PARTICIPANTS’

HANDBOOK

OPERATIONS FOCUSED TRAINING ON

HUMAN RESOURCE

MANAGEMENT

For Ambassador`s Fund Grant Program (AFGP) Grantees

Contents

1. Introduction to Human Resource Management ................................................ 1

1.1. Definition of HRM ................................................................................................................... 1 1.2. Evolution of HRM .................................................................................................................... 1 1.3. Objectives of HRM .................................................................................................................. 5 1.4. Human Resource Planning ...................................................................................................... 5 1.5. HR Planning Model .................................................................................................................. 6

2. Recruitment and Selection ................................................................................. 10

2.1. Recruitment .......................................................................................................................... 10 2.2. Job Analysis ........................................................................................................................... 11 2.3. Job Description ...................................................................................................................... 11 2.4. Job Specification ................................................................................................................... 12 2.5. Selection ................................................................................................................................ 13 2.6. Steps in selection .................................................................................................................. 14 2.7. The Interview ........................................................................................................................ 14 2.8. Job Offer ................................................................................................................................ 16 2.9. Induction and Orientation .................................................................................................... 19

3. Employee Management ....................................................................................... 22

3.1. Work Ethics ........................................................................................................................... 22 3.2. Performance Management ................................................................................................... 24 3.3. Performance Planning ........................................................................................................... 26 3.4. Training and Development.................................................................................................... 26

4. Conflict Management .......................................................................................... 30

4.1. Grievance Management........................................................................................................ 30 4.2. Disciplinary Action ................................................................................................................ 32 4.3. Whistle Blowing .................................................................................................................... 35

5. Downsizing and Termination ............................................................................. 40

5.1. Downsizing ............................................................................................................................ 40 5.2. Termination ........................................................................................................................... 42

6. Gender Guidance for AFGP Grantees in HR .................................................... 47

6.1 Introduction .......................................................................................................................... 47 6.2 Hiring, Promotion and Retention of Project Personnel ........................................................ 47 6.3 Training / Capacity Building .................................................................................................. 47 6.4 Monitoring and Evaluation (M&E) ........................................................................................ 48

Introduction to Human Resource

Management

OFT MANUAL: HRM Introduction to HRM SECTION - 1

1

1. Introduction to Human Resource

Management

Human Resource Management (HRM) is the function within an organization that focuses on

recruitment of, management of, and providing direction for the people who work in the

organization. HRM can also be performed by line managers.

HRM is the organizational function that deals with issues related to people such as

compensation, hiring, performance management, organization development, safety, wellness,

benefits, employee motivation, communication, administration, and training.

HRM is also a strategic and comprehensive approach to managing people and the

workplace culture and environment. Effective HRM enables employees to contribute

effectively and productively to the overall company direction and the accomplishment of the

organization's goals and objectives.

HRM is moving away from traditional personnel, administration, and transactional roles, which

are increasingly outsourced. HRM is now expected to add value to the strategic utilization of

employees and that employee programs impact the business in measurable ways. The new

role of HRM involves strategic direction and HRM metrics and measurements to

demonstrate value.

1.1. Definition of HRM

“It is the process of managing people in organizations in a structured and thorough manner”.

“The management of people in organizations from a macro perspective i.e. managing people

in the form of a collective relationship between management and employees”.

“Human resources is the set of individuals who make up the workforce of an organization,

business sector or an economy”.

Human Capital is sometimes used synonymously with human resources, although human

capital typically refers to a more narrow view; i.e., the knowledge the individuals embody and

can contribute to an organization. Likewise, other terms sometimes used include "manpower",

"talent", "labor" or simply "people".

1.2. Evolution of HRM

HR has evolved over the last hundred years in reaction to significant changes in the way

organizations get their work done. Putting the evolution of business and the evolution of the

HR name changes into one table (Exhibit 1) shows how reactive the profession has been to

changes in the social and economic realities of the time. The challenge for HR today is to

Learning Objectives: After studying this unit, you should be able to:

Define HRM and its role within an organization.

Define HRP, how organizations benefit from HRP and be able to make a generic

HRP model.

OFT MANUAL: HRM Introduction to HRM SECTION - 1

2

define our own future based on the trends that are eminently predictable now and to step up

to the challenge of creating our own future. In today’s competitive environment human

resource management is becoming a significant factor for the efficient running of an

organization. Human Resource Management emerged from personnel management and

personnel management emerged from manpower planning. The consideration of changes

taking place in managing human resource led to the adaptation of strategic HRM, which has

led to the emergence of strategic human resource management SHRM, which is considered

crucial for achieving an organization’s long term goals.

Exhibit – 1: The Reactivity of HR in Its Evolution

Decade Business Realities HR Name

Changes Issues

Pre-1900 Small Business & Guilds Did not yet even

exist Owners owned the HR issues

1900 Industrial Revolution Labor Relations People as interchangeable parts

1920 Civil Service & WWI Industrial Relations Workers’ rights and more

formalized processes

1940 Scientific Management

& WWII

Personnel

Administration

Efficiency experts and more

highly evolved HR processes

1960 Civil Rights &

Compliance Personnel

Legal compliance and reporting;

“policy police”

1980

Human Relations, the

Knowledge/Service

Economy, and Mergers

& Acquisitions

Human Resources

People

Relevance in a fast-changing

world; motivation and “human

relations” theories abound

2000

Modern Organizations

Organization

Effectiveness?

Human Capital?

Organizational

Capability?

No new official names, but lots of

“morphing” as the transactional

parts get outsourced and the

transformational parts get

defined

2010 Global Economy and E-

Enabled Technologies TBD

Still Evolving, Focus on Talent;

Capability; Culture;

Consulting—Challenged to Be

an Effective Internal Consulting

Organization

The evolution of human resource management as a distinct profession dates back to the

industrial revolution when factories established personnel departments to look into wages

and welfare of workers. To understand the evolution of Human Resource Management, one

must first understand its basis. The origins of workforce management lies in the arrangements

made for the welfare of apprentices working with the master craftsmen in the putting out

system that prevailed during the medieval ages. The industrial revolution that led to the

establishment of factories displaced the putting out system. The workers in the early factories

OFT MANUAL: HRM Introduction to HRM SECTION - 1

3

faced long hours of works under extremely unhygienic conditions, and mostly lived in slums.

This soon resulted in several labor riots, the most famous being Ludds riots of 1811 in

Nottingham, England, precipitated by reduced wages. The government soon intervened to

provide basic rights and protections for workers, and the need to comply with such statutory

regulations forced factory owners to set up a formal mechanism to look into workers’ wages

and welfare, and redress other issues concerning labor. This led to the emergence of

Personnel Management as a distinct profession.

The Personnel Management approach that remained in vogue for much of the 20th Century

remained administrative in nature. Arising out of the need to enforce statutory compliance, it

concerned itself primarily with:

Employee record keeping

Adherence to the stated policies while implementing functions such as recruitment,

training and wage administration

Taking welfare oriented measures such as providing medical care, vaccinations, housing

facilities and the like

Attempting to increase productivity through wage increases and training, and

enforcement of standards derived from work studies influenced by the scientific

management approach promulgated by Frederick Taylor and the like

Dealing with trade unions and trying to solve industrial disputes through collective

bargaining and other industrial relations approaches.

Conducting performance appraisals or report card of past performance to determine

pay and promotions

The Personnel Management approach tried to convince workers of the business interests,

and convince management of workers interest and social obligations. It rarely had a direct say

in the company’s strategy and did not involve itself with operations aspects, remaining a purely

staff function.

The latter decades of the twentieth century saw the winds of change starting to affect the

personnel management profession. Elton Mayo’s Hawthorne Studies had discredited Taylor’s

Scientific Management approach toward productivity increase, and established that the major

drivers of productivity and motivation were non-monetary factors. A host of new theories

emerged based on this new behavioral perspective. Some of the popular theories that struck

ground was Douglas McGregor’s Theory X and Theory Y, Abraham Maslow’s hierarchy of

needs theory that recognized the concept of individuals aspiring to reach a state of self-

actualization, Victor Vroom’s Expectation Theory, Alderfer’s ERG Theory, and more.

Government interventions led to the enactment of new legislations that guaranteed workers

more rights.

All these changed soon led to the transition from the administrative and passive Personnel

Management approach to a more dynamic Human Resource Management approach. This new

approach considered workers as valuable resources, a marked improvement from the earlier

approach of considering them as mere cogs.

OFT MANUAL: HRM Introduction to HRM SECTION - 1

4

While Personnel Management was a strictly staff function, Human Resource management

began to become an increasingly line management function, directly interlinked to the core

business operations. The major changes in approach from Personnel Management vs Human

Resource Management manifested in many ways, as explained below:

The recruitment and skill enhancement of the workforce having a direct bearing on

organizational profitability, efforts began to increase worker’s commitment and loyalty.

Motivation took the shape of challenging work environment, free holidays, creating an

active social community within the workforce, fringe benefits and the like, besides

monetary incentives.

Training acquired a new “Training and Development” dimension with the focus on

behavioral training to change attitudes and develop basic skills rather than remaining

limited to inculcating work-related skills.

Wage and Salary Administration became more complex with the introduction of

performance related pay, employee stock options and the like

The report-card based performance appraisal systems become more proactive with

new techniques such as Management by Objectives, 360 degree appraisals and the like

Emphasis on leadership instead of managing

The evolution of Human Resource Management took a new turn at the end of the 20th

century. Increased free market competition at global level and the proliferation of technology

and knowledge based industries raised the importance of human resources, and from an

obscure role a century ago, human resource management rose to become the most critical

function of an enterprise.

The workforce, hitherto considered as “resources” now became “assets” and a valuable

source of competitive advantage. The thrust of human resource management now lies in trying

to align individual goals and objectives with corporate goals and objectives, and rather than

enforce rules or dictate terms, act as a facilitator and promotes a participative approach.

These changes influenced Human Resources functions in many ways.

Increased reliance on performance based short term contracts instead of long term

employment

Direct linkage of compensation to the profitability of the enterprise and the

employee’s contribution towards such profitability

New dimensions for training and development function by encouraging and facilitating

innovation and creativity

Motivation through enriching the work experience

Performance and Talent Management displacing performance appraisals

Strategic Human Resource Management blurs the distinction between a specialized Human

Resource Management function and core operational activity, and very often, Human

Resource Management drives interventions such as Total Quality Management and the like.

OFT MANUAL: HRM Introduction to HRM SECTION - 1

5

1.3. Objectives of HRM

Human resource management (HRM) is concerned with personnel policies and managerial

practices and systems that influence the workforce. In broader terms, all decisions that affect

the workforce of the organization concern the HRM function. Therefore, in essence HRM is

an organizational function that focuses on recruitment and management of people within an

organization and gives them direction for work within the organization. HRM can also be

performed by line managers.

HRM is the organizational function that deals with employees therefore it deals with matters

related to an organization’s staff such as compensation, hiring, performance management,

organizational development, safety, wellness, benefits, employee motivation, communication,

administration, and training.

Human Resource Development. Stemming from HRM is the concept of Human

Resource Development (HRD). This is the framework within an organization for helping

employees develop their personal and organizational skills, knowledge, and abilities.

HRD and Organizational development. Human Resource Development consists of

prospects for employees’ professional growth and may consist of training, employee career

development, performance management and development, coaching, mentoring, succession

planning, key employee identification and tuition assistance. HRD ultimately results in

organizational development.

Exercise 1.1

Please circle the correct answer(s).

1. Human Resource Management is a:

a) Employees therefore it deals with matters related to an organization’s staff

b) Just hiring and performance management

c) Only deals with organizational safety, wellness, benefits, employee motivation,

communication, administration, and training

d) None of the above

2. HRM is the organizational function that deals with:

a) Staff Function only

b) Not a management function

c) Not a specialized HR function

d) Not linked to close business operations

1.4. Human Resource Planning

Human resources planning is the process of identifying current and future human resources

needs. It involves securing the right people, building a supportive work environment and

developing the capacity to ensure the organization's success and a confident future for the

Public Service

OFT MANUAL: HRM Introduction to HRM SECTION - 1

6

Succession Planning and Management Guide

Succession planning and management is an essential component of the broader human

resources planning process. It involves an integrated, systematic approach for identifying,

developing, and retaining capable and skilled employees in line with current and projected

business objectives.

Planning for HR needs will help to ensure employees have the skills and competencies an

organization needs to succeed. An HR plan works hand in hand with a business plan or work-

plan to determine the resources needed to achieve program goals. It will better prepare an

organization for staff turnover, recruitment, and strategic hiring – and alleviate stress when in

case of an emergency/last-minute hiring needs.

HR planning must be tied to the overall organizational Work plan.

One can start the process by assessing the current conditions and future goals of your

company. Perform these assessments regularly. Consider some of the following questions:

1. What are the organization’s goals and objectives?

2. Do these goals call for expansion into new area/sector?

3. Are new activities planned?

4. Are changes in technology necessary to stay competitive or to get the job done?

5. Will new skills and/or training be required to meet the organization’s goals and

objectives?

The following three-step method is designed to help you determine whether or not you are

ready to hire:

i. Identify project/organization Strategy and Needs

ii. Conduct a Job Analysis and Write a Job Description

iii. Determine the Feasibility of Hiring

1.5. HR Planning Model

The human resources planning model is a method organizations to make sure it has enough

employees and the right employees to carry out the various functions of the company. The

human resources planning model encompasses three key elements, which include:

Predicting the employees your company needs,

Analyzing if the supply of potential employees meets your demand and

Learning to balance the supply and demand of employees.

Forecasting Staffing Needs

There are several ways to forecast your business needs, in order to predict how many

employees an organization needs to meet its objectives and which roles these employees need

to fill. Some of the factors to consider include the situation of the job market, the internal

organizational finances and the targets the organization or program must achieve. The HR

OFT MANUAL: HRM Introduction to HRM SECTION - 1

7

department must look its existing staff and see which current employees are likely to

transition into new positions and estimate the turnover rate of employees for your business.

Evaluating Supply

Evaluating the supply of employees includes evaluating internal staff (which will occur as you

are forecasting your staffing needs) as well as external staff. Externally, you need to evaluate

the demographics of the workforce that is available. This can include factors such as education,

mobility, and the unemployment rate. Evaluating all of these factors helps you determine if

you have access to the number and types of employees you need to fill your staffing forecasts.

Balance Supply and Demand

The final element of the human resources planning model is to determine how you are going

to balance the demand you have for employees with the supply of employees available. If you

have a shortage of employees, this will determine what type of recruiting efforts your business

will participate in to attract the employees it needs to fill needs within the company. It also

requires you to balance your full-time and part-time needs. If you have a surplus of employees,

this requires you to consider employee layoffs, retirements and situations where employees

may need to be demoted or moved into a lateral position (rather than receiving a promotion).

OFT MANUAL: HRM Introduction to HRM SECTION - 1

8

Exercise 1.2

I. Human resources planning is the process which:

a) Just identifies current HR needs

b) Only identifies future human resources needs

c) Just involves securing the right people

d) Only builds a supportive work environment and developing the capacity to ensure the

organization's success and a confident future for the Public Service.

e) Only (a) above.

f) All of the above

g) None of the above

II. The human resources planning model does not determine how you are going to balance the

demand you have for employees with the supply of employees available. T/F

III. The final element of the human resources planning model is to determine how you are going

to balance the demand you have for employees with the supply of employees available. T/F

OFT MANUAL: HRM Introduction to HRM SECTION - 1

9

Recruitment and Selection

OFT MANUAL: HRM Recruitment and Selection SECTION - 2

10

2. Recruitment and Selection

In this session we look at the first stage of managing people – attracting and selecting staff.

Recruitment and selection are usually considered as one process. However, we will make the

distinction here between the initial actions and considerations when planning staff recruitment

and the process of selecting an individual from a pool of applicants. Recruitment needs to be

carefully planned in order to attract the right type of applicant. Ultimately, this increases the

chances of making a suitable selection and appointment. Your involvement may be limited to

a discussion of the need for a particular job within your team or work area, or you may be

required to interview job applicants. Whatever your involvement, this session makes it clear

that it is important for you to understand the whole process to make an effective contribution

to the staffing of your organization.

2.1. Recruitment

Recruitment is the initial attraction of a pool of key talent, to the organization. We recruit

applicants. Recruitment is all about attracting more applicants in to the gene pool, perform a

filtration process and select the right person(s) with the right qualifications and aspirations in

to the organization.

There are 3 things prepared by an HR department for a job role and the applicants generally

should match the following 3 categories before he/she apply for the Job.

Job Analysis

Job Description

Person Specification

Every organization small or big will carry out this process and will have a recruitment policy

which ensures that the recruitment process will be performed systematically and the recruited

employees all of these should be matched and linked with the overall organization

goal/strategy.

Purpose of Recruitment

The general purpose of recruitment is:

Provide the organization with a pool of aspirants from which to select people to fill

specific position.

To attract and engage people it needs to achieve its overall organizational objectives

Learning Objectives: After studying this unit you should be able to:

List the skills and knowledge needed to conduct full and fair recruitment and

selection, and be able to undertake it systematically.

Conduct a job interview with a prospective candidate and list the steps for the

interview process.

List the steps in making a job offer.

Understand the process of Staff induction and Orientation.

OFT MANUAL: HRM Recruitment and Selection SECTION - 2

11

Build positive impression of the recruitment process

Recruit right people who will fit in to the organizations culture and contribute to the

organizational goals.

2.2. Job Analysis

Job analysis is primary tool in personnel management. In this method, a personnel manager

tries to gather, synthesize and implement the information available regarding the workforce

in the concern. A personnel manager has to undertake job analysis so as to put right man on

right job.

The information collected under job analysis is:

Nature of jobs required in a concern.

Nature/size of organizational structure.

Type of people required to fit that structure.

The relationship of the job with other jobs in the concern.

Kind of qualifications and academic background required for jobs.

Provision of physical condition to support the activities of the concern. For example-

separate cabins for managers, special cabins for the supervisors, healthy condition for

workers, and adequate store room for store keeper.

Advantages of Job Analysis

Job analysis helps the personnel manager at the time of recruitment and selection of

right man on right job.

It helps him to understand extent and scope of training required in that field.

It helps in evaluating the job in which the worth of the job has to be evaluated.

In those instances where smooth work force is required in concern.

When he has to avoid overlapping of authority- responsibility relationship so that

distortion in chain of command doesn’t exist.

It also helps to chalk out the compensation plans for the employees.

It also helps the personnel manager to undertake performance appraisal effectively in

a concern.

There are two outcomes of job analysis:

Job description

Job specification

2.3. Job Description

Job Description is an organized factual statement of job contents in the form of duties and

responsibilities of a specific job. The preparation of job description is very important before

a vacancy is advertised. It tells in brief the nature and type of job. This type of document is

descriptive in nature and it constitutes all those facts which are related to a job such as:

OFT MANUAL: HRM Recruitment and Selection SECTION - 2

12

Title/ Designation of job and location in the concern.

The nature of duties and operations to be performed in that job.

The nature of authority- responsibility relationships.

Necessary qualifications that are required for job.

Relationship of that job with other jobs in a concern.

The provision of physical and working condition or the work environment required

in performance of that job.

Advantages of Job Description

It helps the supervisors in assigning work to the subordinates so that he can guide

and monitor their performances.

It helps in recruitment and selection procedures.

It assists in manpower planning.

It is also helpful in performance appraisal.

It is helpful in job evaluation in order to decide about rate of remuneration for a

specific job.

It also helps in chalking out training and development programs.

2.4. Job Specification

Job Specification is a statement which tells us minimum acceptable human qualities which helps

to perform a job. Job specification translates the job description into human qualifications so

that a job can be performed in a better manner. Job specification helps in hiring an appropriate

person for an appropriate position. The contents are:

Job title and designation

Educational qualifications for that title

Physical and other related attributes

Physique and mental health

Special attributes and abilities

Maturity and dependability

Relationship of that job with other jobs in a concern.

Advantages of Job Specification

It is helpful in preliminary screening in the selection procedure.

It helps in giving due justification to each job.

It also helps in designing training and development programs.

It helps the supervisors for counseling and monitoring performance of employees.

It helps in job evaluation.

OFT MANUAL: HRM Recruitment and Selection SECTION - 2

13

It helps the management to take decisions regarding promotion, transfers and giving

extra benefits to the employees.

From the above advantages, we can justify the importance of job analysis and its related

products. Both job description as well as job specification are important for personnel

manager in HR Functions. Therefore, job analysis is considered to be the primary tool of

personnel management.

Job Description is also a document that identifies the tasks, duties and responsibilities (TDRs)

required for a position. Employees know what is expected in job & defines accountability. It

helps eliminate duplication of responsibilities, identifies hiring criteria, i.e. qualifications and

experience and focuses on essential functions and specific knowledge, experience skills

needed to perform the job

Applicant Specification is a document that identifies the knowledge, skills, abilities and other

characteristics to perform the job.

Exercise 2.1

I. Please write the steps in bullet form that you will carry out in the selection and

recruitment process while hiring the HR manager.

II. Selection and recruitment aims at attracting:

a) Sufficient applications from potential candidates b) Just the right candidates for the job

c) Candidates at random who might be selected

III. Steps involved in the selection process are: {tick/circle the alphabet designating the

correct answer(s)}

a) Application

b) Test/interview

c) Making job title and designation

d) Writing the TORs

e) Medical examination

f) Reference check(s)

g) The nature of duties and tasks to be performed in that job

2.5. Selection

Selection is the process by which the applicants with the “best” skill sets and competencies

are chosen to be evaluated; through this process a candidate is appointed. We evaluate

candidates. Selection is the process of choosing the most suitable person out of all applicants.

According to Thomas “Selection is the process of differentiating between applicants in order

to identify those with greater likelihood of success in the job.” The selection process consists

of various steps. At each stage facts may come to light which may lead to rejection of the

applicant.

OFT MANUAL: HRM Recruitment and Selection SECTION - 2

14

2.6. Steps in selection

Following 5 steps are involved in the selection process:

I. Application

II. Preliminary interview: - Initial screening is done to weed out totally

undesirable/unqualified candidates at the outset. It is essentially a sorting process in

which prospective candidates are given necessary information about the nature of the

job and the organization.

III. Application blank: - Application form is a traditional and widely used device for collecting

information from candidates. The application form should provide all the information

relevant to selection.

IV. Selection test: - Psychological are being increasingly used in employee selection. A test

is sample of some aspects of an individual’s attitude, behavior and performance. It also

provides systematic basis from comparing the behavior, performance and attitudes of

two persons.

V. Employment interview: - An interview is a conversation between two persons. In

selection it involves a personal, observational and face to face appraisal of candidates for

employment.

VI. Medical examination: - Applicants who have crossed the above stages are sent for a

physical examination either to the company’s physician or to a medical officer

approved for the purpose.

VII. Reference checks: - The applicant is asked to mention in his application form the names

and addresses of two or three persons who know him well.

VIII. Final approval: - The shortlisted candidates by the department are finally approved by

the executives of the concerned department. Employment is offered in the form of

appointment letter mentioning the post, the rank, the grade, the date by which the

candidate should join and other terms and conditions in brief.

2.7. The Interview

An interview is the most common form of selection and it serves a very useful purpose for

both employer and job candidate. The main benefits of an interview include:

For the Employer:

Information that cannot be obtained on paper from a CV or application form

Conversational ability - often known as people skills

Natural enthusiasm or manner of applicant

See how applicant reacts under pressure

Queries or extra details missing from CV or application form

For the Candidate:

Whether job or business is right for them

What the culture of company is like

OFT MANUAL: HRM Recruitment and Selection SECTION - 2

15

Exact details of job

Preparing to Interview a Candidate

Arrange interview time, date and venue, decide who will be interviewing and what

format the interview will take. Communicate this to the candidates in writing to avoid

errors.

If interviewing several candidates in succession, make sure enough time is allowed

between interviews to write up notes, otherwise it is easy to forget what each

candidate said

Consider any specific requirements for disabled candidates and ensure that they are

in place. (e.g. suitable access for a candidate in a wheel chair)

Reviewed candidates CV.'.s thoroughly beforehand so you don't ask questions where

the answers are obvious from the C.V. Prepare questions for any areas that require

clarification.

Prepare suitable questions and put the same questions to each candidate. This ensures

a structured and measurable approach.

Create a relaxed and comfortable atmosphere.

Make sure there will be no interruptions throughout the interview, including phone

calls.

Introduce yourself and any other interviewers, and outline the interview process,

format and specific roles of each interviewer.

Thank the candidate for coming and indicate when they should expect feedback.

Take time after the interview to write up your notes as a reminder of the discussion.

This will help you remember each candidate when you come to make a decision on

who to hire.

If interviewing in a panel format, make sure you spend sufficient time to clarify and

agree how the interview will be structured and who is asking each of the questions.

During interviews ask open questions to elicit more information e.g. "Tell me about

the best team you have worked in?"

Indicate how long the interview is likely to take, what you are going to cover making

sure the candidate has the time and opportunity have time to ask questions.

OFT MANUAL: HRM Recruitment and Selection SECTION - 2

16

Exercise 2.2

I. You have shortlisted candidates for the position of HR manager and have asked them to

appear for an interview. The pre-interview check list that you will follow will include:.

{tick/circle the alphabet designating the correct answer(s)}

a. Arrange interview time, date and venue

b. Decide who will be interviewing

c. Do not arrange for venue

d. Do not consider any specific requirements for disabled candidates

e. Do not review candidates CV's beforehand so you don't ask questions where

the answers are obvious from the C.V.

f. Do not prepare questions for any areas that require clarification.

g. Prepare suitable questions and do not put the same questions to each

candidate. This ensures a structured and measurable approach.

h. During interviews do not ask open questions to elicit more information

i. Never indicate how long the interview is likely to take.

II. The main benefits of an interview include: (please tick the correct answers)

For the Employer:

a) Information that cannot be obtained on paper from a CV or application form

b) Conversational ability - often known as people skills

c) Natural enthusiasm or manner of applicant

d) See how applicant reacts under pressure

e) What the culture of company is like

For the Candidate

a) Whether job or business is right for them

b) Exact details of job

c) Queries or extra details missing from CV or application form

2.8. Job Offer

The job offer contains the details of your offer of employment including:

Salary,

Benefits,

Position job title,

Name of the supervisor of the position, and

Other terms and conditions of employment.

The job offer may be negotiable, depending on the position. Or the employer and the prospect

may have negotiated the details of the offer prior to the formal, written offer.

OFT MANUAL: HRM Recruitment and Selection SECTION - 2

17

Steps in Making a Job Offer

The employees who were involved in interviewing prospective employees make their

recommendations to the hiring manager who makes the final decision, in conjunction with

Human Resources staff, about the candidate to hire.

The salary and benefits package were decided upon earlier in the recruitment process, often

as early as the determination of the need for a position. The hiring manager makes these

decisions in conjunction with HR and in consideration of his or her budget for the position.

With the help of HR, and depending on your company protocol, informal communication

about compensation occurs between the hiring manager or HR and the selected candidate.

(Occasionally, this discussion occurs in email.) You should always use a point person for the

compensation discussion. If several people are involved, the possibility of misinformation, a

misunderstanding, and potentially, a lost candidate, increases.

When salary range and benefits have been discussed and understood during the interview

process, this step can progress smoothly.

You will have more leeway to negotiate and make counter offers with higher level positions.

Beginning to mid-career positions have salary ranges and benefits packages that are standard

for new employees. You may experience a potential employee who looks at your salary offer

and counter offers with a request for a few thousand more Rupees. Depending on how you

value the candidate, and your time investment in reopening recruitment, you may agree, or

not.

This informal approach culminates in the preparation of a job offer letter that confirms the

terms the employer and the candidate have agreed to verbally and in email for his or her

employment during negotiations. Generally, the candidate signs and returns the letter upon

receipt.

Most employers start the job offer with a standard job offer letter or contract. In this scenario,

the prospective employee may accept the job offer or make a counter offer that usually asks

for a higher salary, potentially expanded benefits, and additional perks that were not in the

job offer letter.

Senior candidates for higher level jobs are also likely to ask that the terms of severance, if the

relationship fails to work out, are spelled out in the employment contract. The more senior

the position, the more likely the candidate is to negotiate. The negotiation can last several

weeks as a senior candidate – with reason - will generally ask an attorney to review the

employment contract.

When all goes well, the result of the job offer process is an employee who joins your company

excited and looking forward to making contributions, getting to know coworkers, and forging

a relationship that will last for years. HR, the hiring manager, and participating staff can

celebrate the successful recruitment and hiring of a qualified person whose employment they

are excited to welcome.

OFT MANUAL: HRM Recruitment and Selection SECTION - 2

18

Exercise 2.3

I. You have shortlisted the HR Manager, Just list the first three steps will you follow in

making a job offer:

a. __________________________________________

b. __________________________________________

c. __________________________________________

II. As candidate who has been made a job offer you will:

a) Generally sign and return the offer letter

b) Keep the letter without signing and call the HR officer making the offer that you

accept the offer.

c) Never make a counter offer asking for a higher salary

OFT MANUAL: HRM Recruitment and Selection SECTION - 2

19

2.9. Induction and Orientation

When new staff members join an organization, a distinction is often made between their

orientation and their induction to the new work environment. The orientation of new staff is

usually seen as comprising a short one-off briefing session and the provision of basic

information, for example in the form of an information kit.

Induction refers to the process of helping people make the transition into a new workplace,

a new role, or area of responsibility. It is considered to be a continuous process which

generally starts with contact prior to taking up employment and proceeds through arrival,

first days/weeks on the job and generally up to the third month or even first twelve months

of employment.

Effective orientation and induction is essential for all staff, regardless of position category or

conditions of employment, and should incorporate:

An understanding of the specific experience, knowledge, needs, role and

responsibilities of the individual who joins the organization;

The particular characteristics of the local workplace that the new staff member is

entering;

The wider context, i.e. orientation to the organization and the context of higher

education;

The appropriate coaching and monitoring of performance of the new staff member,

so that an informed decision may be made by both the new staff member and their

supervisor with respect to confirmation of employment at the completion of a

probationary period.

Benefits to the new staff member Benefits to the organization

Feeling welcomed and supported, beginning

the process of successful integration into

their new workplace.

Assisting new staff to understand the culture

and values of the Organization.

Gaining a positive perception of the

University and local workplace. Potentially retaining staff longer.

Gaining access to essential information

about the University in general and their

workplace, role and responsibilities.

Reducing the time for a new staff member to

become effective in their role.

Being well positioned to confirm their

decision to join the organization.

Setting the framework for ongoing

professional development through the

appropriate performance management

process.

Early understanding of the purpose of their

position and how it fits into the

organization’s mission and strategic goals.

Ensuring that the organization has complied

with requirements to provide staff with

information, instruction and training.

OFT MANUAL: HRM Recruitment and Selection SECTION - 2

20

Exercise 2.4

I. You have recruited the HR Manager, list the steps in bullet form that will you follow

in the induction and orientation process.

OFT MANUAL: HRM Recruitment and Selection SECTION - 2

21

Employee Management

OFT MANUAL: HRM Employee Management SECTION - 3

22

3. Employee Management

3.1. Work Ethics

Ethics are moral values which affect personal or professional actions. They are more than a

set of rules. Ethics are knowing how to apply the rules and having the strength of character

to behave in an ethical manner. A strong work ethic is vital to an organization achieving its

goals. Every employee, from the CEO to entry-level workers, must have a good work ethic

to keep the company functioning at its peak. A work ethic is a set of moral principles an

employee uses in his job. Following factors come together to create a strong work ethic.

I. Integrity

Integrity stretches to all aspects of an employee's job. An employee with integrity fosters

trusting relationships with clients, coworkers and supervisors. Coworkers value the

employee's ability to give honest feedback. Clients trust the employee's advice.

Supervisors rely on the employee's high moral standards, trusting him not to steal from

the company or create problems.

II. Sense of Responsibility

A strong sense of responsibility affects how an employee works and the amount of work

he/she does. When the employee feels personally responsible for her job performance,

she shows up on time, puts in her best effort and completes projects to the best of her

ability.

III. Emphasis on Quality

Some employees do only the bare minimum, just enough to keep their job intact.

Employees with a strong work ethic care about the quality of their work. They do their

best to produce great work, not merely churn out what is needed. The employee's

commitment to quality improves the company's overall quality.

IV. Discipline

It takes a certain level of commitment to finish your tasks every day. An employee with

good discipline stays focused on his goals and is determined to complete his assignments.

These employees show a high level of dedication to the company, always ensuring they do

their part.

Learning Objectives: After studying this unit you should be able to:

Define work ethics and its role within an organization.

Understand importance of performance management in basis for pay increases,

promotions, transfers, assignments, and reductions in force or other

administrative HR actions.

Understand the role of HR in the importance of training for an organization in

meeting its goals.

OFT MANUAL: HRM Employee Management SECTION - 3

23

V. Sense of Team Work

Most employees have to work together to meet a company's objectives. An employee

with a high sense of teamwork helps a team meet its goals and deliver quality work. These

employees respect their peers and help where they can, making collaborations go

smoother.

Work ethics translates into an attitude about work. Having good work ethics means you value

the opportunity to work . . . it is an attitude. For those people, their attitude towards work

is that being able to work is a treasure. When employers promote an individual, they list

work ethics as a key issue in their selection process. Ina Lavin, Director of Human Resources

for Be Free, Inc. stated "Good work ethics is an expectation of our managers. If you do not

have good work ethics, you will not be successful."

If you are not moving up in the company, ask yourself the following questions about your

attitude towards work. If your career is really important to you, it may be time to do an

honest self-evaluation.

Do you have a positive attitude about your job and the company you work for on a daily

basis? It is really hard for an employer to believe you exude strong work ethics, if you do not

project how much you love your job and the company. If you are grumbling, complaining or

part of the "whiner's club" at work, you will never convince your boss that you have good

work ethics, or that you should be promoted.

Do you have a high-level of energy at work? To be appointed to manage a large project, you

need to make the boss believe you can handle it easily. This is where a healthy lifestyle is

critical, with proper rest, nutrition and exercise all-important to your success. Burning the

candles at both ends will burn you out.

Do you do your job right the first time? This question really comes back to attitude about

your job. If you do your job in a haphazard fashion, you really display a poor attitude about

work. In addition, this situation causes a real productivity problem for your company. If you

do it wrong the first time, you will be doing it over and over until you get it right.

Are you willing to work overtime when the company needs you? The employer today needs

employees who will be there for them when it counts. In information technology, you will

most likely work overtime if you are part of a start-up company or if you are working on a

project implementation. In many cases, many high-paying positions do require overtime. This

is not an unusual way of life in IT, as well as in many white-collar positions today. If your

company needs you and you are not willing to put the time in, you should not wonder why

you are always passed over at promotions.

It is amazing how quickly people forget how visible they are in a small company, where every

employee must handle multiple tasks. Even in a large corporation, in a team environment, the

team player that does not put in their share is quickly labeled as "lazy".

Work ethics include not only how one feels about their job, career or vocation, but also how

one does his/her job or responsibilities. This involves attitude, behavior, respect,

OFT MANUAL: HRM Employee Management SECTION - 3

24

communication, and interaction; how one gets along with others. Work ethics demonstrate

many things about whom and how a person is.

Work ethics involve such characteristics as honesty and accountability. Essentially, work

ethics break down to what one does or would do in a particular situation. The begging

question in a situation involves what is right and acceptable, and above board, versus what is

wrong, underhanded, and under the table.

Exercise 3.1

I. As a manager, heading the human resource department of your organization, you are

asked to list down work ethics for your department. Please list down the requisite

ingredients:

a. _______________________________________

b. _______________________________________

c. _______________________________________

d. _______________________________________

e. _______________________________________

II. Good work ethics do not require a positive attitude towards one’s work. T/F

3.2. Performance Management

It is a reiterative process of goal-setting, communication, observation and evaluation to

support, retain and develop exceptional employees for organizational success. Performance

management (PM) includes activities which ensure that goals are consistently being met in an

effective and efficient manner. Performance management can focus on the performance of an

organization, a department, employee, or even the processes to build a product of service, as

well as many other areas.

PM is also known as a process by which organizations align their resources, systems and

employees to strategic objectives and priorities. Performance management as referenced by

Dr. Aubrey Daniels in the late 1970s describes a technology (i.e. science imbedded in

applications methods) for managing both behavior and results, two critical elements of what

is known as performance.

Possible Outcomes from Effective Performance Management

Clarifying job responsibilities and expectations.

Enhancing individual and group productivity.

Developing employee capabilities to their fullest extent through effective feedback

and coaching.

OFT MANUAL: HRM Employee Management SECTION - 3

25

Driving behavior to align with the organization’s core values, goals and strategy.

Providing a basis for making operational human capital decisions (e.g., pay).

Improving communication between employees and managers.

Overview of the Performance Management Process

While research and experienced practitioners have identified several characteristics that are

prerequisites for effective performance management systems, there are also many decisions

that need to be made to design a system ideally suited for a given organization’s needs. One

such decision is what purpose(s) the system will serve. For instance, performance

management systems can support pay decisions, promotion decisions, employee development

and reductions in force. A performance management system that attempts to achieve too

many objectives is likely to die of its own lack of focus and weight. There is no one type of

system or set of objectives that is best suited for all organizations. The purposes for a given

performance management system should be determined by considering business needs,

organizational culture and the system’s integration with other human resource management

systems.

When a performance management system is used for decision-making, the appraisal

information is used as a basis for pay increases, promotions, transfers, assignments, reductions

in force or other administrative HR actions. When a performance management system is used

for development, the appraisal information is used to guide the training, job experiences,

mentoring and other developmental activities that employees will engage in to develop their

capabilities. Although it is theoretically possible to have a performance management system

that serves both decision-making and development purposes well, this can be difficult to

achieve in practice. In addition, research has shown that the purpose of the rating (decision-

making versus development) affects the ratings that are observed.

Ratings used for decision-making tend to be lenient, with most employees receiving ratings

on the high end of the scale. Ratings for developmental purposes tend to be more variable,

reflecting both employee strengths and development needs. An example will illustrate why it

can be difficult to emphasize equally decision-making and development within the same

system. Managers in this organization evaluate their employees and then meet to calibrate

their ratings and make reward decisions. Managers then conduct review sessions with every

employee to discuss the employee’s performance, pay increase and stock option grant.

Developmental feedback is supposed to be included in the meeting. However, the range of

percentage increases and stock options is large, thereby allowing managers to link

performance with rewards effectively. With so much at stake, the majority of the meeting

typically focuses on justification by both parties, rather than on how the employee can

develop. The climate of the meeting is not conducive to giving and receiving feedback, and

employees are reticent to discuss their development needs for fear this will negatively impact

their rewards. Even in the strong performance-based culture of this organization, the decision-

making aspect of performance is, by default, given more emphasis. Effective performance

management systems have a well-articulated process for accomplishing evaluation activities,

with defined roles and timelines for both managers and employees. Especially in organizations

OFT MANUAL: HRM Employee Management SECTION - 3

26

that use performance management as a basis for pay and other HR decisions, it is important

to ensure that all employees are treated in a fair and equitable manner.

3.3. Performance Planning

At the beginning of the performance management cycle, it is important to review with

employees their performance expectations, including both the behaviors employees are

expected to exhibit and the results they are expected to achieve during the upcoming rating

cycle. Behaviors are important because they reflect how an employee goes about getting the

job done—how the individual supports the team, communicates, mentors others and so forth.

We are all familiar with employees who may achieve exceptional results but are extremely

difficult to work with, unhelpful or exhibit maladaptive behaviors at work. Because such

behaviors can be extremely disruptive, behavior is important to consider in most work

situations. On the other hand, an employee can be extremely helpful, considerate and

interpersonally effective, yet never achieve any important results.

Exercise 3.2

I. Planning for the Performance Management Process helps an organization in:

a. Review employee’s job description

b. Understand the performance measurement system

c. Review notes from the year

d. Understand employee expectations

e. All of the above

f. Only “a”

II. Setting Effective Goals will be:

a. Specific

b. Measurable

c. Achievable/Agreed Upon

d. Relevant

e. Time-bound

f. Only “a” and “b”.

3.4. Training and Development

Training and Development refers to the process to obtain or transfer knowledge, skills and

abilities needed to carry out a specific activity or task. Training is a systematic process through

which an organization’s human resources gain knowledge and develop skills by instruction and

practical activities that result in improved corporate performance. Training may be defined

as “An organization’s planned efforts to help employees acquire job-related knowledge, skills,

abilities, and behaviors, with the goal of applying these on the job.”

OFT MANUAL: HRM Employee Management SECTION - 3

27

Differences between Training, Education & Development

Training Education Development

Training is short term, task

oriented and targeted on

achieving a change of

attitude, skills and

knowledge in a specific area.

It is usually job related.

Education is a lifetime

investment. It tends to be

initiated by a person in the

area of his/her interest

Development is a long

term investment in human

resources.

An Ideal Training is:

Linked to business goals and performance.

Part of a company-wide strategy.

Focused on setting tangible objectives for Employees.

Part of a company policy.

Scope:

Role of HR in training and development

Training and development

Learning organizations

Evaluation of training and development programs

HR Role in Training and Development:

Training for tasks leading to successful operations and program implementation.

An in-depth understanding of the business environment.

An insight regarding training and development options.

Career development approach to weld-in individuals/groups into organizational

effectiveness.

Knowledge sharing to improve organizational performance

Types of Trainings

On the Job Off the Job

Orientation

Apprentice

Committee assignments

Vestibule

Role playing

Lecture

Case discussion

Conference

OFT MANUAL: HRM Employee Management SECTION - 3

28

Exercise 3.3

I. An ideal training program is always:

a. On the job training

b. Linked to business goals and performance

c. In a class room setting

d. A lecture based program

e. All of the above

II. Training and development is the process of:

a. Obtain or transfer knowledge and skills

b. Just manual skills

c. Just theoretical knowledge about a process

d. Only vocational skills and knowledge

OFT MANUAL: HRM Employee Management SECTION - 3

29

Conflict Management

OFT MANUAL: HRM Conflict Management SECTION - 4

30

4. Conflict Management

When individuals work together, they may have different goals and work styles. Because of

this, conflict can result. If the conflict is handled effectively, a potential destructive force can

be turned into an opportunity for creativity and greater productivity. Conflicts give rise to

grievances and in certain cases do require the organization to take disciplinary action against

both or any of the parties involved in the conflict.

4.1. Grievance Management

Grievance may be any genuine or imaginary feeling of dissatisfaction or injustice which an

employee experiences about his job and its nature, about the management policies and

procedures. It must be expressed by the employee and brought to the notice of the

management and the organization. Grievances take the form of collective disputes when they

are not resolved. Also they will then lower the morale and efficiency of the employees.

Unattended grievances result in frustration, dissatisfaction, low productivity, lack of interest

in work, absenteeism, etc. In short, grievance arises when employees’ expectations are not

fulfilled from the organization as a result of which a feeling of discontentment and

dissatisfaction arises. This dissatisfaction must crop up from employment issues and not from

personal issues.

Grievance may result from the following factors:

Improper working conditions such as strict production standards, unsafe workplace,

bad relation with managers, etc.

Irrational management policies such as overtime, transfers, demotions, inappropriate

salary structure, etc.

Violation of organizational rules and practices

Management must encourage open and honest communication and all staff members must

reserve the right to use grievance procedures to address their problems.

The manager should immediately identify all grievances and must take appropriate steps to

eliminate the causes of such grievances so that the employees remain loyal and committed to

their work. Effective grievance management is an essential part of personnel management.

The managers should adopt the following approach to manage grievance effectively:

Quick Action: As soon as the grievance arises, it should be identified and resolved.

Training must be given to the managers to effectively and timely manage a grievance. This

will lower the detrimental effects of grievance on the employees and their performance.

Learning Objectives: After studying this unit you should be able to:

Define work grievance management and its role within an organization.

Define disciplinary action process within an organization

Understand the concept and process of whistle-blowing

OFT MANUAL: HRM Conflict Management SECTION - 4

31

Acknowledging Grievance: The manager must acknowledge the grievance put forward

by the employee as manifestation of true and real feelings of the employees.

Acknowledgement by the manager implies that the manager is eager to look into the

complaint impartially and without any bias. This will create a conducive work environment

with instances of grievance reduced.

Gathering Facts: The managers should gather appropriate and sufficient facts explaining

the grievance’s nature. A record of such facts must be maintained so that these can be

used in later stage of grievance redressal.

Examining the Causes of Grievance: The actual cause of grievance should be

identified. Accordingly remedial actions should be taken to prevent repetition of the

grievance.

Decisioning: After identifying the causes of grievance, alternative course of actions

should be thought of to manage the grievance. The effect of each course of action on the

existing and future management policies and procedure should be analyzed and

accordingly decision should be taken by the manager.

Execution and Review: The manager should execute the decision quickly, ignoring the

fact, that it may or may not hurt the employees concerned. After implementing the

decision, a follow-up must be there to ensure that the grievance has been resolved

completely and adequately.

An effective grievance procedure ensures an amiable work environment because it redresses

the grievance to mutual satisfaction of both the employees and the managers. It also helps the

management to frame policies and procedures acceptable to the employees. It becomes an

effective medium for the employees to express t feelings, discontent and dissatisfaction openly

and formally.

Exercise 4.1

I. Employee grievances are the result of:

a. Imaginary feelings

b. Dissatisfaction or injustice which an employee feels

c. Strict work quality standards

d. Violation of organizational rules and practices by an employer

II. In addressing employee grievance the best approach is to:

a. Not listen to an employee

b. Identify the source of the grievance

c. Ignore facts and do what is best for the organization

OFT MANUAL: HRM Conflict Management SECTION - 4

32

4.2. Disciplinary Action

All employees are expected to meet performance standards and behave appropriately in the

workplace. Disciplinary or corrective action is a process of communicating with the employee

to improve unacceptable behavior or performance. You may take disciplinary action when

other methods such as coaching and performance appraisal have not been successful. In cases

of serious misconduct, you may choose to proceed straight to disciplinary action. Reviewing

the merit of each case before taking disciplinary action will help you determine whether

discipline is the best approach to problem-solving in a particular situation. It is prudent to

consult your Labor & Employee Relations (L/ER) Analyst before initiating disciplinary action.

Disciplinary Alternatives

When deciding what disciplinary action to take, keep in mind that discipline is supposed to be

constructive. Your goal is to guide the employee to improve performance or correct

inappropriate behavior, not to punish the employee. As a general rule, your action should be

just enough to get the employee's attention. However, you may have to take progressively

more serious actions if there is no improvement or if repeat occurrences follow. You need

not take each of these actions, but you will normally take more than one of them. Your

alternatives are:

A. Oral Warning:

Set a time and place to ensure privacy.

Make notes about what you want to say in advance.

Remember that the employee may have a right to representation.

State clearly that you are issuing an oral warning.

Be specific in describing the unacceptable performance or behavior.

Remind the employee of the acceptable standards or rules. If they are available in

writing, provide them to the employee.

State the consequences of failure to demonstrate immediate and sustained

improvement: Further disciplinary action may be the result.

Note the oral warning on your calendar and key elements of discussion.

B. Written Warning:

If you gave an oral warning and the problem performance or behavior persists, a written

warning may be effective. You may decide to use this disciplinary action more than once, to

get the employee's attention. Be careful, however, not to get stuck issuing repetitive letters

of warning that fail to influence the employee's behavior or performance. Consult with your

L/ER Analyst. Following steps must be taken in to consideration while issuing a written

warning:

State clearly at the outset of the letter that it is a written warning, and cite the

appropriate personnel policy or contract provision.

Describe the performance problem(s) or work rule violation(s) in very specific detail

and attach documents which support your conclusions.

OFT MANUAL: HRM Conflict Management SECTION - 4

33

Outline previous steps taken to acquaint the employee with the issue (coaching

sessions, performance appraisals, and previous disciplinary actions) and attach copies

of the documents.

Describe the impact of the problem (safety issues, need to reassign work).

Note the employee's explanation (as revealed during your investigation) or that the

employee declined to offer one. If it was unacceptable, explain why.

Reiterate your expectations regarding behavior and/or performance.

Note that if the employee doesn't demonstrate immediate and sustained

improvement, the consequence will be further disciplinary action, up to and including

dismissal.

Refer the employee to the appropriate policy or contract provision for appeal rights.

Deliver the warning letter to the employee and place it in the employee's

departmental personnel file using appropriate delivery procedures such as "Proof of

Service."

Suspension without Pay

This is normally the next stage in progressive discipline after written warning(s). Suspension

typically prevents work for a number of working days, as specified in the letter, and pay is

docked accordingly. Length of a suspension without pay will be influenced by policy or

contract requirements.

The letter states that it is a suspension without pay, the appropriate policy or contract

provision, and the number of days the employee will be suspended. It also (as with a letter of

warning) describes the problem, previous corrective measures, impact of the problem, your

expectations, consequences of failure to improve, and the employee's appeal rights.

Depending upon the personnel program the employee belongs to, you may be required to

issue a letter of intent to suspend, which provides the employee with the right to appeal your

intended action to the next higher management level before the action is implemented.

Consult your L/ER Analyst as well as the policy or contract for more information.

Reduction of Pay within a Class

This alternative is normally used when you do not wish to remove the employee from the

work site, but serious discipline is appropriate. It is most appropriately used in lieu of

suspension without pay, in cases of chronic absenteeism or tardiness.

The reduction of pay is for a specific period of time, related to the seriousness of the

performance discrepancy or work rule violation, and noted in the letter. The disciplinary letter

will incorporate the same elements included in a suspension letter. You may have to issue a

letter of intent similar to that used in cases of suspension. Consult your L/ER Analyst on the

procedure.

OFT MANUAL: HRM Conflict Management SECTION - 4

34

Demotion to a Lower Classification

This action involves movement of an employee to a lower level position, and may be

temporary or permanent. Demotion is most often appropriate in cases of inadequate

performance of responsibilities at a particular level, rather than violation of work rules. It

should be based upon a reasonable expectation that the employee will perform successfully

in the lower classified position. For example, did the employee previously hold a similar

position, and did they perform satisfactorily?

Your notice letter and process are quite similar to those used for a suspension without pay,

or a reduction of pay within class. Contact your L/ER Analyst if you are considering this

disciplinary alternative.

Dismissal

This alternative is normally selected after performance counseling and progressive discipline

have failed to get the employee's attention to the problem. As a supervisor, it is perfectly

natural for you to feel frustrated when an employee repeatedly fails to perform satisfactorily

or follow the rules. Keep in mind, however, that most employees come to work wanting to

do a good job. Some will require more specific and frequent feedback than others to

understand what that means in your work site and in the jobs under your supervision.

Frequency of feedback will largely depend on what you observe in the employee's behavior

and performance and on the cycles of the work (e.g., tardiness can be corrected immediately,

but it may take days or weeks to complete a particular project or task for your review).

Remember that the purpose of disciplinary action is to turn performance around by continuing

to identify problems, causes, and solutions. If you can accomplish it in a positive and

constructive way, you will send a message that you are out not to punish, but to help the

employee become a fully productive member of your work unit.

Guiding Principles

In carrying out disciplinary action be sure to:

Maintain a professional manner by keeping the disciplinary process confidential

between you and the employee.

Make a careful diagnosis of the problem to determine whether disciplinary action is

appropriate

Provide specific examples of performance discrepancies or work rule violations so

the employee fully understands what needs correction

Allow the employee ample opportunity to explain so that you have all the facts

Make sure discipline is the appropriate tool. Would coaching or performance

appraisal be sufficient to get the employee's attention?

When you take disciplinary action, make sure the punishment fits the crime

Help the employee improve performance by providing specific recommendations and

requirements.

OFT MANUAL: HRM Conflict Management SECTION - 4

35

Communicate clearly so the employee understands the consequences if performance

or conduct does not improve.

Exercise 4.2

1. As a manager you are asked to carry out disciplinary action. You will ensure the

following:

a. Go by your gut feeling and do what is right.

b. Provide specific examples of performance discrepancies or work rule violations

so the employee fully understands what needs correction

c. Just fire the employee as an example of strict discipline

d. Only use coaching and performance appraisal to get the employee's attention

e. None of the above

4.3. Whistle Blowing

The term whistleblowing can be defined as raising a concern about a wrong doing within an

organization. The concern must be a genuine concern about a crime, criminal offence,

miscarriage of justice, dangers to health and safety and of the environment, and the cover up

of any of these.

Whistle blowing tries to make others aware of practices that are considered illegal or

immoral. Morality is the biggest reason for the act of whistle blowing, as generally people want

to do the good moral thing. Whistleblowing is not the same as a complaint. Complaints from

service users, relatives or representatives would not be classed as whistleblowing. These

would need to be raised using the service’s complaints procedure.

Whistle blowing serves various important purposes that include: providing avenues for

employees to raise concerns and define a way to handle unethical practices, reassure

employees will be protected from punishment or unfair treatment for disclosing concerns in

good faith, enable management to be informed at an early stage about acts of misconduct, and

develop a culture of openness, accountability, and integrity. Whistle blowing is a controversial

organizational issue. On the positive side, whistle blowers can help organizations correct

unsafe products or working conditions and curb fraudulent or wasteful practices.

There are two main types of whistle blowing.

A. Internal Whistle Blowing

Internal whistleblowers are employees who discover misconduct in the workplace and

communicate this to their supervisor, who then follows established procedures to address

the misconduct within the organization. Internal whistleblowing tends to do less damage to

the company.

B. External Whistle Blowing

External whistleblowers are employees who discover corporate misconduct and choose to

bring it to the attention of external parties, such as law enforcement agencies or the media.

OFT MANUAL: HRM Conflict Management SECTION - 4

36

External whistleblowing tends to affect the company in a negative way as it results in bad

publicity.

C. Personal Whistle Blowing

Whistle blowing is personal if the wrongdoing taking place in the organization or the system

only affects the individual (whistle blower). Such type of whistle blowing takes place in cases

such as sexual harassment, discrimination etc.

D. Impersonal Whistle Blowing

Whistle blowing is impersonal if the wrongdoing that is reported is causing harm not just to

an individual but a large group or in other words at mass scale. Such types of whistle blowing

take place when corruption is reported in a public service project, or against a company

producing harmful products.

Process of Whistle Blowing

Typically the whistle blowing process comprises of 5 main steps:

Step – 1: Recognition: Event seen as risk or wrongdoing

Step – 2: Assessment: Choosing between “neglect”, “exit”, and “voice”

Step – 3: Action: Blowing the Whistle (recipient/content/form)

Step – 4: Reactions: By the addressee and/or the organization and its members

Step – 5: Evaluations: Of reaction as success or failure

Consequences of Whistle Blowing

Whistle-blowers come forward publicly when something illegal or unethical is going on in

their organizations after they do not receive an acceptable reply internally when

communicating concern. Whistle-blowers are often ostracized in their organization and face

the dilemma of protecting their employer or stepping forward when something inappropriate

is going on. Whistle blowers can face the following consequences:

I. Challenge Trust

Whistle blowing can lead to a breakdown of trust. Organizations typically prefer that

employees use internal communication systems if they are uncomfortable with activities going

on in their departments or the company. This gives the company a chance to monitor itself

internally before the employee decides to go elsewhere. If trust breaks down between

managers and employees, tension and effective working relationships among employees

become challenging.

II. Retaliation

Whistle blowers may face hostility and resentment from peers and superiors. Although large

organizations and donors have ramped up legal protection for whistle-blowers. Still, a whistle

blower may get the cold shoulder or be treated like a "rat" or "snitch." This culture of

retaliation creates a hostile workplace for the whistle blower and distracts employees from

their tasks.

OFT MANUAL: HRM Conflict Management SECTION - 4

37

III. Broken Chain of Command

Whistle blowing may take place because the employee feels like his/her supervisor or other

company leaders do not take his/her message seriously. Other whistle blowers bypass the

chain of command because they fear repercussions for going against the company. The hazard

if employees routinely ignore the chain of command in communicating issues or concerns is

that it negatively affect this important system of management and authority. Company leaders

need to create a culture that encourages employees to communicate concerns internally to

avoid potential degradation of respect for management.

IV. Organizational Repercussions

Whistle-blowing behavior can bring legal or market-related consequences for the

organization. Of course, if the organization and its leaders knowingly participate in or endorse

illegal or unethical activities, they might expect to face fallout if word gets out. Employees in

an organization that do not participate in or have no awareness of inappropriate activities are

typically affected if the company faces legal claims or public backlash.

Whistle Blowing Facility by USAID

U.S. Agency for International Development (USAID) and Transparency International Pakistan

(TIP) signed a five (5) year cooperative agreement on 22nd September 2010 at Islamabad for

the "Anti-Fraud Hotline" Project. The objective of the Project is to ensure Transparency and

prevention of corruption in the utilization of grant to be provided to Pakistan by USAID,

including the US $ 7.5 billion of Kerry Lugar Bill. Citizens and civil society organizations are

welcome to report corruption and register complaints directly through Anti-Fraud Hotline

website.

USAID contractors and implementers have an affirmative obligation to report allegations of

fraud related to USAID projects under both the Federal Acquisition Regulations (FAR) and

USAID regulations. The timely reporting of fraud allegations allows the Office of Inspector

General (OIG) USAID, and the implementer to efficiently protect taxpayer funds while moving

forward with important program activities. Examples of schemes uncovered in USAID funded

projects include: corruption (bribery, kickbacks, and gratuities), collusive behavior between

vendors and/or procurement staff, product substitution, false claims (billing for goods and

services not provided), embezzlement or theft, and other types of procurement fraud.

Complaint Handling Protocol

There are two methods by which complaints will reach Transparency International (TI)

Pakistan.

I. Through scanning of procurement notices of USAID funded projects published in

newspapers and PPRA website and keeping constant watch if any violations of rules have

been committed.

II. By complaints received through Anti-Fraud Hotline web, email, toll free phone, fax, mail or

visit to TI office.

OFT MANUAL: HRM Conflict Management SECTION - 4

38

After noticing the violation of rules/ receipt of a complaint, it will be examined to determine

under which of the following categories the complaint pertain to:

A. Procurement

a. Tender stage till award of contract

b. Post award stage including contract implementation, abuse of specifications, bogus

payments, and unnecessary additional works.

B. Administrative, including corruption in appointments, postings, terminations etc.

C. Disbursements of grants to affected persons such as IDPs, Poverty Alleviation grantees,

natural disaster victims etc.

D. Others.

All complaints will be uploaded on to the Anti-Fraud Hotline either by the complainant though

web, or by TI Pakistan Staff dealing complaints. All the complaints will be tracked by OIG on

line. Daily report of registered complaints data will be generated and automatically emailed to

OIG.

USAID Pakistan Anti – Fraud Hotline

Telephone: 021 - 35390408-9

Toll Free Number 0800 – 84700

E-Mail: complaints@anti-fraudhotline.com

Fax: 021 – 35390410 www.anti-fraudhotline.com

US-Based OIG Hotline (DC)

Hotline Number 1-800-230-6539

E-Mail: ig.hotline@usaid.gov

Address: USAID/OIG, P.O. Box 657

Washington, DC. 2044-0657

Exercise 4.3

1. A complaint by a service user is called Whistle blowing (T/F)

2. If the media is involved in the whistle blowing process, it is impersonal whistle

blowing (T/F)

OFT MANUAL: HRM Conflict Management SECTION - 4

39

Downsizing and Termination

40

5. Downsizing and Termination

5.1. Downsizing

Downsizing is the process of reducing the number of people working for an organization by

retirements, spinoffs and terminations. Downsizing also known as restructuring and

rightsizing. It is the reverse of a company growing, and suggests a one-time change (mainly

reduction) in the number of people employed. Downsizing is often the result of poor

economic conditions where the organization needs to cut jobs in order to lower costs and

maintain its existence. Instead of terminating workers, the organization shrinks its payroll by

permanently eliminating positions. Organizations which downsize must still follow concerned

laws.

Redundancy

Redundancy is the act of terminating an employment when the requirements for employees

to perform work of a specific type or to conduct it at the location in which they are employed

have ceased or diminished. Redundancy is the next stage of downsizing. It is a situation where

the employees are terminated for business reasons such as poor economic conditions, or

project closure. Redundancies can be controversial, particularly if businesses must select who

is to be made redundant. A commonly-used technique is Last In, First Out (LIFO), whereby

the employees who have joined most recently are considered first for redundancy. This in

itself is controversial; critics say it disadvantages young workers who will inevitably have less-

established careers.

Reasons for Downsizing

Structural Decline: Some organizations may reduce certain areas of operation and

focus on other areas. For example, if an organization is working on a certain thematic area

in which no more projects are anticipated, it may downsize its employees working on that

particular project. It will then focus its resources on specific projects which could be more

profitable.

Outsourcing: Organizations involved in mass scale work, often require a huge and

efficient employee base. If this labor can be obtained by exporting the job to other

organizations with a lower cost structure, a huge downsizing takes place in the main

organization.

Economic Crisis: This is the biggest cause of downsizing. Often it consists of huge layoffs

by a number of organizations across various domains. The current global economic

Learning Objectives: After studying this unit you should be able to:

Understand the reasons, methods, and implications of downsizing

Understand the steps in terminating an employee and the “do’s” and “don’ts” of

this process.

41

recession triggered a number of layoffs in many reputed and popular firms around the

world.

Change in Management: A change in the top brass of an organization can also result

in downsizing. The working method and procedures vary with different management

teams. Therefore, a significant change in the management may drastically affect the

employee size, to suit a particular style of working.

Merger and Acquisitions: When two or more firms combine their operations as a

single entity, in order to survive in the sector it is referred to merger. Similarly when one

large organization takes over another organization under its own name it is known as

acquisition. In such cases the huge staff cuts are made primarily to keep the organization

profitable. In case of acquisition, staff of the acquired organization bears the brunt of

downsizing.

Implications of Downsizing

Low employee morale: Downsizing has a huge cost associated with the low morale of

those employees that remain. These workers become very concerned about their own

futures and may not perform as efficiently as before, and remain unsure about which day

might be their last day at the job.

Promotion Freeze: In downsizing often layers are pulled out of an organizational

structure, making advancement in the organization more difficult. Thus more and more

individuals find themselves plateaued in the same job until they retire.

Lost Institutional Memory: The institutional memory (how the organization comes

across to the people in all their dealings) is lost. The fewer seasoned people the company

has to pass these on, the less it will be able to maintain the soul of the organization.

Lower Chances of Resurrection: Once the situation starts to improve and the

organization can seek more business, it often realizes that it has cut too deeply. It then

begins looking for ways to get the job done. Frequently the company brings back former

workers as independent consultants which costs the company significantly more than if

they had stayed on the payroll.

Methods of Downsizing

I. Natural Wastage (Attrition)

The slow, gradual reduction of members in a company or organization due to retirement,

resignation or death. That is, members lost through attrition are not replaced in the same

numbers. Attrition may be deliberate; that is, if an organization is downsizing, it may prefer to

lose employees through attrition rather than to conduct layoffs. Other times, however,

attrition may be a sign of a weak company or organization unable to attract talent. Attrition

is also called natural wastage.

II. Voluntary Redundancy

42

Voluntary redundancy (VR) is a financial incentive offered by an organization to encourage

employees to voluntarily resign, typically in downsizing or restructuring situations. The

purpose is to avoid terminations and layoffs. Voluntary redundancy is usually useful for long

serving members of the company or people close to retirement.

III. Compulsory Redundancy

Compulsory redundancy is the next stage of voluntary redundancy. In this case the employees

are selected for redundancy against their will. Where compulsory redundancies are used, a

number of selection criteria may be applied to decide who will lose their job. These include

last-in-first-out and selection on the basis of skills or qualifications, standard of work

performance or aptitude for the work, and attendance or disciplinary record.

IV. Early Retirement

Early retirement occurs when an employee decides to retire (leave work) before the age at

which he or she becomes eligible to collect retirement resources such as social security,

pension, provident fund or another retirement plan. Early retirement is also an offer made by

employers who seek to cut costs and encourage highly paid employees to leave

their employment by retiring early. Usually, the early retirement option is accompanied by

financial incentives. The employer reaches its financial targets, when the correct number of

employees needed for streamlining the organization and cutting costs, accept the early

retirement offer.

V. Redeployment

Redeployment is an appointment of an employee, who is at risk of being made redundant, to

a position which may be different in terms and conditions to the current post. The process

of redeployment involves the identification of surplus and shortage areas, notifying and

educating employees about the importance of being redeployed in high need areas, identifying

the skills and competencies required in these areas and assessing the employees who can be

successfully redeployed. The offer of suitable alternative work should have similar status,

should be within the capabilities of the employee, should not cause unreasonable in

convenience to the employee and should provide similar earning to the employee.

Exercise 5.1

I. Downsizing is carried out to:

a) Reduce the number of employees

b) To increase the growth of an organization

c) To maintain the existence of an organization

II. A significant change in the top management may result in downsizing (T/F)

III. A Last In First Out method is used during voluntary redundancy phase (T/F)

5.2. Termination

There is no pleasant way to terminate an employer/employee relationship. Many managers

never learn the right approach, but it doesn’t have to be something that is completely tortuous

43

for the supervisor or the employee. Termination has become a necessary part of business;

however, an employer should remember to legally cover all their bases, so as not to encounter

a lawsuit. A successful termination would end on a positive note, and still allow the employee

to walk out of the office, ego intact.

Ways to Terminate an Employee

Most managers hate having to do it and the impact on the employee is self-evident. Many

managers never learn the right approach. The goal is to have the employee leave the company

with ego intact, without filing a lawsuit. With that end in mind, here is a host of strategies to

follow.

Communication

There must be a dialogue with the employee right from the start. Outline your expectations

and the company’s rules. If the employee is performing poorly, you need to inform them of

specific performance issues, in a timely manner. That is called “due process.” You shouldn’t

fire an employee for poor performance if the employee has no idea that his performance is

poor. In the case of a plant closing or a major layoff, the law to follow is called the Worker

Adjustment and Retraining Notification Act. Each employee slated for termination as a result

of a mass layoff, office closing, must be informed of their impending termination 60 days in

advance.

Establish a Probationary Period

Many uncomfortable situations can be avoided if the company has a probationary period

policy. When new employees are hired for a 60- to 90-day probationary period, it is much

easier to let them go at that point if they are not working out.

Don’t Act in the Heat of the Moment

Don’t terminate an employee in the heat of the moment; you’re setting yourself up for a

lawsuit. There is also the possibility the employee might respond in an over emotional way.

A good first move would be to suspend the person with pay. Then conduct a thorough

investigation, obtain information from all parties involved and terminate the person only if the

facts support the charge of willful misconduct or violation of rules. Make sure that “the last

straw” is a solid one.

Three Legal reasons for Termination

1. The employee violated a known organization rule or rules.

The first legal reason that an employer can use to justify the termination of an employee

is if the employee violated a “known” company rule. In order for this reason to be upheld

in a court of law, the employer will need to prove that: (1) the rule actually exists; (2) the

employee knew that it existed; (3) the rule was violated; (4) other employees were

terminated for the same infraction; and (5) the termination was reasonable punishment

for the infraction.

44

2. The employee is unable to perform the job adequately.

The second legal reason to terminate an employee is if they are not able to perform their

job adequately. To be able to defend this reason for termination in a court of law the

employer must be able to prove that the employee was incompetent, that the employer

took reasonable steps to try and improve the employee’s performance, and that the

employer had addressed the issue in several instances before terminating the employee.

To prove that the employer’s position in this kind of situation they will need documented

evidence.

3. The organization is reducing is workforce for economic reasons.

The final legal reason for terminating an employee is if it is in the best economic interest

of the company in question. Layoffs are common reasons for terminations, especially in

larger corporations that are downsizing or restructuring. Here, courtesy is expected, and

employees who are involved in a large-scale layoff need to be given at least 60 days’ notice

of the layoff. (Golden hand shake).

Documentation

Documentation is your key to protecting yourself from wrongful-termination lawsuits. To

make sure that you have all of the documentation that you need, keep your personnel files

current and complete. Try to keep the following items on hand, either in every employee’s

file or in a clearly labeled personnel file:

I. Critical incident reports.

II. Employee evaluations (at least one a year; every six months, especially for new

employees for the first three years).

III. Job analysis of all jobs (Conduct job analyses at least every two or three years.).

IV. Job descriptions for every job (Update job descriptions at least every two or three

years.).

V. History of how infractions have been handled in the past.

VI. Supervisor’s employee log documenting good and bad incidents.

VII. Customer evaluations and feedback forms.

VIII. Work samples.

IX. List of rules, signed by each employee.

X. List of progressive disciplinary actions signed by each employee.

XI. Employment-at-will doctrine signed by each employee.

The Employment-at-Will Doctrine

The basis for an employer to terminate an employee without being sued is the employment-

at-will doctrine. This doctrine is a statement that is signed by both the employee and employer

at the time of hire that states that the employee can quit at any time for any reason without

notice and that the employer can terminate the employee at any time for any legal reason.

45

Employee Termination Checklist

How do you know when enough is enough? For starters, ensure the following seven questions

can all be answered with a resounding “YES.”

1. Did you give the employee advance warning of the consequences of the unacceptable

conduct?

2. Was the rule or procedure violated related to the safe and efficient running of the

business? 3. Did you conduct an in-depth investigation to determine whether the employee did, in fact,

violate the rule or procedure?

4. Did you conduct the investigation fairly and objectively?

5. Did the investigation provide substantial evidence or proof that the employee was guilty

of the offense?

6. Has the company applied a similar penalty to other associates who have committed a

similar offense in the past?

7. Is the employee’s termination fair in light of the employee’s years of service and record,

the seriousness of the offense, and has progressive discipline been used, if warranted,

based on the offense, to try and correct such unacceptable behavior in the past?

Exercise 5.2

1. You as the HR manager have been tasked with terminating the services of an employee.

List the steps that you will follow. (Please add more lines if you need to do so.)

a. __________________________________________________________________

b. __________________________________________________________________

c. __________________________________________________________________

d. __________________________________________________________________

e. __________________________________________________________________

2. The best way to terminate an employee is to:

a. There must be no prior communication or dialogue with the employee

b. There must be a dialogue between the employer and employee prior to the

termination of services.

c. An employee should always be terminated in the heat of the moment

46

Gender Considerations in HR

47

6. Gender Guidance for AFGP Grantees in HR

6.1 Introduction

Given the critical role of women and girls in development, gender is one of the key cross-

cutting themes of the USAID AFGP. Grantees are strongly encouraged to consult USAID’s

Gender Equality and Female Empowerment Policy and implement their projects accordingly.

The AFGP offers the following general guidance to grantees on how to integrate gender into

their work, and especially into the grant project, they implement with USAID AFGP funds:

Apply your organization’s knowledge, experience and capacity consistently to address

gender-related issues.

Ensure full participation of women/girls in the grant project. In some contexts, it could

be important to include men in consultations and relevant project activities in order

to get their full support for women and girls’ participation.

Understand how gender might be relevant to long-term sustainability.

Understand how project activities will affect the status of women/girls and the gender

relations in the local community.

Monitor activities to measure their impact on women/girls and on gender relations.

Gender disaggregate all data (people-level results and indicators).

6.2 Hiring, Promotion and Retention of Project Personnel

Grant applicants should aim to have gender balanced project teams, including women in

management positions. Here are a few ideas related to gender-focused hiring:

Encourage women to apply for jobs at all levels.

Include all qualified women applicants on shortlists for positions at all levels.

Appoint women members on all interview panels.

Grade written job tests anonymously (to add an objective element to the hiring

process).

Ensure equity in salaries (the same salary for the same job title).

Implement fair and equitable policies for promotion and salary raises.

Create a gender-sensitive work environment free from sexual harassment.

Implement laws against sexual harassment in letter and spirit.

Provide flexible working hours and leave benefits.

Accommodate women’s personal choices to limit work travel, whenever possible.

Provide childcare and other relevant resources, if possible.

6.3 Training / Capacity Building

Grantees should incorporate gender into all capacity building. Keep the following ideas in

mind when planning any training for staff, community members or any other stakeholders:

Integrate gender themes into every training module on every topic.

Also, develop separate training module(s) specifically on topics related to gender.

Employ female and male trainers.

Consider mixed trainings (for women and men) when that is appropriate and

beneficial. Consider separate trainings for women to ensure they have full opportunities to participate in discussions.

In all training materials (for women and men) use gender-neutral language and use

examples of women in many different contexts, including non-stereotyped roles and

professions.

48

Include female presenters and voices in video training modules.

6.4 Monitoring and Evaluation (M&E)

Gender should be incorporated into grantee M&E in the following ways:

Employ female and male M&E personnel.

Ensure that all M&E data is gender disaggregated (whenever you gather data, note

separately the number of women, men and transgender individuals).

Include women as participants in Key Informant Interviews (KIIs) and Focus Group

Discussions (FGDs). Consider organizing separate FGDs for women to ensure that

they can speak freely and participate fully.

Think about the impact that grant project activities might have on women/girls – both

positive and negative. Include this theme in project planning, baseline studies, M&E and

end-of-project studies.

Think about the impact that grant project activities might have on gender relations in

the local community – both positive and negative. Include this theme in project

planning, baseline studies, M&E and end-of-project studies.

49

Disclaimer:

This manual was made possible by the American people through the United States Agency for

International Development (USAID). The contents of this manual are the sole responsibility

of Trust for Democratic Education and Accountability (TDEA) and do not necessarily reflect

the views of USAID or the United States Government.