ICS 200 Week 6 Notes
ICS 200 Week 6 Notes ICS 200
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This 22 page Class Notes was uploaded by Tatum Notetaker on Tuesday October 18, 2016. The Class Notes belongs to ICS 200 at DePaul University taught by Paul Kessenich in Summer 2016. Since its upload, it has received 6 views. For similar materials see Introduction to Business in Business at DePaul University.
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Date Created: 10/18/16
Notes 10/18 CHAPTER 10 Intrinsic Rewards o Intrinsic rewards: personal satisfaction you feel when you perform well and complete goals o Examples: Pride in your performance Sense of achievement Extrinsic Rewards o Extrinsic rewards: something given as a recognition of good work o Examples: Pay raises Promotions Awards Taylor’s Scientific Management o Scientific Management: studying workers to find the most efficient ways of doing things and then teaching people those techniques o Three key elements to increase productivity Time Methods of work Rules of work o Taylor’s four key principles Study how a job is performed Gather time & motion information Check different methods Codify the best method into rules Choose workers whose skill matches the rules Establish a fair level of performance and pay o Time and Motion Studies Time-Motion Studies: studies of which tasks must be performed to complete a job and the time needed to do each task Led to the development of the Principle of Motion Economy Defined as the fact that every job can be broken down into a series of elementary motions Developed by Frank and Lilian Gilbreth o Taylor and UPS UPS drivers work under strict rules and work requirements How to get out of their trucks - right foot first How fast to walk – 3ft per second How to hold their keys – teeth up, third finger Hawthorne Studies o Researchers studied worker efficiency under different levels of light o Productivity increased regardless of light condition o Researchers decided it was a human or psychological factor at play 2 o Hawthorne Effect: people act differently when they know they are being studied Maslow’s Theory of Motivation o Hierarchy of Needs: theory of motivation based on unmet human needs from basic physiological needs to safety, social, and esteem needs to self- actualization needs o Needs that have already been met do not motivate o If a need is filled, another higher-level need emerges o Physiological needs Safety needs Social needs o Esteem needs Self-Actualization Herzberg’s Motivating Factors o Herzberg’s research centered on two questions What factors controlled by managers are most effective in increasing worker motivation? How do workers rank job-related factors in order of importance related to motivation? o Job Content Herzberg found job content factors were most important to workers – workers like to feel that they contribute to the company Motivators: job factors that cause employees to be productive and that give them satisfaction Work itself 3 Achievement Recognition Responsibility Growth and advancement o Job Environment Job environment factors maintained satisfaction, but did not motivate employees Hygiene Factors: job factors that can cause dissatisfaction if missing but that do not necessarily motivate employees if increased Company policy and administration Supervision Working conditions Interpersonal relations (co-workers) Salary, status, and job security Theory X and Theory Y o Douglas McGregor proposed managers had two different sets of assumptions concerning workers o Their attitudes about motivating workers were tied to these assumptions o Assumptions of Theory X Managers Workers dislike work and seek to avoid it Workers must be forced or threatened with punishment to get them to perform Workers prefer to be directed and avoid responsibility Primary motivators are fear and punishment 4 o Assumptions of Theory Y Managers People like work, it’s a part of life Workers seek goals to which they are committed Commitment to goals depends on perceived rewards People can use creativity to solve problems Intellectual capacity is only partially realized People are motivated by a variety of rewards Theory Z o William Ouchi researched cultural differences between the US (Type A) and Japan (Type J) o Type J committed to the organization and group o Type A focused on the individual o Theory Z is the hybrid approach of Types A and J o Assumptions Employee involvement is the key to increased productivity Employee control is implied and informal Employees prefer to share responsibility and decision making Employees perform better in environments that foster trust and cooperation Employees need guaranteed employment and will accept slow evaluations and promotions Goal-Setting Theory o Goal setting theory: setting ambitious but attainable goals can motivate workers and improve 5 performance if the goals are accepted, accompanied by feedback, and facilitated by organizational conditions o Applying the theory Management by Objectives (MBO): involves a cycle of discussion, review, and evaluation of objectives among top and middle-level managers, supervisors, and employees Managers formulate goals in cooperation with everyone in the organization Need to monitor results and reward achievement Expectancy theory in motivation o Expectancy theory: the amount of effort employees exert on a specific task depends on their expectations of the outcome o Employees ask Can I accomplish this task? What’s my reward? Is the reward worth the effort? o Expectations can vary from person to person Nadler and Lawler’s Modification o Researchers Nadler and Lawler modified expectancy theory and suggested five steps for managers Determine what rewards employees value Determine workers’ performance standard Make sure performance standards are attainable Tie rewards to performance 6 Be sure employees feel rewards are adequate Using Reinforcement Theory o Reinforcement theory: positive and negative reinforcers motivate a person to behave in certain ways o Positive reinforcement includes praise, pay increases, and recognition o Negative Reinforcement occurs when people work to escape punishment (reprimands, reduced pay, and layoff or firing) o Extinction is a way of trying to stop behavior by not responding to it Equity theory o Equity theory: employees try to maintain equity between inputs and outputs compared to others in similar positions o Workers often base perception of their outcomes on a specific person or group o Perceived inequities can lead to reduced quality and productivity, absenteeism, even resignation Enriching jobs o Job enrichment: a motivational strategy that emphasizes motivating the worker through the job itself o Based on Herzberg’s motivators such as - Responsibility Achievement Recognition o Key characteristics of work 7 Skill variety Task identity Task significance Autonomy Feedback o Types of Job enrichment Job enlargement: a job enrichment strategy that involves combining a series of tasks into one challenging and interesting assignment Job Rotation: a job enrichment strategy that involves moving employees from one job to another o Using Open Communication Create a culture that rewards listening Train managers to listen Use effective questioning techniques Remove barriers to open communication Ask employees what’s important to them When is social media too social? o Sites like facebook are banned in 20% of workplaces o Some argue that this is a bad idea because: It alienates younger employees It suggests businesses don’t trust employees It can make employees feel disengaged It takes away an element of relaxation Recognizing Good work 8 o Raises are not the only ways to recognize an employee’s performance o Can also include: Paid time off Flexible scheduling Work from home opportunities Paid child or elder care Stock options or profit sharing Company awards company events or teams Going up against the heavyweights o Sparta systems employees play video games during breaks o Bigcommerce offers boot camps with a trainer o Zoosk allows employees to bring dogs to work o Shift communications has recess Motivating Employees across the globe o Cultural differences make worker motivation a challenging task for global managers o High-Context cultures require relationships and group trust before performance o Low-Context cultures believe relationship building distracts from tasks o Beyond just knowing cross-cultural differences A better understanding of cultures helps managers increase customer satisfaction and loyalty It is more than just knowing other languages, it’s knowing what’s proper 9 IBM works closely with many different people before entering new markets Motivating Across Generations o Baby Boomers (1946 – 1964) Experienced great economic prosperity, job security, optimism about their future o Generation X (1965 – 1980) Raised in dual-career families, attended day care, feeling of insecurity about jobs Desire economic security but focus more on career security than job security Good motivators as managers due to emphasis on results rather than work hours Tend to be flexible and good at collaboration and consensus building Very effective at giving employee feedback and praise o Generation Y or Millennials (1980 – 1995) Raised by indulgent parents, used to many comforts like computers and cell phones Tend to be impatient, skeptical, blunt, and expressive Are tech-savvy and able to grasp new concepts Able to multi-task and are efficient Highlight a strong sense of commitment Place a high value on work-life balance Fun and stimulation are key job requirements o Generation Z (1996 – 2009) 10 Grew up post 9/11, in the wake of the Great Recession and amid many reports of school violence o Generation Alpha (after 2010) Communication across the generations o Baby boomers – prefer meetings and conference calls o Generation X – prefer email and will choose meetings only if there are no other options o Generation Y/Millennials – Prefer to use technology to communicate, particularly through social media CHAPTER 11 Human Resource Management o Human Resource Management (HRM): the process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals o HRM’s role has grown because of Increased recognition of employees as a resource Changes in law that rewrote old workplace practices Developing the firm’s ultimate resource o Service and high-tech manufacturing requires employees with highly technical job skills o Such workers are scarce, making recruiting and retention more important and more difficult 11 o The human resource job is now the job of all managers in an organization Challenges in finding high-level workers o A shortage of trained workers in key areas o Worker shortage in skilled trades o An increasing number of baby boomers who delay retirement o A declining economy with fewer full-time jobs o Expanding global markets with low-wage workers o Increasing benefit demands and benefit costs o A decreased sense of employee loyalty Civil Rights Act of 1964 o Title VII prohibits discrimination in hiring, firing, compensation, apprenticeships, training, terms, conditions or privileges of employment based on Race Religion Creed Sex Age National origin 1972 Equal Employment Opportunity Act o strengthened the Equal Employment Opportunity Commission (EEOC) o Gave EEOC the right to issue workplace guidelines for acceptable employer conduct o EEOC could mandate specific recordkeeping procedures 12 o EEOC was vested with the power of enforcement Controversial procedures of the EEOC o Affirmative Action: policy designed to “right past wrongs” by increasing opportunities for minorities and women o Reverse Discrimination: discriminating against members of a dominant or majority group usually as a result of policies designed to correct previous discrimination against minority r disadvantaged groups o This policy has been at the center of many debates and lawsuits Civil Rights act of 1991 o Amended Title VII and gave victims of discrimination the right to a jury trial and possible damages o Office of Federal Contract Compliance Programs (OFCCP) Ensures that employers doing business with the federal gov’t comply with the nondiscrimination and affirmative action laws Laws Protecting Employees with Disabilities o Americans with Disabilities Act of 1990 (ADA) Requires employers to give applicants with physical or mental disabilities the same consideration for employment as people without disabilities o Passage in 2008 of Americans with Disabilities Amendments Act expanded protection 13 o 2011 saw regulations that widen the range of disabilities covered by the ADA and shift the burden of proof of disability from employees to employers Age Discrimination in Employment Act (ADEA) o Protects workers 40 and over from employment and workplace discrimination in hiring, firing, promotion, layoff, compensation, benefits, job assignments, and training Minding the law in HRM o Employers must know the law and act accordingly o Legislation affects all areas of HRM o Court cases highlight that sometimes it’s proper to go beyond providing equal rights o Changes in law and legislation occur regularly Human Resource Planning Process o Preparing a human resource inventory of employees o Preparing a job analysis o Assessing future human resource demand o Assessing future labor supply o Establishing a strategic plan Job Analysis o Job analysis: a study of what employees do who hold various job titles o Job description: a summary of the objectives of the job, the type of work, the responsibilities and duties, working conditions, and relationship to other jobs o Job specifications: a summary of the minimum qualifications needed to do a particular job Recruiting employees 14 o Recruitment: the set of activities for obtaining the right number of qualified people at the right time o Human resource managers use both internal and external sources to recruit employees o Small businesses often make use of web sources like careerbulider and monster to recruit employees Competing for the “cream of the crop” o To survive, small businesses must recruit and retain qualified workers o Unfortunately, they lack the resources of larger companies to compete for employees o Small businesses need innovations like Letting staff help recruit and select candidates Audition an employee Seek out publicity Selection o Selection: the process of gathering info and deciding who should be hired, under legal guidelines, to serve the best interest of the individual and the organization o Steps in the selection process Obtaining complete application forms Conducting initial and follow-up interviews Giving employment tests Conducting background investigations Obtaining results from physical exams Establishing trial work periods Keeping the “right face” on Facebook 15 o Your online personality should be appealing to employers o Some of the worst things to do are Posting provocative or inappropriate photos Info on drug use or excessive drinking Bad mouthing a previous employer Discriminatory comments related to race, gender, religion, etc. Hiring contingent workers o Contingent workers: include part-time and temporary workers, seasonal workers, independent contractors, interns, and co-op students o There are about 5.7 million contingent workers in the US o Majority of contingent workers are under 25 o Why do we hire contingent workers? When full-time workers are on leave During periods of peak demand In uncertain economic times To save on employee benefits To screen candidates for future employment o Students and the contingent workforce With temporary staffing agencies, companies have easier access to screened workers Worker info is entered into their databases When students come back to town, they can call the agency and ask them to put their names into the system for work 16 o Intern or indentured servant With few entry-level positions available, interns can end up in an unpaid position for as long as 6 months with no chance of advancement Some businesses give interns lots of responsibility Is it ethical for companies to use unpaid interns if they know they don’t have jobs to offer or if the unpaid internships replace paid jobs? Training and developing employees o Training and development: all attempts to improve productivity by increasing an employee’s ability to perform o Training focuses on short-term skills o Development focuses on long-term abilities o Three steps of training and development: Assessing organization needs and employee skills to develop appropriate training needs Designing training activities to meet identified needs Evaluating the training’s effectiveness o Most commonly used training and development activities Orientation On-the-job training Apprenticeships Off-the-job training Online training Vestibule training 17 Job simulation Developing effective managers o Management development: the process of training and educating employees to become good managers and monitoring the progress of their skills over time o Management training includes: On-the-job coaching Understudy positions Job rotation Off-the-job courses and training Using networks and mentoring o Networking: establishing and maintaining contacts with key managers in and out of the organization and using those contacts to develop relationships o Mentors: managers who supervise, coach, and guide selected lower-level employees by acting as corporate sponsors o Networking and mentoring go beyond the work environment Appraising performance on the job o Performance appraisal: an evaluation that measures employee performance against established standards in order to make decisions about promotions, compensation, training, or termination o A 360-degree review gives managers opinions from people at different levels to get a more accurate idea of the worker’s ability o 6 steps: 18 establishing performance standards that are understandable, measurable, and reasonable clearly communicating those standards evaluating performance against those standards discussing the results with employees taking corrective action using the results to make decisions Compensation programs o A managed and competitive compensation program helps Attract the kinds of employees the business needs Build employee incentive to work efficiently and productively Keep valued employees from going to competitors or starting their own firm Maintain a competitive market position by keeping costs low due to high productivity from a satisfied workforce Provide employee financial security through wages and fringe benefits o Compensating teams Team-based pay programs are more challenging than individual pay systems The 2 most common methods involve – skill- based pay, where pay is increased as skill increases, and gain-sharing, where pay is increased as performance increases 19 o Fringe benefits: sick leave, vacation pay, pension and health plans that provide additional compensation to employees beyond base wages In 1929, fringe benefits accounted for less than 2% of payroll cost (today it’s about 30%) Healthcare has been the most significant increase in fringe benefit cost Includes incentives like: company cars, country club memberships, recreation facilities, special home mortgage rates, paid and unpaid sabbaticals, day-care and elder care services, dental and eye care, legal counseling, short or compressed work weeks o Cafeteria style and soft benefits Cafeteria style fringe benefits: allow employees to choose the benefits they want (up to a certain dollar amount) Soft benefits include: onsite haircuts and shoe repair, concierge services, free meals at work, doggie day care, onsite farmer’s markets Cultural challenges without conflict o Managers need to understand business needs of each country they operate in Compensation - conversion to foreign currencies and special allowances are often needed Health and pension standards – benefits are different country-by-country Paid time off – vacation time, sick and personal leave vary Taxation – tax policies vary 20 Communication – employees can feel disconnected in other countries Flexible scheduling plans o Flextime plan: gives employees some freedom to choose which hours to work as long as they work the required number of hours or complete their tasks Core time: when all employees are expected to be at their job stations; required in a flextime plan Flextime is difficult to incorporate into shift work and managers have to work longer hours Communication among employees can also be difficult under flextime and managers have to be alert to any system abuses o Compressed work week: employees work the full number of work hours, but in fewer than the standard number of days Employees enjoy long weekends after working long days Productivity is a concern Nurses and firefighters often work compressed work weeks o Job sharing: lets two or more part-time employees share on a full-time job Provides employment opportunities for many people who can’t work full time Workers tend to be enthusiastic and productive Absenteeism and tardiness are reduced 21 Employers can schedule part-time workers in peak demand periods Home based work o About 13 million Americans work from home at least several days a month o 12% of US businesses use some home based work o Bank of America has My Work that permits employees to work remotely about 60% of the time Moving employees o Employees are promoted or reassigned o Employees are terminated due to performance or economic situations o Employees retire Terminating employees o As the economic crisis grew, more and more employers have had to lay off employees o Even when the economy is booming, employers are hesitant to hire full-time workers because of the cost of termination o Firing employees is more difficult for employers because of laws preventing termination for certain acts 22
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