CHAPTER FOUR

HUMAN RESOURCE (PERSONNEL) MANAGEMENT

Introduction

The most important resource in an organization are its human resources that is, the people supply
the organization with their work talent, creativity and drive. Thus among the most critical tasks
of a manager are the selection, training and development of people who will best help the
organization meet its objectives.

4.1 The concept of Human Resource management

4.1.1 Definition:

Human Resource Management (HRM) is the management function that deals with the
recruitment, placement (positioning), training and development of organizational members.

4.1.2 The current trends in Human Resource Management

Human resource is changing its structure almost every day in accordance with the changes in
technology and to be on top, the HR industry has to bring out a working model into practice that
maximizes productivity and increase flexibility and efficiency simultaneously.

Managers and HR professionals should be aware of the current trends (drift or shift) in HRM and
adapt them quickly to ensure the company is at the forefront of innovation. As a result, it helps
the business to be in line with upcoming changes and quickly embrace the new technology.

From this perspective, some of the latest trend in HRM includes;

i. Shift to employee’s experience: Due to technological changes, most businesses are

shifting from employee’s engagement to employee’s experiences. It done by improving
employee’s career among others.
ii. Data security: Human resource automation allows employees’ to use software that can
backup data and protect critical company data and to also reduce errors that may occur
during manual processes.
iii. Mobile Access: This is where employees across all divisions and sectors access different
applications via mobile app. HR application in a given company can now be accessed
through mobile gadgets thus making work easier.
iv. Rise of intelligent self-service tools: The existence of intelligence self -service tools has
helped the HR department to conduct time training and ease of reporting.
In a nut shell, the HR world is changing daily and new trends keep coming up.

4.1.3 Differences between personnel and human resource management

Although both Human Resource management and personnel management focuses on people
management, if we examine critically, we realized many differences between them.

a) The nature of relationship: Personnel management focuses on more on

individual interest than group interest. HRM focuses on the fulfillment both
individuals and organizational goals. Here the organization’s needs are well
satisfies and that of the members are also well taken care of.
b) Relationship of power and management: The distribution of power in
personnel management is centralized where top managers have full authority in
decision making where even the personnel managers are not even allowed to give
ideas or take in any decision which involves employees. Meanwhile, in HRM
there is decentralization of power where the power between top management is
shared between middle and lower management groups. This is known as
Empowerment because employees play very vital role with Line and HR
managers’ beneficial decision for the organization.
c) Leadership and management role: Personnel managers’ emphasis on leadership
style which is very transactional. This style of leadership merely sees the leader as
a task-oriented person. On the other hand, HRM create leaders who are
transformational. This leadership style encourages business objectives to be
shared by both employees and management.
d) Contract of employment: In personnel management, employees’ contract of
employment is clearly written and employees must observe strictly the agreed
employment contract. This contract is so rigid that there will be no room for
changes and modifications.
 HRM does not on one- time life- long contract where working hour and other
terms and conditions of employment are seen as less rigid. HRM today gives
employees the opportunity and freedom to select any type of working system that
can suit them and at the same time benefit the organization as well.

4.2. PERSONNEL MANAGEMENT

4.2.1 Plan the enterprise human resource
In order to properly plan the enterprise human Resource, the following aspects are
needful; recruitment, selecting, training, performance, evaluation, induction, job,
evaluation etc
a. RECRUITMENT
Recruitment is the process of actively seeking out, finding and hiring candidates for a
specific position or job.
Recruitment is meant to provide an individual or a group of candidates large enough for
the organization to select the qualified employees it needs. Once a vacancy has been
notified to the personal management, they immediately undertake what is known as Job
description and job specification.
i. Job Analysis: This is a technique where all facts relating to a job are identified
and recorded. The information obtained here is to use to write up a job description
outlining the content of the job.
ii. Job Description: This is a broad statement of the purpose, duties and
responsibilities of the job. It states the skills and training required, the conditions
under which is the job done, relationships with other job and personal requirement
of the job.
Items mentioned will include;
- Job title
- Summary of the job
- Responsibility of the job
- Physical nature of the job
- Social nature of the job
- Training needed for the job
 - Condition of employment
- Promotion prospect

Job Specification: This is a statement which states the types of person required
for the job. It identifies the qualities and quantifications of the person most likely
to fill the job, and equally importantly to fit into the organization. It includes;

- Education required
- Skills and experience
- Intelligence
- Hobbies and interest
- Personalities
- Motivation
4.2.1 The Recruitment process: The recruitment process starts immediately a
vacancy is identified. Then a job analysis is prepared and at the same time
employment sources are identified. The job advertisement is made, followed
by application and short listing and finally the interview and allocation.
4.2.2.1 Sources of Recruitment
There are two main sources of recruitment in organization; the internal and
external sources. Where it decided to recruit externally, the sources normally
considered will include;
i. Government agencies
ii. Staff agencies for clerical (religious) workers
iii. Staff selection bureau for top jobs
iv. Professional body
v. Schools
vi. Advertisement in local national and trade press.
b. INTERVIEWING AND SELECTION
Interview is a stage in the employment process and one of the most difficult
which enable the human resource department to know who is capable of
taking up a particular post. It is often conducted by a panel or a group of
people.
 The aims of an interview can be to assess the applicant’s;
Potentials, Interest, sentiment and accuracy beyond those which might be
claimed or assured by the applicant, referees and testimonial.
The National Institute of Industrial Psychology propounded s-point plan for an
interview which include;
1. Physical makeup tip
2. General intelligence
3. Special aptitude (skill)
4. Interest
5. Disposition
6. Circumstances
Exercise
Why does personal interview remain the most frequently used techniques
in personnel selection?

Steps in the interview process

Selection is the mutual process whereby the organization decides whether

or not to make a job offer and the candidates decides on the acceptability
of the offer. The process follows a seven steps procedure as follows;
i. Completed job application
ii. Initial screen interview
iii. Background investigation
iv. Indebt selection interview mostly done by the manager to the
applicant will report
v. Physical examination
vi. Job offer
c. RENUMERATION

Renumeration is the pay or financial compensation provided in exchange of an employee’s

service performed. It is one of the components of reward management

The renumeration of employees other than those engaged directly in production is usually agreed
on a time basis. In Cameroon, the labour code which is law number 92/007 of 1992 in part 4
which deals with wages, section 62-65 authorizes the minister of labour to set the minimum
wage rate at 32514 FCFA as at 1997. In recent times, the minimum wage rate in Cameroon is
set at 36,270 FCFA per month for those who are 23 and above and applicable to all employees in
all sectors.

Methods of renumeration

The methods of renumeration may be divided into the following broad categories

i. Time rates
ii. Piece rates
iii. Premium bonus rate (differential rate system)
iv. Collective bonus scheme
v. Mixed wages
i. Time Rates or wages:

Time wages are paid either to the nature of the work being done makes it difficult to identify a
specific item for which piece rate could be used.

N:B The minimum number of hours to be worked are usually laid down in the contract of
employment. A fixed weekly or monthly wage or slary is usually paid for fixed number of hours
of work.

Formula:

Time Rate= Total time worked (in hours) × Rate per hour

ii. Piece Work Rate

Piece work rate renumeration form one of the two categories of payment by result (the other
being premium bonus scheme).

Formula:

Piece work rate = Total Quantity of goods produced (measured in units, hours or
minutes) × fixed rate per piece

iii. Premium bonus scheme (different rate system)

 It relates earnings to both the time worked and the output achieved. Here the worker’s
earnings are made up of;
A day rate amount (in hours) + The day’s bonus based on the quality of the output.
Other types of Premium bonus scheme include;
a. Halsey scheme: Here, the earning consists of the sum of the day plus a bonus
calculated on the basis of time saved.
Formular: Bonus = ½ time saved × rate per day

N:B the time saved= time allowed - time taken

Exercise

A worker is paid 1200F per hour. In an eight-hour day, he completes the tasks for which the
standard time is 12hours. His pay will be?

solution

normal time bases, 8hrs ×1200F= 9600F

Time saved= 12hrs -8hrs = 4hrs

Bonus: (1/2×4) ×1200 = 2400F

Payment: 9600+2400 = 12000F

Halsey – Weir scheme: This is the modification of the basic Halsey scheme, but here the
relevant fraction to the time saved is 1/3 and no longer1/2

From the example above;

Normal time base above = 9600

Bonus ( 1/3×4×1200) = 1600

Pay: 11200

iv. Mixed wages: It is made up of a fixed element (salary) plus a variable element based
on the amount of output sold or produced. It is commonly used to renumerate
Salesmen.
 Example
A Salesman receives a salary of 50000F per month, and a commission of 150F per
unit of output sold. He sold100units a period of one month. How much will be his
total wages for the period?
Solution
Basic salary = 50000F
Total Comm. = units sold ×commission per unit
150×100 = 15000
Total amount earned = 50000+15000 = 65000F

d. TRAINING AND DEVELOPMENT

Training programs are directed to towards maintaining and improving present job. While
development programs seek to develop skills for future jobs.

d.1 TRAINING

Training is defined as the process of providing required skills to the employees for doing the job
effectively, skillfully and qualitatively.

Kinds of Training

The following kind of training can be provided an organization to its employees.

1. Induction training orientation: This provides new employees with facts about the
company and the job. It enables new employees to know more about the organization to
so as to fit in smoothly. Some of the information include; the organizational structure,
rules and regulations, policies, procedures etc.
2. Job Training: The training here is focused on what the employee was recruited to do.
3. Apprenticeship Training: This means getting an individual to work under a superior
officer who would training him or her as they work.

d.2. MANAGEMENT DEVELOPMENT

This is a training designed to improve the overall effectiveness of mangers in their present
positions and to prepare them for greater responsibilities when they are promoted. There are
number of ON- THE -JOB and OFF THE JOB management development approaches.

A. ON – THE – JON TRAINING

The four major formal on the job development methods includes;
i. Coaching: It is the training of a subordinate by his /her immediate superior.
ii. Job Rotation: This involves shifting mangers from position to position so that
they broaden their experience and familiarize themselves with various aspects of
the firm’s operations.
iii. Training Position: Here, trainees are given staff posts immediately under a
manger often with the title “assistant to” such help the trainees to work with and
model themselves under outstanding managers.
iv. Plan work activities: This involves giving trainees important work assignment to
develop the experiences and abilities. E.g Trainees might be asked to head a task
force or participate in an important committee meeting.
B. OFF- THE – JOB TRAINING
The most common off- the – job development method include in– house classroom
instructions and management development program sponsored by universities and other
organisations (internship).
e. PERFORMANCE EVALUATION

It is periodic and systematic process whereby the job performance of an employees is

documented and evaluated. I.e the process of systematically assessing an employee’s
performance.

This is one of the most important tasks of a manager and most mangers freely admit they
have difficulty in handling adequately. It is always not easy to judge a subordinate’s
performance accurately and even more difficult to convey the judgement to the
subordinate in a constructive and painless manner.
Types of performance evaluation
Informal appraisal: The term informal performance appraisal is taken to mean the
continuous process of feeding back to subordinates’ information about how well they are
doing their work for the organization. It is conducted on a day-to-day basis.
Formal appraisal: This occurs semi-annually or annually on a formalized basis.
f. JOB EVALUATION OR GRADING
This is the process of analyzing and assessing the content of jobs, in order to place
them in an acceptable rank/order which can be used for a renumeration system.
It should be noted that evaluation does not refer to the person performing the task but
to the job content.
Job analysis is a statement of fact relevant to the job which makes recruitment more
efficient and relates to job evaluation for the purpose of fixing renumeration and
determining promotion.
Methods of conducting job evaluation
There are four main methods of conducting job evaluation exercise
a. Ranking system: This method position jobs in relation to each other and
according to the importance of the job.
b. Classification system: Here, grades are defined for the factors which are
common to various types of jobs. Comparisons are then made and the jobs placed
in appropriate grades according to the various differences
c. Points system: This involves analysis and quantification. This job analysis will
indicate the requirements specific to the job.