DIPLOMA IN PERSONNEL MANAGEMENT/BUSINESS

ADMINISTRATION

HUMAN RESOURCE MANAGEMENT

Course Objectives

This module unit is intended to equip the trainee with knowledge, skill
and attitude that will enable him or her carry out resource management.

By the end of the module the trainee should be able,

 Appreciate the importance of human resource in an

organization.
 Understand the leadership skills in an organization.
 Describe the human resource record.
 Understand wages and salary administration.
 Explain and the recruitment procedure and test used.

Wks Topic Sub topic Reference

1 Introduction  Definition Shaun, T., Alfred, Y. (2000).
 Purpose and Essentials of Human
importance of Resource Management, 4th
human resource edition, Oxford Amsterdam.
management Boston. London
2$3 Evolution of  History of human Shaun, T., Alfred, Y. (2000).
Human resource Essentials of Human
resource management Resource Management, 4th
Management  Distinction edition, Oxford Amsterdam.

between HRM and Boston. London

general
management
4 Manpower  Introduction Shaun, T., Alfred, Y. (2000).
planning  Function of Essentials of Human
 planning Resource Management, 4th
 methods of edition, Oxford Amsterdam.
forecasting Boston. London
 characteristics
of manpower
 job analysis
 job
specification
 job description
6 Job  techniques Shaun, T., Alfred, Y. (2000).
Evaluation  uses Essentials of Human
and Grading  adavantages Resource Management, 4th

and limitations edition, Oxford Amsterdam.

Boston. London
8 Staffing  Introduction Shaun, T., Alfred, Y. (2000).
 Recruitment Essentials of Human

 Selection Resource Management, 4th

process testing edition, Oxford Amsterdam.

 Induction/ Boston. London

orientation
9 Compensatio  Introduction Shaun, T., Alfred, Y. (2000).
n and  Reason for Essentials of Human
motivation paying Resource Management, 4th
employees edition, Oxford Amsterdam.
 Types of wages Boston. London

 Difference
between wages
and salaries
Training and 
development
Performance 
appraisl
Staff welfare 
 policy
Helth and 
safety
Discipline 
and
discharge
Communicati 
on
10 Industrial Introduction Shaun, T., Alfred, Y. (2000).
relations Trade union Essentials of Human
Types of trade union Resource Management, 4th
The roles of trade edition, Oxford Amsterdam.
union Boston. London
Role of
workersin
industrial
Relations
Role of
employer in
industrial
Relations
11 Role of Role of government Shaun, T., Alfred, Y. (2000).
government Kenya Industrial Essentials of Human
in industrial Court Resource Management, 4th
Relations Disputes resolution edition, Oxford Amsterdam.
Boston. London
12 Collective
bargaining
 CHAPTER 1

INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

HUMAN RESOURCE MANNAGEMENT

It is concerned with human side of management of an enterprise and

employee relation with their organization.
It involves the effective use of specialist workforce. It is the planting of
the right persons/people with the right skills , experience and tools at
the right place and at the right time in the organization.
HUMAN RESOURCE
These comprises the skill, knowledge attitudes, Habits and capabilities
that are actually or potentially available for the economic and social
development the community attained through general education
MAN POWER
It refers to persons who have received or are receiving education and
training for specific occupation e.g. Trained English, Account, trained
teacher.
MANAGEMENT
It is not mystery but unfortunately its principles are too often obscured
in verbiage. It is the body of knowledge about managing
Managing- It is the process of planning , organizing , directing , cording
and controlling the 4’Ms man-hour materials , machines and money)
so as to secure optimum achievement of objectives. The following are
thus the function of planning
 Planning
To pre see, look closely to the future and draw programs of actions
 Organizing
Incorporates the materials and organization of the enterprise so that
they are done with less costs time and efforts.
 Coordination
 It ties (unite bring into harmony all action and efforts to ensure that
all facilities and individuals sustain and reinforce each other.
 Directing
Assigns individuals to tasks and trains guides and assist them in
their execution of those tasks
 Controlling
He satisfies himself that all activities are according to plan.

This definition of management

Management is an individual or a group of individuals that accept

responsibilities to run an organization. They Plan, Organize, Direct and
Control all the essential activities of the organization. Management does
not do the work themselves. They motivate others to do the work and co-
ordinate (i.e. bring together) all the work for achieving the objectives of
the organization.

Management brings together all Six Ms i.e. Men and Women, Money,
Machines, Materials, Methods and Markets. They use these resources for
achieving the objectives of the organization such as high sales, maximum
profits, business expansion, etc

Feature of Management.
1. Continuous and never ending process
Management is a Process. It includes four main functions, viz., Planning,
Organizing, Directing and Controlling. The manager has to Plan and
organize all the activities. He had to give proper Directions to his
subordinates. He also has to Control all the activities. The manager has
to perform these functions continuously. Therefore, management is a
continuous and never ending process.
2. Getting things done through people
The managers do not do the work themselves. They get the work done
through the workers. The workers should not be treated like slaves. They
should not be tricked, threatened or forced to do the work. A favorable
work environment should be created and maintained.
3. Multidisciplinary in nature
Management has to get the work done through people. It has to manage
people. This is a very difficult job because different people have different
emotions, feelings, aspirations, etc. Similarly, the same person may have
different emotions at different times. So, management is a very complex
job. Therefore, management uses knowledge from many different
subjects such as Economics, Information Technology, Psychology,
Sociology, etc. Therefore, it is multidisciplinary in nature.
4. A group and not an individual activity
Management is not an individual activity. It is a group activity. It uses
group (employees) efforts to achieve group (owners) objectives. It tries to
satisfy the needs and wants of a group (consumers). Nowadays,
importance is given to the team (group) and not to individuals.
5. Follows established principles or rules
Management follows established principles, such as division of work,
discipline, unity of command, etc. These principles help to prevent and
solve the problems in the organization.
6. Aided but not replaced by computers
Now-a-days, all managers use computers. Computers help the managers
to take accurate decisions. However, computers can only help
management. Computers cannot replace management. This is because
management takes the final responsibility. Thus Management is aided
(helped) but not replaced by computers.
7. Need not be an ownership
In small organizations, management and ownership are one and the
same. However, in large organizations, management is separate from
ownership. The managers are highly qualified professionals who are
hired from outside. The owners are the shareholders of the company.
8. Management is intangible
Management is intangible, i.e. it cannot be seen and touched, but it can
be felt and realized by its results. The success or failure of management
can be judged only by its results. If there is good discipline, good
productivity, good profits, etc., then the management is successful and
vice-versa
MANAGEMENT LEVELS
Using levels managers can be classified into top, middle and first line
managers.
a) First Line Managers
Also called first-level or supervisory management. This is the lowest
management level in an organization. First line managers only direct
operating employees. Examples are Foremen, Office Managers,
Supervisors and Department Managers. These managers are the ones in
the day-to-day contact with operating employees.
b) Middle Managers
These make up the largest group of managers in most companies. Their
positions extend from top management all the way down to those
immediately above first line management. Titles here include Plant
Manager, Division Manager and Operations Manager. They are the
managers who implement the strategies and policies set by top
management and also co-ordinate the work of first-line managers.
c) Top Managers
Top managers are those at the upper levels of the organization. They
comprise of comparatively small groups of executives who are
responsible for the overall management of the organization. They set the
overall organizational goals and determine strategy and operating
policies. They also represent the organization to other external
environments e.g. governments. Titles here may include President, Chief
Executive Officer, Managing Director, General Manager, Chief Secretary
etc.
Revision Question
Explain feature of Management
Name three management levels n an organization

CHAPTER 2

EVOLUTION OF HUMAN RESOURCE MANAGEMENT

HISTORY OF HUMAN RESOURCE MANAGEMENT

In the 1800’s the concept of welfare personnel developed. Welfare
personnel were dealing with employment, sick pay and subsidized
housing for employee.
The introduction of these welfare schemes was as reaction to the
harshness of capitalism during the time of British history.
History personnel contained as a farm until the second world war and
latter manifestations of it were the provision of canteens and
company outings for workers
After second world war, and unto the 1950’s personnel management
incorporated a wide range of services including salary
administration based training and advice on industrial relations as
tactical level rather than unstrategic.
In 1960’s and 70’s saw a significance increase in the ;number of
staff engaged in personnel work. This was due to an increasing in
the amount of employment , legislation the state of the economy had
a part to place.
The emphasis sustained from recruitment (attracting candidates to
select. The reduced volume of negotiations based or collective
bargaining between unions and personals specialists, together with the
reduction in time devoted to recumbent and selection provided
personnel management with opportunities to manage tendency
programmes and enter negotiations to set Lowe wage settlements in a

THE PIONEER

DRUCKER (1955) (PETER DRUCKER)

1. He virtual invented management by objectives (M.B.O) He wrote

that an effective management must direct the vision and efforts of
all managers towards a common goal. He planned personnel managers
for excessive use of techniques and their incapability to get accidents.

Causes of accidents in an organization

Technical causes: This is due to unsafe working conditions such as

improper lighting, poor machines guarding, poor house keeping,
excessive noise, inadequate working space.

Human causes: Due to unsafe act of individual e.g. recklessness,

carelessness, inability to perform the job, lack of training and ignorance.

Cost of Accidents to the organization

 Cost of damage to; machinery, equipment, tools and plant.

 Loss of employee’s morale and community reputation in the
case of serious accidents.
 Cost of supervisors and staff investigating, recording and
reporting the accidents.
  Loss of production cause by the accidents.
 Cost of training a new person to talked their injured
employee’s place.
 The cost of wages paid to the injured employees.

Ways of reducing accidents in the organization

 By doing proper accidents analysis- training.

 Enforcing safety rules at work.
 Ensuring safety education for all levels.
 Formulation of a safety policy that aims at making the place of
work safe in all aspects.

Purpose of keeping personnel in the organization

 For promotion
 For training
 For statistics
 Transfers
 Discplinary matters actions
 For up-to date records
 For reference
 For wage/Salary increments
 Protection of records is through.

Records of the personnel are stored in the following format –

i. index cards
ii. Folders
iii. Envelopes
iv. Diskettes
v. Magnet tapes

WORKERS COMPESATION ACT STATES

 How the employers protect their employees at work

i. Providing safety equipment for the job and ensuring that it is used
in accordance with correct product.
ii. Ensuring that employees do not under take dangerous activities.
iii. Checking if the procedure involved in jobs is safe.
iv. Providing a safe and health environment in which to work
(including adequate light, heat)
v. They carry out assessment of hazards and risks.
vi. They plan and monitor preventive measures.
vii. Ensure that employees have adequate information of the work they
do.
viii. Provided with necessary training.

Factors that influence organization decision to improve staff welfare

schemes.

 Finance of the firm

 The benefit of the schemes to the firm
 Size of the organization
 Interest and hobby of the employees.
 Skills of the organization
 Relationship among the workers.
 Really involved in the business. He referred to personnel
management as a collection of individual techniques without
many resources. Should be regarded as an organization asset,
hues depressingly what latter became the basic philosophy of
HRM

2. MC GREGOR (1960) Theory x and y

He advocated management by integrating and self –control as strategy for

managing people which affect the whole business. He maintained that
the key role of personnel was to device means of getting management
to examine its assumptions to consider the consequences and to
compare it with others. Like Drucker MC Greg also pared ways to basic
HRM concept that human resource plans must be integrated with those
of the business.

The behavioral science movement

This became into prominence in the 1960’s.

Its leading members were

a) Maslow (1954) whose hierarchy of human needs placed self
actualization at the top of the pyramid.
b) Liker (1966) who developed his integrations principle of supporting
relationships. This stated that organization members should in the
light of their values and expectations view their work as supportive
and as combuting to the building and maintain of their sense of
personnel worth and importance.
c) Argyrols (1957) who believed that organization design should pla
n for integration and that they have high degree of self control over
setting their own goals and over the parts defining their goals.
Hertzberg (1957) who advocated job enrichment as a medium of
improving organization effectiveness.
The behavioural science movement contributed to HRM in the following
ways:a) It underlined the importance of integration and involvement.
b) It highlighted the idea that the management should accept as a
basic valued the need to increase the quality of working life as a
means of obtaining better motivation and improved results.

SIMILARITIES BETWEEN HRM AND PM

1. PM strategies like HRM strategies flow from the business strategy.

 2. Pm like HRM recognizes that managers are responsible for
managing people. The personnel function provides the necessary
advice and support services to enable managers to carry out their
responsibilities.
3. The values of PM and at least the management version of HRM
are identical with regard to “respect for the individual” balancing
organizational and individual needs and developing people to achieve
their maximum level of competence , both for their own
satisfaction and facilitate the achievement of organizational
objectives.
4. Both PM and HRM recognize that one of the most essential
process is that of planking the right people in the right jobs thus
ensuring that the organizations human resource are matched to
ever changing organizational requirements.
5. The same range of selection, appraisal, training techniques is used
in HRM attaches importance to the process of communication and
participation within and employee relations.

NEED FOR HRM

The following factors have ked to the creation and popularity of HRM
Increase in competition: improves in a quality and quantity of its
products and services to customers .

 An emphasis on quality of staff and product services.

 Flexible mode of operation.
 Willingness to adapt to changes.
 Need to inject flexibity into the roles of the employees.
 Mult- skilling- adopt a wide range of skills.

ROLES OF HUMAN RESOURCE MANAGER

The following are the key functions /roles of HRM
a) Employment
Planning for jobs, analysis, screen applicants, do replacements and firing
of employees terminates the employees. He is concerned with
recruitment, selection and placement.
b) Training
Develop training programs.
Assist of collection of training materials
Develop HR plans, policies matter of HR
c) Salaries and wages/compensation
Implement fair compensation.
Carry out job evaluation to establish relation worth of jobs.
Determine appropriate wage payable.
Motivate employees through compensation.
d) Employee and mgt Relation
Bargaining with employee’s union representative.
Harmonize labour relations.
e) Health and safety
Maintain all the fundamental health and safety conditions.
Identify the services and benefits prefers by employees.
Ensure a favorable working environment is provided.
 CHAPTER 3

MANPOWER PLANNING

It can be seen to make a comprehensive application of estimating the

number of persons and the kind of level of the knowledge, attitudes,
skills and habits needed for achieving require labour force i.e. Target.

Man power planning is an essentially concerned with the effective use of

human resources

It is integrally corporate and it is the collecting of link through which

needs and objectives are identified, utilized a met.

NEEDS FOR MAN POWER PLANNING

It has hard relatively low priority in the organization. Most organization
are planning which precepts however, now it is guanos some
reorganization for instance in Kenya

1. Return on investment.

Because in high investment in common resource within the organization

e.g. The ministry of Education total budget is 44b for teacher’s salaries
and approximately 34 billion for other hidden costs which as medical
and housing

2. Individual needs satisfaction

Man power planning is done to provide jobs satisfaction to individuals

as the aim is to place the individual on the tight jobs that one is able
to do satisfactorily both to his capability and linking.

3. Adapting to change

Change is an occurrence we encounter in life both inside and outside of

the organization. It is fair to say that change has accelerated in the
recent years as we in social economic changes, labour supply.
ADVANTAGES OF MANPOWER.

 Ensures that the right number of staff is recruited at each level in

hierarchy.
 Staffing requirement can be better balanced and movement of staff
made easier.
 Areas of high labour turnover are highlighted.

DISADVANTAGES

 It requires detailed information plus expenses clerical staff.

  Difficulty in forecasting changes especially technology and
government policies.

CHARACTERISTICS OF MANPOWER

Good man power should posses the following characteristics

1. Objectives of the plan.

There is need to establish the objective of the plan e.g. In the

recruitment of staff in an organization may need e.g. (X) level of
education and Y of level of experience.

2. Comprehensiveness of the plan

The plan should be complete and comprehensive i.e. It should

consider all the major determent, variables and groups of personnel in
theorganisation for example the staff should a number of senior,
supervisor’s subordinates in all the departments.

3. Feasibility study of the plan

The plan should be one that can be achieved through reasonable

efforts i.e. Not too variable which may partly or totally beyond the
control of the organization. There must be born in mind when setting
the objectives of the plan e

4. Flexibity of the plan.

The plan must be flexible to accommodate future incentives and

changes which may occur.

DEVELOPMENT OF MANPOWER (STAGES)

a) Forecasting manpower requirements.

This requires that the organization establishes its needs based on
both specific and general objectives. It is important to established
human resource requirement to achieve these needs. The manpower s
needs should be stated specifically in number and kind, quality: -
their age range, educational background, training technical and
supervisory skills.

The determination of human needs is normally through.

 Decision with other mangers, supervisors and other staff.

 Directs observation and work s sampling.
 Examination of production and staffing records of previous
years.

b) Establishing manpower Resources

There is need to carry out an inventory of the existing human

resources in the organization in terms of – Biography data, age,
health etc.

Personal data: - Aspiration and their personality educational and

training – both formal and informal general and specific.

Experience data: Precompany, incompany, length pf services, position

held exposure, appraisal records promo ability data: immediate
potential, or non salary data – Actual and the scale

c) Matching Resources with requirement

It is important to develop a programme to match with the projected

manpower requirement. This progrmme should be based on the
compelled statement and the number required a kind. However,
allowance should be made for the normal attrition (turnover) form
retirement, resignation, death and sis missal.
 Allowances should be made also for the expected changes i.e. due to
expansion or decline . While planning for required personnel, various
breakdowns should be considered.

 Level – Executive, middle and subordinates.

 Types – Manufacturing, marketing and sells finance and
administrative personnel.
 Division
 Department or Sections

Whatever the breakdown was used, they used reflect the homogeneity of
the staff within the groups and also factors affecting the planning.

d) Formulating policies and programmes

This involves deciding how an organization will meet its planned

manpower requirement policy and programmes should be formulated
regarding recruitment , training and development, performance
appraisal, staffing utilization, staff compensation e.g.

In each the aim will be to satisfy him manpower requirements of the

organization at reasonable cost. The decision to be made will concern,
hence the content of human resource plan:

1. Recruitment: Who will have to be recruited, when, how and at what

cost. Jobs to be created changed or dropped.
2. Training & Development
Who should be trained me what, how, when and at what cost.
Redeployment or retaining extends.
3. Performance appraisal
When and how appraisals take place? Necessary supervisory change
4. Staff utilization
When will staff be retired and what transfer and promotion practices
should be followed.
Compensation
5. Compensation
What changes in wages, salaries, incentives and fringed benefit?
6. Redundancy on retirement programmes.
7. Industrial Relations implications.
8. Feedback from modification of the organizational objectives

ADVANTAGES OF HUMAN RESOURCE PLANING

 The organization is better equipped to cope with human resource

demand. The staff requirement can be balanced and movement staff
made easier.
 It enables the organization to discover or improved ways of
managing human resources.
 Organization through human resources plan can be able to avoid
labour short all or surplus, thus becoming cost effective/conscious.
 It is necessary condition to be used when developing employee
training and succession programme.
 Forecasting of future problems is possible and can be avoided
through effective human resource plan.
 It ensures that critical assessment of strength and weakness the
labour force and personal policies are taken seriously.
 Areas of high labour turnover are highlighted.

DISADVANTAGES OF HRP

 It is difficult to focus social, economic and technological

changes.
 Financial constraint usually hinders the execution of the
plan. Defaulted records are needed plus expensive clerical staff.
 The emergency of new technology often than note renders
the implementation of the plan difficult or impossible.
  Many organizations employee usually resist change due to
fear of job security.
 Some employees oppose or become scepticl about the values
of human resources planning.

FORECASTING

Future demands of manpower are not to be focasted. The following

reasons provides an explanation

1. Technological has brought changes in materials, technical system

and sources of power.
2. Economic factor especially capital formation and marketing.
3. Social factors mainly the industrial legislation (wages and salaries,
monetary policies, training and redundancy.
4. Payment systems.

METHODS OF FORECASTING

1. Ratio trend forecasting

There existing manpower strength and work volume are analyzed and
detailed forecast are made of future work volume and probable change
in the methods future work volume are then related to passed ratios to
give a forecast.

2. Theoretical requirement Forecasting.

This involves accessing and defining the type and volume of activity
needed to attain the desired results

3. Zero –base forecasting

 The method uses theorganisation accrued level of employment as the
stating point for deterring future employee needed. The needs for new
employees may arise due to Retirement, Resignation or other dismissal &
separation. This is automatic that once any of these situations occur the
position will be filled.

Analysis should be done to determine whether there is any justification

to fill the positions. Essentially this method is concerned with justifying
employment decision.

4. Bottom –up approach

This approach forecast progress upwards the organization from small

units or aggregate forecast of manpower needs.

It maintains that to know human resource requirements, the manager or

the supervisor of each unit/section more knowledgeable of the
requirement.

The approach requires that each level the organization should forecast
for its employment needs. Once this is done the requirements are passed
on to the personnel department for statistical analysis.

5. Predictor variables

This method uses passed employment needs as an indicator of

manpower requirements. It is commonly used in organization where
there are involved in marketing /distributive industries for example
one predator of employment is sells because there is a relationship
between demand and the number of employees needed

ADVANTAGES OF FORECASTING OF HRP

1. Assist the management with the means of estimating the number

and kind of employees it requires. The forecast should forecast on
 both supply and demand for labour. It should determine the
availability of qualified personnel and sources where they will be
obtained.
2. Management will be able to know all its employees in terms of
skills and aspirations especially in small organization.
3. It helps to identify employees with promotional potential.
4. Management can be able to identifying the employers with
particular skills anytime and meet the challenges of the organization.
5. It can also assist in identifying where employee can be located
and predict the types of employees who will succeed in the
organization man power planning is similar to human resource
planning.

PURPOSE OF HRP &MANPOWER PLANNING

1. Recruit and retain qualified work force.

2. Optimized the employees talent, skills and abilities
3. Manage change through redeployment.
4. Fro training purpose i.e. It maps out the implications strategic
decision for subsequent HRM activities.
5. Human harmonizing plans and objectives of the organization.
6. It is swat analysis too for the organization i.e. Provides and impute
to the organization is strategy by outlining the possibilities and cost of
current and potential workforce.

Human Resource supply

It is the next stage of human resource planning which involves evolution

of labour supply. This is done with reference to the amount of labour
needed as a result of having calculated demand for labour based on sales
forecast and forecasted production levels.

It has two parts

Internal supply and External supply

a) This refers to the number of employees already employed by the

organization. The following details should be known about the - age,
grade, qualification, experience and skills. These are important for
succession plan, promotion (career progression) and organization would
reduced the internal supply of labour due to reduced demand for the
services of those current employment

Advantages of internal supply of labour

1. Regular employees are well placed to understand the way

things are done and how different parts of the organization fits
together and to appreciate the nature of that culture.
2. The people who carries our selection for vacant post have
access to more comprehensive information relating to the recruits
abilities, truck records and potential achievements.
3. Drawing from an internal supply of labour to fill vacancy where
the internal candidates receives a promotion ,sends a power signal
than the organization is committed to their advertisement and
development.

Disadvantages of internal supply of labour

1. Although there may be more information about internal candidates

at the disposal of the selector, it is not always free from bias.
2. There is a greater likelihood of more negative information about
internal candidate being available.
 3. Internal candidates should be (stepped) side in the culture of the
organization e.g. if the culture is conservative, it would act as
constraint when innovative practices and initiative are required for
the successful candidates.
4. It results to lack of new ideas introduced.

External supply of labour

When the organization cannot draw form internal supply of labour when
extra candidate staff are needed it will need to recruit from the eternal
labour markets.

The supply of labour can be tight i.e. This occurs when there are
relatively few external candidates with the necessary skills to do the job.
On the other hand a lose supply indicates when demand exceeds supply
some companies may engage in galumphing i.e. offering higher salaries
to potential recruits than what is offered by the competitor.

Advantages of External supply of labour

1. Greater target can be reached.

2. Transparency in selection is ensured.
3. Best candidates are likely tub e obtained.
4. A company can introduce fresh ideas with little resistance.

Disadvantages of external supply of labour.

1. It is time consuming e.g. advertising.

2. It is costly
3. Little information is known about external labour
Revision

a) Discuss purpose of human resource management &manpower

planning
b) Explain methods of forecasting
 CHAPTER 4

JOB EVALUATION AND GRADING

It is a systematic method of placing jobs in order of their relative

worth so that employees may be paid fairly.

It is concerned with the demand and conditions of the job and not with
the quality of the individually who occupied job.

It can also be defined as an attempted determined and compare the

demands the normal performance of a particular job makes on normal
work without taking account of the individuals abilities and the
performance of the workers concerned.

METHODS (TECHNIQUE) OF JOB EVALUATION

Ranking and grading.

QUALITITATIVE

Factor comparison and point rating.

1) Factor comparison (as a method)

It is an application of the person to person system of merit rating to job

evaluation.

There various attributes necessary for the performance of the jobs these
are compared for each job type.

Monetary values are directly assigned to each of the attributes (factor) as

demand by the job.
Jobs are ranked by one factor at a time and not the whole job. The
factors usually include mental and physical efforts, skills, education,
experience, responsibility, working condition e.t.c.

ii) Later move” Job Rotation”

Firms may sometimes move employees laterally e.g. Job rotation. Such
lateral moves can be variable learning experience building a more solid
base for subsequent promotion.

iii) Promotion

It is a change within the organization to a higher position with greater

responsibility and need for more advanced skills than in the previous
positions.

Usually it involves greater status and increase in pay it is the most

pleasant job move.

It may be reward for outstanding performance or for greater utilization of

the individual skills and abilities.

For promotion is a move up, generally to a new title more responsibilities

and better benefits. However peter’s principles asserts that good
workers are continually promoted to position of great
authority.Eventully they reach their level of incompetence and will not
be promoted again.

iv) Demotions

It is a movement downward, responsibilities and benefits. It race in an

organization

v) Terminating employees.
It is another painful reality especially in hard times as a results of
technology change merger altered strategies , fallen competition and
other factors firms must often engage in firing , such firing are some
times referred as MIS for management initiated supervisors.

JOB ANAYLSIS

Definition

It is the process of examining jobs in order to identify their features

in particular duties they fulfill, the results they are expected to
achieve, the major task undertaken and the jobs relations with other
jobs. In the organizational hierarchy.

Job analysis is the study of jobs within an organization so as to deterring

the activities employees perform, the tolls and equipment used.

It also look into the working conditions udder which theses activities
are performed and the minimum requirements one should have to
adequately perform a given job.

Benefits of Job Analysis

1. To line manager
2. To clarify the post to be filled by new recruits.
3. It produces job description which can provide essential
evidence for selection interviews.
4. It can provide the basic material on which performance
assessment can be based.
5. It is a prerequisite (conditions) for any analytical attempt at
job evaluation.
6. It can aide the review of organizational structures by clarify
the basic units of the organization.
 To the individuals

1. They can be given a clear idea of their responsibilities.

2. They are provided with a basis for arguing for changes or
improvements in their jobs e.g. Job redesigned.
3. They are provided with relevant information in respect of any
appraisal they may have.
4. They have an opportunity to participate in setting, their own
short term targets or objectives.

To the organization (Enterprises /business)

1. It is critical in improvement of staff morale.

2. Provide valuable data for organization and method
structures.
3. It provides or gives a more equitable (fair) pay structure to be
established.

METHODS OF DOING JOB ANALYSIS

1. Interview with job holder

At times and for some jobs a good understanding of activities involved

can be obtained by talking to the job holders

Disadvantages

1. It develops suspicion form within the organization and may

not tell the truth.
2. Employee may exaggerate his job.
3. Employee may forget and emphasizes on UN important
details.
4. Ambiguity of expression may result.
 5. His attitude towards the work may influence his response.

2) To interview the supervisor

This involves interviewing the supervisor of the worker about the

(KASH) knowledge attitude, skills and habits.

Disadvantages

i. Supervisor may be out of the task on the details of the

job.
ii. His attitude may influence the opinion of he job.
iii. Exaggeration of the importance, duties and
responsibilities in order to show how important he is.

3) Questionnaires

It involves administering a structural questionnaire to the employee

so that one can identify the activities they perform in accomplishing
their job. The employees are usually asked to describe their
experience, qualifications, skills and attitudes necessary to perform
their particular jobs.

The respondent is asked to describe in details the activities which

applied to the job, the importance of each activity in order of priority.

Disadvantages

i. It is highly unreliable
ii. The respondent may lack writing skills.
iii. The respondent may the duties and responsibilities of
the job.
iv. The language used may be a barrier.
 v. Respondents may be suspicious and fail to respond.
vi. Questionnaires may not be answered all.

4. Do It Yourself (Direct Observation)

The job analyst spends time to do the task i.e. Does it yourself thus is
also known as direct observation.

DISADVANTAGES

i. The results may be too subjective i.e. Analysis may be

unqualified.
ii. Failure to give full details due to fear.
iii. A skilled worker may make job to appear technical

5) Work diaries

The job holder records the duties for each day or a period of time, the
diaries is then analyzed to obtained a list of duties and their
frequencies.

Disadvantages

 The job holder may record what he does not do.

 They can be too broad or (detailed)
 If not kept properly may be unreliable

6) Sensitivity Training method

Used with small groups called I (for training group)

Involves brainstorming, thus attempt to develop participant’s sensitivity,
self-insight and awareness of group processes.

It is focusing in job and organization related issues rather than solely

on personal feelings.

7. Behaviour modeling /simulation

It involves supervisory trainees in dealing with actual employee problem

and gives immediate feedback on their performance. It brings about
behoviour changed through four steps.

 Viewing of films, videotapes, the model shows specifically how to

deal with situation.
 Participation on intensive practices and rehearsal of behavoiurs
demonstrated by the role model.
 After taking the role model, the trainees and the trainer provide
social reinforcers as praise approval e.g.
 Principle of transferring the training to the job is emphasized
through out tee training period

JOB DESCRIPTION
It is the next step after analyzing the job. It is a broad statement of
purpose details and the responsibilities of a job.
Uses
i. Helps to employ the staff suitable for some specific duties.
ii. Help to assign responsibilities to different employees.
iii. Shows the conditions under which the activities should be
performed
iv. Also give the standard and time required in performing the
activities about the impact of the decisions.

Job description format

 1. Job title/designation
2. Location
3. Date of analysis
4. Number supervised
5. Immediate supervisor
6. Relationship with other job.
7. Overall purpose of the job
8. Main duties /responsibilities/ key tasks
9. Authority granted.
10. Resources available to the job holder.
11. Principal qualification required for the job e.g. personnel
manager

JOB SPECIFICATION

It is a statement that set forth person requirement for individual

qualification for specific. It can be defined as detained statement s of
the physical and mental activities involved in job and when relevant
of sound and physical environment .

Alternately, it is a precise statement that spells the level and kind of

education, training or experience needed to perform.

Job specification is usually expressed in terms of behavour. It shows

what the worker does, what knowledge he uses in the job

JOB SPECIFICATON FORMAT

1. Job title- entrepreneurship development officers

2. Department – entrepreneur training department
3. Phsycal requirement - of reasonable standard.
4. Age - 30 -40 years
5. Educations requirement
6. Experience – 5years of continuous working
 7. Intelligent - above average
8. Interest – Intellectual bias and creative tendency
9. Disposition – Friendly but firm

- ambitions
- Assertive
- Acceptable personality.

Purpose of the job specification

It is important to note that the preparation of a job specification is

critical as a step in the process prior to recruitment because

1. It tells us about pose (selection)

2. It helps a bench mark not the desirable qualities and
important qualification below which the organization trust not
to go ( standard of performance)
3. Enhances the recruitment process particularly during short
listing.
4. Used to get the quality required for training or promotion
from within.
5. Form the basis of promotion criteria
6. Job evaluation
7. Appraisal.

TRAINING METHODS

1. on the job training method

This is done on – Specific job e.g. Coaching experience

- Position rotation
- Apprenticeship
2. off the job training methods

It is done thorugh

 -conference

 Brain storming

 -Special course
 -Lectures
 -Management games
 -Role playing

Off the training

Training away from the work place.

Techniques used are

a) Class room method

Advantages
 Easy of operation (many trainers0
 Control of class
 Cost effective
 Exchange of ideas
 Short duration.
 Conformity of instruction.
Disadvantages
 Lack of individual attention
 Encourage the use of lecture method which is no the best.
 Does not allow for practical exposure.
 Acquit person may not learn much.
b) Programmed instruction method.
Subject matter is broken down into organized logical sequences.
Trainees are presented with segment of information.
Successful response is made with an explanation and with a try again
responses.
c) Managerial Game method

Trainees are faced with a simulated situations e.g. As a business and re

required to make an ongoing series of decision e.g. Quantity to be
purchased, pricing techniques.

Feedback is given to the trainee make adjustments in their work pattern.

Finally performance appraisal is necessary a check on new policies

and programme example if a new pay system has been implemented it
would be useful to seek when it has had a positive effect on
employment performance

POINT RATING

It is commonly used method. It involves a more quantities and analytical

approach to eat measure of job. The method of assigning job valves
rather than money values with determined.

In this method, jobs are broken down into their component with their
compensable job demand. Total points are determined to obtain the
value of the job. The point cluster/factor is usually.

1. Skills Education – experience- initiatives – integrity.

2. Efforts. Physical. – Mental or visual demands

3. Responsibility For equipment or process, material or product safety or

the welfare of others.

4. Job conditions
Working conditions, monotony, unavoidable hazards. The point assigned
to range each job demand indicates its relative as a job required in an
organization

Steps

i. Select the job /characteristic

ii. Contraction the scale or yard stick of value.
iii. Evaluate all jobs in terms of their
iv. Conduct wage survey for collected key job
v. Design the wage structure.
vi. Adjust and operate the wage structure.

RANKING

The method is non- qualititative and non-analytical.

It should involve the preparation of brief job description, job

description is then placed in order or work without respect of persons
present performing their job or to e present wage rate paid

No specific factors are considered.

PROCEDURE/STEPS

1. Bench mark jobs identified and others jobs are compared

and ranked.
2. Bench mark jobs are drawn all level of the organization.
3. Each job to be evaluated is compared the bench mark job
is judged to determinate its relationship to the bench mark job to
the organization (A) As jobs increase, new jobs are compared with
already ranked jobs.
4. In large organization job families are used.
ADVANTAGES

1. It helps in determining a rational and suitable wage paying

system.
2. More suitable for delegating relative strength to supervisors
and managerial jobs.

DISADVATAGES

1. There exists a problem in getting (incenses commonness)

among accesses when jobs are large.
2. It is difficult to choose a bench mark job.
3. It does not saw by how much a job or group of jobs is
relatively higher that another and therefore should be paid
higher .
4. Its advantage of being simple in itself a defect in that the
measurement is crude.
5. It’s hard to measure whole jobs.
6. No predetermined scale of value or yardsticks for judges to
use.
7. It is difficult to explain to the job incumbent (a person
employed)

USES OF JOB EVAUATION

1. To make pay administration easier by the number of

separate grade pay.
2. To harmonize internal rate of pay to those found in other
companies.
3. To provide a means by which a reasonable rate of pay can be
fixed for new or change jobs within the company.
4. To protect the employees from arbitration decision by
management.
 5. To justify wage differentiation and hence avoid frequent
invocation of grievance procedures.
6. To facilitates fair promotion systems based on determine
job grading rationally.

ADVANTAGES OF JOB EVALUATION

1. Provide systematic procedures, describing and placing a

value on a job.
2. Job description can be used in recruitment and selection.
3. People are paid for work performed and the satisfaction
desire can lead to higher morale and better cooperation.
4. Union can play a part in deciding between levels of pay.
5. Helps in solving wage contracted.
6. Helps as a guide for giving promotions
7. Helps organization to reach a degree of standardization in
wage levels.
8. Simplified the wage rate structure.
9. Helps in sectioning and centralizing the process of deterring
wage and salaries differential with staff analytic to assist it.
10. Helps in securing agreement among management officials.
In the organization and among union representatives in unionized
firms planned on the question of proper wage differential.
11. Helps in developing procedures for systematic reviewing
jobs rates as job contents changes with technological and process
improvement or as variations occur amongst rate of particular
jobs.

DISADVATAGES

No allowance is made for difference displaced in the performance of

a job; however, merit rating can be used.
 Pay rates are also affected by market commodities i.e. Demand
and Supply.

Revision

1) Name advantages of job evaluation

2) Explain job specification format

CHAPTER 5

STAFFING

Recruitment

It is a deliberate and active seeking out of people who can fill the
organization job opening.

It is a process to identify potential workers with their appropriate

knowledge and skill, experience to fill up vacancies in the
establishment or department.

The aim is to add new skills and competencies to inject new life into the
organization.

CHALLENGES OF HR MANAGER IN RECRUITMENT.

The educated workforce today is demanding and therefore a human
resource manager would face the following challenges.

1. Skilled labour who knows their right privileges challenging

and meaniful work.
2. Most workers need a greater say in decision making on
aspect that affect their work.

3. The government intervention through price registration/wages

guidelines also make it difficult for HR manager in planning for
treatment.

4. Unions have more control of hiring and firing workers.

Recruitment also ca involves location and attracting potential

employees to apply for jobs in the organization.

The recruitment process

It involves

a. Receiving the cv and application letters

b. Short listing
c. Selection
d. Placement /Induction

Selections:

It is choosing from a sample the suitable candidates. This is done in

accordance to job specification and job description.

Selection is done because of individual differences.

The following techniques are used to select candidate.

 i. Interviews
ii. Psychological tests
iii. References
iv. Bio-geographical data (previous employment)
v. Work sample tests e.g psychomotor, group discussion job
related information.

The selection procedure begins with

Doing job analysis

Identifying selection instruments e.g. I.Qs. application forms, interviews.

Selection goes through the following stages

 Shift through application form and CV’s

 Short listing of candidates.
 Invitation of the short listed candidates.
 Interviewing of the short listed candidates.
 An offer is made to the candidates offer may include
salary /wage, terms of employment, and notice of termination.

Ways of selecting right candidates for the job

1. Application Blanks

These provide the hiring from which the information about education
background, work experience and other outside interest is obtained.

PROBLEMS WITH APPLICATION BLANKS

 The information provided by the applicant may not be

relevant to performance in the job.
 An applicant my give incorrect or misleading information in
application blanks or resumes.
  There are legal restrictions on to what can and cannot be
asked on an application form.

2. References

These are written by previous employee’s workers or acquaintances.

Problems

 Referees sometimes do not really know much about the

person requesting the reference.
 At times they are not frank because they don’t want to say
anything bad about a person.
 Unfaithfulness on the past of the referee.
 Convincing and bringing in incompetent employees.

3. Interviews

They are generally used and involve asking job candidates a series of
questions.

Structured interviews have precise questions asked in an orderly and

fixed manner.

An unstructured interview there is loses interchanges between the

interviewer and the job candidates.

DISADVANTAGES OF USING INTERVIEWS

 It is not a reliable and a valid means of selection

  Interviewer may interpret information differently.
 Interviewers do not ask right/relevant questions.
 There is subjective judgment influenced by personal appearance.
 Predetermined opinion of the interviewer before they have
necessary information to make a fair judgment.

ADVANTAGES

However interviews are popular because

i. They are easier to ask a series of questions than to develop a

test such as ability testing.
ii. Makes the selection process more personal and gives the
interview an overall idea whether the applicant is right for the
job. Unfortunately, it seems that these organizing aspects and
other problems largely undermined much of the potential vale of
interviews.

NB

To improve on the overall standing of interviewers the following

solutions should be implemented.

i. Set in training programmes where interviewers would receive

prior training.
ii. Appropriately circulate the job description, job specification,
completed application forms to give to the interviewers in advance.
iii. The venue should be suitable and the furniture appropriately
arranged.
iv. Allocate reasonable time and each interview should receive
the same time allocation.
v. Where appropriate, open ended, job related should be asked
of interviewers.
 vi. After formal questioning the interviewer should be given
opportunity to ask questions and be free to make observations.
vii. Use a panel rather than one to one interviewer to reduce
individual interviewer’s bias.

TESTING

It is a relatively objective way to determine how well a person may do

on the job. Many human resource experts and personnel managers
believe that testing in the single test selection tool. Test yield more
information about a person that does a complete application blank and
they have less bias than do interviews.

TYPES OF TESTS
a) Ability test
Measures whether the applicant is able to perform the task required
in the job meaniful ability tests assesses memory , problem solving
speed viable comprehension , ability to deal with numbers e.t.c.
mechanical ability test measures two partial relationship i.e. ability to
see how parts fit together into a whole.
b) Personality test
Measures the strength or weaknesses or personality characteristic that
might be important on the job.
c) Interest
Measures a person likes or dislikes for various activities.
d) Work sample test
Measures how well applicant s performs on selected tasks. That the test
may include typing speed for typist or judgment tasks for police officers.
5. Assessment Centre
Instead of just using interviews or tests, many large companies
approach the employees selected more systematically. They use a variety
of produces combined in the form of an assessment centre.
These centres have psychologists and other experience on human
behaviour as well as test, interviewer group discussion and other
approaches

Often managers within a firm or company assessors

INTERNAL SOURCE OF RECRUITMENT

Advantages

 Provide motivation to employees.

 Retaining of employees already known.
 Provide challenge to employee to perform to expectation.
 Provide opportunity for continuity (easier progress)
 Enabling tapping of talent potential skills of junior employees.
 Cheaper
 It’s reliable

Disadvantages

1. No new ideas.
2. There is a possibility of jealous leading to de-motivation.
3. Better qualified employees are not recruited.

EXTERNAL SOURCES OF RECRUITMENT

Advantages

a) New ideas can be obtained

b) Greater target can be reached.
c) Transparency is ensured.
d) Best candidate are likely to be recruited.
e) Changes are possibly introduced.
Disadvantages

 It’s costly
 Time consuming
 Coordination becomes hard.

PLACEMENT

It is a means of filing people and job together. It includes

everything form helping new employees feel at home in their firm, to
promote them into position of greater pay and responsibilities to
demoting them to less desirable position where necessary.

It involves three activities:

Orientation/Induction

Involves introducing new employees to their jobs and company. It is the

employees first inside look at the company if properly done, job

Revision

a) Discuss types of tests

b) Explain challenges faced by hr manager in recruitment

CHAPTER 6

COMPENSATION AND MOTIVATION

Principles purpose of payment policy in an organization

 - To attract sufficient and suitable employees.

- To retain employees who are satisfactory.

-To reward employees for effort, loyalty and experience

Reasons for compensation employees

Reasons for paying employees

i. To fulfill legal obligation

ii. To obtain a sufficient share of relevant labour market
(qualified employees)
iii. To ensure a high level of quality output.
iv. To provide fair reward to those performing suitable roles.
v. To provide incentive for employees- for motivational
vi. To encourage optimum productivity form employees
vii. To recognize the value of jobs in relation to each other.

What is the major influence of pay (factors?)

i. Ability to pay by the organization

ii. Bargaining strength of trade unions
iii. Comparability e.g checking on rates being paid in other
firms.
iv. Labour market conditions e.g. it is affected by the economic
situation of the country
v. Cost of living
vi. Government action e.g. the minimum wage levels given by
the government
vii. Productivity e.g good selling market.
viii. Existing differentials/customs and practice e.g. some have
introduced some customs such as fringed benefits.
ix. Organizational & technological change.
Types of Wage payment system

 Time rate system

 Payment by results system
 Company wide incentive scheme where pay is linked to
overall performance e.g. paid bonus.
 Single status schemes where manual workers are paid as
salaried employees.

Time rate system

Advantages

i. The management is in control of production

ii. Employees receive predictable earnings as enhanced stage.
iii. It is simple to operate.
iv. Labour costs can be readily controlled.
v. It encourages collaboration rather than competitions
between employees.
vi. They encourage labour flexibility

“Compensation based performance”

Pay by results system

Advantages

i. High level of output is achieved.

ii. It may lead to employees motivation thus putting extra
effort and be rewarded within the day

Disadvantages of pay by Results

i. The quality produced may be of a low standard.

ii. The rate fixed to the item is often subject to argument.
 iii. Hardworking employee may suffer at a expenses of his fellow
lazy workers.

Company Wide scheme.

It is where bonus is paid to all employees on the basis of productivity

achieved within the business as a whole.

Single status schemed (paid at the month end e.g. salary)

It gives clear differences of treatment of a manual worker and white

collar staff.

Advantages

i. The organization saves administration costs.

ii. It improves the borrowing position of the manual workers
through annual salary.
iii. It helps to improve industrial relations.
iv. Manual workers receive benefits than previously
v. Pay administration becomes simpler.

Disadvantages of single status scheme

 Manual workers are to wait for a month before they are paid.
 It leads to increase of labour costs as a result of
improvements to manual workers conditions.
 There is less scope for management.

Types of salary systems.

a) Merit scale (due to skill, education)

b) Incremental scales

Merit scales
It is based on range from EX to EY

Advantage of merit scales

i. It focuses on the individual performance rather than length

of service.
ii. It provides scope for rewarding extra effort for results.
iii. It enables salaries to be adjusted more flexibility than
incremental rates

Disadvantages of merit rating

i. It requires an appraisal system

ii. It may not always seen equitable to staff.
iii. Employees don’t know in advance how much will receive for
me

Incremental scales

This are salary ranges having a number of pay points or steps which
every job holder must alight on as she /he progresses through the
salary range .

Advantage of incremental system

i. It is simple to operate.
ii. It is clearly understood by the staff.
iii. No appraisal system is required.
iv. The staff can reliably focus on their salary group.

Disadvantages

i. It is flexible.
 ii. It tends to mediocre performance rather than high
performance.

Employee benefits includes

 Security benefits e.g. Pension schemes, life insurance, loans for

his house purchase
 Work related benefits e.g. Car loans, special training
opportunities
 Status related benefits e.g. Prestige cars, attainment allowance,
payment of telephone and children education scheme.

Changes in the organization referred to as positive and responsibility

change. These includes
 Promotion
 Transfer
 Demotion
 Dismissal
 Retirement
Causes of dismissal are:-
 Misconduct
 Inadequate performance
 Criminal activity
Record of repeated violation of established rules and regulations.
 Labour turnover costs to the organization are
 Cost of recruitment and selection
 Cost of training and development
 Cost of interruption of ongoing group work.
 Cost of processing new employees payroll.
 Payment of terminal benefits.
 Possible demoralization of the remaining measures.
Causes of labour turnover in the organization

i. Poor working conditions.

ii. Undesirable jobs
iii. Poor job analysis
iv. Pay inequities
v. Dismissal of employees
vi. Limited opportunities for advancement.
vii. Limited tolerance for frustrations
viii. Lack of commitment and uncertainty as to what one wants to do.

How to minimize labour turnover

i. By better clarification of job expectations to the worker

ii. By improving concerned about employee’s welfare.
iii. Better recruitment selection & placement of employees
iv. When analyzing turnover rates, distinguish between high
performance and low performance.
v. Ensure that expected rewards by employees are closely tied
to desired behavior.
vi. Recognize the importance of job attitudes, both job
satisfaction and dissatisfaction and organizational commitment
since these attitudes can influence subsequent job
performance and intent to leave.
vii. Clear job analysis both job descriptions and job
specifications

Ways of improving performance Appraisal of workers.

i. By better job description and specification thus employees

awareness of what is expected in the job.
ii. By encouraging individual employee’s appraisal than groups
as people are not the same.
 iii. Use of qualifies rater.
iv. By using a well understood method of appraisal such as
grading.
v. By knowing full the character and behavior of employees at
work.

Factors to consider when drawing wages and salary scale for

employees in the organization

 Wage and salary policy should be carefully developed

bearing in mind the interests of management, employees and
society.
 Decisions should be made and checked against
formulated policies.
 Employees should be made to understand the wage
and salary policy.

Wage – is the payment made to manual workers in addition to the basic

rate the workers will often receive other payments, the most common
examples of which are as follows.

 Overtime pay
 Shift pay
 Special additions
 Cost of living allowances
 Policy allowances
 Payment by results bonus

Revision

a) State Ways in which a company can administer its salary

b) Discuss Ways of improving performance Appraisal of workers
 CHAPTER 7

INDUSTRIAL RELATIONS

It is the rule, practices and conventions governing interactions between

mgt and their workforces normally involving collective employee’s
representation and bargaining.

TRADE UNIONS

It is an association of workers formed to protect their interests in

employment situations.

Objectives of Trade Unions

 To seek better wages and working conditions for their

members.
 Greater job security
 Improved welfare benefits.
 To have more employee participation in management.
 It is to be a democratic organization

Reasons for joining trade unions

 To improve their working conditions

 To gain some control over working environment.
 Due to pressure from present union members and him feels
isolated.
 What are the effects of unions on Management
 Decision and policies are subject to challenge and negotiation.
 Mgt powers are limited and they may be used more cautiously.
  Decision making may become centralized so that a unified
company industrial relations policy can be formulated and
practiced.
 The management may be required to give certain information
about the company to union representatives.

TRADE UNION CONGRESS

It is association of over 100 unions. Its policy is decided by its

constituent unions at the annual congress. Its power is limited over its
member Trades Union Congress functions:

 To agree and express a policy for the trade union movement.

 To be consulted by the government
 To deal with inter-union disputes
 To promote legislation to protect and benefit its members.
 Employers associations
 It is formed by the employers to negotiate on industrial
relations matters for the industry.
 For trade and information purposes.

Types of trade Unions

 Trades unions congress

 Employers associations
 Staff associations
 Collective bargaining

Staff Association

It is an association of workers selected in an organization as

representatives at all the departmental levels.

TRADE UNIONS LIMITATIONS

  Trade union leaders are not sincere i.e they try to see these
union for their own purposes.
 The bargaining power of laborers is weak as compared to
employers.
 At some times the laborers are not united.

INDUSTRIAL RELATION

The relationship that exists between the employer and the employees is
called industrial Relations or labour relations.

The scope of industrial relation s covers the three areas namely:

- Relationship between employers & employers.

- A collective Relationship between employers and
labour unions (trade unions).
- The role of the government in reputation of the two
above.

A good employee – Employer Relationship prevents the chance of strike,

work stoppage, boycotts.

Conditions required establishing and maintaining a good employee and

employer relationship. (Necessary)

1. Workers willingness to deliver the services.

2. Recognition of the ;workers by their employer that they
are part of the team working towards common goals .
3. Fair attitudes towards redressing workers grievances.
4. Fair attitudes of supervisors toward workers rights.
5. Refusal by both workers and trade union leaders no to be
influenced by political leaders to hold a strike.
6. Payment of fair wages, salaries and adequate working
conditions.
 7. Offering some training in labour and human relations skills
to workers.
8. Establishing adequate communication channel between the
workers and employers in order to keep workers informed about
decisions that affect their work and interest.
9. Establishing atmosphere of participation though joint
committee’s consultation.
10. Introduction of a suitable system of work at all.

Factors contributing to poor employee- employer Relationship

 Workers are indiscipline.

 Unhealthy working conditions.
 Mgt not being tolerant towards workers.
 Inadequate payment structure.
 Lack of human Relations skills form the mgt e.g. Manager or
supervisor.
 Employer’s failure to; meet the desire of the workers.
 Dismissal which are unfair and strikes or boycotts of works on the
part of workers.
 Introduction of technological changes without prior preparation.
 Due to general economic or political environment such as rising
prices, strikes by workers.

Causes of Grievances in organization

 Due to communication breakdown

 Hostile management
 Disagreement over wages and fringed benefits
 Clashes over personalities.
 Clashes over values
 Workers distrust over authority
  External forces like rapid changes in technology
 Misunderstanding
 When classes of labour contract are understood differently
by workers and mgt.

Signs of potential Grievances (Disputes)

 Poor job performance

 Increased cases of absenteeism
 Unwillingness to co-operate
 Decreased interest in work
 Slowing down in the job
 Negative statement about the job
 Increased rate of accident.
 Low productivity
 Poor quality work.

How to minimize Grievances

 Treating workers as individual and with dignity

 Recognizing good performance, identifying them
and rewarding them.
 Training workers how to perform their jobs.
 Seeing the issue from the workers point of view.
 Knowing of the labour contract and applying it.
 Being objective, fair and consistent in disciplinary
actions.

Revision

a) Name Causes of Grievances in organization

 b) Discuss factors contributing to poor employee- employer
Relationship

CHAPTER 8

ROLE OF GOVERNMENT IN INDUSTRIAL RELATIONS

Kenya Industrial Court

Its objectives

To give judgment in trade disputes between employees and employer. Its

decision is regarded as final. The judge of the industrial court is
appointed by the president and four other members are appointed by the
minister of labour.
Industrial deputes are settled by the industrial court .The disputes here
may; be

 Terms of employment
 Dismissal of employee
 Redundancy of employees

It can either be between employees and employed or trade unions.

Trade dispute is to be reported in writing to the minister of labour then
the minister will give out his decision on the issue
Employers Organization
It is association of employer’s e.g. Kenya sugar employers Association
Function of Employers organizations
 They protect the rights of employers
 They have united force to face the pressure of the trade
unions.
 To make decision s regarding the promotion of the sales,
fixing pricing.
 To approach the government on the behalf of all employers
in one industry in case of difficulty.
 To adopt uniform policy regarding wages, working hours and
other employment conditions.

Disadvantages of employers Association

 No maximum cooperation of members.

 It is affected by the government interference in the business e.g
provision the wages of laborers.
 All the firms in one industry may not join the employers
association.
 At times it fails to overcome the pressure put on them by the trade
unions.
Examples of Employers Associations

FKE Federation of Kenya Employers

 Protect the rights of employers

 Develop good atmosphere of good relationship between
employees and employees.
 Provide a forum of discussion.
 It participates on the behalf of employers in tripartite
discussion.

DISPUTE PROCEDURE

Procedure of the settlement of industrial dispute

 A committee is formed by the labour minister

 The committee consists of him representative of the minister,
employers and trade union.
 The committee is formed to solve the dispute

IMPORTANCE OF INDUSTRIAL RELATIONS

 It helps in economic progress of an economy as it results in

increased productivity which is necessary for bringing rapid
economic development.
 It helps in establishing and maintaining industrial
democracy which is necessary for establishment of a social society.
 It leads to smooth collective bargaining on the part of both
labour and mgt.
 Leads to less number of disputes and grievances and it boost
the morale and discipline of workers.
  It helps the government in framing and implementing
various laws pertaining to labour.
 It results in orderliness, effectiveness and efficiency of
economy e.g. union gains more strength and vitality.

AIMS (OBJECTIVES) OF INDUSTRIAL RELATIONS

 To safeguard the interest of workers and the mgt by

securing the highest level of mutual understanding.
 To eliminate the possible strikes and improve working
conditions and settling grievances.
 To raise productivity by reducing absenteeism and
labour turnover.
 To avoid industrial conflict and develop harmonious
relations, which are absolutely essential for improving
productivity and industrial progress

FACTORS AFFECTING SOUND INDUSTRIAL RELATIONS

 Educational background of workers.

 The nature of industry and business cycles.
 Public policy and legislation
 Off the job working conditions of employees.
 Economic satisfaction of employees.
 Social and psychological satisfaction of workers.
 Negotiating skills and attitudes of mgt and
workers.
 Strong labour unions.
 History of the organization

Causes of poor industrial Relations

 Uninteresting nature of work e.g. Lack of job satisfaction.

  Low level of wages.
 Poor climate e.g. Poor physical facilities, tools.
 Political nature of the trade unions.
 Occupational instability e.g. lack of job security.

Methods of improving industrial Relations

 Through empathy e.g. by accepting each other i.e. the mgt

and the trade unions to accept one another.
 Through better communication
 Through the practice of better from of leadership in the
organization e.g. participative type of leadership.
 Through loyalty of the workers both to the mgt and their
trade unions.
 Through integrity (togetherness)

Ways of motivating employees

 Giving them fair remuneration

 By incentives e.g. bonus pension and profit sharing.
 Better job security.
 Through favourable working conditions.
 Through recognition of their work and presence.
 Through participation e.g. decision making
 Safety progrmmes organized to them by the firm.
 Health progrmmes organized to them by the firm.
 Education programmes organized by the firm.

LABOUR WELFARE (Employee welfare)

It is any effort to make life worth living for workmen.

OBJECTIVE S OF LABOUR WELFARE

  To win over employer’s loyalty
 To boast the morale of employees.
 To reduce the threat of government intervention.
 To retain intelligent, effective and efficient employees.
 To make recruitment more effective and efficient employees.
 To make recruitment more effective.
 To save corporate e.g. it is charged on the profit made.
 To increase efficiency and productivity of employees.
 To reduce labour turnover.
 To combat trade unionism and socialist ideas.
 To give honest expression and paternalistic feelings.

STEPS (PROCESS) IN GRIEVANCES OR SOLVING

1st Step – The grievance is discussed by the supervisor, steward and the
workers.
2nd Step- The grievance is put in writing by the supervisor, his superior
and chief shop steward.
3rd Step – The grievance is heard by the personnel dept and the union
grievance committee.
4th Step - The grievance is heard by the top mgt and the union officials.
5th Step - The grievance is heard by the arbitrator.
6th Step – The grievance is discussed by the arbitration board and the
industrial court