Course Code: DHR 131

Course Title: HUMAN RESOURCE MANAGEMENT

DHR 131: HUMAN RESOURCE MANAGEMENT
Purpose: To equip learners with human resource management skills and its application in business
Course Objectives: By the end of the course, students should be able to:-
Describe the organizational human recourse process
Discuss the methods and process of performance appraisal and compensation
Discuss the importance of training and development
Describe the procedures involved in job design and evaluation

Course Content:
Organizational assessment and human resource planning; Employee recruitment and selection;
Performance appraisal and compensation; Job evaluation; Training and development; Job design; Labor
relation; Diversity and gender issues in the workplace; Government involvement in human resource
issues; Job satisfaction and motivation to work.
Teaching / Learning Methodologies: Lectures and tutorials; group discussion; demonstration; Individual
assignment; Case studies
Instructional Materials and Equipment: Projector; test books; design catalogues; computer laboratory;
design software; simulators
Recommended Text Books:
Michael Armstrong (2001), A Handbook of Human Resource Management (8th Edition), Millennium
Edition

Text Books for further Reading:

C.B Mamoria & S.V Gankar (2003), A text book of Human Resource Management, Himalayan
Publishing House

Other support materials: Various applicable manuals and journals; variety of electronic information
resources as prescribed by the lecturer

Course Assessment

Examination - 70%

Continuous Assessment Test (CATS) - 20%

Assignments - 10%

Total - 100%

Recommended Text Books:

i. Managing human resources, Wayne Cascio, 2009

ii. Torrington, Derek and Hall, Laura. Human Resource.
Management. London: Prentice Hall, 1998
iii. Byars, Lloyd L and Rue W. Leslie. Human Resource
Management. Boston: MC Graw – Hill, 2004
iv. Cole, G.A. Personnel Management. London: ELST, 2002
v. Crane, Donald P. Personnel, The Management of Human
Resource. Boston: Kent 2002
vi. Flippo, Edwin. Personnel Management. New York: Mc Graw-hill,
 2001
Text Books for further Reading:

i. Graham, HT and Bennett, Roger. Human Resources

Management. London: Pearson Professional Ltd, 1998
ii. Nzuve, S.N.M. Management of Human Resources, A Kenyan
Perspective. Nairobi: Nairobi University Press, 1997
iii. Amstrong, Michael. A Handbook of Human Resource
Management, London: Kogan Page Ltd, 2001
iv. Donnelly, James et al. Fundamentals of Management. Chicago:
Irwin, 1995
v. Dessler, Gary. Human Resource Management. New Delhi:
Prentice-Hall of India Ltd, 2001
Contents
About this Content 1
How this Content is structured .......................................................................................... 1
Course overview 3
Welcome to Human Resource Management …………………………….......................... 3
Human Resource Management—is this course for you? ......... …………………………...3
Course outcomes ............................................................................................................... 4
Assignments ...................................................................................................................... 6
Assessments ...................................................................................................................... 7
Unit 1
Human Resource Management ......................................................................................... 9
Introduction ...................................................................................................................... 9
Meaning and definition .................................................................................................. 10
. ....................................................................................................................................... 11
Functions of Human Resource Management ................................................................. 11
Human resource management responsibility ................................................................. 12
Personel policies ............................................................................................................ 14
1. Identify the Need for a Policy .................................................................................... 17
Check Out These Guidelines to See if a Policy Is Needed ........................................ 17
2. Articulate the Goal of the Policy ............................................................................ …17
3. Gather Information ..........................................
4. Develop and Write the Policy .................................................................................... 18
5. Review the Policy ...................................................................................................... 18
6. Obtain Management Support for the Policy .............................................................. 18
7. Obtain Legal Review of the Policy ............................................................................ 18
8. Implement the Policy .................................................................................................. 18
9. Decide How You Will Communicate the Policy in the Future .................................. 19
10. Interpret and Integrate the Policy ............................................................................. 19

Unit summary ................................................................................................................. 21

Assignment ..................................................................................................................... 21
Assessment ...................................................................................................................... 21
Unit 2
Procurement of employees .............................................................................................. 23
Introduction ..................................................................................................................... 23
Job Analysis .................................................................................................................... 23
Manpower (Human resource planning) .......................................................................... 26
Recruitment ..................................................................................................................... 28
Selection .......................................................................................................................... 30
Unit summary ................................................................................................................. 39
Assignment ..................................................................................................................... 39
Assessment ...................................................................................................................... 40
Unit 3
Training and Development ............................................................................................. 41
Introduction .................................................................................................................... 41
Meaning and Definition ................................................................................................. 41
Management Development programs ............................................................................ 45
Training Methods ........................................................................................................... 46
Evaluation of training programs ..................................................................................... 48
Unit summary ................................................................................................................. 49
Assignment ..................................................................................................................... 50
Assessment ..................................................................................................................... 50
Unit 4
Reward management ....................................................................................................... 51
Introduction ..................................................................................................................... 51
Compensation policy ....................................................................................................... 51
Job evaluation .................................................................................................................. 54
Wage and salary administration ....................................................................................... 57
Performance related pay .................................................................................................. 60
Unit summary .................................................................................................................. 63
Assignment ...................................................................................................................... 63
Assessment ...................................................................................................................... 64
Unit 5
Employee Relations ........................................................................................................ 64
Introduction .................................................................................................................... 64
Introduction .................................................................................................................... 65
Industrial Relations System ........................................................................................... 68
Discipline and Disciplinary Procedures ......................................................................... 72
Grievance Handling procedures ..................................................................................... 76
Health and Safety programs ........................................................................................... 77
Unit summary ................................................................................................................. 84
Assignment ..................................................................................................................... 85
Assessment ...................................................................................................................... 85
Unit 6
Separation ....................................................................................................................... 87
Introduction .................................................................................................................... 87
Meaning and definition .................................................................................................. 87
Retirement Schemes ....................................................................................................... 88
Redundancy policy ......................................................................................................... 90
Unit summary ................................................................................................................. 94
Assignment ..................................................................................................................... 95
Assessment ...................................................................................................................... 95
Unit 7
Personel records and statistics ........................................................................................ 96
Introduction .................................................................................................................... 96
Purpose ........................................................................................................................... 97
Personal Documents ....................................................................................................... 97
Computerised record systems ........................................................................................ 98
Unit summary ................................................................................................................. 99
Assignment ................................................................................................................... 100
Assessment .................................................................................................................... 100
How this Content is structured
The course overview
The course overview gives you a general introduction to the course.
Information contained in the course overview will help you determine:
If the course is suitable for you.
What you will already need to know.
What you can expect from the course.
The overview also provides guidance on:
Course assignments and assessments.
We strongly recommend that you read the overview carefully before
starting your study.
The course content
The course is broken down into units. Each unit comprises:
An introduction to the unit content.
Unit outcomes.
New terminology.
Core content of the unit with a variety of learning activities.
A unit summary.
Assignments and/or assessments, as applicable.

Course overview
Welcome to the Human Resource
Management unit
For as long as owners and managers have been claiming that their people are their greatest asset, HR
professionals and academics have been looking for the evidence that connects the way people are
treated to the success of their organisation. (If we can demonstrate that business success depends upon
good people management and development, key decision makers are much more likely to pay
attention to HR issues.) The good news is that evidence is now available and widely accepted. The bad
news is that there is no one right way to manage and develop people, which will guarantee an
organisation’s success. There are many other variables to be taken into account.

Human Resource Management—is this

course for you?
This course is intended for people who are in the Human resource profession or general management
where people resource is required to be policed in a professional manner. Its also relevant for those
who wish to a make a career out the Human resource subject. It is also intended for students who are
seating for any human resource management unit in general
Principles of management is a prerequisite subject for understanding Human resource management.

Course outcomes
Upon completion of this Human Resource Management unit you will be able to:
Outcomes
[verb] Appreciate the importance of Human resource management in the overall strategic plan of
organisations.
[verb] Link the importance of Human resource management to the success or failure of
organisations..
[verb] Understand the principal elements and theories of HRM as they relate to the role of the HR
professional and that of the line manager in managing, leading and motivating people.
[verb] Understand ethical issues and dilemmas which affect the management of people and the
organisation’s approach to its stakeholders.

Unit 1
Human Resource Management
Introduction
For as long as owners and managers have been claiming that their people are their greatest asset, HR
professionals and academics have been looking for the evidence that connects the way people are
treated to the success of their organisation. (If we can demonstrate that business success depends upon
good people management and development, key decision makers are much more likely to pay
attention to HR issues.) The good news is that evidence is now available and widely accepted. The
bad news is that there is no one right way to manage and develop people, which will guarantee an
organisation’s success. There are many other variables to be taken into account.

Upon completion of this unit you will be able to:

Outcomes
[verb] Describe Human resource management.
[verb] Describe the functions of Human resource management.
[verb] Summarize the types of assistance provided by Human resource
management department.
[verb] Explain how Human resource department can affect
organisational performance.
[verb] Understand about importance of Human resource policies and
the key policy areas.
[verb] Discuss the new role of human resource responsibility.
1.1 Meaning and definition
To meet the challenges of managing work and organisations, managers must understand the
potential of human resources and then secure, retain and develop these resources. This is
the foundation of human resource management or personnel management. Human resource
management is basically concerned with the most efficient and effective utilisation of human
resources as a means of attaining organisational objectives. Definition Beer et al.
Human resource management involves all management decisions and actions that affect the
relationship between the organization and employees – its human resources.

Definition: L.L. Byars

Encompasses those activities designed to provide for and coordinate the human resources
of an organization

Definition American management association

Human resource management can be described as the organisational function accountable

for obtaining and maintaining qualified employees. In today’s complex environment, fulfilling
that
mission is a major contributor to the organisations success Definition Armstrong A strategic,
coherent and comprehensive approach to the management and development of the
organisations human resources in which every aspect of that process is wholly integrated
within the overall management of the organisation. HRM is essentially an ideology.

Definition: Donald P. Crane

Human resource management is the process of supporting the accomplishment of

organisational objectives by continually acquiring human resources, integrating employees in
the organisation, compensating, developing employees potential and maintaining the work
force.

Definition : Donnelly James

Human resource management can be defined as the process of accomplishing

organisational objectives by acquiring, retaining, terminating, developing and properly using
the human resources
in organisation.

1.2 Functions of Human Resource Management

Key functions of Human resource management

1. Acquiring /procurement of employees

This involves planning human resource needs within an

organisation and implementing these through employment activities. Employment
encompasses recruiting needed employees, screening applicants for employment, selecting
the most suitable candidates and placing newly hired employees in appropriate job
vacancies or training.

2. Training and Developing

This includes all activities for the education, training, appraisal and planning of careers for
employees. This prepares them for present and future jobs and thereby enhances their value
to the organisation. Training and educational activities develops skills, improves behaviour
and provides information, necessary for more effective performance. Performance appraisal
informs employees of their progress and aids them in correcting deviations from established
performance standards. Career planning mixing business needs with personal aspirations to
help ensure that human talent is
efficiently and effectively utilized.

3. Compensation

Employees are rewarded for their skills and accomplishment. They are given adequate pay
as in salaries and wages. They are also given benefits and pay incentives for superior
performance.

4. Maintenance

This involves taking care of employees while at the organisation. The human resource is
maintained in a safe and healthy state through safety and health programmes. This function
serves to maintain an efficient and effective workforce by sustaining and improving the
favourable condition within the organisation. The function deals with general welfare of
employees including grievance handling and disciplinary procedures, labour and industrial
relations, and improvement of working conditions.

5. Separation

If the first function of Human resource management is to acquire the employee, it is then
logical that the last function should be separation i.e. returning the person to the society. It
occurs when the employment is terminated and employee leaves the organisation. It is the
reverse of procurement. It is the process of returning the employee to the society. This
includes; retirement, layoffs/redundancies, discharge and quits.

1.3 Human resource management responsibility

Human resource function is basically a staff function. Staff functions are basically advisory
and supportive in nature. They do not contribute directly to the primary objective of the
organisation.
Line function contributes directly to the primary objective of the organisation assisted by staff
function. Therefore, staff functions facilitate and support line The Human resource staff
advises line
managers in acquiring the necessary talent for their department, advises them in the
interpretation of labour agreements, conduct training programmes among others. To achieve
maximum Human
resource effectiveness, all managers should be responsible for Human resource
management. They deal directly with people in carrying out their own assignments and
therefore have the
greatest responsibility for Human resource management. However, they need the firm
support of Human resource department.

HR Role: Business and Strategic Partner

In today’s organizations, to guarantee their viability and ability to contribute, HR managers

need to think of themselves as strategic partners. In this role, the HR person contributes to
the development of and the accomplishment of the organization-wide business plan and
objectives.

The HR business objectives are established to support the attainment of the overall strategic
business plan and objectives. The tactical HR representative is deeply knowledgeable about
the
design of work systems in which people succeed and contribute. This strategic partnership
impacts HR services such as the design of work positions; hiring; reward, recognition and
strategic pay;
performance development and appraisal systems; career and succession planning; and
employee development.

To be successful business partners, the HR staff members have to think like business
people, know finance and accounting, and be accountable and responsible for cost
reductions and the measurement of all HR programs and processes. It's not enough to ask
for a seat at the executive table; HR people will have to prove they have the business savvy
necessary to sit there.

1.3.1 THE NEW ROLES OF THE HUMAN

RESOURCE PROFESSIONAL
Some industry commentators call the Human Resources function the last bastion of
bureaucracy. Traditionally, the role of the Human Resource professional in many
organizations has been to
serve as the systematizing, policing arm of executive management. In this role, the HR
professional served executive agendas well, but was frequently viewed as a road block by
much of the rest of
the organization. While some need for this role occasionally remains — you wouldn’t want
every manager putting his own spin on a sexual harassment policy, as an example — much
of the HR
role is transforming itself.

The role of the HR manager must parallel the needs of his changing organization. Successful
organizations are becoming more adaptable, resilient, quick to change direction and
customer-centered. Within this environment, the HR professional, who is considered
necessary by line managers, is a strategic partner, an employee sponsor or advocate and a
change mentor.

1. Strategic Partner

In today’s organizations, to guarantee their viability and ability to contribute, HR managers

need to think of themselves as strategic partners. In this role, the HR person contributes to
the development of and the accomplishment of the organization-wide business plan and
objectives. The HR business objectives are established to support the attainment of the
overall strategic business plan and objectives. The tactical HR representative is deeply
knowledgeable about the design of work systems in which people succeed and contribute.
This strategic partnership impacts HR services such as the design of work positions; hiring;
reward, recognition and strategic pay; performance development and appraisal systems;
career and succession planning; and employee development.

2. Employee Advocate

As an employee sponsor or advocate, the HR manager plays an integral role in

organizational success via his knowledge about and advocacy of people. This advocacy
includes expertise in how to create a work environment in which people will choose to be
motivated, contributing, and happy.
Fostering effective methods of goal setting, communication and empowerment through
responsibility, builds employee ownership of the organization. The HR professional helps
establish the organizational culture and climate in which people have the competency,
concern and commitment to serve customers well.

In this role, the HR manager provides employee development opportunities, employee

assistance programs, gainsharing and profit-sharing strategies, organization development
interventions,
due process approaches to problem solving and regularly scheduled communication
opportunities.

3. Change Champion

The constant evaluation of the effectiveness of the organization results in the need for the
HR professional to frequently champion change. Both knowledge about and the ability to
execute
successful change strategies make the HR professional exceptionally valued. Knowing how
to link change to the strategic needs of the organization will minimize employee
dissatisfaction
and resistance to change.

The HR professional contributes to the organization by constantly assessing the

effectiveness of the HR function. He also sponsors change in other departments and in work
practices. To promote
the overall success of his organization, he champions the identification of the organizational
mission, vision, values, goals and action plans. Finally, he helps determine the measures
that will tell his organization how well it is succeeding in all of this.

1.4 Personel policies

1.4.1 Introduction

A policy is a general statement or a body of understanding which guides thinking and action
in decision making. A policy provides advanced information and predictable decisions for
situations which are repetitive or which occur widely throughout the organisation. It shows
the limits of an area within which a decision can be made.

1.4.2 Why We Need Policies

Most professionally managed companies find that it is necessary to have policies in all the
major functional areas of management. There will be policies on production, business
systems, finance, marketing, Human resource as well as employment. All such policies
should support the overall
objectives of the organisation as defined by top management. Most organisations, which
employ a reasonable number of people, will have a policy of some kind. The policy may be
disorganised, unwritten and even unintentional but it exists because there will be occasions
when the people running the organisations will have to make judgement and decisions about
their employees. Given similar circumstances, most managers will try to arrive at constant
decisions and these
soon become precedents for future action.

Procedures

These are not same as policies but are an essential part of them because they are
measurements by which the spirit and intent of policies are translated into action. Procedures
will describe who is responsible for taking action, in what order things are to be done. They
will generally define limits of
authority for initiating action , authorising expenditure and decision-making.

1.4.3 WRITTEN POLICY

Written Human resource policies have many advantages including:

1. It ensures uniformity and consistency of administration.

2. It ensures continuity- Policies are more permanent than the individuals on the organisation
and
therefore they create an enduring formulation for human relationships. Written policies
ensure
transmission of the company’s heritage from one generation to another.

3. Promotes effective delegation -A superior is more willing to delegate authority when he

knows that the subordinates will act in the same as he would in a given situation.
Subordinates are also willing to take responsibility when they know what is expected of them.

4. It provides the yardstick by which to measure accomplishments. Appraisals of the entire

Human
resource management programme, begins by evaluation of policy and then comparing
practices
and the result of practices with the policy.

5. It provides a basis on which to make an appeal if there is any disagreement about what is
the
organisation policy is.

6. It’s a source of training and orientation especially for newly hired and promoted
employees.

7. It promotes management by exception. The management is freed from repetitive time

consuming decisions and can devote more time to only important decisions such as strategic
planning.

1.4.4 Principles of a good policy

1. Policies should be distinguished from rules and procedures

2. They should be broad and allow discretion in decision-making.
3. They must be clear, attainable and preferably written.
4 They must be made clear to all employees who are affected by them
5. They should be based on principles and ideas, which are easy to comprehend.
6. They should reorganise the fact that there are individual differences among human beings.
7. They must conform to government regulations.

1.4.5 Steps in formulating a written Policy

A policy is a general statement of a group of related principles that serves as a guide to

action for a
recurring situation that facilitate the achievement of goals.

1. Identify the Need for a Policy

You want to have the necessary policies and procedures to ensure a safe, organized,
convivial, empowering, nondiscriminatory work place. Yet, you do not want to write a policy
for every exception to accepted and expected behavior. Consequently, you do not want to
create policies for every
contingency, thus allowing very little management latitude in addressing individual employee
needs. Conversely, you want to have needed policies, so that employees never feel as if
they reside in a free-for-all environment of favoritism and unfair treatment.

These ten steps will take you from determining the need for a policy through distributing and
integrating a policy. Check Out These Guidelines to See if a Policy Is Needed For each of
the reasons provided about why a policy might be necessary, there are provided examples of
the policies that might fall into that category of need for a policy. A policy is necessary:

• if the actions of employees indicate confusion about the most appropriate way to behave
(dress codes, email and Internet policies, cell phone use),
• if guidance is needed about the most suitable way to handle various situations (standards
of conduct, travel expenditures, purchase of company merchandise),
• when needed to protect the company legally (consistent investigation of charges of
harassment, non-discriminatory hiring and promotion),
• to keep the company in compliance with governmental
policies and laws,
• to establish consistent work standards, rules, and regulations (progressive discipline, safety
rules, break rules, smoking rules), and
• to provide consistent and fair treatment for employees (benefits eligibility, paid time off,
tuition assistance, bereavement time, jury duty).

2. Articulate the Goal of the Policy

Once you’ve determined that a policy is necessary, determine the goal you want to
accomplish in writing the particular policy. When possible, you will want to tell employees
why the policy is being
implemented. You need enough details in the policy to make the company’s position clear,
yet you can never hope to cover every potential situation addressed by the policy.
Consequently, my goal with a policy is short and simple. I recognize this may not be possible
with policies about areas such as the company's approach to the Family Medical and Leave
Act,
discrimination or complaint investigation, or the progressive discipline system. But, how
much can you really say about driving while talking on a cell phone? So, use common sense
as you
determine the outcome you want from your policy.

3. Develop and Write the Policy

With goals and samples in hand, write the policy using simple words and concepts. Speak
directly to the people who will be reading, enforcing, and living by the policy. After each
paragraph, ask yourself "what if" questions to make certain the policy is covering the basics
and the normal exceptions and questions. Do not obsess over this, however; as stated, no
policy ever covers
every possible contingency.

4. Review the Policy

Select several employees, or even a small pilot group, to read the policy and ask any
questions they might have about the policy. This review provides feedback that employees
will be able to
understand and follow the policy. Rewrite the policy based on the feedback.

5. Obtain Management Support for the Policy

Review the policy with the managers who will have to lead and put into effect the policy. You
will want to have their support and ownership of the policy. You will have started this process
much
earlier, even as early as when you identified the need for the policy, but management
support as you implement the policy is crucial.

6. Obtain Legal Review of the Policy

If the policy has legal implications, is litigious by its nature, has personal implications for
employees (such as security procedures), you will want to have your attorney review the
policy before you
distribute the policy further. Make sure you communicate to your attorney that you do not
want the policy rewritten in "legalese." You want the policy reviewed for legal implications
and appropriate
wording.

7. Implement the Policy

In small groups, individually, or in a company meeting, depending generally on the

controversial nature of the policy and the ease with which it will be understood, distribute and
review the new
policy. Give employees a chance to ask questions. The policy should always consist of the
policy on a piece of paper with the employee sign off on a second sheet. Employees can
sign
off that they have received and understand the policy, yet retain a copy for their own files.
8. Decide How You Will Communicate the Policy in the Future Include the policy in your
employee handbook. You may also want the policy to become part of your New Employee
Orientation.
Some companies place policies in their Intranet or in a policy folder on the computer
network's common drive. Determine whether you will want to distribute the policy by
additional methods.
You will also want to archive and date former policies that this policy replaces. You may
need them for legal or other reference in the future.

9. Interpret and Integrate the Policy

No matter what you write in the policy, your later policy application and work practices will
determine the real meaning of the policy. Think "consistent" and "fair" as you interpret the
policy over time.
When you find your practices differing from the written policy, it is time to review and rewrite
the policy and the cycle starts again.

1.4.6 KEY POLICY AREAS

In most organisations, Human resource policies generally cover the following subjects:

1. Selection

This involves all policies a company may have regulating the choice of employees. This
includes not only the recruitment of new employees but also the selection of employees to be
promoted. The selection policy of an organisation should provide clear guidelines on:

- The amount of reliability that should be placed on academic qualifications

- Employment of local people
- Promotions from within or outside the organisation e.g. “The organisation will strive to be a
leader to developing its employees for readiness, to assume more challenging responsibility
but will also recruit from outside for positions in which it does not have readily available
qualified staff to promote’.

2. Training

The basic policy issues would include:

The place training is to occupy in the company, the purpose of training whether induction,
development of skills, human relations etc. e.g. “it is a policy of the company to develop its
human
resource, through aggressive training and development programmes’.

3. Compensation

This would cover:

a. The relationship of wages to the market and the industry rates i.e. whether the employees
are to be paid according to the market rate or to be paid higher or lower wage level than
prevailing in the market or industry.
b. The relation of wages paid to different employees within the organisations i.e. recognition
to be given to the differences in individual performance as means of attracting and retaining
competent staff’.
4. Promotion

The policy would state the company’s wish to promote from within whenever this is
appropriate as a means of satisfying its requirement for high qualified staff. The policy would
however recognise that there will be occasions when the organisation may need to recruit
from outside.

5. Discipline

The disciplinary policy should state that employees have the right to know what is expected
of them and what could happen if they infringe the company’s rules. It would also make the
point that in
handling disciplinary cases the company will treat employees in accordance with the
principles of natural justice.

6. Others include

- Employee services
- Equal opportunity
- Redundancy
- Aids - the policy would define how the company would treat cases concerning HIV positive
people
- Attendance
- Arrangement of work.

Unit summary
Summary

In this unit you learned Definition and meaning of Human resource management, Functions of HRM,
Human resource policies and their importance to the organisation and new roles of the human resource
manager in today’s world.

Assignment
Assignment
1. What is the role of human resource manager in an organisation.
2. Human resource management is a line responsibility but a staff function. Discuss.
3. Explain why it’s desirable to have HR policies written and how you would go about
formulating a written policy for an organisation.
4. To what extent can conflict arise between Human resource manager and other line
managers in an organisation._

Assessment
Assessment
1. You have been commissioned by Texco company a reputable Human resource expert to draft key
policy areas that their new department will require to come up with in order to steer the organisation.
Discuss these
key policy areas coming up with strategic examples.

Unit 2
Procurement of employees
Introduction
Upon completion of this unit you will be able to:

Outcomes
[verb] Define recruitment and selection.
[verb] Understand the meaning of a Job analysis from the recruitment
process point of view.
[verb] Appreciate the importance of Human resource planning in the
future of a company.
[verb] Choose among alternatives the various selection tools best
suited for companies in the recruitment process.
[verb] Appreciate the role played by interviews and their various errors
in the recruitment process.

2.1 Job Analysis

This is the process of examining a job in details in order to determine its component tasks.
The detail and approach vary according to the purpose for which the job is analysed.
Accurate job analysis can only be made if there is sufficient varying information on specific
jobs. Observation, interviews,
questionnaires and examining records can attain Job analysis information: observing
workers on the job, noting the tasks they perform and the time taken to perform. Job analysis
identifies job
activities, tasks and behaviours. It involves combining a detailed description of the duties and
responsibilities, tools and equipment, which are used in performing the job. It also involves
studying the knowledge, education and experience required to do the job and other related
requirements.

2.1.2 Elements of Job analysis

1. Identifying the Job

The usual situation calling for job analysis involves re-identifying the job. Most organisations
have job classifications already established but changes such as re-organisation; workforce,
work
procedures etc may result in changes in job content.

2. Obtaining job information

Information about the job such as work surrounding, skills required, the type of job, key
activities and job requirement is collected. The aim is to seek factual information about a job
as it
exists at the time of study.

Data collection involves:

- Interviewing the worker or groups performing the job and the supervisor who directs their
activities.
- Observing the job while it is being performed.
- Preparing a questionnaire to be completed by the employees and the supervisor
- Literature review

3. Compiling the information

The information collected is summarised and grouped into two categories:

a. A summary statement of key tasks, duties and responsibilities and working conditions i.e.
job description.
b. Summary statement of the job demands and qualifications necessary for effective
performance i.e. job specification.

2.1.2 JOB DESCRIPTION

This is a broad statement of the purpose, scope, responsibilities and tasks which constitute a
particular job. It defines a scope of responsibility and work activities that are sufficiently
different from
those of other jobs to warrant a specific title.

Major components of a job description

1. The title of the job or position.
2. a. Supervised by/reports to
b. Supervises who
c. Co-ordinates with/liaising with.
3. Condensed statement of primary job factors.
4. Work performed (i.e. specific duties)
5. The date on which the job description is made.

This date is very crucial for determining the accuracy of the job description. It’s important that
a job description be kept up to date. The job description must correspond accurately to
current job
requirement. Provision should be made for periodic review of all jobs.

2.1.3 Purposes of Job Description

- To enable the individual to know the scope of his job in terms of activities and
responsibilities involved.
- To enable management set standards of performance.
- To provide useful data for job evaluation, recruitment, training, placement etc.
- To assist management in carrying out objective performance evaluation.
- Provide basis for job evaluation and specification.

2.1.4 JOB SPECIFICATION

This is a detailed statement of the knowledge, experience and physical and mental activities
required to carry out the tasks, which constitute the job. Job specification differs from the job
description in one fundamental way. While Job description concentrates on the contents of
the job, job specification concentrates on the demands a job places on the individual who is
going to perform it.

Major components of job specification

- A statement of desirable knowledge, abilities and skills.

- A statement of desirable experience and training
- A statement of the age limit and any other physical requirements.
- The date on which the job specification is made.

2.1.5 Purpose of job specification

- To enable recruitment of people, with relevant qualification and experience.
- To assist in the determination of training needs.
- To enable management acquire relevant and sufficient tools for carrying out the job.
- To be used in Job evaluation.

2.2 Manpower (Human resource planning)

Human resource planning is defined as a process for determining and assuring the
organisation that it will have an adequate number of qualified persons available at the proper
times performing jobs
which meet the organisational needs and which provide satisfaction for individuals involved.
It’s a continuous process involving many interrelated activities. It includes planning and
evelopment of human resources programmes such as recruitment, performance appraisal
and training to assure that people’s needs of the organisation are met. Manpower planning
requires detailed analysis of the present and the future to ensure that the organisation has
the right number of people available to
perform the jobs required by the organisation.

2.2.1 Elements of Human Resources Planning

1. Organisational objectives and future plans (in order to get the right people to perform the
job)
2. Forecast the total human resource needs of the organisation. (a rough figure of the total
workforce you need in an organisation).
3. Staff and skills audit - To a certain the available employees and skills by checking the
employees inventory.
4. Development and co-ordination of various resource human programmes to best meet the
forecaster needs.
a. Promotion e. Recruitment
b. Retrenchment f. Training and development
c. Transfers g. Retirement etc.
d. Selection

5. Evaluation of the plans to improve future human resource planning efforts.

2.2.2 Forecasting techniques

Some of the most common techniques used in organisations are:

a. Zero based forecasting

This is an approach that uses the organisations current level of employment as the starting
point in determining future employee needs. The need for new employees may arise due to
retirement,
dismissals, resignations or quits or other separations. If one of these situations creates a
vacancy, it’s not automatic that the position will be filled. This means that this approach is
concerned
with justifying decisions whenever a vacancy arises.

b. Departmental forecast (bottom-up) approach

In order to know manpower requirements, the supervisor or manager in each unit or section
is the most knowledgeable person about employees’ requirements. This approach requires
that each
level in the organisation forecasts its employment needs. Once this is done the requirements
are passed on to the Human resource department for review.

c. Predictor variables (Ratio analysis)

Changes in some organisation variables such as production level, technology, financial

position, and work methods and procedures; may predict changes in manpower
requirements.

2.3 Recruitment
When should we recruit?
Recruitment is likely to be necessary when either an existing employee leaves or a new
position is created. Whatever the reason, initially, there should be an assessment of whether
there really is a vacancy or whether the work could be done in some other way.
Reorganisation of work or training could solve the problem, and there is also the possibility of
overtime or internal secondment to
cover the work. When a vacancy does exist, there are a number of alternatives to
undertaking the full recruitment and selection procedure, which can be expensive and time-
consuming.This is
the process of identification and attraction of suitable candidates for current and future jobs.
It’s primary objective is to acquire qualified applicants to fill vacancies. Recruiting process
starts with
determination of recruitment needs. Recruiting needs are the net difference of forecasted
total human resource needs and the available people within an organisation.

Recruiting needs = forecasted needs - available people.

2.3.1 Sources of Recruitment

a. Internal sources

In filling positions above the entry level, many companies first consider promoting present
employees. This not only improves morale but also encourages employees to prepare
themselves for transfer or promotion. Furthermore employees may require less training than
other applicants because they are already familiar with the company and possibly with the
position. The organization
on the other hand is able to evaluate its own employees Sometimes, however, people within
an organisation do not possess the required skills, knowledge or abilities and therefore
outside candidates must be considered must be considered. Some companies consider it
essential to recruit outsiders sometimes in order to bring new blood with different ideas and
experience fresh
approaches to ideas and proposals of the companies.

Advantages
• It is cheap. Few direct costs are incurred.
• The advice of managers who know the applicants can be obtained. Written comments may
be available if a performance appraisal system is in operation.
• Offering promotion to staff is a good policy. It helps to satisfy their ambitions, encourages
them to seek promotion and may help to motivate the workforce to greater effort.

Disadvantages
• For many jobs, particularly those that are highly specialised, the number of applicants from
internal sources is likely to be limited. If recruitment is only internal, the manager may then
be required to accept an applicant who is less suitable.
• Delays sometimes result from the fact that a whole series of replacements have to be
recruited, starting from a vacancy at the lowest level.
• Although there may be a motivational effect from offering promotion to some staff, there
may also be a sense of grievance in those who are unsuccessful.

b. External sources of recruitment

1. Employee referrals
Organisation own employees are excellent referral sources. A friend or a relative may have
the background required for a particular opening. Employees are flattered when asked to
make
recommendations and they generally recommend only those people they feel are qualified.
2. Advertising
Advertisements with a brief description of job duties and the qualification needed can be
effective means of attracting applicants. It is considered the best due to its reacheability.
3. Colleges and universities
Some organisations visit colleges, organise for interviews to select qualified students. This is
when they want to fill positions, which require no experience.
4. Applicant file
Previous applicants file can be a valuable source of candidates. Organisations often receive
inquiries about employment opportunities from individuals with a variety of background and
qualifications.
5. Employment bureau/consultants/agencies/internet etc.
Advantages of external sources of recruitment

1. An organisation has a pool of candidates to choose from i.e. the management has a wide
pool of candidates to choose from and therefore a high probability of getting the r
right candidates.
2. This brings in new ideas, experiences and approach to problem solving.
3. It encourages competition, which in turn improves performance.
4. It ensures stability in operations of the affected section or unit. If a company uses
promotion from within, it interferes with the operation of the section because it leaves another
unfilled vacancy.
5. Employees develop ability to change old habits.

Disadvantages of external sources of recruitment

1. Its time consuming

2. Its expensive because of high recruitment and training costs
3. Lower morale of present employees
4. Discourage employees to prepare for promotion or transfer
5. There is a risk of selecting non-performers because the evaluation process relies on
information given by the candidates.

2.4 Selection
This is the process of scrutinising and choosing the most suitable person for a position from
a list of several candidates. The process ranges from short interview to lengthy appraisal
process. The length of appraisal process depends on various factors such as:

a. Company policy and top management

b. The level and complexity of the job which appointment is to be made.
c. The length of training period and money to be invested in it.

2.4.1 Steps in selection process

There are ten steps in selection process but it depends with the organisation.

- Short listing
- Preliminary interview
- Application blank/employment form
- Selection tests
- Second Interview
- Investigation of applicants background (using the referees in the curriculum vitae)
- Final selection interview by manager or supervisor
- Medical examination
- Induction
- Probation (period the person is expected to work before the organisation finally decides)

2.4.2 Major Selection devices are:

1. Shortlisting
Shortlisting is the first stage of selection. It involves assessing the candidates’ applications to
determine their suitability for the post, with some being rejected and others being retained to
go forward to the final selection process. The key to the process lies in assessing the
candidates’ suitability in meeting the requirements of the person specification and the job
description. These documents provide the criteria against which information about the
candidates can be compared. If they have been prepared properly, in the earlier stages of
the recruitment process, the task of shortlisting is made considerably easier. The most
appropriate people to carry out the shortlisting are those who will subsequently be involved in
the final selection procedure.

This provides continuity, in the application of assessments and comparisons with the person
specification, across the different stages of selection and builds up knowledge and
understanding
about the candidates that can be valuable at the later stage. Usually, it is the line manager
for the job in question and an employee resourcing specialist who would be involved at both
stages. It may not, though, be possible for all those who will be involved at the later stage to
be included in the shortlisting panel, particularly when there will be an interviewing panel. It
may be appropriate to include other people with an interest in the job in the shortlisting
process. This may be the case where team working is an essential feature of the post and
the inclusion of some or all of the existing team on the shortlisting panel may be useful.

Preliminary interviews are also sometimes used as a means of narrowing down numbers,
where there are a large number of suitable applications. These may be done by telephone.
This approach provides the opportunity to meet a wider range of candidates and explore
their applications in greater detail, before narrowing the field down further for the final
selection. It also allows others to be involved in the selection process. It is likely that
preliminary interviews will be conducted by staff who will not subsequently be involved in the
final selection procedure. So, if the line manager will form part of the final interview panel, it
may be appropriate to include their manager in the preliminary interview process.

2. Application blank
This is a tool used to obtain information about applicants that will assist management in
evaluating their suitability for employment. It contains questions that identify the person such
as: Name,
telephone number, address etc. It also contains questions regarding education background,
work experience, and interests. The application blank enables interviewer to draw tentative
inferences about the applicants’ suitability for the job, which he or she is being considered.

3. Selection tests
Tests are used to obtain information that cannot be gained from CV or application blank.
Tests should be used as supplements to other selection devices and not as substitute for
them.
There are various types of tests e.g.

a. Achievement tests/job knowledge tests

b. Aptitude tests/potential tests
c. Personality tests

Assessment tests

A growing number of recruiters are using a variety of testing techniques as part of the
selection procedure. These tests supplement the traditional interview as a selection method
and include a variety of styles and content. Of particular importance are psychometric tests,
designed to test an individual’s mental capacity and process. The most common forms used
in selection are:

1. Intelligence tests

These test an individual’s intelligence quotient (IQ) or their capacity to think logically, quickly,
and/or in a problem-solving situation. Recruiters must use these tests in the right context and
view them as part of an holistic process and not as a process in itself. This is because a high
IQ does not necessarily mean that the individual has the ability to carry out the tasks and
responsibilities of the job or the personality to get on with people at all levels within the
organisation.

2. Personality tests

These are used by recruiters test or measure an individual’s character and personality. This
would take into consideration the individual’s capacity to relate to and get on with other
people, what
motivates them and how ambitious they are. These tests include the 16PF test (16 scales
which measure factors that influence behaviour) and the OPQ (occupational personality
questionnaire –
a series of questions which test the individual’s attitude to certain situations). Again, as with
intelligence tests, these should be used holistically.

3. Aptitude tests

These are used, primarily, to assess an individual’s ability to do the job for which they have
applied. Aptitude tests include spatial reasoning and manual dexterity tests.

4. Proficiency tests

Like aptitude tests, proficiency tests assess the ability of the individual to do the tasks
involved in the job. The best-known example of this is a keyboard skills test for speed and
accuracy. Although recruiters are increasingly making use of psychometric tests as part of
the selection process, they cannot always be relied upon to be valid and reliable. Recruiters
should be aware of the following points:

• Scoring highly on the tests we have mentioned does not mean that individuals will
necessarily be good at carrying out the tasks and duties of the job. Such tests should be
used with care.
• Testers should be qualified and trained to carry out the tests; in some cases they are
members of the British Psychological Society, the body that regulates the use of tests.

• Tests are not always reliable, as individuals can try to choose questions that will give the
best results. This can leave the tests open to manipulation.
• The nature of the tests often makes it difficult to remove bias. Women and some ethnic
minority candidates tend not to perform well in such tests because of the way some of the
tests are designed. This infringes the equal opportunities legislation that was brought in to
protect individuals against race and sex discrimination. To promote best practice standards
in administering selection
tests, a guideline document includes the following points about the way in which they should
be used.
• Everyone responsible for the application of tests, including evaluation, interpretation and
feedback, should be trainedat least to the level of competence recommended.
• Potential users should satisfy themselves that it is appropriate to use tests at all before
incorporating tests into their decision-making process.
• Users should satisfy themselves that any tests they decide to use actually measure factors
that are directly relevant to the employment situation.
• Users must satisfy themselves that all tests have been rigorously developed and that
claims about reliability, validity and effectiveness are supported by statistical evidence.
• Care must be taken to ensure equality of opportunity among all those individuals required
to take tests.
• The results of single tests should not be used as the sole basis of decision-making; this is
particularly relevant in regard to personality tests. In summary, although psychometric tests
have their place and can be useful in helping to select the candidate for the job, they must be
used holistically, taking into account the entire recruitment and selection process. Testers
must be qualified and trained to apply the tests and should ensure that bias and subjectivity
do not cloud
their judgement.

4. Interviews

Selection interviews are the most common and important tools in the hiring programme. The
interviewer is in a unique position of being able to evaluate information obtained from
application blank, tests and background investigation. The interviewer can integrate this data
with personal impressions and observations to reach a decision regarding the suitability of
the applicant for employment.

5. Background investigation/references

All forms of application require candidates to supply references, usually two and including at
least one from the candidate’s current or last employer. It is usual to take up a person’s
references once
the preliminary selection has been made, as a way of confirming the choice and obtaining
independent information about the candidate’s suitability. References can be helpful but
again, they must be treated with caution. There is usually an unknown factor with references
because you do not know the precise relationship between referee and candidate. A
reference may be:
• Biased in favour of the candidate due to a personal friendship
• Biased against the candidate due to a personal dislike
• Biased in favour of the candidate because the referee wants to get rid of them!
• Biased against the candidate because the referee wants to keep them!
• Impartial and accurate.

One may get a more informative reference if they telephone the referee. In this way you may
be able to form a better impression of the referee’s true opinion of the candidate. It is
important not to
take up a reference without the applicant’s consent. Previous employers and school officials
can often provide information regarding the applicants personality and behaviour. Previous
employees can also provide information regarding the quantity and the quality of work
produced.
6. Medical examination

The pre-employment medical or physical information plays an important role in screening for
applicants. It serves four major purposes:

a. To reject those whose physical qualifications are insufficient to meet the requirement of
the work they are being considered for.
b. To obtain a record of the physical conditions at the time of hiring in the event of a worker
compensation claim for injury that occurs later.
c. To prevent the employment of those with contagious diseases.
d. To place properly those who are otherwise employable but whose physically handicapped
condition requires assignment to the specified jobs only.
e. Whether the applicant has health problems or psychological attitudes likely to interfere
with work efficiency or future attendance.
f. To provide data for medical insurance cover.

2.4.3 Selection Interview

An interview is a conversation or verbal interaction normally between tow people for a

particular purpose. The intention is to explore certain areas. The goals of selection interviews
are:
a. The interviewer seeks to obtain enough knowledge about the candidates to determine
whether they are suitable for employment with the organisations and for the particular
job.
b. The interviewer gives sufficient information about the organisation, the job and people
such that the applicant has to make a decision on accepting or rejecting the job if
it should be offered.
c. To maintain and create goodwill towards the company and its management.

2.4.4 Limitations of selection interview

1. Some attributes cannot be measured by an interview e.g. health, intelligence, energy,

behaviour traits etc.
2. Interviews are subject to bias and prejudice

The subjectivity of interviews is caused by the following reasons:

1. Fear

A candidate who is different in any significant way to the interviewer has the potential to
create fear, even if it is fear of offending them because you do not understand their
sensibilities. The natural reactions to fear are fight, flight and fright. Fight: the interviewer
may concentrate excessively on the ways in which the candidate is different. Flight: the
interviewer may reject the candidate at sift stage because that avoids any potential for
conflict or may find ways to justify rejecting the candidate to avoid imaginary problems later
on. Fright: the interviewer may become uncomfortable with the result that this candidate is
treated disadvantageously.
2. The halo effect
This is where the interviewer or interviewers see the person in an “exalted” way because
they have the same hobbies or interests, belong to the same golf club, went to a top school,
are smartly dressed, etc. These perceptions often cloud the mind and judgement of the
interviewer and the candidate gains a halo whether they are good or bad at doing their job.
3. The horns effect
This is the opposite of the halo effect. The interviewer takes a dislike to the candidate, their
personality, the way they dress, etc. This alters the interviewer’s perception of the candidate
and no matter how good that candidate may be at doing the job, they gain a set of “horns”!
Once the interviewer adopts this perception of the candidate, it is very difficult to shake off.
This is why it is often important to have more than one person interviewing; it helps to
avoid scenarios such as the halo and horns effects happening.
4. Stereotyping
This is where the interviewer’s perception of a candidate alters because the individual is a
woman, black, Asian or disabled, etc. Some common societal stereotypes or preconceptions
are:
(i) That a woman’s place is in the home
(ii) That it will be difficult to get a group of white workers to work
under a black or Asian team leader/supervisor
(iii) That disabled people are difficult to employ.
5. Projection
This is whereby on interviewer assumes that other people may be having some weakness as
his e.g. it the interviewer lacks communication skills he also assumes that other people lack
the same skills.
6. Candidates behave unnaturally in most cases. Some people become nervous because of
anxiety and others exaggerate their behaviour e.g. window dressing. Exaggerating
personality, and behaviour to impress the interviewers; and some become withdrawn
because of fear and anxiety.

Disadvantages of interviews
- Time consuming
- Interview subjectivity / bias
- Expensive
- Candidate behaving unnaturally
- Some attributes cannot be measured by interviews.

2.4.5 Types of interviews

There are a variety of different methods of selection interviewing.

1. One-to-one interviews
Traditionally, this has been the most common form of selection interviewing, although it is
open to criticism over its ability to guarantee fair and equal treatment where just one person
is responsible for the process. As such, in most organisations, this type of interview has
declined in importance, although it may still form a part of sequential interviewing, as
described below.
2. Paired interviews
These are interviews conducted by two interviewers, usually the line manager in respect of
the job concerned, together with a member of the employee resourcing function. This
resolves the problem of ensuring fair and equal treatment, associated with one-to-one
interviews, whilst retaining their friendly and relaxed atmosphere, and not overwhelming the
candidate. These interviews are now becoming the norm for selection interviewing in most
organisations.
3. Appointments boards and panel interviews
These types of interview are very common in the public sector and are growing in importance
in the private sector. They usually involve between three and six interviewers questioning the
candidate, with each often concentrating on a different aspect of the job or person
specification. There is only limited time available for each member of the panel to ask
questions but they do offer the opportunity to listen to and observe the candidate, whilst
others are questioning them. The panel approach is used where there are a number of
different interests needing to be represented in the selection process. This is normally only
necessary for very senior appointments.
4. Sequential interviewing
Under this process the candidate moves through a series of interviews, on a one-to one or a
paired basis, with different interviewers. Often each interview will concentrate on different
aspects of the job or the person specification. The interviewers come together at the end of
the process, each having seen all the candidates. They discuss the performance of each
candidate, before arriving at a collective decision. This collective approach overcomes any
problem of bias in a single one-to-one interview. The sequential interviewing process has a
number of advantages over panel interviews. The same variety of interests can be involved
in the selection process, but more in-depth questioning can be pursued. With each interview
lasting perhaps 20 minutes, there is a lot more opportunity to explore the candidate’s
responses than in a panel of five people with interviews lasting about one hour. The process
is also much less intimidating for the candidate.

Assignment
Assignment
1. Identify and describe briefly at lest five potential uses of a job analysis.
2. Describe the elements of manpower planning and explain the need of manpower planning.
3. It’s better to recruit from within other than outside the organisation. Discuss.
4. What’s the difference between recruitment and selection and briefly explain at least five
tools of selection._

Assessment
Assessment
1. You have been commissioned by the Human resource manager to advertise for a job in the Finance
department. Outline and explain the procedures you would go through to ensure that the selection is a
success.
2. Selection tests should be used holistically and not in isolation to ensure that candidates are chosen
professionally. Identify these selection methods and explain critically why this is so.
Unit 3
Training and Development
Introduction

3.1 Meaning and Definition

Training and development programs include numerous activities that inform employees of
policies and procedures educate them in job skills and develop them for future advancement.
Training is basically improving specific job skills in order to improve job performance.
Development is more general and attempts to improve knowledge and abilities required for
the present and future jobs.

Training is continuous processes of helping employees perform at high level from the first
day a person starts to work. It may occur at the place of work or at a special training facility.

3.1.1 Conditions necessary for effective training programs

1. Training must be based on organisational and individual needs. I.e. training is not the aim.
2. Training objectives should be stated spelling out what problems will be solved.
3. All training activities should be based on sound theories of training.
4. Training must be evaluated to determine whether the intended objectives were achieved.

3.1.2 Steps in training process

1. Identifying training needs

The first step in training process is to determine the training needs of an individual employee
or a group of employees engaged on the same work.
2. Stating training objectives
Once the training needs have been identified, objectives should be stated to provide a frame
for the programme. The objectives need to be concise, accurate, measurable and
challenging. There are two major categories of objectives.

i} Skills objectives that focus on developing physical abilities.

ii} Knowledge objectives, which are concerned with understanding, attitudes and concepts.
The idea is to state the objectives so that success or failure of the training programme can
be evaluated.

3. Design and implementation

The needs and objectives are then translated into programs that meet the needs of the
selected trainees. A variety of methods are available for reaching the skill and knowledge
objectives. The content of the programme is determined, training methods and
trainers are also identified.

4. Evaluation
The final dimension of a well-managed training and development program is evaluation. The
purpose is to determine whether the intended objectives were achieved.
3.1.3 Training needs analysis (TNA)

Many organisations use three sets of analysis to identify training needs.

a. Organisation Analysis

This is done by analysis following aspects of an organisation.

i} Organisation culture and philosophy

Training can be designed to impart the organisation philosophy on values to employees. It
may also be designed to inform employees on policies and procedures especially new
employees in various positions and the organisation.

ii} Organisation efficiency and effectiveness

Training can be intended to improve overall productivity, quality or reduce operation costs,
labour turnover etc. This analysis is done by reviewing various company records, observing
the workers and the products, and also discussing with other mangers.
iii} Organisational Development
This aims at ensuring a steady supply of critical skills for the present and future positions.
Specific requests from departmental managers, Training requests from operating managers
provide inputs to training needs analysis.
iv} Occupational or job analysis
Analysis of the job requirements is a variable source of data to establish training needs. Job
descriptions and specifications can provide data for analysing training needs for a particular
job.
C. Individual analysis
Employers to identify training and development needs for individual employees commonly
use career planning and performance evaluation. Employees’ interests, abilities and
knowledge are compared with requirements of present and future job assignment.

3.1.4 Training Design And Implementation

A training program summarises all that is required in training to enable the trainee upon
completion to perform a specific job to the expected standards. Several decisions have to be
made so that a training program is developed and implemented.
- Identification of training of objectives
- Determining the content of the training program
- Determining training methods to be used
- Development of teaching of materials
- The sequence in which training will take place and the length of training i.e drawing the
timetable
- Choice of training location and selection of trainers
- Carry out the training

3.1.5 Kinds of training

Some the common training programs are

1. Orientation
This is the process of disseminating information and providing direction to new employees. It
provides basic survival knowledge at the work place to the new employee. The employee get
to know the work mate, working hours, expected standards, rules and regulation, work
methods and procedures
2. Skills development
Certain situations calls for new skills to be learned. When new machines and appliances and
equipments are introduced employees must acquire new skills
3. Safety training
People should never be allowed to operate machines appliances and equipment until they
know how to operate them safely. Safety training is designed to prevent damage to property
and accidents in work place.
4. Professional and technical training
Rapid scientific and technological changes can make even the most qualified workers look
obsolete over a period of time. This is because with changes in technology and work
methods, job requirements also change. As a result, even those who are otherwise
adequately qualified have to undergo training in the use of new methods and techniques.
While refresher training helps in the workers in learning new methods and skills. It also
enables them to refresh their memory of things, which they had learned long time ago.
5. Supervisory and managerial training
Supervisors and managers regularly under go training programs to improve their managerial
skills. In this kind of training the common areas covered are: decision making,
communication, leadership, team building, motivation, public and human relations etc.

3.2 Management Development programs

Management development programs are those organizations sponsored programmes aimed
at educating managerial staff including supervisors beyond the immediate; technical and
professional requirements of the job. The purpose of management development programs is
to increase the organisations present and future capability in attaining its goals. Some of the
most common methods used in developing managers are:

a. Role Models

One of the best methods of developing new managers is for effective managers to teach
them. The role model sets a good example of how to be a manager, answers questions and
explains why things are done in a particular way. Role model stresses that are the trainees
are to develop, the superior must delegate enough mistakes.
b. Transfers (Job Rotation)
In this approach, trainees are rotated through a series of jobs to broaden their managerial
experience. The jobs involve exposure to a variety of functions and geographical areas.
Rotation and transfers broaden the manager’s background, experience and accelerates
promotion of highly competent individuals.
c. Case Study
A case is a written account of an actual organisational situation in its historical,
environmental, operational, financial and human aspects. The trainees are required to go
through the case, analyse it and suggest alternative solutions to inherent problems.
The group then analyses the case with the assistance of the facilitator or trainer.
d. Seminars/Conferences/Workshops
Managers can attend short courses to polish their skills in areas such as planning and
organising work, decision-making, communication, motivation, public and human
relationship. Others may include; team building, process consultation, sensitivity
training, assertiveness training and managerial grid.
e. Training by Management Training Institutions.
Managers can acquire more professional skills by attending management courses in
institutions of higher learning. The managers can be sponsored for courses such as BA,
human resources management, marketing, diploma, post graduate diplomas etc.
3.2.1 Principles of Adult Learning
1. Adults are motivated to learn as they experience needs and interests that learning will
satisfy.
2. Adults’ orientation to learning is life centred hence learning units is to be organised along
life situations and not curriculum and subjects.
3. Experience is the richest resource for adult learning. Analysis of life experience and case
studies are the core methodology in adult education.
4. Adults do not need or want to be told by an all-knowing people who then check on the
correctness of their knowledge.
5. Mutual enquiry, participation, dialogue and conventional exchanges are the appropriate
vehicles of learning.
6. Adults have accumulated experiences and these can be a resource of management.
7. Adults’ readiness to learn is a function of the need to perform social roles.

3.3 Training Methods

Training includes all the processes whereby employees are shown and taught the necessary
skills for performing a particular job. Consequently, any education that is technical in nature
should be regarded to as training. Training should be comprehensive to allow an employee
to understand the nature of the work to be performed. There are two major categories of
training programs.

3.3.1 On-job training methods

This exposes the employee to the actual work situation and therefore the trainee is able to
experience the conditions and requirements of the job.
a} Orientation or induction training
It’s meant for the new employees and it’s aims to adopt them to the specialised job
requirements and work methods of the enterprise. Under such training, the new employee is
to begin with, given a job description of his job. At the same time, he is provided with a set of
policies, rules and procedures, which have a bearing on his performance as an employee.
In many organisations, there is a formal orientation programme for new employees so as to
ensure that they adjust themselves smoothly, to their work environment. New employees are
taken round the offices or plant to learn the history, growth and achievement of the
organisation. They are also informed about the Human resource policies of the company and
the benefit/schemes available to employees.

b} Apprenticeship
This is a method where a worker is appointed as an apprentice and is placed under charge
of a qualified senior worker. The worker learns the method of work by observing and
assisting the senior worker. Apprentice workers are usually paid less than qualified workers.
The training period under this method ranges between 2 and 5 years. In skilled trades,
apprenticeship training is the most common. Mechanical technicians, electricians and other
technical trades usually learn their jobs through such training.
c} Delegation {Management development}
It’s a process whereby a superior assigns certain responsibilities to his subordinates and
also commensurable authority. It makes a subordinate feel important in the sense that he is
given a task to complete and also appropriate authority ever-relevant resources.

d} Vestibule Training {Off the job}

This is a training method where the trainee undergoes a supervised practice on manual
tasks in a separate work area with emphasis on safety, learning and feedback.
e} Job rotation
In this approach, trainees are rotated through a series of jobs to broaden their experience.
The jobs typically involve exposure to a variety of functions, product lines and geographically
areas.
3.3.2 Off the job training

Most training programmes are on job training although there are a few off job training;

a} Seminars /Workshops
These are short-term training courses on specific job skills. They can be conducted in
training institutions, company facilities and other higher facilities.
b} Training in education or vocational training institutes
Depending on the skills required, some organisations sponsor their workers to training
institutions for technical and professional training for diploma and degree programs

3.4 Evaluation of training programs

Training is an expensive undertaking and shouldn’t be undertaken for the sake of it. Its worth
must be assessed at the organizational and individual levels. The criteria of evaluating
training programmes are:

a. Reactions of the participants

This measures how well the participants like the programme whether it was worth the time
and whether the programme was presented in a meaningful and interesting manner. The
reactions can be obtained through participant’s evaluation forms.
b. Learning outcomes
This measures the extent to which the trainee or participant learned and retained the
material presented in the training programme. This is measured by use of tests and
examinations.
c. Change in behaviour
This measures the transfer of learning i.e. how well the trainee can apply the acquired skills.
The supervisor provides this information.
d. Results.
The primary objective of an employee-training programme is to improve the overall
performance of the organisation or group or department. The results achieved through
training could be reduced operating costs, low labour turnover rate, low rate of
absenteeism, improved productivity etc
Assignment
Assignment
1. a. Describe the elements of an effective training programme.
b. Discuss the importance of analysis of training needs as foundation for effective training in
organisations.
2. a. If you were in charge of employee training, what would you take into consideration in
designing a training programme?
b. In order to evaluate the worthiness of a management development programme, what
should one look for.
3. Critically explain the steps in training process.
4. Explain how you would analyse the training needs as a step in planning for a training
programme._

Assessment
Assessment
1. A bank intends to train it’s new trainees in operating the teller counters in it’s new branch. You are
required as a training expert to advise the bank on the best training method they should undergo to
ensure that they are well trained to give and receive customers money and deposits
respectively.
2. Mount Kenya university has just completed a workshop for its employees on a new information
system to be used by lecturers for students teaching. You have been given the task of evaluating
whether the training was a success. Present a paper on the various ways this can be assessed.
Unit 4
Reward management
Introduction
The purpose of this chapter is to investigate the relationship between the
human resource function and payroll administration.
Upon completion of this unit you will be able to:

Outcomes
[verb] Outline the rationale behind different compensation packages.
[verb] Evaluate the link between pay and performance.
[verb] Appreciate the importance of wage and salary administration.
[verb] Understand the relevance of having a compensation policy.
[verb] Explain what Job evaluation is and the different methods.
[verb] Discuss the basis of performance related systems.

4.1 Compensation policy

Policies with regards to wage and salary administration and supplementary benefits to
employees should form a vital component of the Human resource policy of an organisation.
Effective compensation policies will enable the organisation not only to attract capable and
competent persons but also retain them for longer periods. In the absence of an objective
policy in these respects, wage rates may be based on personal and arbitrary decisions and
in that case it may not assure adequate and equitable compensation schemes. This result is
low morale and inter-group conflict.

4.1.1 Elements of good compensation policy

1. Adequate salary and wage payment. This depends on competitive rates prevailing in the
labour market, industry average, and financial position of the company and management
policies.
2. Equity in wage and salary payment. A good compensation policy should ensure that there
is equitable pay structure betweenthe different categories of employees on their skills and
the natureof jobs performed by them. Psychologically, an employee is often more interested
in what his fellow employees are receiving compared to what he is receiving. No doubt there
will be differences in wages and salaries of different workers depending on the relative worth
of their jobs, levels of education, skills andexperience, responsibilities as well as working
conditions.

However, care should be taken to see that any differences in payment are as a result of an
objective evaluation and accordance with the relative worth of each job on the organisation.
3. Efficiency of performance. This is a major factor in the determination of wages payable to
any employees. A new and relatively inexperienced employee cannot for instance be as
efficient in his job as the one who has a long experience. Wage rates in the case of an
employee with higher efficiency level are accurate dertermined only where the output can be
measured in quantitative terms and in similar conditions. In the case of managerial,
administrative and clerical jobs, such measurement may not be possible. Having a range of
pay for each job scale such that a newly appointed person will be paid at the minimum of
the scale may appropriately reward efficiency in such jobs. Improvement in performance may
be duly compensated by theannual increments and exceptional improvement in performance
may be compensated by way of extra increments in the scale or promotion to the next scale.
Depending on the nature of the job and possible wide variations in individual performance
levels, the range of the scale may be broadened such that while average employees are
granted normal single increment, those with exceptional performance will be given extra
increments.
4.1.2 Objectives of compensation policy
1. Good salary administration attracts highly qualified people into the organisation.
2. A sound wage administration can go a long way in reducing the friction and grievance of
employees over wage differentials and inequities.
3. Good salary administration is necessary for building up morale and increase the
motivation of employees. The result is increased productivity and profits.
4. Favouritism is considerably reduced when the wage and salary administration is good.
5. Under a good salary administration, employees are paid equitably i.e. employees are paid
salaries and other forms of compensation according to their skills and abilities.
6. Employers can systematically estimate labour costs and control of labour costs.
7. Employee’s motivation is enhanced and morale is stepped up when salary administration
is sound and effective.
4.1.3 Wage And Salary Systems
The aim of any good salary system should attract qualified people in sufficient numbers to
the organisation. Such qualified people should be suitable to the current and future needs of
the organisation. Specifically, such a system should:
1. Attract employees of the right calibre
2. Encourage staff to make full use of their ability and develop their potential
3. Encourage employees to strive to achieve the objectives of their jobs and those of the
organization
4. Reward the employees in accordance with the value of their contributions
5. Encourage employees to stay with the organizations.

To meet these objectives the Human resource managers can be any one of the following or
a combination:
i} Assemble information on the rates being paid to various categories in the market in order
determine what rates ought to be paid within his own establishment
ii} Engage in collective bargaining process and in doing so secure acceptance not only of the
particular rate of pay but also of the validity of certain underlying assumptions about
what factors determine whether a rate is right.
iii} Allow upward movement of existing Human resource line with long or good service and
thus provide an opportunity to present employees with either future jobs security based
on career development or current motivation based on merit as reflected in rewards.
iv} Advice the organization on conditions of arising wage levels or inflation
4.1.4 Wage and salary guidelines
In order to have a good wage and salary system the following principles should be adhered
to –
i} Job descriptions and evaluations should be periodically checked and kept up to date
ii} Wage and salary policies should be carefully developed baring in mind the interest of
management employees other stakeholders and the society in general
iii} Wages and salary policies should be expressed should be expressed clearly in writing to
ensure uniformity and stability
iv} Efforts should be made to ensure that workers know and understand the wage and salary
policy
v} Decisions should be made and checked against formulated policies
vi} A well structured pay system should be established and communicated to all employees
4.2 Job evaluation
This is the process of determining the relative worth of each job in the organisation. The
worth of a job should be made clear because the level of pay should reflect the importance of
the particular job. The aim of the job evaluation programme is to determine the relative worth
of each job and on it’s basis set wages and salaries of employees. Job evaluation provides
useful information and data for effective wage and salary administration and smooth union
management negotiations on wages.

Job evaluation also helps in standardisation and improvement of working conditions. The
major objective of job evaluation is to eliminate any pay inequities that may exist due to
unreasonable pay structures although perceived inequities can never be completely
eliminated. The relative value of each job is established by identifying the factors, which
define value.

The key elements/tasks of a job are selected to be used as a standard with which to
compare others. The most common factors that are used in evaluating jobs are:
i. Skills - This includes other factors/sub-factors such as:
- Job knowledge
- Education in the normal school education, which is, required to perform the job i.e.
academic qualifications.
- Experience - This is the length of time required by an individual to perform and have
enough knowledge for the job.
ii. Effort. This refers to the physical or mental effort on demand required by the job Mental
effort deals with alertness required, concentration and conditions of manual
activities with mental attention.
iii. Responsibility - Certain elements on sub-factors are considered under responsibility as a
major factor.
a. Equipment - This places the responsibility for preventing damage to organisational
equipment and assets. It also involves responsibility for prevention of theft or loss of
equipment.
b. Material - This is the responsibility for preventing waste on loss of raw materials on
partially finished goods.
c. Finances - The responsibility for ensuring proper use of funds and finances.
d. Human Resources - This is the responsibility for the work of the others.
e. Safety - This is the responsibility and care that must be exercised to prevent injure to
others.
iv. Working conditions - This involves assessing the surrounding or physical conditions under
which the job must be performed and the extent, which the conditions makes the job,
accepted. It also involves assessing the risks involved/connected with the job. Different jobs
expose people to different risks. Job evaluation focuses on jobs and not individuals
occupying the jobs.

4.2.1 JOB EVALUATION METHODS

a} Job ranking
The jobs are evaluated on a general consensus by the evaluators. It’s a simple non-
quantitative method. It’s commonly used by small organisations because there are relatively
few different jobs that are well known to the evaluators. In most cases, no attempt is
made to measure individual components of each job such as skills, effort, responsibility and
working conditions.
b} Job classification method / Grading method
Like ranking method, it’s simple and non quantitative. The method consists of establishing a
predetermined number of grades or job classes. The classification process specifies a
number of grades before hand and broad descriptions are then written on the types
of jobs to be placed in each of the grades. This is followed by evaluating each job by
comparing it’s descriptions with the descriptions for the grades and then placing it into the
appropriate grade. A good classification will require an extensive knowledge
about the dimensions of different jobs and the relative value of the dimensions.

c} Point system method

This is the widely used method of job evaluation. Each job is examined in terms of factors
such as skills, responsibilities, effort and working conditions. It’s analytical method where
each factor is given a weighting indicating its relative value and for each factor there are
varying degrees. A score is then given depending on how demanding the job is in terms of
each factor with overall points value determining the relative worth of each job.

Traditionally, a panel of managers and workers representatives who examine each job
description and compare it factor by factor with degree definitions has carried out the
analysis. In recent years, there has been increased interest in computer assisted job
evaluation systems that award scores to each job on the basis of information gathered from
job analysis questionnaire. Trained analysts put a series of detailed questions to jobholders
from a multiple-choice questionnaire. The results are then fed into a computer, which
generates a score for each job. The points values eventually derived for each job can be
plotted on a graph or simply listed from the highest to the lowest to indicate the ranking
and then points ratings are matched with cash amounts as decisions are made on which
point ranges equal with various levels.

However, there are some problems connected with quantitative or analytical methods, which
are built around an analysis of limited factors. The reliability of the outcome can be improved
using multiple factors schemes but they have the disadvantage of being hard to understand
and appear to depend on mechanical decision making rather than to human judgement. This
may produce better decisions, which are less acceptable.

The following are the major steps for developing the point method :

1} Identifying the key jobs that are equitably paid. They are not necessarily the most
important jobs in the organization. They are fairly common jobs which are rather stable and
well defined.
2} Identifying job factors that are used to determine pay levels i.e. compensable factors
3} Weighting the factors according to their contribution to overall worth of the job.
4} Assigning points to each job
5} Group together jobs with relatively same points
d} Factor comparison method
Conceptually, it is similar to the point method but complex Because of its complexity it is not
widely used. The steps in this method are –
i} Identifying the key jobs. This is the same as in the point method. The key jobs are
equitably paid.
ii} Identifying job factors. These factors represent the most important dimension of value.
iii} Ranking the jobs .The key jobs are ranked with respect of each of the factors
independently.
iv} Assigning monetary smounts to each job on each factor
v} Comparing unique jobs with key jobs
4.3 Wage and salary administration
The central part of compensation management involves determining wages and salaries.
4.3.1 How to establish pay structures
Establishing a pay structure
1. Environmental analysis
This involves analysing the industry on sectarian salaries, economic conditions, government
policy and legislation and also internal analysis to determine the financial position of the
company that is the ability to pay and management policies.
2. Job evaluation
The second step is to conduct job evaluation in order to assess the relative importance of
each job to the organisation. They most important job receives the highest compensation
and the others are priced accordingly.
3. Job Grading
This follows the job evaluation. The various jobs are grouped together and graded on scales.
That is, jobs with equal relative importance are grouped together.
4. Job pricing
The various grades on scales are then priced with the highest grade receiving the highest
pricing. The other jobs on grades are priced accordingly and this is done considering all the
environmental factors that is both external and internal factors.
5. Grade ceiling.
The job grades or scales are then given a salary range. This is meant to cater for experience
where more experienced workers in a certain grade earns higher salary than the less
experienced employees in the same grade.

4.3.2 The Elements Of Payment (Kinds Of Payment)

{Financial and Non financial incentives}

The payment of an individual will be made up of one or more elements. Fixed elements are
those that make up the regular weekly or monthly payment to the individual and which do not
vary other than in exceptional circumstances. Variables elements can be varied either by the
employee or the employer. The potential elements of payments are:
i} Basic Pay
This is the irreducible minimum rate of pay(salary or wage). In most cases, this is the
standard rate not having any other additions made to it. In other cases, it’s a basis on which
earnings are built by the addition of one or more of other elements in payment.
ii} Plus sage
Sometimes, the basic pay has an addition to recognise as aspect of working conditions or
employee capability. Payments for educational qualifications and for supervisory
responsibilities are common special additions. There is also an infinite range of other
allowances.
iii} Benefits
These are extras to the working conditions that have a cash value and can be of great
variety such as medical allowance, accommodation allowance, sick and leave allowance,
pension schemes etc.
iv} Premia
Where employees work at inconvenient times such as shifts or permanent nights they
receive a premium payment as a compensation for the inconvenience. This is for
inconvenience rather than additional hours of work. Sometimes, this is built into
the basic pay therefore it’s a regular feature of the contract of employment.
v} Overtime
It’s customary for employees working more hours than normal to be paid for those hours at
an enhanced rate. No matter how regularly overtime is worked, there is always the
opportunity for the employer to withhold the provision of overtime or for the employee
to decline the extra hours.
vi} Incentive
This is described as an element of payment linked to the working performance of an
individual or group as a result of prior arrangement. This includes payment by results
schemes, skill based schemes, commission paid to sales people and other
performance related to pay schemes that are based on the achievement of a grid objectives.
The distinguishing feature is that employee knows what has to be done to earn the payment.
vii} Bonus
The essential difference between this and incentive is that the employee has no entitlement
to the payment as a result of a contract of employment and cannot be assured of receiving it
in return for a specific performance. Profit sharing is included under these general heading.
The point is that the level of the benefit cannot be directly linked to the performance of the
individuals but to the performance of the business. Share ownership or profit sharing on an
agreed basis can greatly increase the interest of the employees in how the business is run
and can increase their commitment to its success. However the performance of individual
is not directly rewarded in the same way as in incentive schemes.

4.4 Performance related pay

This is any pay increase awarded to an employees based on his or her individual
performance. It is different from a bonus in that it represents a continuing increment where
us the bonus represents a one time payment. Performance related pay has both advocates
and detractors and is the subject of much debate. Advocates argue that only pay or other
rewards tied to performance can motivate improved performance. They contend that the
effect of awarding pay increment across the board with no regard to individual performance
may actually detract from performance by showing employees that they will be rewarded the
same regardless of how they perform.

On the other hand, the detractors present good reasons why performance related pay
schemes are not effective in improving performance:

i} Usefulness of the schemes depend on the validity of the performance appraisal system
since if performance appraisal system are viewed as unfair, so too will the merit pay that is
based on them.
ii} Supervisors give most employees about the same increase either because of central
tendency error or because of a desire to give everyone an increase that will at least help
them stay even with the cost of living.
iii} Almost every employee thinks he or she is an above average performer and therefore
being paid a below average merit increase can be demoralising.
4.4.1 Developing Effective Incentive Plans .While there are no hard-and-fast rules, there are
some concentrations under which straight salary or pay based on time on the job (not on an
incentive) makes more sense.
i} When units of output are difficult to distinguish and measure, straight salary (or perhaps a
group incentive plan) is more appropriate.
ii} When employees are unable to control quantity of output.
iii} When delays in the work are frequent and beyond employees’ control.
iv} Most incentive plans tie pay to the quantity rather than the quality of output. When quality
is a primary consideration, pay based on time may be more appropriate. Therefore in
general, it makes more sense to use an incentive plan when:
i} Units of output can be measured.
ii} There is a clear relationship between employees’ effort and quantity of output.
iii} The job is standardised, the work flow is regular, and delays are few or consitent.
iv} Quality is less important than quantity, or if quantity is important it can easily be measured
and controlled. The specific considerations in establishing such any plan are:

i} Ensure that effort and rewards are directly related. The incentive plan should reward
employees in direct proportion to their increase productivity. Employees must also
perceive that they can actually has to be attainable, and you have to provide the necessary
tools, equipment and training.
ii} Make the plan understandable and easily available by the employees. Employees should
be able to calculate easily the rewards they will receive for various levels of effort.
iii} Set effective standards. The standards should be viewed as fair by your subordinates.
iv} Guarantee your standards. View the standard as a contract with your employees. Once
the plan is operational, use great caution before decreasing the size of the incentive in any
way.
v} Guarantee an hourly base rate. It is usually advisable to guarantee employees’ base rate
usually advisable to guarantee employees’ base rate.
vi} Get support for the plan. Group restrictions can undermine the plan; get the work groups’
support for the plan before starting it.

4.4.2 Promotion and transfers

There are other forms of rewards in an organisation. Rewarding can be done by promotion or
transfers to better or preferred positions. The most common criteria used for promotions by
organisations are:
1. Seniority Experience
This is the number of years or lengthy of time in a particular job scale or position. The
assumption is that the more one stays in a particular position, the more knowledgeable he
becomes.
2. Job knowledge /Expertise
Some people are talented in their areas of specialisation and therefore their performance or
efficiency is exceptional compared to others.
3. Education/Academic Qualifications
More educated employees are assumed to be more effective and efficient especially when
dealing with non-recurring problems and coping with environmental changes.
4. Age
Some positions require a person of a particular age which indicates maturity.
5. Personality traits
Such as loyalty, honesty, trustworthy etc.
6. Merit
This is the exceptional performance.

Unit summary
Summary
In this unit you learned
The rationale behind different compensation packages.
To Evaluate the link between pay and performance.
To Appreciate the importance of wage and salary administration.
To Understand the relevance of having a compensation policy.
To Explain what Job evaluation is and the different methods.
 Discuss the basis of performance related systems.

Assignment
Assignment
1. a. What are the objectives of a good compensation policy.
b. What are fringe benefits? Why do organisations provide them and what useful purposes
do they serve in practice.
2. What considerations would an organisation bear in mind when designing and
implementing a job evaluation programme?
3. a} Outline the limitations of the ranking method of job evaluation
b} Itemise the major steps of the point method of job evaluation.
4. Describe the process involved in establishing a suitable pay structure in a business
organisation._

Assessment
Assessment
1. Thika institute of technology is migrating to university status.You have been asked as a human
resource expert to present a paper on the various Job evaluation methods that may be used to classify
job for the purpose of remuneration. Undertake this task and indicate reasons for each method.
2. The company you work for has had several vacant positions following growth of the company’s
size. As a result, the management wishes to promote majority of its staff to fill up the new positions.
You have been approached to advise on the various criteria that can be used to ensure the
process is professionally done.

Unit 5
Employee Relations
Introduction
Employee relations is not confined to unionised collective bargaining but encompasses all
employment relationships. It goes beyond the negotiation of pay and benefits to include conduct of the
power relationship individual employees and their employers.
Upon completion of this unit you will be able to:
Outcomes
[verb] Give the meaning and definition of employee relations.
[verb] Understand the various rules and agreements found in employee
relations.
[verb] Explain the industrial relations system in Kenya.
[verb] Appreciate the role of trade unions in organisations.
[verb] Understand Disciplinary procedures.
[verb] Understand Grievance handling procedures.
5.1 Introduction
Employee relations are a term used to describe the regulation of management - employee
relationship. It encompasses a variety of such relationships arising from collective bargaining
between management and workers representatives. Parties involved in employee relations
are:
- Management (managers) representing employers
- Employers association representative (i.e. representative of federation of Kenyan
Employers FKE)
- Trade Union Representative
- Individual employees
- Government representative
- Representatives of the law

The contractual relationship between an individual employee and his employer is still the
cornerstone of employee relations even though this relationship has been affected by
collective relationships and the result of collective bargaining. The reason for the continued
existence of the individual employment contract lies in its great flexibility. It can and does
contain matters, which are implied in the relationship just as it contains matters that are
expressly agreed upon. In broad terms the key issues of employee relations are those of
conflict, cooperation, rules making, authority and power, information and
communication and general motivation.

5.1.1 Perspectives in employee relations

In view of the number of groups having an interest in employee relations, it’s not surprising
that differences of viewpoint should arise concerning both the subject matter and the ultimate
goals of those major elements of relationships at work. Managers may see employee
relations as one or more of the following:

- Creating and maintaining employee relations

- Establishing workable and credible channels of communication with the employees
- Negotiating with trade union representatives
- Sharing power with employee representatives in an organised way
- Achieving higher levels of efficiency and service by cooperation with the employees and
their representatives. Employees may see employee relations as one or more of the
following:
- A genuine attempt by management to adopt a benevolent approach to employees
- Management effort to win employees to their way of thinking
- An opportunity to participate in shop floor decision making and possibly even at board level
- A ‘them and us’ situation involving management union meetings and frequent wrangling
Third parties such as government and the society may see employee relation as:
- Attempting to achieve mutually harmonised relationships between employers and
employees.
- Laying down rules of conduct for employers – employee relations
- Regulating the power struggle between owners and managers on one side and employees
and organized labour unions on the other.
- Establishing peace-making arrangements between management and employees and the
protection of the interest of the rest of the community. In situations where managers see their
role as motivating employees by means of good human relations and thus adopt a
 collaborative if not paternalistic style of management, their approach to employee relations is
described as unitary approach. In these approach, the managers assumes that the
organisation is one large happy family, with a generally agreed sense of common
purpose. If the employees are happy and accept it, the end result seems to be harmony and
success. Where the employees begin to feel dissatisfied with the unitary approach to
management, then conflict is likely to occur unless the management change the style, where
the existence of separate interests is openly admitted and where arrangements are made to
resolve the conflict that is seen to be inevitable then this is called pluralistic approach to
employee relations
.
5.1.2 RULES AND AGREEMENTS IN EMPLOYEE RELATIONS

The main body of rules in employee relations is drawn from the

following:
i} Company or organisations rules - These are usually contained in companies’ policy
manuals and enforced by managers.
ii} Union rulebooks - These are drawn by the members or employees and enforced by union
officials.
iii} Collective agreements - These are jointly agreed rules or practices made by management
and employee representatives.
iv} Custom and practice -These are the informal rules which arise from the behaviour of
managers and employees over a period of time. Unlike the other rules mentioned, these
rules are not usually written down.
v} Government (law). These are rules arising from statute and from the common law in
matters related to employee relations.
5.1.2.1 Collective Agreements
They are jointly agreed rules or practices made by management representatives and
employee representatives. They are usually divided into two major categories.
5.1.2.2 Procedural Agreements
These constitute the foundations of collective bargaining for they lay down the rules of
behaviour, which the parties should adhere to in their relationships with each other. Matters
covered by such agreements include

- Negotiating the rights of unions

- Union membership i.e. categories of employees to be covered
- Numbers and rights of union representatives
- Procedure to be followed in the case of a dispute between the parties
- Grievances handling and disciplinary procedures

5.1.2.3 Substantive Agreements

These are the agreements that deal with the substance of employee relations more
specifically terms and conditions of employment. Matters included in such agreements at:
- Pay i.e. salary and wages
- Hours of work including shift work
- Overtime payment
- Holiday/leave entitlements
- Promotion policy
- Redundancy policy
Substantive agreements are negotiated regularly but procedural agreements are negotiated
only as and when the parties feel the need to change or clarify the rules in conducting a
negotiation, both sides engage in a considerable amount of prior preparation.
This includes:
- Deciding on the objectives
- Assessing relative bargaining power
- Deciding tasks to be employed
- Assessing the impact of external influences e.g. Economic conditions/cost of living and
legal requirements. In assessing the external influences on an organisation, the
management side normally have to consider the following:

- The organisations ability to pay

- The organisations policy and pay and working conditions
- Industry average of pay
- Government policy and legal requirements. The union side will have to consider the same
factors that will add other factors such as trade union policy.

5.2 Industrial Relations System

Industrial relations are the term used to describe the relationship between an employer and
his employees and the degree to which conflict or peace may exist within an industry and its
workers. The process can best describe the industrial relations system on steps
in settlement of a trade dispute.

5.2.1 Steps in the settlement of disputes

1. Establishment of Relationship By Recognition Agreement. This is an agreement in writing
between a trade union and an employer that provides for the recognition of the trade
union as employees representative. The recognition agreement sets out the following
matters:
- Matters on items of negotiations such as rate of pay, working hours, retirement benefits,
medical benefits, principles of promotion, lay off, grievances and other generally accepted
terms and conditions of employment (substantive agreement).
- Negotiation procedure in great details in respect of:
i} Individual grievances
ii} Collective bargaining agreement
- The steps to be taken in the event of failure to reach the agreement.
- How the recognition agreement as a whole or in part may be modified or terminated.
2. Submission and Discussion of demands: Once the relationships between an employer is
formally established by signing of the recognition agreement, the trade union submits
demands on behalf of the members; the trade union and the employer discuss these
demands in accordance with the collective bargaining agreement machinery created by
themselves.
3. Reporting of a trade dispute and Mediation- In respect of matters not resolved, the parties
may appoint a mediator to assist them reach agreement. Mediation is a process
whereby a third neutral party helps a trade union and management to reach agreement. The
mediator assists in settling grievances out of the administration of collective bargaining
agreement
4. Conciliation. If the matters are still not resolved, the parties record a deadlock. At this
stage, the parties are at liberty to make a formal report of a trade dispute to the minister for
labour. Before a trade dispute is accepted a documentary proof of the meetings recording a
deadlock on the items in dispute is required. The argument here is that the parties to a trade
dispute are in the best position of finding the best possible solutions to their problems.
The parties having discussed their disputes at their own and laid in the recognition of
collective agreement the parties may request the help of the government in resolving their
dispute through conciliation. This is the process of helping the parties to develop
and adhere to laid down procedures in order to settle conflicts and differences. Some
disputes such as dismissals and other disciplinary actions may need investigations by an
approved investigator by the minister before conciliation process. If the conciliation process
is successful and the trade dispute is settled then the terms are required to be written and
endorsed by all involved parties.
5. Arbitration- If the conciliation process in unsuccessful and the minister has exhausted all
the available machinery for voluntary settlement, he may refer the trade dispute to industrial
court for arbitration. Arbitration is the process by which a grievance or dispute is resolved by
an impartial third party after leaving all the facts pertaining to the user and then
recommending a solution.
The arbitrator has the authority to make decisions. Voluntary arbitration occurs or happens
when both management and a trade union agree to refer unresolved issue to an arbitrator.
Compulsory arbitration although through a third neutral party is forced or the parties to
submit to an arbitration for instance the minister of labour sometimes refer to trade dispute to
industrial court for arbitration. This kind of arbitration is provided in the law in order to
maintain industrial peace. The industrial court has its right to make binding decision.
5.2.2 Industrial court of Kenya
The industrial court of Kenya can be considered as a symbol of public interest in its system
of industrial relations and collective bargaining. It’s the final stage in the process of collective
bargaining and industrial relations system.
It consists of:
i} A judge appointed by the president
ii A representative of ministry of labour
iii} A representative of COTU ( Central Organisations of Trade Union)
iv} A representative of FKE (Federation of Kenyan Employees)

Industrial court adjudicates matters relating to:

- Rates of pay including the period and mode of payment
- Hours of work and rest intervals
- Leave with wages and also holidays
- Discharge on dismissal of employees
- Rules of discipline
- Compensatory and other allowances
- Any other trade dispute between an employer and an employee/group employees

5.2.3 TRADE UNIONS

A trade union is a continuous association of workers for the purpose of maintaining and
improving the conditions of their working life. In general, trade union may be defined as an
organisation of employees formed primarily for the purpose of pursuing the interests of the
members. Trade Unions are concerned with their members’ welfare and the effect
organizational policies have on the members. Their success depends on members’
participation as individuals and as groups. There are many reasons why workers join trade
unions. The primary reason is to obtain economic advantage. They view trade unions as a
vehicle for achieving higher wages, greater for achieving higher wages, greater benefits and
improved work conditions. Trade Unions also offer psychological satisfaction, like the feeling
of protection form victimisation and threats related to their job security.

5.2.3.1 Objectives of trade unions

i} Trade unions act to secure better wages of their members

in keeping with the prevailing standards of life and cost of
living
ii} They work to attain better working conditions for workers such as shorter working hours,
leave with pay social security benefits and other welfare facilities.
iii} They foster a sense of self-respect and dignity among the workers.
iv} They help workers fulfil their social needs through such activities as educational, health
and welfare groups.
v} They strive for securing stable employment for workers by working against retrenchment.
vi} They foster a sense of security among the workers.

5.3 Discipline and Disciplinary Procedures

5.3.1 Features of an effective disciplinary procedures

An important part of an employee relations policy is to set out the broad standards of contact
which the organisation intends to follow in respect of:
- Unacceptable behaviour on the part of employees i.e. disciplinary matters.
- Grievances raised by the employees.
Disciplinary procedures may include the following features:
i} Be in written form
ii} Should specify to whom they apply
iii} Should indicate the forms of disciplinary action which may be taken
iv} Should specify the appropriate levels of authority on management to exercise the various
disciplinary actions.
v} Should provide for individuals to be informed on the nature of complaint against them.
vi} Allow individuals to state their case and to be accompanied by a fellow employee or union
representative.
v} Ensure that every case is properly investigated before any disciplinary action is taken.
vi} Provide for a right of appeal against any disciplinary action and specify the appeals
procedure.

5.3.2 DISCIPLINE
Every organisation requires a disciplined labour force in order to achieve its objectives.
Employee discipline is orderly behaviour or adherence to the laid down rules and regulations
is penalty for misbehaviour or the violation of the organisation’s rules. Therefore discipline is
the action taken by management against an individual or group who have failed to follow the
established rules and procedure s within the organisation.
There are two common approaches to discipline:
a} Positive Discipline
This is where discipline is enforced through positive actions such as counselling the
employee, training, transfer to a challenging position, use good examples by managers etc. It
fosters corporation and a high level of morale among employees so that written and
unwritten rules and procedures are obeyed willingly.
b} Negative Discipline
This approach means behaviour control by force threats, demotions, criticizing the worker in
the presence of colleagues dismissals etc. Although it may be necessary in some situations
it is a failure in itself because it often produce minimum output from employee and they show
dissatisfaction in many other ways.
c} Progressive Discipline
Whatever approach is used in disciplining the employees progressive discipline should be
followed for good employee relations. Progressive discipline involves oral warning, written
warning, suspension and discharge. The factors considered are:
i} Degree of severity of the offence
ii} Employees’ length of service with the organisation
iii} Provocation, if any, that may have led to the offence
iv} Previous warning or other disciplinary actions for previous offence.
v} The clarity of organisation rules and procedures
vi} Employees’ pattern of conduct

5.3.3 Basic Rules of Enforcing Discipline

- Immediacy
- Advance warning
- Consistency
- Impersonality
- Documentation
1. Immediacy
Disciplinary action should be taken as soon as possible, after the violation has been noticed
i.e. the manager or the supervisor should act immediately. Discipline should be directed
against the act and not the person, it should be immediate and consistent.
2. Advance Warning
All employees should know in advance what is expected of them and what the rules and
procedures are. They need to be aware of which actions or behaviour will lead to what
disciplinary action. Despite the fact that there are written rules and procedures, employees
should be reminded constantly what is expected of them.
3. Consistency
Supervisors and managers should be consistent in the application of disciplinary action i.e.
given similar circumstances and same nature of offence, similar disciplinary action should be
applied.
4. Impersonality
Discipline should be directed to the act and not against the person. The employee should be
treated as if nothing had happened after disciplinary action has been taken.
5. Documentation
When any disciplinary action has been taken, it is important for the supervisor or manager to
keep a record or what happened and the decision or action taken for future reference if need
be.

5.3.4 Employee complaint and counselling interviews

a. Complaint interview
For an organisation to effectively achieve its goals, it may be necessary to have a
reconciliation of differing personal direction and perception. However, before such
reconciliation can take place, the differing personal perception and directions need to be
made known to the concerned parties. One way of doing there is through complaint
interviews. Frequently, employees will rush to supervisors or managers office to complain
over something that has just happened. In reality, these may, be a case of over activity
because the employee may even not know what can or should be done about the situation.
Another employee is another case may tolerate a situation. Another employee in another
case may tolerate a situation for weeks or months and give it a careful consideration before
approaching the manager or supervisor with a complaint. This cases have different problems
and different people involved and there are some similarities. This shows that there are
many different situations in employee complaint. Although each situation is different, some
suggested approach include the following:
- Listen emphatically to the complaint The manager must remain calm and uncommitted until
the employee has presented the entire story. The main job of the manager or supervisor in
the first step is to listen intelligently and with understanding to the complaining employee.
- Once the complaint has been verbally explained and all facts are disabled both parties
should agree on what the complaint is about.
- After the complaint has been received and the basic issue agreed on the next step is to
consider possible solutions. The complaint should be allowed and In fact invited to
participate in these step. However, keep in mind any laws or company rules that must be
observed no matter what solution is proposed.
- Based on the possible solutions that are discussed and reached in the previous step, the
manager can identify what actions should be taken.
- The interview is then terminated by the manager and communicates this to the employee in
a manner that is satisfactorily to both parties. No one should take advantage of the other
party.
b. Counselling interview
Sometimes employees may seek the help of the manager or supervisor when they have
work related problems or even personal problems. The manager or supervisor interviews the
employee so as to understand the nature of the presented problem. There are two
approaches, which the manager can use depending on the problem.
i} Directive Interview approach
This is where the manager controls the interview process. He asks probing questions and
after understanding the problem he suggests possible solutions. The relationship in this kind
of an interview is superior subordinate. This approach is commonly used when the problem
is work related:
ii} Non Directive approach
In this approach, the manager’s role is passive and his main job is to listen emphatically to
the employee to suggest possible solutions. The manager requests the employee to suggest
possible solutions. The assumption of that the employee is in the best position of solving his
own problems. The manager will only assist probably in identifying the best solution. There is
no superior subordinate relationship in this approach. The approach is suitable when the
problem is personal.

5.4 Grievance Handling procedures

A grievance is a formal complaint or representation by some employees or a group of
employees arising out of employment. It has been defined as any discontent or
dissatisfaction whether expressed or not and valid or not arising out of anything connected
with the company that employee thinks, believes or even feels it’s unfair, unjust or
inequitable.
Grievances are common in every work place. They are as a result of self- consciousness. On
the part of employees who want to protect their interest. Unless the employees are given the
opportunity to ventilate their grievances and the grievances are addressed efficiently and
promptly, there may be frustration, low morale and high labour turnover. Effective grievance
handling is therefore essential for maintaining sound industrial relations.
5.4.1 Grievance Handling Procedure
Management recognises the right of every employee to seek redress for any grievances that
they may have relating to their conditions of employment. The procedure which follows aims
to provide a fair and speedy settlement of grievances as near as possible to their source.
Stage 1
The employee should first raise the matter with his immediate supervisor or manager and
may be accompanied by a fellow employee. The manager or supervisor will attempt to
resolve the grievance without delay.
Stage 2
If the employee is not satisfied with the response of his immediate manager or supervisor, he
may refer the grievance to his departmental manager or any other senior manager who will
hear the grievance within some few days, which should be specified by the organisation.
Stage 3.
If the employee is still not satisfied, he may appeal to the most top manager. The procedure
outlined above is intended to inform employees or their right with matter of grievance while
the procedure gives the employee the opportunity to raise his grievance, at the highest
possible level, the main aim should be to enable such disputes to be resolved as close as
possible to their source.

5.5 Health and Safety programs

Welfare is concerned with the total well-being of employees both at work and at home.
It is defined as employees well being which includes workers physicals conditions and also
human relation needs at workplace. These are two primary areas of benefit to the individuals
from the provision of welfare facilities i.e. physical benefits and emotional or psychological
benefits. Physical benefits would stem primarily from measures to improve health and safety
as well as provision of paid holidays or in reduced working hours. Emotional welfare stems
from any provision made to improve mental health e.g. counseling, improved
communications or anything involving highly interrelated and welfare activities which
have both physical and emotional benefits.

Employers also provide for the material and intellectual welfare of the employees with
material provisions of sick pay and pensions and the intellectual benefits that come from the
provision of satisfying work and appropriate training development. Many provisions are less
clearly seen as welfare especially when they are long standing provisions made by many
employees such as sick-offs, canteens etc. Others are less seen as welfare when they are
put in the contract of employment and therefore seen as standard e.g. holiday entertainment.

5.5.1 Types of Welfare

There are three types of employee welfare:-

 Financial
 Recreational
 Facilities

Financial
These include the provision of pension schemes, insurance schemes, property purchase,
stock purchase and saving plans such as savings and credit cooperative societies. All these
are paid through a check-off system.

Recreational
It includes sports facilities and other recreational activities and facilities. These include
medical services, housing, cafeteria and transport to and from work. Some of the welfare
benefits are requires by law and are statutory, e.g in Kenya pension schemes are provided
under:-
• Pension act cap 189
• Provident find act cap 191
• National social security find act cap 258 medical cover is provided under :-
• National hospital insurance fund act cap 255
However, many organizations in Kenya supplement these programs with their own. Other
benefits are provided voluntarily and in some cases through collective bargaining or union
demands. All employee welfare is undertaken with the understanding that there is a return to
the organization in terms of improved productivity and morale. An organization should
provide only those benefits which employees need and whose absence (maintenance factor)
will affect their performance.
5.5.2 Aims and Objectives of Welfare Activities

Employers take up welfare activities with the following aims and objectives in mind.
1. To win over employees loyalty
2. To boast the morale of employees
3. To give honest expression to philanthropic and paternalistic feelings.
4. To combat trade unionism and socialist ideas
5. To reduce labor turnover and maintain constant labor force in the enterprise.
6. To increase efficiency and productivity of employees.
7. To increase efficiency taxes.
8. To earn goodwill and enhance creditors and public image about the organization
9. To reduce the threat of government intervention
10. To retain intelligent, efficient and effective employees.
11. To make recruitment more effective.

5.5.3 Principles of Labor Welfare Programmes

While setting up a welfare programme, the following should be some in mind:-

Related To Employees Needs

Before launching welfare programmes, a personnel manager should investigate and

determine what employee needs are; and ensure that if satisfies their needs.

Handled by The Group

Cafeteria approach should be followed in a welfare programmme. It should helpful to all the
group members in an organization rather than individualistic in approach for instance an
insurance scheme would be beneficial for all employees rather than asking each individual to
take up a policy. Cost should not Be Prohibitive A cost benefit analysis should be prepared to
see that the programme is not too costly to administrate and manage.

Top Management Cooperation

It should be a mere ritual the top management should actively participate and cooperate with
the union in formulating and effectively implementing the programme. The policies should
demonstrate that top management is concerned about the protection of its employees from
hazards at work and indicate this protection shall be provided.

5.5.4 Employee Safety

Employee health and safety programme occupy a pivotal role in personnel management.
Psychologists, social scientists, sociologists and industrial engineers are nowadays more
concerned with employees’ safety and health because they realized that a health employee
is a productive employee. Health and safety go hand in hand safety is the protection of
employees from injuries due to work-related accidents. These accidents are unplanned and
uncontrolled events which can result in damage and injury to property and person
respectively. Since the organization provides the work and physical plant, office or
establishment, it should be committed to doing everything within reason to protect
employees from risks associated with employment. Accidents may occur in the office while
during a duty and are costly:-
Direct costs – these arise from lawsuits settlements Indirect costs-
1. Cost of supplemently wages and salaries paid to injured employees
2. Loss of production caused by the accidents
3. Costs of training a replacement
4. Costs of supervisors and staff investigating, reporting and recording the accident.
5. Loss of employees’ morale and community refrutation in the case of serious accidents,
particularly fatalities.
6. Cost of damage to property.

5.5.5 Industrial Accident and Industrial Injury

The life of modern industrial worker is risky and hazards. Every year, thousands of
employees get injured in their places of work other resulting in fatal injuries. An industrial
accident is occurrences in an industrial establishment casing bodily injury to a person making
him unfit to resume duties in the next 48 hours. It interrupts and interferes with the orderly
progress of work. Its unexpected and neither anticipated nor designed to occur. However,
self inflicted injuries or inflicted with the persons consent does not constitute an accident.

An industrial injury is “a personnel injury to an employee which has been caused by an

accident or occupational disease and which arises out of or in the course of employment to
compensation act. Health and safety programme/ components/ factors To prevent industrial
accidents and to ensure employee safety, every employer should launch a safety
programme as under:-
a) Analysis of Health and Safety Performance
Health and safety programme must be based on an analysis of the facts on the organization
of health and safety as if exists and on the procedures used and the results obtained. The
analysis focuses on policies, organization, systems procedures and performance. Such
analysis involves discussions with managers, supervisors, operative employees, factory
inspector as well as review of standard procedures and an examination of safety
records.
b) Health Safety Policies
Written health and safety policies are required to demonstrate that top management is
concerned about the protection of its employees from the hazards at work and indicate how
these protections will be provided. The policies have a statement of
guidelines that should be followed by both management and
workers in implementing the policy.
c) Health and Safety Organization
Organizations refer how rules and responsibilities are assigned to the various individuals or
group within the company. They define the roles of management, supervisors, and workers
health and safety committees. Health and safety is a responsibility of every one although the
main responsibility lies with management and implementing safety policies and procedures.
d) Occupational Health Programs and Procedures
These programs are concerned with identification and control of health hazards arising from
toxic substances, radiation, dust, fatigue, stress imposed upon the body and mind at work.
e) Accident Prevention Programs and Procedures.
This is achieved by
1. Identifying cause of accidents and conditions under which they are most likely to occur.
2. Taking account of safety factors when designing the organization including engineering
design of building safety into the system.
3. Designing safety equipment and protective clothing.
4. Conducting a continuous programmed education and training on safe working habits and
methods of avoiding accidents including fire and explosions.
f) Education and training
Health and safety conditions at work do not simply happen. They have to be planned and
managed and an essential part of this process is education and training of managers,
supervisors and workers.

g) Evaluation
This is evaluation of control information and reports and also the effectiveness of the
organization and training systems this evaluation should provide feedback to be used in
improving health and safety performance. Supervisory personnel should be entrusted with
the responsibility of safety programme. Safety should be given due consideration like other
means such as wages and salary A definite safety programme should be securing their
achieve cooperation in order to eliminate industrial accidents.
h) Safety Director
Large scale industrial undertaking employ a safety director, who serves in a staff capacity to
educate line managers on safety measures that should be adopted to prevent accidents and
to impress from them that they are responsible for safety of workers. The safety director acts
as an innovator, organizer, creator, advisor, teacher analyzer. He should organize the safety
programme throughout the plant, collect accident data investigate accident help develop
engineering applications, conduct safety training and information meetings for management
personnel analyse jobs to develop safe working procedures and prepare instructional
materials for safety foreman when they conduct meeting with their men. In Kenya safety
officers are appointed in large organizations. The functions of a safety officer are to formulate
safety requirements safety policy and to assess critically safety requirements and standards
of the company besides organizing safety education, training and publicity.
i) Safety Engineering
Every organization adopts safety engineering in order to eliminate work hazards and risks
proposed by the operation of machines by the processes of the manufacture of products and
by the structure and layout of plant and equipment. Employees are expected to use safety
glasses, hard protective caps, hard gloves, gas masks, safety shoes, and the engineer
should ensure they are available and provided to the employees.
k) Safety Education and Training
For a successful safety programme, safety education and training is necessary for all
personnel in an organization or factory. Safety education develops safety consciousness
among employees and results in safe handling of equipment. It also ensures safe work
performance of the part of every employee by developing skill in the use and operation of
equipment. During training, employees are target the principles of first aid, the need for
avoiding machine hazards how to take precautions to avoid fines, how to use hard
tools profusely and how to protect the body parts. Every organization displays safety Posters
to promote safety publicity. Employees may also be shown films on safety and
asked to suggest some safety schemes. To make safety programmes successful both
positive motivation (reward for those in strictly observe and fellow safety programmes)
And disciplinary action. (for violating safety rules and regulations) in terms of reprimands
fines lay-offs are essential.

Accident analysis and tabulation are essential to verify success of implementation of safety
programme. The safety director should investigate and report on every accident
and prepare a summary of all injuries sustained during a particular period. The classification
should be department-wise, plant-wise, shift – wise etc. so that rectification measures can be
taken to check the recurrence of accidents and maintain safety.
5.5.6 Causes of Accidents
These can be classified under

Technical

These are unsafe working conditions such as deficiencies in plant, machinery, tools,
equipment, materials and general work environment It would include improper lighting, poor
machine guarding, poor house-keeping excessive noise, inadequate ventilation and
inadequate working space.

Human

This would include unsafe situations such as deficiencies of individual on carelessness,

reckless, improper attitude, mobility to perform the job well. Lack of training, ignorance, poor
physical and mental health

5.5.7 Accident Prevention Programs and Procedures/Approaches to Safety Problems

Engineering
This is concerned with the physical environment and concentrates on reducing technological
hazards by redesigning machines, equipment and working procedures.

Selection
This involves identifying the physical and psychological characteristics that makes an
individual likely to cause accident. There are people who make mistakes whenever they
attempt to do anything. The idea is to identify employees with such tendencies.

Lines & Staff

The altitude of sank and file in most cases is a reflection of immediate supervisors altitudes.
Fine managers should set examples by demonstrating the seriousness of safety measures.
Accidents are partly fault of individuals partly technology and other factors like altitude and
improper supervision. In light of this safety must be considered as the responsibility of
every one in the organization. Any attempt to departmentalise kit may lead to confusion and
inefficiency.

Unit summary
Summary
In this unit you learned
To Give the meaning and definition of employee relations.
To Understand the various rules and agreements
To Explain the industrial relations system in Kenya.
To Appreciate the role of trade unions in organisations.
To Understand Disciplinary Grievance handling procedures.
To Understand Health and safety standards in organisations.

Assignment
Assignment
Q1. a. Describe the industrial relations system in Kenya.
b. Outline the role of ministry of labour in industrial relations.
Q2. a. Explain why it’s not easy to negotiate for terms and conditions of employment where
there is no collective bargaining agreement.
b. Describe the characteristics of an effective disciplinary procedure.
Q3. a. Explain the features of a valid contract of employment.
b. To what extend is the industrial court of Kenya an essential component of industrial
relations.
Q4. a. Describe five major types of negotiable issues that trade unions pursue in their
collective negotiations.
b. What is a grievance and what is a dispute. How is each resolved?__

Assessment
Assessment
1. As the assistant human resource officer, your department has been fronted by Timsales ltd to draft
a welfare programme to improve employees motivation. This programme will be presented to the
management in the next board meeting via a power point presentation. You are required to write all
the points to be explained in this presentation.
2. As the assistant human resource officer, your department has been fronted by nakumatt holdings ltd
following the tragic fire incident to draft a safety programme to protection of employees as well as
customers incase of a disaster. It should also capture all the ways that disasters can occur in a
premises. This programme will be presented to the management in the next board meeting via a power
point presentation. You are required to write all the points to be explained in this presentation.

Unit 6
Separation
Introduction
If the first function of Human resource management is acquiring, the last function is separation. It is
returning the employee back to the society.
Upon completion of this unit you will be able to:
Outcomes
[verb] Understand the meaning of separation.
[verb] Appreciate its importance in today’s organisation.
[verb] Explain the different types of separation.
[verb] Discuss the redundancy policy.
[verb] Outline the various types of redundancies.
[verb] Appreciate methods of reducing the problems faced during
redundancy.

6.1 Meaning and definition

SEPARATION

If the first function of personnel management is to acquire an employee, its logical that the
last function should be separation. It occurs when the employment relationship is terminated
and the employee leaves the organization. The decisions can be initiated by the employer as
the employee. These may be retirements, lay-offs, downsizing, retrenchment, resignation,
discharge, dismissal and death. Since employees will enter and leave the organization at
one time, there is a movement of employees called turnover.

An analysis of turnover in a company enables the H.R experts determine stability index.
However, a high turnover can be very costly due to hiring costs, training, accidents, loss of
production, overtime costs e.t.c
6.1 Retirement Schemes

6.1.1 Retirements

In all organizations there must be stipulated retirement regulations, including mandatory and
voluntary retrenchments. Since retirement is an important stage in the career life cycle an
organization has an important role to play in this transition facilitation. It’s an important
opportunity for retirees to make more decisions about their own personal and social lives.

6.1.2 Mandatory retirement

Management should consider the pros and cons of mandatory retirement.
Advantages:-
 Its simple to administer
 It creates an opportunity for younger employees to exploit their potential
 It aids human resource forecasts and plans
 It enables employees to plan for their exit well in advance
 Reduces inequities in decision making in regard to separation
Disadvantages:-
Crucial talent may be lost and may induce some workers to “retire” while still holding on their
jobs during their twilight years. Retirement therefore is stopping to work after attaining a
predetermined age as the worker can no longer maintain the pace or is not willing to work
anymore. Various occupations have different retirement ages.

It’s the responsibility of employer to make retirement plans for employee and also educate
them on how to plan for retirement and spend the period. Many organizations have
retirement benefits for their employees.

6.1.3 Resignation/ Termination

In some cases, some employees do resign or terminate their services for a number of
reasons. These include:-
 New and seller employment offer elsewhere
 Joining a spouse and other family obligations
 Ill-health
 Poor working conditions
 Poor management
During probation, an appointment may be terminated by one party giving the other a one
month notice in writing or by paying one month’s gross salary in view of notice.
Teachers on permanent and pensionable terms are required to give or receive three months
notice.
Resignation also referred to as voluntary worker turnover should be avoided at all costs
because not only does it place a heavy burden (financial) on management but is a
manifestation of poor worker management. On the other hand, some resignations are
healthy as they provide voluntary awareness for good riddance and help cushion
organization again of pending redundancies. Employees should exit peacefully without
causing resentment.
6.1.4 Dismissals
Also referred to as discharge is the most painful method of worker separation.
This is because as employee being dismissed is considered undesirable due to poor
productivity or indiscipline. Employees are however protected against unfair dismissals
through union/management agreements which stipulate for grievance and disciplinary
procedures.
Its usually a traumatic experience as employees experienced sheltered egos and brings
financial, social and family problems. Those who remain may also be sheltered by loss of a
dear friend. It’s therefore necessary for the company to develop two way communications
and assure them of their continued security and management strategies for their welfare.

6.1.5 Death

This is a natural attrition. Its important that organizations put in place mechanisms such as
good health and counseling programmes which will ensure good continued physical and
mental health of employees. Though its inevitable it leads to a great economic and social
loss to type organization, families and friends. With the current AIDS pandemic among all
cadre of the work force, death can no longer be seen just as a natural attrition But a major
decimator of the entire workforce and work skills. HR managers must now more than ever
before re-emphasise their human resource forecasts and plans to counteract the effects of
high mortality rates among the workforce occasioned by the AIDS scrounge.

6.2 Redundancy policy

Redundancy (lay offs)

It is any situation where changes in the organizations economic, operational, or technological
position results in and reduced demand for man power. It has been variously referred to as
layoffs, downsizing, and rightsizing, reduction in force or retrenchment. It’s the most painful
exercises which HRM have to deal with this is because it involves an abrupt loss of earnings,
separation from colleagues, loss of personality and many uncertainties. It’s therefore
imperative that in case of an imminent redundancy, an employer must consult the relevant
trade union well in advance about an impending redundancy.

6.2.1 TYPES OF REDUNDANCIES

Job Redundancy
This occurs when a particulars job ceases to exist but the incident employees are assigned
alternative work or job within the organization.

Worker Redundancy
Occurs when employees loose their employment because of overstaffing. i.e. very little work
being done by too many people.

6.2.2 MEASURES USED TO MINIMIZE PROBLEMS OF

REDUNDANCY
Planning Ahead
It’s important for the HRM to plan for reduced staff needs in the future. With proper human
resource forecasts and plans the future reduction in staff needs can be cushioned through
national attrition, by reducing or freezing recruitment of new staff.
Voluntary Redundancy
This is a method which is used for enticing volunteers to terminate their services with a
handsome pay-off or golden handshake. For workers to be persuaded to leave the offer must
be well above the statutory rates. Unfortunately the organization may lose some of its most
needed workers.

Applying contingency measures

Some of the contingency measures that could be applied include

 Terminating part time service
 Eliminating overtime
 Removal of out-sourced contracts
 Job sharing
 Applying temporary lay-offs
 Outplacement
This is where redundant employees are assisted in finding alternative employment
elsewhere. For outplacement to be beneficial there is need for counseling programmes
which help the affected worker to fit into new careers more effectively
Application of Effective Redundancy Procedures

When the circumstances force management to lay-off employees, its imperative that
redundancy procedures adapted is fair and equitable for all workers, some of the objective
and effective procedures include the principle of last in first out, and use of objective
performance appraisal records. Concerted efforts must be expended in helping to outplace
the affected workers and redundancy pay off must be seen to be fair to be affected
employees.

Handling Redundancy

Redundancy may be due to:

 Increase in the level of economic activity for instance flunctuations may lead to a
decline in demand for the products.
 Introduction of technological changes.
 The organization of work situation.
 Shortage of raw materials/equipment components which affect the ability to produce.
 Mergers or relocation of the organizations.
Whenever any of the above factors is likely to cause redundancy, management must notify
the employees and also the ministry of labor.

6.2.3 Redundancy policy and procedures

Both management and trade unions need to agree on a redundancy policy and procedures
in advance. Essentially this must be included in the collective bargaining agreement. The
implication of agreeing to a redundancy policy and procedures is that its accepted that there
can be a redundancy. The management must have to agree on the level of compensation
which at times may be more that they can or are willing to pay.

The redundancy policy and procedures should include:

 Management union agreement on how the redundancy will be effected.
 Identifying who will be affected.
 General principles to be applied in any redundancy situation except the specific
details which must be worked out at the time of redundancy.
An established redundancy policy and procedure reduces the level of emotions that can
arise in a situation. The management’s objectives should be not only to reduce its labor force
and costs but to maintain the morale and the goodwill on the remaining employees. On the
other hand, the trade unions objectives are basically to resist and minimize redundancy and
at the same time secure the best possible terms for those employees who are likely to be
made redundant. Some of the measures that can be included in the redundancy policy and
procedures could be:

 Stop eon subcontracting out work of the organization and even call back any
subcontracted work.
 Reduction/removal of overtime and also part-time jobs.
 A stop on recruitment i.e. hiring freeze.
 Shorter working hours i.e. reducing working hours reasonably.
A redundancy policy and procedures should be in line with a country’s established labor laws
as well as the government policy on employment.

6.2.4 Redundancy Selection Criteria

It’s important that the management set criteria, which will be applied either across all or parts
of its labor force. If redundancy is applied across all organizations, it means all departments
and all levels in the hierarchy will be affected. When applied to a part of the labor force, it will
only affect certain departments and types of employees.

Criteria

 Last in First out.

 Qualifications and flexibility.
 Level or category of employees.
 Productivity or efficiency of a group of employees.
 Age or length of service.
 Past conduct or file record.
 Suitability for alternative employment within the firm.
Last in first out

This is the most important aspect used and the one favored by trade unions. The principle
underlying this approach is that the longer the employee has been with an organization, the
greater his implied right to a job and therefore redundant employees should be selected on
the basis of their length of service. By using seniority of service, management avoids
favoritism and discrimination. In this way, the organization retains an employee who has a
long service and possesses the required skills or experience.

Efficiency

In the absence of trade unions and financial constraints, many organizations would select
their redundant employees from among those who show poor work performance, habitual
absenteeism, lateness, or any other form of indiscipline. However, trade unions tend to resist
this approach unless they have been provided with prior information showing that such
shortcomings really exist. This means the necessity for using efficiency criteria during
redundancy will depend on the management having adequate information relating to
individual employee, work performance and conduct. While the two approaches can be use
at different times under different circumstances, it’s equally important to have a policy that
can allow the use of a combination of both at any one given time. However, there is a great
need for consultation and negotiation between management and trade unions to minimize
conflicts. A policy as to when and where to use any of the two or a combination as selection
criteria for redundancy should be contained in the Collective Bargaining Agreement (C.B.A.).

Qualifications and flexibility

Depends on how an employee is more qualified than the other. Less qualified employees
are the one normally selected for redundancy.

Age

The older an employee is, the more easily he/she will be selected for redundancy than the
younger employees.

Special cases

The more knowledgeable and expertise an employee has, the less

likely is he/she to be selected for redundancy and vice versa.

Unit summary
Summary
In this unit you learned
The meaning of separation.
How to appreciate its importance in today’s organisation.
To Explain the different types of separation.
To Discuss the redundancy policy.
To Outline the various types of redundancies.
To Appreciate methods of reducing the problems faced during
redundancy.

Assignment
Assignment
1. Explain why it is important for Human resource management students to study separation
as a function of Human resource management.
2. How would you formulate a redundancy policy and what are the main factors that you
would consider.
3. Highlight the role of the organisation and individual in planning for employees’ retirement.
4. Explain the steps to be taken before a summary dismissal decision in a progressive
discipline._

Assessment
Assessment
1. Telkom (K) ltd intends to retrench 500 employees in phases within the next 3 years. As a human
resource department, your terms of reference indicate that you are to draft a redundancy policy to
ensure that professionalism is used in this operation. Please draft this policy to be presented to the
board of directors during the current financial year.
2. You are also required to come up with a criteria that can be used for selecting those to leave the
organisation without bias or favour.
Unit 7
7.1 Personel records and statistics
Introduction
Every employee upon employment in a certain organisation ought to have personal data as evidence of
employment. This details are kept in the company data in manual files or computer hard disk. This
chapter explains the format of this information and its storage purpose.
Upon completion of this unit you will be able to:
Outcomes
[verb] Understand the importance of personel records for the employee
as well as the employer.
[verb] Appreciate the paradigm shift from the manual filing of personel
records to the Human resource information systems.
[verb] Explain the purpose of having personnel records.
[verb] Understand the importance of Computerised personel records.
[verb] [complete the sentence].
[verb] [complete the sentence].

7.1 Purpose
7.1.1 Personal records provide the following:

1. A store of up to date and accurate information about the company’s employees.

2. A guide to the action to be taken regarding an employee particularly the rates of pay
received by comparable employees.
3. Historical record of previous action taken regarding employees
4. The raw materials for statistics which check and guide personnel policies The means to
comply with certain statutory requirements, specific information about individual employees
is called item information. Summaries of item information on group of employees, which
enable the company to define the general characteristics of various types of workers, is
known as a profile information.
7.1.2 Personal Documents
An employees personnel record begins with the application form which he/she completes
when applying for a job. To these is added the copy of the letter formally offering the job and
employees acceptance. This paper usually put into an envelope or folder, which becomes a
personal file. From time to time, other documents are put into the personnel files e.g.
Appraisal reports, applications for promotion, sickness certificates etc. A summary of the
information in the personnel file is made on an employee record which is set out in such a
way that its easily read and compared with other employees record. It’s usually filed
departmentally, unlike personal files which are filed alphabetically.
7.1.3 The employee record

The essential details to be included in the employee record/card are:

a) Personal data
- Name, address and telephone number
- Company number if nay
- Sex
- Date of birth
- Marital status
b) Company data
- Date of joining the company
- Past and present departments and dates
- Past and present job titles
- Reasons for changes
- Absence records
- Accident record
- Hours of work
- Holiday entitlement
- Retirement dates and pension scheme membership
- Disciplinary warnings`
c) Qualification and skills
- Formal education
- Professional qualifications
- Training records
- Appraisals
d) On leaving the company
- Date of leaving and reason
- Name of new employer (if known)
- Suitability for re-employment
Once included in the employee record, any information must be kept up to date which in
many cases is a considerable clerical task.

7.1.4 Computerised record systems

In many companies, employee records are kept in card indexes or loose leaf binders. A
computer can store many times more information than a card index system.

Advantages
1. In a modern system, information is immediately available either on a visual display units or
a printer.
2. Sorting of a data can be done as required e.g. list of employees can be quickly produced
according to a desired category.
3. Any form of summaries can be done quickly and accurately e.g. the number of employees
in each category and employee statistics can be easily produced.
4. Ready made programs may be purchased and personnel staff can easily be trained to
interrogate the computer or insert new and changed information.
5. More information can be stored hence avoiding loss of documents.
7.1.5 Essential personnel statistics
1. Total number of employees subdivided as far as possible into departments, age groups,
gender etc.
2. Number of accidents reported to the health and safety officer analysed by departments
and cause.
3. Labour turnover and stability rates.
4. Absenteeism, data analysed by departments and cause.
5. Statistics required by government agencies e.g. NSSF, NHIF, PAYE, KRA etc.
6. Data for human resource planning such as employee skills, training.

Unit summary
Summary
In this unit you learned
To Understand the importance of personel records for the employee as
well as the employer.
To Appreciate the paradigm shift from the manual filing of personel
records to the Human resource information systems.
To Explain the purpose of having personnel records.
To Understand the importance of Computerised personel records.

Assignment
Assignment
1. Explain the importance of personnel statistics.
2. What benefits are accrued by an organization that has computerized its personnel
records.
3. What is the purpose of personnel records in an organization.
4. Highlight the kind of data found in personnel documents of an employee.

Assessment
Assessment
1. The company you work for intends to introduce a Human Resource Information System to improve
on the current manual records used to store personel data. In order to justify the kshs. 2,000,000 it will
use for this venture, you have been asked as the human resource officer to draft a proposal which
should include the advantages of this worthy cause. Explain.
2. Indicate in this draft proposal all the information that is required to be stored to ensure enough data
is captured.

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