Manpower planning and staffing
Manpower planning forecasts the number and types of employees needed and plans how to meet the need.
Job analysis produces a job description (duties of the job) and a job specification (qualifications and skills needed).
Staffing:
| Internal sources (promotion, transfer) | External sources (advertisements, agencies, campus recruitment) | |
|---|---|---|
| Advantages | Lower cost, faster; motivates staff; candidates know the company | Larger pool of talent; new ideas |
| Disadvantages | Limited choice; creates another vacancy; may cause jealousy | Higher cost, slower; longer adjustment period |
Selection methods: application forms, interviews, tests, reference checks.
Performance appraisal
A regular, systematic evaluation of employees' performance against agreed standards. Objectives:
- provide feedback to improve performance,
- identify training needs,
- provide a basis for rewards, promotion and transfer,
- set goals for the next period.
Reward management
- Monetary rewards:
- Time-based pay (hourly, monthly salary): easy to calculate and gives a stable income, but gives little incentive to work harder.
- Performance-based pay (piece rate, commission, bonus, profit sharing): links pay to output, but quality may suffer.
- Non-monetary rewards: recognition, more responsibility, flexible working hours, training opportunities, employee benefits (medical insurance, extra leave).
Legal requirements in Hong Kong include the Statutory Minimum Wage, the Employment Ordinance and MPF contributions.
Training and development
- On-the-job training (coaching, job rotation): practical and low cost, but may disrupt work.
- Off-the-job training (courses, seminars): focused and expert-led, but more costly and away from work.
Motivation theories
Maslow's Hierarchy of Needs Theory (lowest to highest): physiological → safety → social → esteem → self-actualisation. A higher need motivates only when lower needs are largely satisfied.
Herzberg's Two-factor Theory (Dual-factor Theory):
| Hygiene factors | Motivators |
|---|---|
| Pay, working conditions, company policy, job security, relationships with supervisors | Achievement, recognition, responsibility, the work itself, advancement |
| Prevent dissatisfaction, but do not motivate | Create satisfaction and motivation |
McGregor's Theory X and Theory Y:
- Theory X: employees dislike work and avoid responsibility, so they need close supervision and control.
- Theory Y: employees enjoy work, are self-directed and seek responsibility, so managers should delegate and involve them.
Internal communications
Clear internal communication (meetings, intranet, newsletters, suggestion schemes) helps coordinate work, spread information and build morale.