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Session 1: Human Resource managementBarbara Gatumuta HR Consultant
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The application of Human Resource Managementprinciples is akin to other management functionslike accounting and finance or even IT
The health sector in many parts of the world is stillweighed down by the superiority of governmentpower involved in the sector. This has had theimpact of slowing down human resource changes
as opposed to other sectors
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Human Resource Management is defined as astrategic and coherent approach to the managementof an organizations most valued asset the people
working there who individually and collectively
contribute to the achievement of the organizationsobjective.
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The purpose of HRM is to improve the productive
contribution of people to the organization in an
ethical and socially responsible way
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The purpose of HRM is to improve the productivecontribution of people to the organization in anethical and socially responsible way.
HRM describes what the Human Resource functiondoes and what it should do.
HR Managers administer the contract ofemployment which is the legal basis of theemployment relationship within that framework.
Managing resourceful humans requires a constant
balancing between meeting human aspirations ofpeople and meeting the strategic and financialneeds of the business.
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The Strategic Nature HRM must be forward-thinking, support the business strategy,
and assist the organization in maintainingcompetitive advantage.
concerned with the total cost of its function and fordetermining value added to the organization.
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Strategic EnvironmentGovernmental LegislationLabor UnionsManagement Thought
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HRM Strategic Environment includes: Globalization
Technology
Work force diversity
Changing skill requirements Continuous improvement
Work process engineering
Decentralized work sites
Teams Employee involvement
Ethics
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Governmental Legislation Laws supporting employer and employee actions
Labor Unions Act on behalf of their members by negotiating
contracts with management
Exist to assist workers
Constrain managers
Affect non unionized workforce
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Four basicfunctions:
Staffing Training and
Development
Motivation
Maintenance
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Integration implies employee relations to align the interest of employees, themanagement and the union.
Industrial relations Participation Communication
Maintenance Ensures a continuation of an able and willing workforce. Health and safety Welfare
Separation Returning personnel to the society when they are no longer
required by the organization through retirement, redundancy,
discharge or any other form of termination. Employment and personnel administration Ensures the organization meets the legal requirements within
which personnel policies, practices and procedures operates.
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Human resource planningis a process by whichan organization ensures that it has the right number and kinds of people at the right place
at the right time capable of effectively and efficiently completing
those tasks that will help the organizationachieve its overall strategic objectives.
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Recruitment is the process of finding and engaging thepeople to fulfil organizations needs.
It entails identifying and hiring the best qualifiedcandidate for the job from within or outside the
organization, in a timely and most cost effectivemanner.
In order for an organization to succeed in theirbusiness, it has to have the right people.
Therefore, the quality of people in an organizationdetermines its success hence the significance ofrecruitment.
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This process cannot be complete until it attractsqualified job applicants.
The organization first decides what types of employees
are needed, how many are needed and how many ineach section, unit or department.
The recruitment process is followed immediately by theselection process.
Approaches in recruitment process include the internalrecruitment and the external recruitment.
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Recruitment methods include: Direct Indirect Third party
Selection process involves:
Preliminary screening interview Completion of application forms Tests Comprehensive interview Background investigation Final decision to hire
Types of selection tests include: aptitude or potential ability, achievement/proficiency
tests, personality tests
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Internal recruitment refers to identification of workers within the
organization to fill vacant positions.Advantages:1. Boosting employee morale: existing employees interpret this as recognition of
good performance as this is usually a promotion leading to salary increase. Itmakes them work harder towards achieving the organizations objectives as theyfeel trusted and appreciated.2. Less costly: Recruiting from within the organization is less costly as there are nocharges related to advertisements and other steps within the recruitmentprocess.3. Improves profitability: the savings made from recruiting from within is ploughedback into the organizations profits.
Disadvantages
1. Risk of stagnancy of ideas: Continual internal recruitment can lead to inbreedingof same ideas. Old people with their old ideas continue to carry on duties in thesame old fashion. This monotony can create boredom.
2. Risk of weaknesses flourishing: There is danger of perpetuating weaknesses thatalready exist in the organization. New recruits bring along new skills andknowledge which at times end up stimulating profitability.
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External recruitment refers to identification of workers outside theorganization to fill vacant positions.
Advantages1. New skills and knowledge: the organization usually obtains a
variety of skilled and experienced workers. New recruits canimpact those they find with fresh ideas as they assist each otheraccordingly.
2. Impact of more liveliness: social and behavioural diversitiesbrought along by new recruits sometimes can impact livelinessin the employees as they get to know each other.
Disadvantages1. Costly: The recruitment process most times picks many
applicants who have to be interviewed. After short-listing, fewapplicants are absorbed. The cost of incurred in carrying out
the interview process is usually high.2. Time consuming: Majority of applicants will not make it into thefirm as employees. However, time has to be spent to seed theright one. The time could have been used doing somethingelse.
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1. Overtime: The current employees are made towork extra time and are paid for that. Paymentcan be in monetary terms or in time-off fromwork, depending on the organizations HR policies.2. Temporary employees: This applies mostly whendeadlines have to be met. Additional hands arehired since subjecting workers to overtime wouldnot be of great help.3. Consultants: This category of human resource areusually highly specialized and freelance in status.Their spectrum range from individual entities tolarge companies as suppliers of their expertise.
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The Employment Act 2007 and governmentrequirements outlined by the Revenue Authoritydescribes the payment rates for certain categoriesof employees as well as taxation rates for each
category for those handled under the 4 alternativeways of recruitment outlined above.
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Policies are broad guidelines governing relatively
important actions in an organization. HR policies can be expressed as overall statements
of the organization philosophy and of its values. Its an expression of its values or belief about how
people should be treated. Any organization gets
its reputation from its value systems. HR policies enable organizations carry out their
objectives in the desired manner they createorder.
They ensure employees are informed of the
employers expectations. They protect the common interest of all parties in
the organization
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Organizational structure
Employment policy
Human resource development
Staff relations
Benefits policy
Other policies may include: Recruitment, Selectionand Placement policies, Staff Rules and regulations,Separation policies, Termination procedures,Communication etc
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Employee management is a Supervisor or Managersfirst concern at work. Upon hiring a superior workforce, a Supervisor needs to
understand and perform the employee practices thatkeep employees motivated, inspired, developing, andattaining goals with your guidance.
Effective management and leadership of employeesallow accomplishment of goals at work.
Effective employee management and leadership allowsone to capitalize on the strengths of other employeesand their ability to contribute to the accomplishment of
work goals. Successful employee management and leadershippromote employee engagement, employee motivation,employee development, and employee retention.
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Is concerned with assisting employees todevelop up-to-date skills, knowledge, andabilities
Orientationand socializationhelps employeesto adapt
Four phases of training and development Employee training Employee development Organization development Career development
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A process of adaptation to a new work role. Adjustments must be made whenever individuals
change jobs The most profound adjustment occurs when an
individual first enters an organization.
The assumptions of employee socialization: Socialization strongly influences employee
performance and organizational stability Provides information on how to do the job and
ensuring organizational fit. New members suffer from anxiety, which motivates
them to learn the values and norms of theorganization
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Orientation may be done by the supervisor, theHRM staff or some combination. Formal or informal, depending on the size of
the organization. Covers such things as:
The organizations objectives History Philosophy Procedures Rules HRM policies and benefits Fellow employees
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Learning the Organizations Culture Culture includes long-standing, often unwritten
rules about what is appropriate behavior. Socialized employees know how things are done,
what matters, and which behaviors and
perspectives are acceptable. Management can be involved by:Welcome employees.Provide a vision for the company.Introduce company culture -- what matters.
Convey that the company cares about employees.Allay some new employee anxieties and helpthem to feel good about their job choice.
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Employee traininga learning experience designed to achieve arelatively permanent change in an individual thatwill improve the ability to perform on the job.
Employee development
future-oriented training, focusing on the personalgrowth of the employee.
:
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On the job training methods Job Rotation
Understudy Assignments
Off the job training methods Classroom lectures
Films and videos
Simulation exercises
Vestibule training
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Job rotationinvolves moving employees to various
positions in the organization to expand their skills,knowledge and abilities. Assistant-to positionsallow employees with potential to
work under and be coached by successful managers. Committee assignmentsprovide opportunities for:
decision-making
learning by watching others becoming more familiar with organizational members and
problems Lecture courses and seminarsbenefit from todays
technology and are often offered in a distance learningformat.
Simulationsinclude case studies, decision games and
role plays and are intended to improve decision-making. Outdoor trainingtypically involves challenges which
teach trainees the importance of teamwork.
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The process of developing, implementing, maintaining, communicatingand evaluating reward strategies, policies and system aimed at ensuring
employees are rewarded fairly, consistently and equitably in accordancewith the organizations value.
Components of Reward management include
Basic pay
Benefits
Reward system
Job evaluation
Pay structures
Non financial rewards
The design of an organizations compensation system may have a criticalimpact on the ability to achieve its strategic goals. The reward system can
influence:
Who is attracted to and/or remains with the organization
An employees motivation
The organizations operating costs
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Efficiency Quality
Performance
Cost
Fairness
Compliance
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Financialrewards include: wages bonuses profit sharing
pension plans paid leaves purchase discounts
Non financialrewards emphasize making lifeon the job more attractive; employees varygreatly on what types they find desirable.
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1. Decide the importance of external equity in the
organizations compensation system..2. Decide how closely the compensation plan will be
linked to the organizations overall strategic plan.3. Make a choice between merit pay (based on
performance) or across-the-board raises.
4. Choose the level of pay secrecy. Whether pay ratesare individualistic and secret or are public posted fortransparency.
5. Determine its policy on internal equity. This is theobjective of setting wage rates that conform to the
jobs internal worth to the employer.6. Decide how to mix intrinsic rewards (based on job
performance level) and extrinsic rewards (based onfactors outside the job).
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Attract and motivate people with the necessary
characteristics to succeed in their jobs.
Retain employees who are satisfied.
Reward employees for effort, loyalty, experienceand achievement
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Payroll is the sum of all financial records of salaries
for an employee, wages, bonuses and deductions. Payroll plays a major role in an organization for
several reasons.
From an accounting perspective
From an ethics in business viewpoint Good employee morale requires payroll to be
paid timely and accurately
The primary mission of the payroll department
is to ensure that all employees are paidaccurately and timely with the correctwithholdings and deductions
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It is a process of continually feeding back tosubordinates information regarding their workperformance.
It can be formal or informal
Formal Methods include Appraisal by results/MBO,The Assessment Centre method
Purposes of a Performance ManagementSystemFeedback- let employees know how well they have
done and allow for employee input. evelopmentidentify areas in which employees
have deficiencies or weaknesses.
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To Inform staff how their current performance is
being rated Identify staff who deserve merit raises
Locate staff who need additional training
Identify candidates for promotion
Approaches to performance appraisal include:- Superior rating subordinates
A group of superiors rating subordinates.
A group of peers rating a colleague
Subordinates rating their managers
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Managers shifting standards
Rater bias
Different rater patterns
The Halo effect
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Possibility of advancement often serves as a
major incentive for superior managerialperformance with promotions being the mostsignificant way to recognize superiorperformance.
Promotions should be fair based on merit anduntainted favoritism.
Staff bypassed for promotion frequently feelresentful which affects morale and productivity.
It is important to consider discriminationagainst women, the aged and minority groups.
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it is important to understand what motivates people. High
performance is achieved by well-motivated people who areprepared to exercise discretionary effort.
In order to motivate people, it is important to appreciatehow motivation works.
Motivation and money Money is a powerful motivating force because it is linked
directly or indirectly to the satisfaction of many needs.
Money may in itself have no intrinsic meaning, but it
acquires significant motivating power because it comes tosymbolize so many intangible goals
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Employee Relations or Employment Relations are
concerned with managing and maintainemployment relationships which involve handlingpay-work bargain, employment practices, termsand conditions of employment, issues arising fromemployment, etc.
Basically, the main aspect of employee relations isthe agreement whereby the employer undertakes topay for work done by the employee;
Employers want engagement and commitmentwhereas the employees want a say in how much
they are rewarded, terms and conditions ofemployment, security, healthy and safe workenvironment etc.
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Good employee relationships results into improved
staff morale and commitment, fewer grievances,increased productivity and better control of labourcosts.
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There are three groups of parties to the employment
relationship who duly interact with each other in allcircumstances:
The employers and employees
The umbrella employee representatives (COTU in Kenya)and umbrella employer representatives (FKE in Kenya)
The state agencies (Ministry of Labour in Kenya).Other bodies which play a role in the employmentrelationship also include:
Staff associations
Employers (industry) associations e.g. KAM
Various institutions and agencies e.g. Human Rights orgender rights movements
The HR function
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Some of the conditions necessary for establishing goodlabour relations are:
Employer recognizes that workers are a part of the teamworking towards common organizational goals.
Willingness on the part of the workers to play their role(deliver the goods).
The right attitude on the part of the employer, towards
redressing workers grievances. The right attitude of supervisors towards workers rights. Workers/trade unions refusal to be influenced by
politicians to stage strikes. Payment of fair wages/salaries, establishing good working
conditions. Establishing a policy which ensures equitable share of
workers in gains of increased productivity.
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Workers indiscipline
Poor working conditions Managements intolerant attitude towards
workers Inadequate pay structure
Heavy work loads Poor attitude of supervisors lack of human
relations skills Unfair labour practices victimization,
dismissals Introduction of new technology without
adequate preparation
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Grievance policy on handling grievances should
provide a guideline and the approach in dealing withthem. For example, most companies espouse thepolicy that employees should:
Be given fair hearing by the immediatesupervisor/management concerning any grievances
they wish to raise. Have the right to appeal to more senior
management against a decision made by theirimmediate supervisor.
Have a right to be accompanied by a fellowemployee of their own choice when raising agrievance or appealing against a decision.
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It is a requirement by the laws of labour
internationally, that employers provide severaltypes of insurances for the employees. In KenyaWIBA is compulsory insurance that all employersmust take for their employees.
These differ in scope and magnitude by region, bycountry, by industry/sector and by organization.
The scope follows what is governmentally definedbut the magnitude is controlled by a myriad of
factors including the organizational culture, thesize of the organization and the relevance of thedefined risks.
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The process by which an employee terminates or is
terminated from employment. There are several ways depending on the prevailing
circumstances, these include:-
Lay offs
Resignation
Dismissal or discharge
Retrenchment
Retirement
Redundancy
Demotion
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A staff member can be terminated due to the followingoffences but is not restricted to only them.
On grounds of ill health and based on certification by arecognized medical practitioner
As a result of a consistently unsatisfactory performance,as outlined in the Staff Policies Manual of theorganization.
Absence from duty without leave, or failure to report forduty at the end of a leave period without valid reasons.
As a result of dishonesty involving organizationsproperty or misuse of the organizations resources.
Insubordination, acts of sabotage, subversion
Conviction by court of law of a criminal offence
Engagement in activities likely to compromisediscipline, or bring the organization into disrepute.
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THANK YOU.