Human Resource Management: Motivation, Leadership, and Employment Contracts
Functions of Human Resource Management
It is important to analyze how to motivate employees to achieve goals. Assessment systems of rewards and incentives should be established. Motivation is necessary for the study of leadership (formal and informal levels) and the development of appropriate communication processes. Human capital is a competitive advantage, with components of competence including knowledge, skills, interests, motivation, and willingness to use resources. People make different organizations; they add value to the company (few are high-level performers), and they are inimitable. Human Resources require acquisition skills for skilled workers.
Motivation
A person is motivated when a need must be met. Maslow’s Hierarchy of Needs covers five hierarchical levels: physiological, security, social (belonging to a group), esteem (recognition), and self-realization. Only when lower needs are satisfied do higher needs arise.
Herzberg’s Two-Factor Theory distinguishes between:
- Hygiene factors (that prevent dissatisfaction): salary, working conditions, etc.
- Motivating factors: achievement, recognition, etc.
McGregor’s Theory X and Theory Y:
- Theory X: Assumes people dislike work, lack ambition, avoid responsibility, and need to be directed. Leaders with this view adopt an authoritarian style.
- Theory Y: Assumes people find satisfaction in work, make commitments, and seek improvement. Leaders with this view adopt a participative style, motivate, and trust their employees.
Ouchi’s Theory Z: Principles for motivating workers include a spirit of consensus, group loyalty and trust, collective responsibility, and learning from experience.
Leadership
Leadership is a form of power and influence on the behavior of others. Five sources of power are possible: reward, coercion, legitimate authority, expertise, and reference. Classic leadership styles include:
- Autocratic: Leaders impose decisions.
- Democratic: Leaders encourage participation in decision-making and promote cooperation.
- Laissez-faire: Leaders provide minimal direction.
Components of good leadership include the ability to use power responsibly and effectively, understanding people and motivations, inspiring ideas and feelings in others, and generating a favorable climate.
Communication
To be efficient, communication must be important for the receiver, consistent, clear, and interference should be considered. Factors to consider include the channel, the code used (which can cause distortion), and attitude discrepancies between the transmitter and receiver.
Types of internal communication:
- Vertical:
- Ascending: Information transmission from lower to higher levels for control purposes, usually in decentralized and democratic organizations.
- Descending: Orders and directives from higher to lower levels.
- Lateral:
- Horizontal: Communication between individuals at the same level, not necessarily within the formal organizational structure.
- Diagonal: Communication between individuals at different levels, often informal.
Workplace Analysis
Workplace analysis distinguishes between:
- Job description: Name, position in the organization, and tasks.
- Job specification: Position, responsibilities, and requirements.
Analysis allows for job inventory development and recruitment: identifying potential employees who meet requirements and attracting enough candidates for selection. Recruitment sources may be internal or external (e.g., employment agencies, job boards). Personal selection involves choosing suitable candidates, predicting their behavior and performance (based on training, skills, and motivation/interest). This requires analyzing job requirements and candidate conditions, comparing them to an ideal profile, and selecting the best match. Candidate evaluation methods include interviews and psychological assessments.
Staff Training: Adaptation to the company, integration, and environmental change require continuous training.
Contracts
A contract is an agreement of wills in which a person with legal capacity voluntarily undertakes to perform work for an organization (employer) in exchange for remuneration. Elements of a contract include consent, object (service provision and remuneration), duration, form (verbal or written), working hours, and probationary period (usually 2-6 months).
Types of contracts:
- Indefinite: Unlimited duration, full-time (most common: ordinary employment contract). The state grants incentives to hire people with limited market access.
- Fixed-term: Limited duration (e.g., interim contracts for replacement, specific work or service, or circumstantial production).
- Part-time: Fewer hours, including partial retirement and relief contracts.
- Training: Gain experience/training. In practice (training for someone with existing knowledge, typically 6 months to 2 years after studies) and formal training (for individuals without qualifications or experience, 6 months to 2 years, with theoretical and practical training, minimum 15% of the day for training).
Workers’ Rights:
- Professional: To the actual occupation of the workplace, promotion, training, and fair remuneration.
- Collective Action: To join unions, collective bargaining, and strike.
- Personal: Physical integrity, safety and hygiene, non-discrimination, and respect for privacy.
Workers’ Duties: Respect employer’s orders, fulfill obligations, observe safety and hygiene measures, and contribute to improved productivity.
Salary: Right to receive payment with a payroll, with a periodicity of no more than one month and two extra payments a year. The payroll reflects the basic salary and allowances; the sum is the gross wage, from which social security contributions and income tax are deducted to arrive at the net salary.
Working Hours: No more than 40 hours a week and 9 hours per day, with the right to a rest day and a half. The work calendar includes the annual schedule and working days, holidays, etc. Right to annual leave (minimum 30 days). If a worker loses their job, they have the right to unemployment benefits if they meet the requirements (70% for 6 months, then 60%).
Representation of Employers and Employees
- Personnel Delegates: In companies with fewer than 50 employees, one delegate (under 30 employees) or three (30-50 employees).
- Works Council: In companies with more than 50 employees, the number of members is proportional (between 5-75).
- Unions: Defend workers’ interests and conditions, act as spokespersons with employers and government.
- Employers’ Associations: Defend employers’ collective interests; the CEOE is the spokesperson with unions and government.
Collective Bargaining: Unions and employers negotiate agreements (collective agreements) regulating working conditions, which are legally binding. These agreements cover economic aspects (wages, overtime), labor aspects (working day, vacations, job security), etc. The agreement must be in writing and designate a joint committee (representatives of both parties) for resolving discrepancies. If the agreement affects a single company, the employer or representatives meet with staff representatives or the works council. If it affects multiple companies, the most representative trade unions and business associations representing at least 10% of the employers involved participate.
Collective Conflict: Discrepancies in standards or conflicts of interest may arise. In conflicts of interest, external intervention can be requested, taking the form of mediation, arbitration, or conciliation to reach an agreement. Workers have the right to strike, suspending their basic obligations (labor) and the employer’s obligations (pay), while maintaining minimum services. The employer may adopt a lockout, closing the workplace (without work or pay, suspending the contract).