A86012 Management and Principles of Accoun:ng (2016/2017) Session - - PowerPoint PPT Presentation

A86012 Management and Principles of Accoun:ng (2016/2017)

Session 12 Human Resources

Paul G. Smith B.A., F.C.A

SESSION OBJECTIVES & OVERVIEW

2 A 86012 Management and Principles of Accoun:ng

Course Overview

• 1. What is business
• 14. Accoun:ng glossary
• 2. Types of business
• 15. Introduc:on to financial accoun:ng
• 3. Review session
• 16. Accoun:ng for business transac:ons
• 4. Management
• 17. Recording transac:ons, journal and ledger
• 5. Opera:ons
• 18. Recording owner’s contribu:ons & financing
• 6. Review session
• 19. Review session
• 7. Marke:ng
• 20. Recording long-lived assets and investments
• 8. Marke:ng strategy
• 21. Recording purchases
• 9. Review session
• 22. Review session
• 10. Finance
• 23. Recording sales and employee compensa:on
• 11. Financial management
• 24. Adjus:ng and closing entries
• 12. Human resources
• 25. Adjus:ng and closing entries …con:nued
• 13. Exam
• 26. Cases and exercises
• 27. Exam

3 A 86012 Management and Principles of Accoun:ng

Session Objec:ves

4 A 86012 Management and Principles of Accoun:ng

At the end of this session students will be able to define Human Rela*ons and ar3culate why this is important, summarize early studies related to employee mo3va3on including theories X, Y and Z and strategies used to manage employee mo*va*on. Students will be able to define human resource management and processes for recruitment, performance appraisal, employee turnover, compensa*on

• p*ons, dealing with unions and the importance of diversity.

Students will understand the importance of people sa*sfac*on and employee engagement.

Overview of Session 12

• Guest Speaker: Stefano Lai, Director of

Communica:ons, Ferrari N.V.

• The Nature of Human Rela:ons: mo:va:on,

theories of mo:va:on, strategies for mo:va:ng

• Managing Human Resources: planning,

recrui:ng, developing, compensa:ng, unions, diversity, trends

• People Sa:sfac:on and engagement

5 A 86012 Management and Principles of Accoun:ng

Session 12 Overview

Mins Session objec:ves and outline 5 Recap of key points from session 11 – Working capital management, capital budge:ng and investment appraisal, long-term financing, investor rela:ons and measures that macer 15 Employee mo:va:on: The nature of human rela:ons, the mo:va:on process, historical perspec:ves, strategies for mo:va:ng employees. Best companies to work for. 35 Managing human resources: Human resources management, planning, recrui:ng and selec:ng, workforce development, compensa:on, dealing with unions, the future of HR, diversity 35 People sa:sfac:on and engagement: The importance of employee sa:sfac:on, employee sa:sfac:on surveys, people engagement surveys. 30 Required reading and research session 13 5 Overview of session 13 – Exam 5 Summary and valida:on 5 135

6 A 86012 Management and Principles of Accoun:ng

RECAP OF SESSIONS 10 & 11– FINANCE & FINANCIAL MANAGEMENT

7 A 86012 Management and Principles of Accoun:ng

Recap Session 10

The accoun:ng process: the nature of accoun:ng, accountants, the accoun:ng equa:on Financial accoun:ng: Accoun:ng standards, double entry bookkeeping, the accoun:ng cycle, the financial statements Management accoun:ng: Budge:ng and forecas:ng, budgetary control, cost accoun:ng for decision taking, fixed and variable costs, break-even analysis, variance analysis Audit and control: Audit commicees, supervisory boards, repor:ng on internal control (COSO), internal audit external audit

8 A 86012 Management and Principles of Accoun:ng

Recap of Session 11

• Financial management

– Working capital management: Managing current assets and liabili:es – Capital budge:ng and investment appraisal: Managing fixed assets, assessing risk, pricing long- term money, IRR, NPV; Payback – Long-term financing: Financing op:ons using long- term debt or owners’ equity – Investor rela:ons: Stock markets, communica:ng with investors, measures that macer

9 A 86012 Management and Principles of Accoun:ng

MOTIVATING THE WORKFORCE

10 A 86012 Management and Principles of Accoun:ng

Nature of Human Relations

9-11

Human Relations

• The study of the behavior of individuals and

groups in organizational settings

Motivation

• An inner drive that directs a person’s behavior

toward goals

• A goal is the satisfaction of some need, and a

need is the difference between a desired state and an actual state

Motivating the Workforce

9-12

Human relations is concerned with the needs of employees, their goals and how they try to achieve them, and the impact of those needs and goals on job performance Motivating employees to stay engaged is a key responsibility of management

Engagement involves emotional involvement and

commitment

Being engaged results in carrying out the

expectations and obligations of employment

The Motivation Process

9-13

Morale

9-14

A prominent aspect of

human relations

High morale

contributes to high levels of productivity, high returns to stakeholders, and employee loyalty

Morale

• An employee’s attitude toward his or her job, employer, and

colleagues

9-15

Morale

High morale contributes to:

• High levels of

productivity

• High returns to

stakeholders

• Employee loyalty

Low morale may cause:

• High rates of

absenteeism

• Absenteeism can cost

a company as much as 36% of payroll

• High rates of employee

turnover

Morale Boosters

9-16

Respect Positive organizational culture Appreciation Adequate compensation Promotions A pleasant work environment Involvement

Tips for the Leader about Employee Motivation

9-17

Rewards

9-18

• The personal satisfaction and enjoyment

that you feel after attaining a goal

• In this class, you may feel personal

enjoyment in learning how business works and aspire to have a career in business or to operate your own business

• ne day

Intrinsic Rewards

• Benefits and/or recognition received from

someone else

• In this class, your grade is extrinsic

recognition of your efforts and success in the class

Extrinsic Rewards

Top 10 Ways to Retain Great Employees

9-19

Mo:va:on

A 86012 Management and Principles of Accoun:ng 20

Historical Perspectives on Employee Motivation

9-21

• Theory suggesting that money is the sole

motivator for workers

• Early 20th century
• Frederick W. Taylor and Frank & Lillian

Gilbreth

• Analyzed how workers perform specific

work tasks in an effort to improve the employees’ productivity

• Led to the application of scientific

principles to management

Classical Theory of Motivation

Classical Theory of Motivation

9-22

To improve productivity managers should:

Break down each job into its component tasks

(specialization)

Determine the best way to perform each task Specify the output to be achieved by a worker

performing the task

Incentives motivate employees to be more productive

Link workers’ pay directly to their output

Historical Perspectives on Employee Motivation

9-23

• 1924-1932 at the Hawthorne Works Plant
• Marks beginning of concern for human

relations in the workplace

• Elton Mayo:
• Postulated that physical conditions in

workplace stimulate productivity

• Productivity increased regardless of the

physical conditions (the Hawthorne effect)

• Findings show that social and

psychological factors could significantly affect productivity and morale

The Hawthorne Studies

Hawthorne Studies

9-24

Working condi:ons are important However, the Hawthorne studies, which were carried

• ut at the electric company

shown here beginning in the 1920s, found that the workers became more produc:ve because of the acen:on they received— regardless of their working condi:ons.

Job Aspects Important to Employee Satisfaction

9-25

Aside from salary, which

• ne of the

following aspects of your job is most :ed to your sa:sfac:on?

9-26

Theories

• f

Employee Motivation

Maslow’s Hierarchy of Needs

Herzberg’s Two-Factor Theory McGregor’s Theory X and Theory Y Theory Z Variations on Theory Z Equity Theory Expectancy Theory

Maslow’s Hierarchy of Needs

9-27

Maslow’s Hierarchy

• A theory that arranges

the five basic needs of people—physiological, security, social, esteem, and self- actualization—into the

• rder in which people

strive to satisfy them

Maslow’s Hierarchy of Needs

9-28

Physiological Needs

• The most basic human needs to be satisfied—water, food,

shelter, and clothing

Security Needs

• The need to protect oneself from physical and economic harm

Social Needs

• The need for love, companionship, and friendship—the desire

for acceptance by others

Esteem Needs

• The need for respect—both self-respect and respect from
• thers

Self-Actualization Needs

• The need to be the best one can be; at the top of Maslow’s

hierarchy