Chapter 9

Incentives motivate employees to be more

Human Relations The study of the behavior productive
Link
of individuals and groups in organizational
workers pay directly to their output
settings
Maslows Hierarchy of Needs
Motivation
Physiological Needs; The most

An inner drive that directs a

basic human needs to be satisfied
persons behavior toward goals
water, food, shelter, and clothing

A goal is the satisfaction of

Security Needs; The need to
some need, and a need is the difference
protect oneself from physical and
between a desired state and an actual
economic harm
state

Social Needs; The need for

Motivating the Workforce
love, companionship, and friendshipthe

Human relations is concerned

desire for acceptance by others
with the needs of employees, their goals
Esteem Needs; The need for
and how they try to achieve them, and the
respectboth self-respect and respect
impact of those needs and goals on job

from others
performance
Self-Actualization Needs; The

Motivating employees to stay

need to be the best one can be; at the top
engaged is a key responsibility of
of Maslows hierarchy
management
Herzbergs Two-Factor Theory

Engagement
Hygiene Factors; Aspects of
involves emotional involvement and
Herzbergs theory of motivation that focus
commitment
on the work setting and not the content of

Being
engaged
the work; these aspects include adequate
results in carrying out the expectations
wages, comfortable and safe working
and obligations of employment
conditions, fair company policies, and job
Morale An employees attitude toward his or
security; company policies; supervision;
her job, employer, and colleagues
working condition; salary;

Motivational Factors; Aspects

prominent aspect of human relations
of Herzbergs theory of motivation that

High
focus on the content of the work itself;
morale contributes to high levels of
these aspects include achievement,
productivity, high returns to stakeholders,
recognition, involvement, responsibility,
and employee loyalty
and
advancement;
achievement;
High morale contributes to:
recognition;work itself

High levels of productivity

Strategies for Motivating Employees

High returns to stakeholders

Behavior Modification; Changing behavior

Employee loyalty
and encouraging appropriate actions by
Low morale may cause:
relating the consequences of behavior to the

High rates of absenteeism

behavior itself

Absenteeism can cost a

Job Rotation; Movement of employees from
company as much as 36% of payroll
one job to another in an effort to relieve the

High
rates
of
employee
boredom
often
associated
with
job
turnover
specialization
Morale Boosters : Respect,Appreciation,
Job Enlargement; The addition of more
Promotions,Involvement,Positive
organitasks to a job instead of treating each task as
zational culture, Adequate compensation, A
separate
pleasant work environment
Job Enrichment; The incorporation of
Intrinsic Rewards
motivational factors, such as opportunity for

The personal satisfaction and

achievement, recognition, responsibility, and
enjoyment that you feel after attaining a
advancement, into a job
goal
Flextime; A program that allows employees

In this class, you may feel

to choose their starting and ending times,
personal enjoyment in learning how
provided that they are at work during a
business works and aspire to have a
specified core period
career in business or to operate your own
Compressed Workweek; A four-day (or
business one day
shorter) period during which an employee
Extrinsic Rewards
works 40 hours

Benefits and/or recognition

Job Sharing ; Performance of one full-time
received from someone else
job by two people on part-time hours

In this class, your grade is

extrinsic recognition of your efforts and
success in the class
Chapter 10
Classical Theory of Motivation
Human Resource Management (HRM); All
To improve productivity managers should:
activities involved in determining an

Bre
organizations human resources needs, as
ak down each job into its component
well as acquiring, training and compensating
tasks (specialization)
people to fill those needs

Det
Planning for Human Resources Needs
ermine the best way to perform each task
Job
Description; A formal, written

Spe
explanation of a specific job, usually
cify the output to be achieved by a worker including job title, tasks, relationship with
performing the task
other jobs, physical and mental skills

required, duties, responsibilities and working

conditions
Job Specification; A description of the
qualifications necessary for a specific job, in
terms of education, experience, and personal
and physical characteristics
Recruiting and Selecting New Employees
Recruiting; Forming a pool of qualified
applicants from which management can

select employees
Selection; The process of collecting
information about applicants and using that
information to make hiring decisions
Recruiting and Selecting New Employees
The selection process starts with the
application
Goal weed out unqualified
applicants
Applications
supply
basic
information but also reveal clues about
the applicant
The next phase of the selection process is
the interview
Through
interviews,
management obtains detailed information
about the applicants experience and
skills and their reasons for changing jobs

The interviewer can answer the

applicants questions about the job,
compensation,
working
conditions,
policies, company culture and so on

An interviewees questions may

be as revealing as their answers
Before making a job offer, the company
should check references; including verifying
educational background and previous work
experience

An Internet search is often

done to determine social media or other
public activities

Public companies are likely to

do a more extensive background search
Reference checking is important as
applicants may misrepresent themselves on
their applications and resumes
Managers must be aware of legal restraints
and regulations in order to avoid legal
problems
HRM LAW
Title VII of the Civil Rights Act; Prohibits
discrimination in employment and created
the
Equal
Employment
Opportunity
Commission
EEOC; A federal agency dedicated to
increasing job opportunities for women and
minorities and eliminating job discrimination
based on race, religion, color, sex, national
origin or handicap
Other laws affecting HRM include:
Americans with Disabilities Act (ADA);
Prevents discrimination against persons with
disabilities
Age Discrimination in Employment Act;
Focuses on discrimination against those 40
years and older
Equal Pay Act; Mandates that men and
women who do equal work receive the same
wage; Wage differences are acceptable if
based on seniority, performance or
qualifications
Developing the Workforce
Orientation; Familiarizing newly hired
employees with fellow workers, company

procedures and the physical properties of the

company
Training;

Teaching employees to do
specific job tasks through either
classroom development or on-the-job

experience
On-the-job
training workers learn by actually
performing the tasks of the job
Classroom
training teaches employees with
lectures, conferences, video and Webbased instruction
Development; Training that augments the
skills and knowledge of managers and
professionals
Performance appraisal is crucial as it
Give
s employees feedback on how they are
doing and how to improve
Prov
ides
a
basis
for
determining

compensation
Gen
erates information about the quality of the
firms selection, training and development
activities.

Performance appraisals may be objective or

subjective
Objective
appraisal is quantifiable; such as how
many of something was produced or the
score on a test
One
popular
subjective appraisal method is ranking
employees against each other
Another method
is the 360-degree feedback system,
providing feedback from a panel of
superiors, peers and subordinates
Turnover;
Occurs
when
employees quit or are fired and must be
replaced by new employees
Promotion; An advancement
to a higher-level job with increased
authority, responsibility and pay
Transfer; A move to another
job within the company at essentially the
same level and wage
Compensating the Workforce
Salary; A financial reward calculated on a
weekly, monthly or annual basis
Bonuses; Monetary rewards offered by
companies for exceptional performance as
incentives to further increase productivity
Profit Sharing; A form of compensation
whereby a percentage of company profits is
distributed to the employees whose work
helped to generate them
ESOPs; Employee stock ownership plans
distribute company stock to employees as a
form of profit sharing
If labor and management still fail to reach
an agreement:
Conciliation; Happens when a
third party is brought in to keep the two
sides talking
Mediation; The third partys
role is to suggest or propose a solution to
the problem
Arbitration; The settlement of
a dispute by a third party whose solution
is legally binding and enforceable

Chapter 11
Marketing A group of activities designed to
expedite
transactions
by
creating,

distributing, pricing, and promoting goods,

services, and ideas
Create value by
allowing individuals and organizations to

obtain what they need and want

Other functional
areas of the business (operations,
finance, and all areas of management)
must be coordinated with marketing

decisions
Exchange The act of giving up one thing
(money, credit, labor, goods) in return for
something else (goods, services, or ideas)
Marketing Activities ;Buying; Selling;
Transporting; Storing; Grading; Financing;
Marketing Research; Risk Taking
Value A customers subjective assessment of
benefits relative to costs in determining the
worth of a product
The Marketing Concept
Determining customers true
needs is increasingly difficult because no
one fully understands what motivates
1.
people to buy things
A business must also achieve
its own objectives:
2.

Boosting
productivity

Reducing costs 3.

Achieving
a
percentage of a specific market
A firm must have good
4.
information about what consumers want,
adopt a consumer orientation, and
coordinate its efforts throughout the entire
organization
5.
Market Orientation An approach requiring
organizations to gather information about
customer needs, share that information
throughout the firm, and use that information
to help build long-term relationships with
customers
Marketing Strategy A plan of action for
developing,
pricing
distributing,
and
promoting products that meet the needs of
specific customers
Has two major components:

Selecting a target
market

Developing
an
appropriate marketing mix to satisfy
that target market
Market A group of people who have a need,
purchasing power, and the desire and
authority to spend money on goods,
services, and ideas
Target Market A specific group of consumers
on whose needs and wants a company
focuses its marketing efforts
Total-Market Approach An approach
whereby a firm tries to appeal to everyone
and assumes that all buyers have similar
needs
Market Segmentation A strategy whereby a
firm divides the total market into groups of
people who have relatively similar product
needs
Market Segment A collection of individuals,
groups, or organizations who share one or
more characteristics and thus have relatively
similar product needs and desires
Concentration Approach

A
market
segmentation
approach whereby a company develops
one marketing strategy for a single
market segment
Porsche directs all its marketing
efforts toward high-income individuals
who want to own high-performance
vehicles
Multisegment Approach
A
market
segmentation
approach whereby the marketer aims its
efforts at two or more segments,
developing a marketing strategy for each
Raleigh bicycles has designed
separate marketing strategies for racers,
tourers, commuters, and children
Niche Marketing Is a narrow market
segment focus when efforts are on one
small, well-defined group that has a unique,
specific set of needs
For a firm to successfully use a concentration
or multisegment approach to market
segmentation:
Consumers
needs for the product must be
heterogeneous
The
segments
must be identifiable and divisible
The total market
must be divided in a way that allows
estimated sales potential, cost, and profits
of the segments to be compared
At
least
one
segment must have enough profit
potential to justify developing and
maintaining a special marketing strategy
The firm must be
able to reach the chosen market segment
with a particular market strategy
Marketing Mix The four marketing activities
product, price, promotion, and distribution
that the firm can control to achieve specific
goals
within
a
dynamic
marketing
environment
A product whether a
Good

A
physical entity you can touch (a car,
computer, or adopted kitten)
Service The
application of human and mechanical
efforts to people or objects to provide
intangible benefits to customers (Air
travel, dry cleaning, or haircuts)
Idea Can be a
concept, philosophy, image, or issue
(attorney advise or political parties)
Is a complex mix of tangible and intangible
attributes that provide satisfaction and
benefits
Price A value placed on an object exchanged
between a buyer and a seller
Distribution Making products available to
customers in the quantities desired
Promotion
A
persuasive
form
of
communication that attempts to expedite a
marketing
exchange
by
influencing
individuals, groups, and organizations to
accept goods, services, and ideas
Marketing Research A systematic, objective
process of getting information about potential
customers to guide marketing decisions
Primary Data

Marketing information that is

observed, recorded, or collected directly
from respondents
Mystery shoppers, surveys,
and focus groups
Passive
observation
of
consumer behavior and open-ended
questions techniques
Secondary Data
Information that is compiled
inside or outside an organization for some
purpose other than changing the current
situation
Information compiled by the
U.S.
Census
Bureau
and
other
government agencies, databases created
by marketing research firms, as well as
sales and other internal reports
Buying Behavior The decision processes
and actions of people who purchase and use
products
Perception
The process by
which a person selects, organizes, and

interprets information received from his or

her senses

Motivation
Inner drive that
directs a persons behavior toward goals
Learning

Changes in a
persons behavior based on information
and experience
Attitude
Knowledge
and
positive or negative feelings about
something
Personality
The organization
of an individuals distinguishing character
traits, attitudes, or habits
Social Roles
A
set
of
expectations for individuals based on
some position they occupy
Reference Groups

Groups
with
whom buyers identify and whose values
or attitudes they adopt

Social Classes
A
ranking
of
people into higher or lower positions of
respect
Culture
The
integrated,
accepted pattern of human behavior,
including thought, speech, beliefs,

actions, and artifacts

Chapter 12
The marketing mix is the part of the
marketing strategy that involves decisions
regarding controllable variables

After selecting a target market, marketers

develop and manage the dimensions of
the marketing mix to give their firm an
advantage over competitors
Successful companies offer at least one
dimension of the marketing mix that
surpasses all competitors
These companies must also maintain
acceptable,
and
if
possible
distinguishable, differences in the other
dimensions as well

Product Strategy
1.Idea Development

New ideas come

internally from marketing research or
employees and from external sources
such as ad agencies, consultants and
customers
2. New Idea Screening
Screening
involves management looking at the
companys resources and its ability to
produce and market the product; most
ideas are rejected in this phase
3.Business Analysis
Analyze
the
products affects on sales, costs and
profits

1.Product Development
The few products
to reach this stage get prototypes and the

development of a marketing strategy

2.Test Marketing
A trial mini-launch
of a product in limited areas that
represent the potential market

3.Commercialization
The
full
introduction of a complete marketing
strategy and the launch of the product for
commercial success
Consumer products are products intended
for household or family use
Business
ProductsUsed
directly
or
indirectly in the operation or manufacturing
processes of businesses
How to improve? Branding, trademark
Packaging, labelling

Quality The degree to which a good, service

or idea meets the demands and
requirements of customers
Pricing Strategy
Pricing New Products

Price Skimming is
charging the highest possible price
buyers who want the product will pay
Penetration price
is a low price designed to help a product
enter the market and gain market share
rapidly

Discounts Temporary price reductions often

employed to boost sales
Distribution Strategy

Marketing Channel
A
group
of
organizations that moves products from
their producer to customers; also called a
channel of distribution
Mid
dlemen,
or
intermediaries,
are
organizations that bridge the gap between
a products manufacturer and the ultimate
consumer
Makes products
available to customers when and where
they desire to purchase them
Mid
dlemen create time, place and ownership
utility