STAFFING

Staffing function is concerned with acquisition, development and maintenance of an efficient and satisfied work force in the organization.

It involves the recruitment training development and appraisal of personnel in the organization.

This staffing/personal management enables to contribute most effectively to the organization purpose in the performance of their duties, as well as to attain those personal and social satisfactions which they tend to naturally seek within their working environment.

Staffing is the acquisition and the maintenance of human resource necessary for the organizational success.

OBJECTIVES OF STAFFING

• To build and maintain cordial relations between people working at different level.
• To ensure effective utilization of available resources.
• To provide fair working conditions, wages and amenities to employees.
• To achieve the development of employees to their fullest potential. ➢ To help other mangers in solving their personnel problems.

 

FUNCTIONS OF THE PERSONNEL DEPARTMENT

The function of the personnel department can be divided into two:- Managerial Function

This is concerned with planning, organizing, directing and controlling the activities related to the human resources..

Operative Function

This involves:-

• Procurement/employment Development.
• Record & Research.

 

MANPOWER PLANNING

Also known as human resource planning manpower planning is the development of a comprehensive staffing strategy for meeting organizational future human resource needs. It is the process by which management determines how the organization should move from its present/current manpower position to its desired manpower position.

Through planning the management strives to have the right number and the right kind of people, at the right place and at the right time, doing things which result in both the organization and the individual receiving maximum long-term benefit.

Features of manpower planning

1. It involves forecasts of the future manpower needs so that an adequate and timely provisions may be made to meet those needs
2. The purpose of manpower planning is to determine the right number and the right type of people required for effectively accomplishing the tasks and goals of the organization
3. It helps in ensuring effective utilization of present and future manpower
4. It has two aspects i.e. quantitative and qualitative aspects
5. It result in the development and policy programmes and procedures for the acquisition, development, preservation and utilization of organizations human assets
6. It is a continuous process because the demand and supply of manpower are subject to frequent change.

 

Significance of manpower planning

1. It helps management to avoid both shortage and surpluses of manpower and thereby to control labour costs.
2. Manpower planning defines human resources required to meet the organizations objectives. By ensuring the right people at the right time, it contributes significantly to the success and growth of the enterprise.
3. It provides a sound basis for the selection and training of manpower
4. A long term and systematic manpower plan is necessary to ensure a stream of qualified personnel flowing into the organization
5. Manpower planning is important for an organization and an economy. At the firm level, it warns management of upcoming manpower shortage and surpluses. At national level, manpower planning helps to ensure optimum utilization of the country’s human resources, to maintain employment to improve productivity and to develop the human assets
6. Inventory of existing manpower helps in ascertaining the status of the available personnel and to disclose untapped talent.

Objectives of manpower planning

1. Making the best use of human resources
2. Obtaining and retaining the quantity and quality of people an organization needs
3. Being able to anticipate the future term of potential surpluses and deficit of people
4. To promote and develop of existing personnel
5. To provide control measures so that human resources are available when required

Importance of manpower planning

1. Helps in correcting staff imbalances in time, thus management can reduce labour costs of overstaffing and under utilization of talents is brought to light.
2. MPP provides a sound basis for development of personnel to make an optimum use of available talents.
3. MPP identifies gaps in existing manpower so that suitable training programmes may be developed for building specific skills required in future.
4. MPP enables the management to cope with uncertain environment.
5. MPP involves an inventory of current manpower to determine its status and therefore untapped talents available in the organization can be identified.
6. Helps management to have the right people at the right jobs at the right time.

Manpower Planning Process

Manpower planning process involves four basic steps:-

1. Assess current staffing needs. This involves assessment of the current jobs needed the organization, shortages and supplies should be identified in this step.
2. Forecasting future human resource needs. A systematic attempt to probe into the future human resource needs should be done. This should put into consideration of the organization and also technological changes.
3. formulate staffing strategy

A staffing strategy should be formulated based on the needs of the organization.

4. Implementation of the strategy

The strategy is adopted and put into use.

5. Evaluate and update

The implemented strategy is monitored evaluated and updated to ensure that the goals of the enterprise are being met.

 

JOB ANALYSIS

Job analysis refers to the process of determining the fundamental elements of a job through systematic observation and analysis. Job analysis occurs during the assessment of the organizational manpower needs.

It involves breaking up of a job into its basic elements and studying them in details to obtain all the pertinent facts about the job. e.g.

• what the worker is expected to do
• Methods and techniques used
• The working conditions
• Skills required. (Content, job duties and personal qualities)

 

Job analysis serves the following purposes.

• It provides a basis for MPP and for recruitment and selection
• Helps in matching the employee competencies and the job during selection
• Facilitates job evaluation and performance appraisal which is necessary in wage determination
• Helps in devising training and development programmes for employees. 5) Facilitates proper allocation of authority 6) It facilitates job design.

The end result of job analysis is job description

 

JOB DESCRIPTION

This is a clear summary of duties and responsibilities of a specific job.

It describes the title of the job, its location, tasks to be performed and work conditions.

JOB SPECIFICATION

This is a statement of the minimum acceptable human qualities required for the successful performance of a job.

It specifies the physical requirements, education and knowledge, work experience, aptitude (ability to learn) and personal characteristic that one should possess in order to handle the duties of a particular job effectively.

 

JOB EVALUATION/GRADING

This technique/process of establishing the relative merits of jobs within an enterprise in order to establish pay differentials

It involves the assessment of the work content of all jobs in the organization and their classification into broad categories called job grades.

 

Advantages of job evaluation

1. Helps in selecting new staff
2. Assists in transferring employees from one department to another
3. Ensures that staff doing the same job receives the same rates of pay thus avoid wage anomalities.
4. Assist in evaluating new jobs and deciding on appropriate rates of pay
5. May improve relationship between management and workers
6. Provide data needed for collective bargaining
7. May result in improved staff morale and thus low labour turn over and increased output
8. Useful for estimating budgets.

 

Disadvantages of job evaluation

1. It may place all jobs into few grades and reduce chances of promotion
2. Job grades fails to take into account individual differences in workers abilities
3. There is a tendency to view workers in terms of their grades
4. Job grades are rarely evaluated while job content change time to time.
5. Salary scales are not solely based on job grading but also other factors such as trade union influence etc

 

Question:

Describe the purpose of manpower planning in business organizations. 

 

JOB RECRUITMENT

This is the acquisition of human resources to fill up particular positions in the organization

• Thus recruitment is to seek out, to explore to evaluate, to induce and to obtain commitment from prospective employees so as to fill up positions required for the successful operation of an enterprise.
• Each organization has its own policies and procedures that guide the recruitment e.g.
• When to declare a job vacant
• When to advertise for the job
• The source of recruitment
• How to advertise etc
• Recruitment is very important because it increases the number of applicants from which a real choice can be made.

 

SOURCES OF RECRUITMENT

Sources of recruitment can be classified into two broad sources i.e.

1. Internal sources ➢ Transfers
   • Promotions
2. External sources
   • Advertisements
   • Education institutions etc

 

INTERNAL SOURCES OF RECRUITMENT

Advantages

• Increases morale in the organization especially for the person being promoted.
• It’s easier to assess employees because you know them.
• it’s a form of rewarding good performance of work
• It is less expensive as it does not involve many procedures e.g. advertising short listing.
• There is no need for initiation/orientation as the person being recruited understands the procedures & operations of the enterprise.

 

Disadvantages

• There is a danger of inbreeding in the organization
• There may be a problem of morale for those who were not promoted It may create infighting for promotions which may affect performance.
• It discourages the hiring of experts
• A strong manager development programme becomes necessary
• There may be need to retrain the employee so as to suit the new responsibilities.

 

Organizations do have policies that guide them on transfers and promotions in the organization.

For instance a good transfer policy should have the following characteristics.

• it should ensure that the transferred workers in their new positions are not given completely new kinds of jobs
• Responsibilities for recommending and approving transfers should be clearly defined.
• How a transfer is going to affect security of the employee should be spelt out clearly.
• Complete accurate job description of the jobs to which transfer are under consideration. Etc.

A good promotion policy should entail the following:-

• Promotions should be recommended by line managers and decided by their supervisors in line management.
• Likely opening for promotion should be given wide publication.
• Accurate job description should be prepared for each job.

 

External sources of Recruitment

It involves acquiring manpower from outside the organization. The sources include:- o Direct application from suitable candidates o Through management consultants o Academic institutions e.g. colleges, universities

• Employment bureaus and agencies
• Sister organizations o Government departments o Through recommendations and suggestions current employees o Unsolicited applicants.

 

Merits of External recruitment

• It’s an inexpensive way of hiring qualified professionals.
• New blood is brought into the organization thus new insight
• There is no danger of inbreeding and favourism.
• There is a wider choice as the person is selected from among a large number of applicants.

 

Demerits of external recruitment

• The person selected might not fit well in the organization
• There is a longer orientation and initiation programme.
• The person recruited may meet with resistance from the other employees
• There is a morale problem for those from within who have not chosen
• It may be time consuming and costly coz of the many procedures involved.

 

JOB ADVERTISEMENT

This is informing the public about existence of a vacancy position in an organization. It is a usually done through the mass media or in meetings. The job advert should contain the following elements;

-Details of the employing organization

-Position to be filled

-Location of the position

-Key duties and responsibilities of the position holder

-Essential requirements of the job

-The minimum personal qualifications

-Deadline of submitting applications

-To whom the application should be directed

PRINCIPLES OF EFFECTIVE JOB ADVERTISEMENT

In order to make an effective job advertisement the following principles should be observed;

• Always provide brief but sufficient information about the position to be filled.
• Give brief but sufficient information about the employing organization.
• Provide details of all the essential personal requirements.
• Outline clearly the essential requirements of the position.
• Provide the main conditions of the position especially the salary.
• State clearly where or to whom the application should be directed. ➢ The advertisement should be presented in an attractive form.

 

 JOB SELECTION

Selection is the process of offering jobs to one or more candidates from among those who applied for the job.

It involves a series of steps which screens the candidates for choosing the most suitable person for the vacant post

Benefits of selecting the right kind of people

• Proper selection and placement of personnel go along way towards building up a suitable workforce. This in turn keeps the rate of absenteeism and labour turnover low.
• Competent employees will show higher efficiency and enable the organization to achieve its objectives.
• The rate of industrial accidents will be considerably low if suitable employees are placed on various jobs.
• When people get jobs of their choice and taste they get higher job satisfaction (contended workforce)
• Saves the organization time, money and efforts of having recruit and select incase where wrong selection was made.

Factors to consider when selecting employees: –

• Physical characteristics – sound body, limb, height, weight, sight etc
• Personal characteristics – age, sex, marital status, no of children, family background etc.
• Proficiency/skills and abilities – qualification and past experience.
• Competence – potentiality of an individual for learning and becoming proficient in a job. Capacity to acquire knowledge.
• Temperament and character – emotional, moral and social qualities, loyalty etc high intelligence can never serve as a substitute for qualities such as honesty and trustworthiness
• Interest – without interest, work is colorless and monotonous. With interest work seems meaningful and worthwhile.

THE SELECTION PROCEDURE

The selection procedure usually varies from organisation to organisation and even from department to department depending on the position to be filled. The number of steps in the procedure and their sequence may also vary.

 

Selection procedure can involve the following process/steps.

1. Preliminary interview

Most organizations start with preliminary interview. They are used to eliminate the obvious/unqualified candidates.

It offers advantage both to the applicant and organization as it saves time, costs and efforts of both the applicant and the organization. Only those who are suitable are allowed to fill the application blanks.

 

2. Receiving Applications

When a vacant has been advertised or enquiries are made from suitable sources, applications are received from the candidates. This may be standard form or just ordinary application letters.

 

3. Evaluation of applications

The application blanks and letters and curriculum vitae are evaluated as per the individual qualities and the vacant job. Only questions that have job relevance should be encouraged. E.g. education, work experience and other specific job relate data.

 

4. Employment tests

Tests have become an integral part of the selection process. However certain conditions should be met of tests are to be used for employee selection they include:- • A test should be reliable – provide consistent retort

• Should be valid – measure what they are designed to measure (e.g. job performance)
• Should be objective – can be interpreted by different people in the same way
• Should be standardized

Advantages of tests

• They eliminate biasness in the selection personnel
• They can identify talents of individuals that can otherwise be overlooked.
• Reduce the cost of selection and placement as a large number of candidates can be listed at the same place same time.
• Psychological tests can measure the aptitude of candidates and predicate their success.
• Provides health basis for comparing applicants’ background.

Classification of tests

• Intelligence tests. They judge mental capacity of the applicants.
• Aptitude tests. They measure an applicant’s capacity and potential for
• development
• Proficiency tests. This measure skills already acquired by the individual.
• Personality tests. They measure the total personality of the applicant.
• Interest tests. This reveals areas that an individual shows special concern and  This will suggest what type of job may be satisfying to employee.

 

5. Interviews

Interviews are the most widely used and probably the most important way of assessing the qualification of a candidate. They are able to obtain additional information, provide information about the firm etc. Guidelines for effective interviews

• Plan for the interview (job specification & description)
• Create a good climate for the interview – friendly and open report with the applicant should be established
• Allow sufficient time for uninterrupted interviews
• Conduct a goal-oriented interview – irrelevant details should be left out.
• Avoid certain types of questions leading questions or those that may imply discrimination or embarrassing questions.
• Seek answers to all questions & check for unconsciousness.
• Record results of the interview immediately on completion.

 

Structured interviews

These are a series of job related questions with predetermined answers that are consistently applied to all the candidates for a particular post/job.

Unstructured interviews

These are a series of questions asked by interview panels and which do not follow any format.

They have the following disadvantages

• Highly susceptible to distortion and bias
• Rarely job oriented
• Infringe on individual privacy
• Highly inconsistent
• The interviewee can only ask questions or look for details/qualities he/she likes and ignore the others.

Significance of interviews in the selection process

• Since the candidate is physically present, the interviewer gets an opportunity to study various aspects of his personality.
• Mental and social make up the candidate is manifested in the interview.
• Its cheaper and effective if properly planned
• Correct judgment of the candidate can be made

 

5. Reference Checking

A referee is potentially an important source of information about candidate’s abilities and personality. Prior to final selection the prospective employer normally makes investigation on the references supplied by the applicant.

 

6. Medical Examination

Physical and medical examination helps to determine if the applicant is fit for performing the job. Contagious diseases are identified.

 

7. Placement on the job.

This involves making an employment offer. It involves assignment of duties and introduction of other staff members.

 

STAFF TRAINING AND DEVELOPMENT

Training implies the act of increasing the knowledge and skills required for efficient performance. The major purpose of development is to improve managerial behaviour and performance.

 

Staff development refers to the process of changing employee behaviour, altitudes and opinions through some type of guided experience.

 

Objectives of training

• Increase knowledge and skills of worker in doing specific jobs
• To impart new skills and techniques among the workers
• To bring about change in attitude of the worker towards fellow workers, supervisors and the organization
• To make workers handle materials, machines and equipments efficiently thus check on wastage of time and materials.
• To reduce the number of accidents by providing safety training to workers
• To prepare workers for higher challenges
• To make workers adapt to changes in the environment quickly

 

TYPES OF TRAINING

1. Internal training (on the job training)
2. External training (off the job training)

 

Internal training programmes

They include:-

1. Orientation/induction training

Is a type of training meant to adopt workers to specific job requirements? Most organizations have a formal orientation program for new employees who join the organization. Usually the new employees could be put under old or senior employees.

 

Reasons for induction training

1. It helps to build up new employees’ confidence in the organization and himself so as to become an efficient employee.
2. Helps to develop a feeling of belongingness and loyalty to the organization
3. Help to forge god relationship between newcomers and the old employees
4. Helps to give newcomers necessary information in the organization
5. Help to have a good impression of the organization

 

2. Apprenticeship

Apprentice is one of the oldest training methods. The worker is placed under a qualified senior who he/she understudies. The worker learns by observing and assisting his senior. It is common for trade jobs.

 

3. Delegation

Is a process where by the superior assigning certain responsibilities and authority to his/her subordinates. The subordinate learns through performance of the job or duties delegated.

4. Refresher training/retraining

This helps worker to learn new ways of handling things while still line their jobs. It also assists workers to refresh the knowledge and skill learned long time age. eg seminars, workshops etc

 

5. Job Rotation

In job rotation employees perform more tasks on a given schedule. The objective of job rotation is to make workers conversant with different parts of their jobs. The worker may be assigned duties in different departments on work observe different departmental head.

 

6. Membership to committees

Committees enable members to interact together, pool their experiences and ideas with an aim of solving problem. The committee members as a result to develop some problem solving skills

 

7. Creation of “Assistant to” positions

A trainee is posted to a department as an assistant. He/she acquire actual managerial experience.

 

8. Vestibule Training

It is similar to apprenticeship. The only difference is that the line managers on the job floor itself do not provide it. It is instead provided by special instructors outside/away from the job floor.

It has the following advantages: –

• Can be imported to a large number of people without affecting work at the work floor
• Relieve off the superior the responsibility of training ➢ Instructors are specialists and devotes full attention to training
• The trainees concentrate better as it’s away of self development. Disadvantages of vestibule training.
• It is imported a place away from the shop floor so that trainees do not experience the problems arising from actual work situation.
• In the case of deficient performance by a worker, the line supervisor may blame the instructors and the instructor may blame the supervisor for ineffective supervision.
• It is costly because machines and equipments for training have to bought separately.

External training programmes

They include: – 1. Training institutions

Specialized institutions offer training specific field e.g. colleges, universities, polytechnics

 

2. Lectures, Conferences and seminars

These may be used to impart knowledge and develop analytical skills

 

3. Case study

Workers evaluate and analyze a real life situation suggesting alternative solution to prevailing problems. Such analysis is used in solving problems at hand.

 

4. Brainstorming sessions

This consists of evaluating of ideas put forward by a group of people convened for that particular purpose.

It encourage creative thinking among participants.

Members look forward brainstorming session as they enable them to talk freely. Their deliberations are oriented to problem solving.

 

5. Role Play

It’s a training method under which participants assume certain role and enact them in a classroom situation. The others act as observers and critics.

It enables participants to broaden their experience by trying various approaches to a problem situation.

 

BENEFITS OF TRAINING TO THE EMPLOYER.

1. Less supervision – Adequately trained employees will need less supervision as they are self reliant in work performance.
2. Economical operations.- well trained employees will use the organizational resources prudently as there will be less wastage of materials and low rates of accidents.
3. High moral – training help to improve job satisfaction and morale of workers. Their attitude toward the organization will also change positively.
4. Uniformity – training enhances uniformity of procedures as the best method of performance can be standardized and taught to all employees.
5. High productivity – when skills of the employees are increased the performance of the employee is enhanced in term of quality and quantity.
6. Manpower development – training enables the organization to have a study supply of competent people to fulfill the organization’s human resource need.
7. Less learning period – training helps to reduce the learning time to reach acceptable level of performance

 

BENEFITS OF TRAINING TO THE INDIVIDUAL

• Training creates a feeling of confidence in the mind of the workers.
• Training enable an individual acquire new skill which are an asset for the individual
• Trainings provides opportunities for quick promotion and self development
• Trained individuals are likely to earn more
• Trained individuals handle machines safely and are less prone to accidents
• Training and develops adaptability among workers.

 

JOB DESIGN

People spend a great deal of their time on job. This is the process of deciding the content of a job in terms of its duties and responsibilities, work methods and on the relationship that should exist between the jobholder and his superiors and subordinates.

 

WAGES AND SALARY ADMINISTRATION

This section is concerned with the dues paid as compensation for work performed. Policies with regard towages and salary administration should be a vital component of the personnel policy of the organization since it will enable the organization to attract capable and competent individuals and also retain them in the organization. A good personnel compensation policy should cover the following elements

• Level of adequacy of payment
• Equity in wage payment
• Recognition of efficiency
• Incentive payment

 

Compensation may take different forms:

• These are compensations paid to workers for task performed over a short duration.
• This is labour compensation paid out once a month

 

Factors determining labour compensation

• Cost of living
• Wages parity/market rates
• Employer paying capacity
• Degree of unionization
• Performance efficiency of the employee
• Government regulation
• Availability of worker for the particular job

 

METHODS OF LABOUR COMPENSATION

1. Time Rate

This refers to fixed compensation for a particular period of time e.g. week, a day or month or even hours. This method has the advantage of:-

• Wages can be calculated easily
• Employee is assured of pay at the end of the period.
• It eliminates the need for measure performance
• Suitable for jobs that cannot be divided into smaller units.

2. Piece Rate

This refers to a fixed compensation per unit of output

This method motivates efficient workers and reduces the level of supervision in the organization  3. Commission Rate

This refers to compensation based on the % of sales made. It’s more common in insurance and travel agency businesses.

4. Bonus Rates

This refers to labour compensation whereby one work on time rate but any extra production or overtime worked, a higher rate is paid.

 

STAFF WELFARE & BENEFITS

This refers to any service or amenities provided to the employee. This includes:

• Transport services to and from work ➢ Staff housing plan
• Staff canteen/ rest places.
• Incentive tours
• Staff get-together/ parties. ➢ Credit plan e.t.c.

Staff welfare services serves to ensure that employees are as comfortable as possible at the work place.

 

 COLLECTIVE BARGAINING

It is essentially about reaching compromises in the face of conflicting interests, whereas participation, is about reaching optimum decisions on matters of common interest.

Collective bargaining is carried out by employers and trade unions.

Collective bargaining can be used to be a private process of negotiation between union and management aimed at settling disputes before they turn into conflict and industrial lobour unrest.

Negotiations here are supposed to submit disputes to mediation or arbitration. Mediation is an attempt to settle disputes through a neutral third party. The mediator may be a professional acceptable by both the union and the management.

Arbitration is the process by which a grievance or dispute is dissolved by an important third party.

Arbitration takes two types:

• Conciliators – where both the management and the union agree to call for 3^rd
• Compulsory – where the law provides for a 3^rd party to interview.

 

Types of collective bargaining relationship

One of the important factors that determine the relationship between the union and management is the attitude of management towards unions.

1. Conflict ii. Power bargaining iii. Armed truce
2. Cooperation
3. Collusion
4. Accommodation

 

          Conflict

Under this, strategic management takes totally uncompromising views attitude, the management adopts the old western movie phase the only good union is “a dead one”.       Armed truce

The management representative take the position thus the vital interest of the company and the union is poles away and will always be so.

However the management realizes that the union is not likely to disappear and so will not force a head on collision.

       Power bargaining

The management realizes also the power of the union, the management tasks is to impose its power and then use their power where possible to offset the power of the union.

       Accommodation

Accommodation involves learning to adjust to each other and attempting to minimize conflicts to conciliate.

This strategy in no way suggests that management goes out of its way to help organize labour.

       Cooperation

It involves full acceptance of the union and an active partner in a formal plan is a relatively rare occurrence in cooperation, management supports not only the right but the desirability of union participation in decision making.

 

        Collusion

This is a form of mutual service monopoly and is unconcerned with interest except under the collusion strategies where the union and management engage in industrial price fixing designed to inflate wages at the expanse of the general public.

 

The process of collective bargaining

The process of collective bargaining contains a number of stages however, over time each union and management develop slight modification that are necessary for effective bargaining to occur.

 

Preparation

Both labour and management representative spend extensive time preparing negotiation to follow. Data on wages, working conditions, management and union rights, benefits, productivity and absenteeism is gathered and analysed. Each party outline its priorities and tactics to use to get what they want. Initial demands

These are expectations of either party presented during negotiation. Continuing negotiations

Each party attempts to determine what this other party (side) values highly and to reach the best bargaining possible.

 

Bargaining impasses

Labour and management do not reach an agreement always on all issues. In such case dead lock cases may result on strikes by the union or lock out by management. Settlement and contract

After initial agreement on the issue being negotiated the two parties usually return to their constituencies to determine if what they have generally agreed on is acceptable.

The crucial stage thereafter, negotiation is ratification or getting a vote of acceptance. After ratification of the agreement then the agreement is formalized with a contract.

 

INDUSTRIAL RELATIONS

This describes the formal relationship between employers and trade unions or other groupings of employees together with the institutional arrangement which arise from these relationships.

Industrial relations attempts to bridge the gap between management goals/employers goals and the goals of the employees.

 

Objectives of industrial relations

• To safeguard interests of labour and management by securing understanding
• To avoid industrial conflicts and develop harmonious relationships
• To raise productivity
• To establish and nurse growth of industrial democracy
• To eliminate possible strikes
• To establish government control over such plants which operate at losses

 

Significance of Industrial Relations

• Smooth industrial relations help secure economic progress
• It helps establish and maintain true democracy
• Results in collective bargaining
• It helps the government in framing laws
• Results in less number of disputes in the organization
• Promote orderliness

PARTIES INVOLVED IN INDUSTRIAL RELATIONS

In industrial relations three parties are involved,. The workers represented by trade unions, the employers represented by employee associations or management and the government as the arbitrator.

The agreement reached by the three parties is usually referred to as a triplet agreement.

Employers Associations

They represent the interests of the employers e.g. Association of Kenya Manufacturers,

Federation of Kenya Employers (KFE)

Function Employers Associations

• Represent employers in collective bargaining
• Develop machinery for avoiding industrial disputes
• They provide information and advice on employee’s affairs.
• Represents employers on national issues.

Trade Unions

This refers to an association of workers whose major aim is to protect and promote the interests of members, through collective bargaining with the management/employers and sometimes in presence of the government.

Functions of trade unions

• They demand for higher wages for their members
• They demand for better working conditions for members
• Protect members against unfair dismissal and victimization
• They educate the workers on their rights
• They serve the interaction function with other trade unions in the field which improves their bargaining power
• Serves the political function i.e. can be used as stepping stone to ones political ambitions.

 

Types of Trade Unions

• Company unions – comprises employees of only one organization
• Craft unions – covers workers with a particular skill irrespective of the organization.
• Professional unions – caters for people in the same profession e.g.

doctors./teacher, lawyers etc

• General union – cater for workers from various fields occupations and organizations e.g. C.O.T.U.

 

Factors that have slowed down union growth

• Political dominance and influence
• Existence of about surplus
• Lack of sufficient funds to run union offices incase of strike
• Multiplicity of trade reduces their bargaining power.
• Legal restriction which makes it difficult to organize strikes
• Hostile attitude of the employers whereby they don’t want to hear anything about trade unions
• Lack of good organization due to poor leadership Poor policies inherited from colonial government
• Lack of awareness on the part of the employee.

 

ACHIEVEMENTS OF TRADE UNION

• They have fought for revision of minimum wages and better working conditions.
• They have successfully challenged management power to dismiss employees They have provided to their members security and protection from management.
• Have been able to train their workers on labour

 

Union Membership

1. Closed shop – it arrangement whereby organization only employ workers afflicted to unions.
2. Union shop – is whereby a compromise is made between the unions and employer in the employer can hire can hire anyone whether union member or not provided he/she joins the union at a particular time
3. Preferential union shop- here an agreement is made between the worker union and employer first to hire union members before considering other job applicant. Incase of layoff, members are laid of last.

Advantages of trade unions

1. They help to negotiate with the management instead of the whole labour force on behalf of the workers.
2. The play a vital role in determining wages of the workers.
3. They help employees to have job satisfaction.
4. They help to maintain uniform wages throughout the industry.
5. They have a professional approach in handling disputes between workers and management.
6. They are of help to management because they help in avoiding unnecessary disruption of workers and settle disputes.

 

Disadvantages of trade unions.

1. Some unions have been too powerful for the members thus they are specialized to huge salaries which their employers may not be able to offer.
2. The union uses workers in order to achieve some selfish goals and this results in some optimal operations.
3. The unions have known to cause workers to support their opinions and therefore call for strikes not for the workers grieves but because of the policy of the union.
4. The union tend to encourage inefficiency especially when they negotiate for higher wages and other benefits in comparison to the input of the workers.

 

CENTRAL ORGANISATION OF TRADE UNIONS (COTU)

It was established in 1966 as a result of the ministerial committee set up to communicate/ investigate the activities of trade unions. It was also as a result of the strike in the year 1963 by the Kenya distributing workers union.

COTU is headed by a secretary general.

 

OBJECTIVES OF COTU

1. To improve economic and social conditions of all the workers in all parts of Kenya and to render to the assistant whether or not such members are employed or all ceased to be employed.
2. Assist in the complete organization of workers in all Trade unions movements in Kenya.
3. Organize the structure and spheres of influence among nations of trade unions officiated with COTU.
4. Assist in settling disputes between members of the trade unions and the employers or between the trade unions and their or between two or more trade unions.

FUNCTIONS OF INDUSTRIAL COURTS

 

• Promotion of harmonious industrial relations in the country.
• To ensure compliance with labour laws, international labour standards and codes of practice as well as review of labour standards and domestication of international conventions and recommendations.
• Promotion of best practices of occupational safety and health in all workplaces.
• To plan, development and promotion of effective utilization of human resources.
• Judicial determination of trade disputes and judicial and registration of collective bargaining agreements (CBAs)
• Facilitation of the development of micro and small enterprises.
• Provision of labour market information.
• To ensure availability of skilled manpower for the industry.
• Promotion of productivity improvement.-Provision of social security through National Social Security Fund (NSSF)

 

PERSONNEL RECORDS

 

The personnel department keeps records which are necessary to help the top management in the formulation of appropriate personnel policies and procedures. The records need to be:

• Accurate
• Relevant
• Comprehensive
• Simple
• Accessible

The data collected by the department helps in finding solutions for personnel problems such as absenteeism, labour turn over etc.

Information provided include: –

 

• Personal data
• Position and experience
• Salary scale
• Medical background
• Record of absenteeism
• disciplinary letters
• Promotion letters
• Labour turnover
• Industrial accidents
• industrial disputes
• Wages

Usually individuals have individual files in which information that relates to a particular person is kept.

 

USES OF PERSONNEL RECORDS

• It helps in promotion and transfer of employees
• Its necessary for salary and other computation of other benefits
• Indicates when individuals leave is due
• Help in formulating inventive plans and other strategies to correct personnel problems
• Serves as evidence and references in court of law
• Serves as reference when handling staff disputes especially in collective bargaining
• It is a legal requirement that organization keep records.

 

LABOUR TURNOVER

This refers to the number of employees that leave the organization within a specified period. It’s expressed as a percentage  For example.  No of leaver x 100

No of employees

CAUSES OF LABOUR TURNOVER

Causes can be internal or external

 

Internal causes of labour turnover. e.g.

• Low wages
• Unsuitable work or working conditions
• Inability to perform
• Breach of discipline

External causes of labour turnover. e.g.

• Lack of transport
• Retirement age
• Natural attrition
• Health reasons

 

EVALUATION

1. Explain the benefits of recruiting the right people in an organization ii. Outline the principles of job advertisement. iii. Describe the selection procedure.
2. Explain the Reasons why organizations conduct induction training
3. Outline reasons why trade unions in developing countries have not been successful.

 

     TOPIC:           DIRECTING

                     

Specific Objectives

                        By the end of this sub-module unit, the trainee should be able to:

1. explain the meaning of leading/directing function
2. describe the various leadership styles
3. explain various motivation theories
4. explain the importance of coordination in management
5. explain the importance of communication and supervision in management

.

DIRECTING

Directing literary implies moving into action. When any administrative decision is taken, it must be converted into action by proper implementation otherwise it is of use.

 

DEFINITION OF DIRECTING

It is the function of management that involves instructing, guiding and inspiring human factor in the organization to achieve organizational goals.

It covers the following elements

• Communication/ supervision
• Leadership
• Motivation
• Coordination

 

PROCESS OF DIRECTION

The process of directing should include the following steps:

1. Determine what is to be done.
2. Issue specific orders and precise instructions.
3. Provide guidance and supervisions.
4. Motivate the subordinates.
5. Maintain constant communication with subordinates.
6. Maintain discipline and reward those who perform efficiently.
7. Provide effective leadership to the subordinates so that they work with zeal.

 

PRINCIPLES OF DIRECTING

1. Effective leadership-focused and supportive.
2. Direct supervision – personal contact with subordinate.
3. Unity of command-an employee should receive directions from only one superior.
4. Harmony of objectives – between individuals & group objectives.
5. Strategic use of informal organization.
6. Principle of follow through.
7. Managerial communication – two-way communication.

 

MOTIVATION

This is an act of stimulating someone or oneself to get a desired course of action. It is that inner state of mind that channels workers behavior and energy towards the attainment of desired goals.

 

Factors Affecting or Determining Motivation

• The Nature of the job: – A job that is challenging and good enough will motivate an individual and use versa.
• The Work environment: – When the work environment is conducive, worker will be motivated e.g. a spacious office will motivate an employee.
• Participation in planning: – When employees are given an opportunity to participate in planning & implementation the highly motivated.
• Better reward system: – When the employees are well compensated they become more motivated.
• Security: – When employees are provided with security at work and have security of tenure, they are highly motivated.
• Recognition by management: – When the management recognizes the efforts of the workers, they will be highly motivated.
• Trust and loyalty: – When there is trust and loyally between the subordinates & the management motivation becomes high in the organization.
• Room for advancement. : – career growth and development.
• Delegation of authority: – transfer of authority from upper to lower level. ➢ Good management practices.

 

Importance of Motivation

• Through motivation high performance in the organization can be realized.
• Motivation enhances willingness of people to work thus minimizes conflicts and resistance to change.
• Sound motivation minimizes chances of absenteeism and labour turnover.
• Increases motivation reduces the need of close supervision which may be expensive to the organization
• Effective motivation leads to cordial relationship between workers and management, as there is increased job satisfaction.
• Good motivation may lead to improvement of skills of individuals within the organization.

 

Methods of Motivating employees

 

A motive is a need or driving force within a person. The management can motivate their employees through:

• Fair remuneration – Fair & reasonable reward for the services rendered.
• Incentives – Bonuses, pension scheme & profit sharing opportunities. ➢ Security of tenure – Assure continues employment
• Good working conditions- working hours, medical, etc.
• Recognition
• Participation- In decision making
• Communication – Adequate upward & downward
• Safety programmes – Compensation / hospital expenses ➢ Health programmes – protection against health hazards ➢ Education & development programmes.

 

Features of a Sound Motivation Programmes

• It should be productive – Must result into positive increase of productivity of labour.
• Must be competitive – The costs of the motivation system /programme must be justified in its benefits.
• Should be comprehensive. It should provide for both physiological and psychological need and cover all employees at all levels.
• Should be flexible – It should be capable of being adjusted easily in case of changes in the environment and knowledge.
• It should be acceptable to the employees.
• It’s a psychological concept i.e. its concerned with intrinsic forces operating within an individual which compels him to act in a particular way. A motive is a personal and individual feeling.
• It is dynamic and continuous process i.e. it deals with human beings which are error changing and modifying themselves every moment with their needs being unlimited.
• Motivation is a complex and difficult function. In order to motivate people a manager needs to understand and satisfy a multiplicity of human needs, but needs are mental feelings which cannot be described and measured accurately. They are vague and have to be deduced from external behavior of needs. Moreover needs are basically subjective.
• It is a circular process- feeling of unsatisfied needs causes tension and an individual takes action to reduce these tension.

When the needs are satisfied, tension is removed and the person feels inspired to work in a particular direction. This in turn leads to revaluation of the situation and thebirth of the new ideas or needs.

• Motivation is different from satisfaction- motivation is the process of stimulating an individual or a group to take a desired action. Satisfaction implies contentment arising from the satisfaction of the need. Motivation is the drive towards an outcome whereas satisfaction refers to the outcome experienced by person.

 

MOTIVATION PROCESS

A person feels motivated when the available incentive lead to satisfaction of his needs.

The following are steps in motivation process

1. Awareness of needs

When a person realizes a need or motive that is not satisfied, it creates tension in his minds. Thus motivation process starts with awareness of a need. 2. Search for action

The person looks for suitable action to relieve his tension and satisfy his needs.

He thus develops certain goals and attempt to fulfill them.

3. Fulfillment of needs

The suitable action is undertaken and therefore the need is satisfied or fulfilled.

4. New need arises.

Once the need has been satisfied, another need begins to dominate the mind.

 

THEORIES OF MOTIVATION

Motivation theories are divided into three main categories:- 1) Content theory

2) Process theory

 

Content theory

These theories attempt to explain the specific things that actually motivate an individual at work. They are concerned mainly with identifying people’s needs, their relative strength and the goal people pursue in order to satisfy their needs. These theories include: –

1) Abraham Man slow’s hierarchy of needs. 2) Harzbergs two factor theory.

• Alderfers modified need hierarchy ERG (Existence need, Related need and Growth need)
• Mc Cleland achievement motivation

 

Process Theories

These theories concern themselves with identification of dynamic variables that makes up motivation. Mainly process theories focus on how behavior is initiated, directed and sustained. These theories include:-

• Expectancy based model of Vroom .
• Lawler’s and Porter equity theory.

 

CONTENT THEORIES

 

ABRAHAM MASLOW NEED HERARCHY OF NEEDS THEORY

Maslow developed a theory of motivation on the basis of human needs. The main arguments of Maslow’s theory are:

1. Man is a perpetually wanting animal and his needs are never fully satisfied. The moment a need is satisfied another one starts to dominate the minds of an individual.
2. Human needs differ in importance and therefore can be arranged in a hierarchy.
3. An individual need in the hierarchy emerge only when the lower level needs are reasonably well satisfied.
4. Satisfied needs to not motivate behaviour.
5. Lower order needs are more fifth then higher level needs

Maslow’s studies into human motivation led him to propose a theory of needs based on a hierarchical model with basic needs at the bottom and higher needs at the top.

These needs are as follows:-

 

1. Psychological needs

These are the needs for food, drink, water, sleep, clothing and shelter. These are for the survival of human life. They are the most basic fundamental needs and must be satisfied by all other needs.

A man live by bread alone where there is bread, personal satisfaction of these needs is essential for the presentation and efficient operation of human body.

An organization can help individuals satisfy their needs by providing good pay, proper working conditions and other benefits.

 

Characteristics of physiological needs

• They are relatively independent of each other.
• They can be indentified with specific location of the body.
• To remain satisfied, they must be met repeatedly within a short time.
• Unless these needs are satisfied to the degree necessary to sustain life other needs will not motivate people.

2. Safety /security needs

This is the need for stale environment relatively free from accident, fire, murder, threats e.t.c. it also touches an aspects of economic security, unemployment, theft, sickness and disability. An organization can influence safety needs either positively by providing (job security, pension plans, insurance plans, safety and healthy working conditions).or negatively by growing fear of being fired or laid off through management action.

 

3. Love needs/ social needs

Man is a social being; therefore he has the needs of belonging and be accepted by others. Social needs includes need for love and affection, association and acceptance by various social groups an organization can help achieve social needs through group decision making, team building activities, engagement in corporate social responsibility and sporting activities.

 

4. Esteem needs

These are needs for self fulfillment, self confidence, feeling of personal worth and independence, esteem for others i.e. recognition, status, power, prestige achievement e.t.c.

An organization can help to satisfy such needs through job titles, praises, promotion, performance appraisal, provision of spacious offices and prestigious packages given to employees.

 

5. Self-actualization needs

These needs according to maslow emerge after all other needs have been satisfied. Self actualization need needs include the realization of one’s potentialities, self fulfillment, self development andf creativeness. This refers to the needs for becoming what one is capable of becoming and for accomplishing more and more.

The form these needs take varies from person to person just as human personalities vary.

Self actualization can be satisfied through any of these ways, athletics, politics, academics, family, religion, hobbies or business.

 

The most and central point of Maslow’s theory is that people tent to satisfy their needs systematically starting with the basic physiological needs & then moving up the hierarchy until a particular group of needs is satisfied, a persons behavior will be dominated by them. Thus a hungry person is not going to be motivated by consideration of safety or affection, until after his hunger as been satisfied.

Maslow’s later modified this argument by stating that there was an exception to the rule in respect of self actualization need. For this group of needs, it seems that satisfaction of need gives rise to further needs for realizing one’s potential.

 

MC GREGOR’S THEORY X AND Y

Mc Gregor has classified the basic assumptions about human nature into two parts.

 

Theory X and theory Y.

 

THEORY X

This is based on the assumption that people don’t want to work and are forced to work. It assumes that:

1. The average human being has an inherent dislike of work and will avoid it if he can (lazy)
2. He lacks ambition, dislike responsibilities and prefers to be led-incapable of directing his own behaviour & is not interested in achievement (lack creativity)
3. People are inherently self-centered and are indifferently to organizational needs.
4. People are naturally/ by nature resistant to change thus have a conservative nature.
5. People are not by nature very bright and are prove to be influenced by others.
6. Motivation only occurs at physiological and safety levels.

 

THEORY Y

Under this theory people love work and enjoy it .The theory assumes:

1. Work is as natural as play or rest provided the conditions are favorable.
2. The average human being love work provided it’s meaningful and can be a source of satisfaction.
3. Commitment to objectives of an organization is a result of the rewards associated with the achievements.
4. The average human being is dynamic and adopts to change when is brought in a logical manner.
5. The average human being love responsibility.
6. People are creative and self-directed.

 

Management under theory X

• They should be directly supervised and controlled
• They should receive specific instructions, written where possible
• They should be given deadlines
• There should be close communication between the management and employees
• They should not participate in decision making at any level.

Management under theory Y

• People should be involved in decision making
• Delegate work to them
• They do not need to be coerced.
• No close supervision is needed
• Recognize their contribution and reward them appropriately

HERZBERRG’S TWO-FACTOR THEORY

(Motivation hygiene theory)

Hertzberg collected data on job attitudes through interviewing engineers and accountants. He concluded that there are two categories of needs that are independent of each other and affect behaviour in different ways.

 

When people feel dissatisfied with their job they were concerned by the environment in which they job, this had to do with the job itself. 1. Hygiene / dissatisfiers

They tent to being job dissatisfaction. Their removal or making them favourable does not motivate work or improve production but only reduce dissatisfaction.

They include:

• Supervision
• Administrative polices
• Working conditions
• Interpersonal relationships with supervisors
• Job security Status
• Money /Salary

 

2. Motivation/Satisfies

These are factors, which improve on motivation of individuals. They build strong motivation. There absence does not cause dissatisfaction but bring about a condition of not satisfied. They include: –

• Recognition for accomplishment
• Feeling of achievement
• Promotion
• Challenging work
• Increased Responsibility
• Opportunity for growth

 

Motivators are job centered, inherent to the job while hygienes are extrinsic. The theory highlights that the most effective technique of intrinsic motivation in job enrichment.  The theory also points out that the opposite of job satisfaction is not job dissatisfaction but no job satisfaction. Likewise the opposite of job dissatisfaction is not job satisfaction but job dissatisfaction.

 

ALDERFERS MODIFIED NEED HIERARCHY (ERG,Exsistenceneed, Related need, and Growth need.)

Alderfers condenses Maslow’s five levels of  needs into three levels based on the core needs of existence, relatedness, and growth.

 

Existence needs are concerned with sustaining human existence and survival and cover Maslow’s physiological and safety needs. They include all the various forms of material desires such as food, water, pay and good working conditions.

 

Relatedness needs are concerned with relationships to the social environment and cover love, belonging, affiliation, and meaningful interpersonal relationships of a safety or esteem nature.

 

Growth needs are concerned with the development of potential and cover esteem and self actualization.

 

MC CLELLAND ACHIEVEMENT MOTIVATION

He said that human beings have three basic needs (motivational) power, affiliation and achievement.

Power is shown in strong desire to alter the course of events.

 

Affiliation is need for friendship, love, and group approval.

 

Achievement is shown by desire to succeed not to fail.

He found out that scientists, business men and professionals have above average desire for achievement motivation. He suggested that a person with high achievement motivation possesses certain characteristics.

 

• He prefers tasks in which he can take personal responsibility for the outcome.
• He sets moderate goals and takes calculated risks.
• Wants precise feedback concerning his successes or failures.

 

PROCESS THEORIES

EXPECTANCY THEORY 

   V room models

Victor H Vroom holds that people will be motivated to do things to reach a goal if they believe in the worth of that goal and if they see that what they do will help them in achieving it.

Vroom theory is that people motivation towards doing anything will be determined by the value they place on the out come of their effort (whether positive or negative) multiplied by the confidence they have that their effort will materially aid in achieving a goal.

In other words Vroom make the point that motivation is the product of anticipated worth that an individual place on a goal and the chance that he or she sees of achieving that goal.

.

 Porter and Lawler model

Their model is based on assumption that rewards cause satisfaction and that sometimes performance produce rewards.

They made the hypothesis that satisfaction and performance are linked by rewards. They see good performance leading to rewards which are either be intrinsic or extrinsic. Intrinsic rewards are given to the individual by himself for good performance and they include: – feeling of accomplishment and satisfaction of higher level needs.

Extrinsic rewards are given by the organization and they include pay, promotion, job security, good working condition etc.

 

MOTIVATING FACTORS

1. Participation in planning

When employees are given a choice to plan their own work and contribute in organizational planning, the plans, are more acceptable to them.

2. Challenging work

When work is not challenging, boredom sets in and this is likely to cause laziness and dissatisfactions at the place of work

 3. Recognition of status

Most people want approval by peers, friends or supervisors. Benefits that show status may increase motivation.

4. Authority, responsibility and power

Some people are motivated greatly by being responsible for the work of others. Many people stay in the organization with the hope of rising to upper levels

5. Independence to action

Being allowed to work without close supervision motivates a person.

6. Security

This includes financial and non financial incentives that are given to the employee will be motivating 7. Advacement 

People are motivated by upward mobility in their job

8. Personal growth

People want to grow wholesomely both in aspects related to the job of those outside the job

 

MORALE

This is a term used to describe the overall climate prevailing among workers. Its an attitude of a satisfaction with desire to continue in willingness to strive for goals for a particular enterprise. Lack of morale can result in:-

• Increased cases of Absenteeism
• Antagonism towards rules and supervision
• Excessive complains & grievances
• High labour turnover
• Friction between employees and the management or the employer
• Lateness at work
• Increased accidents at work
• Alcoholism as a result of frustration

 

LEADERSHIP

According to Chester Barnard, leadership is the ability of a supervisor or manager to influence the behavior of his subordinates and persuade them to follow a particular course of action.

 

IMPORTANCE OF LEADERSHIP

1. Efficient leadership motivates the members of staff.
2. Efficient leadership helps in directly group activities.
3. Leadership helps to reduce resistance and conflicts in the organization.
4. Good leadership assists in bringing change and increase interpersonal communication.
5. Leadership ensures cohesiveness among group members.
6. Leadership helps to develop talents of individuals.
7. Good leadership enables optimal utilization of the organizational personnel.

 

THREORIES OF LEADERSHIP

1. Trait theory

According to this theory leadership behaviour is the sum total of the traits that an individual posses. A successful leader must therefore posses certain tracts or qualities.

These qualities include:- • Intelligence.

• Initiative and creativity.
• Open mind
• Self confidence
• Vision and foresight
• Maturity
• Sense of responsibility
• Physical fitness

 

2. Situational theory

According to this theory, leadership is a function of the situation in which the leader works & emerges. It argues that a leader may be successful in one situation and fail in another.

3. Behavioural theory

According to this theory, leadership is a function of effective role behaviour. A leader should posses’ favourable leader behaviour to inspire and guide subordinates.

 

LEADERSHIP STYLES

 

1. Autocratic / Authoritarian Leadership

This is whereby power is highly centralized. The subordinates are not allowed to make or participate in decision-making.

An acrobatic leader demands complete loyally and unquestionable obedience from the subordinates.

Advantages of Autocratic Leadership ➢ Tasks are accomplished on time.

• Decision-making is not delayed.
• Communication is fast

Disadvantages of Autocratic Leadership

• There is social distance between the leader & the being led.
• May lead to high labour turnover because of job insecurity.
• Members lack commitment to organization goals.
• The work may not be effectively done in the obscene of the leader.
• Workers initiative is suppressed.

 

2.             Democratic /Participative Leadership

This is a subordinate centered leadership whereby the leader involves the total participation of the subordinates in decision-making process. He leads by consent of the group rather than by use of authority.

Advantages of Democratic Leadership

• Effective consultation between the leader & subordinates.
• Effective delegation since then is trust confidence between sub & the leader.
• There is openness & Friendliness.
• High motivation within workers leading to cooperation.
• High productivity & quality of work.
• New ideas & change are welcome.
• Open communication.

Disadvantages of Democratic Leadership

• Decision-making is time consuming since a lot of consultation is required.
• The job may not be perfectly done, as the leader may not be able to oversee directly.
• Concept may develop due to familiarity.
• Some workers may take advantage of the freedom and trust given to them.
• May allow for even unfair critism by the workers
• Over delegation may lower the quality of work

 

3. Pseudo Democratic or Manipulative Leadership

 

This leader makes his desires known & then appoints a committee to deliberate but primarily to approve his proposal.

Group members go through the nation of cooperative action but to no avail since the decisions have been reached before hard.

The leader may be very successfully being tolerated when he rewards those who support him.

 

4. Bureaucratic Leadership

 

The leader depends upon the rules and regulations developed by him. The rules specify the functions and duties of every member of the organization. The leaderships therefore reduced to a routine job. There is limited scope pr initiative and subordinates like to play. The leader is centered leading to total inefficiency.

 

5. Laissez faire/ free rein Leadership.

 

Under this type of leadership, the leader leaves it to subordinates to decide and controls themselves believing that they are competent and motivated. He does not lead and avoids using power.

He leaves the group to itself. He rarely acts or takes a consultancy position of the group without any influence of authority.

He does not interfere in the activities of his subordinates. He believes that people will perform better if they are left free to make and enforce their own decisions. Such a leader may be successful where the subordinates are highly competent and fully dedicated to the organization.

 

6. Charismatic Leadership

 

This is where the leader has total loyalty and support of the subordinates. It may be as a result of special qualities that he/ she posses and as such the followers strongly believe in his/her ideas. A Charismatic leader posses natural, inborn unique traits and attributes that distinguishes him/her from other leaders. He may be kind, forceful, persevering, sincere, humble, etc.

 

LEADERSHIP STYLE ACCORDING TO LICKERT

Likert has classified leadership styles into four types. They include:

1. Exploitative / Authoritative

This is a system that is highly autocratic. It has very little trust in subordinates. People are motivated through fear and punishment with occasional rewards. Communication is downward and decision-making is limited to the top.

 

2. Benevolent Authoritative

The manager has patronized confidence in the subordinates and motivates with some rewards some fear and punishment. The manager permits some upward communication and solicits some ideas and opinions and also allows some delegation of decision making but with close policy control.

 

3. Consultative Leadership

The manager has substantial but not complete trust and confidence in subordinates. He tries to use subordinates ideas and opinions and he use rewards for motivation with occasional punishment. Upward & downward communication is allowed and the general policy is made at the top, but specific decisions are made at lower levels.

4. Participative Leadership

The leaders have complete trust and confidence in subordinates. He gets ideas and opinions from the subordinates. Rewards are given on the basis of group participation. Subordinates engage in communication and also in decision making throughout the organization.

 

Factors affecting effectiveness of leadership/ choice of leadership style:

 

1. Factors related to the manager

• Self knowledge and experience
• Managers personality
• Academic and professional background
• Personal capacity
• Managers values
• Managers goals and aspirations

2. Factors related to subordinates

• Attitude towards authority
• Their work ethics
• Maturity level of subordinates i.e. task related maturity and not age
• Employment value system
• Workers experience and skill level
• Employees academic and professional background
• Employees expectations
• Employees need for independence
• Employees loyalty to the organization

3. Factors related to the situation

• Size of work groups
• Task structure
• Objective of the organization
• Leadership styles of the managers/ suppliers
• Leader subordinate relationship
• Whether or not the company has a trade union
• Impact of technology

 

COMMUNICATION.

Communication is commonly defined as the process by which a person (sender) transmits information (message) to another (receiver).it’s the transfer of information, ideas, understanding or feelings between people.

An organization must keep in touch with its environment e.g. customers, suppliers the government dealers etc.

The purpose of communication in an enterprise is to effect change i.e. to influence action towards the welfare of an enterprise. Communication is essential for the internal function of the enterprise, because it integrate the managerial functions.

 

Communication is especially need to:-

• Establish and disseminate the goal of an enterprise.
• Develop plans for achievement of an organization goal.
• Organize human and other resource in the most effective and efficient way.
• Select, develop and apprise members of the organization.
• Lead, direct, motivate and create a climate in which people want to contribute. 6) Control performance.

 

Communication process

The process traces the movement of information from the sender to the receiver. The process has the following elements of steps:-

• Sender – This is anyone who wants to communicate something to someone else. The sender has a thought or an idea which must be put into a language understood by the receiver and the sender (encoding).
• Message – This is the information the sender wants to communicate.
• Channel / media– This is the link between the sender and the receiver of the message. It refers to the model of transmission of the message e.g. a letter, telephone, television, a computer, gestures etc
• Receiver – This is the person the sender wants to react with the message. Once the receiver gets the message he/ she must decode it. This is the process by which the message and attaches meaning to it.
• Feedback –The action taken by the message receiver once the message has been conveyed. Its only trough feedback that the sender can know the process was successful

Communication process is represented diagrammatically as follows

NOISE HINDERING COMMUNICATION

Unfortunately communication is affected by noise which is anything / whether in the sender, the transmission that hinders communication, for example:-

• A noise or a confined environment may hinder the development of a clear thought.
• Encoding may be faulty because of the use of ambiguous symbols.
• Transmission may be interrupted by static in the channel, such as may be experienced in poor telephone connection.
• Inaccurate reception may be caused by in attention.
• Decoding may be faulty because the wrong meaning may be attached to the words and other symbols.

The process of communication is affected by many situational and organizational factors. Factors in the external environment may be; Educational, sociological factors, legal factors, political factors, economic factors etc.

 

Communication is also affected by internal factors such as structure of the organization, managerial styles changes in technology etc.

 

TYPES OF COMMUNICATION

Communication in an organization is either internal or external. In an effective organization, communication flows in various directions i.e. down word, up word or crosswise. This various types of communication in an organization may include:- 1)  Types of communication according to flow of direction 

1. Vertical up word communication

 

In this type of communication, the information flows from the lower levels

(subordinates) to the higher levels (superiors) trough the chain of command.

2. Vertical down words communication

In type of communication, information flows from the higher levels (superiors) to the lower level (subordinates). This type of communication exist especially in organization with an authoritarian atmosphere

3. Direct horizontal communication

This involves an individual from one department communicating to another person in another department at the same level

4. Indirect communication

This communication occurs between people of different organizational levels of different department

 

2) Type of communication on the basis of relationship between the parties in the organization  a) Formal communication

This type of communication follows the course laid down in the organization structure of the enterprises. Members of the enterprise are supposed to communicate with each other strictly as per channels laid down in the structure.

 

b) Information communication

In this type of communication the transmission of information is not through any structure or any pattern of relationship provided in the organization. This type of communication is through the grapevine where there is no approval of the management.

 

Types of communication on the basis of the method used a) Written communication

This is the form of a letter, memos, manuals, or minutes. In a formal organization such as a business enterprise, written communication is the most important media for conveying ideas, information etc.

 

b) Oral/ verbal communication

This provides immediate feedback and unclear issues can be clarified immediately. It gives communication a personal and intimate touch. Verbal communication can be in the following forms:- • Face to face contact.

• Joint consultations.
• Public communication which may be used to announce a policy decision of workers.
• Broadcasts which relates to statement from the management to the staff generally or to certain section of it also relates to public announcement and communication address to shareholders.

 

c) Non verbal communication

In this form of communication, gestures rather than words are used to convey feeling of emotions. Facial expressions, postures, gestures, tone of voice and other body movements are made

 

BARRIERS AND BREACK DOWNS IN COMMUNICATION

The communication problems or barriers whether arising from mechanical, organizational or personal factors, may often result in distortion of meanings or filtering of information by suppression or with holding.

Broadly, the distortion or filtering of information may be due to the following:-

1. i) Mechanical barriers ii) Organizational barriers

iii) Personal barriers

 

i) Mechanical barriers      Causes

1. Distortion- It may be due to noise in the transmission or because the communicator does not use the right words to give meaning and precision to his ideas and interpretations.
2. Filtering – It is caused due to a distance between the communicator and the receiver. As a message passed through different points in the communication channels, it may be attached or twisted by the persons in between whether intentionally or unintentionally.
3. Overloading– It is caused by over working of the communication channels due to an increase in the number of messages to be cleared.

 

ii)  Organizational barriers

They may be caused by inadequate or improper arrangements for various intraorganizational communication activities.

                 Causes

1. Inadequate of facilities that pertains to meetings, conference and other mechanisms for hearing and sorting out suggestions as well as complaints.
2. Inadequate policies, rules and procedures in an organization. Thus rigidity in communication procedures and rules should be avoided.
3. Status pattern – problems in communication arise from relative position of the superior subordinates in the organization.

 

iii) Personal barriers

Sometimes the failure in communication is due to personal problems of the person to whom the communication is being addressed or the person who is giving out the information.

                 Causes

1. Lack of attention or interest
2. Hasty conclusion i.e. the receiver may be by nature a person in hurry such that without going through the message carefully, he may jump to hasty conclusion according to his own opinion or believe.
3. Lack of confidence in the communication.
4. Improper state of mind i.e. emotional mentally upset.
5. Love for the status quo i.e. if the communication tends to disturb the existing scheme of things, or is otherwise seen to be against the interest of the receiver, it may create misunderstanding and resistance.

 

ESSENTIALS OF A SOUND COMMUNICATION SYSTEM (PRINCIPLES OF

EFFECTIVE COMMUNICATION / WAYS OF OVERCOMING BARRIERS

Effective communication is the responsibility of all people. In the organization managers as well as subordinates who work towards a common aim. Whether communication is effective can be evaluated by the intended results.

 

A good system of communication must fulfill the following requirements. 

• Senders of the message must clarify in their minds what they want to communicate. This means that one of the first steps of communication is clarifying the purpose of the message and making a plan to achieve the intended end.
• Effective communication requires that encoding and decoding be done with symbols that are familiar to the sender and receiver of the message.
• The information must be send off at the proper time and should reach the receiver when he or she requires.
• All the messages and information should be formed and transmitted to support the integrity of the organization. The communication system should reflect the objective and policies of the organization.
• Participation: – The receiver must be involved in the planning and transmission of the information, such participation helps to promote mutual trust and confidence.
• The management should use informal communication to supplement and strengthen formal channels. The grapevine can be used to transmit information not considered appropriate for formal communication.
• A good communication system must contain feedback mechanism where the sender should try to know the reaction of the receiver. This will enable the management to certain whether or not the messages was properly understood and acted upon by the subordinate.
• Economy: – The communication system should be cost effective. The cost of communication should be controlled by avoiding unwanted messages and communication overload.
• Flexibility: – The system of communication must be flexible enough so that it can be adjusted to the changing requirements of the organization.
• Attention:- The receiver of the communication must be attentive and have an opened 

CONFLICT MANAGEMENT

Conflict is the struggle against status and power in which the aims of the parties conflicting are not only to gain the desired values but also to neutralize, injure or eliminate their rivals. Competition is where two parties are purely involved in a win and lose button. Competition may arise where both parties aim at achieving the same goal.

Causes of management conflict

1. Breakdown in communication
2. Change in organizational culture
3. Alienating nature of the job and work environment
4. Personality traits-some characters whether senior or junior are highly aggressive.

They cause trouble anywhere which results in conflict

1. Conflict of economic interests- joint interests of the organization. E.g. profits for both workers and management since for the works its reward for the efforts and if paid, it’s a cost to the management
2. Status and power within the organization- people will look themselves into whatever status they think they belong. Workers say that they work with their hands while the management works with their heads

 

How to solve the conflict

Strategies for resolving conflicts can be grouped according to the likely outcomes

          i.     Win- lose method

One party wins while the other loses. This method includes dominance through power (suppression) ignoring majority of opinion. The winning party uses this power unilaterally.

 

        ii.     Lose- lose method

This method is based on compromise

Understanding that half of the loaf is better than nothing therefore, this method results into arbitration incase of collective bargaining

 

Common features of win- lose and lose- lose methods

• There is a clear “we- they” distinction between the parties e.g. management verses the workers
• Parties direct their energies towards each other in an atmosphere of victory and defeat
• Parties raises a score run view of issues
• Parties only see the issue from their own point of view

 

       iii.     Win- win method

In this method both the conflicting parties gain from the conflict. It includes consensus and decision making. Each party treats the problem as something which they have common interests to solve. Each party considers the interests of the owner as important as his own and  work towards the solution which helps both sides.

 

Conclusion

The first two methods i.e. supervision and total war are completely restrictive since hey limit communication between both sides. The results are satisfactory to only one side, leaving the basic conflicts unresolved.

Limited wars and bargaining methods can be described to be neutral where satisfaction to both sides depends to some extent on how the dispute is handled by the parties concerned Problem solving is the most constructive approach and allows both parties to communicate freely with common purpose.

 

SUPERVISION

Supervision refers to the expert overseeing of workers performance to ensure that workers are efficiently instructed, guided and assisted to ensure effective and efficient performance of their tasks in the organization.

Functions of Supervision

1. The supervision guides and instructs his subordinates on work performance.
2. He/she communicates important information to the subordinates
3. Maintains effective reporting about work performance in his/her respective section
4. Trains the workers on specific skill of work performance
5. Maintains discipline within his/her section
6. Organizes work within his/her respective sections to ensure order.

 

Guidelines to Effective Supervision

• Maintain an appropriate span of control. The supervisor should not supervise too many employees or very few employees
• Ensure that the supervisor posses the relevant skill As per their duties are concerned
• Motivate the supervisors well so as to ensure that they perform their duties with zeal
• Continuously upgrade the skill and knowledge of the supervisor as per as modern technology is concern
• Manager should offer necessary support to the supervisors to ensure that they realize the objectives of their section
• Maintain a good system of reporting and ensure regular follow up on the reports and especially recommendations made by supervisors
• Managers should provide all the relevant information about the organization and the specific section that the supervisor is responsible for
• Utilize the ideas of the supervisors and allow them some degree of creativity and initiative
• Establish the characteristics of the group being supervised in order to determine the degree of supervision. This means that implies that more closer supervision is required for a less motivated workforce and the vise-versa

 

Importance of Supervision

• Ensures order and discipline in the organization.
• Leads to effective and efficient performance of work at the organization ➢ Workers learn new skills that are essential for work performance.
• Effective supervision leads to improved morale in the organization
• Effective supervision enhances proper flow of information and therefore enhances effective communication
• It ensures timely delivery of services and products to the clients.

 

COORDINATION

This may be defined as an on going process whereby manager develop an integrated orderly and synchronized pattern of group effort among the subordinates and tries to attain unity of effort in the pursuit of common objectives.

NEEDS FOR COORDINATION

The following are reasons that make coordination necessary.

1. Increase in size and complexity of operation- coordination becomes necessary when operations become multiple & complex.
2. Clash of interest help to avoid conflict between individual and Organizational goals.
3. Specialization- when there is a lot of specialization in the organization coordination becomes necessary. 4. Interdependent of units

The various units & department that depend on each other need to be coordinated

5. Conflicts- In order to minimize potential conflicts coordination is necessary especially between the line & staff offers

 

STEPS FOR ACHIEVING EFFECTIVE COORDINATION

1. Clearly defined goals of the organization and units/ departments.
2. Simplified organization whereby the lines of authority and responsibility from top to bottom of the organization are clearly defined.
3. Effective leadership and supervision.
4. Establishment of an effective communication system within the organization
5. Establishment of liaison departments or employing a liaison officer
6. Introduction of staff groups, task force committees etc to take over some of the coordinative functions of line managers.

 

TOPIC: CONTROLLING

 

Specific Objectives

            By the end of this sub-module unit, the trainee should be able to:

1. explain the meaning of controlling function
2. describe various systems and processes of control

 

Control is that function of management that involves monitoring, measurement and correcting performance of employees and other organizational resources according to the plan.

The aim of control is to develop a feedback and to establish any deviations from the plan so as to take corrective action.

IMPORTANCE OF CONTROL

 

1. To ensure that resources are optimally utilized
2. To ensure the organization objectives are met
3. It limits accumulation of error as they are corrected on time
4. Control has a positive physiological impact on the subordinate i.e. when employees know they are being monitored, they become vigilant.
5. Control facilitate the decision making process. The organization can verify the quality of various policies.
6. Enables the organization to adopt to environmental changes ie properly designed control system can help managers anticipate, monitor and respond to charging environmental circumstances.
7. It can be used as an evaluation tool
8. It enables an organization achieve an optimal level of productivity
9. It ensures tasks are completed within the given time
10. It improves communication in the organization
11. Facilitates decentralization of authority duties can be delegated when there is effective control system.

 

ESSENTIAL REQUIREMENT FOR A GOOD CONTROL SYSTEM/FEATURES

1. Economy
   • good control system should be affordable and worth the cost.
2. Simplicity

It should be understandable and simple to administer. It should not be complicated.

3. Suitability

It should be suitable to the nature and requirement of the activities being controlled.

4. Promptness

It must detect and report deviations as soon as possible, thus should have time reporting of deviations.

5. Flexibility

It should be able to adjust according to changes in need and circumstances.

6. Suggestive of remedial action.
   • good control system should disclose where failures are occurring, who is responsible and what should be done about them.
7. Organizational pattern

It should conform to the basic structure of organization.(authority responsibility relationships of the organization)

8. Objectivity Control should be objective verifiable and specific it shouldn’t be influenced by personalities.

 

THE CONTROL PROCESS

The control process involves four major steps.

 

1. Establishing the standards

The setting of standards against which actual performance/results are to be evaluated is essential in managerial control. The standards should be clearly and precisely stated, accurate acceptable and attainable as they serve as the criteria against which the results are evaluated. They should also be communicated effectively.

 

2. Measurement of actual performance.

The actual performance is measured against the set standard. That is comparing the performance with the standards. The major question here is what have we achieved.

 

3. Compare the performance

Deviation/gaps from the expected standards are established through comparing the results and the expected performance. Critical deviation should be identified and diagnose their causes and their impacts on the organization.

 

4. Taking corrective action.

This implies taking a remedial action in order to bring back actual results in the line wit the standards. This may involve review of the plan/standards or putting in place steps to prevent deviations.

 

TYPES OF CONTROL

 

BUDGETARY CONTROL

 

A budget is a plan expressed in numerical terms for a specific period of time in future.

There are several types of budgets. They include:- • Sales budget – this shows the volume of sales expected

• Production budgets – shows the quantity and quality of goods to produced
• Material budgets – quantity & quality of raw materials
• Labour budgets – labour requirements
• Capital expenditure budgets – capital investment in assets
• Overhead budget – shows the estimates of overhead costs expected
• Master budget –shows the expected expenditure for the whole enterprise.

 

Budgetary control is therefore the process of defining desired performance through the preparation of budgets, measuring and comparing actual results with the corresponding budget data and taking appropriate actions to correct any deviations.

The use of budgets to coordinate, evaluate and control day to day operations in accordance with the specified goals in the budget.

 

The following are characteristics of budgetary control

1. Establish a budget or target performance ii. Record the actual performance iii. Compare the actual performance with the budgeted iv. Calculate the differences and analyze the reasons for them
2. Act immediately, if necessary for corrective actions to be taken vi. Follow up

ADVANTAGES OF BUDGETARY CONTROL

• Improved planning – expression of plans and policies in quantitative terms gives an overall view of operations and the relative importance of different activities.
• Budgetary controls promote efficiency by eliminating wasteful expenditures.
• Budget provides useful information for preparing quotations and filling tenders.
• Budgeting promotes cooperation and team spirit since all activities of various departments together.
• Budgets serve as a yardstick with which performance of employees can be evaluated and controlled.
• Helps management to delegate authority more freely over specified functions.
• It helps in determination of capital requirements and controlling the cash position of the organization.
• It indicates where executive action is necessary in order to secure desired performance.

 

DISADVANTAGES OF BUDGETARY CONTROL

 

• Budgeting is time consuming process and also expensive.
• Budgets may be used to hide efficiencies, as past precedents often become evidence for the present
• Rigid adherence to budgets discourages initiative.
• Budgets are estimates and can never be one hundred percent accurate.
• Budgets are only tools to efficient management and not a substitute for it.

 

NON-BUDGETARY CONTROLS

1. BREAK EVEN ANALYSIS

Break-even analysis is frequently used in business and economics to analyze the implication of various pricing and production decisions. This is an important planning and control device as it depicts the relationship between revenue and the total costs (fixed and variable). The break-even point is the point where the sales revenue is equal to the total costs.

Therefore below the break-even point losses occur and above it profits occur. The fixed and the variable costs are also indicated.

Break-even chart

Although the break-even analysis is an important control tool, it ignores.

• Price changes
• Time gap between production and sales
• Plant size
• Technology

 

2. PERSONAL OBSERVATION

 

Personal observation is a very important control tool as it supplements the other control devices such as budgets, audits reports etc. a manager who sits in his office and depend  only on the scientific devices hardly realizes a thorough job.

Personal observation allows the manager a better involvement in all the operations of the organization.

 

However, personal observation suffers the following limitations, • Manager has to be present thus it consumes a lot of time.

• There may be bias in the assessment of individual performance.
• It requires to be supplemented by other devices personal observation cannot give all the details.
• Some critical areas in the organization cannot be effectively evaluated through observation.
• Hawthorne effect may affect the efficiency of personal observation.

3. AUDITING

Auditing can either be external or internal, external auditing is carried out by an external chattered accountant and is enforced by law in respect to all joint stock companies and cooperatives. It ensures that the stakeholders and any interested parties are safe guarded against any manipulations and malpractices of management. The external out for certifies that the profit and loss account and the balance sheet of the firm gives a true and fair picture of profit or loss and the picture of Financial state of affairs of the company respectively.

For internal audits and a member of staff is appointed specifically for this function in the organization to verify all financial transactions and records and also analyze the overall control system in the organization.

 

4. REPORTS (Special)

Some complex operations in the organization require special analysis and reporting. This system of control can help supplement other control techniques especially where routine accounting and statistical reports falls to give adequate information.

 

SYMPTOMS OF INADEQUATE/ DEFECTIVE CONTROLS

1. Unexplained declines in revenue and profits ii. Degradation of services e.g. increase in customer complaints iii. Employee dissatisfaction. This will be evidenced by increase in grievances iv. Working capital shortage
2. Idle facilities and personnel vi. Disorganized operations vii. Excessive costs

 

DISTINCION BETWEEN PLANNING AND CONTROL

Planning

• It’s deciding and present what is to be done
• Planning is a decision making activity
• Planning uses estimates
• Planning is less structured

 

Control

 

1. Control rounds off the process of managing organizational resources by measuring results and checking them against previously agreed standards
2. Controlling places more reliance on measured data from specific cases
3. Control is a monitory process 4. Controlling is highly structured.

SIMILARITIES

• Both are concerned with identifying and quantifying standards of performance.
• Measures used for planning purposes are frequently the same with one used for controlling purposes are frequently the same with one used for controlling purposes e.g. targets

• Both makes use of quantitative technique 

LEARNING RESOURSES

• Principles and practice of management by Saksena
• Management dynamics by Sagimo iii. Management by Harold Koontz. Management principles by A Cole

EVALUATION

Explain the purpose of control in business organizations. ii. Describe the control process.

“Planning is looking ahead while control is looking back” Discus

Explain the advantages of budgetary controls in the organization.

Describe five forms of non-budgetary controls.

Explain the limitations of personal observation as a control system.

Explain the major requirements of an effective control system