CHAPTER THREE

PLANNING FUNCTION

1. Choose an organization you are familiar with and critically evaluate

effect of its hierarchical nature and Bureaucratic structures on the
performance. The
organization we choose is ministry of revenue and we have tried to look at some of the
advantages and disadvantages of its bureaucratic structure and its hierarchal nature
Bureaucratic organizational structures have many layers of management, cascading down
from senior executives to regional managers to departmental managers - all the way
down to shift supervisors who work alongside frontline employees. So, authority is
centered at the top, and information generally flows from the top down. For example, a
senior executive may implement a new policy stating that employees must have all
overtime approved by management before actually working the overtime. The new policy
will go from the desk of the senior executive all the way down to the frontline employees.
When we look at its effect on its performance it has its own positive and negative efect
positive effect of Bureaucracy
1. Specialization: A bureaucratic organization provides the advantages of specialization
because every member is assigned a specialized task to perform.
2. Structure: A structure of form is created by specifying the duties and responsibilities
and reporting relationships within a command hierarchy. Structure sets the pace and
framework for the functioning of the organization.
3. Rationality: A measure of objectivity is ensured by prescribing in advance the criteria
far decision making in routine situations.
4. Predictability: The rules, regulations, specialization, structure and training import
predictability and thereby ensure stability in the organization. Conformity to rules and
roles in the structural framework bring about order to cope with complexity.
5. Democracy: Emphasis on qualifications and technical competence make the
organization more democratic. Officials are guided by the prescribed rules, policies and
practices rather than by patronage or other privileged treatment.
Negative effects of Bureaucracy
1. Rigidity: Rules and regulations in a bureaucracy are often rigid and inflexible. Rigid
compliance with rules and regulations discourages initiative and creativity. It may also
provide the cover to avoid responsibility for failures.
2. Goal Displacement: Rules framed to achieve organizational objectives at each level
become an end to themselves. When individuals at lower levels pursue personal
objectives, the overall objectives of the organization may be neglected.
3. Impersonality: A bureaucratic organization stresses a mechanical way of doing
things. Organizational rules and regulations are given priority over an individual’s needs
and emotions.
4. Compartmentalization of Activities: Jobs ore divided into categories, which restrict
people from performing tasks that they are capable of performing. It also encourages
preservation of jobs even when they become redundant.
5. Paperwork: Bureaucracy involves excessive paperwork as every decision must be put
into writing. All documents have to be maintained in their draft and original forms. This
leads to great wastage of time, stationery and space.
6. Empire Building: People in bureaucracy tend to use their positions and resources to
perpetuate self interests. Every superior tries to increase the number of his subordinates
as if this number is considered a symbol of power and prestige.
7. Red Tape: Bureaucratic procedures involve inordinate delays and frustration in the
performance of tasks.
Every organization comprises of people who run it. These people share common goals and
objectives. In order to achieve them, these people also share roles and responsibilities with
each other.
An organizational structure is simply the pattern or network of division of these roles and
responsibilities. Thus, which person has to perform which task is what the organizational
structure explains. Such a structure also depicts the hierarchy in which members of an
organization rank themselves.
The main purpose of such a structure in the organization we choose is to help the
organization work towards its goals. It brings members of the organization together and
demarcates functions between them.
Secondly, the structure also helps in ensuring smooth and efficient functioning. In other
 words, it reduces time, money and efforts. This happens only because every person knows
what her responsibilities are. Work happens with precise coordination with minimum
wastage of resources.

Question # 2. Undertake a thorough assessment on the effect of group and individual relationships

on employee’s productivity; satisfaction; motivation, tenure period; productivity and
organizational competitiveness.

Employee relations and Employee Productivity

Both positive and negative effects by unions on performance have been identified. Unions can cause a
“shock effect, whereby they induce managers to alter methods of production and adopt more efficient
personnel policies (Kathryn, 2008 cited in Som, 2015). The benefits of this are offset, at least in part,
when unions favor restrictive work practices, such as clauses that hamper the introduction of new
technology and cause firms to pay more for labor than necessary. Unions can reduce staff turnover and
this may be of benefit to a business, because high turnover can reduce productivity in a workplace
through a direct loss of firm-specific. Unions stress seniority rules and these can be a positive factor as
there is a positive relationship between productivity and experience, and a seniority system may
emphasize ability and merit (Rawashdeh & Al-Adwan, 2012). Seniority rules can also reduce conflict
between seniority and efficiency Unions can improve worker morale and motivation. The potentially
arbitrary nature of decisions such as promotions or layoffs can be reduced by the presence of unions. For
example, the employee is more likely to see his employer as fair. Leibenstein (1966) emphasized that one
of the major areas for improving what he calls“

X-efficiency in the firm is worker morale and motivation. Unions improve communications between
workers and management. The opening of communication channels between management and workers
can result in integrative rather than distributive bargaining (Dworkin & Ahlburg, 1985). A number of
negative factors have also been identified. One of the most well-established effects of unionism is the
raising of wages, and the associated impact on labor allocation, firm profitability and impact on
employment (Kathryn, 2008) Strike activity is of concern as workdays lost directly affect productivity, as
does non-cooperative behavior that precedes or follows strikes. Importantly, unions may repress R&D
spending and investments when union rent seeking acts as a tax on the return on investment and limits
innovative and investment activities. Further, unions may force firms into inefficient personnel hiring and
firing practices.

The Impact of Workplace Relationship to Employee Satisfaction

Going to work every day can be stressful when there is an employer or colleague with whom you struggle
to get along. It can leave you feeling unsatisfied at the end of each workday -- and for that matter at the
start of it. Eventually you may start looking for other employment. If each person did this, the business
would suffer because of its retention issues. The fact is, it already suffers from a morale issue, yours and
maybe others'. An employer who recognizes the impact of workplace relationships to employee
satisfaction, and encourages flexibility and interaction, can transform a brittle workplace into a
productive, satisfying environment.

Individual and Group Motivation in the Workplace

Motivation is used in the workforce not just to attract individuals to that organization but to keep them
there. One definition of motivation "has to do with a set of independent/dependent variables relationship
that explain the direction, amplitude, and persistence of an individual’s behavior, holding constant the
effects of aptitude, skill, and understanding of the task, and the constraints operating in the environment"
(Campbell & Pritchard, 1976). Numerous studies have shown that group motivation has a positive
correlation to a better work environment.

There are many companies that are beginning to realize the importance of aligning compensation and
reward systems aimed at reinforcing the employee’s objective.

Clearly, a major motivation for working is money for both team and individual, but money in and of itself
is not important, it acquires importance as a means of fulfilling needs. The importance of money should
not be overestimated. One survey asked that if you were to get enough money to live as comfortably as
you would like for the rest of your life, then would you continue to work. Over 63% of those who
responded to this survey did say that they would continue to work. It appears that money is important if
the employee views it as a means to a desired end, but it is definitely not the sole vehicle for satisfying all
of the employee’s needs (Aldag & Brief, 1979). A second area that might motivate individuals and teams
is social interaction. Work is social. The importance of the social aspects of work is a function of several
factors in addition to the employee’s need-state (Aldag & Brief, 1995).
Tenure period
The results of the present study showed that age and organizational tenure do not moderate the
relationship between organizational identification and job satisfaction. However, job tenure has a
moderating effect on this relationship. With other words, while the time employees have worked
in a particular organization doesn’t have a moderating effect on the relationship between
organizational identification and job satisfaction, but the total time employees have performed
their jobs moderates this relationship.
Organizations try to improve their effectiveness continuously. Job satisfaction which is
positively related to job performance is a fundamental factor for an efficient organizational life.
Organizational identification on the other hand, leads to increased support of the organization
and decreased employee turnover has positive effects on employees’ effort, cooperation and
citizenship behaviors which contributes to the job satisfaction. According to the findings of this
study age does not seem as a moderator between organizational identification and job
satisfaction. It is considered there could be some variables other than age, which affect this
relationship. In future studies other variables can be tested in terms of their effects on the
relationship between organizational identification and job satisfaction.

Productivity for organizational competitiveness

The organizations across the geographical boundaries have been confronting with economically
challenging and chaotic business environment. The organizational leaders are burning the midnight oil to
enhance the ability of the firm to provide quality products or services to their customers at a competitive
price in the marketplace – local, regional and global. The policy makers as well practitioners across the
industry sectors fully believe in the management of performance and productivity as two key drivers
which if leveraged properly will enhance overall organizational ability to be competitive in the global
world economy. However, the management of performance and productivity in an organizational context
is not an easy task as they depend upon motivated human resources who are managed through system-
driven HR processes wherein the organization believes in "mind-share" than "market-share." Such a kind
of HR policies and systems create an organizational climate wherein caring about employees’ concerns,
fostering employee engagement, involvement and retention at workplace become a normal but extremely
powerful rituals played by persons in the leadership roles. Furthermore, it is also a well-established fact
that the management of performance and productivity not only helps increase organizational
competitiveness but also add to the economic growth of the country.

3. “Organization is an important tool to achieve organizational objectives," Critically

comment and support with real work place experiences. Objectives of an Organization:
Meaning, Features and Importance

Meaning of Objectives:

Objectives refer to specific, measurable ends. They are identifiable goals towards which all organizational
activities are directed. They are the end results of the organization’s operations. Objectives are the
specific targets or standards against which actual performance can be measured.

“It is a future target or end result that an organization wishes to achieve.” Planning is meaningless if
objectives are not framed. Objectives serve as guide to planning i.e., planning is directed towards specific
objectives.

Production target of 1,000 units every month or profit after tax of Rs. 10 lakh every year are the specific
and measurable goals or objectives which can be estimated and verified. Objectives are the precise end-
results which an organization wants to achieve.

Features of Objectives:

1. Challenging:

Challenging goals require innovative and creative organizational members. An organization with aspiring
work force accepts the challenging goals. They do not find the routine objectives attractive.

2. Attainable:

Goals, though challenging, should be attainable. People work hard to achieve challenging and innovative
goals but goals should be within their skills and abilities. Managers should, therefore, frame goals which
can be achieved within the constraints of physical, financial and human resources.

3. Specific and measurable:

Goals can be tangible and intangible. Intangible or “qualitative goals involve subjective judgement about
whether or not a goal is reached.” Assessing manager’s performance or worker’s morale are the
qualitative goals. Though important, they cannot be easily measured unless some quantifiable standards
of performance are framed. “Quantitative goals encompass objective numerical standards that are
relatively easy to verify.”

Production target of 2,000 units every month is a specific and measurable goal which can be estimated
and verified. Objectives can be broad (qualitative) or specific (quantitative). As broad objectives cannot
be measured, specific objectives are framed to achieve the broad objectives. Increase in sales (broad
objective) can be achieved by framing specific objectives of how much increase in sales (say, 10 per cent)
and in what time period (say, one year).

4. Time limit:

Goals must be achieved within a specified time-period. Organizational performance should be reviewed
and assessed at regular intervals so that goals can be achieved within the specified time-frame.

5. Supportive:

Goals at lower levels should support the higher-level goals, short-run goals should support the long-run
goals and goals of different departments should also support each other. If the organization wants to
increase sales by 5%, production department should support this goal by producing 5% more and finance
department should also release funds for producing and selling more.

6. Hierarchy:

Objectives at different levels of the organization form an ends-means chain or a hierarchy where
objectives at one level provide an end and a means for attaining objectives at the higher level.

7. Priority:

At a point of time, an organization has multiple goals and, therefore, goals should be arranged in the order
of priority. This helps in optimum allocation of scarce resources over different objectives. A business
organization, for example, should lay priorities for profit- oriented activities and non-profit or service
activities. This ensures efficient utilization of resources.

8. Flexible:

Objectives are flexible. Depending upon the internal and external environmental variables, they can be
changed to ensure the organization’s survival. If the initial purpose for which the organization was
established is achieved, there can be additions/deletions in the existing objectives so that organization
continues to operate.

An organization that was initially established to look after war victims at the time of World War changed
its objectives to look after social and public health once the war was over (The Indian Red Cross Society).
Objectives can also be added to sustain or grow an organization. An NGO can add a wide variety of
social objectives to its existing objectives like lung health, anti-tobacco campaigning, old age homes,
child nutrition, women education etc.

Importance of Objectives:

Objectives provide the following benefits to organization:

1. Basis for managerial functions:

Objectives provide basis for all managerial functions. Planning, organizing, staffing, directing and
controlling are directed towards organizational objectives. Unless organizational objectives are clearly
identified, managerial functions will not be effectively carried out.

2. Basis for organizational existence:

Objectives provide foundation or legitimacy to business organization. An organization will not come into
existence if it has no objective to achieve. Objectives enable the organization to make its profile (identify
its strengths and weaknesses) and relate it with environmental profile (opportunities and threats).
Organization can, thus, relate itself with the environment.

3. Basis for various types of plans:

Different types of plans like policies, programs, procedures etc. are directed towards organizational
objectives. If objectives are clear, managers will be able to make the plans. Clearly defined objectives
encourage unified planning. They promote vision of the future so that instructions can be given to move
in the right direction.

4. Standards of performance:

Objectives provide standards of performance against which actual performance is measured.

Organizational performance is directed towards objectives. Objectives, thus, provide the basis for control.
Deviations in actual performance are rectified and performance of sub-units, units and departments is
synchronized in a common direction.
5. Unity of action:

Objectives provide unity of action. All organizational activities related to all departments (production,
marketing etc.) are targeted towards organizational objectives.

6. Motivation:

Objectives at one level are a source of inspiration and motivation to achieve goals at higher levels.
Workers strive hard to achieve innovative and challenging goals. Rational and attainable objectives
motivate employees to work hard. Organizational goals should also satisfy personal goals. If goals fulfill
personal needs of employees, they feel motivated to contribute to organizational goals also.

7. Basis for coordination:

Objectives coordinate the efforts of people in different departments. Individual, sectional and
departmental goals are coordinated towards corporate goals. They also integrate the efforts of individuals
with those of the groups and the organization.

People as individuals (internal and external to the organization) cannot think differently from groups and
the organization. Creditors, suppliers, customers, employees — all depends upon how well the objectives
of the organization are defined.

8. Basis for decision-making:

Decision-making is goal-oriented. Objectives frame the areas for discretion within which organizational
decisions can be made.

9. Basis for organization structure:

Organization structure is designed keeping in view concepts like depart mentation, span of control,
delegation, decentralization etc. All these activities have to move towards a common direction. Framing
realistic and attainable objectives play important role in this regard.

Multiplicity of Objectives:
One may generally think that objective of business organization is to make profits and that of a non-profit
organization is to provide service or meet the needs of various constituents of society (stakeholders).
However, this is not always true.

All organizations have multiple objectives. Emphasis on one goal (profits) may ignore other goals
(growth, market share, innovation etc.) which are also important for long-run survival and growth of the
organization.

In the modern times, having only one goal (profit maximization) is unethical as business operates in the
social system. It influences various elements of society and is influenced by them. It has multiple
objectives to meet the needs of different sections of society. This not only helps the business meet its
primary goal of profit maximization but also ensures its long-run survival in the market.

No single objective can ensure success of the organization. Multiple objectives enable a business to
influence diverse interest groups which interact with it. They provide opportunity to the firm to optimize
its resources and frame plans, priorities, philosophies and policies towards them.

Some of the multiple objectives of business organization are economic objectives (profit maximization,
high productivity, optimum allocation of resources, customer creation, innovation), organic objectives
(effective utilization of manpower, development of human resource, participation in management,
training and motivation), social objectives (customer satisfaction, remove social problems, fair trade
practices, employment opportunities) and national objectives (development of backward areas, generation
of export surplus, contribution to research and development, provide social justice).

Hierarchy of Objectives:

There is generally a hierarchy of objectives viewed as the means-ends chain. Objectives at different levels
of the organization form a hierarchy where objectives at one level are end in themselves and means for
attainment of objectives at the higher level. Together objectives at all levels form an integrated chain.
Objectives framed by top managers to achieve growth rate of 15% is an end of top-level.

In order to achieve this growth rate, sub-objective for middle-level managers is to increase sales.
Increasing sales is an end of middle-level managers but means for achieving goals at the higher level.
This process goes on till objectives are framed for each level in the organization. Objectives for each level
are an end in themselves but a means for attaining objectives for higher levels.

In a hierarchy, goals/objectives are generally framed at three levels:

1. Top level: Strategic goals,

2. Middle level: Tactical goals, and

3. Lower level: Operational goals.

1. Strategic goals:

These are the formal goals framed by top managers and address issues related to the organization as a
whole. These goals ensure survival and successful working of a business enterprise. According to
Drucker, there are eight major areas in which organizations frame strategic goals. These are:

Market standing, innovation, human resources, financial resources, physical resources, productivity, and
social responsibility and profit requirements.

2. Tactical goals:

Each department sets specific goals to promote overall organizational goals (strategic goals). Tactical
goals are the goals of specific departments framed by middle-level managers. While strategic goals are
general in nature, tactical goals are specific. They are stated in measurable terms.

3. Operational goals:

“Operational goals are targets or future end results set by lower management that address specific,
measurable outcomes required from the lower level.”

These goals are framed by lower-level managers for divisions or sub-units of each department. As tactical
goals help to achieve strategic goals, operational goals help to achieve both strategic and tactical goals.
These levels of goals form a means-ends chain where goals at lower levels provide a means to attain the
ends (goals) at the higher level.

In the hierarchy of objectives, there should be complete coordination of objectives at different levels of
the ends – means chain so that right means contribute to the right ends. Lack of coordination can lead to
goal distortion and goal displacement.

Due care should be taken by managers to ensure that there is:

a. No disagreement amongst the unit’s operating at different levels regarding the means for goal
accomplishment.
b. No influence of personal biases and judgments on the part of any organizational member that
negatively affects integration of the links involved in the ends-means chain.

Question #4. Select any public or private company, and perform the following staffing
related managerial function: Recruitment, Selection, Training, Developing, Promotion and
Compensation of Personnel.

Every organization, large or small, uses a variety of capital to make the business work. No matter
the industry, all organization has one thing in common: they must practice human resource
management to make their capital work for them, to serve as source of information and guideline
for new recruits or existing employees or other stake holders pertaining to human resource
policies and procedures, to create work force stability and commitment by establishing clear &
transparent working procedures, which enhance performance management & appropriate
rewarding system.

This staffing related managerial function (Human Resource Management) practice is intended to
provide guidance to employees regarding various aspects of employment with AHFA PRIVATE
LIMTED COMPANY (APLC). This HRM practice shall apply to all APLC employees both
management and non-management.

PROCUREMENT

It concerned with obtaining of prophet kind and right number of personnel at the right time and
at the most Economical rates so that organizational goals could be easily accomplished. It deals
specifically with such subjects like human resource planning recruitment selection induction and
placement.

1.1 HUMAN RESOURCES PLANNING.

1.1.1 Human resources planning shall be an exercise that helps Ahfa PLC to:
a. Identify its short- and long-term human resources needs.
b. Obtain and retain required numbers and skill in line with the organizations corporate
plan and mission.
c. Make best use of the available human resources.
d. Foresee problems of redundancy
 e. Keeping abreast of the succession gaps that may arise as a result of promotion,
separation or project expansion.
f. Identify training and development needs ahead of time.
1.1.2 Ahfa PLC human resource plan shall be based on its corporate strategies and
requirements of specific activities
1.1.3 The following factors shall be considered in forecasting demand and supply of permanent
and contractual employees.
a. Past data of human resource with respect to acquisition, retention, and attrition shall
be assessed. Statistical techniques may be used when deemed appropriate.
b. Assess internal resources by skill and capacity level as measured by experience,
performance evaluation, etc. in order to determine the appropriate level of external
recruitment.
c. Cost of recruitment shall be estimated.
1.2 STAFF RECRUITMENT
In APLC the HR Recruitment is practice on analyzing the requirements of a job,
attracting employees to the job screening and selecting applicants hiring and integrates
the new employee with other department and props with our organization our
Recruitment activity.

a. in support of the corporate mission, APLC is committed to recruiting and retaining

staff recognized for their technical excellence, integrity and dedication, and who will
collaborate with colleagues and clients on the basis of mutual respect and shared
goals. APLC policy is at all times to engage in ethical and responsible business
practices and to make employment decisions based on acquiring the most qualified
staff available to fulfill its mission.
b. APLC’S HR policy is to appoint or promote from within the organization whenever
possible, while actively applying the principle of equal employment opportunity.
When a qualified candidate is not available from within, then APLC will hire from
outside of the organization.
c. The human resource office works closely with supervisors and managers in
determining appropriate and cost-effective recruitment strategies. All major
 recruitment activities, such as placement of advertising, screening of candidates, and
organization of interviews and offers of employment are handled by the human
resources office in the head office.

1.2.1 Sourcing
a. In line with its policy of acquiring the most qualified staff available to fulfill its mission,
recruitment at APLC is based on competitive recruitment practice of attracting as much
qualified applicants as possible for any vacant positions and choosing the best qualified.
Hence vacancies are publicly announced through newspapers, boards and other means.
b. Despite the above, APLC’S may opt for other recruitments approaches like head hunting;
if justified for shortage of time for announcement and other reasons.
c. The human resource office shall issue advertisements based on employment requisition
which shall be approved by the executive director or in case of recruitment of executive
director by the board.
d. The human resources office, gets the requisition approved by the executive director and
will proceed with the hiring process. All approved vacant positions are posted in the
appropriate newspaper as well as on internal boards to ensure that current employees
have the opportunity to apply. Employees who are interested in a vacant position can
apply directly to the human resources office.
e. Vacancy advertisements shall include
I. Position title
II. Major duties and responsibilities
III. Person specification
IV. Outline of selection criteria to be used
V. Location of duty station
VI. Information related remuneration
VII. Application procedure
VIII. Closing date for application
IX. Other relevant information
f. Vacancies shall be advertised for a minimum of 7 consecutive days.
1.2.2 Applicant registration & short listing
a. Applicants will submit their application to the human resource office or the respective
program as appropriate either in person or through email or postal address.
b. The human resource in charge or the program manager as appropriate or jointly shall
shortlist potential candidates on the basis of the information in the application or
preliminary interview or test as the case may be.
1.2.3 Screening
a. APLC may employ interview and examination test to screen candidates as deemed
necessary.
b. The selection committee established at the head office level shall administer interviews
while the HR office administers examination test.
c. The decision to hire a new employee is made by the selection committee or relevant
manager in consultation with the human resource office or the executive Director.
d. Employee selection in APLC is practice on example the candidates which can meet the
job position and evaluate the result based on the exam after that they will have an
interview about the job and related things finally we evaluate the candidates for specific
job and selecting an individual for employment on certain qualification skills knowledge
and Experience Recruitment process induction of employees or orientation is concerned
with any employee to the organization.

1. TRAINING AND DEVELOPMENT

Once the personnel are obtained the next step is to develop on them. APLC use different
employee development methods like core and fundamental training, Here in APLC
Training and development program are practice based on the department and the specific
job.
a. APLC recognizes that its success largely depends on the knowledge, skills and
expertise of its possible. The organization aspires to provide employees with the
opportunity to develop their skills and knowledge to the maximum extent
possible.
b. The aim of APLC’s human resources training and development policy is to
improve the effectiveness and efficiency of the organization through improving
employees’ performance in their present jobs, and developing a multi skilled work
 force capable of operating flexibly, and responding rapidly and effectively to
changes in the sector.
c. The best training takes place in the ‘real’ situation, i.e. in the normal course of
work through training on the job, coaching, counseling etc.
d. The best form of development is self-development and organizations training
policies are designed to help employees to improve their performance and to
develop their skills and knowledge.
e. All training programs shall be organized after conducting a through needs
analysis and will be geared to fill identified skill or knowledge gaps.
f. The human resources office provides or support training and development
programs through;
I. Orientation
II. Lecture type(classroom) training
III. On-the-job training
g. Training programs may be conducted at any time including after office hours,
holidays and weekends.
2.1. Identifying training needs
a. Every year managers shall assess training needs in consultation with employees, with
reference to strategic and operational plans and in particular with reference to outputs
from the annual performance appraisal system.
b. The identified need of each unit shall be forwarded to the human resources.
c. The human resources office complies the needs, prepare annual training and
development plan submit to the executive director for approval.
2.2. Personal development
APLC, as part of its ongoing career development program, encourages and supports
employees’ personal development in attending local formal education; APLC’s support in
this regard includes leave for exam purposes, use of annual leave for studying etc.
3. COMPENSATION POLICY
3.1 OBJECTIVES
The basic objectives of the compensation policy are to;
I. Attract the best-qualified persons available, as required to meet APLC needs;
 II. Provide equitable remuneration to employees in accordance with assigned duties and
responsibilities;
III. Motivate and stimulate employees to perform at above average levels;
IV. Encourage the retention of qualified personnel.

3.2 Elements

Compensation is intended to be comparable to that offered by other organizations with similar

missions in the sector. For this purpose, comparison is made on the basis of the total
compensation, including the benefit package.

I. Salary grades are established through periodic review of compensation movements

external to APLC.
II. The classification of jobs within the position structure is established through periodic
evaluation of the job requirements and through comparison with other jobs within the
organization.
III. The classification of employees within the position structure is established through
periodic evaluation of the individual’s capabilities and demonstrated performance.

Each employee is assigned to department of work unit. An employee assignment determines who
his or her direct supervisor is. The direct supervisor is responsible for managing the employee’s
performance and for conducting performance planning and reviews. An employee’s assignment
also indicates his or her duty post.

III.3 SALARY STRUCTURE

a. APLC salary structure consists of grades, which recognizes and provides career
advancement opportunities in stream of activity in the functions, managerial and
organizational support areas. Movement between streams will in most cases be
both possible and encouraged.
b. Classification within a stream reflects an individual’s current role; it does not
imply that the individual does not possess skills or experience relevant to other
streams.
 c. Grades 1 through 6 represent position that is generally classified as “non-
management”. Grades 7 through 9 are “management”. Individuals with jobs
classified within these grades are generally not entitled to overtime.

III.4 salary decision

a. Before a new hire is made, a job description for the position must be prepared and
approved, and the position classified within the salary range.
b. A recommendation on the actual salary level within the approved range to be offered
to a selected candidate will be made by the human resource in-charge and confirmed
with the executive director.
c. The decision on the salary within the approved range will be based upon the
following.
 The candidate’s previous experience relevant to the position
he or she is to fill;
 The qualification of the candidate, including relevant skills;
 The current market for the candidate’s professional skills;
d. Merit increases: the primary basis for salary advancement and increase are on the job
performance and availability of fund. Appropriate consideration is given to other
factors, such as length of the service and relationship of salary to that of others doing
comparable work.
e. Salary increases due to significant changes in Responsibility: An employee who is
appointed to a new position within the organization that carries significantly
increased levels of responsibility are eligible for a salary review at the time of the
new appointment.
III.5 salary payments
APLC employees are paid monthly and in arrears at the end of every month. Direct
deposit allows staff to have salary payments automatically deposited, without charge,
into personal accounts in specific bank. Money deposited directly is available on payday.
(24th to 26th of each month.)
III.6 PAYROLL DEDUCTIONS
 a. Required by Law: payroll deduction for pension contribution and income taxes are
required by law.
b. Permissible by law: APLC is permitted to take deduction for various reasons,
including but not limited to, for un reconciled funds and services advanced to employees.
C. Salary deductions can be made for the aforementioned reasons required by and
permitted by law.

III.7 SALARY ADVANCES

a. Advanced on salary may be available for new employee in cases where regular
payroll schedule would cause undue hardship, and for eligible employees who
experience catastrophic injury or illness or in emergency cases where regular payroll
schedule would cause undue hardship the employee.
b. The new employee after completion of probation period may receive up to 25% of
his or her monthly salary.
c. Other eligible employees with more than six months service (other than “b” above)
may receive salary advance of up to 50% of monthly salary after 15 day from the last
salary pay day.
d. This advance is repaid by the employee in an automatic deduction from his or her
first paycheck.
e. If an employee leaves APLC prior to repayment of the advance will be deducted
from any final payments owed the employee.

III.8 OVERTIME
a. Supervisors are responsible for scheduling the work of their staff within the regular
hours the normal workweek. Hours worked up to 48 hours are not considered over-
time and therefore will not be compensated.
b. For purpose of calculating overtime, APLC’S work week is the seven day period,
Monday-Sunday. However, if the type of employment and the nature of the work
necessitate to work on Saturdays and Sundays, there will be no overtime payment.
 c. When necessary to accomplish a task, a supervisor may ask a staff member to work
beyond regular hours.
d. Overtime work must be authorized by the supervisor, in advance. A supervisor’s
signature on the over time form on which overtime is claimed is taken to signify that
prior authorization for the overtime work was given.

4. INTEGRATION AND MAINTENANCE

In APLC policy that all permanent staff are entitled to receive the standard package.
Generally, APLC staffs are provided with employment benefits that take into account a
variety of factors, including the country’s employment laws and practice.
4.1 BENFITS
4.1.2 LISTS OF EMPLOYMENT BENFITS.
a. Pension plan
All permanent employees are required to participate in the pension plan as per the
relevant law. Contractual (temporary) staff, daily laborers and consultants’ are not
eligible to participate in the pension plan.
Contribution to the plan shall be in accordance with the relevant law. In any case both
the employee and APLC will contribute for the plan of monthly basis.
b. Insurance (medical) coverage
APLC, with the view of having a healthy work force, provides free and comprehensive
medical cover.
The human resource office directs, supervises and follows up the implementation of this
policy and matters related thereto.
c. Annual leave
Annual leave is essential to good health and general well-being, both physical and
mental. Hence, APLC employees are expected and encouraged to take leaves
regularly. The objective of APLC annual leave policy is to provide employees with
an opportunity to get away from their job periodically, for pleasure and recreation,
without loss of salary.
Accrued leave time is to be used each year as earned at times that are consistent with
the individuals work schedule. Leave plans must be discussed with, and approved in
advance by the employee’s supervisor.
d. Maternity leave
A pregnant employee shall be granted paid leave for medical examinations
connected with her pregnancy; however she has to present a medical certificate of
her examination. She is also entitled to maternity leave pay during her pregnancy in
accordance with Ethiopia law.
Pregnant women will be granted a period of 30 consecutive days of paid leave
preceding the due date and a period of 60 consecutive days after the birth of the
child. Maternity leave is in addition to the sick leave and vacation leave benefits
available.
e. Paternity leave
An employee whose legally recognized spouse gave birth is entitled to paternity
Transportation allowance
APLC may provide monthly transportation allowance to cover employees cost of
transportation. The amount of transportation allowance and staff entitled will be
determined by APLC and updated annually to reflect conditions of the labor market
and in line with the tax regulations.
f. Representation allowance
APLC provides representation allowance for executive directors position only, for
justified reason and when it is more than one month representation by a senior staff,
the amount of which will be determined and updated regularly to reflect the labor
market conditions.
g. Hardship allowance
If and when required, APLC may pay a hardship allowance for hardship areas in
Ethiopia identified by concerned authority.
h. Severance pays
For employees whose services are determined prior to the end of their APLC project
due to reasons beyond their control, a severance payment may be paid according to
the requirements of Ethiopian law.
 i. Legally required benefits
APLC provides and participates in all legally required benefits for all eligible
employees.

References

AHFA Private Limited Company Human Resources Administration Manual.

Andrej Huczynski and David Buchanan (2001): Organizational behavior

    4th edition, Shandur publishing, UK.

k. Prased(2005),Strategic Human Resource Management, MacMillan Ltd,India

Magazine of HARC (2010-11), mega printi