UNIVERSITY OF NAIROBI

COLLEGE OF EDUCATION & EXTERNAL STUDIES

FACULTY OF EXTERNAL STUDIES

DEPARTMENT OF EXTRA-MURAL STUDIES

COURSE OUTLINE

HUMAN RESOURCE MANAGEMENT

108.1 COURSE OBJECTIVES

At the end of the course, the learner should be able to:
define Human Resource Management
identify the differences and relationships between the HR M and Personnel Management
appreciate the functions, activities and the extent of the role of HRM in the organization
apply those acquired HRM skills in his/her organization
108.2 THE SCOPE OF HUMAN RESOURCE MANAGEMENT
definition of HRM
history of HRM
differences of relationships between HRM and personnel management(PM)
some comparisons between HRM and PM
108.3 THE ORGANIZATIONAL CONTEXT OF HRM
Human Resource Manager
HRM Department organization structure
Participate communication
HRM Purpose
HRM Objectives
Personnel Policy
HRM nature of partnerships
Participation leadership
Employee motivation

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108.4 ORGANIZATION
- Organization analysis
- Organization structure
- Organization design
- Organizational culture
- Organizational effectiveness
- Organizational change
- Organizational development

108.5.0 HUMAN RESOURCE MANAGEMENT FUNCTIONS

108.5.1HUMAN RESOURCES PLANNING

Definition
determining requirements for Human Resources Planning
forecasting demand and supply
short-term and long-term Human Resources Planning
essentials of Human Resources Planning
108.5.2 JOB ANALYSIS
purpose and use of job Analysis'
methods of Job Analysis
job description
performance standards
job specification
job design
job evaluation
108.5.3 RECTRUITMENT AND SELECTION
purpose of recruitment and selection
recruitment policies and practice
defining requirements
recruitment and selection process
placement

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EMPLOYMENT CONDITIONS

employment policy
employment contract
promotions, transfer, demotion, redundancy, dismissal, resignation and retirement
labor turnover
discrimination in employment
Employment Act (Cap. 226)
108.5.5STAFF PERFORMANCY APPRISAL
purpose and importance of performance appraisal
objectives of performance appraisal types of appraisal
performance appraisal methods and procedures
problems in performance appraisal
major uses of performance appraisal W
108.5.6 WAGES AND SALARY ADMINISTRATION
basis of wage payment systems
wage structures and salary structures
wage and salary system guidelines
regulations of wages and conditions of employment Act
(Cap. i 91), National Social Security Fund Act (Cap.
258),and Pensions Act (Cap. 189) ),
108.5.7 HEALTH & SAFETY
health and safety policy
factors affecting health and safety
causes of accidents
accidents prevention
occupational health programs
welfare
Workmen Compensation Act (Cap 236), Factories Act
(Cap.514) and National Hospital Insurance Fund Act
(Cap. 255)

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108.5.8 STAFF TRAININ G AND DEVELOPMENT

training and development

identification of training needs
designing training programmes and evaluation
implementing training programmes and evaluation
Meaning of staff development needs.
career planning
industrial training Act (Cap. 237)

108.5.9INDUSTRIA L RELATION S
industrial relations framework
the role of top management
concept of collective bargaining
negotiation process
disputes settlement procedures
grievances and discipline issues procedures
the three partners n industrial relations
trade unions Act (Cap. 233), trade' disputes Act (Cap. 234) and Industrial Relations
Charter

108.5.9 PERSONNEL RECORDS

requirements for good record system

designing the system

types of personal records

uses of personnel records

record keeping and confidentiality

REFERENCE BOOKS

1. NZUVE , S.M.N. Management of Human Resources; A Kenyan perspective, 1999s Tech

and Pro Associates Publishers Nairobi ,

2. Graham, H. T. and Bennet, R.; Human Resources Management, 1998, Pitman Publishing,
London

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 1.0 THE SCOPE OF HUMAN RESOURCE MANAGEMENT

The most important resources of an organization are its human resources, i.e. the people who
supply the organization with their work, talent, creativity and drive. These among the most
critical task of a manager are the selection, training and development of people who will best
help the organization meet its goals?

Without competent people at every level of the organization, organizations will either pursue
inappropriate goals, find it difficult to achieve them once they have been' set.

1.1 Definitions of human Resource Management,

Def l:

Human Resource Management can be defined as a strategic and coherent approach to the
managementof an organization's most valued assets; the people working there who individually,
or collectively contributeto the achievement of its objectives.

Def 2:
Human Resource Management can also be defined as the effective and efficient -
utilization of Human resources to achieve organizational objectives.

Def 3:
Human Resource Management is the management function that deals with the
recruitment, placement, training and development of organization members.

1.2 HISTORY OF HRM

The evolution of HRM is associated to the works of early scholars. The evolution dates back to
18th c when personnel management was first practiced .The evolution is easily analyzed under
two main schools of thought namely

1) The classical school of thought

2) Behavioral school of thought

1) The classical school of thought

It contains the works of early scholars who brought about the practice of personnel management;
under this school of thought we had the following

a) Scientific school of thought by Frederick Taylor (the father of management)

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 b) The organizational theory-by Henri Fayol.
c) Bureaucratic theory-Max Weber(credited for the organizational structures)

2) Behavioral school of thought

These includes the theory advocated by the modern scholars of management who noted the
weakness of the classical theories, the schools of thought under Behavioral are

a) Human revolutions movement by;

Prof.Eton Mayo
b) Mary Parker

1a) scientific school of thought by Frederick Taylor (1856-1917)

Taylor was an American Engineer who advocated that management was a science and therefore
to him it was possible to scientifically determine the best way of increasing productivity. He
came up with clearly defined principles for guiding management. Taylor learnt that workers were
simply soldiering i.e. they were doing less but increasing their days of working instead of
increasing their efforts.

PRINCIPLES OF SCIENTIFIC MANAGEMENT

1) use of monetary rewards to increase their productivity i.e. high pay for success
2) Use of time motion- to determine the best ways and methods of performing a task-
``setting standards of work.(Time-study principle )
3) Separation of planning from doing work it is the managers responsibility to determine
what is to be done while workers are to follow the ways to do it. Workers cant plan and
manage simultaneously.
4) Advocacy of large daily task per person is use of piece rate principle-this was to be a
means of payment where production was per unit and one be paid per units produced.
5) Introduction of rest periods during the working days-that workers be allowed to have
breaks during the working day i.e. tea breaks, lunch breaks i.e. social aspect this would be
important for them to gather energy for more work.
6) Advocacy for systematic training of workers based on their potential ability. Assess the
workers and identify the training needs, then train them in the areas of their ability. Also
managers be trained for them to manage.
7) Selection and promotion of employees be based on merit.
8) Radical change of attitude for both laborers and their managers i.e. they should
concentrate on how to increase work productivity
9) Advocated for harmony and co-operation between workers and employers for work
efficiency.

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 Effects on the results of these principles

The following were results at steel rolling mills where Taylor worked:

1. Production was increased by 120%

2. No of supervisors reduced from 1200-35 and workers developed self drive for work- a
fair pay for a fair, work done there was motivation among workers.
3. No of workers reduced by 30% yet production increased.

CONTRIBUTION OF SCIENTIFIC MANAGEMENT TO HRM

1) Compensation

There was advocacy for higher pay and wages this has made managers sensitive of better
remunerations.

2) Introduction of the use of piece rate principles is still widely used by many organizations
today for payment system.
3) Motivation-introduction of rest period during working days i.e. tea breaks, lunch breaks,
use of monitory rewards to employees is a motivational method used today.
4) Training and development-Advocated for systematic training of employees in areas of
their potential abilities while is still practiced today.
5) Organizational development-by introduction of guidance, standards set on doing tasks
as well as calling for radical change of attitudes on both the laborers and their employees
will encourage today in many organizations.
6) Piece-rate principles-wages vs. output

CRITICISMS OF THE SCHOOL OF THOUGHTS

1) The scientific thought was production or profit oriented instead of welfare of the workers.
2) Man is driven by economic gains hence man is purely motivated by search for economic
gains but not ``job satisfaction there are other complex factors that may matter
3) It only stressed on monetary rewards regardless of other factors that lead to job
satisfaction e.g. recognition.
4) The school of thought ignored personal differences among workers and looked man as a
machine

a) HENRI FAYOL (1841-1925)

- Is another contributor to scientific management

- He was a French industrial psychologist/Engineer
- Unlike Taylor, Fayol emphasized on improving the quality of management towards
increasing productivity. He then came up with the following principles.

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14 PRINCIPLES OF MANAGEMENTS BY HENRY FAYOL

1. Division of work principle

Division of work permeates organizational members to work in a limited area i.e.
reducing the scope of work based on expertise. This will create efficiency as a result of
specialization in ones best area; Allocation of tasks in accordance to peoples
responsible and accountable.
2. Authority and responsibility principle
According to him responsibility for the execution of work should be accompanied with
the authority to control and direct means of doing the work. Authority is the right to
direct and control sub-ordinates at the place of work. i.e. right to give orders. A worker be
put in charge and be allowed to make decisions.
3. Discipline principle
Fayol perceived discipline in terms of obedience and respect thus managers are expected
to be disciplined and adhere to organizational rules and regulation .He called for enforced
penalties to those who violate rules and regulations of the organization. Also superiors
have a right to be obeyed without question.
4. Unity of command
Fayol emphasized that subordinates should take orders from one superior only. This way
work related conflicts can be avoided and efficiency enhanced. He further said that if the
unity of command is violated, authority is undermined; discipline jeopardized, order
disturbed and stability threatened.
5. Unity of direction principle
Fayol stated that each organization should have one head and one planner i.e. all closely
related activities should be grouped together and headed or directed by one individual.
This leads to harmonization of organizational activities towards one direction (i.e.
achievement of org. goals)
6. Subordination of individual interest principle
Fayol said that the goals of the organization should take precedent over the goals of an
individual thus the personnel should be motivated enough to observe this. Organizational
interest first then individuals interest second.

7. Remuneration of personnel principle

To Fayol wage and salaries and other rewards should be fair .Compensation should thus
consider the cost of living and current economic conditions and also experience,
expertise, skill, qualifications etc.
8. Scholar chain principle
Also referred to as chain of command which should flow from top to bottom i.e. official
line of authority. The chair should be unbroken. However it leads to a lot of time wastage
and could affect effective communication (read to barriers of communication) more
powers are concentrated at the top and diminish downwards.

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 9. Centralization of power principle
Fayol said that authority should be centralized and its location be known to all personnel.
The central point (control) exercises the overall control of all parts of organization.
However, this can lead to delays in decision making.
10. Order Principle
According to Fayol there should be order in the organization i.e. people should be found
at the right places, at the right time, doing the right things and other materials need be
arranged in a logical order to prevent wastages of both physical and human resources.
11. Equity Principle
According to Fayol equity is fairness, kindness and justice on the part of the administrator
as this will evoke loyalties and devotion from employees. Managers should exercise their
authority fairly in order to obtain loyalty of subordinates which will consequently help the
organization achieve its goals. Inequality should not exist at all in issues like remuneration,
leaves, promotion, rewards, punishments etc.
12. Stability of Tenure Principle
Fayol emphasizes that efficiency is promoted by a stable work force. labour turnover
should be reduced by managers by doing so security of office for employees is ensured.
This can be done by proper motivation and reward system. This will lead to long life career
development.

13. Initiativeness Principle

Employees should be given freedom to explore deeper their areas of specialization i.e. to
grow or advance ,Fayol said that people should be allowed to think of new and better ways
to perform activities and to ensure success, plans should be well formulated before they
are executed. Organizations should encourage Pro-active thinking as opposed to re-active
thinking. Give people a chance to air their views related to organization.

14. Espirit De Corps

Fayol said that in union theres strength. There should be organizational teamwork spirit
in order to achieve corporate goals. Manager should ensure close co-operation between
employees.

CONTRIBUTION OF FAYOL PRINCIPLES TO HRM

Fayol is credited for his call for
a) Discipline
b) Division of work
c) Unity of command
d) Authority and responsibility principle
e) Unity of direction
f) Remuneration

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 g) Order principle
h) Equity
i) Stability of tenure
j) Imitativeness
k) Security of tenure principle lead to scheme of service
Are all applied today by many organizations to enhance productivity.
Criticism
1. The centralization principle is not good because it could lead to delay in decision making and
communication process.
2. Scalar chair principle may not facilitate delegation of authority hence work may pile up.

c) BUREAUCRACY BY MAY WEBER (1864-1920)

- Max Weber was a German Sociologist/ scientist is referred to as the father of Bureaucracy
which is a Germany word referring to structure.
- To Weber success of an organizational depends on Bureaucratic.
- He defined bureaucratic firm as an organization that is guided by strict rules and regulations
which are geared towards achievement of organizational goals. i.e the rule of the Thumb
.
- From the study of Bureaucratic organization arose a lot of waste (red tape)or rigid
application of policies, people tend to put minimum effort.
- Weber based his theory on a study of the army whose success he attributed to their
discipline and strict hierarchy of authority and responsibility.

Reasons why max Weber advocated for Bureaucracy

1. The management needs to function by following clear and explicit rules.
2. Each individual is an organization should have fixed set of duties.
3. Every level of organization should be under supervision of high one.
4. Employees should not be terminated arbitrary from the employment.

CHARACTERISTICS OF BUREAUCRACY
1. Hierarchical structure
To him authority should be distributed in pyramidal order which each individual is responsible
for his activities and flow of command be from top-bottom
2. Division of labour
To Weber tasks and duties should be done so that individuals are assigned according to
their qualifications, experience and expertise. This leads to specialization and
departmentalization.
3. Strict adherence to rules and regulations
Weber advocated that employees should be regulated by tough rules and regulations- this
ensures orderliness. Hence a code of ethics.

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4. Impersonal relationships
Bureaucracy advocated that employees should only relate officially and that they should
be subjected to strict and systematic discipline this would avoid idleness, lead to use of
appointments

5. Career orientations
According to Weber appointment to offices should be based on expertise. Also
organizations should be spell out individual terms and conditions of service. This motivates
employees. The principle of career orientation suggests the following in reference to terms
of service:-
a) Employment should be based on expertise or specialization.
b) Promotion should be according to seniority or on merit only.
c) Salaries should be tied to ranks in the hierarchy of organization.
d) Individual employees should be free to resign if they wish to.
e) Retirement provisions should exist where applicable (e.g. early retirement)

CONTRIBUTION OF BUREUCRACY TO HRM

1. It advocated for expertise for efficiency even today recruitment is based on the
same.
2. It advocated for strict adherence or rules and regulations- even today most
organizations have a code of regulations that govern them.
3. Hierarchies of structures most organization today have the same i.e. top
management to bottom level (e.g. government organizations structure).
4. Division labour- common from max Weber bureaucracy hence existence of
departments and divisions.
5. Career orientation
6. Principle- is related today to terms of conditions.
CRITICISMS
1. Bureaucracy is too rigid and lacks flexibility hence slackened decision making
process.
2. Bureaucracy assumed that an organization exists in a stable environment however
environment is unpredictable

CRITICISMS OF SCIENTIFIC MANAGEMENT

- Looks at man as an economic machine
- Disregards the needs of a person weaknesses particular traits (individual differences)

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2) BEHAVIORAL SCHOOL OF THOUGHT

- This school of thought was a reaction against classical management theory (scientific
management theory). Behavioral school of management theories were put forward by
modern scholars trained in sociology, psychology, anthropology and other social sciences.
So they understood people more.
- These scholars intended to improve the weaknesses noted in classical theories e.g. that
employees did not always behave as per expectations.

a) Advocates of Human relations movement

Mary Parker Follett (1920-1933)
- Was among the first social scientist to apply psychology in business and industry
- She believed that the fundamental problem in all organizations was in developing and
maintaining dynamic and harmonious relationships.
- She said having conflicts in any organization is healthy.
- She was after social order.

HER PRINCIPLES
Mary Parker Follett advocated for
1. Co- ordination principle
- She referred co-ordination as organizing activities so that the desired results are achieved
in the most effective manner.
- She advocated that employees and employers are likely to improve in their relationships as
a result of sharing of ideas in the process of performing their tasks.
2. Solving problems through conferencing principle.
- She said that employees and employers should solve their differences through the two
parties listening to each other i.e. these should be understanding in conflict resolution.

Elton Mayo
- He was also an advocate of Human relation movement.
- Looked at the way managers interacted with subordinates in the organization.
- He said that good human relations exist where theres mutual respect and understanding
between the two parties.
- Mayol did studies called Hawthorne studies between 1924-1933 with a main aim of coming
up with ways of improving efficiency and morale of workers in their work process. He
longed to understand the factors that motivated man at work.
Mayos Experiments or Hawthorne Studies
- It involved factory workers where he worked. He used two groups of Employees i.e.
Control group and experimental group. Light was used. For the control group light intensity
remained or was kept constant while the light intensity for the experimental group was
varied i.e. dim, dimmer, bright and brighter, this was done when the two groups worked.

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 Results: there was improved productivity for both groups which shocked Mayol. The
expectation was that the experimental groups work would reduce, even in his second
attempt light intensity for the control group was varied and that of experimental group
remained constant, again production remained high.

Implications of Hawthorne effect

- External job factors may not matter much i.e. rewards and other extrinsic factors may not
necessarily boost job satisfaction e.g. salary & wages.
- Internal (intrinsic) factors are the ones that enhance motivation for workers e.g. good
treatment, recognition and therefore it is important to consider peoples needs and interests
this can increase productivity of employees.
Conclusion: Hawthorne studies enabled organizations to understand the issues of
motivating employees.
- There was no relationship between physical conditions and productivity (because
productivity remained the same)
- When interviewed workers agreed on intrinsic motivations for increased production.

CONTRIBUTION OF HAWTHORNE STUDIES TO HRM.

1. It introduced new approach to motivation i.e. increased salaries may not improve work
efficiency but non- monetary motivators e.g. recognition, allow employees take part in
decision making, give them special attention, praises, sympathy, supervision, socialization
through welfare etc.
2. The studies outlined the importance of better management through sympathetic supervision
rather than autocratic approach.
3. The greatest contribution of the theory is recognition of the informal groups i.e. welfare
associations; this can improve production and efficiency.

Criticisms
1. Mayol didnt support his theory with quantities data he just said production increased
without giving the rate or %.
2. Just like earlier scholars Mayol only described man as a social man, hence failing to
describe man at work fully.
3. Mayol assumed that a happy worker is a productive worker which is not the case
4. He failed to understand what really constitute a good social environment i.e. attention and
more social groups was not enough. He ignored other ingredients to a good social
environment like job security, good human relations, industrial stability, and clear
organizational structures.

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1.3 Differences and similarities between HRM and Personnel Management

Similarities
1. Personnel management strategies like HRM strategies flow from the business strategy i.e.
emphasis on business issue.
2. Personnel management &HRM recognize that line managers are responsible for managing
people. Provides the necessary advice and support services to enable line managers to carry
out their responsibilities.
3. The values of personnel management and HRM are identical with regard to respect for the
individual, balancing organizational and individual needs and developing people to achieve
their maximum level of competence, both for their own satisfaction and to facilitate the
achievement of organizational objectives.
4. Both personnel mgt and HRM recognize that their most essential processes is that of
placing the right people in the right jobs, thus ensuring the organizations human resources
are matched to ever-changing organizational requirements.
5. The same range of selection, appraisal, training, management development and reward mgt
techniques are used in HRM and in personnel mgt.
6. Personnel Mgt & HRM, attach importance to the processes of communication and
participation within an employee relation system.

PM HRM
Short term perspectives Long term perspectives
Concerned with imposing rules and procedures Impatient with rules and procedures
Utaristic( consideration of employees on Concerned with team work
individual basis)
Job categories/grades are many Job categories/grades are few
Communication has restricted flow(orders Communication has increased flow
come from up) (employees are involved)
Training and development has controlled Wide range of courses
access on courses
Concerned with the implementation of policies
Goes further and looks at the welfare of the
employees
Conditions of employment are negotiable Conditions of employment are harmonized
On supervision of tasks there is a lot of There is nurturing
supervision
Transactional leadership(punishment and Transformational leadership (uplift the
rewards) morale, motivation, and morals of the
employees)

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 2.0 ORGANIZATIONAL CONTEXT OF HUMAN RESOURCE
MANAGEMENT

2.1 DUTIES AND RESPONSIBILITIES OF THE HUMAN RESOURCE MANAGER

The activities carried by a Hr manager vary widely according to the needs of the organization, the
jobs they carry out and their own capabilities, however the principal accountabilities of a Hr.
Manager include:

1. Participating as a member of the executive board of senior most management committee

in formulating strategies, policies and plans and in monitoring the organizations
performance to ensure that the corporate missions and goals are achieved.
2. Formulating and implementing overall Hr. strategies and specific plans derived from
corporate strategies.
3. Advising the chief executive and other senior managers on the Hr. policies required by the
company.
4. Planning and directing Hr. developments, performance management and career
management programs designed to improve individuals as well as organizational
effectiveness and to give employees the best opportunities to develop their ability and
career.
5. Develop reward management policies which attract, retain and motivate staff.
6. Managing and coordinating activities for which the Hr department is responsible i.e.
recruitment, training, salary administration, health and safety and reward management.
7. The Hr. manager also plays the role of a counselor and a mentor as well as a problem
solver.
8. Participating in the disciplinary committee.

2.2 FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

The key functions of Human Resource Management include the following:
1) Employee Resourcing.
This function involves planning Human Resource needs within an organization and
implementing these through employment activities such as recruitment selection and placement.

2) Training and Development.

This function is concerned with all the activities for the education, training and career planning
for employees in order to prepare them tor present and future jobs and thereby enhancing their
value to the organization.

3) Compensation.
This function is mainly concerned with rewarding employees for their skills and
accomplishments.
The objective is to attract retain and motivate employees through adequate and equitable reward
system.

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4) Maintenance
This serves to maintain an efficient and effective Workforce by sustaining and improving the
working conditions within the organization. Its concerned with the general welfare of the
employees including labour and industrial relations, health and safety programs and working
conditions.

5) Separation
Separation occurs when the employment contract is terminated and the employee leaves the
organization. Its the process of returning the employee to the society.

6) Staff relations
Concerned with the relationship that is held by the employees in an organization. Therefore HRM
should ensure theres a cordial relationship of mutual trust between:-
- Employees and management
- Employees and stakeholders
- Employees and union
- Employees and employees
- Ensures teamwork, co-operation, partnership
7) Human Resource Planning
Should to ensure that an organization does not suffer labour deficit at any time.
- Skill maintenance and enhancement
- Labour reservoirs
- Labour forecasting
- Retain the skills acquired
- Employee training now and future
8) Performance appraisal
Its reaching at a judgment about the performance of an individual employee in the past and in the
future. Is the employee meeting the targets or not, is he/she achieving the objectives, is he/she
doing the work as required by the job description. The appraisal is an annual process on each
employee to determine performance of an individual employee by the intermediate supervisor.
9) Personal procedures
Concerned with all personal procedures in the organization e.g. Applying leaves, dismissal,
terminating services, Sick leaves, annual leave ,compassionate leave, study leave, special leave
(attend special occasions abroad).Personal records- in charge of keeping, maintaining and
updating all records of the employees in the organization i.e. manual or computerized (software)
10) Formulations of Hr policies
Determines the rules and regulations governing the administration of the Human Resources, This
occurs on daily basis. Policies are statement that guide in formulation of an organization. They are

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the centre of reference of any issues regarding Human Resources e.g. transfer, training- promotion,
wages and salaries, resignation, dismissal, recruitment, smoking, demotion, equal opportunities,
attendances, age of employment, harassment(sexual), data protection. Substance abuse at work,
HIV policy, dress code, retirement, reward, health and safety, reading daily.

2.3 HUMAN RESOURCE POLICY

A policy is a broad guideline for managerial action in implementing objectives. Like a plan, it
can be specific or general, abstract or concrete as well as short term or long term. A policy
should explain how objectives are to be achieved and accordingly direct the behavior of people
in the organization by specifying the range of acceptable behavior. Some policies are
established by top management and apply to all parts of the organization. However, policies
can also be developed by lower-level managers to apply to specific sections of the organization
(Departments). Specific supervisors may develop policies for their areas of authority only.
Either way, HR policies:
(i) Help managers make rapid and consistent decisions
(ii) Provide managers with the confidence to resolve problems and defend their decisions
(iii)Reassure employees that they will be treated fairly and objectively.

NB; Hr policies should be written and distributed to everyone in the organization.

Written personnel policies can be more authoritative than verbal ones.
They serve as valuable aids in orienting and training new employees.
In administering disciplinary actions and in resolving grievances and problems.
.
2.3 HUMAN RESOURCE MANAGEMENT OBJECTIVES
1. Ensures achievement of success through people
2. Resourcing and development- sourcing for the required skills in an organization and
ensures you retain them through proper motivation.
3. Valuing employees- without employees the organization cant achieve its objectives.
Therefore organizations must value employees by enhancing motivation and their
commitment levels. This can be achieved by ensuring there are sound HRM policies.
4. Relationships-tries to create a climate in which productive and harmonious relationships
can be maintained in the organization. This can be achieved through encouraging
teamwork, spirit, partnerships etc. ensure you create a climate of mutual understanding,
trust, co-operation between:-
- Management and employees
- Employees and stakeholders
- Employees and employees
- Organization and the community.

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2.4 MOTIVATION
Motivation is the individual process that energizes directs and sustains behavior. It is the
personal force that causes one to behave in a particular way. Motivation can also be defined as
the willingness to exert high levels of efforts to achieve organizational goals, conditioned by
the ability to satisfy some individual need.
From the foregoing definitions there are three key elements in motivation; effort,
organizational goals and needs. Efforts and needs should be directed towards the achievement
of organizational goals.
Motivation is an integral part of the process of direction while directing his subordinate a
manager must create and sustain in them the desire to work for the specified objectives.
Motivation is the result of an interaction between human needs and incentives. A person feels
motivated when available incentives lead to the satisfaction of his/her motives or needs.

NATURE OF HUMAN NEEDS

Human needs are of various kinds and may be classified in many ways. They are
Influenced by the social, economic and cultural background of the individual experiencing
particular need. Human needs may be broadly classified as:-
1. Basic, primary or physiological needs
2. Secondary, social, psychological or acquired needs.

BASIC, PRIMARY, OR PHYSIOLOGICAL NEEDS

Human body needs some basic physical satisfaction, lack of which over a long time may be
harmful to it and may even prove fatal. For example human body will need oxygen, food, water
and sleep which are vital to its existence.
Human being will need shelter and clothing to escape the pain of extreme cold or heat. It also
needs sex for the preservation of the human race.
Basic needs are universally felt but they are different in their types and intensity from person
to person e.g. a child needs more sleep than an adult. Social and economic status of a person
will also determine the basic needs.

SECONDARY, SOCIAL, PSYCHOLOGICAL OR ACQUIRING NEEDS

Besides basic needs, one also feels other needs which though not as immediate, begin to be felt
by a person quite early in life and have an important hearing on the person. Secondary needs
are often vague because they are the needs of the mind and spirit rather than of the body.
It is easy for the management to satisfy basic needs to be satisfied. Therefore while planning
any motivational effort, management should consider its effects on secondary needs. The
following are characteristics of secondary needs:-
1. They are developed as one matures in age e.g. experience

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2. They differ in their types and intensity from person to person. While one person may have
need for power soon that may assert himself forcefully and move against people, another
may have need for affiliation such that he may even submit to their unreasonable demands.
3. They are not constant and may over time charge in the case of the same individual.
4. At any point of time, more than one need is felt by an individual
5. Often a person feeling secondary needs is himself not aware of it.

THEORIES OF MOTIVATION
Several theories have been developed to explain how to motivate employees. Among these
theories, the contributions of Maslow, Herzberg and McGregor are outstanding
a. Maslows Hierarchy of need theory
Abraham Maslows hierarchy of needs theory is probably the best known theory of
motivation. He hypothesized that within every human being there exists a hierarchy of
needs. He suggested that human beings have five basic needs which can be arranged in
order of importance. The figure below shows Maslows hierarchy of needs.

1. Physiological need- these are the most basic in the hierarchy. They are the basic
biological functions of the human organization. They are unlearned examples are
hunger; thirst, shelter, sexual abused, and sleep. In the employment context these are
usually satisfied through adequate wages or salary and paid in time.
Proper working conditions and other benefits.
2. Safety or security need. Security needs relate to the desire for a peaceful, smoothly run
and stable environments, workers want some assurance that their security needs will be
met. At work they wish for security of tenure, the existence of restrictive practices and
many aspects of trade unionism show how employees try to satisfy needs of this kind.
3. Social/love/belonging, affection, affiliation need, everyone in various degrees wishes
to give and receive friendship. It is the affectionate relations with other people and

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 status within a group. Companionship and association with others for recreational
purposes are examples of these needs. Since workers spend most of their working hours
in their working environments. Most of the love needs should be satisfied here. People
will require and expect to be valued and appreciated at their place of work.
4. Self-esteem need. These are needs for power achievement, aspires for self-respect, self-
esteem and esteem of others. At this level individuals went to feel that they are worthy,
that others also recognize this and that the individual likewise recognize that others are
worthy, at work a position of authority, a company car, an office, carpet on a special
type of overall are means by which these needs are satisfied.
5. Self-actualization needs- at this level, one become what one is capable of becoming to
develop oneself. And to be creative. That is what one can be, one must be an individual
need to self-actualize is the need to be what one what to be achieved fulfillment of
ones life goals and to realize the potential of ones personality. Workers choose
occupations that they like and they get certain satisfaction from accomplishing their
tasks. In the working environment the majority of employees find few opportunities to
satisfy needs in this class, skilled operatives professional workers and managers are the
most likely to be satisfied in this way.

Maslow has suggested that as each need is substantially satisfied, the next need
becomes dominant however because of the different social-economic classes needs in
any given society one should understand that these needs vary for example
physiological and safety needs which are basic have different meaning among the
upper, middle and lower class members of any society as well as at the work place.
What the upper class might consider to be self- actualization need is actually different
from the meaning attached to it by middle or a lower class person.

Mc Gregory theory x theory x and theory y

Theory x and theory x were advanced by Douglas McGregor an American writer. He
described two contrasting assumptions about the behavior of employees called theory
x and theory y. they are a set of assumption that underline managements attitudes and
beliefs regarding workers behavior

Theory X
It is a concept of employee motivation which assumes that employees have a natural
dislike towards work and will function only in a highly controlled work environment.
It is based on the following assumptions about employees, namely:-
That they are lazy
That they dislike work and will avoid it.
That since they dislike work they must be coerced in orders to do it.

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 That they will avoid responsibilities and so will seek to be led.
That most employees are self-centered in that they place security above all other factors
and will display little ambition, so the only way that management can make employees
to achieve high performance is to coerce, control and even threaten them.
Theory X emphasizes strict employee control and the application of extrinsic rewards.

Theory Y
It assumes that work is a natural and welcome activity which need not be externally controlled
if the employee is adequately motivated. Employees will accept responsibilities and work
towards the organizational goals only if they will also achieve personal rewards. It employs a
human and supportive approach to management. It assumes that employees:-
Are not inherently lazy
View work as being as natural as rest or pay.
Will exercise self-direction and self-control. If they are committed to the objectives.
Can, on average learn to accept even seek responsibility.
That the ability to make innovative decisions is widely dispersed throughout the
population.
According to this theory, the managers role is that of providing and enabling environment
for the release of potentials which employees are endowed with:-
Mc-Gregory took the view that theory X was the correct assumption to make and that firms
should be organized on that basis.
HERZBERGS MOTIVATION-HYGIENE THEORY
This theory was expounded by Fredrick Herzberg also referred to as the two factor theory of
motivation.
This theory postulates that there are two sets of factors which differ in their effects on people
at work. These are motivation and hygiene factors.

MOTIVATION HYGIENIC FACTORS

Achievement Supervision
Recognitions Working conditions
Responsibility Interpersonal relationship
Advancement Pay
Growth Job security
The work itself Company policy and administration

According to Herzberg, the factors leading to job satisfaction are separate and district from
those that lead top job classification. Therefore by acting to eliminate factors that can create
job dissatisfaction one can bring about peace, but not necessarily motivation. As a result such
characteristics as company policy and administration, supervision, interpersonal relations,
working conditions and pay (salary) have been categorized by Herzberg as hygienic factors.

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When they are satisfactorily maintained, people will not be dissatisfied; however neither will
they be satisfied.
If we want to motivate employees, Herzberg suggests emphasizing achievement, recognition,
the work itself, responsibility, growth and advancement. These are the characteristic that
people find intrinsically rewarding.

MOTIVATIONAL TECHNIQUES AND METHODS

REINFORCEMENT
This is any outcome of a response of the stimulus which produced it, a reinforcement increase
the probability that the stimulus will elicit the same response. These are two types of
reinforcement namely:-
a. Positive reinforce
b. Negative reinforce

1. Positive reinforce
It is an outcome of a response which strengthens the association between the response and the
stimulus which produced it whenever the outcome is preserved or occurs. An outcome which
strengthens the outcome or makes the response more frequent when the individual experiences.
It is a positive reinforce, some example of appropriate positive rein forcers include:-
a. Recognizing achievement- many people like to feel important regardless of their position.
Recognition can be provided by giving feedback to staff members. This should be done for
all staff regardless of their maturity level at giving praise to the consistently good
performer.
b. All for growth- where an individual is motivated and performing well and wants to extent
himself or herself, more responsibility should be delegated to him or her. It may also be
appropriate to encourage the staff member to set his or her own goals. This aids the
development of a staff member from his present maturity level to the next one.
c. Rewarding improvements in performance no matter how this shall. This is particularly
important when an employee is at one first level of maturity or development. Rewards can
be reduced as the staff members maturity level develops. This should also include the type
of rewards.
d. Criticizing the work and not the worker- when there is need to criticize an aspect of
persons work, it is the work that should be criticized and not the staff member. This can
be done by making the point that there is something wrong with the task staff member is a
fault or stupid. A manager or supervisor should be certified to pointing out an error.

2. Job enrichment
The most popular advocated structural techniques for increasing an employee motivational
potential is job enrichment. To enrich a job management allows the worker to assume some
of the tasks executed by his or her supervisor. Enrichment requires that workers do

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 increased planning and controlling of their work, usually with less supervision and more
self-evaluation. Job enrichment will only be successful when it increases responsibility,
increases the employees freedom and independence, organizes tasks so as to allow
workers to do a complete activity and provides feedback to allow individuals to correct
their own performance.
A successful job enrichment program should ideally increase employee satisfaction. There
is evidence that job enrichment produces lower absenteeism and reduces turnover and
increase productivity.
If the individual did not want increased responsibility then increasing responsibility will
not have the desired effect.

3. Job enlargement
It involves expanding particular jobs content horizontally. It increases the number of
different operations and creates a wider variety of duties of the jobholder. In many ways it
expands ones activities and reduces boredom hence increasing the number of tasks on
individual performs. However it can affect ones morale since there is only increased duties
and responsibilities without corresponding benefits. i.e. no increased pay or improved
fringe benefits.
4. Participation and quality of working life.
The premise of quality of work life is having a work environment where an employees
activities become more important. This means implementing procedures or policies that
makes the work less routine and more rewarding the employee. Participation is an
important ingredient of any programme intended to improve the quality of working life
(QWL) of the organization employees. This might include autonomy, recognition,
belongings, progress and development and external rewards.
Other element of environmental conditions, increasing the flow of communication within
the organization, employee involvement in target setting, job design, having employees
solve workplace problems better leadership styles and interpersonal relationships.
Stress- reduction programmes and generally enhancing the culture of the workplace.
The rationale for improving the quality of working life is that employees will normally be
more productive if rather than just tolerating their lives at work, they actively enjoy the
work experience.

RECRUITMENT
This is discovery and development of the sources of the required manpower/ personal so that
sufficient number of candidates will always be available for employment in the organization.
This is also a process of searching for prospective employees and stimulating him to apply for
jobs in the organization.

Sources of recruitment

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a. Internal sources
- Through transfer
- Through promotion
- Pressure employees
b. External sources
- Advertisements
- Professional magazines
- Professional bodies
- Employment agencies
- Personal constituency
- Circulars, posters
- Educational institution
- Unsolicited applicants
- Field trips

Types of internal sources

Transfer
Transferring of an employee can be used as source of recruitment in order to sort out personnel
needs at the place to which the employees is transferred e.g. if an employee has retired/ died,
we can use the existing employees and transfer them to replace those who have left e.g. from
one department/branch/ region to another to fill an empty vacancy.
- Creates motivation and avoidance of monotony arising from working at the same place for
a long time.
- Increases productivity of an employee because he/she will work harder than before.
- Improvement of skills among the employees transferred because he/she is exposed in
another department
- To avoid retrenchment at the place of excess of personnel and fresh recruitment at the
place of shortage of personnel
- Correct any faulty placements of workers at any time of selection

Promotion
This is appointing an employee to a position of greater responsibility/authority; in promotion
we dont increase the number of employees in the organization we only elevate them to
positions of greater responsibility based on merit or seniority. This enhances job motivation
and satisfaction of the promoted employee.

Present employee
In the event of any vacancy the employees may be asked by the management to recommend
their own people e.g. friends/relatives for employment.

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Advantages of Internal recruitment
1. Increase in morale of the existing employees
2. The management has up to date information of capability, experience, skills, attitudes and
behavior of each employee.
3. Economical because no time for analysis is wasted unlike in the external
4. No induction because personnel from internal have been part of the system and thus must have
had some induction when they joined the organization.

Disadvantages
1. In-breeding- Narrowing of the opportunity to exercise a wide choice. A person chosen from
within may therefore be not the right one for the work. Any negative quality, displayed before
6will continue e.g. lazy.
2. Lack of originality Internal vacancy replacements may not have any benefits of fresh outlook.
People recruited this may lack originality, Initiativeness, innovation; may have no vigor.

Types of internal sources

1. Adverts
When jobs become vacant in the organization, the management may decide to externally
recruit people, by placing external advertisements in the media. This is a very common method
especially for jobs in urban areas. They are put in the most popular newspapers or aired over
the radio. Potential applicants are advised to send their applications as well as their curriculum
vitae. All the details of the job are usually indicated on the advert e.g. minimum qualifications,
experiences, salary.
2. Professional magazines
A professional is someone who has undergone a vigorous training in an area. These have their
professional magazines. By advertising in these magazines you get to these professionals.
3. Professional bodies
These are associations of professionals in a given area. Such associates usually have a register
of their qualified members including information on those who would wish to change their
positions or improve them. Any potential employer will need to liaise with those bodies if you
require recruiting professionals from them.
e.g. Public Relations Society of Kenya
- Law Society of Kenya
- Institute of Surveyors
4. Bureaus
Employment agents (bureaus) - They are associations which ask their members to place their
C.V with them and they will try to assist them to obtain employment or those who wish to
improve or change their working positions. Such bureaus save the time and trouble for an
organization to do recruitment in that they provide ready candidates at a very short notice.
5. Personal consultancy

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 These personal consulting firms usually act as intermediary between a job applicant and the
enterprise/employer. They receive requisitions for personnel from their client, companies or
the organization requiring the employees then they do the recruitment process on behalf of the
client at a fee.
They advertise, give the job description in the leading newspapers without necessarily
disclosing the name of the client company then they conduct interviews, screen the candidates
and select the most qualified person that the present to the client. In disclosure of the client
company enables objective recruitment and the right candidate for the employment.
E.g. Man power
- Price Water House & Coopers
- Hawkins etc.
6. Educational institutions (Campus).
Colleges and institutes of management and technology have become a regular source of
recruitment for both technical and managerial jobs. Therefore any organization requiring
employees usually liaise with such institutions whenever they want to employ people. They
may write circulars, letters or even visit them and may interview the students about to graduate.
They include universities, tertiary colleges etc.
7. Circulars & posters
This method is commonly used when looking for jobs, requiring rare skills and for staff in
short supply. The human resource department may pin a circular or posters outside the main
administration offices or in any other strategic and suitable places near the organization so that
the locals may apply for such jobs.
8. Field trips
An enterprise may send out few of experts to different places both local and abroad where the
kind of personnel needed by the organization may be found. This team may interview and then
select people to join the organization. It is important to give such trips enough publicity so that
a greater majority of people become aware of them.
9. Unsolicited applicants
They are personnel who gather at the factory gate serving as casual workers or even to try
getting a presumed job. Or at times they want to reach the employer through a telephone or a
letter. However an organization can get instant labour from such people.

Advantages of external sources

- Wide sources- selection from external sources only enable the choice of personnel from
among a large number of applicants, hence an enterprise is likely to get the best employees
- Fresh air and outlook- An enterprise benefits from freshness of outlook and approach of
new personnel chosen from external sources. Fresh employees begin work with a lot of
vigor; they have no in built preferences, biasness, prejudices, that is very common with
internally selected personnel. They have no stereotypes.
Disadvantages

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 - Expensive- the adverts, interviews, require money and time.
- Heart burning among existing employees this causes demoralisation among existing
employees especially when they feel left out for such positions when they were qualified,
consequently they may not cooperate with an incoming employees because they are heart
broken.
- Induction/orientation will be necessary for those recruited externally. This is expensive and
time wasting.
- Dangers of maladjustment- A new employer fails to adjust him/herself to the working in
the organization with speed because of change of environment. He /She takes time to settle
down.

SELECTION
This involves screening/evaluation of applicants to identify those who are best suited to perform
the jobs that have fallen vacant in the organization. It is a process that will lead to rejecting many
unsuitable and choosing a few suitable candidates. The candidates certifications and experience
are considered when selection is being done. The main aim of selection is to choose the right type
of candidates to fill a vacant position. This involves matching the candidates qualifications and
the job requirements.
Significance of selection
1. Selection enables an organization to obtain the most qualified candidates to do given job.
Services of training are minimized.
2. Quality work is usually obtained from the selected qualified employees.
3. Results in a stable working force i.e. selection enables an organization to minimize labour
turnover. Because the selected are the ones that were highly interested, and they stay
longer, they are able to minimize labour lost.

Steps in a selection procedure

1. Preliminary interview
This can take place in the organization counter or at the reception whereby the candidate
exchanges some information with the receptionist and he gets informed of the organization,
the organization is able to know a little bit about the candidate.
Then the interviewer determines whether you are worthwhile and be given an application
blank.
2. The applicants fill the blank
This is a brief resume where the applicant fills his/her name, gender, qualification, etc., and
it gives relevant information of the applicants. The data obtained is used later in the
interview, thus the blank should elicit/obtain important information relevant to the job.
3. Interviews
Interviews are orderly used in the selection process yet widely abused selection devices.
The effectiveness of interviews starts with the interviews in terms of their skills or tactics.

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 The Human Resource manager must ensure that all the panelists are trained on the
interviewing skills: - in communication as well as asking questions. An interview can be
subjective- if the interviewer has prior knowledge of the candidate (halo effect)
interviewing is an interaction process between the interviewer and the interviewee. The
later wants to get adequate information about the organization. The former wants to get
adequate information about the interviewee. In an organization set up, most interviews are
conducted by the Human Resource Department who start by forming various interview
panels composed of the major departments in the organization; each panel should have a
chairman although this is rotational.

Interview guidelines
- Hold it in comfortable surrounding/environment free from any interruptions. Both the
panelist must be comfortable.
- All the interviewers must be conversant with all the data on the job.
- The interview should be based on the job description and specifications.
- There should be an agreed upon criteria for awarding marks to the applicants responses
(score sheet)
- Every member in the panel should be allocated an area where to ask questions from.
- Provide an enabling environment so that an applicant has a mental setting necessary for
establishing and sustaining a rapport.
- Questions should be open ended so that applicants can give their own answers and
explanations or descriptions such questions enable interviewees to expose themselves.
- In order to capture many things from the applicant be detective and attentive through the
interview because this gives the candidate an impression that the panel is taking him/her
seriously.
- Never react in a way to give the candidate an impression that you are approving
disapproving an answer. Be natural and avoid gestures. Dont lead in candidates/ give clue.
- Every interviewer should have a guide/interview and follow it strictly without deviating.
- Ask questions in a clear and un ambiguous way
- The chairman of the panel should be courteous , start by welcoming the candidate, ensure
he/she is comfortable and at the end inform the candidate the interview is over and wish
him the best and promise the results will be out as soon as possible and thank the candidates
for the attending the interview.
N /B- avoid halo effect because it can influence the interview process thus making the
interview subjective and most qualified person is not obtained.
- At the end of the interview you must have interview evaluations usually after all the
candidates have been interviewed or at the end of the day add up scores of the individual
interviewees ,the chairman should have the panelists have their individual/independent
scores, completed immediately the candidates leaves. This is for arriving at a merit list/
ranking of candidates.

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 Appointment letter
Successful candidates who goes through the recruitment process is then formally appointed by
issuing an appointment latter that will allow him to join the organization as a new employee,
sometimes the appointment letter may not have the specific job but this can be done when the
employee reports to the organization.
Placement
Selected candidates are put on or posted in appropriate jobs in the organization. This is referred
to as placement. It involves assigning specific jobs and work to the new employees. It should
be correctly done because incorrect placement has been attributed to high labour turnover and
poor job satisfaction.

LEADERSHIP
Leadership can be defined as the ability to influence the opinions, attitudes and behavior of others.
It is the influence under which followers accept willingly the direction and control of another
person.
A person is said to have an influence on others when they are willing to carry out his/her wishes
and accepts his advice or guideline.
A manager can be a leader if he/she has the ability to influence others not through the legal powers
(authority) but from personal ability to influence others. Thus leadership is the ability of
management to induce subordinates to work towards group goals within confidence and keenness.
Leadership implies that the leader accepts responsibility for the achievement of the group
objectives and it is therefore essential for trust and co-operation from both sides to be in evidence
all the time.
To get good results in group activity, there must be leaders and the led (followers). Whenever two
or more people come together, there are two roles played, the leader (influencer) and the led
(followers) or (influenced)
IMPORTANCE OF LEADERSHIP
Good leadership is essential to effective management more failures of business are attributable to
poor leadership than to any other cause. It is the quality of leadership that usually determines the
fate of an organization. The leader is one agent who helps smooth the pathway towards goal
accomplishment.
The importance of leadership is reflected in the following function:-
1. Motivating employees
A good leader makes people eager to work towards the achievement of the goals. He gives
character to the group and sets the goal of the organization. Sound leadership creates an urge
for accomplishment and transforms potential into performance. A good leader improves the
loyalty and commitment of employees towards the organization. He/she creates and maintains
an environment conducive to high performance good leadership is itself a motivating force for
individuals which inspire people to work hard.

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2. Morale
The leader lifts a mans vision to higher, raises his performance and builds up his personality.
The leader shapes the thinking and attitudes of the group have and maintain discipline. She/he
develops good human relations and facilitates interactions between the members of the group.
3. Goal setting
A leader provides guidance to the group by setting and interpreting the objectives. He/she
outlines the operations of the organization.
4. Coordination
Leadership is the cohesive force which holds the group interacts, the force that transforms
chaos into order, the disciplinary power that keeps the group working towards the goal. A good
leader fosters mutual understanding and team-spirit among his followers He/she harmonizes
organizational goals and individual interest of the subordinates. He/she resolves internal
conflicts by serving as arbitrator and mediator between the opposing factions.
5. Representation.
A leader is the representative of his followers. He serves the personal embodiment of the group
and as the time guardian of its interests. He/she defers the integrity of the group.
6. Facilitates change.
Leadership is the mechanism to convince people about the need for change, dynamic
leadership is the cornerstone of organizational change and development. In a world of change
and uncertainty the business leader becomes a vital element in the very process of change itself.

LEADERSHIP THEORIES
These theories began when the ideas of unique leader traits were questioned in the 1940s. It was
considered that the qualities of leaders could be analyzed better by looking at their behavior or
their behavioral styles that cause other to follow them. Theories of leadership can be classified
under three headings:
- Trait theories
- Contingency / situational theories
- Behavioral theories

1. TRAIT THEORIES
A trait is a physical or psychological characteristic that account for the behavior of a person.
These are based on heredity or genetic influence. They are founded in the brief that the person
is more important than the situation and that if we can find what attributes a good leader
possesses, then we may be on the road to solving the leadership problem. This implies that
leaders are not made and that leaders inherit certain characteristics or traits which separate
them from their followers. Although a number of studies have been carried out to try to prove
this theory, the results were inconclusive. However certain assumptions were arrived at that: -
1. Intelligence A leader generally has above average intelligence. He/she has the ability to
think logically, analyze accurately and interpret precisely the problems faced.

30
 2. Initiative and creativity A good leader should possess strong inner motivation or the need
to accomplish something. His thinking should be innovative.
3. Self-confidence-A good leader has to have confidence in him and in what he/she is doing.
His / her outlook is optimistic and possesses adequate enthusiasm and resourcefulness to
inspire his subordinates and to boost up their morale.
4. Open Mind A leader is always ready to adopt and absorb new ideas as per the needs of
the situation. He / she prepared to accommodate other viewpoints if necessary, to modify
his decisions.
5. Maturity An effective leader is emotionally and mentally mature and has a balanced
temperament. He / she must have high patience and tolerance for instruction. He does not
easily loose the balance of mind. One must have sound judgment and ability to take quick
decisions.
6. Vision and foresight A leader should have the imagination to anticipate problems well in
advance and creative thinking to design appropriate courses of action. His / her attitude
should be future oriented.
7. Human relations skills A good leader should persuade and influence people by giving the
attention to human relationships. He /she must have the ability to communicate effectively
with people. One must be able to guide and teach his subordinates.

2. CONTINGENCY / SITUATIONAL THEORIES

These theories attempts to explain leadership within the context of the larger situation in which
it occurs. The theories are based on the assumption that, there is no single style of management
relevant to any leadership situation. It all depends on the prevailing situational variables. It
states that the appropriateness of the actions of a leader depends upon the actual situation in
which action are taken. In other words, the traits and behavior of the leader are governed by
demands of the situation. For example an autocratic leadership approach may for example be
suitable for managers in a factory but not for managers of a development and design staff. This
is in contrast to earlier theories which concentrate on the behavior and traits of a leader.
Fred Fielder was one of the leading advocates of the contingency theory concentrating on the
relationship between the style of leadership and the effectiveness of the work group. After
examining leadership situations in a number of groups he established that there were two styles
of leaders.
- Psychologically distant managers (PDMs)
- Psychologically close managers (PCMs)
In case of psychologically distant managers, the following facts emerged:
a) The role and relationships between the manager and his/ her superiors and subordinates
were formal
b) The managers were withdrawn are reserved in their personal relationships within the
organization worked for

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 c) The managers preferred some type of formal consultation method rather than accepting the
informal opinions of their staff.
The psychologically close managers on the other hand adopted a completely different approach.
a) They did not try to formalize relationship between superiors and subordinates
b) They were concerned with trying to maintain good human relationships
c) They preferred informal consultation methods to formal ones

Fielder also established that the efficiency of the work group depended upon:-
a) The relationship between the leader and his/her group
b) The extent to which the task is defined
c) The power of the leader in reaction to his her gang in terms of rewarding and punishing

3. BEHAVIOURAL THEORY
The behavioral theory of leadership is based on the assumption that leadership effectiveness
depends upon what the leader does. The leadership behavior is one product of the leader and
the followers. A leader uses his skills to exercise, influence and modify behavior of his
subordinates. The behavioral approach is useful to the extent that it suggests favorable leader
behavior to inspire and guide subordinates. But a particular behavior may be effective under
one situation and ineffective under a different situation.
LEADERSHIP AND MANAGEMENT STYLES
A leadership style reflects the behavioral pattern of the leader. There are different leadership styles
and the most common are:-
1. AUTHORITARIAN OR AUTOCRATIC LEADERSHIP
An autocratic leader is one who takes all the decisions him/herself without consulting his/her
subordinates He/she demands complete loyalty and unquestioned obedience from his followers,
this kind of leadership is characterized by maximum possible concentration of authority. Close
supervision, unilateral decision-making and one-way communicate. It is a boss-center leadership,
the leader or manager assign workers to specific tasks and expect orderly and precise results.
He/she sets goals tells workers what to do and how and when to do it. He may or may not give
explanation and also exercise close supervision.
An autocratic leader is generally disliked as there is no scope for initiative and self-development,
behavior of the subordinates because hostile and attention is focused upon pleasing the leader.
They remain uniformed, insecure and afraid of leaders authority and autocratic leader may be
successful an emergency or in case of undisciplined, Illiterate and unorganized people who want
to depend completely on their leader. This leadership style is also referred to as dictatorial
leadership.
2. DEMOCRATIC OR PARTICIPATIVE LEADERSHIP
A democratic leader obtained ideas and opinions from workers. He/she gives them a chance to
participate in the process of decision making and express their feelings about how things should
be done. Decentralization of authority, participative planning, two-way communication etc., are

32
the main features of democratic leadership. A democratic leader is a team manager and operates
according to majority opinion.
Participative leadership improves job satisfaction, motivation and morale of employees. It reduces
resistance to change and helps in winning the loyalty of employees.
3. LAISSEZ FAIRE OR THEREE REIGN LEADERSHIP
In this type of leadership, the leader leaves it to the subordinates to decide and control themselves
with the believe that they are competent and motivated. The employees are given the authority to
make a decision or determine a course of action. The leader merely acts as an umpire or consultant
to the group. He does not interfere in the activities to his subordinates. One believes that people
will perform better if they are left free to make and enforce their own decisions. The manager
indicate what needs to be done and when it must be accomplished but lets employees decide now
to accomplish it as they wish.
In this type of leadership communication flows horizontally among group members.
Free-reign leadership is thus subordinates- centered and may be successful where the subordinates
are highly competent and fully dedicated to the organization.
4. BUREAUCRATIC LEADERSHIP
A bureaucratic leader depends upon rules and regulations developed by him/her. The rules specify
the function and duties of every member of the organization. Thus leadership is reduced to a
routine job. There is little scope for initiative and subordinates like to play safe. Such a rule-
centered leadership often results in red-tape and inefficiency.
5. PERSUASIVE LEADERSHIP
In this to style, the manager still makes all the decisions, but thinks that the subordinates have to
be motivated before they will do what he/she wants them to do. It is also known as selling style
that selling ideas or views to followers.
6. CONSULTATIVE STYLE
The manager and his/her subordinates discuss the problems in hand before a decision is made, but
the manager retains the right to make the final decision.
LEADERSHIP SKILLS
A leader must have the following management or leadership skills. These are:-
1. Human skills
2. Technical skills
3. Conceptual skills
1. Human skills- he/she must be reasonably trained in interpersonal relations, especially to
motivate his/her subordinates. Interpersonal skills are needed to create and maintain a
network of contacts with people outside the chain of command. These skills are important
in supervising, monitoring and leading employees interpersonal skills enables leaders to
get the information and support they need from people outside their chain of command and
also to gain support from employees without relying on the formal authority they usually
use to obtain compliance.

33
2. Technical skills. He/she must be adequately knowledgeable in the technical aspects of the
job. This includes the ability to use knowledge, tool and techniques of a specific functional
field such as accounting, engineering, personnel, sales or manufacturing.
3. Conceptual skills- he/she must be able to view the organization in a strategic or macro
(large) terms. For example external environment interacting within the organization such
as politics, government, culture, economics etc. a leader should have mental, economics
etc. a leader should have mental abilities to acquire, analyze and interpret information
received from various sources. These skills include analytical, entrepreneurial decision
making and allocation skills.

COMMUNICATION
Communication is one process by which information is intentionally or unintentionally
exchanged between individual. It is the transfer and understanding of meaning, people in
organization and especially managers spend a lot of time exchanging ideas or information.
The efficiency and success of an organization depends mainly on its communication system.
Poor communication may result in loss of business of million shillings, loss of customers and
it can spoil the good image of that organization. Thus communication is an effective and
important tool of management.

PURPOSE OF COMMUNICATION
An organization may consist of management employees, premises, equipments, materials etc.,
but will not come to life unless communication effectively link all these parts together and co-
ordinate their activities. The decisions of management must be made known to employees and
some kind of control system arranged to ensure that these decisions are acted on. The decisions
themselves should be based on a flow of information reaching management from all part of
the organization.
Thus communication can be said to serve four major functions within any organization. These
are: - control, motivation, emotional expression and information.
1. CONTROLS- communication controls employees behavior, organizations have
hierarchies of authority and formal guidelines that employees are required to follow, such
as following their job descriptions and complying with company policies.
2. MOTIVATION- communication fosters motivation by clarifying to employees what is to
be done, how it is to be done and what can be done to improve performance, employees
feels motivated when they receive letters of recognition or any kind of feedback about their
performance.
3. EMOTIONAL EXPRESSION- communication that takes place within a working group
is a fundamental mechanism by which members express their feelings. In this way,
communication provides a release for the emotional expression and for fulfillment of social
goals.

34
4. INFORMATION- communication facilitates decision making by gathering and providing
the information that individuals and groups need to make decisions.

SENDER OR MESSAGE ENCODING CHANNEL

SOURCE

FEED BACK DECODING RECEIVER

1. Communicator or Sender- Communication process begins when the communicator or

sender has a message to communicate, communicator or serve is the person who wants to
convey the message to achieve understanding or change the behavior of the receiver. The
communicator serves as the source and initiatives the communication process.
2. Message- Message is the body or subject matter of communication. It contains words,
symbols, pictures or some other form which will make the receiver understand the
message.
3. Encoding- Encoding refers to the process of formulating ideas, thought and feelings about
a objects and events such as words, symbols, or gestures and transforming them into some
form of message which will make the receiver understand.
4. Channel (medium) - This is the carrier of the message or the media through which the
message passes from the sender to the receiver, the most common type of medium is
face-to face conversations, telephone conversation, group conferences, writer reports,
charts and internal memos, the objective of communication determines the type of
medium to be used. This is the link between the sender and the receiver of the message
i.e. - the mode of transmission of the message.
For example- a manager may choose the following channel
Oral, nonverbal and written, he can choose a one-to-one, face to face situation etc.
The choice of the channel is affected by the formulating factors.
Urgency- When the message is very urgent a telephone call may be the most
appropriate.
Importance- Important message are better communicated face to face.
Need for documentation- go for written form
Delicacy of message- For most delicate go for nut which cannot be tapped
into/copied/ edited.

35
 Cost involved- If the sender is constructed by cost the mass media may for
example be the most appropriate (in relation- to numbers intended)
Future reference-where future reference is required written message must be used.

Noise- is any factor that disturbs, confuses or otherwise interfere anything whether in
the sender channel or receiver that hinders communication must also be considered
e.g. a noisy or confined environment may affect thinking by clogging the mind,
ambiguous symbols and words may distort meaning.

N/b- Noise may be internal or external

Internal noise e.g. experienced discomfort with sender e.g. stresses, exhaustion, a dislike for
the sender or even hanger will cause message to be distracted.

External noise- e.g. phone ringing, moving objects etc.

5. Receiver- This is the recipient of the message and the communication process is
incomplete without the existence of the receiver of the message. If the receiver does not
understand or shave the perspective of the senders message, he/she may not decode it as
the sender had intended.
6. Decoding- Decoding refers to the process by which the received message is translated
into ideas, thoughts and feelings. The messages received are interpreted into things or
events that convey some meaning to the receiver. The effectiveness of the decoding
depends on the receivers relationship with the sender. Once the received message is
decoded the receiver is supposed to respond to the sender or provide a feedback.
7. Feedback- The reaction, reply or response which the receiver of the message sends to the
sender is called feedback. Feedback enables the sender to know whether or not the
message has been received and interpreted correctly.
ORGANIZATIONAL COMMUNICATION NETWORKS AND TYPES OF
COMMUNICATION

There are 2 primary organizational communication networks i.e.

a. The formal communication network

b. The informal communication network

FORMAL COMMUNICATION NETWORK

This is the communication that follows the hierarchical structure of the organization or the
chain of command.

It follows the formal, established, official lines of contact- in other words it follows the
prescribed path of the hierarchical charts and tends to be explicit in terms of who should
explicit in terms of who should be talking to who and about what.

36
INFORMALCOMMUNICATION NETWORK

Involves communication that does not follow the hierarchical path or changing command it
tells you who is REALLY talking to whom and about what

- It refers to links that have grown out of relationships between employees and
management that have little or no correction with the formal organization chart.
- The informal network is very strong in most organizations. It is usually much faster and
more accurate than the formal network.

TYPES OF FORMALCOMMUNICATION
Managers engage in various interpersonal relationships which can be reflected in the
interpersonal communication. These communication relationship can be classified as
downwards, upwards, lateral) sideward, diagonal and external.
1. Downward communication- It is the flow of information from the superior to the
subordinates. Essentially the purpose here is to communicate the policies, procedures,
programmes, orders or any other job related information to employees at lower levels. It
is characterized by high levels of exposure with low levels of feedback.
2. Upwards communication The information flow from subordinates to superiors. Such
communication is in the form of reports giving details as to progress of performance at
lower levels. Also these may be suggestions for effecting improvements in the working of
plans or policies or ideas for introducing innovations, inquiries, complaints, grievances etc.
are other examples of upward flow of communication.
3. Lateral of sideward communication This is the kind of information between subordinates
operating at the same level and under the same superior to exchange information in several
respects. Lateral communication is needed to achieve cooperation among group members
and between work groups. The sales manager may for example communicate with the
production manager about the kind and quality of goods being produced in the factory to
enable him to plan his sales campaign accordingly.
4. Diagonal communication This takes place between a manager and members of other
work groups. A manager needs this kind of communication to interact with employees in
other managers jurisdiction regarding his particular junction.
5. External communication This occurs between managers and people outside the
organization. Managers interact with different people outside the organization such as
customers, suppliers, government officials and other interest groups. External
communication helps to link the organization to the external world.
B. INFORMAL COMMUNICATION

Communication is seen as informal when its not official or sanctioned by management, Its
called a grapevine .It can begin with anyone in the organization and can flow in any

37
 direction. Grapevines prime function is to disseminate information (both management and
non-managerial) that is relevant to their needs.

- It derives its existence from employees social and personal interests, rather than from
formal organization requirements.
- N/B: RUMOURS& GRAPEVINE- are not the same
- Rumors- Is information without Factual basis can be communicated via formal or
informal channel of communication.
- Whether they view it as an asset or a liability, managers must understand the grapevine
since it is always
Present
Speedy
Largely accurate
- Managers should use it as another means of transmitting information.

BARRIERS IN COMMUNICATION
Communication problems or barriers whether arising from mechanical, organizational or personal
factors may result to distortion of meaning or filtering of information by suppression of
withholding. This will result to defeated objective. Examples of such barriers are:
1. Distortion of messages It may be due to noise in the transmission or because the
communication does not use the right words to give meaning and precision to his ideas and
interpretations.
2. Communication overloading This occurs when individuals received so much information
that most of it is disregarded.
3. Lack of attention or interest if the receiver is not attentive to the message, he will not be
able to grasp its meaning and act accordingly, thus defeating the purpose of
communication.
4. Lack of confidence in the communication If for some reasons the communicate (receiver)
has come to believe that the communication is not adequately competent, he may be
inclined to view the message with doubt and suspicion and this may defeat the purpose of
the communication.
5. Use of vague or jargon words The use of jargon written or spoken words impends
understanding and leads to breakdown in communication.
6. Improper state of mind At times the receiver may not be in a proper state of mind to
receive the message currently. If he is mentally upset and emotionally not well, this is likely
to adversely affect the reception of the message communicated to him/her.

IMPORTANCE OF COMMUNICATION IN AN ORGANIZATION

The object of communication is to secure action or reaction. Since it is the managers business to
secure his peoples willing cooperation in the information and implementation of policies and

38
programmes, communication for him assumes an important role. Thus, in every way,
communication is a part and parcel of the overall management function e.g.
1. Aid to managerial performance communication enables the managers to secure
information for decision making, to diagnose the various problems faced by him and to
decide action to be taken to solve them. It is through communication that one is able to
plan properly, to organize objectively, to direct decisively and to control correctly. It is
through communication that managers impart to the subordinates the meaning and the
significance of the enterprise aims and objectives, give orders and instructions, assign
duties and responsibilities and seeking willing and active cooperation of his subordinates.
2. Aid to coordination In an organization different activities are undertaken at different work
centers, but all these have to be coordinated to accomplish the enterprise goals. This can
be possible where members at all levels are posted with all the facts and information
relating to their work thus proper and effective communication acts as a cementing force
in uniting the members of an enterprise, well directed team.
3. Aid to job-satisfaction Individual can be made to perform better and more efficiently if
they know what they are supposed to do, what type of authority they have, what their
relationships with others in the organization are, how their work comes up to the
expectations of their superiors, when their performance is not up to the mark, what they
can do to improve their performance, and how their jobs help in the accomplishment of the
enterprise objectives. All this can be possible only if there is proper and effective means of
communication in the enterprise.
4. Aid to public relations It is only through communication that management can present
an acceptance image to the outside world. In the performance of its activities, a business
enterprise comes in contact with a wide variety customer, potential customers,
shareholders, members of public, government etc. Relationship with all these different
strata of society can be considerably improved through effective handling of the means of
communication.
5. Aid to leadership To be of any meaning, communication has to be a two way process. If
it helps the management in transmitting ideas, feelings, suggestions and decisions to
employees, it also enables the employees to communicate their responses, attitudes and
problems to the management. It enhances man-to-man relationships between management
and employees.
6. Saves time and effort Proper and effective means of communication result is a great
saving of time and effective means of communication result in a great saving of time and
efforts. The manager can easily communicate the policy guidelines and specific decisions
to his/her staff. There is no need for him to send or go to individual staff members for this
purpose. The staff members in town can report on the progress of their work without having
to visit their superiors personality.

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WAYS OF COMMUNICACTION IN ORGANIZATION

Communication media Communication methods Used mainly for

communication
Written - Official paper work mainly used for
- Information bulletins downwards
- News letters
- Company newspapers
- Company reports
- Employee reports
- Notice boards
- Manuals
- Training handouts
- Suggestion schemes
- Attitude survey
Oral communication - Mass meeting
- Meeting of reps
- Departmental meeting
- Briefing groups
- One-to-one exchanges
- Formal presentations grape
vine
Audio visual - Slides
- Tape slides
- Filmstrips
- Television/ video
- Audio tape
- Company radio
- Posters/flipchart/blackboard
Electronic - Electronic mails

Non- Verbal - Present during any

communication via speech
and some audio visual
communication
- Silence

40
 - Facial expression, body
gesture e.g. Eye movement,
distance maintained (this
can reinforce what we say
or contradict it)

N/B: the choice of the communication method will depend on the direction of
communication (upward, downward, and lateral) and also on the specific nature of the
message to be communicated. E.g.an initial communication on a staff unsatisfactory
performance- best is official memo

QUALITIES FOR IMPROVIDING ORGANIZATIONAL COMMUNICATION

1. Define specific communication goals prior to cultural communication.

2. Establish communication mechanism through which organization members can interact
regularly.
3. Facilitate frequent face to face interactions between supervisors and employees.
4. Encourage employees to express their ideas and concerns in dealing with their jobs.
5. Solicit information from employees concerning their careers and personal problems
6. Involve employees in formulating their task goals and responsibilities
7. Provide employees with timely feedback on their job performance
8. Inform employees on any change in the companys goals and policies as soon as they
happen
9. Periodically evaluate the organizations communication effectiveness.

HOW CAN COMMUNICATION BE IMPROVED (BECOMING BETTER

COMMUNICATORS)

What the sender can do to improve communication.

1. Clarify ideas before communication and examining the purpose of communication

2. Remove hierarchical barriers e.g. status- cliffs is all met to effective communication as it
creates psychological distance when makes employees filter the information.
3. Remove interpersonal barriers e.g. defensiveness
4. Be sensitive to the receivers perspective
- The communicator should be empathetic to the receiver
5. Develop and maintain credibility (this is usually measured by ones expertise on the
subject matter being communicated).
6. Avoid information over load-Occurs when individual receives so much information that
he is over whelmed by it. To prevent it. Managers often ask juniors for an excellent
summary.

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HUMAN RESOURCE MANAGEMENT FUNCTION

HRM functions include the following

a) Recruitment: The discovery of potential candidates for actual or anticipated organization

vacancies. Recruitment is an activity linking jobs with those seeking jobs. The process is
done through internal search or external success though adverts, employee referrals
recommendations, private and public employment agencies, management consultants,
temporary help services, schools, colleges, universities, professional organizations, casual/
unsolicited applicants etc.
b) Selection process: A process of thinning the pool of applicants on the basis of job
description and job specification i.e. Job Title, duties, authority/responsibility etc.
Selection process can go through 7 steps: - Initial screening interview completion of
application forms, Intelligence aptitude tests, and Comprehensive interview, Establishment
of applicants background, Physical/Medical examination, Personnel and management
acceptance or rejection applicant.
c) Training and Development: Defined as learning experience that seeks permanent change
in the ability to perform a job. It involves change in knowledge, skills and attitude.
Training is users given to low cadre employees drivers, cooks, those in clerical, production
and maintenance sectors etc.
ii) Development: Process of providing senior organization employees with conceptual
skills for performing genuine management duties. Development focuses on education and
not on training, knowledge, skills oriented. It attempts to impart reasoning,

42
 understanding, interpretation, analytical, synthesis, - conceptual skills etc. Managers be
developed through coaching, understating assignments, job rotation and committee
assignment.
d) Performance Appraisal: Defined as the evaluation of the effectiveness of the workers in
their work assignments. It is aimed at finding out individual potential. PA is important for
estimating future performance
e) Employee Compensation: Defined as cash payment from the employer to employee in
the form of benefits and incentives to motivate employees to higher productivity. An
effective compensation programme is designed to do three (3) things: Attract capable
employees to the organization, motivate them towards superior performance and retain
their services over an extended period of time. This has the effect of obtaining maximum
benefits from employees and reduction of turnover labour.
f) Separation: Process whereby a worker(s) exits form assigned job in an organization. The
following are some of the reasons which lead separation:
New career opportunities outside the organization
Dismissal
Resignation
Retrenchment
Retirement (Early or compulsory)
Death

NB: Separation is usually governed through well documented terms and conditions of service
which clearly stipulate policy guidelines on the same through pertinent code of conduct and
ethics.

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 HUMAN RESOURCE PLANNING (HRP)

Human Resource Planning ( HRP) may be defined as an attempt to forecast how many and
what kind of employees will be required in the future and to what extent this demand is likely
to be met.

It involves the comparisons of organization current human resources with likely future
needs and consequently the establishment of programs for hiring, training, redeploying and
possibly discarding employees.
HRP should result in the right people doing the right things in the right place at precisely
the right time.

PURPOSE OF HUMAN RESOURCE PLANNING (HRP)

HRP can help the management in making decisions in the following areas:-
Recruitment
Avoidance of redundancies
Training - numbers and categories
Management development
Estimates of labour costs
Accommodation requirements

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 Company HRP needs continuous re-adjustment because:-
Goals of an organization are dynamic
Environment is uncertain
New inventions
Resistance to change
Government intervention
Population changes

NB: When planning for HRP considers the organizations objectives and its strategic plan also.

LONG TERM COMPANY HUMAN RESOURCE PLANNING

This is the one which attempts to forecast about five years ahead.
The company must consider the demand for labour, its potential supply and the external
environment. By studying the interaction of all these factors it can then produce a plan
showing how many and what kind of employees are expected to be required in the future.

POINTS CONSIDERED

1. The creation of company HRP group including the managers in charge of the statement
main functions within the group.
2. The statement of HR objectives in light of the companys objectives by considering :-
Capital equipment plans
Re-organization including centralization and decentralization
Changes in products or in output
Marketing plans
Financial limitations

3. The present utilization of HR, in particular:-

Numbers of employees in various categories
Estimation of labor turns over for each grade of employees and its effect on
organization performance.
Amount of overtime worked

45
 Amount of short time
Appraisal of performance and potential of present employees.

4. The external environment of the company

Recruitment position
Population trends
Local housing and transport plans
Government policies on education, retirement, employment age e.t.c.

5. Potential supply of labour in particular

Effects of local emigration and immigration.
Effects of recruitment or redundancy by others firms
Possibility of employing part-time workers
Changes in productivity, working hours or practices

ELEMENTS OF HUMAN RESOURCE PLANS

Job which will appear, disappear or change
To what extent redeployment or retraining is possible
Necessary changes of supervisory and management levels
Training need
Recruitment, redundancy or retirement programs
Industrial relations implications
Arrangements for feedback incase modifications in the plan or company objectives
are necessary
Details on how to solve HR problems e.g. labour deficits and surpluses e.g. in case
of surplus introduces retrenchment.

SHORT TERM HUMAN RESOURCE PLANNING

This type of plan which usually covers a period of time up to one year ahead.
It is usually the most common because it is predictable
Many firms do not have the quality of management to forecast long term objectives
or they feel that the nature of the business makes it possible to look ahead for more
than one year.
Its easy to make.
We can calculate the amount of labour in terms of labour hours required in future
i.e. Labour hrs. needed in future = No of workers needed not of available working
Hrs.

46
 ADVANTAGES OF HUMAN RESORUCE PLANNING

a) The organizations should be better equipped to cope with the human resourcing
consequences of changed circumstances.
b) Careful consideration of likely future human resource requirements could head the
firm to discover new and improved ways of managing human resources.
c) Labour short falls and surpluses might be avoided.
d) It helps the form create and develop employee training and management succession
programmed.
e) Some of the problem of managing change may be foreseen and their consequences
mitigated (make them less harmful). Consultation at early stage in the process.
Decisions can be taken unhurriedly and considering all relevant option rather than
being in crisis situation.
f) Management is compelled to assess critically the strengths and weaknesses of tis
labour force and personnel policies.
g) Duplication of effort among employees can be avoided; co-ordination and
integration of workers effort is improved.

LIMITATION OF HUMAN RESURCE PLANNING

1. The type of industry: Depending on the type of work, some organization will find it
impossible to do HRP. Some trade is difficult to predict future.
2. Opposition or skepticisms among the members of management makes the HR plans un
successful.
3. Resistance to the changes expressed in the plan. So some plans are seen as threats.
4. Its difficult to forecast social and economic changes accurately in the area of high
unemployment.
5. The rapid growth in new technologies
6. Scarcity of money (Funds) to execute some of the plans.
7. Difficult to predict future

JOB DESCRIPTION

This is a written statement on what to job holder does including how he does it (method) and
why the job is done. This can only be done after undertaking a thorough job analysis.

Job analysis is a process of studying job in order to collect information relating to its operations
and responsibility, give information with response to the following:-

47
 Job content
Accountability
Standards requires
Competence
Experience
Reporting relations
Job motivation

METHODS OF JOB ANALYSIS

i) Interviews

ii) Questionnaires

iii) Dairies and reports

(iv) Conferences and workshops

(v) Through Observations

1) Observation: The job analyst observes personally what job holder does,
how and the time, the tools of work used, so that at the end they can be
able to list information of a given job. However this can be time
consuming and requires several observations, so as to get original
information. This is limited because some job aspects are not observable
e.g. experience, attitude, behavior.
2) Interview - The job analyst usually conducts personal or face to face
interviews with the job holder. Such interview only focuses on the person
and the job done; so that the employee gives his/her personal view and the
analyst records. it is time consuming and needs trained interviewers and
the skills of conducting the interview.
3) Questionnaire This is filling of a form with a variety of questions
related to the job done, the job holders and the analyst gets information
from such questionnaires.
4) Technical Conferences Methods The job analyst organizes
conferences with the job holders. She/he may invite experts who gather
information from job holders.
5) Diary Method This is a form of own job analysis whereby an individual
employee is allowed to do their own analysis by writing details in their
diaries. The job analyst extracts information from employees diaries in
order to know the details of the job done.

48
 6) Checklist and Inventory - A Checklist is a form of a questionnaire. It
has a list of items related to a given job. The job holder is only required
to indicate by ticking/crossing tasks that are included in the job done. An
inventory is an improvement of a checklist but involves recording specific
tasks undertaken by the job holder to do a given job.

Functions of Job Analysis:

It provides important data necessary for the determinant of job specification (minimum
qualification)
It provides important information for job description
Forms an important basis for performance appraisal.
Job analysis data is useful for:
a) Human resource planning and forecasting
b) Job evaluation
c) Disciplinary procedure for the employees.
d) Other functions of HRM.
Therefore job description usually comes after conducting job analysis. Job description defines the
scope of responsibility and tasks assigned.

Important Features in Job Description

1) Job Title This is the designation of a job doer. The title of the job must be clearly spelt
and constant especially in the use of terms.
2) Reporting to: - Here it is described clearly the immediate supervisor to whom the job
holder reports to directly at the same time officers reporting to the job holder.
3) Specific task. It must be described very clearly, the specific work in terms of job content
that the doer is involved in.
4) Overall purpose of the job Job description must clearly give the overall purpose of the
job to the organization in details. It should distinguish one job from another.
5) Principal Accountability- It is a description of whom a job doer is accountable to. This is
important in regulation of employees/defining the mandate in terms of responsibilities so
that their behavior is regulated.
Functions of Job Description

1) During workers recruitment, selection and placement the human resource manager can use
the information from job description to get the right workers for each job in the
organization.
2) Helps during the orientation and induction of the new employees in that it helps to clarify
what a new employee wants to know about his/ her new task assignment and reporting
relationships.
3) It is an important chalk list used during performance appraisal.

49
 4) This is important for both promotion and transfer for of employees.
5) This important tool for workers salary administration which includes designing salaries
grades and structures.
6) It provides an important tool for training employees specific skills required for specific
jobs.

JOB SPECIFICATION

This refers to minimum acceptable qualifications that an employee must possess in order to
perform defined jobs successfully. They must therefore be defined in details, the academic and
professional qualifications required of an employee in order for him/her to perform a given job
effectively it may include:-

Personality requirements-outward presentation

Interpersonal skills, social communication etc.
Academic qualifications
Professional qualifications
Age
experience

INDUCTION

This is also called orientation / initiation.

It is the process of initiating new employees to

a) Job Content
b) Job Context
Job contents entail all that pertains to a given/specific job in terms of the job contents. They
are the intrinsic factors of a given job. Which have to do with tools/ methods/ skills/
knowledge/ competence and experience.
Job contexts are the extrinsic factors of a given job -Job environment. These are factors
that are external to the job they are important because they help an employee to successfully
perform a given a job e.g. shopping centers, hospitals, banking facilities, salary, insurance
facilities etc.
A new employee requires information about the expectations and requirements of the
working environment, organization culture etc.
Induction is initiating a new employee to the organizational. The new employee needs to know
about fellow colleagues, organization structure and hierarchies, reporting structure, specific tasks,
community relationships, special programmes. All this is done to help the employee adjust to the

50
new environment. Personnel turnover/ labour turnover is quite avoidable, a number of staff that
leave the organization is due to poor induction that make them hate the organization.

Objectives of induction

1. To formulate roles to be done by new employees.

2. To give job descriptions to new employees.
3. To enhance work performance of the new employees.
4. Enables new employee to acceptor be accepted by their colleagues, who have a lot of
expectations, they feel uneasy and threatened by the new employee.
5. Enables new employees to feel secure in their new responsibilities in the organization.
6. Enables the org retain new employees in the organization.

Stages of Induction

1. Pre-Appointment period: This is usually before reporting to the organization. When a

potential employee is in contact with the organization about getting employed.
2. Interim induction This is the day of hiring/ when an employee is appointed to join the
organization.
3. Probation period- It is the period when the employee has not been offered permanent
employment, the job is temporarily given. The management is able to study the new employee
and the employee has time to study the organization. Induction period provides inductees with
information about the organization, their jobs, specific duties, responsibilities, the resources
at disposal, community terms of work, etc. usually its done by heads of department and it can
be formal or informal.

NB When does the induction stop-when an employee terminates the employment, when
leaving the organization. Induction process casts forever womb and tomb For continuing
employees, induction through training will always be conducted whenever there is change in
technology i.e. machinery and methods of doing work.

It is important tool for human resource planning in an organization.

It is an important source of feedback on the effectiveness of selection and training.

It helps the organizational researchers to carry out research in most crucial areas in order to
provide solutions.

JOB DESIGN

Def: Is a purposeful and deliberate planning of a job including its structural and social aspects
and their efficiency and competence of employees.

OBJECTIVES

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 1. To satisfy the purposes for which the organization was established through efficiency
and quality in productivity.
2. To satisfy individual employees job related and personal needs.

Jobs in organizations

There are two categories of jobs.

Jobs that are less challenging

They are;

Repetitive in nature,
Boring
Distasteful
Less motivating

Yet all those jobs are very necessary to the organization and we cant do without them.

e.g.

- Bank Tellers - Copy typist

-Gatekeeper - Secretarial

-Receptionist - Automatic elevator operator

-Maids - Guards

Jobs that arechallenging

They are;

Motivating
Non repetitive

e.g.

- Managers Work - Researchers

- Engineer - Cooking

- Surgeon - Farming

- Doctors - Teaching

- Lawyers

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Therefore a good job design should be able to add motivational levels to make the job challenging
and satisfying to the employees.

5 Job core Characteristics.

i. Skills variety
ii. Task identity
iii. Task significance
iv. Autonomy
v. Feedback

Skills Variety Refers to the extent to which a variety of skills can be used to do a given job
successfully. The HRM should deliberately design the jobs so that they become more meaningful
to the job doer as well as enhance the efficiency& effectiveness of doing them.

E.g.a Gatekeeper

Keep a register to sign in and out of the people entering and leaving the
organization.
Automation of the gate for easy opening.
Task identity refers to the extent to which task assignments are clear and clearly identifiable
to the job doer. We should come up with a job design that clearly spells out specific tasks of a job
doer so that the person knows what she/he is supposed to do.
Task significant refer to the extent which task assignment/ job is important to the job holder,
the organization and the society. The HR manager should create a job design that reveals the
importance of the job such that the organization cannot do without them.
Autonomy refers to the extent which workers hold the responsibility for determining their own
work schedules/ programmes. Therefore we need a job design that give workers freedom of choice
relating to their job operations allowing them to make decisions. At the end the worker is
motivated, efficient, innovative, initiative.
Feedback- The count to which workers know and understand how effectively they are
performing their jobs. This has to do with performance appraisal. Therefore a good job design
should/must provide for constant feedback to the workers hence they become motivated and
satisfied.
TECHNIQUES IN JOB DESIGN

a) Job enrichment (Promotions) advancement

A good job design should enhance achievement, recognition and growth. This is a job design
method of vertically loading the job (promoting) by increasing more responsibilities to the job
doer.

b) Enlargement:

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Is a job design that loads the job horizontally (adding the more tasks) to the worker to prevent
idleness. This may be however overworking the employee.

c) Job Engineering
Ensuring that more of the work in the organization is being done by machines especially the
xxx, repetitive work.

d) Social technical Approach

Involves the nature of relationships between the employees and technology used to do the
work. There is emphasizing on group work, recognizing of employees social needs. Therefore
we should come up with a job design that emphasizes group work.

e) Technical Approach
This attempts to modify the way the job doer performs assigned tasks. Mainly emphasizes on
technology and industrial engineering because those are thought to enhance efficiency,
motivation and job satisfaction through;

(i) Ergonomics Attempts are made to improve the working conditions of the people
doing the work and to remove physical discomfort at work (office setup),Seats, air
conditioners,automobiles.etc
(ii) Efficiently management programs. Emphasizes on the enhancement of the efficient
utilization of resources. In the work environment harder to reduce wastage and
sometime increase motivation of employees. Through Internal networking of
telephones reduces time wastage by walking around (intercom), computer
networking, lift & elevators.
(iii)Robotics and expert system. This involves use of robots especially to do the jobs
e.g. gatekeeper robots Washing machines
(iv) Computer Integrated Manufacturing an improvement of robotic and expert
systems. Automating the entire manufacturing in the industry such that man does
very little. This increases efficiency and most work is done by machines.

This however creates a lot of unemployment.

f) Work Scheduling Approach

This is a job design that focuses on making changes on employees work schedules to make
them flexible and be sensitive to individual needs e.g. physically challenged , the job design
should be able to recognize workers need and then integrate them with those of the
organization.

i. Flextime Allow employees to determine their own work schedules to meet

the organization goals (flexible time) e.g. employee may decide to report to

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 work at 6.00AM and leave at 3PM. Thus the worker can carry out personal
tasks.
ii. Job Rotation Deliberate rotation of employees from one job to another
reducing monotony hence exposure to skills.
iii. Compressed work week one is allowed to do a week work in lesser time.
This reduces work related fatigue and increase job satisfaction of the
employee.
iv. Job sharing approach -allows employees to share jobs especially in the areas
of their qualification. Helps to reduce monotony and demotivation. It provides
employees with offs there is no vacuum
v. Telecommunicating Allows worker to do so their jobs right in their homes
instead of going into the organizational, internet, fax machines, computer
networking. They work in their homes and send reports and information to
the organization.

JOB EVALUATION

Introduction

A job evaluation is any formalized system that attempts to determine the relative value of each job
in an organization. The major objective is to eliminate any pay inequities that may exist due to
unreasonable pay structures, although perceived inequities can never be completely eliminated.
The relative value of each job is established by identifying the factors which define value. Unlike
performance appraisal, It is not concerned with the efficiency of the person carrying out the work.

In the job evaluation, the key job elements or tasks are selected to be use as a standard with which
to compare to others. The key group elements should be representative of the key type of work
carried out. In selecting the key job elements all tasks have to be taken in to account regardless of
whether they require to be performed by a skilled, semi-skilled or semiskilled or unskilled person
or can just be performed by anyone; however, they are crutial for the accomplishment of the job
position and therefore must be considered during the job evaluation.

Job Evaluation Methods

Organizations and industries differ in operations and so do the types of job task performed in them.
Therefore, various job evaluation methods will have to be applied. There are four commonly job
evaluation methods used in different organizations, namely:

i. Job ranking
ii. Job classification

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 iii. Point method
iv. Factor comparison

Job ranking

This is the simplest and oldest of the four job evaluation methods. It is a non-quantitative method.
It is used by small organizations because there are relatively few different jobs and the evaluator
may know all the jobs well. In most cases, no attempt is made to measure individual components
of each job such as skill, effort, responsibility or working conditions as is done in other job
methods.

Job classification

Job classification, like ranking, is simple and non-quantitative. It is concerned with measuring
whole and not partial jobs. In fact, it is a predetermined number of grades or job classes. The
classification process specifies a number of grades beforehand and broad descriptions are then
written on the type of jobs to be placed in each of the grades. This is followed by evaluating each
job by evaluating each job by comparing its description with the descriptions for the grades, and
then placing it in to appropriate grade.

The job grades will range from high to low and each grade will have verbal description with
examples of the kind of job tasks that fit into it. A good classification will require extensive
knowledge about the dimensions of different jobs and the relative value of these dimensions.

Point Method

The point method is the most widely used of all the job evaluation methods. It does not compare
one job to another. Nor does it evaluate whole jobs, but defines factors by determining which job
factor will be compensated, e.g education, skills then assigning points to each job according to the
degree to which the job calls for each factor. The general nature of the work dictates what the
factors themselves will be. Such factors as education, skills, responsibility, physical and mental
effort and working conditions are normally included in the majority of the point system. The
number of points assigned to each job will determine a range of pay for that job as shown in figure
below:

Factor Point per degree

1 2 3 4 5 6 7 8
Education 10 20 30 40 50 60
Training 15 25 35 45 55 65 75
Complexity 10 25 35 45 55 65 75 85
Responsible for efforts 10 20 30 40

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 Responsibility for 10 20 30 40 50
contacts with others
Physical effort 5 10 20 30
Mental effort 10 20 30 40 50 60 70
Working Conditions 10 20 30 40 50

. The point method can often be very inaccurate if the factors selected are not appropriate or
sufficient. But it can allow for new jobs to be incorporated in to the pay structure without
difficulty. The following are the major steps for developing the point method:
i. Identifying key jobs, i.e. the jobs that are equitably paid. They are not necessarily the
most important jobs in the organization, fairy common jobs which are rather stable
well-defined. For this to happen there should be a consensus of opinion that such jobs
are equitably paid because he pay structure for the entire organization will be based
on these jobs. The best way by which to identify the key jobs. The best way by which
to identify key jobs is through salary/wage surveys.
ii. Identifying job factors which are used to determine pay levels. These factors are called
compensable factors since they are important factors for which compensation is given,
they represent the dimensions which would justify one job more than another, if all else
were held constant. The most frequently used factors are responsibility, education,
physical demands, skill, working conditions, hazards, supervisory responsibilities and
mental requirements.
iii. Weighing factors according to contribution to the overall worth of the job. The weights
assigned to the factors will reflect the values of management and society. The most
heavily weighed factors tend to be responsibility, knowledge, education, experience,
complexity of duties and supervisory responsibility. However, there can be a lot of
criticism from the unskilled workers on education factors. But this can be defended
that:
If education and skill are not heavily weighed, the final wage structure will be
distorted and inequitable.
Jobs requiring high level of skills and education will usually go unfilled in the
labour market and, therefore, there is a need to attract well qualified people.
Financial incentives are considered equitable and necessary to reward individual
who have obtained additional skills and education.

Factor Comparison Method

Conceptually, the factor comparison method is similar to the point method but is more complex.
Because of its complexity, it is not widely used. The steps in this method are:

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 1. Identifying key jobs. This is the same as in the point method, where the key jobs are
equitably paid.
2. Identifying for factor. These factors represent the most important dimension of value. The
factors include mental requirements, physical requirements, skills, responsibility and
working conditions.
3. Ranking jobs. The key jobs are ranked with respect to each of the factors independently.
4. Assigning monetary value to each job on each factor. The amount of money assigned to
each job and given factor should be consistent with how the jobs were ranked on that factor,
e.g. When the shilling amounts assigned to a job are added to all the factors, their sum
total should equal the current rate of pay. Of course, this step can be subjective and the
success of the method will depend on how carefully the shilling amounts are assigned to
each job on each factor.
5. Comparing unique jobs with key jobs. This is done factor by factor to determine how much
each unique job should be paid.

Job design and implementation

The success of any job evaluation will depend on its design and implementation. There are
four basic areas which can assist in the exercise:

i) Cooperation between management employees

Both management and employees must appreciate the value of job evaluation. For
management to appreciate job evaluation, they need to examine the costs of labour turnover
and absenteeism among other factors which may result due to inequities in the pay structure.
Employees will appreciate job evaluation when they know that salary and wages are into solely
the decision of management.

ii) Choice of evaluators

The choice of who is going to conduct the evaluation should be made from both management
and employees. This is important, particularly, where the organized is unionized. It is not
necessarily important to have a trained job evaluator so long as both management and
employees are interested and understand the objectives and benefits of job evaluation, since
they know that each job entails.

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 iii) Job descriptions

A job evaluator should have written job descriptions. Of course, in new organizations and new
created jobs there are no immediate job descriptions. Under such circumstances, a job
evaluator will need the cooperation of both management and employees in describing what is
done in the various jobs. Where job descriptions exist, they should describe each job accurately
and employees should be given a chance to examine their own job description to ascertain that
they are correct and complete.

iv) Selection of a job evaluation system

Once the exercise is complete, an organization can select the method which suits its needs.
The methods available were discussed early in this chapter.

RECRUITMENT AND SELECTION

Recruitment

This refers to the discovery and development of the sources of required personnel, so that sufficient
number of candidates will always be available for employment in the organization.

Recruitment also refers to the process of searching for prospective employees and stimulating them
to apply for the jobs in the organization.

Sources of recruitment

1. Internal sources
Transfers
Promotion

2. External sources
Advertisements
Professional magazines
Professional bodies
Employment Agencies (Bureaus)

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 Personnel consultants
Circulars/posters
Field trips (army)
Unsolicited applicants.

Internal sources

This means that an organization is recruiting from within, the people already working in that
organization.

a) Transfers
This is movement of an employee from one work place to another of from one department to
another department where a vacancy exists. It helps the organization to meet personnel
demands, at the place to which the employee is transferred.

b) Promotion
Appointing an employee to a position of greater responsibility or authority and it is another
source of personnel demand. E.g. A Human Resource Manager resigns as retires creating
a vacancy. The organization can promote the deputy Human Resource Manager to become
a full HRM.

c) Asking the present employees to recommend their friends and relatives for employment.
This can lead to favourism and nepotism hence not a very good method of recruitment

Advantages of internal recruitment

1) Increases morale and motivation of the present employees

2) Leads to a better selection because the management already knows the present
employees they are recruiting
3) It is economical since no time and money is wasted for advertisement, interviews.
4) No needs of induction/orientation since those recruited are already there.

Disadvantages

1. Inbreeding
Selection from within results in narrowing of opportunity to exercise a wide choice because
those recruited from internal sources may not be the rightful ones. If they were lazy they
will continue being lazy.

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2. Lack of originality
Internal vacancy replacement may not have the benefit of fresh outlook.

Those recruited may lack originality, Initiativeness as well as innovativeness.

External source of recruitment

This is when an organization decides to get fresh people to fill the vacancies existing in
their organization.

1. Advertisements
Whenever a vacancy exists in an organization the Human Resource Manager will place
an advert in the media asking potential candidate to apply. In the advertisement name
of the organization, title of the job, job description, job specification, the requirements,
closing dated must be included.

2. Professional Magazines

These are used to source employees with high skills of professional level. Various
professions have their own magazines where their members subscribe and get
copies, engineers, cooks, and accountants.

3. Educational institutions/ campus recruitment :

This is whereby organization liaises with the university institutes and various
colleges that train people when they want to recruit certain people. Such
organizations will write circulars, visit and even interview students especially those
who are about to clear and give them appointment letters so that upon clearing the
university they join the organization right away.

4. Professional bodies

Just like professional magazines people with certain skills usually form professional
bodies and became members. These professional bodies keep their own register for
their members and if an organization wants to recruit they go to the professional
bodies and know whom to pick e.g. KASNEB for accountants, auditors. Marketing
society of Kenya, LSK for lawyers.

4. Employment agencies (Bureau)

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These are organization that assists their registered members to obtain employment so
the potential employees take their CVs and certificates to the bureau who will in turn
look for the jobs for them at a fee. They are a link to the organization waiting to recruit
a potential employee. They help such organization to save time and trouble of
advertising by providing ready candidates for them is a short notice.

5. Personnel/Consultant
There are consulting firms which act as intermediary between an applicant and the
enterprise. They specialize in recruitment of employees.

They first get a requisition from a client company wishing to employ; they advertise
the vacancy in the leading nation newspapers, magazines etc without necessary
disclosing the names of the client employ. They then shortlist, recruit and select the
best candidate on behalf of the client organization. Then the client organization will
pay them consultancy fee.

E.g. - D/NA

- Price water house coopers

- KMPG Kenya

- Man power development

- Hawkins Associates Ltd.

- Deloitte & touch

6. Circular & posters

These are suitable for recruiting cadres of employees of messengers, cleaners, security
and therefore an organization will only put a circular outside the organization. They
can also be distributed to churches and pinned on walls asking for people to apply.

7. Field trips
An organization may send a team of experts to different places where their kind of
personnel may be found. These experts may interview them and select the best, such
field trips should be widely publicized e.g. policemen, army.

8. Unsolicited applicants

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 There are people, who either gather at the factory gates with an aim of serving as
casuals, or when they want to reach the manager by presenting themselves there or
through the phone.

Advantages of external recruitment

1. Possibility of getting the best since selective is done from wide sources.
2. Fresh air and outlook
The organization will benefit of new outlook and approach from the personnel chosen
externally. Such people recruited will work with a lot of vigor, energy, they do not have
preference, they have no biases and negative attitude as compared to those recruitment
internally.

Disadvantages

1. Expansive as costs are incurred for adverts, interviews etc.

2. Demoralization amongst existing employees. Especially when they feel they were left out
3. Orientation & Induction
Those recruited externally require to be inducted/oriented into the new organization. It is
expensive and time wasting.

4. Danger of mal adjustment

Those recruited externally may fail to adjust themselves to working in the organization
with speed as they try to learn the way of doing the work. This may reduce the productivity
of the organization.

In conclusion the purpose of recruitment is to;

i. Fill vacancies that are existing

ii. Getting the right skills
iii. Searching for prospective employees and requesting them to apply for the
jobs
iv. Ensuring that the organizations are efficient with the no of employees
required.

Recruitment should not be done haphazardly, it should be planned. i.e. it should be part and parcel
of human resource planning.

The HRM should design a recruitment policy which should indicate among other things;

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 (i) Specify the minimum and maximum age for a given post
(ii) Educational background
(iii) Experience
(iv) Need for recruitment
(v) Procedure of recruitment ( should there be interviews or not, if yes written or oral)
(vi) No discrimination based on age, gender, ethnicity, disability
(vii) No favourism in recruitment, e.g. relatives
(viii) Should be done on merit.

SELECTION
It involves screening or evolution of applicants to identify those who are the best suited to
perform the jobs which have fallen vacant in the organization.
It is a process that will lead to rejecting many unsuitable and choosing a few suitable ones.
It begins when short listing is done by rejecting all the applications that do not meet the
qualifications specified in the advertisement.
During selection the main aim is to choose the right kind of candidates that will feel the
vacant position;
In conclusion therefore selection involves matching the qualities of candidate with the job
requirement.
The purpose of selection is :
a) To choose the most qualified candidate to fill the vacancy
b) To enable the organization obtain quality work form selected candidate
c) To enable the organization minimize the cost of operation that may be incurred by
training in case a candidate is not highly qualified.
d) It will minimize labour turn over and the fore a stable working force.

Methods of selection

Selection is mostly done throw interview. Whereby all the short listed candidates are
exposed to an interview. Interviews can be oral or written or in practice.
The interview enabled the organization to clarify all that hear she/he had written in the
curriculum vitae or application letter.

Types of tests during the interview

1. Intelligence tests: Mental capability IQ of a persons judgment, understanding instruction,

reason.

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2. Aptitude test: They test once potential to learn the skills required.
3. Personality test: tests measure the behavior of a specific in terms of attitude, temperament,
maturity, emotion and personality traits.
4. Proficiency tests: measure the level of knowledge, proficiency or even skill achievement
tests e.g. candidate for a job of typist is asked to type a number of pages to test.
A driver is given a vehicle to be tested.

5. Interest tests: find out the likes and dislikes of the applicant. They help to identify the job
interests.

Conducting an employment interview

The panel should prepare an instrument for scoring marks based on the job description.
They are required to use this guide without any deviation.
The instrument must be both viable and valid.

How to make an interview an effective selection method.

Set up interview room
Make the candidates confortable and build rapport
After the interview, the panel usually ranks the candidate then the highest to the
lowest.
If they only wanted are they will pick and he will be given an appointment letter/ a
letter of employment with full details of the job, terms and conditions of
employment, job conditions, job description. etc.
Before hiring, the person is required to take a medical examination which will
indicate the fitness of the candidate.
Let medical examination be done on time to avoid wastage of time and money
dealing with unfit person.
REFEREES.

Many organizations will ask for at least 3 referees when a person is applying for a
job. These referees are expected to know the candidates very well in terms of their
qualification, experience, personality, interpersonal relations, communication and
all others.
The applying person may contact them directly to ascertain the information given
if true or false.
Pastors, Fathers, wives, husbands, brothers cannot be put as referees but people
who are professionals.

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 PLACEMENT
Selected candidates are posted in appropriate jobs and work places.
Correct placement of employees is very important because it improves job
satisfaction and ones productivity.
One is able to use his/her skills very well
It also reduced chances of labour turnover and absenteeism

EMPLOYMENT CONDITIONS.
Includes the following;
1. Employment contract
2. Promotion
3. Transfers
4. Demotions
5. Redundancy
6. Dismissal
7. Resignation
8. Retirement
9. Labour turnover
10. Discrimination in employment

Employment contract

It is an agreement made freely between the employer and the employee and must be subject
to employment law.

Conditions important for an employment contract

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 The person making an agreement must be competent to do so, in the sense they are
sane and of age
The parties in an employment contract must agree that the agreement is legally
binding
The employer should not discriminate solely on the grounds of sex or gender,
marital status ,ethnicity ,race or disability

Terms of contract

The principle obligations acquired by each in the employment contract are as follows;

The Employer is expected to;

Pay wages and salaries to the employee

Provide work and especially if the employees are on commission basis
Take reasonable care of employees
Treat employees with courtesy
Exonerate the employees from expenses and liabilities incurred in the course of
employment
Treat employees with courtesy

The Employee is expected to;

Render a personal service to the employing organization and this involves you
being physically present at all the time.
Take reasonable care when performing your duties
Obey your employee / dont insubordinate
Act in good faith towards your employer e.g. dont sabotage an employers work.
Refrain from impeding or harboring your employers business.

Features of an employment contract

Letter of engagement
Job description
Terms and conditions of employment

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 Organizations code of conduct
Scale and rate of pay
Intervals of payment
Terms of notice
Pension scheme
Procedures of voicing grievances
Normal hours of work

Promotion
Move of an employee to a job within the organization which has a greater
importance usually accompanied by a higher pay.
The job may have higher status as well as improved fridge benefits and privileges
e.g. a car allowance, driver, responsibility allowance, weekend allowance etc.

Ways of promotion

Through internal advertisement and people seek interviews of promotion.

By management position where the management sits and decides without any
interview based on the information they know about him or her.
It is a sensitive action and the Human Resource Manager should design promotion
policy
Promotion policy
1. It should be widely publicized so that everybody knows.
2. Accurate job description should be prepared for each job in order to know what
experience and grade required for promotion.
3. Consent of the employee concerned.
4. There should be no discrimination, their should be fair promotion.

Transfers

A move to a job within a company which has approximately equal importance, status
and pay.

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 Selection for transfer should be clearly outlined in the policy but should also be used
as a means of developing promising employees by exposing them to new experiences.

Advantages of transfers.

1. It is good for development of employees future promotions.

2. It is better to avoid retrenchment at the place of excess and fresh recruitment at the
place that have shortage of employees.
3. Corrects any faulty placement of workers at the time of selection.
4. Increase productivity and effectiveness of an organization, people are likely to become
more productive.
5. Increase job satisfaction and motivation of employees.
6. Expose an employee to experiences .

Disadvantages.

1. Maladjustment of employees as they try to settle down.

2. At times it is abused where the managers use it to punish the employees they cant cope
with.

Transfer policy

Should contain.

1. Accurate and complete job description of the job to which transfer is under
consideration.
2. It should indicate clearly if the job is going to affect the seniority of the employee.
3. Should indicate if the transfer is going to change the rate of remuneration.
4. Rate of transfer by employees must be fully investigated, if transfer is initiated by the
management.
5. The need for transfer should be fully explained by management.

Demotion

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A move to a job within an organization which is of lower importance

It is usually though not always accompanied by reduction in pay

Reasons for demotion

1. Unproductivity of the employee

2. Lack of qualification
3. If an employees job becomes non-existence as a result of restructuring
4. When an employee is incapable of performing his duties
5. Embezzlement of funds
6. Gross misconduct e.g. fighting ,stealing, rudeness etc.

Redundancy

It is referred to as downsizing or right sizing

Can also be referred to as retrenchment
It is when an employees services is no longer required by the organization

Caused of redundancy

1. To take advantage of technological advancement which might require fewer people to

operate the business e.g. automation of an organization or computerization.
2. An organization intention to reduce staff levels in order to cut costs of operation in
order to reap maximum benefits and profitability.
By doing so the organization will save in the money that would be used for employees
salaries.
3. When the employer has ceased / stopped to carry on business at the place at which
employee was employed e.g. closing from a branch.
4. When the employer no longer has a requirement for the work that the employee was
employed to do / carry out.
Note that jobs become redundant and not people.
Options before enforcing redundancy
1. Retraining the redundantees to deploy them in other areas or sections.
2. Redeployment within the organization.

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3. Restriction in freezing any further recruitment.
4. Restriction in all forms of overtime work not to create more work.
5. Dismissal of partime and short term contract to create work for permanent employees
6. Retire people over the normal retirement age.
7. Enforcement of early retirement for the staff approaching retirement age.
8. Seeking voluntary redundancy
However, if enforced redundancy cannot be avoided, there are several important issued to
be decided by an organization.
a. Which jobs are to be cut.
b. How are the employees going to be selected for redundancy.
c. How much advance notice will be given.
d. What degree consultation with the employee or their representatives should take place.
e. What rates of severance payment will be made.
f. Will employees be paid in lieu of notice
g. What should be done to help employees to find fresh employers elsewhere.

Methods of choosing redundantees

1. Last in first out (L.F.O) this means those who were recently employed will be dismissed
before long serving employees. This is advantages to the organization because it will
spend less severance pay. Though it will loose the vigor of the young employees. It
also retains the main experienced employees.
2. Value to the organization: This main aim is to retain better performers and dismissing
those who are less effective in their jobs.
3. Volunteers: An organization could discuss with these willing to be retrenched so that
they can by their chances elsewhere.
4. Enforcing retirement to the employees who are over the normal retirement age.
5. Early retirement -persuading employees who are aboutretire to take early retirement.
6. Selecting the employee with disciplinary cases or those with incompetent skills and
qualifications academically and professionally.

Procedures taken by an employer before redundancy.

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1. Be conversant with the acts of legislation of redundancy especially in respect to
a. Timing and terms given on notice
b. Amount of severance payment given.
2. The employer should give reasons for dismissal to the redundantees.
3. Giver the number and descriptions of the jobs involved or affected.
4. Clearly outline the methods and criteria of selecting redundantees.
5. Give the proposed time frame of the operation.
6. Outline the method of calculating severance payment.
Redundancy is a very trying moment for those to be affected. Therefore, these people
require to be carefully handled by the organization. Therefore the employer should give
the following services to the redundantees to help them cope with it.
1. Redundancy counseling. The organization should engage an expert counselor to talk
to them severally.
2. Training them on issues like finance management, entrepreneurship, writing attractive
C.Vs.
3. Show them how to contact employment agencies to be offered jobs or bureaus.
4. Advise them on how to use their severance payment to better themselves.

Dismissal

This takes place when the employer terminates the employees contract with or without
any reason. Before execution of dismissal, the employer needs to be conversant with the
law .

Types of dismissals

Fair dismissal

May be held by an employment tribunal to be fair if the principal reason was are/will of
the following:
a. Incapability of an employee, skills, health which makes an employee incompetent.
b. Gross misconduct
c. Failure to have qualifications relevant to the job.
d. A legal factor that prevents the employee from continuing work e.g. conviction.

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e. Redundancy: If only it has taken place in accordance to the law and procedure agreed.
f. If the employee breaks his contract by participating in illegal strike or any other form
of industrial action
Unfair dismissal
Dismissal may be unfair if:-
The reasons are as unstated above.
1. There is no constructive reason for dismissing
2. Thy are in breach of contract.
3. If no warning was given
In any organization theres a group of people that determine whether dismissal is fair or
unfair. These are called employment tribunal.
Things to note before dismissal.
1. Employees should be informed of the nature of complaint against them.
2. Employee should be given an opportunity to complain.
3. The employee should be given an opportunity to except in gross misconduct and
incapabilitys of working.
4. Employees should be allowed to appeal
5. Employees should be warned of the consequences in case of dismissal if a specified
improvement does not take place.
6. Employers decision to dismiss should be based on sufficient evidence after thorough
investigation (no malice)
7. The employer should take any mitigating circumstances into account.
8. The employer should act in good faith.
9. The offense or misbehavior committed by an employee should merit the penalty of
dismissal.

Remedies / verdict.

Employment tribunal establishes that the dismissal was unfair, then they can order for
reinstatement of the employee as well as the compensation for the employee.

Approaches for handling disciplinary cases.

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The approaches should be governed by the following principles of natural justice.

a. Individuals should know the standards they are expected to achieve and the rules they
are expected to conform to.
b. They should be given a clear indication of when they are failing and what rules they
have broken.
c. Except in cases of gross misconduct, they should be given an opportunity to improve
before disciplinary action is taken against them.

Procedures taken before a disciplinary action is taken.

Informal / Verbal Warning.

Informal / verbal warning is given.

Formal/oral warning is given
Final written warning which should contain a statement that if you continue with
the behavior, suspension, dismissal or any other form of penalty will be taken.
Resignation
Occurs when an employee gives his or her employer notice to terminate an agreement.
The minimum period of notice should be based on whatever was in the employment
agreement.
When you have given the notice, you are still an employee until the notice expires
Retirement
It is a situation whereby the employees employment contract expires usually guided
by the employment law.
It is a sensitive job condition hence the need of a retirement policy.
1. The age of retirement
2. Circumstances into which people require services.

LABOUR TURNOVER.

Once employees / worker become unhappy with their current employment, they may opt
to leave their current employer so that they can go on to look for other jobs elsewhere or
for greener pastures. Membership of any organization is rarely static,, it is dynamic, people

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 come in and out of employment regularly. This is referred to as labour turnover. Labour
turnover is a negative employment condition and it is not good because it indicates
shortcoming in the human resource management in a given organization.

Knowing the rates and reasons of labour turnover is important to HRM especially in HRP
and management .High Labour turnover is known to destabilize a business or an
organization. It may even deactivate those who want to maintain high levels of service and
output. It affects the positive image of an organization among the public. This has negative
consequences.

1. Recruitment is difficult as very few will be willing to join the organization.

2. The clients of the organization will have a negative image and attitude, this is likely to
reduce the sales volume.

Reasons for labour turnover.

1. Poor remuneration of salaries and related allowances. Thus the employee cannot meet the
cost of living.
2. Demotivation of employees.
Poor salaries.
Lack of participative management / Dictatorship
Poor working condition.
3. Poor induction or orientation . They have very negative image.
4. Poor management styles.
5. Discrimination
6. Job insecurity & poor scheme of service
7. Better prospects in terms of career development.
8. Poor working conditions e.g. congested offices, lack of protective clothing.`
9. Poor interpersonal relationships.
10. Personal reasons illness, pregnancy, family transfer.

Cost of labour turnover

Labour turnover can be costly to the organization and the following factors can be considered.

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 1. Direct cost of recruiting replacement
2. Direct cost of introducing replacements.
3. Opportunity cost of time spent by HRM in introducing and training the replacements.
4. Direct cost of training the replacement in the necessary skills.
5. Loss arising from little input from new staff until they become fully trained and
experienced.
6. Loss of input of those leaving before they are replaced in terms of contributions, output,
sales, customer satisfaction and support.
7. Living cost especially arising from adjustment of the pay roll and personnel adjustments
of the leaver
NB labour turnover should therefore be avoided by any organization at any cost.

Discrimination in employment.

Sound HRM is supposed to provide equal opportunities, amongst all employees in an

organization. Equal opportunity employment conditions where there is no discrimination
in employees in regard to sex, ethnicity, race, social groups, religion, disability etc.

We should not discriminate employees in the following areas of HRM..

-Recruitment -Salaries and allowances.

-Training - Disciplinary procedures - Promotion

-Motivation -Transfer -Performance appraisal

-Health and safety - Redundancy and dismissal.

Employees welfare.

Workers morale and feelings of attachment to an employing organization may be greatly enhanced
through provision of welfare services.

Welfare services may be provided for matter concerning employees which are not immediately
connected to their jobs although they may be connected generally with their place of work.

CATEGORY OF WELFARE SERVICES.

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 1. Individual / personal services.
i. Sickness of employees. Provides help and advice to employees who are usually absent
from work for prolonged periods because of illness. To help employees have a quick
recovery and return to work. The management should also keep in touch with sick and
absent employees. The sick, visit them and send them cards and flowers. This is done
to show concern.
ii. Bereavement. Employees who have lost their people through death, need advice, help,
love encouragement. The company should give help in funeral arrangement dealing
with will.
iii. Delegation of xxxx authority and responsibilities to them.
iv. Appraise them into leadership positions.
v. Involve them xxxx in decision making because the organizations welfare is their
concern.

Main reasons why people involuntarily leave their job.

1. Retirements.
Once men and women have reached their statutory retirement ages, the organization is
entitled to enforce its retirement.
2. Redundancy
3. Expiry of fixed term contract. Some firms employ people on contract basis and not in
permanent basis. Such employees leave upon expiry.
4. ILL health. Based on medical grounds.
5. Dismissal.

Absenteeism

This is the condition whereby the employees do not report for work for various reasons. When
it becomes repeated it is known as chronic absenteeism. If it is continuous for 14 working days
it is known as deserting duty,absenteeism just like labour turnover is not a good for an
organization for it leads to;

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 Reduced work production
Lead to additional overtime to cover for the absent worker
The people working overtime must be paid thus an over cost to the organization and
other related inconveniences
Failure to meet the deadlines as expected hence performance targets will not be
achieved
Need for additional clerical and supervision expenses to ensure work is done on behalf
of the absentee at times you need to make calls to inquire the reason for absenteeism
Problems of having to reschedule work or even projects

Causes of absenteeism

Illness or sickness
Poor transport thus unable to get to the office
Demotivated employees
Drunkenness and alcoholism
Domestic problems
Attitude of the employees
Nature of the job especially if its boring and stressful
Inconvenient hours of working, early reporting, working late at night etc.
Poor physical conditions in the work environment e.g. dirty offices, leaking roof,
poor ventilation, poor lighting etc.
Poor interpersonal relationships in the work environment
Poor management styles
Poor supervision styles ineffective communication
Inadequate working tools etc.

PERFORMANCE APPRAISAL.

Def: This is arriving at a judgment about performance of an individual in the past and in
the present. PA is usually done in a year to judge employees performance.

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 Principles of P.A.

1. The purpose of PA is to facilitate change in an individuals behavior, (work related

behavior) so that they are able to achieve both personal and organizational goals.
2. An appraisal methodology, emphasis is placed on getting factual information about an
employee on specific work achievement as they relate to organizational goals.
3. The foundation of P.A. should be some set standards of achievement of work known by
both the employees and the employer.
4. An appraisal system should be formalized, let everyone in the organization know about the
system/ methodology.
5. The result of the P.A. should be used to discuss performance and progress of an employee
in relations to goals attainment, performance strengths and weaknesses of an employee so
that a corrective action can be taken
6. Those doing appraisal (Appraisers) should be thoroughly trained in the purpose and
utilization of P.A. systems. Train the appraisers so that the process gains credibility and
the results of the P.A. can be relied upon. Enhance the level of objectivity.
7. The P.A. method applied should be valid. Even if used by different people at different
times it should give the same results. The P.A. system should be able to measure what it
is supposed to measure.
8. The PA. System must be reliable. It consistently gives the same results of whatever is
expected.
9. The P.A. method should be easily understood by both the rater and the rated / employee.

Choice of appraisers / appraisal method.

1. Self-Appraisal An individual employee can appraise him/herself because they are better
positioned to know their weaknesses and strengths related to work performance. They
know what they are capable and incapable to do, they know their week areas and the ones
they need to improve if they are honest

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2. Immediate Supervisor- This is the person who is very close to an employee probably on
daily basis when working, this person is best placed to give testimony of the employee. he
the closely interact with the appraise e.g. departmental manager
3. Colleague Appraiser (Peer) - Colleagues in the work place share a lot of information related
to work directly and indirectly, they are able to share their strength and weaknesses that is
work related. They can thus give adequate information of their work mates.
4. Expert Appraisal- When appraising the HRM may decide to use expert appraisers who are
qualified and specialized in different professional fields at a pay.
5. Stakeholders appraisal- They are people or group of people that an organization directly
or indirectly listen to. They include customers, shareholders etc. These people can note
your weaknesses and strengths in service delivery, public relations, efficiency and your
relationship with them. If asked to give a score of your performance they can easily do
that. Sometimes they can instantly react to your negative behavior.
6. Computer appraisal Using a certain programme, the HRM can key in employees records
on daily or monthly basis and then command the computer to process the information at
the end of the year. This gives a rating of the employee.

Problems associated with P.A.

The performance appraisal problems definitely lead us to getting wrong P.A. results, at times
our judgment about the employee will be faulty, either we rate them lowly when supposed to
be rated highly and vice versa.

1. Halo effect. The appraisal of performance of an employee may be made on the basis on
just a single trait e.g. act that is outstanding, or just a single act of performance and failing
to see the other aspects related to the job. It is possible among employees to get short term
pretenders e.g. very active when the boss is present.
2. Recency error This is when an appraiser places more emphasis on a recent employees
behavior (especially negative / positive) Some employees in an organization usually take
advantage of situations especially in the presence of those in management. If an employee
is the first one to raise an alarm when the organization premises is about to catch fire, hence
saving the organization, it may alter the appraisal of the employees rating.

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3. Personal Bias This is experienced when an appraiser allows him/her personal biases to
influence personal likes and dislikes. It can be based on ethnicity, tribe, race, gender,
religion, age.
4. Strictness and leniency error These occurs when an appraiser is either over strict or
overly lenient. The impact is that an employee may be rated quite differently by the two
appraisers at the same time or at different times.
5. Insufficient evidence. This is when an appraiser making a complete evaluation of an
employee on the basis of an analysis of first a few aspects of work performance leaving
out very important areas. This occurs when an appraiser does not have adequate
information about an employee. May be newly posted in the organization or ignorant or
failed to collect enough information. This is likely to give wrong results of the P.A.
6. Central Tendency error This occurs when an appraiser rates an employee within a very
narrow margin using words like, average, fair, moderate. This fails to recognize
differences amongst employees

Methods used in P.A

Behavior oriented rating methods.

Rating Form
A confidential form filled annually. The HOD or immediate supervisor (appraise_
fills this standard form for each employee. It includes the following details;
Self-assessment (Knowledge of work) quality
Experience
Co-operation, judgement (intelligence, decision making)
Job description and requirements.
Diligence and morale
Discipline and Conduct
Ability to communicate
Attendance.
Training undertaken etc.

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 Writing Essays
The appraised is just asked to describe an employees weaknesses, strengths,
potentials, ability, on an essay form.
Critical Incidences. An appraiser describes in writing a good or bad thing that
employee did at a particular time or incident only specific behavior is usually cited e.g.
one could be asked to outline individuals high or low productivity of a worker out of
these can make decisions about that employee.
Checklist. This is use of a pre prepared form or checklist with descriptions of an
employee in terms of work related behavior. An appraiser is provided with a series of
statements which describes job related behavior of the employee. The appraiser then
selects which statement best describes employee and award it a corresponding score.
Ranking Method. An appraiser ranks all employees form the highest to the lowest or
from the best to the worst in terms of work based performance.
Multi personal comparisons. An employee who may be outstanding in terms of the
job performance mayprovide for comparisons with others. We can compare them in
pairs or in groups.

Functions of performance appraisal.

1. Helps in determining strengths and weaknesses of individual employees so that the

remedial measures can be taken to improve the productivity of the employees if theyre not
very productive and vice versa.
2. Enables the management to determine training needs of the employees.
3. Provides a basis for promotion, demotions, transfer, or even dismissal.
4. Helps in increasing job satisfaction of employees by developing their potentials through
proper feedback mechanism.

WAGES AND SALARY ADMINISTRATION.

Wages: This is pay administered to an employee worker after work/services have been
rendered usually after a week, a day but less than a month (common in developed countries.)

Salary: Money paid to an employee after services rendered, usually after one month.(common
in developing countries).
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The single most important obligation owed by an employer to an employee is to pay him/her
wages/salaries. Wages in almost all organizations contribute to about 60% of all costs of
operating a major business. Most employers spend most of their time and effort dealing with
issues of wages and salaries.

Majority of industrial action taken by workers are concerned to issues of wages and salaries.
Because of all these issues its important to design a policy on pay. Such a policy should
contain the following:-

After how long should a worker be paid?

Define the mode of payment clearly e.g. cash, bank account, cheque
Clearly indicate the pay structures e.g. job grades, job groups
The incremental points / yearly
The related allowances and bonuses on pay.

There are three principal purposes of a payment policy in an organization.

1. To attract sufficient and suitable employees in the organization.

2. Sustain / retain employees who are satisfied
3. Reward employees for their effort, experience and achievements.

Reasons for payment

1. To fulfill the legal obligation (minimum reason)

The law requires the employer must pay the employee/worker for work done and services
given.
2. To obtain a sufficient share of the relevant labourmarkets. Therefore organizations pay
their employees to benefit from the available skills in the labour market just like other
organizations. This is a (competitive reason)
3. To keep pace with inflation rates. So that employees can be able to meet their basic life
needs i.e. food, clothing (cost of living reason)
4. To reward those performing specified roles in the organization by giving them a fair reward
because of the extra duty undertaken (Equitable reason)

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5. To provide incentives for employees, so that they can willingly and effectively render their
services (motivational reasons.)

Major determinants of payment

1. Ability to pay
2. Comparability
3. Bargaining strength of trade union
4. Supply and demand of employees in labour market
5. Cost of living
6. Government policy on payment
7. Productivity of an employee.
8. Organizational / technological charge.
9. Motivational reasons.
10. Equitable reward.
1. Ability to pay; Organizations vary in their ability to meet their wages & salary
commitments. Those that make profits and enjoy a good cash flow will find it easier to be
generous to their employees in terms of wages and salaries compared to those that are
trying / struggling to survive.
2. Comparability; In designing wages and salaries, employers have over the years compared
one sector to another one in determining wages and salaries for the employees e.g. the
private sector may compare with public sector and vice versa.
3. Bargaining strength of trade unions; The ability of the trade unions to influence pay
depends on its bargaining power. The more powerful a trade union it can negotiate for
higher salaries for its members as compared to a weak union. If the employers need for
labour is desperate and the skills required are very scarce, the unions position becomes
very strong in asking for better pay for its members.
4. Supply and demand labour; The labour market can also determine the amount of salaries
and wages payable to employees when we have high supply of skills in the market and
the corresponding demand is low, lower salaries and wages are payable vice versa.

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 5. Cost of living; when this is very high r the inflation is rising there is an enormous pressure
on the employer to raise salaries and wages for the employee in order for them to beat the
cost of inflation.
6. Governments Policy; Over the years, governments have always intervened on pay issues.
Openly they have legislations in print in order to introduce or fix a statutory incentive
policy to keep wage levels within defined limits. Governments through labour departments
have fixed minimum wage payment which they expect an employer to observe when
remunerating employees. This is meant to protect employees from exploitation by bad
employers. The government policy action is a crucial factor in pay determination.
(Employment Cap ,1919)
7. Productivity; Productivity of an employee for the organization employer is a determinant
of wages and salaries payable to the employees. The most productive employee is likely
to attract higher wages and salaries as compared to the less productive e.g. skilled
employees most the time are very productive and an organization cant do without them
8. Structural / Technological changes; An organization which is relatively stable, internally
and externally is able to implement its pay and salary policies with relative ease but an
organization undergoing massive structural and technological changes requiring it to spend
a lot of money, will find it very difficult to restructure their payment system.
9. Motivational reasons; This motivates employees hence retaining them in the organization.

Wage and salary structures.

A pay structure of an organization is the payment of workers for individual jobs. These may be
grouped into

1. Job grades / Job groups

2. Job family

Job groups / grades

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An organization determines various grades attained to each job in their job structure and for a
corresponding payment range while allowing progression form one grade to another, based on
experience, skills competence and work performance.

E.g. A, B, C D, M, N etc. each grade with corresponding payment.

In each job group, there is lower and upper salary limits.

Job family structures

This caters for separate groups / families of jobs which consist of the specific roles they play in
the organization. Each job family has its pay structure / scale. Determined by level of skills,
competence, accountability etc. Accountants, engineers, doctors, administration, management ,
operators, etc.

Importance of pay structures

1. Determinations of the entry pay point of an employee.

2. Provide scope for pay progression of an employee especially by indicating differentiation
of payment in each job grade.
3. They determine on the pay point, yearly increment, and paypoint of an employee as he
progresses from one group to another.
4. Establishes the pay range or skills for job group.
5. Specifies the basis upon which job / individuals can move between one grade to another in
the pay structure.

Types of wage payment systems

1. Time rate system

2. Price rate system.

Time rate system.

The payment is usually predetermined at given rates/ hourly, weekly, monthly. It does not
vary with the results or efforts made. Employer only pays for the time worked.

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Advantages.

1. Employees can be able to forecast their income.

2. Eliminates the need to measure the performance of workers.
3. Most suitable for jobs where work cannot be divided into smaller units.
4. Wages can easily and conveniently calculate thus estimation of labour cost is very easy.
5. In most cases no overtime rate is generally advanced under this system.

Disadvantages.

1. Can discourage more efficient workers because after all the efforts they receive the same
amount as received by the inefficient and lazy employees.
2. Requires very close supervision of employees for they show no interest in their work.
3. Tendency of employees to slake their performance without some incentive.

Piece rate system.

This is payment by results (P.B.R.) Employees are paid per unit of production / per article.
Per job done and completed. Pay is directly related to effort or individual employee output.
Most applicable for manual and repetitive operations on short time cycle. Its also used when
work is divided into uniform pieces like in a factory e.g. 100/= for every unit of production.

Advantages.

1. High levels of output can be achieved to the benefit of the employer as employees work
overtime to get much for more pay.
2. Provides an incentive for more efficient workers.
3. Provides an employer with an easy way of determining labour cost per unit of production.
4. Does not require a lot supervision of employees as workers are self-motivated.
5. Employees are more motivated to put extra effort so as to be rewarded within a short time.

Disadvantages

1. Workers can produce inferior or poor quality products in order to produce more in a short
time.

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2. The rate of payment fixed per item is often subject to bargain in order to make an
agreement. This is wasteful.
3. The operators can find ways of achieving higher earnings without commensurate efforts
i.e. learning how to beat the system.
4. Production effort is in the hands of individual employees and not the employer e.g. The
operator may decide he/she has enough and stop work abruptly without even doing all the
work for the employer. In this case, the employer suffers as the work stalls.
5. This does not ensure a stable monthly income for workers.

TRAINING AND DEVELOPMENT

Training: This is a process of increasing knowledge and skills of an employee so that they
can be able to do a given job both effectively and efficiently.

Its an organized activity designed to create change in a given employee in terms of:

Employees behavior
Employees Thinking
Employees Altitude.

So that they can be able to do their jobs more efficiently.

In industry, training implies importing technical knowledge, manipulative skills, problem

solving skills, decision making, positive attitude.

Development: Growth of an individual on issues that are work related. (Personal)

Reasons for training.

1. Higher performance; Training helps improve the quantity and quality of work done by the
employees because itincreases knowledge and skills necessary for the performance of a
given job. This leads to higher productivity and performance of an organization and
consequently higher profits realized.
2. Less learning period; Systematic training program help to reduce the time and the cost
required to realize acceptable levels of performance. It will take shorter time for a trained
employee to learn the methods of doing work compared to untrained employee.

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 3. Uniformity of procedures ;Informal training, the best methods of performing work can be
standardized, such that theres uniformity the way a given work is done by employees
irrespective of their work stations/ departments/locations e.g. bank tellers if trained in the
same way, they will do their work in a standard way even if in different branches.
4. Economy of materials and equipment: Trained employees make a better and economical
use of resources of the organization without any wastages, incidents etc. Material resources
and time.
5. Minimal supervision Training employees helps to reduce the need for close and constant
supervision of workers because with training employees acquire skills and knowledge
useful to enable them work independently. This permits management by exemption
(M.B.E.). This is delegation of responsibilities and decentralization of authority.
6. High Moral / Motivation. Training helps to improve job satisfaction and motivation of
employees by developing positive attitude, behavior, thinking, thus enabling employees to
be more co-operative, loyal or the organization thus higher productivity.
7. It facilitates delegation and decentralization of authority. Trained employees are willing
to accept new and challenging assignments hence training is a prerequisite / requirement
of an effective wage of the organization.

Types of training.

On the job training (internal training)

Off the-job training (External training)

On- the- job training methods.

Training and work done simultaneously.

1. Done within the premises of the organization.

2. Senior employees, supervisors, are the usual trainees.

Training Methods include;

1. Induction; This focuses on employees joining the organization with a sole objective of
adapting them to specialized job requirements and work methods usually done within the
organization It can be programmed or non-programmed

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2. Apprenticeship; This is the oldest form of trainings of a qualified senior worker. The new
employee is referred to as apprentice. The apprentice learns the methods of work by observing
and assisting the senior worker. Its a very common method of training skilled trades e.g.
motor vehicle mechanic, dress making, masonry, electrical arks etc. May take 2 -3 years. The
apprentice is paid less salary.
3. Delegation ; This is a process whereby the superior assigns certain duties to his/her
subordinate deliberately and in the process these people gain useful knowledge and skills as
they do the work which they can use in future when fully appraised into the positions. Their
skills involve, innovation, problem solving etc. All times the superior should delegate the
delegate authority in equal measures.
4. Promotion and transfer; In both promotion and transfers, employees take new challenges
and learn a lot to adapt to new jobs. When one is promoted, he / she gains knowledge and
skills in the new capacity of an employee. When one is transferred, he gets new knowledge
and skills and becomes more experienced. However this are abit risky as means of training
because a person may delay in problem solving and decision making in new responsibilities
they are unfamiliar with.
5. Refresher training; This is aimed at refreshing knowledge and skills for already salaried
employees especially when there are changes in the organization. So that employees dont
look obsolete / outdated. These can be done within the organization by involving experts to
train the employees.
6. Job rotation; This can be vertical (promotion) or horizontal (transfer) . The main aim /
objective is to diversify employees skills and knowledge. It may take forms of assignment of
jobs in different departments, those involved learn through observation of those working in
that department. Mostly useful in management positions.
7. Creating of Assistant to Positions; This positions are prerogative to management who
deliberately creates these positions that are outside the hierarchical structure of the
organization / and the management structure that is known and its physically made to broaden
the outlook of the trainee to prepare him/her for wider managerial responsibilities in future.
This arrangement may not there have any corresponding privileges, salary increment or
allowances because its purely for training purpose.

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8. Committee / Board membership; A committee is a specific type of management in which
members as a group are delegated authority with regard to any particular problem. A board is
a group people that make decisions;a manager will create a committee and appoint individual
employees to be members. This is a deliberate move because each committee is useful in
training members in various issues especially on problem solving, decision making. Members
interact with each other, they pool their ideas and experience with a view of solving various
organizations problems. The committees and boards enhance leadership skills.

Advantages for after the job training

1. Less costly than off job training because a training uses the normal equipment in their
normal surrounding.
2. Learning takes place on the equipment which will actually be used when the trainee is
proficient and thus we have no transfer of learning problems.
3. The trainee is in the production environment from the beginning. He/she does not have to
adjust later to the job environment as opposed to training away from the organization.

Disadvantages.

1. The instructor (usually supervisor, nearby worker, HOD), may be a poor teacher and may
not have enough time to give proper training.
2. If theres payment by Piece Rate it may discourage the instructor from training and the
trainee from learning properly.
3. The trainee may be exposed to bad methods and learn these instead of learning the more
efficient methods.
4. Valuable equipment of the organization may be damaged in the process of training which
a loss to the organization.
5. Large amount of work may be spoilt leading to inefficiency
6. Training usually takes place under production conditions which are very stressful e.g.
noisy, busy etc.

Off the job training methods.

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This is offered to employees away from their work environment.

An employee uses unfamiliar equipment and materials. The trainers are not familiar to the
employees.

Training Methods

1. Training by Management institutions;Workers are trained by management institutions

to acquire managerial skills and technology in their respective jobs e.g. Universities,
colleges, polytechnics.
2. Lecturers, Conferences & Seminars; Usually impart knowledge, they are more general
in imparting knowledge.
Professionals/ Lecturers are engaged by the organization to train employers.
Conferences provide an occasion for formal interchange of ideas, views among
employees of different enterprises. This is general training.
Seminars are better because the participants are usually involved in the due process
of training. Expert trainers in different areas of qualification are also usually
invited.
3. Brain storming ; This fits were on the job training but its widely used as off job
training method. It is a problem solving technique, it consists of evaluation of ideas put
forward to a group of people to get a solution . Thus is facilitates pooling of ideas,
knowledge and experience of different people who may be experts in different areas.
4. Role playing ; A role is a pattern of actions expected of a person during his/her interaction
with others. Thus in training this method can be used. The participant assumes certain
roles during training and they try to evaluate them just as in real situation. Participants are
assigned the roles in turns so that everyone in the group gets a chance to broaden their
experiences.
5. Simulations;Instead of putting trainees immediately to work they may be told to stimulate
their jobs using dummy materials/ photocopies etc. In this you get exposed on how an
employee will usematerials while working in the organization.

Advantages of off job training.

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1. Here the training is given by a special instructor . It is of higher quality and thus the trainee
has high quality training.
2. Special equipment is used. Therefore it has enough exposure.
3. Free from pressure of payment by results therefore the employee receives adequate
training.
4. No valuable equipment of the organization is damaged.
5. Reduces monotony of environment, equipment and people.

Disadvantages.

1. Expensive because it takes place in separate premises, instructors and equipment.

2. Sometimes there is transfer of learning difficulties when the equipment and
environment is changed.

INDUSTRIAL RELATIONS.

An industry refers to an organization that offers goods and services. The industry is made up
of the following major players.

3. The government
4. The employer / Management
5. The employees.
6. The labour union.

For the industry to achieve its objections, the four main players must co-exist in a positive
relationship. All the players in the industry are equally important and therefore a sound
relationship between them is therefore prerequisite.

Industrial relationsis mainly concerned with both formal and informal relationships between
the government, the employees and the trade union. These positive relationships between these
players will ensure there is sound industrial relations which will lead to absence of industrial
disputes between them. There will be a satisfactory situation for all. In life we need sound
industrial relations so that the industry can continue to play its role in the society.

Significance of industrial relations.

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1. Smooth industrial relations (IR) helps in progress of an economy of a country. Because
there will be increased productivity and consequently rapid economic development.
2. Good IR helps in establishing and maintain the industrial democracy, where all the main
players have a say.
3. Sound IR result in smooth collective bargaining between the labour ministry and the
management.
4. Sound IR helps the government / state in framing and implementation labour laws,
preventing unfair practices of the union and the employer.
5. Good IR results in less number of trade disputing, grievance and this will consequently
boost the morale and discipline of workers.
6. Good IR results in orderliness, effectiveness and efficiency of the economy. The
productivity and quality of goods and services is very high and there is less disputes.

objectives of industrial relations;

1. Safeguarding the interest of the labour union and the management and the state by securing
highest level mutual understanding and goodwill among the workers.
2. Avoiding industrial strife/conflict and developing harmonious relations for improved
productivity.
3. Raising productivity to higher levels because the employees are satisfied and the
relationships between them, the management and labour union is sound and they become
more productive. Employment conditions like absenteeism and labour turnover are greatly
reduced.
4. Establishing and enhancing industrial democracy where all the industrial stakeholders have
a say and all of them will contribute to the growth of the industry.
5. Eliminating possible industrial actions like, strikes, go slows, lock out etc. that come as a
result of poor industrial relations.
6. Establishing government control through legislation to regulate the industry e.g. the
government can take action on unfair employment practices by the employer. It can
safeguard against production of poor quality products. Control employees behavior by
creating a code of ethics, ensuring minimum payment.

Causes of poor industrial relations

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1. Uninteresting nature of work; Lack of job satisfaction may lead to absenteeism, labour
turnover. This can make workers result to commit the following employment vices.
corruption, stealing as a result there will be friction between them and employer.
2. Political Nature of trade unions; Today trade union leaders receive support from outside
political parties. This may result to negative relationships between the government and the
employer, the labour union and the management.
3. Low levels of wages and salaries; When wages and salaries are very low, workers lack
motivation and do less work and less participation in organizational goals, hence poor I R
in most developing countries today. Poor IR is caused by low/poor payment of wages and
salaries.
4. Occupational Instability; Job security is an important employee motivator. Therefore job
insecurity makes employees fear, get dissatisfied, demotivated and uncertain of their
future. This leads to poor IR between the workers and the employer. Such employees will
always resist change that may be introduced in the industry.
5. Poor organizational climate; This often results into poor IR. When workers perceive the
organization climate is unfavorable to them, then they will not be happy, productive,
openly they will resist change e.g. the presence of poor facilities, inadequate tools,
congested offices, high job stress, poor leadership and management will lead to poor IR .

In enhancing good working climate;

Ensure favorable working conditions for all the employees, working hours, medical
services, proper housing for employees, proper health and safety measure, good payment,
entitled for leaves etc. Good personal / Human Resource policies.

Government role in IR.

1. The government is the main player in IR and its involved mostly in provision of legislation
that requires the behavior of the employer ;
a. Setting minimum wage/salary.
b. Setting minimum job conditions , age of recruitment.
Retirement, dismissal, health and safety representations.

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2. Provision of legislation and formulation of labour unions and their behavior in the labour
market.
3. Provision of legislation requesting the behavior of the employees and the employer. The
government has a code of ethics.
4. Setting of the industrial courts that deals with labour market.
5. Appointing judges in industrial courts.

Employment act.

The law relating to terms and conditions of employment is given in the employment act 226.
This act contains conditions of employment and determines the basic requirements of the
employer and the employee relationship.

Components.

1. States the entire amount of wages and salaries earned by employee which must be paid by
the employer. These wages must be paid directly to the employee and must be paid in
Kenyan currency.
2. The wages and salaries can be paid on daily, weekly or monthly basis. The payment
procedure must be based on the agreement between the employer and the employee.
3. If an employee is fairly dismissed, then the employer must pay all the benefit up to the date
of dismissal.
4. The employer can deduct statutory contributions from the wages of employees to NHIF,
NSSF but it must be reasonable.
5. The employees are entitled to annual leave of not less than 21 days with full pay, woman
are entitled for 21 90 days of maternity leave with full pay and other leaves.
6. There must be at least one rest day for each worker.
7. Employer should provide accommodations to employees by providing house allowances
or houses.
8. Employer is required to provide sufficient supply of water.
9. The employer should provide reasonable medical services to the employee.
10. In case of death/ retirement, the employer should be able to pay all the dues.

COLLECTIVE BARGAINING.

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 Its a system whereby employees terms of employment are settled not by individual
negotiations but by agreement reached between reps of employees and the employer but the
settlement apply equally for the two groups.

Mostly the employees use their union officials to represent them and its for:

1. Better working conditions.

2. Better payment of wages and salaries.
3. Convenient working hours.
4. Standards of work.
5. Overtime rates.
6. Promotions, Training
7. Health and safety issues.
8. Employees human rights.

Collative negotiations is grounded on procedures and formal structures.

Aims of CB

1. To establish through negotiations and discussion rules and regulations, decisions and the
regulating the terms and conditions of employment.
2. Enables industrial relations issues to be handled in an orderly manner.
3. Encourages compromise, issue are openly discussed.
4. Negotiations with unions is more effective to the advantage of workers and the employer.
Advantagesof C.B.
1. It benefits the employer and employee.
2. Cheaper than individual negotiations which are disorderly and time consuming.
3. Agreement reached with recognized official trade unions will normally be accepted by
all union members.

Disadvantages.

1. Loss of personal communication between the manager and the people who work for
them.
2. May encourage them and us attitude.

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 3. May benefit members ,non members dont benefit.
4. Certain individual employees who could command higher wages if they negotiated
on their own are prevented to do so, hence this will affect their motivation and
productivity.

Negotiation / collative bargaining.

Collective bargaining therefore is fair process between the management, the labour union
and perhaps the state. Negotiation is the process by which individual groups attempt to
realize their goals by bargaining with another party who has at least some control over the
goals attainment. The employer mostly has the control over goal attainment by the
employees. Therefore the employees are supposed to negotiate with the employer.

There are many requirements needed for any negotiations to bear fruits.

High communication skills (written and verbal)

Very good in decision making.
Good in problem solving
The modern form of CB is usually integration and cooperation , each party in the C.B.
must be heard. There is power sharing. It uses the approach called win win strategy so
that the objectives of the negotiations can be achieved. It means that all are winners and
there is no looser.

Steps in C.B.

1. The negotiators (captured) begin by first of all stating their bargaining positions to the
opponents.
2. The bargainers probe the weakness and strengths in their opponents, they also probe their
bargaining positions and they tactfully try to convince their opponents to bring their
oppositions closer to what the negotiators wants.
3. The bargainers and negotiators adjust their original position in light of the opponents
reaction so that a favorable position can be reached where both are comfortable.
The bargaining position is meant to skillfully done ,with the minimum expectations by
stating the maximum expectation of the bargainers. The bargaining position is stated as if

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it is the minimum expectation in order to pressure the opponent to offer a favorable
settlement.
Negotiators & bargainers.
Before a collective bargaining process, both the management and the union must present
and prepare their negotiators in advance both side shall serve their bargaining team & then
go ahead and train them in the act of bargaining and negotiating.
They should be trained in the strategies and the tactics of negotiating. Ensure you brief
them and allocate their roles in the bargaining session.
Tactics in bargaining.
1. During opening phase, negotiators should be realistic and moderate.
2. They should explore the attitude and behavior of their opponent especially in the
opening phase of the negotiations. They could ask probing questions, listen carefully,
and study opponents strengths and weakness. No cohesion is made during this phase.
3. Phase two is the main bargaining phase. An attempt is made to narrow the gap between
the initial positions by persuading the opponents to change their original positions,
usually done by providing conditions e.g. I will do this on this condition. In this phase
the final settlement is reached amicably and both parties must pass the agreement to
both. The employer must be committed to fulfill the deal struck.

Bargaining impasses.

When bargaining process reaches a deadlock, it means the negotiations and the employer
failed to agree the settlement of a trade dispute. It may lead to industrial action in form of
a strike, a lock out, or use of third party.

Types of strikes.

1. Economic strike; This rises from the unions demand for recognition by the
organization especially when they want their union to be recognized by the
employer.
2. Unprotected strikes ; these includes when employees sit downs, go slows or walk
outs. They are partial strikes.

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 3. Sympathy Strikes; When employees are bargaining and the management refuses
to close the picket line of a different bargaining unit. Includes
Picketing
A picket is a group of employees staying outside or at the entrance of an
organization preventing people to enter there when there is a protest or a strike e.g.
when doctors go on strike, the nurses can join them in strike. This is patrolling by
the strikers in front of organizational premises preventing anyone to get the
organization. The main aim is to pressure the managers to shut down until their
demands are met.
Lock out
This is an action by the employer or management to put pressure on the
union to settle a contract on terms favorable to the employer. The employer
locks out all employees from entering the organization.
Use of third party resolution. In case of an impasse, the parties involved
can use third party in terms of ;
a. Negotiation mediation
b. Fact finding
c. Arbitration.

Mediation

A neutral third party attempts to help the parties in a trade disputes to reach a settlement of
an issue that divide them. At this point, courts are not involved. It only calls for
persuading, open communication, allowing readjustments and reassessment of bargaining
stand and making procedural suggestions and sacrifice.

Fact finding

This is a dispute resolution mechanism commonly used in public sector. Each party
submits whatever information it believes its relevant to the solution of the trade dispute. A
neutral fact finder makes a study of the evidence and then prepares a report on the facts.

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 All this is to find out the truthfulness of the information each party is using. The fact finder
then gives a recommendation publicly of a reasonable settlement of a trade dispute.

Interest arbitration

Comes in when the two above cant bear fruits. This is the process in which a third party,
collects facts and information from the primary parties in the disputes and then goes to
make decisions for them on the settlement of a trade dispute. These decisions reached are
binding to the two.

Trade disputes.

According to the T.D. acts of Kenya Chapter 234 of Kenya (Revised 1991) A trade dispute
is a difference, disagreement or even dispute between employer and employees, employer
and the trade union, trade unions and employees .

Procedure of reporting a T.D.

1. Any T.D. may be reported to the labour minister by or on behalf of any trade dispute.
2. Every report of T.D. shall be made in writing and shall sufficiently specify.
a. The employer and employees who are part of the disputes.
b. The party or parties by whom or on whose behalf the report is made.
c. The nature of authorization given by the party or parties desiring the dispute to be
reported on their behalf.
d. Each and every matter over which the dispute has resulted.
3. Every person reporting a T.D. shall without delay furnish by hand delivery or by registered
post a copy of the report thereof to each party of the dispute.
4. A T.D. case reported to the minister shall take a period of 21 days before it is executed in
case the minister requires a period to study the report before making any decision.

Power and duties of labour minister

After the minister has received the report of the TD from any of the parties concerned, he/she
may from a tripartite committee consisting of

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 The minister (chairman)
One person from employer
An employee representative

The minister after consultations and a thorough study of the T.B report may take one or more of
the following steps:-

1. Inform the parties that any of the matters over the T.D has arisen or is apparently not
suitable to be dealt with under his/her department.
2. Refuse to accept the report of the T.D where he/she is of the opinion that the matter in
dispute is barred from negotiations under the terms of a negotiation of disagreement.
3. Inform the parties that he/she accepts and rejects the reports of the T.D having regard to
sufficiency and lack of particulars in the report.
4. Refer the matter back to the parties or, make proposals to them on how they can
renegotiate and settle T.D.
5. Endeavour to affect conciliation of the two in accordance with the rules stipulated in the
conciliation of disputes.
6. Enhance further investigation of the T.D. to be made by appointing a board of enquiry, to
get more facts regarding the T.D in order to act reasonably.
7. Recommend the T.D be referred to industrial court.

Reference of trade disputes to industrial court

A trade dispute is referred to the industrial court when it has not settled through negotiations,
third party and even after the minister has tried conciliation and even appointedaboard of enquiry
and still the T.D remains unsettled. Copies of these reference to the T.D are issued to the relevant
parties of the trade disputes.

Industrial Court

Usually established by the president for the purpose of settling T.D

Not less than 2 judges appointed by the president

Eight members appointed by labour minister after consultations with the C.O.TU and
federation of Kenya employees F.K.E
The appointment is three years renewable but the judges term is 5 years.

Functions of I.C

Once the IC receives an application in writing by any of the parties in a T.D they start by
acknowledging then study it fully by fact finding before making award (judgement).The IC then
shall notify both parties and the minister for labour in whatever award they make. If the
members of an IC are unable to come up with award then the award shall made by judges who
have the full powers.

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T.D that cannot be dealt by I.C

1. If the T.D has been referred to arbitration or conciliation

2. Has not been refered to them by the minister for labour.
3. Mandatory 21 days for reporting the T.D has not elapsed since the report was given to the
minister for labour.
4. If the T.D is in the process of being settled, investigated or otherwise being determined
by other means stipulated in the law.
5. If the T.D as a certificate signed by the minister of labour accepting the T.D get all other
machinery of settling it and have not been reached(exhausted)
6. If the T.D is any part of the public sector where there is adequate legal machinery for the
determination of terms and conditions of employment.

Awards of the I.C

Awards of the IC are usually in farm of either favoring the side that wins, such awards should be
dealt with as follows:-

1. Be published in the Kenya gazette immediately and shall take effect from the date of its
application.
2. Must not be in consistent with any written law; shall respect what is lawful in the
constitution.
3. Shall with effect from its gazzetment became part of contact between the two parties in a
dispute and its binding
4. Shall be final however there could be cases of appeal.

Legal and illegal strikes

Legal

A strike (action by employees) or a lock out (action by the employer) is considered legal or
lawful if:-

1. A report of the T.P has been made in writing to the minister for labour and 21 days have
lapsed since it was reported to the minister.
2. The period of the notice specified on any recognition/registered collective agreement has
expired
3. When all the procedures have been duly followed.
4. The minister for labour has accepted report of the T.D
5. A strike or lockout is considered unlawful if the above procedures have not been
followed in such case, it is known as a wild cat

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Illegal strikes

The Minister for labour shall declare a strike illegal if:

1. The matter leading to the actual/threatened strike has been settled by a collective
agreement which is still in force.
2. The minister for labour has referred the matter to an appropriate negotiating machinery
e.g. a tripartite committee
3. There is already the machinery for negotiations or arbitration for the voluntarily
settlement of a T.D.
4. Has serious implications on other industries and the larger society e.g. nurses, doctors,
force and teachers.

Employers action wherever employees goes on strike

1) Physical protection of employers property as vehicles, offices, computersetc. during the

strike period.
2) Rescheduling of routine works in the organization during the strike period e.g.
maintenance of machinery
3) Legal action against the union that called the strike
4) Reallocation of tasks among workers not involved in the strike action
5) Stop paying the workers immediately
6) Establish team of senior managers to co-ordinate the companys response to the
strike(crisis management team)
7) Issue formal warning to the employers reminding them they are breaching the
employment contract and warn them of the consequences.
8) Continue with modalities of ending the strike through negotiations and renegotiations and
return to work formula.

Trade unions

Its an organization or association of workers formed to promote, protect and improve through
collective bargaining the social and economic interest of its members, mostly the dominant
interest of the T.U is economical.

Objectives

1. Seeking better wages and salaries for its employees

2. Seeking better working conditions for their members
3. Seeking greater job security for their members
4. Ensure workers have bargaining power against their employer through collective action
as opposed to unilateral action.

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 5. Ensure democratic is enhanced in terms of involving workers in decision making and
other forms of organizational management.
6. Negotiate for improved employees welfare
7. Negotiate for higher social security provisions
8. Negotiate for employment protection legislation

Why employers join trade unions

Because of dissatisfaction with working conditions

Try and improve their working conditions
In some cases because of pressure from present union members(isolation)
For security

ORGANIZATION

Organization is an official; any grouping formed by individual if their own social sources
Consciously coordinated social unit composed of two or more people that function on a
relatively continuous basis to achieve common goal or set of goals.

Organizational design

Process of organizing and maintaining a system of co-ordinated activities in which

individuals or groups of co-operate under a leadership towards achieving accepted goals
The process of designing is concerned with particular functions and activities and the
basis upon which the relationships between them are managed.
Organizations are not static there is constantchange taking place in the business itself and
in the environment in which the business operate and the people who work in the
business and therefore the organization must keep or re-designing.

Purpose of organization design

1. Clarify the overall purpose of the organization
2. Define the key activities required to achieve that purpose.
3. Group these activities logically together to avoid unnecessary overlap or
duplication.
4. Provide for the integration of activities and achievement of co-operative effort
and teamwork in pursuit of common purpose
5. Build flexibility into the system so the organizational arrangement can adopt
quickly to new situations and challenges.
6. Define the role and function of each organizational unit so that all concerned
know how it play its part in achieving the overall purpose.

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 7. Design jobs to make the best use of the skills and capacity of the job holders and
holders and provide them with high level of motivation.
8. Plan and implement organization development activities to ensure the various
processes in the organization co-operate in a manner that contribute to the
organizational effectiveness.
9. Set-up teams and project group to be responsible for specific processing,
professional or administrative activities, development.

Organizational analysis
Organizational review of the existing circumstances structure, process and an assessment
of the strategic issues that might affect it in the future.
It involves
External environment
Economy market and competitive factors that will affect the organization. Therefore plan
for product market promotion will be significant.
Internal environment
Review the mission, value, organizational climate, management styles, technology and
the processes of the organization as they affect the way the organization function they
must be structured to carry out these functions.

Strategic issues and objectives

Reviewing the strategic issues and objectives and this may be considered under headings
as growth,competition,market position also involves issues like availability of required
human and physical, financial resources in order to achieve the stated objectives.

Activities
Analyses what work is being done in to organization
What needs to be done in the organization to achieve its objectives
Analysis should cover what is and not being done, who is doing it, where and how
much is being done in other words all activities required properly catered for.
Structure
Analysis of the structure covers how activities are grouped together ,the number of levels
in the hierarchy, the extent to which authority is decentralized, the span of control
managers and relationship that exists between units and functions the existence of units
functions etc.

Organizational change
Def;The process of altering or varying something or somebodys behavior of the entire
organization so that it becomes different form its original status from worse to better.

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Change in the organization is very predominant it is inevitable; we experience it in the
organization every day
Examples of changes;
Structural- administrative
Technology -methods of work and machinery
Organizational cultural change
Physical/location etc.
Therefore change is part and parcel of the operations of the organization. It can be
planned (deliberately) initiated by the organization or forced (demanded) where there is
no option.
Random change (non-planned)-This can be accidental as it was not anticipated. What is
important is the way the management and the workers cope with the change. In many
organizations oftenly the employees tendency is to resist change.

Resistance to change
There are way reasons floated as to why people resist change;
1) Scarcity of resources: When an organization has no or has inadequate resources
necessary for a given change to be implemented then the recipient of these
change(employees) will definitely resist the change, however good it may be to
them and the organization]
2) Ignorance: This comes as a result of lack of knowledge. Sometimes the
organization that is initiating a change may fail to give adequate information on
the proposed change. The recipients of these changes are not likely to know the
good outcome of this proposed change to them and the organization. Ignorance
makes people resist change with no reason.
3) Inertia: This is lack of desire to change and the people want to maintain status quo
or the traditional way of doing things.
4) Apathy (lack of innovation): People therefore resist change because they are not
motivated by the top management of the organization adequately as a result they
lack interest of accepting the change.
5) Insecurity: If the proposed change is likely to bring about insecurity to the
employees job security, then the employees will resist it totally. Automation of
the production process in a factory is a change meant to improve production
levels and efficiency, however it is likely to cause joblessness and therefore
employees are likely to resist such change because of uncertainty.
6) Symbolic fear: A change may be initiated in the organization and it may affect
some treasured symbol that people were used to e.g. a separate office, a reserved
parking, companies car, and house. This may cause people to resist change.
7) Shock of news: People in the organization are usually suspicious of anything
which they perceive will upset their established routines, methods of work or even

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 conditions of employment.If they are going to be directly and negatively affected
by the proposed change, they will first be shocked and they will not readily accept
change.
8) Lack of proper communication: In situations where there is ineffective
communication and information of the proposal change,may make the recipients
of that change they resist it.
9) Competence fear: This is concerned with the ability to cope with new demands or
the acquire new skills.The implementation phase of a change may require new
competences which the employees may not possess.Therefore they will resist the
change.

Overcoming resistance to change

Gradual change: Any structural change in the organization should be gradual and not
hasty to ensure that people cope with the speed of the change for management therefore
must ensure that any change is implemented gradually or slowly to allow employers if
adjustment.It can be due in phase /steps but not at once.

Advanced Research: Before introducing and eventually implementing any change in the
organization it is advisable to carry out advanced research in order to get adequate
information related to the change.
Do the research on;
The employees attitude to the change
The stakeholders and the community
The benefits of the proposed change
The shortcomings of the change etc.
Research findings will enable the organization to have proper planning to the proposed
change.
Effective communication: There must be effective communication between the employer
and the employee /or the management who is proposing the change so that the change is
readily received by the employee. It enables the recipients of the change get vital
information so that they dont get misinterpreted of the proposed change. Therefore there
must be adequate information and mutual understanding.
Participation change: The management should involve everyone in the change process,
when proposing and implementing any change. (Democratic management).They should
enable everyone in the organization to be involved in the proposed and implementation of
the change. All employees,stakeholders,comrades all their interest and ensure their total
commitment and involvement. This implementation of the change will be easier because
the employees who are the implementers of the change were adequately involved in
planning the desired change.

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There are four types of change
a. Technological change
b. Structural change
c. People change
d. Task change

Technological change
Involves things like machines. New machinery or equipment is introduced on an ongoing
change e.g.computers, fax machines and all these will increase the speed of doing
business. Automation-It is the simplication or reduction of human effort to do a job e.g.
robots

Structural change

Refers to the type of organization principle and department used.

Organization keep on re-organizing their departments depending on the availability of the
job.

Task change

Refers to the day to day things that employee do to perform their jobs. Task change with
technology and structural changes.

People change
As task change peoples skills must also change. Some organizations hire new people
with new skills those that are required for a specific task.

Stages in a change
Managers need to understand the change process and people mostly go through four
distinct stages in the change process.
Denial ;
When people hear through the grapevine they will deny that it will happen at all
then it will affect the others but not me
Resistance;
Once people get over the initial shock and realize that change is going to be a
reality they resist the change
Exploration;

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 When change begins to be implemented employees explore the change often
through training and better understand how it will affect them

Commitment;
Through exploration employees determine their level of commitment to making
the change a success.
A change model by Russier change model
Consist of 5 steps
1. Define the change i.e. clearly stage what the change is
2. Identify possible resistance to change i.e. determine the intensity ,source and the
focus of possible resistance to change
3. Plan the change implementation-Use the appropriate supervisory style for the
situation
4. Implement the change Has 3 parts
Give the facts to the employees
Involve the employees
Provide support to the employee

5. Control the change-Follow up to ensure that change is

reinforced,maintained,implemetated and make sure the objectives aremet

Organization culture
Consists of the shared values and assumptions of how its members will behave. Managers
have largely accepted that organize culture is linked to positive organization reason.CEO
have often strong personal value that permit organization values and all those in it.
Organization can develop culture that fosters creativity it is difficult to change the beliefs
and values.
NOTE: New comers in an organization need to learn and be integrated to the organization
culture.
Organization culture is learned through primarily observing peopleand events in the
organization. Success and shared experiences also shape culture.
There are important ways that employees learn about organization culture.
i. Heroes
People who have made outstanding contributions to the organization e.g. Sam
Walton of Wal-Mart, Fredrick Smith of FedEx
ii. Stories
Public statements and speeches can also be considered as stories.
Often about founders and those who have made e.g. Sam Walton just got his
ideas while he was driving to deliver a product.
iii. Slogans
E.g. FedEx people service profit philosophy

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 McDonald: quality service cleanliness and valve
iv. Symbols
E.g. pins, jackets
v. Ceremonies
Awards for top achievers

Organizational development
It the on-going planned process of change used as a means of improving the
organization effectiveness in solving problems and achieving its objectives.
Organization development techniques
Training and development
Performance appraisal
Grade organization development
Survey feedback
Force field analysis
Team building

EMPLOYEE HEALTH, SAFETY AND

WELFARE

Introduction
Organizations have both legal and moral obligations to provide health and safe working
environments as well as ensuring the total well -being of their employees. Organizations should
be concerned with the employee's general health (both physical and mental) for both economic
and humanitarian reasons. Employees are the most important resources any organization can have.
The employees' total well-being is not only important to themselves but equally so to the employer.
Health
This is an employee's freedom from physical or emotional illness. The provision of any health
program will vary according to the location and size of the organization, the kind of work
performed, and whether employees include women as well as men and their proportion in various
age brackets. An ideal health program would include the following features.
A stated health and medical policy.
Adequate health facilities according to the size and nature of the organization; these may
include first aid and an emergency dispensary.
A registered nurse and a doctor or part-time services of a doctor.
Medical consulting facilities.
Periodic medical examination of all employees exposed to health hazards.
Availability of facilities for voluntary periodic physical examination for all employees.

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 In and out patient schemes.
Full or subsided medical insurance cover.
Medical insurance cover for immediate dependents.

Safety
Health and safety go hand in hand. Safety is the protection of employees from injuries due to work
- related accidents. These accidents are unplanned and Uncontrolled events) which can results in
damage - both human beings and to property.
Since organizations provide the work and the physical plant, office or establishment, it should be
committed to doing everything within reason to protect employees from risks associated with
spending their working days in those premises. Accidents need not necessarily occur in
manufacturing or production establishments. They can occur in the office or while one is driving
a car on duty. Whatever the accident, it is costly. The costs of accidents can be categorized as:-
Direct costs-arising from lawsuit settlement.
Indirect costs which may include:
a) Cost of supplementary wages or salaries paid to injured employees.
b) Loss of production caused by the accident.
c) Cost of training a new person to take the injured employee's place.
d) Cost of supervisors and staff investigating, recording and reporting the accident.
e) Loss of employees' morale and community reputation in the case of serious
accidents, particularly fatal ones.
f) Cost of damage to machinery, equipment, tools materials and plant.
Causes of accidents
These can be classified as:
Technical
Human

Technical
These are unsafe working conditions such as deficiencies in plant, machinery, equipment, tools,
materials and the general working environment. These would include improper lighting, poor
machine guarding, poor housekeeping, excessive noise, inadequate ventilation and inadequate
working space.

Human
This would include unsafe behaviors such as deficiencies of the individual, e.g. recklessness,
improper attitudes, inability to perform the job, daydreaming, lack of training, ignorance and even
poor physical and mental health.

Approaches to safety problems

Engineering
Selection
Line and staff

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Engineering
This is concerned with the physical and psychological environment and concentrates on reducing
technological hazards by redesigning machines equipment and working procedures.

Selection
This involves identifying the physical and psychological characteristic that makes an individual to
be likely to cause accidents. There are people who are always tumbling down -dropping things
regardless of where they are. Whether driving a car, pouring tea or even counting money, they
make mistakes. Although this example is of the extreme, their idea is to identify employees with
few if any of these sorts of tendencies;

Line and staff

To a large extent, the attitude of the rank and file towards safety is a reflection of the attitude of
their immediate superiors. Line managers should set examples not merely by telling but by
demonstrating the seriousness of safety measures. Accidents are partly the fault of individuals
partly of technology and partly the result of such factors as group attitudes and improper
supervision. In light of this, safety must be considered as the responsibility of the whole
organization; any attempt to departmentalize it may inevitably lead to confusion and inefficiency.
A safety program could succeed through:
Formulation of safety policy that aims at making the place of work safe in all aspects. Such
a policy should be in writing and issued as an official statement by to management.
Safety education for all levels.
Accident analysis.
Enforcement of safety rules.
Regardless of the measures taken, attention to safety should never be relaxed. New methods of
production come in and are often accompanied by new risks. E.g. where production of certain
products or provision of services required much concentration and long hours, there is a likelihood
of rising accident rates. Therefore, care is needed even if it means discouraging employees from
such long hours despite their desire to work overtime.

Welfare
Welfare is concerned with the total well-being of employees both at work and at home. There are
three types of employee welfare:
Financial
Recreational
Facilities
Financial
These include the provision of pension schemes, insurance schemes, property purchase, stock
purchase and saving plans such as savings and credit cooperative societies. Al l these are paid for
through a check off system.

Recreational

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It includes sports facilities and other recreational activities and facilities.

Facilities
These include medical services, housing, cafeteria, and transport to and from work. Some of the
welfare benefits are required by law and are statutory, e.g. in Kenya, pension schemes are provided
for under: Pensions Act Cap 189, Provident Fund Act Cap 191 and National Social Security Fund
Act Cap
258. For medical cover, there is the National Hospital Insurance Fund Act Cap 255. But many
organizations supplement these with programs of their own. Other benefits are provided
voluntarily and in some cases through collective bargaining or union demands .The Retirement
Benefit Authority (RBA) has been established specifically to deal with this. All employee welfare
is undertaken with the understanding that there is a return to the organization in terms of improved
employee productivity and morale. Anorganization should provide only those benefits, which
employees' need and whose absence will affect their performance.

HUMAN RESOURCE RECORDS

Introduction
Assembling and maintaining accurate employee information is of vital importance to any
organization. The recording procedure must not only provide for this, but must also ensure that
updated information is maintained throughout the organization.

Record keeping
Records provide information upon which proper human resource utilization can be planned and
controlled. The information stored in these records can only be useful if it is accurate and up to
date.
Record keeping differs greatly from organization to organization and from industry to industry.
There are certain procedures that are common to all forms of records:
General
Duplication
Need
Simplicity
Speed and Accuracy

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 Uniformity
Understanding by others
General
Most records are kept so that the past performance or actions may be known and compared with
the present or used as a basis for future plans and decisions.

Duplication
Before deciding to keep a record, a check must be made to ensure that the same information is not
already kept elsewhere and access to it is easy. In this case, there is no point of duplication On the
other hand, if access is not easy, then it is proper to keep a duplicate (copy).

Need
Far too many records are kept to which no reference is ever made. The effort involved in keeping
them is thus wasted. One must be convinced of the need to keep records.

Simplicity
When deciding to keep a record of any kind, there is always a temptation to include a lot of extra
information because it is handy at the time or might conceivably be useful later on. There should
careful consideration of what is essential to the organization, its purpose and anything else that
ought to be discarded. Records, which include unnecessary details, are a waste of time in both
compiling and referencing.

Speed and accuracy

Inaccurate records are useless. Care should be exercised in checking the accuracy of information
recorded. The information should be recorded immediately after the event has taken place. Not
only should entries be speedy but also the form of record should be such that speedy reference is
facilitated.

Uniformity
Standard systems and procedures have to be established in record keeping, all records of similar
kinds should be kept in a uniform manner, e.g. paper, index card and bound books should be of
the same size throughout.

Understanding others
It is important that records are kept in a manner that the user(s) will understand their purpose and
how to use them.

Contents of personnel records

It involves the documentation of the following:
Application letter of employment
Engagement form

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 Advice to wages/ salaries and other departments of the new engagement
Follow up of completion of engagement papers
Open file for the employee
Making out an index card for the employee
Notification of changes affecting the employee
Performance appraisal
Sickness reporting and absenteeism
Job grading/evaluation
Recording qualification for promotion selection
Contributions (money) to existing schemes or new ones
Merit rating and wage/salary review.
Purpose
The purpose for keeping records can be for one or all of the following:
Promotion
Statistics
Wage/salary increments
Up-to-date records
Testimonials
Disciplinary action
Training
Transfers

Human Resources Statistics

The recording of human resources statistics is essential for the implementation of the personnel
policy. The information is recorded and stored by the human resource department.
However, most of this information is provided to the human resources departments by other
departments. The information relating to personnel can be classified under:
Individual Statistics

Group Statistics

Individual Statistics
These statistics include the following:
Age, date and place of birth and marital status.

Employment particulars posts held in previous and present

employment, date and reason for change.

Absence due to holidays accidents, sickness and unauthorized

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 absenteeism.

Merit ratings, promotion, demotion and transfers and present

employment.

Qualifications academic and professional.

Wage/salary increments.

Special abilities and training undertaken while with the present employer
and training needed.

Group Statistics
This information includes;
Attendance.
Absenteeism.
Application received for employment.
Accidents reported and treated.
Earnings weekly, monthly and annual average.
Number of employees male and female, fulltime and part time.
Labour turn over with reasons.
Overtime hours, amount paid and reasons.
Transfer and reasons.
Training.
Welfare.
There are three important types of statistics, which should be kept by virtually all
organizations. These are:
i. Absenteeism
ii. Accidents

iii. Labour turnover.

Absenteeism
To develop a meaningful measure of absenteeism may not be easy due to the problem of
distinguishing between voluntary and involuntary absenteeism. Every organization needs to
formulate its own policy as regards absenteeism what is acceptable and what is not. It should also
be able to develop mechanisms of detecting voluntary and in voluntary absenteeism.
There is no rate which is universally acceptable, but an absence should be justified by the absentee.
Excessive and unjustified absenteeism must be scrutinized and appropriate corrective measures
taken.

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Accidents
The information provided by safety records can be used in managing a safety program and in
conducting accident research. Accident records can make it feasible to examine areas with high
incidence rates in order to determine the causes of accidents compare rates with other similar
organizations and reexamine trends in accidents so as to evaluate the existing safety programs.

Labour turnover
Labour turnover can be an expensive affair for the organization. However, all organizations must
keep records of labour turnover and its rate calculated to ascertain which areas are frequently
affected and has a high labour turnover rate.

Storage, custody and protection of records

Under normal circumstances, record must be kept and protected for future use.

Storage
The records can be stored in the following format:
Index card
Folders
Envelopes
Diskettes or magnetic tapes this is only where electronic data processing (EDP) is
available and used.

Custody
Decision should be made as to where the records will be kept. Any one of the following can be
used.
Separate records office
Human resources department
Salaries department
Private offices of top executives

Protection
Records must be protected against fire and theft. The following can be used for protection
purposes.
Fireproof cabinets

Photocopying
Microfilm
Diskettes.
Besides the above precautions for security, there should be a proper location
for storing the information, restriction on accessibility and careful handling
in transmission.

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