CERTIFICATE IN PERSONNEL MANAGEMENT

PERSONNEL MANAGEMENT

Objectives

This module unit is intended to equip the trainee with knowledge, skill and
attitude that will enable him or her carry out resource management.

By the end of the module the trainee should be able,

 Appreciate the importance of human resource in an organization.

 Understand the leadership skills in an organization.
 Describe the human resource record.
 Understand wages and salary administration.

 Explain and the recruitment procedure and test used.

Wks Topic Sub topic Reference

1 Introduction  Definition Shaun, T., Alfred, Y. (2000).

 Purpose and Essentials of Human Resource

importance of Management, 4th edition,

human resource Oxford Amsterdam. Boston.

management London
2$3 Evolution of  History of human Shaun, T., Alfred, Y. (2000).
Human resource resource Essentials of Human Resource
Management management Management, 4th edition,
 Distinction between Oxford Amsterdam. Boston.
HRM and general London
management
4 Manpower  Introduction Shaun, T., Alfred, Y. (2000).
planning  Function of Essentials of Human Resource

planning Management, 4th edition,

 methods of Oxford Amsterdam. Boston.

 forecasting London
 characteristics of
manpower
 job analysis
 job specification
 job description
6 Job Evaluation and  techniques Shaun, T., Alfred, Y. (2000).
Grading  uses Essentials of Human Resource

 adavantages and Management, 4th edition,

limitations Oxford Amsterdam. Boston.

London
8 Staffing  Introduction Shaun, T., Alfred, Y. (2000).

 Recruitment Essentials of Human Resource

 Selection process Management, 4th edition,

testing Oxford Amsterdam. Boston.

 Induction/ London

orientation
9 Compensation  Introduction Shaun, T., Alfred, Y. (2000).
and motivation  Reason for Essentials of Human Resource

paying Management, 4th edition,

employees Oxford Amsterdam. Boston.

 Types of wages London

 Difference
between wagws
an ssalaries

CHAPTER 1

INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

Meaning of Human Resource Management

French Wendell, defines ― Human resource management as the recruitment,

selection, development, utilization, compensation and motivation of human
resources by the organisation.

According to Edwin B. Flippo, ―Human resource management is the planning,

organising, directing and controlling of the procurement, development,
resources to the end that individual and societal objectives are accomplished.
This definition reveals that human resource (HR) management is that aspect of
management, which deals with the planning, organising, directing and
controlling the personnel functions of the enterprise.

Generally HRM refers to the management of people in organizations. It

comprises of the activities, policies, and practices involved in obtaining,
developing, utilizing, evaluating, maintaining, and retaining the appropriate
number and skill mix of employees to accomplish the organization’s objectives.
The goal of HRM is to maximize employees’ contributions in order to achieve
optimal productivity and effectiveness, while simultaneously attaining
individual objectives (such as having a challenging job and obtaining
recognition), and societal objectives (such as legal compliance and demonstrating
social responsibility).

In short Human Resource Management (HRM) can be defined as the art of

procuring, developing and maintaining competent workforce to achieve the
goals of an organization in an effective and efficient manner.

Human Resource Management is a process, which consists of four main

activities, namely, acquisition, development, motivation, as well as maintenance
of human resources.

There are two different definitions. The first definition of HRM is that “It is the
process of managing people in organizations in a structured and thorough
manner.”This covers the fields of staffing (hiring people), retention of people,
pay and perks setting and management, performance management, change
management and taking care of exits from the company to round off the
activities. This is the traditional definition of HRM which leads some experts to
define it as a modem version of the Personnel Management function that was
used earlier.

The second definition of HRM encompasses “The management of people in

organizations from a macro perspective, i.e. managing people in the form of a
collective relationship between management and employees.” This approach
focuses on the objectives and outcomes of the HRM functions. It means that the
HR function in contemporary organizations is concerned with the notions of
people enabling, people development and a focus on making the “employment
relationship” fulfilling for both the management and employees.

In simple words, Human resource management is management function that

helps manager to recruit, select, train and develop organization members. Or
HRM is a process of making the efficient and effective use of human resources so
that the set goals are achieved.

In general terms, Human Resource Management is “concerned with the people

dimension in management. Since every organization is made up of people,
acquiring their services, developing their skills, motivating them to high levels of
performance and ensuring that they continue to maintain their commitment to
the organization are essential for achieving organizational objectives. This is true
regardless of the type of organization government business, Education, Health,
regression or social action

In the words of Dunn and Stephens, “The HRM is the process of attracting,
holding and motivating all manager line and staff.

Structure/sections of Human Resource Department

1. Procurement of HR
2. Development of HR
 3. Remuneration of HR
4. Integration of HR
5. Maintenance of HR
6. Separation of HR
1. HR Procurement
This is the first operative function of HRM. It is concerned with obtaining proper
kind and number of personnel necessary to accomplish the organization’s goals.
It specifically deals with such subjects as the determination of HR requirements
and their recruitment, selection and placement. The determination of the HR
required must rest upon a prior design of job duties, a decision that is
increasingly being affected by the Hr manager’s objective of meeting human
needs.

2. Development of HR
After personnel have been obtained, they must be developed to some degree.
Development has to do with the increase of skills through education and training
that is necessary for proper job performance. This is an activity of very great
importance and will continue to grow because of the changes in technology that
the re-alignment of jobs and the increasing complexity of managerial tasks.
Training is for acquisition of skills and a sub-set of education.
3. Remuneration/Compensation
This function is defined as the adequate inequitable remuneration of personnel
for their contribution to the organization’s objectives. It basically concerns itself
with job evaluation, wage policies, wage systems and some of the recently
devised extra-compensation plans.

4. Integration of HR
With the employee procured and reasonably compensated, there follows one of
the most difficult and frustrating activities for the management i.e. integration.
Integration is concerned with the attempt to effect a reasonable reconciliation of
individual, organizational and societal interests.
5. Maintenance of HR
If we have executed the foregoing functions well, we now have a willing and
able workforce. Maintenance is concerned with the perpetuation of this state i.e.
willing and able workforce. The maintenance of willingness is heavily affected
by communication with employees. The physical condition of employees should
be maintained while the health and safety of individuals and groups will be of
utmost importance here.
6. Separation of HR

If the first function of HRM is to secure the employee or member, it is logical that
the last function should be separation and return of that person to society. Most
people don’t die on the job. The organization, and in particular HR, is
responsible for meeting certain requirement of due process in separation as well
as ensuring that the returned person is in as good shape as possible. This
therefore calls for proper retirement, lay-offs, outplacements, discharge and
termination.

Functions of Human Resource

The main functions of human resource management are classified into two
categories: (a) Managerial Functions and (b) Operative Functions

(a) Managerial Functions Following are the managerial functions of Human

Resources Management.

1. Planning : The planning function of human resource department pertains to

the steps taken in determining in advance personnel requirements, personnel
programmes, policies etc. After determining how many and what type of people
are required, a personnel manager has to devise ways and means to motivate
them.

2. Organization : Under organization, the human resource manager has to

organize the operative functions by designing structure of relationship among
jobs, personnel and physical factors in such a way so as to have maximum
contribution towards organizational objectives. In this way a personnel manager
performs following functions:

(a) preparation of task force; (b) allocation of work to individuals; (c) integration
of the efforts of the task force; (d) coordination of work of individual with that of
the department.

3. Directing: Directing is concerned with initiation of organised action and

stimulating the people to work. The personnel manager directs the activities of
people of the organisation to get its function performed properly. A personnel
manager guides and motivates the staff of the organisation to follow the path
laid down in advance.

4. Controlling: It provides basic data for establishing standards, makes job

analysis and performance appraisal, etc. All these techniques assist in effective
control of the qualities, time and efforts of workers.

(b) Operative Functions : The following are the Operative Functions of Human
Resource Management

1. Procurement of Personnel: It is concerned with the obtaining of the proper

kind and number of personnel necessary to accomplish organisation goals. It
deals specifically with such subjects as the determination of manpower
requirements, their recruitment, selecting, placement and orientation, etc.

2. Development of Personnel : Development has to do with the increase through

training, skill that is necessary for proper job performance. In this process
various techniques of training are used to develop the employees. Framing a
sound promotion policy, determination of the basis of promotion and making
performance appraisal are the elements of personnel development function.

3. Compensation to Personnel : Compensation means determination of adequate

and equitable remuneration of personnel for their contribution to organisation
objectives. To determine the monetary compensation for various jobs is one of
the most difficult and important function of the personnel management. A
number of decisions are taken into the function, viz., job-evaluation,
remuneration, policy, inventive and premium plans, bonus policy and co-
partnership, etc. It also assists the organisation for adopting the suitable wages
and salaries, policy and payment of wages and salaries in right time.

4. Maintaining Good Industrial Relation : Human Resource Management covers

a wide field. It is intended to reduce strifies, promote industrial peace, provide
fair deal to workers and establish industrial democracy. It the personnel manager
is unable to make harmonious relations between management and labour
industrial unrest will take place and millions of man-days will be lost. If labour
management relations are not good the moral and physical condition of the
employee will suffer, and it will be a loss to an organisation vis-a-visa nation.
Hence, the personnel manager must create harmonious relations with the help of
sufficient communication system and co-partnership.

5. Record Keeping : In record-keeping the personnel manager collects and

maintains information concerned with the staff of the organisation. It is essential
for every organisation because it assists the management in decision making
such as in promotions.

6. Personnel Planning and Evaluation : Under this system different type of

activities are evaluated such as evaluation of performance, personnel policy of an
organisation and its practices, personnel audit, morale, survey and performance
appraisal, etc.

Role of Human Resource Manager

i. Helps management in the preparation adoption and continuing evolution of

personnel programmes and policies.
ii. Supplies skilled workers through scientific selection process.
iii. Ensures maximum benefit out of the expenditure on training and development and
appreciates the human assets.
iv. Prepares workers according to the changing needs of industry and environment.
v. Motivates workers and upgrades them so as to enable them to accomplish the
organization goals.
vi. Through innovation and experimentation in the fields of personnel, it helps in
reducing casts and helps in increasing productivity.
vii. Contributes a lot in restoring the industrial harmony and healthy employer-
employee relations.
viii. Establishes mechanism for the administration of personnel services that are
delegated to the personnel department.

CHAPTER 2

EVOLUTION OF HUMAN RESOURCE MANAGEMENT

Evolution of Human Resource Management

Nevertheless, six major stages can be identified in the British version of the
evolution of Human Resources Management.

The first phase is the Welfare - Era (1915 – 1920s). This was the period that the
management of factions have to provide employees with welfare facilities such
as canteen, medical centres and showed interest in employee’s personal well-
being.

The second is Personnel Administration which covered 1930’s – 1940’s. The need
to provide factory managers with personnel support services in the area of
recruitment, training and record keeping here accentuated by the great
depression of 1930’s The personnel management phase I as they are in two (2)
phase’s spans 1940’s – 1970’s. The first phase is between 1940’s to 1950’s. The era
witnessed an enlargement of personnel functions from the mere provision of
welfare and support services to other, they personnel functions from the mere
provision of welfare and support services to other key personnel functions: such
as appraisal compensation, and bargaining, designated welfare officials now
transformed into labour matters and become involved in industrial relation
practices. The environmental factor responsible for this rapid transformation
from personnel administration to personnel management was, the World War II
which led to the scarcity of required personnel needed to keep the factories in
operation. However, it must be stated that during this period, personnel
management was practiced at the tactical level.

The Personnel Management Phase II Spans (1960’s – 1970’s). This was more
developed stage of human relations in which services and functions provided in
the rudimentary Stage that characterized phase one was extended into
organizational and management levels. These included a systematic and
scientific training, manpower planning and salary administration.

Concepts such as organizational development and job enrichment were

integrated into the personnel function. Industrial relations became a major pre-
occupation and this period witnessed production bargaining. Just as welfare
officers become labour managers so did personnel managers evolve into
personnel directors and consequently attended the meeting of board of directors
and participated in the formulation of business policies and strategies, however,
their involvement in formulating strategies was limited to the parochial and
streamlined functions assigned to the personnel department.

As was the case in Personnel Management whose stages were in two phases so
also was that of the Human Resources Management.

The phase one of the Human Resource Management was in the 1980’s. This
concept evolved from the writings of American academics. It wasconceptualize
to reflect the practices of hitherto personnel specialistadjusting to the work place
culture and dynamic market. The focus shifted from mere management of people
to an attempt by the personnel specialist to contribute to the overall growth of
the firm by strategies. This goal of contributing to the growth of the organization,
necessitated the rise of such concept as performance related pay and
performance management system.

The Human Resources Management Phase two was in the 1990’s. During this
period, the concept emphasized the virtues of team work, empowerment and
continuous development in the learning organization. The role of Human
Resources in total quality management also came to the forefront; new
approaches were developed to such processes as culture management, reward
management and management development. With the re-structuring of
organizations and its attendant consequences on staff strength, personnel
directors become involved in redundancy and downsizing exercise in other to
maximize the gains of the firm. The importance of being strategic was buttressed
and human resources specialist became more concerned with bench marking in
order to establish the best practice.

Differences between Human Resource Management and Personnel Management

Human resource
Basis Personnel management
management

Human resource
Personnel managementmanagement means the
means to managemanagement activities that
Meaning manpower and to maintainfocus on the effective use
their relationship with theof manpower in order to
organization.(Reese, 2012) achieve organizational
goals.

As per performance
Basis of pay As per job evaluation.
evaluation.

It has a traditionalIt has a modern approach.

Approach
approach. (Sparrow, 2006)

Manpower treatment Human resources areHuman resources are

 treated as a tool. treated as an asset.

It includes an indirectIt includes a direct

Communication
communication. communication.

There is a fast process in

There is a slow process in
Decision making process human resource
personnel management.
management.

It consists of routineIt consists of strategic

Functions
functions.(Sekhri, 2010) function.

Causes of accidents in an organization

Technical causes: This is due to unsafe working conditions such as improper

lighting, poor machines guarding, poor house keeping, excessive noise,
inadequate working space.

Human causes: Due to unsafe act of individual e.g. recklessness, carelessness,

inability to perform the job, lack of training and ignorance.

Cost of Accidents to the organization

 Cost of damage to; machinery, equipment, tools and plant.

 Loss of employee’s morale and community reputation in the case of
serious accidents.
 Cost of supervisors and staff investigating, recording and
reporting the accidents.
 Loss of production cause by the accidents.
 Cost of training a new person to talked their injured employee’s
place.
 The cost of wages paid to the injured employees.

Ways of reducing accidents in the organization

  By doing proper accidents analysis- training.
 Enforcing safety rules at work.
 Ensuring safety education for all levels.
 Formulation of a safety policy that aims at making the place of work safe
in all aspects.

Purpose of keeping personnel in the organization

 For promotion
 For training
 For statistics
 Transfers
 Discplinary matters actions
 For up-to date records
 For reference
 For wage/Salary increments
 Protection of records is through.

Records of the personnel are stored in the following format –

i. index cards
ii. Folders
iii. Envelopes
iv. Diskettes
v. Magnet tapes

WORKERS COMPESATION ACT STATES

How the employers protect their employees at work

i. Providing safety equipment for the job and ensuring that it is used in
accordance with correct product.
ii. Ensuring that employees do not under take dangerous activities.
 iii. Checking if the procedure involved in jobs is safe.
iv. Providing a safe and health environment in which to work (including
adequate light, heat)
v. They carry out assessment of hazards and risks.
vi. They plan and monitor preventive measures.
vii. Ensure that employees have adequate information of the work they do.
viii. Provided with necessary training.

Factors that influence organization decision to improve staff welfare schemes.

 Finance of the firm

 The benefit of the schemes to the firm
 Size of the organization
 Interest and hobby of the employees.
 Skills of the organization
 Relationship among the workers.
 Really involved in the business. He referred to personnel
management as a collection of individual techniques without many
resources. Should be regarded as an organization asset, hues
depressingly what latter became the basic philosophy of HRM

2. MC GREGOR (1960) Theory x and y

He advocated management by integrating and self –control as strategy for

managing people which affect the whole business. He maintained that the key
role of personnel was to device means of getting management to examine its
assumptions to consider the consequences and to compare it with others. Like
Drucker MC Greg also pared ways to basic HRM concept that human resource
plans must be integrated with those of the business.

The behavioral science movement

This became into prominence in the 1960’s.

Its leading members were
a) Maslow (1954) whose hierarchy of human needs placed self actualization at
the top of the pyramid.
b) Liker (1966) who developed his integrations principle of supporting
relationships. This stated that organization members should in the light of
their values and expectations view their work as supportive and as combuting
to the building and maintain of their sense of personnel worth and importance.
c) Argyrols (1957) who believed that organization design should pla
n for integration and that they have high degree of self control over setting
their own goals and over the parts defining their goals.
Hertzberg (1957) who advocated job enrichment as a medium of improving
organization effectiveness.
The behavioural science movement contributed to HRM in the following ways:a)
It underlined the importance of integration and involvement.
b) It highlighted the idea that the management should accept as a basic valued
the need to increase the quality of working life as a means of obtaining better
motivation and improved results.

SIMILARITIES BETWEEN HRM AND PM

1. PM strategies like HRM strategies flow from the business strategy.

2. Pm like HRM recognizes that managers are responsible for managing
people. The personnel function provides the necessary advice and support
services to enable managers to carry out their responsibilities.
3. The values of PM and at least the management version of HRM are
identical with regard to “respect for the individual” balancing
organizational and individual needs and developing people to achieve their
maximum level of competence , both for their own satisfaction and
facilitate the achievement of organizational objectives.
4. Both PM and HRM recognize that one of the most essential process is that
of planking the right people in the right jobs thus ensuring that the
 organizations human resource are matched to ever changing organizational
requirements.
5. The same range of selection, appraisal, training techniques is used in
HRM attaches importance to the process of communication and participation
within and employee relations.

NEED FOR HRM

The following factors have ked to the creation and popularity of HRM
Increase in competition: improves in a quality and quantity of its products
and services to customers .

 An emphasis on quality of staff and product services.

 Flexible mode of operation.
 Willingness to adapt to changes.
 Need to inject flexibity into the roles of the employees.
 Mult- skilling- adopt a wide range of skills.

ROLES OF HUMAN RESOURCE MANAGER

The following are the key functions /roles of HRM
a) Employment
Planning for jobs, analysis, screen applicants, do replacements and firing of
employees terminates the employees. He is concerned with recruitment, selection
and placement.
b) Training
Develop training programs.
Assist of collection of training materials
Develop HR plans, policies matter of HR
c) Salaries and wages/compensation
Implement fair compensation.
Carry out job evaluation to establish relation worth of jobs.
Determine appropriate wage payable.
Motivate employees through compensation.
d) Employee and mgt Relation
Bargaining with employee’s union representative.
Harmonize labour relations.
e) Health and safety
Maintain all the fundamental health and safety conditions.
Identify the services and benefits prefers by employees.
Ensure a favorable working environment is provided.
 CHAPTER 3

MANPOWER PLANNING

It can be seen to make a comprehensive application of estimating the number of

persons and the kind of level of the knowledge, attitudes, skills and habits
needed for achieving require labour force i.e. Target.

Man power planning is an essentially concerned with the effective use of human
resources

It is integrally corporate and it is the collecting of link through which needs and
objectives are identified, utilized a met.

NEEDS FOR MAN POWER PLANNING

It has hard relatively low priority in the organization. Most organization are
planning which precepts however, now it is guanos some reorganization for
instance in Kenya

1. Return on investment.

Because in high investment in common resource within the organization e.g. The
ministry of Education total budget is 44b for teacher’s salaries and
approximately 34 billion for other hidden costs which as medical and housing

2. Individual needs satisfaction

Man power planning is done to provide jobs satisfaction to individuals as the

aim is to place the individual on the tight jobs that one is able to do
satisfactorily both to his capability and linking.
3. Adapting to change

Change is an occurrence we encounter in life both inside and outside of the

organization. It is fair to say that change has accelerated in the recent years as we
in social economic changes, labour supply. ADVANTAGES OF MANPOWER.

 Ensures that the right number of staff is recruited at each level in

hierarchy.
 Staffing requirement can be better balanced and movement of staff made
easier.
 Areas of high labour turnover are highlighted.

DISADVANTAGES

 It requires detailed information plus expenses clerical staff.

 Difficulty in forecasting changes especially technology and
government policies.

CHARACTERISTICS OF MANPOWER

Good man power should posses the following characteristics

1. Objectives of the plan.

There is need to establish the objective of the plan e.g. In the recruitment of
staff in an organization may need e.g. (X) level of education and Y of level of
experience.

2. Comprehensiveness of the plan

The plan should be complete and comprehensive i.e. It should consider all
the major determent, variables and groups of personnel in theorganisation for
example the staff should a number of senior, supervisor’s subordinates in
all the departments.
3. Feasibility study of the plan

The plan should be one that can be achieved through reasonable efforts i.e.
Not too variable which may partly or totally beyond the control of the
organization. There must be born in mind when setting the objectives of the
plan e

4. Flexibity of the plan.

The plan must be flexible to accommodate future incentives and changes

which may occur.

DEVELOPMENT OF MANPOWER (STAGES)

a) Forecasting manpower requirements.

This requires that the organization establishes its needs based on both specific
and general objectives. It is important to established human resource
requirement to achieve these needs. The manpower s needs should be stated
specifically in number and kind, quality: - their age range, educational
background, training technical and supervisory skills.

The determination of human needs is normally through.

 Decision with other mangers, supervisors and other staff.

 Directs observation and work s sampling.
 Examination of production and staffing records of previous years.

b) Establishing manpower Resources

There is need to carry out an inventory of the existing human resources in

the organization in terms of – Biography data, age, health etc.
 Personal data: - Aspiration and their personality educational and training –
both formal and informal general and specific.

Experience data: Precompany, incompany, length pf services, position held

exposure, appraisal records promo ability data: immediate potential, or non
salary data – Actual and the scale

c) Matching Resources with requirement

It is important to develop a programme to match with the projected

manpower requirement. This progrmme should be based on the compelled
statement and the number required a kind. However, allowance should be
made for the normal attrition (turnover) form retirement, resignation, death
and sis missal.

Allowances should be made also for the expected changes i.e. due to
expansion or decline . While planning for required personnel, various
breakdowns should be considered.

 Level – Executive, middle and subordinates.

 Types – Manufacturing, marketing and sells finance and
administrative personnel.
 Division
 Department or Sections

Whatever the breakdown was used, they used reflect the homogeneity of the
staff within the groups and also factors affecting the planning.

d) Formulating policies and programmes

This involves deciding how an organization will meet its planned manpower
requirement policy and programmes should be formulated regarding
recruitment , training and development, performance appraisal, staffing
utilization, staff compensation e.g.
In each the aim will be to satisfy him manpower requirements of the
organization at reasonable cost. The decision to be made will concern, hence the
content of human resource plan:

1. Recruitment: Who will have to be recruited, when, how and at what cost. Jobs
to be created changed or dropped.
2. Training & Development
Who should be trained me what, how, when and at what cost. Redeployment or
retaining extends.
3. Performance appraisal
When and how appraisals take place? Necessary supervisory change
4. Staff utilization
When will staff be retired and what transfer and promotion practices should be
followed.
Compensation
5. Compensation
What changes in wages, salaries, incentives and fringed benefit?
6. Redundancy on retirement programmes.
7. Industrial Relations implications.
8. Feedback from modification of the organizational objectives

ADVANTAGES OF HUMAN RESOURCE PLANING

 The organization is better equipped to cope with human resource

demand. The staff requirement can be balanced and movement staff made
easier.
 It enables the organization to discover or improved ways of managing
human resources.
 Organization through human resources plan can be able to avoid labour
short all or surplus, thus becoming cost effective/conscious.
 It is necessary condition to be used when developing employee training
and succession programme.
  Forecasting of future problems is possible and can be avoided through
effective human resource plan.
 It ensures that critical assessment of strength and weakness the labour
force and personal policies are taken seriously.
 Areas of high labour turnover are highlighted.

DISADVANTAGES OF HRP

 It is difficult to focus social, economic and technological changes.

 Financial constraint usually hinders the execution of the plan.
Defaulted records are needed plus expensive clerical staff.
 The emergency of new technology often than note renders the
implementation of the plan difficult or impossible.
 Many organizations employee usually resist change due to fear of
job security.
 Some employees oppose or become scepticl about the values of
human resources planning.

FORECASTING

Future demands of manpower are not to be focasted. The following reasons

provides an explanation

1. Technological has brought changes in materials, technical system and

sources of power.
2. Economic factor especially capital formation and marketing.
3. Social factors mainly the industrial legislation (wages and salaries,
monetary policies, training and redundancy.
4. Payment systems.

METHODS OF FORECASTING

1. Ratio trend forecasting

There existing manpower strength and work volume are analyzed and
detailed forecast are made of future work volume and probable change in the
methods future work volume are then related to passed ratios to give a
forecast.

2. Theoretical requirement Forecasting.

This involves accessing and defining the type and volume of activity needed to
attain the desired results

3. Zero –base forecasting

The method uses theorganisation accrued level of employment as the stating

point for deterring future employee needed. The needs for new employees may
arise due to Retirement, Resignation or other dismissal & separation. This is
automatic that once any of these situations occur the position will be filled.

Analysis should be done to determine whether there is any justification to fill the
positions. Essentially this method is concerned with justifying employment
decision.

4. Bottom –up approach

This approach forecast progress upwards the organization from small units or
aggregate forecast of manpower needs.

It maintains that to know human resource requirements, the manager or the

supervisor of each unit/section more knowledgeable of the requirement.

The approach requires that each level the organization should forecast for its
employment needs. Once this is done the requirements are passed on to the
personnel department for statistical analysis.
5. Predictor variables

This method uses passed employment needs as an indicator of manpower

requirements. It is commonly used in organization where there are involved
in marketing /distributive industries for example one predator of employment
is sells because there is a relationship between demand and the number of
employees needed

ADVANTAGES OF FORECASTING OF HRP

1. Assist the management with the means of estimating the number and
kind of employees it requires. The forecast should forecast on both supply
and demand for labour. It should determine the availability of qualified
personnel and sources where they will be obtained.
2. Management will be able to know all its employees in terms of skills and
aspirations especially in small organization.
3. It helps to identify employees with promotional potential.
4. Management can be able to identifying the employers with particular
skills anytime and meet the challenges of the organization.
5. It can also assist in identifying where employee can be located and
predict the types of employees who will succeed in the organization man
power planning is similar to human resource planning.

PURPOSE OF HRP &MANPOWER PLANNING

1. Recruit and retain qualified work force.

2. Optimized the employees talent, skills and abilities
3. Manage change through redeployment.
4. Fro training purpose i.e. It maps out the implications strategic decision
for subsequent HRM activities.
5. Human harmonizing plans and objectives of the organization.
 6. It is swat analysis too for the organization i.e. Provides and impute to the
organization is strategy by outlining the possibilities and cost of current and
potential workforce.

Human Resource supply

It is the next stage of human resource planning which involves evolution of

labour supply. This is done with reference to the amount of labour needed as a
result of having calculated demand for labour based on sales forecast and
forecasted production levels.

It has two parts

Internal supply and External supply

a) This refers to the number of employees already employed by the organization.

The following details should be known about the - age, grade, qualification,
experience and skills. These are important for succession plan, promotion
(career progression) and organization would reduced the internal supply of
labour due to reduced demand for the services of those current employment

Advantages of internal supply of labour

1. Regular employees are well placed to understand the way things are
done and how different parts of the organization fits together and to
appreciate the nature of that culture.
2. The people who carries our selection for vacant post have access to
more comprehensive information relating to the recruits abilities, truck
records and potential achievements.
3. Drawing from an internal supply of labour to fill vacancy where the
internal candidates receives a promotion ,sends a power signal than the
organization is committed to their advertisement and development.

Disadvantages of internal supply of labour

 1. Although there may be more information about internal candidates at the
disposal of the selector, it is not always free from bias.
2. There is a greater likelihood of more negative information about internal
candidate being available.
3. Internal candidates should be (stepped) side in the culture of the
organization e.g. if the culture is conservative, it would act as constraint
when innovative practices and initiative are required for the successful
candidates.
4. It results to lack of new ideas introduced.

External supply of labour

When the organization cannot draw form internal supply of labour when extra
candidate staff are needed it will need to recruit from the eternal labour markets.

The supply of labour can be tight i.e. This occurs when there are relatively few
external candidates with the necessary skills to do the job. On the other hand a
lose supply indicates when demand exceeds supply some companies may
engage in galumphing i.e. offering higher salaries to potential recruits than what
is offered by the competitor.

Advantages of External supply of labour

1. Greater target can be reached.

2. Transparency in selection is ensured.
3. Best candidates are likely tub e obtained.
4. A company can introduce fresh ideas with little resistance.

Disadvantages of external supply of labour.

1. It is time consuming e.g. advertising.

2. It is costly
3. Little information is known about external labour
Revision

a) Discuss purpose of human resource management &manpower planning

b) Explain methods of forecasting

CHAPTER 4

JOB EVALUATION AND GRADING

It is a systematic method of placing jobs in order of their relative worth so

that employees may be paid fairly.
It is concerned with the demand and conditions of the job and not with the
quality of the individually who occupied job.

It can also be defined as an attempted determined and compare the demands

the normal performance of a particular job makes on normal work without
taking account of the individuals abilities and the performance of the workers
concerned.

METHODS (TECHNIQUE) OF JOB EVALUATION

Ranking and grading.

QUALITITATIVE

Factor comparison and point rating.

1) Factor comparison (as a method)

It is an application of the person to person system of merit rating to job

evaluation.

There various attributes necessary for the performance of the jobs these are
compared for each job type.

Monetary values are directly assigned to each of the attributes (factor) as demand
by the job.

Jobs are ranked by one factor at a time and not the whole job. The factors usually
include mental and physical efforts, skills, education, experience, responsibility,
working condition e.t.c.

ii) Later move” Job Rotation”

Firms may sometimes move employees laterally e.g. Job rotation. Such lateral
moves can be variable learning experience building a more solid base for
subsequent promotion.

iii) Promotion

It is a change within the organization to a higher position with greater

responsibility and need for more advanced skills than in the previous positions.

Usually it involves greater status and increase in pay it is the most pleasant job
move.

It may be reward for outstanding performance or for greater utilization of the

individual skills and abilities.

For promotion is a move up, generally to a new title more responsibilities and
better benefits. However peter’s principles asserts that good workers are
continually promoted to position of great authority.Eventully they reach their
level of incompetence and will not be promoted again.

iv) Demotions

It is a movement downward, responsibilities and benefits. It race in an

organization

v) Terminating employees.

It is another painful reality especially in hard times as a results of technology

change merger altered strategies , fallen competition and other factors firms
must often engage in firing , such firing are some times referred as MIS for
management initiated supervisors.

JOB ANAYLSIS

Definition
It is the process of examining jobs in order to identify their features in
particular duties they fulfill, the results they are expected to achieve, the major
task undertaken and the jobs relations with other jobs. In the organizational
hierarchy.

Job analysis is the study of jobs within an organization so as to deterring the

activities employees perform, the tolls and equipment used.

It also look into the working conditions udder which theses activities are
performed and the minimum requirements one should have to adequately
perform a given job.

Benefits of Job Analysis

1. To line manager
2. To clarify the post to be filled by new recruits.
3. It produces job description which can provide essential evidence
for selection interviews.
4. It can provide the basic material on which performance assessment
can be based.
5. It is a prerequisite (conditions) for any analytical attempt at job
evaluation.
6. It can aide the review of organizational structures by clarify the
basic units of the organization.

To the individuals

1. They can be given a clear idea of their responsibilities.

2. They are provided with a basis for arguing for changes or
improvements in their jobs e.g. Job redesigned.
 3. They are provided with relevant information in respect of any
appraisal they may have.
4. They have an opportunity to participate in setting, their own short
term targets or objectives.

To the organization (Enterprises /business)

1. It is critical in improvement of staff morale.

2. Provide valuable data for organization and method structures.
3. It provides or gives a more equitable (fair) pay structure to be
established.

METHODS OF DOING JOB ANALYSIS

1. Interview with job holder

At times and for some jobs a good understanding of activities involved can be
obtained by talking to the job holders

Disadvantages

1. It develops suspicion form within the organization and may not tell
the truth.
2. Employee may exaggerate his job.
3. Employee may forget and emphasizes on UN important details.
4. Ambiguity of expression may result.
5. His attitude towards the work may influence his response.

2) To interview the supervisor

This involves interviewing the supervisor of the worker about the (KASH)
knowledge attitude, skills and habits.
 Disadvantages

i. Supervisor may be out of the task on the details of the job.

ii. His attitude may influence the opinion of he job.
iii. Exaggeration of the importance, duties and responsibilities
in order to show how important he is.

3) Questionnaires

It involves administering a structural questionnaire to the employee so that

one can identify the activities they perform in accomplishing their job. The
employees are usually asked to describe their experience, qualifications,
skills and attitudes necessary to perform their particular jobs.

The respondent is asked to describe in details the activities which applied to

the job, the importance of each activity in order of priority.

Disadvantages

i. It is highly unreliable
ii. The respondent may lack writing skills.
iii. The respondent may the duties and responsibilities of the
job.
iv. The language used may be a barrier.
v. Respondents may be suspicious and fail to respond.
vi. Questionnaires may not be answered all.

4. Do It Yourself (Direct Observation)

The job analyst spends time to do the task i.e. Does it yourself thus is also
known as direct observation.

DISADVANTAGES
 i. The results may be too subjective i.e. Analysis may be unqualified.
ii. Failure to give full details due to fear.
iii. A skilled worker may make job to appear technical

5) Work diaries

The job holder records the duties for each day or a period of time, the diaries
is then analyzed to obtained a list of duties and their frequencies.

Disadvantages

 The job holder may record what he does not do.

 They can be too broad or (detailed)
 If not kept properly may be unreliable

6) Sensitivity Training method

Used with small groups called I (for training group)

Involves brainstorming, thus attempt to develop participant’s sensitivity, self-

insight and awareness of group processes.

It is focusing in job and organization related issues rather than solely on

personal feelings.

7. Behaviour modeling /simulation

It involves supervisory trainees in dealing with actual employee problem and

gives immediate feedback on their performance. It brings about behoviour
changed through four steps.

 Viewing of films, videotapes, the model shows specifically how to deal

with situation.
 Participation on intensive practices and rehearsal of behavoiurs
demonstrated by the role model.
  After taking the role model, the trainees and the trainer provide social
reinforcers as praise approval e.g.
 Principle of transferring the training to the job is emphasized through
out tee training period

JOB DESCRIPTION
It is the next step after analyzing the job. It is a broad statement of purpose
details and the responsibilities of a job.
Uses
i. Helps to employ the staff suitable for some specific duties.
ii. Help to assign responsibilities to different employees.
iii. Shows the conditions under which the activities should be
performed
iv. Also give the standard and time required in performing the
activities about the impact of the decisions.

Job description format

1. Job title/designation
2. Location
3. Date of analysis
4. Number supervised
5. Immediate supervisor
6. Relationship with other job.
7. Overall purpose of the job
8. Main duties /responsibilities/ key tasks
9. Authority granted.
10. Resources available to the job holder.
11. Principal qualification required for the job e.g. personnel manager

JOB SPECIFICATION
It is a statement that set forth person requirement for individual qualification for
specific. It can be defined as detained statement s of the physical and mental
activities involved in job and when relevant of sound and physical
environment .

Alternately, it is a precise statement that spells the level and kind of education,
training or experience needed to perform.

Job specification is usually expressed in terms of behavour. It shows what the

worker does, what knowledge he uses in the job

JOB SPECIFICATON FORMAT

1. Job title- entrepreneurship development officers

2. Department – entrepreneur training department
3. Phsycal requirement - of reasonable standard.
4. Age - 30 -40 years
5. Educations requirement
6. Experience – 5years of continuous working
7. Intelligent - above average
8. Interest – Intellectual bias and creative tendency
9. Disposition – Friendly but firm

- ambitions
- Assertive
- Acceptable personality.

Purpose of the job specification

It is important to note that the preparation of a job specification is critical as a

step in the process prior to recruitment because

1. It tells us about pose (selection)

 2. It helps a bench mark not the desirable qualities and important
qualification below which the organization trust not to go ( standard of
performance)
3. Enhances the recruitment process particularly during short listing.
4. Used to get the quality required for training or promotion from
within.
5. Form the basis of promotion criteria
6. Job evaluation
7. Appraisal.

TRAINING METHODS

1. on the job training method

This is done on – Specific job e.g. Coaching experience

- Position rotation
- Apprenticeship

2. off the job training methods

It is done thorugh

 -conference

 Brain storming

 -Special course
 -Lectures
 -Management games
 -Role playing

Off the training

Training away from the work place.

Techniques used are

a) Class room method

Advantages
 Easy of operation (many trainers0
 Control of class
 Cost effective
 Exchange of ideas
 Short duration.
 Conformity of instruction.
Disadvantages
 Lack of individual attention
 Encourage the use of lecture method which is no the best.
 Does not allow for practical exposure.
 Acquit person may not learn much.
b) Programmed instruction method.
Subject matter is broken down into organized logical sequences.
Trainees are presented with segment of information.
Successful response is made with an explanation and with a try again responses.
c) Managerial Game method

Trainees are faced with a simulated situations e.g. As a business and re required
to make an ongoing series of decision e.g. Quantity to be purchased, pricing
techniques.

Feedback is given to the trainee make adjustments in their work pattern.

Finally performance appraisal is necessary a check on new policies and

programme example if a new pay system has been implemented it would be
useful to seek when it has had a positive effect on employment performance

POINT RATING
It is commonly used method. It involves a more quantities and analytical
approach to eat measure of job. The method of assigning job valves rather than
money values with determined.

In this method, jobs are broken down into their component with their
compensable job demand. Total points are determined to obtain the value of the
job. The point cluster/factor is usually.

1. Skills Education – experience- initiatives – integrity.

2. Efforts. Physical. – Mental or visual demands

3. Responsibility For equipment or process, material or product safety or the

welfare of others.

4. Job conditions

Working conditions, monotony, unavoidable hazards. The point assigned to

range each job demand indicates its relative as a job required in an organization

Steps

i. Select the job /characteristic

ii. Contraction the scale or yard stick of value.
iii. Evaluate all jobs in terms of their
iv. Conduct wage survey for collected key job
v. Design the wage structure.
vi. Adjust and operate the wage structure.

RANKING

The method is non- qualititative and non-analytical.

It should involve the preparation of brief job description, job description is
then placed in order or work without respect of persons present performing
their job or to e present wage rate paid

No specific factors are considered.

PROCEDURE/STEPS

1. Bench mark jobs identified and others jobs are compared and
ranked.
2. Bench mark jobs are drawn all level of the organization.
3. Each job to be evaluated is compared the bench mark job is
judged to determinate its relationship to the bench mark job to the
organization (A) As jobs increase, new jobs are compared with already
ranked jobs.
4. In large organization job families are used.

ADVANTAGES

1. It helps in determining a rational and suitable wage paying system.

2. More suitable for delegating relative strength to supervisors and
managerial jobs.

DISADVATAGES

1. There exists a problem in getting (incenses commonness) among accesses

when jobs are large.
2. It is difficult to choose a bench mark job.
3. It does not saw by how much a job or group of jobs is relatively higher
that another and therefore should be paid higher .
4. Its advantage of being simple in itself a defect in that the measurement is
crude.
5. It’s hard to measure whole jobs.
 6. No predetermined scale of value or yardsticks for judges to use.
7. It is difficult to explain to the job incumbent (a person employed)

USES OF JOB EVAUATION

1. To make pay administration easier by the number of separate grade pay.

2. To harmonize internal rate of pay to those found in other companies.
3. To provide a means by which a reasonable rate of pay can be fixed for
new or change jobs within the company.
4. To protect the employees from arbitration decision by management.
5. To justify wage differentiation and hence avoid frequent invocation of
grievance procedures.
6. To facilitates fair promotion systems based on determine job grading
rationally.

ADVANTAGES OF JOB EVALUATION

1. Provide systematic procedures, describing and placing a value on a job.

2. Job description can be used in recruitment and selection.
3. People are paid for work performed and the satisfaction desire can lead to
higher morale and better cooperation.
4. Union can play a part in deciding between levels of pay.
5. Helps in solving wage contracted.
6. Helps as a guide for giving promotions
7. Helps organization to reach a degree of standardization in wage levels.
8. Simplified the wage rate structure.
9. Helps in sectioning and centralizing the process of deterring wage and
salaries differential with staff analytic to assist it.
10. Helps in securing agreement among management officials. In the
organization and among union representatives in unionized firms planned on
the question of proper wage differential.
 11. Helps in developing procedures for systematic reviewing jobs rates as
job contents changes with technological and process improvement or as
variations occur amongst rate of particular jobs.

DISADVATAGES

No allowance is made for difference displaced in the performance of a job;

however, merit rating can be used.

Pay rates are also affected by market commodities i.e. Demand and
Supply.

Revision

1) Name advantages of job evaluation

2) Explain job specification format

CHAPTER 5

STAFFING

Recruitment

It is a deliberate and active seeking out of people who can fill the organization
job opening.

It is a process to identify potential workers with their appropriate knowledge

and skill, experience to fill up vacancies in the establishment or department.

The aim is to add new skills and competencies to inject new life into the
organization.
CHALLENGES OF HR MANAGER IN RECRUITMENT.

The educated workforce today is demanding and therefore a human resource

manager would face the following challenges.

1. Skilled labour who knows their right privileges challenging and

meaniful work.
2. Most workers need a greater say in decision making on aspect that
affect their work.

3. The government intervention through price registration/wages guidelines

also make it difficult for HR manager in planning for treatment.

4. Unions have more control of hiring and firing workers.

Recruitment also ca involves location and attracting potential employees to

apply for jobs in the organization.

The recruitment process

It involves

a. Receiving the cv and application letters

b. Short listing
c. Selection
d. Placement /Induction

Selections:

It is choosing from a sample the suitable candidates. This is done in

accordance to job specification and job description.

Selection is done because of individual differences.

 The following techniques are used to select candidate.

i. Interviews
ii. Psychological tests
iii. References
iv. Bio-geographical data (previous employment)
v. Work sample tests e.g psychomotor, group discussion job related
information.

The selection procedure begins with

Doing job analysis

Identifying selection instruments e.g. I.Qs. application forms, interviews.

Selection goes through the following stages

 Shift through application form and CV’s

 Short listing of candidates.
 Invitation of the short listed candidates.
 Interviewing of the short listed candidates.
 An offer is made to the candidates offer may include salary /wage,
terms of employment, and notice of termination.

Ways of selecting right candidates for the job

1. Application Blanks

These provide the hiring from which the information about education
background, work experience and other outside interest is obtained.

PROBLEMS WITH APPLICATION BLANKS

 The information provided by the applicant may not be relevant to

performance in the job.
  An applicant my give incorrect or misleading information in
application blanks or resumes.
 There are legal restrictions on to what can and cannot be asked on
an application form.

2. References

These are written by previous employee’s workers or acquaintances.

Problems

 Referees sometimes do not really know much about the person

requesting the reference.
 At times they are not frank because they don’t want to say
anything bad about a person.
 Unfaithfulness on the past of the referee.
 Convincing and bringing in incompetent employees.

3. Interviews

They are generally used and involve asking job candidates a series of questions.

Structured interviews have precise questions asked in an orderly and fixed

manner.

An unstructured interview there is loses interchanges between the interviewer

and the job candidates.

DISADVANTAGES OF USING INTERVIEWS

  It is not a reliable and a valid means of selection
 Interviewer may interpret information differently.
 Interviewers do not ask right/relevant questions.
 There is subjective judgment influenced by personal appearance.
 Predetermined opinion of the interviewer before they have necessary
information to make a fair judgment.

ADVANTAGES

However interviews are popular because

i. They are easier to ask a series of questions than to develop a test

such as ability testing.
ii. Makes the selection process more personal and gives the interview
an overall idea whether the applicant is right for the job.
Unfortunately, it seems that these organizing aspects and other
problems largely undermined much of the potential vale of interviews.

NB

To improve on the overall standing of interviewers the following

solutions should be implemented.

i. Set in training programmes where interviewers would receive prior

training.
ii. Appropriately circulate the job description, job specification,
completed application forms to give to the interviewers in advance.
iii. The venue should be suitable and the furniture appropriately
arranged.
iv. Allocate reasonable time and each interview should receive the
same time allocation.
v. Where appropriate, open ended, job related should be asked of
interviewers.
 vi. After formal questioning the interviewer should be given
opportunity to ask questions and be free to make observations.
vii. Use a panel rather than one to one interviewer to reduce
individual interviewer’s bias.

TESTING

It is a relatively objective way to determine how well a person may do on the

job. Many human resource experts and personnel managers believe that testing
in the single test selection tool. Test yield more information about a person that
does a complete application blank and they have less bias than do interviews.

TYPES OF TESTS
a) Ability test
Measures whether the applicant is able to perform the task required in the job
meaniful ability tests assesses memory , problem solving speed viable
comprehension , ability to deal with numbers e.t.c. mechanical ability test
measures two partial relationship i.e. ability to see how parts fit together
into a whole.
b) Personality test
Measures the strength or weaknesses or personality characteristic that might be
important on the job.
c) Interest
Measures a person likes or dislikes for various activities.
d) Work sample test
Measures how well applicant s performs on selected tasks. That the test may
include typing speed for typist or judgment tasks for police officers.
5. Assessment Centre
Instead of just using interviews or tests, many large companies approach the
employees selected more systematically. They use a variety of produces
combined in the form of an assessment centre.
These centres have psychologists and other experience on human behaviour as
well as test, interviewer group discussion and other approaches

Often managers within a firm or company assessors

INTERNAL SOURCE OF RECRUITMENT

Advantages

 Provide motivation to employees.

 Retaining of employees already known.
 Provide challenge to employee to perform to expectation.
 Provide opportunity for continuity (easier progress)
 Enabling tapping of talent potential skills of junior employees.
 Cheaper
 It’s reliable

Disadvantages

1. No new ideas.
2. There is a possibility of jealous leading to de-motivation.
3. Better qualified employees are not recruited.

EXTERNAL SOURCES OF RECRUITMENT

Advantages

a) New ideas can be obtained

b) Greater target can be reached.
c) Transparency is ensured.
d) Best candidate are likely to be recruited.
e) Changes are possibly introduced.
Disadvantages

 It’s costly
 Time consuming
 Coordination becomes hard.

PLACEMENT

It is a means of filing people and job together. It includes everything

form helping new employees feel at home in their firm, to promote them into
position of greater pay and responsibilities to demoting them to less desirable
position where necessary.

It involves three activities:

Orientation/Induction

Involves introducing new employees to their jobs and company. It is the

employees first inside look at the company if properly done, job

Revision

a) Discuss types of tests

b) Explain challenges faced by hr manager in recruitment

CHAPTER 6

COMPENSATION AND MOTIVATION

Principles purpose of payment policy in an organization

 - To attract sufficient and suitable employees.

- To retain employees who are satisfactory.

-To reward employees for effort, loyalty and experience

Reasons for compensation employees

Reasons for paying employees

i. To fulfill legal obligation

ii. To obtain a sufficient share of relevant labour market (qualified
employees)
iii. To ensure a high level of quality output.
iv. To provide fair reward to those performing suitable roles.
v. To provide incentive for employees- for motivational
vi. To encourage optimum productivity form employees
vii. To recognize the value of jobs in relation to each other.

What is the major influence of pay (factors?)

i. Ability to pay by the organization

ii. Bargaining strength of trade unions
iii. Comparability e.g checking on rates being paid in other firms.
iv. Labour market conditions e.g. it is affected by the economic
situation of the country
v. Cost of living
vi. Government action e.g. the minimum wage levels given by the
government
vii. Productivity e.g good selling market.
viii. Existing differentials/customs and practice e.g. some have
introduced some customs such as fringed benefits.
ix. Organizational & technological change.
Types of Wage payment system

 Time rate system

 Payment by results system
 Company wide incentive scheme where pay is linked to overall
performance e.g. paid bonus.
 Single status schemes where manual workers are paid as salaried
employees.

Time rate system

Advantages

i. The management is in control of production

ii. Employees receive predictable earnings as enhanced stage.
iii. It is simple to operate.
iv. Labour costs can be readily controlled.
v. It encourages collaboration rather than competitions between
employees.
vi. They encourage labour flexibility

“Compensation based performance”

Pay by results system

Advantages

i. High level of output is achieved.

ii. It may lead to employees motivation thus putting extra effort
and be rewarded within the day

Disadvantages of pay by Results

i. The quality produced may be of a low standard.

 ii. The rate fixed to the item is often subject to argument.
iii. Hardworking employee may suffer at a expenses of his fellow lazy
workers.

Company Wide scheme.

It is where bonus is paid to all employees on the basis of productivity achieved

within the business as a whole.

Single status schemed (paid at the month end e.g. salary)

It gives clear differences of treatment of a manual worker and white collar staff.

Advantages

i. The organization saves administration costs.

ii. It improves the borrowing position of the manual workers
through annual salary.
iii. It helps to improve industrial relations.
iv. Manual workers receive benefits than previously
v. Pay administration becomes simpler.

Disadvantages of single status scheme

 Manual workers are to wait for a month before they are paid.
 It leads to increase of labour costs as a result of improvements to
manual workers conditions.
 There is less scope for management.

Types of salary systems.

a) Merit scale (due to skill, education)

b) Incremental scales
Merit scales

It is based on range from EX to EY

Advantage of merit scales

i. It focuses on the individual performance rather than length of

service.
ii. It provides scope for rewarding extra effort for results.
iii. It enables salaries to be adjusted more flexibility than
incremental rates

Disadvantages of merit rating

i. It requires an appraisal system

ii. It may not always seen equitable to staff.
iii. Employees don’t know in advance how much will receive for me

Incremental scales

This are salary ranges having a number of pay points or steps which every job
holder must alight on as she /he progresses through the salary range .

Advantage of incremental system

i. It is simple to operate.
ii. It is clearly understood by the staff.
iii. No appraisal system is required.
iv. The staff can reliably focus on their salary group.

Disadvantages

i. It is flexible.
 ii. It tends to mediocre performance rather than high performance.

Employee benefits includes

 Security benefits e.g. Pension schemes, life insurance, loans for his house
purchase
 Work related benefits e.g. Car loans, special training opportunities
 Status related benefits e.g. Prestige cars, attainment allowance, payment
of telephone and children education scheme.

Changes in the organization referred to as positive and responsibility change.

These includes
 Promotion
 Transfer
 Demotion
 Dismissal
 Retirement
Causes of dismissal are:-
 Misconduct
 Inadequate performance
 Criminal activity
Record of repeated violation of established rules and regulations.
 Labour turnover costs to the organization are
 Cost of recruitment and selection
 Cost of training and development
 Cost of interruption of ongoing group work.
 Cost of processing new employees payroll.
 Payment of terminal benefits.
 Possible demoralization of the remaining measures.

Causes of labour turnover in the organization

 i. Poor working conditions.
ii. Undesirable jobs
iii. Poor job analysis
iv. Pay inequities
v. Dismissal of employees
vi. Limited opportunities for advancement.
vii. Limited tolerance for frustrations
viii. Lack of commitment and uncertainty as to what one wants to do.

How to minimize labour turnover

i. By better clarification of job expectations to the worker

ii. By improving concerned about employee’s welfare.
iii. Better recruitment selection & placement of employees
iv. When analyzing turnover rates, distinguish between high
performance and low performance.
v. Ensure that expected rewards by employees are closely tied to
desired behavior.
vi. Recognize the importance of job attitudes, both job satisfaction and
dissatisfaction and organizational commitment since these attitudes
can influence subsequent job performance and intent to leave.
vii. Clear job analysis both job descriptions and job specifications

Ways of improving performance Appraisal of workers.

i. By better job description and specification thus employees

awareness of what is expected in the job.
ii. By encouraging individual employee’s appraisal than groups as
people are not the same.
iii. Use of qualifies rater.
iv. By using a well understood method of appraisal such as grading.
v. By knowing full the character and behavior of employees at work.
Factors to consider when drawing wages and salary scale for employees in the
organization

 Wage and salary policy should be carefully developed

bearing in mind the interests of management, employees and
society.
 Decisions should be made and checked against formulated
policies.
 Employees should be made to understand the wage and
salary policy.

Wage – is the payment made to manual workers in addition to the basic rate the
workers will often receive other payments, the most common examples of which
are as follows.

 Overtime pay
 Shift pay
 Special additions
 Cost of living allowances
 Policy allowances
 Payment by results bonus

Revision

a) State Ways in which a company can administer its salary

b) Discuss Ways of improving performance Appraisal of workers

CHAPTER 7
 INDUSTRIAL RELATIONS

It is the rule, practices and conventions governing interactions between mgt and
their workforces normally involving collective employee’s representation and
bargaining.

TRADE UNIONS

It is an association of workers formed to protect their interests in employment

situations.

Objectives of Trade Unions

 To seek better wages and working conditions for their members.

 Greater job security
 Improved welfare benefits.
 To have more employee participation in management.
 It is to be a democratic organization

Reasons for joining trade unions

 To improve their working conditions

 To gain some control over working environment.
 Due to pressure from present union members and him feels isolated.
 What are the effects of unions on Management
 Decision and policies are subject to challenge and negotiation.
 Mgt powers are limited and they may be used more cautiously.
 Decision making may become centralized so that a unified company
industrial relations policy can be formulated and practiced.
 The management may be required to give certain information about the
company to union representatives.

TRADE UNION CONGRESS

It is association of over 100 unions. Its policy is decided by its constituent unions
at the annual congress. Its power is limited over its member Trades Union
Congress functions:

 To agree and express a policy for the trade union movement.

 To be consulted by the government
 To deal with inter-union disputes
 To promote legislation to protect and benefit its members.
 Employers associations
 It is formed by the employers to negotiate on industrial relations
matters for the industry.
 For trade and information purposes.

Types of trade Unions

 Trades unions congress

 Employers associations
 Staff associations
 Collective bargaining

Staff Association

It is an association of workers selected in an organization as representatives at all

the departmental levels.

TRADE UNIONS LIMITATIONS

 Trade union leaders are not sincere i.e they try to see these union
for their own purposes.
 The bargaining power of laborers is weak as compared to
employers.
 At some times the laborers are not united.
INDUSTRIAL RELATION

The relationship that exists between the employer and the employees is called
industrial Relations or labour relations.

The scope of industrial relation s covers the three areas namely:

- Relationship between employers & employers.

- A collective Relationship between employers and labour
unions (trade unions).
- The role of the government in reputation of the two above.

A good employee – Employer Relationship prevents the chance of strike, work

stoppage, boycotts.

Conditions required establishing and maintaining a good employee and

employer relationship. (Necessary)

1. Workers willingness to deliver the services.

2. Recognition of the ;workers by their employer that they are part
of the team working towards common goals .
3. Fair attitudes towards redressing workers grievances.
4. Fair attitudes of supervisors toward workers rights.
5. Refusal by both workers and trade union leaders no to be
influenced by political leaders to hold a strike.
6. Payment of fair wages, salaries and adequate working conditions.
7. Offering some training in labour and human relations skills to
workers.
8. Establishing adequate communication channel between the
workers and employers in order to keep workers informed about
decisions that affect their work and interest.
9. Establishing atmosphere of participation though joint committee’s
consultation.
 10. Introduction of a suitable system of work at all.

Factors contributing to poor employee- employer Relationship

 Workers are indiscipline.

 Unhealthy working conditions.
 Mgt not being tolerant towards workers.
 Inadequate payment structure.
 Lack of human Relations skills form the mgt e.g. Manager or supervisor.
 Employer’s failure to; meet the desire of the workers.
 Dismissal which are unfair and strikes or boycotts of works on the part of
workers.
 Introduction of technological changes without prior preparation.
 Due to general economic or political environment such as rising prices,
strikes by workers.

Causes of Grievances in organization

 Due to communication breakdown

 Hostile management
 Disagreement over wages and fringed benefits
 Clashes over personalities.
 Clashes over values
 Workers distrust over authority
 External forces like rapid changes in technology
 Misunderstanding
 When classes of labour contract are understood differently by
workers and mgt.

Signs of potential Grievances (Disputes)

  Poor job performance
 Increased cases of absenteeism
 Unwillingness to co-operate
 Decreased interest in work
 Slowing down in the job
 Negative statement about the job
 Increased rate of accident.
 Low productivity
 Poor quality work.

How to minimize Grievances

 Treating workers as individual and with dignity

 Recognizing good performance, identifying them and
rewarding them.
 Training workers how to perform their jobs.
 Seeing the issue from the workers point of view.
 Knowing of the labour contract and applying it.
 Being objective, fair and consistent in disciplinary
actions.

Revision

a) Name Causes of Grievances in organization

b) Discuss factors contributing to poor employee- employer Relationshi