.e# %2' $&%c !ce#. Many #riters have as4ed if there is a difference $et#een HRM and personnel management .;uest 12"2C ;uest and 'isson% 1223C 5rmstrong% 2///0. 5rmstrong .12220 for instance o$serves that although HRM has $een perceived Bust as another term for personnel management% it has the virtue of emphasi!ing treating people as a 4ey resource and the #ay they are managed is seen as a direct concern of top management and part of the strategic planning processes of the firm. ,orrington .12"20 argues that HRM are similar $ut only to some extent in that $oth are derived from the organi!ation3s overall strategy% they $oth provide guidance and support to line management and they develop people and match them to the right Bo$s. +ersonnel management has even $een descri$ed as same as the soft version of HRM. Ho#ever% that appears to $e #here the similarity ends. ,he differences are highlighted in the ta$le $elo#) Pe&#-22e/ M%2%(e)e2 s instrumental% utilitarian and practical Mostly concerned #ith the administration and implementation of policies and procedures ,ends to $e reactive and diagnostic $y responding to changes in employment la#% la$our mar4et conditions and trade union actions H.)%2 Re#-.&ce M%2%(e)e2 HRM has a strategic approach #here employees needs are integrated #ith the firm3s overall corporate strategy t is proactive $y constantly see4ing to discover ne# #ays of HR utili!ation and giving the organi!ation a competitive edge Recruitment and selection strategies

+age C of 70

mposes compliance #ith company rules and procedures rather than loyalty and commitment to the firm t has short*term perspectives s concerned primarily #ith hourly% operational and clerical employees Has a pluralistic frame of reference #here conflicts of interest are inevita$le and management see4s #ays to resolve% negotiate and $alance demands of various groups

are designed to get people #ho can fit in #ith the firm3s strategies Head of the HRM function sits on the $oard of directors HR managers are expected to contri$ute to productivity% &uality improvement and stimulate creative thin4ing among employees 'ee4s to encourage flexi$le #or4 attitudes and the acceptance of ne# techni&ues Esta$lishes an organi!ational culture conducive to employee commitment% trust and cooperation HRM has long*term perspectives* it see4s to integrate all human aspects #ith the organi!ation goals HRM has a unitaristic approach #here direct communication #ith individuals is preferred over the collective Enhancement of team#or4 and participation in decision ma4ing Encouragement of employees to ac&uire long term capa$ilities rather than only competence at current duties

1.5 HRM AN< MANAGEMENT THEORY Objec !"e: Explain the contri$ution of management theory to HRM ,he development of management thought can $e classified into) 'cientific management movement Human relations movement ,he practice of management can $e traced to the $eginning of man. Egyptian% ;ree4% Roman and =hinese civili!ations all have records indicating the importance of management. .,he #ritings of 'un ,!u on the D5rt of <ar3% #ritten 25// years ago are a lesson on strategic management0

+age D of 70

n ;reece% 'ocrates the famous philosopher o$served that the management of private affairs such as households is not different from the conduct of pu$lic affairs except in magnitude. ,he $i$lical Moses used the +rinciple of delegation and hierarchy of command to manage the sraelites during the exodus. .Exodus 1") 1*270. ,he Roman =atholic =hurch over the centuries has effectively used the principles of division of la$or and hierarchy of authority. ,he Roman empire coloni!ed many parts of the #orld for many centuries $y effectively using $asic management ideas such as scalar principle and delegation of authority. Aiccolo Machiavelli in D,he +rince3 gives relevant ideas on ho# to develop and use management s4ills. He suggests to D,he +rince3 ideas on 1 consent of the maBority% inspiration of people to greater achievement% offer of re#ards and incentives as #ell as manipulation and ta4ing advantage of all opportunities.

note

The above early practices of management, however, do not give much insight into the principles of management as they are not organized and the relationships among various variables are not explained. The knowledge is based on trial and error and on experience rather than organized scientific knowledge.

Sc!e2 !+!c M%2%(e)e2 =hanges in economic and production patterns during the industrial revolution led to a fe# practicing managers to examine the causes of inefficiency in production. t is these $asic studies that led to a system of management 4no#n as #c!e2 !+!c )%2%(e)e2 . The Thoughts of !rederick Taylor (1012)13145 ,aylor% an engineer in an 5merican steel firm #as concerned a$out the $est methods of doing Bo$s. He sa# the main pro$lem as e++!c!e2c1 -+ 0-&3e&# in production. He $elieved *e&e !# -2e be# 0%1 -+ '-!2( % j-b. *is findings were: <or4ers deli$erately restricted production in their daily #or4 due to fear of unemployment and lac4 of piece rate system. ?ac4 of #or4 rationali!ation% hence overlapping of Bo$s. ,he method of #or4ing #as also too complicated. +age 8 of 70

>ue to poor remuneration% #or4ers formed themselves into groups and la$our unions to press for $etter #ages. Management left the initiative of #or4ing methods to the ingenuity of #or4ers .rule of thum$0.

,o solve the a$ove pro$lems% ,aylor suggested the follo#ing principles to guide management. Each #or4er should have a clearly defined daily tas4. Esta$lish standard conditions to ensure the tas4 is more easily accomplished e.g. #or4* study and motion studies High payment for successful completion of tas4s and none or lo#er payment #hen standards are do#n. He $elieved money #as a maBor motivator. ?I2ce2 !"e#A !or management' he suggested: ) ,he scientific selection% education and development of #or4ers. (riendly% close cooperation $et#een management and #or4ers. Managers should ta4e more supervisory responsi$ility% arguing that #or4ers preferred to $e given a definite tas4 #ith clear*cut standards. S.))%&1 He emphasi!ed planning and greater control $y managers ?)%2%(e)e2 $&e&-(% !"eEA He $elieved adoption of scientific approach to managing #ould lead to prosperity for $oth managers and #or4ers ?$e&+-&)%2ce )%2%(e)e2 EA He $elieved conflict a$out ho# to divide profits #as retrogressive and unproductive ?.2! %&!#)EA <ages should $e scientifically determined and should not $e left to the #hims of managers or po#er of trade unions ?j-b %2%/1#!# %2' j-b e"%/.% !-2 EA ,he concepts@ideas advanced $y ,aylor are not far from the fundamental $eliefs of the modern manager. 5 num$er of post ,aylor studies are found in the literature e.g. ,he Hil$reths% ;ault% Emerson% and (ilene. ,hey all attempted to improve on ,aylor3s ideas. C-2 &!b. !-2 -+ Sc!e2 !+!c M%2%(e)e2 - HRM <hat are the $enefits and #ea4nesses of scientific managementE ,o #hat extent has scientific management contri$uted to our understanding of HRM 6enefits of scientific management ts rational approach to organi!ation of #or4 ena$led tas4s to $e measured #ith accuracy ?# &.c .&e#4 #1# e)# %2' $&-ce'.&e#A

+age 9 of 70

,as4 measurement and processes provided useful information on #hich to $ase improvement on #or4ing methods ?j-b %2%/1#!# %2' j-b e"%/.% !-2A Ena$led employees to $e paid $y results and to ta4e advantage of incentive schemes ?$e&+-&)%2ce )%2%(e)e2 A 'timulated management into adopting a more positive role in leadership at the factory level ?)%2%(e)e2 c-2 &-/A A/#-F. =ontri$uted to maBor improvements in physical #or4ing conditions. t provided the foundations on #hich modern #or4 study and other &uantitative techni&ues are $ased. mprovement of #or4ing methods $rought enormous increases in productivity. .eaknesses of +cientific 7anagement Reduced the role of #or4ers to that of rigid adherence to methods and procedures over #hich they have no discretion. ?ed to fragmentation of #or4 $ecause of emphasis on analysis and organi!ation of individual operations% hence $oring and repetitive Bo$s. ;enerated a Dcarrot and stic43 approach to the motivation of employees ena$ling pay to $e geared tightly to output. t put the planning and control of #or4place activities exclusively in the hands of management% alienating #or4ers. Ruled out any realistic $argaining a$out #age rates since every Bo$ #as measured% timed and rated scientifically. H.)%2 &e/% !-2# #c*--/ -+ *-.(* 8b9ectives: Explain the contri$ution of Elton Mayo to the development of HRM >iscuss the application of Mc;regor3s theory F and theory G to the management of people >iscuss the role of motivation theories to HRM <hile the scientific management theorists #ere more concerned #ith the )ec*%2!c# %2' # &.c .&e of organi!ation% the human relations school of thought #as more concerned #ith the *.)%2 +%c -& i.e. people and their relationship #ith the organi!ation% fello# #or4ers and the Bo$. ,he emergence of industrial psychology in 1213 provided the impetus in the studies on human pro$lems in organi!ations. T*e 0-&3# -+ E/ -2 M%1- ?1880 8 19@9A +age 10 of 70

Elton #as an 5ustralian practicing psychologist at Harvard :niversity. He carried out experiments at the Ha#thorne +lant of <estern Electric over a period of time and his findings can $e summari!ed as follo#s)* ndividual #or4ers cannot $e treated in isolation $ut must $e seen as mem$ers of a group. ,he need to $elong to a group and have status #ithin it is more important than monetary incentives or good #or4ing conditions. nformal groups at #or4 exercise a strong influence over the $ehaviour of #or4ers. 'upervisors need to $e a#are of these social needs and cater for them if #or4ers are to colla$orate #ith the official@formal organi!ation rather than #or4 against it. The studies proved that interpersonal and group values are superior to managerial and individual values& 7anagers who do not have the enthusiastic support of the groups they supervise will be unable to motivate individual members to a significant degree& A##.)$ !-2# %b-. $e-$/e ,o understand the human factor in organi!ations% assumptions made a$out people need to $e understood especially in the superior*su$ordinate relationship. <-.(/%# McG&e(-& ?19CD5 Mc;regor3s theory G and theory F are a set of assumptions a$out people. 5fter o$serving the actual practice of managers% he proposed that they #ere operating on t#o levels. Theory : ,he average person has an inherent disli4e for #or4 and #ill avoid it if possi$le. -ecause of disli4e for #or4% people must $e coerced% controlled% directed and threatened #ith punishment to get them to #or4. ,he average human $eing prefers to $e directed% #ishes to avoid responsi$ility% has limited am$ition and #ants security a$ove all else. Theory ;

,he use of physical and mental effort in #or4 is as natural as play or rest. +eople #ill exercise self*direction and self control in the service of o$Bectives to #hich they are committed. =ommitment to o$Bectives is a function of the re#ards associated #ith achievement. ,he average human $eing learns under proper conditions not only to accept $ut to see4 responsi$ility.

+age 11 of 70

,he capacity to exercise a relatively high degree of imagination% ingenuity and creativity in the solution of organi!ational pro$lems is #idely and not narro#ly distri$uted. :nder conditions of modern industrial life% the intellectual potentialities of the average human $eing are only partially utili!ed.

T*<8= <+ 8! 78T >-T 8" ,he theories of motivation can $e classified into c-2 e2 %2' $&-ce## theories. Content or needs theories: ,hese are the theories that focus explicitly on the content of motivation in the form of fundamental human needs. ,hey are more concerned #ith the &uantitative aspects of motivation i.e. #hat motivates people and #hat people see4 in their #or4. Examples) Maslo#3s Hierarchy of needs theory Her!$erg3s t#o*factor theory Mc=lellands three $asic needs ?rocess or contemporary theories of motivation: ,hese are the theories #hich attempt to develop understanding of the psychological processes involved in motivation. ,hey are more concerned #ith the &ualitative aspects and the dynamics of motivation i.e. ho# people are motivated and ho# re#ards influence $ehaviour. ,hey focus on the #hy and ho# of motivation. Examples) o ?atham and ?oc4e3s goal*directed theory o +orter and ?e#ler3s expectancy theory o 5dams e&uity theory o -andura3s self*efficacy theory M%#/-0:# H!e&%&c*1 -+ Nee'# ?19@>A Maslo# #as a psychologist and his theory has found #ide application in many fields including management. He proposed that) -ehaviours of human $eings are motivated $y needs. ndividual needs can $e classified into 5 $road categories. ,hese 5 categories operate in a hierarchical manner% flo#ing from lo# order to high order needs as sho#n $elo#)

High order needs

'ocial status +age 17 of 70 'afety needs +hysiological needs

?o# order needs

+hysiological% safety and social needs are referred to as lo#er order or deficiency needs% $ecause the a$sence of them ma4e individuals deficient and existence as a human $eing is threatened. 9n the other hand% esteem and self*actuali!ation are referred to as high order needs or gro#th needs as these ma4e an individual $ecome $etter at doing #hat they are expected to do) gain control and mastery over their environment in terms of technology% services etc. Maslo#3s theory of motivation therefore states that) @when a lower order need is satisfied' the next highest becomes dominant and the individuals attention is turned to satisfying this higher need&A ,he most difficult need to satisfy is that of self*fulfillment. +sychological development ta4es place as people move up the hierarchy of needs% $ut not necessarily in a straightfor#ard progression. ,he lo#er needs still exist even if temporarily dormant as motivators% and individuals constantly return to previously satisfied needs. ,he lo#est unsatisfied need in the hierarchy is the one that motivates $ehaviour e.g. a deprived individual #ithout $asic needs #ill $e directed to#ards finding food. ,he need for safety is dormant at that time. 5 satisfied need does not motivate $ehaviour. 9nce satisfied% it ceases to $e a motivator% instead the next higher level need $ecomes active and motivates $ehaviour. A$$/!c% !-2 -+ M%#/-0:# H!e&%&c*1 -+ Nee'# T*e-&1. ?hysiological needs : nvolves mainly payment of #ages and salaries to ena$le people pay for their $asic needs of food shelter and clothing. +afety needs: +rovision of protective clothing% insurance and medical cover% pension schemes% housing and transport .in relation to safety0% and Bo$ security. +ocial needs: +romoting family feeling% intimacy and closeness% use of first names% to $rea4 formality and reduce social distance% sharing facilities e.g. cafeterias% sports clu$ etc% casual dressing to identify #ith each other and recognition of trade unions. <steem needs: 'upporting education% delegation of responsi$ility% titles and other status sym$ols% fringe $enefits e.g. =arsC $onusC sharesC office si!e and e&uipment. +elf fulfillment needs: ,his is the apex of human needs and involves the need for reali!ing ones potentialities% continued self*development% feelings of accomplishment and attainment and $eing creative in the $roadest sense +age 1> of 70

possi$le. 9rgani!ations can facilitate and create an environment in #hich individuals can reali!e their potentialities e.g. #riting% inventions% occupying important positions etc.

note

There are limits to how much organi$ations can provide to meet these needs as they are limited by resources <steem needs are mainly applicable to managers as they sometimes make important business deals informally through informal networks such as clubs& -s such' status symbols become important& t is also notable that as one moves up the ladder' fewer people benefit&

Research findings have sho#n that) Managers generally have high order needs compared to those at lo#er levels. Employees in developed countries generally have higher order needs than those in poor countries. t appears ho#ever% that Maslo# never considered the a$ove dimensions as he #as concerned #ith individual employees. HERGBERG:S THOIFACTOR THEORY OF MOTIVATION Her!$erg .12520 conducted a study% #hich focused on Bo$ satisfaction primarily to find out the factors associated #ith Bo$ satisfaction. He collected data from a sample of 2/3 accountants and engineers $ased in +itts$urg% :'5. (rom these findings he proposed that human $eings have t#o $asic needsC ,he need to avoid pain and survive. ,he need to gro#% develop and learn. He also found that factors associated #ith feelings of happiness or satisfaction #ere concerned #ith the Bo$ itself #hile those associated #ith dissatisfaction #ere related to the environment in #hich the Bo$ #as done. He came up #ith t#o sets of factors from #hich the theory #as coined. >ifferent terminologies have $een used to refer to this theory. +atisfaction)related factors +age 1@ of 70

'atisfiers Motivators Ho$ content factors ntrinsic factors

7otivators

Bissatisfaction related factors >issatisfiers Hygiene factors Ho$ =ontext factors Maintenance Extrinsic factors

*ygiene or maintenance

Her!$erg3s findings sho#ed that motivation can $e explained $y t#o factors) 5 group of needs #hich he called *1(!e2e -& )%!2 e2%2ce 2ee'# as they serve to remove dissatisfaction. ,hey are related to the Bo$ context e.g. 'upervision% company policy and administration% peer relations% #or4ing% conditions% status% Bo$ security% pay% status% Bo$ title and Bo$ security. He explained that if these factors exist% then there is no dissatisfaction% if they do not then dissatisfaction results% $ut they are not motivators as such. 5 second group of needs he called #% !#+!e&# -& )- !"% -&# and these are related to the Bo$ content. ,hey tend to increase Bo$ satisfaction e.g. achievement% recognition% #or4 itself% responsi$ility% advancement and possi$ility of gro#th. A$$/!c% !-2 -+ He&=be&(:# 0-I+%c -& *e-&1I J-b e2&!c*)e2 %2' j-b e2/%&(e)e2 Her!$erg suggested that Bo$s should $e made more interesting and challenging so as to motivate employees. 5 great deal of interest has $een directed at Bo$ satisfaction over the last decades as a popular techni&ue for increasing employee3s motivation. ,he concept of j-b e2&!c*)e2 has $een found to provide employees #ith an opportunity to) +erform more challenging and meaningful #or4. :tili!e 4no#ledge and s4ills more fully. 5ssume more authority and responsi$ility for planning% organi!ing% directing and controlling of #or4. Receive feed$ac4 on performance. ;ro# and develop

?rinciples of Cob <nrichment& Removing controls #hile retaining accounta$ility +age 15 of 70

;iving a complete unit of #or4 ;iving more authority ;iving regular feed$ac4 to employees ;iving ne#% difficult and challenging tas4s

EEEEEEE

This theory assumes that employees are only motivated by enriched 9obs and that every employee desires an enriched 9ob& n your view are these assumptions true/ .hat are the limitations of 9ob enrichment as a motivator/ L!)! % !-2# -+ J-b E2&!c*)e2 Research findings have sho#n that not all employees are motivated $y Bo$ enrichment as some) 5re una$le to tolerate responsi$ility. >isli4e complex duties. :ncomforta$le #ith group #or4. >isli4e relearning ne# s4ills. +refer security and sta$ility. :ncomforta$le #ith supervisory authority '4ills are not adapta$le. +refer to &uit their Bo$s. !or organi$ations' enriched 9obs may result in the following problems 'upervisor3s roles may $e reduced $ecause of shared responsi$ility hence causing dissatisfaction. Enriched Bo$s may increase pay dissatisfaction $ecause of increased responsi$ility. =osts in terms of training and development% ne# technology and more e&uipment e.g. computers may increase. :nions may oppose some Bo$ enrichment efforts for fear of loss of employment or decreased mem$ership due to reduced desire to Boin unions $y satisfied employees.

PROCESS THEORIES OF MOTIVATION

+age 1C of 70

+rocess theories of motivation #ere proposed as alternatives and to fill the gaps not explained $y the content theories. +rocess theories are more concerned #ith the cognitive antecedents that go into the motivation process. ,his include) expectancy theory $y Iictor Iroom .12640 and the +orter*?a#ler Model .126"0C E&uity theory $y 'tacy 5dams and 5ttri$ution theories and others. n this section #e shall only discuss a fe# of these. EK$ec %2c1 T*e-&1 -+ M- !"% !-2 Iictor Iroom developed this theory in 1264 as an alternative to the content theories of motivation. t refers to any situation or context #here people have expectations from #hatever they do. t states that @motivated behaviour is increased if a person perceives a positive relationship between effort and performance ( i&e& the outcome& -ased on this theory% extrinsic financial motivation #or4s only #hen if the lin4 $et#een effort and re#ard is clear and the value of the re#ard is #orth the effort. M%2%(e&!%/ I)$/!c% !-2# -+ EK$ec %2c1 T*e-&1. 'trengthen employees effort and performance expectations $y providing resources such as training% that ena$le employees to perform. 'trengthen performance1outcome1re#ards $y lin4ing performance #ith re#ard e.g. pay. Managers should $e consistent and transparent a$out criteria used for promotion. Match re#ards #ith employee3s performances. Recogni!e employee3s a$ility and ensure that it is used optimally. +rovide employees #ith opportunity to perform e.g. ena$ling environment% resources% etc. >evelop appropriate procedures for evaluating employee performance $y measuring actual performance% aptitude and criteria for promotion. EL.! 1 T*e-&1 -+ M- !"% !-2 ,his is a process theory advanced $y 'tacy 5dams .126"0. <Duity refers to perception of fairness and 9ustice in the treatment of people& f people feel that they are not $eing treated e&uita$ly% they feel aggrieved and this grief #ill affect their levels of motivation in different #ays. n the #or4place% employees compare themselves #ith their peers in terms of their contri$ution to the organi!ation and in relation to #hat they get from the organi!ation. ,hey compare their ratio of inputs and outcomes #ith that of another person. nputs: refer to the contri$utions made $y an individual e.g. effort 1 $oth physical and mental% time% education% training% experience% loyalty% useful contacts age% gender etc.. 8utcome: refers to #hat is received in return for effort e.g. salary% fringe $enefits% travel allo#ances% medical insurance cover% status sym$ols% autonomy% recognition% friendly environment etc. EK%)$/e# -+ &% !-# -+ -. c-)e# - !2$. # +age 1D of 70

.i0 .ii0 .iii0

9utcomes of D53 nputs of D53

J 9utcomes of Dnputs of D-3

J J J

'atisfaction .E&uity0 :nderpayment . ne&uity0 9verpayment . ne&uity0

9utcomes of D53 K 9utcomes of D-3 nputs of D53 nputs of D-3 9utcomes of D53 L 9utcomes of D-3 nputs of D53 9utcomes of D-3

=eactions of E-F n situation .ii0% D53 #ill act on outcomes to restore e&uity i.e. #here there is perception of underpayment $y stealing from the organi!ation% ta4ing 4ic4$ac4s% undermining D-3% Boining trade unions or reducing effort. n .iii0 D53 #ill attempt to restore $alance $y decreasing or increasing effort% e.g. #or4ing longer hours% producing &uality #or4% $eing loyal and committed to organi!ation etc% or $y rationali!ing or Bustifying the higher outcomes on the $asis of experience% educational levels etc. .resorting to su$Bective distortation of D53s or D-3s inputs0. n situation .i0% there is perception of e&uity% hence no pro$lems.

note

<Duity is taken seriously by employees and management decisions and actions must be seen to be fair The striving to restore the outcome,input ratio to eDuity is used as the explanation of work motivation& .orkers prefer eDuitable payment to over)payment& =esearch has shown workers on a piece rate system who felt overpaid reduced their productivity to restore eDuity&

G-%/ T*e-&1 ?L% *%) %2' L-c3e4 19D9A t states that motivation and performance are higher #hen) ndividuals are set specific goals ;oals are difficult $ut accepted ,here is feed$ac4 on performance ;oal theory is aligned to the concept of management $y o$Bectives .M-90 and it forms the foundation for performance management process. MOTIVATIONAL STRATEGIES AN< CHALLENGES +age 18 of 70

?F.& *e& &e%'!2(I A&)# &-2(4 70014 $%(e 1C8I1C9A S &% e(!e# 7oney: t is an important motivator as it reflects on other motivators e.g. status% esteem% achievement etc. Hence it is complicated as it is entangled #ith other needs. Money has sym$olic po#er 1 its value comes from #hat it can $uy. ,o increase the motivational value of money% an incentive plan@system should $e introduced% as the extra money is usually spent on high*value Dextra3 items. E&uita$le salary structures in organi!ations lessens the importance of money as a motivator% hence Her!$erg3s contention that money is a hygiene% not a motivator. ?ositive reinforcement: ,his idea #as advocated $y -.(. '4inner. He suggests that individuals can $e motivated $y designing their Bo$s #ell% praising good performance so that it can $e repeated and removing $arriers to performance and good communication. ?articipation: Having 4no#ledge of #hat is happening and $eing as4ed to participate in solving pro$lems is motivating to employees as it appeals to the need for recognition% affiliation and acceptance and it gives people a sense of accomplishment. Cob <nrichment: nvolves ma4ing a Bo$ more challenging and important $y increasing scope of authority and responsi$ility. ,hese can $e achieved $y) giving #or4ers more say in deciding a$out #or4 methods% tas4 se&uencing etc. encouraging su$ordinate participation and interaction among #or4ers. ;iving #or4ers a feeling of personal responsi$ility for their tas4s. Ensuring that people see the contri$ution of their tas4s in the overall result. ;iving feed$ac4 on performance.
note

J-b e2&!c*)e2 %$$e%/# )%!2/1 - *!(*e& /e"e/ 2ee'# #.c* %# # % .#4 e# ee) %2' #e/+I+./+!//)e2 . 9ther strategies of motivation may includeC promotion to higher responsi$ility% personal interest $y manager% status sym$ols% training and development% monitoring% leadership style etc. "egative reinforcement or punishment: ,hese should $e avoided as it has the tendency of stimulating anger% hostility% aggression% and re$ellion in #or4ers. ,he motivational effects are only short term. EEEEEEE n your view to what extent do you think money can be used as a motivation +age 19 of 70

C*%//e2(e# Motivation is a psychological and a social process. 5lthough the theoretical concepts appear simple and straightfor#ard% they are difficult to implement in real life $ecause of the follo#ing)* Bifferences among people: +eople differ in their expectations% hence re&uire different types of incentives. (or example% #hile scientists% engineers and other professionals may have a stronger need for achievement% managers and politicians have a stronger need for po#er. Aeeds also differ $ecause of demographic characteristics of employees such as gender% age% race% education% personal am$ition% cultural $ac4ground% occupation etc. +ocial and economic change) =hanges that impact on peoples lifestyles% such as increased education% tastes and preferences% cross*cultural interactions mean that motivating techni&ues #hich #or4ed a decade ago may not #or4 today. <mployees personal problems: Motivation can $e effective only to a limited extent as people may have pro$lems that are $eyond management and cannot $e solved $y motivation. %ack of resources: 9rgani!ations may $e #illing to motivate its employees% $ut may lac4 the resources to do so. ,his is especially so for financial motivators. 7otivation is an internal instinct : motivation $y nature is an internali!ed process that comes from #ithin the individual. Reinforcements are only needed to activate it. ,hus a manager can give only encourage it% $ut the actual and effective motivation #ill depend upon the internal #ill of the employee. 7otivation is situation oriented: Iaria$les in motivation situation are% the motivator, the motivated, the motivational technique and the motivational circumstances all of #hich affect the motivational outcome. ,o achieve a positive outcome% all four must $e in congruence* #hich almost impossi$le. #iven the complexity of motivation in the light of varying personalities and situations it is clear that risks of failure exist when any group of motivators are applied without taking into account all the variables&
note

+age 70 of 70