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Chapter 9 H The importance of people to the success of any organization is the definition of management: the use of people and other resources to accomplish organizational objectives. Human resource management is critical to any organization. Planning for staffing needs, recruitment and selection, training, evaluating performance, compensation and benefits, and employee separation are all the core responsibilities of Human Resources. Human resource managers goal is to hire applicants who have skills the organization needs. The goal is to ensure that potential employees bring the necessary skills or have the capacity to learn them. Human resource managers must follow the requirements of federal and state laws. Increases in discrimination lawsuits have elevated the importance of human resource managers in the hiring process. Orientation and training programs provide information about what is expected of employees. Orientation and training is sometimes administered jointly between the human resource department and the department in which the employee will work. Training programs can range in the type and focus. The goal of performance appraisals is to help employees improve their performance. Managers are comparing actual results with desired outcomes. Desired outcomes are outlined in job descriptions. HR departments work to create an equitable compensation system. Compensation is important to an organization but it is also one of the organizations largest costs. The HR department must find a balance between a good compensation package and keeping costs reasonable. Today, almost one-tenth of the compensation of salaried workers is some form of variable pay. There are four forms of incentive compensation. Employee benefits are focused on employees and their families. Benefits represent a large component of an employees total compensation. Because of the increasing cost of health care, many employers are shifting the cost of health care to employees. Many companies are putting caps on what they will pay for retiree health benefits. Because the workplace has become more diverse, human resource managers are developing creative ways to tailor their benefits to the varying needs of employees. Time off is another way to increase the flexibility of employee benefits. Flexible work is another response to the diversity in employee needs. Companies have reduced employee turnover and absenteeism and boosted productivity and job satisfaction. Employee separation is a broad term covering the loss of an employee for any reason. Employee separation may be voluntary or involuntary. Downsizing and outsourcing are trends that are changing the workforce. Downsizing has been a growing trend in the 20th and 21st century. Many companies are becoming smaller by reducing the number of employees. Outsourcing is a controversial trend that has been used to remain competitive against domestic and international rivals. Employee motivation is key to effective management. Motivation starts with good employee morale. Motivation is linked to satisfy individual needs. Managers must understand some of the theories and processes associated with satisfying needs to guide motivation. Maslows Hierarchy of Needs is a very common motivation theory that managers can use to think about how employees are motivated. The focus of the theory is how a persons human needs are met. Herzberg offers another theory and tool for managers to think about. Herzberg was a social psychologist and consultant. His motivation model is popular today. Herzbergs theory amplifies the fact that the absence of a condition did not cause employees to feel bad although that factor could motivate employees. Victor Vroom developed the expectancy theory. The theory is simplistic a persons motivation can be impacted by what they expect. The equity theory focuses on fair and equitable treatment. All employees want to be treated fairly. Managers want to motivate employees toward the organizations goals. The target, objective, and results organizations look for are through goals. Goal-setting theory has become a popular motivation theory to follow with a process popularized by Peter Drucker Management by Objective. Management by Objective became popular in 1954. It was detailed in Peter Druckers book, The Practice of Management. Management by Objective clearly delineates what everyone should be doing and how these actions benefit the organization. Many managers have used job enlargement and job enrichment as strategies to motivate employees. The strategies improve employee productivity and morale. The attitudes that managers display toward employees also influence worker motivation. Douglas McGregor, a student of Maslow and psychologist, studied motivation from the perspective of managers. Theory X and Theory Y focus on the assumptions of managers. Employees join together to increase their power to achieve goals of improved wages and benefits. Unions focus on fewer work hours, better working conditions, and improved benefits. Todays workplace is very different than the one that existed at the height of union movement. Governments attitude toward unions has varied, and much of the evolution and change is attributed to labor legislation that has been enacted.

26. The process of negotiation between management and union representatives is primarily achieved through the collective bargaining process. The fact that the workers are negotiating collectively is the key power of the unions. 27. Most labor-management disputes are settled without any work stoppages. Mediation and arbitration are preferred when settling disputes because they are much less disruptive. 28. When there are disagreements between management and the union, both sides have tactics that they will implement. 29. Although union membership has grown over the 20th century, todays union membership is declining for a variety of reasons. Many wonder if unions have lost their ability to deliver greater pay and benefits to their members. 30.