Business Training HRM

7/21/2019 Business Training HRM

1/54

Session 1: Human Resource managementBarbara Gatumuta HR Consultant


2/54

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


3/54

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.


4/54

The purpose of HRM is to improve the productive

contribution of people to the organization in an

ethical and socially responsible way


5/54

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.


6/54

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.


7/54

Strategic EnvironmentGovernmental LegislationLabor UnionsManagement Thought


8/54

HRM Strategic Environment includes: Globalization

Technology

Work force diversity

Changing skill requirements Continuous improvement

Work process engineering

Decentralized work sites

Teams Employee involvement

Ethics


9/54

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


10/54

Four basicfunctions:

Staffing Training and

Development

Motivation

Maintenance


11/54

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.


12/54

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.


13/54

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.


14/54

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.


15/54

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


16/54

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.


17/54

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.


18/54

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.


19/54

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.


20/54

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


21/54

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


22/54

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.


23/54

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


24/54

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


25/54

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


26/54

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.


27/54

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.

:


28/54


29/54

On the job training methods Job Rotation

Understudy Assignments

Off the job training methods Classroom lectures

Films and videos

Simulation exercises

Vestibule training


30/54

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.


31/54

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


32/54

Efficiency Quality

Performance

Cost

Fairness

Compliance


33/54


34/54

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.


35/54

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).


36/54

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


37/54

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


38/54


39/54

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.


40/54

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


41/54


42/54

Managers shifting standards

Rater bias

Different rater patterns

The Halo effect


43/54

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.


44/54

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


45/54

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.


46/54

Good employee relationships results into improved

staff morale and commitment, fewer grievances,increased productivity and better control of labourcosts.


47/54

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


48/54

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.


49/54

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


50/54

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.


51/54

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.


52/54

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


53/54

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.


54/54

THANK YOU.

Documents

Business Training HRM