HRM PPT(Mgmt).ppt

Haramaya University
Department of Management
Lecture
on
Human Resource Management
January 22, 2024

Course Contents
Ch-1: Overview of HRM
Ch-2: HRM Environments
Ch-3: Job Analysis & HR Planning
Ch-4: Recruitment & Selection
Ch-5: Training & Development
Ch-6: Performance Appraisal
Ch-7: Compensation
Ch-8: Integration & Maintenance
Ch-9: Promotion, Transfer & Separation
Ch-10: Sexual Harassment at Workplace
January 22, 2024

Chapter One: Overview of Human Resource
Management
 Chapter Outline
 Definition of Human Resource Management
 Basic Management Functions
 Features of Human Resource Management
 The Process of Human Resource
Management
 Why Human Resource Management?
 Objectives of Human Resource Management
 The Role of Human Resource Management
 Human Resource Management Evolution &
Theories January 22, 2024

Definition of HRM
Several Definitions:
 Human resource management (HRM) is
concerned with the “people” dimensions in
management.
 HRM is the term increasingly used to refer to
the philosophy, policies, procedures and
practices relating to the management of people
within organizations.
January 22, 2024

Cont’d
 Those organizations that are able to acquire,
develop, stimulate and keep outstanding
workers will be both effective and efficient.
 Human resource thus, creates organizations
and makes them survive and prosper.
 If human beings are neglected or mismanaged,
the organization is unlikely to do well.
January 22, 2024

Cont’d
 HRM is the management of one of the most
important resources of organizations; the-people
January 22, 2024
Human
Resource + Management
People
• Plan
• Organize
• Staff
• Direct
• Control

Cont’d
 When the definition is broken down to
its specific components, we find the
basic management functions and its
application to managing human
resources.
January 22, 2024

Basic Management Functions
 Planning: Establishing goals and standards,
developing rules and procedure, developing
plans and forecasting- predicting or projecting
some future occurrence.
 Determining, in advance, a personnel /HR
program that will contribute to the goals of an
enterprise (human resource requirement plan).
January 22, 2024

Cont’d
 Organizing: Giving each subordinates a
specific task; establishing departments;
delegating authority to subordinates;
establishing channels of authority and
communication; coordinating the work of
subordinates.
January 22, 2024

Cont’d
 Directing: Getting others to get the job
done; maintaining morale; motivating
subordinates.
 Controlling: Setting standards of
performance, checking to see how actual
performance compares with these standards;
taking corrective action as needed.
January 22, 2024

Cont’d
 Staffing:
 Procurement: Concerned with obtaining
proper kind and number of human resources
necessary to accomplish organizational goals.
 It specifically deals with determination of HR
requirement, recruitment, selection, and
placement.
January 22, 2024

Cont’d
 Development: It is the increase of skill,
through training and development programs,
needed for proper job performance.
 This function is essential as nature of jobs
change through time due to technological
advancements, realignment of jobs, and other
complexities that come along with expansion
of a business.
January 22, 2024

Cont’d
 Compensation: It is the adequate and
equitable remuneration of personnel for their
contribution to organizational objectives.
 It could be made in the form of money –
salary, bonus, or fringe benefits such as
medical insurance, transportation or housing
allowance, dependency allowance, stock
options, etc.
January 22, 2024

Cont’d
 Integration: It is concerned with the attempt
to effect a reasonable reconciliation of
individual, societal and organizational interest.
 It rests upon the foundation of a belief that
significant overlapping of interests do exist in
our society.
 It is often the case that there is a difference in
what employees, management, and/or society
expects from each other.
January 22, 2024

Cont’d
 Maintenance: It is concerned with the
perpetuation of the state where by interest of
individuals, organizations and the society is
reconciled.
 It is going to be a continuous effort that
involves the active involvement of the HRM in
ensuring the changes that may affect the
reasonably good working environment and
make the necessary corrective measures.
January 22, 2024

Cont’d
 Separation: It refers to the process involved in
HRM when an employee is separated from an
organization.
 Depending on the reason why an employee
separates from an organization, HRM will take
the necessary action to ensure that such
employees pass through required processes as
specified by the policies and procedures of the
organization.
 Some of these reasons include retirement, layoffs,
out-placement, discharge, etc.
January 22, 2024

Features of HRM
 People Oriented: Human Resource
Management is concerned with employees
both as individuals and as group in attaining
goals.
 Comprehensive Function: Human
resource management covers all levels and
categories of employees.
January 22, 2024

Cont’d
 Individual-oriented: Under human
resource management, every employee is
considered as an individual so as to provide
services and programs to facilitate employee
satisfaction and growth.
 Continuous Function: Human resource
management is a continuous and never ending
process.
January 22, 2024

Cont’d
 A Staff Function: Human resource
management is a responsibility of all line
managers and a function of staff managers in
an organization.
 Pervasive Function: Human resource
management is the central sub function of an
organization and it permeates all type of
functional management viz., production
management, marketing management and
financial management.
January 22, 2024

Cont’d
 Challenging Function: Managing of
human resources is a challenging job due to
the dynamic nature of people.
 Development–oriented: Individual
employee-goals consists of job satisfaction,
job-security, high salary, attractive fringe
benefits, challenging work, pride, status,
recognition, opportunity for development etc.
January 22, 2024

The Process of HRM
HRM is a process consisting of
about four functions:
1.Acquisition of human resources
2.Development of human resources.
3.Maintenance of human resources.
4.Separation
January 22, 2024

KEY HR PROCESS & SYSTEMS
Key Process and Systems
HRP
Job Analysis
Procurement
Staffing:
Recruitment
Selection
Placement
Transfer
Promotion
Orientation
Training &
Development
Maintenance
Performance Appraisal
Appraisal
Compensation & Reward
Protection (Safety&
Health Management)
Separation
Resignation
Discharge
Retirement
Lay-off
January 22, 2024

Cont’d
 Acquisition Function: Acquisition
process is concerned with securing and
employing the people possessing required kind
and level of human resources necessary to
achieve the organizational objectives.
 Development function: Development
function is the process of improving, molding
and changing the skills, knowledge, creative
ability, aptitude and values.
January 22, 2024

Cont’d
 Maintenance Function:
The maintenance function is concerned
with providing those working
conditions that employees believe are
necessary in order to maintain their
commitment to the organization.
January 22, 2024

Cont’d
 Separation: It refers to the process involved
in HRM when an employee is separated from
an organization.
 Some of the reasons for separation include
retirement, layoffs, out-placement, discharge,
resignation, etc.
January 22, 2024

Why HRM?
 Changing employee needs
 Increased complexity
 Increased legal complexity
 Developing Human Resource
Policies
 Human Resource Information
Systems (HRIS)
 Human Resource Cost- effectiveness
January 22, 2024

HRM History: Evolution &
Development
Discussion Session
 When was the management of
people begun?
January 22, 2024

Cont’d
 The origins of managing people can be traced
back to the existence of man as a social
animal.
 HRM as a practice is as old as the human
society itself.
 Think of the Egyptian pyramid, the Wall of
China, the Obelisk of Axum and the church of
Lalibela.
January 22, 2024

Cont’d
 The most documented beginnings were as a
result of the Industrial Revolution, where the
mass production of goods had significant
implications for the ‘employees’ operating this
machinery.
 At the beginning of the Industrial Revolution
factories in order to maximize profit they were
using :
January 22, 2024

Cont’d
• Long hours of work
• Minimum pay
• Poor working condition (often overcrowded,
little or no sanitation and clean water, disease,
accidents and death were common place as a
result of the poor sanitary conditions)
• Unsafe working conditions and hazards.
• Women and children were often ‘employed’ in
these factories, often receiving no wage but
received shelter and food in return for their
labor.
January 22, 2024

Robert Owen (1771-1855) and Human
Resource Management
 Robert Owen, an owner of a textile mill in
Scotland made an attempt to improve the
relationship between workers and owners.
 He tried to improve the relationship in his own
factory by undertaking the following:
January 22, 2024

Cont’d
• Improved working conditions
• Reduced hours of work
• Allowed workers to buy the product of the
factory at cost
• Opened school for the children of the factory
• Paid workers even when work interrupted
• Provided meal
• Provided bathroom facilities
January 22, 2024

Cont’d
 For the contribution he has made to HRM
he is referred to as the father of modern
personnel management.
January 22, 2024

Management Theories & their
Influences on HRM
 A range of management theories have had
direct application to the development of
human resource practices. These include:
• Classical Management Theory: Scientific
Management (Taylor)
• Classical Organizational Theory (Fayol, Weber)
• Behavioral School (Industrial Psychology)
• Management Science (Quantitative)
• Integrative Approaches: Systems Theory
• Contingency Approach
January 22, 2024

Cont’d
1. Classical Management Theory (Scientific
Management, Frederick Winslow Taylor)
• Analyze jobs scientifically, find one
best way of doing a job,
• Select employees scientifically
• Training ensures employee and job fit
• Use accounting and control
• Provide Incentives
January 22, 2024

Cont’d
 Taylor’s work has been developed by:
Frank and Lillian Gilbreth who have
included productivity, time and motion
study and scheduling
January 22, 2024

Cont’d
2. Classical Organizational Theory
◦ Henry Fayol (Administrative Theory)
identified major management
functions planning, organizing,
commanding, coordinating and
controlling and the fourteen principles
◦ Max Weber (Bureaucratic Theory)
suggested bureaucracy as rational,
legal, ideal method of administration
with its characteristics (Division of
labor, rules, impersonality,
January 22, 2024

Cont’d
3. Behavioral School (Industrial Psychology)
◦ Applied psychological researcher, Elton
Mayo initiated the human relations from
Hawthorne studies. It identified that
employees react positively to management
concern, communication and
participation.
◦ Subsequently studies of Abraham Maslow,
Frederic Herzberg supplement his
findings.
January 22, 2024

Cont’d
4. Management Science (The quantitative
School)
 Focus on measuring the outcome of jobs
and work systems.
 Applications include production schedule,
productivity strategies and consequent
management planning and control
mechanism.
 This works on more of managerial decision
making than managerial behavior.
January 22, 2024

Cont’d
5. Integrative Approaches: Systems Theory
 Systems approach sees organizations as
unified systems with specific inputs, process
and outputs.
 Important features include interaction's
between jobs, technology, environment
(Internal and external) and control
mechanisms.
 HR aspect include communication between
the various subsystems, the coordination of
inputs and outputs, and effective interaction
January 22, 2024

Cont’d
6. Contingency Approach
 Contingency approach contends that every
organization and environment is different and
therefore requires a different approach.
 Scientific management, organizational theory,
behavioral science or management science
may or may not apply, according to business
circumstances.
 Victor Vroom and Fiedler among others have
successfully applied this theory to leadership
and management of behavior. January 22, 2024

Which Theory and Principles to use in
HRM?
 Discussion Session
January 22, 2024

Which Theory and Principles to use in
HRM?
 Application of human resources management
theory differ from the view of scientific
management of ‘ one best way’ practice.
 Diverse national and industrial relations
environment demand different HRM
applications.
 Thus , an HRM theory derived from one
country such as the United States experience
may not be suitable for Ethiopia or other
countries.
January 22, 2024

Cont’d
 Thus, the application of Human Resource
Management need to be contingent on specific
situations.
January 22, 2024

Objectives of HRM
 Human resource management pursue
several objectives.
 The primary objective of HRM is to
ensure a continuous flow of competent
workforce to an organization.
 Three categories of HRM objectives
include owners objectives,
January 22, 2024

Cont’d
Owners objectives:
 Human resource management contributes
to the objectives of the owners.
 Profit for business organizations.
 Satisfy users and owners for non business
organizations.
 Ensure the continuous flow of competent
work force and their contributions to the
fulfillment of organizational objective.
January 22, 2024

Cont’d
Social/legal Objectives:
 HRM satisfy customers needs, fair
competition, keep societies welfare including
safe products and healthy environment.
 Political-legal objectives comply with
government laws and regulations, avoid
decimation, allow equal employment
opportunities, fair treatment, minimum pay,
working hours, Affirmative actions, etc.
January 22, 2024

Cont’d
Employee objectives:
Satisfy employee needs,
achieve quality work life
(QWL), by creating job
satisfaction and by providing
less work and more leisure
January 22, 2024

Roles of HRM
1. Strategic partner:
 Aligning HRM strategies to business
strategies is important to help the company
execute its business strategy
2. Administrative expert:
 Designing and delivering efficient and
effective HRM systems, processes, and
practices; such as systems for selections,
training, developing, appraising and
rewarding employees.
January 22, 2024

Cont’d
3. Employee Advocate:
 Entails managing the commitment and
contributions of employees. No matter how
skilled an employee is, if he is angry or
alienated, he will not contribute his efforts
to the firms’ success, nor will he stay with
the firm for long.
4. Change agents:
 HRM must help in transforming
organizations to meet the new competitive
conditions. You need to change and develop
a capacity for change, communicate,
January 22, 2024

1. Job Analysis (Job Description,
Specification)
2. Human Resource Planning
3. Recruitment and Selection
4. Orientation
5. Training and Development
(Coaching)
January 22, 2024

Cont’d
7. Encouraging teamwork
8. Rewarding employees
(Compensation)
9. Benefits and Services
10.Counseling employees
11.Labor Relations
12.Discipline and Termination
January 22, 2024

Chapter Two
Human Resource
Management
Environments
January 22, 2024

Chapter Outline
HRM Environment
1. External Environment
2. Internal Environment
January 22, 2024

The Context of HRM
January 22, 2024

HRM Environment
 Human Resource management as a system is
affected by several factors including external
and internal environment.
 External Environment are those factors that
are outside the organization, they are
largely uncontrollable and provide
opportunities and threats (OT) to the
organization. The analysis of external
environment is some times called PEST
analysis
January 22, 2024

Cont’d
• Internal environment are factors within
the organization, they constitute the
strengths and weaknesses (SW) of the
organization.
• The analysis of the internal and external
environment together is called SWOT
analysis
January 22, 2024

Cont’d
 External Environment
 Political/legal
 Ethical
 Economic
 Social
 Technological
January 22, 2024

Cont’d
 Internal Environment
 Vision, mission,
 Organizational styles, leadership
 Organizational Structure
 Nature of the task
 Work groups
January 22, 2024

External Environment
1. Political/Legal:
 Governments make different laws that require
human resource management to respect. Laws
include:
• Equal employment opportunities,
• Affirmative actions,
• Compensation & benefits,
January 22, 2024

Cont’d
• Safety & health,
• Hours of work, holidays,
• Industrial relations etc.
January 22, 2024

Cont’d
 Equal Employment Opportunity
 Discrimination
 Forbids discrimination in all areas of the
employment relationship.
 Employment based on age, sex, disabilities,
national origins (ethnicity), religion,
compensation (payment on similar jobs) etc.
January 22, 2024

Cont’d
Equal Employment Opportunity
◦ Affirmative Action
 Governments encourage affirmative
action; the commitment of employers
to proactively seek out, assist in
developing, and hire employees from
groups that are underrepresented in
the organization.
January 22, 2024

Cont’d
 Various executive orders require
employers to develop affirmative
action plans and engage in affirmative
action in hiring veterans and the
disabled.
January 22, 2024

Cont’d
Compensation & Benefits
 Fair Labor Standards Acts
Sets a minimum wage and
requires overtime pay for work
in excess of 40 hours per week
for non exempt employees.
January 22, 2024

Cont’d
 Compensation & Benefits
 Employee Retirement Income
Security
• Sets standards for pension plan
management and provides
federal insurance if pension
plans go bankrupt.
January 22, 2024

Cont’d
 Family & Medical Leave Act
• Requires employers to provide couple
of
weeks of unpaid leave for family and
medical emergencies.
January 22, 2024

Cont’d
Health & Safety
Occupational Safety & Health Act
(OSHA) requires that employers:
• Provide a place of employment
that is free from hazards that
may cause death or serious
physical harm.
January 22, 2024

Cont’d
 Obey the safety and health
standards established by
Occupational Safety and Health
Act(OSHA).
January 22, 2024

Cont’d
Labor Relations
Sets rules on how employers
and employees relationship is
governed
• Joining union
• Establishing union
• Bargaining in good faith etc.
January 22, 2024

2. Ethical HR Practices
◦ HRM practices must result in the
greatest good for the largest number
of people
◦ Employment practices must respect
basic human rights of privacy, due
process, consent, and free speech
◦ Managers must treat employees and
customers equitably and fairly
January 22, 2024

3. Economic Environment:
 Such as the business cycle,
inflation, income level,
competition, etc.
January 22, 2024

4. Social Environment:
Such as demographic factors,
culture, religion, belief on work
etc.
January 22, 2024

5. Technology Challenge
 Advances in technology have:
◦ Changed how and where we work
◦ Resulted in high-performance work
systems
◦ Increased the use of teams to improve
customer service and product quality
◦ Changed skill requirements
◦ Increased working partnerships
◦ Led to changes in company structure and
reporting relationships
January 22, 2024

Cont’d
◦ Increased the use and availability of
Human Resource Information
Systems (HRIS)
◦ Increased the use and availability of e-
HRM
◦ Increased the competitiveness in high
performance work systems
January 22, 2024

Global Challenge
 To survive companies must compete in
international markets
 Be prepared to deal with the global
economy.
 Off shoring – exporting of jobs from
developed countries to less developed
countries
 On shoring – exporting jobs from urban
parts to rural parts
January 22, 2024

Internal Environment
 Vision, mission, objectives and
strategies- HRM require to align its
activities to these requirements.
 Styles of Management- the styles of
management whether it is autocratic,
democratic or laissez faire has direct
implication for the work of HRM.
January 22, 2024

Cont’d
 Nature of the task- whether the job is
attractive or repulsive
 Organizational Structure- Number of
positions and relationships
 Work groups- Whether the work group is
supportive
January 22, 2024

HRM Models
There are several models of human
resource management. Two of the
several models are:
1. General systems model of HRM
with environment, inputs,
transformation process and
outputs.
2. The Harvard HRM model
January 22, 2024

Cont’d
 General Systems HRM Model
January 22, 2024
Human Resource
Management Activities
Environment
Feedback
Satisfaction
• Organizatio
nal
Objectives
• Employee
Objectives
• Societies
(Stakeholder
s
Objectives)
• Knowledg
e
• Skills
• Attitudes
• Talents
• Informatio
n

Cont’d
 The Harvard HRM model
January 22, 2024

Chapter 3
Job Analysis
&
HR Planning
January 22, 2024

Chapter Outline
1. Definition of Job Analysis
2. Who is involved in JA
3. Components of JA
4. JA Steps
5. JA Potential Problems
6. Job Design
January 22, 2024

Chapter Outline
7. HRP Meaning (Definition)
8. HRP Importance
9. HRP Steps
January 22, 2024

1. Definition of Job Analysis
 The reason why people are required in an
organization is to fill job vacancies and to
do the job.
 This requires human resource
management to understand the nature of
the job & the nature of the person required
for the job.
January 22, 2024

Cont’d
 Job analysis is a systematic process of
collecting and making judgment about all
of the important information related to the
nature of the job.
 It is the basis of all human resource
management activities.
 Job analysis objectives are to achieve
information on the following job and
person aspects:
January 22, 2024

Cont’d
• What a worker does-workers function
• How a worker does-methods and
techniques used
• What aid is necessary-machines, tools,
experts etc.
• What qualifications are necessary-
knowledge, skills, abilities, experience
• The output of job analysis are job
description & job specification
January 22, 2024

Multifaceted Nature of Job Analysis
Safety & health
Compensate
Performance appraisal
Career dev’t Employee dev’t
January 22, 2024
Job
Analysis
Recruiting
Selection
Strategic HR
Planning
Employee
Training
Labor Relations

2. Components of Job Analysis
January 22, 2024
Job Description—a listing of the
job’s duties; its working
conditions; and the tools,
materials, and equipment
used to perform the job. It
identifies the picture of the
job
Job
Description
Job Specification—a listing of the
skills, abilities, and other
credentials the incumbent
jobholder will need to do a job.
It identifies the picture of the
person.
Job
Specification
Job
Analysis

3. Steps in Job Analysis
1. Determine the purpose of the
JA
2. Gather Information about
jobs to be analyzed
3. Write the job Analysis
4. Obtain Approval
January 22, 2024

3.1 Determine the Purpose of JA
 Job analysis serves several purpose of HRM
 How do you want to use the JA?
• Legal requirement
 Manpower Planning
 Recruiting
 Selection
 Performance appraisal
 Training
 Compensation, etc
January 22, 2024

3.2 Gather Information about Jobs
 Decide which jobs to include in the job
analysis project
 For similar jobs select representative jobs
 Different methods of gathering data
include:
1. Interviews
2. Questionnaire
3. Observation
4. Diary/Logs
5. Critical Incident Technique (CIT)
January 22, 2024

Cont’d
Interview Method
Individual
 Several workers are interviewed individually
 The answers are consolidated into a single
job analysis
Group
 Employees are interviewed simultaneously
 Group conflict may cause this method to be
ineffective
◦ The interview method requires that all
employees are asked the same questions in
the same order. January 22, 2024

Cont’d
Questionnaires
◦ Employees answer questions about the job’s
tasks and responsibilities
◦ Each question is answered using a scale that
rates the importance of each task
 Not all jobs are the same, so questionnaires
may overlook certain aspects of the job. Also,
follow-up methods are not usually organized
to gather extra information.
 Computerized versions of questionnaires can
be very expensive.
January 22, 2024

Cont’d
Diary Method
◦ Incumbent Employees record
information into diaries of their daily
tasks
Record the time it takes to complete
tasks
◦ Must be over a period of several
weeks or months
 This method can be very expensive
because of the time it takes to complete it.
January 22, 2024

Cont’d
Observation Method
◦ Analyst observes incumbent
Directly
Videotape
◦ Useful when job is fairly routine
◦ Workers may not perform to
expectations
January 22, 2024

Cont’d
Critical Incident Technique (CIT)
◦ Takes past incidents of good and bad
behavior
◦ Organizes incidents into categories
that match the job they are related to
◦ The CIT is helpful in illustrating to an
employee what kind of behavior is
required for the job.
January 22, 2024

3.3 Write the Job Analysis
 Many organizations write as job
description combining both job
description and specification.
 However it can also be presented in two
parts as job description and specification.
 The following Items are common to both
job description and specifications:
January 22, 2024

Cont’d
1.Job Identification (Title, Date,
Approvals, Supervisor’s title
,Salary, Grade level)
2.Job Summary (General nature,
Major functions or activities,
Includes general statements)
3.Relationships (works with who)
January 22, 2024

Cont’d
Job Description
1. Job Identification (Title, Date,
Approvals, Supervisor’s title
,Salary, Grade level)
2. Job Summary (General nature,
Major functions or activities,
Includes general statements)
3. Relationships (works with who)
January 22, 2024

Cont’d
4. Responsibilities and Duties (Limits
of authority, what is done-such as
sales, lifts, drives etc.)
5. Standards of Performance
(Quality, quantity etc.
6. Working Conditions and Physical
Environment
January 22, 2024

Cont’d
Job Specification
1.Job Identification (Title, Date, Approvals,
Supervisor’s title ,Salary, Grade level)
2.Job Summary (General nature, Major
functions or activities, Includes general
statements)
3.Relationships (works with who)
4.Qualifications
5.Experiences
6.Behaviors
January 22, 2024

4. Potential Problems of JA
Employees may resist JA
because:
Resistance to change
Possible changes to job duties
Changes to pay
Lack of trust of consequences
January 22, 2024

Who is involved in the job analysis?
• Management
• Supervisors
• Job analysts
• Job incumbent
• Unions
• Consultants
January 22, 2024

5. Job Design
 Job design is the process of
determining the specific tasks to be
performed, and methods used in
performing these tasks, and the way
the job relates to other work in the
organization.
 There are two major components of job
design: job enlargement and job
enrichment.
January 22, 2024

Human Resource
Planning
(HRP)
January 22, 2024

1. HRP: Definition
 Human resource planning (HRP) is
the process of analyzing and
identifying the need for and
availability of human resources so
that the organization can meet its
objectives.
 The organizational strategy of the
firm as whole becomes the basis
for human resource planning
January 22, 2024

2. HRP: Importance
If you don’t plan you
will end up either with
famine or overwhelm!
January 22, 2024

Cont’d
 Helps to determine future human
resource needs
 Coping with change
 Foundation for personnel functions
 Provides information on the status
of the human resource
 Reduces cost and budget of
human resource management
January 22, 2024

3. HRP: Steps
Action Plan January 22, 2024
Environme
nt
Strategic
Plan
Job
Analysis
Total Human
Resource
Demand
Forecasting
Total Human
Resource
Supply
Forecasting
Net Human
Resource
Requiremen
t
Anticipated
Change
Policies

3.1. Total HR Demand Forecast
• Determining the demand for total work force
requirement through the analysis of
organization's operations
• Use projections of operations, output
person and productivity
• Estimate of numbers and kinds of
employees the organization will need at
future dates
• Demand for firm’s goods or services must
be forecasted. Forecast is then converted
into people requirements
January 22, 2024

Relationship b/n Sales Volume &
Number of Employees
Number of
Employees
January 22, 2024
500
400
300
200
100
0 10 20 30 40 50 60
Sales (thousands)

HR Demand Forecast
New organizations:
• Require the study of other similar
organizations (benchmarking)
• Utilizing a range of qualitative or
quantitative forecasting methods.
• Quantitative methods use a range of
statistical and mathematical
techniques such as regression,
productivity ratio and Staff ratio
January 22, 2024

Cont’d
• Qualitative methods use mainly
judgmental methods, rule of thumb,
feedback from people who provide
analysis and predictions.
• Tools such as brainstorming, NGT &
Delphi are used
January 22, 2024

3.2. HR Supply Forecast
 Forecasting Availability of Human
Resources (SUPPLY)
External Supply Forecast
 Potential employees available to
the organization needs include:
January 22, 2024

Cont’d
• Individuals entering and leaving the
workforce
• Individuals graduating from schools and
colleges
• Changing workforce composition and
patterns
• Economic forecasts for the next few years
• Technological developments and shifts
• Actions of competing employers
• Government regulations and pressures
• Factors affecting persons entering and
January 22, 2024

Cont’d
Internal Supply Forecast
 Internal supply refers to the manpower
inventory available within the organization.
Internal supply information which include:
• Skill Audit-employees on non-
managerial jobs
• Management Audit-employees in
managerial jobs
• Human Recourse Information System
(HRIS)
January 22, 2024

Cont’d
Human Resource Information Systems
(HRIS):
◦ An integrated system of hardware, software,
and databases designed to provide
information used in HR decision making.
◦ Benefits of HRIS:
 Administrative and operational efficiency
in compiling HR data
 Availability of data for effective HR
strategic planning
January 22, 2024

Cont’d
◦ Uses of HRIS:
Providing information about human
resource in organizations
(employment, skill, tracking
affirmative actions etc.)
Automation of payroll and benefit
activities
January 22, 2024

Cont’d
January 22, 2024
Uses
of
HR
Information
System
(HRIS)

Cont’d
HRIS Design Issues:
◦ What information available and what
is information needed?
◦ To what uses will the information be
put?
◦ What output format compatibility with
other systems is required?
◦ Who will be allowed to access to the
information?
◦ When and how often will the
information be needed? January 22, 2024

3.3. Net HR Requirement
The net human resource
requirement is the difference
between the total human resource
demand and the human resource
supply forecast taking into account
the anticipated change.
Anticipated change include
turnover analysis
January 22, 2024

Cont’d
 Turnover analysis is the analysis of
the employees leaving the
organizations for several reasons
including retirement, disabilities,
resignation, quit, disabilities and
deaths.
January 22, 2024

Cont’d
 After estimating human resource
demand and supply for a future
period the net requirement
situation can be one of:
• Shortages
• Surplus
• Balanced
 Each situation requires a different
set of responses.
January 22, 2024

Surplus of human resource
 Supply exceeds the labor demand.
 The reasons for surplus human
resource can be:
• Company contraction,
• Over employment
• Poor human resource planning
(Over-employment).
January 22, 2024

3.4. Action Plan
Action Plan involves managing the
net manpower requirement- the
surpluses or shortages
Action plan for surplus include:
• Freeze hiring
• Reducing the number of hours
worked
• Do not replace those who left
January 22, 2024

Cont’d
• Reduce overtime work
• Offer early retirement incentives
• Reduce outsourced work
• Expand operations
• Lay offs
January 22, 2024

Shortage of human resource
 In this scenario, the firm will need
more workers than will be
available.
 The reasons for shortages can be:
• Expansion of the company and
its jobs
• Poor human resource planning
(Underemployment)
• Turnover January 22, 2024

Cont’d
Action Plan for shortages include:
• Training or retraining existing workers,
• Grooming current employees to take
over vacant positions (succession
planning), promoting, transferring from
within,
• Recruiting and hiring new permanent
employees,
• Subcontracting part of the work to
other firms,
January 22, 2024

Cont’d
• Hiring part-timers or temporary
workers,
• Paying overtime to existing
employees
• Offer incentives to postpone
retirement
• Rehire retirees part-time
• Redesign job processes so fewer
employees are needed
• Reduce operation January 22, 2024

Chapter 4
Employee Recruitment,
Selection, Placement &
Induction/Orientation
January 22, 2024

Chapter Outline
 After completing this part,
participants will be able to
understand:
1. Recruitment
2. Selection
3. Placement & Induction
January 22, 2024

1. Recruitment
1.1. Definition
• Recruitment is the process of
reaching out and attempting to attract
potential and qualified job candidates
for a particular job
• To avoid costs, the recruiting effort
should be targeted solely at
applicants who have the basic
qualifications for the job.
January 22, 2024

Cont’d
1.3 Sources of Recruitment
• Sources of recruitment are the places,
agencies and institutions, recruiters go to
seek potential and qualified candidates
that will fill the vacant jobs.
• There are two practical sources from
which recruiters seek potential candidates
to fill job needs-internal source and
external source.
January 22, 2024

Cont’d
 Internal Source
• Internal source recruitment is
recruiting from within the organization
(in-house)
• Many organizations have internal
recruitment policy. Unions require
internal source
• Internal recruitment is usually done
through promotion and transfer. The
way in which internal applicants are
located is often through job posting
January 22, 2024

Cont’d
 Transfer: Is moving people to
positions that are similar and equal in
status usually horizontal
 Promotion: Moving people to higher
level position with higher status
usually vertical
January 22, 2024

Cont’d
 External Sources
 External source is recruiting from outside
the organization.
• Locating applicants from outside the
organization has many more options
• The entire labor market is a potential
source.
January 22, 2024

Cont’d
External Sources and Methods of
Recruitment
Sources
• Employee referral programs
• Walk-ins
• Other companies
• Employment agencies
• Temporary help agencies
• Trade associations and Unions
• Schools
• Foreign nationals January 22, 2024

Cont’d
Methods
• Radio and Television
• Newspapers and Journals
• Computerized services
• Acquisitions and Mergers
• Work flow management
• Online recruitment
January 22, 2024

Cont’d
 Other Methods: There are a few other
ways of finding the right employees.
These include people you meet at
conferences, seminars and trade
shows.
 You can attract them by either setting
up your own recruitment booth or
through informal meetings.
January 22, 2024

Cont’d
 How Many to Recruit?
 Organizations recruit more than
what they employ because some of
the recruits may be unqualified,
disinterested or both.
 Yield ratio will help to determine
how many to recruit.
January 22, 2024

Cont’d
 Recruiting Yield Pyramid
January 22, 2024
50
100
150
200
1,200
New hires
Offers made (2:1)
Candidates interviewed
(3:2)
Leads generated (6:1)
Candidates Invited
(4:3)

Cont’d
Internal Source Advantages and
Disadvantages
January 22, 2024

Cont’d
External Source Advantages and
Disadvantages
January 22, 2024

Cont’d
1.4 Steps in Recruitment
1. Job requisition:
 The first essential step is job requisition,
which gives the recruiting agency
information regarding each job.
 Job requisition determines the job scope,
function, responsibilities, and
relationships.
 This is done through job description and
job specification both of which are
developed as a result of job analysis.
January 22, 2024

Cont’d
2. Designing application form:
 Application form must be designed
as per job description and
specification, which will enable
managers to procure required
information from the applicant.
 Application forms need to be incise
and complete in giving the required
information.
January 22, 2024

Cont’d
3. Advertisement:
 The recruiting agency notifies
vacancies through well-articulated
advertisement.
 It could do this through different
media such as organizational
website, TV, newspapers, trade or
professional journals, notice
boards in field offices, and
employment job centers. January 22, 2024

Cont’d
 The choice depends on the positions for
which organizations are recruiting.
 For example, the local newspaper is
usually the best for blue-collar, clerical and
administrative employees.
 For specialized employees such as middle
and senior managers, website and/or
professional journals can be good media.
January 22, 2024

Cont’d
Conduct Realistic Approach to
Recruitment
• A realistic approach to recruitment deals
with providing an accurate information
about the job and the organization to job
candidates
• Do not inflate the expectation of the
candidate beyond what the actual that
your organization can offer
January 22, 2024

Cont’d
 When the candidate discovers the
actual is less than the expectations
that you have created during the
recruitment, the candidate may
leave your organization, which
results in a great loss to the
company in terms of effort and
cost.
January 22, 2024

Cont’d
Evaluate the Recruitment
• Evaluation of the success of
recruitment is based whether the
candidates attracted are fit for
selection.
• If the selection process is fed
with sufficient qualified
candidates then one can say that
the recruitment was successful
January 22, 2024

2. Selection
 Selection is the process of deciding which
candidate, out of the pool of applicants
developed in recruitment, has the abilities,
skills, and characteristics most closely
matching job demands.
 Series of steps are used for selection
decision.
 The selection philosophy is either to
screen out the unqualified candidate at
each step or to screen in the qualified
ones.
January 22, 2024

Cont’d
2.1 Why Select the Right Person?
• Customers will receive the right
quality service within the right time
and get satisfied and delighted.
• Fellow workers will receive a
cooperative and compatible service
and satisfied and delighted to work
with
• Fellow workers will be happy to work
and stay at their organization
January 22, 2024

Cont’d
• Superiors (supervisors) will be
satisfied and delighted to work with
• There will be cooperation and
harmony among workers which will
result in positive synergy
• The organization will have a good
image
• The organization will achieve its goals
and mission efficiently and effectively
• The company will grow, develop and
become prosperous January 22, 2024

Cont’d
2.2. Consequences of Poor
Selection Decision
• Increased induction, training,
development and performance
management costs
• Dissatisfaction of customers because
of poor service
• Frustrations for, or loss of, other key
staff that have to work with the new
employee
January 22, 2024

Cont’d
• Harm the new incumbent
(dislocation, lay off, dismissal
etc.,)
• Impaired image and reputation
for the company
January 22, 2024

Cont’d
2.3. The Selection Process
January 22, 2024
Prelimina
ry
Screenin
g
Medical
Test
Intervie
ws
Referen
ce
Tests
Selection
Information
Criteria
Applicati
on &
Resume

Cont’d
Selection involves the
following Steps:
1. Scrutiny of Applications:
 This is a process of taking out less
desirable candidates.
 If the number of applicants is large, some
criteria may be designed to shortlist and
keep the number of candidates to a
manageable size
January 22, 2024

Cont’d
 The company usually designs an
application form called Application
Blank that will be filled by the
applicant.
• Applicants submit application
(Application blank)
• Applicants also submit
resume/curriculum vitae or bio data,
an information document designed
and written by the applicant
January 22, 2024

Cont’d
• The information obtained from the application
and resume is generally used as a basis for
further exploration of the applicant's
background.
• Applicants can supply elaborated and
attractive resumes.
• It is useful to ask applicants to sign that the
statement that they have made is correct and
that he or she accepts the employer's right to
terminate the candidate's employment if any of
the information is subsequently found to be
false.
January 22, 2024

Cont’d
2. Testing:
 Some examples of employment testing
are aptitude test, performance test, and
personality test.
 Aptitude test attempts to measure a
person’s ability to learn concepts and to
master physical skills.
January 22, 2024

Cont’d
 The following tests are usually applied in
the selection process:
• Personality Test
• Achievement Test
• Aptitude Test
• Intelligence Test
• Dexterity Test: Disposition (
tendency)
January 22, 2024

Cont’d
 Different jobs require different traits,
temperament and emotion.
 For example, for supervisory job,
emotional stability is important.
January 22, 2024

Cont’d
3. Interview:
 It provides opportunity managers to verify
information on hand and to find out more
about the applicant’s interests, aspirations,
and expectations.
 In addition, it will provide opportunity to share
information about the company, the job and
its environmental condition.
 Hence, the aim is to have a two-way
communication that is mutually beneficial.
 Interview could be structured or unstructured.
January 22, 2024

Cont’d
Structured interview:
 Interview questions are predetermined
before the interview takes place.
 It applies a series of job-related questions
with predetermined answers consistently
across all interviews for a particular job.
January 22, 2024

Cont’d
Structured interview advantages:
 The content of a structured interview is, by
design, limited to job-related factors.
 The questions asked are consistent
across all interviewees.
 All responses are scored the same way.
January 22, 2024

Cont’d
Unstructured interview
 Interview questions are not
predetermined before the interview takes
place.
◦ Questions are raised during the
interview session.
January 22, 2024

Cont’d
The unstructured (non-directive) interview
Advantages:
• Allows the applicant the maximum amount of
freedom in determining the course of the
discussion.
• The interviewers ask broad and open
questions.
• Permits applicants to talk freely with minimum
of interruption.
• Helps to reduce the possibility of legal charges
of unfair discrimination.
January 22, 2024

Cont’d
Guidelines for Employment Interviews:
 Establish an interview plan
 Establish and maintain support
 Be an active listener
 Pay attention to non-verbal clues
 Provide information honestly
 Use questions effectively
 Separate facts from inferences
 Recognize biases
 Control interview
 Standardize the questions
January 22, 2024

Cont’d
4. Reference checking (background
investigations)
• Reference checking provides the opportunity
to question individuals, who either have
worked with the applicant or know them in
some other capacity, about their suitability for
the role and to match them against the
selection criteria.
• By contacting the applicant’s current or
previous managers or co-workers, you are
making sure the applicant has the skills and
experience listed on their application and
resume.
January 22, 2024

Cont’d
 Reference checks are important since
research shows that about one-third of
all applicants are creative with or lie
about their employment history.
 You want to make sure the person will
not be a liability to you and your clients
if they claim to have technical expertise
that they do not in fact possess.
January 22, 2024

Cont’d
5. Physical examination
 Prior to tendering a job offer, some
organizations require potential employees to
take a physical examination for the purpose
of:
• Preventing insurance claim for illness or
injuries that occurred prior to employment to
the company.
• Detecting any communicable diseases.
• Certifying that the person can physically
perform the work.
January 22, 2024

Cont’d
 However, physical requirements should be
clearly indicated in the job description and
specification, which otherwise the
company may be accused of
discrimination toward handicapped
workers.
January 22, 2024

Cont’d
6. Communication
 It is a process of informing the result to an
applicant(s) who has/have been selected
and offered a job by the management.
January 22, 2024

Cont’d
2.4. Validity and Reliability of Selection
Instruments
 Selection instruments such as tests and
interviews must be valid and reliable.
 Tests and interviews need to predict
success on a job if those tests are used
to make the decisions to hire.
January 22, 2024

Cont’d
Validity:
 Tests and interviews are supposed to
discover and predict the ability to do the
job required.
 If a potential candidate is interviewed or
tested and scores ‘A’ he must also score
‘A’ in his job performance.
 Concurrent method and predictive
method can be used to evaluate the
validity.
January 22, 2024

Cont’d
◦ Concurrent validation: administer the
tests to employees presently on the job.
You then would compare their test
scores with their current performance.
◦ Predictive validation: the test is
administered to applicants before they
are hired. After they have been on the
job for some time, you measure their
performance and compare it to their
earlier tests.
January 22, 2024

Cont’d
Reliability:
 The test should yield consistent scores
when a person takes the same test on two
or more different occasions. Test re-test
method and equivalent-half helps to test
the reliability
 Test-retest Method: If for example a
person scores 70% on a test administered
on Monday and 90% on Tuesday, people
would not have much faith in the test.
January 22, 2024

3. Placement, Induction/Orientation
Placement:
 Placement is the process of assigning a
selected applicant to the job for which
he/she applied for.
Induction/Orientation:
 It is the process of introducing the new
employee to the organization, to his job,
to colleagues and superiors to bring
him/her into the mainstream of the
organization as quickly as possible.
January 22, 2024

Cont’d
 A large number of new starters
resign in the first few weeks of their
employment because of lack of
appropriate induction.
January 22, 2024

Cont’d
 The typical components of a standard
induction program which can run for
hours, days or even weeks is as follows:
• The organization, its history,
development, management and
activity.
• Personnel policies.
• Employee benefits.
• Physical facilities in the work place.
• An outline of the different jobs and
work entailed in the organization.
January 22, 2024

Cont’d
• Health and safety measures.
• Social interaction with other
employees.
• Physical orientation to the work place
 Indeed, secondary, tertiary or follow-up
induction programs are used by many
organizations to ensure all the information
they wish to impart is properly disclosed to
employees over a period of time.
January 22, 2024

Chapter Five
Training & Development
(T&D)
January 22, 2024

Discussion Session
Discuss the difference and
Similarity between
Training & Development
January 22, 2024

Chapter Outline
 After completing this part,
participants will be able to
understand:
1. T&D Definition
2. T&D Purpose
3. The Training Process
4. Training & development
differences
5. Career development
January 22, 2024

1. Training & Development Definitions
Training:
 It focuses on providing employees with
specific skills which help correct
deficiencies in their performance.
 Training focus is on the current job, on
how to do the job for which they were
hired.
 The scope is the individual-operational
employees.
January 22, 2024

Cont’d
Development:
 Development is an effort to provide
employees with the abilities the
organization will need in the future.
 The focus is the organization-managerial
employees
January 22, 2024

2. The Purpose of Training and Development
• Creating a pool of readily available and
adequate replacements for personnel who
may leave or move up in the organization
• Enhancing the company's ability to adopt and
use advances in technology because of a
sufficiently knowledgeable staff.
• Building a more efficient, effective and highly
motivated team, which enhances the
company's competitive position and improves
employee morale.
January 22, 2024

Cont’d
• Ensuring adequate human resources
for expansion into new programs
 Specific benefits from training and
developing its workers, include:
• Increased productivity
• Reduced employee turnover
• Increased efficiency resulting in
financial gains
• Decreased need for supervision
January 22, 2024

3. The Training Process
1. Training needs assessment &
training objectives
2. Developing training Program
3. Selecting trainees and trainers
4. Selecting the training Method
5. Conducting the training
6. Training evaluation
January 22, 2024

Cont’d
3.1 Training Need Assessment
 The need for training and development is
determined by employee’s performance
deficiency, computed as follows:
◦ Training and development need =
Standard performance – Actual
performance.
 Managers can identify training needs by
considering three sources:
January 22, 2024

Cont’d
◦ Organization wide sources
• Grievances, observation, Exit Interviews,
Waste/Scrap,
• Accidents, complaints, Training
observation, Equipment use
◦ Task Analysis Sources
• Job Requirements = Employee KSAs
• Job Description Requirements = Job
Specifications
January 22, 2024

Cont’d
◦ Individual Employee Sources
• Tests, Records, Assessment
Centers, Questionnaires,
Performance Appraisals, attitude
surveys, role playing results.
January 22, 2024

Cont’d
3.2. Developing Training Objectives
& Program
 Training objectives and priorities
are set to close the gap.
 Objectives for training can be set in
any area by using one the following
four dimensions:
January 22, 2024

Cont’d
• Quantity of work resulting from
training.
• Quality of work after training (eg.
cost of rework, scrap loss).
• Timeliness of work after training
(schedule meeting).
• Cost savings as a result of
training.
January 22, 2024

Cont’d
3.3. Selection of Trainees and
Trainers
• Employees who must be trained are
those whose deficiency has been
discovered through the personal
training identification in the training
need identification.
• It is also important that employees be
motivated by the training experience.
• Trainers need to have the ability to
train the skills that are designed in the
program. January 22, 2024

Cont’d
3.4 Determine the Types of Training
 On the Job Training (OJT): on the- job
training approach, the trainee learns in the
actual work setting, usually under the
guidance of an experienced worker,
supervisor, or trainer.
Advantages:
• Learning takes place through doing the actual
job
• Little problem of transferee of knowledge learnt
elsewhere
• Reduces cost of hiring outside trainers
January 22, 2024

Cont’d
Disadvantages:
 Errors and damage to equipment that
occur when a trainee is on the job may
prove costly.
 Trainees might be excellent in terms of
their skills but inadequate at transferring
their knowledge to others.
January 22, 2024

Cont’d
Off-the-job training:
 Training is conducted outside the job
environment
 Common examples of off-the-job training
are formal courses, simulations, and role-
playing exercises in a classroom setting.
Advantages:
 It gives employees extended and
uninterrupted periods of study.
January 22, 2024

Cont’d
 A classroom setting may be more conducive
to learning retention because it avoids the
distractions and interruptions that commonly
occurring an OJT environment.
Disadvantages:
 What is learned may not transfer back to the
job. (Vestibule training is used to minimize
the problem of transfer)
 If an employees view off-the-job training as
an opportunity to enjoy some time away from
work, not much learning is likely to take
place.
January 22, 2024

Cont’d
3.5 Conducting Training
 Having planned the training program
properly, the training should be administered
to the selected employees.
 It is important to follow through to make sure
the goals are being met.
 Questions to consider include:
- Location - Comfort
- Facilities - Equipment
- Accessibility - Timing
January 22, 2024

Cont’d
3.6. The Evaluation Phase
 In the evaluation phase of the training
process, the effectiveness of the training
program is assessed.
 The training should be judged on how well
it addressed the needs it was designed to
address.
January 22, 2024

Cont’d
 Evaluation of the training includes:
• Participants’ reaction to the training at
the time of the training
• Participants’ learning of the content of
the training
• Participants’ use of their new skills
and knowledge back on the job.
January 22, 2024

4. Training & development Differences
 Development can be thought of as
growing capabilities that go beyond
those required by the current job; it
represents efforts to improve
employee’s ability to handle a variety
of assignments.
 Development is beneficial to both the
organization and the individuals
January 22, 2024

Cont’d
Training
January 22, 2024
Development
Focus
Learn specific
behaviors and
actions; demonstrate
techniques and
processes
Understand information
concepts and context;
develop judgment;
expand capacities for
assignments
Time
Frame
Shorter-term Longer-term
Effectiven
ess
measures
Performance
appraisals;
cost/benefit
analysis, passing
tests; or
certification
Qualified people
available when
needed; promotion
from within possible;
HR-based
competitive

Cont’d
Assessment Centers:
 Development program uses
assessment centers.
 In a typical assessment-center, a
potential manager spends two or
three days away from the job,
performing many activities.
January 22, 2024

Cont’d
 These activities may include role playing,
pencil-and-paper tests, cases, leaderless
group discussion, management games,
peer evaluation, and in-basket exercises,
in which the trainee handles typical
problems coming across a manger’s
desks.
 For the most part, the exercises are
samples of managerial situations that
require the use of managerial skills and
behaviors.
January 22, 2024

Cont’d
 During the exercises, participants
are observed by several specially
trained judges.
 Assessment centers are seen as
an excellent means for determining
managerial talent.
January 22, 2024

Discussion Session
 Discuss the difference between job
and career.
January 22, 2024

 Career planning involves assisting
employees in defining their occupational
interests, and preparing for job changes
through human resource development.
• The career changes may entail a
move to a different occupation, a
promotion within an existing
occupation, or changing the tasks in
an existing occupation.
January 22, 2024

 It can be used to describe the phase of
career planning in which employees are
engaged in various human resource
development methods, such as taking
college courses to qualify them for
career advancement, or other career
change.
January 22, 2024

The principal purposes of career
planning are:
 Employee job satisfaction: to influence
employee intrinsic and extrinsic job
satisfaction in a positive manner.
 Meet organizational needs for human
resources: to help the organization
prepare for and meet its future human
resource needs.
January 22, 2024

Chapter Six
Performance Appraisal
(PA)
January 22, 2024

Chapter Outline
 After completing this part, participants will
be able to understand:
1. Performance Appraisal
definition
2. Purpose of Performance
Appraisal
3. Performance Appraisal Steps
4. Problems with Performance
Appraisal
5. Performance Appraisal Methods
January 22, 2024

1. Performance Appraisal Definition
 Performance Appraisal is a
process of determining how well an
employee is doing his/her job.
 It is the evaluation of employees’
current and potential levels of
performance to allow managers to
make objective human resources
decisions.
January 22, 2024

Cont’d
• Performance appraisal has the following main
objectives:
 To improve employee performance in the
present job
 To prepare employees for future opportunities
that may arise in the organization
 To provide a record of employee performance
that can be used as a basis for future
management decisions
 Performance appraisal is a continuous process.
It is one of the most difficult and
important part of supervision.
January 22, 2024

2. Purposes of Performance Appraisal
 Feedback to employees: It
provides feedback to employees
about the quality and quantity of
job performance.
 Self-development: Individuals
learn about their strengths and
weaknesses as seen by other
people and can influence self-
improvement programs.
January 22, 2024

Cont’d
 Reward systems: It can be used to
administer merit based compensation
systems.
 Personnel decisions: Decisions such as
promotions, transfers and terminations
are made based on performance
appraisal.
 Training and development: It can help
managers identify areas in which
employees lack critical skills.
January 22, 2024

3. Performance Appraisal Steps
Three Step Process:
1. Set expectations/Standards
2. On-going tracking and feedback
3. Review progress (annual
appraisal)
January 22, 2024

Cont’d
3.1. Set Expectations/Standards
Clear performance goals that the
employee is expected to perform
during the period must be set and
agreement must be reached.
• What the position holder will do
and how they will do it.
January 22, 2024

Cont’d
• Should be SMART
 Specific
 Measurable
 Achievable
 Realistic
 Timely (contain a measurement
of time)
• Should be aligned with the goals
and objectives of the organization
(strategy), department or work
unit.
January 22, 2024

Cont’d
3.2. Ongoing Tracking and Feedback
◦ Managers/Supervisor should meet
with employees on continuous base:
 To discuss progress towards
established goals
 Identify areas for
improvement/development
 Discuss modifications to goals
 Coach on how to sustain progress
or improve shared process
January 22, 2024

Cont’d
Employee has responsibility for
tracking and monitoring own progress.
Supervisor should identify sources of
information. Possibilities include: e-
mails, financial reports, customers
feedback, participation on internal and
external committees, participation in
professional organizations.
January 22, 2024

Cont’d
3.3. Providing Feedback
 Feedback is best given in a private
meeting between the employee and
immediate supervisor.
Discussion should focus on the facts:
• Assessed level of performance, how
and why the assessment was made,
and how the employee’s
performance can be improved in the
future.
January 22, 2024

Cont’d
 Maintain or enhance self-esteem
 Listen and respond with empathy
 Ask for help and encourage involvement
 Share thoughts, feelings and rationale (to
build trust)
 Provide support without removing
responsibility (to build ownership)
January 22, 2024

4. Problems with Performance Appraisal
 Appraisers commit errors during appraisal.
Errors include:
• Leniency: A tendency to rate an
employee at the positive (high) end.
• Central tendency: Rating employees
in the middle of the scale.
• Halo Effect: Rating an employee only
on one attribute
January 22, 2024

Cont’d
• Personal Biases (prejudices): rate on
behaviors that conform to their biases
(appearance, social status, dress,
race, sex etc.)
• Expectancy (Pygmalion Effect)
• First impression
January 22, 2024

5. Appraisal Methods
1.Ranking methods
2.Graphic rating scale
3.Behaviorally anchored Rating
Scale
4.Management By Objectives
(MBO)
January 22, 2024

Cont’d
5.1. Ranking Methods
 Ranks one employee by
comparing the employee against
every other employees.
• Simple ranking technique
• Paired comparison technique
January 22, 2024

Cont’d
 Ranking method: Drawbacks
• Difficult to do with large numbers of
employees.
• Difficult to make comparisons across
work groups.
• Employees are ranked only on overall
performance.
• Do not provide useful information for
employee feedback.
January 22, 2024

Cont’d
5.2. Graphic rating scale
 Graphic rating Scale compares
each employee with a fixed
standard.
 Graphic rating scales consist of
job performance dimensions to
be rated on a standard scale.
January 22, 2024

Cont’d
Dimension: Punctuality
This teller is always on time for work and promptly opens her or his window
scheduled.
Strongly
disagree
1 2 3 4
Disagree Agree Strongly
agree
Dimension: Congeniality
This teller always greets his or her customers warmly and treats them with
respect and dignity.
Strongly
disagree
1 2 3 4
agree
Dimension: Accuracy
This teller is always accurate in her or his work.
Strongly
disagree
1 2 3 4
agree
January 22, 2024

Cont’d
5.3. Behaviorally anchored Rating
Scale
 Behaviorally-anchored rating scale
(BARS) is a sophisticated method
in which supervisors construct a
rating scale where each point on
the scale is associated with
behavioral anchors.
January 22, 2024

Cont’d
Job: Specialty store manager
Dimension: Inventory control
Always orders in the right quantities and at the right time
Almost always orders at the right time but occasionally orders too much
or too little of a particular item
Usually orders at the right time and almost always in the right quantities
Often orders in the right quantities and at the right time
Occasionally orders at the right time but usually not in the right
quantities
Occasionally orders in the right quantities but usually not at the right
time
Never orders in the right quantities or at the right time
7
6
5
4
3
2
1
January 22, 2024

Cont’d
5.4. Management by Objectives
(MBO)
 A process whereby the superior and
subordinate managers of an organization
jointly identify its common goals, define
each individual's major areas of
responsibility in terms of the results
expected of him, and use these measures
as guides for operating the unit and
assessing the contribution of each of its
members.
January 22, 2024

Cont’d
The process of MBO
• Joint goal setting
• Periodic evaluation and
Review
• Giving feedback
January 22, 2024

Cont’d
MBO Benefits:
• Subordinates participate in
setting their own objectives
• Accomplishment of objectives will
motivate subordinates
• By working closer with the
subordinates the supervisor will:
January 22, 2024

Cont’d
 Set realistic objectives
 Know the strengths and weaknesses
of subordinates
 Know subordinates requirement such
as resources: human, material,
finance, information etc.
 Make objective appraisal.
January 22, 2024

Cont’d
MBO Drawbacks:
• MBO program takes a great deal of
time, energy and form- completing on
the part of managers.
• Difficult to use for setting non-
quantifiable objectives
• Superiors push for higher objectives
• Subordinates may set lenient
objectives that can be met easily or
unachievable higher goals just to
please the superior January 22, 2024

6. Who should Undertake Performance
Appraisal?
• Immediate superior
• Subordinate
• Peers
• Customers
• Self appraisal
• 3600 appraisal
January 22, 2024

Cont’d
“360 degree” Feedback
“360 degree” feedback, in which
employees are evaluated by
everyone around them, provides a
richer array of performance
information on which to base an
appraisal.
January 22, 2024

Chapter Seven
Employee Compensation
January 22, 2024

1. Definition
 Employee compensation includes all
forms of pay or rewards going to
employees as a result of their
employment.
 Employee compensation has two
components: direct financial payments
(wages, salaries, incentives, commissions,
and bonuses) and indirect financial
payments (fringe benefits) like employee
paid insurance and vacations.
January 22, 2024

Cont’d
 Employees need to be rewarded for the
service they provide to an organization.
 The organization, on the other hand, has
the obligation to reward employees fairly
according to the contribution they provide
to it.
 Organizational reward includes, both
intrinsic and extrinsic, that are received as
a result of employment by the
organization.
January 22, 2024

2. Importance of Compensation
 The compensation policy of an
organization should equitably serve both
employer and employees.
Importance to Employees:
 It is the primary (and often the only)
source of income for employees and their
family.
 It is a fair reward
 It determines employees’ social status.
January 22, 2024

Cont’d
Importance to Employers:
 To attract capable employees to
the organization
 To motivate them towards superior
performance level
 To retain their services for an
extended period of time
January 22, 2024

3. Factors Affecting Compensation
 Government
 Cost of Living
 Comparable wage rates
 Market Conditions
 Ability to Pay
January 22, 2024

Cont’d
Government:
 Government rules, regulations,
executive orders, and laws have
their influence on an organization’s
compensation policy.
 Every government provides laws
for compensation in areas like,
minimum wage rate, equal pay
provisions to avoid pay differentials
based on sex, race, religion, etc.
January 22, 2024

Cont’d
Cost of Living
 Cost of living as measured in terms
of consumer price index may affect
the organization’s compensation
policy as it tries to adjust its
employees’ earning to the rate of
inflation.
 This process is called cost of living
adjustment (COLA).
January 22, 2024

Cont’d
Comparable wage rates
 The wage pattern in the industry and
community could have an impact on the
compensation policies and practices of
organizations.
 Comparing wage and salary rates in given
areas may help in ensuring that the
organization is offering a salary that is not
substantially higher or lower than those
paid by others in the same area.
January 22, 2024

Cont’d
Market Conditions
 Regardless of other factors
involved, the supply and demand
relationship in the labor market will
determine the wage and salary
level in organizations.
January 22, 2024

Cont’d
Ability to Pay
 Regardless of other factors, wage
and salary rates are ultimately
dependent on the employer’s
ability to pay.
 Ability to pay, in tern, is dependent
on how well the organization is
functioning and its ability to
continue earning revenues.
January 22, 2024

4. Establishing Equitable Payment
Structure
 The primary objective of any base
wage and salary system is to
establish a structured system for
the equitable payment of
employees, depending on their job
and their level of performance in
their job.
January 22, 2024

Cont’d
 There are several policy issues
that need to be addressed for
establishing a fair and equitable
compensation system.
 Most based wage and salary
systems establish pay ranges for
certain jobs based on the relative
worth of a job to the organization
and wage & salary survey.
January 22, 2024

4.1. Job Evaluation
 It is a systematic determination of
the value of each job in relation to
other jobs in the organization.
 If done properly the relative value
of the jobs is reflected in the
relative wage rate for the jobs.
January 22, 2024

Cont’d
It Involves:
 Enumeration of the requirements of
a job
 The job’s contribution to the
organization
 Classifying it according to
importance
January 22, 2024

Cont’d
Steps in Job Evaluation
I. Gather information about the jobs
being evaluated from job analysis
II. Determining factors that are to be used
in determining the worth of different
jobs to the organization like education,
skill, initiative, responsibility, working
conditions, physical and mental effort,
experience, etc.
January 22, 2024

Cont’d
III. Determine the method of evaluation that
will use the chosen factors for evaluating
the relative worth of the different jobs.
 The most common kinds of job evaluation
methods include point method, factor
comparison, job classification and job
ranking.
 The first two are quantitative methods and
the remaining are qualitative.
IV. Grading the jobs according to their
importance.
January 22, 2024

Cont’d
Problems in Job Evaluation
 The worth of all occupations cannot be
precisely measured with the same
yardstick (standard)
 It is difficult to measure the worth of
scientific, technical, professional, and
managerial jobs.
 It is difficult to separate the individual’s
contribution from the job being evaluated
January 22, 2024

4.2. Wage and Salary Survey
 It is used to collect comparative
information on the policies, practices, and
methods of wage payment from selected
organizations in a given geographic
location or a particular type of industry.
 Conducting wage and salary survey is
useful to ensure external equity by
providing information about the labor
market
January 22, 2024

Cont’d
 In order for the survey to be effective, it is
essential to identify the jobs to be
surveyed and also the organizations and
their geographic location.
Some of the issues usually
included in the survey
include:
January 22, 2024

Cont’d
 Length of
workday
 Starting wage
rates
 Base wage rates
 Overtime Pay
 Vacation and
holiday practices
 Pay ranges,
Incentive plans,
etc.
January 22, 2024

5. Employee Benefits (Fringe
Benefit)
 It refers to benefits given to
employees in addition to salary or
wages.
 They constitute significant portion
of the employees pay.
 Unlike wages and salaries, benefits
are not usually related to employee
performance.
January 22, 2024

Cont’d
Broadly classified, there are
two types of fringe benefits:
1. Time-off pay
2. Non-pay benefits
January 22, 2024

Cont’d
1. Time-off Pay:
 Time-off pay are payments for
the time not worked and include
paid vacations, paid holidays,
paid sick leaves, pension
programs, rest periods, etc.
January 22, 2024

Cont’d
 Paid Vacations: Organizations provide
employees a certain number of paid
vacation days in a year.
 The number of days may vary according
to how long an employee has worked for
an organization.
 Usually, paid vacation times increase with
seniority.
 Sick Leaves: Providing employees with
pay for days not worked because of
illness. January 22, 2024

Cont’d
 Pension Programs: It represents
a fixed payment other than
wages, made regularly to former
employees or their surviving
dependents.
January 22, 2024

Cont’d
2. Non-pay Benefits:
 These are benefits not paid in cash
but include expenditures on items
such as medical services,
transportation accommodation,
insurance, cafeteria services,
education programs, child care
services, and others.
January 22, 2024

Cont’d
 These benefits can be classified as
mandated (legally required)
benefits and discretionary
(Voluntary) benefits.
 However, the categorization of
these benefits might have a bit
differences from country to country.
January 22, 2024

Cont’d
Mandated
Benefits
Voluntary
Benefits
 Social security
 Unemployment
compensation
 Worker’s
compensation
 Family and
Medical Leave
 Health care
 Life Insurance
 Retirement plans
 Payment for time
not worked
 Employee Stock
Option Plans
(ESOP)
etc
January 22, 2024

Employee Motivation
January 22, 2024
Willingness to
Perform
Capacity to
Perform
Opportunity to
Perform
Job
Performan
ce

Chapter Eight
Integration & Maintenance
January 22, 2024

1. Labor Relations: Definition
 It is a continuous relationship between a
defined group of employees (represented
by a union or association) and an
employer. It is also known as employee
relations.
 The relationship includes the initial
recognition of the rights and responsibilities
of union and management, the negotiations
of a written contract concerning wages,
hours, and other conditions of employment,
and the interpretation and administration of
this contract over its period coverage.
January 22, 2024

Cont’d
 There are three parties in employee
relations: the employees, the employer,
and the government.
 Employees are represented by labor
union.
 A labor union is a group of employees who
have joined together to achieve present
and future goals that deal with
employment condition.
 The role of the government in labor
relations is developing the framework of
the employee relations through laws (Eg.
January 22, 2024

Why do employees join unions?
The major reasons include:
 Job Security
 Socialization
 Safety & Health
 Communication Link
 Fair & Equitable Compensation
January 22, 2024

2. Collective Bargaining
 It is the process through which
representatives of management and the
union meet to negotiate a labor
agreement.
 Under law, both management and the
union are required to negotiate wages,
hours, and terms and conditions of
employment “in good faith”.
 Good faith bargaining means that both
parties are making a reasonable effort
during communication and negotiation to
arrive at an agreement. January 22, 2024

Cont’d
The process of collective
bargaining includes three phases:
1. Preparation,
2. Negotiation, and
3. Administration of the contract.
January 22, 2024

Cont’d
Preparation:
 Developing offensive or defensive
strategies
 Assess internal and external
environment that may affect the
outcome of the negotiation (legal,
economic, political, and social,
etc.)
 Study the intentions and capacities
of the other party. January 22, 2024

Cont’d
Negotiation:
The most typical
bargaining/negotiating stages
involve:
1. Each side presents its demands (usually
the demands are very far apart in some
issues)
2. Reduction of demands: each side trades
off some of its demands to gain others.
3. Subcommittee studies: the parties form
joint subcommittees to develop
reasonable alternatives. January 22, 2024

Cont’d
4. If they agree, informal settlement is
reached and each group goes back to its
sponsor-union representatives to their
supervisors and members; management
to the top management.
5. If everything is in order, formal
agreement is reached and signed.
January 22, 2024

Cont’d
 If an agreement is not reached by the
parties, a situation called impasse occurs.
 Impasse is a situation in which parties
cannot reach settlement.
 In order to resolve such disagreement, a
“third party” may be involved.
 An intervention by a third party is used to
overcome an impasse, such as mediation,
fact-finding, and arbitration.
January 22, 2024

Cont’d
Administration of the
contract:
It involves the activities necessary
to put the agreed upon contract in
practice including adequate
communication of the agreement to
the concerned parties.
January 22, 2024

3. Grievance Handling: Definition
 Dessler defines grievance as any
factor involving wages, hours, or
conditions of employment that is
used as a complaint against the
employer.
 Beach defines a grievance as “any
dissatisfaction or feeling of injustice
in connection with one’s
employment situation that is
brought to the notice of the
January 22, 2024

Cont’d
 Grievances may arise from various
sources and their seriousness also varies
accordingly.
 Some grievances arise from discipline
cases, seniority problems (including
promotion, transfers, layoffs, etc.) job
evaluation results, work assignments,
benefits, etc.
 As grievance is often a symptom of an
underlying problem, it requires careful
analysis of the situation to prevent
repeated problems from occurring.
January 22, 2024

Cont’d
Grievance Procedure:
 It is an orderly system whereby disputes
between management and
union/employees are resolved in a series
of steps.
 Grievance procedure differs from
organization to organization.
 Some organizations have very simple
procedures involving only two steps while
others may have very long steps before
resolving the problem.
January 22, 2024

4. Disciplinary Action: Definition
 Discipline is a procedure that corrects or
punishes a subordinate because a rule or
procedure has been violated.
 Most contracts agreed by management
and unionized organization provide
management with the right to discipline
workers following set disciplinary
procedures.
 Incompetence, misconduct, and violation
of contracts are some of the areas likely to
initiate a disciplinary action.
January 22, 2024

Cont’d
The most common types of
disciplinary actions include:
 Oral reprimand,
 Loss of privileges,
 Fines layoff,
 Demotion,
 Suspension, and
 Dismissal.
January 22, 2024

Cont’d
A fair discipline process is
based on three prerequisites:
1. Rules & regulations,
2. A System of progressive
penalties, &
3. An appeal process.
January 22, 2024

Cont’d
1. Rules and regulations:
A clear definition of rules and
regulations should be set to help
employees know before hand what
is expected of them while working
in that organization.
January 22, 2024

Cont’d
2. A System of progressive
penalties:
 Penalties may range from oral warning to
written warning to suspension from the job
or to discharge.
 The higher and more frequent the offence
is, the more severe the penalty becomes.
3. Appeal Process:
 In order to ensure the disciplinary action is
fair and equitable, there has to be an
appeal process. January 22, 2024

4.1.Disciplinary process
The disciplinary process may
involve the following steps:
1. Establishing work and behavior rules.
2. Communicating these rules to employees
3. Establishing effective assessment
mechanisms (performance appraisal or
observation)
January 22, 2024

Cont’d
4. Collecting full information on the case
and deciding on the type of penalty.
(Usually based on set policies and
procedures)
5. Administering punishment or motivating
change.
6. Following-up the case.
January 22, 2024

4.2. Disciplinary Action Guidelines
The following major guidelines are
useful in the disciplinary process:
I. Discipline action should be applied
consistently i.e. similar incidents should
get similar treatment.
II. The employee should be adequately
warned of the consequences of his/her
alleged misconduct.
III. Disciplinary action should be taken in
private.
January 22, 2024

Cont’d
IV. Penalty should always carry with it
constructive element. The employee
should be told clearly the reasons for the
action to be taken.
V. Disciplinary action should be taken
promptly in order for the employee to
understand clearly the relationship
between the penalty and the offensive
act.
January 22, 2024

Cont’d
VI. As much as possible, disciplinary action
should be applied by the immediate
supervisor.
VII. After taking the disciplinary action, an
attempt should be made to assume a
normal attitude toward the employee.
January 22, 2024

Chapter Nine
Promotions, Transfers &
Separation
January 22, 2024

1. Promotion: Definition
January 22, 2024

Cont’d
• Advancement within a organization is
ordinarily labeled as ‘Promotion’.
• It is an upward movement of an employee
from current job to another that is higher
in pay, responsibility, status and
organizational level.
• A mere shifting of an employee to a
different job which has better working
hours, better pleasant working conditions
does not imply promotion.
• It is a vertical movement in rank and
responsibility. January 22, 2024

Cont’d
• According to E.B. Flippo
“promotion involves a change from
one job to another that is better in
the terms of status and
responsibilities”.
• According to Scott and Spreigal: “A
Promotion is the transfer of an
employee to a job that pays more
money or that enjoys some
preferred status”. January 22, 2024

Cont’d
Examples of promotion:
 HR Assistant receives a promotion to HR
Generalist
 HR Generalist receives a promotion to a
dual role of HR Generalist and Employee
Development Coordinator
 HR Generalist is given a promotion to HR
Manager
 HR Manager is given a promotion to
Manager of Human Resources and
Administration
 HR Manager is promoted to HR Director
January 22, 2024

Purpose of Promotion
 To recognize an employee’s
performance and
commitment/loyalty and motivate
him/her towards better
performance
 To boost the morale and sense of
belonging of employees.
 To retain skilled and talented
employees.
January 22, 2024

Cont’d
 To develop a competent internal
source of employees for higher
level jobs
 To utilize the knowledge and skills
of the employees more effectively.
 To attract suitable and competent
workers for the organization.
January 22, 2024

Types of promotion
Four Major Types:
 Dry Promotion: Where an employee is
promoted to higher position and
responsibility without any increment in
salary
 Vertical Promotion: In this type the
employee is moved to the subsequent
higher level accompanied by greater
power ,responsibility, position and salary
January 22, 2024

Cont’d
 Up gradation: The job is promoted in the
organizational hierarchy. as a result ,the
employees obtain additional salary, higher
responsibility and power.
 Up or Out: In this, person must earn
promotion or search employment
elsewhere.
January 22, 2024

Bases of Promotion
Seniority Merit/Skill
Seniority means
length of recognized
service in an
organization
Seniority means the
calculation of time
from when an
employee has joined
the company and
served for how many
years in the
company.
 Merit means ability to
work .
 It denotes an
individual employee’s
skill, knowledge,
ability, efficiency and
aptitude as measured
from educational,
training and past
record
January 22, 2024

Cont’d
The senior most
person in the lower
grade shall be
promoted as and
when there is an
opening in the higher
position
Seniority is
suggested as the
criteria for promotion
on the plea that there
is a positive
correlation between
 If the merit is adopted
as basis of promotion
then the person in
the lower grade ,no
matter his junior most
in the company, shall
be promoted.
 It encourage all
employee to improve
their efficiency
January 22, 2024

Cont’d
Advantages of the Bases
Easy to measure the
length of service
Labor union generally
emphasis on
seniority.
Security and certainty
is also plus point
Minimize the scope
of grievances and
 It implies the
knowledge, skills and
performance record
of an employee.
 It motivates
competent
employees to work
hard and acquire new
skills.
January 22, 2024

Cont’d:
Advantages of the Bases
Reducing labor
turnover
It provides a
sense of
satisfaction to
senior employees.
 It helps to maintain
the efficiency of
the organization by
recognizing talent
and performance
 It helps to attract
and retain young
and promising
employees in the
organization
January 22, 2024

Cont’d:
Disadvantages of the Bases
 The assumption that
the length of the
service indicates
talent is not valid
because beyond a
certain age a person
may not learn.
 Performance and
potential of an
individual is not
recognized.
 Measuring merit is
not easy, subjective
judgement may
involve.
 Many employee,
particularly labor
unions distrust the
management’s
integrity in judging
merit. January 22, 2024

Cont’d:
Disadvantages of the Bases
 It demotivate and
demoralize the young
employees who are
talented
 Kills the zeal and
interest for self
development
 The concern fails to
attract young and
hardworking
employees
 When younger
employees are
promoted over the
older one, the older
employees may feel
insecure. They may
leave the
organization as well.
January 22, 2024

2. Transfer: Definition
January 22, 2024

Cont’d
 A transfer is a horizontal or lateral
movement of an employee from one job,
section, department, shift plant or position
to another at some other place where
salary, status and responsibility are
usually the same.
January 22, 2024

Cont’d
 Transfer is defined as “a lateral shift
causing movement of individuals from one
position to another usually without
involving any kind of change in duties,
responsibilities, skills needed or
compensation”.
January 22, 2024

Purpose of Transfer
• To meet organizational needs.
• To meet employees own request.
• To utilize services of an employee properly
when he/she is not performing and
management feels he/she may be useful
elsewhere.
• To increase versatility of the employee.
January 22, 2024

Cont’d
• To adjust the workforce.
• To replace new employee by an employee
who has been in the organization on a
certain job for a sufficiently long time.
• To penalize employee or due to avoid
labor union pertaining issues.
January 22, 2024

Policy for Transfer
 The policy must be impartial and known to
each employee.
 The basis of the transfer should be
indicated i.e. based on seniority or skill.
 Decide the rate of pay to be given to the
transferee.
 Intimate the fact of transfer to the person
concerned well in advance.
January 22, 2024

Cont’d
 Should be in writing and duly
communicated to all concerned.
 Locate the authority in some officer who
may initiate and implement transfers.
 Transfer cannot be made frequently and
not for the sake of transfer only.
 Facilities such as leave, special allowance
for shifting, etc. should be clearly
prescribed to the transferee.
January 22, 2024

Types of Transfer
Intradepartmental transfers:
 Within same section of the same
department and effected without the issue
of any transfer order to the employee.
 He/she may be given oral instructions.
However must be informed of such
transfers.
January 22, 2024

Cont’d
Interdepartmental transfers:
 From one department to another are
decided by mutual consultations among
the departmental heads when such
transfers are of the permanent nature or
long duration.
 Written orders signed by the personnel
manager are issued to the employee.
January 22, 2024

Benefits of Transfer
• Increase in productivity and effectiveness
of the organization.
• Greater job satisfaction to employees.
• Stabilize fluctuating job needs.
• Improve employee skills.
• Remedy for wrong placement.
• Improve labor relationships.
January 22, 2024

Cont’d
• Develop employees for future
promotions.
• Avoid monotony and boredom.
January 22, 2024

3. Demotion: Definition
January 22, 2024

Cont’d
 Demotion has been defined as the
assignment of an individual to a job of
lower rank and pay usually involving lower
level of difficulty and responsibility.
 Demotions serve as a useful purpose in
the sense that they keep the employees
alert and alive to their responsibilities and
duties.
January 22, 2024

Cont’d
 Demotion is the antithesis of promotion
where in an employee is demoted to the
post at a lower level.
 Example: a manager may be demoted as
supervisor.
January 22, 2024

Causes of Demotion
 When departments are combined, bosses
are often required to accept lower level
position since jobs are eliminated.
 Inadequacy on the part of the employees
in terms of job performance, attitude and
capability.
 When older employees are unable to
adjust as per change in technology.
 Health or personal reasons.
 Demotion is also used as disciplinary
measure.
January 22, 2024

Demotion Policy
 A clear transparent and set of reasonable
rules should be framed, violations of which
would subject an employee to demotion.
 The information should be clearly
communicated to employees.
 If violations are discovered, there should
be consistency in penalties.
 There should be competent investigation
of any alleged violation.
 There should be a provision for review.
January 22, 2024

Demotion: Salary structure
 The employee’s salary may remain the
same if it is within the range of the lower
class or it may be reduced.
 If the employee’s salary is above the
maximum of the lower grade, then the
salary must be reduced to at least the
maximum of the lower grade.
January 22, 2024

Effects of Demotion
 Demotions have a serious impact on the
need fulfilment.
 There is emotional turmoil, inefficiency
and resignation.
 Hence demotions are made quite
infrequently.
 Many managers prefer to discharge
employees rather than face the problems
arising from demotion.
January 22, 2024

4. Separation: Definition
 Separation means cessation of service
with the organization for one or other
reason.
The employee may be separated from HR
payroll due to:
 Resignation
 Discharge & Dismissal
 Suspension
 Retrenchment or Lay off
January 22, 2024

Cont’d
Resignation:
 Resignation may be put in voluntary by
the employees on the ground of health,
better opportunities elsewhere or
maladjustment with the company policy
and officers or for reasons of marriage.
January 22, 2024

Cont’d
Discharge:
 A discharge involves permanent
separation of an employee from the pay
roll for violation of company rules or for
inadequate reasons.
 Proper procedure of discharge must be
conducted and it should not be an
impulsive act.
 There has to be a written warning for the
same along with discharge letter at the
time of discharge.
 Adequate provision should exist for review
January 22, 2024

Cont’d
Dismissal:
 A dismissal is the termination of services
of an employee by the way of punishment
for some misconduct or for some
unauthorised and prolonged absence from
duty.
Suspension:
 It may be awarded during inquiry is being
conducted. During suspension employee
gets subsistence allowance.
January 22, 2024

Cont’d
Retrenchment or Lay off:
 Permanent termination for economic
reasons of the organization.
 Notice in writing needs to be given some
time a head of separation time to the
employee
January 22, 2024

Chapter Ten
Sexual Harassment in the
Workplace
January 22, 2024

Chapter Outline
 Definition of Sexual & General
Harassment
 Types of Harassment
 You & Your Organization’s
Responsibility
 The Organization’s Policy
 What to Do When Harassment Occurs
January 22, 2024

What is Harassment ?
 Behavior which has the effect of
humiliating, intimidating, or coercing
someone through personal attack.
 Behavior that can cause the recipient to
be embarrassed, uncomfortable and
cause emotional distress.
January 22, 2024

Cont’d
 Harassment is unwelcome conduct which
is taken because of a protected personal
characteristic and which creates an
abusive job environment.
There are three requirements:
 Unwelcome conduct
 Because of protected characteristic
 Hostile/Abusive environment
January 22, 2024

What is Sexual harassment?
 Unwelcome
verbal, visual, or
physical conduct
of a sexual nature
that is severe or
pervasive and
affects working
conditions or
creates a hostile
work environment.
January 22, 2024

Breaking down the definition :
“Conduct”
 Conduct is NOT
sexual harassment
if it is welcome. For
this reason, it is
important to
communicate
(either verbally or in
writing) to the
harasser that the
conduct makes you
uncomfortable and January 22, 2024

“Of a Sexual Nature”
 Verbal/Written:
Comments about clothing,
personal behavior, or a
person’s body; sexual or
sex-based jokes;
requesting sexual favors or
repeatedly asking a person
out; sexual innuendoes;
telling rumors about a
person’s personal or
sexual life; threatening a
person, sending emails or
text messages of a sexual
nature January 22, 2024

Cont’d
 Physical: Assault; impeding or
blocking movement; inappropriate
touching of a person or a person’s
clothing; kissing, hugging, patting,
stroking
 Nonverbal: Looking up and down
a person’s body; derogatory
gestures or facial expressions of a
sexual nature; following a person
 Visual: Posters, drawings,
pictures, screensavers, emails or
text of a sexual nature
January 22, 2024

Of a Non-Sexual Nature
 Non-sexual conduct may also be sexual
harassment if you are harassed because
you are female, rather than male, or
because you are male, rather than female.
 For example, it may be sexual harassment
if you are a woman working as a carpenter
on an all-male job, and you are the only
one whose tools are frequently hidden by
your male co-workers.
January 22, 2024

“Severe or Pervasive”
 The conduct of the harasser must be either
severe or pervasive to be classified as
sexual harassment.
 Although a single unwanted request for a
date or one sexually suggestive comment
might offend you and/or be inappropriate, it
may not be sexual harassment. However, a
number of relatively minor separate
incidents may add up to sexual harassment
if the incidents affect your work
environment.
January 22, 2024

Questions to ask yourself:
 How many times did the
incidents occur?
 How long has the
harassment been going
on?
 How many others have
been sexually harassed?
 Who were witnesses to the
harassment?
January 22, 2024

“Affects working conditions or
creates
a hostile work environment”
 It may be sexual harassment if the
conduct unreasonably interferes with your
work performance or creates an
“intimidating, hostile, or offensive work
environment.”
 For example, it may be sexual harassment
if repeated sexual comments make you so
uncomfortable at work that your
performance suffers or you decline
professional opportunities because it will
put you in contact with the harasser.
January 22, 2024

Types of Sexual Harassment
Two Major Types:
Quid Pro Quo
&
Hostile Environment
January 22, 2024

Quid Pro Quo
 When employment decisions or
expectations are based on an employee’s
willingness to grant or deny sexual favors
or willingness to submit to unwelcome
behavior.
 “This for that”
January 22, 2024

Cont’d
Examples of Quid Pro Quo:
 Demanding sexual favors in exchange for
a promotion or a raise
 Demanding participation by a subordinate
in a religious observance
 Changing job performance expectations
after subordinate refuses repeated
requests for a date
 Disciplining or discharging an employee
who ends a romantic relationship
January 22, 2024

Hostile Environment
 Where verbal or nonverbal behavior in the
workplace focuses on the sexuality of
another person or occurs because of a
person’s gender or other protected
characteristic.
 Where verbal or nonverbal behavior in the
workplace is unwanted or unwelcome.
 Where verbal or nonverbal behavior is
severe or pervasive enough to affect the
person’s work environment.
January 22, 2024

Behaviors that can be unwelcome and/or
sexual in nature
January 22, 2024
Physical
Assault
Touching
Hugging
Kissing
Pinching
Leering
Gesturing
Verbal
• Jokes, remarks, or
questions
• Propositions for sexual
activity
• Pressure for dates
• Obscene language which
is gender specific or
sexual in nature
• Inappropriate comments
about a person’s body
Visual
• Cartoons
• Written
documents
• Drawings
• Computer
images
• Posters
• Objects
• E-mails
etc

Behaviors that are NOT Sexual Harassment
Welcomed and NOT sexual in
nature:
1. Voluntary lunch or dinner dates – asking a
coworker to have lunch or dinner
2. Appropriate compliments – telling a
person that his or her outfit is nice
3. Acts of courtesy – opening the door for
someone
January 22, 2024

Unwelcomeness
In order to be “unwelcome” the
conduct must be both:
1. Actually offensive to the victim and
2. Not solicited or invited by the victim
 If the conduct is welcomed, then the
conduct cannot be considered when
deciding if there was an abusive
environment.
January 22, 2024

Cont’d
Evidence that the victim
found the conduct
unwelcome includes:
1. The victim told the
harasser to stop.
2. The victim moved away
when the behavior
occurred or looked away
from the harasser when
the joke was told.
3. The victim met the joke
with a prolonged stony
silence. January 22, 2024

Cont’d
Evidence that the victim
found the conduct welcome
includes:
 The victim engaged in similar
banter with the harasser just prior
to the harassing statements.
 The victim initiated physical
contact with the alleged harasser
 The victim laughed after the
supposedly harassing joke and
remarked it was a “good one”. January 22, 2024

Cont’d
The following do not mean
that the conduct was
welcomed:
 The victim did not complain to
others about it at work.
 The victim engaged in bawdy
conduct outside the workplace
on their own time.
 The victim was heard to use
curse words from time to time.
January 22, 2024

Abusiveness
The requirement of an abusive job
environment is broken into three
parts:
1. Subjectively abusive
2. Objectively abusive
3. Part of the job environment
January 22, 2024

Cont’d
 A job environment is subjectively abusive if
the Complainant actually believes it is
abusive.
Evidence that the Complainant has a
subjective belief of abusiveness includes:
 Complainant states that they felt the
environment was abusive. This could be
corroborated by Complainant seeking
professional counseling.
 Complainant complained to other people
about the environment (whether or not
“officially”). January 22, 2024

Cont’d
 A job environment is objectively abusive if
a reasonable person would find the
environment abusive.
Factors in deciding whether the
environment is objectively abusive
include:
 Frequency
 Severity
 Physically threatening or humiliating
 Unreasonably interferes with job
performance
 Effect on psychological well-being
January 22, 2024

Cont’d
 Frequency & Severity of the
harassment are the most important
factors.
 They add together to make how
bad the environment is. If it is bad
enough it is “abusive”.
 As the severity goes up, the
frequency needed goes down.
January 22, 2024

Is it Harassment?
When in doubt about the
appropriateness of particular
behavior consider the following:
◦ Would I behave the same way if
my mother or child were standing
next to me?
January 22, 2024

Is it Harassment?
When in doubt about the
appropriateness of particular
behavior consider the following:
Would I want my behavior to be
the subject of a report on the
evening news?
Would I want to describe my
behavior in court in front of a
judge or jury?
January 22, 2024

What is the Employee’s Responsibility?
 Understand
 Know company policy and the law
 Adhere to policy and the law
 Be careful
 Be Watchful
 Pay attention to coworkers- avoid
inadvertent offense
 Look for subtle forms of
harassment
 Report any instances
January 22, 2024

Cont’d
 Be active
 Confront harassers directly, if you are
comfortable doing so
 If confrontation fails, file a grievance
 Document ALL instances- detail
Detail DETAIL!
 Be courteous
 Pleasantries are always allowed
 Remember, jokes that end with “If
they weren’t watermelons, what were
they?” aren’t funny to everyone.
 Reference the Golden Rule
January 22, 2024

Cont’d
 Think!
 Don’t tweak “brittle” people for sport
 Try to avoid loaded words; you’re
intelligent enough to express
displeasure without the “F” word
 Ask yourself (or others): Am I offending
anyone?
 Be Professional
 Keep your personal life personal, and
your work life professional
 Treat other employees, above and
below you, with respect
January 22, 2024

Employee Responsibilities & the
public
 Employees who deal directly with
customers, the public or with personnel
from other organizations, must always
ensure that their own behavior is
acceptable.
 They are also strongly encouraged to
report incidents of unwelcome behavior
by others.
 You do not have to tolerate unwelcome
behavior by the public, but like everyone
else, you must act responsibly when
dealing with unwelcome conduct.
January 22, 2024

Supervisors and Employees DO’S
Supervisors: Employees:
• Take the situation
seriously
• Communicate with
employee
• Act immediately to
stop behavior
• Maintain
confidentiality
• Remain neutral
• Resolve at lowest
possible level -
whenever possible
• Report it to your
supervisor
• Contact Human
Resources for
assistance
• Document actions
January 22, 2024

Your Organization’s Obligation
 Your Organization has the
obligation to have a work place that
is free of discrimination and
harassment of any type
 Having an anti-harassment policy
is a step in the right direction
January 22, 2024

Anti-Harassment policy
 Statement prohibiting harassment
 Definition of harassment and examples of
prohibited behaviors
 Explanation of complaint procedures and
designation of persons to whom
complaints should be made
 Assurance that a prompt, thorough and
confidential investigation will take place
January 22, 2024

Cont’d
 Assurance that if a violation of the policy is
found, that there will be prompt, corrective
action by the employer.
 Assurance that there will be no retaliation
for reporting the harassment.
January 22, 2024

Employer Liability
 The employer is subject to
liability if the harassment
was committed by a
supervisor with immediate
or successively higher
authority over the
employee.
January 22, 2024

Affirmative Defense: Acts of Supervisor
Employer must show that:
• Employer exercised
reasonable care to prevent
and promptly correct
harassing behavior.
• Employee unreasonably
failed to take advantage of
preventive or corrective
opportunities or to otherwise
avoid harm
January 22, 2024

Employer Liability for Acts of Supervisors
Quid Pro Quo
• Employer is
always liable for
acts of supervisor
• Cannot raise
affirmative defense
to avoid or limit
liability
Hostile work
environment
• Can raise
affirmative defense
to avoid or limit
liability
January 22, 2024

Employer Liability:Acts of Coworkers or
nonemployees
Coworkers:
• If knew or should
have known of the
misconduct
• Unless can show
they took
immediate and
appropriate
corrective action(s)
Nonemployees:
• Employer’s control
over individual’s
misconduct is
considered
January 22, 2024

January 22, 2024
STOP
BE RESPONSIBLE &
STOP
SEXUAL
HARASSMENT!!

January 22, 2024
THE END OF THE COURSE!!
THANK YOU!!
ANY QUESTION?

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