Advanced Human Resource Management Ii: Study Pack ON

STUDY PACK
ON
ADVANCED HUMAN RESOURCE
MANAGEMENT II
PROFESSIONAL EXAMINATION II
STUDY PACK ON
ADVANCED HUMAN REOURCE MANAGEMENT II

PROFESSIONAL EXAMINATION II
@CIPM 2019
FOURTH EDITION
CHARTERED INSTITUTE OF PERSONNEL
MANAGEMENT OF NIGERIA
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CIPM NIGERIA.
II
FOREWORD
This third edition of our study pack has been made available for the use of our professional students to
assist them in effectively accomplishing their HR professional goal as dictated by the Institute from
time to time.
The text is meant not only for Chartered Institute of Personnel Management of Nigeria (CIPM) students
but also for researchers, HR practitioners and organisations embarking on the promotion of human cap-
ital development in its entirety. It has therefore been written not only in a manner that users can pass
CIPM professional examinations without tears, but also to provide HR professional practitioners further
education, learning, and development references.
Each chapter in the text has been logically arranged to sufficiently cover all the various sections of this
subject in the CIPM examination syllabus to enhance systematic learning and understanding of the
students. The document, a product of in-depth study and research, is both practical and original. We
have ensured that topics and sub-topics are based on the syllabus and contemporary HR best practices.
Although concerted effort has been made to ensure that the text is up to date on matters relating to
theories and practice of contemporary issues in HR, we still advise and encourage students to comple-
ment the study text with other relevant literature materials because of the elastic scope and dynamics of
the HR profession.
Thank you, and have a productive preparation as you navigate through the process of becoming a pro-
fessional in Human Resources Management.
Ajibola Ponnle.
REGISTRAR/CEO
III
ACKNOWLEDGEMENT
On behalf of the President/Chairman of the Governing Council and the entire membership of the Char-
tered Institute of Personnel Management of Nigeria (CIPM), we acknowledge the intellectual prowess
of Mr. Dumebi Ideh and Bright Aghogban in writing this well-researched text Advanced Human Re-
source Management II. The meticulous work of our reviewers, Mr. Solomon Makinde, Mr. Temitope
Ologunoye and Dr. Kehinde Onijingin has not gone unnoticed and is at this moment acknowledged for
the thorough review of this edition. .
We also commend and appreciate the efforts of members of the Education Committee of the Institute
for their constant support.
Finally, we appreciate the contributions of the National Secretariat staff competently led by the Regis-
trar/CEO, Mrs. Ajibola Ponnle and the project team, Dr. Charles Ugwu, Mrs. Nkiru Ikwuegbuenyi, ,
Mrs. Livina Onukuba, and others.
IV
Advanced Human Resource Management II PE2/003
TABLE OF CONTENTS
CHAPTER ONE Page
PEOPLE MANAGEMENT ACCOUNTABILITIES 1

1.0 Introduction 1
1.1 Personnel Management 1
1.2 Human Resource Management 2
1.3 Job Analysis & Design 3
1.4 Human Resource Development 4
1.5 Compensation Management 5
1.6 Performance Management 5
1.7 Competency-Based Assessment 6
1.8 Employee Development 6
1.9 Training & Development 7
1.10 Participative Management 7
1.11 Employees’ Relationship Management 8
1.12 Career Development 9
1.13 Talent Management 9
1.14 Human Capital Management 10
1.15 Employee Engagement Management 10
1.16 Knowledge Management 11
1.17 Employee Retention 11
1.18 Social Entrepreneurship 12
1.19 Youth Entrepreneurship 12
1.20 Work-life Balance 12
Review questions 14
References 15
CHAPTER TWO
HUMAN RESOURCE POLICIES AND PROCEDURES 16

2.0 Introduction 16
2.1 Overview of HR Policies 16
2.2 HR Policy Formulation 16
2.3 Implementation of HR Policies 17
2.4 Coverage of HR Policies 17
2.5 Overview of HR Procedure 18
2.6 Formulation of HR Procedure 18
2.7 Implementation of HR Procedures 19
2.8 Flexibility in HR Policies and Procedures Application 19
2.9 Summary of Chapter 19
Review Questions 20
References 20
V
CHAPTER THREE
COMPENSATION AND BENEFITS MANAGEMENT 21

3.0 Introduction 21
3.1 Overview of Compensation and Benefits 21
3.2 Compensation Policy 22
3.3 Determination of Compensation and Benefits 22
3.4 Payroll Management 23
3.5 Elements of Compensation and Benefits 23
3.6 Pension Scheme 24
3.7 PAYE Management 24
3.8 Employee Compensation Scheme. (ECA remittance and Claim process) 25
3.9 Financial Incentives and Non-Financial Incentives 25
3.10 Guaranteed Pay 25
3.11 Variable Pay 26
3.12 Overtime Pay 26
3.13 Executive Compensation 26
3.14 Expatriate Compensation 27
3.15 Employee Stock Option 27
3.16 Salary Structure 27
Review Questions 30
References 30
CHAPTER FOUR
EXIT MANAGEMENT 31
4.0 Introduction 31
4.1 Exit Management Policy 31
4.2 Exit Modes 32
4.3 Exit Procedure 38
4.4 Exit Documentation 41
4.5 Communication of Exit Decision 41
4.6 Contractual Considerations 41
4.7 Summary of the Chapter 42
Review Questions 43
References 43
CHAPTER FIVE
ORGANISATIONAL DEVELOPMENT (OD) 44
5.0 Introduction 44
5.1 Overview of Organisational Development 44
5.2 Assumptions of Organisational Development 45
VI
5.3 Organisational Design 46
5.4 Elements of Organisational Design 48
5.5 Formal and Informal Organisational Architectures 50
5.6 Change management 51
5.7 The Roles of HR in Organisational Development 52
Review Questions 54
References 54
CHAPTER SIX
PERFORMANCE MANAGEMENT 55
6.0 Introduction 55
6.1 Performance Objectives Setting 58
6.2 Performance Measurement and Evaluation 59
6.3 Performance Management Tool 63
6.4 Performance Management Automation 64
Review Questions 69
References 69
CHAPTER SEVEN
STAFFING 70
7.0 Introduction 70
7.1 Manpower Planning 70
7.2 Recruitment 73
7.3 On-Boarding 80
Review Questions 83
References 83
CHAPTER EIGHT
PUBLIC SECTOR HUMAN RESOURCE PRACTICE 84

8.0 Introduction 84
8.1 Overview of Public Sector HR Practice 84
8.2 National Manpower Planning 86
8.3 National Manpower Board 87
8.4 National Salaries, Incomes and Wages Commission 88
8.5 Ministry of Labour and Employment 88
8.6 Wages and Salaries Determination in the Public Sector 89
8.7 Career management in the Ministries, Departments and Parastatals 90
VII
8.8 Performance Management System in the Public Sector 90
8.9 Promotion System in the Public Sector 90
8.10 Recruitment System in the Public Sector 91
Review Questions 92
References 92
CHAPTER NINE
TALENT MANAGEMENT 93
9.0 Introduction 93
9.1 Overview of Talent Management 93
9.2 Talent Management Policy and Talent Pool Selection 94
9.3 Talent Attraction 94
9.4 Talent Retention 94
9.5 Talent Development 94
9.6 Career Management 96
9.7 Career Planning and Development 96
9.8 Career Pathing 98
9.9 Succession Planning 98
9.10 Career Counselling 99
9.11 Dual Careers 99
9.12 Rewarding Talent 100
Review Questions 101
References 101
CHAPTER TEN
EXPATRIATE MANAGEMENT 102

10.0 Introduction 102
10.1 Expatriate Management Policy 103
10.2 Determination of Expatriate Roles 103
10.3 Expatriate Quota 104
10.4 Expatriate Recruitment 107
10.5 Compensation and Benefits for Foreign Nationals and Expatriate 108
10.6 Expatriate Knowledge Transfer 109
10.7 Attaché (Understudy) to the Expatriate 110
10.8 Adjustment of Expatriate’s Spouse and Family 110
10.9 Expatriate Returns 110
10.10 Expatriate Repatriation 111
10.11 Expatriate Contract 111
10.12 The Role Nigerian Immigration Service 112
VIII
10.13 The Role of the Nigeria Customs Service 112
10.14 The Role of Ministry of Interior 112
References 113
CHAPTER ELEVEN
HUMAN RESOURCE BUSINESS PARTNERSHIP 114

11.0 Overview of HR Role in Business Management 114
11.1 Alignment between HR Strategy and the Business Strategy 114
11.2 HR as Business Partnership 114
11.3 HR as Employee Champion 115
11.4 HR as Change Agent 116
11.5 Administrative Expertise 116
11.6 Centre of Service Excellence 116
References 118
CHAPTER TWELVE
EMPLOYEE ENGAGEMENT 119

12.0 Overview of Employee Engagement 119
12.1 Employee Engagement Policy 120
12.2 Employee Engagement Drivers/Factors 120
12.3 Measurement of Employee Engagement 121
12.4 Improving Employee Engagement Level 122
12.5 Importance of Employee Engagement 122
12.6 Levels of Employee Engagement 122
References 124
CHAPTER THIRTEEN
WORK-LIFE- BALANCE 126

13.0 Overview of Work-Life-Balance 126
13.1 Work-Life-Balance Policy 126
13.2 Work-Life-Balance Initiatives 127
13.3 Determination of Work-Life-Balance Initiatives 128
13.4 Implementation of Work-Life-Balance Initiatives 128
13.5 Benefits of work-Life-Balance Initiatives 129
IX
References 130
CHAPTER FOURTEEN
ORGANISATIONAL HEALTH, SAFETY AND ENVIRON. ISSUES 131

14.0 Overview of Health, Safety and Environment in Organisations 131
14.1 Health, Safety and Environmental Regulations – Local and International 132
14.2 Health, Safety and Environmental Procedure 132
14.3 Medical Schemes and Employee Wellness Programmes 133
14.4 Personal Protective Equipment (PPE) 134
14.5 Emergency Management Plans 134
14.6 Emergency Response Plan 134
14.7 Emergency Preparedness Training 135
14.8 The Role of the Fed and State Regulatory Agencies, Ministries and Depts. 135
14.9 On Site Clinic 136
14.10 First Aid Boxes 136
References 137
CHAPTER FIFTEEN
HUMAN RESOURCE METRICS AND ANALYTICS 138

15.0 Overview of HR Metrics and Analytics 138
15.1 Objectives of HR Metrics and Analytics 138
15.2 HR Metrics 139
15.3 HR Analytics 140
15.4 Data Gathering for the HR Analytics 140
15.5 Data Presentation for Decision Making 141
15.6 HR Metrics Templates 141
References 145
CHAPTER SIXTEEN
CASES AND ISSUES IN HR MANAGEMENT 146
16.0 Introduction 146
16.1 Steps in case Studies 146
16.2 Case Studies 147
X
CHAPTER ONE
PEOPLE MANAGEMENT ACCOUNTABILITIES
LEARNING OBJECTIVES
At the end of this chapter, students will be able to::
1. understand the various areas of people management accountabilities;
2. explain the differences between personnel management and human resource manage-
ment; and
3. discuss the inter-relationship among the various concepts discussed in the chapter
1.0 Introduction
The success of any organisation is dependent on the quality of the people it has. Therefore, an
organisation without quality people is most likely designed to fail. At the macro level, the
quality of human resource determines the difference between successful nations and the un-
successful ones; successful organisations and unsuccessful ones. The management of an or-
ganisation’s human resource is key and organisations are now paying serious attention to it.
Organisations’ employees are now being properly trained, developed and maintained to be able
to meet the ever-growing global challenges brought about by globalisation.
The aim of this chapter therefore is to give a summary of the people management accountabil-
ities for contemporary human resource practitioners. The discussion covers twenty of such
concepts that require the understanding of human resource experts.
1.1 Personnel Management
The origin of personnel management can be traced to the concern about exploitation of people
working in factories and was introduced through the laws of the land to deal with issues per-
taining to grievances and welfare of workmen. As the dynamics in relations between trade
unions and management changed, the personnel management responsibilities grew beyond
welfare to other areas such as ensuring amicable industrial relations and effective personnel
administration. During this period, the emphasis was on formulating and monitoring conform-
ity to rules and procedures.
With the shift in business dynamics, the realisation dawned on companies that people and their
knowledge is the only source of sustainable competitive advantage as other resources related
to materials, equipment, technology, finances etc have proved short lived in the absence of
human capital capable of deploying these resources effectively and efficiently.
Personnel management is “the planning, organizing, compensation, integration and mainte-

nance of people for the purpose of contributing to organisational goals” Flippo, (1980).
Traditionally, the term personnel management was used to in reference to the set of activities
concerning the workforce which included staffing, compensation, training, welfare, personnel
records, contractual obligations and other transactional or administrative tasks. In this respect,
personnel management encompasses the range of activities that have to do with managing the
workforce rather than resources.
1
Personnel management is more administrative in nature and the personnel manager’s main job
is to ensure that the needs of the workforce as they pertain to their immediate concerns are
taken care of. Furthermore, personnel managers typically play the role of mediators between
the Management and the employees and hence there was always the view that Personnel man-
agement was not in tune with the objectives of the business. The personnel manager is the head
of personnel department and he performs both managerial and operative functions of manage-
ment.
His/her role can be summarized as:

1. He/she provides assistance to Top Management - The Top Management are the people
who decide and frame the primary policies. All kinds of policies related to personnel or
workforce can be framed out effectively by the personnel manager.
2. He/she advises the line manager as a staff specialist- Personnel manager acts like a
staff advisor and assists the line managers in dealing with various personnel matters.
3. He/she is a counsellor. As such, personnel manager attends to problems and grievances

of employees and guides them. He tries to solve them in the best of his/her capacity.
4. Personnel manager acts as a mediator – He/she is a linking pin between management

and workers.
5. He/she acts as a spokesman- Since he/she is in direct contact with the employees;
he/she is required to act as a representative of organisation in committees appointed by
Government. He/she represents the company in training programmes etc.
1.2 Human Resource Management

The term ‘human resourcemanagement’ has virtually replaced ‘personnel management’ (Arm-
strong,1984). Human resource management is regarded by some personnel managers as just a
set of initials or new wine in old bottles. It could be no more and no less than another name
for personnel management. However, Guest (1987) and Storey (1995) regard Human Resource
Management as a substantially different model built on:
- Unitarism: where employees share the same interest as employers
- Individualism in management approach
- High commitment and strategic alignment; where HR strategy is integrated with busi-
ness strategy
- People as assets rather than tools
- A more holistic model than traditional personnel management
The overall purpose of HRM is to ensure that the organisation is able to achieve success through
its people. It sets to increase organisation’s effectiveness and capability- the capacity of an
2
organisation to achieve its goals by making the best use of the resources available to it. Human
resource management involves all management decisions and actions that affect the nature and
relationship between the organisation and its employees – its human resources (Beer et al.,
1984). (Guest, 1987). HRM comprises a set of policies designed to maximize organisational
integration, employee commitment, flexibility and quality of work.
1.3 Job Analysis and Design

Job analysis is the process of determining and recording all the pertinent information about a
specific job, including the tasks involved, the knowledge and skill set required to perform the
job, the responsibilities attached to the job and the abilities required to perform the job success-
fully. Job analysis differentiates one job from another. This is the term used to describe the
process of analysing a job or occupation into its various components. That is, organisational
structure, work activities, and informational content so that managers can better understand the
processes through which the jobs are performed most effectively.
The outcome of job analysis is job description and job specification. Job description defines
what job holders are required to do in terms of activities, duties or tasks, reporting lines, re-
sponsibilities, accountabilities, job objectives or purpose etc. They are more concerned with
the duties to be performed rather than the competencies required performing them though in
some instances, the required competencies are embedded in the job description template. On
the other hand, Job specification focuses on the individual who performs the job and indicates
the knowledge, abilities, skill-set and other characteristics that an individual must have to be
able to perform the job effectively.
1.3.1 Methods of Job Analysis:

Observation Method: The individuals performing the job are observed and relevant points
are noted. What they do, how they do it and how much time it takes to do it and job hazards
are some of the things to observe. This method is most appropriate for routine administrative
or manual roles. The limitation here is that employees who know that they are being observed
may put up acts that would give false outcome of the observations.
Interviews: Applied when the job is complex. Structured interviews have been adjudged the
most effective. Group interview method could also be used for a group of employees perform-
ing the same or similar job. In conducting interview, the following checklists serve as general
guide:
a. What is the title of your job?

b. To whom are you responsible?
c. Who is responsible to you?
d. What is the main purpose of your job; what are you expected to contribute?
e. What are the key activities you have to carry out in your role?
3
f. What are the results you are expected to achieve in each of those key activ-
ities?
g. What are you expected to know to be able to carry out your job?
h. What skills should you have to carry out your job?
i. What set of behaviours are you supposed to demonstrate?
Questionnaire: The advantage of questionnaire is that they produce information quickly and
cheaply for a large number of jobs. They can also save interviewing time. However, the accu-
racy of results will depend on willingness and ability of job holders to complete questionnaires
and also provide sincere and accurate responses.
1.4 Human Resource Development
Employees are the most important and valuable resource of any organisation. Effective em-
ployees can build progressive growth around organisations. As noted by Pattanayak (2010),
competent and motivated people can make things happen and enable organisations achieve
their goals. He therefore opines that organisations should on continuous basis ensure that the
dynamism, effectiveness, competency and motivation of its people remain at a high level. Pat-
tanayak (2010) defined human resource development as a continuous process to ensure the
development of employee dynamism, effectiveness and motivation in a systematic and planned
manner.
Human resource development is another facet of people management practices that comprises
of six functional areas, training, development, career planning, career development, organiza-
tion development and performance management. Training is a procedure planned to provide
organizational people with the required knowledge and skills to perform their current job func-
tions effectively whilst development is a learning programs established to focus on long-term
learning needs of people at work (Fajana, 2002). The environment under which organisations
operate is in a constant state of flux and the nature of jobs is equally changing. Organisations
are faced with new challenges in terms of stakeholders’ expectations, technological changes,
new knowledge base and opportunities. Employees therefore, need to possess a variety of com-
petencies i.e. knowledge, skills and abilities to deal with technical, human relations and con-
ceptual areas to perform its functions optimally.
Pattanayak (2010) opines that human resource development aims to identify competency gaps
among employees and train them to perform present roles efficiently and create conditions that
will help employees bridge the identified gaps through development.
Employee development encompasses all deliberate and structured efforts geared toward mak-
ing every employee gets motivated, gets encouraged and equipped on the job so that his per-
formance can be consistent and improved upon. Development takes-off from where training
stops. It states that after training has been implemented, there is a clear and measurable attitu-
dinal change in the behaviour of the learner in such a way that the expected value to the oper-
ation of the institution or environment is evident. Development is a twin disciplinary sister to
4
training, they work together. Training is the first intervention strategy in the employees’ com-
petency improvement strategy.
Employee’s development goes beyond training. Among the key tools for employees’ develop-
ment are: career development, talent management, knowledge management, performance
review, coaching and mentoring, et cetera.
1.5 Compensation Management

Compensation management and reward management are used interchangeably by human re-
sources experts. Compensation management remains important and complex issues in human
resources management. As noted by Fajana (2000), compensation management is a contractual
phenomenon. Employees’ compensation encompasses the totality of what employees receive
in return for their services.
It includes financial and non-financial rewards that determine how well they live in the society.
Compensation management remains important to any employee as there is hardly any matter
that leads to strain in labour management relations or lead to industrial action more than reward
related issues
1.6 Performance Management

Performance management is both a strategic and integrated approach to delivering successful
results in organisations by improving performance and developing the capabilities of teams
and individuals (Armstrong and Baron, 2002).
Armstrong (2012) defined performance management as a systematic process for improving

individual, team and organisational performance. It is a means of getting better results by un-
derstanding and managing performance within an agreed framework of planned goals, stand-
ards and competency requirements. Processes exist for establishing shared understanding about
what is to be achieved, and for managing and developing people in a way that increases the
probability that it will be achieved in the short and longer term. It focuses people on doing the
right things by clarifying their goals. It is driven by line managers.
Performance is managed at the corporate level, strategic business unit level and at individual
level. Performance management at corporate level is the primary responsibility of top manage-
ment who plan, organise, monitor, control activities and provide leadership to achieve strategic
goal for the benefits of stakeholders. Performance management at business level according to
Armstrong (2012) provides the medium for linking employee performance targets to the factors
crucial to the success of the business. Performance Management at the individual level is a
means of achieving better result by understanding and managing performance within an agreed
framework of planned goals, standards and competency requirements.
5
1.7 Competency-Based Assessment
The nature of work is changing so much that the concept of a ‘job’ is becoming obsolete. Alt-
hough many people will continue to have jobs for some time to come, but the focus is becoming
more of ’teams’ where the intention is to get tasks accomplished rather than focusing on spe-
cific task requirements.
It focuses on broader requirements and on those requirements, that might be applicable for a
wide variety of jobs within the organisation. Therefore, it is imperative that a more scientific
approach like competency-based assessment be used to define and understand the knowledge,
skills and attitude required to perform a job effectively.
Evaluating an employee’s performance based on pre-defined competencies and their behav-

ioural indicators, in turn is called competency-based assessment. Generally, experts view com-
petencies as characteristics of employees (or teams of employees) that lead to success on the
job. The idea driving this approach is that organisations must define what people need to be
successful. It is not sufficient to know whether an employee can type a letter, it is also important
to know whether the employee will adapt to the organisation.
Competency based recruitment is selection process that places much emphasis on individual
knowledge, skills, abilities and personal characteristics that directly influence job performance.
1.8 Training:
Training could be defined in either of the following ways:
- A deliberate and structured effort aimed at equipping the trainee with the right
knowledge, skill and attitude needed to make him/her more effective and efficient
in the roles so defined for him.
- It could also be seen as ‘the process that involves developing skills and learning
concepts, rules, or attitudes in order to increase effectiveness on a particular job.
(Fajana, 2002).
The focus of training is to up-scale and updates the knowledge, the skills and the attitude of an
employee. This suggests that the focus of training is to cause a positive improvement and up-
date in the behavioural tendencies of a person so trained, so that there is positive improvement
in the application and usage of his three critical domains– the knowledge, the skill and the
attitude. (KSA).
Setting up of training agenda in every work environment involves the following:

i. A clear understanding of the vision and mission of the environment
ii. A deliberate definition of the focus of training
iii. The method to be adopted in implementing it
6
iv. The technique of establishing whether the training has been done to influence
the behaviour of the trainee for the better.
v. A clear procedure of reporting the achievement recorded in training and learn-
ing effort
vi. Measuring the return of investment on training
1.9 Participative Management

International Institute for Labour Studies (1971) describes participation as a “process whereby
workers have a share in reaching managerial decisions in the enterprise”. Participative man-
agement is a type of management in which employees at all levels are empowered and encour-
aged to contribute ideas towards identifying and setting organisational-goals, problem-solving,
and other decisions that may directly affect them. Participative management is not itself a goal
to be achieved; rather it is a process that an organisation can use to achieve the goals that the
total organisation values.
Participative management is an open form of management where employees have a strong

decision-making role. It means to take part in the act or art of managing at all levels of the
organisation. There are four processes which usually influence participation, these are infor-
mation sharing, training, employee decision making and rewards. The benefits of this process
range from sense of ownership, pride and motivation for higher productivity.
1.10 Employees’ Relationship Management

Employee relationship describes the interconnections (of information systems) that exist be-
tween employees in the workplace (Armstrong, 2006). It could be defined as a process that
companies use to effectively manage all interactions with employees in order to achieve the
goals of the organisation. It is the totality of actions and inactions that sustain the interest of
employees in willing to continue to work and deliver value to the organisation. It encompasses
material and non-material actions, policies and development inspired in a work environment.
1.10.1 Identification of driving objectives

For most companies, relationship management centres on items like attracting and retaining
employees. Common measures of the effectiveness of these relationships include time to hire,
turnover and employee satisfaction.
a. Determining employee needs. It is not enough to assume that a company or even its HR
professionals know what is important to employees. Needs vary greatly depending on
employee characteristics, age, gender, etc. as well as the type of job being performed.
It is a good idea to find out directly from employees what their needs are. You can do
this in one-on-one conversations that take place informally throughout the year, during
formal employee evaluation meetings and through surveys and polls that can provide a
quantitative indication of employee needs.
7
b. Balancing work and life needs. There is widespread speculation in the 21st century that
effective employee relationship management requires consideration of the whole em-
ployee. That means taking steps to ensure that the employee’s work-life needs are well
balanced. This can occur through creative staffing that might involve part-time, flexi-
time or even off-site work assignments.
c. Open andhonest communication - Communication is critical to establishing strong em-

ployee relationships. Managers must be committed to communicating regularly and
honestly with employees about issues that impact their work. The more open organisa-
tions can be, the more likely they are to establish strong relationships that lead to in-
creased loyalty and productivity among employees and decreased turnover and dissat-
isfaction.
d. Measuring and monitoring results. Effective employee relationship management re-

quires on-going attention. That means that managers and their HR departments should
be alert at all times for signs of discontent, which can be subjective, as well as carefully
monitor the results of more formal assessments. These results should also be shared
with employees. Too often employees are asked to conduct surveys and are not in-
formed of the results or what will be done with the results.
e. Relationships are interpersonal. Ultimately, employee relationship management re-

quires the same skills and processes required to manage any relationship; a clear under-
standing of employees’ needs and a desire to meet those needs is fundamental. Then
steps must be taken to interact effectively with employees through a variety of commu-
nication channels, both interpersonal and formal (e.g., intranet, employee newsletters,
etc.). Finally, measurement of the effectiveness of these efforts should be frequent and
on-going, with improvements and adjustments made when results are not showing con-
tinual improvement or satisfactory levels of performance.
1.11 Career Development:

Career development has been defined as both the way an individual’s career unfolds, and the
various activities undertaken by the individual or their organisation to facilitate these (Hirsh
and Jackson, 2004). It is the on-going acquisition or refinement of skills and knowledge, in-
cluding job mastery and professional development, coupled with career planning activities.
Job mastery skills are those that are necessary to successfully perform one’s job. Professional
development skills are the skills and knowledge that go beyond the scope of the employee’s
job description, although they may indirectly improve job performance.
In simple terms, it means providing employees an opportunity to grow; especially those em-
ployees who deliver result.
Growth, to an employee, means one or more of the following:

a) Climbing up the ladder in the organisation hierarchy.
8
b) On – going increase in remuneration.
c) Acquiring higher level skills and competencies.
d) Occupying higher level job positions.
e) Having an opportunity to avail oneself of some exclusive benefits.
Career development is not a mere management responsibility. It is a composite organisational

process which involves people, addressing their ambitions, assigning them roles and responsi-
bilities commensurate with their potential, evaluating their performance, and creating job po-
sitions to accommodate growth ambitions of employees.
1.12 Talent Management

Quality people with entrenched interests are the key to success of any organisation. Talent
management according to Dessler (2011) is the automated end-to-end process of planning, re-
cruiting, developing, managing and compensating employees throughout the organisation. To
some people, talent management is concerned with the high flyers in an organisation. However,
as stated by Armstrong (2006), talent process should not be limited to a privileged few as eve-
ryone in the organisation has talent, even though some have more talents than others. The aim
of organisations is to develop and maintain a talent pool that consists of a skilled, engaged and
committed workforce. The talent pool is populated through the attraction and retention policies
of the organisation. For example, while the attraction policies lead to programmes that will
bring about opening up the organisation to the outside world, the retention policies aim at en-
suring that attracted talents remain committed to the organisation.
As noted by Armstrong (2006), the result of these policies is a talent flow that creates and
maintains the talent pool. These two policies are among the steps organisations take to make
them ‘great places to work’. To acquire talent pool requires process of resourcing, retention
policy, succession and career planning and learning and development.
1.13 Human Capital Management

Human capital comprises the knowledge, skills and abilities of an organisation’s employees
and constitutes the key elements of the market worth of a company (Armstrong, 2012). The
constituents of human capital include intellectual capital, social capital and organisational cap-
ital. Human capital management according to Baron and Armstrong (2007) is about collection,
analyses and reporting on data that inform the focus of value adding people management, stra-
tegic investment and operational decisions at corporate level and at the level of front line man-
agers.
Human capital management uses metrics as a guide to managing people and regards them as
assets and emphasise that competitive advantage can be achieved by strategic investment in
employees through employee engagement and retention, talent management, learning and de-
velopment programmes. As noted by Armstrong (2012), human capital management provides
a connection between human resources and business strategy.
9
1.14 Employees Engagement Management
Employee engagement is a workplace approach resulting in the right conditions for all mem-
bers of an organisation to give their best each day, committed to their organisation’s goals and
values, motivated to contribute to organisational success, with an enhanced sense of their own
well-being.
It is a situational approach whereby employees are afforded the best possible environment to
carry out their work, thereby enabling them to fully utilize their potentials in completing jobs.
Encouragement through extrinsic and intrinsic motivation is an important factor in employee
engagement. Employee engagement enables workers to release their imagination and to con-
tribute towards organisational development initiatives.
Employee engagement is premised on giving and giving more, with the belief that the gesture
will be reciprocated. It is a relationship based on trust, integrity, two-way commitment and
communication between an organisation and its members. It is an approach that increases the
chances of business success, contributes to organisational and individual performance, produc-
tivity and well-being by getting employees committed and involved in building an organisa-
tion.
It is the emotional commitment that employees have to the organisation and its goals, resulting
in the use of discretionary effort. Because they care more, they are more productive, give better
service, and even stay in their jobs longer. All of that leads to happier customers, who buy more
and refer more often, which drives sales and profits higher, finally resulting in an increase in
stock price (for quoted companies).
1.15 Knowledge Management

Knowledge is the full utilization of information and data, coupled with the potential of people’s
skills, competencies, ideas, intuitions, commitments and motivations.
Knowledge management is ‘any process or practice of creating, acquiring, capturing, sharing
and using knowledge, wherever it resides, to enhance learning and performance in organisation
(Armstrong, 2006).
Knowledge management in organisations must be considered from three perspectives with dif-
ferent horizons and purposes:
1) Business perspective – focusing on why, where, and to what extent the organisation
must invest in or exploit knowledge. Strategies, products and services, alliances, acqui-
sitions, or divestments should be considered from knowledge related point of view.
2) Management perspective – focusing on determining, organizing, directing, facilitating,

and monitoring knowledge related practices and activities required to achieve the de-
sired business strategies and objectives.
3) Hands–on operational perspective – focusing on applying the expertise to conduct ex-

plicit knowledge related work and tasks.
10
Knowledge management is about getting from those who have it and giving to those who need
it, to improve organisational effectiveness. Knowledge management allows organisations to
capture, apply and generate value from their employees’ creativity and expertise.
1.16 Employee Retention

Employee retention refers to policies and practices companies use to prevent valuable employ-
ees from leaving the organisation. (Armstrong, 2006).
Employee retention involves taking measures to encourage employees to remain in the organ-
isation for as long as they are creating values. Effective employee retention is a systematic
effort by employers to create and foster an environment that encourages current employees to
remain employed, by having policies and practices in place that address their diverse needs.
Employers concerns are the costs of employee turnover (including hiring cost, productivity
loss, elongated learning curve, accident rate, error rate etc). The cost associated with turnover
may include lost customers, business and damaged morale. In addition, there are the hard costs
of time spent in screening, verifying, hiring, and training the new employee just to get back to
where you started. The main drivers of Employee Retention are: compelling future, positive
work environment, opportunities for personal and professional growth, and financial rewards.
1.17 Social Entrepreneurship

Social Entrepreneurship is being responsive to the needs of our times. The non-economic mo-
tivational aspect of social entrepreneurial activity revolves around its passion of accomplishing
a social mission, ability to incorporate innovation, striving to create impact not just to earn
income. According to Gregory J. Dees (2009) Social Entrepreneurship “combines the passion
of a social mission with an image of business – like discipline, innovation, and determination
commonly associated with it”. Social Entrepreneurship refers to the practice of combining in-
novation, resourcefulness and opportunity to address critical social and environmental chal-
lenges. The key concept of Social Entrepreneurship is innovation, market orientation and sys-
tems change.
Social Entrepreneurs are those exceptional individuals who dream and take responsibility for
an innovative and interesting idea for positive social change, and nurture that idea from dream
to reality. According to Martin and Osberg (2007), social entrepreneur aims for value in the
form of large scale transformational benefit that accrues either to a significant segment of so-
ciety or to society at large. Social Entrepreneurs are drivers of change.
Together with institutions, networks, and communities, social entrepreneurs create solutions
that are efficient, sustainable, transparent, and have measurable impact. What enables social
entrepreneurs to make lasting impact on the most difficult problems is a special combination
of ground breaking activity and steadfast execution, which is called SEQ (Social Entrepreneur
Intelligent Quotient).
11
1.18 Youth Entrepreneurship
Entrepreneurship is the recognition of an opportunity to create value, and the process of acting
on this opportunity, whether or not it involves the formation of a new entity. Youth entrepre-
neurship has been touted by educators and employers as an alternative means for acquiring
skills and attitudes necessary for entering the workforce. It involves the development of entre-
preneurial attitudes, skills and opportunities for young people from middle school through
young adulthood. (Schoof, 2006).
1.19 Work-Life Balance

Work-life balance practices are concerned with providing scope for employees to balance what
they do at work with the responsibilities and interests they have outside work, and so reconcile
the competing claims of work and home, by meeting their own needs as well as those of their
employers (Armstrong, 2006).
The term work-life balance has largely replaced ‘family friend policy’. As Kodz et al. (2002)
explained, the principle of work-life balance is that: ‘There should be a balance between an
individual’s work and their life outside work, and that this balance should be healthy’.
Work-life balance is a concept that supports the efforts of employees to split their time and
energy between work and the other important aspects of their lives. It is a daily effort to make
time for family, friends, community participation, spirituality, personal growth, self-care, and
other personal activities, in addition to the demands of workplace. Work-life balance is assisted
by employers who institute policies, procedures, actions, and expectations that enable employ-
ees to easily pursue more balanced lives.
The pursuit of work-life balance reduces the stress employees’ experience. When they spend
most of their days on work-related activities and feel as if they are neglecting the other im-
portant components of their lives, stress and unhappiness result. Work-life balance enables
employees to feel as if they are paying attention to all the important aspects of their lives.
Since many employees experience a personal, professional, and monetary need to achieve,
work-life balance, employers can assist employees to experience work-life balance by offering
such opportunities as flexible work schedules, paid time off (PTO) policies, and company –
sponsored family events and activities.
12
Review Questions
1. Employee relationship describes the interconnections that exist between employees in
the workplace. Discuss.
2. Compare and contrast the concepts of personnel management and human resource man-
agement.
3. As a human resource manager, what measures would you take to encourage employees
to remain in your organisation?
4. What is knowledge management? Discuss the three perspectives from which

Knowledge Management could be considered in organisations.
5. Why is job analysis relevant in all areas of people management accountabilities?

6. Discuss the methods of job analysis.
References
Armstrong, M. (1984). A handbook of personnel management practice. (2nd ed.). London,
Kogan Page
Armstrong, M. (2006). A handbook of human resource management practice (10th ed.).
London, Kogan Page
Armstrong, M. (2012). Armstrong’s handbook of human resource management practice
(12th ed.). London, Kogan Page
Armstrong M., & Baron, A., (2004). Managing performance: Performance Management in
action; London, CIPD
Beer, M., Spector, B., Lawrence, P., Quinn Mill, D., & Walton, R. (1984). Managing human
assets, New York; The Free press
Dessler, G. (2011). Human resource management (12th ed.) New Jersey, Pearson education
inc.
Fajana, S. (2002). Human resource management: An introduction, Lagos, Labofin and
Company
Flippo, E. (1980). Personnel management (Int’l Students ed.), Kogakusha, McGraw-Hill
Guest, D. (1987). Human resource management and industrial relations, Journal of
Management Studies, 24(5), 503-521
Hirsh, W. & Jackson, C. (2004). Managing career in large organisations, London; The Work
Foundation
Kodz, J., Harper, H. & Dench, S. (2002). Worklife balance: Beyond rhetoric, Report 384,
Brighton, Institute of Employment Studies
Martin, R. L. & Osberg, S. (2007). Social entrepreneurship: The case for definition; Stanford
Social Review
Pattanayak, B. (2010). Human resource management (3rd ed.) New Delhi, PHI Learning
Private Limited
Schoof, U. (2006). Stimulating youth entrepreneurship: barriers and incentives to enterprise
start-ups by young people. International Labour Office, Geneva
13
CHAPTER TWO
HUMAN RESOURCE POLICIES AND PROCEDURES
LEARNING OBJECTIVES
At the end of this module, it is expected that students will be able to:
1. explain human resource (HR) policies and procedures;
2. understand the implementation of HR policies and procedures;
3. describe the coverage of HR policies;
4. explain the differences between HR policies and HR procedures; and
5. explain the required level of flexibility in the application of HR policies and procedures.
2.0 Introduction
Human Resources policies and procedures are very important to any organisation because with
clear policies and procedures, organisations will be able to take actions that are consistent and
fair to all stakeholders. Organisations will have problems if there are no laid down policies to
guide its actions. The aim of this chapter therefore is to explain what policies are and how there
are useful to the organisation. It starts with overview of human resource policies, and then
covers HR policy formulation, coverage of HR policies, HR policies implementation and a
sample of HR policy table of contents.. Also, the chapter did an overview of HR procedures,
formulation of HR procedures, HR procedure implementation and finally the adoption of flex-
ibility in HR policies and procedures application. Some samples of HR procedure were also
included to aid students’ understanding and application of the subject.
2.1 Overview of Human Resource Policies

Human Resource (HR) policies set out the approaches an organisation should adopt in dealing
with the various human resource practices. HR policies provide clear guidelines on how various
aspects of human resource management approaches could be applied. As noted by Armstrong
(2012), HR policies define the philosophies and values of the organisation and specify how
stakeholders should be treated. Therefore, HR policies are guiding principles upon which man-
agers should act when dealing with issues that concern HR management.
HR policies and procedures can help organisations to develop fair and consistent approaches
to managing and developing people and can protect against legal claims, for example, sex dis-
crimination. They can provide all employees with guidance about their own and the organisa-
tion's responsibilities and can prevent wasting time and resources.
Policies need to have purpose and should link into an overall organisation strategy. Small or-
ganisations will have a small selection of policies and procedures. As an organisation grows,
others need to be added. They should be clear and consistent, written in plain English and
communicated to all employees. They must be easily accessible and regularly reviewed to en-
sure they are fit for purpose.
14
But, no matter how well the policy is written and communicated, it is the implementation,
particularly by line managers, that is crucial in the policies and procedures being really effec-
tive.
2.2 HR Policy Formulation:

HR policies are meant to focus on the key functional areas of HR management in an organisa-
tion. In formulating HR policies, organisations should take the external factors into considera-
tion. Aside from the external factors, adequate consultations should take place with managers,
employees and trade unions. The final policy should be circulated and communicated with the
guidelines on how to implement the policies.
Armstrong (2012) identified the following 10 steps for formulating Human resource policies:
i) Gain understanding of the corporate culture and its shared values
ii) Analyse existing policies
iii) Analyse external factors with regards to employment legislations and codes of pro-
fessional practice.
iv) Assess the areas that new policies are required and where existing policies are in-
adequate.
v) Consult with Managers on their view about HR policies and areas of possible im-
provement.
vi) Seek the views of employees about the HR policies.
vii) Consult with the union representatives or officials
viii) Analyse the information obtained in steps 1 to 7 and prepare a draft policy
ix) Consult, discuss and agree policies with management and union representatives
x) Communicate the policies with the information on how to implement the policies.
HR policies and procedures gives organisations the opportunity to offer a fair and consistent
approach to managing their staff. Not all policies and procedures will be relevant to all organ-
isations, and some policies are required by law while others are to promote good practice. The
following categorisation indicates the range of possible policies which apply during the em-
ployment life cycle. Onijingin, (2008)
2.2.1 BEGINNING EMPLOYMENT
Recruitment and selection
Successful recruitment depends on finding people with the necessary skills, expertise and qual-
ifications to deliver organisational objectives and who have the ability to make a positive con-
tribution to the values and aims of the organisation.
15
Elements to consider when forming a recruitment policy:
1. job profile/person specification

2. dealing with job applications - whether to use hard copy and/or online forms; confi-
dentiality
3. recruitment advertising - discrimination pitfalls
4. selection techniques - training and validation
5. interviews
6. references
7. medical examinations
8. immigration
9. documentation
10. job analysis
11. equal opportunities monitoring
12. return on investment (ROI)/cost.
Induction
Designing an appropriate and cost-effective induction programme is a complex task. The pro-
gramme has to find a balance between providing all the information new employees need with-
out overwhelming or diverting them from integrating into the team. The length and nature of
the induction process will depend on the complexity of the job and the background of the new
employee.
Elements of an induction policy:
1. organisation information - background and structure; departments; products and ser-

vices; physical layout
2. terms and conditions - hours of work; holidays, travel policy
3. financial - pay; bonuses; overtime; pensions
4. culture and values - communication
5. rules and procedures - data protection; email and Internet usage; equal opportunities;
use of mobile phones
6. health and safety - first aid; smoking; environmental aspects
7. training
8. trade unions
9. welfare, benefits and facilities - alcohol and drugs; employee assistance programmes.
Organisations may find it useful to have checklists that cover the pre-employment period, the
first day, the first week, the first month and the end of the probationary period (if applicable)
to make sure everything has been explained.
2.2.2 DURING EMPLOYMENT
Employee relations look at the partnership between employee and employer, covering areas
such as communication, grievances and discipline. It is equally important in both union and
non-union situations. While employment law is closely linked with managing employee rela-
16
tions, a successful organisation will not just base its actions on compliance with the law - ex-
ploring the concept of the psychological contract, based on trust between employee and em-
ployer, may also be useful.
Policies and procedures that organisations may introduce according to Hutchinson, S. and
Purcell J. (2003) includes:
1. health and safety

2. disciplinary and grievance
3. maternity and paternity leave and pay
4. redundancy
5. absence
6. whistle blowing
7. performance management
8. recognition agreements (union and other)
9. time off and leave for trade union activities, holidays, secondment, volunteering,
eldercare, childcare, bereavement
10. communication and involvement, including employee voice
11. harassment and bullying.
Managing diversity
Diversity runs through all aspects of an organisation's policies. Managing and valuing diversity
is central to good people management and makes good business sense, so it also makes sense
for diversity to be integral within all policies. A diversity policy sets out the organisation's
vision and values in relation to diversity. It will often include the remit of polices, the processes
for taking action, who is responsible and the training available.
The basic premise is that people should be valued as individuals and for reasons related to
business interests, as well as for moral and social reasons. A more diverse workforce is likely
to offer a wider range of skills and experiences and greater flexibility to meet business chal-
lenges.
Elements of a diversity policy:
1. gender/sex equality
2. race equality
3. sexual orientation
4. religion
5. age
6. appearance/accent
7. formats and accessibility of policies and procedures.
Learning, training and development
Roles and responsibilities are constantly changing, so employees will need to continually re-
new and refresh their skills and competences through training. This can happen in the course
of normal working (on-the-job training) or away from the workplace (off-the-job training).
17
Elements of a learning and development policy:
1. the organisation's vision for learning and development;

2. opportunities available, including secondment, career breaks, courses, coaching, men-
toring;
3. who to ask to get authorisation for training;
4. support given for learning opportunities;
5. development reviews and personal development plans;
6. payment of professional fees;
7. training available for 'peripheral' workers ie contractors, temporary staff; and
8. record-keeping and administration.
9. continuing professional development and personal development allowances (if these
are not part of the employee benefits statement)
10. follow-up actions and transfer of learning to work.
Rewards
Effective reward practices and procedures can underpin activities in recruitment, retention,
turnover and engagement. Effective implementation and communication are essential for initi-
atives to succeed. Reward policies should be clear and simple so that employees know what is
expected of them and what they can expect to receive in return.
Elements of a reward policy:
1. the organisation's vision for reward, including market rates, extra responsibility allow-
ances
2. how jobs are graded or evaluated
3. pensions/additional voluntary contributions
4. permanent health insurance/critical illness cover
5. bonuses and incentive pay
6. benefits and non-cash recognition
7. company cars
8. sick pay
9. pay reviews
10. equal pay.
Complementary policies
Other policies that organisations may want to consider in relation to employment include:
1. a mission or values statement

2. parental leave
3. work-life balance/family-friendly work practices
4. disability
5. well-being and 'wellness'
6. green/sustainable development
7. the employment of relatives/friends
8. conflict of interest, including personal relationships
9. second jobs
18
10. confidentiality
11. bad weather/climate conditions
12. relocation
13. suggestion schemes.
2.2.3 ENDING EMPLOYMENT
There are many reasons why employment ceases, from voluntary resignation to dismissal or
redundancy.
Areas to consider for ending employment include:
1. dismissal
2. redundancy
3. voluntary resignation
4. retirement - retirement age; pre-retirement courses; phased retirement options
5. end of a short-term contract
6. end of a probationary period
7. death in service.
2.3 Implementation of HR Policies

It will be a waste of resources (effort, time and money) if policies formulated are not imple-
mented fairly and consistently. The line managers are responsible for the implementation of
HR policies. While the HR specialists provide guidelines on the implementation, it is the line
managers that make decisions about its people. Purcell, et al., (2003) as cited in Armstrong
(2012) argue that it is the line managers that bring policies to life. Therefore, HR should com-
municate and interpret the policies, convince line managers of the necessity of these policies,
and provide training and support that will aid managers in the policy implementation.
2.4 Coverage of HR Policies Human Resource policies can be expressed in a formal way as
overall statements of the organisational values or in specific areas of the organization.
Overall HR Policy: According to Armstrong (2012), HR policy defines how the organisation
fulfils its social/(economic) responsibilities for its employees and sets out its attitudes toward
them. It expresses its values or beliefs about how people should be treated.
Among the challenges faced by those that formulate HR policies are how they can pursue busi-
ness-led policies or policies that focus on business success and fulfil their obligations to em-
ployees on issues of equity, consideration, quality of working life, and working conditions.
Armstrong (2012), Obisi (2014) opine that the values expressed in an overall statement of HR
policies may explicitly or implicitly refer to the following concepts:
• Equity: This involves treating people fairly and justly by protecting individuals from
any unfair decisions made by their managers, providing equal opportunities for em-
ployment and promotion, and operating a compensation system that is equitable.
19
• Consideration: This entails taking into account individual circumstances when making
decisions which affect the prospects, security or self-respect of employees.
• Quality of working life: This aims at improving the quality of working life so as to
increase motivation and improve results.
• Working conditions: Providing healthy, safe and pleasant working conditions for the
employees.
Specific HR policy areas: Aside from the overall statement of HR policies, the most common
areas covered by specific HR policies include age and employment, HIV/AIDS, bullying, dis-
cipline, use of emails and the internet during working hours, employee development, employee
relations, health and safety, diversity management, promotion, sexual harassment, drug/sub-
stance abuse, reward, redundancy, work-life balance, and grievances. The policies will express
these in specific terms on how management and employees will deal with issues in the organ-
isation. For example, how would the company approach the employment of people living with
HIV/AIDS; the expression of disapproval of sexual harassment and what constitutes sexual
harassment and other forms of discriminations.
It should be stated that in setting policies in these specific areas, organisations should note that
they are subject to both external and internal pressures and moral implications that act as con-
straints on the extent to which high standards and best practices are disregarded. For instance,
organisation must set their policies in line with the national legislations and conventions in
these specific areas.
2.4.1 SAMPLE OF HR POLICY TABLE OF CONTENTS
CONTENTS
PAGE
1. Career Management System…………………………………....xx
2. Promotion Management System………………………………..xxx
3. Training Management Philosophy……………………………...xxx
4. Foreign Travel Allowance…………………………………..…. xxx
5. Private Education Philosophy…………………………………..xxx
6. Performance Management System……………………….…..... xxx
7. Recruitment……………………………………………………. xxx
8. Manpower Planning…………………………………………… xxx
9. Probation and Confirmation of Appointment………………….. xxx
10. Compensation and Employee Benefit Administration……..….. xxx
11. Staff Loans and Advances………………………………….….. xxx
12. Employee Medical Scheme…………………………………..… xxx
13. Leave………………………………………………….…….….. xxx
14. Employee Discipline………………………………………….... xxx
20
15. Separation………………………………………………………. xxx
16. Exit Management ……………………………………………….xxx
17. Terminal Benefits……………………………………………….xxx
18. Employee Grievance Procedure……………………………..… xxx
19. Staff Transfer………………………………………………...… xxx
20. Policies on Miscellaneous Items……………………………..... xxx
21. Staff Records and Files……………………………………...… xxx
22. General Behaviour……………………………………….……. xxx
23. Attendance and Punctuality………………………………........ xxx
24. Overtime……………………………………………...………... xxx
25. Public Holiday / Weekend Allowance…………………………. xxx
26. Bulletin Board………………………………………………….. xxx
27. Drugs and Alcohol Abuse………………………………….…. xxx
28. Fire and Safety………………………………………..……….. xxx
29. Change of Personal Status…………………………………… xxx
30. Confidential Information……………………………………….. xxx
31. Private Misconduct………………………………………….…. xxx
32. Unauthorised Testimonials………………………………..….. xxx
33. Canvassing, Soliciting or Selling……………………………... xxx
34. Borrowing and Lending Money……………………………..… xxx
35. Working Hours…………………………………………….……. xxx
36. Whistle Blowing Policy……………………………………………xxx
2.5 Overview of HR Procedure

HR procedures set out ways in which certain actions concerning people should be carried out
by the management or individual managers (Armstrong, 2012). In other words, HR procedures
constitute a formal approach of dealing with specific matters of policy and practice. Unlike HR
policies, that serve as guidelines on HR practices, that do not specify the steps that should be
taken in dealing with particular situations, HR procedures state what must be done and detail
how it should be done. It is advisable to have the key HR procedures written down to ensure
that HR policies are applied consistently and in line with both legal requirements and ethical
considerations.
A major advantage of codified and well publicised HR procedure is that every employee knows
what steps to take when handling certain significant and possibly re-occurring HRM issues.
HR procedures cover capability procedures, disciplinary procedures, grievance procedures and
redundancy procedures.
2.6 Formulation of HR Procedures

In formulating or developing HR procedures, it is important to carry out adequate consultation
with employees, trade unions or workers’ representatives. Everyone should be briefed on how
the procedures operate and it is advisable that such procedures be published in the employee
handbook or in a separate manual of procedures.
21
2.7 Implementation of HR Procedures
The implementation of HR procedure in most instances falls within the purview of the line
managers. Therefore, line managers may require special training on how to apply the proce-
dures while HR department provides guidance whenever it is needed. It is the responsibility of
the HR department/manager to ensure that implementation guidelines set for HR procedures
are followed religiously. In implementing disciplinary procedure for example, Armstrong
(2012) specified the following stages: First issue informal warning, then formal warning, fur-
ther disciplinary action, summary dismissal, and appeal.
2.8 Flexibility in HR Policies and Procedures Application

Flexibility entails the ease with which a system or component could be adjusted for use in an
environment or circumstances other than those for which it was specifically designed. Flexible
organisation is structured in an organic and adaptive fashion rather than as a rigid bureaucracy.
In as much as policies and procedures are standardised, it should be flexible enough to allow
organisations to swiftly adjust according to the changes in labour market and fluctuating nature
of the society without compromising ethical consideration and legal provisions.
Since an organisation’s policies are means to an end and not an end in themselves, flexibility
should be incorporated into the documentation/application with phrases such as, ‘whenever
possible’, ‘under certain conditions’ and ‘whenever feasible’, among others.
22
2.9 SAMPLE PROCEDURE OF HR AND ADMIN PROCESSES
Recruitment
Need to recruit identified by the HOD
Completion of Manpower requisi-

tion form by HOD
Approval by MD
Recruitment Consultant/Head Sourcing & short listing of ap-

Hunter plications
Data Bank
Interview/Shortlist Invitations for test/interviews
Interviews/pre-employment medical test.

(Yes or No)
Letters of Appointments, employment forms

& induction
23
Appraisal Procedure
One-on-one quarterly review of Soft copies of appraisal A reminder mail is

Setting of SMART objectives (i.e.
objectives (for the purpose of form to be e-mailed to sent to all managers
KPIs) to Associates by HOD at
coaching and feedback). To be Managers the first working 2 weeks after the
the beginning of the financial
documented. day of the appraisal month appraisal form is
year.
(annual appraisal) sent.
Completed and signed

(appraise & appraiser)
Identification of training needs, merit
version of the instruments
increase, promotion and others deci-
must be sent back to the
sions are made using the appraisal
HR department either
form.
hard or scanned copy on
or before the last working
day of the appraisal
month.
Returned instruments are filed in as-

sociates’ personal files for record pur-
poses
24
Training & Development
Identification of training needs by HOD (this must have

been done in the appraisal form)
Capacity develop-
Collation and drawing up of training
ment officer to
plan for local and overseas course by
check if associates
HR dept. with inputs from HOD.
have not gone on
similar training
nominated for.
Plan implementation subject to ap-

proval and availability of fund
Trained associates to make a presenta-

tion on how the programme will impact
their performance on arrival
Evaluation of training effectiveness after 3 months

of course attendance.
25
Procedure for Staff Discipline
First written warning- where an em-

Reprimand (verbal or written) 2nd written warning – an employee
ployee is guilty of a misconduct of seri-
– this is for a breach in com- who has a subsisting 1st warning and
ous nature, a query is issued by the
pany’s rule or procedure con- is guilty of another misconduct, shall
HOD. If not satisfy with the response,
sidered not very grievous. after investigation, be issued an-
the HOD adds his comment and pass to
other written warning.
the HRM who reviews the case and is-
sue the warning.
Termination – an associate can be termi-

nated on grounds of gross misconduct or
Suspension – an employee may be sus-
any other reasons which are inimical to the
pended while investigation into an al-
interest of the company.
leged misconduct/anti-value is going
on. Also, it can be an outcome of the first
query.
Summary dismissal – an associate who is guilty of

act of grievous misconduct may be summarily dis-
missed. None existence of previous written warnings
does not shield an employee from summary dismis-
sal.
26
Procedure for Investigating Grievous Offence/Anti-value
The disciplinary committee convene

A Disciplinary Committee to be set meetings to gather information. Err-
up by the mgt Committee to inves- ing associate(s) will be invited for the
tigate any act of impropriety. Ulti- purpose of fair hearing. The commit-
matum is given to the committee tee makes available evidence of mis-
for the submission of their report. conduct for defence by the associate.
The Committee sends its report

along with recommendations to
the management.
Decision making by the man-

agement based on the report
and recommendation of the
disciplinary committee.
27
Procedure for staff Confirmation
Reference letters are sent to previous employer, educational

institution on assumption of the associate. Also, guarantors
are invited/visited to authenticate claims on the form.
Probation Report Form to be sent to the associates

HOD, the first working day of the last probationary
month (i.e. the sixth month)
Completed form is sent to HR on or before the last work-

ing day in the 3rd week of the six month.
Confirmation letter is issued to the associates based on satis-

factory response from previous employer, academic institu-
tion(s), and guarantor and out come of the probation report.
28
Procedure for Annual leave
Associates to apply for leave 3

Approved departmental an-
weeks before intended date of Completed annual leave form
nual leave roster for a new fi-
commencement. Leave forms and a copy of approved hando-
nancial year to be sent to HR
are domiciled in the HR depart- ver note to reach the HR dept. a
in the last month of the pre-
ment. week before commencement.
sent financial year by HOD.
Associate will be notified formally

of the status of their applica-
tion/leave allowance (amount due,
resumption date) 3 days to com-
mencement of their leave.
On the day of resumption associates

are to fill a re-entry form domiciled
in HR dept. while it will be sent to
associates outside the head office
via e-mail.
Unauthorised extension of leave

will go through the company’s dis-
ciplinary. procedure.
29
Handing Over
Employee to commence writing of handover note as soon as

he/she is requesting for application form with details of out-
standing, partially completed and completed project.
Handover note to be forwarded to HOD

a week before commencement of leave
for review.
HOD to hold a brief with the associate going on

leave and his reliever to sort out grey areas in
the handover note 4th day to the leave period.
The three parties are to sign-off on the hando-
ver note.
Signed handover note to be sent to HR 3 days before

commencement of leave. This will be used in determining
the approval and commencement of annual leave.
30
Staff Resignation
HR manager will have an Detailed and com-

Resignation letter is ad- HOD of the associate to hold
immediate brief with the prehensive hando-
dressed to the HR man- a brief with the staff on mo-
associates on issues both- ver to be forwarded
ager through the HOD dality of the handover note
ering on the resignation to the HOD 2 weeks
who makes his/her and attaches a new associate
(reasons and condition for before exit
comment before for- who start under-studying.
accepting the resignation).
warding same to HR.
Copies of certified hand- A meeting is scheduled by

HR to forward the Exiting staff to obtain clearance and
over (exiting staff, re- exit interview form from HR imme- HR a week before expiration
clearance form to of notice period where exit-
liever and HOD) note is diately after the presentation. These
given to HR, finance and finance as basis for are to be returned 3 days before ex-
ing and relieving associate
the relieving associate computing bene- makes presentation in the
iting.
presence of a top mgt staff.
fits
HR accepts resignation
formally and advises the
staff on when to come for
his benefits.
31
Interface with HMO
Service agreement to be Completed forms are

Selection of an presented by HMO for re- Selected HMO brings
sent back to HR for
HMO after demo view by company manage- enrolment forms to
from three or ment. Agreement to include be distributed to all onward dispatch to
more HMOs. terms of payment, condition staff by HR. the HMO.
for opting out of the agree-
ment e.t.c
HMO dispatches i.d cards to be

Staff complaints due to
HR representative put a used by staff at chosen medical
delay, lack of attention
call through to the HMO care provider under the care of
in the hospital to be
for immediate resolution the HMO.
channelled to HR associ-
of issue while the affected
ates immediately.
staff is still at the hospital.
HR puts a confirmation call

through to the affected associate
to ascertain he/she has been ad-
equately attended to.
Staff Data Forms
New Staff Data Collection Form
New staff data collec- HR follows-up with new On submission of form

Completed form is filed
tion form is adminis- staff to ensure submission HR ensures form is
in new staff file.
tered alongside em- form on or before assump- properly filled.
ployment letter. tion date.
32
Staff Information Update form
Forms to be given to HOD of HOD ensures forms are

staff at the beginning of the Completed forms to be returned to the properly filled and for-
financial year. HOD, not later than a week after collec- ward forms to HR for fil-
tion for scrutiny. ing in individual staff file.
Correspondence
Inward
All inward bound correspond- Correspondences to be registered in the Front Office staff dispatches
ences to be received first, by the dispatch logbook by the front office correspondence to the ad-
Front Office staff staff dressee who acknowledges re-
ceipt on the dispatch log book.
Outward
All out going correspondence to be given to Registered mail(s) are dropped

the front office staff who registers them in Front office staff
in the mail box for delivery to
dispatch logbook various destinations. tracks the mails to en-
sure they reach desig-
nated destination.
33
2.10 Summary
The chapter made attempt to explain human resource policies and procedures. It discussed the
wide areas of policy and procedure formulation and implementation, the coverage of human
resource policies and highlighted flexibility in HR policies and procedure application. It could
be concluded that the chapter has demonstrated that policies and procedure are vital in organi-
sations and a good knowledge of human resource policies and procedures are crucial for to-
day’s human resource practitioners.
Review Questions
1. Demonstrate your understanding of steps to be taken when formulating human re-
source policies
2. You have just been appointed the HR manager in a new company, explain to the
managing director why it is important for the company to have human resource
policies and procedures
3. How would you ensure effective implementation of HR policies and procedures?
4. Describe the coverage of HR policies
5. Is HR policy same as HR procedure?
6. Discuss your understanding of flexibility in the application of HR policies and pro-
cedures.
7. Demontrate your understanding of performance management process flow.
References
Obisi, C. (2015). Anatomy of personnel management. Lagos; Princeton Publishing
Onijingin, K. (2008) Human resource policies and procedures: Tools for employee engage-
ment in financial institutions, Master in Business Administration Thesis, Obafemi
Awolowo University, Ile Ife.
34
CHAPTER THREE
COMPENSATION AND BENEFIT MANAGEMENT
LEARNING OBJECTIVES
This chapter will help expose students to the knowledge and understanding of the following:
1. Compensation policies;
2. Determination of compensation and benefits;
3. Operations of pension scheme, employee compensation scheme and PAYE manage-
ment;
4. The concepts executive compensation; and
5. Salary structure.
3.0 Introduction
Compensation and benefits are important and complex issues in any organisation. It encom-
passes the totality of what an employee receives in exchange for his/her services . Compensa-
tion management remains very important as there is no other matter that brings conflict in
organisations more than compensation and benefit issues. In view of the importance of this
topical issue, this chapter aims to discuss the relevance of proper management of compensation
and benefit to both the organisation and the employees.The chapter starts by giving an overview
of the concept of compensation and benefits. It covers compensation policy, determination of
compensation and benefits, payroll management, elements of compensation and benefits, pen-
sion scheme, PAYE management, employee compensation scheme, financial and non-financial
incentives. Other areas covered include guaranteed and variable pay, overtime pay, executive
compensation, expatriate compensation, employee stock option and salary structure. To further
aid students’ understanding and application of these concepts, some templates and practical
illustrations have been included.
3.1 Overview of Compensation and Benefits

Compensation management and reward management are used interchangeably by human re-
source professionals. Compensation management remains important and complex issue in hu-
man resource management. As noted by Fajana (2000), compensation management is a con-
tractual phenomenon. Employees’ compensation encompasses the totality of what employees
receive in return for their labour. It includes financial and non-financial rewards that determine
how well he lives in the society.Compensation management remains important to any em-
ployee as there is hardly any matter that leads to strain in labour management relations or lead
to industrial action more than compensation and reward related issues.
35
3.2 Compensation Policy
This is a set of formal rules and guidelines that an organisation put in place to reward its em-
ployees. The policy helps to eliminate misunderstanding between employees and management
about their right and obligations in the workplace. Fajana (2000) opined that in establishing
compensation policies, employers consider the following critical issues:
• Salary secrecy versus openness
• Wage leadership
• Wage followership
• Industry average wages
• The extent to which salary surveys (external relativity) will be adopted over job evalu-
ation or internal hierarchy of jobs
• Salaries as investments or costs
The goal of every positive wage policy according to Atiomo (2000); Obisi (2015) is aimed at;
• Offering competitive and fair salaries,
• Sustain employees’ efforts,
• Reward individual performance,
• Spotlight those ready for promotion,
• Help in budgeting and forecasting.
Compensation policy should meet the basic needs of an employee and conform to the three
parameters of external equity, internal equity and individual equity.
3.3 Determination of Compensation and Benefits

Determination of compensation which is the process of deciding on the level of pay for jobs or
people (Armstrong, 2012) has two aims; to be externally competitive so as to attract, engage
or retain the employees needed by the organisation, and to be internally equitable such that
rates of pay accurately depicts the relativities among jobs.
There are several factors to be considered in determining compensation or in designing any

compensation plan. Among them are:
• Legal requirements/Government regulations: Government makes laws that specify
the minimum wage that employers must pay to their employees. There are other laws
that specify various monetary and non-monetary benefits that must be enjoyed by em-
ployees.
• Organisations’ ability to pay: An organisation’s ability to pay is a major consideration

in the wage determination process. The resourcefulness of the organisation, which is
dependent on the economic condition, is a major factor in the sustainability of such
36
organisation. The organisation should be able to sustain the payment of compensation
package it agreed to pay to its employees.
• Competitive strategy: The organisation should deploy a total compensation package
(basic pay, allowances, cash and non-cash benefits and incentives) that will encourage
the required employees’ behaviour which will in turn will help the firm in achieving
competitive strategy.
• Other factors that affect the size of compensation to be paid by organisation to its em-
ployees include; the labour market situation, productivity level within the company,
union pressure, market wage rate and cost of living.
3.4 Payroll Management

This is the method of administering employees’ wages and salaries in an organisation. It in-
volves the calculation of wages and salaries tax and other deductions, administering pensions
and retirement benefits, and pay-out or disbursement of wages and salaries.
3.5 Elements of Compensation

Every compensation package is usually composed of three main elements: the basic pay, the
incentives and fringe benefits. Basic pay is offered to employee by employers for an em-
ployee’s capability and potential productivity. Benefits are offered to the workers based on
their membership to the organisation while incentives are offered in settlement for specific
identified performances by individual workers or teams in the organisation.
3.6 Pension Scheme

Pension according to Anyim (2014) is benefit paid to an employee on retirement or after at-
taining statutory required age. It makes employees financially independent at old age and dur-
ing post-employment period. Pension could be viewed as a reward for loyalty and long services
to an employer and is a form of deferred remuneration package. With pension, a retiree enjoys
comfortable life after service and equally experiences the standard of living enjoyed while in
active service. In Nigeria and in line with the Pension Reform Act 2014 which repealed Pension
Reform Act No. 2, 2004, pension scheme is contributory in the sense that both the employee
and the employer contribute into the fund, a minimum of 8% and 10% of employee’s total
emolument respectively.
In addition to the specified rate of contribution as stated above, every employer is required to
maintain a group life insurance policy of each employee for a minimum of three times the
annual total emolument of the employee. Where an employee dies, his/her entitlement under
the life insurance policy shall be paid into the Retirement Savings Account (RSA) of the de-
ceased. Employees are meant to open RSA with any licensed Pension Funds Administrator
(PFA) of their choice and notify their employers of the PFA chosen with the Personal Identifi-
cation Number (PIN). Where an employee fails to open an RSA within 6 months of employ-
ment, the employer shall open a nominal RSA for such employee for the purpose of remittance
of pension contributions.
37
The revised Pension Reform Act (PRA) makes it mandatory for each employee to have a Will;
in case of death inte-state the use of next of kin (NOK) is not a guarantee to dependants in
accessing the death benefit.
If an employee retires or is disengaged from employment, the employee may withdraw an
amount not exceeding 25% of the balance in the RSA after 4 months of retirement or stoppage
of employment and where employee does not secure another job. This is subject to PENCOM
approval.
3.7 PAYE Management

This is the acronym for “Pay As You Earn”. It is a means by which personal income tax is
collected from employees’ salaries and wages. It is deducted at source by the employer as
provided by S81 of personal Income Tax Act CAP p8 LFN 2011. Remittance of PAYE falls
due on the 10th day of every month that follows the month of deduction. The remittance of
PAYE (minimum of 1% of gross salary and maximum of 24%) is accompanied by the com-
prehensive list of employees from which the tax deductions were made.
In line with the residency rule, PAYE is remitted to the tax authorities of the State of employ-
ees’ residence and not the state where the employee works. It means therefore that, if an em-
ployee works in Ikoyi, Lagos State but lives in Ota, Ogun State, his/her employer will remit
the PAYE so deducted to Ogun State Board of Internal Revenue.
3.8 Employee Compensation Scheme

The Employee Compensation Act (ECA) 2010 is an important piece of legislation enacted to
provide for employees who are injured, disabled, or those that died in the course of their em-
ployment. The ECA covers all employers and employees in both public and private sector of
the economy except for members of the Armed Forces of the Federal Republic of Nigeria. The
ECA established the employee compensation scheme, which is a social security/welfare
scheme that provides adequate and timely compensation for employees that suffer from occu-
pational injuries or occupational diseases or sustain injuries arising from accidents at the work-
place or in the course of employment.
The source of the fund for the scheme includes employers’ assessment and contributions. All
employers in Nigeria are expected to contribute to the fund which is also expected to be in-
vested in line with the provision of ECA. The Act provides that every employer shall within
the first two years of the commencement of the Act; make a minimum monthly contribution of
1% of the total monthly payroll into the fund. After the first 2 years, the NSITF Board is em-
powered to “… assess employers for such sum in such manner, form, and procedure as the
Board may from time to time determine for the due administration of this Act”
Part II of the Act provides the procedures for making claims. Part of the procedure for making
claims is the employees’ notification of injury to the employer. Section 2(4) states that in any
case of injury or disabling occupational disease to an employee, or in the case of death, the
38
dependant shall within 14 days of the occurrence or receipt of the information of the occur-
rence, inform the employer by giving information about the disease or injury to a manager,
supervisor or first aid attendant, agent in charge of the work where the injury occurred or any
other appropriate representative of the employer. The information shall include:
1. The name of the employee
2. The time and place of the occurrence,
3. The nature and cause of the disease or death.
Part IV of the Act is concerned with the scale of compensation. It provides for the various types
of compensation that are available to an employee in case of injury or compensation payable
to the deceased employee’s dependant in case of death.
3.9 Financial Incentive and Non-Financial Incentives

Financial incentives are financial or monetary rewards paid to workers whose performance
exceeds the predetermined standards. While non-financial incentives are those incentives that
are non-monetary or financial based such as recognition based awards or what can be termed
in-kind rewards. Examples are employee recognitions, gift certificates, special events etc.
3.10 Guaranteed Pay

This is one of the components of the total compensation. Guaranteed pay is a standard pay
amount determined and established for each job. It is guaranteed pay because it is a fixed mon-
etary reward paid to an employee by an employer that is not determined by the level of perfor-
mance. This means that whether an employee meets his/her performance target or not; such
employee will receive that component of his salary. It is also regarded as the base-pay which
is the amount of pay that constitutes the rate for the job. Its level varies from one employee to
the other depending on the employee’s skill, qualification, expertise and experience.
3.11 Variable pay

This is a compensation package that is determined based on the level of performance or result
achieved out of the total target set. Variable pay is a non-fixed reward paid to employees by
employers that is based on discretion, performance or the results achieved. It is usually a com-
plementary compensation package that enhances the attractiveness or otherwise of the base
pay. In some instances, it could be higher in rate compare to the base pay. Some jobs design
the compensation package in a manner that the percentage of the base and variable is equal.
Some jobs by nature of their demands and requirements thrive better with high variable and
low base pays. Such roles like marketing and relationship management are in this category.
3.12 Overtime Pay

Overtime means the amount of time an employee works beyond normal working hours. Over-
time pay therefore is the pay an employee receives for working beyond normal working hours.
The Labour Act, defined overtime, as hours which an employee is required to work in excess
of the normal hours fixed by mutual agreement, by collective bargaining, or by an industrial
39
wages board. The Act does not state the method used for calculating overtime pay but the
practice is to calculate on an hourly rate.
Every worker who is required to work for any period in excess of the work hours fixed by
agreement is entitled to overtime pay. Overtime pay rates can cause workers to work longer
hours than they would at a flat hourly rate. Overtime laws, approach toward overtime and hours
of work vary significantly from country to country and among different industrial sectors.
3.13 Executive Compensation

Company executives play important roles in the profitability, performance and survival of the
organisation. Executives can be induced to be more effective and efficient if well remunerated.
Most organisations therefore put considerable thought into how to remunerate and reward the
executives. Executive compensation is designed in such a way that it provides financial and
psychological reliefs to the executives so that such an executive would be able to contribute to
the organisation’s growth and survival.
Executive compensation comes in three forms; Executive salary, executive incentives and ex-
ecutive benefits. Besides paying executives attractive salary, executives enjoy some perfor-
mance incentives such as cash bonuses, deferred bonuses, stock options etc. Also, executive
benefits are far richer and better than those of other employees and can come in form of better
medical care, well-furnished houses with domestic helps, paid overseas vacation among others.
3.14 Expatriate Compensation

Detail discussion on this will be seen on the chapter that deals with expatriate management.
3.15 Employee Stock Option

This is a form of incentive plan used by organisation in recognition of employees’ contribution
towards high level of corporate profitability. Under the employee stock option plan, part of the
gains of increased profitability is transferred into stock account for the employees. The main
objective is to increase employees’ sense of commitment and loyalty to the organisation as part
of the owners.
3.16Salary Structure
Salary or pay structure consists of pay ranges, brackets or scale that are attached to each grade,
band, or level in a graded structure. Armstrong (2012) states that, pay structures are defined by
the number of grades they contain which could be narrow- or broad-graded structure, the span
or width of the salary ranges attached to each grade. Salary structure is the hierarchy of jobs or
roles with pay ranges or rates attached.
In constructing a salary structure, the following guiding principles should be adhered to. Salary
structure should;
1. Be appropriate to the culture, characteristics and needs of the organisation and its em-
ployees
40
2. Facilitate the management of relativities and the achievement of equity, fairness, con-
sistency and transparency in managing pay
3. Be flexible enough to adapt to pressures arising from market rate changes and skill
shortages
4. Provide scope for rewarding performance, contribution and increases in skill and com-
petence.
5. Clarify reward, lateral development and career opportunities.
6. Be constructed logically and clearly so that the basis upon which they operate can read-
ily be communicated to employees
7. Enable the organisation to exercise control over the implementation of pay policies and
budgets.
3.16.1 Key steps in the development of a pay structure:

i. Job analysis
ii. Job documentation
iii. Development of a job worth hierarchy,
iv. Labour market data collection and analysis, and
v. Establishment of pay rates and/or ranges.
i. Job Analysis – this involves collecting and evaluating relevant information about jobs.
Any data collected should clarify the nature of the work being performed (principal or
essential tasks, duties and responsibilities), the level of the work being performed, the
extent and types of knowledge, skill, mental and physical effort and requirements, and
responsibility required for the work being performed.
There are five primary sources of data for the collection of job information:
questionnaires, interviews, logs and diaries, direct observation and work plans. All of
these methods have advantages and disadvantages and the organisation must
choose the method that will provide comprehensive data with administrative efficien-
cy and cost-effectiveness.
ii. Job Documentation – there is the need for a formalized way to document job contents.
In most organisations, a job description is the means used to accomplish this effort.
Job documentation is used to evaluate job content, provide objective criteria for mak-
ing pay comparisons, ensure that jobs are classified according to content as opposed
to individual personalities, effectively communicate the job duties to both supervisors
and employees, and help the organisation defend itself against charges of discrimina-
tion.
41
Who should write job descriptions? That will depend on the resources available to
the organisation, but they should always be reviewed by line management.
iii. Development of a Job-Worth Hierarchy – a job-worth hierarchy is the result of job

evaluation, the overall process of comparing jobs. There are 6 major methods of com-
paring jobs in order to develop the job worth hierarchy. The first three methods are
“whole-job” evaluations and are non-quantitative in nature. These include ranking,
classification and slotting. The second three are “factor” evaluation and are quantitative
in nature. These include point factor, factor comparison, and scored questionnaires.
iv. Labour Market Data Collection and Analysis – before an organisation begins the
process of collecting labour market data, it must first define its relevant labour market.
This may include:
a. Similar organisations in the labour market.
b. All employers in the labour market.
c. Similar organisations in the regional or national market.
d. And/or all employers in the regional or national market.
The goal of labour market data collection is to find data from employers with whom the
organisation competes for employees.
v. Establishment of Pay Ranges and/or Rates – in order to establish a pay
structure, an organisation needs to set rates of pay for the jobs in the job hierarchy.
Before doing this, an organisation needs to ask and answer the following questions:
i. How should the organisations pay level relate to the external market?
ii. Should the organisation be a pay leader, match the market or pay less than the mar-
ket?
iii. What is the organisation willing to pay for: job content, seniority, performance, skills,
cost of labour, or some combination of all of these?
iv. How does the organisation pay its employees: based on a single rate structure (all em-
ployees in the same job receive the same pay), based on seniority, based on merit, based
on productivity (piece work), based on new skills (skill-based pay), or based on some
combination of these factors?
v. Are short terms or long term incentives provided?
vi. What steps does the organisation need to take to ensure that pay is administered in a
manner free of bias and discrimination?
42
3.17 Summary
The chapter discussed the various components of compensation and benefits. The chapter
started by giving an overview of the concept of compensation and benefits. It covered compen-
sation policy, determination of compensation and benefits, payroll management, elements of
compensation and benefits, pension scheme, PAYE management, employee compensation
scheme, financial and non-financial incentives.
Other areas covered include guaranteed and variable pay, overtime pay, executive compensa-
tion, expatriate compensation, employee stock option and salary structure. For organisations to
retain its crop of best employees, management of compensation and benefits should be given
all the seriousness it deserves. A good understanding and sound knowledge of compensation
and benefit issues is important to any organisation that aspires to survive in this era of global
competition
Review Questions
1. Explain the steps in the development of a pay structure
2. Highlight the provisions of Pension Reformed Act 2014
3. Discuss the differences between guaranteed pay and variable pay
4. Payroll management is the sole responsibility of human resource department. Discuss.
5. As a compensation manager, what factors would you consider in determining compen-

sation in your organisation?
6. Why do you think compensation policy is needed in organisations?
References
Anyim, F. C. (2014). Industrial relations in Nigeria in 21st century, Lagos, Daily Labour
Publishers
Atiomo, A. (2000). Practical human resource management. Lagos, Malthouse Press Limited
Fajana, S. (2000). Functioning of the Nigerian labour market, Lagos: Labofin and
Company
Obisi, C. (2015). Anatomy of personnel management. Lagos; Princeton Publishing
43
CHAPTER 4
EXIT MANAGEMENT
LEARNING OBJECTIVES
Upon the completion of the study of this chapter, you should be able to:
1. explain what is involved in managing staff exit;

2. highlight the various ways an employment contract or relationship could be terminated;
3. discuss the formal processes of in exit management; and
4. explain the benefits of exiting staff in a professional manner
4.0 Introduction
Exit management is a management system put in place to ensure smooth withdrawal of em-
ployee service either voluntarily or involuntarily. It is an established process agreed upon
with a view to ensuring employment contracts are brought to an end in a professional manner.
It is also refer to as offboarding process. It applies to employees who resigned (voluntary exit)
and those whose appointment are being terminated by the company (involuntary exit). When
an employee’s appointment is terminated, there are several considerations an organisation
needs to make to cleanly end the relationship.
In most cases where there is no case of breach of contract, a tort committed or a criminal case
against the employee, exit management may be viewed as a guide for the leaving employee
and a career booster. Using a sound career recommendation, the exiting employee has availed
the opportunity to leave with the goodwill of the company and if possible may someday return
to the company with higher professional worth.
, Exit management process helps organisations to prepare for the eventual disengagement of
an employee from employment and makes role for some other person to take up immediately
the exiting employee leaves. Very importantly, also, the organisation must protect itself from
unnecessary exposure to lawsuits that may arise from wrongful dismissal or termination. As
noted by Leonard (2016), “once an employee is on-boarded, it is increasingly difficult, or im-
possibly fraught with liability, to terminate the employment of that employee.” Thus, managing
employee exit should be treated as seriously and importantly as managing the staffing process.
4.1 Exit Management Policy

Because of the serious nature of staff exit and the many possibilities for litigations when it is
poorly managed, it is expedient that organisations put in place clear-cut policy guidelines on
staff exit. The policy ensures that all matters relating to the employee and the organisation are
suitably finalized when the employee’s employment comes to an end. The policy must cover
all areas of due diligence that is to be carried out right from when the employee gives notice of
disengagement or when the employer decides to disengage the employee to the point of final
exit.
44
Exit management policy is, therefore, a series of rules that are contained in the portfolio of
managing the release of employees from an organisation. This varies from one company to
another. The Labour Act 1990 (Cap 198) stipulates minimum requirements for easing employ-
ees out of service, just as it requires employees to exhibit some restraints while exiting them-
selves from employment - The Labour Act 1990 (Cap 198), Section 11 (1).
The policy helps the organisation to look into the reason why employees leave the organisation,
the problem areas and improve personnel practices. This entails the filing of an exit question-
naire by the employee. Confidentiality must be guaranteed. Reports and transactions with the
employee must not be divulged nor made public. The policy must be clear, sincere, consistent,
and unbiased to make it reliable and efficient. Holistically, exit management is aimed at initi-
ating a win-win situation between the exiting worker and the management.
4.2 Exit Modes

There are several ways that employees exit organisations. The most common methods are dis-
cussed below.
4.2.1 Retirement
The term retirement is generally understood to mean a deliberate decision to leave one’s job,
career, occupation, permanently usually due to age. It is the point at which a person ceases full-
time work, generally between the ages of 60 – 65, but increasingly earlier today due to firm’s
early retirement incentive plans - Dessler et al. (2000). In Nigeria, the official retirement age
is 60 years – or after 35 years in service, whichever comes first, but this applies mainly to the
public sector.
Retirement in the private sector, however, is premised on the skill and status of the employee.
Nonetheless, this statutory provision on retirement has greatly influenced retirement poli-
cies/practice in the private sector. According to the World Bank, the average retirement age
across the world (as applicable to the private sector) is put at 60.2 years.
Retirement can be categorized into two:
1. Age of Compulsory retirement refers to when an employee permanently ceases to

work upon reaching the mandatory age of retirement or has put in the mandatory 35
years in service – as applicable in the public sector in Nigeria. Retirement for most
employees is a bitter-sweet experience. For some, it is the culmination of their ca-
reers, a time when they can relax and enjoy the fruit of their labour without worrying
about the problems of work. But for others, retirement itself is a trauma, as the once-
busy employee tries to cope with suddenly being non-productive.
For many retirees, maintaining a sense of identity and self-worth without a full-time
job is the single most challenging experience. Interestingly today, most employers
are trying to assist their retirees to cope with this last stage of the career management
process. This will be discussed in subsequent paragraphs
45
2. Early, Premature, or Forced retirement, on the other hand, occurs when an em-
ployee or group of employees are asked to leave their jobs due to redundancy, re-
organisation, etc. Employers who, by necessity, are compelled to thin the herd of
highly paid, older employees often offer early retirement incentive packages that
tend to trade off an increased pension benefit or severance package in exchange for
an employee agreeing to voluntarily retire early.
Early retirement is typically offered to many employees before the company decides
to engage in a layoff or reduction in force (RIF). These early retirement offers often
target older employees because they are most likely to have the most generous pen-
sion benefits and highest compensation in the company
This internationally accepted practice is common in the oil and gas sector in Nige-
ria. In most cases, early retirement incentives are offered and paid retirees in a le-
gitimate fashion. Early retirement offers are essentially severance packages but per-
form the specific role of enticing the employee to terminate employment. The em-
ployer may offer it to attract employees to leave the business voluntarily rather than
undergo layoffs.
Pre-retirement Planning:
Retirement is a major change and should be prepared for. Therefore, retirement poli-
cies, according to Armstrong (2009), should specify:
(i) when people are due to retire;
(ii) the circumstances, if any, in which they can work on beyond their regular re-
tirement date;
(iii) the provision of pre-retirement training on such matters as finance, insurance,

state pension rights, health, working either for money or a voluntary organisa-
tion, and source of advice and help; and
(iv) the provision of advice to people about to retire
According to Dessler et al. (2000), the following are some measures organisations are
using to help their employees cope with retirement:
(i) Pre-retirement counseling aimed at enabling employees to have a smooth pas-
sage into retirement. This might take the form of outplacement counseling
(ii) Retirement education and planning firms provide services that assist upcoming
retirees with issues such as lifestyle goals, (including part-time or volunteer
work), financial planning, health, and relationship problems.
46
(iii) Preretirement workshops and seminars are organized to assist retirees to learn
useful skills in areas of investment.
4.2.2 Termination
Every employment relationship must have an end. When employees are no longer required, the
employment relationship may be severed. Dessler et al. (2000) define termination as the broad
term that encompasses permanent separation from the organisation for any reason. Fajana
(2006) observed that terminations are initiated by the employer with or without prejudice to
the employee. Termination is exclusively a management prerogative. Termination comes with
some elements of reward in accordance with what the worker may have contributed during his
stay in the organisation.
A worker whose employment has been terminated may have the privilege of collecting his
entitlements if he has served well. Termination is the final stage in the progressive discipline
process. This is the point at which the employee has shown, by his actions, his unwillingness
to comply with organisational rules and policies.
Whatever the cause, experts favour termination session or interview to hold where the HR
Manager is expected to describe the situation leading to the termination decision to the affected
employee in a calm and empathetic manner (Muller, 2009). Termination must be carried out in
line with the company laid down policy guidelines that are also in compliance with local laws
regulating the employment relationship. In practice, the employer is not duty-bound to state
reasons for termination. Termination can be voluntary or involuntary.
Involuntary Termination
‘For Cause’ Termination occurs when an employer disengages an employee on the grounds
of violations against the company’s policies, poor performance, or commission of any act con-
stituting serious misconduct, etc. It is termination initiated by the employer. The following
misdemeanour may necessitate termination for a cause:
1. Commission of a crime resulting in loss to the organisation such as theft,
fraud, embezzlement, etc., or any act that tarnishes, before the public,
the organisation’s image
2. Divulgence of proprietary information regarding the business or opera-

tions of the organisation to unauthorized persons
3. Failure to report to work or carry out assigned work over a significant
period
4. Gross negligence in the performance of duties as well as willful negli-

gence
5. Repeated willful refusal to perform assigned or delegated duties
47
‘Not for Cause’ or ‘No Fault’ Termination, on the other hand, occurs when an employee’s
disengagement is not because of any fault of his. Grounds for this form of termination are
necessitated by factors outside of the control of both the employer and the employee. Some of
the factors include the following:
1. Restructuring or reorganisation
2. Financial difficulties
3. Business downturn
4. Technological development
5. Plant obsolescence and relocation
6. Mergers and acquisition
Voluntary Termination: Resignation and work abandonment are the two most common ex-
amples of voluntary termination.
Resignation represents an employee’s decision to leave an organisation for better pay, career,
relocation, schooling, etc.
Work abandonment occurs when an employee fails to show up as expected at work on con-
secutive days without notifying their supervisor (no call, no show) or requesting time off. The
number of days an employee could miss work before it is considered resignation by job aban-
donment vary from one organisation to another, but it is usually three days. The employee's
failure to show up for work also includes a failure to communicate with his or her manager or
supervisor about the reason for missing work.
When an employee fails to show up for work, the first step is for the supervisor or manager to
try to reach the employee via phone, email, text, or by whatever means possible. Sometimes, a
rational reason for the absence is obtained. Sometimes an employee did not just understand all
their policy options. If no progress is made in this direction, the ‘runaway’ employee’s manager
or supervisor will then inform the HR department who in turn will carry out all necessary due
diligence to exit staff professionally.
Employers are however advised to spell out a policy in their employee handbook that states the
maximum number of days that should be missed before the absence is considered to be resig-
nation by job abandonment.
Whether voluntary or involuntary, it is important that terminations are conducted legally, with
sensitivity, and that the rights of employees and the organisation are upheld. (SHRM)
48
HR Role with Termination Activities:
Although the employee’s manager is directly responsible for the termination decision, how-
ever, HR must support lawful termination by providing coaching and counseling to the man-
ager as well as ensure compliance with the following;
i) Documentation of the situation in line with related laws
ii) Wages and compensation decisions in line with associated laws
iii) Creation of employee’s awareness in opportunities available to continue in the or-
gani-
station where possible
iv) Ensure that employee references are provided in line with organisational policy
4.2.3 Dismissal
Dismissal takes place when an employer terminates the employment of someone on the
grounds of grave misconduct. It is an involuntary termination of an employee’s employment.
Dismissal decision is the most drastic disciplinary step that can be taken against an employee
and one that must be handled with deliberate care. Specifically, the dismissal should be fair in
that sufficient cause exist for it. Thus, dismissal decision should be taken only after all reason-
able steps to rehabilitate or salvage the employee have been made to no avail. Contrary to
termination, a worker that is dismissed does not have access to his terminal benefit. However,
he/she may have access to his pension contribution.Dismissal can occur as a result of gross neg-
ligence, or any act of misconduct of such gravity that a staff member's continued employment
would be inimical to the smooth operation of the organisation.
Grounds for Dismissal
Dessler et al. (2002) identifies four grounds for possible dismissal as:
1. Unsatisfactory performance – refers to the persistent failure to perform assigned duties
or to meet the prescribed standard on the job
2. Misconduct – deliberate and willful violation of the employers’ rules (e.g., stealing,
insubordination, etc.)
3. Lack of qualification for the job - an employee’s incapability of doing the assigned
work even though the person is diligent
4. Changed requirements of (or elimination of) the job – the employee’s incapability of
doing the assigned work due to change in the nature of the job.
49
Other ground upon which an employee may be dismissed are proven cases of the following::
1. Falsification of records
2. Dishonesty
3. Fraud
4. Theft
5. Divulging of Bank's secret
6. Drunkenness/Drug Abuse/Gambling in company's premises
7. Conviction for criminal offence by legal process
8. Gross Negligence
9. Demanding and accepting gratification in cash or kind for company's service or
consideration.
10. Physical assault
11. Business diversion, i.e., passing company’s business to competitors, etc.
12. Immoral behaviour on bank's premises.
Armstrong (2009) cautioned that dismissals should be handled by the principle of natural jus-
tice, which should form the basis of a spelt out disciplinary procedure. The process must be
carefully managed so as to minimize, and as much as possible, eradicate lawsuits that may arise
due to wrongful dismissal.
Constructive dismissal is said to have occurred when an employer makes unilateral changes
in the employment contract that are unacceptable to the employee, even though the employee
has not been formally terminated. The most common changes that may constitute constructive
dismissal are; demotion, pay reduction, forced resignation, forced transfer, changes in job du-
ties and responsibilities, etc.
4.2.4 Redundancy
Redundancy takes place when the organisation is going through a downsizing exercise, when
structural changes are being made, following mergers and acquisitions, and when individual
jobs are no longer needed. (Armstrong, 2009).
According to Ranulph Fiennes, (2011), a role is considered to be redundant if the company is:
1. no longer going to be involved in a particular line of business
2. closing down altogether
3. or moving from the facility where the role is based
The Labour Act 1990 (Cap 198) considers redundancy as an involuntary and permanent loss
of employment caused by an excess of manpower. The Act stipulates necessary actions and
procedures that an employer must follow in the event of a declaration of a state of redundancy
to include;
I. notice to workers’ representative,
II. application of the principle of ‘last-in-first-out.’
50
III. calculation of redundancy payment
IV. role of the ministry of labour in enforcing redundancy payment
Redundancy also occurs when the organisation needs fewer people to carry out work either at
one location or across several locations. For instance, if a business used to operate at two sites
but will in future only occupy one, clearly there will be no need for as many staff. Succinctly,
therefore, if an organisation needs fewer employees to perform the essential tasks across the
whole business, redundancy will occur. If unfortunately, redundancy has to take place, it is
necessary to plan.
HR has the enormous responsibility of handling the redundancy itself. He must be prepared to
answer tough questions such as: Who must be laid off? How much notice will they be given?
What amount of severance pay, and how far the company will go to help the laid-off employees
find another job?
Allen Downs (2011) observed that these critical decisions have as much to do with the future
of the organisation as they do with the future of the laid-off employees, so they must be con-
sidered carefully.
Reducing the effect of redundancy on affected employees: Most organisations carry out the
following interventions as a means of assisting affected employees to cope with redundancy as
well as reduce its impact on the organisation:
(i) Planning: means taking all necessary steps to minimize compulsory redundancies
and providing enough notice in line with legal requirements
(ii) Voluntary redundancy: asking for volunteers –with suitable payoffs
(iii) Outplacement: helping redundant employees find new jobs – through job shops,
counseling, and outplacement consultants
4.2.5 Resignation
Resignation represents an employee’s decision to leave an organisation for better pay, career,
relocation, schooling, etc. and this could happen several times in one’s career. Although it is
disappointing to lose key people, resignations give companies the opportunity to plan to recruit
suitable replacements. More frequently though leaving an organisation is usually the employ-
ees’ choice; however, sometimes it might be the choice of the organisation. Either way, it is
essential for the process to be managed correctly and without rancour. In practice, most organ-
isations (mainly in Nigeria) often require resigning employees to give ‘notice period’ of be-
tween one to three months - depending on the employee’s cadre.
This requirement is usually often stated in the employment contract, employee handbook or
the company’s policy manual which compels the resigning employee to give ‘notice period’ or
payment in lieu – usually a month’s salary as may be applicable. However, an employer may
51
decide to provide pay in lieu of fulfilling the notice period when there are good reasons of
doing so, particularly in cases where the employee is no longer trusted to stay in the organisa-
tion.
This clause is not usually enforceable by both employees and employers in situations of a
breach. Since resignations signify an end to the employment relationship, it is only proper that
careful steps are put in place to manage it through and through. These steps will be discussed
hereunder. The Labour Act 1990, Section 11 (2) (a) (b) (c) (d) stipulates ways by which a
worker is expected to exit a company.
4.3 Exit Procedures

1 Exit Questionnaire: All exiting employees are expected to complete an Exit Ques-
tionnaire. The completed questionnaire is expected to be submitted to management be-
fore the exit interview. Information from this interview will be retained in a confidential
file, separate from other personnel records.
2 Exit Interviews: The exiting employee's supervisor does not participate in the exit
interview, but the employee and supervisor are encouraged to discuss any matter(s) of
interest and clarify any issue pending. Information collected during the Exit Interview
should be classified.
Employees are encouraged to be candid and to ask any question(s) they may have re-
garding their separation. The exit interview is intended to give the employee a chance
to speak freely concerning reasons why his/her exit is imminent. Exit interview data is
then compiled, summarized, and kept for management use.
It is important to note that most organisations conduct exit interviews only on grounds
of voluntary exit. That is when the decision to quit is from the employee.
3 Other Out-Processing Procedures: At this stage, the employee and his immediate
supervisor are expected to discuss the surrender of company’s properties/items in their
custody such as; locks, keys, ID card, computers, etc. Also, HR is expected to supervise
the exiting staff’s handover of his job functions - including all uncompleted assign-
ments. His present financial situation with the company like outstanding leave, wages
owed, severance package by the unit (informal) are discussed. After this is done, a final
clearance document is signed off by the responsible manager and submitted to the HR
department.
(EXAMPLE OF A CHECKLIST FOR EXITING EMPLOYEE)

Redundancy: It is the duty of an employer to provide work, just as it is the obligation of an
employee to obey a lawful command. In the situation, whereby an employer is constrained by
forces beyond ability to provide work, hence, income and salary fail to flow; the employer
may exit several workers from the employment through constructive downsizing.
52
Resignation: An employee may exit an organisation on his own will. This may be because of
better opportunities that are available to the employee elsewhere. An employee may voluntarily
resign to take up employment elsewhere.
Completion of fixed term employment: Some employees are employed for a fixed term.
Their employment may be so that they may complete a project for an organisation such as
building a cafeteria. In another instance, a worker may be employed on a contract basis, this
may be because of the primary role-player being absent from work for one reason or another.
That is, a contract staff perhaps employed for a month to man the post of a staff who has been
reported ill or injured.
Death: When a death occurs, contractual bonds are automatically broken. Exiting the work-
place is either a matter of choice for the deceased worker or an administrative prerogative of
the employer. Employee Compensation Act (ECA) 2014 stipulates the process of compensa-
tion to the next of kin of a deceased worker.
Processes Involved in Staff Exit:

- Notification of intention to leave the organisation
- Preliminary meeting with Head of the department
- Meeting with the exit Manager
- Assessing of severance package
- Second meeting with Head of the department to surrender company property.
- The exit of the Employee - Documentation and archiving of employee records.
How to Conduct an Effective Exit Interview

Many organisations conduct a final exit interview with employees who are leaving. An exit
interview is a conversation with departing employees to learn their opinion of the employer,
managers, policies, and other aspects of employment with the organisation and reason(s) for
leaving (Dessler et al., 2002). The HR department usually conducts these. The common as-
sumption is that, since the employee is going, he/she will be candid and outspoken.
- Supervisors should be encouraging and understanding.
- The process should be seen as a part of the employee management process, even as it
is the end.
- The manager of the process should exhibit adequate listening skills to elicit vital infor-
mation from the interview.
- The exiting employee should not be expected to have the same reason for leaving as
those that have gone before him.
53
- The Interviewer should be conscious of the effect of stereotyping repeated exercise
could have on him. Employee’s real reasons for leaving a job are quite different to why
human resources (HR) thinks they do (Faragher, 2008)
- Document the interview in retrievable form. Don’t rely on your memory. Create an
environment conducive to the employee's comfort in the exit interview.
- Be mindful of what the employee says about the workplace, other employees, the work
process, management, and the company product.
- Assure the employee who is leaving your organisation that the feedback he or she pro-
vides will be treated with strict confidentiality and utilised by the organisation to im-
prove the employment conditions.
- Ask only important questions. You want to know what caused the employee to look for
another job in the first place, that is the essence of the interview.
Use of Exit Interviews:

i. Encouraging the transfer of knowledge, technical know-how and experience from the
departing employee to a replacement.
ii. Provides a yardstick to measuring sexual harassment, workplace violence, and discrim-
ination issues and measuring the success of diversity initiatives if and when they do
occur.
iii. Elicits employees' perception of the company’s organisation culture, plant or office
facilities and making improvements.
iv. Information gathered in an exit interview could be used to retain critical employees
and improve the workplace.
v. The exit interview enables not only an improved understanding of the reasons why
employees leave, but provides opportunities for effective communication in several
additional areas as well (Rachna & Snigdha, 2014).
vi. When exit interviews are conducted properly, they provide useful information about
how to make your organisation a better place. It also makes you know what your
competitors are doing.
To ensure you get the maximum benefit from your exit interviews, there are three key stages
to follow:
(a) Be prepared for anything. Prepare the employee; prepare the interviewer and the interview
environment.
54
(b) Be Objective. Maintain an objective stands and downplay emotions.
(c) Be appreciative. Always end the conversation appreciating what the employee has con
tributed. Wish them well in their future endeavour.
AN EXAMPLE OF EXIT INTERVIEW FORM

(To be completed in respect of all staff resigning from the company)
1. (a) Name:
(b) I/D No:
(c) Grade:
2. Depart/Branch:
(a) Date joined:
(b) Grade on Employment:
3. Working Experience with Dates:
(a) Before joining the organisation:

(i)
(ii)
(iii)
(b) In the Organisation:

(i)
(ii)
(iii)
4. (a) Which period of your service with the organization do you consider as the
most
successful and challenging? Please elaborate.
(i)
(ii)
(iii)
(b) Which period of your service do you consider as the least successful? Please
elaborate
(i)
55
(ii)
(iii)
5. (a) Does your answer to item 4 have any relationship with your decision to leave?
(b) If not, what are your major reasons for wanting to leave?
6. (a) Are you leaving to join another financial institution?
(b) If not, what do you plan to do?
7. If you are still within the industry what incentive is your new job offering you? Tick
whichever is appropriate.
Higher Salary Higher Status
Higher Responsibility Career Prospects
Higher Fringe Benefits Location of the job
8. What do you think the organization could have done to retain your services?
What other reasons do you have for resigning? Could it be:

• Your Department/Branch Management pattern?
• Personality conflicts in your Department/Branch?
• Policy (in which area)?
9. Other (please state):-
10. Do you see yourself re-applying for employment into the organisation in future?
11. What further suggestions would you recommend to the organisation?
56
Name of Resigning Staff:
Signature: Date:
Name of Interviewing Officer:
Signature: Date:
4.4 Exit Documentation:

After the exit of an employee from a company, the records are archived for immediate or future
use. These records may be archived for as long as two years or more as may be stipulated in
the organisation’s policy. A record of exiting worker is a useful tool for change agents and
researchers who may want to shake up the work arrangement for better results.
4.5 Communication of Exit Decision:

An Employee that has decided to leave an organisation has an obligation to inform his employer
about his planned exit in writing. In the letter, he must state the time of his planned exit, which
must align with the labour laws and employment policy guiding resignation or make payment
to the employer in lieu of notice.
The Employer, on the other hand, must inform an employee in writing of its plan to retire,
terminate, or dismiss him/her. Copies of the letter and the profile of the employee are to be
archived after disengagement.
4.6 Contractual Considerations:

The Labour Act 1990 allows either party the right to terminate the employment contract pro-
vided the statutory terms and conditions are complied with.
According to Nicolle and Farley (2015), the following are some considerations for employers
when terminating employment contracts:
1. Dismissing fairly/lawfully: The best starting point is to establish the employee’s statu-
tory and contractual rights. A fair dismissal requires an employer to have a potentially
reasonable reason to dismiss in line with the employment contract.
2. Settling financial obligations: All financial entitlements due to the employee must be
resolved in line with the employment contract and agreed upon by both parties. The
financial terms of a settlement agreement are usually the most important consideration.
3. Business protection: An employer should remind an outgoing employee of any post-

termination restrictive covenants and post-termination confidentiality provisions in
their employment contract and will usually want to ensure that such covenants are re-
affirmed.
57
4. Return of company’s property: An employer will also want to ensure that employees
return all company property when they leave.
4.7 Summary
If mishandled, terminating an employee’s contract can result in significant damage to the or-
ganisation’s reputation, which may lead to loss of business. Therefore, employers will usually
want to give careful consideration at the outset to the legal position and the best strategy to
adopt, to try to minimize costs and the risk of damage to the business.
Full compliance with the exit management policy will protect the organisation from possible
lawsuits as well as guarantee the attainment of greater employee job satisfaction and the em-
ployer’s value proposition. There is no better way to find out about your organisation’s perfor-
mance better than streaming the views of exiting employees.
Review Questions
1. In what way, can an employment contract or relationship be terminated?
2. Discuss the formal processes involved in exit management
3. What are the benefits of exiting staff in a professional manner?
4. Explain what is involved in managing staff exit
References
Lefkowitz, J. & Katz, M. (2006). Validity of exit interviews. Personnel Psychology. 445-455
Rachna N. & Snigdha N. (2014). Exit interview – A strategic tool to measure attrition.
International Journal of Research in Business Management. ISSN. 2(5), 2347-4572.
Nicolle R., & Farley H. (2015) Considerations for Employers when Terminating Employment
Contracts. Financierworldwide.com
Dessler et al. (2002). Human resource management in Canada, Canada, Pearson education,
Inc.
58
CHAPTER FIVE
ORGANISATIONAL DEVELOPMENT (OD)
LEARNING OBJECTIVES
The learning objectives for this chapter include:

1. understanding the concept of organisational development;
2. describe organisational design;
3. know the assumptions of organisational development;
4. understand change management; and
5. explain the role of HR in organisational development.
5.0 Introduction
Organisations are established to achieve competitiveness and remain sustainable. Organisation
as an open system encounters challenges that may lead to its collapse and subsequent extinc-
tion. A lot of enterprise are not functioning optimally due to poor employee motivation, use
of out-dated /obsolete technology, lack of requisite skills by employees, weak communication
channel and or inadequate facilities.
To remain efficient and sustainable, such organisations would need to innovate or re-organise
their ways of doing things by embarking on organisational development (OD). The aim of this
chapter is to explore what organisational development entails. It starts with an overview of
organisational development. It covers the assumptions of organisational development, organi-
sational design, elements of organisational design, organisational structure, organisational be-
haviour, and structural and behavioural enablers. Other issues discussed include formal and
informal organisational architectures, change management, and the role of human resource in
organisational development.
5.1 Overview of Organisational Development

Organisational development is a deliberate, holistic and planned intervention, input or step-
ping-in to remove obstacles and bottlenecks coming in the way of the effective running of an
organisation with a focus on the people, tools, processes, and sub-systems of work for the at-
tainment of organisational effectiveness (Obisi, 2000).
Organisational development helps organisations do away with their old and ineffective meth-
ods of doing things and introduce contemporary and effective methods to achieve overall or-
ganisational effectiveness with an emphasis on the entire workforce, processes, and systems of
work. Pattanayak (2010) explained Organisational development as a planned change brought
about through the people processes in the organisation, with the help of the consultant and the
use of the theory of applied behavioural science. An organisational development consultant
may be a resident employee, an occasional external consultant, or a regular external consultant
(Fajana, 2000).
59
From the foregoing, it could be observed that the definition of organisational development has
the following attributes:
1. It is a planned or deliberate change,
2. It is carried out throughout the organisation,
3. Organisational development intervention is done with the assistance of a consultant,
4. Organisational development intervention requires knowledge of behavioural sci-
ence.
5.1.1 Characteristics of Organisational Development

Organisational development interventions are long-term, planned, and sustained efforts. It aims
at achieving two primary goals. (1) To improve the functioning of individuals, teams, and the
whole organisation. (2) To teach organisation members how to improve their functioning.
The following are some of the characteristics of OD as stated by Pattanayak (2010):
(i) Organisational development focuses on culture and processes,
(ii) Organisational development ensures collaboration between superiors and subordi-

nates in managing the organisational culture and processes,
(iii) It encourages team formation and effectiveness,
(iv) Organisational development encourages employees’ participation, empowerment

and involvement in decision making process,
(v) Organisational development focuses on every subsystem in the organisation,
(vi) The role of the consultants is critical to organisational development interventions

as he acts as a catalyst for the change process,
(vii) Organisational Development makes use of an action research approach to improve

and enhance the success of the organisation.
5.2 Assumptions and Values of Organisational Development
A set of values, assumptions, and beliefs constitute an integral part of organisational develop-
ment and shapes the goals and methods of organisational development interventions (Patta-
nayak, 2010). Assumptions are beliefs that individual regard as valuable and correct. Usually,
such assumptions are taken for granted and are rarely examined or questioned. Organisational
development values, as Pattanayak (2010) argues tend to be humanistic, optimistic, and dem-
ocratic.
60
Humanistic values state the importance of the individual, respects the whole person, and treat
people with respect and dignity. Optimistic values indicate that people are good and that the
tools for making progress include being rational, reasonable, and show of goodwill while dem-
ocratic values advocate the sanctity of the individual, the right of freedom of people from ar-
bitrary misuse of power, fair and equitable treatment of all, and the need for justice through the
rule of law and due process.
Armstrong (2012, 157) posits that the assumptions and values of organisational development
are as follows:
• When individuals operate in an environment that is both supportive and challeng-

ing, they are driven by the need for personal growth and development.
• The work team, especially at the informal level has excellent significance for feel-
ings of satisfaction, and the dynamics of such teams have a powerful effect on the
behaviour of their members
• When organisations learn how to diagnose their strengths and weaknesses, they tend
to be more effective.
• Since managers do not often know what is wrong, they require the assistance of
outside “Process Consultants” who should ensure that decision making remains in
the hands of the clients.
5.3 Organisational Design

Organisational design involves the processes, structure, and roadmap put in place for an organ-
isation to achieve its goals and objectives (Obisi, 2000). Organisation design, according to
Armstrong (2012) is a process of deciding how organisations are structured and function. Meth-
ods of organisation design could focus on a single department or function, several departments,
or the whole business. Human resource experts should be able to contribute to the processes of
organisational design because of their knowledge of the factors that affect organisational be-
haviour and also because they are in a position to take an overall view of the goals and objec-
tives of the organisation and how the business should be organised.
Globalisation has brought about changes in the way organisations function. Therefore, the ap-
proaches to organisational design in today’s world of work should consider such changes that
have affected the way organisations function. As noted by Armstrong (2012), organisational
designers should note that the use of teamwork and other forms of flexible work arrangement
is on the rise, that distinctions between departments and units are fast disappearing because of
the increased rate of integration within the organisation and the influence of information tech-
nology on the way work is carried out.
61
5.3.1 Aims of Organisational Design
The broad aim of organisational design is to optimise the arrangements for conducting the af-
fairs of the business to achieve the best fit between the structure of the organisation and the
reason for establishing the business. The following are the specific aims of Organisational De-
sign, as stated by Armstrong (2012, 146):
i. Clarify the overall purposes of the organisation or the functional units.
ii. Define how work should be organised to achieve the set purpose.
iii. To ensure that the structure is appropriate for the business, the activities it carries
out and its work systems.
iv. To specify the essential activities involved in carrying out the work.
v. To group the various activities in such a way as to avoid unnecessary overlap or

duplication.
vi. Integrate activities and achieve cooperative effort and teamwork.
vii. Create flexibility so that arrangement can quickly adapt to new conditions and chal-
lenges.
viii. Provide appropriate channels for the rapid communication of information
ix. Establish the role and functions of each organisational and functional unit.
x. Clearly define individual roles, accountabilities, and authorities.
xi. Take account of individual needs and aspirations.
xii. Reconcile the potential inconsistency between individual needs and organisational
goals and purposes.
xiii. Design jobs to make the best use of the skills and capabilities of the jobholders.
xiv. Plan and implement organisational development activities to ensure that the various
processes operate in a manner that contributes to organisational effectiveness.
xv. Set up teams and project groups as required to be responsible for specific pro-
cessing, development, professional and administrative activities or for the conduct
of projects.
62
5.4 Elements of Organisational Design
Organisational design involves six key elements that reflect ways by which tasks are divided,
grouped, or coordinated. These are:
i. Specialisation:
ii. Departmentalisation: This is the deliberate division of jobs, and it explains how
jobs are grouped into sub-units. Jobs could be grouped by the functions they
perform, based on product lines, on a geographical or territorial basis, process,
and the basis of commonality of customers.
iii. Chain of command:
iv. Span of control:
v. Formalization and
vi. Centralization or decentralization.
5.4.1 Organisational Structure: A structure could be described as a design, an arrangement,

or a configuration of an object or system. Obisi (2003) posits that the organisational structure
is the existing composition or design through which an organisation works towards the attain-
ment of both individual and organisational goals and objectives. organisational structure is the
formal system of task and reporting relationship that determines how employees use resources
to achieve organisational goals (Jones, 1995). It means, therefore, that for an organisation to
achieve its set goals, such an organisation should have its structures right.
Analysis of organisational structure covers the way activities are grouped, the number of levels
in the hierarchy, the extent to which authority is decentralized to divisions or business units,
and the relationship that exists between different units, divisions or functions (Armstrong,
2012).
At least four factors determine the structure of an organisation: the environment, types of strat-
egy, technology, and human resources. These are dynamic factors that are subject to changes
in the forms and types of organisations. The changes have been embraced by terms like organ-
isational restructuring, organisational transformation, and re-engineering. In designing an or-
ganisational structure, attention should be paid to such issues as the logic of the way activities
are grouped and decentralized, the span of control overlaps between functions and activities,
neglect of certain activities, the existence of unnecessary or redundant departments, units, func-
tions, and layers of management.
63
Organisations have evolved from the tall, rigid, bureaucratic structure of Weber and Fayol’s
prescription to more flexible, flat, or delayed adaptations with the definite aim of re-engineer-
ing the process of work in favour of speed, timeliness, and efficiency. There is greater emphasis
on task and team building than on functions, geography, product, or market as criteria for com-
posing organisational structures. The main features of modern structures are integration of
roles, computer-based information system, task reconstruction, cross-functional teams, and less
hierarchy, i.e. flat rather than tall organisations. There are no absolute standards against which
professionals can judge organisational structure. Therefore, there is no right way of organising
structures, and there are equally no absolute principles that govern the choice of organisational
structure (Armstrong, 2006).
Also, due to globalisation, virtual corporations or organisations, that is, modular or network
organisations, which sharply contrast brick and mortal structure, have emerged. The core of a
virtual organisation is a small group of executives whose job is to oversee and coordinate rela-
tionships with other organisations that manufacture, distribute and perform other crucial func-
tions for the organisation. Control and coordination are by a system of computer networks –
inter and intranets. A complete virtual organisation lacks physical plants and permanent work-
force, unlike non-virtual organisations which have the permanent workforce, physical plant,
buildings, offices, and so forth.
These new models of organisation structuring have led to downsizing or rightsizing of the
workforce – which in the understanding of labour means job loss. It is however, both a system
of skill obsolescence and opportunity for acquisition of new skills along with entrepreneurial
opportunities as downsized outfits outsourced functions and operations. It has also been said
that a viable source of dissatisfaction among employees in transforming organisations is the
threat of unemployment and increased workloads from organisational downsizings (Jones,
George & Hill, 2000).
5.4.2 Organisational Behaviour: The study of organisational behaviour (OB) helps to clarify
the factors that affect how managers manage. Organisational behaviour (OB) deals with the
way people act or react in any form of organisation. According to Griffin and Moorhead (2010),
organisational behaviour attempts to describe the complex human context of organisations and
to define the opportunities, problems, challenges, and the issues associated with that realm.
Organisational behaviour deals with the analysis of the nature of groups, the development of
structures between and within groups, and the process of implementation and managing
change.
Organisational behaviour, therefore, aims at predicting and controlling individual or group be-
haviour in an attempt to achieve organisational goals. Managers use their knowledge of organ-
isational behaviour to have an understanding of themselves in terms of needs, motives, behav-
iour, and feelings that will assist them to improve their decision-making capabilities, control
stress, communicate better and understand how career dynamics unfold (Griffin & Moorhead,
2010). A good understanding of the knowledge of organisational behaviour is necessary for the
64
success of organisational development interventions in organisations, and it offers managers
many different insights into how and why things happen the way they do.
5.4.3 Structural and Behavioural Enablers: Change enablers can either be structural or be-
havioural. Behavioural enablers are more potent than the structural enablers because behav-
iours are personalised and demonstrated and are actual evidence for the change.
Structural enablers are imposed on the organisations by their leaders, with the aim of guiding
or facilitating members to act in specific ways. They could be in the form of information tech-
nology, organisation and or process architecture. Information technology (IT) architecture in-
cludes the type of data employees need for decision making, IT hardware, and software appli-
cations, the production and operational technology adopted. Organisation architecture could be
management systems, workforce enablement and support systems, knowledge, skills and abil-
ities development, and organisation structure.
While process architecture involves business processes, the physical environment of the work-
place, administrative policies, and rules. They are usually formalised, documented, and out-
ward-facing; that is, they are designed to make others accountable for upholding them. For
example, changes in IT platforms, processes, or organisation structure may have the intention
of making workers more collaborative, open, and innovative in their work behaviour.
Behavioural enablers are what is demonstrated and observed in practice (Jones & Recardo,
2013). Leadership style, communication, team building, self-sacrifice, and putting others first
in support of the changes will act as reinforcement for the change. Leadership behaviour mod-
eling is the most direct and powerful enabler in the shaping of any new culture. This is because
employees watch their leaders’ commitment to change process, on issues that involve taking
tough decisions, removal of obstacles to change initiative when it encounters resistance or pres-
sure from the old culture. Individuals usually model their behaviour on those of their superiors
since their compensation; status and security depend on it.
5.5 Formal and Informal Organisations:

Formal organisations are generally defined by an organisational chart and job descriptions. The
official reporting relationships are known to every manager. Alongside the formal organisation
is an informal organisation, which is a set of evolving relationships and patterns of human
interaction within an organisation that are not officially prescribed.
An informal organisation is the set of growing relationships and patterns of human interaction
that exist within an organisation which is not officially presented. An informal organisation
exists within a formal organisation and consists of informal relationships created by organisa-
tional members at every level in the organisation. An informal organisation is not officially
designated by managers, but since managers cannot avoid these informal relationships, they
must learn to cope with them.
65
The informal organisation has the following characteristics; evolving , grassroots, dynamic and
responsive, excellent at motivation, requires insider knowledge to be seen, treats people as
individuals and driven by trust and sense of reciprocity - informal organization by Wikipedia.
5.6 Change Management

In any organisation, change is an on-going phenomenon at all times and is very important in
any organisational development process (Pattanayak, 2010). It is a regular feature of business
life as a result of the continuous need for an increase in performance and enhancement of return
on investment for stakeholders. Organisations make minor or major adjustments in reaction to
or in anticipation of a change in both its internal and external environments. Changes could be
as a result of the deliberate alteration in business strategy (planned or proactive change) or as
a reaction to occurrences within and outside the business environment (reactive change).
The primary area that creates pressures to change in an organisation involves people, technol-
ogy, information processing and communication, and competition. Planned change requires a
systematic process of movement from one condition to another (Griffin & Moorhead, 2010).
In managing change, the approach can be organised into five major activities as noted by
Longer, Spreitzer, and Lawler (2001).
Motivating change:
• Creating readiness for change
• Overcoming resistance to change
Creating a vision:
• Describing the core ideology
• Constructing the envisioned future
Developing potential support:

• Assessing change agent power
• Identifying key stakeholders
Effective
• Influencing stakeholders
change man-
agement
Managing the transition:
• Activity planning
• Commitment planning
• Management structure
Sustaining momentum:
• Providing resources for change
• Building a support system for
change agents
• Developing own competencies
• Reinforcing new behaviour
66
Source: Conger et al. (2001) as cited in Pattanayak (2010)
How to lead and manage change can be better understood from Lewin’s change model.
Old state Unfreeze Change Refreeze New state
Lewin’s change process model
Unfreeze: This process involves getting stakeholders to be aware of the need for change. This
stage of the process is used to create awareness and understanding of the importance of the
planned change and how it will affect their jobs.
Change: This entails the movement from the old ways of doing things to a new way. This
could be through the installation of new machines, technology, implementing a new form of
Performance management, and any other thing that can alter the existing relationships, process,
or activities.
Refreezing: This stage makes the new behaviour to be permanent through continuous moni-
toring, feedback, and adjustments
5.7 The Role of HR in Organisational Development:

Human resource managers have roles to play in handling the human resource or employment
relations issues that usually accompany organisational development interventions. Among the
roles are:
1. Training and development: Training is very crucial in organisational development in-
terventions. This is critical as employees must be equipped with the right knowledge,
skills, and attitudes with which to cope and manage the organisational development
interventions and necessary for success in an employee’s job.
2. Attraction and retention of capable or the right employees to avoid gaps in achieving
the objectives of the change.
3. Creating HR policies and practices that will stimulate, maintain, and sustain appropriate
behavioural patterns and direct such toward the achievement of a given performance
objective.
4. HR should create a strategy to adequately keep the union and employees informed of
the state of the organisation’s affairs, through constant and regular consultation with
the stakeholders.
67
5. Human resource managers should build and enhance the trust and morale of employees
by creating a free flow of information to convince the employees that the decisions and
actions taken by management are justified and reasonable.
6. Succession planning: HR should play the role of creating a good succession plan to
identify and develop personnel that can take on higher responsibilities in the future.
5.8 Summary
The chapter explored the concept of organisational development. It started with an over-
view of organisational development. It covered various issues that bother on organisational
development such as the assumptions of organisational development, organisational de-
sign, elements of organisational design, organisational structure, organisational behaviour,
and structural and behavioural enablers.
Other issues discussed include formal and informal organisational architectures, change
management, and the role of human resource manager in organisational development. From
the discussions, it could be safe to argue that to remain efficient and sustainable, organisa-
tions would need to innovate or re-organize their ways of doing things by embarking on
organisational development (OD).
Review Questions
1. Explain your understanding of the concept of organisational development (OD)
2. Why would an organisation engage in organisational design?
3. Discuss the characteristics of organisational development
4. What is change management?
5. What roles are there for an HR manager in organisational development?
6. Highlight the key elements of organisational design
References
London, Kogan Page

Fajana, S. (2000). Functioning of the Nigerian labour market, Lagos: Labofin and
68
Company
Jones, G. R. (1995). Organisational theory: text and cases; Reading; MA: Addison Wesley
Jones, G. R., George, J. M. & Hill, C.W.L. (2000). Contemporary management (2nd ed.).
New York, Mcgraw Hill Company
Moorhead, G. & Griffin, R. W. (2010). Organisational behaviour: Managing people and

organisations (9th ed.) South Western, Centage Learning
Obisi, C. (2003). Organisational behaviour: Concepts and applications. Lagos,

Malthouse Press Limited
Pattanayak, B. (2010). Human resource management (3rd ed.). New Delhi, PHI Learning
Private Limited
69
CHAPTER SIX
PERFORMANCE MANAGEMENT
LEARNING OBJECTIVES
At the end of this chapter, students are expected to know and understand the following:
i) The concept of performance management in the workplace;
ii) Performance objective setting;
iii) Explain performance management at different levels;
iv) Explain the process of performance management automation;
v) Describe the components of performance measurement and evaluation;
vi) Appreciate performance management tools, particularly the balanced scorecard.
6.0 Introduction
Organisations embark on performance management for the purpose of improving their perfor-
mance. In most instances, performance management is viewed as being a focus on individual
employees. However, it has been established that performance management also applies to
teams and the entire organisation as the individual performance forms the group performance,
and the performances of the groups flow into organisational results. This chapter aims at ex-
ploring the concept of performance management.
The chapter is divided into five sub-topics. It starts by giving an overview of performance
management, followed by a performance objective setting, various variables under perfor-
mance measurement and evaluation. The chapter also covers performance management tool
and concludes with a discussion on performance management automation.
6.0.1 The Concept of Performance Management

Performance management is both a strategic and integrated approach to delivering successful
results in organisations by improving the performance and developing the capabilities of teams
and individuals (Armstrong and Baron, 2002).
Armstrong (2012) defined performance management as a systematic process for improving the
individual, team, and organisational performance. It is a means of getting better results by un-
derstanding and managing performance within an agreed framework of planned goals, stand-
ards, and competency requirements. Processes exist for establishing a shared understanding
about what is to be achieved, and for managing and developing people in a way that increases
the probability that it will be achieved in the short and long term. It focuses people’s attention
on doing the right things by clarifying their goals. It is driven by line managers.
70
6.0.2 Aims of Performance Management
The overall aim of performance management is to establish a high-performance culture in
which individuals and teams take responsibility for continuous improvement of business pro-
cesses and their skills and contributions within a framework provided by effective leadership.
Specifically, performance management is about aligning individual objectives to organisational

objectives and ensuring that individuals uphold corporate core values. It enables expectations
to be defined and agreed upon in terms of role responsibilities and accountabilities (expected
to have) and behaviours (expected to be). The aim is to develop the capacity of people to meet
and exceed expectations and to achieve their full potentials to the benefit of themselves and the
organisation. Importantly, performance management is concerned with ensuring that the sup-
port and guidance people need to develop and improve are readily available.
6.0.3 Objectives of Performance Management:

a. Empowering, motivating, and rewarding employees for doing their best.
b. Focusing employee’s tasks on the right things and doing them right. Aligning every-
one’s individual goals to the goals of the organisation.
c. Proactively managing and resourcing performance against agreed accountabilities and

objectives.
d. The process and behaviours by which managers handle the performance of their people
to deliver a high – achieving organisation.
e. Maximizing the potential of individuals and teams to benefit themselves and the or-
ganisation, focusing on the achievement of their objectives.
6.0.4 Performance Management at Different Levels in the Organisation

Performance is managed at the corporate level, strategic business unit level, and individual
level. Performance management at the corporate level is the primary responsibility of top man-
agement who plan, organise, monitor, control activities, and provide leadership to achieve the
strategic goal for the benefits of stakeholders. Performance management at a business level,
according to Armstrong (2012) provides the medium for linking employee performance targets
to the factors crucial to the success of the business.
Performance management at the individual level is a means of achieving a better result by

understanding and managing performance within an agreed framework of planned goals, stand-
ards, and competency requirements.
71
6.0.5 Performance Management Cycle
There are specific performance processes that take place in the performance management cy-
cle. The processes managers engage in the cycle include; conclude performance and develop-
ment agreements, performance planning, personal development planning, manage performance
throughout the year, conduct performance reviews, and assess performance.
Performance Management Cycle
Role definition
Performance
planning
Performance
review Personal development
Performance planning
monitoring
72
Plan: Stakeholders agreed on objectives and competency requirements as expressed in role
profile; identify the required behaviours, produce projects expressed in performance agree-
ments for meeting objectives and improving performance. Prepare personal development plans
to enhance knowledge, skills, and competence and reinforce the desired behaviours.
Act: work and responsibilities required to accomplish objectives are carried out by reference
to the plans and in response to new demands.
Monitor: efforts are made to check the progress being made in achieving objectives and re-
sponding to new demands. Performance management is treated as a continuous process. That
is performance is managed all year round rather than the usual annual appraisal.
Review: This is the stocktaking stage where discussion of progress and achievements are held
in review meetings. The aim is to identify areas where corrective actions are needed to improve
performance. It is a basis for completing the cycle by continuing into the planning stage.
6.0.6 Performance Management Process

A Performance Management process includes the following actions.
73
a. Developing clear job descriptions and employee performance plans which includes
the key result areas (KRA') and performance indicators.
b. Selection of a right set of people by implementing an appropriate selection process.
c. Negotiating requirements and performance standards for measuring the outcome

and overall productivity against the predefined benchmarks.
d. Providing continuous coaching and feedback during the period of delivery of per-
formance.
e. Identifying the training and development needs by measuring the outcomes

achieved against the set standards and implementing effective development pro-
grams for improvement.
f. Holding quarterly performance development discussions and evaluating employee

performance based on performance plans.
g. Designing effective compensation and reward systems for recognizing those em-
ployees who excel in their jobs by achieving the set standards in accordance with
the performance plans or rather exceed the performance benchmarks.
h. Providing promotional/career development support and guidance to the employees.
i. Performing exit interviews for understanding the cause of employee discontentment

before their exit from an organisation.
6.1 Performance Objectives Setting

Objectives or goals describe what needs to be accomplished. It defines expectations in terms
of key results. These objectives are set at three levels: at the corporate, business units, and
individual levels.
6.1.1 Criteria for setting Targets:

Many organisations’ use “SMART” to summarize the criteria for setting objectives:
S = Specific. Must be clear, unambiguous, straightforward, understandable and challenging
M = Measurable: It must be quantitative or qualitative in terms of time, price, money

number, percentage, units etc.
A= Achievable: challenging but within reach of a competent and committed personnel.
R = Relevant: relevant to the objectives of the organisation so that the goal of the individual
74
is aligned to the corporate goals.
T = Time-bound – Must have a specific time frame for completion - an agreed timeline.
6.1.2 Types of Objectives

1. Work objectives: All works have built-in objectives that may be expressed as key result
areas in a work profile
2. Targets: these define the quantifiable results to be attained as measured in such terms
as outputs, income, sales, levels of service delivery and cost reduction
3. Tasks/Projects: objectives can be set for the completion of task or projects by a spec-
ified date.
Behavioural: Behavioural expectations are often set out generally in competency

frameworks, but they may also be defined individually. Competency framework may
deal with areas of behaviour associated with core values, for example, teamwork. Core
values themselves are the reflections of desirable and undesirable behaviour which can
help in planning and reviewing performance.
6.1.3 Performance Alignment with the Corporate Objectives - Cascading

A performance management process sets the platform for rewarding excellence by aligning
individual employee accomplishments with the organisation’s mission and objectives and mak-
ing the employee and the organisation understand the importance of a specific job in realizing
outcomes. By establishing clear performance expectations which include results, actions, and
behaviours, it helps the employee in understanding what exactly is expected out of their jobs
75
and setting of standards to assist in eliminating those jobs which are of no use any longer.
Through regular feedback and coaching, it provides an advantage of diagnosing the problems
at an early stage and taking corrective actions.
6.2 PERFORMANCE MEASUREMENT AND EVALUATION

A significant step in performance management is setting and agreeing on key performance
indicators (KPIs) by the individual employees and their supervisors. These are standards by
which performance are measured.
6.2.1 Performance Tracking

Collection of data and monitoring of performance program planning, designing, and selection
of indicators are vital components of a performance measurement system. However, these steps
are essentially meaningless if data is not collected against each of the indicators. Measuring
performance requires the timely and relevant collation and analysis of data. Data must be gath-
ered by set timeframes and must be accurate, comprehensive, and comparable. When analysing
data to get a meaningful picture of performance, comparisons must be considered.
This can be done either year by year or, where relevant, by using benchmarking or simple
comparisons of groups that did and did not receive outputs. Note, however, that there are risks
associated with benchmarking and comparisons. Such risks may relate to changes and lack of
control of external factors, which may also influence performance.
6.2.2 Performance Dialogue

This is a regular structured, face-to-face conversation between managers and their direct reports
about organisational performance. Enhancing performance dialogue can be a useful first step
toward improving performance management. As noted by Gibbs and Irons (2011), there are
various benefits associated with using performance dialogues as a starting point for change.
• Provides a forum for identifying improvements opportunities and stimulating quick-
action, leading to immediate results.
• Structured dialogues can signal a new way to work, in which innovative ideas are val-
ued.
Dialogues can generate “pull” for improvements to other performance management elements.
6.2.3 Performance Evaluation/Appraisal

Organisations are made up of people, and it is through these people that organisational goals
are achieved. Therefore, how well the individual perform will determine the overall perfor-
mance of the organisation. Performance of an individual is the contribution made by that indi-
vidual in meeting organisational objectives. According to Pattanayak (2010), people do not
learn unless they are given feedback on the results of their actions. It is therefore advised that
feedback should be given at regular intervals if learning is to take place. Such feedback should
include successes and failures and should identify actions that should follow.
76
Performance appraisal helps to remind or recall how well people are doing so that corrective
actions could be taken. Performance appraisals, as defined by Pattanayak (2010) are all those
procedures that are used to evaluate the personality, the performance, and the potentials of
employees. Performance appraisal is used for three cardinal purposes – remedial, maintenance,
and development. Performance appraisal needs to cover all three purposes with equal focus.
Performance appraisal could be formal or informal. Formal appraisal usually occurs on a for-
malised basis that involves an appraisee and appraiser in finding answers to performance re-
lated questions. On the other hand, informal performance appraisal is a continuous process of
feeding back the subordinates on how well they are performing their responsibilities in an or-
ganisation. The informal performance appraisal is usually conducted on a day-to-day basis. An
example is when a supervisor tells his subordinate that his work output meets standard or falls
below standard.
PERFORMANCE APPRAISAL PROCEDURE
77
Setting of SMART objectives One-on-one quarterly review Soft copies of appraisal form A reminder mail is
(i.e. KPIs) to Associates by of objectives (for the pur- to be e-mailed to Managers the sent to all managers 2
HOD at the beginning of the pose of coaching and feed- first working day of the ap- weeks after the ap-
financial year. back). To be documented. praisal month (annual appraisal form is sent.
praisal)
Completed and signed (ap-

praise & appraiser) version
Identification of training needs, merit
of the instruments must be
increase, promotion and others deci-
sent back to the HR depart-
sions are made using the appraisal
ment either hard or scanned
form.
copy on or before the last
working day of the appraisal
month.
Returned instruments are filed in associ-

ates’ personal files for record purposes
6.2.4 Performance Rating Scale

Most performance management schemes include some form of rating which is usually carried
out before, during, or after the performance review meeting. The rating indicates the quality of
performance or competence achieved or displayed by an employee by selecting the level on a
scale that most closely corresponds with the view of the assessor on how well the individual
has been doing. Rating scales can be defined alphabetically i.e. (a,b,c,d,e.), or numerically (
1,2,3,4,5). It should be categorized from the highest to the lowest (e.g., excellent, very good,
good, satisfactory and unsatisfactory, etc).
The use of rating achieves the following:

a. It makes sense to be able to express the performance of a staff against a framework
of reference rather than subjective assessment.
b. It is useful, to sum up concrete judgments about people indicating who is excep-

tional and who is underperforming
c. It is impossible to have performance and contribution pay without ratings
d. It conveys a clear message to people on how they are doing and can motivate them
to improve performance
6.2.5 Performance Reporting
78
The utility of performance information is limited if it is not communicated effectively and in-
tegrated back into the planning cycle. It is important to link performance measurement into the
broader management processes of an organisation.
Effective performance reporting has the following characteristics:

• clarify the relationship between planned performance and actual performance;
• provide a picture of overall performance (unbiased, balance, and complete) of organi-
sations, including how the business unit objectives link to organisational goals.
• identify assumptions, gaps, and variances; and
• present performance information clearly and concisely, in a user-friendly and timely
manner, and across a broad range of mediums
6.2.6 Performance Feedback and Remedial Actions
Performance feedback is defined by Pattanayak (2010) as a systematic collection and feedback
of performance data on an individual or group derived from a number of the stakeholders in
their performance. This gives an individual, people’s assessment of his/her performance and
hence knows how well they have done in terms of their performance targets. When feedbacks
are appropriately given to appraisees, it helps promote understanding, acceptance and will as-
sist them to change their behaviour in a positive way.
When employees get feedback, it is up to the supervisors and the employees to take remedial
actions to correct identified gaps between expected performance and actual performance. With
the feedback, employees would be able to know their areas of strength and weaknesses, the
competence they possess and therefore work out ways of remedying the differences identified.
6.2.7 Reward for performance

Rewarding excellent performance is just as important as managing, motivating, and monitoring
performance. Meaningful reward and recognition strategies can positively influence employee
attitudes and behaviour. You may wish to consider a range of financial and non-financial re-
wards to attract and retain quality employees.
Financial rewards: The minimum rates organisations are required to pay their employees are
typically set by State or National awards, through agreements or legislation. Often, awards will
include a classification structure that will dictate rates of pay for particular classes of work or
specific skill levels. Employers and employees cannot agree to lesser rates of pay than those
set by an award. However, an employer may decide to pay above award wages as an incentive
to employees or to reward performance. To attract the best employees to your business and
then retain them, you may need to consider paying competitive salaries, and that might include
offering above award wages.
79
Bonuses: Bonuses are often used as an ad hoc system of financial reward. They may be irreg-
ular and linked to particular performance measures, or they may occur at specific times such
as the end of the fiscal year or Christmas.
Non-financial rewards and recognition: Non-financial rewards may include recognition,

higher status, positive feedback, more responsibility, and greater participation. Recognition is
an important non-financial reward that is particularly valued by some employees. Having one's
efforts noticed and publicly acknowledged can be a great motivator and encourage employees
to stay with an employer.
6.2.8 Performance Results Calibration

Performance calibration, according to Caruso (2013) is a process in which managers come
together to discuss the performance of employees and achieve agreement on performance ap-
praisal ratings. It is the steps taken by managers to ensure that a consistent set of standards in
making performance rating are applied. The process ensures among others that; a fair and ob-
jective performance appraisal of past performance is created for each employee vis-à-vis the
other employees in similar role/job grades; that managers apply identical standards to all em-
ployees.
Performance calibration is an essential aspect of the performance management process. It as-

sists managers to deliver appraisal that is accurate, that ensures fair allocation of rewards and
assists organisations in the retention of high performing staff. Some of the benefits of perfor-
mance Calibration are;
i) Improvement in accuracy of performance rating
ii) Clarifies high performance standards
iii) Increases perception of fairness.
6.3 Performance Management Tool
6.3.1 Balanced Scorecard: The balanced scorecard developed by Kaplan and Norton in the
early 1990s, has been adopted, modified, and applied by various organisations worldwide. The
balanced scorecard (BSC) is a performance management tool used for translating an organisa-
tion’s vision into a set of performance indicators distributed among four perspectives: financial,
customer, internal business processes, and learning and growth. While some perspectives are
used to measure an organisation’s progress toward achieving its vision; other indicators are
utilised to evaluate the long-term drivers of success.
The balanced scorecard helps an organisation in monitoring both its current performance (fi-
nancial, customer satisfaction, and business process results) and its ability to learn and improve.
6.3.1.1. The Four Perspectives of the Balanced Scorecard
80
Financial: In the government arena, the “financial” perspective differs from that of the tradi-
tional private sector. Private sector financial objectives generally represent clear long-range
targets for profit-seeking organisations, operating in a purely commercial environment. Finan-
cial considerations for public organisations have an enabling or a constraining role, but will
rarely be the primary objective for business systems. The key question in this perspective is
“how do we creat value for the onwers and other stakeholders”? For Government or non-profit
organisation, the question is how do we maximise mission values and effectiveness? The key
results of the perspective are Financial performance, values and effective resource use.
Success for public organisations should be measured by how effectively and efficiently they
meet the needs of their constituencies. Therefore, in the government or non-profit organisation,
the financial perspective emphasizes cost efficiency, i.e., the ability to deliver maximum value
to the customer.
Customer: This perspective captures the ability of the organisation to provide quality goods
and services, the effectiveness of their delivery, and overall customer service and satisfaction.
In the governmental model, the principal driver of performance is different than in the strictly
commercial environment; namely, customers and stakeholders take pre-eminence over finan-
cial results. In general, public organisations have a different, perhaps more significant, stew-
ardship/fiduciary responsibility and focus than do private sector entities. The key question to
ask under the customer perspective is “ in the eyes of customers and other stakeholders, how
well are we meeting their needs”? The key results in this perspectives are satisfaction and
retention.
Internal Business Processes: This perspective focuses on internal business results that lead to
financial success and satisfied customers. To meet organisational objectives and customers’
expectations, organisations must identify the key business processes at which they must excel.
Key processes are monitored to ensure that outcomes will be satisfactory. Internal business
processes are the mechanisms through which performance expectations are achieved. The key
question to ask under this perspective is how can we improve internal processes to deliver
product and services better, faster, and cheaper? The key results are efficiency and quality.
Learning and Growth: This perspective looks at the ability of employees, the quality of in-
formation systems, and the effects of organisational alignment in supporting the accomplish-
ment of organisational goals. Processes will only succeed if they are driven by adequately
skilled and motivated employees, supplied with accurate and timely information. This per-
spective takes on increased importance in organisations that are undergoing a radical change.
To meet changing requirements and customer expectations, employees may be asked to take
on dramatically new responsibilities and may require skills, capabilities, technologies, and or-
ganisational designs that were not available before. The key question to ask in this perspective
is how can we support the internal process through improved knowledge and skills, ability,
tools and technology, leadership and other capabilities? The key results are human capital,
tools, innovation, infrastructure and culture.
81
PERFORMANCE APPRAISAL FORMS SAMPLE
– Using the Balanced Scorecard Principle
The purpose of the form is to provide formal feedback to employees on their

performance for the period and to review performance objectives and targets. The
entire process should be based on a discussion between the appraiser and
appraisee.
This form is divided into 2 sections:
Section A – Performance Objectives & Targets,
Section B – Exceptional Achievement
Name Job Title Employee No. Grade

Department Appraisal Period To
From
82
SECTION A: PERFORMANCE OBJECTIVES & TARGETS.
This section evaluates the appraisee’s achievement of the agreed targets outlined in the attached target setting
form. It makes up 100% of the total score
Financial Performance: Please rate his/her contribution to the financial targets of the department i.e., cost savings
and/or revenue generation.
S/N KEY PERFORMANCE INDI- TARGETS ACTUAL DONE WEIGHTS SCORE COMMENTS
O CATORS
1.
SUB TOTAL
Customer Performance: Please rate in terms of meeting customer’s needs, timely delivery of services, customer
satisfaction & target market share
S/N KEY PERFORMANCE INDI- TARGETS ACTUAL DONE WEIGHTS SCORE COMMENTS
O CATORS
1.
2.
3.
4.
SUB TOTAL
Process Performance: Please rate him/her in terms of seeking better ways of achieving targets, efficiently/effec-
tively managing existing functions & demonstrating continuous improvement mentality.
S/N KEY PERFORMANCE INDI- TARGETS ACTUAL DONE WEIGH SCOR COMMENTS
O CATORS TS E
1.
2.
3.
SUB TOTAL
83
Learning &Growth Performance: Please rate his/her contribution towards closing gaps in the capability of people,
system procedures, growth/development of products and willingness to learn/share knowledge.
S/NO KEY PERFORMANCE IN- TARGETS ACTUAL DONE WEIGHTS SCORE COMMENTS
DICATORS
SUB TOTAL
TOTAL 100
SECTION B: EXCEPTIONAL ACHIEVEMENT
This section outlines the appraisee's achievements that made a positive & significant impact on the company’s
systems, processes and businesses.
SUMMARY OF SCORES
Total Score (Final Score) for Section A:
Please tick one of the following:
Excellent Very Good Good Average Unacceptable
75 - 89 60 - 74 50 - 59 < 50
90 - 100
JOB PERFORMANCE REQUIREMENTS
(i) What are the appraisee’s major areas of strength?
84
(ii) What are the appraisee’s major areas for improvement?
(iii) What are the suggestions for developing the appraisee’s job performance levels? (This should
include specific ideas regarding training needs etc.)
Appraisee’s Rating of the Appraisal
Please rate this appraisal by ticking one of the boxes below.
Good (3) Fair (2) I have reservations (1)
Additional Comments by the Appraisee:
Name of Ap- Signature of Ap- Date

praiser praiser
Name of Ap- Signature Date
praisee
Head of Division Signature Date
Current Current Job Designa-

Grade tion
Years/Months Spent On Current Years/Months Spent On Current Job Desig-

Grade nation
85
staff on PROBATION EVALUATION
FORM - Sample
The purpose of the form is to provide formal feedback to employees

performance
on their for the period and to review performance objectives and targets. The
entire process should be based on a discussion between the appraiser appraisee.
and
Name Job Title Employee No. Grade
Department and Branch Appraisal Period From To
Qualitative Evaluation Criteria
Job Knowledge (Knowledge of specific functional assignment, Application of knowledge, Confi-

dence and experience)
1 2 3 4 5 6 7 8 9 10
Comments--------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Technical Competence (Application of technical skills, professional competence and problem

solving skills)
1 2 3 4 5 6 7 8 9 10
Comments--------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Quality of Work (Accuracy and completeness, ease of turnaround)
1 2 3 4 5 6 7 8 9 10
Comments--------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Dependability (Willingness to accept responsibility, degree of commitment, ability to work under

pressure)
86
1 2 3 4 5 6 7 8 9 10
Comments--------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Ability To Work Under Pressure

1 2 3 4 5 6 7 8 9 10
Comments--------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Team Spirit (Working with subordinates, colleagues and supervisors)
1 2 3 4 5 6 7 8 9 10
Comments--------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Creativity (Recommendation of new strategies and ways, always seeking new and effective ways
to do things, always suggesting new ideas that can help the organization to grow)
1 2 3 4 5 6 7 8 9 10
Comments--------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Self Discipline (Punctuality and Attendance)
1 2 3 4 5 6 7 8 9 10
Comments--------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Customer Care (Willingness to genuinely help customers, relationship building, positive approach
to problem solving)
1 2 3 4 5 6 7 8 9 10
87
Comments--------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Some of the qualitative criteria above involve subjective criteria. Therefore, the Supervisor or
Head of Department/
Unit should ensure that BIAS or PREJUDICE is eliminated to ensure effective measurement.
APPLICABLE TO SALES AND MARKETING STAFF ONLY
QUARTER SALES TARGET ACTUAL SCORE (ACTUAL/TARGET X 100)
TOTAL
Skills Deficiencies/ Areas for improvement (To be jointly completed by the appraisee and ap-
praiser)
S/NO Skills Gap Recommendation
Constraints/ Factors militating against better performance (TO BE COMPLETED BY THE AP-
PRAISEE)
S/N Constraint Recommendation
Appraiser’s Comments----------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
Appraisee’s Comments----------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
88
----------------------------------------- -----------------------------------------------
Appraisee (Name, Signature and Date) Appraiser (Name, Signature and Date)
Department Head’s Comments------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
NAME SIGNATURE & DATE
HR COMMENTS
______________________________________________________________________
______________________________________________________________________
_____________________________________________________________
------------------------------------
SIGNATURE & DATE
MD’S Comments and Approval --------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------
------------------------------------
SIGNATURE & DATE
6.4 Performance Management Automation

Performance management creates an opportunity for organisations to motivate their employ-
ees. It creates an opportunity for managers and employees to come together to discuss the
achievements and challenges encountered during the review period. In some organisations, the
performance management process can be challenging due to reliance on traditional methods
that allow managers and human resources specialist the use of papers and records in the review
process. The whole process of scheduling, executing, and documenting could be audacious.
To eliminate these challenges associated with the traditional methods of performance manage-
ment, organisations are now embracing automation of the performance management process.
There are various performance management software solutions available for automating the
evaluation processes in modern organisations.
6.4.1 Performance management software
89
Performance management software systems automate the tedious task of regularly evaluating
employees. With the right performance management software in place, the challenge associ-
ated with paper works is eliminated. The use of performance management software also makes
it easier for managers to track employees’ goals and performance throughout the year, and then
share this information with authorized users across the organisation.
. One significant change in HR and talent management software has been the move toward
cloud computing. Cloud computing, also known as Software-as-a-Service (SaaS), is a model
in which the application is hosted on the web, making it easy for you to securely access the
application through any Web browser.
One key benefit of web-based software is that users can access the system from anywhere.
With this model, employees can log in and perform self-reviews, view past reviews, see recent
achievements against goals set and schedule reviews without bothering the busy folks in HR.
Managers can set reminders, run performance reports, flag top talent for advancement and then
easily share this information among departments. Traditionally, these activities were more lim-
ited to the HR department, where a much smaller set of employees had access to older cli-
ent/server systems.
Performance Management software functionality includes:

• Performance notes
• Goal tracking
• Information sharing
• Stack ranking
• Electronic record-keeping
• Interdepartmental communication
• Real-time reporting
• Performance rating/evaluation
6.4.2 Determination of Performance Management workflow/flowchart

Performance workflow can be categorised into three cycles, the beginning of cycle process
workflow, mid-cycle process workflow, and end-of-year process workflow/flowchart. The de-
termination of performance management workflow is essential in performance management
automation as that will guide the choice of software and determination of system requirements.
Beginning of Cycle Process Workflow: this is the beginning of the evaluation process. The
employee enters goals, discusses, and finalises goals with Supervisor. Evaluation remains with
the employee until mid-cycle goal review.
Mid-Cycle Process Workflow: Employee accesses active evaluation and completes goal com-
ments for the mid-cycle review period. Employee submits an evaluation to Supervisor for his
90
comments. Supervisor returns the evaluation to the employee and meets with the employee.
Evaluation remains with the employee until the end-of-cycle period.
End-of-Cycle Process Workflow: Employee accesses active evaluation and completes com-
ments on achievements on job duties, employee summary of performance and goal comments
for the end-of-cycle period. Employee submits an evaluation to supervisor (evaluation re-
viewer). Supervisor completes rating on employee’s accomplishments on job duties, end-of-
cycle comments on goals, overall rating, and overall comments. Supervisor and employee meet
to discuss performance, the employee makes comments on the overall score and signs and
returns to the supervisor. Supervisor forwards evaluation to human resources for approval.
6.4.3 Determination of System Requirements

This involves gathering data from different sources on what should be done. System require-
ments include; functional requirements, current, and future functions, current and future data,
and current and future employee jobs. In determining system requirements, one needs to un-
derstand the goals and objectives that determine how and what work is done, the data (in terms
of, definition, volume, and size) that is handled by the organisation to support jobs, the way
data are moved and stored, the inter-relationship among different data handling activities, the
rules that govern how data are processed, policies and guidelines that describe the business and
the market and environment in which it operates, key events that affect data value and when
these events occur. The methods for determining system requirements include questionnaire,
interviews, and observations.
6.4.4 Performance Management Software Demonstration

In a software demonstration, you will be asking the vendors to show how they will handle
specific requirements. This goes beyond their usual presentations. Software demonstration is
an essential step in the software selection process. In doing this, managers are advised to do
the following:
• Prepare a demo script: preparation of demo script serves three primary purposes; it
gives you an opportunity to observe how the vendor will solve your problems, how to
schedule your personnel to show up only when their specific functional areas is being
carried out, and it gives you the opportunity to compare the vendors on equal basis.
• Get the software vendors ready: Give the software vendors the demo script to prepare
well for the demonstration. This includes giving the opportunity to the vendor to hold
a pre-demo meeting and seek clarifications about the script and your organisation.
• Select the demonstration evaluation team: This team will hold meeting with the project
coordinator and those that will attend the demonstration to guide them on how to score
and rank the vendors
91
• Assign a demo coordinator: The demonstration coordinator will be responsible for en-
suring that the vendors keep to time during the demonstration, and all the functional
areas are covered.
• Organise a demo review meeting: At the end of the demonstration, you are required to
gather all the feedback from the attendees and then hold a meeting to review the strength
and weaknesses of the vendors. This review meeting will aid in decision on a few ven-
dors to focus your final decision.
6.4.5 Software Assessment/ Comparison: The reasons for the acquisition of performance
management software will differ from one organisation to the other. An organisation may have
an existing HR system but requires a more sophisticated system with measurable results to
monitor, track, and review employees. The software may be straightforward, simple-to-use
tools that can be implemented into their complex HR operation with minimal interruption. High
functionality is a significant factor to consider when assessing the software. Software assess-
ment is a matter of performing thorough performance management software checks/compari-
sons and finding the right system that can handle an organisation’s unique needs today and in
the future.
In assessing the performance management software, assessors should watch out for the follow-
ing features: whether it meets the business needs of the organisation, it is user-friendly, there
is existence of excellent reporting facilities, level of flexibility, cost-effectiveness, the question
of which supplier to get the software from and the support expected from the supplier and the
level of reliability of the software.
6.4.6 Performance Management Software Vendor Assessment

When choosing supplier, management should consider the level of support and the reliability
of the software vendor. In choosing which of the software vendor, Armstrong (2012) suggested
that if an external vendor is used, the decision should be made as follow:
• Research the software market
• Review the performance management software processes and existing systems.
• Produce a specification of system requirements.
• Call for tender from several vendors
• Invite vendors to demonstrate their products.
• Obtain references from existing customers, including site visits.
• Finally, analyse and score the products against the specification
While every vendor is evaluated against each of the criteria outlined by the organisation, the
system requirements should be able to expose each vendor's strengths and challenges.
6.4.7 Performance Management Software Implementation Project Management

92
As in the development and implementation of HRIS, the performance management software
requires ten steps:
- Determine objectives
- Prepare a business case for the software
- Carry out a feasibility study to consider applications and their likely costs and benefits
- Prepare a requirement specification that will set out the detailed system expectations
- Select the software in the form of hardware and software required
- Plan the implementation programme to ensure that the objectives will be achieved
within a given time frame
- Involve users to ensure that people that will benefit from the system contribute their
ideas and thus take ownership of the system.
- Control the project against the implementation programme to ensure that it delivers
what it is meant to deliver on time and within budget.
- Provide training to all users so that they can operate it and get the best from the system.
- Monitor performance to ensure that the system meets the expectations.
6.5 Summary
The chapter explored the concept of performance management and the various issues therein.
The discussion was handled in five different sub-heads. It started by giving an overview of
performance management, followed by a performance objective setting. It further discussed
the various variables under performance measurement and evaluation. The chapter also cov-
ered performance management tool and concluded with a discussion on performance manage-
ment automation.
The management of performance in any organisation is so essential and cannot be left to

chance. HR experts should know that the survival of any organisation is dependent on how
well the organisation performs, and so it is recommended that HR practitioners should treat
performance management with the seriousness it deserves.
Review Questions
1. Discuss the steps necessary for the implementation of performance management soft-
ware
2. Explain the four perspectives of the balanced scorecard
3. What do you understand by performance evaluation and appraisal?
4. Why is performance management necessary to an organisation?
93
References
Armstrong M., & Baron, A., (2004). Managing performance: Performance Management in
action; London, CIPD
Private Limited
Caruso, K. N. (2013). A practical guide to performance calibration: A step by step guide to
increasing the fairness and accuracy of performance appraisal. Via people Inc. re-
trieved from http/www.viapeople.com
CHAPTER SEVEN
STAFFING
LEARNING OBJECTIVES
Upon completion of the study of this chapter, you should be able to:
1. explain the rudiments of sourcing for required manpower for employment, why and
how it is done;
2. explain the aims of HR planning;
3. explain HR planning activities; and
4. explain the importance of HR planning
7.0 Introduction
The staffing function could be described as the ‘gateway’ through which the desired manpower
is attracted and selected as organisational members. Staffing has long become a strategic issue
due to the prevalence of domestic skilled labour shortage and age demographics within organ-
isations. HR professionals should, therefore, be directly concerned in the strategic planning
process involved in the forecasting of the organisation’s human capital needs. Organisations
need to know the number and sort of people they should have to meet present and future busi-
ness requirements.
94
7.1 Manpower Planning
Manpower planning and development, also known as human resource planning, is an essential
cornerstone in the efficient management of personnel in an organisation. It entails getting the
right number and type of personnel to do the required tasks for the fulfillment of the goals and
objectives of the organisation. It is the process of reviewing human resource requirements to
ensure that the organisation has the required number of employees, with the necessary skills to
meet its goals. (Dessler et al. 2002).
Armstrong (2009) identifies three sets of activities involved in human resource planning to
include: (a) scanning and assessing the environment. (b) specifying the objectives to be
achieved by HR activities along with the measures to be used to determine the achievement of
those activities; and (c) developing specific plans for HR policies and practices, along with
timetables for implementing those plans.
The manpower planning process is an on-going and continuous strategy which is undertaken
through a systematic set of procedures.
7.1.1 Key Elements of Manpower Planning:

Once the HR implications of the organisation’s strategic plans have been analyzed, there are
four processes that must take place. Human resource planning has to adopt a systems approach
and is carried out in a set of the procedure (Suresh, Karthkeyan, & Mohanraj, 2014).
i. Supply Analysis
Analysis entails assessing the current status of the manpower within the organisa-
tion. The analysis is done by taking an inventory of the skills, competencies, and
abilities of all personnel in the organisation. It also entails accounting for the num-
ber of departments and the sizes of these departments within the organisation. The
analysis helps the HR managers to make informed forecasts about the human re-
source needs of the organisations. This is referred to as supply analysis.
ii. Future Projections/Demand Analysis

Forecasting means making future projections about an organisation’s human re-
sources needs. This is done through employee brainstorming and input from ex-
perts, such as human resource management consultants. Other methods of forecast-
ing include using past trends and statistics to project the future and analysing the
workload in each department to determine how many personnel are needed to un-
dertake the work. Forecasting helps the HR managers answer questions such as how
many employees should be recruited, and how should the departments be restruc-
tured for efficiency.
iii. Gap/Variance Analysis

The gap analysis is a comparison of the current status of an organisation’s man-
power and the projected manpower needs. The gap analysis entails detailing the
95
specific numbers of employees needed, how restructuring will be done, the steps
which will be taken to train employees, and the types of skills and competencies
required to undertake various tasks in the organisation. The gap analysis is consid-
ered as a preparatory step for the development and implementation of programs that
will assist the organisation in meeting its human resources needs.
iv. Strategy Development

Strategy development entails establishing programs to facilitate the actual imple-
mentation of the results of the gap analysis. Thus, HR managers develop training
programs to impart the skills needed by the employees for better performance. The
managers also develop strategies on how to restructure the departments, how to re-
cruit the most competent personnel, and how to outsource various services or skills
to cut costs. Through monitoring and continuous improvement of these strategies,
an organisation can efficiently manage its human resources.
Three scenarios are usually thrown up after a painstaking organisational analysis/assessment

involving the following have been done (Dessler et al. 2002). They are:
(i) Labour supply exceeds demand (state of surplus)
(ii) Labour demand exceeds supply (state of shortage)
(iii) Expected demand matches supply (state of equilibrium).
If scenarios one and two are revealed by the organisational assessment or analysis, strategies
are developed to address these to get the organisation in the desired ‘state of equilibrium.’
7.1.2 Importance of Manpower Planning

An essential benefit of the manpower planning is that it provides a framework for the coordi-
nation and integration of HRM policies and practices related to staffing and development ac-
tivities since they affect the requirements for and supply of human resource. Effective HRP
helps the organisation to:
• Achieve its goals and objectives

• Plan and coordinate recruitment, selection, training, career planning, and other staffing
and development activities more effectively
• Achieve economies in hiring new workers
• Make primary labour market demands more successful
• Anticipate and avoid shortages and surpluses of human resources
• Control and reduce labour cost
• Utilize employees’ capabilities more effectively, thereby increasing performance and
productivity, and reducing dissatisfaction and turnover
96
• Establish employment timetable goals that are realistic and attainable
The opposite of these benefits will result when an organisation lacks an effective manpower
plan.
Manpower Planning Sheet - Sample
Requirement Total Man- Manpower Requirement Period

power Ap-
proved
Dept/Func- Location Actual as *Ad- Re- Total Man- Addi- Re- Total Ac- I Qrt II Qrt III Qrt IV
tion at di- place- power Re- tional place- Head tion Qrt
01/04/2019 tional ment quired ment Count
0 0
0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Total
* Please attach Job Description with Justification for approval.
7.1.3 Manning Level Audit

Manning describes the rate at which job posts are adequately and efficiently managed by the
available personnel involved within the job process. It is the process of providing people to do
a job or the number of people available to do a job.
Manning level audit ensures that those that work at job posts are optimally productive by the
resources at their disposition. This is done through standardizing work role and taking records
of the performance of the job incumbent by using key performance indicators (KPIs). It is a
97
tool of performance management, and also it ensures that there are sufficient workers at every
work station.
An organisation in a bid to maintain optimal manpower utilisation may maintain a register of

casual or temporary staff to man job stations if such job stations are left vacant for some time.
This may happen as a result of attrition.
7.1.4 Approval of the manpower plan

Approval of the manpower plan is the prerogative of top management. The human resources
plan and the corporate business plan determine the entire business decision of any organisation.
The manpower plan determines who does what, where, and how in the organisation through
the determination of organisational strategy.
7.2 Recruitment
The process of finding and hiring the best-qualified candidate (from within or outside of an
organisation) for a job opening, in a timely and cost-effective manner. The recruitment process
includes analysing the requirements of a job and attracting the right job candidates for the pur-
pose of screening and final selection into the organisation. Thus, recruitment can be said to
have been accomplished when the right quantity and quality of manpower have been attracted
and polled for onward interview and selection.
According to Neera (2012), when qualified workers are recruited, the organisation is better for
it. Better recruitment and selection strategies result in improved organisational outcomes. Re-
cruitment is a critical HR function because the quality of a firm’s human resource depends to
a great extent on the quality of its recruits.
7.2.1 Recruitment & Selection Policy

This is an approved document that captures comprehensively how an organisation intends to
attract and acquire, and sometimes retain its desired manpower. A typical recruitment policy
often begins with a policy statement, such as:
“…is committed to recruiting and selecting the best people available. Selection
decisions are made based on merit, and the principles of equity, fairness, and transpar-
ency will apply in all recruitment and selection processes.”
The policy captures the organisation’s overall strategy of recruiting qualified hands, that will
bring needed competencies into the organisation for overall organisation’s profit and develop-
ment. The policy must contain, amongst other things; processes and procedures (e.g. needs
identification, position description, recruitment requisition and approval, advertising and
sourcing, use of recruitment agencies, applications and enquiries, review of shortlisted candi-
dates, selection interviews, reference check, employment offer, etc.). Methods of recruitment
(e.g. external vs. internal or a combination of both), responsibilities of those involved in re-
cruitment, non-discrimination and affirmative action/equal opportunity clauses, etc.
98
In some cases, depending on the industry, some companies may resort to the external labour
market in replenishing their workforce, while others will instead train and promote employees
from within the organisation. For example, the practice of poaching is prominent in the banking
sector, where managerial skill is highly needed.Whereas employers of labour in the manufac-
turing companies will instead work on improving the skills of the workers they have because
of the number of years it takes to acquire the skills they have and considering the money they
have spent on training as well the need to keep trade secrets.A recruitment policy may also
include quota, education, calendar year, training, induction, etc.
Purpose of Recruitment
The recruitment function within the employment process is meant to serve the following pur-
poses:
• ensure that adequate poll of applicants is generated at the minimum possible cost
• eliminate (or at least minimize) unqualified or poorly qualified candidates, thus improv-
ing the success rate of the selection process
• find and attract individuals who not only meet the job requirements but are also suited
to the organisation’s unique culture and climate
• help the firm achieve its employment equity goals by attracting a diverse applicant pool
Recruitment vs. Selection

Although many organisations sometimes include selection as part of the recruitment function
(as well as use both terms interchangeably), it is important to emphasize that, within the context
of employment, both functions are known to show some differences. While recruitment merely
connotes the process of searching the candidates eligible for employment and making them
apply for the corresponding jobs, the selection, on the other hand, involves the various steps
employed to choose the right candidate for the right job. These steps may include screening
and interviewing. Thus, the selection is said to begin where recruitment has been completed.
This is the main difference between recruitment and selection. Therefore, both are part of the
employment process.
Having highlighted the difference between recruitment and selection, it is important to state
also that, both functions are discussed here as belonging to the same process.
The selection process is highlighted hereunder:
EVALUATING THE SE- STEP 10

LECTION PROCESS
CANDIDATE NOTIFICATION STEP 9
MAKING THE HIRING DECISION STEP 8
A REALISTIC JOB PREVIEW STEP 7

99
THE SUPERVISORY INTERVIEW STEP 6
BACKGROUND INVESTIGATION & REFERENCE CHECK STEP 5
THE SELECTION INTERVIEW STEP 4

Selection Procedure
Source: Dessler et al (2002). Human Resource Management in Canada, Pearson education Canada Inc.
A recruitment and selection procedure includes the various stages through which a recruiter
has to take applicants through to determine their employability. At any point in these stages, a
recruit may be turned down. The point in following the recruitment stages is to ensure that the
best candidate for the job is picked.Dessler et al. (2002) identified ten typical steps in the se-
lection process as follows:
STEP 1: Applicant Reception

This is the first stage in the selection process where the job applicant comes in contact with the
organisation either virtually (online) or in person. Candidates with desirable qualifications are
given an application form to be completed and returned within a stipulated time. Some appli-
cants have been found to self-select themselves out of the process at this stage if they realize
they are unqualified, or decide that they have no desire to work for the firm based on some
information gathered or treatment received.
STEP 2: Initial Applicant Screening

At this stage, the HR department reviews filled out application forms and curriculum vitae
(CV). Candidates who closely match the job specification are identified and given further con-
sideration. An increasing number of firms are taking advantage of IVR (a telephone-based sys-
tem that screens job candidates in large number), applicant tracking system, skills management
soft-ware, and or web-based applications to speed up initial screening and make the process
less labour intensive. Most organisations in Nigeria are found to screen job candidates via the
telephone.
STEP 3: Selection Testing
100
Selection testing involves the use of a variety of tests to measure such diverse attributes of
candidates as job performance and honesty. Example of these tests includes; essential intelli-
gence (IQ) test, emotional intelligence (EI) test, cognitive abilities test, physical abilities, per-
sonality and interest, achievement tests, management assessment centres (e.g. in-basket exer-
cise, leaderless group discussion, management games, individual presentations, objective tests,
an interview), etc.
STEP 4: The Selection Interview

The interview is widely held to be the most common and popular means for selecting job can-
didates in Nigeria. It’s the most important aspect of the selection process. Whether candidates
are interviewed before or following testing varies greatly. The selection interview involves a
process of two-way communication between the interviewee(s) and the interviewer(s) which
is meant to predict future job performance based on applicants’ oral responses to oral inquiries.
Interviews significantly influence applicants’ views about the organisation, thus should be han-
dled professionally. Interviews are mainly classified into two categories – structured and un-
structured.
Dessler et al. (2002), classified interviews into four ways according to (1) degree of structure
(2) purpose (3) content (4) and the way the interview is administered. In turn, the main types
of interview used in selection - structured or unstructured, mixed, situational, behavioural, se-
quential, panel, stress, computerised and video conference – can each be classified into one or
more of these four ways. While Armstrong (2009) mentioned three types of interviews which
include: (1) biographical interviews, (2) Structured behavioural-based interviews, and (3)
structured situational-based interviews.
Selection Errors HR Professionals should avoid:
a. Not following a structured process: following a structured guide will help the inter-
viewer to ask all applicants questions around the same competencies for the purpose of
comparison. Asking questions around different competencies for each candidate can
pose the challenge of not having a comparable picture of each candidate
b. Asking questions that are not job-related can cause legal breaches and often candi-
dates can go off on tangents and discuss other topics during an interview.
c. Comparing the candidates during the interview process can affect the interviewer’s
ability to gather all necessary information about the candidate to make an appropriate
hiring decision.
d. Not assessing job fit assessing job fit is one of the most crucial parts of the interview
process; it involves primarily evaluating what a candidate likes and dislikes and com-
paring it to what the position has to offer.
101
e. Primacy Effect refers to the tendency to give more significant consideration to candi-
dates that were interviewed first or those at the beginning of the list since they are easily
recallable.
f. Recency Effect refers to the tendency to assign more value or credibility to a candidate
interview at the later period of the exercise just because they may be easier to remember.
g. Hallo Effect occurs when an interviewer, for example, assigns higher ratings on other
aspects of the candidate due to one outstanding factor (e.g., an impressive sales figures);
or the tendency to make sweeping and illogical generalisations about a candidate’s
competence (and assign more value) due to an impressive item on his/her Curriculum
Vitae.
h. Leniency Error refers to the tendency to assign higher ratings to the generality of the
candidates being interviewed than they might ordinarily deserve.
i. Harshness or Strictness Error: as the term goes, refers to the tendency to allocate low
ratings to the generality of job candidates due to the rater’s high personal standards. It
is the opposite of leniency error.
j. Central Tendency Error occurs when the interviewer allocates average scores to the
majority of the interviewees
k. Similar-to-me Error refers to the tendency for the interviewer to display a bias towards
a job candidate by rating him/her higher than necessary simply because they are similar
to the interviewer.
l. Contrast Error occurs when the interviewer appears to be more concerned about how
the candidate compares with others being interviewed or to one of the interviewer. The
rating he gives would be influenced by his perception of the assessment of the ‘refer-
ence other.’
m. Stereotyping Error refers to the tendency to allow one’s judgment or rating about a
candidate to be influenced by the candidate’s social, religious, ethnic (etc.) backgrounds
or affiliations.
STEP 5: Background Investigation and Reference Checking

Most employers know the importance of background investigation and reference checking.
Such checking serves two essential purposes: (1) verifying the accuracy of the information
pertaining job-related educational qualification and experience provided by candidates, and (2)
validating the information obtained during the other steps in the selection process. Most large-
sized firms are known to outsource this function to reputable organisations.
STEP 6: Supervisory Interview

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This is usually the second interview where the most successful candidates (say two or three)
are made to meet with the immediate supervisor or manager, who is most suitable and likely to
make the final hiring decision. When the supervisor makes a hiring recommendation, he will
most likely be committed to ensuring that the new hire succeeds and provides guidance. He
should also take responsibility for the failure of the new hire.
STEP 7: A Realistic Job Preview (RJP)

It is recommended that interviews be supplemented with RJP since it provides an excellent
strategy for creating an appropriate expectation about the job. RJP presents practical infor-
mation about the job demands, the organisation’s expectations, and the work environment.
Candidates are thereby given the opportunity to learn both the positive and negative aspects of
the job and firm.
STEP 8: Making the Hiring Decision

At this stage, information from multiple predictors are combined, and the applicant who is the
best fit with the selection criteria is identified. The HR department staff usually play a major
role in compiling all the data. However, it is the immediate supervisor who is usually respon-
sible for making the hiring decision.
STEP 9: Candidates Notification

Once the selection decision has been made, a job offer is extended to the successful candidates.
Often, the initial offer is made via by telephone, but it should be followed up by a written
employment offer that specifies important terms and conditions of the employment such as;
starting date, starting salary, a probation period, etc. It is often advisable to make the employ-
ment contract as explicitly clear and detailed as possible - Atilola B. (2016).
STEP 10: Evaluating the Selection Process

Evaluating the selection process involves considering several questions;
• Is the selection procedure used useful in identifying qualified, capable, productive em-
ployees?
• Are the techniques used efficient and worth the costs and troubles?
• Are there ways the process could be streamlined or improved?
Constructive feedback can be obtained from employees and supervisors and through
assessment.
It is important to emphasize that the selection tests instruments must meet the requirement of
reliability (i.e. the degree to which interviews, tests, and other selection procedures yields com-
parable data over some time), and validity - which is the accuracy with which those instruments
can measure what they were meant to measure.
7.2.2 Recruitment Procedure

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A recruitment procedure includes the various stages through which a recruiter should take ap-
plicants through, to determine their employability. At any point in these stages, a prospective
recruit may be turned down. The point in following the recruitment stages is to ensure that the
best candidate for the job is picked.
The most widely used recruitment stages are stated below:
• Preliminary interview
• Testing
• Second interviewing
• Pre-employment medicals
• References
• Certificate verification
• Offer of Employment
• Acceptance of the offer of employment
7.2.3 Preliminary Interview

A recruit, during the preliminary interview, is tested in an indirect way to determine his mental
stability, psychological disposition and ability to construct meaningful sentences and also to
know his predisposition to work, family life and leisure. It is an attempt to formally meet a
recruit after the call for his resume. A recruiter must have listening skills and must be quick in
picking up signals while listening to the recruit and perusing his resume to check for deviations.
7.2.4 Testing
Tests available to a recruiter to use in evaluating a recruit may include qualitative test, quanti-
tative test, proficiency test, simulation test, psychological test, etc., depending on the type of
job and the competencies required on the job.
7.2.5 Second Interview

The second interview may indicate the organisation’s interest in the recruit. It means the hire
is being considered for the vacant post since he has passed the tests that happened to be the
mental and personality hurdles. The second interview may include, asking the recruit questions
that would test the candidate’s suitability for the job as well as his/her willingness to accept the
organisation’s expectations for the role.
7.2.6 Pre-employment Medicals

The next stage after a recruit and his recruiter have reached an agreement on the possibility of
job placement, is for the hire to be sent to a medical practitioner to ascertain his/her medical
fitness for the job. It is important to know this, to save the recruit the possibility of falling ill
on the job or fatal consequences due to the possible health issues the hire may be living with.
Also, the organisation may be saved from torrents of medical bills or litigation that may accrue
from engaging an employee with unmanageable health conditions.
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7.2.7 Reference Check
Reference contacts are people that stand for or attest to the character of a recruit. Under the
terms and conditions of employment, referees are made to sign forms to show that they are
responsible and may be held liable to a certain degree if the recruit exhibit some unsavory
character such as theft, sabotage, murder, etc.
To the recruiter, it is best advised to request for referees with clean personality, landed property
and should be linked to reputable organisations. The reference check should be done before an
employment letter is given at a time not specified to the knowledge of the recruit. However,
organisations must avoid the practice of employing before completing the reference check of
prospective job candidates. It is advisable for the organisation to adopt the method of carrying
out reference check on a prospective candidate up to 3 levels of previous employers. This can
also be used to validate information provided or claims made by candidates with regards to
work experience.
7.2.8 Certificate Verification

Certificates are verified to ascertain the originality of the results as claimed by the recruit. In-
stitutions, where the certificates were issued, are approached to substantiate the claim by check-
ing the names and codes of the presented certificate against the records of the named institu-
tion(s). It is advisable to engage the services of an external party to carry out this function for
fear of compromise.
7.2.9 Offer of Employment

At this stage of recruitment, the worker is offered a chance to enter into a contract of employ-
ment with the employer. A well-detailed letter of employment which must capture all relevant
aspect of the employment terms is then presented to the new employee/recruit.
7.2.10 Acceptance of Employment

Should a recruit find the terms and conditions of working for an employer favourable, he may
then choose to accept the employment letter by signing the acceptance column of the letter.
This signifies the intention of the recruit to enter a contract of service with his employer, by
this, an employment relationship or contract is officially and legally consummated.
7.3 On-boarding
This is a planned system of integration to familiarize recruits with the organisations culture,
staff, management, environment, and work systems. More than an orientation programme that
may last for a day, on-boarding takes the new employee through a broad spectrum of the or-
ganisations vision, mission, objectives, and goals.
It may take up to 2 years to carry out onboarding because the worker should watch how a
company operates for a calendar year and practice what he may have observed the following
year to reinforce his knowledge of happenings.
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Events undertaken by the company may include monthly, quarterly, semi-quarterly, or annually
exhibited function. On-boarding exposes the worker to events of duty to the organisation and
of welfare to himself, i.e. a meeting of the workers/management every three months, thirteenth-
month salary and staff party, etc.
7.3.1 Reception upon Resumption:

The first impression matters a lot, they say. Apart from the interview, this is the first time the
new hire will have the opportunity to take part in the orientation and familiarisation tour which
is a day event and a part of the on-boarding plan of the management. New hires are introduced
to fellow workers and management during orientation and are presented with the employee
handbook and other relevant materials to help them navigate the organisation and understand
work procedure and processes. Knowledge of the necessary information about the organisation
helps to prevent the new hire from going contrary to the rules and regulations of the organisa-
tion. New workers are also ushered around the company to familiarise them with workstations,
machines, and their uses.
7.3.2 Documentation
Involves the opening of staff’s file and other documentation usually done by the human re-
source department and copied to other departments like accounts, IT, welfare, etc. The staff
name is entered in the human resource information system for payroll and other purposes.
A variety of documents may then be issued to the employee, including safety rules, company
rule book or employee handbook, which should include, amongst other things; a brief descrip-
tion of the organisation, details of basic terms and condition of employment, sickness and ab-
sence, company’s rules, company procedures (disciplinary and grievance), education and train-
ing facilities, health and safety arrangements, medical and first aid facilities, restaurant facili-
ties.
7.3.3 Induction
Induction is the process of receiving and welcoming employees when they first join a company
and giving them the necessary information they need to settle down quickly for work. New
starters are often concerned about who they are going to work for (their immediate manager or
team leader), who they are going to work with, what work they are going to do on their first
day and the graphical layout of their work environment (location, entrances, exits, lavatories,
restrooms, and the canteen). These concerns will have to be addressed promptly and in a pro-
fessional manner. An excellent induction program provides a sound foundation for employee
engagement, retention, and performance. Induction is a subset of the on-boarding process,
which some have argued, could last for up to two years.
The human resource department coordinates the induction programme from start to finish.
However, it is the responsibility of the new employee’s manager and team leader to handle the
departmental induction. Detailed induction activities should aim to, amongst other things:
- Put the new employee at ease
- Raise the employee’s interest in the job and the organisation
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- Provide necessary information about the working environment
- Indicate the standards of performance and behaviour expected of the employee
- Acquaint the employee of training arrangements and how he/she can progress in the
company.
An excellent induction programme should last between 2 – 6 weeks.
7.3.4 Deployment or Placement

Deployment is the movement of staff from one work assignment to another to meet operational
needs. Deployment may take the form of work assignments within the current job, lateral trans-
fers, relocation, or temporary assignments. Deployment of staff enables realignment of human
resources to new work assignments or job responsibilities to meet changing business needs or
to provide opportunities to gain skills and experience.
Employee placement is a process of allocating employed individuals to certain jobs that match
their skills and abilities. By performing this process, a business company attempts to create a
productive working environment in which there is a good match between management needs
and employee qualifications.
The process of employee placement comes in four steps, as follows below:

• Collect – gathering employee data to identify skills, qualifications, and abilities of the
existing workforce.
• Evaluate – evaluating employee competencies to define what kind of job every em-
ployee fits best.
• Place – allocating employees to relevant and best-fitting jobs.
• Control – monitoring and measuring the performance of employees at their work-
places.
In most companies, the process is usually documented and managed under an employee place-
ment policy that identifies and defines standards and requirements for employee qualifications
and jobs. Such a policy provides management staff with general guidelines and best practices
for selecting employees and appointing them to the right positions and job roles.
7.3.5 Follow up
The HR department or the individual whose role it is to look after new employees should ensure
a regular follow up with the employees to ascertain that they are getting along well. All too
often new employees are found to be shy and withdrawn during the early stage of the employ-
ment and would require a regular follow-up which are aimed at helping them resolve minor
issues that, if left unchecked, could affect the employee’s satisfaction and performance.
Recruitment Prosedure Chart

107
Need to recruit identified by the
HOD
Completion of Manpower req-

uisition form by HOD
HR Recommendation
Approval by MD
Internal Sourcing & short

listing of qualified staff
Recruitment Consult- Sourcing & short listing

ant/Head Hunter of applications
Data Bank
Interview/Shortlist Invitations for test/interviews
Interviews/pre-employment
medical test. (Yes or No)
7.4 Summary
The chapter focused on the staffing function of human resource management. This was dis-
cussed under four major sub-heads starting with an introduction, and then followed by a dis-
cussion on human resource planning, recruitment functions that included the selection tech-
niques. The chapter concluded with the section on on-boarding. Staffing function is very cru-
cial for any organisation, because it is at this point that the decision on getting the right people
on the right job at the right time is taken.
Review Questions:
1. Explain the nature of Human Resource Planning (HRP) and describe the cost associated
with a lack of or adequate HRP
2. What are the aims of HR planning?

3. Describe the relationship between HRP and Strategic Planning
4. Explain in detail the HR Planning Process
108
5. Explain the difference between Recruitment and Selection and highlight the various
stages involved in both functions
6. Which aspect of the Selection Process is the most important and why?
7. Explain the benefits of an effective Induction Programme from the employee’s as well
as the employer’s perspectives
References
Amudha, T. & Srinivasan A. (2016). Estimation of the variance of time to recruitment for a
single grade manpower system under two sources of depletion using univariate policy
of recruit ment. International Journal of Scientific and Research Publication, 6, ISSN
2250-3153.
Dharamvirsinh Parmar (2012), ―Approaches and Techniques in Manpower Planning.
International Conference on Management, Humanity, and Economics.
Ishwarya, G. & Srinivasan, A. (2016). Estimation of the variance of time to recruitment in a
two
graded manpower system with different epochs for decision and exits and inter-deci-
sion times as an order statistics. International Journal of Engineering Applied Science
and Technology, 1(11), 45-49.
Neeraj, K. (2012). A study of the recruitment and selection process: SMC Global. Industrial
Engineering Letters, ISSN 2224-6097, 2(1)
Prashanthi (2013) Human Resource Planning – An Analytical Study. International Journal of
109
Business and Management Invention. 2, 23-29.
Dessler G., Cole D., & Sutherland V, (2002), Human Resources Management in Canada,
(Canadian 8th ed.), Toronto; Pearson Education Canada Inc.
Armstrong M. (2009) Armstrong’s handbook on human resources management practice.
(9th ed.), Kogan Page Limited.
CHAPTER EIGHT
PUBLIC SECTOR HUMAN RESOURCE PRACTICE
LEARNING OBJECTIVES
At the end of this chapter, students are expected to undestand:
1. the human resource practices in the public sector;
2. the National Manpower Planning;
3. the wages and salaries determination process in the public sector; and
4. the Civil Service rule on promotion, recruitment and performance management.
8.0 Introduction
Human resource management is not only restricted to the private sector. Most literature in hu-
man resource tend to focus more on practice in the private sector. However, the Government
110
remains the single largest employer of labour in Nigeria today. It is therefore important that
attempt is made at discussing the practice of human resource management in that sector. The
aim of this chapter, therefore, is to look at the practice of human resource management in the
public sector. The chapter starts with a discussion on the general overview of Public Sector HR
practice.
It covers the role of National Manpower Planning, National Manpower Board, National Sala-
ries, Incomes and Wages Commission, and Ministry of Labour and Employment in HR prac-
tice. Other areas covered include, wages and salaries determination in the Public sector, career
and performance management in the public sector, and concluded with the civil service rules
on promotion and recruitment.
8.1 Overview of the Public Sector Human Resource Practice

Human resource management is that part of the field of management, which provides for ef-
fective utilisation of human resource to achieve both the objectives of the organisation and the
satisfaction and development of employees. It covers such diverse areas as human resource
planning; job analysis; staffing; training and development; compensation and benefits; perfor-
mance appraisal and management; industrial relations; staff welfare; disengagement, etc. It is
necessary to enhance the capabilities of employees and ensure that they possess the requisite
level of competence, knowledge, skill, and attitude which must be continually improved upon
to increase productivity. This is the only viable way in which the civil service can discharge
its various responsibilities to the nation.
Within the context of the Nigerian Civil Service, numerous human resource management chal-
lenges have become evident over the years. They include the following:
• under-utilization and non-utilisation of available human resources;
• uncoordinated and fragmented approaches to human resources development;
• unavailability of reliable data on training needs;
• uncoordinated training programmes;
• inadequate linkages between training output and the duty post;
• officers negotiating their training without regard to organisational goals;
• lack of monitoring mechanisms for determining the capacity of trained personnel to
contribute meaningfully to organisational goals;
• inability to recruit and retain the needed well-trained and skilled manpower;
• poor remuneration, which is a disincentive to attracting and retaining skilled manpower;
• low morale, especially among officers in the managerial and professional cadres arising
from poor job satisfaction and low pay;
• over-centralisation of decision-making systems, resulting in the monopolisation of
power and decision-making authority by a few at the top hierarchy of the service;
• duplication of functions and overlapping of jurisdiction;
111
• outdated procedures, resulting in delays in handling government business with at-
tendant higher costs;
• loopholes in administrative procedures as a result of limited capacity for policy analysis
and long-term strategic thinking;
• stagnation at higher levels, reflective of poor succession and career planning;
• need for refinement in the deployment system to ensure a better fit between job and
skills;
• need for more and better-managed distribution of training opportunities;
• poor job descriptions and schedules for many posts, leading to inability to specify tar-
gets and hold officers accountable for results, all of which culminate in a seriously
flawed performance management system;
• an aging population and a preponderance of unskilled staff;
• disconnect in the recruitment process preventing user agencies (ministries, depart-
ments, and agencies) from playing dominant roles in the recruitment of middle and
senior management officers;
• the perception that both the recruitment process and the advancement procedure need
to be reviewed to ensure equity and transparency;
• perception that the Federal character principle is being abused and misapplied in re-
cruitment and transfers;
• existence of ghost workers, symptomatic of poor personnel records and flawed payroll
control system, particularly in those MDAs that are not yet part of the IPPIS pro-
gramme;
• prevalence of serious capacity gap at all levels;
• non-articulation of talent management strategy and succession planning to develop fu-
ture leaders;
• bloated workforce, reflected in phenomenal growth in number rather than in needed
skills set;
• erosion of the concept of merit;
• excessive political patronage in recruitment and promotion; and
• Inability of central human resource management agencies to innovate and provide lead-
ership in managing human resources as a strategic asset.
Equally, over the years, the Government has been making diligent efforts to overcome these
challenges. Indeed, these efforts have been the primary reason for all the reform efforts in the
civil service over the years.
8.2 National Manpower Planning

From the late 1970s, the term manpower planning gave way for Human resource as a way of
emphasising the positive view of personnel as a basic corporate resource (Pattanayak, 2010).
112
Therefore, manpower planning is also known as human resource planning (HRP). Human re-
source planning is a process of analysing an organisation’s human resource needs under chang-
ing conditions and developing the activities necessary to satisfy these needs.
At the national level, a proper and comprehensive HRP effort can help the nation identify the
skills, knowledge, and attitudes of the fresh graduates of different disciplines make a qualitative
comparison with those of other countries, have an understanding of those skills, knowledge
and attitude that are lacking and those they have in surplus. According to Ojo (2006), National
HRP also known as Macro HRP is the process of determining objectives, policies, and pro-
grammes that will develop, distribute and utilise manpower with a view to achieving a coun-
try’s broader aims of socio-economic and political development.
Macro HRP, according to Ojo (2006), is concerned with the following objectives:
• Identification of manpower needs of various sectors of the economy;

• Provision of formal education, on-the-job training, and adult education to provide the
needed skills;
• Analyse the structure of incentives and the utilisation of manpower including unem-
ployment and under-employment and ways of reducing them;
• Develop the necessary organisations and institutions that are responsible for solving
manpower problems;
• Develop management and labour techniques, improve working conditions and indus-
trial relations to ensure maximum productivity.
8.3 National Manpower Board

It was the Ashby commission that recommended the establishment of a manpower Board which
should be inter-regional in composition and function. The recommendation was considered and
approved by the National Economic Council in December 1960 and that led to the formation
of the National Manpower Board in 1962.
In 1991, through the promulgation of Decree No. 18, the National Manpower Board became
an autonomous Federal Government parastatals with the mandate to research into, advise on,
coordinate and promote the optimal development and utilisation of Nigeria human resource
(NMB, 1993).
The following are the functions of the Board:

1. To determine and advise the Government on the nation’s manpower needs in all occu-
pations;
2. To formulate manpower development and utilisation policies and programmes;
3. To co-ordinate manpower policies and programmes of federal, state and local govern-
ment;
113
4. To collect, collate, analyse and publish manpower and employment information and
data;
5. To make inputs into the:

a) formulation of policies and programmes on manpower development and utilisation
of Government agencies
b) preparation of periodic master plans for the co-ordinated development of institu-

tions of higher learning
c) formulation of training programmes by all Government agencies including minis-

tries, corporations, and government-owned companies;
d) formulation of policies governing scholarships and students’ loans tenable within

or outside Nigeria;
e) formulation of employment policies and the designing of programmes for employ-

ment generation, productivity enhancement, and skills development;
f) implementation of manpower policies and programmes relating to expatriates’ em-

ployment, the training efforts of private firms, and the participation of Nigerians in
the management of business activities.
6. To identify, in liaison with professional bodies and institutions, the stock-flow and dis-
tribution of professional manpower;
7. To organise and conduct seminars, workshops, conferences, symposia, and other re-
search and training activities; and
8. To disseminate information on manpower issues.
The Board also conducts studies on the Nigerian labour market for stocktaking and appraisal
of the manpower situations in Nigeria. The NMB is by these functions, empowered to deal with
matters relating to manpower planning, utilisation, and development in all sectors of the econ-
omy. One of the ways of accomplishing the responsibility of overseeing the manpower plan-
ning in both private and public sectors is that the Board is represented on the Governing Coun-
cil of some agencies that are vested with responsibilities of implementing specific manpower
policies, thus making contributions to the formulation and implementation of manpower poli-
cies and programmes. In other word, NMB is on the governing council of Center for Manage-
ment Development (CMD), Adminstrative Staff College of Nigeria (ASCON), Inductrial
Traing Fund (ITF), and Natational Directorate of Employment (NDE).
114
8.4 National Salaries, Incomes, and Wages Commission:
The National Salaries, Incomes, and Wages Commission, was set up to deal with issues relat-
ing to salaries and wages in the public service in Nigeria. It was expected to examine, stream-
line and recommend salary scales applicable to each post in the Public Service and to examine
areas in which rationalization and harmonization of salaries, wages and other conditions of
employment are desirable and feasible between the public and private sectors of the economy.
It is also expected to examine the current rate of retirement benefits and recommend an appro-
priate mechanism for periodic review of retirement benefits.
To achieve its objectives, the commission regularly participates in negotiations between Gov-
ernment and staff unions in the public service, where it offers technical advice during a discus-
sion about the fixing or review of compensation packages. It also carries out regular salary
inspections of ministries, departments, and agencies to ensure that the salaries and allowances
being paid by these ministries are approved by the appropriate authorities. In this way, it en-
sures that the wage bill is kept under continuous surveillance.
It has been made clear through circulars issued by the Federal Government, that all MDAs
considering a review of their salaries, allowances and other aspects of remuneration are obliged
to submit their proposals to the commission for evaluation and eventual recommendation to
the Government for approval, where necessary.
8.5 Ministry of Labour and Employment

The department of labour was established in 1942 during World War II. After the war, a general
demobilisation became necessary for the management of labour market to increase the absorp-
tion capacity of the market. This was especially in favour of the returning Nigerian soldiers
who fought in Burma and Korea (Fajana, 2002). The department of labour was changed to the
Federal Ministry of Labour in 1954, and in 1979, it became Federal Ministry of Employment,
Labour and Productivity. The ministry was later renamed Federal Ministry of Labour and
Productivity, and under the present Mohammadu Buhari’s regime, it was further changed to
Ministry of Labour and Employment.
As stated by Fajana (2002), the ministry is involved in important activities that enhance the
development of human resource management in Nigeria in the following ways:
- Guiding human resource managers and their assistants on labour matters,
- Handling disputes and registration of trade unions and inspection of their accounts,
- Keeping the register of unemployed people who are actively seeking employment,
- Factory inspections
- Collecting, collating and presentation of labour statistics,
- Ensuring compliance with labour laws
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8.6 Wages and Salaries Determination in the Public Sector
There are two major methods of wage determination in the public service; collective bargaining
through the National Public Service Negotiating Council and semi-judicial commissions and
tribunals.
The Whitley Councils were set up in the 1940s to take care of collective bargaining in the
public service and became the machinery for collective bargaining in the public sector in 1951
(Anyim, 2014). The National Public Service Negotiating Council was altered in 1996 as fol-
lows
• Council I: Association of Senior Civil Servants of Nigeria (ASCSN) for officers on GL
08 and above
• Council II: Nigeria Union of Civil Service Secretarial and Allied Workers
(NUCSSAW) for employees on GL 03 – 14
• Council III: Covers Civil service employees in Sub-Technical, Technical and Related
Cadres (GL 03 – 14); employees in Para-Medical Cadres (GL 01 – 14); Agricultural
and Related Cadres (GL 01 – 14); and employees in Government Press (GL 01 – 17).
As stated by Anyim (2014), council III deals with industrial workers in the civil service (tech-
nical, technological and related cadres) i.e. blue-collar workers, while councils I and II cover
white-collar civil servants and employees whose condition of service is controlled by the civil
service commission and the office of Head of Service of the Federation.
The use of wage commissions remains the primary method of determining the wages of work-
ers and other working conditions in the public service in Nigeria (Uzoh, 2015). Wage commis-
sions are usually set by the Government to review and make recommendations on wage struc-
tures, gradings, and relativities in the public sector. Fashoyin (2005) as cited by Uzoh (2015)
describes wage commission approach to wage determination as one under which government
appoints tribunal periodically to review and record appropriate wages and salaries and other
conditions of employment that shall apply to the public sector employees. Rather than adopt
bilateral negotiation in the determination of wages, successive governments in Nigeria prefer
the use of semi-judicial commissions for wage determination in the Nigerian public service.
This means that the collective bargaining machinery is not well established and entrenched in
the public service. The restricted use of collective bargaining as an instrument of wage deter-
mination in the public service in Nigeria has been blamed for the high frequency of industrial
unrest. The government prefers the use of wage commissions because of its unwillingness to
negotiate with workers through their unions. Government being the only employer of labour in
the public sector in Nigeria, does not want workers to have all that is due to them in terms of
benefits, hence the frequent use of wage commissions (Uzoh, 2015).
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8.7 Career Management in the Ministries, Departments, and Parastatals
There is a structured and sustained training for career advancement in the public service. Of-
ficers engage in continuous professional training and developments. The scheme of service
provides that, officers shall qualify for promotion to higher grade after acquiring the skills and
competence required for the job. It should be noted that advancement in public service is largely
based on seniority and employment is for life except cases of gross misconduct that could lead
to the determination of employment.
8.8 Performance Management System in the Public Sector

Performance appraisal is used in decisions on performance management. Annual performance
reports (APER) provides a full record of each officer’s work, conduct, and capabilities. APER
is reviewed for all officers at the end of each calendar year except for officers on Grade level
15-17, whose report is confidential. APER helps to establish the work an officer has done be-
fore and the judgment formed on that job. It helps in identifying those officers that are suitable
for appointments and promotions to a higher grade.
8.9 Promotion System in the Public Sector

Promotion in the public service usually becomes effective with the approval of Federal Civil
Service Commission, State Civil Service Commission, or Local Government Service Commis-
sion as appropriate, except where such powers have been delegated. For Federal Civil Service,
which is the focus of this discussion, all officers who are not under disciplinary action and fall
within the field of selection for any promotion are considered. The minimum number of years
to qualify for promotion for an officer on grade level 6 and below, 07 - 14 and 15-17 are two
years, three years, and four years respectively.
Promotion is based on the following criteria:

• Competitive merit from among eligible candidates.
• Record of performance at a lower grade and potential ability and competence at a higher
level.
• Seniority is considered in choosing between candidates with equal potential for promo-
tion.
• Overall satisfactory record of conduct.
The responsibility for the promotion of officers is as follows;

- GL 06 and below – Ministry/ extra ministerial office
- GL 07 – 14 – Ministry/ extra ministerial office subject to confirmation by Federal Civil
Service Commission (FCSC)
- GL 14 – 17 – by the FCSC on recommendation from ministry/extra ministerial office.
8.10 Recruitment System in the Public Service
117
Recruitment in the public service means the filling of vacancies by the appointment of persons
not already in the public service of the Federal Republic of Nigeria. This, however, excludes
the transfer of officers from other public service in the Federation to the Federal Public Service.
All appointments into the Federal Public Service shall have the authorisation from the office
of Head of Service and Supervisory Board in the case of parastatals.
For an applicant to be eligible for appointment into the Public Service, such applicant must:
1. be between 18 and 50 years
2. possess minimum qualification as may be specified from time to time
3. be certified medically fit by an authorised healthcare provider
4. possess a testimonial of ethical conduct from the last employer or from last school at-
tended if not previously employed
5. not been convicted of a criminal offense
It should be noted that all appointments must be approved by FCSC.
8.11 Summary
The chapter attempted to look at the practice of human resource management in the public
sector. The chapter started with a discussion on the general overview of public sector HR prac-
tice. It covers the role of National Manpower Planning, National Manpower Board, National
Salaries, Incomes and Wages Commission, and Ministry of Labour and Employment in HR
practice. Other areas covered include wages and salaries determination in the public sector,
career and performance management in the public sector, and concluded with the civil service
rules on promotion and recruitment in the public sector. Human resource practitioners’
knowledge of the HR practice in this sector is important as the government remains the single
largest employer of labour in Nigeria today. Therefore, the attempt made at discussing the
practice of human resource management in this sector is relevant to practitioners.
Review Questions
1. Discuss the HR challenges in Nigerian civil service
2. What do you understand by National Human Resource Planning?
3. How does National Human Resource Planning differ from Corporate Human Resource
Planning?
4. Discuss the roles of the Ministry of Labour and Employment in the development of
human resource management in Nigeria
5. What are the methods of wage determination in the Nigeria public sector?
6. Discuss the civil service rule on promotion.
118
References
Anyim, F. C. (2014). Industrial relations in Nigeria in the 21st century, Lagos, Daily Labour
Publishers
Fajana, S. (2002). Human resource management: An introduction, Lagos, Labofin and
Company
Ojo, F. (2006). Human resource management: theory and practice (reprint), Lagos, Panaf
Publishing Inc
Private Limited
Uzoh, B. C. (2015). The use of wage commissions to determine wages of public service
employees and wage-related industrial unrest: The Nigerian experience; The Journal
of Social Sciences and humanities Inventions; 2(5), 1244-1256
119
CHAPTER NINE
TALENT MANAGEMENT
LEARNING OBJECTIVES
At the end of this chapter, students should be able to:
1. have a good understanding of talent management concept;
2. define the concepts associated with talent management;
3. explain succession planning;
4. describe career management; and
5. explain career planning and development with a clear understanding of various stages
of career development.
9.0 Introduction
Organisations attempt to develop a pool of talents that will assist it to meet its goals. It is the
belief that organisations with the best hands succeed and outperform their competitors. Talent
management remains a major resourcing activity in today’s world of work. The aim of this
chapter is to look at this concept and other related issues. The chapter commenced with an
overview of talent management, which includes discussion on talent management policy and
120
talent pool selection. The chapter also covers talent attraction and retention, talent develop-
ment, career management, career planning and development, stages of career development,
career-pathing and succession planning. It concluded with a discussion on rewarding talents.
9.1 Overview of Talent Management

Quality people with entrenched interests are the key to the success of any organisation. Talent
management, according to Dessler (2011) is the automated end-to-end process of planning,
recruiting, developing, managing, and compensating employees throughout the organisation.
To some people, talent management is concerned with the high flyers in an organisation. How-
ever, as stated by Armstrong (2006), the talent process should not be limited to a privileged
few as everyone in the organisation has talent even though some have more talents than others.
Talent management refers to all the activities associated with ensuring that a company has a
competent workforce that is capable of performing the necessary actions to ensure its success.
The goal of an excellent talent management programme is to increase workplace productivity
by developing improved processes for attracting, developing, retaining and utilising people
with the required skills and aptitude to meet current and future business needs. At the heart of
an effective talent management programme is the adoption of an active management succession
plan (Lockwood, 2006).
9.2 Talent Management Policy and Talent Pool Selection

The aim of organisations is to develop and maintain a talent pool that consists of a skilled,
engaged, and committed workforce. The talent pool is populated through the attraction and
retention policies of the organisation. For example, while the attraction policies lead to pro-
grammes that will bring about opening up the organisation to the outside world, the retention
policies aim at ensuring that attracted talents remain committed to the organisation. As noted
by Armstrong (2006), the result of these policies is a talent flow that creates and maintains the
talent pool. These two policies are among the steps organisations take to make them ‘great
places to work.’ Acquisition of a great talent pool involves different processes which include;
resourcing, retention policy, succession and career planning, and learning and development.
9.3 Talent Attraction

Attraction policies describe the approach that an organisation adopts to get the talents it re-
quires. Getting key individuals that will contribute to the value-creating the capacity of the
enterprise is important for the success of the organisation. As stated by Armstrong (2006),
attraction strategy is aimed at establishing the brand image of the organisation to become an
employer of choice and to target recruitment and selection to obtain the kind of individuals
required by the organisation to achieve success.
9.4 Talent Retention
121
It is a known fact that the exit of key employees from an organisation usually has a dispropor-
tionate impact on the business. The high potential employees are always the most likely people
to leave the organisation, and each key resignation salvaged is good money earned for the
company. Therefore, efforts should be geared towards retaining talents in the organisations.
The factors that affect retention according to Armstrong (2006) include company image; re-
cruitment, selection, and deployment; leadership; learning and development opportunities; per-
formance recognition and rewards; career advancement opportunities, and security among oth-
ers.
To retain talents, an understanding of the factors that affect these categories of employees is
necessary. The manager should understand that career anchors affect the retention of employ-
ees in the organisation. For example, what will propel a young employee of under 30 years to
stay in an organisation will be different from what drives the employees above 45 years. To
retain talents in an organisation, the following actions are recommended; avoid uncompetitive,
inequitable or unfair systems, design jobs to maximise skill variety, develop commitment to
the work, encourage the development of social ties, ensure efficient selection and promotion
procedures, improve work-life balance, encourage manager or team leaders on ways to improve
talent retention.
9.5 Talent Development

Talent management is a “forward-looking” function. Not only should talent management im-
prove your organisation’s flexibility and performance, but it should also give you the infor-
mation and tools to plan for growth, change, acquisitions, critical new product, and service
initiatives. In developing talents, forward-thinking organisations are changing their strategies.
They seek strategies that deliver long-term results, minimise the risks of losing critical talent,
and ultimately save the company costs. These strategies include:
• Cultivating existing talent, help organisations keep skilled employees longer,

decrease training cost, and reduce hiring cycles.
• Improving employee satisfaction makes it possible for companies to reduce at-
trition and conserve their knowledge capital.
• Acting on performance reviews.
• Gaining talent visibility enable executives and managers to make informed de-
cisions during a talent crisis.
Talent development requires integration and communication between existing HR – L&D

(learning and development) functions. The L&D programmes must align much more closely
with the performance management and recruitment process. Training programmes should be
developed and updated to continuously address problems which surface in the performance
management process. New hires who are hired because of specific competencies should see a
122
set of training offerings which complement and reinforce those competencies. Compensation
programme should naturally be tied to the performance management process.
Equally, competency management, a misunderstood and challenging part of training and HR,
has become critical. The job description, roles, and competencies used for performance man-
agement are shared by L&D, recruiting, and succession planning. There are many techniques
for effective use of competencies. A simple best practice is for your organisation to have a
small set of consistent, easy to understand competencies that can be applied across the organi-
sation.
Due to high levels of illiteracy, many companies offer literacy training for employees in the
form of primary education. Some other organisations use competency modeling to identify the
various competencies needed for a particular occupation and then use competency training to
develop its workforce. Competency refers to the knowledge, skills, abilities, and behaviours
that are essential for successful performance. An excellent performance management pro-
gramme should help identify an employee’s weakness, and an excellent employee development
programme will then provide the training modules and work experiences needed to correct
these deficiencies.
Some organisations assign an experienced employee to serve as a mentor for new employees.
Although mentoring is usually a valuable career-development activity, a mentoring relation-
ship can be very destructive if the protégé becomes overly dependent, if the mentor resists
freeing the protégé, or if jealousy or romantic interests enter the relationship (Noe, 1988). Many
training programmes are also used to communicate information to trainees for the purpose of
changing their attitudes or altering their behaviour. This has been used to prevent sexual har-
assment, increase ethical behaviour, improve quality awareness, or reduce health hazards.
Many companies sponsor diversity training programmes that create more tolerant attitudes and
personality adjustments.
9.6 Career Management

Career management according to Dessler (2011) is the process for enabling employees to better
understand and develop their career skills and interests and to use these skills and interests most
effectively within the company and after they leave the firm. Career management ensures that
an organisation has the flow of talents it needs. It is also about how people are provided with
the opportunity to develop their abilities and their career to satisfy their career aspirations.
An essential part of career management is career planning. Career planning shapes the progres-
sion of individuals within an organisation in accordance with assessments of the organisation’s
needs, defined employee success profiles and the performance, potential, and preferences of
individual members of the enterprise. Dessler (2011) stated that career planning is the formal
process through which someone becomes aware of his or her skills, interests, knowledge mo-
tivations and other characteristics, acquire information about opportunities and choices, iden-
tifies career-related goals; and establishes action plans to attain specific goals.
123
Armstrong (2012) opined that the aim of career management to an organisation is to meet the
objectives of an organisation’s talent management policies which are to ensure that there is a
talent flow that creates and maintains the required talent pool. For the employee, career man-
agement policies aimed at:
i. Giving employees the guidance, support, and encouragement they need to fulfill their
potential and achieve a successful career with their talents and ambitions.
ii. Providing those with promise, a sequence of experience, and learning activities that will
equip them for whatever level of responsibility they can reach.
Career management activities according to Hirsh and Carter (2002) includes recruitment, per-
sonal development plans, lateral moves, special assignments at home and abroad, development
positions, career bridges, and support for employees who want to develop.
9.7 Career Planning and Development

The responsibility for career planning belongs to everyone. If wishes were horses, beggars
would ride. Finding a job does not just happen; individuals must make it happen through a
careful process of assessing one’s abilities and interests, becoming aware of job opportunities,
preparing an effective resume, locating job openings, interviewing with prospective employers,
and then evaluate the job offers. When the individual eventually gets the job and becomes an
employee, the responsibility shifts to that of career management. Employees, just like the em-
ployers are expected to manage their career through personal branding by proving their worth
through competent performance and then make sure that they get proper credit for their contri-
butions. Excessive bragging and arrogance are not appropriate; advertising one’s contributions
is best when it is done by others (Hyatt, 2010).
Career development programmes help people to continue to grow and develop after they have
been employed. Career refers to the sequence of work-related experiences individuals acquire
during the span of their work lives. Some people follow a very well-defined career path that is
generally referred to as career ladder – for example, accountants and lawyers join an accounting
or law firm and progress systematically from junior to senior partners. Others have very disor-
ganised careers, characterised by changes from one organisation to another or by moves into
different occupations. Others experience career lattice which involves advancing to higher lev-
els within an organisation, but accompanied by occasional lateral movements to different oc-
cupations or departments.
A career plateau occurs when the probability of a person moving up the organisational ladder
is very low. There are three kinds of the plateau: structural, content, and life. Companies can
help employees cope with career plateau by providing opportunities for lateral growth when
opportunities for advancement do not exist. This is important as almost everyone faces a career
plateau at some point during his or her working life.
124
The objective of career development is to help individuals achieve maximum self-development
and to improve the organisation achieve its objectives. For the individual, some of the benefits
of career development include a better job, more money, more significant responsibility,
greater mobility, improved skills, increased satisfaction, higher exposure and visibility to top
management and much more. For organisations, they are better able to identify future managers
and prepare them to achieve organisational goals. In overall, every organisation should help
employees plan their careers benefits directly through lower turnover and personnel costs (Gil-
ley, 1988).
9.7.1 Stages of Career Development

Creating useful career-development programmes requires an understanding of career stages
and interests relevant to each step. Several models have been developed to describe the career
stages through which individuals’ progress. Three of such models are briefly explained below:
Erikson’s Life Stages Model, which is developed by Erik H. Erikson, explains that individuals
must pass through eight developmental stages on their way to complete maturity (Erikson,
1963). The first four stages – oral, anal, genital, and latency – describe childhood development
while the last four steps are; adolescence, young adulthood, adulthood, and maturity. Accord-
ing to Erikson (1963), individuals behave differently depending on which developmental stages
they are in and how well they have resolved the crises and tasks of earlier stages.
Working Careers Model identified four career stages: exploration (when individuals are com-
pleting school, solidifying their career choices and searching for their first employment), es-
tablishment (when individuals strive to create a permanent position within their chosen occu-
pation), maintenance (when individuals try to protect themselves and secure their positions
within the organisation) and decline (when individuals approach the end of their employment
years and enter retirement).
Professional careers model also identifies four career stages: apprentice (typically new em-
ployees who have recently completed their professional training and must now learn to work
under the direction of a supervisor), independent contributor (when professionals begin to
demonstrate the ability to follow directions and perform professional activities in a competent
manner), mentor ( where individuals are now involved in training and directing the work of
others) and sponsor ( when individuals are currently involved in making strategic decisions
that guide the organisation and shape its direction). This approach focuses specifically on pro-
fessionals like engineers, accountants, and lawyers (Dalton & Thompson, 1986).
These models provide a frame of reference through which organisational events are interpreted.
9.8 Career Pathing

Career paths are the routes people take to advance their careers within a job family and to
develop career opportunities in other career families in an organisation (Armstrong, 2012).
Career pathing involves identification of logical and coherent progressions of jobs that an in-
dividual might choose to pursue. Career paths evolved to provide direction to the career pro-
gression of the talents in an organisation. In some organisations, a committee reviews the
125
strengths and weaknesses of each manager and then develops a five-year career plan for each.
An effective career path process should be multi-faceted, support each step in the talent man-
agement cycle, and align a workforce to the company’s future state. In the same way, well-
crafted career paths can play a pivotal role in driving organisational change and building work-
force capability (Cao & Thomas, 2013).
Cao and Thomas (2013) further stated that employee career pathing would be most effective if
it is integrated into a company’s overall talent management strategy. By aligning talent man-
agement processes and providing linkage between job roles, desired competencies, and key
experiences, career paths direct employees towards the company’s future competitiveness. Ca-
reer pathing forms the basis for placement, transfers, and rotations so that talents are prepared
for higher responsibilities progressively and the experience they gain becomes cumulative ra-
ther than repetitive. As noted by Pattayanak (2010), it is aimed that ten years of experience
should be substantial ten years experience and not one year’s experience repeated ten times.
9.9 Succession Planning

Succession planning is the process that ensures the stability of tenure of personnel. It is perhaps
best understood as an effort designed to provide the continued effective performance of an
organisation, division, department or workgroup by making provision for the development,
replacement and strategic application of key people over time. Succession planning can be
defined as the process of assessing and auditing the talent in the organisation to answer three
fundamental questions; (i) are there enough potential successors available? Are they good
enough? And do they have the right skills and competences for the future? It is a means of
identifying vital management positions, starting at the lowest level of management and extend-
ing up to the highest position in the organisation.
Succession planning also describes management positions to provide maximum flexibility in

lateral management moves and to ensure that as individuals achieve greater seniority, their
management skills are broadened and become more generalised in relation to total organisa-
tional objectives, rather than be limited to purely departmental objectives. It is a deliberate and
systematic effort by an organisation to ensure leadership continuity in key positions, retain and
develop intellectual and knowledge capital for the future, and encourage individual advance-
ment.
Succession planning occurs when an organisation adapts specific procedures to ensure the iden-
tification, development, and long term retention of talented individuals. Succession planning
should, however, not stand alone but should be paired with succession management. Succes-
sion planning is not limited to solely management positions. It should also address the needs
for critical backups and individual development in any job category.
The objectives of succession planning include:
i) Matching the organisation’s available (present) talent to its needed (future) talent.
126
ii) To help the organisation meet the strategic and operational challenges facing it by
having the right people; at the right places; in the right times; to do the right things.
iii) Ensuring the continued cultivation of leadership and intellectual talent and to man-
age the critically important knowledge assets of organisations.
iv) To be proactive in terms of ensuring the continuity of leadership by cultivating tal-

ent from within the organisation through planned development activities.
9.10 Career Counselling

Most organisations provide some form of career counseling: during employment interviews,
when employees are first hired, during annual performance-evaluation interviews, and as a part
of the special career counseling which occurs in the day-to-day relationship between a super-
visor and a subordinate or between an employee and organisation’s career counselor.
9.11 Dual Careers

Some technical specialists want to advance their careers, but they do not want to move into
management where they can have greater power and more decision-making authority. Dual
career ladders are therefore created in the organisation to allow such individuals to move up
while maintaining their technical specialty and autonomy in practicing their profession.
9.12 Rewarding Talent

Rewards can be anything that attracts talents attention and stimulates an individual to perform.
Rewards, according to Pattanayak (2010) have five aspects that should be taken care of; the
value of reward, amount of rewards, the timing of awards, the likelihood of rewards, and their
fairness. Without adequate compensation, it may be difficult to retain current talents as they
are likely to leave the organisation, and equally, it may be difficult to attract new talents. Ef-
fective compensation helps an organisation attract, maintain, and retain talents.
In rewarding talents, attention should be given to designing the reward system in such a way
that it provides financial and psychological reliefs to the talents. This will motivate the talents
to contribute to the organisation’s growth and survival. Whether rewards for talents come in
the form of salary, incentives, and/or benefits, the basic aim should be to attract and retain them
to achieve organisational goal.
9.13 Summary
The chapter explored the concept of talent management and other related issues. The chapter
commenced with an overview of talent management, which includes discussion on talent man-
agement policy and talent pool selection. The chapter also covered talent attraction and reten-
tion, talent development, career management, talent career pathing, and succession planning.
We examined who should be responsible for career planning and development.
127
Research models examining the relationship between different career stages and performance
were also considered in addition to different talent management practices in organisations. It
concluded with rewarding talents. A sound understanding of talent management is crucial for
HR practitioners, as it remains a major resourcing activity in today’s world of work.
Review Questions
1. Discuss your understanding of the concept of talent management.
2. What is succession planning?
3. An important part of talent career management is career planning. Discuss.
4. What are the different stages of career development?
128
References
London, Kogan Page
Lockwood, N.R (2006). Talent Management: Driver for Organizational Success; Research
Quarterly, Society for Human Resource Management.
Noe, R. A (1988). An Investigation of the Determinants of Assigned Mentoring Relation-

ships; Personnel Psychology, Vol. 41.
Hyatt, J. (2010). Building Your Brand. Fortune; pp.71-76.
Gilley, J. W (1988). Career Development as a Partnership; Personnel Administrator, Vol. 33;

pp.62-68.
Erikson, E. H (1963). Childhood and Society (2nd ed); Norton, New York.
Dalton, G. W. & Thompson, P.H (1986). Novations: Strategies for Career Management;
Scott, Foresman, and Co., Glenview, IL.
Cao, J. & Thomas, D. (2013). When developing a career path, what are the key elements to
include? Retrieved 22/01/2017 from Cornell University, ILR School site:
http://digitalcommons.ilr.cornell.edu/student/43/
Dessler, G. (2011). Human resource management (12th ed.) New Jersey, Pearson education
inc.
Hirsh, W. & Carter, A. (2002). New direction in management development; Paper 387,
London, Institute of Employment Studies
Private Limited.
129
CHAPTER TEN
EXPATRIATE MANAGEMENT
LEARNING OBJECTIVES:
1. explain the policies and practices involved in managing personnel across countries;
2. define expatriates, expatriate quota, and the various processes and procedure for ob-
taining expatriate quota;
3. explain the factors to consider in expatriate’s recruitment and compensation administra-
tion;
4. explain the roles of the Nigerian Immigration Service, the Ministry of Interior and other
governmental agencies in the regulation and control of EQ;
10.0 Introduction
Due to the increasing rate of trade between countries both in goods and technical expertise,
triggered by globalization, the management of expatriate has been an important subject of re-
search in the field of international business. Nearly all business is now international business
and almost every company, no matter how small or localised, is in some way impacted by
international business. In Nigeria, the expatriate population has grown over the years, thereby
raising significant concerns amongst HR professionals & managers as regards its effective
management. It is also fast becoming a key criterion for the selection of HR professionals into
vacant job roles in some organisations as human resource managers are now expected to be
aware of the cultures and working conditions of other nations. The growing expatriate popula-
tion is most noticeable in the oil and gas sector of the Nigerian economy.
Chew (2004) emphasizes that, to develop effective expatriate management, it is necessary to

plan three strategic actions. There are three fronts to expatriate management: (1) selection of
the right people to work as expatriates on overseas assignments. (2) preparation of the selected
employees to face their challenge abroad, and (3) preparation of return policy for when expat-
riates are brought back to their home country.
130
The organisation must develop and maintain a culture of selecting the right people for the job.
The workers must be tolerant of the culture and tradition of other people they are to work with.
The organisation should prepare expats for culture shock through acculturation. Chosen expats
should be able and ready to meet the challenges of changing terrain and must be able to meet
their job challenge no matter the constraint. When their time is done, offshore expats should be
willing to return to their motherland without force.
The organisation should put in place policies to guarantee the conditions stated above to avoid
problems with the host country.
10.1 Expatriate Management Policy

Because of the complex and challenging nature of managing expatriates, it is important to de-
velop clear-cut policies that will guarantee its effective management. Expatriate policy, some-
times referred to as Long Term International Assignment Policy refers to the totality of the
policies, terms, and conditions governing international assignment. It may also be used to de-
scribe the whole of the terms and conditions that govern expatriate employment in an organi-
sation. The document that contains these terms and conditions is usually referred to as the
Expatriate Policy Handbook which clearly defines the terms and conditions of international
assignment as well as states the rights and obligations of both parties in the contract (Atilola,
2016).
10.2 Determination of Expatriate Roles

Employees are sent on international assignments for several reasons which might include;
i. Business expansion across international borders
ii. Knowledge and technology transfer
iii. Career development of assignees
iv. Employee International and exchange programme
v. Dearth of relevant expertise in the host country
vi. To establish the home company’s culture in subsidiaries located outside the home
country.
According to the Nigerian Immigrations Act 2015, organisations – foreign or local, desirous of
carrying out business activities in Nigeria must obtain the consent of the Ministry of Interior in
writing. In the same vein, the consent of the Controller General of Immigration (CGI) must be
received by any foreign nationals with skills and expertise not available in Nigeria.
The role of expats is to follow the policies that the employers have laid down concerning their
management abroad.
They are to surrender to the checks and regulations of the host community/country as stipulated
by the rules of the employer. In any case, an expat is not expected or required by the employer
131
to interfere in the documentation or the diplomatic relations between the host community and
his/her employer.
For the purpose of clarity, it is important to attempt the definitions of some related concepts as
below:
1. Expatriate is a term used to describe any employee, irrespective of nationality, who at
the instance or volition of his/her employer is transferred over a specific period from
his original country of employment to another. Such an individual might be a citizen of
the country where he/she works provided he was originally employed in another coun-
try and posted to his country of origin. In summary, Expatriates are employees who are
assigned to work for the home company in another country.
2. Virtual Expatriates is the term used for some expatriate managers who do not want to
relocate to their new assignment and choose instead to live at home and work long
distance. These managers use email, videoconferencing, telephones, and occasional
trips to maintain contact with their assigned staff and gather relevant information.
3. Home Company refers to the parent company or the business entity in the Home Coun-
try, where the employee was originally employed before being posted on an interna-
tional assignment.
4. Host Company refers to the business entity in the host country where the prospective
expatriate is to carry out his/her work assignment.
5. Home Country refers to the country where the employee and prospective expats were
originally employed. It is the country where a company is headquartered.
6. Host Country refers to the country where the employee is sent on an international as-
signment. It is the country where a subsidiary is located.
7. Local Nationals also called ‘locals’ or ‘host-country nationals’ refers to the residents
of the host country who are employed by a multinational company to work in their own
country. Local Nationals may also be citizens of another country living in the host
country who apply for employment with a multinational company. Such employees are
treated like workers hired locally.
8. Expatriate Localization refers to a situation where an expatriate chooses to obtain

permanent residency of the host country and continues to work for the host company
without any significant changes to his conditions of employment. Some organisations
encourage expatriate localization as a matter of policy for cost reduction.
9. Expatriate Policy refers to the totality of policies, terms, and conditions that governs
expatriate employment in an organisation.
132
10. Expatriate Handbook refers to the document containing expatriate policies.
10.3 Expatriate Quota

Expatriate Quota is a permit. The statutory responsibility of granting approval for a business
permit and the expatriate quota is vested on the Federal Ministry of Interior. The Business Unit
in the Ministry of Interior is saddled with the responsibility of screening and approving requests
for a business permit and expatriate quota. The Ministry determines the number of quota slots
or vacancies to be approved for any given company and the designations, after fulfilling stipu-
lated conditions. The quota validity period is also specified for every approval granted.
Preliminary/General Requirements for Obtaining Expatriate Quota/Business and Resi-

dence Permits in Nigeria
Companies with a paid-up share capital of not less than 10,000,000 are entitled to one automatic
expatriate quota position, while companies with paid-up share capital of over 20,000,000 are
entitled to four automatic expatriate quota positions. Expatriate quotas are usually granted for
a period of between 2 – 3 years at the discretion of the Minister for Interior and are subject to
renewal upon expiry. The quota is issued to the company and not the expat. Hence, when the
expat completes his/her assignment and leaves, the quota reverts to the company.
Types of Expatriate Quotas

1. Permanent Until Renewed (PUR) Quota: are quotas granted on special dispensation
basis and meant to be occupied by specific employees on a permanent basis (e.g., the
chairman of the company’s board of directors, and the managing director). A PUR is
usually granted with the issuance of a certificate specifying the position covered by the
quota.
2. Temporary Quota: refers to quotas granted for positions that are occupied on a tem-
porary basis. These positions are usually stated on the permit, and the expatriate’s qual-
ifications must be at par with the designation.
The organisation requesting permanent expatriate quota in Nigeria must forward an application
to the Ministry of Interior with the following documents:
i. Duly completed NIPC form
ii. A copy of the company’s certificate of incorporation
iii. A copy of Form CAC2 (Allotment of share capital)
iv. A copy of Form CAC7 (Particulars of Directors)
v. A copy of the company’s Memorandum and Article of Association
vi. Monthly returns of EQ (if any)
vii. Detailed audited account
viii. Company’s organisational structure
133
ix. Individual income tax certificates of the expatriates
x. Corporate tax clearance
The following are requirements for obtaining Temporary Expatriate Quota:

i. Duly completed NIPC form
ii. A copy of the company’s certificate of incorporation
iii. A copy of Form CAC2 (allotment of share capital)
iv. A copy of Form CAC7 (particulars of directors)
v. A copy of the company’s Memorandum and Article of Association
vi. Certificate of capital importation
vii. Tax clearance certificate
viii. Evidence of acquisition of business premises
ix. Feasibility report
x. Technical services agreement or joint service agreement
xi. Business permit (if the sponsor company has foreign ownership)
xii. Company profile
xiii. List of positions to be occupied by the expatriates including proposed annual sala-
ries, job descriptions, and qualifications
xiv. Evidence that personnel required are not likely to be available in Nigeria
xv. License permits from relevant government body for the operation of the project
xvi. Proof of work at hand, duration of such work and value attached to contract(s) if
the company is engaged in building, civil engineering, and construction
Expatriate Quota Renewal

EQ is to last for between 2 – 3 years. Therefore, companies requesting renewal may apply after
the expiration of the existing one subject to the discretion of the Ministry of Interior and subject
to the submission of the following documents:
a. A completed immigration form T1
b. EQ returns for the three months preceding the date of the application for renewal
c. Copy of the corporate tax clearance certificate
d. Copy of the current tax clearance certificate of the expatriates
e. Detailed training programme for Nigerians
f. List of Nigerians understudying expatriate showing date employed and qualifications
g. List of Nigerian senior/management staff showing name designations, qualifications
and salaries per year
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h. Current audited account
Expatriate Re-designation Application

An organisation intending to apply for re-designation of an EQ must apply to the FMI. The
following documents are to accompany such application:
1. Copy of the certified copy of the EQ
2. Copy of the employee’s letter of employment
3. Copy of the letter of acceptance of employment by the employee
4. Resume of employee
5. Copy of university professional qualifications
Methods of processing CERPAC

An application requesting for regularisation of combined expatriate residence permit and aliens
card (CERPAC) is made to the Controller General of Immigration (CGI) accompanied with
the following documents:
a. Employee’s international passport with subject to regularise (STR) visa
b. Duly filled CERPAC statutory form
c. STR package containing STR documentation received from the Nigerian Embassy or
Consul
Temporary Work Permit (TWP)

Application for TWP on behalf of an expatriate engaged for short term assignment would be
made as usual to the CGI for approval. All such applications are submitted at the Nigerian
consul or embassy where the expatriates reside and must be referred to the CGI for approval.
The following temporary assignments are covered under such approval:

• Erection installation work
• Feasibility studies
• Repairs of machinery/equipment
• Auditing and accounts
• Research work and such other assignments as may fall into this category
• Any other assignments that are temporary
Documents required for processing TWP are the same as those required for processing perma-
nent EQ. A key exception is the requirement of the provision of the expat’s data page of inter-
national passport (with at least six months’ validity), expats resume, copies of expat’s univer-
sity degree /professional qualifications, approval visa fees paid, etc.
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10.4 Expatriate Recruitment
Expatriates are often employed in Nigeria to take up managerial, technical and supervisory
functions, especially in areas where there is a dearth of required expertise amongst Nigerians.
The most common criteria for selection of expatriates are professional and technical skills;
however, technical expertise is usually not as important as cross-cultural skills in achieving
success. Some roles commonly taken by expatriates include marketing, production, finance,
data processing, and some other sensitive roles. Organisations are at liberty to employ or deploy
expatriates to Nigeria, provided they comply with the laid down rules and regulations regulat-
ing expatriate employment in Nigeria.
The most commonly used criteria in selecting expatriate managers are (a) demonstrated per-
formance in similar jobs, (b) specific knowledge, (c) general perceptiveness and grasp of prob-
lems, (d) leadership skills, (e) administrative skills, (f) willingness to accept overseas assign-
ments, (g) knowledge of the company, (h) reputation, (i) past performance in overseas assign-
ments, and (j) ability to work with foreign employees. Orientation and training are necessary
for helping expatriates, and their families prepare for their international assignments, and such
training often includes language classes, when applicable, as well as customs and culture of the
country. Pre-assignment trips to the country with spouse and children can be beneficial in the
family’s initial adjustment to the new situation.
Recruitment of expatriate in Nigeria is becoming more and more complicated due to the spate
of criminality and insecurity. Nigeria is no longer a destination of choice for expatriates. Ac-
cording to Atilola (2016), overseas assignment including employment and retention of expat-
riates are usually costly hence needs to be done correctly. The earning power of expatriates far
outweighs that of local hires, and their employment arrangements are also traditionally associ-
ated with a lot of costs which includes the cost of hiring and cost of obtaining relevant immi-
gration clearances such as expatriate quota, work and residence permits.
Mismanagement of the expatriate engagement often at times leads to disputes, which usually
affects the productivity of the expats. Unaddressed policies may create employee relations
problems and conflicts that may sometimes result in lawsuits. Expatriate employment contract
usually contains provisions for their relocation or repatriation, which add to the labour costs.
10.5 Compensation and Benefits for Foreign Nationals and Expatriates

Developing international compensation policies requires consistency with overall corporate
strategy and structure of a multinational corporation. The policy must be competitive and take
into account incentives for foreign service, tax equalization, and reimbursement of ex-
penses. Other factors that determine whether or not the compensation package will be accepta-
ble to the potential expatriate are social security, health, and medical benefits, and cost of living
factors in the foreign location.
Wage levels and benefits differ considerably from country to country, but individual wage de-
cisions are almost universally determined by performance and seniority. It is expensive to
136
maintain an executive in another country. Such foreign assignments will typically attract addi-
tional compensation in the form of special expatriate allowances. These allowances are often
as much as three or four times the executive’s base salary, and they become quite complicated
because of tax considerations.
Increasingly, companies are adopting the compensation practice of localising employees who
are working on assignments in other countries. Localising refers to converting an international
employee’s remuneration package to one that is essentially identical to regular full-time em-
ployees at that location, which encompasses base salary, incentive payments, equity plan par-
ticipation, perquisites, and retirement benefits. Localising typically occurs gradually as the as-
signee adjusts to living in the local economy without expatriate allowances.
Compensation plans for expatriates are usually complicated and expensive because of taxes,
allowances, and premiums. A cost-of-living allowance is often given to employees who are
assigned to live in another country to equalise the costs of living in both the host and home
countries, especially if the cost of living in a host country is more than that of the home country.
In many countries, housing allowances have become the single most expensive item in expat-
riate compensation packages.
Some firms add a fixed housing cost to an expatriate’s monthly income and let the executive
pocket the money if less expensive housing can be found. Cost-of-living adjustments must be
frequently reviewed because of exchange rate fluctuations and inflation.
10.6 Expatriate Knowledge Transfer

Expatriate knowledge transfer is guaranteed under the Nigerian Oil & Gas Industry Content
Development Act 2010 (popularly known as the Local Content Act). The Act was signed into
law on 31st April 2010 and it seeks to increase indigenous participation in the oil and gas in-
dustry by prescribing minimum thresholds for the use of local services and materials and to
promote the transfer of technology and skill to Nigerian staff and labor in the industry. Sections
10(1) (b), 28(1), 31(1) and 33 (1) of the Act mainly regulates expatriates’ employment in Ni-
geria.
The main highlights of these sections are as follows;
i. Nigerians must be considered first for employment into any position should there arise
the need for employment into such positions
j. Expatriate can only be employed if no Nigerian is found capable of taking up the posi-
tion
k. Where an expatriate is employed, a Nigerian must be made to understudy and replace
him in four (4) years.
This requirement on expatriate employment, however, does not include the 5 percent manage-
ment positions for expatriates an organisation is allowed to retain to cater for investor’s interest
under the Act.
137
According to Yu-Shan H. (2012), expatriates and host country nationals serve as boundary
spanners. Expats on a mission to other countries apart from rendering services to their host also
transfer knowledge and skill to their host country, this they do, through the host country’s per-
sonnel. To do this, they have to break barriers that may impede the transfers. These may include
language, religion, culture. Expats are expected to be taken through cross-cultural training to
beat these challenges.
10.7 Attaché (Understudy) to the Expatriate

Section 28(1) of the Act stipulates that “Nigerians shall be given first consideration for em-
ployment and training in any project executed by any operator or project promoter’. Yu-Shan
(2012) explains that the understudy to the expat must be open-minded and his competencies
must be in line with global human resources practice. He outlines four positive indicators of an
individual that can work with an expat as: (1) Personal qualities such as intelligence and net-
working behaviours, (2) The organisation practice with which he has been trained, (3) His per-
sonal influence as an enabler, (4) Ability to assimilate and transfer knowledge.
The Act requires that the Nigerian content plan submitted by the operator or project promoter
shall include an employment and training plan. Section 30 and 31 also make it an obligation
on operators to provide training to Nigerians where Nigerians are not employed because of lack
of training and to provide a succession plan for a Nigerian to understudy an expatriate for a
maximum period of 4 years. Section 32 stipulates that the expatriate workforce for an operator
or project promoter is limited to a maximum of 5% of its management positions as may be
approved by the Board. The Act in Section 34 requires that a “labour clause be inserted in
“projects or contracts” mandating the use of a minimum percentage of Nigerian workers as
may be stipulated by the Board.
138
10.8 EXPARIATES KNOWLEDGE TRANSFER MODEL
Source: Onijingin, ( 2013), Knowledge transfer between expatriates and local employees: is-
sues for human capital development in Nigeria.
10.8 Adjustment of Expatriate’s Spouse and Family

The success of most expatriates depends more on the ability of the expatriate’s family to adjust
to a new culture than on the skills of the expatriate. Several factors should be considered in
139
helping expedite the family’s adjustment to a foreign assignment. Such include: (a) The
spouse’s career – some companies provide jobs for expatriates’ spouses or help them find work
elsewhere in the new country, (b) Family living accommodations – must be safe, comfortable
and secure, (c) The children’s education – when local schools are not appropriate, private teach-
ers or tutors must be identified, (d) Health and dental care –locating adequate health care facil-
ities for expatriates and their families particularly in underdeveloped countries is important.
The most frequently reported reason for expatriate failure is the family’s inability to adjust to
the new country and culture.
10.9 Expatriate Returns

The Immigration Act of 2015 makes provision for submission of EQ monthly returns by the
corporate body, failure of which would attract a fine of N3, 000.000.00 (three million naira).
Whilst the individual responsible for the offense liable, on conviction, to a fine of N1,
000.000.00 (One Million Naira).
By legislation, therefore, companies employing expatriates are expected to file expatriate quota
monthly returns to the Nigerian Immigration Service (NIS) Command Headquarters in Abuja
and respective states and zonal commands. The primary purpose of this requirement is to enable
the NIS to monitor the movements of expatriates and the use of the expatriate quota. Failure to
keep up with this requirement could hinder a company’s chances of getting approval for the
renewal of expatriate quota. The monthly returns are also useful for tax purposes as it deter-
mines the residency of the expatriate employee.
10.10 Expatriate Repatriation

Repatriation generally refers to the termination of an expats overseas assignment and subse-
quent return to the home country or to the country where the head office of Sponsor Company
is located (Atilola, 2016). The common reasons for the repatriation of expats include; termina-
tion of employment, dismissal, deportation, resignation from employment, expiration of the
period of posting, and reassignment.
Where the expat employee has completed his assignment in Nigeria or the assignee’s employ-
ment has been terminated, the HR department must ensure that the Controller General of Im-
migration is duly informed as well as commence deregistration of the expat employee from the
company’s expatriate quota position.
The documents required for this process include; application form, copy of flight itinerary,
copy of the resident permit, and affidavit of departure from Nigeria. Having completed the de-
registration of the repatriated employee, the company will, therefore, be expected to delete the
expatriate’s name and details from subsequent expatriate quota monthly returns.
140
Many returning expatriates report that the reverse culture shock they experience coming home
is more intense than the culture shock they experienced when they first began the foreign as-
signment. Returning expatriates often feel out of place in the home office as they are not fa-
miliar with new members of the staff. Usually, their old office has been occupied by someone
else, and a few people seem to appreciate the magnitude of their expatriate experience. So, for
returning expatriates to feel valued and challenged, they must be given new, equally difficult
assignments.
To avoid the severe problems of repatriation, some companies use shorter assignments abroad.
Employees can work as members of a virtual team from their home country and only travel
abroad when it is necessary. These alternative assignments are sometimes referred to as com-
muter assignments, extended business travel, or rotational assignments.
10.11 Expatriate Contract

The expatriate contract is a formal and legal expression to employ an expat. A contract is a
form where the terms and conditions are contained. It usually includes the schedule which sets
out numerous details concerning salary, start date, benefits. Like every other employment con-
tract, the expatriate contract will typically include: (a) appointment, (b) duties of the employee,
(c) contract period, (d) travel entitlements, (e) salary, (f) accommodation, leave and other ben-
efits, (g) termination and dismissal clauses, (h) overtime, (h) confidentiality and non-competi-
tion clauses, (i) taxation, (j) governing laws, (k) conditional and other agreements
10.12 The Role of Nigerian Immigration Service (NIS)

All approved requests for expatriate quota are endorsed to the Comptroller General of Immi-
gration Service. This is for the reason that the Nigeria Immigration Service, being a quasi-
independent agency under the supervision of the Ministry of Interior, is statutorily authorized
to administer and regulate all approved expatriate quota.
In regulating the expatriate quota system, it is the duty of Immigration Service to ensure that
companies adhere strictly to the approved terms, including the employment of the approved
number of qualified foreigners in the appropriate positions. The monitoring of quota utilization
by Nigeria Immigration Service is targeted at preventing any company from employing for-
eigners beyond the approved numbers and that the right calibres of expatriates are engaged for
approved positions for the specified period.
10.13 The Role of the Nigeria Customs Service (NCS)

Once the ministry of interior has granted access to expats and the immigration service has
granted them entry visa and work permit, the Nigeria Customs Service is saddled with the
responsibility of ensuring their safe passage into the host community.
However, their working tools must be consistent with their field of work to maintain the inter-
nal security of the host country.
10.14 The Role of Ministry of Interior

141
Interior ministry (sometimes ministry of internal affairs or ministry of home affairs) is a gov-
ernment ministry typically responsible for policing, emergency management, national security,
supervision of local governments, the conduct of elections, public administration and immigra-
tion matters. The ministry is often headed by a minister. In some countries, issues relating to
the maintenance of law and order and the administration of justice are the responsibility of a
separate justice ministry.
In countries with a federal constitution, an Interior Minister will often be found at both the
Federal and Sub-National levels. Similarly, autonomous entities and dependent territories may
also have Interior Ministers.
Review Questions
1. Attempt a definition of the following terms:
(i) Expatriate
(ii) Expatriate quota
(iii) Expatriate return
(iv) Expatriate policy
2. Explain the roles of the Nigerian Immigration Service and the Ministry of Interior in
the regulation of expatriate quota in Nigeria
3. Identify and explain the various statutes that provide legal backing to the regulation
and management of expatriate quota in Nigeria
4. Explain the differences in the following terms:

(i) Home country vs. host country
(ii) Host company vs. home company
(iii) Parent country
(iv) Local nationals
5. List the critical items in an expatriate employment contract
6. List the documents required for the processing of expatriate quota
7. Explain the various types of permits that can be used by an expatriate
8. Explain measures that can be put in place to ensure proper adjustment of expatriate’s
spouse and family.
142
References
Bimbo A. (2016). Managing expatriates in employment, legal, HR, and tax perspectives.
Hybrid Consult Lagos
143
Onijingin, K ( 2013), Knowledge transfer between expatriates and local employees: issues for
human capital development in Nigeria, PhD Thesis,
Yu-Shan, H. (2012). Knowledge transfer between expatriates and host country nationals:
A social capital perspective. Theses and dissertation, University of Wisconsin Milwau-
kee.
Nigerian Oil & Gas Industry Content Development Act 2010 Nigerian Immigration Act,
2015
CHAPTER ELEVEN
HUMAN RESOURCES BUSINESS PARTNERSHIP
144
1. explain the essence of human resource management (HRM) in any business undertak-
ing
2. understand that credible human resource availability is relevant to overall organisation
corporate plan.
11.0 Overview of HR Role in Business Management

HR management is pervasive and ubiquitous in every business life, no matter how small. As
long as humans are involved in any activity, there is a need for organisation and coordination
of units of jobs/tasks into a system. Summarily, the line and staff sections in an organisation
are coordinated through the corporate and human resource strategies of an organisation to pro-
duce a business strategy, which is in turn used for the achievement of business goals.
11.1 Alignment between HR Strategy and the Business Strategy

Strategic human resource entails making plans for current and future manpower needs. Busi-
ness strategy is a plan which explains how an organisation plans to achieve its short, medium,
and long term goals by sourcing and allocating resources in the right quantities. A business
strategy is a summary of how your business plans to achieve its goals and objectives, improve
and sustain its position in the industry, and this includes integrating the activities of other de-
partments.
The synergy between the two is presented in the objectives of the organisation and maybe
broken down into goals to simplify the direction of the mission of the organisation. To be suc-
cessful, HR executives need to develop collaborative client relationships as a way of enhancing
their image and credibility (Fotio & Glaxgow, 2014). For example A company that aims to be
the market leader in noodles production strategise on how to get more qualified workers, ma-
chines and best flour and also considers the best branding method, marketing, and sales strate-
gies and all these functions are to be handled by humans. These are what the company does in
an attempt to keep its current customers while trying to attract new ones.
some key contributions of the HR Business Pertners at Management Meetings

1. Highlight HR implications on every business decision
2. Advise on best practice on people and process matters
3. Offer advice on business strategies and focus from HR perspective
4. Guide Management on HR Policy implementation on business reputation
5. Provide timely and key information on people matters for balanced decisions
6. Provide guidelines on Corporate Performance Measurement
7. Provide guidelines on Staff Performance Management system
8. Report HR activities for Management information and guidance.
9. Play Employee Advocacy role
10. Clarify key HR issues
11. Avenue to update and guide line managers in handling staff matters
12. Provide management tools for strategies, processes and decision making
11.2 HR Business Partnership

145
HR business partners are HR specialists that work closely with an organisation’s executives to
develop an HR agenda that firmly supports the overall aims of the organisation. Business part-
nering uses the relationship between executives of the firm and their access to the business of
the firm to improve the status of the organisation majorly in the long run. HR managers help
their departments build more credibility in the organisation by belonging to the senior leader-
ship team. Some do this by discussing the impact of senior leadership initiatives on personnel
and by recommending how those initiatives could be implemented more effectively by address-
ing staff needs.
Popularized by academic and consultant David Ulrich, HR business partnership is a modern

way of growing businesses in contrast to the secretive and primitive form of making business
plans and taking decisions, which often result in avoidable operational blunder.
The three-legged stool model for the organisation of the HR function was derived from Ulrich
works.
He divides the function into the following three parts:

1. Centre of expertise: which specialises in the provision of high-level advice and ser-
vices on crucial HR activities. Some of these areas include training and development,
recruitment, reward, and employee relations.
2. Strategic business partners are specialists that work with line managers to help them
reach their goals through effective strategy formulation and execution. They are then
domiciled in business units and departments.
3. Shared service centres are responsible for handling all the transaction services across
the business, which includes recruitment, absence monitoring, disciplinary issues, etc.
Communication skills are essential for HR business partners as they need to communicate the
financial value and future worth of person-centered HR policies to the company’s leadership,
as well as communicate high-level decisions down to other members of the HR department and
the whole organisation. HR business partnering is becoming more popular as organisations
become people-focused and see the value in aligning agendas toward a common goal. Recently
there has been a ‘breakdown of traditional silos’ and greater collaboration between depart-
ments, such as HR and marketing.
The importance of HR business partners cannot be overemphasised. HR business partners re-

main the most effective means of connecting HR departments to other functions. Also, because
of their experience in senior positions, they are in the best position to communicate effectively
with other top management.
11.3 HR as Employee Champion
146
A company is termed as an employee champion if its policies are directed towards the welfare
of the employees. The rights and needs of the employees are the central focus of all the activi-
ties conducted by the company and its human resource department. Ulrich and Brockbank
(2012) listed employee champion amongst the five critical competencies of a successful HR
professional. Employee champions have been noted to resist the quagmire of running a gender-
based organisation through the promotion of workers’ liberty and the smashing of the glass
ceiling.
11.4 HR as a Change Agent

The HR department is the internal change agent responsible for creating the right environment
for driving change initiatives of the organisation. This may include changing the behaviour of
workers on the one hand or changing the market standing of the organisation through the stand-
ardization of operations on the other. Change agents analyse and attempt to predict the future
of a business by following market trends, organisational behaviour, group dynamics, etc.
A change agent is a person from inside or outside the organisation who helps an organisation
transform itself by focusing on such matters as organisational effectiveness, improvement, and
development. A change agent usually focuses his efforts on the effect of changing technologies,
structures, and tasks on interpersonal and group relationships in an organisation. Ulrich and
Brockbank (2012) listed change agent amongst the five critical competencies of a successful
HR professional.
11.4.1 Roles and Competencies of a Change Agent

A change agent is a consultant, either from within the organisation or brought in as an out-
sourced service provider. They often play the role of a researcher, trainer, counselor, or teacher.
Sometimes they will even serve as a line manager. While some change agents specialise in one
role, most will shift their roles depending upon the needs of the organisation.
Competencies of a change agent include:
1. Broad knowledge of the organisation, people, and industry.
2. Sensitivity and maturity in carrying out the change process.
3. Authenticity and zero-bias disposition and judgment on issues.
Change can only occur from within the organisation. According to Harvey-Jones (1988), or-
ganisations can only change when the people in them change; and people will only change
when they accept in their hearts that change must occur. HR is at the centre of all the change
efforts of the business. He is responsible for creating the right environment for change initia-
tives.
11.5 Administrative Expertise
147
This has to do with the credibility of a person who is perceived to be knowledgeable in an area
or topic due to education, technical training, and experience. HR managers act more like con-
sultants to senior management. They are expected to assist people at all levels of the organisa-
tion. This career demands that HR professionals find the much-needed balance between ad-
ministrative and leadership duties.
11.6 Centre of Service Excellence

A Centre of Excellence (CoE) is a group, a shared facility or an entity whose operation is geared
at supporting and providing leadership, best practices, research, support and training for a focus
area. For instance, a section of an organisation may comprise a group whose job is dedicated
to providing power to every unit of the organisation at all times no matter the challenge using
batteries, solar energy, grid power, generators, etc. The bottom line here is the “Generation of
Power.”
11.7 Summary
Human resources management is a synchronized process, not a situation. Today, HRM has
metamorphosed into a more effective organisational function by assimilating and using best
practices, one of which is the present-day focus on collaboration rather than rivalry. Integration
is the ultimate aim of the Business Partnership.
Review Questions
1. Demonstrate your understanding of the HR Business Pertners’s role
2. What do you understand by the term employee champion?
148
3. What attributes makes an entity an employee champion?
4. a. What is organisational change?

b. Should change be done by staffan internal consultant or an external consultant? Jus-
tify your answer.
References
Armstrong, M. (2009). Handbook of HRM practice. London and Philadelphia.
British Psychological Society (2007). Psychological testing: A user’s Guide. Psychological
Testing Centre, Leicester.
CIPD (2007). Psychological Testing. CIPD Fact Sheet, London.
Fotios V. and Glasgow G. (2014). Human resources (HR) as a strategic business partner:
Value creation and risk reduction capacity. International Journal of Human Resource
Study. 4(1)
Ulrich, D. & Brockbank, W. (2012). Human resource competency study. The RBL Group.
149
CHAPTER TWELVE
EMPLOYEE ENGAGEMENT
1. explain the role of employee engagement in improving productivity, customer satisfac-
tion, and more importantly, profitability;
2. explain the role of employee engagement as a means of achieving employee retention;
and
3. explain various employee engagement strategies.
12.0 Overview of Employee Engagement

Employee engagement is a workplace approach resulting in the right conditions for all mem-
bers of an organisation to give their best each day, commit to their organisation’s goals and
values, as well as remain motivated to contribute to organisational success, with an enhanced
sense of their well-being. Employee engagement is a situational approach whereby employees
are afforded the best possible environment to carry out their work, thereby enabling them to
fully utilize their potentials in completing jobs. Encouragement through extrinsic and intrinsic
motivation is an important factor in employee engagement. It allows employees to release their
creativity and to contribute towards organisational development initiatives (Walton, 1985).
To Kahn (1990) ‘Employee engagement is “the harnessing of organization members’ selves to

their work roles; in engagement, people employ and express themselves physically, cogni-
tively, and emotionally during role performances. Engagement means to be psychologically as
well as physically present when occupying and performing an organizational role’. Most often,
employee engagement has been defined as” emotional and intellectual commitment to the or-
ganization” (Baumruk 2004, Richman 2006 and Shaw 2005) or “the amount of discretionary
effort exhibited by employees in their job” (Frank et al. 2004).
Employee engagement is premised on giving and giving more, with the belief that the gesture
will be reciprocated. It is a relationship based on trust, integrity, two-way commitment, and
150
communication between an organisation and its members. It is an approach that increases the
chances of business success, contributing to organisational and individual performance,
productivity, and well-being by getting employees committed and involved in building an or-
ganisation. Employee engagement can be measured in terms of productivity, low rate of ab-
senteeism, low accident rate, low rate of industrial action, etc. Its measurement varies from
mediocre to excellent. It can be nurtured and increased or neglected and destroyed.
An organisation would have successfully kept a worker engaged if the worker went to sleep
with ideas he had on his way home and wakes up in the morning with a gratuitous feeling of
having the privilege of going to work to implement those ideas for an esteemed employer.
Employee engagement is about being included fully as a member of the team, focused on clear
goals, trusted and empowered, receiving regular and constructive feedback, supported in de-
veloping new skills, thanked and recognised for achievement. On the contrary, if an organisa-
tion uses manipulation and threat to get employees engaged the minimum negative feedback,
the organisation will get will be resignation, though there could be more destructive reactions
from the employees.
12.1 Employee Engagement Policy

Engagement is enhanced by favourable policies that show trust and confidence in employees,
adequate recognition for their efforts, freedom to operate, provision of avenues for meaningful
interaction with co-workers and a supportive supervisor, helping them balance work and family
demands, and providing them with career development opportunities.
Conversely, human resource policies destroy engagement when they limit employees in their
work, mistreat them, ignore creative ideas, restrict job-related information, isolate them from
others, and show a lack of trust. Employee engagement policies also cover areas such as health
and safety, performance and conduct, recruitment, and training. Policies on employee welfare
clarify the commitment of the organisation’s leadership to employee well-being.
12.2 Employee Engagement Drivers/Factors

Employee engagement drivers are factors that act as catalysts to job satisfaction. They are those
things that make an employee want to build his/her life around the organisation’s survival.
They may even pass as career anchors in some cases. Commitment can result in a stable and
productive workforce (Morrow, 1993).
In Japan, for instance, generations have built their lives around the existence of a single organ-
isation and are so committed to the business that it becomes a family tradition and an honour
to carry on the torch of life of such organisation.
Evidence suggests there is a connection between employee engagement and business results.
Engaged employees are also more likely to display discretionary behaviour.
Employee engagement drivers could include:
▪ Mission, goal, and purpose of the organisation are clear.
151
▪ Employees’ perceptions of meaning about the workplace.
▪ Employees’ understanding of their role, where it fits in the more comprehensive organ-
ization and how it aligns with business objectives.
▪ The degree to which employers are seeking to make work meaningful by finding out
what matters to employees.
▪ Managers have listening ears.
▪ Proper tools and resources deployed for work.
▪ Clean, safe, and serene work environment.
▪ Culture, values, politics, management styles, and the economy.
▪ Emotional experiences and wellbeing which has to do with how people feel about the
organization.
▪ Relationships within the workplace.
▪ The opportunity of work-life-balance.
▪ Recognition, reward, and appreciation.
▪ Work is Fun, love of the job and organisation.
▪ Employee voice in job design.
▪ Opportunities for employee feedback.
▪ Employee opportunities to share control and influence important decisions.
▪ Employees’ sense of personal accomplishment is derivable from their work.
▪ Freedom to unleash passion and creative potential
▪ Commendable trust level
12.3 Measurement of Employee Engagement

Officially, an organisation may take a survey to determine employee engagement at intervals,
but the employees may not see anything positive coming out of this. There is a possibility that
they may pen false statements which may mislead or derail the research. Spending huge sums
on private research may even be worse off as the workers may not see it as a friendly gesture,
which it is.
Employee engagement consists of cognitive, emotional, and behavioural components, and

measures of employee engagement generally contain questions that focus on all three of these
components. Cognitive questions assess employees’ beliefs about the company, its leaders, and
the workplace culture. Emotional questions assess the employees’ feelings about the company
and their work, such as: whether they are satisfied with their jobs, how well they are recognised
and appreciated. Behavioural questions assess the number of effort employees are willing to
152
exert, their willingness to display extra-role behaviours, and their commitment to remain with
the company.
Research on employee engagement has demonstrated that having a highly-engaged workforce

is exceptionally desirable and contributes to organisational effectiveness. Engaged employees
have significantly better health and psychological well-being (Crabtree, 2005). Engaged em-
ployees create significantly better customer loyalty (Salanova, Agut & Peiro, 2005).
The number of network connections and time spent with people outside of immediate team or
regions as well as the building of broad networks beyond the core team are also signs of high
engagement. The percentage of participation in ad-hoc meetings and initiatives versus the re-
curring meetings and processes are excellent indicators. Participation in only highly structured
events can be an indicator of low engagement. Time spent collaborating directly with custom-
ers outside of the normal scope of work, and such other measures can indicate that people are
highly engaged enough to help their colleagues even though they might not get credit for it.
Sample questionnaire for measuring employee engagement
Please indicate the degree to which you agree or disagree with the following by ticking (✓) your choice.
S/N Strongly Agree Undecided Disagree Strongly

Agree Disagree
1. My values and that of my employer

are very similar.
2. I’m constantly inspired with my

company’s vision/mission/goals that
always help me to be on my toes
153
3. It rarely crosses my mind to leave my
company to work in some other
place.
4. When working, my company in-

spires and motivates me to perform
to the best of my abilities – every
day
5. When it comes to the company’s

success, I walk that extra mile and
exceed the expectations of my em-
ployers.
6. Working at my company gives me a

feeling of achievement of job-satis-
faction.
7. When needed, I would definitely

recommend my company to a friend,
associate or acquaintance seeking
employment.
8. The work processes adopted by my

company allows me to be productive.
9. To perform to the optimum I’m pro-

vided with adequate resources like
computer, phone, work station, sta-
tionary etc.
10. I have sufficient opportunities for

personal and professional growth.
11. The process and procedures adopted

by my company to evaluate and pro-
mote the employees is fair
12. The company helps me build up by

skill-sets by providing me with ade-
quate training that is valuable to me.
13. The company has in-place a process

that helps me identify my develop-
ment needs.
14 The company provides me with good

opportunities to develop my skills
that empowers’ me to carry-out
multi-tasking
15 In the work-place, I feel that there

are sufficient opportunities for me to
improve my skills to excel.
16 For my contributions/
154
accomplishments to the company, I
receive adequate recognition other
than the compensation
17 The compensation system instituted

is more effective than those of others
in the industry.
18 I am satisfied with the administration

of compensation policies in my or-
ganisation.
19 An environment of trust is fostered in

my group
20 Jobs are fairly distributed among

members of my group.
21 I get all the support that I need from

my manager
22 I have confidence in the decision

made by my manager
23 My manager respect my thoughts and

opinion
24 I see strong evidence of good leader-

ship from the top management mem-
bers
25 Important decisions are promptly

communicated to employees
26 Employees’ well-being is actively

looked into.
27 As a professional, I can question a

policy without fear of being penal-
ized.
28 My work related strees is managea-

ble
29 My physical work environment is ap-

propriate for the type of job I do.
30 I find my HR policies as flexible and

employee friendly
31 HR policies are implemented in word

and spirit.
32 HR policies are easily and appropri-

ately made available for reference
33 I feel there is appropriate balance be-

tween formal policy and the use of
judgment and common sense.
155
34 I am aware of career opportunities
available to me in my organisation.
35 I feel the way my company treat ex-

isting employees and new joiners is
quite fair.
Source: Onijingin, (2008) HR policies and procedures as tools for employee engagement in
financial institutions.
12.4 Improving Employee Engagement Level
Engaged employees not only work hard and are loyal to their companies; they are also willing
to go above and beyond their job requirements to exhibit organisational citizenship behaviours.
Identified in the boxes below, are practices that improve employee engagement in organisa-
tions.
▪ Communicate clear ▪ Create a strong

goals and expecta- ▪ Uphold organisa- sense of belonging
tions to your employ- tional Culture ▪ Provide constant
ees ▪ listen feedback on the posi-
▪ Share information ▪ Trust tives
and numbers ▪ Give immediate
▪ Encourage open ▪ Support and encour- feedback
communication age innovation ▪ Show the result of
▪ Fast track communi- ▪ Reinforce employee feedback.
cation engagement ▪ Support employees
▪ Promote organisa- ▪ Create a strong team in their work and
tional values environment growth
▪ Delegate ▪ The reward for the ▪ Collaborate and
▪ Encourage talents extra effort share on problem-
solving
12.5 Importance of Employee Engagement

A major significance of employee engagement is that it’s at the heart of the employment rela-
tionship. It is about what people do and how they behave in their roles and what makes them
act in ways that further the achievement of the objectives of both the organisation and them-
selves. When employees are engaged, they put in their best and even surpass standards. They
take up the integrity of the organisation as their own and will defend it like their oxygen mask.
12.6 Levels of Employee Engagement:
156
Employee engagement should be done in all spheres of organisational undertakings, even at
the point of decision making to get workers involved and committed.
Dessler et al. (2002) identified three levels of employee engagement as follows:
1. Interpersonal Citizenship Behaviour refers to the willingness to assist co-worker in

completing job assignments.
2. Organisational Citizenship Behaviour describes the willingness of the employee to
accept and comply with the organisation’s rules and regulations as well as do everything
to advance the interest of the company.
3. Task/Job Citizenship Behaviour describes the employee attitude towards task com-
pletion as well as his willingness to put in the extra effort.
Managers generally talk about three levels of employee engagement (Gallup, 2006):
▪ Engaged employees are those who work with vigour (a high energy and vitality level),
dedication (a sense of determination and enthusiasm), and absorption (being deeply
engrossed and focused on one’s work).
▪ Not engaged employees are those who are putting in their time and going about their
work with little energy or passion but not interfering with others.
▪ Actively disengaged employees are those who are unhappy about their work, who ac-
tively murmur and complain about their job and the company, and who undermine what
their engaged colleagues are trying to achieve.
12.7 Summary
Employers in the 21st Century have no choice but to keep their employees engaged if they want
to keep their products alive and reduce the cost of employing for the same job at regular inter-
vals. HR professionals are therefore expected to constantly measure the level of employee en-
gagement in their organsations with a view to ensuring a high level of engagememt and values
creation for the business and all stakeholders.
Review Questions
1. What are the implications or significance of employee engagement?
157
2. Employee engagement should tend towards equality between the employer and the em-
ployees, do you agree?
3. List ten engagement drivers and explain five of them.
4. Only money keeps employees engaged. Do you agree?
5. Explain the levels of employee engagement?
6. Describe your perspective on how to measure employee engagement.
7. Explain the relationship between employee engagement and productivity.
References
Amah, E.; Nwuche, C. & Chukwuigwe, N. (2010). Effective reward and incentive scheme
for effective organisations. Research Journal of Finance and Accounting. 4(13),73-79.
158
Kahn, W. (1990). Psychological Conditions of Personal Engagement and Disengagement at
Work, Academy of Management Journal 33 p.692-724.
Baumruk, R. (2004). The missing Link: The Role of Employee Engagement in Business Suc-
cess, Workspan, Vol.47, pp. 48-52.
Richman, A. (2006). Everyone Wants an Engaged Workforce: How Can You Create It? Work-
span, Vol. 49, pp. 36-39.
Shaw, K. (2005). An Engagement Strategy Process for Communication Management, Vol.9,

No.3, pp. 26-29.
Frank, F. D, Finnegan, R. P., and Taylor, C. R. (2004). The Race for Talent: Retaining and
Engaging Workers in the 21st Century, Human Resource PlanningHuman Resource
PlanningHuman Resource Planning, Vol. 27, No.3, pp. 12-25.
Crabtree, S. (2005). Engagement keeps the doctor away; Gallup Management Journal,
http://gmj.gallup.com.
Salanova, M., Agut, S. & Peiro, J. M (2005). Linking organizational resources and work en-
gagement to employee and customer loyalty: the mediation of service climate; Journal of
Applied Psychology, Vol. 90, pp.1217-1227.
Gallup (2006). Engaged Employees Inspire Company Innovation; Gallup Management Jour-
nal, http://gmj.gallop.com.
Job Engagement: Antecedents and Effects on Job Performance. Academy of Management.

DOI: 10.5465/AMJ.2010.51468988 ACAD MANAGE J 53(3), 617-635
Newman D. A., & Harrison D. A. (2008). Been there, bottled that: Are state and behavioral
work engagement new and useful construct “wines”? Industrial and Organisational Psy-
chology, 1: 31–35.
Umoh G.; Amah E. & Wokocha H. (2014) Employee and continuance commitment in the
Nigerian manufacturing industry. Journal of Business and Management. 16(2), 69-74.
W. H. Macey, & Schneider, B. (2008). The meaning of employee engagement. Industrial

and Organisational Psychology: Perspectives on Science and Practice, 1, 3–30.
Armstrong, M. (2009). A handbook on human resources management practice, 11th ed.

(Int’l student edition) Kogan Page Ltd.
159
CHAPTER THIRTEEN
WORK-LIFE BALANCE
1. understand the concept of work-life-balance;
2. identify the benefits of work-life-balance; and
160
3. apply work-life-balance initiatives in their organisations.
13.0 Overview of work-life-balance
The concept of quality of working life emerged in the 1970s (Wilson, 1973) but has been more
prominent recently,. Work-life-balance is a state of equipoise between and among the four
quadrants of every individual life. Four life’s quadrants may be broadly categorised under
Work, Family, Friends, and Self. Greenhaus (2002) defined work-life balance, as satisfaction
and proper functioning at work and at home with a minimum of role conflict. Work-life balance
is only achievable through planning. Most successful people have achieved happiness in the
short and long run of their lives by creating a barometer to soothe the management of their
lives. Tycoons of the industrial world who do not plan their work-life balance may end up
miserable after retirement and have a front-row seat to watch their family life collapse as a
result of years of neglect.
One cannot get the full value from life without equal measures of achievement and enjoyment.
It is important to note that what plays out as work-life balance for one person may not apply to
another. At work, you can create your own best work-life balance by making sure you not only
achieve, but also reflect the joy of the job, and the joy of life, every day. Armstrong (2009)
identifies three reasons why organisations should be concerned about the well-being of their
employees. First, and most importantly, they have the duty of care, and this means adapting a
socially responsible approach to looking after their employees.
Second, employers are responsible for creating a pleasant work environment not only because
they must do so, but also as part of their total reward system. Third, it is in the interest of the
employers to do so because this will increase the likelihood of their employees being commit-
ted to the organisation and help to establish it as the best place to work.
13.1 Work-Life Balance Policy

A work-life policy is the initiative of the management established to help employees meet their
responsibilities outside work. This policy provides a framework within which departments can
consider how best to help the staff achieve a sufficient balance between work and life outside
the workplace.These policies are aimed at simplifying work and making it flexible for the
workers without complicating the work process or decreasing productivity. The change in the
system of work must be feasible and have no adverse impact on the work of colleagues, the
department, students, research sponsors, service users, or any other relevant third party.
In the same vein, the work schedule must have no adverse impact on the workload or health,
safety, and security of the individual concerned or their colleagues. Any possible hazard due
to new arrangements must be addressed. Work arrangements are constructed and reconstructed
to help workers get the needed work-life balance about that of their colleagues and reference
to the organisational policy.
Examples of work arrangements that aid work-life-balance are as follows::
161
1. Flex-Time
Flexitime schemes usually involve individuals working a set of "core hours" in which they are
obliged to attend work, with periods either side of the core, within which they can choose their
arrival and departure times.
2. Shift Working
Shift working allows workers to switch from working either in the morning, afternoon or over-
night, this is exemplified in the theory of ‘The Owl and the Lark’ in which case some people
are most productive in the day, while others are at their best at night.
3. Rota Working/Staggered Hours:

This option enables the agreement of a fixed pattern of starting and finishing times for each
individual and allows members of a team to cover the work required in the office or in a factory
for a more extended working day than might otherwise be the case if everyone followed the
same working pattern.
4. Job Sharing
Job share is a particular form of part-time working, where all aspects of a job are shared be-
tween people. In most cases, the job is shared between groups.
5. Job Splitting
Job splitting is also a form of job share in which the range of tasks within a role is split between
two or more staff. Sometimes the split jobs are swopped between the groups so that all staff
involved will have a feel of what the entire job role is all about.
13.2 Work-Life Balance Initiatives

Work-life balance initiatives aimed at protecting and promoting workers’ health and well-be-
ing. This goes a long way in preserving and improving the health and well-being of workers so
that they may achieve the needed cycle of their career and family life.
A survey by Chantai, E (2014) at Lagos Business School gave insights into the work-life bal-
ance of Nigerians. Out of the population surveyed, the statistics below are quite revealing:
▪ 14% never or seldom work more than official hours.

▪ 69% work more than 48hours per week, and more than 65% said it is due to the volume
of work.
▪ 25% of work longer hours because they enjoy their work.
▪ 47% commute between 3 to 6hours on a typical day and 35% claims that commuting
adds significantly to the stress of the day.
162
▪ Unfortunately, 68% of those working excessive hours (more than 48hours per week)
had suffered from stress-related illnesses in the past 12months some of which are fa-
tigue, migraine, series of persistent minor ailments, irritability, sleeplessness, anxiety
attacks, lack of concentration, loss of appetite and depression in that order.
▪ 80% wish they have more time for their family and 43% of them already feels entirely
emotionally drained by the time they get back home from work
▪ More shocking is the fact that over 51% of those who think their life is out of control
to seek help from outside of their organisations, mostly from Doctors, and this help is
generally considered effective.
The study concluded that both personal effort on the part of each employee and organisational
support in the form of family-supportive or family-responsible policies should be implemented.
A proper diagnosis of why employees are working excessively long hours should be periodi-
cally conducted, and corrective measures should be introduced. Getting the employees in-
volved will be critical to coming up with lasting solutions.
13.3 Determination of Work-Life Balance Initiatives

The determination of work-life balance for individuals varies. Workers are availed different
types of work systems to choose from, or in some cases, the work schedules are rotated to allow
workers have some element of satisfaction, even though the full preference for a particular
work system cannot be fully guaranteed.
In most cases, women enjoy more from the bouquet of job schedule because of laws guiding
their employment, maternal health, and other gender-related issues. Employees also have the
option of monetizing opportunities presented to them so that they may have a work-life balance.
For example, an employee may choose to monetize his annual paid vacation.
13.4 Implementation of Work-Life Balance Initiatives:

Organisations need to evolve creative ways to implement work-life balance initiatives. Accord-
ing to Chantai (2014), while extended full-time maternity leave may be inadequate for the or-
ganisation, a creative way is to implement extended part-time maternity of four weeks of full-
time and sixteen weeks of half-time. While an in-house crèche may be too costly for one or-
ganisations, two or three organisations in the same location can collaborate to run a quality
crèche for their joint employees.
There are quite a handful of family-responsible practices that can be implemented by organi-
sations apart from those already mentioned under the work-life balance policy. Some of these
include:
163
▪ Part-time jobs or re- ▪ Part-time careers ▪ Childcare leave
duced hours ▪ Extended maternity ▪ Childcare assistance
▪ Flexibility in leave leave without pay (financial or logis-
and short vacations ▪ Paternity leave (a tics)
▪ Tele-office at home few days) ▪ Stress management
▪ Time management ▪ Training on combin- training
training ing work and family ▪ Deliberate creation
▪ Individual re-think- ▪ Bolster available of time for relaxation
ing of Errands support system ▪ Leave work at work
▪ Learn to say ‘No’ re- ▪ Sport facilities at in policy
spectfully the work environ-
▪ Engage in team ment.
building activities ▪ Departmental or
▪ Childcare services company outing
▪ Unpaid vacation
when required.
13.5 Benefits of Work-Life Balance Initiatives
13.5.1 Benefits to the Worker

Creating and managing a work-life balance is one of the best things a worker can do for him-
self/herself. It enables the worker to balance all aspects of his life without defaulting in some
important duties that may not be work-related, but important in the long run.The individual
lives a long and prosperous life with work-life balance, without which there are dire conse-
quences for these workers. Work-life balance policies have been found to help tackle low mo-
rale and a high degree of stress that can lead to the retention problem.
13.5.2 Benefits of Work-Life Balance to the Organisation

When employees are afforded the opportunity of a work-life balance, they are more creative
because they can appropriate the need of the organisation to their personal lives, hence serving
the organisation becomes a way of life. With a good policy on work-life balance, a company
will spend less on recruitment because there would be low figures for exiting workers.
The company will enjoy goodwill due to its policy on promoting work-life balance.
Improved productivity and quality of work, reduction in staff turnover, reduction in casual
absence, enhanced utilisation of recruits was among the benefits of work-life balance as es-
poused by Armstrong (2009).
13.6 Summary
Work-life balance is important to every individual life. To the worker, it is a boost to his health
and overall wellbeing. The employer who professes and practices work-life balance will have
fewer problems with employees and lose less on wastages.
164
Review Questions
1. Life should not be a high wire balancing act of work-life and personal life, which may
include family. Discuss.
2. What is the need for a work-life balance policy in an organisation?
3. Could work-life-balance influence longevity in the organisation?
4. What effects does work-life-balance have on gender-related issues?
5. The workers of today are more aware of the need to take time off work to refresh them-
selves. How true is this?
References
Delecta, P. (2011). Work-life balance. International journal of current research, 3(4),
186-189.
Osborne, D. (2017). The woman question, Minority Law Journal Student Edition 12
Armstrong, M. (2009). A handbook on human resources management practice, 10th ed.,

(Int’l student edition), Kogan Page Ltd.
Kodz, J. Harper, H & Dench, S (2002) Work-life balance: beyond the rhetoric, report 384,
Institute of Employment Studies UK.
Chantai, E. (2014). Work-Life Balance: Giving it the Nigeria Flavour; CIPM People first Mag-
azine, Vol.3 No.1, pp.9-10.
165
CHAPTER FOURTEEN
ORGANISATIONAL HEALTH, SAFETY & ENVIRONMENT ISSUES
LEARNING OBJECTIVES

1. explain relevant health, safety and environmental regulations in the work environment;
2. identify potential hazards within and around the workplace;
3. understand how to mitigate the incidence of an industrial accident; and
4. understand employers’ role in providing a safe work environment.
14.0 Overview of Health, Safety, and Environment in Organisations
The world in which we live is increasingly becoming uncertain and insecure. Companies eve-
rywhere today are exposed to threats such as accidents, thefts, ill health, and adverse weather
conditions. Industrial accidents are extremely costly, whether measured in terms of medical
expenses and disability compensation, lost production and wages, or damage to plant and
equipment. The human cost in death and suffering is beyond calculation. The frequency of
accidents statistics is alarming and has occasionally aroused public sentiment to the point that
166
safety laws have been passed. This chapter explains the significant health and safety laws in
our environment of work and describes some common programmes and interventions.
Unsafe working conditions affect workers’ health and productivity. Safety and health are vital
concerns in every organisation, and it is the responsibility of each employer to provide a work
environment that is free from recognised hazards that are causing or are likely to cause death
or serious physical harm to employees. Health and safety programmes are often viewed as HR
responsibilities even though many companies assign them to other departments depending on
the size of the company and the seriousness of the threat.
However, everybody has a role to play as it goes beyond employers of labour, human resources
department, or any other department may be assigned the responsibility for safety. The culture
of accident prevention, for example, entails: sensitising of workers on occupational safety and
health; printing and distributing safety materials to employees; identifying and proper reporting
of occupational hazards and cases of ill health among workers at the workplace and taking
corrective action; conducting fire and spillage drills, among others.
The Factories Act 1987 lays down the laws that govern the workplace concerning matters of
health, safety, and the environment. Health watch on the list of the organisation is concerned
with the wellbeing of the workers of the organisation. Such questions like what is toxic in the
materials used for production? Are there harmful emissions from machines or chemicals used
in the process of production?
Safety issues include the structure and the work arrangements of the organisation. The protocol
of operations ensures safety in the workplace. Where protocol is not observed, injuries may
occur, and in some cases, it could be fatal. The environment of the workplace, depending on
the firm, needs to be structured for health and safety. It is important that the workplace is se-
rene, well laid-out, and prepared for emergencies like fire outbreak, chemical explosion, among
others.
Causes of industrial accident:
1. Organisational errors
2. Human errors and factors
3. Machine failure
4. Deviation from operating procedure
5. Natural forces
6. Inadequate training
7. Wilful negligence of employee
8. Poor communication
9. Incompetence
How to prevent industrial accident

1. Adequate relevant training
2. Provision of personal protective equipments (PPE)
167
3. Strategic display of instructional and safety materials
4. Ensure proper maintenance of machineries
5. Compliance with all Health and safety regulatory standards
6. Compliance with the operating procedure
7. Recruitment of competent people
HR responsibility in the event of Industrial Accident
1. Promptly ensure medical attention

2. Notify the NSITF for claims and compensation
14.1 Health, Safety and Environmental Regulations – Local and International
The Factories Act 1987 and the Employee’s Compensation Act 2014 are the two most author-
itative laws of the Federal Republic of Nigeria that guide the running of the workplace and the
management of casualties if and when they occur. Factories Act 1987, Section 13, covers the
duty of inspector as to sanitary defects remediable by the local authority.
The United Nations (UN) through its organs World Health Organisation (WHO) and Interna-
tional Labour Organisation (ILO) provide for minimum standards of operation of health and
safety when engaging human lives and policies that regulate labour management relations in
the workplace. This they do through constant review of industrial laws and laying down rules
through conventions that are enforced through concession and ratifications.
Individual organisations are also expected to have safety programmes and regulations that are
well implemented and enforced. Such programmes need the support of top management to be
effective. When managers are not interested in safety and health, no one else is likely to show
interest either, and the safety regulations become unenforceable.
14.2 Health, Safety and Environment Procedure

Health inspectors from both federal and state ministries and departments visit organisations at
unexpected intervals to check the state of tidiness in running plant affairs. Also, the Govern-
ment provides advocacy on issues concerning health. Safety issues are covered under the Fac-
tories Act 1987. Machines are to be fenced under Act 17 (1), just as containers, where corrosive
chemicals are kept, are to be properly kept away from the employees to guard against accidents
(Section 21). The environment of the workplace must be serene, spacious, have many entry
and exit points, etc.
To ensure that health and safety procedures are well implemented, managers should demon-
strate a sincere interest in them by following these procedures:
▪ Holding periodic meetings with employees to discuss job safety and health matters.
▪ I am preparing a policy statement that declares management’s concern about safety and
health.
▪ Including job safety and health topics in conversations with employees.
168
▪ Reviewing all inspection and accident reports and check to make sure that hazards are
eliminated.
▪ Participating actively in labour-management safety committees.
The responsibility for safety and health activities should be clearly and expressly assigned to
one individual. The job of this individual should be to ensure that an effective safety pro-
gramme is developed and implemented. Employees should be responsible for following pre-
scribed safety and health procedures and for recognising and reporting hazards in their areas.
Supervisors should be responsible for making sure that safety practices are understood and
followed. Avoiding an accident requires the cooperation of everyone. All employees should
know that carelessness and willful disregard for safety practices may result in discipline and
even termination of employment.
14.3 Medical Schemes and Employee Wellness Programmes

Many organisations are genuinely concerned about the health and well-being of their employ-
ees. Poor health incurs a considerable cost to employers. These costs are caused by excessive
absenteeism and tardiness, premature death and disability especially where employees are un-
able to afford proper medical care, reduced productivity, and higher health insurance premi-
ums.
The National Health Insurance Schemes (NHIS) is established under Act 35 of 1999 by the
federal government of Nigeria with the purpose of providing easy access to healthcare for all
Nigerians, at an affordable cost through various prepayment systems. The scheme is funded by
a pool of contribution by members, out of which those that suffer health challenges are treated.
Organisations also make health management plans available to their workers free of charge.
This may include providing on-site clinics for affected workers.
Rather than waiting for employees to get sick and then offer assistance, many companies are
taking a defensive posture by trying to help employees avoid illness and accidents. These pro-
grammes are referred to as employee wellness programmes because they focus on trying to
improve and maintain employees’ health. Some employee wellness programmes include phys-
ical exams to assess employee health and health education on posture awareness or to teach
proper dietary habits. Other wellness programmes are designed to help employees stop smok-
ing or eliminate alcohol and drug abuse.
The most important element in employee wellness programmes may be a weight management
programme. Some companies register their employees in gymnasiums to ensure that they are
fit to continue to conduct the business of the organisation. Successful employee wellness pro-
grammes can be beneficial to employers because they often result in lower absenteeism, re-
duced health insurance costs, and increased productivity at a relatively low cost when com-
pared to other employee benefits. Organisations that experience a good return on their invest-
ment in wellness are more likely to expand their programmes and offer employee incentives
(HR Magazine, 2012).
169
14.4 Personal Protective Equipment (PPE)
Personal protective equipment is protective gears used by workers to protect themselves from
injury or at least lessen the effect of injury that they may sustain in the line of duty. Most used
PPE are helmet, goggles, boots, gloves, and overall. It is the duty of an employer to provide
safety gears and the responsibility of the employees to use them. If the employer makes the
safety gears available and the employees don’t use them or vice versa, in the eventuality of an
accident within the workplace the affected party may sue by the relevant laws.
14.5 Emergency Management Plans

These are carefully thought-out plans to ensure that accidents are appropriately managed when
they occur. These plans may be written in clear statements or represented as information signs
at designated points.
Part of an employer’s obligation in providing a safe and healthy work environment is ensuring
that the company has an emergency management plan for handling such emergencies as fires,
explosions, earthquakes, chemical spills, and acts of terrorism. An effective plan includes at
least the following provisions:
▪ Clarifying the chain of command with backup positions
▪ Accounting for all employees when an emergency strikes
▪ A command centre to coordinate communications
▪ Employee training on such things as emergency evacuation procedures, alarm systems,
fire drills, reporting procedures, shutdown protocols, and procedures for identifying and
accounting for employees.
▪ First aid kits, medical supplies, and specially trained employees to render medical as-
sistance during emergencies.
▪ A team of healthy and capable employees referred to as ‘emergency team.’
Employees can be trained to respond to general emergencies and can also be given specific
training to deal with situations that are more likely in their area.
14.6 Emergency Response Plan

The actions taken in the initial minutes of an emergency are critical. A prompt warning to
employees to evacuate, shelter, or lockdown can save lives. A call for help to public emergency
services that provide full and accurate information will help the dispatcher send the right re-
sponders and equipment.
An employee trained to administer first aid or perform cardiopulmonary resuscitation, com-
monly known as CPR, can be lifesaving. Action by employees with knowledge of building and
process systems can help control or minimize damage to the facility and the environment.
When an emergency occurs, the priority is always to save lives, saving the plant is secondary.
170
Both private and public organisations are expected to develop plans for emergencies. It is dif-
ficult to anticipate all possible emergency situations, and each crisis could call for a different
response but generally each organisation is expected to develop a plan, develop an executive
policy regarding emergency responses, appoint a programme coordinator to oversee the devel-
opment and implementation of the plan, create an advisory committee, conduct a risk assess-
ment, continually evaluate and modify the plan in response to emerging risk factors and com-
municate the plan to employees and train them on how to respond.
14.7 Emergency Preparedness Training

Emergency preparedness starts with taking and maintaining a register of all members of staff.
It should be a daily affair to check the ingress and egress of staff. In the same vein, visitors to
the organisation must be registered and guided around the workplace in order to monitor their
movement within the organisation and to make sure they exit the organisation safely.
Staff should be trained from time to time on how to manage emergency and how to use gadgets
at emergency times. A minimum of classroom and on-the-job training should be conducted to
review the procedures and other emergency practices. Drills on safety, CPR, first-aid, and evac-
uation procedures should be clearly stated and emphasized to staff and visitors at every bend.
Taking stock of all assets, both fixed and current, is the next thing to do. In the event of a fire
outbreak or natural disaster, recorded assets are looked up in a checklist to determine what may
have been lost. Signs and to-do lists should be put at strategic points in the organisation along-
side emergency management apparatuses. These will help mitigate the loss of property and
save lives.
14.8 The Role of the Federal and State Regulatory Agencies, Ministries and Departments
Federal and state institutions are the first responders to emergency . When emergency situations
cannot be handled quickly, it is advisable to call for help. Emergency numbers are usually
short and can be committed to memory, still fear and desperation may make one forget the
smallest of details, in that wise, it is advisable to boldly imprint emergency numbers on the
walls of designated areas.
Relief materials are immediately deployed by the state to cushion the effect of calamity that
may have befallen people. Relief materials could be in the form of ambulances, bed, mattresses,
food, medicine, etc. Financial help may also be extended to the needy to help them temporarily.
Statistics of disasters are kept by the state and federal institutions to know the frequency, extent
of damage, and how to manage a particular natural or human-made disaster. The forensic report
shows the cause of a specific event. The unraveling of the cause of an event can enable author-
ities to plan to prevent future occurrence. The prosecution may be an option if a culprit was
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apprehended in the course of carrying out a forensic report on the cause of damage or destruc-
tion of the company’s property or loss of life.
14.9 On-Site Clinic

On-site clinics are strategic health management plans used by an organisation to manage the
health of its workers within the confines of the organisation. On-site clinics are strategically
located in the workplace for two reasons:
1. As a way to quickly give medication to sick or injured workers as first aid before they
are transported to hospitals for further medical examinations.
2. Having an on-site clinic helps an organisation to reduce expenses on medicals and re-
duce recorded fatalities on the organisation’s premises.
Many companies provide on-site medical care by hiring health care providers and furnishing
them with a clinic on the company’s premises. This makes health care much more convenient
for employees and much less expensive for employers. Although in-house medical services do
not eliminate the need for specialist services, they provide timely care for employees and help
companies manage their benefits expenses. On-site clinics are usually provided in one of three
ways (Byrnes, 2005):
▪ Enlist a third-party vendor who delivers and manages all the services and staff.
▪ Contract directly with outside health-care professionals to staff and manage the facility.
▪ Hire health-care professionals as employees to staff the on-site facility.
Some services provided by on-site clinics include:

• On-the-job injury treatment and triage
• DOT and non-DOT physicals
• Drug screenings
• Fit for duty evaluations
14.10 First-Aid Boxes:

First aid boxes are intended to give sick workers first attention in the event of the occurrence
of illness or minor accident on the organisation’s premises before being transported to special-
ists in a hospital for professional health care (Factories Act 1987, Section 43). A first aid box
contains medicines and medical apparatuses that could be used to manage minor sicknesses
and injury. Contents of a first aid box may include scissors, bandages, iodine, disinfectants,
etc.
14.11 Summary
Occupational health and safety are very important in every unit, department, and the organisa-
tion as a whole. Environmental health and safety is the duty of everybody in the organisation
and should be treated as such in all ramifications.
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Review questions
1. What do you understand by emergency preparedness training?
2. Discuss the roles of federal and state institutions on health and safety issues in an or-
ganisation.
3. Why does an organisation need On-site clinics and first-aid boxes?
4. Describe how managers can stimulate interest in active safety and health programmes.
5. Describe the types of programmes typically offered in an employee wellness pro-

gramme.
6. What are the provisions that should be included in an emergency management plan?
References
Factories Act 1987
Employee ’s Compensation ACT 2010.
Byrnes, N. (2005). Star Search; Business Week, October 10, 2005; pp. 68-78.
HR Magazine (November 2012). A Closer Look: Wellness ROI, the International Foundation
of Employee Benefit Plans; p.15.
173
ILO Convention No. 174 of 1993, Prevention of major accident
CHAPTER FIFTEEN
HUMAN RESOURCES METRICS AND ANALYTICS

1. understand the concepts of HR metrics and analytics;
2. explain the various uses of HR metrics;
3. explain the different HR metrics; and
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15.0 Overview of HR Metrics and Analytics
HR metrics and analytics is strategic positioning of potential human capital for the sustained
and competitive organisational performance through the formulation of human resource pro-
grams and decisions for the attainment of strategic outcomes.
HR metrics allow managers to evaluate the important dimensions of success concerning people
– how they are recruited, trained, retained, and terminated. Standards have been developed for
storing information regarding such HR functions as assessments, staffing, recruiting, payroll,
benefits, training, and workforce management. These standards provide an important tool for
employers, Government agencies, and HR vendors to access and integrate HR data.
The ability to obtain metrics data directly from HR systems in real-time provides many bene-
fits. For example, employers and background checking vendors can share information more
quickly and less expensively; employers can provide government agencies with more timely
and convenient reports, and benchmarking organisations can collect more timely information
and provide more meaningful and complete reports.
15.1 Objectives of HR Metrics and Analytics

The goal of human resource analytics is to provide an organisation with insights for effectively
managing employees so that business goals can be reached quickly and efficiently. The chal-
lenge of human resource analytics is to identify what data should be captured and how to use
the data to model and predict capabilities so that the organisation gets an optimal return on
investment (ROI) on its human capital.
Good metrics help managers make continuous improvements on how people are treated and
often dispel myths and incorrect assumptions. For example, a company that assumed its high
turnover was due to low monthly salaries may be surprised to discover after a thorough metrics
and analytics report that it was mainly due to the fact that employees do not find their work as
challenging as they would have expected.
15.2 HR Metrics
Human Resources metrics show data on hiring, on-boarding, performance, firing, off-boarding,
benefits, development, and compensation. Managing the HR department itself is done by mon-
itoring the metrics and analysis of its activities and reporting them.
Measures of HR effectiveness have included (a) subjective attitudinal measures, (b) statistical
measures, (c) human resource accounting, and (d) economic cost accounting measures. Some
of these measures tend to focus on evaluating specific HR activities, some assess the perfor-
mance of the HR department as a whole, and others measure the impact of HR programmes on
175
the economic success of the organisation. For example, a human resource audit evaluates the
effectiveness of the human resource department (Hooper, 1984).
External experts who are qualified to conduct a meaningful HR audit typically come from ac-
counting firms with HR practices, HR consulting firms, and other professional services firms
with HR expertise (Krell, 2011). Compliance audits are often performed after an alleged vio-
lation to ensure that the current policies are appropriate and if they are being followed. A value-
creation audit focuses broadly on how well the HR policies and programmes correlate with the
business priorities and whether the HR activities can be performed more efficiently.
Several statistical measures are used to assess HR activities, such as ratios, percentages, aver-
ages, and correlations. Some of these measures can be – (a) employee measures, (b) productiv-
ity measures, and (c) HR process measures.
Examples of employee measures include:
▪ Job satisfaction and measures of company morale

▪ Organisational commitment and involvement
▪ Turnover and retention rates
▪ Absenteeism rates and days of sick leave taken
▪ Grievance rates
▪ Exempt terminations as a percentage of exempt employees
▪ Non-exempt terminations as a percentage of non-exempt employees
▪ Employee engagement level
▪ Trust index
▪ Employee statisafaction level
▪ Internal and external pay equity survey
Examples of productivity measures include:
▪ Output/Input ratios
▪ Revenue per employee
▪ Cost per employee
▪ Units produced per employee
▪ Profit per employee
▪ Cost of a new hire
▪ Time to fill vacant vacancies
▪ Compensation cost per employee
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Examples of HR process measures include:
▪ HR department expense as a percentage of operating expenses

▪ The ratio of total employees to HR staff employees
▪ Compensation as a percentage of revenue
▪ Compensation as a ratio of company operating expenses
▪ Cost per hire
▪ Benefits as a percentage of payroll or a portion of operating expenses
▪ HR department expenses per employee
▪ Ratio of offers made to acceptances – yield ratios
▪ Retiree benefit cost per retiree
▪ Training expense per employee
Some other HR Metrics:

HR cost per employee,
HR cost vs. revenue,
HR responsiveness,
Average response time,
Average resolution time
Average complain resolution time, etc.
15.3 HR Analytics
Human resources analytics, also called talent analytics, is the application of sophisticated data
mining and business analytics (BA) techniques to human resources (HR) data.
HR analytics is all about making sense of the data and statistics already gathered as a tool for
assessing the performance of HR activities, especially when there is a basis for comparing
them. Two ways to make sense of these statistics are (a) to compare them with comparable
companies and (b) to compare them with the company’s historical performance by examining
changes over time.
HR managers should use both of these approaches to interpreting metrics since the information
from just one source can be biased by many factors, which may include industry, size of the
company, economic conditions, and organisational structure. Another thing managers must en-
sure before making decisions through their analytics is to be certain that data collected are
meaningful and accurate.
15.4 Data Gathering for HR Analytics

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Data gathering involves collecting information from all units, sections, and department for
computing statistical analysis for decision making.Actionable predictive analytics are func-
tional outcomes of HR analytics. However, when action is not taken on the analysis, the report
of the analytics is as useless as not undertaking the rigours and cost of making it happen.
Types of analytics:
Historical metrics - report past events

Predictive analytics – analysis of the future
Actionable predictive analytics – analyses the past against the present to predict the future.
15.5 Data Presentation for Decision Making

Data presentation after computations must have been finished, is done in a simple, easy to
understand way. This is to put every stakeholder on the same level of understanding.
Presentations can be done in these simple ways:

1. Bar chart
2. Pie chart
3. Histogram
4. Scatter diagram etc.
The process of collecting HR metrics and presenting them to managers in a useful format is
known as an HR scorecard, or sometimes as an HR dashboard. A meaningful scorecard serves
as a critical management tool to strengthen HR’s strategic influence in an organisation.
A carefully designed scorecard includes four perspectives:

(1) a strategic perspective that measures progress in achieving major strategic initiatives,
(2) an operational perspective that measures the effectiveness of HR processes,
(3) a financial perspective that measures the financial contribution of HR activities, and
(4) a customer perspective that measures how well HR activities serve both internal and exter-
nal customers (Becker, Huselid, and Ulrich, 2001).
HR scorecards increase HR’s ability to control costs and create value.A useful scorecard rein-
forces the difference between HR “doable” and HR “deliverables” and draws attention to the
results that human resource activities are intended to produce (Beatty, Huselid, and Schneier,
2003).
15.6 HR Metrics Templates
178
So many metrics have been proposed for HR scorecards, and companies need to decide which
metrics are their best measures of efficiency and effectiveness. Efforts to standardise the for-
mulas and define the terms for these metrics have contributed to their usefulness. Some of them
are:
1. Revenue Factor, (or Revenue per FTE): Revenue /Total Number of FTE
This metric is often used as the primary measure of the effectiveness of a company
since it represents how much revenue is generated by the average full-time equivalent
(FTE) employee (Kroll, 2006). This metric views employees as a capital investment
rather than as an expense. Part-time employees are included in the FTE count in pro-
portion to the hours they work.
2. Revenue per Labour Costs: revenue/total labour costs

This metric is a better measure to track than revenue per FTE since it motivates man-
agers to reduce costs rather than FTEs (Flores, 2006). When companies focus on reve-
nue per FTE, managers are motivated to use expensive overtime to meet production
deadlines rather than less expensive contingency hiring that increases the number of
FTEs.
3. Human Capital ROI: [operating expense – (compensation cost + benefit cost)]/ (com-
pensation cost + benefit cost)
This metric measures the return on investment ratio for employees and is frequently
mentioned as the prime measure for analysing HR practices, such as recruitment, train-
ing, and incentives. Changes in this metric are carefully examined concerning changes
in HR practices to test for causal relationships.
4. Human Capital Value Added: [revenue – (operating expense – (compensation cost +

benefit-cost)] / total number of FTE
This metric represents how much value is added to the company from the average em-
ployee and is interpreted as the value of the workforce’s knowledge, skills, abilities,
and performance.
5. HR Expense Factor: HR expenses / total employees

This metric is also referred to as HR cost per employee, and it represents the average
cost of providing human resource services to the employees in a company. This metric
can be benchmarked using surveys that show the average for all responding companies,
plus the average HR expense for different industries and companies of various sizes.
Two other famous HR cost metrics are HR cost as a percentage of revenue and HR cost
as a percentage of total operating costs.
6. Turnover Rate: [number of separations during the month / average number of employ-
ees during the month] x 100.
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This metric is the standard measure of turnover, the rate that employees leave a com-
pany, and is usually divided into voluntary and involuntary reasons before examining
potential problems in HR policies.
7. Absence Rate: [(number of days absent in the month) / (average number of employees
during the month) x (number of workdays)] x 100.
This metric is the standard measure of absenteeism and can be benchmarked with other
absenteeism surveys. Benchmark data can indicate whether a company has a serious
absenteeism problem. This metric can track the effects of changes in attendance poli-
cies, attendance incentive programmes, and other interventions.
8. Cost per Hire: (external costs + internal costs) / number of hires.

The CPH metric measures the costs associated with the sourcing, recruiting, and staff-
ing activities borne by an employer to fill an open position. The external costs include
all recruiting costs, such as third-party agency fees, advertising costs, job fair costs, and
travel costs. The internal costs include the salary and benefits of the recruiting team
plus fixed costs such as the physical infrastructure. The number of hires consists of both
temporary and full-time employees.
This metric measures only the costs of hiring a new replacement and not the entire cost
of turnover. It is used to examine changes in recruitment and retention policies. Other
measures that are used to evaluate the effectiveness of “on-boarding” include first-year
retention rates, time to complete training, time to receive equipment and tools needed
to do the job, and time to achieve full productivity.
9. Time to Fill: Total days elapsed to fill requisitions / number hired.

This metric counts the number of days from which job requisitions are approved to the
new hire starting date. It measures the average time required to fill job openings and
reflects the efficiency of hiring practices. Other key recruiting effectiveness metrics
include, time to start, response time, offer acceptance rate, and quality of hire.
10. Turnover Costs per Employee: (separation costs + replacement costs + training costs
+ lost performance) / number of replacements.
This metric measures more than just hiring costs; it includes all of the costs associated
with turnover and represents the average cost of replacing an employee who quits or is
fired. Separate metrics can be calculated for different divisions, different jobs, and dif-
ferent job levels. These costs provide a significant motivation for examining and im-
proving HR practices that reduce turnover.
11. Employee Benefits as a Percent of Payroll: Total employer benefits payments / total
gross payroll.
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This metric, sometimes called total benefit cost, measures the value of benefits as a
percentage of payroll and is one of the most-frequently used metrics for comparing the
cost of benefits within one’s industry and over time.
12. Training Investment Factor: Total training costs / headcount.

This metric represents the training cost per employee. As these metric changes, there
should be corresponding changes in other metrics tied to training effectiveness, such as
reductions in accidents following safety training.
13. Health Care Costs per Employee: Total cost of health care / total employees
This metric measures the per capita cost of employee health care benefits. This metric
is an important number during labour union negotiations and in communication with
employees. Employees need to know how this metric has changed over time and what
they can do individually to reduce it.
14. HR-to-Employee Ratio: (total number of HR FTEs / total number of FTEs in the or-
ganisation) x 100.
This metric provides a useful way to compare HR staffing levels between organisations.
It represents the number of HR staff per 100 employees and has remained relatively
stable over the past fifty years. Surveys show that the ratio of HR staff relative to total
employees is about 1:100 for most companies. Small companies with fewer than 100
employees have ratios of about 2.5: 100, while large companies with more than
2,500employees have ratios of about 0.5: 100.
15.7 Summary
HR metrics and analytics enable the human resource department to keep an eye on its activities
by comparing the cost to performance and productivity.
Review Questions
1. What are the objectives of HR metrics and analytics?
2. What relevance is the knowledge of HR metrics to an HR manager?
3. Define and explain the HR Scorecard.
4. Explain five primary HR metrics.
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References
Hooper, J. A (1984). A Strategy for Increasing the Human Resource Department’s Effective-
ness; The Personnel Administrator, Vol. 29; pp. 141 -150.
Krell, E. (2011). Auditing Your HR Department; HR Magazine, September 2011; pp. 101-103.
Becker, B, E., Huselid, M, A., Ulrich, D. (2001). The HR Scorecard: Linking People, Strategy,
and Performance; Harvard Business School Press, Boston.
Beatty, R, W., Huselid, M, A., and Schneider, C, E. (2003). New HR Metrics: Scoring on the
Business Scorecard, Organizational Dynamics, Vol. 32, pp. 107 -121.
Chairman of the Joint Chiefs of Staff, U.S. Army (2012). Information Operations. Joint
Publication 3-13. Joint Doctrine Support Division, 116 Lake View Parkway, Suffolk,
VA, p.20.
Johanson, P. (2009). HRM in Changing Organisational Contexts. In D. G. Collings & G.
Klerck, G. (2009). Industrial relations and human resource management. In D. G. Col
lings &
G. Wood (Eds.), Human resource management: A critical approach (pp. 238-259).
London: Routledge.
Mondy R. Wayne and Judy B. (2014). Human resource management (13th ed.).
Harlow, England: Pearson Education Limited. p. 28. ISBN 978-0-13-304354-9.
Paauwe, J., & Boon, C. (2009). Strategic HRM: A critical review. In D. G. Collings, G.
Wood (Eds.) & M.A. Reid. .Human resource management: A critical approach (pp.
38-54). London: Routledge.
Stene Trine.; Trevisani D. and Danielsen B. (Dec 16, 2015). Preparing for the unexpected.
European Space Agency (ESA) Moon 2020-2030 Conference Proceedings.
doi:10.13140/RG.2.1.4260.9529.
Trevisani D. (2016). Communication for Leadership: Coaching Leadership Skills (2 ed.).
Ferrara: Media lab Research. p. 21. ISBN 978-1-329-59007-6.
Kroll, K, M. (2006). Repurposing Metrics for HR; HR Magazine, July 2006, pp. 65-69.
Flores, R, A. (2006). Labour-Cost Metric Better than FTE Count; HR Magazine, September
2006, pp. 23-24.
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CHAPTER SIXTEEN
CASES AND ISSUES IN HUMAN RESOURCE MANAGEMENT
LEARNING OBJECTIVES
The overall objective of this chapter is to help professional students gain adequate level of
understanding in handling issues in HR management and offering balanced advice to their em-
ployers.
16.0 Introduction
Globalisation has reduced the entire world into a small village. The implication is that what
happens in one country has a way of affecting other nation-states. The level of global compe-
tition has increased. Increased globalisation has also brought to the fore, the increase in man-
agement problems. The aim of this chapter is to expose readers to problem-solving techniques
using case studies approach. The chapter covers an overview of the nature of case studies and
the steps in case studies solutions.
A case study, according to Obisi (2014) is a written or oral summary and explanation of a real,
unreal, or hypothetical problem. Case studies aim at explaining and unraveling real and imag-
inary life experiences. Case analysis encourage critical and independent thinking on the part
of those seeking solutions to the presented case. It should be noted that in resolving problems
183
in any given case, individuals are likely going to have different solutions to the same problem.
Each candidate is encouraged to create solutions from his/her perspective; hence, there are no
obvious right or wrong answers as solutions to the case could be many. Notwithstanding,
proferred solutions to any case must follow a sequence of logic and effectively and ethically
address the issues in question
16.1 Steps in Case Studies

1. State the case: The student is expected to, first of all, write out a brief summary of the
case
2. Identify the problems in the case: In this section or step, the issues in the case are
identified in clear statements or in bullet points.
3. Analyse the case: This is the analysis section. Each of the identified problems in step
two is reviewed to create an explanation of or expose as much as possible: the why,
how, and what of the problem.
4. Tentative or likely solutions: After the analysis, interim or hopeful solutions are
clearly stated. It is from these feasible solutions that the final decisions are reached.
Final solution: A further review is done to select the best solutions from the best of
feasible solutions stated in step four. The chosen solution at this point becomes the fi-
nal solution.
In a situation where there are specific requirements/questions to be answered in the case, stu-
dents/analyst are expected to ensure their solutions align with the fact of the case in specific
term. Examiners sought to test candidates’ ability to, technically analysis the issues in question
and offer workable solutions in line with generally acceptable principles.
16.2 Case Exercises
Case Number 1
DANGO NIGERIA LIMITED
Dango Nigeria Limited in 1997 employed a fresh graduate, Mr. Akamu, as a front line staff
with responsibility for customer care. Mr. Akamu showed so much of exceptional brilliance
that he became a toast of the head of operations, Mr. Dowell, as well, as the branch manager.
By the year 2000, all pioneer senior staff of the branch including the branch manager and the
HOPs had been transferred except Mr. Akamu. Mr. Akamu kept wondering why only he among
the other officers was left in the branch. No explanations came from anyone, including HR, to
184
justify the reason for such action. Was it out of hatred? Is it that the organisation has no policy
and standards on transfers? Mr. Akamu felt neglected and abandoned.
Mr. Akamu was eager to leave the branch also for three reasons; his contemporaries in the
branch had all been transferred; he also wanted to enjoy the transfer bonus paid to others, and
to escape the high level of insecurity prevalent in the town at that time. All his effort to be
transferred yielded no positive result.
In 2001, a competitor set up a branch on the same street with Mr. Akamu’s branch, and the
regional manager of that company invited him to join his organisation. Mr. Akamu was offered
two grades ahead of his present grade. It would have taken Mr. Akamu a minimum of four
years to attain that grade level in his organisation.
Your tasks:
a) Do you think there was any justification to have left Mr. Akamu in that branch when
his contemporaries have been transferred?
b) What could HR have done to remedy the situation?
Case Number 2
ABC BANK PLC
Mr. Dante joined Akweke branch of ABC bank Plc in 1990 from another commercial bank as
the head of operations. Three months after his appointment, a new branch of the bank was
opened in another city within the State brings to five the number of branches in that region and
Mr. Dante was re-deployed to the new branch as a business development manager. All his years
as a banker, he had always worked as an operations staff. He assumed the new position, and in
4 months of the branch’s operation, the branch recorded a marginal profit. It, therefore, became
the first branch in the North Central region to make a profit. By 1993, three more branches
were opened in the region, and that led to the split of the region into two areas, headed by area
managers. The area manager for Area I was operating from the head office.
In 1994, Akweke branch was engulfed by crisis resulting from fraudulent activities by the
branch manager and head of operations. The crisis affected the performance of the branch, and
the area manager was relocated to that Akweke branch on a rescue mission. One year after,
Akweke branch was still posting losses despite the resources (human and materials) that were
provided for the resuscitation of the branch.
The Area Manager was redeployed back to head office while Mr. John was appointed the Area
manager in an acting capacity. He was to oversee his branch and Akweke branch but should
move his office to Akweke branch. Ordinarily, running one branch was a big task, adding a
185
non-performing branch to it was a mega task. Without complaints, Mr. John embarked on car-
rying out the assignment. He reviewed the activities of the branch and discovered that most of
the staff were disenchanted and disoriented because of the level of fraud that was perpetuated
in that branch and the bad image it had with the head office. Mr. John worked on the staff,
organised weekly training sessions for them to rebuild their confidence and morale. The rela-
tionship between the branch and the head office was restored to gain their confidence and trust.
After three months, the branch that had been inconsistent loss position returned to profitability
without making any changes to the composition of both human and material resources. Before
he left for his branch, he restructured the entire branch, nominated one of the staff there as a
branch manager, and recruited additional hands for the branch. The branch continued to make
a profit and grew to become an “A” branch. Despite this achievement, Mr. John returned to his
branch without any reward for his efforts.
Your tasks
i) What are the human resources issues identified in this case?
ii) In your opinion, do you think Mr. John deserve any special reward or commenda-
tion?
iii) If you were Mr. John when such assignment comes up again, will you be happy
taking up the task?
Case Number 3
BUS NIGERIA LIMITED
Bus Nigeria Limited is a marketing conglomerate with branches all over Nigeria. Each state
headed by the state sales manager and the company is a performance-driven company. Mr.
Okonne was the state sales manager for Anambra State and was promoted senior manager in
January 2008 based on his exceptional performance and became the next in line to the South-
East Marketing Director. By March 2008, three new branches were opened in Enugu State with
three more under construction. Mr. Okonne was posted to oversee the proper take-off of the
new branches. The South-East Marketing Director with Human Resource Department ap-
pointed the Branch Managers without Mr. Okonne’s input.
Performance targets were set for the branches (the three active branches and the three under
construction) and were signed off with the understanding that the targets for the three branches
under construction will not be used to measure the performance of Mr. Okonne if they did not
start operations within the appraisal period. During the performance review period, the target
for the six branches was used as the basis for evaluation of the Mr. Okonne rather than the
targets for the three functional branches as earlier agreed. When Mr. Okonne protested,
HR/performance management unit at the head office insisted that the marketing director had
186
earlier agreed with them that the budget for the six branches is used. This decision was un-
known to Mr. Okonne.
At the end of the appraisal period, the three branch managers had their appointment confirmed
based on Mr. Okonne’s recommendation as a result of their branches’ performance while Mr.
Okonne who has never been queried for below-average performance or for anything else was
asked to resign for not meeting the State’s target for that financial year. At the time, he resigned
on December 24, 2008, Mr. Okonne had put in 7 years of continuous service to the company.
Your tasks
1) Do you think the Regional Marketing Director acted in good faith by agreeing on a new
target for the area without Mr. Okonne’s knowledge?
2) What could the HR/Performance Management team have done under such circum-
stance?
3) Was the compulsory resignation of Mr. Okonne justified?
4) What are the performance management issues identified in this case?
5) Advise Bus Nigeria Limited on how best to deal with such an issue in the future.
Case Number 4
The world was hit by the global financial crisis in the year 2007 through 2008. In response to
the worldwide melt-down, organisations adopted several forms of survival strategies.
Anwuanwu Nigeria Limited took a strategic decision to merge with one of its competitors,
Amanam Nigeria Limited. The merger could be said to be of two strange bedfellows as they
just needed the merger to continue to exist not because of shared business ideals or culture.
The merger was concluded without following due process.
At the conclusion of the merger, a new entity was formed named Anwuama Nigeria Limited,
a combination of names of the merging entities. Not too long after the merger, several issues
began to crop up; the salary scales were not the same, the cultures were way apart as while one
operated a public sector related work culture, the other was more of private business work
culture. They both had business offices in the same location serving the same set of customers.
The members of staff of the merging organisations still see themselves as competitors rather
than colleagues working in the same organisation.
Your tasks:
a) Give this case an appropriate title.
b) As an Organisational Development expert, what advice do you have for the new Man-
agement?
c) Do you think anything could be done to remedy the crisis?
187
d) What is the role of HR in the resolution of these issues?
Case Number 5
The Ministry of Stomach Infrastructure is one of the most sought after ministries in the Federal
Republic of Gbedu. The public service rule clearly states the policies that guide the practice of
human resource management in the ministries and extra-ministerial departments. However,
people were appointed into the ministry without due process – no advertisement for vacancies,
no employment interviews were held, and certificates and competences were not used. The
primary criteria used for such appointments into the Ministry of Stomach Infrastructure were
connections with those in power and candidates’ ability to pay.
A new minister was recently appointed and was not satisfied with the happenings in the min-
istry, especially with the quality of human resource management. The minister appointed you
as a consultant to audit the ministry’s workforce. In your findings as expected, you documented
lots of irregularities in the appointments and promotions, job placements, performance ratings,
among others. To sum it up, you observed that almost all the provisions of the public service
rules were breached.
You are required to:

i) Advise the Minister on the appropriate actions to take in dealing with the identified
problems.
ii) Put up a position paper on how to forestall future occurrence.
Case Number 6
Tosin is a banker with a class. She is tall, dark, and beautiful with a clear British accent. She
owns two modern cars with access to any vehicle her company-owned, and lives alone in a
choice apartment close to the Lake. All these are credited to her outstanding performance in
the Marketing Department, by exceeding targets required of her every time.
She has been given a new target for the first quarter of 2019, which doubles the last target of
the last quarter of 2018. She takes up the challenge as usual with a faint smile.
Back in her office Tosin maintained a blind stare at the ceiling, reminiscing on how she stum-
bled down the stairway while visiting a potential customer in his office the previous month and
how the doctor had diagnosed the cause as lack of rest and hypertension which also came with
a pounding headache and chest pain.
To the Bank, she was seen as a great asset. To her colleagues, she was the champion to beat.
She was financially buoyant and could buy any material thing that she so desired. She felt
hallow.
188
Questions:
1. Discuss the policy of an organisation on work-life-balance against profitability using
hypothetical examples.
2. If you were in the same situation as Tosin, what would you have done differently?
Case Number 7
The Managing Director of Aruna Limited has just scheduled a meeting to present a proposition
before the board members. In the meeting, he recounted how he met Ejike at a human resource
function and how he sparked his imagination on a certain subject. Ejike had told the MD how
a crèche could save a company valuable man hours lost to the activities of parents who have
the task of taking care of their children. The MD, who had been analyzing the man hours lost
to workers who have to take care of their babies for one reason or another was taken by the
idea.
He carefully presented to the board a possibility of running a day-care through a consultant in

a section of the building where parents can keep their children in safe hands while they are on
duty, with the expenses paid by the company. Some board members argued that the proposed
part of the building could be used for more productive ends; others claimed the idea was bril-
liant, while some were indifferent.
Questions:
1. As a member of the Board, how would you espouse your conviction in the idea and
why?
2. Would you term the conversation with Ejike as an attempt at work-life balance? Discuss
your views.
Case Number 8
Richard and Sons Limited have a vision of being the largest transporter of goods in the North-
ern region of Kenya. They currently run their business in a public garage, with staff strength
of 5 workers. During the employment interview, the manager had told the workers that they
would work for commission and also, they would be given 10% of the annual profit of the
business at the end of the year. The workers worked overtime and also did marketing for the
business to grow. Before long, the financial status of the company improved.
At the close of business for the year, the Manager had a meeting with the staff to felicitate with
them on the progress of the business, and to intimate them on the plans for the incoming year.
In his speech, he acknowledged the efforts of the staff, promising them a better year ahead. He
also unveiled the plan of the company to move into a private garage which will also house the
company’s new affiliated services of a mechanic workshop and tyre shop. He ended his speech
by wishing them a prosperous new year in advance. The workers are not unionised; neither do
189
they have a letter of appointment. They are timid to talk of matters previously agreed on without
documentation.
Questions:
1. What issue(s) should be addressed by the Manager?
2. What could be the outcome of this imbalance of trust?
3. How would you rather manage employee engagement?
4. As the HR Manager, what employee engagement strategies would you propose?
Case Number 9
The Electrical Engineering department of Yoichinai Plc recently celebrated within its depart-
ment two years of providing constant electricity in the company. At the start of business in the
new year, recession and ongoing blackout crept in, and most of the budget was spent on diesel
and generator maintenance.
The recession persisted, and the fuel price increased, this puts more pressure on the generators,
which eventually broke down at about the same time. The head of the engineering department
advised the staff to temporarily switch to solar power, which was not powerful enough to pro-
vide the needed energy for a long time.
In a bid to beat the situation the head of engineering approached the CEO to give him the
authority to rent a mobile generator for the period, within which the generators will be repaired,
stating that the department had already exceeded its budget for the year due to the galloping
pump price.
Questions:
1. As the CEO. of Yoichinai Plc how would you bridge this gap?
2. Should the relationship with the mobile generator company be encouraged? Discuss.
Case Number 10
In 2002, Bolaji met Franca in a restaurant in France, and a conversation ensued. They both
came to a realization that they were both engineers who had a penchant for building green
energy machines. Bolaji thought of expanding his business by making Franca an associate, the
idea sounded right to Franca, and she agreed.
More than a decade, Franca has lived and worked in Bolaji’s country without a permit. Franca
had also brought 22 other workers from her country to work in the company. All these went
unrecorded by the relevant authorities.
Questions:
190
1. What are the legal implications involved in this case?
2. What is the role of the Ministry of Interior on issues concerning immigration of expat-
riates?
Case Number 11
One aspect of HRM that Jennifer studied in the university was HR planning. Her Professor in
the course emphasized its importance, especially for large organisations. While Carter Clean-
ing is certainly not significant at this time – with only six centres, each staffed by its on-site
Manager and seven employees, on average – she wonders if HRP might help to resolve some
of their current problems.
At this point, there is only an informal succession plan – both Jennifer and her father are count-
ing on the fact that Jennifer will take over the firm when her father decides to retire. Carter
Cleaning is heavily dependent on its Managers –three white males and three white females –
and skilled cleaner-spotters and pressers. Employees generally have no more than high school
education (often less). The market for skilled staff is very competitive. Over a typical weekend,
dozens of ads for experienced pressers or cleaner-spotters can be found in area newspapers.
Paid little more than minimum wage, people in this job tend to move around a great deal. Vir-
tually all of the incumbents in these positions at the centres are women. Turnover (as in the
stores of many Carter Cleaning’s competitors) sometimes approaches 400 percent.
Jennifer was pondering the following questions:

1. In what ways, can HRP benefits Carter Cleaning?
2. Should they decide to proceed with HRP, what steps should Jennifer and her father
take?
3. What HRP techniques would be appropriate for them to use?
4. What other issues would have to be addressed to make HRP worthwhile?
191

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STUDY PACK

ADVANCED HUMAN REOURCE MANAGEMENT II

CIPM House, 1 CIPM Avenue, Off Obafemi Awolowo Way,

CHAPTER ONE Page

PEOPLE MANAGEMENT ACCOUNTABILITIES 1

HUMAN RESOURCE POLICIES AND PROCEDURES 16

COMPENSATION AND BENEFITS MANAGEMENT 21

PUBLIC SECTOR HUMAN RESOURCE PRACTICE 84

EXPATRIATE MANAGEMENT 102

HUMAN RESOURCE BUSINESS PARTNERSHIP 114

EMPLOYEE ENGAGEMENT 119

WORK-LIFE- BALANCE 126

ORGANISATIONAL HEALTH, SAFETY AND ENVIRON. ISSUES 131

HUMAN RESOURCE METRICS AND ANALYTICS 138

Personnel management is “the planning, organizing, compensation, integration and mainte-

His/her role can be summarized as:

3. He/she is a counsellor. As such, personnel manager attends to problems and grievances

4. Personnel manager acts as a mediator – He/she is a linking pin between management

1.2 Human Resource Management

1.3 Job Analysis and Design

1.3.1 Methods of Job Analysis:

a. What is the title of your job?

1.5 Compensation Management

1.6 Performance Management

Armstrong (2012) defined performance management as a systematic process for improving

Evaluating an employee’s performance based on pre-defined competencies and their behav-

Setting up of training agenda in every work environment involves the following:

1.9 Participative Management

Participative management is an open form of management where employees have a strong

1.10 Employees’ Relationship Management

1.10.1 Identification of driving objectives

c. Open andhonest communication - Communication is critical to establishing strong em-

d. Measuring and monitoring results. Effective employee relationship management re-

e. Relationships are interpersonal. Ultimately, employee relationship management re-

1.11 Career Development:

Growth, to an employee, means one or more of the following:

Career development is not a mere management responsibility. It is a composite organisational

1.12 Talent Management

1.13 Human Capital Management

1.15 Knowledge Management

2) Management perspective – focusing on determining, organizing, directing, facilitating,

3) Hands–on operational perspective – focusing on applying the expertise to conduct ex-

1.16 Employee Retention

1.17 Social Entrepreneurship

1.19 Work-Life Balance

4. What is knowledge management? Discuss the three perspectives from which

5. Why is job analysis relevant in all areas of people management accountabilities?

2.1 Overview of Human Resource Policies

2.2 HR Policy Formulation:

2.2.1 BEGINNING EMPLOYMENT

Recruitment and selection

1. job profile/person specification

Elements of an induction policy:

1. organisation information - background and structure; departments; products and ser-

2.2.2 DURING EMPLOYMENT

1. health and safety

Elements of a diversity policy:

Learning, training and development

1. the organisation's vision for learning and development;