CHAPTER 2

HRM

Dr. Malik Faisal Azeem

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Department of Management Sciences
WHAT DO YOU KNOW ABOUT HRM?

• WHO?
• WHAT?
• WHERE?
• WHEN?
• WHY?

Dr. Malik Faisal Azeem

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Department of Management Sciences
1: MANAGEMENT ESSENTIAL
FUNCTIONS
• Plan
• Organize
• Lead
• Control

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2: IMPORTANCE OF HRM

• Complexity
• Change
• Strategy

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2: CHANGE AND COMPLEXITY

• Complicated laws
• Complex jobs
– Skills, boundaries,
project teams
• Global work sites
• HR specialists
– Psychology, sociology,
law, organization and
job design

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Department of Management Sciences
2: STRATEGY AND
REPRESENTATION
• Competitive advantage
• Proactive
• Culture
• Performance systems
• Recruiting
• Training
• Retention

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Department of Management Sciences
2: HRM DEFINITION

• Staff or support
function
• Part of every
managerial job

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3: HRM ACTIVITIES

• GETTING PEOPLE
• PREPARING PEOPLE
• STIMULATING PEOPLE
• KEEPING PEOPLE

• (Any questions about that part of

your job as a manager?)

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Human Resource Management: Primary Activities

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3: STAFFING (GET)

• Strategic human
resource planning
• Recruiting
• Selection

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4: TRAINING AND DEVELOPMENT
(PREPARE)
• Orientation
• Training
• Development
– Employee
– Career
– Organization

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5: MOTIVATION (STIMULATE)

• Job design
• Performance appraisals
• Rewards and
compensation
• Employee benefits

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5: MAINTENANCE (KEEP)

• Health and safety

• Communications
• Employee relations

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6: MAJOR EXTERNAL INFLUENCES
ON HRM
• Dynamic environment
• Government legislation
• Labor unions
• Current management
practices

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Department of Management Sciences
 6: LEGISLATION

• How have employment laws affected

– Your work life?
– Your family life?
– Your parents?

• Pair up with a person

next to you and tell each
other “stories”
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 6: LABOR UNIONS

• Exist to assist workers

• Constrain managers
• Affect non unionized
workforce

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 7: STAFFING ACTIVITIES

• Employment planning
– Strategic goals and
objectives
– Job requirements
change
• Job analysis
– Job description
– Job skills
• Recruiting
• Selection
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 7: TRAINING AND DEVELOPMENT
GOALS
• Adapt to new
surroundings
• Cope with change
• Meet organizational
needs

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Exhibit 2-3: Training and Development Activities

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 8: MOTIVATION

• Implications
– Individual
– Managerial
– Organizational
• Performance
– Willingness
– Ability
• Respect

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Department of Management Sciences
 8: MOTIVATION GOAL

• Competent and
adapted employees
• With up-to-date skills,
knowledge, abilities
• Exerting high energy
levels

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Department of Management Sciences
 Motivating Employees
 Motivation starts with good employee morale, the mental
attitude of employees toward their employer and job.
 High employee morale occurs in organizations where workers feel
valued, heard, and empowered to contribute what they do best.
 Poor morale shows up through absenteeism, voluntary turnover, and lack
of motivation.

Dr. Malik Faisal Azeem

Department of Management Sciences

 Maslow’s Professional Life
• Studied dominance in monkeys
• Received Ph.D. in experimental
psychology in 1934
• Was on the Brooklyn College
faculty, 1937-1951
• Was on the Brandeis U faculty,
1952-1969
• Became a fellow of Laughlin
Foundation in CA
• Died in 1970, age 62
Dr. Malik Faisal Azeem

Department of Management Sciences

 Maslow’s Hierarchy of Needs (1954)
 Maslow’s Hierarchy of Needs: people have five levels of needs that they seek
to satisfy.
 A satisfied need is not a motivator; only needs that remain unsatisfied can
influence behavior.
 People’s needs are arranged in a hierarchy of importance; once they satisfy one
need, at least partially, another emerges and demands satisfaction.
Physiological needs – food, water, air, sleep

Safety needs - from physical attack, from emotional attack, from fatal
disease, from invasion, from extreme losses (job, family members,
home, friends)

Social (belongingness) needs -

Inclusion - part of a group: colleagues, peers, family, clubs
Affection - love and be loved
Control - influence over others and self

Dr. Malik Faisal Azeem

Department of Management Sciences

Esteem needs - respect from others through: awards
honors status
respect for self through: mastery achievement
competence
• .
Self-actualization needs –
• stop cruelty and exploitation encourage talent in others
• try to be a good human being
• do work one considers worthwhile
• enjoy taking on responsibilities
• prefer intrinsic satisfaction
• seek truth
• give unselfish love
• be just Dr. Malik Faisal Azeem

Department of Management Sciences

 Hierarchy of Needs
B- Needs
Self-Actualization (being)
Needs Higher needs

Esteem
Needs

D- Needs Love & Belonging

Deficit Needs
Survival
Safety Needs

Physiological Needs
Dr. Malik Faisal Azeem

Department of Management Sciences

 Herzberg’s Two-Factor Theory
 Hygiene Factors – result  Motivator Factors –
in satisfaction can produce high levels
 Job Environment of motivation if present
 Salary  Achievement
 Job Security  Recognition
 Personal Life  Advancement
 Working Conditions  The Job Itself
 Status  Growth Opportunities
 Interpersonal Relations  Responsibility
 Supervision
 Company Policies

Dr. Malik Faisal Azeem

Department of Management Sciences

 Herzberg’s Two-Factor Theory
• Views on job satisfaction
• Extrinsic conditions or job context include pay, status, working
conditions. The presence of these conditions does not
motivate the person but the absence results in dissatisfaction.
Also called hygiene factors
• Intrinsic conditions or job content include feelings of
achievement, increased responsibility and recognition. The
absence does not lead to dissatisfaction but when present
they build levels of motivation that result in good job
performance. Also called motivators.
• Requires an enriched job to motivate employees

Dr. Malik Faisal Azeem

Department of Management Sciences

Equity theory (Adams, 1965) is based on the premise that there is one
important cognitive process which involves employees comparing what effort
other employees are putting into their work, what rewards they receive and
comparing their own experience.
 
Equity relates to the experience of a similar or dissimilar attribution of rewards
for an employee relative to the service he/she provides. Inequity being when
the experience is negative in nature – for instance that a person who provides a
similar output is better rewarded.

Expectancy Theory (1964) is another theory of a process nature which was

developed by Vroom. This theory looks at the inter-relationship of levels of
output and desirable reward. Expectancy is termed ‘the link between effort
and performance’. An equation exists to display the correlation between effort,
performance and outcome expectancy

Dr. Malik Faisal Azeem

Department of Management Sciences

 Expectancy Theory & Equity Theory
 Expectancy Theory –  Equity Theory –
describes the process people individual’s perception of
use to evaluate the likelihood fair and equitable
that their efforts will yield the
treatment
results they want, along with
the degree to which they want
those results

Dr. Malik Faisal Azeem

Department of Management Sciences

 Goal-Setting Theory by Edwin A. Locke in the
1960s
 Goal: target, objective, or
result that someone tries to
accomplish
 Goal-setting theory --
people will be motivated to
the extent to which they
accept specific,
challenging goals and
receive feedback that
indicates their progress
toward goal achievement

Dr. Malik Faisal Azeem

Department of Management Sciences

Goal setting involves establishing specific, measurable, achievable,
realistic and time-targeted (S.M.A.R.T ) goals. Work on the theory
of goal-setting suggests that an effective tool for making progress is
to ensure that participants in a group with a common goal are clearly
aware of what is expected from them. On a personal level, setting
goals helps people work towards their own objectives. Goal setting
features as a major component of personal development literature.
The word goal is also one of the most recognizable words in
management for motivational endeavors.
It is considered an “open” theory, so as new discoveries are made it
is modified. Studies have shown that specific and ambitious goals
lead to a higher level of performance than easy or general goals. As
long as the individual accepts the goal, has the ability to attain it, and
does not have conflicting goals, there is a positive linear relationship
between goal difficulty and task performance.
Dr. Malik Faisal Azeem

Department of Management Sciences

 8: MAINTENANCE

• Health
• Safety
• Communications
• Employee assistance
programs
• Environment where
employee voices are
heard

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Department of Management Sciences
 9: HR DEPARTMENTS

H R D IV IS IO N

VP HR

EM PLO YM ENT M ANAG ER C O M P E N S A TIO N A N D B E N E F ITS TR A IN IN G M A N A G E R

MANAGER

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Department of Management Sciences
10: VARIATIONS

• Shared services
• Outsourced services
• Generalists-specialists
• Globalized

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Department of Management Sciences
 BACK TO SQUARE ONE
• Major HR functions are…...
– Training
– Maintenance
– Motivation
– Staffing

• Which one interests you most?

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Department of Management Sciences
FORTUNATELY…..

• We study them ALL in

this course!

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Department of Management Sciences
Exhibit 2-5: Sample HRM Organizational Chart, Sample,
Activities, and Selected Salaries

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Department of Management Sciences
Thank You
Dr. Malik Faisal Azeem

Department of Management Sciences