MBA: 820

HUMAN RESOURCE MANAGEMENT

Group 3

Sheila Nasieku
Eliud Nzola
Jane Mungai
PeterMwaniki
Caroline Wahome

THE ASSIGNMENT
Supposing you have been appointed the HRM manager of a newly established
large organization with more than 1000 employees of different categories;

a) Outline the policies you would put in place and give your rationale for
each.

b) Illustrate with a diagram what the structure of the new HRM department
would look like.

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Introduction
Human resource policies are guidelines on how organizations plan to manage people. The
policies define the values, philosophies of an organization and this gives principles that
managers are to us in management of staff. Human resource policies ensure that when
dealing with matters concerning staff, an approach in line with corporate values is adopted
throughout an organization. The policies provide a frame work through which consistent
decisions are made and thus promote equity.

Some of the areas of policy formulation include; employment, leave, compensation(reward),

code of ethics & conduct, staff benefits, Corporate social Responsibility (CSR), Email and
internet , Trade unions, Traveling , Statutory contributions, Education, training &
development, Staff Transfer, Health, Safety & Security, Team Building, Retirements
Benefits, Discipline policy & Procedure, Performance management and Misuse of
Organization’s property.

Proposed policies for our organization

1) Employment policy

a) Recruitment

The recruitment of staff of the desired quality and in sufficient numbers is a primary
requisite for the maintenance of a high standard of service to our clients, in turn; the
continued progress of the organization relies. To ensure that the success of the
organization is not hampered by lack of suitable personnel, from time to time the
Human Resource Manager will recruit suitable personnel.

The policy outlines; recruitment procedures, advertising (internally & externally) of

vacant positions, Head hunting procedure, short listing, terms of employment-
contract, Permanent terms or casual, Qualifications and requirements e.g Certificate
of good Conduct, References, academic certificates etc.

b) Interview
Based on the large numbers to be interviewed, recommended on an interview method
of selection, whether to be individual, panel or selection boards. The policy outlines

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 the interview procedures e.g who is to conduct the interview (internally or
outsourcing interviewing Co.), how the interviews are conducted- aptitude test, oral
interview, email, telephone etc.
c) Selection & Posting (placement)
This policy outlines selection criteria for a suitable candidate and the deployment
procedure.

d) Induction
This is the process of orientation whereby, the candidate is introduces to the
organizational day to day activities through training. It can also be described the
process of receiving and welcoming employees when they first join a company,
giving them the basic information they need to settle down quickly and happily start
to work. Employee hand book should be in place that clearly conveys in simple terms
to new staff the entire organization structure and the hierarchy of command how it
will look like.

e) Probation
This is the immediate period after deployment that enables the management to assess
the capabilities of the employee. It enables the management to understand the
employee better before confirmation. It also enables the new employee adapt to the
organization’s working environment. This is usually 6 months; which is the case in
many organizations in Kenya.
f) Confirmation
This is a certificate awarded to the employee upon successful completion of probation
period. It applies if one is employed on permanent basis.

2) Performance management Policy

a) Appraisals
i) Balanced Scorecard

ii) Performance contract

b) Work plans

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3) Compensation Policy
It is the goal of any company to maintain levels of pay and benefits that are competitive
with the average compensation of employers offering similar employment and competing
in the same labour market. This is in the form of:-
i) Salary (remuneration)
ii) Overtime
iii) Commission
iv) Bonus
v) Promotion
vi) Certificate of recognition
vii) Reward in kind
4) Code of ethics & Conduct
a) Sexual harassment
This policy is committed to providing and promoting an atmosphere in which
employees can realize their maximum potential in the workplace. Toward this end, all
members of staff should understand that Sexual harassment is not tolerated at work
place.
Sexual harassment may be described as unwelcome sexual advances, requests for
sexual favours and other verbal and physical conduct and expressive behaviour of a
sexual nature, where raising objections or refusing may have negative consequences.
As applied in the workplace any unwanted sexual behaviour including but not limited
to suggestive looks, sexual jokes, physical touch, or pressure for sexual favours may
constitute sexual harassment.
Note; men also face sexual harassment, but overwhelmingly majority of sexual
harassment complaints are from women about men.
In determining whether alleged sexually harassing conduct warrants corrective action,
all relevant circumstances, including the context in which the conduct occurred will
be considered. Any serious relationship between two single consenting adults
although not constituting sexual harassment may not encouraged in the workplace as
it may lead to lack of concentration that inevitably impacts performance as is the case
in many local companies. This policy should highlight confidentiality, Assurance
against retaliation, procedure for handling complaints of this nature and disciplinary
measures.

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b) HIV /Aids Policy
HIV/AIDS continues to pose some of the greatest challenges globally, nationally and
at the workplace. Any organization will acknowledge that its workforce has not been
spared the ravages and devastating effects of the AIDS scourge.

Organizations should be committed to providing a healthy and safe working

environment for all its employees. The HIV/AIDS policy and program is intended to
ensure that everyone learns how to prevent the spread of HIV and be confident about
heath and safety in the workplace. This policy may capture the following; Training on
HIV/Aids, Counseling service, medical scheme, confidentiality & disclosure and non
discrimination of affected members.

c) Conflict of interest

A conflict of interest involves a conflict between duty as a staff of an organization,

and personal or private interests. Conflicts of interest can also be perceived or
potential.

The perception that a Staff’s private interests could improperly influence their
execution of duties can be as important to identify as an actual conflict of interest.
This is because public confidence in the integrity of the organization is vital.

A potential conflict of interest arises where a staff has private interests that could
conflict with their official duties in the future.

Another type of conflict of interest can exist where a member of has competing
interests through more than one official role or duty.

Conflicts of interest can occur quite frequently and are not necessarily unethical, or
wrong. However, it is how they are identified and managed that is important. If
conflict of interest situations are not properly identified and managed, they can
endanger the integrity of organizations and can result in corruption in the public
service.

The policy should therefore outline how conflicts of interest may occur and how they
can be managed at a workplace.

d) Dress code
The Corporate Dress Code is designed to guide employees of the organization on
standards of dress and appearance. All employees’ appearance must be professional at
all times both within the workplace and when representing the organization.

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 The Policy is not exhaustive in defining acceptable and unacceptable standards of
dress and appearance and staff should use common sense in adhering to the principles
underpinning the policy. This policy is subject to review as need arises.

This policy describes the specific dress code for both male and female, hair style,
jewellery and footwear.
e) Working Hours
This policy states the time at which the employees report to work in the morning and
leave in the evening. It also captures when an employee is working overtime.

5) Discipline Policy and procedure

Discipline is generally administered when an employee violates a company policy or falls
short of work expectations, and managers must act to remedy the situation. Discipline
usually progresses through a series of steps- warning, reprimand, probation, suspension,
disciplinary transfer, demotion, and discharge. This policy will therefore spell out the
disciplinary procedure and punishment depending on the case at hand.
6) Staff benefits
Staff or employee benefits and benefits in kind (also called fringe benefits, perquisites,
perks) are various non-wage compensations provided to employees in addition to their
normal wages or salaries. Where an employee exchanges (cash) wages for some other
form of benefit, this is generally referred to as a 'salary sacrifice' arrangement. In most
countries, most kinds of employee benefits are taxable to at least some degree.
Some of these benefits are: housing (employer-provided or employer-paid), group
insurance (health, dental, life etc.), disability income protection, retirement benefits,

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daycare, sick leave, vacation (paid and non-paid), social security, company discounts,
mortgages and other specialized benefits.

The purpose of the benefits is to increase the economic security of employees. The term
perks is often used colloquially to refer to those benefits of a more discretionary nature.
Often, perks are given to employees who are doing notably well and/or have seniority.
Common perks are take-home vehicles, hotel stays, free refreshments, leisure activities on
work time (golf, etc.), stationery, allowances for lunch, and—when multiple choices exist
—first choice of such things as job assignments and vacation scheduling. They may also
be given first chance at job promotions when vacancies exist.
a) Allowances
i) House allowance vi) Mileage Allowance
ii) Commuter allowance vii) Utility allowances
iii) Responsibility viii) Professional
Allowance Bodies/Clubs
iv) Hardship Allowance allowance
v) House Help ix) Leave allowance
allowance
b) Loans
i) Car loan vi) Education
ii) Mortgage vii) Salary advances
iii) Furniture viii) Laptop loans
iv) Land Purchase ix) Shares purchase
v) Compensation loans
c) Parking staff Cars
d) Staff Canteen & Clinic
e) Daycare
f) Medical Covers and insurance

7) Retirement Benefits policy

8) On-Job-Rotation policy
There is need to consistently expose our staff to various jobs so that
they become multi-skilled. This in essence ensures that the

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 organization always has sufficient skills at all times and gives
managers flexibility in using these resources. This may also be
carried out through job shadowing.
Job Rotation involves moving to a new job on full time basis, while
job shadowing involves attaching staff to another staff who has the
skills you would like to impart. The learner thus acquires the skills by
observation as well as assisting on the role during specified times
only. This is a flexible way of acquiring skills and has least
disruption on work flow.
9) Transfer policy
Transfers between departments may be permitted, when in the best
interests of the organization and the employee. The head of the
department from which the employee is transferring should verify
that the employee is a satisfactory employee and eligible for transfer.
Our organization needs this policy to guide staff transfers and
entitlements which include;
i) Disturbance allowance
ii) Traveling (movement) costs (Reimbursements)

10) Statutory Contributions policy

This is the deductions on staff income which are backed-up by the
law. They include NSSF, NHIF, Training levy (Directorate of
Industrial training).
11) Education, Training & Development
The major purpose of educating training and training are improving
employee performance, updating employee skills, avoiding
managerial obsolescence, preparing for promotion and managerial
succession, and satisfying personal growth needs. Training needs are
determined based on the organization's and the employee's needs.
Organizations provide training to employees in the areas of company
policies and procedures, specific skills, human relations, and
managerial skills. Some organizations also provide apprentice
training. There are two types of training methods - on-the-job and
off-the-job.

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 The policy should capture the scope of training and Development
activities, as in most other activities in an organization, depends on
the policy and strategies of the organization
12) Team Building policy
Organizations are quickly adopting team building sessions for their
staff to enhance team cohesion and spirit. This policy gives the
guidelines on how and when the team building sessions should be
carried out. For instance, Teambuilding events are no different from
workplace events in that managers are still responsible for the health
and safety of their staff. Health and Safety issues should always be
taken into account and risk assessment prepared where
necessary.
All events should have a clear structure and clearly defined
objectives. The event should be structured in such a way as to
develop team skills such as leadership and communication skills,
decision-making, and organization and planning. It should be clear
how they intend to develop motivation and morale.

13) Health, Safety &Security at work place

a) Fire/disaster assembly point

This policy is important to this organization and it spells the

following; adequate and suitable means of extinguishing fire must be
provided in every building and persons trained in the correct use of
such means shall be present during all working periods. Detailed
requirements are laid down in the Act as to the special precautions
necessary to ensure safety in the events of a fire.

Adequate means of escape in case of fire must be provided. Fire

exits must be marked by a notice printed in red letters of adequate
size. Effective steps must be taken to ensure that the workers are

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 familiar with the means of escape and the routine to be followed in
case of fire.

b) First Aid

In every workplace there must be provided a first-aid box or

cupboard of a prescribed standard, containing nothing except first-aid
requisites, and in charge of a responsible person who must be always
readily available during working hours. In every workroom a notice
must be affixed stating the name of the person in charge of the box or
cupboard provided in respect of that room.

c) Drinking Water supply

An adequate supply of wholesome drinking water must be provided.

The policy also includes; cleanliness of the workplace, ventilation,

adequate lighting, drainage of floors, sanitary accommodation,
removal of waste materials, protective clothing and appliances and
frequent maintenance of hoist or lifts.

14) Email and Internet Policy

In many organizations, access to the Internet was initially limited to a
few people in the IT or marketing groups. Today, with a PC on every
desk, many employees find themselves with access to the Internet and
email but with little understanding of either the potential problems or
the real benefits which this can bring.

The purpose of an acceptable use policy is to ensure that employees

understand the way in which these technologies should be used in the
workplace. This enables both employees and the organization to gain
the maximum value from email and the Internet, and alerts them to
the dangers that can arise to the organization if they are misused,
which may put the organization at technical, legal or commercial risk.

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 Employers are responsible for their employees' activities when using
email and the Internet. For example, if software for use in an
organization is obtained illegally, the employer is liable even if it was
obtained without their knowledge or permission. Similarly,
information on an organization’s website or in its email can give rise
to legal action against the company.
The content of such policies will depend on the needs of the
organization and the expectations and requirements of its employees,
so before producing an acceptable use policy, an organization must
have developed an agreed strategy for using email and the Internet.
But the policy must always state the consequences of breaching the
rules: since the issues covered range from the inconsiderate through
to illegal activities, the sanctions would similarly be expected to
range from a verbal warning through to instant dismissal.

The policy should be introduced and explained during the employee

induction programme. Where necessary, it should be reinforced
during specialist training sessions.

15) Leave policy

a) Annual leave
Annual leave will be taken at the convenience of both the
individual concerned and that of the employer. Annual leave
entitlement for different categories of staff, leave allowance,
accumulation of leave days and compensation of leave days not
utilized are captured in this policy.
Employees are required to make written applications for leave
through their head of department. All leave applications,

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 approvals, and related correspondence must be recorded in the
employees’ personal file.

b) Compassionate leave
An organization may give consideration to granting "special
leave" on compassionate grounds on the production of proof of
the necessity for such leave. Such may apply in cases of death of
employee's spouse, children or parents. The policy may set out
the maximum number of days.
c) Maternity leave
This is a legal requirement by Kenyan labour laws (Employment
Act), a female employee shall be entitled to three months (3)
maternity leave with full pay, in addition to her annual leave
entitlement for that year. Some organizations extend this by
offering one and a half hour early exit/late entry at workplace for
nursing mothers for a period of one month.
d) Paternity leave
A staff member may be granted two (2) weeks paternity leave
whenever his spouse delivers a baby. The leave shall be taken
within thirty (30) days from the date of delivery by the spouse.
This is a legal requirement by Kenyan labour laws.
e) Sick leave
In the event that a member of staff is unable to come to work as a
result of illness or accident, they are expected to notify the
supervisor at the earliest opportunity. A medical certificate is
required for absence and should be submitted to the HR office.
Staff members may be entitled to a specific number days per
annum on full pay. If the staff member is still unfit to perform
their duties after this, the situation will be reviewed by the
management and a decision to continue or terminate their
employment decided.

f) Study leave

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 The organization may offer study leave to members of staff for
courses approved by the management subject to job relevance.
For self sponsored courses, leave will be granted but deducted
from annual leave days.

g) Leave of absence

A leave of absence without pay may be granted when the

requirements of the department permit, when such leave is for
prolonged illness or injury, or for any exceptional personal or
institutional reason. Leaves of absence without pay may be
granted only after all appropriate accumulated leave has been
used. Such leave must be requested by the employee and
recommended by the department chairperson or administrative
head, and approved in accordance with the current delegation of
authority.

Any regular employee may be granted a leave of absence without

pay when approved by the proper authority in order to preserve
the employee's employment rights and benefits. A leave of
absence may be granted only if the employee has a bona fide
intention to return to the organization following the leave.

h) Unpaid leave

In exceptional circumstances an employee may seek permission

to take leave without pay. This may be granted at the
organization’s discretion and only in the most deserving of cases.

16) Misuse of Organization’s Property policy

This policy highlights how the organization’s assets should be

handled and the consequences for mishandling.

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17) Traveling Policy

This policy highlights the entitlements and how staff should be

reimbursed expenses incurred while on is working out of the
usual work station. This capture items like Per diem, Daily
allowances etc

18) Trade Unions Policy

Trade unions are becoming popular and powerful in the modern
world and they cannot be ignored. Organizations need to recognize
union staff in the organization and entrench the bargaining agreement
in the staff manual.

19) Corporate Social Responsibility (CSR) Policy

Corporate social responsibility is a concept with a growing currency

around the globe. CSR is a concept that frequently overlaps with
similar approaches such as corporate sustainability, corporate
sustainable development, corporate responsibility, and corporate
citizenship. While CSR does not have a universal definition, many
see it as the private sector’s way of integrating the economic, social,
and environmental imperatives of their activities. As such, CSR
closely resembles the business pursuit of sustainable development
and the triple bottom line. In addition to integration into corporate
structures and processes, CSR also frequently involves creating
innovative and proactive solutions to societal and environmental
challenges, as well as collaborating with both internal and external
stakeholders to improve CSR performance.

Corporate social responsibility (CSR) promotes a vision of business

accountability to a wide range of stakeholders, besides shareholders
and investors. Key areas of concern are environmental protection and

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 the wellbeing of employees, the community and civil society in
general, both now and in the future.

The concept of CSR is underpinned by the idea that corporations can

no longer act as isolated economic entities operating in detachment
from broader society. Traditional views about competitiveness,
survival and profitability are being swept away.

Conclusion

All these policies when compiled in one booklet may be referred to as

staff manual.
Policies depend on the strategies of an organization.

These policies must be inline with the labour laws, human rights and the
constitution.

The policies should also have a clause on how they can be amended to
incorporate any changes.

References
Stoner, James A.F, Freeman R.E, Gilbert (Jr) D. R (2007), Management,
6th Edition, Prentice Hall.

Cole G.A (1996), Management; Theory and Practice, 5th edition,

Prentice Hall.

Armstrong M., A handbook of Human Resource Management Practice,

10th Edition

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Cole G.A (2002), Personnel & Human Resource Management, 5th
edition, prentice Hall.

Armstrong M, (2000), Strategic Human Resource Management; A guide

to Action, 2nd edition, Kogan Page Limited.

Co-operative Bank of Kenya, staff Manual, 2007

Commercial Bank of Kenya, Staff Manual

Kenya Revenue Authority, Staff Manual

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