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Fundamentals of Human

Resource Management
Eighth Edition

DeCenzo and Robbins

Chapter 2
Fundamentals of HRM
Management Essentials
Management involves setting goals and
allocating scarce resources to achieve
them.
Management is the process of efficiently
achieving the objectives of the
organization with and through people.
Modern Organizations
Learning Organization
An organization that has developed the
capacity to continuously learn, adapt, and
change.
Knowledge Management
The cultivation of a learning culture where
organizational members systematically
gather and share knowledge with others
in order to achieve better performance.
Learning Organization versus
Traditional Organization
Management Essentials
Primary Functions of Management
Planning establishing goals
Organizing determining what activities need
to be done
Leading assuring the right people are on the
job and motivated
Controlling monitoring activities to be sure
goals are met
Why is HRM Important to an
Organization?
The role of human resource managers has
changed. HRM jobs today require a new level of
sophistication.
Federal and state employment legislation has placed
new requirements on employers.
Jobs have become more technical and skilled.
Traditional job boundaries have become blurred with
the advent of such things as project teams and
telecommuting.
Global competition has increased demands for
productivity.
Why is HRM Important to an
Organization?

HRM is part of the organization concerned


with the people dimension.
HRM is both a staff, or support function
that assists line employees, and a function
of every managers job.
Four basic functions

Staffing
Training and
Development
Motivation
Maintenance
Functions of HRM

Hiring People
Preparing them
Stimulating them
Keeping them
How External Influences Affect
HRM

Strategic Environment
Governmental Legislation
Labor Unions
Management Thought
How External Influences Affect
HRM
HRM Strategic Environment includes:
Globalization
Technology
Work force diversity
Changing skill requirements
Continuous improvement
Work process engineering
Teams
Employee involvement
Ethics
How External Influences Affect
HRM
Governmental Legislation
Laws supporting employer and employee
actions
Labor Unions
Act on behalf of their members by negotiating
contracts with management
Exist to assist workers
Constrain managers
Affect non unionized workforce
How External Influences Affect
HRM
Management Thought
Management principles, such as those from
scientific management or based on the
Hawthorne studies influence the practice of
HRM. (Taylor, Mintzberg, Fayol)
More recently, continuous improvement
programs have had a significant influence on
HRM activities.
Staffing Function Activities
Employment planning
ensures that staffing will contribute to the
organizations mission and strategy
Job analysis
determining the specific skills, knowledge and
abilities needed to be successful in a
particular job
defining the essential functions of the job
Staffing Function Activities
Recruitment
the process of attracting a pool of qualified
applicants that is representative of all groups
in the labor market
Selection
the process of assessing who will be
successful on the job, and
the communication of information to assist
job candidates in their decision to accept an
offer
Goals of the Training and
Development Function
Activities in HRM concerned with
assisting employees to develop up-to-
date skills, knowledge, and abilities
Orientation and socialization help
employees to adapt
Four phases of training and development
Employee training
Employee development
Organization development
Career development
The Motivation Function
Activities in HRM concerned with helping
employees exert at high energy levels.
Implications are:
Individual
Managerial
Organizational
Function of two factors:
Ability
Willingness
The Motivation Function

Managing motivation includes:


Job design
Setting performance standards
Establishing effective compensation and
benefits programs
Understanding motivational theories
Motivation and Needs
Three-Needs Theory (McClelland)
There are three major acquired needs
that are major motives in work.
Need for achievement (nAch)
The drive to excel and succeed
Need for power (nPow)
The need to influence the behavior of others
Need of affiliation (nAff)
The desire for interpersonal relationships
Motivation and Goals
Goal-Setting Theory
Proposes that setting goals that are accepted, specific, and
challenging yet achievable will result in higher
performance than having no or easy goals.

Benefits of Participation in Goal-Setting


Increases the acceptance of goals.
Fosters commitment to difficult goals.
Provides for self-feedback (internal locus of control) that
guides behavior and motivates performance (self-efficacy).
Goal-Setting Theory
What do you want from
your job?
Reason % age of respondents

Good coworkers 71%

Pleasant work environment 68%

Easy commute 68%

Challenging work 65%

Flexible work hours 54%


Designing Motivating Jobs
(contd)
Job Characteristics Model (JCM)
A conceptual framework for designing motivating jobs
that create meaningful work experiences that satisfy
employees growth needs.
Five primary job characteristics:
Skill variety: how many skills and talents are needed?
Task identity: does the job produce a complete work?
Task significance: how important is the job?
Autonomy: how much independence does the jobholder
have?
Feedback: do workers know how well they are doing?
Job Characteristics Model

Source: J.R. Hackman and J.L. Suttle (eds.). Improving Life at Work (Glenview,
IL: Scott, Foresman, 1977). With permission of the authors.
Motivation and Perception
Equity Theory
Proposes that employees perceive what they get from
a job situation (outcomes) in relation to what they put
in (inputs) and then compare their inputs-outcomes
ratio with the inputs-outcomes ratios of relevant
others.
If the ratios are perceived as equal then a state of equity
(fairness) exists.
If the ratios are perceived as unequal, inequity exists and the
person feels under- or over-rewarded.
When inequities occur, employees will attempt to do
something to rebalance the ratios (seek justice).
Motivation and Perception
(contd)
Equity Theory (contd)
Distributive justice
The perceived fairness of the amount and allocation
of rewards among individuals (i.e., who received
what).
Influences an employees satisfaction.

Procedural justice
The perceived fairness of the process use to
determine the distribution of rewards (i.e., how who
received what).
Affects an employees organizational commitment.
Motivation and Behavior
Expectancy Theory (Vroom)
States that an individual tends to act in a certain
way based on the expectation that the act will be
followed by a given outcome and on the
attractiveness of that outcome to the individual.
Key to the theory is understanding and managing
employee goals and the linkages among and
between effort, performance and rewards.
Effort: employee abilities and training/development
Performance: valid appraisal systems
Rewards (goals): understanding employee needs
Motivation and Behavior
(contd)
Expectancy Relationships
Expectancy (effort-performance linkage)
The perceived probability that an individuals
effort will result in a certain level of performance.
Instrumentality
The perception that a particular level of
performance will result in the attaining a desired
outcome (reward).
Valence
The attractiveness/importance of the performance
reward (outcome) to the individual.
How Important is the
Maintenance Function
Activities in HRM concerned with maintaining
employees commitment and loyalty to the
organization.
Health
Safety
Communications
Employee assistance programs
Effective communication programs provide for 2-
way communication to ensure that employees
are well informed and that their voices are heard.
Thankyou

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