HUMAN

RESOURCE
PLANING AND
MANAGEMENT
ASA 3102
 HRM SCOPE
 Introduction

 Job analysis
 Human resource planning

 Recruitment and selection

 Employee training and development

 Performance appraisal

 Employee reward and compensation

 Employee health and safety

 Industrial relations
 INTRODUCTION TO HRM
 All organizations need people
 No organization can exist or operate efficiently without the support of
people
 People add value to organizations by supplying organizations with
skills, knowledge and physical effort.
 Thus, people are resourceful to any organization hence called human
resource.
 Human Resource refers to people who supply organization with
knowledge, skills, abilities, commitment and effort to enable
organization achieve its goals and objectives.
 Human resources include people within the organization such as top
level managers, middle level managers and lower level employees.
 They are considered to be the most important resources or asset for any
organization.
 Other resources include; money, buildings, technology and information
 DEFINITION OF HRM
 HRM refers to a branch of management that focuses on managing
people or human resources in the organization
 It refers to collection or combination of practices put in place by the
management to manage and get the best out of the employees.
 It is a specialty within a broader field of management that attempts to
develop programs, policies, and activities to promote the satisfaction
of both individual and organizational needs.
 A strategic and coherent approach to the management of an
organization’s most valued asset-the people working there who
individually and collectively contribute to the achievement of its
objectives.
 IMPORTANCE OF HUMAN RESOURCES

 Human resource helps in utilization of other resources such as

machines
 Produce goods and services i.e. manage the transformation of inputs
into outputs
 Help to market the company goods and services
 Make decisions and plans
 Help to come up with new ideas and innovations in structures,
processes and competencies
 Build and maintain a correct organization public image
 Help to setup systems, policies and procedure that attract and retain
quality human resources
 STRATEGIC ROLE OF HRM
 To ensure effective utilization of Human Resource; This can be through training,

right placement, performance management etc.

 To attract and maintain talented or competent staff; This may be through good

recruitment or person organization fit, through effective rewards and other good

HRM practices.

 Managing employee commitment; Commitment looks at the willingness of

employee to identify with the goals and objectives of the organization and remain

loyal to the organization. A committed employee serves the organization all

heartedly. Managers can build employee commitment through open

communication systems, participatory performance systems and implementing

programs designed to increase the company’s mission and values

 STRATEGIC ROLE CONT..
 To develop human resources; This involves training and developing
employees at all levels while relating the development programs to the
needs of the organization and individuals so as to improve company
performance.
 To enhance employee motivation
 To sustain organization culture; The human resource specialist formulates
strategies and helps to get the values of the organization defined,
understood and accepted by workers.
 Managing changes in form of new strategies, processes and procedures ;
The HR practices influence the changing of employees’ attitudes towards
accepting organizational change, and manage resistance to change.
 Ensuring good working environment
 Performance management; This involves introducing systems that clarify
objectives at all levels in an organization as well as setting systems of
measuring performance at all levels in the organization.
 ROLE OF LINE MANAGERS IN HRM
 Line managers are those to whom individuals or teams directly report and
have responsibility to a higher level of management for those individuals
or teams.
 They are not HR specialists but are Heads of Departments, Supervisor or
Team leaders in other departments e.g. in Accounting department.
 Small businesses with few employees often have no HR Department or
specialist and the roles are performed by the owners and the line managers.
 It is common in small organizations to find a manager who is in charge of
finance is also in charge of HR administration.
 Larger businesses may have an HR specialist or even an HR Department to
oversee and coordinate their employee management policies and
procedures.
 Even where a company employs an HR Specialist, it is line managers who
have day-to-day responsibility for implementing HR initiatives.
 Recruiting and hiring talent to fill vacant positions in the department
 ROLE OF LINE MANAGERS CONT..
 Providing training and support to new hires in the department.
 Cross-training employees through job rotation so as to multi-skill staff in
the department
 Providing coaching and performance feedback to all departments or team
members.
 Communicating and ensuring understanding of functional or departmental
goals.
 Resolving conflict among members of the Department
 Guidance and counseling of staff
 Monitoring individual and team performance versus targets.
 Identifying the need for corrective actions.
 Ensuring quality standards for all processes.
 Evaluating overall team and individual performance and delivering the
performance reviews.
 Providing reports on productivity and other performance indicators to
management.
 CHALLENGES OF HRM TODAY
 Lack of employees commitment: Many employees want to get rich quickly and
therefore may not serve the interests of the organization. The challenge therefore is
how to harmonize the individual interests with the overall organizational objectives.
 Workforce diversity; a variety of differences between people in an organization
e.g. an increasing number of women, disadvantaged and minors joining the
workforce posing a challenge on management to accommodate such individual
differences
 Wide spread of unemployment; There are less white collar jobs considering the
number of people that qualify for them hence causing scarcity of workers with the
needed experience.
 Influence of trade unions and associations; there is increasing pressure of trade
unions on the management concerning the various interests of workers such as
salary increments
 Rights to privacy e.g. someone with AIDS should not be discriminated on those
grounds, even questions asked on interviews should be non discriminatory.
 Globalization; the process of interaction and integration among people, companies
of different nations. Many countries have opened their boarders and therefore
organizations continue to face challenges of expatriate labour, cultural shock, e-
workers etc.
 Changes in technology; This necessitates management to ensure their employees
are abreast with the recent trends which may be costly.
 JOB ANALYSIS
 Organizations are made up of different Departments which perform
different roles and provide different services to enable the organization
achieve its goals
 The Departments of an organization include; Human Resource
Department, Finance Department, Marketing Department etc.
 The roles and services of these departments is organized in form of
different jobs.
 For instance, the Finance department may have jobs like Director Finance,
Senior Finance manager, Finance controller, Finance Assistant etc.
 Job Analysis refers to the process of determining in detail the job related
information such as the duties and tasks, and specify the requirements
needed to perform on that job effectively.
 It involves collecting information related to a given job, examine that
information and preparing the Job description and Job Specification
 The process of collecting and analyzing information about jobs to write
job descriptions and specifications
 JOB ANALYSIS INFORMATION
Duties and Tasks; The basic unit of a job to be performed by the
individual as per the given expectations. Information to be collected about
these items may include: frequency, duration, effort, skill, complexity,
equipment, standards, etc.
Environment; The work environment may include unpleasant conditions
such as offensive odors and temperature extremes. There may also be
definite risks to the incumbent such as noxious fumes, radioactive
substances, hostile and aggressive people, and dangerous explosives.
Tools and Equipment; Some duties and tasks are performed using
specific equipment and tools. Equipment may include protective clothing.
These items need to be specified in a Job Analysis.
Relationships Supervision given and received. Relationships with
internal or external people.
Requirements; The knowledge, skills, and abilities (KSA's) required to
perform the job. While an incumbent may have higher KSA's than those
required for the job, a Job Analysis typically only states the minimum
requirements to perform the job.
 EXAMPLE OF DUTIES AND TASKS
OF FINANCE MANAGER
 Provide financial reports and interpret financial information to
managerial staff
 Advise on investment activities and provide strategies that the
company should take
 Maintain the financial health of the organization
 Develop trends and projections for the firm’s finances
 Manage the preparation of the company’s budget
 Liaise with auditors to ensure appropriate monitoring of company
finances is maintained
 METHODS OF JOB ANALYSIS
1. Observation
 This involves collecting data about the job or performance of employees
by directly observing them at work. To be useful and valid observation
should concentrate on job behavior. When observation is used data is
recorded either in narrative format or by using a checklist.
 Direct Observation of incumbents performing their jobs enables the
trained job analyst to obtain first-hand knowledge and information about
the job being analyzed.
2. Job analysis interviews
 This is a method to collect a variety of information from an incumbent by
asking the incumbent to describe the tasks and duties performed.
 Interviewing is a flexible method for all levels and types of job, and
generate descriptive data and enable job-holders to interpret their
activities.
 A good interviewer can probe sensitive areas in more depth.

 However, there is a potential of bias and exaggeration

 METHODS OF JOB ANALYSIS
CONT..
3. Questionnaire method
 This involves giving the incumbent a simple questionnaire to
identify job duties, responsibilities, equipment used, work
relationships, and work environment.
 A draft of the identified job duties, responsibilities, equipment,
relationships, and work environment would be reviewed with the
supervisor for accuracy.
4. Work dairy method
 In this method the job holder records in details their activities
everyday.
 If done faithfully, this technique is accurate and eliminates errors
caused by memory lapses the jobholder makes while answering
questionnaires.
 It should be noted that normally these methods can be used in
combination to enhance effectiveness of job analysis.
5. Review of the existing job descriptions
 PRODUCTS OF JOB ANALYSIS
1.JOB DESCRIPTION

Job description is a process of describing the job to be performed. The main

contents are the job purpose and the job tasks and responsibilities. It consists
elements like , the job title e.g. Finance Manager, The job location e.g. Kampala,
Supervision e.g. Reports to Director Finance, duties and tasks , Terms and conditions
of employment, Training and advancement opportunities, Job circumstances. Below
is a sample of job description form.
Name of the organization
Department Section
Job title Job grade
Job location: country, region,
district, project
Reporting to (title)
Subordinate (title)
Job purpose
Main tasks and responsibilities
Salary and other reward packages
 PRODUCTS OF JOB ANALYSIS
2. JOB SPECIFICATION

Job specification involves a definition of qualifications, experiences and competencies required by the

jobholder and any other necessary information on the special demands made by the job such as physical

conditions, unusual hours or travel away from home. Job specification It states the basic minimum

requirements for performance of a particular job including; Education level, Knowledge, skills, Working

experience, Personal characteristics and Physical requirement. Sample of job. Sample of Job specification
 Qualification, skills and experience

 BBA, BCOM, Acc, Finance

 Membership to professional bodies like CPA or ACCA

 MBA, M. Finance, M.Acc is added advantage

 8years experience with at least two years in a Managerial position

 Attributes

 Ethics and integrity

 Strategic and critical thinking

 Communication, Persuasion and collaboration

 PURPOSE OF JOB ANALYSIS
 Determining Training Needs: Job Analysis can be used in training/"needs
assessment" to identify or develop; training content, assessment tests to
measure effectiveness of training, equipment to be used in delivering the
training, methods of training (i.e., small group, computer-based, video,
classroom...)
 Reward and compensation: Job Analysis can be used in compensation to
identify or determine; skill levels, compensable job factors, work
environment (e.g., hazards; attention; physical effort), responsibilities (e.g.,
fiscal; supervisory), required level of education (indirectly related to salary
level)
 Selection procedures: Job Analysis can be used in selection procedures to
identify or develop: job duties that should be included in advertisements of
vacant positions, appropriate salary level for the position to help determine
what salary should be offered to a candidate, minimum requirements
(education and/or experience) for screening applicants, interview
questions, selection tests/instruments (e.g., written tests; oral tests; job
simulations), applicant appraisal/evaluation forms etc
 PURPOSE OF JOB ANALYSIS CONT’D

 Performance Review: Job Analysis can be used in performance review to

identify or develop: goals and objectives, performance standards, evaluation
criteria, length of probationary periods, duties to be evaluated.
 Career development: job information helps firms to chart channel of
promotion, and provides employees with that concerning opportunities and
requirements for career within the organization.
 Job design and reengineering; if employers with to adapt to any special
group e.g. the physically handicapped, they must usually alter the content of
certain jobs. Job analysis will always provide information that will facilitate
changing of jobs to suit the needs of employees with special characteristics.
 Induction and orientation; for new employees, a job description is vital
for orientation purposes etc
 HUMAN RESOURCE PLANNING
 Human resource planning refers to a range of tasks designed to
ensure the organization has the appropriate number of Human
Resources, having the right skills, doing the right activities in the
right place, and the right time.

 Estimating the future HR demands and supply and laying down

strategies for meeting them

 The goal is ensuring that the demand and supply of HR is at

equilibrium all the time
 CHARACTERISTICS OF HR PLANNING
 Human Resource Planning is a continuous process
 Human Resource Planning is a complementary process to
overall organizational planning
 Human Resource Planning involves projection/forecasting of
the future human resources needs so that an adequate and timely
provision of human resources can be made.
 The basic purpose of Human Resource Planning is to determine
the right number of people required to do organizational
activities.
 IMPORTANCE OF HUMAN RESOURCE PLANNING

Determining recruitment needs. Looks at the gaps within the organization

that call for recruitment. The organization through planning can identify HR
shortages, fill up these shortages at the right time, using well-planned selection
techniques.

Training needs identification. A training need refers to a difference between

what employees are able to do and what they ought to do. In the process of
HRP, the planner can identify certain training needs, which can be based upon
to improve employee skills.

Anticipate human resource redundancies and introduce redundancy

schemes. A redundancy scheme is a work arrangement where employees
without work in a given period, are put on hold during that time and rehired
when there is work. HRP helps the organization to predict whether at a certain
time in future there will be need for redundancy schemes due to labour surplus.
 IMPORTANCE OF HUMAN RESOURCE PLANNING CONT..

Determining human resource costs. Through Human Resource Planning, the

organization can forecast the budget or HR costs in form of salaries, housing,
transport, medical etc.

Accessing future premises requirements; HRP helps managers to establish

the need for premises like office space and other buildings so as to enable
employees carry out their tasks in the right place.

Determining and planning retirement; The Co. can plan for whom, and
when to retire specific HRs, especially planning for early retirement.

Means of good industrial relations. HRP aims at improving productivity.

Through improved productivity the organization can make profits that are
fairly distributed among the managers and workers. This is likely to reduce
industrial unrests and promote industrial democracy.
HR PLANNING ACTIVITIES/PROCESS

 Reviewing corporate plans

 Analyzing and interpreting the environment
 Conducting HR Audit
 HR forecasting
 Action planning
 Evaluation
 PROCESS CONT’D
Reviewing corporate plans
Before Human Resource Planning can be done, the organization needs to
review or understand the vision, mission and objectives of the organization.
This is because changes in the future direction of the organization may involve
substantial shifts in the types of employees required and the work to be
performed.

Environmental analysis and interpretation

This involves the systematic identification and analysis of key trends and forces
in the external environment having a potential impact on the management of
the Human Resources. Changes taking place in the technological, economic,
sociocultural, legal/regulatory, education, and labour market environments are
monitored for their impact on Human Resource strategies and programmes.

Human Resource Audit

This is the review of the current Human Resource status. The HR inventory
must be prepared. The required information for Human Resource Planning
includes skills, knowledge, experience, age etc.
 PROCESS CONT’D
Human Resource forecast

This is done in order to estimate the labour requirements of the

organization at some time in the future and from where these resources will
be obtained. There are two types of Human Resource forecast i.e. demand
for labour and supply of labour.

a) Human Resources demand forecast

This is concerned with estimating the quantity and quality of Human

Resources needed to meet the objectives of the organization.

b) Human Resource supply forecast

This measures the number of people likely to be available from within and
outside the organization i.e. internal and external labour markets.
 PROCESS CONT’D
Action planning
In case of a shortage
 Recruitment i.e. motivating potential applicants to apply for vacancies.

 Training of existing Human Resources i.e. imparting more skills and

knowledge and attitudes to enable existing HRs to fill vacancies if any.
 Succession planning determining who should fill particular positions from
among the existing Human Resources e.g. promotion.
In case of surplus of Human Resources
 Laying off some staff deemed unsuitable to continue working for the
company
 Job rotating some workers to work in other departments where there is
more work.
 Dismissing particular employees who have been on several warnings.

 Instituting redundancy schemes i.e. some workers are put on hold for
some time until such a rime when the organization has work for them.
 Retirement schemes- a human resource manager can identify Human
Resources due for retirement and retire them. The manager can also
institute voluntary retirement schemes.
 PROCESS CONT’D

Evaluation of Human Resource Planning (HRP)

Evaluation is aimed at establishing the extent to which

HRP objectives have been achieved. The planner should
evaluate the extent to which the Human Resource action
plan has been achieved i.e. whether retirement schemes
have been developed, some staffs have been dismissed,
downsizing has taken place or new staffs have been hired.
 CHALLENGES OF HR PLANNING

 Lack of top management support

 Limited Human Resource data due to failure by most organizations to set
up Human Resource Management Information System
 Inadequate skilled personnel to carry out the planning process
 Changes in economic conditions, technology, marketing conditions and
labour force condition which tend to make long forecasts unreliable
 Trade unions agitation to spearhead their position especially in the face of
structural adjustments
 Limited resources especially funds and time to finance and carry out the
activities of HRP
 EMPLOYEE RECRUITMENT AND SELECTION

Topics

1. Definition and Purposes of recruiting

2. Sources of recruitment(internal and external)

3. Methods of recruitment

4.Selection
 Definition and Purposes of Recruiting

 Recruitment refers to the process of identifying suitable candidates

and encouraging them to apply for jobs in the organization
 Communicates the available job opportunities
 It helps to attract a sufficient number of applicants to allow an
optimal selection ratio.
 Aids in meeting EEO and diversity goals.
 Maintain goodwill and positive image of the company.
 Internal source of recruitment

FILLING VACANCIES FROM WITHIN

Pros Cons
 Familiarity may increase selection  Current employees may not be
accuracy. prepared.

 Employee motivation to perform  May lead to a “ripple effect”, as

well and develop skills. one vacancy filled from within

causes another vacancy, which
 Quicker and lower staffing costs.
increases staffing costs.
 Lower training and adjustment
 May lower the influx of new
costs.
ideas and innovation.
 External source of recruitment

FILLING VACANCIES FROM OUTSIDE

Pros Cons
 Larger number of applicants
 Increases staffing costs.
lowers selection ratio and
raises hit rate. (The “hit rate”
 Increases training and
is the percentage of people adjustment costs.
hired who turn out to be good  Takes longer to fill
employees). vacancies.
 Prevent ripple effect.  May lower employee
 May increase innovation. motivation to perform
well and develop skills.
 Aid in meeting diversity
goals.
 RECRUITING METHODS

1. Referrals 3. Agency
 Employee Referrals  Public agencies
 Outside Referrals  Commercial Agencies
 Former Employees  Executive Search

2. Direct Contact
 Unsolicited applicants or 4. Advertisement or
direct Application Media
 Vocational-Trade Schools  Newspapers
 College Recruiting  Special Publications
 Internet
 Radios
1. REFERRALS

Employee Referrals – Quick source of applicants when there are a

small number of vacancies; excellent RJP and screening; all
types of employees; low expense; may not help with diversity
goals.

Outside Referrals & Former Employees – Similar to Employee

Referrals; may not have as good RJP and screening; low
expense.
2. DIRECT CONTACT

Vocational-Tech Schools – Good source of

specialized, skilled employees; good screening
when aptitude scores and training performance
is available; research shows high quality; low
expense.
2. DIRECT CONTACT
Internet – Covers wide range of jobs; readily
available websites for commercial and
government jobs; quick response; potential for
good RJP and screening; moderate-to-high cost;
“point of contact” recruiting on customer
websites.
College Recruiting – Good for large number of
applicants with appropriate education; best for
entry level jobs; often low RJP, screening, and
quality; very high expense.
3. AGENCY
 United States Employment Service (USES)
Covers wide range of jobs; located in all states
(run by states); good screening - conscientious
(not for profit) and use of testing; moderate
volume and low expense.
 Commercial Agencies – All types of jobs; often
low RJP and screening; focus is on placement
for a fee; trial and error in finding a solid
agency; high expense.
3. AGENCY

 Executive Search Firm – Specialized source

of higher level managerial and professional
employees; may risk loosing own employees
as many search firms perceive all employees as
‘fair game’; often low RJP and screening; very
high expense.
4. MEDIA
 Newspaper Adverts – High volume; relatively
fast; often low RJP; requires follow-up
screening; can have high screening expense for
large volume of applicants; research indicates
low quality.
 Special Publications – Moderate volume;
relatively fast; may indicate strong interest and
commitment to career field of applicants;
moderate expense.
 SELECTION METHODS

1. Interviews

2. Psychological Tests

3. Bio data forms Interview

4. Assessment centers

5. Physical and health examinations

6. References and Background Checks Etc

 SELECTION METHODS CONT..
 Assessment centers: This involves subjecting applicants in a simulated work
situation so that behaviors and performance on the job can be observed and
evaluated. Normally applicants are invited to the organization premises and put into
doing a series of activities related to the actual job e.g. role playing, focus group
discussion, and problem solving.

 Bio-data: This is a collection of personal information about the job applicants. They
are asked to fill and application bank for describing their personal details.

 Letter of recommendation and reference checks: This is where information about

the applicant is sought from people who know him or her say former employers, co-
workers, and teachers or lecturers from schools where the candidate studied from.
 SELECTION METHODS CONT..
INTERVIEW:
This involves an interaction between a candidate and a panel of interviewers.
It is a selection method designed to predict future job performance on the
basis of applicants' oral responses to oral inquiries. It is the most widely used
technique of selection. Managers’ are extremely reluctant to hire any person
without opportunity for face to face interaction.
 Structured interviews: Here the questions that are asked are preset or
standardized which are posed to all interviewees. The candidates are asked the
same questions in the same order to achieve consistency in the assessment.
 Unstructured interviews: In this form of interview candidates are asked
question in different format. The interviewee does much of the taking and
questions may be derived from what he or she says and the feelings and
perceptions of the interviewer.
 Situational interviews: In this case the questions that are asked are
consistent with the requirements of the job. The questions are job
performance based. Candidates are interviewed about what actions they
would take in various job-related situations.
 SELECTION METHODS CONT…
Advantages of interview technique
 Useful for determining if the applicant has requisite communicative or
social skills which may be necessary for the job
 Interviewer can obtain supplementary information

 Allows the applicant to ask questions that may reveal additional

information useful for making a selection decision
 The interview may be modified as needed to gather important information

Disadvantages of Interview Technique

 Subjective evaluations are made

 Decisions tend to be made within the first few minutes of the interview
with the remainder of the interview used to validate or justify the original
decision
 Interviewers form stereotypes concerning the characteristics required for
success on the job
 Research has shown disproportionate rates of selection between minority
and non-minority members using interviews
 Negative information seems to be given more weight
 SELECTION METHODS CONT…
Psychological tests: a test is a yardstick for making employment decision.
Tests are used to acquire numerical scores that can be used to draw conclusion
about an individual. The purpose of this technique is to give an objective means
of measuring individuals on merit. Common tests that are administered are;
Intelligence tests; these are the most commonly used tests .They are believed
to measure a combination of things or factors from the applicant e.g. memory,
reasoning capacity, etc. they are based on the assumption that bright people can
learn any job more quickly than those who are not.
Personality tests: these seek to measure and discover personality
characteristics which may affect job performance. Personality tests typically
measure one or more of these: extroversion, emotional stability, agreeableness,
conscientiousness, and openness to experience.
Aptitude tests: These are designed to predict the potential that an individual
has to perform on the job. They measure how trainable an individual is.
 PLACEMENT
Placement
 After an employee has been hired, he or she must be placed on the right job.
Placement therefore can be understood as the allocation of new employees to
rightful teams, jobs, and departments.
 It is a continuous process that may start at the time the new employee starts
work.
 The capacity of the employee can be utilized if she or he is placed in the job
for which he is most suitable.
 The Principles of placement include;
 Individuals should be placed on the job according to the requirements of the
job.
 The employee should be made well aware of the working conditions
prevailing in the industry and all things related to the job.
 The job should be offered to a person according to his qualifications.
Placement should neither be higher nor lower than the qualification.
 The placement should be ready before the reporting date of the newly
selected person.
 ORIENTATION AND PLACEMENT
 Orientation Service – This function serves the purpose of acquainting
new employees in an the organization environment with the facilities,
challenges and problems and prospects in their new setting. It is a
guidance service that allows the Managers to make the new staff
psychologically stable in the new environment (new organization)
because they will be meeting with new set of people, administration,
rules and regulations and environment which may require adjustment
for them to be able to cope perfectly.

 The orientation process may involve several phases depending on the

circumstances; new employees, promotional employees or, employee
needs. Each employee should be oriented according to their position as
well as amass orientation that includes general information that pertains
to everyone.
 ORIENTATION CONT’D
Some of the issues which may be highlighted include the following;
 Introduction to the company/Outlining goals and objectives of the
organization/ Review of the organizational history, products/services
 Outlining organizational rules, policies, procedures
 Communicating employee benefits
 Completion of employment documents
 Review of employers expectations
 Setting of employee expectations
 Introduction to fellow workers
 Explaining employee recognition program
 Introduction to the job and daily work routine
 How the employee job contributes to success of the organization
 Meeting with key persons within the organization
 Tour of the organizational facilities

Qn. Explain the relevance of each of the above information to new employees
 TRAINING AND DEVELOPMENT

 Employee training is the process through which planned

programmes are undertaken to improve employee knowledge,
skills, attitudes and social behavior

 Development is a career bound organizational

arrangement/lifelong process for its employees to acquire
generalized managerial and technical skills and knowledge so as to
achieve organizational goals
 RATIONALE FOR TRAINING
 Improving employees’ skills knowledge and attitudes so that they can perform better.
 Increasing customer satisfaction in products provided
 Helping people to develop within an organization so as to meet the future human
resource needs of the organization from within
 Reducing learning time for employees who are starting new jobs so that they can be
competent as quickly as possible
 Creating management by exception where trained human resources has the ability and
capacity to diagnose and analyze the day to day task requirements without constant
consultations from supervisors. He or she intervenes in their operations only at critical
task requirements.
 Coping with rapid scientific and technological developments
 Reducing the costs of supervision that is if the employees are given proper training, the
responsibility of supervision is lessened. A well-trained employee is self reliant in his
work because he knows what to do and how to do it. Though, training does not
eliminate the need for supervision, it reduces the need for detailed and constant
supervision.
 Need for production of new products or services by a firm, may also call for
enhancement of employee skills, knowledge and attitudes.
 Creating and maintenance of a motivated workforce with in an organization
 Increasing employee awareness on matters concerning the organization such as values,
beliefs, policies, rules and procedures.
 INDICATORS OF THE NEED FOR TRAINING
 Decline in performance
 Fall in Decline the level of customer retention

 Complaints from customers

 venturing into a new market

 New technology

 High rates of accidents

 Individual development plans

 Need to develop new leaders

 Development of new policies, systems, procedures

 New recruits
 TRAINING PROCESS
Training needs Assessment
 Methods of training needs analysis e.g. Job Analysis by examining in detail the
content of jobs, the performance standards required in terms of quality and output
and the knowledge, skills and competence’s needed to perform the job competently
and thus meet the performance standards; Performance Appraisal: This is prime
source of information about individual training and development needs. Levels of
training needs analysis
Designing and implementing the training program
 Determining training objectives; These are expectations of both parties the learner
and the trainer and are usually derived from Training Needs Assessment process.
 Training environment; It could be within the organization or outside the organization
e.g. in a conference room
 Training methods; These are the most appropriate training environment, whether
internal on the job methods e.g. coaching, mentorship, delegation or external off the
job methods e.g. case study, lectures
 Training facilitators; Facilitators’ particulars: in terms of their names, academic
qualifications, experience and their physical addresses among others.
Evaluation of training how the training will be evaluated in a comparison of training
objectives and training outcomes; It is based on the reaction of the participants,
Learning, Behavior and Results
 CHALLENGES OF TRAINING

 Training can be costly; if not well planned in advance

 Increases employee’s chances of leaving the organization
 If not well planned during the training period the organization may
experience production gap.
 Employees may be resistance to participate in training.
 Failure to get the right trainers
 Appropriate training place
 Appropriate training approach/method
 Regulating training and the organization's routine activities
 Employees’ attitude towards training
 Identifying the right staff to be trained
 PERFORMANCE APPRAISAL
 Performance appraisal is a process of measuring and evaluating
behaviours and assessing how well it matches expectations.
 Performance appraisal is a systematic description of
employees’ relevant strengths and weaknesses.
 Appraisal aims at evaluating the extent to which the individual is
achieving the objectives of the given job, in relation to the
objectives set by the departments they work in.
 Appraisal therefore is done to assess how well the individual
performs on allocated tasks in order to identify their
shortcomings and correct them.
 IMPORTANCE OF PERFORMANCE APPRAISAL
 Provide a continuous record of performance by which an employee’s
progress or lack of it can be judged
 They indicate an employee’s capacity /incapacity to perform their jobs.
 They indicate the employees suitability for other jobs in the same or other
departments
 Used as an aid in making internal staff adjustments (lay offs, transfers,
promotions)
 Provides feedback to employees and thereby serves as a means of personal
or career development.
 When the development needs of employees have been identified,
Performance Appraisal results can help establish specific training needs and
objectives
 Performance levels are used as a basis for making reward and compensation
decisions.
 Provides feedback for discussing employee strength and weaknesses.
 It also enables managers to report on employee potential for advancement
to higher positions within the organization.
 METHODS OF PERFORMANCE APPRAISAL
Graphic Rating Scales
 This is the simplest and most common technique for appraising
performance.
 The Manager designs a rating scale that lists a number of traits and
factors that are relevant to performance.
 The employees are rated by identifying a score that best describes his/her
level of performance. There’s a space on the form for the supervisor’s
comments.
Forced distribution This is where the rater establishes performance
standards or percentages, so that the rates are placed according to their
performance levels.
Critical Incident Method
 The supervisor keeps a record of uncommonly good or bad work-related
behaviors which may be discussed with employee at pre-determined
times.
 This is useful for identifying specific examples of good and poor
performance. The supervisor can then plan how to correct the
deficiencies.
 METHODS OF PERFORMANCE APPRAISAL CONT’D

Narrative forms
 Here the raters describes in writing an employee’s strengths and
weaknesses and potential.
 The rater also makes suggestions for improvement.
 This method assumes that the rater is very knowledgeable about the
employee’s performance.

Paired comparison method

 A comparison regarding how well each performance trait is performed
to all other employees until a comparison of how well one employee
performance as relative to each of the other employee
 PERFORMANCE APPRAISAL ERRORS
Leniency Error
 This occurs when an evaluator consistently evaluates the employee at a higher
end.
 The appraisal tends to give employees either extremely high rating.

 This can be solved by having a clearly defining characteristics or dimensions of

performance
Central tendency
 It’s a performance rating error in which all employees are rated above average
and there is reluctance to assign either extremely high or low ratings
Halo effect
 A person who’s rated highly on one characteristic is subsequently rated highly on
other characteristics
 This is purely on the basis of the original impressions

Severity
This is the tendency for raters to be harsh or strict when scoring others.
Central tendency Error
This occurs when raters tend to give average scores after failing to work hard
enough at the detailed performance data
 PERFORMANCE APPRAISAL ERRORS
Contrast effect
 This is an error committed when a person is rated in comparison with others.
Therefore the true rating is not obtained.
 Performance appraisal in which an employee’s evaluation is biased either upward or
downward because of comparison with another employee just previously evaluated
e.g. an average employee may appear especially productive when compared with
poor performance. This occurs when raters are required to rank employees.
Recency Error
 This refers to the tendency for evaluators to be influenced by recent employee
behaviors such as the month preceding the review.
 The rater bases largely on the recent behaviors rather than behavior through out the
whole appraisal period.
 This can be solved by having many raters routinely document employee
accomplishments and failures through out the whole appraisal period.
Similar to me error
 This is where the rater inflates the evaluation ratings of the employee because of a
mutual personal connection, that is, having something in common, for example
race, religion
 TYPES OF PA/ WHO SHOULD
APPRAISE

 Clients
 Peer appraisal
 Self appraisal
 Subordinates
 Immediate supervisors
 Appraisal committee
 360 degrees approach
 CHALLENGES OF PERFORMANCE APPRAISAL

 Supervisors are often reluctant to prepare periodic appraisals

 In practice, performance appraisal is often made recorded filed and
never used.
 Unrealistic performance expectations
 Supervisors’ hesitation to judge fellow workers and commit their
views in writing
 lack of skills on how to handle the exercise
 Role conflict; the supervisor is expected to be both a judge and a
counselor.
 There is often lack of feedback
REWARD AND COMPENSATION

By the end of this topic, the learner will be able to;

 Define the concept of employee reward and compensation
 Describe the different forms of employee reward and
compensation and give examples of each form
 Discuss the factors considered in determining employee reward
and compensation
 OVERVIEW
 Employee reward and compensation refers to all forms of payment
that an organization provides to its employees in exchange for their
contribution.
 It can also refer to all outcomes that an employee gets as a result of
working with a given organization.
 Employees (Human resources) contribute ideas, skills, commitment,
and physical effort towards the organization goals and objectives.
 In exchange for their contribute they receive some thing of value
from the organization. What employee receive in exchange for their
contribution is what is called employee reward and compensation
 REWARD VS COMPENSATION

 The term reward and compensation are normally used

together to refer to all forms of payment given to
employees in exchange for their compensation
 Most scholars do not emphasize the difference between
the two.
 However, for learning purpose, lets note the slight
difference between the two terms much as we shall also
not emphasize it
 REWARD VS COMPENSATION CONT’D
 Compensation means all payments (monetary or non
monetary) an employee should be given for his contribution
to the organization.
 The size and type of Compensation depends on the job
requirements or level and may not necessarily vary with
performance. Jobs at the same level and under similar
conditions should be given same compensation
 Compensation includes basic payments (such as a salary)
and all benefits like medical services.
 Reward on the other hand is a monetary or non monetary
recognition given to an employee for better performance,
meaning, a reward may not be regular. One will get it for his
extra ordinary performance
 FORMS OF EMPLOYEE REWARD AND COMPENSATION

Rewards and compensations may take different forms and

these forms include;
1. Broadly
 Financial rewards and compensation

 Non Financial reward and compensation

2.Specifically
 Wage

 Salary

 Benefits

 Incentives
 NON-FINANCIAL PAYMENTS

 All non-monetary outcomes that an individual gets out

of his employment
 They arise from the work and the work environment
itself
 They include recognition, responsibility, meaningful
work, autonomy, opportunities to use and develop
skills, career opportunities and work life balance
 SALARY
 A standard pay that an employee gets from an employer at a
specific time. A salary has been paid on a monthly basis
since time immemorial.

 The rate is determined at the stage of job offer or by pay roll

of the firm

 It is normally paid to white collar workers. e.g. managers ,

accountants e.t.c

 Organizations manage employee salaries through a salary

scales that may be adjusted periodically.
 SALARY CONT..
 Salary:- refers to weekly or monthly remuneration paid to white
collar workers at a fixed rate.
 Wages are paid to workers on an hourly basis or piece rate e.g. blue
collar jobs.
 Incentives are payments offered to employees as a way of
stimulating increased output i.e. rewarding performance that is up
and beyond performance expectations
 Benefits:- are payments or services rendered to employees to
supplement their wages and salaries aimed at increasing commitment
and loyalty.
 WAGES
 An amount of money paid to employees on the basis of
amount of work done or time spent on the job.
 Unlike a salary which is standard, a wage varies
according to the amount of work done or the time spent
on the activity
 Applicable to jobs with quantifiable tasks. E.g
construction
 An organization can adopt either a time rate or a piece
rate to manage wages of employees
 INCENTIVES

 Incentives are payments offered to employees as a way of

stimulating increased output
 It is about rewarding performance that is up and beyond
performance expectations.
 It includes financial or non-financial payments aimed at
encouraging excellent performance
 E.g.; recognition certificates, profit and gain sharing, bonus
payments, overtime allowances.
 BENEFITS
 Benefits are payments or services rendered to employees to
supplement their basic pay and increase employee commitment
and loyalty

 Benefits Include financial rewards that are not paid directly in cash
to the employee

 E.g. childcare, healthcare, health club membership, life insurance,

accommodation, company vehicle, transport to/from work,
subsidized meals
FACTORS TO CONSIDER IN REWARD AND COMPENSATION

 Company capacity
 Productivity of employees
 Cost of living
 Competition in the labour market
 Job requirements
 Collective bargaining agreements
 CHARACTERISTICS OF AN EFFECTIVE REWARD &
COMPENSATION SYSTEM

 Fair and fairly applied

 Incorporates interests of employees
 Performance based
 Well communicated
 Aligned to the organizational culture and values
 Evaluate continuously;-rewards should be monitored so that
it stays relevant to both the employees and the company.
 Distribute Awards Fairly and Equitably—Employees need to
believe that the program is fair.
 Connect the Reward’s Value to the Employee—Your
employees need to value and feel the reward is meaningful.
 CHARACTERISTICS OF AN EFFECTIVE REWARD &
COMPENSATION SYSTEM

 Link the Reward to Bottom Line Results

 Gather Commitment from Management—All of
managers and executives should understand the
program’s ins-and-outs. This includes;.
 BENEFITS OF A GOOD REWARD SYSTEM

 Helps to attract and retain quality human resources.

 Recognition symbol for services rendered to the organization.
 Motivator for future employee performance- related goal attainment to
increased pay.
 Satisfying employee personal needs.
 Reduce absenteeism and tardiness.
 Reduce influence of trade unions
 Improve the company image and reputation
 Comply with the existing labour legislation
 ROLE OF LINE MANAGERS IN REWARD
AND COMPENSATION
 They are directly responsible for awarding non-financial rewards
(recognition, praise, promotion etc)
 Mainly concerned with Communicating matters of rewards and
compensation e.g. about the benefits, and the possible salary increments
 Facilitate performance-based pay through monitoring employees’
performance
 Participate in job evaluation for determining compensable factors
 Carry out appraisal recommendations e.g. accelerated pay, promotions,
further development.
 Coaching employees and providing feedback
 HEALTH AND SAFETY

 Overview of Health and safety at work

 Rationale for health and safety at work
 Health & safety management responsibility
centers
 Accident and accident management at work
 Stress management at work
OCCUPATIONAL HEALTH AND SAFETY

 Overview of Health and safety at work

 Rationale for health and safety at work
 Health & safety management responsibility centers
 Accident and accident management at work
 Stress management at work
 OCCUPAIONAL HEALTH AND SAFETY
 With the possible exception of sleeping, people spend more time at
their jobs than any other activity in life (and sometimes these two
activities overlap!)
 If a person is unhappy at work for 8 hours a day, the residual effects of
this unhappiness will affect the quality of that person´s family and
leisure life as well.
 Managers today emphasize employee healthy and safety at work as a
way of enhancing productivity; A healthy employee is a productive
one
 Employee health is concerned with employees medical or physical
wellbeing, social and psychological wellbeing as well.
 Safety is basically concerned with preventing work related injuries
and accidents
 Safety refers to activities undertaken to safeguard or protect
employees from injuries or accidents at the workplace.
 HEALTH AND SAFETY ENVIRONMENT OR
CONDITIONS

Employee health can further be understood by examining health and safety

work environment or the conditions of the work in the organization. The
conditions of work can be categorized as; physical, chemical, biological,
temporal and psychological.

1.Physical conditions

The physical working environment includes location and design of the building,
parking features, amount of light and noise coming into the work place.

a)The design and size of the office

The design and size of the office(s) affects employees’ job satisfaction and
productivity. For example the layout of offices can affect the behavior of managers
who rely on spontaneous meetings with other managers as a way of obtaining
information or solving problems.
 HEALTH AND SAFETY ENVIRONMENT OR CONDITIONS
CONT..

b)Noise
Noise in the work environment makes employees irritable and nervous.
Certain loudness levels can be threatening to hearing. Hearing loss is a
recognized job hazard for workers like airport personnel.
c)Illumination
Continued exposure to inadequate light while reading or performing
detailed operations can be harmful to one’s sight. Research shows that
inadequate lighting is a source of stress and constant exposure to dim
light can have a negative impact on job performance.
d)Temperature and Humidity
Some people are happier and more hardworking in cold weather whereas
others prefer hot weather. Studies have shown that uncomfortable
temperature and humidity levels can influence the quality and quantity of
work performed. Production can slow down under extremely hot
conditions.
 HEALTH AND SAFETY ENVIRONMENT
OR CONDITIONS

e) Colour

In industry, colour can provide a pleasant working environment and can aid with
safety e.g. colour can be used in factories as a coding device that is fire
equipment can be yellow while danger areas can be red. This allows for such
equipment and areas to be quickly identified.

2. Biological conditions

This is basically concerned with the cleanness of the environment. Biological

agents that may be found in the unclean working environment include bacteria,
parasites, viruses etc. These may thrive in the working environment if the
conditions prevailing in that environment are conducive for their survival. Some
workers may be exposed to certain diseases through foods taken at the place of
work.
 HEALTH AND SAFETY ENVIRONMENT OR
CONDITIONS

3.Chemical conditions

In many organizations, workers handle potentially dangerous, toxic substances in

the course of doing their work i.e. the degree of risk of handling any substance will
normally depend on the magnitude of the exposure to that substance.

4.Temporal conditions

These can be described in terms of hours of work and rest pauses.

a)Hours of work

The number of hours worked daily or weekly and the amount of rest allowed during
working hours are potential sources of improved satisfaction and productivity of
employees. Studies have demonstrated that the longer the workday, the lower the
actual production per hour. Employees adjust longer hours by working at a slower
rate.
 HEALTH AND SAFETY ENVIRONMENT OR
CONDITIONS
Work schedules such as the four day work week, Flexible working hours etc
can be adopted

b)Rest pauses

The potential benefits of formal rest pauses include increased morale, reduced
fatigue and boredom, improved attitudes of workers towards the employer.

5.Psychological conditions

These relate to satisfaction, meaningfulness, and motivation derived from the

work performed. Work must allow the individual to use a variety of skills, do
significant work, and complete tasks, get feedback and have autonomy so as
to avoid boredom, monotony, fatigue and less efficient production.
 RATIONALE FOR HEALTH AND SAFETY
 OHS is not only a major component of the HRM function, but increasingly is
associated with the achievement of operational efficiencies and competitive
advantage (Boyd, 2003).
 It helps to maintain an environment that facilitates efficiency at the workplace
 Creation of morale or motivation among employees
 The public image of a firm will also be improved if systematic H&S programs
are in place
 To operate with in the legal requirements
 Less work stoppages and interruptions or absents
 Avoids unnecessary costs such as compensation for injuries, legal suites etc.
 Reduced labour turnover
 Better industrial relations
 MANAGING HEALTH & SAFETY
Role of Employer
 Organizations should start up health and safety committees in places of work to
handle health and safety matters
 Management should encourage an open door policy which encourages workers
to report incidences that are likely to lead to occupational accidents and diseases.
 There is need for regular maintenance tests to check on the conditions of
equipment and also the premises
 Recognizing outstanding achievement of employees who have engaged in safe
work practices
 Analyzing accident trends; this involves keeping records and compiling a
summary of work related injuries and illnesses.
 Provide Protective wears

 Comprehensive safety training for new employees

 Establish Health and safety policies

 Mark potentially dangerous areas

 Supervise on a regular basis

 Food at the work place should only be provided in consideration of hygiene and
safety.
 EMPLOYEE/EMPLOYMENT RELATIONS

 The importance of effective employment relations

 Perspectives of employment relations
 Unitary
 Conflict
 Communication programs
 Fair treatment programs
 Trade/labour unions and employers associations
 Management of employment relations
 OVERVIEW OF EMPLOYMENT RELATION

 In general, employee relations or employment relationship is the

study of the relationship between employees as well as employer
and employees.
 The aim is to find ways of resolving conflicts and to help in
improving productivity of the organization by increasing
motivation and morale of the workers.
 It considers both the unionized employees, and the non unionized
employees
 Unlike industrial relations that focused on unionized workers ,
employee relations or employment relationship today goes
beyond the collective bargaining level to include individual
employees who may not be members of trade unions.
 IMPORTANCE OF EFFECTIVE EMPLOYMENT
RELATION

 To ensure effective communication

 To encourage a positive dialogue between employers and individual or group
employees
 To effectively inform employees about their rights and what to do in case of
discrimination.
 To ensure Justice and fair treatment of all employees
 To create a good working relationship at the workplace
 Settling grievances and individual dissatisfaction
 To increase motivation of the workers
 To enhance productivity at both the individual and the organization level.
 Management of employee discipline
 It enhances teamwork at the workplace
 Creation of employer brand or public image
 It helps to enhance employee participation and involvement in decision making
 PERSPECTIVES OF EMPLOYMENT RELATIONS

The nature of the relationship is variously

perceived; for example, some see it as a
relationship dominated by the inherent conflicts
of interest between the parties whereas others
perceive it as a relationship that is, or at least
should be, dominated by cooperation. The
perspectives of employment relations include;
 Unitary
 Conflict
1. Conflict perspective
 It states that, the organization consists of a variety of
individuals and social groups each having their own social
values and pursuing own interests and objectives.
 As a result, the employer and employees are always in
conflict, which is an expression of power differences
between management and labor.
 This is the dominant theory in industrial relations or
unionized workers.
Unitary Perspective
 This perspective emphasizes the cooperative nature between
management and workers.
 This perspective assumes that employers and employees are joint
partners to the common aim of efficient production, high output
and good pay, and everyone in the organization has an interest in
its success.
 The perspective assumes that each employee identifies
unreservedly with the aims and objectives of the organization.
 It rejects the view that there is conflict between the managers and
employees.
 MANAGEMENT OF EMPLOYEE OR
EMPLOYMENT RELATIONS

 Open communication systems

 Building trust
 Democratic leadership styles
 Use of unitary perspective than conflict perspective
 Employee recognition programs
 Fair system of grievance handling
 Improved working conditions
 Training managers in interpersonal skills
 COMMUNICATION PROGRAMS
 Communication is key in employment relations
 The communication flows include downward, upward, and lateral
 Information dissemination programs include;
 Employee handbooks containing policies and procedures, and employee
rights
 Employment contracts consisting terms and conditions of working
 Regular meetings both formal and informal meetings
 Performance feedback sessions; Focus on specific behaviors, Keep
feedback impersonal by making it descriptive not judgmental, stay focused
 Electronic communications e.g. staff emails
 Other written communications like Memos, Annual reports, News letters,
bulletin boards etc.
 Suggestion systems e.g. suggestion boxes
 Recognition awards and celebrations
 FAIR TREATMENT PROGRAMS

 Unfair treatment reduces morale, increases stress, and has negative

effects on performance
 Fairness is inseparable from what most people think of as Justice. A
company that is just is among other things equitable, fair, impartial and
unbiased in how it does things.
 With respect to employee relations, organizational justice is defined in
terms of its three components i.e. distributive justice which looks at the
fairness and justice of the decision’s results, procedure justice which
looks at the process followed, interactional justice which looks at the
manner managers conduct their interpersonal dealings with employees.
 Equal employment opportunities
 Treating of employees with respect and dignity
 Job evaluation for equitable payments
 Performance evaluation criteria
 Discipline i.e. rules and regulations, systems of progressive penalties,
and an appeal process
 Incentives or performance based pay
 TRADE/LABOUR UNIONS AND EMPLOYERS
ASSOCIATIONS

 Employers Association
 Trade Unions and Employees associations
 EMPLOYERS ASSOCIATIONS
 Employers’ associations are organizations consisting of employers
whose principle purpose is to protect and promote the interests of
its members as employers and regulate their relations with their
employees. Employers associations consist of large and small
organizations ranging from the private to public organizations.
 Employers Associations regulate the relationship between
employers; policy makers and other bodies whose operations affect
the interests of the employers. Therefore the Employers
Associations can be seen as the collective vehicles for the
employers` interests E.g. FUE (Federation of Uganda Employers)
 TRADE UNIONS
 A Trade Union can be described as any association of employees
whether temporarily or permanently formed primarily for the
purpose of regulating the relationship between the employers and
the employees.
 A Trade Union is a voluntary association of employees formed to
protect and promote their interests through collective action.
According to the classical definition, a Trade Union is a continuous
association of wage and salary earners for the purpose of
maintaining or improving the conditions of their working life.

Note: search for the advantages and disadvantages of trade unions