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AIM Organisational Development Programme

Workshop 3: Human Resource Management
2004

Trainer’s Guide

AIDS/HIV Integrated Model (AIM) District Programme First Floor, Nakawa House Plot 3-7 Old Port Bell Road PO Box 12009 Kampala, Uganda Tel: (041) 222-011 Tel: (+256) 031 260657/8, (041) 222011/19/20/21 Fax: (+256) 041 222035 info@aimuganda.org; www.jsi.com/aim

Acknowledgements
The AIM Programme wishes to acknowledge the following people and organisations for their support in developing this training. Milton Bakeebwa and Apollo Musinguzi of Development Initiative Consult Ltd. developed the materials for this manual. Some sessions were adapted from a workshop on Performance Management Systems developed for World Education’s Ntinga Microenterprise Support Project in South Africa. This publication was funded by the U.S. Agency for International Development (USAID) and the Centers for Disease Control and Prevention (CDC) through the AIDS/HIV Integrated Model District Programme (AIM), contract no. 617-A-00-01-00004. The views expressed are those of the authors and do not necessarily represent the views of USAID and CDC. AIM is a project of JSI Research & Training Institute, Inc., with partners World Education and World Learning.

AIM Organisational Development Programme

Human Resource Management

Human Resource Management Trainer’s Guide Table of Contents
1 2 3 4 5 6 7 8 9 10 11 Introduction ......................................................................................................................................... 5 Overview of Human Resource Management................................................................................. 8 Human Resource Policy ................................................................................................................... 12 Strategic Context of HR Planning .................................................................................................. 19 Job Descriptions................................................................................................................................ 26 Recruitment........................................................................................................................................ 29 Induction ............................................................................................................................................ 30 Human Resource Development: Training ................................................................................... 31 Performance Management ............................................................................................................... 35 Compensation ................................................................................................................................ 48 Action Plans ................................................................................................................................... 52

Evaluation and Close................................................................................................................................ 54

AIM Organisational Development Programme

Human Resource Management

Schedule of Activities
TIME DAY ONE 8.30 – 9.30 9:30 – 11:00 11:00 – 11:30 11:30 – 1:00 1:00 – 2:00 2:00 – 2:30 2:30 – 3:30 3:30 – 4:00 4:00 – 5:00 5:00 – 5:15 LENGTH 1 hr 1 hr 30 min 30 min 1 hr 30 min 1 hr 30 min 1 hr 30 min 1 hr 15 min TOPIC 1. Welcome and Introduction 2. Overview of Human Resource Management Tea Break 3. Human Resource Policy Lunch HR Policy Cont’d 4. Strategic Context of HR Planning Tea Break Strategic Context cont’d Evaluate the Day

TIME DAY TWO 8.30 – 8:45 8:45 – 10:15 10:15 – 11:15 11:15 – 11:45 11:45 – 12:45 12:45 – 1:45 1:45 – 3:45 3:45 – 4:15 4:15 – 5:15 5:15 – 5:30

LENGTH 15 min 1 hr 30 min 1 hr 30 min 1 hr 1 hr 2 hrs 30 min 1 hr 15 min

TOPIC Recap Previous Day 5. Job Descriptions 6. Recruitment Tea Break 7. Induction Lunch 8. Training Tea Break 9. Performance Management Evaluate the Day

TIME DAY THREE 8.30 – 8:45 8:45 – 9:45 9:45 – 10:15 10:15 – 11:15 11:15 – 11:45 11:45 – 12:15

LENGTH 15 min 1 hr 30 min 1 hr 30 min 30 min

TOPIC Recap Previous Day Performance Management cont’d Tea Break 10. Compensation 11. Action Plans Evaluation and Close

Trainer’s Guide

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AIM Organisational Development Programme

Human Resource Management

1 Introduction
Time: Resources: Methods: Objectives: 1 hour Flip Chart, Markers, Nametags, Zop Cards, Pre-Training Self-Assessment Paired Introductions, Plenary Presentation and Discussion By the end of the session, participants will be able to: Interact freely with one another List the objectives of the workshop

Activity details: Welcome the participants to the workshop. Introduce any visitors or observers and explain why they are attending. Remind participants that this workshop is the third in a series of six. The workshops were developed in response to a comprehensive Joint Institutional Assessment process of these 10 participating NGOs. The six crosscutting issues that were selected for workshops are: • • • • • • Strategic Management Monitoring & Evaluation Human Resource Management Financial Management Resource Acquisition District Operations

Introductions: Begin by telling participants that an important element of learning in this training course will be learning from each other. Participant contributions are actively encouraged. Participants are encouraged to share ideas and information from their own experiences, ask questions, and discuss issues that arise in further detail. Informal discussions may continue during meal times, in your small groups, possibly late into the evening! Before further exploring our workshop topics, then, encourage participants to get to know each other a little better. Introduction Activity: Ask participants to identify and pair up with any other participant who they do not know. Ask participants to discuss with each other about their designations, their names, likes and dislikes. In addition, each participant should ask the other any creative question about their social backgrounds. Participants are then asked to write each other details on a flash card and introduce each other.

Trainer’s Guide

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Ask one participant to read out all participants expectations as the facilitator writes them on a flip chart. In addition. The team of volunteers will lead the recap at the beginning of the day. As you go through the objectives. Post the goals on a flip chart on the wall for the duration of the training. so that he or she can focus the workshop accordingly. so that participants can travel home. They ask for feedback on the workshop’s methods and content. • Discuss the process of writing HR policies • Identify and explain the Human Resource Planning Process. lead ice breakers after lunch. In this way. the volunteers not only provide logistical assistance to the facilitator. Go over the day’s schedule. Trainer’s Guide 6 . compare them to the expectations of participants and point out which ones will be met. The facilitator then reads through each expectation and briefly comments on whether it will be met or not.AIM Organisational Development Programme Expectations: Human Resource Management Ask participants to write at least two expectations on a flash card.) Remind participants that there will again be a series of Consultancy Clinics held after the workshop. Make announcements about logistical issues such as meals and out of pocket expenses. • Describe the training and Development cycle. (Note: For the last day of the training. By the end of the workshop participants are expected to: • Identify the role and importance of managing human resources in their organisations. A sign-up sheet is next to the door. the volunteer team attends a Steering Committee meeting at the end of the day. Request participants to sign up as classroom volunteers on the sign-up sheet posted at the back of the room. They will fill it in at the beginning of the workshop. Objectives: Introduce the goals and objectives of the workshop. but also give participants a voice in the management of the workshop. and again at the end to see where they have learned new skills. Logistics: Introduce the idea of the Classroom Volunteers and the Steering Committee as explained below: To help the facilitator with logistics and classroom management. from their fellow participants and share it with the workshop organizers. it may be preferable not to hold a Steering Committee meeting. as well as logistical issues such as meals and lodging. to give feedback to the facilitator and workshop organizers. and help keep time during breaks. participants will take turns serving as volunteers for the day. or hold it during lunch. The Pre-Training Self-Assessment also gives the trainer a measure of how much experience participants have with the workshop topics. review the past day’s activities and evaluation in the morning. and which may not. Tell participants that this assessment gives them a chance to reflect on their own learning. Distribute the Pre-Training Self-Assessments.

AIM Organisational Development Programme Human Resource Management Finally. Trainer’s Guide 7 . Emphasise that this assessment is not a test of the individual’s ability. AIM will not share them with the participant’s organisation. the Post-Training Assessment gives the trainer and course organisers a sense of how successfully the learning objectives have been met in the group. to save time. Note: Participants may be requested to fill out the Assessment as they are entering the training room in the morning. No one except for the trainer and the AIM representative will see the self-assessments.

Concern for people • • • • It is a fact that competitive advantage is achieved through people People make the difference Concern for people means attracting. ? What is Human Resource Management? Human Resource Management is a strategic and coherent approach to the management of an organisation’s most valued asset – the people working there who individually and collectively contribute to the achievement of its goals. mutual respect. developing and motivating the right employees and helping them to develop an appropriate culture and climate. Masking Tape. Lecture/Presentation By the end of the session the participants should be able to: Identify the role and importance of managing human resources in the organisation Align human resource strategy with organisational strategy Explain the relationship between line management and the human resource function Procedure: “You can get capital and erect buildings. procedural fairness and transparency Trainer’s Guide 8 . Question and Answer. Group Discussion. Markers/Chalk. Handout Brain Storming. but it takes people to build a business” Ask participants to give their understanding of this quotation.AIM Organisational Development Programme Human Resource Management 2 Overview of Human Resource Management Time: Resources: Methods: Objectives: 1 hour 30 minutes Flip Chart/Board. ? What are the concerns of HRM (that is people and performance)? 1. respect for the individual. retaining. Concern for people implies an ethical approach to their management that is.

developing an organisation which caters for all the activities required.AIM Organisational Development Programme 2. They should discuss and outline on the flip charts the role and importance of human resource management in an NGO. Characteristics of HRM • • • • • Strategic integration of business and HR strategies Coherence.their duties and responsibilities and the relationships that exist between job holders and other people in the organisation Organisational development. Connect responses to the following lecture. planning and implementing programmes designed to improve the effectiveness with which the organisation functions and adapts to change.the need to adopt a coherent approach to the provision of mutually supporting and integrated HR policies and practices Commitment – the need to gain the commitment of the people to the organisation’s missions and values Treating people as assets or human capital – to be invested in through training and development Corporate culture. Group Work Ask participants to work in small groups. training and performance management. Key HRM activities The key activities of HRM carried out by both line managers and HR practitioners are: Organisation • • • Organisation structuring . The employment relationship • • • • Improving the quality of the employment relationship Creating a climate of trust and self propulsion Developing a more positive psychological contract Achieving a highly committed organisation Trainer’s Guide 9 . 3. ask them to briefly present their answers.stimulating.deciding on the contents of the jobs. Concern for performance • • Human Resource Management HRM is concerned about the contribution individuals and teams make to improving organisational performance This means ensuring that the right skills are available and developed. groups them together in a way which encourages integration and co-operation Job design and role specification .the need for a strong corporate culture expressed in mission and value statements and reinforced by communication. When the groups are finished. They will have 15 minutes to work.

Employee benefits. teams and individuals by measuring and managing performance within agreed frameworks of objectives and competence requirements. recognition.providing welfare services and helping with personal problems.managing and maintaining formal and informal relationships with trade unions and their members Employee involvement and participation – sharing information with employee and consulting them on matters of mutual interest Communication.creating and transmitting information of interest to employees. safety and employee services • • Health and safety – developing and administering health and safety programme Employee services.AIM Organisational Development Programme Resourcing • • Human Resource Management Human resource planning. development etc Recruitment and selection.g. assessing and improving performance Human resource development • • • Organisational and individual learning Skill improvement through systematic approach to training Heard of institutional memory? What is its use in organisational development? Relate this to the culture of information management. digital growth and information technology solutions.providing employees with non-financial rewards e. Health. Does the organisation have a management information system? How do you create one? Reward management • • • • Job evaluation.providing benefits in addition to pay which cater for personnel security and personal needs Employee relations • • • Employee relations.assessing future people requirements in terms of both numbers and all levels of skill and competence.obtaining the number and type of people the organisation needs Performance management Getting better results from the organisation. Trainer’s Guide 10 . increased responsibility and opportunity to achieve and grow. Formulating and implementing plans to meet those requirements through recruitment. training.assessing the relative size of jobs as a basis of determining internal relativities Pay – developing and administering pay structures and systems Non-financial rewards.

The challenges include: • • • • • Globalisation. Trainer’s Guide 11 . products and information around the world to meet local needs. productive part of the work setting Business growth Intellectual capital Change and ability to cope with change. New and important ingredients must be added to the mix when making strategy. Technology – challenge is to make technology a viable. which means that HR has to be involved in helping to build new capabilities.AIM Organisational Development Programme Challenges to HRM Human Resource Management Environmental and contextual changes present a number of competitive challenges to organisations.requires organisations to move people’s ideas.

Circulate among the pairs and help them decide what to consider when writing these policies. The personnel policy should be detailed in an employee handbook available to all staff. Components: Each organisation will have different policies depending on its particular situation. Flip Charts.AIM Organisational Development Programme Human Resource Management 3 Human Resource Policy Time: Methods: Resources: Objectives: 1 hour 30 minutes Group Discussion. Having a consistent policy applied fairly and transparently to all employees helps in resolving disputes. Question and Answer. Emphasise that the policy must be fully developed and finalised in consultation with the senior management and perhaps other staff of the organisation. Give them 30 minutes to begin drafting policies on these topics. participants will be able to: Define the terms policy and human resources policy Explain the components of human resources policy Identify the importance of human resources policy in the organisation Procedures: Ask participants: ? What is a Personnel Policy? What are its components? Why is it important to adopt a policy? Every organisation should adopt consistent policies that will guide the management of personnel issues. Trainer’s Guide 12 . This list is intended as a resource for participants when they are developing policies. Group Work: Ask participants to work with a colleague from their NGO and go through the list and mark those areas for which their organisation does NOT have a policy. Presentation Handout. Group work At the end of the session. Go through the major categories in this list and answer participants’ questions. Experience Sharing. it is not necessary to discuss every section. Below are listed some common topics that can be addressed in a Personnel Policy.

Recruitment and Employee Selection This section should outline the procedures for recruiting employees.V.Process for reference checks. This should be governed by Ugandan law. Posting of the Job Announcement – policies for when and how long a job opening should be posted internally and externally. Having a system in place helps ensure a fair process that is the same for all applicants. including: • • Mission and Vision Statements Statement of the organisation’s legal status as an NGO B. It is also suggested that employees notify the NGO’s management if they have a family relationship to a person under consideration for employment.AIM Organisational Development Programme Human Resource Management Common Components of a Personnel Policy Handbook A. 1. Trainer’s Guide 13 . These might include the definition of: • • • • “employee” “regular” versus “temporary” employees “full-time” versus “part-time” employees any other terms that might be unclear C. Definitions Next. Recruitment Job Descriptions – up-to-date descriptions for each post. and references). the policy should explain the meaning of the terms that will be used. Application Documents – List what documents will be required from all applicants (such as a C. especially in regard to employment status. number of references to be required. 2. not only the supervisory staff. Employee Selection Process Screening of Applications – Specify general criteria for screening. some organisations forbid the hiring of a person for a position in which he/she would be directly supervised by a relative. References . Interviews – Who will typically conduct interviews? It is suggested that all staff who will work closely with the new hire be involved in interviewing. some organisations post jobs internally for one week before making the job announcement publicly. Employment of Relatives . For example.To avoid conflicts of interest. Rejected Applicants – Process for notifying rejected applicants. Organisational Description Introduce the organisation and its legal status.

Bonus – Specify policy for payment of yearly bonuses. Attendance policies – consequences for late arrival and absence F. if any. Initial Probation – Length and terms of probationary period for new employees. Work Schedule and Hours This section should outline working hours and procedures related to accounting for time.AIM Organisational Development Programme D. • • Decision to Hire/Promote – State the general criteria for deciding when to hire for a new position. • • • • Salary Scale – Some organisations develop base pay ranges for each position. It is helpful to develop a template for the Letter of Hire that includes all the necessary clauses so that nothing is left out by mistake. Unsatisfactory performance during the probationary period may result in termination of employment. CV. newly hired employees are on probation for the first 3 to 6 months. Holidays – List the official holidays observed by the organisation. • • • • Regular Work Schedule – specify the hours of the day and days of the week for regular workdays. In many organisations. such as filling out time sheets. • • E. Letter of Hire / Employment Contract – State what provisions should be included in the letter of hire. At the end of this period. and a copy of the person’s passport or national ID card. Form of Payment . Hiring and Replacement Human Resource Management In this section. will be notified that the probation period has ended. Annual Increase – Specify when and on what criteria increases will be granted. or to replace an outgoing employee in an existing position. Salary and Compensation In this section. explain the process for hiring new employees once they have been selected. Documentation – List documents that will be maintained in the employee’s file. contact information for next of kin. and if satisfactory. Timesheets – Procedures for filling them out.Frequency and time of the month payments are made. state the policies for establishing and paying salaries. Trainer’s Guide 14 . such as letter of engagement. the employee should undergo a review with his/her supervisor to assess performance.

Summary Dismissal – Define the conditions under which an employee can be dismissed without warning and without severance. outline the minimum advance notice the employee will receive from the NGO. H. and how they will be documented. Probationary Dismissal – Conditions for dismissing an employee during the initial probation period. Outstanding Advances – Policy for clearing any outstanding advances in pay that the employee may have received. This action should be reserved for serious infractions such as drug use and theft. if applicable. it is helpful to have a fair process in place by which decisions about termination are made. Performance Appraisal and Grievances • • • Human Resource Management Timing of Performance Appraisals – Explain when and how frequently appraisals will take place. • • • Voluntary Termination – State the minimum advance notice required from the employee before the effective date of resignation. Grievances – State the process and designated personnel to whom complaints should be directed.AIM Organisational Development Programme G. • • 3. 2. Absence or Abandonment of Service – disciplinary action for unauthorised absence or failure to return to post for a given period of time. Termination of Employment – For each type of termination below. failure to fulfil one’s job description. Severance – State the amount of severance payment available to employees based on their length of service. or poor co-operation with colleagues). Warning System and Termination of Employment It is particularly important to have a clearly stated policy for the difficult process of employment termination. such as payment for vacation accrued and severance. This should be based on Ugandan law. and what salary and benefits the employee will be entitled to receive. Warning System Describe the procedure for giving progressive official warnings to an employee. Trainer’s Guide 15 . 1. Promotions – State the criteria for promotion. the NGO has the right to let the employee go. Outline what types of behaviour by an employee can lead to a warning (such as negligence. Reduction in Force – Some organisations put a statement in the employee’s letter of hire explaining that in situations where the employee’s position is no longer needed or funds are no longer available. If an employee is unhappy with the decision. and conditions under which severance is and is not available. 4. the maximum amount available.

if any. Paternity Leave – Length of leave and any other conditions. including policies for temporary and part-time employees. conditions for holding the position open during leave. and under what conditions. how vacation is accrued. if any. Employee Benefits Human Resource Management Every NGO will not necessarily offer all of the following benefits. 1. state what is available to full versus part-time employees? For part-time employees. provide information on: • Maximum benefits • Coverage of dependants/family (specifying which family members are eligible) • Types of medical costs covered • Documentation required • Reimbursement process • Costs for which employees are responsible 2. documentation required. specify the percent time an employee must work in order to receive each benefit. Medical Benefits • Health Insurance– If employees receive health insurance. • • • • • Vacation – Number of days. procedures for requesting leave. the Personnel Policy should provide a clear explanation of who is entitled to what benefits. Paid Leave – State who is eligible for each type of leave that your organisation offers. notification of the organisation. provide information on: • the proportion of premiums to be paid by employees themselves • contact information for the insurance carrier • forms and procedures for making claims • deductibles and maximum benefits • types of medical costs covered • coverage of dependants/family (specifying which family members are eligible) • a copy of the insurance plan • Reimbursement of Medical Costs .If employees receive reimbursement of medical costs rather than insurance coverage. procedure for notifying the organisation of sickness. Maternity Leave – Length of leave. rules for carrying days over from one year to the next. rules for carrying days over. Sick Leave – Number of days and how accrued. For each benefit. For those benefits that you do offer.AIM Organisational Development Programme I. payment during leave. consequences if employee does not return. Bereavement Leave –length of leaves and conditions for taking it. Trainer’s Guide 16 .

laptops and mobile phones) . Desktop Computers Portable Equipment (e. If there are procedures for making and logging business calls. while others do if the employee reimburses the project. Consumable office supplies – State the rules for use of office supplies such as paper and envelopes for personal purposes. Office Resources This section should provide the rules for the use (both personal and official) of the following resources: • • Office Premises – Rules for after-hours use and visitors. Travel • • Travel Advances – Including the procedures for taking out and reconciling a travel advance.AIM Organisational Development Programme Human Resource Management 3.g. Per Diem/ Out of pocket and Accommodation – List the rates to be paid for different circumstances. they should also be included. Telephones – Explain rules for making personal phone calls (local. long-distance or overseas) and reimbursing the project. Photocopies – Some offices do not allow photocopying for personal purposes. Make these rules clear. • • • • • Trainer’s Guide 17 . Vehicles– Regulations for official use and documentation. Additional Benefits – Describe any other benefits provided. and the circumstances under which an advance is allowed. K. such as: • Savings/Pension Plan • Staff Development • Children’s education allowance • Leave Travel assistance • Uniforms J. Responsibility for damage or loss.Regulations for checking out and checking in this equipment.

• receiving commissions from vendors or contractors. 3. spell out the guidelines for appropriate behaviour in the workplace. • keeping for personal gain any discount given by a vendor or service provider to the NGO. 4. • giving preference in hiring or procurement of goods to a relative. . favours or money from anyone who may benefit by their relationship to an employee. This includes: • granting favours to vendors or contractors for goods and services to the NGO.Employees should not make financial gain as a 1. • accepting gifts.AIM Organisational Development Programme L. if any. Dress – Outline the office dress code. Trainer’s Guide 18 . etc. Discrimination – Some organisations develop policies to prohibit discrimination on the basis of religion. General Expectations for Workplace Behaviour Human Resource Management In this section. sex. Sexual Harassment – Some organisations develop policies and guidelines to prevent sexual harassment. in hiring and other activities. 5. • Operating a personal business from the office premises. Policy Against Personal Financial Gain result of being an employee of the NGO. ethnicity.

but it will be at least six months before any new funds are obtained. With everyone playing so many roles. Ask the groups to answer the following questions: ? Is this situation common in Uganda? What can this NGO do to improve its human resource situation given its limited funds? Relate responses to the following lecture & discussion on Human Resource Planning. Demonstration At the end of the session. The executive director sometimes does the monthly bookkeeping. and the one of the Project Coordinators doubles as a Monitoring & Evaluation Officer. Markers Discussion.AIM Organisational Development Programme Human Resource Management 4 Strategic Context of HR Planning Time: Resources: Methods: Objectives: 2 hours Flip Charts. Ask participants to work in groups for 20 minutes. The NGO would like to hire more staff to ease the burden.internally (existing employees) and externally (those to be hired or searched for) .with job openings the organisations expects to have over a given time frame. The organisation has a portfolio of several programs. Trainer’s Guide 19 . sometimes an important task is forgotten or left incomplete. participants will be able to: Explain precisely the contents of the human resources policy Demonstrate the key elements of the human resources policy Acknowledge to participants that many NGOs simply lack the resources to fill the gaps in staffing that they have identified through human resource planning. Question and Answer. Ask participants: ? What is human resource planning? Why is it necessary to conduct HR planning? How can it be related to strategic management or overall organisational objectives? Human Resource Planning (HRP) previously refereed to as manpower planning. but only five staff to manage them all. Human resource planning is the system of matching the supply of people. Give them the following scenario to read: A young and growing NGO is struggling to implement its programs with a small staff. is the process of getting the right number of qualified people into the right job at the right time. The following exercise is intended to help them think about creative solutions for this common problem.

• • • • Trainer’s Guide 20 . are available to do forecasting Do an analysis of the organisation’s current human resources: doing a skills inventory will shed light on the number of current employees in terms of their different competencies. Line managers. Human resource practitioners serve as consultants to line managers concerning the people management implications of business objectives and strategies. It is therefore a macro approach to planning for human resources. namely achieving objectives. skills. Strategically . in that it provides the means to accomplish the desired outcomes.AIM Organisational Development Programme Human Resource Management HRP contributes significantly to the strategic management process. qualifications. have the responsibility to respond to the business implication of HR objectives and strategies. work experience etc Determine the additional (net) human resource requirements in light of the organisation’s current human resources Develop action plans to meet the anticipated human resource needs: these may include a comprehensive succession plan for each department. managerial estimates etc. resultant recruitment strategies. etc. expertise and total number of employees (demand for human resources) required to achieve the organisation and department objectives: different statistical methods. designing compensation packages to attract and retain quality staff. in turn. training levels. whereby the organisation’s long term strategies are translated into the shorter term performance objectives and time schedules per division and department Define the skills.linked HRP is based on a close working relationship between HR practitioners and line managers. The means here denotes the role HRP plays in ensuring that the organisation has the right number of quality people available to achieve objectives through strategy implementation. making available bursary schemes for current participants who may eventually fill scarce positions. For this purpose the cascade approach can be used. the design and implementation of managerial development and other training programs. The human resource planning process Human resource planning consists of six basic steps: • Identify organisational objectives and strategies (these are obtained from the business plan which resulted from the strategic planning processes followed) • Determine the impact of the organisation’s objectives on specific organisational units.

or Opportunity identified a result of changes in the following? • Business environment • Business strategy • Organisational circumstances What are the dimensions of the issue? • Evidence of the issue • Scope • Coverage/applicability • Potential business impact • Alternative solutions and their pros and cons Management Actions/resources Measures/Targets What course of action will be implemented? • Strategy of 1-2 years • Specific action programs • Responsibility assigned • Timing for completion • Financial and staff resources required How will the results be measured? • Outcomes • Measures/evidence • Target levels Trainer’s Guide 21 . gap.AIM Organisational Development Programme Human Resource Management Human Resource Strategy Worksheet Human Resources Issue Analysis: Evidence Options What is the HR problem.

how the other HR functions (e. to a very large extent. leading and control they are crucial to the company. The organisation’s management determines the culture of the organisation. planning. their recruitment is very expensive and continuity is lost when unexpected changes have to be made. the way organisational strategies are translated into HR strategies. selection. organising. and through its generic management functions. Proper replacement schedules need to be put in place. since the HRP process determines. Human resources Negative: Layoff.g. termination.AIM Organisational Development Programme Organisational and human resource planning Human Resource Management The following depicts the relationship between organisational planning and human resource planning. Factors Economic Competition Government action Historical data Others Nature of firm Organizational objectives Divisional Department objectives Skills and abilities required Skills Inventory Net human resource requirements Types. recruitment. Furthermore. Trainer’s Guide 22 . good managers are difficult to replace should they leave the organisation. especially top and middle level managers. numbers. This is an extremely important consideration for organisations. play an extremely important part in taking the organisation into the future and ensuring not only survival but also continued growth and financial success. resignations. performance management and development) are structured and performed. retirement Managerial succession planning Why pay special attention to managerial succession planning? The fact is that the management cadres.

natural attrition. Failure to do so is bound to relegate many strategic planning activities to paper exercises. It is for this reason that the strategic intentions of the organisation as it is typically found in vision and mission statements must be reflected in and built into individual jobs. in the modern organisational context they must also be considered to have their origins in the needs of customers. Trainer’s Guide 23 .AIM Organisational Development Programme Human Resource Management The managerial succession planning consists of the following activities: • • • • • Identify projected vacancies e. through affirmative action. compensation and so forth. In many cases for example. promotion. The importance of understanding jobs and their requirements There are four very good reasons why in-depth attention must be given to the dynamics of the individual jobs: • The goals and strategies of the organisation can only be attained through the joint. retirement. Accurate job information provides the most objective yardstick for enabling fair and nondiscriminatory HRM. etc) Choose replacement candidates for each position Draw up replacement charts that indicates replacement possibilities in terms of time required to get ready additional technical training and managerial development programs required Design and implement development plans for selected employees Conduct a bi-annual succession planning review and make adjustments where these may be required. Human resource planning (job analysis) Most facets of human resource management have their roots in the jobs that people perform. Jobs and their requirements represent the point of departure for all the human resource management functions such as recruitment. courts have insisted on job analysis in order to establish a base for decisions when settling cases involving allegations of unfair HR practices The jobs people perform and the ways in which they think about them are prime determinants of the extent to which work is experienced as a meaningful activity • • • In summary. selection. and • The characteristics of the people occupying those jobs. When HR decisions are based on accurate information about the requirements of jobs. organisational expansion or restructuring. jobs do have their origins in the goals of the organisation. but more specifically. interdependent effort of individual contributors. As such HRM always involves two fundamental aspects namely: • The job that needs to be performed individually or collectively.g. the risk of unfair practices can to a large extent be avoid.

Trainer’s Guide 24 .AIM Organisational Development Programme Group Work: Human Resource Management Ask participants to pair up with a colleague from their NGO and fill out the human resource planning form. (20 minutes) Ask the groups to share some of what they have planned.

Then for each objective. How many additional personnel are needed for each? Objective # of Employees Needed Skills Needed # of Additional Employees Needed Trainer’s Guide 25 . Next. and the skills these people will need to have. go back through the list and make a note of how many employees are currently available for each objective. estimate the number of employees needed to carry out the objective.AIM Organisational Development Programme Human Resource Management Exercise: Human Resource Planning List the main strategic objectives of your organisation.

• Identifying the value that the employee’s role adds to the organisation.] A job description should include the following: • • • • • The scope of the job The business results influenced The reason the job exists. Demonstration. Trainer’s Guide 26 . the value the job adds to the organisation The identification of key clients and donor markets. Masking Tape. Markers/Chalk. • making your subordinate aware of the impact of his/her role and how it influences the productivity and success of the organisation’s work. a job description can help you by: • ensuring that an employee’s understanding of his or her role corresponds to yours. Responsibilities and objectives If you are a manager or supervisor. developed for the Ntinga MSP Project. • identifying the key clients and donors your employee responds to. • identifying whom your employee relies on to meet his/her objectives.AIM Organisational Development Programme Human Resource Management 5 Job Descriptions Time: Resources: Methods: Objectives: 1 hour 30 minutes Flip Chart/Board. Question and Answer. Presentation By the end of the session the participants should be able to: Define job description Identify the procedures on how to prepare job descriptions Demonstrate skills and techniques used in job descriptions Procedures Introduce the session by asking these questions ? What is a job description? What does a job description cover? How is it written? Do you have them in your NGOs? DEVELOPING JOB DESCRIPTIONS [The following session was adapted from World Education/South Africa training on Performance Management Systems. Template (job description template) Brain Storming.

“What is critically important for one to achieve?” Each job responsibility should be clarified further with specific requirements and objectives. as well as for managers to evaluate them. They respond to the question. Objectives serve to clarify the responsibilities. then use it as a basis to write a description for their own jobs. They clarify what is expected from an individual in a specific position. and serve as the yardstick against which employees can evaluate their own performance. Trainer’s Guide 27 . Together. The identification of responsibilities is the key starting point for the effective management of human performance. Group Work Ask participants to individually fill out the Job Description worksheet. (20 min) Then ask each person to work with one or two others to share the job descriptions they have written and to critique each other’s work.AIM Organisational Development Programme Human Resource Management Responsibilities Responsibilities explain the job description in measurable terms. (30 min) Reconvene the class. create a summary list of the characteristics of a good job description. Ask what was challenging about writing the job descriptions.

Now write a complete Job Description for your position.AIM Organisational Development Programme Human Resource Management Exercise: Creating a Job Description Name: Job Title: Why does your job exist? What value does your job add to the organisation? What would happen if your job did not exist? Who are your most important relationships with on the job? How does your job impact on the achievement of the organisation’s objectives and success? List the responsibilities and objectives of your job. Trainer’s Guide 28 .

As a group. Question and Answer. Trainer’s Guide 29 . Presentation By the end of the session the participants should be able to: Define recruitment and selection functions Identify the procedures involved in recruitment and selection process Demonstrate skills and techniques used in recruitment and selection Procedures Introduce the session by asking participants: ? What is recruitment and selection? What does recruitment and selection involve? How do you write a job advert? How do you recruit staff in your NGOs? What problems do you encounter in the recruitment and selection process? Activity Divide participants into three groups and ask members of each group to discuss and write a job advert to be inserted in a daily newspaper. Masking Tape Brain Storming. Demonstration. Participant representatives then present as the rest critique these presentations. Markers/Chalk. generate a list of characteristics of a good recruitment process.AIM Organisational Development Programme Human Resource Management 6 Recruitment Time: Resources: Methods: Objectives: 1 hour Flip Chart/Board.

Create a list in summary of the procedures involved in job induction. (20 minutes) Ask the groups to report back. Each group is asked to discuss and develop the procedures for inducting new staff. Demonstration. other participants critique. Trainer’s Guide 30 . Question and Answer. Markers/Chalk. Presentation By the end of the session the participants should be able to: Define Orientation and Placement functions Identify the procedures involved in orientation and placement process Demonstrate skills and techniques used in orientation and job placement Procedures Introduce the session by asking: ? What is job induction and job placement? What does job induction and placement involve? How do you practice this? How do you implement job induction and job placement in your NGOs? Activity The facilitator asks the participants to form four groups.AIM Organisational Development Programme Human Resource Management 7 Induction Time: Resources: Methods: Objectives: 1 hour Flip Chart/Board. As group representatives present. Masking Tape Brain Storming.

AIM Organisational Development Programme Human Resource Management 8 Human Resource Development: Training Time: Objectives: 2 hours At the end of the session. Human resources development Human resource development encompasses all the activities related to the development of human resources at the individual as well as the collective level. organisation development and career development to improve individual. participants should be able to: Describe the training and development cycle Procedures Ask participants these questions: ? What is training needs assessment and how is it done? Do you undertake TNA in your NGOs? How? Activity: Participants are asked to pair up and carry out a Self-Training Needs Assessment by asking each other: • What do you do? • What does this involve? • What challenges/constraints do you encounter? • How are the above challenges met? Participants will present according to their paired groups. Trainer’s Guide 31 . group and organisational effectiveness. The term human resource development can be defined as the integrated use of training and development.

therefore enable individuals to be considered for advanced levels of responsibility in their careers. Job rotation. Participating in developmental assessment centres. It gives individual opportunities to grow and it provides organisations with employees who are capable of working smarter rather than harder because of increased experience and knowledge from which they can creatively draw. In order to be clear about what the meaning of training and development is. etc. The term development is used when the focus is on stimulating new ideas and insights through planned learning that is not necessarily job related. skills and Trainer’s Guide 32 . The term education refers to a planned learning intervention intended to help individuals qualify for advancement. it is necessary to distinguish between education. locally and abroad.AIM Organisational Development Programme HRD: An integrated approach Organisational Development Human Resource Management Human Resource Development Training and Development Career Development Definitions related to Training and Development A number of terms exist which to some extent relate to personal growth and performance improvement. but they differ in that they do not result in educational credentials. Attending conferences. Its emphasis is on individual career preparation. developmental leading activities are future oriented and not specially related to one’s current job. Training on the other hand refers to a short term. As in the case with education. Examples of developmental activities in an organisational context include: • • • • Participating in projects not directly related to one’s job. development and training. The educational credentials obtained through such learning – such as degrees. diplomas or certificates. planned learning intervention that is intended to establish or improve a match between current job requirements and the knowledge.

skill and future performance. It is important to realise that all developmental and change efforts involve learning processes. the next section is devoted to obtaining an understanding of this very important topic. Needs analysis The purpose of a needs analysis is to gather information about the knowledge and skills that are needed to improve the performance of individuals and ultimately of the organisation as a whole. When people have undergone training they should be able to apply it immediately to their jobs. Its major focus therefore is on ensuring the acquisition of the required knowledge and skills for presently known tasks. All the above definitions have something in common. There are essentially two sources of learning needs. Given the fundamental role that learning plays. The need for proper training is increased by the following considerations: • Increased productivity • Improvement in employee morale • Availability for future personnel needs of the organisation • Improvement in health and safety • Reduces on employee supervision • Personal growth • Organisational stability The training and development cycle Training and development in organisations consist of a cycle of events as depicted in the figure below and once evaluation has taken place we are in a position to determine whether the needs have been fully addressed or whether further intervention is necessary in which case the cycle repeats itself.namely the concept of learning.AIM Organisational Development Programme Human Resource Management attitude of the individual. The importance/need for training It’s important that the employees be inducted into training programmes to improve their job knowledge. Trainer’s Guide 33 . Training enables people to meet the minimum requirements of the jobs and to improve what they do. namely: Organisational strategies and goals and individual development plans.

AIM Organisational Development Programme Human Resource Management The training and development cycle Analysis of Learning Needs Evaluate learning Select solutions for learning needs Implement learning In an organisation analysis information is gathered about issues such as: • New technologies that will be implemented • Strategies to upgrade service and quality levels • New markets that will be served by the organisation • Changes in the environment of the organisation Trainer’s Guide 34 .

Masking Tape. Group Discussion By the end of the session the participants should be able to: Explain how to carry out performance appraisal Describe the common techniques of performance appraisal Identify the challenges of performance appraisal system into the organisation Ask participants ? What is Performance management? What performance management system will entail? What is performance appraisal? Why do we carry performance appraisal? Performance management: the context During the 1980’s the Total Quality Management movement developed methods whereby all the management tools. job design and training and development joined performance appraisal as part of a comprehensive approach to performance. is linked to that of the whole organisation. Handout Brain Storming. Demonstration. This implies that each individual employee’s performance is linked to that of his department. Tools such as compensation management. These links are established through the strategic management process. Question and Answer. Trainer’s Guide 35 . which is a much broader concept than performance appraisal. including performance appraisal was used to ensure the achievement of goals. involves having in place systems and methods that translate the objectives of strategic management into individual performance terms through HRM practices. which determines that performance should be managed in such a way that the organisation can reach its objectives. Performance management. which in turn. Markers/Chalk.AIM Organisational Development Programme Human Resource Management 9 Performance Management Time: Resources: Methods: Objectives: 2 hours Flip Chart/Board.

Although the focus in the rest of this section will be on PA.AIM Organisational Development Programme Human Resource Management The typical performance system would include the following elements: The organisation has a shared vision of its objectives. Trainer’s Guide 36 . performance appraisal (PA) is an important component of the performance management process. what the most desirable appraisal process is. performance appraisal methods. Performance appraisal Ask: ? What methods are used to assess employee performance in your NGO? As was illustrated above. or a mission statement. the criteria to use in evaluation. which it communicate to all employees Strategies are determined that will assist the organisation in achieving its objectives These strategies are translated to departmental or sectional strategies Performance management targets are set for individuals. and the appraisal interview. common rater errors who should do the ratings.these relate to both operating unit and wider organisational objectives Regular formal review processes are conducted to assess individual performance in terms of the extent that individual targets were met or how well jobs were done (this is the traditional performance appraisal process) The review process is used to identify training and development needs and compensation outcomes Effectiveness of the whole process and its contribution to overall organisational performance is evaluated. this enables the organisation to allow for changes and improvement. it should always be kept in mind that it is only a component of a much larger process. The main consideration of organisations regarding performance appraisal are the objectives of the appraisal process.

g. rather than how. the rater may be required to rate a teller on how well he “communicates with clients” Outcome-based criteria: Based on what was accomplished or produces. e. and it is often criticised for missing important aspects such as “quality”. [1997] suggests that three criteria can be considered. etc. loyalty. There are. This criterion is not valid for every job. [1997] the objectives of performance are evaluative and development in nature: Evaluative objectives: • compensation decisions • staffing decisions • evaluating the selection system Development objectives: • performance feedback • direction for future performance • identifying training and development needs • Performance appraisal criteria It is always difficult to decide what to rate employees on during performance appraisal process.AIM Organisational Development Programme The objectives of performance appraisal Human Resource Management According to Carrell et al. • • Trainer’s Guide 37 . Behaviour-based criteria: Based on specific behaviours that lead to job success. some advantages as well as disadvantaged to all these. E. The best way to decide is to use the information provided by job analyses to make decision.g. whether they are used singly or in combination: • Trait-based criteria: Based on the personal characteristics of the employee. dependability. creativity. however. Carrell et al. here the focus is on who a person is and not on what he does or how well he does it.

a list is compiled of actual job experiences relating to usually good or unacceptable employee behaviour.AIM Organisational Development Programme The appraisal process A genetic performance process can be presented as follows: Determine performance requirements Choose an appropriate appraisal method Train the raters Discuss the methods with employees Appraisal according to job standards Give employees feedback on the appraisal Determine future performance goals Determine training needs Make performance based compensation decisions Human Resource Management Appraisal methods There are numerous appraisal methods available. Trainer’s Guide 38 . These most important ones for the purpose of this manual are” Graphic rating scales: Employees are rated according to the extent that they measure up to pre-determined work standards or required attributes. Normally. Critical incidents: These methods use specific examples of job behaviours that have been collected from employees and or supervisors. not all which are applicable here.

because people are rating people. The main advantage of this method is employee participation in goal setting goal and in the determination of expected standards. It involves goal setting – the employee and his manager mutually set goals. Show participants the attached sample Performance Appraisal format. Furthermore. the strive for goals sometimes occur at all costs. and not all jobs’ contents can necessarily be expressed in terms of specific goals. no matter what method is used. This involves an employee being assessed not only his/her immediate supervisor but other stakeholders like: • • • • • • • Peers / colleagues Customers Suppliers Subordinates Government agencies NGOs with similar objectives Donors The most important element with 360 degree appraisal is that it facilitates quick feedback and eliminates bias element. some of the disadvantages are that goals are sometimes set too high (this results in employees becoming despondent). Performance appraisal will always be a somewhat traumatic experience for employees. Research has indicated that there is not one single method that produces results that are significantly better or more valid than other methods.AIM Organisational Development Programme Human Resource Management MBO (Management by Objectives): This is one of the most widely used performance appraisal methods. The employee is then at a later stage appraised on the extent to which set goals were achieved. ratings will always be subjective. Types of Appraisals Modern organisations currently depend on the 360 degrees performance appraisal. The fact is that all methods have flaws. as well as any other good samples that are available. It’s more objective than traditional approach and demonstrates best human resources practices. Trainer’s Guide 39 . However.

Some questions are to be answered by the reviewer. and how do you see yourself growing and developing professionally? (to be completed by employee) Trainer’s Guide 40 .AIM Organisational Development Programme Sample Performance Appraisal Employee Name: Reviewer Name: Date of Review: Human Resource Management The following questions are intended to guide the employee and reviewer in appraising the employee’s performance during the past year. How can the employee improve his/her work performance? II. What can the employee do that would help the organisation operate more effectively? (To be completed by reviewer and employee) B. What strengths did the employee demonstrate in completing the above work activities? C. What are the primary work activities that were undertaken by the employee since the last review period? B. Please use specific examples where appropriate and possible. I. and some by both the reviewer and the employee. Future Activities and Expectations A. Past Performance (to be completed by both reviewer and employee) A. What can the rest of the organisation do that would help everyone do a better job? (To be completed by reviewer and employee) C. What are your goals for the next year.

Review Results Human Resource Management Reviewer’s Comments: Employee’s Comments: Specific plans/actions until next review period: __________________________________ ______________________________ Reviewer’s Signature Employee’s Signature Trainer’s Guide 41 .AIM Organisational Development Programme III.

where raters are influenced by critical incidents of a positive or negative nature that occurred fairly recently.e. to consistently award scores of 3 and 4 on a 6-point scale). [1997:p. gender. seniority. probably because they find it difficult to evaluate some employees higher or lower than others.AIM Organisational Development Programme Rater training and common rater errors Human Resource Management It is important to subject those employees that will be involved in appraisal to rater training. If however the performance management system requires formal appraisal interviews and feedback at specific intervals for specific purposes. Supervisory bias. liaisons in the organisation.294] suggest that rate training should include the following themes: • • • • • the objectives of performance appraisal how to avoid typical rater errors how to conduct non-discriminatory appraisals the ethics of appraisals How to conduct effective appraisal interviews. Regency. Carrell et al.e. and give higher ratings to employees with whom they have a lot in common. where the supervisor has an inherent bias towards people in terms of their (the ratees’) age. or other non job-related characteristics. where the rater consistently gives too high or too low evaluations. Ask: ? How do you feel about giving negative feedback to employees? What method of discussion do you prefer and why? The appraisal interview Proper performance management and just purely good management will always mean that good managers give regular informal feedback to their subordinates. Typical rate errors are: 1. where a particular quality of the employee (positive or negative) is appreciated (or disliked) so strongly. i. 2. race. that it contaminates the ratings on other dimensions during appraisal. qualifications. 4. 5. or they may have a lack of familiarity with the job’s contents. where the rater tends to give average scores to all or some of his rates (i. without taking critical incidents into account that occurred during the whole period since the previous formal performance review. 3. Leniency or strictness. The halo effect. Some raters are may also be influenced by the “similar-tome”-effect. Central tendency. there are a number of guidelines that could be useful for raters: Trainer’s Guide 42 .

Formal performance review There is a periodic formal review which. highlight positive performance indicators as well as areas where performance was inadequate Use a dialogue process to determine areas for development (identify training needs) Emphasises that it is the employee’s responsibility to improve where necessary offer your assistance. The process of performance management Initiation Performance management starts at the top level in an organisation with definitions of mission. plans and objectives. in effect. Effective performance is reinforced with praise. and that of the organisation. strategy and objectives. etc Prepare properly for the interview: make sure you know how to approach the discussion about the rate’s performance Explain the method used (if this had not been done yet) Discuss the employees performance on each dimension/objective in turn. to help the employee improve his performance and skills Assist the employee in designing a personal development plan Discuss performance standards/objectives to be assessed at the next performance review process. that is no interruptions.AIM Organisational Development Programme The feedback interview process: • • • • • • • • Human Resource Management Conduct the interview professionally. recognition and the opportunity to take on more responsible work. Performance agreements Performance agreements are then made between individuals and their managers. comfortable setting. Trainer’s Guide 43 . These lead to more detailed definitions of functional or departmental missions. is a stocktaking exercise but its emphasis is on looking forward to the next period and redefining the performance agreement rather than raking over past events. which set out: • The key result areas of the job • The objectives and standards of performance associated with these key result areas • Work and personal development plans • The skills and competencies required to fulfil job requirements Continuous review The performance of individuals and their development is reviewed continuously as part of the normal process of management.

4. 5. Work to a clear structure 4. Discuss performance not personality Encourage analysis of performance Don’t deliver unexpected criticisms Agree measurable objectives and a plan of action How to manage under-performers 1. Ask questions such as: • How do you feel you have done? • What do you feel are your strengths? • What do you like most/least about your job? • Why do you think that project went well? • Why do you think you didn’t meet that target? 7. 2. Create the right atmosphere 3. Build feedback into the job Provide feedback on actual events Describe. 7. 10. Identify and agree on the problem Establish the reason(s) for the shortfall Decide and agree on the action required Resource the action Monitor and provide feedback Trainer’s Guide 44 . 5. Use praise 5. Let individuals do most of the talking 6. Be prepared 2. 3. 2.AIM Organisational Development Programme Performance management skills Giving feedback 1. don’t judge Refer to specific behaviour Ask questions Select key issues Focus Provide positive feedback Human Resource Management Conducting performance reviews 1. 8. 6. Invite self-appraisal This is to see the situation from the individual’s point of view and to provide a basis for discussion-many people underestimate themselves. 3. 8. 9. 4.

Trainer’s Guide 45 . They have 10 minutes to brainstorm for best practices in human resource management for their given topic.AIM Organisational Development Programme Group work: Human Resource Management Ask participants to work in small groups. Bring groups back together and ask them to report back. Compare responses to the following summary. Assign each group one of the major headings below.

AIM Organisational Development Programme Human Resource Management BEST PRACTICES IN HUMAN RESOURCES MANAGEMENT THAT CREATE SATISFACTION AT WORK STAFF GUIDES and MANUALS • HR Manual explains work process. function and responsibilities • Every three years an external pay evaluation takes place • All staff salaries are reviewed on an annual basis • All staff are offered pension plan • All staff are offered a medical service or cash in lieu • All staff are offered funeral/death benefits for immediate family • All staff are offered housing or cash in lieu of • All staff are offered transport or cash in lieu of • All staff are entitled to annual leave Trainer’s Guide 46 . performance expectations+ measures+ regulations • Manual exists in either electronic or hard copy • Manual was updated within the last 12 months • Each department has their own copy of the HR manual • Departmental heads use the manual (want examples) • The manual is clearly written and comprehensive • The manual is understood by non HR people at all levels ROLES AND RESPONSIBILITIES • An employee manual exists in electronic or Hard Copy • All employees have a copy of this manual • Job descriptions for each role are written • Job description for each role are communicated • Each member of staff has annual objectives • There is an impartial grading evaluation system in place BENEFITS AND REMUNERATION • Staff are only paid according to grade.

reviewed and updated.AIM Organisational Development Programme Human Resource Management INDUCTION PROCESS • • • • • All employees receive and sign letter of appointment All employees receive and sign employment conditions All employees receive a copy of their job description and objectives within one week of starting employment Working conditions orientation is in place Induction process in place APPRAISAL SYSTEM • • • • • • Appraisal process in place All staff receive an appraisal minimum every 12 months The results of each appraisal recorded The appraisal is linked to individual training and development Personal objectives set and agreed at the appraisal Individual person objectives are reviewed each quarter TRAINING AND DEVELOPMENT • A training plan incorporates training for all staff member • The training plan is monitored. • Every employee receives annual training. hygienic and well kept canteen available • Canteen kept clean and hygienic Trainer’s Guide 47 . • Managers receive basic management training: • How to deliver appraisal • How to communicate • How to run a team WORKING CONDITIONS • Environment appropriate for staff to do their jobs • Environment clean.

or remuneration. there is always a compromise or trade-off at stake: one cannot satisfy all the employees all the time. Trainer’s Guide 48 . As can be seen from the definition. Yet there is no exact. Handout Brain Storming. Compensation management is the process an organisation uses to compensate its employees in monetary and non-monetary ways to the mutual satisfaction of the organisation and the employee. one should understand that compensation refers not only to extrinsic rewards such as salary and benefits.g. That is.AIM Organisational Development Programme Human Resource Management 10 Compensation Time: Resources: Methods: Objectives: 1 hour Flip Chart/Board. the need to know that I’m OK) and they have extrinsic needs (e. The organisation responds by providing compensation which includes monetary (e.g. redesigning the job to make it more interesting). People have intrinsic needs (e.g. Although the term compensation is often interchangeably with wage and salary administration. Masking Tape. the term compensation is actually a broader concept. money). Group Discussion By the end of the session the participants should be able to: Define the term the compensation management Identify the importance of the compensation management in the organisation Describe the various systems and procedures used by the organisation in motivating staff and improve staff performance Ask participants: ? What is Compensation Management? Write the responses on flipchart and relate this to compensation Management. the opportunity to learn a new skill) and extrinsic rewards (e. and to help them to acquire their desired standard of living. compensating employees for what they give the organisation is as much an art as it is a science. a performance bonus) and non monetary rewards (e. the need to pay for food. objective method of determining compensation for any one job or employee. but also to intrinsic rewards. the chance for promotion and more changing jobs. Furthermore.g. Employees’ need for income and their desire to be fairly treated by the organisation make compensation management all the more important for the organisation. monetary and non-monetary ways to reward employees have to be considered. Question and Answer. to provide incentives for them to work harder and smarter. Markers/Chalk. such as recognition. housing and education) and to satisfy these needs they want intrinsic rewards (e.g.g. As such.

g. and therefore a spectrum of demands.AIM Organisational Development Programme Human Resource Management The importance of compensation ? Why has compensation become such an important and controversial topic in recent times in Uganda? Until quite recently compensation was a fairly straightforward issue for HR practitioners. However. pension fund contribution etc. it should be clearly understood that there are a number of stakeholders that have a variety of expectations and needs. and proven proficiency. Also. As such seniority. the end-result could be financial disaster for the organisation and job loss for many. This was largely due to the following: • • • • • • • Money as a motivator: more information on the role of money as a motivational factor became available through research Flexible organisations: There is a move away from large bureaucratic organisations to more flexible organisations. gender. both in terms of structure and processes. These stakeholders include: • The organisation • The employees • The government (in terms of legislation. The reason for this was that most medium to large organisations had clear-cut salary structures. during the past few years’ compensation management took on a whole different format. as far as compensation is concerned. e. were often seen to be important criteria when making compensation related decisions. across the board percentage based general salary increases. as well as percentage based salary increases for exceptional performance. Traditionally pay differentials were often based upon issues other than performance. Trainer’s Guide 49 . When an organisation fails to balance expectations.g. worked or to what extent they added value to the organisation. A skilful balancing act has to be performed and compromises reached. It was therefore accepted practice to have rigid salary scales. at least a part of the compensation packages had to be performance-based Compensation strategy as an important component of company strategy: Compensation strategy was increasingly seen to be an integral part of company goals and strategies Besides the points mentioned above. High taxes: Increasing taxes for salary earners forced organisations to make provision for more tax friendly salary packages Pay for performance: Organisations realised that there was no point in paying employees just for being members of the organisation. the Labour Relations Act) For organisations it is often a gruelling task to simultaneously satisfy all the stakeholders’ expectations. annual bonuses. etc. were the rule rather than the exception. Pressure from stakeholders: The number of stakeholders increased and they became more assertive (e. experience. systems and policies. age. the trade unions) Inflation: Continuous across-the board-percentage increases made it very difficult for organisations to keep up with upward spiralling compensation costs. race.

they do compare job offers and pay scales.e. and whether it is capital or Labour intensive. management must decide whether to be a high pay level employer. a 9% and a 10% salary increase? The goals of compensation The four main objectives of any organisational compensation system are the following: • Attracting good employees • Retaining good employees • Motivation • Satisfying external requirements Attracting good employees: Group Work Write this question on a flipchart and ask participants to answer in groups. but can’t afford to leave since their organisation pays the best salaries. a low pay level employer or a competitive pay level employer. taking one response from each group and circulating through each group until no new answers are generated. The consequences of inappropriate compensation strategies. It may also happen that employees working for such an organisation may become very frustrated and unproductive when they are unhappy in the organisation. A strategy pay decision by the employer is choosing a general pay level for the organisation. This is known as the “golden handcuffs” A low pay level strategy may be chosen because management decides to expect and live with the increased Labour turnover and morale problems that may result. They have 10 minutes to brainstorm. salaries that are market related. could of course be disastrous for this organisation! Imagine what the difference for an organisation could be between. or even a minor calculation error during salary adjustments. Sometimes management will expect more from employees because the organisation pays higher than average salaries.AIM Organisational Development Programme Human Resource Management Depending on the type of organisation. the annual total salary bill could be as high as 70% of total expenditure. for instance. To attract good employees organisations therefore have to offer competitive salaries. the organisation will attract and retain the best employees within the geographic area. The savings in total personnel costs may be estimated to outweigh the disadvantages associated with low morale and high turn Trainer’s Guide 50 . A high pay level strategy may be chosen when management believes that if it maintains high salaries. Then have the groups report back. In comparison to other employers within the same industry and Labour market. Organisations normally make use of wage surveys to establish what market-related salaries for their particular industry are. i. industry or sector. Job applicants who receive more than one offer will naturally compare the offers in terms of what his take-home pay will be. • How can an organisation ensure that they attract the best people? Compare responses to the following information: Although most job applicants are not aware of the exact salaries or wages offered by different organisations for similar jobs within the Labour market. The average figure is approximately 55%. the industry in which it operates the type of products or services it provides.

Employers may choose this strategy simply because the organisation cannot afford to pay more. OTHER ISSUES TO ADDRESS IN REGARD TO COMPENSATION: • • How can an NGO find out about prevailing wages in their field. are likely to choose this pay level option A competitive pay level strategy may be decided upon when management believes that if the organisation’s pay level is competitive within the Labour market. those operating in highly competitive markets. good work environment. the employee problems associated with the low pay level strategy can be largely avoided.) Trainer’s Guide 51 . certain kinds of benefits. recognition. and those that are in a Labour intensive industry where there is also a good supply of Labour. so as to create a competitive salary scale? What are some non-financial forms of compensation that an NGO can offer that may encourage an employee to accept the post despite a low salary? (For example. Small employers. Most employers will try to remain competitive within the local Labour market by offering salaries that are similar to those offered by competing employers.AIM Organisational Development Programme Human Resource Management over.

Ask participants to work with a colleague from their organisation to complete the plan. take them up to make photocopies for AIM. Give them about 20 minutes. When the trainer visits the NGO for the Consultancy Clinic. Markers. The Plan will help the organisation. They will begin implementing the plan. Workshop participants from each organisation will draft an Action Plan during this session. Action Plan Handout Exercise. If plans are complete at the end of the session. the workshop trainer and AIM to track progress on implementing what they have learned in the workshop. Discussion By the end of the session. Trainer’s Guide 52 . • It sets specific responsibilities and deadlines. concrete activities. complex and potentially overwhelming objective such as developing a strategic plan into manageable.AIM Organisational Development Programme Human Resource Management 11 Action Plans Time: Resources: Methods: Objectives: 30 minutes Flip Chart. ask for a volunteer to explain it for the benefit of those participants who are new. • It helps them decide what additional resources are needed. as time allows. ask for a volunteer to name one objective they have included on their plan. Ask in general what this planning process was like for them. The Action Plan is intended to help AIM’s partner organisations apply what they have learned in this workshop to their own organisations. Ask: ? Why is it helpful to make an Action Plan? Action planning is important for the following reasons: • It breaks down a large. • It helps them think about what can be realistically achieved with their resources and staff. participants will be able to: Write an Action Plan for implementing human resource management Distribute Action Plan handout. then return them to the NGOs before they leave. he/she will discuss their progress on the Plan. Introduce the purpose of the AIM Action Plan. Since many participants are now familiar with the Action Plan format from previous workshops. AIM will receive a copy. To conclude. The workshop participants will share the Plan with colleagues at their organisations.

AIM Organisational Development Programme Human Resource Management Action Plan for Human Resource Management Name of Organisation: _____________________________________________ Activity Who When Resources Needed Trainer’s Guide 53 .

Trainer’s Guide 54 . Post-Training Self-Assessment. When participants are finished. ask for someone to share an area in which they have increased their understanding. Markers. Collect the self-assessment and evaluation form.AIM Organisational Development Programme Human Resource Management Evaluation and Close Time: 30 min Resources: Flip Chart. Remind participants that this is the same Self-Assessment that they filled out at the beginning of the workshop. Give them about 15 minutes. An AIM representative should close the workshop by giving out certificates and thanking the trainer. Ask what helped them to learn these new knowledge/skills. Ask what more is needed to help them master these topics. Workshop Evaluation. Then ask if there are topics about which participants did not increase their understanding. you may give the participants back their original Pre-Training Self-Assessments so that they can compare their results. Ask participants to fill out both forms. and what topics still need more time. Ask them to fill it out again so that they can reflect on what topics they have learned about. If desired. Certificates of Participation Distribute the Post-Training Self-Assessment form and the Workshop Evaluation form.