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Session 1: Human Resource management

Barbara Gatumuta HR Consultant

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

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

Human Resource Management is defined as a
strategic and coherent approach to the management
of an organizations most valued asset the people
working there who individually and collectively
contribute to the achievement of the organizations

The purpose of HRM is to improve the productive
contribution of people to the organization in an
ethical and socially responsible way

The purpose of HRM is to improve the productive
contribution of people to the organization in an
ethical and socially responsible way.
HRM describes what the Human Resource function
does and what it should do.
HR Managers administer the contract of
employment which is the legal basis of the
employment relationship within that framework.
Managing resourceful humans requires a constant
balancing between meeting human aspirations of
people and meeting the strategic and financial
needs of the business.
The Strategic Nature HRM must be
forward-thinking, support the business strategy,
and assist the organization in maintaining
competitive advantage.
concerned with the total cost of its function and for
determining value added to the organization.
Strategic Environment
Governmental Legislation
Labor Unions
Management Thought
HRM Strategic Environment includes:
Work force diversity
Changing skill requirements
Continuous improvement
Work process engineering
Decentralized work sites
Employee involvement

Governmental Legislation
Laws supporting employer and employee actions
Labor Unions
Act on behalf of their members by negotiating
contracts with management
Exist to assist workers
Constrain managers
Affect non unionized workforce
Four basic
Training and
implies employee relations to align the interest of employees, the
management and the union.
Industrial relations
Ensures a continuation of an able and willing workforce.
Health and safety
Returning personnel to the society when they are no longer
required by the organization through retirement, redundancy,
discharge or any other form of termination.
Employment and personnel administration
Ensures the organization meets the legal requirements within
which personnel policies, practices and procedures operates.

Human resource planning is a process by which
an organization ensures that
it has the right number and kinds of people
at the right place
at the right time
capable of effectively and efficiently completing
those tasks that will help the organization
achieve its overall strategic objectives.

Recruitment is the process of finding and engaging the
people to fulfil organizations needs.

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

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

Therefore, the quality of people in an organization
determines its success hence the significance of
This process cannot be complete until it attracts
qualified job applicants.

The organization first decides what types of employees
are needed, how many are needed and how many in
each section, unit or department.

The recruitment process is followed immediately by the
selection process.

Approaches in recruitment process include the internal
recruitment and the external recruitment.

Recruitment methods include:
Third party
Selection process involves:
Preliminary screening interview
Completion of application forms
Comprehensive interview
Background investigation
Final decision to hire
Types of selection tests include:
aptitude or potential ability, achievement/proficiency
tests, personality tests
Internal recruitment refers to identification of workers within the
organization to fill vacant positions.
1. Boosting employee morale: existing employees interpret this as recognition of
good performance as this is usually a promotion leading to salary increase. It
makes them work harder towards achieving the organizations objectives as they
feel trusted and appreciated.
2. Less costly: Recruiting from within the organization is less costly as there are no
charges related to advertisements and other steps within the recruitment
3. Improves profitability: the savings made from recruiting from within is ploughed
back into the organizations profits.

1. Risk of stagnancy of ideas: Continual internal recruitment can lead to inbreeding
of same ideas. Old people with their old ideas continue to carry on duties in the
same old fashion. This monotony can create boredom.
2. Risk of weaknesses flourishing: There is danger of perpetuating weaknesses that
already exist in the organization. New recruits bring along new skills and
knowledge which at times end up stimulating profitability.
External recruitment refers to identification of workers outside the
organization to fill vacant positions.

1. New skills and knowledge: the organization usually obtains a
variety of skilled and experienced workers. New recruits can
impact those they find with fresh ideas as they assist each other
2. Impact of more liveliness: social and behavioural diversities
brought along by new recruits sometimes can impact liveliness
in the employees as they get to know each other.
1. Costly: The recruitment process most times picks many
applicants who have to be interviewed. After short-listing, few
applicants are absorbed. The cost of incurred in carrying out
the interview process is usually high.
2. Time consuming: Majority of applicants will not make it into the
firm as employees. However, time has to be spent to seed the
right one. The time could have been used doing something

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

The Employment Act 2007 and government
requirements outlined by the Revenue Authority
describes the payment rates for certain categories
of employees as well as taxation rates for each
category for those handled under the 4 alternative
ways of recruitment outlined above.
Policies are broad guidelines governing relatively
important actions in an organization.
HR policies can be expressed as overall statements
of the organization philosophy and of its values.
Its an expression of its values or belief about how
people should be treated. Any organization gets
its reputation from its value systems.
HR policies enable organizations carry out their
objectives in the desired manner they create
They ensure employees are informed of the
employers expectations.
They protect the common interest of all parties in
the organization
Organizational structure
Employment policy
Human resource development
Staff relations
Benefits policy
Other policies may include: Recruitment, Selection
and Placement policies, Staff Rules and regulations,
Separation policies, Termination procedures,
Communication etc

Employee management is a Supervisor or Managers
first concern at work.
Upon hiring a superior workforce, a Supervisor needs to
understand and perform the employee practices that
keep employees motivated, inspired, developing, and
attaining goals with your guidance.
Effective management and leadership of employees
allow accomplishment of goals at work.
Effective employee management and leadership allows
one to capitalize on the strengths of other employees
and their ability to contribute to the accomplishment of
work goals.
Successful employee management and leadership
promote employee engagement, employee motivation,
employee development, and employee retention.
Is concerned with assisting employees to
develop up-to-date skills, knowledge, and
Orientation and socialization helps employees
to adapt
Four phases of training and development
Employee training
Employee development
Organization development
Career development
A process of adaptation to a new work role.
Adjustments must be made whenever individuals
change jobs
The most profound adjustment occurs when an
individual first enters an organization.
The assumptions of employee socialization:
Socialization strongly influences employee
performance and organizational stability
Provides information on how to do the job and
ensuring organizational fit.
New members suffer from anxiety, which motivates
them to learn the values and norms of the
Orientation may be done by the supervisor, the
HRM staff or some combination.
Formal or informal, depending on the size of
the organization.
Covers such things as:
The organizations objectives
HRM policies and benefits
Fellow employees
Learning the Organizations Culture
Culture includes long-standing, often unwritten
rules about what is appropriate behavior.
Socialized employees know how things are done,
what matters, and which behaviors and
perspectives are acceptable.
Management can be involved by:
Welcome employees.
Provide a vision for the company.
Introduce company culture -- what matters.
Convey that the company cares about employees.
Allay some new employee anxieties and help
them to feel good about their job choice.

Employee training
a learning experience designed to achieve a
relatively permanent change in an individual that
will improve the ability to perform on the job.
Employee development
future-oriented training, focusing on the personal
growth of the employee.

On-the-job training methods
Job Rotation
Understudy Assignments
Off-the-job training methods
Classroom lectures
Films and videos
Simulation exercises
Vestibule training
Job rotation involves moving employees to various
positions in the organization to expand their skills,
knowledge and abilities.
Assistant-to positions allow employees with potential to
work under and be coached by successful managers.
Committee assignments provide opportunities for:
learning by watching others
becoming more familiar with organizational members and
Lecture courses and seminars benefit from todays
technology and are often offered in a distance learning
Simulations include case studies, decision games and
role plays and are intended to improve decision-making.
Outdoor training typically involves challenges which
teach trainees the importance of teamwork.

The process of developing, implementing, maintaining, communicating
and evaluating reward strategies, policies and system aimed at ensuring
employees are rewarded fairly, consistently and equitably in accordance
with the organizations value.
Components of Reward management include
Basic pay
Reward system
Job evaluation
Pay structures
Non financial rewards
The design of an organizations compensation system may have a critical
impact on the ability to achieve its strategic goals. The reward system can

Who is attracted to and/or remains with the organization
An employees motivation
The organizations operating costs


Intrinsic versus Extrinsic Rewards
Intrinsic rewards (personal satisfactions) come
from the job itself, such as:
pride in ones work
feelings of accomplishment
being part of a work team

Intrinsic versus Extrinsic Rewards
Extrinsic rewards come from a source outside the
include rewards offered mainly by management
Financial rewards include:
profit sharing
pension plans
paid leaves
purchase discounts
Non-financial rewards emphasize making life
on the job more attractive; employees vary
greatly on what types they find desirable.
1. Decide the importance of external equity in the
organizations compensation system..
2. Decide how closely the compensation plan will be
linked to the organizations overall strategic plan.
3. Make a choice between merit pay (based on
performance) or across-the-board raises.
4. Choose the level of pay secrecy. Whether pay rates
are individualistic and secret or are public posted for
5. Determine its policy on internal equity. This is the
objective of setting wage rates that conform to the
jobs internal worth to the employer.
6. Decide how to mix intrinsic rewards (based on job
performance level) and extrinsic rewards (based on
factors outside the job).
Attract and motivate people with the necessary
characteristics to succeed in their jobs.

Retain employees who are satisfied.

Reward employees for effort, loyalty, experience
and achievement
Payroll is the sum of all financial records of salaries
for an employee, wages, bonuses and deductions.
Payroll plays a major role in an organization for
several reasons.
From an accounting perspective
From an ethics in business viewpoint
Good employee morale requires payroll to be
paid timely and accurately
The primary mission of the payroll department
is to ensure that all employees are paid
accurately and timely with the correct
withholdings and deductions

Organizations typically generate their payrolls at
regular intervals, for the benefit of regular income
to their employees.
Common payroll frequencies include: daily, weekly,
bi-weekly (once every two weeks), semi-monthly
(twice per month), and to a somewhat lesser
extent, monthly. Less common payroll frequencies
include: 4-weekly (13 times per year), bi-monthly
(once every two months), quarterly (once every 13
weeks), semi-annually (twice per year), and
Organizations may decide to outsource their
payroll functions to an outsourcing service
It is a process of continually feeding back to
subordinates information regarding their work
It can be formal or informal
Formal Methods include Appraisal by results/MBO,
The Assessment Centre method
Purposes of a Performance Management
Feedback - let employees know how well they have
done and allow for employee input.
Development identify areas in which employees
have deficiencies or weaknesses.

To Inform staff how their current performance is
being rated
Identify staff who deserve merit raises
Locate staff who need additional training
Identify candidates for promotion
Approaches to performance appraisal include:-
Superior rating subordinates
A group of superiors rating subordinates.
A group of peers rating a colleague
Subordinates rating their managers
Managers shifting standards
Rater bias
Different rater patterns
The Halo effect

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

it is important to understand what motivates people. High
performance is achieved by well-motivated people who are
prepared to exercise discretionary effort.

In order to motivate people, it is important to appreciate
how motivation works.

Motivation and money
Money is a powerful motivating force because it is linked
directly or indirectly to the satisfaction of many needs.

Money may in itself have no intrinsic meaning, but it
acquires significant motivating power because it comes to
symbolize so many intangible goals

Employee Relations or Employment Relations are
concerned with managing and maintain
employment relationships which involve handling
pay-work bargain, employment practices, terms
and conditions of employment, issues arising from
employment, etc.
Basically, the main aspect of employee relations is
the agreement whereby the employer undertakes to
pay for work done by the employee;
Employers want engagement and commitment
whereas the employees want a say in how much
they are rewarded, terms and conditions of
employment, security, healthy and safe work
environment etc.

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

There are three groups of parties to the employment
relationship who duly interact with each other in all
The employers and employees
The umbrella employee representatives (COTU in Kenya)
and umbrella employer representatives (FKE in Kenya)
The state agencies (Ministry of Labour in Kenya).
Other bodies which play a role in the employment
relationship also include:
Staff associations
Employers (industry) associations e.g. KAM
Various institutions and agencies e.g. Human Rights or
gender rights movements
The HR function
Some of the conditions necessary for establishing good
labour relations are:
Employer recognizes that workers are a part of the team
working towards common organizational goals.
Willingness on the part of the workers to play their role
(deliver the goods).
The right attitude on the part of the employer, towards
redressing workers grievances.
The right attitude of supervisors towards workers rights.
Workers/trade unions refusal to be influenced by
politicians to stage strikes.
Payment of fair wages/salaries, establishing good working
Establishing a policy which ensures equitable share of
workers in gains of increased productivity.
Workers indiscipline
Poor working conditions
Managements intolerant attitude towards
Inadequate pay structure
Heavy work loads
Poor attitude of supervisors lack of human
relations skills
Unfair labour practices victimization,
Introduction of new technology without
adequate preparation

Grievance policy on handling grievances should
provide a guideline and the approach in dealing with
them. For example, most companies espouse the
policy that employees should:
Be given fair hearing by the immediate
supervisor/management concerning any grievances
they wish to raise.
Have the right to appeal to more senior
management against a decision made by their
immediate supervisor.
Have a right to be accompanied by a fellow
employee of their own choice when raising a
grievance or appealing against a decision.

It is a requirement by the laws of labour
internationally, that employers provide several
types of insurances for the employees. In Kenya
WIBA is compulsory insurance that all employers
must take for their employees.
These differ in scope and magnitude by region, by
country, by industry/sector and by organization.
The scope follows what is governmentally defined
but the magnitude is controlled by a myriad of
factors including the organizational culture, the
size of the organization and the relevance of the
defined risks.
The process by which an employee terminates or is
terminated from employment.
There are several ways depending on the prevailing
circumstances, these include:-
Lay offs
Dismissal or discharge
A staff member can be terminated due to the following
offences but is not restricted to only them.
On grounds of ill health and based on certification by a
recognized medical practitioner
As a result of a consistently unsatisfactory performance,
as outlined in the Staff Policies Manual of the
Absence from duty without leave, or failure to report for
duty at the end of a leave period without valid reasons.
As a result of dishonesty involving organizations
property or misuse of the organizations resources.
Insubordination, acts of sabotage, subversion
Conviction by court of law of a criminal offence
Engagement in activities likely to compromise
discipline, or bring the organization into disrepute.