INTRODUCTION

• Human resources (people) are the most

important elements in building any successful
organization. People must be managed so that
the goals of any organization can be realized.
Companies today are recognizing the
importance to people in meeting the goals of
the organization.
 DEFINITION OF TERMS and concepts
Human Resource (HR):
 Refers to the sum total of all inherent abilities, knowledge and skills,
represented by the attitudes, aptitudes and talents of the organization’s
work force
 Other related terms are: People, HC, employees, workers,
labour, manpower, personnel, workforce etc.

VARIOUS DEFINITIONS OF Human Resource Management:

 Strategic approach to acquiring, developing, managing and gaining
commitment of the organization’s work force
 That process of planning, organizing, directing or coordinating the
organization work force, usually with a purpose of improving productivity
and effectiveness and perhaps efficiency of the organization
 DEFINITIONS and concepts
 It is a process and philosophy of acquisition, development,
utilization and maintenance of competent human force to
achieve goals of an organization in an efficient and effective
manner.
 Concerned with human b eings in an organization.

 HRM is a series of integrated decisions about employment

relationships that influence the effectiveness of employees
and organizations
 HRM is a strategic and coherent approach to the
management of an organization’s most valued assets or the
employees, who individually and collectively contribute to
the achievement of it’s objectives
 DEFINITIONS

 HRM is concerned with the human side of the management

of enterprise and employees relationship with their firms.
• HRM deals with staffing, performance, change
management and administration objectives.
• HRM in the process of acquiring, training, appraising and
compensating employees and attending to their labor
relations, health and safety and fairness concerns.
 HRM and other Related Terms:
HRM is also referred to as;
 Personnel Management-traditional way, hrm is modern

 Personnel Administration

 Man-Power Management

 Human Resource Administration

 Industrial /Employee Relations

 Human Capital Management

 
 Differences between personnel department
and human resource department
• Personnel department
 It’s a support department responsible for recruitment,
training, welfare ,termination of staff
 Gets staff trained to meet aims of the business ( Narrow
scope)
 Department is responsible for staff welfare-supply of drinking
water, washing facilities, accommodation for clothing facilities
for sitting, first aid.
 Recruits and trains for specific jobs
 Staff recruited and trained to slot into hierarchy of the
business.ie hierarchy gets reinforced
 Human resource department:

 It has a higher status, its important in the corporate

planning and strategy of a business
 Supports the needs and ambitions of staff to keep them
contributing to the business- broad support
 Staff welfare not centralized to the hrm dept. its a
responsibility of all managers
 Recognizes each employees as an individual with
potential . Staff are not tied to one fixed job role
 All employees share the same vision and common aims
so that hierarchy becomes less important
 Hrm functions/ practices /aspects

 Deals with quite a number of diverse issues as follows:

• A) Human resource planning: is an attempt to forecast organizational
future human resource needs and is normally done through an analysis of
the present employees. It focuses on both short term and long term needs.
• B)Recruitment involves locating and attracting adequate qualified human
resources to fill vacant positions. This is done through advertising, search in
schools and through advertising agencies. The vacant positions are also
filled through promotion of existing labor force.
• C)Selection involves short-listing applicants by screening them through
interviews, testing, checks and medical examination.
• D) Placement: giving actual job to the most qualified
• Training and Development: this is training and
developing employees to do their work efficiently
and effectively. Training is the impartation of
proficiencies and knowledge that is specifically
related to a narrow area of employment. Training
enables employees acquire new knowledge, learn
new skills and therefore behave differently.
Development is individual growth and self-
realization in a broad area.
• Compensation: this involves determining adequate and
equitable remuneration of the employees. The personnel
manager is guided by wages and employment act that sets the
minimum wages.
• In deciding compensation the managers takes into account
• i) the basic employee human needs,
• Ii) job requirement,
• Iii) legal provisions,
• Iv) organization ability to pay
• V) also the amount of salaries offered by competitors in the
same industry and region.
• Maintenance: this is provision of healthy working environment by
ensuring that employees are not exposed to hazards like dangerous
substances or chemicals especially in factories. HRM must provide good
working conditions that keep employees motivated. The HRM managers
provide recruitment facilities, housing, transport, medical and insurance
cover as well as saving and pension schemes.
• Knowledge management: this is developing process for capturing and
sharing knowledge to enhance organizational learning and performance.
• Job and role analysis: this is analyzing the content and competency
requirements of job and roles in order to produce job descriptions or
role for organization
• Employee counseling process of assisting employees with help and
supporting during tough times.
 Performance management the process of creating a work environment
which pple are enabled tp perform to their best of their abilities
 Collective bargaining: process of negotiations between employers
and a group of employees eg on wages and other condition of
employment .
 Industrial /Employee relations; refer to a company efforts to manage
relationship between employers and employees
 Health and occupation safety issues –safety gadgets , fencing
machinery, hoists and lifts, good constructed machines, chains, ropes,
avoid inexperienced workers sound constructed floors, stairs, means
of access, precautions against dangerous fumes inflammables dust,
gas prevention of fire
 CHARACTERISTICS OF HRM

 SUMMARY:
 Diverse; many models and practices eg havard and Michigan
models , hard and soft., practices
 Strategic in nature with an emphasis on integration
 Commitment-oriented
 Based on the belief that people should be treated as assets(human
capital)
 Unitarist rather than pluralist, individualistic rather than collective
in its approach to employee relations
 A management-driven activity-the delivery of HRM is a line
management responsibility
 Focused on business
 Ever evolving as a function - Broad
 Application of industrial psychology - Vary across cultures
 CHARACTERISTICS OF HRM
1. The diversity of HRM –Diverse models of HRM
 The characteristics of HRM are by no means universal.
There are many models, and practices within different
organizations are diverse, often only corresponding to the
conceptual version of HRM in a few respects
 Models-Harvard & Michigan models
 HRM Practices- HRM practices are diverse and also vary
from organization to organization because it is policy driven
and is also influenced by the nature of the work force, type
and size of the organization
VERSIONS OF HRM
 ‘hard’ and ‘soft’ versions of HRM
 CHARACTERISTICS OF HRM
 The hard version of HRM emphasizes that people are
important resources through which organizations achieve
competitive advantage
 These resources have therefore to be acquired, developed
and deployed in ways that will benefit the organization. The
focus is on the quantitative, calculative and business-
strategic aspects of managing human resources in as
‘rational’ a way as for any other economic factor
 CHARACTERISTICS OF HRM
 The soft version of HRM traces its roots to the human-relations
school; it emphasizes communication, motivation and
leadership
 It involves ‘treating employees as valued assets, a source of
competitive advantage through their commitment, adaptability,
and high quality(of skills, performance etc )
 It therefore views employees as a means rather than objects
 The soft approach to HRM stresses the need to gain the
commitment-the ‘hearts and minds’ of employees through
involvement, communications and other methods of developing
a high-commitment, high-trust organization. Attention is also
drawn to the key role of organizational culture
 TodaysHRM is a combination of both versions
 CHARACTERISTICS OF HRM

 The hard model of HRM is also defined as a process

emphasizing ‘the close integration of human resource
policies with business strategy which regards employees as
a resource to be managed in the same rational way as any
other resource being exploited for maximum return
 In contrast, the soft version of HRM sees employees as
‘valued assets and as a source of competitive advantage
through their commitment, adaptability and high level of
skills and performance
 It has, however, been observed that ‘even if the rhetoric of
HRM is soft, the reality is often hard, with the interests of
the organization prevailing over those of the individual’
 CHARACTERISTICS OF HRM
2. Strategic nature of HRM –strategic integration with
strategic business planning
 Perhaps the most significant feature of HRM is the
importance attached to strategic integration, which flows
from top management’s vision and leadership, and which
requires the full commitment of people to it
 this is a key policy goal for HRM, which is concerned with
the ability of the organisation aspects of HRM coherence,
and to encourage line managers to incorporate an HRM
perspective into their decision-making
• Traditionally, functional HRM was called personnel
management i.e. the department that was involved in
managerial functions regarding employees (dealing with the
human resource (employees)). It was part of management
 CHARACTERISTICS OF HRM
 It then shifted HRM and the functional HRM became
strategically driven, more unified and it had a wholistic
approach embracing everything about employees. HRM
became more of pro-active and so it was just the naming of
the function
 Basically, HRM is fusion of industrial relations and
personnel management that created a new discipline and
this discipline is integrated and fused
 HR policies should be integrated with strategic business
planning
 A feature increasingly associated with HRM is a stress on
the integration of HR policies both with one another and
with business planning more generally
 CHARACTERISTICS OF HRM

3. It is commitment oriented:promotion of commitment

 One of the HRM policy goals was the achievement of high
commitment-‘behavioural commitment to pursue agreed
goals, and attitudinal commitment reflected in a strong
identification with the enterprise
 HR may be tapped most effectively by mutually consistent
policies that promote commitment and which, as a
consequence, foster a willingness to act flexibly in the
interests of the ‘adaptive, foster a willingness in employees
to act flexibly in the interests of the ‘adaptive organization’s
‘ pursuit of excellence in employees
 CHARACTERISTICS OF HRM
4. Based on the belief that people should be treated as
assets (Human capital); valuable
 The notion that people should be regarded as assets rather
than variable costs, in other words, treated as human capital
 Human resources are valuable and source of competitive
advantage
 People and their collective skills, abilities and experience,
coupled with their ability to deploy these in the interests of
the employing organization, are now recognized as making
a significant contribution to organizational success and as
constituting a significant source of competitive advantage
 CHARACTERISTICS OF HRM
5.Unitarist rather than Pluralist ; individualistic rather
than collective in its approach to employee relations-
employee shares same interest as employer
 The HRM approach to employee relations is basically
unitary-it is believed that employees share the same
interests as employers
 This contrasts with what could be regarded as the more
realistic plularists view, which says that all the organizations
contain a number of interest groups and that the interests of
employers and employees do not necessarily coincide
 Individualistic-HRM is individualistic in that it emphasizes
the importance of maintaining links between the
organization and individual employees in preference to
operating through group and representative systems
 CHARACTERISTICS OF HRM

6.HRM is a management-driven activity- owned by

management
 HRM can be described as central, senior management-
driven strategic activity that is developed, owned and
delivered by management as a whole to promote the
interests of the organization that they serve
 CHARACTERISTICS OF HRM
7. Focused on business values-Surbodinating interest of members
to those of enterprise
 The concept of HRM is largely based on management and business-
oriented philosophy
 It is concerned with the total interests of the organization- the
interests of the members of the organization are recognized but
subordinated to those of the enterprise
 Hence the importance attached to strategic integration and strong
cultures, which flow from top management’s vision and leadership,
and which require people who will be committed to the strategy,
who will be adaptable to change, and who will fit the culture
 HRM policies are adapted to drive business values and are modified
in the light of changing business objectives and conditions
•  
•  
 CHARACTERISTICS OF HRM
8.HRM is ever evolving as a function i.e. being shaped by
environmental forces like technology, demographics, economics
factors, political/legal forces, natural forces, socio-cultural.
9.HRM is also very broad raging from management functions
(Planning, controlling, directing) through monitoring of performance
and recommending remedial actions/Covers all levels, categories of
pple n management and operational staff
10.HRM perspective vary across cultures meaning each culture puts a
different emphasis on what constitutes the HRM or what is the
essence of HRM e.g. high potential among employees, reward to
employees who respond to customer needs
11. Continous process : from hr planning, recruitment, selection,
placement, socialization, development, , training n development
career development), utilisation9 job design, motivation,, pm, reward
management) maintenance (labour relations, employee discipline,
grievance handling, welfare, termination)
• 12. Service function: not a profit centre, it serves all other
functional departments. It’s a staff function, a facilitator
• 13. regulatory friendly: hrm function must be discharged in
a manner that legal dictates are not violated equal
opportunity and equal pay for all inclusion of communities
in employment, tribes , non violation of human rights
• 14.Human relations philosophy: basic assumption is that
employees are human beings and not a factor of
production like land, labour, or capital. Recognises
individuality and individual differences
 AIMS OF HRM

 The overall purpose of HRM is to ensure that the

organization is able to achieve success through people
 Research has shown that HRM systems can be the source of
organizational capabilities that allow organizations to learn
and capitalize on new opportunities
 The aims of HRM can as such be captured in the following
aspects or may be seen from these dimensions as discussed:
1. Resourcing and development
 To ensure that the organization obtains and retains, skilled
and competent committed and motivated workforce it needs
at all times to attain its objectives
 AIMS OF HRM
 This involves taking measures to assess and satisfy current
and future people needs and to develop the inherent
capabilities of people- their contributions, potential and
employability- by providing learning and continuous
development opportunities
 It involves the operation of rigorous recruitment and
selection procedures, performance-contingent incentive
compensation to the needs of systems, and management
development and training activities linked the business
 It also means engaging in talent management-the process of
acquiring and nurturing talent, wherever it is and wherever
it is needed, by using a number of interdependent HRM
policies and practices in the fields of resourcing, learning
and development, performance management and succession
 AIMS OF HRM

 Human capital can be regarded as the prime asset of an

organization and businesses need to invest in that asset to
ensure their survival and growth

2. Valuing Employees
 HRM attempts to enhance motivation and commitment of
competent employees through well designed policies and
strategies which ensure that people are and feel valued, well
rewarded for who they are, what they do and achieve and
for the level of skills and competence they reach
 AIMS OF HRM

3. Healthy Industrial Climate

 HRM aims at creating a climate in which procedure and
harmonious relationship can be nurtured through
partnership between management and employees
 It introduces high commitment management practices which
recognize that employees are valued stakeholders, indeed
valued partners in the organization and help to develop a
climate of cooperation and mutual trust
 The aim is to create a climate in which productive and
harmonious relationships can be maintained through
partnerships between management and employees and their
trade unions
•  
 AIMS OF HRM

4. Knowledge Management
 Knowledge management is any process or practice of
creating, acquiring, capturing, sharing and using knowledge,
wherever it resides, to enhance learning and performance in
organizations
 HRM aims to support the development of firm-specific
knowledge and skills that are the result of organizational
learning processes
 AIMS OF HRM

5. Meeting diverse needs

• HRM aims to develop and implement policies that balance
and adapt to the needs of its stakeholders and provide for
the management of a diverse workforce, taking into account
individual and group differences in employment, personal
needs, work style and aspirations and the provisions of
equal opportunities for all
6. Bridging the gap between rhetoric( words) and reality
 There is generally a wide gap between the sort of rhetoric
expressed and the reality
 Managements may start with good intentions to do some or
all of the HRM practices but the realization of them-‘theory
in use’- is often very difficult
 AIMS OF HRM
7. Achieving Organizational effectiveness
 Distinctive human resource practices shape the core
competencies that determine how firms compete
 Extensive research has shown that such practices can make
a significant impact on firm performance
 HRM strategies aim to support programmes for improving
organizational effectiveness by developing policies in such
areas as knowledge management, talent management and
generally creating a great place to work- the big idea which
consists of a ‘clear vision and a set of integrated values’
 More specifically, HR strategies can be concerned with the
development of continuous improvement and customer
relations policies
• 8. To improve the service rendered by the enterprise to
the society through better employee morale
• 9. To attain maximum individual development ( self
development)
• 10 To ensure workers are satisfied so that they work freely
• 11. to create facilities and opportunities for individual or
group developments so as t match it with the growth of
organ.
• 12. maintain high employee morale, training n
development
 HUMAN RESOURCE PLANNING
DEFINITION:
•Refers to the process of assessing human resources needs in the
management of organization objectives
•It involves making plans to ensure that competence and stable workers are
employed.
•In practice, HRM planning is concerned with the demand and supply of labor
for now and future needs of organization. It also deals with problems arising
from the process of assessing and forecasting.
•The process of HRM planning involves analyzing the skills that are in the
employees and also analyzing the skills that exist in the external labor market
•HR planning involves forecasting the employee likely to leave the
organization, promoted, transferred and retire. It goes beyond forecasting to
plan
 PURPOSE OF HR PLANNING
•It co-ordinates demand and supply
•It integrates human capital with the firm strategies
•Makes the HR related decisions consistent and integrated
•Caters for long term and short term organization and also at the same time individual needs
•It improves efficiency of operational strategies.
•It controls the level of workforce.
•Ensures proper HR forecasting is done
•Ensures HR cost are reduced and are within the reasonable budgets
•It reduces shocks and balances i.e. ensure that there are no skills shortages and surpluses
•Helps in making all HR related decisions recruit/training, development, etc
 
 
•  
•  
 ADVANTAGES OF HRPLANNING
• Ensure that the organization has the right number of employees at the right time (quality & quantity).
• Helps to plan for the future needs.
• Helps in acquisition and nurturing the skills that take time to develop (saves cost of recruitment)
• It is motivational – employees are aware of a plan for future development.
• Ensure that the HR requirements are balanced
• It gives direction of HR activities i.e. it leads to other plans of space, equipment. finance
• It ensures that there is competitiveness therefore sustainability
• Ensures effective plan for career development and progression
• Controlling resources no overstaffing, double role
• It maximizes return on investment on human resources
• It fulfills the function of succession planning
• It ensures proper efficiency/effective utilization of resources in organizations
• Ensures that opportunities for human resources are not misused
• For economic development at the national level in that it generates employment
• Helps in growth and diversification of business
• Identifies gaps in existing manpower so that suitable training programes may be developed
 HRPLANNING PROCESS
• The process of planning may start at the:
• 1.Overall environmental analysis meaning the organization studies the external ( poiltical. Technology. Etc.
and internal environment ( leadership style, mission statement, culture)in which it exists
• It has to know much about the macro forces and see if it is going to be favorable to the organization e.g.
technology – where it is going to create jobs
• Will it require having new skills in organization, improved productivity and output, changes in population
and what are the implications of these to the organization?
• Will the organization require making new products or will we need to shrink production.
•  
• 2.Intermediate environment (at industry level):
• Includes nature of competition i.e. changes in competition, what are the plans e.g. are they diversified?
Suppliers and competitors, their nature, size, power they have
•  
•  
• 3.Micro environment (organizational level):
• It operates on organizational level
• It deals with the size, objectives and structure of the company, organization culture – way things are done
 LIMITATIONS OF HR PLANNING
 
• Limitations of HR planning:
• Difficulties in forecasting particularly in the environment without proper tools for
forecasting. Changes in the economy, technological, political, natural environment,
population, social, cultural
• The practicality of the plans might not be effected or be effective
• Detailed records are needed
• Expensive clerical staff are needed and organization don’t have the need of having them
• It is difficult to get highly qualified persons who can develop and implement plans
successively
•  lack of top management support
• Time and expensive exercise in data collection and forecasting
• Unbalanced focus; there is too much focus on quantitative aspect to endure the flow of
people in and out of organization such as exclusive focus outlooks the important quality
of hr aspect
GUIDELINES FOR MAKING HRP EFFCETIVE
 tailor made:-hr plans should be balanced with corporate plans of enterprise
 Appropriate time horizon: Period of hr plan should be appropriate to the needs and
circumstances of specific enterprise i.e the size and structure of e.p as well as
changing aspirations should be taken into consideration
 Adequate organization: Hr planning should be properly organized . A separate of all
section /committee may be constituted within Hr department to provide adequate
focus and coordinate planning effort at various levels
 Top-level management support: before hr planning process the support and
commitment of top management should be ensured
 Participation: To be successful hr planning requires active participation and
coordinated efforts on the part of operating executives
 Information system: Adequate database should be developed for hr to facilitate hr
planning
 Balanced focus: The quantity and quality of hr should be stressed in a balanced
manner
 Characteristics of hrp
 Its forward looking/ future oriented
 It’s a continuous process
 Its an integral part of corporate planning( plan under biggest plan)
 Its basic purpose is to make optimum utilization of organization
current and future hr
 It has both quantitative and qualitative aspect
 It can be either long term or short term
 It has a two phased process involving calculations about demand and
ss of hr so as to serve equilibrium between the two( balance
between dd and ss)
 It involves study of manpower environment which influences the
demand and ss of mp and its supply
 RECRUITMENT

 Defined as the process of attracting a large pool of qualified

individuals in the labor market, who can be available to
carry out organizations objectives with maximum efficiency
and effectiveness
 Recruitment is also reaching out and attracting a supply of
people from which to select qualified candidates for the job
vacancies.
 Recruitment is the process for searching for prospective
candidates and stimulating them to apply for job in the
organization.
 OBJECTIVES OF RECRUITMENT:

 Add new skills to the organization, knowledge, competencies,

new expertise, new attitudes, and fresh ideas
 Recruitment also aims at projecting a positive image of an
organization to those who come in contact with it Recruitment
also aims at adding new life to the organization
 Recruitment aims at ensuring that the organization runs its
operations effectively. It therefore has to generate a sufficiently
large pool of applicants from which to select the most suitable
 Recruitment affects other functions such as, selection,
retention, motivation. It directly impacts in employee
productivity and motivation. It also affects HRP process
•  
 RECRUITMENT PROCESS
 The recruitment process may have all or some of the following key
sections/steps;
1.Identification of need:
 Is there a need for a new employee and this need has to be justified
 Sometimes a vacancy can exist as a result of replacing staff who
resigns, dismissed, or who die while in office, or there are
promotions, transfers, expansion and growth of an organization,
restructuring of an organization
 The organization has therefore to verify that a vacancy exists.
Sometimes a vacancy can be imaginary
 Recruiting of new employee may be the most obvious tactic when
a vacancy exists
•  
•  
 RECRUITMENT PROCESS
2.Seeking authority to hire:
 Authority to hire must come from the chief executive or his
representative. This is called staff requisition i.e. authority to
hire and the relevant department must fill a form called staff
requisition which is taken to CEO and this scenario is
relevant in large organizations because staff requisition has
job position, why that particular person, number of
employees in that department (region/location of job) status
of the job, managerial, technician, clerical/support staff,
remuneration which include all other benefits, job grade and
the person’s specifications and job specifications meaning
they are already there in the organization
3. Determining sources of labor. The hr person can either fill
the vacancy internally or externally.
 SOURCES OF RECRUITMENT
a) Internal sources of recruitment:
 Internal means filling from within the organization. Organization
strives to make effective use of the skill inventory that they have
 They identify competences within the organization and jobs are
advertized internally using bulletin boards and e-mails, memos, etc.
the methods used to recruit internally are:
 Job transfers
 promotions
 Present employees-may be requested to recommend their friends or
relatives for employment
 Part time
• Also use retired employees
 Internal recruitment sources cont…
 Sub-contract the job (let the other employees do
it for you) the job must be transferable e.g.
production firms, architecture, HR, keeping
accounts in a small firm, computer management.
NB: that this aspect of sub-contracting is only
workable if the job is transferable
 Use employee lease system-use of people with
specialty skills for a given job by hour, day for a
fee
 Advantages of internal sources of
recruitment
 Reduces costs of hiring/recruiting in terms of time and finances ,
 Reduces costs of training. No time, money, needed to be spent on calling up persons for written, oral or
aptitude tests
 Reduces salary expenses on part-time jobs, contract jobs, temporal services, the payroll package is never the
same, they get piece rate (no benefits)
 Minimizes staff turnover like in transfers, promotion - stays in organization after being transferred and
promotion and boosts staff morale
 No need for initiations: the persons selected knows the organizational relationships hence no need of
briefings about authority and responsibility
 Retention of talents is achieved
 Promotes good industrial relations part with trade unions
 Leads to better use of highly paid employees especially those with specialty skills.
 Loyalty: present employee already knows the company well hence likely to be more loyal to the organization
 Security; provides security and continual employment
 Brings to the organization unique benefits such as ease in employees evaluation (evaluate people you know
quite well)
 More organizations utilize abilities in a better effective way
 Internal recruitment has the advantage of being reliable
 Weaknesses of internal sources of
recruitment
 It must be done in an impartial manner e.g transfers and promotions and if not
unsuitable persons will be promoted and may harm the organization in the long run
 Internal promotions and transfers create a feeling of disconnect and anger among
those who are not promoted
 It prevents the entry of young blood in the organization in that entry of young,
highly qualified and energetic persons is always profitable to every organization.
 ( dangers of inbreeding) In-breeding causes lack of new ideas, knowledge, and
enthusiasm, in-breeds bad habits and bad culture
 May not be possible for certain key positions if suitable persons are not available
within the organization
 Many internal changes are required to be made when promotions are given.eg who
is to replace the one promoted.
 Service records and confidential reports of all employees must be maintained for
internal promotions and transfers
 Weaknesses of internal
 Discourages inflow of new blood
 It may cause sometimes erosion of employee
morale particularly if these are unfair practices
in promotion, transfer, leasing, part-time
 Restricts choices of selection
• Subject to abuse by supervisors
• May frustrate a change process:- sometimes
capable persons may be left out
 b) EXTERNAL SOURCES OF RECRUITMENT

 Some jobs have to be ultimately filled from outside

Methods used to recruit will depend on :
1.Type of job to be filled
2.Type of industry
3.Economic conditions
4.Relative costs
external sources of recruitment /methods:
1.Referrals:
 Are recommended by present company employees. Are
typically used for new and unfamiliar positions which are
usually hard to fill. Some organizations offer ‘finders fee’ –
paid amount of money if you make a good referral
 EXTERNAL SOURCES OF RECRUITMENT
 The method should be used cautiously because it can be
used to discriminate people culturally, ethically, racially and
sometimes weaker employees may recommend people of
similar attitudes therefore defeating the purpose
recruitment. So, referrals can also include unions of
professional contacts
2.Use of education establishment:
 A good source of new graduates from schools, colleges and
universities. Employers visit colleges/schools to recruit the
best students
3. Private employment agencies: (They register names
of job seekers and pass them on to employers who
have vacancies for them,do like public employment
agencies below)
4.Public employment agencies: They register names of
job seekers and pass them on to employers who have
vacancies for them
5.Unsolicited applicants /enquiries: e.g. walk in,
callers:
 EXTERNAL SOURCES OF RECRUITMENT
6.Gate recruitment:
7.Use of previous employees:
8.Media advertising:
*9.Scouting method:
 Typically used to source recruits scientific, technical and managerial
personnel. Search teams are used to go out and work for certain
people. These people are in high old but low supply
10. Field trips: teams of experts are sent out to different places where
the kinds of personnel needed by it may be found. Publicity to the
date, venue and time of recruitment is given e.g police recruitment
10.Computer data basis method:
 It is quite automated. Organizations generate databases of people CVs
or resume and they maintain the data base. The database helps them to
when looking for new employees. Some databases can consist of an
alumni groups
 ADVANTAGES OF EXTERNAL SOURCES OF RECRUITMENT

 It enables the choice of personnel from among a large

number of applicants hence you weigh the plus and minus
points of all candidates and select the best.
 In a world of intense competition., an enterprise greatly
benefits from freshness of outlook and approach of
personnel chosen from outside . They begin on a clean slate,
without any inbuilt preferences, and prejudices which are
common by internals
 New blood brought in
 New ideas
 Respect for new comers
 Weaknesses of external sources of recruitment

 Costly and time consuming

 Too much importance to external source may lead to
dissatisfied internal staff
 Production is decreased as some staff leave offices to prepare /
attend to interviewees

Online recruitment:
i. Corporate websites
ii. Commercial job boards-cos pay to have their jobs posted on
the sites e.g brighter Monday, monster .co.uk fish for
jobs.com. consists of large databanks for jobs
iii. Agency sites: run by established recruitment agencies
 RECRUITMENT FUNDAMENTALS:

1.Attract a large pool of well qualified applicants

2.Recruit on a continuous basis
3.Recruitment should be quite creative, imaginative, and
innovative
4.Continuously evaluate recruitment e.g. how to deal with
ones that do not qualify, are we cautious to send a regret
letter
5.Consider the cost:
 FACTORS INFLUENCING RECRUITMENT

1.Size of organization:
-The larger the size, the more complex the recruitment process the
more the number of applicants.
2.Location of organization:
3.Labor market conditions:
-If there’s surplus of labor at recruiting time, any attempt at
recruiting attracts a huge number of applicants
4.Composition of the labor force:
-Number of skills outside and degree that people have complicates
recruitment. Many firms discriminate a lot because sometimes
people are overqualified
-Organizations also tend to recruit people who are similar to those
who already exist
  
 FACTORS INFLUENCING RECRUITMENT:

5.Competition or competitive forces:

-E.g. similar firms in the same industry will influence the way
a company recruits e.g. safaricom versus Celtel,
6.Legal issues: -Quite a number of HR issues are statutory
7.Economic trends:-Rate of economic growth in the country
8.Technological changes:
-Affects recruitment making it easier and effective e.g. e-
mails, computer aided selection. Can also take away jobs
and create new jobs
9.Ability to recruit:
-It is based on organization past recruitment effort
10.Level of seasonality of organization’s operations:
-Determines frequency of recruitment
 SELECTION:

 It’s a process by which an organization chooses from a list

of applicants persons or a person who best meets the
selection criteria for the position that has been advertised or
for the available position
 This process also considers the current environmental and
governmental conditions i.e. adhere to legislation,
technology, political and economic environment
 A lot of time, selection is meant to make organizations more
effective and more efficient by screening in the most
qualified persons to fill available job vacancies.
 SELECTION:
 At a basic level, all selection programmes attempt to
identify applicants who meet or exceed job specifications or
person specification (organization sometimes screen out
overqualified)
 Find out what is meant by:
 Job specification? Knowledge, skills, abilities required to
carry role
 Job description? Respon, duties
Nature of Selection:
 Selection is predictive in nature. It involves making choices
based on limited information, so prospective employers
predict employee’s ability, attitudes, people’s interests,
competences, and capacity to learn
 SELECTION:
 Selection is more of screening out than screening in and is
more easier to do the follow out
 Applicants also have to clear more hurdles. Selection is
hurdle hidden
 Selection is a matter of personal judgment prospective.
Employer chooses people on personal judgment even if it is
a criteria
 PURPOSES OF SELECTION:

1.To match applicants characteristics to the job requirements.

Job analysis plays a crucial role in the matching process.
2.To ensure the organization has a competent workforce
3.A tool used to meet demand for labour

Factors Influencing Selection:

1.Internal environment of the organization
- e.g. the larger the size the more complex the selection
procedure.
 FACTORS INFLUENCING SELECTION:

-Size of the company, Culture – equity, Resources

-Structure – small simple organizations sometimes are more
efficient and look for best skills. Complex structures make
selection complex
2.Nature of the labor market:
 If the supply of applicants is large, it will attract too many
applicants thereby increasing the degree and nature of
resources put in the selection
 When the supply of applicants is too low, it can make the
decision simpler but this issue can affect the overall
effectiveness of selection. When too few, reuse criteria for
selection.
 FACTORS INFLUENCING SELECTION:

3.Union requirements:
 Union can interfere openly or silently in way selection is
done, will demand to promote people within the
organization or advertise for the job
4.Government legislation e.g. equal opportunities, non-
discriminations affirmative action, issue of auditing
5.Time factor – amount of time available to make selection
decisions matters. Ample and adequate time, an
organization may use quite a number of selection methods
but if time is not on the organization side, then the
organization has to use faster means of selection
•  
 SELECTION PROCEDURE
 It’s typically a five step process starting with;
1.Initial screening interviews/ preliminary interviews. [prospective applications are given
the necessary inform about job nature necessary information is sought from them about
education, experience, skills. Salary expectations
2. application scrutiny
3. Written tests and psychological tests( intelligence tests, interest tests, achievement test,
analytical test, personality test) of candidates- to judge knowledge of candidate, his
intelligence, aptitude (natural ability to do something), capacity, interests, suitability.
4. Comprehensive interview – post application interview and not a preliminary interview
5. Background investigation- given to those who appear to offer potential as employees .
Contacts former employers
6. Medical examination followed by actual appointment
7 final decision- the highest score gets the job
8. Placement sucessful is placed or given job
9. Orientation_ introduction to organization. Aim is to Sell policies, procedures. Know
colleagues
.
 METHODS OF SELECTION

1.Application Forms:
 They are also called personal detail form often used to
obtain biographical data/inform e.g. education, age,
previous employment, any training
 These forms act as a useful preliminary to interviews and
other selection decisions
 The forms make sorting and short listing easier, also used to
verify data. Application forms are sometimes used as the
only tool for selection
 The HR manager should ensure the forms are typed, of
reasonable length and avoid illegal offensive and
unnecessary questions
 METHODS OF SELECTION
2.Self-Assessment:
 Applicants are provided with more information concerning the job
and the organization and are asked to do a self assessment of their
suitability within that particular job. Helps organization to screen
in/out job applicants
3.Testing:
 Tests are one of the major methods of uncovering qualifications
and talents that might go unnoticed in other methods of selection
 It is argued that tests give credibility to selection process because
they are perceived to be objective (criticized because people have
room and capacity for improvement)
 Tests are chosen on the basis that scores relate or correlate with
subsequent job performance
•  
 METHODS OF SELECTION
4.Interviews:
 It is defined as a controlled conversation with a purpose
 Usually, it has a high number of exchanges that take place
in a shorter period of time
 Interviews are usually purposeful and the conversation is
not like any ordinary conversation. It is the most preferred
method
Purpose of interviews
 To gather predictive information from the interviewee
 Provides candidate with detailed information
 Give candidates a fair hearing.
 Interviews….
Types of Interviews:
 Individual interview – one to one/face to face discussion
 Panel / board interviews-many interviewers
 Computer aided interview
 Stress interview- candidate put to considerable stress and strain e.g. drawing a candidate into a verbal duel. Display anger and strain, not
react to anything said by the interviewee
 Group interview_ candidates are interviewed simultaneously in a group
Discuss the following-
a. Shortfalls/criticisms of the interview as a method of selection
 Subjectivity-Biasness, dislike
 One permanent character of candidate may be allowed to dominate appraisal of whole personality
 Some managers believe they are good at character analysis

b. Errors in Interviewing:
 biasness,
 stereotyping.
 Making snap decisions( eg after seeing the person)
 Gathering negative and positive information to support first impression
 Gathering insufficient irrelevant information
 Contrast effect ( comparing one who has come with the one left)
 Hiring in ones image
How to eliminate above errors
 Gather sufficient inform
 Allow adequate time
 Have structured interviews
 Have more than one interviewer
 Use only trained people to interview
 METHODS OF SELECTION

5.Simulation/In-tray methods:
 The method requires one to act in a real situation e.g.
doctors operating a corpse, flying a dummy plane, replica of
a real situation, fire drills
 It’s a selection exercise, simulating what a manager or
employee may be involved in. e.g. he is given a limited
period of 30 minutes to go through an in tray of memo’s,
letters, reports, and any other documents
 The prospective candidate is supposed to respond to all
those memos and make appropriate decisions and
communicate
 INDUCTION/ORIENTATION
• Process of receiving and welcoming employees when they first join a company and
giving them the basic information they need to settle down quickly and happily and
start work
Aims:
 Smooth the preliminary stages when everything is likely to be strange and unfamiliar
to the starter
 Establish quickly a favorable attitude to the organization in the mind of new
employees son that they are more likely to stay
 Obtain effective output from the new employee in the shortest possible time
 Reduce the likelihood of employee leaving quickly- reduces cost and inconvenience
of early leavers
NB: its said that employees are far more likely to resign during the initial months after
joining the organization, hence first impressions are important( first four weeks of
employment)
 First contacts should be friendly
 HOW IT SHOULD BE DONE
• A) RECEPTION:
 Ensure that the new employee meets the receptionists/ hr
assistant/ supervisor and they know of their pending arrival and
what to do next,
 Set a reporting time which will avoid the new employee turning up
before the reception or office staff arrive
 Train reception staff the need for friendly and efficient helpfulness
towards the new starters
 Provide a guide to the location or new location immediately after
reporting
 Avoid keeping the new starter waiting. steady, unhurried and
Guided activity is important to first day nerves
• B) DOCUMENTATION:
• Issue some documents to employees including:
 Safety rules
 Safety literature
 Company rule book
 Employee handbook covers the following:
 brief description of organ
 Details of basic terms and conditions of employment-hrs, holidays, pension scheme, insurance,
payment arrangements
 Sickness and absence-notification f absence, leave of absence, certificates, pay
 Company rules
 Company procedures-disciplinary, capability, grievance
 Union and joint consultation arrangements
 Education and training facilitates
 Health and safety arrangements
 Medical and first aid facilities
 restaurant facilities
C) COMPANY INDUCTION –INITIAL BRIEFING
 For more personal touch, main points should be briefed to new employees
 After words they are taken to their places of work and introduced to their
manager or team leader for departmental induction
D) introduction to workplace
 Put new employee at ease
 Interest employee in the job and the organization
 Provide basic information about working arrangements
 Indicate the standards of performance and behavior expected from
employee
 Tell employee about training arrangements and how she can progress in
the company
• D) FORMAL INDUCTION COURSES:
 Provided to a group of employees ( new starters) in a
consistent and comprehensive way
 Delivers msg about organization, products, services,
mission, values
E) ON-JOB INDUCTION TRAINING
 Trained colleagues act as guides and mentors, coaches
from team leaders or trained departmental trainers .
 Supplement with special off-the job courses to develop
particular skills and knowledge
 MOTIVATION
• Complex of forces inspiring a person at work to willingly use his capacities for
the accomplishment of certain objectives
Types of motivation:
a) Intrinsic motivation:
 Arises from self generated factors that influence pples behaviour
 Not created by external incentives
 Eg;
 When one feels that their work is important
 Interesting and challenging work
 degree of Autonomy ( freedom to act)
 Opportunities to achieve and advance
 Scope to use and develop skills and abilities
 Job role or design
b) extrinsic motivation:
 Occurs when things are done for or to pple
 Includes:
 Rewards eg. Incentives
 Increased pay
 Praise or promotion
 Punishments such as disciplinary action.
Withholding pay or criticism
 Process of motivation
 Feeling of unsatisfied need which causes
tension
 Individual takes action to reduce tension
 Fulfillment of need. When need is satisfied,
tension is removed
 Birth of new need- new needs arise and
process begins again
 Importance of motivation
 High efficiency, goal accomplishment
 Better image in the employment market
 Facilitates change – overcomes resistance to
change
 Human relations- creates job satisfaction
which results in cordial relations btwn
employer and employee
 Strategies to motivate
 Encourage personal development
 Formal trainings
 Develop a culture that values and rewards employees
 Indentify potential leaders through performance management and assessment centers
 Guidance and training to develop leadership qualities
 Job enrichment- variety, decision making responsibility, much control in carrying out work. Job rotation,
job transfer to avoid monotony
 Fair treatment of employees- effective communication, counseling
 Study cases of dissatisfaction and satisfy them
 Attractive environment to work in
 Reward systems-fair, just equitable , both financial and non financial
 Feedback
 Effective grievance procedures- quickly act on grievances
 Participation
 Delegate authority
 Sound promotion policy for fairness and EO
 Attractive wages and other monetary incentives
 Motivation theories
Needs/ content theory:
I) Maslow 1954- a hierarchy of five need exist,
 physiological(food, water,, sleep,),
 safety, (security of body, employment, family and health),
 social, ( love, belongingness, friendship, family intimacy, )
 esteem, ( respect from others, respect for self. To avoid
inferiority complex),
 self fulfillment( fulfillment of ones potential which differs
between individuals) . Needs at a higher level only
emerge when lower ones are satisfied
) ERG THEORY BY ALDEFER 1972- three fundamental
needs existence, relatedness and growth
Existence: desire for physiological and material well
being
Related needs: desire to satisfy interpersonal
relationships-social needs in Maslows model
Growth needs- desire for continued psychological
growth and development- in Maslows I is related to
esteem e.g promotions, respects and self
actualizations
• Iii) Managerial needs theory by McClellad
1973- managers have three fundamental needs;
 Achievement: the drive to excel
 Affiliation: desire to be friendly, close
interpersonal relationships and conflict
avoidance,
 Power: desire to cause others behave in a way
that they would not have behaved otherwise
PROCESS COGNITIVE THEORY:
i) Expectancy theory by Vroom 1964, Porter and Lawler 1968-
motivation depends on likelihood that rewards will follow
ii) Goal theory by Latham and Locke 1979- motivation will
improve if people have demanding but agreed goals and
receive feedback
iii) equity theory: by Adams 1965- people are better motivated if
treated equally
iv) Social learning theory: by Bandura: emphasizes the importance
of internal psychological factors especially expectancies about
the value, of goals, and individual ability to reach them
TWO FACTOR MODEL THEORY:
i) Related to needs theory by Herzberg at al 1957_ two
groups of factors affect job satisfaction ie intrinsic and
extrinsic motivators , reward systems should provide
for both financial and non financial rewards.
Theory x and y by Mcgregor 1960-
ii) Theory X says that p’ple are coerced into performing
while
iii) Y views that people will exercise self directing in the
service of objectives to which they are committed
 DISCIPLINE
• Discipline : conforming to rules and
regulations framed by organization;
orderliness
• It’s the action taken by management against
an individual or group who have failed to
follow the established rules and regulations
within the organization
 OBJECTIVES OF DISCIPLINE
• To frame rules ,regulations so that organ goals
will be achieved
• To develop spirit of tolerance and sense of
direction among employees
• To create atmosphere of respect of human
personality and human relations
• To increase work efficiency and morale of
employee
• To develop feeling of cooperation
 CAUSES OF INDISCIPLINE
 Placing people on wrong jobs hence not taking them
seriously and violating rules.
 Lack of clear cut upward communication to convey feelings,
thoughts actions reactions
 Favoritism from executives distrustful, incompetent leaders
 Taking decisions in haste and against employees, indiscipline
results
 Absence of good supervisors who can patiently listen to
grievances of subordinates
 Poor working conditions
 CAUSES OF INDISCIPLINE…
 Congenital tendencies by some employees to flout rules and
regulations
 Human errors of judgments on the part of management
may produce indiscipline
 Psychological and sociological reasons e.g.
misunderstanding, rivalry, distrust among employees and
supervisors.
 When rules and regulations not clearly and properly drawn
 Divide and rule policy which causes misunderstanding
 Discrimination on caste, colour, creed, sex, language
 APPROACHES TO DISCIPLINE
• A) Positive /constructive
• B) Negative/Administrative
• A)POSITIVE DISCIPLINE
 This fosters cooperation and a high level of
morale among employees so that written and
unwritten rules and regulations are obeyed
willingly.
 HOW TO ACHIEVE CONSTRUCTIVE
DISCIPLINE
• Instructions should be explained in a way that
they are understood, if in doubt explain again
• Treat all employees fairly without prejudice
• Avoid bullying, shouting, becoming impatient
• Encourage workers to ask questions
• Supervisors and managers should make efforts
to study personalities in groups
ALTERNATIVE APPROACHES TO DISCIPLINE

• CRITICISM
• Can be sued constructively by management so long as
you do not antagonize others by attacking their
personal attributes, criticizing character traits, (the
work produced is criticized not workman )
• Do not blame workers without improving the situation
• Do not criticize workers in the presence of work mates
• ALTERNATIVE APPROACHE
B) ADMINISTRATIVE PUNISHMENT
• WAYS:
 Demotion
 Transfer
 Dismissal
 The approach is effective if progressive
discipline is followed i.e. use of oral warning,
written warning, disciplinary layoffs, discharge
 CAUSES OF DICIPLINARY ACTION
 Lateness
 Absence without good cause
 Absence from assigned place of work
 Smoking in prohibited areas
 Improper use of employer’s property, machines
 Fighting at lace of work
 Stealing
 Indecent or immoral cnduct
 Incompetence
 Endangering safety of others
 And organization
 misappropriation of funds
 HOW TO ENFORCE DISCIPLINE
• A) IMMEDIACY-As soon as it occurs , act
immediately( hot/stove rule).
 immediate, consistent, impersonal
 Should be directed against the action not person
b) ADVANCE WARNING
 Employees should know in advance what is
expected of them
 Rules and regulations –clearly, orally, written
• C) CONSISTENCY
 Supervisors-be consistent in application of discipline
 Once it occurs, appropriate disciplinary action should be
taken
 Avoid favoritism
D) IMPERSONALITY
 Penalties should be related to the act not personality
involved
 treat the victim as if nothing happened after disciplinary
action
• E) DOCUMENTATION
 Keep records of what happened, decision,
response made to situation
 For justification purposes if asked in future
 DISCIPLINARY PROCEDURES
 Be formal and written
 Indicate to whom they apply and appropriate employees should be
provided with copies
 Specify what disciplinary action to be taken
 and level of management has the authority to take such an action
 Ensure employees are notified of complaints against them
 Give opportunity to state their case and be represented by union
reps
 Ensure no disciplinary action taken without full investigation
 Provide employees with the right of appeal against any disciplinary
action
 grievance
• This is a concern, complaint raised with
management
 Grievances procedure and handling
 Be formal and written
 Indicate to whom they apply and appropriate employees should be
provided with copies
 Specify what disciplinary action to be taken
 and level of management has the authority to take such an action
 Ensure employees are notified of complaints against them
 Give opportunity to state their case and be represented by union
reps
 Ensure no disciplinary action taken without full investigation
 Provide employees with the right of appeal against any disciplinary
action
 Causes of grievances
 Promotions
 Amenities
 Continuity of services
 Compensation
 Disciplinary action
 Increments
 Disagreements over Wages , fringe benefits
 Safety applications
 Suppressions
 Transfers
 Victimizations
 Clashes in personlities
 Hostile management communication breakdown
 External faatoers –technology, economic conditions

 Signs of potential grievances
 Decreased interest in work
 Negative statements about job, colleagues,
supervisors
 Unwillingness to cooperate
 Increased absenteeism
 Poor job performance
 Being away from assigned place of work with no
apparent reason
 Slowing down on the job
 MINIMIZING GRIEVANCES
 Treat all workers with dignity as individuals
 Recognize good performers
 See issues from workers point of view
 Identify and Eliminate sources of irritation to workers
 Give clear orders
 And explain direction
 Train workers to perform their jobs
 Be objective , fair and consistent
 Know the labour contract and apply it where one exists
 STEPS IN GRIEVANCE HANDLING
 Supervisor, worker discusses grievances ( if not resolved)
 Put in writing and its reviewed by supervisors, boss and
chief steward
 Grievance is reviewed by hr department and union
grievance committee
 Grievance is reviewed by top management and union
officials
 Grievance heard by arbitrator
 Industrial court decisions
 PERFOMANCE MANAGEMENT
• This is a cyclical process which is undertaken in order to determine
whether the way the organization’s activities are being accomplished
will lead to the achievement of the desired strategic organizational
goals and objectives.
• Systematic process for improving organizational performance by developing performance of individuals and
teams

• Importance of Performance management

• Provides clear guidelines and direction
• Improves employee and management relationships
• Improves communication within the organization
• Helps link performance to rewards
• Provides standards for evaluating performance
• Induces the atmosphere of trust
 Performance management cycle
Involves the following:
• A) performance and development agreements
 agree on goals, role, tasks, personal
development e.g. training, self managed learning.
Coaching, mentoring, job enrichment
B) managing performance throughout the year –
continuous process, all mangers should carry it,
top management support,
c) Reviewing performance e.g. once or twice a year
 Characteristics of p.m
a) It is a planned process which consists of ;
 Agreements of goals. Roles,
 Measurements of outcomes
 Feedback
 Positive reinforcement- e.g. proper tools, rewards encouragement, development
opportunities, training
 Dialogue about performance. Joint and continuing review of achievement
b) Not just a top-down process in which managers tell subordinates what to do,
should be done for people in partnership with them
c) Continuous and flexible process involving managers and employees as partners
d) Focuses on future performance planning and improvement and personal
development , its continuous process where performance improves over time
e) Emphasize is on development
 Essentials for successful p.m

• Relevant and clear standards, targets eg 100,000 units sold by end

of year
• Clear goals and objectives
• Top management commitment
• Employee participation
• Free from contamination of factors outside the employees’ control
• Reliable and objective measurement tools and techniques( Read
on methods/ techniques )
• Non-discriminative
• Acceptable by managers and employees
 PERFOMANCE APPRAISAL
• A) Performance appraisal is a personnel management function which is done in order to determine whether employees are
accomplishing their tasks more effectively.
• B) Performance appraisal; is where the individual performance is formally documented and feedback delivered, and this deals
with;
 Measuring performance
 Determining the amount of value added
 Allocating results of evaluation to HR systems
 Reviewing new business strategy, and departmental and employee goals

The reasons for performance problems;

• Personal problems such as alcoholism, divorce and depression
• Job no longer interesting or challenging
• Lack of transparency
• Fear of failure
• Lack of desire to contribute more energy
• Downturn in the economy
• Failure to use knowledge in the job
• Poor time management
• Uncertainty of what to do to succeed
• Poor management
• Job insecurity
 PERFOMANCE APPRAISAL CONT….
• Performance Appraisal Activities
• Identification of performance dimensions
• Fair and accurate judgment
• Measurement of performance and rating as good or bad
• Recording the performance appraisal process outcome
• Development and future improvement of the employee

• objectives of performance appraisal

• Administrative purposes.
• Development purposes.
• Organization purposes.
 Objectives of P.A
• Aids HR planning and assessment of skills inventory
• Improves job satisfaction
• Provides basis for dismissal, transfers and retrenchment
• Tests effectiveness of recruitment, selection and training
• Provides job security
• Promotes communication
• Prevents errors
• Identifies individual employee strengths and weaknesses
• Assesses employees’ applicability to career development
• Identifies personal problems which may affect performance
• Achieve ultimate organisational success through the realisation or organisational goals and
objectives effectively 
• To maintain individual and group development by informing employee of his performance
standard
• To determine escalation in wages through increaments and incentive payments and to provide
reliable index for promotions and administer transfers
 Managing poor performers
 Identify the problem
 Assess and analyze the problem-how serious, how long the problem, wide
the gap. organize meting with employee to discuss and the employee need to
know about this in advance in order to prepare,
 Meet with employee to discuss the problem-private, comfortable
environment, non threatening away from distractions. open discussion
 Jointly devise a solution-explore ideas and ask open questions, emphasize
common grounds, offer assistance e.g. further training, mentoring, flexible
work practices, redefine roles, expectations
 Monitor performance-continue giving feedback both positive and negative .
Meet for reviews. More serious action need be taken if no improvement eg
further counseling, issue formal warnings,
 Terminate employment-if no improvement. Give them reasons for dismissal
and an opportunity to respond to those reasons
 COMPENSATION
• Compensation Management( more tangible and
monetary( American)/Reward MANAGEMNT
• DefinThis is the process of determining how employees

must be rewarded for the tasks done. It is related to

performance management, in that if performance is
satisfactory, employees expect to be rewarded and if
not done so it can lead to dissatisfactions, low morale
and commitment.
• Reward management/ Compensation deals with design, implementation &
maintenance of reward system that aims at meeting the needs of both the orgn &
its stakeholders.
OBJECTIVES OF COMPENSATION
– Attracting quality and skilled staff
– Retaining well qualified and skilled staff
– Promoting better qualified staff
– Ensuring consistency and equity
– Emphasizing performance
– Rewarding good performance and motivating staff
– Encouraging workers to be productive
– Encouraging initiative, creativity and innovation
OBJECTIVES OF COMPENSATION
– Encouraging workers to move up the
organizational structure
– Complying with legislations
– Maintaining cost effectiveness
– Improving efficiency and effectiveness
– Improving employee retention
– Encouraging people centered management
approach
– Adapting to change
 OBJECTIVES OF COMPENSATION
• Reward people for the value they create
• Convey right message of what is important in
terms of behavior & outcomes
• Develop performance culture
• Maintain & retain high quality people
• Develop positive psychological contract
• Achieve equity & equal pay for work of equal value
• Manage pay cost & operate more flexibly
 REWARD STRATEGIES/ METHODS
PRACTICAL REWARD STRATEGIES

(i) Individual performance-oriented pay/Indiv. Performance- related pay/new pay

-tailor pay what the individuals really contribute

(ii) Competence-related pay-people receive financial rewards in the shape of increases to their base pay by
reference to the level of competence they demonstrate in carrying out their roles
It is a method of paying people for the ability to perform now and in the future
(iii) Contribution-related pay

-a process of making pay decisions that are based on assessment of both the outcomes of the work carried out
by individuals and the inputs in terms of levels of competence and competence that have influenced these
outcomes

(iv) Skill-based pay/knowledge-based pay

-rewards are related to the employees ability to apply a wider range or a higher level of skills to different jobs
or tasks
GUIDING PRINCIPLES FOR REWARD
Maintain competitive rates of pay
Recognize the values of everyone who is making an effective
contribution not just exceptional performers
Reward people according to their contribution
Allow reasonable degree of flexibility in the operation of
reward processes and in the choice of benefits by employees.
Develop reward policies and practices which support the
achievement of business goals
Provide rewards which attract retain, and motivate staff and
help develop performance culture
 FACTORS INFLUENCING COMPENSATION
• External relativity
• Internal relativity
• Personal or team value
• Legislation and policies
• Collective bargaining agreement
• Business performance & affordability of orgn to pay
• Cost of living
• The economy
• Labour supply and demand
• Unions
• Organizational strategy-methods
• Job related determinants; skills, competencies, working conditions, pressure, degree of
effort and complexity of tasks performed
• Individual determinants; performance and experience levels, length of service, potential
for promotion, personal preferences and needs.
 EMPLOYEE BENEFITS
These are elements of remuneration given in addition to the
various forms of cash pay.
 Also Include items that are not strictly remuneration such as
annual holidays

OBJECTIVES :
 Provide competitive total remuneration package that both
attracts and retains high quality employees
 Provide for the personal needs of employees
 Increase commitment of employees to organization
 Provide for some people a tax efficient method remuneration
 TYPES OF BENEFITS
1.Pension schemes : provide income to employees when they retire ,
surviving dependants deferred benefits to employees who leave .
2.Personal security / Health care benefits
 in regard to illness, accident, or life insurance
 Pay for basic medical services with no direct fee to patients, and their
families
 standard ward hospital accommodation
o Drugs and medication administered in hospital
o Laboratory and diagnostic procedure
o Hospital facilities e.g. operating rooms
o SERVICES NOT COVERED UNDER MEDICAL SCHEMES
o i) private duty nursing ii) cosmetic surgery Services paid:
3.Workers compensation
 Provides income and medical benefit to victims of
work related accidents or illness and or other
dependants regardless of fault
 The law imposes compulsory collective liability for
workplace accidents and work related illnesses
 For an injury to be covered by workers
compensation, one must only prove that it arose
while employer was on job
4. financial assistance:
 loans, house purchase schemes, relocation assistance, discount on
company goods and services .
5. personal needs
 Holidays
 Leaves
 Child care
 Career breaks
 Retirement counseling
 Financial counseling
 Personal counseling in times of crisis
 Fitness and recreational facilities-gyms
 Incentives
• Incentives are extra pay provided for extra
performance in addition to regular pay.
• They are managerial devices aimed at
increasing productivity of employees
• Consists of both monetary and non monetary
elements
• Monetary; e.g. bonuses
 NON-MONETAR Y INCENTIVES
• Status
• Promotion
• Responsibility
• Recognition of work
• Job security
• Fringe benefits-paid vacation, pension, health,
insurance plans, low cost meals low rent
housing
 TRAINING AND DEVELOPMENT
• Training is short term activities which are aimed at providing individuals with specific knowledge, skills or abilities
that can be applied immediately towards the improvement of their work performances.
• Development refers to the process whereby managers obtain the necessary experience, skills and attitudes to
become or remain successful leaders in their organizations.

• IMPORTANCE OF TRAINING
– Encourages a culture of learning
– Facilitates the achievement of long terms goals of developing knowledge, skills and behaviours of employees
– Facilitates the development of human capital
– Facilitates the adoption of new technology
– Improves decision making and problem solving
– Leads to employee recognition and growth
– Helps with stress handling
– Increases job satisfactions
– Improves knowledge, communication skills and attitudes
– Leads to improving better service and bolstered competitive advantage
– Leads to improving morale of the employees
– Better corporate image
– Helps keep costs down
– Enables the organization to adjust to changes
•  
 REASONS FOR TRAINING
• Reasons for training

• What kind of signals can warn manager that employee training may be necessary?
Inadequate job performance
This is likely to occur in the early months on the new job. When a manager sees evidence of
inadequate job performance, assuming that the individual is making a satisfactory effort,
attention should be given to raising the worker’s skill level.
Drop in productivity
When the manager is confronted with a drop in productivity, it may suggest that skills need
to be “fine turned”.
High reject rate or larger that usual scrap page may indicate a need for employee training.
Rise in the number of accidents reported also suggests some type of retraining is necessary.
Changes imposed on the worker as a result of a job redesign or a technological
breakthrough.
• types of job changes require a training effort that is in preparation for planned change
 REASONS FOR TRAINING
 A change in working methods.
 A change in product, which may necessitate the training not
only in production methods but also in the marketing
functions of the company.
 Labor shortage necessitating the upgrading of some
employees.
 A desire to reduce the amount of work and to improve quality.
 Promotion or transfer of individual employees.
• High absenteeism.
 
• Types of trainings
• Training methods can be classified as either:
• On-the-job apprenticeship.-Instructions are given at the workplace by the
hr managers / department training officer. Its done by watching and
working closely with existing experienced members
• e.g orientation programs, apprenticeship trainings, delegation, promotion
and transfers, refresher / retraining, job rotation, assistant to position,
committee or bard membership
• Off-the-job training- its any instructions given away from the place of
work at specialized training centers by use of any of these methods :
lectures, films, videos, role-playing, case studies, e-training, seminar or
conferences
 Training needs assessment
• The following three steps may be adopted to
identify training needs of employees.
• A) Organizational analysis: includes identifying
areas where training of employees is called
• Look at objectives, organization structure, existing
personnel and future plans
• This will highlight what activities will b taken by the
enterprise and whether employees with existing
skills will be able to perform them effectively
• B)TASK ANLYSIS:
• Calls for a detailed examination of every job, activities to be
done to accomplish the jobs
• Working condition under which jobs are being done . This will be
able to indicate the type of employee who is able to do the task
• C) worker analysis:
• Analyze each employee. Abilities, skills and kind of raining and
development facilities required t enable him perform work well.
• How: observe as he works, interview them
• use supervisors and peers to pass / give record relating to their
performance
 Evaluation of training
• Need to compare post training results . Objectives expected
by managers trainers and trainees because training is time
consuming and costly, hence evaluation is important.
• Levels of evaluation:
• A) reaction: interview the trainers and see their reaction.
• B) learning: through testing trainees
• C) behavior: evaluate effort of training on their job
performance
• D) results: how much the organization has achieved its
objectives
 Evaluation design
• A) Post measure: determine after training if
individuals can perform the way management
wants them perform
• B) pre-post measure: here performance is
measured before and after training to get difference
• C) pre-post measure with control groups- compare
the work of those who have undergone training wit
those who have not gone consider also their
performance before training
 CAREER MANAGEMENT
• Career Management
• Carreer is the sequence of work related positions a person occupies through out life
• This is the process through which the employee or the organization analyses the
employee’s current situation in terms of skills, knowledge, competence and job
experience and devises strategies or channels through which the employee in the
course of employment can achieve his or her personal goals of progressing from
lower to the higher organizational hierarchy.
• It usually involves processes encompassing;
– Working with individuals in the organization in order to develop their career plan and career
management strategy.
– Developing or reviewing the organization’s plan of succession and corresponding career
development and career management strategy.
– Assisting management and HR to identify individuals within the organization and to integrate
them into the career development and career management strategy.
– Matching individual career development and organizational HRM strategy.
 
 Career stages
1) exploration stage:
• from birth into early 20’sOne develops values, attitudes and beliefs that remain important through out the life.
• One deals with parents and other authority figures
• Early exposure to work
• Acquires foundation on which later skills and work values are built.
• Separation from parents and family and early friends
• Takes steps into independence
2) NOVICE STAGE:
• From age 17-33
• Persons work role changes and major role tasks
• Shift from family to her own world
• Immense in career and organization but as a beginner
• Learns new skills, competence and attitudes
• Crystallizes aspirations and dreams, begin formatting an occupation
• Mentor relationships
• Marriage , family or love relationships
• Questioning whether commitments made earlier are right ones
Old choice are affirmed, new choices made
C)Mid- career/ midlife ; between age 35-45
• Questioning what one has done with life,
children, and career
• Status at work is well defined
• One still advancing stabilized or in period of
decline
• Judgement is made about relationships with
spouses, children, other elements of life
D) career stage:
• Age 45 until retirement
 one acts as a coach coz of experience,
contribution.
 One either in general management if career
has advanced or middle upper level
managerial level if career path has slowed.
 REASONS FOR CAREER MANAGEMENT
– Enhances retention of very skillful employees
– Enables employees to align their individual goals with the organizational goals
– Leads to improving efficiency, effectiveness, productivity and competitive
advantage.
– Globalization has led to increasing competition hence career mngt is
important to fit in
– New generations of employees require greater control over their career paths
– Constant changes in technology and customers’ demands.
Career Planning
• Refers to the process by which the individual employee analyses his
work situation, specifies his career goals and plans various means to
achieve these goals.
 ROLE OF EMPLOYEE AND MANAGER IN
CAREER MANAGEMENT
• EMPLOYER/ MANAGER ROLE
 Encouraging
 Supporting
 coaching
 Removing obstacles
 Providing resources for dvlpt
 Meet with them to discuss their plan
 Provide feedback on their goals
 Provide suggestions for dvlpt activities
 Monitor their progress quarterly
 Revise plans

Employee’s role
 Initiate process
 Watch out for opportunities
 Find situation that will help their personal development
 Approach their manager to request for career conversation
 Request feedback on their skills and performance
 Complete a self assessment of their strengths , development, needs, career aspirations . preferences
 TRADE UNIONS
 Association formed to protect workers interests collectively
TYPES OF T.U
 COMPANY UNIONS –Unions representing interest of one firm
 General Union- represent all workers generally across a range of
industries regardless of crafts. all workers are treated equally
 Craft unions-consist of skilled workers who pursue same craft
e.g. carpenters, masons
 Industrial unions- for particular industry irrespective of the
craft, trade, occupational, skill or grade of workers.eg.
KUDHEIA;( Kenya union of domestic hotels, educational
institutions, hospitals and allied workers)
 AIMS OF TRADE UNIONS
Aims of T.UNIONS
 Protect interest of workers / welfare
 Wages and salaries bargain
 Working conditions such as lighting, health,
rest rooms, safety equipments, drinking water,
refreshments, minimum pay, working hrs.
 Discipline-intervene in penal transfers,
suspensions, dismissals, victimized workers
 AIMS OF T.U
• Struggle for equal pay and decent benefits
• Tackling racism or working for equal access to learning and skills
• Unfair treatment and dismissals
• Universal public health care, decent pensions, paid time off the job
• Accessible and affordable education
• Appreciation of culture diversity
• Reasonable accommodation of people with disability
• Work life balance-negotiate and promote working arrangements that
facilitate work-life balance on behalf of members and staff
• Equality training opportunities
• Working environment free of harassment
• Recruitment and selection of candidates with and without disabilities to
compete equally for jobs
 AIMS OF T.U
 Welfare- notify management of difficult of working
in hospitals, schools, colleges,
 Employee/employer relations through negotiations
 Participate in Negotiating machinery –CB
 Safeguard organizational health and interest of
industry-help reduce rate of absenteeism, labor
turnover, advocate employment security hence
improve quality of work life and productivity
discipline
 BARGAINING IMPASSES
• This is how trade unions exercise their economic power in different ways to
force management to listen to their demands
 Strikes:
• Occurs when a group of workers refuse to work. Union officials issue a
strike order if there is an impasse in negotiations or if management violates
labour contracts
• Pickets: occurs when strike is in progress, union members stand outside
the organization’s premises to draw attention of other workers and the
general public
• They stop their colleagues from entering the organization
 Lock outs:
• occurs when an employer refuses to allow workers enter working premises
• Are illegal in Kenya
 BARGAINING IMPASSES
 Boycotts
• Similar to pickets but involves workers and general public
• There are demonstrations with placards and distribution of literature
 Gherao: in Hindi it means to surround, a group f workers prohibit members of
management from leaving industrial establishment premises by blocking exit gates.
 Sit down/ pen down/tool down: workers do not absent from places of work but
refuse to work and refuse to leave
 Sympathetic strike: workers in one industry go on strike in sympathy with workers of
another unit/industry. Who are already on strike . They express their sympathy
 Economic strike: laborers stop their work to enforce their economic demands e.g..
wages, bonuses .they ask for increase of wages, allowances,
 General strike: strike by all members of all or most of the unions in a region or an
industry .all workers in a particular region of industry to force demands common to
all workers
 COLLECTIVE BARGAIANING
This is the process by which employers and
representatives of employees attempt to arrive at an
agreement concerning employment relationships.
 The process of negotiation between employer and
representatives of employees aimed at reaching
agreements that regulate working conditions.
It is a method useful for avoiding or for solving
industrial disputes peacefully and also through direct
negotiation as regards workers demands , disputes
and other outstanding issues
 ISSUES DISCUSSED IN C.B
 Grievances mechanisms
 wage scales
 Working hours
 Overtime
 Rights to participate in company affairs
 Training
 Health and safety
 STAGES OF C.B
1).PREPARATION STAGE
 Both teams( reps ) prepare
 Should be knowledgeable and skilled for negotiations
 Both examine their situation
 Determine any reason to negotiate at all

2. DISCUSSION STAGE
 Parties agree ground rules to guide negotiations
 They set environment of mutual trust and understanding
• 3.PROPOSE STAGE/BRAINSTORMING STAGE
 Initial opening statements possible options to
resolve conflicts
 Brain-storming stage
 Opinions
4. BARGAINNG STAGE
 What if
 Proposals set
 drafting agreements
• 5. SETTLEMENT STAGE:
 Consensual agreements
 Both parties agree to a common decision
 Shared vision
 Strategic planning
 Negotiated change
 IMPORTANCE OF C.B
1. Its an effective method for establishing cordial
relations between lab our and management
2. It minimizes the scope of friction
3. leads to prosperity of industrial undertaking
and continued welfare of workers
4. Solves outstanding issues in peaceful and
friendly manner s an alternative to strikes
5.Creates industrial peace and maintains continuity in
production activities
6.Facilitates growth of strong and stable democratic trade
unionism in the country
7.Offers benefits to employees as regards wages, working
conditions, allowances, bonus payments , welfare facilities
8.Provides lasting solution to the complex problems of
industrial relations by solving disputes on a long term basis
9.Ensures continuous production activities at the unit level
hence profit to management
10. Promotes job security hence reducing cost of
labour turnover to management
11.Opens up channels of communication between
workers and management
12.Increased workers participation in decision
making which is beneficial to management
14. Checks discrimination and exploitation of workers
15.Regulates conditions of employment to those
directly concerned e.g. society, families
 REQUISITE FOR SUCCESSFUL CB
 Existence of strong trade union
 Existence of enlightened sympathetic and progressive managements with
genuine desire to negotiate with unions and respect to terms and conditions of
agreements
 Constructive approach on the part of reps of employer and employee( spirit of
give and take)
 Genuine desire o both parties to respect agreements made ( mutual trust and
confidence)
 Suitable legal frameworks to determine appropriate bargaining agency and fix
responsibility for enforcement of C.A
 CBA’S must be complete, clear and comprehensive to cover all issues likely to
create disputes in the near future
 Govt and society must offer moral support to such agreements by providing
necessary assistance and guidance during negotiations eg as mediators.
EMPLOYEE/INDUSTRIAL RELATIONS
 Employee relations are concerned with
managing and maintaining the employment
relationship
 They consist of approaches and methods
adopted by employers to deal with employees
either collectively through their trade unions
 For smooth functioning of an enterprise,
harmonious relationship between employees
and employer is absolutely essential
• It also encompasses industrial relations
which are about relationships between
managements and trade unions involving
collective agreements, collective bargaining,
disputes resolutions, dealing with issues
concerning employment relationships and
working environment.
ISSUES COVERED IN INDUSTRIAL RELATIONS
Handling the pay –work bargain
Dealing with employment practices-recruitment and selection,
Terms and conditions of employment-rules governing wages, leave,
rest, health n safety, children n women in employment,
termination of employment( conditions)
Issues arising from employment
Providing employees with a voice-empowering employees directly
and indirectly; participation( decision making) and involvement in
issues that affect them
 Communicating with employees-individual face to face, team
briefing, notice boards, speak up programmes, intranet, magazines,
newsletters, bulletins
 SIGNIFICANCE OF GOOD EMPLOYEE
/INDUSTRIAL RELATIONS
 Helps in economic progress of an economy
 Helps establishing and maintaining true industrial democracy necessary for
establishment of a socialist society
 Results in smooth collective bargaining on the part of both labour and management
 Helps the government frame and implement various laws pertaining to labour ,
forbidding unfair practices
 Results in less number of disputes and grievances
 Results in orderliness, effectiveness and efficiency of economy
 Safeguard interests of labour and management through securing high level of mutual
understanding and good will
 Avoid industrial conflict/ strife
 Raise productivity through reducing absenteeism, labour turnover
 Establish and nurse growth of industrial democracy
 Eliminate possible strikes and lockouts
BENEFITS OF GOOD INDUSTRIAL RELATIONS

 Regular and continuous production-no

disturbances
 Industrial peace- disputes are avoided hence
industrial development
 Smooth and orderly working of an industrial unit-
quality of production improves, no wastages
 Benefits employees- higher wages, high rates of
bonuses employer accepts reasonable demands
of workers
CAUSES OF POOR INDUSTRIAL RELATIONS

 Uninteresting nature of work-lack of job

satisfaction; boring, monotonous.
 Political nature of trade union-support from
political parties hence politicizing union activities
 Low level of wages-inequity
 Occupational instability-job insecurity, workers
tend to resist change
 Poor climate
 INDUSTRIAL DISPUTES
• Conflicts between management and labour which may result in strikes and lockouts.
• Causes of industrial disputes:
 Matters relating to employment, work wages. Hours of work. Rights and obligations
of employees and employers, privileges, terms, conditions of employment, CBA
settlements and awards. Dismissal , non employment of an employee
 Disputes on education of workers coz they know their right and privileges e.g when
injustice done on them
 Failure of T.U to safeguard interest of workers
 Managements unwillingness to dialogue
 Absence of suitable grievance redress procedure
 Unwilling by management to provide employee benefits and services
 Inadequate govt machinery to settle industrial disputes
 T. unions affiliations to political parties which engineer strikes hence making the
unions a scape goats hence resulting in conflicts and disputes
 Prevention of disputes
• Pay fair wages and allowances
• Fair bonus payments
• Better working conditions
• Proper regulation of hours of work- leaves, paid holidays,
• Collective bargaining agreements
• Employee participation in management
• Introduction of welfare measures
• Preparation of code of conduct
• Improvement of employee morale and motivation
• Introduce effective internal communication network
• Sound grievance procedure

•
 Kenya industrial courts
• Established in pursuant of article 162(2) of the
constitution of Kenya 2010 for the purpose of
settling employment and industrial relations
disputes and furtherance securing and
maintenance of good employment and labour
relations in Kenya .
 Objectives of the court
Objectives of the court :
• To give judgments in trade disputes between employers and
employees
• Uphold social justice
• To act in accordance with equity, good conscience and substantial
merits of the case
• Create harmonious industrial environment through the process of
arbitration and decisions of the court
• Handle cases like non payment of employees dues, dismissal of
employees e.tc
• E.g. if employee is dismissed without any lawful reason the
industrial court may order employer to reinstate him
 Powers of industrial court in determining
disputes
• To hear and determine all disputes refereed to it in accordance to the
constitution and provisions of industrial court act or any other written
law
• Disputes relating to or arising out of employment between employer and
employee
• Disputes between an employer’s organization and trade union’s
organization
• Disputes between trade unions
• Disputes between trade union and a member thereof
• Disputes concerning the registration and election of trade union officials
• Dispute concerning relating to the registration and enforcement of
collective agreements
 APELLATE JURISDICTION
• THE Court shall have appellate jurisdiction to
hear and determine appeals from the
following:
• A) decisions of registrar of trade unions
• B )Any other court , local tribunal or
commission and prescribed under any written
law
 HEALTH AND SAFETY
• Communicating and consulting on matters of health & safety are
vital elements in organizing for health and safety of workers.
• It helps promote a positive health and safety culture and secure
the implementation and continued development of health and
safety policies.
• Arrangements should be in place to either receive or be alerted
on legal, technical or health and safety management practice
developments that could affect your business.
• Effective internal communication is essential if health and safety
procedures / policies are to be understood and consistently
implemented.
 METHODS OF COMMUNICATING HEALTH
AND SAFETY
Methods of communicating h & S issues
1. Permanent written documents,
Safety bulletins and newsletters
2. Employees can be informed through posters,
These can make a more immediate and emotional
impact
3. Face-to face discussion supports other communication
activities by enabling employees to participate
4. Films and slides – useful in training or presentation in
formal meetings.
 Principles of communicating healthy and
safety issues
• Avoid negatives – successful safety propaganda
should contain positive messages not warnings of
unpleasant consequences of actions
• Expose correctly – address message to right
people at the point of danger
• Maximize comprehension – messages should be
simple and specific
• Message must be believable – address real issues
 BENEFITS OF TRAINING ON HEALTH AND
SAFETY
• contribute towards making your employees
competent in health and safety;
• helps your business avoid the distress that
accidents and ill health cause;
• Helps avoid the financial costs of accidents
and occupational ill health.
ORGANIZING HEALTH AND SAFETY
• Health and safety issues are collective
responsibilities although the main
responsibility lies with management in general
• The management responsibility therefore is to
ensure they strategize on how to make the
workplace safe for everyone.
• One way of achieving this is through role
assignment to different individuals in
organizations.
 WELFARE SERVICES
• Welfare services are actions or procedures
that cover the basic well-being of the
individuals and the society.
• Welfare services may be provided for matters
concerning employees which are not
connected to their jobs although they may be
connected generally with their place of work.
 PRINCIPLES OF EMPLOYEE WELFARE SERVICES

• The service should satisfy real needs of the workers.  This means that
the manager must first determine what the employee's real needs are
with the active participation of workers.
• The service should be handled by cafeteria approach.  Due to
differences in sex, age, marital status, number of children, type of job
and the income level of employees they should be allowed to make a
choice in a particular benefit.  This is known as the cafeteria
approach.  Such an approach individualizes the benefit system though
it may be difficult to operate and administer.
• The cost of the service should be calculated and its financing 
established on a sound basis.
• There should be periodical assessment or evaluation of the service
and necessary timely on basis of feedback.
WHY PROVIDE WELFARE SERVICES
• Increased effectiveness
• Helps minimize decrease in productivity
• Reduces causes of anxiety
• Helps improve image of the firm as a good
employer
• Increase commitment
• Help in retention of key employees
CATEGORIES OF WELFARE SERVICES
Individual or personal welfare
• Sickness – write a letter to wish them speedy recovery
or visit
• Bereavement – help with funeral arrangements
• Domestic problems – counseling services
• Financial counselling

Group welfare services

– Social clubs and sporting activities, restaurants,
child care facilities etc.
 Other Welfare services
• Supply drinking water at convenient locations
• Washing facilities – clean and maintained
• Accommodation for clothing: not worn during
working hours
• Facilities for sitting: for sitting opportunities
during work esp. for women
• First aid; first aid box in factories .cupboard.
Well maintained
 Labour laws
A)Employent Act: This law contains conditions of
employment and determines the basic requirement
between master and servant relationship. The main
objective is to provide some protection to the worker or
employees .
• CONDITIONS OF EMPLOYMENT
 Employment act has basic set of conditions of
employment. They include sickness and medical attention
provision. Leave benefits, housing and welfare, payment of
wages when and where to pay it, deductions to be made
from wages.
 PROVISION OF WAGES
•wages should be paid directly and the entire amount in kshs.
•Payment should be on a working day during working hours
•Casual workers to be paid at the end of the day
 Not to be paid in alcohol taking convenience
 worker free to use his wages in any suitable manner and not to benefit employer directly or
indirectly
 Into an account at bank or building society in his name by cheque, Postal order, money order
 In absence of employee, to a person other than an employee if the person is duly authorized by him
in writing to receive wages on his behalf
 Should be done on working days , working hours at nearest place of employment or where agreed
between the two
 Authorized deductions by employer:
 NSSF
 NHIF
 PAYE deductions-
 Union dues- where union is recognized
 Reasonable amount for any damage done/ loss of any property
 LEAVE ENTITLEMENTS
 Normal leave- 21 days//0 days
 Sick leave
 Unpaid leave
 Convalescent leave- period needed for returning to
health and strength after illness and injury
 Special eave for sports men including training periods
 Maternity leave 3 months but forfeit annual leave for
that year
 Paternity leave( 2 weeks)
 HOUSING
 Every employer should provide housing or pay
cost towards cost of accommodation
 Should not be less than 15% of basic wage and
salary
 Medical attention
 Employees should receive treatment as soon
as the illness reaches the knowledge of
employer
WATER:
 Sufficient water for use of employees at the
place of employment
 DEATH OF EMPLOYEE
 should be brought to attention of employer soonest
where employer gives notice to labour officer
 Employer pays labour officer all wages due to
employee at the date of death and all property of
deceased for transmission to the person legally
entitled.
 Report in a prescribed form about any injury or
incapacitation or death in the course of
employment should be given to labour officer
Termination of service/ contract/ dismissal
• The following matters amount to gross misconduct to justify
summary dismissal:
 If without leave /other lawful course he’s absent from place of work
 Intoxicated during working hours
 Neglecting any work which was his duty
 Uses insulting / abusive language. Behaving in a manner insulting to
his employer
 Employee arrested under any written law for a recognizable offence
punishable by imprisonment or not released within 10 days on bill or
bond
 Committed criminal offence against detrimental of his
employer/property
 Employment of women and juveniles

 No child other than serving under a contract

of apprenticeship shall be employed in an
industrial undertaking in attendance of
 machinery, open cast workings service
working
 No child or woman shall be employed before
the hours of 6.30 am and 6,30 pm
 Women employment justification
• i) women or male young persons may be so employed in cases of
emergencies which could not have been controlled or foreseen, which
interfere with the normal working of the industrial undertaking and which
are not of a periodical nature;
•  
• (ii) women may be so employed in cases where their work is connected with
raw materials or materials in the course of treatment, being in either case
materials which are subject to rapid deterioration and their work during
those hours is necessary to preserve the materials from certain loss; and
 
• (iii) women, holding responsible positions of a managerial or technical
nature, or employed in health and welfare services, and not normally
engaged in manual work, may be so employed.
 Certificate of service
Every employee shall be given certificate of service by his
employer upon termination of his employment unless
worked less than four weeks . Contains the following
details:
 Name of employer
 Name of employee
 Date when employment commenced
 Nature and usual place of employment
 Date when employment ended
 Any other particulars
 WORK INJURY BENEFIT ACT
• Employer is liable to pay compensation to workman
for
• A) personal injury caused by him by accident in the
course of employment
 Injury must have resulted from some risk incidental to
the duties of the service and not during his personal
activities or self injury
• B) Any occupational diseases contracted by him e.g
lead products,radiation. Compensation is after having
worked for 24 months
 Compensation for death
• Incase of death from injury, dependants are
compensated . Sum of compensation is equal to 96
months earning.
• Court will order the amount to be apportioned to
dependants or how to invest
• Court determines amount of compensation if worker
did not leave any dependants who are dependent on
him
• If no dependants expenses for burial are paid by
employer
Compensation for total incapacity
• Sum paid is equal to 96 months earnings
• Nb claim for compensation is preferred within
2 years of accident occurrence
 Defenses available to employer
• Employer not liable to pay incase of the
following:
• A) injury does not result in partial /total
disablement of workman for period exceeding 3
days
• When there is willful disobedience to an order of
employer rule for purposes of securing safety of
workman
• Disregard of safety rules which he knew
 Occupational Safety and Health ACT
• Makes provisions for safety, health, welfare of workers employed in
factories
• Covers the following:
 Cleanliness- proper drainage, sanitary convenience available,
accumulation of dirt and refuse removed daily clean floor ceiling and
partitions of inside wars, staircase washed.
 Overcrowding:-every work room not less than 9 feet in height
 Ventilation: adequate
 Lighting:- natural or artificial- adequate
 Drainage of floors:- effective means of drainage in the course of
manufacturing
 Sanitary convenience; clean for male and female workers separately.
Adequate lighting , ventilated
 SAFETY
• Fencing machinery by safe guards, every moving part covered
• Inexperienced workers not to be employed to run any machine –receive sufficient
training first, under adequate supervision
• Hoists and lifts- good mechanical construction, properly maintained examined every 6
months. certificate of evaluation offered and put in register
• Lifting machines, chains ropes-like above. Examined every 6 moths
• cranes., lifting machines- not loaded beyond safe working load. Cranes should not
approach less than 20 feet. People removed from the area of operation
• Floors, stairs, access passages: sound construction and properly maintained . Free from
obstruction. Handrails provided
• Dangerous fumes; prohibition of entry
• Explosive inflammables /dust /gas: measures to prevent explosions , effective enclosure
or machinery use in the process removal of accumulated gas, fume, vapor
• Prevention of fire; prevent fire outbreaks, safe means of escape, for all persons n the
event of fire, fire equipment fighting facilities provided
CENTRALIZATION AND DECENTRALIZATION
CENTRALIZATION:
 Centralization is the systematic and consistent reservations of authority at
central points in the organization
 All decisions are made by one person or one committee of senior
managers right at the top of business
DECENTRALIZATION:
 Decentralization shares out authority to more junior employees
 Its the systematic effort to delegate to the lowest levels of authority,
except that which can only be exercised at central points
 National and multinational organizations decentralize decision making and
delegate power to regional managers
 FACTORS DETERMINING THE DEGREE OF CENTRALIZATION/decentralization

• 1) Nature of growth:
• If enterprise has grown or expanded, it will continue to retain its original structure until it becomes
unmanageable but if there is amalgamation and absorption, of different buss enterprises, it will prefer
departmentalization or decentralization.
• 2: outlook of top management: if the top management believes in uniformity, or it seeks unified
control, it will prefer strong centralized planning and control and vice versa if it has a liberal outlook
and believes in individual freedom
• 3. size and dispersal of operations; In large enterprises with wide dispersal of operations, creation of
divisions and departments for different activities and sub-activities will add to its efficiency and
profitability.
• 3. Extent of diversification: If the enterprise is dealing in a number of diverse products, it can not retain
its efficiency through functional division of work coz of too much work and thus would be unable to
give equal attention to each product hence separate departments or division will be important
• 4. nature of functions: there should be greater decentralization of the basic functions e.g production,
marketing, and finance hence efficiency will be achieved
• 5. AVAILABILITY OF MANAGERS: Decentralization will be possible only when managers of enterprise
are capable and experienced enough to make important decisions
 Advantages of centralization
 Business leaders tend to have plenty of
experience
 Managers get an overview of whole business
 Senior managers understand central
budgeting restrictions and can make decisions
to save whole business money
 Disadvantages of centralization
 Not many people are expert enough in all
aspects of the business
 Excluding employees from decision-making
can be de-motivating
 Decisions can take long
 advantages of decentralization
 Relief to top executives-executives devote greator effort
and attention to important issues
 Motivation of subordinates- develops initiative,
responsibility, morale among employees coz authority is
placed in hands of employees
 Intimate relationship-employees have greator
opportunities to come in close contact with one another
 Sense of competition-departments and divisions , have
different ideas, hence competition enhanced.
 Effective control
 Disadvantages of decentralization
 Lack of coordination coz each division enjoys
substantial freedom in formulating policies and
action plans( inconsistencies btwn sectors)
 Costly; its only large enterprises can afford high
operating costs of maintaining decentralized set ups
 Lack of able managers: its difficult to find persons
adequately equipped to run a division
 Junior employee may not be able to see the overall
situation and needs of an organisation
 Departmentation
• This is the process by which similar activities of the
business are grouped into units for the purpose of
facilitation smooth administration at all levels
• Process:
 Identification of work
 Analysis of details of each work
 Description of the function of the organization
 Entrust the function to a separate person who has
specialized in the respective field
 Fix scope of authority and responsibility
FORMS /BASIS OF DEPARTMENTALIZATION

A) Functional
departmentalization: departments are segregated i.e separated from each other
based on functions or tasks they perform eg production, finance, hr, marketing departments

B) Process departments: separated based on heir role in a production process eg in textile mill
where we may have a spinning department, weaving department, dyeing department, printing
department.
C) Product departmentalization; departments separated based on a type of product produced by
the company every department is responsible for producing and selling the type of products
assigned to them eg two-wheel departments, three wheel department, four wheeler department
D) Geographical depart mentation: Separate departments are made based on the company’s
operations to be carried out either over a vast area or within some restricted area through
branches or offices. First an entire area of operation ( eg world, country state, city )is decided
followed by divisions of that area of specialization eg operating globally through its different zonal
departments
E) customer depart mentation; departments are separated from each other based on
the types or groups of customers to be handled or dealt eg international. Local, bulk
purchasers, wholesale customers,, retail customers
F) Combined depart mentation: a company or an organization uses a mixture or
combination or union of two or more different bases of depart mentation eg 1-5
G) Time depart mentation: according to the division of their working time or job
shifts; eg night shift, morning, regular, evening etc eg those who render 24 hour
service
H) Number depart mentation; different departments are made after analyzing and
judging the maximum limit up to which number of persons can be managed or
educated or supervised or taken care of eg in schools, colleges for making division of
classes eg students number 1-50 to sit in A division of their class
 Importance of departmentation
 To make size of each dept manageable
 Secure advantages of specialization
 Makes it possible to expand an enterprise if there is grouping
 Feeling of autonomy –independent decisions can be made
 Fixation of responsibility: each person knows their specific role to play in
the total organization
 Upliftment of managerial skills; helps in the development of managerial
skill managers focus their attention on some specific problems which
provides them effective on the job training
 Fdacility in appraisal: appraisal of managerial performance becomes
easier when specific tasks are assigned to dept personnel
 Administrative control: it’s a means of dividing the large and complex
organization into small administrative units
 Importance of departmentation
 Increases operating efficiency of employees
 Makes executive be alert and efficient in his
duties
 Increases prestige and skill of department heads
 Makes H.o.d ‘s efficient
 Expansion of organization is possible
 Facilitates budget preparation, effective control
of expenditure
 LEADERSHIP
 Definitions:
 \This is the ability of management to induce
subordinates to work towards group ideas
with confidence and keenness
 It’s the ability of a superior to influence the
behavior of his subordinates and persuade
them to follow a particular course of action.
 NEED FOR LEADERSHIP
 Motivating employees-should breath life into the group and makes people eager to work
towards achievement of group goals.
 Morale building: good leadership is indispensible to high employee morale. The leader
lifts a man’s vision to higher sights , raises his performance and builds up his personality
 Creating confidence: an effective leader creates and sustains self-confidence and
enthusiasm among his followers
 Coordination: leadership helps to unify individual efforts .Leadership holds the group
intact, transforms chaos into order, keeps the group work towards the goal by enforcing
discipline
 Facilitates change: convinces people about need for change in a world of uncertainty
 Goal setting: a leader provides guidance to the group by setting and interpreting the
objectives. , he outlines operations of organization
 Representation: a leader is the representative of his followers. He serves as the personal
embodiment of the group and as a true guardian of its interests
 LEADERSHIP STYLES
AUTOCRTAIC OR AUTHORITARIAN LEADERHSIP
 Takes all decisions by himself without consulting his subordinates
 Demands complete loyalty and unquestionable obedience from
his followers
 Characteristics:
 maximum centralization of authority
Close supervision
Unilateral decision making( involving only one side only)
One way communication
Boss centered
 Fitted if task is simple and subordinates not competent
Democratic or Participative leadership
 permits subordinates participate in decision
making process
 Leads by consent of the group rather than
authority
 Characteristic:
Decentralization of authority
Participative planning
Two way communication
Team management
Majority opinion wins
 Improves job satisfaction, motivation, morale,
reduces resistance to change, helps in winning
loyalty of employees
 Appropriate when subordinates are
competent and tasks creative
• C) Laissez faire or free-rein leadership
 Leader leaves it to subordinates to decide and control
themselves believing they are competent and motivated
 he does not lead and avoids using his power
 Leaves group entirely to itself
 Does not interfere in the activities of his subordinates
 Believes people perform better if left free to make and
enforce their own decisions
 This type of leadership is only possible if where subordinates
are highly competent and fully dedicated to the organization.
D) BUREACRATIC STYLE OF LEADERSHIP
 Depends upon rules and regulations
developed by the leader.
 Rules specify functions and duties of every
member of the organization
 Little scope for initiative and subordinates like
to play safe
 THEORIES OF LEADERSHIP
a) TRAIT THEORY:
 This theory states that a successful leader should possess certain
traits or qualities
 Believes that leaders are born with leadership traits and not made
b) Situational theory:
 leadership is considered to be a function of the situation in which a
leader emerges and works
 i.e the traits and behavior of the leader are governed by the
demands of the situation .
 There interaction between the leader and the environment in
which he is operating
• C) BEHAVIORAL THEORY:
 Based on the assumption that leadership is based
on the assumption that leadership effectiveness
depends upon what the leader does.
 It is a function of effective role behavior
 Leader uses his skills to exercise influence and
modify behavior of his subordinates
 Leaders should behave in a away to inspire and
guide subordinates.
 Qualities of Good leaders
• A)INTELLIGENCE; above average, ability to think logically,
analyze accurately . Sound judgment, decisiveness
• B) Initiative and creativity; Strong inner motivation, urge
to accomplish something.
• Thinking is innovative
• Open Minded:
• C) Ready to adopt and absorb new ideas as per needs of
the situation
• Accommodates others readily
• D) Self confidence:
 Has confidence in himself and in what he is doing
E) Vision and foresight
 Should have imagination to anticipate problems well in advance
F) Maturity:
 Emotionally and mentally mature. Balanced temperament
G) Sense of responsibility
Should be able to shoulder responsibility for the consequences of his actions.
Integrity of character and sincerity.
h) Human relations skill:
 Has the tact and empathy to create mutual cooperation among his
followers
 Persuade, influences people by giving due attention to human relationships
 Balance: free from bias , prejudice, preconceived notions
 Understanding: understand other’s viewpoints
 Communicating skills.
 Good at communicating ideas, feelings, decisions., orders
good and effective speaker and writer.
 Sociability: keen interest in subordinates, meet them
often, encourage them.
 Technical competence; thorough knowledge of theory
and practice of his job
 etc
 COMMUNICATION
• Introduction: Its one of the most basic functions of
management and management can not succeed
unless it has properly developed communication
system.
• Meaning:
 sharing ideas in common
 verbal or written message, an exchange of
information, a system of communicating , process by
which meanings are exchanged between individuals
through common symbols
 PROCESS OF COMMUNICATION
• Communicator: process begins when the communicator or sender
has a message to communicate to others
• Message: this is the body or subject- matter of communication .
Contains words, symbols, pictures, which makes receiver
understand message
• Encoding: communicator or sender of information expresses his idea
into words. Symbols signs, gestures to convey message
• Communication channel- media through which msg passes from
sender to receiver. Eg, formal or informal media, written or oral
• Receiver-one who receives msg
• Decoding: receiver decodes message to derive meaning
• Feedback- reaction, reply or response
 CLASSES OF COMMUNICATION
 Classified on various basis:
a) Formal/ informal :
i)formal:
follows course laid down in organization as
per the channel laid down, (who you inform
any issue first, process) e,g sales manager-
salesmen-secretary-bookkeeper –messenger
ii) Informal: no laid down structure
 DIRECTION OF COMMUNICATION
 downward, upward, sideward- according to direction
• i) downward: from higher to lower levels of
management- policies, programmes, orders, to
subordinates
• Ii) upward: subordinates to their supervisors –
reports, suggestions, of improvements, inquiries,
complaints, grievances
• iii) sideward: subordinates at the same level- to
secure coordination in operations
 METHODS OF COMMUNICATION
•
a) oral or written
i) Oral- face to face when giving orders, instructions, requests. Information, observations
• Ii) interview- for purpose of recruitment or promotion
• Iii) Joint consultation: process where workers are consulted in every matter concerning
them and given every right to participate in decision makaing
• Iv) public communication- to announce a policy decision of workers , give lectures as
part of employee education programme, make speech. This needs proper homework
to get all facts and information correct . Also audience needs to be kept in mind to
avoid talking down to them or talking over their heads
• v) broadcasts-public announcements

• Task:
• Read on merits and demerits of the same
B. ) WRITTEN COMMUNICATION:
Written : Takes forms of memos, reports, emails, brochures, posters etc
 Includes:
 orders, from superiors to subordinates
 Instructions for proper guidance esp by supervisors
 Reports e.g on staff members annually
 Notice boards /Bulletin board – ( bulletins) for immediate
information to employees that can not wait for the next issue of
newsletter
 Magazines,- house journals
 News letters
 TASK: MERITS AND DEMEIRITS OF WRITTEN
C) COMMUNICATION THROUGH GESTURES:
 Facial expressions
 Postures
 Gestures
 Tone of voice
 Frown on face
 Other body movements eg nodding,
OTHER METHODS OF COMMUNICATION

• Speak up programmes-channels provided for

individual employees to raise points with
senior management concerning organization,
plans, policies
• Intranet- internal emails, employees have
access to a computer
• Facebook, twitter whatsap etc
 ESSENTIALS OF GOOD COMMUNICATION
 Clarity
 feedback
 Adequacy
 Right timing-proper time and reach receiver timely e.g. application
 Integrity actions and behavior of the communicator should be consistent with the
message
 Participation: receiver be involved in planning and transmission
 Two way communication- for feedback
 Grapevine use( rumors)- mngt should be used to supplement and strengthen formal
channels
 Economy- should not be unreasonably expensive , avoid irrelevant msgs and
communication overload
 Appropriate channels-tailor made to the problems and requirements
 Flexibility: adjusted to changing requirements of organization
 Attention: opeen mind and attentive
BARRIERS TO EFECTIVE COMMUNICATION
A) mechanical-
• i) distortion due to noise in the transmission
• Ii) filtering due to distance btwn communicator and communicate ( altered, twisted by
persons in between
• Iii) overloading- overworking of communication channel
B) ORGANISATIONAL BARRIER:
 Inadequacy of facilities e.g. meetings, conferences
 Inadequate policies. Rules, procedures- policy should be adequate . Too much
bureaucracy

C) PERSONAL BARRIERS
 Lack of attention or interest
 Hasty conclusions -in a hurry
 Lack of confidence in the communicator
 Improper state of mind-stress, . Mentally upset
IMPORTANCE OF GOOD COMMUNICATION

 Aids management to perform

 Aids to understand and accept work
 Aids to leadership – must be a two way process
 Aid to job satisfaction- if they know what they are
supposed to do
 aid to economy in time and effort-saves time and
effort if properly done and effectively done
 Aid to public relations-presents a good image to
outside world if you communicate well
 Hrm challenges and emerging issues
 Environmental and contextual changes present a number of competitive
challenges to organizations that mean that HR has to be involved in helping
to build new capabilities.
 These comprise:
 Globalization-which requires organizations to move people, ideas, products
and information around the world to meet local needs. New and important
developments must be considered when making strategies for the
organization:eg volatile political situations, contentious global trade issues,
fluctuating exchange rates and unfamiliar cultures.
 Profitability through growth-the drive for revenue growth means that
companies must be creative and innovative and this means encouraging the
free flow of information and shared learning among employees. Organizations
should embrace L.O and have O.L taking place.
 
 Technology-technology is changing from labour intensive to
capital intensive where it is evolving in such a way that
organizations do not rely on labour. The challenge to HRM is
how to adjust the labour force to capital technology and how to
make technology a viable, productive part of the work setting
 Intellectual capital-This is the source of competitive advantage
for organizations. The challenge is to ensure that firms have the
capability to find, assimilate, compensate and retain human
capital in the shape of the talented individuals they need who
can drive a global organization that is both responsive to its
customers and ‘the burgeoning( growing) opportunities of
technology
 they have also to consider the social capital of the organization-
the ways in which people interact can be developed. Importantly,
organizations have to focus on organizational capital-the
knowledge they own and how it should be managed.
 Change, change and more change-the greatest challenge
companies face is adjusting to change-indeed, embracing non-
stop change. They must be able to ‘learn rapidly and
continuously, and take on new strategic imperatives faster and
more comfortably
 Changing status of labour-The status of present day workers
has changed in several ways making it difficult and complex to
manage: eg millennials vs older
 Changing expectations of labour-society expects present
workers to live a good life. As a result, the workers expect to be
paid better salaries to meet the society’s expectations.This is a
challenge to HR managers in that sometimes, they are unable to
meet the expectations of labour
 Government labour guidelines-the govt is increasing the
fatherly attitude to labour with more new labour laws that favor
the workers.
-The challenge to HRM is how to operate within the legal
boundaries (the labour guidelines eg minimum wages
,employment, WIBA ( work injury benefit act) and at the same
time ensure organizational profits
 Change in composition of workforce-the % of blue
collar jobs is falling to white collar jobs. This has been
brought about by advancement in technology and
professional attainment..This is increasing the wage bill
at the expense of the organization’s profits.
 Women in Management-there is a rapid increase in the
number of women in management and in the workforce
-It poses a challenge to HR managers in that when women
are out for their maternity leaves, the organization has to
pay ‘double’ salaries to those relieving them
 .Demand for higher salaries and wages; HR managers are
faced with the challenge of increasing the wages at the expense
of the organizational profits
 .Demand for shorter working time- standard working week is
5 days/8 hrs a week. HRM faced with the challenge on how to
increase productivity with less people who are demanding higher
wages
 Higher educational attainment by employees who are
sometimes more qualified than their superiors or employers
and as such, they expect more rapid upward mobility and better
terms. Managers are faced with the challenge to accommodate
such workers without affecting their morale