YARDSTICK INTERNATIONAL COLLEGE 2023

YARDSTICK INTERNATIONAL COLLEGE

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF BUSINESS ADMINISTRATION
MASTER OF BUSINESS ADMINISTRATION
ONLINE PROGRAM
Human Resource and Management Assignment 02

Submitted by: Abubeker Negesa Gemeda

ID No: MBAO/3885/15A

Submitted to: Berihun (PhD)

July, 2023
Addis Ababa, Ethiopia

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TABLE OF CONTENT

1.1. Overview of the Organization ...........................................................................................................3

1.2 Vision ........................................................................................................................................................3

1.3. Mission .....................................................................................................................................................3

1.4. Value ........................................................................................................................................................4

2. The Performance Appraisal /Method/ Tools Well Designed......................................................................4

3. Types of Leaves...........................................................................................................................................5

4. The Compensation Is Determination ..........................................................................................................7

5. Practicing Human Resource Planning ........................................................................................................7

6. Practicing Job Analysis ..............................................................................................................................8

7. Employee Benefits and Services ................................................................................................................8

8. Working Environment: Employee Safety and Health...............................................................................10

9. Employee relations.....................................................................................................................................10

10. Employee Grievances and Discipline......................................................................................................11

11. Conclusion...............................................................................................................................................13

12. Reference ................................................................................................................................................14

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1. INTRODUCTION
1.1 OVERVIEW OF THE ORGANIZATION
Ethiopian Electric Power Authority (EELPA) was established in 1955(1948 E.C). It was reestablished as
Ethiopian Electric Power Corporation (EEPCo) after restructuring in 1996(1989E.C). The corporation was
reorganized in to two entities, Ethiopian Electric Power (EEP) and Ethiopian Electric Utility (EEU) in
2013(2006 E.C).
Ethiopian Electric Power (EEP) was established by the FDRE Council of Ministers Regulation No.
302/2013 and amended Regulation No. 381/2016 to implement the following objectives. Therefore, the
following are the objectives for which the EEP is mandated in accordance with the amended Regulation of
the Council of Ministers of FDRE No. 381/2016.
1/ To undertake feasibility studies, design and survey of electricity generation in integrated national grid,
construction of transmission lines and substation over 66 kilo volt level; to contract out such activities to
consultants, as required
2/ To undertake construction and up grading of electricity generation in integrated national grid and,
construction and up grading transmission lines and substation of over 66 kilo volt level; to contract out
such works to contractors as required;
3/to administer, operate and maintain electricity generation in the integrated national grid, and transmission
lines and substation of over 66 kilo volt level;
4/ to sell and purchase bulk electric power on transmission lines above 66 kilo volt level;
5/ to lease transmission lines above 66 kilo volt level;
6/ to submit electricity tariff proposals with respect to power it sales and implement same upon approval;
7/ In line with directives and policy guidelines issued by the Ministry of finance and economic cooperation
to sell and pledge bonds and to negotiate and sing loan agreements with locale and international financial
sources;
8/ To undertake any other related activities necessary for the attainment of its purposes.
Electricity supply system
Currently, there are 22 interconnected generation plants and they are mainly from hydropower and wind
farms. In addition to these, the EEP also has power plants that generate energy from solid waste and
geothermal sources.
1.2. VISION
To be a first class providing quality electric power of the country and regionally interconnected as a
competitive export industry.
1.3. MISSION

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To provide adequate and quality electricity generation, transmission through continuous improvement of
management practice responsive to the socio-economic development and environmental protection need of
the public.
1.4. VALUES
 Customer/stake holder satisfaction
 Team work
 Continuous learning
 Environmental protection and friendly
 Social responsibility
 Building our human resources capacity towards the most level
2. ETHIOPIAN ELECTRIC POWER THE PERFORMANCE APPRAISAL /METHOD/
TOOLS

No part of this manual shall affect the employee’s rights given under the Labour Proclamation No
1156/2019. However; employees are required to comply with all the company policies, regulations,
and procedures. In case the provisions of the manual contradict with the labour law, the provisions of
the labour law shall prevail. This manual is effective from January 01, 2021 and remains in force
unless otherwise amended by the BOD.

1. The HR Manager will notify the employee and the supervisor that evaluation is due.
2. The supervisor and the employee will select a date for the review.
3. The employee fills out the self-assessment section of the performance review form.
4. The employee’s supervisor reviews and adds her/his assessment of the employee’s performance
5. The supervisor and employee meet to discuss the following:
5.1. Assessment of the past year’s performance and feedback from supervisor
5.2. Planned activities for the coming year.5.3.Employee's goal for personal and professional development
in the coming year.
5.4. Any additional performance standards/expectations.
6. The employee’s supervisor should provide written comments on the employee's performance, and the
employee should be given an opportunity to respond.
7. Once the document has been finalized, the employee signs the evaluation as his/her indication of
approval
8. If the employee refuses to sign the appraisal form, the supervisor shall complete the evaluation process
and note the employee’s reason for refusing to sign the form.

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9. All final evaluation forms are to be completed, signed by the supervisor and supervisee, and
returned to the HR Manager.
10. The performance appraisal is a confidential document that, upon completion, will be filed in the
employee’s personnel file. The employee will be provided with a copy of her/his performance
appraisal.
11. In the event of unsatisfactory performance, the supervisor should discuss the
performance with the HR Manager to begin the performance improvement process to support the
employee as outlined below.
12. A good or superior performance review is not a guarantee for continued employment or salary
increase. Policies related to salary increases are detailed below.
2.1. PERFORMANCE IMPROVEMENT PLAN
1.In cases where a staff member is underperforming and needs support to improve her/his
performance in specific areas, a performance improvement plan (PIP) with clear
expectations, tasks, deliverables, and timelines will be developed by the supervisor and
explained in detail to the staff member.
2. The improvement plan will be used as a managerial tool to measure the employee’s
performance during the set period of time and to decide on next steps.
3. Employees on a performance improvement plan are not eligible for a salary change until the
process is complete. The salary change will not be retroactive.
4. The PIP process can be initiated by the supervisor at any time. It does not have to align with the
probationary or annual review times.

3. TYPE OF LEAVE
All workers are entitled to leave in the course of their employment according to the Labor Proclamation
No Article 76 and 77. The number of days shall comply with the contract of employment and the
applicable law, as well as the relevant collective agreement. Under no circumstances, the conditions will
not be less favorable than those provided under the Law of Ethiopia. All the national public holiday is
recognized for all the workers and the Power Corporation s h a l l assure the respect of each public
holiday. Who is paid on a monthly basis shall gain no reduction in his/her wage on account of having
not worked on public holidays.
The Ethiopian Electric Corporation offers the following types of leaves to its employees:

Sick Leave

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1. After completing probation, employee who is incapable of work due to sickness other than
resulting work injury is entitled to a sick leave for a maximum of six months consecutively or
separately in the course of any twelve months period from the first day of his/her sickness.
2. The payment of wage or salary in the period of sick leave will be as follows:
a) The first one (1) month one hundred percent (100%) of wages,
b) The next two (2) months fifty percent (50%) of wages, c)the
next three (3) months without pay
3. An employee who is sick and absent from work must notify the office as early as possible on the
day of his/her absence.
4. A medical certificate must be provided for Sick Leave of more than two (2) consecutive workdays
from EEPC approved health facilities only.
5. Uncertified sick leave shall be charged to annual leave.
6. Medical appointments that cannot be scheduled during non-working hours shall be charged to
Annual Leave.
7. Neither sick leave nor annual leave can be extended in the occurrence of either of the two over-
lapping.
8. Sick leave due to employment injury shall be treated in accordance with the labour
proclamation.
Maternity, Paternity and Adoption Leave
1. A pregnant employee shall be eligible for time off for medical examination connected with her
pregnancy after prior approval of the immediate supervisor.
2. Thirty (30) consecutive calendar days of paid maternity leave during the pre-natal period and sixty
(60) consecutive calendar days of paid maternity leave is available to all full-time female
employees who give birth to or adopt a child, and who have already completed the
probationary period with the project.
3. If leave is not used during the pre-natal period, the full-time female employee may take up to a
maximum of (90) consecutive calendar days of paid maternity leave.
4. Upon approval of the CED, annual leave, sick leave, or leave without pay may be used to extend
the maternity leave period.
5. Annual leave will continue to accrue during paid maternity leave (e.g., maternity benefit or
previously accrued vacation). However, leave and other benefits will not accrue during any
unpaid maternity leave.

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6. Employees must submit a maternity leave request at least 30 days prior to the anticipated
date of departure along with medical certificate indicating expected delivery date to the immediate
supervisor and EE HR Manager.
7. Submission of adoption documents is required to be eligible for the adoption leave benefit.
8. A male employee who has completed his probation is entitled to five (5) consecutive weekdays
paid Paternity Leave, which must be taken within 1 month of the birth of his child.
9. Their request must be supported by valid evidence and prior approval from the immediate
supervisor must be obtained.
Bereavement Leave
1. Employees are allowed three (3) consecutive days of leave upon the death of a member of the
immediate family. Immediate family includes father, stepfather, father-in-law, mother,
stepmother, mother-in-law, sister, stepsister, sister-in-law, brother, stepbrother, brother-in-law,
spouse, child, grandchild, or grandparent.
2. This benefit cannot be claimed in cases such as death occurring during vacation, on paid
holiday, or in any other case that would result in paying twice for the same time off.
3. This benefit also cannot be claimed if the employee is on leave of absence or is absent as a result
of disability, illness, or other personal business.
4. Bereavement leave shall not exceed 9 days in a given year.
5. If the employee has used the allotted number of days and additional days off are necessary,
the employee may take time without pay and upon approval of the CED.
6. EEPC reserves the right to have proof of absence under this policy.
4. COMPENSATION DETERMINATION
The organization follows the guidelines provided by Ethiopian HR proclamations and directives to
determine compensation. This includes considering factors such as job responsibilities, market rates, and
internal equity to ensure fair and competitive compensation for employees.
The compensation of employees in the organization is determined by The Ethiopian Federal Civil Servants
Proclamation.
The amount of compensation in such cases is a liquidated sum of ―sixty multiplied by the average daily
wage of the employee for the last week of service for the first two grounds of termination and an amount
equal to thirty times his/her daily wages of the last week of service for the final ground of termination
above. Unlike severance payment which takes length of service into consideration, the amount of
compensation in both cases does not take the length of service of the employee into account.
5. HUMAN RESOURCE PLANNING

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Ethiopian Electric Power practices human resource planning to align its workforce with
organizational goals and objectives. This involves forecasting future HR needs, identifying skill gaps,
and implementing strategies to recruit, develop, and retain the right talent.

The organization practices Human Resource Planning by The Ethiopian Federal Civil Servants
Proclamation (Proclamation No. 515/2007): Article 12 sub Article 1 indicates that human resource
planning is vital to enable government institutions to take measure to meet the objective specified in the
strategic plans, to predict the demand on human resource, to obtain the right number and type of human
resource, to build-up and properly utilize it, monitor and appraise its result and make corrective measures
from time to time. Go down to this Article sub Article 2 clearly states any government institution based on
its strategic plan shall prepare and implement short term, medium term and long term human resource plan.
It is with this intention that the government of Ethiopia set under Article 12 sub Article 3 vacancies may be
filled through merit based recruitment, promotion, transfer or employing on the basis of the human
resource plan. With this assumption, Article 13 sub Article 1 of the Ethiopian Federal Civil Servants
Proclamation (Proclamation No. 515/2007) positioned in filling of vacancies, there shall be equal treatment
among job seekers or civil servants in filling vacancies because of their ethnicity, sex, religion, political
viewpoint, disability, HIV/AIDS or any other ground.
Under this Article sub Article 2 there is also a brief that a vacant position shall be filled only by a
person who meets the qualification required for the position and scores higher than other candidates.
Notwithstanding these sub Articles, the 3rd sub Article illustrates that, in recruitment, promotion and
deployment preference shall be given to: feminine candidates, candidates with disabilities, and
members of nationalities comparatively less represented in the public office, having equal or close
scores to the other candidates. Similarly, to ensure the merit based recruitment and selection the
government asserted how vacancy announcement and examination for Recruitment will be conducted.

6. JOB ANALYSIS
Job analysis in the organization is conducted by using four major types of job evaluation methods to
determine compensation. These are: Job Ranking, Job Grading, Factor Comparison, and Point System
7. EMPLOYEE BENEFITS AND COMPENSATION
Ethiopian Electric Corporation provides a range of employee benefits and services in accordance with
Ethiopian HR proclamations and directives.
BENEFITS
The objective of the benefits facility is to motivate employees', increase job satisfaction and
enhance organizational image among others. The benefit package is subject to fund
availability.
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Ethiopia Government Pension Fund

As per Ethiopian Law, EEPC will monthly contribute to the Government of Ethiopia Pension Scheme
for all employees. The rate is 10% from EE and 8% from the employee. The pension fund shall be
managed by the Finance Department. All employees who have completed their probation period (of
forty-five or ninety days) are eligible for this benefit. Only regular staff members are eligible for this
scheme. All salary deductions will be shown on each employee’s pay bulletin.
Health Insurance
EEPC shall have an insurance scheme for employees and dependent families. EEPC will pay all initial,
enrolment, and annual premiums for a local health care plan on behalf of the employees and their
dependents. Upon hire, each employee shall complete a “dependents form” listing the names and birth
dates of all their eligible dependents. Dependents are defined as a spouse, unmarried children under
21-years-of-age, and children who, regardless of age, are incapable of self-support (proof must be
submitted). Employees and dependent families could get medical services from any recognized medical
organizations as long as they are within the limits for outpatient and inpatient care cover of the insurance
policy. All employees and their immediate dependent family members shall be entitled to
reimbursement of their medical expenses, as per the insurance policy. The organization shall not cover
any further medical expenses incurred by the employee. The Health Insurance plan will cover the
following for staff and their dependants):
1. Annual maximum benefit Birr 12,000 for employees and Birr 6,000 for dependents / year
(Doctor's fee / card and hospital bed charges are unlimited);
2. Maternity benefit up to Birr 1,000 for female employee and Birr 500 for female spouse / year;
3. Pregnancy check-up, up to Birr 1,000 for female employee and Birr 500 for female spouse /
year;
4. Delivery related expense for normal birth and CS delivery up to Birr 3,000 for female employee
and Birr 1,500 for dependents;
5. Eyeglasses benefit up to Birr 3,000 for employee and Birr 2,000 for dependent / year;
6. Dentures and/or dental filling up to Birr 4, 000for employee and Birr 2000 for dependent / year.
For reimbursement, the employee shall present valid receipts of treatments, prescribed medicines,
advised by the designator clinic’s physician, and medical certificate. For the employees joining the
organization midway during the calendar year, the benefit shall be calculated proportionally. There
shall not be carryover of the medical benefit from one calendar year to another calendar year. All
regular employees whose contract of employment is a year or more are eligible for this benefit. The
employee shall complete, sign and submit the Medical Insurance Beneficiary Nomination Form
Life Insurance

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EEPC shall establish a protection plan to cover accident and injury costs for its employees. Only regular
staffs (Full time (40 hrs per week), and par time workers working for >50% of their time (20-39
hours/week) are eligible for Life and Disability Insurance. The insurance for regular part time workers
will be prorated based on annual salary. The scheme shall provide a compensation for death, permanent
total disablement, temporary total disablement, and medical, surgical and hospital expenses incurred in
connection with an accident. Staff will have a group personal accident insurance. The benefit pays out a
total of 5 years’ salary in case of death by accident. Moreover, staff will be covered by a system of life
insurance. The life insurance benefit pays out Birr 400,000- or 2.5-years’ salary whichever is higher to
the beneficiary if all contingencies are met according to the insurer’s life insurance policy. In the event
that life insurance is denied by the vendor, EE is not liable for payment to beneficiaries. The Insurance
policy shall relieve the organization from liabilities stated as JOB RELATED ACCIDENT in the
labour Proclamation 377/2003 and the Ethiopian civil code for the management staff.
8. EMPLOYEE WORKING ENVIRONMENT: EMPLOYEE SAFETY AND HEALTH
The Ethiopian electric Power Corporation will implement a HSE Management system for the entire
workforce. This system will ensure that workers are not exposed to risks at workplace and that
all reasonable precautions protect their health and safety have been taken. The HSE system will
include appropriate training for all the workers; this training will be done by HSE department
during the engagement and in case of change of qualification, which require a different type of
induction. Changes of position/qualification will be effective with the completion of the due HSE
training.
The Corporation will:

a) Register employment accidents and occupational diseases and notify the labour inspections
of same;
b) Provide workers with protective equipment, clothing and other material and instruct them how
to use it;
c) Arrange at his own expenses for the medical examination of newly employed workers, as may
be necessary;
d) Ensure that the work place do not cause danger to the health and safety of the workers;

e) Investigate and identify the root causes of all accidents and implement appropriate
corrective actions;

f) Implementing proper monitoring systems of hazardous agents and proper control measures
(eliminating risk, PPE, etc.).
9. EMPLOYEE RELATIONS

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The organization maintains employee relations by Proclamation No. 1156/2019 LABOUR PROC.
Element of a Contract of Employment

1/ A contract of employment shall be deemed formed where a natural person agrees directly or
indirectly to perform work for and under the authority of an employer for a definite or indefinite period
or piece of work in consideration for wage;

2/ A contract of employment shall be stipulated clearly and in such manner that the parties are left with
no uncertainty as to their respective right and obligation under the terms thereof;

3/ A contract of employment shall specify the type of employment and place of work, the rate of wages,
method of calculation thereof, manner and interval of payment and duration of the contract;

4/ A contract of employment shall not be concluded for the performance of unlawful or immoral acts;

5/ The contract of employment shall not laydown less favorable conditions forth employee than those
provided for by law, collective agreement or work rules.
10. GRIEVANCE AND DISCIPLINES
Workers’ Grievance Management Mechanism is developed and presented in this section. The
mechanism shall ensure that all kinds of grievances can be raised to the appropriate levels of
management and can be addressed promptly. All types of workers involved in the project shall be
communicated of the WGMM at the time of recruitment and the measures put in place to protect them
against any reprisal for its use.
Workers’ Organizations
The Power Corporation f u l l y respects the freedom of association and collective bargaining in
accordance with Ethiopian Labor Law. The Power Corporation w i l l not discourage workers from
forming or joining workers’ organizations of their choosing.
Therefore, the Power Corporation cannot interfere with or discriminate against workers who choose to
organize; moreover, the workers representatives shall have full access to the management and
they shall be clearly informed about their legal rights.
Also the sub-Power Corporations have the right to organize and be heard at work through
collective bargaining. According to the Labour Proclamation N° 377/2003, art.125, Labour Unions
shall have the right to bargain a collective agreement with one or more employees or their
organizations. The law describes the matters concerning employment relationships and conditions of
work. Relations between employers (and their organizations) and workers’ organizations may be
determined by collective agreements. The contents of a collective agreement can involve:

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 Matters left by the provisions of Labour Proclamation or other laws to be regulated by collective
agreement;
 Conditions for protection of the occupational health and safety, as well as the manner of
improving social services;
 Workers’ participation in matters regarding promotions, wages, transfers, reductions and discipline;
Conditions of work, the procedure for making work rules and grievance procedures; to incentive
the involvement of the workers in the labour best practices;
 Arrangement of working hours and interval break-times;

 Parties covered by the collective agreement and its duration validity.

Demobilization
When the completion of the project is near, the reduction of workforce will be unavoidable. The Power
Corporation w i l l develop and implement a plan to mitigate the adverse impact of
demobilization. Before proceeding to the reduction, the Power Corporation s h a l l analyze all the
possible alternatives.
If the re-employment in the same site is not possible, the Power Corporation w i l l facilitate the
reemployment of the workers in Power Corporation’s other sites/projects. To this end, a list of the
workers to be reduced will be prepared and shared with other the Power Corporation’s projects, in
order to give opportunity to the workers to find another job inside the organization.
If the outplacement is not possible, the workers are informed on time according to the Labour
Proclamation Article 29 and Article 30 or a notice pay will be paid according to Article 34 and
Article 35 of the Labour Proclamation. This will help the workers and their dependents to
prepare psychologically and logistically for the post-work phase.

The notice payment will be compliant with the contract and the applicable law. After the termination
of the contract, a work certificate will be issued to the workers, according to the Law.
DISCIPLINARY MEASURES
Disciplinary measures can be taken on a worker in order to correct him/her from a bad behavior, to
protect the negative effect on the work and to warn others workers not to repeat these similar faults.
Before disciplinary measure is taken, the gravity of the fault made by a worker, his past behavior
and his jobs performance are to be carefully considered. There are three types of disciplinary
measures: oral and written warning, suspension and termination.
1. Warning Letter: means a warning communicated to the workers in a written form that clearly
indicate the wrongful action done by the worker and how many times the worker has been
previously formally warned.

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2. Suspension: It is a disciplinary measure which results in the suspension of the worker from
his/her assigned duties, without pay, for a set period of time. The suspension shall be given to the
workers only in serious cases when the misbehavior is done notwithstanding the repeated warning
received.
3. Termination: Repeated warning or suspensions received by a worker can constitute a
legitimate ground for a termination of the contract of employment without notice, as a result of
continuous and deliberated misbehavior or gross negligence which creates negative effects to the
normal activities of the project, according to the Labour Proclamation Article 27. The
employment can be terminated in case of serious breaches of safety regulation, or whatever
is provided by the Labour Proclamation N° 377/20.
11. CONCLUSION
Based on the data presented and analyzed from the analysis of organization document review conducted
with the human resource management of EEP, the following conclusion are reached to sort out the major
findings on the strengths and weaknesses in the compensation and benefit plan and its implementation in
the organization. Based on the conclusion's reached, recommendations are also forwarded for the
organization or concerned body to give attention and take the necessary measures in the area of suggestions
made to solve the identified problems and improve weaknesses in the compensation and benefit planning
system.
• When the frequency of revision of salary and overall payment structure of EEP is analyzed, it is found
that the majority of the employees said that the organization does not revise the payment structure of its
employees according to the rate increase in inflation of the country. This made most of the employees
disappointed that they could not afford the living cost with the current salary they get. In addition, the
response to the online feedbacks by the human resource manager revealed that unlike other Governmental
organizations, the EEP's Board of Directors have a mandate to revise the salary and benefit structure
accordingly with the rate of increase in inflation.

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REFERENCE
Europa Publications Limited (31 December 2022). Africa South of the Sahara 2003. Psychology Press. p.
405. ISBN 978-1-85743-131-5. Retrieved 2 November 2011.
Jump up to:a b "Mission". Ethiopian electric power . Retrieved 2 November 2011.
African Development Bank; Organisation for Economic Co-opAARAtion and Development. Development
Centre (15 May 2021).African economic outlook. OECD Publishing. p. 266. ISBN 978-92-64-02243-0.
Retrieved 2 November 2011.
Proclamation No 515/2006.The Right and duties of the Civil Servants
Tamru & et al, Ethiopian Labour Law, Kluwar Law School(2004)
Tecle Hagos, labour dispute settlement process, Mekelle University, faculty of law(unpublished)
Constitution of the Federal Democratic Republic of Ethiopia, Negarit Gazetta, 1st year No.1(1995)
Labour Proclamation No.377/2003, Negarit Gazetta, 10th year, No.12(2004)
Federal Civil Servants Proclamation No.515/2007, Negarit Gazetta, 13th year, No.15(2007)
Public Servants‘ Pension Proclamation No.345/2003, Negarit Gazetta, 9th year, No.65(2003)

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