Human Resource management

The application of Human Resource Management principles is the same to other management functions like accounting and finance or even IT

The health sector in many parts of the world is still weighed down by the superiority of government power involved in the sector. This has had the impact of slowing down human resource changes as opposed to other sectors

Human Resource Management the management of an organizations most valued asset the people working there who individually and collectively contribute to the achievement of the organizations objective.

To improve the productive contribution of people to the organization in an ethical and socially responsible way

HR Managers administer the contract of employment which is the legal basis of the employment relationship within that framework.

Managing resourceful humans require a constant balancing between meeting human aspirations of people and meeting the strategic and financial needs of the business.

The Strategic Nature HRM must beforward-thinking, support the business strategy, and assist the organization in maintaining competitive advantage.

Strategic EnvironmentGovernmental LegislationLabor UnionsManagement Thought

Governmental LegislationLaws supporting employer and employee actionsLabor Unions Act on behalf of their members by negotiating contracts with managementExist to assist workers Constrain managersAffect non unionized workforce

Four basic functions:StaffingTraining and DevelopmentMotivationMaintenance

Integration implies employee relations to align the interest of employees, the management and the union.Industrial relationsParticipationCommunication

Maintenance Ensures a continuation of able and willing workforce.Health and safetyWelfare

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.

Human resource planning 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 organization achieve its overall strategic objectives.

Recruitment - finding and engaging the people to fulfil organizations needs.

It is hiring the best qualified candidate for the job from within or outside the organization, in a timely and most cost effective manner.

In order for an organization to succeed in their business, it has to have the right people.

Therefore, the quality of people in an organization determines its success hence the significance of recruitment.

Internal recruitment refers to identification of workers within the organization to fill vacant positions.Advantages:Boosting employee morale:

Less costly:

Improves profitability:Disadvantages

Risk of stagnancy of ideas:

Risk of weaknesses flourishing:

External recruitment refers to identification of workers outside the organization to fill vacant positions.

AdvantagesNew skills and knowledge:

Impact of more liveliness:

DisadvantagesCostly:Time consuming: It can be time consuming getting the right fit.

Overtime: The current employees are made to work extra time and are paid for that. Payment can be in monetary terms or in time-off from work, depending on the organizations HR policies.Temporary employees: This applies mostly when deadlines have to be met. Additional hands are hired since subjecting workers to overtime would not be of great help.Consultants: This category of human resource are usually highly specialized and freelance in status. Their spectrum range from individual entities to large companies as suppliers of their expertise.

The Employment Act 2007 and government requirements outlined by the Revenue Authority describes the payment rates for certain categories of employees as well as taxation rates for each category for those handled under the 4 alternative ways of recruitment outlined above.

Should Include the following:Name and address of the employee

Name of the employer

Job title and description of position

Date of employment commencement

Form & duration of contract

Place of work

Hours of work

Pay/Remuneration & other benefits

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. HR policies enable organizations carry out their objectives in the desired manner they create order.

They ensure employees are informed of the employers expectations.

They protect the common interest of all parties in the organization

Organizational structureEmployment policyHuman resource developmentStaff relationsBenefits policyOther policies may include: Recruitment, Selection and Placement policies, Staff Rules and regulations, Separation policies, Termination procedures, Communication etc

Is concerned with assisting employees to develop up-to-date skills, knowledge, and abilities

Orientation and socialization helps employees to adapt

Four phases of training and developmentEmployee trainingEmployee developmentOrganization developmentCareer development

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.Induction is normally done during the probation period that runs for 3-6months.

Orientation may be done by the supervisor, the HRM staff or some combination. Formal or informal, depending on the size of the organization.

Covers such things as:The organizations objectivesHistoryPhilosophyProceduresRulesHRM policies and benefitsFellow employees

Employee training a learning experience designed to achieve a relatively permanent change in an individual that will improve the ability to perform on the job.

Employee development future-oriented training, focusing on the personal growth of the employee.:

On-the-job training methodsJob RotationUnderstudy Assignments

Off-the-job training methodsClassroom lecturesFilms and videosSimulation exercisesVestibule training

The design of an organizations compensation system may have a critical impact 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

EfficiencyQualityPerformanceCost

Fairness

Compliance

Financial rewards include:wagesbonusesprofit sharingpension planspaid leavespurchase discounts

Non-financial rewards emphasize making life on the job more attractive; employees vary greatly on what types they find desirable.

Attract and motivate people with the necessary characteristics to succeed in their jobs.

Retain employees who are satisfied.

Reward employees for effort, loyalty, experience and achievement

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 perspectiveFrom an ethics in business viewpoint Good employee morale requires payroll to be paid timely and accuratelyThe primary mission of the payroll department is to ensure that all employees are paid accurately and timely with the correct withholdings and deductions

It is a process of continually feeding back to subordinates information regarding their work performance.

Purposes of a Performance Management SystemFeedback - let employees know how well they have done and allow for employee input.

Development identify areas in which employees have deficiencies or weaknesses.

To Inform staff how their current performance is being rated

Identify staff who deserve salary increases

Locate staff who need additional training

Identify candidates for promotion

Possibility of advancement often serves as a major incentive for superior managerial performance with promotions being the most significant way to recognize superior performance.Promotions should be fair based on merit and untainted favoritism.Staff bypassed for promotion frequently feel resentful which affects morale and productivity.It is important to consider discrimination against women, the aged and minority groups.

it is important to understand what motivates people. High performance is achieved by well-motivated people who are prepared to exercise discretionary effort. In order to motivate people, it is important to appreciate how motivation works.

Motivation and moneyMoney 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 to symbolize so many intangible goalsIt is important to consider other factors of motivation other than money.

Is managing and maintaining the employment relationships which involve handling pay-work bargain, employment practices, terms and conditions of employment, issues arising from employment, etc.

Employers want engagement and commitment whereas the employees want a say in how much they are rewarded, terms and conditions of employment, security, healthy and safe work environment etc.

Good employee relationships results into improved staff morale and commitment, fewer grievances, increased productivity and better control of labour costs.

There are three groups of parties to the employment relationship who duly interact with each other in all circumstances:The employers and employeesThe 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 employment relationship also include:Staff associationsEmployers (industry) associations e.g. KAMVarious institutions and agencies e.g. Human Rights or gender rights movementsThe HR function

Workers indisciplinePoor working conditionsManagements intolerant attitude towards workersInadequate pay structureHeavy work loadsPoor attitude of supervisors lack of human relations skillsUnfair labour practices victimization, dismissalsIntroduction of new technology without adequate preparation

Is handling grievances should provide a guideline and the approach in dealing with them. Employees should:Be given fair hearing by the immediate supervisor/management concerning any grievances they wish to raise.Have the right to appeal to more senior management against a decision made by their immediate supervisor.Have a right to be accompanied by a fellow employee of their own choice when raising a grievance or appealing against a decision.

It is a requirement by the laws of labour, that employers provide several types of insurances for the employees. In Kenya WIBA is compulsory insurance that all employers must take for their employees. These differ in scope and magnitude by region, by country, by industry/sector and by organization.

The scope follows what is governmentally defined but the magnitude is controlled by a myriad of factors including the organizational culture, the size of the organization and the relevance of the defined risks.

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

A staff member can be terminated due to the following offences but is not restricted to only them.On grounds of ill health and based on certification by a recognized medical practitioner

As a result of a consistently unsatisfactory performance, as outlined in the Staff Policies Manual of the organization.

Absence from duty without leave, or failure to report for duty at the end of a leave period without valid reasons.

As a result of dishonesty involving organizations property 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 compromise discipline, or bring the organization into disrepute.

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***Integration implies employee relations to align the interest of employees, the management and the union.Industrial relations co-operating and negotiating with trade unions and staff associations.Participation jointly involving management and employees in making decisions on matters of mutual interest.Communication creating and transmitting information of interest to employees.Maintenance Ensures a continuation of able and willing workforce.Health and safety ensuring health and safety programs are administered.Welfare caring for the employees needs and helping them with personal matters e.g. through counseling, bereavement issues etc.Employment and personnel administration Ensures the organization meets the legal requirements within which personnel policies, practices and procedures operates.Ensures terms and conditions of service conform to employment practice and procedures.Also deals with provision of information systems and other records to provide data base and assist in decision making.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.

*Policies are broad guidelines which govern relatively important actions in an organization. Rules are specific, an offspring from policies.HR policies can be expressed as overall statements of the organization philosophy and of its values.The overall policy defines how the organization fulfills its social responsibilities for its employees and sets out its attitudes towards the workers.Its an expression of its values or belief about how people should be treated. Any organization gets its reputation from its value systems.Policies define philosophies and value of the organization on how people should be treated. It is from these policies that principles on how managers are expected to act and behave when dealing with HR matters are derived. HR policies enable organizations carry out their objectives in the desired manner they create order.They ensure employees are informed of the employers expectations.They protect the common interest of all parties in the organization

*Organizational structure composition and roles of different teams in the daily running of the organization.Employment policy statement on equal opportunity employment, salary policy in relation t the labor market etc.Human resource development statements on staff training and development and the criteria used for identification of training needs.Staff relations statement on managing the diversity of employees in terms of race, tribe, sex and age. Statement on approach to the right of employees to represent their interest to the management through staff associations, trade unions or other forms of staff representatives systems.Benefits policy on provision of benefits and what categories of employees are entitled to what. The objective of benefits in relation to resource availability.Other policies may include Recruitment, Selection and Placement policies, Staff Rules and regulations, Separation policies, Termination procedures, Communication etc

*Components of Reward management includeBasic pay rate for the job as affected by the internal and external labor market.Benefits extras given to employees on top of their base pay at the cost of the employer.Reward system reward policy and the procedure used to manage rewards in an organizationJob evaluation definition of the relative worth of a job attaching monetary value so employees are paid accordingly.Pay structures basis for attaching the minimum and the maximum payable for every job in the organizationNon financial rewards do not involve direct payments and involve the work itself e.g. recognition, training, career development, high quality leadership.

*Payroll plays a major role in an organization for several reasons. From an accounting perspective, payroll is crucial because payroll and payroll taxes considerably affect the net income of most organizations and they are subject to laws and regulations (e.g. in the US payroll is subject to federal and state regulations). From an ethics in business viewpoint payroll is a critical department as employees are responsive to payroll errors and irregularitiesGood employee morale requires payroll to be paid timely and accurately. The primary mission of the payroll department is to ensure that all employees are paid accurately and timely with the correct withholdings and deductions, and to ensure the withholdings and deductions are remitted in a timely manner. This includes salary payments, tax withholdings, and deductions from a paycheck.*It is important for managers to differentiate between the current performance and the promotability (potential performance) of staff. It shouldnt be assumed that a person with the skills and ability to perform well in one job will automatically perform well in a different or more responsible position sometimes people are promoted to positions in which they cannot perform adequately.

A manager and a subordinate should set performance goals together and then evaluate progress toward those goals. Participatory appraisal leads to both greater satisfaction and higher job performance.

Why appraise? To Informing staff how their current performance is being ratedIdentify staff who deserve merit raisesLocate staff who need additional trainingIdentify candidates for promotion

Approaches to performance appraisal include:-Superior rating subordinatesA group of superiors rating subordinates. This approach relies on a number of views and is thus more effective than appraisal by a single superior. However it is time consuming and often dilutes subordinates feelings of accountability to their immediate superior.A group of peers rating a colleague this is not a common approach, except in military used to identify leadership potential.Subordinates rating their managers it helps managers to improve their performance too.

*Establishment of performance standards Derived from companys strategic goals. Based on job analysis and job description. Communication of performance standards to employee. Measurement of performance using information from: personal observation statistical reports oral reports written reports Comparison of actual performance with standards. Discussion of appraisal with employee. Identification of corrective action where necessary. Basic corrective action deals with causes.

*Activities in HRM concerned with helping employees exert at high energy levels.Implications are:IndividualManagerialOrganizational Function of two factors:AbilityWillingnessRespect

*There are several ways depending on the prevailing circumstances, these include:-Lay offs temporary separation from employment after which an employee is recalled back for duty, if not a definite layoff. This is usually as a result of disruption in business operations.Resignation done by the employee for various reasons.Dismissal or discharge due to misconduct or employees incapacity to perform.Retrenchment termination of employees services due to replacement of human labor by machines, closure of a department due to continuing lack of demand for product or service offered, or result of mergers, acquisitions, etcRetirement separation upon reaching a certain age. Can be voluntary (retiring before the due date) or non voluntary.Redundancy occurs when an organizations need for employee to do work of a particular kind has ceased or diminished. Demotion a downward move within the organization.

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