1. HUMAN RESOURCE MANAGEMENT
1.1. ➔ Definition: The effective management of the formal relationship between employees and employers
1.2. ➔ As business’ grow more formal human resource management (HRM) policies and practices need to be established
1.3. ➔ In a small business this is usually the owner
1.4. ➔ They are also responsible for making sure the business gets the best out of its employees and employees have the right skills to carry out their roles
1.5. ➔ It is the person/people that are responsible for maintaining the relationship between employees and employers
1.6. WHAT A HRM CANT DO
1.6.1. ➔ They can’t tell other departments about what work needs to be done
1.6.2. *Employees are the biggest expense to the business as well as being the most valuable asset*
1.6.3. ➔ HRM is a part of a divisional structure
1.6.4. ➔ HRM is a functional area of the business and needs to consider external and internal influences this will help impact the business strategy that is implemented in the business
1.6.5. ➔ They have the authority to advise not to direct other line managers
2. MANAGEMENT BY OBJECTIVES
2.1. ➔ The process of setting goals using SMART principles which relate to the employees key areas of responsibility
2.2. ➔ MBO was established by Peter Drucker in 1954 and it fits in with the goal setting motivation theory and can be used as a way to conduct performance appraisals
2.3. ➔ Management by objectives creates a sense of direction and provides a measure to assess an employee's work performance
2.4. ➔ This is because the individual employee objectives should link to the team department or business as a whole
2.5. ADOPTING THE MBO THEORY
2.5.1. : ➔ Requires managers and staff at all levels to set objectives relevant to their area of responsibility and have their performance (outcomes) measure to these
2.5.2. ➔ It can also help with improved workers attendance as they enjoy theory job
2.5.3. ➔ It can help improve productivity
2.5.4. ➔ It should make employees more engaged with their work and ownership as they can directly impact the businesses success
2.5.5. ➔ It helps all members of the organization achieve personal objectives and business objectives
3. WHAT IS MOTIVATION?
3.1. ➔ It’s what drives a person to do things a certain way or to achieve a certain goal
3.2. ➔ The individual internal process that directs, energises and sustains a person's behaviour
4. MOTIVATION STRATEGIES: INCLUDING PERFORMANCE RELATED PAY, CAREER ADVANCEMENT, INVESTMENT IN TRAINING AND SUPPORT AND SANCTION
4.1. PAY INCREASES
4.1.1. ➔ When an employee starts at a job their rate of pay is either negotiated in an employment contract or set by an award
4.1.2. ➔ After a period of time an employer may offer pay rises to people who work hard and add value to the business 12
4.2. BONUSES
4.2.1. ➔ One off payment to an employee or group of employees for achieving a particular target or special effort, it’s a one off
4.3. COMMISIONS
4.3.1. ➔ Is an amount paid for accomplishing its sale, it’s generally a fixed % of the price *Reward: An award is legally binding agreement that sets out minimum wages and conditions for a group of employees in a given industry*
4.4. SHAREPLANS
4.4.1. ➔ A registered company both public and private can offer shares of its business to its staff
4.4.2. ➔ If the business is successful profits is paid as a dividend to its shareholders so employees will gain more income from profits
4.5. PROFIT SHARING
4.5.1. ➔ Instead of giving employees shares, a company can offer a % of profits to its employees with the overall goal or increasing profit so everyone can share in it
4.6. GAINS SHARING
4.6.1. ➔ Is the method of rewarding employees for making suggestions that improve productivity in the business. The savings that are achieved are given back to the employees
4.7. CAREER ADVANCEMENT
4.7.1. ➔ Promoting people to more senior positions that give them more motivation/responsibility and authority- this level of promotion can motivate some employees
4.8. SUPPORT AND SANCTION
4.8.1. ➔ People do the work because they fear for the results if you don’t
4.9. INVESTMENT IN TRAINING
4.9.1. ➔ Employees gain skills and knowledge via training
5. TRAINING OPTIONS INCLUDING ON AND OFF THE JOB TRAINING + THE ADVANTAGES AND DISADVANTAGES OF BOTH
6. THE RELATIONSHIP BETWEEN MANAGING EMPLOYEES AND ACHIEVING BUSINESS OBJECTIVES
6.1. ➔ The states, measurable targets of what a business wants to achieve
6.2. ➔ All business objectives must consider stakeholders in the business and how the objective will affect/influence them
7. THE IMPORTANCE OF EMPLOYEES
7.1. ➔ Employees are a key stakeholder in achieving business objectives
7.2. ➔ They play a key role in success
7.3. ➔ The are essentially required in the production process, manufacturing a product or providing a service
8. THE KEY PRINCIPLES OF THE FOLLOWING THEORIES OF MOTIVATION: HIERARCHY OF NEEDS (MASLOW), GOAL SETTING THEORY (LOCKE AND LATHAM), AND THE 4 DRIVE THEORY (LAWRENCE AND NOHRIA)
8.1. HIERARCHY OF NEEDS ( MASLOW)
8.1.1. Abraham Maslow believed that all people had a need to be satisfied and they will work towards satisfying that need. He developed maslow's hierarchy of needs, arranging in order of importance, this hierarchy of needs is a sequence of human needs in order of importance and that you can’t move up between needs unless the basic need has been satisfied 10 ➔ His theory is important because it suggests businesses have to create workplaces that attempt to satisfy all the needs of the employee if they don’t employees will become disillusioned and choose to leave or demotivated
8.1.2. STEPS
8.1.2.1. Self actualisation- Achieving one’s full potential, including creative activities
8.1.2.2. Esteem needs- Prestige and feeling of accomplishment Belongness and love needs- Intimate relationships and friends
8.1.2.3. Safety needs- Security and safety
8.1.2.4. Physiological needs- Food, water, warmth and rest
8.2. ROLES OF A HUMAN RESOURCE MANAGER
8.2.1. ➔ Recruitment and selection process
8.2.2. ➔ Human resource manager can also be known as staff managers- as they can offer advice about policies and practices and procedures, they can also assists employees, other managers (functional managers) and the business as a whole
8.2.3. ➔ Evaluation policies
8.2.4. ➔ Performance management
8.2.5. ➔ OH&S guidelines
8.3. GOAL SETTING THEORY (LOCKE AND LATHAM)
8.3.1. ➔ Based on the notion that employees are more likely to be motivated if they are able to strive for specific goals and can be rewarded for achieving those goals
8.3.2. ➔ The employees must be committed to meet the challenge and that if helps if the employee's gets constant feedback so that if required clarification and adjustment of the goals can take place so the employee does not lose motivation
8.3.3. ➔ In order to motivate the goal must be specific, clear and provide a challenge to the employees
8.3.4. PRINCIPALS
8.3.4.1. Feedback: many goals will take a long time to achieve so ongoing feedback can help keep the employee working towards the goal Task complexity: if tasks lack complexity and the employee sees it as easy there is unlikely to be a high level of motivation
8.3.4.2. Commitment: an employee that is committed to the achievement of the goal will be motivated to work towards it. This can be achieved by allowing the employees to be involved in the setting of goals
8.3.4.3. Challenge: Locke and Latham found a direct relationship between how challenging a goal is and how motivated the employee is. The more challenging the goal the more motivation is created
8.3.4.4. Clarity: goals needed to be clear and specific so the employee knows exactly what they need to achieve. This allows them to focus on achieving a specific goal
8.3.5. BENEFITS
8.3.5.1. ➔ Improvement in team cohesion and collaboration
8.3.5.2. ➔ Employees become energized and empowered
8.3.5.3. ➔ Companies ensure that all employees have closely aligned goals, have a high level of financial success
8.4. The drive to bond: We all need to find, connect and seek others whether it is family, peer groups or being part of a business, association and our nation. Motivation receives an enormous boost when employees feel proud to belong to a business, but this plummets if the business does something to betray this feeling of pride
8.4.1. The drive to defend: This stems from our natural instinct to defend ourselves, family and friends, property and our accomplishment, beliefs and ideas against external threats (flight-fight response). This drive directly links to people’s fear and resistance to change
8.5. FOUR DRIVE THEORY (LAWRENCE AND NOHRIA) ➔ Basic motivation needs
8.5.1. The drive to acquire: This can be regarded as both a basic and complex need. For instance basic as it relates to an individual gathering the necessities for survival (clothing, housing and money). Complex when it relates to the acquiring of status, accomplishment and power (private office, power)
8.5.2. The drive to comprehend: People need to make sense of the world around them and contribute to it. This directly links to why learning and work both engage and energise employees
9. ADVANTAGES AND DISADVANTAGES OF MOTIVATION STRATEGIES AND THERE AFFECT ON SHORT TERM AND LONG TERM EMPLOYEE MOTIVATION
10. PERFORMANCE MANAGEMENT STRATEGIES TO ACHIEVE BOT BUSINESS AND EMPLOYEE OBJECTIVES, INCLUDING MANAGEMENT BY OBJECTIVES, APPRAISALS, SELF EVALUATION AND EMPLOYEE OBSERVATION
10.1. EMPLOYEE OBSERVATION
10.1.1. ➔ The aim is to get feedback from a variety of different parties to arrive at a picture of a past and current performance
10.1.2. ➔ Helps to evaluate leadership teamwork and interpersonal skills
10.1.3. ➔ Focus on how the employee works as a part of the team
10.1.4. ➔ Helps identify strength and weaknesses and gives a broad overview of the employee's performance
10.1.5. ➔ About 8-12 employees complete confidential evaluation forms and the employee under review also completes self evaluation
10.1.6. ➔ This is often used to evaluate the performance of managers and supervisors by getting input from their subordinates fellow supervisors and superiors
10.1.7. ➔ 360 degree feedback
10.2. SELF EVALUATION
10.2.1. ➔ This involved employees carrying out a process of self assessment based on an agreed set criteria
10.2.2. ➔ What initiatives can i undertake to be a better employee in the future
10.2.3. ➔ What could i have done better?
10.2.4. ➔ What are my weaknesses? How do i overcome them?
10.2.5. ➔ What are my strengths?
10.3. MANAGEMENT BY OBJECTIVES
10.3.1. ➔ Process where management and employees agree on a set of goals for each employee when the individual goals contribute to the goals of the business as a whole
10.3.2. ➔ Managers use SMART goals to achieve these objectives
10.3.3. ➔ Performance appraisals once the goals have been achieved
10.3.4. ➔ Measuring progress to achieve goals
10.4. APPRAISALS
10.4.1. ➔ Measure how well an employee has performed with their jobs, provides feedback to employees and establishes plans to improve performance
10.4.2. ➔ Definition: a performance appraisal is the formal assessment of how efficient and effective an employee is performing in their role in the business
10.4.3. ➔ It reflects on past performance on the business and the employees performance