BCM 408 Notes
BCM 408 Notes
Introduction
HRM is a part of the broader field of management, thus one must understand what
management is in order to understand human resources management.
Definition of terms
Management
Management is a branch of social sciences that deals with establishing and achieving
various objectives (Kaila, 2003).
Management is the art of getting things done through and with other people (Mary Parker
Follet).
Management is the process of planning, organizing, staffing, directing and controlling the
efforts of organization’s members and using all other resources to achieve objectives.
HRM deals with acquisition, retention, development and effective utilization of human
resources. HRM is a strategic and coherent approach to management of an organization’s
most valued assets i.e. the people who individually and collectively contribute to
achievement of its objectives.
In less academic terms, HRM deals with getting people, activating them, preparing them
and keeping them. The weakness of this definition is that it does not acknowledge
separation.
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The success of any organization depends on its ability to attract and keep good people.
Organizations that are able to acquire, develop, stimulate and keep outstanding workers
will be both effective (able to achieve their goals) and efficient (using the least amount of
resources necessary). Those organizations that are inefficient or ineffective risk the
hazard of either stagnating or going out of business.
Functions of HR Managers
a) Planning
This is the process of formulating future courses of action. It is taking a walk into the
future and deciding
- what will be done
- when it will be done
- who will do it
- how it will be done
- how to measure results
Organizations are goal-seeking units; planning is stating the goals and how they will be
achieved. The process of planning should include the active and enlightened participation
of the HR manager. He/she should translate the plans into the number of people required
to achieve/accomplish them.
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b) Organizing
c) Directing
Most managers spend a great deal of their time directing and thus involves;
Motivation – this is finding incentives that satisfy the needs of employees e.g.
though money, job security, good working conditions, appropriate supervisions,
recognition, friendly co-workers and interesting job opportunities for growth etc.
Leadership- this is the ability to influence the behavior of other people in a certain
direction. Leaders influence through expert knowledge, respect, personal
charisma and other means.
d) Coordination
e) Controlling
This includes:-
Establishing performance goals or standards
Measuring the actual performance
Comparing actual performance to set standards
Rewarding excellent performance or taking corrective actions
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f) Staffing
Procurement
This is the acquisition of the right quality and quantity of employees necessary to achieve
the objectives of the organization. It deals specifically with:
Strategic human resource planning
Determining sources of recruitment
Communicating with potential candidates
Inviting and receiving job applications
Short listing the candidates
Selection through interviews
Conducting pre-employment tests
Induction
Placement
Procurement must not violate laws such as affirmative action and equal employment Act
which are to ensure fairness in employment.
Development
Many managers have realized that employees do not learn new skills through trial and
error or simply by watching other employees. Training has to do with the increase of
skills for proper job performance. The importance of development will continue to
increase due to changes in technology, the realignment of jobs and the increasing
complexity of the managerial task. Managers need to be developed to acquire knowledge,
conceptual, diagnostic and human skills.
Another area of training is career development which is the continued effort to match
long term individual and organizational needs.
Compensation
Employees exchange their works for rewards and money is probably the most important
reward. Compensation administration is concerned with the adequate and equitable
remuneration of employees for their contributions to organizational objectives. It is one
of the important functions of the HR manager. The compensation includes
Basic pay
Incentives, commissions etc
Benefits
Bonuses
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Integration
The need for integration arises from the realization that employees may have difference
between work groups, the employees and management or even between the organization
and other organizations. The essence of integration is to effect a reasonable reconciliation
of the conflicting interests.
Maintenance
The aim of maintenance is to ensure that employees are happy with their jobs,
organization, relationship with colleagues etc. Through maintenance one would be able to
perpetuate a willing and able workforce. The maintenance of employees is heavily
affected by constant communication of the employees, good physical work conditions
and health and safety of workers.
Separation
This involves returning the employee to the society from which they came and ensuring
that the returned employee is in as good shape as possible. It may take the form of
retirement, layoffs outplacement, redundancies, summary, dismissal and death.
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Features of HRM
Managing change to the mutual advantage of individuals, groups, the enterprise and
the public
Challenges of HRM
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considered when making strategy e.g. volatile political situations, contentious global
trade issues, fluctuating exchange rates and unfamiliar cultures.
2. Profitability through growth – the drive for revenue growth means that company must
be creative and innovative and this means encouraging the free flow of information
and shared learning among employees
3. Technology – the challenge is to make technology a viable productive part of work
setting. This involves preparing employees adequately through development to
embrace increasing technology
4. Intellectual capital – this is the source of competitive development for organization.
The challenge is to ensure that firms have capability to fight assimilate, compensate
and retain human capital in the shape of talented individuals they need who can drive
a global organization that is both responsive to its customers and opportunities of
technology. They have also to consider how social capability of the organization that
is the ways in which people interact can be developed. Organization have to focus on
organization capital i.e. knowledge they own and how it should be managed.
5. Change – the greatest challenge because face is adjusting to is embracing non stop
change. They must also be able to learn rapidly and continuously and take on new
strategic imperatives faster and more comfortably should be on a position to adopt
change and manage it easily, effectively, efficiently using the most economical
techniques
Other Challenges
Changing mix of the work force
Changing values of the workforce
Changing expectations of employees
Changing levels of productivity
Changing demands of productivity
Epidemics e.g. HIV/AIDS, Ebola
Regional conflicts
Natural disasters
Leaner workforce
Formulating HR policies and strategies
Today’s workers are different from those of yester years in that they comprise of;
Increased minorities occupying senior positions in organization
Increasingly educated workforce
More female employees some with young children
Employees from all nationalities
Fewer blue collar jobs
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There is a trend towards mass education in many countries. The challenge is to redesign
jobs to make them more challenging to the employees.
The EEO & AA laws and opportunities for education have led to more women in the
workforce e.g.
1890 – 17% workers in USA were females
1971 – 38% workers in USA were females
1981 – 43% workers in USA were females
Some of the female employees have children below 6 years of age. This makes it difficult
for them to be regular members of an organization. The firm or HR manager must make
changes e.g.
Flextime working hours (months/weeks)
Sharing of one job between more employees
Provision of child care services e.g. Chemelil sugar company
With automation many manual jobs are quickly disappearing. The challenge is for the
lower qualified employees who must get higher qualifications to remain employed.
Flextime is a German invention which allows employees to vary their working hours so
long as they work for 8 hours in a day. This has been used a lot in eh insurance industry.
The benefits include
Better morale
Better fit of the work time to the employees “body clock”
Improved handling of fluctuating workloads
Increased customer service because the firm is open for longer hours
Less “billing time” by employees
Reduced absenteeism and tiredness
Less jam in traffic and shopping outlets
Disadvantages of flexitime
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Utility costs are increased plant is open for longer time
Not all the necessary employees may be present when a problem arises forcing a
solution to be delayed until a later time
Difficulties in recording hours worked – too much paper work
Conflicts with overtime laws
Supervision may be needed for longer duration
Confusion to customers and suppliers
Today’s workers expect much more than those of yesteryears. They expect
Better homes
Better cars
Better foodstuffs
Better clothing
Expect their children to attend good schools and attain good certificates in high
school, college etc
Spend more on leisure and recreation
Expect a greater voice in shaping their destiny at their place of work
Some of the information which they have to give in order to get and retain jobs
The practice of HRM is now constrained by numerous laws passed by the government in
the areas of
Procurement (e.g. equal employment opportunity)
Affirmative action
Development of workers
Compensation (minimum wages act)
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Integration
Maintenance
Separation
The HR manager may not be a legal expert and may require the services of the company
secretary
This is the process of determining an organization’s human resource needs. It is also the
process of systematically reviewing human resource requirements to ensure that the
required number of employees, with required skills are available when and where they
are needed. It involves matching internal and external supply of people with job
openings, anticipated in the organization over specified period of time.
External environment
Internal environment
No action Recruitment
Restricted hiring
Reduced hours
Early retirement
Lay offs Creative recruiting
Downsizing
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HR executives are now focusing their attention on how human resources can help
organization achieve its strategic objectives, therefore, the HR management must now be
highly involved in the strategic planning. Strategic planning is the process by which top
management determines ove3rall organizational purposes and objectives and how they
are to be achieved. Top management expects HR activities to be closely aligned to the
mission and strategic goals and to add value towards achieving these goals. Specific HR
plans are determined from organizational plans.
i) Requirements
ii) Availability
Forecasting HR Requirements
This involves determining the number and types of employees needed and these
projections reflect various factors such as production plans and changes in productivity
Forecasting HR availability
In order to forecast availability, HR manager looks to both internal and external sources.
When employee requirements and availability have been analyzed the firm can determine
whether it will have a surplus or shortage of employees.
Ways must be found to reduce the number of the employees if a surplus is projected.
Some of these methods includes: restricted hiring, lay off, reduced hours, early retirement
If worker shortage is forecasted firm must obtain proper quantity and quality of workers
from outside the organization. In this case, external recruitment and selection are
required.
Surplus when surplus of employee is forecast, following methods may be used to correct
the situation
a) Restricted hiring
This approach reduces workforce by not replacing those who leave, new workers are
hired only when overall performance of the organization is affected
b) Reduced hours
An organization reduce total number of hours worked e.g. instead of having 40 hours
week, the management may decide to cut each employees time to 30 hours. These cut
back normally applies only to hourly employees because management and other
professionals are exempt employees and therefore not paid on an hourly basis.
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c) Early retirement
Some employees will be delighted to retire but others will be some what reluctant. Those
that are reluctant may be willing to accept retirement of the total retirement package is
made sufficiently attractive
At times a firm has no choice but to lay off part of its workforce. Lay offs has become a
way of life since economic down turn began in 2000. It is a very difficult decision for
organization to make but may have to embark on that if there is no other alternative.
People may discover their full potential when they leave employment
Creativity and entrepreneurial spirit is enhanced
The organization is able to eliminate employees who do not add value to the
organization
Through retrenchment the organization can get rid of employees who are
untrainable and incapable of learning
Employees who feel underutilized in the organization can look for other work to
do where they can utilize their skills
The employer is able to get an optimal number hence efficiency is achieved
A performance culture is created because retrenchment serves as a wake up call
for non-performers
c) Training programmes
Zero-Base Forecasting
This approach uses the organization’s current level of employment as the starting point in
determining future employment needs. The need for new employees may arise due to
retirement, dismissals, resignations or other separations. If one of these situations creates
a vacancy it is not automatic that the position will be filled. An analysis should be made
to determine whether there is any justification to fill the position. This means that this
approach is concerned with justifying employment decisions.
Bottom-up Approach
This approach forecasts progress upwards in the organization from small units or sections
to ultimately provide an aggregate forecast of manpower needs. It reasons that in order to
know manpower requirements, the supervisor or manager in each unit or section is the
most knowledgeable person about personnel requirements. This approach requires that
each level in the organization should forecast for its employment needs and once this is
done the requirements are passed on to the personnel department for analysis.
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This approach uses past employment needs as a predictor for future manpower
requirements. It is useful in organization involved in marketing. One predictor of
employment is sales volume because there exists the relationship between sales demand
and the number of employees needed e.g. if sales demand increases, the number of
employees required will rise. In this way one can approximate the number of employee
required at different demand levels. However, employment levels can also be determined
by other independent variables other than sales like the efficiency level of the present
employees.
Simulation
This is a technique for experimenting with a real world situation through a mathematical
model representing that isolation. A model is an abstraction of the real world thus a
simulation model is an attempt to represent a real world situation through mathematical
logic to predict what will occur. Simulation assists managers by permitting them to ask
many what if questions without having to make a decision resulting in real world
consequences. In HRM a simulation model might be developed to represent the inter-
relationships among employment levels and many other variables. The manager could
then ask what if questions such as this;
What would happen if we put 10% of the present workforce on overtime?
What would happen if the plaint utilized tow shifts or three shifts?
The purpose of the model is to permit managers to gain insight into a particular problem
before making the actual decision.
As sales increase so does the number of employees and vice versa. Using such a method
managers can approximate the number of employees required at different demand levels.
Forecasting HR Requirements
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This is an estimate of number of kinds of employees the organization will need at future
dates in order to realize its stated goals. Before HR requirements can be projected,
demand for the firms goods or services must be forecasted. The forecast is them
converted into people requirements for the activities necessary to meet these demand.
Forecasting HR Availability
The determination of whether the firm will be able to secure employees with necessary
skills and from what sources, it is called an availability forecast. It helps to show whether
needed employee may be obtained from within the company, from outside organization
or from a combination of the two sources.
JOB ANALYSIS
This is the systematic process of determining the skills, duties and knowledge required
for performing jobs in an organization. In today’s rapidly changing work environment the
need for a sound job analysis system is critical. New jobs are being created and old jobs
are being re-designed or eliminated. A job analysis that was conducted a few years ago
includes obsolete data. A job consists of a group of tasks that must be performed for an
organization to achieve its goals. A position is the collection of tasks and responsibilities
performed by one person and there is a position for every individual in an organization.
The purpose of job analysis is to obtain answers to six important questions
Job analysis provides a summary of a job’s duties and responsibilities its relationship to
other jobs, the knowledge and skills required working conditions under which it is
performed
Job analysis is therefore most often performed because of changes in the nature of job.
Job analysis information is used to prepare both job descriptions and job specifications.
Job Description
Job description document that states the tasks, duties and responsibilities of the job. It is
important that job descriptions be accurate and relevant. Interviewers would fail to select
the best qualified worker if this information were not available. They should provide
concise statements of what employees are expected to do on the job and indicate how
employees do it and the conditions under which the duties are performed. Items
frequently included in a job description include
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Major duties performed
Percentage of time devoted to each duty
Performance standards to be achieved
Working conditions and possible hazards
Number of employees performing the job and to whom they report
The machines and equipment used on the job
1. Job description
2. Date of the job description
3. Job summary
4. Duties performed
5. Relation to other jobs
6. Supervision
7. Machine, tools and equipment
8. Working conditions
9. Hazards
Job Identification
This includes the job title, the department, the reporting relationship, a job number or
code. A good title will closely approximate the nature of the work content and will
distinguish that job from others.
Job Summary
The job summary provides a concise overview of the job. It is generally a short paragraph
that states the job content
Duties Performed
The body of the job description outlines the major duties to be performed. Usually one
sentence beginning with an action verb such as receives, performs, establishes etc
adequately explains such duty
Supervision
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Under it is given the number of persons to be supervised a long with their job titles and
the extent of supervision involved that is general, intermediate or close supervision
Working Conditions
This usually gives as information about the environment in which a job holder must
work. This includes cold, heat, dust, wetness, moisture, fumes, oily, odour etc
Hazards
This gives in the nature of risks to life and limb and their possibilities of occurrence of
such risks
Job Specification
This is a standard of personnel and it designates the qualities required for an acceptable
performance. It is a written record of the requirements sought in an individual worker for
a given job. It refers to a summary of the personal characteristics required for a job. It is a
statement of the minimum acceptable human qualities necessary for the proper
performance of a job. Items included in the job specification are factors that can be
shown to be job related such as educational requirements, experience, personality traits
and physical abilities. In practice job specifications are often included as a major section
of job descriptions.
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9. Maintenance and separation
Staffing
All areas of staffing would be up-hazard if the recruiter did not know the qualifications
needed to perform the various jobs. Lacking up to date job descriptions and specifications
a firm would have to recruit and select employees for jobs without having clear
guidelines. This practice would have disastrous consequences such a practice would
make an organization or would land an organization into a big mess as well as loose a lot
of funds.
Information contained in a job specification therefore helps in matching the right people
for the right jobs. Information contained in job description helps in enlightening the
potential candidate about all the factual information about the job and the organization
that they need to know before joining the organization so that they can select themselves
out. If they are not comfortable with either the job or the organization.
Performance Appraisal
Employees should be evaluated in terms of how well they accomplish the duties specified
in their job descriptions and any specific goals that may have been established. A
manager who evaluates an employee on factors not clearly pre-determined can be
accused of discrimination.
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Safety and Health
Information derived from job analysis is also valuable in identifying safety and health
considerations. Employers are required to state whether a job is hazardous. Information
contained in a job description should reflect this condition. In certain hazardous jobs
workers may need specific information about the hazards in order to perform the jobs
safely.
Legal Considerations
A well prepared job analysis is important for supporting the legality of employment
practices. Job analysis data are needed to defend decisions involving promotion, transfers
and demotion
Job analysis has traditionally been conducted in a number of different ways because
organizational needs and resources for conducting job analysis differ. Selection of a
specific method would be based on the purpose for which the information is to be used
e.g. job evaluation, pay increases, development etc and the approach that is most feasible
for a particular organization.
Observation
When using the observation method the job analyst watches the worker perform job tasks
and records his or her observation. The job analysis could either watch the employee
directly as he/she works or may watch a film. This method is used primarily to gather
information on jobs emphasizing manual skills such as those of machine operators.
Analyzing managerial jobs using this method may prove difficult. It can also help the
analyst identify inter-relationships between physical and mental tasks.
Questionnaires
Questionnaires are typically quick and economical to use, the job analyst may administer
a structured questionnaire to employees to identify the tasks they perform. In most cases
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employers may lack verbal skills, a condition that make this method less useful. Also
some employees may tend to exaggerate the significance of their takes suggesting more
responsibility than actually exists. Follow-ups may become difficult of something is not
clear since questionnaires are mostly anonymous.
Interviews
An understanding of the job may also be gained through interviewing both the criteria
should take into account such factors as quality and quantity of output accident
frequency, regularity or otherwise in attendance grades obtained during training, speed of
promotion in an organization, professional achievements, formal ratings determined by
the supervisor etc
Employee Recording
Job analysis information is gathered by having employees describe their daily work
activities in a diary or log. Employees are expected to record each activity or task as soon
as they complete it on every working day. This requires job holders to record their daily
activities. It is time consuming and expensive too because it may extend over long
periods of time
The job analyst goes through the diary log and analyses that particular job. With this
method the problem of employee exaggerating job importance may have to be overcome
because information contained in the diary/log shows what the employees have actually
done
This method uses supervisors with extensive knowledge of the job. Specific job
characteristics are obtained from experts. Although it is a good data gathering method it
often overlooks incumbent perceptions about what they do on their job.
Note: The above methods are not mutually exclusive or collectively exhaustive. Also no
one method is universally superior. The best results then are usually achieved with
combination of methods as well as with information provided by individual employees,
their immediate supervisors professional analysts etc
The person who conducts job analysis is interested in gathering data on what is involved
in performing a particular job. The people who participate in job analysis should include
at a minimum the employee and the employee’s immediate supervisor. Large
organizations may have job analyst but in small organizations line supervisors may be
responsible for job analysis. Organizations that lack the technical expertise often use
outside consultants to perform job analysis.
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Regardless of the approach taken before conducting job analysis, the analyst should learn
as much as possible about the job by reviewing organizational charts and talking with
individuals acquitted with the jobs to be studied.
Before beginning the supervisor should introduce the analyst to the employees and
explain the purpose of the job analysis. Although employee attitudes about the job are
beyond the job analyst control the analyst must attempt to develop mutual trust and
confidence with those whose jobs are being analyzed. Upon completion of the job
analysis two basic human resource documents that is job description and job specification
can be prepared.
The existing job descriptions can also provide a starting point from which to build the
revised job description
2. Selection of representation position to be analyzed
Since the analysis of all jobs could be time consuming flow representative poisons
should be analyzed.
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5. Developing job specifications
This entails specifically mentioning what personal qualities, traits, skills and
background that is necessary to get the job done
1. Work activities
Work activities and processes
Activity records e.g. in film form
Procedures used
Personal responsibility
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To provide enough information about the job so that unqualified applicants can
select themselves out of job candidacy.
Internal
External
Internal Sources
Many large organizations attempt to develop their own low level employees for higher
positions. These promotions can occur through an internal search of current employees
who have bid for the job. Been identified through the organizations HRM system or even
been referred by a fellow employee.
Advantages
Disadvantages
1. They could be dysfunctional of the organization uses less qualified internal sources
only because they are there when excellent candidates are available on the outside
2. Internal searches may generate in fighting among rival candidates for promotion
3. It decreases morale levels of those not selected
4. It causes excessive in breeding i.e. it hinders new blood with current ideas,
knowledge and enthusiasm
The organizations HRM files should provide information as to which employees might be
considered for positions opening up within the organization. Most organizations can
generate lists from computer databases of individuals who have the desirable
characteristics to potentially fill the vacant positions.
In many organizations it is standard procedure to post any new job openings and to allow
any current employees to apply for the position. The posting notification can be
communicated on a central notice board in the plants or offices, in the weekly or monthly
organizations newsletter or in a specially prepared posting sheet from human resources
outlining those positions currently available. Even if current employees are not interested
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in the position, they can pass these notices on to other individuals, who may seek
employment within the organization that is employee referrals
Employee referrals and recommendations one of the better sources for individuals who
will perform effectively on the job is a recommendation from a current employee
Advantages
1. Employees rarely recommend someone unless they believe the individual can
perform adequately. Such a recommendation reflects on the recommender and when
someone’s reputation is at stake, we can expect the recommendation to reflect
considered judgment
2. Employee referrals may receive more accurate information about their potential jobs.
The recommender often gives the applicant more realistic information about the job
than could be conveyed through external sources. This information therefore reduces
unrealistic expectations and increases job survival
3. Employee referrals are an excellent means of locating potential employees in those
hard to fill positions
Disadvantages
1. Advertisements
This is one of the most popular methods used for getting employees from external
sources. The type of job often determines where the advertisement is placed. The
higher the position in the organization, the more specialized the skills or the shorter
the supply of that resource in the labour force, the more widely dispersed the
advertisement is likely to be. The search for a top executive might include
advertisements in national publications, the local daily newspapers or can be posted
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on executive advertisements of lower level jobs usually appear in local daily
newspapers, trade journals or on internet job sites. There are three variables that
influence the response rate to advertisements:
Some organizations place a blind box advert. One that includes no specific identification
of the organization. Respondents are asked to reply to a post office box number or to an
employment firm acting as an agent between the applicant and the organization. Large
organizations with a national reputation seldom use blind adverts to fill lower level
positions. However, when the organization does not wish to publicize the fact that is
seeking to fill an internal position or when it seeks to recruit for a position where the
incumbent may be removed soon then a blind box advert may be appropriate.
Although blind advertisements can assist HRM in finding qualified applicants may
individuals may be reluctant to answer then because
1. There is the fear that the advert has been placed by the organization in which the
employee is currently employed
2. The organization itself is frequently a key determinant of whether the individual is
interested, therefore potential candidates may be reluctant to apply
3. Such adverts also have a bad reputation because some organizations place
advertisements when no position exists in order to test the supply of workers in the
community and to build a backlog of applicants
4. Others place advertisements to satisfy affirmative action requirements when the final
decision for the greater part has already been made
Employment Agencies
The major difference between these is the type of clientele served. All states provide a
public employment services. The major different between public and private employment
agencies is
a) Image – that is private agencies are believed to offer positions and applicants of a
higher caliber
Private agencies may provide a more complete line of services i.e. they may advertise the
position, screen applicants against the criteria specified by the employer and provide a
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guarantee covering six months or one year as protection to the employer should the
applicant not perform satisfactorily.
The third agency consists of management consulting, executive search or head hunter
firms. These are specialized private employment agencies that specialize in middle level,
top level executive placement as well as hard to fill positions such as actuaries. In
addition to the level at which they recruit the features that distinguish executive search
agencies are their fees, their nationwide contacts and the thoroughness of their
investigations. Executive search firms do preliminary screening. They seek out highly
effective executives who have the right skills, can adjust to the organization and those
that are willing to consider new challenges and opportunities. These firms can screen
candiddate4s and at the same time keep the prospective employer anonymous. In the final
stages senior executives is the prospective firm can move into the negotiations and
determine the degree of mutual trust.
Educational institutions at all levels offer opportunities for recruiting recent graduates.
Most educational institutions operate placement services where prospective employers
can review credentials and interview graduates. Most also allow employers to see a
prospective employees performance through cooperative arrangements and internships.
High schools or vocational technical schools can provide lower level applicants. Business
or secretarial schools can provide administrative staff personnel whereas graduate schools
can provide professional and managerial level personnel. Although educational
institutions are usually viewed as sources for inexperienced entrants to the workforce it is
not uncommon to find individuals with considerable work experience using an
educational placement service. They may be workers who have recently returned to
school to upgrade their skills or former graduates interested in pursuing other
opportunities.
Professional Organizations
Many professional organization including labour unions operate placement services for
the benefits of their members. Professional organizations publish rosters of job vacancies
and distribute these lists to members. It is also common practice to provide placement
facilities at regional and national meetings, seminar and workshops where individuals
looking for employment and company’s looking for employees can find each other
building a network of employment opportunities.
Unsolicited Applicants
Unsolicited applicants whether they reach the employer by letter, email, telephone or in
person constitute as source of prospective applicants. The number of unsolicited
applicants depends on economic conditions the organization image and the job seekers
perception of the type of jobs that might be available. Even if the company has no current
openings the application can be kept on file for later needs. Unsolicited applications made
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by unemployed individuals generally have a short life. Those individuals who have
adequate skills and who could be prime candidates for a position in the organization if a
position where currently available, usually find employment with some other
organization that does have an opening. However, in times of economic stagnation,
excellent prospects are often unable to locate the type of job they desire and may stay
actively looking in the job market for a long time.
Internet recruiting has become very popular lately such that newspaper adverts and
employment agencies may be on their way to extinction as primary sources for conveying
information about job openings and finding job candidates. Nearly four out of five
organizations currently use the internet to recruit new employees by adding a recruitment
section to their website. Large organizations although plan a lot of internet recruiting
often develop dedicated sites specifically designed for recruitment. They have the typical
information you might find in an employment advert that is qualification sought,
experience required benefits provided and they also include the organization’s product,
services, corporate philosophy and mission statement. This information increases the
quality of applicants as those whose values don’t match with the organization tend to
self-select themselves out. The best designed of those websites include an on-line
response phone such that applicant need not to send a separate ‘resume’ by mail, email or
fax. Applicants fill in a resume page and press the submit button.
Aggressive job candidates are also using the internet. They set up their own web pages
called websumes to sell their job candidacy. When they learn of a possible job opening
they encourage potential employees to check them out in their websites. Their applicants
have standard resume information supporting documentation and sometimes a video
where they introduce themselves to potential employers. These same websumes are also
frequently searched by recruiting firms that scan the internet in search of viable job
candidates.
Advantages
1. Internet recruiting provides a low cost means for most businesses to gain
unprecedented access to potential employees worldwide
2. It is a way to increase diversity i.e. getting potential employees from across the globe
3. Due to a wide search, internet recruiting provides people with unique talents
4. As computer prices fall, access costs to the internet decrease and therefore many
potential employees access internet hence organization can advertise higher level jobs
as well as low level jobs
Disadvantages
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1. There is not any personal touch on contact between the potential employee and the
organization
2. Not all potential candidates can access the internet therefore the selection choice may
not be very wide
When recent experience is needed, competitors and other firms in the same industry or
geographic area maybe the most important source of recruits. The most highly qualified
applicant often come directly from competitors in the same labour market as people
typically do not enter the workforce loaded with experience and job skills. Smaller firms
in particular look for employees trained by large organizations that have greater
developmental resources. The fact that approximately 5% of the working population is at
anyone time either actively seeking or receptive to a change of position emphasizes the
importance of these sources. Even organization that have policies of promotion from
within occasionally look elsewhere to fill positions.
Although the ethics of corporate rating may be debatable it is apparent that competitors
and other firms do serve as external sources of recruitment for high quality talent.
At one time, when employees quit a company their managers and colleagues tend to view
them as being disloyal, ungrateful, and would be punished with no return policies. The
common attitude is that if you leave your firm you do not appreciate what the company
has done for you. This is a thing of the past because today’s smart employers try to get
their best ex-employees to come back. The advantage of tracking former employees is
that the firm knows their strength and weaknesses and also these ex-employees know the
firm. Recruiting and hiring a former employee can be a tremendous benefit and can
encourage others to stay with the firm. It sends the message that things are not always
greener on the other side of the fence.
Individuals with disabilities have historically faced stigmas and stereo-typing and this
was reflected in recruitment and hiring. Disabilities Act has helped change this situation.
Attitudes also change as our population ages and the likelihood disability increases. One
can always identify more closely with the problems of a given group when one becomes
part of that group. society benefits when people with disabilities are recruited and hired.
The economy becomes stronger and the government supports fewer people. Disabled
individuals can be valuable because forced to learn new or different ways of doing things,
they are often able to apply these skills to their work. Their presence in a work group can
add to its diversity and increase the flow of new ideas.
Older Individuals
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This includes those who are retired and older workers in general. Although these workers
are often victims of negative stereotyping the facts support the notion that older people
can perform many jobs extremely well. Management surveys indicate that most
employers have high opinions of their older workers. They value them for many reasons.
Compared to younger workers many older employees have more positive work habits,
lower absenteeism rates and higher levels of commitment to the organization.
These may also be a good potential recruitment because they may be true entrepreneurs
who are hardworking and creative. For many firms these qualities may be essential for
continued competitiveness. Such individuals may constitute a source of applicants for any
number of jobs requiring technical, professional, administrative or entrepreneurial
expertise within a firm.
Job Fairs
Internships
Benefits of Internship
1. During the internship the student gets to view business practices first hand
2. The intern contributes to the firm by performing needed tasks
3. Through this relationship a student can determine whether a company could be a
desirable employer
4. Having a relatively lengthy of time to observe the students job performance, the firm
can make a better judgment regarding a persons qualifications. Studies show that
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students with internship experience are able to find jobs more easily and they
progress much further and faster in the business world than those without
5. Internships also provide opportunities for students to bridge the gap from business
theory to practice
6. Internships serve as an effective public relations tool that provides feasibility for the
company and assists in recruitment.
Open Houses
Open houses are a valuable recruiting tool especially during periods of low
unemployment. Here firms gather recruiters and potential candidates in warm casual
environment that encourages on the spot job offers.
Open houses are cheaper and fast then hiring through recruitment agencies and they are
also more popular than job fairs. There are pros and cons to holding a truly open house. If
the event is open it may draw a large turnout but it may also attract a number of
unqualified candidates. Some companies prefer to control the type of candidates they host
and so they conduct invitation only sessions. In this scenario the HR staff screen resumes
in response to job adverts then invites only pre-selected candidates. Advertising of open
houses may be through both conventional media and the internet where a firm might
feature its open house on its home page.
Walk in Applicants
If an organization has the reputation of being a good place to work it may be able to
attract qualified prospects even without extensive recruitment efforts. Acting on their
own initiative when qualified workers may seek out a specific company to apply for a job
unsolicited applicants who apply because they are favourably impressed with the firms
reputation often prove to be valuable employees.
Event Recruiting
Disadvantages
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Expensive – because of recruitment costs
The organization is not sure of their full potential and performance
Reality shock as a result of unrealistic expectations
Take time to settle down
Alternatives to Recruitment
Outsourcing
Overtime
Multi-skiling (job enlargement)
Contingent workers (temporary and part time)
Employee leasing
Even when human resource planning indicates a need for additional employees a firm
may decide against increasing the size of its work force. Recruitment and selection costs
are significant when you consider all the related expenses e.g. the search process,
interviewing agency fess, relocation and processing of a new employee. A firm should
consider its alternative carefully before engaging in recruitment.
1. Outsourcing
This is the process of transferring responsibility for an area of service and its objectives
to an external provider. Subcontracting of various functions to other firms has been a
common practice for decades. This decisions may make sense when the subcontractor
can perform a given function e.g. maintenance, cleaning etc with perhaps even greater
efficiency and effectiveness. Management should understand however that there may be
no retreat. Once a decision to outsource is made and internal systems disassembled it may
be difficult or even impossible to reverse practice. Therefore should outsource contract is
vital. Within the past few years outsourcing has become a widespread and increasingly
popular alternative involving almost every business area including human resources.
2. Contingent Workers
These are part-time temporary or independent contractors. Due to global competition and
changing technology organizations are not able to do accurate forecasting of their
employment needs in advance. To avoid hiring people one day and resulting to lay offs
the next, firms look to the benefits of flexible employment strategies. The cost factor also
prompts the organization to use the services of such contingent workers. To avoid some
of these expenses and to maintain flexibility as work loads vary, many organizations
utilize part time or temporary employees. Companies that provide temporary workers
assist their clients in handling excess or special workloads. These companies assign their
own employees to their customers and fulfil all the obligations normally associated with
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an employer. Client firms avoid the expenses of recruitment, absenteeism, turnover and
employee benefits.
3. Employee Leasing
The leasing firms have got employees who are specialists in providing various services
and these employees are usually sent to the various client firms. The employees are
accountable to the leasing firm for everything including salaries and benefits as well as
other issues that concern or affect employee/employer relationship. Because leasing
companies provide workers for many organization they often enjoy economies of scale
that permit them to offer a wider selection of benefits at considerably lower costs due to
the large number of employees in their pool. Workers also frequently have greater
opportunities for job mobility. If a client organization business suffers a down turn the
leasing company offers job security. It can transfer employees to another client avoiding
lay offs and loss of seniority.
4. Overtime
This is the most commonly used method of meeting short term fluctuations in work
volume. Overtime may help both the employer and employee. The employer benefits by
avoiding recruitment, selection and training costs. The employees gain from increased
income during the overtime period. There are potential problems with overtime however
some managers believe that when employees work for unusually long periods the
company pays more and receives less in return. Employees may become fatigued and
lack the energy to perform at a normal rate. Consciously or not employees may pace
themselves to ensure overtime. They may also be accustomed to the added income
resulting from overtime pay. Employees may even elevate their standard of living to the
level permitted by this additional income then when overtime is limited the employee
morale deteriorates a long with their pay. This possibility has become reality to an
increasing number of employees as many organizations are reducing bonus and overtime.
This is whereby employees’ duties are increased such that they can handle extra duties
that they were not initially performing.
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Trade unions
Corporate image
Economic factors
Organizational policies
Nepotism
Factors external to the organization can significantly affect the firms recruitment efforts.
Of particular importance is the demand for and supply of specific skills in the labour
market. If demand for a particular skill is high relative to supply an extraordinary
recruiting effort maybe required. These external factors include:
2. Legal Considerations
Legal matters also play a significant role in recruitment practices. This is not surprising
since the candidate and the employer first make contact during the recruitment process.
One survey found that about ¼ of all discrimination claims resulted from employers’
recruitment and selection action. Therefore it is essential for organization to emphasize
non-discriminatory practices at this stage. Affirmative action and equal employment
opportunity guidelines imposed by the government ensure that organizations avoid any
discriminative actions in regard to recruitment and selection.
3. Corporate Image
The firm’s corporate image is another factor that affects recruitment. If employers believe
that their employer deals with them fairly the positive word of mouth support they
provide is of great value to the firm. It assists in establishing credibility with prospective
employees. Good reputations earned in this manner may help attract better and more
qualified applicants. A firm’s positive public image encourages prospective employees to
respond to its recruitment efforts and enhances its recruitment success.
4. Political Interference
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This affects recruitment where prominent people in the government or politicians insist
on their preferred candidates being given prominence priority whenever there are
vacancies in the organization. This may compromise on quality in that most of these
candidates are usually not qualified. Yet the most qualified who could be out there are
left out.
5. Trade Unions
These interfere with recruitment efforts by ensuring that their members are considered
first whenever there are vacancies in the organization. This may hinder qualified
candidates who may not be union members from being considered.
6. Economic Factors
When there is an economic ‘boom’ firms engage in many recruitment activities whereas
economic recession prompts organization to lay off workers as well as downsize.
1. Organizational Policies
An organizations policy can have a significant impact on recruitment. Those firms that
stress a policy of promotion from within its own ranks may limit those qualified
candidates who may be available from external sources. Promotion from within is the
policy of filling vacancies above entry level positions with current employees.
When an organization emphasizes promotion from within its workers have an ‘incentive
see’ co-workers promoted, they become more aware of their own opportunities and this
increases employee morale. Frequently new blood provides new ideas and innovation that
must take place for firms to remain competitive. In such cases, even organization with
promotion from within policies may opt to look outside the organization for new talent.
2. Nepotism
Company policies related to the employment of relatives may also affect a firm’s
recruitment efforts. The content of such policies varies greatly but it is common for firms
to have anti-nepotism policies that discourage the employment of close relatives
especially when related employees would work in the same department under the same
supervisor or in supervisor subordinate roles. However when the labour market is tight a
firm may decide that it makes more sense to keep relatives on board than to loose them to
a competitor.
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These constraints higher the organization from getting the best candidate because various
forces impinge upon such selection
2. Job unattractiveness
If the policy aims at providing promotion to its employees from within, people would be
attracted to it because such a policy enjoy severe advantages such as that of creating good
public relations, building high morale, encouraging good people who are ambitions and
improving the probability of a good selection. However this may hinder the organization
from getting the best candidate who could be available from external sources.
4. Union requirements
Some unions emphasize on recruitment to members of the unions only. Where such
situation occurs, management has to recruit from a restricted supply.
5. Government’s influence
An employer cannot distinguish any individual on the basis of physical appearance, sex,
sections or religious background for purposes of recruitment. This is due to the equal
opportunity employment guidelines imposed by the government to avoid/prevent any
discriminative actions in employment.
SELECTION
It is the process of choosing the best employees out of the many recruits.
It is required of recruits to fill a job application from which seeks four types of
information
a) Personal information – names, addresses, telephone numbers, marital status, age,
gender, nationality, height, weight,
b) Education background – schools, higher education, institutions attended
qualifications obtained, special training, membership or professional bodies
c) Employment history – companies worked for, dates of employment, duties and
responsibilities, military service
d) Other interests - sports, hobbies, membership and clubs, societies
The job application form gives;
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A basis for drawing up a shortlist
Provides a foundation of knowledge to be used before the interview
Post interview decision making process
After evaluating the job application form, candidates are shortlisted and invited for
interview.
Selection of candidates begins after completion of the recruitment process i.e. after
adequate number of applications has been secured through different sources of
recruitment. It involves carefully screening and testing the candidates who have applied
for the job. There are 2 reasons for selection:
SELECTION PROCESS
There is no standard selection process because it differs from job to job and from
company to company. Selection process consists of the following steps:
The following steps make up the selection process.
i) Preliminary Interview
The selection process begins with a preliminary interview. The basic purpose of this
initial screening of applicants is to eliminate those who do not meet the position
requirements. At this stage the interviewer asks a few straight forward questions. In
addition to eliminating unqualified job applicants quickly a preliminary interview may
produce other positive benefits for the firm. It is possible the position for which the
applicant applied is not the only one available. A skilled interviewer will know about
other vacancies in the firm and may be able to steer the prospective employee to another
position. These interviews can also be affected via telephone or video tapes.
a) Telephone Interview
These keep selection costs down because telephone interviews are cheaper. This method
lacks face to face contacts effect. It is not possible to observe no-verbal cues from the
candidate that may give hints to aspects of the candidates interpersonal skills. However
this may be most economically feasible way to exchange information with applicants in
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distant locations. In addition, an employer can screen a larger number of candidates
using this method.
The specific information requested on an application for employment may vary from firm
to firm and even by job type within an organization. The application form provides
preliminary information as well as aid in the interview by indicating areas of interest and
discussion. It is a good means of quickly collecting verifiable basic historical data from
the candidate.
1. Biographical Data
This may include name, father’s name, date and place of birth, age, sex nationality,
height, weight, physical disability if any, marital status, number of dependants etc.
2. Educational Attainment
Includes education (subjects offered and grades secured, training acquired in special
fields and knowledge gained from professional or technical Institutions.
3. Work Experience
Includes previous experience, the number of jobs held with same or other employers,
including the nature of duties and responsibilities and the duration of various
assignments, salary received, grades and reasons for leaving the present employer.
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6. Other Items
May include names and addresses of previous employers, references etc
NB: The data submitted in an application form should help predict the
Candidate’s chances for being successful on the job. The information sought should
be relevant to the objective of selection.
To ensure that the information given by the applicant is true, the application form usually
carries a threat of discharge at any time after employment if the information furnished in
it proves to be false. The questions included in an application form should be valid and
necessary. They should not by their wording or nature encourage dishonest answers.
Medium sized and large organizations use tests more than small companies. Large
organizations are likely to have trained specialists to run their testing programs.
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TYPES OF TESTS
Interest
Personality
Aptitude Achievement
Test
Work Situation
Mental Mechanical
sample test
test test
Objective Projective
Psychomotor test test test
Job knowledge
Aptitude Tests
Are widely used to measure the ability of a candidate to learn a new job or skill. They
detect peculiarities or defects in a person’s sensory or intellectual capacity.
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c) Psychomotor/Skill Tests
Are tests which measure a person’s ability to do a specific job. They are administered
to determine mental dexterity or motor ability and similar attributes involving
muscular movement, control and coordination. They are of primary importance in the
selection of workers who perform semi-skilled and repetitive jobs e.g. packing,
inspecting, testing etc
2. Achievement Tests
Are also known as proficiency tests. They measure the skill or knowledge which is
acquired as a result of a training program and on the job experience.
3. Personality Tests
These tests aim at measuring those characteristics of an individual which are non-
intellectual in nature. They probe deeply to discover individual’s value system,
emotional reactions and maturity and characteristic mood. They also assess
motivation interests, ability to adjust to stresses of everyday life, capacity for
interpersonal relations, self-confidence, patience, fear, initiative and judgment,
integrity, sociability etc.
a) Objective Tests
These measure self sufficiency, dominance – submission and self-confidence. They
are paper and pencil tests
b) Projective Tests
A candidate is asked to project his own interpretation into certain standard stimulus
situations. The way in which he responds to these stimuli depends on his own values,
motives and personality. An example of these tests is thermatic appreciation tests and
Rorschach blot tests
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c) Situation Tests
These measure an applicant’s reaction when he is placed in a peculiar situation i.e. his
ability to undergo stress and his demonstration of tolerance under pressure.
4. Interest Tests
These tests aim at finding out the types of work in which a candidate is interested.
They are inventories of the likes and dislikes of the people of some occupations,
hobbies and recreational activities. They indicate the occupation a person is most
interested in and the one likely to provide satisfaction. These tests compare the
individual’s interests with those of successful employees in a specific job.
An example of these tests is strong vocational interest blank that measures interest.
iv) Interviews
This is the most widely used selection tool. Interviews are used for a variety of purposes
including selection, appraisal, disciplinary action, counseling and general problem
solving Employment interview is a goal oriented conversation in which the interviewer
and applicant exchange information. Interview is a selection technique which enables the
employer to view the total individual and directly appraise him and his behavior. It is a
method by which an idea about an applicant’s personality including his intelligence,
interests and general attitudes towards life can be obtained by a face to face contact.
The interview should provide information abut the company, the job and expectations of
the candidate. Other areas that should be included in an interview are:
1. Occupational Experience
The interviewer explores the candidate’s knowledge, skills, ability and willingness to
handle responsibility. Although successful performance in one job does not guarantee
success in another, it does provide an indication of the person’s ability and
willingness to work.
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2. Academic Achievement
In the absence of significant work experience a person’s academic record takes on
greatest importance.
3. Interpersonal Skills
An individual may posses important technical skills significant to accomplishing a
job. However if the person cannot work well with others, chances for success are
slim.
4. Personal Qualities
These personal qualities normally observed during the interview include physical
appearance, speaking ability, vocabulary, adapting etc. As with all selection criteria
employer should consider these attributes only if they are relevant to job performance
5. Organization ‘fit’
Organization fit refers to management perception of the degree to which the
prospective employee will fit in with the firm’s culture or value system.
Types of interviews
It is semi-structured in nature and utilizes questions in key areas which have been studied
in advance by the interviewer. The typical subject discussed at such interviews include a
candidates home life, education, previous experience, hobbies, recreational interests etc.
The interviewer provides instructional information about his organization, the nature of
work, pay, opportunities for advancement, job demands etc. The idea of such an
interview is to get a true picture of the interviewer by intensively examining his
background and thinking so that a correct evaluation and decision may be made.
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In this type of interview groups rather than individuals are interviewed. The interviewees
are given certain problems and are asked to reach a specific decision within a particular
time limit. The applicants enter into group discussions knowing that the interviewee is a
test but do not know which qualities are being measured or tested. A few observers watch
the activities of the interviewees i.e. those who take a lead in the discussions, those who
try influencing others, those who summarize and clarify issues, those who speak
effectively etc.
6. Stress Interview
In the stress interview, the interviewer assumes a hostile role towards the applicant. He
deliberately puts him on the defensive by trying to annoy, embarrass or frustrate him.
Usually the interviewer in such circumstances asks questions rapidly, criticizes the
interviewees answers interrupts him frequently, keeps the candidate waiting indefinitely
and then subjects him to interrogation, questioning whatever he might state or too many
questions are asked at a time by many interviewers etc. The purpose is to find out how a
candidate behaves in a stress situation, whether he bases his temper, gets confused
frightens.
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For most candidates undergoing an interview, means considerable mental and emotional
strain but display of people understanding and sympathy on part of interviewer may
considerably relieve such tension. The candidate should also be provided with all
necessary facilities and comfort so as to put her at ease. The interviewer should not
interrupt candidate in any way and should patiently listen to her answers
After interview is over and candidate has left the room, interviewer/s should quickly
glance through their notes and bring to mid their impression about the candidate so as to
make a provisional assessment of her/his performance. It is only after this that the next
candidate should be called in
Interview tips
Prepare for the interview i.e. room and panelists
One of the interviewers preferably the departmental manager should bring the
candidate to the room and do the introduction
It is the duty of the HR manager to reduce the anxiety of the candidate by asking
simple questions not related to the interview
Continue in the same vein and ask questions related to the job
Use open ended questions rather than closed ended questions
Encourage the person to talk using:
Playback techniques – i.e. repeat, last few words
Use of rewords i.e. using the head movements, eyes
Use of silence
Use of probe/research questions
Summarizing before asking the next question
Don’t talk too much
Sell the job to the candidate
Control the interview
When sufficient information has been sought close the interview
Reference checks are validations that provide additional insight into the information
furnished by the applicant and allow verification of its accuracy. In fact applicants are
often required to submit the names of several references that can provide additional
information about them. Most organizations place more emphasis on professional
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references included in background investigations. Background investigations involve
obtaining data from various sources, including previous employers and business
associates. These professional references and academic institutions are a valuable source
of information about applicants. The principal reason for conducting background
investigation is to hire better workers. However, there are other critical reasons as well.
The intensity of background investigations depends on the nature of the open position’s
tasks and its relationship to customers and clients. To be legally safe, employers should
ask applicants to sign a liability waiver permitting a background investigation. A
comprehensive waiver releases former employers, business references and others from
liability. The waiver can also authorize checks of court records and the verification of the
applicant’s educational history and other credentials. The employer should fully
document the results of all reference and background checks. The high incidence of
credential fraud provides a compelling reason for firms to conduct background
investigations. Small firms may not possess the staff to screen backgrounds of
prospective employees thoroughly. Even large organizations may prefer to utilize the
specialized services of professional screening firms. Firms can outsource their
background checking duties to a handful of third party investigators. Regardless of how
they are accomplished, background investigations have become increasingly important in
making sound selection decisions and avoiding charges of negligent hiring and retention.
The investigations may provide information critical to selection decisions since firms can
verify virtually every qualification an applicant lists. Some common terms in relation to
reference checks include;
Negligent hiring- the liability an employer incurs when it fails to conduct a reasonable
investigation of an applicant’s background and then assigns a potentially dangerous
person to a position where he or she can inflict harm.
Negligent retention- when a company keeps persons on the payroll whose records
indicate strong potential for wrongdoing and fails to take steps to defuse a possible
violent situation.
Negligent referral- when a former employer fails to offer a warning about a particularly
severe problem with a past employee.
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indicated that most people can accept losing if they lose fairly. Problems occur when the
selection process appears to be less than objective. It is therefore important for firms to
develop and utilize rational selection tools. Increasingly, time constraints prevent firms
from spending much time explaining a decision to an unsuccessful candidate. A rejection
letter is a more likely method. However, a letter with a personal touch may reduce the
stigma of rejection and avoid the applicant’s having a negative feeling about the
company.
All medical exams must be directly relevant to the job requirements and that a firm
cannot order a medical exam until the applicant is offered employment. Typically a job
offer is contingent on the applicant’s passing of this examination. The basic purpose of
the medical examination is to determine whether an applicant is physically capable of
performing the work.
Placement
This is determination of the job to which the accepted candidate is to be assigned and his
actual assignment to that job. A proper placement of a worker reduces employee
turnover, absenteeism and accidental rates as well as improving morale.
ii) A candidate should be placed on the job according to the job requirement
iii) A job should be offered to candidates who have required qualifications and
experience
iv) At the time of placement, candidate should be educated about the job, working
conditions, target output, expectations of job etc
Note: placement manager should help to develop a sense of loyalty and cooperation in the
employees so that they perform better and contribute to the effective realization of
organizational goals.
INDUCTION
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Induction is the process of receiving and welcoming employees when they first join a
company and giving them the basic information they need to settle down quickly and
happily and start work. Induction has four aims:
Importance of Induction
2. Increasing Commitment
A committed employee is one who identifies with the organization, wants to stay with it
and is prepared to work hard on behalf of the organization. The first step in achieving
commitment is to present the organization as one that is worth working for and to ensure
that this first impression is reinforced during the first weeks of employment.
Consists of implicit, unwritten beliefs and assumptions about how employees are
expected to behave and what responses they can expect from their employer. It is
concerned with norms, values and attitudes. The psychological contract provides the
basis for the employment relationship, and the more this can be clarified from the outset,
the better. Induction arrangements can indicate what the organization expects in terms of
behavioural norms and the values that employees should uphold. Induction provides an
opportunity to inform people of the way things are done so that misapprehensions are
reduced even if they cannot be eliminated.
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New employees will be on a learning curve – they will take time to reach the required
level of performance. Clearly, the length of the learning curve and rates of learning vary,
but it is important to provide for it to take place in a planned and systematic manner from
the first day to maximize individual contributions as quickly as possible.
5. Socialization
New employees are likely to settle in more quickly and enjoy working for the
organization if the process of socialization takes place smoothly. The social aspects of
work (relationships with colleagues) are very important for many people. The extent to
which employees can directly influence the quality of socialization may often be limited,
but it is a feature of introduction to the organization to which they should pay attention as
far as this is possible, during the induction arrangements.
INDUCTION ACTIVITIES
1. Reception
Most people suffer from some feelings of anxiety when they start a new job.
General fears may be alleviated by ensuring that the first contacts are friendly and
helpful.
Ensure that the person whom the new employee first meets (ie. the receptionist,
personnel assistant or supervisor) knows of their pending arrival and what to do
next.
Set a reporting time, which will avoid the risk of the starter turning up before the
reception or office staff arrive.
Train reception staff in the need for friendly and efficient helpfulness towards the
new employee.
If the new employee has to go to another location immediately after reporting,
provide a guide, unless the route to the other location is very straightforward.
Avoid keeping the new employee waiting without knowing what to do next.
2. Documentation
A variety of documents may be issued to new employees, including safety rules and
safety literature, a company rule book containing details of disciplinary and grievance
procedures and an employee handbook.
An employee handbook is useful for this purpose. It should convey clearly and simply
what new staff needs to know;
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A brief description of the company – its history, products, organization and
management;
Basic conditions of employment – hours of work, holidays, pension scheme,
insurance;
Pay – pay schemes, when paid and how, deductions, queries;
Sickness – notification of absence, certificates, pay;
Leave of absence;
Company rules;
Disciplinary procedure;
Capability procedure;
Grievance procedure;
Promotion procedure;
Union and joint consultation arrangements;
Education and training facilities;
Health and safety arrangements;
Medical and first-aid facilities;
Restaurant and canteen facilities;
Social and welfare arrangements;
Telephone calls and correspondence;
Rules for using email;
Traveling and subsistence expenses
3. Company induction – initial briefing
Company induction procedures, however, should not rely on the printed word. The
member of the personnel department or other individual who is looking after new
employees should run through the main points with each individual or, when larger
numbers are being taken on, with groups of people. In this way, a more personal touch is
provided and queries can be answered.
When the initial briefing has completed, new employees should be taken to their place of
work and introduced to their manager or team leader for the departmental induction
programme. Alternatively, they may go straight to a training school and join the
department later.
New employees will be concerned about who they are going to work for (their immediate
manager or team leader), who they are going to work with, what work they are going to
do on their first day, and the geographical layout of their place of work (location of
entrances, exists, lavatories, restrooms and the canteen).
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The departmental induction programme should, wherever possible, start with the
departmental manager, not the immediate team leader. The manager may give only a
general welcome and a brief description of the work of the department before handing
new employees over to their team leaders for the more detailed induction. But it is
important for the manager to be involved at this stage.
The detailed induction is probably best carried out by the immediate team leader, who
should have five main aims:
The team leader should introduce new employees to their fellow team members. It is best
to get one member of the team to act as a guide.
Arrangements
Decisions will have to be made about who attends the induction course and when. It is
normal to mix people from different departments but less common to have people from
widely different levels on the same course. In practice, managers and senior professional
staff are often dealt with individually.
Ideally, induction courses should take place as soon as possible after starting, if there are
sufficient new employees available, this could be half the first day or a half or whole day
during the first week. If a lot of information is to be conveyed, supplementary half or
one-day courses may be held later. However, the course may have to be delayed until
sufficient numbers of new employees are available. If such delays are unavoidable, it is
essential to ensure that key information is provided on the first day by personnel and the
departmental supervisor. Organizations with branches or a number of different locations
often hold formal induction courses at headquarters, which helps employees to feel that
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they are part of the total business and gives an opportunity to convey information about
the role of head office.
Content
The content of formal induction courses may be selected according to the needs of the
organization from the following list of subject areas:
Information about the organization – its products/services, structure, mission and core
values;
Learning arrangements and opportunities – formal training, self-managed learning,
personal development plans;
Performance management processes – how they work and the parts people play;
Health and safety – occupational health, prevention of injuries and accidents,
protective clothing, basic safety rules;
Conditions of service – hours, holidays, leave, sick pay arrangements,
maternity/paternity leave;
Pay and benefits – arrangements for paying salaries or wages, the pay structure,
allowances, details of performance, competence or skill based pay schemes, details of
profit sharing, gain sharing or share ownership arrangements, pension and life or
medical insurance schemes;
Policies, procedures and working arrangements – equal opportunities policies, rules
regarding sexual and racial harassment and bullying, disciplinary and grievance
procedures, no-smoking arrangements;
Trade unions and employee involvement – trade union membership and recognition,
consultative systems, agreements, suggestion schemes.
Most new employees other than those on formal training schemes will learn on the job,
although this may be supplemented with special off-the-job courses to develop particular
skills or knowledge. On-the-job training can be haphazard, inefficient and wasteful. A
planned, systematic approach is very desirable. This can incorporate:
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TRAINING AND DEVELOPMENT
Training is the process of raising knowledge and skills of an employee for doing
particular jobs. It is organized activity designed to create a change in the thinking and
behaviour of people and to enable them to do their jobs in a more efficient manner.
Purpose of Training
1. It enables the employees to get acquainted with their present or prospective jobs and
raise their knowledge and skills
2. Makes old employees familiar with new machines and techniques by refreshing their
knowledge
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Difference between Training and Development
Very often training and development are considered as synonymous but there is a
difference between the two.
1. Training implies the act of raising knowledge and skills required for efficient
performance of a particular job. Development means growth of an individual in all
respects.
2. Training is largely job centered while development is career bound. Training is meant
for employees
Even where a worker is well trained for job to be assigned to him, he needs to be given
some special training consistent with specialized job requirements of organization. The
type of training imparted in vocational school is of a general nature hence needs to be
supplemented with a special training peculiar to each job.
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learning new methods, one has to keep running even to remain at the same level of
proficiency.
4. Job satisfaction
Training gives employee confidence in handling the job assigned to him. It enables him
to achieve level of performance required by job to be handled by him. It instills self
confidence and boosts morale of employee which makes him more productive and
committed to organizational goals.
Training helps employee to raise quantity and quality of his output through improvement
in work methods and skills
6. Fewer accidents
Training helps in reducing number of accidents and breakdowns. A person who has learnt
how to do a job even before he is put on it will handle machines move competently than
untrained person.
It reduces spoilage rate and wastage of material. This is because it makes a substantial
raise in skills such that even in the midst of vast changing technology, workers do not go
out of touch with modern machines
A trained worker never complains about his work or their machines and tools given to
him to perform it. Only untrained worker may do so.
Trained workers develop sharper reflexes and a greater capacity for diagnosis and
analysis of day to day problems. They need not rush to supervisor every now and then for
advice to solve routine problems. This considerably reduces the work load of supervisors
who can practice management by exception and devote the time and energy to tackling
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larger and move important issues. An organization having trained workers will not have a
problem of shortage of personnel. Temporary or permanent absence of a few workers will
not make any difference to normal functioning of the organization or firm.
Raising complexity of organization has led to interpersonal and inter group problems due
to loss of contact between management and employees. Proper human relations training
of which many new techniques have been developed can help in overcoming such
problems
Training is a mean to raise effectiveness of employee in their present job and to prepare
them for promotion to position with greater responsibilities. It should therefore be related
to needs of organization and employees concerned. The organization will need trained
personnel when it seeks to diversify its product line necessitating introduction of new
technology or because it wishes to create jobs calling for specialized training. Identifying
training needs of employees of any organization a 3 step approach is undertaken
according to McGhee and Thay;
Organizational Analysis
This consists of identifying the areas where training of employees is called for. Employee
training needs will depend on objectives organization structure, existing personnel and
future plans of organization. This will highlight what activities will be undertaken by
organization and whether employees with their existing skills would be able to perform
them efficiently. In case there is any deficiency in skill levels in any department, suitable
steps could be taken e.g. realignment of organization. Greater decentralization,
recruitment of trained personnel etc
Task Analysis
This calls for detailed examination of each job, activities to be performed to accomplish
required standards and working conditions under which it is to be performed. This will
indicate what kind of jobs are performed and what types of employees will be able to
perform them
Worker analysis
This analyses skills, abilities and what kind of training and development facilities that
each employee requires to enable him to perform better. The ideal way to identify such
needs is to observe employees at work interview with individual employees, their
supervisors and colleagues and past records techniques.
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ON THE JOB TRAINING METHODS
1. Orientation/induction training
This is meant for new employee and its objective its to adopt them to specialized job
requirements and work methods of the organization. In this training, new employee is
given a job description and also provides with a set of policies, rules and procedures
which have bearing on his performance as an employee. He is also told who his superiors
and subordinates are
2. Apprenticeship training
3. Delegation
Promotion or transfer in the case of an employee may cause a significant change in the
nature of his duties and responsibilities. While its true that an employee must be properly
trained before he is promoted or transferred to a new job, it may sometime be risky to try
out a promotion or transfer as a means of training because in such a ease, its bound to be
temporary affair so long as employee concerned does not satisfactorily establish his in
credentials for the new job.
5. Refresher training/retraining
Rapid technological and scientific can make employees obsolete in course of time. This is
because, with change in technologies and work methods, job requirements also change.
Therefore even those employees are adequately qualified have to undergo training in the
use of new methods and techniques. Refresher training enables employees to refresh their
memory of things they learnt a long time ago.
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6. Vestibule training
The word vestibule means a passage or room between outer door and interior of a
building. It means training organized in a school or in an industrial plant to train new
workers in specific skills so as to prepare them to handle their jobs. It is introduced when
number of workers to be trained is large, when volume of training is enormous and line
supervisor because of heavy responsibilities is not in a position to spare time to attend to
training.
7. Job rotation
May be vertical in which case. It is the same as promotion a horizontal in which case it
may be called transfer. The objective of job rotation is employee development through
provision of diversified training. It may take different forms e.g. employee selected for
training, may be assigned jobs after the other in different departments. Each such shifting
assignments is to train employee in work procedures of different departments. Another
form of job rotation requires selected employee to observe work of different departmental
heads. Here employee himself does not do anything in department to which he is sent. He
just observe how various department heads perform their functions.
To broaden outlook of trainee and to prepare him for wider managerial responsibilities he
may be posted as an assistant to different department heads. Objective of this is to enable
trainee to acquire actual managerial experience in each department of organizational. In
this task he is helped by superior who assigns trainee duties according to his abilities and
skills and he is always available to offer advice and guidance
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Disadvantages
This takes place away from normal work situation usually employing specially
simplified tools and equipment. It may take place on employer’s premises at training
centre or at a college. They include
In western countries, bed personnel including those belonging to managerial cadres are
generally better educated but not as well as those in other distinguished profession such
as law, accounting etc. However, during last few decades a great deal of attention has
been given to equipping the bed personnel in various tasks handled by them at their place
of work. In Kenya personnel belonging to older generation are generally without any
formal education or training in their respective fields. However after independence there
has been considerable growth in number of institutions imparting technical and other
training that equips managerial and technical personnel with the skills they require for
their respective jobs.
Lecture courses may be used to impart knowledge as also develop analytical abilities
among workers. Large organization may employ qualified and trained persons to conduct
specific lecture courses suited to needs of different categories of workers. However, small
organization which can’t afford such expenditure can avail the services of experts
employed by educational and other professional bodies for such lecture courses.
Conferences provided occasion for formal interchange of views among employees of
different organization. Proposals or ideas developed by various speakers are thrown open
for discussion among participants and consensus is reached taking into account the
various view points expressed. Seminars and workshops provided by educational
institution and professional bodies may also be of great help in training bed personnel.
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3. Case study
The factors that are immediately affecting problem situation at hand are comprehensively
studied because it may not be possible to make detailed study of all aspects of any
organizational situation. Discussion of a case is generally n groups. Each member is
asked to present his analysis suggest alternative solution and offer comments on analysis
by others. Since there can’t be an ideal solution to any problem, group discussion can be
quite stimulating with each member trumpeting his own analysis and trying to find
loopholes in alternatives offered by others. Case study aims to develop analytical abilities
hence facilitating decision making.
4. Role playing
It is a training method under which participants assume certain roles and enact them
spontaneously in classroom condition. It lends to emphasize feelings and relationship
between people. In a role playing sessions, participants are assigned the votes by turns,
while 2 or more trainees enact roles assigned to them others act as observers and critics.
As a training technique it enables participants to broaden their experience by trying
alternative approaches to a problematic situation.
5. Management games
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6. Brain storming
This is a problem solving technique which consists of evaluation of ideas put forward by
group of people who are convened especially for this purpose. It facilitates a pooling of
knowledge and experience of different people who are experts in their respectful fields
with a view to solving complex problem. It therefore enables a problem situation to be
looked at from different points of view making it easier to find an optimum solution.
Disadvantages
PERFORMANCE MANAGEMENT
Definition
This means the integration of employee development with results based assessment. It
encompasses performance appraisal, objective setting for individuals and departments,
appropriate training programmes and performance related pay. Performance management
emphasis development and the initiation of self-managed learning plans as well as the
integration of individual and corporate objectives.
PERFORMANCE APPRAISAL
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1. GOAL - SETTING OR MANAGEMENT BY OBJECTIVES
This is more commonly used with professional and managerial employees. Other
terminologies used for this include; management by results, performance management,
results management and work planning and review programmes.
a) Establishing clear and precisely defined statements of objectives for the work to
be done by an employee.
b) Developing an action plan indicating how these objectives are to be achieved.
c) Allowing the employee to implementing the action plan
d) Measuring objective achievement
e) Taking corrective action when necessary
f) Establishing objectives for the future.
3. RANKING METHODS.
The core element of the use of rankings is that employees are compared to each other,
and given some number that supposedly indicates whether they are better than, about the
same or less effective than their colleagues. It is used to determine who will get a pay
rise from a limited resource pool, or for other decision-making processes. In ranking
methods, especially the simplest form, the supervisor lists all subordinates in order, from
the highest to the lowest in performance.
4. RATING SCALES
A. GRAPHIC RATING-SCALE
With this method, the rater assesses an employee on factors such as quantity of work,
dependability, job knowledge, attendance, accuracy of work and cooperativeness.
Graphic rating scales include both numerical ranges and written descriptions.
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5. WORK STANDARDS APPRAISAL APPROACH
This approach is used most frequently for production workers, and is basically a form of
goal setting for these employees. It involves setting a standard or an expected level of
output and then comparing each employee’s performance to the standard. Work standards
should reflect the average output of a typical employee. Work standards attempt to define
a fair days work.
6. ESSAY APPROACH
This requires that the evaluator describe an employee’s performance in written narrative
from. A typical essay appraisal question might be “Describe, in your own words, this
employee’s performance, including quantity and quality of work, job knowledge and
ability to get along with other employees. What are the employees strengths and
weaknesses?’
8. THE CHECKLIST
In the checklist method, the rater makes yes-or-no responses to a series of questions
concerning the employee’s behaviour. The checklist can also have varying weights
assigned to each question.
YES
NO
i) Does the employee lose his or her temper in public? - -
ii) Does the employee play favourites? -
-
iii) Does the employee praise employees in public when they have done a good job? - -
iv) Does the employee volunteer to do special jobs? - -
9. ASSESSMENT CENTRES
This is a special form of appraisal intended to identify potential for promotion. It consists
of a series of exercises such as leaderless group discussions, role-playing, business games
and ten-minute speeches. A group of candidates is brought together at a fairly isolated
spot where they go through the exercises over a period of one to three days. They are
judged by assessors who are usually managers of the company who have received
appropriate training.
There are many possible sources of errors in the performance appraisal process. One of
the major sources is mistakes made by the rater. There is no simple way to eliminate
these errors, but making raters aware of them is helpful. The most common errors
committed in performance appraisal include: the halo effect; leniency; strictness; the
central tendency error; the recency effect; and the contrast error.
The halo effect occurs when a manager rates an employee high on all items because of
one characteristic. For example, if a worker has few absences, her supervisor might give
her a high rating in all other areas of work, including quantity and quality of output,
because of her dependability. The manager may not really think about the employee's
other characteristics separately. The opposite of a halo error is a horn error, where
negative performance in one-dimension influences any positive aspects of the employee's
performance.
An appraisal that shows the same rating on all characteristics may be evidence of the halo
or horn effect. Clearly specifying the categories to be rated, rating all employees on one
characteristic at a time, and training raters to recognise the problem are some means of
reducing the halo and horn effects.
A second common and often intended rating error is called leniency error - or the process
of being 'too easy'. Leniency bias may exist because supervisors are concerned about
damaging a good working relationship by giving an unfavourable rating. Or they may
wish to avoid giving negative feedback, which is often unpleasant, so they inflate the
ratings.
At the opposite extreme of leniency is the error of strictness in which ratees are give
unfavourable ratings regardless of performance level. Raters with low self-esteem or
raters who have personally received a low rating are most likely to rate strictly. Rater
training, which includes reversal of supervisor subordinate roles and confidence building,
will reduce this error.
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4. The Central Tendency Error
Rather than using extremes in ratings, there is a tendency on the part of some raters to
evaluate all ratees as average even when performance actually varies. This bias is referred
to as the error of central tendency. Raters with large spans of control and little
opportunity to observe behaviour are likely to rate the majority of employees in the
middle of the scale, rather than too high or too low. This is a 'play-it-safe' strategy.
Central tendency can also be a by-product of the rating method. The forced-distribution
format requires the most employees be rated 'average'.
As the typical appraisal period [six months to a year] is far too long for any rater to
adequately remember all performance-relevant information. As the appraisal interview
draws near, the rater searches for information cues as to the value of performance.
Unfortunately, recent behaviours or outputs are more salient. As a result, recent events
are weighted more heavily than they should be. Called the recency of events error, this
bias can have serious consequences for a ratee who performs well for six months or a
year but then makes a serious or costly error in the last week or two before evaluations
are made.
Employees and managers can minimise this error by keeping ongoing behavioural or
critical incident files in which good and poor behaviours and outputs are recorded.
Although time consuming, they ensure that information for the entire period is
incorporated into the appraisal.
Rating should be done on the basis of standards that are established before the rating. The
contrast error is the tendency to rate people relative to other people rather than to
performance standards. For example, if everyone else in a group is doing a mediocre job,
a person performing somewhat better may be rated as excellent because of the contrast
effect.
But in a group performing well, the same person might have received only a poor rating.
Although it may be appropriate to compare people at times, the rating should reflect
performance against job requirements, not against other people.
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COMPENSATION
REMUNERATION PACKAGE
Introduction
Compensation and pay are not synonymous terms. Compensation or remuneration refers
to all the extrinsic rewards employees receive in exchange for their work. Pay refers only
to the actual shilling, dollar, pound that employees receive in exchange for their work.
Usually compensation is seen as consisting of the base wage or salary, any incentives or
bonuses and any benefits.
Incentives are rewards offered in addition to the base wage or salary and are usually
directly related to performance. Benefits are rewards employees receive as a result of
their employment and position with the organization.
A reward system consists of financial rewards (fixed and variable pay) and employee
benefits, which together comprise total remuneration. Total remuneration is the value of
all cash payments (total earnings) and benefits received by employees.
Basic Salary
This is the major component of employment compensation package. Basic salary is
worked out on the basis of job evaluation, and is adjusted either because of
reclassification or changes in the cost of living index. Basic salary is a range with top and
base clearly defined.
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Basic salary is the fixed salary or wage, which constitutes the rate for the job. For manual
workers it may be referred to as time or day rate. It may provide the platform for
determining additional payments related to performance, competence or skill. It may also
govern pension entitlements and life insurance when they are related to pay.
The base rate for a job is regarded as the rate for a competent or skilled person in a job.
The basic levels of pay for jobs reflect both internal and external relativities
Internal relativities may be measured by some form of job evaluation, which places jobs
in a hierarchy. External relativities are assessed by tracking down market rates. Pay
levels may also be agreed upon via negotiations i.e. CBA’s or by individual agreements.
In many organizations pay rates are fixed by managerial judgment of what is required to
recruit and retain people. The rates may get adjusted due to individual or collective
pressures for increases or upgrading.
The base pay may be expressed as an annual, weekly or hourly rates and may be adjusted
to reflect increases in the cost of living, market rates, agreement with unions or
unilaterally by the management.
Allowances
Some of the well-known allowances include; house rent, travel allowance, daily
allowance, hardship allowance, shift allowance, and so on. The concept of allowance is
based on the cost of living index and are meant to compensate for the extra efforts needed
for one to perform normal duties. Allowances can be added to the basic pay depending
upon the contingencies of the job. The exact quantum of most allowances is usually
linked to the basic salary as they present a percentage of the basic.
Bonus
This is a reward for good performance, which is paid in lump sum related to the results
obtained by individuals, teams or the organization. Bonus is seen as profit sharing and
focuses on improving productivity for both employer and employee.
Perquisites
Perks are those benefits that do not usually come in the form of cash but are provided to
maintain certain needs and status of the employee, and image of the organization. These
may include perks such as stock options, club membership, car or housing loans,
reimbursement of the cost of children’s education, paid holidays, generous medical
benefits, furnishing of residence and many others.
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Incentives
These are payments linked to the achievement of previously set targets, which are
designed to motivate people to achieve higher levels of performance. Targets are usually
quantified as output, sales and so on.
Commission
A special form of incentive in which payments to sales representatives are made on the
basis of a percentage of the sales value they generate
Definition of terms
a) Wages
A wage is remuneration paid to labour engaged in production. The term wages refer to
hourly rate paid to blue collar workers e.g. production and maintenance employees
b) Salaries
The term salary refers to weekly or monthly remuneration paid to white collar workers
e.g. clerical administrative and professional employees
d) Wage levels
e) Wage structure
This is money received by any employee for performing assigned tasks which also
includes benefits
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This is wage rate that is forced according to awards and judicial pronouncements of
industrial tribunal and labour courts
i) Living wage
this is wage which should enable the earner to provide for himself and his family not only
the basic essentials of food, clothing and shelter but a measure of comfort including
education, protection, against illness requirements of essential social needs and measures
of insurance against more important misfortunes including old age. It is the highest
remuneration provided for employee to maintain a reasobnaly good standard of living
Fair wage
This is wage which is above minimum wage and below the living wage
The labour market, like all other markets has buyers (employers) and seller (employees).
It is in the external market that the economic determinants of pay levels operate. Pay
levels in the labour markets are determined by supply and demand considerations. If
supply exceeds demand the pay levels go down; if demand for labour exceeds supply at
the market clearing or market equilibrium wage. This is known as the theory of
equalizing differences.
In the internal market, the firm, pay progression may relate to the length of service and an
annuity approach to apply increments (i.e. pay that goes up but does not come down – the
sticky wage) and this may lead to higher internal rates. Pay in the internal market will
also be affected by decisions on which individuals should be rewarded for their particular
contribution, specialized expertise, irrespective of the market rate for their job.
The internal and external labour markets are concerned with, apart from supply and
demand, the efficiency wage theory, human capital theory and agency theory.
The efficiency wage theory, proposes that firms will pay more than the market rates since
they believe high levels of pay contribute to increase in productivity by motivating the
worker, attracting better candidates, reducing turnover and persuading workers that they
are treated fairly. The theory is also known as the ‘Economy of high wages’.
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The Human Capital theory, states that investment in people adds to their value to the
firm. The theory encourages the use of skill-based or competence related pay as a method
of reward.
It also advocates the concept of individual market worth-that individuals have their own
value in the market place which they acquire and increase through investments by their
employer and themselves in gaining extra expertise and competence through training,
developments and experience. Their market rate may be higher than the market rate for
their jobs, and if not rewarded accordingly, they may market their talents elsewhere.
Organizations vary in their ability to meet their wage and salary commitments. Those,
which have profitability and have a good cash flow, find it easier to be generous. Those
that are struggling find it hard to meet even their minimum obligations.
iii) Comparability.
Pay levels will be determined by internal and external comparability. The remuneration
paid out should be comparatively fair to what other jobs are getting in the organisation
and outside.
The ability of the trade union to influence pay decisions depends very much on its
bargaining power. If the employer’s need for labour is desperate, or the skill required
scarce, then the unions strength will be strong and may be enough to divert financial
resources elsewhere to resent wage and salary demands. Where labour is plentiful or the
organization is reducing its labour force via redundancies, the union strength is at its
weakest.
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vi) Government action/legislation.
These affect remuneration through; taxation and government policies on wages and
employment. The higher the salary the more the taxation. Tax exemptions also affect
remuneration. Wage guidelines set by the government state what are the minimum wages
for employees. The upper limit is at the discretion of the employer. Some employers
use this guideline to deny workers more remuneration. Government has relied on fiscal
measures (taxation, interest rates, and exchange rates) to influence wage rates.
vii) Productivity.
Productivity of the company and the economy in general will have a bearing on the levels
of salaries to be given to employees. Highly productive companies remunerate their
workers well and the opposite is true. As long as there are markets (i.e. buyers) for goods
and services, it is the efficiency with which these items are produced that determines
whether prosperity can be received. Higher wages are possible to apply if there are
improvements in productivity – improved output in relations to inputs.
x) Individual’s performance.
This is practiced where pay is tied to performance (performance related pay) and allows
for increment based on performance.
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market rates. Such policies may be based on the need to attract and retain the best,
achieve internal consistencies in pay, pay and performance and external consistencies.
INDUSTRIAL RELATIONS
Trade unions
Definition by scholars
2. G.D.H. Cole
3. Edwin B. Flippo
4. Cunnison
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To restrain management in showing favoritism in the assignment of duties and
responsibilities, transfers, promotions, and maintenance of discipline in some corners
at cost of other units. Also in issues of layoffs, retirements, rewards and punishment
so that there is no bias in all these aspects
To fall inline with other workers in a better way and to gain respect in the eyes of
their peers
Secure protection from economic hazard beyond their control e.g. accidents, death,
unemployment, old age etc
To communicate their aims, ideas, feelings, views, dissolutions, frustrations and
dissatisfaction with management and organizations
To get a job through good offices of trade unions
Management is not allowed to join trade unions. Also the wage earner does not join trade
unions as their employment is for a short time. Thus trade union is only for the
unionizable members (salary earners)
Although each union is a unique organization seeking it own objectives, several board
objectives characteristic the union movement as a whole. These include:
1. To secure and if possible improve living standard and economic status of its members
2. To enhance and if possible guarantee individual security against threats and
contingencies that might result from market fluctuations, technological change or
management decisions
3. To influence power relations in social system in ways that favour and do not threaten
union gains or goals
4. To advance the welfare of all employees who work for a living whether union
members or not
5. create mechanisms to guard against the use of arbitrary and inhuman policies and
practices in work place
How trade unions achieve their objectives through the following methods:
These negotiations deal with salaries, wages, hours of work, terms and conditions of
employment, personal and job security, employee benefits and services, medical care,
retirement benefits etc
b) Collective bargaining
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A trade union should see that a proper grievance processing and reddressal procedures is
existing within the organization and as soon as grievance reaches C.E.O it’s dealt with
satisfactorily
d) Arbitration
Mutual insurance through common contribution is another way to achieve the union
objectives especially regarding financial needs of workers when there is stoppage of work
e.g. due to strikes
f) Political pressure
This is another source with help of which pressure is exercised through legislators who
are capable of bringing about changes in labour laws
g) Recruitment
Through a special arrangement, a trade union may exercise some control over hiring,
supervision and discharge of workers
Collective Bargaining
1. Distributive bargaining
This is a straight out haggling, over the disturbance of a pie. Here, economic issues like
wages and salaries and remuneration are, discussed. Under distributive bargaining one
party’s gain is another party’s loss
2. Integrative bargaining
This is a negotiation of an issue on which both parties may gain or at least neither one
looses. Discussion over a better job evaluation system or better training employees are
e.g. of integrative bargaining win-win/loss-loss situation
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3. Attitudinal structuring
Here, some attitudes like trust or distrust, friendliness or hostility between labour and
management are shaped and reshaped. When there is a back log of bitterness between
both parties, industrial relations could not be smooth and harmonious. Collective
bargaining in terms of attitudinal structuring is called for in this case
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Cause an employer to discriminate in any way against an employee in order to
encourage or discourage his or her membership in an union ( except in closed or
union shop)
• Refuse to bargain in good faith with the employer about wages, hours and other
employment conditions.
• Certain strikes and boycotts are also unfair practices
Employees authority to make any subtraction of union dues from his/her pay
cheque
Nominate candidates for union office
Psychologists, social scientists, sociologists and industrial engineers are nowadays move
concerned with employee health and safety because they have realized that health
employee is a productive employee
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Psychologists are concerned with theoretical considerations of accidents, their causes,
ways of controlling and preventing accidents through proper selective placement and
training of the employees on the industrial organizations
Engineers and safety officers are primarily concerned with rendering suitable and
necessary advice to employees and executive regarding maintenance of health and safety
of employees
The importance of accident prevention and safety has risen in the recent past because
modern industrial workers are subject to the mechanical, chemical, electrical and
radiation hazards
Employee safety
Deals with safety hazards aspects of work environment that have the potential of
causing immediate and sometimes violent harm or even death
Employee health deals with health hazards – aspects of work environment that
slowly and cumulatively (often irreversible) lead to deterioration of health
The person may develop chronic or life threatening illness or become
permanently disabled
Typical causes are physical and biological hazards, toxic and carcinogen dust and
chemical, stressful work conditions; these can cause cancer, heavy metal and
other poisoning respiratory disease, cyclonical disorders like depression
Industrial accidents
Causes of accidents
The nature and causes of accidents vary from industry to industry e.g. in construction
industry, accidents may be seen in terms of falling employee form a height while engage
in construction work. Coal rocks may fall on employee is drilling in coal mine. An
employee may be electrocuted on a plant due to short circuit etc
Work-related causes
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1. Unsafe and defective equipment
2. Hazardous arrangements or procedure in or around the machines and equipment
3. Inadequate safety devices
4. Improper lighting
5. Poor house keeping
6. Improper/inadequate ventilation/air pollution
7. Improperly guarded equipment
8. unsafe storage, congestion, overloading etc
NOTE: unsafe equipment and machinery accounts for more than 1/3 of industrial
accidents and hence these are labeled as high risk zones for accidents
Unsafe acts
Accidents may be also result of unsafe acts on the part of employees. Lack of knowledge
or skill in handling the equipment, physical incapacities, and wrong acts of employees
result on industrial accidents. These unsafe acts include:
Psychological causes
Accidents normally occur during closing hours of the work. This is because workers got
fatigue at the widening up hours of the day and in the process make mistakes.
Psychological factors e.g. fatigue, anxiety, tiredness, overwork, monotony, boredom, lack
of self confidence, frustrations etc may also cause industrial accidents
Environmental causes
Accidents may arise out of unsafe situational or environmental conditions. These include
Slippery floors
Rough floors
Fumes etc
Excessive lights
Humidity
Dust
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Safety programme
To prevent industrial accidents and to ensure employee safety, almost every employer
should launch a safety programme considering the following points:
Note: In Kenya safety officers are appointed in large organizations. The functions of
safety officer are to
Formulate safety requirements, safety policies
Assess critically safety requirements and standards of company beside organizing
safety education, training and publicity
Occupational Health and Safety Act, 2007 makes some provisions for health, safety and
welfare of persons employed in factories and other places. This Act came into operation
on 1st September 1951.
Occupational Health and Safety Act, 2007 makes detailed provisions in regard to various
matters relating to health, safety and welfare of workers. These provisions impose upon
the occupiers or managers certain obligations in order to;
Part IV of the Act deals with the provisions ensuring the health of workers in the
conditions under which work is carried on in factories. These provisions are as follows;
Cleanliness (Section 13) – Every factory should be kept in a clean state, and free from
stench arising from any drain, sanitary convenience or other nuisance. Accumulation of
dirt and refuse shall be removed daily by some effective method. The floor of every work
room shall be cleaned at least once in every week by washing or by any other method. All
inside walls, partitions, ceilings, stair cases to be washed at least once in every period of
one year or 5 years if they are kept painted with oil paint or varnished.
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Overcrowding (Section 14) – There shall be no overcrowding in any room of the factory
so as to be injurious to the health of the workers employed therein. Every work room
shall not be less than nine feet in height.
Ventilation (Section 15) – Effective and suitable provision shall be made for securing
and maintaining the adequate ventilation of the room for the circulation of fresh air in
each room.
Lighting (Section 16) – Effective provision shall be made for securing and maintaining
sufficient and suitable lighting, whether natural or artificial, in every part of a factory in
which persons are working or passing.
Drainage of floors (Section 17) – Where a floor is liable to become wet in the course of
any manufacturing process to such an extent as is capable of being drained, effective
means of drain shall be provided.
Sanitary conveniences (Section 18) – Sufficient and suitable sanitary conveniences for
the factory workers shall be provided, maintained and kept clean. Separate sanitary
conveniences should be provided for male and female workers and adequately lighted
and ventilated.
Provide a working environment that is free from recognized hazards that are
causing or likely to cause death or serious physical harm to employees and
comply with standards, rules, and regulations
Familiarize yourself and your employees with mandatory health and safety
standards
Examine work place conditions to ensure they conform with applicable standards
Minimize or reduce safety and health hazards
Ensure that employees have and use safety tools and equipment ( including
appropriate personal protective equipment) and that such equipment is properly
maintained
Employ color codes, posters, labels , or signs in several languages to warn
employees of potential hazards
Establish or update operating procedures and communicate them so that
employees follow safety and health requirements
Provide medical examinations for trades required by law
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Rights of the employee
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