01 412 HRM and Business

1

• HRM and Business
• Wednesday/Friday
• 08/23-25/06
• Life-Long Learning Gem
• Investopedias Term for 8/23/06
• True Cost Economics

2
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.

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Textbook Resource

• Website
• http//college.hmco.com/business/fisher/hr_manage/
  6e/students/index.html

4
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

5
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

6
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

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PRODUCTIVITY
Goods and Services
More Productive organizations
Physical Financial Marketing People
Less Productive organizations
Goods and Services
Physical Financial Marketing People
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A Brief History of HRM
?Industrial Revolution ?Scientific
Management ?Emergence of Free Collective
Bargaining ?Early Industrial Psychology ?Public
and Private Sector Merit ?Human Relations
Movement ?Behavioral Sciences ?Employment
Legislation/Court Decisions ?HR as Strategic
Partners in Successful Firms
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Strategic HRM View
10
J.M. Smuckers

• Managing People
• Taking care of the HR functions
• Communicating effectively
• Motivating effectively
• Strategic HRM

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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

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Communicating Effectively
? Formal/Informal Communications ? Verbal/Non
Verbal ? Basic Communication Models ? Improving
Communication ? Listen Effectively/Actively ?
Know Communication Barriers
13
Motivating Employees
WHY IS MOTIVATION IMPORTANT?
EFFECTIVE PERFORMANCE results from the interplay
of a persons Skills Abilities, Motivation,
Organizational Support
14
Individual Differences Influence Motivation

• Attitudes and Values

• Personality

• Needs

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Motivation Explanations

• REINFORCEMENT
• NEEDS
• GOAL-SETTING
• EQUITY
• EXPECTANCY

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Reinforcement Theory
Behavior is a function of its consequences.
Law of Effect
Behavior Modification


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

• Maslows Need Hierarchy
• (Physiological, safety, belongingness, esteem,
  SA)
• Learned Needs Theory
• (nAchievement, nAffiliation, nPower)

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Goal-Setting Theory

• Specific, written goals increase performance
• Difficult (accepted) goals increase performance
• Goal feedback increases performance
• Most Powerful Motivational Application

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Equity Theory
Based on perceived fairness.
Oown / Iown Oother / Iother
PERCEIVED INEQUITY MOTIVATES Change
inputs Change outcomes Change perceptions Change
referent other Change the environment
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Expectancy Theory
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Strategic HRM View