Lecture notes on Human Resource Management 2018

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Published Date:18-07-2017
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Fundamentals of human resource management African Studies Centre / University of Groningen / Mzumbe University African Public Administration and Management series, vol. 2 Fundamentals of human resource management Emerging experiences from Africa Josephat Stephen Itika Published by: African Studies Centre P.O. Box 9555 2300 RB Leiden ascascleiden.nl www.ascleiden.nl Cover design: Heike Slingerland Photos: Evans Mathias Kautipe Printed by Ipskamp Drukkers, Enschede ISSN 2211-8284 ISBN 978-90-5448-108-9 © University of Groningen / Mzumbe University, 2011 To all those who believe that African countries, organisations and people have a contribution to make in the meaningful adaptation and application of Eurocentric concepts, theories, assumptions, principles, techniques and practices and in anticipation that such contributions will liberate African managers from mismanagement and inefficiencies. Preface This book is not just one of the many introductions to Human Resource Management that are published, year after year, for use in HRM classes. Authors of those introduc- tions face many challenges, such as the need to produce something that is both theoreti- cally sound and practically valuable, or to find a way to integrate discussions on a vari- ety of topics into one comprehensible teaching tool. The author of this book took up those challenges by, on the one hand, closely following the conventions that HRM scholars all over the world adhere to with regards to the demarcation of subfields within the HRM discipline, and on the other hand, including a multitude of Tanzanian and oth- er African cases that put each of these subfields in a vivid context. The result is a book that serves to initiate African students in the world-wide HRM community, while simultaneously enabling them to create their own HRM policies in accordance with circumstances in their countries. As such, it is definitely a unique book. It brings the global and regional perspective together, to the benefit of both. The author and his colleagues of the School of Public Administration and Management of Mzumbe University deserve respect for this accomplishment. Their reward will be in the educa- tional outcomes that the book will certainly bring about in their own classes and in hopefully many other ones. Dr Ben Emans professor Sustainable HRM Hanze University Groningen vii Contents Preface vii  Appendices x  List of tables x List of figures xi  Acknowledgements xiii  Foreword xv 1. Introduction to human resource management 1    2. Strategic human resource management 27    3. Human resource policies 43    4. Employee resourcing 63    5. Recruitment and selection 75    6. Performance management 93    7. Reward systems management 115    8. Human resource development 127    9. Employee relations 143    10. Talent and competency based human resource management 163    11. International human resource management 179    12. Recruitment and performance appraisal in the public sector 189    13. Recruitment and retention of human resource for health 201    14. Human resource management in Tanzania Tobacco Processors Ltd 215  Index 233  ix Appendices 3.1  Housing Policy and Procedure for Tanzania Tobacco Processors Ltd 59  5.1  Job description from Tanzania Tobacco Processing Ltd. 90  6.1  Tanzania Public Service Open Performance Appraisal Form 107  6.2  Employee termination on poor performance 113  9.1  Collective bargaining 158  9.2  Strikes and lockouts in collective bargaining 162  14.1  Grievance handling form 230 List of tables 1.1  Human resource theories 5 1.2  Similarities personnel management (PM) and human resource management (HRM) 20  1.3  Differences personnel management (PM) and human resource management (HRM) 20  3.2  Equal opportunities in human resource activities 52  4.1  Human resource planning barometer 68  4.2  Human resource planning matrix 69  5.1  A sample of job description form 76  5.2  A sample of person specification form 77  5.3  The relationship between competencies and job quality 77  6.1   Employees perception of the job 103  7.1   Job factor analysis 119  7.2  Design of salary structure 120  7.3  Determinants of employees’ motivation 121  7.4  Money as a source of motivation 123  7.5  Reasons for seeking employment 124  7.6  Salaries and wages as motivators towards work performance 124  8.1  Types of training and development 132  8.2  Stages in career development 136  8.3   The differences between the old and new career development models 137  9.1   Reasons for joining trade unions 152  10.1   Differences and similarities between CBHRM and HRM 172  10.2  Professional competencies in human resource management 173  11.1  The nature of diversity in national culture 182  11.2  The relevance of expatriates, host and home country staff 184  12.1  Job seekers expectations 192  12.2  Employee dissatisfaction with jobs and organisations 193  13.1  General staffing levels in district dispensaries 207  13.2 Years of service of human resource for health at Korogwe District Council 210 x List of figures 1.1  Stages in the evolution and development of human resource management 7  2.1  Strategic human resource management model 33  3.1  Formulation and implementation of human resource policy 45  4.1   Human resource planning model 65  5.1  Components of effective assessment in assessment centres 84  8.1  Systematic training 131  9.1  A model of psychological contract 146  9.2   Six frameworks of organisation of justice 148  10.1  Competence framework 166  10.2  Competence based performance management 171  11.1  Cultural dimensions in IHRM 183  12.1  Performance appraisal and review system in Tanzania 194  12.2  Revised performance review and appraisal model 197  13.1  Principal-agent-resource-dependency framework 205  13.2  Analytical framework 206  xi Acknowledgements This book is a result of contributions from many people and I cannot mention all of them here because that will not be practical and the list is long. From the bottom of my heart, I am highly indebted to all of those whose support, encouragement and whose ideas have made this book a reality. However, much as I do appreciate and acknowledge all, some of them have to be mentioned. I highly appreciate my colleagues in academia from the School of Public Administration and Management of Mzumbe University who shared with me the initial ideas of the book which gave the current scope. Throughout my teaching in human resource management and supervision of students’ dissertations, I have been sharing notes with my students and I have, in the process, learned a lot. Thank you very much. Managers and administrators from various organisations I visited and colleagues from the Association of African Public Administration and Management (AAPAM) and African Training and Research Centre in Administration for Develop- ment (CAFRAD) have made invaluable contributions to this book particularly on the case studies from various countries and for which I thank them all. The book contains a special chapter on talents and competency based human re- source management which is out of the inspiration and lessons from Certified Talent and Competency Professional Programme which was initiated and supported by the government of Tanzania under joint facilitation of ARTDO International and Institute of Training and Development (ITD) in 2006. In this regard, I am highly indebted to Dr. Rumesh Kumar and Dr. Mario del Castilo for their contributions particularly on the dif- ferences between traditional and competency based human resource management. Needless to say that the lessons I learned from the experiences of colleagues in that pro- gramme are invaluable and have prompted me to have a chapter in this book so that we can continue to share these noble ideas for better people management in the country and elsewhere. To all of you, thank you very much. My colleagues in the NPT project Professor Ko de Ridder and Dr. Albertjan Tolle- naar have been instrumental and inspiring through reading the manuscript and providing very useful comments that significantly shaped the book. Also, the book would not have been published without technical, professional and academic contribution form Dr. Ben Emans from Hanze University in Groningen. I want to take this opportunity to express my heartfelt appreciation for many useful comments which shaped the book in terms of contents and scope. Special thanks should equally go to Mr. Christian Garrad from the University of Groningen for the meticulous job in editing the manuscript. The Royal Netherlands Government through the Netherlands Programme for the Institutional Strengthening of Post Secondary Education and Training Capacity (NPT) project under the management of the Netherlands Organisation for International Cooperation (Nuf- fic) provided funds for the research and publication of the book. Without this support, the book would have been a distant dream. I extend my sincere appreciation to Nuffic for accepting and supporting the idea of developing a book that captures African experi- ences. The NPT project staff members have always been boosting my morale whenever I was weakened by the boredom of continuous writing. These are Mr. Wiebe Zijlstra, Ms. xiii Anita Veltmaat and Gonny Lakerveld from the University of Groningen, Dr. Montanus Milanzi, Mr. Rashid Mfaume, Mrs. Saida Fundi and Anita Kinolo from Mzumbe Uni- versity. Thank you very much for the encouragement and logistical support. Others are my colleagues from Mzumbe University with whom we have been working together to write books to give Northern concepts, theories and principles some African flavour. These are Dr. Richard Gellejah and Dr. Martin Mpamila Madale; thank you very much for sharing the experience. Lastly, but not least are my dear wife Voyness, and our dear children Divine, Gladys and Neema and my young sister Lucy who had to bear with me and share part of sleep- less nights during the writing of the book. These individuals have constantly been en- couraging and supporting me to the last moment. Thank you very much for the under- standing and perseverance. xiv Foreword ‘Leaders must be guided by rules which lead to success.’ (Machiavelli: The Prince) For over half a century now, most African people south of the Sahara are still living under political, social and economic hardships, which cannot be compared with the rest of the world. For many, the expectations of independence have remained a dream. This state of affairs has many explanations but it is fundamentally based on the nature of African countries and organisations on one hand, and on the other hand there is over reliance on Eurocentric philosophies, theories, and assumptions on how administrators and managers should manage African countries, organisations, and people in such a way that will lead to prosperity. As a result, the same Eurocentric mindsets are used to de- velop solutions for African leaders and managers through knowledge codification and dissemination in the form of textbooks and the curricula in education systems. Evidence from economies in South East Asian countries suggests that the success behind these countries is largely explained by high investment in human capital and, to some extent, avoiding wholesale reliance on the importing of northern concepts, values and ways of managing people; that is, the development of human resources capable of demonstrating management in setting and pursuing national, sector wide, and corporate vision, strategies, and commitment to a common cause within the context of their own countries and organisations. Similarly, African managers and leaders effectively cannot manage by merely importing Eurocentric knowledge without critical reflection, sorting and adaptation to suit the context they work in and with cautious understanding of the implications of globalisation in their day-to-day management practices. They have to understand and carefully interpret northern concepts and embedded assumptions, inter- nalise and develop the best strategies and techniques for using them to address man- agement problems in their organisations and countries, which are, by and large, Afro- centric. Therefore, like Machiavelli, human resource managers, like leaders, must be guided by rules which lead to the success of their countries and organisations. The main chal- lenge facing human resource managers now is to know which rules are necessary and when applied would lead to effective human resource management results in different types of public and private sector organisations and contexts. This is a difficult question to answer. However, we can start by learning one small step at a time from the emerging experiences of our own practices of human resource management in Africa and else- where. This book on ‘Fundamentals of human resource management: Emerging Experiences from African Countries’ has just made a small step in the journey of establishing a link between Eurocentric concepts, philosophies, values, theories, principles and techniques in human resource management and understanding of what is happening in African or- ganisations. This will form part of the groundwork of unpacking what works and what xv does not work well in African organisational contexts and shed more light on emerging synergistic lessons for the future. The book has fourteen chapters each addressing important issues in human resource management in terms of the Eurocentric approach and reflecting on what is happening in African governments and organisations at the end of each chapter. Chapter 1 starts to lay the foundations of human resource management, on which the rest of the book is anchored. It covers theoretical issues and historical trends in the evo- lution and development of human resource management as a discipline and a profes- sion. Chapter 2 sets the basis for using a strategic approach to manage human resources and the link between corporate strategy and strategic human resource management. It establishes the changing role of human resource managers from that of managing rou- tine functions into a strategic business partner where human resource management func- tions are decentralised to lower departments and sections. Chapter 3 is concerned with human resource policies as the step following strategic choices in people management. Policies are useful in guiding managers to ensure that organisations have the right number and quality of staff at any particular point in time. Chapter 4 covers the fundamentals of employee resourcing and addresses key issues in human resource planning at micro, meso and macro level. It also considers challenges facing management on decision making in financing human resource plans. Chapter 5 investigates recruitment and selection. Our experience is that all managers and administrators are involved in one way or another in human resource recruitment and selection and require knowledge, skills and techniques for getting people into or- ganisations. Special emphasis is put on the use of appropriate selection techniques and tools, particularly assessment centres. The most successful organisations have the best strategies to utilise staff and measure their performance. This is covered in chapter 6, which is devoted to performance man- agement systems, processes, techniques and measurements. There is always a link between reward and performance. The employee’s perform- ance should be recognised through the provision of appropriate rewards. Chapter 7 de- scribes the development of appropriate reward systems for effectively utilising human resources. Chapter 8 is about human resource development partly as recognition that improved performance is achieved through continuous training and development but also that training and development are essential rewards. When employees join organisations they have their own needs, expectations and interests as individuals and as a part of a team. Likewise, employers do not engage staff without needs, expectations and interests to be met and which may not necessarily be compatible with those of the employees. Therefore, the relationship between these two parties has to be effectively managed in order to have a harmonious work place. Chapter 9 is devoted to the relationship employees have with their management. With globalisation and the emergence of many multinational corporations, managing human resource, which is diverse in nature within multinationals, is of increasing con- cern for managers. Therefore, the legal framework which governs the relationships be- tween employees, employers and trade union in Tanzania is given emphasis. One of the strongly emerging developments in human resource management disci- pline is a shift from traditional human resource management to competency based hu- xvi man resource management whereby the identification, utilisation, rewarding, measure- ment and developing of talents and competencies are becoming critical in determining organisational competitiveness and sustainability. Therefore, chapter 10 underscores the importance of talent and competency based human resource management in competitive organisations. The ongoing reforms in both public and private sector organisations and the efforts to promote foreign direct investment in Africa have started to bear fruits that pose many challenges on managing multicultural workforce. Chapter 11 looks at the international perspectives of human resource management as recognition of the emerging challenges and emphasis on the need to re-examine the best ways to manage people in a globalise world. Chapter 12 is more practical and based Tanzanian experiences. It focuses on the link between recruitment and open performance appraisal in Tanzanian public service by identifying the mismatch between recruitment and selection and open performance ap- praisal and recommends an alternative model. Chapter 13 links theory and practice in human resource management for health in general and more specifically in local authorities in Tanzania. The main focus is on re- cruitment and retention strategies and the challenges faced in health service provision. Chapter 14 is on the human resource management in a private foreign company for the purposes of drawing lessons from other private sector organisations that are now the engine of economic growth in Tanzania. The chapter covers policies and procedures governing day-to-day people management. It will be noted with emphasis that in each chapter there is a reflection on what is going on in some Tanzanian and other African countries and organisations. It is impor- tant that readers make use of these lessons to digest the usefulness of northern concepts, theories, assumptions and principles and how they may be better utilised within the con- text of their own countries. For those interested in academia, it will be a starting point to begin building models for human resource management particularly for Sub Saharan Africa. ‘For every effect there is a cause. The prime mover and the work of men is to change it.’ (Aristotle, 384-322 BC) Prof. Josephat Stephen Itika (PhD) School of Public Administration and Management, Mzumbe University, Tanzania xvii Professor Josephat Itika, Dean of the School of Public Administration and Management, Mzumbe University xviii 1 Introduction to human resource management Introduction For more than a century now, human resource management, as a discipline and practice in the management of people in an organisation, has evolved and developed into differ- ent areas. These disciplines and practices have gone through a process of trial and error, theory building and testing of various concepts by practicing managers and academics (Farnham & Pimlott 1979; Storey 1989; Armstrong 1995). The underlying forces be- hind the evolution and development of human resource management have been (and still are) mainly environmental, and the quest for knowledge of better ways of acquiring and utilising labour. The changing organisational environment in the marketplace pushed managers to improve efficiency in the production and service delivery processes by increasing their ability to use the best practices of people management at the time. That is, employee management techniques or methods that would improve production, reduce service delivery costs, and at the same time ensure sustained availability of com- petent staff in the organisation. This introductory chapter is devoted to providing learn- ers with a cursory account of the evolution and development of human resource man- agement and the way it works and influences people management in contemporary or- ganisations. Therefore, at the end of the chapter, learners should be able to: • Describe the process of the evolution of human resource management. • Appreciate the role of different theories in shaping human resource management practice. • Recognise similarities and differences between personnel and human resource management. • Examine the role of modern human resource manager in human resource management functions. 2 Guiding theories in human resource management Human resource management principles and techniques for people management in competitive organisations are drawn from theories found in different disciplines. Indeed, it is impractical to present all the disciplines and relevant theoretical aspects that have shaped the understanding of human resource management today. Therefore, it is be- lieved that it is only important to give the reader a cursory view of some relevant theo- ries underpinning human resource management and whoever may be interested in knowing more about the genesis and developments of a specific theory may do so by taking extra homework. Organisation life cycle theory Cameron & Whetton (1981) advanced organisation life cycle theory which characterises organisational development from formation, growth, maturity, decline and death. Ac- cording to the theory, the driving force in all these stages is the nature of workforce. At the maturity stage the organisation cannot continue to grow or survive if there is no or- ganisational structure that supports human resource creativity, innovation, teamwork and high performance, which will withstand pressure from competitors. Role behaviour theory Role behaviour theory aims to explain and predict the behaviour of individuals and teams in organisations, which, in turn, inform managers for the purposes of decision making, and what steps they take on people management as well as the expected conse- quences. Some of the key ideas focus on the need to improve the working environment including the resources in order to stimulate new behaviour in employees in order for them to cope with new demands (Prachaska et al. 1982), it includes the use of rewards to induce and promote positive work behaviour, and punishments to control negative behaviour (Rogers 1983). Resource dependency theory One of the challenges faced by managers during the economic recessions in the 1970s is how organisations can best acquire scarce resources and effectively utilise them in order to remain competitive in the market. The ability to utilise one’s own resources including (financial, technological and labour), and acquire more from the external environment was one of the areas of concern in many organisations. The more organisations were able to harness resources, the more competitive they became. Therefore, resources were seen as the essence of organisational power (Emerson 1962). However, overdependence on external resources appeared to be risky due to the uncertainties that cannot be con- trolled by the organisation (Pfeffer & Solansick 1978). Concerning useful labour, the emphasis shifted to seeing employees as scarce resources that should be acquired effec- tively, utilised, developed and retained. Institutional theory The word ‘institution’ means different things to different people depending on academic and professional orientation (Peters 2000). However, it is a discipline that combines politics, law, psychology, public administration, and economics amongst other things, in order to explain why certain decisions are made or actions taken and their impact on the organisation. Commons (1931: 648) defines ‘institutions’ as ‘collective action in con- trol, liberation and expansion of individual action’. Collective action covers areas such

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