Human Resource Mgmnt 1

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    KENYATTA UNIVERSITY

    INSTITUTE OF OPEN LEARNING

    STC-C-205/CBA 502

    HUMAN RESOURCE MANAGEMENT 1

    LUCY MUGWERE

    DEPARTMENT OF BUSINESS ADMINISTRATION

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    TABLE OF CONTENTS

    LESSON 1 INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

    LESSON 2 WHAT IS HUMAN RESOURCE MANAGEMENT

    LESSON 3 HISTORY AND GROWTH OF HUMAN RESOURCE

    MANAGEMENT

    LESSON 4 HUMAN RESOURCE PLANNING

    LESSON 5 JOB ANALYSIS

    LESSON 6 THE RECRIUTMENT AND SELECTION PROCESS

    LESSON 7 TRAINING AND DEVELOPING HUMAN POTENTIAL

    LESSON 8 PERORMANCE APPRAISALS

    LESSON 3 JOB ANALYSIS

    LESSON 4 HUMAN RESOURCE PLANNING

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    LESSON5 RECRUITMENT AND SELECTION

    LESSON 6 TRAINING AND DEVELOPMENT

    LESSON 7 PERFORMANCE APPRAISAL SYSTEMS

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    INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

    Preface

    This module aims at providing all students undertaking to study Human Resource

    Management and all practicing managers with a complete, comprehensive review of

    essential Human Resource Management concepts and techniques in a simple, reader

    friendly, understandable yet concise manner.

    While the module focuses almost entirely on essential Human Resource Management

    topics like Job Analysis, Human Resource planning, Compensation, Training

    Recruitment and Selection , practical applications such as how to conduct a job analysis

    exercise , how to conduct human resource planning exercise or how to establish a pay

    plan are used throughout the module to provide students with practical, hands-on human

    resource management skills that they will find useful when practicing in the real world.

    This is a book about managing people or what is now known as Human Resource

    Management (HRM). HRM is a management discipline aimed at improving

    organizational effectiveness by utilizing a firms human resources. Its also about

    managing in a changing world .In the past managers aimed for success in a relatively

    stable and predictable world. Today however in the hyper turbulent environment of the

    twenty-first century managers confront accelerating change. They are facing constant

    innovation in computer and information technology and a chaotic world of changing

    markets and consumer lifestyles. Todays organization must be able to transform and

    renew to meet these changing forces.

    The subject of human resource management covers a combination of wide areas. It

    borrows from psychology, business organization, training of industrial relations. This

    wide range of subject matter causes problems for the student i.e that the core reality for a

    human resource management unit is usually scattered over numerous text books. This is a

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    problem especially in our public universities which are still short of good HRM text

    books.

    In writing this module it is my belief & hope though that this course / book will provide a

    strong foundation in human resource management not only to the students undertaking

    HRM or to the HR managers out there but to all those who are in the business of

    managing people.

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    INTRODUCTION

    An organization is nothing without human resources. What is Kenya Breweries

    without its employees? A lot of factories, expensive equipment and some impressivebank balances. Similarly if you remove the employees from such varied organizations

    as Coca-Cola, Microsoft, and Toyota what would you have left? Not much.

    The above paragraph is meant to dramatize something that most of us take for granted.

    When you think of about the millions of organizations that provide us with goods and

    services, any one or more which may probably employ you during your lifetime, how

    often do you explicitly consider that these organizations depend on people to make

    them operate? It is only under unusual circumstances like when the teachers in public

    schools went on strike and the children were not being taught or when the lecturers

    went on strike and no learning was taking place at the University or when the city

    council workers went on strike and our streets were filled with filth that we recognize

    the important role that employees play in making organizations work.

    But how were these people in these organizations found and selected? Why do they

    come to work everyday? How do they know what to do in their jobs? How does

    management know the workers are performing effectively? How do we decide how

    much to pay each worker or each manager? Will todays worker be prepared for work

    that will be expected of him in twenty, thirty years from now?

    These are some of the questions whose answers lie in the subject of Human Resources

    Management.

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    LESSON 2 WHAT IS HUMAN RESOURCE MANAGEMENT

    Objectives: By the end of this lesson the student should be able to explain what Human

    Resource Management is and give an appropriate definition of HRM.

    To understand what Human Resource management is we must first review what

    managers do. Most experts agree that management is getting work done through others

    Management can be said to be the process of getting activities completed with and

    through people .Most experts also agree that there are 5 basic functions all managers

    perform: planning, organizing, staffing, leading and controlling. In total these functions

    represent the management function.

    Some of the specific activities involved in these functions include:

    Planning: Establishing goals and standards, developing rules & procedures; developing

    plans and forecasting-predicting or projecting some future occurrence

    Organizing: Giving each subordinate a specific task; establishing departments,

    delegating authority to subordinates, establishing channels of authority and

    communication; coordinating the work of subordinates

    Staffing : Deciding what type of people should be hired; recruiting prospective

    employees, selecting employees, setting performance standards, compensating

    employees, evaluating performance; counseling employees; training and developing

    employees

    Leading:Getting others to get the job done; maintaining morale; motivating subordinates

    Controlling: Setting standards such as sales quotas, quality standards or production

    levels; checking to see how actual performance compares with these standards; taking

    corrective action

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    In this module we are going to focus on one of these functions: the staffing function,

    Personnel Management or as it is usually called today Human Resource Management.

    Human resource management refers to the practices and policies you need to carry out

    the people or personnel aspects of your management job. These include:

    Conducting job analysis (determining the nature of each employees job)

    Planning labor needs and recruiting job candidates

    Selecting job candidates

    Orienting and training new employees

    Managing wages and salaries (how to compensate employees)

    Providing incentives and benefits

    Appraising performance

    Communicating (interviewing, counseling ,disciplining)

    Training and developing

    Building employees commitment

    Human Resources Management (HRM) concerns the human side of the management of

    enterprises and employees relations with their firms. Its purpose is to ensure that the

    employees of a company i.e its human resources are used in such a way that the employer

    obtains the greatest possible benefit from their abilities and the employees obtain both

    material and psychological rewards from their work. Human Resources management is

    based on the findings of work psychology and uses the techniques and procedures known

    collectively as personnel management i.e that part of human resource management

    concerned with staffing the enterprise, determining and satisfying the needs of people at

    work and the practical rules and procedures that govern relationships between employees

    and the organization.( Graham & Bennett,1998)

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    Human Resources Management can also be defined as the management of activities

    undertaken to attract, develop, motivate and maintain a high-performing workforce

    within the organization. HRM involves moving towards corporate excellence by

    integrating the desires of individuals for growth and development with organizational

    goals. (Bowin & Harvey, 2001)

    It is people who design and produce the goods and services, maintain quality, market the

    goods and services, use financial resources and develop strategies and objectives for the

    organization. Without an effective workforce it would be impossible for an organization

    to achieve its objectives. The HR managers role is to develop an effective relationship

    between the organization and its employees.

    Human resource management efforts, then, are planned, systematic approaches to

    improving organizational performance. They involve HRM programs aimed at the total

    organization or to relatively large segments of it .The purpose of HR programs is to

    increase the effectiveness of the system and also to develop the potential of all individual

    members. There are a series of planned HRM activities which will ultimately influence

    the productivity of the organization .These human resource activities will be discussed in

    the succeeding lessons of this module.

    Decenzo (1993) gives a somewhat similar definition of Human Resources Management

    by saying that it is a process consisting of the acquisition, development, motivation, and

    maintenance of human resources.

    We can elaborate further on this definition of Human Resources management .Let us

    reflect on the major activities existing within the functions of acquisition, development,

    motivation and maintenance.

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    ACQUISITION

    - Human ResourcePlanning

    - Recruiting-Internal- External

    - Employee

    Socialization

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    Why is Human Resource Management Important to All Managers

    Why are these concepts and techniques important to all managers?

    Perhaps its easier to answer this by listing some of the personnel mistakes you dont

    want to make while managing:

    For example you dont want:

    To hire the wrong person for the job- have someone who cannot perform or who

    cannot fit in the organization

    To experience a high turnover due to poor policies because this is expensive to the

    company

    To find your people not doing their best because they are not trained or motivated

    To waste you time on useless interviews

    To have your company taken to court for flouting the safety laws

    To have some of your employees demoralized because they think their salaries are

    unfair and inequitable

    To allow a lack of training to undermine your organizations competitiveness

    To commit any unfair labor practices.

    Carefully studying this book will help you avoid mistakes like these.

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    SUMMARY

    Human resource management is an important subject .It is important because human

    resources are the critical element to the organization .Without an effective workforce it

    would be impossible for the organization to achieve its goals.

    We can define human resource management as the management of activities undertaken

    to attract, develop, motivate and maintain a high performing workforce within the

    organization. HRM involves moving towards corporate excellence by integrating the

    desires of individuals for growth and development with organizational goals.

    There are basic functions all managers perform: planning, organizing, staffing, leading

    and controlling. These represent what is often called the management process. Staffing is

    the function focused on in this module. It includes activities like recruiting, selecting,

    training, compensating, appraising and developing.

    HR management is very much a part of every line managers responsibilities .These HR

    responsibilities include interviewing, orienting, training and compensating to improve theworkers job performance.

    The HR Manager and his her department carry out three main functions .First the HR

    Manager exerts line authority in his or her unit and implied authority elsewhere in the

    organization .He or she exerts a coordinative function to ensure that the organizations

    HR objectives are coordinated and implemented .And he or she provides various staff

    services to line management for example the HR Manager assists in the hiring, training,

    evaluating ,rewarding ,promoting and disciplining of employees at all levels

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    REVIEW QUESTIONS

    1. Explain what Human Resource Management is and how it relates to the

    management process

    2. Define Human Resource Management

    3. Why is Human Resource Management important to all managers?

    4. Present examples of how HRM activities are used in an organization you work for

    or know about.

    5. Give examples of HRM activities that are carried out by line managers.

    6. The Human Resource Manager and his department carry out three distinct

    functions .Describe these.

    7. Distinguish between the line and staff aspects of HRM

    8. Why is the acquisitionphase important in HRM?

    9. Why is the developmentphase important in HRM?

    10. Why is the motivationphase important in HRM?

    11. Why is the maintenancephase important in HRM?

    DISCUSSION QUESTIONS1. Discuss and explain the basic HR functions

    2. Discuss exactly which HR management activities are carried out by line managers

    and staff managers. Using examples discuss the cooperative line staff human

    resource management.

    3. What is HRs role in todays organization?

    4. Working individually or in groups discuss how modern trends like globalization,

    information technology have affected organizations and the way they are

    managed

    5. How can HR contribute to giving a company a competitive edge?

    6. People who are having trouble performing should be transferred to the Personnel

    Department. Do you agree or disagree

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    7. .In organizations that you have worked for, how have you seen the major

    personnel functions being performed?

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    LESSON 3 THE HISTORY AND GROWTH OF HUMAN

    RESOURCE MANAGEMENT

    Objective: By the end of this lesson students will be able to describe how the field of

    human resource management emerged and how it has evolved

    Introduction

    Human resources management emerged from personnel management which itself

    developed from the activities of industrial welfare workers in the latter half of the

    nineteenth century. Throughout the history of HRM a single common factor has beenparamount namely the needs of people at work.

    The foundation of modern HRM emerged from several interrelated sources. These

    include conflict management associated with the tensions and contradictions which are

    inherent in the employment relationship and the increased specialization of labor related

    to the growth in the scale of work organizations ,the scientific approach of management

    to managing people ,the empire building activities of the specialists and the

    employment related law of the last three decades .

    Stages In The History Of Human Resource Management

    The first stage of development involved a handful of employers and philanthropists who,

    driven by the desire to improve the conditions of people at work, initiated various

    programs for bettering physical working environments and the quality of working life.

    Stage two may be said to have emerged during the First World War when faced with

    acute labor shortages and the urgent need to increase industrial productivity, governments

    in Europe and the USA actively encouraged the systematic study of employer employee

    relations and the human aspects of industrial work. This led to a fresh understanding of

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    labor management problems and hence to a more technical and sophisticated approach to

    the personnel officers role.

    The third stage was characterized by the advancement in the 1930s and 40s of various

    academic theories of management and the integration of management studies into general

    social science

    By the 1960s specializations had developed within the personnel function which itself

    had become recognized as a valuable discipline in its own right applicable to all forms

    and sizes of business and work situation.

    Company personnel policies and procedures now encompassed recruitment and selection,

    training, industrial relations, labour planning, salary administration and employee

    appraisal.

    Intense business competition in the 1980s and 1990s, the introduction of new

    production technologies which depended heavily on multi skilled flexible working

    practices frequently involving team working, and changing cultures at both the national

    and individual enterprise levels, catapulted personnel management to increasingly critical

    positions within firms. Personnel work became associated with wider business functions

    and with business strategy in the round. Inevitably, therefore, personnel managers were

    more and more involved with general business management and concerned with profit.

    maximizing activities such as staff motivation, performance management, empowerment

    of workers total quality management (TQM), organizational modification and so on.

    Human resourcing decisions had to be taken at the very top level of management within a

    company.

    The history of human resource management reflected prevailing beliefs & activities held

    in society about employees, the response of employers to public policy, reactions to trade

    union growth and reactions to a hyper turbulent environment of the twenty first century

    where managers confront accelerating change.

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    Evolution Of Human Resource Management.

    PERSONNEL TO HRM

    Personnel departments were once called Health and Happiness departments. The

    people assigned to deal with personnel issues were often individuals who were past their

    prime. The personnel department was seen as a place where less productive employers

    could be placed with minimal damage to the organizations ongoing operations.

    Individuals in the personnel department were perceived as those responsible for planning

    company picnics, vacation schedules, Christmas parties & retirement parties. Personnel

    as an activity was seen as a necessary but unimportant part of the organization.

    Yet as the field of management begun to mature, more emphasis was being placed on the

    workers. Various studies revealed that recognizing workers for the work they had done

    could influence their productivity.

    Workers were becoming more demanding in what they wanted from a job and society by

    means of law and legislation was placing new demands on employers.

    Examples of historical influences on the discipline of Personnel Management:

    1911 Fredrick Taylor Publishes Principles of professional management

    1946 Employment Act was passed

    1963 Equal pay act

    1964 Civil Rights Act

    1967 Age discrimination in Employment Act

    1973 Health maintenance organization Act

    1974 Employee Retirement income Security Act.

    1986 Tax Reform Act

    Events such as these mandated changes in personnel practices.

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    No longer could the personnel department be treated as a detour on the road to success.

    Organizations had to hire the best qualified candidate without regard to race, religion,

    color, sex or national origin.

    The individual hired needed to be trained to function effectively within the organization.

    Furthermore once hired and trained the organization had to provide a means of

    continuing the personal development of each employee. Practices were needed to ensure

    that these employees maintained their productive affiliation with the organization. Finally

    work conditions had to be established such that the work environment induced workers to

    stay with the organization and simultaneously attracted new applicants to the

    organization.

    In the past, managers aimed for success in a relatively stable and predictable world, today

    however in the hyper turbulent environment of the twenty - first century managers

    confront accelerating change. They are facing constant innovation in computer and

    information technology and a chaotic world of changing markets and consumer lifestyle.

    Todays organization must be able to transform and renew to meet these changing forces.

    HRM is an emerging behavioral science discipline that provides a set of methodologies

    for systematically bringing about high performing organizations. Human resources

    management has therefore become an increasing important element in organizations

    Robert Reich suggests that in the future the organizations ability to attract, develop and

    retain a talented work force will be a critical factor in developing a high performing

    organization.

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    Personnel Management and Human Resource Management.

    Personnel Management is an important element of the broader subject of HumanResource Management, although in practice the two terms are frequently used

    interchangeably emphasizing the fact that the people employed in a company are

    resources which are at least as important as financial or material resources and must be

    given careful and expert attention.

    The Institute of Personnel & Development has published the following definition.

    Personnel Management is that part of management concerned with people at work and

    with their relationships within an enterprise. Its aim is to bring together and develop into

    an effective organization the men and women who make up an enterprise and having

    regard for the well being of the individual and of working groups to enable them to make

    their best contribution to its success.

    In particular personnel management is concerned with the development and application

    of policies governing

    -human resources planning

    -education and training

    -terms of employment,

    -methods & standards of remuneration

    -working conditions & employee services

    -formal & informal communication and consultation both through the representative of

    employers and employees at all levels throughout the organization.

    -negotiation and application of agreements on wages and working conditions, procedures

    for avoidance and settlement of disputes.

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    The following relationships and differences between Human Resource

    Management (HRM) and Personnel Management may be distinguished.

    1.Personnel Management is practical utilitarian and instrumental and mostly concerned

    with administration and the implementation of policies. Human Resources Management

    conversely has strategic dimensions and involves the total deployment of Human

    Resource within the firm. Thus for example HRM will consider such matters as:

    (i) The aggregate size of the organization labor force in the context of an overall

    corporate plan , design of the organization etc.

    (ii) How much to spend on training the workforce, given strategic on target

    quality levels , product prices, volume of production.

    (iii) The desirability of establishing relations with trade unions from the viewpoint

    of the effective management control of the entire organization.

    (iv) Human asset accounting i.e the systematic measurememt and analysis of the

    costs and financial benefits of alternative personnel policies e,g effects of

    various salary structures and the valuation of the human worth of the

    enterprises employees.

    The strategic approach to HRM involves the integration of personnel and other HRM

    considerations into the firms overall corporate planning and strategy formulation

    procedures.

    The strategic approach to HRM involves the integration of personnel and other HRM

    considerations into the firms overall corporate planning and strategy formulation

    procedures. It is proactive; seeking constantly to discover new ways of utilizing the labor

    force in a more productive manner thus giving business a competitive edge. Practical

    manifestations of a strategic approach to HRM might include

    (i) Incorporation of a brief summary of the firms basic HRM policy into its

    mission statement.

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    (ii) Explicit consideration of the consequences for employees of each of the firms

    strategies and major new projects.

    (iii) Designing organization structures to suit the needs of employees rather than

    conditioning the latter to fit it with the existing form of organization.

    (iv) Having the head of HRM as the firms board of directors.

    More than ever before human resource managers are expected to contribute to

    productivity and quality improvement. The stimulation of creative thinking, leadership

    and the development of corporate skills.

    2. HRM is concerned with the wider implications of the management of change and not

    just with the effects of change on working practices. It seeks proactively to encourage

    flexible attitudes and the acceptance of new methods

    3. Aspects of HRM constitute major inputs into organizational development exercises.

    4. Personnel Management is reactive and diagnostic. It responds to changes in

    employment law, labor market conditions, trade union actions, government codes of

    practice and other environmental influences. HRM on the other hand is prescriptive and

    concerned with strategies, the initiation and the development of the fresh ideas.

    5. HRM determines general policies for employment relationships within the enterprise.

    Thus it needs to establish within the organization a culture that is conducive to employee

    commitment and cooperation. Personnel management on the other hand has been

    criticized for being primarily concerned with imposing compliance with company rules

    aid procedures among employees rather than with loyalty and commitment for the firm.

    6. Personnel Management has shortterm perspectives; HRM has long-term perspectives,

    seeking to integrate all the human aspects of the organization into a coherent whole and

    to establish high level employee goals.

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    7. The HRM approach emphasizes the needs:

    -For direct communication with employees rather than collective presentation

    -To develop an organizational culture conducive to the adaptation of flexible

    working methods

    -For group working and employee participation in group decisions

    -To enhance employees long term capabilities, not just their competence at

    current duties.

    A contentious view of the difference between HRM and Personnel Management is the

    preposition that whereas the latter is pluralistic in orientation, HRM has a unitaristic

    approach.

    Although the term human resources management has been in use since the 1960s the

    work of a number of U.S academics led to the term assuming a new meaning in certain

    contexts in the 1980s & 1990s. This new perspective on HRM emphasizes.

    1. Individualism rather than collectivism resulting from the long term decline in

    the number of employees belonging to trade unions

    2. Wage systems based on personal contracts wherein a workers pay is set thro

    individual negotiation with the firm as opposed to collective bargaining involving

    trade unions.

    3. Increasing levels of casual and part-time employees

    4. The idea that managers and workers have common interests of management and

    workers in achieving company goals

    5. The need for cost-cutting and lean production methods consequent to the ever-

    increasing international business competition

    6. Greater emphasis on interpersonal relationships and communication using the

    latest management techniques

    7. Flexible labor practices

    8. Teamwork

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    Current Trends

    A number of importance factors have altered the scope & nature of human resource

    management in recent years notably the following.

    1. Greater involvement of line managers in personnel management and a greater

    decentralization and devolution of the function. Increasingly the managers are

    required to undertake duties previously completed by personnel specialists. This

    results in part from firms seeking to cut costs through reducing the sizes of their

    personnel departments or partially in consequence of the view that line managers

    ought to be able to complete this work.

    2. Economic recession in the early 1990s the down sizing of organizations and a

    shift in the nature of the relationship between management and labor.

    3. New working methods based on flexible labor practices

    4. Recognition of the importance of a firms human resources as a means for securing

    competitive advantage, spurred on by the success achieved by Japanese

    companies which pay greater attention to the personnel role.

    The Development & Role of Personnel /HRM

    The management of personnel today therefore presents a greater challenge than ever

    before. Each generation of employee is better educated and more enlightened than the

    preceding one. They expect intelligent leadership and more considerable treatment.

    Because of the protection afforded them by their unions and by government legislation.

    the employees of today are able to reject arbitrary on unfair treatment that only few

    decades ago they would have been forced to accept.

    Meeting the growing challenges requires managers to have a through understanding of

    human behavior. They must know how to avoid behavioral problems with subordinates

    and be able cope with those that do arise. If employees are unionized, managers need to

    possess all understanding of labor relations & be able to interpret & administer properly

    the agreement with the union.

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    Most important as a result of the growing body of law relating to personnel management

    it is essential for managers to know what they legally can & cannot do in their relations

    with employers & their unions. Fortunately for managers, a growing body knowledge

    relating to personnel management is continuing to evolve as a result of research and the

    shared experience of practitioners in helping managers to avoid mistakes of the past.

    REVIEW QUESTIONS

    1 Distinguish between Personnel management & Human resource management.

    Why are they both necessary in the organization?

    DISCUSSION QUESTIONS

    1. Personnel and marketing courses are viewed as soft compared with accounting

    finance and statistics. Does that make personnel less relevant to business

    students? Discuss.

    2. The job of a Personnel Manager is one that is given to an individual who has

    trouble performing in the mainstream of the organization of the organizations

    operations. Do you agree or disagree. Discuss.

    3. A manager of marketing or production should not become involved in personnel

    department. Do you agree or disagree? Discuss.

    4. Discuss the difference between a HR greatest & HR specialist.

    Which would you rather be & why?

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    Summary

    Successful management of human resources is essential to organizational success and the

    field associated with it is in a transitional phase that expands the function to include both

    HRM & personnel management. Both Personnel Management & HRM are necessary.

    Though the terms Personnel Management and Human Resource Management are most

    often used interchangeably Personnel Management is an important element of the broader

    subject of Human Resources Management .Though there are some differences both

    emphasize that people are an important resource and must be given careful and expert

    attention.

    Personnel management is a set of activities encompassing the ongoing management of

    the human resources within an organization.

    The need for a separate HR department grows as an organization grows .Personnel /HR

    departments can be highly centralized or decentralized depending upon the size and

    management philosophy of the organization & upon the need for specialized knowledgeof a limited set of activities.

    HR departments are composed of HR generalists and HR specialists. A generalist has a

    broad knowledge of a number of HR activities whereas a specialist has intensive

    knowledge of a limited set of activities.

    An interface between the HR. manager & operating manager creates a point of contact on

    P/HR activities.

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    HRM MODEL

    In recent years there has been relative agreement among HR specialists as to what

    constitutes the field of HRM

    The model that provided the focus was developed by the American Society for Training

    & Development (ASTD). In its study ASTD identified nine human resource areas:

    1. Training and Development focus: - Identifying & assessing and through planned

    learning helping develop the key competencies which enable individuals to

    perform current or future jobs.2. Organization & Development focus : assuring healthy listen and infra unit

    relationships and helping initiate and manage change.

    3. Organization /Job Design focus: defining how tassels, authority and systems will

    be organized and integrated across organization units and in individual jobs.

    4. Human Resource Planning focus: determining organization major human resource

    needs, strategies and philosophies.

    5. Selection and staffing focus: matching people and their needs and capabilities

    with jobs and career paths

    6. Personnel research and information systems for assorting a personnel information

    base

    7. Compensation / benefits focus: providing personal problem solving counseling to

    individual employees

    8. Employees Assistance focus: providing personal problem solving counseling to

    individual employees

    9. Union / Labor Relations focus: assuring healthy / union organization relationship

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    Source: American Society for Training Development models for excellence (ASTD,

    1983)

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    in the organization in terms of how much & low well High productivity is what

    makes an organization thrive without a good product or service to sell. Problems in

    an organization are sure to arise accordingly productivity programs are becoming

    more popular with organizations

    - Readiness for change

    - If one thing in the world would be said to be true is that things will never remain the

    same. Change is a fact of life in both our private & our work lifes

    - Examples eg if you remain a bachelor all your life people may be asking what is

    wrong with you why are you not changing. Change is a part of life thats why many

    of us allowed NARC because we wanted change.

    - At the work site we must be aware that changes will occur. The change ay be subtle

    such as getting a new boss, or it might be a major Endeavour such as an

    organization installing a computer system for the first time autonomy many of the

    manual operators. But change rarely comes easily for everyone

    At the work site we must be aware that changes will occur. The change may be subtle

    such as getting a new boss, or it might be a major endeavor such as an organization

    installing a computer system for the first time automating many of the manual

    operations. But change rarely comes easily for everyone in some cases it is resisted e.g.

    imagine the secretary who has had twenty-five years experience in the organization being

    made to go from a typewriter to a word processor. This can be traumatic and the change

    could be resisted. How do you overcome this resistance? There are a few ways but

    probably the greatest two would be to inform the secretary that the word processor was

    designed to make her job more efficient; it was not designed to take over her job. The

    fear associated with a possible treat to job security would negate any advantage that

    might accrue by automating an office because this fear might manifest itself as decreased

    morale.

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    To reduce the fear associated with change, training is important. Once the secretary had

    been given time to learn how to use the new equipment and to experience how efficient it

    is and how it makes her job easier the fear of change can be reduced. From an

    organizational perspective employers must make changes to remain competitive. But it is

    also their responsibility to communicate the forth coming changes to their employees,

    identify why changes are necessary and lend their total support in ensuring that the

    change takes place. Through this process employers can create a work atmosphere that

    news change as a positive and progressive endeavor.

    In the remaining lessons we will discuss the various activities involved in human

    resources necessary to achieve these outputs. The HRM model presented in figure 1 is

    generic in nature and is too broad for our purposes. Because of the interrelatedness of all

    the human resource functions and the impossible complexing of studying them in that

    state, more specificity is warranted. To accomplish this objective we offer a model that

    represents a more manageable form.

    This model reflects the major activities existing within the functions of acquisition,

    development, motivation and maintenance.

    Earlier we defined HRM as a process consisting of the acquisitions, develop, motivations

    and maintenance. At the hub of this model are the external influences

    -government regulations

    -trade/labor unions

    -management practice

    Remember that human resource activities in any of the 4 functions are constrained or

    guided by these external influences. The outer circle represent the flow of major

    activities in HRM. There is no beginning or end to the HRM process; it is a continual

    process within which each circle are the major sub divisions of each function.

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    Discussion Questions

    In the organization in which you work, how have you seen the 4 functions of HRM beingperformed?

    1.Acquisition HR planningJob analysisRecruitment and selection

    2.Development Employee Training and Mg. Development- Career Development

    3.Motivation Job Design- Performance- Rewarding the production employee

    ACQUISITION

    esourcening.

    - Internalrnal

    ization.

    - Human RPlan- Recruiting

    - Exte

    -Employee SocialC

    MOTIVATION

    -Job Design-Performance Evaluation

    -Rewards-Job Evaluation-Com pensions/benefits-Discipline.

    EXTERNAL

    INFLUENCES

    MAINTAINAN

    E

    -Safety & Health-Employee/laborrelations.

    DEVELOPMENT

    -Employee Training-Management

    Development-Career

    Development.

    4.Maintenance of Human resource - Compensation administration- benefits and services- disciplining the problem employee- safety and health- labor relations collective bargaining

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    LESSON 4 HUMAN RESORCE PLANNING

    Objective: By the end of this lesson students should be able to

    define human resource planning

    explain the importance of human resource planning

    conduct a human resource planning exercise

    explain the benefits of Human Resource Planning

    Njeri : Would you tell me, please which way I ought to go from here?

    Onyango : That depends a good deal on where you want to go.

    Njeri : I dont care where

    Onyango : Then it doesnt matter which way you go!

    Introduction

    Before you can depart on a journey it is necessary to know your destination. The steps

    you take before beginning any trip appear quite simple:

    determining where you are

    determining where you want to go

    finally, suggesting a route that can take you from where you are to

    where you want to be.

    In an elementary form this is what planning is all about:

    Knowing where you are going and how you are going to get there.

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    Importance of Human Resource Planning

    If an organization is to achieve its goals, it needs inputs: financial resources (such asmoney and credit), physical resources (such as buildings and equipment), and people.

    Too often, managers forget about how important that third factor the people variable is to

    the success of an organization. Many managers have failed because they have taken their

    human resources for granted.

    To dramatise the value of the human factor consider for a moment an organization like

    the Xerox Corporation, the duplicating machine company. It is a publicly held company

    whose Stock Exchange has sales of over $11 billion a year and employs over 102,000

    people. The hypothetical questions we pose are these:

    If these 102,000 people were to quit at once, what would happen to the

    organization?

    What would happen to the price of the companys stock?.

    The answers are

    (1) The organizations survival would immediately be in jeopardy.

    (2) The market price of the stock would plummet!

    The point being made is simple:

    Organizations are composed of people and these people represent one of the

    organizations most valuable assets. However because the organization does not own

    people, as it does capital and physical assets, this resource is seldom given proper

    attention.

    To ensure the healthy operation of the organization whether it be a business firm, a

    government parastatal , a university or a professional football team its supply of human

    resources must be sufficient. Towards this objective of continuing healthy operations the

    organization requires human resource planning

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    People represent the most flexible resource available to senior managers of an

    organization. Deploying people in the right numbers, with the right skills and in the right

    place is fundamental to success. The reason that we have had to do so many

    retrenchments in Kenya especially in the public sector is because there was a lack of

    proper human resource planning in the first instance. People were just recruited at

    random without first establishing if there was a real need to employ them in the first

    place. As a result organizations became bloated with excess manpower. It is also the

    reason why donor agencies like the IMF, World Bank have implored the Kenyan

    Government to cut back on staff in some organizations especially those in the Civil

    Service amidst huge protest.

    Human resource planning is one of the most important elements in a successful HRM

    program. A survey of chief executives found that 85% listed HRP as one of the most

    critical management undertakings of this decade. But what does the term human resource

    planning mean?

    Definitions of Human Resource Planning

    Specifically human resource planning is the process by which an organization ensures

    that it has the right number and kinds of people, at the right places, at the right time,

    capable of effectively and efficiently completing those tasks that will help the

    organization achieve its overall objectives.

    Human resource planning then translates the organization objectives and plans into the

    number of workers needed to meet those objectives. Without clear-cut planning an

    estimation of an organizations human resource need is reduced to mere guesswork.

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    In many organizations, few employees outside of the top executive group really know the

    short and long range objectives. It is not surprising, therefore, that management may find

    itself without the necessary human resources to fill unexpected vacancies, makereplacements created by natural attrition or meet opportunities created by the growth or

    development of new products or services because critical human resources are

    unavailable.

    Human resources planning (HRP) may also be defined as an attempt to forecast how

    many and what kind of employees will be required in the future and to what extent this

    demand is likely to be met. It involves the comparison of an organizations current

    human resources with likely future needs and consequently, the establishment of

    programs for hiring, training, redeploying and possibly discarding employees.

    Effective Human Resource Planning should result in the right people doing the right

    things in the right place at precisely the right time.

    Human resource planning or manpower planning as it was originally called had its start

    after World War II in the Industrial Training Boards in Great Britain whose mandate was

    to require effective manpower planning at the industrial level .It resulted from the

    influence of socialistic government policies in England to provide the correct number of

    skilled employees within certain age groups for their national industries.

    Although a few large companies have special departments to develop human resource

    plans and forecasts most companies that employ up to a few thousand cannot afford to

    staff such specialists .In some large companies the responsibility of human resource

    planning is assigned to the Human Resource Manager. However regardless of where

    assigned, if a company is to grow and prosper, the functions of human resource planning

    must be carried out effectively.

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    Human Resource planning systems depend upon three key factors:

    1.Knowledge of the Human Resource Environment: this provides information to answer

    the question, `What has been and is happening to our human resources?` The answer

    resides in the collection and analysis of such factors as labor turnover rates, recruiting

    effectiveness and levels of training .These three factors comprise what is called the

    human resource audit. Other human resource management environment factors that need

    to be considered in the human resource audit are technological and economic changes.

    These changes ,while difficult to quantify must be identified and evaluated.

    2 Knowledge of the present corporate human resources. This is a prerequisite for

    planning for the future The HRM manager must know what skills and potential are

    presently available before beginning to plan. This initial inventory is called the human

    resource inventory.

    3. Knowledge of the present and future objectives of Corporate Planning: this requires

    that business plans and objectives must be expressed in meaningful human resource terms

    For example consider the following : The 5 year objective is to increase our market share

    to 30% at a rate of 6% per year resulting in the bottom line increase of $ 150,000 in sales

    volume .The preceding statement needs to be changed to meet our criteria by reducing

    the expressed needs into an expression of human resource required for each year of the

    planning cycle in terms of type and level of skill. This is essential since such a statement

    of human resource requirements represents the central core of human resource planning

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    Human Resource Planning ProcessCOMPANY OBJECTIVES

    DEMAND FORLABOURHOW MANY?WHAT KIND?WHEN?WHERE?

    SUPPLY OF LABOURPresent supply Minus wastage+ external labor value + fines+ changes in hours, producing or

    working conditions.+ Possible and economic

    increases in supply oflabor e.g. use of part-timeworkers.

    HUMAN RESOURCES PLAN

    Recruitment /redundancy programTraining & Development programIndustrial relations policyAccommodation Plan

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    The Importance of Company Objectives

    The essential first step in company HRP is a statement of company objectives which

    covers products, methods, markets, etc. From this is derived the demand for labor which

    is then related to the supply of labor to produce the human resources plan.

    The implications of the human resources plan must then be considered by the top

    management of the company incase company objectives need amendment for example

    it may not be possible to increase production by the planned amount because labor of the

    kind required is either impossible to train in the time available or does not exist in the

    quantity needed.

    Company HRP needs continuous adjustment because the goals of an organization are

    unstable and its environment uncertain. It is also complex because it involves so many

    independent variables- invention, population changes, consumer demand, foreign and

    domestic competition, etc. It must include feedback because if the plan cannot be

    fulfilled the objectives of the company may have to be modified so that they are feasible

    in human resource terms.

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    Steps In Long-Term Company Human Resource Planning

    In step format the Human Resource Planning process will involve the following steps

    1. The first step in HRP requires

    (a) Assessing the current status of the organizations resources:

    - a human resource inventory describes skills available within

    the organization.

    - A job analysis provides information about jobs currently being

    done.

    -

    2. The second step is to review the organizations overall objectives and revenue

    projections.

    3. The third step translates the organizations revenue projections into a forecast of

    demand for human resources.

    4. The fourth step involves an assessment and forecast of internal and external supply

    sources.

    5. The final step in the human resource planning process consists of matching the

    forecasts of future demand and supply. This will highlight shortages and overstaff

    positions.

    A long term company human resources plan is usually regarded as one which attempts to

    forecast for about 5 years ahead.The company must consider the demand for labor, its potential supply (with corrections

    for its present misuse, overuse or under-use) and the external environment. By studying

    the interaction of all these factors it can then produce a plan showing how many and what

    kind of employees are expected to be required in the future.

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    The main points to be considered are:-

    (a) the creation of a company HRP group including the managers in charge of the

    main functions within the company.

    (b) The statement of human resource objectives in the light of company objectives by

    considering

    - capital equipment plans

    - reorganization e.g. centralization or decentralization

    - changes in products or in outputs

    - marketing plans

    - financial limitations

    (c) The present utilization of human resources in particular

    i) numbers of employees in various categories

    ii) estimation of labor turnover for each grade of employee and the

    analysis of the effects of high and low turnover rates on the

    organizations performance.

    iii) amount of overtime worked

    iv) amount of short-time

    v) appraisal of performance and potential of present employees

    vi) general level of payment compared with that in other firms.

    Note that for all the above accurate and complete personnel records are essential.

    (d) The external environment of the company

    i) recruitment position

    ii) population trends

    iii) local housing and transport plans

    iv) national agreements dealing with conditions of work

    v) government policies in education, retirement, regional subsidies, etc.

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    (e) The potential supply of labor in particulars

    i) effects of local emigration and immigration

    ii) effects of recruitment or redundancy by local firms

    iii) possibility of employing categories not now employed e.g. part-time

    workers

    iv) changes in productivity, working hours and/or practices.

    The Final Company HRP

    After considering and coordinating these factors a human resources plan may then be

    made, showing in detail, by function, occupation and locations, how many employees it

    is practicable to employ at various stages in the future.

    The following should appear in it:

    o Jobs which will appear, disappear or change

    o To what extent redeployment or retraining is possible

    o Necessary changes at supervisory and management levels

    o Training needs

    o Recruitment, redundancy or retirement programs

    o Industrial relations implications

    o Arrangement for feedback in case modifications in the plan or company

    objectives are necessary.

    o Details of arrangements for handling any human resource problems arising from

    labor deficits or surpluses (e.g. early retirement or other natural wastage

    procedures)

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    The Advantages of Human Resource Planning

    These include :

    1. The organization should be better equipped to cope with the human resourcing

    consequences of changed circumstances.

    2. Careful consideration of likely future human resource requirements could lead the

    firm to discover new and improved ways of managing human resources.

    3. Labor shortfalls and surpluses might be avoided

    4. It helps the firm create and develop employee training and management succession

    programs

    5. Some of the problems of managing change may be foreseen and their consequences

    mitigated. Consultations with affected groups and individuals can occur at an early stage

    in the change process: decisions can be taken unhurriedly and by considering all relevant

    options rather being taken in crisis situations.

    6. Management is compelled to assess critically the strengths and weakness of its labor

    force and personnel policies.

    7. Duplication of effort among employees can be avoided i.e. coordination and

    integration of workers efforts is improved.

    When agreed the plan must be communicated to all levels of employees but particularly

    to managers and unions or employee representatives; it is often necessary and advisable

    to negotiate with the trade unions on the detailed implementation of the plan.

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    A short term company HR plan which usually covers a period of up to one year ahead is

    much more common than a long term plan. Many firms do not have the quality of

    management to forecast long-term objectives or they feel that the nature of their business

    makes it impossible to look ahead for more than one year. A short-term manpower plan

    is comparatively easy because a firm will usually make a production or marketing plan

    for a year ahead involving budgets, orders for new materials and components and sales

    quotas. From this can be derived the amount of direct labor and the amount of indirect

    labor may be estimated partly by fixed commitments and partly as a rule thumb.

    Limiting FactorsIn practice human resource planning can be difficult and often inaccurate.

    Chief reasons are:-

    type of industry some depend on new product development or work on

    tendering basis so that plans can only be short term because is never known

    whether a tender will be accepted.

    opposition or skepticism among members of management.

    the difficulty of forecasting social and economic changes

    accurately, positively is an era of high unemployment.

    need to have complete and accurate employee records maintained

    for at least the last 5 years.

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    In more general terms, the possible benefits from a planned approach to the acquisition,

    use and deployment of people throughout the organization include:-

    o appropriately skilled and flexible workforce

    o ability to respond to change

    o stability in the core of the workforce

    o reduced need to recruit externally

    o improved morale and employee relations

    o improvement in quality of products/services

    o higher productivity.

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    Review Questions

    1 Define Human Resource Planning

    2 What is the importance of Human Resource Planning?

    3 What are the benefits of Human Resource Planning?

    Discussion Questions

    1 Explain how as a Human Resource Manager of a large organization how you wouldconduct a Human Resource Planning exercise.

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    LESSON 5: JOB ANALYSIS

    Objectives:By the end of this lesson students should be able to:

    Explain the nature of job analysis

    Explain its purpose and uses

    Describe the methods of collecting job analysis information

    Be able to conduct a job analysis

    Write Job descriptions

    Write Job Specificatons

    Job Analysis Defined

    A Job analysis is a systematic exploration of the activities within a job. Job analysis is

    the procedure for determining the duties and skill requirements of a job and the kind of

    person who should be hired for it.

    The analysis produces information on job requirements which is then used for developing

    job descriptions and job specifications.

    A job description is a list of a jobs duties, responsibilities, reporting relationships,

    working conditions and supervisory responsibilities, reporting relationships, working

    conditions and supervisory responsibilities. It is one product of a job analysis.

    A job specification is another product of job analysis. It is a list of a jobs human

    requirements that is the requisite education, skills, personality and so on. It is another

    product of a job analysis.

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    Job analysis can also be defined as the process of gathering information about a job. It

    provides information in several areas including:-

    How much time is taken to complete basic tasks.

    How are tasks grouped together into a job

    How can a job be designed so that employee performance can be improved?

    What kinds of skills are needed to perform a given job?

    What kind of person is best suited for a certain type of job.

    What group of tasks can be handled by a team or small group?

    Note : This information provides a foundation for other HR activities.

    In simple words we can therefore say that job analysis indicates what activities and

    accountabilities the job entails. There is no mystery to a job analysis; it is just an accurate

    recording of the activities involved

    During job analysis the supervisor or HR specialist normally aims to collect one or more

    of the following types of information:

    1. Work activities information is usually collected on the actual work activities

    performed such as cleaning, selling, teaching or painting. Such a list may also

    indicate how, why and when the worker performs each activity.

    2. Human behaviors information on human behaviors like sensing,

    communicating, decision making and writing may be collected. Included here

    would be information regarding human job demands such lifting weights, walking

    long distances and so on.

    2. Machines, tools, equipment and work aids used. Included here would be

    information regarding products made, materials processed, knowledge dealt with

    or applied (such as finance or law) and services rendered (such as counseling or

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    repairing)

    3. .Performance standards: Information is also collected regarding performance

    standards (in terms of quantity, quality or speed for each job duty for instance) by

    which an employee in this job will be evaluated.

    4. .Job context: - Included here is information about such matters as physical

    working conditions, work schedule, and the organizational and social context for

    instance in terms of the number of people with whom the employee would

    normally have to interact. Also included here might be information regarding

    incentives for doing the job.

    5. Human requirements: - Finally, information is usually compiled regarding human

    requirements of the job such as job-related knowledge or skills (education,

    training, work experience) and required personal attributes (aptitudes, physical

    characteristics, personality, interests).

    Uses Of Job Analysis Information

    The information produced by job analysis is the basis for several interrelated HR

    management activities

    1. Recruitment and Selection

    Job analysis provides information about what the job entails and what human

    characteristics are required to carry out these activities. Such job description and job

    specification information is used to decide what sort of people to recruit and hire.

    2. Compensation

    Job analysis information is also essential for estimating the value of and appropriate

    compensation for each job. This is so because compensation (such as salary and bonus)

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    usually depends on the jobs required skill and education level, safety hazards, degree of

    responsibility and so on all factors that are assessed through job analysis.

    Well also see that many employers classify jobs into categories and job analysis

    provides the information for determining the relative worth of each job so that each job

    can be classified.

    3. Performance Appraisal

    A performance appraisal compares each employees actual performance with his or her

    performance standards. It is often through job analysis that experts determine the

    standards to be achieved and the specific activities to be performed.

    4. Training

    Job analysis information is also used for designing training & development programs

    because the analysis and resulting job description show the skills and therefore training

    that are required.

    5. Ensure complete assignment of duties

    The job analysis is also useful for ensuring that all the duties that have to be done are in

    fact assigned to particular positions. For example in analyzing the current job of your

    companys production manager you may find she reports herself as being responsible for

    two dozen or so specific duties including planning weekly production schedules,

    purchasing raw materials and supervising the daily activities of each of her first-time

    supervisors. Missing, however, is any reference to managing raw material or finished

    goods inventories. On further investigation you find that none of the other manufacturing

    people is responsible for inventory management either. Your job analysis has identified a

    missing duty to be assigned. Missing duties like this are often uncovered through job

    analysis.

    As a result job analysis plays a role in remedying problems of the sort that would arise if

    for example there was no one assigned to manage inventories.

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    Job Analysis Methods

    There are various techniques you can use for collecting information on the duties,

    responsibilities and activities of the job and we will discuss the important ones in this

    section.

    The methods therefore that managers use to determine job elements and the concomitant

    knowledge for successful performance include the following:

    1. Observation Method:

    Using this method, a job analyst watches employees directly or reviews films of workers

    on the job. While the observation method provides first hand information, workers in

    many cases do not function most efficiently when they are being watched. Thus

    distortions in the job analysis may occur. This method also requires that the entire range

    of activities be observable; possible with some jobs but impossible for many e.g. most

    managerial jobs.

    2. Individual Interview Method.

    Using this method job incumbents are selected and extensively interviewed. The results

    of these interviews are combined into a single job analysis. This method is effective for

    assessing what a job entails but is very time consuming.

    3. Group Interview Method.

    This method is similar to the individual interview method except that a number of job

    incumbents are interviewed simultaneously. Accuracy is increased in asserting jobs butgroup dynamics may hinder its effectiveness.

    4. Technical conference Method

    This method utilizes supervisors with extensive knowledge of the job. Here, specific

    characteristics of a job are obtained from the experts. Although a good data gathering

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    method, it often overlooks the incumbent workers perceptions about what they do on

    their job.

    5. Diary Method

    This method requires job incumbents to record their daily activities. It provides much

    information but is seldom applicable to job activities. The diary method is the most

    intrusive of the job analysis methods requiring much work on the part of the incumbent

    and accordingly requiring much time. To capture the entire range of work activities this

    method may have to continue for long periods of time.-all adding to its cost.

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    Steps In Conducting Job Analysis

    The six steps in doing a job analysis are as follows:

    Step 1: Identifying the use to which the information will be put, since this will

    determine the types of data you collect and how you collect them. Some data collection

    techniques like interviewing the employee and asking what the job entails and what his

    responsibilities are good for writing job descriptions and selecting employees for the job.

    Other job analysis techniques e.g. the position analysis questioner do not provide

    qualitative information for job descriptions but rather numerical ratings for each job.

    These can be used to compare jobs to one another for compensation purposes.

    Step 2: Review relevant background information such as organization charts, process

    charts, and job descriptions. Organization charts show how the job in question relates to

    other jobs and where it fits in the overall organization. The chart should identify the title

    of each position and, by means of its interconnecting lines, show who reports to whom

    and with whom the job incumbent is expected to communicate.

    A process chart provides a more detailed understanding of the work flow than is

    obtainable from the organization chart alone. The existing job description if there is one

    can provide a starting point for building the revised job description.

    Step 3: Select representative positions to be analyzed. This is done when many similar

    jobs are to be analyzed and it is too time-consuming to analyze, say the jobs of all

    assembly workers.

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    Step 4: Next actually analyze the job by collecting data on job activities, required

    employee behaviors, working conditions and human traits and abilities needed to perform

    the job.

    Step 5: Review the information with job incumbents. The job analysis information

    should be verified with the worker performing the job and with his or her immediate

    supervisor. This will help to confirm that the information is actually correct and

    complete. This review step can also help gain the employees acceptance of the job

    analysis data and conclusions by giving that person a chance to review and modify your

    description of his or her job activities.

    Step 6: Develop a job description and job specification. A job description and a job

    specification are usually two concrete products of the job analysis. The job description is

    a written statement that describes the activities and responsibilities of the job as well as

    important features of the job such as working conditions and safety hazards. The job

    specification summarizes the personal qualities, traits, skills and background required for

    getting the job done, it may be either a separate document or on the same document as

    the job description.

    Class activity:

    Develop a job description and job specification for your current job. If not working at

    the moment prepare a job description and job specification for a job that you are

    familiar with.

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    Summary

    Job analysis is the procedure for determining the duties and skill requirements of a joband the kind of person who should be hired for it. In fewer words we can say that job

    analysis indicates what activities and accountabilities the job entails

    .A job analyst seeks to collect information on work activities, human behaviors,

    machines, tools, equipment, work aids, performance standards, job context and human

    requirements. The methods that managers can use to collect this information include

    observation, individual interview, group interview, structured questionnaire, technical

    conference and the diary method.

    Job analysis information can be used for making decisions on recruitment and selection,

    compensation, performance appraisal, training and to ensure complete assignment of

    duties .

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    Review Questions

    1.What is job analysis?

    2 What kind of information is collected during job analysis

    3 Describe the methods can you use to collect this kind of information

    4 What are the uses of job analysis information

    5 Compare and contrast the individual interview method and the group interview methods

    of job analysis

    6 Identify the advantages and disadvantages of the following job analysis techniques :

    observation method, structured questionnaire and diary method.

    7 What are job descriptions?

    8 What are job specifications?

    9.Describe the process involved in conducting a job analysis.

    Discussion Questions

    1.Job analysis is just another burden for the organization and is not really

    necessary. Discuss

    2.Smaller organizations do not need a job analysis for their jobs because most of

    their employees are generalists. Discuss

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    LESSON 6 THE RECRUITMENT AND SELECTION PROCESS

    Objectives:

    By the end of this lesson students should be able to

    Discuss the recruitment and selection process

    Discuss the pros and cons of the various recruitment and selection methods

    Introduction

    Emphasizing the essential nature of the recruiting function in todays business

    environment, Peter Drucker notes that every organization is in competition for its most

    essential resource: qualified, knowledgeable people

    An organization needs to hire the most qualified people it can at the most competitive

    price. Before an organization is able to hire an individual, it must locate qualified

    applicants who are looking for work. How does a company attract these people?

    This is the recruiting process and it represents one of the major responsibilities of the HR

    Manager

    Case

    Merck, the pharmaceutical company in U.S.A has been rated as the most admired

    company is a fortune magazine survey. Richard Markhan, head of worldwide marketing

    for the company, credits its success to attracting, developing and keeping good people.

    He says We look at recruiting with the same kind of intensity as we do discovering new

    molecules in the lab. Part of the Merck competitive advantage is their approach to

    recruiting. Their focus is on business and the need to hire the best people they can find.

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    In Lesson 4 we discussed the human resource planning .Successful human resource

    planning will tell us about our manpower needs. Once we know these needs we will want

    to do something about them .Human resource planning therefore helps us see the future

    openings and whether these will be filled by inside or outside candidates.

    Sometimes the term succession planning is used and this refers to the process of planning

    how the companys most important executive positions will be filled. The fundamental

    employment planning decision is whether projected positions will be filled internally or

    externally. In other words should the projected open positions be filled by current

    employees or whether they should be filled by recruiting outside candidates.

    Like any good plans, employment plans are built on premises. If you are planning for

    employment requirements, youll usually need three sets of forecasts:

    One for personnel needs

    One for the supply of inside candidates

    And one for the supply of outside candidates

    First predict the demand for your product or service ie the need for product and service.

    Next project the volume of production required to meet these estimates

    Finally, relate personnel needs to these production estimates.

    Once personnel needs are projected the next step is to build up a pool of qualified

    applicants

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    Definitions of recruitment

    Recruitment can be defined as the first part of the process of filling a vacancy; it includes

    the examination of the vacancy, the consideration of sources of suitable candidates,

    making contact with those candidates and attracting applications from them.

    We can also define recruitment in other ways several definitions have been offererd by

    several authors as given below :

    Recruiting is the discovering of potential candidates for actual or anticipated

    organizational vacancies. Or from another perspective it is a linking activity bringing

    together those with jobs to fill and those seeking jobs.

    (Decenzo, 1993)

    Recruiting may be defined as the process of seeking, attracting and identifying a pool of

    qualified candidates in sufficient numbers to fill current and future workforce needs.

    (Robert Bruce Bowin, 2000)

    Once you have been authorized to fill a position the next step is to develop an applicant

    pool, probably using internal recruitment or other recruitment sources described next.

    Recruiting is important because the more applicants you have the more selective you can

    be in your hiring. If only two candidates apply for two openings you may have little

    choice but to hire them. But if 10 or 20 applicants appear then you can employ

    techniques like interviews and tests to screen out all but the best.

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    The Recruiting Process

    The recruiting process therefore involves several steps:

    It begins with human resource planning and job analysis, and a determination of the

    organizations short and long term personnel needs based on these needs and existing

    conditions, the firm then recruits them both internal and external sources. This provides a

    pool of qualified job applicants, and the final step then is the selection from the applicant

    pool.

    We will now discuss several sources of candidates including internal sources (promotion

    from within) advertising, employment agencies, executive recruiters, college recruiting,

    the internet, referrals and walk ins.

    Remember that it is unlawful to discriminate against any individual with respect to

    employment because of race, color, religion, sex, national origin or age. Unless (religion,

    sex or origin are bona fide occupational qualifications.

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    External Sources of Candidates

    As mentioned earlier once the organization has become aware it needs additional

    employees the HR Manager is faced with the decision about how to generate the

    applicant pool necessary to satisfy labor needs. The organization can use internal sources

    and if necessary external sources for generating a sufficient number of applicants

    whenever there is a shortage of labor and skills inside the organization.

    External recruiting is used when the organization is unable to fill its hiring needs from

    internal sources. The organization may be growing too rapidly or may require highly

    specialized (technical skills not available in the current work force. The organization

    may want new ideas and approaches. When an organization decides to recruit from

    outside the organization the process becomes more involved and uncertain. Very many

    vacancies are filled new external sources; even when an internal candidate is transferred

    or promoted the final result is usually a vacancy elsewhere in the company which has to

    be filled from outside. They are both advantages and disadvantages to internal recruiting

    as we will see later.

    Once it has been decided to reach out to external candidates it will use one or several of

    the following external sources can be used:

    1. Advertising

    2. Employment Agencies /

    Temporary help agencies

    3. College Recruiting as a source of candidates4. Executive recruiting as a source of candidates

    5. Referrals and walk ins as a source of candidates

    6. Computerized Employee Database.

    7. The internet.

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    Very many vacancies are filled from external sources .Even when an internal candidate

    is transferred or promoted. The final result is usually a vacancy elsewhere in the

    company, which has to be filled from outside.

    External recruitment can be time consuming, expensive and uncertain, although it is

    possible to reduce these disadvantages to some extent with forethought and planning.

    External sources can be divided into 2 classes:

    Those which are comparatively inexpensive but offer a limited choice for example walk-

    ins, unsolicited applications.

    Those which are comparatively expensive but give the employer access to a wider range

    of candidates e.g. advertising, use of private agencies.

    Even when unemployment is high certain categories of employees who possess scarce

    skills are difficult to find and the employer may have to use the more expensive means of

    recruitment. Other types for example unskilled workers can be found very easily using

    inexpensive means, the problem then lies in selecting the suitable candidate from among

    a very large number of applicants.

    Recruitment is more likely to achieve its objective if recruiting sources reflect the type of

    position to be filled. For example an advertisement in the Standard business employment

    section is more likely to be read by a manager seeking and executive position in the

    K75,000 to K100,000 a year bracket than by a watch repairer, seeking to find

    employment.

    Dont look for the right person in the wrong place.

    e.g. dont look for a professional with a number of years working experience at a college.

    At a college look for a management trainee.

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    Certain recruiting sourcesare more effective than others for filling certain types of jobs

    Let us consider several external sources of candidates.

    As we review each source try to see the strengths & weaknesses in attempting to attract

    lower level and managerial personnel .

    1.Advertising as a Source of Candidates

    Is your advertising getting results? It sure is! Last week we advertised

    for a night watchman and the next night we were robbed.

    The most popular method of recruitment is to advertise the vacancy and invite candidates

    to apply to the company. To use advertisements successfully you need to address 2

    issues.

    - The media to be used.

    - The ads construction

    The selection of the best medium-be it the Daily Nation, the Times or a technical journal

    depends on the type of positions for which you are recruiting. To recruit professionals for

    example a C.E.O or Accountant you should choose a suitable medium like the East

    African Standard, for blue collar help you may choose other more suitable medium. It

    would not be appropriate for example to advertise for the position of CEO on a placard

    outside the factory building or in the classified help-wanted section of the dailies nor

    would it be appropriate to advertise for a sweeper in the Times. You must always

    choose the correct medium. or specialized employees you can advertise in trade and

    professional journals.One draw back to this type of trade paper advertising is the longlead-time that is usually required; there may be a month or more between insertion of the

    ad and publication of the journal.

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    Some media for example the Nation is particularly good for its wide geographical

    coverage such that the entire country can be targeted for coverage.

    The advertisement can become the first stage in selection by describing the job and

    qualifications required so comprehensively that borderline candidates will be deterred

    from applying and good candidates encouraged.

    The small amount of research that has been done in this field shows that information

    about the job contributed much more to the effectiveness of an advertisement that its style

    or size. There is also general agreement that including the word training in an

    advertisement increases the response.

    Advertising may be also made more effective and less expensive if the following

    principles are observed.

    a. The advertisement should contain a job specification and job description in miniature,

    including the following:

    - Job Title

    - Description of job and employer

    - Experience, skills and qualifications required.

    - Age range

    - Working conditions e.g. wage/ salary, fringe benefits

    - Training given

    - What action the candidate should take e.g. write a letter, telephone for an application

    form, etc.

    b. It should appear in the appropriate publication e.g. professional journal for specialists.

    c. Experiments should be made to test the response for different sizes headings,

    wordings, page position, day of the week.

    d. Careful records should be kept showing

    - Which publication was used

    - Which date and day of the week

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    - Which position on the page

    - Which style and size

    - Names of the candidates replying to each advertisements

    - Names of the candidates who are selected for the interview

    - Name of the candidate who was successful.

    e. The response should be analyzed so that advertising expenditure can be directed

    towards the publication and style of advertisement which give the best result for a

    particular type of vacancy.

    f. Rejected candidates should be sent a prompt and courteous letter; Inconsiderate

    treatment will eventually detract from a companys reputation and adversely affect

    the response to future advertisements.

    The small amount of research that has been done in this field shows that information

    about the job contributes much more to the effectiveness of an advertisement than its

    style or size.

    Sometimes other considerations besides cost and response must be kept in mind. The

    company may decide that small advertisements are not consistent with its prestige or

    image and that large advertisements must be used even though they can be shown to be

    wasteful. In this case part of the cos