Session Objectives

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Human Resource Management
Session 7
LO2: Key elements of HRM
Session Objectives
By the end of the session, you will be able to:
Design job and workplace.
Manage rewards
Understand and apply motivational theories
Understand the methods of job design
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Job and Workplace Design
Workforce planning is, in the broadest sense, the activity required to
map the human resources required to achieve an organisation’s
Work design deals with the way work is organised and managed
including structures and grouping of functions.
Job analysis is the process of describing what work needs to be done
and includes specific responsibilities and working relationships.
The manager is responsible for designing structure and jobs but it is also
advisable that staff also are involved in designing jobs.
When designing a new structure affected staff must be consulted prior
to changes being made

Employee Reward Management
Organisations today need to attract, motivate and retain
talent at a time when salary increases are not always a
viable option.
Employee Reward Management is a key part of employee
engagement and should feature in any organisation’s talent
management strategy.
Businesses with successful employee reward management
plans are often highlighted as employers of choice and
realise competitive advantage through their people.
Total Reward, or ‘Flexible Benefits’ packages in particular
offer a creative, personalised, cost-effective way in which
to attract, motivate and retain employees, without huge
increases in the wage bill.

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Objectives of Reward
Support the organisation’s strategy
Recruit & retain
Motivate employees
Internal & external equity
Strengthen psychological contract
Financially sustainable
Comply with legislation
Efficiently administered
Basic Types of Reward
Extrinsic rewards

satisfy basic needs: survival, security
Pay, conditions, treatment
Intrinsic rewards
satisfy higher needs: job itself, esteem,

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Rewards by Individual, Team,
Individual: base pay, incentives, benefits

rewards attendance, performance, competence
team bonus, rewards group cooperation
profit-sharing, shares, gain-sharing

Why fair design of reward
It will have positive impact on the efficiency and results . system?
It will encourage the normal worker to perform better and achieve the standards
It will encourage the process of job evaluation. It will also help in setting up an
ideal job evaluation, which will have transparency, and the standards fixing
would be more realistic and achievable.
Enables worker/recipient to compute his own compensation receivable.
It will raise the morale, efficiency and cooperation among the workers.
It, being just and fair would provide satisfaction to the workers.
Helps management in complying with the various labor acts.
Bring about amicable settlement of disputes between workers & mgt.
It would embody itself the principle of equal work equal wages.
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Reward Strategy
Motivation Defined
Motivation –
the psychological
processes that
arouse and direct
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3 Components of
Direction relates to what an individual chooses to do
when presented with a number of alternatives
Intensity refers to the strength of response once the
alternative is chosen
Persistence refers to the staying power of behaviour or
how long a person will continue to devote effort
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Needs and Expectations
of Work
extrinsic rewards are those tangible
benefits that individuals receive in
return for their efforts
intrinsic rewards are the psychological
rewards that come from the
experience of work
social rewards are obtained by being
with other people, having a sense
of common purpose
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Extrinsic Reward is the
payoff, such as money
a person receives from
others for doing a
particular task
Intrinsic Reward is the
satisfaction, such as the
feeling of
accomplishment, a
person receives from
performing the
particular task itself
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How to foster intrinsic
Help employees find personal meaning
Create an open and positive atmosphere
Be enthusiastic
Vary work roles
Job enrichment
Create a learning community
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Maslow’s Hierarchy of Needs
5. Self-Actualization
4. Esteem needs
3. Social needs
2. Safety needs
1. Physiological needs
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What the Business Can Do
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Panel 12.2
1. Physiological Needs
2. Safety Needs
3. Belongingness Needs
4. Esteem Needs
5. Selfactualization
Adequate breaks,
ensure comfort, arrange
seats to meet needs,
heating and ventilation

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What the Business Can Do
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Panel 12.2
1. Physiological Needs
2. Safety Needs
3. Belongingness Needs
4. Esteem Needs
5. Selfactualization
privacy, treat
employees fairly,
follow safety rules
What the Business Can Do
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Panel 12.2
1. Physiological Needs
2. Safety Needs
3. Belongingness Needs
4. Esteem Needs
5. Selfactualization
Offer interaction with
others, participation in
groups, Show that you
care, provide
cohesive climate

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What the Business Can Do
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Panel 12.2
1. Physiological Needs
2. Safety Needs
3. Belongingness Needs
4. Esteem Needs
5. Selfactualization
Offer recognition,
praise when
appropriate, welcome
ideas, treat staff with
What the Business Can Do
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Panel 12.2
1. Physiological Needs
2. Safety Needs
3. Belongingness Needs
4. Esteem Needs
5. Selfactualization
Be enthusiastic and
supportive, create and
support a career
structure, be positive
about the future,
promote optimism

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Herzberg two factors theory
HYGIENE factors:
features of a business environment which, if present,
help avoid dissatisfaction with work.
features of the work itself, that employees find
enjoyable and that have a motivational effect
Herzberg’s Two -factor
Hygiene Factors
Quality of
Rules and procedures

sense of achievement
nature of work
personal growth and

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Application in the Business:
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1.Managers should try to achieve a state of no
dissatisfaction (attend to hygiene factors)
2.Increase the opportunities for achievement,
recognition, Responsibility, advancement and growth.
Expectancy Theory
that people are
motivated by two things
how much they
want something
(2) how likely they
think they are to get it
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Expectancy Theory
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The strength of a tendency to act in a certain way
depends on the strength of an expectation that
the act will be followed by a given outcome and
on the attractiveness of that outcome to
the individual
Business approaches
Give praise to your employees
Recognise their achievements
Emphasise that hard work will lead to career
Emphasise the value of achieving the desired outcome
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Equity Theory
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Employees may compare their
inputs and outcomes with those
of others and then respond so as
to eliminate any
Equity Theory
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Panel 12.7
My Inputs Their Inputs
My inputs are
compared with other
employees’ inputs
My Outputs Their Outputs
My outputs are
compared with other
employees’ outputs

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Equity Theory
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Panel 12.7
Equity is
Inequity is
“How does it seem the ratio of my inputs and
outputs compares with the
ratio of theirs? Are
they fair (equity) or unfair (inequity)?”
Approaches to employees
Reduce employees’ tendencies to compare themselves to
one another:
Focus on individual or group work rather than
Refrain from public criticism of employees’ performance
Emphasise effort put in rather than achievement
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Series of Job Design- job
extension techniques
Job Design
Job design logically follows job analysis. Job
analysis provides job related data as well as the
skill and knowledge expected of the incumbent to
discharge the job. Job design involves organizing
tasks, duties and responsibilities into a unit of
work to achieve certain objectives.
Job design is the process of deciding on the
contents of a job in terms of its duties and
responsibilities, on the methods to be used in
carrying out the job in terms of techniques,
systems and procedures, and on the relationships
that should exist between the job holders and his
supervisors, subordinates and colleagues
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Job Rotation
It is one of the methods of job design which is an
answer to the problem of boredom. Job rotation implies
the shifting of an employee from one job to another
without any change in the job. With job rotation, a
given employee performs different jobs but, more or
less, jobs of the same nature.
Job Simplification:
Here the jobs are simplified or specialised. A
given job is broken down into small sub-parts
and each part is assigned to one individual.
Job simplification involves (i) Mechanical
processing of work; (ii) Repetitive work
process (assembly lines); (iii) Working on only
one part of a product; (iv) Predetermining
tools and techniques; (v) Few skill
Work simplification is done so that lesstrained and the less paid employees can do
these jobs.

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Job Enlargement:
It is the process of increasing the scope of a job by
adding more tasks to it. The related tasks are
combined. Job enlargement involves expanding
the number of tasks or duties assigned to a given
job. Job enlargement therefore, naturally is
opposite to work simplification. Adding more
tasks/ duties to a job does not mean that new skill
and abilities are needed to perform it. There is
only a horizontal expansion.
Job enlargement reduces monotony and boredom.
It helps to increase interest in work and efficiency.
But there is no time increase of the job. Enlarged
jobs require longer training period as there are
more task to be learned.
Job Enrichment:
It involves designing a job in such a way that it provides
the workers greater autonomy for planning and
controlling his own performance. It seeks to improve
tasks, efficiency and human satisfaction by building into
people’s jobs, greater scope for personal achievement
and recognition, more challenging and responsible work
and more opportunity for individual advancement.