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Basic Elements of

Human Resource Management

Collect and Edited by

Md. Rizvi Akhter

Definition of Management:

Human

Resource

Human resource management (HRM) is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. In simple words, HRM means employing people, developing their capacities, utilizing, maintaining and compensating their services in adjust with the job and organizational requirement. Another word, HRM is the process of acquiring, training, appraising and compensating employees and attending to their labor relations, health & safety and fairness concern. While Miller (1987) suggests that HRM relates to:".......those decisions and actions which concern the management of employees at all levels in the business and which are related to the implementation of strategies directed towards creating and sustaining competitive advantage"

Business practice Human resources management involves several processes. Together they are supposed to achieve the above mentioned goal. These processes can be performed in an HR department, but some tasks can also be outsourced or performed by linemanagers or other departments. When effectively integrated they provide significant economic benefit to the company. Workforce planning Recruitment (sometimes separated into attraction and selection) Induction, Orientation and On boarding Skills management Training and development Personnel administration Compensation in wage or salary Time management Travel management (sometimes assigned to accounting rather than HRM) Payroll (sometimes assigned to accounting rather than HRM) Employee benefits administration Personnel cost planning Performance appraisal Labor relations coherent

Functions of HRM 1. Acquisition HR planning Recruiting- internal and external Employee socialization 2. Development Employee training Management development Career development 3. Motivation Job design Performance evaluations Rewards Job evaluations Compensations/ Benefits Discipline 4. Maintenance Safety and health Employee relations

Why is HRM important to all Managers: Hire the right person for the right job Reduce high turnover No wasting of time by useless interviews Dont take the discriminatory actions Reducing unsafe practices by using occupational safety Reducing salary gap/ discrepancy Adopting training for departments effectiveness Decrease the unfair labor practices Increasing job satisfaction Increasing organizational loyalty Ensuring smooth labor relations Implementing labor laws with the daily activities, etc

HRs strategic roles: As HR managers do assume more strategic planning responsibilities, they will have to acquire new skills. This does not just mean technical skills relating to activities like selection and training. HR managers will need an in depth understanding of the value creating proposition of the firms. Todays HR managers fulfill two basic strategic planning roles-

- Strategy execution
Strategy execution is traditionally the heart of the HR managers strategic planning jobs. Top management formulates the companys corporate and competitive strategies. Then, it formulates broad functional strategies and policies. Here the basic rule is this: the HR departments strategies, policies and activities must make sense in terms of the companys corporate and competitive strategies and they must support those strategies

- Strategy formulation HR increasingly plays an expanded strategic planning role today. HR helps top Mgt. formulate strategy in a variety of ways. For example, formulating a companys strategy plan requires identifying, analyzing and balancing the companys external opportunities and threats and its internal strengths and weakness Thus, the resulting strategic plans capitalize on the firms strengths and opportunities and minimize or neutralize its threats and weakness. Externally, HR management is in a unique position to supply competitive intelligence that may be useful in the strategic planning process. Similarly, HR participates in the strategy formulation process by supplying information regarding the companys internal human strengths and weaknesses.

HRM in a changing environment : Continuous Improvement A contingent workforce is a provisional group of workers who work for an organization on a non-permanent basis, also known as freelancers, independent professionals, temporary contract workers, independent contractors or consultants. Contingent Workforce Management (CWM) is the strategic approach to managing an organization's contingent workforce in a way that it reduces the company's cost in the management of contingent employees and mitigates the company's risk in employing them. Continuous Improvement Process (CIP) is an ongoing effort to improve products, services or processes. These efforts can seek "incremental" improvement over time or "breakthrough" improvement all at once. Delivery (customer valued) processes are constantly evaluated and improved in the light of their efficiency, effectiveness and flexibility. Some see it as a meta-process for most management systems (Business Process Management, Quality Management, and Project Management).

Workforce diversity : Similarities and differences among employees in terms of age, cultural background, physical abilities and disabilities, race, religion, sex, and sexual orientation. The "business case for diversity", theorizes that in a global marketplace, a company that employs a diverse workforce (both men and women, people of many generations, people from ethnically and racially diverse backgrounds etc.) is better able to understand the demographics of the marketplace it serves and is thus better equipped to thrive in that marketplace than a company that has a more limited range of employee demographics. An additional corollary suggests that a company that supports the diversity of its workforce can also improve employee satisfaction, productivity and retention. This portion of the business case, often referred to as inclusion, relates to how an organization utilizes its various relevant diversities. If a workforce is diverse, but the employer takes little or no advantage of that breadth of that experience, then it cannot monetize whatever benefits background diversity might offer.

Business process reengineering Reengineering (or re-engineering) is the radical redesign of an organization's processes, especially its business processes. Rather than organizing a firm into functional specialties (like production, accounting, marketing, etc.
The analysis and design of workflows and processes within and between an organization. A business process is a set of logically related tasks performed to achieve a defined business outcome Reengineering is the basis for many recent developments in management. The cross-functional team, for example, has become popular because of the desire to re-engineer separate functional tasks into complete cross-functional processes. Also, many recent management information systems developments aim to integrate a wide number of business functions. Enterprise resource planning, supply chain management, knowledge management systems, groupware and collaborative systems, Human Resource Management Systems and customer relationship management systems all owe a debt to reengineering theory.

Business Process Reengineering is also known as Business Process Redesign, Business Transformation, or Business Process Change Management.

Globalization: Globalization describes a process by which regional economies, societies, and cultures have become integrated through a globe-spanning network of communication and trade. The term is sometimes used to refer specifically to economic globalization: the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology. However, globalization is usually recognized as being driven by a combination of economic, technological, sociocultural, political, and biological factors. The term can also refer to the transnational circulation of ideas, languages, or popular culture through acculturation.

Employee Involvement: Employee involvement is creating an environment in which people have an impact on decisions and actions that affect their jobs. Employee involvement is not the goal nor is it a tool, as practiced in many organizations. Rather, it is a management and leadership philosophy about how people are most enabled to

contribute to continuous improvement and the ongoing success of their work organization.

Changing skill requirements :


Changes in the aggregate distribution of job skills result from changes in the distribution of employment among occupations as well as from changes in the skill requirements of individual occupations. How work is organized is one of the most important factors in determining what skills workers need to do their jobs successfully. Many analysts have argued that recent decades have seen the beginnings of a revolution in work organization, a revolution that continues and will have ever widening effects in the workforce. No longer will workers be successful if they are able only to complete one small unchanging set of tasks in a workplace that puts together the work of many to produce goods or services. Instead, they will need to be far more flexible, able to fit productively into teams that are formed for specific work tasks or projects that may only be performed once. They will need a new range of skills to negotiate the new, much more changeable, communication-rich and customerfocused world of work. These broad images of change have been expressed in a myriad of ways, with a variety of emphases. They have become almost an article of faith when talking about the likely future of work and skill requirements, often providing the context for various claims.

Human Resource Planning: Human Resource Planning (HRP) is a strategy for matching future manpower with the activities of the organization. Job analysis:
Job analysis is the procedure for determining the duties and skill requirements of a job and the kind of person who should be hired for it.

So job analysis is the procedure for determining duties and skill requirements of a job and the appropriate person who should be hired for that particular job. Steps in Job analysis: Decide how you will use the informa Review relevant background information Select representative positions Analyze the job by collecting data on job activities. Verify job analysis information Develop a job description and a job specification.

Uses of Job analysis information: 1. 2. 3. 4. 5. Recruitment and Selection Training Compensation Performance appraisal Discovering unassigned duties

Specific job analysis process: 1. Critical incidents techniques 2. Behaviorally Anchored Rating (BARS) 3. Position analysis questionnaire 4. Functional job analysis 5. Hay system Recruitment: Recruitment is the process of discovering potential candidates for actual or probable organizational vacancies. Sources of Recruitment: There are two types of recruitment1. Internal sources 2. External sources 1. Internal sources Finding internal candidates Rehiring Succession planning Scales

2. External sources Advertising Employment agencies Temp agencies and alternative staffing Outsourcing white collar and other jobs Executive recruiters Campus recruiting Recruiting via the internet Recruitment process from the organization:

Vacant of new position occurs Perform job analysis and plan recruiting effort Generate applicant pool via internal or external recruiting methods Evaluate applicants via selecting process Impress applicants Make offer Received education and chose occupation occurs Acquire employment experience Search for job openings Apply for job Impress company during selecting process Evaluate jobs and companies Accept or reject job offers

Applicant:

Types of Tests: 01. Tests of Cognitive abilities Intelligence tests Specific cognitive abilities

02. Tests of motor and physical abilities 03. Measuring personality and interests 04. Achievement tests Interview: An interview is a procedure designed to obtain information from a person through oral responses to oral inquires. A selection interview is a selection procedure designed to predict future job performance on the basis of applicants oral responses to oral inquiries. Types of Interview: 01. According to interview structure Structured interview Unstructured interview

02. According to interview content Situational interview Behavioral interview Job-related interview Stress interview 03. According to interview administer One on one interview Panel interview Sequential interview Mass interview

How to conduct a more effective interview: 1. Structure interview 2. Prepare for interview 3. Establish rapport 4. Ask questions 5. Close the interview 6. Review the interview

What can undermine the usefulness of an interview : 1. 2. 3. 4. 5. First impressions Misunderstanding the job Candidate- order error and pressure to hire Effect of personal characteristics Interviewer behavior Motivation:
Motivation may define as the act of stimulating someone to take a desired course of action. According to L.A. Alen Motivation is the work of manager who performs to inspire, encourage and drive people to take required action.

A motivator is something that influences an individual's behavior. Characteristics of Motivation: Motivation is a continuous process Motivation may be positive or negative Motivation may be monetary or non- monetary Motivation may be considered in totality, not in piece-meal Motivation is a psychological phenomenon which converts abilities into performance

Sources of Motivation: Pay or money Security of job Praise and recognition Competition Knowledge of results Participation Pride Delegation of authority Cultural variation Social factors Opportunity for advancement and attractive

Comfortable, safe working conditions Special motivation techniques

Management by Objective (MBO) and goal setting Participation in management Monetary incentives Flexible working hours Quality of working life

Job enrichment

Training: Training is a learning experience that it seeks a relatively permanent change in an individual that will improve the ability to perform on the job. So training can involve the changing of skills, knowledge, attitudes or behavior. It is provided only the interest of the organization. Employee Development: Development focuses on future jobs in the organization to give some change to the employee that they can compete outside the organization. The employees apply it both internal and external of the organization. Management Development: Management Development is designed to improve the overall effectiveness of managers in their present positions and to prepare them for greater responsibility when they are promoted. So, this development focuses more on the employees personal growth. Orientation training: Orientation training introduces new employees to the organization, the job and coworkers. It provides new employees with the basic background information required to perform their

job satisfactorily, such as information about company objectives, philosophy and rules; review specific duties and responsibilities; and introduce the employees to his or her manager and coworkers. Why orientation is important? 1. Reduce anxiety 2. Reduce role uncertainty 3. Initiate employee socialization 4. Reduce turnover 5. Improved job performance Training methods 1. On-the-job training methods 2. Off-the-job training methods 1. On-the-job training methods: Job instruction techniques Apprenticeship training Coaching Job rotation Understudy method Committee assignment

Special meeting of the staff

Off-the-job training : Lectures Discussion method Demonstrations Vestibule training Role playing Conference and seminars University and colleges Computer based instruction: Programmed instruction Interactive multimedia Films and slide show Virtual reality Games and simulations: Business games Case studies Role play In-basket techniques Behavioral modeling

Performance appraisal: Performance appraisal is defined as evaluating an employees current or past performance relative to his or her performance standards. So, performance appraisal can be defined as a process designed to help employees understand their roles, objectives, expectations and performance success. Performance appraisal methods: 1. Trait methods Graphic rating scales Paired comparison method The forced- choice method 2. Behavioral approaches Critical incidents method Behaviorally anchored rating scale 3. Results methods Productivity measures Management by objectives (MBO)

Factors that can distort appraisal : Leniency error Halo error Central tendency Low appraiser motivation Bias on individual characteristics Attribution theory
Creating more effective performance appraisal:

Use behavior based measures Combine absolute and relative standards Provide ongoing feedback Have multiple raters Rate selectively Train appraisers Compensation: Employee compensation refers to all forms of payment going to employees and arising from their employment. Compensation refers all kind of financial tangible benefits.

Reward Reward refers all the monetary or tangible, non-monetary or intangible benefits. So, compensation is reward but reward is not compensation. Types of Rewards: 1. Intrinsic versus extrinsic 2. Financial versus non-financial Bases for compensation: Time basis Piece basis Determining compensation- the wage mix: 1. Internal factors Employers compensation strategy Worth of a job Employees relative worth Employers ability to pay 2. External factors Labor market conditions Area wage rates Cost of living Collective bargaining Legal arrangements

Current trends in compensation Skill or competence based pay: With competence-based pay employees are paid for the range, depth and types of skills and knowledge they posses or are capable of using rather than for the job they currently hold. Here, competency can be defined as demonstrable characteristics of the person including knowledge, skills and behaviors that enable performance. Broad banding: Broad banding means collapsing salary grades and ranges into just a few wide levels or bands each of which contains a relatively wide range of jobs and salary levels. Why incentives plan fail? Performance pay management cant replace good

Employee get what they pay for Pay is not a motivator Rewards punish Rewards rupture relationships

Rewards can consequences

have

unintended

Rewards may undermine responsiveness (reaction) Rewards undermine intrinsic motivation. How to plans? implement effective incentive

Link the incentive with the strategy Make sure effort and rewards are directly related Make the plan easy for employees to understand Set effective standards View the standard as contract with the employees Get employee support for the plan Use good measurement systems Emphasize success long term vs short term

Adopt a comprehensive, oriented approach

commitment-

Employee benefits : Pay for time not worked 1. 2. 3. 4. 5. Unemployment insurance Vacations and holidays Sick leaves Severance pay Supplemental unemployment benefits Insurance benefits: 1. Workers compensations health and 2. Hospitalization, disability benefits 3. 4. Life insurance

Mental health benefits

5. Benefits for the part time and contingent workers. Retirement benefits: 1. 2. 3. 4. Social security Pension plan Pension alternatives Cash balance pension plans

Employee services Personal services: Credit unions Family friendly benefits Child care Elder care Transportations Food services Educational subsidies Medical services etc. Maslow's hierarchy of needs:

An interpretation of Maslow's hierarchy of needs, represented as a pyramid with the more basic needs at the bottom. Maslow's hierarchy of needs is a theory in psychology, proposed by Abraham Maslow in his 1943 paper A Theory of Human Motivation. Maslow subsequently extended the idea to include his observations of humans' innate curiosity. His theories parallel many other theories of human developmental psychology, all of which focus on describing the stages of growth in humans. Maslow studied what he called exemplary people such as Albert Einstein, Jane Addams, Eleanor Roosevelt, and Frederick Douglass rather than mentally ill or neurotic people, writing that "the study of crippled, stunted, immature, and unhealthy specimens can yield only a cripple psychology and a cripple philosophy." Maslow also studied the healthiest 1% of the college student population. Maslow's theory was fully expressed in his 1954 book Motivation and Personality. Representations Maslow's hierarchy of needs is often portrayed in the shape of a pyramid, with the

largest and lowest levels of needs at the bottom, and the need for self-actualization at the top, also the needs for people. Deficiency needs The lower four layers of the pyramid contain what Maslow called "deficiency needs" or "d-needs": physiological (including sexuality), security of position, friendship and love, and esteem. With the exception of the lowest (physiological) needs, if these "deficiency needs" are not met, the body gives no physical indication but the individual feels anxious and tense. Physiological needs For the most part, physiological needs are obviousthey are the literal requirements for human survival. If these requirements are not met (with the exception of clothing, shelter, and sexual activity), the human body simply cannot continue to function. Physiological needs include: Breathing Food Homeostasis

Air, water, and food are metabolic requirements for survival in all animals, including humans.

Clothing and shelter provide necessary protection from the elements. The intensity of the human sexual instinct is shaped more by sexual competition than maintaining a birth rate adequate to survival of the species. Safety needs With their physical needs relatively satisfied, the individual's safety needs take precedence and dominate behavior. These needs have to do with people's yearning for a predictable, orderly world in which injustice and inconsistency are under control, the familiar frequent and the unfamiliar rare. In the world of work, these safeties needs manifest themselves in such things as a preference for job security, grievance procedures for protecting the individual from unilateral authority, savings accounts, insurance policies, reasonable disability accommodations, and the like. Safety and Security needs include: Personal security Financial security Health and well-being Safety net against accidents/illness and their adverse impacts

Love and Belonging After physiological and safety needs are fulfilled, the third layers of human needs are social and involve feelings of belongingness. This aspect of Maslow's hierarchy involves emotionally based relationships in general, such as: Friendship Intimacy Family

Humans need to feel a sense of belonging and acceptance, whether it comes from a large social group, such as clubs, office culture, religious groups, professional organizations, sports teams, gangs, or small social connections (family members, intimate partners, mentors, close colleagues, confidants). They need to love and be loved (sexually and non-sexually) by others. In the absence of these elements, many people become susceptible to loneliness, social anxiety, and clinical depression. This need for belonging can often overcome the physiological and security needs, depending on the strength of the peer pressure; an anorexic, for example, may ignore the need to eat and the security of health for a feeling of control and belonging.

Esteem All humans have a need to be respected and to have self-esteem and self-respect. Also known as the belonging need, esteem presents the normal human desire to be accepted and valued by others. People need to engage themselves to gain recognition and have an activity or activities that give the person a sense of contribution, to feel accepted and self-valued, be it in a profession or hobby. Imbalances at this level can result in low self-esteem or an inferiority complex. People with low self-esteem need respect from others. They may seek fame or glory, which again depends on others. Note, however, that many people with low self-esteem will not be able to improve their view of themselves simply by receiving fame, respect, and glory externally, but must first accept themselves internally. Psychological imbalances such as depression can also prevent one from obtaining self-esteem on both levels. Most people have a need for a stable self-respect and self-esteem. Maslow noted two versions of esteem needs, a lower one and a higher one. The lower one is the need for the respect of others, the need for status, recognition, fame, prestige, and attention. The higher one is the need for selfrespect, the need for strength, competence, mastery, self-confidence, independence and

freedom. The latter one ranks higher because it rests more on inner competence won through experience. Deprivation of these needs can lead to an inferiority complex, weakness and helplessness. Maslow stresses the dangers associated with self-esteem based on fame and outer recognition instead of inner competence. Self-actualization What a man can be, he must be.This forms the basis of the perceived need for selfactualization. This level of need pertains to what a person's full potential is and realizing that potential. Maslow describes this desire as the desire to become more and more what one is, to become everything that one is capable of becoming. This is a broad definition of the need for self-actualization, but when applied to individuals the need is specific. For example one individual may have the strong desire to become an ideal parent, in another it may be expressed athletically, and in another it may be expressed in painting, pictures, or inventions. As mentioned before, in order to reach a clear understanding of this level of need one must first not only achieve the previous needs, physiological, safety, love, and esteem, but master these needs. Below are

Maslows descriptions of a self-actualized persons different needs and personality traits. Maslow also states that even though these are examples of how the quest for knowledge is separate from basic needs he warns that these two hierarchies are interrelated rather than sharply separated (Maslow 97). This means that this level of need as well as the next and highest level are not strict, separate, levels but closely related to others and this is possibly the reason that these two levels of need are left out of most textbooks. Criticisms In their extensive review of research based on Maslow's theory, Wahba and Bridgewell found little evidence for the ranking of needs Maslow described or even for the existence of a definite hierarchy at all. Chilean economist and philosopher Manfred Max-Neef has also argued fundamental human needs are non-hierarchical, and are ontologically universal and invariant in nature part of the condition of being human; poverty, he argues, may result from any one of these needs being frustrated, denied or unfulfilled. The order in which the hierarchy is arranged (with selfactualisation as the highest order need) has been criticised as being ethnocentric by Geert Hofstede.

Frederick Herzberg: Frederick Irving Herzberg (17 April 1923 19 January 2000) was an American psychologist who became one of the most influential names in business management. He is most famous for introducing job enrichment and the Motivator-Hygiene theory. His 1968 publication "One More Time, How Do You Motivate Employees?" had sold 1.2 million reprints by 1987 and was the most requested article from the Harvard Business Review. Herzberg attended City College of New York, but left part way through his studies to enlist in the army. As a patrol sergeant, he was a firsthand witness of the Dachau concentration camp. He believed that this experience, as well as the talks he had with other Germans living in the area was what triggered his interest in motivation. Herzberg graduated from City College in 1946 and moved to the University of Pittsburgh to undertake post-graduate workplace while teaching as a professor of psychology at Case Western Reserve University in Cleveland and later moved to the University of Utah where he held the position of professor of management in the college of business.

Two- factor theory fundamentals Attitudes and their connection with industrial mental health are related to Maslow's theory of motivation. His findings have had a considerable theoretical, as well as a practical, influence on attitudes toward administration. According to Herzberg, individuals are not content with the satisfaction of lower-order needs at work, for example, those associated with minimum salary levels or safe and pleasant working conditions. Rather, individuals look for the gratification of higher-level psychological needs having to do with achievement, recognition, responsibility, advancement, and the nature of the work itself. So far, this appears to parallel Maslow's theory of a need hierarchy. However, Herzberg added a new dimension to this theory by proposing a two-factor model of motivation, based on the notion that the presence of one set of job characteristics or incentives lead to worker satisfaction at work, while another and separate set of job characteristics lead to dissatisfaction at work. Thus, satisfaction and dissatisfaction are not on a continuum with one increasing as the other diminishes, but are independent phenomena. This theory suggests that to improve job attitudes and productivity, administrators must recognize and attend to both sets of characteristics and not

assume that an increase in satisfaction leads to decrease in unpleasurable dissatisfaction. The two-factor, or motivation-hygiene theory, developed from data collected by Herzberg from interviews with a large number of engineers and accountants in the Pittsburgh area. From analyzing these interviews, he found that job characteristics related to what an individual does that is, to the nature of the work he performs apparently have the capacity to gratify such needs as achievement, competency, status, personal worth, and self-realization, thus making him happy and satisfied. However, the absence of such gratifying job characteristics does not appear to lead to unhappiness and dissatisfaction. Instead, dissatisfaction results from unfavorable assessments of such job-related factors as company policies, supervision, technical problems, salary, interpersonal relations on the job, and working conditions. Thus, if management wishes to increase satisfaction on the job, it should be concerned with the nature of the work itself the opportunities it presents for gaining status, assuming responsibility, and for achieving selfrealization. If, on the other hand, management wishes to reduce dissatisfaction, then it must focus on the job environment policies, procedures, supervision, and working conditions.

If management is equally concerned with both (as is usually the case), then managers must give attention to both sets of job factors. Two-factor theory distinguishes between: Motivators (e.g., challenging work, recognition, responsibility) that give positive satisfaction, arising from intrinsic conditions of the job itself, such as recognition, achievement, or personal growth[4], and Hygiene factors (e.g. status, job security, salary and fringe benefits) that do not give positive satisfaction, though dissatisfaction results from their absence. These are extrinsic to the work itself, and include aspects such as company policies, supervisory practices, or wages/salary.

Essentially, hygiene factors are needed to ensure an employee is not dissatisfied. Motivation factors are needed to motivate an employee to higher performance, Herzberg also further classified our actions and how and why we do them, for example, if you perform a work related action because you have to then that is classed as movement , but if you perform a work related action because you want to then that is classed as motivation .

Unlike Maslow, who offered little data to support his ideas, Herzberg and others have presented considerable empirical evidence to confirm the motivation-hygiene theory. Their work, however, has been criticized on methodological grounds. Nevertheless, Herzberg and his associates have rendered a valuable service to science and to management through their efforts to apply scientific methods to understanding complex motivational problems at work and have stimulated others to continue the search.
Two Factor Theory "The Dual Structure Theory":

Herzberg proposed the Motivation-Hygiene Theory, also known as the Two factor theory (1959) of job satisfaction. According to his theory, people are influenced by two sets of factors:
Motivator Factors Achievement Recognition Work Itself Responsibility Promotion Growth Hygiene Factors

Pay and Benefits Company Policy and Administration Relationships with co-workers Supervision Status Job Security Working Conditions

Personal life He proposed several key findings as a result of this identification. 1. People are made dissatisfied by a bad environment, but they are seldom made satisfied by a good environment. 2. The prevention of dissatisfaction is just as important as encouragement of motivator satisfaction. 3. Hygiene factors operate independently of motivation factors. An individual can be highly motivated in his work and be dissatisfied with his work environment. 4. All hygiene factors are equally important, although their frequency of occurrence differs considerably. 5. Hygiene improvements have short-term effects. Any improvements result in a short-term removal of, or prevention of, dissatisfaction. 6. Hygiene needs are cyclical in nature and come back to a starting point. This leads to the "What have you done for me lately?" syndrome. 7. Hygiene needs have an increasing zero point and no final answer.

McClelland's Theory of Needs In his acquired-needs theory, David McClelland proposed that an individual's specific needs are acquired over time and are shaped by one's life experiences. Most of these needs can be classed as either achievement, affiliation, or power. A person's motivation and effectiveness in certain job functions are influenced by these three needs. McClelland's theory sometimes is referred to as the three need theory or as the learned needs theory. Achievement People with a high need for achievement (nAch) seek to excel and thus tend to avoid both low-risk and high-risk situations. Achievers avoid low-risk situations because the easily attained success is not a genuine achievement. In high-risk projects, achievers see the outcome as one of chance rather than one's own effort. High nAch individuals prefer work that has a moderate probability of success, ideally a 50% chance. Achievers need regular feedback in order to monitor the progress of their acheivements. They prefer either to work alone or with other high achievers.

Affiliation Those with a high need for affiliation (nAff) need harmonious relationships with other people and need to feel accepted by other people. They tend to conform to the norms of their work group. High nAff individuals prefer work that provides significant personal interaction. They perform well in customer service and client interaction situations. Power A person's need for power (nPow) can be one of two types - personal and institutional. Those who need personal power want to direct others, and this need often is perceived as undesirable. Persons who need institutional power (also known as social power) want to organize the efforts of others to further the goals of the organization. Managers with a high need for institutional power tend to be more effective than those with a high need for personal power.

Theory X and Theory Y Douglas McGregor in his book, "The Human Side of Enterprise" published in 1960 has examined theories on behavior of individuals at work, and he has formulated two models which he calls Theory X and Theory Y. Theory X Assumptions: The average human being has an inherent dislike of work and will avoid it if he can. Because of their dislike for work, most people must be controlled and threatened before they will work hard enough. The average human prefers to be directed, dislikes responsibility, is unambiguous, and desires security above everything. These assumptions lie behind most organizational principles today, and give rise both to "tough" management with punishments and tight controls, and "soft" management which aims at harmony at work. Both these are "wrong" because man needs more than financial rewards at work, he also needs some deeper higher order motivation - the opportunity to fulfill himself.

Theory X managers do not give their staff this opportunity so that the employees behave in the expected fashion.

Theory Y Assumptions: The expenditure of physical and mental effort in work is as natural as play or rest. Control and punishment are not the only ways to make people work, man will direct himself if he is committed to the aims of the organization. If a job is satisfying, then the result will be commitment to the organization. The average man learns, under proper conditions, not only to accept but to seek responsibility. Imagination, creativity, and ingenuity can be used to solve work problems by a large number of employees. Under the conditions of modern industrial life, the intellectual potentialities of the average man are only partially utilized.

Comments on Theory X and Theory Y Assumptions:

These assumptions are based on social science research which has been carried out, and demonstrate the potential which is present in man and which organizations should recognize in order to become more effective. McGregor sees these two theories as two quite separate attitudes. Theory Y is difficult to put into practice on the shop floor in large mass production operations, but it can be used initially in the managing of managers and professionals. In "The Human Side of Enterprise" McGregor shows how Theory Y affects the management of promotions and salaries and the development of effective managers. McGregor also sees Theory Y as conducive to participative problem solving. It is part of the manager's job to exercise authority, and there are cases in which this is the only method of achieving the desired results because subordinates do not agree that the ends are desirable. However, in situations where it is possible to obtain commitment to objectives, it is better to explain the matter fully so that employees grasp the purpose of an action. They will then exert selfdirection and control to do better work - quite

possibly by better methods - than if they had simply been carrying out an order which the y did not fully understand.
The situation in which employees can be consulted is one where the individuals are emotionally mature, and positively motivated towards their work; where the work is sufficiently responsible to allow for flexibility and where the employee can see her or his own position in the management hierarchy. If these conditions are present, managers will find that the participative approach to problem solving leads to much improved results compared with the alternative approach of handing out authoritarian orders.

Once management becomes persuaded that it is under estimating the potential of its human resources, and accepts the knowledge given by social science researchers and displayed in Theory Y assumptions, then it can invest time, money and effort in developing improved applications of the theory. McGregor realizes that some of the theories he has put forward are unrealizable in practice, but wants managers to put into operation the basic assumption that: Staff will contribute more to the organization if they are treated as responsible and valued employees.

Expectancy theory: Expectancy theory is about the mental processes regarding choice, or choosing. It explains the processes that an individual undergoes to make choices. In organizational behavior study, expectancy theory is a motivation theory first proposed by Victor Vroom of the Yale School of Management. Expectancy theory predicts that employees in an organization will be motivated when they believe that: putting in more effort will yield better job performance better job performance will lead to organizational rewards, such as an increase in salary or benefits these predicted organizational rewards are valued by the employee in question. emphasizes the needs for relate rewards directly to to ensure that the rewards rewards deserved and wanted

"This theory organizations to performance and provided are those by the recipients."

Emphasizes self interest in the alignment of rewards with employee's wants. Emphasizes the connections among expected behaviors, rewards and organizational goals Vroom's theory assumes that behavior results from conscious choices among alternatives whose purpose it is to maximize pleasure and to minimize pain. Together with Edward Lawler and Lyman Porter, Vroom suggested that the relationship between people's behavior at work and their goals was not as simple as was first imagined by other scientists. Vroom realized that an employee's performance is based on individual factors such as personality, skills, knowledge, experience and abilities. Victor H. Vroom introduces three variables within the expectancy theory which are valence (V), expectancy (E) and instrumentality (I). The three elements are important behind choosing one element over another because they are clearly defined: effort-performance expectancy (E>P expectancy), performance-outcome expectancy (P>O expectancy).

E>P expectancy: Our assessment of the probability our efforts will lead to the required performance level. P>O expectancy: Our assessment of the probability our successful performance will lead to certain outcomes.
Vrooms model is based on three concepts: 1. Valence - Strength of an individuals preference for a particular outcome. For the valence to be positive, the person must prefer attaining the outcome to not attaining it. Instrumentality Means of the first outcome in obtaining the desired second outcome; the degree to which a first outcome will lead to the second outcome. level level level level

2.

3.

Expectancy - Probability or strength of belief that a particular action will lead to a particular first level outcome.

Vroom says the product of these variables is the motivation. In order to enhance the performanceoutcome tie, managers should use systems that tie rewards very closely to performance. Managers also need to ensure that the rewards provided are deserved and wanted by the recipients. In order to improve the effort-performance tie, managers should

engage in training to improve their capabilities and improve their belief that added effort will in fact lead to better performance.

Collective Bargaining: Collective bargaining is the negotiation between representatives of management and workers to produce a written agreement covering terms and conditions of employment. Collective Bargaining Agent (CBA): CBA means any such trade union or trade union federation of any establishment or group of establishments, which works as the agent of the workers in the matter of collective bargaining. Trade Union: A trade union is a continuous association of wage earners for the purpose of maintaining or improving the conditions of their working life. Objectives of Trade Union: 1. Higher wages and salaries 2. Greater job security 3. Influence work rules 4. Dissatisfaction with management 5. Social and leadership concerns

Management Strategies for avoiding Unions: 1. Wages and fringe benefits equal to, or greater
than, those paid comparable unionized workers in the industry or labor market.

2. High rate of investment per worker in human


support program such as training and career development.

3. Advanced

systems of organizational communications and information sharing. participation in decision-making about the way of work is to be performed.

4. Informal mechanisms for, or encouragement of,

5. Development of psychological climate that fosters


and rewards commitment. organizational loyalty and

6. Rational

wage and salary administration, performance appraisal and promotion systems that reward merit, but also recognize the relevance of seniority. binding arbitration).

7. Non-union grievance procedure (usually without 8. Location of new production facilities in rural or
other weak union areas wherever possible.

9. In some cases, use of employee selection devices


to avoid workers most likely to be pro-union.

Issues in Collective Bargaining: 1. Wage an fringe benefit levels, payment systems and administration. 2. 3. Job and income security. Physical working conditions.

4. Selected personnel management and plant operation practices. 5. Union and management rights, responsibilities and relations.

Dispute/conflict settlement process :


Existence of Dispute Demand for meeting A written demand from any party (representatives of employers or CBA) is to be served to the other for a meeting.

Collective Bargaining Formal collective bargaining session starts within 10 days after receiving written demand from either party for a meeting. The total time limit is not stipulated.

Memorandum of Agreement A memorandum of agreement is signed by both the parties and a copy thereof is forwarded to the relevant office.

Request for Conciliation Either party concerned may request for conciliation.

Conciliation A period of 30 days is provided for conciliation. Conciliation session may, however, be continued further on the basis of the agreement of the parties concerned.

Memorandum of Settlement A memorandum of settlement Is prepared and signed by both the parties and a copy is sent to the Govt.

Certificate of failure A certificate of failure is issued.

Adjudication by Labour Court Either of the disputant parties may approach the lobour court for adjudication. The total time limit is 60 days. (NB: if failure of conciliation result in strike or lock-out continuing for more than 30 days the Government may prohibit the strike lock-out and the case may be referred to the labour court for adjudication.)

Appeal to Labour Appellate Tribunal An appeal against the verdict of Labour court, except for a complaint case or legal right case, can be made to labour appellate tribunal within 30 Days of the verdict. The total time limit is 60 days.

Writ Petition High Court Two types of cases complaint cases or legal right cases are nonAppeal able at Labour Appellate Tribunal, but they come under the Jurisdiction of writ petition to the High Court for a review of the judgment of labour court. No time Limit is stipulated.

Bangladesh Labour Code-2006: Section- 100: Daily working hours


- No adult worker in any establishment shall work ordinarily not more than 8 hours daily or he shall not be made to work beyond this time. - Provided that subject to the provision provided for in section 108 any such worker may work in any establishment also for a period of 10 hours

Section- 102: Weekly working hours


1) No adult worker in any establishment shall not be more than 48 hours in a week or he can not be made to work as such. 2) Subject to the provision provided for in section. 108, any adult worker in any establishment may work for more than 48 hours in a week: Provided that the total working hour of a worker in a week shall not be more than 60 hours and in any year that can not be more than 56 hours on an average: Provided further that, in any road transport establishment total over time working hours of any worker shall not be 150 hours in a year. Provided further that, in case of special type of industries, the Govt. may on conditions

imposed by order in writing relax the provision of this section, or give exemption from it for a period of maximum 6 months at a time, if it is satisfied that such relaxation or exemption is necessary in the public interest or economic development. Section-103: Weekly holiday Any worker employed in any establishmenta) Shall be entitled to holiday for one day and a half in case of shop, commercial or industrial concern and one day in case of factories and establishment in a week. b) Shall not be entitled to holiday for one day consisting of continuous twenty four hours in a week in case of road transport establishment and for such leave no deduction shall be made from his wages.

Section- 104: Compensatory weekly holiday Where, as a result of the passing of an order or making of a rule under this Act exempting an establishment or workers employed there in from the provisions of section 103 any worker is deprived of any holiday which he is entitled to, he shall be allowed, as soon as circumstances permit, holidays of equal number to the holidays to deprived of.

Section- 108: Extra allowance for overtime


1) Where a worker works in any establishment on any day or week for a period in excess of the period prescribed by this Act, he shall, in respect of overtime work, be entitled to allowance at the rate of twice his ordinary rate of basic wages and dearness allowance and ad-hoc or interim wages, if any 2) Where any worker in an establishment is paid on a piece- rate basis, the employer for the purpose of this section, shall in consultation with the representative of the workers, fix time rate, as nearly as possible, equivalent to the average rates of earnings of such workers and the rates so fixed shall be deemed to be the ordinary rates of wages of such workers. 3) The Govt. may prescribe the registers to be maintained in an establishment with the aim of securing the compliance with the provisions of this section.

Section- 115: Casual leave Every worker shall be entitled to casual leave with full wages for 10 days in a calendar year, and if for any reason he does not enjoy such leave, it will remain in his credit and leave admissible in one year can not be enjoyed in the following year. Provided that nothing of this section shall apply to any employed in any tea-plantation.

Secion-116: Sick leave 1. Every worker, other than the newspaper worker, shall be entitled to sick-0leave for fourteen days with full wages in a calendar year, 2. Every newspaper worker shall be entitled to sick-leave for a period not less than one-eighteen of the period of service with full wages. 3) Such leave shall not be granted unless a registered physician employed by the employer or, in his absence, any other registered physician certifies on examination that the concerned worker is sick and for his treatment or for recovery he needs leave for the cited period. 4) Such leave shall not get accumulated and if such leave is not availed of in any year, if cannot be enjoyed in the following year. Section- 117: Annual leave with wages 1) Every adult worker who completed continuous service for one year in any establishment shall be entitled to leave with wages during the subsequent period of shall be entitled to leave with wages during the subsequent period of 12 months for the services given during the preceding 12 months on

the basis of the calculation made in accordance with the following rate, such asa) In case of any shop or commercial or industrial or any factory or road transport establishment, one day for every 18 days, b) In case of any tea plantation one day for every 20 days, c) In case of any newspaper worker one day for every 11 days, 2) Any young worker who completed his continuous service for one year, shall be allowed leave with wages during the period of subsequent 12 months for the service given during the preceding 12 months on the basis of the calculation made in accordance with the following rate; such as:a) In case of any factory, one day for every 15 days b) In case of any tea plantation, one day for every 18 days c) In case of any shop or commercial or industrial establishment, one day for every 14 days 3) If any worker within any period of 12 months does not avail of fully or partly the leave which he is entitled under sub-section (1) or (2) obtainable

leave shall be added to his obtainable leave during the subsequent period of 12 months. 4) Notwithstanding anything contained in subsection (3) earning of leave by a adult worker shall cease when his earned leavea) In case of any factory or road transport establishment amounts to 40 days; b) In case of any tea plantation, shop or commercial or industrial establishment amounts to 60 days. 5) Notwithstanding anything contained in subsection (3) the earning of leave by a young worker shall cease under this section when his obtainable earned leave; a) In case of any factory or tea plantation, amounts of 60 days; b) In case of any shop or commercial or industrial establishment, amounts to 80 days. 6) For the purpose of this section a worker shall be deemed to have completed a period of continuous service in any establishment notwithstanding any interruption in service during that period due to a) Any holiday

b) Any leave with wages c) Any leave with wages or without wages due to sickness or accident d) Maternity leave not exceeding 16 weeks e) Any period of lay-off f) Any strike in conformity with legality or any illegal lock-out. 1) Every worker shall have to be allowed festival holiday with wages for a period of 11 days in a calendar year. 2) The employer shall fix the days and dates of such leave in the manner as may be prescribed by rules.

Section- 118: Festival holidays

3)

A worker may be required to work on any festival holiday, but for this compensatory holiday with wages for 2 days and a substitute holiday shall have to be provided for him in accordance with the provisions of section 103.

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