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1 MANAGEMENT OF HUMAN REOURCES FOUNDATIONS OF HUMAN RESOURCE MANAGEMENT DEFINITION Human Resource Management is the act ivity or discipline tha t is concerned wit h the “people” dimension in management. Human Resource management is a process consisting of four functions acquisition, development, motivation and maintenance of people or employees. The ACQUISITION FUNCTION This begins with planning. This includes estimating of demands and supplies of labour. Acquisition also includes that recruitment, selection and socialization of employees. THE DEVELOPMENT FUNCTION This can be viewed along three dimensions. The first is employee traini ng which emphasize s skill development and changing altitudes among workers. The second is management development which concerns itself primarily with knowledge acquisition and the enhancement of an executives conceptual abilities. The timid career development, which is one continual effort to match long-term indi vidual and organizational needs. THE MOTIVATION FUNCTION This involve stimulating workers performance through such techniques as providing job satisfaction,  performance Appraisal, linking rewards to performance and co mpensation. THE MAINTENANCE FUNCTION This is concerned with providing those working conditions tha t employ ees are nec essary for employees in order to maintain their commitments to the organization. ORIGINS OF HUMAN RESOURCE MANAGEMENT Origins of HUMAN RESOURCE MANAGEMENT i.e. within employment practi ces associated with welfa re capital ist employ ers in the United State s during the 1930’s. These empl oyers showed an ideological opposition to unionization and collective relations.

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MANAGEMENT OF HUMAN REOURCES

FOUNDATIONS OF HUMAN RESOURCE MANAGEMENT

DEFINITION

Human Resource Management is the activity or discipline that is concerned with the “people”dimension in management.

Human Resource management is a process consisting of four functions acquisition, development,

motivation and maintenance of people or employees.

The ACQUISITION FUNCTION

This begins with planning. This includes estimating of demands and supplies of labour. Acquisition

also includes that recruitment, selection and socialization of employees.

THE DEVELOPMENT FUNCTION

This can be viewed along three dimensions. The first is employee training which emphasizes skill

development and changing altitudes among workers. The second is management development which

concerns itself primarily with knowledge acquisition and the enhancement of an executives conceptual

abilities. The timid career development, which is one continual effort to match long-term individual

and organizational needs.

THE MOTIVATION FUNCTION

This involve stimulating workers performance through such techniques as providing job satisfaction,

 performance Appraisal, linking rewards to performance and compensation.

THE MAINTENANCE FUNCTION

This is concerned with providing those working conditions that employees are necessary for 

employees in order to maintain their commitments to the organization.

ORIGINS OF HUMAN RESOURCE MANAGEMENT

Origins of HUMAN RESOURCE MANAGEMENT i.e. within employment practices associated with

welfare capitalist employers in the United States during the 1930’s. These employers showed an

ideological opposition to unionization and collective relations.

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Welfare capitalists believed that the firm’s rather than third party institution such as the state of trade

unions, should provide for the welfare of the workers. For example welfare capitalists (employers)

 paid efficiency wages, introduced health care coverage, pension plans and provided lay off pay.

Welfare capitalists pioneered perform-related pay profit-sharing schemes and team-working.

These played a role to the development of human resource management. Even though human resource

management is now established it was only after the 1980’s that human resource gained proper 

recognition.in the bsusiness world

HUMAN RESOURCE MANAGEMENT ACTIVITIES

RECRUITMENT

DEFINITION

Is the process of finding and attracting capable applicants for employment. The process begins when

new recruits are sough and ends when their applications are submitted. The result which new

employees are selected.

Recruiting may also be defined as the process of discovering potential candidates for actual or 

anticipated organizational vacancies.

PURPOSES AND IMPORATNCE OF RECRUITMENT.1. Determine the present and future requirements of the organisation in conjunction with Human

Resource Planning

2. Increase the pool of job candidates or maximum cost.

3. Helps increase the success rate of the selection process by reducing the number of visiting

under qualified or over-qualified job applicants.

4. Help reduce the probability that job applicants, once recruited and selected will leave the

organisation only after a short period of time.

5. Met the organisations legal and social obligations regarding the composition of its workforce.

6. Begin identifying and preparing potential job applicant who will be appropriate candidates for 

 positions.

7. Increase organizational effectiveness in the short and long –term.

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FACTORS AFFECTING RECRUITMENT

Recruitment is subject to the influence of several factors. These include external as well as internal

factors.

a. Supply and Demand

Supply and demand of skins in the labour market. If the demand for a particular skill is high

relative to the supply, a big recruiting effort may be needed.

 b. Unemployment Rate

When the unemployment rate is high in a given area the firm may have a simple recruitment

 process. The number of unsolicited applicants is usually greater.

c. Labour Market Conditions

This is important in recruiting for most non-managerial supervisory and middle management

 positions.

d. Political case is made by certain laws for Equal Employment Opportunities particularly to the

less advantaged.

e. Image-image of an organisations influences recruitment e.g. Microsoft, etc

INTERNAL FACTORS

a. Size of the Firm

An organisation with a large workforce say 50,000 will find itself recruiting continually

 b. Growth of the firm

Firms that are growing rapidly will have recruitment as one of their major human resource

management activities.

c. Costs of Recruitment

Recruiting exercises are expensive budget restrictions exist. Firms must therefore keep these

costs low.

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d. Internal Recruitment Policies

Most firms have an internal recruiting policy i.e. “promotion from within” – This may give

 priority to individuals within the organisation when certain positions fall vacant. Some firms

may however have an external re-existing policy.

SOURCES OF RECRUITMENT

1. Internal search

May large organisation will attempt to develop their own employees for higher positions. This

is done through an internal search.

2. Employee Referrals

This is the recommendation received from current employees. It is expected that such

recommendation (s) is based on considered judgment. The recommender gives the applicant

more realistic information about the job than could be conveyed through newspaper 

advertisements. Most employees know from their own experience about the requirements of 

the job and what sort of persons the company is looking for.

3. Advertisements

Advertisements are preferred by firms because of their wide reach. Adverts are done when anorganisation wishes to communicate to the public that it has a vacancy. Adverts are mostly

done for jobs that require specialized skills or for those resources that are scarce in the labour 

market.

4. Employment Agencies.

These are exchanges or organisations that increase the pool possible applicants and do

 preliminary screening. They act as a link between the employers and prospective employees.

5. Colleges/Universities

Graduate from universities and colleges are also recruited into job through universities. Some

universities even have placement officers who provide potential employers with information

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and date on students. Qualifications may range from undergraduate degrees, master degrees or 

Ph.D degrees.

6. Unsolicited Applicants.

The most common and least expensive approach for candidates is direct application, in which

 job seekers subject unsolicited application letters or resumes.

SELECTION

DEFINITION

Selection is the process of choosing from among available applicants the individuals who are most

likely to successfully perform a job.

Selection may also be defined as the process of picking individuals (out of a pool of job applicants)

with requisite qualifications and competence to fill jobs in the organisation.

THE LECTION PROCESS

DIAGRAM: STEPS IN THE SELECTION PROCESS.

Completion and receiving of 

Application form

Preliminary Interview

Employment Tests

Diagnostic Interview

Reference checking

Physical examination for 

those offered positions

Final decisions

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1. Application Form

The application provide basic employer information for use in the later steps of the selection

 process. For example, if the job opening requires an ability to use a word processor and the

applicants indicates an inability to use a word processor then. There is no need to process the

application further.

2. Preliminary Interview

This is used to determine whether the applicants skills, abilities and job preferences match any

of he jobs in the organisation to explain to the applicant available jobs and the requirements.

They are also called “ courtesy interview” since they are also used to answer any questions the

applicants may have.

This interview is also used to screen out applicants for reasons which may not have appeared

on the application forms.

3. Employment Tests

Also called Formal Testing. These may take either oral or written form or both. Tests can be

of various categories.

a. Aptititude TestsThese test or measure a persons ability to learn. They could measure verbal ability,

numerical ability, reasoning ability, perceptual speed etc.

 b. Job knowledge Tests/Proficiently Tests

These measure job related knowledge processed by an applicant.

c. Personally Tests

Measure a prospective employees motivation level or personally characteristics that would

enable his/her work in a particular working environment.

4. Diagnostic Interview or Employment Interview

Also called second or follow-up interview. Its purpose is to supplement information obtained

in the previous steps of the selection process.

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An interview is a formal, in-depth conservation conducts to evaluate an applicants

acceptability. They help to obtain additional information from applicants and also help to build

the company’s image among applicants.

Interview may be:-

i. Structured interview

These are conducted using a pre-determined outline that is based on an in-depth job

analysis. All relevant questions are asked systematically.

 

ii. Unstructured interviews

Questions are made up during the interview. They do not have a pre-determined checklist

of questions. Instead, open –ended questions are used such as “tell us about your previous

 job”

CONDUCTING EFFECTIVE INTERVIEWS

Several problems are interw in interviews and they can be eliminated in the following ways;

a. Give careful attention to the selection and training of interviewers.

b. The plan for the interview should include an outline specifying the information to be

obtained and the questions to be asked.

c.The interviewer should attempt to put the applicants at ease. The interviewer shouldnot argue with the applicant or put the applicant on the spot. The interviewer may start

up a brief conversation with the applicant about a general topic of interest or offer the

applicant a cup of coffee to ease the tension.

d. The facts obtained in the interview should be recorded in writing during and after the

interview.

e. Finally, evaluate the effectiveness of the interview process. This can be done by

comparing performance appraisals of  stt individuals to assessments made during the

interview.

5. Reference Checking

Many employers request names, addresses and contact or references for the purpose of 

verifying information and perhaps gaining additional background information on an applicant.

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Previous employers can al an applicants reference because they are aware of the applicants

 performance, know public figured or friends can also act as references.

Information gathered from references rarely influence selection decisions since a candidate

approaches only those persons who would speak well about him or her 

6. Physical Examination

This may be required only for those individuals who have been offered the job and the job

offer may be contingent upon the person processing the physical examination

The physical examination determines whether the person is physically fit to perform the work;

also they determine a persons eligibility for group health and disability insurance.

7. Making The Final Selection Decision (Job Offer)

This stage applies to those applicants who have crossed all the previous hurdles. If there will

 be more than one qualified persons for a particular job opening, a value judgment based on the

information gathered from the previous steps must be made to select the most qualified

individual.

A job offer is made through a letter of appointment. Such a letter usually contains a date by

which the appropriate must report fro duty.

TRAINING AND DEVELOPMENT

DEFINITION

Training is a learning process that involves the acquisition of skills, concepts, knowledge or attitudes

to enhance the performance of employees. The quality of training has a significant influence on the

employees productivity and attitude towards the job.

 NEEDS ASSESSMENT

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 Needs Assessment is a systematic analysis of the specific training needed by the organization to

achieve its objectives.

Training must be directed towards the accomplishment of some organizational objective such as more

efficient production methods, improved quality of products and services and reduced operating

expenses.

METHODS OF NEEDS ASSESSMENT

1. Interviews

Interviews with employees can be conducted by specialists in the human Resources Department.

Basic questions could include; what problems employees are having in their job? What

additional skills does the employee need to perform better? What kind of training does the

employee believe is needed?

2. Surveys and Questionnaires

This involves developing a list of skills required to perform particular jobs effectively and asking

employees to check those skills in which they believe they need training a questionnaire may list

questions covering areas relevant for needs assessment e.g. time management communication

skills, productivity etc.

3. Observations

These must be conducted by individuals trained in observing individuals trained in observing

employees behaviour and translating observed behaviours into specific training needs.

4. Focus group

Are composed of employees from various departments and various levels within the

organisation. A specialist from the Human Resource Department can conduct focus group

session.

METHODS OF TRAINING

A. ON THE JOB TRAINING METHODS

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These are given mostly by senior employees or managers. The employee is shown how to perform

the job and is allowed to do it under a trainers supervision.

On job training methods include the following:-

a. Job Rotation

In job rotation and individual learns several different jobs within a work unit or department and

 performs each job for specified period of time.

 b. Apprenticeship Training

This means giving instructions both on and off the job ion the practical and theoretical aspects of 

the work required in a skilled profession.

c. Simulation

Simulation is a technique which duplicates, as nearly as possible, the actual conditions

encountered on the job

This training is essential in cases where actual

B. OFF-THE JOB TRAINING METHODS

a. LecturersLectures are formal, organized forms by the training specialists, the immediate superior or 

an external specialist on specific topics. This methods can be used for very large groups

who are to be trained within a short-time

 b. Classroom Training (Vestibule Training)

This is an effective means of imparting information quickly to large groups with limited or 

no knowledge of the subject being presented.

This training is often imparted with the help of the equipment and machines which are

identical with those in use at the place of work.

c. The conference method

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In this method, the participating individuals ‘confer’ to discuss points of common interest

to each other. It is a formal meeting conducted in accordance with an organized plan in

which the leader seeks to develop knowledge and understanding by obtaining a

considerable amount of verbal participation of the trainees.

It lays emphasis on small group discussion and learning is facilitated

d. Seminar 

A seminar is conducted in many ways.

i. It may be based on a paper prepared by one or more trainees on a subject selected in

consultation with person or organisation incharge of the seminar.

ii. It may be based on a statement made by the person in charge of the seminar or on a

document prepared by an expert, who is invited to participate in the discussion.

iii.The person in charge of the seminar distributes in advance the material to be analysed in

the form of required readings. The seminar then encourages discussion, defines general

trends and guides participants.

iv.

e. Role playing

This is a method of human interaction which involves realistic behaviour in imaginary

situations. A role playing experience demonstrates the gap between doing and thinking itinvolves action, doing, thinking and practice.

Two or more trainees are assigned parts to play before the rest of the class.

CRITICAL ASPECTS OF HUMAN RESOURCE MANAGEMENT.

MOTIVATION

MEANING

Motivation may be understood as the set of forces that causes people to behave in certain ways.

Motivation is a Latin word meaning “to move”. A motive is an inner state that energizes activities or 

channels behaviour towards specified goals.

TYPES OF MOTIVATION

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If a manager wants to get work done by his employees he may either hold out a promise of a reward

for them for, doing work in a better or improved way or he may constrain them by instilling fear in

then or by using force to do the4 desired work.

The types of motivation are:-

1. Positive motivation (incentive motivation

This is generally based on reward. Positive motivation is a process of attempting to influence

others to do your will through the possibility of gain or reward.

Incentive motivation a ‘pull’ mechanism.

2. Negative motivation (Fear Motivation)

This is based on force and fear. Fear causes people to act in a certain way because they are

afraid of the consequences if they don’t. The consequences include dismissals or demotion.

Fear motivation is a ‘push’ mechanism,.

 Negative motivation has its limitations and this may include a hostile state of mood and even

unfavourable attitudes.

3. Extrinsic Motivation

This is concerned with external motivation which employees enjoy such as pay, promotion,

status fringe, benefits, health insurance schmes etc. These motivation are mostly associatedwith financial and material rewards.

4. Intrinsic Motivation

This is concerned with the feeling by a person, of having accomplished something worthwhile

i.e. the satisfaction one gets after doing one’s work well. Responsibility, recognition, esteem,

 participation are examples of such motivation.

5. Self-Motivation.

Before one can motivate others one must motivate one’s self. Motivation is affected by

monotonous work, bad environmental conditions, financial difficulties etc. One can motivate

oneself by setting certain objectives for oneself.

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6. Group Motivation

People can be motivated correctively if they are informed of ideas and plans that affect them.

The communication of these ideas, pals nets can motivate employees when done effectively. A

group can also be motivated by improving human relations encouraging people and giving

them opportunities to improve their performance.

TECHNIQUE OF MOTIVATION

1. Financial Motivation

Such motivations are connected, directly or indirectly with money. These include:-

a. Wages /salaries.

 b. Bonuses

c. Profit-sharing

d. Medical reimbursements.

2. Non-financial Motivation

These techniques of motivation are not connected with monetary rewards. Non-financial

motivators are psychic rewards of enhanced position secured in the work organisation.

a. Praise and Prestige

These satisfy the human need for esteem by people.

 b. Status and prideStatus refers to the social rank of a person and satisfies social and egoistic needs. Status

symbolic could be established in the organisation, such as furnishing employee offices,

installing extra facilities.

c. Competition

Individuals compete to satisfy their ego so many organisations use competition among

employees. However, it may create negative feelings too, like hostility among members.

d. Participation

It implies involving people in decision-making. This satisfies one’s self-esteem.

e. Job Rotation

It implies shifting an employee from one job to another so that monotony and boredom is

reduced. The basic objective is to increase the skill and knowledge of an employee.

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THEORIES OF MOTIVATION

1. THE CARROT AND SICK THEORY

The metaphor carrot and stick relates to the use of rewards and  phroustines or penalties in

order to induce desires behaviour “carrots” are the inducements offered. It can take the form of 

money (pay or bonuses).

The ‘stick’ comes in the form of ‘fear’ – fear of loss of job, loss of income, demotion etc.

This theory may however, give use to defensive or retaliatory behaviour.

2. MCGREGORS THEORY ‘X’ AND THEORY ‘Y’

According to Douglas McGregor motivation can only be effective after one has understood the

nature of people. Theory X an Theory Y are two sets of assumptions about the nature of 

  people. McGregor chose those trends because he wanted neutral technology without any

connotation of being good” or “bad”.

THEORY X ASSUMPTIONS

a. That the average human being has an inherent dislike of work and will avoid it if they can.

b. That because of this dislike of work, most people have to be coerced, directed and

controlled in order to get them to put forth adequate effort.

c.That human beings prefer to be directed, wish to avoid responsibility, have relatively littleambition and want security above all.

THEORY ‘Y’ ASSUMPTIONS

a. That external control and punishment are not the only means for producing effort towards

organizational objectives.

 b. That the degree of commitment to objectives is in proportion to the size of the rewards

associate with their achievement.

c. That average human beings learn under proper conditions, not only to accept responsibility,

 but also to seek it.

d. That the capacity to exercise a relatively high degree of imagination ingenuity and

creativity in the solution of organizational problems is widely, not narrowly distributed in

the population.

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3. HIERARCHY OF NEEDS THEORY

This was put forth by psychologist Abraham Maslow. Maslow saw human needs in the form of 

hierarchy ascending from the lowest to the highest and he concluded that when one need is

satisfied, this kind of need ceases to be a motivation.

The Needs Hierarchy Theory comprises:-

i. Physiological Needs

These are the basic needs of sustaining human life e.g. food, shelter, clothing.

ii. Safety Needs

This is the need to be free from physical danger or the fear of losing a job, property or 

shelter.

iii. Affiliation

Since people are societal beings they need to belong, to be accepted by others.

iv. Esteem Needs

This kind of need produces such satisfaction as power, prestige, status and self confidence

v. Self-Actualization Needs

Maslow regards this as the highest need in the hierarchy. It is the desire to become what

one is capable of becoming – to maximize potential and accomplish something.

4. THE MOTIVATION – HYGIENE APPRAOCH

(TWO- FACTOR THEORY OF MOTIVATION)

This was developed by Frederick Herzberg. He finds a Two- factor theory to motivation.

In one group of needs are such things as company policy and administration supervision,

working conditions, salary, status, job-security etc.

These were founded by Herzberg to be dissatisfiers and not motivations. In other words, if 

they exist in a work environment in high quality and quantity, their existence does not motivate

in the sense of yielding satisfaction but their lack of existence would however result in

dissatisfaction.

Herzberg called them maintenance hygiene or job context factors.

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In the second group Herzberg found certain satisfiers and therefore motivators-all related to job

content. They include achievement, recognition, growth in the job, challenging work etc. Their 

existence will yield feelings of satisfaction and therefore motivation.

 

5. THE EXPECTANCY THEORY OF MOTIVATION

This theory holds that people will be motivated to do things to reach a goal if they believe in

the worth of that goal and if they can see that what they do will help in achieving it. In other 

words, their motivation is a product of anticipated with that an individual places on a goal and

the chances he/she sees of achieving that goal.

6. EQUITY THOERY

This theory is basically about whether individuals preserve the reward structure as being fair.

The Equity Theory refers to an individuals subjective judgments about the fairness of the

reward she or her got relative to the inputs (which includes factors such as effort, experience

and qualification)

The essential aspects of the Equity Theory may be shown as follows:-

 APPRAISAL OF PERSONNEL

  PERFORMANCE APPRAISAL

DEFINITION

Is the process of determining and communicating to an employee how he or she is performing on the

 job, and ideally establishing a plan of improvement.

USES OF PERFROAMCNE APPRAISAL

1. Making administrative decision relating to promotions, demotions and payment increase.

Outcome by a person

Inputs by a person

Outcome by another person

Inputs by another person=

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2. Providing needed input for determing both individual and organizational training and

development needs. Strengths and weaknesses can be identified.

3. To encourage performance improvement. They help suggest changes that could be made on an

employee’s performance.

4. Used for the purposes of Human Resource Planning (HRP) i.e. getting the right member of 

 people with the right equalizations at the right time.

PERFORMANCE APPRAISAL METHODS

1. WORK STANDARDS APPROACH

This is basically a form of goal setting for employees mostly in the production department. It

involves setting a standard or an expected level of input and then comparing each employees

 performance to the standard.

2. ESSAY APPRAISAL

This is a method of performance Appraisal in which the writer prepares a written statement

describing an individuals strengths and weaknesses and past performance. It is written in

narrative form.

A typical essay appraisal question might be:-“Describe in your won words employee Xs performance, including quantity and quality of 

work, job knowledge and ability to get a long with other employees?”

3. CRITICAL INCIDENT APPRAISAL

This is a method of performance Appraisal in which the evaluator keeps a written record of 

incidents that illustrate both positive and negative behaviours of the employee.

The evaluator then uses these incidents a s a basis for evaluating the employees performance.

The drawback to this approach includes;

a. The evaluator is required to jot down incidents regularly which can be burdensome and

time consuming.

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b. The definition of critical incidents is unclear and may be interpreted differently by different

 people.

4. GRAPHIC RATING SCALE

The rater (evaluator) assesses and employee on factors such as quantity of work, dependability,

 job knowledge, attendance, accuracy of work etc.

5. CHECKLIST

In this method, the rater makes ‘yes’ or ‘No’ responses to a

series of questions concerning the employees behaviour. The

checklist can also have varying weights assigned to each

question.

 Normally the seoning key for the checklist is kept in the Human resource department. The

evaluator is not aware of the weights associated with each question.

Some checklist questions are

Yes No

i. Does the employee play favourites?

ii. Does the employee volunteer to do special jobs?

iii. Does the employee show humility in dealing with customer?

6. FORCED –CHOICE RATING

This is a method of performance- Appraisal that required the rater to rank a set of statements

describing how an employee carried out the duties and responsibilities of the job

Sample set of forced choice statements.

Instructions are that the rater evaluator should rank the following statements according to how

they describe the manner in which employee X carries out her duties and responsibilities.

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Rank 1 should be given to the most descriptive and Rank 5 to the least descriptive. No ties are

 permitted.

Rank Description

Is easy to get acquitted with

Places great emphasis on people

Refuses to accept criticism.

Thinks generally in terms of money.

Makes decision quickly.

The statement are normally weighed and the weighs are not known to the evaluator generally.

The evaluator submits his/her ranks to the human resource department who then apply the

weights and compute the score.

7. RANKING METHODS

Here, the performance of an employee is ranked relative to the performance of others. They

are used when it becomes necessary to compare the performance of two or more employees.

DRAWBACKS TO PERFORMANCE APPRAISAL1. Leniency

This occur when a manager ratings are grouped at the positive end instead of being spread

throughout the scale.

2. Central Tendency

This is the tendency of a manager to rate most employees performance near the middle of the

rating scale.

3. Recency

This is the tendency of a manager to evaluate employees on work performed most recently

usually one or two months prior to evaluation.

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4. The Halo effects

This occurs when an evaluator allows a single prominent characteristic of an employee to

influence his or her judgment on each separate item on the performance appraisal

COMPENSATION OF PERSONNEL

Employees exchange work for rewards probably the most important reward and certainly the most

obvious is money.

The goal of compensating personnel is to retain competent employees. A pay structure was to be

designed in a manner that will attract, motivate and retain competent employees.

Wages and salaries are the hourly, weekly or monthly pay that employees receive in exchange for their 

work.

OBJECTIVES OF THE BASIC WAGE AND SALARY SYSTEM

1. To test a structure for the equitable compensation of employees, depending on their jobs and

level of performance in their jobs.

2. To establish pay ranges for certain jobs on their relative worth to the organisation.

JOB EVALUATION

Job evaluation is a systematic determination of the worth of each job in relation to other jobs in the

organisation. This process is meant for designing a pay structure, not for appraising the performance

of employees.

The general idea of job evaluation is to enumerate the requirements of a job and the jobs contribution

to the organisation and then classify it according to its importance.

METHODS OF JOB EVALUATION

1. Job Ranking method

Under this method the evaluator ranks jobs from the simplest to the most difficult

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An individual incentive plans are tied to the performance of the individual. At non-managerial

levels in an organisation, individual incentives are usually based on the performance of an

individual as opposed to those of the group or organization.

However, at managerial levels incentives are often based on the performance of the managers

work unit. The main advantage of the individual incentive system is that the employees can

readily see the relationship between what they do and what they get.

With group plans this relationship is often not very clear.

TYPES OF INDIVIDUAL INCETIVE PLANS

1. Piece – Rate Plans

Under such a plan the employer pays an employee a certain amount for every unit he or 

she produces. In other words, an employees wage is figured by multiplying the number of 

units produced by the rater of pays for each unit.

2. Plans Based on Time Saved

These gives an employee a bonus for reaching given leave of production or output in less

than the standard time

3. Plans Based on Commission

Many salespeople work under different types of commission plans. Sales people are

rewarded based on sales volume. There is the straight commission method and the method

that combines commission with salary.

2. GROUP INCENTIVES

These are incentives based on groups rather than individuals. With this incentive, all group

members (say a department) receive incentive pay based on such factors as profit or reduction

in cost of operations.

TYPES OF GROUP INCETIVES

1. Profit sharing or gain sharing

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5. To establish and nurture the growth of industrial democracy based on labour partnership and

 joint participation in decision –making.

SCOPE OF INDUSTRIAL RELATIONS WORK Administration

Industrial relations work covers the following areas.

i. , including overall organisation supervision and co-ordination of industrial relations.

ii. Liaison with outside groups and personnel departments as well with various cadres of 

management staff.

iii. The drafting of regulations, issues procedures as orders and their interpretation.

iv. Training and apprentices production workers, foremen etc.

v. Medical and Health services

vi. Maintenance of employee records for all purpose.

vii. Benefit retirement and pension programs.

viii. Employee relations, especially collective bargaining with representatives and setting

disputes.

ix. Suggestion plans and their uses in management

INDUSTRIAL PEACEIndustrial harmony and peace can be established if 

a. A machinery for the prevention of industrial disputes is provided in the form of legislative

encactimes and administration actions. For example, The Trade Act and the industrial

Management Councils etc.

b. The government has armed itself with appropriate power to refer the dispute to an adjudicator 

when the situation gets out of control and the industry is faced with economic collapse due to

continuation of the strike or when it is urgent and in the public interest to refer the dispute to

adjudication.

c. The government has the power to maintain the status quo and exercises it when it discovers

that after a dispute has been referred to an adjudicator, a strike or go-slow continues.

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d. There is provision of dipartite and tripartite forms for the settlement of disputes which operate

on the basis of a code of discipline in industry the code of conduct and the grievance redressal

 procedure.

e. Implementation and evolution committees are created and maintained for the specific purposes

of ensuring the implementation of agreements, settlement s and awards.

TRADE UNIONISM

DEFINITION

A trade union is a combination of persons, whether temporary pr permanent with the primary purpose

of regulating the relations between workers and employers or between workers themselves.

A trade union is a voluntary Association of the salary or wage earners engaged in whatever industry or 

trade formed for safeguarding the interest of members maintaining and improving the conditions of 

their working lives and securing better relations between them and their employers.

OBJECTIVES OF TRADE UNIONS

1. To get economic security for workers i.e. steady employments with adequate compensation

2. To restrain the management from taking any a union which is irrational illogical or 

discriminatory or prejudicial to the interests of labour workers devise fairness in promotions,

transfers, maintenance f discipline, lay off and retirements.3. To communicate workers views, ideas and aims to the management i.e. they want to have an

effective voice in matters that affect their welfare.

4. To secure protection from economic hazards beyond their control for example illness,

accidents, unemployment, temporary or permanent disability etc.

5. To foster good working relations among employees and also between employers on the one

hand and employees on the other.

FACTORS INHIBITING THE ACHIEVMENT OF TRADE UNION OBJECTIVES

1. There is little awareness of the importance of mutual insurance against unforeseen negative

occurrences.

2. Most trade unions have traditionally acted as resistance organisations and this has created

hostility and distrust between them and employers.

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3. Some trade unions suffer from class conflicts inter-union and intra-union rivalry, financial

weakness (explain to students)

ESSENTIALS OF A SUCCESSFUL TRADE UNION

To be successful, a Trade Union;

1. Should be well informed about the interest of workers. This pre-supposes the existence of good

leadership.

2. Should have a strong foundation i.e. well rooted among the workers fraternity.

3. Should have clearly enunciated objectives and coherent and well conceived policy.

4. Should be run by members for members that is its leaders should come from the rank and file.

5. Should have honesty and integrity of purpose especially on financial matters.

6. Should look beyond its own horizon and recognize its proper role in the life of nation.

7. Should be democratic so that the workers’ right of self determination becomes a reality.

PRINCIPLES OF TRADE UNIONISM

Trade Unions function on the basic three (3) cardinal principles

i. Unity is strength

Trade unions draw their strength from their solidarity with their members. This spirit of 

solidarity inevitable fosters unity.ii. Equal pay for equal work 

This principles is included as one of the principle of the International Labour Organisations

(ILO) Charter which says “men and women should receive remuneration for work of equal

value.”

iii. Security of service

This enjoins upon Trade Unions that they ensure social and economic security for their 

members.

CONCEPTS OF HUMAN RESOURCE MANAGEMENT

JOB ANALYSIS

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This is the process of gathering information in terms of what is necessary and relevant for a job.

Essentially, Jon Analysis required an examination of 3 questions:-

i. What is a job?

ii. What is to be analysed?

iii. What methods of analysis should be used?

What is a job?

A job is essentially similar activities or a task performed by a person or group of persons. These

activities o tasks together become a job. These tasks or activities need to be identical

What should be analysed?

• Fundamental purposed of the job.

• Importance of the job and its relationship to the total

operation.

• Tie spent on each task as specific area of responsibility .

• Scope o the job and its impact on the entire operation.

• Inherent authority and latitudes of action.

• Specified methods equipment or techniques required for the

 job.

• Job climate and work environment.

What methods of analysis

• Collect information through the questionnaire process.

• Direct observation to understand fully the role of the job.

• Time study reports can also be used.

JOB DESCRIPTION

Compiled job information is illustrate into job description. Job descriptions are written records of 

duties and responsibilities of a job which provide a sound basis for job evaluation.

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Job description are record on a standard form in a information format job description also outline a

 basic specification of the job e.g. the kind of experience or qualification required to do the job.

It may also include soft-skills like inter-personal skills analytical ability, decision-making skills etc.

JOB DESCRIPTION OBJECTIVES

1. Proper recruitment and staffing in the organisation.

2. Reviewing performance of employees.

3. Improving performance through appraisal and training.

4. Rewarding employees.

JOB EVALUATION

This is the process of Determing the worth of one job in relation to another in an organisation. It

analyses the content of jobs to place then in some standard rank order. In the end, it is used to set up a

fair and logical remuneration system.

JOB EVALUATION OBJECTIVES

1. To reduce turnover.

2. To increase output.

3. To improve morale.4. To reduce wage negotiation disputes.

JOB EVALUTION METHODS.

1. Ranking method.

2. Classification method.

3. Point-Ranking method

4. Factor comparison method.

JOB DESIGN

Job design is important because work undergoes constant modification especially due to the impact of 

modernization and automation.

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Some jobs become redundant while other are created and still others are altered in content. This is

called job-design.

JOB ASSESSMENT

Job Assessment is the close observation and inspection of jobs by assessors who have information

made available to them. If required, the assessors could question supervisor and workers to collect

further details about the job.

The major destination between Job Assessment and job Analysis is that the former may be done at

any time to determine the value of a job to the firm while the latter is mostly done to know what kinds

of people to place in what positions.

MODERN INTERGRATIVE PERSPECTIVES ON HUMAN RESOURCE MANAGEMENT

HUMAN RESOURCE INFOAMTION SYSTEM (HRIS)

In today’s organisation, the computer has become an indispensable tool of data storage and

communication. Major uses of the computer are therefore to gather information, analyse this

information and communicate it.

Increased Human Resource requirements government regulations and expanded micro-computer 

capabilities have all helped, justify the need and feasibility of an information system within the Human

Resource Department. These information systems are referred to as Human Resource Information

System - HRIS

An HRIS is a database system that contains an relevant Human Resource Information and provide

facilities for maintaining and accessing these data.

USES OF HRIS

1. Clerical Application.

Automating certain routine clerical tasks will avoid the use of additional staff and overtime.

2. Applicant search

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An HRIS can easily store a summary of applicant qualified and consequently perform search

for candidates for certain positions.

3. Risk Management

An HRIS can be used to monitor safety training for employee, availability of licenses and

certification, etc. This makes it possible to identify and report discrepancies by job holders.

4. Training the management

An HRIS can compare job training requirements with the actual training experience of 

individual job holders. This system can then be used to determine both organizational and

individual training needs.

5. Training Experiences

An HRIS can provide organisation wide training and development experiences especially for 

 jobs requiring the use of computers.

6. Financial Planning

An HRIS assists Human Resource Mangers to simulate the financial impact of salary and

compensation changes. The Human Resource Development can then recommend change to

salary scales that stay within the overall budget.

7. Turnover Analysis

Turnover can be closely monitored by HRIS and the cause identified and analysed.

8.Succession PlanningA logical progression path and the steps required for advancement can be identified by RHIS.

9. Compliance with Government Regulations.

An HRIS keeps manager well informed of Government laws and regulations.

10.Attendance Reporting

An HRIS can easily track information about vacations, sick days, personal time, sabbatical

leave, tardiness and even shoddy work.

11.Human Resource Planning

An HRIS can make staff projections based on current workforce.

12. Strategic Planning

HRIS’s are to day transforming Human Resource Managers from simple administrators to

strategic planners who can influence decisions

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At the most basic level, a computer, a modem and the right type of software can get a person onto the

internet