Professional Development Programme on Enriching
Knowledge of the Business, Accounting and Financial Studies (BAFS) Curriculum <Elective Part>
Course Title: Development of a Quality Workforce
Learning Outcomes
• Upon completion of this course, teacher participants should be able to:
• Explain why good employee relations are important
• Describe the parties involved in good employee relationship
• Develop effective practices to facilitate communication in order to enhance good employee relationship
Learning Outcomes
• Develop appropriate disciplinary systems and grievance procedures n order to maintain good employee
relationships
• Describe the collective‐bargaining process
• Apply the various impasse‐resolution techniques such as conciliation, mediation and arbitration in resolving
industrial conflicts
• Develop appropriate orientation programme in order to reduce turnover and socialize new employee
Learning Outcomes
• Define motivation (激勵理論)
• Compare and contrast the following early theories of
motivation and contemporary theories of motivation (激勵理論)
• Maslow’s Hierarchy of Needs Theory (需要階梯理論)
• Herzberg’s Dual‐factor Theory (兩因子理論)
• McGregor’s Theory X and Theory Y (X 理論和 Y 理論)
• Vroom’s Expectancy Theory (期望理論)
• Adam’s Equity Theory (公平理論)
• Apply the said motivation theories to enhance staff efficiency and reduce absenteeism and turnover
• Evaluate current issues in motivating employees
Syllabus in HKDSE Examination
• Employee relations
– Explain the functions of collective bargaining, conciliation, mediation and arbitration in
industrial conflicts (L1 & 2)
– Suggest appropriate orientation and internal communication programmes (L4)
– Explain grievance handling and disciplinary action procedures (L1 & 2)
Syllabus in HKDSE Examination
• Motivation theories
– Apply the motivation theories to enhance staff efficiency and reduce absenteeism (L2 & 4)
• Maslow’s Hierarchy of Needs Theory
• Herzberg’s Dual‐factor Theory
• McGregor’s Theory X and Theory Y
• Vroom’s Expectancy Theory
• Adam’s Equity Theory
Course Outline
• Development of a quality workforce
– Issues related to good employee relations
• Communication programmes
• Well‐defined disciplinary and grievances procedures
• Collective bargaining process
• Appropriate orientation programme
– Application of the 5 motivational theories
– Current issues relating to motivating employees
• Case illustration
Employee Relations
• One of the activities of the maintenance function in HRM
• Maintenance functions:
– Safety and health
– Communications programme – Employee relations (ER)
Importance of Good ER Practices
• Retain high quality, competent and adapted workforce who are willing to maintain their commitment and loyalty to the organisation
S
urvey of turnover rate in HK by HKIHRMEmployee Relations
• Employee relations video in Foxconn.
• What is good ER?
Good ER Practices
Develop 2-way communication channels between management
and employees
Develop 2-way communication channels between management
and employees
Appropriate Orientation Programme Appropriate Orientation Programme Provisions for a fair and
effective disciplinary systems and well-defined
grievance procedures Provisions for a fair and
effective disciplinary systems and well-defined
grievance procedures
Reduce employee
Turnover? Others, e.g.
Employee Assistance &
Others, e.g.
Employee Assistance &
Employers’
Associations Employer
Employees
HKSAR Government
Staff
Association
Trade Unions
Participants in Employee
Relationship
Parties involved in good ER
Effective 2‐way Communication Channels
To keep employees informed of the latest development and let them aware of the new policies and
procedures that would affect them
(DeCenzo and Robbins, Human Resource Management, 10th ed. Wiley 2010)
Essential elements of the communications programmes
Commonly‐found Communication Channels
• Work unit meeting
• Briefing groups
• In‐house seminars
• Joint consultative committee
• Exit interview
• Employee attitude survey
• Suggestion scheme
• Video presentation /videoconferencing
• Written media
¾ Employee handbook
¾ Circulars
¾ Written notices
¾ In‐house newsletters
¾ Staff bulletins
¾ Internet, e‐mail & intranets
Challenge Corner – Q1
• What are the
commonly found
disciplinary problems at workplace?
Suggested Answers ‐ Q1
Commonly‐found disciplinary problems
• Attendance
• On‐the‐job behaviours
• Dishonesty
• Outside activities
• (DeCenzo and Robbins, Human Resource Management, 10th ed. Wiley 2010)
Disciplinary Procedures
Recommended by Labour Department, Hong Kong
Challenge Corner – Q2
Case on Disciplinary Action
Mr. Chan was the Branch Manager of a bank. Paul was one of his
subordinates. Lately he found that Paul was always absent on Monday mornings. Mr. Chan was quite
reluctant to face Paul as he knew that Paul was quite emotional. Mr.
Chan avoided emotional
confrontation with him. What should Mr. Chan do?
Suggested Answers – Q2
Disciplinary Guidelines
• Make sure disciplinary action is corrective rather than punitive
• Progressive discipline
• Hot‐stove rule
(DeCenzo and Robbins, Human Resource Management, 10th ed.
Wiley 2010)
Grievance Procedures
• Survey of organisations providing grievance procedures
• (Ng and Chan, 2000 in Chan, Mak & Bannister, Managing HR in HK, Thomson, 3rd ed. 2002)
Survey Results
• Survey over one hundred and half
respondents, only half made provisions for grievance procedures
Grievance Procedures
Formal complaint of
employee or employees’
dissatisfaction with the company policies and/or inappropriate
management actions.
(Chan, Mak & Bannister, Managing HR in HK,
Thomson, 3rd ed. 2002)
Procedures recommended by Labour Department
Case on Labour Dispute
For the past 11 months, employees of Vitasoy have repeatedly requested for the following:‐
¾Respect union rights
¾Demand for regular meeting
¾Annual wage increase bargaining
¾Sales increased, demand
for reasonable wage scheme
¾Wage increase 7%, share the prosperity
¾Collective bargaining rights
Challenge Corner – Q3 Case on Labour Dispute
The Management refused to recognize the union and meet with the union. They only
acceded to 5% increase in salaries on 18 June 2011.
(Adapted from http://cms.iuf.org/)
a. What are the causes of the labour disputes in this case?
b.Is collective bargaining legally recognized in HK?
c. Discuss how you would handle the labour dispute in this case.
Suggested Answers – Q3a.
• Rate of annual salary adjustment is lower than expected
• Employees are not satisfied with the existing wage scheme and level of pay
• Refusal of meeting with the union to discuss employment issues
Suggested Answers – Q3b.
• In Hong Kong, there are no legal provisions governing the rights of collective bargaining and also the recognition of unions.
Suggested Answers – Q3c.
• No universal formula
• The responsible manager should:‐
– Prepare for the negotiation
• review the company’s position and external factors
• understand the company’s baseline
• assess the possible outcome of the dispute
• identify employees’ representatives
– Start the negotiation with the employees’
representatives using various tactics (collective bargaining process)
Suggested Answers – Q3c.
• If the labour and management cannot reach a satisfactory agreement, consider the
assistance of an objective third party.
• Consider service of conciliatory service provided by the Labour Department.
• The role of the conciliator is go‐between to keep the negotiations going.
Suggested Answers – Q3c.
• If no progress is made, mediator will be
needed to pull together the common ground and advise recommendation on settlement.
• If impasse still exists, arbitration will bring in to render a decision on how to settle the
current labour dispute.
(Adapted from DeCenzo and Robbins, Human Resource Management, 10th ed. Wiley 2010)
Orientation Programme
Outsider‐Insider Passage
Socialization ‐ Familiarization and adaptation
Parties involved:
– HRM Staff – Employees’
supervisors
– Senior Management
Typical Orientation Programme
Case ‐ How orientation programme changed AA Hotel’s customer services?
AA Hotel was renowned for their best customer services to travelling executives.
In the 90s, the hotel recruited their front‐line staff at recruitment fairs. They would select the best candidates and offer higher than the market rate for each position.
These newly recruited staff members would undergo an orientation programme in their first day with the hotel.
They were given an hour’s briefing on the benefits of the hotel. After then, they were put to work knowing nothing about the organization’s mission. Even though, the pay is higher than its competitors, 40% of the new employees quit within the first six months and customers’ satisfaction rate was quite low.
How orientation programme changed AA Hotel’s customer services?
Things have changed now. Customers’ satisfaction rate was high. AA Hotel could do what they had promised to the travelling executives. The check‐in time had been cut from 15 min. to within 3 min. What had they done?
The HR people had re‐engineered their orientation programme. New employees went through a 90‐day orientation. On the 1st day, they attended an eight‐
hour session on what was quality service. New employees were introduced to the AA’s culture, brand and specific role they could make the hotel a success. An extravagant lunch was served as a welcome gesture.
The new employees were also assigned a mentor to work with them for the next three months. The mentor attended the refresher courses together with the new employees to foster commitment to best customer services. At the end of the 90‐day orientation, new employees and mentors were invited to a gala banquet for recognizing their efforts in the past months.
(adapted from HMA Administrator June 2010)
Challenge Corner – Q4
a. What were the problems of the old orientation programme?
b. Why did the new orientation programme help enhancing customers’ satisfaction?
Suggested Answers – Q4a.
Suggested Answers – Q4b.
90‐day orientation programme ‐ communicate
management’s commitment to the new employees, their willingness to invest in them
Mentorship programme – foster commitment to best customer services
Lunch and banquet ‐ the hotel is willing to reward their employees’ efforts to pay attention and learn during orientation.
When new employees know what is expected of them, they can contribute to better organizational
performance thus leading to better customer services and better customers’ satisfaction.
Survey Results by
City University of Hong Kong (2011)
• A survey on employee engagement
• Generation Y had the highest turnover rate among all working groups in different
generations.
• Reasons:
• lack of opportunities for personal growth and development
• Dissatisfied with company policy
Survey Results by
City University of Hong Kong (2011)
• What do the Generation Y employees want?
• Top five factors encouraging Gen Y employees:
• Friendly relationship with colleagues (65.2%)
• Clear understanding of work performance assessment criteria (63.3%)
• Opportunities for personal growth and development (60.8%)
• Opportunities to acquire new knowledge (50.7%)
Motivation
• Latin ‘movere’ = to move
• Why do management concern about employee motivation?
Definition
• Motivation defined as the willingness to exert high levels of effort (努力) to reach
organisational goals (目標), conditioned by the effort’s ability to satisfy some individual need
(需要).
• (Robbins, 7th ed., Fundamentals of Management, Pearson, 2011)
Needs
Maslow Maslow’’ss Hierarchy Hierarchy of Needs
of Needs SelfSelf--act.act.
Esteem Esteem
Social Social Safety Safety
Physiological Physiological
e.g. Food , Drink &
other physical requirements
e.g. Security & protection from physical & emotional harm
Internal esteem, e.g. self- respect & autonomy
External esteem, e.g. status &
recognition
e.g. affection, belongingness &
friendship
e.g. growth &
achieving one’s potential
Lower Order Needs Higher Order
Needs
Motivational Implications
To motivate:
• Understand which level of need the employee is in
• focus on satisfying needs at or above that level
A Hierarchy of A Hierarchy of Work Motivation
Work Motivation SelfSelf--act.act.
Esteem Esteem
Social Social Safety Safety
Physiological
Physiological e.g. Pay
e.g. Seniority plans, union, health insurance, employee assistance plans,
severance pay, pension e.g. Titles, status symbols, promotions, banquets
e.g. Formal &
informal work groups or teams
e.g. Personal growth, realization of
potential
Lower Order Needs Higher Order
Needs
Challenge Corner – Q5
The Management neglected one of Maslow’s need levels in the following work situations.
Based on Maslow’s Hierarchy of Needs
Theory, what motivating technique is likely to work best in each situation.
a. Tom was a supervisor in a factory. He developed a method to cut production time. The factory
manager adopted his method without giving him
credit. Tom was angry. He told his colleague that he
Challenge Corner – Q5
b. There was a rumor of imminent layoffs of some machine operators in a factory. The machine operators were upset and morale was low.
Suggested Answers – Q5a.
• Maslow classified the needs for esteem into two categories:
– internal worth – external esteem
• Tom was looking for esteem need as he wanted prestige for his work done.
• The factory manager should motivate Tom by recognizing his contribution. He should praise Tom for initiating the method.
Suggested Answers – Q5b.
• The machine operators felt upset because there was a possibility of losing their jobs.
Their security need was very strong.
• If it was really a rumor, the factory should
inform employees immediately that there was no immediate layoff plan so that they would feel secure in their jobs.
Suggested Answers – Q5b.
• If it was the real intention that the factory would undergo a downsizing exercise, the Management should formulate a plan and announce it as soon as practicable. If
possible, some workers may be deployed to
other sections. Workers may be given training before deployment.
• At least, let the survivors felt that their jobs were secure.
Activity 1
What is your assumption of human nature?
(Halloran & Benton, Applied Human Relations, P.256)
Douglas McGregor Theory X and Y
Contrast with Maslow’s Theory
Maslow’s Hierarchy of Needs Theory
McGregor’s Theory X and Theory Y
Higher order needs Theory Y
Lower order needs Theory X
To motivate Theory Y
workers To motivate
Theory Y workers
Good Group Relations Good Group
Relations
Participative decision making
Participative decision making
Responsible and Challenging jobs
Motivational Implications
To motivate Theory X
workers To motivate
Theory X workers
Attractive pay package Attractive pay
package
Rules and Regulations to control and
monitor
Motivational Implications
Training and development
Challenge Corner – Q6
• What kind of management style is McDonald’s chain? What kind of assumptions will lead to this type of management style?
Suggested Answers – Q6
• Dominant X theory
• Success of theory X in progress:
• Strict company policy of Quality, Service, and Cleanliness.
• Rigid training programs of potential managers
• Uniform structure of each franchise
• Production line method of serving
• Automatic program of inventory
(Adapted from Halloran & Benton, Applied Human Relations, Prentice‐Hall)
Activity 2
What do people want from their job?
(Robbins, Organizational Behaviour, 9
thed. P. 180)
Add up each column. Did you select hygiene or motivating
factors as being more important
to you?
Frederick Herzberg’s Two‐factor Theory
• Also called Motivation‐Hygiene Theory
• Intrinsic factors relate to job satisfaction Extrinsic factors relate to job dissatisfaction
• Motivators (激動因子) (job satisfiers) are related to job content and hygiene factors (保健因子)
(job dissatisfiers) are associated with job context
(Adapted from Robbins, Organizational Behavior, 11th ed., Prentice‐Hall, 2011)
Herzberg’s Two‐Factor Theory
Hygiene Factors
Company policy and administration
Quality of supervision
Relationship with supervisor, peers &
subordinates
Working conditions
Salary
Personal life
Security and status
Motivators
Achievement
Recognition
Work itself
Responsibility
Advancement
Growth
p.295
滿意 沒有滿意 不滿意 沒有不滿意
Contrast with Maslow’s and McGregaor’s Theories
Maslow’s Hierarchy of Needs Theory
McGregor’s Theory X and Theory Y
Herzberg’s Two Factor Theory
Higher order needs
Theory Y Motivators
Lower order needs
Theory X Hygiene Factors
Motivational Implications
• Hygiene factors are necessary to maintain
peaceful working environment for employees.
• To motivate:
– job content must be re‐designed to provide opportunities for achievement, recognition,
responsibility and advancement. (Job enrichment)
Challenge Corner – Q7
• According to Herzberg’s Two‐Factor Theory, how could Management motivate
professionals?
Suggested Answers – Q7
• Professionals are typically different from nonprofessionals.
• The main motivator in their job is the work itself.
Suggested Answers – Q7
• Management should motivate professionals by providing them with new assignments and challenging projects. Examples:‐
• Give them autonomy in their work (work itself
& responsibility)
• Reward them with educational opportunities (advancement & growth)
• Reward them with recognition (recognition)
(Adapted from Robbins, DeCenzo & Coulter , Fundamentals of Management,
Vroom’s Expectancy Theory of Motivation
• Peter is the Assistant Branch Manager of an international bank. He will soon get married and wants to buy a flat as his new home
(individual goal).
Vroom’s Expectancy Theory of Motivation
• His supervisor tells him
that there will be a vacant position in a branch at the end of this year. If he
puts more efforts in his work and achieves a
certain level of
performance, he may have a chance for the position.
Promotion Chance!
If promoted, I can buy a new flat!
Vroom’s Expectancy Theory of Motivation
• Peter believes that if he works hard (individual effort) he can achieve superior performance level (individual performance) to be promoted to a Branch Manager.
• After promoting to the Branch Manager, he can get extra pay (organisation rewards) and that extra rewards can achieve his personal goals of buying a new home (achieving
individual goal).
Vroom’s Expectancy Theory of Motivation
• It states that an individual tends to act on the basis of the expectation that the act will be followed by a given outcome and the
attractiveness of that outcome to the individual.
(Adapted from Robbins, DeCenzo & Coulter , Fundamentals of Management, 7th ed.
©Prentice Hall, 2011)
Expectancy Theory
3. Rewards-personal goals relationship 1. Effort-performance relationship
2. Performance-rewards relationship Individual
Individual Effort Effort
Individual Individual Performance Performance
Individual Individual
Goals Goals
Organizational Organizational
Rewards Rewards
1 2
3
Adapted from Robbins, DeCenzo & Coulter ,
Fundamentals of Management, 7thed. ©Prentice Hall,
Expectancy 期望值
Instrumentality 工具值
Valence 效價/數價
Motivational Implications
• perceptions will determine employee’s level of effort.
• It emphasizes rewards.
• To motivate:
– rewards offered will match what employees want.
– understand which type of reward is attractive – Communicate expectation to employees and
implementing fair appraisal system
Challenge Corner – Q8
• Referring to Peter’s case in the bank, Peter had doubts in the performance appraisal system. Based on Vroom’s Expectancy Theory, would Peter be motivated to put more effort in his work?
Suggested Answers – Q8
• Even if Peter thought that he could put in extra
effort and attain a certain level of performance, he had doubts in the criteria that will be used to judge his performance.
• Therefore the performance‐rewards relationship was broken, Peter might not be motivated.
• In order to be motivating, employees should know what is expected of them and how they will be
appraised.
Adams’ Equity Theory
• Employees tend to make comparison with others and inequalities will affect the efforts they put in their work. When they felt inequalities, they will
‘strive’ to restore equalities.
• Employees perceive what they get from a job
situation (outcomes) in relation to what they put into it (inputs) and then compare their inputs‐
outcome ratios with those of the relevant others (persons, systems or selves).
(Adapted from Robbins, DeCenzo & Coulter , Fundamentals of Management, 7th ed.
©Prentice Hall, 2011)
Mr. Wong – employee (A)
Mr. Chan – the referent (B)
Outcomes A/Inputs A = Outcomes B/Inputs B
Equity
Outcomes A/Inputs A > Outcomes B/Inputs B
Inequity (overrewarded)
Adams’
Equity Theory
Adapted from Robbins, DeCenzo &
Coulter ,
Fundamentals of Management, 7th ed. ©Prentice Hall, 2011
Motivational Implications
To motivate:
• justice inside the organization on the whole
• Fairness in the amount of rewards and allocation of rewards
• Fairness in the process
• Treat and respect employees in a fair and impartial manner
Challenge Corner – Q9
• Referring to Peter’ case in the bank, how could the managers improve the overall equity in the bank?
Suggested Answers – Q9
• Organizational justice: an overall perception of what is fair in the workplace
• Distributive justice: perceived fairness of the amount and allocation of rewards among employees e.g.
distribution of bonus
• Procedural justice: Employees are sensitive to fairness of the process used to determine the outcome, e.g
appraisal system
• Interactional justice: Employees are sensitive to how one is treated with dignity and respect
(Adapted from Robbins, Organizational Behavior, 11th ed., Prentice‐Hall, 2011)
Recognize individual differences
Check the System for
Equity
Link rewards to
Performance
Allow Employees to participate in decisions that
affect them Motivation
Job satisfaction Employee Productivity
General guidelines:
Implications for Managers
Recognize individual Differences (Needs Theories)
Check the System for
Equity
(Equity Theory)
Link rewards to
Performance
(Expectancy Theory)
Allow Employees to participate in decisions that
affect them (Theory Y)
(Two-factor Theory) Motivation
Employee productivity Job satisfaction
Applications of the Theories learnt
Recognize individual Differences e.g. Job redesign
Flextime
Flexible Benefits
Check the System for
Equity
e.g. Fair salaries structure Fair appraisal system Performance-based rewards
Link rewards to
Performance e.g.
Variable-pay programme (浮薪制) such as bonus,
Allow Employees to participate in decisions that
affect them
e.g. Participative mgt Rep. participation
Quality Circle (品質管制小組) Motivation
Employee productivity Job satisfaction
Examples in working
environment
*ESOP= Employee Stock Ownership Plan
Last but not the least
Challenge Corner – Q10
• What role would money play in the following motivation theories?
• Maslow’s Hierarchy of Needs Theory
• Herzberg’s Two‐factor Theory
• Vroom’s Expectancy Theory
• Adam’s Equity Theory
Suggested Answers – Q10
• Maslow’s Hierarchy of Needs Theory
– Physiological needs, security need for providing food and shelter and self‐esteem need for a sense of self‐worth
• Herzberg’s Two‐factor Theory – Hygiene factor
• Vroom’s Expectancy Theory
– employees perceive that the money reward is linked to their effort level
• Adam’s Equity Theory
– It is a measure of fairness
(Adapted from Robbins, DeCenzo & Coulter , Fundamentals of Management, 7th ed.
Challenge Corner – Q11
• How can managers motivate minimum wage employees?
HK$28
Suggested Answers – Q11
• Many managers believe that money is the only motivator
• Employee Recognition programme – Employee of the year
– Employee award ceremonies – The power of praise
• Job Redesign
– Job enrichment – Job rotation
– Job enlargement
(Adapted from Robbins & DeCenzo, Fundamentals of Management, 6th ed. ©Prentice Hall, 2008)
Challenge Corner – Q12
• Case Study Questions
Challenge Corner – Q13
• End of coursework ‐ MC Questions
Reference
• A survey on employee engagement, City University of Hong Kong 2011 in Hong Kong Institute of Human Resource Management website news
digest
• BAFS Curriculum and Assessment Guide (S4‐6), Curriculum Development Council and HK Examinations and Assessment Authority, 2007
• Chan, A.W., Mak, W.M. and Bannister, B.J., Managing Human Resources in Hong Kong, 3rd ed., Thomson 2002
• Chan, R., Human Resources Management, Pearson‐Longman, 2010
• DeCenzo, D.A. and Robbins, S.P., Human Resource Management, 10th ed.
Wiley 2010
• Experience Sharing in Teaching: Management Module: HRM & Marketing, Hong Kong Association for Business Education
• Halloran, J. and Benton, D., Applied Human Relations, 3rd ed., Prentice‐
Reference
• HKAL Examination Report and Question Papers, HK Examination Assessment Authority
• http://hma.hotelworldasia.com, HMA Administrator 08 June 2010
• http://cms.iuf.org/?Q=node/950, Vitasoy Australia workers support fight for union rights in Hong Kong (9‐6‐2011)
• http://edblog.hkedcity.net/te_bafs_e
• http://hk.apple.nextmedia.com (Foxcom news, May & June 2010)
• http://ihrmenews.netsoft.net/enewspreview.php?ecard_id=2901, Hong Kong Institute of Human Resource Management ‐ Surveys and News Digest
• http://www.businessballs.com
• http://www.edb.gov.hk/index.aspx?nodeID=7513&langno=1
• http://www.keewah.com
Reference
• Robbins & DeCenzo , Fundamentals of Management, 6th ed., Prentice Hall, 2008
• Robbins S.P., DeCenzo, D.A. & Coulter, M. , Fundamentals of Management, 7th ed., Prentice Hall, 2011
• Robbins, S.P. and Judge, T.A., Organizational Behavior, 11th ed., Prentice Hall, 2009
• Robbins, S.P., Essentials of Organizational Behavior, 10th ed., Pearson Prentice‐Hall, 2010
• Robbins, S.P., Organizational Behavior, 9th ed., Prentice Hall, 2001
• Tse, W.L. & Ho, P.K.W., BAFS in the New World, Vol.5B, Pilot Publishing, 2010
• Woo, S.C.A, BAFS Exam Guide for HKDSE Business Management Module, Volume 2, Manhattan, 2010
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