CHAPTER 2

Fundamentals of HRM

DeCenzo and Robbins HRM 7th

Edition 1
WHAT DO YOU KNOW
ABOUT HRM?
 WHO?
 WHAT?
 WHERE?
 WHEN?
 WHY?

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1: MANAGEMENT
ESSENTIAL FUNCTIONS
 Plan
 Organize
 Lead
 Control

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2: IMPORTANCE OF HRM
 Complexity
 Change
 Strategy vs
Representation
 Certification

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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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2: STRATEGY AND
REPRESENTATION
 Competitive
advantage
 Proactive
 Culture
 Performance systems
 Recruiting
 Training
 Retention
DeCenzo and Robbins HRM 7th
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2: HRM CERTIFICATION
 Society for Human
Resource
Management
 Human Resource
Certification Institute

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3: HRM DEFINITION
 ARE ANY OF YOU
WONDERING WHY
YOU ARE IN THIS
CLASS….

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3: 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?)
DeCenzo and Robbins HRM 7th
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3: STAFFING (GET)
 Strategic human
resource planning
 Recruiting
 Selection

 See Exhibit 2-1

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Exhibit 2-1: Human Resource Management: Primary Activities

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3: TRAINING AND
DEVELOPMENT (PREPARE)
 Orientation
 Training
 Development
 Employee
 Career
 Organization

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3: MOTIVATION
(STIMULATE)
 Job design
 Performance
appraisals
 Rewards and
compensation
 Employee benefits

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3: MAINTENANCE (KEEP)
 Health and safety
 Communications
 Employee relations

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4: MAJOR EXTERNAL
INFLUENCES ON HRM
 Dynamic environment
 Government
legislation
 Labor unions
 Current management
practices

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4: REMEMBER CHAPTER
1?
 That chapter dealt
with the dynamic
environment of HRM

 Write down as many

topics from chapter 1
as you can
remember...
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4: CHAPTER 1 TOPICS
WERE….
 Globalization
 Diversity
 Changing skill
requirements
 Continuous
improvement
 Work process
engineering
 Decentralized work sites
 Employee involvement
 (Did I leave any out?)

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DeCenzo and Robbins HRM 7th
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CHAPTER 1 TOPICS:
 1: Global village
 2: Technology
 3: Workforce composition changes
 4: Workforce composition
 5: Changing skill requirements
 6: Quality and continuous improvement
 7: Work process engineering
 8: Contingent workforce
 9: Decentralized work sites
 10: Employee involvement
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4: 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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5: MANAGEMENT
THOUGHT
 Frederick Taylor
 Hugo Munsterberg
 Elton Mayo
 W. Edward Demming
 Peter Drucker
 Tom Peters
 Mary Parker Follett

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Cont…

 In 1909, Taylor published The Principles of Scientific Management. In this book, he suggested that
productivity would increase if jobs were optimized and simplified. He also proposed matching a
worker to a particular job that suited the person's skill level and then training the worker to do that
job in a specific way.
 Hugo Münsterberg was a German-American psychologist. He was one of the pioneers in applied
psychology, extending his research and theories to industrial/organizational, legal, medical, clinical,
educational and business settings.
 Mayo's management theory states that employees are motivated far more by relational factors such
as attention and camaraderie than by monetary rewards or environmental factors, such as lighting,
humidity and more.
 William Edwards Deming (1900-1993) is widely acknowledged as the leading management thinker in
the field of quality. He was a statistician and business consultant whose methods helped hasten
Japan's recovery after the Second World War and beyond.
 Peter Drucker (1909-2005) was one of the most widely-known and influential thinkers on
management, whose work continues to be used by managers worldwide.
 Tom Peters believes that the mindset as an owner, or entrepreneur, should allow creativity to flow
through the organization and that you must take certain risks to be successful.
 Mary Parker Follett: Leadership is not defined by the exercise of power but by the capacity to
increase the sense of power among those led,” Follett famously said. “The most essential work of
the leader is to create more leaders.”
DeCenzo and Robbins HRM 7th
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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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7: TRAINING AND
DEVELOPMENT DOES
 FOCUS TIME
 Employee training YOU NOW
 Employee development ? ?
 Career development ? ?
 Organization development ? ?

• See Exhibit 2-3

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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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8: MOTIVATION GOAL
 Competent and
adapted employees
 With up-to-date skills,
knowledge, abilities
 Exerting high energy
levels

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8: MAJOR MOTIVATORS
 Maslow
 McGregregor
 Herzberg
 McClelland
 Adams
 Vroom

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Maslow

 Physiological Needs: These are the most basic needs necessary for survival, such as air, water,
food, shelter, sleep, and other bodily requirements. These needs must be fulfilled before an
individual can move on to higher-level needs.
 Safety Needs: Once physiological needs are met, individuals seek safety and security. This
includes personal security, financial security, health and well-being, and protection from physical
harm or danger.
 Love and Belongingness Needs: Once safety needs are fulfilled, individuals have a need for
social interaction, love, and a sense of belonging. This includes the need for friendships, intimate
relationships, and a supportive family or community.
 Esteem Needs: Once the need for love and belongingness is satisfied, individuals strive for self-esteem
and the recognition of others. This includes the need for self-confidence, achievement, respect from
others, and status.
 Self-Actualization Needs: At the top of the hierarchy are the self-actualization needs, which represent the
highest level of human potential. Self-actualization refers to fulfilling one's unique potential, pursuing
personal growth, and becoming the best version of oneself. It involves self-awareness, personal
development, creativity, and a sense of purpose.

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McGregregor
Theory X and Y
 Theory X: Theory X represents a negative view of human nature and assumes that
individuals are inherently lazy, dislike work, and lack motivation. According to this
theory, people need to be closely monitored, controlled, and coerced to achieve
organizational goals. It emphasizes external rewards, punishment, and strict
hierarchical structures as methods to motivate employees.
 Theory Y: Theory Y, in contrast, reflects a positive view of human nature and assumes
that individuals are self-motivated, responsible, and capable of self-direction. This
theory suggests that employees can be intrinsically motivated and seek out challenges
and opportunities for personal growth. It emphasizes participatory management,
empowerment, and a supportive work environment to enhance employee motivation
and engagement.

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Herzberg

 Hygiene Factors: Hygiene factors, also referred to as extrinsic factors, are related
to the work environment and job context. These factors do not directly lead to job
satisfaction but can prevent job dissatisfaction if they are adequate. Examples of
hygiene factors include salary and benefits, job security, working conditions,
company policies, interpersonal relationships, and the organizational structure.
When hygiene factors are insufficient or perceived negatively, they can result in job
dissatisfaction.
 Motivational Factors: Motivational factors, also known as intrinsic factors, are
directly related to the content of the work and the job itself. These factors
contribute to job satisfaction and the motivation to perform at a high level.
Examples of motivational factors include challenging work, recognition,
opportunities for growth and advancement, a sense of achievement, and the
opportunity to take on meaningful responsibilities. When employees experience
these motivational factors, they are more likely to be satisfied and motivated in
their work.

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McClelland
 Need for Achievement (nAch): Individuals with a high need for achievement are motivated
by the desire for personal accomplishment, the pursuit of challenging goals, and the need for
feedback on their performance. They strive for success, take calculated risks, and prefer
tasks that offer a moderate level of difficulty. They are driven by the satisfaction derived
from mastering tasks and accomplishing goals.
 Need for Affiliation (nAff): Individuals with a high need for affiliation are motivated by the
desire for social interaction, harmonious relationships, and a sense of belonging. They seek
acceptance, approval, and positive relationships with others. They enjoy collaborating, being
part of a team, and developing interpersonal connections. Recognition and support from
others are important for their motivation and well-being.
 Need for Power (nPower): Individuals with a high need for power are motivated by the
desire to influence, control, and have an impact on others. They seek positions of authority,
enjoy competition, and strive for recognition and prestige. Their motivation stems from
having control over resources, making decisions, and leading others. They can be motivated
by either personal power (individual-focused) or social power (impact on the group or
organization).
McClelland's theory suggests that individuals have a dominant need, which influences their
behavior and motivates them in the workplace. The relative strength of each need varies
from person to person and can be influenced by cultural and situational factors.

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Adams

According to Adams' Equity Theory, individuals evaluate their inputs (such as effort, time,
skills) and outcomes (such as pay, recognition, job satisfaction) in relation to the inputs
and outcomes of others. The theory suggests that people strive for a state of equity or
fairness, where the ratio of their inputs to outcomes is similar to that of their comparison
group (such as coworkers or peers).
The theory highlights three key components:
Inputs: These refer to the contributions or investments made by individuals in their work,
such as effort, skills, experience, time, and commitment.
Outcomes: These represent the rewards or outcomes individuals receive from their work,
such as pay, promotions, recognition, job security, and job satisfaction.
Comparison: Individuals make social comparisons by comparing their inputs and outcomes
with those of others. These comparisons can be made with both people in similar positions
(horizontal comparison) and with individuals in different positions (vertical comparison).

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Cont…
Based on these components, individuals can perceive one of three conditions:
Equity: Individuals perceive equity when their ratio of inputs to outcomes is similar
to that of their comparison group. They feel that they are being treated fairly and
experience a sense of satisfaction and motivation.
Underpayment Inequity: Individuals perceive underpayment inequity when they
perceive that their inputs outweigh their outcomes in comparison to others. They feel
under-rewarded and may experience feelings of frustration, demotivation, and a
desire to restore equity.
Overpayment Inequity: Individuals perceive overpayment inequity when they
perceive that their outcomes outweigh their inputs in comparison to others. They
may feel a sense of guilt or indebtedness and may be motivated to restore equity by
increasing their inputs or reducing their outcomes.
Adams' Equity Theory suggests that individuals strive for fairness and equity in their
work situations. When employees perceive inequity, it can lead to various behavioral
responses, such as seeking changes in compensation, altering their level of effort, or
even leaving the organization.

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Vroom

Vroom's Expectancy Theory consists of three key components:

Expectancy (Effort-Performance Expectation): Expectancy refers to an individual's belief that
their effort will lead to a certain level of performance. It represents the perceived probability
that increased effort will result in improved performance. If an individual believes that their
effort will likely lead to successful performance, they are more motivated to exert high effort.
Instrumentality (Performance-Reward Expectation): Instrumentality refers to an individual's
belief that successful performance will lead to desired outcomes or rewards. It represents the
perceived link between performance and the attainment of outcomes. If an individual believes
that performing well will lead to valued rewards such as promotions, pay raises, recognition, or
other incentives, they are more motivated to perform at a high level.
Valence (Value or Attractiveness of Outcomes): Valence refers to the value or attractiveness
that an individual places on the outcomes or rewards associated with performance. It
represents the personal importance or desirability of the outcomes. Different individuals may
have different preferences and values for specific outcomes. If an individual perceives the
outcomes as valuable and desirable, they are more motivated to pursue them.
Vroom's Expectancy Theory suggests that motivation is a function of the interaction of these
three factors. Specifically, motivation is high when individuals believe that their effort will lead
to successful performance (expectancy), that successful performance will lead to desired
outcomes (instrumentality), and that those outcomes are desirable (valence).

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8: MAINTENANCE
 Health
 Safety
 Communications
 Employee assistance
programs
 Environment where
employee voices are
heard

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9: HR DEPARTMENTS

H R D IV IS IO N

VP HR

E M P LO YM ENT M A NA G E R 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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9: MATCH UP ROLES AND
DEPARTMENTS
 ROLES  DEPARTMENTS

 Trainer  EMPLOYMENT
 HRIS analysis  TRAINING
 Recruiter  COMP&BENEFITS
 Safety  EMPLOYEE
 ER (Employee RELATIONS
Relations)
 Newsletter
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10: VARIATIONS

 Shared services
 Outsourced services
 Generalists-specialists
 Globalized

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QUICK: REVIEW
CHAPTER 2
 Remember these terms?
 HR Service center
 ADA (Americans with
Disabilities Act of
1990)
 McGregor
 Demming
 Plan, Organize, Lead,
Control
 Human Resource
Certification Institute

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BACK TO SQUARE ONE

 Major HR functions are…...

 Training
 Maintenance
 Motivation
 Staffing

 Which one interests you most?

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FORTUNATE US…..
 We study them ALL in
this course!

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PREVIEW: CHAPTER 3

 Guess what the topic is?

 (a) Civil Rights Act
 (b) Americans with Disabilities Act
 (c) Family and Medical Leave Act
 (d) Employee Retirement and Security Act
 NO, it’s not environmental influences
again…

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Exhibit 2-2: Relevant Laws Affecting HRM Practices

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Exhibit 2-4: Key Elements of Classic Motivation Theories

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Exhibit 2-5: Sample HRM Organizational Chart, Sample,
Activities, and Selected Salaries

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