Power Point to accompany Module 1 b Chapter

Power. Point to accompany Module 1 b Chapter 2 Engaging and motivating employees and managing organisational change

Lecture objectives § Explain what ‘work motivation’ is § Describe the characteristics of a positive work environment and how human resource development can develop and maintain this § Describe the different SHRM styles in motivating staff § Outline the content theories of motivation § Outline the process theories of motivation § Explain what ‘organisational change’ is § Discuss HRM strategies for managing change Copyright © 2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442517981/ Härtel l/Human Resource Management/2 nd edition)

Motivating employees § Work Motivation is defined as the stimulation of effort required to achieve and maintain organisational goals § No two people are alike § Unique values, attitudes, beliefs, strengths, expectations and ideas Unlike other resources (financial and technical), human resources are very difficult to predict § § Management must direct employee behaviour towards organisational goals § Understanding why people work is essential to this task Copyright © 2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442517981/ Härtel l/Human Resource Management/2 nd edition)

Motivating employees § Positive leaders: work with employees’ strengths, quickly address negative behaviours that may arise, as part of promoting a PWE. § Positive work environment (PWE): where employees feel supported and fairly rewarded, have self-efficacy and integrity, and perceive an environment of trust and organisational justice. Copyright © 2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442517981/ Härtel l/Human Resource Management/2 nd edition)

Motivating employees through HRM § Intrinsic factors § § Soft factors (e. g. , friendly work environment) Extrinsic factors § Hard factors (e. g. , money, status, big office) A balance between the two is generally preferred Copyright © 2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442517981/ Härtel l/Human Resource Management/2 nd edition)

Hard and Soft HRM paradox § Hard and soft HRM reflect focus on ‘managerial control strategies’ versus the ‘nature of people’ § Hard HRM § § Soft HRM § § Humans are viewed as costs (Theory X) Humans are viewed as people (Theory Y) A combination of the two may be used, although soft HRM is preferred as it values people as an organisation’s most valuable assets. Copyright © 2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442517981/ Härtel l/Human Resource Management/2 nd edition)

Integration of hard and soft HRM Copyright © 2010 Pearson Australia (a division of

Theories of motivation § Traditional views of motivation were based on scientific management and later on human relations § Content theories: Humans have certain wants and needs that direct behaviour § Process theories: Highlight thought patterns that underlie decisions of whether or not to engage in certain behaviour § Be aware of limitations of each theory Copyright © 2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442517981/ Härtel l/Human Resource Management/2 nd edition)

Maslow’s hierarchy Copyright © 2010 Pearson Australia (a division of Pearson Australia Group Pty

Psychological contracts and motivation § Psychological contracts: intangible, informal contracts that the employee perceives constitute their employment relationship § § Relational § § Transactional Ideology infused Psychological contracts can impact upon employees’ discretionary behaviours (and their motivation to work) Copyright © 2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442517981/ Härtel l/Human Resource Management/2 nd edition)

HR ethics, psychological contracts and motivation § Deontological theory: Business is ethical when treating people with respect is the goal. § Utilitarian theory: Business is ethical when people are the means to maximise positive business consequences for the majority of stakeholders (e. g. shareholders) § Stakeholder theory: business is ethical when all stakeholders mutually benefit (e. g. employees, shareholders, customers, suppliers, unions and the local community) Copyright © 2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442517981/ Härtel l/Human Resource Management/2 nd edition)

Organisational justice perceptions § Distributional justice: Justice perceptions regarding the fairness of the distribution of resources within the organisation § Procedural justice: Justice perceptions regarding the procedures that are used within the organisation § Interactional justice: Justice perceptions regarding interpersonal interactions (e. g. honesty, politeness, and dignity) v Especially critical in time of constant changes Copyright © 2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442517981/ Härtel l/Human Resource Management/2 nd edition)

Diversity § Diverse workplaces (e. g. race, gender, sexual orientation, age, disabilities, lifestyle and values) Key cultural orientations: § Individualists: typically associated with Western cultures such as Australia, U. S. and NZ (Hofstede, 1980); satisfying individual goals § Collectivists: typically associated with Eastern cultures such as China, Thailand Japan (Hofstede, 1980); seek to benefit the group and community Copyright © 2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442517981/ Härtel l/Human Resource Management/2 nd edition)

Motivation during times of change § Organisational change: any alteration which causes a shift in the status quo, affecting the structure and resources of an organisation § Organisational change affects the ability to engage and motivate employees § Employee motivation levels may change at any time as can the focus of motivation (e. g. , productive vs. counterproductive behaviours) § Continual monitoring is necessary Copyright © 2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442517981/ Härtel l/Human Resource Management/2 nd edition)

Types of organisational change § Planned: Any deliberate, structured execution of a shift in the status quo § Unplanned: Unanticipated change which is generally forced upon the company § Incremental: A series of small changes § Radical: Large-scale and drastic change. There are five stages of radical change: § Planning, enabling, launching, catalysing and maintaining Copyright © 2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442517981/ Härtel l/Human Resource Management/2 nd edition)

HRM strategies for change § Change success depends a great deal on the attitude that an organisation adopts towards its employees during the change process. § Change initiatives that adopt a caring attitude towards employees, together with a concern for economic results tend to be more successful than initiatives that simply focus on economic results. § Communication, Voice, and Justice § Cultivation of a culture of emotional awareness (e. g. emotional intelligence) Copyright © 2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442517981/ Härtel l/Human Resource Management/2 nd edition)

The CHRM decision-making framework Copyright © 2010 Pearson Australia (a division of Pearson Australia

Step 1 Screening HR-environmental factors § Monitor/analyse data (past, present and future): e. g. Unfriendly CEO and senior management in the past; redundancies § Internal/organisational environment: e. g. Diversity-closed culture (gender bias? ) § External environment: e. g. Stricter Airline Regulations since 2001 Copyright © 2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442517981/ Härtel l/Human Resource Management/2 nd edition)

Step 2 Detect HR potential problem or opportunity § Lack of employee motivation § Low absenteeism and high turnover § Gender discrimination claims Copyright © 2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442517981/ Härtel l/Human Resource Management/2 nd edition)

Step 3 Verify /falsify potential problem or opportunity § Motivational factors § Management style § Redundancy effects Copyright © 2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442517981/ Härtel l/Human Resource Management/2 nd edition)

Step 4 Devise plan and success criteria § Change the management style to develop respect for and trust from employees § Ask employees what motivates them to work (learn about their values) § Identify employees’ thoughts, fears and concerns relating to the redundancies § Identify and address areas where employees perceive discrimination Copyright © 2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442517981/ Härtel l/Human Resource Management/2 nd edition)

Step 5 Implement the plan § Develop an employee motivation, perceived discrimination and redundancies related questionnaire within 4 weeks § Have employees answer the questionnaire within the following 2 weeks § Once the questionnaire content is analysed, change management styles to respond to needs in the areas of perceived gender discrimination, redundancy effects and motivation Copyright © 2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442517981/ Härtel l/Human Resource Management/2 nd edition)

Step 6 Evaluate against success criteria § Distribute the questionnaire on an annual basis and examine trends § Identify percentage of reduction in employee absenteeism, turnover and discriminatory claims Copyright © 2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442517981/ Härtel l/Human Resource Management/2 nd edition)

Conclusion § Engaging and motivating employees is an important part of the SHRM process § People work (and are motivated) for different reasons § Positive leaders, psychological contracts and cultural orientations are all critical in motivating and engaging employees in their work § Organisational change can impact on employee motivation and behaviour § HR managers must continually monitor the workplace Copyright © 2010 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442517981/ Härtel l/Human Resource Management/2 nd edition)