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HUMAN RESOURCE
MANAGEMENT

1

Table of Contents
CHAPTER ONE: INTRODUCTION
...
17
CHAPTER THREE: MANPOWER TRAINING AND DEVELOPMENT
...
40
CHAPTER FIVE: HEALTH AND SAFETY
...
56

2

CHAPTER ONE: INTRODUCTION
Human resource management (HRM or simply HR) is the management of an
organization's human resources
...

Human Resource Management is an integral part of general management
...

Organizations need resources to achieve their designated goals and objectives
...

An organization must first identify the staffing needs by carrying out Human
Resource planning, job analysis and then conducting effective recruitment and
selection
...


3

During the period when employees are on employment they should be made to feel
part of the organization by meeting individual personal needs which should be
integrated with organizational goals
...
HR Planning
b
...

 Integration
...

Differences between Human Resource and Personnel Management
According to P
...
Tripathi (2002):
 PM is a traditional, routine, maintenance-oriented, administrative function
whereas HRM is a continuous, on-going development function aimed at
improving human processes
...
HRM follows
and must take into account the linkages and interfaces
...
It is not considered in isolation from the
larger organization reactive, responding to demands as and when they arise
...

 PM is the exclusive responsibility of the personnel department
...

 The scope of PM is relatively narrow with a focus on administering people
...

 Important motivators in PM are compensation, rewards, job simplification and
so on
...



In PM improved satisfaction is considered to be the cause for improved
performance but in HRM it is the other way round (performance is the cause and
satisfaction is the result)
...
g
...


5

 Ensure that the organization's employees are informed of policy contents and its
implications in the achievement of the organization's goals
...

 Policies should be broad and allow discretion in decision making
...

 They must be made clear to all employees who are affected by them
...

 They must conform to government rules and regulations
...
Policies are drafted by a
personnel committee and approved by a chief executive officer
...

Line managers not only bring experience to the personnel committee but they are
also more likely to support the policies if they are involved
...

6

 Policy Approval
...
The policy once approved should be
communicated throughout the organization
...

 Written in order to preserve it against loss
...

 Reasonably stable but not rigid i
...
it should be periodically revised, evaluated,
assessed and should have a built-in resilience for adjustment from time-to-time
...

 It should indicate the management knows that workers prefer to deal with
management on an individual basis
...

 It should be a result of careful analysis of all the available facts
...

 It should be consistent with public policy i
...
with the spirit rather than the letter
of the law so that the intentions and course of an organization are appreciated in
terms of public opinion from the standpoint of the national economy and social
justice for the employees and the communities at large
...

 It should be progressive and enlightened and must be consistent with
professional practices and philosophy
...

 Prevailing practices among sister concern organizations in the neighborhood and
through the country in the same industry and internationally
...

 Employee suggestions and complaints
...

 National legislations/laws
...

 Attitude and social values of the society
8

 Ethical points of view or social responsibility of the organization towards the
public
...

Decision making is more consistent when the policy is defined and known
...

 They promote fairness for employees
 They can help to defend the organization in the event of a challenge in a court of
law
...

The terms “manpower planning” and “HR planning” are synonymous
...

Wickstrom says that manpower planning consists of a series of activities:a
...

b
...

c
...

d
...

Need for Manpower Planning
Recruitment -To carry on its activities every organization needs personnel with
necessary qualifications, skill, knowledge, work experience and aptitude for work
...


10

Since large numbers of persons have to be replaced because they have retired, died
or incapacitated due to physical or mental ailments, there is a constant need for
replacing such personnel
...

In order to meet the needs of expansion programs, this will become necessary
...

Career development and succession planning
Training and Development
Utilization of Staff
Determination of Human Resource Requirement
The critical decision facing most organizations before procurement is the
determination of the number and type of personnel they might require t a particular
time both present and future
The purpose of HRP, therefore, is to ensure that certain desired number of persons
with the correct skills, knowledge, aptitude, attitude, qualifications will be available in
the organization at some specific time in the future
...


11

Human Resource demand forecasting
It is concerned with the determination of an appropriate number of the labor force
which will be needed to work in the organization in future
Labor demand forecasting may be determined by long range (strategic
management) or short range factors
...

 Technological Trends:- Advanced technology has an effect on the nature and
mixture of jobs available e
...
advance in computer technology resulted in the
decrease in the number of bookkeepers and an increase in the number of
computer programmers
 Economic Trends: - The movement from prosperity to recession and back to
prosperity causes considerate problems for HR executives
...

 Affirmative Action: a firm may be given a condition by the court or as a
government requirement to hire categories of employees

12

 Relocation of Plant/Closing down: Recession in the economy may lead to
temporary or permanent closure or relocation
...

 External supply -supply of labor from the labor market
It is an internal supply of labor which is of great concern to HR planners
...

At the end of such periods, a comparison is made between projected supply and
projected demand for labor
...

Job analysis
The process by which qualitative and quantitative requirements are determined is
known as job analysis
...

Job analysis is defined as the process of discovering and identifying pertinent
information related to the nature of the specific job
...
Information to be collected about these items may include frequency,
duration, effort, skill, complexity, equipment, standards, etc
...
The work environment may include unpleasant
conditions such as temperature extremes
...

 Tools and Equipment, some duties and tasks are performed using specific
equipment and tools
...

 Relationships Supervision is given and received
...

 Requirements, the knowledge, skills, and abilities required to perform the job
...
A job description is an organized factual statement of job contents in the form of
duties and responsibilities of a specific job
...

 The nature of authority- responsibility relationships
...

 Relationship of that job with other jobs in a concern
...

2
...

The contents are:
 Job title and designation
 Educational qualifications for that title
 Physical and other related attributes
 Physique and mental health
 Special attributes and abilities
 Maturity and dependability
 Relationship of that job with other jobs in a concern
...

 Job information derived from job analysis and resulting programs may be used
for many purposes:
i
...


Recruitment, selection, and placement

iii
...


Job evaluation

v
...


Performance appraisal

16

CHAPTER TWO: RECRUITMENT AND SELECTION
Recruitment is an immediate activity between HRP and selection whose primary
function is to serve as a link between the two
...

Definitions:
 According to Beard Well and Holden (1997), recruitment and selection is a
process concerned with identifying, attracting and choosing suitable people to
meet the organization's HR requirements
...
It involves attracting the right
number of people with the ability needed to fill the available jobs
...

 Enables the organization to improve the hiring standards i
...
selection of
appropriate candidates
...

 Helps the organization to maintain constant wages and salaries in their wage and
salary structure
...


17

 Increasing pool of qualified job applicants at the minimum cost to the
organization
...

 Helps to reduce the possibility that applicants once recruited and selected will
leave the organizations after a short time by providing them sufficient
information about the organization thus allowing them to see and make choices
themselves
...

 Mergers and takeovers
...
The need for
critical skills lacking in the organization for the top position of the organization
e
...
General Manager with specific qualifications
 Starting a new organization demands that you employ people
...
When technology changes
there is a need for i
...
training employees and promoting them to it into the
system
...
e
...
Alternatively, the existing staff can be
retrained
...
e
...
e
...
g
...

 Government policy on recruitment i
...
affirmative action
...

Sources/types of recruitment
Internal sources- these include personnel already on the payroll of the organization
...
They
usually include new entrants to the labor force
...

Transfer
 Change in job assignment
...

Advantages of Internal source of recruitment
 Familiarity- the organization and its employees are familiar with each other
...
Similarly, employees also know about the working conditions and job
requirements of the vacancies
...
g
...

 Economy- the cost of recruiting internal employees is minimal
...

 Motivational value- internal recruitment is a source of encouragement and
motivation for employees
...

Limitations of internal recruitment
 Restricted choice- internal recruitment restricts the option and freedom of the
enterprise in choosing the most suitable candidate for the vacancy
...

 Absence of competition- in the absence of competition from qualified candidates
from outside employees is likely to expect automatic promotion by seniority and
sure prospects
...

External sources
 Advertising- advertisements in newspapers and periodicals are one of the most
important methods of recruitment today
...

 Gate hiring- in a country like ours where there is a large number of unemployed
people it is usual to find job seekers standing at the factory gates
...

 Waiting list- many organizations prepare a waiting list of candidates who have
gone through the recruitment process and who have not been employed
...

 Unsolicited applications- one of the important sources of recruitment is
unsolicited applicants who send their request for appointment against a vacancy
if any
...

Advantages of External Recruitment

21

 Provide the company with new and fresh ideas
...



May produce less turmoil and be less upsetting to the current organizational
hierarchy
...




Can increase the diversity within a company
...


Potential Disadvantages:
 Takes longer and can cost the company more
...



Destroys incentive for current employees to aim for promotion, therefore
damaging productivity
...




Current employees may produce conflict over new ideas brought in by the
outsider
...


22

It is the process of choosing the most suitable candidate from applicants for the
various jobs in the organization
...

Selection methods
There is no single universally accepted selection process followed by all
organizations
...

The following steps involved in the standard selection process:
 Preliminary interview
 Application blank
 Selection Test
 Selection interview
 Reference checks
 Final selection
Preliminary interview
Follows screening of candidates, this is to eliminate unsuitable or unqualified
candidates from the selection process
...

Most organizations require job seekers to fill up an application
...

Some define it as an objective and standardized measure of a sample behavior
...
It is a face-toface interaction between the interviewee and interviewer
...
e
...

Physical examination
The last tool used in selection processes of physical examination the main purpose of
conducting physical or medical examination is to have prior knowledge of job
requirement with the physical ability of the candidate
...

Placement and induction
After successfully undergoing through selection process individual candidates are
offered employment and place on the job thus placement refers to assignment the right
person to specific jobs i
...
relating his or her qualifications with the job requirements
...


24

Ability tests include the following: Aptitude test
 Achievement test
 Intelligence
 Judgment
Personality tests:
 Interest test
 Personality test
 Projective test
 Attitude test
...

 Tests are better at predicting failure than success
...

 Tests have no precise measures of one’s skills and traits but only sample one’s
total behavior
...
e
...

25

 Tests should be designed, administered, interpreted and evaluated only by
trained and competent persons
...

Selection interview
The next step in the selection process is an employment interview
...

An interview can be defined as an attempt to secure the maximum amount of
information from the candidate concerning his/her suitability for the job under
consideration
...

 There is always variation in offering to score to the candidates by the
interviewers
...

 A single characteristic of the candidates found out on the basis of the interview
may affect the judgment of the interviewers on other qualities of the applications
(hallo effect)
...



An interview is a time-wasting and expensive device of sample selection
...

 An interview should be conducted by competent trained and experienced
interviewers
...

 The interviewer should be supplied with a specific set of guidelines for
conducting the interview
...

 Interviewers should show their sensitivity to the interviews sentiments and also
a sympathetic attitude to him/her
...

Benefits of good placement


Reduces employee turnover
...




Reduces accident rates



Improves morale and commitment



Improves performance and productivity



Reduces the cost of operation



Improves career growth and development i
...
individual remains focused on a
particular career
...

Objectives of the Induction Programme


To introduce new employees to the organization's work procedures, rules, and
regulations



To familiarize employees with the work environment, fellow workmates,
immediate supervisor, and departmental head



To set new employees at ease in their new jobs and instill confidence



Reduce fears and anxiety associated with work in a new environment such as
feelings of insecurity and nervousness



To explain to new employees duties and responsibilities and introduce the
person to report to when he has a problem



To introduce new employees to general employment conditions of the
organization i
...
organizational policies and procedures

Areas covered by an induction programme
 The significance of the job with all necessary information about it including job
training and hazards
 The company, its history, products or services, the process of production and
major activities involved in an individual work
 Structure of the organization i
...
the geographical location of the plan and the
faction of various departments
...

 Social benefits, insurance and pension scheme, etc
...

 Improves employee relationship which results in team spirit in the organization
 Helps organizations reduce the cost of operation i
...
an employee does not
waste/spend unnecessary time doing personal work
...

Development is a long term educational process utilizing a systematic and
organized procedure by which managerial personnel can learn conceptual and
theoretical knowledge for general purpose
...

Training is the act of improving/updating the knowledge and skill of an employee
for performing a particular job
...

 A change in the product may necessitate training not only on production
methods but also in the marketing of a company's goods and services
 To make employees be multi-skilled and improve their performance
30

Development objectives
 Prepare managers to cope with increasing challenges of modern business
especially competition and technological changes
 Improves managers’ performance in their present jobs
 Prepare managers for higher managerial positions
 Build a steady source of supply of competent managers at all managerial levels
i
...
create reserves for managers
 To attract qualified managers to different positions
 To impart conceptual skills and theoretical background to managers who have
no past experience
Types of training
i
...


Off-the-job training

On-the-job training
The worker by this method learns to master the operations involved in the actual job
situation
...
The technique involves direct personnel instruction and guidance
usually with extensive demonstration and continuous critical evaluation and
correction
 Job Rotation
...

In each section, new methods of doing the job are learned
...
A short course is given to employees to make them
familiar with the organization's terms and conditions of service
...
Can be traced back to medieval times when those intended
of learning trade skills bound themselves to a master craftsman to learn by
doing work under his guidance
...
Large organizations are frequently provided with vestibule schools
in preliminary to actual shop experience
...
Trainee uses company resources while training
...

 Learner practices knowledge acquired under the supervision of experienced
employees
...

 No time is given to the learner
...

Disadvantages of On-the-Job Training
 There will always be interruptions
...

 There is time wastage for an experienced employee
...

 It can be discontinued at any time the trainer decides to drop out or is
engaged in other activities
...

In this method development of trainees is primary
...
Lecturing is the most traditional form of formal
training methods
...

 Conferences
...

 Brainstorming
...
A problem is posed
and ideas employed from employees
...

 Simulation
...
Simulation is a presentation of
the real situation in the organization in the training session
...
The trainee is likely to develop a career in
line with training courses
 Trainees exposed to the syllabus which helps them to remain focused
Disadvantages of Off-the-Job-Training
 Expensive in terms of costs to be incurred
 Only a part of the curriculum may be relevant to participants
 May be more theoretical than practical

33

 Participants were withdrawn from work for a long period
...
Internal
and external approaches may be used
...
Managers may be rotated to various divisions or branches
...

 Assignment to Committees or Boards
...

 Appointment to “Assistant to” or “Deputy to” Positions
...

 Case Study Method
...

 Coaching by Senior Manager
...


34

 Sensitivity Training / T Group
...
It is an interactive method of development which
sensitizes mangers on behaviors in relation to potential job performance
...
Managers may be appointed in acting
capacity pending confirmations
...

External development methods
 University/College Sponsored Programs
...
It also includes development programs offered by professional; training
institutes e
...
Institute of Bankers, Institute of Personnel Management, Institute
of Insurance
...
g
...

 Secondment to other firms in a similar industry, i
...
exchange development
programs
...

Performance appraisal
Performance appraisal means appraising employees’ performance against
established performance standards or job requirements
...


35

Objectives of Performance Appraisal
 To evaluate subordinate performance and understand their weaknesses and
strengths
...

 To provide a rational basis for reviewing salaries and rewarding employees in
relation to their contribution towards goal achievement
...

 To identify potential performance and possibility for promotion or transfer
...

 To provide information for succession planning
...


Types of performance appraisal
 Formal
This is a more rational and orderly appraisal of individual performance
...

 Informal
This refers to the continuous assessment of individual performance by a manager or
supervisor in the course of his work
...

Methods of appraisals
36

 Critical incident method
This format of performance appraisal is a method which is involved in identifying
and describing specific incidents where employees did something really well or that
needs improving during their performance period
...

 Paired comparison analysis
This form of performance appraisal is a good way to make full use of the methods of
options
...
Each option is in comparison with the
others in the list
...

 Graphic rating scales
This format is considered the oldest and most popular method to assess the
employee’s performance
...

 Essay Evaluation method
In this style of performance appraisal, managers/ supervisors are required to figure
out the strong and weak points of staff's behaviors
...
It is often mixed with the method of the graphic rating
scale
...
The form is a mix of the rating scale and critical incident techniques to
assess the performance of the staff
...

Managers will make comparisons of an employee with the others, instead of making
a comparison of each employee with some certain standards
...
This method mostly cares about the
results achieved (goals) but not to the way how employees can fulfill them
...

Barriers of Performance appraisal
 Soft Spot Syndrome
...

 Halo effect/Stereotypes
...
g
...


38

 Central Tendency
...
The object is to please
everyone in the department
...
This is basing appraisal on the latest behavior
demonstrated by employees e
...
some employees may perform poorly during
the months of the year but when appraisal time approaches, they may put more
effort and this effort may influence the appraisal outcome
...
Involves being too lenient to the extent that nearly every
employee gets a higher rating
...
)
 Pay that is contingent on performance (merit increases, bonus, commission, etc
...
g
...
g
...
They should form a vital component of the HR policy of an
organization
...
In the absence of an objective policy, wage rates
40

may be based on personal and arbitrary decisions
...
This result is low morale and inter-group conflict
Objectives
 Employees are paid equitably according to their skills and abilities
...

 Employee’s motivation is enhanced and morale is stepped up
...

 Reduces the friction and grievance of employees over wage differentials and
inequities
...
The result is
increased productivity and profits
...

Ways of achieving the objectives
To meet these objectives the HR managers should do any or a combination of the
following:
 Industry rates
Research the rates being paid to various categories in the market in order to
determine what rates ought to be paid in the company
 Engage in the collective bargaining process and in doing so secure acceptance of
a particular rate of pay
 Efficiency of performance
This is a major factor in the determination of wages payable to any employees
...
This can be done by having a range of pay for
each job scale such that a newly appointed person will be paid at the minimum of the
scale
...
The wage policy must be linked with the productivity of
the workers
...
Due consideration should be given to such
factors like skills, length of time required in learning, etc
...
The wage policy should result in the reduction of the
unit cost of manufacturing
...
The wage policy should include an incentive system for
efficient workers
...
The wage policy should have a proper wage
differential based on proper job evaluation so that wages earned by different
categories have proper relation to the content and its worth
...
The wage policy should guarantee a minimum
wage to protect the interest of workers against condition beyond their control
...

 Flexibility
...

 Simplicity
...


42

 Communication
...
To maintain good industrial
relations it is necessary that the employee and union must be adequately
informed
 Similar to other firms
...

Factors affecting Wage Rates
 Demand and Supply of Workers
...

 Cost of Living
 Condition of Product Market
...

 Comparative Wages
...

 The productivity of labor
...

 Government Policy
...

Psychologically, an employee is often more interested in what fellow employees are
receiving compared to what he/she is receiving
...

 Promotions
Allow upward movement of existing personnel in line with long or good service
 Inflation
Advice the organization on conditions of arising wage levels or inflation
Job Evaluation
This is the process of determining the relative worth of each job in the organization
...

Aims of Job Evaluation
The aim of the programme is to determine the relative worth of each job and on this
basis set wages and salaries of employees
 It provides useful information and data for effective wage and salary
administration and smooth union management negotiations on wages
...

44

 The major objective is to eliminate any pay inequities that may exist due to
unreasonable pay structures
 The relative value of each job is established by identifying the factors which
define value
...

 Experience - This is the length of time required by an individual to perform and
have enough knowledge for the job
...

This refers to the physical or mental effort on demand required by the job
...
It also involves responsibility for the prevention of theft or loss of equipment
...

 Safety
This is the responsibility and care that must be exercised to prevent injury to
others
...
Different jobs expose
people to different risks
...

Kinds of Payments
 Basic Pay
This is the irreducible minimum rate of pay (salary or wage)
...
In other cases, it’s a basis
on which earnings are built by the addition of one or more of other elements in
payment
...
Payments for educational qualifications and for
supervisory responsibilities are common special additions
...
It may include medical allowance, accommodation allowance, sick and leave
allowance and pension schemes
 Premium
This is paid where employees work at inconvenient times such as shifts or
permanent nights
...
However, it is not guaranteed as there is always the
opportunity for the employer to withhold the provision or for the employee to decline
the extra hours
...
It includes payment by results schemes, commission paid
to salespeople and other performance related to pay schemes that are based on the
achievement
...

 Bonus
This is where the employer gives employees an opportunity to share in the profits of
an organization
...

Other forms of rewards:
 Promotions
47

 Transfers
Criteria used for promotions and transfers
 Seniority/Experience
This is the number of years or length of time in a particular job scale or position
...

 Job knowledge /Expertise
Some people are talented in their areas of specialization and therefore their
performance or efficiency is exceptional compared to others
...

 Education/Academic Qualifications
This is the level of education an employee has attained either before or after
employment
...

 Age
This is the age of an employee compared to others
...

 Personality traits
Such as loyalty, honesty, trustworthy, cooperative, integrity, etc
...
Safety at work started in earnest
in 1870 in the U
...
A
...
In
1906, the Massachusetts Board of health was started due to safety concerns
...
This gave rise to the establishment of an
(OSHP) occupational health and safety programme in industries
...
This act sets
specific standards regarding practices in all work places including determining
punishments to be meted out against offenders
Safety programmes:
 Analysis of H&S performance
The programme must be based on an analysis of the facts on the organization of
H&S as it exists, the procedures used and the results obtained
It involves:
i
...


Review of standard procedures

iii
...
These policies should be followed by both management
and employees
 Occupational health programmes and procedures
These programs are concerned with identification and control of health hazards
arising from toxic substances, radiation, dust, fatigue, the stress imposed upon the body
and mind at work
 Accident prevention programmes and procedures
Identifying the cause of accidents and conditions under which they are most likely
to occur
...
They have to be
planned and managed
...

This evaluation should provide feedback to be used in improving health and safety
performance
Causes of accidents

50

 Technical
These are unsafe working conditions caused by deficiencies in the plant, machinery,
tools, equipment, materials, and general work environment, etc
...

 Human
This would include unsafe situations such as deficiencies of individual on
carelessness, reckless, improper attitude, mobility to perform the job well
...

Health programmes
Prevention of accidents is only part of a comprehensive employee safety
programme
...
g
...

In job health what is considered is physical as well as mental health
 Physical health
This concerned with work-related and non-work related diseases e
...
Common
ailments, chronic diseases like cancer, heart trouble, ulcers, stress, strain, etc
...

How health programs can be enhanced
A well-designed health program is therefore important in any company to increase
productivity
It can be enhanced through:
51

i
...


Well-equipped staff clinic,

iii
...


Provision of medical insurance cover etc
...
It takes a toll through
alcoholism, high rate of accidents, high labor turnover and poor labor relationships
...
to rehabilitate mentally ill
employees
Stress at a glance
 Work related stress
Stress is a physical or emotional reaction to potentially threatening aspects of the
environment
...
In the majority of
companies, employees experience stress at one time or another
...
Some may
be overly worried while others are positively motivated to achieve more
...
Stressed
people are easily provoked to anger and find it difficult to relax
...
Highstress jobs include surgeon, secretary, examiner, astronaut, city mayor, principal,
headmaster, and cashier
...

 Role ambiguity
Employees will experience role ambiguity when they have inadequate information
about their role
...

It leads to stress related outcomes like psychological strain and dissatisfaction
...
Under load is a condition where employees
feel stressed either due to too few responsibilities or are given responsibility that does
not require full use of their skills and abilities
...

Employees may resign from a job due to high levels of stress
...
The eventual
result is reduced productivity
...
Employees take to this habit in the hope that they will
reduce work related stress
...
Workers may go berserk within and outside; they may also sabotage work to
break even with company or colleagues
 Reduced work performance
High level of stress causes a marked drop in work performance
...
g
...


54

 Interviewers can apply stress related interview questions to find the extent to
which a candidate can buffer stress
 Counseling programs can be initiated for therapy
 Increased worker participation in decisions affecting their work
 Team building helps enhance workgroup cohesiveness as many employees
feel they have a lack of social support
...
It occurs when the employment relationship is terminated and
the employee leaves the organization
The decisions can be initiated by the employer as well as the employee
...

Various occupations have different retirement methods, in all organizations, there
must be stipulated retirement regulations
...
It's the responsibility of the employer to make retirement plans for
employee and also educate them on how to plan for retirement and spend the period
...

Mandatory retirement benefits
 It’s simple to administer
 It creates an opportunity for younger employees to exploit their potential
 It aids human resource forecasts and plans
 It enables employees to plan for their exit well in advance

56

 Reduces inequities in decision making in regard to separation
Resignation
This is a voluntary termination of employment contract by an employee
...
However, sometimes it’s good
because it helps to cushion the company against impending redundancies
...
Some
permanent and pensionable jobs require a three-month notice
...

Dismissals
This occurs when an employee’s job is terminated by the employer due to poor
productivity or indiscipline
...
It is usually a traumatic experience because employees
suffer shattered egos
...

Death
This occurs when an employee dies while still working for an organization
...
Though it’s inevitable it leads to a great economic and social loss to organizations,
families, and friends
...
g
...
death can no longer be seen just like natural attrition but a major decimator of the
entire workforce and work skills
...

 Redundancy
It is any situation where changes in the organizations economic, operational, or
technological position result in reduced demand for manpower
...
It’s therefore imperative that in case of an imminent redundancy where a
company is unionized, must consult the relevant trade union well in advance about an
impending redundancy
Types of redundancies
 Job Redundancy
This occurs when a particular job ceases to exist but the incident employees are
assigned alternative work or job within the organization
 Worker redundancy
Occurs when employees lose their employment because of overstaffing i
...
very
little work being done by too many people
Measures used to minimize problems of redundancy
 Planning ahead
It's important for the HRM to plan for reduced staff needs in the future
...

 Voluntary retirement

59

This is a method which is used for enticing employees to terminate their services
with a handsome pay-off or golden handshake or premium
...


Terminating part time service

ii
...


Removal of out-sourced contracts

iv
...


Applying temporary lay-offs

 Outplacement
This is where redundant employees are assisted in finding alternative
employment elsewhere
...
Competition may lead to a decline
in demand for the products
...
If redundancy is applied across ALL organizations, it
means all departments and all levels in the hierarchy will be affected
...
The principle is that the
longer the employee has been with an organization, the greater their right to a job and
therefore redundant employees should be selected on the basis of their length of service
...
In this way,
the organization retains an employee who has a long service and possesses the required
skills or experience
 Efficiency
Many organizations select their redundant employees from among those who show
poor work performance, habitual absenteeism, lateness, or any other form of
indiscipline
...
Less
qualified employees are the one normally selected for redundancy
 Age

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The older an employee is, the more easily he/she will be selected for redundancy
than the younger employees
...

 Layoff
 Normal termination

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