Business management lecture 3

Human resource management

Refers to the management of people in organisations, with the aim to maximise employee contributions in order to achieve optimal productivity and effectiveness.

Areas of activities of HRM

HR planning, design of organisation, selection and staffing, training and development, compensation and benefits, employee assistance, union/labour relations, personnel research and information systems

Societal objectives

Ensure that the organisation becomes socially responsible. The failure of organisations to use their resources responsibly.

Organisational objectives

HRM assists the organisational effectiveness by working with other departments towards the same goals.

Functional objectives

It maintains the rights contributions at an appropriate level in regards to budget and time.

Personnel objectives

It assists employees in achieving their personal goals in relation to the organisations success.

Role of a human resource manager

Develop a good corporate culture, act as an internal agent of change, initiate change, actively engage in company strategy formulation, diagnose problems and find solutions.

Intrinsic motivation

Doing something because it’s personally rewarding or enjoyable. You do it because you find it interesting, satisfying, or fulfilling.

Extrinsic motivation

Doing something for external rewards or to avoid punishment. You do it to earn money, praise, or avoid negative consequences.

7 steps to improve workers productivity (Frederick Taylor)

1. select right workers 2. observe them 3. record how long the task given takes 4. identify the quickest method, don't allow changes 5. train all workers to do the same 6. supervise workers 7. pay workers based on their results

Maslow’s hierarchy of needs

A theory of psychological health predicated on fulfilling innate human needs in priority.

Self actualisation needs (hierarchy of needs)

Morality, creativity, spontaneity, acceptance, experience

Self esteem needs (hierarchy of needs)

Confidence, achievements, respect of others, need for individuality

Love and belongingness needs (hierarchy of needs)

Friendship, family, intimacy, connections

Safety and security needs (hierarchy of needs)

Health, employment, poverty, family and stability

Physiological needs(hierarchy of needs)

Air, food, water, shelter, clothing, sleep

Theory X and Theory Y (Douglas McGregor)

Theory proposes that there are not two types of workers but employees behave according to the attitudes of the managers they work for.

Manager X (Douglas McGregor)

View their employees as lazy and irresponsible. The employees need to be controlled and made to work.

Manager Y (Douglas McGregor)

View their workers as creative and responsible.

Two factor theory (Frederick Herzberg)

1. Those factors that led employees to have very good feelings about their jobs. 2. Those factors that led them to having negative feelings about their job.

Job satisfaction resulted from

Achievement, recognition for achievement, the work itself, responsibility, advancement

Job dissatisfaction resulted from

Company policy, supervision, salary, relationship with colleagues, working conditions