Human Resources

Management (Finals)
I. Managing People Motivation
II. Performance Management
III. Managing Good Employee Relations

By: LORNA S. BULOSAN, CPA, DBA

 Managing People Motivation
Human Resources are the heart and soul of
the organization. In order for the businesses to
Succeed, it is important to manage them effectively.
In today’s globally competitive business success
depends on the people to optimize the full
Utilization of their talents. It is not enough to
attract and retain talented people but you should
motivate them to use their talents.
 the internal condition that activates behavior and gives
it
direction
 energizes and directs goal-oriented behavior
 to give people what they really want most from work
 the reason why people do things they do
History of Motivation
Carrot and Stick Theory
- The oldest technique used to motivate others.
The name evolved from the stubbornness of donkeys
that could only be moved by taunting them with a
carrot. Carrot and stick motivation is a motivational
approach that involves offering a “carrot” (a reward—
for good behavior) and a “stick” (a negative
consequence for poor behavior). It motivates staff by
creating actionable goals and desirable rewards for
employees who can alter their behavior and
performance.
 Motivation Theories
Needs became the central element in everyday
psychology.
 Parents worry about the needs of their children
 Politicians pride themselves in responding the needs
of their constituents
 Managers try to understand the needs of their
employees
 help provide insight into why people behave the way
they do and what energizes them
 1. Maslow’s Hierarchy of Needs

- one of the most widely

discussed theories of
motivation.
- provided insight into the
differences among employees
as well as the changes of
motivational drivers across
time for one individual.
- it is predetermined in order
of importance
2. Herzberg’s Motivation-Hygiene Theory
Equity Theory
 PERFORMANCE
MANAGEMENT
DEFINITION:

 systematic process by which an organization involves its employees, as

individuals and members of a group, in improving organizational
effectiveness in the accomplishment of the organization’s mission and vision.
 the process through which the managers ensure that employees’ activities
and outputs are congruent with the organization’s goals.
It is a strategic action used to promote an effective organization. It ensures that
Individual employee’s efforts are focused on the programs and strategies set
out in the corporate and departmental business plans. It directs efforts towards
effectiveness and results. It ensures that goals are consistently being met in an
effective and efficient manner.
Performance Management
Performance management is a process that helps managers monitor and evaluate employees'
work. The goal of performance management is to create an environment where people can
perform to the best of their abilities and in alignment with the organization's overall goals.
Performance management is widely used in both the private and public sectors.
How Performance Management Works
A formal performance-management program helps managers and employees see eye-to-eye
about expectations, goals, and career progress, including how an individual's work aligns with
the company's overall vision.
It helps direct the funds allocated as a part of the company's performance budget. Generally
speaking, performance management views individuals in the context of the broader
workplace system. In theory, companies seek the absolute performance standard, even
though that is considered to be unattainable.
Common Steps in Performance Management
Performance-management is generally customized for a specific organization's needs. Typically,
effective performance-management programs include certain universal elements, such as:
• Aligning employees' activities with the company's mission and goals. Each
employee should understand how their job contributes to the company's overall goals. Supervisors
and employees together should define a job's duties.
• Developing specific job-performance outcomes. Through performance management,
employees should understand: What goods or services does my job produce? What procedures does
my job entail? What effect should my work have on the company? How should I interact with clients,
colleagues, and supervisors?
• Creating measurable performance-based expectations. Employees should have
the opportunity to give input into how success is measured. The expectations can include results,
which are the goods and services an employee produces; actions, which are the processes an
employee uses to make a product or perform a service; and behaviors, which are the demeanor and
values an employee demonstrates at work.
• Defining job-development plans. Employees should have a say in what types of new things
they learn and how they can use that knowledge to the company's benefit.
• Meeting regularly. Instead of waiting for an annual performance appraisal, managers and
employees should engage actively year-round to evaluate progress.
Performance Management
Process
Planning: This step calls for establishing expectations and developing a
strategic performance management plan for employees. Here you should set
S.M.A.R.T goals, determine deadlines, and make clear how they will impact the team and
the entire company.
Monitoring: Crucial to achieving goals is consistent monitoring of progress. You don’t want
to be a helicopter manager, but you do want to frequently check in with employees to help
work through problems as they arise.
Whether it’s weekly, bi-weekly, or monthly, consistent check-ins keep employees and
managers working together and on the same page.
Reviewing: With frequent check-ins, performance reviews turn into more of a formality
rather than an intensive process. This is the official place for employees and managers to
share their view on how the year went and look back on the progress and achievements.
Rewarding: Nothing plays a bigger role in employee motivation than this. Rewarding
employees for their efforts and achievements throughout the year, not just once at the end
of it, lets them know their talents are appreciated and encourages them to continue to
perform at a high level.
Inadequate rewarding can leave them discouraged, unappreciated, and looking for a new
job.
SMART as Goal Setting
SMART is a goal-setting framework that helps organizations and
employees set clear, achievable, and relevant performance
goals. SMART stands for:
•Specific: The goal is clear and well-defined, and answers who, what,
where, when, and why.
•Measurable: The goal has clear criteria for success so progress can
be tracked.
•Achievable: The goal is realistic and challenging, but not so difficult
that it demotivates.
•Relevant: The goal aligns with the employee's job and the
organization's goals.
•Time-bound: The goal has a clear deadline to create a sense of
urgency.

When used effectively, SMART performance management can help

improve employee performance, productivity, and engagement. It can
also help managers and employees communicate about performance
 Purposes of Performance Management
System
1. Strategic
◦ There should be a link between the employees’ activities to the organization’s goals.
- what are the strategic goals of the company and how the employees support these goals?
- the source material references are the job description and job analysis. They can look at the

key elements of the job and the critical success factors that can support the strategic goals
of the company.
- the system must be flexible to adjust to some changes when some company goals and
strategies change.
 Purposes of Performance Management
System
2. Administrative
- basis for administrative actions using the performance appraisal such as
salary increases, recognition of high achievers, promotion, demotion, lay-offs,
discipline and termination. This is the reason, performance appraisal is disliked
and avoided.
3. Developmental
- to develop people with potential or overcome shortcomings. Managers often
feel uneasy confronting employees with their shortcomings or weaknesses.
Confronting one’s shortcomings although necessary to improve his
performance, sometimes, if not done properly, could strain such subordinate-
supervisor relationship. That is why it must be handled with focus on
performance improvement.
 Performance Appraisal
Performance Appraisal – a tool that documents an individual employee’s performance.
It is a method by which the job performance of an employee is evaluated
generally in terms of quality, quantity, cost and time. It is the key human
resource function that is closely integrated with compensation, training
and development and other administrative actions.
Performance appraisal is the rating part of the performance management
System. It provides an opportunity for a structured formal interaction
between a subordinate and supervisor that usually takes the form of a
periodic interview , in which the work performance of the subordinate is
examined and discussed, identifying the strengths and weaknesses as well
as ways for improvement and skills development.
Companies use performance appraisals to give employees big-picture feedback on their work and to justify pay
increases and bonuses, as well as termination decisions. They can be conducted at any given time but tend to be
annual, semiannual, or quarterly.