BUS 312

BUS 312: Human Resource Management (2 Units)

1. Meaning,

2. Scope and Nature of HRM;

3. Supply and demand characteristics of labour – by type;

4. Organisation of the personnel functions;

5. Manpower Planning;

6. Motivation;

7. Leadership styles;

8. Training and Development;

9. Performance appraisal,

10.Disciplinary procedures,

11.Employee welfare.

1
 MEANING,
Introduction
The terms ‘human resource management’ (HRM) and ‘human resources’ (HR)
have largely replaced the term ‘personnel management’ as a description of the
processes involved in managing people in organizations. This section focuses on
how this asset is managed effectively to achieve the objectives of the organisation.
Human resources management is an integral part of every manager’s function as
long as he/she has people working under him/her. In organisations with a large
number of staff, a separate department often handles human resource function.

Meaning of Human Resource Management

Human resource management is defined as a strategic and coherent approach to
the management of an organization’s most valued assets – the people working
there who individually and collectively contribute to the achievement of its
objectives. Human resource management is defined as the totality of management
decisions and actions that affect the relationship between the organisation and
employees. Human resource management refers to activities, policies and the
general function that relate to employees or the personnel department.

SCOPE AND NATURE OF HRM;

In most organisations human resource management is grouped into several
functions:
(i) Human Resource Planning.
(ii) Recruitment
(iii) Selection
(iv) Placement
(v) Induction.
(vi) Training and Development.
(vii) Performance Appraisal.
(viii) Employee Compensation.
(ix) Welfare Services and Benefits.
(x) Industrial Relation

Functions of Human Resource Management/Department

The functions of Human Resource Management (HRM) or Department include the
following:

(a) Manpower Planning: This involves the planning for the future and finding out
how many employees will be needed in the future by the business and what types
of skills should they possess.
2
(b) Job analysis and Job description: HRM is also involved in designing the Job
analysis and Job description for the prospective vacancies. A job analysis is the
process used to collect information about the duties, responsibilities, necessary
skills, outcomes, and work environment of a particular job. Job descriptions are
written statements that describe the duties, responsibilities, required qualifications
of candidates, and reporting relationship and co-workers of a particular job.

(c) Determining wages and salaries: HRM is also involved in conducting market
surveys and determining the wages and salaries for different position in an
organization. These decisions may be taken in consultation with top management
and the Finance department.

(d) Recruitment and Selection: One of the most important functions of the HRM
is to recruit the best people for the organization. This is of crucial importance as
the success of any organization depends on the quality of its workforce.

e) Performance Appraisal: Once the employees are recruited, the HR Department

has to review their performance on a regular basis through proper performance
appraisals. Performance appraisal is the process of obtaining, analyzing and
recording information about the relative worth of an employee.

(f) Training and Development: HR department is constantly keeping a watch

over the employees of the organisation. In order to improve the efficiency level of
the employees they have to undergo regular trainings and development
programmes. All trainings and development needs are carried out by this
department. Training might include on the job or off the job training.

(g) Employee Welfare and Motivation: Happy employees mean a healthy

organization. HR Department conducts various employee welfare activities which
might include employees get together, annual staff retreats etc.

(h) Addressing Employees’ grievances: HR department is the link between the

workers and the management. Employees’ grievances in the work environment are
usually entertained and resolved by the HR Department.

(i) Labour Management Relations: For the smooth operation of any organization,
it is crucial to have good labour management relations. HR department has to
ensure that these relations are cordial. In case of any labour-management conflict

3
the HR Department will play a vital role in bringing both management parties to
the negotiation table and resolving the issue.

(j) Implementing organizational policies: HR Department has to coordinate with

line manager and see that the organizational policies are being implemented in a
proper manner. Disciplinary action can be initiated against employees who are not
following organizational rules and regulations. All these actions are conceived and
implemented by the HR department.

(k) Dismissal and Redundancy: HR Department has to take firm actions against
employees who are not following the organizational code of conduct, rules and
regulations. This can result in the dismissal of the employee. Sometimes, an
organization may no more require the services of an employee. The employee may
be made redundant. HR Department has to see that organizational and government
regulations are being followed in this process.

Self-Assessment Exercise:
1. Define Human Resource Management (5 marks)
2. What are the functions of Human Resource Management (10 marks)

4
 SUPPLY AND DEMAND CHARACTERISTICS OF LABOUR

Recruitment

Recruitment refers to all activities carried out to attract qualified applicants to fill
vacancies in an organisation.

Recruitment activities cover:

(a) Analysing job requirements

(b) Identifying sources of recruitment.
(c) Advertising the job vacancies
(d) Managing the response

Sources of Recruitment
The sources of recruitment can be classified into two:
(a) Internal and (b) External.

Internal recruitment focuses on employing people from within the organisation.

External recruitment, on the other hand, refers to the employment of people from
outside the organisation.

Internal Recruitment
This is the recruitment of employees from within the organisation.
Internal sources of recruitment are
(a) Promotions
(b) Transfers
(c) Job posting (Job posting refers to advertising a job opening or vacancy)
(d) Job bidding (is a process where potential employees can submit a proposal for
the job they want.)
(e) Conversion
(f) Upgrading

(a) Promotions: When a vacancy occurs, existing employees whose qualifications

and experience suit the vacant job could be promoted to the new position and
status. The higher position requires more skills and responsibility.

(b) Transfer: Transfer is the movement of a worker from one unit or department to
another to fill a vacancy.
5
(c) Job posting: In this method, the vacancy is officially advertised and announced
on the notice boards, house journal and memos in the organization, inviting
interested qualified staff within the organization to apply.

(d) Job bidding: In this process employees within an organisation can apply for
vacant positions if they believe they are qualified. Employees are notified of
vacancies through job postings. When the vacancy occurs, the bidders are
considered for appointment.

(e) Conversion: In this method, a worker who is in a job cadre may be considered
for conversion to another cadre if he possesses the required qualification for the
new cadre. For example, a janitor may be converted to clerical officer if he has
acquire additional educational qualification for the clerical job.

(f) Upgrading: The status of an employee can be changed to a higher level on the
acquisition of higher qualification. The difference between upgrade and conversion
is that while upgrading occurs in the same job cadre, conversion happens in a
change of job cadre

External Recruitment

This has to do with the recruitment of employees from outside the organisation to
fill vacancies.
There are six sources of external recruitment:

(a) Educational Institutions: Some organisations recruit employees direct from

universities, polytechnics and other educational institutions.

(b) Unsolicited Applications: Some organisations receive unsolicited application

letters from people seeking employment. Some of these applications are kept in
view and the applicants are communicated when there are vacancies.

(c) Employee Referrals: This refers to the use of existing employees to

recommend qualified applicants to fill vacancies.

(d) Employment Agencies: An employment agency is an organisation that recruits

employees for clients free of charge or for a fee. There are three types of

6
employment agencies: Public employment agencies, private employment agencies
and management consultancies.

(e) Professional Organisations: Professional bodies (e.g. Institute of Chartered

Accountants of Nigeria, Chartered Institute of Bankers of Nigeria etc., may
recommend members to interested organisations for employment.

(f) Advertisement: This is the recruitment of employees by advertising on the

internet, newspapers, television, radio, etc.

Selection

Selection has to do with the process of identifying and choosing the most suitable
person who meets the requirements for the job.

A typical selection process consists of the following activities:

(a) Analysis of application forms.

(b) Selection Tests.
(c) Selection Interview.
(d) Background investigations.
(e) Medical Examinations.

Analysis of Application Forms

Application form is a form on which a prospective applicant fills out details about
himself or herself.
It helps provide the background information, which can be used to carry out a
preliminary screening for suitable applicants who meet the requirements of the
organisation.

Most application forms require the following information about applicants:

(a) Name of applicant.
(b) Interests, such as hobbies and other extra-curricular activities
(c) Date and place of birth.
(d) Nationality and hometown.
(e) Present address/e-mail address.
(f) Telephone number.
(g) State of health.
(h) Marital and family status.
7
(i) Education, qualification, courses, publications etc.
(j) Previous employer
(s) Job experience-post, salary, period, type of work, reasons for leaving.
(k) Position being applied for and reasons.
(l) References.

Selection Tests

A selection test is the process of assessing the present and potential ability of a
prospective employee to do a job. Selection tests provide valuable and reliable
information on the level of intelligence, personality traits, abilities, aptitudes and
attainments of the applicant.

Examples of selection tests are:

1. Aptitude Tests: This is used to measure the potential ability of a person to do

the job or specific task within a job. Aptitudes often tested include manual
dexterity; numerical and clerical abilities.

2. Intelligence Tests: This is used to measure the ability of a person to reason

logically, to remember or learn.

3. Achievement Tests: These are used to evaluate the proficiency of a person in

the performance of a specific job. They are usually applied to experienced people
who claim they know how to do something. For example, a typist could be given
an achievement test in typing as a means of evaluating her performance.

4. Personality Tests: This measures the applicant’s social interaction skills and
general behaviour e.g. temperament, introvert extrovert etc.

5. Psychological Test: This helps selectors to determine applicants’ abilities or

characteristics. Selectors use this method to gain understanding of individuals so
that they can predict the extent to which they will be successful in a job.

Selection Interview

Selection interview refers to the formal conversation between an employer and

prospective employee to enable the employer assess the latter’s suitability for a
job.
8
Selection interviews are used to

1. Verify and clarify information provided by the applicant on the application

letter/form

2. To obtain further information on the applicant’s abilities; physical make-up;

attainment; intelligence; interests; which will help to make a valid prediction about
the applicant’s suitability for the job.

Problems with selection interviews.

1. Some interviewers are biased and prejudiced, expecting to hear what they want
to hear or expect to hear

2. Might display emotional reaction to certain statements made by the applicant.

3. The outcomes of interviews depend a lot on the qualities of the interviewer.

4. An interviewer must have a good knowledge of the position being interviewed

for and good communication skills. If the interviewers do not possess these
qualities there is likely to be a flaw in the final selection made.

Placement
Placement is the process of assigning a specific job to a selected candidate. It
involves assigning a specific rank and responsibility to an individual. It requires
matching the requirements of a job with the qualifications of the candidate.

Induction
This is the process of receiving and welcoming employees when they first join the
company and giving them the basic information they will need to settle down
quickly and happily and start work. The new employees are exposed to the culture
of the organisation during this process.

Objectives of Induction

(i) To facilitate the integration of the new employees into the system at preliminary
stages when everything is likely to be strange and unfamiliar.

9
(ii) To cultivate favourable attitude to the company in the mind of new employees
so that they are more likely to stay.

(iii) To optimize productivity of new comers at the shortest possible time.

(iv) To reduce the likelihood of employees leaving the organization.

(v) To communicate to the new employees what is expected of them, their

responsibilities, alignment with company’s vision and performance outcome.

Importance of Induction

(i) It reduces the likelihood of early exits from the organization, thereby saving the
organization the costs of replacement, induction and error corrections by new
comers.

(ii) Induction increases commitment of new employees

(iii) Induction programmes help new comers maximize their individual

contribution to the organization from the first day, thus, accelerating progress up
the leaving curve. (innovative)

(iv) Socialization: New comers are more likely to settle quickly and enjoy working
with others in the organization, if the process of socialization takes place smoothly.
This is achieved through induction programmes.

(v) It helps new employees settle in their role quicker.

(vi) It helps to establish good communication between managers and team

members

Induction Procedures

These vary among organizations. However, most induction procedures contain:

(i) Reception: Friendly receptions are organized to make new employees feel
accepted.

(ii) Documentation: A staff is assigned to take new comers through

documentation processes required by new comers.
10
(iii) Employee Handbook: Some organizations have staff handbooks which
contain issues that may not have been spelt out in the letter of appointment.

(iv) Initial Briefing: This is handled by the Human Resources department or the
head of department or unit of the new employee. The purpose is to clarify issues
contained in the staff handbook or letter of employment.

(v) Formal Induction Courses: Some organizations conduct formal induction to

convey consistent and comprehensive information relevant to the employee as a
new comer.

(vi) On-the-job Induction Training: This is aimed at training inductees on how

the job is to be done. This may be complemented with formal training programmes
to provide new comers with additional relevant information

Job Analysis

Definition of Job Analysis

Job analysis is the process of examining a job with a view to identifying its
components and conditions under which it is performed.
Job analysis examines the following aspects of a job:

(a) Activities/duties/responsibilities.
(b) Relative importance of the job.
(c) Relationship between the jobs and other jobs in the organisation.
(d) Knowledge, skills and attitudes required to perform the job.
(e) Conditions under which the job is carried out.

Methods of Job Analysis

Four main methods are used to collect job analysis data. These are (a) interviews
(b) questionnaires (c) observations and (d) diaries.

1. Interview: The job analyst obtains the data through detailed face-to-face
Interviews of the jobholder

11
2. Questionnaire: The jobholder or supervisor fills questionnaires on the activities,
Knowledge, skills, and abilities required for the job and the conditions under which
the job is carried out.

3. Observation: Here the job analyst directly observes the jobholder as he works.
The observation could be face to face or through films or photographs.

4. Diaries: Under this the jobholder is required to keep details of his/her tasks on
the job. These records are then collected for job analysis purposes.

Uses of Job Analysis

The result of job analysis helps managers to make decisions or develop policies
and procedures in the areas as explained bellow

1. Recruitment: Job analysis helps to define exactly the type of persons to be

recruited to fill positions.

2. Selection: By specifying the knowledge, skills and attitudes of a person needed

to fit a job specification, it helps to select the right person.

3. Training and Development: By specifying the knowledge, skills and attitudes

required to carry out a job it helps to develop the right training programe.

4. Compensation Administration: Job Analysis data helps in job evaluation

5. Performance Appraisal: Job specification provides criteria against which the

performance of an employee could be measured.

6. Employee benefits and Services: During job analysis, hazards affecting the job
are uncovered. This helps to devise effective ways to minimise or eliminate these
hazards.

7. Industrial relations: Job descriptions influence collective bargaining over pay,

working conditions and other terms of the collective agreement.

Job Description

This is the detailed statement of the activities involved in carrying out a specific
job.
12
A typical job description covers the following:

(a) Job Title.

(b) Place or location of the job on the organizational structure or hierarchy.
(c) Objective(s) purpose of the job and its relationship with overall company
objectives.
(d) Supervisors to which the job occupant reports to and the subordinates who
report to the job occupant.
(e) Duties or responsibilities attached to the job.
(f) Pertinent factors which influences performance of the job such as machines and
equipment used, working conditions, constraints, hazards, etc.

Job description helps to establish the relationship between the job and other jobs. It
also provides a summary of duties and responsibilities attached to the job

Job Specification
This has to do with interpretation of the job description in terms of the kind of
person suitable for the job. A job specification covers such things as the education,
experience, physical fitness, mental abilities, etc. required. Job specification helps
the human resources manager to select the right type of person for the job and
determine the training needs of current and potential occupants of the position.

ORGANISATION OF THE PERSONNEL FUNCTIONS

Meaning and Nature of Organisation

All organisations have some functions to perform. Organisations exist in order to
achieve objectives to provide satisfaction for their members. Organisations enable
objectives to be achieved that could not be achieved by the efforts of individuals
on their own. Through cooperative action, members of an organization can provide
a synergistic effect. There are many different types of organisations which are set
up to serve a number of different purposes and to meet a variety of needs.
Organisations come in all forms, shapes, and sizes
Some of the examples of different types of organisations are firm of accountants,
hotel, school, retail shop, local authority, airport, hospital, motor car manufacturer,
quarry works, banks, government department, pharmaceutical company, etc. In
reality, the structure, management and functioning of these organisations, will all
vary because of differences in the nature and types of the organisation, their
respective goals and objectives, and the behavior of the people who work in them.
13
Purpose of Organising
Organising activities are undertaken by management for the purpose of actualizing
the planed accomplishment of management goals and objectives. Organising seeks
to establish a logical pattern of relationship among the members of the organisation
to achieve efficiency in the utilization of human and material resources, enhance
effective communication and reduce conflict to the barest minimum.
Organising builds on the principle of division of labour to secure the advantages of
job specialization. Because of specialization, a lot of very intricate activities can be
undertaken by talented persons. This, in turn, facilitates the growth of the business
enterprise. Important roles of organising are coordination of diverse units,
departments and divisions of the enterprise and harnessing their efforts for the
purpose of achieving the goals and objectives of the business enterprise efficiently.

Principles of Organisation
Mullins (1996) listed and explained the following principles of organisation:

(i) Principle of the objective: every organisation and every part of the organisation
must be an expression of the purpose of the undertaking concerned, or it is
meaningless and therefore redundant.

(ii) Principle of specialization: the activities of every member of any organized

group should be confined, as far as possible, to the performance of a single
function.

(iii) Principle of co-ordination: the purpose of organising perse, as distinguished

from the purpose of the undertaking, is to facilitate co-ordination: i.e unity of
effort.

(iv) Principle of authority; in every organized group, the supreme authority must
rest somewhere. There should be a clear line of authority to every individual in the
group.

(v) Principle of responsibility: the responsibility of the superior for the acts of the
subordinated is absolute.

(vi) Principle of definition: he content of each position, both the duties involved,
the authority and responsibility contemplated and the relationships with other
positions should be clearly defined in writing and published to all concerned.

14
(vii) Principle of correspondence: in every position, the responsibility and
authority should correspond.

(viii) Principle of span of control: No person should supervise more than five, or
at the most, six direct subordinates whose work interlocks.

(ix) The principle of balance: it is essential that the various units of an

organisation should be kept in balance.

(x) Principle of continuity: re-organisation is a continuous process, in every

undertaking; specific provision should be made for it.

Characteristics of an Organisations

(i) Purpose or Objective or Goal: every organisation has a purpose or objective

or goal which provides a rallying point for all the activities of its members. Apart
from serving as a common bong for the unification of an organisation’s members,
goals are a means of measuring an organisation’s performance.

(ii) Task or Activity: every organisation carried out a major task of one kind or
the other which relates to and is directed towards the realization of its missions or
objectives.

(iii) Division of Labour: every organisation uses a system of division of labour

whereby each member is allocated or apportioned a fraction of the task of the
overall organisation. The resulting specialization increases individual output and
overall organisational efficiency.

(iv) Hierarchical Structure of Authority and Responsibility: every organisation

has a form of structure through which the activities and efforts of its members are
co-ordinated. The structure shows the way duties and responsibilities are divided
between or among people and the way the efforts of people engaged in different
activities are integrated.

(v) Employees: every organisation sees people to perform task. It is human

resources that make the concept of organisation meaningful because an
organisation cannot exist without people.

15
(vi) Input-Output Analysis: every organisation obtains resources or inputs from
the external environment and turns these into output which are sent back to the
external environment.

Classifications of Organisation

In classifying organisations, there are different types of classifications depending

on the criteria being used. In this regard, four (4) criteria are going to be used in
this text to classify organisations, the four (4) criteria are:

i Structure,
ii Ownership,
iii Type of authority, and
Iv Major purpose

(A) Using Structure

Organisations can be classified into formal and informal organisations using
structuring as a criterion.
1) Formal organization: The formal organisation comprises patterns of
relationships, communication channels and authority structure recognised by
management for the purpose of achieving the goals of the organization. These
patterns are the result of conscious decisions of management directed at goal
accomplishment. The formal organisation is characterised by clearly defined roles,
jobs, hierarchical structure, rules, procedures and pattern of relationships.

2) Informal organization: informal organisation exists in the context of the formal

organisation but does not officially form part of it. Informal organisations exist to
serve certain needs of members of the formal organisation which are outside the
scope of the formal organisation and which the formal organisation may find
difficult to serve. Common informal groups in our organisations are Esusu group,
prayer groups such as fellowships, social or economic groups such as cooperative
societies, ethnic associations, cult groups, etc. whose primary role is to protect or
advance the interests of members employed in the organisation.
Informal organisations have objectives, structure of roles, patterns of
communication, leadership, rules, regulations and procedures. In most cases, these
patterns/features are written into a constitution adopted by members. Informal
organizations are so-called because they are not prescribed by management
organization.
Since informal organizations emerge out of the formal organisation to serve the
economic, social, psychological and cultural needs of its members, their activities
16
may have positive or negative effect on the ability of the formal organisation to
achieve its goals. When the interest of the informal organization does not conflict
with those of the formal organisation, their operation may indeed benefit the
formal organisation. However, when their goals are in conflict with those of the
organisation, their existence and operation may have negative effect on the formal
organisation. Examples of this are the operation of cult groups in higher
institutions where they create a high sense of insecurity for the entire community
and hence jeopardise attainment of the formal organization.

Advantages of a Formal Organisation

(a) Helps in achieving objectives

(b) Puts resources to the best use
(c) Ensures that benefits of' specialization can be received due to pre-determination
of division of labour.
(d) Develops the feeling of cooperation.
(e) Prevents duplication of work
(f) Ensures that efficiency of employees can easily be measured due to pre-
determination of rights and duties of each individual.
(g) Provides for well-defined authority and responsibility to avoid friction and
misunderstanding.
(h) Makes officers accountable for resources allocated to them.
(i) Makes standardization of work become practicable.

Disadvantages of Formal Organisation

(a) In this type of organisation, procedures, programmes, rules, etc., are followed
strictly, that is why changes are difficult to effect.

(b) Rules are considered more important than persons.

(c) A formal organisation is impersonal; that is why, human feelings have no place
here.

(d) This organisation takes into consideration only the formal communication and
creates obstacles in the application of informal communication.

(e) Excessive and undue use of authority may take place in this type of
organisation.

17
(f) No consideration is given to the social and other needs of the human resources.

Advantages of Informal Organisation

(a) Informal organisation may fill in gaps, if any, in the abilities of managers.

(b) Informal organisation may help in solving work problems of members.

(c) Informal groups develop certain norms of behaviour which differentiate

between good and bad conduct and between legitimate and illegitimate activities.

(d) Informal groups recognise talented workers as their leaders.

(e) A manager can build better relations with his subordinates through informal
contacts.

(f) Informal groups often fill up communication gap which might arise in the
organisation.

Disadvantages of Informal Organisation

(a) The leader of an informal organisation may turn out to be a trouble maker in
`the organisation. In order to increase his influence, he may work against the
policies of management, and try to manipulate the behaviour of his followers.

(b) Informal groups generally tend to resist change. Change requires new skills but
informal groups want to maintain the status quo. This creates obstructions in
implementing new ideas, and thus organisation's growth.

(c) Informal communication may give rise to rumours which may create conflict
and misunderstanding among employees. Rumours may prove very dangerous for
the organisation.

(d) Every member of the informal group is also a member of the formal.
Sometimes, role conflict may arise because expectations and requirements of the
formal organisation may conflict with those of the informal organisation.

(e) The informal group exerts strong pressure on its members for conformity. The
members may become so loyal to their group that the group norms may become a
part of their life.

18
Qualifications and Qualities of Personnel Manager

The functions of personnel management vary from organization to organization

both in nature and degree. So the qualification requirement of a personnel manager
differ from organization to organization, depending on its nature, size, location.
However the qualification and qualities which will be applicable in general can be
summarized as follows:

(1) Personnel Attributes - The personnel manager as in the case of any other
manager must have initiative, resourcefulness, depth of perception maternal in
judgement and analytical ability, freedom from bias would enable the personnel
manager to take an objective view of both the management and workers. He must
have the intellectual integrity.

(2) Experience and Training - Pervious experience is undoubtedly an advantage

provided the experience was in an appropriate environment and in the same area.
Training in psychological aspects, Labour Legislations and more specifically in
personnel management and general management is an additional benefit.

(3) Professional Attitudes: - Professional attitude is more necessary especially in

the Nigerian context. The personnel managers‟ job, as in the case of other
managers is getting professionalized. He should have patience and understanding,
ability to listen before offering advice.

MANPOWER PLANNING;

Human Resource planning is the process of forecasting future human resource

needs of an organisation so that steps can be taken to ensure that these needs are
met (Stone & Meltz, 1983).

It is the process by which managers ensure that they have the right number and
kind of capable people in the right place and at the right time (Robbins & Coulter,
2007).

Human Resource planning involves the following activities:

(a)Detailed analysis of the organisation’s work force.

19
 (b)Analysing and recommending policies and procedures for effective
utilization of the organisation’s labour resources.

(c)Forecasting future human resources needs.

(d)Matching labour demand and supply

(e)Developing strategies to meet the organisation’s human resources needs

(f) Providing conditions that will enable employees grow in their jobs and
advance their careers.

Steps in the Human Resource Planning Process

(i) Identify organizational objectives: Here, the human resource planner

must define the objectives of the organization and the strategies for
achieving them. These strategies may affect the following: organizational
structure, marketing strategies, production systems, etc.

(ii) Estimate human resource needs: At this stage the human resource needs
of the organisation for the period is forecasted. The manager is expected to
estimate in precise terms the human resource (in terms of skills, quantity,
experience, age, etc.) needed to achieve its objectives.

(iii) Analyse existing human resources: This stage consists of detailed

inventory of the organisation’s existing workforce in terms of number, skills,
age, work experience, turnover rate, etc.

(iv) Calculate net human resource needs for the period: This is derived by
deducting its existing workforce from the estimated workforce needed to
achieve its objective.

(v) Develop a plan: This stage consists of developing policies and

procedures to meet the net human resource requirement. The plan should
spell out all the necessary activities such as recruitment, selection, training,
compensation and career plans necessary to meet human resource needs:

Importance of Human Resource Planning

20
 (a) Human resource planning guides management in making the right
decisions relating to the number and type of employees to recruit.

(b) It also helps the organisation to adapt to changing trends in the labour
market and forecast employees needed to achieve its objectives.

(c) It helps the organisation to plan training and development programmes

more systematically.

(d) It helps to mitigate against high employee turnover

(e) The organisation will be able to estimate labour cost for budgeting
purposes.

(f) Redundancies can be avoided as the right number of employees will be

recruited for the right job and at the right time.

(g) Management can easily plan for employee benefits and welfare package.

(h) Management will be able to develop a standard or benchmark of

performance for employees so as to monitor, evaluate and control human
resource in the organisation.

MOTIVATION;
Definition of Motivation Motivation is probably an area of management which is
mostly researched. The concept is the very heart of work organisations. If a
manager can understand what will motivate his/her employees, then that manager
will have a more productive workforce. The managerial ability to understand what
motivates employees is a key diagnostic skill for a manager to possess. Thus, to a
large extent, a manager’s leadership competence is strongly related to his/her
ability to motivate, influence, direct and communicate with subordinates to achieve
organisational effectiveness. Motivation is a general term used to represent an
employee’s desire and commitment and is manifested in the dispensation of effort.
Many authorities have defined the concept differently. Zedeck and Blood (1974)
defined it as “a predisposition to act in a specific goal directed way”. Lawal (1993)
defined it as “An inner state that energises, activates, or moves and directs or
channels behaviour towards goals. Motivation refers to the drive and effort to
satisfy a want or goal. Enikanselu and Awe (2005) summarise these definitions
simply thus as “the force which energises behaviour”.

21
Types of Motivation

From the viewpoint of Rudolph and Kleiner (1989), there are two (2) types of
motivation; these are:
(i) Extrinsic motivation, and
(ii) Intrinsic Motivation

(i) Extrinsic motivation

This is related to ‘tangible’ rewards such as salary and fringe benefits, security,
promotion, contract of service, the work environment and conditions of work. Such
tangible rewards are often determined at the organisational level and may be
largely outside the control of individual managers.

(ii) Intrinsic motivation

This is related to ‘psychological’ rewards such as the opportunity to use one’s
ability, a sense of challenge and achievement, receiving appreciation, positive
recognition, and being treated in a caring and considerate manner. The
psychological rewards are those that can usually be determined by the actions and
behaviour of individual managers.

Factors Affecting Motivation

(i) Satisfaction through achievement
(ii) Growth/advancement
(iii) Job security
(iv) Interpersonal relations
(v) Company policies
(vii) Working conditions
(viii) Status
(ix) Salary including other fringe benefits, etc

Motivation Theories

Management scholars have developed several theories, over the years that help us
to describe and understand what motivates people at work. In this book, these
theories shall be grouped into the following:

(a) Content theories

(b) Process theories
(c) Reinforcement theories

22
 Content Theories
The content theories are otherwise called the need theories. The theories relate to
factors within individuals that cause them to act in a certain way.
As put by Yalokwu (2002), they are theories that deal with the factors within the
individual which start, energise, direct, maintain and stop behaviour.
The content theories attempt to provide answers to questions such as: what needs
do people attempt to satisfy? What impels them to action? In short, the theories
describe individual inner needs that are to be driven, pressured or motivated to
reduce or fulfil.
In this section, 2 of the content theories of motivation shall be examined. These
are
Maslow Hierarchy of Needs Theory and McGregor’s Theory X and Y

(a) Maslow’s Hierarchy of Need Theory:

This is one of the most widely mentioned and applied theories of motivation
which was propounded by Abraham Maslow, a clinical psychologist. The theory
was developed in 1943 and popularised during the early 1960s.
The theory is based on two fundamental assumptions,
first, that different needs are active at different times and only needs not yet
satisfied can influence behaviour.
Secondly, that needs are arranged in a specified order of importance called
hierarchy. Maslow posited that behaviour is triggered by a need deficit that is
driven, pressured or motivated to reduce or fulfil so that individuals can reduce the
tension it creates. He arranged human needs in five broad groups which are
arranged in hierarchical order of value. These are
• Physiological Needs: This is the need for survival and is the lowest level of
human needs. The needs consist of food, shelter, water, clothing, sex and sleep.
Maslow took the position that until these needs are satisfied to the degree
necessary to maintain life, other needs will not motivate people.

• Safety Needs: These pertain to the desire to feel safe, free from fear of losing
job, property, food, shelter and physical harm. This need is often met in work
organisations through fringe benefit, confirmation of appointments, insurance
schemes, safe working condition, retirement and pension schemes.

• Social Needs: This is the need to affiliate with others and be accepted by others.
It involves the need for belongingness, affection, friendship, interaction and
acceptance with relation to others.

23
 • Esteem Needs: These are needs that relate to having a positive image and also of
having contributions that are valued and appreciated by others. These needs
include selfconfidence, achievement, competence, need for knowledge, need for
status, recognition and respect of one by others.

• Self-Actualisation Needs: This in the thinking of Maslow, is the highest level of

needs in the hierarchy. It is called self-fulfilment need. It is the need to become
what one is capable of becoming, that is, to maximise one’s potentials. I will
simply put it as the need to be what you want to be. It concerns the need to
maximise the use of one’s abilities, skills and knowledge.

The hierarchy of needs theory suggests that people must meet the needs at the
bottom of the hierarchy before moving towards the higher ones. That is why
Gatewood et at (1995) noted that people who are hungry and homeless are not very
concerned with obtaining respect from their colleagues

For managers to apply the Maslow’s theory, it is pertinent to note these views and
points:

(a) A need that is satisfied is not a motivator. No wonder, people are always
striving hard to satisfy needs that are yet to be satisfied. It is unmet needs that
motivate.

(b) Managers must determine the needs of his/her subordinates and design
appropriate motivational strategies for getting the best from them.

(c) In real life, the nature of human needs is complex but the theory has assisted
managers to conceptualise motivating forces based on needs categorisation.

(d) A need might not have to be completely fulfilled before we start directing our
attention to the next level need in the hierarchy (Bartol and Martin, 1994).

Criticisms of Maslow’s Need Hierarchy Theory

1. Research works by Wahba and Bridwell (1986), Lawler and Suttle (1972), and
Hall and Nougaim (1968) did not produce any support to Maslow’s hierarchy of
needs theory. Authorities believed that the theory was neither developed from
controlled empirical studies nor was it rigorously tested. These research works
have rejected the thinking of Maslow that needs can be put in hierarchical levels.

24
 2. Another criticism of Maslow’s needs hierarchy theory is that the hierarchy as
captured by Maslow may not be applicable to everybody. The arrangement may
alter with individuals.
3. For some people, there will be a reversal of the hierarch, for example: Self-
esteem may seem to be more important than love to some people. This is the most
common reversal of the hierarchy.

Douglas Mcgregor’s Theory X and Theory Y

McGregor understood human motivation using Maslow’s needs theory. He
grouped the physiological and safety needs as ‘lower order needs’ and the social.
Esteem and selfactualization needs as ‘upper-order’ needs. McGregor proposed
two alternative sets of assumptions about people at work based on which set of
needs are the motivators. He proposed a Theory X and Theory Y model to explain
basic human traits. Theory X are appropriate for employees motivated by lower-
order needs; while theory Y are appropriate for employees motivated by higher
order needs. These theory may influence the way management think about workers
and how to motivate them to work.

Assumptions of Theory X

(i) The average human being has an inherent dislike of work and will avoid it if he
can.

(ii) People lack ambition and dislike responsibilities

(iii) Most people must be coerced, controlled, directed or threatened with

punishment to get them to expend adequate effort towards the achievement of
organisational objectives.

(iv) The average human being prefers to be directed, wishes to avoid

responsibility, has relatively little ambition, and wants security above all.

Assumptions of Theory Y
(i) Expenditure of physical and mental effort in work is as natural as play or rest.

(ii) The average human being does not inherently dislike work, which can be a
source of satisfaction.

25
(iii) External control and the threat of punishment are not the only means of
bringing about effort. People can exercise self-direction to achieve objectives to
which they are committed.

(iv) Commitment to objectives is a result of the rewards associated with their

achievement. The most significant of those rewards is satisfaction of the
selfactualisation needs.

(v) The average human being learns, under proper conditions, not only to accept,
but to seek, responsibility. Avoidance of responsibility, emphasis on security and
low ambition are the result of experience and are not inherent in man’s nature.

(vi) Capacity to exercise a relatively high degree of imagination, ingenuity and

creativity in the solution of organisational problems is widely, not narrowly
distributed in the population.

Implications
(i) Under conditions of modern industrial life, the intellectual potential of the
average human being is only partially utilised.

(ii) Many people come to the workplace highly motivated to work for the good of
the organization and want the feeling of satisfaction for a job well done. This is
especially true in human services where people select their careers not because of
the financial or material gains they expect to make, but because they hope to find
fulfillment in helping others.

(iii) When management creates an oppressive environment or fails to organize the

elements of productive enterprise in a way that will allow for creative and effective
use of energies, employee enthusiasm becomes stifled, and a potentially productive
worker can be turned into a clock watcher.

(iv) McGregor also recognized that not all employees approach work with a sense
of excitement and interest.

(v) However, he believed that it was much more common to find that management
has crushed employee enthusiasm than it was to find that employees did not
measure up to management challenges.

Techniques used to motivate employees in practice

26
 (a) Financial rewards (money): Money is one of the oldest methods of motivating
employees. Financial rewards include wages, bonuses and profit sharing. Charles
Handy (1985) argues that money is an important motivator of workers because it is
often a reflection of other motivators and helps in satisfying the individual's
physiological, safety, social, esteem and even self-actualization needs.

(b) Employee Participation: Employees may be motivated to work harder when

they are allowed to take part in decisions which affect them. As a motivation
technique, participation satisfies the growth, achievement and recognition needs of
employees.

(c) Favourable Conditions of Work: Employees could be motivated by providing

them with good conditions of work such as recreational facilities, accommodation,
canteen services, free medical care, transport facilities and the like.

(d) Enhanced Social relationship: Employees could be motivated when the

manager creates an environment that promotes good interpersonal relations.

(e) Personal Development: Employees may be motivated to put in extra effort

when they are given the chance to advance themselves through promotion, training
and development.

LEADERSHIP STYLES;

Definition of Leadership
There is an increasing realisation that leadership can determine a firm’s long-term
performance prospects. This section examines what makes a person an effective
leader and how managers can make a difference and bring about improved
performance and effective change in organisations. There are a variety of
approaches to leadership. Sometimes they lead to success and sometimes to failure.
Leaders can employ different styles and still be successful. Furthermore, a
leadership approach that is successful in one situation may not succeed in other
situations.

Following Kootnz and Weihrich (1990) we would define leadership as the art or
process of influencing people so that they will strive willingly and enthusiastically
toward the achievement of group goals.

This working definition encompasses several important features of leadership:

27
1. Leadership is a dynamic process, influenced by the changing requirements of the
task, the group itself and the individual members.
2. Leadership is not necessarily confined to one person, but may be shared
between members.
3. The leader's principal role is to influence the group towards the achievement of
group goals.
4. Leadership is exercised in, and influenced by, the particular set of circumstances
which form the organizational context

Functions of a Leader
Krech, et al (1962) identified the following as additional functions of a leader as
follows:

(a) The leader as executive: Top coordinators of the group activities overseer of the
execution of policies.

(b) The leader as planner: Deciding the ways and means by which the group
achieves its ends. This may involve both short-term and long-term planning.

(c) The leader as policy-maker: The establishment of group goals and policies.

(d) The leader as expert: A source of readily available information and skills,
although there will be some reliance on technical expertise and advice from other
members of the group.

(e) The leader as external group representative: The official spokesperson for the
group, the representative of the group and the channel for both outgoing and
incoming communications

(f) The leader as controller of internal relations: Determines specific aspects of the
group structure

(g) The leader as purveyor of rewards and punishment: Control over group
members by the power to provide rewards and apply punishments.

(h) The leader as arbitrator and mediator: Controls interpersonal conflict within
the group

(i) The leader as exemplar: A model of behaviour for members of the group,
setting an example.
28
 (j) The leader as symbol of the group: Enhancing group unity by providing some
kind of cognitive focus and establishing the group as a distinct entity.

(k) The leader as substitute for individual responsibility: Relieves the individual
member of the group from the necessity of, and responsibility for, personal
decisions.

(l) The leader as ideologist: Serving as the source of beliefs, values and standards
of behaviour for individual members of the group.

(m) The leaders as father figure: Serving as focus for the positive emotional
feelings of individual members and the object for identification and transference.

(n) The leader as scapegoat: Serving as a target for aggression and hostility of the
group, accepting blame in the cause of failure.

Leadership styles

Leadership style represents the attitude or behaviour which a leader exhibits or

demonstrates during supervision of subordinates. Leadership style can also be
referred to as the way in which the functions of leadership are carried out, the way
in which the manager typically behaves towards members of the group.
The style of managerial leadership towards subordinates and the focus of power
can be classified within a broad three (3) fold heading; these are:

(a) The authoritarian (or autocratic) style

(b) The democratic style
(c) Laissez-faire Leadership style

(a) The Autocratic Style

This is where the focus of power is with the manager and all interactions within the
group move towards the manager. Also, an autocratic leader centralizes power and
decision making to himself and exercises complete control over the subordinates.
He holds over the head of his subordinates the threat of penalties and punishment.
He sets the group goals and structures the work.

(b) Democratic/Participative Style

This is where the focus of power is more with the group as a whole and there is
greater interaction within the group. In contrast to autocrat, the democratic leader
29
practices leadership by consultation. He is like a Theory Y leader and invites
decision sharing. Here, authority is decentralised. Decisions are arrived at after
consultation with followers and participation by them.

(c) Laissez-faire Leadership style

The Laissez-faire Leadership style Sets no goals for the group; allows them total
freedom; does not communicate with the group; leaves achievement of goals to
chance; leads through non-leadership; abdicates the authority and responsibility of
the position. Allows the group complete freedom for decision making without
participating himself; may provide materials or offer assistance by request.

Qualities of an effective leader

The leader is expected to have some basic qualities/attributes such as:
(1) Skill
(2) Initiative
(3) Decisiveness
(4) Technical knowledge
(5) Intelligence
(6) Ability to inspire
(7) Responsibility
(8) Zeal/energy
(9) Knowledge of human relations,
(10) Social consciousness,
(11) Open mindedness,
(12) Communication skill,
(13) Maturity,
(14) Imagination,
(15) Desire to excel,
(16) Creative and independent thinking
(17) Endurance,
(18) Sense of humour,
(19) Courage,
(20) Foresightedness,
(21) Self-confidence,
(22) Determination,
(23) Positive attitude.

30
 TRAINING AND DEVELOPMENT;
Training and Development

Training has been defined as the planned and systematic modification of

behaviour through learning events, programmes and instruction which enable
individuals to achieve the level of knowledge, skills and competence to carry out
their work effectively (Armstrong, 2009).

Development is the ‘growth or realization of a person’s ability and potential

through the provision of learning and educational experiences’. Training generally
focuses on providing knowledge, skills and attitudes required immediately by the
individual to carry out his/her job.

Development focuses on the future – assisting the individual to grow on the job
and prepare him/her for a career and increased responsibility.

Training and development involves:

(a) Identifying an organisations training and development needs.
(b) Designing appropriate training programmes that will fill the identified
knowledge, skills and attitude gap.
(c) Running training programmes.
(d) Evaluating the impact of training on the employees’ performance and the
organisation.
(e) Preparing employees for careers in the organisation.

The Training and Development Process

Training and development process is made up of five steps:

(a) Training Needs Analysis: Training needs are differences between employee’s
current or potential performance and expected performance which can be remedied
by appropriate training. Training Needs Analysis is made up of two components:
Assessment of Organisation Needs and Identification of Individual Needs.

(b) Setting the Training Objectives: The objective(s) that the training is set out to
achieve should be specific, measureable, and unambiguous for the trainer and the
trainees to follow. There should be a clear understanding of what the company
intends to achieve in organizing the training.

(c) Drawing up of Training Programme: Appropriate training curriculum and

methods are designed to fill the knowledge and skills gap identified in (a) above.
31
(d) Implementation of Training Programme: At this point, the decision reached in
(b) is implemented.

(e) Evaluation of Training Programme: This is aimed at assessing the impact of

training programmes on trainees and the organization.

Training and Development Methods

Training methods are broadly categorized into three:

(a) One-the-job
(b) off the job and
(c) on and off the job training

(a) On-the- Job Training:

Here the training is incorporated into the work of the employee. He or she practices
the job under close supervision of an experienced supervisor or worker until he is
skilled enough to do the job alone.

Examples of on-the-job training methods are as follows:

(i) Demonstration: Here, the trainer shows in a systematic manner the method of
carrying out a specific job and allows the trainee do it himself.

(ii) Understudy: An understudy is a person who is training to assume, at a future

date, the duties currently performed by his/her superior. An individual or group is
assigned to assist a superior officer in the performance of his/her duties. When the
understudy shows promise or talent he/she takes over when the superior is
transferred, retired or is promoted to a higher position.

(iii) Job Rotation/Planned Experience: Job rotation is the practice of rotating

people from job to job or from one department to another, or from one branch to
another with a view to exposing them to new challenges and diversified skills.

(iv) Project or Committee Assignments: In this method, managers are assigned to

projects or committees to carry out specific assignments. These assignments help
to improve their decision- making skills and ability to organise resources.

(v) Temporary Promotions: To help some managers acquire the necessary

managerial skills they are assigned higher responsibilities and made to carry out
the challenging tasks of the higher position.
32
(b) Off-the-job training: As the name implies the employee is trained outside the
organisation. Examples of off-the-job training are as follows: -
(i) Sponsorship for short courses organized by consultants and educational
institutions.
(ii) Day releases to enable employees attend professional courses.
(iii) Distance learning
(iv) Computer based learning approved by the organisation.

(c) On-and-off-the-job training:

This training combines the features of (a) and (b). The employee is trained outside,
comes back to apply the skills on the job and goes back for further training.

Examples of this type of training are:

(i) Internship.
(ii) Study tours.
(iii) Attachments.

Benefits of Training and Development

An organization with a good training programme derives the following benefits:

(a) Improved Performance on the Present Job: After a training programme, the
employee’s level of performance on the job increases.

(b) Improved Morale: Training programmes help to increase the morale and job
satisfaction of trainees.

(c) Reduction of Operational Problems: Training helps to reduce operational

problems such as accidents, high labour turnover, poor customer service, waste and
excessive maintenance costs.

(d) Increased Productivity: By improving the standard of performance, quality of

workmanship and morale of workers, training helps to increase production and
hence, profits of the organisation.

(e) Provision of Human Resource Needs: The organisation fulfils its needs for
certain type of skills without going out to recruit.

33
(f) Reduced Supervision: Well-trained workers need no close supervision – they
need not be told what to do in every situation.

(g) Improved Services to Customers: Training exposes employees to new ideas and
techniques, which help to improve service to customers and enhance the image of
the organisation

PERFORMANCE APPRAISAL,

Performance appraisal has to do with the process of monitoring an employee’s

performance on the job and his/her potential for development. Activities often
included in this function are:

(a) Developing and administering appraisal systems.

(b) Counselling employees on their career plans

Methods of conducting Performance Appraisal

The appraisal methods currently in use include the following:

(a) Descriptive essay: Basically, this method requires the supervisor to write his
impressions about the subordinate’s performance in a narrativeform.

(b) Ranking: In this method the supervisor compares each subordinate with his/her
colleagues and ranks them in order of merit (using clearly defined job standards or
criteria).

(c) Assessment by co-employees: Under this method, peers are made to assess their
colleague’s performance.

(d) Rating Scale: this is the oldest and most widely used of the appraisal systems.
This system has four basic features:

(i) A list of personality traits or qualities desired for a particular job is

drawn up. Some of the desired traits and qualities often included in appraisal
forms for staff are Job knowledge; Quality of work; Dependability;
organization of work; Discipline; Strengths; weaknesses; initiative, attitude
to work, decisiveness, creativity, emotional stability; leadership ability;
availability and punctuality.
34
 (ii) Forms are designed to contain the personality traits.

(iii) The rater is supplied with these forms, one for each person to be rated

(iv) The rater observes the actual performance of the employee and ticks off
on the form the traits which describe exactly his work performance.

Criteria for an effective performance appraisal system

Successful performance appraisal systems have a number of common

characteristics.
The following discussion focuses on the criteria for a successful performance
appraisal system:

(a) Clear Appraisal Objectives: The objectives of appraisal should be

specific. An efficacious and best-in-class performance review system will
always have specific appraisal attributes to match the employee’s job
description.

(b) Accurate, Valid, and Reliable Data: An effective performance

appraisal system provides consistent, reliable, and valid data to help the
management make strategic decisions. It furnishes data according to the goal
that serves the purpose of performance appraisal and succession planning.
Accurate data and insights ensure a fair and transparent performance
appraisal system that earns the trust of your employees.

(c) Well Defined Performance Criteria: Effective performance appraisal

system has standard and top-rated appraisal forms, rules, and appraisal
procedures along with well- defined performance criteria and standards. For
instance, you cannot rate a graphic designer based on a skill, which is not
present in his/her job description.

(d) Management and employee endorsement: To be effective, the

appraisal system should be supported by the entire work force. This includes
management support for possible expenses such as additional training,
employee meetings, and appraisal forms and other materials, and staff time.

(e) Flexibility: An organisation must design its system with enough

flexibility to adapt to any changes that might occur.
35
(f) Performance dialogue: Performance discussions between the rater and
the employee are perhaps the most critical component of a successful
performance appraisal system.

(g) Periodic system checks: Systematically evaluating the validity of the

performance appraisal system should be a key feature.

(h) Less Time Consuming: Effective performance appraisal systems are

designed to be economical and less time-consuming to get maximum
benefits. HR personnel need not waste all their valuable time only on the
managerial tasks. With a good performance appraisal system, they can spare
time and effort to focus on other important and productive jobs.

(i) Post Appraisal Interview: A post appraisal talk should be arranged

between employees and immediate superior to exchange feedback. This
helps the organization to learn about the problems and difficulties the
employees facing and discover suitable training. Action should be taken on
the feedback of employees to build mutual trust between the employees and
the management.

(j) Continuous Feedback: Modernized performance appraisal systems are

the most effective ones. The system is not an annual process anymore, but a
process that happens throughout the year. The ratings at the end of the year
are not a surprise to the employees because of the continuous feedback
delivered by managers on the employees’ performance. This allows the
employees to fill the gaps in their performance and skills. Managers can also
arrange development plans that suit his/her team members.

(k) Measure significant behaviour: The behaviour of the employees that

are relevant to the job should be taken into account during the appraisal
process, not his/her personal behaviour. An employee should be evaluated
based on the competencies and his/her ability to achieve the goals, not on his
problems with colleagues or attitude, which is irrelevant to the job.

36
 DISCIPLINARY PROCEDURES,

Employee Discipline
To maintain discipline is to make sure that everyone obeys and complies with the
rules and regulations for the collective smooth running of the organisation. In
doing so, exceptional behaviours are recognised and rewarded and bad ones are
identified and given different degrees of punishment.

We define discipline as the situation where people obey rules or standards of

behaviour established by the organisation. Disciplinary procedures refer to the
procedures or logical steps to be taken before disciplinary action is taken against an
employee who infringes the rules or standards of behaviour. The process of
effectively punishing errant, unacceptable and deviant behaviours and actions
among employee is known as disciplinary action.

Features of Effective Discipline

Discipline can only be effective if, in the presence of both the worker and the
employer, it is seen to be applied fairly with the framework of the laid down
legislation. To ensure that discipline is applied fairly, procedural and substantive
fairness is very important.
The most important features that ensure procedural fairness is given below:

(a) The offence: The employee must be informed of the nature of the offence and
the details of the complaint.

(b) Timely discipline: The disciplinary action must be taken within a reasonable
period after the offence has been discovered. If the management does not act
timely, it may seem that the behaviour is being condoned.

(c) Nature of hearing: It is important that the employee should receive notification
of the hearing date sufficiently in advance, so that he can make necessary
preparations for his defence.

(d) Representative: It is the worker’s right to have a representative of his choice at

the hearing. It could be any another worker who agrees to do so.

(e) The right to state his case or to defend himself: If he so prefers, a worker has
the right to defend himself and to take up his own defence without a representative.

37
 (f) The right to call witnesses: The worker may call any witness to strengthen his
defence. The same holds for the complainant. Written eveidence is also acceptable.
Everyone who stands as witness can be cross examined by the other party to verify
his evidence that it is true.

(g) The right to call an interpreter: Any worker has the right to use an interpreter, if
he is not familiar enough with the language in which the case is heard.

(h) The right to a finding: The worker must be informed of whether he is guilty or
not guilty; and has also the right to be fully informed of the facts and reason
leading up to the finding.

(i) Previous service record: A worker has the right to have his previous service
record taken into account for the sentence. Therefore, it is part of the fairness of a
trial that a worker can plead mitigating circumstances in the light of his service
record.

(j) The punishment: The worker must be informed of the punishment he will
receive. The disciplinary measure that is applied must, therefore, also be conveyed
to him, such as a final warning.

(k) Appeal: The worker has the right to appeal, id he is found guilty of an offence
that can lead to a written warning and his dismissal

Objectives of Employee Disciplinary actions

The objectives are to:
(a) gain willing acceptance of the rules, regulations, standards and procedures of
the organisation front the employees.

(b) Promote morale and efficiency among the workers.

(c) Develop the feeling of cooperation among the workers.

(d) Develop a sense of tolerance and respect for human dignity.

(e) Maintain good industrial relations in the organisation.

Causes of Indiscipline in an organization

(a) Attendance problems: These include unexcused absence, chronic absenteeism
and unexcused/excessive tardiness.
38
(b) Dishonesty and related problems: These include financial fraud, theft,
falsifying employment application, willfully damaging organizational property and
falsifying work records.

(c) Work performance problems: These refer to failure to complete work

assignments, producing substandard products or services and failure to meet
established production requirements.

(d) On- the- job behaviour problems: These cover issues like intoxication at work,
insubordination, horseplay, smoking in unauthorized places, fighting and
gambling. Others are failure to use safety devices, failure to report injuries,
carelessness, sleeping on the job, using abusive or threatening language with
supervisors, possession of narcotics or alcohol, possibility of firearms or other
weapons and sexual harassment.

Disciplinary Measures in an organisation

The popular disciplinary measure give to guilty workers are as follows:

(a) Verbal warning
(b) Written warning
(c) Reprimand
(d) Serious written warning
(e) Loss of pay for the corresponding period the worker is not on duty
(f) Withholding of, deferment of increment
(g) Reduction in salary
(h) Interdiction: placed on half salary
(i) Demotion/reduction in rank
(j) Suspension
(k) Transfer
(l) Termination of appointment
(m) Retirement (n) Dismissal

EMPLOYEE WELFARE.

Wage and salary administration

Wage and salary administration is a collection of practices and procedures used for
planning and distributing company-wide compensation programs for employees.

39
These practices include employees at all levels and are usually handled by the
accounting department of a company. Most organisations pay a lot of attention to
employee compensation issues because labour costs are increasingly growing as a
result of pay increases arising out of employee agitations. Employee compensation
is also directly related to employees’ job satisfaction, morale and motivation. The
root cause of most labour/management conflicts is often disputes over
compensation. It is therefore necessary to pay attention to compensation issues.
Employee compensation, simply put refers to rewards given to employees in return
for the services they offer to the organisation. Compensation has two primary
areas—benefits and salary administration. In many organizations, payroll is a
function of the accounting department. In other organizations, payroll is placed in
compensation.

Objectives of Wages and Salary Administration

The main objective of wage and salary administration is to establish and maintain
an equitable wage and salary system. This is so because only a properly developed
compensation system enables an employer to attract, obtain, retain and motivate
people of required calibre and qualification in his/her organisation.

Core objectives of wages and salary administration in any organisation are

embedded in the following activities:

(a) Reward employees according to the effect and merit.

(b) Attract and retain the services of desirable employees.

(c) Get improved employee morale and productivity.

(d) Keep labour cost within reasonable limits so as to safe guard the interests of
shareholders, competitive worth of the org and its product and profitability.

(e) Pay employee according to the importance and difficulty of the job.

(f) Facilities payroll administration, budgeting and wage and salary control.

(g) Explain to the employees how and why they are paid.

40
Principles of Wages and Salary Administration

When establishing the general level and structure of wages and salaries in an
organisation, the following factors are taken into consideration:

(i) Ability to Pay: Since wages and salaries are paid out of the revenue of the
organisation, the compensation given to employees must be determined by the
level of its financial performance. An organisation which offers higher wages and
salaries than it can afford risks losing its competitiveness in the industry.

(ii) Government Minimum Wages: The level of wages and salaries in most private
or public sector organisations is influenced by government minimum wage
legislation.

(iii) Wages and Salaries paid by competitors. The level of wages and salaries paid
by organisations in the private sector is sometimes influenced by the rates paid by
competitors.

(iv) Terms of Collective Agreement: In unionized organisations, the level of wages

paid by employers is governed by the collective bargaining agreement signed
between employee associations and management.

(v) Availability of that Type of Labour: The compensation paid to specific

employees may be influenced by the scarcity or otherwise of the skills possessed
by these employees. Where the skills are scarce in the labour market, employers
are often prepared to offer higher compensation to attract and retain such
employees.

(vi) Qualifications: Some organisations’ wages and salary structure are closely tied
to the qualification of employees. The higher the qualification the better the pay.

(vii) Job Evaluation Results: The relative value of each job and the relationship
among the wages offered for jobs in an organisation may be determined by job
evaluation.

41
Establishment of Methods of Compensating Employees

There are many methods of remunerating employees. The most popular are Piece
rate, by which employees are paid on the basis of output and Time rates, by which
employees are paid on the basis of time spent on the job.

(a) Piece Rate (Payment by Results): Under the piece rate system the worker is
paid in direct proportion to his/her output. This method is used where the output of
each worker can easily be measured and a relationship between the employee’s
effort and output could be established; the job is standardized, repetitive and work
flow is regular.

(b) Time Rate: Under a time rate system, the employee is paid according to the
time spent on the job. This method of remuneration is used where it is not easy to
measure or distinguish units of output; workflow is irregular and beyond the
control of employees; and it is not easy to establish a relationship between
employee’s effort and output.

Designing and Implementing Incentive Schemes

Incentives

Incentives refer to rewards made to employees (in addition to their normal pay)
with a view to motivating them to increase their performance.

Financial incentives pay systems often used are as follows:

(a) Piece Rate: In this system a standard ‘piece rate’ is established by management
and the pay of the individual employee is determined by multiplying the number of
units produced by the piece rate.

(b) Stock (Shares) Ownership Plans: Under this system, employees are allotted the
company’s shares, and are entitled to receive dividends.

(c) Commission: There are several variants of financial incentive pay systems
based on commission, but, generally the employee is rewarded on the basis of sales
volume. The higher the volume of sales made by the employee the higher the
commission paid to him. Most salesmen are rewarded through commissions.

42
(d) Bonuses: This refers to rewards offered to employees at periodic intervals for
high performance. In some organisations, the bonus is paid across board to every
employee in the organisation (or a department/section) when profits are good.

(e) Profit sharing: In this case, employees share in the financial gain resulting from
increased productivity or added value.

43