human resource management comprehensive notes

 HRM is a part of the broader field of
management, thus one must
understand what management is in
order to understand human resources
management.
 Management is the process of planning,
organizing, staffing, directing and
controlling the efforts of organization’s
members and using all other resources

Human resources
management
 HRM deals with acquisition, retention,
development and effective utilization of
human resources. HRM is a strategic
and coherent approach to management
of an organization’s most valued assets
i.e. the people who individually and
collectively contribute to achievement of
its objectives.

Human resources management -
defination
 The management function of identifying the need
for acquiring, optimally utilising and finally
discharging the human factor back to society in a
responsible and ethically acceptable way.
 Refers to the philosophy, policies, procedures and
practices related to the management of people in
an organisation.
20/03/2024 4

HRM - defination
 All those activities associated with the management
of employment relationships in the firm. Managing
employment relationships aims at enhancing
commitment, quality and flexibility of employees –
‘SOFT HRM’ OR HIGH COMMITMENT MANAGEMENT
(HCM).
20/03/2024 5

Definition cont..
 HRM is a distinctive approach to employment
management which seeks to achieve improved
performance of the firm (competitive advantage)
through the strategic deployment of highly
committed and capable workforce using considered
techniques.
 HRM seeks to adopt policies and procedures which
support organizational strategy (business
objectives). ‘HARD HRM’ (STRATEGIC HRM-
SHRM)- which support corporate strategy goals
such as cost minimization, lean operation
structures. 20/03/2024 6

Definition cont..
 It is the function of management that
focuses on staffing. It goes beyond the
traditional personnel management role.
 It is the process of acquiring, training,
appraising and compensating employees
and attending to their labour relations,
health and safety, and fairness concerns
 Includes All decisions that affect the
workforce

HRM functions
 Human Resource Planning
 Job analysis and Job design
 Recruitment and selection
 Placement and Orientation
 Training and development

HRM functions
 Managing wages salaries, incentives
and benefits (compensation
management)
 Performance management
 Employee Health and safety
 Industrial Relations
 Managing employee separation

Features of HRM
 It emphasizes on strategic management of
people which achieves integration between
business strategy and the HR strategy
 A comprehensive approach is adopted in
development of HRM policies and practices
 It places importance in gaining
commitment to organizational goals,
mission and values its commitment –
oriented

 It treats people as assets rather than costs
i.e. people are regarded as a source of
competitive a development and as human
capital to be invested in through the provision
of leaning and development opportunities
 Its approach to employee relations is unitarist
rather than pluralist i.e. it is believed that
employees share the same interest as
employers
 HRM is a line management responsibility

Objectives of the HRM
Function
 Helping the organization reach its
goals
 Employing the skills and abilities of
the workforce efficiently
 Providing the organization with
well-trained and well-motivated
employees

 Increasing to the fullest the employee’s
job satisfaction and self-actualization.
 Developing and maintaining a quality of
work life that makes employment in the
organization desirable
 Communicating HRM policies to all
employees
 Helping to maintain ethical policies and
socially responsible behavior

 Managing change to the mutual
advantage of individuals, groups,
the enterprise and the public
 Managing increased urgency and
faster cycle time

Why HR skills are
important to all managers
 To ensure the right personnel is hired
and placed in the right jobs
 To reduce turnover
 To ensure that people are doing their
best and improving their job
performance
 To ensure that you do not waste time
on useless interviews

Why HR is important to all
managers (cont..)
 To ensure that your company is not
taken to court because of breaking any
of the labour laws (unfair labour
practices)
 Ensure equity in salaries, wages and
other benefits
 To ensure that lack of training does not
undermine the organizational
effectiveness

Challenges of HRM
 Globalization
 Profitability through growth
 Technology
 Intellectual capital
 Change

Challenges of HRM cont..
 Changing mix of the work force
 Changing values of the workforce
 Changing expectations of employees
 Changing levels of productivity
 Changing demands by the govt
 Epidemics e.g. HIV/AIDS, Ebola
 Changing labour laws

 Regional conflicts
 Natural disasters
 Leaner workforce
 Formulating HR policies and strategies

Similarities between Personnel
and HR Management
 Personnel management strategies like
HRM strategies flow from the business
strategy
 Personnel management like HRM
recognizes that line managers are
responsible for managing people. The
personnel function provides necessary
advice and support services to enable
managers to carry out their

 The values of personnel management
and HRM are identical with regard to
respect to individual employees where
there is need of balancing organization
and individual needs and developing
people to achieve the maximum level of
competence both for their own
satisfaction and to facilitate the
achievement of organizational
objectives

 Both personnel management
and HRM recognize that of most
essential functions as that of
matching people to even
changing organizational
requirements i.e. placing and
developing the right people in
for the right jobs

 The same range of techniques in
selection, competency analysis,
performance management, training,
management development and reward
management is used in both HRM and
personnel management
 Personnel management like HRM
attaches importance to process of
communication and participation within

Differences
 Personnel management is an activity
aim primarily at non managers where
as HRM is more concerned with
managerial staff
 HRM is much more of an integrated
line management activity whereas
personnel management seeks to
influence line management

 HRM emphasizes the
importance of senior
management being involved in
management of people whereas
personnel management does
not

Human Resource Planning
 This is the process of determining an
organization’s human resource needs.
 It is also the process of systematically
reviewing human resource requirements to
ensure that the required number of
employees, with required skills are available
when and where they are needed.
 It involves matching internal and external
supply of people with job openings,
anticipated in the organization over specified
period of time.

Dealing with surplus
 Restricted hiring
 Reduced hours
 Early retirement
 Layoffs/retrenchment

Positive consequences of
retrenchment
 People may discover their full potential when
they leave employment
 Creativity and entrepreneurial spirit is
enhanced
 The organization is able to eliminate
employees who do not add value to the
organization
 Through retrenchment the organization can
get rid of employees who are untrainable and
incapable of learning

 Employees who feel underutilized in the
organization can look for other work to
do where they can utilize their skills
 The employer is able to get an optimal
number hence efficiency is achieved
 A performance culture is created
because retrenchment serves as a wake
up call for non-performers

Negative consequences of
retrenchment
 Traumatizing experience to the victim
 Regular income ceases, hence
employees are not able to meet their
bills
 It affects employees’ standard of living
 Heavy workload to the remaining
employees which may be a cause of
fatigue

 The morale of the remaining
employees goes down
 The image of the organization is
affected since the employees
who leave may bad mouth the
organization

Dealing with shortage
 Creative recruiting
 Compensation incentives
 Training programmes
 Different selection standards
 Overtime
 Outsourcing
 Employee leasing
 Job enlargement/multiskilling

HR Forecasting
Techniques (Methods)
 Zero-Base Forecasting
 Bottom-up Approach
 Predictor Variables/Trend
Projection Technique
 Expert Estimate Technique
 Simulation
 Use of Mathematical Models

JOB ANALYSIS
 This is the systematic process
of determining the skills, duties
and knowledge required for
performing jobs in an
organization. It involves
collecting data about jobs

 Job Analysis is a process to identify and
determine in detail the particular job
duties and requirements and the
relative importance of these duties for a
given job.
 Job Analysis is a process where
judgements are made about data
collected on a job.

 The purpose of job analysis is to
obtain answers to six important
questions:
 What physical and mental tasks
does the worker accomplish
 When is the job to be completed
 Where is the job to be
accomplished

 How does the worker do the job
 Why is the job done
 What qualifications are needed
to perform the job

 The data collected about jobs is
used to prepare two
documents:
 Job description
 Job specification

 Job description –the principal
product of a job analysis. It represents
a written summary of the job as an
identifiable organisation unit
 Job specification – a written
explanation of the knowledge, skills,
abilities, traits and other characteristics
(KSAOs) necessary for effective
performance on a given job

Parts of a Job Description
 Job identification
 Job summary
 Duties performed
 Date of the job analysis
 Performance standards - in terms
of quantity and quality levels of
each job duty

 Relation to other jobs
 Supervision
 Machine, tools and equipment
 Working conditions
 Hazards

Job Specification
 It is a written record of the
requirements sought in an
individual worker for a given job. It
refers to a summary of the
personal characteristics required for
a job. It is a statement of the
minimum acceptable human
qualities necessary for the proper

Reasons for Conducting
Job Analysis
 Human resource planning
 Recruitment and selection
 Training and development
 Performance appraisal
 Compensation and benefits

 Employee health and safety
 Employee relations
 Legal considerations
 Maintenance and separation

Job Analysis Methods
 Observation
 Questionnaires
 Interviews
 Employee recording
 Technical conference method

Steps in Job Analysis
Step 1:
 Examine the total organization
and the fit of each job
 Provides a broad view of how
each job fits into the total fabric
of the organization
 Organizational chart and process
chart are used to complete step 1

Step 2
 Determine how the job analysis
information will be used
 Encourages those involved to
determine how the job analysis and
design information will be used –
will it be used for job description

Step 3
 Select jobs to be analyzed. These would be
representative job positions especially if there
are too many jobs to be analyzed
Step 4
 Collect data by using acceptable job analysis
techniques.
 The techniques are used to collect data on
the characteristics of the job, the required
behaviours and the characteristic an
employee needs to perform the job

Step 5: prepare job descriptions
Step 6: prepare job specification
Step 7: Use the information in step 1
– 6 for job design, planning,
recruitment, selection and training,
performance evaluation,
compensation and benefits etc

RECRUITMENT AND
SELECTION
 Recruitment is the process of attracting
individuals on a timely basis, insufficient
number and with appropriate qualifications
and encouraging them to apply for jobs
within an organization. Finding the
appropriate way of encouraging qualified
candidates to apply for employment is
extremely important when a firm needs to
hire employees.

Recruitment sources
 Internal
 External
Internal Sources
 Many large organizations attempt to
develop their own low level employees
for higher positions. These promotions
can occur through an internal search of
current employees who have bid for the
job. Been identified through the
organizations HRM system or even been
referred by a fellow employee.

Advantages of current
employees
 It is good public relations
 It builds morale
 It encourages good individuals who
are ambitious
 It improves the probability of a good
selection because information on the
individual’s performance is readily
available

 It is less costly than going outside to
recruit
 Those chosen internally already know
the organization
 When carefully planned promoting from
within can also act as training device for
developing middle and top level
managers e.g. through on the job
training techniques

Disadvantages
 They could be dysfunctional if the
organization uses less qualified internal
sources only because they are there when
excellent candidates are available on the
outside
 Internal searches may generate in fighting
among rival candidates for promotion
 It decreases morale levels of those not
selected
 It causes excessive in breeding i.e. it
hinders new blood with current ideas,
knowledge and enthusiasm

Employee referrals and
recommendations
Advantages
 Employees rarely recommend someone unless they
believe the individual can perform adequately. Such a
recommendation reflects on the recommender and
when someone’s reputation is at stake, we can
expect the recommendation to reflect considered
judgment
 Employee referrals may receive more accurate
information about their potential jobs. The
recommender often gives the applicant more realistic
information about the job than could be conveyed
through external sources. This information therefore
reduces unrealistic expectations and increases job
survival
 Employee referrals are an excellent means of locating

Disadvantages
 Recommenders may confuse friendship with job
performance competence. This is because
individuals often like to have their friends from
them at their place of employment for social and
economic reasons
 Employee referrals may lead to nepotism i.e. hiring
individuals related to persons already employed by
the organization’s racisms, tribalism etc
 Employee referrals may minimize an organization’s
desire to add diversity to the workplace

External Sources &
methods of recruitment
 Advertisements
 Employment Agencies
 There are three forms of employment
agencies
 a) Public or state agencies
 b) Private employment agencies
 c) Management consulting firms

 Schools, Colleges and
Universities
 Professional Organizations
 Unsolicited Applicants
 Cyber Space/Internet Recruiting

Advantages of internet
recruiting
 Internet recruiting provides a low cost means for
most businesses to gain unprecedented access to
potential employees worldwide
 It is a way to increase diversity i.e. getting potential
employees from across the globe
 Due to a wide search, internet recruiting provides
people with unique talents
 As computer prices fall, access costs to the internet
decrease and therefore many potential employees
access internet hence organization can advertise
higher level jobs as well as low level jobs

Disadvantages
 There is not any personal touch on
contact between the potential
employee and the organization
 Not all potential candidates can access
the internet therefore the selection
choice may not be very wide

 Competitors in the Labour Market
 Former Employees of the Organization
 Persons with Disabilities
 Older Individuals
 Self Employed Workers
 Job Fairs

 Internships
 Benefits of Internship
 During the internship the student gets
to view business practices first hand
 The intern contributes to the firm by
performing needed tasks
 Through this relationship a student can
determine whether a company could be
a desirable employer

 Having a relatively lengthy of time to
observe the students job performance,
the firm can make a better judgment
regarding a persons qualifications.
 Internships also provide opportunities
for students to bridge the gap from
business theory to practice
 Internships serve as an effective public
relations tool that provides feasibility for
the company and assists in recruitment.

 Open Houses
 Walk in Applicants
 Event Recruiting

Advantages of External
Recruitment
 Free flow of new ideas into the
organization
 Increased productivity as a result of
new employees trying to prove their
performance and potential
 Less training costs because these
employees are already experienced

Disadvantages
 Expensive – because of recruitment
costs
 The organization is not sure of their full
potential and performance
 Reality shock as a result of unrealistic
expectations
 Take time to settle down

Alternatives to
Recruitment
 Outsourcing
 Overtime
 Multi-skiling (job enlargement)
 Contingent workers (temporary and
part time)
 Employee leasing

Outsourcing
 This is the process of transferring
responsibility for an area of service and its
objectives to an external provider.
Subcontracting of various functions to other
firms has been a common practice for
decades. This decisions may make sense
when the subcontractor can perform a given
function e.g. maintenance, cleaning etc with
perhaps even greater efficiency and
effectiveness.

Contingent Workers
 These are part-time temporary or
independent contractors. Due to global
competition and changing technology
organizations are not able to do accurate
forecasting of their employment needs in
advance. To avoid hiring people one day and
resulting to lay offs the next, firms look to the
benefits of flexible employment strategies.

Employee Leasing
 The leasing firms have got employees
who are specialists in providing various
services and these employees are
usually sent to the various client firms.
The employees are accountable to the
leasing firm for everything including
salaries and benefits as well as other
issues that concern or affect
employee/employer relationship

Overtime
 This is the most commonly used
method of meeting short term
fluctuations in work volume. Overtime
may help both the employer and
employee. The employer benefits by
avoiding recruitment, selection and
training costs. The employees gain from
increased income during the overtime
period.

Multi-skilling/ job
enlargement
 This is whereby employees’
duties are increased such that
they can handle extra duties
that they were not initially
performing.

External Environment of
Recruitment
 Labour market conditions
 Legal considerations
 Political interference
 Trade unions
 Corporate image
 Economic factors

Internal Environment of
Recruitment
 Organizational policies
 Nepotism

SELECTION
 It is the process of choosing the best employees out
of the many recruits.
 It is required of recruits to fill a job application from
which seeks four types of information:
 Personal information – names, addresses, telephone
numbers, marital status, age, gender, nationality,
height, weight,
 Education background – schools, higher education,
institutions attended qualifications obtained, special
training, membership or professional bodies

 Employment history – companies worked for,
dates of employment, duties and
responsibilities, military service
 Other interests - sports, hobbies,
membership and clubs, societies
 The job application form gives;
 A basis for drawing up a shortlist
 Provides a foundation of knowledge to be
used before the interview
 Post interview decision making process

SELECTION PROCESS
 The preliminary interview
 Review of application and resumes
 Selection tests
 Employment interviews
 Reference and background checks
 Selection decision
 Medical examination
 Job offer

Review of Applications and
Resumes
 Biographical Data
 This may include name, father’s name, date and place of
birth, age, sex nationality, height, weight, physical disability if
any, marital status, number of dependants etc.
 Educational Attainment
 Includes education (subjects offered and grades secured,
training acquired in special fields and knowledge gained from
professional or technical Institutions.
 Work Experience
 Includes previous experience, the number of jobs held with
same or other employers, including the nature of duties and
responsibilities and the duration of various assignments,
salary received, grades and reasons for leaving the present
employer.

 Salary and Benefits ie present and expected .
 Personal Items
 Association memberships, extracurricular
activities, sports, hobbies and any other
pertinent information supporting a
candidate’s suitability for a post.
 Other Items
 May include names and addresses of previous
employers, references etc

Selection Tests
Advantages of Selection Tests
 Research indicates that tests are reliable and
accurate means to predict on the job
performance.
 The cost of employment testing is small in
comparison to ultimate hiring cost. Hiring
costs include advertising, recruiting,
interviewing and training expenses
 Organizations use tests to identify aptitudes
and job related skills that interviews cannot
recognize.

Problems using selection
tests
 Job performance depends on an individual’s
ability and motivation to do the work.
Selection tests may accurately predict an
applicant’s ability to perform the job but they
are less successful in indicating the extent to
which the individual will be motivated to
perform it.
 Legal liabilities – pre-employment testing
carry legal liabilities eg a law suit from
rejected applicants who claim a test was not
job related or that it unfairly discriminated
against a protected group violating
employment laws.

 Test anxiety – applicants often
become quite anxious when
confronting a hurdle that might
eliminate them from consideration.
The test administrators reassuring
manner and a well organized
testing operation should serve to
reduce this threat

Interviews
 Content of the interview
 The interview should provide information
abut the company, the job and expectations
of the candidate. Other areas that should be
included in an interview are:
 Occupational Experience
 The interviewer explores the candidate’s
knowledge, skills, ability and willingness to
handle responsibility. Although successful
performance in one job does not guarantee
success in another, it does provide an
indication of the person’s ability and
willingness to work.

 Academic Achievement
 In the absence of significant work
experience a person’s academic record
takes on greatest importance.
 Interpersonal Skills
 An individual may posses important technical
skills significant to accomplishing a job.
However if the person cannot work well with
others, chances for success are slim.

 Personal Qualities
 These personal qualities normally observed
during the interview include physical
appearance, speaking ability, vocabulary,
adapting etc. As with all selection criteria
employer should consider these attributes
only if they are relevant to job performance
 Organization ‘fit’
 Organization fit refers to management
perception of the degree to which the
prospective employee will fit in with the firm’s
culture or value system.

Types of interviews
 Patterned or Structured Interview
 This is the most common method of interview. It is
based on the assumption that to be most effective
every pertinent detail bearing on what is to be
accomplished what kind of information is to be
sought, how much time is to be allotted to it must
be worked out in advance. Questions are asked in
a particular order with very little deviation.
 Non-directive or Free Interview
 It is unstructured and is relatively non-planned as
to format. In such an interview, the applicant is
asked some very general questions and he may
reply to these in any way he likes for a
considerable length of time. The interview is not
directed by questions or comments as to what the

 Depth or Action Interview
 It is semi-structured in nature and utilizes questions
in key areas which have been studied in advance by
the interviewer. The typical subject discussed at such
interviews include a candidates home life, education,
previous experience, hobbies, recreational interests
etc. The interviewer provides instructional
information about his organization, the nature of
work, pay, opportunities for advancement, job
demands etc. The idea of such an interview is to get
a true picture of the interviewer by intensively
examining his background and thinking so that a
correct evaluation and decision may be made.

 Group Discussion Interview
 In this type of interview groups rather than
individuals are interviewed. The interviewees are
given certain problems and are asked to reach a
specific decision within a particular time limit. The
applicants enter into group discussions knowing that
the interviewee is a test but do not know which
qualities are being measured or tested.
 Panel or Board Interview
 In this type of interview, a candidate is interviewed
by a number of interviewers. Questions may be
asked in turn or asked in random order as they arise
on any topic.

 Stress Interview
 In the stress interview, the interviewer assumes a
hostile role towards the applicant. He deliberately
puts him on the defensive by trying to annoy,
embarrass or frustrate him. Usually the interviewer in
such circumstances asks questions rapidly, criticizes
the interviewees answers interrupts him frequently,
keeps the candidate waiting indefinitely and then
subjects him to interrogation, questioning whatever
he might state or too many questions are asked at a
time by many interviewers etc. The purpose is to find
out how a candidate behaves in a stress situation,
whether he bases his temper, gets confused
frightens.

Procedure for an interview
 Review background information
 Before proceeding to interview, a candidate is advisable to
collect and correlate all relevant information about her/him
 Preparation of question plan
 This is especially important for inexperienced interviewers. As
question is put to candidate and answered by her it should be
cross marked and then next question asked
 Putting the candidate at ease
 For most candidates undergoing an interview, means
considerable mental and emotional strain but display of people
understanding and sympathy on part of interviewer may
considerably relieve such tension. The candidate should also be
provided with all necessary facilities and comfort so as to put
her at ease. The interviewer should not interrupt candidate in
any way and should patiently listen to her answers

 Drawing out the best in a candidate
 Different candidates react differently to questions put
to them during an interview. It is therefore for
interviewer to decide how best to handle each
candidate so as to get the best out of her or him
 Concluding the interview
 After interview is over and candidate has left the
room, interviewer/s should quickly glance through
their notes and bring to mid their impression about
the candidate so as to make a provisional assessment
of her/his performance. It is only after this that the
next candidate should be called in

Reference and background
checks
 Reference checks are validations that provide
additional insight into the information furnished by
the applicant and allow verification of its accuracy. In
fact applicants are often required to submit the
names of several references that can provide
additional information about them. Most
organizations place more emphasis on professional
references included in background investigations.
Background investigations involve obtaining data
from various sources, including previous employers
and business associates. These professional
references and academic institutions are a valuable
source of information about applicants

 Negligent hiring- the liability an employer
incurs when it fails to conduct a reasonable
investigation of an applicant’s background
and then assigns a potentially dangerous
person to a position where he or she can
inflict harm.
 Negligent retention- when a company
keeps persons on the payroll whose records
indicate strong potential for wrongdoing and
fails to take steps to defuse a possible violent
situation.


 Negligent referral- when a
former employer fails to offer a
warning about a particularly severe
problem with a past employee.

PLACEMENT AND
INDUCTION
Placement
 This is determination of the job to
which the accepted candidate is to be
assigned and his actual assignment to
that job. A proper placement of a
worker reduces employee turnover,
absenteeism and accidental rates as
well as improving morale.

Principles for consideration
during placement
 Right people should be placed on right jobs
 A candidate should be placed on the job
according to the job requirement
 A job should be offered to candidates who
have required qualifications and experience
 At the time of placement, candidate should
be educated about the job, working
conditions, target output, expectations of job
etc

INDUCTION
 Induction is the process of
receiving and welcoming
employees when they first join a
company and giving them the basic
information they need to settle
down quickly and happily and start
work. Induction has four aims:

 To smooth the preliminary stages when
everything is likely to be strange and
unfamiliar to the starter;
 To establish quickly a favourable attitude to
the company in the mind of the new
employee so that he or she is more likely to
stay;
 To obtain effective output from the new
employee in the shortest possible time;
 To reduce the likelihood of the employee
leaving quickly

Importance of Induction
Reducing the cost and inconvenience of early
leavers
 The costs can include:
 Recruitment costs of replacement;
 Induction costs (training etc);
 Costs of temporary agency replacement;
 Cost of extra supervision and error correction;
 Gap between the employee’s value to the company
and the cost of the employee’s pay and benefits

Increasing Commitment
 A committed employee is one who identifies
with the organization, wants to stay with it
and is prepared to work hard on behalf of
the organization. The first step in achieving
commitment is to present the organization
as one that is worth working for and to
ensure that this first impression is
reinforced during the first weeks of
employment

Clarifying the
Psychological Contract
 Consists of implicit, unwritten beliefs and
assumptions about how employees are expected to
behave and what responses they can expect from
their employer. It is concerned with norms, values
and attitudes. The psychological contract provides
the basis for the employment relationship, and the
more this can be clarified from the outset, the
better. Induction arrangements can indicate what
the organization expects in terms of behavioural
norms and the values that employees should
uphold. Induction provides an opportunity to
inform people of the way things are done so that
misapprehensions are reduced even if they cannot
be eliminated.

Accelerating Progress up
the Learning Curve
 New employees will be on a learning curve
– they will take time to reach the required
level of performance. Clearly, the length of
the learning curve and rates of learning
vary, but it is important to provide for it to
take place in a planned and systematic
manner from the first day to maximize
individual contributions as quickly as
possible.

Socialization
 New employees are likely to settle in
more quickly and enjoy working for
the organization if the process of
socialization takes place smoothly. The
social aspects of work (relationships
with colleagues) are very important
for many people.

Formal induction programs
 INDUCTION ACTIVITIES
 1. Reception
 The following checklist for reception is
recommended;
 Ensure that the person whom the new
employee first meets (ie. the receptionist,
personnel assistant or supervisor) knows of
their pending arrival and what to do next.

 Set a reporting time, which will avoid the risk of the
starter turning up before the reception or office staff
arrive.
 Train reception staff in the need for friendly and
efficient helpfulness towards the new employee.
 If the new employee has to go to another location
immediately after reporting, provide a guide, unless
the route to the other location is very
straightforward.
 Avoid keeping the new employee waiting without
knowing what to do next.

Documentation
 A variety of documents may be issued to new
employees, including safety rules and safety
literature, a company rule book containing details of
disciplinary and grievance procedures and an
employee handbook.
 The Employee Handbook
 An employee handbook is useful for this purpose. It
should convey clearly and simply what new staff
needs to know;
 A brief description of the company – its history,
products, organization and management;

 Basic conditions of employment – hours of
work, holidays, pension scheme, insurance;
 Pay – pay schemes, when paid and how,
deductions, queries;
 Sickness – notification of absence,
certificates, pay;
 Leave of absence;
 Company rules;
 Disciplinary procedure;

 Capability procedure;
 Grievance procedure;
 Promotion procedure;
 Union and joint consultation arrangements;
 Education and training facilities;
 Health and safety arrangements;
 Medical and first-aid facilities;

 Restaurant and canteen facilities;
 Social and welfare arrangements;
 Telephone calls and correspondence;
 Rules for using email;
 Traveling and subsistence expenses

Company induction –
initial briefing
 The member of the personnel department or other
individual who is looking after new employees should
run through the main points with each individual or,
when larger numbers are being taken on, with
groups of people. In this way, a more personal touch
is provided and queries can be answered.
 When the initial briefing has completed, new
employees should be taken to their place of work and
introduced to their manager or team leader for the
departmental induction programme. Alternatively,
they may go straight to a training school and join the
department later.

Introduction to the
workplace
 New employees will be concerned about who they
are going to work for (their immediate manager or
team leader), who they are going to work with,
what work they are going to do on their first day,
and the geographical layout of their place of work
(location of entrances, exists, lavatories, restrooms
and the canteen).
 Some of this information may be provided by a
member of the HR department, or an assistant in
the new employee’s place of work. But the most
important source of information is the immediate
manager, supervisor or team leader.

 The departmental induction programme
should, wherever possible, start with the
departmental manager, not the immediate
team leader. The manager may give only a
general welcome and a brief description of
the work of the department before handing
new employees over to their team leaders for
the more detailed induction. But it is
important for the manager to be involved at
this stage.

Formal induction courses
 Formal induction courses enable new employees to
be assembled in groups so that a number of people
can be given consistent and comprehensive
information at the same time, which may not be
forthcoming if reliance is placed solely on
supervisors. A formal course is an opportunity to
deliver messages about the organization, its
products and services, its mission and values, using
a range of media such as videos and other visual
aids that would not be available within
departments.

Content of formal
induction courses
 Information about the organization – its
products/services, structure, mission and core
values;
 Learning arrangements and opportunities –
formal training, self-managed learning,
personal development plans;
 Performance management processes – how
they work and the parts people play;
 Health and safety – occupational health,
prevention of injuries and accidents,
protective clothing, basic safety rules;

 Conditions of service – hours, holidays, leave,
sick pay arrangements, maternity/paternity
leave;
 Pay and benefits – arrangements for paying
salaries or wages, the pay structure,
allowances, details of performance,
competence or skill based pay schemes,
details of profit sharing, gain sharing or share
ownership arrangements, pension and life or
medical insurance schemes;

 Policies, procedures and working
arrangements – equal opportunities policies,
rules regarding sexual and racial harassment
and bullying, disciplinary and grievance
procedures, no-smoking arrangements;
 Trade unions and employee involvement –
trade union membership and recognition,
consultative systems, agreements, suggestion
schemes.

On-the-job induction
training
 Most new employees other than those on
formal training schemes will learn on the job,
although this may be supplemented with
special off-the-job courses to develop
particular skills or knowledge. On-the-job
training can be haphazard, inefficient and
wasteful. A planned, systematic approach is
very desirable. This can incorporate:
 Job skills analysis to prepare a learning
specification;
 An initial assessment of what the new
employee needs to learn;

 The use of designated colleagues to act as guides
and mentors – these individuals should be trained in
how to carry out this role;
 Coaching by team leaders or specially appointed and
trained departmental trainers;
 Special arrangements
 These on-the-job training arrangements can be
supplemented by self-managed learning
arrangements, by offering access to flexible learning
packages and by providing advice on learning
opportunities.

TRAINING AND
DEVELOPMENT
 Training is the process of raising
knowledge and skills of an employee for
doing particular jobs. It is organized
activity designed to create a change in
the thinking and behaviour of people
and to enable them to do their jobs in a
more efficient manner.

Differences between
training and development
training Development
Training usually refers to some kind
of organized (and finite in time)
event -- a seminar, workshop
Development is a process
Training has a beginning and end.
Participants are exposed to
knowledge and skills associated with
new concepts during the event.
Employee development is a much
bigger, inclusive "thing". For
example, coaching and rotating of
job responsibilities to learn about
the jobs of their colleagues

Training Development
Results of training is change in
performance
Results of development is to
change lives
When we train people, we focus on
the job
When we develop people, we focus
on the person
When we train people, we’re adding
value to specific things, such as
what their job description is.
When we develop people, we add
value to everything. They not only
become better in their jobs, they
become better in life.

Training Development
Employee training is a necessity for
any business that wants to remain
competitive in today’s marketplace.
But leaders who want to make a
lasting difference also recognize that
training by itself is not enough and
development will do
Training people is helpful for a short
time,.
Developing people is helpful for a
lifetime
Training often focuses on the
immediate period to help fit any
current deficit in employees skills.
The focus on development is on the
long term to help employees
prepare for future work demands

Reasons for Training
Non availability of trained personnel
 It is difficult to find properly trained workers for
various categories of jobs in an organization. This
sometimes makes it necessary to select workers
with little or no training for kind of work to be
handled by them.
Suitability for organizational needs
 Even where a worker is well trained for job to be
assigned to him, he needs to be given some special
training consistent with specialized job
requirements of organization.

Proficiency on latest methods
 Rapid scientific and technological developments have made it
necessary to provide continuous training facilities in
organization itself. This is because even when a worker has
been trained in one set of work methods, he finds that where
he has learnt at considerable expense of time and effort has
already become outdated due to invention of never methods.
Job satisfaction
 Training gives employee confidence in handling the job assigned
to him. It enables him to achieve level of performance required
by job to be handled by him. It instills self confidence and
boosts morale of employee which makes him more productive
and committed to organizational goals.

Higher output of quality goods
 Training helps employee to raise quantity
and quality of his output through
improvement in work methods and skills
Fewer accidents
 Training helps in reducing number of
accidents and breakdowns. A person who
has learnt how to do a job even before he is
put on it will handle machines move
competently than untrained person.

Low spoilage rate
 It reduces spoilage rate and wastage of material.
This is because it makes a substantial raise in skills
such that even in the midst of vast changing
technology, workers do not go out of touch with
modern machines
Reduction in number of complaints
 A trained worker never complains about his work or
their machines and tools given to him to perform it.
Only untrained worker may do so.
Better use of resources
 With trained workers, the organization can apply its
physical, financial and HR in a better and more
economical way

Management by exception
 Trained workers develop sharper reflexes and a
greater capacity for diagnosis and analysis of day to
day problems. They need not rush to supervisor
every now and then for advice to solve routine
problems. This considerably reduces the work load of
supervisors who can practice management by
exception and devote the time and energy to tackling
larger and move important issues.
Healthy interpersonal relations
 Raising complexity of organization has led to
interpersonal and inter group problems due to loss of
contact between management and employees.
Proper human relations training of which many new
techniques have been developed can help in

Identification of Training
Needs
 Organizational Analysis
 This consists of identifying the areas where training
of employees is called for. Employee training needs
will depend on objectives organization structure,
existing personnel and future plans of organization.
This will highlight what activities will be undertaken
by organization and whether employees with their
existing skills would be able to perform them
efficiently.
 Task Analysis
 This calls for detailed examination of each job,
activities to be performed to accomplish required
standards and working conditions under which it is to
be performed. This will indicate what kind of jobs are
performed and what types of employees will be able

 Worker analysis
 This analyses skills, abilities and what kind of
training and development facilities that each
employee requires to enable him to perform
better. The ideal way to identify such needs is
to observe employees at work, interview with
individual employees, their supervisors and
colleagues and past records techniques.

ON THE JOB TRAINING
METHODS
 This is where employees are trained as they
perform their jobs.
 1. Orientation/induction training
 This is meant for new employees and its
objective its to adopt them to specialized job
requirements and work methods of the
organization. In this training, new employee
is given a job description and also provides
with a set of policies, rules and procedures
which have bearing on his performance as an
employee.

 2. Apprenticeship training
 Here, a worker is appointed as an apprentice.
He is placed under the charge of qualified
senior worker. He learns methods of work by
observing and assisting his senior. In-skilled
trades apprenticeship training in the most
common. Electricians, plumbers, machine
operators etc usually learn their jobs through
such training. The period of apprenticeship
differs from job to job. During this kind of
training, worker is paid less than a qualified
worker.

 3. Delegation
 It is a process whereby the superior assigns certain
responsibilities to his subordinates and also delegate
to here authority in equal measure. It forces
subordinate to make his own decisions without
looking up to his superior every now and then and
also display leadership qualities. Delegation enables
superiors to train their subordinates in a specific job
by making them take their own decisions and also
feel a sense of accomplishment when a given task is
successfully performed

 4. Promotion and transfers
 Promotion or transfer in the case of an employee may cause a
significant change in the nature of his duties and
responsibilities. An employee must be properly trained before he
is promoted or transferred to a new job.
 5. Refresher training/retraining
 Rapid technological and scientific can make employees obsolete
in course of time. This is because, with change in technologies
and work methods, job requirements also change. Therefore
even those employees are adequately qualified have to undergo
training in the use of new methods and techniques. Refresher
training enables employees to refresh their memory of things
they learnt a long time ago.

 6. Vestibule training
 The word vestibule means a passage or room
between outer door and interior of a building.
It means training organized in a school or in
an industrial plant to train new workers in
specific skills so as to prepare them to handle
their jobs. It is introduced when number of
workers to be trained is large, when volume
of training is enormous and line supervisor
because of heavy responsibilities is not in a
position to spare time to attend to training.

 7. Job rotation
 The objective of job rotation is employee
development through provision of diversified training.
It may take different forms e.g. employee selected
for training, may be assigned jobs after the other in
different departments. Each such shifting
assignments is to train employee in work procedures
of different departments. Another form of job
rotation requires selected employee to observe work
of different departmental heads. Here employee
himself does not do anything in department to which
he is sent. He just observe how various departmental
heads perform their functions.

 8. Creation of “assistant to” positions
 To broaden outlook of trainee and to prepare
him for wider managerial responsibilities he
may be posted as an assistant to different
department heads. Objective of this is to
enable trainee to acquire actual managerial
experience in each department of
organizational. In this task he is helped by
superior who assigns trainee duties according
to his abilities and skills and he is always
available to offer advice and guidance

 9. Committee or board membership
 Committee is a specific type of meeting in which
members as a group are delegated to each member
irrespective of his placement in organizational
hierarchy. Thus if a supervisor and his subordinate
are both made member of committee, they will have
equal authority in deliberations of committee. The
size of committee should not be too large. It should
neither be too small to avoid conflict of power.
Committee meetings are a useful training device and
if conducted properly they enable members to
interact with another, pull their ideas and experience
with a view to solving various organizational
problems.

Advantages of on the job
training
 It facilitates the transfer of learning because the
trainee has the opportunity to practice the skills
immediately.
 Employees are able to see the relevance and
relationship of the skills learnt and the practical
aspects of the job.
 It is cost effective because no training costs are
incurred, venue cost, training materials etc.
 There is continuity of work because there is no
disruption or break from work.
 The supervisor can control what the employees is
being exposed to.

Disadvantages
 May be limiting due to lack of training
expertise, i.e managers may lack training
skills.
 It can disrupt the smooth flow of work
which in turn would inconvenience the
customers.
 Damage and wastage that can be caused
especially where machines are involved.
 Normal working condition or environment
may inhibit learning because of noise, poor
comments from other employees etc.

OFF THE JOB TRAINING
METHODS
 This is where employees leave their work
stations and go for training else where.
1. Training by management institutions
 After independence there has been
considerable growth in number of
institutions imparting technical and other
training that equips managerial and
technical personnel with the skills they
require for their respective jobs.eg. KSG,
KIM, KIE etc.

2. Lectures, seminars, conference etc
 Lecture courses may be used to impart knowledge and also
develop analytical abilities among workers. Large organization
may employ qualified and trained persons to conduct specific
lecture courses suited to needs of different categories of
workers. However, small organization which can’t afford such
expenditure can avail the services of experts employed by
educational and other professional bodies for such lecture
courses. Conferences provided occasion for formal
interchange of views among employees of different
organizations. Proposals or ideas developed by various
speakers are thrown open for discussion among participants
and consensus is reached taking into account the various
view points expressed. Seminars and workshops provided by
educational institutions and professional bodies may also be
of great help in training personnel.

3. Case study
 A case is written account of an actual
organizational situation in its historical,
environmental, operational, financial and human
aspects. Case study enables trainees to
 a) Pinpoint the problems
 b) Identify and analyze causes there of
 c) Suggest alternative solutions
 d) Indicate which of alternatives would be the best
under prevailing conditions

 4. Role playing
 It is a training method under which participants
assume certain roles and enact them spontaneously
in classroom condition. It tends to emphasize feelings
and relationships between people. In a role playing
sessions, participants are assigned the votes by
turns, while two or more trainees enact roles
assigned to them, others act as observers and critics.
As a training technique it enables participants to
broaden their experience by trying alternative
approaches to a problematic situation.

 5. Management games
 It is a training method that involves a group
exercise in decision making as regards an
administrative problem situation it is similar
to role playing the only difference is that role
playing seeks to emphasize feelings and
relationships between people while
management games are more concerned with
administrative problems.

6. Brain storming
 This is a problem solving technique which
consists of evaluation of ideas put forward by
group of people who are convened especially
for this purpose. It facilitates a pooling of
knowledge and experience of different people
who are experts in their respectful fields with
a view to solving complex problems. It
therefore enables a problem situation to be
looked at from different points of view
making it easier to find an optimum solution.

Advantages of off the job
training
 Training is handled by experts therefore,
employees will benefit more.
 There is motivation and the employees
appreciate being provided with skills away
from the organization. It is exciting and
viewed as a treat.
 Employees can get exposure especially
where the training is involving employees
from other organizations because of sharing
of experiences.

 There will be no work interruptions
therefore, managers can concentrate on
their jobs.
 It is free from pressures of work
environment
 No risk of damaging valuable
equipment.

Disadvantages
 It can be too costly
 Interruption of work
 No control over participants when attending
training
 It can expose the employees to things that
are not favourable to the organization. Can
enlighten the employees against the
organization.
 Some times the transfer of learning is
difficult.

PERFORMANCE
MANAGEMENT
 Performance management is a strategic
and integrated approach to delivering
sustained success to organizations by
improving the performance of the
people who work in them and by
developing the capabilities of teams and
individual contributors.

 Performance is a record of outcomes
achieved. Performance management is
a means of getting better results from
the organization, teams and individuals
by understanding and managing
performance within an agreed
framework of planned goals, standards
and competence requirements.

 It is a process of establishing shared
understanding about what is to be
achieved, and an approach to managing
and developing people in a way that
increases the probability that it will be
achieved in the short and longer term.

Components of
Performance Management
 Goal setting
 Performance appraisal
 Training programmes
 Performance-related pay

Principles of performance
management
 It translates corporate goals into
individual, team, department and divisional
goals
 It helps to clarify corporate goals
 It is a continuous and evolutionary process
in which performances improves over time
 It relies on consensus and cooperation
rather than control or coercion

 It encourages self-management of
individual performance
 It requires management style that is
open and honest and encourages two-
way communication between superiors
and subordinates
 It requires continuous feedback

 Feed back loops enable the experience
and knowledge gained on the job and
individuals to modify corporate objectives
 It measures and assess all performance
against jointly agreed goals
 It should apply to all staff; and it is not
primarily concerned with linking
performance to financial rewards.

PERFORMANCE
APPRAISAL
 Performance appraisal involves
measuring the performance of
employees. It is concerned with
determining how well employees are
doing their jobs, communicating that
information to the employees and
establishing a plan for performance
improvement.

Reasons for Performance
Appraisal
 For making administrative decisions relating
to promotions, firings, layoffs and merit pay
increases. It helps a manager decide what
increases of pay shall be given on grounds
of merit.
 For determining the future use of an
employee.
 Appraisal can provide needed input for
determining both individual and
organizational training and development
needs, through identifying strengths and
weaknesses.

 Appraisal encourages performance improvement.
They may motivate the employee to do better in
his current job due to knowledge of results,
recognition of merit and the opportunity to discuss
work with his manager.
 Appraisals help to identify an individual’s current
level of performance.
 Information generated by appraisal can be used as
an input to the validation of selection procedures.
 Appraisal information is an important input to
human resource planning and succession planning,
career planning and so on.

PERFORMANCE
APPRAISAL METHODS
 GOAL - SETTING OR MANAGEMENT BY
OBJECTIVES
 This is more commonly used with
professional and managerial employees.
 The MBO process consists of the following
steps:-
 Establishing clear and precisely defined
statements of objectives for the work to be
done by an employee.
 Developing an action plan indicating how
these objectives are to be achieved.

 Allowing the employee to implementing
the action plan
 Measuring objective achievement
 Taking corrective action when
necessary
 Establishing objectives for the future.

MULTI-RATER
ASSESSMENT
 This is currently a very popular
method of performance appraisal.
It is also known as 360-degree
feedback. 360-degree feedback is
the systematic collection and
feedback of performance data on
an individual or group derived from
a number of the stakeholders on
their performance.

 With this method, managers, peers,
customers, suppliers or colleagues are
asked to complete questionnaires on
the employee being assessed. The
person being assessed also completes a
questionnaire. Data on ones
performance is analysed and the result
shared with the employee appraised,
who in turn compares the results with
his assessment.

RANKING METHODS
 The core element of the use of rankings is
that employees are compared to each other,
and given some number that supposedly
indicates whether they are better than, about
the same or less effective than their
colleagues. In ranking methods, especially
the simplest form, the supervisor lists all
subordinates in order, from the highest to the
lowest in performance.

Types of ranking methods
 Straight ranking method
 Paired comparison method
 Alternation ranking method

RATING SCALES
 GRAPHIC RATING-SCALE
 With this method, the rater assesses an
employee on factors such as quantity of
work, dependability, job knowledge,
attendance, accuracy of work and
cooperativeness. Graphic rating scales
include both numerical ranges and
written descriptions.

WORK STANDARDS
APPRAISAL APPROACH
 This approach is used most frequently for
production workers, and is basically a form of
goal setting for these employees. It involves
setting a standard or an expected level of
output and then comparing each employee’s
performance to the standard. Work standards
should reflect the average output of a typical
employee. Work standards attempt to define
a fair days work.

ESSAY APPROACH
 This requires that the evaluator describe an
employee’s performance in written narrative
from. A typical essay appraisal question might
be “Describe, in your own words, this
employee’s performance, including quantity
and quality of work, job knowledge and
ability to get along with other employees.
What are the employees strengths and
weaknesses?’

CRITICAL – INCIDENT
APPRAISAL
 This requires the evaluator to keep a
written record of incidents as they
occur. The incidents recorded should
involve job behaviours that illustrate
both satisfactory and unsatisfactory
performance of the employee being
rated. The recorded incidents provide a
basis for evaluating performance and
providing feedback to the employee.

THE CHECKLIST
 In the checklist method, the rater
makes yes-or-no responses to a
series of questions concerning the
employee’s behaviour. The checklist
can also have varying weights
assigned to each question.

ASSESSMENT CENTRES
 This is a special form of appraisal intended to
identify potential for promotion. It consists of
a series of exercises such as leaderless group
discussions, role-playing, business games and
ten-minute speeches. A group of candidates
is brought together at a fairly isolated spot
where they go through the exercises over a
period of one to three days. They are judged
by assessors who are usually managers of the
company who have received appropriate
training.

THE OPEN-ENDED
METHOD
 This is a recent innovation, introduced
because of dissatisfaction with rating
scales. The method emphasizes the
way the job is performed and expects
the manager to write a few sentences
about the subordinate rather than pick
ticks in columns.

ERRORS IN PERFORMANCE
APPRAISAL
 The Halo error
 The halo effect occurs when a manager rates
an employee high on all items because of one
characteristic. For example, if a worker has
few absences, her supervisor might give her
a high rating in all other areas of work,
including quantity and quality of output,
because of her dependability. The manager
may not really think about the employee's
other characteristics separately.

 The opposite of a halo error is a
horn error, where negative
performance in one dimension
influences any positive aspects
of the employee's performance.

The Leniency Error
 The process of being 'too easy'.
Leniency bias may exist because
supervisors are concerned about
damaging a good working relationship
by giving an unfavourable rating. Or
they may wish to avoid giving negative
feedback, which is often unpleasant, so
they inflate the ratings.

The Error of Strictness
 At the opposite extreme of leniency is the
error of strictness in which ratees are give
unfavourable ratings regardless of
performance level. Raters with low self-
esteem or raters who have personally
received a low rating are most likely to rate
strictly. Rater training, which includes reversal
of supervisor subordinate roles and
confidence building, will reduce this error.

The Central Tendency
Error
 Rather than using extremes in ratings, there is a
tendency on the part of some raters to evaluate all
ratees as average even when performance actually
varies. This bias is referred to as the error of central
tendency. Raters with large spans of control and little
opportunity to observe behaviour are likely to rate
the majority of employees in the middle of the scale,
rather than too high or too low. This is a 'play-it-safe'
strategy. Central tendency can also be a by-product
of the rating method. The forced-distribution format
requires the most employees be rated 'average'.

The Recency error
 As the typical appraisal period [six months to
a year] is far too long for any rater to
adequately remember all performance-
relevant information. As the appraisal
interview draws near, the rater searches for
information cues as to the value of
performance. Unfortunately, recent
behaviours or outputs are more salient. As a
result, recent events are weighted more
heavily than they should be.

 Called the recency of events error, this bias can have
serious consequences for a ratee who performs well
for six months or a year but then makes a serious or
costly error in the last week or two before
evaluations are made.
 Employees and managers can minimise this error by
keeping ongoing behavioural or critical incident files
in which good and poor behaviours and outputs are
recorded. Although time consuming, they ensure that
information for the entire period is incorporated into
the appraisal.

The Contrast Error
 Rating should be done on the basis of
standards that are established before the
rating. The contrast error is the tendency to
rate people relative to other people rather
than to performance standards. For example,
if everyone else in a group is doing a
mediocre job, a person performing somewhat
better may be rated as excellent because of
the contrast effect.

COMPENSATION
 Compensation or remuneration refers to all
the extrinsic rewards employees receive in
exchange for their work. Compensation and
pay are not synonymous terms. Pay refers
only to the actual shilling, dollar, pound that
employees receive in exchange for their work.
Usually compensation is seen as consisting of
the base wage or salary, any incentives or
bonuses and any benefits.

 A reward system consists of financial
rewards (fixed and variable pay) and
employee benefits, which together
comprise total remuneration. Total
remuneration is the value of all cash
payments (total earnings) and benefits
received by employees.

COMPONENTS OF A
REMUNERATION PACKAGE
 Base pay/basic salary
 Allowances
 Bonuses
 Incentives
 Commissions
 Employee benefits
 Perquisites/perks

Basic Salary
 This is the major component of
employment compensation package.
Basic salary is worked out on the basis
of job evaluation, and is adjusted either
because of reclassification or changes in
the cost of living index. Basic salary is a
range with top and base clearly defined.
 Basic salary is the fixed salary or wage,
which constitutes the rate for the job.

Allowances
 Some of the well-known allowances include; house
rent, travel allowance, daily allowance, hardship
allowance, shift allowance, and so on. The concept of
allowance is based on the cost of living index and are
meant to compensate for the extra efforts needed for
one to perform normal duties. Allowances can be
added to the basic pay depending upon the
contingencies of the job. The exact quantum of most
allowances is usually linked to the basic salary as
they present a percentage of the basic salary.

Bonuses
 This is a reward for good
performance, which is paid in lump
sum related to the results obtained
by individuals, teams or the
organization. Bonus is seen as
profit sharing and focuses on
improving productivity for both
employer and employee.

Perquisites
 Perks are those benefits that do not usually
come in the form of cash but are provided to
maintain certain needs and status of the
employee, and image of the organization.
These may include perks such as stock
options, club membership, car or housing
loans, reimbursement of the cost of children’s
education, paid holidays, generous medical
benefits, furnishing of residence and many
others.

Incentives
 These are payments linked to the
achievement of previously set
targets, which are designed to
motivate people to achieve higher
levels of performance. Targets are
usually quantified as output, sales
and so on.

Commissions
 A special form of incentive in
which payments to sales
representatives are made on
the basis of a percentage of the
sales value they generate

Objectives of a
compensation policy
 From the view point of employers
 Employers can systematically estimate labour
costs and exercise perfect control over labour
costs
 Employers can influence and explain trade
union members as well as employees the
basis of wage programme because its based
on systematic analysis of job components and
wage facts

 A sound wage administration can go a long
way in reducing friction and grievance of
employees over wage differentials and
inequalities
 Good salary administration attracts highly
qualified people into organization
 A sound salary administration is necessary for
building up morale and raise motivation of
employees.

From employees point of
view
 Under a good salary administration
employees are paid equitably i.e. they are
paid according to their skills and abilities
 Favourism is considerably reduced when
wage and salary administration is good
 Employees motivation is enhanced and
morale is stepped up when administration of
salary is effective

FACTORS INFLUENCING WAGE
AND SALARY STRUCTURE
 Firms’ capacity to pay
 Demand for and supply of
labour
 Existing market rate
 Cost of living
 Living wage

 Job requirements
 Government policies
 Productivity of labour
 Managerial attitudes
 Psychological and social factors
 Trade union bargaining power

INDUSTRIAL RELATIONS
 Industrial relations is the study of bargaining
relationship between employees and
employers.
 The continuous relationship between a
defined group of employees and
management.
 The field of industrial relations looks at the
relationship between management and
workers, particularly groups of workers
represented by a union

WHAT IT INVOLVES
 Employment and employment
regulations
 Trade unionism
 Grievance and grievance handling
procedures
 Discipline and disciplinary action
 The laws governing all above

 The industrial relations can be
seen as a system which
contains three actors:
 The trade Unions
 The employers associations
 The government

Trade unions
 This is a voluntary association
of employees formed to protect
and promote on their interests
through collective action

Principles of trade unions
 Unity is strength
 Equal pay for equal work
 Security of service

 Participation of the trade unions in
industrial relations can take
different forms, from collective
bargaining to strikes. Trade Unions
find their legitimate and strength to
take part in these negotiations from
their members.

Reasons for joining trade
unions
 To get economic security ensure steady flow of
income
 To restrain management from taking any action
which is irrational, illogical, discriminatory or
detrimental to interests of employees
 To restrain management in showing favoritism in the
assignment of duties and responsibilities, transfers,
promotions, and maintenance of discipline in some
corners at cost of other units. Also in issues of
layoffs, retirements, rewards and punishment so that
there is no bias in all these aspects

 To fall inline with other workers in a better way and
to gain respect in the eyes of their peers
 Secure protection from economic hazard beyond their
control e.g. accidents, death, unemployment, old age
etc
 To communicate their aims, ideas, feelings, views,
dissolutions, frustrations and dissatisfaction with
management and organizations
 To get a job through good offices of trade unions

Objectives of trade unions
 To secure and if possible improve
living standard and economic status of
its members
 To enhance and if possible guarantee
individual security against threats and
contingencies that might result from
market fluctuations, technological
change or management decisions

 To influence power relations in social systems
in ways that favour and do not threaten
union gains or goals
 To advance the welfare of all employees who
work for a living whether union members or
not
 Create mechanisms to guard against the use
of arbitrary and inhuman policies and
practices in work place

Methods used by trade unions in
achieving objectives
 a) Negotiated agreements with
management
 These negotiations deal with salaries, wages,
hours of work, terms and conditions of
employment, personal and job security,
employee benefits and services, medical care,
retirement benefits etc
 b) Collective bargaining
 A trade union achieves its objectives through
collective bargaining

 c) Grievance processing and
handling procedures
 A trade union should see that a proper
grievance processing and reddressal
procedures is existing within the
organization and as soon as grievance
reaches C.E.O it’s dealt with
satisfactorily

 d) Arbitration
 It is a process by which unsettled or
unresolved dispute can be solved or settled
by an outside agency.
 e) Insurance
 Mutual insurance through common
contribution is another way to achieve the
union objectives especially regarding financial
needs of workers when there is stoppage of
work e.g. due to strikes

 f) Political pressure
 This is another source with help of which
pressure is exercised through legislators who
are capable of bringing about changes in
labour laws
g) Recruitment
 Through a special arrangement, a trade union
may exercise some control over hiring,
supervision and discharge of workers

Collective Bargaining
 This is a process by which
employers and representative of
employees attempt to arrive at an
agreement covering the conditions
under which employees will
contribute and be compensated for
their services.

 It is called collective because both
employer and the employee act as a
group rather than individuals. It is
described as bargaining because the
methods of reaching an agreement
involves proposals and counter
proposals, offers and counter offers.

 Bargaining means the process
of cajoling, debating,
discussing, and threatening in
order to bring about a
favourable agreement for those
concerned.

Types of bargaining
 Distributive bargaining
 This is a straight out haggling, over the
disturbance of a pie. Here, economic
issues like wages and salaries and
remuneration are, discussed. Under
distributive bargaining one party’s gain
is another party’s loss.

Integrative bargaining
 This is a negotiation of an issue on
which both parties may gain or at least
neither one looses. Discussion over a
better job evaluation system or better
training employees are e.g. of
integrative bargaining win-win/loss-loss
situation.

Attitudinal structuring
 Here, some attitudes like trust or
distrust, friendliness or hostility
between labour and management are
shaped and reshaped. When there is a
back log of bitterness between both
parties, industrial relations could not be
smooth and harmonious. Collective
bargaining in terms of attitudinal
structuring is called for in this case.

Intra – organizational
bargaining
 This type of bargaining is
necessary when there are
conflicts between various
groups in the organization.

UNFAIR LABOUR
PRACTICES - EMPLOYER
• To interfere with, restrain, or
coercing employees in exercising
their legally sanctions rights of self
organisation.
• For company representatives to
dominate or interfere with either the
formation or the administration of
labour unions.
 Discriminating employees for their
legal union activities

 Discharging or discriminating against
employees simply because the latter
filed unfair practices against the
company
 Employers refusing to bargain
collectively with their employees’ duly
chosen representatives

UNFAIR LABOUR
PRACTICES - UNIONS
• Refuse to bargain in good faith with the
employer about wages, hours and other
employment conditions.
• Certain strikes and boycotts are also unfair
practices
• Engage in “featherbedding” (requiring an
employer to pay an employee for services not
performed
• Charging excessive or discriminatory
membership fees

 Inducing, encouraging, threatening or coercing any
individual to engage in strikes, refusal to work, or
boycott where the objective is to:
 Force or require an employer or self employed
persons to recognize or join any labour
organisations
 Force or require an employer to cease using
products or doing business with another person
 Force an employer to apply pressure to another
employer to recognize a union which is not in your
industry

THE RIGHTS OF AN EMPLOYEE
IN INDUSTRIAL RELATIONS
 To belong or not to belong to a union
(except for union shops)
 Employees can present grievances
directly to an employer
 Employees authority to make any
subtraction of union dues from his/her
pay cheque

 Nominate candidates for union
office
 Vote in union elections
 Attend union meetings
 Examine the union accounts and
records

EMPLOYEE HEALTH AND
SAFETY
 Industrial accidents
 It is defined by Occupational Health and
Safety Act as an occurrence in an industrial
establishment causing bodily injury to a
person which makes him unfit to resume his
duties in the next 48 hours. It is an
occurrence which interrupts or interferes with
orderly progress of work in an industrial
establishment

Causes of industrial
accidents
 Work-related causes
 These include also referred to as unsafe
conditions of work
 Unsafe and defective equipment
 Hazardous arrangements or procedure
in or around the machines and
equipment
 Inadequate safety devices

 Improper lighting
 Poor house keeping
 Improper/inadequate ventilation/air
pollution
 Improperly guarded equipment
 unsafe storage, congestion, overloading
etc

Unsafe acts
 Accidents may be also result of unsafe acts
on the part of employees. Lack of knowledge
or skill in handling the equipment, physical
incapacities, and wrong acts of employees
result on industrial accidents. These unsafe
acts include:
 Failure to use safety/protective equipment
provided by the organization
 Making safety devices inoperative by
adjusting, removing or disconnecting them
 Using unsafe equipment

 Throwing materials on floor carelessly
 Failure to consider safety warning in works
spot
 Using unsafe procedures in handling,
unloading, combining and mixing etc
 Improper cleaning, oiling, repairing etc of the
dangerous equipment
 Destructions, teasing, abusing, quarreling and
day dreaming on part of employee

Psychological causes
 Fatigue
 Anxiety
 Tiredness
 Overwork
 Monotony
 Boredom
 Lack of self confidence
 Frustrations

Environmental causes
 Slippery floors
 Rough floors
 Fumes etc
 Excessive lights
 Humidity
 Dust

Safety programme
 Safety program should have top
management approach and support
 Supervisory personnel should be entrusted
with responsibility of a safety program
 Safety should be given due consideration
like other areas such as wages and salary
administration, recruitment, selection,
training etc

 A definite safety program should be
developed to educate all employees in safety,
and to secure their active cooperation in
order to eliminate industrial accidents
 In all phases of management like planning,
organizing, procurement of raw materials,
supervision and operation safety should be
included

Occupational Safety and
Health Act, 2007
 Cleanliness (Section 47) – Every factory
should be kept in a clean state, and free from
stench arising from any drain, sanitary
convenience or other nuisance. Accumulation
of dirt and refuse shall be removed daily by
some effective method. The floor of every
work room shall be cleaned at least once in
every week by washing or by any other
method. All inside walls, partitions, ceilings,
stair cases to be washed at least once in
every period of one year or 5 years if they
are kept painted with oil paint or varnished.

 Overcrowding (Section 48) – There
shall be no overcrowding in any room of
the factory so as to be injurious to the
health of the workers employed therein.
Every work room shall not be less than
nine feet in height.

Ventilation (Section 49) – Effective
and suitable provision shall be made for
securing and maintaining the adequate
ventilation of the room for the
circulation of fresh air in each room.

 Lighting (Section 50) – Effective
provision shall be made for securing
and maintaining sufficient and suitable
lighting, whether natural or artificial, in
every part of a factory in which persons
are working or passing.

 Drainage of floors (Section 51) –
Where a floor is liable to become wet in
the course of any manufacturing
process to such an extent as is capable
of being drained, effective means of
drain shall be provided.

 Sanitary conveniences (Section 52)
– Sufficient and suitable sanitary
conveniences for the factory workers
shall be provided, maintained and kept
clean. Separate sanitary conveniences
should be provided for male and female
workers and adequately lighted and
ventilated.

Responsibilities of the
employer in health and safety
 Provide a working environment that is free
from recognized hazards that are causing or
likely to cause death or serious physical harm
to employees and comply with standards,
rules, and regulations
 Familiarize yourself and your employees with
mandatory health and safety standards
 Examine work place conditions to ensure they
conform with applicable standards
 Minimize or reduce safety and health hazards

 Ensure that employees have and use safety
tools and equipment ( including appropriate
personal protective equipment) and that such
equipment is properly maintained
 Employ color codes, posters, labels , or signs
in several languages to warn employees of
potential hazards
 Establish or update operating procedures and
communicate them so that employees follow
safety and health requirements

 Provide medical examinations for trades
required by law
 Refrain from discriminating employees who
properly exercise their rights in health and
safety
 Safety training - should be part of the
orientation programme and at different points
during the employees career – voluntary
training or compulsory training which is
required by government regulations

 Inspection and research – inspect workplace
with the goal of reducing accidents and
illness, carry out accident research
 Rights of the employee
 Employees have a right to seek safe
workplace without fear of punishment.
 Complaining to an employer, union or labour
ministry, or any other relevant government
agency about job safety and health hazards

 Filing safety or health grievances
 Participating on workplace safety and
health committees or in union activities
concerning job safety and health
 Review copies of appropriate workplace
standards, rules and regulations, and
requirements that the employer should
have available in the workplace

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