MANAGEMENT 1

MANAGEMENT
1
WHAT IS MANAGEMENT?
“Management” or “Manage” is one of those
words which is used everyday, which we think
we understand until we are asked exactly
what it means. The word “manager” takes its
root from French “manageur” which means
control, organise, direct, and plan. Generally,
management may be viewed as a process that
enables organisations to achieve their
objectives.
2
Definitions of MANAGEMENT
I Classical definition by H Fayol
“To manage is to forecast and plan, to organise, to
command, to co-ordinate and to control.” the
emphasis is on (the authoritative role) of
management but fails to mention motivation or any
special qualities of leadership.
3
II Peter Drucker defines management as making
Resources productive, being the organ of society,
specifically charged with making resources
productive. He points out the need for a sense of
social responsibility on managers
His analogy with animal world (management:- Tasks,
Responsibilities, Practices”) comparing a business
operated by an owner-entrepreneur with “helpers”
Drucker talks about size of an organisation and its
management. The larger the size the need for size of
management.
4
III Kast and Rosenweig- relate management to the
environment in their book “ The management of
Systems.”
They see a firm as a system which exists within larger
terms (Its environment) and which must adjust to
those larger system in order to survive and grow.
They define “management” as involving the
coordination of human and material resources
towards objective accomplishment. It is the primary
force within organisation which coordinates the
activities of the systems and relates them to the
environment.
5
They stress on employment of resources and
objectives. The definition also tends to look at that
part of management function within an organisation
as ensuring that the organisation relates to what the
environment covers.
Koontz and O’Donnell also define “Management”
stressing on environment.
6
IV John Marsh – “Management is an art and science
concerned with the proper, systematic and profitable
use of resources in all sections of a nation’s
economy.”
V R. Falk, Rosemary Stewart- They define the term
“management” as getting things done through
people.”
Reference: Study Manual (pp 2 & 3)
7
Organisations and Management
Management is an essential ingredient in organisations,
because it is the only tool that can create the
conducive situation in which an organisation can
achieve its objectives. Management is needed in all
cooperation and at all levels of organisation in an
enterprise.
E.F.L Brech:- Management as a process.
“Management is a social process entailing
responsibility for effective planning and regulation of
the operations of an enterprise in fulfillment of a
given purpose.”
8
Components of the Process
a) Planning
• Forecasting
• Goal setting
• Decision making
b) Organising and directing
• Organising- arranging for the work to be done
(allocating of resources)
• Directing- ensuring that employees are
appropriately engaged in working on activities to
meet goals and plans. (Involves motivating and
supervising staff for effective performance.
9
c) Controlling
• Process of monitoring and regulating
performance (measurement and evaluation of
activities)
• Control also involves taking the appropriate,
corrective action to ensure that performance
is done according to expectations.
10
Management of Activities
• Determining objectives (goal identification/
objectives)
• Problem identification for solution
• Searching for solutions-(alternatives) considering
time and cost
• Determining of the best solutions – choosing the
best method for resolving problems considering cost
effectiveness (effectiveness and efficiency)
• Implementation – seeking agreement for funds.
11
• Preparation and instructions (effective
communication)
• Execution of agreed solutions – (meeting
organization goals and objectives) utilizing
human resource, placing staff at the right
place.
• Devising and discharge of an auditing process
– continuous monitoring and assessment to
determine the success of activity.
12
Roles
Description____________
Interpersonal
Figurehead- formal, representational,
and symbolic duties
Leader
- relationship with subordinates –
motivating, communicating, coaching.
Liaison
- contacts with others outside work unit
Informational
Monitor
- ensuring acquisition of information
necessary for work
Disseminator - information distribution
Spokesperson - formal provision of information
on behalf of organization.
13
Roles
Decisional
Entrepreneur
Description________
- initiating, developing and
facilitating
change and information.
Disturbance
- trouble shooting problems when
they arise.
Resource allocation - distributing and arranging use of
resources.
Negotiator
- Representing organization in
negotiations within area of
responsibility.
14
HUMAN RESOURCE MANAGEMENT
15
HUMAN RESOURCE MANAGEMENT
Scope and Definition of Human Resource and
its Importance.
Definition – HRM is concerned with People: It is
a dimension of management in organizations,
made up of people, acquiring their services,
developing their skills, motivating the high
levels of performance and ensuring that they
continue to maintain their commitment in
order to achieve organisational objectives.
16
David Denzo and Stephen P. Robbins 1998
Robert Math’s and John H. Jackson define HRM as “a
key ingredient affecting organizational effectiveness
of an organization in product or service that fits”.
Customers need is critical to its survival. HRM has
recently grown to become a strategic tool in
management through the effective use of its
employees, which results in competitive advantage
to an organization. HRM systems that focus on
performance of organizations have shown
remarkable financial improvement and higher
profitability.
17
It is about the efficient utilization of human
talent to achieve organisational goals.
HRM – is simply defined as “a strategic and
coherent approach to the management of an
organisation’s most valuable asset (the
people) working there, who individually and
collectively contribute to the achievement of
its objectives.”
18
Main features of HRM
• Strategic management of people (the human capital)
in the organization which achieves ‘fit’ or integration
between the business and Human Resource strategy.
• Comprehensive approach to the provision of
mutually supporting employment policies and
practices.
• Gaining commitment to the organizations mission
and values – it is commitment –oriented.
19
• Treatment of people as assets and not cost
and as human capital to be invested in
through learning and development
opportunities.
• Concerns with employee relations, employees
sharing the same interest with employers
• Delivery of HRM as a line management
responsibility.
20
•
•
•
•
•
•
•
•
•
Goals of HRM
Achieving high performance through people
Enhancing motivation, commitment and engagement
Human capital development
Knowledge management
H.R. development
Valuing employees
Employee relations
Bureaucratic administration
Centralization of personnel functions for
departmental initiative.
21
Goals of HRM contd
• Centralization of personnel functions for
departmental initiative
• Political dimension of Personnel Management
in Public sector e.g. Position of Chief
Executive.
22
Evolution from Personnel Management to HRM
Personnel Management – traditionally characterized
by a technician mentality. Level of authority for
personnel-related activities and decision was low
because personnel managers operated under the
ambit of Finance and Administration Directors.
Several organizations had personnel-related activities
whose duties were mainly administrative, ie filing,
logistics, leave rosters, running errands, providing
refreshment, etc.
23
Models of PM
• Clerk of works model – routine administrative
functions only are allowed or are the only
functions to characterize the management of
people. It is inadequate and highly inappropriate
to the emerging needs of today’s business.
• Contract Management Model – Improvement on
the clerk of works model.
• Architect Model
- Best model for
HRM. Professionalism and a high level of
involvement in corporate decisions characterize
HR function.
24
•
•
•
•
Effective HRM
Day-to-day dimension
Daily production
Administrative
Its aim is to ensure that people are healthy and
attend to work in good environment.
Effective HRM – implies ability to produce results
• Ineffectiveness has consequences
• Productivity
• Organizational survival
• Workers – poor relationship
• Stress
• Poor commitment and poor motivation
25
Techniques of Strategic HRM
1. People skills
• Human Relations – treat people as human beings and not
as objects
2. Communication skills
• Top-down – Bottom-up
• Open door – participatory involvement
3. Supervisory skills
• Control
• Oversight
• Delegation
• Task skills
• Job planning
• Performance Management (Effective)
• Leadership (by example)
26
Competencies required of HRM Professionals
•
•
•
•
•
•
Personal drive and effectiveness
People management and leadership
Professional competence (skills)
Adding value through people
Continuing learning
Thinking and applied resourcefulness (application
to a systematic approach to situational analysis;
convincing business focused action plans,
intuitive, creative thinking.)
• Customer focus
• Strategic capability
• Influencing and interpersonal skills
27
Soft HRM (Personnel Administration)
Reaction-Service role
• Emphasis on communication, motivation and
leadership
• Implements procedures and policies
• Treats employees as valued assets
• Employees seen as means rather than objects
• Sets commitment of employees through involvement
and communication
• Builds trust
• Common interest between employees and
employers but interest of organization overriding
those of the individual
• Supporting change
28
Hard HRM
Proactive/ Innovative
• Business –oriented approach
• Result- oriented
• Seeks competitive advantage
• Regards people as human capital for value
• Strategic policies for results
• Human capital to be invested and not as cost
(training and dev.)
• Initiates change
29
Activities of HRM
• Organizational design
• Organizational development
• Job and role design
• Human resource planning
• Talent management
• Recruitment and selection
• Career development
• Salary administration
• Health and safety
• Welfare service
30
Questions for assignment
• Indicate a number of peculiar Human
Resource problems or issues confronting your
company/organization and suggest
professional solutions to three of these
problems based on your knowledge of HRM
gained from this course.
• Give clear definition of HRM and state its
scope. Differentiate between ‘soft’ and ‘hard’
HRM
31
References : 1. Human Resource Management (2004)
Robert L. Mathis Etal, 10th Edition
•
2.Personnel and Human Resource Management
(2005), 5th Edition by G. A. Cole
•
3. A Handbook of Human Resource
Management Practice – Michael Armstrong (2003)
9th Edition
•
4. Personnel/Human Resource Management,
David A. Deconzo and Stephen P. Robbins 3rd edition
•
5. Essential Elements of Human Resource
Management – Modular Series 1995, Sally Howe.
32
INTERNATIONAL
HUMAN RESOURCE
MANAGEMENT
33
33
INTERNATIONAL HUMAN RESOURCE
MANAGEMENT
International HRM – is the process of employing and
developing people in international organizations
which employ people in Europe and other overseas
countries including those of the African continent. It
actually concerns itself with working across national
boundaries to formulate and implement resourcing,
developing, career management and remuneration
strategies, policies, strategies, and practices, that
can be applied to an international workforce,
including:
34
• Parent country nationals working for long
periods as expatriates or on short-term
assignments
• Local country nationals
• Third country nationals who work for the
corporation in a local country but are not
parent country nationals (eg German working
in West Africa for a British owned company)
35
Challenges
I.H.R.M can be more demanding than
management within the boundaries of one
country for the following reasons:
• Problem of managing the complex nature of the
workforce. Eg. Wholly owned subsidiary
companies may employ both host and parent
country people together with third country
nationals – problem with employment practices
as well as remuneration. A joint venture or
complex workforce consisting of expatriates of
the joint venture company, host country
nationals, third country nationals and experts
from any of the partners dealing with special
problems or provide consultancy services.
36
According to Kanter (1989) and others, such
problems include divided loyalties between
the parent company and the joint venture
consortium and the difficulties managers may
face in trying to be both sensitive to local
conditions and aware of the demands made
by the consortium of their own parent
company.
37
• Managing diversity – between cultures, social
systems and legal requirements. International
personnel managers are not in the business of
controlling uniformity – they would fail if they
tried.
• Communications – Global communication is a
major challenge. Even the most sophisticated
electronic communication system may not be
an adequate substitute for the face-to-face
communications.
• Resourcing international operations – with
people of the right calibre to deal with the
much more complex problems that may arise.
38
As Perkins (1997) points out, it is necessary for
businesses to remain competitive with their
employment offering in the market place for
attraction and retention of high quality staff
with world-wide capabilities.
39
Characteristics of IHRM
Torrington (1994) suggests that “IHRM is not just
about copying practices from the Americans,
Japanese, Germans, etc, which will not
necessarily translate culturally. Neither is it
simply a matter of learning the culture of every
country and suitably modifying “behavior in each
of them which is an impossible ideal because of
the robust and subtle nature of national
cultures.”
His definition of IHRM relates to the following
characteristics:
40
•
•
•
•
7 C’s
Cosmopolitan – members of high flying
multilingual elite or expatriates who may
relocate after a long time who will find
repatriation difficult.
Cultural diversity – major differences in
cultural background.
Compensation – special requirements for the
determination of the pay and benefits of
expatriates and host country nationals.
Communication – maintaining good
communication between all parts of the
organisation globally.
41
• Consultancy – need to bring in expertise to
deal with local needs.
• Competence – developing a wider range of
competences for people working across
political, cultural and organizational
boundaries.
• Coordination – devising formal and informal
methods of getting thee different parts of the
international business to work closer together.
42
Forms of Organisation and Governance
4 Organisational Models
1. Decentralized federation – traditional multinational
corporation. Each national unit managed as a separate
entity.
2. Coordinated federation – the centre develops
sophisticated management systems enabling it to
control. But local management given the opportunity
to adopt practices according to local market traditions.
3. Centralized hub – Focus on the global market rather
than the local. Japanese practice this hub model.
43
4. Transnational model – the corporation
develops multi strategic capabilities towards
global competitive capabilities.
Caution: - Perkins and Hendry (1999) sign a note
of caution as firms seem polarized along these
2 lines:
• Regionalization – where local customer is
important
• “Global business streams” – involved in setting
up centrally controlled business segments
dealing with similar products globally.
44
Cultural Diversity – Hofstede (1980) identifies a
number of cultural dimensions that affect
international operations as follows:
• Equality versus inequality.
• Certainty versus uncertainty.
• Controllability versus uncontrollability.
• Individualism versus personalization.
45
Sparrow and Hiltrop (1997) noted the following HR
areas affected by national culture:
• Definitions of effective manager.
• Giving face-to-face communication.
• Readiness to accept international assignments.
• Expectations of a manager – subordinate
relationships.
• Pay systems and differential concepts of social
justice.
• Approaches to organizational structuring and
dynamics.
Divergence to respect cultural differences may be
more appropriate if the full potential of the
overseas company is to be realized.
46
International Balancing Act
Balancing the needs of coordination, control, and
autonomy and maintaining the appropriate balance are
critical to the success of the multi-national corporation.
6 Capabilities to achieve this balancing act.
• Being able to determine core activities and non-core
activities.
• Achieving consistency while allowing flexibility.
• Building global brand equity while honoring local
customs.
• Obtaining leverage while achieving focus.
• Sharing, learning and creating new knowledge.
• Endangering global perspectives while ensuring local
accountability.
47
Employment Policies
1. Fill key positions with parent country
nationals
2. Appoint home country nationals.
3. Appoint the best people despite nationality.
(International image)
4. The third model is more favourable but has
to contend with some countries which insist
that their own nationals should be used at all
cost.
48
Managing Development Strategy
•
•
•
•
•
•
•
•
Recruitment and selection:- criteria
Technical competence
Previous achievement in the home country
Language skills
Motivation
Stress assistance
Goal – oriented personality
Communication skills
Family circumstances – how well the person and
spouse are likely to adapt to working overseas.
49
Career Planning to be designed to suit
international perspective.
Based on i.e.
• Talent and potential
• Job rotation
• Special assignment training
• Attendance of management programmes run
by international business schools.
50
International Employee Development
To implement international development
strategies and programmes along cultural
diversity factors and the impact of different
legal, political, social and value systems and of
the extent to which training should be left to
local initiatives or centrally controlled.
51
Managing Expatriates
-Most difficult aspect of international personnel
management. European multinationals face less
failure rate than American ones according to
Scullion (1995) because of the following:
• They felt they had more effective personnel
policies covering expatriates.
• Closer attention paid to the selection of
expatriates.
• International experience more valued.
• British managers more international in their
outlook than US managers.
52
53
LEADERSHIP
AND
MANAGEMENT
54
LEADERSHIP
Leadership is defined as the ability to inspire
confidence and support among people who are
needed to achieve set objectives/goals.
Distinction between management and leadership
In today’s world of business management is the ability
to lead and get result from people or a team
Management deals with planning, organizing and
controlling which are also ingredients of
leadership
55
Differences
Management involves getting things done
through people by way of delegation, where
as leadership is helping people to get things
done.
Leadership involves vision and team work about
the future and about the organization. The
leader thinks of what the organization will be
in future through team work. He motivates
and encourages employees but a manager
persists.
56
Management is more formal than leadership as
it rallies on universal skill such as budgeting,
forecasting, experience and expertise. But
leadership rallies on creativity, innovation and
passion.
57
Influences of leadership
Power
Leaders influence people and employees
through power and authority. This is the
ability to influence decision and control
resources. Power can control decision to buy
and sell, employment, paying, demotion of
staff and training. Power also controls money,
access, cost, expenditure, revenue and profit.
58
Authority
Authority is the formal right given to people to
do things in a formal or right way. It is only the
organization that can give authority to
someone but power can be acquired .E.g. if
the HR manager is not given the authority he
cannot sack any employee.
59
Types of power
For leaders to make their leadership effective
they require the following types of power. (Very
useful)
Expert power
Power derived from the leader’s job- related
knowledge as persists in the organization
It is derived from expert knowledge and skills.
Such power can be exercised even in the absence
of the leader.
Expert Power
Skill
Knowledge
Experience
60
Reward Power
This type of power is derived from the
leaders’ ability to reward people. E.g. the
ability to increase or decrease salary of
employees. Reward power is excised on
individual employees rather than team. It
results in hard work.
Legitimate Power
Power enables the leader to make certain
decisions whether favorable or not. This can
be given or acquired.
61
Coercive Power
Power associated with punishment to
offenders. Coercive power includes demotion,
salary reduction, inflexible working hours, Job
rotation, transfer or indefinite suspension.
.
Subordinate Power
This is type power employees can excise on
their junior employees. For example, an
accountant can request an accounts clerk to
work overtime.
62
Strategies of influence on leadership
• Leadership by example – service leading by
example must watch his words and actions. If
you, the leader wants your employees to report
to work early, you yourself must come early.
• Leader by value- A leader influences the people
by demonstrating value through behavior that
guides other people .If you the manager say the
worker should not fight you must not fight with a
customer. Should show positive attitude
63
• Assertiveness – what is expected of the
employee and not make his feeling known.
Can influence employees without looking at
his feelings.
• Rationality- influence through logic and
common sense
• Exchange – influencing employees by offering
something for a job done, e.g. giving a
command by exchange of bonus.
64
Charismatic Leader
Such a leader is the one who appeals to the
followers, not through beauty but by
appearance. He wins the heart of his followers
by what he says.
The drive to achieve
He is noted for effort to achieve greatness;
driven by achievement. He can motivate for
goal achievement. He sets high standard for
himself . The group must be passionate about
what he does.
65
•
•
•
•
Self Confidence
Must be self –confident in order to be an
effective leader, especially in decision making.
Project his self-image for followers to follow.
Must be independent –minded, when weighing
opinions.
Trust Worthiness
Must be trustworthy in keeping secrets.
Must be reliable in difficult and turbulent times.
Courageous and must be able to make bold
decision.
To exhibit moral and economic values.
66
•
•
•
•
•
•
•
Intellectual Ability
Technical know how about the organization
Intellectual ability to lead a team
Ability to share knowledge with team
members
Attitudes
Must seek after knowledge acquisition.
Must take interest in developing his followers
Must be focused and smart.
67
BEHAVIOUR OF LEADERS
Setting high standard by effective leaders of the
group they lead. Hold people responsible when
standard as not met . Encourages people to meet
goals and objective. Set higher expectation of
their followers and how to achieve them.
Emotional Support ; They provide moral support.
They encourage subordinates to achieve more
even at first failure. Provide frequent feedback to
employees through report and letters . Help
employees to overcome their weakness and build
their strength
68
Adaptive to change; Ability to change to
situation in order to achieve their goals. When
situation changes they adapt to new ways of
reaching their destination. Flexibility is one of
the goals of leaders.
69
TYPES OF LEADERSHIP
Success of leadership depends on the type of
style of particular leader. It also depends on
the type of particular leader. It also depends
on implementation of control and authority.
Leadership implies the exercise of power and
control.
70
Types of leadership styles
• Autocratic leadership – characteristics. He makes
decision in confidence and assumes the group
members will comply.
1. They do not concern themselves with group
members’ attitude towards their decision
2. Task- oriented who want a job to be done
3. Insensitivity- toward group members
• Participative leadership – three types
- Consultative
- Democratic
- Consensus
71
• Consultative leadership- leader confers with
subordinate before making a decision. The leader
brainstorm with the employee before coming up
with a decision. His decision, however is final.
• Democratic leadership –the leader brainstorms
with the employees/employers but then
delegates total decision to the employees. He
gathers data from all employees about their
opinions regarding certain issues and sometimes
takes vote before decisions.
• Consensus leadership – Discuss between the
leader and employees or members about an
issue. Decisions are not final until all parties
agree on a decision. Decisions are not final until
all parties agree on a decision.
72
Free –rein leadership- hands over total
authority and control to the group. Members
discuss and determine the outcome of the
issue and come out with the best way of
solving the issue. Subordinates/ members are
allowed all the freedom to decide on what is
best for the organization and submit to the
leader. The leader will only reject the decision
by the group only when it is against the
corporate policies, goals, objectives, short
term and long term plans.
73
• Theory X & Y Leadership- According to
McGregor, X &Y employees must be carefully
led since by nature they are lazy or
hardworking. If Managers misuse their
leadership style, X & Y employees may be
wrongly led. McGregor indicates that theory X
employees must be led by participative leader
with little application of autocratic leadership
style. There must be small punishment. The Y
poses that an employee who does not want to
be supervised must be led by free-rein leader
with little application of participative
leadership style.
74
Situational leadership- Such leadership style
demands application of either participative,
autocratic or free-rein depending on the
situation. It is the leadership style that is
applicable to the readiness of group members
to do as occasion demands.
Basis of the situational leadership under
situation model depends on the following
behavior of the employees/ members.
75
• Task Behavior ; where the leader carefully
outlines the responses and duties of the group
and individual. In this situation the leader should
look at the behavior of the appropriate at a time.
Autocratic leadership is needed under task
behavior when employees behavior controlling or
against what is expected of them.
• Relationship Behavior ;The leader enters intotwo-way communication with the employees. It
involves listening, providing encouragement and
coaching. What methods to apply is participative
style since it is two-way communication.
• Readiness Behavior : group members have the
ability and willingness to accomplish a specific
task. The leader should apply free-rein leadership
style when employees are ready to perform task.
76
• Entrepreneur Leadership; This is the type of
leadership that is seen in individual who start
their business from scratch. The entrepreneur
leader must have the following qualities.
a) Full of vision about the business
b) Can see the future
c) Can see new products
d) New objectives and goals
e) New competitors
f) Willingness to be active
g) Good attitude and value
h)Enthusiastic person
i) Creative and innovative – can build business from
nothing from small ideals into money business.
77
j). Adaptive to change when things are not
going according to plan
k). Persistence – does not give up easily on
difficult things
l).
Confident and willing to take a decision
alone
m). Ready to take responsibility ,must be
willing to do most of the job himself. Must not
delegate too much.
n).
Should not hold people accountable but
must also be accountable to his job. Accept
mistakes and final solution.
78
• Transformational/charismatic leadership- leader
who helps the organization and people to make
positive change in the way they do things. He
combines charisma, inspiration and intellect as a
leader. He motivates and has ideas about things.
He develops new visions for the organisation and
mobilizes employees to accept and work
towards the vision. Such leaders can turn a dying
business in to living business
• Charismatic leadership- he has the ability to lead
or influence others based on personal charm,
magnetism, inspiration, persuasion and emotion.
Can lead a team of employees to achieve a task
that they may not be willing to do.
79
•
•
•
•
•
•
•
•
•
•
•
Qualities of Leadership:Skill
Technology
perception
knowledge
physique
Memory
Imagination
Determination
Endurance
Courage
Affability.
80
Lord Montgomery defines Leaders as “one
who can be looked up to, whose personal
judgment is trusted, who can inspire and
warm the heart of those he leads, gaining
their trust and confidence and explaining what
is needed in language which can be
understood.”
81
Action—Centred Leadership (Functional Leadership
model)
Adair’s 3 responsibilities of a Leader
1. Task achievement
2. Building and maintaining a team
3. Satisfy and develop the individuals with the team
Task needs
paradigm shift in all
Team needs
- Balance needed
Individual needs
combination of all these
qualities result in Effective leader
But a leader must always be self-appraised.
• To achieve tasks
• To develop the team
• To develop the individual
82
Task needs
• Identify task and constraints
• Establish priorities (resources available)
• Decide on action
• Briefing
• Report on progress, monitor and ensure discipline
• Review objectives and attainment and re-plan
Team needs
Recognize success
• Involve team and share commitment with members
• Consult and agree on standards and structure of team
• Answer queries
• Co-ordination and co-operation
83
Individual needs
• Clarify aims with each person for acceptance
• Assess each member’s skills and set targets
• Advise , listen and enthuse
• Assist, reassure, recognize effort and counsel,
• Assess performance appraise, guide and train.
84
Task achievement
Team building
Individual
development
85
Contingency Theories
Fiedler’s contingency Model (circumstances)
Position power
Task structure
Leader- member relations
Situation Leadership
• Degree of task relationship
• Follower readiness
86
Appropriate leadership style for each level
R1 Telling
---- Providing specific direction
R2 Selling
---- giving direction, willingness,
supportive
R3 Participating ---- supportive style
R4 Delegating ---- little direction or support is
needed.
Handy’s Contingency model
• The manager
• The work group
• The task
• The organizational environment
87
HOW TRANSFORMATION OCCURS INTO
CHARISMATIC LEADER
A charismatic leader who lacks the skills of
transformational leader should do the
following to become a transformational
leader.
• Brain washing of the employees by
encouraging them on their weakness and
beyond .
• Must raise employee awareness about the
reward to the task
• Must help the employees to go beyond minor
satisfaction and go for major achievement
88
Characteristics of Transformation and
charismatic Leaders
1. Vision – Visionary leader is willing to die for his
vision, mixed with passion, confidence,
determination, self- motivation.
2. Communication skills –must know how to
convince people with motivational words e. g.
Obama must know how to communicate to
employees through the right channel. Must know
how to communicate on team basis as well as on
the individual basis.
3. Inspiration/ trust - Must have integrity, be
trustworthy so the followers are ready to follow
based on his values.
89
90
PRINCIPLES OF RECRUITMENT,
SELECTION AND INDUCTION
91
PRINCIPLE OF RECRUITMENT, SELECTION AND
INDUCTION
Recruitment - the generation of an applicant pool.
Selection is the choice of specific individuals to
join the organization.
The Recruitment and selection process is
concerned with choosing from a sample of
applicants. The individuals, best suited for the
jobs available.
It is normally used to decide who shall enter the
organization. Since the competitive edge of any
organization is direct function of the quality of its
human resource, the selection of the right caliber
of staff, represents a significant aspect of the
whole HR function.
92
• Recruitment - general exercise - casting the
wider net and at the right place for good
solution.
• Selection - process of making the choice advert, outsourcing
• Placement- generate accurate selection to
place them into various departments/
vacancies.
93
Process of Recruitment
The Position
* Qualification of applicant
* Gender
* Working experience
* Appearance
* Skills and expertise
* Future potentials
94
Attraction
* Salary (including bonus)
* Perks (e.g. discount of goods, overalls, canteen
services, other staff facilities)
* Hours of work
* Holidays
* Good leadership
* Welfare support
* Safety precautions
* Insurance
95
Purpose of Recruitment
Inviting applicants is most cost effective way to form a pool
of job applicants, potentially qualified to do a particular
job.
How Recruitment is done
* Advertisement of vacancy
* Short listing
* Interviewing
* Selection
Ways of recruitment
* Internal
* External
Internal recruitment - getting candidates from within the
organization (operation, Tactical and strategic) External through external advertisement / oral
96
Advantages of Internal Recruitment
• Saves cost
• Motivation to work hard (employees)
• Saves time
• To tap from existing staff and their expertise experience,
skill, knowledge (Not much training needed)
Disadvantages of Internal Recruitment
• Rivalry and conflict not palatable to organization
• Unhealthy competition
• Discourages hard work among employees
• Leads to favouritism, criticism
97
• Demotivation of employees
Advantages of External Recruitment
• Resulting in change of management of the
organization and its goals
• Downsizing by reducing the numbers of employees to
save cost (it also brings about stress)
• Leading to bureaucracy / delays of job or completion
of jobs.
98
Advertising
The process of creating the awareness of a job in
an organization to the general public.
Process of Advertising
• Job title (specific)
• The organization type (service or production)
• The person required (person specification)
experience, qualification, expectation)
• The pay and benefits offered
• Location of org.
99
• Job requirement (whether it includes travelling)
• Layout - attractive and interesting
• Brief summary of the job (how you report)
• Avoiding grammatical errors, spellings, typing, wrong
telephone numbers)
• Contact address including E-mail
• Realistic closing date.
100
External Recruitment Agencies
• Government agencies
• Private employment agencies
• Selection, consultants to provide a shortlist of
candidates. (direct contact candidates)
• Advertising agencies to design and place advertisement
(Note. Very expensive method)
The Traditional Position or Approach
• Whom do you know (contacts)
• Perfect match
• Academic Qualification
• Experience
The Emergent Approach
A focus on skills, intelligence, trainability and general 101
conscientiousness. (ability to do or apply knowledge)
Selection Policy - (to be available) are you recruiting?
* Fresh graduate always?
* Experience?
* Cream of the cream?
* Trainable people?
* Known as offering best salaries
* Need for selection - what organizational problems are
being identified to solve?)
Contemporary/General Approaches.
• Use of Executive search consultants
• In-house procedures
• Old-boy network and personal recommendations
102
Selection Process
• Receiving applicants-letters and forms, electronic CV's
sorting out applications and short listing by
looking at CV's
• Sending standard acknowledgement to applicants
• Comparing applications with critical analysis in the job
• Drawing an interview programme
• Inviting the applicants for interview
Interview
• Preparation (plan, set up interview panel)
• Implementing interview plan
• Follow up.
103
Methods of Selection.
Preparation includes short listing from pool of
applicants.
• Scheduling - giving enough time
• Reviewing CV's prior to interview date
• Why he left previous job
• Check referee e.g. (applicant's background)
• Issue circular to all departments
104
Process of Interview
• Welcome candidate with introductions
• Begin with self introduction
• Candidates to do most of talking
• Interviews to listen and put down notes
• Give them opportunity to ask questions
• Questions to be clear and unambiguous
• Avoid leading questions e.g. You will be right, will
you?
• End on positive note.
HR's concern relates to candidate's overall fit into the
organization and his/her contribution to corporate
goals. Functional department, unit or project team's
concern is ability to execute requisite tasks.
105
Likely Questions to ask.
• Did you leave school in 1989? (open)
• Did you get your professional qualification in 1992
and then decide that it was time to get a better job.
• What made you dislike your first job why was that?
(Probing)
• How good are you in making difficult decisions
(hypothetical)
• What would you do if your speed boat capsized on
the ocean? (probing question)
• What exactly was your contribution to the success of
the project? ( Probing)
106
Don’ts of Interviewing.
• Don't keep the applicants waiting
• Don't allow any interruption
• Don't interview without preparation and planning
• Don't ask tricky leading questions or too many closed
questions (eg.yes, no, I don't know)
• Don't lose control of the interview
• Don't fail to give the candidates information on the job.
• Don't display bias or prejudice
• Don't talk too much
• Don't allow candidate to gloss over important points
107
Do's
. • Give yourself sufficient time
• Plan the interview in order to structure properly
• Create the right atmosphere
• Start with open questions - establish
informal/friendly relationship
• Encourage candidates to talk
• Analyze his career to reveal his/her strengths,
weakness and interests.
• Make judgment about the factual information
received about candidate's experience
• Keep control over content and timing of
interviews
108
After Interview
• Access the outcome of interview
• Do a reference check
• Keep records
• Inform candidate
• Prepare a written offer of employment
109
Types of Tests
Validity OF Tests
(Justification)
• Intelligence Test
Must be able to
differentiate between satisfactory and
unsatisfactory
performance on the Job
• Personality Test - Aware of 3 types of validity
Content, construct and criterion validity
e.g. content- typing Test
• Psychomatic Test - Psychological
(personality
test)
110
Types of Tests
Validity OF Tests
(Justification)
• Ability Test
Construct observing various behaviors of applicants as
Related to tab
• Aptitude Test
Criterion Predictability of work behaviors e.g. relation
between test score and performance.
• Attainment
Validity - compare
post - employment (1 yr) evaluation . With
interview test result equal to success
111
INDUCTION PROGRAM
Induction is the process of introducing new
employees into the organization. It is the
method of helping employees to cope with a
new job with a strange organization and also
giving them the basic information they need to
settle down quickly and happily and start work
thereby encouraging him/her to stay.
112
Aims of induction
-Allowing new blood into the organization
-To encourage the new employee to become
committed to the organization
-To familiarize the new employee the job to
quickly dispel the feeling of the being out of
place in the organization.
Reasons for induction
Induction program must be designed to fit the
characteristics of the job and of its
organizational context.
113
• Process of induction - Induction training / courses and
procedures
• Disciplinary and grievance procedures
• Trade union membership and collective bargaining
arrangement
• Staff purchase arrangements and other "perks"
• Traveling and transport arrangement and allowance
• Medical and welfare facilities
• Canteen facilities
• Health and safety arrangement
• Education and training policies
• Pay arrangements
• Promotion practice and opportunities
• Open forum
114
DEPARTMENTAL INDUCTION
All departments conduct induction for their newly employed staff
within that department
ROLES
Department manager -welcome new employees to the department.
Supervisors - Explaining the job to the new employee and providing
support during the initial period
Fellow workers - Making the new employee feel welcome and
comfortable in the work group
Personnel staff - Explaining condition of employment very early in
the employment of the new comer
Training staff - Designing inductions courses or other training aids
relevant to the need of new employees
115
QUESTIONS FOR ASSIGNMENT
1. Discuss the process of recruitment to the point of
selecting the best candidate for the new job, giving
the reasons for recruitment in an organization and
show the importance of induction
2. State the acceptable behavior of an interviewer and
those that should avoid and state likely questions to
ask during interview
3. Discuss how you think recruitment and selection
issus impact on corporate profitability
116
INDUCTION PROGRAMME
A.
History of the organization
B. Vision and mission
C. The new employee role
D.Job description
E. Logistical issues
F. Industry information
G. Organizational structure
H. Terminology
I.
Company standards of performance, rules
J.
Compensation issues
K. Health and safety
117
INTRODUCE THE PROCEDURES
HR manual - Distribute corporate literature
What are the advantages of a well executed
orientation program?
1. Elimination of induction crisis
2. Facilities' that deepen the learning curve
3. Employee quickly decides whether this is the
place for me
118
PLACEMENT
Relevant when you do speculative / selective,
dependent on;
1. Proper assessment of potentials
2. Department and personal needs
3. A well structured training programme
119
TRAINING AND DEVELOPMENT
Training is a planned process which modifies
attitude, knowledge or skill behavior through
learning experience to achieve effective
performance in an activity or range of activities.
Its purposes, in the work situation are to develop
the abilities of the individual and to satisfy the
current and future needs of the organization as
defined by Manpower service commission UK
(1981)
120
Training as an element of HRD, must emerge from
a Human Resource Development Policy and plan.
Too often Training is taken as just another usual
organizational activity which must be undertaken
whether necessary or not. Perhaps because
workers expect to see it as a reward or just
because it is spelt out in CBAs
121
Training is done by;
1. The line manager
2. Training consultants
3. Training development officer
122
PROCESS OF TRAINING and Development
1. Training needs analysis
2. Matching the individual vs. org. needs
3. Training method (appropriate)
4. Post-training evaluation and monitoring
TRAINING COMPONENT
1. Needs assessment
2. Organizational
3. Task, job career
4. Individual
123
2. TECHNIQUES OF NEEDS ASSESSMENT
- Carrying out HR Audit (exposes employee to
training. Classification into age, gender, education
Experience and promotion ability)
What are the needs?
* Questionnaires - finding out from employee
* Data on performance appraisal
* Organizational survey
* Expanding - opening new branches
* Contracting - developing new products.
* Changing focus - whether current skills are to meet
needs.
124
•
•
•
•
•
•
•
•
•
3. DESIGNING TRAINING PROGRAMME
Drawing of program
Skills and knowledge
Objectives
Target audience
Mythology
Venue (in house, external)
Duration
Resources needed
Cost (budget)
125
ACTION DESIGN
Needs met and review
- Needs identified
- Try models designed
- Class Lecture
- Field work on job.
-Packaged
- Appropriate programme
Tailored - client specifics
- aimed at Objectives/ specific needs
126
Evaluating organisation costs
-Assessing the benefits of training
Measure monetary benefits (inputs) as opposed to outputs)
Has it been worth it (Time, money spent?)
Does it merit the cost?
Assess the content of Training. In terms of your needs, org.
and individual.
Does it address the performance gap (post-training
evaluation)
Reaction (post delivery - feelings )
Immediate - how trainees react to the programme i.e.
Delivery, logistics
Outcomes (performance)
Critique –has the delivery resulted in any change in job, 127
performance, attitude and behavior?
TRAINING & DEVELOPMENT
As part of HRD - need HRD plan and methods for
the job
THE JOB DESCRIPTION
• Performance objectives, Job Analysis, peer superior sub Data interview with job
incumbent.
• Methods for the individual
• Appraisal Data
• Training Policies
• Career Aspirations
128
NATIONAL TRAINING POLICIES
•
•
•
•
•
Youth Training schemes
Employer Initiatives
Placement schemes
Vocations Training
Continuing Development (Professional training)
CAREERS IN ORGANISATION
Organizational structure determines what is
possible.
129
TRAINING AND DEVELOPMENT
Definition of Training
Training is a learning experience in the sense that it takes a
relatively permanent change in the individual that will
improve his or her ability to perform on the job. Training
can involve the changing of skills, knowledge, attitude or
social behavior. It may mean changing what employees
know how they work, their attitude towards or their
interactions with their co-workers or their superior.
For purpose training will be presented as it applies
primarily to operate employees in an organization
130
Education
Education has been defined as activities which aim to
develop knowledge, skills, moral values and
understanding required in all aspect of life rather
than knowledge and skill relating only a limited
sphere of activity. It encompasses the concept of
why things happen, rather than simply how they
happen (or can be made to happen. This can help
to make skills transferable. Education is also about
the wider knowledge underpinning process and
procedures and their contexts. It is therefore, a key
element of development and closely associated
with professional development.
131
Learning
Learning is the process by which individuals
acquire the knowledge, skills and
behavior/attitudes which they use to deal with
all aspects of life. The study of learning is a
whole subject itself, but managers need to
understand certain aspects of the process in
order to enable others learn and develop. It
underpins the way in which effective training
and education is provided and a
misunderstanding of the process involved can
easily render such provisions ineffective.
132
Differences between education and Training
Characteristics of the
Learning process
Education
Training
Objectives
More intangible objectives
geared
To the needs of individual
and to
Society in general
Specific behavioral
objectives to
Make workers more
effectors
Time scale
General a long term process Can be very short term
especially
When concerned with
acquisition
Of specific skill
Content
Widely drawn content
Often very narrow content
Specific to the employee’s
workers situation.
133
Development is seen as any learning activity
directed towards future needs rather than
present needs, and which is concerned more with
career growth than immediate performance.
Focus: directed towards organization’s future
man power requirement b) on the growth needs
of the individual in the work place.
E.g. of development needs. The need for managers
to be able utilize the facilities offered by micro
computers in the operating of the business. The
need for replacing senior staff with potential
candidate From within the organization and the
need for preparing employees to accept change.
134
HOW WE LEARN
Learning Theories
• Operant Conditioning—Developed by skinner
(1953) researched into rats – their behavior
can change using negative and positive
reinforcement (giving food rewards) given to
them to promote responses. Negatives (taking
the food away) when applied, the rats
displayed non compliant behavior.
135
METHODS OF TRAINING
• Orientation/Induction Training
• On –the –job Training
• Off-the -job training.: a. internships, b.
apprenticeship -both mix classroom try and on the
job experience.
• On-the -job-Training
• Simulation –learning under realistic conditions
away from office/work
• Formal Training ---classroom and conferences
training lectures i.e. Seminars, courses, lecture
presentation
136
System Approaches to Training
• Training Needs Assessment (Setting Training
Object)
• Training Needs Analysis /Identification –
organizational needs task analysis/ identification
individual analysis by questionnaires, job
knowledge tools, skills test, attitudes surveys,
replacing result of critical accident , data from
assessment center.
137
MODEL OF TRAINING SYSTEM
Determining Training Needs
↓
Identifying Training Objectives
↓
Developing Criteria (Objectives)
↓
Pre-testing Training
↓
Implementation
↓
Selecting Training Methods
↓
Arranging for Training (programmed)
↓
Contracting for Training
↓
Monitoring Training
138
Evaluation
Comparing Training outcome against criteria
(objective
Organizational Needs Analysis
• Grievance
• Accident rewards
• Observations
• Exit interviews
• Complaints from customers
• Equipment utilization figures
• Training committees observation
• Waste /scrap/ quality control data.
139
•
•
•
•
Training criteria / objectives
Quality of work from training e.g. number of
words per minute typed or number of
applications processed per day.
Quality of after training (e.g. dollar cost of
reward, scrap, loss of errors.)
Timelines of work after training (e. g. schedules
met or budget report turned in on time)
Cost savings as a result of training (e. g.
deviation from budget , sales experiences, or
cost of downtime.)
140
USING JOB PERFORMANCE TO ANALYSE
TRAINING NEEDS.
JOB Analysis
and job
description
Ability and
motivation
Performance
standard
Job
performance
level
Comparison
and
performance
approval
141
Identification of areas of
weakness
Pick training
method/programs specially
aimed at weak areas.
Consider measurement
methods cost, time frame
Conduct training activities.
142
PHYSIOLOGICAL CONTRACTS
• Coercive physiological contracts exist when people
work because they are forced to do so .
• Tied in the job because the salary/fringe benefit
prevents them from moving elsewhere.
• Inability to achieve the same package from
employer and would have to lower their standard
of living. Age can also render them immobile
A remunerative psychological contract—when people
work for the money. Tolerance for job to attain the
life styles provided. (Different from coercive
contract). May bind people in the short term but
later severed if a better deal is available elsewhere.
143
A COLLABORATIVE PHYSICAL CONTRACT
The worker is bound to the organization by a belief that
personal objectives can best be obtained by enabling the
organization to fulfill its objectives. Highly motivated
worker (from the pointing viewed of the employer. The
person ‘s desire to achieve can facilitate the company’s
performance objectives.
Physiological contract
Can change radically by de-layering and down-sizing,
(common features) with middle managers being sacrifices
in pursuit of greater efficiency .Redundancy programmed
affect the values, beliefs and drive of these changes in
order manage in an increasingly volatile situation.
144
LEARNING STYLES
Kolb’s learning cycle provides the following as the
learning styles;
• The activist –most comfortable and learn from
experience
• The reflector –effective in reflecting stage.
• The theorist – able to generalize and draw
conclusions
• Pragmatist –effective in taking action.
Activist – they absorb themselves fully in new
experience and dump in the last end – pen- minded,
enthusiastic, and flexible and thrive on challenge
implication. They act first and considered the
consequences.
145
Reflection - they like to stand back and take it all in.
They take a minor role in discussion that will
assimilate other people‘s ideas ready.
• Thoughtful
• Methodical and caution
• Good listening skills but then minus is unwillingness
to participate
Theorist –they are able t o integrate their observation
into theories or patterns
• Logical
• Rational
• Objective
• Discipline for chaos, discord tendency towards
perfections, intolerance of initiation and subjectivity
146
Pragmatist –likely to apply theories and concept in practice
Patient
Realistic
Task oriented and like to get on with things without always
testing the options
Supervisor’s view about their staff, usually are concerted on
training to improve current job performance. An effect
training analysis take both types of need into account and
procedure training plan which shrikes an acceptable
balance.
b) Corporate needs; this concern with needs of the
company and development designed to meet the
department and whole organizational level. The focus is
on a group staff and their common needs as defined by
147
management. There are three particular aspect of this.
• Improving performances either out of problems of
effectiveness or not, which may require corporate
response? E.g. time management or team building
concern with considering or introducing new core
value such as quality management or customer
services and or orientation.
• Ensuring the effective introduction of new products
or services and or working practices .i.e. the
introduction of a new line in a slip, a new financial
management system or the use of new equipment.
• Another method of viewing corporate individual
distinction is to consider it as the separation of job
centered or needs.
148
Corporate Approach
• Focus on needs of the job no matter the individual
doing it (individual viewed collectively with other
doing the job.
• E.g. if time management programmed should be an
obligation. For all staff in the finance department, no
matter their age, experience actual performance
and wither they have attendant a similar program
with their previous employer. They need of the
company are considered paramount even if some
employees consider it as waste of funds. Implication
of this strategy;-recognizing that all level are part of
management at in the organization.
• It achieves organizational goals and cannot be
sidelined as the concern of only the personnel
department /training section.
149
Both the individual needs identification and
corporate needs identification are the
responsibility of those with the responsibility for
the performance of employees as individuals
and collectively.
Knowledge , skills and behavior
Having identified the training needs the particular
form of activities which will enable them to be
met must be considered. In order to do this it is
important to know the outcomes expected, i .e
.what are the knowledge, skills and behaviors
which need to be developed.
150
• What do employees need to know in order to
perform their jobs well?- criteria ; a) background
information about the organization to be very
detailed (technical) b) knowledge about the
individual work tasks.
• What skills and competences are required and to
what level. Knowledge by itself is not enough to
secure acceptable performance but skills to be used
in the job.
• What behavioral characteristics are needed? –
general attributes of interest, commitment and
enthusiasm are important for all jobs but behavior
needs more attention. E.g to develop a set of
attitude and behavior towards customer service,
technical standards, cost consciousness working
together effectively, work flexibility.
151
PHYSIOLOGICAL CONTRACTS
Definition as the perceived relationship between
the individual and the organization and involves
the previous factors which bind the individual to
the enterprise. The way people feel about the
organization for which they work.
Dynamic concept
Nature of contract will change overtime and
influence by many variables will also affect the
factors which will motivate the individual.
152
Skills development
Skills- ability to do something at a high level of
performance e. g. dancing , operating a machine
or horse riding. It can also mean mental
reasoning skills, interpersonal skills working in
groups. Presenting information and asking
questions. Skills are learned by following a set of
instruction, written or spoken
Two factors necessary to improve performance
essential to develop skills.
a) Practice
b) Feedback
153
Motivation to learn
If we ask how do we learn? We should also ask
why people learn?
Motivation – key factors in the learning process
Conditions to be provided that will lead people to
want to direct their effort toward the objectives
set motivation to learn can take 2 forms
a) Intrinsic - satisfaction of our curiosity over
something that is nuclear or unfinished
b) Achievement of competence
c) A means of knowing how well we are doing
d) Extrinsic where rewards at work surveys on why
people stay on their job.
154
Types of learning
a) Individuals learning –setting tasks with learning targets
or objectives appropriates to the learner’s current ability
and needs.
b) Monitoring progress –meeting to discuss progress made
c) Reviewing and learning from performance reviewing
when tasks have been completed
d) How to avoid problems
Group learning – controlled by a professional teacher
Project Methods – discussions syndicate work-reading,
discussions, interviewing, role-playing and written report
Case history – for the group to be decide
Role playing –given particular role to play
155
TRAINING METHODS
On- the job methods
a) Demonstration
b) Coaching – experienced instructor gives guidance
and feel back to the trainee and provides
encouragement and assistance in overcoming
difficulties
c) Project
d) Job Rotation
e) Attachment /Internship and secondments
f) Mentoring, counseling and guidance
g) Assistance (to more senior person)
h) Committees/ Quality Circle
156
Off the job methods
Open- general training irrespective of organization
. Tailored to suit all organization creativity and
innovation
Closed –course developed to suit specific
organization
Case studies In – tray exercises - letters from
customers , memo from staff, request for
information observed how they work on those
assignments.
157
Management games
• Role playing
• Longer education-based courses –distance
learning , evening classes, part-time
• Conference, seminars and workshops
• Programmed instruction – books / prepared
notes, audio cassettes or discs television
programmes , computers
• Outdoor/ out ward bound programmes
158
QUESTIONS
Now that we understand something of learning styles
and that every one learns differently , we ought to
design training and development programmes for
each individual. But that would cost too much
a) Explain the importance of organization objectives
and of employee objectives in the preparation of a
training or development programmes
b) Outline two distinctively different types of
development which could be used irrespective of
individuals learning styles. Explain your answers.
159
COACHING
Define
Coaching is an ongoing process aimed at helping people
to improve their performance to meet or exceed
organizational personal goals.
Who is a coach?
A coach is a person responsible for helping people to
achieve through a process of discovering each person's
strength and weaknesses and then matching resources,
advice to improve those strength and minimizing those
weaknesses.
What situation needs coaching?
Coaching is needed when an employee's performance
falls below expectation when manager is trying to raise
the employee's performance a level or two.
160
What situations need coaching?
• Not performing to company's goals
• Not performing at potential level
• During setbacks and problems
• When people are new to a job
• Through success and failure
• As identified by coach
161
Examples:
• Struggling with too many projects and ideas
• Needs to correct an employee relations problem and doesn't
know how
• Doesn't have enough support and want a mentor
• Feels like there aren't enough hours in the day get everything
done.
• Needs to begin a project but doesn't have a clue how to get
started.
• Fears you might be let go in next downsizing
• A boss who is driving one crazy
• Will be going through a big transition
• Can't get used to change
• Feels like the lone with no one really talk to
• Can't sleep at night because of ………………………… accident
162
• Has struggled ever since (the divorce, you got fired)
• Can't seem to get motivated to do anything
Coaching Sessions
4 Types of coaching sessions
• Counseling
• Encouraging and Mentoring
• Teaching or Training
• Confrontation
163
The 10 steps of one-to-one coaching
• Initial Fact Finding - Make Sure You've Got it Right
• What was covered in precious session?
• What goals were set? Were they met?
• Have I personally quantified the result? Am I basing
this session on Second- Third- hand information?
• Am I being objective? Am I allowing prejudice
(goods or bad) to influence my coaching?
164
• Do I have a current evaluation of this person?
-Strength
-Weaknesses
-Opportunities
-Threats
• Have I talked with peers and other coaches as a
reality check
• What are the goals for this coaching session?
• What action I like to occur as the result of the
session?
165
2. Setting the Stage
• Praise what they do well
• Briefly describe the opportunity for change/growth
as you see it
• Communicate your expectations for the sessions
3. Dealing with the challenge / Problem
• Listen actively
• Ask questions - the employee is the best one to
define the challenge /problem
• Reflect and paraphrase their perceptions
• Let people vent
-Let them finish before you talk
-Manage your reactions
166
• Offer your perceptions as a guide if they go off track
• Describe their behaviour only - be objective, descriptive
and specific
• Don't be judgmental
4. Getting Agreement on the Facts
• Clarify
• Summarize
5. Searching for Options
Ask questions and listen
Encouragement to come up with solutions
Guide them to other options, if their solutions are not
adequate /practical - ask the right questions, don't just
your solutions
167
6. Prioritizing the Options
• Evaluate the consequences of each one
• Rank in descending order of preferred solutions
7. Developing an Action Plan
• Determine the specific training steps needed to be taken.
• Determine when the training will begin
• Define the activities
8. Defining the Timeliness
9. Recognition
• Let them know you appreciate their contribution to the
organization (appreciation)
168
• Let them be part of decision making (involvement)
10. Follow -Up
• Monitoring
• Evaluate performance against the standards agreed
to in the action plan
• Redirect and reassess
• Begin the coaching cycle again
How to ascertain the success of coaching session
• It is mutual
• It is respectful
• It is solution and opportunity focused
• It is structured / planned
• You maintain control
• You stay on one topic per session
• It results in a positive change in behaviour
169
One of the best ways to get positive change in behaviour and
reach the goal of improving the performance of your
employees is to give continuous, accurate, non-judgmental
feed back
Giving feedback
Make a huge difference in how well you do
• Should feedback always be negative / positive
• As a coach, you can't respond only to problem areas
Feedback characteristics
• It must be timely. The closer to the behaviour that feedback
occurs, the more likely you are to re-enforce, enhance or
redirect that behavior.
• It must be specific- address specific behaviour and actual
performance not the perceived qualities of the other person.
170
PROCESS OF COACHING
Addressing Behaviour
In correcting an employee you address the conduct and not the
person. By addressing the behaviour and not the individual,
you let the person know that they are still valued, even if
they’ve made a mistake or are doing something incorrectly.
Explain what the problem is and why it needs to be changed.
Suggest alternative ways of handling the problematic situation.
Taking the time, the first time will help prevent problems in the
future.
Involving employees
Giving your employees up to date operational information. Failure
to do that would create chaos and stress in work environment
for your workers. Letting them know about the changes ahead
of time will help them feel part of the company and its goals
(part of investment).
171
Complementing Employees.
Applicant employees when they do something praise worthy.
Some Managers wait for mistakes, rather than rewarding
positive performances with praise and support. Such posture
creates tension where workers are constantly apprehensive
about their next mistake. By praising employee's performance
you encourage your workforce to strive for success.
MOTIVATION
Managers often erroneously believe that the key to getting the
most out of their employees is to serve as a policing and
disciplinary force in the office. The reality is however that
focusing on the negative creates a negative work environment
When people are fearful or feel threatened by their productive
and less willing to communicate with employers about 172
conflicts problems and on the job stress
How to motivate your employees
Understanding
• Make sure that employees understand what is
expected of them. Most people want to do well
at their jobs but sometimes are ill informed
about their positions’ responsibilities.
• Make sure you provide job descriptions and
review duties and add new ones if
responsibilities have changed.
Adequate Training
• Make sure employees get adequate training to
perform their jobs. Early training decrease
anxiety and maximizes employees productivity
173
Feed Back
Provide feedback to employees to gauge the success of their
effort. Feedback is thus a positive
reinforcement to employees.
Mentoring
Traditionally mentoring might have been described as the
activities conducted by a person (the mentor) for another
person (the mentee) in order to help that other person to do
a job more effectively and for them to progress in their
career. The mentor was probably someone who had been
there and done that before.
A mentor might use a variety of approaches e.g. Coaching,
Training, Discussion, Counseling etc
Today, there seems to be much ongoing discussion and debate
about definitions and difference regarding coaching and
mentoring. The major difference however is that, Mentors
normally are like Big Brothers and don't get paid for what 174
they do.
CAREER DEVELOPMENT
Career is the sequence of Work-related positions a
person occupies throughout life
Career Development
Any work, paid or unpaid pursued over an
extended period of time, can constitute a career.
Career Development has stages -from exploration
to decline or retirement
175
Organizational Career Development focuses a job
and on constituting career paths that provide for
the logical progression and people between jobs
in an organization. These paths represent
ladders that individuals can climb to advance in
certain organizational units. For e.g., a person
might enter the sales department as a sales
manager, counseling them to account and finally
to vice - president (sales). For organizations
where lifetime employment is unlikely career
development for employees may risk creating
unrealistic expectations about the employees’
future in serious situations. The employees may
leave the organization.
176
Individual career Development - focuses on
individual careers rather than organizational
needs. Individuals' needs and skills are the focus
of the analysis. Such analysis might consider
situations both within and outside the
organization that could expand the person's
career
177
Organisational Career Perspective
Individual Career Perspective
Identify future organisational staffing
needs
Identify personal abilities and interest
Plan career ladders
Plan life and work goals
Assess individual potential and training
needs
Assess alternative paths inside and outside
the
organisation.
Match organisational needs with individual
abilities
Note changes in interests and goals as
career and life stage change
Audit and develop a career system for the
organization.
178
Summary
1. A career is a sequence of positions occupied by
a person during the course of a lifetime
2. Effective organizational career development
• Ensures that needed talent will be available
• Improve the organization's ability to attract and
retain high talent personnel
• Ensures that minorities and women will have
opportunities for growth and development
• Reduce employment frustration
179
3. A career can be viewed as consisting of five stages
• Exploration
• Establishment
• Mid Career
• Late Career
• Decline
4. Effective organizational career development techniques
include:
• Challenging initial jobs
• Dissemination of career option information
• Job posting
• Assessment centres
• Career counseling
• A career development workshops
180
• Continuing education and training
• Period job changes
• Sabbaticals
5. lndividual career development is a three -steps self
assessment process:
• Identifying and organizing skills interest work- related
needed and values
• Converting those into general career fields and specific job
goals
• Testing those possibilities against realities of the
organization or the job market.
• Career opportunities appear to be good for the post-baby
boom group
• Variety of suggestions that one can follow to get ahead
181
monthly seems to be an issue
For more effective organizational career
development
• Challenging initial jobs
• Understanding career options
• Job posting
• Assessment centers
• Career development workshops
• Continuing education and training
• job changes
• Sabbaticals /leaves of absence
182
183
LEARNING
184
LEARNING HOW TO LEARN
• Providing a basis for organizing and planning
learning
• Pinpointing precisely what has been learnt and
what to do better or differently as a
consequence.
• Sharing what has been learnt with other people
for their benefit.
• Checking on the quality of what has been learnt.
• Transferring what has been learnt and applying it
in different circumstances
• Improving the learning process itself so that how
people learn, not just what they learn is given
constant attention.
185
CONDITIONS OF EFFECTIVE LEARNING
• Individual to be motivated to learn – should be
aware that their present level of knowledge, skill
or competence, or their existing attitude or
behavior needs to be developed or improved.
• If learners have learning goals/targets/standards
of performance acceptable and can use to judge
their own progress.
• Need sense of direction and feedback on their
performance (self-motivation).
• Learners to gain satisfaction from learning most
capable of learning if it satisfies one or more of
their needs.
• Learners to be actively involved, as learning is an
active process.
186
• Appropriate process and methods to be used according to
the needs and learning styles of the individual/group.
• Learning needs requirement of time to assimilate, test and
accept.
• The need to receive re-enforcement of correct behavior
should quickly know if they are performing well.
• That there should be different levels of learning and these
need different methods and takes different times.
 Simplest level, learning requires direct physical responses,
memorization and conditioning.
 Higher level – learning involves adapting existence
knowledge or skills to a new task or environment.
 Next level – learning becomes a complex process when
series of isolated tasks have to be integrated.
Most complex when values and attitudes of people and
groups are concerned.
187
CONCEPTS OF E-LEARNING
3 CONCEPTS:
• Connectivity – computer network using CD ROM as a
means of distributing training materials.
• Focus on the learner – individuals/groups taking charge
of their own training.
• Blended learning – lays emphasis on the range of ways
that e-learning can be delivered when combined with
multiple models’ facilitating learning (taking into
account the learners environment, motivation, and
learning styles).
Richer/polished level of learning methods: - does not rely
on one approach. It combines conventional
instructions and self-managed learning (need for
balance between face-to-face and electronic learning)
188
DEVELOPING E-LEARNING PROCESS
Main steps:
Initial analysis
• Definition of human resource development strategy at
organizational level
• Identification of organizational learning needs
• Assessing the strengths and weaknesses of the present
arrangements for developing people.
Scope
• Identifying the overall scope for developing e-learning
systems with particular attention to an assessment of
the added value to be provided, (enhancing present
approach to blended learning).
• Identifying any areas where e-learning might be
appropriate and establish what specific opportunities
technology offers to enhance knowledge.
189
E-LEARNING DEVELOPMENT PROGRAMS
• The learning need
• Meeting of e-learning with that need
• The learning system to be used
• The content of the learning to be delivered.
• The scope of program to cater for individual or
group.
• The blending with other forms of training.
• Who to be responsible within the organisation for
developing and delivering e-learning.
• Consider the availability of resources within the
organisation to develop content.
190
• How the material needs to be tailor-made to fit the
organisation.
• Possibility of suitable materials available elsewhere.
• Comparative cost of each option.
• Identifying possible organisations to supply suitable
material.
Criteria – Understanding of the requirements.
• – Learning methods used (pedagogic principles and
theoretical perspective resulting from the methods)
• – Outcomes from the methods and how measured.
• – Suitability of learning material (fit with requirements)
• – Cost
• – Selection and training of tutors
• – ensure the availability of facilities for e-learning
(computers, learning resource centers)
191
IMPLEMENTATION
• Preparing briefing material
• Awareness of the facilities for e-learning by all trainees
and managers
• Ensuring e-learning arrangements are linked to other
HR initiatives like performance management, career
planning and knowledge management.
• Launching e-learning, starting with a pilot scheme in a
department or a specific area of learning such as IT.
EVALUATION
• Monitoring and evaluating performance and impact of
e-learning.
192
193
INDUSTRIAL RELATIONS
194
INDUSTRIAL RELATIONS
• Conceptual background
• Industrial Relations-What is it?
• Industrial Relations is the relationship between
workers and management, between employees
and owners of productive capital.
195
PARTIES OF INDUSTRIAL RELATIONS:
1. Categories of employees-(Private or Govt.
workers)
-Government
-the Private Sector
-non Governmental organization
2. Categories of employers
-Blue collar workers (clerks, secretaries)
-White collar workers
-Unskilled
-Professionals
196
THEORETICAL PERSPECTIVES
3. Basic theoretical perspectives/approaches
1. Radical perspectives
-Emerged from Marxist philosophy of class struggle
whereby the worker is exploited and breeds
antagonism between worker and
owner/manager, the interest are dramatically
opposed to each other.
How do we address this problem of conflict? By
Grouping of workers- which emerged class struggle
idea ie workers to group and confront
management. No one person capable of taking
up the challenge.
197
2. Unitarian Perspective- Too radical /collective - all
together in the same boat. Workers demand of too
much money that could collapse the business- same
interest goal-too simplistic.
Emerged from productive capital the two theories
above fail to address the exploitative issues.
3. Pluralist Perspective-Different interests/ concerns
are at play thus creating conflict situation in the
workplace.
So we should recognize the difference (govt. being
different from NGO; NGO different from an
Entrepreneur and manager different from solution?
Creating a system for mutual co-existence).
198
1. Categories of employers
-Government
-Private
Non-Governmental
2. Categories of Employees
-Blue Collar workers
-White collar workers
-Unskilled
-Professional
3. Owners of Productive Capital
Emergence of industrial relations
199
-WHY DID IR ARISE?
4 main reasons
1. Exploitation of workers
2. Inadequate of the welfare tradition
3. Quality of working line concerns (OWL)
(People being more and more concerned with
their work to ensure that sporting activities,
leisure, and entertainment is given a room)
4. Complexity of society
200
CHARACTERISTICS OF IR
- Pluralist approach confirmed.
-Laws to ensure that workers get what they want,
and owner gets what he wants. So that there is
no exploitation.
Maximum requirements for both workers and
employer (owner of productive capital)
-Unions and labour organizations
Emergence of workers’ groupings
Union to champion the interest of the worker but
not to confront - industrial democracy.
201
-Employers organizations
This must be available to do the negotiation as Ghana Employers
Association (G. E. A.)
-The bargaining process
Negotiation from different angles or interests Tripartite
Negotiation (Govt. Employers, Workers)
Industrial Relations Framework
Ghana recognizes and operates a pluralist IR framework.
Evidence shown in the Tripartite Arrangement
Tripartite Arrangement/Agreement.
-Labour/workers Union (TUC) Govt. always gets involved as it is a
major player
202
-Employers Association (GEA, AGI, Govt.-Ministry of employment)
Issues-
Wages
Health and Safe Working Hours
Retirement benefits
Leave Provisions
Nature of Employment contract
Negotiations and Collective bargaining
For Union-employer negotiation the following must be
present;
Recognition of the union by acceptable number of
workers as union members (sometimes right of
representation breeds dispute)
Follows the code of practice-a union must not recruit a
member who has already been recruited by another
union.
Collective bargaining takes place where unions are
recognized
203
COLLECTIVE BARGAINING
Collective bargaining agreement.
-This occurs where an employer or group of employers
negotiate the terms and conditions of employment
of their workforce with the representatives of one or
several workers organizations and reaches
agreement on those issues. Thus various aspects of
workers contract of employment are determined not
individually, but collectively.
Outcomes of Bargaining
Substantive agreements- based on pay terms and
conditions of employment.
Procedure agreements-Set out on agreed course of
action for various eventualities, i.e. equal
opportunities, recruitment, redundancy, discipline
etc.
204
8 KEY ARTICLES OF LEGISLATING IR
1. Trade Union Ordinance (1941)
2. Conspiracy and Protection of Property
(Trade Dispute Ordinance (1941)
3. Trade Disputes (Arbitration and Enquiry)
Ordinance 1941
4. Industrial Relations Act, 1965 (Act 299)
5. Labour Decree, 1967 NLCD 157, Labour Law
6. Labour Regulations, 1969 (LI 632)
7. Workman’s Compensation Law 1987(PNDCL
187)
8. Factories, offices and shops Act 1970 326
205
TRADE UNIONISM
Definition
Trade Unions-Organization (Temporary or
permanent) consisting wholly of workers of one
or more descriptions whose principal purpose
includes the regulations between workers of that
description and employers/ employers
“association”.
• Regards as any group of workers who combine
even for a brief period to secure something from
an employer
• Independent of the employer
206
• Involved with the terms and conditions of it’s
members.
• Need to register with the certification officer
to gain legal status recognition.
• Its recognition of independence is the
avoidance of it’s activities free from the
manipulation of the employers
• Its size gradually increased to include
transport and general workers’ Union (TG WU
until 1993) since then its numbers have been
falling due to mergers and general economic
recessions in Economic restructuring in UK.
207
PROCESS OF COLLECTIVE BARGAINING
- Conduct by negotiation ( discussion of matters
with a view of reaching an agreement)
Negotiation can take place in 2 main forms
1. Through distributive bargaining where
negotiation is based on distribution of limited
resources ( one party’s gain is another party’s
loss or win- lose bargaining.)
2. Through integrative bargaining
• Based on joint problem-solving negotiation at
finding mutually acceptable satisfying solution to
problems (WIN-WIN) bargaining, agree to
disagree situation.
208
PROCEDURE
Preparation
- Setting objectives, prioritization.
Basic minimum requirements to be achieved.
Desirable requirements to be achieved by
negotiator.
Optimum requirement for best level of
achievement.
- Research the background to the negotiation
• Including bargaining power of other party
• Preparing the Case to be agreed
209
- Selecting the negotiations- good
communication: persuasive, acceptable to the
other party and authoritative.
Terms of C. B. A.’s are binding on all works for
C.B. to take place, bargaining units need to be
established- such units could be small work
group at a local level right through national
units representing hundreds of thousands of
workers honor the relationship between local
and national bargaining has varied over time.
210
CENTRALISED VRS LOCALIZED BARGARNING
Centralised (National) - Terms and conditions fixed for a
whole sector of the labour market Advantage
reducing local wage competition.
- Power of such a bargaining unit - considerable
- Basic national rate provide stability and guarantee
minimum wage for membership.
Localized
- Units allow varied range of outcome and
greater local flexibility
- More responsive to local needs currently the tendency
has been towards more decentralized bargaining units.
211
COLLECTIVE BARGAINING
Individual organisations may bargain separately with each
organised trade union or arrange single - table
bargaining where the representatives of all the trade
sit down together with management Advantage of
single - table bargaining is integrated negotiation but
difficult in coming to an agreement that satisfies all
parties.
NEGOTIATION
• Exchanging information
• Listening to the other party's position
• Signal likely compromise points
• Propose ways forward
212
CLOSING
• Summaries of positions
• Propose a final offer which meets the needs of both parties
• Reach agreement
TRADE UNION SANCTIONS
• Stikes
• Overtime bans
• Work to rule
• Go slows
• Sit - inns
• Boycotts
• Picketing
EMPLOYER SANCTIONS
• Lockouts
• Lay - offs
• Dismissal
213
COLLECTIVE LABOUR LAW
TRADE UNION IMMUNITIES
• Terms and conditions of employment or the physical
conditions of work
• Engagement, non - engagement, termination or
suspension of employees
• Allocation of work between employee or groups of
employees.
• Discipline
• Membership or non - membership of a trade union
Facilities for trade union officials
• The machinery for negotiation or consultation
including trade union recognition
Disputes between trade union or between one group of
workers and another are not covered by immunity
from prosecution. Sanctions are applied in extreme
situations
214
TECHNIQUES FOR RESOLVING DISPUTES
• Conciliation, where an independent third
party acts as a go between in order to help
achieve a settlement between the two parties
• Mediation, where a third party has a more
active role in proposing recommendations for
both sides to consider.
• Arbitration, where a third party settle the
dispute by making a independent decision for
the parties in dispute.
215
LABOUR LAW REFERENCE TO NEW LABOUR
LAW
1. Individual Labour Law
2. Collective Labour Law
216
INDIVIDUAL LABOUR LAW (AREAS)
•
•
•
•
•
Contract of employment
Equal opportunities
Access to medical records
Dismissal/Redundancy
Time off work - legal right to take reasonable
time off for trade union or public duty activities.
• Maternity benefits
217
•
DISCIPLINARY AND GRIEVANCE
PROCEDURE
218
DISCIPLINE
The term, "discipline" refers to condition in the
organization when employees conduct
themselves in accordance with the rules and
standard of acceptable behaviour. Members'
conforming with what is considered proper
behaviour because they believe it is the right
thing to do.
219
•
•
•
•
•
•
•
TYPES OF DISCIPLINE PROBLEMS
Attendance / Absenteeism - time keeping
Health and Safety
Use of company facilities
Discrimination
Infraction of company rules
Dishonesty
Gross misconduct (the kind of offence
resulting in instant dismissal should be noted.)
220
PROBLEM IN PERSPECTIVE BEFORE DISCIPLINE
ACTION
•
•
•
•
•
Seriousness of the problem
Duration of the problem
Frequency and nature of the problem
Employees' work history
Extenuating factors - e.g. a student who fails to
submit his semester paper by the deadline is
likely to violate and must be treated leniently.
• Degree of socialization - organisation's effort to
educate the employee causing the problem.
• History of organisation's discipline practices
• Implications for other employees
221
REQUIREMENTS OF THE PROCEDURE:
(industrial democracy)
• Be in written form.
• Specify to whom it applies
• Provide for the speedy progress of disciplinary
hearings
• Indicate the various forms of disciplinary action
that may be taken (warning, dismissal etc)
• Ensure that individuals are informed of the
disciplinary charges made against them.
• Permit individuals to state their case
222
• Ensure proper investigations of every case
before disciplinary action is implemented
• Individuals are informed of the reasons for the
action being taken against them.
• No individual is dismissed for a first offence
except in cases of group misconduct
• Provide for a right of appeal
223
MISCONDUCT
a) Breaches, infringements or non observance of any of
the general rules / working rules eg poor attendance,
bad time keeping
b) Failure to obey lawful and reasonable instructions
c) Unreasonable / unacceptable conduct - under alcohol.
d)Threatened violence on a colleague or member of the
public.
GROUP MISCONDUCT
e) Any behaviour that warrants instant dismissal i.e.
stealing, falsifying various claim sheets, allowance
bonus sheets
f) Malicious damage to company property
g) Sexual misconduct in work place, sexual harassment.
224
The interviewer needs good communication and
counseling skills, where action is needed.
Grievance procedures should allow the right
of appeal to higher level of management if the
individual feels that their grievance has not
been dealt with adequately.
225
GRIEVANCE PROCEDURE:
COMPLAINTS / GRIEVANCE HANDLING, DISCIPLINE
AND DISMISSAL CONCEPT:
The needs for mechanisms that help in
regulating the relationship between employer
and employee to avoid breakdown of
relationship.
The basis for the relationship in law is the
contract of employment and the company's
rules covering conduct and behavior in
employment.
226
The normal communication channels should
ensure that any difficulties are resolved
informally between the individual and his
manager. If this does not occur, more formal
procedure may be used. For the employee,
the main source of further action would be
through the grievance procedure, for the
employer through the disciplinary procedure.
227
GRIEVANCE PROCEDURE - Is a system which provides a method for employees to
raise issues or complain with management before they
escalate into major disputes or result in the resignation
of the employee. It is the responsibility of management
to ensure that:
• grievances are heard speedily and impartially and that
action is taken as a result.
stage:
• to raise the issue formally with the line manager and
for an interview to take place which defines the
problem and moves towards an acceptable solution.
Why grievance? - It may be raised about pay or other
terms and conditions of employment, or behaviour
such as harassment or race, sex discrimination.
228
MANAGEMENT RANKING
• management to rank the necessity and
equality of the action taken and feel that his
superior supports his decision. Culprits can
also challenge the decision of management.
229
GUIDELINES IN ADMINISTRATERING DISCIPLINE
Discipline should be
• Corrective
• Progressive ( only for the most serious
violations will an employee be dismissed after
a first offence. Progressive action starts with
an oral warning and soon
• Follow the "Hot stove" rule - implementing
discipline can be equated with touching a hot
stove. It gives you an instant result (pain) The
burn is instantaneous leaving no question of
cause and effect, if touched.
230
• Ample warning
• Action consistent
• Result - impersonal no matter who you
are(keep - discipline impersonal)
231
REPRIMAND PROCESS
1. Tell employees beforehand that you are going
to let them know how they are doing and in
no uncertain terms.
1st half of PEPRIMAND:
2. Reprimand people immediately
3. Tell them what they did wrong - be specific
4. Tell them how you feel about what they did
wrong.
5. Stop for few seconds of uncomfortable silence
to let them feel how you feel.
232
SECOND HALF REPRIMAND:
6)Shake hands or touch them in a way that lets
them know you are honestly on their side.
7) Remind them how much you value them
8) Reaffirm that you think well of them but not
of their performance in this situation
9) Realise that when the remand is over it's
over.
233
PROCESS OF DISCIPLINARY ACTION
• Oral warning (private and informal
environment first talk of the rule broken)
• If explanation is acceptable further
disciplinary action is avoided. If not the
process continues
• Written warning (first formal stage and put on
file) after discussion warning letter.
234
1ST AND 2ND FINAL WARNING
•
•
•
•
Suspension(with pay without pay)
Demotion
Pay cut
Dismissal
235
DISMISSAL
Reasons • Capability or qualification
• Conduct
• Redundancy
• Statutory reason - performing job will lead to
breaking the rules
• Any other substantial reason - banned driver working against interest of company.
236
237
PERFORMANCE MANAGEMENT
238
EMPLOYEE PERFORMANCE
MANAGEMENT
In the quest for the implementation of certain
breakthrough interventions such as quality
customer service, total quality management,
productivity improvement and many others,
the attendant fanfare over indexes and
slogans sometimes diverts attention from one
really essential elements of such breakthrough
initiatives, that's people's performance. It is
always people who make plans work or fail
through their performance. It is therefore
imperative to first work, among others,
239
In this presentation, I would want to focus on:• The nature of performance Management
• The most essential and useful tool in an
organization
• The practical ways of implementing this tool in
an organization
• The nurturing of a performance based culture
in an organization.
• Problems of performance appraisals in
Ghanaian organizations.
240
THE NATURE OF PERFORMANCE
MANAGEMENT
Effective employee performance management
begins with a clear statement of
organizational objectives. Everyone should be
singing from the same sheet music and
committed to the song. Without that,
employee performance management can be
isolated, irrational and irrelevant.
The responsibilities of each work group and of
each individual fit within and optimally
support the organization's goals.
Performance in all activities is measured and
241
Again, employees need to be provided with an
honest and objective evaluation of their
performance.
Besides, areas where improvements are needed
are communicated to employees and then reassessed to make those improvements.
Furthermore, there is always the need to
indentify potential for further growth and
development.
242
All rewards are based on employee
performance.
Organizational structure, processes, resources
and authority systems are designed to
optimize the performance of all employees.
There is an ongoing effort to create and guide
appropriate initiatives for achieving
organizational goals and for seeing newer and
more appropriate goals.
243
A TOOL FOR MANAGING EMPLOYEE
PERFORMANCE
No other management tools are more critical to
employee performance management than a
goal or job objective and reward-based
performance planning and appraised system.
The system comprises of distinct activities:a) Performance planning
b) Performance monitoring
c) Performance evaluation
d) Reward system tied directly to performance.
244
a) PERFORMANCE PLANNING
Performance planning embodies the process of
setting and agreeing on job objectives which
each officer is personally accountable for
achieving. It is a powerful and direct way of
developing a clear understanding between
appraiser and appraisee about:*The key outputs of the job and how it fits into
the key result areas of the business
* Building commitment to the achievement of
the objective set
* Identify performance competencies for the
achievement of the objectives set.
245
(b)
PERFORMANCE MONITORING
This is an ongoing evaluation of the Appraiser's
job performance on a regular basis. This may
take several forms-free discussions based on
the appraiser's observation or it could be a
more structured periodic review based on
established criteria. Whatever the form, the
main objective is to encourage open and
honest 2-way communication about the
appraiser's activities, tasks and conducts, and
to provide timely guidance and support when
required.
246
PERFORMANCE MANAGEMENT AT DIFFERENT
LEVELS
• Performance of the entire human resources system
and the interrelationship between specific systems
and sub systems. E.g. how effective is an
organization's human resources strategy and its
contribution to achieve general corporate strategic
objective. How will these strategies influence
employee effectiveness in the organization as a
whole?
• Performance of specific human resource subsystems:
Focus on strengths and weaknesses of staff
developed or recruitment and selection policy and
practice and how effective their procedures as well
as their implications of the strategy for training and
development for new and existing employees.
247
• Performance of specific departments:
Comparing and contrasting the performance
of specific department will reveal the
weakness and strengths in the management
of employee performance. It will also indicate
how effectively/ineffectively employee
performance is being addressed by line
managers through the general criteria.
• Team performance: Specific teams with short/
long term responsibility should be evaluated
and rewarded according to their team
performance.
• Individual performance: Performance of
248
(c)PERFORMANCE EVALUATION
This process is a formal written review of
performance and must take place at least
once a year with objectives and performance
being reviewed on quarterly basis as well.
Very often, it is necessary for objectives to be
reviewed or revisited based on business
priorities or extenuating marked circumstance
beyond the appraiser's control. The quarterly
review addresses this need. Any changes
made to objectives set earlier must be
documented in the performance planning
form.
249
Each job should have an ideal performance level
that an employee can reasonably achieve.
Supervisors and subordinates should agree on
job-specific tasks and work related traits or
skills. That way an employee is measured with
respect to mutually agreed-upon goals for his
or her job.
Supervisors shouldn't make over all evaluations.
Evaluations should be built from pertinent
specific criteria that can be judged and
explained. They shouldn't be based on nonspecific subjective, indefensible feelings.
Discuss achievement levels with appraise and
250
Where the overall rating at the end of the
evaluation period falls below average there
should be sufficient evidence of the appraisee
having been regularly informed through
written communication as regards quality of
his performance. This would ensure that the
appraisee would have had the opportunity to
be made aware of his/her short comings with
a view to addressing them.
251
TYING REWARD TO PERFORMANCE
At the heart of the system is the idea that salary
increases should be based on performance
appraisals.
Many organizations separate the two, hoping
that a performance review itself will motivate
an employee. But if organizations aren't
paying for performance, what are they paying
for? The real reason they separate pay from
performance is that their systems can't
successfully connect the two.
252
Combine cost-of-Iiving allowance and merit
increases. The usual purpose of COLA increases
is to hold into good employees. However,
separating the two can further distance pay from
performance and render each of the two raises
insignificant.
A performance appraisal shouldn't end with a
supervisor suggesting a specific raise. Such an
evaluation usually begins with a figure and is
manipulated to justify it. Discussions tend to be
more about the increase than the performance.
If an organization uses a performance/ raise index,
employees can judge their raises by seeing
where their performance ratings place them. If
253
MEANS OF SUCCESSFUL IMPLEMENTATION OF
OBJECTIVE APPRAISAL SYSTEM
a) CREATE AN ENVIRONMENT OF SUCCESS
The system should assume that most employees will
receive good ratings. If it can't then management
have big problems. If the assumption is "good job"
and the appraisal question is "how good?" the
process is less likely to be seen as an annual
criticism.
Organizations should make it clear that deliberate
improvement is valued. They should expect
supervisors to help subordinates reach their highest
possible levels of productivity. A performance
appraisal should serve to promote selfimprovement.
254
b) THE SUPERVISOR'S ROLE
It's crucial to recognize the role of the supervisor
in performance appraisals. If a supervisor has
had nothing to do with the performance of a
subordinate for some time, that supervisor
probably shouldn't be doing the evaluation.
Supervisors should evaluate employees as
members of a team. They should assess how
they can improve. It's important to identify
the contributions an employee has made to
the team, the adjustments needed to support
improvement, and what supervisors need to
do differently to help.
255
c) NO SURPRISES
A formal evaluation shouldn't contain surprises.
It shouldn't bring up problems out of the blue.
Evaluations are merely specific points in an
ongoing process. No single performance review
can bear the burden of a year's worth of poor
supervision.
There should be a specific remedy plan for
improvement. A nonspecific plan has very little
chance of being achieved. A plan that's based on
an employee's conscious and deliberate
256
d) MARKETING THE SYSTEM
Get input from supervisors and subordinates
alike. If they are allowed to contribute; they
will be more likely to accept the system and it
is more likely to do what it is supposed to.
Involve Unions: An organization in Accra, for
example found itself with a union contract
containing a pay-for-performance provision
but no system to implement it. Union leaders
are usually sympathetic to a fair and
257
e) KEEP IT SIMPLE
Four pages of instructions are enough. Spend
money to train supervisors in doing evaluations,
not to print bulky manuals. Training makes not
only better performances appraisers but better
supervisors and managers as well.
f) TEST THE SYSTEM
Large firms have the advantage of good marketers.
They can test ideas on small parts of the
population before they put their money and
pride on the line. The appraisal system could be
258
A PERFORMANCE-BASED CULTURE
Value performance leadership. When assessing
the performance of supervisors, cover the
following area:• Quality and quantity of work
• Leadership and management
• Turnover, absenteeism, and safety
• Group attitude and morale
• Performance evaluations.
Value all employees. Authoritarian mangers may
get some short-term results, but no
performance appraisal system can be
259
Promotions in an organization should be based
on superior or consistent outstanding
performance and not on politics or
relationships. Performance should be the
major reason for giving any award, reward or
incentives rather than following traditional
practices of long service, attendance etc.
260
PROBLEMS OF PERFORMANCE IN GHANAIAN
ORGANIZATIONS.
Unfortunately most organizations in Ghana often
fail to accomplish the goals that an effective
performance appraisal should be achieved.
That's to establish what employees are
supposed to do, staff needed to do it and to
assess how well they do it. Too frequently,
employees don't know what's expected of them,
their performance is ineffectively evaluated by
employers. At a food processing plant, managers
claim that they can't evaluate employee
performance. So, they give raises based on
261
The following quotes from employees illustrate
the most common problems found in
performance appraisal systems in Ghanaian
organizations :
Supervisors or managers don't know what I
do. They have no basis on which to evaluate
me .
If there was a problem, why wasn't I told
earlier?
The appraisal instrument used doesn't fit my
job
The rating aren't applicable, clear or objective
262
CONCLUSION
Realistically, those concerns may never be
totally eliminated in large complex
organizations. But they can be minimized with
better performance management. If the
saying “what gets rewarded gets done" is true,
organizations should establish effective
systems to guide supervisors/managers in
tying reward to performance. That way,
management of performance in our
organizations will be very effective and
fruitful.
263
APPRAISAL
Why appraise? - Where are we now?
Do's and don'ts of the appraisal interview
264
BENEFITS OF APPRAISAL
TO THE INDIVIDUAL
Feedback on performance
Involvement in organizing his / her work
Training / career development
TO THE MANAGER
You will gain from knowing your staff better
 Feedback on work problems
An objective way of reviewing performance
future work can be planned
265
To business plans
WHAT APPRAISAL IS NOT
 A 'tell' situation by the manager to the
employee
 A secret report on the employee who never
sees the document
 Another name for a discipline interview
 An attack on the job-holder's personality
 Or a character assassination
 A salary discussion
266
PREPARATION LIST (1)
1. Fix mutually convenient time
2. Don't fill the diary for the whole day with
appraisal interviews
3. Describe to the interviewee, in advance, the
format and procedure to help his thoughts
and questions:
4. Ask the job-holder to prepare his thoughts
and questions.
5. Read and review:
a) Job description
b) Standards of performance and priorities
267
PREPARATION LIST (2)
6. Review in advance targets and special project
7. Consult peers whose departments interface
with the work of the interviewee.
8. Prepare the interview room
9. Ensure no interruptions
10. Make sure any aggravation from a previous
meeting is out of your system before starting
the interview.
268
GETTING THE DISCUSSION GOING (2)
Typical types of questions:
• How have you found dealing with T&D has
worked out?
• What have been the most difficult problems that
you have faced?
• Where do you see your future in the company?
• How do you see this job developing?
• What would you say are the priorities for the
next twelve months?
• Get the employee to discuss and assess his/ her
performance before you state your views.
269
APPRAISAL PREPARATION FORM (1)
FOR THE JOB-HOLDER
PURPOSE
To help the job-holder to prepare for the Appraisal
so that the discussion can be as meaningful as
possible.
APPRAISAL PREPATION FORM (2)
1. What particular parts of the job interest you
the most?
2. What particular parts interest you least?
3. How do you feel you have carried out the main
270
APPRAISAL PREPARATION FORM (3)
5. What, if any, were the reasons preventing you
from being more effective in these areas?
6. What tasks do you feel you have performed
particularly well and why?
7. What areas, if any, are unclear in the job?
APPRAISAL PREPARATION FORM (4)
8. What aspects of work would you most like to
target on next year?
9. What extra help or guidance do you feel you
need to do the present job more effectively?
271
Report of the interview
Essential for future reference
Essential for central reference
• Analysis of training needs
• Manpower planning
• Career planning etc.
If you prefer not to use the proforma, cover the
following areas
• Current/past performance
• Future objectives
• Training needs (short and long term) Career
272
APPRAISAL
CASE STUDIES
Here are some situations about ways employees
responded to their appraisal. How would you
react?
Situation 1.
The employee agrees with appraisal and wants to
improve. Some genuine differences of opinion
are expressed but the employee makes positive
efforts to clarify the issues rather than be
defensive.
Thank the employee for active participation - this
273
Situation 2.
The employee does not accept responsibility for
his substandard performance and blames
corporation procedures and other employees.
Listen with open mind without interrupting or
arguing. Try to find out why employee is being
blamed elsewhere. There must be agreement
towards corrective actions that can be
achieved with his co-operation. Complement
him on this achievement. Follow up closely
and set another review soon to measure
changes and view point.
274
Situation 3.
The employee disagrees with elements of your
appraisal and offers specific information to
refute your findings. Listen carefully- indicate
willingness to reexamine yours. If employee is
right modify your position. If employee's duty is
invalid or irrelevant note your ground and
explain your position.
275
Situation 4.
Employee accepts appraisal without comment and
prepares to leave before you have discussed the
next performance plan.
Some employees are intimidated . Effort is
necessary to open up discussion. Some feel that
there should be agreement in areas of
discussing their faults. Encourage them by
asking questions, ask and suggest activities
which would help them. Ask them to give
summaries of their new performance plan.
276
IDENTIFYING
AND place
STANDARDS
In the following
list ofGOALS
statements,
a G if it is a
goal and an 5 in the box if is a standard according to
the definitions you have heard. If the statement is
neither a goal nor a standard, leave the ___ blank.
___ 1. Breakage in the kitchen should be kept to a
minimum.
___2. to eliminate maintenance coding errors for
existing computer programs by 1 October, at a
cost not to exceed 40 working hours.
___3. Reduce the cost of ongoing operations by 1st
January
___4. Telephone are to be answered quickly and
277
___6. To increase sales of man's watches by 10 per
cent before June, with no increase in costs.
___7. Appreciably reduce time lost because of
accidents by year end.
___8. Errors in recording class enrolment will not
exceed 2% of the total monthly enrolment.
___9. Telephones should be answered after no
more than two rings. Telephone manners are
expected to follow those prescribed in the
company handbook. Messages should include
date, time of call, relevant names and numbers,
and nature of the call.
278
IMPROVING EMPLOYEE PERFORMANCE
1. The importance of the manager in the training
process
1.1 Managers at all levels must supervise people. Done
correctly, everyone benefits and the manager will
receive credit for a job well done. However, if people
are not managed effectively, no one will benefit and the
manager will quickly get the blame.
The task of directing people at work is not easy because
human beings are very complex. However much they
may want to do well, employees performance will not
excel until they know WHAT they are supposed to do
and HOW they are supposed to do it. A well-developed
training programmed addresses these issues.
279
1.2 As Manager supervises employees, they must:
Develop staff
lead
staff
• Induction
- Motivate
• Training
- Appraise
• Professional Development
- Discipline
Problem
solving
Resolve
conflicts
Delegate
280
2.
Employees Benefit From Training
2.1
It is the manager’s job to demonstrate how training
will help employees, trainees who understand the
benefits they can receive from training will want to learn
(have the proper attitude)
2.2
Managers have to think about their employees
In terms of perceived attitude and level of job knowledge:-
281
Employee
attitude
Good
1
2
3
4
Poor
Low
Job
Knowledge
High
282
• The possibilities above show us:• Box 1:
an employee with a good attitude and
low level of job knowledge can be helped
dramatically by training.
• Box 2: in this situation training will help provided
there is adequate time etc.
• Box3: In this situation personnel action (transfer)
may be most appropriate.
• Box 4: This employee could do the job with the
proper attitude but without it, training will not
reduce the problem. Counseling and appraisal
are probably the answer.
283
3. The four basic steps of training
Whatever the training objectives, there are four
basic steps involved:Step 1: Define how the job should be done.
If there is a full job description, it will provide the
manager with information about the job, broken
down into its specific task elements. Form this
list the trainer can readily observe how the tasks
should be performed and their required quality
level.
284
ADVANTAGES AND DISADVANTAGES OF
APPRAISAL
ADVANTAGES
• Boss and subordinate have a formal
opportunity for a candid exchange of views,
provided that the relationship between them
and the nature of this appraisal scheme
encourages them.
• Good performance appraisal systems
encourage line mangers to think
systematically about career and management
development for their subordinates.
285
DISADVANTAGES
• The relationship between boss and subordinate
is frequently fragile. Manager's words, written
or verbal, on what he really feels about the
subordinate can be harmful.
• Even after training, some mangers have
difficulty with appraisal interviews.
• Many appraisal systems involve too much paper
work. This hinders rather than helps.
286
1.
2.
3.
4.
5.
PREPARATION PROCESS OF APPRAISAL
Get top management support
Clarify management's objectives for
performance appraisal
Give oral introductory presentations to
mangers, trade union representatives and
employees and prepare explanatory notes.
Train appraisers
Make sure that the scheme is effectively
implemented -Ensure that promises made in
appraisal interviews, for example for further
training are carried out
287
288
MANAGEMENT BY OBJECTIVES
289
MANAGEMENT BY OBJECTIVES
Multifunctional techniques
Components
• Definitions – Performance Management systems are
attempts to monitor, measure, report, improve and
reward employee performance.
• Key elements
• Objective setting
• Formation of objectives
• Scope of objectives
• How objectives change
290
•
•
•
•
•
•
•
•
Using objectives
MBO process
MBO cycle
Problems
Responsibilities (facilitator)
Coaching
Counseling
Mentoring
291
Definitions:
J.W. Humble: - defines MBO: “as a dynamic
system which seeks to integrate the
company’s need to classify and achieve its
profit and growth goals with the manager’s
need to contribute and develop himself”
George Odiome – MBO defined as “the superior
and the subordinate managers of an
organisation jointly define its common goals,
define each individual’s major areas of
responsibility in terms of the results expected
of him and use these measures as guides for
292
Koontz et al – define MBO “as a comprehensive
managerial system that integrates many key
managerial activities in a systematic manner,
consciously directed towards the effective and efficient
achievement of organizational and individual
objectives”
293
KEY ELEMENTS OF MBO
• Planning (throughout the organisation)
• Leadership and direction (contact between
superiors & subordinates in setting objectives) by
Odiome
• Communication (between senior and junior
managers)
• Control (setting standards, results monitoring and
feedback to be developed)
• Motivation ( Druker’s link between MBO and
motivation by stressing the self control, selfdirecting and self-motivation aspect of MBO)
294
SETTING OBJECTIVES – should be achievable
and measurable
Types : Time specific (Timetable to achieve
objectives)
• Benefit –specific ( Benefits to be derived for
organisation)
• Description –specific ( To describe clearly
objectives)
FORMATION OF OBJECTIVES
• Objectives are formed under three angles
• Management team
• Subordinates – put constraints
295
SCOPE OF OBJECTIVES
•
•
•
•
•
•
•
•
Market standing
Innovation
Productivity
Physical and financial resources
Profitability
Manager performance and development
Worker performance and development
Public responsibility
296
CHANGING OBJECTIVES – deliberately or by
circumstances, permanent/temporary
Reasons
• Senior Executives’ aspirations change due to
past performance of organisation or as
compared to its competitors
• External pressure like the Union or from new
members of staff
• Due to priority of objectives from time to time
• When objectives are achieved, they need to
change
• Environmental changes affect objectives
297
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
MBO CYCLE
Training & Development
Promotion
Corporate Plan
Strategic Objectives
Managers Potential Review
Improvement Plan
Operating Plan
Strategic Objective
Performance Review
Key Result Areas
Managers Objectives
298
ADVANTAGES
• Individual objectives are integrated with
organizational objectives – all agree they are
moving in the same direction.
• Suggestions for improvement come from
those who see the problems: sections,
department and not from Top Management.
• MBO ensures that all managers know how
well or badly they are performing.
• MBO can identify training needs of managers
• MBO focuses on planning for results and not
work is to be done. – Use results as the arbiter
of the effectiveness as put by Koontz. If results
299
PROBLEMS OF MBO
• Without proper understanding (process and
ideas) it turns out to be checking on people
• If objectives are not clear, realistic and
concise, with vague targets, it becomes
useless.
• Objectives without regular review, MBO
becomes expensive
• In trying to set measurable targets, the
reputation of the organisation suffers due to
some immeasurable objectives.
• Some managers pay lip service to MBO but in
reality, do not operate well.
300
•
•
•
•
•
•
•
USING OBJECTIVES – CRITERIA
Clear, concise and understandable
Set with subordinate to gain commitment
Achievable but challenging to provide
motivation
Non – conflicting
As quantifiable as possible for control
purposes
Not too numerous to avoid confusion
Allotted to individual – each employee to have
his/her own set of objectives
301
MBO PROCESS
• Overall objectives and targets – clear definition of the job by
subordinates and superiors – identifying key areas.
• Key result analysis – noting key tasks in the job to be achieved
by a manager
Key task
•
objective
Performance
standard
measure
Personal
Improvement
plan
action
Control feed
back
Improvement
suggestions
Target date – Comment
date achieved
302
TASK INVOLVED TO BE EXPLAINED
• Know your responsibility and what you are
supposed to do.
• Performance standard to be explained.
• Job, critical task, standard
• Performance plan is sold through checking of
the company’s previous performance standard
60 – 80%
• Setting performance standard.
Describe the characteristics of performance
management
• Performance must be clear and specific
303
PERFORMANCE SUPPORT
Performance support – is the process of
encouraging, supporting, motivating an
employee in order that he/she may improve the
performance. It is a nurturing process through
the following means:
• Provision of necessary resources e.g. money,
transportation
• Continuous feedback performance through the
standard means
• Regular meeting and discussion – ie to discuss
employees challenges and needs
• Encourage innovative thinking and creativity
304
• Creating training and development
opportunities – delegation
• Taking major decision regarding the company
• Helping employees to face challenges in the
future
PERFORMANCE REVIEW
• Performance review is the system of going
over employees strengths and weaknesses on
regular basis. Performance review should only
be done concerning employees performance
on the job. Review should be done in relation
to matters that are concerned with the job of
305
GUIDELINES FOR PERFORMANCE REVIEW
• Do not be bias towards employees or
discriminate
• Do not be too lenient
• Do not be too strict
• Do not indulge in workplace politics (where
there are too many managers)
• Performance discussion
• Avoid stereotyping (too much tradition), adapt
to change
306
PERFORMANCE DISCUSSION
This is where the superior or the boss calls the
attention of the subordinates to discuss a
particular topic or to reference point that
relate to the employees strength or weakness
as far as his or her performance is concerned.
Employees are allowed to make their opinions
known in matters relating to their
performance.
307
308
HUMAN RESOURCE PLANNING
309
HUMAN RESOURCE PLANNING
DEFINITION Human Resource Planning is the process by which an
organization ensures that it has the right numbers and
kinds of people, at the right place, and at the right
time, capable of effectively and efficiently completing
those tasks that will help the organization achieve its
overall objectives.
Human Resource Planning thus translates the
organization’s objectives and plans into the number of
workers needed to meet those objectives. Without
clear-cut planning, estimation of an organization's
human resource need is reduced to mere guesswork.
310
SIMPLY PUT - Human Resource Planning is a strategy for
the acquisition, utilization, improvement and
retention of an enterprise" (Department of
employment, 1974).
Human Resource Planning means, any rational and
planned approach for ensuring:
1. The recruitment of sufficient and suitable staff.
2. Their retention in the organization
3. The optimum utilization of staff
4. The improvement of staff performance
5. The disengagement of staff as and when necessary
311
HUMAN RESOURCE PLANNING COMPONENTS
• Human Resource planning process
• Corporate objective
• Assessing the demand for labour
• Estimating personnel requirements
• Assessing the supply of labour
• Labour turnover
• Eternal lablour market
THE PROCESS
Four categories of staff important in Human
Resource Planning as follows:
• Existing staff
• New recruits
312
Existing Staff - Performance appraisal
Productivity
Deployment
Equal opportunities
Training
Remuneration
Promotion/career
development
New recruits
Recruitment methods
Selection procedures
Induction
313
Potential staff- Recruitment methods
Public relations
Wage/salary levels
Employees
Leavers Dismissals for poor
performance
Retirements
Redundancy procedures
Labour turnover
314
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
THE PLANNING PROCESS – ILLUSTRATION
Promotion Succession Plans
Tanning Plans
Recruitment Plans
Personnel Estimates
Potential
Labour Market
Market Demand
Demand for Personnel
Assess Personnel Supply
Corporate Objectives
Pay/Productivity Proposal
Retirement Redundancy Programmes
Periodic Reviews
Existing
The Human Resource Planning Process
315
Existing Staff
Numbers
Categories
Skills
Performance
Flexibility (how easy to transfer)
Promotability
Potential Staff
Location
Categories (engineers, process workers etc)
Skills
Trainability
Attitudes
Competition
316
Less Leavers:
Retirement
Redundancies
Dismissals
Profiles
317
LABOUR TURNOVER INDEX
It provides information about the ratio of
leavers to the average numbers employed
during the course of a year.
NUMBER OF EMPLOYEES LEAVING DURING A
YEAR x100
Average number employed during a year
Turnover of 25% Turnover of 100% -
Satisfactory
major problem
318
Though useful, the labour turn over has disadvantages
1. Does not indicate in which areas of the organization
the rate of leavers is high.
2. Does not identify the length of service of the leavers
3. Does not indicate any sudden changes in the
numbers employed from one year to the next.
319
LABOUR STABILITY INDEX - links the leaving rate with
length of service.
Number of leavers with more than one year service x
100
Number employed a year ago
This is to identify the extent to which new recruits
leave rather than longer–serving employees.
320
LEAVERS BY LENGTH OF SERVICE
Period - 1 January to 31 December
Employee less than
6 – 12
1–2
3–5
6 – 10
over 10
Category
6 months
months
yrs
yrs
yrs
yrs
_________________________________________________________________
Unskilled
Skilled
Clerical
Supervision
Management
321
ADVANTAGES OF STAFF TURN OVER
• Provides incentives to recruit fresh staff
• Enables organizations to shed staff more easily
when redundancies are planned (through
natural wastage)
• Opens up promotion channels for longer
serving employees.
• Introduces element of "self - selection" among
new employees which may save dismissals at
later date
322
DISADVANTAGES
• Additional costs of replacement and
recruitment
• Disputes on production of goods/services
• Additional training costs
• Wasted investment in people
• May lead to difficulties in attracting new staff.
323
THE EXTERNAL LABOUR MARKET
Factors Affecting Nature of External Labour Market
Importance/ Benefits Of Human Resource
Planning (Process To Acquisition, Use And
Deployment)
• Appropriately skilled and flexible workforce
• Ability to respond to change
• Stability in the core of the workforce
• Reduced need to recruit externally
• Improved morale and employee relations
(motivation)
• Improvement in quality of products/services
• Higher productivity
324
RESOURCING STRATEGY
- Business plan - How many people likely to be
required in the key operation functional areas in
the short and long plan
- Skills needed in the future
- Ability to meet the needs from existing resources
if not, where do you find them (required)
- How to develop or expand skills base
- How to identify people with potential and
developing their abilities
- Any problem in attracting or retaining key staff
- The need to increase employment flexibility
- What about downsizing - if any danger, how to
solve it.
325
COMPONENTS OF RESOURCING PLAN
• Resourcing Plan - planning to find people from
within and providing training programme for
them (first, before turning outside the
organization :or suitable resources
• Flexibility Plan- Planning for increased
flexibility in the use of human resources to
enable the organization to make the best use
of people and adapt quality to changing
situations.
• Retention - Preparing plans for retaining the
people the organization needs
326
FACTORS AFFECTING HUMAN RESOURCE PLANNING
INTERNAL
- Business Strategic Plan
- Demand/Supply Forecasting
- Labour Turnover Analysis
- Resourcing Strategy
EXTERNAL
- Scenario Planning
- Work Environment
-Operational Effectiveness
327
- Business Strategic Plan (Internal)
- Defining future activity levels and
-Initiatives and demanding new skills
Scenario Planning
Assessing in broad terms towards the direction
of the organization
328
Demand/Supply Forecasting (External)
Estimating the future demand for people
(Numbers and skills) and assessing the
number of people likely to be available
from within and outside the organization
Work Environment Analysis
- Analyzing the environment in which people work
in terms of this scope it provides for them to use
and develop their skills and achieve job satisfaction.
329
- Labour Turnover Analysis (Internal)
- Analyzing actual Labour turnover figures trends
as an input
- Resourcing Strategy ( Internal & External)
- Planning to achieve competitive advantages
by developing Intellectual capital- employing
more capable people than trials Ensuring that
they develop organizing specific skills and
knowledge and talking steps to become
employer of choice
330