Micro link Information Technology

and Business College

Department of Management
Master of Business Administration

Course Title: Human Resource Management (HRM)

Individual Assignment
By:- Lielti Aymut Abrha
ID No:- MBA0239/23
E-mail: lieltim19@gmail.com
Submitted to: MEHARI HAILE (PHD)
E-mail: haileg2003@gmail.com
Date: - 04/04/2024 G.C
Maichew, Tigraiy

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1. Explain the Similarities and differences between HRM and personnel management

Human Resource Management (HRM) and Personnel Management are often used
interchangeably, but they have some key
Similarities:
1. Together Human Resource Management HRM and Personnel Management
involve managing the people within an organization, containing recruitment,
training, performance management, and employee relations.
2. Equally aim to maximize the performance and success of employees to achieve
organizational goals.
3. Mutually disciplines recognize the significance of workforce planning, talent
management, and employee development.
4. In cooperation are essential functions indoors an organization’s overall
management structure.
Differences:
1. Human Resource Management (HRM) focuses on line up human resources
with the strategic objectives of the organization, emphasizing the role of
employees as valuable assets. Personnel Management, on the other hand, tends
to focus on administrative tasks and maintaining employee relations, taking a
more reactive approach.
2. Human Resource Management (HRM) emphasizes the development and
implementation of HR policies and practices that support organizational goals
and values. Personnel Management is more worried with ensuring compliance
with labour laws and principles.
3. HRM fosters a more strategic and pre-emptive approach to managing people,
assimilating HR practices with business goals and objectives. Personnel
Management tends to be more transactional and responsive, focusing on day-
to-day administrative tasks.
4. HRM places greater emphasis on employee development, engagement, and
retention, recognizing the importance of creating a positive work environment.
Personnel Management focuses more on managing employee relations,
resolving conflicts, and addressing issues as they arise.
5. Human Resource Management (HRM) is seen as a broader and more
comprehensive approach to managing people, encompassing various HR

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 functions and activities. PM is often seen as a narrower, more traditional
approach, focusing primarily on personnel administration.

In summary, while both HRM and PM involve managing people within an organization,
HRM takes a more strategic, proactive, and holistic approach, aligning HR practices with
organizational objectives, while PM leans towards a more administrative, reactive, and
traditional focus on 0upholding employee relations and compliance.

2. Describe the Processes in Human Resource Management

HRM is a comprehensive approach to managing employees within an organization that

includes various processes to ensure organizational objectives are met. The key
processes in human resource management include:

1. Recruitment and Selection: This process involves attracting, sourcing, screening,

and selecting qualified candidates for job vacancies within the organization. It
includes activities such as creating job descriptions, posting job advertisements,
conducting interviews, and making job offers.
2. Training and Development: This process focuses on enhancing employees’
knowledge, skills, and abilities to improve performance and productivity. It
includes activities such as conducting training programs, workshops, seminars,
and providing opportunities for professional development.
3. Performance Management: This process involves setting performance goals,
evaluating employee performance, providing feedback, and facilitating
performance improvement. It includes activities such as performance appraisals,
goal-setting, and performance feedback sessions.
4. Compensation and Benefits: This process involves designing and implementing
competitive salary structures, benefits packages, incentives, and rewards to attract
and retain top talent. It includes activities such as designing compensation plans,
administering benefits programs, and managing employee rewards systems.
5. Employee Relations: This process focuses on maintaining positive relationships
between employees and management, as well as resolving conflicts and addressing
employee issues. It includes activities such as communication, employee engagement
initiatives, and conflict resolution.
6. Compliance and Legal Issues: This process involves ensuring that HR

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 practices comply with labour laws, regulations, and organizational policies. It
includes activities such as managing legal documentation, handling grievances,
and addressing compliance concerns.
7. HR Planning: This process involves forecasting future workforce needs and
developing strategies to meet organizational goals. It includes activities such as
workforce planning, succession planning, and talent management.

Overall, the processes in human resource management are crucial for managing employees
effectively, ensuring organizational success, and creating a positive and productive work
environment. By implementing these processes, organizations can attract, retain, and
develop talent, improve performance, and achieve their strategic objectives.

3. Do you think that HRM in public sector is similar with that of private sector? Discuss.

Human resource management (HRM) practices in the public sector and private sector
share similarities, but there are also significant differences due to the distinct nature and
objectives of each sector.
 Similarities:
1. Recruitment and Selection: Both public and private sector organizations need to
attract and select qualified candidates for their workforce. They use similar practices
such as job postings, interviews, and assessments to identify the best candidates.
2. Training and Development: Both sectors invest in training and development
programs to enhance the skills and competency of their employees. This helps in
improving performance, increasing productivity, and fostering career growth.
3. Performance Management: Both sectors utilize performance management
systems to monitor and evaluate employee performance. This includes
setting goals, providing feedback, and assessing performance through
appraisals.
 Differences:
1. Objectives: The primary objectives of public sector HRM often focus on providing
services to the community, following government regulations, and promoting
accountability and transparency. In contrast, the private sector aims to generate
profits, promote growth, and achieve competitive advantage.
2. Regulations and Policies: The public sector is subject to a higher level of

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 regulations, policies, and restrictions compared to the private sector. This includes
government rules on hiring practices, compensation structures, and employee rights.
3. Accountability: Public sector organizations are accountable to the government,
stakeholders, and citizens for their actions and decisions. This can influence HRM
practices such as performance evaluation, budget allocation, and decision-making
processes.
4. Funding and Resources: Public sector organizations often have limited financial
resources and budget constraints compared to private sector companies. This can
impact HRM practices such as training budgets, staffing levels, and compensation
packages.

In conclusion, while there are similarities between HRM practices in the public and
private sector, the differences in objectives, regulations, accountability, and resources
lead to distinct approaches and challenges for each sector. Organizations in both sectors
need to tailor their HRM strategies to meet their specific goals, requirements, and legal
obligations.

4. Discuss the killers of organizational culture and their fixing mechanisms.

There are several factors that can kill organizational culture and negatively impact employee
morale and performance. Some of the common killers of organizational culture include:

1. Lack of communication: Poor communication within an organization can lead to

misunderstandings, conflicts, and a lack of trust among employees. This can impact
collaboration, decision-making, and overall employee engagement.
Fixing mechanism: Implement regular communication channels such as team
meetings, newsletters, and feedback sessions to ensure that information is shared
transparently and openly within the organization.
2. Micromanagement: Micromanaging employees can stifle creativity, autonomy, and
innovation. It can lead to disengagement, low morale, and high turnover rates.
Fixing mechanism: Provide employees with clear goals and objectives, and trust
them to do their work effectively. Encourage autonomy and empower
employees to make decisions within their roles.
3. Lack of recognition and appreciation: Failing to acknowledge and
appreciate employees’ contributions can lead to disengagement and

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 demotivation. It can result in a lack of commitment and loyalty towards the
organization.
Fixing mechanism: Implement a recognition and rewards program that celebrates
employees’ achievements and efforts. Provide regular feedback and praise to
employees for their hard work and dedication.
4. Toxic leadership: Leaders who are controlling, manipulative, or abusive can create a
negative work environment and undermine trust and morale within the organization.
Fixing mechanism: Provide leadership training and coaching to help leaders
develop effective communication, interpersonal, and emotional intelligence skills.
Encourage leaders to lead by example and foster a positive and inclusive work
culture.
5. Lack of work-life balance: Overworking employees and not promoting a healthy
work-life balance can lead to burnout, stress, and low productivity.
Fixing mechanism: Implement flexible work arrangements, wellness
programs, and policies that support work-life balance. Encourage employees
to take breaks, prioritize self-care, and maintain a healthy work-life balance.

Overall, addressing these organizational culture killers requires proactive leadership,

effective communication, and a commitment to fostering a positive and inclusive work
environment. By identifying and addressing these challenges, organizations can rebuild and
strengthen their culture, leading to improved employee satisfaction, engagement, and
performance.

5. Explain the elements of job analysis and design.

Job analysis and design are important processes in human resource management that help
organizations understand the requirements of a job and create effective work structures. The
elements of job analysis and design include:

1. Job analysis:
 Job analysis involves gathering information about a specific job, including the
tasks, responsibilities, and qualifications required for the role.
 The process involves collecting data through various methods such as interviews,
questionnaires, and observation.
 The information gathered during job analysis is used to create job descriptions,

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 job specifications, and performance standards.
2. Job design:
 Job design involves structuring and organizing a job to ensure that it is effective
and efficient.
 This includes determining the tasks, responsibilities, and duties of a job, as well as
the skills and qualifications required.
 Job design also involves creating a job structure that promotes employee
satisfaction, performance, and motivation.
 Job design can also include job enrichment, job rotation, and job enlargement to
enhance employee engagement and performance.

Overall, job analysis and design are essential processes in human resource management that
help organizations create effective job structures, understand job requirements, and ensure
employee satisfaction and performance. By analysing and designing jobs effectively,
organizations can achieve their goals and objectives more efficiently.

6. Discuss the Methods of Training that Micro link College should use in order to
accomplish its vision.

To accomplish its vision, micro link College can implement a variety of training
methods to ensure that its staff, faculty, and students are well-equipped with the
necessary knowledge and skills. Some training methods that Micro link College can use
include:

1. Instructor-led training: This traditional method involves a trainer or instructor

leading a training session in a classroom setting. It allows for direct interaction
between the trainer and trainees, facilitating discussions and providing immediate
feedback.
2. Online training: Micro link College can use online platforms to deliver training
programs to its staff and students. Online training can be asynchronous or
synchronous, allowing individuals to learn at their own pace or participate in real-
time.
3. Hands-on training: Practical training sessions that involve hands-on activities can
be beneficial for teaching technical skills. For example, workshops, simulations, and
laboratory sessions can help students and staff gain practical experience.

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 4. Peer learning: Micro Link College can leverage peer learning as a training method
where employees or students learn from each other. This can be done through group
projects, group discussions, mentoring, or coaching.
5. On-the-job training: This method involves learning while performing tasks on the
job. Micro link College can provide opportunities for staff and students to learn new
skills through practical experiences and observation of experienced professionals.
6. Workshops and seminars: Hosting workshops and seminars on relevant topics can
provide valuable learning opportunities for staff and students. These sessions can be
led by industry experts, professors, or professionals in the field.
7. Role-playing exercises: Role-playing exercises can be used to simulate real-
life scenarios and teach interpersonal and communication skills. It can help
individuals practice handling difficult situations and improve their problem-
solving abilities.

By utilizing a mix of training methods, Micro Link College can effectively develop the
knowledge, skills, and competencies of its staff and students, enabling them to contribute
towards achieving the institution’s vision. Each method can be tailored to the specific needs
and learning preferences of individuals to maximize learning outcomes.

7. Explain the modern performance appraisal methods that should be used in business
organizations.

Modern performance appraisal methods focus on continuous feedback, goal-setting,

development, and alignment with business objectives. Some of the performance appraisal
methods that should be used in business organizations include:

1. 360-degree feedback: This method involves collecting feedback from multiple

sources, such as supervisors, peers, subordinates, and customers, to provide a holistic
view of an employee’s performance. This feedback can help employees identify their
strengths and areas for improvement.
2. Continuous feedback: Instead of annual or bi-annual reviews, organizations are
moving towards providing continuous feedback to employees. This involves
providing feedback in real-time or on a regular basis to help employees stay on track
and make improvements as needed.
3. Goal-setting and performance management: Setting SMART (Specific,

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 Measurable, Achievable, Relevant, Time-bound) goals is an essential part of
performance appraisal. Employees and managers should work together to set clear
and measurable goals that align with the organization’s objectives.
4. Self-assessment: Allowing employees to evaluate their own performance can provide
valuable insights and perspectives. Self-assessment can help employees take
ownership of their development and performance improvement.
5. Skill-based assessments: Assessing employees based on specific skills and
competencies required for their roles can provide a more accurate reflection of their
performance. Skill-based assessments can help identify areas for training and
development.
6. Behavioral assessment: This method focuses on evaluating employee behaviors and
traits that contribute to their performance. Behavioral assessment can provide insights
into an employee’s communication skills, teamwork, leadership, and problem-solving
abilities.
7. Performance metrics and key performance indicators (KPIs): Using quantitative
measures, such as KPIs and performance metrics, can help track and evaluate
employee performance objectively. These metrics can be tied to organizational goals
and objectives to ensure alignment with business priorities.

Overall, modern performance appraisal methods focus on providing continuous feedback,

setting clear goals, assessing skills and behaviors, and aligning individual performance with
organizational objectives. By using a combination of these methods, business organizations
can effectively evaluate and improve employee performance to drive organizational success.

8. Take one organization and design a compensation system.

BGI Ethiopia is a non-profit organization that works to address various social and
environmental challenges in Ethiopia. In order to attract and retain top talent, it is important
to design a competitive compensation system that rewards employees for their hard work and
dedication.

The compensation system for BGI Ethiopia should be structured in a way that aligns with the
organization's mission and values, while also being fair and transparent. Here are some key
components that should be considered when designing a compensation system for BGI
Ethiopia:

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 1. Base Salary: Employees should receive a competitive base salary that reflects their
skills, experience, and contributions to the organization. Salaries should be
determined based on market rates, job responsibilities, and performance evaluations.
2. Performance-based Incentives: Incentive programs can be used to reward
employees for achieving specific goals and objectives. These incentives can be tied to
individual performance, team performance, or organizational performance. This can
help motivate employees to perform at their best and achieve the organization's goals.
3. Benefits Package: In addition to base salary and performance incentives, BGI
Ethiopia should also offer a competitive benefits package to its employees. This may
include health insurance, retirement plans, paid time off, and professional
development opportunities.
4. Career Development: BGI Ethiopia should invest in the career development of its
employees by offering training and development programs, mentorship opportunities,
and career advancement opportunities. This can help employees grow and evolve
within the organization.
5. Employee Recognition: It is important to recognize and reward employees for their
hard work and contributions to the organization. This can be done through
performance-based bonuses, awards, and public recognition.

Overall, the compensation system for BGI Ethiopia should be designed to attract and retain
top talent, motivate employees to perform at their best, and align with the organization's
mission and values. By offering competitive salaries, performance incentives, benefits
packages, career development opportunities, and employee recognition programs, BGI
Ethiopia can create a positive and supportive work environment for its employees.

9. Highlight the future Challenges of human resource management.

Future challenges in human resource management include:

1. Embracing technology: As technology continues to advance, HR professionals will

need to adapt to new tools and technologies to streamline HR processes, improve
decision-making, and enhance employee experiences.
2. Managing a diverse workforce: With globalization and increasing diversity in
the workplace, HR needs to focus on creating inclusive work environments,
managing cross-cultural teams, and addressing diversity and inclusion issues.

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 3. Talent management: As the war for talent intensifies, HR will need to focus on
attracting, developing, and retaining top talent. This includes implementing
effective recruitment strategies, offering competitive compensation and benefits,
and providing opportunities for career growth and development.
4. Remote work and flexible work arrangements: The rise of remote work and
flexible work arrangements post-pandemic has presented challenges for HR in
terms of managing remote employees, ensuring team collaboration and
communication, and maintaining employee engagement.
5. Health and wellbeing: HR will need to focus on employee health and wellbeing,
especially in light of the COVID-19 pandemic. This includes promoting mental
health initiatives, offering wellness programs, and ensuring a safe and healthy work
environment.
6. Automation and AI: The increasing use of automation and artificial intelligence in
the workplace will require HR professionals to reskill and upskill their workforce,
redesign job roles, and address concerns around job displacement.
7. Data analytics and HR metrics: HR will need to enhance its capabilities in data
analytics and HR metrics to make data-driven decisions, measure the impact of HR
initiatives, and improve overall organizational performance.
8. Compliance and regulations: HR professionals will need to stay updated on
changing labor laws, regulations, and compliance requirements to ensure that
policies and practices are aligned with legal standards.

Overall, the future challenges of human resource management require HR professionals to

be agile, innovative, and strategic in their approach to managing and developing talent in
today’s dynamic and ever-evolving work environment.

10. Explain the main problems involved in performance appraisal

Performance appraisal can be a complex and challenging process for both employees and
managers. Some of the main problems involved in performance appraisal include:

1. Subjectivity: One of the primary challenges of performance appraisal is the

subjective nature of evaluations. Managers may have biases or personal prejudices
that can influence their assessments of employees, leading to unfair or inaccurate
ratings.

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 2. Lack of feedback: In some cases, employees may not receive timely or constructive
feedback on their performance, which can hinder their development and motivation.
Without clear communication about expectations and areas for improvement,
employees may feel lost or demotivated.
3. Reliability and validity: The reliability and validity of performance appraisal
methods can be an issue. Evaluations may not accurately measure employees’
actual performance or may lack consistency across raters or time periods.
4. Halo and Horns Effect: The halo effect occurs when a manager’s overall
positive impression of an employee influences how they rate specific aspects of
their performance, leading to inflated appraisals. Conversely, the horns effect
occurs when a manager’s negative impression of an employee influences their
rating, resulting in unfairly low scores.
5. Lack of employee involvement: Employees may feel disengaged or resentful
if they are not included in the performance appraisal process. Lack of input
from employees can result in evaluations that do not accurately reflect their
perspective or contributions.

Addressing these problems requires organizations to implement fair, transparent, and

consistent performance appraisal processes. This may involve training managers on bias
awareness, providing regular and specific feedback to employees, using multiple sources of
feedback, and involving employees in goal-setting and evaluation discussions. Regular
monitoring and review of the performance appraisal system can help identify and address
any issues that arise.

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