REPUBLIC OF KENYA

LEARNING GUIDE

FOR

HUMAN RESOURCE MANAGEMENT

LEVEL 6

TVET CDACC
P.O BOX 15745-00100
NAIROBI

©TVET CDACC 2020

©TVET CDACC 2020
 © First published 2020
Copyright TVET CDACC

All rights reserved. No part of this learning guide may be reproduced, distributed, or
transmitted in any form or by any means, including photocopying, recording, or other
electronic or mechanical methods without the prior written permission of the TVET
CDACC, except in the case of brief quotations embodied in critical reviews and certain
other non-commercial uses permitted by copyright law. For permission requests, write to
the Council Secretary/CEO, at the address below:

Council Secretary/CEO
TVET Curriculum Development, Assessment and Certification Council
P.O. Box, 15745–00100,
Nairobi, Kenya.
Email: [email protected]

©TVET CDACC 2020 i

 FOREWORD

The provision of quality education and training is fundamental to the Government’s overall
strategy for social economic development. Quality education and training will contribute to
achievement of Kenya’s development blueprint, Vision 2030 and sustainable development
goals.

Reforms in the education sector are necessary for the achievement of Kenya Vision 2030 and
meeting the provisions of the Constitution of Kenya 2010. The education sector had to be
aligned to the Constitution of Kenya 2010 and this resulted to the formulation of the Policy
Framework for Reforming Education and Training (Sessional Paper No. 4 of 2016). A key
feature of this policy is the radical change in the design and delivery of the TVET training.

This policy document requires that training in TVET be competency based, curriculum
development be industry led, certification be based on demonstration of competence and mode
of delivery allows for multiple entry and exit in TVET programmes. These reforms demand
that the industry takes a leading role in curriculum development to ensure the curriculum
addresses its competence needs. It is against this background that the Occupational Standards
were developed for developing a Competency-Based Curriculum and hence, this Learning
Guide.

It is my conviction that this Learning Guide will play a great role towards development of
competent human resource for the human resource sector’s growth and development.

PRINCIPAL SECRETARY, VOCATIONAL AND TECHNICAL TRAINING

MINISTRY OF EDUCATION

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 PREFACE

Kenya Vision 2030 is anticipated to transform the country into a newly industrializing;
“middle-income country providing a high-quality life to all its citizens by the year 2030”. The
Sustainable Development Goals (SDGs) further affirm that the manufacturing sector is an
important driver to economic development. The SDGs number 9, which focuses on Building
resilient infrastructures, promoting sustainable industrialization and innovation can only be
attained if the curriculum focuses on skill acquisition and mastery. Kenya intends to create a
globally competitive and adaptive human resource base to meet the requirements of a rapidly
industrializing economy through life-long education and training.

TVET has a responsibility of facilitating the process of inculcating knowledge, skills and
attitudes necessary for catapulting the nation to a globally competitive country, hence the
paradigm shift to embrace Competency Based Education and Training (CBET). The Technical
and Vocational Education and Training Act No. 29 of 2013 and the Sessional Paper No. 4 of
2016 on Reforming Education and Training in Kenya, emphasized the need to reform
curriculum development, assessment and certification to respond to the unique needs of the
industry. This called for shift to CBET to address the mismatch between skills acquired through
training and skills needed by the industry as well as to increase the global competitiveness of
Kenyan labour force.

TVET Curriculum Development, Assessment and Certification Council (TVET CDACC) and
industry expert workers and accredited Curriculum Developers developed the Occupational
Standards which was the basis of developing competency-based curriculum, assessment tools,
mentoring tools and learning guide for competence certification in human resource level 6.
The learning guide is geared towards promoting efficiency in delivery of curriculum.

The learning guide is designed and organized with clear and interactive learning activities for
each learning outcome of a unit of competency. The guide further provides information sheet,
self-assessment tools, equipment, supplies, materials, and references. I am grateful to the
Council Members, Council Secretariat, Sector skills experts, consultants and all those who
participated in the development of this learning guide.

Prof. CHARLES M. M. ONDIEKI, PhD, FIET (K), Con. Eng Tech.

CHAIRMAN, TVET CDACC

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 ACKNOLEDGEMENT

This learning guide has been designed to support and enhance uniformity, standardization and
coherence in implementing TVET Competency Based Education and training in Kenya. In
developing the learning guide, significant involvement and support was received from various
organizations.

I recognize with appreciation the critical role of the participants drawn from collabourating
industries, technical training institutes, universities, private sector and consultants in ensuring
that this learning guide is in-line with the competencies required by the industry as stipulated
in the occupational standards and curriculum. I also thank all stakeholders in the for their
valuable input and all those who participated in the process of developing this learning guide.

I am convinced that this learning guide will go a long way in ensuring that workers in human
resource sector acquire competencies that will enable them to perform their work more
efficiently and make them enjoy competitive advantage in the world of work.

DR. LAWRENCE GUANTAI M’ITONGA, PhD

COUNCIL SECRETARY/CEO
TVET CDACC

©TVET CDACC 2020 iv

 TABLE OF CONTENTS
FOREWORD ...................................................................................................................... II
PREFACE ......................................................................................................................... III
ACKNOLEDGEMENT .................................................................................................... IV
TABLE OF CONTENTS ................................................................................................... V
LIST OF FIGURES .......................................................................................................... IX
LIST OF TABLES ............................................................................................................. X
ACRONYMS .................................................................................................................... XI
CHAPTER 1: INTRODUCTION ....................................................................................... 1
1.1 Background Information ........................................................................................ 1
1.2 The Purpose of Developing the Learning Guide.................................................... 1
1.3 Layout of the Trainee Guide .................................................................................. 2
1.4 Learning Activities ................................................................................................. 2
1.5 Information Sheet ................................................................................................... 2
1.6 Self-Assessment ..................................................................................................... 2
1.7 Core Units of Learning........................................................................................... 3
CHAPTER 2: MANAGE ORGANIZATIONAL BEHAVIOUR ...................................... 4
2.1 Introduction ............................................................................................................ 4
2.2 Performance Standard ............................................................................................ 4
2.3 Learning Outcomes ................................................................................................ 4
2.3.1 List of Learning Outcomes ................................................................................... 4
2.3.2 Learning Outcome No 1: Analyse individual and group behaviour ..................... 5
2.3.3 Learning Outcome No 2: Evaluate different motivational theories ................... 10
2.3.4 Learning outcome No 3: Evaluate various leadership styles .............................. 18
2.3.5 Learning outcome No 4: Manage conflict and negotiations at work place ........ 23
2.3.6 Learning outcome No 5: Manage organization change and culture ................... 33
..................................................................................................................................... 33
2.3.7 Learning outcome No 6: Manage groups and teams at the workplace ............... 49
2.3.8 Learning outcome No 7: Manage perceptions, personalities and emotions in the
work place.................................................................................................................... 56
2.3.9 Learning outcome No 8: Manage values and attitudes in the work place .......... 64
2.3.10 Learning outcome No 9: Managing work place Stress..................................... 70
CHAPTER 3: DEMONSTRATE MANAGEMENT OF HUMAN RESOURCES ........... 77
3.1 Introduction ............................................................................................................ 77
3.2 Performance Standard ............................................................................................ 77
3.3 Learning Outcomes ................................................................................................ 77
3.3.1 List of Learning Outcomes ................................................................................. 77
3.3.2 Learning Outcome No1: Identify the purpose of human resources management78
3.3.3 Learning Outcome No2: Demonstrate understanding of evolution of human
resources management ................................................................................................. 87
3.3.4 Learning Outcome No3: Provide human resources support service .................. 94
3.3.5 Learning Outcome No4: Address emerging issues in human resources .......... 103
CHAPTER 4: COORDINATE PERFORMANCE MANAGEMENT ............................. 111
4.1 Introduction .......................................................................................................... 111

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 4.2 Performance Standard .......................................................................................... 111
4.3 Learning Outcomes .............................................................................................. 111
4.3.1 List of Learning Outcomes ............................................................................... 111
4.3.2 Learning Outcome No1: Identify organizational performance objectives ....... 112
4.3.3 Learning Outcome No2: Develop departmental and individual work plans .. 118
4.3.4 Learning Outcome No3: Carry out periodic performance appraisal ................ 124
4.3.5 Learning Outcome No4 Manage reward and under performance .................... 130
4.3.6 Learning Outcome, No5. Initiate performance improvement program. ........... 135
4.3.7 Learning Outcome No 6. Explore alternative approaches to performance
management ............................................................................................................... 143
CHAPTER 5: CORDINATE LEARNING AND DEVELOPMENT .............................. 148
5.1 Introduction .......................................................................................................... 148
5.2 Performance Standard .......................................................................................... 148
5.3 Learning Outcomes .............................................................................................. 148
5.3.1 List of Learning Outcomes ............................................................................... 148
5.3.2 Learning outcome No1: Carry out training needs assessment ......................... 149
5.3.3 Learning Outcome No2: Prepare capacity building programme and calendar 160
5.3.4 Learning outcome No 3: Conduct Capacity Building ..................................... 166
5.3.5Learning Outcome No4: Coordinate coaching and mentoring programme ...... 175
5.3.6 Learning Outcome No 5: Enhance knowledge management in the work place180
5.3.7 Learning Outcome No 6: Conduct training impact assessment ...................... 186
5.3.8 Learning Outcome No7: Review training and development programme........ 191
5.3.9 Learning Outcome No 8: Manage Professional Growth and Career Development in
the workplace ............................................................................................................. 196
CHAPTER 6: PREPARE HUMAN RESOURCE BUDGETS ........................................ 205
6.1 Introduction .......................................................................................................... 205
6.2 Performance Standard .......................................................................................... 205
6.3 Learning Outcomes .............................................................................................. 205
6.3.1 List of Learning Outcomes ............................................................................... 205
6.3.2 Learning Outcome No1: Budget for the Human Resource function activities. 206
6.3.3 Learning Outcome No 2: Align operations to financial regulations ................ 215
6.3.4 Learning Outcome No3: Maintain financial records ....................................... 224
CHAPTER 7: UNDERTAKE BUSINESS COMMUNICATION ................................... 239
7.1 Introduction .......................................................................................................... 239
7.2 Performance Standard .......................................................................................... 239
7.3 Learning Outcomes .............................................................................................. 239
7.3.1 List of Learning Outcomes ............................................................................... 239
7.3.2 Learning Outcome No 1: Handle correspondences at the workplace .............. 240
7.3.3 Learning Outcome No2: Maintain human resource records ............................ 246
7.3.4 Learning Outcome No 3: Align response time to service charter ................... 252
7.3.5 Learning Outcome, No 4: Safeguard confidentiality of information .............. 257
7.3.6 Learning Outcome No 5: Manage communication on social media platforms265
7.3.7 Learning Outcome No6: Manage meetings at the workplace ......................... 274
7.3.8 Learning Outcome No7: Write work place reporting ...................................... 282

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CHAPTER 8: MANAGE EMPLOYEE RELATIONS .................................................... 290
8.1 Introduction .......................................................................................................... 290
8.2 Performance Standard .......................................................................................... 290
8.3 Learning Outcomes .............................................................................................. 290
8.3.1 List of Learning Outcomes ............................................................................... 290
8.3.2 Learning Outcome No 1: Identifying the nature and importance of employee
relations ..................................................................................................................... 291
8.3.3 Learning Outcome No 2: Managing Collective Bargaining (CB) ................... 298
8.3.4 Learning Outcome No 3: Carry out career progression in line with career
guidelines ................................................................................................................... 308
8.3.5 Learning Outcome No 4: Engage trade unions in negotiations ........................ 313
8.3.6 Learning Outcome No 5: Enforce compliance with stipulated Occupational Health
and Safety (OHS) standards ...................................................................................... 321
8.3.7 Learning Outcome No 6: Initiate employee grievances and disputes resolution
mechanism ................................................................................................................. 332
8.3.8 Learning Outcome No 7: Coordinate employees’ welfare programme ........... 340
CHAPTER 9: MANAGE EMPLOYEE REWARDS ....................................................... 347
9.1 Introduction .......................................................................................................... 347
9.2 Performance Standard .......................................................................................... 347
9.3 Learning Outcomes ............................................................................................ 347
9.3.1 List of Learning Outcomes ............................................................................... 347
9.3.2 Learning Outcome No1: Process employee remuneration .............................. 348
9.3.3 Learning Outcome No2: Carry out job evaluation ........................................... 356
9.3.4 Learning Outcome No 3: Administer wages and salary of employees ............ 362
9.3.5 Learning Outcome No 4: Manage insurance covers and claims ...................... 369
9.3.6 Learning Outcome No 5: Undertake payroll audits.......................................... 376
CHAPTER 10: COORDINATE ORGANIZATIONAL DEVELOPMENT .................... 384
10.1 Introduction ........................................................................................................ 384
10.2 Performance Standard ........................................................................................ 384
10.3 Learning Outcomes ............................................................................................ 384
10.3.1 List of Learning Outcomes ............................................................................. 384
10.3.2 Learning Outcome No1: Reviewing existing standards ................................ 385
10.3.3 Learning Outcome No 2: Review organizational structure ............................ 393
10.3.4 Learning Outcome No 3: Monitor changing trends in the market place ........ 405
10.3.5 Learning Outcome No 4: Identify and implement productivity improvement
methods ...................................................................................................................... 410
10.3.6 Learning Outcome No 5: Facilitate change management at the workplace ... 415
10.3.7 Learning Outcome No 6: Build a high-performance culture .......................... 422
10.3.8 Learning Outcome No7: Develop a knowledge management system ............ 429
CHAPTER 11: ENFORCE COMPLIANCE WITH LEGISLATIONS ........................... 434
11.1 Introduction ........................................................................................................ 434
11.2 Performance Standard ........................................................................................ 434
11.3 Learning Outcomes ............................................................................................ 434
11.3.1 List of Outcomes ............................................................................................ 434

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 11.3.2 Learning Outcome No 1: Guide on enabling and related legislation ............. 435
11.3.3 Learning Outcome No 2: Initiate development of compliance strategies ..... 442
11.3.4 Learning Outcome No 3: Provide strategic advice on compliance matters ... 449
11.3.5 Learning Outcome No 4: Customize relevant legislations ............................ 454
11.3.6 Learning Outcome No 5: Align operations to comply with the legal requirements
................................................................................................................................... 460
CHAPTER 12: MANAGE HUMAN RESOURCE INFORMATION SYSTEM (HRIS) 465
12.1 Introduction ........................................................................................................ 465
12.2 Performance Standard ........................................................................................ 465
12.3 Learning Outcomes ............................................................................................ 465
12.3.1 List of Learning Outcomes ............................................................................. 465
12.3.2 Learning Outcome No1: Creating a Human Resource database .................... 466
12.3.3 Learning Outcome No2: Automate the Human Resource processes ............. 472
12.3.4 Learning Outcome No3: Train employees on self-service information systems477
12.3.5 Learning Outcome No4: Maintain the Human Resource Information Systems
(HRIS) ....................................................................................................................... 484
12.3.6 Learning Outcome No5: Review system features .......................................... 496
CHAPTER 13. UNDERTAKE EMPLOYEE SEPARATION ......................................... 503
13.1 Introduction ........................................................................................................ 503
13.2 Performance Standard ........................................................................................ 503
13.3 Learning Outcomes ............................................................................................ 503
13.3.1 List of Learning Outcomes ............................................................................. 503
13.3.2 Learning Outcome No1: Identify employees exiting the service ................... 504
13.3.3 Learning Outcome No2: Processing employees benefits and claims ............. 512
13.3.4 Learning Outcome No3: Conduct exit interviews ......................................... 518

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 LIST OF FIGURES
Figure 1: Maslow hierarchy of needs from Quora ................................................................... 11
Figure 2: Herzberg two factor theory from agohj.com ............................................................ 12
Figure 3: Vroom expectancy theory from Fagile-mercurial.com ............................................ 13
Figure 4: BF skinner reinforcement theory from agok.com .................................................... 13
Figure 5: bad eating habits from verywellmind.com ............................................................... 72
Figure 6: Yoga from Shutterstock............................................................................................ 73
Figure 7: healthy food from reg styles.com ............................................................................. 73
Figure 8: Stress management from Qminder,com ................................................................... 74
Figure 9 evolution of human resource management from hrm.com ........................................ 88
Figure 10: Balanced score card from max--pedia .................................................................. 114
Figure 11: kaizen from techtarget .......................................................................................... 115
Figure 12: TNA framework from efinance.com .................................................................... 151
Figure 13: TNA from edu.com ............................................................................................. 151
Figure 13: TNA from edu.com ............................................................................................. 153
Figure 14: budget cycle from efinancemanagement.com ...................................................... 207
Figure 15: budget from Fmarchforsciencemobile.org ........................................................... 212
Figure 16: Policy cycle from geopolicy-science-and-the-policy-cycle ................................. 220
Figure 17 monitoring, evaluation from Resources/Publication Documents .......................... 221
Figure 18: General journal from accountsknoledge.com ....................................................... 231
Figure 19: cash accounts from accountsknowledge.com ....................................................... 232
Figure 20: Furniture account from accounts knowledge. Com.............................................. 232
Figure 21: Owners equity accounts from accountsknowledge.com ...................................... 232
Figure 22: Accounts receivable from accountsknowledge.com ............................................ 233
Figure 23: sales accounts from accounts knwledge.com ....................................................... 233
Figure 24 purchase accounts from accountsknowledgeacconts.com ..................................... 233
Figure 25: note payable from acconts.com ............................................................................ 234
Figure 26: Office equipment account from acc.kno.com ...................................................... 234
Figure 27: accounts payable from accounts knowledge. Com .............................................. 234
Figure 28 sales return accounts from accounts knowledge. Com .......................................... 235
Figure 29: Minutes format from pinterest .............................................................................. 279
Figure 30: Report format from Pinterest ................................................................................ 287
Figure 31: Intrinsic and extrinsic rewards ............................................................................. 350
Figure 32: Maslow pyramid ................................................................................................... 351
Figure 33 insurance covers from iedunote.com/types-of-insurance ...................................... 370
Figure 34: Audit checklist fromswetc.com ............................................................................ 378
Figure 35 Functional organization flow from nulab.com ...................................................... 395
Figure 36: Divisional structures from smartdraw.llc ............................................................. 396
Figure 37: matrix organizational structure. from the investorbook ....................................... 398
Figure 38: components of database from aspoi.com ............................................................. 467
Figure 39: Employee turnover from adoptstaging.blob.com ................................................. 508

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 LIST OF TABLES
Table 1: Summary of Common Units of Competencies ............................................................ 3
Table 2: Summary of Core Units of Competencies ................................................................... 3
Table 3: Characteristics of groups and teams .......................................................................... 50
Table 4: Advantages and disadvantages of groups and teams ................................................. 53
Table 5: Monitoring and evaluation table .............................................................................. 138
Table 6: Job rotation .............................................................................................................. 139
Table 7: Single cash book ...................................................................................................... 226
Table 8: Two-column cash book............................................................................................ 227
Table 9: Three-column cash book: ........................................................................................ 229
Table 10: Service charter table of contents ............................................................................ 254

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 ACRONYMS

BC Basic Competency
CAD Computer Aided Design
CBET Competency Based Education and Training
CC Common Competency
CDACC Curriculum Development, Assessment and Certification Council
CR Core Competency
OS Occupational Standards
OSH Occupational Safety and Health
OSHA Occupational, Health and Safety Act
PPE Personal Protective Equipment
SOPs Standard Operating Procedure
SSAC Sector Skill Advisory Committee
TVET Technical and Vocational Education and Training
AAR After Action Review.
AR Annual Review.
ATS Applicant Tracking System.
BU Bargaining Unit.
C&B Compensation and Benefits.
CTO Compensatory Time Off
TNA Training Need Assessment
HR Human Resource

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 CHAPTER 1: INTRODUCTION

1.1 Background Information

This learning guide has been developed in line with the functions of TVET CDACC as
stipulated in Article 45 (1a) of the Technical and Vocational Education and Training (TVET)
Act No. 29 of 2013 and the Sessional Paper No. 2 of 2015 that embraces Competency Based
Education and Training (CBET) system. It is, therefore, the sole intent of this document to
provide guidelines for a competency-based Human Resource Management curriculum for level
6.

Human Resource Management Level 6 qualification consists of competencies that an

individual must achieve to enable him/her Initiate employee resourcing employee resourcing,
Coordinate performance management, coordinate learning and development, prepare human
resource budgets, undertake business communication, manage employee relations, manage
employee rewards, coordinate organizational development, enforce compliance with
legislations, manage human resource information system (HRIS) and undertake employee
separation

This learning guide consists of interactive learning activities, content, further reading, self
assessment, relevant and related references that enhance implemention of Human Resource
Management Level 6 qualification. It enables the trainee to acquire the competencies that
enables him/her to undertake the various processes in the sector. The Guide further provides
illustrations, web links, case studies, examples and resources on how to implement all the
learning outcomes/elements described in the Curriculum and Occupational Standards with a
particular focus on the trainee.

1.2 The Purpose of Developing the Learning Guide

Human Resource Management Level 6 curriculum development process was initiated using
the DACUM methodology where jobs/occupations were identified. Further, job analysis charts
and occupational standards were generated in collabouration with the industry players under
the guidance of TVET CDACC (Curriculum Development Assessment and Certification
Council). The result of the process was Occupational Standard (OS) and Curriculum. The
Curriculum was further broken down into units of learning. To effectively implement the
Occupational standard and Curriculum, learning guides are required to provide training
content, guide the learners and trainers on the learning process aimed at imparting the relevant
knowledge, requisite skills and the right work behaviour/attitude to the industry. Learning
guides are part of the training materials.

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1.3 Layout of the Trainee Guide
The learning guide is organized as per chapters. Chapter one presents the background
information and purpose of developing the trainee guide. Each of the units of learning/unit of
competency is presented as a chapter on its own. Each chapter presents the introduction of the
unit of learning/unit of competency, performance standard and list of the learning
outcome/elements in the occupational standards.

1.4 Learning Activities

For each learning outcome, the learning activities are presented by covering the performance
criteria statements and trainee’s demonstration of knowledge in relation to the range in the
occupational standard and content in the curriculum.

1.5 Information Sheet

The information sheet is a section under each learning outcome that provides the subject matter
in relation to definition of key terms, methods, processes/procedures/guidelines, content,
illustrations (photographs, pictures, video, charts, plans, digital content, and simulation) and
case studies.

1.6 Self-Assessment
Self-assessment is linked to the performance criteria, required knowledge, skills and the range
as stated in the Occupational Standards. This section further provides questions and
assignments in which trainees demonstrate that they have acquired the required competences
and an opportunity to reflect on what they have acquired. It is expected that the trainer keeps a
record of their plans, their progress and the problems they encountered which will go in
trainee’s portfolio. A portfolio assessment consists of a selection of evidence that meets the
pre-defined requirements of complexity, authenticity and reliability. The portfolio starts at the
beginning of the training and will be the evidence for the development and acquisition of the
competence (summative and formative) by the trainee. It is important to note that Portfolio
assessment is highly emphasized in the learning guide.

Finally, the guide presents tools, equipment, supplies and materials for each learning outcome
as guided by the performance criteria in the occupational standards and content in the
curriculum. References, relevant links and addendums are provided for further study. The units
of competency comprising this qualification include the following common and core units of
learning:

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1.7 Core Units of Learning
Summary of Core Units of Competencies
Table 1: Summary of Common Units of Competencies

Unit of Learning Code Unit of Learning Title Duration Credit

(Hours) Factors
Unit Code Unit Title

HRM/OS/BUS/CC/02/6 Manage oragnization

behaviour 70 7

HRM/OS/BUS/CC/03/6 Demonstrate management 70 7

of human resources

Table 2: Summary of Core Units of Competencies

Unit of Learning Code Unit of Learning Title Duration Credit
(Hours) Factors
CODE NO. Name of unit of competency

HRM/OS/BUS/CC/04/6 Coordinate performance 100 10

management

HRM/OS/BUS/CC/05/6 Coordinate learning and

development 110 11

HRM/OS/BUS/CC/06/6 Prepare human resource budgets 110 11

HRM/OS/BUS/CC/07/6 Undertake business communication 110 11

HRM/OS/BUS/CC/08/6 Manage employee relations 110 11

HRM/OS/BUS/CC/09/6 Manage employee rewards 110 11

HRM/OS/BUS/CC/010/6 Coordinate organizational 110 11

development

HRM/OS/BUS/CC/011/6 Enforce compliance with legislations

HRM/OS/BUS/CC/012/6 Manage Human Resource 180 18

Information System (HRIS)

HRM/OS/BUS/CC/013/6 Undertake employee separation 160 16

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 CHAPTER 2: MANAGE ORGANIZATIONAL BEHAVIOUR

2.1 Introduction
This unit specifies the competencies required to manage organizational behaviour. It involves
analyzing individual and group behaviour, evaluating different motivational theories and
motivational strategies, evaluating various leadership styles, facilitating change management,
managing conflict and negotiations, managing organization change and culture, managing
groups and teams, managing perceptions, personalities and emotions and managing values and
attitudes in the work place

2.2 Performance Standard

Analyzing individual and group behaviour, evaluating different motivational theories and
motivational strategies, evaluating various leadership styles, facilitating change management,
managing conflict and negotiations, managing organization change and culture, managing
groups and teams, managing perceptions, personalities and emotions and managing values and
attitudes in the work place as per the SOPs, per the work place procedures.

2.3 Learning Outcomes

2.3.1 List of Learning Outcomes
a) Analyse individual and group behaviour
b) Evaluate different motivational theories and motivational strategies
c) Evaluate various leadership styles
d) Manage conflict and negotiations at work place
e) Manage organization change and culture
f) Manage groups and teams at the workplace
g) Manage perceptions, personalities and emotions in the work place
h) Manage values and attitudes in the work place
i) Managing work place Stress

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2.3.2 Learning Outcome No 1: Analyse individual and group behaviour
2.3.2.1 Learning activities

Learning Outcome No1: Analyse individual and group behaviour

Learning Activities Special

Instructions

1.1. Familiarization with organization behaviour Written questions

1.2. Identification of importance of organization behaviour Oral questions
1.3. Identification of Theories of organization behaviour Observation
1.4. Application Organization behaviour theories Projects

2.3.2.2 Information Sheet No: 2 /LO 1: Analyse individual and group behaviour

Introduction
This learning outcome covers familiarization with organization behaviour, identification of
importance of organization behaviour, Identification of Theories of organization behaviour and
application Organization behaviour theories are applied as per the work place procedures.

Definition of key terms

Organization behaviour: Refers to the study of human behaviour in organizational settings,
the interface between human behaviour and the organization, and the organization itself.

Organization behaviour theories: A theory is a contemplative and rational type of abstract or

generalizing thinking about a phenomenon, or the results of such thinking.

Content/Procedures/Methods/Illustrations

ORGANIZATION BEHAVIOUR
It is the basis of human resource management and development. The former is concept-oriented
whereas the latter is concerned with the technology of human development.

Elements of an organization behaviour

 People: People make up the internal and social systems of the organization. They
consist of individuals and groups. Groups are dynamic and they work in the
organization to achieve their objectives.
 Organization Structure: Structure defines the formal relationships of the people in
organizations.
 Technology: Technology such as machines and work processes provide the resources
with which people work and affect the tasks that they perform.

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Theories of organization behaviour
Human relations
This approach recognizes the fact that people are the central resource in any organization and
that they should be developed towards higher levels of competency, creativity, and fulfilment.
People thus contribute to the success of the organization. The human resources approach is also
called as the supportive approach in the sense that the manager’s role changes from control of
employee to active support of their growth and performance.

Productivity theory
Productivity which is the ratio of output to input is a measure of an organization’s effectiveness.
It also reveals the manager’s efficiency in optimizing resource utilization. The higher the
numerical value of this ratio, the greater the efficiency.

Contingency
The contingency approach (sometimes called the situational approach) is based on the premise
that methods or behaviours which work effectively in one situation fail in another. His strength
of the contingency approach lies in the fact it encourages analysis of each situation prior to
action while at the same time discourages the habitual practice of universal assumptions about
methods and people. The contingency approach is also more interdisciplinary, more system –
oriented and more research-oriented titan any other approach.

Servant leadership
The magnum opus of Robert Greenleaf, Servant Leadership is a recent theory of leadership
that argues that the most effective leaders are servants of their people. Servant leaders
get results for their organization through whole-hearted attention to their followers and
followers’ needs. Unlike many approaches to leadership, which offer suggestions on how top-
level leaders can influence and motivate those further down the hierarchy, servant leadership
puts its emphasis on collaboration, trust, empathy, and ethics. The leader should be a servant
first, leading from a desire to better serve others and not to attain more power. The assumption
is that if leaders focus on the needs and desires of followers, followers will reciprocate through
increased teamwork, deeper engagement, and better performance.

Human relation theory

The human relations theory of organizations has three main components. First, the theory
places an emphasis on the importance of the individual. A worker is not simply a cog in a
machine but an idiosyncratic individual who responds to his or her environment. Maximizing
the productivity of workers requires taking these individual characteristics into account.
Second, human relations theory takes into account the informal organizations in the workplace.
What is important to a worker and what influences her productivity level – may not be the
official organizational chart but her or his associations with other workers. Third, human
relations theory stresses the importance of participative management. Employees are more
likely to be happy and engaged at work if they have meaningful input into important workplace
decisions. Failure to solicit employee input leads to unhappy workers and diminished
workplace productivity, according to human relations theory.

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Decision theory: Decision making theory is a theory of how rational individuals should behave
under risk and uncertainty. It uses a set of axioms about how rational individuals behave which
has been widely challenged on both empirical and theoretical ground.

Importance of organization behaviour

 It builds a better relationship by achieving people, organizational and social objectives.
 It covers a wide array of human resources like behaviour, training and development,
change management, leadership, teams, etc.
 It brings coordination which is the essence of management.
 It improves the goodwill of the organization.
 It helps to achieve objectives quickly.
 They make optimum utilization of resources.
 It facilitates motivation.
 It leads to higher efficiency.
 It improves relations in the organization.
 It is multidisciplinary, in the sense that it applies different techniques, methods, and
theories to evaluate the performances.

Application Organization behaviour theories

The major areas where the special attention is required in regard to perceptual accuracy and
management and behavioural application of perception of utmost importance are followings:
 Employment Interview: A major input to find who is hired and who is rejected in any
organization is the employment interview. It’s fair to say that few people are hired
without an interview. But the evidence indicates that interviewers make perceptual
judgments that are often inaccurate.
 Selection of Employees: It is one of the areas, where managers need to be very careful.
Normally, employees are selected on the basis of selection tests, interviews and reviews
of the applicant’s background. There are various cases, where information is vague and
managers are subject to many of the perceptual problems where they make the selection
decisions.
 Performance Appraisal: Every organization has some system of performance
appraisal. It is generally done by superiors and sometimes by people at
different levels as in 360-degree performance appraisal.
 Delegation of Authority: In organizational set up delegating authority to do various
task is the way of life. But, a manager decision whether to delegate or whom to delegate
is many times affected by his perception of employees.
 Interpersonal Working Relationship: Organizations are intended to bring about
integrated behaviour. Therefore, managers in the organization need to know whether or
not members share similar or at least compatible perceptions
 Employee Loyalty: Another important judgment that managers make about employees
is whether or not they are loyal to the organization. Despite the general decline in
employees, especially those in the managerial ranks, openly disparage the firm

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Conclusion
This learning outcome covered familiarization with organization behaviour, importance of
organization behaviour, Identification of Theories of organization behaviour and application
Organization behaviour theories are applied as per the work place procedures.

Further Reading

Read more on group behaviour from Stead, L. F., Carroll, A. J., & Lancaster, T. (2017). Group
behaviour therapy programme for smoking cessation. Cochrane database of systematic
reviews, (3).

2.3.2.3 Self-Assessment

Written Assessment
1. The Hawthorne studies are of utmost significance as they form an honest and concerted
attempt to understand:
A. The human factor
B. Employee attitudes
C. The workers social situations
D. All of the above
2. The two dimensions of leadership which emerged from the Leader Behaviour Description
Questionnaire were ‘consideration’ and ‘________’.
A. Energizing
B. Initiating structure
C. Deliberate
D. Commanding
3. The philosophy that guides an organization’s policies towards its employees and customers
is an important part of
A. Management strategy
B. Organization behaviour
C. Organizational culture
D. Organization development
4. Identify the steps involved in achieving improvement in communication within the
organization.
A. Sending messages, use of multiple channels, Promoting inter-group communication
B. Simple messages, use of multiple channels, promoting inter-group interaction
C. Simple messages, use of multiple channels, promoting inter-group communication
D. Simple messages, use of multiple methods, promoting inter-group communication
5. What do you understand by the term organization behaviour?

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6. Organization is the basis of human resource management and development. Highlight 3
elements of organization behaviour.
7. Every organization in this century take organization as a very critical aspect for the success
of the company. Discuss 4 theories of organization behaviour.

Case study
The BBC has been undergoing significant change in the past few years leading to an
independent review in 2016 which found that there were some “serious failings in the BBC’s
culture and its systems of communication, management and investigation” (Smith, 2016:32) at
the time, with concerns around bullying and harassment or staff complaints not being listened
to. Aside from this there have also been criticisms about the pay/gender gap between staff. The
organization had a new Director General in 2015 who has spearheaded, via the HR department,
large scale re- organization, leading to the development of a culture which now sees people
“coming to work wanting to do the best they can” (Hughes-D’Aeth, 2017). Read the article in
Appendices 1 and 2 and then carry out your own research on the subject and on the BBC, to
answer the following questions.
Questions;
8. Analyse the influence of culture, politics and power on the behaviour of others in an
organizational context
9. Evaluate how to motivate individuals and teams to achieve a goal

2.3.2.4 Tools, Equipment, Supplies and Materials

 Regulations, guidelines and strategic plan
 Organization structure, functions, policies and procedures
 Computers and computer software
 Computer servers
 Internet and intranet connectivity

2.3.2.5 References

Amsa, P. (1986). Organizational culture and work group behaviour: an empirical study. Journal
of Management Studies, 23(3), 347-362.

Kocher, M. G., & Sutter, M. (2005). The decision maker matters: Individual versus group
behaviour in experimental beauty‐contest games. The Economic Journal, 115(500),
200-223.

Thornton, A., & Clutton-Brock, T. (2011). Social learning and the development of individual
and group behaviour in mammal societies. Philosophical Transactions of the Royal
Society B: Biological Sciences, 366(1567), 978-987.

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2.3.3 Learning Outcome No 2: Evaluate different motivational theories
2.3.3.1 Learning activities

Learning Outcome No. 2: Evaluate different motivational theories

Learning Activities Special

Instructions

2.1. Familiarization of with motivation Written questions

2.2. Identification of Motivation theories
2.3. Identification Types of motivation Oral questions
2.4. Familiarization of Process of motivation Observation
2.5. Highlighting of advantages and disadvantages of motivation

2.3.3.2 Information Sheet No: 2 /LO2: Evaluate different motivational theories

Introduction
This learning outcome covers familiarization of with motivation, identification of motivation
theories, identification types of motivation, familiarization of process of motivation and
advantages and disadvantages of motivation.

Definition of key terms

Motivation process: These are process that explain why and how human behaviour is
activated. They are tasked with discovering what drives individual to work towards goal or
outcome. It describes the activation of goal oriented behaviour in humans.

Motivation: It is defined as the reasons why individuals are doing something or the level of
desire someone has to do something. It is an important factor which encourages persons to give
their best performance and help in achieving goals.

Content/Procedures/Methods/Illustrations

MOTIVATION
It is a psychological phenomenon which generates within an individual. It is an inner feeling
which energizes a person to work more. It involves emotions and desires of a person.

Motivation theories
Maslow’s hierarchy of need. It is the most well-known theory of motivation. It is based on
human needs. Drawing from Abraham Maslow's clinical experience, he classified human needs
in a hierarchy manner. The needs start from the lowest basic need and keeps moving up as the
lower level need is fulfilled.

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These needs include:
Psychological needs: These needs are basic to human life and hence include good, shelter,
clothing, air and necessities of life. They relate to the survival and maintenance of human life.
Safety needs: These are needs that find expression in such desires as economic security and
protection from physical dangers. They may include need for more money.
Social needs: Man is a social being. Man need for association, affiliation and friendship. It is
this socializing and belongingness why individuals prefer to work to groups and especially
older go to work.
Esteem needs: These are needs for self-esteem and recognition. They include needs which
indicate self-confidence, achievement, competence, knowledge and independence. The
fulfilment of esteem needs to self-confidence, strength, and capability of being useful.
Self-actualization needs: It is the highest-level need to which a human being can aspire. This
is a fulfilment need. In effect, self-actualization is the person’s motivation to transform
perception of self into reality.

Figure 1: Maslow hierarchy of needs from Quora

a) Herzberg two factor theory

Hygiene factors that are essential for existence of motivation at workplace. They are extrinsic
motivators which include company policies, pay, fringe benefits, working conditions and job
security.

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Figure 2: Herzberg two factor theory from agohj.com

b) Vrooms expectancy
It was founded by Victor Vroom. It gives explanation on Motivation in his expectancy theory.
It is a cognitive process of motivation. The theory was founded on the basic notation that people
will be motivated to exert a high level of effort when they believe there are relationships
between the effort they put forth, the performance they achieve and rewards they receive. The
three factors in the expectancy theory of motivation are:
 Valence: It is the value or strength one places on a particular outcome or reward.
 Expectancy: It relates efforts to performance.
 Instrumentality: It is the believe that performance is related to rewards.
The Vrooms Motivation can be expressed in form of an equation; Motivation=to valence *
expectancy* instrumentality

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Figure 3: Vroom expectancy theory from Fagile-mercurial.com

c) BF Skinners reinforcement theory

This theory was proposed by Skinners and associates. It states that individual behaviour is a
function of its consequences. It is based on the law of effect, that is, individuals’ behaviour
with positive impacts tends to be repeated but individual’s behaviour with negative impacts
tends not to be repeated. This theory sights the internal state of individual. That is inner feelings
and drives of individuals are ignored by Skinners. According to Skinners the external
environment of the organization must be designed effectively and positively to motivate the
employees.

Figure 4: BF skinner reinforcement theory from agok.com

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The following methods are used in controlling the behaviour of employees.
 Positive reinforcements: It involves giving a positive response when an individual
shows positive and desired behaviour.
 Negative reinforcements: It involves rewarding an employee by removing negative or
undesirable consequence.
 Punishment: It involves removing positive consequence so as to lower the profitability
of repeating undesirable behaviour in future.
 Extinction: It involves lowering the profitability of undesired behaviour by removing
rewards for such kind of behaviour.
Types of motivation
 Positive motivation: It is also called incentive motivation and is based on reward. The
employees are given in rewards for achieving the desired goal. The reward maybe
informs of promotion or recognition of work.
 Negative motivation: It is based on fear or force. It causes the employee not to act
accordingly and hence may lead to punishment with demotions or layoff. Force or fear
acts as push mechanism.
 Achievement Motivation: It is the desire to pursue and achieve objectives.
 Affiliation Motivation: It is a desire to relate to people socially. Individuals with this
motivation perform better.
 Competence Motivation: It is an urge to be good at something, permitting the in person
to perform effectively.
 Power Motivation: It is the drive to influence people and change situation.
 Attitude Motivation: It refers to how people think and feel about the future and reactions
to the past.
 Incentive Motivation: It involves rewarding employees for the work they have done.
 Fear Motivation: It forces a person to act against will.

Process of motivation
The process of motivation includes five steps:
i. Identify unsatisfied need and motives: Unsatisfied needs can be achieved by external
and internal factors. Internal factors may include: hunger and thirst. External factors:
Advertisements and window display
ii. Tension: Unsatisfied needs create tension to the individual. Tension can be physical,
psychological, and sociological. In this situation, people try to develop activities that
will satisfy their needs.
iii. Action to satisfy needs and motives: A person may engage in activities to satisfy needs
and motives for tension reduction.
iv. Goal accomplishment: Action to satisfy needs and motives accomplish objectives. It
can be through rewards and punishment. When actions are developed as per the tension
some people are rewarded while others are punished.
v. Feedback: It is to provide information for revision, improvement or modification of
needs as needed. Depending on how the goal is achieved their needs and motives is
modified.

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Advantages of Motivation
 Better productivity
 Improved industrial relations
 Better communication and team work
 Improved quality of service and product
 Lower level of absenteeism
 Less turnover

Disadvantages of Motivation
 Employees focus greatly on incentives
 It's an expensive exercise
 Threats of strike and demonstration
 Employees may by overconfident
 Motivated employees do not take an interest of the organization
 No cooperation from unmotivated employees

Conclusion
This learning outcome covered familiarization of with motivation, identification of Motivation
theories, identification types of motivation, familiarization of Process of motivation and
advantages and disadvantages of motivation.

Further Reading

Read more on theory x and y from Mc Clelland theory

2.3.3.3 Self-Assessment

Written Assessment
1. According to Abraham Maslow's motivation theory needs are arranged in a hierarchical
order from the lowest to the highest. From the statements below which is classified as the
lowest level of needs.
A. Esteem needs
B. Safety needs
C. Physiological needs
D. Self-actualization needs

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2. Tom is hungry and this inner force is making him search for the type of food he wants to
eat. He decides to buy bread which will satisfy his hunger. The inner force which is
compelling him to search for food is known as
A. Motive
B. Perception
C. Feeling
D. Motion
3. According to the two-factor theory, there are various hygiene factors that motivates
employees. From the choices which one is not
A. Pay
B. Responsibility
C. Benefits
D. Co- workers
4. Motivation depends upon the strength of a tendency to act in a certain way which in turn
depends on the strength of an expectation that the act will be followed by a given outcome
and on the attractiveness of that outcome of that individual. Which theory asserts this
theory?
A. Maslow's hierarchy of needs
B. Herzberg theory
C. David McClelland’s theory
D. Vroom Expectancy theory
5. Apart from incentives there are other ways in which the management can motivate their
employees. List 3.
6. Motivation is an inner feeling which energizes a person to work more. What are the benefits
that an organization may incur for motivating its employee?
7. Motivation often discussed if it is psychological concept or not. Discuss.

Practical Question
The candidate is required to:
1. Prepare a motivation exercise
2. Give a report

Resource
1. Books on Motivation guidelines
2. Company operations, procedures and standards
3. Writing materials and pens

2.3.3.4 Tools, Equipment, Supplies and Materials

 Management books
 Internet
 Journals
 Books on Motivation guidelines
 Company operations, procedures and standards

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  Writing materials and pens

2.3.3.5 Reference

Robert L. Mathis, John H. Jackson (2012). Human Resource Management: Essential

Perspectives

Saha, Agniva (2018). The Impact of Human Resource Management on Organizational

Performance.

Fernando Martı´n-Alca´zar, Pedro M. Romero-Fernandez and Gonzalo Sa´nchez-Gardey

(2005). Strategic human resource management: integrating the universalistic,
contingent, configurational and contextual perspectives.

©TVET CDACC 2020 17

2.3.4 Learning outcome No 3: Evaluate various leadership styles
2.3.4.1 Learning Activities
Learning Outcome No. 3: Evaluate various leadership styles

Learning Activities Special

Instructions

3.1. Definition of leadership Group discussions

3.2. Identified of types of leadership styles Class presentations
3.3. Identification of characteristics of good leaders Assignments
3.4. Highlighting of leadership skills.
3.5. Underlining of leadership issues in contemporary organization

2.3.4.2 Information Sheet No: 2 /LO 3: Evaluate various leadership styles

Introduction
This learning outcome covers Definition of leadership, identified of types of leadership styles,
identification of characteristics of good leaders, highlighting of leadership skills and
underlining of leadership issues in contemporary organization.

Definition of key terms

Leadership: It's the process of influencing others to direct their efforts in achieving a particular
objectives or goal. It is the act of making things happen rather than lettings things happen. It is
a social influence process in which the leader seeks voluntary participation of subordinates in
an effort to reach organizational objectives.

Leadership style: A leadership style is a leader's method of providing direction, implementing

plans, and motivating people.

Content/Procedures/Methods/Illustrations

LEADERSHIP
Leadership is the art or process of influencing people so that they will strive willingly and
enthusiastically towards the achievement of group goals. This concept can be enlarged to imply
not only willingness to work but also willingness to work with zeal and confidence. Zeal
reflects ardor, earnestness and intensity in the execution of work, confidence reflects
experience and technical ability.
To lead is to guide, conduct, direct and precede. Leaders act to help a group achieve objectives
with the maximum application of its capabilities. They do not stand behind a group to push and
to prod, they place themselves before the group as they facilitate progress and inspire the group
to accomplish organizational goals.

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Leadership can be described as an art of managing. Leadership on the other hand is more than
legal powers [authority] it is based on the individual ability rather than on bestowed powers
and rights. Whereas authority derives from powers entrusted in the office. Leadership does not
need rules and regulations to back it. It derives from personal ability to influence others.
Leadership is thus a skill of a manager which enables him\her to persuade subordinates to apply
themselves with zeal and confidence.

Types of leadership styles

a) Autocratic leadership: This leadership style is the inverse of democratic leadership. An
autocratic leader is one who is conscious of his position and has little trust or faith in the
subordinates, he feels that pay is just a reward for his work and it is only the reward which
can motivate them. The leader gives orders and insists the followers to carry out without
question. Autocratic leadership is useful in:
 Situation of emergency
 In case where homogeneous work force is not involved
 Where the leader is wise, just and has considerable understanding of his followers
b) Democratic leadership/ participative leadership: A democratic leader allows for decision
making to be shared by the leader and group. Criticism and praises are objectively given
and a feeling of responsibility is developed within the group. This form of leadership is
claimed to be the earliest among all other leadership styles. The managers discuss with the
subordinates before he issues general or broad orders from which subordinates feel free to
act on. The superior allows the subordinates opportunity to use their initiative and make
contributions. The leaders also offer supports to the subordinates in accomplishing tasks.
c) Laissez-faire leadership: In these types of leadership, leaders attempt to pass the
responsibility of decision making to the group. The group is loosely structured, as the leader
has no confidence in his leadership ability. Decision making under this leadership is
performed by whoever that is willing to accept it. Decision making is also very slow and
there can be great deal of buck passing. Laissez faire translates from "let them do".
d) Strategic leadership: This is a practice in which executives, using different styles of
management develop a vision for their organization that enables it adapt to the changing
economic and technological situations. Its main objective is to streamline processes, boost
productivity, promote innovation and create an environment that inspires employees to be
productive, independent and to push forward their own ideas. Leaders may use rewards or
incentives to encourage and motivate their employees.
e) Transformational leadership: This type of leadership is always transforming and improving
upon the company's objectives. A leader works with teams to identify need change, creating
a vision to inspire, and executing of change with the group members. In this leadership,
leaders influence followers and in spy them to perform beyond their perceived capabilities.
It serves to enhance to motivation, morale and job performance. It leads to positive change
to those who follow.

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f) Transactional leadership: It focuses on supervision, organization or performance. This style
involves a team agreeing to obey their leader when they accept a job. Transaction usually
involves the organization paying team members in return for their efforts and obedience on
a short-term task. It promotes compliance by subordinates through punishment and
rewards. This type of leadership is best in carrying out organizational projects.
g) Bureaucratic leadership: In these leadership style leaders follow rules and regulations to
ensure that their people follow procedures precisely. This style is appropriate for work
involving serious risks such as toxic substances, dangerous heights or working with
machinery. It is also effective in managing employees who perform routine tasks.

Characteristics of good leaders

Good leaders should portray the following qualities:
 Ability to inspire others
 Ability to understand human behaviour
 Verbal assertiveness
 Willingness to communicate
 Dedication to the goals of the organization
 Ability to inspire through example
 Willingness to take risk
 Willingness to assume full responsibility for the group
 Ability to tolerate criticisms

Leadership skills.
 Decisiveness: Effective leaders are those who can make decisions on their own.
 Integrity: Having and standing by a set of strong values. It is usually the truthfulness
and honesty.
 Relationship building: It is the ability to build and maintain a strong and collaborative
team, working to towards the same goal.
 Problem solving: A leader requires problem solving skills in order to make quick
decision and resolve issues in case there are problems in the organization.
 Communication skills: It is one of the most important skill of a leader. A should have
the ability to communicate effectively through verbal and written communication.
 Confidence: Effective leaders should be confident enough to ensure others follow their
commands.
 Delegations: A leader should be able to empower his followers and delegate duties to
them accordingly.

Contemporary issues in Leadership

 Quick decision making
 Recruiting and retaining quality workers
 Dealing with change and uncertainty
 Changing group dynamics

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  Leading by example
 Globalization
 Ethical behaviour

Conclusion
This learning outcome covered definition of leadership, identified of types of leadership styles,
identification of characteristics of good leaders, highlighting of leadership skills and
underlining of leadership issues in contemporary organization.

Further Reading

Read on the importance of leadership to the organization and Advantage and disadvantages of
various leadership styles

2.3.4.3 Assessment

Written Assessment
1. A business enterprise needs an effective leader for it to succeed. From the following
statements which one portrays the nature of leadership at it should be for continued success
in a business enterprise.
A. Leaders focus on budgeting, aligning people with a shared vision and solving
problems.
B. Leaders focus on setting direction, align people with a shared vision and motivating
people.
C. Leaders focus on motivating people, planning, organizing and staffing.
D. Leaders focus on authority and use of power
2. The various types of leadership styles have different characteristics. Which of the following
is a characteristic of transactional leadership?
A. Believe success arises from leaders and staff working together
B. Seeks to involve in decision making process
C. Seeks to ensure staff understand issues facing the organisation
D. Takes the view that rewards and punishment motivate employee.
3. The definition between a leader and a manager differ. Which of the following is a
conventional distinction between managers and leaders?
A. Managers maintain while leaders develop
B. Managers inspire while leader’s control
C. Managers innovate while leaders administer
D. Managers originate while leaders imitate

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4. There are various skills that leaders must have in order to lead effectively. One of them is
communication skill. These skills include verbal and nonverbal communication. Which is
a non-verbal type of communication.
A. Signs and gestures
B. Negotiation and problem solving
C. Decision making
D. Written letters
5. In most organizations’ managers are often regarded as the leaders of the institution. They
have various duties and responsibilities. State
6. Leadership is an integral component in today's world. Explain the need for leadership
7. There are various principles in the concept of leadership. What are the principles?

Practical Question
The candidate is required to:
1. Prepare an organizational structure
2. Prepare an organization chart
Resources
1. Writing materials and pens.
2. Standard operations and procedures
3. Management policies and practices

2.3.4.4 Tools, Equipment, Supplies and Materials

 Leadership and leadership theories books
 Internet
 Journals

2.3.4.5 References

Amsa, P. (1986). Organizational culture and work group behaviour: an empirical study. Journal
of Management Studies, 23(3), 347-362.

Kocher, M. G., & Sutter, M. (2005). The decision maker matters: Individual versus group
behaviour in experimental beauty‐contest games. The Economic Journal, 115(500),
200-223.

Thornton, A., & Clutton-Brock, T. (2011). Social learning and the development of individual
and group behaviour in mammal societies. Philosophical Transactions of the Royal
Society B: Biological Sciences, 366(1567), 978-987.

©TVET CDACC 2020 22

2.3.5 Learning outcome No 4: Manage conflict and negotiations at work place
2.3.5.1 Learning activities

Learning Outcome No. 4: Manage conflict and negotiations at work place

Learning Activities Special

Instructions

4.1. Familiarization with conflict and negotiations Group discussions

4.2. Identification of causes of conflicts in an organization Class presentations
4.3. Definition of conflict management Assignments
4.4. Application of Conflict management methods
4.5. Highlighting of advantages and disadvantages of benefits of
conflict management

2.3.5.2 Information Sheet No: 2 /LO4: Manage conflict and negotiations at work place

Introduction
This learning outcome covers conflict and negotiations, causes of conflicts, conflict
management, conflict management methods, advantages and disadvantages of conflict
management.

Definition of key terms

Conflict: It is a process in which people disagree over significant issues, thereby creating
friction.
Negotiations: These are the methods in which people settle disputes

Conflict management: This is the process of limiting the negative aspects of conflict while
increasing the positive aspects of conflict.

Content/Procedures/Methods/Illustrations

CAUSES OF CONFLICTS IN AN ORGANIZATION

 Task Interdependencies: This is the degree to which organizational members must
collaborate with each other in order to accomplish assignments. The more
interdependent tasks are, the more opportunity and reasons organizational members
will have to engage in conflict. Increased interaction leads to increased opportunities
for affective and cognitive conflict.

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  Personality clashes: The personality mix within a team can be upset when a new
member of staff joins or if two colleagues suddenly fall out. Individuals may also
respond to difficult or challenging situations in an unhelpful or unproductive way.
 Unrealistic needs and expectations: Conflict at work can often be caused when
employers ignore the needs of employees or set unrealistic expectations. For example,
arranging hours that make it difficult for employees to carry out childcare
responsibilities.
 Business values: Most people have very clear ideas about what they think is fair, and
your organization’s procedures and policies must reflect this. For example, giving
someone a fair hearing or explaining the reasoning behind a decision.
 Unresolved workplace issues: This is in a case where an employee might ask to be
moved to another team because of their manger’s ‘aggressive’ leadership style.
However, the employee may have other reasons for example; they may blame their
manager for lack of training or career progression.
 Increase in workload: This is when employees start to feel like they are being pushed
too hard. Increased workload leads to conflict since employees collide with each trying
to beat deadlines.
 Conflict management: This is the process of limiting the negative aspects of conflict
while increasing the positive aspects of conflict.

Conflict management methods

Negotiations: This is a process by which compromise or agreement is reached while avoiding
argument and dispute. The process aims at reaching an agreement and not winning.

Stages of Negotiation
i. Preparation: This stage involves deciding when and where the meeting will take place to
discuss the problem and who will attend. This stage involves ensuring all the pertinent facts
of the situation are known in order to clarify your own position. If it is in an organization,
the rules of the organization should be known. The policies of the organization can help in
the preparation of the negotiation. Proper preparation helps to avoid further conflict and
unnecessarily wasting time during the meeting.
ii. Discussion: This is the stage where the individuals get to understand the situation. The
individuals should portray questioning, listening and clarifying skills. Taking notes during
discussion helps in clarification. Each individual should have an equal opportunity to
present their case and active listening is highly encouraged.
iii. Clarifying Goals: This is the stage where the goals that hope to be achieved are clarified.
The goals should be listed in order of priority. This is guidance throughout the problem-
solving process.
iv. Negotiate Towards a Win-Win Outcome: A ‘win-win’ outcome is where both sides feel
they have gained something positive through the process of negotiation and both sides feel
their point of view has been taken into consideration. It is usually the best result although
this may not always be possible, through negotiation, it should be the ultimate goal.
Suggestions of alternative strategies and compromises need to be considered at this point.

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 Compromises are often positive alternatives which can often achieve greater benefit for all
concerned compared to holding to the original positions.

v. Agreement: This is achieved when there is an understanding of both side’s viewpoints and
when their interests have been considered. It is essential for everybody involved to keep an
open mind in order to achieve an acceptable solution. Any agreement needs to be made
perfectly clear so that both sides know what has been decided.

Implementing a Course of Action

From the agreement, a course of action has to be implemented to carry through the decision.
Psychological factors that affects negotiations
 How comfortable each party feels about conflict?
 How each party perceives or mis-perceives the other
 The assumptions each party makes about the other and the problem
 The attitudes and expectations about the other
 The decisions each party makes about trust, about how important “winning” is, how
important it is to avoid conflict, how much one likes or dislikes the other, how important
it is to “not look foolish.”

Elements that affect negotiation

 Personalities: This requires one to be conscious of aspects of their personality like own
needs and interpersonal style as well as the other person’s personality, these factors will
play a key role and understanding own personality is an important factor.
 Personality and style: The extent to which one trusts a person, how much one is free
with their emotions and how much they want to reveal.
 Physical space: The location of the negotiation should be comfortable for both parties.
One party should not be in a space where they feel comfortable and the other is
uncomfortable.
 Past interaction: It is important to consider how the history of conflict resolution will
affect the intended negotiation with the person.
 Time pressure: One should consider the availability of time. The parties should not
feel pressured by time to an extent of not exhausting the process. If time is a constraint,
the parties should consider changing it.

Mediation: This is a process which involves a third party who helps the parties with disputes
to come into an agreement. This third-party person is called mediator who is supposed to be
neutral when listening and talking. He helps the parties to reach a mutually acceptable
resolution.

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Types of Mediation
There are two types of mediation that are commonly used namely;
a) Facilitative: This process involves a professional mediator who attempts to facilitate
negotiation between the parties in conflict. He encourages the disputants to reach their
own voluntary solution by exploring each other’s deeper interests. He does not impose
a decision or give recommendations.
b) Evaluative: This is a contrast of facilitative mediation. The mediators are more likely
to make recommendations and suggestions and to express opinions. The mediators
don’t focus on the underlying interests of the parties involved, instead, they help parties
assess the legal merits of their arguments and make fairness determinations.

Mediation process
i. Planning: The mediator helps the parties to decide where to meet and who should be
present.
ii. Each side might have lawyers, co-workers, and family members on their team
depending on the context.
iii. Mediator’s introduction: When the parties settles in the mediation room, the mediator
introduces the participants, outlines the mediation process, and lays out ground rules.
The mediator also presents his goal for the mediation process to help the parties come
to a negotiated agreement on the issue of a disputed consulting fee and to resolve the
business relationship amicably.
iv. Opening remarks: After the introduction, each side presents their view of the dispute
without interruption. They may also vent their feelings at this point. This is an important
stage since the dispute is well understood by all present thus knowing how to handle
the process.
v. Joint discussion: This is the stage where the disputants and the mediator ask questions
with the goal of arriving at a better understanding of each party’s needs and concerns.
The mediators’ role is to clarify questions which are not clear since the disputing sides
often have difficulty listening to each other.
vi. Caucuses: At this stage, the emotions might run high, the mediator splits the two sides
into separate rooms for private meetings or caucuses. Here the mediator tells each side
that the information they share in caucus will remain confidential. With the assurance
of confidentiality, the disputants are encouraged to share new information about their
interests and concerns.
vii. Negotiation: At this stage ideas and proposals that meet each party’s core interests are
formulated. The mediator can lead the negotiation with all parties in the same room.
When the disputants are putting together their settlement proposal, they seek the advice
of the mediator.

Conciliation
In conflict management, conciliation is the process that involves an independent conciliator
who facilitates communication between the two parties having the dispute with the aim of
achieving a settlement.

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Conciliation Process
i. Preparation and conciliator’s opening statement: The opening statement includes a
brief description of the role of the conciliator and participants, the conciliation process
and any ground rules.
ii. Parties’ statements: Each party or their representative provides a statement about the
dispute from their perspective. Emerging interests, needs and options for resolution are
acknowledged for use later in the conciliation.
iii. Joint exploratory session and discussion: The conciliator summarizes views and
options and discusses with the parties the strengths and weaknesses of their case. The
conciliator encourages parties to communicate directly with each other. The parties’
interests are further clarified. This provides the basis for joint problem solving, raising
options for agreement and may be followed by further joint sessions where necessary.
During this stage, the parties may take a break from joint session to give lawyers
instructions and consider offers and advice.
iv. Private meetings: the conciliator may hold private meetings with each of the parties. He
may reality test alternatives and options and comment about potential outcomes and the
strengths and weaknesses of each party’s case.
v. Concluding Joint session: There may be a need for additional joint sessions. The
conciliator will assist the parties to narrow the issues in dispute. The conciliator facilitates
final negotiations and fine-tuning of the agreement. Alternatively, the conciliation may
need to be adjourned or terminated.
If the conciliation fails to produce a settlement, the case will automatically go to a hearing or
conference unless the employee formally discontinues their application.

Diplomacy
Diplomacy is the process of representation and negotiation by which states customarily deal
with one another in times of peace. (Padelford and Lincoln). Diplomacy is a principal activity
of heads of states, governments and special bodies of external relations in implementation of
goals, objectives of state’s foreign policy as well as protection of rights and interests of state
abroad.

Forms of diplomacy
Politics of pacification
The essence of this type of diplomacy is pacification, that is, unwillingness to aggravate or
incite contradictions that exist between countries. This kind presupposes various concessions
for opposite sides on insignificant, unimportant issues. The most often seen examples of this
diplomacy is that of England and France on the eve of World War II, when they tried to resist
aggressive aspirations of Hitler.

Gunboat diplomacy
This is the demonstration of strength to achieve foreign policy goals. This diplomacy got its
name from the word “gunboat” a small ship with a serious artillery armament. The basis of
gunboat diplomacy is full recognition of the legitimacy of using military force to achieve goals
of foreign policy.

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Dollar diplomacy
This type of diplomacy involves the use of economic methods to achieve state’s goals. It is the
economic enslavement of the small states and submission to the domination of large foreign
banks and the industrial companies. In this case, dollars literally act as bullets or weapons in
the hands of diplomats. Dollar diplomacy pursues the goal to place small countries in political
dependence on the country that provides economic assistance. Whenever any of such countries
tried to work toward their independence, more rough means were usually put into effect.

Public diplomacy
This diplomacy differs from traditional diplomacy, which is carried out by people with a special
profession (diplomats, politicians). Public diplomacy is a means by which the government of
one country tries to influence the society of another country. It is the ability to achieve goals
through attractive offers, rather than bribery and coercion. Instruments of public diplomacy
must be tailored to specific tasks. Foreign broadcasting is also suitable for foreign policies, and
countries can arrange talks about their cultures, exhibitions and tours.

People’s diplomacy
This is the historically continuous process of communication, mutual knowledge, influence and
enrichment of cultures and people.

Intermediary diplomacy
It is one of the means for peaceful settlement of disputes between states through a series of
negotiations with the participation of a third state, on the basis of conditions advance by it.

Economic diplomacy
This is a specific area of modern diplomatic activity connected with the use of economic
problems as an object, means of struggle, cooperation in international relations. It presupposes
diplomatic service activities focused on increasing exports attracting foreign investment and
participation in work of international economic organizations, that is, actions focused on
reaffirming a country’s economic interest at international level.

Digital diplomacy
It is the use of the internet, information and communication technologies for solving diplomatic
problems. In the framework of digital diplomacy, new media, social networks, blogs and
similar global media platforms are used. The main goals of digital diplomacy are the promotion
of foreign policy interests and information propaganda via the internet.

Peace Building
This is the process of finding out the reasons why people fight and supporting societies to
manage their differences and conflicts without resorting to violence. The aim of peace building
is to prevent the outbreak, escalation, continuation and recurrence of violence. It is a long-term
and collaborative process, as it involves changes in attitudes, behaviours and norms.

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Approaches and methods of peace building
The methods are aimed at ensuring that people are free from harm and this can be achieved in
the following ways;
 Engaging in various forms of diplomacy
 Strengthening democracy and inclusive politics
 Improving justice systems
 Working to improve general security
 Working together with business and trade to create sustainable jobs or improve their
employment practices
 Improving infrastructure and urban and rural planning
 Including peace education in curricular
 Crating free and inclusive media
 Improving healthcare
 Making development programmes in conflict areas more sensitive to conflict dynamics

Peace building concepts

 Peace keeping: This is the deployment of a United Nations presence in the field,
hitherto with the consent of all the parties’ concerned, normally involving UN military
and police personnel and frequently civilians as well. Peace keeping is a technique that
expands the possibilities for both the prevention of conflict and the making of peace.
 Peace making: This is an action to bring hostile parties to agreement, essentially
through such peaceful means as those foreseen in Chapter VI of the Charter of the
United Nations.
 Peace building: This is an action to identify and support structures which will tend to
strengthen and solidify peace in order to avoid a relapse into conflict.

Arbitration
This is a method of dispute resolution without going to court. In arbitration, the dispute is
submitted to a third party (the arbitrator) who resolves the dispute after hearing a presentation
by both parties.

Advantages of Arbitration
 The parties to the dispute usually agree on the arbitrator, therefore both sides have
confidence in the arbitrator.
 The dispute will normally be resolving much sooner because the date for the arbitration
can usually be obtained a lot faster than a court date.
 Arbitration is usually a lot less expensive because the arbitrator is paid a lesser fee than
what would be paid to an expert witness to come and testify at trial.
 Unlike a trial, arbitration is essentially a private procedure which ensures that the
dispute and the resolution can be kept confidential.
 If arbitration is binding, there are very limited opportunities for either side to appeal
meaning the arbitration is the end of the dispute which is not often present with a trial
decision.

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Disadvantages of arbitration
 The parties cannot appeal when the arbitration process is binding since the process is
final.
 It is not economical when the matter is complicated since the amount paid to the
arbitrator is modest especially when the matter might require medical evidence.
 The arbitrator may consider some evidence that might not be considered in a court of
law when making judgment.
 When the witness present information in form of documents, it’s hard to cross-
examine.
 Discovery may be more limited with arbitration.

Avoidance
This is a strategy of refusing to engage in conflict. It could be because the party feels the issue
is not of much importance to engage in. The goal of avoidance is to avoid making a decision
at whatever cost.

Collaborations
This is when the disputants compromise their feelings in order to achieve a resolution. Both
parties achieve what we call a ‘win-win’ situation.

Advantages of collaborations
 It makes all parties involved in the dispute feel valued and understood.
 The hostility is removed hence free expression.
 Leads to understanding, empathy and mutual respect.
 Makes it easier for future conflict resolutions.

Disadvantages of collaborations
 It takes a lot of time and energy to solve a dispute.
 The mediator must sift through multiple solutions.

Advantages of conflict management

 Encourages healthy debate and argument
 Allows the employee to work towards their goal
 There a sense of commitment in the organization
 Clears all the grey areas in the organization
 Increases productivity

Disadvantages of conflict management

 It affects the emotions among the employees in the organization
 High turnover for the employees who feel they are being bullied
 There are cases of manipulation when the mediator tends to question too much
 Results in winners and losers in the organization

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  Attempting to solve a conflict can make it complicated and harder especially when the
parties are not willing to resolve their issues.

Conclusion
This learning outcome covered conflict and negotiations, causes of conflicts, conflict
management, conflict management methods, advantages and disadvantages of conflict
management.

Further Reading

Read more on: Types of mediation from Mediation by Katie Shonk (2020).

2.3.5.3 Self-Assessment

Written Assessment
1. Wanja and her colleague have had a heated disagreement. Emotions are raw, and feelings
have been hurt. Wanja approach her colleague after a brief silence. “I am sorry I attacked
you like that. I got angry and said thing I didn’t mean. “This is an example of the
collaborating tactic called?
A. Integration
B. Confrontation
C. Expanding the pie
D. Smoothing
2. You have been appointed to take part in a negotiation process in the organization that you
work with. Which of the following is NOT a step in the negotiation process?
A. Preparation and planning
B. Evaluation and feedback
C. Clarification and justification
D. Definition of ground rules
3. Mark, a claimant seeks compensation of Ksh150, 000 for personal injury against Claire.
Mark’s counsel is aware that the trial may take at least three days. On which track would
the case be heard?
A. Fast track
B. Small claims track
C. Either the fast track or small-claims track
D. Multi-track

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4. Conciliation and mediation are methods of dispute resolution. What is the difference
between the two?
A. Conciliation is the continuation of mediation with the difference that conciliation
produces a binding result, while mediation does not.
B. Conciliation is conducted exclusively by representative of the UN Secretary
General, while mediation may also be conducted by third States’ officials.
C. Mediation is usually conducted by a person appointed with the consent of parties,
while conciliation involves commission, which proceeds to an impartial
examination of the dispute and proposes settlement terms
D. Conciliation is a method of dispute settlement pursued only by virtue of a treaty,
while mediation may also be on an ad hoc basis.
5. As the HR manager in your organization, what steps would you take in the process of
negotiation?
6. List the steps in the conciliation process
7. Kamau is the head of sales in his organization, he recently noted poor relations among the
sales team. He thinks there could be some conflict among the team that needs to be resolved.
What could be the causes of these conflicts?

Case study
You are the Human Resource Manager in a high-end manufacturing company with different
Department which are interdependent and have to work closely together for the success of the
company. You have noted that recently the Top Management of the Manufacturing Department
and Dispatch Department has a cold relationship. You want to arrest the situation before it goes
out of hands and start affecting the performance of the company. Demonstrate the path you
would take to mediate.

2.3.5.4 Tools, Equipment, Supplies and Materials

 Computers
 Classroom
 Functional office

2.3.5.5 References

Alexander, L. G. (2000). Strategies for Preventive Diplomacy and Conflict Resolution:

Scholarship for Policymaking. American Politician Science Association.
Armstrong, Michael. (2001). Human Resource Management Practice. Kogan Page Ltd (7th
Ed.), London.

Berridge, G. R. & James, A. (2003). A Dictionary of Diplomacy, 2nd Ed. Palgrave Macmillan,
New York.

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2.3.6 Learning outcome No 5: Manage organization change and culture
2.3.6.1 Learning Activities

Learning Outcome No5: Manage organization change and culture

Special
Instructions

5.1. Definition of organization culture and change management Group discussions

5.2. Identification of characteristics of organization culture Class presentations
5.3. Definition of Types of organization culture Assignments
5.4. Underlining of methods of creating and sustaining
organization culture
5.5. Identification of liabilities of organization culture
5.6. Application of Approaches to managing change
5.7. Establishment of resistance to change

2.3.6.2 Information Sheet No: 2 /LO 5: Manage organization change and culture

Introduction
This learning outcome covers; organization culture and Change management, types of
organization culture, characteristics of organization culture, methods of creating and sustaining
organization culture, liabilities of organization culture, approaches to managing change and
resistance to change.

Definition of key terms

Organization culture: This is the collection of values, expectations, and practices that guide
and inform the actions of all the members of an organization.

Change management: It is an organization’s systematic approach to dealing with transition or

transformation of the goals, processes and technologies

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Content/Procedures/Methods/Illustrations

ORGANIZATION CULTURE
Characteristics of organization culture
Organization culture is the collection of values, expectations, and practices that guide and
inform the actions of all the members of an organization. According to Robbie Katanga,
“Organizational Culture is how organizations do things.” An effective organization culture has
the following characteristics;
a) Innovation (Risk Orientation): This is a culture of placing high value on innovation thus
encouraging employees to take risks and innovate in the performance of their jobs. A
culture that does not encourage innovation leads to the employees doing their jobs the
same way that they have been trained to do without looking for ways to improve their
performance.
b) Attention to Detail (Precision Orientation): This is a characteristic of an organization
that requires employees to be accurate in their work. A culture that places a high value
on attention to detail expects its employees to perform their work with precision. A
culture that places a low value on attention to detail does not expect its employees to
perform their work with precision.
c) Emphasis on Outcome (Achievement Orientation): This is a characteristic of placing
high value on results rather than how the results are achieved. An organization that
instructs its sales force to do whatever it takes to get sales orders has a culture that
places a high value on the emphasis on outcome characteristics.
d) Emphasis on People (Fairness Orientation): This is a characteristic of an organization
placing high value on the importance of how their decisions affect the people in their
organizations. These organizations emphasize on the importance treating their
employees with respect and dignity.
e) Teamwork (Collaboration Orientation); This is a characteristic of organizing work
activities around teams instead of individuals. People who work for these types of
organizations tend to have a positive relationship with their co-workers and managers.
f) Aggressiveness (Competitive Orientation): This characteristic of organizational culture
dictates whether group members are expected to be assertive or easy-going when
dealing with companies they compete within the marketplace. Companies with an
aggressive culture place a high value on competitiveness and outperforming the
competition at all costs.
g) Stability (Rule Orientation): An organization whose culture places a high value on
stability is rule-oriented, predictable, and bureaucratic in nature. These types of
companies typically provide consistent and predictable levels of output and operate best
in non-changing market conditions.

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Types of organization culture
Clan culture
This is a people-focused culture in the sense that the company feels like one big happy family.
It is a highly collaborative work environment where every individual is valued and
communication is a top priority.

Advantages of Clan culture

a) Productivity and company growth: A happy team creates a happy business. There is
positive correlation between satisfied employees, productivity and business growth.
When employee’s needs are put first, office morale is high and staff feels valued within
the workplace. The employees who trust their managers and colleagues feel more
driven to go above and beyond their general workload. These employees can openly
voice their ideas and take greater risks.
b) Clear communication: There are many benefits to an organization that communicates
freely and often. Clan cultures put more precedence on weekly one-to ones, team
presentations and meetings where everyone is invited. Clan cultures urge the organization
as a whole to sing from the same hymn sheet. The more employees the management
involves the louder and further the message can spread.
c) Ideas and feedback: In this culture, an organization adopts a more inclusive approach
welcoming ideas and feedback with open arms. It is beneficial to air out the office laundry
and collectively seek honest feedback. Only when there is an issue can one scrum together
and produce resolutions to move past them. Employee surveys, suggestion boxes and
creativity rooms are prominent features in the rich tapestry of clan culture traits.
d) Healthier working environment: An organization that focuses its attention on the people
who make up its team and company, ensures that their wellbeing, health and even personal
goals sharpen into the forefront.

Disadvantages of Clan culture

a) Too much talk: There is a difference between communicating enough and over-
collaboration. When there is too much talk, people are unable to provide or take anything
valuable from a meeting because they are so consumed and distracted by their own work
schedule. Therefore, the organization should push past unnecessary discussions for
discussions’ sake. Meetings’ guidelines should be set and visually remind employees of
the guidelines by printing them out on a poster or pop-up for each group space.
b) The boss is not the best friend: It is important for the bosses to build a rapport with their
staff while maintaining boundaries. They can have fun with their team and at the same
time guide and assert authority when necessary. The boss is not the best friend; they should
keep their social life contained and find ways to help the employees do their best job.

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 c) Personality clashes: When employee individualism and flexibility is promoted alongside
a ‘one vision’ organization, there is a risk of personality clashes and stepping on toes. Clan
culture can lead to blind spots where the employees could fear challenging a wrongly held
group assumption or collective prejudice.
d) Inappropriate behaviour: There is a very fine line between encouraging employee jollying
and invading a person’s basic rights. It is important to speak to the HR advisor and clearly
define the lines of what is acceptable behaviour in terms of these tricky
employee/employer harassment and discrimination cases.
e) Adhocracy culture: This is an organizational culture in which various groups of
individuals reach consensus by responding in an ad hoc fashion to frequently changing
priorities.

Market culture
This is a type of corporate culture that emphasizes competitiveness not only between the
Organization and its market competitors but also between employees. This is the most
aggressive and capitalistic of the other cultures. Employees are encouraged to set difficult goals
and strive to achieve them. Employee performance is closely monitored and often directly
rewarded or punished. The emphasis on individual performance is thought to lead to greater
achievement for the individual employee and as a result, greater success for the organization.

Advantages of Market culture

a) Maximized profit: A culture that is solely customer, results and success orientated
comes higher revenue. Goals are met, if the goals are not met, new ways are explored
to reach them. Employees who are consistently motivated and pushed to achieve big
results are more likely to generate a bigger income that those who aren’t.
b) Always one step ahead: An organization with a market culture is dedicated to market
research and staying on the ball with daily trends and goings-on with their industry.
This way they are always ready to react to any changes in the market to ensure they
maintain the market share and stay ahead of the game.
c) Driven and ambitious employees: In this culture, the employees are consistently pushed
to go the extra mile and are driven and inspired by their leaders, resulting in team
members who are constantly focused on building on their skills and knowledge.

Disadvantages of Market culture

a) High cost: This culture needs to stay in tune with the surrounding market and industry,
in order to stay in the know with any changes so they can be reacted to. In order for this
to happen, the organization needs to fork out a significant amount for market research
which is an expensive requirement.
b) Burn-out: Constantly pushing employees to achieve results in a fast-paced environment
makes them feel over-worked. This can result in cases of poor mental health and
employee burnout which affects productivity and team morale.

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 c) Toxic atmospheres: When the working environment is highly competitive, employees
can be up against each other which results in unproductivity. The organization may face
also difficulty in its team collaborating and working together smoothly on important
projects.

Adhocracy culture
This is a form of business management that emphasizes individual initiative and self-
organization in order to accomplish tasks. Adhocracies can work well in fast-changing
industries where organizations that can identify and act on new opportunities the fastest have
a competitive advantage.

Characteristics of Adhocracy culture

 The structure takes shape organically
 Minimal formalization of employee behavioural expectations
 Job specialization not necessarily tied to or based on formal training.
 Specialists often work in functional units for housekeeping purposes but can deploy
them in small, market-based project teams to accomplish specific goals.
 Low or no standardization of procedures.
 Roles not clearly defined.
 Significant power belongs to specialized teams.

Advantages
 It is very effective at problem-solving and innovation.
 Thrives in diverse environments that are equipped with sophisticated and often
automated technical systems that support business processes.

Disadvantages
a) Solving routine problems: An organization functioning as an adhocracy lacks
formalized procedures, which causes the management to handle each work problem
differently. The lack of consistency can be frustrating for employees looking to
establish boundaries, rules for proper conduct and standards of acceptable performance.
b) Maintaining clear communication: An organization functioning as an adhocracy
experiences difficulty in clear communication because it lacks a rigid hierarchy for
determining where employees should direct important information. The lack of job
titles and clearly defined management in this culture can lead to vital information
languishing in the receiving bins or e-mail accounts of employees who don’t understand
the importance of the information.
c) Lack of risk management: Organizations with adhocracies don’t plan ahead for
problems or conduct risk management assessments of business plans. This leads to a
reactionary style of business in which the company responds to issues as they arise as
opposed to having plans ready to avoid these problems or to mitigate their impact.

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 d) Dependence on technology: An organization functioning as an adhocracy depends
greatly on modern technology such as video conferencing and e-mail to facilitate the
flow of information through the company. The organization’s ability to disseminate
information quickly among employees can be affected by network problems and power
outages.

Hierarchy culture
This is an organizational culture that focuses on the development and maintenance of stable
organizational rules structures and processes by implementing a hierarchical system of power
and management.

Advantages
 A clear structure whereby authority and levels of responsibility are easily understood.
 Employees are secured, paid on time, and are safe to stay in their role for the long run.
 Benefits of promotion lead to exclusive advanced status and reward. This can prove a
great motivator for employees.
 There is specialization since employees gain status through consistent hard work and
effort within a set role. By focusing on their work alone, they are more likely to achieve
expert status in that one field.
 Departmental loyalty can conversely promote a tribe-like loyalty. This means that
within each team, strong bonds can form.

Disadvantages
 Communication is limited and credibility is based on employment status, not life
experience.
 There is departmental rivalry in this culture. The higher the stakes are for each
promotion, the higher the competition. Departmental goals can easily take precedence
over company vision.
 There is stagnation which affects the organization performance due to the increase of
competition in the market.
 It faces high costs due to the multiple layers of upper management.

Methods of creating and sustaining organization culture

An organizational culture tends to emerge over time, shaped by the organization’s leadership
and by actions and values perceived to have contributed to earlier successes. An organization
culture can be managed through the cultural awareness of organizational leaders and HR
professionals. Managing a culture takes focused efforts to sustain elements of the culture that
support organizational effectiveness. An organization culture is created through the following
methods:

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Open communication between all organization levels: An open communication ensures that
every employees’ voice is valued which is key to getting them involved. An organization
should encourage lines of communication between employees and top management by
optimizing corporate communication channels and by allowing employees to submit ideas.
Encouraging open innovation keeps all employees involved and support employees in sharing
their best ideas.

Create a climate of ideas: Innovation and creativity is realized whenever employees’ feel that
their ideas are valued. Executives and managers should be encouraged to utilize crowdsourcing
as a part of their toolbox for employee engagement. All ideas in an organization should be
celebrated as this encourages employees to be innovative. This attitude cultivates new ideas
and also fosters a can-do innovative attitude of continuous improvement.

Project promotion: In order for an organization to achieve strong results in its project, it
should take a serious approach to marketing the project internally. The project manager should
not take a very hands-off approach, expecting the initiative to achieve instant success as soon
as a solution is implemented.

Reward innovation – Not success: An organization can develop an innovation incentive

program by making the act of creativity itself the one that is lauded and rewarded in the
organization. The employee should know that when they think out of the box they are listened
and appreciated. The employees should be rewarded for their innovation and be reminded that
they are appreciated for their contribution to the process, no matter how big or small.

Build a diverse team: When hiring employees, the HR manager should aim at bringing in
individuals with a diverse set of problem-solving skills and share the passion and vision of the
organization culture. Also, the professionals should have diverse skill-sets and proficiencies in
order to create an environment that breaks traditional boundaries and offer new solutions and
perspectives.

Sustaining organization culture: Once a culture has been developed, there are practices
within the organization that act to maintain it by giving employees a set of similar experiences.
Sustaining a culture depends on the following forces:

Selection: The selection process aims at bringing employees who can make the organization
successful through their services. Therefore, the HR manager should select candidates who
believe in the values of the organization. The values of the selected candidates should match
the values of the organization. This way, the selection process sustains an organization’s culture
by selecting those individuals who will fit into the organizations’ core values.

Top management: It is the top management’s role to establish norms that filter down through
the organization. Their conduct both implicit an explicit show what is desirable, their conduct
is seen through pay raises, promotions and other rewards.

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Socialization: This is the process of helping new employees to adapt to the culture of the
organization. It is done in 3 stages namely:
i. The pre-arrival stage: This stage comprises of all the learning that occurs before a
new member joins the organization. The process covers both the work to be done and
the organization. New employees are socialized to have attitudes and behaviour that
organization wants.
ii. Encounter stage: In this stage the new employee sees what the organization is really
like and confronts the possibility that expectations and reality may diverge. The stage
merely provides a reaffirmation of the perceptions gained during the pre-arrival stage.
When employees learn the essential, this contributes to sustenance of the culture.
iii. Metamorphosis stage: This is the stage in which a new employee changes and adjusts
to the job, work group and organization. In this stage relatively long-lasting changes
take place. The employee masters the skill required for his job successfully performs
his new roles, and makes the adjustments to his work group’s values and norms. The
new employee internalizes the norms of the organization and his work groups and
understands and accepts the norms of the organization and his work group. The success
of this stage has a positive impact on the new employee’s productivity and his
commitment to the organization.

Liabilities of organization culture

Culture can have dysfunctional aspects in some instances. The following are some of the
liabilities of organization culture:
 Barrier to change: When an organization is undergoing change, culture may impede
change.
 Barrier to diversity: Strong cultures put considerable pressure on employees to
conform.
 Barrier to mergers and acquisitions: Merging the cultures of two organizations can be
difficult if not impossible.

Change management
Change management is defined as the methods and manners in which a company describes and
implements change within both its internal and external processes.

Approaches to managing change

Kotter’s change management theory: This is one of the most popular and adopted ones in
the world. It is divided into eight stages where each one of them focuses on a key principle that
is associated with the response of people to change.

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Kotter’s 8 – Step Change Model:
Step 1: Create Urgency
For change to happen, it helps if the whole company really wants it. Develop a sense of urgency
around the need for change. This may help you spark the initial motivation to get things
moving. This isn’t simply a matter of showing people poor sales statistics or talking about
increased competition. Open an honest and convincing dialogue about what’s happening in the
marketplace and with your competition. If many people start talking about the change you
propose, the urgency can build and feed on itself.

What you can do:

 Identify potential threats and develop scenarios showing what could happen in the
future.
 Examine opportunities that should be, or could be, exploited.
 Start honest discussions, and give dynamic and convincing reasons to get people talking
and thinking.
 Request support from customers, outside stakeholders and industry people to strengthen
your argument.

Step 2: Form a Powerful Coalition

Convince people that change is necessary. This often takes strong leadership and visible
support from key people within your organization. Managing change isn’t enough – you have
to lead it. You can find effective change leaders throughout your organization – they don’t
necessarily follow the traditional company hierarchy. To lead change, you need to bring
together a coalition, or team, of influential people whose power comes from a variety of
sources, including job title, status, expertise, and political importance. Once formed, your
“change coalition” needs to work as a team continuing to build urgency and momentum around
the need for change.

What you can do:

 Identify the true leaders in your organization, as well as your key stakeholders.
 Ask for an emotional commitment from these key people.
 Work on team building within your change coalition.
 Check your team for weak areas, and ensure that you have a good mix of people from
different departments and different levels within you company.

Step 3: Create a Vision for Change

When you first start thinking about change, there will probably be many great ideas and
solutions floating around. Link these concepts to an overall vision that people can grasp easily
and remember. A clear vision can help everyone understand why you’re asking them to do
something. When people see for themselves what you’re trying to achieve, then the directives
they’re given tend to make more sense.

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What you can do:
 Determine the values that are central to the change.
 Develop a short summary (one or two sentences) that capture what you “see” as the
future of your organization.
 Create a strategy to execute that vision.
 Ensure that your change coalition can describe the vision in five minutes or less.
 Practice your “vision speech” often.

Step 4: Communicate the Vision

What you do with your vision after you create it will determine your success. Your message
will probably have strong competition from other day-to-day communications within the
company, so you need to communicate it frequently and powerfully, and embed it within
everything that you do. Don’t just call special meetings to communicate your vision. Instead,
talk about it every chance you get. Use the vision daily to make decisions and solve problems.
When you keep it fresh on everyone’s minds, they’ll remember it and respond to it. It’s also
important to “walk the talk”. What you do is far more important and believable that what you
say. Demonstrate the kind of behaviour that you want from others.

What you can do:

 Talk often about your change vision.
 Address peoples’ concerns and anxieties, openly and honestly.
 Apply your vision to all aspects of operations from training to performance reviews.
Tie everything back to the vision.

Step 5: Remove Obstacles

If you follow these steps and reach this point in the change process, you’ve been talking about
your vision and building buy-in from all levels of the organization. Hopefully, your staff wants
to get busy and achieve the benefits that you’ve been promoting. But is anyone resting the
change: and are there processes or structures that are getting in its way? Put in place the
structure for change, and continually check for barriers to it. Removing obstacles can empower
the people you need to execute your vision, and it can help the change move forward.

What you can do:

 Identify, or hire, change leaders whose main roles are to deliver the change.
 Look at your organizational structure, job descriptions, and performance and
compensation systems to ensure they’re in line with your vision.
 Recognize and reward people for making change happen.
 Identify people who are resisting the change, and help them see what’s needed.
 Take action to quickly remove barriers (human or otherwise).

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Step 6: Create Short-Term Wins
Nothing motivates more that success. Give your company a taste of victory early in the change
process. Within a short time, frame (this could be a month or a year, depending on the type of
change), you’ll want to have some “quick wins” that your staff can see. Without this, critics
and negative thinkers might hurt your progress. Create short-term targets not just one long-
term goal. You want each smaller target to be achievable, with little room for failure. Your
change team may have to work very hard to come up with these targets, but each “win” that
you produce can further motivate the entire staff.

What you can do:

 Look for sure fire projects that you can implement without help from any strong critics
of the change.
 Don’t choose early targets that are expensive. You want to be able to justify the
investment in each project.
 Thoroughly analyse the potential pros and cons of your targets. If you don’t succeed
with an early goal, it can hurt your entire change initiative.
 Reward the people who help you meet the targets.

Step 7: Build on the Change

Kotter argues that many change projects fail because victory is declared too early. Real change
runs deep. Quick wins are only the beginning of what needs to be done to achieve long-term
change. Launching one new product using a new system is great. But if you can launch 10
products, that means the new system is working. To reach that 10th success, you need to keep
looking for improvements. Each success provides an opportunity to build on what went right
and identify what you can improve.

What you can do:

 After every win, analyse what went right, and what needs improving.
 Set goals to continue building on the momentum you’ve achieved.
 Learn about kaizen, the idea of continuous improvement.
 Keep ideas fresh by bringing in new change agents and leaders for your change
coalition.

Step 8: Anchor the Changed in Corporate Culture

Finally, to make any change stick, it should become part of the core of your organization. Your
corporate culture often determines what gets done, so the values behind your vision must show
in day-to-day work. Make continuous efforts to ensure that the change is seen in every aspect
of your organization. This will help give that change a solid place in your organization’s
culture. It’s also important that your company’s leaders continue to support the change. This
includes existing staff and new leaders who are brought in. if you lose the support of these
people, you might end up back where you started.

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What you can do:
 Talk about progress every change you get. Tell success stories about the change
process, and repeat other stories that you hear.
 Include the change ideals and values when hiring and training new staff.
 Publicly recognize key members of your original change coalition, and make sure the
rest of the staff new and old remembers their contributions.
 Create plans to replace key leaders of change as they move on. This will help ensure
that their legacy is not lost or forgotten.

Lewin's Change Management Model.

Kurt Lewin developed a change model involving 3 steps. The model represents a very simple
and practical model for understanding the change process. For Lewin, the process of change
entails creating the perception that a change is needed, then moving toward the new, desired
level of behaviour and finally, solidifying that new behaviour as the norm. The model is still
widely used and serves as the basis for many modern change models.

Unfreezing Stage: Create the perception that a change is needed

 Recognizing the Need for Change
 Encouraging: The Replacement of Old Behaviours and Attributes with New
Behaviours.

Changing Stage: Move toward the new, desired level of behaviour

 Implement Change by Taking Specific Action
 Help Employees to Learn A New Concept or Point of View
 Role Models, Mentors, Experts, Benchmarking Results and Training Are Useful
Mechanisms to Facilitate Change.

Refreezing Stage: Solidify new behaviour as the norm.

 Changes Are Reinforced and Stabilized
 Leaders Integrate the Changed Behaviour or Attribute into The Normal Way of Doing
Things.
 Coach Helps Reinforce the Stability of Change.

McKinsey 7 S Model
It is a tool that analyses firm’s organizational design by looking at 7 key internal elements:
strategy, structure, systems, shared values, style, staff and skills, in order to identify if they are
effectively aligned to allow organization to achieve its objectives.

Strategy: It is a plan developed by a firm to achieve sustained competitive advantage and

successfully compete in the market. What does a well-aligned strategy mean in 7s McKinsey
model? In general, a sound strategy is the one that’s clearly articulated, is long-term, helps to
achieve competitive advantage and is reinforced by strong vision, mission and values.

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Structure: This represents the way business divisions and units are organized. They include
the information of who is accountable to whom. In other words, structure is the organizational
chart of the firm. It is also one of the most visible and easy to change elements of the
framework.

Systems: These are the processes and procedures of the company, which reveal business’ daily
activities and how decisions are made. Systems are the area of the firm that determines how
business is done and it should be the main focus for managers during organizational change.

Skills: These are the abilities that firm’s employees perform very well. They also include
capabilities and competences. During organizational change, the question often arises of what
skills the company will really need to reinforce its new strategy or new structure.

Staff: This element is concerned with what type and how many employees and organization
will need and how they will be recruited, trained, motivated and rewarded.

Style: This represents the way the company is managed by top-level managers, how they
interact, what actions do they take and their symbolic value. In other words, it is the
management style of company’s leaders.

Shared Values: They are at the core of McKinsey 7s model. They are the norms and standards
that guide employee behaviour and company actions and thus, are the foundation of every
organization.

McKinsey model

Figure 1: Mckinsey model Source: Strategic Management Insight.

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Nudge Theory
The concept is a relatively subtle policy shift that encourages people to make decisions that are
in their broad self-interest. It is any aspect of the choice architecture that alters people’s
behaviour in a predictable way without forbidding any options or significantly changing their
economic incentives. To count as a mere nudge, the intervention must be easy and cheap to
avoid. Nudges are not mandating.

Resistance to change
Resistance to change is the act of opposing or struggling with modifications or
transformations that alter the status quo.

Reasons for resistance to change

 Loss of status or job security in the organization
 Poorly aligned reward systems
 Surprise and fear of the unknown
 Peer pressure
 Climate of mistrust
 Organizational politics
 Fear of failure
 Faulty implementation approach

When is change needed?

 Implementation of a new technology
 Mergers and acquisitions
 Change in leadership
 Change in organizational culture
 Times of crisis such as economic crisis and pandemic such as covid 19.

Conclusion
This learning outcome covered organization culture and Change management, types of
organization culture, characteristics of organization culture, methods of creating and sustaining
organization culture, liabilities of organization culture, approaches to managing change and
resistance to change.

Further Reading

1. Read more on Change management: Principles of Management by Saleemi, N. A.

(2005) and Approaches to managing change: Organizational Behaviour 10th Ed. By
Stephen, P. (2003)

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2.3.6.3 Self-Assessment

Written Assessment
1. You are the HR lecturer covering organization culture as a unit. A student approaches you
in need of better understanding of organization culture. Which of the following terms is
NOT included in the definition of organizational culture, adopted within the book? (1 Mk)
A. Sensible procedures
B. Shared, often implicit assumptions
C. Guides the behavior and thinking of organizational members
D. Beliefs and values
2. Handy describes one type of culture as based upon the expertise within the organization,
as vested in the individuals within it, and reflected in the way that they must be organized
to meet the needs of the business. Which of the following reflects this type of culture?
A. Role culture
B. Person culture
C. Power culture
D. Task culture
3. You have been tasked with the responsibility of ensuring that the new employees are
introduced or integrated into the organizational culture. What is the name of this process?
A. Orientation
B. Socialization
C. Placement
D. Training
4. Wanja was recently offered a job in a company with a high collaborative work environment,
where every individual is valued and communication is a top priority. Which type of a
culture does this company has?
A. Clan culture
B. Market culture
C. Hierarchy culture
D. Adhocracy culture
5. As the HR manager of your organization, how can you implement change management in
the organization?
6. In the modern world of work, we experience changes in organizations. What are the types
of resistance to change experienced?
7. Organization culture is the collection of values, expectations, and practices that guide and
inform the actions of all the members of an organization. What are the characteristics of an
organization culture?

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Case Study
The former Head of Finance of Coptola Limited, a company that deals with Milk processing
has been fired following huge loses by the company. It is suspected that he has been
colluding with some of the junior staff to steal UHT milk from the company and
subsequently supplying it at a lower price than the company. His assistance has been put in
an acting capacity in the department. Apart from the changes h has proposed within the
department, he has also proposed changes that will affect the whole company. Some of the
changes are; interdepartmental Transfers, Installation of a CCTV to enhance security and
introduction of an award for the best worker of the Month. The top management has agreed
to his proposal. Propose a change management approach/theory that the company can use to
manage the proposed changes.

2.3.6.4 Tools, Equipment, Supplies and Materials

 Classrooms
 Lecture Halls
 Chalk Board
 Computers
 Tablets
 Internet
 Library
 Functional Office

References

Armstrong, M. (2001). Human Resource Management Practice. Kogan Page Ltd (7th Ed),
London.

Calin, G. (2009). From Information Management to Knowledge Management. IGI Global.

France.
Clayton, S. (2019). 6 Signs Your Corporate Culture Is a Liability. Harvard Business School
Publishing Corp. New York.

Saleemi, N.A. (2009).Personnel Management Simplified. Saleemi Publishers Limited.

Nairobi

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2.3.7 Learning outcome No 6: Manage groups and teams at the workplace
2.3.7.1 Learning activities

Learning Outcome No. 6: Manage groups and teams at the workplace

Learning Activities Special Instructions

6.1. Definition groups and teams Written questions

6.2. Identification of group dynamics
6.3. Highlighting of stages of group and team development Oral questions
6.4. Establishment of effective teams Observation
6.5. Identification of ways of managing groups and teams
6.6. Highlighting of barriers to effective groups and teams Projects
6.7. Identification of diversity at the work place
6.8. Highlighting of advantages and disadvantages of groups teams

2.3.7.2 Information Sheet No: 2 /LO6: Manage groups and teams at the workplace

Introduction
This learning outcome covers definition groups and teams, identification of group dynamics,
highlighting of stages of group and team development, establishment of effective teams,
identification of ways of managing groups and teams, highlighting of barriers to effective
groups and teams, identification of diversity at the work place and highlighting of advantages
and disadvantages of groups and teams.

Definition of key terms

Groups: This is the assembling together of individuals with a common interest. It is also
defined as the existence of a unifying relationship among individual with a common goal or
motive. There are two types of groups; the formal and informal groups.

Teams: These are groups of people performing independent tasks and are working towards the
accomplishment of a specific objective or common mission. There are four types of the team
which are; project, self-managed, virtual and operational teams.

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Content/Procedures/Methods/Illustrations
Groups and teams
There are two types of groups which are;
Informal group: These are groups that form natural due to a common interest. They have no
major agenda or goal towards achieving something. They can be created for entertainment
reasons, keeping a company or solving issues. Formal group: They are created by for
performing a particular task and are formed by the management.
On the other hand, there are four types of teams;
 Project teams; these are teams that comprise employees who have a shared goal; there
are four types of project teams which are; matrix, cross-functional teams and functional
teams.
 Self-management: Teams are employees of the same organization who work together,
and even though they have a wide array of objectives, they aim to reach a common
goal. In this type, there are no managers or authority figures.
 Virtual teams: These teams comprise of people in a different physical location but
connect by internet devices.
 Operational teams: These are types whose task is to support other teams in an
organization.
Both groups and teams have characteristics which make them outstanding and different form
each.
Table 3: Characteristics of groups and teams

Team Group
Leadership is shared Leadership is an individual
Accountability is collective, mutual and also There is individual accountability
individual
Performance is collective and not accorded Products of work are individual
to an individual
There is the encouragement of active Information is shared
problem-solving
Skills of an individual are both random and Skills of an individual are complementary
varied

Group dynamics
These are sets of behavioural and psychological processes that occur between groups or a social
group.
Stages of the group and team development
Five stages are involved in the development of groups and teams;
i. Forming: This is the initial stage and is mainly concerned with the formulation of
groups and teams. It is characterized with members seeking the assignment of work and
other attached assignments such as; power, status and affiliation.
ii. Storming: The formation of dyads and triads characterizes this stage. Members seek out
familiar or similar individuals and begin a deeper sharing of self.

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 Continued attention to the subgroup creates a differentiation in the group, and tensions
across the dyads/triads may appear. Pairing is a common phenomenon. There will be
conflict about controlling the group.
iii. Norming: In this stage, the dyads/triads begin to open up and seek out other members
in the group. Efforts are made to establish various norms for task performance.
Members begin to take greater responsibility for their group and relationship while the
authority figure becomes relaxed. Once this stage is complete, a clear picture will
emerge in the hierarchy of leadership. The norming stage is over with the solidification
of the group structure and a sense of group identity and camaraderie.
iv. Performing: This is a stage of a fully functional group where members see themselves
as a group and get involved in the task. Each person makes a contribution, and the
authority figure is also seen as a part of the group. Group norms are followed, and
collective pressure is exerted to ensure the Process of Group effectiveness of the group.
v. Adjourning: the group decides to disband. Some members may feel happy over the
performance, and some may be unhappy over the stoppage of meeting with group
members. Adjourning may also be referred to as mourning, i.e. mourning the
adjournment of the group.

Effective teams
The following are characteristics of effective teams;
 Have a common goal: They should have a shared objective that each team member is
working towards achieving.
 Open communication: The team should ensure that they openly communicate and air
out their concerns. This ensures that the team issues are solved effectively.
 Team roles: The team, should ensure that the roles of each member are clearly
formulated to avoid confusion and conflicts of interest.
 Time management: A team should ensure that the formulated goals and objectives are
achieved on a timely basis.
 Practical solving problems: A team should first identify the problem at hand. They
should ensure that when a problem arises, they find ways of solving the problem
appropriately.
 Bonding: For a team to be effective, they must be happy, team members should have
trust among themselves and support each other to avoid failure.

Ways of managing groups and teams

The following are effectively managing a group and team;
 Good communication maintenance: It is essential for the members in a group or a team
to be kept informed of the going-on in an organization. The members should also be
encouraged to give their feedback to the relevant authorities.
 Building working relationships which are positive: It is essential that members of a
team to have equipped knowledge about their colleagues in the team. The team leaders
should also get to know their team and group members. This builds a strong bond
among teams and groups.

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  Acknowledging good workgroups and teams that have outstanding performance should
be recognized and awarded. With this, it encourages creativity and innovation among
members.
 Be decisive: Group and team leaders should be assertive with decisions made. They
should also control the decision-making process
 Delegation of a job to the right people: Duties and responsibilities should be assigned
based on members strengthens and capabilities. This is achieved once leaders build a
positive relationship between them and team or group members.
 Management of conflict: Whenever there is conflict in a group or a team, this should
not be ignored. Ways of solving the conflict should be applied failure to this may lead
to the creation of a negative working environment
 Setting a good example: The team and group leaders should be a good example for the
team. This is by behaving professionally and show commitment in their work.

Barriers to effective groups and teams

These are simply the challenges that hinder a group or team from being effective. They include;
 Some of the team members dominate: Some members tend to possess a dominating
personality making other members seem to be their subjects. This kills the morale of
other members, and also their participation is minimal.
 Some team members perform poorly: Some members tend to give a poor performance
which is perceived as their inability to perform or lack of relevant skills. This hinders
the team or group from timely accomplishing their objectives.
 Poor team management: If the leaders have poor managerial skills, the team or group
will have poor management. Leaders should be equipped with the relevant skills and
should portray professionalism.
 Poor conflict management: It is healthy and normal for members of a team or group to
disagree. How these are managed is what matters, disagreements should be addressed
immediately they occur and should never be assumed.

Diversity at the workplace

Diversity at the workplace refers to a company employing an individual who has diverse
knowledge and skills in operations. This ensures that employees in a company have different
skills and innovations. Below are some of the benefits of diversification in the workplace;
 It reduces conflict among employees since they understand their differences, and this
is a uniting factor among employees.
 It increases confidence due to their unique qualities each employee possesses.
Diversification boosts employee’s confidence, thus increase in performance.
 It boosts engagement of employees among employees- employees are more likely to
perform well in an environment where there is diversity.
 Increased rage of ideas- due to diversification, employees' have a range of ideas which
if combined, there is increased production.
 Increased employee engagement- once employees are engaged and motivated, they tend
to motivated to improve in performance.

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  Reduce employee's turnover- a company can attain its employees for a long time. This
is because employees' feel they are appreciated and valued in an organization.
 Helps one to understand customers' better- this helps the company to get a broader
understanding of their customers.

Advantages and disadvantages of groups and teams

Table 4: Advantages and disadvantages of groups and teams
Advantages Disadvantages
More productive than an individual There is unequal participation among
members
Has more resources than an individual Conflict among members tend to rise
They are more reliable Discourages individual thinking
One tends to learn new things A member can easily avoid work
There is the use of new methods They are time-consuming
There is an exchange of information The process of making decisions takes time
The team is committed A lot of time is consumed.

Conclusion
This learning outcome covered definition groups and teams, identification of group
dynamics, highlighting of stages of group and team development, establishment of effective
teams, identification of ways of managing groups and teams, highlighting of barriers to
effective groups and teams, identification of diversity at the work place and highlighting of
advantages and disadvantages of groups and teams.

Further reading

Read more group and teams from Step, W. (2020). Top 16 Advantages and Disadvantages of
Working in a Group - Wise Step. Wise Step. Retrieved 25 September 2020

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2.3.7.3 Self-assessment

Written Assessment
1. You visited a company and asked an employee what a team is, which of the following was
their response?
A. People who are related by blood
B. People who have a come interest
C. People in the same department
D. None of the above
2. Suppose you are to identify an advantage of working as a group, which one of the following
would you give?
A. They are more reliable than working as an individual
B. A lot of time is consumed in making decisions
C. Many conflicts arise
D. They are tedious to form
3. From your understanding, which of the following is not a characteristic of an effective team
or group?
A. Have a common goal
B. Poor time consumption
C. Open communication
D. Time management
4. Being a team leader, state the stages to follow in forming a team
5. Briefly explain the types of teams formed in an organization
6. Perform in-depth research on Techno Company and deduce what are some of the ways of
effectively managing a group

Practical
The student is required to;
1. Visit a large organization of choice
2. Analyse the communication skills

Resources
1. Furniture (tables and chairs)
2. Appointment letter
3. Company's operations, procedures, and standards
4. Writing materials

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2.3.7.4 Tools/Equipments/ materials

 Reference materials
 Computer
 Writing materials
 Revision materials

2.3.7.5 REFERENCE

Bridgeman, D. (2018). The 6 Characteristics Of Effective Teams — As Revealed Through

Escape Rooms. Medium. Retrieved 25 September 2020.

Chand, S. (2020). Group Dynamics: its characteristics, stages, types and other Details |
Management. You’re Article Library. Retrieved 25 September 2020.
Deering, S. (2020). 8 Tips for Managing Your Team Effectively. Undercover Recruiter.
Retrieved 25 September 2020.

Go, G. (2019). What Is Diversity In The Workplace? Examples, Definition. Give A Grad A Go.
Retrieved 25 September 2020

Publisher], [. (2020). 13.6 Barriers to Effective Teams. Open.lib.umn.edu. Retrieved 25

September 2020

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2.3.8 Learning outcome No 7: Manage perceptions, personalities and emotions in the
work place
2.3.8.1 Learning activities

Learning Outcome No7: Manage perceptions, personalities and emotions in the work
place

Learning Activities Special

Instructions

7.1. Definition of terms Written questions

7.2. Identification of types of personalities
7.3. Establishment of effect of perceptions, personalities and Oral questions
emotions to performance Observation
7.4. Highlighting actors affecting perceptions, personalities and
emotions Projects
7.5. Establishment of importance of perceptions, personalities and
emotions
7.6. Management of perceptions, personalities and emotions

2.3.8.2 Information Sheet No: 2 /LO7 Manage perceptions, personalities and emotions
in the work place

Introduction
This learning outcome covers defining terms, identifying types of personalities, and
establishing the effects of perception, personalities, and emotions to performance, highlighting
actors affecting perception, personalities, and emotions and the establishment of the importance
of perceptions, personalities, and emotions.

Definition of key terms

Personalities: This refers to individual difference s in characteristic patterns of behaving,
thinking, and feeling. There are five personality traits: extroversion, openness, neuroticism,
agreeableness, and conscientiousness.

Perceptions: This refers to the organization, identification, and interpretation of information

so as representing and understanding presented information or the environment.

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Content/Procedures/Methods/Illustrations
Personalities and Perceptions
Types of personalities
Below are the types of personalities;
 Extrovert personality: This is a friendly person who is also quick in establishing
relations with others.
 Agreeable personality: These are people who cooperate well with others in an
organization, and they tend to put their personal needs aside while getting along with
others.
 Conscientious personality: These are people who exude confidence and feel capable of
goal accomplishment
 Cautious personality: These are people who look at problems fully before taking action
or making a decision.
 Self-conscious personality: These are so sensitive and mind so much on what other
people think about them.
 Adventurous personality: These are people who easily get bored by a routine and have
an adventurous personality.

Effect of perceptions, personalities, and emotions to performance

Personality affects performance in the following ways;
a) Outgoing or introverted: People with outgoing personalities work best in areas where
they interact with others. Such people are helpful in customer service as they provide
friendly working conditions; however, these people may not flourish when kept indoors
b) Employee work ethic: Some employees' work is limited to their payrolls while others
work beyond. The personality owned by the employee drives the extent to which one
works.
c) Attention to detail: Some employees' way of thinking is weird to viewing the
achievement of the company in the future. While others only view achievements based
on the current years, all this differs from one's personality in viewing issues.
d) Motivation and recognition: This are by identifying what ways are employees in an
organization motivated. Some are merely motivated by money; others are motivated by
recognition among colleagues and celebrating their success. This depends on one's
personality.

Emotions affect performance in the following ways;

There are two types of emotions which are; positive and negative emotions. Positive emotions
include; joy, excitement, contempt, and surprise; on the other hand, negative emotions include;
sadness, anger, disgust, fear, shame, and guilt.
 Positive emotions among employees enhance the employees' productivity in an
organization. When employees are excited, they have been motivated and tend to
perform more tasks without been pushed.
 Negative emotions among employees lead to low productivity among employees. They
perform poorly, and this greatly affects organizational performance.

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Perception affects performance in the following ways;
 In terms of perceptions, what employees perceive from their work situation influences
their productivity. To influence productivity, employers must assess how workers
perceive their jobs.
 Absenteeism, turnover, and job satisfaction have more to do with an employee's
perception of the job. Those individuals who perceive their jobs as negative are likely
to have increased absenteeism, more frequent turnover, and less job satisfaction. The
only way to influence these variables is to understand how an employee subjectively
perceives the workplace.
 Perception influences decision-making within an organization.

Factors affecting perceptions, personalities, and emotions

Our perception, personality, and emotions are influenced by a variety of internal (endogenous)
and external (exogenous) factors that are described below;

a) Perception
As described, perception is the way of viewing or interpreting a particular context. The factors
that affect perception, therefore, revolves around the perceiver, the object or target of
perception, and the context of the situation where the perception is made. This is divided into
internal and external factors

Internal Factors

 Attitudes: This includes the personal feelings that influence the choice in decisions, and
hence affect the perception, such as love or hate towards something or someone.
 Personality: This includes the personal traits of how the person selects the perceptions.
For example, a conscientious person tends to perceive contexts with a greater view or
degree of the context.
 Motives and interests: People also tend to perceive situations depending on what they
need at the moment and hence favour the selections that help with their current needs;
they perceive depending on the motive of their needs.
 Past experience: These are the patterns of occurrences learned in the past, which affects
the current perception. People will always select the perceptions that fit with their past
experiences.
 Expectations: People also tend to choose their perceptions depending on what they
intend to gain from their choice of perception.

External Factors
In an organizational context, the external factors include the size of the percept, the frequency
of occurrence (repetition), familiarity, and intensity. For example, the repetition of an action at
the organization increases its likelihood of perceptual selection and intensity and familiarity.

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 b) Personality
These are the set of behaviours, cognitions, and emotional patterns that characterizes a person.
The factors that affect personality include biological (heredity) factors. These factors are
genetic such as logical power, dexterity, and intellectual capacity. Others include
environmental factors around the organization, such as the nature of the people around the
organization, the culture of the organization, and the personal background.

c) Emotions
Emotions are the strong feelings of love, fear, or anger that drive someone into certain actions.
Positive emotions are crucial in organizational behaviour, which is affected by a wide range of
factors. This includes personality, culture, biological factors such as gender, power, social
roles, and social conventions. These factors suppress or incite emotions. For example, the
subjection to social roles and cultural aspects may repress certain emotions. On the other hand,
biological factors such as sex or gender make the female gender have different emotions than
the male gender.

Importance of perceptions, personalities, and emotions

Perception
 It allows a person to interact with the environment and defines the interaction.
 Its help in understanding human behaviour
 Creates and defines the personal experience of the world around
 Affects and influences productivity at the workplace

Personality
 It determines the strengths and weaknesses of a person
 Helps in developing positive attitudes at the workplace
 Helps in relating better with others
 It helps in gaining recognition and acceptance from the organization and the society
around them.

Emotions
 Emotions influence our behaviours, decisions and actions
 Affects the inter-personal and organizations relations
 Positive emotions facilitate productivity and favourable outcomes

Management of perceptions, personalities, and emotions

The Management of perception revolves around the ability to create impressive behaviours
through conscious actions while being aware of other people's behaviours and the impact it has
on them. Perception management can be achieved through;
 High levels of self-awareness
 Seeking information from many sources for better decisions
 Avoiding perceptual distortions
 Avoiding inappropriate attributions
 Having empathy

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Personality management involves ensuring that everyone at the workplace is catered for
respecting personal boundaries and controlling behaviours to ensure positive correlations. It
involves activities such as;
 Identifying each other's personality types and respecting their personal space
 Building positive relations on mutual virtues
 Having empathy and listening to one another
 Resolving conflicts and fostering engagement
Emotional Management revolves around the ability to realize and readily accept and control
the feelings in yourself or another person, feelings such as anger, excitement, or fear. Measures
of emotional Management includes;
 Clarification of issues before reacting
 Identifying the triggers to various emotions, especially negative emotions, and control
or avoid them
 Respect
 Seeking for third party help to mitigate any tense emotions
 Setting rules at the workplace to uphold ethics and hence avoid negative emotions and
promote positive emotions

Personality management involves ensuring that everyone at the workplace is catered for
respecting personal boundaries and controlling behaviours to ensure positive correlations. It
involves activities such as;

 Identifying each other's personality types and respecting their personal space
 Building positive relations on mutual virtues
 Having empathy and listening to one another
 Resolving conflicts and fostering engagement
Emotional Management revolves around the ability to realize and readily accept and control
the feelings in yourself or another person, feelings such as anger, excitement, or fear. Measures
of emotional Management includes;

 Clarification of issues before reacting

 Identifying the triggers to various emotions, especially negative emotions, and control
or avoid them
 Respect
 Seeking for third party help to mitigate any tense emotions
 Setting rules at the workplace to uphold ethics and hence avoid negative emotions and
promote positive emotions

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Conclusion
This learning outcome covered defining terms, identifying types of personalities, and
establishing the effects of perception, personalities, and emotions to performance, highlighting
actors affecting perception, personalities, and emotions and the establishment of the importance
of perceptions, personalities, and emotions.

Further study

Read more on the budget for the Human Resource function activities from Candela, L.
(2020). Individual Perceptions and Behaviour| Boundless Management.
Courses.lumenlearning.com. Retrieved 25 September 2020.

2.3.8.3 Self-assessment

Written Assessment
1. A teacher appointed you to define the following terms; perception, emotions, and
personalities
A. Refers to individual difference s in characteristic patterns of behaving, thinking, and
feeling
B. Refers to the form of action
C. Refers to the organization, identification, and interpretation of information so as
representing and understanding presented information or the environment.
D. Strong feelings of love, fear, or anger that drive someone into specific actions that
follow perceptions
2. Handy describes one type of culture as based upon the expertise within the organization, as
vested in the individuals within it, and reflected in the way that they must be organized to
meet the needs of the business. Which of the following reflects this type of culture?
A. Role culture
B. Person culture
C. Power culture
D. Task culture
3. You have been tasked with the responsibility of ensuring that the new employees are
introduced or integrated into the organizational culture. What is the name of this process?
A. Orientation
B. Socialization
C. Placement
D. Training

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4. Wanja was recently offered a job in a company with a high collaborative work environment,
where every individual is valued and communication is a top priority. Which type of a
culture does this company has?
A. Clan culture
B. Market culture
C. Hierarchy culture
D. Adhocracy culture
5. State the types of personalities that you have learned
6. Outline some of the ways in which perception management achieved?
7. Suppose you are assigned to explain into details the importance of perceptions,
personalities, and emotions, what would be your response

Case Study
The former Head of Finance of Coptola Limited, a company that deals with Milk processing
has been fired following huge loses by the company. It is suspected that he has been colluding
with some of the junior staff to steal UHT milk from the company and subsequently supplying
it at a lower price than the company. His assistance has been put in an acting capacity in the
department. Apart from the changes h has proposed within the department, he has also
proposed changes that will affect the whole company. Some of the changes are;
interdepartmental Transfers, Installation of a CCTV to enhance security and introduction of an
award for the best worker of the Month. The top management has agreed to his proposal.
Propose a change management approach/theory that the company can use to manage the
proposed changes.

2.3.8.4 Tools, Equipment, Supplies and Materials

 Classrooms
 Lecture Halls
 Chalk Board
 Computers
 Tablets
 Internet
 Library
 Functional Office

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2.3.8.5 REFERENCE

Candela, L. (2020). Individual Perceptions and Behaviour | Boundless Management.

Courses.lumenlearning.com. Retrieved 25 September 2020.

Catenacci, C. (2017). Workplace organizational behaviour part II: Perception | First

Reference Talks. First Reference Talks. Retrieved 25 September 2020.

IT Services, W. (2020). Factors influencing perception (perception process) - about factors

influencing perception (perception process) in tutorial (12852) | Wisdom Jobs India.
Wisdom Jobs. Retrieved 25 September 2020.

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2.3.9 Learning outcome No 8: Manage values and attitudes in the work place
2.3.9.1 Learning activities

Learning Outcome No. 8: Manage values and attitudes in the work place

Learning Activities Special

Instructions

8.1. Definition of values and attitudes Written questions

8.2. Identification of benefits of values and attitudes
8.3. Highlighting of effects of values and attitudes in the work Oral questions
place Observation
8.4. Identification of advantages and disadvantages of managing
values and attitudes in the work place Projects
8.5. Identification of contemporary/emerging issues in the work
place

2.3.9.2 Information Sheet No: 2 /LO 8: Managing values and attitudes in the work place

Introduction
This learning outcome covers definition of values and attitudes, identification of benefits of
values and attitudes, highlighting of effects of values and attitudes in the work place,
identification of advantages and disadvantages of managing values and attitudes in the work
place and identification of contemporary/emerging issues in the work place

Definition of key terms

Values: These are beliefs in what is best or good for the organization and what should happen.
The stronger the values within an organization, the more they influence the behaviour in the
company.

Attitudes: This refers to how an individual’s opinion, beliefs and feelings about the various
aspects of the surrounding. Humans develop attitude towards the food they eat, people they
meet, things they do and almost anything within their vicinity.

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Content/Procedures/Methods/Illustrations

VALUES AND ATTITUDES

Benefits of values and attitudes
Workplace values and attitudes helps organizations comprehend how potential employees will
“fit” into their roles and overall organizational values. Knowledge of values and attitudes can
help the organization to improve its retention of key employees, productivity and engagement,
and decreases in negative outcomes such as employee turnover, management challenges, and
poor organizational and culture fit. Workplace values and attitudes can be used:
 To identify and develop the required skills at all levels of the organization
 To recognize people who help to build the organization’s values and culture
 To reduce employee turnover rates
 To improve recruitment and selection of employees
 To manage role changes, promotions and organizational change
 To reduce management challenges, employer-employee work dissatisfaction, and negative
workplace morale
 To increase retention rates, productivity and employee engagement
 To reduce absenteeism, turnover, lost expertise, lost training resources and customer
dissatisfaction.

Effects of values and attitudes in the work place

Your organization's workplace values set the foundation for the company's culture, and
communicate to the clients what the organization cares most about. It's important therefore that
employees align themselves with the values so that they can display them.

When this happens, people appreciate one another, they do the right things for the right reasons,
and this common purpose and understanding helps people build great working relationships.
Values orientation helps the organization as a whole to achieve its core mission. When values
are out of alignment, people work towards different goals, with different intentions, and with
different outcomes. This can damage work relationships, productivity, job satisfaction, and
creativity within the workplace.
Your workplace values are the guiding principles that are most important to you about the way
that you work. You use these deeply held principles to choose between right and wrong ways
of working, and they help you make important decisions and career choices.

Advantages and disadvantages of managing values and attitudes in the work place
Advantages
 Managing organizational values and attitudes helps to promote healthy growth of an
organization.
 Values in a workplace help to motivate employees. This is because external motivation
strategies may be less effective compared to a routine-based society and work place.
 Workplace values and attitudes build the corporate culture that plays a vital role on
creation of the corporate brand. Good corporate brand image among the public helps to
brand value.

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  A distinct set of value in an organization help to build a strong identity which helps an
organization stand out from its competitors thus giving it a competitive edge over other
organizations.
 Values and attitudes are vital in the continuity, consistency and credibility of value
creation. Well inculcated values and attitudes ensure that everyone in the company is
working towards the same goals and apply the same principles adhering to the same
standards.
 Managing values and attitudes drives the organization towards a common target.

Disadvantages
 Due to diversity among employees, personal values may contradict among employees
or managers thus creating confusion in the organization.
 Controlling values and attitudes of employees might make individual employees
depressed especially if there is more emphasis on organizational values at the expense
of personal values.
 Employees may suffer from imbalanced life due to the forced conformity to a particular
lifestyle in the workplace which may be different form the employee’s individual
lifestyle.
 Change management is challenging in an organization where deep-rooted set of values
and attitudes have been in existence. This may make it even for organization to change
its existing reputation.

Contemporary/emerging issues in the work place

Revolution in Information Technology
Information technology has influenced HRM through Human Resources Information Systems
(HRIS) that streamline the processing of data and make employee information more readily
available to managers. More recently there has been and in the future, there will be impact of
revolutionary computerized information system in the management it covers two primary
areas Application of computer in the managerial decision-making process Use of electronic
computers managerial decision-making process In future, computerized information system
will have increasing impact at the coordinate and strategic levels of organization

Globalization
Globalization refers to an extension beyond national borders of the same market forces that
have operated for centuries at all levels of human economic activity (village markets, urban
industries, or financial centres). It means that world trade and financial markets are becoming
more integrated. Growing internationalization of business has its impact on HRM in terms of
problems of unfamiliar laws, languages, practices, competitions, attitudes, management styles,
work ethics etc. HR managers have a challenge to deal with more functions, more
heterogeneous functions and more involvement in employee’s personal life.

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Mobility of Professional Personnel
One of the interesting facts will be increase is the mobility of various managerial and
professional personnel between the organizations. As individual develop greater technical and
professional expertise, their services will be greater demand by organization in the
environment. This poses a challenge to HR on strategies and policies that will best help retain
employees in the organization without affecting their performance and satisfaction.

Changes in the Economic Environment

This includes examination of the impact of a number of factors on production. Some of the key
factors are the scarcity of raw materials and other inputs including power and electricity,
encouragement of the culture of consumerism, increasing consumer awareness and demand for
quality products, continuing upward trend in the inflationary pressures with decrease in the
purchasing power of rupee and its spiralling effects in the ever-increasing aspirations of
workers for higher wages and other material benefits and mounting costs on the employee
welfare and other benefits. In an inflationary economy, the resources tend to become scarce
and the costs of machine, materials and labour multiply. These push up the capital and running
costs.

Changes in political and legal environment

Changes in political and legal environment means changes in political parties and rules
regulation due to new laws that come and you have to follow all laws while doing business.
Many changes taking place in the legal and political framework within which the industrial
relation system in the country is now functioning. It is the duty of human resource and industrial
relations executives to fully examine the implication, of these changes and brings about
necessary adjustment within the organization so that later utilization of human resource can be
achieved. It is the responsibility of Human Resource manager to anticipate the changes and
prepare organization to face them without any breakdown in its normal functioning

Workforce Diversity
According to Thomas (1992), dimensions of workplace diversity include, but are not limited
to: age, ethnicity, ancestry, gender, physical abilities/qualities, race, sexual orientation,
educational background, geographic location, income, marital status, military experience,
religious beliefs, parental status, and work experience. The future success of any organizations
relies on the ability to manage a diverse body of talent that can bring innovative ideas,
perspectives and views to their work.
The challenge and problems faced of workplace diversity can be turned into a strategic
organizational asset if an organization is able to capitalize on this melting pot of diverse talents.
With the mixture of talents of diverse cultural backgrounds, genders, ages and lifestyles, an
organization can respond to business opportunities more rapidly and creatively, especially in
the global arena, which must be one of the important organizational goals to be attained. More
importantly, if the organizational environment does not support diversity broadly, one risks
losing talent to competitors. Thus, a HR manager needs to be mindful and may employ a Think
Global, Act Local approach in most circumstances.

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Conclusion
This learning outcome covered definition of values and attitudes, identification of benefits of
values and attitudes, highlighting of effects of values and attitudes in the work place,
identification of advantages and disadvantages of managing values and attitudes in the work
place and identification of contemporary/emerging issues in the work place

Further Reading

Read more on in relation to this lesson, learners are encouraged to do more research on
organizational culture and how organizational values contribute to its development.

2.3.9.3 Self-Assessment

Written Assessment
1. Helps us understand differences in fundamental values, attitudes and
behavior between people with different backgrounds.
A. Anthropology
B. Psychology
C. Social Psychology
D. Political Science
2. A is a situation in which an employee must define what right and wrong
conduct.
A. Problem
B. Ethical dilemma
C. Argument
D. Principle
3. Trust and worthiness affect an employee’s access to
A. Dedication and achievement
B. Persuasion and control
C. Power and influence
D. Knowledge and cooperation.
4. Two areas that are influencing and impacting the nature and practice of Human Resource
Management today are the rapid pace of change and .
A. Demographic increase
B. Complexity of the work environment
C. Organizational culture changes
D. Managerial ineptness

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5. Discuss the various ways through which employees express their dissatisfaction at the
workplace?
6. Briefly discuss your understanding of attitudes and why they are important?
7. The business environment in the current era is very dynamic. Organizations are constantly
finding themselves in peculiar situations that force them to re-evaluate their business
models and strategies. These changes in the business are not always welcome by employees
and makes it hard for HR professionals to manage the change within the company. What
do you think are some pf the reasons why employees in an organization oppose change in
the organization?

Practical Question
Learners will be grouped in groups of four each under the guidance of the tutor. Each of the
group members should then identify 3 to 5 personal values.

1. Identify the extent to which values overlap among the group members
2. Members to discuss the source of these values (for example parents, peers, church etc.).
3. Identify at least one company in the country where each member would be most suitable
for the values that he/she holds most dearly.
Resources
1. Furniture (tables and chairs)
2. Company profiles
3. Writing materials and pens

2.3.9.4 Tools, Equipment, Supplies and Materials

 Brochures
 Magazines
 Reference Books
 Journals and publications
 Surveys
 Newspapers

2.3.9.5 References

Anthony, W. P., Kacmar, K. M., & Perrewe, P. L. (2006). Human resource management: A
strategic approach. (5th Ed.) Ohio: Thomson.
Armstrong, M. (2006). A handbook of human resource management. (10th Ed.). London:
Kogan Page.
Dessler, G., Griffiths, J. & Lloyd-Walker, B. (2007). Human resource management. (3rd Ed.).
Frenchs Forest, N.S.W.: Pearson Prentice Hall
Stone, R. J. (2010). Managing human resources. 3rd. Ed. Milton, QLD: John Wiley & Sons
Australia Ltd.

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2.3.10 Learning outcome No 9: Managing work place Stress
2.3.10.1 Learning activties

Learning Outcome No. 9: Managing work place Stress

Learning Activities Special

Instructions

9.1. Highlighting of meaning of stress Written questions

9.2. Identifcation of causes of stress Oral questions
9.3. Highlighting of types of stress Observation
9.4. Analyzing of negative and positive impact of stress Projects
9.5. Application of ways of managing stress in the work place

2.3.10.2 Information Sheet No: 2 /LO 9: Managing work place Stress

Introduction
This learning outcome covers meaning of stress, causes of stress and types of stress
analyzing of negative and positive impact of stress and application of ways of managing stress
in the work place.

Definition of key terms

Stress: Refers to as a feeling of emotional or physical tension. It can come from any event or
thought that makes you feel frustrated, angry, or nervous.

Managing stress: Refers to as set of techniques and programs intended to help people deal
more effectively with stress in their lives by analysing the specific stressors and taking positive
actions to minimize their effects.

Content/Procedures/Methods/Illustrations
Stress
Symptoms of stress
Emotional symptoms of stress include:
 Becoming easily agitated, frustrated, and moody
 Feeling overwhelmed, like you are losing control or need to take control
 Having difficulty relaxing and quieting your mind
 Feeling bad about yourself (low self-esteem), lonely, worthless, and depressed
 Avoiding others

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Physical symptoms of stress include:
 Low energy
 Headaches
 Stomach upsets including diarrhoea, constipation, and nausea
 Aches, pains, and tense muscles
 Chest pain and rapid heartbeat
 Insomnia
 Frequent colds and infections
 Loss of sexual desire and/or ability
 Nervousness and shaking, ringing in the ear, cold or sweaty hands and feet
 Dry mouth and difficulty swallowing
 Clenched jaw and grinding teeth

Cognitive symptoms of stress include:

 Constant worrying
 Racing thoughts
 Forgetfulness and disorganization
 Inability to focus
 Poor judgment
 Being pessimistic or seeing only the negative side

Behavioural symptoms of stress include:

 Changes in appetite either not eating or eating too much
 Procrastinating and avoiding responsibilities
 Increased use of alcohol, drugs, or cigarettes
 Exhibiting more nervous behaviours, such as, fidgeting and pacing

Causes of stress
Stress can be caused by various factors depending on the person. The following are some of
the ways that can trigger stress
 The death of a loved one.
 Money.
 Work.
 Poor health.
 Divorce.
 Loss of a job.
 Increase in financial obligations.
 Getting married.
 Moving to a new home.
 Chronic illness or injury.
 Emotional problem

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Types of stress in an organization
 Psychological Stress
 Psychosocial Stress
 Burnout. An increased stress level at work can lead to burnout
 Acute stress
 Fear-based stress
 Overwork
 Job search stress
 New job stress
 Workplace conflict stress
 Time stress

Negative impact of stress

 A little stress every now and then is not something to be concerned about. Ongoing,
chronic stress, however, can cause or exacerbate many serious health problems,
including:
 Mental problems, such as depression, anxiety, and personality disorders
 Cardiovascular disease, including heart disease and high blood pressure
 Obesity and other eating disorders

Figure 5; bad eating habits from verywellmind.com

 Menstrual problems
 Sexual dysfunction, such as impotence and premature ejaculation in men and loss of
sexual desire in both men and women
 Skin and Hair problems

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Ways of managing stress in the work place
People can learn to manage stress and lead happier, healthier lives. Here are some tips to help
you keep stress at bay.
 Accept that there are events that you cannot control.
 Be assertive instead of aggressive. Assert your feelings, opinions, or beliefs instead of
becoming angry, defensive, or passive.
 Learn and practice relaxation techniques; try meditation. Yoga or tai-chi for stress
management.

Figure 6: Yoga from Shutterstock

 Exercise regularly. Your body can fight stress better when it is fit.
 Eat healthy, well-balanced meals.

Figure 7: healthy food from reg styles.com

 Learn to manage your time more effectively.

 Set limits appropriately and learn to say no to requests that would create excessive stress in
your life.
 Make time for hobbies, interests, and relaxation.
 Get enough rest and sleep. Your body needs time to recover from stressful events.
 Don't rely on alcohol, drugs, or compulsive behaviours to reduce stress.

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 Seek out social support. Spend enough time with those you enjoy.
 Keep a positive attitude.

Figure 8: Stress management from Qminder, com

5 Stress Management Techniques

 Take a 10-minute walk. According to a few experts if you take a walk it will help reduce
endorphins in the system that cause stress.
 Practice mindfulness. Learning to focus on your breathing can help you reduce stress
 Create an exercise regiment
 Write a reflection journal
 Organize yourself.

Conclusion
This learning outcome covered meaning of stress, causes of stress, types of stress, analysing of
negative and positive impact of stress and application of ways of managing stress in the work
place.

Further Reading

Read more on stress management from Horowitz, M. J. (1976). Stress response syndromes.

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2.3.10.3 Self-Assessment

Written Assessment
1. Stress is a condition that has a very big effect on someone’s body that. Which of the
following are the basic sources of stress?
A. The Environment
B. Social Stressors
C. Physiological
D. Thoughts
E. All of the above
2. What thoughts come to the mind when you’re under negative stress
A. You think that you can cope with the situation
B. You think that you cannot cope with the situation
C. You think that everything will get fine eventually
D. You think that you will get hep immediately
3. There are categories of stress. From the following choose the one that are represented by
Aches, shallow breathing and sweating, frequent colds are
A. Physical symptoms of stress
B. Behavioural symptoms of stress
C. Emotional symptoms of stress
D. Cognitive symptoms of stress
4.John was unable to complete the puzzle that he had been working on. The following day,
John continued to build the incomplete puzzle. This is an example of
A. Fear of success
B. external locus of control
C. Zeigarnik effect
D. Controllability
5. People can learn to manage stress and lead happier, healthier lives. Here are some tips to
help you keep stress at bay. Highlight ways of managing stress in the work place
6. Every employee face stress challenge in their daily lives. Outline any 3 types of stress in an
organization.
7. Discuss 6 Types of stress in an organization and how they can be managed

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Case study
A maize mill company in kenya having been consistently profitable for many years, changes
in the market meant the company was making a loss. To regain its leading position in the
industry, it set out to completely restructure its operation. The company also embarked on a
major restructuring programme which involved decentralizing its operations and establishing
regional cost Centres. However, while sales and profitability improved, it was at a slower rate
than anticipated, and although the changes were taking effect, it was at a high personal cost –
employees across the organization were experiencing stress-related problems, including poor
health, increased absenteeism and decreased productivity. A stress analysis established that it
was middle managers who were experiencing the highest levels of stress resulting from the
changes, especially as they perceived events to be beyond their influence or control. A further
analysis confirmed that the restructuring programme had been the main source of stress, which
consequently made it more difficult for employees to cope with changes as they were
implemented. Explain the measures that the you take as the manager in order to improve the
working environment of the employees and also to maintain the high rate of profits.

2.3.10.4 Tools, Equipment, Supplies and Materials

 Regulations, guidelines and strategic plan

 Organization structure, functions, policies and procedures
 Computers and computer software
 Computer servers
 Internet and intranet connectivity

2.3.10.4 References

Folkman, S., & Lazarus, R. S. (1984). Stress, appraisal, and coping (pp. 150-153). New York:
Springer Publishing Company.
Grinker, R. R., & Spiegel, J. P. (1945). Men under stress.
Kahn, R. L., & Byosiere, P. (1992). Stress in organizations.

Selye, H. (1976). Stress without distress. In Psychopathology of human adaptation (pp. 137-
146). Springer, Boston, MA.

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 CHAPTER 3: DEMONSTRATE MANAGEMENT OF HUMAN RESOURCES

3.1 Introduction
This unit specifies the competencies required to demonstrate human resources management. It
involves identify the purpose of human resources management, evolution of human resources
management, demonstrate understanding of evolution of human resources management,
human resources support services, provide human resources support services and addressing
emerging issues in human resources

3.2 Performance Standard

It involves identify the purpose of human resources management, evolution of human
resources management, demonstrate understanding of evolution of human resources
management, human resources support services, provide human resources support services
and addressing emerging issues in human resources as per the work place procedures.as per
the SOPs.

3.3 Learning Outcomes

3.3.1 List of Learning Outcomes
a) Identify the purpose of human resources management
b) Demonstrate understanding of evolution of human resources management
c) Provide human resources support services
d) Address emerging issues in human resources

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3.3.2 Learning Outcome No1: Identify the purpose of human resources management
3.3.2.1 Learning Activities

Learning Outcome No1: Identify the purpose of human resources management

Learning Activities Special Instructions

1.1 Defining of Human resources management Written questions

1.2 Establishing the importance of human resources management as per the
1.3 Identifying Human resources management contribution to Oral questions
organization performance Observation
1.4 Highlighting of main activities, responsibilities and tasks of
human resources management Projects
1.5 Identifying functions of human resources management
1.6 Defining of theories of human resources management and
their relationship to HRM
1.7 Underlining of principles of human resources management
1.8 Outlining of personal qualities needed for human resources
practitioners work

3.3.2.2 Information Sheet No3/LO1: Identify the purpose of human resources

management

Introduction
This learning outcome covers a brief explanation of human resource management, the
importance and contributions of human resource management, the important tasks and
functions carried out in the human resource department, the various theories associated with
human resources and the key principles of human resource management.

Definition of key terms

Human Resource management: Refers to the strategic technique of employee management
within an organization through organizing and controlling so as to maximize employee
performance and achieve competitive advantage.

Personnel Management: This is the approach to management of an employee as an economic

man who works for money or a salary. This differs from the HRM in that human resource
management treats employees as human beings having economic, social and psychological
needs.

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Content/Procedures/Methods/Illustrations

HUMAN RESOURCE MANAGEMENT

Human resource management entails the process of selecting, recruiting, training, organizing
and controlling of employees, the human resource department determines the amount of
compensation and rewards awarded to each member of staff while ensuring employees’
occupational growth and development.

Human Resource Management Process

Human resource management entails the following process
i. Recruitment: This is the process of attracting potential employees to the organization,
it is a way of finding available candidates suitable for an employment position.
ii. Selection: Selection refers to the process of choosing the most suitable, skilled and
qualified candidate for the employment position in the organization.
iii. Orientation: Refers to the planned process of familiarizing the new employees with
their positions, colleagues and the general organizational culture.
iv. Training: Involves the process of educating employees on the necessary skills required
to perform their tasks effectively to the required standard.
v. Performance assessment: Also referred to as performance appraisal, is the act of
reviewing and evaluating the performance of employees from time to time so as to
determine their contribution to the organization.
vi. Motivation: Refers to the different employment factors that push an employee to have
interest in performing their jobs and stay committed to achieving the organizations set
goals.

Importance of human resources management

Human resource management concept is important most especially to managers because while
managing it helps in;
 Prevention of unfair labour practices
 Ensure proper recruitment of the most suitable candidates
 Strategic planning to enable the organization to achieve its objectives.
 Conflict management: Human resource management is responsible for ensuring any
workplace grievance is settled fairly and help both management and employees
understand the importance of a peaceful working environment.
 Compliance; human resource management ensures that the organization is running in
accordance with the governments set employments laws.
 Ensuring occupational safety and wellness of all employees.
 Developing a healthy organizational culture with business values.

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Human resources management contribution to organization performance
Human resource management is necessary for the achievement of organizations objectives as
it helps in performance improvement;
 Through human resource management, the right personnel are distributed to their right
areas of expertise leading to better performance.
 Human resources mainly focus on employees and their development hence ensuring
motivation which leads to efficient performance and reduced costs’
 Through keeping of records, human resource helps the organization with easy access to
information thus saving time.
 Through proper wage distribution, human resources contribute to the financial
performance of the organization.
 Human resource management helps in the development of the organizational structure
since they have complete overview of the organization.
 Human resource through job distribution ensures that each employee is responsible for
something leading to reduced cost and performance.

Main activities, responsibilities and tasks of human resources management

The main activities carried out in human resource management include;
 Human resource planning: Human resource is responsible for planning the future of the
organization, the people it needs, the number of these people and their expertise.
 Recruitment and selection: This involve attracting possible employees to fill a vacant
position within the organization and selecting the most suitable.
 Performance management: Though appropriate feedback and good leadership, human
resource ensures that employees stay committed towards giving the best performance.
 Learning and development: Considering the future needs of the organization, human
resources ensure employees are trained so as to improve their skills.
 Career planning: Engaging employees and allowing for their career growth, human
resource enables employee retaining which leads to a stronger organization in the
future.
 Function evaluation: Human resource through evaluation of employee responsibilities
is able to determine which jobs are similar so that they are rewarded accordingly.
 Rewards: Human resource activities include giving different forms of rewards to the
employees for their contributions to the organization; rewards can be presented in form
of recognition, bonuses, and promotions.
 Industrial relations: It is the responsibility of human resource to maintain a positive
relationship with trade unions and other collective employee unions.
 Employee participation and communication: Proper communication channels are
important for a positive working environment; it is the responsibility of human resource
to ensure employees are timely informed and also heard by the management.
 Health and safety: Human resource ensures the creation and implementation of health
and safety regulations for the employees; they ensure the staff is in proper protective
gear where necessary to avoid accidents.

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  Personal wellbeing: It is important for the human resource to support employees and
ensure mental health within the organization.
 Administrative responsibilities: These include human resource information systems and
personnel procedures.

Human resource management functions

 Planning
 Job analysis and design
 Employee training and development
 Performance evaluation
 Employee reward and compensation
 Recruitment and selection
 Employment relations

Theories of HRM
Human capital theory
The human capital theory brought about by Schultz in 1961 and later extended by Becker in
1964 suggests that human capital is the most important determinant of economic success of
any organization. Human capital contains a mixture of inventions, personality traits, knowledge
and skills, social characteristics and performance abilities which all contribute to production in
an organization hence economic success. In human resource, an organization is considered as
good as its employees; they are what lead to the success and achievement of goals. Becker
states that the human capital management department commonly referred as the human
resource department is what oversees workforce recruitment, management and maximization
through planning, training and analysing. These processes are what lead to performance in the
organization. The following are concepts of human capital which prove that labour increases
production in the company;
 Capital: Capital includes the finances and tangible assets that are used to start a
business.
 Know - how: This refers to the skills and knowledge that one has acquired from
previous experience, such as strategic thinking.
 Quality of life: refers to the well-being of people, such as level of education and health
which are used as the measure of strategies in productivity.
 Productivity: Productivity is the outcome received from each input, it enables
measurement of losses and profits gained.
 Knowledge: refers to the skills acquired through long term experience or inborn
abilities such as leadership.

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Contingency theory
Fred E. Fiedler’s contingency theory of leadership effectiveness was based on studies of a wide
range of group effectiveness, and concentrated on the relationship between leadership and
organizational performance, the theory is guided by the basis that there is no single most
appropriate way to lead an organization and any action taken depends on the situation at the
moment. This is one of the earliest situation-contingent leadership theories given by Fiedler.
According to him, if an organization attempts to achieve group effectiveness through
leadership, then there is a need to assess the leader according to an underlying trait, assess the
situation faced by the leader and construct a proper match between the two.

a) Leader’s trait
In order to assess the attitude of the leader, Fiedler developed the least preferred co-worker
(LPC) scale in which the leaders are asked about the person with whom they least like to work
with. The leaders with high LPC are relationship oriented while the ones with low scores are
task-oriented.
The theory therefore suggested the following;
 There’s no best way of managing an organization
 The (LPC) least preferred co-worker scale, which is used to measure a manager’s
leadership orientation, is the main component of the theory.
 A leader should be able to recognize which management style will lead to the
achievement of the organizational objectives in a given situation.

b) Situational factor
Fiedler goes ahead to state that, the behaviour of a leader depends on how favourable the
leadership situation is and states the factors that determine how favourable the situation is to a
leader.
 Task structure
 Leader-member relations
 Position power

The Configurational Theory

The configurational approach suggests that organization’s human resource management
systems are a collection of interrelated structures, connected processes and common practices
which are best seen in a universal way. This theory is important in getting a clearer
understanding of the organizational structure and its responsibilities while providing more
information on the process of change in the company. Among its major contributions, is the
assumption that the connection existing between performance in the organization and the
layout patterns is not straight because the interconnected designs either divide or multiply the
mixed effect? Delery and Doty suggest that defender and prospector organizations will need a
specific design of human resource management, growth, compensation management and
employment relations.

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Prospector organizations will need internal employment system that is established on
knowledge development and long term hiring while defender organizations will need market
employment system whereby employees are employed for short term contracts and not much
importance is given to development of skills.

Resource Based Theory

According to the resource-based view, there can exist a difference in organization levels, firms
are heterogeneous because they possess heterogeneous resources, this means that organizations
can contain different strategies since they own different mix of resources which may lead some
to maintaining competitive advantage. This theory tries to identify the admirable qualities,
skills and assets that are most likely to lead to a competitive advantage by directing the attention
of the management on the internal resources of the organization.

The resource-based theory is a model that views resources as ticket to a great organizational
performance. Resources that show VRIO attributes (value, rarity, imitability, organization)
enable the organization to attain and maintain competitive advantage; hence rbv supporters
advise that organizations should find their sources of competitive advantage from within other
than focusing on competition.

Resource based view proponents urge that it is better to exhaust external opportunities using
the resources that already exist within than acquiring new skills for any other different
opportunity. The theory gives resources the main task in helping the organization to obtain the
best performance. There exist two types of resources:
 Tangible resources
 Intangible resources

Assumptions of resource-based view

 Heterogeneous: Skills abilities and resources possessed by different organizations
differ.
 Immobile: RBV assumes that resources cannot move from one organization to another
hence a competing organization cannot copy the resources or strategies. Intangible
resources are immobile.

Principles of HRM
For an organization to succeed and achieve its objectives, the following principles are
important;
 Comprehensiveness. This entails complete management of employee’s welfare; the
management should ensure that the health of the employees is considered; equipments
needed for performance are provided and also fair remuneration.
 Cost. Organizations must guarantee that the human resources are compensated
accordingly. The employees reward system must be effective enough to maintain the
running of the organization.
 Organizational change. In all businesses, change is considered constant hence all
organizations should come to terms with the fact that there will always be changes being
made in human resource management so as to achieve better results.

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  Commitment. Every organization has set objectives that they work towards achieving,
for these set goals and objectives to be met, the organization needs a completely
dedicated workforce. Hence it is the responsibility of the management to ensure the
workers are motivated and working to grow the company.
 Control. It is the responsibility of the management to ensure efficiency in employees’
performance, control is therefore necessary for effectiveness in production.
 Communication. Communication is very important in every firm or organization.
Through communication, Companies are able to ensure that there is efficient transfer
of information which is necessary for performance.
 Competence. It is the duty of the management to ensure that the organizations
employees possess skills and expertise in the areas assigned to them so as to achieve
the best results in performance. This is because, the company’s competence mainly
depends on its employees thus continuous training and development is also necessary
to improve the workers skills.
 Coherence. This entails ensuring that all activities carried out within the organization
in managing human resources are in accordance with the organization’s mission and
vision. Hence the human resource department should put more focus on what the
organization requires and the skills that employees poses.

Personal qualities
 Knowledge and expertise
 Communication
 Time management
 Self-discipline
 Trustworthy
 Confidentiality

Conclusion
This learning outcome covered the introduction to human resources, the processes involved,
importance, responsibilities and functions of human resources, the theories associated with
human resources and the principles of human resource.

Further Reading

Read more on other theories in human resource management from Rothaermel, F. T. (2012).
Strat.Mgmt: Concepts and Cases. McGraw-Hill/Irwin

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3.3.2.3 Self-Assessment

Written assessment
1. In resource-based theory, two types of resources are discussed, name one type of tangible
resources.
A. Inventory
B. Reputation
C. Goodwill
D. Credibility
2. In human resource management there exist different types of theories, state one leadership
theory.
A. Resource based theory
B. The trait theory
C. Human capital theory
D. Transaction cost theory
3. The following are processes involved in recruitment, except?
A. Interview
B. Shortlist
C. Select
D. Survey
4. Human resources management is a field that entails different processes of personnel
management, one of these processes is not carried out in the hr department.
A. Controlling
B. Organizing
C. Marketing
D. Planning
5. The following include the responsibilities of human resource in an organization, except?
A. Learning and development
B. Issue purchase orders
C. Career planning
D. Function evaluation
6. As a human resource officer, give 4 reasons for orientation.
7. Briefly state 5 functions of human resource management
8. Human resource management is considered important in organization, briefly state 4
importance of human resource management
9. List the assumptions of resource-based view
10. ‘Human capital is the most important determinant of economic success of any organization’
using the human capital theory, discuss.
11. Explain some of the main responsibilities of human resource management.

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Practical Question
The candidate is required to:
1. Prepare an employee training
2. Development seminar.
Resources
1. Conference hall
2. Furniture (tables and chairs)
3. The days agenda
4. List of trainers
5. Writing materials

3.3.2.4 Tools, Equipment, Supplies and Materials

 Regulations, guidelines and strategic plan.

 Organization structure, functions, policies and procedures
 Computers and computer software
 Computer servers
 Internet and intranet connectivity

3.3.2.5 References

Robert L. Mathis, John H. Jackson (2012). Human Resource Management: Essential

Perspectives
Saha, Agniva (2018). The Impact of Human Resource Management on Organizational
Performance.
Fernando Martı´n-Alca´zar, Pedro M. Romero-Ferna´ndez and Gonzalo Sa´nchez-Gardey
(2005). Strategic human resource management: integrating the universalistic,
contingent, configurational and contextual perspectives.

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3.3.3 Learning Outcome No2: Demonstrate understanding of evolution of human
resources management
3.3.3.1 Learning Activities

Learning Outcome No2: Demonstrate understanding of evolution of human resources

management

Learning Activities Special Instructions

2.1 Familiarization with stages of development since industrial Written questions

evolution Oral questions
2.2 Highlighting multi-disciplinary nature of human resources Observation
management Projects
2.3 Definition of emerging issues in human resource management

3.3.3.2 Information Sheet No3 /LO2: Demonstrate understanding of evolution of human

resources management

Introduction
This learning outcome covers familiarization with stages of development since industrial
evolution, highlighting multi-disciplinary nature of human resources management and
definition of emerging issues in human resource management.

Definition of key terms

Industrial revolution: This was a transformative era in Europe and America that saw marked
major transformation of majorly rural and agrarian societies into industrialized urban societies.
Its experienced changes in the production of good with goods that were previously been crafted
by hands been produced in large quantities with the use of new more efficient and faster
machines and techniques that required less human labour and time.

Multi-disciplinary: HRM is dynamic and involves the application of different approaches and
techniques in the various professional fields. The HR managers make use of different
disciplines to effectively manage the human capital. These disciplines may include psychology,
sociology, economics, communication, philosophy among others. The practice of Human
Resource Management also requires close collaboration and teamwork from other departments
in the organization such as Finance for its success.

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Content/Procedures/Methods/Illustrations

INDUSTRIAL REVOLUTION

Stages of development since industrial evolution

Figure 9 evolution of human resource management from hrm.com

Industrial Evolution Era (19th Century)

This was during the transformative phase when most production plants were being automated
to shift from use of hand crafts to use of machinery. The management of employees was such
that it involved hiring of employees, training and controlling them. Employees were kept under
the control of their masters’ will.

Trade Union Movement Era

With the establishment of factories, employees in the industries started to form unions that
were aimed at fighting for their interests. The trade unions would protect the interests of the
members and deal with grievances that the workers had such as; long working hours, poor
working conditions and increase in wages and other employee benefits. These trade unions
engaged in several industrial actions such as strikes, go slows, boycotts and even walkouts as
their weapon against the employers.

Social Responsibility Era

This was the period between the first decade of the 20th century. Companies in this era started
taking a more humanistic approach to managing employees. The companies started developing
humanistic policies such as reduction of working hours, improvement of the working
conditions and provision of welfare schemes to the workers to control them and weaken their
trade unionism.

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Scientific Management Era
Taylor started developing some scientific approaches to increase their employees’ productivity.
He came up with scientific management techniques that were culminated in his book at the
beginning of the 20th century. He proposed the replacement of the rule of thumb approach to
management with the use of scientific models, advocated for harmony and cooperation among
managers and workers and development of worker.

Human Relations Era

Between 1930 and 1950s, focus was put on the human factor at the workplace and more
emphasis on the determinants of human behaviour. Psychology was used to conduct
recruitment, learning and appraisal. It was maintained that the managers ought to maintain
human relations at work in order to boost employee productivity.

Behavioural Science Era

Protagonists in this era argued that the behaviours of a human highlighted contrary to the notion
that happy workers are good workers. The nature of job and the people were comprehended to
see their behaviour in the working environment. The managers were challenged to use the
untapped potential of their employees.

Systems and Contingency Approach Era

From 1960 onwards, a blend of the multiple variables was used to determine the overall
outcome and productivity of employees. Managers relied on empirical data to manage human
resources.

Human Resource Management Era

Since 1980, a large number of employees started working in the industries. This called for a
more elaborate management of these personnel and use of multidimensional approaches. This
led to emergence of industrial relations department in most companies. The business
environment at this era was very dynamic and competitive and therefore more need to have the
best set of skills, talents, capabilities and knowledge in the companies. This unique need led to
the establishment of the modern management of employees through the HRM department
whose course has been to manage the most important resource, humans or employees. The
employees are no longer seen as physiological, beings but social-psychological beings.

Multi-disciplinary nature of human resources management

It is worth to note that human beings are very different and complex, i.e. economic,
physiological, psychological, sociological and ethical beings. The intensities of these
dimensions of the human factor in employment may differ from one situation to another but
the fact remains that these are the basic things of the human factor in organizations.
Undoubtedly, the physical and mental attributes of human resources are highly pertinent to
organizational performance and productivity.
The HR manager, therefore, plays a crucial role in understanding the changing needs of the
organization and society. Further, he/she faces some challenging tasks in attaining the
employee, organizational and societal objectives with the available resources.

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In addition to it, the technological developments increasing educational standards etc., further
complicate the role of the HR manager. Hence, the modern HR manager should equip himself
with good knowledge of disciplines, Economics, Commerce, Management, Sociology,
Psychology, Engineering, Technology and Law.

Nature of Human Resource Management

The scope of human resources management in the modern days is vast. In fact, the scope of
HRM was initially limited to employment and maintenance of employees and payment of wage
and salary. The scope has gradually enlarged to providing welfare facilities, motivation,
performance appraisal, human resources management, maintenance of human relations,
strategic human resources and the like.

The contemporary nature of Human Resources Management is such that it includes:

 Organization of HRM
 Strategic HRM
 Recruitment and Selection
 Training and Development
 Salary administration/compensation
 Employee retention
 Motivation
 Industrial relations
 Participative management

Disciplines of HRM
Human resource management (HRM) is concerned with all aspects of how people are
employed and managed in organizations. It covers the activities of strategic HRM, human
capital management, knowledge management, corporate social responsibility, organizational
development, resourcing (workforce planning, recruitment and selection and talent
management), learning and development, performance and reward management, employee
relations, employee well-being and the provision of employee services. The overall goal of
human resource management is to;

 Support the organization in achieving its objectives by developing and implementing

human resource (HR) strategies that are integrated with the business strategy (strategic
HRM);
 Contribute to the development of a high-performance culture;
 Ensure that the organization has the talented, skilled and engaged people it needs; create
a positive employment relationship between management and employees and a climate
of mutual trust;
 Encourage the application of an ethical approach to people management

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Emerging issues in Human Resource Management
The management of HR of today is very different from the management of HR ten years ago.
The changing job market, change in technology and legal compliance issues have forced
organizations to accept Human Resource Managers into the strategic levels of management and
become nimble partners in the strategic development of businesses. Among the contemporary
issues in the HR today include;
a) Changing Regulatory Issues and Legal Compliance: Many organizations are struggling
to be legally compliant with the ever-changing employment laws. This has led to many
legal suits, audits and even closure of some businesses. However, companies must
always ensure that the are compliant with local, state and international laws at all times
irrespective of their size.
b) Change Management: Change is inevitable. As an organization grows, the strategies,
organizational structure and its processes grow with it. Most employees experience hard
times adapting to the changes within the organization. It is the role of HR managers to
be the champions of change management and steer the organization in adapting to the
changes and ensure that employee morale and productivity is maintained at its
optimum.
c) Workplace Diversity: The nature of the workplace is such that there exist personnel of
different ethnic, cultural, age, marital, generational and sexual orientation differences.
This diversity if well harnessed can be a source of organizational strength and if not
properly managed can as well be a great threat to the harmonious working relationship
among the staff in the company.
d) Employee Training and Development: One of the greatest sources of motivation to
employees is gotten from investing in them. Organizations are constantly faced with
decisions of how to train and develop their personnel. The balance of who and when to
train has been a major handle.

Conclusion
This learning outcome covered familiarization with stages of development since industrial
evolution, highlighting multi-disciplinary nature of human resources management and
definition of emerging issues in human resource management.

Further Reading

Read more study on personnel management and do more research on the contemporary issues
in HRM.

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3.3.3.3 Self-Assessment

Written assessment
1. James’ Consultancy firm has been tasked to recruit an HR Director for a multinational
company based in Kigali, Rwanda. Which of the below set of skills would you advise them
to look for in a potential candidate for the position. (1 Mk)
A. Communication, Negotiation and intellectual Skills
B. Technical, Interhuman and leading Skills
C. Interpersonal and communication skills
D. Planning, leading and controlling skills.
2. Employees are just commodities which can be purchased, used and disposed off whenever
the owner feels like. Which concept of Human Resource Management has been coined to
demystify this perception that employers have had?
A. Human relations
B. Industrial relations
C. Personnel management
D. HR Development.
3. The success of any HR Manager is the ability to perceive issues from different schools of
thought. Been a trained HR professional, advise your CEO on the best way of addressing
the long debacle of salary increment in the company.
A. Fire all employees who are complaining and hire non-complaining employees.
B. Give into the demands of the employees and give them salary increments once.
C. Conduct a salary survey and develop a competitive pay structure
D. Negotiate with the employees’ representative because the business is struggling and
promise to pay them in the future.
4. What was the main characteristic of the Behavioral Science Era in the evolution of HRM?
A. Formation of trade unions of employees of the same industry.
B. Cooperation and non-individualism in the workplace
C. Research methodologies were used to comprehend the nature of jobs
D. Use of empirical data to manage human resources and jobs
5. In view of the current impact of global pandemic in the world that have left many small
and micro enterprises crumbling financially, highlight some of the key HR strategies that
you would implement in your one-year old bakery business to keep it afloat? (4marks)
6. As an HR Manager, you have been tasked to develop and steer a newly formed HR
Department.in your feasibility study of the company, you realize that millennials form 80%
of the total workforce. Discuss how you would effectively manage this group of personnel
in order to tap the maximum productivity from them. (10marks)

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Practical Question
The learner is required to:
1. Prepare a venue for conducting interviews.
2. Schedule candidates for the interview
Resources;
1. Furniture (tables and chairs)
2. Writing materials for the interview panel
3. Well aerated room, office or boardroom
4. Time clock
5. Access to basic social amenities such as washrooms and drinking water

3.3.3.4 Tools, Equipment, Supplies and Materials

 Regulations, guidelines and strategic plan.

 Organization structure, functions, policies and procedures
 Computers and computer software
 Computer servers
 Internet and intranet connectivity

3.3.3.5 References

Cornelius N. (2001). Human Resource Management: A Managerial Perspective. (2nd Ed.). UK:
TJ International.
Anne-Wil H., Ashly P. (2014). International Human Resource Management. (4th Ed.).
California: SAGE Publications Ltd.
Crawley E., Stephen S., Walsh D. (2013). Introduction to International Human Resource
Management. (1st Ed.). Italy: Oxford University Press.
John A Pearce, Richard B Robinson, 2009, Strategic Management Formulation,
Implementation and Control, 11th Edition

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3.3.4 Learning Outcome No3: Provide human resources support service
3.3.4.1 Learning Activities

Learning Outcome No3: Provide human resources support services

Learning Activities Special Instructions

3.1 Identifying human resource support services Case study

3.2 Drawing of the organization structure of human resource Group Discussions
department Classroom simulations
3.3 Underlining the importance of human resource department
3.4 Evaluating performance of the human resources
management function

3.3.4.2 Information Sheet No3 /LO3: Provide human resources support services

Introduction
This learning outcome covers the human resource support services, the organization structure
of the human resource department, importance of human resource department and the function
of the human resources management in performance management.

Definition of key terms

Support services: A function of the organization that provides internal support to the main
business of the organization.

Organization structure: This is a system that outlines how certain activities are directed in
order to achieve the goals of an organization.

Content/Procedures/Methods/Illustrations

SUPPORT SERVICES

Human resource support services

Human resources are a vital aspect of any organization. Support services are those activities
provided in the human resource department in order to assist in effective and efficient running
of the department. These services include Payroll administration like handling taxes, and
dealing with sick and vacation time. Employee benefits which includes health, medical and life
insurance, Human resource management which includes recruiting, hiring and firing.

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HR organization structure
Importance of organization structure
The HR organization structure provides guidance to all employees by laying out the official
reporting relationships that govern the workflow of the department. An organization structure
provides guidance and clarity on specific employee issues such as managerial authority which
helps in facilitating internal communication, making business decisions, performing required
tasks, providing exceptional customer service and keeping the department running smoothly.
A well-designed organization structure promotes success and facilitates department growth and
profitability. Designing an organizational structure helps in the identification of talent that
needs to be added to the company, ensures production capability to accomplish the department
goals, clearly defines reporting relationships within the department, provides each employee
with a job description and standard of performance, creates a framework for establishing
compensation for each position and provides high-performing employees room for growth.

Components of organization structure

The various components of the HR organization structure are departmentalization, chain of
command, Span of control, centralization and decentralization, work specialization and the
degree of formalization.

Departmentalization
This is the process that groups activities into different departments. These departments are
created so that tasks can be performed by specialization within the department.
Departmentalize also refers to an organization’s formal structure that includes several
departments and positions and their respective relationship with each other.

Objectives of departmentalization
The objective of departmentalization is to:
 Maintain control
 Simplify the operational process in the company
 Group the specialized activities under one umbrella
 Increase the efficiency of management and ultimately the organization
 Fix responsibilities and accountability.
 Departmentalization is an effective grouping that enables meaningful work

Advantages of departmentalization
 It is easy to coordinate different work in the same department.
 Departmentalization results in the integration of work.
 Departmentalization enables utilization of local conditions via low operational costs.
 Simplifies training.
 Utilizes special skills and specialized training to increase personal as well as company
productivity.
 Departmentalization helps the HR department to gain the benefit of specialization.

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  There is a feeling of autonomy as the manager is granted the power to take independent
decisions.
 It increases the chance of growth and expansion.
 Sections are created to fix the role of every person involved. Responsibilities are clear
and precise, and every person is accountable for their action.
 Departmentalization results in better administrative control.

Disadvantages of departmentalization
 As sections continue to grow it creates less adaptability within the department.
 When the HR department groups activities and people in one specific section, there is
little room for flexibility.
 Difficulty in coordination between different sections.
 Less responsibility and accountability as the sections are concerned with their own
space and not the department as a whole.
 There is too much emphasis on specialization.
 Rising conflicts between different sections.

Chain of command
This is an aspect of organizational structure that is meant to show a clear line of responsibility
from the top position to the bottom. It is established so that everyone knows whom they should
report to and what responsibilities are expected at their level.

Importance of chain of command

 It establishes accountability.
 Lays out the department’s lines of authority and decision-making power.
 Ensures that every task has one person assuming responsibility for performance.

Span of control
This refers to the number of subordinates that can be managed efficiently and effectively by a
superior in a HR department.

Types of span of control

 Narrow span of control: This means a single manager or supervisor overseeing few
subordinates which gives rise to a tall organizational structure.
Advantages
 Close supervision.
 Close control of subordinates.
 Communication is fast.
Disadvantages
 There is too much control.
 Many levels of management.
 High costs.
 Excessive distance between lowest level and highest level.

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Wide span of control: This means a single manager or supervisor overseeing a large number
of subordinates which gives rise to a flat organizational structure.

Advantages
 More delegation of authority.
 Development of managers.
 Clear policies.
Disadvantages
 Overloaded supervisors.
 Danger of superior’s loss of control.
 Requirement of highly trained managerial personnel.
 Block in decision making.

Centralization and decentralization

In centralization, there is a hierarchy of formal authority for making all the important decision
for the organization while in decentralization, the decision making is left for the lower level of
organization.

Advantages of decentralization
 Reduces the burden on top executives.
 Facilitates diversification.
 Executive development.
 It promotes motivation.
 Better control and supervision.
 Quick decision-making.

Disadvantages of decentralization
 Problem of co-ordination.
 More financial burden.
 Requires qualified personnel.
 Conflict by putting more pressure on divisional heads to realize profits at any cost.

Advantages of centralization
 Standardization of procedures and systems.
 Facilitates evaluation.
 Co-ordination of activities.

Disadvantages of centralization
 Slows down operations.
 Destroys individual initiative.
 Over burdens a few employees.
 No scope for specialization.

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Work specialization
This is the degree to which an organization divides individual tasks into separate jobs. It allows
the manger to take complex tasks and break them down into smaller, more precise tasks that
individual workers can complete

Advantages of work specialization

 Defined skill set.
 Upward growth.
 Defines quality and excellence.
 Brings trust.
 Increases productivity

Disadvantages of work specialization

 Mastering one skill set.
 Omitted from managerial positions.
 Gets boring.
 Cannot multitask.
 Limited skill set.

Human Resource department

The organization structure of human resource department
The organizational structure should be set as the result of the HR Management Goals and the
defined HR Model. These two components define the importance of HR Processes and they set
clear priorities. The priorities of HR structure should be reflected in the organizational structure
and workforces assigned to particular HR Processes.
The HR Organizational Structure should be as flat as possible. The decision-making
responsibility should be given to the lowest levels of the HR Organization. The employees
should not be seen as accountable in the organization, if they have no authority to make a
decision. The managers should be focused on the development of employees and they should
delegate the decision authority. Too many managers in the structure always delay the decision-
making process.

Importance of human resource department.

The company’s human resource department is responsible for creating, implementing and
overseeing policies between employees and the management team of the company. The role
of the human resource department in a company affects all aspects of the business because
human resource supports employees and employees are the most important resource.

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Human resource department is important in any organization because of the following
reasons:

 Human capital value: The department has a clear understanding how significant
human capital value to the organization’s bottom line is.
 Budget control: This is a major task of the human resource department since it cuts
down excess spending through developing methods for pruning workforce management
costs.
 Training and development: The department provides required training and also
ensuring overall development in the organization. Organizations can benefit a lot from
identifying training needs for their existing staff.
 Conflict Resolution: Human resources managers are trained to handle and resolve
conflicts and resolve positive working relationships.
 Employee satisfaction: With carefully designed employee surveys, developed focus
groups and a proper exist interview strategy, human resources determine what underlies
employee dissatisfaction and find ways to fix it.
 Performance improvement: Performance management systems are developed by
human resources departments in order to ensure employees are able to give their best.
Thy construct performance plans whereby they can usually end up helping employees
to ensure that they are able to perform their very best.

Evaluating performance of the human resources management function

The HR professionals play a critical role in advising management on issues related to employee
performance management and improvement.

Components of a successful performance management process

 Management involvement: Managers are responsible for setting performance
expectations, providing feedback and coaching, and recognizing excellent work.
Managers need to buy into and be an active part of the performance management
process.
 Goal setting: High performing employees have goals that drive their performance.
organization cultures that place an emphasis on goals align employee performance with
the goals. The connection creates engagement because employees see how their work
helps the company.
 Learning and development: Once goals are set, employees need to have the
knowledge and skills to do the work. Organizations that want high performance need
to make investments in employee learning and development. It will allow employees to
accomplish their goals both now and in the future.
 Feedback and coaching: Managers should regularly tell employees about their
performance in terms of what is good, what could be improved and even more
importantly, how to evaluate their own work. When employees can evaluate their own
performance well, they can set their own goals and begin to become self-learners.
 Ongoing conversations: Organizations should create cultures where having ongoing
discussions about performance goals, learning and coaching are happening.

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Conclusion
This learning outcome covered the human resource support services, the organization structure
of the human resource department, importance of human resource department and the function
of the human resources management in performance management.

Further Reading

Read further on designing an effective organization structure by the Bridgespan Group (2009).

2.3.4.3 Self-Assessment

Written assessment
1. Claire spends most of her time at work establishing goals for her staff of fifty employees
and developing procedures for various tasks. In which function of the management process
does Claire spend most of her time? (1 MK)
A. Leading
B. Controlling
C. Organizing
D. Planning
2. Rita is the HR Director of a manufacturing company. She recently undertook research to
identify competitor compensation and incentive plans, information about pending
legislative changes and availability of talent in the labour market for the upcoming strategic
planning meeting. Rita was conducting
A. Environmental scanning
B. An external market survey
C. An employee engagement survey
D. An environmental study
3. As the HR manager of ABC Company, you have been tasked with the duty of drafting an
organizational structure. Among the following purposes, which is not a purpose of an
organizational structure?
A. To coordinate people and resources
B. To organize lines of communication
C. To formalize authority
D. To limit workers’ rights

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4. Seth is in charge of the HR department in his organization, he has noticed inefficiency in
the performance of duties. He therefore decides to divide the job in number of steps, each
of which is completed by an individual. What does Seth aim to achieve?
A. Information sharing perspective
B. Departmentalization
C. Work specialization
D. Collectiveness
5. As the HR Manager in your organization, how do you ensure that performance management
functions effectively?
6. When designing an organizational structure, what are some of the factors to consider in
ensuring it is effective?
7. The relationship between line manager and employees needs to be as strong as it possibly
can be. “What contribution does the line manager and the organization needs to make to
increase individual and collective performance?”

Case Study
The invitation to tender for the new training multimedia package came at just the right time for
the business. Sales of existing products had been rather lacklustre recently and it was felt that
some of the new entrants to the market had taken away what was previously our strong area of
the market. Now, here was an opportunity to move ahead of rivals and develop something with
a unique selling appeal. We had the production capacity and the marketing would follow our
well-known ways of developing customer awareness but who would manage the tender and
just what would we need to produce in order to win such a lucrative contract? Discuss why
empowering employees may get us ahead of the competitor.

3.3.4.4 Tools, Equipment, Supplies and Materials

 Functional office
 Resource person
 Video cameras
 Tablets
 Smart phones
 SD cards and card readers
 TFT screen

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3.3.4.5 References

Armstrong, Michael. (2000). Human Resource Management Practice. Kogan Pagge Ltd. (7th
Ed), London.

Ji-lin, S. U. N. (2002)."The Importance of Human Resource Management in Library Reform

[J]." Library Tribune 5

Saleemi N. A. Saleemi. (2010). Principles and Practice of Management Simplified. Nairobi

Savani’s Book Centre Ltd.

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3.3.5 Learning Outcome No4: Address emerging issues in human resources
3.3.5.1 Learning Activities

Learning Outcome No4: Address emerging issues in human resources

Learning Activities Special Instructions

4.1 Identifying emerging issues in human resource as per the Written questions
SOPs.
4.2 Highlighting effects of emerging issues in human resources Oral questions
management as per the SOPs. Observation
4.3 Analysing and evaluating significant contemporary issues
in human resource management as per the work place Projects
procedures.
4.4 Identifying factors affecting the future of human
resources management.
3.3.5.2 Information Sheet No3 /LO4: Address emerging issues in human resources

Introduction
This learning outcome covers emerging issues in human resource management and highlights
the effects of major emerging issues in human resource management. Additionally, the learning
outcome analyses and evaluates significant contemporary issues in human resource
management as per the workplace procedures.

Definition of key terms

Contemporary issues: Contemporary issues can be referred to as events, ideas, opinions or
topics in a certain subject that have a relevant role in the current society. They are also referred
to as mattes of interest at the present times. An example of a contemporary issue in Kenya is
the concern of police brutality when instilling curfew restrictions.
Emerging issues: Emerging issues are matters that have not been identified but can have
significant effects on people as well as the environment. The issues are considered significant,
but people have failed to give them much attention. These issues can either be positive or
negative as some important opportunities could be lost if they are not identified and handled
appropriately.

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Content/Procedures/Methods/Illustrations

EMERGING ISSUES
Introduction to emerging issues in human resource management.
Human resource management has become an important aspect in the process of achieving
organizational objectives, growth and excellence. As globalization occurs, people are moving
to the information age, and organizations need to adapt to technological change and other issues
related to the process of managing people. Human resource management has established
standard operating procedures that need to be adhered to in the process of human resource
management. Some of the major issues that have emerged include;

 Professionalism
 Technological advancements
 Organizational learning
 Organizational re-engineering
 Knowledge management
 Gender mainstreaming in management
 Disability mainstreaming
 Digital economy
 Excellence models in management
 Corporate social responsibility

Effects of emerging issues in human resources management

Emerging issues have various effects on the human resource management process. Changes in
the economic situation as a result of emerging issues require quick restructuring,
modernization, upgrading to global standards and changing of technology tools used in the
human resource management processes. Emerging strategies also increase the level of
competition as various organization try to adopt new strategies that may address emerging
issues. As a result, the human resource departments are forced to higher new individuals with
the desired skills to enable the organizations to become competitive. At the same time, human
resource management has developed strategies for handling the existing employees by either
compensating them or incurring additional costs for training the old employees.

Globalization is an example of an emerging issue in human resource management. Its

development would result in conflicts which develop as a result of the diversified workforce
due to the differences in values and attitudes towards work. It makes human resource managers
of various organizations to develop diverse strategies of handling people from various setups.
Demands of consumers have changed in the current times' consumers demand innovative
products that have more uses with better quality. If human resource managers identify that this
an emerging trend, they will establish strategies such as total quality management which helps
to improve the quality of the products through the initiative of the employees. Therefore,
emerging trends force human resource managers to adopt strategies that will help the
employees produce products that meet the demand and desired characteristics of customers.

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Advantages and disadvantages addressing emerging issues in human resources
Addressing emerging issues in human resource management has various advantages and
disadvantages. The following are the clear advantages and disadvantages of addressing
emerging issues.

Advantages
 Increases flexibility: Addressing emerging issues enables human resource managers
and human resource departments to become flexible. This helps them to survive and
continue to adapt with the changes that are likely to take place as a result of the
emerging trends.
 Cost-saving: Addressing issues in human resources helps to reduce costs which may
have been incurred in case the human resources failed to address these changes. In times
of emerging issues, the cost of tools required to implement some changes may rise.
However, assessing and addressing the issues will prevent an organization from
suffering from increased costs of tools.
 Saves time: By addressing emerging issues, the human resource department saves time
of its employees. Some drastic changes as a result of emerging issues will require
additional training time. However, assessing the issue will enable the organization to
hire employees who have appropriate skills and carry out on-job training practices
which reduces the time that would have been spent in training employees.
 Helps to address arising needs: As emerging issues develop, they come with various
needs such as an increase in the number of employees requires changes of infrastructure
and adoption of new human resource management strategies. By addressing the
emerging issues, human resource managers can easily address arising needs without
much difficulty.

Disadvantages
 It will require additional costs: Addressing emerging costs will need additional costs
such as research o clearly identify the extent and the effect of the emerging issue to the
company.
 Change of infrastructure: Addressing emerging issues will require human resource
management to change its infrastructures such as tools for working, equipment used for
training, and even the number of people it requires. These changes come with a cost
which makes the process complex.

Analyse the significance of identifying emerging issues

Identifying emerging issues has various significant roles in an organization’s human resource
management. By systematically identifying emerging issues, organizations acquire a better
chance of capturing exiting market opportunities, testing the existing risks and developing
innovating ideas for their employees. In current times, when there is a business challenge,
organizations re-evaluate their human resource capabilities and structures to assess how well
the organization is ready to compete with other external forces. Therefore, identifying
emerging issues places organizations at better positions utilizing opportunities.

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Identification of emerging issues also enables human resource managers to act with confidence.
Once the managers have assessed the possibility of emerging trends, they obtain the muscle to
take any uncertainties. Those who fail to identify emerging trends will be at a loss since it will
take them much time to develop muscles for the necessary changes. However, identification of
emerging issues places human resource managers at a position where they can assess scenarios
and acquire confidence in their practices.

Human resources management

Human resource management is a management function in an organization that entails the
whole process of managing people to help the business or organization accomplish its
objectives. It entails the process of recruiting, selecting employees, providing orientation and
imparting training and development. It also covers employee compensation and welfare issues
among the employees.

Contribution to organization performance

Human resource management helps to increase organizational performance through
developing the skills of employees through training. When the employees of an organization
acquire appropriate skills, they become effective in their roles which enhances their
productivity. Additionally, it improves the organizational competitiveness as quality
performance increases.

Human resource management helps organizations retain talented and skilled employees
through better compensation strategies. Once the organization has managed to retain skilled
employees, it is able to produce quality products which helps the organization attract and retain
loyal customers. Human resource management also enables organization to become
competitive using HRM strategies. Organizations can utilize their human resource
management to assist their suppliers and customers which helps them attain good relations with
them and enhances the reputation of the organization.

Analysing and evaluating significant contemporary issues in HRM

The contemporary business environment has various issues that affect human resource
management. Some of the major contemporary issues in human resource management include
globalization, economic and legal environment, workforce diversity, technological
developments and changes in educational backgrounds of employees. Globalization has
created contributed to significant changes in the human resource management practices. Due
to globalization, organization have varied target customers. For businesses to meet the demands
of the customers in various places around the globe, the human resource management takes the
initiative to employ people from diverse backgrounds to help the business accomplish its
intended purpose.
Technological advancement is also among the contemporary issues in human resource
management. In the current times, human resource managers are using technology and other
applications to gather and collect information about skilled people.

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This makes it easier for the human resource departments to carry out the recruitment process.
In other areas, technology has replaced the need to hire many employees since robots can carry
out the work of employees.

Therefore, the human resource has less work or has been forced to lay off some of its
employees. Other current issues in human resource include the desire to accomplish
Professionalism in various duties, managing existing knowledge, gender balance in
employment developing strategies to cater for people with disabilities. Addressing these
contemporary issues will enable human resource managers gain a competitive advantage in the
current economic and human resource environment.

The factors affecting the future of human resources management

Globalization: Globalization has affected human resource management in various ways,
currently, organizations have to higher individuals from diverse backgrounds and from
different geographical areas. Globalization has increased the responsibilities of human resource
since the managers have to learn strategies of handling people from diverse backgrounds.

Technology: Technology has impacted the human resource department in various ways.
Human resource management has adopted strategies that make HR practices efficient and
effective using technological advancements. Technology has also enabled human resource
managers to post jobs online, carry out interviews online and select employees through online
platforms. This has made it easy to overcome the challenge of boundaries and movement.

Professionalism: Professionalism requires human resource managers to display expertise in

their activities. Therefore, managers should have a high level of competence that reflects clear
application of special education and experience. Professionalism also requires that all
employees follow a professional code of conduct and carry out their roles as professionals.

Organizational learning: Many employees are experiencing skills gap due to changes on the
roles and responsibilities. Human resource management has a responsibility to establish
organizational learning to enable employees acquire the right skills for the specific tasks in an
organization.

Organizational re-engineering: Human resource management has the responsibility to

respond to complexities that arise in an organization. Reengineering focuses on developing
new strategies through which a business can accomplish its objectives. For this to take place,
the employees have to be involved and it is the role of the human resource management to find
ways through which it can develop ideas for organizational engineering to fit those of human
resource needs.

Knowledge management: Knowledge management in human resource entails the practices of

centralizing information and HR documents, and policies that relate to the employees of an
organization. It also entails the ways through which employees can share skills among
themselves to improve organizational performance. HR managers must also develop strategies
that can help employees share their knowledge and help improve organizational outcomes.

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Gender mainstreaming in management: Gender mainstreaming in management is a strategy
that has been established to push for equal treatment of people from all genders. The human
resource management of an organization has a responsibility to create strategies where it can
hire people and assign them jobs without considering the issue of gender. In the current times,
women are doing some jobs that were considered specifically masculine. HR managers need
to recognize these changes and integrate them in their management practices.

Disability mainstreaming: This refers to a process through which managers integrate people
that were formerly considered disabled and unable to carry out specific tasks. The HR
department has to take this role and develop programs that promote equal distribution of work
or development of special tools that can help disabled individuals work in all organizations
without being stigmatized.

Digital economy: Digital economy is one of the factors influencing future human resource
management. A digital economy is an economy founded on digital computing practices in
doing business. The future of human resource is threatened since some businesses will have to
reduce their physical employees as they will be doing business using digital platforms. Most
markets will be based on the internet and managers need to prepare themselves for the same.

Excellence models in management: Excellence models in management are those strategies

and frameworks that help an organization to focus its thought and actions in a systematic and
structured way. HR managers need to find out the particular models that they need to apply in
their organizations to enhance job performance.
Corporate social responsibility: Corporate social responsibility is a management concept that
helps businesses and organizations to be socially responsible by integrating social and
environmental concerns in their business practices. The human resource management ensure
that organizations adopt a policy on corporate social responsibility and programs that will
enable the business to become socially responsible.

Conclusion
This learning outcome covered emerging issues in human resource management and highlights
the effects of major emerging issues in human resource management. Additionally, the learning
outcome analyses and evaluates significant contemporary issues in human resource
management as per the work place procedures.

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Further Reading

1. Read more on the skills that human resource managers need to survive amidst the
contemporary human resource issues.
2. Read more on examples of companies that have managed to assess and identify
emerging issues in human resource management and how they benefited from
addressing the emerging issues.

3.3.5.3 Self-assessment

Written assessment
1. Assume that Boston Company has realized and addressed some of the emerging issues in
human resource. Which of the following statement describes the benefit it will acquire from
that practice?
A. Increases flexibility
B. Increases employee turnover
C. Advances organizational reputation
D. Reduces management costs
2. In a certain study, students were asked to mention examples of emerging trends in human
resource management. They made the following observations, which of their observations fails
to meet an example of an emerging issue in human resource management?
A. Entrepreneurship
B. Technology
C. Globalization
D. Knowledge management
3. Kiambu institute of business management wants to identify the best term that illustrates
involvement of all genders in work environment. Some of their students mentioned various
terms but only one mentioned the most appropriate term. The following were their answers.
Identify the answer that was the most appropriate
A. Gender balance
B. Gender equity
C. Gender mainstreaming
D. General equity

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4.Human resource management has various contributions to an organization. Mr Man, the
managing director of Brains with Concepts, a writing company wishes to know only one of
the ways in which human resource management can help his company. As a student help
him choose the right answer on how HR can help him.
A. It can help him increase sales
B. It can help him retain talented employees
C. It can help him open other businesses.
D. It can help him reduce business risks.
5. Your friend from the field of Information technology has asked you to explain how
technology impacts human resource technology, what would be your best response
6. As a human manager on an international company, which strategies will you adopt to
reduce conflicts among employees
7. As a human resource student of Kisii National Polytechnic, explain the various factors that
affect the future of human resource management

Practical question
You are required to

1. Create a skit where one of you is human resource manager and the rest are employees.
2. Present a strategy in which you can learn from one another.
Resources
1. Classroom
2. Books
3. Pens
4. Computers

3.3.5.4 Tools/equipment/materials

 Charts
 Felt pens
 White board
 Computers

3.3.5.5 References

Horwitz, F., Budhwar, P., & Morley, M. J. (2015). Future trends in human resource
management in emerging markets. In Handbook of human resource management in
emerging markets. Edward Elgar Publishing.

Ruona, W. E., Lynham, S. A., & Chermack, T. J. (2003). Insights on emerging trends and the
future of human resource development. Advances in Developing Human Resources,
5(3), 272-282.

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 CHAPTER 4: COORDINATE PERFORMANCE MANAGEMENT

4.1 Introduction
This unit specifies the competencies required to coordinate performance management within
human resource function in an organization. It includes identifying organizational performance
objectives, developing departmental work plans, carrying out periodic appraisals, initiate
correction/performance, manage and review performance interventions, reward and sanction
performanceand initiate performance improvement programmes.

4.2 Performance Standard

It includes identifying organizational performance objectives, developing departmental work
plans, carrying out periodic appraisals, initiate correction/performance, manage and review
performance interventions, reward and sanction performanceand initiate performance
improvement programmes as per Sops, per the work place policies in line with the
organizations strategic plan, in line with their departmental work plans, as per the organization
procedures, as per the work place policies, according to organizations procedures and based on
the worker’s performance.

4.3 Learning Outcomes

4.3.1 List of Learning Outcomes
a) Identify organizational performance objectives
b) Develop departmental and individual work plans
c) Carry out periodic performance appraisal
d) Manage reward and under performance
e) Initiate performance improvement programmes
f) Explore alternative approaches to performance management

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4.3.2 Learning Outcome No1: Identify organizational performance objectives
4.3.2.1 Learning activities

Learning Outcome No1: Identify organizational performance objectives

Learning Activities Special Instructions

1.1 Familiarization with the organization’s Written questions

mandate.
1.2 Identification of deliverable objectives for the Oral questions
performance period and their respective Observation
activities
1.3 Identification of output for each activity, its Projects
indicator
1.4 Documentation of output

4.3.2.2 Information sheet No4/LO1: Identify organizational performance objectives

Introduction
This learning outcome covers understanding organizational goals, identification of key
expectations in relation to laid down institution objectives for particular period, activities
output identification based on the core objectives and specific documentation of the
organization policies and procedures on what is expected and whom to perform the tasks.

Definition of key terms

Organization: An organization is a set of body such as institution, company or an association
that includes a group of people with specific objectives which is determined by their
performance.
Mandate: It is the authority/official command granted to do something where the employees
are the organization representatives towards the achievement of set objectives through
accomplishing the assigned tasks.

Policy: A policy entails guidelines, rules and principles which are set by an organization to
enable them achieve their overall long-term objectives.

Training: Refers to as the process by which people learn specific skills and knowledge to
enable the improve performance in their task.

Development: Is the act of initiating positive change, growth or progress for better
performance improvement.

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Content/Procedures/Methods/Illustrations

ORGANIZATIONAL PERFORMANCE OBJECTIVES

Familiarize with the organization’s mandate.

The organization mandate is to identify, evaluate and develop performance objectives of the
workforce. The most crucial assignment for every employee in all organization is to have a
clear oversight and understanding the main objectives of the company. It is important for better
performance amongst the employees within the organization.

Deliverable objectives for the performance period and their respective

Introduction to performance management system

This is the continuous process of the organization management to identify, evaluate, measure
and develop well defined goals for the employees. An organization with realistic objectives has
better performance and has an added competitive advantage over the organization with
unrealistic goals. This is due to failure of the workforce to meet the set performance standards.

Importance of performance management

 Its helps in aligning the organizational objectives with the individual objectives such
that is ensure no conflicting issues.
 It enhances the skills and development of the workforce by the help of top management
through training and development of employees in order to match them with the skills
required for better performance plans.
 Evaluating performance standards versus the plans helps on tracking the progress of the
organizations in terms of its set objectives.
 With performance management effective communication amongst individuals and
teams is enhanced which results to alignment of ideas, planning and fulfilling the
organization objectives.

Methods of staff performance management

 Performance contracting: It is strategy by which an organization agrees to hire a
system to ensure clarity and standardization of the performance of the particular
organization under the provided guidelines and responsibilities.
 Balanced score card: A score card is a strategic performance management tool used
to link the organization objectives to its actions. It translates the organizations
objectives that is mission and vision to actual operations and strategic planning. This
model was developed and demonstrated by Robert Kaplan and David Norton,

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Figure 10: Balanced score card from max--pedia

Kaizen: Kaizen is a business strategy for continuous improvement through change which is
adopted by organization to improve its productivity, management, effectiveness, safety and
waste reduction resulting to high performance improvement

Elements of kaizen
 Teamwork
 Personal discipline
 Improved morale
 Quality circles
 Suggestions for improvement

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Figure 11: kaizen from techtarget

Conclusion
This learning outcome covered the organizational performance objectives introduction,
definition of terms, organization, mandate and policies. It also highlighted the familiarization
on performance management briefly and touches on its importance to an organization.
Workforce, training, development, standards, task were defined key terms used in performance
management and finally the performance contracting, balanced score card and kaizen were
explained as tools used for staff performance management.

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Further Reading

Read further on balanced scorecard from Van Vliet, V. (2010). Balanced Scorecard, from
Tools Hero

4.3.2.3 Self-Assessment

Written assessment
1. XYZ Company in Nzoia a sugar is experiencing unrealistic performance objective, therefore
the top management suggests to look at the Human Resource deliverables that influence
the strategic success of the organization. Which of the following factors does not affect
performance objectives (strategic success) of the XYZ Company?
A. Negative workforce mindset
B. Poor technical knowledge
C. Undefined standards
D. Effective communication
2. The ABC management want to do formal learning to its employees to promote
organizational performance. Which of the following methods does apply to formal
learning?
A. Coaching
B. Job rotation
C. Mentoring
D. Action learning
3. As a worker you experience conflict in your team, employees are blaming each over poor
management of the organization which is resulting to low productivity due to poor
performance in the organization. Whom should you report the matter?
A. Immediate supervisor
B. Chief Executive Officer
C. To colleagues
D. Human Resource Manager
4. You have just been dismissed in an organization from personal misconduct by your
immediate supervisor. From your view which of the following choices provided below do
you think the supervisor should have done?
A. Report to the disciplinary committee
B. Beat you up
C. Give written warning
D. Forgive you

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5. A company invites you for a one-day workshop, as a Human Resource consultant highlight
to the employees 2 HR practices relevant to performance management.
6. An organization want to combine several learning methods to train its employees and
improve the performance quickly. Which method can your advice the management to
apply?
7. Performance management entails learning and development as part of training employees,
being a human resource specialist explain to the management on, how to conduct different
methods of training?

Practical Question
You are required to;
1. Demonstrate how to set HR performance Scorecard to an entrepreneur.
Resource
1. Computer
2. Printer
3. Printing materials

4.3.2.4 Tools, Equipment, Supplies and Materials

 Writing materials and pens

 Organization policy manual
 Charts and boards
 Computer
 Printer
 Printing materials

4.3.2.5 References

Armstrong, M. (2009). A Handbook on Human Resource Management Practice, 11th ed.

Palgrave
Cole, G. A. (2002). Personnel and Human Resource Management, 5th ed. Continuum London:
York Publishers.
Elnaga, A. & Imraan. A. (2013). The Effect of Training on Employee Performance. European
Journal of Business and Management.
Malina, M. A. and Selto, F. H. (2001). Communicating and Controlling Strategy: An Empirical
Study of the Effectiveness of the Balanced Scorecard. Journal of Management
Accounting Research

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4.3.3 Learning Outcome No2: Develop departmental and individual work plans
4.3.3.1 Learning Activities

Learning Outcome No2: Develop departmental and individual work plans

Learning Activities Special Instructions

2.1 Preparation of respective departments their work plans Written questions

2.2 Cascading of departmental objectives for the performance
period to individual employees. Oral questions
2.3 Setting up of Individuals their targets and preparation of Observation
their work plans
Projects

4.3.3.2 Information Sheet No4/LO 2: Develop departmental and individual work plans

Introduction
This learning outcome covers preparation of respective departments their work plans,
cascading of departmental objectives for the performance period to individual employees and
setting up of Individuals their targets and preparation of their work plans.

Definition of key terms

Organizations strategic plan: This refers to the process of an organization developing its
direction in the near and distant future in terms of goals and objectives they would like
achieved, making decisions that will support the achievement of the objectives and allocating
resources towards the attainment of the identified objectives and goals.
Work plan: This is a tool that helps a supervisor identify the tasks to be done, assign roles to
the team members in the department and identify ways to track the various milestones and work
deadlines to ensure they are accomplished within set deadlines.

Content/Procedures/Methods/Illustrations
Work plan
Work plans are work tools that help departmental heads to rally around their team members for
the achievement of set goals and objectives.

How to develop a work plan

Work plans can be developed by following the below steps;
i. Identify the work that needs to be done
ii. Narrow down and list the goals and objectives of work plan
iii. Assign roles and responsibilities to each staff member
iv. Execute the work plan

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 v. Track performance
vi. Evaluate and report on work plan

Elements of a work plan

A good work plan contains various elements which make it likely to succeed at task
management and execution.

How to identify a good work plan.

 Scope statement: This is where the work plan states the work that will be carried out in
a general way. The scope statement may also include the specific tasks that each team
member is expected to carry out.
 Time limits: This is the timeframe within which the goals and objectives of the work
plan should be accomplished in. This should also include the timelines for review of
performance within the implementation of the plan.
 Budget: This addresses the financial resources if any that will be needed for the
implementation of tasks contained in the plan.
 Supervisory structure: This indicates who specific team members report to and overall,
who the project team lead is.
 Strategies: This shows the ways in which tasks and responsibilities can be met in the
most efficient and effective manner to accomplish the tasks.

How to align individual, departmental to corporate work plan

Communicate clearly organizational goals to ensure that all individuals within the organization
understand what the corporate work plan is so that they are able to relate this to both
departmental and individual work plans. Involve the employees in the setting of individual and
departmental plans which should mirror the corporate work plans. This can be done through
various meetings to brainstorm and get ideas from the staff. Targets for the individuals should
be enlarged to capture the departmental targets which then mirror the corporate targets to be
achieved. After this, management support should be sort as this will ensure that bottlenecks in
resource allocation are removed and the work plans can then be implemented without financial
glitches. Employees should also be supported by their supervisors to understand how the
achievement of corporate plans will trickle down to them eventually in regards to their benefit
packages. It should also be communicated to all that while the work plans are well thought out
and are final, changes can be made in the case of a drastic change in the external or internal
business operating environment or an Act of God. The last step should be to set up mechanisms
to ensure regular communication between the officers responsible for the corporate plan, the
departmental heads and the employees.

How recruitment enables corporate plan achievement

Recruitment is the attracting and sourcing for qualified candidates for various vacant roles
within the organization to do various tasks. Recruitment is the backbone of talent within the
organization as recruiting the right fit enables the organization to have qualified workforce.

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This therefore means that for work plans to be developed in a professional way and the
execution of the same is done in a seamless way. For each position that needs to be filled, a job
description should be established that details the job specifications and the person
specifications that details the required skills and character traits that the role needs for excellent
work delivery.

Once this has been done and the advertisement sent out for interested and qualified candidates
to apply, long listing is done followed by shortlisting for the various interview stages. The
interviewing panel should thus ensure that during the interview they look for the candidate with
the most proximity to the requirements of the job description and people specifications. The
candidate selected should also be a good cultural fit for the organization as it is easier to have
a cultural fit than train a candidate after on boarding from scratch as this is both time and
financially draining.

This therefore means that the candidates selected during recruitment will be the ones tasked
with the work plans formulation and implementation. Qualified competent candidates with the
right attitude towards work. This should also mean that candidates should also be selected who
are intrinsically motivated so that they do not have to wait for external motivation like good
salary benefits.

Importance of creating work plan

 Charting Direction: Creating direction that the organization is headed towards both in
the short term and long terms as well in regard to goals and objectives.
 Identifying Obstacle: Identifying challenges that can prevent the organization from
attaining its goals and objectives.
 Ensuring Accountability: Ensuring that individual tasks are done as agreed upon and
any lapses are explained
 Financial control: Prevents wastage of resources since they are budgeted for in advance.
 Basis of appraisal work plans form the basis of appraisals at work since supervisors are
able to gauge work done satisfactorily, work unfinished and work undone and take
appropriate action.

Departmental objectives
Departmental objectives for the performance period are cascaded to individual
employees.
The departmental objectives should be set by the management then communicated to the
individual staff members so that they understand their individual roles and what is expected of
them. The communication process should be clear to ensure that it is understood what is
expected of every one at an individual level as well as at a departmental level. Performance
should be emphasized as a non-negotiable since under performance puts at risk the meeting of
the overall departmental goals and objectives. Timelines for review of performance should also
be communicated by the departmental head to other staff members so that they can appraise
themselves.

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Targets
Individuals set their targets and prepare their work plans in line with their departmental
work plans.
To ensure that the integration process of individual and departmental aligning is seamless and
the execution is done as per the quality standards set, performance targets should be set at the
individual level after the departmental head has provided direction. This is the process of
setting down goals and objectives on a personal scale that should mirror the departmental goals.
To ensure that quality of work is not compromised, the targets should be agreed upon by the
employee and departmental head so as to standardize quality. Personal goals should be set to
enable staff take individual responsibility for their work and performance.

Conclusion
This learning outcome covered preparation of respective departments work plans, cascading of
departmental objectives for the performance period of individual employees and setting up of
individuals targets and preparation of their work plans.

Further Reading

Read on How recruitment enables corporate plan achievement from Kiechel, Walter (2010).
The Lords of Strategy. Harvard Business Press.

4.3.3.3 Self-Assessment

Written assessment
1. Jane has recently been hired as the Chief Strategy Officer of a Microfinance Bank in Nairobi.
One of her deliverables on her Job Description which she is to do within the first 100 days
in office is to align the departmental work plans to the corporate work plan. Which of the
below should be her first step to undertake?
A. Hold meeting with management to see ways of alignment
B. Develop alignment by herself and submit it to management for implementation
C. Borrow aligned work plan document from her friend who works for competitor
microfinance
D. Delegate work to sub ordinate

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2. As the departmental head of Operations, a staff member comes to you with a grievance.
The staff member narrates that the colleague has been uncooperative with work projects
that require his input so that work can be done well. As the operations lead, how would you
help resolve the grievance raised by the staff member in your department as concerns the
work dispute at hand?
A. Tell the staff to go and discuss with the colleague they are in a dispute with
B. Call the colleague and hold a dispute resolution meeting.
C. Refer to the work plan to see schedules assigned to each staff
D. Ignore staff complain
3. You are given the strategy lead role at your organization and asked to develop a 5-year
strategic plan. As the team lead, who are the members of staff you should not include in
the committee to spearhead the process?
A. Chief Executive Officer
B. Departmental heads
C. Strategy Consultant
D. Office administrator
4. In your opinion, what would not be an internal constraint in the process of creating
functional workplans?
A. Time constraints
B. Disputes between team members
C. Financial limits
D. Political temperatures in a nation
5. Assume you are a departmental head required to develop a work plan for your department.
How would you go about it?
6. Identify the importance of formulating a work plan
7. Show how effective communication skills can be useful in avoiding disputes that may
arise as a result of the process of creating work plans and aligning both departmental and
corporate work plans.

Practical Question
1. Candidate is required to formulate a work plan for the Human Resource department.
Resources
1. Pens
2. Plain writing paper

4.3.3.4 Tools, Equipment, Supplies and Materials

 Plain paper
 Binding materials
 Pens
 Resources and documentation used in the workplace.
 Workplace policies and procedures.
 Organization work plans.

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4.3.3.5 References

Bradford and Duncan (2000). Simplified Strategic Planning. Chandler House.

Kiechel, Walter (2010). The Lords of Strategy. Harvard Business Press.

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4.3.4 Learning Outcome No3: Carry out periodic performance appraisal
4.3.4.1 Learning Activities

Learning Outcome No3: Carry out periodic performance appraisal

Learning Activities Special Instructions

3.1 Agreement on Appraisal intervals. Written questions

3.2 Determination of methods of appraisal. Oral questions
3.3 Conduction of appraisal. Observation
3.4 Continuation of performance feedback. Projects
3.5 Initiation of correction/performance interventions

4.3.4.2 Information Sheet No 4 /LO 3: Carry out periodic performance appraisal

Introduction
This learning outcome covers the agreement on appraisal intervals, determining the methods
for appraisal, conducting the appraisal, continuation of performance feedback and initiation of
correction/performance interventions.

Definition of key terms

Appraisal: Is the act of assessing someone or something. It is also a process for improving
company performance by developing performance of teams and staff. It is mostly done by
managers.
Feedback: Is the response of the information to an inquiry, task or experiment.

Content/Procedures/Methods/Illustrations

APPRAISAL INTERVALS
This is a process which ideally should be done at regular intervals through formal meetings to
assess the situation of someone or something. This process requires good preparation by both
parties that is the appraiser and appraise.

Range
 Monthly
 Quarterly
 Mid-year
 Annually

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Introduction to performance appraisal system
It is a system that manages the employee performance process in an organization to determine
their job performance. It gives the guidance to the staff on their development and training
needs. Through this system the management can identify the achievements and shortfalls in
performance, and henceforth make the guidance for future improvements.

Methods of performance appraisal

There are different methods used for performance appraisal depending with the organization.
There are six main methods which are usually used,
Management by objectives. (MBO): This method is where the both managers and employee
together identify, plan, organize and communicate the objectives to work on during a certain
period of the appraisal. After identifying the objectives and set clear goals, both the managers
and employees meet regularly to discuss the progress. During this meeting they will try to see
if the objectives are specific, achievable, measurable and realistic. After the end of this period
the employees will be judged by their results and rewarded by increase in salary or promotion
for success and transfers or further training by failures.

How to implement a successful MBO program.

 Goals should be expressed in specific, measurable terms.
 Every goal should have a clear description and plan to accomplish it.
 To determine how progress should be measured and how often.
 Agree on the correction actions to be taken if the progress is not positive.
 Each goal at every level should be related to the objectives of the organization.

Reason why the MBO can fail.

Lack of involvement of top management, unclear MBO programs and inadequate corporate
objectives.
a) 360-Degree Feedback: This is a multidimensional appraisal performance method that
evaluate an employee using the feedback collected from the employee contacts in line of duty.
This method consists of these five integral parts
 Self-appraisal: Through self-appraisal the employees get a chance to identify their
weakness and strength.
 Peer reviews: It helps to determine the ability of employees to work well with a team
among them when the hierarchy is removed from the picture
 Managerial reviews: These are reviews done by the managers. It includes the individual
ratings awarded by the supervisors.
 Customer or client reviews
 It includes the both internal and external clients who interact with the specific employee
regularly. Their reviews can evaluate the performance of an employee better.
 Subordinates Appraisal Manager (SAM): This is the upward appraisal component of
the 360-degree feedback
b) Assessment Centre Method: This method enables the employee to know how others
observe them and get a clear picture of how they look at them and the impact it has on the
performance.

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c) Behaviourally Anchored Rating Scale (BARS): It brings out both the quantitative and
qualitative benefits in the process of performance appraisal. It compares the behavior of the
employee with performance.
d) Psychological Appraisals: Psychological appraisals help to determine the hidden potential
of the employee. It’s more of focusing on an employee future rather than the past. It is
conducted by the qualified psychologists.

Performance appraisal tools

The following are tools used by the organisations to conduct the performance appraisal

 Ranking Method: This tool rank the position of employees in order. The rank of one
employee is done against other employees or group according to their performance.
 Forced distribution method: This is where the raters allocate percentage to different
categories like excellent, good and bad.
 Critical incident techniques: In this method the managers prepares the list of effective
behavior and ineffect behavior of employees.
 Checklists and weighted checklists: This tool employs the technic of having large
numbers of statements that describe the specific job. Every statement has a scale or
weight attached to it. And then the score is a warded to the rating list from all
statements.

Advantages and disadvantages of Staff Performance Appraisal System (SPAS)

Advantages
 Performance improvement: It helps to improve the performance of the employee as it
analyses and evaluates opportunity factors.
 Corrective actions: Through the appraisal system deficiency of employees can be
detected and corrected.
 Development of employees: The appraisal system determines which employees need
more training and gives the strength and weakness of an employee
 Promotions: It helps the management to make the promotions, rewards and transfers.
 Motivational
 Career planning.

Disadvantages
 Contrast error: This error occurs when the rating is done without taking account the
performance standard, like comparing the performance of employee with the past
performance.
 Ratter bias: This can happen when the ratter is bias in terms of race, sex, appearance,
religion and favourism.
 Central tendency error: This is when all the employees are rated within a narrow range,
assuming that all employees are of average level.
 Leniency
 Sampling error: If small sample of work is used to rate.

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Continuous performance feedback
It refers to frequent communication about the employees on their performance as opposed to a
once a year event like the appraisal.

Merits of maintaining continuous performance feedback

 It helps nature the friendly relationship in an organization
 The productivity of the organization is enhanced
 Projects take less time to be completed
 Continuous performance feedback increases the efficiency of the employees and the
job is done very well.
 It keeps the employees in high morale by which they remain loyal to work and
institution.

Evaluation of performance appraisal

 Summative evaluation (end of year): Summative evaluation is the assessment which is
done at the end of the year
 Periodical: This is the employee report card from the manager acknowledging the work
done in specific time and the scope for improvement.
 End of project

Correction/performance interventions
The five ways to manage under performers are as follows.
 Identifying and agree the problem Analyze the feedback and obtain agreement from the
staff and the feedback should be provided by managers.
 Should establish reasons for the shortfall- The manager should not crudely blame the
staff rather both manager and staff jointly to identify the facts that contributes to the
problem.
 Should Decide and agree on actioned required, The staff can take steps to change
behaviour and improve skills
 Should provide training, coaching and guidance required to enable agreed actions to
take place
 Managers and staff should monitor performance to ensure timely feedback is provided
and agreed on any further actions that are necessary.

Conclusion
The learning outcome covered the performance appraisal, introduction and methods of
performance appraisal, performance appraisal tools and lastly continuous feedback to the staffs.

Further Reading

Read more on performance intervention Rumelt, R P (1984) Toward a strategic theory of the
firm, in Competitive Strategic Management, ed R Lamb, Prentice-Hall, Englewood Cliffs, NJ

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4.3.4.3 Self-Assessment

Written assessment
1. As Human Resource manager who have been evaluating individuals according to
performance of the staff in your Organization. What are the aims of carrying out
performance appraisal?
A. Motivating and rewarding employees to work best.
B. Focusing on the staffs on the right things to do.
C. Maximizing the potential of the staff to benefit themselves and the company.
D. To increase workload to the least performing individual in the organization.
2. Identify the characteristics of the performance appraisal as Human resource personnel
while managing performance in workplace?
A. Use of rating
B. Often linked to pay
C. Its bureaucratic
D. Annual appraisal
3. As Human resource professional, indicate how often you will be carrying the
performance appraisal to the staff working in Finance department?
A. Annually
B. Monthly
C. Quarterly
D. Daily
4. You have been newly inducted in a manufacturing company as Human resource consultant.
Give the merits for continuous performance feedback that you will start in the Company?
5. How would you manage the underperformers in the organization?
6. As Human resource manager, give a scenario where you will use 360-Degree Feedback as
Criteria for Success in your Organization.

Practical task
As Human Resource Consultant you have been appointed to investigate on how Kenya Pipeline
has been losing billions of Moneys due to underperforming of some employees. What are the
criteria will use to do make sure you have 360-degree feedback on the staff?

Resources
1. Computer
2. Pens
3. Policies and regulations
4. Booklet

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4.3.4.4 Tools, Equipment, Supplies and Materials

 Computer
 Pens
 Stationery
 Policies and regulations
 Booklet

4.3.4.5 References

Ulrich, D and Brockbank, W (2005b) Role call, People Management, 16 June, pp 24–28

Walker, N (2004) Creating a talent mind-set: a five-step roadmap, Strategic HR Review, 3 (6),
pp 20–23
Work Foundation (2003a) Maximizing Attendance, Work Foundation, London

Youndt, M A (2000) ‘Human resource considerations and value creation: the mediating role of
intellectual capital’, Paper delivered at National Conference of US Academy of
Management, Toronto, August

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4.3.5 Learning Outcome No4 Manage reward and under performance
4.3.5.1 Learning Activities

Learning Outcome No 4. Manage reward and under performance

Learning Activities Special Instructions

4.1. Familiarization of organization’s rewards and sanctions Written questions

policy.
4.2. Determination of types of rewards and sanctions. Oral questions
4.3. Reviewing of performance indicators. Observation
4.4. Rewarding of different categories of good performance.
4.5. Sanction of underperformance. Projects

4.3.5.2 Information Sheet No 4/LO 4. Manage reward and under performance

Introduction
This learning outcome covers familiarization of organization’s rewards and sanctions policy,
determination of types of rewards and sanctions, reviewing of performance indicators,
rewarding of different categories of good performance and sanction of underperformance.

Definition of key terms

Sanction: This is a punishment instituted to people who are not obeying the rules to make the
conform to the set rules and laws.

Rewards: These are items/things that are given to people to acknowledge their achievements,
determination or hard-work towards delivering the desired outcome.

Content/Procedures/Methods/Illustrations
Organization’s rewards and sanctions policy
Importance of rewards and sanctions
 Rewards are important because they: increase the level of employee engagement,
employees are able to passionately identify themselves with the company and the
results expected from them.
 Rewards enhance better employee satisfaction- employees enjoy their work better and
less complains re received.
 Team cohesiveness is enhanced- employees feel get more sense of responsibility and
associate better rewards with their teams.
 With better employee engagement, absenteeism and work -related stress is reduced
 Increased productivity for the organization- well rewarded and motivated teams achieve
better results.

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Importance of Sanctions
 Sanctions are used to enhance good behaviour, from the human anatomy human beings
fear negative consequences, so if they are aware that their actions will have negative
out-comes they refrain away from the behaviour

Forms of rewards and sanctions

Forms of Rewards:
 Intrinsic and Extrinsic Rewards: Intrinsic rewards are the non-tangible these include
but not limited to Promotions, Recognition and a personal career growth. Extrinsic
rewards are the rewards that can be seen upon being received, they include: Gifts, Salary
raises & Bonuses

Financial and Non-financial Rewards

Financial rewards are monetary and are given to employees in-terms of e.g. bonuses; Non-
financial rewards are non-monetary and are mostly in form of benefits e.g. Gift cards,
Certificates of recognition.
Advantages of Rewards & Sanctions
 They improve the expected outcomes.
 They right behaviour are encouraged
 Due to achievement of better results we have employees who are overall satisfied and
happy.
 Employees develop more confidence even in their execution of duty.

Disadvantages of Rewards and Sanctions

 Increased pressure, there is increased pressure for everyone to perform extemporarily
in order to receive the recognition.
 Sometimes they affect the performance, some individuals are unable to perform without
the rewards. No rewards result of low performance.
 Eventually employees get used to the Rewards and Sanctions hence they cease to have
the desired outcome.
 Sometimes the employees are more attached to the reward they will receive other than
understanding the role and the outcomes expected in the long run.

Types of rewards and sanctions

 Extrinsic: These are the visible rewards given to employees and they usually have
monetary value e g. Bonuses, Salary increment
 Written sanctions: It’s is well outlined written punishment or penalty used for
enforcing obedience.
 Verbal sanctions: These are punishments that are communicated by word of mouth.
 Promotion withdrawal: This is when an individual requests that they are withdrawn
from being considered for a promotion.

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Performance Management
 Performance indicators: These are the elements which measure the success of the
organization on the activitis or projects the organisation chooses to undertake.Different
department have different performance indicators but all these should contribute to the
overall goal of the organisation.The performance indicators should be tracked
frequently, they should be measured against a set target and there should be records to
show overall performance on the Perfomance Indicators
 Sanctioning of underperformance: This involves calling out poor performing
employees. E.g. subjecting the employee to a slow career growth, whereas the better
performing peers are given the first opportunity for promotions and other better
opportunities.

Contemporary issues in performance management

 Work life balance: Work life integration plays a major role in enhancing good
performance. Employees need to time for their families and also time to engage in co-
curricular activities that way employees are able to relax and rejuvenate after a day’s
work.
 Technology/virtual offices: This enhances flexi- working hours- employees are able to
work offsite with a more flexible schedule because the commuter is no longer an issue.
Further employees get to spend more time with their loved ones.
 Diversity management: Organizations hire employees from different backgrounds. This
means that they have different Cultures, Values and Beliefs. Diversity management
looks to helping the individuals embrace each other’s difference and achieve even better
results by tapping into the different schools of thought.

Categories of good performance.

Rewarding of different categories of good performance- For each category of employees find
out which type of reward they would prefer;
 Sanction of underperformance: This should be done in a humane way that does not fully
demotivate the individual. E.g. Do not call out an individual’s poor performance while
in a meeting or a group. Create sessions with the individuals whose performance is not
satisfactory.

Conclusion
This learning outcome covered familiarization of organization’s rewards and sanctions policy,
determination of types of rewards and sanctions, reviewing of performance indicators,
rewarding of different categories of good performance and sanction of underperformance.

Further Reading

Read more on diversity Management to understand the advantages and disadvantages of

embracing diversity management in an organization.

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4.3.5.3 Self-assessment

Written assessment
1. Organization XYZ has been struggling to introduce a performance management system to
their employees. In-order to get buy in from staff at all levels, state the best approach that the
organization should use?
A. Use the managers to force employees to participate and communicate negative
consequences to those who do not participate.
B. Communicate to the staff the importance of performance management and the expected
outcome of engaging in performance management.
C. Hold the managers responsible for their direct report’s performance.
D. Reward only those who participate in the Performance Management program.
2. Employees in organization XYZ have been complaining that the feedback they receive from
their managers usually has a recency effect and does not capture work done for the whole year.
A. They should have a Performance Management System that gives timely feedback
preferably on a quarterly basis.
B. The managers to stop giving feedback at all.
C. The organization should stop using the Performance Management system
D. The organization should copy the feedback channels that other organizations are using.
3. Through using a performance management system, organization XYZ realized that some
employees showed very high potential while being hired, yet their current performance was
not desirable. In-order for the employees to do better, state the best the best approach that
would be used to improve on their performance.
A. Reduce the employee’s salaries.
B. Through the training needs analysis, identify which areas the employees need to be
trained in-order to empower them to do better.
C. Bring in new employees and give them more responsibilities to relieve off the existing
staff of some of the responsibilities.
D. Constantly calling out the poor performers publicly in meetings e.g. Departmental
meeting, Organizational Townhall meetings.
4. Organization XYZ implemented a performance management system for their corporate
staff. In-order to justify to management the importance of implementing the
performance management across the organization, state ways on how this outcome will
be achieved.
A. Get a performance management tool that is cheaper in terms of cost.
B. Lobby some of the senior managers to get their buy in and influence the decision of
the other managers.
C. Measurably demonstrate how performance management has impacted the
employees and their contribution towards achievement of the business targets.
D. Impose the use of the performance management system onto the rest of the business.

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5. State some of the factors to consider while choosing a performance management system.
6. Organization XYZ wants to invest in a performance management system, list some of the
features of a good performance management system.
7. Highlight the importance of having a working performance management system?

Practical task
The manager is supposed to choose a performance management system:

1. Develop a performance appraisal system

Resources
1. Book
2. Laptop
3. Office
4. Records
5. Employee details

4.3.5.4 Tools, Equipment, Supplies and Materials

 Other developed Performance Management System tools
 Writing Materials e.g. flowcharts, pens
 Data management dashboards
 Book
 Laptop
 Office
 Records
 Employee details

4.3.5.5 References

Cole, G. A. (2002). Personnel and Human Resource Management, 5th ed. Continuum London:
York Publishers.
Elnaga, A. & Imraan. A. (2013). The Effect of Training on Employee Performance. European
Journal of Business and Management.
Malina, M. A. and Selto, F. H. (2001). Communicating and Controlling Strategy: An Empirical
Study of the Effectiveness of the Balanced Scorecard. Journal of Management
Accounting Research

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4.3.6 Learning Outcome, No5. Initiate performance improvement program.
4.3.6.1 Learning Activities

Learning Outcome No 5. Initiate performance improvement programmes

Learning Activities Special Instructions

5.1. Identification of performance improvement programmes. Written questions

5.2. Identification of individual employees whose performance has
been sanctioned. Oral questions
5.3. Identification of employees are on the performance Observation
improvement programmes.
5.4. Evaluation and monitoring of employees performance. Projects

4.3.6.2 Information Sheet No4 /LO5. Initiate performance improvement programmes

Introduction
This learning outcome covers identification of performance improvement programmes,
iidentification of individual employees whose performance has been sanctioned, identification
of employees is on the performance improvement programmes, evaluation and monitoring of
employees performance.

Definition of key terms

Programs: These are planned related activities or actions which have a specific long-term aim.
Policy: These are a set of guidelines that are used as a basis for making decisions.

Content/Procedures/Methods/Illustrations
Performance improvement programmes
Introduction to performance improvement methods
Performance improvement methods are used to measure the output of a particular process
against the expected output, assist in coming up with ways of identifying the problems and
recommending ways to increase the efficiency of the process.

Performance Improvement Methods include:

a) Planning: This involves setting goals and establishing objectives against which
performance is measured against. Performance planning aims to
 Communicate the responsibilities which an individual has to perform on a daily
basis

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  Bring clarity to the role- individuals understand exactly what outcomes are
expected from them
 Building the employee’s capacity. Planning helps build on the competencies
required while doing the job.
 With planning, individuals can also outline their career development plan.
b) Coaching: This involves helping other people learn in ways that let them keep growing
in their career. They are equipped with the right tools, knowledge and opportunities that
they need to fully develop themselves to become better.
c) Performance Appraisal: The Individual performance is formally documented and
reviewed regularly to establish the overall contribution to a company.

Importance of performance improvement methods

Mentoring: This is the process where a more experienced person guides and trains a less
experienced person into the job.

 Positive company culture: Mentoring fosters a learning and growth culture, his create
teams of people who feel satisfied and happy at work.
 Diversity in leadership: Many organisations use mentoring to increase gender and
ethnic diversity in leadership roles, this brings a balance for the minority groups
 Knowledge sharing: Mentoring is an effective and low-cost way for senior employees
to pass on knowledge of the industry and organisation to younger staff. The young staff
gain confidence when facing difficult decisions because they have somebody who they
can always turn to.
 Employee engagement and retention: Both the mentors and mentees develop better
satisfaction rates within the organisation hence are less likely to leave.
 Positive company outlook-this gibes the organisation better chances while doing
recruitments. Other than the salary the candidates will be interested to know what else
the company can offer.
 Gaining more contacts: Mentors assist in networking with other contacts who could be
helpful in making the business more successful

Coaching: This involves helping an individual to unlock their potential to better their own
performance. Coaching focuses on assisting the individuals learn on their own rather than
teaching them.

Importance of Coaching:
 Individuals are empowered and encouraged to take up more responsibility
 Increases employee and staff engagement
 Improves individual performance
 Helps identify and develop high potential employees
 Helps identify both organizational and individual strengths and development
opportunities
 Demonstrates organizational commitment to human resource development

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  Assists with succession planning.

Training: Training presents a prime opportunity to expand the knowledge base of all
employees, but many employers in the current climate find development opportunities
expensive. Employees attending training sessions also miss out on work time which may delay
the completion of projects.

Importance of training
 Improved employee performance: Employees who receive the necessary training
perform their jobs better.
 Improved employee satisfaction and morale: Employees feel valued and supported to
delivering in their jobs.
 Strengthen skills that need to be improved on: Most employees will have some
weaknesses in their workplace skills, which a training program helps address.
 Consistency: A robust training and development program ensures that employees
have a consistent experience and background knowledge.
Increased productivity: Increased efficiency in processes will ensure project success
which overall increase the expected output.
 Increased innovation in new strategies and products: New ideas can be formed as a
direct result of training and development.
Reduced employee turnover: Staff are more likely to feel valued if they are invested
in and therefore, less likely to change employers..
Enhances company reputation and profile: Helps to develop your employer brand and
make your company a prime consideration for candidates who are looking to upscale
their skills.

Role of human resource in performance improvement programme

A performance improvement plan is used to define the major areas of concern in an employee’s
performance, outline the expectations and then give an induvial a chance to show improvement.

Role of Human Resource

 Assists in documentation of the ongoing conversations between the employee and their
manager. These conversations capture all issues leading to the poor performance of the
employee.
 Writing up the Performance Improvement Programme: HR will work collaboratively
with the supervisor to develop the PIP since they already have the templates. They assist
the supervisor’s to tailor make them to fit an individual’s tasks and responsibilities.
 Presenting the PIP to the individual: Assisting the managers on the correct wording to
use while communicating to the employee about the programme. It is also important to
have HR as a witness of that conversation between the Supervisor and the employee.
 Facilitating the improvement of the employee’s performance by providing the required
resources

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Identification of individual employees whose performance has been sanctioned.
Employees whose performance has been sanctioned does not meet the standards of the
organisation.
 They are disengaged
 Demotivated
 They are not willing to give feedback as and when required

Monitoring and evaluation

Monitoring and evaluation is used to assess the performance of projects and it aims at
improving the current & future delivery of outcomes. We however have a few differences
between monitoring & evaluation:

Table 5: Monitoring and evaluation table

Monitoring Evaluation

This is a continuous process throughout the This is done in phases e.g. Before the projects
program begins, halfway into the project and while
ending the project

It is usually conducted by the internal staff On most occasions external agencies are
engaged in the evaluation process.

Information to be used for monitoring is Information to be used for evaluation is

most acquired from internal documents e.g. mostly acquired from External
monthly reports, minutes of the meetings documentation is included e.g. annual
reports to bench- mark against, the
consultant’s reports

The results from Monitoring is used The results from the evaluation are used both
internally e.g. by the managers of the staff internally and externally e.g by staff, the
involved with the program funders

Performance improvement methods

a) Training and retraining: Training is the learning process when an individual or a
group of people learn a new skill to enable them work better. Retraining is conducted
on a regular basis to constantly remind the individuals to avoid scenarios of them
forgetting and also factor in any changes as they occur e.g. changes in use of
technology.
b) Resource allocation: This entails developing a plan for use of the, materials that are
available for use in a project to meet the overall organizational goals. For successful
resource allocation, managers should always consider this
 Know your resources: Create a profile for all the resources that you have. The
better you know them the better you will assign them to projects that they can
best perform.

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  Have a routine: Set up regular check ins to get a sense on how they are
progressing.
 Identify the resources: Have a sense of exactly what is required for a particular
project
 Measure time: Consider how much time is used for different tasks, this way you
will identify which resources are enough for that task.
c) Job rotation: This entails moving the employees between different jobs within the
organization

Table 6: Job rotation

Merits of Job Rotation Demerits of Job Rotation

It allows individuals to explore other Employees take a lot of time to accomplish

interests and ideas tasks since they are learning on the job

It leads to identification of skills and attitudes If one does not understand the role, they
develop a lot of stress and anxiety

Keeps away fraudulent practices since one is Even as results are delivered the time wasted
barely at on job for long is not considered

d) Alignment of skills: This entails matching up the competency levels to the work which
the individuals will deliver the desired outcome.
e) Job enlargement: This means increasing the scope of a job by adding its range of
duties and responsibilities. It however within the same level. E.g. An employee may be
required to develop their own work plan which was previously done for them by their
manager.

Adoption of performance improvement methods

Once organizations realize that there is a lapse between actual and expected performance, they
should adopt ways to improve the performance. They include but not limited to:

 Practice continuous learning

 Giving frequent feedback, management should also accept feedback from employees
 Recognize achievement
 Build better relationships across the organization

Separation: This is when the employment contract between the employer and employee comes
to an end.

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Other employee motivation methods
 Create a culture of recognition
 Managers should empower their teams -this encourages them to try new ideas.
 Prioritize work life integration
 Be mindful about the employee’s wellness
 Invest in employee personal development
 Evaluation of performance improvement methods: This is the process where
employee’s performance & productivity is measured against preset outcomes.

Conclusion
This learning outcome covered identification of performance improvement programmes,
iidentification of individual employees whose performance has been sanctioned, identification
of employees is on the performance improvement programmes, evaluation and monitoring of
employees performance.

Further Reading

Read more on different ways to motivate employees from Scott, D., Scott, L. M., & Goldwater,
B. (1997). A performance improvement program for an international‐level track and field
athlete. Journal of Applied Behaviour Analysis, 30(3), 573-575.

4.3.6.3 Self -Assessment

Written assessment
1. Organization ABC intends to introduce performance management techniques to their staff.
State the best approach they would use to identify the technique that would work best
A. Conduct employee survey and get views from all employees
B. Get opinions of the managers to represent all employees
C. Choose a few of the employees to get their opinion
D. Enquire what other organizations are doing
2. Employees in organization ABC is struggling with resource allocation, management
advised managers to design a way to ensure that the allocation is done fairly. Identify the
best way which managers would achieve this outcome?
A. Allocate resources in the order of seniority level
B. Allocate the resources in the priority of completion of tasks.
C. Measure the efficiency in the use of resources, how much time is taken up to
complete a task and the impact the outcome has on the overall output.
D. Leave it to the employees to decide what resources they require

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3. Having a highly motivated workforce is a high contributing factor to better performance.
Organization ABC wanted to come up with ways to measure their employee’s motivation
levels. Identify which factor would help them understand the true position of the company.
A. Evaluating the employee engagement levels e.g. how employees give and receive
feedback, the flow of communication, how employees associate with the
organization.
B. Benchmarking against other organization in the same sector
C. Interviewing the employees to give their opinion
D. Assessing the employee turn -over rate.
4. In the recent month’s organization ABC has noticed a great decline in the overall
organization productivity, how would they boost the productivity back to the desirable
levels.
A. Conduct a training need analysis, to identify the skill gaps that exist within the
employees and how the gaps will be closed.
B. Hire more staff to complement the existing number of staff.
C. Exit the existing staff
D. Lower the employee’s targets
5. State some of the activities that would make a performance improvement program a success.
6. Organization ABC wants to determine the success rate of the Performance Improvement
Program. State some of the key indicators.
7. A highly motivated workface is a major success factor for any business. Discuss the benefits
of motivating the employees in an organization.

Practical task
You are required to;
1. Develop a Performance Improvement Plan
Resource
1. Writing Materials e.g. flowcharts, pens
2. Documents to guide on the legal requirements
3. Policies and guidelines

4.3.6.4 Tool/Equipment/materials
 Performance Improvement Programs tools- e.g. process maps
 Writing Materials e.g. flowcharts, pens
 Documents to guide on the legal requirements of the process.
 Policies and guidelines

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4.3.6.5 References

Ferrer, R., Martin-Loeches, I., Phillips, G., Osborn, T. M., Townsend, S., Dellinger, R. P., &
Levy, M. M. (2014). Empiric antibiotic treatment reduces mortality in severe sepsis
and septic shock from the first hour: results from a guideline-based performance
improvement program. Critical care medicine, 42(8), 1749-1755.

Levy, M. M., Dellinger, R. P., Townsend, S. R., Linde-Zwirble, W. T., Marshall, J. C., Bion,
J., & Parker, M. M. (2010). The Surviving Sepsis Campaign: results of an international
guideline-based performance improvement program targeting severe sepsis. Intensive
care medicine, 36(2), 222-231.

Shaukat, A., Oancea, C., Bond, J. H., Church, T. R., & Allen, J. I. (2009). Variation in detection
of adenomas and polyps by colonoscopy and change over time with a performance
improvement program. Clinical Gastroenterology and Hepatology, 7(12), 1335-1340.

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4.3.7 Learning Outcome No 6. Explore alternative approaches to performance
management
4.3.7.1 Learning Activities

Learning Outcome No6. Explore alternative approaches to performance management

Learning Activities Special Instructions

6.1. Identification of alternative approaches to performance Written questions

management. Oral questions
6.2. Approaching assesment of the use of alternative to Observation
performance management. Projects

4.3.7.2 Information Sheet No4 /LO6. Explore alternative approaches to performance

management

Introduction
This learning outcome covers identification of alternative approaches to performance
management and approaching assesment of the use of alternative to performance management.

Definition of key terms

Performance management: This is the process of ensuring that a set of activities and outputs
meets an organization's goals in an effective and efficient manner. It is a tool that helps
managers monitor and evaluate employees’ work.

Human Resource Management Approach: Refers to as the strategic approach to the

effective management of people in a company or organization such that they help their business
gain a competitive advantage.

Self-managed teams: This is a group of employees that is responsible and accountable for all
or most aspects of delivering a service. Employees are assigned tasks depending on their
specialist skills or the functional department within which they work.

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Content/Procedures/Methods/Illustrations

ALTERNATIVE APPROACHES TO PERFORMANCE MANAGEMENT

Self-managed teams
This is a group of employees that is responsible and accountable for all or most aspects of
delivering a service. Employees are assigned tasks depending on their specialist skills or the
functional department within which they work.

Benefits of self-managed teams

 Innovation: The employees have the freedom to review and improve working practices.
 Effective decision making: Self-managed teams can develop more effective decision-
making skills.
 Increased productivity: Teams work towards a common goal and are responsible for
their own actions.
 Improved customer satisfaction: Self-managed teams benefit organisational
performance through improved sales figures and customer service.
 Commitment: Employees become more involved in projects as a direct result of having
increased independence and responsibility.
 Motivation: Employees have shared responsibility, so members are accountable for
their actions.
 Increased compatibility between employers and employees: The team is mutually
supportive, and members learn from each other instead of approaching the team leader
for advice.

360degree feedback
A 360-degree feedback is a process through which feedback from an employee's subordinates,
colleagues, and supervisor, as well as a self-evaluation by the employee themselves is gathered.

Advantages of 360 Degree Feedback

 Creates Self-Awareness: 360-degree feedback gives employees a much better self-
awareness of their own strengths and weaknesses, which motivates them to take up the
journey towards self-improvement.
 Identifies Training Gaps: The analysis indicates the vacuum of skills existing in a
particular team or team member.
 Gives Insight into Employee’s Work: The main objectives of 360-degree performance
appraisal for employers is to really understand an employee’s role in the company,
beyond what they see in the outcomes of tasks.
 Increases Transparency Within the Organization: When it’s done well, 360 review
allows your staff members to improve in key areas that might be limiting their upward
career path or actually causing major conflict within a team.

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Disadvantages of 360 degrees feedback
 Side-lines Positive Feedback: Martin feels that some managers can be tempted to use
360-degree feedback to concentrate on finding negative aspects of an employee’s
performance, rather than celebrating and developing positive aspects.
 Increases mistrust with the manager: If the manager does not communicate what they
learned or what they will do to address the feedback, then those that participate feel that
it was just a useless exercise, and nothing will change.
 It is time consuming: It takes up a lot of time, both from fellow team members and from
HR.

Informal feedback
Managing employee performance is not only restricted to formal appraisal interviews and
feedback sessions. Employees also receive feedback by:
 Socialising outside work
 Approval from co-workers and supervisors.
 Recognition from management

Alternative approaches to performance management

 The informal check in-they are regular, it is designed as a 2way conversation and the
format is more flexible.
 The constant focus on outcomes.
 Holistic 360 degrees review- they address a whole range of factors.

Conclusion
This learning outcome covered identification of alternative approaches to performance
management and approaching assesment of the use of alternative to performance management.

Further Reading

Read more on the alternative approaches to performance management.

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4.3.7.3 Self-Assessment

Written assessment
1. While deciding the performance management approach to use, identify the factors that you
should consider
A. The number of staff
B. The opinion of the managers
C. What approach other organizations are using.
D. The cost that will be incurred
2. In performance management when should feedback be given to staff?
A. Only when there is an issue that needs to be addressed.
B. on a monthly or quarterly basis, to ensure that employees get timely feedback.
C. Feedback should be given at the end of the year.
D. Only when managers deem it necessary.
3. Employees in organization XYZ have not been forthcoming in giving the required
feedback when required. Identify a way in which this would be achieved.
A. Encourage informal ways of feedback giving
B. Just take sample feedback from those who give feedback
C. Get feedback from their managers instead.
D. Check historical data and take it as current feedback
4. After a series of performance management reviews employees have development trust
issues with their managers claiming that they don’t receive any action after the
performance review. Identify ways through which this perception can be changed.
A. Encouraging managers to act on the feedback they receive from the performance
management exercise
B. Stop the performance Management
C. Not allowing employees to give feedback
D. Not taking into consideration feedback given by the employees.
5. Employees find it easy to informally channel their feedback, list how informal feedback
is particularly advantageous to employees:
6. In organisation set up who are the major stake holders in performance management
7. Performance management should be embraced by all organizations. Highlight some of the
advantages of performance management.

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Practical Question
1. The Candidate is required to design a survey to help evaluate the impact of Performance
Management in the organization.
Resources
1. Writing materials
2. Internet
3. Laptop/ smart phone

4.3.7.4 Tools, Equipment, Supplies and Materials

 Writing materials
 Internet
 Laptop/ smart phone

4.3.7.5 References:

Basarab, Dave. (2011 March). Forecasting the value of training. Performance Improvement,
50(3), 22-27.
Kirwan, Cyril, & Birchall, David. (2006 December).

Flanagan, Mary Jane. (2010 December). Measuring the effectiveness of L&D. Training
Journal, 62-66.

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 CHAPTER 5: CORDINATE LEARNING AND DEVELOPMENT

5.1 Introduction
This unit specifies the competencies required to coordinate learning and development in an
organization. It involves carrying out training needs assessment, preparing capacity building
programme and calendar, conducting capacity building, coordinate coaching and mentoring
programme, and enhancing knowledge management, conducting training impact assessment,
planning and reviewing learning and development programme.

5.2 Performance Standard

It involves carrying out training needs assessment, preparing capacity building programme and
calendar, conducting capacity building, coordinate coaching and mentoring programme, and
enhancing knowledge management, conducting training impact assessment, planning and
reviewing learning and development programme according to SOPs, as per the performance
appraisal guidelines, according to the training programme identified and as per the identified
needs.

5.3 Learning Outcomes

5.3.1 List of Learning Outcomes
a) Carry out training needs assessment
b) Prepare capacity building programme and calendar
c) Conduct capacity building
d) Coordinate coaching and mentoring programmes
e) Enhance knowledge management in the work place.
f) Conduct training impact assessment
g) Review training and development programmes
h) Manage professional growth and career development in the workplace.

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5.3.2 Learning outcome No1: Carry out training needs assessment
5.3.2.1 Learning Activities
Learning Outcome No1: Carry out training needs Assessment

Learning Activities Special Instructions

1.1 Identification of objectives of TNA Written questions

1.2 Identification of functional units
1.3 Development and dissemination of Training needs Oral questions
assessment tools Observation
1.4 Identification of competencies within each function
1.5 Review of performance appraisal reports Projects
1.6 Identification of gaps in the performance appraisal
report
1.7 Preparation of training needs assessment report

5.3.2.2 Information Sheet No 5 /LO 1: Carry out training needs Assessment

Introduction
This learning outcome covers the objectives of training, needs assessment, standard operating
procedures of functional units within the organization, tools used in development and
dissemination of training needs assessment, identifying the competencies within the functional
units, review performance appraisal reports and identifying the gaps within the performance
appraisal.

Definition of key terms

Training needs assessment (TNA): Training needs assessment is a process in which a
company identifies training and development needs of the employees in order to perform their
work effectively.

Performance Appraisal: Performance appraisal is the process of evaluating the performance

and qualifications of an employee in terms of the requirements for he is employed

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Content/Procedures/Methods/Illustrations

ORGANIZATION OBJECTIVES
List the objectives of an organization;
a) Financial Objectives
 Ensure financial sustainability 2. Diverse and grow revenue streams
 Maintain profitability
 Ensure balance in the budget
b) Internal Objectives
 Invest in total quality management
 Increase community outreach
 Improve customer satisfaction
 Increase percentage of sales from new products
c) Human resource objectives
 Improve performance with cross functional teams
 Improve technical and analytical skills
 Develop a performance focused culture
 Build high performing teams
 Enhance employee retention
 Invest in ways and tools to make the staff more productive

Training needs assessment (TNA)

Training need assessment tools;
 Questionnaires: It involves the formulating written question which are given to
trainees to give feedback at a given time within a specific duration.
 Surveys: Examining, recording and describing someone or something for an intended
purpose
 Performance appraisal reports: It is a final review of an employee skill, achievement
and performance in comparison with the organization objective.
 Interviews schedules: It a guide of well-structured questions that have been prepared
to guide an researcher in gathering data on a specific issue or topic
 Accident reports records: It is a form that is filled in order to record details of unusual
events that occur in an institution. Example, injury of employee.
 Complains register: It is a record of dissatisfaction expressed by employees on certain
issues.

Elements of a TNA
There are three basic elements in a TNA Process;
 Personal analysis: it involves input, output, consequences and feedback
 Organization analysis: it involves strategic directions, support training and trainee
resources
 Task analysis; it includes working activity and working conditions

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Objectives of TNA
 Maximizing resource’s
 Filling training gaps
 Prioritize training
 Boost chances of reaching organization’s goals

Purpose and benefits of TNA

 It helps mangers in identifying performance gaps and address these gaps appropriately
 Acts as a guide on what kind of training is needed to various employees
 Enables the management decide on the most relevant training to various groups of
employees
 Helps to allocate the training budget effectively
 Used in Identifying training objectives and goals

Preparation of TNA report

Figure 12: TNA framework from efinance.com

i. Preparing Appraisal Report: The purpose of the Performance appraisal is to record a
specific criterion for promotions, salary increase and disciplinary action, hence it should
Figure 13: TNA
involve from edu.com
an ongoing communication, set attainable goals and have a plan for the future.
ii. Motivates employee: Employees should be given clear guidelines of the expected goal
setting, established timelines, tracking progress, and identifying obstacles to their
individual goal. The employee whose contribution is identified should be rewarded.
iii. Reduces employee turnover and attrition: Providing employees with clear goals will
support company’s objectives and encourage retention by creating a pay-for-
performance structure that rewards your top performers appropriately.

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 iv. Protects legally: The detailed recorded document will avoid any kind of legal
complications in the future
v. Setting of Individual Goals Effectively: Setting goals is a mutual activity between a
manager and his or her employee. The manager communicates objectives to the
employee and the employer and employee together create successfully achievable goals
that are aligned with the company goals.

TNA Process
Step 1: A departmental file for new employee is created. The file contains attendance records
and performance feedback, and any discipline records.

Step 2: Employee’s department file is kept up-to-date and feedback is documented. Human
resource department is to be consulted to document appropriate informal feedback. It is kept in
the mind that writing a performance appraisal can be completed more efficiently when
supervisors plan ahead. For evaluating employee performance supervisors should never rely
on memory.

Step 3: Company’s human resources leader is consulted for tips on how to administer
discipline. Company with a progressive discipline policy has to maintain all documentation
related to each incident. Managers and supervisors should be trained in the proper use of the
forms and the overall discipline process and how to provide effective feedback to commend or
motivate employees to reach high performance level. Complete departmental file should be
maintained.

Step 4: Annual employee appraisal meeting has to be prepared well in advance. The date for
meeting has to be calendared and draft is begun on the areas in which you have performance
standards. The various areas like job skills, interpersonal communication and team-building
are included. Initiative and motivation can be observed and judged.

Step 5: Review is done. Employee’s department file for documentation is reviewed throughout
the year. All feedback has to be gathered. A draft appraisal form is prepared and the job
expectation is considered carefully. Employee of the appraisal meeting is reminded, and asked
to transpire during the conference to discuss his performance. All the process of appraisal has
to be recorded systematically.

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Figure 14: TNA from edu.com

Advantages and disadvantages of TNA

Advantages
 Training needs assessment is the breakdown of an identified need to determine its bases
and causes
 Helps in identification and prioritization of training requirements
 Causes of failure or non-performance is examined
 It is a diagnosis by the organization to know what the learning needs of its employees
are
 Needs analysis is essential because lack of competency is not the only reason for failure

Disadvantages
 Needs a skill observer
 Requires substantial time for effective development
 Can be costly to develop a system and implement it
 May enable managers to manipulate ratings to justify pay rise in their salaries
 Selecting people to be included in the high potential process may be difficult with no
hard criteria involved
 Can produce data that is difficult to quantify

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Competencies within each functional unit
Identification of competencies within the following functional units:
 Finance
 Administration
 Human Resource
 Supply Chain management services
 Accounts
 Sales and marketing

a) Finance
 Risk Assessment, Analysis and Management: Access, analyse and manage risk
using appropriate frameworks, professional judgment and scepticism for effective
business management.
 Measurement Analysis and Interpretation: Identify and apply appropriate,
reliable, and verifiable measurements to analyse data for a given purpose and
intended use.
 Reporting: Identify the appropriate content and communicate clearly and
objectively to the intended audience, the work performed and the results as
governed by professional standards, required by law or dictated by the business
environment.
 Research: Identify, access and apply relevant professional frameworks, standards,
and guidance, as well as other information for analysis and to make informed
decisions.
 Systems and Process Management: Identify the appropriate businesses processes
and system(s), related frameworks and controls to assist in the design and use of
systems for efficient and effective operations.
 Technology and Tools: Identify and utilize relevant technology and tools to
analyse data, efficiently and effectively perform assigned tasks as well as support
other competencies.

b) Administration
 Achievement/Results Orientation: Achieving efficient, timely, quality results by
directing efforts on expected outcomes while providing exemplary client service
within expected timeframes.
 Communication: Using language as a flexible tool to share and collect
information, exchanging ideas and openly exploring a variety of perspectives
adjusting style and content to each unique individual, audience and circumstance.
 Interpersonal Relations: Establishing and maintaining harmonious professional
relations by demonstrating respect for and sensitivity to others.
 Creative Thinking: Discovering new opportunities and solutions for problems by
looking beyond current practices and using innovative thinking.
 Impact/Influence: Gaining others’ support for ideas, proposals and solutions, and
getting others to take action to advance work objectives.

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  Organizational Knowledge: Understanding the role of the department and job
functions within the public service.

c) Human Resource
 Accountability: Accepts responsibility for own actions and decisions and
demonstrates commitment to accomplish work in an ethical, efficient and cost-
effective manner.
 Adaptability: Adjusts planned work by gathering relevant information and
applying critical thinking to address multiple demands and competing priorities in
a changing environment.
 Communication: Effectively conveys information and expresses thoughts and
facts. Demonstrates effective use of listening skills and displays openness to other
people's ideas and thoughts.
 Leadership: Communicates the organization’s vision in ways that gain the support
of others. Mentors, motivates and guides others toward goals.
 Occupational Knowledge/Technology Orientation: Demonstrates the
appropriate level of proficiency in the principles and practices of one's field or
profession. Demonstrates a commitment to continuous improvement, to include
understanding and application of technology
 Team Focus: Works cooperatively and effectively with others to achieve common
goals. Participates in building a group identity characterized by pride, trust and
commitment.

d) Supply chain management services

 Strategic industry management: Establishing long range business plans which
can anticipate the global market. This is particularly important for commodity
procurement.
 Category management: Arranging or categorizing your spending according to
specific goods or services (direct & indirect); and keeping in mind quality, service,
risk and cost.
 Project management: Driving the procurement process by designing,
implementing and managing projects to a successful conclusion. Establishing
accountability, establishing timelines and establishing goals are paramount.
 Relationship management: The ability to leverage interpersonal skills to establish
rapport and develop relationships with all key stakeholders: suppliers, customers &
colleagues.
 Negotiation skills: The ability to persuade, influence and explore positions and
alternatives to reach outcomes that will gain acceptance of all parties and will also
meet your organization’s strategic procurement objectives.
 Financial acumen: The ability to apply a broad understanding of financial
management principals and other quantitative information to ensure decisions are
fiscally responsible and based on your procurement budget.

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  Analytical skills: The ability to visualize, articulate, and solve both complex and
uncomplicated problems and concepts and make decisions that make sense based
on all available information. Particularly important in the selection of vendors.
 Aptitude for technology: The ability to apply and improve extensive or in-depth
specialized knowledge, skills, and judgement by assessing and translating
information technology into responsive and effective procurement solutions.
 Results-focused: The ability and drive for achieving and surpassing targets against
an internal or external standard of excellence. This is about showing a passion for
improving the delivery of services with a commitment to continuous improvement
in your procurement process.

e) Accounts
 Risk Assessment, Analysis and Management: Assess, analyse and manage risk
using appropriate frameworks, professional judgment and scepticism for effective
business management.
 Measurement Analysis and Interpretation: Identify and apply appropriate,
reliable, and verifiable measurements to analyse data for a given purpose and
intended use.
 Reporting: Identify the appropriate content and communicate clearly and
objectively to the intended audience, the work performed and the results as
governed by professional standards, required by law or dictated by the business
environment.
 Research: Identify, access and apply relevant professional frameworks, standards,
and guidance, as well as other information for analysis and to make informed
decisions.
 Systems and Process Management: Identify the appropriate businesses processes
and system(s), related frameworks and controls to assist in the design and use of
systems for efficient and effective operations.
 Technology and Tools: Identify and utilize relevant technology and tools to
analyse data, efficiently and effectively perform assigned tasks as well as support
other competencies.

f) Sales and marketing

 Customer /Quality Focus: Anticipates, monitors and meets the needs of customers
and responds to them in an appropriate manner. Demonstrates a personal
commitment to identify customers' apparent and underlying needs and continually
seeks to provide the highest quality service and product to all customers.
 Inclusiveness: Fosters respect for all individuals and points of view. Interacts
appropriately with all members of the campus community, campus visitors and
business and community partners without regard to individual characteristics.
Demonstrates a personal commitment to create a hospitable and welcoming
environment.

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Performance appraisal reports
● Gather foundational information
● Review your performance journal notes
● Prepare a list of strength and weakness of an individual
● Prepare areas of development
● Draft goals for the coming period
● Share your preparation

Functions of performance appraisal report

● Provides valuable information for personnel decisions such as pay increase, promotion,
demotion or transfers.
● Useful in analysing training and development needs.
● Facilitates human resource planning, career planning and succession planning.
● Helps to judge the effectiveness of recruitment, selection, placement and orientation.

Conclusion
This learning outcome covered the objectives of training, needs assessment, standard operating
procedures of functional units within the organization, tools used in development and
dissemination of training needs assessment, identifying the competencies within the functional
units, review performance appraisal reports and identifying the gaps within the performance
appraisal.

Further reading

Read more on; Methods used in training and types of training. Books (CB GUPTA)

5.3.2.3 Self-Assessment

Written assessment
1. Organization xyz has been having problems while formulating the end results for a
performance appraisal exercise. What could be the main reason for this problem?
A. Ineffective performance appraisal methods
B. Poor time management
C. Inadequate tools and equipment’s for the exercise
D. Inadequate HR personnel

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2. An Organization formulates different types of goals. Goals can vary depending on the
specific time to which they are supposed to be achieved. Which is the most effective type
of goal that can be used to achieve the desired organization goal.
A. Short term goals
B. Long term goals
C. Medium goals
D. Immediate goals
3. A company experience several accidents and injury complains. The management has
decided to carry out training on order to reduce these incidents. Which is the most
appropriate type of training required.
A. Orientation training
B. Promotional training
C. Safety training
D. Job training
4. After a performance appraisal exercise there was a poor performance from the employees
of a given department. After a close examination, which could be the main reason to this
result?
A. Organizational structure
B. Few employees in the department
C. Inappropriate training of employees
D. Climatic conditions and weather changes
5. The major difference between training and education is?
6. The best method for conducting a training need analysis when data is to be obtained from
a large group of employees.
7. Needs Assessment for Employee Customer Service Training is important to an
organization. There are gaps that limit this process. Explain.

Practical Question
The Trainee is supposed to
1. To formulate the best strategy to conduct the training
2. Must have good communication skills
3. Must select the most effective method for data collection

Resources
1. Personal Protective Equipment
2. Writing materials and pens
3. Demonstration equipment

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5.3.2.4 Tools, Equipment, Supplies and Materials
 Internet
 Journals
 HR Management Books
 Human resource polices, guidelines and regulations Strategic plans.
 Work plans and programme/schedules.
 Career progression manuals.
 Organization structure, policies and procedures

5.3.2.5 References

Amsa, P. (1986). Organizational culture and work group behaviour: an empirical study. Journal
of Management Studies, 23(3), 347-362.

Kocher, M. G., & Sutter, M. (2005). The decision maker matters: Individual versus group
behaviour in experimental beauty‐contest games. The Economic Journal, 115(500),
200-223.

Thornton, A., & Clutton-Brock, T. (2011). Social learning and the development of individual
and group behaviour in mammal societies. Philosophical Transactions of the Royal
Society B: Biological Sciences, 366(1567), 978-987.

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5.3.3 Learning Outcome No2: Prepare capacity building programme and calendar
5.3.3.1 Learning Activities
Learning Outcome No LO 2: Prepare capacity building programme and calendar

Learning Activities Special Instructions

2.1. Determination of training requirements for each Written questions

functional unit Oral questions
2.2. Identification of the training programme that will Observation
bridge the gap ideas Projects
2.3. Determination of training objectives
2.4. Identification of training methods -Who, when, where,
what and why Resource persons and venue identified
2.5. Determination of budgetary allocation for training and
development
2.6. Drawing of the training calendar

5.3.3.2 Information Sheet No 5 /LO2: Prepare capacity building programme and calendar

Introduction
This learning outcomes covers the determination of training requirements, training objectives,
and budgetary allocation. It also consists of identification of a training programme that will
bridge the gap, training methods and drawing of a training calendar as per standard operating
procedures (SOPs).

Definition of key terms

Capacity building: This is a process where individuals or organizations seek to improve their
skills, knowledge, tools and resources required to carry to improve their efficiency in carrying
out their given duties and responsibilities.

Training calendar: This is a detailed schedule which has a time frame and outlines training
objectives and activities that are to be achieved in the given period.

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Content/Procedures/Methods/Illustrations

TRAINING PROGRAMME
Identification of training programme that will bridge the gap
 Balance between core knowledge and skills
 Create awareness and interest
 Effective goal setting
 Define outcome of program
 Establish a training culture in the organization
 Performance support and feedback on the job
 Open communication and feedback

Evaluation of training programme

 Reactions: It refers to the attitude of an employee in relation to the training process. If
people accept the program and changes then the reaction will be positive.
 Learning: The degree to which employees have learnt during the training is an effective
method for the program. It can be seen in the trainees’ mark sheet or report submitted
by the employee and actual performance of the employees.
 Behaviour: The behaviour of employees is determined by how they interact with their
junior, peer group or seniors. It is important for the human resource department to
understand the behaviour of employees in order to understand the effectiveness of
training.
 Result: An employee can provide results in monetary terms in order to determine the
effectiveness of the program ie group performance before training.

Training objectives
They are a brief summary of the importance to participants of a program. They are the intended
measurable outcome that trainees will achieve once they've finished a course or program.

List the training objectives

 To acquire new information that helps employed carry out their task effectively.
 To sway or influence employees’ attitude and perception towards training.
 To learn physical skills, that i using physical machinery quickly and efficiently.

Training methods
 Simulation: It is the act of imitating an actual process in order to provide a realistic
experience in a controlled environment.
 Lecture: It’s a method where the instructor talks and the scholar passively listens.
 Demonstration: It refers to the extensive selection of potential educational projects or
presentation through which trainees indicate what they have learnt.
 Role play: It a scenario where a trainee assumes the part of a task by simulating real
working conditions.
 Project: It is an activity consisting of one or two courses with specific objectives to be
covered within a prescribed time and cost budget.

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  Case studies: It is a method that can be used to advance decision making skills, increase
team spirit and develop interpersonal skill and build up analytical skills of trainees
 Exchange programme: This is a program where employees from various functional
groups or companies exchange ideas and skills

Budgetary allocation
Determination of budgetary allocation for training and development. A budget is determined
by the following factors:
 Initial communication about the training program
 Training materials
 Staff time
 Payment of staff
 Instructor fee

Elements of a training calendar

 Make a business case
 Develop objectives and learning outcomes
 Develop content and instructional design
 Access internal and external resources
 Develop education and training materials
 Transfer knowledge, skills and abilities
 Evaluate effectiveness
 Undertake continuous improvement

Preparation of a training calendar

 Identify required training: It is the initial step while preparing for an annual training
calendar. It entails training required by law, by contractual obligations, or by the
company. For example, OSHA HAZWOPER training.
 Determine additional training opportunity: After identification of any required training,
reflect on any additional training opportunities that can aid to promote a safe and
compliant workplace.
 Decide on a training format: Next you will have to put to consideration the manner in
which the training will be delivered. Finding a clear idea of your required and
recommended training needs will aid to prioritize the budget in order to achieve the
desired outcomes. While planning for the budget, put to consideration factor in direct
and indirect cost. E.g., training materials
 Review your training management system: Eventually, you have a system in order to
document training activities, view specific assignment and status and to ensure that
employees have completed assigned training.
 Your take away: By setting down on time and planning, it will be easy to maximize
results, lower cost and reduce workload annually.

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Implementation of a training calendar
 Establish program goals.
 Choose the right employee training software.
 Create useful, personalized and engaging employee learning experiences.
 Deliver training to employees at the right time.
 Track and improve

Conclusion
This learning outcome focused on employee training and capacity development. It aimed at
defining what is training and capacity development and other key terms in this area of study. It
also seeks to find the importance of training and development to the employees and to the
organization as well. Methods of training are also defined. Consent on training calendar is also
illustrated and explained.

Further Reading

Read on: Methods and types of training

5.3.3.3 Self-Assessment

Written assessment
1. An organization intends to take employees for a building capacity programme. There are
various ways in which the management can use for the success of the programme. Which
is the most beneficial way.
A. Seminar and workshop
B. Tours and lunch dates
C. Leave and off days
D. Monetary incentives
2. Some organization use internal motivation speakers for capacity building programme. As
a result of this, employees find it monotonous to be given counsel by their colleagues.
Which other method can be used to break this monotony?
A. Inviting celebrities and politicians
B. Use of board members and top managers
C. Hiring external motivation speakers
D. Use of teleconferencing

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 3. Training is a key element used to improve employee’s effectiveness. There are various
reasons that hinder the success of this process. From the following choices select a
statement that limits the effectiveness of training.
A. Lack of time
B. Inadequate finances
C. Language barrier
D. Personal differences between subordinates
4. Determination of a training requirement depends on the basic techniques which include
the following methods expect.
A. Direct observation
B. Survey
C. Records and report study
D. Health issues of employees
5. A capacity building programme involves various activities. List 5 activities that forms
up a building a programme.
6. Development programme maybe formulated after a performance appraisal exercise.
What are the various factors that should be considered?
7. Capacity building program is a tool that can be used to eliminate the negative outputs
of change in the organization. Explain.

Practical Question
For the success of a capacity building programme, the following are required.
1. Well planned budget
2. Support from top management
3. Conducive environment
4. External motivators

Resources
1. Finance
2. Writing materials
3. Hall or room
4. Chairs and desks

5.3.3.4 Tools, Equipment, Supplies and Materials

 Human Resource books

 Management books
 Journals
 Internet

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5.3.3.5 References

Amsa, P. (1986). Organizational culture and work group behaviour: an empirical study. Journal
of Management Studies, 23(3), 347-362.

Kocher, M. G., & Sutter, M. (2005). The decision maker matters: Individual versus group
behaviour in experimental beauty‐contest games. The Economic Journal, 115(500),
200-223.

Thornton, A., & Clutton-Brock, T. (2011). Social learning and the development of individual
and group behaviour in mammal societies. Philosophical Transactions of the Royal
Society B: Biological Sciences, 366(1567), 978-987.

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5.3.4 Learning outcome No 3: Conduct Capacity Building
5.3.4.1 Learning Activities
Learning Outcome No3: Conduct capacity building
Learning Activities Special Instructions

3.1 Communication of training calendar to the employees and Written questions

resource persons
3.2 Preparation of training manuals Oral questions
3.3 Conducting training Observation
3.4 Monitoring and evaluation of the training and changes
initiated Projects

5.3.4.2 Information Sheet No5/LO3: Conduct capacity building

Introduction
This learning outcome covers communication of training calendar to employees and resource
persons, preparation of training manuals, conducting training and monitoring and evaluation
of the training and changes initiated.

Definition of key terms

Digital learning: Refers to the form of learning that is conducted through technological means,
knowledge and skills are transferred through the internet.

Coaching and mentoring: Coaching refers to an on-the-job form of training where an

employee is trained and taken through work processes at the workplace both verbally and
through demonstrations to help improve skills they already possess. Mentoring involves
focusing on the development of not only on an employee’s current performance but also his or
her future aspirations to grow professionally.

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Content/Procedures/Methods/Illustrations

TRAINING CALENDAR
A training calendar is a form of managing learning and development in an organization; it is
used to promote discipline through creation of schedule and agendas that should be followed
during the training process.

Communication of training calendar to the employees and resource persons

 Send a memo to involved parties
 Create a program
 Interact with the employees and distribute the program while trying to attract interest
 Select the suitable audience for training
 Promote the program

Training
Training involves the process of transferring basic knowledge and skills on production and
better performance to employees.

Objectives of training
McGregor states that there are three main reasons for training, he believes that training is done
to achieve;
 Manual skills: For employees to acquire manual skills, they require long term
experience and practice.
 Problem solving skills: These are skills that involve analyzing a problem, finding the
correct interpretation and alternative solutions then giving feedback. These skills can
be transferred verbally.
 Intellectual knowledge: This is knowledge that can be transferred in any form but only
if the employee is willing, so the organization has to create a need for such knowledge
to get the employees interested.

How to conduct training/ Training process

Training is a systematic process which aims at improving knowledge, skills and ability at
individual, group and organization level. Training should be effective such that the cost of
training is overcome by the benefits. To achieve this, management has to follow certain steps
as follows:
i. Training needs assessment:
The first step in training is to identify the training need. Before planning the training,
management should assess the training need. Training need is the gap between actual skills,
knowledge and competencies and desired or required level of skills, knowledge and
competencies. This helps to determines types and level of training. This means training need
assessment is conducted to determine to whom in individual or group or organization level
training is essential or not. This estimates how many employees of what level need the training
urgently or at future. Correct assessment of training need is the key for training effectiveness.

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 ii. Establishment of training objectives
After finding the training needs, training objectives should be established. This is major task
in training process. The primary objective is obviously to meet the gap between the actual and
required skills, knowledge and competencies. Secondary objectives can be different for
different time and condition.

iii. Choosing appropriate method

Training methods are most important to attain the training objectives. Methods are the means
to transfer the skills, knowledge and working procedure. There are basically two methods for
training namely on the job and off the job.
Under on the job training methods, employees learn with doing their regular job at the work
place. Quick feedback is possible in on the job training method. Off the job training is
conducted at seminar hall, coaching centre or training institutions. It the trainees are large in
numbers, off the job training method becomes appropriate. Selection of training method
depends upon training objectives, number of training, training place, etc.

iv. Training planning

After choosing training method, training plans should be prepared. For planning certain matters
like training contents, trainers, training budget, training schedule final list of trainees, training
materials, etc. should be prepared.

v. Conducting training
All this stage, actual training programs are conducted. Prepared plans and programs are
implemented to get desired training output. Now, actual training activities begin to impart
skills, knowledge and abilities.

vi. Training effectiveness evaluation

It is important to know whether the training became fruitful or not, training objectives are
attained or not, training should be evaluated. There are different methods of training evaluation.
Some methods focus to the training effectiveness evaluation just immediate to training
programs where as some other methods measure effectiveness after certain time. Training
effectiveness can be judged just by measuring whether the job outputs are improved after
training or not.

vii. Feedback
Feedback is the response of training effectiveness. Feedback provides the information
regarding the weakness and strengths of training programs. Feedback helps to improve the
training program in the future.

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Preparation of training manuals
A training manual is a way of ensuring that everyone is performing their tasks efficiently. The
following process explains how to prepare a training manual according to the organizational
needs
i. Identify the objectives; this involves coming up with goals that should be achieved at
the end of the process.
ii. Understanding the audience; this involves understanding the knowledge they possess,
the knowledge they require, their employment levels and other specific needs.
iii. Selecting training tools; after understanding the audience and their needs, it is easier to
choose what tools they will all need in training.
iv. Create training materials; as the trainer, you will need teaching materials, plan and a
well-arranged list of programs to be presented.
v. Come up with an evaluation method; this involves preparing a test to be used at the end
of training to determine if training was effective
vi. Feedback; this can involve positive or negative feedback from both parties.

Monitoring and evaluation of the training and initiation of changes

Monitoring and evaluation is the best way used by management in ensuring that the training
process was effective and that every knowledge and skill transferred is being implemented.
Monitoring and evaluation helps;
 To determine the effectiveness of the training process
 Establish what percentage of learning was achieved
 Determine the success or failure of the process so as to decide whether it should be
done again in the future.
 Assess to see if organizational performance has improved

Methods of learning
The following are the in-house methods of learning
a) On-the-job
If the training is conducted at the working place of employee, that training method is called on
the job. Here, trainees are not necessary to go to the training center or elsewhere out of the job
station. Main objective of this training method is 'learning by doing'. Training to provide skills
or knowledge related to technical jobs like tailoring, plumbing, wiring, computer programming,
etc. are given at the working place of trainees under direct supervision of highly skilled trainer.
This method is more effective as trainees can learn while doing. They get quick feedback
regarding the level of their learning so that they can revise if they lack skills. This method is
considered as most economical method of training.
b) Off-the-job
If the trainees need to go to training centre or anywhere outside their job station for training
then the training method is called off the job training. Basically, training programs based on
lecture or class room activities are conducted outside the working place. Off the job training
method is trainer centred. Nowadays different audio-visual device like projectors, films,
documentary etc. are available for training purpose.

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To make training effective but the effectiveness of training depends upon the skills and
knowledge of trainer and methodology used to deliver the skills in the training. Trainees get
relief from the work place stress during training so training is assumed to be more effective.
Trainer cannot get the immediate feedback regarding the training output, so training cannot
evaluate the training effectiveness quickly.
c) Coaching and mentoring
As stated above, Coaching refers to an on-the-job form of training where an employee is trained
and taken through work processes at the workplace both verbally and through demonstrations
to help improve skills they already possess, while mentoring involves focusing on the
development of not only on an employee’s current performance but also his or her future
aspirations to grow professionally.

Barriers to effective coaching and mentoring

 Unclear role boundaries
 Unrealistic expectations
 Organizational culture
 Clash of personalities
 Lack of support from the management
 Bad blood between the employees being mentored and the ones not selected

Digital learning
Refers to the form of learning that is conducted through technological means, knowledge and
skills are transferred through the internet. Digital learning has the following advantages;
 It is efficient in delivering information
 Freedom in learning
 It is flexible and convenient, readily available everywhere, any time
 Promotes self-training
 No time limitations
 Sessions can be recorded for later reference

Disadvantages
 Limited tests
 Knowledge-based assessments no practical
 It is not secured
 Most performance are not genuine

Advantages and disadvantages of each method of learning

Advantages of on the job training method:
 Less time consuming: On the job training method is conducted within job time and the
job station. Trainees get skills under the direct supervision of trainers or supervisors.
So, they get quick feedback. Hence, the training takes less time.

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  Cost effective: Trainee employees need not to go anywhere away from their job station.
They do their regular job. There will be no change of job leisure at the organization.
Therefore, this method incurs less cost in comparison to other methods.
 Strong motivation: Trainees get quick skills, knowledge and experience what they
learn from training. They can immediately apply the skills learnt from training. Because
of this, trainees get strong motivation.
 Simple method: On the job is simple training method as it is conducted at the working
situation and under the strict supervision of instructor. The change of misleading or
misunderstanding can be very low. Wherever trainees get confused or feel problem,
instructor guide them immediately. Therefore, trainee employees feel the training
simple.
 Multiple skills: This method provides the opportunity of getting multiple skills.
Trainees have to work at their regular job station as the regular employees.
So, instructors provide instruction in some other areas of training as well. They will not
confine only to the subject matter of training.
 Quick feedback: In this training method, trainees need to work under the supervision
of instructors. They have to apply the skills immediately at the job. Instruction find
immediately whether they have learnt perfectly or not. Training effectiveness can be
known immediately.

Disadvantages of on the job training method:

 High chance of accidents: Trainee employees cannot work perfectly as they are placed
first time at the job. They cannot handle the machinery perfectly. They may not have
the perfect body coordination for the job. So, the chance of meeting accident becomes
high.
 Low quality product: Trainee employee lack sufficient skills, experience and
expertise at work. They work at regular job responsibilities. Output of their job i.e.,
goods and services at training period may thus be low quality product. This may reduce
consumer satisfaction.
 Lower productivity: Trainee workers are required to work at regular job
responsibilities. Their job may not be perfect. Wastage remains may be maximum level.
Machinery and equipment get breakdown frequently. So, with comparatively high
input, low outputs can be attained. This reduces in low productivity.
 Disturbances: Regular activities of employees will be highly affected by the training
programs. Regular production schedule gets disturbed by training because of which
production target in terms of time, number of production and quality cannot be
attained.

Advantages of off the job training method:

 Cost effective: Under this training method, maximum number of trainee employees
can be included. Therefore, training cost per trainee remains low.

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  Low production error: Trainee employees learn the skills and knowledge outside the
work place. They are expected to be perfect at training spot or institute so that they
apply the learnt skills at job. Therefore, there is low chance of production error.
Wastage can be minimized and the chance of distribution defective products at the
market is low:
 No chance of accidents: Employees learn the skills at virtual work place with virtual
machinery and equipment at the beginning. They are allowed to handle the actual
equipment and materials only after being perfect at their job. So, there will be no chance
of being accidents at the work place. This saves time, equipment and even sometimes
the life of employees.
 Maintaining productivity: Wastage of time, materials, equipment and machinery is
very low at the real production because there is no chance of test or trial production.
Employees get confident in the training outside the working environment. This helps to
maintain the actual productivity of organization and to increase after joining the job be
trained employees.
 No disturbances for production: Trainee employees join the training somewhere
away from the working station. They do not disturb the working employees at the job.
Production can be continued without any delay or disturbances.

Disadvantages of off the job training method:

 Slow feedback: Trainee employees do not apply their skills on the job immediately
during learning period. They realize they have learnt the skills but when they join the
actual job responsibilities, they may lack full confident or skills. There is no chance of
getting immediate feedback. This provides no opportunity of evaluating training
effectiveness quickly.
 Less effective: In this method of training, trainees may not express their queries or
obstacles of getting skills. They just may express their positive response without getting
the skills fully. Training program may be completed even without having the employee
perfect for the purpose. Therefore, all the objectives of training may not be attained.
 No production: During the training period, employees join training outside the
working station. They do not involve in daily production process. So, during the
training period, there will be no production and hence there may be problem for
maintaining the supply.
 Expensive: This method of training can be expensive in the sense that organization
needs to manage extra place for training. Employees need to go the institutes;
organization has to pay for institutes and trainers.
 Low involvement: This method of training is less interesting as trainee employees do
not get chance to apply the skills immediately. The effectiveness of training totally
depends upon the activeness, delivery skills and attractiveness of trainers. Therefore,
employee's involvement in this training remains very low.

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Conclusion
This learning outcome covered communication of training calendar to employees and resource
persons, preparation of training manuals, conducting training and monitoring and evaluation
of the training and changes initiated.

Further Reading

Students should read further on the forms of coaching and mentoring.

5.3.4.3 Self-Assessment

Written assessment
1. A manager at a beverage company is planning to start coaching his employees. Among the
following statements chose one that is not a barrier likely to be faced during the process.
A. Unclear role boundaries
B. Cost
C. Unrealistic expectations
D. Organizational culture
2. Digital learning is among the most evolving type of learning as it can be accessed by
anybody who is interested as does not take on space. From the following identify one
advantage of digital learning
A. Promotes self-training
B. Knowledge-based assessments no practical
C. It is not secured
D. Most performance are not genuine
3. Training is important in an organization as it increases people’s knowledge. The following
include methods of training, except?
A. Coaching and mentoring
B. Digital learning
C. On job training
D. Job analysis
4. Among the following statements, which one is not a disadvantage of off-job training?
A. Expensive
B. No chance of accidents
C. Less involvement
D. Slow feedback

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5. According to McGregor, what are the main objectives for training
6. You being a manager of a sugar manufacturing company, state four methods you would
use to train the employees
7. On the job training method is conducted within job time and the job station. Trainees get
skills under the direct supervision of trainers or supervisors. So, they get quick feedback.
Hence, the training takes less time. Explain the training process

Practical Question
You have been hired by the ministry of health to educate its employees on the importance of
personal hygiene, prepare and host an online training session.

Resources
1. Furniture (table and chair)
2. Internet
3. List of trainees
4. Laptop

5.3.4.4 Tools, Equipment, Supplies and Materials

 Documents
 Group discussions
 Case studies

5.3.4.5 References

Gina Abdi (2016). Communicate about Rollout of your training program

Megginson, D. and Clutterbuck, D. (2005). Techniques for coaching and mentoring.

Amsterdam; London: Elsevier Butterworth Heinemann

Michael Armstrong (2004). Human Resource Management Practice. 9th edition.

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5.3.5Learning Outcome No4: Coordinate coaching and mentoring programme
5.3.5.1 Learning Activities
Learning Outcome No 4: Coordinate coaching and mentoring program
Learning Activities Special Instructions

4.1 Identification of goals, objectives and duration

4.2 Identification and selection of individuals who require
mentoring and coaching
4.3 Identification of coaches and mentors
4.4 Conducting coaching and mentoring
4.5 Monitoring, evaluation and reporting

5.3.5.2 Information Sheet No5/LO4: Coordinate coaching and mentoring programme

Introduction
This learning outcome covers identification of goals, objectives and duration, identification
and selection of individuals who require mentoring and coaching, identification of coaches and
mentors, conducting coaching and mentoring, and monitoring, evaluation and reporting.

Definition of key terms

Coaching: Coaching refers to an on-the-job form of training where an employee is trained and
taken through work processes at the workplace both verbally and through demonstrations to
help improve skills they already possess.

Mentoring: Mentoring involves focusing on the development of not only on an employee’s

current performance but also his or her future aspirations to grow professionally.

Content/Procedures/Methods/Illustrations

COACHING AND MENTORING

Goals and objectives of coaching and mentoring
 To attain better results both individually and as a team
 Make future plans and take advantage of opportunities
 Be able to identify problems and solve them
 Participate in team building activities
 Overcome barriers and bring about change to the organization
 Participate in decision making
 Help employees believe in themselves and set personal goals
 Help employees broaden their ways of thinking

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Duration of coaching and mentoring
While both processes have the main objective of improving performance, when it comes to the
duration of these processes, coaching and mentoring differ; mentoring is a long-term process
that is based on mutual respect, understanding and trust while coaching is a short-term process
where specific skills that need to be developed are focused on.

Process of mentoring and coaching

The process of mentoring and coaching involves the following;
i. Set standard for qualification: This helps in the selection of those suitable to undergo
mentorship and coaching
ii. Create the mentoring and coaching program goals: This does not only contain the
objectives that should be achieved, but also the time duration in which the program
should take place
iii. Way to end coaching and mentorship: Decide at what point it will be considered that
the employee is fully equipped, performance has improved and the program can stop

Advantages and disadvantages of coaching and mentoring

Advantages
 More personal level of learning
 Promotes personal awareness
 Allows for employee engagement
 Gives way to career development
 Concentrates on improving particular skills

Disadvantages
 Lack of management support
 Wrong matching of employee and mentor or coach
 Feeling of hatred from those not chosen
 Discrimination issues
 Development of false expectations
 Learners become too dependent on their coach and mentors

Barriers to effective coaching and mentoring

 Unclear role boundaries
 Unrealistic expectations
 Organizational culture
 Clash of personalities
 Lack of support from the management
 Bad blood between the employees being mentored and the ones not selected

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Identification and selection of individuals who require mentoring and coaching
Coaching and mentoring is significantly required by most shareholders in an organization;
 Managers: They also need to grow and improve their skills
 Top managers: Those who failed to gain from attending seminars and conventions
 Employees: While trying to establish career development
 Individuals who had taken a break from employment
 Mentors and coaches themselves
 Employees who understand better through coaching and mentoring
 Employees: Who’s transitioning to new career paths

Organizational benefits of coaching and mentoring

 Through coaching and mentoring, new employees are able to perform their jobs
efficiently and significantly contributing to productivity
 By coaching and mentoring, the management is able to get a better understanding of
the employees, their weaknesses and strengths hence efficient allocation of jobs
 Coaching and mentoring helps reduce turnover, hence better production
 Coaching and mentoring is a form of motivation, it promotes employee morale to
perform

Identification of coaches and mentors

Elements of a good coach
 Friendly
 Observer
 Gives feedback
 Listens
 Asks questions
 Impartial
 Creates time
 Confident
 Has set goals and objectives
 Has expertise knowledge on the job

Monitoring, evaluation and reporting on coaching and mentoring

Monitoring and evaluation can be used significantly by coaches and mentors in ensuring that
the coaching and mentoring processes were effective and that every knowledge and skill
transferred is being implemented and practiced to bring about growth and productivity.
Monitoring and evaluation helps;
 To determine the effectiveness of the mentoring activities
 Establish the percentage of learning and growth was achieved
 Determine the success or failure of the process so as to decide whether it should be
done again in the future.
 Assess to see if organizational performance has improved

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Conclusion
This learning outcome covered identification of goals, objectives and duration, identification
and selection of individuals who require mentoring and coaching, identification of coaches and
mentors, conducting coaching and mentoring, and monitoring, evaluation and reporting.

Further Reading

Read further on: coaching and mentoring

Self-Assessment

Written assessment
1. In human resource, 3 steps of coaching and mentoring are discussed, name one
A. Set standard for qualification
B. Feedback
C. Distribute brochures
D. Sensitization
2. In human resource management there exist different types of models, state one model of
coaching and mentorship.
A. The Standard Causal model
B. The grow models
C. The guest models
D. The Warwick models
3. The following are elements of a good coach/mentor, except?
A. Impartial
B. Creates time
C. Confident
D. Controlling
4. While trying to promote production, management tents to face obstacles, state one barrier
to effective coaching and mentorship
A. More personal level of learning
B. Promotes personal awareness
C. Unrealistic expectations
D. Allows for employee engagement

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5. The following include the responsibilities of human resource in coaching and mentorship,
except?
A. recruitment
B. Writing reports
C. Career development
D. Function evaluation
6. As a human resource officer, give 4 qualities of a good coach or mentor.
7. Coaching and mentorship is considered important in organization productivity, briefly state
4 disadvantages of coaching and mentorship
8. Briefly explain the process of coaching and mentorship.
9. Identify and explain individuals who require mentoring and coaching in an organization

Practical Question
The candidate is required to:
1. Assuming the human resource manager role, prepare a mentoring session with your
employees on improving their leadership skills
Resources
1. Conference hall
2. Furniture (tables and chairs)
3. The days agenda
4. Writing materials

5.3.5.4 Tools, Equipment, Supplies and Materials

 Documents
 Group discussions
 Case studies

5.3.5.5 References

Megginson, D. and Clutterbuck, D. (2005). Techniques for coaching and mentoring.

Amsterdam; London: Elsevier Butterworth Heinemann
Levy, M. M., Dellinger, R. P., Townsend, S. R., Linde-Zwirble, W. T., Marshall, J. C., Bion,
J., & Parker, M. M. (2010). The Surviving Sepsis Campaign: results of an international
guideline-based performance improvement program targeting severe sepsis. Intensive
care medicine, 36(2), 222-231.

Shaukat, A., Oancea, C., Bond, J. H., Church, T. R., & Allen, J. I. (2009). Variation in detection
of adenomas and polyps by colonoscopy and change over time with a performance
improvement program. Clinical Gastroenterology and Hepatology, 7(12), 1335-1340.

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5.3.6 Learning Outcome No 5: Enhance knowledge management in the work place
5.3.6.1 Learning Activities
Learning Outcome No5: Enhance knowledge management in the work place
Learning Activities Special Instructions

5.1 Receiving and compiling of training and development Written questions

reports. Oral questions
5.2 Receiving and compiling of coaching and mentoring Observation
evaluation reports. Projects
5.3 Uploading reports in the data base Review of portfolios

5.3.6.2 Information Sheet No 5/LO5: Enhance knowledge management in the work place

Introduction
This learning outcome covers receiving and compiling of training and development reports,
receiving and compiling of coaching and mentoring evaluation reports and uploading reports
in the data base.

Definition of key terms

Work place: Is a location where someone works for his or her employer, a place of
employment.

Knowledge management: It is the process of creating, sharing, using and managing the
knowledge and information of an organization. It refers to a multidisciplinary approach to
achieve organizational objectives by making the best use of knowledge.

Content/Procedures/Methods/Illustrations

KNOWLEDGE MANAGEMENT
Knowledge management process
i. Discovery: In this step of the process, the sources of knowledge are identified, as well
as where critical knowledge is kept, what can be learned from this knowledge and if
there are areas in which knowledge can be lost during the process.
ii. Capture: Every organization contains a vast amount of knowledge, and it must be
stored and organized in a deliberate manner.
iii. Process: This step is when an organization should be establishing and promoting a
cultural shift toward knowledge sharing and developing employees to be innovators
iv. Share and benefit: How best can individuals within the organization access this
knowledge?

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Components of knowledge management
a) People: You need to get the right people involved before you get into processes and
technology.
b) Process: Knowledge flows in a cycle starting by:
i. Create new knowledge (this happens every day, all the time, across all areas of the
business)
ii. Identify knowledge that is critical to strategy and operations
iii. Collect knowledge so it can be shared with others
iv. Review knowledge to evaluate its relevancy, accuracy, and applicability
v. Share knowledge through documentation, informal posts, and collaborative
activities
vi. Access knowledge through pull (e.g., search) and push (e.g., alerts) mechanisms
vii. Use knowledge to solve problems faster and make more informed decisions.
c) Content/IT: Content is any kind of documented knowledge from vetted best practices
to quick tips shared amongst colleagues.
d) Strategy: Every program needs a clear, documented, and business-relevant strategy
e) Governance

Importance of knowledge management in an organization

 Faster, better decision making
 Increased collaboration
 Building organizational knowledge
 On-boarding and training process are optimized
 Increased employee happiness and retention, due to the valuing of knowledge, training,
and innovation
 A smarter workforce is built who are more able to make quick, informed decisions that
benefit the company

Identification of knowledge management

 Tutoring & training, communities of practice, Q&A, and expertise location
 Documentations, guides, guidelines, FAQ and tutorial
 Forums, intranets and collaboration environment
 Learning and development environments

Methods of knowledge management.

 After Action Review: It is an assessment conducted after a project or major activity
that allows employees and leaders to discover (learn) what happened and why
 Knowledge Audit: It is a systematic process to identify an organization’s knowledge
needs, resources and flows, as a basis for understanding where and how better
knowledge management can add value
 Knowledge Harvesting: It is a tool used to capture the knowledge of experts and make
it available to others

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  Knowledge Harvesting is a tool used to capture the knowledge of experts and make it
available to others
 Sense making: It is a process of creating situational awareness and understanding in
situations of high complexity or uncertainty, in order to make decisions.

Challenges of knowledge management

 Getting and Keeping People Motivated: It can prove challenging to get everyone on the
same frequency when it comes to storing and sharing data
 Measuring Knowledge Contribution: Knowledge is not something that can be easily
quantified and is far more complex because it is derived out of human relationships and
experience.
 Keeping Shared Information up to Date and Accurate: Moderation of your content is
challenging.
 Rewarding Active Users: Choosing how you are going to reward your users is tough,
and if you get enough contribution that you do not worry about what it would be like
without those users, you may have never had this idea cross your mind

Training and development reports

Objectives of training and development reports
 To make the process of analysis easier
 To find out the influential factors which pursued by employees in training and
development
 To identify the relationship between employee satisfaction
 To identify the general information of training and development and employee
perceptions.

Process of writing training and development report

Step 1: Concept and the objective of the training and development
Step 2: The methodology used
Step 3: Training need assessment
Step 4: Conclusion

Coaching and mentoring evaluation reports

Coaching is a form of development in which an experienced person, called a coach, supports a
learner or client in achieving a specific personal or professional goal by providing training and
guidance. The learner is sometimes called a coachee. Mentorship is a relationship in which a
more experienced or more knowledgeable person helps to guide a less experienced or less
knowledgeable person.

How to write a caching and mentoring report

 Focus on the learning and difference your project makes
 Be clear about the audience
 Think creatively about how to present your findings

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  Share your findings

Uploading reports in the data base

It is the transfer (data) to computer typically to one that is larger or remote from the user or
functioning as a server. The ultimate purpose of uploading coaching and mentoring report is to
secure it for future reference.

Conclusion
This learning outcome covered receiving and compiling of training and development reports,
receiving and compiling of coaching and mentoring evaluation reports and uploading reports
in the data base.

Further Reading

Read more on mentoring evaluation reports from Demarest, M. (2003). Understanding

knowledge management. Long range planning, 30(3), 321-384.

5.3.6.3 Self-Assessment

Written assessment
1. A Knowledge Audit is a dynamic process to identify and assess knowledge, its
availability, needs, sources, structure, flow, use, and importance to the organization.
Which of the following statements do you agree with relating to knowledge audits?
A. A knowledge audit should always be completed before an information audit
B. An information audit should always be completed before a knowledge audit
C. Information and knowledge audits are the same
D. Information and knowledge audits are unrelated
E. Information and knowledge audits are complementary processes
2. The following strategy option should be used to bring people together to share knowledge
from dispersed parts of the organization.
A. Communities
B. Corporate portal
C. Storytelling
D. E-learning
E. Competitive

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3. For knowledge audits to take place effectively, there has to be s strategy used to ensure its
effectiveness. Which of the following strategy options will use data from the knowledge
audit to develop employee profiles?
A. Expertise database
B. E-learning
C. Intranet
D. Corporate portal
E. Community of practice
4. Knowledge management requires a stratified process fir it to occur. What is the first step
in knowledge management?
A. Gather
B. Classify
C. Analyse
D. Share
5. The most successful solutions or problem-solving methods that have been developed by a
specific organization or industry best describes:
A. Organizational memory
B. Knowledge management
C. Best practices
D. Standard operating procedures
6. Technologies that uniquely and directly address the organizational learning and
knowledge management tasks include:
A. Enterprise systems, external and internal networks, databases, datamining, and
communication-based applications
B. Just office systems and knowledge work systems
C. Just external and internal networks and databases
D. Office systems, knowledge work systems (kws), group collaboration systems,
and ai applications
7. Mentorship is a relationship in which a more experienced or more knowledgeable person
helps to guide a less experienced or less knowledgeable person. Explain the benefits of
having a coaching and mentoring department in an organization.
8. Knowledge management is a critical aspect in the world of work today. Describe the
various elements that are considered in a knowledge system.
9. A report refers to a document usually used to write the findings a particular research. What
are steps used to write a proper report.

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Practical
You are working in a consultancy firm in the human resource department, there are 2 interns
that have joined your organization and your manager approaches you and requests you to
mentor the two new interns.
Resources
 Furniture (tables and chairs)
 Writing materials and pens
 Strategic plans
 Work plans /work programmes and schedules
 Organization polies and procedures
 human resource polices
 Guidelines and regulations

5.3.6.4 Tools, Equipment, Supplies and Materials

 Strategic plans
 human resource polices
 Guidelines and regulations
 Work plans /work programmes and schedules
 Organization polies and procedures
 Financial regulations, policies, guidelines, manuals and strategic plan.
 Storage equipment.
 Computers and computer software.
 Internet and intranet connectivity.

5.3.6.5 References

Alavi, M., & Leidner, D. E. (2001). Knowledge management and knowledge management
systems: Conceptual foundations and research issues. MIS quarterly, 107-136.

Gold, A. H., Malhotra, A., & Segars, A. H. (2001). Knowledge management: An organizational
capabilities perspective. Journal of management information systems, 18(1), 185-214.

Rubenstein-Montano, B., Liebowitz, J., Buchwalter, J., McCaw, D., Newman, B., Rebeck, K.,
& Team, T. K. M. M. (2001). A system thinking framework for knowledge
management. Decision support systems, 31(1), 5-16.

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5.3.7 Learning Outcome No 6: Conduct training impact assessment
5.3.7.1 Learning Activities
Learning Outcome, No6: Conduct training impact assessment
Learning Activities Special Instructions

6.1 Identification of training impact assessment objectives Observation

6.2 Development and dissemination of training impact assessment Projects
tools Review of portfolios
6.3 Preparation of training impact assessment report

5.3.7.2 Information Sheet No5/LO6: Conduct training impact assessment

Introduction
This learning outcome covers training impact assessment objectives, development and
dissemination of training impact assessment tools and preparation of training impact
assessment report.

Definition of key terms

Training need Assessment: Is the method of determining if a training need exists and, if it
does, what training is required to fill the gap.

Dissemination: Means to spread a message to the public without direct feedback from the
audience.

Content/Procedures/Methods/Illustrations

TRAINING IMPACT ASSESSMENT

Objectives of training impact assessment
 Train the right employees, with the right approach prioritize
 Training needs with the highest business impact
 Engage staff in continuous learning and development
 Make organizational change an easy transition
 Identify tools and methods you never considered before
 Achieve a greater return on investment

Training impact assessment tools

 Individual training reports
 Monitoring and evaluation reports
 Coaching and mentoring reports

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A training report will evaluate the positive and negative aspects of a training program after the
event has occurred.
The following is a process of writing a training impact assessment report
i. Explain to the trainees what made you or your team create such a report
ii. Determine what are the objectives and aim.
iii. Include information about your sample training report.
iv. Explain some results from the training report summary

Elements of a training impact assessment report

 Title page.
 Table of contents.
 Executive summary.
 Introduction.
 Discussion.
 Conclusion.
 Recommendations.
 References.

Training impact assessment report

Preparation of training impact assessment report
Step 1: Select the project to be assessed
Step 2: Conduct an evaluability assessment
Step 3: Prepare a research plan.
Step 4: Contract and staff the impact assessment
Step 5: Carry out the field research and analyse results
Step 6: Disseminate the impact assessment finding

Conclusion
This learning outcome covered training impact assessment objectives, Development and
dissemination of training impact assessment tools and preparation of training impact
assessment report.

Further Reading

Read more on impact training from Gordon, J., & Chadwick, K. (2007). Impact assessment of
capacity building and training: assessment framework and two case studies (Vol. 44).
Australian Centre for International Agricultural Research.

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5.3.7.3 Self-Assessment

Written assessment
1. You are a human resource manager and a trainer approaches you in your organization and
requests you to allow her to induct a mentoring session. Which of the following is not a
characteristic of a mentor?
A. Instructing/Developing Capabilities
B. Providing Corrective Feedback
C. Inspiring.
D. Oriented
2. In the world today, coaching and mentoring has been recommended almost in all the
organizations. Why is mentoring gaining in importance?
A. Its costs too must to mentor
B. Companies hire more and a higher proportion of untrained persons than they used
to.
C. People aren't as smart as they used to be, and they need more mentoring
D. Due to downsizing, many organizations do not have as many managers available to
mentor employees
3. Helen does as little work as possible. As a result, you and a few other people have to work
longer and harder to pick up the slack. Which approach might be most effective?
A. Tell Hellen she should quit because everyone resents her
B. Tell Hellen that she should do more work, and she'd better do it soon
C. Shun Hellen until she gets the idea that no one likes her because she's lazy
D. Talk with Hellen to see if she needs coaching or training
4. Ken gripes about everything and everyone. He moans about having too much work and
complains about low pay. Which type of difficult person is Ken?
A. Repulsive
B. High maintenance
C. Whiner
D. Backstabber
5. Training impact assessment report requires to be prepared in a sequence process. Describe
the Preparation of training impact assessment report
6. The training impact assessment report is a report written that indicates the findings of a
training. State 4 elements of a training impact assessment report.
7. As a trainer, discuss the objectives of training impact assessment
8. As an HR Manager, you have been tasked to develop and steer a newly formed HR
department. In your feasibility study of the company, you realize that millennials form 80%
of the total workforce. Discuss how you would effectively manage this group of personnel
in order to tap the maximum productivity from them.

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Case study
Employee training and development creates positive impact on basic functions of an
organisation to expand human capital and contend in a quickly changing business world. This
study aims to evaluate the effectiveness of employee training program in the MNC. Utilizing
the Kirkpatrick’s four levels of evaluation model, this study particularly inspects the responses
of the employees to the training programs, the level of employees learning, the employee’s
behaviour on the job effect of the training on the worker’s state of mind that is attitude of the
employees. The research was carried to evaluate the effectiveness of training program in
quality department at multinational company. This case study approach explores the
effectiveness of a training programme of an organisation by using Kirkpatrick model. The
research methodology used in this study was survey data collection method. The Data survey
questionnaire based on Kirkpatrick model. Present study includes all employees of Quality
department as sample for this study. Data analysis was carried out utilizing the SPSS 20
software and questionnaire reliability was tested using the (Cronbach's alpha) test and was
found more than (Alpha=0.7). A paired sample T-test was directed and it has been found that
the employees find the training program more effective. This study analysed experimentally
four stages of measuring training effectiveness with the help of questionnaire. The result of
hypothesis determines four levels have significant impact on training program. From this case
study, explain the stages used in measuring training effectiveness.

5.3.7.4 Tools, Equipment, Supplies and Materials

 Strategic plans
 Human resource polices
 Guidelines and regulations
 Work plans /work programmes and schedules
 Organization polies and procedures
 Financial regulations, policies, guidelines, manuals and strategic plan
 Storage equipment
 Internet and intranet connectivity

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5.3.7.5 References

Gordon, J., & Chadwick, K. (2007). Impact assessment of capacity building and training:
assessment framework and two case studies (Vol. 44). Australian Centre for
International Agricultural Research.

McDonald, B., & Boud, D. (2003). The impact of self-assessment on achievement: The effects
of self-assessment training on performance in external examinations. Assessment in
Education: Principles, Policy & Practice, 10(2), 209-220.

Ramsingh, D., Rinehart, J., Kain, Z., Strom, S., Canales, C., Alexander, B., & Cannesson, M.
(2015). Impact assessment of perioperative point-of-care ultrasound training on
anesthesiology residents. Anesthesiology: The Journal of the American Society of
Anesthesiologists, 123(3), 670-682.

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5.3.8 Learning Outcome No7: Review training and development programme
5.3.8.1 Learning Activities
Learning Outcome No7: Review training and development program
Learning Activities Special Instructions

7.1 Compiling recommendations in the training reports as per Observation

the SOPs Projects
7.2 Review of training program as per the recommendations in Review of portfolios
the training reports

5.3.8.2 Information Sheet No5/LO 7: Review training and development program

Introduction
This learning outcome covers the review of training and development program. It contains the
compiling of recommendations in the training reports and the review of training program.

Definition of key terms

Reports: Reports in training are a description of the occurrences that took place at a training
program that has occurred, it contains both the positive and negative insights.

Review: A review in training refers to the assessment and evaluation of employees’

achievement, and determining how much they were able to gain from the process.

Content/Procedures/Methods/Illustrations

TRAINING REPORTS
Training reports are a description of the occurrences that took place at a training program that
has recently taken place; it contains both the positive and negative insights of the event.
Management development refers to the structured process of controlling the growth of
organizational resources to enable achievement of set objectives. Management development
program include different programs that are conducted by skilled professionals including;
 Mentorship
 Leadership programs
 Short-term courses
 Training
 Coaching
 Guiding

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Characteristics of management development
i. It is a long-term process
ii. It is a continuous exercise that has no end
iii. It is a structured process that involve acquisition of knowledge
iv. Aims at helping managers grow into full potential

Management development programs’ objectives

 Management development programs aim at enabling organizations to be able to acquire
and retain the needed number of managers who are skilled enough to contribute in
performance management.
 Sustainability of the management’s careers
 Top management performance improvement
 Ensure optimization of managerial resources
 Place skilled and most qualified talents in the executive positions
 Support managers in trying to acquire more knowledge and skills

Compiling recommendations in the training reports

Recommendations are done after reviewing the training reports by the manager. According to
each employee’s report, the manager is able to decide what to recommend about each
employee. Those that are yet to acquire the knowledge required, the manager might recommend
further training while those whose report suggest that they are well equipped and fully grasped
the content trained will proceed to perform the task that follows.

How a training report is written

i. Educate the employees on the importance of writing a report
ii. Establish the aims and objectives of the training
iii. Include all necessary observations from training
iv. Create a summary of the report for easy presentation

Contents of a training report

 Background information
 Introduction
 Training logic
 Both general and specific objectives of the training
 Methods used in training
 Materials used
 Evaluation and feedback of each trainee

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Training program
Training equips employees with skills necessary to perform a particular task. Training
evaluation entails a structured process of analysing how efficient and effective a training
program is and if they are meant to contribute to the achievement of the organizational goals.

Review the training program

Importance/reasons for review
Review of training helps identify the knowledge gaps and possible future improvements, the
process helps in determining how effective the training process was; whether it should be
repeated or cancelled. Training review helps in production improvement and employee
motivation through engagement.

Steps of training evaluation

i. Selection of the appropriate training evaluation model
There exist different training evaluation models which suit different areas hence it is important
to study and choose the most appropriate model that will perform according to the
requirements. Some of the models include;
 The CIRO model
 Phillips ROI model
 Kirkpatrick’s Four-level training evaluation model

ii. Establish the measure of training effectiveness

To achieve the best evaluation results, the manager should first identify what outcome will be
considered effective and lead to a concluded successful training program. Determinants of a
successful training include;
 Efficiency
 Financial results
 Skills and knowledge
 Experience in learning
 Employee satisfaction
 Behavioural impacts

iii. Begin the data collection process

Choose the right data collection method for effective results;
 Interviews
 Focus groups
 Questionnaires
 Observation

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 iv. Data examination
This is the final stage and it entails analysing of information collected and reporting the
findings. A report is written to be used in future as reference.

Technology and training evaluation

Conducting training evaluation through digital technology can assist the managers to establish
whether the training programs are effective. Through technology the manager can be able to;
 Observe behaviour and familiar feedbacks
 Send the reports to the rest of the team
 Carry out survey on the training feedback
 Conduct new employees’ training
 Analyse training programs that will cover employee training needs

Conclusion
This learning outcome covered the compiling of recommendations in the training reports,
content in training reports and how they are written, training programs and their importance,
steps of training evaluation and the review of training program.

Further Reading

Student is required to research on evaluation models

5.3.8.3 Self-Assessment

Written assessment
1. In human resource management, management development program includes the
following, which of the listed activities is not a management development program?
A. Coaching
B. Leadership courses
C. Mentoring
D. Planning
2. The following include determinants of a successful training except one
A. Skills and knowledge
B. Experience in learning
C. Data collection
D. Employee satisfaction

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3. The following include steps in training evaluation except one
A. Selection of the appropriate training evaluation model
B. Include all necessary observations from training
C. Establish the measure of training effectiveness
D. Begin the data collection process
4. The following are terms used in training and development program, which of the stated
terms is not associated with the topic?
A. Coaching
B. Review
C. Report
D. Reassign
5. As a human resource officer, state how you would write a training report.
6. There are various types of data collection methods. List 4 data collection methods.
7. Training Evaluation is the attempt to obtain relevant information on the effects of a training
program. State 3 models of training evaluation.
8. Discuss compiling recommendations for training reports

Practical
As a supervisor of a manufacturing company;
1. Write a report on a training program recently conducted
2. Conduct a review of the report
Resources
1. Organization policies
2. Employees appraisal forms
3. Writing materials

5.3.8.4 Tools, Equipment, Supplies and Materials

 Focus groups
 Internet
 Samples

5.3.8.5 References

Amsa, P. (1986). Organizational culture and work group behaviour: an empirical

study. Journal of Management Studies, 23(3), 347-362.

Kocher, M. G., & Sutter, M. (2005). The decision maker matters: Individual versus group
behaviour in experimental beauty‐contest games. The Economic Journal, 115(500),
200-223.
Thornton, A., & Clutton-Brock, T. (2011). Social learning and the development of individual
and group behaviour in mammal societies. Philosophical Transactions of the Royal
Society B: Biological Sciences, 366(1567), 978-987.

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5.3.9 Learning Outcome No 8: Manage Professional Growth and Career Development in
the workplace
5.3.9.1 Learning Activities
Learning Outcome No8: Manage professional growth and career development in the
workplace
Learning Activities Special Instructions

8.1. Assessment and identification of personal training needs Observation

8.2. Identification and availing of training and career Projects
opportunities Review of portfolios
8.3. Mobilization and allocation of resources for training
8.4. Obtaining and renewal of licensees and certifications
relevant to job and career
8.5. Pursuing of personal growth towards improving the
qualifications set for the profession
8.6. Management of work priorities and commitments based
on requirement of the job and workplace policy
8.7. Recognitions are sought as proof of career advancement
in line with professional requirements

5.3.9.2 Information Sheet No5/LO8: Manage professional growth and career

development in the workplace

Introduction
This learning outcome covers the assessment and identification of personal training needs,
training and career opportunities, allocation of resources, license obtainment, personal growth,
work priorities and sought of recognitions.

Definition of key terms

Career development: Career development involves the process where employees make a
personal improvement in their work, transition and acquire growth in their career.

Certifications: This refers to the process of providing a person with an official document
confirming a particular achievement.

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Content/Procedures/Methods/Illustrations

CAREER DEVELOPMENT
Introduction
Career development involves the process where employees make a personal improvement in
their work, transition and acquire growth in their career. Through career management, the
organization can help its employees to come up with career plans, goals and competencies and
create an environment for these goals to be achieved. It is the responsibility of the employee,
the managers and the organization to ensure the achievement of this plan.

Steps in career development

i. Career needs identification
Organizations carry out seminars and workshops to test the employees’ abilities; with
the help of the human resource manager the employees are able to make decisions on
career development paths.
ii. Development of career opportunities
Through job evaluation, employees’ strengths are identified hence the selection of
suitable employment posts. The manager communicates the available opportunities
with the employees and gives them a chance to state their area of interest so as to be
given an opportunity in the near future.
iii. Employee needs and opportunities combination
Employment vacancies available and employee requirements are aligned so as to
determine how suitable the person is for the given position in the organization. To
completely ensure that the organizational standards are met, the process is accompanied
with training and constant performance evaluation. The important methods used here
include; - Career guidance and counselling
- Objectives management
iv. Monitoring
Constant checking up and monitoring the career development process is important to
ensure there is progress and incase of any inconveniences, the duties should be
reassigned.

Ways of career development

 Training
 Job rotation: Through job rotation and exposure, an employee is able to acquire more
skills and knowledge that will contribute to career development
 Counselling: Through seeking guidance from occupational counsellors or superiors, an
employee is able to get direction on how to achieve the desired occupation.
 Resignation: An employee is allowed to resign and go after a better job opportunity that
is in line with his/her career goals.
 Responsibility definition
 Periodic review of performance: The employee must always ensure to give quality work
performance for career development.

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  Feedback
 Performance planning

Benefits of career development

Career development benefits the organization in the following ways;
 The organization gains a better corporate image; it gains a good reputation by helping
its employees with growth.
 Retains the talented skills, when employees are supported by the organization, there
will be less or no turnover hence all the skilled employees will be retained while
attracting others at the same time.
 The organization becomes more effective as the management is well informed of the
employees’ strengths and weaknesses enabling them to allocate work accordingly.
 Creates diversity and growth
 Higher quantity and better quality of performance of duties are achieved; this is due to
the higher levels of employee commitment and involvement at the workplace.

Career development benefits the employee in the following ways;

 Employees are able to get guided towards their career goals
 Through the organizations career development system, employees are able to make
realistic goals that can be accomplished in the near future
 The career development process leads to job enrichment hence employee satisfaction
 The process provides a communication channel between the employees and
management; hence they are able to air their opinions.
 As a result of the feedback received from the process, employees are made aware of
areas that they need to improve on.

Career development benefits the managers in the following ways;

 Through employee career development, managers are able to review and develop their
own careers too.
 Managers are able to get a better understanding of the employees’ strengths making it
easier to manage them.
 There’s improved communication between managers and employees.
 There’s improvement in the general organizational culture.
 Career development helps to better performance evaluation leading to better planning
of the organization’s future.
 Managers get a better understanding of the skills of the workers and are able to retain
the talented ones.

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Advantages and limitations of professional growth and career development in the work
place
Advantages
 Positive work environment
 Job satisfaction
 Reduced costs
 Better communication

Limitations
 Lack of resources
 Lack of commitment from the management
 Organizational culture
 Change in occupational needs
 Lack of employment opportunities

Training needs
Assessment and identification of personal training needs in line with the requirements of
the job
The organization’s needs for employees’ career development are because of the following
reasons;
 Availability of skilled labour: Career development is an organizational strategic plan
to have readily available skilled employees whenever they are needed to help achieve
the set goals; this also enables them to allocate the right job to the most talented
employee
 Increasing employee satisfaction: Career guidance is a form of employee motivation
and leads to employment satisfaction as the employees feel the sense of value and
appreciation when the organization is involved in the growth of their careers.
 Creates diversity: Effective career development allows the organization to have a
workforce with all kinds of representations including women, different races and other
minorities.
 Attracting and retaining skilled personnel: Skilled personnel are what every
organization is looking for, since this skilled labour is also looking to work for an
organization that is mindful of their personal growth and offers development
opportunities, organizations that support career development will attract these
employees while at the same time retain those within.
 Organizational goodwill: Career development in an organization improves the image
of the organization, promotes workplace peace and positive working environment
hence organizational goodwill.

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Identifying and availing training and career opportunities based on job requirements.
The following include ways to identify employee training and development needs;
i. Having a clear understanding of employee training and development: Training
categories include personal development, job and organization training. Understanding
employee training and development needs will help a manager decide what type of
training an employee requires.
ii. Job analysis: Job analysis is used in human resources to identify the activities being
carried out by employees at the workplace and if they are contributing to the
achievement of the organization’s goals, through these analyses training needs are
identified.
iii. Workplace injuries: When there is occurrence of many accidents at the workplace the
management needs to conduct a training session on workplace safety and how to handle
Equipments so as to avoid more injuries.
iv. Goals and objectives: Allocation of responsibilities to individual employees enables the
management to set specific targets that is required, this makes it easier to evaluate each
employee’s performance and identify if there is need for training.
v. Communication: Through communicating with employees, a manager is able to engage
them and find out what areas they need to be trained on.
vi. New technology: Employees require training on how to handle new equipments brought
into the organization.

Mobilization and allocation of resources for training based on organizations skills needs.
Reasons for effective allocation of resources
 Flexibility; organizations deal with different types and number of projects; it is
important for the resources to be flexible enough to be able to be used in different
projects
 Cost; effective resource allocation helps save money as the allocation is done based on
skills
 Strategic planning; proper resource allocation is very effective in the achievement of
the long-term organizational objectives
 Motivation; efficient and fair allocation of resources can serve as a source of motivation
for employees to perform
 Improve production; this is the main reason for resource allocation, without necessary
resources, organizations produce poor outputs.
 Time management; through resource allocation, a manager is able to determine the
amount of time used to complete a task.

Steps of resource allocation

i. Split the project into simple tasks
ii. Resource allocation
iii. Establish resource qualities
iv. Equalize the resources
v. Reallocation

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 vi. Monitoring

Licensees and certifications

Obtaining licensees and certifications relevant to the job and career
Professional certification and licenses are important because;
 They help one acquire knowledge and skills necessary for performing a particular job
 One is able to learn and exhaust all details of a career they are pursuing
 One obtains maximum benefits from a variety of areas.
 Leadership skills, through certification one is able to acquire general management
skills.

Certification process;
i. Obtainment and documentation of experience
ii. Join a program
iii. Take the course, learn and sit for the exams
iv. Receive certification after merit

Renewing licenses and certifications relevant to the job and career.

Earning a license or certificate requires hard work and competence, maintaining the license
indicates commitment and renewal is proves continuous commitment. The following are the
importance of license and certifications renewal;
 Constant renewal keeps the employee always aware of any changes within the field
 Technology is always changing, so by renewing certifications employees are engaged
and involved in developing the new procedures.
 It is a job requirement that indicates commitment

Personal growth
Pursuing of personal growth towards improving the qualifications set for the profession.
Personal growth entails continuous development in one’s career path, it involves continuous
increment of knowledge and abilities that will contribute to development. It is important to
pursue personal grow as it is what leads one to succeed and fulfil both emotional and
occupational satisfaction. One can pursue personal growth and development by;
 Understanding the goals, one wants to achieve
 Analyse the skills and qualities the person contains
 Practice discipline in time management
 Look for resources that will contribute to the achievement of the set goals
 Create a plan on how to achieve growth and prioritize it

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Management of work priorities and commitments based on requirement of the job and
workplace policy
Ways of managing work priorities and commitments include;
 Understand the task at hand
 Institute the priorities
 Plan and allocate the amount of time to be used in each task
 Create daily agendas
 Communication management
 Come up with means to reduce distractions
 Avoid postponing tasks
 Keep a neat and organized work space

Recognitions are sought as proof of career advancement in line with professional

requirements
Employee recognition is proof of career advancement as it is an indication of great performance
by an employee. Rewards are given to employees when they significantly contribute to the
achievement of organizational objectives; recognition is a form of reward. After an employee
has been recognized due to his or her quality performance, the management develops an interest
and monitors the employee’s performance, this may lead to a salary increment or future
promotion, hence career advancement and development.

Importance of employee recognition

 Recognition is important in employee motivation as it shows that their contribution in
the organization is seen and valued.
 Leads to employee satisfaction
 Improves productivity, after being motivated through recognition, employees work
harder to give better performance

Conclusion
This learning outcome covered the assessment and identification of personal training needs,
steps involved I career development, training and career opportunities, allocation of resources,
license obtainment, personal growth, work priorities and sought of recognitions.

Further Reading

Student is expected to further research and read on career development organizational

strategies

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5.3.9.3 Self-Assessment

Written assessment
1. The following contain list of steps in career development, except;
A. Monitoring
B. Career needs identification
C. Employee needs and opportunities combination
D. Job analysis
2. In human resource management there are three beneficiaries of career development, state
the party below that does not benefit from career development.
A. Competitors
B. The organization
C. Employee
D. Managers
3. Resources are a source from which a benefit is produced and that has some utility. The
following include types of resources used while performing tasks in an organization,
except;
A. Labour
B. Miscellaneous
C. Project
D. Equipments
4. Professional growth refers to gaining new skills and work experience that can help you
reach a goal career. Name one limitation of professional growth
A. Positive work environment
B. Organizational culture
C. Job satisfaction
D. Reduced costs
5. Career development is essential when it comes to employee motivation in human resource
management. Name the tree parties responsible for employees’ career development
6. As a human resource manager, you come across employees with goals such as professional
growth and development; state some of the limitations these employees are likely to face
while pursuing their goals.
7. Employee needs and opportunities combination is a step-in career development, state two
key techniques applied at this stage;
8. As a human resource manager, while trying to identify employee training needs you need
to recognize the categories of training, namely;

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Practical Assessment
You are required as the human resource manager of a consultancy firm to:
1. Plan and conduct job evaluation on the employees.
Resources
1. Organization policies
2. Employees appraisal forms
3. Writing materials

5.3.9.4 Tools, Equipment, Supplies and Materials

 Documents
 Books
 Internet
 Discussion

5.3.9.5 References

Megginson, D. and Clutterbuck, D. (2005). Techniques for coaching and mentoring.

Amsterdam; London: Elsevier Butterworth Heinemann
Michael Armstrong (2004). Human Resource Management Practice. 9th edition
Withaar, L. (2019). Key Human Resource Management Policies & Procedures. Small Business
- Chron.com. Retrieved 23 September 2020

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 CHAPTER 6: PREPARE HUMAN RESOURCE BUDGETS

6.1 Introduction
This unit specifies the competencies required to undertake financial management. It involves
budgeting for the HR Function activities, aligning operations to financial regulations and
maintaining financial records.

6.2 Performance Standard

It involves budgeting for the HR Function activities, aligning operations to financial regulations
and maintaining financial records as per the organization procedures, as per the organization
guidelines and per the SOPs.

6.3 Learning Outcomes

6.3.1 List of Learning Outcomes
a) Budget for the Human Resource Function activities
b) Align operations to financial regulations
c) Maintain financial records

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6.3.2 Learning Outcome No1: Budget for the Human Resource function activities
6.3.2.1 Learning Activities

Learning Outcome No1: Budget for the Human Resource function activities

Learning Activities Special Instructions

1.1 Identification of the budgeting cycle as per the Observation

organization procedures. Projects
1.2 Identification of Human resource functions and activities Review of portfolios
to be funded.
1.3 Reviewing of prior budget as per the organization
guidelines.
1.4 Costing of consolidated functions and activities as per the
SOPs.
1.5 Drawing of the budget as per the organization’s
procedures.
1.6 Identification of areas of flexibility in the budget.
1.7 Seeking budget support/funding.
1.8 Disbursement of funds.
1.9 Implementation, monitoring, evaluation and reporting

6.3.2.2 Information Sheet No6/ Lo 1: Budget for the Human Resource function activities

Introduction
This learning outcome covers the activities that revolve around budgeting in human resource
management. These activities include; the budget cycle relative to the organizational
procedures and the identified human resources functions and actions to be funded. It also
involves reviewing the previous budget as per the guidelines of the organization and the costing
of functions and activities consolidated as per the SOPs. Other activities to be considered are a
budget to be drawn, procedures of the organization, and identifying the areas which are flexible
within the budget. Finally, the chapter will cover how to support and to funds of a budget are
sort and how funds are disbursed.

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Definition of Key terms
Human Resource budget: This refers to funds allocated by the HR to all the processes in an
organization. This budget uses information about all the organizational departments, results on
performance, and existing historical data of every department.

Budgeting cycle: These are simply the steps in which an organization or an individual must
develop a formulated budget. This term can also refer to a budget; this begins from when the
step a budget is designed to assess it.

Content/ Procedure/ Methods/ Illustrations

Budget cycle
As previously outlined, the budget cycle can be defined as the steps or cycles in which an
individual or an organization must follow to come up with a formulated budget. This cycle
revolves around the creation of the evaluation of the budget. There are four main segments
entailed in this cycle; these segments include; preparation of the budget and submitting it to
the top management level for approval. The second phase is where the relevant management
approves the account after the stakeholders have extensively discussed. The third phase, after
approval of the budget, is execution; this phase takes place at the beginning of the accounting
year. The last phase is evaluating the budget; this involves making regular evaluations and
budget monitoring.

Figure 15 budget cycle from efinancemanagement.com

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Importance /uses of human resource budget
Human resource budget is important in the following ways;
 The budget aids in the prevention of hiring more staffs in the organization
 It also aids in the organization understanding the needs of their staffs
 It also prevents the organization from employing lesser staffs to work in the
organization
 It helps in the attraction of top management into the organization
 It aids in creating a plan that satisfies the talents; hence there is a reduction in turnover.

The human resource budget has several uses, they include;

 Funds allocated for making payments to staffs,
 Funds allocated for awarding benefits to retiring staffs,
 Funds allocated for talent or top-level management,
 Funds which set aside for the training, seminars, and workshops,
 Funds which are allocated for hiring for staffs in an organization,
 Funds allocated for the planning of succession and wellness of employees and also
 Funds allocated for engagement in the workforce.

Human resource functions and activities

Factors to be considered when selecting HR functions to be funded
In selecting HR functions to be funded, the following factors should be considered;
 A track of employees' attendance and time-keeping
 The organizational capabilities and customs
 The history of the job and pay
 The benefits in regards to management
 The general performance of the organization

Human resource budget activities.

Some of the human resource budget activities include;
 The cost of overtime
 The training and development of employees
 Complex forecasting of the number of employees
 New beneficial programs
 The costs of payroll

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Prior budget
What is the importance of reviewing a previous budget?
A budget review can explain how money allocated for different budgeting categories is
assessed, adjusted, and fine-tuned. This aids in giving an insight into some of the financial
habits and areas that need improvement.
 Budget review aids in the management of spending habits that may be unfavourable to
the organization
 It aids in increasing savings since there will be reduced unnecessary expenses
 It helps in making goals in the organization which are financial long-term
 Budget review is also an important component that aids in the proper management of
money and also an element that is key in personal finance.
 It also assists in realizing whenever one drifts from the track in pursuit of achieving
financial dreams.
 It aids in identifying the areas that need to be improved in matters of spending.
 It also aids in viewing the organizational finances beyond the daily expenses and
improvement in financial decisions about the future.

Costing of consolidated functions and activities

How to cost HR activities
HR activities can be costed based on the use of;
 The estimated value of time of the employee
 Cost of opportunity
 Analysis of conjoint
 Analysis of sensitivity and break-even
 Money value over time

Guidelines to follow when costing HR activities

This involves how activities are awarded cost; several considerations are put in place;
 Monitoring of the departmental cost
 Measure the impacts and the success in general
 The prediction of the future cost
 Calculating the return on investment (ROI)

Drawing of the budget

Process of drawing a budget
There are five steps that aid in the process of drawing a budget, these steps include;
i. Income identification: Important that one understands and accounts for the income
earned every month. This is deduced after tax is deducted to get the net income in the
business. Every coin that is accounted for as income should be accounted for and
considered.
ii. Calculation of expenses: This is giving a sum of all the expenses attached to the
business; these expenses may include; transportation, house rent, electricity bills, and
salaries.

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 iii. Calculating the difference: The next step is to calculate the difference between savings
and expenses. This assists in identifying whether a company is operating under losses,
or there are profits made.
iv. Determining on what to do with the savings earned: The organization may opt to plow
back the profits and savings for expansion of the business. The savings can also be used
for other activities that the organization may have outlined.
v. Make that a habit: Often review the budget at least weekly to keep track of the
organization saving. This helps in keeping track of the spending habits and also sticking
to financial goals.

Characteristics of a good budget

For a budget to be termed as good, it must comprise of the following characteristics;
 The budget must address the goals of the enterprise: A good budget must comprise the
long- and short-term goals of a business. It should ensure that the business does not
replicate the previous results or produce lower results indicating losses made. Rather,
it should address an organization's goals and plans in place.
 Must be a tool of motivation: A good budget should encourage and inspire employees
to attain organizational goals. Further, it should encourage working towards improving
the organization.
 Must have managerial support: A good budget must ensure that employees from all
levels of management in the organization support it. This helps in enhancing teamwork.
 Should be flexible: A flexible budget allows the organization to carry out some of the
maintenance work that was never anticipated. If a budget is rigid, it creates room for
excuses for unplanned and unforeseen maintenance work.
 A good budget should be correct representation: It should correctly represent activities
that are anticipated to occur. This budget to unquestionably and accurately represent
the actual occurrence.

Areas of flexibility in budget

A flexible budget can be adjusted to incorporate the levels of volume and activities of an
organization. This budget is also known as a variable budget. Some areas that can be adjusted
in a budget are the revenues and expenses flow of cash; this they are prone to change based on
the change in output. This type of budget can be used in management to predict some of the
best and worst cases that may result in the upcoming or next accounting period.

Budget Support/funding
 Lobbying for budget funding and support from management: This is whereby and the
organization seeks an intermediary to aid with funds needed for the operations of the
organization. An organization may be experiencing a shortage in its budget, thus
requiring a third party in aid with funds. There are two significant types of lobbying
which include;
 Disbursement of funds: This can be defined as an organization paying our money and
delivering funds from banks' institutions or funds from other sources. Some

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 disbursements examples include; cash from expenditure, payment of dividend, or cash
paid for business running. Disbursement works so that payment is made in the form of
cash or equivalents of cash within a set period. The duration can be either yearly or
weekly. The transactions are recorded in a ledger for posting. A disbursement entry
should contain the date transaction occurred, name of the payee, credited or debited
amount, methods of payment, payment purpose, and effects on the overall balance in
cash of a firm.

Budget implementation, monitoring, evaluation, and report

Timelines of budget monitoring: A budget needs to be monitored to ensure that it operates
within the required timeline or duration. Budget monitoring should be done often, at least twice
in a month, to ensure a budget review. During the monitoring process, there is a need to include
some critical information that aids in this process. This information includes; the remaining
balance of the annual balance, commitments of expenditure in the future, updated actual
expenditure, and the outturn forecasted.

Identifying excesses or deficiencies in budget: A budget deficit can be defined as the state
where the expenses are more than the revenues in a budget. This occurs as a result of an
organization spending more than what it earns hence affecting the operations. Deficiencies in
a budget lead to an organization incurring losses and thus operating under losses. On the other
hand, excesses in a budget occur when a company realized more revenues compared to
expenses in a given financial year. When this happens, an organization operates under profits
whereby there are more profits earned.

Recommendations on how to improve the budget for the next budgeting cycle
There are several ways to ensure that a budget is improved for the next cycle, they include;
 The goals to be outlined should be clear and precise
 The entire organizational team should be involved
 Communicate on the goals to be included early and often
 Ensure flexibility in the forecasting and budgeting process
 The rolling budgets and budgets to be implemented
 Plan on the various scenarios that will be incorporated.

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Figure 16; budget from Fmarchforsciencemobile.org

Conclusion
This learning outcome covered the identification of budget cycle relative to the organizational
procedures and the identified human resources functions and funded activities. It involved a
review of the previous budget as per the guidelines of the organization and the costing of
functions and activities consolidated as per the SOPs. Other activities considered are a budget
to be drawn as the procedures of the organization and identified the areas which were flexible
within the budget. Finally, the chapter covered on how to support and to funds of a budget are
sort and how funds were disbursed.

Further reading

Read more on budget cycle relative to the organizational procedures

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6.3.2.3 Self- assessment

Written assessment
1. Paul is a human resource manager in Graccis Hotel in New York; he intends to take part in
the formulation of the Hotel's budget that will be effective in operations. Which of the
following is a stage in budget formulation?
A. Budget flexibility
B. Integration of targets
C. Determine what to do with earned savings
D. Investment policy
2. You are assigned the task to chair the budget formulation committee in your organization.
A conflict arises that managerial heads should not be questioned on how they spend cash in
the organization. State on the way to resolve this conflict
A. Develop a budget that keeps a record of all expenditures and revenues
unquestionably
B. Allow the managers to have their way
C. Dismiss the meeting
D. Give up and reassign the task
3. Suppose you are a finance manager, and you are required to review a budget for the past
two years of the organization. How can we determine whether the budget can be termed as
good?
A. The budget but be static and followed to the latter
B. The budget should favour the top management and be at liberty to make adjustments
that suit them
C. The budget acts as a motivational tool for the organization
D. The budget is concerned in accomplishing the day to day incomes
4. Assume you are a student working in a meat factory as an intern during your attachment,
you realize that the company is struggling to utilize their savings. What advice would you
give the managerial team?
A. Share the savings among themselves
B. Plough the profit back to the company for the extension of the operations
C. Save the savings in the bank
D. Increase the employees' salaries
5. What is the process involved in the development of a human resource budget?
6. As an HR, you are required to state the process of drawing a project, highlight the process
that occurs?
7. A human resource manager discusses the advantages that result from reviewing a human
resource budget

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Practical Questions
The candidate is required to;
1. Visit an organization
2. Analyse the budget of the organization

Resources
1. Company's current budget
2. Writing materials and pens
3. Furniture (tables and chairs)

6.3.2.4 Tools/Equipment/material
 Computer
 Excel worksheets
 Company's financial statements
 Calculator

6.3.2.5 References

Borad, S. (2020). Budgeting Cycle – Meaning, Importance, Phases, and More.

EFinanceManagement.com. Retrieved 22 September 2020,

Inc. Trust and Security, P. (2018). 5 Simple Steps to Create a Successful Budget | Payoff Life.
Payoff Life. Retrieved 22 September 2020,

Liao, N. (2020). CMA Exam Study Notes: Characteristics of Successful Budgeting. CMA
Coach. Retrieved 22 September 2020, from https://www.cmacoach.com/cma-exam-
study-notes-characteristics-of-successful-budgeting/.

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6.3.3 Learning Outcome No 2: Align operations to financial regulations
6.3.3.1 Learning Activities

Learning Outcome No 2: Align operations to financial regulations

Learning Activities Special Instructions

2.1. Familiarizing with financial regulations Observation

2.2. Familiarizing with the Human Resource financial Projects
operations Review of portfolios
2.3. Development of tools for reviewing financial operations
and administration
2.4. Identification of operation processes requiring
adjustments and documentation.
2.5. Making recommendations to the management
2.6. Implementation of management decisions on alignment.
2.7. Monitoring, evaluation and reporting of Implementation

6.3.3.2 Information Sheet No6/ Lo 1: Budget for the Human Resource function activities

Introduction
This learning outcome covers activities that revolve around aligning operations to financial
regulations. These activities include; be familiar with financial rules and financial procedures
involved in human resources. It also consists of developing tools used for administration and
financial operations reviewing. The learning outcome will also identify processes of operation
that require to be adjusted and documented. Other activities to be considered are making
recommendations for management and implementing management decisions on alignment.

Definition of key terms

Financial records: These are formal records that represent the transactions of an organization,
an individual, or a business in general. Examples of existing financial records are; income
statements, profit and loss account, cash flow, and earning retained statements and statements
of financial position.

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Content/ Procedure/ Methods/ Illustrations

FINANCIAL RECORDS
 Financial Management Act: This is an act that regulates financial management in both
the provincial and government forms of governance. The act aids in ensuring all
revenues, assets, expenditures, and assets of the provincial or national governments are
effectively and effectively managed. It also provides responsibilities to the entrusted
persons with financial management in the governments.
 Finance regulations: This form of regulation or supervision ensures financial
institutions are subjected to certain restrictions, guidelines, or requirements whose main
is to maintain financial systems integrity and stability. Governmental or non-
governmental organizations handle financial regulations. Aims of financial constraints
are;
 Market confidence: Maintenance of trust in financial systems
 Financial stability: Contributes to stability enhancement and protection of financial
systems
 Consumer protection: Ensuring customers are secured with the appropriate degree of
protection.

Human Resource Financial Operations

 Personal emoluments: This can be defined as compensation based on activity’s length
and time, accounting from employment, service, and or holding of an office.
Emoluments tend to vary from type and length of performed service. It can also be
defined in simple terms as fees, profit, or salary received from work or office, services
compensation.
 Training and development: Training refers to a setup that is systematic for instructing
and teaching employees technical knowledge matters and how they relate to their job.
The main reason for training is for the improvement of employee’s efficiency. On the
other hand, employee’s development is general growth is education, holistic and
maturity among employees in managerial positions

Advantages of training and development to employees;

 Job satisfaction and morale increases among employees
 Employees motivation increases
 Strategies and products innovation increases
 The capacity of adopting new technology and methods increases
 Products and strategies innovation increases
 Welfare

These are activities and measures taken for employees’ comfort and improvement provided
above wages. Labour welfares are services and facilities that an employer executes to
employees along with employees’ salaries and wages. Examples of employees’ welfare;
monetary provision, acquisition of insurance covers for employees, monitoring conditions of

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work, and protective gear. The main advantage of welfare is the retention of employees as
welfare aids in ensuring their motivation and morale. Welfare objectives are;

 Provision of improved life and health to employees

 Aids in ensuring employees are happy and satisfied
 Relieving employees from industrial fatigue and improvement of employees’ cultural
and intellectual living conditions,
 Statutory deductions and remittances

Statutory deductions are taxes taken from your pay and paid to the government, while
remittance is the payment of money owed in taxes to the government for each employee.
Some of the statutory deductions in Kenya;
 Income Tax (PAYE) which is paid to KRA
 NHIF National Hospital Insurance Fund, this a medical cover to employees
 NSSF National Social Security Fund is a scheme that provides employees with
retirement benefits both in formal and informal sectors.
 HELB Higher Education Loans Board, this a statutory deduction to employees who
were disbursed with loans while in colleges and universities. The loanee is required to
pay once employed.
 Medical and Pension management

Pension is defined as regular payment done by the state to a specific group of people over
retirement age to ensure their sustenance without working. The standard retirement age in
Kenya is 60, but some employees cannot work until early retirement. This is known as retire
due to sickness. Since one is not entitled Pension before retirement age, regardless of the
situation in hand, ill-health retirees are entailed other state benefits, e.g., universal credit
(UC), Employment and Support Allowance (ESA) or Statutory Sick Pay (SSP). If one is
seriously ill and has a short duration to live, less than a year, acquisition of the whole Pension
as a lump sum is allowed.

Tools for reviewing financial operations

The following tools are essential for analysing the financial statements of an organization
 Statements of common size: When preparing common size statements, the only
percentage is considered.
 Cash flow analysis: This analysis is based on how balances of cash and bank move.
This implies that in cash flow analysis movement of money is considered compared to
that of working capital. Types of cash flows are actual and notional cash flows
 Ratio analysis: Attempts to develop a meaningful relationship between item groups in
the P&L account or a balance sheet. This analysis is useful to both internal and external
parties.
 Analysis of fund flow: This analysis indicates sources of funds and usage during the
review period. It also gives a highlight of changes in the company’s financial structure

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  CVA analysis: This analysis discloses on relationships that prevail among costs, sales,
and profits. Divisions of cost are fixed and variable costs. Sales and variable costs have
a constant relationship. Cost analysis allows management for better planning of profits.
 Statements of changes in working capital: They identify the extent of increase and
decrease of working capital. To derive the;
Net-working capital= sum of current liabilities- the sum of current assets

 Comparative statements: They deal with comparing of profit and loss accounts and
accounts of the financial position of different items for more than two periods. Any
financial statement can be outlined in comparative statement form such as; comparative
statement of financial position, comparative statement of cost of production, and
comparative P&L account.

Adjustments to operation processes

Identification of operational processes that need to be reviewed
For operations of an organization to be effective and timely, they need to follow a cycle. The
following are steps that need to adhere;
i. Identification and mapping of current processes: Start by defining the business process; this
aids in understanding the daily working of the business.
ii. Analyse the processes by communicating with the business stakeholder; this is inclusive of
customers- this is achieved by having a series of meetings with staff and stakeholders and
have brainstorming sessions. This will give great insight into areas that need improvement.
iii. Mapping of new plans and objectives: Set up objectives that are realistic and measurable,
aligning with the overall goals of a business.
iv. Finding out how advancement in technology fits the new plan: An effective BPR should be
driven by technology for more efficient processes. Examples of such technologies are;
customer relationship management (CRM) and Systems for file sharing and management
of projects.

Suggest ways to review operation processes

The following are ways of reviewing processes of operation;
 Knowledge of current process: One needs to understand the reasons why the process is
at its current state
 Knowledge of reasons for changing the process: The main reasons why a process should
be changed is to reduce cost or variations
 Identification of changes to be made: There should be a clear articulation of the new
process
 Obtaining feedback and buy-in from stakeholders who are affected: All affected
individuals should be allowed to give a view and feedback in regards to changes made
 Revalidating the process discipline, data, and systems measurement for the change:
There should be a certainty that processes are followed, there is the availability of data
and systems of measurement are capable in the provision of data with good use of
managerial decisions

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  Change training: This involves the training of all operators responsible and affected.
 Declaration of clean line and execution of change: This step is critical in keeping tracks
of changes and analytically validating their effectiveness.
 Measuring, analysing, improving, and controlling processes.

Recommendations to management
This refers to the determination of condition, intensity level, restrictions, conditions, or activity
allowances proposed for an area of the project.
Examples of recommendations for human resource management include;
 Alignment of business strategies with internal and external factors
 Ensuring there is an alignment between talent strategies and overall plan of the
company
 Be proactive ahead of your competitors
 Evaluation and execution of the essential training
 Assessment of workforce capabilities using various tools

Implementation of Management decisions

Drafting of policies to support management decisions
These are guidelines used by managers and supervisors as points of reference in staff
management. There are key elements in policies which include;
 The policy of equal opportunities
 Codes of conduct
 Benefits
 Company equipment and tool usage
 Management of confidentiality
 Actions of disciplinary

Stages of the policy cycle

i. Agenda setting: Helps identify which problem should be addressed
ii. Policy formation: Suggestions on the possible solution are started
iii. Policy adoption: Determination of how legitimate the policy is
iv. Policy implementation: The policies are put into actions
v. Policy evaluation: The adapted policies is evaluated to determine if they contribute to the
achievement of objectives
vi. Policy support or maintenance: Constant checking of the efficiency and effectiveness of
policies while making improvement

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Figure 17: Policy cycle from geopolicy-science-and-the-policy-cycle

Timeframes on implementation
This is the total time an organization takes to implement a policy. The total duration of
implementation for large companies should be nine months to two years. The total time taken
for implementation and development will depend on how complex a policy is. The following
are steps that are vital in development and implementation;
i. Need assessments, cases of business, and specification of the project
ii. Development process
iii. Process of testing
iv. Implementation process

Officers responsible for implementation

In small organizations, the managers perform all the implementation functions and may hire
consultants if help is needed. In larger organizations, the HRM functions increase in
complexity, and an HR department is initialized. These large organizations also hire HR
professions who are assigned HRM duties. Organizations that have in-house HRM
professional staff also have the line managers. These managers are responsible for policy
implementations and directing and controlling employees.

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Monitoring, evaluation, and reporting
Monitoring and evaluation are used in assessing project performance, institution performance,
and programs that have been set by the government, NGOs, and any international
organizations. The main goal of M&E is the improvement of current and future output
management.

Monitoring can be defined as a continuous assessment aimed at providing stakeholders with

detailed information on activity progress. The main purpose of monitoring is determining
whether outputs, deliveries, and planned schedules are reached for action to be taken in the
correction of deficiencies quickly. This a systematic and objective examination concerned with
relevance, impacts, and efficiency of activities in light of the objectives that are specified. The
primary goal is determining if planned deliveries, schedules, and outputs have been reached so
that action can be taken off a quick correction of deficiencies. Reporting is merely documenting
results of monitoring and evaluation and presenting to the audience and at a specific time

Figure 18 monitoring, evaluation from Resources/Publication Documents

Conclusion
This learning outcome covered activities that revolved around aligning operations to financial
regulations. These activities included; familiarizing with financial regulations and financial
operations involved in human resources. It also involved developing tools used for
administration and financial operations reviewing. The learning outcomes also identified the
processes of operation that require to be adjusted and documented. Other activities that were
considered are making recommendations for management and implementing management
decisions on alignment.

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Further reading

Read more Monitoring, evaluation, and reporting from Piatt, J. (2013). 8 Steps to Proper
Operational Process Change. Industry Week. Retrieved 23 September 2020

6.3.3.3 Self- assessment

Written assessment
1. Suppose you are appointed to appoint an administrative staff to conduct an
implementation process, which department would the team be?
A. Finance
B. Human Resource Department
C. Quality Assurance Department
D. Customer Service Department
2. Mikal is a qualified line manager and works with Desired Company; which of the
following best explains her role?
A. Implement policies and directing and controlling employees.
B. Allocating duties to employees
C. The hiring of employees in the organization
D. Providing training, workshops, and seminars to staff
3. Maina was asked to state how the net-working capital of an organization is realized,
which of the following best explains it?
A. It is achieved by subtracting current liabilities from the current assets
B. It is achieved by adding current liabilities to the current assets
C. It is achieved by subtracting the revenues from assets
D. It is achieved by adding the revenues to assets
4. Clearly illustrate the objective that the welfare of a company entails
5. As an HR of Amazon company holdings, what are some of the steps that are necessary
for development and implementation;
6. A company named XYZ calls you and tells you that they state how the process
implemented is ineffective and may contribute to the failure of the organization. As an
HR expert, discuss some ways of reviewing operational processes.

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Practical
The student is required to;
1. Visit a large organization with an in-built HR department
2. Analyse the organizational skills

Resources
1. Furniture (tables and chairs)
2. Appointment letter
3. Company’s operations, procedures, and standards
4. Writing materials

6.3.3.4 Tools/Equipment/Material
 Reference materials
 Computer
 Writing materials
 Furniture (tables and chairs)
 Appointment letter
 Company’s operations, procedures, and standards
 Writing materials

6.3.3.5 Reference

Piatt, J. (2013). 8 Steps to Proper Operational Process Change. Industry Week. Retrieved 23
September 2020

Wainaina, P. (2018). Labour Laws - Statutory Deductions in Kenya - Corporate Staffing

Services. Corporate Staffing Services. Retrieved 23 September 2020,

Pensions Advisory Service, T. (2020). Ill Health Pension - Retirement Due to Sickness.
Pensions Advisory Service. Retrieved 23 September 2020,

Williams, A. (2020). Council Post: Five Recommendations for Human Resource

Management. Forbes. Retrieved 23 September 2020

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6.3.4 Learning Outcome No3: Maintain financial records
6.3.4.1 Learning Activities

Learning Outcome No3: Maintain financial records

Learning Activities Special Instructions

3.1. Familiarization with organization financial records. Observation

3.2. Initiation of financial records policies Projects
3.3. Sorting of financial records and classification Review of portfolios
3.4. Coding of financial records
3.5. Storage of financial records
3.6. Cleansing of financial records and back-up creation
3.7. Appraisal of Financial records and obsolete records
disposal

6.3.4.2 Information Sheet No 6/LO 3: Maintain financial records

Introduction
This learning outcome covers activities that revolve around maintaining financial records.
These activities include; familiarizing with organizational financial records and initiating their
policies as per the SOPs. It also covers how financial records are sorted and classified according
to SOPs, how financial records are coded and stored for SOPs. Finally, the outcome will cover
how financial records are backed-up and cleansed in line with SOPs, and the methods of
cleansing and creating backs up in financial records in line with SOPs.

Definition of key terms

Coding: Coding is defined as the assignment of numbers or letters to data to create a fast-
search database. These codes are tailored, but every accounting business creates its code, and
hence, they are not universal.
Obsolete data: This is outdated data and is no longer economically feasible and competitive
in the market. Data that is obsolete to the company leads to reduced profitability in the
company.

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Content/Procedures/Methods/Illustrations

FINANCIAL RECORDS
 Cash books: This is a financial journal containing cash receipts and disbursements, and
also all deposits and withdrawals made in the bank. There are three types of cash books;
 Single cash book: This is a cash book that is the simplest in business. It revolves
payments mainly done in cash and does not offer any cash discounts; neither does it
receive. It is divided into two sections; the credit and debit sections. The debit side is on
the right side and records all items on credit, while the left side is the credit side, which
records items on debit

Example; Enter the following transactions in a cash book

Mr. M starts business with Ksh. 20,000 on 1st April 2012. Of this he pays Ksh. 15000 into his
bank account. His cash transactions during the week were:
April 1 purchased stationery for cash Ksh. 100
April 2 purchased goods for cash Ksh. 2500
April 2 Cash Sales Ksh.1500
April 3 Received from J Brown Cash on account Ksh. 1000
April 4 Paid to J. R Cash Ksh. 2200
April 5 Paid for Advertisement Ksh. 400
April 6 Cash Sales Ksh. 1800
April 6 Purchased old machinery Ksh. 800
April 6 Purchase from sham on credit Ksh. 6000

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Solution

Table 7: Single cash book

Dr. Cash Book Cr.

Date Receipts V.No. L.F. Amount Date Payments V.No. L.F. Amount
ksh ksh
April To 20000 April By Bank a/c 15000
1, Capital 1,
2012 a/c 2012
April To Sale 1500 April By Stationery 100
2 a./c 1 a/c
April To J. 1000 April By Purchase 2500
3 Brown 1 a/c
a/c
April To 1800 April By J.R. a/c 2200
6 Sales 4
a/c
April By 400
5 Advertisement
a/c
April By Machinery 800
6 a/c
April By Bal. c/d 3300
6
24300 24300
April By Bal. 3300
7 b/d

Two-column cash book: This form of cashbook is similar to a simple cash book but has
extra columns for discount allowed, and discount received. The discount allowed is termed as
a loss and thus debited while the discount received is credited.
For example, enter the following transactions inappropriately.
Enter the following transactions of Mohit in double column cash book:

Jan. 1 2013: Balance of cash in hand = Ksh. 3200

2: Paid to Mohan and Sons (discount allowed Ksh. 35) = Ksh. 765
3: Cash Sales = Ksh. 850
4. Sales of old newspapers = Ksh. 35
4: Paid for office machinery = Ksh. 2000
4: Withdraw from Bank = Ksh. 800
5: Received from Raghav (in full settlement of his debt of Ksh. 1200) = Ksh. 1150
6. Sale of Old Furniture = Ksh. 600

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8: Receive from Prashant (allowed him discount Ksh. 40) = Ksh. 800
8: Paid wages and salaries in cash = Ksh. 1000
9: Received from Akram khan against debt previously written off = Ksh. 450

Solution

Table 8: Two-column cash book

Dr. Cash Book (Double Column) Cr.

Date Receipts L.F. Discount Amount Date Payments L.F. Discount Amount
Allowed ksh Received ksh
2013 To 3200 2013 By 35 765
Jan. Balance Jan. Mohan
1 b/d 2 and sons
a/c
Jan. To Sales 850 Jan. By office 2000
3 a/c 4 machinery
a/c
Jan. To old 35 Jan. By wages 1000
4 newspaper 8 and
a/c salaries
a/c
Jan. To Bank 800 Jan. By 4120
4 a/c 9 Balance
c/d
Jan.5 To 50 1150
Raghav
a/c
Jan.6 To 600
Furniture
a/c
Jan.8 To 40 800
Prashant
a/c
Jan.9 To Bad 450
debts
recovered
a/c

90 7885 35 7885
Jan. To 4120
10 Balance
b/d

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Three-column cash book: This is a form of cash book similar to double-column but has an
extra column for recording transactions done in the bank. The cash column represents the
cash account, while the bank column represents the bank account. Instances that affect both
sides of the cash books are entered on both sides; such a transaction is a contra entry. The
bank column is on the debit side while the cash column is on the credit side of a cash book.

Example; Write out the following transactions in the Triple column cash book of Sitaram: 2013

Jan. 1 Sitaram commences his business with cash = Ksh. 30000

Jan 2 He pays into bank current account = Ksh. 20000
Jan. 3 He receive cheque from kulwant rai on account = Ksh. 1000
Jan. 7 He pays kulwant rai's cheque into bank = Ksh. 1000
Jan. 10 He pays Radha Sharan by Cheque = Ksh. 1980
And receive discount = Ksh. 20
Jan. 11 He receive cheque from Wasim = Ksh. 970
And allow him discount = Ksh. 30
Jan. 15 He makes sales for cash = Ksh. 2000
Jan. 17 Cash deposited into bank = Ksh. 3000
Jan. 19 He purchased a motor car by cheque = Ksh. 6500
Jan. 20 He purchased goods by cheque = Ksh. 1500
Jan. 22 He pays jajoo traders in cash = KSH. 2000
And receives discount = Ksh. 100
Jan. 29 He withdraws from bank for office use = Ksh. 500
Jan. 30 He purchases furniture by cheque = Ksh. 1200
Jan. 30 Cheque received from sham endorsed to Ram = Ksh. 5000

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Solution
Table 9: Three-column cash book:
Dr. Cash Book (Triple Column) Cr.
Date Receipts Discount Cash Bank Date Payments Discount Cash Bank
allowed Ksh received Ksh
2013 To 30000 2013 By Bank 20000
Jan. 1 Capital Jan. 2 (C)
Jan. 2 To Cash 20000 Jan. 7 By Bank 1000
(C) (C)
Jan. 3 To 1000 Jan. 10 By 20 1980
Kulwant Radha
Rai Sharan
Jan. 7 To Cash 1000 Jan. 17 By Bank 3000
(C) (C)
Jan.11 To 30 970 Jan. 19 By 6500
Wasim Motor
Car
Jan.15 To Sale 2000 Jan. 20 By 1500
Purchase
Jan.17 To Cash 3000 Jan. 22 By Jajoo 100 2000
(C) traders
Jan.29 To 500 Jan. 29 By Cash 500
Bank (C)
(C)
Jan. 30 By 1200
Furniture
a/c
Jan. 30 By 7500 13290
Balance
C/d
30 33500 24970 120 33500 24970
May 1 To 7500 13290
Balance
b/d

Rules of a cash book

 All cash receipts are entered in the cash column of the receipt side, cash payments on
the payment side. Discount allowed on the debit side and discount received on the Cash
Book [in the discount columns].
 Cheques received from customers and deposited immediately are entered in the bank
column of the Cash Book [debit side]. If sent to the bank at a later date, it becomes a
deposit of money into the bank, thus, “contra’ entry.

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  Cheques received by the business and endorsed to creditors are taken into cash columns
as cash receipts and cash payments.

Ledgers: This is simply the simple book of account that forms permanent recording for
every transaction in a business. There are three types of ledgers; the sales ledger, the
purchases ledger, and the general ledger.

Purchases ledger: This type of ledger is also known as creditors’ ledger; it records all
transactions in terms of goods purchased by a business on credit. Money owed by the
business to their sellers is known as sundry creditors, accounts payable, or trade creditors
Sales ledger: This ledger is also known as debtors’ ledger; it records all transactions in terms
of goods purchased by customers on credit. Money owed by the business to their sellers is
known as sundry creditors, accounts payable, or trade creditors

General ledger: This ledger is a combination of all accounting ledgers and contains all
account types found in an organization, e.g., assets, liabilities, expenses, and revenues.
Example; Sardar Hammad is sole owner of business. He has been started business since 1990.
Following are transaction for the month of August 2016, prepare Journal Entry, General
Ledgers

August 2016
Aug 3. Reinvestment in the shape of Cash Rs.80, 000 and Furniture Rs. 20,000.
Aug 5. Cash Sales Ksh.10, 000 and on account Sales Rs.12, 000.
Aug 6. Bought goods from Ahmed Co. Rs. 60,000 paid Rs.15, 000 cash and remaining Note
payable pay within 30 days.
Aug 9. Purchase Office Equipment from Waseem Shah worth Rupees Rs.99, 000, a cash down
payment of Rs.19, 000 and balance will be paid by four instalments, first due on 30 August.
Aug 21. Goods return by credit customer of worth Rs...12,000.
Aug 30. Paid first instalment of Rs.20, 000.

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Solution
General Journal

Figure 19: General journal from accountsknoledge.com

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General Ledgers

Figure 20: cash accounts from accountsknowledge.com

Figure 21: Furniture account from accounts knowledge. Com

Figure 22: Owners equity accounts from accountsknowledge.com

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Figure 23: Accounts receivable from accountsknowledge.com

Figure 24: sales accounts from accounts knwledge.com

Figure 25 purchase accounts from accountsknowledgeacconts.com

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Figure 26: note payable from acconts.com

Figure 27Office equipment account from acc.kno.com

Figure 28; accounts payable from accounts knowledge. Com

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Figure 29 sales return accounts from accounts knowledge. Com

Receipt books: The cash receipt journal is used for managing a business cash inflow. There
are three categories in the cash receipt journal; Receipt from cash sales, Receipt from
receivables, and Receipt of cash from other sources. A standard cash receipt has nine
columns which record; date, account credited, post reference, cash debited, sales discount
debited, account receivable credited, sales credited, other accounts credited, and the COGS
debited respectively.

Invoices: They are documents used in maintaining a transaction record between buyers and
sellers. There are several types of involves in business such as;

 Standard invoice issued by the business to a client

 Credit invoice also known as a credit memo, issued by the buyer to a client for
correcting an error previously made or providing a refund or discount.
 Debit invoice also known as a debit memo, issued by a business to a client for the
increasing amount owed by the customer to the business
 Mixed invoice a combination of both the debit and credit invoices
 Pro forma invoice issued by a business to a client estimating the cost of services before
providing them. Other types of involves include; interim, final, expense report,
timesheet report, and commercial invoices.
 Human resource Financial records in an organization
This accounting of expenditures that relate to a human resource as assets. There are several
objectives under human resource which are;
 The facilitation of HRA is the management of people, which is an organizational
resource
 Provision of information to pertaining the cost and value of the human resource
 To illustrate whether the human resource is optimized effectively or not
 To aid in decision making management on in acquisition, allocation, development, and
maintenance of human resource to the human resource as an organizational objective
 Provision of accounting details of human resources to outsiders, e.g., finances.
 Sorting and classification of financial records

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Financial records can be classified into four primary financial statements: balance sheets,
income statement, statement of shareholder’s equity, and statement of cash flows. Financial
records can be sorted several levels that classify data based; whether the financial records
have complications, whether they require auditing, whether they should be reviewed, and if
the need is changing.

Coding, storage, cleansing, and appraisal of financial records

Financial records need to be coded; by this, it should contain fewer letters and numbers for
easier retrieval and memory. Financial data should also be regularly cleansing, this implies
that special software should be used to clean and the obsolete records separated from relevant
data. Financial records need to be frequently evaluated to determine if they contain
information that is evidential and informational.
 Why obsolete data should be disposed; Obsolete data should be
 Procedures of disposal; Data disposal is previously stored in tapes, hard disks, or in any
other electronic media. There are several methods through which this data can be
disposed of which include;
 Deleting of data by use of data destruction software which overwrites the data until the
process is irretrievable.
 Degaussing, which is a method used in magnetic storage tapes, it destroys data by
changing the magnetic field in the drives.
 Shredding is a method of data destruction where a mechanical device, a shredder, is
used to physically mangle hard drives, tapes, and any optical media.

Conclusion
This learning outcome covered activities that revolved around maintaining financial records.
These activities included; familiarizing with organizational financial records and initiating their
policies as per the SOPs. It also covered how financial records are sorted and classified in line
with SOPs, how financial records are coded and stored for SOPs. Finally, the outcome covered
how financial records are backed-up and cleansed in line with SOPs, and the methods of
cleansing and creating backs up in financial records in line with SOPs.

Further reading

For further reading and insights on the budget for the Human Resource function activities.

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6.3.4.3 Self- assessment

Written assessment
1.Infotech Limited sent an invoice to its client to alert them of the arrival of new products and
gave a rough estimate on pricing; which of the following invoice did the client receive
A. General ledger
B. Mixed invoice
C. Pro forma invoice
D. Purchase invoice
2. A lecture appointed a student to explain what defined an obsolete data, which of the
following definitions did the student give
A. This is outdated data and is no longer economically feasible and competitive in the
market
B. This the assignment of numbers or letters to data to create a fast-search database.
C. This is a financial data containing cash receipts and disbursements, and also all
deposits and withdrawals made in the bank.
D. None of the above
3. Francis is a farmer who records daily cash payments from his animal feeds; he does not
receive, and discounts neither do he give any to his customers. Which form of a transaction
does he make?
A. General ledger
B. Double-column cash book
C. Three-column cash book
D. Single cash book
4. You are the human resource manager of Prime manufacturers; what are some of the
objectives of human resources to accounting?
5. You are a finance manager with advanced skills and knowledge in accounting, define what
an invoice is, and give types of invoices?
6. You are obliged by the finance officer to give a review of financial records that are vital in
accounting. Explain ledgers, cash books, and receipts in a detailed form.

Practical
A student is tasked to;
1. Visit a finance officer
2. Demonstrate communication skills

Resources
1. Furniture (tables and chairs)
2. Writing materials
3. Computers
4. Excel worksheets

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6.3.4.4 Tools/Equipment/Material
 Reference materials
 Computer
 Writing materials
 Excel worksheets

6.3.4.5 5 Reference

Accounts, B. (2016). What are Different Types of Ledgers? - Accounting Capital. Retrieved
September 23 2020

Books, f. (2019). What Are Different Types of Invoices? | Small Business Invoicing Guide.
FreshBooks. Retrieved September 23 2020

Hargrave, M. (2019). Gauging Obsolescence Risk. Investopedia. Retrieved September 23

2020,

Management, A. (2012). General ledger - explanation, process, format, example |

Accounting for Management. Accounting for Management. Retrieved September 23
2020,

Richards-Gustafson, F. (2017). What Is Coding in Accounting Terms? Bizfluent. Retrieved

September 23 2020

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 CHAPTER 7: UNDERTAKE BUSINESS COMMUNICATION

7.1 Introduction
This unit specifies the competencies required to undertake business communication. It involves
handling correspondences, maintaining human resource records, aligning response time to
service charter, safeguarding confidentiality of information, implementing organization
policies and managing communication on social media platforms.

7.2 Performance Standard

It involves handling correspondences, maintaining human resource records, aligning response
time to service charter, safeguarding confidentiality of information, implementing organization
policies and managing communication on social media platforms in line with the SOPs, as per
the organization procedures, in line with service charter, within the organization and according
to social media policies and procedures.

7.3 Learning Outcomes

7.3.1 List of Learning Outcomes
a) Handle correspondances at the workplace
b) Maintain human resource records
c) Align response time to service charter
d) Safeguard confidentiality of information
e) Manage communication on social media platforms
f) Manage meetings at the work place
g) Write work place reporting

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7.3.2 Learning Outcome No 1: Handle correspondences at the workplace
7.3.2.1 Learning Activities

Learning Outcome No 1: Handle correspondences at the workplace

Learning Activities Special Instructions

1.1 Familiarization with the Human Resource Manual. Observation

1.2 Obtainment of Incoming and Outgoing Mails. Projects
1.3 Sorting of Correspondence and Action Taken Review of portfolios

7.3.2.2 Information Sheet NO 7 /LO 1: Handle correspondences at the workplace

Introduction
This learning outcome covers familiarization with the human resource manual, obtainment of
incoming and outgoing mails and sorting of correspondence and action taken.

Definition of key terms

Human Resource Manual: Is a tool or a book used by human resource practitioner to give
information /instructions in an institution.

Correspondence: This is a letter sent or received can be a mail or an email where by a mail is
a letter sent via the post while an email is a letter sent via internet.
Communication: Is the exchange of information from the sender to the receiver with the
information being understood.

Content/Procedures/Methods/Illustrations
Human resource manual
Introduction Human resource manual
A manual is a book that gives out instructions or information about something. A human
resource manual is a document detailing an organization's policies regarding employee
Management and relationship between manager and employee. It aims to describe workplace
practices, hiring and termination procedures and other pertinent information. In making these
guides, management must ensure thoroughness and accuracy since they are often referenced in
legal proceedings.

Procedure for writing a human resource manual

i. Review and make required revisions to the current company policies.
ii. Create an outline of what to include in the employee’s handbook.
iii. Create summarized versions of each policy and procedure.
iv. Add each summary statement in the appropriate section according to the outline.

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 v. Review the entire handbook.
vi. Provide finalized version to legal counsel for review.
vii. Select a means of publication.
viii. Distribute handbooks.
ix. Update as necessary.

Record keeping
This is the activity of organizing and storing correspondence that relating to an organization's
activities. These records are kept by a registrar. They contain information that is needed for the
day to day work of the organization.

Methods of managing records include:

 Implementing a mobile platform to ensure effective communication the
communication better.
 Keeping track of important contact for each project.
 Avoid time wastage when developing correspondences.

Procedure for record keeping.

i. Set up a record retention schedule.
ii. Set policies and procedures.
iii. Accessibility, indexing and storage.
iv. Auditing.
v. Disposal if obsolete records.

Types of correspondences
Correspondences are forms of written communication usually made between organizations,
within the organization or between the clients and organization. Written communication in
terms of correspondences serves as a formal way of exchanging information while maintaining
professional relationships between organizations, employees and clients. It can also serve as
future reference for information being communicated.

Correspondences can be grouped into the following:

a) Internal correspondences: Refer to letters communicated between individuals,
departments, sections and branches of same organization. For example, promotion
letters, memorandum, letter of approval or dismissal.
b) External correspondences: Refers to letters made with outside of the organization who
are individuals, customers, suppliers, bank, financial institutions, money lenders,
government departments and charitable trusts.
c) Routine correspondences: Refer to letters sent and received on routine matters. For
example, inquiry letters, acknowledgement letters, invitation letters and appointment
letters.
d) Sales correspondences: Letters relating to sales. For example, delivery letters, discount
letters, debit and credit note letters, confirmation of order letters.

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 e) Personalized correspondences: Letters involving personal and emotional factors. For
example, favour letters, appreciation letters, and commendation and recommendation
letters.
f) Circular correspondences: Letters regarding common matters communicated to a large
number of persons or firms. For example, opening of new branch, introduction of new
product line and letters regarding meeting with shareholders.

Correspondence handling procedures

Letters are received in the registry from different sources.

Procedure for opening mail

i. Slit envelope across the top
ii. Save the envelope for re-use
iii. Care must be taken to ensure the content of letter is not damaged
iv. Keep the letters in a box file or other suitable container
v. Register each letter in the income correspondence register
vi. File the letters in their relevant files.

Effective communication
Effective communication is a process of exchanging ideas, thoughts, knowledge and
information such that the purpose or intention is fulfilling in the best possible manner; its
presentation of views by the sender in a way best understood by receiver.

Characteristics of effective communication

 Clarity: Simple and easy to understand.
 Correctness: Free from errors and grammatical mistakes
 Completeness: Communicate full information
 Precise: Straightforward
 Reliability: Surety of message

Significance of effective business communication

 Employee Management
 Team Building
 Organizations Growth
 Creativity and Innovation

Barriers to effective communication

 The use of jargons
 Physical barriers such as impaired vision, speech problems
 Filtering - people read and understand what they want than what is said
 Language and cultural difference
 Ambiguity

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Incoming and outgoing mails
Obtainment of Incoming and outgoing mails
Incoming mail is received and recorded by the office in the entry or register book, the outgoing
mail is drafted by the office in the dispatch book and is dispatched by the office through the
post office.

Procedure of handling incoming and outgoing mails

i. Post box: Is used to keep letters.
ii. Post bag: A bag given on hire by a big post office to a hirer in order to carry the mails
from or to the post office.
iii. Courier service system: Channel for delivering incoming and outgoing mails.

Actions taken in sorting correspondence

Indexing: It’s the process of determining name, subject or other captions under which
documents are filed. It’s used to locate documents that have been filed.

Methods of indexing include ordinary page index, visible card index and rotary index
Filing
It’s the process of arranging the letters and records in a proper sequence. It involves placing of
letters in acceptable containers according to some predetermined arrangements so that any of
them when recorded may be located easily and conveniently. Filing systems must be simple,
accessible, correct and flexible

Methods of filing include:

 Old methods: arch lever file, box file, pillar and post file
 Modern methods: horizontal file, vertical file

Communication process
i. Sender.
ii. Encoding.
iii. Channel.
iv. Decoding.
v. Receiver

Conclusion
This learning outcome covered familiarization with the human resource manual, obtainment of
incoming and outgoing mails and sorting of correspondence and action taken.

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Further Reading

Read more on communication from Article by Arvind Rongala of July 13,2015 on 7 rules of
effective communication

7.3.2.3 Self-Assessment

Written assessment
1. Students of cooperative University visited Malisafi Company and they were shown some of
external business written communication which one is not part of them
A. Complaint letter.
B. Curriculum vitae.
C. Memo
D. Enquiry letter.
2. Jane a human resource manager at kingo factory has planned to have a meeting with the
employees, which of the following is not a problem when she is calling for this meeting
A. Personal agenda
B. Team spirit
C. Interpersonal conflicts
D. Cultural difference
3. Which of the following is not a component in communication model
A. Sender
B. Encoding
C. Messenger
D. Receiver
4. Kisumu technical students were asked by their human resource lecturer list down four
common barriers that impede communication, which one is not among them.

A. Barriers with people

B. Barriers with words
C. Barriers made by cultural difference
D. Barriers made by distance.
5. Explain how a business person would communicate effectively to ensure that he fully
explores and understands the needs of this customers.
6. Mike went to for look human resource job in a company that deals with people welfare
during his interview he was told to list four barriers for effective communication.

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7. Conveying a message effectively is an art as well as a skill developed after continuous
practice and experience. As a human resources manager in Growth dealers. discuss the
predetermined set of skills required for an influential communication process

Practical Question
The candidate is required to:
1. Illustrate the different filing methods.
2. Demonstrate use of photocopier.
Resources:
1. Letter in soft copy (computer)
2. Working photocopier
3. Container
4. Labelling stickers

7.3.2.4 Tools, Equipment, Supplies and Materials

 Articles
 Records
 Documents
 Observation
 Interviews
 Questionnaires
 Camera and video recording equipment(optional)

7.3.2.5 References

Prachi. Effective communication. November 7, 2018.

Tatiana Efficient Sorting, Distributing and Processing of Incoming Mail. April 29, 2008.

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7.3.3 Learning Outcome No2: Maintain human resource records
7.3.3.1 Learning Activities

Learning Outcome No2: Maintain human resource records

Learning Activities Special Instructions

2.1 Familiarization with organization record management Observation

policies Projects
2.2 Initiation of record management policies Review of portfolios
2.3 Classification and sorting of records
2.4 Indexing of records
2.5 Storage of records
2.6 Creation of records back – up
2.7 Appraisal of records and disposition of obsolete records

7.3.3.2 Information Sheet No7/ LO 2: Maintain human resource records

Introduction
This learning outcome covers familiarization with organization record management policies,
initiation of record management policies, classification and sorting of records, indexing of
records, storage of records, creation of records back – up and appraisal of records and
disposition of obsolete records.

Definition of key terms

Record management: A record is any documented information produced or acquired in the
course of carrying out organizational activities that contains content which show evidence of
the activities. Record management also referred to as record and information management is a
function of management that entails creation, maintenance, use and disposal of documents.

Back – up: Refers to a file or record stored separately from the original that can be used to
record original if it is destroyed/damaged/lost.

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Content/Procedures/Methods/Illustrations

ORGANIZATION RECORD MANAGEMENT

Types of human resource records

Human resource records can be classified into:

i. Personnel files
 Basic information
 Recruitment documents
 Termination and post-employment data
 Remuneration
 Work performance and development
 Employment contracts
ii. Confidential files
 Health records
 Disciplinary records
 Employee background information
 Leave records

Importance of record keeping

 Helps avoid litigation: Organizations tend to receive lawsuits from employees after
termination, but with proper documentation, the management is able to prove the
reasons for employee termination.
 Legal reasons: It is a legal requirement that organizations should keep their records and
employee files. Maintaining employee salary information, taxation records and other
important documents is necessary for when regulation takes place.
 Efficiency and competency: Keeping records helps analyse the level the level of
competency within an organization, training needs are also identified hence promoting
efficiency.
 Reviewing reasons: Accurate employee records are important as they offer a clear and
non-biased employee record and their employment history, also helps managers to
understand their new employees.
 Networking: Even after leaving the company, it is important for the management to
maintain employee records since they might cross paths again in the near future.

Record management policies

Record management policies create a framework where management records and programs are
put in place and used accordingly. The standard policies and procedures include;
 The company can have different policies for different types of records
 Include all the records regardless of the type in the management.
 Evenness is important for the success of record management in organizations.
 The program must be in support of policies and procedures legally

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  Proper planning and delivering of policies and procedures will go well with the business
continuity objective.
 Policy and procedures create the quality for an adaptable management system
 Record management activities should be carried out frequently and communicated
openly.

Types of recording policies

 Institutional policy
 Corporate financial records policy
 Private/personal recording policy
 Record management policy
 Classroom recording policy

Indexing of records
Indexing of records refers to the process of relating documents with different names that can
be used when searching for them, the process is done so as to help indicate what the contents
are and make them easier to be found. Indexing has the following importance;
 Protects documents that are too large
 Helps in file preserving
 Saves time
 Files are stored in the most appropriate locations

Classification of records
The following are reasons for record classification;
 Classification helps to provide context for easier record indexing, records are separated
according to value.
 To ease the searching process, when documents are classified into different categories,
it becomes easier to search for a specific one in the future.
 Helps in the disposal of records, through classification records to be retained are
separated from the ones not needed so that they get to be disposed off.
 Classification saves storage expenses and space as it enables disposal.

Storage of human resource records

Human resource records and information can be stored in either soft copy or hard copy. Files
containing employee information are particularly confidential hence should be secured with
minimum access.

Methods of storage
 Use of physical files for hard copy documents
 Manual electronic employee records
 Cloud-based human resource software
 On-premise human resource system
 Cloud storage electronic employee records

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Records back – up
Organizations that lack efficient backup systems tend to lose a lot of valuable information.
Types of back-ups
 Mirror backup
 Incremental backup
 Full backup
 Differential backup

Disposition of records
After determining the best record retention policy, documents that are no longer useful or
needed in the organization should be disposed off

Ways of record disposal

Records are disposed off in either of the following ways;
 Shredding
 Keep them at the national archives
 Donating them
 Pulping
 Deleting from the system
 Selling them as waste materials
 Burning

Importance of record disposal

 Avoid information breach
 Avoid penalties
 Creates storage of more important records
 Gain a more orderly work place
 Reduce storage cost
 Creates a cleaner storage place

Conclusion
This learning outcome covered familiarization with organization record management policies,
Initiation of record management policies, Classification and sorting of records, Indexing of
records, Storage of records, Creation of records back – up and Appraisal of records and
disposition of obsolete records.

Further Reading

1. Read more on backup from Rand LeMarinel (2017). Types of Data Backup.

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7.3.3.3 Self-Assessment

Written assessment
1. Backup is a very important method of retrieving lost files. The following contain list of
types of backups, except;
A. Incremental backup
B. Full backup
C. Differential backup
D. Secondary backup
2. In human resource management there are a number of methods of document storage, state
the party below that is not a method of storing files.
A. Use of physical files for hard copy documents
B. Selling as waste materials
C. Manual electronic employee records
D. Cloud-based human resource software
3. Indexing of records refers to the process of relating documents with different names that
can be used when searching for them, the process is done so as to help indicate what the
contents are and make them easier to be found. Indexing has the following importance.
The following include the importance of document indexing, except;
A. Performance development
B. Protects documents that are too large
C. Helps in file preserving
D. Saves time
4. Record keeping is important as it helps to keep files for easy reach in case of any
clarification. Name one importance of record keeping
A. Positive work environment
B. Efficiency and competency
C. Job satisfaction
D. Reduced costs
5. Organization record management is essential when it comes to record storage in human
resource management. Name the two types of human resource records
6. As a human resource manager, you come across different policies and procedures in the
course of work; state some of the policy and procedures of record management
7. Personal employee files are considered confidential and only a few people in the
organization are allowed access to them, state 3 of these employee records
8. You being a manager of fertilizer manufacturers, how can you solve the issue of record
disposition?
9. As Kenya seed company human resource manager, discuss the importance of maintaining
employee records in the organization

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Practical
You are the human resource manager at the Kenya bureau of statistics, the workplace is full of
materials used in the 2019 census process. You are required to:

1. Organize a classification process and conduct a record disposal

Resources
1. Organization policies
2. Paper shredder
3. Writing materials
4. Laptop
5. Filing cabinet

7.3.3.4 Tools, Equipment, Supplies and Materials

 Documents
 Books
 Internet
 Discussion
 Organization policies
 Paper shredder
 Writing materials
 Laptop

7.3.3.5 References

International Journal of Business, Economics, Finance and Management Sciences 1083-

4346

Kuratco, D. (2014). Entrepreneurship: Theory, Process and Practice (9th Edition). South-
Western Cengage learning. ISBN 978-1-285-05175-8 Oxford Development Studies,
Routledge Publications 1360-0818

Vandana, D. and Robert B. (2008), The Companion to Development Studies (2nd Ed.). Hodder
Arnold. 0340889144

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7.3.4 Learning Outcome No 3: Align response time to service charter
7.3.4.1 Learning Activities

Learning Outcome No3: Align response time to service charter

Learning Activities Special Instructions

3.1 Familiarization with the organization service charter Observation

3.2 Responding to correspondences Projects
3.3 Retrieving of records Review of portfolios

7.3.4.2 Information Sheet No 7 /LO3: Align response time to service charter

Introduction
This learning outcome covers familiarization with the organization service charter, responding
to correspondences and retrieving of records.

Definition of key terms

Organization service charter: An organization service charter is a public document that
shows what an organization is offering its customers and how they can be contacted.

Record retrieval: Refers to the process of locating a particular document for it to be used in a
given way.

Content/Procedures/Methods/Illustrations

ORGANIZATION SERVICE CHARTER

Importance of service charter

To customers:
 A charter provides a means for customers to give feedback on the organization’s
services.
 Customers are able to air their complaints in case they were not satisfied with the
services offered by the organization.
To organization:
 A charter helps to boost an organizations image, this is because having a charter shows
that the organization is willing to listen to the customers and make improvements where
necessary.
 Through feedback from the customers, the organization is able to improve on their
services

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  A service charter helps protect the rights of employees when dealing with strenuous
customers.
 Through the service charter, the management is able to determine how the company is
performing.

To regulators:
 A service charter provides a framework that can be used to analyse the way customers
are being treated hence helping these regulatory bodies in protecting customers.

Role of service charters

 It is used to inform customers on what to expect from an organization, the kind of
service that will be offered and how it will be offered.
 Stating the rights of customers
 Service charters help in the orientation of new customers
 Used as a channel of communication between the organization and its customers.
 Attract new customers
 Establish trust between organization and customers which will lead to customer loyalty.
 Used to keep track of the services offered

How to write a service charter

Steps:
i. Come up with general information on what the business is about, what products and
services you are selling.
ii. Write down the business objectives in regards to your customers and their satisfaction.
iii. Create customer’s rights in regards to your organization.
iv. In the charter include what your organization is willing to do to make sure you meet
customer satisfaction
v. Advice customers on the action to take in case they receive poor service, indicate contact
information.
vi. Distribute and display the charter in form of posters or social media post.

Responding to correspondences
Response should always be able to promote sales and customer satisfaction

Guidelines for the responding process

i. Customer service should be able to fulfil the expectations and needs of the customers
ii. Be able to acknowledge that the success of the business depends on the quality level of
the customer care being given.
iii. Ensure use of excellent personal and phone etiquette.
iv. Deal with customer complaints maturely and professionally
v. Employees should have excellent knowledge of the products and services being offered
to avoid misleading customers.

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Retrieving records
Records can easily be retrieved after being sent to record management to be stored, this is done
at the retention stage where a request to retain is made via the department that possesses the
particular record.

Procedure for retrieving records

i. Log in to the records centre database
ii. Identify the specific record that you want to retrieve
iii. Request for the retention of the record
iv. Record will be sent through email unless it is in hard copy.

Table 10: Service charter table of contents

SERVICE CHARTER
Table of Content
Forward
Commitment to Service
Service Charter Objectives
Mandate
Vision
Mission
Core Values
Our Customers
Range of Service
Our Commitment
Service Evaluation
Customer Rights
Charter Review
Complaints
Feedback

Conclusion
This learning outcome covered familiarization with the organization service charter,
responding to correspondences and retrieving of records.

Further Reading

Read more on Service charter from Oxford Development Studies, Routledge Publications
1360-0818

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7.3.4.3 Self-Assessment

Written assessment
1. Peter is thinking of opening a boutique, after acquiring a permit and drafting a business
plan he doesn’t think there is any other document that is important. Among the following
statements chose the one that states the purpose of a service charter.
A. It is used to inform customers on what to expect from an organization, the kind of
service that will be offered and how it will be offered.
B. Ensure use of excellent personal and phone etiquette
C. Request for the retention of the record
D. Deal with customer complaints maturely
2. While retrieving records, the management demands that a specific procedure is followed,
select a statement below that is not part of the procedure.
A. Log in to the records centre database
B. Identify the specific record that you want to retrieve
C. Delete the record
D. Request for the retention of the record
3. The following contain contents of a service charter table of contents; choose the one that is
not.
A. Mandate
B. Price
C. Vision
D. Mission
4. The statements below describe the steps of writing a service charter, select one statement
that is not part of the process
A. Come up with general information on what the business is about, what products and
services you are selling.
B. Write down the business objectives in regards to your customers and their
satisfaction.
C. Create customer’s rights in regards to your organization.
D. Request the department
5. You being a manager at an insurance company, give the guidelines for responding to
customers
6. State two importance of service charter to an organization
7. As Naivas supermarket human resource manager, discuss the importance of service charter
to all parties involved.

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Practical Question
The student is required to:
1. Prepare the receptionist desk
2. Demonstrate customer care skills

Resources
1. Desktop
2. Furniture (tables and chairs)
3. Brochures
4. Writing materials and pens

7.3.4.4 Tools, Equipment, Supplies and Materials

 Records
 Documents
 Case studies
 Group discussions
 Observation
 Survey
 Interviews
 Questionnaires

7.3.4.5 References

Lalla Scotter (2020). What is the Importance of a Customer Service Charter? Article.

Otteng, Osir, Jagero, Juliet, (2014). The Function of Service Charter as a Communication Tool
for Consumers of Immigration Services in Kenya.
Melinda Gaines, (2017). How to Write a Customer Service Charter.

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7.3.5 Learning Outcome, No 4: Safeguard confidentiality of information
7.3.5.1 Learning Activities

Learning Outcome, No 4: Safeguard confidentiality of information

Learning Activities Special Instructions

4.1 Familiarization with the organization policy Observation

4.2 Securing of records and correspondences Projects
4.3 Handling of records and correspondences in circulation Review of portfolios
4.4 Sensitization of employees on safeguarding confidentiality
of information
4.5 Tracing of records and correspondences

7.3.5.2 Information Sheet No 7/LO 4: Safeguard confidentiality of information

Introduction
This learning outcome covers safeguarding confidentiality of information. It begins by looking
at familiarization with organizational policies then proceeds to discuss securing of records and
correspondences, handling of records and correspondences in circulation, sensitization of
employee on safeguarding confidentiality of information and finally looks into tracing of
records and correspondences.

Definition of terms
Organization policy: An organization policy refers to the set of specific guidelines which
indicate an organizational plan for handling issues. A policy communicates the relationship
that exist between the vison of the organizations and the day-day activities that help in realizing
the organizational vision.

Confidentiality: Confidentiality is a concept that describes the act of keeping information

private or from accessibility from unauthorized personnel.

Information: Information refers to facts provided about something or someone.

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Content/Procedures/Methods/Illustrations

ORGANIZATION POLICY
Organization policy on confidentiality
Associations are endowed with data that is confidential in nature. To be in consistence with
security enactment, it is essential that associations keep up secrecy and cutoff divulgence of
such data. The option to keep up all classified data establishes an exclusive right which the
organization and society has a responsibility to protect. It is the policy of an organization to
protect the disclosure of confidential information which can be unfavourable to the
organizational interests or the clients of the organization. Confidentiality policy is intended to
increase the level of confidence in the integrity of employees, the general public and any other
interested parties to the organization.

Confidentiality policy and procedure

People that have been employed in an organization to provide various services are entrusted
with confidential information that relates to the organizational activities. The employees are
responsible for ensuring the confidentiality and privacy of confidential information and for
exercising discretion in handling such information.

The policy on confidentiality requires that employees will not knowingly or wilfully reveal or
distribute to any other party any information that belongs to the organization which the
employee has obtained through a connection or as a result of their engagement with the
company through employment. All documents and records that have confidential information
established or given to individuals have to be protected from any unauthorized access
collection, disclosure, use retention or disposal of information.
All employees or volunteers in an organization must remain confidential in all their endeavours
unless they have a written document that authorizes the release of information about the
company. However, some organizations require particular information while providing various
services to the employees. Examples of institutions that may require information include
insurance companies and health facilities.

Disclosing confidential information

There are various circumstances that require information disclosure. Various human resource
departments in different organizations have provided policies that guide the disclosure of
confidential information. In the event that disclosure is necessary, all employees, volunteers,
service providers, clients, supplier and other stakeholders have to be made aware that there is
no information apart from that contained in the business card will be disclosed to anyone
outside the organization unless the responsible authorities authorize the release of the
information with appropriate guidelines.

All people must use discretion when disclosing confidential information. Employees can only
disclose information when they are fulfilling their duties but only with prior authority. All
people, outside an organization that are not supposed to receive such information are strictly
prohibited from getting any access to organizational information.

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Importance of confidentiality
Confidentiality is significant for a few reasons. One of the most significant components of
Confidentiality is that it assists with building and create trust. It possibly takes into
consideration the free progression of data between the customer and labourer and recognizes
that a customer's very own life and all the issues and issues that they have a place with them.

The major reason for obtaining consent from an individual before disclosing confidential
information is to ensure that the person has confidentiality. Informed consent is crucial in
maintaining the privacy and confidentiality of a client. It is also important to keep your client’s
business and only discuss matters or issues that only relate to your business. Workplace
discussions should not be carried out with family members or mixed with family discussions.

Regard for customer privacy and staff individual data ought to be a high need for all network
administrations to conform to enactment that oversees divulgence of data. In such manner all
associations require to have approaches and techniques that give rules to labourers. Proper
specialist conduct can likewise be approved in a set of principles.

To guarantee confidentiality, labourers should just access private data for work that is limited
to their expected set of responsibilities and the approaches and techniques of the association.
They should just reveal data to different groups where a customer (or associate corresponding
to their own data) has agreed to the arrival of the data or where divulgence is required or
commanded by enactment because of signs of danger of mischief. Further labourers need to
guarantee that any data that is gathered is safely put away and discarded.

Records and correspondences

Physical securing of records
All physical records need to be secured and protected from any form of unauthorized access to
enhance high levels of confidentiality. The following are strategies that organizations can use
to protect physical records from access by any other unauthorized individuals:

a) Lock and key: To attain security and confidentiality of information, physical records
should not be stored in an unlocked cabinet. The records need to be kept under lock and
key. The keys should be held by a specific person who has the sole responsibility of
opening the locks retrieving the documents and closing it. Incase information has
leaked, the person with the keys can be held responsible for loss of breach of
confidentiality.
b) Fireproofing: Some places have high risks for fire. Physical records need to be kept in
fireproof locations so that they cannot be dismantled in case of fire and prevent loss of
information. Organizations can purchase fireproof cabinets or create fireproof stores
for storing documents that have significant and very confidential information.
c) Restricted access: Organizations can establish confidentiality of physical records by
creating restrictions to areas where these records are stored. When there are restrictions,
it becomes easy to protect information from getting into the hands of unauthorized
persons. However, when retrieving physical records from the restricted areas, the

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 relevant authority needs to be notified and informed early in advance. With such
restrictions, it becomes easy to account and enhance confidentiality in any organization.
d) Reinforced storage: Reinforced storage refers to a storage system that has additional
security checks and additional security protocols for accessing organizational
confidential information. Examples if reinforced storage is a state where physical
records are stored in cabinets and the cabinets are also stored in other cabinets. The two
sets of cabinets have different keys that can only be opened with two different people.
Such protocols ensure that organizations have kept their physical records in a secure
manner.

Handling of records and correspondences

Correspondence refers to the communication that takes place in organizations between the
employees and leaders of an organization. The correspondence can take the form of written
records or emails. Correspondence has various roles in an organization as it helps in promoting
an organizational image. It also helps an organization focus on its objectives. Organizations
engage in correspondence to provide notices to office persons or any other individual. It also
helps to serve orders to an employee or a whole department informing the department of
specific issues.

Various organizations have different ways in which they handle records and correspondences.
The correspondences cannot just be issued by any other person. For example, a departmental
head writing a warning letter cannot just issue the same to his or her daughter. He has to check
with the organizational manual to know if he/she has the authority to issue the same letter. One
of the major principles of correspondence is that then letter has to be stamped and officially
and there must be a valid reason for the correspondence.

All records and correspondence must be received properly and filed. The sender or office must
keep a copy of the same correspondence. Organizations can adopt various ways to manage
their records and correspondence. The following ways can help organizations achieve efficient
and effective handling of records and correspondence.

 Implementing a correspondence management system

 Keeping order of important contacts and bringing them to order.
 Ensuring access to company correspondence templates
 Centralizing your correspondence
 Safeguarding the records and correspondence

Classification of information
Information classification refers to the process in which organizations assess the amount and
type of data that they have and the level of protection that the data requires. In most situations,
organizations classify information in terms of the level of confidentiality attributed to the
specific information. There are various ways in which organizations can classify their
information. For example, they can classify on the bases of;

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  Confidential where only the management of an organization have access to particular
information.
 Restricted information is only available to specific employees.
 Internal classification allows internal employees to have access to the particular
information.
 Public information is available and accessible to all persons within and outside the
organization.

When organization want to secure their information, they should follow the following
procedure accurately

 Enter all assets into inventories

 Classify the assets
 Label the information
 Establish the appropriate handling procedures.

Sensitization of employees on safeguarding confidentiality of information

It is important that organization sensitize their employees on the significance of maintaining
confidentiality in an organization, the organization can create workshops to train its employees
on the methods which they can apply to achieve confidentiality.

Methods of securing information

There are various ways through which organization can secure their information. They can use
the physical protection procedures such as keeping records under lock and key, digital
upgrading of records, limiting access, creating a retention plan and dispose the documents that
an individual does not need. Installing surveillance such as cameras to check on the movement
and access to where information is stored. An organization can also enhance its data security
through using the following methods.
 Using memorable and complex passwords
 Creating two factor authentications to limit the access to information
 Securing the logins information
 Safeguarding information confidentiality
 Encrypting data on devices and those on cloud
 Creating more processes for removing access to information
 Lock the areas that have hard copy records.

Challenges of safeguarding confidentiality in human resource communication

Human resource communication can experience various challenges in an attempt to establish
enhance confidentiality. Some of the challenges that they are likely to experience include;
 Breach of confidentiality.
 Increased cyber security issues
 Absence of appropriate tools to enhance confidentiality and privacy

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Advantages and disadvantages of safeguarding confidentiality
Advantages
 Helps to protect sensitive organizational information
 Enable companies to protect their secrets from competitors
 Helps companies to select information that they can release to the public
Disadvantages
 It decreases awareness and makes marketing difficult
 Information leaks may occur and expose companies.
 Reduces consumer trust.

Tracing of records and correspondences

Process of tracing
Organizations need a solution that will enable it to process, receive, track and respond to all
correspondences and its records. Tracking help to improve coordination and communication
for both internal and external operations. Tracking helps in reducing the operating expenses,
improves customer service, increases the level of productivity, reduces risks and guarantees
confidentiality. Organizations can use the following method to trace records.

 Implementing a tracing management system

 Keep track of all orders and important records and contacts
 Ensure access to organization approved records
 Centralize tracing
 Safeguard the tracing process.
Record tracing enables organization to keep track of their communication and ensure that
regulatory requirements have been met.

Conclusion
This learning outcome has covered safeguarding confidentiality of information. It started by
looking at familiarization with organizational policies then proceeded to discuss securing of
records and correspondences, discussed handling of records and correspondences in
circulation, sensitization of employee on safeguarding confidentiality of information and
finally looked into tracing of records and correspondences.

Further reading

1. Read more on the types of information that should be protected

2. Read on the effects of failing to maintain confidentiality in an organization.

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7.3.5.3 Self-assessment

Written assessment
1. In a human resource class, a student was asked to mention some of the advantages of
maintaining confidentiality. In his answers, the teacher rejected one, identify the one that the
teacher may have rejected
A. Helps to protect sensitive organizational information
B. Enable companies to protect their secrets from competitors
C. Helps companies to select information that they can release to the public
D. Helps to promote sales for an organization
2. Kioko has identified some strategies to use in keeping physical records, which among the
following fails to be part of the strategies
A. Creating locks and giving all persons a copy of the keys
B. Using restricted access
C. Using lockable cabinets
D. Application of reinforced storage
3. The following information relates to the procedure for establishing confidentiality in an
organization, identify the one that is not right.
A. Employees will not knowingly or wilfully reveal or distribute to any other party any
information that belongs to the organization
B. All documents and records that have confidential information established or given
to individuals have to be protected from any unauthorized access collection,
disclosure, use retention or disposal of information.
C. All employees or volunteers in an organization must remain confidential in all their
endeavours unless they have a written document that authorizes the release of
information about the company.
D. All employees are required to share the organizational information with their family
members
4. Halima, a human resource student wanted to know the most appropriate way to disclose
confidential information and had the following options, help her identify the most
appropriate one.
A. Make a decision and disclose the information
B. Share with her friends before disclosing
C. Disclose the information and warn the receiver not to say the source of the
information
D. Request for authority to share or disclose information.
5. A company wishes to identify the best strategies that it can apply to secure its digital
information, what steps can it take to achieve its objective?
6. An organization in Nakuru wishes to identify ways in which it can trace its records and has
come to you as an expert, what advice will you offer.

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7. Your local hospital has called you for an interview as a data expert to assess the strategies
that they install to protect patient information and attain confidentiality, explain your
responses of the strategies that the hospital can you to attain its objective. The hospital can
take the following initiatives to enhance confidentiality and create data security,

Practical question
You are required to;

1. Create a strong password for protecting information in your laptops

Resources
1. A laptop
2. Source of power
3. Chair and table

7.3.5.4 Tools and equipment

 Pen
 Writing pad
 Group discussions
 A laptop
 Source of power
 Chair and table

7.3.5.5 References

Bajrić, S. (2020). Data Security and Privacy Issues in Healthcare. Applied Medical Informatics.
42(1), 19-27.

Shenoy, A., & Appel, J. M. (2017). Safeguarding confidentiality in electronic health records.
Cambridge Q. Healthcare Ethics, 26, 337.
Thillaiarasu, N., & ChenthurPandian, S. (2019). A novel scheme for safeguarding
confidentiality in public clouds for service users of cloud computing. Cluster
Computing, 22(1), 1179-1188.

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7.3.6 Learning Outcome No 5: Manage communication on social media platforms
7.3.6.1 Learning Activities

Learning Outcome No5: Manage communication on social media platforms

Learning Activities Special Instructions

5.1. Identification of requirements for organization human Observation

resource social media Projects
5.2. Initiation of development and review of social media Review of portfolios
policies and procedures
5.3. Selection of the social media platform
5.4. Sourcing for content, both internal and external
5.5. Creation of opportunities to attract users
5.6. Responding and directing customers to relevant
information
5.7. Updating of the social media account
5.8. Enforcement of adherence to legal and ethical practices
5.9. Tracking social media activities
5.10. Reporting the social media engagements to management

7.3.6.2 Information Sheet NO 7 /LO 5: Manage communication on social media platforms

Introduction
This learning outcome covers ways of managing information on social media platforms. The
learning activities that this learning outcome covers include identification requirements for
organization of human resource social media, social media policies and procedures, selection
of social media platform, sourcing for content, creating opportunities that can attract users and
responding to customers. It also highlights ways of using social media account adherence to
the legal and ethical practices.

Definition of terms
Social media: Social media is a digital tool that enables individuals to create and share content
quickly with the public. The content can be ideas, interests and adverts

Content: In information and social media communication, content is the information that is
directed to an audience. It is expressed through a medium like speech writing and creation of
various arts

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Content/Procedures/Methods/Illustrations

SOCIAL MEDIA
Social media refers to an internet-based form of communication. Social media platforms allow
users to have conversations, share information and create web content. There are many forms
of social media, including blogs, micro-blogs, wikis, social networking sites, photo-sharing
sites, instant messaging, video-sharing sites, podcasts, widgets, virtual worlds, and more.

Billions of people around the world use social media to share information and make
connections. On a personal level, social media allows you to communicate with friends and
family, learn new things, develop your interests, and be entertained. On a professional level,
you can use social media to broaden your knowledge in a particular field and build your
professional network by connecting with other professionals in your industry. At the company
level, social media allows you to have a conversation with your audience, gain customer
feedback, and elevate your brand.

Social media is growing day by day for organizations. As it grows, it is gaining a lot of attention
and has contributed to various aspects in organizational development. Social media has become
a way through companies build their brand, empower their customers and address issues related
to public relations. Therefore, social media is relevant to the society for the following reasons
a) It has helped to improve brand awareness: Social media has given organizations an
opportunity and a platform to promote their brands to millions of people in just a click.
Through the use of social media, a company can increase its visibility levels to potential
customers
b) It has enhanced cost effectiveness: Social media is one of the free resources that is
readily available for marketing purposes. Organizations can use this media to market
their products and services instead of using millions in promoting advertisements on
televisions. Social media enables users to create content such as videos which can
enable the organization grasp the attention of its targeted audience.
c) Increases customer engagement: Social media platforms allows business people and
organizations to have conversions with their customers. The model allows for customer
engagement which leads to enhancement of customer voice.
d) Enhances brand loyalty: Social media enables an organization to find and connect with
its customers using its brand message. The organization can use its brad message to
create a bond with its customers which helps in creating a long-term relationship and
leads to the success of the business,
e) Enhances customer satisfaction: Since customers have a voice on social media, it
enables them realize that organizations hear their voice and their opinions about
products matter. As a result, they achieve satisfaction since their issues can resolved
easily.
f) Education: Social media is one of the tools that organizations can use for educational
purposes. They can educate their customers about the existing products and their uses
as well. Organizations can share articles and videos about their products which helps
customers to further understand the organizations products. Customers can as well use

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 social media to ask questions and seek clarifications in areas that they have not
understood.
g) Its influence on organization: Social media has significant influence to organizations
and their culture. It can influence the following processes and activities in an
organization
 Hiring processes: Social media sites such as LinkedIn offer platform where
individuals can create profiles and advertise themselves for jobs. Organizations are
able to visit the sites and hire the desired candidates with the desired right skills.
 Distribution of positive news: Employees in different organizations can share
positive news using social media platforms. For example, Toyota Company
increases its sales and becomes profitable, employees can post and share this
information with themselves. As a result, it helps to build and increase their
motivation.
 Creates competition: Social media has enhanced competition as different
companies are trying to offer better products on the media platforms. As the level
of competition increases, the quality of products and service delivery of
organizations increase as well
 Direct feedback from clients: It is through social media that customers will inform
the companies about their feelings concerning a certain company’s product. The
feedback from customers can enable the organizations to find out the best strategies
they can use to improve the quality and the services that offer to clients.

Initiation of development and review of social media policies and procedures

a) Social media ethical issues: With the increase in scepticism relating to what people read
online, it’s more significant than ever to pay attention to ethical issues in social media
marketing. Individuals that are ethical in their social media activities manage to
establish better relationships and trust with their audience and this makes it easier to
establish brand loyalty.
b) Social media is a fun and rewarding way of sharing opinions with family, friends and
co-workers in different places of the world. However, its usage presents a variety of
risks which require people to take responsibility of what whatever things they post
online and on social media platforms. To assist users in making responsible decisions
about what they post, various policies and guidelines and poli0cies have been developed
to guide people on how to use social media.
c) In an expanding world of electronic communication, social media can play many roles.
It can entail all forms of communication on the internet. The following policies and
guidelines can help people to use social media appropriately:
Knowing and following the rules: Social media has various rules such as ethics and policy,
information on policies and discrimination, information in preventing harassment and
information regarding abusive practices. All users need to know these policies and ensure that
their postings on the internet are in line with these policies. Inappropriate postings such as
discriminatory remarks, threats of violence and harassment ideas may not be tolerated on social
media. Such actions can lead to a disciplinary action or closure of the social media account.

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Be respectful: Individuals using social media should be fair and courteous to other people such
as customers, fellow workers, suppliers and other members of the public. People should not
post complaints on social media platforms before attempting to resolve them with their fellow
workers or their superiors. However, if one decides to post complains on social media, he or
she should ensure that he does not post photos or statements that are malicious, intimidating or
abusive to the intended recipient.

Maintain honesty and accuracy: It is important that individuals maintain honesty and accuracy
when posting anything on social media. In case you have made a mistake while posting
something, the best thing to do is to correct it immediately. Be open and accept any previous
posts that you may have posted and altered. One thing that people, should remember is that the
internet records and keeps most of the things posted. Therefore, individuals should not post
any information that they are not certain about.

Post respectful and appropriate content only: Maintain confidentiality of the trade secrets any
other confidential information. People should not post internal reports of an organization,
procedures or other internal communications. Respect financial disclosure laws: Individuals
should respect financial disclosure laws where individuals may communicate insider
information to people so that they can buy some products. Such activities are likely to violate
insider trading policies.

Monitoring social media tools

Monitoring means observing and seeing the behaviour of people interacting with social media.
There are various tools that can help to monitor social media activities. Monitoring helps
businesses to make informed decisions on how to promote their products. Some of the tolls that
can help in social media monitoring include
 Key hole
 Hootsuite
 Twitter counter
 Digimind
 Weet reach
 Sprout social

Advantages and disadvantages of media platforms

Social media has various advantages and disadvantages. Below are some of the major
advantages and disadvantages of using social media.
a) Enables you to reach a large audience: There are many people using social media.
Social media therefore offers a great opportunity for businesses to reach a large pool of
customers that are interested in their products.
b) It gives you direct connection with the audience: Social media allows individuals and
business people to connect with its audience. Social media helps businesses to know
their customers well which helps them deliver valuable products.
c) It helps to gain valuable interests: Social media enables business owners to get valuable
insights on how the clients perceive business. With social media, a business person can

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 know the people who interact with his or her posts. This helps the business person to
identify his or her target customers.
d) Provides an opportunity to create organic content: The ability to create organic content
on social media is an incredible benefit. It opens opportunities for businesses to connect
with others at no or reduced cost.
e) Helps in brand building: Social media has a high ability to help in building the brand.
Connecting with interested people enables you to expose new individuals who get to
know and identify the brand.

Disadvantages
a) Any organizational or marketing strategy can have disadvantages. As much as there are
disadvantages, it does not that the strategy is ineffective but it means one has to
overcome some challenges. Here are some of the disadvantages of social media.
b) It can give negative feedback: People use social media to post things they like but they
can also use it to post things that they do not like or poor experiences. If individuals
have poor experiences with a business, it creates an opportunity for them to share their
experiences with other people. Negative feedback can come in different ways, people
can leave negative reviews or tag posts with negative experiences. These actions are
likely to affect the business reputation.
c) It opens up potential for embarrassment: Posts on social media go viral very quickly.
People keep observing the good things as well as the bad things that are happening. If
one is not careful on what he or she is not doing, he may end up in an embarrassing
situation.
d) It is time consuming: For the use of social media to be effective, individual must spend
a lot of time by constantly updating content and product information to keep engaging
clients.
e) Hacking: Social media can expose personal and private data which can be hacked.
Hacking of private data may lead to financial losses or loss of life.
f) Addiction: Social media is addictive and can affect the lives of people negatively. It can
sway away the lives of people especially teenagers and cut them away from the society.

Selection of the social media platform

There are various social media platforms that business can use. However, it becomes
challenging to identify the best social media platform to use. Nevertheless, it is necessary that
social media users consider the following factors before they select the platform thy can use;
 Nature of the business
 Target audience
 Client demographics
 Location of the ideal and targeted customer.
 Type of competitors.

A critical assessment of the above factors will enable an individual to make an appropriate
decision on the social media platform to use.

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Sourcing for content, both internal and external
For businesses and organizations to use social media, they need to find content. Sometimes, it
becomes challenging to get sufficient and attractive content to place on social media. The
following can help in content creation for various social media platforms.
 Be proactive at work and create videos or take photos at your place of work and post
them.
 Involve the audience by creating channels and allow customers to share photos and
posts.
 Observe what the competitors are doing and attempt to find better and new ideas based
on what they do.
 Use Pinterest and google alerts to get content for your social media platform.

Creation of opportunities to attract users

Businesses that use social media needs to identify the best strategies that they can use to attract
customers and more users to their platforms. Some of the following strategies can help the
business attract users to the social media platform.
 Using blogs
 Email marketing
 Video channels
 Using sponsored links
 Creating events
 Creating contests.

Responding and directing customers to relevant information

Customers are the most significant part of any business. It is necessary that organizations focus
on what they need. Businesses need to respond to customer issues in a timely manner and offer
relevant information based on their inquiries.
The following are the key elements that businesses should do while responding to clients
 Respond in a timely manner
 Know the posts that they can respond to in public and those to respond to in private
 Include greetings in the responses
 Be courteous in the responses.
 Give names or initials for names while responding to clients.

Updating of the social media account

 It is very important to keep updating content on social media to ensure that you remain
relevant. An individual who has products and has not updated the products on social
media will not benefit from social media marketing. People and organizations can
follow the following steps to update their content.
 Google your business and see what customers are seeing to ensure that it is the right
content you want them to see?
 Claim your pages as you google to add value to your brand.
 Update your information with the right content that you wish people to see.
 Update the cover photos and profile phots as well

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  Refresh the social media calendar
 Clean social media inboxes.

Enforcement of adherence to legal and ethical practices

Enforcement and adherence mean implementing the policies and ethical practices while using
social media. All organizations using social media are expected to adhere to the established
legal and ethical practices to benefit from the use of social media.

Importance of ethical adherence

 It enhances the public image of the business
 It makes customers trust the products of the business
 It reduces costs which may come due to lack of adhering to the legal policies.
 It increases the engagement levels with customers.
 Enables the business to get loyal customers.

Conclusion
This learning outcome covered ways of managing information on social media platforms. The
learning activities that this learning outcome covered include identification requirements for
organization of human resource social media, social media policies and procedures, selection
of social media platform, sourcing for content, creating opportunities that can attract users and
responding to customers. It also highlighted ways of using social media account adherence to
the legal and ethical practices.

Further reading

1. Read more on ways through which business can engage their clients on social media
platforms
2. Read more on the most widely used social media platforms and indicate the approximate
number of people using the platform.

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7.3.6.3 Self-assessment

Written assessment
1. Felix has opened ae electronics shop in his areas but wishes to know the best strategies on
things to consider in selecting a social media platform that he can use to market his products.
He has found access to the following ideas but his friend tells him that one of the strategies is
not right. Help Felix identify the strategy that is not right.
A. Nature of the business
B. Target audience
C. Client demographics
D. Different business
2. St Francis hospital has suffered a bad reputation by failing to handle customer issues on
their social media platform. The manager has approached you and has asked you identify only
one thing that he can do to handle the situation. He has given you a set of options. Help him
select the best one.
A. Keep posting the hospital achievements
B. Continue assessing the needs of patients
C. Use data analytics to find the number of people on social media
D. Respond quickly to customer issues
3. Kenyatta University wanted to measure and monitor its social media interaction levels but
did not have the right tools. The university approached you for advice. Which of the
following tools would be appropriate for them?
A. Hootsuite
B. Using blogs
C. Email marketing
D. Video channels
4. As a student your teacher has asked you to identify one advantage of using social media
and has given you the following options. Identify the one you thing is the most appropriate.
A. Enhances brand loyalty
B. Enhances job creation
C. Helps to keep teenagers busy.
D. Facilitates communication
5. Imagine your friend has asked you to help him identify ways in which he can get content
for his work social media, mention the ways he can get this content
6. Jomonya enterprises, a business that sells T-shirts is finding it difficult to connect to its
clients on social media. One of the workers has asked you to help him with ideas to enhance
link customers to their social media platform. What strategies would you recommend?
7. Christine has never used social media but has come to you to help her know the advantages
of using social media for her business, explain five ways in which she can benefit from
using social media

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Practical question
You are required to:

1. Create a content that you will post on social media about your school.
Resources
1. A laptop
2. Source of power
3. Chair and table
4. Camera

7.3.6.4 Tools, Equipment, Supplies and Materials

 Records
 Documents
 Case studies
 Group discussions
 Observation
 Survey
 Interviews
 Questionnaires
 Articles

7.3.6.5 References

Lange, D. B., Yang, H. C., Zhang, X., Wheeler, G. A., Joyce, J. J., Moore, D. M., & Pandit, B.
(2016). U.S. Patent No. 9,294,576. Washington, DC: U.S. Patent and Trademark
Office.

Macnamara, J., & Zerfass, A. (2012). Social media communication in organizations: The
challenges of balancing openness, strategy, and management. International journal of
strategic communication, 6(4), 287-308.

O'Keeffe, G. S., & Clarke-Pearson, K. (2011). The impact of social media on children,
adolescents, and families. Pediatrics, 127(4), 800-804.

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7.3.7 Learning Outcome No6: Manage meetings at the workplace
7.3.7.1 Learning Activities

Learning Outcome No6: Manage meetings at the workplace

Learning Activities Special Instructions

6.1 Defining minute taking Observation

6.2 Highlighting the types of meetings Projects
6.3 Identifying structure of meetings Review of portfolios

7.3.7.2 Information Sheet No 3/LO6: Manage meetings at the workplace

Introduction
This learning outcome covers ways of managing meetings in an organization. It begins by
highlighting the process of minute taking, identifies the types of meetings that exist and also
identifies the structure of minutes. Additionally, the learning outcome covers purposes of
meetings and ways of holding effective meetings.

Definition of key terms

Minutes: In meetings, a minute is a record of the proceedings of a meeting. It includes the
people, who attended, issues discussed, the responses and the final decisions made to address
the issues.
Agenda: An agenda sets out the list of items to be discussed at a meeting. The purpose of the
meeting and. The order in which items are to be discussed, so that the meeting achieves its
purpose.

Content/Procedures/Methods/Illustrations
Workplace Meetings
Minute taking: In workplaces, employees and their employers hold meetings periodically for
various purposes. As they meet, they discuss various matters which are recorded in a document
called minutes. Minute taking is therefore the process of recording the progress of the meeting
beginning with members present and any other business that the meeting discussed. For the
minutes to be effective in their purpose, they should have the following qualities.

Qualities of a good minutes

Good meetings should have the following characteristics:
 Records attendance: Good meeting minutes must indicate the people who were invited
to the meeting and those who physically attended.


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  Decisions, actions and owners: Good meeting minutes denotes the items discussed,
decisions, and the action items that agreed upon during the meeting. It also records the
assignees or people that have been assigned to carry out various duties.
 Report and relevant files: In case that there were some copies or documents or files
presented during the meeting. They have to be included in the minutes and copies of
the same must be shared
 Use a structured format: Good minutes must have good structure and format. The
structure that you use in writing the minutes of the meeting is as important as the
information written in it. It is better to start your report with logistical facts that includes
the meeting time, date, venue and attendees. Then use the agenda as the outline of your
report. State the action items, files and assignees under each agenda item.
 Distribute the minutes: Ideally, minutes should be sent within 24 hours after the
meeting.

Types of meetings
There are various types of meetings based on the level of formality, the aim, the use, legality
and the type of people who participate in the meeting among others. However, the main
principle of the meeting is remaining common: A gathering of people. This part of the paper
looks at the different types of meetings that exist. There are several types of meetings;
 Formal Meetings.
 Annual General Meeting (AGM).
 Statutory Meetings.
 Board Meetings.
 Informal Meetings.

a) Formal Meetings: Various companies have indicated the how to hold meetings and
what they consider as formal meetings in the Articles of Association. The article of
association acts as a constitution of a company. Formal meetings have various
characteristics that must be met for the meetings to begin. The first condition that must
be met is that in such meetings, a quorum must be present, a quorum is the minimum
number of people that must be present for the meeting to commence. This meeting must
have a formal record of minutes which, in most cases are kept by the secretary.
Minimum number of people who should be present to validate the meeting. A formal
record of these meetings must be kept, usually by the company secretary.
b) Annual General Meeting (AGM): Annual General Meeting is a type of meeting that is
held once in a year. These meetings are held once a year to assess the activities of an
organization throughout the year. During this meeting, all shareholders are invited to
attend, however, but they must be given 21 days’ notice.
c) Statutory Meetings: These are special meetings held by directors and shareholders of
the organization so that they can communicate and consider some special reports that
have issues relating to the company. The law requires that companies hold statutory
meetings.

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 d) Board Meetings: These are meetings held by the members of the board of an
organization. They can be organized and held as many times as the board decides. All
directors of the organization must attend these meetings and they are chaired by the
chairman of the board.
e) Informal Meetings: Informal meetings are meetings that do not have regulations such
as those stipulates in formal meetings. Informal meetings can take different approaches
such as discussion sessions, or brainstorming. These meetings do not have strict agenda
and it is not necessary to keep a record of what was discussed in the meeting.

However, it is necessary that people, who are meeting have an agenda to discuss. The agenda
should be issued to all members before the meeting begins. This will enable members to get
some time and prepare themselves for the meeting since adequate preparations will enable
members give valuable contributions. These meetings are attended by a group of managers
who may need to discuss a specific matter, report of progress reports. For example, the
marketing manager, sales manager, production manager, and research and development
manager may meet to discuss the strategies that they can use in launching a new product. Such
kind of meetings are known as informal meetings.

Reasons for holding meetings

There are many reasons that businesses, organizations or individuals hold meetings. The
following are some of the reasons for holding meetings.
 To reach a common decision/agreement
 To solve a problem
 To understand a situation, exchange ideas and experiences
 To inform, explain, present ideas
 To give and get feedback on new ideas
 To give training
 To plan and prepare for action
 To resolve differences and misunderstandings
 To generate enthusiasm and seek cooperation
 To review past performance and evaluate it
 To create a feeling of continuity and solidarity in a body’s working.

Effective meetings
Meetings can be good or bad. There are various aspects and characteristics that people can
observe to determine if the meetings are effective or not effective. Bad meetings take a lot of
time without ending and without a particular objective. In some instances, people leave such
meetings and wonder why they attended. On the other hand, effective meetings leave attendees
energized and anxious for the next meeting. They make the members feel that they have
accomplished something. Sometimes, an individual may ask himself what makes a meeting
effective.

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To answer this question, one needs to look into the following three items;
 They achieve the meeting's objective.
 They take up a minimum amount of time.
 They leave participants feeling that a sensible process has been followed.
If all meetings are structures based on the above criteria, they can result into effective
meetings. The above criteria require preparation, planning and execution.

The Meeting's Objective: Effective meetings must have a specific objective or major
purpose. It therefore means that you achieve the objective through the meetings. For a
meeting to meet this outcome, or objective, the leader or holder of the meeting has to come
out and provide clear information about the objective of the meeting. In some instances,
people call meetings to discuss issues without developing the appropriate outcome of
objective of the meeting. When developing the objective of the meeting, ask yourself the
following questions.
 Do you want a decision?
 Do you want to generate ideas?
 Are you getting status reports?
 Are you communicating something?
 Are you making plans?
The above questions can form an objective. Therefore, before beginning or calling a meeting,
focus on the objective of the meeting and clearly identify the purpose of the meeting.

Use Time Wisely

Time is a very important factor to consider to make meetings effective. It is one of the rare
resources that people do not want to waste. It is necessary to streamline things and activities
in the meetings so that the time allocated is spent well. If you waste time in a meeting, you will
have wasted the time for all the people who were attending the meeting. For example, if a
critical person such as the secretary or the chairman gets late in a meeting, he would have
wasted the time for others. Therefore, it is important to keep time. Additionally, people get
tired and lose the consciousness when the meetings stay too long. It will make it unproductive.
For a meeting to be productive, ensure that you keep and use the time allocated for the meeting.
By beginning with the major objective of the meeting, whatever discussion held in the meeting
should help achieve or advance the objective. Anything that sways the meeting away from the
objective should be swayed.
For a meeting to ensure that it covers the necessary items, it is necessary that the team members
stick to the relevant activities of the meeting and create a specific agenda that will help steer
the meeting ahead. With a clear agenda, the meeting will accomplish its objective in the
stipulated time. In preparing an agenda for the meeting, it is good if the following factors are
out into consideration.
 Priorities: What things or issues must be covered?
 Results: What should the meeting accomplish?
 Participants: Which kind of people do you need to attend to make the meeting effective?
 Sequence: What will be the order of covering topics?
 Timing: What amount of time should you spend on each topic?

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  Date and time: What are the date and time of the meeting?
 Place: Which place will the meeting take place?

With a thought of what should be secured and for how long, you would then be able to take a
look at the data that ought to be arranged already. What do the members need to know so as to
take advantage of the meeting time? Also, what job would they say they are required to perform
in the meeting, with the goal that they can do the correct planning?

In the event that it's a gathering to take care of an issue, request that the members come arranged
with a viable solution. If it happens that you are examining a continuous task, have every
member sum up their progress to date and distribute the reports among individuals. Allocating
a specific subject of conversation to different individuals is another extraordinary method to
build contribution and intrigue. On the plan, show who will lead the conversation or
introduction of everything. Utilize your plan as your time control. At the point when you notice
that time is running out for a specific thing, think about hustling the conversation, pushing to a
choice, conceding conversation until some other time, or appointing it for conversation by a
subcommittee.

Satisfying Participants That a Sensible Process Has Been Followed

When you have a plan arranged, you have to circulate it to the members and get their criticism
and info. Running a meeting is certifiably not an authoritarian job: you must be participative
right from the beginning. Maybe there is something significant that a colleague needs to
include. Possibly you have designated excessively, or excessively little, an ideal opportunity
for a specific thing. There may even be a few focuses you've incorporated that have been settled
as of now and can be removed the rundown for conversation. Whatever the explanation, it is
significant you get input from the meeting members about your proposed plan.
 Once in the meeting, to guarantee most extreme fulfilment for everybody, there are a
few things you should remember: If certain people are dominating the conversation,
make a point of asking others for their ideas.
 At the end of each agenda item, quickly summarize what was said, and ask people to
confirm that that's a fair summary. Then make notes regarding follow-up.
 Note items that require further discussion.
 Watch body language and make adjustments as necessary. Maybe you need a break, or
you need to stop someone from speaking too much.
 Ensure the meeting stays on topic.
 List all tasks that are generated at the meeting. Make a note of who is assigned to do
what, and by when.
 At the close of the meeting, quickly summarize next steps and inform everyone that
you will be sending out a meeting summary.
After the meeting is over, take some time to debrief, and determine what went well and what
could have been done better. Evaluate the meeting's effectiveness based on how well you met
the objective. This will help you continue to improve your process of running effective
meetings.

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Structure of meetings
 Notice: A notice of a meeting is a document that informs the members and the directors
about an upcoming meeting. The document indicates the date, time and place of the
meeting. It also includes the nature of the items to be discussed in the meeting.
 Minute formats: Generally, minutes begin with the name of the body holding the
meeting (e.g., a board) and may also include the place, date, list of people present, and
the time that the chair called the meeting to order. Since the primary function of minutes
is to record the decisions made, all official decisions must be included
 Agenda: An agenda sets out the list of items to be discussed at a meeting. The purpose
of the meeting; and. The order in which items are to be discussed, so that the meeting
achieves its purpose.

Preparation of other relevant documents

i. Meetings require appropriate and relevant documents for them to become successful.
The following documents are relevant in carrying out meetings.
ii. Prepare notice of meeting, agenda and meeting papers in accordance with meeting
requirements
iii. Check documentation for accuracy and correct any errors
iv. Distribute documentation to participants within designated time lines
v. Prepare spare sets of documents

Minute format

Figure 30; Minutes format from pinterest

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Conclusion
This learning outcome has covered ways of managing meetings in an organization. It began by
highlighting the process of minute taking, identified the types of meetings that exist and also
identified the structure of minutes. Additionally, the learning outcome covered purposes of
meetings and ways of holding effective meetings.

Further Reading

Read more on the reasons why some companies fail to record the proceedings of their meetings.

7.3.7.3 Self-Assessment

Written assessment
1. Assume you are the chair of a meeting that discusses wedding proceedings, which of the
following is not a way you will consider to hold effective meetings
A. Identify the objective of the meeting
B. Manage time efficiently
C. Give all participants equal opportunity to contribute
D. Arrive late at the meeting
2. Assume you are a HR specialist and an amateur has come to seek advice on the purpose of
meetings. Which of the following will you advise is not a purpose of holding meetings?
A. To reach a common decision/agreement
B. To solve a problem
C. To enjoy moments with friends
D. To understand a situation, exchange ideas and experiences
3. Jemutai has come to you with a list of types of meetings and has a feeling that one of the
types of meetings listed is not correct. Help her identify it
A. Formal Meetings
B. Impromptu meetings
C. Annual General Meeting (AGM).
D. Statutory Meetings
4. Crispin wishes to know the various documents used in meetings and a friend has listed
some of the documents but failed in giving one right document, from the list provided, can
you help her find it?
A. Notice of meetings
B. Agenda
C. Minutes
D. Register

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5. As a secretary of a meeting, you have the role to write the minutes of the meetings. Which
aspects will consider when writing the minutes?
6. Your teacher has asked you to explain the types of meetings that organizations have.
Explain with sufficient details these types of meetings.

Practical Question
You are required to;

1. Hold a meeting with your class mates and prepare minutes of the meeting

Resources
1. Furniture (tables and chairs)
2. Writing materials and pens

7.3.7.4 Tools, Equipment, Supplies and Materials

 Records
 Documents
 Group discussions
 Observation
 Furniture (tables and chairs)
 Writing materials and pens

7.3.7.5 References

Tropman, J. E. (2013). Effective meetings: Improving group decision making (Vol. 17). Sage
Publications.
Baker, H. (2010). Writing Meeting Minutes and Agendas. Taking Notes of Meetings. Sample
Minutes and Agendas, Ideas for Formats and Templates. Minute Taking Training Wi.
www. UoLearn. Com.

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7.3.8 Learning Outcome No7: Write work place reporting
7.3.8.1 Learning Activities

Learning Outcome No7: Write work place reporting

Learning Activities Special Instructions

7.1 Emphasizing on the importance of reports in human Observation

resource function Projects
7.2 Describing the forms and types of reports Review of portfolios
7.3 Identifying reports formats
7.4 Preparation of reports

7.3.8.2 Information Sheet No 7 /LO 7: Write work place reporting

Introduction
This learning outcome covers work place report writing. It entails the importance of reports in
human resource function. It describes the forms and types of reports that exist in an
organization. It also explains the formats of writing a report and how to prepare before writing
a report.

Definition of key terms

Report writing: Report writing is the process of presenting information about a certain area
or subject matter in a clear and concise manner that can easily be understood by the audience
that it targets.
Report Format: Refers to as the standard way that report is encoded for a certain activity

Content/Procedures/Methods/Illustrations
Report writing
Introduction to report writing
A work report is an official document that deliberates evidence about a definite topic associated
to a facet of your job. Most work reports are addressed to a certain audience such as a manager.
There is a diversity of reports that people may need to write in various organizations. Some of
these reports can be sales reports, budgetary reports, financial reports and business analysis
data reports. In most circumstances, reports have a particular structure that they follow to
clearly demonstrate what they want to convey.

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For one to write an effective report, it requires the individual to have appropriate
communication skills and practice in report writing. The more you write reports the more
efficient and effective you become. An individual can follow some of the following steps to
write a good report in a work place
i. Identify your audience
ii. Identify the information you will include
iii. Develop a structure your report
iv. Identify the professional language to use
v. Proofread and edit your report

Identify your audience: Identifying the audience that will receive the information will act as
a guideline to determine the format, what to include and the tone of the report when writing.
For instance, if an employer is writing a sales report to his or her manager, not all people will
be reading the report apart from the manager. On the other hand, if one is writing a business
analyst report, the report will be written to the superiors. Knowing the target group and the
audience of the report will help in selecting the language to use in writing reports.

Decide which information you will include: Once you have identified your audience, you
need to focus on finding out the purpose of the report and the information that you need to
include in the report. When you know the audience that will read the report, you can ask
yourself some questions regarding what they expect to see in the report. With this question in
mind, select information that create and present a clear picture of what you are conveying in
the report. For instance, if you want to write a sales report, you can identify if the sales goals
have been met, the products and services that are selling at a faster rate and some of the
challenges that the sales team may be experiencing. You can also include periodical objectives
that the sales team has for the business.

Structure your report: The structure of the report is very important. One should structure the
report so that it can be easily digested by its audience. Although reports may vary in different
ways, the report should have the following sections:

i. Title or title page

ii. Executive summary/abstract that briefly describes the content of your report
iii. Table of contents (if the report is more than a few pages)
iv. An introduction describing your purpose in writing the report
v. A body paragraph where you include the information you are conveying with the report
vi. Conclusion or recommendation depending on the purpose of the report

Use concise and professional language: As you write a report, you should strive to use clear
and brief language. Try to get the point across as clearly and quickly as possible and use simple
yet professional language. Avoid utilizing a lot of words in a sentence. For example, you could
say refresh your inbox regularly rather than saying "you may find it supportive to frequently
refresh your inbox to stay up-to-date on emails,"

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Proofread and edit your report: Proofreading forms another essential part of report writing.
The step helps individuals to ensure that they have a professional report and have included the
appropriate items in the report. Proofreading enables individuals writing reports to edit and
correct any mistakes they could have made while writing the report. Proofreading also allows
you to cut out any unnecessary information and make sure that your report is as efficient and
effective as possible. After finishing writing a report, you need to set it aside or give it to your
peer to read and help you make appropriate corrections.

Importance of reports in human resource function

Reports have a significant function to the human resource department. They help to focus
on people who are engaged in carrying out day-today work and activities within the
organization. These reports can play a key role in demonstrating various issues in employment
such as the working conditions, levels of employee satisfaction and other historical trends. This
information helps the Huan resource management to make appropriate decisions.

HR reports identify weaknesses: It is difficult for organizations to grow if they do not

strengthen weak issues in their practices. Human resource departments are a central hub of
organizations where all elements of an organizations that are not working are reported to. The
reports reach the human resource department so that it can develop training strategies to equip
employees with appropriate training skills to tackle the challenges that the organization is
experiencing. For example, if the HR departments identifies that some of the members of the
sales team have poor negotiation skills that prevents them from closing a sale, it will be an
indication that there were poor recruitment practices and that there is a need for training.

Employee turnover pattern is another significant area that the human resource department
should pay much attention to. When employee turnover rate is high, the human resource
department needs to assess the working conditions and work environment that employees are
exposed to. Identifying some of the issues in the work environment will enable the organization
retain talented and top employees.

Future planning with HR reports: Reports helps the human resource department to plan for
future activities. Reports can help the organization identify some of the challenges it may have
experienced from the past and find ways to amend and improve its work conditions to avoid
such challenges.

Effectively tracking employee performance: Managers can use reports to identify the
performance of employees. From the reports, managers can easily know where the employees
are experiencing challenges and establish plans to help the employees overcome their
challenges. In some situations, some employees are just lazy and do not want to perform.
Managers can identify these kinds of people through reports and identify the necessary step to
take against such employees. Trough reports managers can also identify performing employees
and reward them appropriately to boost their morale.

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Forms and types of reports
a) Formal or Informal Reports: Formal reports have a formal structure and they focus
on the objectivity of the organization. They have more details and are written in a style
that tends to eliminate such elements as personal pronouns. Informal reports on the
other hand, are usually short messages that have a casual use of language. The internal
memorandum can generally be described as an informal report.
b) Short or Long Reports: Reports can be long or short. A memo is considered a short
report. It is challenging to classify reports as long or short. However, the purpose of the
report can make it long or short.
c) Informational or Analytical Reports: Examples of Informational reports include
annual reports, monthly financial reports, and reports on personnel absenteeism. These
types of reports carry objective information from one area of an organization to another.
Analytical reports (scientific research, feasibility reports, and real-estate appraisals)
present attempts to solve problems.
d) Proposal Report: This is a type of report that helps to develop a solution to a specific
problem in an organization. A proposal is a document that organizations prepare to
illustrate how an organization can meet its needs. Most governmental agencies
advertise their needs by issuing “requests for proposal” or RFPs. The RFP specifies a
need and potential suppliers prepare proposal reports telling how they can meet that
need.
e) Vertical or Lateral Reports: Reports can move from managers to employee or from
employees to managers or between managers and between employees. The direction
that the report takes classifies it as vertical or lateral. Reports that more upward or
downward the hierarchy are referred to as vertical reports; such reports contribute to
management control. Conversely, lateral reports help in coordination in the
organization. A report traveling between units of the same organization level
(production and finance departments) is lateral.
f) Internal or External Reports: Internal reports travel within the organization. External
reports, such as annual reports of companies, are prepared for distribution outside the
organization.
g) Periodic Reports: Periodic reports are issued on regularly scheduled dates. They are
generally upward directed and serve management control. Pre-printed forms and
computer-generated data contribute to uniformity of periodic reports.
h) Functional Reports: This classification includes accounting reports, marketing
reports, financial reports, and a variety of other reports that take their designation from
the ultimate use of the report. Almost all reports could be included in most of these
categories. And a single report could be included in several classifications.

Reports formats
 Pre-printed Form: Basically for “fill in the blank” reports. Most are relatively short
(five or fewer pages) and deal with routine information, mainly numerical information.
Use this format when it is requested by the person authorizing the report.

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  Letter: Common for reports of five or fewer pages that are directed to outsiders. These
reports include all the normal parts of a letter, but they may also have headings,
footnotes, tables, and figures. Personal pronouns are used in this type of report.
 Memo: Common for short (fewer than ten pages) informal reports distributed within
an organization. The memo format of “Date,” “To,” “From,” and “Subject” is used.
Like longer reports, they often have internal headings and sometimes have visual aids.
Memos exceeding ten pages are sometimes referred to as memo reports to distinguish
them from shorter ones.
 Manuscript: Common for reports that run from a few pages to several hundred pages
and require a formal approach. As their length increases, reports in manuscript format
require more elements before and after the text of the report. Now that we have surveyed
the different types of reports and become familiar with the nomenclature, let us move
on to the actual process of writing the report.

Reports preparation
When writing a report, you should structure it so that it can be easily read and digested. While
each report will vary in the sections you should include, you can use the following report
components as a guide when writing your report:
i. Title or title page
ii. Executive summary/abstract that briefly describes the content of your report
iii. Table of contents (if the report is more than a few pages)
iv. An introduction describing your purpose in writing the report
v. A body paragraph where you include the information you are conveying with the report
vi. Conclusion or recommendation depending on the purpose of the report

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Figure 31; Report format from Pinterest

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Conclusion
This learning outcome covered work place report writing. It entailed the importance of reports
in human resource function. It described the forms and types of reports that exist in an
organization. It also explained the formats of writing a report and how to prepare before writing
a report.

Further Reading

1. Read on how organizations use reports to promote organizational effectiveness

2. Read on the circumstances that lead to a demand for periodical and impromptu reports.

7.3.8.3 Self-Assessment

Written assessment
1. Your teacher has asked you to prepare a report on the causes of drug abuse amongst most
college students and has given you the following ideas to structure your report. Which of
the following ideas does not fit in structuring a report?
A. Title or title page
B. Executive summary
C. Table of contents
D. Language used
2. A student wanted to know the various types of reports that exist in organizations. In his
research, he identified the following types.
A. Formal reports
B. Critical reports.
C. Foundational reports
D. Perpendicular reports.
3. Halima wanted to identify the appropriate steps of report writing. She listed the steps but
felt she had gone wrong somewhere, help her identify the step that is not correct.
A. Determine the length of the report
B. Identify your audience
C. Identify the information you will include
D. Develop a structure your report

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4. Amina wanted to write to her boss to inform him that she would be attending the next
general meeting. From the following which format of report can she choose to pass the
information to her boss?
A. Manuscript
B. Memo
C. Letter
D. Fill in form
5. Your teacher has asked you to identify the appropriate steps to write a report. List the steps
6. It is necessary that a report writer knows all the necessary sections of a report. Assume a
student has come to you to seek guidelines on the same, which section will tell him or her
a report needs to have?
7. A human resource manager has been looking into various reports but does not really know
how the reports can be of help to him, explain to him how the reports are beneficial to his
role

Practical Question/Case study

You are required to;
1. Write a report on the performance of your class as compared to other classes in the
school
Resources
1. Furniture (tables and chairs)
2. Writing materials and pens

7.3.8.4 Tools, Equipment, Supplies and Materials

 Records
 Documents
 Group discussions
 Observation
 Articles

7.3.8.5 References

DeCenzo, D. A., Robbins, S. P., & Verhulst, S. L. (2016). Fundamentals of human resource
management. John Wiley & Sons.
Schneider, W. J., Lichtenberger, E. O., Mather, N., & Kaufman, N. L. (2018). Essentials of
assessment report writing. John Wiley & Sons.
Appleman, J. E. (2017). 10 steps to successful business writing. American Society for Training
and Development.

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 CHAPTER 8: MANAGE EMPLOYEE RELATIONS
8.1 Introduction
This unit specifies the competencies required to manage employee relations. It involves
Identifying the nature and importance of employee relations, managing Collective Bargaining
(CB), carry out career progression in line with career guidelines, engage trade unions in
negotiations, enforce compliance with stipulated Occupational Health and Safety (OHS)
standards, Initiate employee grievances and disputes resolution mechanism and Coordinate
employee’s welfare programmers.

8.2 Performance Standard

Identifying the nature and importance of employee relations, managing Collective Bargaining
(CB), carry out career progression in line with career guidelines, engage trade unions in
negotiations, enforce compliance with stipulated Occupational Health and Safety (OHS)
standards, initiate employee grievances and disputes resolution mechanism and coordinate
employees welfare programme as per set standards.

8.3 Learning Outcomes

8.3.1 List of Learning Outcomes
a) Identifying the nature and importance of employee relations
b) Managing Collective Bargaining (CB)
c) Carry out career progression in line with career guidelines
d) Engage trade unions in negotiations
e) Enforce compliance with stipulated Occupational Health and Safety (OHS) standards
f) Initiate employee grievances and disputes resolution mechanism
g) Coordinate employee’s welfare programme

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8.3.2 Learning Outcome No 1: Identifying the nature and importance of employee
relations
8.3.2.1 Learning Activities

Learning Outcome No1: Identifying the nature and importance of employee relations

Learning Activities Special Instructions

1.1. Identification of the meaning of employee relations as per Observation

the SOPs. Projects
1.2. Highlighting the elements of employee relations as per the Review of portfolios
SOPs.
1.3. Analysing the scope of employee relations as per the SOPs.
1.4. Underlining the importance of employee relations as per
the SOPs
1.5. Distinguishing employee relations is from industrial
relations.
1.6. The importance/role of employee in management of
organizations

8.3.2.2 Information Sheet No8 /LO1: Identifying the nature and importance of employee
relations

Introduction
This learning outcome covers the meaning, elements, scope and importance of employee
relations as per the SOPs, distinguishment of employee relations from industrial relations and
the importance/role of employee in management of employee relations.

Definition of key terms

Industrial relations: Is the relationship or interactions between an employer and employee
within a certain organization.

Employee relations: Refers to a firm’s ability to create and maintain a positive relationship
with its labourer’s (employees).

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Content/Procedures/Methods/Illustrations
Employment relations

Elements of the employee relation

The formal and informal employment policies and practices of the organization.
 The development, negotiation and application of formal systems, rules and procedures
for collective bargaining, handling disputes and regulating employment.
 The bargaining structures, recognition and collective agreements and practices that
have evolved to enable the formal system to operate.
 Policies and practices for employee voice and communications.
 The informal as well as the formal processes that take place in the shape of continuous
interactions between managers and team leaders or supervisors on the one hand and
employee representatives and individuals on the other.
 The philosophies and policies of the major players in the industrial relations scene: the
government of the day, management and the trade unions.
 A number of parties, each with different roles. These consist of the state, management,
employer’s organizations, the trade unions, individual managers and supervisors, HR
managers, employee representatives or shop stewards and employees.
 The legal framework.
 A number of institutions such as in the UK, the Advisory, Conciliation and Arbitration
Service (ACAS) and the employment tribunals.

Overview of employee relations process.

a) Identify employee relations issues which require policies and procedures: Laws and
regulations mandate some workplace policies and procedures. Some examples of these
are: All employment decisions should be made on a completely non-discriminatory
basis, and management's actions should not inadvertently create barriers for qualified
women, minorities, persons with disabilities, or other underutilized groups of people.
b) Establish and document all employee relations policies and procedures: Entities should
have human resources manuals which document employee relations policies and
procedures. These policies and procedures should be in compliance with applicable
federal and state laws and regulations. E.g. disciplinary action
c) Communicate policies and procedures to employees: Entities should have established
mechanisms to communicate these policies and procedures to all employees. Any
revisions to the policies and procedures should be communicated to employees in a
timely manner. Employees should have access to human resource manuals which
outline the policies and procedures dealing with employment.
d) Designate a staff person to handle employee relations problems: Employees should
know whom to contact when they have questions or concerns about a policy or
procedure and when they need to discuss work related and/or personal matters. The
information should be kept appropriately confidential.

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 e) Review and update employee relations policies and manuals: Entities should review
their human resources manuals periodically to ensure that policies and procedures are
updated and appropriate. Case law should be reviewed for decisions which affect
human resource policies. Exit interviews should be held for every employee leaving the
entity. Employees should be surveyed to determine if the current policies and
procedures are meeting their needs. The results of the surveys, as well as the exit
interviews, should be used to adjust the current policies where feasible

The scope of the employee relation

 The relationship between or among employees, between employees their superior and
managers.
 A collective of relationships between trade unions and managements. Also known as
union-management relations.
 A collective of relations between trade unions, employer’s association and
Government.

The importance of employee relations.

a) One of the importance of employee relations is that it engages employees in their work
force. An engaged employee tends to perform better and thus higher productivity.
Therefore, companies with open channels of communication tend to engage their
employees more.
b) Another importance of importance of employee relations is it leads to employee
satisfaction. Less engaged employee is less satisfied and this is one of the causes of
poor relations. Therefore, an organization should strive to communicate and relate
more with employees and this will lead to better relations within the organization.
c) Employee Productivity. Employee engagement and satisfaction are the major boost for
employee productivity. Companies with well-structured relations tend to enjoy more
revenues, profits and as well as productivity. When employees know what their goals
are and constant feedback is given to them then they tend to work harder towards
achieving a specific objective.
d) Employee Retention. One of the biggest problems occurring in a company is employee
turnover. This is because employees who don’t know what is going on in the company
tend to feel isolated and frustrated hence venturing for better job opportunities.
e) Employee Advocacy. In order for employers to be ready to improve employee relations,
they need to keep employees in the loop and share important content information with
them.
f) Employee experience. A good employee experience is one of the healthy proofs of a
healthy working cultural environment. To deliver good employee experience,
employers need to adapt to open and transparent communication channels which will
make employees feel involved which will lead to higher employee engagement.
g) Employee empowerment. Employee empowerment is where employees want to be
involved and they want to have a certain level of decision-making power. Giving
employees the autonomy and responsibility to manage their own work and make certain

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 decisions to reach their goals will lead to employee empowerment. In order to achieve
this, you need to have good employee relations and communication strategy.

Distinguish employee relations from industrial relations.

Employee Relations is a two-person relationship between an employer and an employee while
Industrial relations is a three-person relationship between the organization, the union and the
union that represents the workforce.

The importance/role of employee in management of an organization.

a) Influences over or some positive customer relationships. Investing in your employees by
keeping them informed and equipped will lead to a positive relationship with your
customers thus increase in profits.
b) Company growth. Employees play an important role by branding the company they work
for. A highly motivated task force will lead to better results within the organization as
compared to a demotivated workforce.
c) Increased productivity. A motivated workforce will lead to increase in profits in the
organization because they are involved in the activities of the organization and they are
highly skilled and trained.
d) Increased profits. Employee engagement and commitment will lead to better management
within an organization thus leading to better profits and sales.
e) Workforce diversity; when you employ people from different diversity it is vital for
employees because it manifests itself in building a great reputation for the company,
leading to increased profitability and opportunities for workers.

Conclusion
This learning outcome covered the terms, contents, process, scope, importance of employee
relations as per SOPs as well as distinguishing between employee and industrial relations and
outlining the importance and role of employee management in an organization.

Further reading

Read more on reasons for increased profits in an organization from The Employee relations
Framework Learning Outcome by Dicky Lawrence.

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8.3.2.3 Self-Assessment

Written Assessment
1. Kagira wants to come up with a trade union in the Eastern Province side in Kenya. Which
among the listed answers comes first as listed below so that he can follow a smooth
registration process.
A. Right of Appeal
B. Apply for registration
C. Obtaining a provisional Certificate
D. Issuance of certificate Registration
2. Jim is frequently late at work. In response, Maria’s Manager has given Maria time off with
pay to think about whether she wants to follow the rules and continue working for the
company. Which disciplinary method is Maria’s manager MOST likely using?
A. Progressive disciplinary action.
B. Hot Stove approach
C. Disciplinary action without punishment
D. Punitive disciplinary action
3. Raj is the manager of XYZ Ltd found that skills of workers and machinery used by them
as compared to the competitors in the market are obsolete within a year. Which type of
challenge is XYZ facing in the following situation?
A. Multiple Stakeholders
B. Rapid Pace of change
C. Globalization and culture
D. High Quality and Low Quality
4. Mr. Akash has a job that pays a handsome salary. He has excellent relationship with
colleagues and his seniors. Also, the company policy fits well with his belief system, and
that he has been given recognition for his achievements at the company. Which of these
following factors is the most suitable for the fact that Mr. Akash loves his job?
A. High compensation
B. Good nature of peer relationships
C. Good nature of supervisors’ relationships
D. Recognition for his achievements
5. Being a Registrar, you may cancel or suspend the registration of a trade union, employers’
organization or federation. Under what circumstances can make you the Registrar terminate
the trade union, employers’ organization or federation?
6. XYZ Company is a Human Resource Consultancy firm and has been conducting a survey
on how to improve employment relations across the country. Apart from Wages and
employment, how other ways can they measure the changes in conditions of employment

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7. Employee Relations is a two-person relationship between an employer and an employee
while Industrial relations is a three-person relationship between the organization, the union
and the union that represents the workforce. Describe the importance/role of employee in
management of an organization.

CASE STUDY (NAIROBI CITY WATER AND SEWERAGE COMPANY)

Water scarcity is a serious problem in Kenya’s urban centres which have continued to receive
huge populations resulting from rural urban migration. The situation is further aggravated by
the phenomenon of climate change and poor land use in catchment areas. Although the
Government of Kenya has been undertaking a series of reforms aimed at enhancing quality,
efficiency and transparency in service delivery by Water sector institutions, access to
sustainable water supply services remains a challenge. Nairobi City Water and Sewerage
Company is charged with the responsibility of providing water and sewerage services to the
residents of Nairobi and the surrounding environs. The focus of the company is to effectively
and efficiently provide quality 11 and reliable services at affordable cost to the customers
(NCWSC Strategic Plan, 2014/15 – 2018/19).
Despite notable performance of water and sewerage services to the residence of Nairobi City
County the Company was ranked number 17 out of 88 Water Service providers in Kenya in
2017.That was the worst ranking ever as compared to previous years. The company performed
poorly on water supply where the average supply of water to residents was 6 hours against the
target of 24hours. The poor rating collabourates customer’s complaints of supply fails. Another
area of poor performance was on reduction of Non-Revenue Water that stood at 38% against
the benchmark of 25% (WASREB Impact Report Issue No.10, 2018). Non-revenue water and
supply fail according to WASREB is attributed to integrity issues where staff colludes with
customers to connect illegal connections to evade paying for water. The total population
serviced is 3.4M; total number of connections is 604,649 while the active accounts are582,
502.

The revenue turnover from the active accounts of Ksh. 112,819 billing was Kshs.9. 6Bn.This
implies that if the company reduce non-revenue water by 13 percent to hit the 25 per cent
benchmark it would realize turnover of Ksh. 20Bn and monthly collection of Kshs.1. 6Bn.From
the mathematics the revenue loss could have been used in expanding the infrastructures geared
towards reduction of water rationing programme that are currently in place, and being tightened
every other day either due to lack of rain or expanding population. In recent years, Kenya has
been experiencing a lot of industrial action by trade unions especially in the Public Sector.

The Labour Commissioners Annual Report (2016/2017) indicates that they settled 667 disputes
while strikes and lock outs 12 incidences were 16. The strikes involved a total of 18,131
employees resulting to a total of 379,901 man hours lost. Worth noting is that out of the 16,
water service providers were not affected majority incidences occurred in health and education
sector. Despite the fact that the water service providers did not go on strike, Nairobi City Water
and Sewerage Company participated in a go slow in 2017 due to leadership wrangles at board
level and management.

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The operational and performance challenge aforementioned is an indicator that there exists a
problem and may be the problem is associated with employee relations strategies employed in
the organization. For effective output, communication of organization performance, what is
expected from employees, coupled with involving employees in matters of the organization,
provision of modest employee welfare and embracing of vibrant grievance resolution
mechanism has a bearing on organization performance.

These objectives can be attained through implementation of sound employee relations policies
and strategies and hence the researcher’s rationale of seeking to assess the influence of
employee relations strategies at Nairobi City Water and Sewerage Company.
1. From the above case study, kindly state Four recommendations that can be put in place to
enhance a positive working environment at Nairobi City Waters and Sewerage Company.

2. Discuss the overview process of Employee relations that can be implemented in the
organisation.
3. State the four employee relations strategies that were deduced from the study.

8.3.2.4 Tools, Equipment, Supplies and Materials

 Polices, guidelines and regulations Strategic plans

 Career progression manuals
 Organization structure, policies and procedures
 Contracts and Agreements

References

Naliaka Rose, 2019, employee relations strategies and performance of water and sewerage
service provider in Nairobi city county, Kenya.

Tropman, J. E. (2013). Effective meetings: Improving group decision making (Vol. 17). Sage
Publications.
Baker, H. (2010). Writing Meeting Minutes and Agendas. Taking Notes of Meetings. Sample
Minutes and Agendas, Ideas for Formats and Templates. Minute Taking Training WI.
Www. UoLearn. Com.

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8.3.3 Learning Outcome No 2: Managing Collective Bargaining (CB)
8.3.3.1 Learning Activities

Learning Outcome No2: Managing Collective Bargaining (CB)

Learning Activities Special Instructions

2.1. Definition of collective bargaining as per the SOPs. Observation

2.2. Analysing the types of collective bargaining in employee Projects
relations as per the SOPs Review of portfolios
2.3. Discussion of the contents of collective bargaining
agreement as per the SOPs
2.4. Identification of the conditions for success in CB as per the
SOPs
2.5. The challenges facing CB

8.3.3.2 Information Sheet No8/LO2: Managing Collective Bargaining (CB)

Introduction
This learning outcome covers the definition, analysing the types, discussion of the contents,
and identification of the condition for the success and the challenges of Collective Bargaining
as per the Standard Operating Procedures.

Definition of key terms

Collective Bargaining: It is a process of negotiation between the working people through their
unions, where they negotiate contracts with their employers aimed at an agreement to
determine their terms of employment including pay, benefits, leave, job and other aspects of
workers compensation and rights for workers.
Collective Bargaining Agreement: It is a written legal contract reached as a result of
negotiations between representatives of a union representing the employee and the employer.

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 Content/Procedures/Methods/Illustrations

COLLECTIVE BARGAINING
Introduction to collective bargaining
Refers to all negotiations which take place between an employer, a group of employers or one
or more employers’ organization, on the one hand, and one or more workers organization on
the other, for determining working conditions and terms of employment; and/or regulating
relations between employers and workers; and/or regulating relations between employers or
their organizations and a workers' organization or workers' organizations.

Process of collective bargaining.

i. Preparing for negotiations. This is the first process of negotiation where both teams one
from the management and the other one from union representative will be involved. Both
parties should be well prepared for negotiation before going so that proper negotiation is
achieved. The preparation would cover the issue, parties involved, cost and impacts and as
a result this will bring confidence in the participating parties and will result to effective
negotiation.
ii. Identifying bargaining issues: The second step is now preparation of demands where the
issues and possible related areas for discussion are to be identified. Here all detailed
information has been collected. The charter of demands prepared by management to the
union is prepared by members of negotiating team in consultation with other employees of
the organization and if necessary, an outside party is permitted.
iii. Negotiations procedure: This means how the negotiation procedure will take place.
Already, the negotiation has already started taking place. Here, it will show the activities
to be undertaken, the performer, and sequence and timing activities. The process and
authority should be clearly spelt out during negotiations by the management.
iv. Reaching the agreement: The negotiation process has already begun when both concerned
parties meet and submit its demands on the table to the other parties. The trade union
submits it demands to the management and bargaining takes place. Through the discussion
they reach an agreement. The main point is to keep the entire package and its ultimate
results rather than immediate gains and losses. Negotiation completes with a mutually
acceptable agreement.
v. Ratifying the agreement: The outcome of collective bargaining is the preparation of an
agreement. Whatever was discussed and reached to an agreement is to be ratified by both
parties. Here legal terminology should be avoided at all cost. Once the agreement is ratified,
the issue of difference conflict is now over and negotiations have now come to an aid.
Without acceptance, negotiation cannot be completed.
vi. Administration of the agreement: Here the agreement is accepted and signed. The
agreement has been assigned as per the terms and conditions of the agreement. If in doubt,
the agreement in writing would be referred. If the process completes the above steps, then
we can conclude that collective Bargaining process is complete. None the less, if some
steps were not followed, we can say the collective bargaining was a failure or ineffective.

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Types of collective bargaining in employee relations
Distributive Bargaining
Distributive bargaining is defined as a negotiation process by which one party benefits at the
others expense. This usually refers to the redistribution of income in the form of higher wages,
higher bonuses, or higher financial benefits. Simply put; anything related to the transfer of
money.

In this type of bargaining, the trade union needs to have enough market power to win the
negotiation. The employer will want to pay as little in wages. Yet in order to convince them to
pay more, the trade unions need enough members to provide a significant incentive.
In other words, a trade union that has 100 percent of the employer’s workforce has significant
power. Should they call a strike, it would cause severe disruption to the employer.
Consequently, any distributive bargaining will be skewed significantly in favour of the unions.
Integrative Bargaining
Integrative bargaining is whereby both sides aim to benefit in what is seen as ‘win-win’
bargaining. Both parties may bring together a list of demands by which an agreement is reached
that benefits both parties.
To put it another way, integrative bargaining involves both parties considering the others point
of view, needs, wants, fears, and concerns. As a result, both parties either loss or gain by the
same amount. For example, unions may advocate for greater levels of staff training. Now this
may cost the business more, but it will benefit from greater levels of productivity in the long
run. If workers are better trained, they are equally going to be more productive. So, the business
and the union’s workers may gain as a result.

We can also look at integrative bargaining where both sides lose in order to gain. For example,
the unions may be willing to give up yearly bonuses in order to have a higher annual salary.
Or, alternatively, the union would accept a pay freeze in order to accept better working
conditions. So, the workers would lose out from lower real wages, whilst the employer would
have to invest in better conditions.

Productivity Bargaining
Productivity bargaining involves both parties negotiating around productivity and pay. So,
unions may suggest that higher salaries would boost productivity. However, this is unknown
to the business. So, target-orientated bonuses may be suggested, or new ways of improving the
process.

Unions may suggest new ways of organizing the worker force than may increase productivity
and therefore create value to the firm. In turn, employers would look to increase employees’
wages as a result. Simply put, productivity bargaining is where the two parties look to agree to
changes that would boost productivity in return for higher wages or other benefits.

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Composite Bargaining
Composite bargaining refers to a negotiation that focuses on a number of elements that are not
related to pay. They are generally related to employee welfare and job security. For instance,
it covers factors such as working conditions, policies, recruitment, and disciplinary processes.

The aim is to ensure a mutually beneficial long-term relationship between the employer and
employee. It does this by highlighting issues that employees may have, which may impact their
long-term future at the company.

Businesses want to retain talent, particularly if they spend time and money training them up.
Factors such as workload and working conditions can impact on this long-term relationship.
So, it is in the best interest of both parties to ensure that the employees are happy.

Concessionary Bargaining
Concessionary bargaining is based on unions giving back previous benefits to the employer.
For instance, trade unions may agree to lower wages in return for job security. This may come
during an economic decline whereby job security is more important to the unions than higher
wages. Overall, this may actually benefit the company as they won’t have to pay for so many
redundancies and can keep workers on.
The main aim of concessionary bargaining is to strengthen the business in order to ensure its
survival alongside its employees. So, unions give back previous benefits in order to secure the
businesses long-term future and therefore its members.

Conditions for success in collective bargaining

Favourable Political Climate: For collective bargaining to be effective, there has to be a
favourable climate which has to exist. Both parties (the government and public opinion) have
to be convinced that collective bargaining is the best method for regulating employment
conditions. The government has to remove all legislative restrictions that might hamper
collective bargaining.

Strong and Stable unions: Trade unions have to be strong and well represented in order to
bargain with the employer on an equal basis. Trade unions must be stable and strong enough
to honour the collective bargaining agreement and as well have a sufficient number of members
to justify entering into collective bargaining agreement.

Recognition: In order for a trade union to be recognized, it has to be stable and strong but until
then it will hardly have any impact. Collective bargaining cannot exist or sojourn until the
union is well recognized and regarded as an integral part of industrial relations. The employer
must have an interest and recognize a strong union to avoid strikes and to safe guard against
undercutting labour standards.

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Willingness to give and take: Both parties that is the employer and union leaders should
negotiate in a spirit of compromise and reciprocity. If either of the party adopts an adamant
attitude, then collective bargaining will not be possible. Willingness to give and take should be
a two-way traffic and that does not mean that concessions made by one side must be marked
equal concession by the other side or party. Exaggerated demands must be tone down to reach
an agreement.

Negotiators Authority: The conditions must be developed to ensure that the negotiators have
full constituencies to bind the agreement. If bargaining representatives keep referring to their
work back and forth then it makes the bargaining process ridiculous and ineffective.
Fair practices: Collective Bargaining will only be possible in an environment where there is
mutual trust and recognition. Therefore, both parties should avoid unfair labour practices.
Management must accept and recognize the rights of workers and fight for justice as well as
workers and unions must recognize the rights of the employer to manage.

Positive Attitude: The negotiating teams should both have a problem solving and positive
attitude rather than a fighting approach. In an environment where there are conflicting attitudes
will lead to amicable labour relations rather it may foster union militancy.
Continuous Dialogue: When talks continue, agreement will be possible. A dead end should
be avoided so that swift talks continue well. It is better to leave a highly controversial issue for
the time being and narrow down field of disagreement on other matters.

Availability of data: It is important to ensure that all record leaves are available. Facts and
figures relating to their employees and working conditions provide a base for negotiation.
But unless a trade union believes in data and accepts the same collective bargaining process
may be hampered.

Challenges facing collective bargaining

Transparency with employees/ Members.
Unions are becoming quite savvy with communicating with their current employees and
potential members. Union leaders are increasingly focusing on being more transparent with
their members during the bargaining process. They continue to build strong communications
networks centred on social media and other online platforms, with development of mobile apps
and company-specific websites, Facebook pages, and Twitter accounts.

To stay ahead of and counter union communications, employers facing a union organizing
campaign or in the midst of negotiating a contract should institute and invest in more robust
communication strategies with their employees as well. Social media and other online
communications boards are essential in getting the company’s message out, especially to
millennials and other employee demographics who will seek their information from such
sources.

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New Technology in the workplace.
As more technology comes into the workplace and robots threaten to replace workers,
collective bargaining will likely face these issues head on. Just as outsourcing used to be (and
in many cases, still is) a sore spot for unions, workplace automation is a similar threat to jobs
and future expansion.

One example involves the Teamsters who recognize that autonomous driving vehicles are
becoming a reality. The Teamsters are urging lawmakers to prioritize workers and safety when
crafting legislation and rules regarding autonomous vehicles. Their concerns likely spill over
into their contract negotiations as well.
As workplace technology accelerates, discussions of the use of such technology will likely
become key in any bargaining where robots and automation are a possibility. Anticipating that
topic, and the potential impact on workers, opens the door for employers to bargain for potential
gains and/or trade-offs in their favour when the union opposes or seeks to limit autonomous
technology.

Favourability of Unions on the Rise

Employers should be aware of this rising trend, especially when communicating with
employees during an organizing or bargaining campaign. Opposing and criticizing unions too
strongly could backfire so communications and strategies should be formulated to focus on
issues, rather than the institution of unions and union membership itself.

Responding to organizing campaigns and preparing for collective bargaining is always a

challenge but thinking ahead about these top five issues, and investing in some preventative
training and education for managers, can help you manage the process and achieve a favourable
outcome.

Inefficient negotiation process

Despite the advent of democracy and the positive legislative changes that it brought to this
country is so far as collective bargaining is concerned, it’s been business as usual on the
collective bargaining front. Parties have continued to negotiate as they had always done -
wielding power and holding position - playing out a Sisyphus-like ritual each time they
negotiate with no (or very little) motivation to reflect and learn from past experience. This has
resulted in inefficient negotiation processes that require intense effort and resources, kin to
pushing a square wheel. The problem with pushing a square wheel is that one eventually
develops the capabilities to get it rolling and then sees no reason to change or improve. Some
enlightened parties have, however, adopted more contemporary and progressive negotiation
practices; and have predictably reaped the rewards of that effort.

Over-reliance on statutory dispute resolution.

The challenge of ineffective negotiation processes has led to an over-reliance by parties on
statutory dispute resolution. Collective bargaining processes, more often than not, are a race to
a dispute being declared and then passing the responsibility of achieving an agreement to the
statutory dispute resolution body.

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And, on those rare occasions when the dispute resolution body fails to broker an agreement
between the parties, it is the dispute resolution body that unfairly becomes the target of criticism
as opposed to the parties that actually own the outcome of their interaction. Statutory dispute
resolution has produced sterling results but with an unintended consequence of contributing to
a diminished capacity by parties to actually negotiate. It is in the interest of parties engaging in
collective bargaining to take cognizance of these matters (at least those that are within their
control) and to make the necessary changes for a better bargaining experience.

Collective Bargaining Agreement

The parties to a collective bargaining agreement shall reduce the agreement to writing and both
shall execute it. A collective bargaining agreement shall contain provisions that:

a) Provide for a grievance procedure that culminates with final and binding arbitration of
all disputes arising over the interpretation or application of the collective bargaining
agreement and that is valid and enforceable under its terms when entered into in
accordance with this chapter
b) Require processing of disciplinary actions or terminations of employment of employees
covered by the collective bargaining agreement entirely under the procedures of the
collective bargaining agreement. Any employee, when fully reinstated, shall be
guaranteed all employee rights and benefits, including back pay, sick leave, vacation
accrual, and retirement and federal old age, survivors, and disability insurance act
credits, but without pay back for any period of suspension.
c) If a collective bargaining agreement between an employer and an exclusive bargaining
representative is concluded after the termination date of the previous collective
bargaining agreement between the employer and an employee organization
representing the same bargaining units, the effective date of the collective bargaining
agreement may be the day after the termination of the previous collective bargaining
agreement, and all benefits included in the new collective bargaining agreement,
including wage or salary increases, may accrue beginning with that effective date.
d) If a collective bargaining agreement between an employer and an exclusive bargaining
representative is concluded after the termination date of the previous collective
bargaining agreement between the employer and the exclusive bargaining
representative representing different bargaining units, the effective date of the
collective bargaining agreement may be the day after the termination date of whichever
previous collective bargaining agreement covering one or more of the units terminated
first, and all benefits included in the new collective bargaining agreement, including
wage or salary increases, may accrue beginning with that effective date.

Conclusion
This learning outcome covered the following the definition, analysing the types, discussion of
the contents, identification of the condition for the success and the challenges of Collective
Bargaining as per the Standard Operating Procedures and the contents of collective bargaining
agreement.

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Further Reading

Top Five Ongoing Challenges for Collective Bargaining and Organizing By Steve Gutierrez

8.3.3.3 Self-Assessment

Written Assessment
1. Employers of Energy Sacco have been having a dispute with the trade union on a certain
agreement regarding the welfare of their employees. It was also noted that a collective
bargaining agreement was not followed and so they decided to take legal action. The judge
heard the case and is supposed to grant an interim injunction. Which criteria might a judge
take into account in deciding whether to grant an interim injunction against a trade union
from taking industrial action?
A. Whether there is a serious question to be tried and where the balance of convenience
lies.
B. Whether the trade union puts up a good case.
C. Whether the issue is serious enough.
D. How well supported the industrial action is.
2. Recruiters Company want to open up a trade union that will be representing different
employees from different companies and institutions. But before that, they have to follow
a legal process in the certification of the trade union. Which official, among listed below,
created by statute, is responsible for certifying that trade unions are independent?
A. Home Secretary
B. Membership and Independence Officer
C. Certification Officer
D. Chief Secretary at the Department of Business Regulation
3. Consider the following situation: Employer A decides to hire human resource managers
who set up company complaint procedures and new pay systems. This situation identifies
which of the following factors as a cause of the decline in union membership.

A. Structural changes in the economy and the labour force.

B. Employer substitution through personnel practices.
C. Internal union affairs and actions.
D. American worker ideology.
E. Union avoidance through employer practices.

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4. Wambui has been going through a hard time with her current employer. She was advised to
join a trade union and air her grievances. Unfortunately, her employer got summoned by the
trade union representative officials. Under what occasions are employers not required to
provide information to employee representative within the context of collective bargaining?

A. They do not have to provide any information which will hamper them in
negotiations.
B. They are not required to provide information in a number of specified reasons such
as if it is information that relates specifically to an individual unless he or she has
consented to its disclosure.
C. They have to be very open or the negotiations will not be conducted between equal
parties.
D. They do not have to provide information which would help the trade union case in
the negotiations.
5. You being a consultant to various companies in Kenya, how can you advise companies to
uphold the right to collective bargaining?

Case study
In a multinational company (MNC) the collective bargaining process was going on. The union
puts up its demands to the management. But the management also had some issues to place
before the unions. They said that they would consider the demands of the union only if the
union is ready to make some compromise. The MNC was catering to the markets of USA and
Europe. At the same time, they had 50% dependence on domestic market. But due to Global
Financial Crisis, the rest 50% export orders were affected. From 50%, it has gone down to
10%, a reduction of 40%. This is a grave situation indeed. The company may not survive only
with the domestic market. So, the management made a request to the Union that they are ready
to listen to the demands of the Union, only when they fulfil either of the following conditions:
 Reduce manpower by 20 % or
 Reduce wages to meet the slack in demand.
Question: What should be response of the Union to such demands? Can you suggest some
alternative and fruitful solution to this demand?

8.3.3.4 Tools, Equipment, Supplies and Materials

 Polices, guidelines and regulations Strategic plans

 Career progression manuals
 Organization structure, policies and procedures
 Contracts and Agreements

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8.3.3.5 References

Armstrong, M. (2012). Armstrong’s Handbook of Human Resource Management

Practice. London: Kogan Page.

Business Jargons. (n.d.). Types of Collective Bargaining. Retrieved from Types of Collective
Bargaining

DeCenzo, D. A., & Stephen, P. R. (2010). Collective Bargaining. In S. R. David A

DeCenzo, Fundamentals of Human Resource Management (pp. 350-353). United
States of America: John Wiley & Sons Inc.

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8.3.4 Learning Outcome No 3: Carry out career progression in line with career guidelines
8.3.4.1 Learning Activities

Learning Outcome No3: Carry out career progression in line with career guidelines
Learning Activities Special Instructions

8.1. Identification of establishment in the organization. Observation

8.2. Identification of qualifications based on career progression Projects
as per the career progression manual. Review of portfolios
8.3. Advertisement of vacancies
8.4. Carrying out recruitment and promotion process

8.3.4.2 Information Sheet No8 /LO3: Carry out career progression in line with career
guidelines

Introduction
This learning outcome covers the career progression path in an organization in line with the
already established career progression manual as well as the career guidelines.

Definition of key terms

Career Recruitment: This is the attraction and selection of qualified, competent and right fit
candidates to take up vacant positions within an organization.

Promotion: This is the addition of roles which carries with it added perks for good
performance based off the appraisal process of one’s initial role held at the organization. For
example, after a successful appraisal process, the Human Resource Assistant can be promoted
to be the Human Resource Officer.

Content/Procedures/Methods/Illustrations
Career progression
Meaning of career progression: This is the movement of an individual from one role to
another either within the same organization they work for or for a different organization. Career
progression means that an individual moves from a junior role to a senior one with tie which
happens as a result of hard work, increased work experience and gaining of new skills and
competencies.

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Merits/Benefits of career planning/progression
 Comes with better remuneration packages for the employee
 Can act as a motivating factor for employees as it signifies growth
 Provides vacancies in the lower level positions for entry level entrants into the
organization.
 Good reputation for employers known to support career progression so they can attract
a qualified pool of candidates.
 Gain competencies-helps employees plan for trainings and competency development
 Decision making-assists employees make decisions as pertains their future in their
preferred careers
 Goal setting-focuses individuals and allows them to lay down personal goals and
objectives
 It also helps in maintaining a good work-life balance.
 Reduces stress and confusion as to what the future holds.

Demerits of career planning/Progression

 Accessibility. Career development programs can be costly if employees from multiple
locations have to meet at a central location.
 Loss of Productivity. When your employees are participating in a career development
program, they aren't working and this results in lost man power hours.
 Desirability-not all employees maybe interested in the programs the organization puts
in place.
 Time Frame: These programs are usually long term and thus are difficult to implement
and follow through with.
 Problem Solving: While career development programs are helpful, they do not solve all
the problems at the work place.

Identification of establishment in the organization.

This is the process of coming up with a career progression manual for use by the organization
so that there are laid down processes and rules as regarding how career progression will be
done as well as promotions so that equality and fairness is observed and the process is not open
to manipulation and biasness. Consultations and benchmarking with industry good practices
should be put in place so that the organization comes up with a good policy.

Identification of qualifications based on career progression

Qualifications are an important aspect of determining one’s career progression path and thus
for every role within the organization, there should be minimum qualifications set that guide
career progression and promotions. This enables individuals to align themselves with the
necessary qualifications for their chosen career path.

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Advertisement of vacancies
After the job description and people specification requirements have been developed, the
advertising of vacancies can now be done. There are many ways of advertising so as to attract
qualified candidates. Some are traditional while other methods of advertisement are modern.

Carrying out recruitment and promotion process

After the advert has been disseminated on the most appropriate medium for the organization
and candidates have applied for the advertised jobs, a long listing is done by the officer in
charge. This involves coming up with a sizeable number of candidates from the pool of
applicants who meet the requirements of the job and people specifications. After the first
interview is one from the long list, a few candidates remain who proceed to the next stage of
the interview in a process called shortlisting. After a number of subsequent interviews whose
number depends on the seniority of the position among other factors like the organizational
policies on recruitment. After the interviewing process is done, the selected candidate is
informed and after signing of the offer letter and contract, on boarding begins. The process of
promotion begins once an appraisal process has been done successfully and it has been
determined that the employee qualifies for a more senior role handling bigger responsibilities.

Conclusion
This learning outcome covered the career progression path in an organization in line with the
already established career progression manual as well as the career guidelines.

Further Reading

1. Read more on Various mediums of advertisement of vacancies

8.3.4.3 Self-Assessment

Written Assessment
1. June is the human resource manager for a local bank in Nairobi. She has been tasked with
hiring a Junior Accountant to replace the former who left to pursue greener pastures abroad.
Help Jane decide which is the best platform to use to advertise for this role seeing that she
is looking for young graduates who have just cleared their campus education.
A. Newspaper
B. Radio
C. Social media platforms e.g. LinkedIn
D. Magazines

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2. As the Recruitment Manager for organization X, what is not an advantage of using social
media to advertise for vacancies within your organization?
A. Wide reach
B. Easy for candidates to apply
C. Easier for hiring manager to sort through applications
D. Uses a lot of money
3. Career progression while a good thing for an organization to encourage can also lead to
unforeseen negative outcomes for the organization and its employees as it can lead to cut
throat competition for limited growth opportunities thus causing lots of conflicts. What
would be the best way to minimize the occurrence of conflict?
A. Do away with the career progression policy.
B. Allow supervisor only to decide who gets promoted.
C. Ensure policy is thoroughly detailed on procedure for promotions
D. Do nothing and wait for conflict to emerge and solve it then
4. In an organizational set up, under whose docket would the development and execution of
the career progression policy fall under?
A. Chief Executive Officer
B. Finance Manager
C. Human Resource Manager
D. Marketing Lead
5. List the advantages of career progression
6. Outline the difference between job descriptions and people specifications
7. Seeing that recruitment in an integral part of the company’s talent pool as this is how the
company is able to employ talented and competent employees to drive its organizational
goals and objectives, describe how a hiring manager should prepare for interviews also
detailing how a job seeker who has been invited for an interview should prepare for the
same in order to be successful.

Practical Question
Janet is looking to create a career progression manual for the organizations he works for. She
intends to do this so as to resolve all the favouritism that she has observed in the organization
when it comes to promotions. Create a sample manual that Janet can borrow from

8.3.4.4 Tools, Equipment, Supplies and Materials

 Polices, guidelines and regulations Strategic plans

 Career progression manuals
 Organization structure, policies and procedures
 Contracts and Agreements

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8.3.4.5 References

“Career Development Plan: Create your own in seven steps” Totempool 2020

Cheruto, T. (2005). A survey of the use of human resource information systems in the banking
sector in Nairobi. (Unpublished MBA project). University of Nairobi, Nairobi

Makembo, M. & Oluoch, O., (2014), effect of human resource information system on the
quality of human resource functions in telecommunication industry in kenya at
Safaricom k ltd. International Journal of Social Sciences and Information Technology
ISSN 2412-0294 Vol IV Issue IV. Jomo Kenyatta University of Agriculture and
Technology. Juja.

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8.3.5 Learning Outcome No 4: Engage trade unions in negotiations
8.3.5.1 Learning Activities

Learning Outcome No4: Engage trade unions in negotiations

Learning Activities Special Instructions

4.1 Identification of unionizable employees in Unions in line with Observation

SOPs. Projects
4.2 Identification of legislations and regulations governing Review of portfolios
engagement with trade unions.
4.3 Identification of purposes and objectives of negotiations.
4.4 Preparation of proposals and offers by the negotiating parties.
4.5 Preparation of the agreement reached, and signing of the
contract.
4.6 Negotiations and signing of the Collective Bargaining
Agreements as per the SOPs.

8.3.5.2 Information Sheet No8/LO4: Engage trade unions in negotiations

Introduction
This learning outcome covers how to foster a good working relationship between the
employer and trade unions. It also covers how to go about negotiation of collective
bargaining agreements.

Definition of key terms

Negotiations: Negotiation is a method by which individuals arrive at agreements for
contentious issues. It is a process by which compromise or agreement is reached while avoiding
escalation of arguments and disputes. In this chapter, negotiation will refer to the process of
settling contentious issues by the employer and the unions which represent the interests of
employees.

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Content/Procedures/Methods/Illustrations
Trade Unions
Meaning of trade unions: This is a membership body recognized by law that draws
membership from various professionals across diverse industry sectors with the aim of
bargaining for their best interests with their employers.

Importance of trade unions to the employer

 Act as a check and balance encouraging employers to provide basic minimum wage to
employees.
 Act as catalyst for organizations to prioritize employee working conditions.
 Help firms follow the employment act as pertains the employer employee relationship.
 Reduction of employee turnover
 Improves worker productivity
 Ensure health and safety of workers is attended to thus boosting morale.

Importance of trace union to the employees

 Union provides employees with an opportunity to achieve their goals and objectives with
the support of fellow colleagues.
 Unions bargain for minimum wages for their members thus securing the economic
interests of workers.
 In addition to minimum wages, unions help get social amenities for their members
provided by the employer.
 In developed nations, unions also provide in times of economic distress cash reliefs to
their members to enable them meet their basic needs
 Act as instruments to assist in settlement of employment disputes between employers
and employees.
 Trade unions encourage the negotiation of disputes in a peaceful manner.
 Trade union imparts self-confidence to the workers and they feel that they are an
important part of the organization.
 They provide catalysts to agitate for worker promotions based on job cadres and
experience.
 Workers get an opportunity to participate in management decisions that affect them
directly.

Impact of trade unions in economic, social and political life in Kenya

Economic impact
 Encourage minimum wage payment thus increase disposable income to workers thus
increasing their purchasing power in the economy.
 Provide employment to labour union officials thus decreasing unemployment nationally.
 Since unions encourage negotiations to reach agreements on contentious matters, this is
fosters an environment of peace that encourages economic growth.

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Social Impact
 Creates a sense of belonging among the members
 Encourages organizations to be socially responsible by providing better working
conditions for their employees.
 Encourages firms to participate in social justice causes as this act as a bargaining chip so
that the union can relent on their demands during CBA negotiations.

Political impact
It can be argued that trade unions in Kenya have turned into political movement which
fundamentally is not a bad thing but in the Kenyan context it has evolved to become a
questionable way of doing things. This is so because the unions play to the tune of politicians
and largely the big business owners who fund the politicians and thus instead of the union
doing their core mandate which is agitating for better pay and working conditions for their
members, they have turned into campaign tools for the politicians thus leaving the workers
exposed with no defender.

The structure of trade union movement in Kenya

The trade union movement in Kenya emerged out of the challenges the colonial rule
presented to the workers in Kenya.
In 1935 Makhan Singh at the request of Asians workers set up the Indian Trade Union which
he soon broadened to embrace all races and trades. The union eventually became the Labour
Trade Union of Kenya. By the late 1940s Kubai had set up the Transport and Allied Workers
Union (TAWU) and Kaggia the Clerks and Commercial Workers Union. By 1950, the active
collaboration between Kubai and Singh led to the creation of the East African Trade Union
Congress with Makhan Singh as secretary-general and Kubai as President. By 1952 a number
of other African trade unions were set up. Aggrey Minya got some of them to form the Kenya
Federation of Registered Trade Unions with himself as secretary general. But with the
declaration of a state of emergency in Kenya by the colonial government in October 1952, the
KFRTU did not make much of an impression on the labour front. Many trade union leaders
were detained allegedly because they were associated with the Mau Mau, Kubai and Kaggia
being among them. It was into this void that Thomas Joseph Mboya stepped. He was secretary-
general of the Kenya Local Government Workers Union, one of the KFRTU affiliate unions,
which he had built up from a simple staff association when he worked as a health inspector for
the Nairobi City Council. In 1953 he replaced Minya as KFRTU secretary general and in 1955
the name of the trade union was changed to the Kenya Federation of Labour (KFL). With nearly
all the politicians detained, the KFL and its leaders now took on the forefront of the struggle
for political freedom and workers’ rights. The Central Organization of Trade Unions, COTU
(K) is the National Trade Union Centre in Kenya. COTU (K) was founded in 1965 upon
dissolution of the Kenya Federation of Labour and the African Workers’ Congress (KFL –
AWC). COTU (K) is registered and operates within the provisions of the Labour Relations Act,
2007 of the Laws of Kenya. Of the country’s 42 trade unions, 36 belong to COTU and they
represent more than 1.5 million workers both in the public and private sectors of the economy.

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Advantages and challenges facing trade union movement in Kenya
Advantages
 Improve the economic and social conditions of all workers in all parts of Kenya.
 Assist in the complete organization of all workers in the trade union movement.
 Organize the structure and spheres of influence and amalgamation of trade unions
affiliated to COTU (K).
 Assist in settling disputes between members of trade unions and their employers or
between the trade unions and their members or employees of one union and employees
of another union, or between two or more trade unions.
 Encourage the principles of the development and maintenance of good relations
between employees and employers.
 Secure adequate and effective representation in bodies dealing with labour and
employment policies and legislation.
Challenges
 Limited financial and human resources for the operations of the unions
 Weak implementation of the labour laws as well as inefficient labour institutions. So
many cases remained unresolved in the Employment and Labour Relations Court.
 Disunity, splits and rivalry among trade unions and trade union leaders breaking the
solidarity spirit
 Anti- trade union Governance. The government has been slow in its dispute resolution
processes as well as the enhancement of Alternative Dispute Resolution mechanisms.
 Weak Trade union membership. As a result of outsourcing many trade unions lose their
members. Moreover, several multinational corporations as well as private sector
employers are against unionization of their employees

Legislations and regulations governing engagement with trade unions

Section 49 of The Labour Relations Act, 2007 provides for agency fees payment to a
trade union by an employer after effecting deductions from an employee’s salary. The process
of agency fee deductions begins when management is approached by the trade union to submit
names of unionizable employees to them in order to identify the employees who have been
employed under terms and conditions of a prevailing collective bargaining agreement between
the trade union and the employer.
Agency fees are paid to a trade union that has a registered recognition agreement with
an employer in the industrial court and has requested the minister for labour requiring
the employer bound by the collective agreement to deduct agency fees from the wages
of unionizable employees who are not members of the trade union but are employed under
terms and conditions of the collective bargaining agreement. The rate of agency fees must not
be higher than the normal union subscription fees deducted from union members through a
check off system.

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Negotiations
 Purposes of negotiations: Negotiations are there to help two warring factions reach an
amicable solution that is acceptable to both sides.
 Objectives of negotiations
 Certainty: This is the knowledge that the employer employee relationship is governed and
neither party can alter the terms to the contract without the others consent
 The best deal: Negotiations are meant to achieve a win-win outcome for either parties so
that none feels manipulated or misused.
 Avoid strikes/go slows: CBA negotiations are designed to eliminate the threat of strikes
and worker go slows as they protest for better pay and working conditions.
 Creation of a long-term relationship between the parties to ease future working
relationships.
 Obey the law of the land that dictates that negotiations have to be held before a CBA can
be signed off and deposited with the court.

Participation and joint consultation

Participation refers to the parties involved in the CBA negotiations. In most instances, the
parties involved are the employer representatives who may include an advocate and the union
representatives who represent the interest of the employees of the organization. Joint
consultation is the process of decision making in an organization where the representatives of
the organization consult with the representatives of the employees before major decisions
directly affecting workers are arrived at.

Preparation of proposals and offers by the negotiating parties.

This happens after negotiations have been done but are not yet complete. This is where both
parties draft offers and proposals for further negotiations based on the previous negotiation
meeting agreements, disagreements and pending areas of concern to be addressed in upcoming
negotiation meetings.

Preparation of the agreement reached, and signing of the contract.

Once an agreement has been reached on all areas of interest by both parties, the employer goes
ahead to draft the conclusions of the final negotiation meeting. At this point, unless something
major is discovered that had been earlier on been overlooked, the final draft of the CBA is
drafted and shared with the union representatives. This is done so that they can read through
and agree that the contents of the document tally with what was discussed and agreed. After
this, the CBA is headed to the final stage of the negotiations which is signing off by both parties
to the agreement.

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Negotiations and signing of the Collective Bargaining Agreements.
After the negotiation steps as outlined below are done, the parties then sign off the CBA which
is then registered with the Employment Labour and Relations Court as it is the enforcer of
CBA’s and it solves disputes arising out of non-implementation of the CBA.
 Preparation
 Discussion
 Clarification of goals
 Negotiate towards a Win-Win outcome
 Agreement
 Implementation of a course of action

Conclusion
This learning outcome covered labour relations primarily between an employer and a union in
which employees are members to represent their interests collectively.

Further Reading

Read more on Registration of a trade union in Kenya and Employment and Labour Relations
Court

8.3.5.3 Self-Assessment

Written Assessment
1. As the head of HR in your organization, what would be the best way to handle a shop
steward who is not being productive at work but the organization fears firing him as the
union will likely go to court and sue the company?
A. Follow due process and terminate the shop steward
B. Ignore his non performance
C. Terminate him without following due process
D. Get another employee to talk to shop steward
2. The organization you work for has received communication from a trade union that intends
to represent its employees. The management of the organization feel like there is no need
to have unionized employees in their organization. As the officer concerned, what would
you advice management accrues to the organization as a result of having unionized
employees?
A. Incentive to pay workers minimum wages
B. Reduced staff costs
C. No benefits
D. Reduced taxes

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3. In a negotiation, there are many outcomes. Which among the ones listed below is not an
outcome of a negotiation?
A. Win-Win
B. Lose-Lose
C. Win-Lose
D. Peace
4. Some semi-skilled workers at a factory near your school have approached you to help them
understand the importance of join a trade union they have heard about. Which among the
following would you tell them is a financial benefit of joining the union?

A. Better working conditions

B. Union gives its members money
C. Improved wages on top of minimum wages
D. Gives one a sense of belonging
5. What are some of the benefits of belonging to a trade union as an employee of company?
6. What are some of the roles of the Employment and Labour Relations Court?

7. As the Head of Human Resources for your organization, it is expected that one of your roles
is labour relations. There is an upcoming CBA negotiation with the union that represents
employees. What are some of the ways you would prepare for the negotiation and how would
you ensure the negotiations are successful?

Practical Question/Case study

Candidate is required to pick a ruling made by the Employment & Labour Relations court in
the year 2019 where the employer lost the case and identify loopholes the employer ignored
that led to them losing the case and being ordered to compensate the ex-employee.

8.3.5.4 Tools, Equipment, Supplies and Materials

 Internet connected laptop/Desktop

 Pen
 Paper
 Polices, guidelines and regulations Strategic plans.
 Salary and benefits manual.
 Organization structure, policies and procedures.
 Contracts and Agreements.

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8.3.5.5 References

Re-Constituted Industrial Court of Kenya and Role of the Social Partners- J.Rika Tom Mboya
Labour College, Kisumu 28th September 2012.

Business Jargons. (n.d.). Types of Collective Bargaining. Retrieved from Types of Collective
Bargaining

DeCenzo, D. A., & Stephen, P. R. (2010). Collective Bargaining. In S. R. David A

DeCenzo, Fundamentals of Human Resource Management (pp. 350-353). United
States of America: John Wiley & Sons Inc.

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8.3.6 Learning Outcome No 5: Enforce compliance with stipulated Occupational Health
and Safety (OHS) standards
8.3.6.1 Learning Activities

Learning Outcome No5: Enforce compliance with stipulated Occupational Health and
Safety (OHS) standards

Learning Activities Special Instructions

5.1. Identification of provision in legislations and regulation Observation

and conventions. Projects
5.2. Making budgetary allocations Review of portfolios
5.3. Procurement and issuing
5.4. Formation of relevant committees (human resource
management advisory committee, performance appraisal
committee, safety and health committee).
5.5. Conducting health and safety training.
5.6. Carrying out safety audit and doing reports

8.3.6.2 Information Sheet No8/LO5: Enforce compliance with stipulated Occupational

Health and Safety (OHS) standards

Introduction
This learning outcome covers the enforcement of compliance with stipulated occupational
health and safety standards. It provides the learning activities of identification of provision in
legislations and conventions, making budgetary allocations as per SOPs, procurement and
issuing as per SOPs, formation of relevant committees (human resource management advisory
committee, performance appraisal committee, safety and health committee), conducting health
and safety training, and carrying out safety audit and report doing as per SOPs. This will lead
to a conclusion for the learning outcome for better recap and understanding.

Definition of key terms

Occupational Health and Safety (OHS): This refers to the multidisciplinary field that is
concerned with the welfare and the wellbeing of the employees in the various fields of work.

Safety Audit: This is a term used to imply the general activity through which a workplace
facility gathers information about the place of work and evaluate the level of risks that threaten
the wellbeing of the people working in that place.

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Health and safety training: This refers to the offering of courses and learning to help an
organization in implementing and integrating the practices of occupational health and safety.

Content/Procedures/Methods/Illustrations
Identification of provision in legislations and regulation and conventions.
The working principle set by the International Labour Organization is that every employee
must be protected from any diseases of injury that can be caused at the workplace. However,
this has not been implemented since every year approximately 1.78 million individuals die
from work-related injuries and about 2.4 million get workplace related illnesses. This not only
leads to economic costs but also the colossal of the businesses from the negativity deduced
from the deaths and injuries. It is through this issues that workdays are lost, production
interrupted, healthcare expenditures rising and the compensations lost.

Procedure of identifying provision in legislations and regulation and conventions

i. Identification of the facilities that the legislation and regulations and conventions can
be applicable to.
ii. Determination of the field of working that the facilities of working belong to.
iii. Segregation of the facilities and allocation of the provision legislations, regulations and
conventions that can be applied.
iv. Studying of the regulations, legislations and conventions that can be applied to each
particular field and the matching the regulations.
v. Providing for the legislations, regulations and conventions identified to the associated
to the particular field.

Methods of identifying provision in legislations and regulation and conventions

 Scrutiny of key instruments of occupational safety and health – Such instruments
include health and safety conventions and other instruments that spell occupational health
and can guided in the identification of the provisions.
 Determination of particular health and safety branches with each economic activity –
Various activities have various health and safety branches which spell the provisions of
legislation and regulations thus can be a method to identify the provisions.
 Risk analysis method: The analysis of specific risks involved at the workplace can lead to
effectively identifying the provisions that can be put in the legislations and regulations of
workplace health.
Importance of identifying provision in legislations and regulation and conventions

 It helps to direct employers on what do to in their particular fields of operations.

 It reduces the risk of workplace health and safety prosecution as the rules are identified
and known.
 It brings good business sense with legislation and regulation.
 Costs are reduced due to reduced lawsuits and health spending on patients.

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Making budgetary allocations as per SOPs.
There is need for a budget to be put in place for the health and safety system to work efficiently
in the workplace. This is because financial planning is a critical element in any programme at
the workplace. It is the work of the employer to set aside the finances and take the ultimate
legal responsibility to come up with a plan on how the finances will be allocated to address the
occupational health issues. With the requirement that every employer has to provide a safe
working environment to the employees, the provision of a budget to direct finances to the issue
is paramount.

Procedure of making budgetary allocations as per SOPs

i. Defining the safety budget as per the organizational requirements.
ii. Identifying the essential expenses and elements of workplace health and safety which
will be constituted in the budget.
iii. Establishing a debt reduction plan by organizing the elements in terms of their
likelihood of occurrence and the magnitude of impact they can create when they occur.
iv. Identifying the goals, targets and plans of the workplace health and safety.
v. Commit the spending by planning on the budget with proper appropriation of the
finances to the high-risk workplace safety elements considering the health and safety
targets and goals.
vi. Provision for contingencies in the budget and aligning of the budget resources to the
necessary docket.

Methods and types of making budgetary allocations as per SOPs

 Incremental budgeting method: This is the method in which the budget’s actual figures
for the previous year are added or subtracted as a percentage and used to formulate the
present year’s budget. The allocation is made with the concept that all factors will be held
constant and the organization spend almost a similar amount on organizational health and
safety.
 Activity-based budgeting: This is a budgeting method in which the inputs determine the
finances to be allocated to the particular element. It therefore identifies the elements
involved in the workplace health and safety budget and allocates the necessary costs.
 Value proposition budgeting method: This is the budgeting method which seeks to
include the rationale of allocating finances to the workplace health and safety and the value
that can be deduced by the practice. It then gauges the merits and demerits of such a practice
and takes its position regarding the matter.
 Zero-based budgeting: It is a budgeting method which assumes that all elements are
assumed and therefore started from scratch to build. This allocates new costs to the
budgeting elements according to its absolute essence.

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Importance of making budgetary allocations as per SOPs
 It will help the organization to keep an eye on the cost of organizational health and safety.
 It will ensure that the organization does not unnecessarily spend finances on organizational
health and safety elements which do not matter.
 It helps the organization to prepare for emergencies that can occur regarding workplace
health and safety.
 Bad habits of spending on the workplace health and safety can be identified and eliminated
with budgeting.
 Workplace safety and health is restored with the available finances as budgeted whenever
any injury happens.

Procurement and issuing as per SOPs

It is a legal requirement for every organization to assess their environment and purchase things
that they see necessary in the working process of the organization to enhance workplace health
and safety. It ensures that the organization stands on a ground of compliance since the law does
not give in to any defence for omission of a practice that is stipulated and was not followed. It
usually attracts fines if the process was not followed. The procurement then as to purchase the
necessary equipment, material, and services which will help the organization to deal with any
issues of workplace health and safety.

Procedure for procurement and issuing as per SOPs

i. Identification of the hazards associated with the health and safety of the particular
workplace.
ii. Evaluate the acceptability of the hazards with the legal requirements of workplace
health and safety.
iii. Apply document controls to eliminate and isolate those hazards that will not be
acceptable.
iv. Determine the materials, equipment and services that will be necessary for the
acceptable hazards in the workplace health and safety.
v. Identify the needs and approvals of the materials and equipment and services in the
organization to determine the quantity to be purchased.
vi. Order the materials, equipment and services that are needed to deal with the workplace
health and safety.
vii. Pay for the materials, equipment and services in accordance to the intervals and prices
agreed with the supplier.

Methods of procurement and issuing as per SOPs

a) International shopping: This is the method where the organization can internationally
identify and purchase the materials, equipment and services needed to address
occupational health and safety concerns. The international suppliers can present their
prices and the methods of delivery of the materials, equipment and services for the
organization. This method is much more of importation.

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 b) Local shopping: This is the procurement method where the organization can remotely
purchase the materials, equipment and services needed to address the issues of
workplace health and safety. It is like direct buying from the retailers and wholesalers
within the country of operation of the organization.
c) Direct contracting: This is the procurement method where the organization gives
another organization the mandate to buy the materials, equipment and services needed
in the occupational health and safety. The organization that purchases the materials,
equipment and services is not the consumer but buys them on behalf of the parent
organization. This is done because the procuring organization might be having more
expertise in procurement than the consumer organization.

Importance of procurement and issuing as per SOPs

 It helps to control spending on occupational health and safety.
 It prevents corruption adding to the issues of occupational health and safety.
 It protects the organization from consuming fake brands of materials, equipment and
services for workplace health and safety.

Formation of relevant committees

Human resource management advisory committee.

The human resources are important in providing the services to employees, appropriating the
resources within the organization as well as assisting the current, future and retired employees.
The Human Resources Advisory Committee comes in to evaluate the undertakings of the HRM
and provide feedback to them to assist in the refinement of the programs and services.

Procedure of creating Human resource management advisory committee

i. Identify the issues of concern that the committee will evaluate.
ii. Determine the scope of operation of the committee.
iii. Develop the model of working of the committee.
iv. Determine the members to be constituted in the committee.
v. Organize and set the committee into operation.

Roles and responsibilities of the committee

 Identifying issues concerned with the HRM actions and responses.
 Evaluating the responses and actions of HRM
 Help in the development of ongoing review of strategic plans of HRM
 Present sound advice to the HRM regarding its issues.

Members in the committee

 The vice chair of the human resources
 Representatives from various dockets of human resources.

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Performance appraisal committee.
The functions of the human resources are not left unmanned. Therefore, to gauge the standard
of performance and the continuation of the services is important towards better working of the
human resources.

Procedure for creating the performance appraisal committee.

i. Identify the need for the committee.

ii. Determine the committee’s scope of operation.
iii. Formulate the committee’s working model
iv. Determine the members to be constituted.
v. Organize and set the committee into action.

Members of the performance appraisal committee.

 Performance manager
 Operations manager
 Members from the various organizational departments.
 Quality assurance individuals in the organization

Safety and health committee.

This is a committee that provides a working forum for both the employees and the
organizational management to work on and alleviate the health and safety issues that might be
existing in the organization. If an effective committee is in place, it can help create significant
awareness in the organization regarding health and safety issues, develop working strategies
for occupational health and safety, and subsequently reduce or prevent injury and illnesses that
arise in the workplace.

Procedure of formation of the safety and health committee.

i. Establish procedures to be used in the inspection reports.

ii. Identify the scope of committee working
iii. Determine the representatives to be involved in the committees
iv. Evaluate the equability of representation of the employees and managers
v. Organize the group and set it to working.

Roles and importance of the Safety and health committee.

 Improves conditions of the job

 Gives the best forum for employees and the management to solve workplace health and
safety issues.
 Can effectively be used to reduce and eliminate workplace health and safety issues.
 Better strategies for workplace safety and health can be developed by the committee.

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Members of the committee

 Representative from the management

 Supervisors from each organizational docket
 Training personnel
 Representatives from the employees

Importance of creating the relevant committees

i. They help in organizing workplace health and safety issues.

ii. They help in controlling the relevant body concerned with workplace health and safety.
iii. They strategically help in reducing issues of workplace health and safety.
iv. Committees ensure that the right thing is done at the right time this discipline.

Conducting health and safety training

Workplace health and safety is an aspect to be taken seriously because of the way it relates to
the employees and productivity. Safety training is very critical not only to new employees but
to all employees since they get to be imparted with the knowledge on how to handle risks of
safety at the workplace and expose them to the risks that might be unfamiliar to them but has
a potential of occurring in their organization. Workplaces are therefore required to orient their
employees on occupational health and safety for better addressing of occupational health.

Procedure for conducting health and safety training

i. Identify the needs for conducting the health and safety training
ii. Identify the desired outcomes after the health and safety training
iii. Link the outcomes with the behaviour of both employees and management.
iv. Collate the data to determine the relevant training aspects.
v. Pinpoint on the core trainable competencies for the workplace health and safety.
vi. Evaluate the core trainable competencies
vii. Seek to understand the gaps that are needed to be filled during the training.
viii. Identify and prioritize the modes of training for the workplace health and safety.
ix. Undertake the cost-benefit analysis of the training
x. Implement the training and continuously evaluate the success.

Methods of conducting health and safety training

a) On job training method: This is the method in which the employees are trained while at
the workplace. It gives them a practical approach to the issues of workplace health and
safety as well as maintaining production since the employees work alongside the training.
b) Classroom-based method: This is the method that adopts the lecturer-student approach in
training the employees about workplace health and safety. The approach takes the
employees away from the work and focuses on training them on addressing the issues of
workplace health. It is effective but reduces organizational production.

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c) Online learning method: The employees are trained on the internet platforms on how to
address the issues of workplace health and safety. The method can be applied alongside
employee working.
d) Conferences: This is a method where the employees are taken to seminars where they are
taught on how to address workplace health and safety. Such seminars are conducted by
professionals in workplace health and safety thus guarantee expert knowledge to the
employees.

Importance of conducting health and safety training

 It enables the organization to be compliant with the law which requires that employees
must be trained.
 It prepares employees for risks that can be found in the workplace.
 It increases the working efficiency as employees work with caution.
 It reduces costs of treating employees and costs associated with loss of workdays.
 A safe company culture is created courtesy of workplace health and safety training.
It becomes all a gain to the company due to an informed workforce and compliances.

Carrying out safety audit and doing reports

Health and safety audit is necessary in the improvement of occupational health and safety. The
Occupational Health and Safety Act requires that every workplace occupier has to do a
thorough check on the workplace at least once annually. A report should be compiled and
issued to the relevant departments of the organization for action. Such a report contains
prescribed particulars that the workplace needs to address in order to remain safe for the
occupiers.

Procedure of carrying out safety audit and doing reports

i. Identify the risks and their levels within the workplace.
ii. Determine the scope and objectives of the audit.
iii. Identify the strengths and weaknesses within the safety procedures and conduct
iv. Assess the legality and compliance of the safety procedures available in the
organization.
v. Compare the present practices and documentations against the best legal and best
practices available.
vi. Give a recommendation on the areas to improve for the safety of the procedures.
vii. Ensure resource availability to conduct the safety audit and reports.
viii. Compile the report and a plan of action.

Methods of carrying out safety audit and doing reports

Inquiry method: This method is applied by the safety auditors asking the managerial staff and
employees regarding the workplace health and safety to gather relevant information for
analysis and recommendation.

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Observation method: The safety auditor can look at the activities engaged in within the
organization to determine the potential risks involved and give a recommendation.

Inspection method: The auditor can look at the available manuals and controls to determine
whether they are being followed to the latter and then give recommendations.

Importance of carrying out safety audit and doing reports

 It helps to identify risks at the workplace so that they can be worked on.
 It helps to identify the workplace strengths and weaknesses of addressing organizational
health and safety.
 Reveals where the workplace safety issue is and recommends the action plan for
improvement.
 Ensures that adequate resources are channelled to the occupational health and safety
procedures.
 Assists in eliminating unsafe practices and hazards in the workplace.

Conclusion
This learning outcome covered the enforcement of compliance with stipulated occupational
health and safety standards. It provides the learning activities of identification of provision in
legislations and conventions, making budgetary allocations as per SOPs, procurement and
issuing as per SOPs, formation of relevant committees (human resource management advisory
committee, performance appraisal committee, safety and health committee), conducting health
and safety training, and carrying out safety audit and report doing as per SOPs. This gave a
concrete discussion for student understanding which the key focus of the outcome is.

Further Reading

Book: Walters, D., & Nichols, T. (2007). Worker representation and workplace health and
safety. Springer.

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8.3.6.3 Self-Assessment

Written Assessment
1. Njenga is a procurement manager in a certain real estate company. Among the following
methods is not available for him to procure health and safety materials and equipment.
Which one it?
A. International shopping
B. Direct contracting
C. Local shopping
D. Over the counter
2. As workplace safety and health personnel, which is the following is not available to train
the employees on workplace safety and health?
A. On job training method
B. Common sense
C. Classroom-based method
D. Online learning method
3. Jane is the one concerned with drawing budgets for her dairy farm regarding occupational
health and safety. She wanted to prepare a budget but lacks the best method to use. Which
of the following can she apply to budget for her workplace health and safety?
A. Lean budgeting method
B. Primary budgeting method.
C. Activity-based budgeting
D. Actual budgeting method
4. There are various methods of carrying out safety audit and reporting. John is confused
which one is not according to the answers provided. Which one can you identify is not a
method so that you can assist John in singling it out?
A. Chemical testing method
B. Inquiry method
C. Observation method
D. Inspection method
5. As the head of the Human Resources in your organization how can you effectively engage
in the formation of the safety and health committee?
6. As the sole owner of a building and construction company, how can you ensure that you
are effectively making budgetary allocations as per SOPs?
7. Juliet has been a manager in the Githunguri Dairy Cooperative Society and has been
selected to carry out a safety audit and do reports together with the quality auditor. The
auditor delegates to Juliet and tells her to come up with an effective procedure on how the
safety audit will be conducted. Juliet as sought your services as a student to help her come
up with the procedure. Outline the procedure. (10 Marks)

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Practical Question
A supervisor in Tononoka Steel Company is seeking to work with the employees in
implementing a long-term training for workplace health and safety in the organization. He has
to seek approval for the training and lay down a training procedure. Explain the whole process
to him.

8.3.6.3 Tools, Equipment, Supplies and Materials

 Projector screen
 Computer
 Whiteboard
 Marker pens
 Textbooks
 Writing pads.

8.3.6.4 References

Bhattacharya, S. (2009). The impact of the ISM code on the management of occupational health
and safety in the maritime industry. Cardiff University.

Lingard, H., & Rowlinson, S. M. (2005). Occupational health and safety in construction project
management. Taylor & Francis.

Walters, D., & Nichols, T. (2007). Worker representation and workplace health and safety.
Springer.

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8.3.7 Learning Outcome No 6: Initiate employee grievances and disputes resolution
mechanism
8.3.7.1 Learning Activities

Learning Outcome No6: Initiate employee grievances and disputes resolution mechanism

Learning Activities Special Instructions

3.1. Identification of legislations, regulations, agreements, Observation

policies, guidelines and manuals. Projects
3.2. Receiving and analyzing grievances and disputes. Review of portfolios
3.3. Making recommendations to the management.
3.4. Implementation of the decisions by the management.

8.3.7.2 Information Sheet No8 /LO6: Initiate employee grievances and disputes resolution
mechanism

Introduction
This learning outcome covers the identification of legislations, regulations, agreements,
policies, guidelines and manuals. It also addresses receiving and analyzing grievances and
disputes, making recommendations to the management, and implementation of the decisions
by the management. These sub-topics will effectively cover the initiation of employee
grievances and disputes resolution mechanism for better conflict resolution among the
employees.

Definition of key terms

Grievances: In human resources, grievances refer to the complains or official statements that
employees raise especially when they have been treated unfairly or expressing their feeling of
resentment when they feel that something has been done wrongly.

Disputes: This refers to a disagreement, an argument or conflict between employees in which

one party strives to overdo the other party.

Resolution: This is the determination of a disagreement by making a firm decision on which

side to be taken. Resolution can be amicable of side-lined to one party.

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Content/Procedures/Methods/Illustrations

IDENTIFICATION OF LEGISLATIONS, REGULATIONS, AGREEMENTS,

POLICIES, GUIDELINES AND MANUALS.
The legislations, regulations and agreements that govern conflict resolution are essential that
they give the best way forward in every scenario. They give a procedural way of handing
grievances and disputes. When proper legislations and regulations are identified, they lead to
proper application and subsequent solution which is essential for organizational resolutions of
disputes.

Procedure of identification of legislations, regulations, agreements, policies, guidelines

and manuals.
i. Identify the conflict elements that exist in the workplace.
ii. Determine the applicable legislations, regulations, and guidelines.
iii. Match the applicable regulations and guidelines to the conflict elements.
iv. Determine the appropriateness of the matches developed.
v. Keep a chat to remind on the identification process.

Methods of identification of legislations, regulations, agreements, policies, guidelines and

manuals.
a) Examination of industrial purpose: The robust framework of the industry can be used to
determine the legislations and regulations that can best be applicable to the organization as
well as the industry.
b) Scope determination: The scope of the industry can help determine the applicable
legislations and regulations that can work best in the industry and the organization.
c) Examination of organizational principles: The organizational principles will tell the
legislations and regulations that are compatible with the organization thus will be ratified
and applied.
d) Scrutiny of the policy statement: The organizational policy statement is a potential for
supporting rights for employees thus its scrutiny can lead to identification of applicable
legislations and regulations to conflict resolution.

Importance of identification of legislations, regulations, agreements, policies, guidelines

and manuals.
 The organizational operations are made smooth by the regulations.
 Conflict address is improved since applicable rules are already identified.
 Procedures for conflict resolution are stipulated having that legislations and rules are
already identified.
 There is a ready working plan on conflict resolution when the legislations and
regulations have been identified.

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Receiving and analyzing grievances and disputes
Employee grievances are concerns, complaints or problems that emanate from the workers
regarding their positions of work or the general workplace. Whenever such grievances are
raised, it means that something made them feel dissatisfied and to them is sounds unfair and
unjust. Workplace grievances should not be disregarded but be taken seriously whether they
are valid or they have a negating effect on the employees or workplace.

Characteristics of an employee grievance

 They can be unvoiced or expressly stated.
 They can be written or oral
 They may be validated, legitimate or based on falsehood.
 They may relate to the organizational working.
 Usually makes employees feel that an injustice has been done.
 Grievances may have an effect on the work performance of the organization.

Causes of grievances
 Economic causes such as salaries and wages where employees demand for pay
adjustments.
 Undesirable work environment in which the employees feel uncomfortable to work in.
 Bad supervision practices such as nepotism, bias or favouring other employees.
 Organizational changes such as implementation of revised policies.
 Individual employees’ relations issues such as victimization, humiliation or neglect.
 Managerial operations such as strict management which gives the employees pressure
to work.

Types of grievances
 Pay and benefits grievances: They originate from economic concerns of the employees
such as desire for higher salaries.
 Bullying grievances: They are grievances which results due to harassment of the staff.
 Work conditions grievances: They are grievances which are as a result of poor working
conditions such as cleanliness, temperatures at the workplace, bathroom conditions or
other hazards which hinder effective working.
 Workload grievances: They are grievances which are as a result of too much work with
minimal benefits to the employees. They always arise when employees’ workload
increases nut the pay remains the same.

Policies and procedures of handling grievances.

Policies
 Find a permanent solution for the grievance
 Attentive listening to the grievances
 Quick responses on grievances
 Being open minded to grievances
 Coming up with alternative courses of action

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  Keeping open and two-way communication
 Documenting every step of employee grievance process.

Procedures
i. Taken an informal action as a manger or a supervisor
ii. Hold a formal meeting with the employee (s) concerned.
iii. Conduct further investigation of the grievance
iv. Make a decision and communicate it to the employee(s) in question.
v. Check whether there was satisfaction in the employee regarding the grievance
resolution and refer to higher level of resolution if employee was not contented.

Dispute resolutions
Procedure
i. Identify the dispute to be resolved.
ii. Define the elements of the dispute.
iii. Appeal to the aggrieved party to find a working solution for the grievance.
iv. Communicate the solution reached upon to other affected parties.
v. If not resolved, seek guidance from higher level authority.

Importance of dispute resolution

 Enhances working conditions
 Reduces harassment and bullying.
 Unfair performances are assessed and addressed effectively
 Grounds of employee grievances are neutralized.

Industrial dispute
Sources of industrial disputes.
a) Incompatibility and differentiation of goals: Various departments set goals which
conflict with other departments which lead to the people within the departments having
disputes.
b) Interdependence: The level and extent to which employees rely on each other can be a
source of industrial dispute. One department may feel that it was a responsibility of the
other department to do a certain task and when the task is not done by the two
departments, disputes may arise as to who should do it.
c) Resource uncertainties and scarcity: Each organizational department has a need for
resources. When the resources are scarce, the departments scramble for them which is
a potential cause of industrial disputes.
d) Reward systems: The remuneration systems in the organization might be viewed as
unfair especially in pay raises and compensation bonuses. This potentially causes
industrial disputes as employees feel unfairness.
e) Conflicting management styles and values: The organizational culture which is defined
by organizational management and values can cause disputes as the employees are lost
which one to follow among the conflicting styles and values.

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Dispute resolutions methods.
 Appointing a grievance officer who can handle the organizational employee grievances
 Informal resolution of the grievances by mutual arbitration of the parties
 Formal resolution of the grievances by following the laid down work policies
 Legal settlement by seeking court intervention applying the constitutional laws.

Economic impact of industrial disputes

 Disputes can lead to serious costs of disrupted production due to the disputes
 The finances used to resolve the disputes could be put into better use.
 The procedures of dispute resolution make a considerable expenditure to the organization.
 When disputes of resources arise, they can lead to potential waste of resources.

Management
Making recommendations to the management.
As human resource professionals, it is important to daily deal with employee grievances and
disputes. This means that the management has to be on toes regarding the certainty and
satisfaction of the employees. Therefore, recommendation to the management is very important
to ensure that conflict and grievance issues are communicated well and handled effectively.

Procedure of making recommendations to the management.

i. Creating the system for grievance redress of grievances and disputes.
ii. Acknowledging the grievances in the organization
iii. Investigating into the grievances and disputes.
iv. Holding a meeting to determine the level of grievances
v. Noting down the important aspects of the grievances and disputes.
vi. Researching about the grievances
vii. Compiling a report about the grievances and disputes.
viii. Laying down effective recommendations to the management.

Importance of making recommendations to the management.

 Decisions can be reached effectively with appropriate recommendation
 Appeal process is made easier as recommendations are already set
 Decisions by management will be informed from the analysed recommendations
 The situations are reviewed and appropriate steps and practices developed
 Main causes of grievances are addressed from the root by the recommendations.

Implementation of the decisions by the management.

Grievance recommendations and mechanisms are increasingly becoming vital in the
management and handling of the workplace disputes. The mechanisms serve to meet the
organizational requirements which in turn address the concerns of the people. This is what is
referred to as effective implementation of the mechanisms. Strategies and proactive efforts are
put in place to address the grievances and ensures that grievances are handled well.

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Procedure for enhancing the implementation of the decision by management
i. Defining the scope and determining the goals for implementing the decision of grievance
handling
ii. Designing the implementation process
iii. Implementing and managing the operations
iv. Monitoring, reporting and learning from the implementations made.

Methods of implementing the decision by management

 Sustainable analysis of the implementation: Checking out whether the implementation will
be efficiently made within the organization.
 Stakeholder identification and planning: Identifying and planning on the people to be
involved in the implementation process.
 Progressive reviews: Continually reviewing the implementations and making changes
where necessary.
 Executive steering groups: Having in place identified people to steer ahead the
implementation within the organization.
 Project plans: Conducting the implementations in a phase by phase basis like a continuous
project.

The role of the industrial court

 To arbitrate on the disputes regarding labour falling under the labour Act.
 Adjudicating on questions of law and facts that emanate from labour laws.
 Disposing labour disputes in an effective manner.

The role of civil courts in settling industrial disputes

 Administrating penalties on the people charged guilty on labour cases.
 Upholding the rule of law in labour disputes and grievances
 Litigating the scope of jurisdiction of the labour laws
 Administering compulsory measures for the address of labour disputes

Conclusion
This learning outcome covered the identification of legislations, regulations, agreements,
policies, guidelines and manuals. It also addresses receiving and analyzing grievances and
disputes, making recommendations to the management, and implementation of the decisions
by the management. The understanding of the ideas presented is comprehensive is getting along
with the concept of employee grievances and disputes.

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Further Reading

Colvin, A. (2004). The relationship between employee involvement and workplace dispute
resolution. Relations Industrielles/Industrial Relations, 59(4), 681-704.

8.3.7.3 Self-Assessment

Written Assessment
1. Mr. Daniel is starting manager in Oakland Coffee farm and lately the farm has been facing
numerous problems of employee grievances and disputes. He has been told to identify the
legislation and regulations for the grievance handling. Which of the following will not be
part of his methods of identification of legislations, regulations, agreements, policies,
guidelines and manuals?
A. Examination of industrial purpose
B. Sustainability method
C. Scope determination
D. Examination of organizational principles
2. Jumbo has lately been experiencing critical grievances from employees in his dairy farm.
He wants to know how to deal with each grievance thus has to classify them to types. Which
of the following is not a type that he can classify the grievances into?
A. Bullying grievances
B. Workload grievances
C. Work conditions grievances
D. Promotion grievances
3. Jane works with Platinum Insurance and does not see the need to handle minor grievances
from the employees. Which of the following can tell her the need to resolve the grievances?
A. Enhances working conditions
B. Gives power to employees
C. Helps employees to get money
D. Is a normal process
4. Edwin understands that grievances has characteristics. However, he doesn’t understand
how to distinguish the characteristics. Help him identify which among the following is not
a characteristic.
A. They can be unvoiced or expressly stated.
B. They may relate to the organizational working.
C. They can be written or oral
D. They are always negative

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5. Given that you are the manager in charge of dispute resolution in your organization. Help
the employees with the procedure of dispute resolution.
6. You have been asked to highlight the role of industrial court. Which are the particular roles?
7. As a manager in Githunguri Dairy, you are asked to educate the other staff on the possible
causes of grievances. Compose a training on the possible causes of dispute in the dairy
farm.

Practical Question
John, an upcoming arbitration student wants to learn the arbitration procedure to help solve
conflict in his place of work. He wants to go to a nearest arbitration office and practically learn
the procedure. However, before he goes, he would like to get a blueprint of the process so that
he can have some knowledge. Please help him to come up with the sample procedure.

8.3.7.4 Tools, Equipment, Supplies and Materials

 Computer and projector screen

 White board and marker pens
 Furniture (tables and chairs)
 Sample Company operations, procedures and standards
 Writing materials and pens

8.3.7.5 References

Lewin, D. (2020). Individual voice: Grievance and other procedures. In Handbook of research
on employee voice. Edward Elgar Publishing.

Opatha, H. H. D. N. P. (2019). Defining a Grievance: A Theoretical Examination of An Old

Issue. Sri Lankan Journal of Human Resource Management, 9(1).

Wich, S. (2020). Alternative Dispute Resolution: What Employers Need to Know.

Management Report for Nonunion Organizations, 43(4), 3-5.

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8.3.8 Learning Outcome No 7: Coordinate employees’ welfare programme
8.3.8.1 Learning Activities

Learning Outcome No7: Coordinate employee’s welfare programme

Learning Activities Special Instructions

7.1. Definition of employee welfare program as per the SOPs. Observation

7.2. Articulation of goals and objectives of each programme Projects
as per the work place policies. Review of portfolios
7.3. Running of employee’s welfare programme in line with
SOPs.

8.3.8.2 Information Sheet No8/LO7: Coordinate employees’ welfare programme

Introduction
This learning outcome covers Importance/objectives of employee welfare, tpes of employees’
welfare programs, features/characteristic of employee welfare programme, advantages and
disadvantages of employee relations, goals and objectives of each programme as per the work
place policies and running of employee’s welfare programme.

Definition of key terms

Employee’s welfare programme: it means anything done for the comfort and (intellectual or
social) improvement of the employees, over and above the wages paid.

Content/Procedures/Methods/Illustrations
Employee welfare programme
Employee welfare is undertaken in order to motivate employees and raise the productivity
levels. In most cases, employee welfare comes in monetary form, but it is not limited. There
are other forms of employee welfare such as housing, health insurance, stipends, transportation
and provision of food. An employer may also cater for employees’ welfare by monitoring their
working conditions.

Importance/objectives of employee welfare

 Lack of strong trade union movement: In the absence of strong trade unions and
effective leaders, welfare work helps the workers in the industry to stand on their own
feet, think properly and systematically of their interests, progress hand in hand and
participate in the nation’s development.

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  Poverty: Poverty is one of the main reasons behind the provisions of labour welfare
activities. Indian workers in majority are poor, and are, therefore, unable to provide a
healthy living for their families and good education for their children.
 Illiteracy: In India, the number of educated workers is low. Being illiterate, they are
unable to receive advanced industrial training, understand the problems in industries,
and understand their own interests and those of nations.
 Low level of health and nutrition: Due to poverty and illiteracy, the Indian workers
remain unhealthy and ill fed. This reduces their productivity and efficiency.
 Lack of healthy recreation: Due to lack of healthy recreation, the workers indulge in
crime and other wrong activities. The employer should provide means of healthy
recreation in order to maintain their efficiency.
 Lack of training: The number of trained workers in India is very low. Thus, it is
necessary to have training facilities for such a vast workforce.

Types of employees’ welfare programme

There are two types of employee welfare
 Statutory: The government has passed a number of legislations in order to set
minimum standards of safety and welfare for the employees at their workplace.
Provisions have been made for the welfare facilities such as washing, storing, first-aid
appliances, hours of work, sanitation
 Voluntary: The employers voluntarily have provided welfare amenities to the
employees besides the statutory facilities. Facilities for recreation, medical treatment,
free meals or subsidized meals, schooling facilities for children, and sports and games
are provided by many organizations.

Employee welfare can be categorized in two

A comprehensive list of welfare activities on labour welfare into two broad groups
1. Welfare measures inside the work place
 Conditions of the work Environment
 Conveniences (water)
 Worker’s Health Services
 Workers’ recreation
 Workers education
2. Welfare measures outside the work place
 Sanitation, waste disposal.
 Roads, lighting, parks, recreation, playgrounds.
 Schools: nursery, primary, secondary and high school.
 Markets, co-operatives, consumer and credit societies.
 Bank
 Transport
 Communication: post, telegraph and telephone.
 Health and medical services: dispensary, emergency ward, outpatient and in-patient
care, family visiting, family planning

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Features/characteristic of employee welfare programme
 Labour welfare includes various facilities, services and amenities provided to workers
for improving their health, efficiency, economic betterment and social status.
 Welfare measures are in addition to regular wages and other economic benefits
available to workers due to legal provisions and collective bargaining.
 Labour welfare measures are flexible and ever-changing. New welfare measures are
added to the existing ones from time to time.
 Welfare measures may be introduced by the employers, government, employees or by
any social or charitable agency.
 The purpose of labour welfare is to bring about the development of the whole
personality of the worker to make him a good worker and a good citizen

Advantages and disadvantages of employee relations

 To enhance the level of morale of employees.
 To create a loyal, contented workforce in organization.
 To develop a better image of the company in the minds of the employees.
 To enable the workers to live comfortably and happily.
 To develop efficiency of the workers.
 To reduce influence of trade unions over the workers.
 To expose philanthropic and benevolent activities of the company.
 To make the workers know that the company takes care of them.
 To develop positive attitude towards job, company and management.
 To reduce tax burden.
 To develop a feeling of satisfaction of employees with the company.
 To develop a sense of belonging to the company.
 To retain skilled and talented workers.
 To develop better human relation.
 To prevent social evils like drinking, gambling through improvement of working
conditions, cultural activities and social conditions.

Theories of welfare approaches

Policing Approach: According to this theory, the factory owners exploit the employee in an
unfair manner. Instances of exploitation are making the employees work for long hours, paying
low wages, neglecting health and safety provisions, providing unhygienic conditions of work,
etc. A welfare state enacts legislation under which managements are compelled to provide basic
amenities to the workers. Thus, the state assumes the role of a policeman and compels the
employers to provide welfare facilities and punishes the non-complier.

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Religion Approach: The religion theory has two aspects namely, the investment aspect and
atonement aspect. The investment aspect implies that the fruit of today’s deeds will be reaped
tomorrow. Any action, whether positive or negative, is thus, treated as an investment. Inspired
by this belief, some employers plan and organize welfare facilities for the employees. The
atonement aspect of the religion theory implies that the present disabilities of a person are the
result of the sins committed by him previously. He should undertake to do good deeds on how
to atone or compensate for his sins.

Philanthropic Approach: Affection for mankind is the basis of philanthropic theory. This
theory refers to the provision of good working conditions, creches and canteens out of pity on
the part of the employers who want to remove the disabilities of the employees. The
philanthropic theory is more common in social welfare rather than in industrial enterprises.

Paternalistic Approach: According to the paternalistic theory, the industrialist holds the entire
industrial estate, properties and the profits accruing from them in trust. This trust is not actual
and legal but it is moral. The employers provide for the well-being of their employees out of
funds under their control. As, the whole enterprise is held in trust for the benefit of the
employees, this theory is also called trusteeship theory.

Placating Approach: When workers are organized and unions are strong, management has to
appease them. As crying children are pacified by sweets, workers are pleased by welfare works.
This theory is based on the assumption that management can bring peace in the organization
by welfare measures
Public Relations Approach: According to this theory, welfare facilities provided by the
employers to the employees, create a good image of the employer in the mind of the general
public. Some employers proudly take their visitors around the plant to show how well they
have organized their welfare activities.

Functional Approach: According to the functional theory, welfare work is a means of

securing, preserving and increasing the efficiency of labour. Welfare facilities are provided by
the employers to the employees to make them more efficient.

Employee welfare policies

 Willingness of the management
 Objectives sought to be achieved
 Range of facilities to be provided
 Timing of the facilities
Employee Welfare benefits
 Employees would start working sincerely and honestly.
 It would improve the productivity and efficiency of the employees.
 The attachment and belongingness among the employees would be developed.
 Employees would be healthy and they would be mentally and physically fit to perform
in the best manner. Thus; it promotes a healthy work environment.
 Employees can enjoy stable, developed, dedicated employees, moreover, employees
will work with interest and with full involvement.

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  Higher Productivity, higher efficiency, promotes health industrial relations, ultimately
industrial peace can be achieved.
 Absenteeism, labour turnover such problems of the employees would not arise in the
organization.
 Employees would come forward to share additional responsibilities of the company.
 It will improve the standard of living of the employees.
 Development of good work environment and work culture in the organization
 It enhances the goodwill and reputation and thereby image of the company.
 No chance for industrial dispute in the company. Healthy harmonious relation between
employer and employees will be developed

Principles of employee welfare

 The programme should satisfy real needs of the workers: This means that the manager
must first determine what the employees’ real needs are.
 The programme should be handled best by a group approach: For example, life
insurance purchased as a group can be obtained at a significantly lower price than some
insurance purchased by the individual
 The employer should not assume a benevolent posture: Some employers foster
dependency on employees which is counter-productive
 The cost of the programme should be calculable and its financing established on a sound
basis: There are several employee services such as pension, provident fund, insurance,
etc., which are not cheap to administer.
 The management should ensure cooperation and active participation of unions and
workers in formulating and implementing the programme.
 There should be a periodical assessment or evaluation of the programme and necessary
timely improvement on the basis of feedback.

Conclusion
This learning outcome covered importance/objectives of employee welfare, tpes of employees’
welfare programs, features/characteristic of employee welfare programme, advantages and
disadvantages of employee relations, goals and objectives of each programme as per the work
place policies and running of employee’s welfare programme.

Further Reading

Read more on employee welfare program from Danielsson, C. B. (2016). Office type’s
association to employees’ welfare: Three studies. Work, 54(4), 779-790.

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8.3.8.3 Self-Assessment

Written Assessment
1. A housing scheme is a local-authority housing plan that is given to workers. The following
are the different types of housing scheme which one is not.
A. Subsidized housing scheme
B. Income grouping
C. Village housing projects scheme
D. Society schemes
2. The statutory schemes are those schemes that are compulsory to provide by an organization
as compliance to the laws governing employee health and safety. What are the measures
involved in non-statutory welfare measure?
A. Health
B. Education
C. Recreation
D. All of above
3. The program designed to provide counselling to those employees having emotional or
personal problems are classified as
A. Safety promotion
B. Employee assistance program
C. Wellness promotion
D. Health promotion
4. In a financial benefit, the benefits sponsored by employer to provide lending and saving
services for employees of organization is classified as
A. Purchase discounts
B. Credit union
C. Debit union
D. Sale discounts
5. The benefits programs which combined disability insurance program to reduce the
compensation claims of workers are classified
A. Utilization
B. Legal insurance
C. Relocation management programs
D. Integrated disability management programs
6. Employee training programme is a programme that employee that is used to educate
employee so that they can be able to improve their performance. Write a short note on
Employee’s Training Programme?

7. The principle of labour welfare is adequacy of wages, it concedes that labour welfare
services are not a substitute for wages instead it is to motivate and better working and social
life for workers. Discuss 6 principles of employee’s welfare

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Case study
In its 2016 Corporate Social Responsibility Report Inventec identified a range of material
issues, such as financial performance, customer satisfaction, product regulations conformity,
hazardous substance management. Among these, promoting employee welfare stands out as a
key material issue for Inventec. What are the likely actions were taken by Inventec to promote
employee welfare? In its 2016 Corporate Social Responsibility Report Inventec they were
likely to take the following actions for promoting employee welfare

8.3.8.4 Tools, Equipment, Supplies and Materials

 Polices, guidelines and regulations Strategic plans

 Career progression manuals
 Organization structure, policies and procedures
 Contracts and Agreements

8.3.8.5 References

Campbell, O. A., Olurinola, I. O., Oluwatobi, S., & Emiola, T. O. (2017). COOPERATIVE
SOCIETY AND EMPLOYEES’WELFARE. International Journal of Current
Research, 9(5), 50050-50055.

Huang, Y., & Guo, F. (2017). Welfare Programme participation and the wellbeing of non-local
rural migrants in metropolitan China: a social exclusion perspective. Social Indicators
Research, 132(1), 63-85.
Prabhakar, R., & Mishra, S. (2016). A comparative study of employee’s welfare in nationalize
bank and private sector bank. Splint International Journal of Professionals, 3(11), 58.

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 CHAPTER 9: MANAGE EMPLOYEE REWARDS

9.1 Introduction
This unit specifies the competencies required to administer compensation. It involves
processing salaries, remuneration and benefits, effecting statutory deduction on the payroll,
identifying, negotiating and administering insurance covers, process insurance claims.

9.2 Performance Standard

It involves processing salaries, remuneration and benefits, effecting statutory deduction on the
payroll, identifying, negotiating and administering insurance covers, process insurance claims
according to SOPs, as per the work place policies, as per the employees’ records, as per the
organization policy and as per the organization procedures.

9.3 Learning Outcomes

9.3.1 List of Learning Outcomes
a) Process employee remuneration
b) Carry out job evaluation
c) Administer wages and salary of employees
d) Manage insurance covers and claims
e) Undertake payroll audits

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9.3.2 Learning Outcome No1: Process employee remuneration
9.3.2.1 Learning Activities
Learning Outcome No1: Process employee remuneration

Learning Activities Special Instructions

1.1 Defining reward management Observation

1.2 Definition of terms related to employee reward management Projects
1.3 Highlighting the objectives of reward management in an Review of portfolios
organization
1.4 Description of the types of employee rewards
1.5 Highlighting components of employee remuneration
1.6 Analysis of the factors influencing employee remuneration
and adjustment of salaries by an organization
1.7 Analysis of wage rate determination
1.8 Underlining the importance of employee remuneration

9.2.3.2 Information Sheet No9 /LO1: Process employee remuneration

Introduction
This learning outcome covers definition reward management, definition of terms related to
employee reward management, highlighting the objectives of reward management in an
organization, description of the types of employee rewards, highlighting components of
employee remuneration, analysis of the factors influencing employee remuneration and
adjustment of salaries by an organization and analysis of wage rate determination.

Definition of key terms

Reward management: This is the process of formulating and implementing strategies, rules
and regulations geared towards rewarding people in this case the employees fairly and equally
with consistency in relation to their value in the company.

Wages: This is a monetary payment given to someone for the services they have offered in
accordance with the agreement they set.

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Content/Procedures/Methods/Illustrations

REWARD MANAGEMENT
Reward management is a word used to encourage and motivate the employees to work hard to
achieve to aims and objectives of the company. There is need to understand how the process
of reward management works because it enables the company to meet their objectives; nothing
should is more encouraging to an organization than understanding the process of reward
management. All company must understand this process if they are to attain their aims.
Therefore, it’s a requirement for all companies to come up with their process on how they will
user in reward management. For this to be effective companies hire workers who meet the
requirement of the company in relation to meet the set objectives.

Process of reward management

This process is given in the steps below:
i. Identification of the strategies and philosophies that have been employed in human
resource management in rewarding the employees.
ii. The processes, methods and procedures for identifying, designing and implementing
the reward management must be clearly stated. At this point, job is evaluated and
analysed through market analyzing and looking into the payment structures that the
employees will get as reward. Performance is measured and clear management
procedure set to effectively meet the objectives of the company.
iii. The monetary reward and the non-rewards are identifying at this point. These include
the wages levels, work satisfaction, changes of being promoted to the next level of the
same job.
iv. At this stage the objectives and goals of reward process are identified.
v. The reward management process is effectively communicated and changes noted by all
the employees to attain objectives of the company.
vi. Reviewing of the policy is done on regular basis to ensure that the objectives are
achieved.
vii. At this stage the effects of external factors are considered in relation to how they affect
the policy. This includes considering the rewards given by competitors and the
economic climatic challenges and changes.

Objectives of reward management

There are objectives that a company enjoys through use of reward management. This includes
the following:
 Help in driving the desired behaviour from the employees; the employees ensure that
they work together to meet the objectives of the company because they are clearly stated
and a procedure set on how to meet them; therefore, more effort by the employees is
directed towards attaining the more wages thus meeting the aims of the company.
 The overall strategy of the company is stated; this is effective in ensuring that
employees remain more focus to the company. It’s hard for the workers to remain focus
if they lack a strategy to follow to achieve the mission of the company.

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  Ensure that the company complies with the laws and rules of the state; this enhances
more advantages through government incentives and tax relieves thus enhancing more
profits for the company.
 Through reward management the cost of the services and products offered by the
company are effective and affordable because they all companies have a minimum price
and maximum of selling their services and products.
 Reward management helps an organization to achieve their values and goals.
 It helps to create a positive relationship between the employers and employees.
 Through reward management performance culture is established and through this a
platform is created to manage losses and maximize profits.
 The reward management helps in attracting and retaining skilled employees as well as
motivating the employees.

Types of employee rewards

There are two broad categories of employee rewards; this includes extrinsic and intrinsic
rewards, and monetary and non-monetary rewards. The other classification is the founded-on
performance and membership rewards.

Extrinsic and Intrinsic Rewards

The intrinsic rewards are the employee’s satisfaction gotten from the job they are doing. They
are based on the individual and initiated through internally. This means that the workers initiate
internal factors which help them meet the objectives; these include pride, feeling part of the
team. The extrinsic rewards are external from the job source. See the figure below:

Figure 32: Intrinsic and extrinsic rewards

Monetary and Non-Monetary Rewards

The monetary well-being of workers might be or might not be influenced with rewards. The
monetary well-being is affected through giving salaries, tips, and bonuses. The indirect is
accomplished through pension plans, paying employees through sick leaves, giving discounts
and paying when the employees are on vacations.

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Performance and Membership Rewards
The rewards offered by a company are either founded on performance where the best
employees are rewarded to motivate others to work extra hard to get the rewards or membership
where on members of a company are rewarded. With HR in different companies they argue
that rewarding is based on performance which is not the case; their argument is to motivate the
employees. Performance rewards are done through commissions, incentives, bonuses, payment
upon merit, etc. The membership rewards include wages increment, increment of the cost of
living and other benefits.

Objectives of employee rewards

The main objective of the employee reward is to motivate them to put more efforts in their
work and merge their goals to the company’s goals and mission. This keeps the employees in
track of the mission of the company as they interact with the daily challenges. Employee’s
rewards increase workers commitment to the company. The workers through the commission
and tips they get they remain committed to their work which boosts the profits of the company.
The objectives of reward management are related to the objectives of giving the employee’s
rewards.

Theories of reward management

These theories can be split into two categories. These include the content theory where the
factors affecting employees’ performance is analysed and identified. The other theory is the
process theory which deals with how employees’ traits impact on their behaviour. Content
theory is linked to extrinsic rewards which help in improving the psychology of the employees.
Whereas the intrinsic is like to the process theories where the employees are recognized,
respected and rewarded by the company’s management; thus, improving their job satisfaction.
The pyramid by Abraham Maslow shown below describes all that learners need to know as
they study the theories of reward management.

Figure 33; Maslow pyramid

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Motivation- Hygiene theory
This is where the employees are motivated to put more efforts in their work through the
available hygiene conditions within the company. When the working environment is tidy
employees have more time of delivering better services to the employees whereas when the
environment is untidy more time is spent by the employees seeking a comfortable environment
within the company thus wasting more time that would have been spent analyzing and coming
up with invention and innovations within the business.

Expectancy Theory
This theory suggests that we select our behaviour based on our desires of what we expect as an
outcome of a given event or an action. This was majorly used in motivating and showing the
ability to establish the correlation between the workers performance and motivation.

Reward management strategies

This is forming and implementing strategies, rules and policies with an aim of ensuring equal
rewarding of people. The rewards systems must be designed, implemented and maintained
through processes and procedures geared towards meeting the needs of the company as well as
those of the shareholders. Through reward management strategies employee remuneration are
managed; this enhances meeting all the needs of all employees. This creates a best platform for
rewarding of the employees in their work. Also reward management deals with recognition and
developing opportunities for the company and the employees which is geared towards
increasing performance at the job industry.

Employee reward management

Components of employee remuneration
There are many benefits that an employee is entitled to in a company; these include: Salaries,
non-financial and fringe benefits.
 Wages and Salaries: Wages are hourly payment that employee get for their services as
they have agreed with their employers and without working the employee is not paid.
The salaries are fixed payment employees get with or without working.
 Incentives: This refer to cash paid on top of salaries and wages
 Fringe benefits: These are benefits entitled to the employee; examples are health
insurance, gratuity, recreation, etc.
 Non- financial benefits: This includes job promotion, being recognized, best working
conditions, etc.

Factors Influence Employee Remuneration and Adjustment of Salaries

The factors are divided into external and internal. The external factors include market labour,
trade unions, the community and economy and cost of living. The internal factors include the
organization’s strategies, work and performance evaluation, the employees.

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Importance of employment Remuneration
 This promotes generational factors of recruiting where the company ensures that the
qualified employees who enhances the mission and help the company to attain their
objectives.
 It allows employers to use benefits to recruit and through this leveraging is done
therefore attracting and retaining best employees.
 This help to come up with a comprehensive statement on the compensation per worker
in the organization.
 It also gives more information about the workers in the career portal.
 To the employees they are allowed to access other jobs in they offer their services in
the company. This allows them compare the compensation of other employees in other
organization.
 It gives unique information needed by the employees; this enhances healthy
competition among other companies.
 Help in highlighting the values and strategies used by the company.

Conclusion
This learning outcome covered definition reward management, definition of terms related to
employee reward management, highlighting the objectives of reward management in an
organization, description of the types of employee rewards, highlighting components of
employee remuneration, analysis of the factors influencing employee remuneration and
adjustment of salaries by an organization and analysis of wage rate determination.

Further Reading

Read more on employment Remuneration from A. Karlitasari, L., & Suhartini, D. (2017,
January). Comparison of simple additive weighting (SAW) and composite performance index
(CPI) methods in employee remuneration determination. In IOP Conference Series: Materials
Science and Engineering (Vol. 166, No. 1, p. 012020). IOP Publishing.

9.3.2.3 Self-Assessment

Written assessment
1. You have been selected as a manager which one will you choose as a type of employee
rewards?
A. Salaries
B. Wages
C. Extrinsic and Intrinsic Rewards
D. Reward remuneration

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 2. You the leader in your group how will define Wages
A. Wages are hourly payment that employee get for their services as they have
agreed with their employers.
B. Cash paid at the end of agreed time with or without working.
C. Cash used to run a company
D. Cash used as tips to motivate employees.
3. You are in a conference and giving the HR managers ways to deal with remuneration.
State the broad categories of the components of remuneration.
A. Salaries, non-financial and fringe benefits.
B. Employers and stakeholders
C. Strategies of the company
D. The competitors
4. The topic on Reward Management was interesting and you loved the way the teacher
expounded the concept. Using your own words how will you define what reward
management is?
A. This is the process of formulating and implementing strategies and giving
employees gifts to encourage them to work hard.
B. This is the process of formulating and implementing strategies and offering paid
leaves to employees
C. This is the process of formulating and implementing strategies and motivation
the employers to come up with new strategies.
D. This is the process of formulating and implementing strategies, rules and
regulations geared towards rewarding people in this case the employees fairly
and equally with consistency in relation to their value in the company.
5. Your manager has requested you to guide the employees on performance evaluation.
State a theory of reward management.
6. Select the best option to the management employees that will motivate them to work
hard
7. Identify the process of reward management used by company in the according to the
steps learnt

Practical Question
The students in groups of 4 are expected to select a company then discuss how it motivates its
employees despite the stiff competition.
Resources
1. Internet
2. Books
3. Pens
4. Journals

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9.3.2.4 Tools, Equipment, Supplies and Materials
 Records
 Documents
 Case studies
 Group discussions
 Observation
 Survey
 Interviews
 Questionnaires
 Articles

9.3.2.4 References

Antonie, M. D., Cristescu, A., & Cataniciu, N. (2010). A panel data analysis of the connection
between employee remuneration, productivity and minimum wage in Romania. Recent
Advances in Mathematics and Computers in Business, Economics, Biology and
Chemistry. Iasi, Romania: G. Enescu University.
Perkins, S. J., & Jones, S. (2020). Reward management: Alternatives, consequences and
contexts. Kogan Page Publishers.
Rose, M. (2018). Reward Management: A Practical Introduction. Kogan Page Publishers.

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9.3.3 Learning Outcome No2: Carry out job evaluation
9.3.3.1 Learning Activities
Learning Outcome No2: Carry out job evaluation
Learning Activities Special Instructions

2.1 Explaining Job evaluation Observation

2.2 Highlighting the purpose of job evaluation Projects
2.3 Identification of methods of carrying out job evaluation Review of portfolios
2.4 Identification of factors to consider when selecting
appropriate method of job evaluation
2.5 Listing the advantages and disadvantages of job evaluation
methods

9.3.3.2 Information Sheet No9 /LO2: Carry out job evaluation

Introduction
This learning outcome covers explanation of job evaluation, highlighting the purpose of job
evaluation, identification of methods of carrying out job evaluation and identification of factors
to consider when selecting appropriate method of job evaluation.

Definition of key terms

Job evaluation: This is a process of grading jobs in an organization on the basis of the job,
duties, responsibilities and required skills allocated to job. This results in designating a job a
particular pay grade.

Job classification: This is a structured technique used to analyse, duties, responsibilities,

experience, and level of education among others of a position description to determine the
title that fit the job specifications and standards.

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Content/Procedures/Methods/Illustrations
Process of job Evaluation
i. Job Description: The supervisor in the organization allocates the job seeker duties and
responsibilities and puts down the descriptions of the job. He or she then signs it with
the incumbent employee if there.
ii. Approval: The vice manager assesses job description presented by the supervisor and
if he coincides with it he approvals the responsibilities and signs it. If he does not
coincide with it, it’s taken back to the supervisor for changes.
iii. Review: The HR department reviews the job description before presenting it to the job
evaluation committee. This is necessary because the HR team will ensure that there is
uniform and fairness in the descriptions of jobs. In case of mistakes its edited then taken
to the vice manager and supervisor for signing before finally presenting to the job
evaluation committee.
iv. Evaluation: Upon presenting to job evaluation committee, they ensure fairness among
jobs, they minimize hike of job evaluation grades by verifying changes in job content
presented for review.
v. Confirmation: Staff Salary Administration Committee then confirms all job
evaluations, and titles endorsed above by job evaluation committee. After confirmation
it then counsels the supervisor on the results and title outcomes. The supervisor finally
gives guidance to the employee on the results of job evaluation.

Purpose of job evaluation

 To aid in coming up with an acceptable payment.
 Assist in right placement of employment in jobs.
 Encourage transparency in the financial systems.
 Promote equal pay for employees.
 Promote employment, career advance and succession planning.

Methods of carrying out job evaluation

Job ranking
In this method the job is looked into as a whole and no need to break it into its element for
analysis. The value of the job is ascertained through ranking it with other whole jobs.

Advantages of Job ranking

 This method serves better in small organization with defined jobs.
 Easy to understand and conduct

Disadvantages of Job ranking

 The degree of job differences is unclear with only one job indicated better than the
other.
 Not beneficial to large organization.
 Grading is influenced with the existing wage rates

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Job classification
In this method grades are determined then jobs graded based on the grades made. An example
is putting books on the shelves bearing their names. The description is careful to avoid
confusion and simply the work of fitting in different jobs in their right classes. This method is
used with majority of the government occupations.

Advantages of job classification

 Simple and easier to conduct
 More accurate when compared to ranking method

Disadvantages of job classification

 The current salary rates impact the planning of jobs
 Classification occurs in general terms and overall evaluations are the only possible
method.
 Tedious to come up with specific class-specifications for each job.

Factor comparison Method

This compares jobs on many factors to get a value for each job and to arrive at the structure of
the job. It includes judging which jobs have more certain remunerative factors. Jobs are
compared with each using one factor at a time. The comparison factors include working
conditions, physical requirements, mental requirements, responsibility and skill requirement.
These are basic universal comparison factors and a company can develop theirs.

Advantages of Factor comparison Method

 Inspection of benchmark job is thorough.
 Reliable of accuracy and error elimination
 Has better result unlike the other methods discussed above because similar jobs are
compared and graded against each.
 Gives a better structured comparison of job than the non-analytic methods.

Disadvantages of Factor comparison Method

 Complicated in applying
 Not in line with the common thought that the process of accessing jobs and fixing
salaries should be kept apart.
 The salary rates for the benchmark job are assumed to be accurate hence used for
reference.

Point factor method

This entails rating a job on many remunerative factors and summing up the scores of each
factor to acquire a total score of a job. A keen worded rating scale is developed for each
compensable factor. This includes factor definition, definition of degree and a score for each
degree. The rating scale is considered as a set of rules.

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Advantages of point factor Method
 Easy to come up with job classes in terms of accumulative points
 It’s flexible as parties can come up with their compensable factors to be used.

Disadvantages of point factor Method

 Hard to develop a rating scale. Defining factors and their degrees is strenuous and need
exemplary skills.
 The process of weighing how a factor is weightier and awarded a given score within
being unfair to either difficult or easier of a job

Identifying factors to consider when selecting appropriate method of job evaluation

 Complexity: This is the level of how a job is complex in terms of its application and
can be measured on how the job factors and degree are defined.
 Knowledge

The knowledge of methods helps to consider the best fitting methods that should be used in
different companies.
 Problem solving: This measures the degree on how a given method will help meet its
intended purposes as well as solve the problem of evaluation.
 Scope of a job: This determines the limits and best methods that can be used depending
on the job.

Conclusion
This learning outcome covered explanation of Job evaluation, highlighting the purpose of job
evaluation, Identification of methods of carrying out job evaluation and Identification of factors
to consider when selecting appropriate method of job evaluation.

Further Reading

Read more on knowledge from Koziol, W., & Mikos, A. (2019). The measurement of human
capital as an alternative method of job evaluation for purposes of remuneration. Central
European Journal of Operations Research, 1-11.

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9.3.3.3 Self-Assessment

Written assessment
1. You have been selected to interview job seekers which factors you will consider when
selecting best methods of job evaluation.
A. Complexity and knowledge
B. Scope of the study
C. The employee’s requirement
D. The qualification of the job seeker
2. Your manager has been asked to carry out job evaluation but because he is attending to
different sections and responsibilities of the company, he asked you to prepare him some
of the methods to use when carrying out job evaluation. Select the method you will use.
A. Factoring the job
B. Understanding the location of the job
C. Job ranking
D. Comparison method
3. As a group leader ask your group to define job evaluation.
A. This is a process of grading jobs in an organization on the basis of the job, duties,
responsibilities and required skills allocated to job.
B. This is a process of grading jobs in an organization on the basis qualification.
C. This is a process of grading jobs in an organization on the basis experience
D. This is a process of grading jobs in an organization on the basis school of higher
learning.
4. Which of the following is the correct order of the process of job evaluation?
A. Job description, Approval, review, evaluation, confirmation
B. Job description, review, evaluation, Approval confirmation
C. Job description, review, Approval, evaluation, confirmation
D. Job description, review, evaluation, confirmation, Approval
5. Highlight 4 methods of job evaluation
6. What do you understand by the term job classification?
7. Discuss the process of job evaluation

Practical Question/Case study

The class should be divided into 5 groups then the teacher gives them a test to ascertain whether
they understood the topic of job evaluation.

Resources
1. Foolscaps
2. Pens
3. Group discussion
4. Writing material

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9.3.3.4 Tools, Equipment, Supplies and Materials
 Records
 Documents
 Case studies
 Group discussions
 Observation
 Survey
 Interviews
 Questionnaires
 Articles

9.3.3.5 References

Bender, A. F., & Pigeyre, F. (2016). Job evaluation and gender pay equity: a French
example. Equality, Diversity and Inclusion: An International Journal.
Koedijk, M., Renden, P. G., Oudejans, R. R., & Hutter, R. I. (2019). Training for the job:
evaluation of a self-defence training programme for correctional
officers. Ergonomics, 62(12), 1585-1597.
Koziol, W., & Mikos, A. (2019). The measurement of human capital as an alternative method
of job evaluation for purposes of remuneration. Central European Journal of
Operations Research, 1-11.
Livy, B. (2020). Job evaluation: A critical review.

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9.3.4 Learning Outcome No 3: Administer wages and salary of employees
9. 3.4.1 Learning Activities
Learning Outcome No3: Administer wages and salary of employees

Learning Activities Special Instructions

3.1 Familiarization with the organizations’ salary and benefits, Observation

human resource policies and manuals Projects
3.2 Determination of salary levels of joining or promoted of Review of portfolios
employees
3.3 Preparation of salary budgets
3.4 Identification of steps in remuneration processing
3.5 Updating employee payroll data
3.6 Effecting statutory and voluntary deduction
3.7 Running of payroll and production of payroll by-products
3.8 Submission of payroll by-products to Accounts for disbursement
and remittance.
3.9 Instituting of salary control measures

9.3.4.2 Information Sheet No9/LO3: Administer wages and salary of employees

Introduction
This learning outcome covers salary, wages and monetary compensations are key determinants
of employee productivity. The management of this crucial function of HR determines several
factors in the workplace such as motivation of employees, employee morale, organizational
behaviour among other factors. In this learning outcome, the learner will be expected to
understand how to objectively develop and maintain organizational pay policies and structures.
The learner will also be expected to understand the various ways of determining salaries for
new employees as well as promoted employees. The payroll data, its management, preparation
and submission will also be covered.

Definition of key terms

Human Resource Policies: These are guidelines that have been developed, documented and
approved for reference in various matters of concern to the management of employees within
the organization.

Payroll: This is the comprehensive list of employees working for a particular company at a
specific time and receiving remuneration from the company. It shows the amounts that each
employee is entitled to receive from the company including salaries and wages, bonuses,
allowance, any other pay and all deductions made by the company from the employee’s salary.

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Content/Procedures/Methods/Illustrations

EMPLOYEE SALARY AND WAGES

Preparation of salary budgets
A salary budget is money allocated by a company at a particular time which will be used to
pay salaries to employees. Salary budgets play a key role in decision making on matters related
to employees such as promotions, re-designations or salary reviews. When doing salary
budgeting it is paramount to consider the following factors;
 Provision for adjustment of the salaries,
 Departmental budgetary allocation within the organization.
 The companies’ ability to sustain the wage bill
 Market forces that may force alteration to the salaries.
 Existing economic and social factors such as CBAs
 Alignment of the salary budget to the overall company budget

General and individual salary reviews

General reviews take place when employees are given an increase in response to general market
rate movements, increases in the cost of living, or union negotiations. General reviews are often
combined with individual reviews, but employees are usually informed of both the general and
individual components of any increase they receive. Alternatively, the general review may be
conducted separately to enable better control to be achieved over costs and to focus employees’
attention on the performance related aspect of their remuneration. The steps required to conduct
a general review are:
i. Decide on the budget.
ii. Analyse data on pay settlements made by comparable organizations and rates of
inflation.
iii. Conduct negotiations with trade unions as required.
iv. Calculate costs.
v. Adjust the pay structure – by either increasing the pay brackets of each grade by the
percentage general increase or by increasing pay reference points by the overall
percentage and applying different increases to the upper or lower limits of the bracket,
thus altering the shape of the structure.
vi. Inform employees.

Guidelines have to be issued to managers on how they should conduct reviews. The guidelines
will stipulate that they must keep within their budgets and may indicate the maximum and
minimum increases that can be awarded, with an indication of how awards could be distributed.
The steps required to conduct an individual pay review are:
 Agree the budget.
 Prepare and issue guidelines on the size, range and distribution of awards and on
methods of conducting the review.
 Provide advice and support.

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  Review proposals against budget and guidelines and agree modifications to them if
necessary.
 Summarize and cost proposals and obtain approval.
 Update the payroll.
 Inform employees

There are several external factors that affect a company’s ability to do a successful salary
review. These factors include but not limited to;
 Trade unions and their effect on company policies
 Individual employees’ perception of the wage
 Cost of living
 Government’s legislation and regulations such as laws on minimum wage
 Ability of the organization to pay
 Supply and demand for labour
 Market trends and competitiveness of the industry the organization is operating in.

Determining salary levels on joining or promotion

Setting salaries for employees is always a tricky thing for any manager. It is a major problem
in organizations where pay structures do not exist. The dilemma comes in the answering the
two fundamental questions of, am I paying enough to get the best possible talent? Or am I
overpaying my employees? But in order to objectively determine the salary level for your
employee, whether joining or on promotion basis, one needs to assess the value of the position
that the job holder will be holding. Then carry out extensive research on what companies of
similar level as your organization are paying job holders for the same position. This should be
followed by setting of upper and lower salary ranges that will be sustainable for your
organization as well as become competitive enough. Determine how you will be paying your
staff, this can be weekly, fortnightly or even monthly or whichever period that you’ll agree
with the employee. Determine also other modes of compensation that you will offer. Lastly, be
flexible and willing to negotiate with the employee.

Instituting salary controls

Salaries and wages can be hard to control, but just like any other business expenditure, it need
to be controlled to avoid overspending on salaries at the expense of other business costs. Salary
controls are aimed at ensuring that employees are paid for work done only, only valid
employees are paid and ensuring that wages are paid at the right rates of pay. There is no better
way to bring salary control into an organization than instituting sound payroll administration
systems and use of Integrated Human Resource Management Systems (IHRMS).

Conducting internal audits and separation of duties within the organization are likely to lessen
the probability of fraud and existence of ‘ghost employees’ in the company. All these measures
can be well documented in sound HR Policies and Guidelines Manual and well laid out
company pay structures guidelines.

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Remuneration
Steps in remuneration processing
i. Establish the employee’s unique personal identification numbers
ii. Collect the relevant employee tax and other third-party deductions information
iii. Chose a payroll schedule
iv. Calculate the employee’s gross pay
v. Determine the employee’s total deductions
vi. Calculate the net pay and pay the personnel through the various payment modes
availed
vii. Keep the remuneration data for future reference

Payroll
Updating employee payroll data
The HR Manager should be constantly updating the payroll data to reflect accurate and update
information of employees. Information the payroll database may change due to the changes in
the job such as promotion, layoffs, leaves of absence, promotions, demotion, retirement or even
salary reviews. The employee personal data may change over time prompting the payroll data
to be updated. Other changes in the employee’s status, emergency contact information and
other important information contained in the payroll database requires instant updating upon
change.
Statutory and voluntary deductions
These are deductions that are made form an employee’s salary for remission to the respective
party by the employer. The deductions vary in terms of amounts and types and may change
from one employee to another. However, employees should consent to the authorization of the
deduction form their salary. This can be done either through the employment contract or by
assent through formal communication to the employer. In Kenya, there are three main statutory
deductions that employers should deduct from their employees and remit to the government.
NHIF, this is medical insurance fund that is regulated by the government of Kenya and its
contribution is determined from time to time by the government through various Acts of
Parliament. NSSF is a social retirement provident fund managed by the government to
safeguard employees upon attainment of retirement age. Employers are required to make
deduction of specific amount from the employee’s salary and pay an equal amount to the
government for the employee. KRA PAYE this is the amount of money paid to the government
by all employed citizens as tax.
Other deductions that can be made from the salary of an employee are; Bank loan repayment
schedules, provident fund payments, salary advance given to employees, union fees that
employees maybe subscribed to, insurance premiums among others. Employers are expected
to make payment to any third parties for monies collected from the employees.

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Running of payroll and production of payroll by-products
Upon deduction of third-party payments from the employees, the employer ought to
consolidate the amount and remit them to the respective parties. In order to account for the
monies collected, the employer provides a detailed list of all deductions collected from various
employees showing the employees details and amounts collected from each. This detailed list
is called a by-product and should be submitted to the third party for verification and
accountability purpose.

Conclusion
This learning outcome covered salary, wages and monetary compensations are key
determinants of employee productivity. The management of this crucial function of HR
determines several factors in the workplace such as motivation of employees, employee
morale, organizational behaviour among other factors. In this learning outcome, the learner
will be expected to understand how to objectively develop and maintain organizational pay
policies and structures. The learner will also be expected to understand the various ways of
determining salaries for new employees as well as promoted employees. The payroll data, its
management, preparation and submission will also be covered.

Further Reading

Learners are expected to read more on the role of labour unions in the determination of salaries
and remuneration.

9.3.4.3 Self-Assessment

Written assessment
1. In an organized industrial establishment, pay reviews take place once in years
A. Three
B. Seven
C. Ten
D. Fifteen
2. ____________ ensure that the employees get an income which is sufficient for meeting
their present and future necessities and contingencies.
A. Minimum wages
B. Fair wages
C. Living wages
D. Real wage

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3. All employees in an organization must be recorded in the organization system. Which of the
following records lists all employees who earn remuneration, the amount of renumeration,
the deductions and the net amount aid for each period?
A. Employee database
B. Change in payroll rate form
C. Payroll register
D. Reference inquiry form
4. Wages and salaries are sometimes affected by some external factors. Which of the
following factors is not an external influencing factor in wages and salary administration?
A. Cost of living
B. Labour legislations
C. Labour market conditions
D. Ability to pay
5. What are the main problems that organizations meet in implementing pay structures and
policies?
6. The decisions of salary reviews within your organization have been for a long time left to
the Industrial Relations Officer to make in consultation with the Trade Union. However,
been the HR Manager, you have been tasked by the Board of Management to come up with
alternative salary review techniques that will be both externally competitive and internally
equitable. {1mark for each correct answer
7. Most small organizations do not have a formal graded structure that defines the rates of pay
for jobs and entirely rely on ‘spot rates. These ‘spot rates’ do not define any scope of pay
range, career progression path or even salary bracket for the job. You have been contracted
to develop a pay structure that will be used to determine salaries for entry posts and even
promotion of staff. Discuss any five guiding principles that you will guide you in the
development of the job structure.

Practical Question
The candidate is required to:
1. Develop a job and pay structure for a company with 75 employees.
Resources
1. Stationery (books and pens and pencils)
2. Company profile document
3. Company operations, procedures and standards manual
4. Relevant journals and magazines

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9.3.4.4 Tools, Equipment, Supplies and Materials
 Records
 Documents
 Case studies
 Survey
 Interviews
 Questionnaires
 Articles

9.3.4.5 References

Anthony, W. P., Kacmar, K. M., & Perrewe, P. L. (2006). Human resource management: A
strategic approach. (5th ed.) Ohio:Thomson.

Dessler, G., Griffiths, J. & Lloyd-Walker, B. (2007). Human resource management. (3rd
ed.). Frenchs Forest, N.S.W.: Pearson Prentice Hall.

Stone, R. J. (2010). Managing Human Resources. (3rd ed.). Milton, QLD: John Wiley &
Sons Australia Ltd.

Torrington, D., Hall, L., Taylor, S. and Atkinson, C. (2011) Human resource management.
8th Ed. London: FT/Prentice Hall.

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9.3.5 Learning Outcome No 4: Manage insurance covers and claims
9.3.5.1 Learning Activities
Learning Outcome No4: Manage insurance covers and claims
Learning Activities Special Instructions

4.1 Identification and assessment of organization insurance Observation

needs and requirements Projects
4.2 Identifying insurance providers Review of portfolios
4.3 Obtaining insurance quotations
4.4 Acquisition of adequate insurance policies and covers
4.5 Receiving and processing insurance claims

9.3.5.2 Information Sheet No7/LO4: Manage insurance covers and claims

Introduction
This learning outcome covers identification and assessment of organization insurance needs
and requirements, identifying insurance providers, obtaining insurance quotations and
acquisition of adequate insurance policies and covers.

Definition of key terms

Insurance need: Businesses, families and any other entities are faced with unpredictable
uncertainties and possibilities of loss or injury that can lead to unwarranted inconveniences.

Quotation: Once someone gets the need to have an insurance cover for his/her property, life,
health, business, job, cars etc. then he/ she will look for an appropriate insurance company that
will take up the risk and insure the intended property.

Premiums: This is the amount of money that the insured pays to the insurer at the agreed
period after entering into a contractual agreement between them commonly referred to as an
insurance policy. The premiums act as the binding obligation between the insured and the
insurer and failure to pay the premiums may result in the cancelation of the policy or loss of
coverage.

Risk: It is the possibility of occurrence of a loss, injury or any other adverse effect either in
present or in the future situation involving exposure to a hazard or danger.

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Content/Procedures/Methods/Illustrations

INSURANCE
Types of insurance covers
There are various types of insurance policies that one may take for any subject. However, the
following are some of the moist common types of insurance covers that exist;

Figure 34 insurance covers from iedunote.com/types-of-insurance

Health Insurance
This is an insurance cover that is taken by someone to cover the health of the insured against
expected and unexpected medical expenses such as outpatient treatment expenses, surgical
operations, medical emergency services, medications, maternal benefits, optical and dental
procedures among others. The cover may either cater for all medical expenses or partial
payments, depend on the agreement signed between the insurer and insured.

Life insurance
This is an insurance policy that one takes for the life of the insured. The subject matter of
insurance is the life of a person. The insured is paid the total sum amount insured if the
person insured dies or at the end of a specific period. In the event of death, payment is made
to the authorized next of kin or any person that the policy holder authorizes the insurance
company to pay the sum amount insured.

Fire insurance
This is an insurance policy that protects the insured against the loss that comes due to fire.
The policy only compensates losses that arise from occurrence of fire. In some insurance
companies, the policy is customized to compensate the policy holder against losses arising
from war, riots or even chaos.

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Marine insurance: This is a policy that protects cover against marine perils such as collision
with underwater rocks, attack by enemies, fire, piracy activities etc. This insurance covers the
water vessels (ships), their cargo and freight.

General insurance: This includes property insurance, liability insurance, social insurance
and other forms of insurance.

Identifying insurance providers

Once a person gets an insurance need, identification and choosing of an insurance company is
key. Most insurance providers work through agents or broker who act as intermediaries
between the insured and the insurer. When identifying an insurance provider for your need,
the following factors need to be considered;

 Company history and reputation; understand how long the insurance company you are
interested in has been in business, their mode of business operation, its values, mission
vision etc.
 Understand the company’s financial strength; how difficult is it to claim for
compensation form the company. Be keen not to choose an insurance provider who
won’t be able to pay your claim because of financial incapability.
 Chose an insurance provide who will give appropriate coverage for your personal or
business needs. How broad is the scope of coverage of the risks insured?
 Price; ‘you get what you pay for’. Pricing should not be the only factor that you look
at. Remember, pricing differs between insurers because of various factors and customer
needs.
 Ease of doing business; get insight on how the insurance provider communicates or
interacts with the clients. Watch out for online communication platforms that the
provider uses, customer service, claim processing procedures among other things.
 The power of referrals; talk to family, colleagues and friends about their experience
with a particular insurance provider. This will help you to gain accurate feedback and
more information about the particular provider.

Characteristics of insurable risks

An insurable risk is a risk whose, upon evaluation by the insurance provider, conforms to the
set criterion and fulfils specifications to qualify for insurance. For a risk to be insurable, it
must have the following characteristics;
 Definiteness and Measurability: The loss must be measurable in terms of money or
time. It should be assessable definite and economically measurable.
 Accidental and Unintentional Loss: The probability of the risk occurring must be
accidental or unintentional. The loss arising from the risk should not be predictable,
conceivable or intentionally caused by the policy holder.
 The insured object must be legally accepted within the nation and not against the public
interest or against the legal policies.
 The subject matter must be of interest to the insured. He/she must suffer some loss due
to loss of the insured object.

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  Economically Feasible Premium: The premium must be economically achievable, and
the average severity of the loss can be readily determined to establish the premium
amount.
 Randomly selected and Large Loss Exposure: this means that there must exist a
sufficiently large number of homogenous exposures to a specific event in order for the
insurer to make a reasonable prediction of the loss related to the event. This means that
there must exist a large number of exposed units or policyholders to incorporate a
statically random sample of the population. This makes it easier for the insurer to spread
the risk among the insured.

Obtaining insurance quotations

At most times, insurance providers will give customized quotations to clients based on the
client’s need. This is after provision of key information that is used by the insurer to evaluate
the risk and make a customized quotation. However, the information required varies
depending on the type of insurance cover that one is obtaining. For example, when acquiring
a medical insurance cover, you will be required to give more detailed information your pro-
existing medical conditions, your medical background, medical reports form a qualified
medical practitioner etc. If you are obtaining a car insurance policy, you may be required to
give your personal information, your driving history or even accidents that you have caused.

Principles of insurance
a) Principle of utmost good faith: This principle holds that parties in an insurance
contractual agreement should have faith in each other. Parties are expected to disclose clear
and concise information that would be of substance to each other to inform decision
making. Failure to disclose key information by either party can lead to cancellation of a
contract.
b) Principle of insurable interest: The principle provides that the subject matter of the
insurance policy must have financial gain to the insured and its loss or damage would lead
to a financial loss. The insurable matter must exist at the time of purchase of the insurance
policy e.g. a man is considered to have insurable interest in his wife.
c) Principle of subrogation: This is the principle allowing the insured to claim compensation
by a third party. The principle gives an insurer permission to pursue alternative methods of
recovering loss amounts from a third party either after paying the insured. An instance is
where if one gets hurt in a road accident due to reckless driving, the insurance company
will compensate the loss and seek compensation from third party for the money paid as
claim.
d) Principle of proximate cause: This principle is applied when loss occurs due to two or
more causes. The principle holds that if the property is not insured against all causes, the
nearest and most dominant cause of damage is found out and compensation is made against
the insured cause.

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e) Double insurance: The principle holds that it is possible to insure a subject matter against
two insurance covers. In the event of loss, corollary among the insurance providers is
established. The principle allows the insured to claim indemnity to the extent of actual loss
form all the insurance contracts involved in the claim.
f) Principle of indemnity: This states that the insured subject may not be compensated by
the insurance company any amount exceeding the insured economic loss. The principle is
aimed at returning the insured back to the same economic or financial position as was
before the loss or damage occurred.
g) Principle of loss minimization: The principle is aimed at giving the insured the
responsibility to take all measures possible to minimize the probability of loss or damage
on the property. It is aimed at reducing the likelihood of the insured causing deliberate
damage or loss of the insured subject matter.

Receiving and processing insurance claims

i. Lodging of claim; you are required to contact your insurance broker of agent and inform
him/her of the claim. Give detailed information about the damage or loss with
supporting evidence such as photos or videos of the circumstances.
ii. Claim investigations then begin by the insurer. The insurance company evaluates the
amount of loss or damage covered by your insurance policy and also identify any liable
parties. As the claimant, you can help the investigations by providing witnesses to the
loss or damage if any is available.
iii. Policy review. This involves through evaluation of your policy to see what and what
not is covered and any applicable deductibles that may arise.
iv. Damage evaluation. This involve application of experts such as actuaries, appraisers,
engineers or any other specialist to accurately evaluate the extent of damage.
v. Compensation is arranged. After repairs are completed or the lost or damaged items
have been replaced, your adjuster contacts you regarding settlement of your claim and
payment. The amount of time it takes to receive the payment varies depending on the
complexity and severity of damage or loss or the value of the claim.

Conclusion
This learning outcome covered identification and assessment of organization insurance needs
and requirements, identifying insurance providers, obtaining insurance quotations and
acquisition of adequate insurance policies and covers.

Further Reading

1. The learner is expected to do more study on the various reasons that may lead to the non-
payment of a claim.
2. Learners are also expected to also research on reasons that may lead to cancellation of an
insurance contract.

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9.3.5.3 Self-Assessment

Written assessment
1. Insurance organization has had a great impact in the today’s century. From the following
which is the main purpose of insurance
A. Provide compensation
B. Provide security
C. Share the losses of a few people among many
D. Create investment income
2. Which of the following statements is true?
A. A contract is automatically void if made under duress or undue influence
B. A contract is void if the subject of the contract is illegal
C. A contract is void when, through a mutual mistake, one party is thinking of one
type of subject matter of the contract and the other party is thinking of something
else as the subject matter.
D. The terms of a void contract can be enforced against the party when the party
whose actions made the contract voidable.
3. Insurable loss is a sudden and unexpected event that results in damage to an asset. Which
one of the following is not a condition for an insurable loss?
A. Losses must be under the control of the insured
B. The insured hazard must be widespread geographically
C. The probability of a loss should be predictable
D. Losses must be result from an unintentional action by the insured person
4. The principle of ensures that an insured does not profit by insuring with
multiple insurers.
A. Subrogation
B. Insurable interest
C. Co-insurance
D. Indemnity
5. List two examples of what is covered under each of the following types of insurance.
6. As a risk assessment manager in the leading Insurance company in the country, you have
been sent to asses risk exposure in one of your potential clients, highlight some of the
sources of information that you will rely on to identify risk exposures in the business
premises.
7. What do you understand by the term insurance and explain the basic concepts under which
an insurance fund must operate.

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Practical Question/Case study
The candidate is required to: Take a tour around the learning institution and identify at least
five types of risks that the institution is exposed to and propose the most appropriate insurance
cover types t take against the risks identified.

Resources
Writing materials and pens

9.3.5.4 Tools, Equipment, Supplies and Materials

 Observation
 Interviews
 Questionnaires
 Camera and video recording equipment(optional)

9.3.5.5 References

International Journal of Business, Economics, Finance and Management Sciences 1083-

4346
Kuratco, D. (2014). Entrepreneurship: Theory, Process and Practice (9th Edition). South-
Western Cengage learning. ISBN 978-1-285-05175-8
Oxford Development Studies, Routledge Publications 1360-0818
Vandana, D. and Robert B. (2008), The Companion to Development Studies (2nd Ed.). Hodder
Arnold. 0340889144

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9.3.6 Learning Outcome No 5: Undertake payroll audits
9.3.6.1 Learning Activities

Learning Outcome No5: Undertake payroll audits

Learning Activities Special Instructions

5.1 Definition of payroll cleansing Observation

5.2 Identification of payroll data to be cleansed as per the Projects
organization policy Review of portfolios
5.3 Collection of primary data as per the work place polices.
5.4 Comparing payroll data and primary data
5.5 Identification and amendment of discrepancies as per the
organization procedures.
5.6 Performance of communication within the human resource
department

9.3.6.2 Information Sheet No9 /LO5: Undertake payroll audits

Introduction
This learning outcome covers definition of payroll cleansing, identification of payroll data to
be cleansed, collection of primary data, comparing payroll data and primary data,
identification and amendment of discrepancies and performance of communication within the
human resource department.

Definition of key terms

Discrepancies: This refers to the state or quality of being discrepant or in disagreement, as
by displaying an unexpected or unacceptable difference inconsistency.

Payroll Audits: Refers to as an analysis of a company's payroll processes to ensure accuracy.

Payroll cleansing: Clean wage is the new concept in compensation and benefit for
employees then all allowances are amalgamated under one head and that may be basic salary.

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Content/Procedures/Methods/Illustrations

PAYROLL AUDITS
Payroll audits examine things like the organization employees, pay rates, wages, and tax
withholdings. It is usually conducted at least once per year to verify your process is up-to-
date and legally compliant.

Benefits of conducting a payroll audit

 Prevent payroll fraud by weeding out ghost employees or mismarked time cards
 Catch manual errors made when entering numbers into a system
 Spot calculation mistakes if doing payroll by hand
 Realize you need to factor in a raise
 Remove terminated employees from your payroll
 Verify your tax withholdings are accurate
 Accurately account for paid or unpaid time off
 Compare hours paid to when employees clocked in
 Ensure you are compliant with employment law

Payroll audit procedure

i. Look at the employees listed on your payroll: Review your employees listed on
your payroll.
ii. Verify that all of these employees worked for you during the time period
iii. Analyse your numbers: When conducting a payroll audit, you can’t avoid
analyzing numbers.
iv. Verify time is correctly labelled: Most employers give employees time off from
work, with many providing paid time off (PTO).
v. Reconcile your payroll: Compare your findings to other records to verify your
totals match. If there is a discrepancy, closely examine your records to find out the
problem.
vi. Confirm tax withholdings, remittance, and reports are accurate: Another critical
payroll audit procedure step is verifying the accuracy of your employment taxes.

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Payroll audit checklist

Figure 35: Audit checklist fromswetc.com

Payroll audit objectives

 Occurrence and Existence: A key objective of auditing the payroll is to ascertain the
existence of the actual payments and whether the payments were to genuine
employees of the company, which is achieved by determining whether there are
proper controls over the payroll function.
 Completeness: Due to the huge amounts involved in the payroll, there is a need to
verify that all of the amounts paid out to employees are included. These amounts
include salaries to permanent employees, overtime, wages paid out to temporary
workers and other fringe benefits such as medical coverage and housing allowances
 Accuracy: An auditor should confirm that there were correct computations of all
benefits and deductions in the payroll. To test this, the auditor recalculates benefits
and deductions for a sample of workers. A proper review of clock cards is undertaken
to ensure accurate calculation of pay for work done.

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  Presentation and Disclosure: Payroll expenses are presented in the income statement
at the end of the financial reporting period. Proper presentation of payroll expenses
ensures a true and fair representation of the expense. Disclosures of any unusual
amounts included in the payroll are essential in explaining how and why these
unusual amounts were paid. The auditor checks whether the payroll expenses have
been presented in the required manner and whether any unusual amounts were
disclosed in the notes to the financial statements.

Payroll audit report

After the assessment is completed, the auditor will provide a final report on the payroll
system's benefits and deficiencies. The report may offer recommendations for much-needed
improvements in the payroll system, which can include both technical applications and
organizational practices. The analysis can also provide comparative statistics that show the
labour and monetary costs of maintaining the current system with those involved in
improving the system and bringing it up to the necessary standards.

Types of audits
 External audits: Audits performed by outside parties can be extremely helpful in
removing any bias in reviewing the state of a company's financials. Financial audits
seek to identify if there are any material misstatements in the financial statements.
 Internal audits: They are employed by the company or organization for whom they
are performing an audit, and the resulting audit report is given directly to management
and the board of directors
 Internal Revenue Service (IRS) audits: Routinely performs audits to verify the
accuracy of a taxpayer’s return and specific transactions
Payroll Data
This refers to the information of company's records of payments that were previously made to
employees, including salaries and wages, bonuses, and withheld taxes, or the company's
department that calculates and pays out these amounts

Identification of payroll data

 Salaries: This is a form of payment from an employer to an employee, which may be
specified in an employment. It is contrasted with piece wages where each job, hour, or
other unit is paid separately, rather than on a periodic basis.
 Wages: Refers to as monetary compensation (remuneration, personnel expenses,
labour) paid by an employer to an employee in exchange for work done.
 Bonus: A bonus payment is usually made to employees in addition to their base salary
as part of their wages and salaries.
 Withholding: Withholding tax, or a retention tax, is an oncome statement to be paid to
the government by the payer of the income rather than by the recipient of the income.

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Collection of primary data
Primary data is data that is collected by a researcher from first-hand sources, using methods
like surveys, interviews, or experiments.

Methods of data collection

 Documents and records
 Observations.
 Interviews.
 Surveys
 Experiments
 Focus groups
 Oral histories

Comparing payroll data and primary data

 Primary data is the type of data that is collected by researchers directly from main
sources while payroll data refers to the information of company's records of payments
that were previously made to employees, including salaries and wages, bonuses, and
withheld taxes, or the company's department that calculates and pays out these amounts.
 An example of primary data is the national census data collected by the
government while example of a payroll data is salaries details and wages.
 Primary data is available in crude while payroll data is usually available in company’s
record.
 Primary data can be collected using surveys and questionnaires while payroll data it is
obtained from the company’s files.
 The time required to collect primary data is usually long while payroll data the time
consumed in the collection of data is very short.

Identification and amendment of discrepancies

Causes of discrepancies
 Payroll data loss due to damage
 Payroll data is in the incorrect location
 Human error during Payroll data process
 Payroll documents loss due to theft
 Mixing up of Payroll data records with other files
 Incorrect unit of measurement was counted
Amending of discrepancies
 Re-checking the payroll documents in question. This should be your first step if
numbers aren’t matching up. It could be something as simple as a mistake during the
original counting process
 Check if the payroll data exists in another location.
 Make sure the correct unit of measurement was used

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  Ensure the has not mixing up of Payroll data records with other files
 Confirm that there is no missing paperwork.
 Investigate whether employees or customers have any information about the data.

Conclusion
This learning outcome covered definition of payroll cleansing, identification of payroll data
to be cleansed, collection of primary data, comparing payroll data and primary data,
identification and amendment of discrepancies and performance of communication within the
human resource department.

Further Reading

Read more on employee’s gross pay from Heathfield, Susan M. "The Difference Between
Gross Pay and Net Pay". The Balance Careers. Retrieved 2019-12-03

9.3.6.3 Self-Assessment

Written assessment
1. Taxes are some of the payroll data that is held on company’s files. Which of the following
acts levies a tax on employers and employees that is credited to the Federal Old-Age and
Survivors’ Trust Fund and the Federal Disability Insurance Trust Fund?
A. Federal Income Tax Act
B. Federal Insurance Contributions Act
C. Fair Labour Standards Act
D. Federal Unemployment Tax Act
E. Employee Retirement Income Security Act
2. The amounts needed for the payroll entries in the journal come from the employee’s earnings
record.
A. True
B. False
3. The Wage and Hour Division allows the practice of recording an employee's starting and
stopping time to:
A. The nearest five minutes.
B. The nearest tenth of an hour
C. The nearest quarter of an hour.
D. All of the above.

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4. In recording the monthly adjusting entry for accrued wages at the end of the accounting
period, the amount of the adjustment would usually be determined by:
A. Collecting the timesheets for the days accrued.
B. Using the same amount as the prior month's adjustment.
C. Using the wages of the salaried workers only.
D. A percentage of the previous week’s gross payroll.
E. A percentage of the previous week's net payroll.
5. Discrepancies are the state or quality of being discrepant or in disagreement, as by
displaying an unexpected or unacceptable difference inconsistency. State the ways of
amending the discrepancies in an organization
6. Highlight two methods of data collection
7. Payroll audit requires a detailed procedure of how to implement it. Discuss 6 steps used in
the payroll auditing.

Case Study
The invitation to tender for the new training multimedia package came at just the right time for
the business. Sales of existing products had been rather lackluster recently and it was felt that
some of the new entrants to the market had taken away what was previously our strong area of
the market. Now, here was an opportunity to move ahead of rivals and develop something with
a unique selling appeal. We had the production capacity and the marketing would follow our
well-known ways of developing customer awareness but who would manage the tender and
just what would we need to produce in order to win such a lucrative contract? Discuss why
empowering employees may get us ahead of the competitor. There is power in empowering
employees in an organization. There are a number of ways to empower the employees;
providing them with the technology tools and platforms they need to do their jobs better.
The following are some of the reasons why empowering employees would help an organization
to get ahead of the competitor:

9.3.6.4 Tools, Equipment, Supplies and Materials

 Records
 Documents
 Case studies
 Group discussions
 Observation
 Survey
 Interviews
 Questionnaires
 Articles

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9.3.6.5 References

Heathfield, Susan M. "Everything You Need to Know About Payroll Deductions". The
Balance Careers. Retrieved 2019-11-21

Murray, Jean. "How to Use the New W-4 Form to Calculate Employee Withholding". The
Balance Small Business. Retrieved 2019-11-10.

Murray, Jean. "When and How to Pay and Report Federal Unemployment Taxes
(FUTA)". The Balance Small Business. Retrieved 2019-11-11.

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 CHAPTER 10: COORDINATE ORGANIZATIONAL DEVELOPMENT

10.1 Introduction
This unit specifies the competencies required to coordinate organizational development. It
involves reviewing the existing work standards, reviewing the organization structure,
monitoring changing trends in the market place, identifying and implementing productivity
improvement methods, facilitating change management at the workplace, building a high
performance culture and developing knowledge management.

10.2 Performance Standard

It involves reviewing the existing work standards, reviewing the organization structure,
monitoring changing trends in the market place, identifying and implementing productivity
improvement methods, facilitating change management at the workplace, building a high
performance culture and developing knowledge management according to SOPs, as per the
work place policies, as per the employees’ records, as per the organization policy and as per
the organization procedures.

10.3 Learning Outcomes

10.3.1 List of Learning Outcomes
a) Review the existing work standards
b) Review the organization structure
c) Monitor changing trends in the market place
d) Identify and implement productivity improvement methods
e) Facilitate change management at the workplace
f) Build a high performance culture
g) Develop a knowledge Management system

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10.3.2 Learning Outcome No1: Reviewing existing standards
10.3.2.1 Learning Activities

Learning Outcome No1: Reviewing existing standard

Learning Activities Special Instructions

1.1 Familiarize with the work standards in the organization. Observation

1.2 Development of tools for reviewing and administration Projects
1.3 Identification, reviewing and documentation of work Review of portfolios
standards

10.3.2.2Information Sheet No10/LO1: Reviewing existing standards

Introduction
This learning outcome covers work standards, reviewing tools for administration,
identification, reviewing and documentation of work standards

Definition of key terms

Work standards: This is the best available method for performing an activity and the time
required to perform it. James Brewton (2013)
Policy: This is a guideline on how things should be done in order to achieve the organizational
goals.

Content/Procedures/Methods/Illustrations

WORK STANDARDS
How to develop work standards
In modern world of work, standards are important in supporting cooperation, trade, health,
safety and growth of any organization. Standards exist in every aspect of the organization from
communication standards to standards of goods and services produced. Standards play a key
role in the environment on how the organization is to achieve its objective. The development
of standards came around the turn of the 20th century, when a large number of national
standardization organizations were founded, including organizations that are nowadays known
as the British Standards Institution (BSI) and the American National Standards Institute
(ANSI). Their purpose was to create rules for the design of industrial products so that the
organizations could produce goods which were comparable in their key aspects.

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Steps of the Standards Development Process HSO _ world (2019)
i. Identify: Identify a need by employees and the employer. For instance, a technological
advancement in to increase production. Once a need is identified, a project proposal to
create standards or to update an existing one is written.
ii. Committee: The standards are created or reviewed by experts in the relevant field.
They include researchers, employees, customers who form into a technical committee.
iii. Study: The technical committee conducts preliminary research and creates a draft
outline of the new or revised standard.
iv. Consensus: once a draft is written, technical committee members formally meet in
person to approve a draft for public review. This consensus is required in order to
progress any further.
v. Public Review: The next step is to present the new or revised standard for public
review. Anyone is welcome to provide feedback to improve its quality and ensure
standards cover all relevant areas and perspectives.
vi. Approve: after public review, the standard goes back to the technical committee to
make amendments it deems necessary based on the feedback received. The committee
then votes on the final version.
vii. Publish: After the new or revised standard receives final approval from the technical
committee, it is officially released. The organization may adopt it and incorporate it
into their practice.

Importance of work standards

 They build trust between customers and suppliers.
 They assure compatibility and quality.
 They promote interoperability of products systems and services.
 They promote a common understanding.
 They support technical integration and protection of the consumer.

Characteristics of work standards

 They are voluntary and market driven. Every interested party can participate in the
making of a standard and provide comments.
 They are consensus based. All standards are subject to dialogue in order to establish
general agreement.
 They are approved by a recognized organization. This organization can be an
international or a national standardization organization that approves the document and
that the document has gone through the necessary procedures, and public consultations.

Roles of work standards

 Ensures the safety, quality and reliability of products, processes and services.
 Ensures efficient production.
 Ensures cost reduction through competition.

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Advantages of work standards
 Higher efficiency and lower costs during production because of ease in engineering,
procurement, manufacturing, quality and technology deployment.
 Enhanced product safety as well as safety at workplace.
 Lowe product-liability risk.
 Easier market access.
 More trust from customers due to compliance with quality and minimum standards.
 Less complicated contract negotiations.

Disadvantages of work standards

 They can become obsolete due to technological advancement.

Review of organization work standards

After organization work standards are set, it is important to implement, communicate and
review them continuously as it is essential for ensuring that they are effective. It is the
responsibility of a HR manager to review the work standards of an organization. They should
check on the behaviour and performance of the employees as well as discuss issues arising in
the work standards with the employees. There are employees who struggle with the work
standards of the organization, they can be approached by their direct supervisors for assistance.

Importance of reviewing work standards

 Old policies and procedures may be non-compliant with new laws and regulations.
 It ensures that the policies are consistent and effective.
 Regular review keeps the organization up to date with regulations, technology, and
industry best practices.
Benefits of reviewing work standards

 It helps in determination of whether the existing work standards are still needed.
 It helps in determining whether the goals of work standards are being met.
 It helps in determining the changes needed in work standards in order to be efficient
and effective.
Tools
Identify development tools
 The HR manager uses the following tools in reviewing the performance against the work
standards set:
 Graphic rating scales: This graphic scale uses sequential numbers, such as 1 to 5, or 1 to
10 to rate an employee’s relative performance in specific areas. Scales are often used to
rate behavioural elements, such as understanding the job tasks and participation in decision-
making. They can also be used to note the frequency an employee performs a certain task
or behaviour such as always, frequently, occasionally or never coming to work on time.
The HR manager adapts the scales to their organization needs.

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 360-degree feedback: This system takes into account the feedback, opinions and
assessments of an employee’s performance from the circle of people in the company with
whom they work. As the HR manager evaluates the input from many sources, they can note
positive and negative similarities and trends. They can also identify areas that may need
additional measurements and support.
 Self-Evaluation: The HR manager may ask an employee to evaluate their own
performance which is very effective. Employees may be more critical of their performance
than they might be. They can use a form that requires multiple-choice answers, essay-type
answers, or a combination of the two.
 Management by Objectives (MBO): This is also known as Management by Results. It is
a process whereby employees and managers form objectives together. They determine how
individual objectives align with the organization goals and how performance will be
measured and evaluated. It gives employees a clear understanding or what is expected and
allows them to participate in the process, which may foster better communication and
increase motivation.
 Checklists: Checklist is a quick and easy way to identify employees that have deficiencies
in various performance areas. It identifies those that need additional training and
knowledge to become more efficient.

What to consider when selecting development tools

a) Organization needs: The HR manager should have a clear understanding of the needs of
the organization in order to know what they are looking for. They should not look at the
tools and decide whether they need the functionality of the tool. The need to have the tool
should come first. The HR manager may not be really sure of the long-term direction of
their organization but planning for all eventualities leads to the perceived need for every
feature possible.
b) Flexible Process Support: The HR manager should consider the flexibility of the tool in
supporting processes and procedures. Looking for a software solution that fully and
precisely supports the current way of working is likely to be a fruitless search and it narrows
the vision, effectively eliminating the opportunity for change. Therefore, it is important to
get a tool that can adapt to the new process that has not been implemented yet and may
have not been devised yet. The process implemented is unlikely to remain static thus, the
tool should change, and also be configurable.
c) Requirements Formats: The tool should support multiple requirements formats. If there
will be a need to show requirements graphically, the tool should support visual
requirements representation in some form so that it does not become a limiting factor in the
success of an organization. Support for requirements elicitation is particularly important if
the HR manager is to avoid additional work importing original requirements from some
other product.
d) Change Management: The tool should be able to support change since requirements of an
organization do not remain unchanged forever. Changes of the future need to go through
some kind of approval process which, should at a minimum, consider the impact of that
potential change. Good change management requires some kind of base lining.

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 The HR manager should make sure they can easily define sets of requirements applicable
to a specific time, version or release.
e) Flexibility of Relationships: The possible relationships would be arbitrary, that is any
piece of information should be linkable to any other piece of information. That is not to say
the tool should not provide relationship rules, but there should be control of those rules and
not have the software limit the ability to create whatever traceability seen fit.
f) Collaboration: The HR manager should find out whether the tool can support
collaboration. Relying on email, text messages or group meetings to facilitate the
communication of team members in real time is highly inefficient. Information may be out
of context and afterward, no reliable record of the interchange exists, leaving other team
members in a vacuum with no good way to discover what is going on. Therefore, the
manager should look for tools that support some kind of communication, even if it is only
notification of change or allocation of tasks.

Identification, reviewing and documentation of work standards

Work standards can be identified in the following ways:

a) Collection of data in the current operations. This is helps in establishing the work sequence.
Metrics such as cycle time and step time per operator are recorded consistently.
b) Notice variations and issues. There are several ways to perform a task, but only one of these
ways uses resources, machines and operators in the most efficient way possible. The data
collected could have variations much as it has been performed by the same employees
whose output varies greatly. The manager could think of combining the tasks to prevent
the variations.
c) Finding the most efficient way to run the operations. Lean tools can be used to optimize
the work sequence and procedures. The goal is to find methods that are practical, useful to
everyone and free of difficulty.
d) Document everything. This can be done through digital work instructions. These
instructions are created with a manufacturing app. They ensure that operators follow each
and every step properly, according to the current best practice outlined the standardized
work.
e) Adapt training programs. The employees should understand the new standard procedures
and adhere to them. Although this might require re-training current workers, the idea is to
make sure that the new employee training programs are bases on standardized work.
f) Continuously improve the standard. The HR manager should not stop at establishing
standardized work, he should constantly strive to further improve the standards. Once
implemented, it becomes a lot easier to identify abnormalities and issues. Standardized
work is never perfect or final. It represents a current best practice that should be challenged
on a daily basis.

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When reviewing the work standards, the HR manager should consider the following;
a) Accountability. The employees should demonstrate a sense of responsibility when
performing their tasks. They should recognize how their performance affects overall goals
and objectives and therefore work under limited supervision. They should also establish
priorities appropriately, demonstrating an understanding of the urgency of tasks and the
impact of tasks on the department.
b) Ethical Behaviour. This behaviour is characterized by loyalty, honesty, fairness and equity
in interpersonal professional relationships. They should demonstrate a sense of
responsibility in the performance of all tasks.
c) Team work. The employees should demonstrate commitment to their co-workers’ success
by sharing information and offering assistance across unit and department as appropriate.
They should openly share relevant information to teammates and supervisors. They should
also take responsibility of their team assignments.
d) Effective communication. The employees should convey information appropriately to all
in the organization and in good time. There should be feedback to effective communication.
e) Effective time management. The employee should complete work on schedule. They
should give priorities to the urgent tasks in order to meet assigned deadlines. They should
also demonstrate timeliness in the management of projects in an organization.
The purpose of documentation of the work standards is to describe the use, operation,
maintenance, or design of software or hardware through the use of manuals, listings and
diagrams.

Types of documentation
 Requirements. These are statements that identify attributes, capabilities, characteristics
or qualities of a system.
 Architecture/Design. This is an overview of software.
 Technical. This is the documentation of code, algorithms and interfaces.

Conclusion
This learning outcome covered work standards, reviewing tools for administration,
identification, reviewing and documentation of work standards

Further Reading

Read more on documentation choosing a tool for requirements management by Inflectra

(2020).

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10.3.2.3 Self-Assessment

Written assessment
1. Effective work standards outline some key characteristics of a work activity. As the HR
manager, which of the following characteristics would you not look out for when
developing work standards?
A. Procedure for performing the work activity.
B. Equipment used.
C. Materials used.
D. The employee
2. You are the HR manager in your organization, you recently noticed indecent dress code
among the employees. You are supposed to come up with the guidelines that portray a
look a bout organizational action. What will you call these guidelines?
A. Policies.
B. Procedures.
C. Rules.
D. Organizational path.
3. You have been approached by an employee who thinks the work standards of your
organization conflicts with her beliefs. As the HR manager of your organization, what
is the first step you take towards solving this issue?
A. Clarify the situation.
B. Establish the alternatives.
C. Identify the difficulty.
D. Isolate the cause.
4. There are various tools that exist to support a standardized work environment. You are
required to advice the HR manager of ABC Company on the tools to use in his
company. Which of the following tools is not among the ones he should use?
A. Standard work combination chart.
B. Standard work production board.
C. Standard work skills matrix.
D. Policies and procedures.
5. As the HR professional in your organization, what are the steps you would follow in
developing and implementing a new policy?
6. In a lean manufacturing environment, standardized work is a key element to success.
By repeating a set method, the process is more organized and improvement
opportunities become more apparent. What are the main elements of standardized
work?

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 7. Policies show directions to the activities so as to attain the objective of the organization.
Your organization has not been effective and efficient in the achievement of its
objective, as the HR manager, what are some of the characteristics do you think could
be missing in your policy?

Case Study
Figures explained limited has been experiencing problems in the implementation of their
policy. The policy lacks continuity; there is an inadequate human and material resource. This
leads to widening of the distance between stated policy goals and the realization of such
planned goals. This has led to low productivity hence decline in sales. The profits have
continued to decline over the past few years. You as a HR consultant have been approached by
the company to help in the implementation of the policy. What steps would you take to ensure
effective implementation of the policy?

10.3.2.4 Tools, Equipment, Supplies and Materials

 Functional Classroom
 Computers
 Lecture Halls
 Tablets
 Functional organization

10.3.2.5 References

James Brewton. (2013). Using predetermined time systems to create work standards. Quality
Digest. USA.
Laurie, J. M. (2005). Management and Organizational Behaviour, 9th Ed., Pitman Publishing.
Raphael L. Vitalo. (2005). Building a Work Process Standard. Vital Enterprises. USA.

Satyendra. (2017). Standards and their importance for the Organizations. Star Web Maker.
India.
SHRM. (2020). How to Develop and Implement a New Company Policy. California. USA

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10.3.3 Learning Outcome No 2: Review organizational structure
10.3.3.1 Learning Activities

Learning Outcome No2: Review organizational structure

Learning Activities Special Instructions

2.1 Familiarize with the organizational structures in use by the Observation

organization. Projects
2.2 Development of tools for reviewing and administration Review of portfolios
2.3 Identification and documentation of components of the
structure requiring adjustments.
2.4 Making of recommendations to the management.

10.3.3.2 Information Sheet No10/LO2: Review organizational structure

Introduction
This learning outcome covers types of organization structures, functions of organization
structures, developing organizational structure, components of organization structure requiring
adjustments, recommendation of adjustments to the management and tools for reviewing and
administration.

Definition of key terms

Organizational structure: This is a system used to define the hierarchy of an organization.
Each employee’s position and function are identified and who they report to within the
organization.

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Content/Procedures/Methods/Illustrations

Organization structure
Types of organization structures
When developing an organizational structure, there are several factors that determine the type
of the structure. These factors are; revenues, number of employees, diversity of products, types
of customers and geographical spread. Small organizations have more informal cultures while
large organizations are more formal and bureaucratic. There are three types of organization
structure that are used by most organizations today;

a) Functional structure
This is the most common organizational structure. In this structure, all the specific functions of
the employees are brought together to form a department. Example of these departments
includes sales, marketing finance, accounting, human resource, research and production. A
functional structure has a firm hierarchy where each department has a separate management
staff and upward reporting lines of authority. Functional structures are effective for large
organizations with homogeneous product lines.

Advantages of functional structure

 The structure offers a high level of specialization.
 It is possible for the employees to become experts.
 The working skills of the employees are effectively improved.
 The work efficiency and productivity of work is enhanced due to the specialized skills and
technology.
 There is motivation of employees because they see their career path clearly within the
functional units.
 The cost of operation is minimized by functional specialization.
 There is a high-quality technical problem solving.

Disadvantages of functional structure

 The operation of the structure is complicated and is not easily understood due to its various
technicalities. The employees receive many instructions from different functional heads.
 It violates the principles of unity of command since an employee is accountable for more
than one boss.
 A functional manager tends to create boundaries around him and thinks only in terms of
his own department rather than the whole organization.
 There is delay in decision making due to lack of coordination among the functional
executives especially when a decision problem requires the involvement of more than one
specialist.
 There is a problem of succession in the top executives since the structure develops specialist
rather than generalists.

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The following is a diagram of a functional organizational structure.

Figure 36 Functional organization flow from nulab.com

b) Divisional structures
This structure organizes the activities of an organization into geographical, products, markets
or service groups. For example, an organization might have one division handling sales and
another division handling marketing. Each division would have a complete set of functional
departments. Organizations with numerous products, markets or regions prefer to organize their
businesses into divisions.

Advantages of Divisional structures

 There is division of work since they allow a team to focus upon a single product or
service with a leadership structure that supports its major strategic objectives.
 The structure allows existence of a common culture that contributes both to higher
morale and a better knowledge of the division’s portfolio.

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Disadvantages of Divisional structures

 It may result in too much autonomy among each division since each division may view
itself as completely separate from the other divisions and become concerned only with
meeting its own objectives instead of those of the organization as a whole.
 The structure may be more expensive to operate since each division operates as a
separate entity, is also needs its own resources, as sharing resources among divisions
may not always be practical. This leads to duplication of resources that might not be
present in a more centralized structure.

The following is a diagram of a divisional organizational structure.

Figure 37: Divisional structures from smartdraw.llc

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 c) Matrix Structures

This structure is ideal for organizations that are creating and launching new products or
initiating different marketing campaigns in order to manage the projects. The matrix structure
attempts to gain the benefits of functional organizations by combining specialized skills into a
project grid. They are designed to foster cooperation between functional silos so that similar
activities can be managed more efficiently to achieve a common goal.
Matrices have two chains of command; one for the project and another for the functional skills
which are brought into the project. Project managers have authority horizontally across the
departments. At the same time, employees still report to the department heads for their
function.

Advantages of Matrix Structures

 This structure is created with a clear objective and can be dissolved once the mission is
complete.
 It pulls together the employees with the particular skills and knowledge required for the
project which gives them the ability to work with other employees form other
disciplines as teams.

Disadvantages of Matrix Structures

 The structures are more complex since lines of authority run vertically and horizontally
with employees working for two bosses. This leads to conflicting directives from
project and functional managers, creating stress and confusion when setting priorities.
 Managers for matrix projects need special talents since they don’t have singular
authority they must be able to compromise and negotiate. They also need to have
tolerance for conflict and be able to handle difficult situations.

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The following is a diagram of a matrix organizational structure.

Figure 38: matrix organizational structure. from the investorbook

Functions of organization structures

a) Accountability: An organization hierarchy serves as a vehicle for accountability within the
organization. When something goes wrong within the organization, the management
structure allows the executive team to determine who was accountable for the issue, and
then the organization can set out to solve the problem.
b) Revenue Growth: The structure of an organization dictates how the organization will
grow. When a dynamic structure is in place, an organization can grow quickly and
accommodate all of the changes that may be associated with fast revenue growth. When
the organizational structure in place is not equipped to handle rapid revenue growth, it can
be overwhelmed and problems will arise. When an organization with a good organizational
structure increases revenue the organization bills get paid on time, invoices are issued to
customers without problem and the company is able to make payroll for its employees. A
weak structure could mean bills are paid late, invoices are lost and payroll is delayed.
c) Product Development: A strong communication structure can help to facilitate the
development of new products that can keep a company competitive. When communication
through the various departments is structured properly, engineers are given the information
they need in a timely manner to help bring new products to market. When the structure is
weak, development gets slowed down and new products take too long to get released. A
weak product development structure can leave a company constantly chasing the
competition and falling behind in market share.

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d) Communication: Organization structure communicates internally and externally, it shows
the relationships within the organizations, the responsibilities, and the size of an
organization, the type of an organization, the goals and the objective of an organization.
The employees are able to understand what is expected of them and the stakeholders get to
know how the organization is run.

Developing organization structures

When developing an organizational structure, the HR manager needs to define the framework
around which the business operates. By doing this, he chooses leaders and makes decisions
effectively. A clearly established structure helps employees resolve disputes and work together
to achieve strategic goals.

The following are steps followed in developing an organizational structure;

i. Definition of objectives: The HR manager lays down the objectives of the organization
in very clear terms. This helps him in determining the type and basic characteristics of
the organization. All the activities of an organization are detailed in terms of objectives
to be achieved.
ii. Determining activities: These activities help in the achievement of the objectives and
they depend upon the nature and size of the organization. Each major activity is divided
into smaller parts.
iii. Assigning duties: The individual groups of activities are allotted to different
individuals according to their ability and aptitude. The responsibility of every
individual should be defined clearly to avoid duplication and overlapping of effort.
Each person is give a specific job suited to him and he is made responsible for its
execution. Right man is put on the right job.
iv. Delegating authority: Every employee is given the authority necessary to perform the
assigned activity effectively. This is the power to make decisions, issue instructions,
guiding the subordinates, supervise and control them. Authority delegated to a person
should commensurate with his responsibility. An employee cannot perform his job
without the necessary authority or power. Authority flows from top to bottom and
responsibility from bottom to top.
v. Co-coordinating activities: Co-ordination of activities and efforts of different
employees is necessary to ensure effective performance of specialized functions. Inter-
relationship between different jobs and individuals are clearly defined so that every
employee knows from whom he has to take orders and to whom he is answerable.

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vii. Providing physical facilities and right environment: Proper physical facilities and
right environment leads an organization to a great success. Having the right persons on
right jobs is as important as having the right working environment. This is necessary
for the smooth running and the prosperity of the enterprise.
viii. Establishment of structural relationship for overall control: Establishing well
defined clear-cut structural relationships among employees and groups ensures overall
control over the working of all departments and their coordinated direction towards the
achievement of pre-determined goals of the organization. When an organization
provides a structural framework of duties and responsibilities does not only establish
authority relationships but also provides a system of communication.

Factors to consider when developing an organizational structure

A properly organized organizational structure will help provide transparency within the
organization, ensuring the complete and timely disclosure of information. The following are
factors to consider when developing an organizational structure;
 Clarity
 Understanding
 Decentralization
 Stability
 Adaptability

Identify components of organization structure requiring adjustments

a) Specialization: This is the degree to which employees are organized into subunits
according to their expertise. For example, human resources, finance, marketing and
manufacturing.
b) Chain of command: This is how reporting and oversight is done within the structure
of the organization. It is the way in which employees repot to one another or connect to
coordinate their efforts in accomplishing the work of the organization.
c) Span of control: It is the scope of the work that each employee in the organization will
be accountable for. For instance, top-level leaders are usually responsible for all of the
work of their subordinates, mid-level leaders are responsible for a narrower set of
responsibilities and ground-level employees usually perform very specific tasks. Each
manager in a hierarchy works within the span of control of another manager at a level
of the organization.
d) Centralization: This is how the flow of resources and information in an organization
is managed. A highly centralized organization concentrates resources in only one or
very few locations, or only a few individuals are authorized to make decisions about
the use of resources.
e) Formalization: This refers to the degree of definition in the roles that exist throughout
an organization. A highly formalized system has a very defined organization, a tightly
structured system, in which all of the jobs, responsibilities, and accountability structures
are very clearly understood. In contrast, a loosely structured system relies heavily on
the emergent relationships of informal organization.

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Recommend adjustments to management

 Specialization: Specialization may require adjustments in case of introduction of new

technology in the organization. This can be adjusted through training of the employees
in order for them to acquire the skills and knowledge required in managing the new
technology.
 Chain of command: This may require adjustments in case an employee leaves the
organization or a new employee joins the organization, the adjustments can be done
through hiring the right candidate for the job and communicating the chain of command
within the structure.
 Span of control: This may require adjustments in case of organization restructuring.
Once there is restructuring or promotion of some employees. There has to be clear
definitions of the responsibilities. That is who is responsible of whom and who is
responsible to whom. This helps in coordination of activities within the structure.
 Centralization: This may require adjustments in case of organization merger. When
organizations merges, some employees lose their jobs and others get promoted to higher
levels while others remain where they were. The adjustments can be done by the review
of the organization’s budget.
 Formalization: This may require adjustments in case of change in the organization
goals and objective. It would require the management to do adjustments through
reviewing their policies and procedures and ensuring all the employees understands the
new policies and procedures through training.

Tools
Development of tools for reviewing and administration
a) SWOT analysis: This is a structured planning method used to evaluate the strengths,
weaknesses, opportunities and threats involved in the current and future situation of an
organization. It involves specifying the objective of the business venture or project and
identifying the internal and external factors that are favourable and unfavourable to achieve
that objective.

Strengths and weaknesses are the factors of the organizational internal environment. When
looking for strengths, ask what you do better that your competitors, or what you have that is
more valuable that they have. In the case of weaknesses, ask what you could improve to at least
catch up with your competitors.
Opportunities and threats are the external uncontrollable factors that usually appear or arise
due to the changed in the macro environment, industry or competitors’ actions. Opportunities
represent the external situations that bring a competitive advantage if seized upon. Threats may
damage your organization so it is best to avoid or defend against them.

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b) PESTEL analysis: It is a simple and effective tool used in situation analysis to identify the
key external forces that might affect an organization. These forces can create both
opportunities and threats for an organization. The categories can include ethical, legal and
environmental. The outcome of PESTEL is an understanding of the overall picture
surrounding the company.

The balanced scorecard

This is a tool to measure your organization’s performance, or implementation of your strategy.
It focuses on a limited number of key indicators. Each is monitored against your past figures
and your targets. It is balanced in that it reflects all key areas of your activity, and internal and
external objectives. It is recommended that organizations develop their own scorecard and
indicators so that they reflect the organization’s specific strategy and unique properties.

Conclusion
This learning outcome covered: Types of organization structures, functions of organization
structures, developing organizational structure, components of organization structure requiring
adjustments, recommendation of adjustments to the management and tools for reviewing and
administration.

Further Reading

Read more on Structures in voluntary organizations: Understanding Voluntary Organizations

by Charles Handy (2007).

10.3.3.3 Self-Assessment

Written assessment
1. Organization structure is a vital tool for managing a company. Three of the following
sentences strongly reflect the importance of organization structure, which one does not?
A. Helps in planning the staff required to run the company efficiently and cost-
effectively.
B. Ensures necessary positions are not overlooked and there are no departments with
surplus staff.
C. Provide clear lines of authority thus preventing reporting and supervisory conflicts.
D. Encourages team work.

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2. Which of the following sentences is true about organizational structures?
A. A growing company has special considerations regarding organizational structure
B. All organization structures are standard
C. Organization structures ensure that a president of a company is not accessible by
the junior staff.
D. Small companies don’t require an organizational structure
3. Kamau opened his supermarket 3 years ago and has seen tremendous growth. This has led
to hiring of more staff. Recently, there have been a few cases of conflicts among
different supervisors for giving different directives to junior staff. Which of the
following will best help address these issues of conflicting directives?
A. Call a meeting of all supervisors and ask them to work together amicably
B. Take the staff for team building
C. Review the organization structure to clarify lines of communication
D. Ask the supervisors to be consulting you before giving any directives to junior
4. There are four types of organizational structure; Functional, Divisional, Matrix and
Flatarchy. Which of the following sentence is true about a Matrix Organization Structure?
A. It is based on an organization being divided up into smaller groups (departments)
with specific tasks or roles.
B. It allows for much more autonomy among groups within the organization.
C. It enables employees to share their knowledge across the different functional
divisions, allowing for better communication and understanding of each function’s
role.
D. It is a blend of functional structure and a flat structure.
5. You are a human resource Manager in a small growing company and have been asked to
take up the issue of reviewing the organization structure. How would you approach this
assignment?
6. State the functions of organization structure
7. Discuss the three types of organizational structures and state the advantages and
disadvantages of each.

Practical Question
Kairu and Kairu is a Limited company in export business, for years, they have been exporting
their products to the US. Recently they expanded their market to Europe and Asia.

1. Suggest the appropriate type of the new organizational structure for the company to
incorporate the new changes.
Divisional Organizational structure
2. Draw the plan of the structure.

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10.3.3.4 Tools, Equipment, Supplies and Materials

 Lecture Hall
 Functional Office
 Classroom
 Textbooks
 Computer

10.3.3.5 References

Armstrong, Michael. (2001). Human Resource Management Practice. Kogan Page Ltd (7th
Ed.), London.
Dr. Jaime Klein. (2017). Elements of an Effective Organizational Structure. Colorado State
University. USA.
N.A, Saleemi. (2005). Principles of Management. Acne Press: Kenya.
Walczak, S. (2005). Organizational Knowledge Management Structure. The Learning
Organization.

©TVET CDACC 2020 404

10.3.4 Learning Outcome No 3: Monitor changing trends in the market place
10.3.4.1 Learning Activities

Learning Outcome No3: Monitor changing trends in the market place

Learning Activities Special Instructions

3.1. Identification of market segment. Observation

3.2. Identification of lead players in that market segment. Projects
3.3. Familiarize with the scope of organization in the market Review of portfolios
segment.
3.4. Bench marking of operations against the lead players in
the market.
3.5. Identification and documentation of market trends
3.6. Preparation of report and recommendation given to
management.

10.3.4.2 Information Sheet No 10/LO3: Monitor changing trends in the market place

Introduction
This learning outcome covers bench marking operations, market trends identification, and
scope of organization in market segment, consumer buying trends and touches on benefits of
organization in identifying market trends.

Definition of key terms

Bench marking: This is the act of doing comparison of your processes, product and services
with those of similar organization to yours that is hailed to be leaders in such aspects of
operations or even does much better than other organization.

Market segments: Market segment is dividing the targeted potential customers into groups or
parts basing on the differentiated factors and characteristics. The created groups comprise the
customers with similarities in response to the market strategies applied and they share
characters such as common interest, needs and same location.

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Content/Procedures/Methods/Illustrations

MARKET SEGMENT
Identifying market segments
Creating target customer segment involves the following steps and processes:
 Generate a list of potential target segments or groups.
 Reduce the list of potential customers to a number that is likely to be most satisfied
groups and repeat the two steps to identify a single target group.
 Select the target customer group which has the most potential percentage.
 Update the selected target group through market research.

Identify lead player

A market leader possesses the largest market share and enjoys biggest sales in the given
industry. They are also the first developers of the various products and services in the market
and a good example can be Apple Company.

Scope of organization in market segment.

An organization conduct market segment for various reasons.
 Market segmentation answers the question what is the consumer problem? By defining
the needs of the customers, the organization can be able to match the products and
services to meet the customer needs.
 Through market segments the organization is able to maximize production and sales to
a large number of customers.
 The company produces specific products that meet the requirements and likes of target
groups.
 It helps the firm to only target the customers who are satisfied and are happy a consumer
of their products and services

Benchmark Operations
Bench mark operations against the lead players in the market
By bench marking your company against the lead player is it easy to discover and learn more
on the position of your company in the market and able to know more potential opportunities
in the market. By gaining an understanding on the level of performance in the market, then
focus on improving your firm and set objectives accordingly.

Market trends
Trends are particular directions in which financial market is following. The simple way to
identify the market trends is by looking at the movement of the trends. When the market is
moving up it is termed as Bullish trend, and when the market is moving down it is refereed as
Bearish trend. The market can also move within a range that is neither Bullish nor Bearish
rather they are falling sideways. Thus, there are three movement trends in a market.

The trend can be identified by using different kind of technical analysis. First by use of trend
lines and secondly by applying technical indicators where the trend lines is the most commonly
applied method and it is effective in verifying the movements.

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Consumer behaviour: This is the process of studying the consumer’s attitude, emotional,
mental, character and behavioural responses and applying them in production and disposal of
products and services in order to fulfil the customer’s needs and satisfaction. Consumer
behaviour draws heavily from several various fields such as psychology, biology, chemistry
and economics.

Importance’s of identifying market trends to the organization

 The ability to know when a market is moving is helpful.
 Identifying market movement trend will help to know
 It helps to capture market opportunities, to test risks and find innovation.
 Managers are able to respond to forces on time and react for their own advantage.
 The company is certain to act with confidence and consider uncertainties that might
appear.
 It brings great rebalancing through better innovations of product design, market
infrastructures and value chains.

Report
Preparation of report and recommendation given to management
i. Report involves writing all the outcome from your investigation and analyzing the
information or the problem and finally recommending and suggesting necessary
solutions. The step followed in preparation of report to be handed to management will
be as follows:
ii. Deciding on reference terms of the report
iii. Planning your investigation that is the procedure to be followed during the research
process.
iv. Doing research of information needed for the report by reading documented materils,
observation or interview people.
v. Develop the structure to use for the report this is the format of the report.
vi. After deciding on the structure to use, write the initial part of the report with information
gathered.
vii. Do analysis of your findings and interpret what you have found by doing conclusion of
your report.
viii. Make clear recommendations of what you think will help solve the problem in the
report.
ix. Write executive summary and list the table of content, the executive summary should
be about 200 words long to make it simple to go through.
x. Combine all the sources referred to write the report, use the APA referencing style.
xi. Revise the draft report to ensure no errors and you can decide to have someone check
your report on behalf.

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Conclusion
This learning outcome covered bench marking operations, market trends identification, and
scope of organization in market segment, consumer buying trends and touches on benefits of
organization in identifying market trends.

Further Reading

Read more on identification of marketing trend from Peter Bisson, Elizabeth, S. Patrick and
Mckinsey & Company, (2010) “Global forces; an introduction. Mcknsey quarterly

10.3.4.3 Self-Assessment

Written assessment
1. Human resource manager of Upendo companies wanted to know what might cause the high
number of resignations in the firm. The following are causes of resignation which of the
following is not?
A. Lack of proper compensation
B. New employees in the firm
C. Change in management
D. Unrealistic business objectives
2. A consultancy firm is doing research on ways through which an employee and employer can
part ways. Some of the research findings include as listed below except one, which one is not
part of parting way?
A. Discipline
B. Transfer
C. Retirement
D. Termination
3. The salary and regulation commission advocates that the employee’s salary should be done
third party payments statutory deductions. Among the following below which is not one of
the statutory deductions?
A. Income tax (PAYE)
B. National Hospital Insurance Fund (NHIF)
C. National Social Security Fund (NSSF)
D. Cooperative deductions
4. You have been hired as human resource advisor of Kwekwe training institute and want to
conduct personnel research on the performance of the organization. What should be the
characteristics of a good personnel research?

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5. A committee in which you chair want to develop new human resource policies. As the chair
of the committee give the main contents to be included in the employment policy?
6. The management of Keroche Company has discovered an employee who has been
attending to their job late and drunken even after several warnings. Explain the disciplinary
procedure to be followed and used by the organization to dismiss the employee in order to
avoid legal issues?

Practical Question
You are required to
1. Demonstrate a job interview for a human resource candidate
Resources
1. Office
2. Tables and chairs
3. Documents
4. Book and a pen

10.3.4.4 Tools, Equipment, Supplies and Materials

 Human resource procedures document

 Labour laws manual
 Organization policy manual
 Writing materials
 Laptop
 Internet
 Interviewing panel
 Furniture (tables and chairs)

10.3.4.5 References

Armstrong, M. (2009). A Handbook on Human Resource Management Practice, 11th ed.

Palgrave
Peter Bisson, Elizabeth, S. Patrick and Mckinsey & Company, (2010) “Global forces; an
introduction. Mcknsey quarterly.

Wiefels, P. (2002). The Chasm companion. New York. Harper Business

©TVET CDACC 2020 409

10.3.5 Learning Outcome No 4: Identify and implement productivity improvement
methods
10.3.5.1 Learning Activities
Learning Outcome No4: Identify and implement productivity improvement methods

Learning Activities Special Instructions

3.1. Familiarize with the market trend report and Observation

recommendations. Projects
3.2. Establishment of existing productivity gaps. Review of portfolios
3.3. Identification of productivity improvement methods.
3.4. Effecting of improvement methods.

10.3.5.2 Information Sheet No10 /LO4: Identify and implement productivity

improvement methods

Introduction
This learning outcome covers market trend and recommendation report, the existing market
productivity gaps, the productivity gaps improvement methods and effecting of improvement
of market productivity methods.

Definition of key terms

Productivity gaps: This is a term used to describe the difference across countries in the
measurement of labour input contribution to the output capabilities as compared to the
country’s main competitors. It implies that productivity measures the efficiency of the factor
inputs such as labour and capital employed in production process. The output or outcome is
used to compare the productivity of the country to the other country whom is the main
competitor in the market.

Market trend report: It provides an insight tendency at which the financial markets change
over time towards a particular direction. Market trend applies to all tangible items and all
markets where prices and volumes traded change.it is classified into three parts as follows: long
term referred to as secular, medium term also known as primary market trend and short term
termed as secondary trend.

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Content/Procedures/Methods/Illustrations

MARKET TREND REPORT

Preparation of marketing report

A marketing report is like a plan for the market attention effort. Preparation of marketing repot
is done in three main parts.

Part 1 Evaluating Marketing Efforts

i. First step to consider is the reason for performing Market research and what information
is required.
ii. You need to identify your target customers that is the market
iii. Since the customer seek products to solve their problem then identify what problem it is?
iv. After identifying the problem include the solution to the problem and establish how well
you will solve the customers’ problem
v. At this step examine the competitors’ efforts in solving the customer problem
vi. Identify your current marketing strategy for your product.
vii. After this evaluate the effectiveness of your strategies
viii. Finally summarize your conclusion on the marketing report.

Part 2 Writing Executive Summary

In this section, provide a summary of the research of your marketing.
i. Give brief description of your company in relation to the location, employees and or
partnership.
ii. Come up with the objective of your marketing research.
iii. Analyze how you are reaching the target market from your research.
iv. In your marketing data display the figures representing the potential customers in your
business.
v. Conclude on any problems faced during the research of incomplete information.

Part 3 Finalizing the Market Report

i. It is the final market report writing stage. Do a future forecasting trends by analyzing
whether it suits in case of uncertain changes?
ii. It is important to work out on your return on investment, it determines whether it is
worth to utilize capital and gain returns from the investment.
iii. Conduct research and compile the final outcome, which can be done in the internet or
researching from other businesses and competitors.
iv. After completing the marketing report apply it to make improvement in the company.

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Productivity gaps
Establishment of existing productivity gaps
 Productivity gap as defined above it can be identified through the following highlighted
points.
 Low rates of return on capital investment
 Low rates of spending on research and development meaning that there is no innovation
and technology applied.
 Over regulation of industry and unhealthy competition in business.
 Unskilled and semi-skilled labour force.

Methods productivity improvement methods

 Improving productivity of the organization definitely results to high profitability. The
methods can include:
 Being efficient by analyzing daily operations of the business to identify possible source
of inefficiency.
 Ensure the employees have the right tools and equipment needed for better
performance.
 Provide good support and have the employees understand the core objectives of the
organization.
 Try to ensure the workforce is happy with the organization and are well engaged with
each other.
 Create a good working environment for the employees free from, distractions of any
manner.

Measures for productivity improvement

 The productivity improvement measures include:
 Technological and scientific measures which are as follows:
 Improved raw materials, better technology, good working conditions, scientific
recruitment and training of employees and production planning and control.
 The motivational improvement measures are workers participation in management and
running of the company and offer incentive scheme payment.
 Psychological measures used to improve productivity will include job enlargement and
job enrichment and maintaining harmonious human relations.
 The popular modern measures of productivity improvement are quality circles and
flexi-time

Conclusion
This learning outcome covered market trend and recommendation report, the existing market
productivity gaps, the productivity gaps improvement methods and effecting of improvement
of market productivity methods.

©TVET CDACC 2020 412

Further Reading

Read further on market trend report from 8 Ways to Increase Productivity in the Workplace.
(2018, August 09). Retrieved July 17, 2019

10.3.5.3. Self-Assessment

Written assessment
1. Human resource manager of Watumishi Shoe Company is in dilemma due to the financial
market changes happening recently. This means the business lacks one important document
which will help the company solve this problem, what is the company missing?
A. Productivity gap
B. Market trend report
C. Market analysis
D. Labour shortage
2. A Company has hired a new manager for its new branch to be launched, he is planning for
potential strategies for the growth of this company. Which of the following is not part of the
growth strategies?
A. Investigate investors
B. Create a marketing plan
C. Plan a grand opening
D. Target one community
3. A consultancy firm is doing research on ways through which an employee and employer can
part ways. Some of the research findings include as listed below except one, which one is
not part of parting way?
A. Discipline
B. Transfer
C. Retirement
D. Termination
4. The salary and regulation commission advocates that the employee’s salary should be done
third party payments statutory deductions. Among the following below which is not one of
the statutory deductions?
A. Income tax (PAYE)
B. National Hospital Insurance Fund (NHIF)
C. National Social Security Fund (NSSF)
D. Cooperative deductions
5. An existing business is facing external threats, as a human resource specialist highlight the
factors that the organization need to focus on to solve these challenges?

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6. State the internal factors within an organization that an entrepreneur should consider before
starting a business?
7. An entrepreneur has a business opportunity and is seeking advice on the best model to use
to analyse the market before venturing into the business opportunity. Advice the entrepreneur
on SWOT analysis?

Practical Question
You are required to;
1. Demonstrate an orientation process for newly hired employees.
Resources
1. Note taking materials
2. Projector
3. White boards
4. Laptop
5. Mark pens
6. Chairs and audience

10.3.5.4 Tools, Equipment, Supplies and Materials

 Note taking materials

 Projector
 White boards
 Laptop
 Mark pens
 Chairs and audience

10.3.5.5 References

Blake, Martins, Shehan (2015). “5 Tips to grow start-up using SWOT analysis” Sydney
Dess, Gregory (2018). Strategic Management, United States.
Mason L. (2018), Contract Administration Chartered Institute of Procurement & Supply, p116

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10.3.6 Learning Outcome No 5: Facilitate change management at the workplace
10.3.6.1 Learning Activities

Learning Outcome No 5: Facilitate change management at the workplace

Learning Activities Special Instructions

5.1. Definition of change management. Observation

5.2. Identification of changes to the organization operations. Projects
5.3. Identification of barriers to change and the mitigation Review of portfolios
measures.
5.4. Identification of short term and long-term strategies and
deliverables.
5.5. Communication of change to the affected, their views
sought and incorporated to the strategies and deliverables
where applicable.
5.6. Identification of change agents and building of and
capacity.
5.7. Reporting on the monitoring and evaluation of change
management.

10.3.6.2 Information Sheet No10/LO5: Facilitate change management at the workplace

Introduction
This learning outcome covers change management at the workplace, how to handle changes
with the least resistance, strategies for handling the changes and how to report and monitor on
the progress of the change implementation strategies.

Definition of key terms

Change management. This is a systematic approach that involves dealing with the transition
or transformation of organizational goals, processes or technologies and core values.

Capacity: Judge and Elenkov (2005) Organizational capacity for change (OCC) is defined as
a broad and dynamic organizational capability that allows the enterprise to adapt old
capabilities to new threats and opportunities as well as create new capabilities.

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Content/Procedures/Methods/Illustrations

CHANGE MANAGEMENT

Theories of change management

a) Kotter’s change management theory
This change management theory is one of the most popular and adopted ones in the world. It
is divided into eight stages where each one of them focuses on a key principle that is associated
with the response of people to change.
 Increase urgency: Create a sense of urgency among the people so as to motivate them
to move forward towards objectives.
 Build the team: Get the right people on the team by selecting a mix of skills, knowledge
and commitment.
 Get the vision correct: Take into account not just the strategy but also creativity,
emotional connect and objectives.
 Communicate: Openly and frequently communicate with people regarding the change.
 Get things moving: Get support, remove the roadblocks and implement feedback in a
constructive way.
 Focus on short term goals: Set small goals and achievable parts is a good way to
achieve success without too much pressure.
 Don’t give up: Be persistent while the process of change management is going on, no
matter how tough things may seem.
 Incorporate change: Reinforce and make it a part of the workplace culture

b) ADKAR Model
ADKAR model or theory of change is a goal-oriented. This makes it possible for change
management teams to focus on activities that are directly related to the goals the company is
trying to achieve.
ADKAR Model stands for:
 Awareness of the need and requirement for change
 Desire to bring about change and be a participant in it
 Knowledge of how to bring about this change
 Ability to incorporate the change on a regular basis
 Reinforcement to keep it implemented and reinforced later on as well.

c) Lewin’s Change Management Model

Lewin’s Change Management Model is one of the most popular, most accepted and most
effective models that make it possible for companies to understand organizational and
structured change. This model consists of three main stages which are: unfreeze, change and
refreeze.
 Unfreeze: The first stage of the change process is the preparation for change. Here,
employers must get prepared for the change and explain to people why the change is
necessary. As most people are resistant to change, this step helps to break this status
quo.

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  Change: In this stage, the change process takes place. Good leadership and effective
employee communications are crucial for this step.
 Refreeze: In this stage, the change has been accepted. This is the time when the
employees start going back to their normal pace and routine. This last step requires
leaders to make sure that the changes are adopted and used even after the change
management objectives have been achieved.

Identify changes to operations

The scope of the change management programs can range from all operations within an
organization to one area of operations e.g. ICT changes. This therefore means that it should be
clear before change programs are launched what section of the organization’s operations they
will affect as this affects the planning process, communication strategy to be used, strategy of
change to employ among other factors

Identification of barriers to change and the mitigation measures.

 Lack of Employee Involvement: This is where management decides to implement change
programs without involving employees who these changes affect and who will be relied on
to implement these changes on a day to day basis which results in resistance to the changes
This can be mitigated by involving employees in the change programs before they are
launched.
 Lack of Effective Communication Strategy: Absence of an effective communication
strategy breeds grapevine and miscommunication on the changes, their objective and
employee roles. To mitigate this, an effective communication plan should be in place even
before the changes are launched, throughout the changes and in the reporting of the end of
the change programs.
 Insufficient Planning: This is launching change management programs without having
thought through them well which results in inefficiencies in executing the program which
increases the failure rate of the program. To avoid this, proper planning and research should
be carried out before programs are rolled out.
 Organization Complexity: This refers to the individual dynamics that affect different
organizations depending on their structures, size, geographical scope, culture clashes of its
employees, financial muscle, industry sector among other factors. This can be mitigated
through prior thorough planning.
 Resources scarcity. Most change programs require a lot of financial resources to implement
and while this can be planned for at the beginning of the program implementation, there
are unforeseen events that may happen which may be costly to navigate. This can be
mitigated via ensuring there is a surplus budget set aside for the programs.

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Communication of change to the affected, their views sought and incorporated to the strategies
and deliverables where applicable. Communication of changes to affected parties cannot be
over emphasized. In fact, the communication strategy employed or a lack of it can lead to the
failure of change management. This is so because it will not be clear what the changes are, who
they affect, and how long they will last, who is supposed to implement them and the benefits
of the changes. To avoid the fierce opposition to change that can be brought about by
employees being left in the dark to imagine matters without clarity from management, it is of
paramount importance that an effective communication strategy that is uniquely designed to
suit individual organizational needs is selected and communication lines remain open for
further questions and clarifications.

Identify change agents

This is the process of identifying the change champions in an organization. It is one of the ways
of quashing resistance to change since the management will observe who the employee leaders
are whether those who lead due to the office roles they hold or the unofficial leaders who wield
power despite not holding positions of influence. Management should seek through all means
to win over these employee leaders as they will likely convince other employees to accept the
changes without much resistance. This is a critical step in the change management process as
leaving out key characters can lead to failure of the change programs. Once the change agents
are identified across the organization, they can then form a subcommittee which then is
responsible for championing for the change, monitoring the implementation of change
programs and reporting on any challenges encountered to the management.

Reporting on the monitoring and evaluation of change management.

Within the course of the change programs execution, it is important that monitoring and
evaluation of the success of the programs is done. This can be done through collecting feedback
from employees, team leads and the change agent champions. This helps in evaluating whether
the objectives of the change programs are being met and if they are not being met, how the
objectives and the strategies of meeting them be relooked into and clarified. This feedback is
then put in a report and presented to management so that the gaps are addressed going forward.

STRATEGIES

Short term and long-term strategies

a) Short term strategies: Refer to strategies that can be done within a period of 12 months or
less. These would be things like identifying change agents and working with them to
champion for change, identifying an effective communication strategy, getting the top most
executives to support the change programs and engaging employees to make them
understand the importance of the changes, why they should support the changes and what
rewards and benefits will accrue to them as a result of collabourating and implementing the
changes.

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b) Long term strategies involve continuous monitoring of the implementation of the changes.
This is to identify the gaps in implementation and correct them in good time, address
challenges and barriers that maybe hindering the change programs and coming up with
mitigation measures. Another long-term strategy would be ensuring that communication
throughout the change process remains honest, accurate, simple and understandable to all.

Conclusion
This learning outcome covered the change management process, its importance in an
organization, barriers to the process and ensuring that change management is done in an
effective manner.

Further Reading

Read more on Metrics of measuring change program success and Objectives of change
management

10.3.6.3 Self-Assessment

Written assessment
1. As the team lead in charge of implementing a change management program at your
organization, which among the below would not be a hindrance to change that you would be
on the lookout for?
A. Employee resistance
B. Resources scarcity
C. Management supporting the change
D. Time constraints
2. A change management program is scheduled for implementation at the beginning of your
company’s next financial year. It involves moving away from the Brick and Mortar way of
doing banking to creating and signing up customers on digital channels of banking. Among
the core teams that will be responsible for implementing this shift are the ICT and Customer
care teams in charge of account opening and customer service. Which of the below would
be a good first step to undertake before the program is designed and rolled out?
A. Roll out program and deal with complaints later
B. Get the two core teams together for a brainstorming session.
C. Get financing support for the change program
D. Draft program and send it to the teams to implement

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3. Disputes are bound to arise when change is being implemented at the workplace. This is so
because human beings generally prefer to stay in familiar comfortable spaces and thus any
changes to this is resisted. As an expert in conflict resolution mechanisms, which of the
below would not be a good way to resolve conflicts and would lead to an escalation of the
dispute?
A. Call for meeting between warring factions and get to the bottom of the matter.
B. Ignore the major conflict brewing and focus on delivery of change program.
C. Get a neutral party to mediate in the dispute.
D. Mediate dispute and clarify any unclear areas that could have led to dispute.
4. Implementing a change program benefits an organization in more ways than one. However,
the change should be done cautiously as it can backfire and fail thus causing the
organization more harm than good. As an expert in the change management program, what
is not a benefit of implementing a change program?
A. Can lead to increased customer base
B. Leads to financial expenses by organization.
C. Leads to a better customer experience
D. Allows organization to better compete with competitors
5. What are some of the benefits of implementing changes to operations in an organization?
6. What are some communication methods that an organization can employ to champion for
change and pass across information from top down?
7. You are the Head of Human Resources in company A and you have been identified as the
lead of the team leaders who are tasked with implementing a change management program in
your organization. What are some of the consequences you would imagine that can arise if you
fail at championing for the success of the change programs?

Practical Question
You are required as the HR team lead to:
1. Design an organization restructuring email communication to 10 staff that are going to have
their roles declared redundant. Assume that a face to face meeting has not been held due to
time constraints.
Resources
1. Paper
2. Pen
3. Internet enabled
4. Desktop/Laptop

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10.3.6.4 Tools, Equipment, Supplies and Materials

 Paper
 Pen
 Internet enabled
 Desktop/Laptop
 Note taking materials
 Projector
 White boards
 Laptop
 Mark pens
 Chairs and audience

10.3.6.5 References

Armstrong, Michael. (2001). Human Resource Management Practice. Kogan Page Ltd (7th
Ed.), London.
Dr. Jaime Klein. (2017). Elements of an Effective Organizational Structure. Colorado State
University. USA.
N.A, Saleemi. (2005). Principles of Management. Acne Press: Kenya.
Walczak, S. (2005). Organizational Knowledge Management Structure. The Learning
Organization.

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10.3.7 Learning Outcome No 6: Build a high-performance culture
10.3.7.1 Learning Activities

Learning Outcome No 6: Build a high performance culture

Learning Activities Special Instructions

6.1 Definition of high performance culture. Observation

6.2 Definition of organization culture reviewed and prefered Projects
culture. Review of portfolios
6.3 Clarification of business goals.
6.4 Definition of employee responsibility as per organization
procedures.
6.5 Inculcation of prefered culture as per organizational
values.
6.6 Facilitation of employee continous improvement.
6.7 Definition of Forster work environment conducive for
creativity and innovation

10.3.7.2 Information Sheet No 10 /LO6: Build a high-performance culture

Introduction
This learning outcome covers performance culture in organizations and more so a high-
performance culture, how to attain it, how to measure it and how to ensure the working
environment is conducive for this culture.

Definition of key terms

High performance culture: This is an organizational code of conduct and norms that
encourage ambitious attainment of goals and objectives.Average performance is not tolerated
here people have to meet and surpass their key performance indicators(KPI’s)

Organization culture: This are the behaviours, policies and acceptable norms that point
towards th organization’s way of life for its employees. Culture can either be good or bad and
in case it is bad, it requires to be changed so as to support attainment of organizational goals
and objectuves.

Employee responsibility: This is the taking up of initiative for work and owning one’s work
in an organization.Only when employees fully own their roles and responsibilities can we say
they are motivated to attain their KPI’s.

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Content/Procedures/Methods/Illustrations

CULTURE
Types of high perfomance culture
There are different types of organizational cultures and one of them is the high performance
culture.Below is a peek into the other types of organization cultures in the modern workplace.
 The Clan Culture: This culture is rooted in collaboration. Members share
commonalities and see themselves are part of one big family who are active and
involved. Leadership takes the form of mentorship, and the organization is bound by
commitments and traditions. The main values are rooted in teamwork, communication
and consensus.
 The Adhocracy Culture: This culture is based on energy and creativity. Employees
are encouraged to take risks, and leaders are seen as innovators or entrepreneurs. The
organization is held together by experimentation, with an emphasis on individual
ingenuity and freedom. The core values are based on change and agility
 The Market Culture: This culture is built upon the dynamics of competition and
achieving concrete results. The focus is goal-oriented, with leaders who are tough and
demanding. The organization is united by a common goal to succeed and beat all rivals.
The main value drivers are market share and profitability.
 The Hierarchy Culture: This culture is founded on structure and control. The work
environment is formal, with strict institutional procedures in place for guidance.
Leadership is based on organized coordination and monitoring, with a culture
emphasizing efficiency and predictability. The values include consistency and
uniformity.

Reviewing of organization culture

For every organization, their culture can be fitted in one of the 4 core types of cultures or a mix
of two types. In order t identify the type of organizational culture in a company, one looks at
what the leadership of the company emphasises most.Is it consistency?Is it innovation and
creativity?Is it teamwork and communication or is it profits and gaining the biggest market
share?Once this has been identified correctly, one is able to fit the organization culture into the
main culture types observed in the modern work envrionmnet.

Another way to determine type of culture would be to observe and document what the
organization punishes most punitively. This would be a pointer as to the type of culture they
have or hope to have in the future if the company is in the process of a culture change.The
policies of an organization can also point towards their culture as they would show what the
heart and soul of the company is.It is not expected that a profit making entity would have the
same culture with a non profit entity.

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Inculcation of prefered culture
 Quantitatively measure your current cultural values. The first step to culture change is
knowing where your current culture stands; that is, what employees believe your
organization’s current values are. This will allow you to get a good idea of how much
change is needed and enable accountability.
 Intentionally align culture, strategy, and structure. This is an important step as it helps
to identify what areas of the organization’s culture, strategy and structure need to be
changed to better suit what the company wants. Aligning the three means that there is
unity of purpose and employees can then focus on implementing the culture change.
 Ensure staff and stakeholder participation. To neutralize any resistance to change that
maybe encountered once a culture change program is instituted, it is important to loop
in employees and all concerned stakeholders in the plans so that they are in the know
of what is expected of them and the outcome the changes are expected to bring about.
 Model culture. This should be done from the top down so that when employees see that
even the company executives have changed, they are motivated to also own the change
program and implement it.
 Evaluate progress. Frequently monitor the progress of the culture change program
identifying areas of weakness that can be corrected going forward.

Goals

Components of business goals.

 Specific and not vague at al so that everyone knows what they are working towards and
what is expected of them.
 Measurable.Gals should have specific ways of measuring their achievement in the form
of deliverables and KPI’s
 Attainable.The goals should be ambitious but not too ambitious so as to be unattainable
despite workers best efforts.
 Relevant.They should be suitabnle for the organization depending on its industry sector,
its own internal dynamics and its mission and vision.
 Time based.Each goal should be given a time frame within which it is expected that
delivery of the same will have been done.

Employee responsibility towards achieving business goals.

 Employees are the actua workers on the ground and so they are the ones who implement
the business goals on a day to day basis.
 Solving of day to day challenges presented by the operations of the business as tey seek
to attain the goals and objectives.
 Safeguarding the company goals by teaming up together to ensure the goals are met.
 Coming up with ideas that are creative that can help fasten the attainmnet of company
goals.
 Meeting all their set performance targets.

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  Being discplined and following all the company policies and procedures.
 Providing exemplary customer service to clients to retain current clients and attract
more.

Measures of continous improvement

Some use “kaizen” as a synonym for continuous improvement. Kaizen is a compound word
made up of two Japanese works, kai meaning change and zen meaning good. The three main
points of kaizen:
 Feedback: A core principle of the process that involves self-reflection.
 Efficiency: Identify, reduce or eliminate anything that gets in the way of the process.
 Evolution: Kaizen depends on incremental, continuous development instead of a great
leap forward.

Other measures incude;

 Incremental Change: Slow and steady progress is the most innovative.
 Employees Provide Ideas: Rather than management, the ideas for change should come
from the workers.
 Incremental Change Is Cheap: Small changes are likely not as costly and will not impact
the budget severely.
 Workers Take Ownership and Accountability: By giving employees ownership of the
process, they’re more invested and motivated.
 Improvement Is Reflective: The strategy of continuous improvement only works if
there’s dialogue, feedback and open communications between workers and
management.
 Improvements Can Be Measured and Repeated if successful.

Clarification of business goals.

a) This happens after the goals have been set and the process of achieving them rolled out,
then frequently assessement of the progress made is made.This entails identifying the
challenges the team is facing in achieveing the goals, coming up with mitigating factors,
and reclarifying if there is evidence that the tea is out of line or has forgotten what needs
to bed one.

Work environment
Components of a conducive work environmnent
 Availing of office desks, chairs and other comfortable stationaries should be availed to
the workers.
 Washroom facilities for either gender should always be clean and dry.
 Provision of clean drinking water.
 Well aerated office spaces.
 Clean and dusted office spaces.
 Little or no noise in the working areas.
 Good culture that supports open and transparent communication.

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  Zero tolerance to physical, verbal and sexual abuse.
 Observation of fairness and equity by all staff without showing favoritism to any
individual.
 Clear feedback on performance.
 Opportunities for learning, growth, training and career progression.

Conclusion
This learning outcome covered performance culture in organizations and more so a high-
performance culture, how to attain it, how to measure it and how to ensure the working
environment is conducive for this culture.

Further Reading

Read more on Qualities of a high-performance work culture and Indicators of toxic work
cultures.

10.3.7.3 Self-Assessment

Written assessment
1. It has been said by organizational culture experts that strategy eats culture for breakfast. It
has further been said that a good culture that supports productivity is key towards an
organization meeting its goals and objectives. What would you say is not part of a good
organizational culture?
A. Absenteeism
B. Meeting targets set
C. Teamwork
D. Supportive supervisors
2. A high performance culture while being a good thing for a profit-making entity also has
some downfalls if left unchecked which could spell doom for the company. What would you
say is a pitfall the company can fall into?
A. Motivated employees
B. Surplus incomes
C. Toxic work spaces
D. Goal attainment

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 3. The Kaizen is a Japanese philosophy applicable to the work environment which can be used
to measure continuous improvements within the organization towards the attainment of its
goals and objectives. What as an expert in this field would you reject as being part of the Kaizen
philosophy?
A. Feedback
B. Efficiency
C. Evolution
D. Change
4. Cultural diversity is an upcoming industry trend that has been fueled by globalization. This
therefore means that an organization is likely to find itself with workers from any corner of the
globe thus creating a culture melting point at the office. This can lead to conflict due to the
various ways each culture is accustomed to doing life. What would be one way of helping
create a more tolerant and inclusive workforce?
A. Train workers on inclusion and diversity
B. Only hire locals
C. Ignore cultural diversities
D. Let workers solve disputes as they arise without intervention from management
5. What are some of the benefits of having a business goal?
6. What are some of the physical requirements for a working environment to be classified as
conducive for work
7. Organizations should strive for what is considered a "healthy" organizational culture in order
to increase productivity, growth, efficiency and reduce counterproductive behavior and
turnover of employees. List the factors that point towards a healthy organization culture.

Practical Question
You are required to
1. Prepare a Key Performance Indicator for a Human Resource Officer

10.3.7.4 Tools, Equipment, Supplies and Materials

 Pen, Paper or a book

 Internet enabled phone/laptop/desktop for research purposes
 Books on performance appraisal
 Note taking materials
 Projector
 White boards
 Laptop
 Mark pens
 Chairs and audience

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10.3.7.5 References

Schein, Edgar H. (2004). Organizational culture and leadership (3rd ed.). San Francisco:
Jossey-Bass
Wiefels, P. (2002). The Chasm companions. New York. Harper Business

Will Kenton, (2020). Market Leader. Investopedia, www.investopedia .com/terms/m/market-

leader.asp

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10.3.8 Learning Outcome No7: Develop a knowledge management system
10.3.8.1 Learning Activities

Learning Outcome No7: Develop a knowledge management system

Learning Activities Special Instructions

7.1. Definition of Knowledge Management System. Observation

7.2. Identification of the needs of an organization for a Projects
knowledge management system. Review of portfolios
7.3. Determination of the functionality of the data base.
7.4. Determination of the components of the data base.
7.5. Sourcing for software that meets the needs of the
organization.
7.6. Identification, collation and documentation of data on the
knowledge that employees possess.
7.7. Uploading data on the knowledge that employees possess.

10.3.8.2 Information Sheet No10/LO7: Develop a knowledge management system

Introduction
This learning outcome covers the knowledge management function in an organization,
identifying needs of an organization, components of database, sourcing for software to suit
organization needs and uploading of data into the system.

Definition of key terms

Database: This is an organized collection of data, generally stored and accessed electronically
from a computer system.
Knowledge management system: This is the helping people utilize knowledge to better
achieve tasks at the workplace.

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Content/Procedures/Methods/Illustrations
Knowledge Management Need
This is the identifying of knowledge needs in the organization and coming up with a plan on
how to help employees better apply their skills and knowledge to achieve their goals and
objectives at the workplace while meeting their Key Performance Indicators.

Identification, collation and documentation of data on the knowledge that employees

possess.
Identify data that needs to be stored in the data base system which according to the Employment
Act (2007) includes the employment contract and offer letter, copies of Identity card, NHIF,
NSSF, KRA Pin, recommendation letters from previous employers, copies of education and
professional qualifications, next of kin information, emergency contacts among other
documents. The education and professional certificates provide insight into knowledge the
employee possesses. Such information can also be acquired from the previous work
experiences of the employees and by having them take tests that gauge their competencies in
their relevant areas of expertise.

Employees can also be given questionnaires to fill that would have specific questions tailor
made to derive data from them as pertains their skills, knowledge and competencies. Another
method to collect this data would be through interviews though this would be tedious work for
a large sized organization as it would involve either talking to each employee face to face or
through making a telephone call.

Collation of data is the process of arranging the data in a sequential manner either by
alphabetical order or any other decided sequence which is makes it easy to store and retrieve
the data when need arises without much work. Data can be collated in many ways not only
alphabetically. It can also be done per department, per type of qualifications workers have
where you lump together all those with degrees in business together, those with medical
degrees together etc. Documentation of the data is the process of then arranging the data
collected at the research stage where the knowledge employees possess was being collected
from various sources.

Data base
Functionalities Data base
 Data Dictionary Management. It stores definitions of the data elements and their
relationships (metadata) in a data dictionary.
 Data Storage Management. Creating and managing the complex structures required for
data storage, thus relieving you from the difficult task of defining and programming the
physical data characteristics.
 Data Transformation and Presentation. Transforms entered data in to required data
structures. This relieves of the chore of making a distinction between the logical data
format and the physical data format.

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  Security Management. It creates a security system that enforces user security and data
privacy. Security rules determine which users can access the database, which data items
each user can access, and which data operations (read, add, delete, or modify) the user
can perform.
 Backup and Recovery Management. It provides backup and data recovery to ensure
data safety and integrity.
 Data Integrity Management. It promotes and enforces integrity rules, thus minimizing
data redundancy and maximizing data consistency.

Components Data base

 Hardware. It refers to all of the system’s physical devices like computers (PCs,
workstations, servers, and supercomputers), storage devices, printers, network devices
(hubs, switches, routers, fiber optics),and other devices
 Software. Refers to system that manages all hardware components and makes it
possible for all other software to run on the computers
 People. Refers to the individuals that will be operating the computer systems.
 Procedures. Refers to instructions and rules that govern the design and use of the
database system. Procedures are another important component.
 Data. Covers the collection of facts stored in the database.

Software of A Data base

Database software is a utility or software program developed to create, edit, store, search,
extract, automate, and maintain database files and records. Database software management
system (DBMS) helps users to manage data in the form of structured fields, columns, and
tables.

Steps involved in sourcing for software

i. Needs Analysis.
ii. Apply Market Analysis.
iii. Supplier Review.
iv. Sourcing Strategy Development.
v. Implementation.
vi. Engaging with Suppliers and Reassembling Your Supply Chain.
vii. Review, Refine, Revise.

Uploading data on the knowledge that employees possess

After data collection has been done, data collated and documented, the data is then uploaded
in the system for use.

Uploading data is a three-stage process.

Stage 1: The data file must first be screened for errors. If the report produces no errors and the
user accepts all warnings reported in the file, the file can pass to the next stage.

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Stage 2: The data is plotted on graphs that allow the user to visually check for outliers. If the
user accepts the data and any outliers, the file can pass to the next stage.
Stage 3: The file is now ready for automatic uploading to the database; the user will be
prompted to confirm on screen.

Conclusion
This learning outcome covered the knowledge management function in an organization,
identifying needs of an organization, components of database, sourcing for software to suit
organization needs and uploading of data into the system.

Further Reading

Read more on types of software from Wiefels, P. (2002). The Chasm companions. New York.
Harper Business

10.3.8.3 Self-Assessment

Written assessment
1. You are the Head of Hunan Resource for your organization and are tasked with developing
the knowledge management system of the organization you work for. You are required to
defend to management why the system is needed so that they can approve the purchase of the
required system. Which among the listed below is not a known benefit of the knowledge
management system?
A. Spend less time recreating existing knowledge.
B. Get the information you need sooner (and with fewer headaches).
C. Make fewer mistakes.
D. Cheaper to buy
2. You are expected to collect data on employee knowledge they have. What is not a good place
to find this information?
A. Curriculum Vitae
B. Education certificates
C. Professional certificate
D. Identity card
3. The process of knowledge management is broad and has many steps that are followed. From
the below responses, select what should be the first step of the process.
A. Collection of data
B. Organizing
C. Summarizing
D. Data uploading

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4. Challenges in implementation of a knowledge system are expected in an organization. As
the team lead expected to facilitate the knowledge system management, what is not a challenge
you would expect to encounter?
A. Inability to recognize or articulate knowledge; turning tacit knowledge into explicit
knowledge
B. Geographical distance and/or language barriers in an international company
C. Limitations of information and communication technologies
D. Availability of financial resources
5. Highlight 5 components of a database
6. What are the benefits of a database system?
7. You are the Head of Hunan Resource for your organization and are tasked with developing
the knowledge management system of the organization you work for. You are required to
demonstrate the examples of knowledge management in organizations.

Practical Question/Case study

You are required to;
1. Prepare a survey to collect data from employees.

10.3.8.4 Tools, Equipment, Supplies and Materials

 Pen, Paper or a book

 Internet enabled phone/laptop/desktop for research purposes
 Books on performance appraisal
 Note taking materials
 Projector
 White boards
 Laptop
 Mark pens
 Chairs and audience

10.3.8.5 References

Schein, Edgar H. (2004). Organizational culture and leadership (3rd ed.). San Francisco:
Jossey-Bass
Wiefels, P. (2002). The Chasm companions. New York. Harper Business

Will Kenton, (2020). Market Leader. Investopedia, www.investopedia .com/terms/m/market-

leader.asp

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 CHAPTER 11: ENFORCE COMPLIANCE WITH LEGISLATIONS

11.1 Introduction
This unit covers management of regulatory compliance. The human resource manager has the
responsibility of enforcing and promoting compliance with legislations. It includes guiding on
enabling and related legislation, developing and implementing strategies to promote long-term
voluntary compliance, developing a culture of compliance in the organization and providing
strategic advice on compliance matters.

11.2 Performance Standard

Guide on enabling and related legislation, initiate development of compliance strategies,
provide strategic advice on compliance matters, customize relevant legislations and align
operations to comply with the legal requirements according to SOPs, as per the work place
policies, as per the employees’ records, as per the organization policy and as per the
organization procedures.

11.3 Learning Outcomes

11.3.1 List of Outcomes
a) Guide on enabling and related legislation
b) Initiate development of compliance strategies
c) Provide strategic advice on compliance matters
d) Customize relevant legislations
e) Align operations to comply with the legal requirements

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11.3.2 Learning Outcome No 1: Guide on enabling and related legislation
11.3.2.1 Learning Activities

Learning Outcome No.1 Guide on enabling and related legislation

Learning Activities Special Instructions

1.1 Identification of Legislations that require compliance by the Observation

organization. Projects
1.2 Interpretation of the legislations. Review of portfolios
1.3 Preparation and dissemination of brief to organization.

11.3.2.2 Information Sheet No.11/ LO1 Guide on enabling and related legislation

Introduction
This learning outcome covers the identification of Legislations that require compliance by the
organization, the interpretation of the legislations, and the preparation and dissemination of
brief to organization. These elements are a good guide to enabling related legislation in the
human resources and ensures compliance with the available legislations.

Definition of key terms

Legislation: It refers to collectively considered and promulgated laws by a governing body or
under a certain law making process.
Compliance: This is the process of ensuring that the organization as well as its employees
follow and abide by the laws, standard and ethical practices put in place for governance
purposes.

Enforcement: This is the process of implementing and ensuring compliance with the given
laws and legislations.

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Content/Procedures/Methods/Illustrations

IDENTIFICATION OF LEGISLATIONS THAT REQUIRE COMPLIANCE BY THE

ORGANIZATION.
Identifying the regulatory bodies that have control over the organization and regulations that
affect the organization is one brilliant way of moving towards compliance for the organization.
Standard rules and regulations enforced create a significant impact on the organizational
strategy, procedures and policies. To determine how the compliance will be attained is only
made possible when the legislations concerned are identified and their appropriateness vetted.
The identification process is therefore key in the organizational operations.

Procedure of identifying Legislations that require compliance by the organization.

i. Identify the regulation bodies and the regulations that the organizations need to comply
with.
ii. Assess the requirements stipulated by the relevant regulatory bodies as relating to the
organizational policies.
iii. Identify the implications of the regulations and how they will affect the business
policies and procedures.
iv. Determine the organizational requirements needed to confirm organizational
compliance activities.
v. Identify necessary resources for the regulatory requirements.
vi. Report the assessment of the legislation

Methods of identifying Legislations that require compliance by the organization.

Scrutiny of organizational health and safety (OH&Q) objectives: The objectives take into
account applicable requirements that are necessary for the organization’s legal requirements.
The organization can then plan on how to comply with the legal requirements as identified.

Compliance evaluation method: Periodic evaluation of the organization legal and other
requirements of the law will lead to identification of the legislation that are necessary to be
complied to.

Management review method: The occupational health and safety is a top management
priority. Therefore, reviewing the process and the results can help show the possible
compliance requirements in the organization.

Importance of identifying Legislations that require compliance by the organization

 Ensures the best move toward compliance
 Helps in identifying effective compliance policies and practices.
 It can help to educate the employees about the policies.
 It is a way of keeping informed regarding the upcoming compliance policies.
 Helps to identify issues that can possible turn to potential policy violations.

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Interpretation of the legislations.
Because legislations are written and codified, they effectively apply to various circumstances
in the organizations. It is however quite often that such written and codified rules are posed
with the challenges of clarity or precision. The language that is used in the legislations is
usually advanced thus can be obscure to some individuals or create ambiguity. This therefore
requires that the legislations be interpreted effectively for them to be applicable to the
circumstances and situations in the organization.

Procedure for interpretation of the legislations

i. Read the legislation in question
ii. Scan the circumstance in which the legislation will be applied to.
iii. Understand the goals of the organization and connect them to the circumstance.
iv. Look into the definitions of the key words of the legislation.
v. Understand the meaning of the legislation.
vi. Confirm its applicability to the organizational circumstance in question

Methods of interpretation of the legislations

 Statutory text interpretation: This is the method of interpreting legislations by
looking at the plain texts and language used in composing them. Such method gives the
immediate meaning of the legislation.
 Legal interpretation: This is the method where the judicial system has applied the
legislation on case laws and shown how it should apply in the process. Relevant canons
are explained to the common man understanding by the judicial system.
 Context and structure method: This are a method through which the legislation is
interpreted in regard to the scenario it will be applied to and cross-reference to other
statutes and relevant canons.
 Purpose method: The legislation is interpreted according to the preamble clauses and
the legislative history why it was formed for the organization to get the perfect
understanding.

Importance of interpretation of the legislations

 It gives a comprehensive understanding of the legislations.
 It is important in enhancing compliance since the legislations are well understood.
 The legislations are applied for their right purpose
 The organization saves itself from the troubles of being on the wrong side of the
legislation
 The intentions of the law are implemented with the right interpretation and
understanding.

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Preparation and dissemination of brief to organization.
Policies and legislations have a significant impact on the organizational process. By this, it is
important to develop candid strategies which will help reduce the barriers that may exist
between the organizational employees and the policy makers. Greater emphasis is then put on
the translation and practice of the legislations. Therefore, one important way to reach to the
best application of the legislation is by preparing and disseminating of brief to the organization.
This can help develop strategies of working for better performance.

Procedure for preparation and dissemination of brief to organization.

i. Determine the gap and need for the brief
ii. Research on what is to be disseminated on the brief
iii. Determine the end users of the organization brief
iv. Identify the partners to be involved in the dissemination of the brief
v. Determine the methods that can be used to prepare and disseminate the brief.
vi. Evaluate the whole process.
vii. Disseminate the work plan for preparation and dissemination of brief for the
organization.
viii. Implement the process and other controls

Methods of preparation and dissemination of brief to organization.

 Newsletters and fliers: The organization brief can be prepared and disseminated by
using simple Microsoft documents such as newsletters and press releases which can
effectively communicate to the employees and other stakeholders.
 Publishing programs: Reports and journal article manuscripts can be used in the
transmission of the information concerning organization briefs which then enhances the
preparation and dissemination.
 National conferences presentation: Organizational briefs can be presented on
conferences where the organizational members are at the right mood and can possible
welcome the ideas presented on the brief.
 Social media sharing: The organizational brief can be prepared in form of a blog and
shared on social media platforms where the organizational employees can access it and
make use of it.
 Issuing press releases: The members of the press can also play a critical role in
organizing the brief and disseminating it effectively to the organizational employees in
a more formal way.

Importance of preparation and dissemination of brief to organization.

 It helps to raise awareness in the organization by letting other people to know what the
organization is doing.
 It informs the public of what the organizations is doing
 It promotes engagement of the employees through input and feedback.

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  It assists in promoting the organization by releasing the outputs to the public in form of
a brief.

Conclusion
This learning outcome covered identification of Legislations that require compliance by the
organization, the interpretation of the legislations, and the preparation and dissemination of
brief to organization. These elements were a good guide to enabling related legislation in the
human resources and ensures compliance with the available legislations. With the subtopics of
learning, the learning outcome presented comprehensive understanding of regulations and their
compliance in organizations.

Further Reading

Read more on legislation from Clark, K., & Connolly, M. (2006). A guide to reading,
interpreting and applying statutes. The Writing Center at GULC.

11.3.2.3 Self-Assessment

Written Assessment
1. Ann is an intern in Jumbo Bank in the legal department. She has been asked to determine
which of the below is not a method of identifying legislations. Which one can you single
out if you were Ann?
A. Observation method
B. Scrutiny of organizational health and safety (OH&Q)
C. Compliance evaluation method
D. Management review method
2. James works with the legal department and a junior employee has asked him to identify
from the below list as to which is not part of the procedure for interpreting legislations.
Which one is it?
A. Read the legislation in question
B. Scan the circumstance in which the legislation will be applied to.
C. Understand the goals of the organization and connect them to the circumstance.
D. Listen on the interpretation from others

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3. Susan is human resources personnel in Uyoga Credit Society. She has been asked to prepare
and disseminate brief to the organization. which of the below methods can she not use in
working out her preparation?
A. Newsletters and fliers
B. National conferences presentation
C. Interviewing method
D. Publishing programs
4. Charles is a new employee in Karura Dairy and he has been asked of the importance of
preparing and disseminating brief to the organization. He has been given the below list to
single out which of them is not an importance. Can you help him single the one that is not
an importance?
A. It informs the public of what the organizations is doing
B. It promotes engagement of the employees through input and feedback.
C. It assists in promoting the organization by releasing the outputs to the public in form
of a brief.
D. It gives people the chance of employment in the organization
5. Being an employee of the Githunguri, how can you go about to effectively interpret the
legislations for use in the Dairy?
6. As a junior staff in EACC, what methods do you deem best for interpretation of the
legislations?
7. You are the person in charge of communications in your organization. Your boss has told
you to prepare and disseminate organizational brief. Discuss the methods you will employ
in preparing and disseminating the brief.

Practical Question
As a legal practitioner, you have asked your junior staff to identify Legislations that require
compliance by the organization. You are sure if he does not follow the procedure, he will do
the wrong thing. Explain the procedure you expect thee employee to follow.

11.3.2.4 Tools, Equipment, Supplies and Materials

 Computer and projector screen
 Lesson brochures and fliers
 Sample Company operations, procedures and standards
 Writing materials and pens
 White board and marker pens

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11.3.2.5 References

Paddock, L., Markell, D. L., & Bryner, N. S. (Eds.). (2017). Compliance and Enforcement
of Environmental Law. Edward Elgar Publishing.

Russell, C. S., Harrington, W., & Vaughn, W. J. (2013). Enforcing pollution control laws.
Routledge.

Weiss, E. B., & Jacobson, H. K. (Eds.). (2000). Engaging countries: strengthening

compliance with international environmental accords. MIT press.

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11.3.3 Learning Outcome No 2: Initiate development of compliance strategies
11.3.3.1 Learning Activities

Learning Outcome No2. Initiate development of compliance strategies

Learning Activities Special Instructions

2.1 Identification of Strategies specific to the compliance Observation

requirements. Projects
2.2 Preparation of draft tools and mechanisms for compliance Review of portfolios
2.3 Doing Monitoring, evaluation and reporting on the
compliance to the legislations.

11.3.3.2 Information Sheet No 11/ LO2: Initiate development of compliance strategies

Introduction
This learning outcome covers the identification of Strategies specific to the compliance
requirements, preparation of draft tools and mechanisms for compliance, and doing monitoring,
evaluation and reporting on the compliance to the legislations. These three aspects will help in
initiating the development of compliance strategies that are important in organizational
operations for the better of the employees.

Definition of key terms

Strategies: These are laid down plans of action that are designed by the organization to help it
achieve the long-term goals.

Compliance: This is the process of ensuring that the organization as well as its employees
follow and abide by the laws, standard and ethical practices put in place for governance
purposes.

Compliance mechanisms: These are the systems of working to ensure that the legislation in
place within the organization is adhered to and kept to the latter.

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Content/Procedures/Methods/Illustrations

IDENTIFICATION OF STRATEGIES SPECIFIC TO THE COMPLIANCE

REQUIREMENTS
In the enterprise operations, legal and compliance risks are the elements that present a
challenging part. The understanding of laws and rules, which are compliance requirements, is
what leads to stakeholder expectations and reduce the organizational vulnerability to risks
associated. Therefore, having the best approach in form of strategies will help the organization
to better comply with the given legislations.

Procedure for identifying strategies specific to the compliance requirements

i. Identify the organizational terms of compliance requirements
ii. Obtain and interpret current compliance requirement information
iii. Review the compliance areas and establish potential breaches
iv. Identify the organizationally applicable compliance strategies.
v. Scrutinize the strategies available with regard to the compliance areas reviewed.
vi. Apply technology tools to analyze the strategies and their pros and cons.
vii. Adopt the unique compliance strategies which are specific to the compliance
requirements

Methods of Identifying strategies specific to the compliance requirements

Monitoring of adherence: This is the method which seeks to evaluate whether the compliance
requirements can be met with the available strategies and whether the strategies adhere to the
given legislations.

Scanning of managerial compliance requirements: The management is essential in strategy

development thus looking into their requirements will help the organization identify the right
strategies that are in line with the management.

Scrutiny of compliance procedures: The procedures laid down for compliance in the
organizations are an excellent guide to the identification of the specific strategies for
compliance. Once the procedures are well known, the specific strategies can be developed.
Liaison with relevant personnel: Particular parties in the organization are experts in the
strategy development and implementation. Consulting them will lead to the better identification
of specific strategies for compliance.

Sample strategies
 Public education campaigns: This is a significant strategy that is applied in changing
the social norm of the public or employees in the organization. Campaigns help to
change the behaviour and the requirements of the planning process which changes the
organizational response to the compliance requirements.
 Culture change programs: This is a strategy which focuses on changing the
organizational beliefs and norms. It helps to do away with former beliefs which have

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 become redundant and no longer compliant to the legislations and give room for new
legislations.
 Redesign of organizational documents: Organizational redesigning strategy is meant
to restructure the organization for better position towards identifying the specific
strategies and implementing them.
 Incentive programs: The strategy provides motivating factors that promote the
identification of specific strategies for compliance requirements.
 Staff training: This is the strategy of ensuring that the right workforce is in place which
will help towards the identification and determination of the specific strategies for
compliance requirement.

Preparation of draft tools and mechanisms for compliance

Ensuring compliance is one of the best ways that an organization can achieve its goals.
Preparing for compliance therefore means that the available alternatives are considered and the
best alternatives put into practice. The tools must therefore be orderly organized which will
enable the organization to move towards compliance. Preparing then lays at the core of the
business practice and Human Resources as they move towards legislation compliance. Choice
of the best tools and mechanisms is what leads to the best practice of compliance.

Process of preparation of draft tools and mechanisms for compliance

i. Clearly address the specified policy objectives
ii. Check the consistency of the objectives with the existing regulations.
iii. Effectively monitor the compliance mechanisms
iv. Focus on maximizing benefits and reducing costs.
v. Check on the flexibility of the regulations and find the lowest cost of compliance
vi. Put transparency on the operations of the policies and their impacts.
vii. Put in place the appropriate mechanisms and appeals.

Methods of preparing draft tools and mechanisms for compliance

Code of conduct formulation: Tools and mechanisms of compliance are a good demonstration
of the overarching ethical attitude of an organization. They set the basis of compliance
regarding the applicable policies and regulations. They therefore act as a tool for compliance.

Content checklist: The system to check on the applicable rules and regulations in the
organization will lead to the identification of regulations lacking in the organization and then
their subsequent development. This checklist will then serve a way of identifying the gap on
the tools and mechanisms and then developing them.

Policies and procedures: Another way of preparing draft tools and mechanisms for
compliance is following the set policies and procedures. Usually organizational policies and
procedures spell the way of formulating tools and ways to follow which in the end leads to
compliance.

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Importance of preparing draft tools and mechanisms for compliance
 They contribute to sound organizational compliance.
 The organizational operations are made better with the compliance tools in place.
 Employees have a clear way to follow and tools to use as they move towards
compliance.
 Organizational compliance monitoring and evaluation becomes easy with the presence
of the tools and mechanisms.
 They help the organization to meet the standard legal obligations which could otherwise
be forgotten.

Doing Monitoring, evaluation and reporting on the compliance to the legislations.

Organizational compliance is not just reached by putting in place the policies and procedures
but also following up to determine whether the procedures are embraced in the organization.
This is the process of monitoring and evaluation which ensures that the organization keeps in
line with the regulation requirement. Monitoring and evaluation is therefore important as the
organization moves towards compliance.

Procedure for monitoring, evaluation and reporting on the compliance to the legislations
i. Determine the organizational benchmark for compliance.
ii. Determine the organizational key-performance indicators for the compliance legislations
iii. Check and track the metrics of compliance in the organization
iv. Conduct organizational audit and evaluation on the compliance metrics
v. Make changes where necessary and make continuous monitoring and evaluation.
vi. Communicate the organizational state of compliance

Methods of monitoring, evaluation and reporting on the compliance to the legislations

Key-Performance Indicators evaluation: The organizational KPIs help to determine how
organizational compliance is practiced and attained. Evaluating such KPIs is one way of
monitoring the organization compliance towards legislations.

Metrics tracking: Tracing the organizational metrics of compliance to legislations is one way
of monitoring the move towards compliance. When the metrics have been attained, compliance
is said to have been achieved.

Quality auditing: This is a way of checking whether organizational systems and standards are
effectively practiced as put in in place. Auditing on the quality systems of the organizations
among them being compliance is one way of ensuring that monitoring and evaluation is done.

Importance of monitoring, evaluation and reporting on the compliance to the legislations

 Helps to check whether the organization is on track towards compliance.
 Gaps of compliance are able to be identified and worked on.
 Organizational operations are made smooth with the monitoring and evaluation
 Strong policies and procedures for compliance can be developed after monitoring and
evaluation which identifies weaknesses.

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  Communication of compliance policies is enhanced due to reporting of monitoring and
evaluation results.

Conclusion
This learning outcome covered the identification of Strategies specific to the compliance
requirements, preparation of draft tools and mechanisms for compliance, and doing monitoring,
evaluation and reporting on the compliance to the legislations. These three aspects helped in
initiating the development of compliance strategies that are important in organizational
operations for the better of the employees. With the content provided by this learning outcome,
learners are in a better position to understand compliance.

Further Reading

Gunningham, N. (2010). Enforcement and compliance strategies. The Oxford handbook of

regulation, 120, 131-35.

11.3.3.3 Self-Assessment

Written assessment
1. Cate is a legal practitioner in Jamii Bora Bank and has employees who have problems in
defining the methods of identifying compliance strategies. Given a list, the employees
sometimes can’t differentiate the methods. Which is the below is not one of the methods
of Identifying strategies specific to the compliance requirements?
A. Monitoring of adherence
B. Scrutiny of compliance procedures
C. Scanning of managerial compliance requirements
D. KPIs monitoring
2. John is a compliance personnel in KFC and wants to teach his new employees on sample
strategies specific to compliance requirements. Which is the below will he not teach?
A. Public education campaigns
B. Culture change programs
C. Organizational module
D. Redesign of organizational documents

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 3. Juliet is about to start preparing draft tools and mechanisms for compliance. She has just
been employed by ARMACO. Which is the following is no a methods she can use for
preparing draft tools and mechanisms for compliance?
A. Code of conduct formulation
B. Policies and procedures
C. Content checklist
D. Compliance ethics method
4. Peter has just entered the Human Resources department in Githunguri Dairy and wishes to
know the methods of monitoring and evaluation of compliance to use. Which is the below
is not a method of monitoring, evaluation and reporting on the compliance to the
legislations the he cannot use?
A. Key-Performance Indicators evaluation
B. Quality auditing
C. Observation method
D. Metrics tracking
5. As a junior employee in JAVA House, which process would you use to prepare draft tools
and mechanisms for compliance?
6. The junior staff in Jamii Bora have been asked to participate in monitoring and evaluation
of compliance legislations. However, they are reluctant because they do not see the need
for that. Explain to them the importance of monitoring, evaluation and reporting on the
compliance to the legislations.
7. As a managerial staff in Karura Agroforestry, your junior have come to you to know the
sample specific strategies for compliance. Explain to them the strategies.

Practical Question
As a quality auditing personnel, you have delegated the duty to your junior staff to monitor and
evaluate organizational compliance to legislations. They are however in darkness of the
procedure to follow. Give them a blueprint of what they will follow.

11.3.3.4 Tools, Equipment, Supplies and Materials

 Sitting equipment (Tables and chairs)

 Compiled notes
 Projector screen and laptop
 Sample Company operations, procedures and standards
 Writing materials and pens

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11.3.3.5 References

Gunningham, N. (2010). Enforcement and compliance strategies. The Oxford handbook of

regulation, 120, 131-35.

Interligi, L. (2010). Compliance culture: A conceptual framework. Journal of Management and

Organization, 16(2), 235.

Parry, E., & Tyson, S. (2009). Organizational reactions to UK age discrimination legislation.
Employee Relations.

Stokols, D., McMahan, S., Clitheroe Jr, H. C., & Wells, M. (2001). Enhancing corporate
compliance with worksite safety and health legislation. Journal of Safety Research,
32(4), 441-463.

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11.3.4 Learning Outcome No 3: Provide strategic advice on compliance matters
11.3.4.1 Learning Activities

Learning Outcome No.3. Provide strategic advice on compliance matters

Learning Activities Special Instructions

3.1 Mandate of the organization Observation

3.2 Confirmation of Organizations compliance requirements Projects
3.3 Establishment of Current status of compliance in the Review of portfolios
organization.
3.4 Provision of advice based on the established gaps.
3.5 Resolution of complex matters related to enabling and related
legislation.
3.6 Feedback is obtained on how well the advice/information suits
its purpose and audience and is used to recommend further
action.

11.3.4.2 Information Sheet No 11/ LO3. Provide strategic advice on compliance matters

Introduction
This learning outcome covers Mandate of the organization, confirmation of Organizations
compliance requirements, establishment of Current status of compliance in the organization,
provision of advice based on the established gaps, resolution of complex matters related to
enabling and related legislation and feedback is obtained on how well the advice/information
suits its purpose and audience and is used to recommend further action.

Definition of key terms

Mandate: These are instructions or an official order to do something.
Complex matters: These refer to tasks, events or situations that have many interconnected
parts therefore difficult to understand.
Legislation: These are state out laws.

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Content/Procedures/Methods/Illustrations

MANDATE OF THE ORGANIZATION

Familiarize with the mandate of the organization.
Mandate of the organization are various laws the organization must follow on daily basis. Its
crucial for an organization to have definitive mandates that are accessible, understood and
followed by all organization members.

Before an organization can become a legal entity then are some legal mandates that must be
accomplished. For example, filing for a corporate business license, registering name of
business, obtaining a tax identification number, registering for national and county government
taxes and obtaining national and county government licenses and permits. Formal mandates an
organization has to adhere to include: filing and paying social security, having worker
compensation insurance, family and medical leave policies. Informal mandates include
bonuses, traditions, benefits and gifts.

Evaluation of compliance strategies

 Advice is provided based on established gaps: Gaps are established by comparing actual
results on compliance level with the expected or desired level of compliance. Gaps can
arise due to missing strategies, structures, capabilities, processes, practices,
technologies and skills. By comparing the current state with the target state, an
organization can determine which laws it needs to work on to ensure better compliance
to these strategies.
 Feedback: An organization after evaluating the compliance strategies, an organization
gives feedback to employees on their level of compliance. Workers who tend to have a
higher degree of adherence are rewarded. If an evaluation of based on observances of
external compliance by external authorities’, individual organizations are given
feedback based on compliance.

Compliance reporting procedures

Legislation
Unclear unambiguous guidelines: In most large organizations, a compliance report falls under
the Chief Compliance Officer (CCO). CCO is responsible for establishing standards and
implementing procedures to ensure that organization compliance programs can efficiently
identify, detect and correct issues of noncompliance with applicable laws, regulations, industry
standard or company policies. In smaller organizations, or organizations without a compliance
officer, the responsibility for reporting may fall on members of legal department or another
qualified employee. When choosing a manager to lead a compliance reporting team.
Use of legal precedents: A compliance breach report form should be used by staff to report a
suspect compliance breach. All staff must promptly report on facts or matters they reasonably
believe are capable of amounting to compliance breach. Regional or national issues: Advocates
conduct a review of the particular organization compliance with regional and national law:
such compliance, or the lack thereof, may form an excellent foundation for argument for the
purposed advocacy goal.

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Advocates review the following key legal documents prior to reporting a compliance. These
documents may provide both legal arguments for a good compliance report: national
constitution and county government constitution. Issues not previously encountered: Difficulty
incorporating multiple compliance regimes. A company that conducts business in several
countries can easily be subject to half a dozen or more compliance regimes. Inadequate
implementation. Failing to fully implement compliance that is poor communication and
engagement.

Bring Your Own Device (BYOD) and Telecommuting. Organization can safeguard workplace
computers using tools such as encryption. BYOD may use passwords. Poor data loss
prevention. Many organizations use strong password encryption, fire was and other security
tools to keep invaders out but don't consider what would happen if defence breaks.

Conclusion
This learning outcome covered Mandate of the organization, confirmation of Organizations
compliance requirements, establishment of Current status of compliance in the organization,
provision of advice based on the established gaps, resolution of complex matters related to
enabling and related legislation and feedback is obtained on how well the advice/information
suits its purpose and audience and is used to recommend further action.

Further Reading

1. Article by Universal Class on Strategic Planning: Organization mandates and mission.

2. Article by Strategic Management Services on Compliance Program Evaluation.

11.3.4.3 Self-Assessment

Written Assessment
1. Jane is a fresh graduate from Karatina University, as she was looking for human resource
job, she went for an interview at Utumishi company ltd and she was told to define
legislation which one of the following statements is not true.
A. Is the transfer of communication from one place to another?
B. The process of making or enacting laws.
C. Requirements by law or mandate.
D. None of the above.

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 2. For agreed upon procedure, auditors simply provide a report of factual finding is expected.
A. Absolute assurance’s
B. Negative assurance.
C. Moderate assurance.
D. No assurance.
3. The auditors shall not comply with each requirements of SA unless in the circumstances
of auditing.
A. The entire SA is not relevant
B. The requirements are not relevant because it is conditional and the condition does
not exist.
C. Both A and B.
D. Guilty of professional misconduct.
4. Jack is designing a behavior intervention for raising compliance to tobacco control law
among vendor's outside educational and health institutions in kakamega what should be
the elements of this intervention package.
5. What are three main issues that should be taken into consideration to boost the
development of Islamic banking and finance today.
6. Having executive support will help strengthen the culture of your compliance. As human
resources manager, discuss ways you can use to gain top management support in regards
to compliance matters.

Practical Question/Case study

The candidate is required to:

1. Identify gaps
2. Show advisory skills
3. Resolve complex matter
Resources

1. Company mandate (to show results)

2. Mission statements

11.3.4.3 Tools, Equipment, Supplies and Materials

 NSSSF
 NHIF
 Industrial Training Act
 Company mandate (to show results)
 Mission statements

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11.3.4.5 References

Judicial Precedent, Law Reporting and the Ned for Regulation Ayorinde &Co, February
,17,2014.

Erie Kersetter, December,28,2018 Steps for Evaluating Legal Compliance. Laureen

Mcmenemy, May ,6,2019.

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11.3.5 Learning Outcome No 4: Customize relevant legislations
11.3.5.1 Learning Activities

Learning Outcome No.4. Customize relevant legislations

Learning Activities Special Instructions

4.1. Identification of Legislations that require compliance by Observation

the organization. Projects
4.2. Familiarization with the organizations policies and Review of portfolios
procedures.
4.3. Identification of the policies and procedures related to the
legislations for customization.
4.4. Modification of the organizations policies and procedures
to align to legislations.

11.3.5.2 Information Sheet No 11/ LO4 Customize relevant legislations

Introduction
This learning outcome covers entails identification of legislation, familiarization of policies
and procedures related to legislation and modification of the policies and procedures to align
to legislations.

Definition of key terms

Policies: It is a set of general guidelines that States the organization plan in order to achieve its
goal and objectives.

Legislation: It is a law that have been formulated by a governing body. Its purpose is to
regulate, authorize, outlaw, grant, declare or restrict.

Content/Procedures/Methods/Illustrations

CUSTOMIZATION
Introduction to customizing
Customizing: It is a process of modifying something in order to suit a particular need. In this
process a custom is established. This is a practice or course of behaviour that is regarded by
the person engaged in the practice. Customs has the force of law on account of long usage.
Legislations customization: It is a method in which legal authority and law is used in order to
enforce a rule. It must be recognized and enacted by the law courts and any other law-making
body.

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Identify the policies and procedures related to the legislations for customization.
Human resource policies and procedures
Are guidelines on the approach of which an organization intends to adopt in managing its
people. They represent specific guidelines to HR managers on various matters concerning
employment and state the goals of the organization on different aspects of Human Resource
management such as recruitment, promotion, compensation, training, selections. They
therefore serve as a reference point when human resources management practices are being
developed or when decisions are being made about an organization's workforce.

Finance policies and procedures

Financial policies clarify the roles, authority, and responsibilities for essential financial
management activities and decisions. In the absence of an adopted policy, staff and board
members are likely to operate under a set of assumptions that may or may not be accurate or
productive.

Procurement policies and procedures

The purpose of the procurement policy is to establish procedures for the business for
procurement of all goods and services and ensure that all goods and services procured are
obtained in cost-effective prices, at the required specifications and quality and are delivered in
time.

Manufacturing policies and procedures

a set of documented instructions created to help workers perform routine manufacturing tasks.
It can be used for manual and automated tasks, and also functions as a guide for safe work
practices. Compliance with manufacturing law helps promote work consistency, prevent loss
of quality, and retain brand reputation.

Legislation
Identification of Legislations that require compliance by the organization
All organizations are required to comply with relevant legislation to which they are subject.
This includes prescribed laws, regulations and by laws. Organization need to determine their
legislative obligations. They include:
● Association incorporation: It gives organization legal responsibilities upon them.
● Food act: Its purpose is to ensure that food is safe and suitable for human consumption.
● Taxation act: It outlines what taxes are liable to be paid.
● Occupation health and safety act: It seeks to provide a safe working environment.
● Risk Management: It sets up procedure to avoid risks and minimize its impact.
● Business licenses
● Employment laws
● Advertising and marketing laws
● Privacy laws
● Finance laws

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Modify the organizations policies and procedures to align to legislations
 Health and safety act: It are a main piece of legislation covering all occupational, health
and safety. The act includes general duties for contractors, employees, employers and
people in control of the premises and people who manage the use of substances at work.
 Food safety regulation: This act is to make an obligation to treat food intended for human
consumption in a controlled clean environment. The main aim of this law is that food be of
nature substance and quality demanded.
 Data protection act: Every organization must uphold and apply this act. If they hold
personal data, the information must only b kept if it's relevant and current at present time
must not be longer than needed.
 Code of conduct: In an organizational employee should conduct themselves in a
professional manner.

Familiarize with the organizations policies and procedures.

Organizations need policies and procedures for a wide range of management sections. Below
are some of the policies and procedures considered. Policies and procedures for attendance
This include guidelines on working hours, leaves, vacation time. Policies and procedures for
employee conduct. This include guidelines on performance management, discipline and
dressing code. It helps the employee know what is and not acceptable at the work place. Policies
and procedures for company properties:
They are guidelines on how to take care of the organization properties as well as how much
and what type of persons are permitted in using these properties. Policies and procedures for
internet and social media: They make employees aware that internet use in the work place isn't
private. It urges employees to limit personal internet use and ensure everything they do online
in the work place is legal, ethical and appropriate. Occupational Safety and Health Act
(OSHA). It aims to secure health and welfare of persons at work and protect persons at work
against risk to safety and health arising out of or in connection with activities of a person at
work. Employment Act: It applies to all employees employed by an employer under a contract
of service. The act does not apply to the armed forces, Kenya police, administration police,
NYS or Kenya prison service. The act provides the terms and conditions of employment of an
employee.

Labour Institutions Act: It's an act of parliament to establish labour institution, to provide for
their functions, powers and duties to provide for other matters connected. It doesn't apply to
armed forces and NYS. Labour Relations Act: It is an act of parliament to consolidate the law
relating to trade unions and trade disputes to provide for registration, regulation, management
and democratization of trade unions and employee organization/ federation to promote sound
labour relations through protection and promotion of freedom of association, to encourage
effective collective bargaining and promotion of orderly and expeditious dispute settlement
conducive to social justice and economic development.

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Policies and procedures for health and safety: It includes information about how to deal with
illness or injury at work place, equipment Safety guidelines, how to report or handle health
problems and accidents or in an event of fire or natural disaster. Policies and procedures of
expenses These guidelines explain how employees are supposed to spend organizations
financial resources in case one is given custody to. Constitution of Kenya. It contains of
fundamental principles and rules that govern the country. It provides the standards against
which the value of people and leaders of a country are measured. It’s the supreme law of the
land and all other laws must be subject to it.
It is a principle that everyone has equal access to employment opportunity based on merit
without fear of discrimination or harassment. It seeks to develop policies to promote workplace
diversity and create a safe workplace for all employees. It means people are treated on their
merits at every stage of their employment from recruitment, interview, to their daily duties,
promotion, training & development and resignation or retrenchment.

Aspects of common law

They include:
 A binding judicial decision
 Little influence in writing of scholars
 In most cases, contractual relationship is subject to private laws and courts
 Extensive freedom of contact

Conclusion
This learning outcome covered entails identification of legislation, familiarization of policies
and procedures related to legislation and modification of the policies and procedures to align
to legislations.

Further Reading

Read more on Human resource policies and procedures

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11.3.5.3 Self-Assessment

Written Assessment
1. An organization deals with production of soft drinks. During am offload an employee was
badly injured. There is various government act that provide for the compensation of injury and
health issue. Which is the most appropriate act
A. Industrial act
B. Employment act
C. Work injury benefit act
D. Read dispute act
2. Legislation is a process of formulating laws in Kenya. There are various sources of law.
From the statements which is not a law
A. Constitution
B. Act of Parliament
C. Judicial precedents
D. Presidential sermon
3. The management of an organization maybe involved in unfair practices that may cause
problem between management and employees. From the statements given which unfair
practices by management.
A. Non-compliance with promotional and transfer policies.
B. Timely wages and salary
C. Smooth handling of grievances
D. Safety training of employees
4. The following are explanation of what a company procedure is. Which of the following is
the best?
A. A discretionary means of accomplishing a company task.
B. A fixed sequence of steps required to perform a company task
C. A set of rules required to ensure that the company complies with the law.
D. A set of principles and guidelines that establish the company goals.
5. In an organization employee are often provided with handbooks, policy and procedures
which regulate workplace matters, they include
6. Zula company is a production firm. During working, the employee can get injured, there
are certain rights for compensation. Explain 4 of them
7. An organization may have problems with its employees on discrimination and
reimbursement of transport fare expense. Policies and procedures are important in solving
these problems. Why You Need to Enforce Policies and Procedures

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Practical Question
The candidate is required to:
1. Prepare a health and safety program
2. Prepare a contract form
Resources
1. The constitution of Kenya
2. Standard Operating Procedures
3. Human Resource policies and procedures
4. Writing materials and pens

11.3.5.4 Tools, Equipment, Supplies and Materials

 The constitution of Kenya

 Gazette articles
 Internet
 Dictionary
 Human Resource Manual

11.3.5.5 References

Paddock, L., Markell, D. L., & Bryner, N. S. (Eds.). (2017). Compliance and Enforcement of
Environmental Law. Edward Elgar Publishing.

Russell, C. S., Harrington, W., & Vaughn, W. J. (2013). Enforcing pollution control laws.
Routledge.
Weiss, E. B., & Jacobson, H. K. (Eds.). (2000). Engaging countries: strengthening compliance
with international environmental accords. MIT press.

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11.3.6 Learning Outcome No 5: Align operations to comply with the legal requirements
11.3.6.1 Learning Activities

Learning Outcome No.5. Align operations to comply with the legal requirements
Learning Activities Special Instructions

5.1. Carrying an audit on operations. Observation

5.2. Preparation and recommendation of Audit report are made to Projects
the management. Review of portfolios
5.3. Identification of modified area.
5.4. Monitoring, evaluating and reporting on compliance to the
legal requirements.
5.5. Making review and adjustments.

11.3.6.2 Information Sheet No 11/ LO5. Align operations to comply with the legal
requirements

Introduction
This learning outcome covers audit operations, preparations and recommendations of audit
reports. Audit reports and monitoring evaluating and reporting compliance to the legal
requirements.

Definition of key terms

Legal: It means something appointed, established or authorized/ permitted by law.

Audit: It is an official inspection of an organization accounts typically by an independent body.

It’s the examination or inspection of various books of accounts by an auditor followed by
physical checking of inventory.

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Content/Procedures/Methods/Illustrations

AUDIT
Human resource operations, auditing and reporting.
Human Resource audit involves strategic actions an organization takes to intensely objective
look at its Human Resource policies, procedures and practices. It’s a comprehensive review of
the organization current state which held identity whether the practice areas or processes are
adequate legal or effective. The results obtained from this review can help identify gaps in
human resource practices. Audits are a vital means of avoiding legal and regulatory liability
that may arise from an organization human Resource policies and practices. A human resource
audit consists of two main parts:

 An evaluation of the organization human resource policies and practices with a focus on
key human resource areas, that is, recruiting, employee retention, compensation, employee
benefit, performance management, employee relation, training and development.
 A review of current human resource indicators. This include the number of unfilled
positions, turnover, employee satisfaction, internal grievances, absenteeism, number of
legal complaints.

There are several types of human resource audits.

They include:
 Compliance: It focuses on how well the organization is complying with current federal and
local laws and regulations.
 Function: It focuses on specific areas in human resource function. eg payroll, records
retention, performance management.
 Strategic: It focuses on strengths and weakness of systems and process to determine
whether they align with the department and overall organization strategic plan.
 Best practices: It seeks to improve or maintain the organization competitive advantage by
comparing its practices with other companies having exceptional human resource practices.
 After the audit process the auditing team must summarize the data and provide feedback to
the organization human resource professionals and management on the finding and
recommendations. A written report is given and from this report the human resource
department and senior management develop a timeline for action.

Human resource audit preparations

The human resource audit includes seven key steps.
i. Determining the scope and type of audit: The audit team must determine which areas
to target for review.
ii. Develop the audit questionnaire: The audit team should invest sufficient time in
developing a comprehensive document that entails information on how the subjects of
inquiry. The questionnaire must seek to achieve the objective of the auditing.
iii. Collecting data: The questionnaire will be used as a tool to review the specific areas
identified within the scope of audit.

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 iv. Benchmark the findings: The auditing team will compare the auditing findings with the
human resource benchmark. This comparison will offer insights on how the audit
results compare against other similar organization national standards or internal
organization data.
v. Provide feedback about the results: At the end of the audit process, the audit team must
summarize the data and provide feedback to the human resource professionals and
management team inform of findings and recommendations. A written report will be
provided. From this report final analysis are given and the audit team can develop a
timeline for action that will help to determine the order in which issues will be
addressed.
vi. Crest action plans: The management and auditing team will create action plans for
implementing the changes suggested with the findings separated by order of
importance.
vii. Foster a climate of continuous improvement: And the end of the audit, human resource
professionals must engage in constant observation and continuous improvement of the
organization policies, procedures and practices, So that the organization never ceases
to keep improving. This will ensure that the company achieves and retains its
competitive advantages.

Identification of modified area

Monitor, evaluate and report on compliance to the legal requirements
Monitoring tends to occur within the activities, operational structure, and closer to the
underlying activities occurrence. It may be conducted operational management or involve an
expert outside the operational line where the expertise does not exist within the management.
Examples of monitoring, pre activities approval, transaction review, reviews of in process
quality check and outcome data, review of staff check list and attending company presentation.
The auditor evaluates the implication non-compliance in relation to other aspects of the audit
including the auditor risk assessment and the reliability of written presentation. The auditor
professional duty is to maintain confidentiality of client’s information which may include:
reporting, identified or suspected with rules and regulations to a party outside the entity.
However, an auditor legal responsibility may vary by jurisdictions and in certain circumstances
the duty of confidentiality may be overridden by a court of law/Law.
The auditor has a statutory duty to report the occurrence or suspected occurrence of non -
compliance with rules and regulations to supervisory activities. The auditor has a duty to
respond to legal authorities in case those in management and where applicable or those charged
with governance fail to take collective action.

Reviews and adjustments on Audits

 In auditing, the auditor’s evaluation of audit result should be including the review of
the following:
 The result of analysis procedure performed in overall review of the organization
statement.
 Misstatement accumulated during the audit

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  The qualitative aspect of the Company's practices
 Conditions identified during the audit that relate to the assessment of the risk of material
misstatement due to fraud.
 The presentation of financial statement including the disclosure.
 The sufficiency and appropriateness of the audit evidence obtained.

Conclusion
This learning outcome covered audit operations, preparations and recommendations of audit
reports. Audit reports and monitoring evaluating and reporting compliance to the legal
requirements.

Further Reading

Read more on Importance of company auditing

11.3.6.3 Self-Assessment

Written Assessment
1. In an organization Human resource audit are done annually. The organization carries out
performance appraisal exercise at the beginning of each year. The auditing team will focus on
inspecting, if this performance appraisal exercise complied to the laws and regulations what
kind of human resource audit will they carry out.
A. Best practice audit
B. Strategic audit
C. Compliance audit
D. Function audit
2. XYZ Company is a processing Industry. The internal auditors carried out the exercise and
wrote a report. Initially, the auditor gives an opinion on whether the financial statement
A. Are in accordance with the International standards
B. Are in accordance with the national standards
C. Present fairly the position and results of an entity
D. Have errors
3. An organization wants to carry out financial audit. External auditors have been hired to carry
out the exercise. Which of the following is not their duty?
A. Checking errors and frauds
B. Correcting errors and frauds
C. Preparing final accounts
D. Vouching with the original documents

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4. The International federation of accountants is a union of accountants. They intend to carry
out the human resource audit at organization Z. Which of the following is not part of their
exercise?

A. Finding the strength and weakness of Human resource department staff

B. Auditing potential appraisal and promotions
C. Pacify trade Unions
D. Administer the Human resource questionnaire
5. Zema Company is a service Industry. It recently carried out a performance appraisal exercise,
where the results were poor. The internal auditors intend to carry out the auditing process. The
following are the approaches it should put into consideration
6. An organization wants to carry out a Human Resource audit. There are methods that can be
used during the exercise. They include:

7. During an audit process there are common area which serve as a pitfall for both the
organization and the auditor. Describe the challenges that may occur

Practical Question
The candidate is required to:
1. Prepare a legal audit process
2. Prepare an audit report

Resources
1. Company policies and resources
2. Computer
3. Writing material

11.3.6.4 Tools, Equipment, Supplies and Materials

 Human resource auditing books
 Finance and accounting books
 Organization policies and procedures manual
 Internet

11.3.6.5 References

Paddock, L., Markell, D. L., & Bryner, N. S. (Eds.). (2017). Compliance and Enforcement of
Environmental Law. Edward Elgar Publishing.

Russell, C. S., Harrington, W., & Vaughn, W. J. (2013). Enforcing pollution control laws.
Routledge.

Weiss, E. B., & Jacobson, H. K. (Eds.). (2000). Engaging countries: strengthening compliance
with international environmental accords. MIT press.

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 CHAPTER 12: MANAGE HUMAN RESOURCE INFORMATION SYSTEM (HRIS)

12.1 Introduction
This unit specifies the competencies required to create and manage Human Resource
Information System (HRIS). It involves creating, reviewing and maintaining a human resource
data base, automating the human resource processes and training employees on self-service
information systems.

12.2 Performance Standard

It involves creating, reviewing and maintaining a human resource data base, automating the
human resource processes and training employees on self-service information systems
according to SOPs, as per the work place policies, as per the employees’ records, as per the
organization policy and as per the organization procedures.

12.3 Learning Outcomes

12.3.1 List of Learning Outcomes
a) Create a human resource data base
b) Automate the human resource processes
c) Train employees on self-service information systems
d) Maintain the Human Resource Information Systems (HRIS)
e) Review system features

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12.3.2 Learning Outcome No1: Creating a Human Resource database
12.3.2.1 Learning Activities
Learning Outcome No1: Creating a Human Resource database
Learning Activities Special Instructions

1.1. Identification of the needs of an organization . Observation

for a human resource data-base. Projects
1.2. Determination of the functionality of the data Review of portfolios
base according to organization’s needs. 1.
1.3. Determination of the components of the data
base.
1.4. Sourcing and procurement of software that
meets the needs of the organization based on
organization’s procedures.
1.5. Identification of Human resource data to be
uploaded in the data-base.
1.6. Uploading of Human resource data.

12.3.2.2 Information Sheet No12 /LO1: Creating a Human Resource database

Introduction
This learning outcome covers identification of the needs of an organization for a human
resource data-base, determination of the functionality of the data base according to
organization’s needs, determination of the components of the data base, sourcing and
procurement of software that meets the needs of the organization based on organization’s
procedures, identification of Human resource data to be uploaded in the data-base and
uploading of Human resource data.

Definition of key terms

Human Resource database: The HR database is the process through which transactions in
relations to time, payment processing, recruiting process, benefits and various HR data
gathering procedures are recorded, kept and retrieved in different ways.

Database need: Is refers to the need to typically design so that is it easier to store and access
information.

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Content/Procedures/Methods/Illustrations

INTRODUCTION TO HRIS
The Human Resources Information system (HRIS) is a software solution that allows data to be
entered, tracked and managed in relation to the work of the human resource operation within
the company. The HRIS began in 1950s and continued to 1960s and founded on payroll system.

Functionality of the data

 The data help in sorting the requirement of the company from the most needed to the
one that are not urgently needed.
 The data serves as a summary of the requirement of the company.
 The help in organization, interpretation and presenting information
 When data is properly handled, it can help the company to maximize on profits and
minimize losses
 Data serves as the source to monitor how workers are offering their services within the
organization.

Components of the data base.

The database is divided into hardware, software, data, procedures and the languages used to
access data.

Figure 39: components of database from aspoi.com

 Hardware: this means the computer, disks and other physical components which are
without data.

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  Software: this is the centre of the database and it controls all the activities of the
database. It also allows storage, accessing and retrieving as well as updating data.
 Data: This is the resource upon which the database management system is founded.
This allows the use and storing of information.
 Procedures: These are the instructions on how to use the database. This includes the
procedures to install a database management system.
 Language used to access the data: This is a language designed to give commands of
accessing, inserting, updating, and deleting data in the database.
 User: These are the people who key in the database information the different levels,
those that store, retrieve, access, update or delete.
 Database software: This is a software program that is designed for creating, editing,
storing, searching, extracting, automating, and maintaining database records.
Therefore, the users can manage data in formal ways like structured fields, rows and
charts.
Types of databases
 Hierarchical
 Network
 Object
 Relational etc.

Database functionality
Uses/Purpose of data base
 The HRIS help storing and collecting employees’ data in a company.
 It encompasses fundamental operation required to effectively deal with the end to end
HRM.
 The HRIS has a system that is helpful in the process of recruitment of employees,
managing the performance of the employees and learning within the company.
 The seniors can effectively train the junior employees to take up the responsibilities in
different situations.
 The HRIS help in evaluating and shift management of the employees.

Advantages and Disadvantages of data base

Advantages of data base
 Data abstraction: This is where complex data is hidden from normal user
 Managing Data redundancy: This is where data various copies of same data are availed.
 Reduced data inconsistency: This solve the challenges of having different files with
different information about a given object or person.
 Easier manipulation of Data: Adjustments can be affected easily once the data is
entered; this includes inserting, modifying and deleting.
 Sharing of Data: The sharing of data is easier with various people within the
organization and outside the organization. This help in saving the cash that would be
spent carrying data from one place to another as well as the time that could be spent
sending one data after another.

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Disadvantages of data base
 The cost of the hardware and software is higher
 The cost of maintaining data and converting data is expensive
 It is expensive to train the staff members

Uploading of data
Uploading is the process of sending data from one computer to another different computer,
phone etc. through the internet

The Steps of Uploading Data

Step 1: The data file to be uploaded must be screened for viruses and errors. If the results show
that there are no errors and viruses it’s passed to the next step.
Step 2: The data is plotted to help the use check outliers. With acceptance of any outliers the
file is taken to the last stage
Step 3: At this point the file is ready to be automatically uploaded to DATRAS database.

The HR Software are classified into three main classes

 The HRIS: Have four traditional functions for the human resource management. These
include individual tracking, benefits of administering and payroll
 Workforce management: This is based on the application of strategies that track the
employees and has employees scheduling.
 Strategy of the Human Resource: These employ applications that enhance long term
management of skills and talents which ensure that the employees are engaged and
developed. In this case the applications include employees learning management,
managing performance and how workers engagement functions.

Conclusion
This learning outcome covered identification of the needs of an organization for a human
resource data-base, determination of the functionality of the data base according to
organization’s needs, determination of the components of the data base, sourcing and
procurement of software that meets the needs of the organization based on organization’s
procedures, identification of Human resource data to be uploaded in the data-base and
uploading of Human resource data.

Further Reading

Read more on data uploading from Mujtaba, M., Jamal, S., & Shaikh, Y. (2018). Development
without Human Resource Development (HRD): Analysis of HRD Policy of Pakistan. Asian
Themes in Social Sciences Research, 2(1), 9-15.

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12.3.2.3 Self-Assessment

Written assessment
1. You have been the scoring highly in this subject and the principal asks you to define human
resource database. How will you define it?
A. The HR database is the process through which transactions in relations to time, payment
processing, recruiting process, benefits and various HR data gathering procedures are
recorded, kept and retrieved in different ways.
B. The HR database is the process through which transactions in relations to time are given
to students to appreciate them for their best performance
C. The HR database is the process through which transactions in relations to time to ensure
that there is no boycotting job
D. The HR database is the process through which transactions in relations to time to have
necessary information.
2. You are the president of the republic of Kenya and you have been asked to use your ability
to evaluate the performance the states companies, State the first step the use in uploading data.
A. At this point the file is ready to be automatically uploaded to DATRAS database.
However, the user has to confirm on the screen.
B. The data is plotted to help the use check outliers. With acceptance of any outliers the
file is taken to the last stage
C. All the above
D. The data file to be uploaded must be screed for viruses and errors. If the results show
that there are no errors and viruses it’s passed to the next step.
3. You have been entrusted with the company to buy them the best database. Which databases
will you consider?
A. Hierarchical, Network, Object and Relational
B. Relational, internet and computer
C. Hierarchical, Network, Object and Wi-Fi
D. Windows 10, Network, Object and Relational
4. Your company is considering new HRs Software and they need your input, as an expert
which three HRs Software you will consider will you advise them to consider.
A. Strategy of the Human Resource, Workforce management and HRIS
B. Laptop, Strategy of the Human Resource and Workforce management
C. Mobile phone, Laptop and Strategy of the Human Resource
D. All are important and should be considered
5. You have been invited to help students in their study of the topic on Database Software.
One of the students is new and doesn’t understand the meaning of database how will help
her to understand the meaning of database Software?
6. Explain the shortcomings that a company with database is like to suffer from if they systems
are not managed properly?

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7. Describe the components of database that should be considered before buying and installing
a new data base

Practical Question
You are required to;
1. Uploading data in a computer
Resources
1. Laptops
2. Pens and
3. Foolscaps

12.3.2.4 Tools, Equipment, Supplies and Materials

 Regulations, guidelines and strategic plan
 Organization structure, functions, policies and procedures
 Computers and computer software
 Computer servers
 Internet and intranet connectivity

12.3.2.5 References

Berber, N., Đorđević, B., & Milanović, S. (2018). Electronic human resource management (e-
HRM): A new concept for digital age. Strategic Management, 23(2), 22-32.

M Scholz, T. (2017). Big data in organizations and the role of human resource
management (pp. XVII-pp). Peter Lang International Academic Publishers.

Zehir, C., Karaboğa, T., & Başar, D. (2020). The Transformation of Human Resource
Management and Its Impact on Overall Business Performance: Big Data Analytics and
AI Technologies in Strategic HRM. In Digital Business Strategies in Blockchain
Ecosystems (pp. 265-279). Springer, Cham.

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12.3.3 Learning Outcome No2: Automate the Human Resource processes
12.3.3.1 Learning Activities
Learning Outcome No2: Automate the Human Resource processes

Learning Activities Special Instructions

6.1. Identification of Human resource processes Observation

6.2. Identification of processes documented. Projects
6.3. Documentation of processes converted from manual to Review of portfolios
electronic

12.3.3.2 Information Sheet No 12/LO 2: Automate the Human Resource processes

Introduction
This learning outcome covers identification of human resource processes, identification of
processes documented and documentation of processes converted from manual to electronic.

Definition of key terms

Automation: This is the process of improving efficiency of HR department and getting rid of
though manual tasks.

Content/Procedures/Methods/Illustrations

HUMAN RESOURCE PROCESSES

i. Human resource planning (recruitment, selecting, hiring, training, induction, orientation,
evaluation, promotion and layoff). This is the executing of plans programs and strategies
required to meet the goal of an organization by ensuring right numbers of qualified
employees work at the right time at the right place. The HR work is considered through
recruiting, selecting employing, inducting, orienting, evaluating and firing employees.
ii. Employee remuneration and benefits administration. Remuneration administration is the
process of deciding and planning for the wages of employees. On the hand benefit
administration is planning group benefit programs such as health and life insurances,
pensions, cost of living.
iii. Performance management. It is the evaluation of an employee’s performance over a
period meant to train, motivate and reward employees.
iv. Employee relations. The HR helps create a smooth environment within the organization
by solving problems between employees and management and overseeing the
employee’s welfare.

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 v. Talent Development and knowledge management. The HR promotes sharing and
distribution of knowledge in the company. The HR department influences knowledge
management by helping in promoting a culture of sharing information.
vi. Organization Design. The HR promotes a good organization design which helps improve
productivity by aligning resources with priorities.
vii. Compensation and Benefits. It focusses on employees’ compensation for the work done
and benefits policy making for covering employees. There are also other rewards which
include recognition, tips, gifts, etc.
viii. Training and Development. This is responsible for the training of staff for the
organization and career advancement. The HR plans for trainings, seminars and oversee
the training. It also encourages team building for learning.
ix. Leadership Development. The HR ensures that at every leadership position, qualified
leaders perform leadership roles. Therefore, HR focusses on performance definition, job
structure and incumbent evaluation to award leadership.

Automation
Introduction to HR process automation
This is the process of improving efficiency of HR department and getting rid of those manual
tasks. This helps in keeping information in a form that it can be effectively contained. There
are other benefits that come by user automation like time saving and tidiness of the working
environment.

Process of automating human resource processes

There are five steps in the process of automation;
i. Identification of Repetitive tasks: This is the first step in a company in the process of
automation. This help in understanding how vital the businesses are. The best procedure
is to know the workforce then determine who should be doing which work or work that
has been submitted repeatedly.
ii. Definition of the business goals: This helps remain focused in the business and the
mission of the company. With clear strategies there is direction in the business and other
employees embrace the strategy of the business.
iii. Choose the best automation solution: This is where the means to achieve the
objectives through automation are decided. The right software should be chosen on
which to get ideas from.
iv. Users should be trained: Not all users or employees understands how to use a software
therefore training them is the best option because it will ensure that right information
is entered in the database.
v. Note the key Indicators that affect the business: This will help ensure that losses are
minimized and profits maximized. The users will give information what and how the
usage of the automated process affects them. After this, one can effectively measure the
indicators and increase workflow.

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Monitoring and evaluation of HRIS
The HRIS is a computer system that collects and examines information which aid decision
making. Examples are databases. These systems need regular review assessments.

Advantages of automated human resource processes

 Improves efficiency: The information is generated by the machine and its automatic
hence effective and efficient.
 Cost effective: The cash that could be used in manure work is reduced
 Time managing: The computer is fast in computing data.
 Accuracy: Minimal errors are experienced and highlighted therefore easier to rectify
them.
 Reliable: Can be trusted because the machine is accurate compared to manual
operations.
 Quick to update: With computers updating is automatic and efficient.

Challenges of automated human resource processes

 Privacy violation because of sharing information through the company: Some
information regarding the employees is very sensitive and should not be shared to
others.
 Technical difficulties experienced while working with computers: Computer depend on
electric and skilful people to operate them and without these they are not effective and
efficient.

Conclusion
This learning outcome covered identification of Human resource processes, identification of
processes documented and documentation of processes converted from manual to electronic.

Further Reading

Read more on automated human resource from Balasundaram, S., & Venkatagiri, S. (2020,
January). A structured approach to implementing Robotic Process Automation in HR.
In Journal of Physics: Conference Series (Vol. 1427, No. 1, p. 012008). IOP Publishing.

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12.3.3.3 Self-Assessment

Written assessment
1. In your group, colleagues are discussing the advantages of the advantage of HRIS. Among
the answers provided which one is correct?
A. Better control of HR
B. All are advantages
C. Ability to manage huge data
D. Cost reduction
2. Describe human resource automation to the customers who are buying databases to your
shop
A. Getting rid of manual work completely
B. Using only computers
C. Both A and B
D. Utilizing technology to improve efficiency in an organization
3. Auditors have come to audit how the HR processes are done in your company. They have
advised the HR to do all the following except.
A. Punish workers
B. Manage performance
C. Train workers
D. Consider welfare of workers
4. You are HR and you are planning activities of the company which one will you not plan to
do to within the company?
A. Evaluating
B. Hiring
C. Cutting off payment
D. Selecting
5. What do you understand by the Human Resource automation?
6. You are asked to give Five HR processes to the HR department in you organization because
they are needed to evaluate the roles of employees. State five of the HR processes
7. Describe the steps of automating HR processes as the expert in automating

Practical Question
You are required to;
1. Uploading data in a computer
Resources
1. Laptops
2. Pens and
3. Foolscaps

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12.3.3.4 Tools, Equipment, Supplies and Materials
 Regulations, guidelines and strategic plan
 Organization structure, functions, policies and procedures
 Computers and computer software
 Computer servers
 Internet and intranet connectivity

12.3.3.5 References

Balasundaram, S., & Venkatagiri, S. (2020, January). A structured approach to implementing

Robotic Process Automation in HR. In Journal of Physics: Conference Series (Vol.
1427, No. 1, p. 012008). IOP Publishing.
Mohapatra, S. (2009). Business process automation. PHI Learning Pvt. Ltd.
Papageorgiou, D. (2018). Transforming the HR function through robotic process
automation. Benefits Quarterly, 34(2), 27-30.
Willcocks, L., Lacity, M., & Craig, A. (2017). Robotic process automation: strategic
transformation lever for global business services? Journal of Information Technology
Teaching Cases, 7(1), 17-28.

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12.3.4 Learning Outcome No3: Train employees on self-service information systems
12.3.4.1 Learning Activities

Learning Outcome No3: Train employees on self-service information systems

Learning Activities Special Instructions

3.1 Identification of users of the HRIS and their roles Observation

Projects
3.2 Development of Training manuals Review of portfolios
3.3 Training for each category of users

3.4 Monitoring, evaluation and reporting on the HRIS

12.3.4.2 Information Sheet No12 /LO3: Train employees on self-service information

systems

Introduction
This learning outcome covers identification of users of the HRIS and their roles, development
of Training manuals, training for each category of users and monitoring, evaluation and
reporting on the HRIS.

Definition of key terms

Self-service : Means offering customers and employees tools and information so that they can
find answers to their questions and have a better experience with product or service.

Information systems : An integrated set of components for collecting, storing and processing
data and for providing information, knowledge and digital products.

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Content/Procedures/Methods/Illustrations

FEATURES OF SELF SERVICE

 Self-scheduling: Customers also want the ability to view information about their
account and service history, to make changes to preferences or appointments as needed,
and to view information on additional/alternative products and services at their leisure.
 Real-Time insight: Should consider how to provide customers with real-time updates
on scheduled appointments, technician details and arrival time, and immediate access
to the service summary and invoice upon completion.
 Knowledgebase: Holds information about previously resolved issues, more in-depth
information on product usage, and anything else your customers deem of value to them.
 Forums: Provides information for customers. Here customers can help each other learn
about your product, offer ways in which they have used it as examples, offer
suggestions to improve it, and give a sense of a community around your product.
 Downloads: Is a way to deliver print documents and software upgrades (for on-premise
applications). This gives the customer the flexibility to retrieve that information when
he is ready for it without making a field service appointment. This saves you a field
service call and the customer a disruption of their workflow.

Benefits of self service

 Reduce Overhead Costs: A major benefit is that you don't need as many cashiers when
you offer self-checkout. You typically need someone to monitor the self-service
experience and to assist with machine problems or customer frustrations. This reduces
hiring and salary costs to the organization.
 Satisfy Customer Demands: A primary benefit of offering self-service checkouts is that
customers want them, and successful retailers provide what their customers want. By
offering self-service, you provide your rushed customers the chance for a speedy
checkout. Your customers who prefer personal engagement can still go through regular
checkout lines.
 Minimize Wait Times: Waiting in line is a negative experience for customers. Thus,
you could have a customer go from satisfied to disgruntled with a long wait in line.
With self-checkout, customers who have just a few items don't have to wait in regular
checkout lines. Because some of the traffic flows through self-service other customers
more quickly move through regular staffed lanes.
 Attract More Customers: When you have self-service checkouts, you potentially attract
business from customers who want efficiency.
 Maximize Revenues : Long queues might mean more customers, and this can translate
to higher profits and revenues for your business. Customers, however, aren’t always
happy to stand in line. This is the reason retail establishments have multiple checkout
counters. With more employees to man the checkout counters, you can cater to more
customers. The downfall is that more employees increases your labour cost. Managing
queues involves adjusting your customer service activities to get a balance. Long

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 queues discourage customers, but if they see that the queue is moving quickly, they are
likely to be more patient.

Advantages and disadvantages of self-service platforms

Advantages.
 Minimizes Wait Times: Waiting in line is a negative experience for a retail store
customer. The peak-end rule dictates that the most recent impression a customer forms
has significant weight in an overall assessment. Thus, you could have a customer go
from satisfied to disgruntled with a long wait in line. With self-checkout, customers
who have just a few items don't have to wait in regular checkout lines. Because some
of the traffic flows through self-service kiosks, other customers more quickly move
through regular staffed lanes.
 Attraction of More Customers: When you have self-service checkouts, you potentially
attract business from customers who want efficiency. Movie-rental provider Redbox
has built an entire business model on appealing to customers motivated by value and
efficiency. You have more appeal to customers looking to quickly grab a few things
and go. Although not exactly the same, a convenient in-and-out buying experience in
your retail store provides similar benefits to a convenience store purchase.
 It ensures s good customer service.
 It maximizes revenues.

Disadvantages.
 Security and Employee Concerns: Since self-service human resource systems involve
storing and accessing employee's sensitive information on a computer, the business
must have strong Internet and technology security. If an employee's information is
compromised, the employer may be liable if the security was poor or nonexistent,
depending on state laws. Concerns over security may make employees uncomfortable
with using a self-service system. If the employee is not comfortable, she may hesitate
to update her information when it's necessary and create snags for the human resources
department.
 Cost: A larger business may be able to handle the upfront cost, considering the potential
for savings later, but a smaller business may find the initial investment difficult.
 Training and support: As a company's practices change, employees may have ongoing
training needs that require multiple or occasional training sessions. Training which is
on easy.

Training
Training manuals
A training manual is a book or booklet of instructions, used to improve the quality of a
performed task. The purpose of a training manual is to organize how you are going to train
your employees throughout their employment. Having a training manual helps create a
standardized plan that is going to take your employees to success. A training manual guarantees
that employees do not miss important instructions.

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A four-step employee training manual template.
i. Clearly defined training objectives. Clarifying a new hire's main objectives is an
essential first step during the onboarding process
ii. Milestones and an established timeline
iii. Avenues to deliver feedback
iv. Reinforcements and continued learning opportunities.

Steps on how to write a training outline.

Step 1: The basics
Step 2: Define your training/learning objectives.
Step 3: Purpose and Opening.
Step 4: Clarify key topics, related concepts, and timing.

Step 5: Presentation techniques and materials.

Monitor, evaluate & Report

Management reports
A management report is a communication of business results, issues and risk created by
managers for an audience of managers, executive management or governance bodies. These
are critical tools for controlling and directing a business. As such, they require unambiguous
accuracy and clear communication.

Examples of management reports include:

 Numbers over scales: Communicates numbers for targets. They are paired with
percentages relative to targets, month- over- month and year- over- year.
 Information density: Top management are interested in seeing as much possible
information in a single screen
 Textual information: Communicates business conditions and results.

Monitoring and evaluation of management report.

 Evaluation is a systematic and objective examination concerning the relevance,
effectiveness, efficiency and impact of management reports.
 Monitoring is continuous assessment of management reports.
 Monitoring and evaluation(M&E) is used to assess the performance of these
management reports.
 Monitoring and evaluation processes are managed by top executive managers. The
credibility and objectivity of monitoring and evaluation reports depend very much on
independence of these evaluators to ensure a successful process.

Examples of HRIS available locally

 Transaction processing system: Used for payroll processing
 Management information systems: Calculating recruiting and selection yield ratios.
 Executive information systems: Succession planning

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  Decision support systems: Staffing needs assessment
 Expert systems

Conclusion
This learning outcome covered identification of users of the HRIS and their roles, development
of Training manuals, training for each category of users and monitoring, evaluation and
reporting on the HRIS.

Further Reading

Read more on HRIS Article by Neil Kokrmiller, September 26 ,2019. on What are the
advantages of Self-service

12.3.4.3 Self-Assessment

Written assessment
1. As a human resource student, you are given the following vendors which one does not sell
an employee self-service application
A. I Click Corporation
B. Oracle Corporation
C. Interlinks Technology
D. SugarCRM.
2. An employee self-service application may be available through which venue:
A. Intranet
B. Portal
C. Kiosk
D. All of the above.
3. _____ is the term for a company's efforts to consciously gather, organize and share
information internally.
A. Employee database
B. Knowledge management
C. Data mining
D. Employee data integration.

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4. This type of employee self-service search tool allows users to enter a problem using a
natural language, then work through a troubleshooting session which narrows the problem
with follow-up questions.
A. Interactive voice response (IVR)
B. Workforce management
C. Knowledge base search
D. Case-based reasoning (CBR)
5. Outline four steps that are used to prepare training manual template.
6. State five examples of HRIS available locally
7. Human Resource Information Systems, HRIS, have become an integral part in the modern
human resources management. Discuss on some few aspects of operational HRIS in any
organization. (10 marks)

Practical Question
The candidate is required to:
1. Demonstrate HRIS familiarization
2. Draft a training program

Resources
1. Desktop
2. Documents on previous performance results
3. Working- high-speed internet connection (WI-FI)
4. Working desktop keyboard

12.3.4.4 Tools, Equipment, Supplies and Materials

 Regulations, guidelines and strategic plan

 Organization structure, functions, policies and procedures
 Computers and computer software
 Computer servers
 Internet and intranet connectivity

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12.3.4.5 References

Balasundaram, S., & Venkatagiri, S. (2020, January). A structured approach to implementing

Robotic Process Automation in HR. In Journal of Physics: Conference Series (Vol.
1427, No. 1, p. 012008). IOP Publishing.

Mohapatra, S. (2009). Business process automation. PHI Learning Pvt. Ltd.

Papageorgiou, D. (2018). Transforming the HR function through robotic process

automation. Benefits Quarterly, 34(2), 27-30.

Willcocks, L., Lacity, M., & Craig, A. (2017). Robotic process automation: strategic
transformation lever for global business services? Journal of Information Technology
Teaching Cases, 7(1), 17-28.

©TVET CDACC 2020 483

12.3.5 Learning Outcome No4: Maintain the Human Resource Information Systems
(HRIS)
12.3.5.1 Learning Activities

Learning Outcome No4: Maintain the Human Resource Information Systems (HRIS)

Learning Activities Special Instructions

4.1 Familiarize with Human Resource Information Systems Observation

(HRIS). Projects
4.2 Update the human resource data in the system. Review of portfolios
4.3 Data cleansing undertaken periodically

12.3.5.2 Information Sheet No12 /LO4: Maintain the Human Resource Information
Systems (HRIS)

Introduction
This learning outcome covers the following familiarization with HRIS, how to update the
human resource data in the system and data cleansing undertaken periodically in line with Sops.

Definition of key terms

Data cleansing. Data cleansing is a form of data management. It involves cleaning up data
compiled in one area. e.g. data like a single spreadsheet. Therefore, data cleansing is the process
in which you go through all the data base and either remove or update data that is incorrect,
incomplete, improperly formatted, duplicated or irrelevant (source).

Human resource data. Human Resource data also known as talent analytics, people analytics
or workforce analytics is the process of collecting data and analyzing human resource data in
order to improve organizations workforce performance.

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Content/Procedures/Methods/Illustrations

HUMAN RESOURCE INFORMATION SYSTEMS (HRIS)

Importance of Human Resource Information Systems (HRIS)
 Access to up to date data. HRIS is of importance because all your up to date data is
stored in one platform which allows streamlined HR processes. When an employee’s
information changes, it only needs to be entered once to override the outdated
information.
 Increased productivity. HRIS enables small businesses simplify HR processes. Tasks
like employee onboarding, leave management and benefits administration can be
completed more quickly. This lets your HR employees do more work during work days.
 Reduced costs. Increased productivity does not only make HR employees work easier
but also saves the organization money. If your HR department continues using
inefficient processes, you’ll need to hire many more HR employees to keep up with
your growing company. When you use a human resource information system, the same
number of HR employees can handle the demands of a growing workforce.
 Improved compliance. There are regulations for recruiting, hiring, selecting, wage,
vacation time and statutory and therefore companies need to follow these regulations.
Now that your company has grown, it’s very hard for your HR employees to track all
of these compliance issues. They need to make sure the company is following the rules
for every single employee in the company. With an HRIS, it’s easier to monitor
compliance. HR employees need to enter the applicable regulations, and then the
platform helps them monitor compliance.
 Lower potential liability. If your business isn’t compliant with labour laws, you could
face serious consequences. Small compliance violations, even if they weren’t done
maliciously, can have big consequences for businesses. Your company could get fined
or even sued for the violation. By using an HRIS, you’re less likely to get into these
types of situations.
 Liability can also occur if you offer coverage that’s based on employee salaries, like
life insurance. For example, if an employee gets a raise, but the insurance carrier isn’t
told, the employee won’t have as much coverage as he should. If that employee dies
before the salary gets updated, his family could sue your company. When you choose
an HRIS with connectivity, the insurance carrier is automatically updated about these
types of changes.

Benefits of maintaining Human Resource Information Systems (HRIS)

 Efficiency. HRIS enables you to be able to make a streamline a wide variety of

processes and thus making your everyday activities efficient. Automating workflows
will make you save a huge amount of money and will carry out these processes
accurately thus reducing human error.
 Achieve the impossible. HRIS will help you achieve other capabilities that would
otherwise be impossible without superior technology. This will involve delivering e-
learning opportunities, real tracking of performance and other trends.

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  Better decision making. HRIS software can be used to tracking ongoing performance
data and much more which you can the measure and compare to go beyond basic
metrics like retention. These data-driven insights can help you make better decisions,
from budget allocation to delivering a better work experience based on what your
employees want. This ultimately means helping your employees and your business
become more productive to help achieve goals.
 Better employee experience. HRIS will help you track your employees better, from
their goals and interests to performance and learning, you can help identify problems
or areas that need improvement and work to make them better as soon as possible.
 This ultimately makes your business much more attractive to employees, helping you
secure the best talent during the recruitment and keep them for long-term success and
cost savings.
 Time saving. The hiring process can be tedious. HRIS will simplify your task by giving
you tools that can compare candidate’s strength, skill and experience as well as
behaviour.

Challenges of maintaining Human Resource Information Systems (HRIS)

 Employee and manager training. The value of time spent on training employees and
managers to use a new system should not be under estimated. A lot of time is spent
training employees on new systems in the organization now and then. Therefore,
employees and managers should be involved in the adaptation of new systems now and
then and fair more time should be set aside for employees and managers to learn the
new system as well.
 Employee change management. No one likes change and managing change can be quite
a task and this should be addressed during HRIS training meetings. Additional support
should be configured to help employees adapt to the new system on a daily basis.
Managers should clearly express how and when employees can reach out to discuss
issues with the new changes, as with emails or specific office hours.
 Configuring HRIS for optimal function. HRIS often have so many possible features
available to use that companies become overwhelmed and stick to the basics. This may
be helpful for getting used to the system at first, but will not help companies
to maximize their Return on Investment. After the initial stages of implementation, it
may be helpful to bring in an expert to configure the system to send alerts and
automatically print reports that can help with labour management, compliance,
recruitment and staffing, and productivity.
 Assessing Quality and Accuracy of Information
 Information is only accurate and valuable when the right formulas are used to derive
the information and the right constraints and cross-references are used to analyze the
data. For companies that have never used HRIS, it can be difficult to determine how to
assess accuracy and quality of information. HRIS analysts or vendor representatives
may be invaluable for overcoming this challenge.
 Complying with Legal Requirements: Even small organizations may have dozens of
federal, state, and local regulations to adhere to. Failing to understand the legal

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 requirements for the data, process, and structure can cause companies to incur penalties
and make them susceptible to audits. HRIS vendors may be able to help companies
understand what reports and information will be required to show compliance with
regulations.
 Ensuring Data Security. Companies must make sure that data is secure right from the
start. To assess the security of a new system, companies should ask vendors about the
security of data in transit and data at rest and understand what data security management
systems are in place. Just as importantly, companies should take precautions to ensure
password management and to make sure that only parties with clearance can access
certain sensitive information.

Security of HRIS
The following measures should be taken to enhance the surety of HRIS;

Purchase with intention. When looking into or want to purchase a new HRIS, ensure to look
into reviews and see what other companies are saying about the security software. You may
put in more security measures in place after system has been implemented and going or
choosing a vendor that is known for offering a secure HRIS that can help to keep your data
more secure while limiting the amount of work that you have to put into adding security
features.

Check Vendor security measures. The security measures a vendor takes to ensure that a
company’s data are secure should be understood before the company makes a final HRIS
selection. All HRIS vendors take precautions to keep company data safe, but the quality of
their security measures may vary. If no one on the HRIS selection team is a security expert,
footing the bill to consult with someone that is qualified may help to ensure that the selected
system has adequate security precautions in place.

Restrict Access Based on Needs. During the configuration stage of implementation, employers
and managers must be mindful to set up the system so that information is limited and controlled.
Employees should only have access to their own personal information. In addition, every
change made by an employee using the system must require authorization. Managers should
have limits set, based on relevancy to job needs. This way, only the most critical information
is accessible.

Keep Your HRIS Information Safe from Hackers: The HRIS is a veritable gold mine for
hackers. Employee names, dates of birth, social security numbers, salaries, and even banking
information can be accessed through an HRIS, providing cyber-savvy thieves with everything
they need to secure credit cards and commit countless acts of identity theft if they can breach
the system’s safeguards. Even large and formidable companies are not immune to breaches and
hacks, as evidenced by the breach at CareerBuilder. Keeping electronic records secure is not
impossible, though, it just takes a little knowledge and action. The following are a few ways to
make sure that the data in your system stays secure.

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Be Aware of Cyber Security: Most employers and HR professionals have absolutely no idea
what safeguards are in place on their HRIS, nor what safeguards should be in place. Becoming
knowledgeable about these issues is the first step to becoming more cyber secure. HRIS
vendors should be happy to explain more about what steps are taken to protect information and
a little online research will help to make sure their measures are adequate.

Beware of Phishing Schemes: Most cyber hacks are pulled off not because of system weakness,
but because of human folly. Phishing schemes target employees and managers, tricking them
into giving up usernames, passwords, and other sensitive information. By spreading awareness
throughout the company of these types of schemes, suspicious pop-ups, emails, and phone calls
may be flagged and shut down before harm can be done.

Create and Educate Employees on Security Protocols: Even if every employee can only access
certain information with their code or card, these access restrictions are ineffective if managers
and employees are sharing codes and cards. It is important to make sure that managers and
employees know what the stakes are if they share this information. Create disciplinary policies
that highlight the possible consequences of sharing access to discourage employees from doing
so.

Keep Software Up to Date: Security measures such as firewalls and security patches are only
effective if they are up to date. Periodic maintenance should be scheduled to continually make
sure that the system is secure and to make changes as needed. Hackers are always figuring out
how to bypass security protocols, so it is necessary to stay one step ahead to protect your
company.

Enable Timeout Features: Since most HRIS are now cloud-based and can be accessed from
any device, timeout features can be extremely helpful. If there is an option to log employees
out of the system after a certain amount of inactive time, make sure to activate this potentially
valuable option. By the same token, disable features that would allow employees to stay logged
into the system, just in case an employee inadvertently leaves a device where it can be stolen
or tampered with.

Frequent Password Changes: Most HRIS systems can be configured to require a password
change every so often, usually once every 60 days. While managers and employees may
express complaints regarding this measure, it can help to provide an extra layer of security as
it protects sensitive information from both internal and external threats. It will also aid in
keeping employees and managers from using passwords that are easy to guess based on
personal information, as employees must be more inventive when creating new passwords.

Prepare for the Worst: some of the most sensitive information in any company is contained
within its HR files. Much of the information detailed in employee files is helpful or necessary
for operations, ensuring that employees are compensated in a timely manner and that all
reporting is completed according to legal requirements. However, this same information is
valuable and tempting for hackers and thieves.

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Develop Password Priorities. Creating strong passwords and using them properly can prevent
data breaches. Forming guidelines that assist employees with setting up strong passwords and
guarding them can make a big difference. Outlining policies that prohibit password sharing and
enforcing them can also discourage poor practices.

Provide Data Security Training: HR managers, IT professionals, and front line managers
should all undergo some type of security training. These individuals all have access to sensitive
employee data, so it’s critical to make sure they understand the importance of keeping this data
secure. Vendor representatives may be helpful when it comes to teaching employees the best
ways to use the features of an HRIS to improve security.

Create Cyber Secure Policies: Not all cybersecurity tactics require technical skills and seminars
to achieve. Simply instituting smart policies can sometimes be a company’s greatest prevention
against hackers. If HRIS data can be accessed remotely, it is important to institute policies
against leaving devices unattended or failing to log out every single time.

Minimize Data Collection. One of the main elements of the GDPR is an emphasis on
minimizing the amount of data collected to just what is necessary to conduct business with the
individual. Minimizing the amount of information collected and stored limits the amount of
information available in the system, thereby limiting what hackers and thieves can potentially
access in the event of a breach. Even if your business doesn’t operate in Europe, information
minimization can assist with improving data security.

Data
Uploading data into system: This is the process of sending data from computer to internet.

Advantages of uploading data into system

 Data storage saving: By storing your data online you are reducing the burden of your
hard disk, which means you are eventually saving disk space.
 World Wide accessibility: This is the main advantage of online data storage. You can
access your data anywhere in the world. You don’t have to carry your hard disk, pen
drive or any other storage device.
 Data safety: You cannot trust your HDD and storage device every time because it can
crash anytime. In order to make your data safe from such hazards you can keep it online.
 Security: Most of the online storage sites provide better security. Here is a list of free
online storage sites, on which you can trust.
 Easy sharing: you can share data with your friends’ faster, easy and secure manner,
which saves more time.
 Data recovery: online data storage sites provide quick recovery of your files and
folders. This makes them more safe and secure.
 Automatic backup: you can even schedule automatic backup of your personal computer
in order to avoid manual backup of files.

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Disadvantages
 Improper handing can cause trouble: You must keep your user-id and password safe to
protect your data because if someone knows or even guess your credentials, it may
result in loss of data. Use complex passwords and try to avoid storing them in your
personal storage devices such as pen drive and HDD.
 Choose trustworthy source to avoid any hazard: There are many online storage sites out
there but you have to choose the one, on which you can trust. You can always refer the
list of free online data storage sites, which I shared above
 Internet connection sucks!! To access your files everywhere the only thing you need is
internet connection. If you don’t get internet connection somewhere then you will end
up with no access of data even though it is safely stored online.

Data cleansing
Data cleansing is a form of data management. It involves cleaning up data compiled in one
area. e.g. data like a single spreadsheet. Therefore, data cleansing is the process in which you
go through all the data base and either remove or update data that is incorrect, incomplete,
improperly formatted, duplicated or irrelevant (source).

Process of data cleansing

Step 1. Identify the Critical Data Fields: Companies have access to more data now than ever
before, but not all of it is equally useful. The first step in data cleansing is to determine which
types of data or data fields are critical for a given project or process.
Step 2. Collect the Data: After the relevant data fields are identified, the data they contain is
collected, sorted, and organized.
Step 3. Discard Duplicate Values: After the data has been collected, the process of resolving
inaccuracies begins. Duplicate values are identified and removed.
Step 4. Resolve Empty Values: Data cleansing tools search each field for missing values, and
can then fill in those values to create a complete data set and avoid gaps in information.
Step 5. Standardize the Cleansing Process: For a data cleansing process to be effective, it should
be standardized so that it can be easily replicated for consistency. In order to do so, it’s
important to determine which data is used most often, when it will be needed, and who will be
responsible for maintaining the process. Finally, you’ll need to determine how often you’ll
need to scrub your data.
Step 6. Review, Adapt, Repeat: Set time aside each week or month to review the data cleansing
process. What has been working well? Where is there room for improvement? Are there any
obvious glitches or bugs that seem to be occurring? Include members of different teams who
are affected by data cleansing in the conversation for a well-rounded account of your
company’s process.

Advantages of data cleansing

 Improves the Efficiency of Customer Acquisition Activities. Business enterprises can
significantly boost their customer acquisition efforts by cleansing their data as a more
efficient prospects list having accurate data can be created.

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  Improves Decision Making Process. The cornerstone of effective decision making in a
business enterprise is customer data. Accurate information and quality data are essential
to decision making. Clean data can support better analytics as well as all-round business
intelligence which can facilitate better decision making and execution. In the end,
having accurate data can help business enterprises make better decisions which will
contribute to the success of the business in the long run.
 Streamlines Business Practices. Eradicating duplicate data from the database can help
business enterprises to streamline business practices and save a lot of money. Data
cleansing can also help in determining if particular job descriptions within the
enterprise can be changed or if those positions can be integrated somewhere else. If
reliable and accurate sales information is available, the performance of a product or a
service in the market can be easily assessed.
 Data cleansing along with the right analytics can also help the enterprise to identify an
opportunity to launch a new product or service in the market which the consumers
might like, or it can highlight various marketing avenues that the enterprises can try.
For example, if a marketing campaign is unsuccessful, the business enterprise can look
at various other marketing channels that have the best customer response data and
implement them.
 Increases Productivity. Having a clean and properly maintained database can help
business enterprises to ensure that the employees are making the best use of their work
hours. It can also prevent the staff of the enterprise from contacting customers with out-
of-date information or create invalid vendor files in the system by conveniently helping
them to work with clean records thereby maximizing the staff’s efficiency and
productivity. This is the reason behind clean data reducing the risk of fraud as the staff
has access to accurate vendor or customer data when payments or refunds are initiated.

System security
System security works closely associating with data security. System security protects
everything that an organization wants to ensure in its networks and resources. Simply data
security is meant to protect the information and system security is what protects the information
containing the devices and network.

Measures of system security.

 Establish strong passwords: This first measure is really easy to put in place. You must
put together a combination of capitals, lower-case letters, numbers, and symbols to
create a strong password. The more characters you put, the better. With that, you must
avoid using your birthday or any personal information and change the password
accordingly.
 Set up a firewall: In order to protect your network, firewalls are an important initiative
to consider. They are a must-have for any company, as they control the internet traffic
coming and leaving your business.

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  Think of antivirus protection: Antivirus and anti-malware are indispensable to
protecting your Data. They are designed to prevent, search for, detect and remove
viruses but also adware, worms, trojans, and so on.
 Updating is important: Your computer must be properly patched and updated. Recent
updates allow your Data to be more secured.
 Secure every laptop: Laptops are portable so there is a higher risk that they can be
stolen. As a consequence, it is important to take more security measures in order to
protect all laptops. A simple solution is to encrypt them. In doing so, without the right
password, your computer’s Data is vulnerable.
 Secure mobile phones: Mobile phones are even more easily stolen than laptops but they
are as valuable for companies. Equally to laptops, phones can be encrypted- you can
put a strong password and enable an automatic lock-out. You can also set up a wiping
process if the phone is lost or stolen.

Schedule backups: You can schedule backups to external hard drives or in the cloud in order
to keep your data stored safely. The right frequency is weekly but you can do incremental
backups every few days. You can also use WI mi, which centralizes your documents. With it,
you can then share your documents with your team, your clients, and your partners

Monitor steadily: Data, Software, technologies, everything is moving so fast. Keep track of
them, keep in touch with news to see what is new on the market.

Be smart with emails and surfing the web: Downloading apps or files, opening emails and
clicking on links can infect your computer and your network. Be careful with the sources you
find online or you receive. Take every “warning box” seriously.

Advantages of system security.

 Increased Ability to Identify Problems
 Better Management
 Informed Responses: An integrated security system means a better flow of critical
information. Being integrated can allow the information to be expedited and facilitate
a better response across all systems
 Better Communication
 Increased Safety; Maintaining optimal safety and security is an integral part of any
business that protects your data from malicious things.

Disadvantages of system security.

 Strict Regulations. Strict regulations are put in place to ensure that they are followed to
and adhered to. This is a disadvantage because there are some times that can’t allow
you to access.
 Difficult to work with for non-technical users. People who are not skilled and trained
in accordance find it very difficult to use it. Therefore, proper training is needed in
system security.

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  Restrictive to resources. Difficult to maintain due to the un-availability of resources
such as finances. Requires a lot of maintenance and therefore finances can restrict
enablement of security systems.
 Constantly needs Patching. System security constantly needs maintenance and
upgrading to the latest software and technology. This can become very tiring to an
organization that doesn’t have the adequate resources for maintenance.
 Constantly being attacked. The rate of attack by people and other malicious sites is
always on the rise therefore making some companies loose data and shut down. This is
such a big threat and disadvantage to the companies.

Conclusion
This learning outcome covered the importance, benefits of maintaining, challenges and security
of HRIS, Content on data uploading into the system, data cleansing and system security.

Further Reading

Read more on HRIS from Curic Lisa, Understanding the importance of Human Resource
Information System,2017.

12.3.5.3 Self-Assessment

Written assessment
1. You are a HR of a certain company and want to develop and implement HRIS in the
company you are working for. Below are all prerequisites but two of them are the most
important. Which are the two important aspects that you would consider first?
A. The proposal to management and the needs analysis
B. The system specifications and the system design
C. The documentation and the system design.
D. The documentation and evaluation
2. There are different and a variety of definitions that can be used to describe HRIS. According
to the book, which defines HRIS accordingly?
A. Is defined only by the software-hardware configuration it uses
B. Is used to store data for use by the MIS department
C. Includes people, forms, policies, procedures, and data.
D. Cannot be used to manipulate and analyze data

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3. In the systems model of organizational functioning in the book, the general factor that can
cause changes for all the other factors of the total system is:
A. The HR strategy of other firms in the market place
B. The amount and sophistication of HRIS technology
C. The strategic management system
D. The national culture where the organization operates
4. The system model of organizational functioning indicates that the strategy of the firm, the
HR strategy and all HR programs
A. Should be in alignment with each other
B. Should impact only on HR metrics
C. Should drive the competition for resources
D. Should define proper HRIS development & use
5. Esther wants to implement HRIS in her organization but doesn’t know how to start or
implement. What steps would you guide her to follow?
6. Company xyz recently implemented HRIS into their organization. But as time went by,
they started to experience default with the system. They later came to realize it was an issue
of security of HRIS had been compromised. How would have xyz ensured that their system
was safe before implementation?
7. System security works closely associating with data security. System security protects
everything that an organization wants to ensure in its networks and resources. Describe 5
measures of system security.

A CASE STUDY OF SAFARICOM K LTD

Although people are organization’s most important asset, there are also significant gaps in the
human resource processes that need to be carefully managed if the organization in Kenya has
to stay on top of the competition. The gaps include the consequences of recruiting people with
wrong skills, inadequately training and developing them, losing them prematurely, developing
ineffective or misguided payment structures and failing to consider succession planning. These
are challenges that organizations in Kenya have to overcome. Despite the fact that Safaricom
Company has adopted the use of HRIS to automate their human resource functions from the
manual system, there have been problems on accuracy and timely data from the majority of its
employees. Furthermore, Safaricom Company has been faced with a lot of challenges including
lack of updated reward system, an inefficient bio-data system, which affects decisions on HR
functions (Ambira & Kemoni, 2011). With the ongoing development of knowledge, economy
and information technology use in the telecommunication sector, the realization of human
resource information systems use with Safaricom Company has not been comprehensively
investigated (Cheruto, 2005).

8. Kindly state the significant gaps that have been established in the case study in the human
resource processes.
9. You have been recruited by Safaricom as a consultant to come up with recommendations
that would help Safaricom to maintain business performance and maintain a competitive
advantage?

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12.3.5.4 Tools, Equipment, Supplies and Materials

 Regulations, guidelines and strategic plan

 Organization structure, functions, policies and procedures
 Computers and computer software
 Computer servers
 Internet and intranet connectivity

12.3.5.5 References

Ambira, M., & Kemoni, H., (2011), Records management and risk management at Kenya
Commercial Bank Limited. South African Journal of Information Management,
13(1).92-102.
Cheruto, T. (2005). A survey of the use of human resource information systems in the banking
sector in Nairobi. (Unpublished MBA project). University of Nairobi, Nairobi

Makembo, M. & Oluoch, O., (2014), effect of human resource information system on the
quality of human resource functions in telecommunication industry in kenya at
safaricom k ltd. international journal of social sciences and information technology
issn 2412-0294 vol iv issue iv. jomo kenyatta university of agriculture and technology.
juja.

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12.3.6 Learning Outcome No5: Review system features
12.3.6.1 Learning Activities

Learning Outcome No5: Review system features

Learning Activities Special Instructions

5.1 Receiving of feedback from the users Observation

5.2 Appraisal System features Projects
5.3 Adjustment of the system Review of portfolios

12.3.6.2 Information Sheet No12 /LO5: Review system features

Introduction
This learning outcome covers how to receive feedback from the users, appraisal system features
and systems adjustment.

Definition of key terms

System features. Features are tools that you use within a system to complete an action or task.

Feedback: It is the process of returning information about a result or the returned portion of a
process.

Content/Procedures/Methods/Illustrations

FEEDBACK
Methods of collecting feedback
 Through surveys: One of the ways of collecting feedback is through developing a
survey with a ton of questions you could ask your clients or potential clients. The only
way to achieve this is by putting short simple best practices that are aimed to meet your
goals, open -ended questions, creating consistent rating scale and avoiding long
questions.
 Email and contact forms: Email is one of the most effective ways to get feedback or
collect data. It used an interaction to get feedback.
 Exploratory interviews: Reaching out to clients directly automatically opens
conversations with deeper insights that wouldn’t happen. By doing this it will help the
management to understand the personal feelings behind a decision done by a client as
well as community’s response on a certain brand. When you conduct customer

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 interviews, you create the opportunity to challenge false assumptions that developed
over time.

 Social media: Social listening will give you access to so much information to untapped
reservoir of candid information. Direct mentions or comments aren’t the only way to
get information it can also be done through in built polling tools e,g Instagram has an
in built pooling tool where clients get to vote as this will engage customers more as
they will get to align the product according to the purchasing line of behavior.
 Instant feedback from website: With an embeddable on-site widget, you are able to get
instant feedback without asking any questions.

Appraisal System
Methods of appraising system features
Management by objectives. Management by objectives (MBO) is the form of appraisal system
where managers and employees identify, plan, organize and communicate objectives to focus
on during a specific appraisal. After setting the goals, managers and employees will get to
discuss the progress made and discuss the feasibility to achieve those objectives. This will then
be reviewed periodically to see whether the employees achieved their goals. Success is
rewarded by promotion or salary increase while those who failed get a transfer or further
training is incorporated.
360-Degree Feedback. This is a multidimensional form of appraisal method where an employee
is evaluated using feedback collected from the employee’s circle of influence namely
managers, peers, customers and direct reports. This method will not only eliminate bias in
performance reviews but also offer a clear understanding of an individual’s competence.
Assessment Centre Method. This method enables employees to get a clear picture of how others
observe them and the impact it has on their performance. The advantage of this method is that
it will enable you to predict job performance in the future.
Behavioural Anchored Rating Scale. Behaviourally anchored rating scales (BARS) bring out
both the qualitative and quantitative benefits in a performance appraisal process. BARS
compare employee performance with specific behavioural examples that are anchored to
numerical ratings.
Psychological Appraisals. Psychological appraisals come in handy to determine the hidden
potential of employees. This method focuses on analyzing an employee’s future performance
rather than their past work. These appraisals are used to analyse seven major components of an
employee’s performance such as interpersonal skills, cognitive abilities, intellectual traits,
leadership skills, personality traits, emotional quotient, and other related skills.
Human Resource (cost) Accounting Method. Human resource (cost) accounting method
analyses an employee’s performance through the monetary benefits he/she yields to the
company. It is obtained by comparing the cost of retaining an employee (cost to company) and
the monetary benefits (contributions) an organization has ascertained from that specific
employee.

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Advantages and disadvantages of reviewing the HRIS system features
Advantages
 Payroll Integration: Integrating payroll is a cost-effective way to ensure that employees
have access to payroll documents, such as withholding forms and direct deposit
information. It also offers a portal so employees can retrieve pay stubs and tax forms
rather than a human resources clerk having to produce, distribute and send to an
employee.
 Employee Files: An HRIS system allows employers to store and track all human
resources documents, training and evaluations. From the moment a person is onboarded
to the time he retires, his entire file is maintained with easy access. Managers are able
to upload evaluation files, and employees can track which employment or benefits
documents are missing. This takes a lot of clerical work out of the human resources
manager's office, and enables him to focus his resources on better recruiting and internal
staff development.
 Benefits Administration: Employers are able to integrate benefits administration into
HRIS platforms. This means employees can access employee benefits such as health
benefits or retirement plans. Benefits administration is another aspect that eliminates
clerical work from human resources departments to focus on developing staff rather
than having staff spending their time filing and retrieving forms.
 Documents: An HRIS platform allows a portal for all important company documents
to be accessed. Everything from employee handbooks and code of ethics to evacuation
and emergency plans is stored in the HRIS platform. If someone needs to access it, all
they need to do is to log in and grab the file and open it.

Disadvantages.
 Security Breach: As with any computer technology and database, there is the risk that
hackers will access information and use it for nefarious purposes. Employees provide
employers with financial, tax and personal information such as emergency contacts. A
security breach could be catastrophic.
 HRIS Cost: As with any new technology, there is a cost to license and implement a new
system. Costs range, and they depend on the capabilities of the HRIS system, but they
may be as high as $300 per employee for large companies with many benefits
capabilities. Smaller companies should expect to pay anywhere from $40 to $100, and
that doesn't include payroll processor costs.
 Human mistake during input: All humans make mistakes and therefore it is common.
But if it made during input in HRIS then it can deter the whole data and cause a lot of
inconvenience and inappropriate data lying around which would have been corrected if
the person inputting the data was accurate and keen.
 Finding a professional specialist with human resources efficient area knowledge is
difficult. HRIS is a very complicated system and therefore it needs people who are well
trained and equipped with the necessary skills and training so monitor the input and
correct any form of errors that might be in HRIS. Keeping on training employees about
HRIS raises a lot of cost for the company.

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  Specialized knowledge. It is advised that every employee to have the necessary
knowledge about HRIS. This will deter the company from training them now and then
thus saving on cost.

Adjustments of system appraisal

 Begin with a strong performance plan. Cascade business goals into individual
deliverables, include clear performance measures, and update plans throughout the year
as things change. A clear performance plan greatly reduces the amount of time needed
to draft an evaluation.
 Use a uniform evaluation cycle. Conducting all evaluations at the same time helps
supervisors devote enough time to write good evaluations, ensures consistency between
employees, and allows management to assess individual contributions to organizational
goals.
 Require regular coaching and feedback. Providing ongoing feedback eliminates
surprises in the evaluation, helps supervisors focus on supporting employees, and gives
employees time to improve performance. It also reduces the chance that supervisors
will evaluate employees based only on their most recent performance, whether good or
bad.
 Hold formal interim reviews. Consider conducting one or more interim evaluations
during the year. Document achievements and progress towards achieving performance
plan deliverables.
 Set clear expectations for supervisors. Supervisors should know both the time frames
for completing evaluations, and the standards against which their evaluations will be
judged. Include expectations such as preparing, being specific, succinct and
constructive.

Conclusion
This learning outcome covered about system features where it was categorized into feedback,
appraisal system and adjustment of system appraisal.

Further Reading

Read more on Customer Feedback from Why It’s Important + 7 Ways to Collect It by Elizabeth
Wellington November 25, 2019.

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Self-Assessment

Written assessment
1. Kendra needs to rate five of her subordinates. She makes a chart of all possible pairs of
employees for each trait being evaluated. Then, she indicates the better employee of each
pair with a positive symbol on the chart. Finally, she totals the number of positive symbols
for each employee. Which method of performance appraisal has Kendra most likely used?
A. Comparison ranking scale
B. Graphic ranking scale
C. Alternation ranking
D. Paired comparison
2. John, the supervisor of the manufacturing department at a computer firm, is in the process
of evaluating his staff's performance. He has determined that 15% of the group will be
identified as high performers, 20% as above average performers, 30% as average
performers, 20% as below average performers, and 15% as poor performers. Which
performance appraisal tool has John chosen to use?
A. Behavioral anchored rating scale
B. Management by objectives
C. Forced distribution
D. Alternation ranking
3. Wilson Consulting is a management consulting firm with seventy employees. As associate
vice president of marketing, Suzanne Boyle is responsible for conducting performance
appraisals of the twelve employees under her direct supervision. Suzanne plans to use the
critical incident method to evaluate the performance of her subordinates. Which of the
following, if true, undermines the argument that the critical incident method is the most
appropriate performance appraisal tool for Suzanne to use?
A. Employee performance standards are closely aligned with Wilson Consulting's
long-term strategic plans.
B. Other departments at Wilson Consulting have seen employee performance
improve as a result of providing ongoing evaluations.
C. Suzanne will be conducting performance appraisals in conjunction with the HR
manager to ensure EEO compliance.
D. Due to economic difficulties, the firm will be laying off the two lowest performing
employees in Suzanne's department.
4. Nick supervises a team of data entry specialists. Lately, productivity has been down, and
Nick believes his subordinates are not working as efficiently as possible. Which of the
following tools would provide Nick with daily information about each employee's rate,
accuracy, and time spent entering data?
A. Digital dashboard device
B. Electronic performance monitoring system
C. Web-based management oversight device
D. Computerized performance appraisal system

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5. Company B wants to conduct a 360-degree performance appraisal on their employees.
What can they aim to achieve through the 360-degree performance appraisal system?
6. Company X wants to enact the 360 Degree Appraisal system in their organization. What
main phases will they have to go through for the enactment to be successful?

Case study
Theory and research suggest that providing employees with feedback on their performance is
a key component to improving the performance of individuals and the organization (Brown,
Hyatt & Benson, 2009). Companies have the opportunity to provide employee feedback on
performance and provide objectives through the performance appraisal (PA) process. It is also
suggested that PAs are a key HR function. However, research suggests that most organizations,
especially SMEs, are dissatisfied with their appraisal system. Moreover, manager’s attitudes
towards PAs is that it is a formal process and is merely a paper filling tick-box exercise,
suggesting that there could be a negative attitude towards performance appraisals in some
companies by managers and employees.

An ineffective process system in which employees and managers disagree about the formers
contribution can create conflict and lead to negative consequences, such as theft, vandalism,
intentional idleness, absenteeism and intention to resign by employees. Poor appraisal
processes tend to avoid differentiation between good and unsatisfactory performance, giving
rise to employees being incorrectly ranked in terms of their performance, to avoid
disappointment, dissatisfaction, inter-employee jealousy, hostility and discomfort felt by some
managers in providing negative feedback. A poor appraisal system also restricts opportunities
to add value through effective employee development, when most employees are appraised as
being inaccurately assessed as being ‘excellent’ in terms of their performance. At an
organizational level, performance management should ensure that employees’ performances
and skills are aligned with the strategic goals of the company. An effective and comprehensive
appraisal process assists in assessing if an organisation has the necessary human resource
capacity and competences in house. Such a process also supports the implementation of
strategic change and can foster good workplace harmony.

Although there is a body of literature suggesting that feedback improves employee

performance (Lorenzet, Cook & Ozeki, 2006), there is little to suggest that organisations are
providing good quality and effective feedback to encourage and support motivation of the
workforce. Effective PAs are more likely to enhance the opinions and experiences of
employees involved in appraisal processes, and help foster a positive attitude in employees
about their role and contribution. Brown et al. (2009) concur by suggesting that a high-quality
PA leads to greater job satisfaction and an increase in motivation in employees. Similarly,
Kuvaas (2011) argues that for feedback to be effective, regular informal feedback by managers
to employees is required. However, it is not apparent whether organizations are doing this other
than providing feedback in an annual performance review. This research carried out in an SME
was based on two key questions:
7. What are the implications for employee’s post-performance appraisal?

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8. How do managers use the performance appraisal process to help motivate employees to
increase their effectiveness and efficiency?

12.3.6.4 Tools, Equipment, Supplies and Materials

 Regulations, guidelines and strategic plan

 Organization structure, functions, policies and procedures
 Computers and computer software
 Computer servers
 Internet and intranet connectivity

12.3.6.5 References

Brown, M., Hyatt, D., & Benson, J. (2010). Consequences of the performance appraisal
experience. Personnel review, 39(3), 375-396.

Kuvaas, B. (2007). Different relationship between perceptions of developmental performance

and work performance. Personnel review, 36(3), 378-397.
Lorenzet, S.J., & Cook, R.G. (2006). Improving performance in very small firms through

Wood, J & Pereira, V., (2014). A case study of performance appraisal in a SME: moving on
from the tick-box generation

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 CHAPTER 13. UNDERTAKE EMPLOYEE SEPARATION

13.1 Introduction
This unit specifies the competencies required to undertake separation from an organization. It
includes identify ingemployees exiting the service, issuing notices of upcoming expiry,
conducting exit training, processing retirement benefits and claims, conducting exit interviews.

13.2 Performance Standard

It includes identify ingemployees exiting the service, issuing notices of upcoming expiry,
conducting exit training, processing retirement benefits and claims, conducting exit interviews
according to SOPs, as per the work place policies, as per the employees’ records, as per the
organization policy and as per the organization procedures.

13.3 Learning Outcomes

13.3.1 List of Learning Outcomes
a) Identify employees exiting the service
b) Process employees benefits and claims
c) Conduct exit interviews

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13.3.2 Learning Outcome No1: Identify employees exiting the service
13.3.2.1 Learning Activities

Learning Outcome No1: Identify employees exiting the service

Learning Activities Special Instructions

1.1 Familiarization with the types of separation from Observation

organizations terms of service Projects
1.2 Familiarization with the terms of service for each Review of portfolios
employee.
1.3 Determining the employees whose terms of employments
are coming to an end
1.4 Documentation of employees opting to exiting the service
1.5 Issuing of notices of exit to the identified employees
1.6 Documentation of those who have exited due to natural
causes
1.7 Preparation of reports

13.3.2.2 Information Sheet No13 /LO1: Review system features

Introduction
The learning outcome covers activities that revolve understanding employee separation. These
activities include; familiarizing with separation types from organizations Terms of Service and
familiarizing with each employee's Terms of Service. It also covers determining employees
whose terms of service are lapsing, documenting employees opting to leave the service. Other
activities covered are issuing exiting notices to identified employees, documenting employees
who exited due to natural causes, and preparing relevant reports.

Definition of key terms

Retirement: This is when one decided to leave a workforce permanently due to the
advancement of age. The age limit of retiring is 60 years.

Absenteeism: This is where an employee habitually stays away from the place of work due to
work or family-related issues.

Redundancy: Occurs due to the reduction of the workforce by employers due to the dismiss
or scrap of a position in an organization.

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Content/Procedures/Methods/Illustrations

EMPLOYEE SEPARATION
Introduction to employees' separation
This is the lapsing of an employment contract or agreement between an employee and a
company seizes. Some of these separations are forced; in the case where an employee is fired.
Other types of separations are; resigning, retiring, or change of work; all these types are
voluntary.

Reasons for separation

a) Downsizing/layoffs: A layoff is the termination of employees by employers due to a lack
of work in an organization. At the same time, downsizing is releasing employees since the
organization no longer needs them. This separation happens to several employees at once,
and the main objective of downsizing is to improve a company's effectiveness and
efficiency.
b) Dismissal: This is the terminating work of an employee in an organization as a disciplinary
action due to misbehaving. Reasons for dismissal are low and unsatisfactory job
performance and violation of organizational rules and regulations. An employee should
issue with a clear and precise reason for dismissal.
c) Redundancy: The reduction of employees in an organization by employers because a
position is no longer needed in the organization. For instance introduction of self-service
apps in the banks renders customer service officers redundant.

Causes for redundancy

The following are the causes of redundancy in an organization;
 When a company changes ownership resulting from been bought by another company
 If a company is closed or seizes in existence
 If the job hired becomes irrelevant and exits
 The advancement of technology to replace a workforce
 Where the company wants to cut operational costs

HR role in reducing redundancy

 They should ensure there is a clear communication plan. The HR is obliged to ensuring
that they effectively communicate with the employees who are to be reduced before the
actual activity happens
 Ensure that there is communication between the HR and reduced employees even after
leaving the organization and encouraging them to keep on track
 Preparing managers and supervisors of the attacks they may receive from employees
reduced. This ensures that the managerial team can give their emotional response.
 Arranging for counseling services to both reduced employees and managerial in the
organization
 HR should involve employees that remain in the organization that is relevant and are
involved in the reconstruction of the organization.

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d) Resignation: This type of separation is referred to as the termination of service by an
employee from an organization. This becomes effective when the employee hands their
notice, which is known as 'resignation.' There are two types of resignations;
 Voluntary retirement: This occurred when an employee decided to terminate an act of
service willingly based on different grounds such as; marriage, self-employment,
education, ill health, among others.
 Involuntary: This is an act of service where an employee compulsorily resigns due to
violating an organization's codes of conduct or poor performance. Here, the employee
must sign a consent document to state that they agree to abide.
e) End of contract: This is an act of service where employment ends since the agreed contract
has lapsed. This occurs where an employee works for a given period and may renew the
contract once it lapses, or they may decide to exit the organization.
f) Retirement: This is the main reason for separation in an organization. It is defined as the
termination of an employee's service due to advancement of age. The retirement age differs
based on a country or an organization's policies implemented. There are two types of
retirements; compulsory retirement and voluntary retirement.
 Compulsory retirement: This type of retirement requires an employee to retire from
service once one attains the age of superannuation.
 Voluntary retirement: This is the act of an organization providing retirement options
to its employees to retire before the age of superannuation. This is made possible
for the formulation of a voluntary retirement scheme (VRS). Employees who opt
for this type of separation are awarded a lump sum payment, referred to as 'Golden
Hand Shake.'
g) Medical reasons: In this type of separation, an employee terminates their term of service due
to health complications. This occurs if the health of an employee interferes with their
performance in an organization yielding to underperformance.
h) Death: This is an irreversible type of separation that happens as a result of the death of an
employee. Death is usually a sudden type of separation that is never anticipated. There is no
process followed in this type of separation.

The procedure of employees' separation

Five stages occur in the separation process. These stages include;
i. When possible, employees should typically provide written notification with a minimum
of two weeks' notice of their intention to separate from the company.
ii. After management receives this letter, they should forward it to their HR department
along with a signed "Separation Notice." This separation notice will serve as notice to
stop the employee's payroll and benefits.
iii. A neutral party should conduct an exit interview with the employee to discover his or her
reasoning for leaving your employ.
iv. Finally, mail a letter to the employee confirming their resignation and cancellation of
benefits. Also, give the employee a letter regarding the option for filing for
unemployment. Please note this does not guarantee the employee will be found eligible
for unemployment

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 v. Keep copies of all separation documents in the employee's personnel files.
Types of separation
There are several types of separation; this includes; Retirement (Compulsory and voluntary),
Resignation, Layoffs, Dismissals, as explained above under the reasons for separation.
Therefore, the reason for separation defines the type of separation. It also includes
retrenchment, which is defined as the termination of an employee's services that results from
economic reasons; this termination is permanent. An employee must be issued with 15 days to
3 months' notice before the actual separation happens

Terms of service for each employee.

Terms of service: This is also known as the term of use, terms of conditions or terms of service
and is often abbreviated as TOS, ToU, T&C, or ToS, respectively. TOS can be defined as a
legal agreement between the recipient of a service and service providers. TOS is mainly used
for legal reasons in companies to show compliance with employees to adhere to its policies and
regulations.

Determination of the employees whose terms of employment are coming to an end

The following are the determinants of whether an employee should be retained the organization
or not;
 Employees' performance in the organization
 The relevance of the employee in the organization
 Age of the employee
 Experience and skills that the employee has
 Position in which the employee holds in the organization

Documentation of employees opting to exit the service

This is documentation happens in the voluntary process of separation; an employee is required
to draft a notice stating their intension of leaving the organization and giving a clear reason for
their exit. The notice should be presented by the employee three months before the intended
date of exiting. The notice is documented for future reference or use as evidence in case of any
issues.

Documents prepared for each type of exit due to natural cause (Death, Sickness, or
Disability)
a) Death documentation: Death is a type of separation that occurs unexpectedly if, at any
point, there is a death of one of the employees; documentation is essential. The main
purpose of this type of documentation is essential in the compensation process and also the
insurance process. There are two types of documentation;
 PAYE form P60 and the latest pay slips if the deceased was employed
 Statements of tax calculation and the recent tax returns
b) Sickness documentation: If the resignation is caused by a natural defect such as health
complications, medical documentation is required. The employee in question must produce
a medical letter provided in a health facility stating that they are unfit to perform duties.

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 The report also clearly outlines where the employee is ailing and the reasons why they need
to quit.
c) Disability: An employee may opt to resign due to disability issues, a notice of resignation
by the employee is issued. The employee states the current condition and how the condition
would affect their performance in the organization. The notice is stored or rather
documented to serve as evidence of the employee's performance in the organization.
d) Absenteeism: When an employee habitually or frequently misses going to work, excluding
leaves on pay, off days or weekends and off times. The employee just decides to assume
working for no apparent or communicated reason to the employer. Several consequences
result in absenteeism which includes;
 Reduction in the productivity level
 Costs of administrations are high
 Increase the cost of labour due to the temporary hiring of employees
 Poor customer service that results from understaffing
e) Staff turnover
This is simply the number of employees that leave an organization and are replaced by new
employees expressed in percentage. Staff turnover aids in the estimation of the cost incurred in
the process of hiring new staff for budgeting purposes. The following are turnover include;
involuntary employee turnover, voluntary employee turnover, desirable and undesired
turnover. Below is the formula to calculate turnover;

Figure 40: Employee turnover from adoptstaging.blob.com

f) Issuing of notices of exit to the identified employees: An employer must issue an exit notice
to an employee or employees clearly outlining the lapsing of working in the organization.
This notice should be in line with the (Section 35 (2) (3)) of the constitution of Kenyan ,
which states;
 If the employee is employed on a daily wage contract, the notice is given at the
close of any day without notice.
 If the employee is employed on a weekly pay or two-week basis, the notice period
shall be one week or two weeks, respectively, given in writing or payment of one
week's salary in lieu of notice.

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  If the employee is employed monthly, the notice period shall be 28 days and in
writing or payment of one month's salary in lieu of notice.
 In the case where a contract of employment provides that the notice of termination
be given for a greater period than one month. Then there will be an agreement in
writing between employer and employee for a longer notice. The agreed notice
period shall be of equal duration for both employer and the employee (section 35
(2)).

The role of HR in employee retention

Below are the roles of HR in retaining employees;
 Intervention whenever an employee decides to resign. It is their role to prompt why an
employee decides to quit working in the organization.
 HR is also assigned to hold sittings with an employee when they decide to quit their
duties and responsibilities in the organization. The reason for the meeting is to have a
face to face conversation with the employee that aid in probing.
 The HR also tries to convince the employee resigning to find a solution to the issue at
hand. If the issue is minor, a solution is drafted and hence no need for resignation. This
is because the process of hiring employees is tedious, costly, and time-consuming.
 They should also conduct motivational activities in the organization; such training
should be both external and internal. This will aid employees in learning new things
and also eliminates boredom in the organization.
 HR should launch performance schemes; these are incentives for recognizing and
awarding top-performing employees. This will act as a catalyst, and every employee
will strive to be awarded; this will also be increasing productivity.
 Performance review among employees is another duty of the HR; they are tasked in
monitoring the employees' performance. This will help in identifying whether the
employees are enjoying work or not.
 Preparation of reports

The following are the basic steps followed when preparing a report;
i. Decide on the 'Terms of reference'
ii. Decide on the procedure
iii. Find the information
iv. Decide on the structure
v. Draft the first part of your report
vi. Analyse your findings and draw conclusions
vii. Make recommendations
viii. Draft the executive summary and table of contents
ix. Compile a reference list
x. Revise your draft report

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Conclusion
This learning outcome covered activities that revolved around understanding employee
separation. These activities included; familiarizing with separation types from organizations
TOS and familiarizing with each employee's TOS. It also covered determining employees
whose terms of service are lapsing, documenting employees opting to leave the service. Other
activities covered are issuing exiting notices to identified employees, documenting employees
who are withdrawn due to natural causes, and preparing relevant reports.

Further reading

Read more on report writing from indicator, W. (2020). Termination of a Contract. Wage
Indicator subsite collection. Retrieved 24 September 2020

13.2.2.3 Self- assessment

Written assessment
1. The manager of XYZ Limited asks that you state one reason why employees decided to
resign voluntarily. Which of the following was your response?
A. Disciplinary issues
B. Marriage
C. Retention
D. Venturing into self-employment
2. You are an HR in an organization, and an intern seeks to understand what redundancy is.
Which of the following explains the meaning?
A. This is the period where one decided to leave a workforce permanently due to the
advancement of age. The age limit of retiring is 60 years.
B. A situation where an employee habitually stays away from a place of work with no
valid reason
C. This is reduction of the workforce by employers due to the dismiss or a scrap of a
position in an organization.
D. None of the above
3. Having been a manager for the past three years, which one of the following is preparing
reports?
A. Make recommendations
B. Termination
C. Excluding
D. Relevance

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4. From your understanding, what are some of the consequences that result due to an
employee been absent?
5. As an HR manager, what are some of the existing separations in an organization?
6. You are an employee at Easy Day Dairy, and you are assigned to identify and give a detailed
report on some of the reasons for separations that exist. State and explain;
downsizing/layoffs, dismissal, resignation, end of a contract, retirement, medical reasons,
and death.

Practical case study

A student is tasked to;
1. Visit a Human Resource officer
2. Conduct an interview to a new employee

Resources
1. Furniture (tables and chairs)
2. Writing materials
3. Computers
4. Documentation of employees separation

13.3.2.4 Tools, Equipment, Supplies and Materials

 Resources and documentation used in the workplace.

 Pension documents.
 Workplace policies and procedures.
 Organization work plans.

13.3.2.5 Reference

Chand, S. (2017). Top 5 Forms of Employee Separation. Your Article Library. Retrieved 24
September 2020.

Collier, E. (2018). Workplace Absenteeism. The Hub | High Speed Training. Retrieved 24
September 2020.

indicator, W. (2020). Termination of a Contract. WageIndicator subsite collection. Retrieved

24 September 2020.

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13.3.3 Learning Outcome No2: Processing employees benefits and claims
13.3.3.1 Learning Activities

Learning Outcome No2: Process employees benefits and claims

Learning Activities Special Instructions

2.1 Receiving retirement documents from the employees issued Observation

with notices Projects
2.2 Filling pension forms as per the work place polices. Review of portfolios
2.3 Submission of documents to the pension scheme
administrators
2.4 Issuing of termination letters
2.5 Receiving retirement documents from the next of kin of
employees who exited due to natural causes
2.6 Submission of documents to the pension scheme
administrators
2.7 Payment of pension benefits and claims as per the
organization procedures.

13.3.3.2 Information Sheet No13 /LO2: Process employees benefits and claims

Introduction
This learning outcome covers receiving retirement documents from the employees issued with
notices, filling pension forms as per the work place polices, submission of documents to the
pension scheme administrators, issuing of termination letters, receiving retirement documents
from the next of kin of employees who exited due to natural causes, submission of documents
to the pension scheme administrators and payment of pension benefits and claims as per the
organization procedures.

Definition of key terms

Employee Benefits: These are other benefits extended to employees by an employer over and
above the salaries and wages. There are provided in various forms and form part of the overall
compensation given to an employee.

Retirement documents: These are documents that an employee hands over to the employer
upon attainment of retirement age in order to inform the employer of the intent to retire from
service or employment.

Pension scheme: This is a retirement plan where an employer and the employee contribute to
a pool of funds that are invested for the workers’ future benefit or give the employee pension
on retirement from employment.

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Content/Procedures/Methods/Illustrations

RECEIVING RETIREMENT DOCUMENTS FROM THE NEXT OF KIN OF

EMPLOYEES WHO EXITED DUE TO NATURAL CAUSES
When an employee dies before retirement and he/she was enrolled into a pension scheme, the
spouse, the civil beneficiaries or the authorized next of kin may be able to access the pension.
However, the guidelines for the death benefits vary depending on the retirement plan that one
had. Upon the passing of the contributor, the next of kin ought to contact the pension scheme
administrator for more information. The next-of-kin should provide sufficient means of
identification such as current passport, national identity card or letter of confirmation of
identity from an advocate or magistrate.
If the pension provider is satisfied with the identity of the next of kin, the pension provider
shall demand the following items as evidence of death of the employee/retiree:
 Member’s pension contribution Statement.
 Original death certificate of the deceased member or original court Decree where the
member is presumed dead
 A copy of the deceased identity card
 A copy of the claimant(s) identity card)
 A copy of ATM/Bank card
 An EFT Authority form
 Claimant’s full set of fingerprints
 Confirmation of the next of kin by the chief and Assistant/Deputy or County
Commissioner from deceased home area
The pension provider shall then confirm the validity of the letter of administration or Will
admitted to Probate and sight the originals of other documents provided. Upon satisfactory
evaluation and validation of the above documents, the pension provider shall then process and
remit the proceeds of the retirement benefits to the next-of-kin.

Employee benefits and claims

Forms of benefits
Human resource are the most important assets that an organization can have and can greatly
determine the ability of your organization to grow and thrive or break and fall. Employee
benefits are very crucial in the achievement of the company’s goals and objectives because
they show the employees that the company does not only value their current wellbeing but also
future security.

There are several types of benefits that an organization can accord its employees such as;
 Retirement plans
 Bonuses
 Award of different leaves entitled to the employees.
 Welfare programs and activities
 Flexible working hours including the option to work from home if possible.
 Special consideration to people with disabilities
 Employee training and developments

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  Financial incentives
 Teambuilding and outdoor activities
 Sponsorship of employees and/or their children for education etc.

Filling and Submission of Documents to the pension scheme administrator

It is paramount to first check your pension guideline to ensure that you meet your scheme’s
eligibility requirements to receive benefits. Also, be aware of what your plan requires to file a
claim. The pension guideline procedure booklet must include information on where to file,
what to file, and who to contact if you have questions about your plan, such as how to estimate
your retirement benefits.

If, for any reason, that information is not in the pension guideline procedure booklet, write to
the pension administrator, your employer’s human resource department (or the office that
normally handles claims), or an office of your employer to notify them that you have made
claim for benefits. Keep a copy of the letter for future reference. If it is not you, but an
authorized representative or your beneficiary who is filing the claim, that person should follow
the stipulated pension scheme claims procedure. The procedure may require other documents
when this type of claim is filed. When a claim is filed, be sure to keep a copy for your records.

Computation of employee benefits (Human Resource Accounting)

When competing to attract the best personnel in the market, organizations devise various
strategies to remunerate their employees. Use of fringe benefits is one of the most commonly
used strategies to attract and retain top talent within the organization. but nevertheless, it
important to properly manage these benefits by calculating their value. Knowledge of the total
compensation values for each employee helps the employer to determine the cost value of each
of them and allow for budgeting purpose.

When terminating the contract of an employee, either by retirement or through resignation or

any other way, the Labour laws give guidance on the computation of all employee benefits that
an employer should pay the employee. Provisions of several sections of the Kenya Employment
Act provide for payment of;
 Any remuneration for work done before termination of contract
 Any annual leave pays due to an employee for leave days not utilized by the employee
 Any payment in lieu of notices
 Severance pay due to an employee if he/she is entitled to it

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Issuing of termination letters
Among the greatest and most challenging roles of HR Professionals is terminating employees.
This is contributed by the burden of overcoming the emotional burden that it comes with and
sometimes the legal pitfalls that may arise as a result. But despite these challenges, the whole
process of termination must be handled professionally. Termination letters should be handed
to an employee after a termination meeting with the employee and should not be given to
another person, unless in a situation of absconding of duty where an employee fails to show up
for work.

During the separation meeting, it is important for the employer to have a comprehensive list of
items that the employee should hand over to the employer that were under his/her custody such
as keys, office laptops, phones, access passwords, files etc. The termination letter should be
brief, precise and to the point. So should the meeting. The letter should however not fail to
address the reason for termination, the effective date of termination and information of any
payments that are due to either parties. As difficult as it may seem, it is possible to terminate
an employee professionally and cordially.

Legal implications on employee exits and benefits

Employee separation may lead to costly and time-consuming legal battles if not handled within
the confines of legal boundaries and provisions. Most of the legal aftermaths of employee exits
arise if the employee was terminated unprocedural. However, employers can avoid putting
themselves in these precarious situations by establishing fair work rules and policies that are
compliant to the labour laws.
 Enforce rules fairly and by using progressive disciplinary measures when necessary.
 Establish performance feedback system that allow employees to know how they are
performing and how their performance can lead affect their job.
 Conduct thoroughly and conclusively an incident before resorting to firing an employee.
 Paying the fired employee all the monies owed to him

Conclusion
This learning outcome covered receiving retirement documents from the employees issued with
notices, filling pension forms as per the work place polices, submission of documents to the
pension scheme administrators, issuing of termination letters, receiving retirement documents
from the next of kin of employees who exited due to natural causes, submission of documents
to the pension scheme administrators and payment of pension benefits and claims as per the
organization procedures.

Further Reading

The learner should do more research on grounds that would make an employee be dismissed
summarily and what obligation that the employer has in such a scenario.

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13.3.3.3 Self-Assessment

Written assessment
1. Most employee benefit are determined by:
A. The individual’s contribution towards the organisation’s achievement of it strategic
objectives
B. The organisation’s yearly profit margins
C. Membership of an organisation
D. The relationship the employee has with their supervisor
2. The ability fan employee to transfer without penalty their accrued retirement benefit from
one superannuation plan is known as
A. Superannuation compression
B. Transferability
C. Portability
D. Policy merging
3. An organization can gain competitive edge, attract and retain people with the skills it needs
to achieve its key objectives by;
A. A better staffing policy
B. A strategic use of fringe benefits
C. Cutting employment costs
D. Being innovative and risk taking
4. Which of the following documents need not to be attached when claiming retirement
benefits by a retired employee?
A. National identity card
B. Duly filled claim form
C. Death certificate
D. Bank account details
5. Highlight key contents of a termination letter served to an employee who is dismissed for
habitually attending work while intoxicated?
6. Discuss some of non-monetary benefits that an organization can use to attract and retain its
employee within the company
7. John worked as the Production manager in Kilimo Industries. He had enrolled into the
NSSF where he has been making monthly contribution and his employer has been
remitting the contribution to the fund. He has appointed his elder daughter Wairimu as his
next of kin to his retirement fund. Upon his death, Wairimu has asked for your advice on
how to claim the money that her father had contributed to the fund. Kindly advise her on
what to do

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Practical Question
The candidate will be required to visit the nearest NSSF office and gather information on the
requirements needed for an employer to registered as a contributor and the process of registering the
same.

Resources: Writing materials and pens

13.3.3.4 Tools, Equipment, Supplies and Materials

 Observation
 Interviews
 Questionnaires
 Brochures and pamphlets
 Brochures
 Magazines
 Reference Books
 Journals and publications
 Surveys
 Newspapers

13.3.3.5 References

Anthony, W. P., Kacmar, K. M., & Perrewe, P. L. (2006). Human resource management: A
strategic approach. (5th ed.) Ohio:Thomson.

Armstrong, M. (2006). A handbook of human resource management. (10th ed.). London:

Kogan Page.

Dessler, G., Griffiths, J. & Lloyd-Walker, B. (2007). Human resource management. (3rd
ed.). Frenchs Forest, N.S.W.: Pearson Prentice Hall

©TVET CDACC 2020 517

13.3.4 Learning Outcome No3: Conduct exit interviews
13.3.4.1 Learning Activities

Learning Outcome No3: Conduct exit interviews

Learning Activities Special Instructions

3.1 Identification of the types of exit interview Observation

3.2 Highlighting the importance of exit interviews Projects
3.3 Development of separation tools Review of portfolios
3.4 Carrying out exit interviews
3.5 Analysis of the exit interviews data
3.6 Preparation of exit interview reports
3.7 Utilization of exit interviews outcomes based on the
organization policies.

13.3.4.2 Information Sheet No13/LO 3: Conduct exit interviews

Introduction
This learning outcome covers Identification of the types of exit interview, highlighting the
importance of exit interviews, development of separation tools, carrying out exit interviews,
analysis of the exit interviews data, preparation of exit interview reports and utilization of exit
interviews outcomes based on the organization policies.

Definition of key terms

Interview: Is essentially a structured conversation where one participant asks questions, and
the other provides answers

Layoff: A layoff is the temporary suspension or permanent termination of employment of an

employee or, more commonly, a group of employees for business reasons, such as personnel
management or downsizing an organization.

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Content/Procedures/Methods/Illustrations

INTERVIEWS
Introduction to exit interviews
An exit interview is a conversation between you and your employer—likely a human resources
representative. This is an opportunity to discuss job satisfaction or offer feedback on policy
and direction.

Steps to Conduct an Effective Employee Exit Interview

i. Ask Questions, and Pay Close Attention in an Exit Interview: You will want to listen
carefully to what you are told in an exit interview and make sure that you ask a lot of
questions. This will help ensure that you are understanding what the employee is saying
and also he or she is not saying, which are both important
ii. Understanding the Positive Aspects of Employment: By understanding the positive
aspects of employment with your organization, it will also make it easier for you to
retain critical employees and improve your workplace productivity. You will have the
information you need to make the changes necessary to provide a desirable workplace
iii. Create a Comfortable Environment for the Exit Interview: The key to conducting an
effective exit interview is to create an environment in which the exiting employee is
comfortable providing honest feedback
iv. Distill Employee Anxiety During the Exit Interview: You need to assure the employee
who is leaving that the feedback he or she provides will be combined with other
employee feedback and presented to management in an aggregated format
v. Ask the Most Important Question: Finally, make sure that every exit interview contains
the most critical question that you need to ask the employee. You want to know what
caused the employee to start looking for a new job in the first place

Methods of exit interviews

 Face-to-face discussion.
 Short questionnaire.
 Long questionnaire with customized, open-ended questions.
 Telephone interview.
 Online video interview.
 Online survey.

Importance/use of exit interviews

 Departing employees are generally more forthcoming than those still in their jobs
 You will learn the reason for an employee’s departure (it may be different than you
think!)
 The exit interview allows the employee to provide constructive feedback and leave on
a positive note
 That last touchpoint provides you with an opportunity to review continuing obligations
with the employee (e.g., non-competes, intellectual property agreements, etc.)

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  It provides the opportunity to ask if there are any open issues of which you need to be
aware. This can help reduce risk and identify matters that may require immediate
attention.
 You will get a candid assessment of your organization’s environment and culture
 Insight into recruiting, on-boarding, and training needs may be revealed
 The feedback will help you to identify areas that can help improve staff retention
 Improvement opportunities in management development and succession planning can
be detected
 It’s cost-effective and easy to facilitate

Analysis of exit interview data

Exit interviews are interviews conducted with departing employees, just before they leave.
Exit interviews are a unique chance to survey and analyse the opinions of departing employees,
who generally are more forthcoming, constructive and objective than staff still in their jobs.

Example questions for exit interviews

 What made you start looking for a new job in the first place?
 Why have you decided to leave the organization?
 Did you share your reasons with anyone in the organization? How did they respond?
 What was the state of your relationship with your immediate manager/supervisor?
 What could your supervisor do to improve their effectiveness in management?
 What do you think about this organization’s management and leadership as a whole?
 What did you like most about your job?
 What did you dislike most about your job?
 What would you change about your job?
 What did you appreciate about the organization?
 What did you detest about the organization?
 Did you feel happy and/or engaged in your job?

Ways to Improve Your Exit Interview Strategy

 Have a third-party conduct interview
 Gather peer feedback to tell the whole story
 Gather feedback before they decide to leave
 Use linkage analysis between turnover and engagement
 Use aggregate turnover analysis to understand trends

Carrying out exit interviews

 Choose your interview format. Giving your departing employees a questionnaire to fill
out could be less time-consuming and help avoid some uncomfortable discussions.
 Choose your interviewer. The person who's most familiar with your employee's work is
their direct supervisor
 Decide what to ask.

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  Decide what not to ask

Preparation of exit interview reports

An exit interview report is a formatted document given to employees whose contract or
employment has come to an end. The following is a sample of an exit interview record

Utilizing exit interviews outcomes

When people leave due to management issues, team conflict, or lack of recognition for their
efforts, it’s important to talk to managers or leadership and see if there might be any changes
that can help the situation. The following are ways you can use to utilize exit interview
outcomes;
 Get support from leadership: The most important thing you need to ensure is that the
leadership team will be open to feedback and options for change if recommended
 Communicate the value of the feedback to the exiting employee: Sometimes exit
interviews can have a lot of emotions attached to them. Whether someone who has
become an integral part of the company culture or someone who has really thrived at
your company is leaving for another opportunity, it’s usually hard not to be bummed
about an exit.
 Keep the interview consistent, objective, and simple: Exit interviews should be
conducted by a member of the People Operations Team or another HR leader. If these
roles don’t exist in your organization, try using a manager/director from another
department
 Share the feedback with all stakeholders: Keep all exit interviews in one place and put
together a process for sharing feedback. A leadership team might want access to where
the exit interviews live, or maybe they just want you to work out any suggestions for
change with the appropriate stakeholder.

Conclusion
This learning outcome covers Identification of the types of exit interview, highlighting the
importance of exit interviews, development of separation tools, carrying out exit interviews,
analysis of the exit interviews data, preparation of exit interview reports and utilization of exit
interviews outcomes based on the organization policies.

Further Reading

Read more on exit interviews from Lefkowitz, J., & Katz, M. L. (1969). Validity of exit
interviews. Personnel Psychology.

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13.3.4.3 Self-Assessment

Written Assessment
1. A qualitative interview is a more personal form of research compared to questionnaires.
The interviewer can probe or ask follow-up research questions of the interview participant.
In some cases, subjects may start to interview the interviewer. Which of the following
makes qualitative interviewing distinct from structured interviewing?
A. The procedure is less standardized
B. Rambling off the topics is not a problem
C. The researcher seeks rich, detailed answers
D. all of above
2. An interview guide is simply a list of the high-level topics that you plan on covering in
the interview with the high-level questions that you want to answer under each topic. Why
is it helpful to prepare an interview guide before conducting semi-structured interviews?
A. So that the data from different interviewees will be comparable and relevant to your
research questions
B. So that you can calculate the statistical significance of the results
C. In order to allow participant complete control over the topics they discuss
D. To make the sample more representative
3. Interview Transcription is the process of documenting a conversation between two or more
people. What can you do to reduce the time-consuming nature of transcribing interviews?
A. Use a transcribing machine
B. Employ someone to transcribe for you
C. Transcribe only selected parts of the interviews
D. To make the sample more representative
4. How does Oakley suggest that qualitative interviewing should be used as an explicitly
feminist research method?
A. By creating a more equal relationship between interviewer and interviewee
B. By invading the privacy of women and treating them as objects
C. By imposing academic interpretations upon women’s accounts of the world
D. None of the above
5. Okello has an employee in ABC company for about 6 years. He applied for a new job at
another organization and was called for an interview luckily, he got the job. ABC company
requires every employee leaving the organization to be conducted in an exit interview.
Highlight steps involved in conducting an effective exit interview.
6. Highlight ways to Improve Your Exit Interview Strategy
7. When people leave due to management issues, team conflict, or lack of recognition for
their efforts, it’s important to talk to managers or leadership and see if there might be any
changes that can help the situation. Explain ways of utilizing exit interviews outcomes

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Case study
Exit interview surveys (EISs)focus on identifying the reasons why employees are leaving the
organization, what may have encouraged them to stay, and what would entice them back to the
organization. Organizational leaders have been conducting EISs for years from the 1950s. The
first research on EISs was published in 1969. At that time, much like today, employers were
interested in learning more about workplace issues that caused employee turnover. Then, as
now, employers would gather baseline information about why employees were leaving,
implement changes to improve the work environment, and then conduct EISs to determine if
changes were making a difference the organization.
After all, an outgoing employee already creates a lengthy to-do list for various people in an
organization—including distributing work to other members of the team, advertising for his or
her replacement, and closing out payroll and benefits, among others. But a 2016 Harvard
Business Review article and a conversation with Zell Murphy, SVP of finance and
administration at the Cable & Telecommunications Association for Marketing (CTAM),
convinced me that exit interviews are very worthwhile, even if they add another task to the list.
Why? HBR says it better than I can: “In today’s knowledge economy, skilled employees are
the asset that drives organizational success. Thus, companies must learn from them why they
stay, why they leave, and how the organization needs to change.” And exit interviews are a
great way to gather some of this information. “If you start hearing consistent concerns about
something that the organization might not be doing or may be doing that is somehow causing
folks to want to look elsewhere, and that’s something that’s within the organization’s control
to correct, you want to know that,” Murphy said.

After all, knowing the concern is the first step to addressing it and hopefully keeping more of
your employees from jumping ship. To that end, here are a few rules for conducting profitable
exit interviews. Explain methods that can be used to conduct exit interviews

13.3.4.4 Tools, Equipment, Supplies and Materials

 Resources and documentation used in the workplace.

 Pension documents.
 Workplace policies and procedures.
 Organization work plans.

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13.3.4.5 References

Crawford, G. L., & Kloepper, K. D. (2019). Exit interviews: labouratory assessment

incorporating written and oral communication. Journal of Chemical Education, 96(5),
880-887.

Spain, E., & Groysberg, B. (2016). Making exit interviews count. Harvard Business
Review, 94(4), 88-95.

Williams, T., Schutt-Aine, J., & Cuca, Y. (2000). Measuring family planning service quality
through client satisfaction exit interviews. International family planning perspectives,
63-71.

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