HUMAN RESOURCE MANAGEMENT: An integrative approach

BENJAMIN MWANZIA MULILI

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DEDICATION

To My wife Emily Ndinda And my children Stephen Ndua Judah Kiilu & Esther Ndanu

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ACKNOWLEDGEMENTS
The process of writing this book was an uphill task. However, several parties assisted me in different ways. It is therefore my great pleasure to acknowledge their assistance. Nevertheless time and space do not allow me to mention all of them. First and foremost, I thank God for His blessings towards my life. The fear of the Lord has been the source of my strength, knowledge, motivation, and the hope for achieving my goals. Secondly, I wish to acknowledge the Catholic University of Eastern Africa for being a caring employer and for providing me with the opportunities to excel in my career. Numerous individuals participated in the process of reviewing this book. I wish to thank the many students of Catholic University of Eastern Africa who provided useful suggestions and examples. Specifically, I would like to acknowledge the contributions of the following MBA students. Christine Mulili, Felistus Chepchirchir, Teresa Kariuki, Wekesa Isabella, Mark Karobia, Benard Gitangi, Mumbua Kioko-Ngalukya and Peter Kamau However, any mistakes in this first edition are entirely my own and blame cannot be projected to any other person. My family members, especially my dear wife Emilly Ndinda, were there for me all the time. Thank you for being unconditionally supportive to me. To other parties that assisted me in one way or another, thank you so much and God Bless!

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TABLE OF CONTENTS
Dedication……………………………………………………………………….. Acknowledgements………………………………………………………………. UNIT 1: Ch. 1. Ch. 2. Ch. 3. Ch. 4. Ch. 5. UNIT 2: Ch. 6: Ch. 7: Ch.8; UNIT 3: Ch. 9: Ch. 10: Ch. 11: UNIT 4: Ch. 12: Ch. 13: UNIT 5: Ch. 14: Ch. 15; Ch. 16: UNIT 6: Ch. 17: Ch. 18 Ch. 19 UNIT 7: CH. 18: Ch. 19 UNIT 8: Ch. 19: Ch. 20: Ch. 21: NATURE AND SCOPE OF HUMAN RESOURCES MANAGEMENT. Role and functions of human resources management………….1 Challenges of modern human resource management…………. Creation and management of a HR unit………………………….. Human resource policies……………………………………………. Human resource information systems……………………………. PROCUREMENT Fair employment practices………………………………………… Human resource planning………………………………………….. Recruitment and selection…………………………………………. EMPLOYEE TRAINING AND MANAGEMENT DEVELOPMENT Employee training……………………………………………….. Management development……………………………………. Career Development………………………………………….. COMPENSATION ADMINISTRATION Job evaluation techniques……………………………………. Compensation of employees and managers………………. INTEGRATION Directing employees………………………………………… Management of conflicts…………………………………….. Labour relations………………………………………………. MAINTENANCE Employee health and safety………………………………. Human resource productivity……………………………. Performance appraisal…………………………………… SEPERATION Employee separation……………………………………… Employee counselling……………………………………. HR RESEARCH, DEVELOPMENTS AND THE FUTURE Emerging issues in human resource management….. Global human resource operations…………………… Organisational development and change--------

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2003). raw materials. can perform efficiently and effectively towards the 5 . machinery. Management is the planning. it is necessary to have a good understanding of the field of management. An organization’s resources include assets such as people and their skills and knowledge. organizing.  The shift from personnel management to human resource management. and financial capital (Jones & George. which have received wide acceptance in academic and professional circles. Some of the definitions. Therefore. INTRODUCTION The discipline of human resources management is a part of the broader field of management. 2003). Peter Drucker (1955).  Functions of human resource managers. a widely read writer on general management says that “management is the organ of society specifically charged with making resources productive”. working together in groups. leading. and controlling of human and other resources to achieve organizational goals effectively and efficiently.CHAPTER ONE: NATURE & SCOPE OF HUMAN RESOURCES MANAGEMENT Chapter objectives This chapter introduces learners to the:  Definitions of management and human resource management. Harrold Koontz & O’Donnel (1984) define management as the creation and maintenance of an internal environment in an enterprise where individuals. computers and information technology. include the following. Management is a branch of social sciences that deals with establishing and achieving various objectives (Kaila.  Differences between personnel management and human resource management.  Importance of human resource management. for one to fully understand and appreciate the study of human resources management. DEFINITION OF TERMS Management There is no universally accepted definition of management hence different authors and practitioners have put forward different definitions. Many of the definitions emphasise one or a few aspects of the discipline.

and controlling of the procurement. the management of human resources means that they must be recruited. one would define human resource management as an activity that deals with getting people. preparing them.depends heavily on its ability to attract and keep good people. development. Human Resources Management According to Mathis and Jackson (2000) Human Resources Management deals with the design of formal systems in an organization to ensure the effective and efficient use of human talent to accomplish organizational goals. and societal objectives are accomplished. Indeed every organisation is made up of people. compensated. and therefore acquiring their services. integration. The weakness of this definition is that it does not realise that the same people who get into an organisation will need to leave it in one way or another.whether it is the government or it is involved in business. recreation or social action. developing their skills. compensation. This definition emphasises the functions performed by human resource managers. Those organisations that are ineffective or inefficient risk the hazards of either stagnating or going out of business. directing. motivating them to high levels of performance. staffing. Flippo B. Any definition of management must include three common factors namely goals. and separation of human resources to the end that individual. education. trained. and keeping them. 6 . Human resource management is concerned with the "people" dimension of management. The existence of so many different definitions of management implies that the field of management is too pervasive for any one definition to suffice. stimulate. organisational. organising.E. health. and people Thus management is the process of achieving organisational goals using limited resources and by working with and through people. limited resources. and ensuring that they continue to maintain their commitment to the organisation are essential elements for achieving organisational objectives. directing and leading and controlling. Organisations that are able to acquire. In an organization. and keep outstanding workers will be both effective (able to achieve their goals) and efficient (using the least amount of resources necessary). activating them. maintenance. and how well. The success of any organisation. Every manager or team leader is concerned with the way in which people are employed as well as with what they need to be doing.attainment of group goals. and developed. develop. He defines Personnel management as the planning. (1976) uses the term Human Resources Management synonymously with Personnel Management. In less academic terms. organizing. The five essential managerial functions are planning.

organisational members would not know how to utilise their time and energies effectively. planning is a tool for identifying these goals and finding ways to achieve them.determined goals. Planning is important because it provides employees with a sense of direction. Without this information. The process of establishing goals for the entire organisation should include the active and enlightened participation of the human resource manager with his/her expertise in the area of human resources. shows the kinds of tasks they will be performing and explains how their activities are related to the overall goals of the organisation. Compensation.  How to measure the results. Directing and Controlling 2. directing and controlling. Maintenance. It also becomes the basis for monitoring and evaluating actual performance. Organising. It is like taking a walk into the future and deciding. Managers develop short term. Integration. Planning is also a pre-requisite for the other managerial functions of organising. medium term. An illustration is as below: What will be done: Introduction of a new product When this will be done: By December 2007 Who will do it: Research & Development Department How: Through continuous Research How to measure Results: By evaluating whether the product will have been introduced by December 2007 The need for planning derives from the fact that organisations are goal-seeking entities.  what will be done. namely: 1. and long term plans at the various levels of management. Development. It allows managers to co-ordinate the activities of their employees towards pre. These are Procurement. Effective managers spend a substantial portion of their time planning. The human resource manager should 7 .FUNCTIONS OF HUMAN RESOURCES MANAGERS Human Resources Managers perform two (2) major functions. Specific Human Resource Management functions. and Separation 1.  when it will done.  how it will be done. GENERAL MANAGEMENT FUNCTIONS A) PLANNING Planning is the process of formulating future courses of action. General Management functions which include Planning.  who will do it.

and General administration department among others. managers should organise their people and other resources in some logical manner so as to carry out the plans. This applies to the heads of finance. Marketing department. engineering and so on. marketing. Production department.translate the strategic plans of the organisation into the number of people needed to accomplish them. Different people are motivated by different things such as:  Money  Job security  Good working conditions  Appropriate supervision  Friendly co-workers  Recognition  An interesting job  Growth opportunities 8 . Whenever functional heads participate in the strategic planning process.  Assigning people to various groups  Defining working relationship among various groups. Organisational activities are often divided into various groups/ departments and people with specialised knowledge and interest are assigned these tasks. Formal and informal relationships among group members are specified to facilitate effective communication and working relationships. C) DIRECTING Most managers spent a great deal of their time directing the efforts of organisational members. B) ORGANISING Once workable plans are developed. Motivation involves finding the incentives that satisfy the needs of employees. Organising involves: Acquiring the necessary resources  Dividing organisational activities into groups /departments such as the Purchasing department. organisations lead people to carry out the activities needed to achieve their goals. Human Resource department. These functions includes: Motivation  Leadership  Communication  Co-ordination MOTIVATION Motivating employees is an important task for managers because they rely on employees to get the work done. Accounting department. they should translate the plans in relation to the requirements from their departments. People join and work in organisations to satisfy their needs.

LEADERSHIP Leadership means the ability to influence the behaviour of other people in a certain direction. Human resource auditing is an evaluation of the Human Resource activities to find out if they are in line with the objectives of the organisation. To be effective the standards must be attainable and specific. Rewarding excellent performance or taking corrective action such as lowering the profit expectations and training the workers. profits achieved for the year 2007 are $15m 3) Comparing actual performance with goals or standards e. profits of $20m to be achieved in the year 2007 2) Measuring Actual performance e. Acquisition deals specifically with subjects such as strategic human resource planning. short-listing 9 . 2.g. and personal charisma or by other means. Performance standards are the yardsticks (measuring units) against which actual performance is measured. Planned performance $ 20m Actual performance $ 15m Variance/ Deviation $ 5m 4. communicating with potential candidates. SPECIFIC HUMAN RESOURCE MANAGEMENT FUNCTIONS i. inviting and receiving job applications. managers should learn to communicate effectively. D) CONTROL FUNCTION This is the final stage of the managerial process and involves ensuring organisational activities are carried out as planned. Managers need this ability to get employees to accomplish organisational tasks.g.g. Often managers acquire leadership skills through expert knowledge. Actual performance is then compared to standards to see if the work has been done successfully. Since communication is so purposive. determining sources of recruitment. COMMUNICATION Communication is the transmission of information from and to all levels of the organisation. Since most organisational activities are divided and performed by different individuals or groups. respect. PROCUREMENT/ACQUISITION This is concerned with obtaining the proper quality and quantity of employees that are necessary to accomplish an organisation's goals. they need to be co-ordinated by managers at different levels to achieve the goals in a concerted manner. There are 4 steps in controlling namely: 1) Establishing performance goals or standards e. CO-ORDINATION Co-ordination is the process by which the activities of the organisational members are integrated to achieve organisational goals most sufficiently. reviewing application forms.

Training has to do with the increase of skills and it is necessary for proper job performance. employees and the management. COMPENSATION Employees exchange their work for rewards and money is probably the most important reward. 10 . race. it is necessary to establish the duties to be done so as to meet organisational objectives. selection through interviews. Procurement must not violate laws such as Affirmative Action and Equal Employment Opportunity Act that seek to offer equal employment chances to all people irrespective of gender. giving job offers or letters of regret. or even between the organisation and other organisations. It is one of the most important functions of the human resource manager. the realignment of jobs. Compensation administration is concerned with the adequate and equitable remuneration of employees for their contributions to organisational objectives. work groups. In this case. disciplinary action. Conflicts often arise between employees. iv. conducting pre employment tests. and inducting and placing selected employees. iii. diagnostic and human abilities. ii. and the increasing complexity of the managerial tasks. The importance of this activity will continue to grow because of changes in technology. is also an important area of training and development. Thus the training of employees is extremely important to every pragmatic organisation. checking referees. INTEGRATION The need for integration arises from the realisation that employees have many differences among themselves and which may affect their work performance. In order to determine the human resource requirements of an organisation. Development concerns itself primarily with knowledge acquisition and the enhancement of executives’ conceptual. tribe. Career development.the candidates for interviews. While training emphasises skill development and the changing of attitudes among workers. and so on. and labour unions. the human resource manger would deal with issues such grievances. DEVELOPMENT Many managers have realised that employees do not learn new skills through trial and error or simply by watching other employees. The essence of integration is to attempt to effect a reasonable reconciliation of the conflicting interests. development is directed to the managers of the organisation. The establishment of duties becomes a basis for the recruitment. which is the continual effort to match long-term individual and organisational needs.

Performance Management Performance contracts. SEPARATION Separation involves returning the employees to the society from which they came and ensuring that the returned employees are in as good shape as possible. retrenchment. In some cases employees die while they are still in active employment. Compensation and benefits Wages/ salary administration. summary dismissal. handling terminal sickness like AIDS and Cancer. induction. balanced score card and performance appraisal. employee rights and relations privacy. employee assistance programs. redundancy. performance management. security. led by social responsibility principles. handling death of employees 11 . safety. counselling. Separation Voluntary retirement. Diversity. The table below summarises the major functions involved in human resources management. leadership and communication. transfers. job analysis. promotions. safety. Staffing Recruiting. The organisation. benefits. vi. and security Health and wellness. Table 1: Major functions of HRM Major function Activities involved HR planning & analysis HR planning. career planning. Separation may take the form of retirement. HR Information and assessment systems Equal Employment Opportunity Compliance. the organisation. incentives. union-management relations. Health. and discharge. Affirmative Action.v. Employee and labour/management HR policies. HR Development Employee training. should assist the family of the affected person in a variety of ways. management development. Directing Motivation. diversity programs. MAINTENANCE The aim of maintenance is to ensure that employees are happy with their jobs. Through maintenance one will be able to perpetuate a willing and able workforce. outplacement. good physical condition of the employees. selection. and health and safety of the workers. lay offs. relationships with colleagues and so on. The maintenance of willingness is heavily affected by communication with employees.

Further. workers were becoming more demanding in terms of what they wanted from a job. As the field of management began to mature. Various studies have revealed that by recognising workers for the work they had done could influence their productivity (see Hawthorne studies . religion. and retirement parties. A number of events mandated changes in personnel practices e. must be a specification of those objectives and a determination of the sub-objectives of the personnel function. the rise of a modern labour union. more emphasis was being placed on the workers. Organisations had to hire the best-qualified candidate without regard to race. the personnel department could not be treated as a by the way on the road to success. sex etc. as of all management. and the insistent and sometimes violent demands of less privileged segments of our society. were seen as a necessary. as an activity. and society by means of law and legislation was placing new demands on employers. the starting point of personnel management. but unimportant part of the organisation. The personnel department was seen as a place where lessproductive employees could be placed with minimal damage to the organisations on going operations.          Hiring the wrong person for the job The organization having a high labour turnover People not doing their best Managers wasting time with useless interviews Having the company taken to court because of discriminatory actions Having some of the employees think their salaries are unfair and inequitable relative to others in the organisation The lack of training that may undermine a department’s effectiveness Committing any unfair labour practices Treating employees unfairly because of their cultural orientations THE SHIFT FROM PERSONNEL TO HUMAN RESOURCE MANAGEMENT Personnel departments were once called "Health and Happiness” departments. IMPORTANCE OF PERSONNEL/ HUMAN RESOURCE MANAGEMENT TO ALL MANAGERS It helps managers not to commit the following personnel mistakes i.e.in the Human Relations movement). The people assigned to deal with personnel issues were often individuals who were past their prime. Personnel. vacation schedules. colour. the increasing size and complexity of the organisation and its technology.The purpose of the activities outlined above. Consequently. Individuals in the personnel department were perceived as those responsible for planning company picnics.g. the increasing educational level of societal members. both managerial and operative is to assist in the accomplishment of basic objectives. Due to these changes. 12 .

This forced business markets to carry out intensive cost cutting measures. Fig. unemployment laws began to reflect the new economic priorities.The figure below shows how the role of the personnel manager has changed over the years. the emphasis moved away from welfare to recruitment and human resource planning since all organisations faced intense competition for labour. It was a time for personnel managers to show their loyalty to the enterprise by fighting off what employers regarded as excessive claims for improved terms and conditions of employment. especially labour. Moreover. backed by a flood of labour legislation called for industrial relations and legal skills. consequently the protective framework of legislation for trade unions and their members was 13 . 1: The Changing Roles in Personnel Management (1930-1996) Welfare Officer (1930’s) Recruitment Specialist (1950’s) Industrial Relations Negotiator (1970’s) Human Resources Supplier (1980’s) Visionary/ Corporate Philosopher (1990’s) All round business manager (2000’s) Time has moved the Personnel Manager from a Welfare Officer in the 1930s to a Visionary/ Corporate Philosopher in the 1990s. A weakening of the general economic conditions and unemployment in labour markets all over the world marked the 1980s. In the years of expanding economic activity in the 1950s and 1960s. In the 1960s and 1970s the problems of increasing trade union power.

and seeking to modify managements actions that could produce an unfavourable response” (Storey. 1985) 14 . Human Resource Management is concerned with the entire life of the employees at work. satisfying their needs. and responses (Guest. In some cases. justifying managements actions. and management of an organisation’s human resources. motivation. In the new millennium the human resource manager is expected to be an all round manager able to handle all kinds of business problems. In the 1990's the Personnel Manager assumed both the functions of supplying personnel services and being a Visionary/ Corporate Philosopher for the organisation. is directed not just to the needs of the employees but emphasis is placed on the planning. It enables goals and values of the individual and those of the organization to be integrated and achieved (Handy 1985). which is characterised by a less dynamic and Short. personnel management identifies more with the employees than with the management. monitoring and commitment than problem solving and mediation (Torrington 1995). The above definition shows that personnel management occupies a middle position between management and employees. dealing with their problems. The major areas of differences are as below:  Personnel Management is about administration and procedures while Human Resource Management is about a strategic approach to the acquisition. 1987). Human resource managers often adopt advisory roles as opposed to purely functional and implementation roles.  Human resource management adopts the executive roles and transfers the personnel management aspects to the level of line management. Personnel Management has thus evolved to become human resource management. explaining managements expectations. interests. and thus freeing business organisation’s to make substantial changes to their workforce in the light of business priorities. from entry to exit.term view of the organisation and its needs.drastically reduced. Armstrong (1998) argues that Human Resource Management adopts a more strategic and far-reaching approach as opposed to the Personnel Management. DIFFERENCES BETWEEN HUMAN PERSONNEL MANAGEMENT RESOURCE MANAGEMENT AND Personnel management can be defined as activities “directed at the organisation’s employees and finding and training them. arranging for them to be paid. Human resource management. on the other hand. Personnel management places a high priority on employees’ attitudes. 1992:6).  Personnel management is pre-occupied with the day to day running of the organisation while human resource management adopts an advisory role and attempts to ensure that the organisation’s activities are closely linked with its corporate strategy and that they fit into the culture of the organisation (Handy.

2: CHALLENGES OF MODERN HUMAN RESOURCE MANAGEMENT Chapter objectives. reactive.  Discuss the appropriate responses to each challenge. After reading this chapter. marginal. formal defined roles Specialist/ professional Cost minimization Largely integrated into line management Maximum utilization (human asset accounting).  Appreciate the relevance of job redesign especially the concept of flexitimes. centralised. Introduction. ad hoc. it is expected that the reader will be able to:  Explain the challenges faced by a contemporary human resource manager. Among the many major changes that are occurring in the field of human resource management include the following: 15 . human resource management adopts an open system and long-term approach unlike Personnel Management. mechanistic. collective. STEREOTYPES OF PERSONNEL MANAGEMENT AND HRM PERSONNEL HUMAN RESOURCE MANAGEMENT MANAGEMENT Time & planning perspective Psychological contract Control systems Employee-relations perspectives Preferred structures/systems Roles Evaluation criteria Short-term. low trust Long term. flexible roles. integrated. Commitment Self control Unitarist. strategic. Organic. CH. individual. devolved. high trust Bureaucratic. Many problems are caused by constant changes that occur both within and without the firm. proactive. compliance External controls Pluralists.Guest (1987) in his article “Relations” drew a model illustrating the “stereotypes of Personnel Management and Human resource management” To him.

increasing availability of household labour saving appliances. Steadily increasing majority of white-collar employees in place of the blue collar ones. There has been a trend towards the professional jobs as opposed to the manual jobs requiring fewer skills. More working mothers vi. Laws. This makes it difficult for them to become regular members of an organisation. Several forces have operated to increase both the number and percentage of women in the labour force in recent years. Further distinctions between men's occupations and women's occupations are disappearing. Increasing levels of formal education for the entire workforce iii. as well as activist groups. Steady increases in the level of formal education would seem to bode well-continued change. ii. for example. Professionals are typically less inclined to join labour unions. This also calls for redesigning and reorganising.1. Chemilil Sugar Company has been in the forefront in the provision of childcare services. but they have greater expectations in terms of individual treatment by 16 . Increased number of minority members entering occupations requiring greater skills. equal opportunity efforts being made by governments in different parts of the world. and providing child care during working hours. fewer children being born or expected by women. More married female employees v. sailors on ships engineers. This higher educational attainment has contributed to better jobs and higher income for the people involved. telephone line women. jobs to effect a match with the better-qualified personnel of frustration. In Kenya. Culturally diverse workforce Prohibition of discrimination requirements for positive action to redress imbalances in work force mix have led to greater numbers of minority personnel being hired for all types of jobs. In the USA the proportion of blacks. and artisan-type jobs. Also. There has been a long-term trend towards mass education in many countries. absenteeism. Increased educational levels create human capital that adds value to an organization. Teso. managerial. vii. and turnover. and Tugen. These forces include the steady decline in the fertility rate since the late 1950's. and university professors. Changing Mix of the Workforce i. grievances. of significance to the manager is that increasing proportions of employees are married and/or have children under the age of 6 years. and an increase in women's liberation movements. clerical. More female employees iv. Marakwet. Pokot. technical. sales. have contributed to greater numbers of female employees entering the workforce. executives. Women now hold jobs such as jockeys. and human resource managers should seriously consider practices such as flexible working hours. has increased significantly in professional. minorities include the Ogiek. sharing of one job by two or more workers.

30 a. a few firms have moved to pay the employee for skills possessed rather than for skills demanded by the job.00 p. Core time where all employees must be present 4. typically spans four to six hours. 7. Concerning pay. Flexitime for quitting depending on the arrival time. Work was regarded as having a spiritual meaning.m. Family activities. the performance of jobs tends to be more difficult to evaluate objectively.management.30 a. Consequently organisations have had to introduce a number of changes in their human resource so as to attract the scarce resources. avocations. .m. Moreover.00 p. Contemporary employees have less of the work ethic mentality in them. centred in the regular workday.00 a.m. 4.9.00 p. and it was emphasized by such behavioural norms as punctuality.m. Flexitime is a program that allows flexible starting and quitting times for the employee. compressed workweek and the flexible working year (flexi year). and assignments in government. .all employees must be present 11. a cafeteria arrangement has been proposed where the employee can periodically choose what particular benefits he/she desires while remaining within an overall schedule are being reorganised Perhaps one of the most relevant work redesigning strategy is the use of flexible working arrangements.m. diligence.00 p. One implication of this fact is that high schools dropouts will find it more difficult to get good jobs.m.6. Employees took their jobs very seriously. An illustration is: 1. churches.00 a. Ideally everyone is expected to work a fixed daily schedule known as the "core time". 3. . For example. As far as fringe benefits are concerned.00 a.1. . and frugality.m. 2.m.m. leisure. attempts have been made to redesign jobs to make them more challenging so as to meet the needs of the human ego. Yet in some countries the population is aging and hence there are fewer workers than the demand for them. These include the flexible working day (flexitime). 2.11. 5. Workers can elect to start and finish work within the flexible band intervals. More and more tasks formerly performed by unskilled labourers have been taken over by machines. Core time .4. In the past most workers had a set of values generally characterised by the term "work ethic". Flexible time for taking a 30 min lunch 1. and schools are all equally viable means through which a person can find meaning and become self-actualised. . honest. 17 . This period. A "flexible band" of up to several hours replaces the specific starting and quitting times.m. Changing Values of the Workforce The changing mix of the workforce inevitably leads to introduction of new values to organisations. Flexible band for reporting 9.00 p.

There are difficulties in recording hours actually worked.  Improved employee morale. Moreover. The result is an increased ability to schedule leisure activities. Disadvantages of Flexitime Some of the limitations of flexitime working arrangements include the following. 18 . There may also be conflicts with certain laws that require the payment of overtime for hours worked in excess of eight per day or work done before eight o’clock in the morning or past five o’clock in the evenings.  Less "killing time" until quitting time because of reluctance to begin a new task  Less labour turnover  Employees are treated substantially in the same way as managers and professional personnel. and reduced absenteeism and sick leave. thereby forcing the problem to be postponed until the core period when all the employees are present.       Utility costs are increased since the plant is open for longer periods of time Not all the necessary employees may be present when a particular problem arises.  Better fit of work time to the employees "body clock"  Improved handling of fluctuating workloads  Increased customer service because the establishment is open for more hours in any one working day. and a lot of paperwork may be involved. it becomes easier to access retail and services outlets during their free times.Explanations for this include: Flexitimes often lead to productivity improvements because of the following reasons. elimination of tardiness.  Improved public relations as an edge in recruiting employees. family responsibilities and personal chores. some employees put in extra hours under flexitime systems because they feel more freedom and interest in their work.  Less time in commuting to and from work and reduction of traffic congestion and air pollution. Hours worked tend to be more productive because employees are likely to leave at a 'stopping point' instead of slowing down towards the end of the work day. Supervision may become a problem since a single supervisor cannot be present for the full eleven or twelve hours of the authorised day There may be some confusion for customers and suppliers who are not familiar with the varying attendance of personnel under flexitime arrangements Indeed.

or 5/40. morale and productivity. To them some questions such as those relating to pregnancy. they expect to buy good homes. health and safety. food. affirmative action and so on. Some employees are joining labour unions in an effort to pressurize management for material things such as higher wages and more fringe benefits.Shorter workweeks/compressed workweeks are schedules with fewer than the traditional five workdays a week for forty hours. so that people with a strong leisure orientation can be expected to react positively to it. 12 hour shift. The short-term orientation of many business managers is also to blame for the reduced productivity. There are several ways to compress the workweek and day. 4. Nevertheless. and four day. Changing Levels of Productivity In many countries. It leads to an increase in job satisfaction. cars. The hours are increased so that the hours worked per week still total forty. They also expect to make enough money to educate their children in excellent schools and to buy luxurious goods. drinking habits. Changing Expectations of Citizen-Employees Modern employees have greater expectations from their employers. Affirmative action laws have also led to more females and minorities being employed. These include working fewer hours in a regular five day week. the traditional 5/40 is more popular among organizations. and reduced turn over and absenteeism. Managers also forced to involve employees in decision-making. Consequently. 19 . and whether the job applicant has ever received psychiatric counselling are considered an invasion of privacy. kinds of friends. Instead. records of arrests. they may ignore the much needed long term investment which leads to profits over the longer term. 40 hour week. and a say in matters affecting them. freedom from discrimination. Issues such as freedom of speech and the right to privacy are also gaining prominence. 3. three-day. type of neighbourhood in which one lives. Initially such employees may be less productive. The managers may act from the pressures of financial institutions and other stakeholders to present profits over a very short time period. employees want to contribute in decisions that affect them. Employees often question some of the information they are required to provide in order to obtain and hold jobs. The reasons for this decline in productivity include various government regulations which have added to the cost of doing business without enhancing productivity in the short run.. and also to demand for fair treatment. and clothing. Through working. such as laws relating to environmental protection. ability to pay bills. The 4/40-week permits non-work time scheduling. Employees are also resisting the traditional master servant relationships that simplified the relationship between the employer and the employees. the human resource manager is faced with the acute problem of declining productivity.

Productivity gains are harder to achieve in service businesses compared to goods manufacturing businesses. droughts. narrow and meaningless jobs and autocratic managers who deny employees the opportunity to participate in decisions that affect their work. religion. Epidemics. and mudslides among others. maintenance. The laws govern activities related to the procurement. Examples are El-Nino. development. Asian Bird Fu and Tsars.There is also a trend towards service businesses. Natural Disasters. The human resource manager often has an uphill task trying to eliminate discrimination based on race. earthquakes. 11. In many situations. gender. Leaner Workforce. organizations may need the services of a lawyer to interpret the labour laws. Discrimination – it is difficult to get rid of all forms of discrimination in the workplace. compensation. and Katrina. and so on. integration. Somalia. The end result is fewer workers and the loss of valuable skills which take a long time period to develop. An example is the minimum wages Act that specifies the minimum wages an employee can be paid. 7. Changing Demands of Government Human resource managers must also adhere to the various government laws that relate to employees.the human resource manager is faced with the challenge of having to maintain a leaner workforce in an effort to cut costs.rapid changes in technology are forcing organizations to spend more on acquiring the technologies and on training the workers on the use of these technologies. These natural disasters often lead to massive loss of lives and property. 8. Ebola. La-Nina. 10. 6.modern employees are exposed to a wide range of epidemics which include HIV/ AIDS. it is even more difficult to improve productivity. and even Kenya have experienced these conflicts and their effects have been very painful. loss of life. Tsunami. 20 . And when the relationship between the workers and the management is poor. Political disagreements often result to conflicts. The result is an overburdened workforce which is prone to stress and burnout. and separation of the workers. 9. and the displacement of numerous others. Technological Changes. This is especially the case where the employees perceive high job insecurity. Southern Sudan. Regional Conflicts.these include floods. These epidemics often affect many people and results to numerous losses of life. 5.these are also a major challenge especially in third world countries.

And since they are business experts. ability to add value through people. people management and leadership skills. The effective performance of all these functions is only possible where the HR department is properly constituted. 3: CREATION AND MANAGEMENT OF THE HUMAN RESOURCE DEPARTMENT Chapter objectives. and resourcefulness as well as use of initiative in dealing with issues in the organization ( Brockbank et al. having a customer focus. influencing and interpersonal skills. Production. Line functions are those whose operations are concerned with the production of goods and services. BASES OF DEPARTMENTALIZATION HR departments are considered to perform a staff function. Staff functions provide advisory. the human resource function may be handled by the managing director or other functional specialists. Effective human resource specialists should have personal drive and effectiveness. The main line functions are Research and Development. then managers should choose the most optimal method of creating the department. However.CH. line managers. This chapter introduces learners to:  The differences between staff and line functions. the human resource needs increase and there may be need for a separate department to handle personnel issues. continuously learning.  The bases of departmentalization for HR departments. and employees people to do the work required by the organization. In situations where the organisation desires a human resource department. The human resource specialists are expected to provide their services to internal customers such as top management. The human resource department is expected to assist the organization to achieve its objectives by taking initiatives and providing guidance and support on all matters relating to the employees. strategic capability. This implies that the department takes an active role in managing and facilitating change. out sources those services that it can. 21 . as the organisation grows larger and larger. 1999). prepares its budget. or support services to the line functions. There are several basis of departmentalisation. which include the ones discussed below. Introduction: In many small organisations. professional competence. team leaders and employees. control. They also provide guidance and counselling to these groups of customers. Marketing and Accounting. they assist the functional managers in making relevant long run and short run business decisions.

1. Functional Base Perhaps this is the most common method of creating human resource departments. It is based on the functions performed by the human resource department. In many organisations, the basic grouping of functions revolve around procurement (employment), development (training), compensation (wage and salary administration), integration (labour relations), maintenance (health, safety and welfare services), and separation (employee services related to separation whether it is through retirement, death etc.). The exact breakdown would vary from enterprise to enterprise and it may be affected by variables as the size of the organization, abilities of the employees in the department, and the top management philosophy regarding the role of the unit. The structure of the unit would resemble the figure below: Fig. : HR department- functional structure.

Human Resource Director

Employment Services officer

Training &develop ment services

Wage and salary administ ration services

Labour Relations

Health and Safety services

Employee Separation Services

Fig. The functional basis of creating the HR department. 2. Clientele/ Customer Base Organisations serve different types of both internal and external customers. Each set of customers has its unique needs. The human resource department should be structured in such a way that the different clients are addressed. The main internal clients include scientific and technical personnel, workers who are new to industry, the hard cores who had been unemployed for long periods, managers, women, and labour organised into unions. Thus instead of a "total market" approach to all the employees in organisation, market or personnel segmentation would be more likely to lead to differentiation 22

in the treatment of personnel. As a result, there would be higher levels of satisfaction in dealing with the employees. Fig. : Human resource department- customer basis of departmentalization.

Human Resource Director

Scientific & Technical Personnel

Integration of workers

Culturally disadvanta ged

Manageme nt developme nt & Compensa tion

Labour Relations

Women workers

3.

Service Base

This is borrowed from Herzberg’s two factor theory of motivation. Herzberg proposed the 2-factor theory of motivation where we have motivators and hygiene factors. According to Herzberg, hygiene factors are those factors that, if present, don't cause motivation; instead they bring motivation to level zero. In situations whereby those factors are absent, they cause dissatisfaction leading to demotivation. Examples of these factors are in the areas of:      Physical working conditions- if the working conditions are good, motivation goes to level zero. Job security- insecurity in the workplace is a source of dissatisfaction. Management styles- dictatorial styles of management may de-motivate workers. Salary- fair salaries do not necessarily motivate workers; unfair wages and salaries are a source of de-motivation. Interpersonal relations- poor interpersonal relations dissatisfies employees.

Herzberg also proposed the concept of motivators. These are the factors that, if present, bring about positive motivation. He proposed the following to be the main motivators for employees:  A work which allows a person to make some concrete achievement  Recognition of the achievement  Responsibility exercised by the person  Opportunities for job growth  The interest value of the work itself 23

If one considers the reasoning advanced by Fredrick Herzberg, then the human resource department can be structured in such a way as to take care of both the hygiene and motivation factors. This can be done by: i. Preventing dissatisfaction through hygienic maintenance ii. Promoting satisfaction through motivators The functional breakdown of the motivator division would include: a. An educational function to convince all managers that satisfaction comes basically from the job content and not the surrounding environment. b. A job design function to enhance interest and pride in work c. A remedial function involving training and education to overcome technological obsolescence and poor performance of specific individuals and groups. In most instances, the particular personnel department organisation that is adopted is a combination of bases, rather than any single one.

24

CH.4: HUMAN RESOURCE POLICIES
Chapter objectives
This chapter entails a detailed explanation of:       What human resource policies are; Why organizations adopt human resource policies; The importance of writing down policies; The procedure for formulating policies; The process of communicating policies; The critical human resource policy areas.

Introduction.
A policy is a plan of action. It is a statement of intention committing management to a general course of action. A policy statement is specific. It commits management to a rather definite course of action. An example of a policy is stated below. "Our policy is to institute every practical method for engineering safety into our processes and equipment, to provide protective clothing where necessary, to train employees in safe operating procedures, and to vigorously enforce established safety rules. Our policy is to provide a healthful plant by giving adequate attention to cleanliness, temperature, ventilation, light, and sanitation". A policy is a statement of intended conduct, or a rule of behaviour, which is intended to apply across the organisation. It is an expression of the organisation’s values and beliefs concerning all the major functions of the enterprise. Ideally policies tell us how the organisation intends to go about achieving its objectives. A policy does not spell out the detailed procedures by which it is to be implemented. That is the role of a procedure. A procedure is really a method for carrying out a policy. A policy should be stated in terms broad enough for it to be applicable to varying situations. Lower level managers who apply policy must be allowed some discretion in carrying out the policy. The circumstances in one department may differ from those in another hence a rigid, excessively detailed policy statement might cause injustice if supervisors were not granted some latitude or freedom of application. 25

5. survey industry and community practices. Actual results can be compared with policy to determine how well the members of the organisation are living up to professed intentions. Only when policies are reduced to writing can they be communicated to all employees. It lets them to know where they stand in relation to any circumstance that occurs.Why should organizations adopt definite Policies? It is important to understand why an organisation should have clearly established policies. This is especially true where the policies reflect established principles of fair play and justice and where they help people grow within the organisation. Policies promote stability. and grievance handling. 26 . 3. The president and the board of directors make the actual and final decision on the substantive content of the policies. Prevailing practice among other companies in the community and throughout the nation in the same industry 3. Continuity of action is assured even though top management personnel change. promotion. 6. Favouritism and discrimination are minimised. The attitudes and philosophy of middle and lower management 4. 6. The knowledge and experience gained form handling countless personnel problems on a day-to-day basis. The attitudes and philosophy of the board of directors and top management 5. The Human resource (or industrial relations) director will do the actual work of formulating the written expressions of company personnel policies. training opportunities. Management must examine its basic convictions as well as give full consideration to prevailing practice in other organisations. Policies protect the employees from unfair practices in the organisation and vice versa. insurance benefits. The tenure of office of any manager is finite but the organisation continues. written policies are almost a necessity. There are five principal sources for determining the content and meaning of policies. 4. Sound policies help to build employee enthusiasm and loyalty. pension rights. Past practice in the organisation 2. The work involved in formulating human resource policies requires that the managers give deep thought to the basic needs of both the organisation and the employees. FORMULATING HUMAN RESOURCE POLICIES Policies are not created in a vacuum. transfer. Some of the reasons include the following: 1. Policies serve as a standard of performance. Established policies assure consistent treatment of all personnel throughout the organisation. These are: 1. lay off. They will study existing documents. The law of the country is a major consideration when formulating policies. POLICIES SHOULD BE IN WRITING Written policies let everyone know just what kind of treatment they can expect to receive from management. and interview other executives within the organisation to collect appropriate information. They ensure reasonably consistent treatment throughout the company on matters such as pay. 2. In large organisations containing many dispersed plants.

and other forms of worker participation. on their views about personnel policies and where they think could be improved 5. Check with managers. employment laws. 1. health and safety laws etc. representatives and agree policies with management and union 9. 27 . especially the extent to which they are inherently fair and equitable and are implemented fairly and consistently. Consult. Communicate the policies with guidance notes on their implementation as required. CRITICAL POLICY ISSUES Most of the critical HR management issues are included in 4 broad areas: 1.g. Consider doing this through an attitude survey.management relationships. Supplement these communications with training COMMUNICATING POLICIES Human resource policies must be communicated to everyone within the organisation. A real education program should be set up to teach all management personnel how to handle various personnel problems in the light of the newly created policy. 3. Analyse existing policies – both written and unwritten 2. Employee Influence With the increasing popularity of reengineering. It is very important to gain an understanding of the corporate culture of the organisation and how this affects work patterns.The following steps should be taken when formulating or revising personnel polices.g. Total Quality Management. and the way in which those relationships (e. Such policies specify the degree of authority and responsibility that are delegated to employees and employee groups. Seek the views of union representatives 7. But to achieve real understanding this should be followed up with an oral explanation and interpretation generally by first-line supervision. co-operative labour. more and more organisations are developing policies that define the scope and breadth of employee influence in managing the organisation. Analyse the information obtained in the first seven steps and prepare draft policies 8. 6. The most common way of informing non-supervisory employees is by means of the employee handbook. discuss. Seek the views of employees about personnel policies. Quality circles Vs self managed work groups) may be institutionalised most effectively. Nevertheless the steps below can be an appropriate guide for establishing policies. Analyse external influences e. preferably starting from the top. Assess any areas where new policies are needed or existing policies are inadequate 4.

The overall policy defines how the organisation fulfils its social responsibilities of its employees and other stakeholders.g. 3. Reward Systems The objectives of reward systems include the attraction. a. f. a. The contents of the overall policy vary from firm to firm but the main items included are: a. Should pay incentives reward individual or group behaviour? b. Employment Equal opportunity Managing diversity Reward Development and training Employee involvement Technology Health and safety Sexual harassment Reward Work-life balance Discipline Grievances OVERALL POLICY Organizations normally have an overall policy which states what the organization stands for. l. j. This is normally a brief statement just the mission statement. k.2. to provide equal opportunities for employment and promotion and to operate an equitable payment system. and retention of employees at all organisational levels. g. it sets out its attitudes towards them. Work Systems Policy decisions that affect work systems include the kind of manufacturing and office technologies implemented and the way in which labour is divided. promotion. e. h. Should employees share profits or reductions in operating costs? c. fair treatment and terminations. which may be contained in the overall statement or issued as separate documents are as follows. career development and advancement. Personnel Flow Policies may be set in the areas of selection. motivation. d. The organization should commit itself to protect individuals from any unfair decisions made by their managers. b. HUMAN RESOURCE POLICY AREAS Examples of the specific policy areas. This statement is an expression of the organization’s values or beliefs about how people should be treated. m. The accomplishment of these objectives forces management to consider a number of critical policy issues e. job security. 28 . c. i. Equity – the policy should state that the organization advocates for treating employees fairly and justly without any discrimination. What is the most effective mix of pay and non-pay rewards to motivate performance? 4.

A firm can have a policy such as: “All vacancies will be first advertised within the organisation before being made public” 4.The policy should state the company's wish to promote from within whenever this is appropriate as a means of satisfying its requirements for high quality staff. 2. Quality of Working Life – it commits the organization to consciously and continually improve the quality of working life as a means of increasing motivation and improving results. Promotion . c. Human Resource Planning – this is a commitment by the company to planning ahead in order to maximise the opportunities for employees to develop their careers within the organisation and to minimise the possibility of compulsory redundancy. It could also state that the company would use its best endeavours to provide equal opportunities to disabled people. The policy here can be: “The company will conform to the spirit as well as to the letter of the law in employment matters” 3. The human resource department should have policies relating to the following areas of its operations. irrespective of sex. age. disability. and no one will be discriminated against in terms of sex. creed. Employees will also be expected to fulfil their personal obligations even when they are working for the organization.an organisation may deliberately set out in its policy statement that. race. EMPLOYMENT POLICIES Policies are normally laid out in all areas of the organization.A reference should be made in the general employment policy statement to the effect that the firm is an equal opportunity company. age or any factor other than ability to fulfil the job competently” The policy should also deal with the extent to which the organisation wants to take affirmative action to redress imbalances between the numbers employed according to sex or race or to differences. ethnic origin. d. The policy should. Quality of Employees . as a company dedicated to the pursuit of excellence and professionalism. Consideration – it is a commitment to ensure individual circumstances are taken into account when making decisions which affect the employees. Working Conditions – the organization may state that it will endeavour to provide healthy. it believes in recruiting people who have the ability or potential to meet the high standards of performance that will be expected of them. and pleasant working conditions. safe. or marital status. however.b. The Equal Employment Opportunity policy should spell out the company's determination to give equal opportunities to all. 1. 29 . in this regard a policy can read like: “All posts will be filled on grounds of merit only. recognise that there will be occasions when the organisation’s present and future needs can only be met by recruitment from outside. Equal Opportunity .

the policy should state how employees can go about solving their grievances. train and promote all employees especially the older employees.the policy would express the company's strong disapproval of sexual harassment and the measures taken to eliminate it. Redundancy . Managing diversity policy will acknowledge cultural and individual differences in the work place. Substance Abuse – policies here concern how the company treats employees with drinking or drug abuse problems. 8. state that the organisation values the different qualities which people bring to their jobs. Gain sharing . and effectively. Managing Diversity Policy – this is concerned with how the organisation manages the diverse people it employs. the arrangements for restricting smoking to designated smoking areas 12. Smoking policies will spell out whether or not there is a complete ban on smoking and. Such a policy would recognize that there are differences among employees and that these differences.a pay policy could cover matters such as paying market rates. A good example of a policy in this area is: “Every employee will have the right to fair treatment in matters of discipline”. if properly managed. Discipline .5. will enable work to be done more efficiently.The disciplinary policy should state that employees have the right to know the rules of the organization and what would happen when a certain rule is disobeyed. Pay Policy . However. and focus attention on individual differences rather than group differences 6. and dealing with complaints Provide for counselling services for those concerned about harassment Set out the procedure for dealing with harassment 11. 9. Ethnic Monitoring – this policy states how the company deals with monitoring the employment of ethnic minorities. emphasise the need to eliminate bias in all areas related to human resource. 11. Age and Employment .the policy would define no-smoking rules. Such policies cover how the company intends to provide health and safe places and systems of work 14. Smoking . Paying for performance. if redundancy is unavoidable then it will be done in the best way possible. 7. could state the organization will do its best to avoid declaring employees redundant.The policy would define the approach the company adopts to engage. 13. if not. These policies can:     Define sexual harassment State unequivocally that sexual harassment at work is not tolerated and is regarded as a matter of gross misconduct Define the role of managers in preventing harassment.The redundancy policy. Grievances . Sexual harassment . Health and Safety Policy – it is concerned with how the company approaches the employment of people who have health problems including those who are HIV positive or actually suffering from AIDS. 10.sharing in the gains (added value) or 30 .

then new areas of policy may need to be formulated. The policy could also refer to the basis upon which the company intends to communicate information to employees. realise their full potential and advance their careers. Employee Development Policy . equal pay for work of equal value. An example of a policy here is: “No organisational changes will be implemented without thorough consultation with all those directly affected by the changes” 17. The policy may emphasise that the organisation perceives Trade Unions as partners.this policy should spell out the company's belief in involvement and participation as a means of generating the commitment of all employees to the success of the enterprise. The above areas are not conclusive. For example. providing an equitable pay system. Employee Relations Policy . The policy may read like: “The firm will always negotiate in good faith with trade union representatives” 18. It will also state the terms under which the company works with trade unions. As the organization and its environment evolve. policies may be needed in the areas of e-mails and bullying in the work place.this policy will state the company's commitment to allowing employees to represent their interests to management through trade unions.such a statement would refer to consultation about the introduction of new technology and to the steps that would be taken by the company to minimise the risks of compulsory redundancy. staff associations or some other form of representative system.This policy should express the company's commitment to the continuous development of the skills and abilities of employees in order to maximise their contribution and give them the opportunity to enhance their skills. A development policy includes: “Employees will be expected to participate in training and development activities in order to develop their skills” 16. New Technology Policy . Involvement and Participation Policy . subject to overriding market considerations. An example of a policy here would be: “Pay levels will be maintained so as to compete with the best in the industry” 15. 31 .profits of the company.

Elgon Maasai. promotion. Moreover. discrimination refers to employment decision making that or working conditions that are advantageous or disadvantageous to members of one group compared to members of another group. refusal to hire married women. Asians) The Equal Employment Opportunities Act (EEO) requires that employment records be maintained for so that as many communities as possible are included in the register of employees. This ensures that minority races are not discriminated against. discharging an unmarried pregnant female. Various components of government have decreed that certain employment practices must be followed.5 ACQUISITION OF HUMAN RESOURCES FAIR EMPLOYMENT PRACTICES Chapter objectives.. Among the illegalities are the refusal to hire women. Consider the case for blacks and whites. Tesso. refusal to hire a female because she might become pregnant. INTRODUCTION. discharge. it is also an unfair employment practice to discriminate on the basis of pregnancy. suspension. or any other term of employment.UNIT 2: Ch. Disparate Treatment occurs when persons of one race. Njemps. Minority Races (Ogiek. refusal to hire females because heavy weights must be lifted and taking away seniority rights after pregnancy leave. requiring pregnant employees to take leave without regard to ability to perform the job. . The objectives of this chapter are to enable the reader to:  Understand the need for fair employment practices. sex or ethnic group receive different treatment from persons of another group who are otherwise similarly situated. These cover the areas of discrimination. with young children. pregnant employees 32 2. but not men. or related medical conditions in hiring. Discrimination can take different forms. FORMS OF DISCRIMINATION: 1. Disparate effect occurs when any particular practice has an adverse impact upon a protected group such as women or minorities.  Examine and understand some of the different forms of discrimination that can occur in the process of employing and managing workers. Female Employees Many factors should be considered in relation to the employment of females. Generally speaking. childbirth. Negative present effects of past discriminatory practices may also be construed to imply discrimination.

Sexual harassment is prohibited especially where: a) It is made an employment Condition – when submission to or rejection of such conduct is used as a basis for employee decisions. one of USA’s oldest CEOs in the history of USA who worked hard to see that such a law was passed on a national basis. must include coverage for pregnancy of employees in the same manner as for other employee disability or sick benefits. e. requests for sexual favours. Such conduct/ condition creates an employment consequence c) 4. Fringe benefits or insurance programs. This is only a 33 . b. most employees are expected to retire after attaining 55 years of age. The Equal Employment Opportunities Act (EEO) Requires That: a. If employers accommodate other temporarily disabled workers. e. In the USA the law prohibits discrimination on the basis of age for anybody between 40-70 years except in high risk jobs (police officers.g. hostile. less creative. seniority and accrued retirement benefits. It is Ronald Reagan. they must make similar accommodations for pregnant workers. The Older Employee The retirement ages vary from country to country. The employer cannot require female employees to take leave arbitrarily at a set time in their pregnancy. if such exist. f.should be treated the same as other employees on the basis of their ability or inability to work. An example would be the top CEOs. Full reinstatement rights must be given to female employees on leave for pregnancy related reasons. Leave times are to be determined by the ability of the employee to do the job. c. retention. 3. Employers providing extended medical insurance benefits to husbands of female employees must cover equally the medical expenses of male employees. b) If it creates Job interference – when such a conduct has the effect of interfering with job performance or creating an intimidating. and unable to deal with crisis situations. or offensive working environment. temporary relief from having to lift heavy materials. resistant to change. such as promotion. Sexual Harassment Sexual harassment is defined as “unwelcome sexual advances. and other verbal or physical conduct of a sexual nature". The protection against sexual harassment extends to both male and female employees. including pregnancy. An employer cannot refuse to hire a pregnant applicant so long as she is able to perform the major functions of the job. Older employees are often stereotyped/considered to be inflexible. In the case for the Kenyan public service. so on. d. fire fighter) and high-paid private employees who could retire with very liberal pensions. including credit for previous service.

 Make reasonable accommodation to the physical and/or mental limitations of an handicapped applicant. Moreover.  Train supervisors on how to handle the handicapped employees. Affirmative action requires that employers should:  Take positive steps to recruit qualified handicapped workers.perception which can end up being the reality. Ideally the older employees should not be discriminated against as long as they are capable of performing the work. they offer maturity derived from experience. they are less prone to accidents than the younger employees. epilepsy. Further employers are required to "accommodate the religious needs of employees" when such accommodation can be made without serious inconvenience to the firm. 6. Nationalities The EEO guidelines prohibit its discrimination on the basis of language requirements. 34 .  Modify human resource practices to meet the needs of the handicapped. and having a surname indicative of a particular national origin. Nevertheless. but is now mentally sound might still be regarded by some employers as physically disabled because of the record of mental illness. religious observances. Diabetes. Thus. In addition. one who had been in a mental hospital. Health conditions. 8. and so on are in many cases not legal basis for discrimination. 7.Medical conditions such as being HIV positive or having the AIDS sickness. TB.  Require all employees to provide strong internal support to the fellow employees who are handicapped. and practices is forbidden. they are the equals of the younger in terms of quantity and quality of out put. 5. membership to organisations promoting rights of particular groups. Religions Discrimination based on religious beliefs. height and weight requirements. or one who has a record of such impairment or is regarded as having an impairment. The Handicapped A handicapped person is one who has a physical or mental impairment that substantially limits one or more of life's major activities.

 Understand the outcomes of the strategic human resource planning process including the need for peripheral employees.  Discuss the strategic human resource planning process. The supply of human resources must be sufficient to ensure the healthy operation of the organisation. 2001: 16) Human resource planning is the process by which an organisation ensures that it has the right number and kinds of people at the right time. Attempts must be made to match human resource supply and demand. where it is going. making it compatible with the achievement of the organisation’s future objectives. capable of effectively and efficiently completing those tasks that will help the organisation achieve its overall objectives.this is one of the most valuable resources to any organisation.perhaps even to anticipate them (Ferris.  Distinguish between human resource planning and strategic planning.CH. DEFINITION OF HUMAN RESOURCE PLANNING Human resource planning is the process by which an organisation ensures that it has the right number and kinds of people. at the right places. Introduction: All organisations require resources in order to accomplish their goals. The purpose of human resource planning is to assess where the organisation is.6: STRATEGIC HUMAN RESOURCE PLANNING Chapter objectives. Human resource planning seeks to determine the number and kinds of people the organisation needs now and may need in the foreseeable future and seeks ways to satisfy those needs . G. Physical resources which include buildings and equipment. and what implications these assessments have on future supplies and demands for human resources. in the right places 35 . machines People . Without clear-cut planning. After going through this chapter the reader is expected to be able to:  Define human resource planning. Thus every organisation needs proper human resource planning. Human Resource planning translates the organisation’s objectives and plans into the number of workers needed to meet those objectives. The main resources required include the following:     Financial resources such as money and credit.R. estimation of an organisation’s human resource need is reduced to mere guesswork. at the right time.

expertise and competencies required. information such as whether growth or decline is projected and the type of skills that will be required. enable an organisation to postpone or implement a variety of recruitment and training activities or to capitalise on the availability of a given mix of skills to pursue a new venture.  Reduces its dependence on external recruitment when key skills are in short supply by having a reservoir of its own employees. 36 . Human resource planning is based on the belief that people are an organisation’s most important strategic resource and matches resources to business needs (Bulla and Scott: 1994) The aims of human resource planning are to ensure that the organisation:  Obtains and retains the number of people it needs with the skills. HUMAN RESOURCE PLANNING AND STRATEGIC PLANNING Human resource planning is a product of strategic planning.  Develops a well-trained and flexible workforce. The link between human resource planning and strategic business planning is important because. It is important to consider the current and potential availability or supply of human resources skills in the organisation and the marketplace. It determines the human resources required by the organisation to achieve its strategic goals. for example.  Makes the best use of its resources  Anticipates the problems of potential surpluses or deficits of people. in the development of an informal forecast of the firm’s human resources needs.capable of performing the tasks necessary to achieve the organisations objectives (Armstrong M: 2001. FRAMEWORK FOR STRATEGIC HUMAN RESOURCE PLANNING The strategic human resource planning process can be captured in a conceptual model such as the one shown below. Timely and accurate human resources information may. 357) Human resource planning is the process for ensuring that the human resource requirements of an organisation are identified and plans are made for satisfying those requirements. it is necessary to have input concerning the direction the organisation will be taking in the future.

Making sure that the right people with the right skills are at the right place at the right time is quite consistent with helping people plan their careers in organisations and establishing routes to take and time frames to meet. career planning and development activities in organisations represent a logical component of human resources planning. and cultural change and so on. competence building. Human resource strategy enables an organisation to remain effective and efficient in managing people in line with the changing business and environment.Organizational Strategic Planning Process Business Unit Strategic Planning Process HR Supply and Demand Analysis  Environmental Scanning  Forecasting  Succession Planning HR function Strategic Planning Process Human Resource Plan Implementation Within a broader. Due to the changing dynamics of the human resource function. more integrated view of the human resource function. there is greater need for human resource strategy. HUMAN RESOURCE STRATEGY A strategy is a game plan that is used to interact with the environment and make the firm achieve a competitive advantage. 37 . It is a comprehensive approach covering the vital issues such as change management. Companies that are successful are those that begin as early as possible to define and include in their activities a unique competitive position including the human resources.

others pay a flat hourly rate or salary regardless of individual productivity 6. A Company may use a well-defined progressive discipline system or leave disciplinary actions entirely up to the supervisor 38 . sales commissions. and profit sharing. Recruitment and selection strategies – some firms wish to promote from within by looking first at their current employees when filling managerial positions. Examples of the range of personnel/human resource strategies include: 1. Personnel planning strategies – some companies do little planning for future personnel needs. 2.The list of personnel strategies is endless. Training and development strategies – some companies allow employees to learn their skills on the job. others do not. dental. Others use carefully developed appraisals and formal appraisal interviews 5. They range from tightly controlling labour costs. Employment relations strategies – some companies adapt an antagonistic posture toward unions. A number of companies offer liberal medical. Others spend thousands of dollars carefully training employees before they are allowed to assume job responsibilities 4. Some companies use incentive pay. Performance appraisal strategies – some companies use very informal performance appraisal systems such as occasionally telling an employee how he/she is doing over a cup of coffee. to enhancing employee creativity. whereas others pay above. Compensation strategies – some companies pay below the market rate. Others use succession planning and computer simulations to determine the type and number of employees needed 3. encouraging sales and production performance. Ultimately each is designed to help the organisation fulfil its mission and objectives. and hospitalisation insurance plans whereas others do not. Other companies seek managers from outside the company.

Assessing the current human resources can be done by auditing skills and jobs as detailed below: 39 . Assessing the current human resources of the organisation 2. Strategic Planning Human Resource Planning Find out what is available Compare Forecast the HR Requirement Demand = Supply (No action) (Action) Demand > Supply (Action). training levels. This will be done after the human resource manager is clear of the human resources available in the organisation. Assessing where the organization is going (objectives) 3. The human resource manager begins by developing a profile of the current human resources in the organisation (auditing skills) and the jobs that exist in the organisation (auditing jobs). Forecasting the supply and demand for human resources 4. Matching demand and supply 5. Demand < Supply (Action) Steps in Human Resource Planning 1.THE STRAGEGIC HUMAN RESOURCE PLANNING PROCESS Human resource planning involves matching the available employees with the jobs to be performed and taking care of the shortages and overloads that might be detected. Outplacement services 7. This can be shown in a figure as below. Dealing with overloads 6. absenteeism and death of employees. This is done by scanning the internal environment to know what has been happening to human resource for instance the labour turnover. Dealing with Shortages 1 Assessing the current human resources in the organization.

Their level of education and training Prior employment and time in each job Current position Performance ratings Salary level Languages spoken Capabilities Specialised skills for each employee in the organisation From a human resource planning viewpoint.          A list of names of the employees. How essential each job is.  Separation of unwanted staff. promotion and also for transfers. they can make a detailed audit of current employees and their skills. This analysis also helps an organisation to take advantage of opportunities and take decisions such as:  Training of employees. This report also has value in other personnel activities. The jobs that will be needed to implement the organisational strategy. The basic source of data on employees and their skills is the human resource records of the organisation.  Development of managers. such as selecting individuals for training and executive development.  Employment of more workers. It can act as a guide for considering new pursuits for the organisation and can take advantage of opportunities to expand or alter the organisation’s strategies. The characteristics of anticipated jobs. This auditing of skills would include developing and analyzing a databank containing the following information. Auditing jobs The current jobs in the organisation are analysed in terms of the following       The jobs that exist currently. 40 . b. Auditing skills Once planners obtain an understanding of current jobs and the new jobs that will be necessary to carry out the organisation’s plans. Assessing where the organisation is going The organisation’s objectives and strategies for the future determine future human resource needs. The number of individuals performing each job. this input is valuable in determining what skills are currently available in the organisation. 2.a. The reporting relationships of jobs.

In many developing countries. in order to forecast future human needs. in a data processing consulting firm that finds it has more business opportunities that it can handle. however. The opposite also holds. particular skills may be necessary and these skills may be scarce. In some situations. there are many individuals entering the workforce.  Economic forecasts for next few years. This can be no more than guesswork unless there is reliable evidence 41 . The human resource manager should forecast the future supply of human resources from both internal and external sources.  Individuals graduating from schools. 3.g.  Technological developments. The demand forecasting techniques that can be used to produce quantitative estimates of future requirements are: Managerial or Expert Judgement This method simply requires managers to sit down.  Changing workforce compensation patterns. it is necessary to forecast the sales or revenues. Forecasting the supply of human resources in the future. and decide how many people will be needed to efficiently undertake the workloads. Demand forecasting is the process of estimating the future numbers of people required and the likely skills and competencies they will need.  Government regulations and pressures. the organisation can attempt to establish the number and mix of resources needed to reach these revenues. The internal supply of human resource will depend on the training and development. retirement policies among other factors.  Actions of competing employees. Based on estimates of total revenue. Where the net migration is into a certain area the implication is that there will be plenty of workers to employ in the future.  Factors affecting people entering or leaving workforce. The external supply of human resource will depend on:  Net migration into or out of an area. The satisfactory availability of such skills can determine revenue e.  Individuals entering or leaving the workforce. think about future workloads. colleges and universities. transfer.Demand for human resources is a result of demand for the organisation’s products or services. promotion. Thus.

An organisation with more people than it needs could do the following in order to downsize: 42 . 4. either to satisfy current needs or to stock pile for the future. to highlight areas where overstaffing may exist (now or in the future). having made some allowance for changes in organisation or methods. say. Thus comparisons are done on what is available and what is required. Work-study techniques for direct workers can be combined with ratio-trend analysis to calculate the number of indirect workers needed. Matching demand and supply of human resources The objective of human resource planning is to bring together the forecast of the future demand and supply. and forecasting future ratios. there are cases where the demand is greater than the supply. Dealing with overloads or surplus A surplus means that the organisation has more people than it requires. the number of direct (production) workers and indirect(support) workers in a manufacturing plant. The result of this effort will be to pinpoint shortages both in number and kind. The most important concern must be given to the determination of shortages which forces organisations to hire additional staff or to transfer people within the organisation. the organisation should reduce its workforce.available of forecast increases in activity levels or new demands for skills. Activity level forecasts are then used to determine direct labour requirements. The organisation should employ more people if the demand is greater than the supply. However. 5. Work Study Techniques Work study techniques can be used when it is possible to apply work measurement to calculate how long operations should take and the number of people required. Ideally the demand for human resource is equal to supply. and to keep informed of the opportunities that exist in the labour market to hire good people. Either a “top down” or “bottom up” approach can be used. if the supply is greater than demand. and the forecast ratio of indirect to direct would be used to calculate the number of indirect workers needed. However. If the demand is equal to supply then no action needs to be taken. This comparison assists the human resource manager to identify any gaps that may exist and to come up with the necessary plans to fill in the gaps. Ratio-trend Analysis This is carried out by studying past ratios between.

Attrition may therefore need to be supplemented by freezing hiring. Unless turn over is high.  Sacking employees for minor mistakes  Terminating contracts of employment after expiry of the contracts. Individuals offered this leave are usually employees whose jobs may be eliminated in the future. although subject to ethical tests. 6. Agriculture and seasonal industries) occurs where workers are recalled during the peak periods and laid off occurs during slack periods when the demand is low. A temporary layoff (like in Tourism. c) Lay offs – these can be temporary or permanent.  Retrenchment – This is when an organisation reduces its workforce because they do not need them. attrition will eliminate only a relatively small number of employees. These can be referred to a group of services offered to displaced workers especially those who lost their jobs involuntarily due reasons such as plant closures. The range of outplacement services include:  Personal career guidance and counselling  Resume’ preparation  Typing services 43 . Other methods of getting rid of excess workers. individuals who quit.a) Attrition and hiring Freeze – through attrition. b) Early Retirement/ Buyouts – Early retirement is a means of encouraging more senior workers to leave the organisation early. or retire are not replaced.  Setting unrealistic work targets. c) Leaves of Absence without Pay – this gives workers the opportunity to take leaves of absence without pay. Outplacement Services. Companies have no legal obligation to provide a financial cushion to laid-off employees. This may provide time for an employee who is financially capable to leave the organisation temporarily in pursuit of personal interests such as attending college so as to increase marketability and mobility. die. To provide this voluntary incentive. Those who remain must handle the same workload with fewer people. include:  Requiring employees to have certain academic qualifications. employers make additional payments to employees so that they will not be penalised too much economically until their pensions and social security benefits take effect. Lay offs may be an appropriate down sizing strategy if there is a temporary down turn in an industry. Such voluntary termination programs or buyouts entice an employee to quit with financial incentives and it is better than layoffs and individual firings.

part. The core employees are essential for the direction.this should be the last resort because it has serious consequences. They include:  Managers  Team leaders  Professional staffs in fields such as finance. Thus before an organisation commits itself to employing people on long term basis. This is especially the case in situations where the law requires displaced workers to be paid until they get other jobs. and development of the firm’s activities. 7 Dealing with Shortages If the results of human resource planning indicate a shortage the following steps should be taken:  Outsourcing  Use of temporary employees  Careful use of overtime  Part-time employees  Recruitment.  Knowledge workers involved in the development and management of new technologies. permanent or “core” employees and the peripheral employees. Cost – helping workers find jobs more quickly can cut down on unemployment benefits.  Training on interviewing workshops. coordination. Legal issues – the longer employees are out of work. 44 . Peripheral or contingent employees can be categorised into temporary workers. 4. Such a firm may not experience a lot of difficulties in future when it wants to get new employees.  Technicians and highly skilled workers in laboratories. and manufacturing departments who play key roles in projects or work teams. and personnel. design offices. and sub contracting. 3.time workers. Referral assistance Reasons for Outplacement 1. job sharing. Typically. Alternatives to full time employment Organisations normally employ full time. it should consider all alternatives to full time employment. new technology (home working & teleworking). Company image – outplacement efforts typically project the image of the company as a caring employer. legal. the more likely they are to consider suing for damages. Social responsibility – some believe that employers have a moral or ethical obligation to former employees. outplacement is done using outside firms that specialise in providing such assistance. 2.

It may be difficulty to control the quality and delivery of the goods and services of subcontractors.  Lower unit labour costs  Higher productivity. rapid access to skills and the retention of skilled employees who would otherwise be lost to the company. Telecommuting enables a firm to have its work done in low labour cost areas and to have its employees located anywhere on the globe. Advantages associated with their use include:  More scope for flexing the hours worked. and employment legislation purposes.  Less commitment compared to full time workers. Those who cannot occupy full time positions will also fit into the organisation. Some of the disadvantages of part. 45 . The drawbacks include clarifying the legal status of subcontractors for income tax. they can be used to match fluctuations in the level of business activity. Part-time workers are paid for the period they are engaged. Greater continuity of work occurs because even if one person is absent. Subcontracting is advantageous since it enables an organisation to concentrate its resources on the core business activities. National Insurance. the other(s) will be present. some employees and trade unions may react negatively to the use of subcontractors since they may want all the work to be kept within the company. Advantages of this include reduced employee turnover and absenteeism. also known as “temps” are used to reduce the cost of employing people on permanent basis. Job sharing occurs where two or more employees share the work. and management services.  Better and longer utilisation of the plant and equipment. or holidays. Employment costs are also reduced while flexibility and productivity is increased. personnel. Besides providing cover for staff shortages.Temporary workers. Teleworkers can be used in functions such as marketing. finance. New technology (teleworking and home working) involves people working at home with a terminal linked to the main company and possibly networked with other outworkers. Disadvantages include the administrative costs involved and the risk of responsibility being divided. Job security for the core employees is enhanced. At the same time. sicknesses.time workers are:  They may be less willing to work at certain times and they may be less mobile.  High rates of employee turnover. pay and benefits of one full time position. It enables an organisation to achieve greater flexibility.

This makes management of human resource challenging and more complex. When this happens.CONCLUSION Human resource planning is a key element for the success of any organisation. The environment and customer needs keep on changing. 46 . The human resource manager should make human resource planning a continuous process for the organisation to achieve its goals. the whole business set up in an organisation has to change.

Analyse and discuss a wide range of pre-employment test that can be used to screen potential employees. 7: RECRUITMENT AND SELECTION Chapter objectives. Therefore. Through recruitment an organisation will be able to attract and retain the interest of suitable applicants and to project a positive image of the organisation to outsiders. Understand the different sources of internal and external recruitment Explain how to deal with shortages of managers both in the short run and in the long run. Recruitment can also be described as those activities in human resource management which are undertaken in order to attract sufficient job candidates who have the necessary potential. The employees a firm has can create a major difference for the firm. promotions. lay-offs. In administering these activities the personnel managers work closely with operating/functional management RECRUITMENT This is the development and maintenance of adequate manpower sources. People have different performance levels and the success of 47 . Introduction The human resources of most organisations are viewed as their most important asset. The recruitment exercise should be done very carefully because employees are very costly to maintain. The employment function of a human resource department comprises the areas of:  Manpower Planning  Recruitment  Selection  Placement  Performance Appraisal  The changes of personnel status such as transfers. competencies and traits to fill job needs and to assist the organisation in achieving its objectives. It involves the creation of a pool of available labour from which the organisation can draw when it needs additional employees. Therefore the policies and programs the enterprise adopts to meet its work force needs are of vital significance. Following the completion of this chapter the reader should be able to:     Examine and analyse the process involved in the recruitment and selection of employees. employing the wrong person means paying for poor services.CH. The successes and failures of organisations are largely determined by the calibre of its work force (starting with the organisation’s management) and by the efforts it exerts. discharges.

Geographical location and coverage of the job. Openings often arise from resignations. Degree of autonomy expected of the job. Personal circumstances such as marital status. experiences and successes. Technical requirements of the job. The job description describes a job in terms of:       The title of the job. Sources of recruitment There are basically two (2) sources of recruitment namely:  Inside sources  External/ Outside sources INSIDE/ INTERNAL SOURCES: In filling vacancies from inside the firm. it is necessary to match job recruitment with the workers’ qualifications. Three methods can be used to recruit from among present employees. Physical requirements including appearance. The selection process must still be employed. Internal recruitment means that present employees are given the first chance for any better or more attractive jobs that arise before outsiders are considered. The personnel requisition form is then forwarded to the human resource department so that the right person can be acquired. Reporting relationships (below and above the position). Human resource requisition form This form contains both a job description (job profile) and a person specification (person profile or a job specification). Dispositions in the line of sense of maturity and responsibility. speech and so on. promotions. The personnel specification includes details in the lines of:       Attainments i. or transfers among other methods. Aptitudes and qualities such as ability to communicate and self-motivation. Duties and responsibilities involved in the job.e. When there is an opening in an organisation. 48 . the department concerned fills the personnel requisition form whose contents are a job description and a person specification. Interests outside the job. the standards of education and qualifications.other activities such as training may heavily depend on the kind of people recruited.

there is less risk of error in the selection and placement process. Inside moonlighting is an internal recruitment source used for short-term needs or small jobs.The personnel director and members of the operating management can review personnel records and appraisals forms to find qualified candidates. Small organisations often feel that they cannot afford the expense of comprehensive employee training programs. knowledge and personality characteristics of present employees than it can for job applicants who are interviewed in the employment office. It also promotes the culture of the organisation. Therefore. This is used especially for lower level employees. Employers quite logically seek to have the job assignments go to the most qualified persons as decided by the management. Internal recruitment is not only good public relations but it also encourages good individuals who are ambitious. The whole process of recruitment is less costly in terms of time and financial requirements. An opportunity to achieve these hopes fosters high morale. The bulletin board notice specifies the job title. Advantages of internal recruitment: Most people expect to advance to positions of higher pay and status during their working careers. Management can more accurately appraise the skills. Limitations of Internal Recruitment: In order for the company to fill its job openings from within it must have in operation training programmes by which people in lower level jobs can learn new skills in order to qualify for upgrading to more demanding work. qualifications that the employee must possess among other things. Further. there will be less induction time since the employee is already used to the organisation. The vacancy can be announced in the firm’s notice boards for any person who is interested to apply (job posting). The organisation offers to pay bonuses of various types to people who would like to perform the additional tasks. This grants the employees just as much right to apply for the job as the employer would grant to outsiders who answered an advertisement in the newspaper. One opening in the higher level may cause a succession of individual advancements as people each in turn move up. This is the procedure followed in most businesses and industries. A policy of upgrading from within requires that the persons hired have the aptitudes and potential for moving ahead to the next higher level jobs. The recruitment and selection problem is simplified because there are only a few entry jobs to recruit for and the formal education. Employees under consideration may be totally in the dark about the goings-on until the selection is formally announced. Sometimes this leads to the “Peter Principle” whereby one is promoted from their highest 49 . There is also the possibility that fully qualified potential candidates will be overlooked due to an oversight. skills and knowledge requirements for these entry-level jobs are relatively low. which do not involve a lot of additional work. it can also act as a training device for developing middle and top level managers. When planned properly. rate of pay.

the rate of labour turnover may be high. 50 . However. and screening to match the employer’s specification and demands and the abilities and needs of the job applicant. If the purported promotions for the overqualified persons recruited externally do not actually materialise. because demand is generally high and turnover is great. many top status people especially sales people don't look for employment through employment agencies. and so on. are construction. External recruitment will be limited to lower level positions and the new recruits may be overqualified for the lower level jobs. It is also probably wise to fill a moderate percentage of the higher-level managerial and professional positions by going to the outside labour market to inject new ideas to the organisation. EXTERNAL/ OUTSIDE SOURCES There are many sources of employees outside the organisation. Career Connections. and popular dance bands among others.  Labour unions This source of employees is used primarily in those occupations in which the employees are represented by trade unions. As a generalisation. they tend to perpetuate possibly outdated practices. Sheer Logic. An exclusive promotion from within policy prevents the infusion of new ideas and knowledge at upper levels. Some of the industries and occupations. It depends upon the management policy. Deloitte & Touché. testing. Many agencies do a careful job of interviewing. counselling. Federation of Kenya Employers (FKE). trade unions. Many agencies concentrate on whitecollar office and retail sales personnel.levels of competence to their highest levels of incompetence. Preferred Personnel. the most fruitful policy is that of filling the majority of vacancies from within but going to the outside when fully qualified talent is not available inside the organisation. When promoted to position of power and influence. This in effect may be referred to as organisational inbreeding. and a variety of advertising agencies. Subordinates having been taught and modelled by their bosses may not know other ways of doing things. consequently. these over qualified persons may be disappointed at their lack of progress. Hawkins & Associates. In Kenya employment agencies include "My jobs Eye”. the type of job involved. The principal sources and methods for recruiting manpower include:  Employment agencies These may be public or private. clothing. For a fee collected usually from the employee (after he/she is hired) but sometimes from the employer they help to meet employer requests for people from their files of job seekers who have registered with them. Manpower Services. which tend to obtain some or most of their labour force through unions. The particular sources and means by which workers are recruited vary greatly. the supply of labour relative to demand and the nature of the existing labour market institutions such as employment agencies. Price Waterhouse Coopers.

The employees would then pass the word to their friends and relatives who may be seeking work. those union members who have been unemployed for the longest time are given the first opportunity to fill the job opening. An organization which treats its employees well. At other times. Televisions. pays adequate wages. Likewise this 51 . it prevents the infusion of better blood by preventing a wider pool of applicants that would have applied if the position had been advertised. magazines. At other times prospective employees apply directly to the organisation in the hope that a vacancy exists or they can complete application forms and send them to the enterprise concerned. Employee recruiting may lead to nepotism whereby individuals hired are related to those already working in the organisation. However.Generally. for example. This is a widely used method of recruiting. and public notice boards among other places. radio. Federation of Kenyan Employers ( FKE). the applicants may get jobs else where before being engaged by the organisation. whites recommending whites only. It is used to obtain many manual workers and sales people. many employers are able to fill their labour needs largely by directly hiring at the gate. Sometimes it leads to racial imbalance through. An employee would not recommend grossly unqualified persons because he/she feels that these will reflect adversely upon his/her own reputation. Ideally those recommended are individuals who are likely to make an excellent contribution to the organisation.  Unsolicited applicants at the employment office For jobs requiring only routine abilities and skills. Examples of labour unions in Kenya include Central Organisation of Trade Unions (COTU).  Advertising Advertising can be done in newspapers. and which has enlightened personnel practices will easily attract potential employees. and Kenya National Union of Teachers (KNUT). The principal advantage of employee recruiting is that it is selective. Some organisations announce to their own employees that they wish to hire additional people possessing certain type of skills. Nevertheless. This ensures that unemployed workers will get jobs in their rightful turns. With some exceptions. recommenders may confuse friendship with job performance or competencies. This method is cheap and improves the image of the organisation. This method is inexpensive and very effective in finding candidates with specific skills quickly. Individuals often like to have their friends join them at their place of employment for social and economic reasons such as rides to and fro work yet the friend may lack job-related competences.  Employee recruiting It is also known as employee referrals or employee recommendations. employers who advertise for applicants should reveal their own identity rather than use a blind advertisement. Kenya Union of Post Primary Education Teachers( KUPPET). This is sound ethically because the employer also expects the candidates to supply detailed autobiographical information. professional society journals.

Care should be exercised when using this source. Examples are Institute of Certified Public Accountants of Kenya (ICPAK). and scientific institutes look after the interests of their members by allowing vacancy advertisements in their publications. Hardcore unemployed – General Motors used this approach at one time in Detroit City. engineering. USA.prevents the possibility of the employer’s own employees (those who are dissatisfied and seeking to make a change) unknowingly applying for a job at their own company. Such firms usually send their recruitment teams to the educational institutions to make presentations. Internet. Opportunities for networking are also afforded through conventions.a firm in the media industry may recruit from. and Universities) This recruitment practice tends to be utilised by large companies. Other Industries. New perspectives are then brought into the organization. Schools.through the Internet one is able to attract many recruits from different parts of the world. They quickly take advantage of opportunities for “greener pastures” unlike elderly employees whose rate of job mobility is lower. This occurs in situations where the firm has a poor reputation which may prevent it from getting applicants or where the firm’s reputation is so good that it will have numerous applicants. it avails a wide choice of applicants and there is some equity in using it. say. 52 . and universities avail intelligent and wise employees but sometimes they may lack the experience required. In some cases. This problem can be arrested by arranging for internships of students. firms hide their identity. Although this approach is costly. Colleges. the rate of labour turnover is very high especially among younger school or college leavers. the pharmaceutical industry. Schools. the firms invite prospective students to visit their plant where the final employment decision is usually made. Further.e.     Educational institutions ( i. colleges.  Competitors – this source of recruitment avails persons who are already used to the industry dynamics and who have their own customers with whom they may move.  Professional bodies Accounting. to prevent riots in the streets. In other cases. Nevertheless it can result to bad blood among the competitors.

and who are willing to consider new challenges and opportunities. Unattractive jobs or job descriptions. college papers. Government laws and regulations such as the Equal Employment Opportunity Act.  Consultants Recruitment consultants or placement agencies have a broad network base and are exposed to management in action. Internal organisational policies that mainly promote internal recruitment.      Advertising in newspapers. Among the more prominent advertising techniques are. can effectively adjust to the organisation. Some of the factors that may make the human resource manger not to recruit the best employees include:       Poor image of the organisation. sales and general administration type of works.  Temporary help services. SPECIAL PROBLEM OF PROFESSIONAL PERSONNEL AND MANAGERS Normally employers don't have difficulty in obtaining adequate employees for manual. Where the costs of recruitment are too high. They often offer a placement service to client companies. an advertisement is written with the specific person’s CV in mind. Head hunting Top professional people are hunted through specialised agencies. computer programming. Alternatively. Those hunted are highly effective executives who have the skills to do the job. the individual firm faced with the shortage of qualified talent must result to an aggressive recruitment campaign. In the short run. Pressure form the trade unions on who should be recruited. But they have a problem in obtaining the professional and managerial talent they require. library services. Factors that constrain the process of recruitment.certain organisations provide employees to meet short-term fluctuations in personnel needs in areas such as nursing. trade journals and professional journals College recruitment and contacts with university career offices Management consulting firms Executive recruiters and agencies (Head Hunters) Professional association meetings The long-term solution to this problem would be for organisations to invest more in training managerial talent. The persons are approached personally with an offer to fill a vacancy. secretarial among others. 53 . clerical.

age.SELECTION Once recruitment is done the candidates are selected. telephone number. which in many cases. duties and responsibilities  Military service Other Interests  Sports  Hobbies  Membership to societies/clubs Referees  Academic referees  Work related referees. tribe. 54 . languages spoken. Selection is a process whereby out of the many job applicants the best are taken to fill the vacancy. Past behaviours can be used as an indicator of future performance potentials and the length of service expected from the potential employee The accuracy of the information given in the application form may need to be ascertained. To assist the selection process the potential candidates fill in job application forms whose contests are: Personal Information This includes their name. and next of kin Educational Background  Schools passed through (primary and secondary)  Further and higher education institutions attended  Qualifications attained  Special training  Membership to professional bodies Employment History  Companies worked for  Dates of employment  Positions. This can be done by using reference checking and requiring the applicant to sign a statement confirming its accuracy and stating the potential effects of false information. which can be used as a starting point for the interview. is the aptitude test. The information gives an indication of an applicant’s suitability for a job. nationality. weight & height (body mass index). marital status. This form gives a common basis for drawing up a shortlist and provides a foundation of knowledge. address. gender. The information can also assist the post-interview decision making stage. date of birth. It is from the application forms that the first group of candidates will be shortlisted for the first interview.

some closed-ended questions may be inevitable. Secondly. The questions here range from introducing oneself to a brief history of oneself. the departmental management makes the final decision without consulting the human resource department. Consequently. The interviews can be administered by the human resource department alone or in conjunction with the departmental management. the personnel management and departmental management make the final choice. allow the candidate to talk to the interviewer and gain confidence. The anxiety may stem from a strong desire to get the job or from other reasons. date. CONDUCTING THE INTERVIEW When candidates come into the interview room many of them are anxious. To encourage candidates to talk about themselves and their experiences the following techniques can be used: 55 . questions early in the interview should be open-ended rather than closed ended. In some cases. visitors and so on. The panel of interviewers should be courteous and appear interested in what the applicant says. These include: One of the interviewers (preferably the departmental manager or even the human resource manager) should bring the candidate to the room. However. A very large room with a few people occupying it makes it lack the intimacy required for a free and natural discussion. In most cases. . Large desks or tables separating the parties increase their psychological differences. smoking. and discussing among themselves when the candidate is expressing himself or herself. all the people who will participate should be informed and the roles or questions they will ask determined in advance. Continuing in this vein of easy questions. even when it is not what they were expecting to hear. although not directly related to the job.THE INTERVIEW Most companies pass potential employees through several interviews depending on the requirements of the job. which if followed should reduce anxiety and establish rapport. Effective interviews can be held in the following setting: The room where it's held should be free from interruptions by colleagues. Yet in a few cases. or they may even touch on a recent happening that is causing concern in the town or in the country. rather than the candidate being sent for through a secretary or a junior administrator. the departmental management holds the initial interview. the conversation should be opened with a few easy to answer questions. which. There are a number of guidelines. INTERVIEW SETTING The human resource manager should prepare the interviewing panel by setting time. The personnel manager has the duty of reducing anxiety. telephone calls. Moreover. Open-ended questions allow the applicant scope for talking at some length on a particular topic. Interviewers should not engage in activities such as making phone calls. The interviewers must also be relaxed and friendly. and venue. less information may be acquired.

This should be used with care otherwise rapport may be lost. I see!. After the interview. additional tests (psychological tests. The organisation must develop techniques for selecting the right person from among the many applicants for the particular position. Thereafter. unsuccessful candidates are sent regret letters. Mmmh!"  Body language such as the interviewer sitting posture when it is upright and the candidate is being given attention. However. the interviewer should ask questions to find out why the statement was given. Mmmh!  Eye behaviour -narrowing of the eyes together with a slight nod of the head can convey the messages "Uh!. At the end of the interview. medical tests etc) may be required before the candidate is fully given the job. Use of Rewards . OTHER CONSIDERATIONS     The interviewer shouldn't talk too much The human resource manager should also sell the job to the candidate The interviewer must control the interview The interviewer should close the interview when sufficient information has been obtained. the interviewers explain when the decision will be made and how it will be communicated to the candidates. PRE-EMPLOYMENT TESTS Attracting qualified applicants for a job through the recruitment process is only the first step in the process of acquiring new employees.Where a candidate has given a statement.Interviewers should ask questions which are neutral and which don't elicit 'yes' or 'no' responses. I see!. he/she should be given time to explain it.The interviewer can summarize the points raised by the candidate in order to gain agreement before proceeding to the next point. In closing the interview.This involves repeating the last few words of the candidates’ last sentence in order to find out the reason for the answer that was given. Summarising. Use of Neutral Questions. Use of Probes/ Research. which is unclear. Successful candidates may be sent letters of job offer. bearing in mind that recruiting. selecting. It is essential that management should avoid employing a person who may well soon or later resign because the job he was selected for does not meet his/her expectations. the candidate may be asked to raise any questions which they may have.Play Back Technique. Use of Silence -It is used where the candidate has stated a point which is not clear. and training costs are 56 . the candidate is thanked and escorted out of the interview room.The interview can reward the candidate for their achievements by using:  Encouraging sounds such as Uh!.

training. Further. number of dependants. education. work experience and so on. To reduce staff turnover by not recruiting unsuitable employees. To help employers by providing them with objective data 5. The application form as a selection technique may also have elements of a formal selection test. formal tests can pre empty nepotism and favouritism in the selection of employees. Tests will also eliminate the prejudices and biases of the interviewer and selection panels. formal tests tend to continuously favour those who have had certain educational and familiar backgrounds given the very badly skewed distribution of educational and economic resources in the country. Thus the pre-employment test can be given for the following reasons: 1. marital status. To recruit the best candidate for the job. The main benefit of tests is that they may uncover qualifications and abilities that would not be discovered by the interview and application form. 57 . Characteristics of good tests A good test has the following characteristics:  It is a sensitive measuring instrument that discriminates well between subjects. There are various selection techniques used in Kenya such as the interviews and the application forms. Limit recruitment costs. The application forms main value is in recording information on the personal history of the applicant.necessarily high. 2. Among other things the application form records age. Tests can also be used on employees earmarked for transfer or promotion. To recruit those who are likely to be most productive 6. To minimise expensive mistakes in selection decisions.  It has been standardized on a representative and sizable sample of the population for which it is intended so that any individual’s score can be interpreted in relation to that of others. However. In Kenya. 3. there is normally a time lag between the time an employee leaves the firm and the time a qualified replacement is found. 4. The interview enables the person responsible for engaging new employees to view the total individual and so evaluate the person and his/her demeanour directly. An employment test is an instrument that is used to obtain information about personal characteristics. Tests have been used in an effort to find more objective means of measuring the qualifications and liabilities of potential employees.

It is valid in the sense that it measures the characteristic which the test intended to measure.  It is reliable in the sense that it always measures the same thing. Aptitude Tests These measure the general intellectual ability of a person. It is a useful way of measuring a person’s mechanical aptitudes. A test intended to measure intelligence should measure intelligence and not simply verbal facility. The main types of aptitude tests are the:  mechanical reasoning tests  numerical reasoning tests  abstract reasoning tests  spatial relations tests  verbal reasoning tests  language usage tests  Spelling tests. 58 . A test aimed at measuring intelligence should measure the same characteristic when applied to different people at the same or at different times. Type of tests The main types of tests are:  Aptitude tests  Personality tests  Psychometric tests  Skills tests  Work sample tests  Work styles or traits tests  Specific knowledge tests  Medical tests Some of the tests are briefly discussed below. The mechanical reasoning tests measure ones ability to understand the underlying principles behind machines. or to the same person at different times. High scores in these tests indicate proficiency in engineering and mechanical work. 1. The test is concerned with whether one can reason through mechanical problems in a logical way.

--------. insurance. banking. 0. Abstract reasoning tests measure the ability of someone to reason with visual configurations. They are combined with mechanical reasoning tests and applied to people wishing to pursue technological and scientific careers. Spelling tests are important for school or college work and for many other jobs such as accounting. banking. Typical questions would include calculation of measures of central tendency or measures of dispersion or even the comparison of performance of several firms over a given period of time. 1. and positions of objects when shown only a picture or pattern. b) A car travels 40 metres in 0.8. teaching. They are particularly useful for careers such as law. Poor spellings are not necessarily an indicator of poor levels of education. psychology. It is a measure of how well one can distinguish between correct and incorrect grammar. If it continues at the same speed. design. and computerisation (such as Computer Aided Designs). and so on followed by statements. multiply. The spatial relations tests are probably the most difficult aptitude tests. It is the ability to comprehend verbal concepts or ideas and see the relationships between them. and the engineering disciplines.Numerical ability tests measure the ability of a person to add. These tests are useful in careers such as accounting. or choose among the given choices. 2. Examples would be: a) What number comes next in the following sequence? 16.25. and journalism. draughting. punctuation. 59 . ------. subtract. 4.5. These tests are useful for careers such as writing. insurance. graphs. personnel. They are a non-verbal measure of reasoning ability and are useful in architecture. and wording of sentences. Language usage tests are to measure the ability to communicate in good. A person is asked to indicate whether the statements are true or false.2 seconds. accurate grammatical English. and different types of management. and engineering. how many kilometres will it have covered in 6 hours? The information in numerical tests is usually presented in texts. and divide. the size. Questions here would contain patterns and series to be completed. Space relations involves the ability to visualise and think in three dimensions or picture mentally the shape. charts. Other issues may also be tested. 0. Verbal reasoning refers to the ability of a person to reason logically in verbal terms.

as a leader or as a follower. Work sample tests The candidate is asked to produce a sample of their work. skills tests These are job specific and tests ones ability to perform a relevant task. Some individuals like to be praised while others prefer freedom. Work styles or traits tests These are intended to find out how one likes to work. ability. dominance. sensate or intuitive. there are no right and wrong answers. and achievement. Psychometric tests A psychometric test is a way of assessing a person’s ability or personality in a measured and structured way. 6. The main psychometric tests are personality. tuberculosis. Some of the diseases for which potential job seekers may need to be diagnosed include HIV/AIDS. etc. and interest tests.2. or choosing the response from a number of choices. and epilepsy among others. asthma. simulation. These are to identify the candidates’ personality types. 7. Personality concepts of importance to the human resource manager include whether one is an extrovert or introvert. 4. These tests are administered through a series of questions to be answered with a yes or no. An individual can like working alone or with others. 3. 8. In these tests.such as knowledge of sports. other aspects of personality tests are stress. Medical tests The aim of medical tests are to determine any major medical conditions of the potential workers that may affect their performance. Personality tests These tests are designed to reveal the candidates personal characteristics and the way candidates may interact with others. thinking or feelings led. A typist may be asked to type some work. A typing test is a skills test just like headline writing. novelty. thereby giving a measure of leadership potential. Discrimination based on 60 . Specific knowledge tests These tests measure how much one knows of a particular subject. 5.

the work unit in which he or she will be working. tuberculosis. and behavioural patterns. Reference checks These are conducted after the employment interview to find out more about an applicant’s employment record. the human resource manager takes them to the departmental head and the employee is taken round the organisation and introduced to the different departments. offices and so on. asthma. Through induction the new comer will feel at ease much quickly. The person providing the reference must be capable of assessing the candidate’s performance and he or she must be prepared to express his or her forthright opinion. education and training. References are most useful if the person providing the reference has observed the candidate in a relevant situation. 61 . Through reference checking. Induction introduces the new employee to the organisation.medical condition may be illegal unless the condition will affect the performance of the individual. Referees have no legal obligation to provide positive feedback on a person. It is strongly recommended that one chooses referees who know him/her very well and who can give accurate information. Discrimination based on medical condition may be illegal unless the condition will affect the performance of the individual. when and to who the candidate is to report. facilities. INDUCTION AND PLACEMENT Induction is the socialisation or orientation programme aimed at gradually introducing the new employee to the organisation. and epilepsy among others. Some of the diseases for which potential job seekers may need to be diagnosed include HIV/AIDS. The organisation receives a verbal report on an individual'’ performance. the particular work and the people and things which he or she will be working with. The referees may also be educators who had the opportunity to interact with the person in a classroom setting. the person must express himself or herself in such a way that his or her opinion is not misinterpreted. Moreover. achievements and failures of individually. input is obtained from a number of people and there is useful feedback on the strengths and weaknesses. The length of time taken on the induction exercise will depend on the size and complexity of the organization as well as on the level in the organization at which the employee is entering among other factors. The letter of job offer specifies where. Once they report to the human resource office.

Restaurant facilities.  It reduces the time taken by the new person to familiarise themselves with their work and to know how their work relates to other functions in the organisation  It enables the firm to socialise its management trainees  It enables the employee to gain confidence and perform their duties effectively and efficiently Some of the details covered in induction include:                 A brief history of the organisation Conditions of employment and benefits Remuneration policy. Social responsibility policy.  It ensures the new employee is familiar with the operations.Induction is important because:  It gives a positive first impression of the organisation. Disciplinary code and procedure Grievance procedure Relationships between the employer and other organisations. Training and development policy & facilities. Once the employee is inducted they are then placed into their workstations. departments and procedures in the organisation. Issues relating to confidentiality of certain company information. 62 . Work rules and standard procedures. Medical and first and infrastructure. Community involvement policy. Trade union related matters. Employee wellness policy. It helps the new employee to understand what goes on in the firm and what is expected of them.

knowledge. selecting. their attitudes towards their work. attitudes. and/or social behaviour. Definition of Training Training consists of planned programs designed to improve performance at the individual. Chapter objectives At the end of this chapter one should be able to understand and appreciate:  The principles of learning and how they relate to training.Ch. all employees require some element of training. and inducting an employee are not an end in themselves. employee development is a broad term which relates to training. training employees provides them with specific. The main aim is to improve employees’ skills. or social behaviour.  The process of designing effective management development programs. 63 . Ideally training is job related learning that employers provide to their employees. in turn. In fact. implies that there are measurable changes in knowledge. 2000). attitudes. The employee must be trained and developed to fit into the organization. and/or organisational levels. education. Training seeks a relatively permanent change in an individual which change will improve his/her ability to perform on the job. Improved performance. and other intentional or non intentional learning and which refers to general growth through learning. or their interactions with their co-workers and their supervisors. group. Training is a learning process whereby people acquire skills or knowledge to aid in the achievement of goals.  Training programs for non-managers that are designed to develop their skills to perform jobs. In a limited sense.  Programs designed to improve organizational units as entities. skills. It can involve changing what employees know.  The training process for employees. knowledge and attitudes so that they can perform their duties according to set standards.  The major differences between pedagogy and andragogy. identifiable knowledge and skills for use on their present jobs. Development is broader than training in that the individuals gain new knowledge and skills useful for both present and future jobs ( Mathis $ Jackson. 8: EMPLOYEE TRAINING. INTRODUCTION Recruiting. how they work.  Training and educational programs for executives which enable them to develop the ability to manage. Training typically involves the changing of skills. In contrast to training (which is job related) and education (which is the preparation of an employee for a different job).

When individuals obtain feedback on their performance. Feedback. responsibility. 2. reduced costs and better quality goods and services all of which enable an organization to achieve greater stability. the performer. People are more willing to learn when the material is important to them and will help them to achieve the goals they have set for themselves. promotion or demotion.  Older employees need refresher training to enable them keep abreast of changing techniques and the use of sophisticated tools and equipment. Some of the goals that may encourage intention to learn in certain people include the desire for achievement.  Training enables people to work effectively with minimum supervision. Immediate feedback can come from observers. is best when it is immediate rather than delayed. status. Feedback. TRAINING AND LEARNING In order to understand what training techniques can do to improve an employee's job performance it is necessary to understand the concept of learning. Learning is enhanced when the learner is motivated. the learner will exert a high level of effort. If they perceive the organization as not supportive then they will not be motivated to learn. An individual must want to learn. the easier it is for them to correct their erroneous actions. heightened morale. Ideally learning is the process of knowing what was previously not known. fear of failure. or the task itself. creativity. PRINCIPLES OF LEARNING 1. co-workers influence. 64 . or knowledge of results. and a variety of other reasons. When the desire exists.  Training is necessary when a person has to move from one job to another because of transfers. is necessary so that the learner can correct his/her mistakes. Further. authority.Reasons for training Training is necessary for the following reasons:  Employment of inexperienced and new labour requires detailed instructions for effective performance on the job. reduced spoilage of materials. the task becomes more intrinsically interesting and acts to motivate them. It also reduces work related accidents. low wastage. recognition.  Training leads to increased productivity. The sooner individuals have some knowledge of how well they are performing. trainees must perceive the organisation and their immediate work environment as supporting participation in training and using what has been learned. advancement. or knowledge of results. curiosity.  Increasing use of fast changing techniques in production and other operations requires training in newer methods of operation. Learning requires feedback. comprehension.

or seen. When learners actually practice what they have read. Active involvement through practice must be made part of the learning process. and then levels off. Punishment (negative reinforcement) tells learners that they are doing something wrong. Practice increases a learner's performance. positive reinforcement encourages learning. Positive transfer occurs when job performance is improved as 65 . Time 6. When workers are verbally praised upon properly performing a task. Common learning curve. The rate of learning can be expressed as a curve that usually begins with a sharp rise. it encourages learning and they are likely to continue doing the task in that way. Thus. and then increases at a decreasing rate until a plateau is reached. 4.3. they gain confidence and are less likely to make errors or to forget what they have learned. Amoun t of learnin g. they will even be motivated to strive toward performing better work. Transfer of learning. Learning curves. Learning takes place very fast at the beginning. Reinforcement can be positive (to encouraged or sustain a desired behaviour) or it can be negative (to suppress unwanted behaviour). but then levels off as opportunities for improvement are reduced. Reinforcement increases an individual’s likelihood of repeating a learned behaviour. Anyone learning a new skill or acquiring factual knowledge must have an opportunity to practice what he/she is learning. heard. Learning begins rapidly. 5. Transfer refers to the extent to which competencies learned in training can be applied on the job.

Customer care experts who are expected to work with angry. The principle of identical elements suggests that the more similar the training and the performance situations are in terms of the stimuli present and the responses required. Near transfer occurs when the material learned can be directly applied on the job with little adjustment or modification. The similarity can be in terms of physical elements such as equipment. Zero transfer occurs when there is no change in job performance as a result of the training. Split the material into meaningful chunks rather than presenting it all at once. Label or identify important features of the task. Trainees can absorb only a limited amount of information at a time. This is because some are slow learners while others are fast learners. Examples are the "starter switch" or the “stop switch”. 7. 9. the more likely it is that training transfer will occur. Andragogy is based on four assumptions about differences between adults and children:  Adults are self directed  Adults have acquired a large amount of knowledge and experience that can be tapped as a resource for learning 66 . Pedagogy is the process of educating children and teenagers through high school while andragogy is adult oriented learning. 10. Otherwise the material must be broken down into reasonable chunks and presented at different times. it can also be psychological. while far transfer occurs where the material learned must be modified or expanded upon before it is used. Negative transfer occurs when job performance is worse as a result of the training. Trainees learn best when they learn at their pace. then the familiar terms and concepts should precede them. An example is learning how to operate a power saw. Maximise the similarity between the training situation and the work situation. 11.a result of the training. tasks. In situations where the subtasks learned are relatively easy to perform and are inter-related. Where new concepts and terms are to be used. impatient customers should practice with role models of such customers. Try to use terms and concepts that are already familiar to trainees. TRAINING ADULT AND OLDER WORKERS The ageing population in many countries implies the need to train elderly workers. all the material can be learned at once. 8. The use of jargons and unfamiliar terms should be discouraged. Where the training relates to the use of machines then important operations must be labelled. and surroundings.

Tend to be idealistic Tend to be practical Have a restricted world view Have considerable knowledge to bring to training. and they expect to immediately apply what they learn to these problems and needs. Have few specific expectations They have preconceived expectations about the training. Raise few questions since they have few real world experiences to draw from. Young learners ( pedagogy) They need motivation since they may not be sure why they are in training. Their major focus is on grades Adult learners ( andragogy). 67 . Concerned with immediate problems and their solutions Primarily concerned in content and its relevance to career and personal life. Highly motivated and want to learn. Low tolerance for bureaucracy Want to participate. Likely to accept the information they Can and will verify the information are given. Want to know the “answer” and tend Look at problems as having several to see things in one way possible alternatives worth evaluating Impatient and want things to happen Have patience with the world and “overnight”. They have developed a tolerance for bureaucracy. Raise many questions as they try to connect class material with real life experiences. Future oriented since they expect to apply the material learned in the future. Adults are motivated to learn in order to solve problems or address needs. understand that change takes time. given in the training. Table 3: Differences between pedagogy and andragogy.  Adults show a greater readiness to learn tasks that are relevant to the roles they have assumed in life. Other differences between adult learners and the younger learners (mainly those learners who are below the age of majority) are summarised in the table below. Resist participation and expect to be told what to do and when to do it.

f. d. In order to know what to train workers on. A rise in the number of accidents reported. Select the training methods and Conduct the training Evaluate the training 1. Nevertheless. More grievances reported. it should be known that employees might not excel in their performance because of other reasons such as:  Low managerial authority  Ambiguous job descriptions  Red tape  Haphazard personnel management activities  Low motivation. Fig 1: The training and development process. and the conditions which are necessary for ensuring that training or development will be practically useful to the organisation. morale and job description. Changes imposed on the employees as a result of job redesigns or a technological breakthrough. Training committee observations. A high reject rate. it is necessary to carry out a Training Needs Analysis. TRAINING NEEDS ANALYSIS: a. Greater than usual scrape or wastage of materials. The training needs analysis finds out what training or development employees actually need and want to acquire.THE TRAINING AND DEVELOPMENT PROCESS The process of training and developing employees can be shown in a simple diagram as below. i. Complaints from customers. e. b. c. To know that employees need training the manager can get a clue from: a. h. Decreased productivity. 68 . Equipment utilization figures. Conduct a training needs analysis Establish the training objectives. g.

 Incorrect assumptions are made that a needs assessment is unnecessary because available information already specifies what an organisation’s needs are. Competence refers to the ability to do certain jobs while performance is the achievement of practical results in a work situation. An example would be improved productivity of the workers. For training to be conducted there has to be a performance gap between the desired or optimum level of performance and the actual or real level of performance. It is also done at the task level to determine what must be done to perform the jobs more effectively. Interviews with incumbents.Some of the methods used for assessing training needs include: 1. questionnaires 9. supervisors and clients. 69 . acquire.  Some of the trainees may resist the needs assessment exercise because of the benefits they get from their current positions or where they don’t trust their supervisors. Analysis of job requirements 4. diaries 10. ESTABLISH TRAINING GOALS Management must explicitly state what changes or results are sought from each employee. These goals should be tangible. At the personal level needs assessment helps us to know who should be trained and the kind of training they need. and deliver the training rather than to do the preliminary activities. verifiable. time consuming process. Surveys.  There may be lack of support from the top management. and measurable (as far as this is possible). Needs assessment should be done at the organisational level to determine where training is needed and in what conditions the training will be conducted. reports. 7. 13. This is sometimes the case in public service positions. Work planning and review systems. Collection of critical incidents. Assessment centres. and inventories of current employees 6. 2. Observation and analysis of performance 2. Consideration of current and projected changes 5. 8. They should be clear to both management and the employee. The clarity of goals is influenced by how they are communicated. Some organisations do not conduct a training needs assessment because of reasons such as:  The needs assessment exercise can be a difficult.  Managers may decide to use the limited resources available to develop. Delphi technique. 12. The goals should be in line with the problems that gave rise to the training. Managers should be able to differentiate between competence and performance. coaching 11. Management and staff conferences and recommendations 3. The objectives should be written down as concisely as possible using a language that can be easily understood by all the interested parties.

delivery method.when the firm lacks the knowledge. The employee is physically in the work environment and appears to be immediately productive. This is known in some industries as “Sitting with Nelly” implying 70 . off the job or self paced. and timing of each activity among others are discussed. 3.where there are many trainees then it may be more cost effective to offer the training using the firm’s personnel. experience.sometimes it is timelier to hire outsiders to undertake the training. to reduce the rate of wastage or scrappage or even to reduce customer complaints.in cases where the subject matter is sensitive. sequence of the activities.these include personal contacts or past experiences with an outside vendor. This decision is made considering the following factors. b) Timelines. SELECTING THE TRAINING METHOD: Appropriate training methods should be able to:  Motivate the employees to improve their performance  Explicitly illustrate the skills desired by the employee  Make employees to participate effectively in their work assignments  Provide the trainee with the opportunity to apply the skills in the practical work situation. credentials. It is learning while doing. a. e) Cost. g) Other factors. It is also necessary to select the trainer(s) and train them before they embark on the training. Each external party wishing to provide the training would need to be evaluated in terms of their cost. c) Number of trainees. f) Size of the human resource department.  Provide immediate feedback on employee performance during training. local economic conditions. topics they wish to cover. background. then the firm’s employees become the trainers. Lesson plans should be prepared in which issues such as topics to be covered. d) Subject matter. and expected results among other factors.smaller departments may lack the capacity to train employees. a) Expertise. On The Job Training (OJT): This is one of the widely used methods of training. and experience to design and implement a training program. skills. then it must rely on external parties. Human resource managers must make the decision as to whether the training will be provided by the firm’s staff or by external parties. and the presence of the government incentives to conduct training. geographical proximity to the vendor.this factor should be considered together with the other factors.Examples of training objectives would be to increase the productivity of the firm within one year. CLASSIFICATION OF TRAINING METHODS Training methods can be classified as either on the job.

that one person sits under another in order for the learner to learn from the experienced person. Coaching. Coaching focuses on skills and is 71 .  Much of the learning takes place naturally as part of the performance management process and through day to day contacts. The teaching is individualized and one learns by doing.it enables a new recruit to become productive as quickly as possible.  The goods and services of the firm.  Internal working and policies of the business. Sometimes. The length of induction training will vary from job to job and will depend on the complexity of the job. Induction training. 2.here experienced managers guide the actions of less experienced managers to help them develop their service delivery. it tends to propagate the ideas of current managers and some of the ideas may not be progressive. The disadvantages of On the Job Training include:  Low productivity while employees develop their skills  Costly errors made by the trainees while they learn  The effectiveness of the learning is strongly influenced by the quality of the guidance and coaching provided on the job. Nevertheless. the size of the business and the level or position of the job within the business. Many managers and team leaders are unskilled at training and may not carry it out or encourage it. coaches are hired from outside the organisation. On the Job Training methods include: 1.  The environment may distract the instructions.  Employees are assimilated more quickly into the organisation. The superior may also neglect the person being coached in terms of time and of the quality of teaching efforts. The following areas may be included in induction training:  Duties of the job. and it is often true that a young manager will learn more from senior colleagues than from any other source or formal learning intervention.  Information concerning the layout of the premises. Theory is put into practice immediately and its relevance is obvious. but increasingly some organisations expect all line managers to operate as coaches.  The history of the firm including the former and current leadership regimes.  Values and aims of the business.  The employees are more motivated because they know that what they are learning is relevant to their job. It is one of the most effective training techniques.  How to meet new challenges. This method provides immediate feedback on performance.  The costs of a full time trainer and training facilities is eliminated. Advantages of On the Job Training  The transfer of training to the job is maximised.

It is used for skilled trades such as plumbing. The aim is to broaden the knowledge. and outlook of trainees although it can be used to stimulate new ideas and to kill boredom for new or experienced employees. Informal relationships develop on their own between partners. Formal mentoring. helping the employee learn the job. During this period. and methods. all for small periods of time. There are two types of mentoring relationships: formal and informal. Nevertheless. Apprenticeship programs – this is the oldest training method commonly found in industrial organisations. A similar method of high-potential mentoring is to place the employee in a series of jobs in different areas of an organization. who is responsible for orienting. At higher levels of the organisation it can be used to develop managerial generalists by exposing them to different operations. culture. and evaluating the trainee. Here the employee is paired with a senior level leader (or leaders) for a series of career-coaching interactions. iron working and carpentry. mentoring is used to groom up-and-coming employees deemed to have the potential to move up into leadership roles. employees are prepared to assume greater responsibility in the higher levels. A major part of the training time is spent on the job doing productive work and assignments.a senior manager is paired with a more junior employee for the purpose of giving support. 5. The apprentice works alongside and under the supervision of a skilled supervisor for a particular duration of time. often associated with organizational mentoring programs designed to promote employee development. Through job rotation. 72 . 3. In other cases. A mentor does not have to be a manager or supervisor to facilitate the process. in anticipation of learning the organization's structure. It may take a period ranging from four months to two years. the trainee is supervised by a department employee. on the other hand.different from counselling which is about helping people with personal concerns such as motivation and self-confidence. 4. and preparing the employee for increasing responsibility. mechanics. electronics. It can also eventually produce a number of employees with limited job knowledge. it can de-motivate intelligent and aggressive employees who seek specific responsibilities. usually a supervisor. Mentoring. refers to assigned relationships. Job rotation. skills. Mentoring actually refers to a developmental relationship between a more experienced mentor and a less experienced partner referred to as a mentee or protégé. training.it is also called position rotation and involves training by periodically assigning employees to alternative jobs or tasks on some planned basis or a rotation schedule.

job rotation . explain. transfer. Experienced managers may also participate in the committees.it is where a number of junior executives are assigned to committees. Project assignment. The young executives learn decision-making skills and the board of directors receives the collective wisdom of the team. Give feedback on performance. Further. Have them explain the steps. The project team studies the problem and finds the appropriate solution. allows him or her to participate in decision-making. is tightly linked with succession planning . 9. The manager discusses with the understudy about problems. Committee assignments. and place the employee in the correct psychological position. Put the trainees at ease. by telling them about the job and overcoming their uncertainties.this is where a number of executive trainees are put together to work on a particular project related to their functional areas. find out what he or she knows.understudy arrangement while coaching is only periodic. Gradually reduce the training. Through discussions in the committees they get acquainted with different viewpoints and alternative methods of problem solving. giving essential information in a clear manner.At the senior management levels. retirement. 10. Here the goal is to provide learning experiences which facilitate changes in thinking and perspective equivalent to the "horizon" of the level of the succession planning. with a designated resource person to call upon should they need assistance. or death. and attend executive meetings on behalf of the manager. study leave. and successes or failures of the committees. Reinforce the correct behaviour. Understudy assignments. promotion. negotiations. In this way the understudy will be able to replace the manager during absences caused by illnesses. Presenting the instructions. Sometimes. set up the task b.understudying is similar to coaching but it is a full time mentor.developing a pool of people capable of stepping into an existing job.this method provides a junior board of young executives that analyses the major problems and makes recommendations to the Board of Directors. Thereafter.this is placing the workers into the job on their own. Practice.consists of 4 basic steps: a. 8. and demonstrate the operations or procedures involved in performing the job. the understudy cannot move into the position until it is vacated and he or she may learn inappropriate skills from the supervisor. the interpersonal processes. 7. c. Multiple management. Encourage questioning and check on their performance periodically. Preparing the trainees. Job instruction Training (JIT) . managers may feel threatened by understudies and may not assist them as they should.it involves having the trainees try out the job to demonstrate their understanding.frequently referred to as management rotation. The role of the trainer would be to observe the proceedings. They also learn interpersonal skills. for example. 6. Follow up. show. assigns him or her duties. Vacancies 73 . The understudy works with the mentor on a daily basis to learn how the job is done. d. Tell. arouse interest.

Kenya Railways Corporation ( Railway Training Institute). The main methods used to conduct off the job training include the following: 1. The aim is to provide specific job skills with theoretical training taking place in the classroom and practical work being done in the production line. 2. or methods. 5. procedures.these present an in-depth description of a particular problem that an employee might encounter on the job. theories and problem solving skills. In fact. Kenya Power and Lighting Company. Case studies. concepts.the participants are sent to attend formalised organised talks by instructors or experts on specific topics useful to develop philosophy. They are also provided with professional knowledge on various topics from expert resource persons. Feedback and active involvement of trainees must be encouraged.it involves sending the employees to attend and participate in professional conferences where mutual professional plans are developed.it is a situation whereby an expert provides training in a classroom with the help of machines and equipment identical to those in use at the place of work. The conference method. Audiovisual media – films can be purchased from standard film distributors or produced internally by the organisation. 4. attitudes. The purposes of a case study are to: 74 . and Kenya Breweries Limited. the training is organized to take place in an institution some distance away from the firm. Vestibule school. Telkom Kenya ( Kenya College Of Telecommunications Technolgy. The beauty with off the job training is that it enables employees to break the monotony of being in the organization every day. b. and decide the course of action that would be most satisfactory. it is also an opportunity to visit places that were not initially known. The employee attempts to find and analyse the problem. Video shows demonstrating excellent performance can also be shown. In many cases. who have received considerable exposure to the problems and issues dealt with by the senior board of directors. It can be supplemented with audiovisuals or demonstrations. evaluate alternative courses of action. they can provide information and explicitly demonstrate skills that are not easily presented by other techniques. talks and discussions.in the senior board of directors can be filled from the junior board members. Mbagathi). 3. Off The Job Training Off the job training is offered outside the firm. Some of the organisations in Kenya that have successfully used this approach include Kenya Ports Authority ( Bandari college). 6. Seminar or team discussion workshops. Classroom Lectures.participants are sent for seminars or workshops in various skills or professional courses where they learn through discussing a paper written by one of the trainees. This is the best means for conveying specific information such as rules.

In tray exercises. marketing. These include the works of Kirk Patricks (1994).  Which participants benefited most from the training. it is necessary to evaluate the participants. requests. Galvins CIPP (1983). Kirk Patrick’s model is easy to understand and to use. Kraiger.    Show trainees that there is usually no easy solution to complex organisational problems. According to Kirkpatrick (1994) training programs can be evaluated by measuring changes at four levels as discussed below. and Philips (1996). Afterwards the trainee is corrected by the trainer and by other trainees. human resource and so on. Make trainees realise that different perspectives and solutions to the same case may be equally valid. Ford. a salesperson. Self paced method of training. say. so that they can make sense of the paperwork by applying appropriate management skills within a limited time. 9. The aim of the evaluation is to determine:  Whether the program achieved its objectives or it failed  The strengths and weaknesses of the program  The cost-benefit ratio of the program  Who should participate in future training programs. Help managerial trainees develop their problem solving skills. memoranda. & Salas (1993). This can be achieved through studying manuals or work books. c. The same can be done either locally or abroad depending on the organisations training policies and availability of funds. The aim is to find out how someone reacts when they are under pressure and how they go about solving the many problems that are the source of the pressure. 75 .the managers are given a “basketful” or assortment of invoices. Role playing: Learning takes place by letting the trainee assume the role of. It is learning by acting.  How future programs shall be marketed. Examples are the undergraduate or postgraduate degrees. There are many models that have been designed to explain the evaluation of training programs. It is also possible for employees to train themselves. using non classroom computer based methods. 4. advanced professional courses in Finance. Special training programs. This method realizes that employees learn at different rates. and such like data in respect to a particular organisation. 7.certain employees may be taken for further professional or educational studies to improve their competencies. EVALUATING THE TRAINING PROGRAM: After a training exposure. and accessing information from the internet/intranet among other methods. Brinkerhoff (1987). Demonstrate that business problems are multifaceted and they can only be solved by borrowing from different disciplines. 8. Holton (1996).

ideas. Since the experiment is only done on the experimental group. more profitability among other evaluations. Ethical issues in training & development evaluation Some of the ethical issues that should be considered when evaluating the training programs include:  Confidentiality – wherever possible. peers. but unpopular programmes may be cancelled due to lack of interest. The assessment can be done by using paper and pencil tests. they should know what they are expected to do and the potential hazards and benefits of participating in the study. This can be done by using code numbers rather than names. it is not possible to establish whether the program achieved its objectives.e. 3. performance tests and examinations. or clients of the trained employees. Informed consent. steps should be taken to ensure the confidentiality of the information collected. If trainees enjoyed a programme it does not imply that the programme was very useful to the organisation. reject rates. reduction in turnover. Alternatively the evaluation can be done on a continuous basis by using tests or quizzes. Withholding training. At this stage. Behaviour ratings can be collected from the superiors.participants should be aware that they are participating in a study. customer complaints. the concepts. Reaction level– it is the most basic level of evaluation. the control group may raise issues especially where the training is believed to improve the performance of employees leading to organizational benefits such as promotion and pay 76   . Learning level – it measures the extent to which the trainee or participant learnt and retained the material (i. This level measures how well the participants liked or disliked the training program. and reporting group rather than individual results among other methods. At this level of evaluation. It measures the extent to which the training produces cost-related behavioural outcomes such as productivity or quality improvements. This is done by evaluating the skills or knowledge gained at the end of the program. Behaviourial level– ideally. whether it was worth the time and whether it was presented in a meaningful and interesting manner. 4. meeting the production quotas. Moreover. labour turnover. The trainees should be informed in advance about this assessment so as to increase their alertness and retention. 2. collecting only the necessary demographic information. Reaction can be obtained by having the participants complete a questionnaire or participant evaluation form. Results – this is the ultimate value of training. the concern is whether the modified behaviour causes positive results such as better reaction to customer complaints. accidents.1. subordinates.experimental research designs usually involve a control group and an experimental group. scrappage costs. and principles) and intellectually assimilated it. training is supposed to modify the behaviour of employees towards a given direction.

rises. Nevertheless the use of deception should be discouraged because it may lead to distrust of the party that deceived the others.  77 .training and development professionals may be under pressure to produce positive results so as to justify their activities. or setting up biased studies. an example is in health related programs. reporting partial results. the trainees should be informed as soon as possible after the exercise. In situations where deception must be used. Pressure to produce positive results. In other cases the training could increase the physical well-being of the employees.sometimes researchers feel that better results will be produced when the employees don’t realize that they are in an evaluation study.  Use of deception. or if they are given some false or misleading information during the study. There is often the possibility of doctoring results.

changing attitudes.  Explain the procedure involved in management development. conceptual and specialised skills. They are able to think and understand problems facing the organizations that they manage. Following the completion of this chapter. 1950s -1980s 78 . 9: MANAGEMENT DEVELOPMENT Chapter objectives. telling workers what to do.  Discuss the importance of designing an effective management development program.Ch. History of Management Development Early 1900’s Organisations developed managers by recognizing an individual’s strong occupational knowledge about the organisation’s products and services. Education means that management development activities attempt to instil sound reasoning processes . Such individuals often had little training on supervisory skills. 2006). and more concerned with education than employee training. a cadre of managers with the skills necessary to function effectively in that organization (Warner & DeSimone. Armstrong (2006) says that management development is the process through which managers learn. The individual was promoted to a first-level position that included work direction i.  Understand the historical development of the field of management development. It therefore focuses more on the employee's personal growth. or increasing skills. Management development is thus any attempt to improve current or future managerial performance by imparting knowledge. Definition of terms: Management development is more future oriented. improve their skills in their present roles and prepares them for greater responsibilities in the future. in the hope of producing. human. Successful managers have analytical. Management development is an organisation’s conscious effort to provide its managers (and potential managers) with opportunities to learn. over the long term.e.to enhance one's ability to understand and interpret knowledge. you should be able to:  Define management development and differentiate it from employee training. grow. and change.

and so on. Today’s managers require a wider range of skills than ever before. The life of an individual is finite but organizations are assumed to have an undefined lifespan. Management schools or programs now cover a wide range of management topics. Firms set objectives in the areas of sales. finances.Management training focused on covering certain standard topics or types of activities in the organisation such as planning. 1990s onwards With the Human Relations movement. Management development should be linked to the organisation’s strategy and structure for accomplishing its goals. Specify the organisation’s objectives. These include:     Ability to manage people and systems Ability to work in cross-cultural settings. new product development. Probably the main reason for management development is that. Management development prepares internal managers for their new or prospective jobs. There was no integrated approach to train the managers on all facets of management concurrently. THE MANAGEMENT DEVELOPMENT PROCESS The Management Development Process is carried out through 6 stages as shown below. working with teams Being able to develop relationships. It also helps to socialise management trainees by developing in them the right values and attitudes for working in the firm. Importance of Management Development Management development contributes to the success of the organisation by ensuring that the organisation has the managers it requires to meet its present and future needs. expansion into foreign markets and so on. This can be done by ensuring that business issues drive management development. sales. Only managers with the right attitudes can steer an organization to greater heights. organising. focusing on customers and building partnerships Being able to draw the right balance between technical and “soft” skills. promotion from within is a major source of management talent. 79 . profitability. training programs recognised the need to cultivate supervisory skills. return on investments. in many organizations. Objectives tell us where the organisation is going and provides a framework from which managerial needs can be determined. They also incorporate real-world activities as part of the training program. Management development facilitates organisational continuity by preparing employees and current managers to smoothly assume higher-level positions.

Behaviour modelling. memoranda. programs must be uniquely tailored to the strengths and weaknesses of the individual manager. Carry out an appraisal of current management resources.these are also used to train employees and involve giving the managers a “basketful” or assortment of invoices. This can be achieved by use performance assessment tools such as the 360-degree appraisals. Business games. and such like data in respect to a particular organisation. Assess the types of development programs that can meet these needs. requests. The aim of assessment is to determine the existing competences of managers and identify the gaps. job knowledge skills. general knowledge and specific individual skills. 5.2.   Interpersonal skills. 3.it is observing the behaviours of other successful managers and emulating it. or even knowledge acquisition. Ascertaining the development activities necessary to ensure the organisation has adequate managerial talent to fulfil future managerial needs 4. Determine individual development needs –the emphasis can be skill development. Instead. interpersonal skills. Most management development centres focus on the changing of attitudes and the acquisition of knowledge in specific areas. analyse the relevant issues and come up with an optimum means towards solution of the problem. Case studies.the trainee plays a part in a simulated problem situation where he or she interacts with others who may be subordinates or co-ordinates. most management programs are to enable the managers to improve on their decision-making skills.these are simulations in which teams of individuals compete against each other or against an environment to achieve given objectives. This is because no development program can be adequate for all managers. According to Flippo (1984:206) and Okumbe (2001:90). 80 . Methods of improving interpersonal skills include:   Role playing.from each case the trainee is required to identify the problem. changing attitudes. Decision making skills. These can be improved through the use of:  In basket exercises. so that they can make sense of the paperwork by applying appropriate management skills within a limited time. The aim is to develop the need for team work.

It is therefore better if that process can be structured. as well as the e-learning approaches.the basic goal of sensitivity training is to increase managerial sensitivity and respect for others and their contributions no matter their positions. non-executive directorships . c) Secondments Taking a role in another organization through secondments for a year or two .is another way of broadening experience. in the case of senior people. mentoring. Work-based methods These include Coaching.based. and job rotation. Other work based methods include a) Action learning Most people learn best by doing. An example is requiring the trainees to read the concepts of organisation development and the balanced scorecard as proposed by Kaplan and Norton (1996). with discussion and support from colleagues to help them reflect on their impact. Job knowledge skills. Sensitivity training.or sometimes. exposing them to different functions and enabling them to learn about different aspects of the organization and ways of doing things. b) Project working This involves getting managers to work in cross-functional teams. Management development programs can also be classified as work. coaching or understudies. 81 . Action learning programs help to achieve this by making trainees focus on solving live issues in their normal working environments by trying out different approaches. Job knowledge can be acquired through on the job experience. Organisational knowledge This is improved through the use of position rotation and multiple management General knowledge skills. special meetings and selective reading assignments. education and training. This knowledge is acquired from educational organisations through exposure to special courses. Putting people on such teams is one way of broadening their experience and effectiveness.

although there is an ever-growing number of 82 . They are not a physical location. An important aspect of getting people together away from the workplace is that they can exchange ideas outside the classroom. Participants are put in a position of practising behaviour in conditions very similar to those they will meet in the course of their everyday work. Using this approach. Education and training (a) Formal training courses Formal training is given in the shape of courses. but in the private sector. (b) Executive Education This is often offered at graduate-level business schools that aim to give classes for chief executives and other top managers and entrepreneurs. Their content will vary according to the organization and the role the individual is to fill. counselling and coaching sessions. management development may choose to focus on a limited number of core organisational competences.d) Competency-based This uses competency frameworks as a means of identifying and expressing development needs and pointing the way to self-managed learning programmes or the provision of learning opportunities by the organisation. Outdoor development is sometimes used for team building purposes. particularly at key transition points such as first management jobs and as preludes to promotion. An important part of the centre’s activities will be feedback reviews. Development centres focus on the competencies needed in the future. These programs do not usually end in a degree. These courses are increasingly being delivered in the form of modules. Change management appears to be increasingly popular. while inhouse providers or external deliverers can provide 'one-off' training to fill particular gaps which might be identified because of organisational needs or through the review and one-to-one processes mentioned above. finance and business strategy is a key component. with work-based projects and maybe coaching and mentoring in between. while meeting people from elsewhere in the organisation helps in corporate networking. e) Development centres Such centres help participants build up an awareness of the competences their job requires and to construct their own personal development plans to improve their performance in the present job and to enhance their careers.

Survey report. M. and access is flexible so that people can learn in their own time. BERNTHAL. Evaluate the management development program:  Look for changes in behaviour and managerial performance. Kogan Page. 6. It provides large populations with the same material.0. It is important to evaluate learning in order to assess its effectiveness in producing the outcomes specified and/or indicate where improvements or changes are required to make the training even more effective. may not succeed. (2005) UK global comparisons leadership forecast 2005-2006: best practices for tomorrow's global leaders.R.Executive MBA programs that are very similar and offer a Master of Business Administration upon completion of the coursework. P. London: Chartered Institute of Personnel and Development. ARMSTRONG. REFERENCES 1. A management development program should be able to demonstrate how it will meet or contribute to organisational objectives. especially the top management. DESIGNING AN EFFECTIVE MANAGEMENT DEVELOPMENT PROGRAM In designing an effective management development program. 4. which is the use of computers to deliver training.(2006) A Handbook of Human Resource Management Practice 10th Ed. the following guidelines are recommended. R. E-learning and blended learning Organisations are seeking to supplement traditional courses by e-learning. and WELLINS. 3. London 2.S. Provide feedback on effectiveness of program as well as the progress of the managers. 1. Define the purpose of the program and behaviours to be developed. Activities that lack the support of the total organization. 2. The program should be designed to ensure that the individuals to be developed are motivated to participate in the activities of the program. 3. often delivered through corporate intranets. 83 . Find and use organisational support for creating a process not an event.

http://www.L. http://en.org/wiki/Management_development CH.wikipedia. (2006) Human Resource Development 4th Ed. and DESIMONE.(2004) Human Resource Management 10th Ed. DESSLER. US 5. J. G. R.org/mgmt_dev/ Planning Management Development 6.  Define concepts related to careers  Discuss models that relate careers to the stages of human life.managementhelp. Thomson South-Western. it is expected that the reader will be able to:  Explain the concept of career management and development from a historical perspective.M. 84 . After reading this chapter.  Explain the role of individuals and managers in managing careers. 10: CAREER MANAGEMENT AND DEVELOPMENT Chapter objectives. WERNER.3. Prentice Hall 4.

Employers on the other hand are expected to provide opportunities for skill development. and financial well-being. It is also wise to find ways to influence the careers of their employees. economists and management scholars are all trying to understand how people select and work within certain careers. External trade liberalization has exposed firms to greater competition. This has forced organizations to respond through business practices such as downsizing. By so doing. sociologists. shrinking hierarchies. and the career choices they make will determine to a large degree their success. Geographical boundaries no longer limit the operations of multinational or global firms. When used for advancement it 85 . They are also expected to involve the employees in making decisions concerning their careers and performance based compensation. Human Resource Development (HRD) managers should therefore understand how employees make career choices. A Historical perspective. technological innovations and more performance-oriented HRD programs. Traditionally people were not future oriented and they believed if they joined an organisation. the demand for skilled employees was greater than their supply. add demonstrable value to the organisation and to understand the nature of their employer’s business.INTRODUCTION Many people in different fields including educators. cost cutting. Career development was seen as the concern of the employer so as to train and develop managers for the future. the employees have the primary responsibility of developing themselves in order to remain employable. psychologists. The employee would then have to be loyal to the employer. and education. Since the 1980s the business environment has been turbulent. worked hard and stayed out of trouble they would have the job as long as they wanted. Most people spend a lot of time working. DEFINING CAREER CONCEPTS The word career means many things to many people. It also has different meaning among researchers. training. The employment relationship is now an exchange relationship for the mutual benefit of both parties. the human resource managers will do a better job of human resource planning and preparing employees for longer term responsibilities. Nowadays. Consequently. the new relationship is one in which there is no assurance of long term employment. For many years. happiness. life time or long term employment was the order of the day. mergers and acquisitions. When used in the property of an occupation or organisations it describes the occupation itself. Consequently. This can also be called the “entitlement mentality” towards jobs where the employer owed the employee benefits and all the other things that go with work. outsourcing. employees are now expected to assume responsibility for developing and maintaining their own skills.

2006). H. how one feels about themselves. choices and consequences. timing and sequence of steps to attain a specific career goal. and programming work. opportunities. 1 Career management is a process for enabling employees to better understand and develop their career skills and interests and to use these skills and interests 1 Bernardin. banking. Bernadin (2003) says that career planning is a deliberate attempt by an individual to become more aware of his or her own skills. constraints. Careers can determine where one lives. Thus career development refers to an ongoing process by which individuals progress through a series of stages. (2003).. each of which is characterised by a relatively unique set of issues. Pg 194 86 . identifying career-related goals and establishing plans for achieving those goals. choices and consequences. 2003). the kind of friends one makes. Examples of careers are medicine. acquires information about opportunities and choices. and establishes action plans to attain specific goals. values. Career Development It is important to understand how careers develop over the life time of an individual. interests. Dessler (2005) describes career planning as a deliberate process through which one becomes aware of personal skills. It is also the individually perceived sequence of attitudes and behaviours associated with work-related activities and experiences over the span of a person’s life (Bernadin. identifies career-related goals. the amount of money one earns. knowledge. motivations and other characteristics. Career development comprises of career planning and career management (Storey. 3rd Ed. and the way others behave towards the person.denotes one’s progression and increasing success within an occupation or organisation. 1996). then a senior accountant and then to a financial manager before becoming the chief executive officer. military and plumbing. Human Resource Management: an experiential approach. teaching. education and related developmental experiences to provide the direction. opportunities. This is because there seems to be a relationship between the stages of an individual’s life and the career choices that have to be made. Career planning is a deliberate process of becoming aware of self. themes and tasks (Greanhaus et al. constraints. An example is the movement from an accounts assistant to an accountant. interests. identifying career-related goals. 2000). Definition of Career A career is the pattern of work-related experiences that span the course of a person’s life (Werner & Desimone. J. A career can also be defined as the occupational position a person has had over many years.

isolation 7. Where the challenge is overcome. industry vs. despair Age Range (years) infancy 1-3 4-5 6-11 puberty and adolescent young adulthood middle adulthood maturity Erickson says that each stage has a challenge to be overcome. H. identity vs. the individual enters the next stage with a clear vision. If they do not successfully resolve this issue. autonomy vs. initiative vs. If the individual successfully resolves this stage he/she will be able to make a commitment to other individuals and groups. If individuals successfully resolve this issue. intimacy vs. 3rd Ed. Although the infant may not express themselves verbally. Human Resource Management: an experiential approach. J.2 4. Pg 194 87 . otherwise the individual is likely to experience feelings of isolation. The stages and accompanying age ranges are shown below. guilt 4. An infant who is below one year may have the challenge of trusting or not trusting other people.0 STAGES OF LIFE AND CAREER DEVELOPMENT There are many theories that explain how careers develop. mistrust 2. generativity vs. An adolescent may have the conflict between identity and role confusion. role confusion 6. they will enter adulthood with confusion over who they are and what their role in the world is to be. Some of the popular ones are:  Erick Erickson’s model  Daniel Levinsons ERAS approach to adult development. A young adult may be faced with the challenge of developing meaningful relations with others or intimacy. 2 Bernardin. they will enter adulthood with a clear sense of who they are in relation to others in the world. In each stage model a person is faced with a challenge that he or she must resolve in order to develop. basic trust vs.. ego integrity vs. infirmity 5. otherwise they enter the next stage with confusion. implementing and monitoring career plans undertaken by an individual alone or within the organisation’s career systems. Stage of Development (issue) 1. (2003).most effectively both within the company and after they leave the firm. stagnation 8. he or she may cry as a sign of distrust. It is also an organisational process that involves preparing.  John Hollands’ theory of vocational choice  Donald Super’s theory of career development. shame and doubt 3. Erikson’s Model Erikson proposed that people progress through eight (8) stages during the course of their life.

The most meaningful age is age 30 which is a critical age of questioning and re-appraisal the “Dream” that one has been pursuing in life. social issues affecting future generations or serving as mentor for young colleagues The ego integrity stage involves developing. establishing meaningful relations (marriage) and raising a family. This is the era where the person is at a biological peak and is striving to attain the goals and desires of youth which include finding a place in society. the challenge is to develop the capacity to focus on the generations that will follow i. These ERAS are:     pre-adulthood (0-22years) Early adulthood (17. Middle adulthood (ages 40-65) 88 .In middle adulthood.45 years) Middle adulthood ( 40.65 year) Late adulthood (60 year and above) The transitional periods are known as cross-era transitions and may last up to five years. Pre –Adulthood (0.e. An example would be providing preretirement counselling. It is at this stage that many people experience occupational advancement. Levinsons “Eras’ Approach to Adult Development Levinson and his colleagues argue that there is an underlying order of life development called seasons or life cycle or ERAS. It is a self identification stage.generativity. realizing a lifestyle. This takes the form of becoming more involved in the lives of children.22 years) This is where individuals work to develop a sense of who they are. This can lead to being at peace with one’s life as one faces death otherwise one can experience despair over the meaningless of one’s existence. It should be known that organisations often serve as places where individuals can resolve some of these challenges. understanding and accepting the choices one has made in life. Human resource managers should assist the employees to overcome the challenges. Early Adulthood (ages 17 – 45) This is a period of great energy and great stress. obtaining meaningful work.

Congruence is defined as the relative proximity between the client's personality and his or her occupational environment. Diag. retirement. Investigative (I). Holland’s six personality types Thus an individual will be comfortable with those careers that are in line with their personality.1. an individual’s developmental stages throughout ones career life. There is a major questioning of the life structure (goals. “What is it I want to accomplish before I die?”. Artistic (A). both personality and environment are grouped into six major categories: Realistic (R). A person whose personality is investigative would be happy with careers such as criminal investigations. 89 . Enterprising (E). The major challenge of this stage is to come to terms with ones life and accept things as they are instead of dwelling on what might have been. Social (S). Late adulthood (age 60 – Death) The individual faces further major life challenges such as declining health. to a certain degree. According to this theory. The answers to questions such as “What have I done with my life?”. The above models are an oversimplification of reality but they reflect.At this stage a person’s life changes significantly between early and middle adulthood. and achievement depend on the congruence between one's personality and the environment in which one works. Thus vocational satisfaction. loss of family and loved ones. and Conventional (C) as shown in the diagram below. JOHN HOLLAND’S THEORY OF VOCATIONAL CHOICE This theory proposes that people are motivated to find occupational environments consistent with their personalities. stability. “What do I want to leave behind for my family?” can lead one to accept themselves or to become bitter and stagnate. ambitions) and the “Dream” that was vigorously pursued in early adulthood.

the individual chooses several possibilities and then the number of alternatives is gradually reduced to include goals that the individual feels can be reached and in which opportunities exist. The period ends when the individual leaves the workforce. Strategy development. the individual tries to discover whether or not choices and decisions made during the exploratory stage are realistic. It is based on an awareness of self and the environment. Goal setting. It is easier to get where you are going if you have a plan. This will lead individuals to set or revise career goals or strategy development. maintenance. Career exploration. The growth stage represents psychological as well as physical growth.SUPER’S THEORY OF CAREER DEVELOPMENT Super describes life’s stages of development as establishment. exploration. self-concept is developed while experiences simultaneously provide knowledge of the world of work. Career management for individuals involves the following activities. growth. It includes actions that should be carried out and a timetable for performing them. The person may actually get into the desired career and evaluate their capabilities and suitability for the job. Awareness of self and environment. and decline. During the establishment stage.This is a specific and realistic statement of the career goals that a person may wish to pursue. The exploratory stage begins with a fantasy period where an individual realizes that an occupation will be a part of one's life even though the desired occupation is often unrealistic.This Involves gathering information about one’s self and the environment. During this tentative phase. The maintenance phase involves adjustment and improvement while the preretirement period occurs in the decline phase during which the individual's emphasis is on retaining the job rather than enhancing it.This is an action plan for accomplishing the career goal.This involves carrying out the strategy the individual has developed. Strategy implementation. It involves planning for career activities and putting those plans into action. This period involves "trying on" a job. CAREER MANAGEMENT These are the activities individuals and organisation use to actively manage the careers of employees.An individual will understand both opportunities and constraints present in the environment. 90 . During this stage.

New Jersey. United Kingdom. Human Resource Development. Career appraisal-Feedback and information progress towards the career goal permit the individual to appraise his/her career.This is valuable information about the progress towards the career goal. Upper Saddle River. M. & Randy.it is the e extend to which the individual is nearing the career goal. planning and goal setting. coaches etc  Taking a study leave  Enrolling for part-time classes or by correspondence  Observing and interacting with others who form success stories. Support employee development plans Asking employees to be mentors to other staff members.Progress towards the goal. training and workshops. An individual can develop himself or herself through:  Consulting mentors. The best way to approach career managements through careful information gathering. J. (2006). (2005) Human Resource Management. 8.1 The Individual’s role A person bears the primary responsibility of his/her own career. REFERENCES Werner. L. decision making. These include the following:      Provide timely performance feedback Provide development assignments and support Participate in career development discussions with employees so to know the employees career goals and how to achieve them..2 Managers Responsibility There are several roles that managers and supervisor can perform in order to fulfil their responsibility as career developers. ROLES IN CAREER DEVELOPMENT There are three roles in career development namely:8. Individuals should make decision and take assignments that provide them with opportunity to learn and continuously develop news and existing skills. Feedback from work and non-work sources. Thomson Corporation. D. Appraisal leads to rearrangement in career exploration and career management process. United States of America. 4th Edition. Dessler G. 91 . Allocate time and money for classes. action and follow-up. Pearson Education Inc...

compensation. are regarded as the reasonable assignment to an individual employee. duties. 3rd Edition.Careers.gov/civil-service/department Benefits of career management and Development a document of the University of Liverpool. vacancies may create more positions. and responsibilities that. Introduction. Therefore. Results from a job analysis serve as the foundation for many of the human resource function including selection. There are at least as many positions as there are workers in the organisation. (2003). the requirements of that job must be identified.state. United States of America. Human Resource Management: an experiential approach. 11: JOB ANALYSIS Chapter objectives. as a whole. New York. http://findarticles. POSITION . Before the level of pay for a job can be established. Before an individual can be hired to perform a job.. H.com www. before any of these human resource functions can be performed.ort/mggt-development/history The Adult Development of Career Army Officer http://Amazon.This refers to one or more duties performed by one person in an organisation. the qualifications required in performing the job must be determined. human resource professional use a job analysis. Similarly before the performance of an employee can be evaluated or a decision can be made as to whether or not an employee is doing what he/she should be doing.Bernardin. Consider the job of a driver 2. McGraw-Hill/Irwin.com/p/articles/mi CH. To do this. which is a means of collecting information about various aspects of a job. JOB – this is defined as a collection or aggregation of tasks. there must a thorough understanding of the domain of the job.  Understand the main methods used to undertake job analysis.managementhelp.  Examine and analyse the contents of the job analysis exercise. then what the employee should be doing must be identified. performance evaluation. J. A document written by Carter Mac Namara MBA PhD www. and training. Definition of terms 1. 92 . This chapter contains information that will enable the reader to:  Explain the importance of job analysis.

3. 9. JOB ELEMENT .These are groups of jobs or occupations having similar personnel requirements . This analysis involves compiling a detailed description of tasks. determining the relationships of the job to technology and to other jobs and examining the knowledge. or occupations that a person has over his/her working life.this is the smallest unit into which work can be divided. accountabilities and other incumbent requirement. 4. Determining qualifications required of jobholders Providing guidance in recruitment and selection Evaluating current employees for transfer or promotion Establishing requirements for training programs Setting wage and salary levels and maintaining fairness in wage and salary administration Judging the merits of grievances that question assignments and compensation Establishing responsibility. their relationships to other jobs. 7. 6. and personal requirements are investigated. and the personal capabilities required for satisfactory performance. A CAREER . Purpose of A Job Analysis Although the Job Analysis is an essential foundation for staffing.This is a job that is common to many firms and areas. Signing a document is an example of a job element in the job of the General Manager. accountability. JOB ANALYSIS. 4. 5. it may be used for many other purposes such as: 1. making a sales call. JOB FAMILIES OR OCCUPATIONAL FAMILIES . 6.Marketing executives and customer service executives are in a job family. 7. 8. 5. processes. 8.It represents a sequence of positions. TASK – it is a distinct work activity carried out for a distinct purpose. OCCUPATION . Electricians and accountants are examples of occupations. DUTY . preparing a lecture. 2. 9. and the conditions under which work is performed. The job analysis indicates what activities and accountabilities the job entails. it is an accurate recording of the activities involved. It is sometimes called "Job Study' suggesting the care with which tasks. and authority Providing essential guides in the establishment of productions standards Providing clues for work simplification and methods improvement 93 .3. jobs. The duty of an accountant may include preparing monthly payments for the employees. qualifications or employment standards. responsibilities.It is a systematic exploration of the activities within a job. Examples are typing a letter. The Job Analysis involves studying jobs to determine what tasks and responsibilities they include.A duty is a number of tasks that are done by a job holder.

setting up and many others 6. What the typical workers does . opportunities for advancement.emphasis here is on the nature of operations and may specify such operations as handling. When a new job is created The information provided by the Job Analysis process is written into the record in the form of job descriptions and job specifications. routine.specific operations and tasks that make up the assignment.its location. union jurisdiction. 94 . or for funds 4. usual sources of employees When Job Analysis is Carried Out A Job Analysis can be conducted at 3 different times: 1. yarns. Steps in Conducting a Job Analysis 1. essential co-operation.experience. social skills etc. feeding. hazards and discomforts 3. apprenticeship. Determine the purpose for conducting a Job Analysis 2. 7.experience required. When changes occur which require new methods and procedures in performing the job. aptitudes. the simplicity. The Job Analysis study seeks to provide information in 7 major areas: 1. milling machines. mental capabilities. It also looks at the working conditions under which the activities are performed and the minimum required qualifications one should possess to adequately perform a given job. co-ordination or dexterity. physical setting. Review and update frequently Areas of Job Information Job Analysis seeks to find a lot of information about a job. Identify the job to be analysed 3. patterns of promotion to and from. drilling. Process the Job Analysis information 6.metals. What materials and equipment the worker uses. An example would be when new technology is introduced into the organization. responsibilities for others. Distinctive or significant characteristics of the job . The exact type and scope of information procured will depend on both the intended use of the Job analysis information and the time and budget constraints imposed on the organisation. etc. if any. supervision. the tools and equipment used. Required personal attributes . 5. directions or leadership from and other jobs. driving. Explain the process to employees and determine their level of involvement 4. When an organisation is started 2.Job Analysis is the study of jobs within an organisation so as to determine the activities employees perform. property. physical demands. 3. or lathes. plastics. Determine the data collection method and collect job analysis information 5. their relative timing and importance. or complexity of tasks. The job identification . physical strength. grain. removing. How the job is performed .its title 2. Job relationships .

the conditions under which the activities will be performed. The information needed required to accomplish a job analysis include: 1. knowledge. secondary or university). Performance standards to be achieved 4. induction of new employees. Machines and equipment 6. which show what the jobholder will do. The data for job analysis must be collected from people who are directly or indirectly involved with the job using any of the following methods: 1. how they are performed. training. education (primary. Included in the information are accurate and concise statements. they are also useful in making decisions related to training and development. Job demands 3. Working conditions and potential health hazards 5.JOB DESCRIPTION It provides information on the duties and responsibilities of a particular job. The tools used to perform the job e. Contents of a job description: 1. and performance appraisals. skills or abilities. how the jobholder will perform. The form of communication patterns 4. Job related tangibles and intangibles as well as standards METHODS OF JOB ANALYSIS Since organisations are different. JOB SPECIFICATION It identifies the minimum acceptable qualifications that a jobholder should possess to perform a given job adequately with minimum supervision i. standards and time required in performing the activities. Percentage of time to be devoted to each duty 3. Major duties to be performed 2. Number of persons required to work on the same job 7. and the time taken to perform each activity. Reporting relationships-who reports to who and how many people report to one position 8. the method used is based on the goals the information will serve and the suitability of the method to the organisation. systematic information gathering and review. machines and equipment A job description requires periodic. if any 6. when deciding who should be promoted/demoted/transferred. It should be in line with the organisation’s objectives and mission. Job descriptions are used during recruitment.g. Supervisory responsibilities. 2. Employee oriented activities. experience. Observations An individual at work can be observed to record a brief description of the activities performed. Knowledge of type of tools 5.e. 95 . discipline of the workers and compensation administration.

market and financial planning. efforts should be made to make sure that individuals who are likely to behave differently from normal are not aware that they are being observed. This method is most suitable where physical skills are required but is limited where mental skills are required. Nevertheless. Therefore. 6. mental processes. The questionnaire must capture the job title. Management position description questionnaire This questionnaire is designed for management positions and uses a checklist method to analyse the job of a manager. Employee Recordings The employees can be told to maintain written records of what they do and how they do it on a daily basis. 96 . co-ordination of other organisational units and human resources. 2. people and things. 4. It concentrates on the interactions among the work. products and services responsibility. The activities should be recorded in order of priority immediately after they have occurred including any specific problems or weaknesses encountered. it would be possible to rank the jobs in relation to these variables. and public and customer relations among others.However. which defines what a person actually does rather than for what he is responsible. purpose of the job. Interviews Sometimes a good understanding of the activities involved can be obtained by talking to the employee and to their immediate supervisor to confirm whether both view the job in the same perspective. and relationships/interactions with other workers Each factor is then evaluated on a specified scale such as extent of use. Questionnaires It involves administering a structured questionnaire to employees so that one can identify the activities they perform in accomplishing their jobs. interviews are flexible and they can avail very important information from the employees. 3. internal business control. Functional job analysis This is a worker-oriented method of describing jobs. when an individual is aware that he or she is being observed or recorded s/he behaves differently from normal. Afterwards. reporting relationships. 5. the worker and the work organisation. Interviewing can be a rather time consuming and costly method of data collection especially where many employees are involved because the interviewers must be trained to perform the interviews. 3. Position analysis questionnaire This questionnaire analyses a job in terms of information input. Ideally. work output. and the main tasks and duties. Jobs involve various measures of these variables. the concern is on the proportional involvement of the job on data. The job of many managers has elements of product.

Due to changes in the nature of organisations. JOB DESIGN This is the process of determining how specific tasks are combined to form complete jobs. more independence and responsibility. the jobholder is given greater control over his work. It also establishes how a particular job relates to other jobs or work in an organisation.These factors can be used to determine training needs of those individuals who are about to move into managerial positions as well as for setting compensation rates for managerial positions. increased pay or other fringe benefits) it can affect the employee’s morale negatively. jobs have to be redesigned. 97 .e.g. Job Enrichment involves expanding a job vertically i. economic and technological factors. This is actually promotion since it increases the corresponding compensation and authority. Two approaches used in job redesign are job enlargement and job enrichment Job Enlargement involves expanding a particular job's content horizontally so as to create a wider variety of duties for the jobholder and so as to reduce boredom. Since the increased duties and responsibilities are not accompanied by corresponding benefits (e.

INTRODUCTION Definition of job evaluation. Scholars of global human resource management may need to understand the legal considerations of job evaluation. the reader will be expected to be able to:  Define job evaluation  Explain the importance of job evaluation  Discuss the systematic process of conducting job evaluation including the relevant methods. It is a technique of job analysis. Legal consideration could include aspects such as : 98 . That is a separate operation. single plant or multiple size organizations. A job evaluation system is composed of compensable factors and a weighting scheme based on the importance of each compensable factor to the organization. Furthermore. Job evaluation can be defined as a systematic procedure designed to aid in establishing pay differentials among jobs. classification. varying in approach. techniques of job evaluation have developed. it is not concerned with the total volume of work. only the job is evaluated. the number of people required to it. These characteristics include job characteristics may include job complexity. 2006). The aim of job evaluation is to provide a systematic and consistent approach to defining the relative worth of jobs within a work place. not the person doing it.Ch. and responsibility. It is also a systematic process of defining the relative worth or size of jobs within an organization in order to establish internal relativities ( Armstrong. In addition. responsibility and working conditions.12 Job evaluation Chapter objectives After reading this chapter. the scheduling of work. Methods of job evaluation discussed in this chapter include ranking. normally the subject of negotiation between management and employees or their trade union representatives. It therefore provides a basis for a fair and orderly grading structure. Job evaluation does not determine actual pay. or the ability of the job holder. assessment and comparison and it is concerned with the demands of the job. required education. Others are less complex. such as the experience and the responsibility required to carryout the job. required experience. A compensable factor is a job characteristic that the organization values and chooses to pay for. working conditions. It is a process whereby jobs are placed in a rank according to overall demands placed upon the job holder. point plan factor comparison and Hay system among others. Some involve an examination of jobs according to criteria such as skill. Moreover.

 Job evaluation can be used by organizations as a basis for job matching and external pay comparisons. selection and compensation. A firm’s management will then be able to evaluate what might work in their organization and also have an opportunity to examine the direction that job analysis and evaluation are moving in and their role in the future. among others.1 The right to equal pay Employees that operate dangerous equipment Executives and specialists of transport companies. Importance  Job evaluation can be beneficial when the existing grading system/structure in an organization is in need of review.  Job evaluation facilitates the accommodation of new or revised jobs into the grading structure. Ranking 99 .  Job ranking  Job classification  Factor comparison  Point factor evaluations  Proprietary brands  Market pricing  Internal benchmarking  Analytical matching. requirements and the relative importance of these duties for a given job.   1. These practical courses allow one to establish and document the relatedness of employment procedures such as training. Methods of Job Evaluation The major methods of job evaluation include the following. not a description of the person. PURPOSES/IMPOTANCE OF JOB EVALUATION Purpose The purpose of job evaluation is to identify and determine in detail the particular duties.  Job evaluation helps or maintains the credibility and acceptability of a grading system. Job evaluation is designed as the methods and practices of ordering jobs or positioning with respect to their value or worth to the organization and applying the appropriate remuneration accordingly.  It ensures the organization meets equal pay for work of equal value obligations. It is a process where judgments are made about data collected on a job.

Each job’s factors are ranked against each other job’s factors. The point factor method addresses three major aspects namely:  defining the compensable elements  Assigning a numerical scale of the factor degrees. Jobs are compared with each other and arranged according to their perceived size or value to the organization. cheap to the organization. Each class has a description of the characteristics such as the skill. and compensable factors are not clearly defined. 100 . Just like ranking. there is less difficult in setting the pay for employees.factor method This method involves breaking down jobs into factors or key elements representing the demands made by the job on the job holders. Job descriptions are slotted into a series of classes that cover the range of jobs. the grades are general and abstract. The comparison may be based on a single factor such as the level of responsibility. Moreover. grading is simple to administer. decision making and responsibility that relate to jobs in that category. amount of decision making involved and the number of subordinates supervised. As long as the grades exist. It is used a lot for public service jobs. The factor comparison method involves comparing jobs against other jobs on the basis of how much of some desired factor they possess. Finally. Job classification or pay grades. midpoint and maximum pay. there is the minimum. However. less costly to the organization and requires little training. and the impact made by the job. The disadvantage with using grades is that some jobs will be underpaid while others are overpaid. the market pay rate for each job is then allocated among the factors based upon a market pay rate scale. The method is simple and easy to implement. it can perpetuate equity because it takes into consideration what is happening in the market. The class descriptions are the standards against which the jobs are compared. Some of the factors considered include the level of responsibility.  Assigning weights to the factors which reflect the relative importance of each factor. The ranking is based on the whole job and the jobs are not broken down into factors or elements. the risks involved in the job. and requires little training. with very few different jobs. ranking method is suitable and only workable for small organizations. For each job grade. Factor Comparison This is a very complex method of job evaluation. Job classification is a very common job evaluation method which involves slotting jobs into the pre-described grades. Point. the competences required. Nevertheless.Ranking simply orders the job done in the organization from the smallest to largest based on the evaluator’s perception of relative value or contribution to an organization’s success.

Some of the compensable factors include job knowledge. professional and technical job evaluation method. supporting and administrative). reasoning. with both management and employee representatives agreeing from the outset that they will act upon the results. agreement reached before embarking on job evaluation. if possible.  The committee members then compare their individual evaluations and resolve differences that might exist. Commitment to change will be essential. Know –how is the sum total of every kind of skill. It is recommended that a policy on how to deal with such situations be considered and. Problem solving is the original “self starting” thinking required by the job in analyzing. controlling and evaluating. 101 . Perhaps. Know-how involves integrating and harmonizing the diversified functions involved in managerial situations (operating. Using the Hay System.Compensable elements are these characteristics in the job (not the position) that the organization values and will help it to pursue its strategy and achieve its objectives. problem solving and accountability.  The committee meets with the jobholders and supervisors to explore questions and clarify content.  The job description questionnaire is given to each member of the job evaluation committee for his/her initial evaluation. the supervisor and other managerial staff who have responsibility for the position. executing. evaluating.  Job description questionnaires are completed and signed by the jobholder. the most common method here is the Hay Guide Chart which in essence is an administrative. These are know-how. Accountability is the answerability for an action and for the consequences thereof. jobs are evaluated as follows. Proprietary brands These are job evaluation methods offered by management consultants. it is the measured effect of the job on end results. This know-how may be exercised consultatively as well as executively and involves in some combination the areas of organizing. creating. Conclusion Job evaluation will involve change even though the change may only affect same jobs. arriving at and making conclusions. planning. The hay system considers three major variables in job evaluation. problem solving abilities and accountability. Job evaluation may result on same existing employee’s jobs being placed in a lower grade which does not equate with other current pay-rate. however acquired. needed for acceptable job performance.

ares.ppt Ch.  Appreciate the role of compensation policies.petersburrycitg.org. 12: COMPENSATION OF EMPLOYEES AND MANAGERS Chapter objectives The objectives of this chapter are to:  Understand the components of a compensation system.  Understand the factors that should be considered when designing compensation systems.References: http://www. 102 .com/business/expert/staff/ http://www4semo.  Distinguish executive compensation from the compensation of ordinary employees.html http://www.edu/human resources/jobeval/hay.uk/publications/BOI.

effective management of cost. The intrinsic rewards include:    More responsibility Opportunities for personal growth Participation in decision making 103 . Perceptions of inequity will make the employee dissatisfied with the current employer. The goals of compensation administration are to design the lowest . Wages can provide a source of motivation for employees to perform effectively. nature and distribution of rewards therefore demand careful attention. working for fewer hours. physiological needs for food. they may seek to change the status quo. Indeed. skills and effort made available by the employee in fulfilling job requirements aimed at achieving organisational objectives (Swanepoel et al 2000:526). to safety. remuneration management. Human beings have many needs ranging form the most basic (i. water and clothing). salary and wage administration or pay administration. social. The compensation should be fair to the organisation and to the employees. Money is probably the most important reward. The perplexing question to employers is how much employees should be paid.cost pay structure that will attract. The employees use the rewards to satisfy their needs. and misuse of company assets. Strategies for changing the status quo include looking for other jobs.e. and retain competent employees. negative word of mouth advertising.Introduction Employees exchange their inputs (physical and mental work behaviour) for outputs (rewards). or worse than employees in other organizations. Employers can use rewards to shape the behaviour of employees in the workplace. motivate. Organisations generally seek to pay the least that they have to in order to minimise costs so fairness means a wage or salary that is adequate for the demands and requirements for the job. esteem. The comparison can reveal that the employee is paid better. employee remuneration is often the single largest cost item to an organisation. The total cost of the overall remuneration and reward system can have a decisive bearing on an organisation’s competitive position. The employees perceive fairness in terms of the input-out come ratio. Where the employees perceive an imbalance in this ratio. at the same level. and that also will be perceived as fair by employees. Rewards can be classified either as intrinsic or extrinsic. Remuneration may be defined as the financial and non financial extrinsic rewards provided by an employer for the time. Words commonly used for remuneration include reward management. Employees also compare what they earn with what their counterparts in other organizations earn. This is according to the equity theory. and self-actualisation needs.

a policy statement in this regard answers the question of how much freedom is given to individual managers to influence the salaries of their staff. Pay differential/intervals within a job grade and between consecutive job grades should be reflected.how much information about remuneration should be made freely available to employees and their representatives and what degree of pay secrecy should be enforced    The minimum level at which new employees should be engaged needs also to be stated. The extent to which individuals/groups can negotiate their pay and allowances within the established rates is also supposed to be covered.  Market rate policy-here one states the extent to which market rate pressures should be allowed to affect or possibly distort the salary structure. or the same as the prevailing market rate.the policy should state whether the pay level will be above.  Equity-it should be stated how the organisation would strive to achieve equity in its remuneration. below.this is the question of how achievement would be rewarded and the role incentives and bonus schemes would play.  Communication. Performance related Commission Performance bonuses Merit pay Incentive schemes Achievement awards Stock ownership Membership related Basic salary Retirement benefits Car allowance Medical aid Subsidised canteen Vacation Profit sharing COMPENSATION POLICIES Firms should formulate compensation policies. Specific issues to be included in the policy include the following:  Pay level. More interesting work Below is a summary of the extrinsic rewards.  Performance related rewards.  Control. 104 Status rewards Location of office Office Office furnishings Assigned parking Own secretary Public recognition Social rewards praise Friendly greetings Friendly greetings Dinner invitation Pat on the back Social gatherings . Table : Extrinsic rewards.

and perceptions of inequity as a result of dissatisfaction with the compensation package. commissions. Incentives – This is the compensation that rewards employees for efforts beyond normal performance expectations. 3. employees who are paid hourly are said to receive wages. and restrain an individual manager's ability to give unwarranted raises.  Induce and reward higher levels of performance. it must:  Identify prevailing market wages and salaries and ensure that its pay system is competitively favourable. given to an employee or group of employees as a part of organisational membership. Time .this is the basic compensation that an employee receives. Pay. which is consistent from period to period despite the number of hours worked. and profit sharing plans among others. which are payments directly calculated on the amount of time worked.Employees may be paid for the amount of time they are on the job. government. THE PAY COMPONENT OF COMPENSATION. customers.  The compensation should be able to attract. Benefits . vacation pay. or retirement pensions.  Pay competitive wages and salaries. and civil rights bodies BASES FOR COMPENSATION There are 3 bases namely: 1. considering organisational financial constraints  Administer pay within legal constraints  Minimise turnover. For an organisation to have an effective pay system. usually as a wage or salary. The rate and intervals at which pay rises can be granted forms part of the policy. The people can also be paid a salary. 2. Being 105 .  Control labour costs with carefully designed programs that identify a job's value and an employee's value to the organisation.  Identify the appropriate frequency and size of raises. trade unions.  TYPES OF COMPENSATION: There are 3 forms of compensation namely: 1. The pay increases can be fixed or variable amounts and can be granted at a variable interval or fixed intervals. People who are paid salaries receive payments that are consistent from time to time despite the number of hours worked. Employees who are paid on hourly basis are said to receive wages. It takes the form of bonuses.These are indirect rewards such as health insurance. retain and motivate the right quality of staff. Flexibility of the pay structure due to environmental changes is also to be included.  It must be flexible to adapt to environmental changes such as income and inflation  It should be socially acceptable to the organisation’s publics who include the shareholders. The most common means of payment based on time is hourly pay. grievances.

It should be perceived as reasonable within the framework of impartiality and equity (affirmative action) In making the pay level decisions then the following factors should be considered. a growing number of organisations are paying employees. CHARACTERISTICS OF A GOOD COMPENSATION SYSTEM Factors that would make a good compensation package include the following: 1. 3. It should be flexible to adapt to environmental changes e. In Kenya. education. Performance and Productivity .700 per month. Task or Skill-Based Pay . experience and other personal attributes of the employees) is more likely to migrate to those organisations where the pay level is higher. and other personnel practices are about the same. inflation 4. 6. motivate and retain the right quality of staff 2. 3. employee performance is used to make pay increase decisions. 106 . and ability to participate in strategic planning are some of the behaviours compensated for. Union influences Labour unions generally attempt to standardise wages among unionised firms in a particular industry. assuming that working conditions. trade unions. particularly hourly ones. 4. for the skills or competencies they have. the shareholders.salaried typically carries higher status. life cycle. Whatever specific systems and programs are used. is one in which an employee is paid for each unit of production. problem solving skills. rather than for the specific tasks being performed.500 in 2006. and financial constraints. philosophy. location. customers. It should be socially acceptable to the organisation's public. Leadership.A direct productivity .Nowadays. income. civil rights bodies 5. it is important that the impact of compensation on behaviour of employees and managers be recognised. decision making abilities.800 in 2005 and Ksh. Ksh. In a merit or pay-for-performance systems. called piece-rate system. segment of an industry. The pay can also consider the knowledge. It should attract. skills and behaviours possessed by the employees. Minimum wages Governments specify or set legislations in relation to the minimum wages that can be paid to employees.based system. the minimum wage in 2002 was Ksh. 2. Usually an organisation ends up using a combination of approaches to compensation. It should compete favourably within the job market and within the job sector of the economy 3. Compensation levels in other organisations Organisations can conduct their own wage and salary surveys in order to assess the pay levels within a particular industry. greater loyalty and more organisational commitment than being paid wages. or local area.g. 3. 1. government. Paying for skills rewards employees who are more versatile and have continued to develop their skills through continuous cross-functional training. Theoretically high quality labour (in terms skills. 2. depending upon its culture.

They can be for individuals. According to these theories employees compare what they earn with what their counterparts earn in other organizations. This is especially where employees' tasks are interdependent and thus require cooperation. c.sales personnel can earn a commission over and above the basic pay. 5. However. b.this is where employees who perform very well have a sum of money added to their base pay. chemical engineers. They include: a. effectiveness. 50% of the time saved). pay levels rise much more slowly during periods of high unemployment when labour is abundant.where an employee saves time in generating a certain output. Labour market and Economic conditions Organisations raise wages and salaries when inflation is high.g. Individual incentives work best where clear performance objectives have been set and where tasks are independent. Time saved . Organisations increase the pay level of their employees in order to attract employees with scarce and high demand job skill e. Organisation wide incentives are to direct the efforts of all employees towards achieving overall organisational. governments. or a specific type of employee or occupational group is in short supply. 1. unions.the employee could be paid a salary for a certain output. unemployment is low. The employees will either be demotivated or motivated based on the outcome of the comparison.4. Increases in the cost of living also have a substantial impact on pay levels. Individual Incentives These are for individual performance. Motivation theories especially equity and expectancy theory. or organisation-wide performance. 2. 7. The bargaining power of stakeholders such as individuals. Any output above that is paid on a per unit basis. Periodic increases in wages and salaries are often tied directly to changes in the Consumer Price Index (CPI) and Cost-of-Living Adjustments (COLA). the employees may stop performing those tasks for which they are not rewarded.g. It is generally easier to avoid large pay increases than it is to cut pay levels later because of financial hardships. Conversely. Piecework . firms need to look beyond the immediate profit picture and forecast the financial condition of the company in the future. Commissions . d. private consultants and so on should also be considered. These types of incentives 107 . groups. INCENTIVE COMPENSATION PLANS Incentives are given in addition to the wages. he/she can be paid a bonus for the time saved (e. Merit pay. 1. Group Incentives Each of the individual incentives can also be used on a group basis. civic organisations. Organisational ability to pay and strategy In making pay level increases.

The benefits should convince the employees that the Organisation for which they work cares for their needs 3. Gain sharing/ Scanlon Plan/ Rucker Plan – Whereby any resulting gains obtained from implemented suggestions from employees are shared between the organisation and the group d. Plant wide incentives Plant wide incentives are intended to direct the efforts of all employees towards achieving overall organizational effectiveness. Security & Health Benefits 108 . The employees benefits should provide a tax efficient mechanism in remuneration 4. etc.  Profit sharing plans. Compassionate leave. tea and rest breaks. They include the:  Scanlon plan. Profit sharing plans. Maternity/ Paternity leave.this is an acronym for “Improving Productivity through Sharing”.  Improveshare. Holidays. and Lunch.produce rewards for all employees based on organisation wide cost reduction or profit sharing plan. Payment for Time Not Worked e. Weekends. Employee Stock Ownership Plans (ESOPS). Annual leave. Sick leave. The benefits should satisfy the actual or perceived personal needs of the employees 2. The costs of the benefits should be calculable and provision should be made for sound financing Types of Supplementary Benefits are: 1. Performance Objectives SUPPLEMENTARY BENEFITS: An employee’s benefit program should be guided by the following principles: 1. They include: a. 3. Public holidays. The benefits should be consistent with the strategic plans and compensation objectives of the Organisation 5. 4.these give the employees the opportunity to buy shares of the company thereby changing their status to be owners of the firm. c. Cash bonuses b. 2. Group piece-rates b. Other personal excusable absences. Incentive Plans for Executives a. It is a mathematical formula for determining employees benefits.here part of the profit made by the firm is redistributed to the employees.g. Casualty. Study leave. Sabbatical leave. Incentive Stock Options c.

g. and organisations have bid up the price for this talent for competitive reasons. the supply of qualified senior executives is scarce. Rehabilitation Medical Coverage Health Insurance Disability Insurance Pension Plans Social Security Hardship & Risk Allowances Co-operative Savings and Credit Unions & Societies. Retirement Benefits  Mandatory pensions  Private pensions  Gratuity benefits (for those working on contracts) EXECUTIVE COMPENSATION The compensation of Executives deserves special attention because: 1. 2. The basic salaries for executives are higher than the salaries of low-level managers or operational personnel due to economics and motivation reasons. Executives receive perquisites or special benefits that others don't. Death. As a result. Employee Services Benefits  Social/ Recreational Facilities & Health Programs  Subsidised Catering Facilities  Relocation Assistance  Family Planning/ Maternal Clinics/ Child Care  Purchase Discounts for the Organisation’s products  Transport allowance  Funeral Expenses  Legal Representation  Telephone credit services  Wardrobe allowance  Entertainment allowance  Educational Grants for Employees and/or for their children  Interest free/ Lower Interest/ Subsidised Loans and Mortgages 4. High pay motivates/encourages top level managers to perform well in order to keep their jobs and also stimulates the lower level managers to work hard so that they move up the ladder to the "big money". top managers are expected to demonstrate good decisionmaking abilities. This is done to attract and keep good managers and to motivate them to work hard in the organisation’s interest e. In economic terms.          Life insurance Worker compensation due to Disability. Severance Pay 3. Annual physical examinations b. a. 3. This skill is not widely held in the society. and. Interest free loans of millions of dollars 109 .

and legal counselling The bonus and stock option plans can dramatically increase their compensation. It also includes setting long term aims. The CEOs of Citicorp. Following the completion of this chapter. we get mixed results. and IBM earned an average of $165 million in total compensation for the same year. INTRODUCTION. communication and leadership because of their importance in directing employees. many top executives in USA were paid huge sums of money. The CEO of Computer Associates international was paid $650 million in salary. Bank of America. Directing is influencing people’s behaviour through motivation. Supplementary disability insurance h. Some highly paid executives perform better than others. Liberal expense accounts g. bonuses. leadership and discipline. This chapter will examine the concepts of motivation. Compuware. 110 . the reader should be able to:  Explain the relevance of the different theories of motivation to the motivation of employees including the practical methods of motivating workers. It will also examine other more practical approaches of motivating the workers. Supplementary retirement accounts i. communication.  Appreciate the importance of leadership in the management of workers. 7: DIRECTING Chapter objectives. group dynamics. The purpose of directing is to channel the behaviour of all personnel to accomplish the organization’s mission and objectives while simultaneously helping them accomplish their own career objectives. tax.  Discuss the importance of the communication process in the management of human resources. Payment of life insurance premiums d.c. In 1999. 1. Ch. MOTIVATION. Club memberships e. communicating a vision and motivating people to achieve them Human resource managers spent a lot of time directing the efforts of organizational members. and stock based incentives. Company automobiles f. Are Executives Worth their Salaries? If we compare the executives total compensation with their performance. Lee Iacocca is an example of a highly paid manager who successfully revitalized Chrysler Motors in the USA. Personal financial.

with different ideas in mind. Victor Vroom (1964) and Stacy Adams (1965) were some of the major contributors of the process theory. The main contributors here were Abraham Maslow (1954) and Herzberg et al (1957).It ties motivation to rewards and punishments. It is based on the strong belief that money is the strongest reason for working and that to motivate workers it may be necessary to pay them more money. No one approach is considered to be the “ultimate”.  1.  Instrumentality theory. rewards or punishments dictate how people behave. The theories here focus on the psychological processes which affect motivation. It explains why people do what they do and continue to do it even when they face difficulties. It is the “why” of human behaviour. Each approach has contributed to the understanding of human motivation. They approach motivation from different starting points. goals and perceptions of equity. Rewards are often known as “carrots” while the punishments are referred to as “sticks”.  Content theory. There are numerous theories of motivation but all the theories can be summarized under any of the three theories. The use of rewards can increase motivation while punishment can make workers less willing to work. Motivated workers will be both effective and efficient. Human resource managers should understand the concept of motivation thoroughly because it affects the performance of workers. Self motivation is also known as intrinsic motivation. these are expectations. INSTRUMENTALITY THEORY Instrumentality is the belief that there is always a reaction for every action. Workers can have self motivation in which they do not need external parties to push them. This is called extrinsic motivation and involves the use of rewards such as increased pay or promotion. Process theory.Motivation is the driving force that propels human action. MOTIVATION THEORIES The approaches to understanding motivation differ because many individual theorists have developed their own views and theories. The opposite of self motivation is a situation where something has to be done for the person to motivate them.it holds that motivation is a process. Simply put.this theory holds that human behaviour is related to the needs that people have. This theory was first contained by Fredrick Winslow Taylor in his scientific management theory. and from different backgrounds. According to this theory. 111 . human beings have many needs and most behaviour is directed towards the satisfaction of the needs and wants. Less income is a source of de-motivation.

social. . Other contributors were Clayton Alderfer with the Existence. the main focus is on food . Physiological needs – this is the first and possibly the most important level of needs. giving employees company uniforms. Abraham Harold Maslow classified the needs that people have into five major categories which the basic. They are also known as basic needs. CONTENT (NEEDS) THEORY This theory is based on the premise that human beings have a wide variety of needs and that whenever a need reaches the threshold level. and the Herzberg’s two factor theory. there is no simple relationship between needs and goals and a need can be satisfied through different approaches. disability etc) to the employees. The importance of a need depends on an individual’s background and present situation. and Growth (ERG) needs theory. Needs range from the most basic to very high level needs such as the need for self actualization. This need can be met by providing insurance (health. food. his Master of Arts degree in 1931. affection and acceptance by others especially those of the same group. a) Maslow’s Hierarchy of Needs theory Abraham Harold Maslow was born April. and sleep. The family is a very special 112 2. accident. These are the needs for oxygen. 1. and his PhD in 1934.man lives on bread alone when there is no bread! Nevertheless. or shelter. food. Safety needs– they relate to the needs for protection against danger or against any unpredictable happenings in life. ill health. It was Abraham Maslow( 1970) who first introduced the concept of needs. provision of clean drinking water to the employees and paying them wages that can afford the basic necessities among other approaches. safety. he received his Bachelor of Arts degree in 1930. warmth. To an hungry person. having body guards or security personnel for the senior managers. shelter.2. all from the University of Wisconsin. Relatedness. engaging security services and so on. the person strives to satisfy it. 1908 in New York to an uneducated Jewish couple which had migrated from Russia. Thereafter. having company cafeterias possibly with subsidized meals. His parents encouraged him to work hard in school. 3. property. all in psychology. They include protection from the fear of accidents. or even losing a job. esteem and self actualization needs. These needs can be met by giving employees housing allowances. The family of nine was actually needy based on the low income of the parents. Consequently. water. Social needs– these are the needs for love. Maslow became interested in research on human sexuality.

Some of the people who often self actualize include musicians and authors. they can never be fully satisfied. Workers are more motivated if what they do satisfies their needs especially the higher level needs.  The most common criticism concerns his methodology. Self-fulfilment (self-actualization) needs – they are the needs to develop potentialities and skills. whenever a lower level need such as food is satisfied. status. Company cars and good job titles can be a source of esteem for employees.  The hierarchy assumes human needs can be met in a hierarchical pattern which is not true because one can seek self actualization even if the basic needs 113 . prestige. This need includes a striving to be accepted by those to whom we feel close and to be an important person to them. The needs hierarchy of needs theory can be portrayed in a figure as below.group. Self Actualization Esteem (Self and others) Belonging and Love Safety and Security Basic (physiological) Needs According to Maslow. and self confidence. They should also have time for recreation and to socialize with other members of the society. Employees should have the freedom to join formal and informal groups. Many individuals rarely achieve these needs unless they have set very low goals in their lives. And because needs recur or takes different forms. The freedom to change careers should also be availed. Esteem needs – these are the needs to have a high evaluation of oneself (self esteem) and to have the respect of others (prestige) as well as a high reputation in the society. As such. Routine and repetitive jobs may not go far in motivating employees. 4. Employees should be allowed to pursue education if it helps them to self actualize. His sample size was too small to make generalizations from. the next higher level need (such as safety needs) becomes dominant and the individual’s attention is turned to satisfying it. The self actualization need is the most difficult need to satisfy. to become what one believes one is capable of becoming. 5. These are the highest level of needs. It is this kind of need that produces strivings for power. Some of the criticisms advanced against Maslow’s theory are outlined as below. human resource managers should be able to redesign jobs to make them more challenging.

particularly achievement. These are the hygiene factors and they are such that if they are absent they cause de-motivation among workers.have not been fully met. It is also known as cognitive theory because it is concerned with people’s perceptions of their working environment and the ways in which they interpret and understand it. b) Herzberg’s two. The problem with hierarchial needs theories is that although they help us to understand general developmental processes. It is common for some people to emphasize self esteem needs even when they have not properly satisfied the basic needs of food.  The theory also assumes that once a need is satisfied. from child to adult. shelter and clothing. as well as on basic needs. The term hygiene is medical and implies the preventive and environmental impact of these factors. supervision. 3 PROCESS THEORIES Here the emphasis is on the psychological processes or forces that affect motivation. and the work itself while accounts of ‘bad’ periods most frequently concerned the context of the job. This theory seems to simply point the way. The need for food seems to recur many times in a day. responsibility. they are not very useful for understanding the dayto-day motivation levels of adult employees. The study found that the accounts of ‘good’ periods most frequently concerned the content of the job. relatedness. it no longer acts as a motivator. The other factors are the motivators because they cause positive motivation among the workers. Company policy and administration. The conclusions of Herzberg et al were that there are some factors which if present do not motivate but bring motivation to level zero.factor model of motivation Herzberg et al (1975) formulated this theory after investigating the sources of job satisfaction and dissatisfaction among accountants and engineers.  The hierarchy assumes individuals can be motivated in relative isolation of needs. The subjects were asked to tell their interviewers about the times during which they felt exceptionally good and exceptionally bad about their jobs and how long their feelings persisted. salary and working conditions were quoted category of “bad” times. This might not be true because the dividing line between one need and another may be very thin. advancement. 114 . Alderfer proposed that satisfied needs become dormant unless a dramatic shift in circumstances increases their salience. recognition. The process theories provide a much more relevant approach to motivation that replaces the very simplistic theories of Maslow and Herzberg. Like Maslow. and growth needs. This is not totally true because needs recur. People have different priorities of what they consider to be needs. He hoped that others would take up the cause and complete what he had begun in a more rigorous fashion Clay Alderfer (1977) refined the idea of Abraham Maslow by categorizing needs into three levels namely existence.

feedback is vital in maintaining motivation. He also emphasized the importance of feedback. particularly towards the achievement of even higher goals. c) Equity theory The Equity or Inequity theory is the work of J Stacy Adams (1965). Instrumentality is the perception of the relationship between performance and rewards. and then the sales person will be more motivated. It 115 . Participation in goal setting is important as a means of getting agreement to the setting of higher goals. Maslow (1954) also emphasized the need for acceptance of and commitment to goals. He found that. Where one of the variables in the relationship does not hold. difficult but acceptable. This theory is concerned with the perception people have about how they are being treated as compared with others. Finally. To be dealt with equitably is to be treated fairly in comparison with another group of people (a reference group) or a relevant other person.The process or cognitive theories can certainly be more useful to managers than needs theory because they provide a more realistic guidance on motivation techniques. It states that motivation and performance are higher when the goals set for individuals are specific. The process theories include the:  Expectations (expectancy theory)  Goal achievement (goal theory)  Feeling about equity (equity theory) a) Expectancy Theory The concept of expectancy was originally contained in the ValenceInstrumentality-Expectancy (VIE) theory which was formulated by Victor Vroom (1964) Valence stands for value placed upon a particular reward by a person. in effect. Some individuals value promotion highly. Higher performance can lead to promotion. this will negatively affect motivation. Difficult goals must be agreed and their achievement reinforced by guidance and advice. It is actually the perceived relationship between effort and performance. A salesperson who believes that by working more hours in a day he or she will make more sales and the more sales will lead to a higher income where the person appreciates a high income. that people will be better motivated if they are treated equitably and de-motivated if they are treated inequitably. b) Goal theory Goal theory was developed by Latham and Locke (1979). demanding goals lead to better performance than easy ones. Equity involves feelings and perceptions and is always comparative since this would be inequitable if they deserve to be treated differently. as long as they are agreed. Expectancy is the probability that an action or effort will lead to an outcome. and when there is a feedback on performance. Equity theory states.

explains only one aspect of the process of motivation and job satisfaction, although it may be significant in terms of morale. The theory can be shown as below. Outcomes by a person Inputs by a person = Outcomes by another person Inputs by another person.

Outcomes are what workers are getting out of the work relationship and they include items such as pay, fringe benefits, increased responsibility, and prestige. The inputs refer to what the employees are putting into the work relationship. Inputs include hours worked, work quality, education and experience. Areas that may lead to feelings of inequity include monetary rewards, workload, promotion, degree of recognition, supervisory behaviour, targets and assigned tasks. Ideally, there are two forms of equity: distributive equity which is concerned with the fairness with which people feel they are rewarded in accordance with their contribution and in comparison with others: and procedural equity or procedural justice, which is concerned with the perceptions employees have about the fairness with which company procedures in such areas as performance appraisal, promotion and discipline are being operated. Interpersonal factors are closely linked to feelings about procedural fairness. Five factors that contribute to perceptions of procedural fairness have been identified. These are: Adequate considerations of an employee’s viewpoint:  Suppression of personal bias towards the employee;  Applying criteria consistently across employees;  Providing early feedback to employees concerning the outcome of decisions;  Providing employees with an adequate explanation of the decision made 4 Other theories Chris Argyris Argyris’s research interests were in the relationship between people’s needs and the needs of organizations. He suggested that the reason for so much employees apathy is not so much of laziness, but rather because of people being treated like children. This led to his so-called Immaturity theory which suggests that the human personality develops from immaturity to maturity in a continuum, in which a number of changes take place. These are as follows: Immaturity-Maturity Theory Immaturity Passivity Dependence

Maturity Activity Relative independence 116

Behave in few ways Behave in many ways Erratic, shallow interests Deeper interest Short time perspective Long time perspective Subordinate position independence Equal or superior position Lack of awareness of self Awareness and control over self Source: G.A. Cole Management Theory and Practice The main reasoning behind this theory is that when human resource managers perceive employees as being immature, then they expect the employees to exhibit the behaviours of immaturity a shown in the table above. The best management practice would be to perceive the employees as being mature. Douglas MC Gregor – Theory X & Theory Y Douglas Mc Gregor (196) proposed the concept of Theory X and Theory Y. He maintained that there are two fundamental approaches to managing people. The approaches depend on the manager’s perception of the employees. Theory X assumptions are negative perceptions of employees. Many managers who lean towards theory X generally get poor results. Enlightened managers use theory Y, which produces better performance and results, and allows people to grow and develop. Theory X (authoritarian management style) assumptions include:  The average person dislike work and will avoid it  Therefore most people must be forced/ coerced, controlled, directed, and threatened with punishment in order for them to work towards organizational objectives  The average person prefers to be directed, to avoid responsibility, relatively lacks ambition, and wants security above all else. Theory Y (participative management style) assumptions are that:  Effort in work is as natural as work and play  People will apply self –control and self-direction in the pursuit of organizational objectives because of the importance of the rewards associated with the achievement.  The degree of commitment to objectives is in proportion to the size of the rewards associated with their achievement.  People usually accept and often seek responsibility.  The capacity to use a high degree of imagination, ingenuity and creativity in solving organizational problems is widely, not narrowly, distributed in the population.  In modern industrial life, the intellectual potential of the average person is only partly utilized. Skinners reinforcement theory. The psychologist B.F Skinner developed the positive reinforcement or behaviour modification. The theory holds that individuals can be motivated by proper design of their work environment and praise for their performance while punishment for poor performance produces negative results.

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David McClelland (1971) advocated for motivation by satisfying the overriding need in the individual. Some individuals have a high need for power (n/PWR), others have a high need for affiliation (n/AFF), while others have very high needs for achievement (n/ACH). Individuals with high needs for achievement are characterized by a tendency to set moderately difficult goals, a strong desire to assume personal responsibility for work activities, a single minded focus on accomplishing a task, and a strong desire for detailed feedback on task performance. The need for affiliation involves a strong attraction to other individuals in order to feel reassured and acceptable. Individuals with a high need for affiliation are characterized by a sincere interest in the feelings of others, a tendency to conform to the expectations of other especially those whose affiliations they value, and a strong desire for reassurance and approval from others. The need for power manifests itself in the desire to influence others and to control one’s environment. Individuals with a high need for power seek leadership positions and tend to influence others in a fairly open, direct manner. PRACTICAL METHODS OF MOTIVATING WORKERS The theories outlined above provide a sound basis for understanding motivation. Nevertheless, the human resource managers must devise more practical approaches to motivating the workers. Some of the approaches are briefly listed below.             The use of participative or consultative management styles. Adopting an open door policy. Having managers who are available, understanding, and able to assist employees through activities such as counselling. Availing recreational facilities for employees. Collective goal setting. Good working conditions. Promotion from within Employees made to feel valued. Interest free loans or loans with low interest rates. Status enhancement Positive communication Recognition of individuals and their contributions to the firm.

COMMUNICATION Communication is a very important subject to any manager. Managing is getting things done through others, a task that requires the manager to communicate with other people. To communicate is to make known, to impact or to transmit information. Communication forms the bridge between managers and employees. Managers must receive and give ideas, reports, and instructions; explain problems; give demonstrations; and also keep in touch with its relevant environments (customers, suppliers, dealers, regulations etc). Talking, listening, attending meetings, reading and writing occupies most of the manager’s time. 118

Communication is needed to establish and disseminate goals of an enterprise, develop plans for their achievement, organize human and non human resources, select, develop and appraise staff, control performance, and direct, lead and motivate employees. For communication to be effective the message sender must have a good knowledge of the receiver. Overestimation of the capability of the receiver ( e.g. his/her intelligence) will lead to misunderstanding of the message. Income, social status, responsibilities and position of the receiver all affect and influence the way a message is perceived.

A SIMPLE COMMUNICATION MODEL NOISE SENDER

MESSAGE
FEEDBACK

CHANNEL

RECEIVER

Types of Communication Communication in an organization is either external or internal. Internal communication takes place between people in the organization and others outside the organization. All organizations generate internal communication and the communication flow is multidirectional. It could either be: a) b) c) d) e) Vertically upward – from lower to higher level through the chain of command. Vertically downward – from higher to lower levels. Direct horizontal – when an individual from one department communicates to another in another department but at the same organizational level. Indirect horizontal – occurs between people of different organizational levels and in different departments. Depending on the nature of the firm zigzagging or diagnosing of messages cannot be ruled out.

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It can easily be altered or adjusted to suit the receiver. channel. It has the advantage of providing records and references. memos. eye movements. threat and fear Insufficient period to make adjustments for change Noisy environment. manuals or minutes. These groups include customers. Most communication in organizations is oral. and distance maintained among many others. body gestures. It provides immediate feedback and unclear issues can be classified immediately.The firm also invites communication with groups outside and as the organization grows external communication grows. Communication barriers can arise from sender. competitors etc. suppliers. government.  Employee counselling programs Downward communication 120 . Forms of communication Written communication is in form of letters. receiver or from the surroundings. Non Verbal Communication includes facial expressions. Upward communication This is communication of subordinates with the managers and it continues up the organizational hierarchy. It can be effected through:  Face to face contacts  Meetings with supervisors  Special organisation wide elected councils that meet with top management periodically  “Speak up” programs where employees are given a telephone number to call  Anonymous complaint boxes  Annual employee meetings  Grievance procedures  Morale questionnaires  Exit interviews  Open door policy  The labour union  Grapevine  The ombudsperson. They include:           Lack of planning to communicate Semantic distortion (language) Poor expression (language) Loss of transmission Poor retention Poor listening Hasty (premature) evaluation Distrust.

Referent/charismatic power is derived from the desire to be like the power holder while expert power is the power of knowledge. expert. Krech et al identified 14 functions performed by leaders whereby the leader can be an executive. it is based purely on position and not necessarily on the ability to influence. In an organizational setting. an external group representative. being assertive and confident. It is the art or process of influencing people so that they will strive willingly and enthusiastically toward the achievement of group goals. firing. They are also aware that human beings have different motivations at different times and at different situations. There are a number of approaches to leadership. managing director and so on. leaders should have the ability to inspire and to act in a manner that will develop a climate conducive to responding to and arousing motivations. managers can communicate to subordinates through:  The chain of command  Posters and the bulletin boards  Company periodicals  Letters to employees  Employee handbooks  Information racks  A loudspeaker system  Pay inserts  The grapevine  Annual reports  Group meetings  The labour union LEADERSHIP Leadership is an important aspect of human resource management. Such power could be held by the human resource manager. It holds that the skills of leadership can be learnt.This is communication flows from people at higher levels to those at lower levels in the organizational hierarchy. decisiveness. There are five sources of power for leaders. or silent treatment among other methods. as well as intelligence and the ability to conceptualize the activities of the whole organization The functional or group approach focuses on the functions of the leader. planner. it is where the leader can coerce subordinates through demotion. natural energy and enthusiasm. Moreover. Examples of rewards are pay rises and favourable job assignments. Good leaders use their power effectively and in a responsible manner. Legitimate power is associated with the leader’s position in the organization. It can be done using oral or written means. developed and perfected. policy-maker. The “great man theory” advocates for leaders being born. ability to manage change. Coercive power is the opposite of reward power. 121 . marketing manager. Reward power stems from the perception that the leader is able to reward another individual. The traits theory holds that effective leaders are associated with the ability to supervise others. Leaders should not just push people but they should cultivate the free willingness among the people.

Armstrong. but is readily available if help is needed. and as a scapegoat to accept blame in the case of failure. leaders are risk takers who establish human relationships based on trust. setting examples. consultative. The leadership functions are shared with members of the group and the manager is more part of a team. unitary. control rewards or punishments. Mathis and Dr. Dr. they also are learners who are aware of themselves. defined sense of purpose.A. Handbook of Human Resource Management Practice (8th edition) The Bath Press Ltd Great Britain. The group members have a greater say in decision-making. bureaucratic. John H.controller of internal relations. to allow them freedom of action and not to interfere. leaders are keen to motivate and inspire other people to achieve their goals. determination of policy. It is also known as the contingency approach.  A genuine laissez-faire style is where the manager observes that members of the group are working well on their own. procedures for achieving goals. are effective communicators. Broad classification of leadership styles There are many dimensions to leadership and many possible ways of describing leadership style. charismatic.  The authoritarian (or autocratic). work tasks and relationships. The style of managerial leadership towards subordinate staff and the focus of power can be classified within a broad three-fold heading. BIBIOGRAPHY 1. substitute for individual responsibility. an arbitrator and mediator. and all interactions within the group move towards the manager. and remove obstacles. a father figure. Robert L. The manager alone exercises decision-making and authority for determining policy. implementation of systems and procedures. This is where the focus of power is with the manager. persistent and hardworking. 122 . participative and abdicatorial. dictatorial. 2. HR Management – Strategies and Environment (9th edition) University of Nebraska – Lincoln. respect and care. a symbol of the group. help them achieve the goals. M. Jackson. The manager consciously makes a decision to pass the focus of power to members. giver of rewards and punishment. for example. such as. The path goal theory says that the main function of a leader is to clarify and set goals with subordinates. leadership is affected by the situation from which the leader emerges and in which he or she operates. Futrell (2000) suggests that leaders have a strong. According to the situational approach. benevolent. an ideologist. they love their work and inspire others.  The democratic style is where the focus of power is more with the group as a whole and there is greater interaction within the group.

Inequity in social exchange”. and The Further Reaches of Human Nature 7. Scarpello & Ledvinka. Abraham Maslow Toward a Psychology of Being Motivation and Personality (1st & 2nd Edition). Adams.H.H (1964). Ch.121-125. 123 . (1943) “A theory of human motivation”. resources. beliefs. Personnel Management and Human Resource Management (3rd Edition).F (2000). Guensey Press Co..S (1965). Advances in Experimental Social Psychology.14 CONLICT MANAGEMENT Chapter objectives The objectives of this chapter are to:  Differentiate the negative and positive impacts of conflicts  Understand the sources of conflicts among employees in the organization. Cole Management Theory and Practice. Conflicts occur when individuals or groups feel that other individuals or groups have frustrated or are about to frustrate their plans. Work and Motivation. (2nd Edition). or activities. proposals. Decenzo.A. C. 10. New York. A. ideas. (ed. A. J. pp. New York. 8. L. Sales Management. Prentice Hall. Introduction Conflicts are common features of many organisations. and Robbin. whether it is between labour and management. individuals or nations can be costly to individuals and to organisations. July. Futrell. The consequences of conflict and failed negotiations.3. 9. D.). Boston. V.  Explain the strategies that can be used to resolve conflicts among employees in the firm. Dryden Press. Orlando. in Berkowitz. London. Wiley. Vroom. Ltd. Psychological Review. Channels Islands 5. 2. groups. G. P. goals. Maslow. S. Personnel /Human Resource management (2nd Edition) PWS-Kent Publishing Co. Academic Press. 6. interests. 4.

Informational deficiencies can also be a source of conflicts. Nevertheless. Sometimes the activities of one department depend on the activities of another department. It should be understood that conflicts are not necessary bad in an organizational setting. Role ambiguity is also a significant source of conflict. feelings or attitudes are incompatible with those of others. Incompatibility can lead to goal conflicts which occur when a person or a group desires a different outcome. Differences in perceptions and expectations result in different people attaching different meanings to the same stimuli. Sources of conflicts The sources of conflicts are as varied as the types of conflicts that exist. The consequences of conflicts can be better ideas generated for the way forward. Behavioural conflict occurs when one group or person does something which is unacceptable to others. It is common to find individuals with acute and almost irreconcilable personality differences. Personal differences can also lead to affective conflicts which occur when one group’s emotions. role incompatibility. Related to role incompatibility are departmentalization. It can be viewed from the individual. Similarly. avoid a win-lose approach to solving it. performance standards. Role incompatibility conflicts are similar to conflicts arising from personal differences or information deficiencies. and violation of territory. informational deficiencies. a climate of mistrust and suspicion can also be developed and even some employees may decide to “eliminate” others. and clarification of individual views. extreme levels of conflicts can make some people feel defeated or demeaned. the marketing department relies on the production department for the goods to be produced before they are passed over to the customers. specialization. level of education. The rate of labour turnover can increase as other employees avoid teamwork and concentrate on their narrow interests. It is also known as role conflict and occurs when a person occupying a certain office exhibits behaviour which is contrary to what is expected. or organizational level. For example. Inter-group discussions should be encouraged. This often leads to a cognitive conflict which is a situation when a person or a group holds ideas or opinions that are inconsistent with those of others. group. breadth of experience. if reward and punishment systems are perceived 124 . Generally speaking there are four broad sources of conflicts namely personal differences. Conflicts based on misinformation or misunderstandings tend to be factual hence clarifying previous messages or obtaining additional information generally resolves the dispute. It is based on the incompatibility of goals and arises from opposing behaviour. Many departments tend to concentrate on the achievement of their own particular objectives. This creates potential for conflicts. and so on. and environmental stress. Personal differences imply that individuals are different in terms of their cultural and family traditions. When the conflict occurs.Conflict is a behaviour intended to obstruct the achievement of some other person’s goals. long standing problems unveiled.

In resource distribution. the chair sat on and the room worked in. In due process non-action. The accommodating approach satisfies the other party’s concerns while neglecting one’s own. Strategies for resolving conflicts in organizations. and reduce participation in decision making. This can be achieved through the use of formal authority. The main strategies used include forcing. The stress can be induced by resource scarcity and uncertainty. And people tend to become attached to their own “territories” within the work organization. avoiding. Environmentally induced stress can also be a major source of conflicts. physical threats. In other cases. Scarcity tends to lower trust. It can also take the form of Character assassination in which attempts are made to discredit the person concerned and to distance him or her from others in the group. The person affected can respond by taking legal action or damaging the image of the organization. compromising. increase ethnocentrism. managers should use their imaginations and 125 . The avoiding response neglects the interests of both parties by sidestepping the conflict or postponing a solution. This should be used carefully because the anger of the employees can build up. complicated. the conflict resolution procedure is made long. Examples of territories are the area of working. if violated. The greater the limitation of organizational resources. and risky for the affected employees. then a conflict could arise. The strategy used to manage or resolve the conflict will depend on the nature and source of conflict. It can also take the form of administrative orbiting in which the management adapts the policy of requiring more information in order to solve the conflict. The aim is to wear down the dissatisfied employees while at the same time claiming that the resolution procedures are open and available. then the potential for conflict is high.to be based on keeping up with performance levels especially when the performance expectations are very high. The forcing strategy seeks to satisfy one’s own needs at the expense of the needs of other individuals. The compromising response is an attempt to obtain partial satisfaction for both parties. manipulation ploys. and ignoring the claims of the other party. It can take the form of non action whereby a manager strongly believes that by ignoring the problem it will eventually disappear. and collaborating. costly. the greater the potential for conflict. the type of clients dealt with. accommodating. The problem with this approach is that others may take advantage of you which also lowers your self esteem. parking slots. The problem with this conflict resolution approach is that it breeds hostility and resentment. the treatment of workers by management is biased or inequitable. this can lead to tension and conflict. Some managers keep some of the organizational information secret (such as pay) as a way of reducing conflict.

more challenging work. Ensuring that rules and regulations are enforced and followed. job evaluation. Counselling employees so that they learn to control issues that could lead to conflicts. role definitions. And in situations where financial resources are limited.initiative to help overcome conflict situations. Use of integrators which perform the boundary spanning role between groups. recruitment and selection. 2001). The collaborative approach is an attempt to address fully the concerns of both parties. and performance standards which helps to avoid misunderstandings and conflict. Strategies for minimizing conflicts in organizations Prevention is always better than cure. Limiting inter-group interactions especially when the groups don’t depend on each other directly or when they are likely to conflict. Personnel policies and procedures should also be just and equitable especially in the areas of job analysis. It is recommended that managers emphasize organization. The implication is that managers should seek to prevent conflicts from occurring. It is a win-win strategy and it can take the form of clarification of goals and objectives. Third party consultation through people who understand human behaviour. This may be difficult but it is possible. 126 . a more participative and supportive style of leadership and managerial behaviour is likely to assist in conflict resolution. Confrontation of the affected persons and negotiation of the conflict. increased delegation or empowerment. Suggestions for preventing the occurrence of conflicts include the following ( Okumbe. Rotation of members. Involving employees in decisions that affect them and which may bring a change on the status quo. flexible working hours and attending courses or conferences. Encouraging team building exercises that involve all the departments so that each department can learn to appreciate the other departments. By so doing they will not resist the change strongly and probability of conflicts will be minimized. greater attention should be given to non monetary rewards such as job design. Moreover.           Physical separation of the affected employees.wide goals. and reward and punishment systems.

 Where the problem still persists. An employee may then have grievances against another employee. After reading this chapter. Often disagreements occur between or among people.  Appreciate the importance of managing employment relationships. Sometimes the problem or grievance may be affecting many employees who then opt to join labour unions. the union steward discusses the grievance with the supervisor's manager. the shop steward informs the union grievance committee which discusses the grievance with the unit plant manager or the employer’s human resource department 127 . a supervisor.  If the problem is not solved at this level.CH. 15: EMPLOYEE RELATIONS Chapter objectives. it is expected that the reader will be able to:  Explain the grievance settling procedure  Understand why employees join labour unions  Discuss the collective bargaining process  Analyse the different types of strikes and the conditions under which they occur. Introduction Working with other people in an organisation has many challenges. The procedure is:  The employee should discuss the grievance with the immediate supervisor  The employee then discusses the grievance with the shop/union steward. team leader or even the whole organisation. Grievance settling Procedure: This is a formal communications channel designed to settle a grievance as soon as possible or immediately they arise.

Opportunity to Advance – employees want to be certain that their organisations will consider them for promotion to higher paying. routine tasks. he/she can take legal action. However. she/he may become bored and feel they have no identity hence they seek unionisation. Need to be recognised –jobs well done deserve recognition. educational programs. Some of them are briefly discussed below. protect. A labour union or trade union may also be defined as an organisation of workers formed to promote. Unions meet these needs by offering an organisation of people with common interests. they may experience some dissatisfaction that may make them to join labour unions. and political interests of its members. unions build a strong bond 128 . Importance of the Work – work itself is important to employees.   The representative of the national union discusses the issue with the company general manager The final step may be the use of an impartial umpire or arbitrator for ultimate disposition of the grievance Where an individual feels that a union is not doing enough. d. The aim of joining the labour union is to correct a gap which the employees feel that the management is not ready to correct under normal circumstances. Need To be respected – in some cases supervisors may be treating employees in too harsh and authoritative ways leading them to seek refuge in trade unions. A trade union is an organisation that represents employees' interests to management on issues such as wages. Workers who do not receive recognition so as to reinforce positive behaviour may join unions. f. as times go by. Job Security . c. Human resource managers should continually adopt job enrichment programs to ensure the jobs of employees are challenging. and other activities designed to involve members. The dominant interest with which the union is concerned is economic. b. h. Opportunity to be heard – a union provides a vehicle for employees to express their dissatisfactions and disagreements with a particular job matter. Good Working Conditions – a safe and healthy place to work coupled with high quality standards in both product and job environment is important to workers. e. social events. and improve through collective action. Where an employee does repetitive. economic. working hours. Why Employees Organise Labour or Trade Unions: Employees join trade unions for a variety of reasons.Employees want to be confident that the jobs they have today will definitely exist in the future and that they will be treated fairly and will not be discharged without just cause. g. The employees want to feel that their efforts are making a relevant contribution to the organisation. hours. In this area desires and demands for improved wages. Need to belong – people need to associate with other human beings and feel they belong. more responsible jobs. and working conditions. a. and working conditions are foremost. the social. and exemplary performance calls for an occasional word of thanks. Labour/ Trade Unions Employees may highly appreciate their jobs for quite sometimes. Through meetings.

Where management and union see each other as enemies. Preparation: Both parties must prepare themselves for the negotiation. It is a give-and-take process between representatives of the two sides. These may lead to a bargaining disagreement or impasse 4. COLLECTIVE BARGAINING Whenever there are disagreements or conflicts between union members and a firm’s management.brotherhood. hours and other terms and conditions of employment. these are solved through the collective bargaining process. Initial demands 3. The management must especially prepare itself by: a. Many workers join a union because it gives them a means of expressing their leadership aspirations. the collective bargaining process can lead to conflicts while in a situation where both parties view each other as friends. These are listed below. Settlement and contract signing. Money – Unions negotiate for the employees to receive a fair day's pay for a fair day's work.many individuals use the trade union movement to gain political mileage. the process may lead to collusion THE PROCESS OF COLLECTIVE BARGAINING: The representatives of the management as well as those of the trade union go through 4 steps in the collective bargaining process. 1. i. Indeed financial incentives are probably the greatest motivation for employees when considering entering into trade unions j. Preparation 2. Political Gains. Collective bargaining is thus the process whereby representatives of management and those of workers negotiate over wages. The Issues Discussed Include:  Discharge of Employees  Job Security  Grievances  Work Schedules  Retirement and Person Coverage  Vacations  Christmas Bonuses  Safety Rules  Profit Sharing Plans The attitude of management toward unions is one major factor in determining the relationship between union and management. Approve the plan for negotiations with top management 129 . Continued negotiations.

This depends on economic factors. However. union members refuse to work in order to put pressure on an employer. e. and they reach an agreement on the essential issues. Both strikes and lockouts are forms of pressure on the other party. g. The way initial demands are presented will determine the direction of the negotiations to follow.here a few representatives from each side hold a secret meeting prior to the official opening of the negotiations.g. Conduct an audit and analysis of grievances Review the contracts made with the workers Conduct wage and benefit surveys of competitors Designate a bargaining team Plan for contingencies e. then strikes and lockouts may occur. d. an employer put economics pressure on union members in the hope that they will make concessions and support a contract agreement. Types of Strikes: 130 . c. management shuts down company operations to prevent union members from working. management may respond by hiring replacement workers or may operate the company by using supervisors and managers to fill in for striking workers. socio-demographic factors such as how easy it is to get other workers. There are a number of bargaining tactics to use. f. An example is a case where a 50% salary increase has been awarded and the union tries to negotiate for at least 80% salary increase. It is important to determine who has the stronger bargaining power. Often the striking union members picket or demonstrate against the employer outside the place of business. Continuing Negotiations: After opening positions have been taken. By striking the union attempts to pressurise management into making some concessions and signing a contract. Bargaining Impasse: Where the labour and management do not reach agreement on issues. During a strike. and name-calling before they all settle for common agreements. Bluffing . and the legal environment. This action may also avoid possible damage or sabotage to company facilities or injury to employees who continue to work. When the negotiations begin these individuals put on a sham battle including table thumping. 3. each side attempts to determine what the other values highly so that the best bargain can be struck. h. In a lockout. strikes etc Brief directors Designate date and time for bargaining with workers 2. By locking out workers. for example: Game playing . Initial Demands: Typical bargaining includes an initial proposal of expectations by both sides.b.here the negotiators attempt to gain a little more than they are willing to finally settle for.

In conciliation a third party attempts to keep the union and management negotiators talking so that they voluntarily can reach a settlement. Unfair Labour Practice Strikes . the two sides usually return to their respective members to determine if what they have informally agreed on is acceptable to them. Arbitration: This is a means of deciding a dispute in which negotiating parties submit the dispute to a third party to make a decision. In mediation a third party assists the negotiators in their discussions and also suggests settlement proposals. even though the first union has no disagreement with the employer During times of strikes the employer should take safety precautions by:  Making sure the plant is left in good physical condition  Explaining the employer’s side of the issue to the employees  Giving a press statement  Notifying suppliers and customers  Notifying the appropriate mediation services  Determining to what extent non-union personnel will be maintained on the working staff  Paying off striking workers for work completed in the past Conciliation or Mediation: Conciliation or mediation occurs when an outside individual attempts to help two deadlocked parties continue the negotiations and arrive at a solution.occur when one Unions member walks out to force an employer to assign work to them instead of to another union. Jurisdictional Strikes .occur during the life of the collective bargaining agreement without approval of union leadership and violate a no-strike clause in a labour contract.express one Union's support for another involved in a dispute. Wildcat Strikes . If approval is voted. the agreement is then formalised into a contract. Sympathy Strikes . 4.occur when union members walk away from their jobs over what they feel are illegal employer actions such as refusal to bargain.Economic Strikes . Strikers can be discharged or disciplined.occur when the parties fail to reach agreement during collective bargaining. Settlement & Contract Agreement – after an initial agreement is made. Either an individual or a panel of individuals can conduct Arbitration. The agreement also contains language on the duration of the contract. 131 .

A healthy person is one who is free from illness. The main purpose of effective safety programs in organisations is to prevent work-related injuries and accidents. REASONS FOR SAFETY PROGRAMS: Safety programs are undertaken for three fundamental reasons: Moral . In many organizations. the management and the employees neglect the health and safety aspect. Safety refers to protection of the physical well being of people. 16: EMPLOYEE HEALTH AND SAFETY Chapter objectives A reader who has successfully read this chapter will be able to:  Differentiate employee health from employee safety  Explain the differentiate sources of accidents in the workplace  Analyse the critical health issues that human resource managers have to deal with  Appreciate the importance of employee health and safety. Financial . The managers must also ensure that the employees are safety conscious and are encouraged to maintain good health.managers undertake to prevent accidents so as to minimise the pain and suffering the injured worker and his family are exposed to as a result of the accident. Nevertheless. These include:  Payment for settlements of injury or death claims  Legal fees for defence against claims 132 . Health management practices in organisations strive to maintain the overall well being of individuals. and supervisors can receive jail sentences if found responsible for fatal accidents. Moreover. Legal . Definition of Terms: Health refers to a general state of physical. ignoring this element can lead to a lot of pain and suffering to organizational members and to their dependants. the image of the organization can be damaged following an unfortunate event. mental and emotional well being.Organisations are subject to fines.the cost to the company of even a small accident can be quite high. Health & Safety Policies focus on the safe interaction between people and the work environment.CH. Introduction The management of every organisation has a responsibility to ensure that the workplace is free from unnecessary hazards and that conditions surrounding the workplace are not hazardous to the physical and/or mental health of employees. Its importance cannot be overemphasized. injury. or mental and emotional problems that impair normal human activity.

startling. disconnecting them  Using unsafe equipment or unsafe use of equipment  Using unsafe procedures in loading. mixing. quarrelling. on or around machines or equipment  Unsafe storage . inability to do the job. teasing.insufficient air change. impure air source  Unsafe conditions refer to the mechanical and physical conditions that cause accidents. combining  Taking unsafe positions under suspended loads  Lifting improperly  Distracting. They include:  Improperly guarded equipment  Defective equipment  Hazardous arrangement or procedure in.either too fast or too slow  Making safety devices in operative by removing. overloading  Improper illumination .glare. horseplay  Carelessness. daydreaming. adjusting.    Costs of rescue operations Loss of function and operations income Training costs for replacements Increased insurance costs BENEFITS OF SAFETY PROGRAMS: Tangible benefits of a well-managed safety program include:  Reduction of insurance premiums  Lower absences  Savings of accident and litigation costs  Fewer wages paid for lost time  Less expenses in training new workers  Less overtime  Meeting the demands of clients  Higher productivity  More motivated workforce CAUSES OF ACCIDENTS: Unsafe conditions (of one sort or another) are one main cause of accidents.congestion. intoxication. Human Causes: People cause accidents by unsafe acts such as:  Failing to secure equipment  Failing to use safe attire or personal protective equipment  Throwing materials  Operating or working at unsafe speeds . abusing. insufficient light  Improper ventilation . placing. or other human deficiency PREVENTIVE MEASURES FOR ACCIDENTS: 133 .

Protection People should be provided with protective equipment where necessary. Protective maintenance of machinery can avoid fires. A hazard is anything that can cause harm (e.g. and noise mufflers. Selection and Placement Screening out accident-prone persons can reduce accidents before they are hired e. similarly the position of the operators relative to the control devices will affect the amount of stooping.g. This can be done through methods such as use of better alternatives. etc) while a risk is the chance. "we have a zero tolerance for accidents". Their task is to remove or reduce physical hazards. whether large or small. safety issues and preventive techniques should be discussed especially for new employees. if the policies are not enforced.  People who are visually impaired  Emotional stability and personality tests  Measures of muscular co-ordination 134 . twisting. explosions. When equipment is being ordered. the type that will best minimise accidents rates should selected e. use of barriers.Education Safety education is aimed at inducing people to 'think safety' and is necessary to create safety awareness. which has specific lighting features. of harm actually being being done by the hazard. Equipment design can also consider those elements about the process than can reduce operator fatigue.  Skill Training When employees undergo training. No smoking signs should be obeyed. the employer may be liable for any injuries that occur Reducing Unsafe Conditions Reducing unsafe conditions is primarily in the domain of safety engineers. and daydreaming. Engineering Engineering methods can be used to prevent accidents through both the design of the equipment and the design of the jobs themselves. tension etc . one.g. lifting heavy objects. safety glasses. and personal protective clothing. boredom.factors that can do increase accident rates Regulation Enforcement The safety rules and regulations should be enforced. hard hats. Regularly conducting safety and health inspections – risk assessments are concerned with the identification of hazards and the analysis of the risks attached to them. warning systems. chemicals. electricity. Examples are safety shoes.g. gloves. Popular methods for creating safety awareness include:  Exhibiting easily visible signs that proclaim safety slogans  Placing articles on accident prevention in organisation newsletters  Exhibiting signs e. and oil leakage. working on roofs. safety helmets always worn in the plant.

as they have to do the work of their alcoholic workmate. These problems can be solved by:  Disciplinary measures which include oral and written warnings. and alertness. headache. The effects of alcoholism on the worker and the work can be severe and include the following. Stress: In order to manage stress effectively. it is important to understand what it is. people feel completely bored and lack any inclination to act. The individual may experience shock or confusion and his/her body responds by mobilizing the energy resources including the heart rate. irritability and so on. Alcoholism and Drug Abuse: Alcoholism is a situation whereby employees have excessive drinking habits while common drugs abused by some employees include Marijuana and Cocaine. These can lead people to other problems like 135 . This should be done as the last result. regression (adopting a behaviour that was successful at some earlier time). and fixation (persisting in a response regardless of its effectiveness). Where the stress does not end immediately. In the absence of any stress. repression (denying that the stressor exists). When the stress is prolonged.  The quality and quantity of the employees work can decline sharply  "On the job absenteeism" occurs as efficiency declines  Accidents on and off the job increase  The morale of other workers is affected. But when the stress level rises to the point where an individual cannot cope with it. Stress is not intrinsically bad.  In house counselling  Referral to an outside counselling agency 2. there are harmful results. It important to manage the stress before it reaches the harmful level. Thus stress can produce severe physical or mental symptoms such as tiredness. and mental disorders. withdrawing physically or psychologically from the stressor. anxiety. blood pressure. which threaten their well being. the individual moves to the second stage which is the resistance stage.  Discharging the affected person. stress can be defined as a strain experienced by an individual over a period of time. This involves developing defence mechanisms which include aggression (attacking the stressor directly). Normally stress progresses through three stages before it becomes harmful. A certain level of stress is manageable as it prepares individuals to deal with difficult situations. It is called the alarm stage. The first stage is when the individual is first exposed to the stressful event. which impairs the ability of the individual to perform his/her role effectively. then exhaustion may result leading to negative effects such as high blood pressure.HEALTH PROGRAMS 1. Human resource managers are also expected to deal with these issues.

or they may fear changes that may arise from organizational changes such as restructuring. excessive worry. They are actually FEARS (false evidences appearing real!). Physiological stress manifests itself in pain or physical discomforts like headaches.  Get withdrawn from other people. Anticipatory stressors are unpleasant things that have not happened but may happen. planning. time.  Overestimate how fast time is passing (hence they often feel rushed). Causes of Stress: Different authors have tried to establish what causes stress in individuals. The small wins strategy is the work of Weick (1984). so that complexity and nuisances are missed.  Consult and listen to others less  Rely on old habits to cope with current situations.  Have less ability to make fine distinctions in problems. and generating new ideas.  Have less ability to generate creative thoughts and unique solutions to problems. Effects of stress to managers According to Whetten and Cameron (2005) when managers experience stress. the multiple small gains eventually mount up.  The manager becomes less effective in dealing with employees and is also inefficient at listening. These types of stressors can be reduced or eliminated through the use of the small wins strategy and goal setting. making good decisions. generating a sense of 136 . Although each individual success may be relatively modest when considered alone. they tend to:  Selectively perceive information and see only that which confirms their previous biases  Become very intolerant of ambiguity and demanding of right answers  Fixate on a single approach to a problem. the main causes of stress can be categorized into four namely anticipatory. fatigue.  Adopt a short-term perspective or crisis mentality and cease to consider long term implications. muscular tension. People may fear losing their jobs or their friends losing their jobs. solving problems effectively.  Victimize employees easily  Become trivial on issues. encounters. and hypertension and so on. and depression. All these discomforts can be detected early and treated. and situational causes. or downsizing.heavy drinking or excessive smoking which set up a vicious cycle by creating even worse physical problems. Nevertheless. Ideally there are two types of stress namely psychological stress and physiological stress. Psychological stress manifests itself into feelings of emotional distress such as anxiety. It means a series of tiny but definite changes made in a desired direction.  Easily agitated by others.

Goal setting implies that an individual must set long term and short term goals. issue conflicts (differences that exist over how to define or solve a problem). This is because when this is not the case. one is able to accomplish more in a typical workday. They can be eliminated through efficient and effective time management as well as by delegating. Encounter conflicts can be minimized by collaboration and team building as well as emotional intelligence which is the ability to manage one’s emotions and to manage his/her relationship with others. talking on the phone and so on. instructions etc. Encounter stressors result from interpersonal interactions. must learn to manage their time properly.  Have a place for everything and keep everything in its place. These interactions could lead to role conflicts (where roles being performed by group members are incompatible). Time stressors arise from having too much to do in too little time. All individuals. Thus there is need for advance planning each day so that one does not just rely on memory.  Save your best time for important matters. it also eliminates feelings of stress and overload that can destroy personal accomplishments and satisfaction. It also means that results rather than methods are the focus of time management strategies and people have a reason not to feel guilty when they must say “no”. Managing time effectively means that individuals spend their time on important matters. 137 . and urgent tasks. brochures. newspapers. and one may be tempted to interrupt the current task to do something else. Each day you should focus on important tasks and then deal with urgent tasks. not just urgent matters and that people are able to distinguish clearly between what they view as important and what they view as urgent. magazines. books. Some rules that can help someone to manage their time more effectively include the following:  Read selectively.  Make a list of things that are to be done within 5 or 10 minutes which time would otherwise be spent doing nothing as it may be falling between meetings. and interaction conflicts (where individuals fail to get along because of antagonism). or to accomplish important/nonurgent tasks. important.  Reserve some time during the day when others don’t have access to you and spend this time either thinking. By managing time effectively.  Do one important thing at a time but several trivial things simultaneously.  To avoid feeling overwhelmed by large.  Determine the critical 20% of your tasks which produces 80% of your desired results.  Prioritize your tasks. more time is required to find something when it is needed. Use the rest of the time to do routine work. events.  Make a list of things to accomplish each day. it is advisable to divide up large projects.momentum towards the desired goals. This applies mainly to individuals who find themselves with too much material they must read such as mail. whether managers or ordinary employees.

Don’t worry about anything on a continuous basis. Reach closure on at least one thing every day. 6. planning. It is estimated that up to 20% of an average person’s time is spent in waiting. Specify a certain period of time during the day to do busy work. Go to subordinates offices for brief meetings. 8. Set deadlines because work always expands to fill the available time. preparing. Have a place to work uninterrupted in order to meet deadlines. 5. stick to them. It also keeps the mind free and energy is focused on the present task. 14. or just to relax. During such a time. Prepare minutes of the meetings and follow up. Schedule some personal time which can be used to plan. take stock. outlining. and give others credit for their success. 13. An example would be an unfavourable working 138 . it takes less time and effort than if they had been put off. Do something definite with every piece of paperwork handled. and keep track of time during meetings. prioritize. Hold short meetings while standing up to ensure the meeting is short. 7. Managers can become more efficient at time management by following the rules below: 1. Have agendas. Hold routine meetings at the end of the day when energy and creativity levels are low and when the quitting time ensures that the meetings are brief. 15. Be alert for new ways to improve on your management of time. Insist that subordinates suggest solutions to problems so that the subordinates do not delegate to the manager. 3. Don’t overschedule the day. or something else that could help you accomplish your work. Cancel meetings once in a while especially where the meetings are unnecessary. Set a time limit for every activity. meditate.          Don’t procrastinate. Meet visitors in the doorway in order to control your time and the use of the office space. rehearsing. 12. 2. Keep track of your time by dividing your activities into time logs to be accomplished within specified time periods. one can try reading. This helps to maintain consistency in activities and tasks and serves as a constant reminder. 10. Write down long term objectives. 11. Delegate work. Do something productive while waiting. Keep the workplace clean. pray. Have someone else answer telephone calls and scan e-mail. 16. identify the amount of initiative recipients should take with the tasks they are assigned. reviewing. 9. This ensures that one does not focus on one thing for too long. By doing certain tasks promptly. Situational stressors arise from the environment in which a person lives or from an individual’s circumstances. 4. Start meetings on time.

           139 .some jobs take so much out of the jobholders such that the job holder is drained of their physical energy and exhausted Interpersonal conflicts . Work role problem . These stressors can be reduced through work redesign techniques such as job enrichment. financial problems and so on can interact to make work conditions more stressful.e. domestic problems. combining tasks. Work overload . establishing customer relationships.stress may arise where there is role conflict (i. this can give rise to stress Commuting or travelling through heavy traffic or using overcrowded trains to and from work can be stressful Personal circumstances .personal and emotional conflicts with fellow workers can lead to stress Poor communications .individuals are at risk from stress if they are unable to cope with the work targets set for them. when the individual is called upon to perform different roles at the same time) or role ambiguity (where a person does not know what is expected of him/her in the work situation) Excessive demands of work . They sometimes spend the idle time talking and analysing problem after problem. Other scholars have tried to classify the sources of stress using the following approaches: Working conditions .if an individual has too many bosses all calling for attention for their instructions. and open feedback channels. Conflicting loyalties .outside work circumstances/conditions like divorce.pressure of time at work and high work demands with a low level of influence and control over the work situation can contribute to high stress levels.environment. they may be stressed because they may fear the closure of the business. This gives them more chances to be stressed. Also the fears of feeling trapped in a dead end job with little hope of career development can be stressing. Work under load.a lack of good communication can give arise to frustration and feelings of isolation at work and this can cause stress Fear of change – job insecurity or fear of the effects of new technology can give rise to stress.when employees have very little work to do. Good targets should be challenging but achievable.

They prefer co-operation to conflict. Such a balance ensures that an individual does not concentrate on just a single or few aspects of life. relatives and other social groups that can cushion an individual against some negative eventualities. and deep relation techniques. the small wins strategy. yoga. In pursuit of these standards. They don't create stress-inducing situations and so they are less likely to suffer from stress. social. psychological and social resiliencies.underemployment or retirement can cause depression. Boredom . intellectual. Personality Type B people are able to relax. family. they are aggressively competitive and extremely hardworking. Type A people are work oriented (workaholics) and have few interests outside the work environment itself. An individual should strive to achieve a fair balance among life’s activities which can be categorized into physical. There are three major aspects of resiliency namely physical. They tend to be inflexible both in their way of working and their view for the structure and functions of the organisation. it may be necessary to develop resiliency which is the ability to withstand the negative effects of stress. They are not so openly ambitious but they achieve the development of their careers through proper use of their talents. work and cultural activities. they don't trust subordinates to do the job properly hence they find it difficult to delegate. which leads to stress. The physical resiliency is achieved through cardiovascular conditioning regular physical exercises and proper dieting that includes eating a variety of foods and maintaining optimum weight among others. The psychological resiliency can be achieved by developing hardy personalities. This throws extra work pressure on them. These approaches are also good at reducing stress among individuals. and stress which is contrary to the general perception of overwork being the prime cause. Such people are likely to conflict with other managers and are impatient with subordinates who criticize superiors. and biofeedback among others. Generally people can be categorized into personality types A and personality types B. spiritual. They have empathy in that they can put themselves in other people's shoes and take account of how others feel. Because of their high personal standards. 140 . Deep relaxation techniques include meditation. friends. Social resiliency involves developing close social relationships with family members. In situations where the stress cannot be eliminated. apathy. autogenic training or selfhypnosis. Personality Type A refers to those people that set prestigious and high personal goals and career objectives. they are flexible and more adaptable. The personality class in which one falls can determine their response to stressful situations. they also expect their subordinates and superiors to behave in this way. The characteristics of Type A people are likely to exhibit or precipitate the very situation.

especially when that stress is combined with becoming preoccupied with attaining unattainable work-related goals.exercise helps to release the stress of the day. Perhaps.g. somebody has gone through a worse situation than the one being faced by the employee  Relaxing and exercising . job rotation). offer the appropriate training to the employees. deciding on priorities. and having an increasing affinity for smoking. This includes setting realistic goals. This will enable them to get advice and opinions concerning their situations. 3. give the necessary counselling to the employees. getting no meaning in the activities that someone worked so hard to achieve.  Talking about the problems – employees are often advised to share their problems with colleagues/friends whom they trust. BURN OUT Excessive stress leads to burnout. ORGANIZATIONAL LEVEL – MEANS TO MANAGE STRESS Organisations can reduce stress at work by organising the conditions and requirement s of the work place and the job in such a way as to minimise those situations which are likely to cause stress. the signs of burnout are inability to relax. Techniques of time management can be effective in coping with work overloads. carefully select and place the workers. religious groups etc). Burnout is often the end result of too much job stress. Moreover.Thus generally speaking stress can be managed at the personal level by using methods such as:  Managing time effectively – poor time management significantly impacts on stress levels of people. the organization should set realistic targets for the employees. the individual falls apart. being constantly irritable with family and friends often commenting that the person looks sickly. allowing time for urgent problems and contingencies. and adopt policies that enable the employees to balance between work life and personal life. REDUCING BURNOUT 141 .  Taking regular breaks – this enables the employee to refresh their minds and bodies. Burnout is the total depletion of a person’s physical and mental resources caused by excessive striving to reach some unrealistic work related goal. identifying so closely with an individuals activities such that when the activities fail. Organisations are expected to be accountable for the damage caused by stress and other aspects of the health and safety of employees. meditation. or even engaging in physical exercises. This can include job redesign ( e. All these approaches help someone to control their stress  Doing other things – the employees can establish outside interests (such as joining social clubs. organising work so that you can find things when they are needed. finishing one task before starting another. which will help to keep them fresh and creative. Relaxation may take the form of reading a good book. liquor. yoga. or tranquillisers. working more but enjoying the work less.

Prevention – the burnout should be prevented before it begins Identification – the organisation should set in place techniques for the analysis of the incidence. prevalence. work groups. sub units or organisations Mediation – these are procedures for slowing. halting. and characteristics of burnout in individuals. approaching the end of the stages of this process 142 . or reversing the burnout process Remediation – these are techniques for individuals who already burned out or are rapidly.

In other words. 17: HUMAN RESOURCE PRODUCTIVITY Learning objectives At the end of this chapter one should be able to:  clearly define productivity. Most of these strategies depend on employees seeing a link between what they produce and what the firm is attempting to achieve. productivity can be determined by calculating a ratio where by: Productivity = Output Input The most widely used measure of input is worker hours. DEFINITIONS OF PRODUCTIVITY Productivity is the quantity or volume of the major product or service that an organisation provides. Managers often rely on measures of productivity to gauge the efficiency of their departments. i. the customers served per day.  elaborate on productivity measures in service and goods producing organisations.  Understand and analyse the various approaches that can be used to improve on the firm’s productivity and competitiveness. The numerator changes according to the work being accomplished i. 143 .  State the benefits of improved productivity.  discuss the factors affecting productivity. This would consider both output efficiency and how effectively a service accomplishes its goals. in terms of how much and how well. For most workers. and ultimately the employee will be less motivated to perform it.e. the numerator can be the number of units that employees produce per hour. Thus the focus of the definition is on efficiency of production. It may be more appropriate to use a broader definition of productivity for services. it is the amount of work that is being produced in the organisation. goods producing sector because the output can be fairly accurately determined. the hours compensated by the employer rather than hours spent at the work place. or the clients contacted per week.CH. Introduction Human resource professionals frequently implement strategies for improving productivity and quality in their organisations. This definition of productivity is particularly appropriate for the private.e. work may be less meaningful. Without this relationship.

organisation in relation to inputs or resources used by the individual. Attitude plays an important role as to whether an individual has the propensity to work. employees must have the proper skills. or organisation for the creation of the outputs. Productivity is defined as measures or indicators of output of an individual. and equipment. Besides the workers' ability to accept and implement changes is an important consideration. Learning Learning looks at training issues. and. Motivation 5. Readiness to change 1. Learning 4. The aim is to make individuals to work effectively (doing the right things) and efficiently (doing the things right). Productivity improvements can be achieved through a series of events as shown above. To be effective and efficient in their work. among customer complaints and suggestions among others. Innovation 3. 2. productivity is a measure for the output of goods and services relative to the input of labour. Productivity is affected by five major factors namely: 1. and in many cases. FACTORS AFFECTING PRODUCTIVITY High productivity is what makes an organisation thrive. 144 . these skills have to be taught . the number of completed projects. not harder. Thus it is necessary to increase the employee’s motivation as one way of increasing productivity. it feasible. studied for their feasibility. The idea for an innovation can come from a number of sources such as the employees. The concept behind capital investment is to provide the latest technologically advanced equipment that will help the workers to work smarter. from robots to word processors. group. Capital investment 2. Common productivity measures Include the number of calls per day. implemented. and the sales cycle time. group or.especially the skills needed to use a new piece of equipment.Generally speaking. Motivation A best trained employee with the ability and access to the most advanced piece of equipment will not be productive If he/she is unwilling to be so. 4. 3. materials. Innovation It is a process whereby new and creative ideas are welcomed. the number of customs handled each day. An organisation without a good product or service to sell will have many problems. Capital Investment It includes having the best possible machinery available that will help to improve the efficiency of the workers. The machinery or equipment can be in many forms.

personnel appraisal systems. Productivity increases make it possible for wages to be increased without raising unit labour costs and the prices of goods and services i. materials or people. time allowed for training. this may mean that minimising errors. smiling and offering to go the extra mile for a customer is stressed. not increasing production through the addition of resources like time. less money. 145 . the idea is to make the service industry more productive by having better-serviced customers. the goals of most service organisations is to provide the fastest. All these will create a work atmosphere that views change as a positive and progressive endeavour. less time. today's world demands that we do more with less . Readiness to change Change is a fact of life whether the individuals private or work life. Employers must make changes to remain competitive. Indeed the fear associated with a possible threat to job security could negate any advantage that might accrue by automating an office because this fear might manifest itself as decreased morale. A secretary who has been used t a typewriter may resist changing from the typewriter to a word processor. More productive organisations get more goods and service out of a given amount of labour. and equipment than do less productive organisations. Improving productivity is not working harder.fewer people. The more productive an industry is. and programs to improve morale and communications. This improves the standards of living for the workers. In practice. eliminating reworking. the better its competitive position because its unit costs are lower. and revised systems of compensation. and fewer resources in general. It is doing better with what you have. the output in service organizations may be influenced by other non quantitative variables. In fact. In some cases. and friendliest service possible to any and all customers. as well as supporting the change by budgeting monies so that the complete change can be made. less space.e. and decreased production allowed while the employees are being trained. Enhanced productivity is a goal in plans for employee training. businesses can pay higher wages without boosting inflation.5. more participative styles of administration. In any. Productivity naturally increases when more output is derived from the same input or when the same output is derived from decreased input. money. changes in organisation. They must identify why changes are necessary and lend their total support in ensuring that the change takes place. PRODUCTIVITY FOR SERVICE ORGANIZATIONS Defining productivity for service organisations is not easy because while out put per hour could be measured by the number of customers served. capital. In terms of productivity. BENEFITS OF IMPROVED PRODUCTIVITY Improving productivity simply means getting more out of what is put in. most efficient. The support can be in the form of time allowed to introduce a new system. case. it is working smarter. change may be resisted.

This idea is used in Japan by Toyota and Mazda Corporations but the idea originated from Henry Ford of the famous Ford Motor Company (USA). job enrichment and even self managed work teams. decision making responsibilities. Organisations vary in the level of involvement of employees. information. and teamwork training to allow employees to handle more complex jobs. Total Quality Management Total Quality Management has been clearly enunciated by experts such as Philip Crosby. Edward Deming.going education and training to employees  Familiarity with a statistical way of thinking and the use of statistical methods throughout the organisation  Emphasis on prevention rather than detection  View of vendors as long term partners  Performance measures that are consistent with the goals of the organisation 146 .APPROACHES OF IMPROVING PRODUCTIVITY AND COMPETITIVENESS a. Reward systems are modified to provide incentives for becoming skilled and committed to the company's overall effectiveness. and team-oriented work. Employee Involvement: It provides employees with greater amounts of four key components namely power. and Genichi Taguchi These ideas were adopted and mastered by the Japanese and later spread to American Companies. Information about the business is widely shared with employees. cross-training on related jobs. and a focus on the company's success is achieved with profit sharing. suggestion systems. gains sharing. b. or employee stock ownership programs. knowledge. Some of the common principles underlying Total Quality Control approaches are:  Customer-first orientation (both internal and external customers)  Top management leadership Commitment to the quality improvement process  Focus on continuous improvement  Respect for employees and their knowledge. and information about the company's competition. so that they have the understanding and background to contribute to decision making in the organisation. Joseph Juran. Pay for skills systems are common. Armand Feigenbaum. employees are actively involved in the improvement process  Reduction of product and process variations  Provision of on. to reward learning additional jobs within the team. Knowledge is enhanced by additional job skills training. c. and rewards Power is shared downward by various mechanisms for obtaining employee in put into decisions. These may include quality circles or other forms of work improvement teams. W. Lean Production systems This involves making use of small teams of multi-skilled workers who are rotated and enriched/empowered to find better ways of doing their job.

each department involved in a process would try to do its portion of the activity more quickly and accurately. Business Process Improvement is a set of practices for regularly examining and improving the processes that go on in an organisation. the firm may need to adopt some of the best practices of the leading firms. but there may be an elected team leader. and procurement. Work Improvement Teams (Quality Circles) Quality control circles consist of 7-10 volunteers from the same work area who meet regularly to define. and allocating pay increases. analyse and solve quality related problems in their areas such as conditions under which people do their jobs. doing performance evaluations. An organisation may have several quality circles operating simultaneously. When this concept is used throughout much of the organisation. job satisfaction. output requirements. The team makes most of the production decisions such as scheduling. Business process improvement is also called "re-engineering" and may involve benchmarking whereby an organization compares itself with other organization in the same or in different industries. the result is called a "high involvement organisation". and influence of technology among other factors. selecting new members.g. After a benchmarking exercise. materials management. each dealing with a particular work area. Membership to the quality circle is voluntary and there are no payments for being a member of the group. distribution. assigning work. They do not alter the nature of the employees’ jobs and only provide the opportunity to make suggestions and decisions on how to improve the job. e. deciding on methods. However. Quality circles are very effective in the short run. In a traditional approach to quality. but the entire process from start to finish is unlikely to be critically evaluated or redesigned. Management is responsible for providing information to the group on costs. billing. quality. The team is such that there is no supervisor. Self Directed Work-Teams: These are also called "self managed work teams” or” autonomous work groups". Business Process Improvement Generally attributed to IBM. and any other technical assistance that is requested. they are less effective at creating more permanent changes.    Product or service quality that begins with its definition and design Co-operation and involvement of all functions within an organisation Awareness of the needs of internal customers Substantial cultural change d. f. A process is a repeated set of activities. The members of the quality circle should be trained on problem solving techniques. The team is given responsibility to produce a product or service. often carried out in sequence by several departments that adds value and produces measurable outputs e. 147 . efficiency at work.

Possible on the job rein forcers include social reinforces ( e. 1. An example is the suggestion box. Encouraging continuous learning and training toward development of personal skills and knowledge. pats on the back and greetings from boss). special badges or insignias. longer coffee breaks. i. sales people and hourly workers like tree planters and truck drivers. birthday off. points backed by prizes. It is effective with employees as diverse as managers and professionals. resulting in greater job involvement and satisfaction and reduced levels of stress. fringe benefits.g. j. 3. token reinforces include telephone credit cards. Suggestion Systems these systems enable employees to raise valuable suggestions for improvement or even to make complaints. Quality of work life programs Quality of work Life (QWL) is defined as a process buy which all members of the organisation have some say in decisions that affect their jobs in particular and the work environment in general. recognition in front of co workers. Sustained commitment by management to participation by employees at all levels in the organisation in the design. implementation. Material rein forcers ( awards. 148 . coupons redeemable at local stores. i. large offices and free tickets to sporting events). pay raises and bonuses. 2. which is highly successful for improving motivation and job performance. Special Privileges ( own parking space. picture in company paper. and chances to win prizes (lottery). flexible work schedules. longer lunch breaks. Behaviour Modification: Positive reinforcements can be used to improve needed behaviour. Goal setting: This is a proven technique. Effective goals have four characteristics  The goal must be difficult but not impossible to accomplish  The goals must be specific and measurable  The employee who then must strive to meet them must accept the goals  Feedback is necessary for goals setting to be effective over time. verbal praise. h.g. They have the following characteristics. special job title. Setting specific goals clarifies what behaviours are desired hence ambiguity in one’s role is removed. training for better jobs and earned time off). Specific and difficult goals with feedback allow people to receive motivational respect for meeting their goals. and regards of their work. Financial Incentives: Examples of incentive systems are Commissions and pay for skills possessed rather than skills required. notes of thanks. Restructuring jobs to make them most challenging.

it gives managers a means of copying with frequent absenteeism and high turnover. Promoting an atmosphere of open communication and trust between management and the workforce. Job enrichment requires a lot of commitment and planning by top level management. The overall purpose is to improve a job by making it more exciting and challenging. 6. It involves periodically assigning employees to alternating jobs or tasks The rationale behind job rotation is that since different jobs require different skills the intrinsic reward potential of the job will increase. the additional tasks or duties typically require no new skills and are very similar to the previous ones Through job enlargement. k. and substantial changes in leadership styles of the supervisors and managers. It has achieved little success in motivating employees. inexperienced employees. 5. Typically the worker decides how the job is performed. Meaning can be placed into a job by providing for skill variety. This is because the depth of the job does not change. a previously monotonous job remains monotonous (only a larger scale before). solve the problem of boringly repetitious jobs. and if the employee is granted some degree of discretion and autonomy over the job. retraining of employees. At higher organisational levels. task identity. m. n. Job Enlargement It involves expanding the number of tasks or duties assigned to a given job.4. l. the worker has knowledge of operating results. Employees love their jobs if the work is meaningful. Nevertheless. Training supervisors toward a more participative. Job Enrichment This is mainly used by organisations with employees who have high levels of knowledge and skills. as the jobs are similar. Opening feedback channels to the worker can affect knowledge of operating results. however. Flexi-Times 149 . and task significance. that workers sense of responsibility is increased. However. and the worker is personally responsible for the results. Providing feedback on and recognition for results achieved. planned and controlled and makes decisions concerning the entire process. Job rotation does not. Job rotation is often effectively used as a training technique for new. rotation also helps develop managerial generalists because it exposes them to several different operations. supportive and collaborative style. Job Rotation This is a technique used to enhance employee motivation and productivity.

and using status symbols such as the design of the office.This is a German innovation. 150 . Under a flexitime system. telecommuting. redesigning jobs. employees are allowed to vary their daily work schedules as long as the required number of hours is worked each week. the type of car driven. and the kind of house lived in. Other approaches of improving productivity and competitiveness include collective goal setting.

Jeffrey Gold (2003) defines PA as a process that provides an analysis of a person’s overall capabilities and potential allowing informed decisions to be made for particular purposes. It is sometimes called merit rating. Definition of Performance Appraisal (PA): Performance Appraisal (PA) has been defined variously by different authors. 151 . and an approach to managing and developing people in a way that increases the probability that the goals of the organisation will be achieved in the short run and also in the long run. 2002: 19-20). It is a process for establishing shared understanding about what is to be achieved. based on considerations other than productivity alone. It is therefore necessary to understand performance management in order to fully understand performance appraisal Performance management can be defined as a strategic and integrated approach to delivering sustained success to organisations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors (Armstrong and Baron. especially when it is to discriminate between employees in granting increases in wages or salaries”. Some of them include the use of the Balanced Score Card.CH. standards and competence requirements. There are many tools that are used to improve performance and which are the subjects of the performance management process. It lets the employees know how well they have performed in relation to the standards of the organisation. teams and individuals by understanding and managing performance within an agreed framework of planned goals. performance contracts and performance appraisals. Graham (1999) defines PA as “the judgement of an employee’s performance in a job. Glüeck (1978) defines PA as a personal activity by means of which the enterprise determines the extent to which the employee is performing his/her job effectively. Fisher (1996) says PA is the process by which an employee’s contribution to the organisation during a specified time is assessed. 1998). Performance appraisal refers to the systematic description of the job-related strengths and weaknesses of an individual or group (Gerald R. The purpose of Performance management is to get better results from the organisation.18: PERFORMANCE APPRAISAL Introduction Performance appraisals are part of the broader field of performance management. 1.

These factors may include the family. Holding regular informal oneto-one review meetings greatly reduces the pressure and time required for the annual formal appraisal meeting. Benefits of performance appraisals Performance Appraisal is normally done for some or all of the following reasons: a. Performance Appraisal may be used to weed out marginal or low performing managers and to serve as a basis for modifying behaviour toward more effective performance. suppliers. Holding informal reviews every month is ideal for all staff. Poor performance may indicate the need for retraining while good performance may indicate untapped potential that should be developed c. competitors. If uncovered through appraisals the personnel department may be able to provide assistance. or other parts of the Personnel Management's information system. performance evaluation. financial. Reliance on inaccurate information may have led to inappropriate hiring. promotions.It has also been defined as the systematic evaluation of the individual with respect to his performance on the job and his potential for development (Beach. Many firms actually grant part or all of their pay increases and bonuses based upon merit. and merit evaluations. Performance appraisal assists the personnel department in evaluating its activities. training or counselling decisions. The performance feedback also guides career decisions about specific career paths that one should investigate d. which is determined mostly through Performance Appraisal b. Performance evaluations assist decision-makers to determine who should receive pay increases. Some of the commonly used terms include performance review. Often. 152 . Good or bad performance implies strengths or weaknesses in the personnel department’s staffing procedures. There are several benefits of reviewing frequently and informally:  The manager is better informed and more up-to-date with his or her people's activities (and more in touch with what lies beyond such as the customers. Performance Appraisal provides the basis for validation of prediction used in internal and external selection as well as placement. Sometimes performance is influenced by factors outside the work environment. manager. Similarly poor performance may indicate errors in job analysis information. employee evaluation. markets. demotions or retrenchment. transfers. Performance appraisals should be held regularly. g. promotions are a reward for past performance. annual appraisal. Different firms use various terms to describe this process. etc). Appraisals help diagnose errors in job designs e. The performance feedback allows the employee. f. health or other personal matters. Human Resource plans. and personnel specialists to intervene with appropriate actions to improve performance. 1975).

and purpose is more up-to-date. Staff members can be better prepared for the formal appraisal. direction. notes agreed tasks and records of performance. increasing success rates and motivational effect as a result. 153  . Organize your paperwork to reflect the order of the appraisal and write down the sequence of items to be covered. Relationships and mutual understanding develops more quickly with greater frequency of meetings between managers and staff members. achievements. A good appraisal form will provide a good natural order for proceedings.         Performance appraisals process  Prepare . giving better results. reports etc . The 'fear factor'. Training and development actions can be broken down into smaller more digestible chunks. often associated by many with formal appraisals is greatly reduced because people become more comfortable with the review process. tasks and objectives can be agreed completed and reviewed quickly. If the appraisal form does not imply a natural order for the discussion then provide an agenda of items to be covered. Give the appraisee the chance to assemble data and relevant performance and achievement records and materials. Much of the review has already been covered throughout the year by the time the formal appraisal comes. and saving management time. Ensure the appraisee is informed of a suitable time and place (change it if necessary). This includes the previous performance appraisal documents and a current job description. and reduces the chances of overlooking things at the formal appraisal. incidents. Priorities often change through the year. so people need to be re-directed and re-focused. Help can be given more readily.prepare all materials. The regular informal review provides just this opportunity. Inform . Frequent review meetings increase the reliability of notes and performance data.anything pertaining to performance and achievement. Modern organizations demand more flexibility than a single annual review allows. discussed and resolved quickly. before they become more serious. If the appraisal form includes a self assessment section and/or feedback section (good ones do) ensure this is passed to the appraisee suitably in advance of the appraisal with relevant guidance for completion. Assignments.inform the appraisee. People rarely ask unless they see a good opportunity to do so.  Difficult issues can be identified. Objectives. Leaving actions more than a few weeks reduces completion rates significantly for all but the most senior and experienced people. and clarify purpose and type of appraisal.

THE PERFORMANCE APPRAISAL PROCESS: Establish performance standards with employees e.Thank the appraisee for their contribution to the meeting and their effort through the year. target sales of $500. Sitting at an angle to each other. objectives and achievements one by one.         The following theoretical framework also summarises the performance appraisal process. Open with a positive statement. and commit to helping in any way you can. time-bound. reading. agreed actions and follow-up . measurable. and your own line manager typically). Review and measure . Agree an action plan . Agree necessary support . it's your responsibility to create a calm and non-threatening atmosphere. watching videos. attending meetings and workshops. shadowing. agreed.These are the specific actions and targets that together form the action plan. (HR. workbooks. and be warm and friendly. internal courses. As with any delegated task or agreed objectives these must adhere to the SMARTER rules .specific. The appraisee may well be terrified. medium and long term aspects.Swiftly follow-up the meeting with all necessary copies and confirmations. recorded. mentoring. 90 degrees ideally.relax the appraisee. manuals and guides. Layout has a huge influence on atmosphere and mood.ensure a suitable venue is planned and available which is private and free from interruptions Layout . which should take account of the job responsibilities. Record main points.review the activities. distance-learning. enjoyable. tasks. Invite any other points or questions . Introduction . Agree specific objectives . the atmosphere and mood must be relaxed and informal. the departmental and whole organization's priorities. It is therefore necessary to remove barriers. realistic.000 154 . coaching. but importantly it must be agreed and realistic. and the reviewed strengths and weaknesses. and can include training of various sorts (external courses and seminars.make sure you capture any other concerns. anything relevant and helpful that will help the person develop towards the standard and agreed task). Close positively . the appraisee's career aspirations.An overall plan should be agreed with the appraisee. The plan can be staged if necessary with short.This is the support required for the appraisee to achieve the objectives. Avoid going off on tangents or vague unspecific views. irrespective of content. smile. keeping to distinct separate items one by one.room layout and seating are important elements to prepare also. secondment.  Venue . and ensure documents are filed and copied to relevant departments.g. is recommended in order to avoid face to face contacts which are confrontational.

Set mutually measurable goals Measure actual performance e.g. The group members either assigns the 155 . and fairly. Policy makers should however ensure that performance appraisals are conducted in a professional manner because appraisals of subordinates are a legitimate and critical part of supervision.000 Compare actual performance with standards and note deviations Discuss the appraisal with the employee Initiate corrective action. The Supervisor (or Person In Charge) The rating of employees by supervisors is based on the assumption that the supervisor is the most qualified person to evaluate the employee’s performance realistically. Supervisors often prefer to avoid the appraisal process because of uncomfortable face to face confrontations that often result. actual sales achieved $300. objectively. To ensure that the judgement is objective and based on actual performance the supervisor should keep records of each employee’s performance. The supervisor is normally the best person to observe the employee’s behaviour and determine whether the employee has reached specified goals and objectives or not. Each group member rates every other group member on a recognisable quality like leadership. Quite often peers provide information that the organisation cannot get from the supervisor. if necessary Who Conducts the Performance Appraisal Process? 1. The supervisor’s appraisal should be reviewed by his/her manager to make sure the supervisor has done a proper job of appraisal. Peer Evaluations These are often called “buddy ratings” and are used where an employee is working with other employees in a non-competitive work group environment. 2. and that any rewards recommended are justified. This is because the supervisor has direct contact with the employee.

Further. and to connect job performance with company goals especially for white-collar employees. and other techniques are used in addition to comment cards to try to get the customer's evaluations of the employee’s performance. It is also used where an employee is working in isolation or possesses unique skills. c. Peer evaluations work best when:  They are limited to people who see themselves as similar/ equals  The peer rates work best when fellow workers have had the opportunity to see the other person perform tasks. honest appraisals because of fear of possible retaliation. Customer/ Client Evaluations Client/ Customer Evaluations are commonly used in service-related jobs. 3. Self-Rating is a self-development tool that forces employees to think of their strengths and weaknesses and set goals for improvement. where the customer evaluates the employee. However. 5. The Committee members may not realise that the performance appraisal is not meant to crucify employees. and  Peer rates work best where there is no probability of retaliation However. because the client is usually with the employee for a short period of time (unlike the supervisor). It can be a cumbersome and time consuming process b. peers will often not give objective. build genuine teamwork. Specialised customer questionnaires. help in developing them e. Employees may perceive the Committee as being unfair d. etc. groups don’t always come up with the best appraisals. Reverse Appraisals 156 . The Committee Chairperson can influence the outcome of the appraisal exercise. researches indicate that factors such as race may have more of a biasing effect when co-workers rate an employee than when a supervisor does the rating. 6. unfortunately. The Group Summary Appraisal Here a committee of managers is invited to assess a subordinate's performance and possible means of improvement. and know who is good at what job  Peer rates work best when more objective sources of feedback are lacking. telephone follow up surveys. The points on which all agree constitute the appraisal. Disadvantages: a. but rather. Client/ Customer Evaluations are usually incomplete because they only give a part of the employee’s performance. The results can be compromised. Self Ratings Self-ratings are not to judge the person but to encourage employee development. 4.others a score or they nominate a specified number of fellow workers whom they consider high or low in the quality being measured.

These are also called upward evaluations. The results are used to help superiors improve themselves or organisations to assess the managerial leadership potential.g. b. rather than consist of vague comments. Advantages: a. the outsider may not know all the important contingencies in the organisation. The 360 Degree Feedback/ Appraisal System Also called the “all-round” appraisal system. e. 157 . The workers may rate the superior only on the way the superior treats them. where the employees/ subordinates rate the supervisor. In order to be meaningful. The results are then tabulated. the fear of retaliation must be eliminated for this employee voice mechanism to be effective. An example is in combat situations that may lead to life or death of the members. Employees are given the opportunity to give a direct. 8. The process is also time consuming and expensive. Internal customers refer to one department being the customer of the other. The rating can also help the superior become more responsive to employees as long as the superior does not become “nice” because “nice” people may not be effective. Outside reviewers provide managers with professional assistance in making appraisals. 9. The Multiple Rating System This merely requires several superiors to separately fill-out forms on the same employee. e. 7. c. formal feedback to their supervisors on their managerial performance. peers. the purchasing department is a customer of the marketing department.g. and not on critical job requirements. Employee Resistance – many employees may resist rating their bosses because they may not perceive it as a proper part of their job. This fear may be too great for employees to give realistic ratings b. Outside Raters Outside experts may be called to review the work of say. since ratings are collected all around from employees to superiors to subordinates. the subordinates can be used to identify competent supervisors. Disadvantages: a. the Chief Executive Officer or a College President. Anonymity is necessary unless there is a high level of trust at the work place. Where the subordinate/ executive relationship is crucial for success. such evaluations must identify particular strengths and weaknesses. However. Finally. internal or external customers. students may rate professors in Universities or Colleges. It should be noted that most organisations don’t use reverse ratings except for self-improvement purposes. etc. Such rating of employees is especially appealing when the preservation of organisation is important. Fears of Retaliation – many supervisors/eExecutives have negative reactions to being appraised by their employees/ subordinates.

The appraisal can be targeted to executives. The following factors should be considered when selecting the PA method: 1. training and compensation 4. The costs of developing and implementing the method 2. The number of accidents and the number of times one is late or absent are other objective measures of performance. This is an attractive and straightforward measure of performance.usually by supervisors and include rating systems. The usefulness of the method in conveying the organisations' goals and expectations to the employees as well as for employee development The performance itself may be objectively or subjectively appraised. Objective measures of performance may include production figures whereby a production standard is first established and the employees measure of output is judged against the standard. The beneficial effects of the method on personnel research and test validation 3. professionals. managers. technical personnel. discipline. The Steps in Developing a Performance Appraisal System: Determine Performance Requirements Choose an Appropriate Appraisal Method Train Supervisors Discuss Methods with Employees 158 . clerical staff etc. ranking systems and paired comparisons. Judgmental methods are subjective in that they rely on individual assessments .Performance appraisal Methods The appraisal method will depend or vary from organisation to organisation and the people to be appraised. transfers. The effectiveness of the method in facilitating decision making on promotions.

159 . is fully as valid as more formal and more complicated methods. essay appraisals from former employers. Nor is any one technique able to evade all of the pitfalls. and none is able to achieve all the purposes for which management institutes performance appraisal systems. or associates carry significant weight. particularly those involving professional. weaknesses. and so on.Appraise According To Job Standards Discuss Appraisal with Employees Determine Future Performance Goals THE METHODS OF PERFORMANCE APPRAISAL The diagram below shows some of the Appraisal methods commonly used: Performance Appraisal Systems Rating Scales Comparative Methods Critical Incidents Essay MBO Check List Methods Combination methods Each of these methods has its own combination of strengths and weaknesses.from someone who knows a person well. teachers. The most commonly used appraisal techniques include: 1. In most selection situations. or managerial positions. sales. this technique asks the rater to write a paragraph or more covering an individual's strengths. The best approach is to match an appropriate appraisal method to a particular performance appraisal goal. potential. Essay appraisal In its simplest form. The assumption seems to be that an honest and informed statement -either by word of mouth or in writing.

RATING SCALES Rating scales are satisfactory for most evaluation purposes because they provide a mathematical evaluation of the employees' performance. job performance. leadership. similar to the one below: Never (0%) Rarely/ Seldom (25%) Half the Usually Time/ (75%) Sometimes (50%) Always (100%) For operative staff. This technique may not yield the depth of an essay appraisal. Questions are formulated and each question would then have a numerical scale alongside it.The biggest drawback to essay appraisals is their variability in length and content. the supervisor may spend formidable time writing separate essays about each employee. The Graphic Rating Scale: This involves using a scale to measure or gauge an employee’s relation to a certain attribute such as using initiative. 2. which can be used to justify compensation or job changes and to validate selection instruments. but it is more consistent and reliable. creative ability. initiative. decisiveness. some type of more formal method. The essay method reduces supervisory bias. For comparability. a. Moreover. However. is desirable. typical factors are analytical ability. The assessor gives the employee a score which most closely approximates his degree in relation to the question(s) and a total score is arrived at by adding together all of the individual item scores on the appraisal form. essay ratings are difficult to combine or compare. halo effect. Further essays are not very useful for evaluative purposes as no common standard exists. reliability. punctuality. like the graphic rating scale. Although this method is quick and requires little training. ability to meet targets. co-ordination. and emotional stability. A good writer will earn the appraisee more marks while a poor writer who may be appraising a good worker may make the employee to earn low marks due the inability to write. Typically. since different essays touch on different aspects of a man's performance or personal qualifications. Another drawback is the appraiser’s ability to write. it is prone to rater errors. typical qualities rated are:  Quality and quantity of work  Job knowledge  Cooperativeness  Dependability  Initiative  Industriousness  Attitude For management personnel. a graphic scale assesses a person on the 160 . central tendency and leniency problems.

It may also include specific performance items like oral and written communication. e. Bars are developed through the active participation of both managers and job holders therefore increasing the likelihood of the method being accepted. The assumption is that personal behaviour will result in required performance. but remains the most widely used rating method.g. Bars or Behaviorally Anchored Rating Scales This method is designed to assess behaviour required to successfully perform a job. or unsatisfactory?) and on a variety of other factors that vary with the job but usually include personal traits like reliability and cooperation. average. For many purposes there is no need to use anything more complicated than a graphic scale supplemented by a few essay questions. above average. The graphic scale has come under frequent attack. 161 . The rater can give a more accurate description of the employee’s behaviour on a particular attribute because a description clarifies each level of the rating scale. b. However. Each job will have several bars. with regard to punctuality Never (0%) Rarely/ Seldom (25%) Half the Usually Time/ (75%) Sometimes (50%) Always (100%) Comment on your response with regard to punctuality _______________________________________ ___________________________________________________________________________ ___ Non-graphic scales are more valid than graphic rating scales as they contain a brief description of each point on the scale rather than simply high and low points of a scale. Non-Graphic Rating Scales Non-graphic scales may be used when an explanation may need to be given to justify the point raised. c. Most bars use the term job dimension to mean those broad categories of behaviour that make up a job.quality and quantity of his/her work (is he outstanding. it takes time and commitment to develop different bars for different jobs. It is cheaper to develop and more acceptable to raters than the forced-choice form. It is a quick and less difficult method for supervisors to use.

or when comparability of ratings is essential. They include: a.g. leadership skills. It is not developmental because employees do not receive feedback about their performance with regard to strengths. or on their sales performance. The field review is one of several techniques for doing this. (b) help the group arrive at a consensus. This group-judgement technique tends to be fairer and more valid than individual ratings and permits the central staff to develop an awareness of the varying degrees of leniency or severity -as well as bias. On the negative side. ratings. Field review When there is reason to suspect rater bias.3. the process is very time consuming. essay or graphic ratings are often combined with a systematic review process. No ties or balanced scores are allowed. from the best to the poorest in terms of a specific characteristic or of overall performance. 4. Ranking (Individuals) Employees are ranked on a certain attribute e. Advantages: 1. individual statements. Comparative Methods They avoid the problem of central tendency or crowding employees in some groups. and (c) determine that each rater conceives the standards similarly. particularly when it is necessary to compare people who work for different supervisors. or when some raters appear to be using higher standards than others. A member of the personnel or central administrative staff meets with small groups of raters from each supervisory unit and goes over each employee's rating with them to (a) identify areas of inter-rater disagreement. It assumes all employees in the organisation can be ranked from the best to the worst 3. Instead. A numerical evaluation given to the employees can be directly related to and used to make other decisions such as compensation changes or staffing considerations Disadvantages: 1. weaknesses or future direction 2. There is no common standard of performance by which to compare employees from various departments For comparative purposes. it is necessary to recognize that comparisons involve an overall subjective judgment to which a host of additional 162 . It is fast and easy to complete where few employees exist 2.It involves rating individuals by arranging them according to merit. or appraisal forms are not particularly useful.exhibited by raters in different departments.

crosses his/her name off. not statistics. but it does not involve the intervention of a third party. Both ranking techniques. There is no single form or way to do this.facts and impressions must somehow be added. and so on.preferably in random order. choosing a service supervisor or determining the relative size of salary increases for different supervisors. and puts it at the bottom of the right-hand column. 20% below average and 10% very poor. The employee is given a positive comparison total and a certain percentage of the total positive evaluation as follows: The No. requires subjective judgment. particularly when combined with multiple rankings (i. he/she selects the "least valuable" employee on the list. when two or more people are asked to make independent rankings of the same work group and their lists are averaged). b.. crosses his/her name off and enters it below the top name on the right-hand list. are among the best available for generating valid order-of-merit rankings for salary administration purposes. it is time consuming where many employees are being rated. Paired-comparison ranking: Raters here pair employees and choose one as superior in overall job performance. c. this technique was developed to reduce bias and establish objective standards of comparison between individuals. The ranker then selects the "most valuable" person from the remaining list. Next. Forced Distribution: The supervisor is forced to distribute the employees to pre-determined groups like 10% should be excellent. of comparisons will be = N (N-1) 2 (where N = population) While the method is quick and easy where few (2 at a time) employees are being rated. the names of employees are listed on the left-hand side of a sheet of paper . employees are compared to each other on overall performance rather than on specific job criteria. Moreover. The best approach appears to be a ranking technique involving pooled judgment. and put it at the top of the column on the right-hand side of the sheet. 20% good. If the rankings are for salary purposes. Like the field review. cross his/her name off. a supervisor is asked to choose the "most valuable" employee on the list. 40% average. The two most effective methods are alternation ranking and paired comparison ranking. say. Alternation ranking: In this method.e. Comparing people in different units for the purpose of. the most common one asks raters to choose from among groups of statements those which best fit the individual being rated and those which least fit 163 . Although there are many variations of this method.

Scaling incidents involves presenting the incidents to a group of people who are familiar with the job in question who then assign scale values to each incident according to its assessed desirability. s/he cannot play favorites. The checklist scale is drawn up containing only those items judged to indicate 'good' or 'poor' performance on the job. Supervisors are only required to indicate whether or not workers have or have not been observed to behave in a particular way as opposed to being forced to make judgements/rankings of the personal characteristics f their subordinates. which have been observed in particular organisational circumstances 2. An additional drawback is the difficulty and cost of developing forms. however. those with low scores are the poorer ones. who feel they are not being trusted.him/her. the technique is usually limited to middle and lower management levels where the jobs are sufficiently similar to make standard or common forms feasible. 164 . Since the rater does not know what the scoring weights for each statement are.and probably have a negative effect. and someone in the personnel department applies the scoring weights to determine who gets the best rating. the better employees.when used in performance appraisal interviews. He simply describes his people. Consequently. Finally. the forced-choice method tends to irritate raters. The rationale behind this technique is difficult to fault. The method does not involve complicated statistical procedures. finishing a major assignment ahead of time etc. Lastly they construct the checklist scale. by definition. The Critical Incidents Method: Supervisors first collect critical incidents that reflect especially favourable job performance (such as completing a major assignment a head of schedule) and then they scale the incidents. In practice. It is concerned with actual on the job behaviours. forced-choice forms tend to be of little value. People with high scores are. Here the evaluator uses the most memorable incidence associated with the employee whether they happened recently or sometimes ago. Advantages: 1. 5. Workers are rated according to whether or not they have shown any of the incidents/behaviours listed and a total score calculated. For instance: always reporting to work in time. The practice of forced distribution is that job performance is the basic factor in determining an employee’s value to an organisation and that other elements like co-operation and personality are worth considering only in so far as they contribute to performance.

The objectives and action plans must serve as a basis for regular discussions between the manager and the employee.  Establishing objectives for the future MBO is both advantageous and disadvantageous. If they seem unfair to a subordinate. and the employees should participate in the setting them. at the very least. This can become a chore. concise and unambiguous language. Objectives for new jobs are difficult to set. Management by objectives (MBO) Management by Objectives (MBO) is a developmental approach to performance appraisal. a weekly basis. MBO Involves the Following Steps:  Performance planning: The employee and supervisor mutually establish a list of goals designed to accomplish the needs of the business. Finally. the critical incident rating technique need not. cause a supervisor to delay feedback to employees. several drawbacks to this approach. the time and effort required implementing it is extensive. It requires that supervisors jot down incidents on a daily or. Developmental approaches offer specific. Personal development plans include methods of overcoming deficiencies and building on strengths through specific training measures during a particular time period. goal oriented. For instance while it focuses on performance results rather than personal characteristics. It is prepared jointly by an employee and supervisor for the purpose of improving proficiency and preparing for additional responsibility. however. might he not be more motivated if he at least has some say in setting. or at least agreeing to. further develop the employee and broaden his/her basic responsibilities. jobs related guidelines and behaviour for performance improvement.  Developing an action plan indicating how these objectives are to be achieved  Allowing the employee to implement the action plan  Review: Periodically the supervisor and employee should conduct a formal appraisal interview to review the employee’s actual performance against objectives  Taking corrective action whenever necessary  Personal development plan (PDP).There are. but may. The objective should be quantifiable and measurable. expressed in writing and in clear. Furthermore. High standards set may be difficult and unrealistic to achieve. challenging yet achievable. the supervisor sets the standards. the standards against which s/he is judged. 6. 165 .

The checklist Method A checklist for completion by job holders is similar to a questionnaire but response requires fewer subjective judgements and tends to be the YES and NO 166 . When realistically used. It involves setting a standard or expected level of output and then comparing each employee’s performance to the standards.7. Hence a good deal of time is spent observing employees on the job. Standards technique establishes work and staffing targets aimed at improving productivity. To be effective. subordinate staff. it can make possible an objective and accurate appraisal of the work of employees and supervisors. The work standards should reflect average output of a typical employee. 360 degree appraisals. 8. 11. This is used mostly for production workers and is a form of goal setting for the employees. Work-standards approach The work-standards approach is set by the managers. The most serious drawback appears to be the problem of comparability. up-line managers/execs. simplifying and improving the job where possible. 360 degree respondents can be the appraisee's peers. how can the ratings be brought together for comparison purposes when decisions have to be made on promotions or on salary increases? For these purposes some form of ranking is necessary. Methods used to set standards include:      Average production of work groups Performance of specially selected employees Time study Work sampling Expert opinion The advantage of this method is that the review is based on timely objective factors.anyone who comes into contact with the appraisee and has opinions/views/reactions of and to the appraisee. other staff. If people are evaluated on different standards. The appraisee should also assess themselves using the same feedback instrument or form. the standards must be visible and fair. team members. suppliers . customers. and attempting to arrive at realistic output standards. 360 degree appraisals involve the appraisee receiving feedback from people (named or anonymous) whose views are considered helpful and relevant. The feedback is typically provided on a form showing job skills/abilities/attitudinal/behavioural criteria and some sort of scoring or value judgement system.

Instead the rater marks each employee near the centre of the rating sheet. CHALLENGES OF PERFORMANCE APPRAISAL Important challenges include legal constraints. This tendency underrates performance. The Leniency Bias results when evaluators tend to be positively lenient in their appraisal of an individual. demotions or failure to promote. age. lay offs.variety. The Halo Error – this takes place when the rater allows one aspect of a person’s character or performance to influence the entire evaluation. ii. If all individuals in an organisation were appraisal by the same person. disability. the Strictness Bias is just the opposite – it results from raters being too harsh in their evaluations. The Leniency and Strictness Bias: i. etc. Similarly. there would be no problem. on a rating scale of 1-5. and appraisal acceptance. The advantages of this method are that it is flexible. The Error of Central Tendency – this refers to the reluctance to give extreme ratings (either very poor or excellent). making judgements on the same set of employees. It is expected that one cannot be very good or very poor in all aspects. a rater may rate all employees as 3 – distorting the score to make each employee appear average. The disadvantage is that it can be time consuming and the results are not easy to analyze. Difficulty arises when we have different evaluators. d. can provide in-depth information and is easy to organize and prepare. 2. An appraisal system should be fair to all irrespective of race. giving the individual a lower appraisal standard than they deserve. sex. Cross-cultural Biases: 167 . rater biases. b. For instance. 1. RATER BIASES: a. This error can be minimized by educating the raters to make them aware of the problem. causing the performance of employees to be overstated and rated higher than they should be. some lenient and others strict. national origin. sometimes to be seen as tough judges. LEGAL CONSTRAINTS: Performance Appraisals must be free from discrimination and should not violate laws such as the Equal Employment Opportunity or any laws such as wrongful dismissal (discharge). minorities. The supervisors can also be asked to judge all the subordinates on a single factor or trait before going on to the next factor. job holders tick those tasks that are included in their jobs. showing an inability to distinguish between or among them (a form of range restriction). Checklists cover as many as 100 activities. c.

the manager must keep a written record. etc) the evaluator may be reluctant to give a realistic appraisal. CONCLUSION None of these methods is mutually exclusive. employees will be motivated by providing feedback on how they are doing. while others who may lack it may be penalised. Those who demonstrate this characteristic tend to benefit. the evaluator who perceives himself as aggressive may evaluate others looking for aggressiveness. Where subjective performance measures must be used. and must ensure agreed actions are followed up. Occurs when evaluators rate other people in the same way that the evaluators perceive themselves. Personal Prejudice: A rater's dislike for a group or class of people may distort the ratings those people receive e. salary increases. The Recency Effect Subjective performance ratings are affected strongly by the employee’s most recent actions . they may apply their cultural expectations to someone who has a different set of beliefs e. g. feedback. LOW APPRAISER MOTIVATION: If an evaluator knows that a poor appraisal could significantly hurt the employees future (e.When people are expected to evaluate others from different cultures. 4. e. opportunities for promotion.g. Similarity Error (“similar-to-me” mistake). LACK OF ORGANISATIONAL SUPPORT This happens when the organisation does not act on feedback received from the evaluation.g. and the proper selection of PA techniques. Such prejudice prevents effective evaluations and may even violate anti-discrimination laws. f.g. 5. biases can be reduced through training. 168 . 3. To achieve the best results. e. All of these performance assessment methods can be used in conjunction with others in the list. Where any of these processes is used. depending on situation and organizational policy.either good or bad . male supervisors often give undeservedly low ratings to women who hold traditionally male jobs.as they are more likely to be remembered by the evaluator. Similarly. Eastern cultures award more respect and esteem to the elderly compared to western cultures.g. APPRAISAL ACCEPTANCE: The employees may not accept the appraisal result and evaluators may have difficulties “selling” the results to the ratees. Arabic culture expects women to play a very subservient role especially in public.

the retention of employees may be directly related to the retention of major customers and investors. selection costs. Service industries may be more affected because in such industries it is the employees who provide the services. 19: DESPATCH OR SEPERATION OF EMPLOYEES Chapter objectives. Thus separation enables poor performers to be replaced. talented employees that it may need in the future. accident costs. Employees who enter an organisation will at one time leave that organisation hence there is always a movement of employees into and out of every organisation.  Low turnover may affect productivity negatively especially where the workforce is complacent and does not generate innovative ideas. Managers need to recognise that a high turnover can be a very costly experience to an organisation. In some cases. overtime costs and replacement costs. 169 . and opportunities for greater diversity are enhanced. Following the completion of this chapter.CH. the reader will be able to:    Explain the importance of proper separation procedures Understand the different approaches of separating workers from the firm Appreciate the need for planning the separation of workers. few employees will be hired and opportunities for promotion are reduced. it also has many benefits. This movement is referred to as labour turnover. Managers must develop skills for helping employees who leave the organization either voluntarily or involuntarily. Turnover costs include recruitment costs. In some cases. the employment relationship between individuals and the employing organisation will inevitably break down from time to time. This occurs where the employees have contacts with the customers or where the investors have confidence in the particular employees. Introduction Despite all efforts to maintain employees in an organisation. A poor separation can damage a firm’s reputation in its industry or community and limit its ability to attract the scarce. Some of the benefits include the following:  When turnover rates are too low. The management of an organisation may also terminate the contract. training costs. The reasons that make employees to separate from organisations range from retirement to layoffs. the employees terminate the relationship by resigning in order to take up positions elsewhere. The customers may have learned to trust certain employees. dismissal and death. downsizing. discharge. Consider the case for replacement of pilots or information technology specialists especially when they are in short supply. loss of production costs. innovation is increased. While separation has many costs. resignations. retrenchment. Employee separation occurs when an employee ceases to be a member of an organization.

TYPES OF EMPLOYEE SEPERATION Separations can be either voluntary or involuntary. poor working conditions and poor management. In all organisations there must be stipulated retirement regulations. The main types of voluntarily separation are quits and early retirement. they may opt to quit the job. Separations enable an organization to reduce its labour costs. they may psychologically disengage themselves from the jobs. QUITS (JOB WITHDRAWALS) An employee may withdraw from a job because they are dissatisfied with the job or the job environment. it aids human resource forecasts and plans. an organisation has an important role to play in the facilitation of this transition. inability to reconcile with the tasks and roles and other personal predisposition issues such as joining a spouse who is elsewhere or the desire to perform other family obligations. including mandatory and voluntary retirement schedules. In situations where the employees cannot change their situation or remove themselves from their jobs. In determining retirement regulations. it is important for managers to consider the pros and cons of both mandatory and voluntary retirement. An example is the use of “golden handshakes”. it enables employee to plan for their exit in 170 . Other reasons include poor health. The organization must plan for the early retirement of employees. 1. Sometimes. Since retirement is a major stage in one’s life progression. This can be done by showing less commitment to the job or to the organization and identifying less with both items. It occurs at the end of a certain period and results in the employee getting certain benefits. Some of the issues which lead to dissatisfactions include perceived or real poor pay and benefits. This method of separation should be avoided at all cost since they not only place a heavy financial burden on an organization but they may be a manifestation of poor worker management 2. Employees who are dissatisfied may seek to change the undesired behaviour but where they cannot do so. it creates opportunities for younger employees to exploit their potential. Involuntary separation occurs when the turnover is initiated by the organization especially among employees who would prefer to stay while voluntary separation is initiated by the employees whom the organization would prefer to keep. VOLUNTARY RETIREMENTS (EARLY RETIREMENT) Early retirement is initiated by the employee. The firm may be incurring unnecessary expenses on marginal performers. difficulties with supervisors and coworkers. Mandatory retirement may be advantageous because it is simple to administer. employers encourage employees to quit by using pay incentives such as severance pay or buyouts.

However. travel. The retirees engage themselves in a number of social activities such as visit. friends or home for the aged. At this stage the retirees reorient themselves into new lifestyles. feel bored and disenchanted after the honeymoon. They. Provides the reality of an imminent retirement. This begins many years before the actual retirement date. It is a spending spree. games and picnics. This is the time to face realities and develop appropriate interests and capabilities necessary for survival. An employee begins to see and be seen in short term. Honeymoon phase. These phases are:  Remote phase. Counselling programmes are useful here in providing the retirees with the much-needed assistance programmes. Termination phase. Reorientation phase. mandatory retirement does not recognize the fact that employees depreciate at different rates and that crucial talent may be lost due to a rigid regulation. It is also likely that a mandatory retirement age may be lost due to a rigid regulation. Stability phase. Retirement ceremonies and long service awards are held at this stage. This is the stage when the honeymoon is over. This is the stage where retirees experience unlimited freedom away from employment. The engagement of employees in major organizational activities begins to wane. Those retirees who did not plan for retirement will find it difficult fitting into new communities and changed roles in the society. relatives.       INVOLUNTARY SEPERATIONS These are initiated by the employer on those employees that are considered undesirable either due to failing to meet performance expectations are the inability to comply to the employer’s policies. This is when the retiree is no longer self-sufficient because he or she has exhausted both the financial and physical resources. 171 . A retiree can lead a predictable and satisfying lifestyle because he or she has now acquired a gainful position in society. therefore.advance and that it reduces inequities in decision making in regard to separation. Near phase. Awareness of an impending retirement is important so that provision can be made for financial and social security. This is the stage when the retiree ceases to be retired and becomes dependent upon family. It is also likely that a mandatory retirement age may induce some workers to “retire” while they still holding on to the jobs during their twilight years! Some sociologists have come up with several phases through which employees may experience the retirement process. This is the stage when the retirement programmes and lifestyles have been fully developed. It marks the end of retirement. Disenchantment phase.

Those who remain know that the next performance appraisal exercise may affect them negatively. also known as dismissals.  An employer who dismissed a number of employees for the same or similar reasons has offered to re-employ one or more. Consequently. social and family problems. it can lead to long court battles in which employers can be fined huge sums of money. use of abusive language. being arrested for an offence that can lead to imprisonment. Other reasons for summary dismissal include absenting oneself from the place of work without a just cause. uncomfortable relations can arise with some employees being violent to the employer. but the employer offered to renew it on less favourable terms. Employees who engage in serious misconduct.  An employee terminated a contract of employment with or without notice because the employer made continued employment intolerable for the employee.  An employee reasonably expected an employer to renew a fixed term contract of employment on the same or similar terms. Discharges. 1.The main types of involuntary separations are discharges and lay offs. inability to perform jobs because of drunkenness. Dismissal can have serious impacts on the affected persons. Where the exercise is poorly conducted. Failure to change some unacceptable behaviour is a very good ground for dismissal. Moreover. In situations where the discharged employee wins the court case and the employer is forced to accept the person back. 172 . such as theft or dishonesty. or did not renew it. can be defined as any one of the following:  An employer has terminated a contract of employment with or without notice. but has refused to re-employ another. discharges can bring financial. Thus an organization should have a standardized systematic approach to discipline and discharge. And those who “survive” in the organization may also experience the trauma and reduced motivation as a result of losing a colleague or a dear friend. They can experience trauma arising from shattered egos. collective agreement or her contract of employment. some of the employees at the bottom are then discharged. DISCHARGES Discharges are instituted on those employees that are unable to meet performance requirements or those who violate company policies on the job. Some organizations rank their employees from the best to the worst in terms of a performance variable such as the amount of sales made. may also be discharged. Discharging employees can be a very difficult task that needs to be handled with a lot of care and attention to the affected employees.  An employer refused to allow an employee to assume work after she took maternity leave in terms of any law. and committing an offence to the detriment of the employer.

The third offence is responded to with a second official warning with a threat of temporary suspension. having followed fair procedure. The changes include increased global competition. The organization must engage in proper human resource planning to avoid ending up in a situation where some employees are declared redundant. The death of an employee needs to be handled with care and concern so that those who remain 173 . then it should be done as fairly as possible. Established disciplinary procedures must be exhausted before an employee is discharged. It occurs where some change forces the firm to reduce its workforce. it should be done systematically. Dealing with redundancy is a painful exercise for human resources managers. reductions in product demand. Affected employees should be assisted to get jobs elsewhere as soon as possible. removing out-sourced contracts. or retrenchment. Due to the many negative effects of redundancies. s/he is temporarily suspended and given a last chance notification. they could change and become good performers. Sometimes employees die while they are still in active employment organizations should put mechanisms in place that ensure that employees don’t die from work related injuries while they are still in active employment. The organization should use contingency measures such as terminating part-time services. separation from colleagues. However. REDUNDANCY Redundancy has been variously referred to as layoffs. 2001). eliminating over-time. downsizing. The following steps provide a good guidance on the process. This is because it involves an abrupt loss of earning. rightsizing. reduction-in-force. and mergers and acquisitions. Where the employee repeats the offence a fourth time. changing technologies that reduce the need for workers. to dismiss employees. all dismissals should be done fairly. 2. In the first instance the employee should be given an unofficial verbal warning with a witness present.Employers should be entitled to and given the opportunity to make the appropriate justification for terminations and. The second offence warrants an official written warning. In situations where the redundancy exercise must be carried out. Employees should be given the opportunity to change those behaviours that are deemed to be undesirable. job sharing. loss of personality and many uncertainties ( Okumbe. and applying temporary layoffs. After all. who knows. Death ( natural attrition). Employees who are likely to be declared redundant should be warned in advance and encouraged to resign voluntarily through the use of monetary incentives. It is only when the employee repeats the offence that s/he is terminated but with a right to seek arbitration.

drug abuse. Managers often try to reduce the impact of such problems through the concepts of employee counselling. Ch.  Discuss the characteristics of a successful counselling program  Characteristics of a good counsellor.perceive the organization even better and continue to maintain their commitment to it. absenteeism and turnover. decreases in productivity. alcohol. and emotional problems are common occurrences in our society. as well as motivational programs. obesity. depression. Counselling is a part of the broader concept of employee assistance programs (EAPs). Introduction. training and development. These are job based programs operating within a work organization for 174 . The counselling seeks to help the former employees deal with the psychological issues of associated with losing one’s job (grief.  Examine and understand the counselling process. Stress. and increased costs. poor decisions. cardiovascular disease. fear). The problems could be personal or work related. 20: EMPLOYEE COUNSELLING Learning objectives After reading this chapter. in fact it may be the beginning of a better engagement in life. you should be able to:  Explain the need for employee counselling. It also seeks to convince them that losing one job is not the end of the world. Outplacement counselling Some organizations provide outplacement counselling to help employees make the transition from one job to another. These problems may contribute to accidents. This occurs mainly where the employee lost the job involuntarily and needs to get another job as soon as possible. Human beings have many problems. HIV/AIDS. mental illness.

Such support will ensure that the top management formulates policies and procedures to govern the process. Proper records should be kept so that the program can be evaluated afterwards. Dale Masi (1984) defines counselling as consisting of four activities namely:  Establishing a relationship between a trained counsellor and an employee. It is also defined as a discussion of a problem that usually has emotional content with an employee in order to help the employee to cope with it better. A successful counselling program should have the support and commitment of the top management.  Careful discussion of personal problems experienced by the employee. Employee counselling existed since time immemorial but proper employee counselling programmes are said to have began at the Western Electric Company in Chicago in 1936. and providing access to counselling or treatment for such employees. the counsellor will be able to provide advice the counsellee on how to come out of the present problems. Reassurance.the purposes of identifying troubled employees.  Having an appropriate referral that secures the necessary assistance. Advice. Through counselling. Specifically the policy on confidentiality should be emphasized. alcoholic. motivating them to resolve their troubles. The local union representatives should also be involved. 175 . EAPs attempt to ameliorate problems encountered by workers who are drug pendent. downwards. Counsellors seek to reassure the employees that all is not lost and that there is abetter future. or even horizontally.  The provision of short-term counselling when a referral is not necessary. Communication. Definitions of counselling The term counselling refers to a variety of activities ranging from informal discussions with a supervisor to intensive one-on-one discussions with a trained professional. Counselling sessions provide excellent opportunities to communicate upwards. or psychologically (mentally) troubled. Functions of counselling Counselling serves the following functions to employees( Davis & Newstrom. A wide range of services should be included in the program. 1986). Characteristics of an effective counselling program.

Reorientation. work and educational settings.poor mental health can interfere with life’s major activities such as eating. rape. The employee may have in-built emotional tension that has piled up over some time period. marital problems and other social problems (poverty. There are numerous difficulties that may result from redundancies. Substance abuse-common drugs abused by employees include marijuana and cocaine. incest. Problem identification.Release of emotional tension. and follow up. family. female genital mutilation. treatment. alcoholism. Mental health. managing money. It is through counselling and open communication that counselee may understand a problem from different perspectives. difficulties with family or children. The counselling process Trained counsellors are better than supervisors in providing counselling. The counselling process can be divided into six distinct steps. pathological gambling. problem identification. For many employees retirement presents serious challenges which may require the employee to be counselled Redundancies. discrimination in the workplace. and functioning in social. injuries. 176 . divorce and marital problems. bereavement. sexual harassment in the workplace. Through counselling. namely. or crime. depression and suicide attempts. perspectives. 1. Users of such substances are at greater risks for accidents. Other reasons for counselling include poor performance. some of the perspectives are positive yet they had been ignored. and involuntary turnover. referral. Counselling helps employees to change their attitudes and Counselling needs Counselling is provided because of the following problems that may be experienced by employees. Clarified thinking. low levels of education etc). counselling. disciplinary problems. sexual problems such as impotence. education. stress and burnout. Perhaps. Retirement-. Poor emotional and mental health can manifest itself in the form of inability to adjust to problems. These include loss of earning opportunities and reduced self esteem. and legal and financial difficulties. Counselling is supposed to assist such people to change their behaviour for the better. emotional tension is released. battering. Counselling can be very beneficial in such cases.

The counsellor would then help the employee to develop insights into the problem. Treatment/ Intervention The employee would then receive the necessary treatment. Examples are medical practitioners and specialized counselling units. Participative and cooperative counselling. 2. Consider the case of obesity. Non-directive counselling. prevalence. Education This is the stage where the counsellor provides information about the nature.this type of counselling assumes that the counsellor has the solution to the problem facing the employee. Here. and participative/cooperative counselling. likely causes and consequences of the problem. Counselling The employee and the counsellor discuss the problems and work out an action plan. 4. Thus there is a cooperative exchange of ideas in order to find an amicable solution to the problem. It provides a coordinate relationship between the counsellor and employee. the employee is assumed to be the best source of solutions to the problems he/she is encountering. 177 . Follow up Some form of monitoring is needed to ensure that the employee is carrying out the treatment and obtain information on the employee progress.At this stage the problem that warrants counselling is identified. It integrates aspects of both the directive and non directive counselling in that both the counsellor and the employee assist each other in solving the problem. non-directive. through skilful listening. Ideally there are three types of counselling namely directive. The employee may volunteer to undertake the medical tests or the supervisor may use a questionnaire to identify those behaviours that indicate the need for counselling. The counsellor seeks to motivate the employee to implement the solution. The problem could be medical or even emotional. It is also necessary to evaluate the effectiveness or the efficacy of the counselling programme implemented and to make adjustments where necessary. Directive counselling. to explain the conflict and issues surrounding it. The work of the counsellor is to encourage the employee. Referral At this stage the employee may be referred to an appropriate source of assistance. 6. 7. and ways in which the problem can be prevented. Cases of mental illnesses can be treated in a mental health hospital. The two parties discuss the problem in details but the assumption of a superior-inferior relationship is a major weakness of this approach. 3.

 Understand how managers respond to these changes. globalisation has opened up new economic opportunities and knowledge workers have created a new digital economy. however.CH. trading patterns and markets were stable. competition was limited to sectors and regions. 1. faster. Since the 1960s. In the past. technology was static. A trend is a general move in a particular direction. much of the world has been almost continually changing. and cheaper. Introduction The modern business world is experiencing various trends which are affecting how employees are expected to perform their duties. employees want more pay. speed in getting to the market was secondary. 21 New Trends in Human Resource Management Chapter objectives The learning objectives for this chapter are to:  Explain new trends in the business and the effects of these trends on human resource management. and hierarchies were generally accepted. 178 . Customers demand businesses that are better. customers were passive.

invest in its people. An organisation must. are assets to an organisation. and retaining workers in the new business environment has become more challenging. when the human resource manager was viewed as the recruitment specialist. as the business environment became more challenging. The manager needs to have a vision for the company. came in handy in the 1960’s and 1970’s. Individuals in the HR department were perceived as those responsible for planning company picnics. The human resource manager had to evolve to become a visionary and corporate philosopher in the late 1990s.Recruiting. The role of the contemporary human resource manager has become more important in the face of business competition. as an activity. In those earlier days. bringing up the need for human resource officers to become industrial relations negotiators. including the government in Kenya. since they contribute to the organisation’s objectives. therefore. The 1950’s and 1960’s were years of expanding economic activity hence the focus changed from welfare to recruitment and human resource planning since all organisations faced intense competition for labour. Workers. which vision should be in line with the organisation’s vision and mission statement. Trade unions. The role changed in the 1950s. The changing role of human resource management: A historical perspective The field of human resource management has undergone tremendous changes since the 1930s. 2. This forced businesses to carry out extensive cost-cutting measures. but unimportant part of the organisation. needed to possess industrial relations and negotiation skills. The human resource department was seen as a place where less-productive employees could be placed with minimal damage to the organisation’s ongoing operations. so that they can generate worthwhile returns. and retirement parties. Human resource management. in order to survive in those murky waters. backed by a flood of labour legislation. as well as legal knowledge. adjusted their legal frameworks to reflect the new economic realities and allowed businesses to make substantial changes in their labour in the light of the new business priorities. Many governments all over the world. especially in the areas of labour. The emerging trends have led to the need to re-envision and clarify the human resource role and to articulate its expectations to the individuals serving in this role. commonly referred to as human capital. managing. vacation schedules. maintaining. was seen as a necessary. therefore. Employers must be keen to identify these trends and to ensure that the employees are well taken care of in line with the trends. human resource departments were called “health and happiness” departments and the people assigned to deal with personnel issues were often those who were past their prime. The manager also needs to know the 179 . The human resource manager manager. A weakening of general economic conditions and unemployment in labour markets all over the world marked the 1980’s and 1990’s.

changing environmental conditions that occur in the marketplace.

3. Emerging Trends in Human Resource Management
Emerging trends in the management of human resources can be analysed by looking at the following aspects. 3.1 Employee Health and Safety With the rising cost of healthcare, employees are choosing not to be insured and treated, and are also bringing their physical and mental illnesses and injuries to the workplace. Work intensification is also leading to stress and stress- related illnesses. Although this problem can be addressed through adding more workers and automation, it can easily lead to more people suffering from mental health conditions or using medication. Further it can lead to increased workplace violence and absenteeism or a growing number of errors causing accidents with the resulting business costs. Therefore, the human resource manager has to be knowledgeable in stress management. The human resource manager will need to look into the issue of employee health to ensure that it is covered, so that the employees do not continually bring their illnesses to the workplace. The rising cases of terrorism in the world have also affected the mobility of labour across the world. Human resource managers have to look into the issue of security to ensure that expatriates are safe wherever they are posted for work; otherwise the foreign branches may lack qualified staff. Examples of cases of terrorism are the 1998 bombing of the USA embassy in Nairobi, followed by the bombing of the Paradise Hotel in Kikambala, Mombasa in the same year. Epidemics, such as HIV/AIDS, Ebola, Tsars, Asian Bird Flu and malaria, have brought in a new challenge to human resource management. The challenge goes all the way to the functions performed by the human resource manager, right from planning, recruitment, employment, maintenance, compensation, integration and separation. Discrimination due to sicknesses such as HIV/AIDS has led to businesses being sued by aggrieved employees. These epidemics have also affected employee output and, therefore, business performance. The cost of medical cover for such employees has also risen tremendously, therefore, affecting the company’s profitability. These epidemics have also affected the recruitment and maintenance of employees, with an increase of death rates of employees at their prime, thus making the costs of training and retention high. The human resource manager will need to look into the issue of recruitment, retention, development, and other areas of management in view of the changing scenario. He/she will need to know the company’s legal position in relation to such epidemics. Many organisations are also striving to enhance the quality of work life and personal lives of their employees and of the employees’ families. In-house health clubs, yoga, and meditation centres to relief stress, sports and cultural activities, employee get-togethers with invitations for the whole family, and day care centres are being provided by organisations. 3.2 Employee Relations The relationship between the employee and the employer has been changing, with the employee becoming a partner in the business through measures such as 180

employee stock ownership schemes. The implication is that the master-slave relationship is doomed to die a natural death. The human resource manager will, therefore, need to master ways of dealing with the employee cum employer in the workplace. These relationships also being encouraged by the quotation of companies in the stock exchange markets. As the employee-employer relationship evolves, employees are demanding more information concerning their contribution to the firm’s financial performance. Many firms are also faced with the challenge of retaining competent workers in the face of increased competition for top performers. Developed countries such as the United States of America will need to cope up with increased numbers of older workers, minorities and immigrants into their labour force. This may not be the case in developing countries such as Kenya where majority of the workers are relatively younger. Corporate governance is now a common issue of concern for human resource managers. The recruitment, selection and role played by a firm’s board of directors and senior leadership are being continuously reviewed to ensure that all organs of an organisation are working towards the common good for all stakeholders. Human resource managers are also concerned with ethical issues. The news media has been quick to report unethical business practices towards customers, employees, and any other stakeholders. More expectation is placed on managers concerning the activities of businesses. The aim is to ensure that business firms demonstrate good corporate social responsibility practices. 3.3 Globalisation Globalisation of trade and economy are taking deep roots in all countries. This refers to the tendency of firms to expand their sales, ownership and/or manufacturing to new markets abroad. For example, Toyota produces the Toyota Camry in Kentucky, while Dell produces and sells its personal computers in China. According to the World Bank, by 2025 India and China will provide 27% of the world’s GNP. All types of firms, whether small, medium or large sized in many parts of the world are trying to expand their investments into China and India so as to benefit form their large populations and resources. The world has thus become a global village. Free trade area agreements that reduce tariffs and barriers among trading partners (such as North America Free Trade Area, Common Market for East and Southern Africa, and European Union) further encourage this trend. More globalisation means more competition and more competition means more pressure to be “world class”, to lower costs, to make employees more productive and to do things better and less expensively. Quality human resources have, therefore, become an important base with which to respond to the emerging environment. Due to globalisation, human resource management processes have had to change. Employees have to be trained on how to sell or buy products and services from different parts of the world. They have to learn about international trade, since they can be sent to work in different parts of the world. Globalisation has made it easy for businesses to trade with one another without 181

much physical movement of staff. This means that employees can work in the locality of their companies, without having to move and be far away from the place of work and their families. The family and social life of employees is not interrupted very much. Some companies even sponsor their senior staff to go on holidays in foreign lands. This enhances motivation and productivity in the organisation. Globalisation has had major implications for human resource management. The continued expansion of businesses and the increased interdependence of countries have brought issues of outsourcing and off-shoring of resources, especially labour-related resources. This may take the form of outsourcing to new supplies or changing employment contracts to hire individuals as consultants rather than as employees, or to hire only highly skilled professionals. Outsourcing creates savings in investments, training, time, and other resources. It also creates a shift toward greater intimacy with contractors, the sharing of plans and capabilities, agreement on the level of quality in components and questions about how to deal with points of conflicts. This leaves the core employees to concentrate on the core activities of the organisation. The result is a change in the corporate culture, which also affects the output of businesses. As people intermingle with each other from different countries, they encounter different languages, laws, skills, and culture, among other things. The challenge here is to train people to know international laws, to have sensitivity skills, to learn foreign languages, and also to expand their level of understanding through education. Human resource managers will themselves need to be conversant with international labour laws and cultures. They may also need special skills to handle these changes. With continued globalisation, ethical and corporate social responsibility issues are arising in order to maintain the high visibility of the business in the eyes of the public. The pure profit motive no longer stands alone as the unitary focus of business. Issues such as consumer satisfaction, pollution caused by firms and exploitation of employees and of customers are gaining prominence. Employers must ensure that their work policies protect the environment and that employees combine business with ecology. Businesses may also be required to provide social amenities such as schools, hospitals, and infrastructures to the communities in which their businesses are based. Indeed, some organisations are often involved in unethical practices such as price gouging, falsifying data, and misleading adverts, among many others. Employees often require ethical treatment, especially in the areas of confidentiality of information, the rights to privacy, sexual orientation and harassment, exposure to safety and health hazards, equal employment opportunities, and employee honesty. Addressing these issues is necessary in order to create a conducive work environment in which employees are satisfied and retained. In the twenty first century, there is an increase in the concern for the natural environment due to the fast depletion of the ozone layer and global warming. Governments have enforced strict laws and regulations, in order to control the activities of their citizens and industries against pollution of the environment. 182

Firms have undertaken pollution control activities such as proper drainage of wastewater and avoiding burning of coal, which emits dioxide into the atmosphere. There are also regulations regarding how employees should be treated in the workplace and firms to provide safe work environments. Human resource managers have the obligation to ensure organisational compliance with these laws and governmental rules concerning the hiring, training and compensation of employees. In addition, the human resource manager has a significant role to play in the design and execution of a social audit, providing internal information to management and the external public on how the firm is socially responsible. Human resource managers should also educate the employees on environmental issues and activities that affect the environment. The human resource manager, therefore, together with the other managers, may have the responsibility of fostering good corporate citizenship on the part of the organisation. Companies will be called upon to provide more frequent statements of social responsibility in their communications with employees and other stakeholders, and the human resource department may have to play a very significant role in this process.

3.4 Technology
More and more businesses, large and small, are trying to incorporate the latest technology into their operations. Indeed, many of the improvements that make firms world class involve technology. Today, human resource professionals face the challenge of quickly applying technology to the task of improving their operations. The introduction of tea-picking machines in the Kenyan tea industry, though much resisted, has led to many employees being declared redundant. Other technological developments, such as the use of robots in some organisations, computerisation of operations (e.g. e-ticketing, e-banking, e-learning, etc.), electronic communication systems (e.g. audio systems, chat systems, teleconferencing, electronic mail systems, video conferencing), and information technological advances (e.g. computing, electronics, biotechnology, engineering, and transport) all have human resource implications. For example, the use of telephone and video conferencing provides low-cost alternatives for interviewing, by reducing the nagging costs of travel, accommodation, and incidentals. Electronic communication ensures that more ideas are availed for developing new products. Remote sites for video conferencing, computer managed games and simulations, videotaped lectures and interactive video training are relevant in providing “just in time training”. New softwares, such as Computer Aided Design, have been developed to assist the design of new products or modification of existing products. It is, therefore, evident that the increase in technological advancement has greatly affected the trend of human resource management. Technology has made it such that employees can work from the comfort of their homes and deliver results within deadlines. Telecommuting enables employees to balance their work and home lives. Companies are also employing skilled workers from all over the world. These global workers need not relocate, because they can work 183

This means. and industries where most of the assembly lines are automated and robots are used to do most of the manual work. therefore. mostly in the Third World. therefore. hence they juggle work and family obligations. In labour-intensive countries. The composition of technical or professional employees in organisations is increasing as work becomes more technical. This has resulted in personnel layoffs. they must also initiate telecommuting training. Some employees have young children or aged parents to care for. Managers need not meet face-to-face with the staff. especially in technical areas.virtually through wireless technologies and videoconferences. Moreover. because machines are taking over most of the work. They expect to receive opportunities for lifelong learning that is beneficial for any career changes. family activities. especially in developed countries. It is. but are also looking for personal satisfaction and meaning in their work. as well as to prevent theft. even to the smallest companies. Technology has also brought new methods of surveillance via the high-speed Internet.5 Changing Values and Expectations of Employees Employees are not content with merely earning a good salary. therefore. Due to this business trend. Employees expect to be recognised for the contributions they make on the job. it cannot be resisted and human resource managers must prepare programmes to cope with the new developments. and to look for employment in the relevant areas. and Kenyatta 184 . easier and more effective to monitor employees’ activities. Human resource managers. The use of robots and machines has greatly reduced the role of human resources in industries and firms. telecommuting and other innovative work arrangements are steps that employers can take to create this necessary balance. family leave. claiming invasion of privacy. Employees are looking for employers who offer flexible and family-friendly workplaces. The human resource manager must devise ways of managing communication changes. Companies like Unilever. that the human resource manager must find ways of motivating employees to work. 3. Workers in non-technical areas are being downsized. need these technologies to assist in avoiding costly lawsuits arising from criminal acts in the workplace and also to debunk false worker’s compensation claims. hence the need for legislation to limit intrusion of privacy. health and safety. Although technological advancement may result in job redundancies. The evolution of the web-based employee means that human resource managers must learn to work with the “away from office” employee. therefore. there is a tendency for employees to value leisure. Consequently. required to prepare separation packages. there is a need to balance the demands of their work and non-work lives. flexitime. Virtual offices. Human resource managers are. Workers may also file lawsuits against employers. workers are forced to learn new skills. Examples are found in banks where Automatic Teller Machines (ATMs) have taken over most of the tellers’ work. Kenya Breweries. for fear of people losing their jobs. and avocation assignments more than work. redundancies and retrenchments. The technology has become cheap and affordable. as they can hold conferences over the Internet via videophones. there has been resistance to introducing technology.

and recruitment. 3. especially in the national and international arena. Trade union politics is also another area that affects the trend of human resource management. There has also been an increase in the recruitment of minorities and women in the workplace arising from legislation and affirmative action in the society. Managers must grapple with this new trend in business. organisations must have the flexibility to implement new compensation and benefits concepts tailored to their business environments and strategic workforce requirements. in order to motivate and inspire employees and attract new diverse workers. 185 . therefore. 3. The human resource manager will.8 Demographics Demographic trends of concern to the human resource manager include an aging workforce in some developed countries and the growing diversity of the coming generations. This may call for redeployment of workers. employee replacement. emphasis on language and cultural diversities. societal politics. such as seeking for employment with client or competitor companies for a certain period of time. interested parties and lobby groups such as animal rights groups and environmental concerns. using methods such as non-compete contracts. They should strengthen the leadership competencies of their managers. 3. trade union politics. succession planning. This will affect the output at work. To meet these changing values and expectations and to become employers of choice. immigration. The human resource manager will need to develop ways of protecting the company.6 Politics The department of human resource management has to contend with politics ranging from parliamentary legislation. among others. They should offer a broad range of benefits and quality of work flexibilities that are tailored to the unique and changing needs of employees. These contracts may also require the employees not to start similar businesses within given areas for certain periods of time after leaving the employment. and special retirement incentive programs. Employment legislation will continue to be of great concern to human resource managers.National Hospital have cafeteria systems to cater for the workers. A flexible workforce is needed.7 Non-Compete Contracts Organisations have come up with non-compete contracts. This will bring about issues such as the outsourcing of labour. need to come up with measures to counter this. in which they bind the employees not to do certain things. The changing mode of trade unions and activism needs a new outlook towards the operation of human resource departments. if an organisation is able to respond to economic and political changes effectively.

The extreme effects of this have been layoffs. need to be restructured and performance appraisal systems must gauge how well employees are providing services and satisfaction to the customer. such as banking. especially for health insurance premiums and pensions. These include institutionalising pay freeze or reduction programmes. tying pay more closely to organisation success through profit-sharing schemes. Business firms are faced with the challenge of increasing productivity growth rates in general. healthcare. in which employees receive monetary bonuses for productivity increases. Strategies used to achieve this include gain-sharing programmes. Many firms. retailing. increased employee participation in decision-making and selfmanaging work teams. Human resource managers must make changes. 3. diverse workforce they need for the present and future purposes. Nowadays. numerous human resource initiatives and activities have been put in place. day care. Human resource managers must use innovative recruitment and hiring strategies to identify and quickly select the high-quality. including labour productivity. have experienced productivity crisis. There has also been a trend of many organisations moving into service businesses. There is also a need to create and sustain knowledge management systems to preserve expertise within the organisation. To curb the increased competition for skilled workers. mergers and divestitures. financial planning. organisations must continue to rely on workforce planning and forecasting to ensure they have the right people with the right skills in the right jobs. Jobs may. where Japanese automakers (such as Toyota. but also on product quality. and Mazda) are offering cars that are more affordable and superior relative to US automakers (such as General Motors). Honda. therefore. Ceteris paribus. Organisations should also 186 . They will also concentrate on succession planning and leadership development programmes. Employees with high demand skills often choose from multiple employment offers and take advantage of their marketability to negotiate for flexibility and desirable benefits. Controlling labour costs has become a key strategy in the private sector for improving the organisation’s competitive posture and in the public sector for maintaining taxes at levels acceptable to the public. The automobile industry is a classic example. Nissan. To implement this.10 Increased Competition There is a critical shortage of skilled workers in some occupations and geographic areas. and mail delivery.3. firms are competing not only on the price dimension. plant closings. New compensation programs such as profit sharing are also being implemented.9 Productivity Productivity refers to the output of goods/services produced per unit of output. local and foreign. such as employee quality circles. organisations with high productivity are more responsive. and requiring employees to pay a greater percentage of their benefit costs. Recruiting for highly technical occupations is becoming difficult. so as to pool highly-qualified replacements when experienced leaders leave. Labour productivity specifically refers to the output per hour.

Organisations in the alliance may decide to continue their relationships or terminate them once they have achieved their goals. and joint work in business activity from planning. Human resource managers have to develop a new set of human resource management competencies. while also maintaining a strong knowledge of national human resources. shared resources such as space. roles and responsibilities for human resources. such as business strategic partnerships and acting as change agents. This will enable them to apply human resource management principles to solve organisational problems and support line managers. staff requirements. Therefore. competitors and other outsiders. manufacturing. the structure of business changes and innovation occurs in the management and organisation of work. joint activities.12 The Business Alliance As new relationships are set up with customers. The alliance calls for management to change its attitude and facilitate and promote cooperation and new training on how to embrace and deal with organisations within the alliance. As line managers assume more hands-on responsibility for managing all aspects of the workforce. where line managers are increasingly held accountable for directly delivering some human resource management services. Each participant in the alliance enjoys the benefit of greater speed. and line management accountability for results.be agile in the delivery of “just-in-time” training to meet rapidly changing responsibilities and/or assignments. complementary skills and reduced risks. The human resource manager must operate with fewer rules. human resource managers must explore the many forms of business alliances. New models for doing business have developed. The alliance is aimed to attain goals in a timely and effective way at low risk. Flexibility is one advantage of the alliance. intimate and cooperative. timeliness. 3. For the benefit of the company.11 A Shift in Roles Human resource management is becoming a strategic function. 3. training and preparation and new rules and guidelines that have to be passed out to the company’s participants in order to make the alliance work. cooperative venture on either a long-term or a short-term basis. these changes must be reflected in shifting missions. expanded delegation of authority. This shift in roles requires line managers to be prepared to assume increasing responsibility and accountability for human resource management. 187 . These alliances involve two or more organisations coming together in a joint. The alliance has overtaken the traditional top-down control model of business (hierarchy) and is much more organic. which have implications for human resources. suppliers. sharing of plans. human capital practitioners will also shift to complex roles. and marketing to maintenance. It involves exchange of workers.

Al (2000). time and performance. Bibliography Ben Swanepoel et. rewarding. where employees are paid according to their performance and attainment of set targets. 2nd edition.13 Virtual Corporation The success of business alliances and other business-to-business relationships has enhanced the emergence of the virtual business or virtual corporation. In Kenya. this new development has resulted in more workers seeking additional knowledge and skills by pursuing further studies in universities and colleges. Indeed. unions. 4. Human resource managers must cope with the new models of business by anticipating them. This is common in the movie industry. considering customer expectations. who come together to put the financing and other capabilities together and. The human asset will need to be managed prudently. All these issues have brought new challenges to the human resource work. Zebra Publications. and the strategic decisions of organisations. directors. Conclusion New trends in business continue and human resource managers need to be on the move in order to compete in the market effectively. and the quality of the people engaged in various tasks. and that all the practices that are working today may not necessarily work tomorrow. workers would be employed on permanent and pensionable terms. market changes. where civil servants are being placed on performance contracts. and recruiting. and actors. worker expectations. South African Human Resource Management. location of worksites. More employees are enrolling in evening classes and part-time learning. 188 .3. In recent times. producers. once the task is over. to determine whether their contracts should be renewed.14 Performance Contracting Performance contracting is a new trend in the business world. disperse to new ventures. Most companies are employing workers on contracts of specified periods and their performance is appraised regularly. advocating systematic change. and retaining people who will be effective in the new business organisations and relations. Virtuality produces many human resource issues in terms of labour relations. This new trend has led to job competition. qualifications. Theory and Practice. with workers striving to improve their performance and skills in order to retain their jobs. Traditionally. 3. Performance contracting is also being adopted by governments such as Kenyan government. where employment is pegged to the performance of the worker. Cape Town. it is important to realise that change is here to stay. where the long lists of credits at the end of most films include writers. This has resulted in an explosion of knowledge. most businesses and organisations are focusing on performance contracting.

1st edition. 1998. New Jersey. Fossum. ( 2003).(2001) Human Resource Management (4th edition) Pearson Education Publishers. south-western college publishing. Heinemann. McGraw-Hill.Beach.S. MacMillan Publishers Inc. Michael Amstrong (2001) Human Resource Management Practice (8th edition) Kogan Page limited Publishers. London Nzuve.B. Management of Human Resources: A Kenyan Perspective. Personnel: The management of people at work (3rd edition). Schwab. Koontz.. revised edition. Jones. Heinemann.. Contemporary Management (3 rd edition). E. H. Richard D Irwin. G.N.R. New Jersey Flippo. P.Dale (1975). Peter (1955). 9th edition. M. Nairobi.P. ( 1997). 189 .I. Mc Graw Hill Book Co. R.. J. A. 4th edition. Publishers & Distributors. Organizational Behaviour & HRM. Go’mez-Mejia et al. & Jackson. D. Personnel/ Human Resource Management. Ohio.M. 3rd edition.A. Pearson Education International. C. New Delhi. Kaila.L. S. (2001).. Managing Human Resources.J (2003). (2000) Human Resource Management.. inc. Basic Modern Management Consultants. Management (8th edition).. (1984).T.. Human Resource Management. L.B. The practice of Management. Kotler. McGraw-Hill. & O’Donnel. New Delhi.) New Jersey: Pearson Education International. H. Mathis. G & George. Boston.. S. Drucker. Dyer.L. Ferris G. New York. (1984). (2003) Marketing Management (11th Ed. Gary Dessler.D.H. 1994). J. Personnel Management (6th Ed). prentice Hall. Luis R.

Chevrolet. the firm may be forced to go international or global.  Accessing the Global markets promotes innovation while intensifying global competition. It can be performed at a domestic. The desire to make better. INTRODUCTION A business is an independent activity formed to produce goods and services to be sold to people and other businesses at a profit. selection. Cardillac. Nike. 190   . This is how many businesses begin. Apple computers. 22 GLOBAL HUMAN MANAGEMENT Chapter objectives RESOURCE Following the completion of this chapter you should be able to:  Understand the motivations for global operations  Discuss significant global trends  Explain the different levels of global participation  Analyse how globalization affects the recruitment. International business means crossing many nations and international marketing therefore involves developing and performing marketing activities across national boundaries. When a firm engages in international marketing it becomes less exposed to the dangers of economic fluctuations particularly in the domestic market. compensation administration. and Saturn for use by customers all over the world. maintenance. For example. Some of the reasons are briefly discussed below.CH. Domestic business means marketing goods and services within the home country. international or global level. Global business means developing marketing strategies for major regions or for the entire would. Canada. Delloite and Touche. 2000: 109). Mexico. and Coca Cola gain a lot from global operations (Pride and Ferrel. Motivation for global operations There is a wide variety of reasons that make firms to start global operations. China. integration. training and development. less expensive products has led General Motors to develop products such as the Opel. Increased competition at the domestic level may lead to the loss of market share. Consequently. the USA Supermarket chain known as WalMart serves more than 90 million customers weekly in the USA. Brazil and Argentina. and separation of employees. Thus the firm may be faced with a declining domestic economy but the sales of its products may be increasing in another part of the world.

products. Probably the most re-known company around the world associated with a globalized strategy is Coca-Cola. This chapter will discuss all these issues. Firms must also make many decisions regarding the workforce. Significant Global Changes Global marketing is a strategy in which essentially the same marketing program is employed around the world. This creates a need for them to be introduced into the other markets.   Many companies. A firm may have special expertise/knowledge in the production of a product. However. In some countries the cost of labour is low hence setting up production facilities in those countries ensures that the products are produced at lower costs. sizes of the bottles and cans must conform to local regulations and costs. The market. even Cocacola adapts its strategy to local markets. This fact presents some interesting management challenges. work can be done more efficiently and effectively by engaging the best talent all over the world. small and big. a) North Atlantic Free Trade Agreement (NAFTA) 191 . Such expertise or knowledge may not available in the foreign market. For instance. One of the Global changes taking place is the formation of regional trade alliances. The products sold by the firm may have reached the decline stage in the domestic market. Some firms may wish to dispose surplus commodities to increase their production capacities. decide to operate A firm may wish to take advantage of the faster rates of growth in demand for its goods and services in the foreign markets. With the advent of telecommunications and information technology.    Occasionally firms may follow competitors who internationally. Examples of these are:  East African Community (EAC)  Economic Community for West African States (ECOWAS)  North Atlantic Free Trade Agreement (NAFTA)  European Union (EU)  Pacific Rim Nations  General Agreement on Tariffs and Trade (GATT) Some of these trends and their human resource implications are discussed below. This is known as the “me too” concept. and production processes must be co-ordinated on a world wide basis and organisational structures capable of balancing centralised home office control with adequate local autonomy must be created. markets and agreements. are finding that success depends on their ability to market and manage oversees operation.

most of the EU members agreed to transform themselves to the European Economic Community (EEC). the elimination of custom checks and the creation of a standardised currency for all members. Spain. improve efficiency. which began circulating in 1999 required business people to modify their pricing strategies and subjected many firms to increased competition. import duty and VAT. Italy. The long-term goals are to eliminate all trade barriers among EU nations.  It increased employment opportunities for highly skilled US citizens because they could now work in any of those countries. In 1992. NAFTA has increased USA investments in Mexico because of Mexico’s substantially lower costs for lower skilled employees. the EU was formed in 1958 to promote trade among its members which initially included Belgium. USA and Mexico into one market of about 374 million customers. the EU is working towards the standardisation of business requirements. For USA. The common currency. Some efforts have been made to expand the membership of NAFTA to other Latin American countries such as Chile and Brazil. this means that:  Many low skilled jobs went south decreasing employment opportunity for US citizens who lack high level skills. The USA and Canada already had a free trade agreement since 1989 but NAFTA brought Mexico into the consortium.NAFTA came to be in 1994 and effectively merged Canada. Portugal.  There was a greater pool for human resource managers to tap from. The aim of NAFTA was to eliminate all tariffs on goods produced and traded between Canada. France. West Germany. Austria. and stimulate economic growth thereby making the union economy very strong in the global market particularly against Japan and other Asian nations. To facilitate free trade. The EEC members engage in free trading with one another and the European Commission regulates their business activities. b) European Union (EU) Also called European Economic Community or European Common Market. c) Pacific Rim Nations 192 . Mexico and the USA and to create a free trade area by 2009. In 1991. Euro. Greece. Finland and Sweden had joined the union. Denmark. Ireland. By 1995. The agreement was prompted by Mexico’s increasing willingness to open its market and facilities in an effort to promote economic growth. the UK. East and West Germany united and the Berlin wall was torn apart. Luxembourg and Netherlands. Companies selling goods and services among the European countries have been saved the nuisance of dealing with many complex exchange rates.

a Country of more than 1. The changes taking place all over the world – the formation of trading blocks. expansion of the protection of intellectual property rights such as copyrights and patents. new markets and new sources of technology are opening up very rapidly. Sony. Taiwan. re-structuring its banking systems and increasing public spending on infrastructure. and the establishment of rules for trading and investing in services.2 billion people has launched a program of economic reform to stimulate its economy by privatising many industries. motorcycles. reduction of government subsidies to businesses. This was signed by 23 nations in 1947 and provides a forum for tariff negotiations and a place where international trade problems can be discussed and resolved. Less visible and less stable Pacific Rim nations such as Singapore. Firms must then be effectively managed so as to gain competitive advantages in the 193 . colour T. Currently it has over 100 member nations. Daewoo and Hyundai becoming household names. South Korea. The Japanese in particular have made tremendous in-roads into the world markets for automobiles. cameras. companies of the Pacific Rim nations – Japan. One of the outcomes of GATT was the formation of the World Trade Organisation (WTO) whose aim is to resolve any disputes or conflicts between member countries. Vietnam and Hong Kong have become major manufacturing and financial centres. piracy is a major issue and protecting a brand name in China is hard. Sanyo. Korean companies are now grabbing market shares in Japanese markets for videocassette recorders. GATT negotiations resulted in agreements to cut tariffs (taxes on imports) by 40%. Hong Kong. d) General Agreement on Trade and Tariffs (GATT). South Korea has been very successful in the global market with brand names such as Samsung. Singapore. corruption and erratic policy shifts. and computers although the Korean market for these products is limited. Thailand. Suzuki. In the recent past. For instance. Canon. Mitsubishi. Malaysia. watches. Thailand.V. China. the growth of Asia. Malaysia and Vietnam among others have become increasingly competitive and sophisticated in global business in the last three decades. among others.are all examples of events that are pushing companies to compete in the global economy.Despite the economic turmoil and a recession in Asia in the 1990’s. The potential of the Chinese market is immense but doing business in China has many risks which include political and economic instability (especially inflation). The Peoples Republic of China. Moreover. Toyota. As a result of these developments. audio and video equipment among other products. and Toshiba products are sold all over the world and have set standards of quality by which other products are often judged.

training and compensation of workers are done at the local level. He/she sets production facilities in that area and the capital needed may be little. 1990). human capital and economic areas but these challenges are less than those faced by firms operating on a larger scale. At this point recruiting. In deciding where to locate these facilities the owner might consider:  The availability of workers with the necessary skills  The political stability in the area  Proximity of raw materials  Cost of labour in that area  Educational level of people in that area Firms operating at the domestic level face challenges in relation to the political legal cultural. As the product grows in popularity. then human resource management for a firm that operates globally becomes a very important issue. LEVELS OF GLOBAL PARTICIPATION It is important to understand the stages through which firms pass through from being local firms to global operators ( Adler and Ghadar. determining the market rate of pay for various jobs is relatively easy. The entrepreneur who started operations in Nairobi may expand to Mombasa. Kisumu. This has to be dealt with by providing facilities such as day-care facilities or even redesigning the jobs. 194 . In many cases firms go through four distinct stages or levels of operation namely:  Domestic level  International level  Multinational level  Global level Domestic level Most firms start by operating within a domestic market place. An entrepreneur in Kenya may have an idea to satisfy a certain need within a small area.global market place. Since the firm is involved in only one labour market. And because the success of every firm depends on the calibre of the workers it has. A firm whose domestic country is the US maybe faced with the challenge of an increasing number of minorities and women in the labour force. selection. or Nakuru. The focus of selection and training programs is on the employees’ technical competency to perform job related duties and to some extend on interpersonal skills. the owner may choose to build additional units in different parts of the country to reduce the cost of transporting the product over long distances.

International level of operation
Increased competition at the global level may make the firm to lose market share in which case the firm responds by seeking alternative markets for its goods and services. The firm may opt to enter the international market gradually, beginning with exporting the products but ultimately by building production facilities in the other country. A firm which decides to engage in international competition must make many decisions such as the ones below.  In deciding where to allocate production facilities, one must consider whether a particular location provides an environment where human resources can be successfully acquired and managed.  The country’s legal system may also present other problems. For instance, France has a relatively high minimum wage which drives labour costs up and the laws in Germany allows employees to participate in the firm’s board of directors , a concept known as co-determination. Thus there may be a need to adapt to practices in the other country and to conform to their labour laws. In some countries the law requires you to employ a certain percentage of the local people ( i.e. the host country nationals) as a way of ploughing become the profits of the firm into the society from which the profits came.  Cultural differences may present conflicts, communication and morale problems. At this phase international HRM becomes manifest as managers are assigned to posts in the foreign markets to provide general management, technical expertise and financial control. Further, selection criteria such as technical competence, language skills, cross cultural adaptability and sensitivity are also important. Host country nationals are frequently recruited in the areas of sales, marketing and personnel because they have a better understanding of the local circumstances.

Multi-national level
Multinational companies build one or more facilities in another country or in a number of countries. The South Korean firm, Samsung, has facilities in UK, Germany, Portugal and Slovakia among other countries. Other multinational firms include Mitsubishi, Mitsui, Itochu, General motors, Sumitomo, Marubeni, Ford Motor Company, Toyota Motor, Exxon, and the Royal Dutch/Shell Group. Firms locate in many countries so as to take advantage of lower costs of production in the other country. Many firms from US have shifted to Mexico where the cost of labour is low; General Motors has a production facility in UK. This enables it to produce for the European market. The production and distribution cost is lower if the production is done in Europe. The Human Resource manager of multinational companies must understand the definitions used in these firms:  Home country/parent country/Domestic Country - it is the country in which the firm has its headquarters. The USA is the home country for General Motors; Japan is the home for Mitsubishi and Toyota motor 195

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corporations; Germany is the ‘domestic country for the Mercedes Benz brand of motor vehicles Host country - This is the country in which the firm has located its operations. The UK is a host country for General Motor Corporation. Third country - it is any other country the firm has or doesn’t have operations but with which it interacts eg as a source of raw materials. Home country nationals - these are people born and living in the domestic country; some may be working for the company. Host country nationals – these are the employees who were born and raised in the host country and not the parent country. Examples are the Kenyans working for General Motors in Kenya. Third country nationals - they are the employees working for the company but who are not from the parent or host company. An example would be a Tanzanian working for General Motors in Kenya. Expatriates - these are employees of the firm who operate in many nations. The HR Manager has the challenge of selecting expatriates, who are capable of operating in different settings, train them, and provide them with flexible compensation systems that take into account the different marker rates, tax systems and cost of living.

Multinational companies should employ many “in-patriates”- managers from different countries working in the corporate headquarters. These are mainly highly knowledgeable and competent staff who are to spearhead the firm’s strategy. The different managers may have different cultures therefore there may be a need to integrate the people from the different cultures who are working in the corporate headquarters into the culture of the company. Multinational enterprises also take managers from other countries and place them in facilities in other countries. An example would be a manager from Kenya working for a USA firm in Nigeria being transferred to head operations of the same firm in South Africa. This practise creates the need for cross-cultural training to provide managerial skills for interaction with individuals from different cultures. Firms operating at the multinational level seek to recruit the best managers regardless of their country of origin. The human resource manager is also interested in ensuring that all members share the same organizational norms and values, irrespective of the fact that they come from different countries. Other HR activities involved include management development, career counselling and periodic transfers to different assignments (after a specified number of years).

Global level of operation.
Global organisations compete on the state of the art (latest, top quality) products and services and gain competitive advantage by achieving the lowest costs possible. Multinational enterprises normally develop identical products and distribute them on a large scale while global companies produce products to meet the needs of particular clients. The products are customised, produced in masses but 196

adapted to different geographical areas. For example, Nokia has different fashions, Coca-Cola packages vary from country to country- these goods cannot be easily moved from one country to another without being noticed. Multinational companies locate their facilities in a country as a means of reaching that country sufficiently and effectively; Global companies locate its production in a country as a means of serving that region. The global firm may need to create synergy in its operations by integrating different cultures. As a firm enters the global market place, the HR manager must encourage flexible systems in HRM such as the following:  Since global companies have many corporate headquarters the employees should be selected, trained and compensated in such a way that they can operate trans-nationally.  The trans-national scope of the global HR manager refers to the fact that HR manager decisions must be made from a global rather than a national or regional perspective. There should be uniformity/fairness in the treatment of all employees with minor variations to accommodate for differences in taxation, cost of living, security and so on since every country is different from the other.  The employees and managers of the global company must have a transnational representation. This implies that every country is represented either by a manager or employees or in the employment practices.  The trans-national process refers to the extent to which the company’s planning and decision making process includes ideas and representatives from different cultures. The human resource manager should see the strength of diversity in the different cultures and consider the best practices in each culture in decision making.  Trans-national representation reflects the multinational composition of a company’s managers. Global participation does not mean that every country is providing managers to the company’s branches. Successful organizations need HR managers who will treat employees and managers from different cultures equally. This can be accomplished through combining selection, training, appraisal and compensation systems in such a way that managers have a trans-national, rather than a local orientation.

GLOBAL RECRUITMENT AND SELECTION
Introduction There are four approaches to managing and staffing international subsidiaries. These are:  Ethnocentric approach  Polycentric approach  Regiocentric approach  Geocentric approach

Ethnocentric approach
This is a situation whereby top management and key positions are occupied by people from the home country. This applies to those firms where the top 197

management believes that home country attitudes, management styles, knowledge, evaluation criteria, and managers are superior to anything the host country may have to offer. At Royal Dutch Shell, for example, most financial officers around the world are Dutch nationals. Japanese firms are also famous for being ethnocentric. The ethnocentric approach is used where there is no qualified host country senior management talent, where there is a desire to maintain a unified corporate culture and tighter control, and where there is a desire to transfer the parent firm’s core competences to the foreign subsidiary more expeditiously.

Polycentric approach
International subsidiaries are managed and staffed by personnel from the host country while the home office is run by parent country nationals. Examples are:  General Electric’s operations in Hungary include 8 factories and more than 8,000 employees most of whom are Hungarians.  Coca-Cola operates in over 160 countries and employs half a million people world-wide. In the polycentric corporation, there is a subconscious belief that only host country managers can ever really understand the culture and behaviour of the host country market; therefore the foreign subsidiary should be managed by local people. This approach reduces the cultural misunderstandings that would arise if expatriates were used. The locals may also be less costly to hire.

Regiocentric approach
This occurs where the staffing of the foreign subsidiaries is done on a regional basis. An example is a situation where a European subsidiary is staffed by Europeans from Britain, France, Germany and so on. A firm in Kenya may be staffed by employees from the East African Region. The catholic University of Eastern Africa draws the majority of its employees from Kenya, Uganda, Tanzania, Rwanda, Burundi, Malawi, Ethiopia, and Eritrea.

Geocentric approach
The firm ignores nationality deliberately and it searches on a world-wide basis for the best employees to fill its positions. This is because of the assumption that the best manager for a specific position anywhere may be in any of the countries in which the firm operates. This approach is used by global trans-national firms such as: - Bosch ( for handsets, iron boxes, car spark plugs) - Electrolux ( vacuum cleaners) - Ford motor company. The geocentric approach ensures a global culture is built. The human resource department is also able to use its resources more efficiently by being able to transfer its managers any where in the world.

Local and expatriate staff
198

They speak the local language and they are culturally assimilated. Locals then perceive the company as a better citizen. the host country government may press for the “nativization” of local management. Since they come from the parent country. It is easier for the headquarters to control them because they have been sent by the headquarters.The human resource manager makes a careful decision whether to use locals or expatriates. Use of Expatriates Advantages i. it is easier for them to transfer business and management practices from their country to the other. ii. In some cases. Use of locals Advantages Lower labour costs It demonstrates trust of the company in the local citizens. the local communities. They are assumed to be well versed with the firm’s policies and cultures. In the year 2000. They can have a longer term perspective of the operations of the firm as opposed to expatriates. Expatriate staffs are very costly. They are familiar with local markets. the average cost of an expatriate in Japan was $473.$253. The use of locals and expatriates has both advantages and disadvantages ( Hamil. 199 . Maximises the number of options available in the local environment Disadvantages It makes it difficult to balance local demands with global priorities It makes it difficult to take decisions that affect locals negatively examples of which are lay offs.000 per person per annum.000. It leads to recognition of the company as It reduces the amount of control a legitimate participant in the local exercised by the head office.390 per person per year. the local setting and the local economy. economy It effectively represents local considerations and constraints in making decisions specifically the culture of the country is easily incorporated. in the US it was approximately $88. 1989). It is difficult to recruit qualified personnel because the recruitment pool is limited. Due to the high cost of expatriates their use should be limited to situations where the local talent is not available.

The use of expatriates creates a pool of experienced employees who can be taken to any part of the world to head operations. They have a broader global perspective in decision making.g. The expatriates may be subject to government restrictions in areas such as salaries earned. This can be achieved using expatriates from the headquarters. When to use Expatriates Although expatriates are very expensive sometimes a firm may be forced to use them. iv. To ensure quality each subsidiary is staffed by expatriates. iii. vi. iv. Thus they should have more technical competences than local employees. ii. Disadvantages i. v. vi. expatriates are less prone to the demands of local political parties. In fact multinationals view a successful stint abroad as a required step in developing managers. v.iii. when the threat of terrorism exists and when there has been a recent history of social and political upheavals in the country. etc). They make the firm look “Foreign” ii. iii. high transfer costs. software) must be integrated to produce highly sophisticated products such as computers.this occurs mainly in developing countries (in Africa. Examples are IBM. Off shoring 200 . They are very costly e. It may discourage the local people when employment positions in the firms are taken by foreigners. Where the firm wants to develop a global corporation -wide vision. Some firms want their subsidiaries to have the same vision as the headquarters. iv. Latin America. When the political climate is unstable . when actual or potential turmoil within the country is serious. Linking production processes generally calls for greater reliance on expatriate managers and specialties which can bridge the gaps and tie the units of the entire organization together. They may have difficulties in adapting to the cultures of the host country. It may result in personal and family problems for the affected employees.corporations tend to rely on expatriates for top management when the risk of government interventions is high. In some cases the output of one subsidiary is the input of another subsidiary. Generally. They possess unique skills which are not available at the local level. high salaries and other costs. Local talent is not available . The output of these facilities (computer chips. Hewlett – Packard and Xerox which have specialized manufacturing facilities in different parts of the world. The expatriates provide reassurance to the home office that its activities are well taken care of. Firms rely on expatriates when: i. medical equipment and photocopying machines. When the operations at each subsidiary are highly interdependent. The employees are given a multinational orientation since they are rotated in different countries.

Afterwards they may feel that their home office has forgotten them and that their careers have been side tracked as they get reports of their counter parts at home climbing the corporate ladder. technically competent workers. Women face additional difficulties in international assignments especially where the majority of male managers believe that women are less likely to succeed overseas.  Establishing an effective supervisory and management structure to manage the workers. Nevertheless it should be noted that what matters most is core competences. Off shoring can be done electronically through the use of call centres e.g.  Ensuring that all the employees receive the careful selection and training they require. Some of the reasons why expatriate assignments fail are: i. Off shoring is a HR dependent activity because employers expect the HR directors to help identify high quality. Nevertheless. This leads them to impose their own country’s culture on host country’s employees. ii. not gender. Failure of expatriate assignments Despite the many advantages associated with expatriates. off shoring remains a controversial topic.  Ensuring that the compensation policies and working conditions are satisfactory. low cost talent abroad and to provide the necessary background data on things like wage rates. Kencall. 201 . Cultural shock Many people who take international assignments may not be able to adjust to a different cultural environment. many expatriates assignments end up in failure. and productivity. Arabic and other Asian countries are examples of places where women are rarely promoted to management positions.This is using local employees abroad to do jobs that the firm’s domestic employees previously did in -house. high quality. Japan. increased operation costs. low morale and poisoned customer and staff relations. Occasionally the clashes may escalate until the expatriate decides to return home after being frustrated and frustrating others. working conditions. Failure may be indicated by an early return. The HR challenges of off shoring are:  Identifying the source of low paid. This trend is growing especially in US because it provides cheap labour which substantially reduces the costs of operation. Career Blockage Initially many employees are excited about the opportunities for travelling abroad. a practice which may lead to cultural clashes and misunderstandings. lower productivity.

Failures can be very expensive . These difficulties may force the repatriates to leave the organization shortly after returning home. negative impact of the firm’s reputation. This may look very good in the short run but it will lead to the manager failing and by extension the firm failing. Ideally some of the difficulties that may be experienced on return include Lack of respect for acquired skills. the expatriates spouse or children may be unable or unwilling to adapt to life in another country. This is one of the most important reasons for failure. and reverse cultural shock. it should be noted that the traits needed to succeed in another country may be different from those needed at the domestic country. and the library. providing realistic views of what to expect. Poor planning for return position. Family problems In some cases. Couples chosen for international assignments should be those with preschool age children. lost business opportunities. Lack of pre-departure cross cultural training Few multinational enterprises provide cross–cultural training and those who do so provide limited training. vi. careful screening. Getting Rid of a troublesome employee Sometimes firms may send an employee on an international assignment as a way of getting rid of them. improved orientation. tourist brochures. v. and emotionally stable are less likely to fail. agreeable. the spouse could be provided with language training. expatriates returning home may have many difficulties. Nevertheless.iii. Often expatriates and their families pack their bags and travel to their destination with only their passports and legal documents and limited information gained from maps. Other approaches to achieve success include shortening the length of the assignment. The family should also have a strong bond of closeness and mutual sharing. iv. and personal hardships on the people involved and their families.some of the more tangible costs of failure include business interruptions. it is easier for them to adjust. Thus the wrong intentions can lead to failure. Over emphasis on technical qualifications A person chosen to go abroad may have impressive credentials and an excellent reputation in home office for getting things done. To ensure success. vii) Personality Expatriate employees who are extroverted. improved benefit packages and treating the expatriate with dignity. Difficulties experienced on return Often. Loss of status. These hardships can take the form of 202 .

Companies like Colgate-Palmolive therefore look for overseas candidates whose work and non-work experience. Selecting expatriate managers. adaptability. and lost income. education. marital strives. v. To ensure that expatriates don’t fail. resourcefulness and initiative. Explore the possibility of hiring foreign born employees who can Serve as “expatriates’ at a future date Japanese firms have been quite successful at hiring young foreign born (non-Japanese) employees immediately they are out of college so as to work in their home office in Japan. extra cultural openness and the family situation. Establish a selection board of expatriates Some human resource managers/specialists strongly recommend that all international assignments be approved by a selection board consisting of managers who have worked as expatriates for a minimum of 3 – 5 years. iv. Emphasize cultural sensitivity as a selection criteria The firm should assess the candidate’s ability to relate to people from different backgrounds. The success of an international assignment is influenced by job knowledge and motivation. and language skills already demonstrate a commitment to and facility for living and working with different cultures.Screen the candidate’s spouses and family 203 ii.diminished self-image. An interview worksheet for international candidates will look at variables related to motivation for the assignment. it is important to look at the following factors:i. health. it is highly desirable to choose candidates who have already spend some time in a different country. career planning and financial considerations. tarnished career reputation. Business schools which offer overseas internships make their students acquire some knowledge of a country’s language and customs by taking on a full blown expatriate assignment. relational skills. Require previous international experience In some cases. destabilized children. family considerations. This is because such managers have the experience required to detect who can fail and who can succeed. iii. flexibility/adaptability. . Such people can later be posted as expatriates else where.

An example of training would be a one day pre-departure training workshop. This would emphasize language skills. Exxon also meets with spouses and children during the selection process. flexibility and adaptability. For example. The main objective for training in global firms is to provide managers with the competencies needed for the successful transfer of technology. the emphasis is on language skills. customers. organizational 204 . This is complicated by the fact that the management may need to balance between centralization (degree of tight control by the headquarters) and decentralization. Development is broader than training because it seeks to improve organizational performance over the long run. However. and suppliers are from different cultural backgrounds. nation and culture orientation. This implies that the firm operates across cultures yet its workers. The first session of the training could be orientation training.An unhappy family can be a source of frustration and failure for an expatriate. Training and development for global firms is constrained by the concepts of geographic dispersion and multi-culturism. Ford Company normally screens the spouses on qualities such as patience. and training on business issues. respond to local competition. and career planning. Training tends to be individually focussed with a present or near future time frame. Both centralization and decentralization have advantages and disadvantages. attract local employees. It seeks to address particular deficiencies in individuals and to develop competences so as to improve the performance of the individual. local mentoring. Here. and penetrate local business networks. many firms prefer a continuous in-country cross cultural training during the early stages of an overseas assignment. stress training. Global Training and Development Careful recruitment and selection is just the first step in ensuring that the foreign assignment succeeds. The trainee must be prepared for the upcoming assignment. One such preparation is through training. It is therefore necessary to screen the candidates’ spouses and children. In fact most training is done for the managers of the organization. personal and family orientation. remain compliant with various government regulations in different countries. Extreme decentralization can be strategic in that it will enable a firm to modify its products or services to fully meet local customer needs. Some of the advantages of each of them are briefly listed below. The advantages of extreme centralization are:  Economies of scale in areas such as in purchase of raw materials  Improved value chain linkages  Product/service standardization  Global branding.

1992). The use of software and internet (including video clips) for cross cultural training is also becoming common. IBM uses rotating assignments to help its managers to grow professionally. to work effectively with and manage subsidiary staff. work on cultural “blind spots”. At other times. Build extensive understanding of the local culture and increase ability to understand and appreciate multiple cultural perspectives.culture and organizational philosophy from the headquarters to the subsidiaries. develop competencies for becoming an effective global leader. 205 . To help the employees manage their careers and finances better on return and to avoid re-entry shock. These assignments permit managers to form bonds with colleagues around the world and to make cross border decisions more expeditiously. Those managers who are returning home could be very instrumental in training the ones who are beginning their assignments. Training & development initiatives Cross-cultural orientation ( predeparture) Cross-cultural training ( in-country) Diversity training Language training Traditional education international management Organisational Behaviour Goals in Individualized coaching or mentoring on cultural experiences (Deep) Immersion experiences cultural Cross border global teams with debriefing Global meetings with debriefing or coaching International assignment rotations with debriefing or coaching Repatriation training Comfortably live and work in the host country. a firm may decide to have periodic seminars which bring together the managers from around the globe so that they can share their experiences with each other. The table below indicates some of the main types of training and development initiatives used by global firms. increase global leadership competencies. One major approach of developing managers is through rotating assignments. Increase cross cultural adjustment. Learn skills to be a better leader (or team member) with multiple cultures involved in the team. Increase ability to understand and appreciate multiple cultural perspectives. Learn skills to conduct a better meeting when multiple cultures are involved in the meeting Develop a deep appreciation for the challenge of working in another culture. Fluency in another language Increase international business acumen and knowledge To learn how attitudes are formed and how change is managed Build cultural awareness. and for expatriates to live comfortably in the new culture (Adler and Bartholomew.

and ready to admit what they don’t know (Iran).From the above table. The beginning point will be to make the expatriate clear about his or her own cultural background and how their culture is perceived by the host country nationals. For example Tanzanians perceive Kenyans as always being in a hurry. doing shopping in a mall. to keep a distance (Kenya). Factors influencing behaviour This type of training is aimed at getting participants to understand how attitudes. talk and analyze even minor issues (Indonesia). Cultural information This level of training focuses on the impact of cultural differences and it aims to raise the trainees’ awareness of such differences including how such differences impact on business outcomes. This relies heavily on behavioural sciences such as Organizational Behaviour and Principles of Management c. Information on the target country This level of training provides factual knowledge about the target country where the expatriate is going to be based. “surprises” can be avoided. Germans value promptness for meetings. visiting the museums and go sight seeing among other activities. learning the local values of currencies rather than calculating their equivalents. watching local news. An important aspect of adaptation is the ability to speak the host country language. b. attending social functions including religious services. Europeans perceive Kenyans as being poor time keepers and Kenyans perceive Nigerians as being aggressive. It is rare for expatriates to speak the host country language fluently. it can be summarized that oversees candidates require to be trained in four areas namely: a. motivated only by work (Colombia). reading local newspapers. 206 . talking to the local people. both positive and negative. As much information as possible should be provided at this stage. answer with a “yes” or a “no” response (Ethiopia). always obey rules even when the rules look minor (Turkey). it is recommended that they engage in activities such as walking around to know the neighbourhood. using public transport especially taxis to get around. With an accurate cultural self awareness managers can modify their behaviours to reduce dysfunctional characteristics. but the ability to communicate in that language is extremely important. It is also important for the expatriate to understand the culture of the host country and possibly adapt to it. For example. fraudsters and drug traffickers. The emphasis is on those types of behaviours and interpersonal styles that are considered acceptable in both business meetings and social gatherings. Training on the host country’s culture helps the expatriate to avoid costly mistakes and to adjust to the new work environment more quickly. Americans are perceived to be in a perpetual hurry (in India). In this way. For expatriates to adjust quickly to the new environment. are formed and how they influence behaviour.

music. however cultural elements include language. Some of the inter-country differences and similarities are explained below. Business schools that have a global reputation for training managers include London Business School. they are trained an average of 49 hours per year. terms and conditions of service. Harvard Business School. folklore)  Cultural universals  Cultural adaptations  Cultural borrowing  Attitude and values 207 . Change management It provides skill building in areas such as adjustment and adoption of new skills. where culture refers to the things valued and adhered to by the citizens. The concept of training and development varies from country to country but in many countries it is supposed to improve the technical abilities of the employees. aesthetics. and career management. 1.d. Besides. and Massachusetts Institute of Technology among others. social organisations. drama. compensation administration. while in Europe. INSEAD in France. There are many definitions of culture. INTERCOUNTRY DIFFERENCES AND SIMILARITIES Dealing with human resources on a global scale presents many complex issues especially in the areas of candidate selection. immigration processing. and the handling of spouse and dependants. payroll processing. In Asia. relocation processing. and education and so on. religion. The main cultural factors of interest to a human resource manager are summarised as below:  Language  Religion (belief systems)  Aesthetics (art. Besides these special training needs managers abroad should continue to undergo additional training and development using methods such as Seminars and workshops. After a successful period of a global assignment. Cultural Differences Countries differ widely in their culture. One must then be competent in change management. career planning and development. re-entry shock. University and college programs like the Executive MBA among others. This is because accepting the global assignment is accepting change. Classroom training is the most common method of training workers. employees are trained for an average of 26 hours. cultural and language orientation. tax administration. repatriation training is offered in the areas of financial management. the human resource manager has to deal with differences that exist between one country and another. dance.

in the Middle East. the work ethic is seriously encouraged. clashes between Muslims and Christians have been common. iv. 208 iii. In contrast Hinduism. Success is often measured in terms of wealth acquisition. ii. the role of the Muslim woman is mainly restricted to the household. and Judaism prohibits the consumption of pork and shellfish. gender roles. as practised in India does not encourage the acquisition of wealth. . Islam prohibits pork and alcohol. Hinduism prescribes abstinence from beef consumption. social institutions. Religious divisions can also cause instabilities in certain areas. Religious conflicts have also been noticed in the Indian Kashmir region. Religion Three quarters of the world’s population can be classified into the following religions in order of numbers:  Christianity  Islam  Hinduism  Buddhism  Shintoism  Animism Some of the impacts of religion on human resources and business activities are as follows: i. and social institutions. Family units. religious organisations or even the state passes on the Culture. In most Western European countries.   Social organisations (education. Religion also influences dress. For example. For example. political structure) Material culture (technology and economics) Reference groups Culture is shared and transmitted from one generation to another. Employees who are not able to make cultural changes may be caught up in a cultural trap. For instance. In these markets there is a large market for non alcoholic beverages and vegetarian products. Some of the cultural variables that are of interest to global human resource managers across the globe include: a. Hard work and success is a key value of the Christian teaching. Certain religions prohibit certain businesses. Moving from one culture to another is problematic and employees may need to make adjustments in order to work or even communicate in different areas. Employees who embrace the Hindu religion may not be so determined to work hard since they lack the motivation to acquire wealth.

thus there is plenty of human capital. two or more languages are spoken. before 1996. In the Muslim world. For example “Body by Fisher’ was translated as “Corpse by Fisher”. Education The educational system in a country leads to the creation of human capital. Germany also has a human capital shortage. India. Language It is important to understand the official and business language in every country. c. Nicaragua. in Britain petrol.v. For instance. Nigeria. One must recruit employees who can speak the language of the area the business operations are located in. In Germany. This explains why Japan has shifted low skilled work to some of its neighbours while maintaining high skilled work at home. the same word may have a different substitute. religion is a total way of life while in the western world. cookies. lateness is never tolerated and senior people are always addressed formally and with their titles. 209 . Haiti. An example is Ireland. Occasionally language translators may be required. This is much higher than many other European countries. China. plimsolls. Religious holidays also affect working patterns. and Somalia) have relatively low levels of human capital because of little investment in education. biscuits. all shops in Germany remained closed on Sundays while in the Muslim world virtually all type of work slows down during the month of Ramadan. Countries with low human capital attract facilities that require low skills and low wage levels. coming late for an important meeting is respectable. in Indonesia. English is the official language while French is considered as the language of diplomacy. Thus human capital is the availability of skilled manpower in a country. sneakers. Care should be taken in the process of translating because words can lose meaning or have poor connotation. It is determined by the educational system. Switzerland. In different countries. In the UK a large office is reserved for a very important person while in Japan offices are shared. In some countries such as Canada. and pavement will be translated respectively in USA to gasoline.g. and sidewalk. Some third world countries (e. In Netherlands the education system is free all through to the university. For instance. Countries with high human capital have attractive opportunities for direct investment. Sudan. which has 25% of all its youth attending college. and Belgium. In USA there is a high human capital shortage because the jobs created require more skills than are available. religion is an aspect of life and causes minimal business interruptions. In European countries keeping time is considered polite and reliable. b. A country’s human capital may affect a foreign company’s desire to locate there or enter that market. Russia has a free education system in spite of its poor infrastructure and economy.

green is associated with “mother nature”. Examples are:  Where the educational system is poorly developed. Aesthetics This deals with perceptions of beauty and different meanings of colour. White and green are associated with death in Muslim countries. there will be a shortage of trained people. performance. Gender roles are becoming invisible and less predictable.The combination of high educational levels. gift items should not have the name four in them because its pronunciation is associated with death. in Germany and Japan the masculine aspect is emphasised and is shown through showing off. and high unemployment makes a country attractive for investors because of the resulting high productivity and low turnover. In developed countries such as the USA. achieving something visible and making money. “hot”. and protecting the environment. and competition.       Social Organisations This defines how people relate to each other and is expressed in: The roles of men and women in the society Social classes Family Group behaviour Marriage Rituals The role men and women play in the society varies from culture to culture. e. “trendy things”. In Japan. women and men compliment each other. helping others. in the Middle East it is women who purchase goods hence all promotional and selling activities should be directed towards the women.  The level of education determines how the business will be conducted. For example. The promotion of products depends on the educational level of the citizenry. The educational system in a country also has many other implications. In some less developed countries. The human resource manager in that culture must stress assertiveness. and red/yellow with “fast moving”. In the UK. the colour black is normally worn in funerals while in Brazil funerals are attended in purple. d. Some cultures are feminine while others are masculine. the women and men are competing in the work place. success. For example. blue with high levels of achievement. white with purity. Similarly white flowers are associated with death in Japan while red is a good luck colour in many oriental cultures such as in China. In Kenya. 210 . The human resource manager should stress on service and care for others. For instance. black with sophistication. a strong work ethic. Feminine cultures are found in Sweden and Norway and emphasise on putting relationships before money.

They are very hard to change and managers should learn to take advantage of them. F) Cultural universals These activities occur across cultures and include gestures. compensation administration systems among other personnel practices. music. and Upper social classes as determined by occupation. people are expected to look after their own interests and those of immediate family 211 . the typical household is nuclear in nature while in other countries (India. A person with appositive attitude towards Kenyan products will continue to purchase them. Culture determines how the employees perceive managers. personal names. attaining higher levels of education. Moreover. workers expect managers to keep their distance. Examples are as follows:  In individualistic cultures such as found in the USA and UK. the Far East). In the UK there are three main social classes namely the Lower. In such cases. to be formal rather than informal. senior people are always addressed formally with their titles. The family unit is a fundamental unit of social organization in many societies. occupation. education levels. In many parts of Europe. In Mexico. they also expect the managers to occasionally give them gifts such as food baskets. or faith. In other cases such as the Indian “caste” system the social class is defined by purity. spiritual quality and power and these are determined at birth. training. people are grouped into social classes using criteria such as income. managers focus on seeking consensus among all parties and they encourage open exchange of views and a balancing of interest. b. courtship. businesses and so on and they maybe based on real facts. one cannot change their social class. Employees therefore perceive managers as solutions to all their technical problems. The managers selected for each region must be able to meet expectations for that region. the family can be extended to even two or three generations. The family unit can determine many decisions ranging from the sizes of goods purchased to the most appropriate communication methods. Implication of Culture on Human Resource Management Some of the effects of culture on human resource management are briefly explained below. In Netherlands. In some cases it is possible to move from one social class to another through say. religion.Social class – In every country. In Germany all managers are expected to show technical competence. performance appraisal. parts of Africa. Middle. wealth and so on. Culture affects the selection. Values and attitudes .these are beliefs about products. and trade among others. a. opinion. what motivates the employees and roles that managers are expected to play.

The level of education has some relationship with income levels. the cost of developing human capital is high. Collectivist cultures emphasise flat pay structures with the gap between the highest and lowest paid being less than twenty times. c.56 26. For example.83 23. For example.48 8.18 212 Sri Lanka Mexico Portugal Greece Britain Italy France USA Japan Netherlands Sweden Austria Switzerland Germany . d.20 20. such systems have little incentives for the developed workforce.12 5.89 20.56 16. 2. and performance appraisal. there are many opportunities to develop human capital because the education system is free. Culture influences compensation systems. socialism.g. In these countries. collectivist cultures promote participative decision making as opposed to individualistic decision-making.47 2. In capitalistic systems.  In collectivist cultures (e. those who invest in education benefit greatly. In socialist economic systems.98 19.94 21. Pakistan. Performance appraisals would emphasise how one fits into the larger organisation. or communism. Individualistic cultures are such that the gaps between the highest paid and the lowest paid individual in the same organisation can be even 200 times.60 17. A 2001 study revealed the following wage rates in different capitalistic countries: Country Cost in $/Hour 0. The health of the economic system also has a bearing on human resource management practices. Culture affects the common systems and co-ordination system. Consider the case for Kenya. Columbia. Taiwan) people are expected to look after the interests of society.58 21. A case in point is Russia.members.91 16. Additional years of schooling may result in increased income. every individual is analysed alone when it comes to selection. Economic Systems A country can be practising capitalism. training. However. However. wealthy nations have relatively high cost of labour.

Differences in economic systems affect human resource practices. UK) where workers can be laid off anytime and there are no maximum working hours. For example.The economic system determines the tax systems. infrastructure. in UK departing workers should be paid an amount equivalent to what they would earn in 2 years. These include the number of hours worked per day or per year. This contrasts the situation in other capitalistic countries (USA. and the influence of the World Bank/International Monetary Fund in each area where the firm is operating. There are also other differences in labour costs that need to be considered. For instance. Examples are given below:  In Portugal an average worker works for 1980 hours per year  A Kenyan employee puts in around 1752 hours per year  In Germany an average worker works for 1648 hours per year Severance pay varies from country to country. In Kenya. the severance pay is calculated at not less than 15 days pay for every year worked. France is a capitalistic country but has put many limitations on workers. Country USA Germany France Britain Netherlands Sweden Japan South Korea Kenya Highest Tax 40% 56% 54% 40% 60% 55% 46% 44% 30% Companies must compensate their expatriates considering differences in tax rates among other factors. Other economic variables of interest to a global human resource manager are consumption patterns. In Germany. the severance pay is at least one year’s salary. Legal and Industrial Relations Differences 213 . 3. inflation rates. The human resource managers are legally forbidden from discharging workers and the government limits the maximum numbers of hours one can work. Different countries have different tax rates. (Source: the Kenyan Employment Act 2007). urbanization. Political. economic integration and trade blocs. Per capita incomes also vary from country to country and it may be necessary to adjust for the purchasing power parity from one country to another. Socialist countries have a tax system that aims to redistribute wealth.

training. profit sharing.  Freedom to choose one’s occupation and be fairly compensated.  Safe and health working environment.  Regulations governing negotiations between unions and management have also been set in place. gender. benefits. This contrasts the situation in USA where policies.  Equal employment opportunities (the Equal Employment Act regulates the hiring and firing practices of firms)  Fair labour standards. perquisites. bonuses. Workers channel their grievances through “workers councils. In Germany. These variations directly influence the type of human resource management systems that must be developed to accommodate each particular situation. there are no trade unions. the law allows for co-determination whereby employees participate in making decisions that affect payment methods.  Freedom of association and collective bargaining. legal systems. Thus. the host country. In USA the laws allows for:  Non-discrimination (based on age. and regulations are set by the employer and workers’ representatives never sit in the board. human capital. lay offs and so on. transfer. The European Economic Community legal system allows employees’ fundamental freedoms such as:  Freedom of movement.  Equal treatment for men and women. some of the thorny issues considered include:  What components to include in the wages (base pay. In compensating expatriates.the minimum wages Act regulates minimum wages for a variety of jobs.) in the Workplace. and economic systems.  Social protection via social security benefits.Each country has its own laws which have a bearing on its recruitment. variable pay. and working hours among other areas. in Kenya very few firms would allow employees to sit in their board of directors. rules. or some other variation?)  Tax protection (how to protect expatriates’ compensation packages against the effects of additional foreign taxation) 214 . In many European countries. every country varies in terms of its culture.” A work council is a formally elected group of workers’ representatives that meet with the management every month to discuss issues affecting workers ranging from non-smoking policies to holidays. The workers representatives also sit in the Board of Directors meetings. incentives)  Where to establish the compensation basis (is it the home country. training and compensation of employees. Compensation of expatriates Firms can use compensation packages to enhance the effectiveness of expatriate assignments. nationality etc. Similarly.

benefits. tax equalization allowances. clothing. car expenses etc. This is to prevent perceptions of inequity. Expatriates are often offered a salary premium beyond that of their present salary so as to induce them to accept the assignment.       iii) Generally. personal care. The employer estimates what each of these expenses is. transportation) Discretionary expenses (child support.) Reserve (savings. The greatest incentives are normally reserved for the least desirable location such as Eastern Europe (Russia) where there is poor air quality. Tax equalization allowances are necessary because tax rates vary all over the world. pension contributions). and unattractive housing. and allowances. The balance sheet approach focuses on the following main expenses: Income taxes ( paid to federal and local governments) Cost of housing ( for a principal residence) Cost of goods and services ( food. or parent companies or should it be split among the companies?). This approach of equalizing income of expatriates across the countries considering the purchasing power in each country is known as the “balance sheet” approach. The basic idea is that each expatriate should enjoy the same standards of living he/she should have at home. Avoid having expatriates fill the same jobs held by locals or lower ranking jobs. in the expatriates home country and what it is in the host country. education allowances. mobility premiums. Compensation policies can create conflicts if local employees compare themselves with expatriates and find there is a big disparity between them. 215 . Who should be paying (is it the home. Other firms may offer a lump sum upon successful completion of the foreign assignment while others offer a combination of these incentives. The following guidelines can assist in compensation of expatriates: i. Examples of allowances given include cost of living allowances. political instability. payments for benefits. ii) Provide an explicit “add on” incentive for accepting an international assignment. Local employees tend to compare their pay and living standards to expatriates and feelings of inequity are more likely to arise if an expatriate at the same level with a local employee is paid the same level of pay. hardship allowances. The company may provide a ‘sign on’ bonus before departure or it may offer the employee a percentage increase of the home based salary. recreation. The employer then pays any differences between the two. Shipment and storage (costs associated with moving and/or storing personal belongings). housing allowances. host. the total pay package has four elements namely base salary. Provide the expatriate with income which is equal to what they receive at home. These incentives take many forms. relocation allowances and Foreign Service premiums.

Employee health and safety at the global level.  Equip the expatriates’ vehicles and homes with adequate security system  Tell employees to vary their departure and arrival times and take different routes to and from work. Employers have had to institute more comprehensive safety plans including evacuation plans to get employees to safety if that becomes necessary. Another health issue affecting workers is the spread of HIV/AIDS. This disease is ravaging Africa and spreading rapidly across other areas of the world such as Asia and Eastern Europe.  Tell them not to draw attention of their identity or nationality. In the process of travelling. HIV/AIDS has serious human resource implications.  Have travellers arrive at airports as close to departure time as possible and waiting in areas away from the main flow of traffic where they are not easily observed. they should not use public means other than taxis. 216 . living abroad and information on the place they are going to.  Expatriates should also be advised on those areas which are considered unsafe to visit. They should also not be involved in late night deals. Organizations may be subjected to lower productivity stemming from absenteeism.  When the expatriates arrive in the host country. and lower morale. T-shirts or shirts with their country names are some possible ways of drawing attention to identity. The increased threat of terrorism is affecting the human resource activities both domestically and abroad. discourage them from inviting strangers into the hostel. It is depriving communities and nations of their people. thereby draining the human and institutional capacities that fuel sustainable development. skill shortages.  Keep employees constantly informed of crimes.  Advise them not to take antagonistic positions against their host country governments. It is important to keep travellers out of crimes way. Body language can attract perpetrates and those who look like victims become victimized. threats and other problems in almost every part of the world. For example the USA and British governments have passed many laws that make it difficult to import and export workers since 9/11 terrorists attacks.  Advice employees to remain confident at all time. Other approaches include insuring the expatriates.  Where the expatriates are housed in a hostel. Suggestions for include:  Provide expatriates with general training about travelling. According to the International Labour Office (ILO). This is particularly the case where they would be “unique” in the vehicle or train they are travelling in. Wearing flag emblems. expatriates must resist gifts from strangers no matter how friendly the strangers look like.

Ch. These roles are briefly listed below. and people within the system in developing an intervention strategy  Explain the different types of intervention strategies Management of change Change is making things different.there are four focus areas in the fight against HIV/AIDS. management and mitigation of the impact of HIV/AIDS on the world of work. manager. and elimination of stigma and discrimination on the real or perceived HIV status. whether it originates from within an organization or from the external environment. The role of change manager In the change process the change manager: . Forces for change and innovation The pressure for change can arise from a number of sources within the organization. 22 ORGANIZATIONAL CHANGE AND DEVELOPMENT Chapter objectives After reading this chapter. create organizations that are responsive to change and assist in the introduction of specific change programs. is a constant feature of organizational life and understanding change is extremely important to successful management. In managing change it is necessary to understand the role played by the change manager and the change agents. Change. care and support of workers infected and affected by HIV/AIDS. and changes in the top management. These include declining performance. It is basically a departure from the status quo. External forces for change include the need to comply with new political or legal forces.  Understand the basic theories and concepts of OD  Describe the planned change model  Explain the roles of the change agent. Managers need to be able to adapt to change themselves. growth of the firm. or even changes in technology. These are prevention of the HIV/AIDS. economic changes.Oversees the design of the intervention strategy .Has the overall responsibility for assessing the need for change 217 . it is expected that the reader will be able to:  Define organizational change and development (OD).

competence and the skills needed to implement the change. advises the change manager on implementation issues and the efficacy of different intervention strategies. Internal change agents are more quickly available and are less costly to the organization. process specialist. Such a person must have knowledge of OD theories. practices and applied research. they posses better knowledge regarding the organization’s mission. b) External change agents. trainer or educator. facilitating all the activities surrounding the design and implementation of the strategy. structural components. technical specialist. internal politics. It is easier for the organization to control them grant them the necessary authority for performing their duties. and social factors. Moreover. It is expected that they have more technical knowledge. they can easily establish a trusting relationship with the change manager and members of the organization that will undergo the change. This person assists the change manager in designing and implementing change strategies. In situations where they are viewed as part of the problem. concepts. alternative identifier. this may create additional resistance. they may have more objective views of the organization besides having more experience in dealing with diverse problems. The change agent plays the roles of an advocate. Nevertheless. collaborator in problem solving. The internal change agent may not possess the specialized knowledge needed for a particular intervention strategy. This manager must understand the nature of planned change as opposed to ‘forced’ change He or she should be able to balance the short-term needs with the potential for the more permanent long-term benefits of planned change This manager should pay the necessary attention to the change initiative and see it through to its conclusion Change Agents: The role of a change agent can be filled by an outside consultant.- Is responsible for determining the appropriate intervention activities The change manager is also responsible for implementing the strategy and evaluating the strategy implementation process. a) Internal Change agents: These are people who work in the organization. they work on a contract basis. internal change agents may be too close to the problem and they may have biased views thus lacking objectivity. Role of the change agent: Burke (1987) describes eight roles that a change agent may play. Consequently. and reflector: 218 . an OD specialist who is an employee of the organization. a new manager or an enlightened manager who is able to look beyond traditional approaches. technology. they may be reassigned to other work in the organization even when they are implementing change in a certain department. As such. These may be consultants who are hired to fulfil a specific function or role for a specified period. Thus. fact finder.

Self interest.MODELS OF PLANNED CHANGE The change process theory seeks to explain the dynamics through which organizational improvement and changes take place. In organizations. poor timing of the change. manipulation and cooptation. RESISTANCE TO CHANGE Employees often resist change even when the change is for the better. showing support to those who are likely to be negatively affected by the change. 219 . friendships. .Presenting a proposal and adopting the change .Misunderstandings and lack of trust in those individuals initiating change. Scholars of ethics may question manipulation. Generally. and refreezing. the process of implementing change in any organization can have six steps namely: . prestige or other benefits) which the person values . participation and involvement of all the people that are to participate in the change process.Implementing the change . negotiating and agreeing with the stakeholders. as well as explicit and implicit coercion.Different assessments of the effects of the change . the change being too sudden or unexpected. According to Kurt Lewin (1958). The main theories include the work of Kurt Lewin (1958) and Edgar Schein (1987). Some of them include education and communication with the organizational members before the change occurs. freedom to make decisions. and at times peer pressure.this is resistance based on the fear of losing something ( power. a model for change would include the elements of unfreezing. ORGANIZATION DEVELOPMENT (OD). Afterwards it is reinforced as the accepted behaviour in the organization. there are two major reasons for resisting change.Perceiving an opportunity . These are general reasons and change specific reasons.Diagnosing the situation and generating ideas . The unfreezing part seeks to make the employees aware that the status quo is not good and that a change is necessary. The general reasons for resistance include inertia where people do not want to disturb the status quo. quality of work. cooptation and coercion as methods of overcoming resistance. resources.Low tolerance for change METHODS OF OVERCOMING RESISTANCE TO CHANGE There are many methods of overcoming resistance to change.Monitoring the results.Planning to overcome resistance . The change specific reasons for resistance are as follows: . The change is then implemented. changing. This is an aspect of human behaviour. use of rewards for those who comply.

 Socio-technical interventions. b) Team building: It is aimed at helping workgroups to become effective at task accomplishment. They are directed at improving interpersonal. One way to increase their long term prospects is by using OD.  Organizational transformation strategies These types of interventions are briefly explained below. it borrows the assistance of a consultant or facilitator who uses behavioural sciences to implement his or her efforts.  It is managed from the top level of the organization.Organization development is a process used to enhance both the effectiveness of an organization and the well-being of its members through planned interventions. The well-being of organizational members is a primary concern of OD. methods and relationships among workers (Friedlander and Brown. 220 . intra-group.it is a proactive and not a reactive process  It focuses on the entire organization or a large subsystem of the organization such as a division. 1974). They include: a) Job enlargement: This is an attempt to increase satisfaction and performance by consolidating work functions from a horizontal level of the work unit so as to provide greater variety and a sense of the whole task. technology. anthropology and management Organizations must be ready to cope with changing environments. Thus it can be summarized that OD is:  Planned. It is also a top management supported long range effort to improve an organization’s problem solving and renewal processes particularly through a more effective and collaborative diagnosis and management of organizational culture with a special emphasis on the formal work team. OD INTERVENTION STRATEGIES There are four types of intervention strategies namely:  Human process based interventions  Techno-structural interventions. Human process-based interventions. a) Survey feedback: Nicholas (1982) defines survey feedback as the systematic feedback of survey data to groups with the intent of stimulating discussion of problem areas. Techno-structural type of strategy intervention: These strategies are intended to improve work content. and stimulating motivation for change. sociology. generating potential solutions.  It is based on planned change or interventions made with the help of a change agent or third party who is well versed in the behavioural sciences such as psychology.  It is aimed at enhancing organizational health and effectiveness by ensuring the organization achieves its goals and objectives. and inter-group relations. The main interventions here are survey feedback and team building.

way of thinking. c) Becoming a learning organization A learning organization is one in which everyone is engaged in identifying and solving problems. Sociotechnical Systems (STS) type of intervention: These include the following. An organization that wants to become multicultural must be able to make some fundamental changes to existing organizational paradigms (value cultural differences). These are skill variety. autonomy. enabling the organization to continuously experiment. and dealing with external customers and suppliers. improve. The organizational take on the new set of values will affect how individual workers relate to others in and outside the work setting. mission and strategy. The main approaches here are as follows. task significance. Priority is given to the problems and nearly all employees are given time off to attend the meetings. c) Alternative work schedules (AWS): These allow employees to modify their work requirements to satisfy their personal needs. 221 . and feedback. a) Cultural changes/interventions Cultural change is a complex process of replacing an existing paradigm. work methods. with another. The QC meets on a regular basis to discuss issues like improvement of the work procedures and product quality. b) Strategic changes Lawler et al (1989) define strategic change as any fundamental change in the organizational purpose or mission requiring system-wide changes. and increase its capability. There are five aspects that constitute an enriched job. d) Self-managed teams (SMTS): This is a team whose members have discretion over such things as work assignments. working conditions and facilities.b) Job enrichment: This approach Involves varying some aspect of the job in order to increase the potential to motivate workers. The two most common AWS interventions are the compressed workweek and the flexitime. task identity. Organizational transformation (OT) strategies They focus on articulating a new vision for the organization with a purpose of redefining the desired organizational culture. c) Total quality management (TQM): This approach seeks to sustain the organizational competitiveness by instilling quality in all its operations. a) Quality circles (QC): This approach seeks to get employees involved in making meaningful work decisions like solving job-related problems. training. work schedules.

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