Business Sem 1 Unit 3 Sac #2 Flashcards
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Define HRM (Human Resource Management)
The area of business that is responsible for managing the relationship between the employees and the business. The responsibility of recruiting, managing and terminating employees
3 ways that HRM helps the business
- Provide extensive training for employees in product knowledge and customer service
- Rewards and recognition programs
- Aim to motivate employees by creating a collaborative environment
How does HRM help meet business objectives
Ensuring employees are performing at a high level by :
- Ensuring employees are in the right roles
- Training employees to improve skills and abilities
- Monitoring performance and providing feedback
- Motivating employees
- Ensures the employees can perform at their best to achieve the objectives
What are the steps in the Termination Phase and what do they do?
Termination Management: This can be an involuntary or voluntary departure. Roles can be redundant (no longer exists) or dismissed (unsatisfactory behaviour). Termination needs to be managed, such as considering entitlements that the employee is entitled to, or supported in transitioning jobs.
3 theories of motivation
Maslow theory - Need-based theory - works on the principle that the satisfaction of needs leads to motivation
Locke and Latham’s theory - Goal setting theory - works on the principle that the achievement of goals gives a sense of satisfaction that is motivational
Lawrence and Nohria theory - Contingency theory - attempts to explain and understand the process by which motivation occur
Hierarchy of needs in Maslow’s Theory (Lowest to highest)
- Physiological needs: Basic needs like food, water, and shelter.
- Safety: Security and protection(emotional and physical)
- Love/Belonging: Social connections and relationships.
- Esteem: Self-esteem and recognition.
- Self-actualization: Fulfillment of personal potential(reaching full potential)
How does Maslow’s Theory relate to HRM
- Physiological needs: Giving employees a work environment that is safe, paid fairly, and a job
- Safety and security: Policies that protect employees, and the workplace follows the OHS legislation for healthy work conditions. Superannuation and insurance
- Social needs: Making friends, being provided with organised activities( parties for birthday, meals, and activities)
- Self-esteem: The business grants job titles, promotions, merit rewards(bonus), and performance ratings.
- Self-actualisation: Challenging work that allows employees to be creative , making decisions together, and providing opportunities for personal growth and advancements in the business.
Define motivation and its benefits
The behaviour driving an individual to pursue and achieve their goals
- Improved productivity
- Improved employee retention rate
- Lower absent rate
- Increased business reputation
- Attracts employees
- Less conflicts
5 core principles in Locke and Latham’s Goal Setting Theory
Clarity: Making goals absolute and measurable, as well as simple and clear on what needs to be done.
Challenge: The goal should push an employee, but should still be achievable. They must also be related to the objectives of a business.
Commitment: important in ensuring that employees will actively pursue the achievement of a goal. An employee is more likely to be motivated with a task where they have had some sort of input. The greater the involvement of the employee, the more likely it is that they will commit to the goal.
Feedback: This provides opportunities for recognition of the effort put into a goal, as well as any changes to the goal if necessary. It ensures expectations are clear and can be used to track progress. Feedback can be informal for smaller comments, or formal for more complex goals or communication of important details.
Task Complexity: Goals should be challenging enough to motivate employees, but the level of complexity isn’t overwhelming. Additional training may be required to assist employees to complete the task and develop their skill sets.
The 4 drives in the Four Drive Theory (Larence and Nohria)
Drive to Acquire: The desire to own material goods, or non-materials such as status, influence, power and achievements. Managers can apply this in the workplace by ensuring levels of remuneration are above industry average or competitors, recognising good performance with financial rewards and establishing high levels of performance as the norm or expectation.
Drive to Bond: The need to form relationships with individuals or groups, and is expressed as the sense of belonging in a business. This can be applied by ensuring managers are “people-oriented”, developing a corporate culture and the support of friendships between employees and managers.
Drive to Learn: The desire to satisfy our curiosity and learn new skills by challenging ourselves with interesting experiences. It can provide motivation by making employees feel as if they are gaining valuable experience and skills, having interesting tasks and opportunities to learn new skills.
Drive to Defend: Desire to remove any threats to our safety and protect our belongings. This is demonstrated through ensuring that a work environment is safe with high-levels of trust between employees. The workplace should be welcoming and supportive where intimidation isn’t used as a management technique, and that all employees are treated fairly. It should be an environment where staff are encouraged to speak up about concerns.
Advantages and Disadvantages of Maslow’s Theory
Advs
- Allows management to develop an understanding of individual needs
- Allows management to be aware of an employee’s stage of development and how to further motivate them
- Easy to understand the theory and is applicable
Disadvs
- It’s only a theory, with no evidence backing up the stages and they don’t apply to all individuals
- Managers may struggle to identify which level an employee is at
- Every individual is at different stages
Advantages and Disadvantages of Locke and Latham - Goal Setting Theory
Advs
- Setting goals that are clear and challenging but not overwhelming will motivate employees and improve their performance
- The theory is backed by studies that support it
- Staff will perform at a higher standard
- Works on the relationship between managers and employees
Disadvs
- Goals that are too vague can lead to poor performance and can become demotivating
- Staff may focus so much on challenging goals that they ignore other aspects of their role
- GST only focuses on setting goals to improve performance, but there are other factors that contribute to it
- Failing to meet a goal could affect an employee’s confidence
Advantages and Disadvantages of Lawrence and Nohria’s Four Drive Theory
Advs
- Drives work independently which allows managers and employees to be flexible
- Adaptable to complicated environments or situations
- Four drives convert into effort that improves performance
Disadvs
- Applying some aspects may involve competition between employees, which can lead to things such as lack of cooperation or information sharing.
There may be other drives for motivation other then these 4
What are intrinsic and extrinsic rewards
Extrinsic - physical/tangible reward given for an achievement. It can be financial or in the form of a gift and is externally given to the employee.
Intrinsic - intangible and comes from within an employee in the form of satisfaction or fulfilment.
Similarities and Differences between Maslow & 4 Drive - Lawrence and Nohria
Similarities
- Both are there to motivate employees
- Feel a sense of belonging
- employees drive to move up in status and gain power
Differences
- Maslow’s needs must be met in sequential order while four drive theory may not be in a particular order(general)
- Fulfil only one at a time
Similarities and Differences between Maslow & Locke and Latham
Similarities
- Recognise that personal gain is a factor that can motivate employees. Esteem needs can be satisfied by providing jobs with higher status for employees
- Recognise the importance of feedback from management.
- Good bond in business
Differences
- Maslow- fulfil one need at a time
Locke and Latham-all principles incorporated simultaneously(at same time) to motivate an employee
- Maslow- manager can apply the hierarchy of needs to employee by observing
Locke and latham- employee input to set goals together
Similarities and Differences between Lawrence and Nohria & Locke and Latham
Similarities
- Motivate employees to achieve the business objective
- Multiple factors can motivate employees
- Keep good bonds in business
Differences
- Locke and Latham- employee input
Lawrence and Nohria-manager decision
- Locke and Latham- address each employee individually
The different types of Motivation strategies
- Performance-related pay
- Career Advancement
- Investment in training
- Support training
- Support strategies
- Sanction Strategies
How does Performance-related pay improve motivation?
- Rewards employees through rewards/incentives/bonuses when they meet or exceed any goals or expectations.
- The employee sets targets and is paid according to the level of achievement
- Employee is motivated to work harder towards set targets to get ian ncrease in their pay
the short and long-term Performance-related pay
Short-term
- one-off payment
- Employees driven to work hard to be paid more in the short term
- Demotivating if goals are too challenging
Long-term
- Can lose effectiveness as employees become motivated by other factors
- Methods such as share plans may offer long term motivation
Advantages and Disadvantages of Performance-related pay
Advs
- Retains valuable employees
- Promoted employees are more likely to contribute as well as become more productive and committed to the business
- Satisfies employees who desire extra responsibility and a sense of achievement.
Disadvs
- There is a limited number of promotion positions, which may create rivalry and conflict
- Promotion of an employee may cause resentment among other employees
- Employees may be promoted to a position that is beyond their capability
How does Investment in Training improve motivation?
- By teaching employees new skills to improve their performance and productivity and can encourage employees to achieve business objectives as they feel skilled enough.
- By providing employees with skills, there is higher job satisfaction and promotes short and long-term motivation.
Advantages and Disadvantages of Investment in Training
Advs
- Shows that business cares about employees contribution and skills
- May improve staff retention
- Employees feel more confident and are more productive
Disadvs
- Training may be wasted if its not required
- Training may be expensive
- The business may pay for an employees training but they may leave the business
- If other aspects of the business aren’t efficient, training won’t motivate
How does Support Strategies improve motivation?
The assistance or services provided by the business to help employees cope with any issues that affect their work performance (e.g. counseling and mentoring). This provides a supportive environment for staff members.
Advantages and Disadvantages of Support Strategies
Advs
- Many forms of support can be offered with little to no cost
- Can influence employee attitudes and development
- Encourages staff to be motivated and confident
Disadvs
- May be difficult to find reason to support and encourage some employees
- Staff may become dependent on the support
- Business has to have a positive corporate culture
How does Sanction Strategies help improve motivation?
Penalty or forms of discipline imposed on an employee, especially when they do something wrong in the workplace. They may range from verbal warnings, to change in duties or demotion. In serious cases they might terminate the employee
Advantages and Disadvantages of Sanction Strategies
Advs
- Sanctions for poor behavior will motivate staff to improve performance
- Will stop inappropriate behavior from employees
Disadvs
- Excessive sanctions reduces sense of belonging, and in return lowers staff motivation
- May cause resentment between employees
- Tends to be a short-term motivation
