Visual Discovery / HRM

Inside5 Happy Anniversary Ihrm! – Silver Jubilee!

6 Revisiting The Humble Past Of Ihrm

9 The Ihrm College

11 Future Generation Hr

12 Quest For Global Communication Standards

13 Skills Required Of Managers

16 Diary Of An Entrepreneur

17 Think Twice Before Firing An Employee

19 Listed Ihrm New Members From May 2012 To June 2012

20 Expatriate Compensation

21 Generation Y

22 Board Effectiveness In The 21St Century

24 Employee Financial Wellness – Whose Responsility?

25th

Happy Anniversary IHRM! Silver Jubilee!On behalf Of the HR fraternity I would like to lead the chorus in singing Happy Anniversary to mark the In-stitute’s 25th anniversary on 31st July, 2012. This occasion calls for taking stock of the key milestones that have been achieved in promoting the HR profession in Kenya. On the other hand, it provides an opportu-nity to reflect on lessons learnt as a basis for charting out the roadmap for next drive towards full institu-tionalization of HR professionalism.

In celebrating this day, HR profes-sionals should set aside some time to assess the level of contribution they have made so far towards en-hancing their organizations’ capacity to deliver products and services to customers. On a scale of one to ten, perhaps we can individually decide on our rating and use it as a basis for gauging our contribution towards the development and growth of the HR profession.

It is now recognized more than ever before that effective human re-source management is a catalyst to performance improvement at both organizational and national levels. Hence, HR professionals have em-braced the challenge to continuously embark on acquiring knowledge and sharpening their people manage-ment skills to champion the resolu-tion of sometimes daunting HR is-sues at the workplace.

Down the memory lane, I note with pride the establishment of IHRM Secretariat in 1994 under the leadership and management of the first Executive Director, William Gi-tobu. Located on the ground floor of the then BP Shell House (now Prime Minister’s Office), the Secretariat ushered in formal organization of membership activities and events particularly annual conferences, end of year dinner and dance and publi-

cation of newsletters. Before 1994 most of the Institute’s office bear-ers ran its affairs from the offices of their employers. Today our member-ship base has grown to 3,302 with most members concentrated in Nai-robi.

The other milestone in the growth of the Institute was the es-tablishment of IHRM College in 1997 located on 3rd floor of Westlands Ar-cade. IHRM College introduced the now nationally recognized Profes-sional Education Programme which has been instrumental in producing qualified HR professionals for both the public and private sectors of the economy.

The programme is structured to offer HR coursework and project work leading to external assessment and certification by the national ex-aminations body. At national level, this initiative filled the human re-source development gap in which people without requisite HR qualifi-cations found themselves managing others through learning on the job or relying on expatriate workforce. Currently IHRM College has over 750 students and over 45 lecturers.

In February 2003 IHRM College launched a small library facility which has since grown to become the well known IHRM William Gitobu Library. Located on the 5th floor of County House, the computerized Library holds a collection over 4,000 vol-umes including HR Journals. The HR specialized Library boasts of stock-ing the latest editions of HR books, journals and e-resources. Using Web 2.0 the Library provides users with

an opportunity for professional net-working through facebook pages.

Another milestone worth men-tioning was the institutionalization Continuing Professional Develop-ment Programme through which HR professionals catch up on current HR issues and future trends that impact on people management. For exam-ple, this programme assisted HR professionals to appreciate the im-plications of new labour legislation on various HR decisions. Although the Institute is yet to develop a credit scheme based on participa-tion in the programme for purposes of renewal of annual membership, the programme has immensely con-tributed to skills development par-ticularly among the upcoming HR professionals.

The HR Training and Consultancy Division of the Institute was started in 2006 to offer demand-driven in-house training and HR consultancy services to target clients. This divi-sion has extensively contributed to-wards skills development in various organizations enabling them to en-hance productivity. It has also pro-vided HR solutions in areas like job evaluation, remuneration reviews and HR-based surveys to wide base of client organizations.

IHRM is proud to recognize the elevation of senior HR professionals, Mrs. Sarah Serem and Mr. Kinuthia Wamwangi, to heading the Salaries and Remuneration Commission and Transition Authority respectively. This elevation places the HR pro-fession on the Kenya map as one that can provide required leader-

From the EditorHappy Silver Jubilee IHRM! Twenty Five years is a long time to stay on course, and to keep the vision alive. Of course it’s not easy, beginning from an idea and putting in the time and effort for the idea to take shape.But, hey, aren’t we glad that the founder members of IHRM stuck with it? Aren’t we glad that whenever the baton was passed on, the fire kept burning? And aren’t we happy that the vision is still alive?In this edition, as IHRM celebrates 25 years of existence, we bring you a brief history of how the institute has evolved since inception, and the direction its headed.We also bring you other management related stories in Finance, Entrepreneurship, Management, among others.Once again, do not forget to book your space in the next edition, as you continue supporting IHRM in its quest in shaping the HR industry in Kenya and beyond.Enjoy your read!

Lydia Limbe

National Bank Building, 13th Floor, Harambee Avenue P. O. Box 6132 -00300 Nairobi, Kenya Tel: +254 (0) 20 2213745/ +254 (0) 20 2240213 Fax: + 254 (0) 20 2244557 Email: [email protected] www.ihrm.or.ke

HR Management welcomes news, stories, announcements of events and ideas for articles. These should be accompanied by a telephone number and email address.

The views expressed by the contributors are not necessarily those of the Institute of Human Resource Management.

Editorial BoardSamson OseroMilka MurimiLydia Limbe

Design and LayoutJ. J. Yofi020 205 9415queries@streamlineyourbusiness.infowww.streamlineyourbusiness.info

HR Management is the official journal of the Institute of Human Resource Management, and is published bi-monthly.

Effective human resource management - a catalyst to

performance improvement

2012/3 New IHRM Governing CouncilFurther to the AGM held on

Thursday 31st May, 2012, we would like to provide you below the names of the Directors/Members of the 2012/3 new IHRM Governing Council.

New Directors1) Mr. Japheth Alande2) Mr. Evans Toto3) Mr. Bernard Ambasa

Re-Elected Directors4) Mr. Paul Kasimu5) Mr. Elijah Sitimah6) Ms. Irene Muinde7) Mr. Juma Kandie

Directors Still in Office8) Mr. Osborne Kilasi9) Mr. Tom Mongare10) Mr. Chris Otera

11) Mr. Molu Boya12) Mr. Ooko Odhiambo13) Mr. Samson Osero We look forward to working with

the new Governing Council to meet your professional development and growth expectations.

Office Bearers of 2012/13 IHRM Governing Council

Further to the election of IHRM Directors during the AGM held on Thursday 31st May, 2012 and the subsequent inaugural IHRM Govern-ing Council meeting held on Friday 15th June, 2012, we would like to in-form you below of the office bearers of 2012/13 IHRM Governing Council.

Office Bearers ♠ Chairman, IHRM Governing

Council – Mr. Paul Kasimu ♠ Vice Chairman, IHRM

Governing Council Mr. Elijah Sitimah

♠ Chairperson, Continuing Professional Development (CPD) Committee Ms. Irene Muinde

♠ Chairman, IHRM College Board – Mr. Tom Mongare

♠ Chairman, Membership and Publicity Committee Mr. Bernard Ambasa

♠ Chairman, Finance and HR Committee – Elijah Sitimah

We look forward to working with the above team to steer the Institute to greater heights in the promotion of HR professionalism.

HR Journal Anniversary Issue 4 HR Journal July - August

Celebrating 25 yrs5 Anniversary Issue

Having partly been on the trail of IHRM history, it is with nostalgia that I am chronologically providing you various landmarks that herald the growth of the Institute to date. I will indicate names of people in the HR fraternity who made contributions in various capacities towards the devel-opment of IHRM at different times.

31st July 1987The Institute was registered on 31st July, 1987 as a company limited by guarantee and not having any share capital. Its founder members were Adrian Muteshi, Evans Luseno, the late Fanual Wejuli, Hon. Marsden Madoka, Benson Wabule, Wallace Mantu, Patrick Nziu, Gerrard Tirii, William Gitobu, John Ndingu, Fran-cis Kigen, the late Apollo Magana, Gilbert Ombasa and the late Silas Nyaoke. Adrian Muteshi was elected in 1987 as the first Chairman of the Govern-ing Council of the Institute of Per-sonnel Management, Kenya, IPM(K), which is now IHRM. He spear-head-ed the foundation of the Institute and held its chairmanship until 1999.

August 1988The Institute was formally launched with its affairs run from the B.A.T. of-fices under the generosity extended by Aggrey Luseno, the then HR Di-rector. Its day to day activities were

managed on voluntary basis by Zack Mbori, who had then just retired as the HR Manager of Shell Kenya.

July 1989Shell Kenya through its HR Manag-ers, David Ndambo and Jan Mutai, offered the Institute an office on the ground floor of Shell BP House, now the Office of the Prime Minister. It is from this office that the first Training programmes were launched with the labour laws seminars gaining accept-ance and high attendance by HR pro-fessionals of the time.

January 1994William Gitobu was in January, 1994 appointed as the first Executive Di-rector of the Institute being seconded for one year from his employer, Uni-lever. This arrangement was done with courtesy of the then company Chairman, Joe Wanjui.Upon occupying the office at Shell BP House, the Institute received donations of office furniture and equipment from the following: Uni-lever, Shell, B.A.T, Mobil (through Francis Kigen), Barclays Bank of Kenya (through Ben Mtweta), Lonrho (through Ms Grace Muriagoro), ICL (through Margaret Mbaka), Tetrapak (through Alwy Hussein) and E.A. Breweries Ltd. (through Hon. Mars-den Madoka, Bill Okello and Jean Muhoho). Francis Kigen, who was

the Secretary also made a personal donation of book shelves.For several years the Governing Council held its monthly meetings at the EABL’s Executive Club where Di-rectors enjoyed great hospitality.

January 1995William Gitobu became the first full time employee of the Institute. He was assisted in office work by the late Mercy Kanyoro who worked as Sec-retary. He continued to run various training programmes. Of the semi-nars available, the three week Semi-nar on Human Resource Manage-ment usually attracted a high number of participants.

October 1996Samson Osero, the current Executive Director, was appointed as Training Co-coordinator in preparation for the launch of the IHRM College early in 1997. He became the third employee of the Institute.

January 1997IHRM College was registered to offer the Higher Diploma in Human Re-source Management Course which is the recognized professional qualifica-tion for those pursuing a career in hu-man resource management.

1999 – 2006Ken Kaunda became the second Chairman of IHRM Governing Coun-

cil in 1999 and held the position until 2006. The Directors who served the Institute during this period included George Hapisu (Vice Chairman), Johnstone Munyiri, Tom Muchel’le, Ben Mshila, Christopher Huka, Adri-an Muteshi, Dr. Lawrence Ndombi, Ben Wabule, Ooko Odhiambo, Su-san Kiama, Selina Makokha, Fred Wasike, Wairimu Mucangi, Elijah Sitimah and James Maitho.

2006 – 2010George Hapisu assumed the third chairmanship of the Institute in 2006, a position he held up to 2010. The following Directors served the Insti-tute during Mr. Hapisu’s term of of-fice: Paul Kasimu (Vice Chairman), Ben Wabule, Anthony Musyoka, Selina Makokha, Ooko Odhiambo, Dr. Lawrence Ndombi, Osborne Kilasi, Susan Kiama, Esther Nyong’o, Christina Were, Adrian Muteshi, Ba-shir Mburu, Joseph Mwangi, David Kiambi, Dominic Ooko, Fabian Mu-gira, Caroline Auma and Joseph Sik-ueya.

February 2008William Gitobu retired and Samson Osero was appointed the second Ex-ecutive Director of the Institute. At that time IHRM staff included Milkah Murimi, Margaret Kinyanjui, Mary Maina, Milka Owao, Tabitha Nyoka-bi, Mary Mwendwa, Stephen Oduor and Sammy Munyi.

2010 to datePaul Kasimu became the forth Chair-man of the IHRM Governing Council in 2010 having previously serve as Vice Chairman. Directors who have served or are serving in his term of office are: Elijah Sitimah (Vice Chair-man), Irene Muinde, Molu Boya, Ooko Odhiambo, Mercy Nduku, Tom Mongare, Fred Nyawade, Juma Kandie, Chris Otera, Osborne Kilasi, Evans Toto, Bernard Ambasa and Japheth Alande.The commitment and passion of the above persons in pursuing the IHRM mission has made significant impact in mobilizing and developing HR professionals in Kenya. The profile of the HR profession has risen to a level where most employ-ers now recognize the importance of the HR function in improving or-ganizational productivity. In salute of IHRM on its twenty five years of ex-istence, we are on record that the HR profession in Kenya is on the right track to full professionalism. However, there is still room for much more to be done…and we need your participation and support in order to claim IHRM’s foremost position in the league of other professional bod-ies.

By Executive Director Samson Osero

ship at national level. As we were about to go the press, we received the promotional news of Mr. Jona-than D’souza to become CEO of BAT, Uganda. Mr. D’Souza was Head of Human Resource, British American Tobacco, East and Central Africa. Indeed, perhaps, the time has come for HR professionals are to become CEO’s, a phenomenon that has been elusive for quite a long time.

From the foregoing it is evident that the Institute has made a sig-nificant impact in mobilizing and developing HR practitioners to a level where most employers now recognize the importance of the HR function in their organizations. To continue building on the Institute’s foundation which was laid 25 years ago, the Governing Council is still overseeing the implementation of the IHRM 3 year Strategic Plan for the period 2010-2012. Under the plan the Institute is focusing on re-alization of key strategic objectives below.

פ Provision of Demand-Driven Membership Services

פ Supporting Enactment of Legislation for HR Profession

פ Provision of HR Education and Training

פ Expansion of IHRM Branch Network

פ Mobilization of Financial Resources

פ Expansion of Network of Affiliates

For the Institute to achieve these strategic objectives it requires in-puts from its membership in terms of participation in Governing Council Committees; involvement in sched-uled events like AGM, breakfast meeting, luncheons, conferences and HR Professional Forums; con-tributing articles to the HR Journals, giving feedback on IHRM social net-works like the facebook page; and encouraging other HR professionals in your network to join the Institute’s membership.

With your support and passion in the HR profession, IHRM will become a model professional body in the re-gion.

from the Chairman

Revisiting the Humble Past of IHRM



The Institute of Human Resource Management (IHRM) College, a leading middle level academic institution in Kenya, established in 1997 as the training arm of IHRM. It is committed to developing the human resource required for the management of people at the workplace in both the public and private sectors of the economy.

Hence, our courses aim at preparing and equipping students

with required knowledge, skills and attitudes to be able to deliver HR services at various hierarchical levels of the organization. From the feedback we have been receiving from employing organizations and other stakeholders, our graduates have been found suitable in car-rying out a wide range of strategic and operational activities in the human resource (HR) function.

It is therefore not surprising that a good number of the graduates hold senior positions in the industry and the public service. Some of our graduates are offering HR train-ing and consultancy services as independent consultants to meet the rising demand for such services.

In terms of numbers, IHRM College started off with about 50 students in the first Diploma and Higher Diploma classes. At present

about 750+ students are studying at our college spread out among the different HR program courses we have, namely, Certificate, Di-ploma, Higher diploma, Bachelors and Masters. We are continuously providing quality HR professional education to produce competitive HR professionals that can work anywhere in the global market.

Other than HRM courses, IHRM

College is an accredited ICDL training and testing centre with fully equipped Computer Labs and a ICDL Testing facility. This program was started in Janu-ary 2012 and we have managed to test and examine the first batch of students totaling 40.

Located in the Nairobi Central Business District (Campuses on the 20th floor of National Bank Build-ing, 4th floor of County House, and 8th floor of Electricity House), our college offers courses right from the certificate level to a first degree in the area of Human Resource Man-agement (HRM). Outside Nairobi the College we have campuses in the City of Kisumu, and the towns of Nakuru and Eldoret and soon to be opened Mombasa and Thika cam-puses. It is our goal to ultimately have campuses in all counties when they become operational.

Also located in the County House on 5th floor, is our very specialized William Gitobu Library, named after the first Executive Director of the

It is our goal to ultimately have campuses in all counties

The college offers flexible modes of learning to meet the available

times of various students

The IHRM CollegeInstitute. The Library has several information resources, which can be grouped as Books, Electronic Journals, print journals, as well as CDs/DVDs. As a center of intellec-tual human resource management (HRM) inquiry, the IHRM William Gitobu Library aspires to be the most dynamic learning resources environment and a leading li-brary in HRM and related areas.

The Library ensures that its collection remains forward-looking, diverse in breadth and form, up-to date, and of world-renowned quality. Through IHRM website (www.ihrm.or.ke) the Library makes people aware of the resources available to them, and through innovation, it makes access to these resources easier.

The college offers flexible modes of learning to meet the available times of various students. Some classes are on fulltime basis while others on part-time which in-cludes lunch hour, evenings and Saturdays only classes. Another mode of study is distance learn-ing in which students are pro-

vided with learning resources to read at their own convenience.

Whichever mode of study the students select, they later take both external and internal examina-tions to confirm their mastery of the knowledge and skills acquired. Our flexible approach to transfer of knowledge has enabled us to produce professionally qualified HR professionals who are provid-

ing required HR services to meet needs of employing organizations.

The College faculty is composed of both academicians and HR prac-titioners who blend the theory and practice of HR to enable students appreciate relationship between HR concepts and the realities at the workplace. Most members of our faculty hold masters degrees with some pursuing their PHDs. We are proud of the contribu-tion that the faculty has made

towards ensuring that we have achieved outstanding best results in the KNEC Higher Diploma in HR for the last four years in a row.

Through one-on-one guidance on project work, our faculty has ensured that students complete their projects at the end of the course. We pride ourselves as the only institution offering a Coun-seling Skills course incorporated in

the higher diploma programme as an added value to their human re-source skills which we deem of vital importance in their roles of handling people in their various work places.

We would be pleased to provide you with more information on our programmes and how to enter join and grow in the HR profession.

Mrs. Margaret K. KinyanjuiPrincipal IHRM College



Organizations are limiting work measurement systems to the setting of base pay & for grading purposes

Future Generation HRHuman resource professionals are making slow strides in becoming strategic business partners within their organizations, according to new research from Hay Group, the global management consultancy. Only 34 per cent of those surveyed believe HR is making a significant strategic contribution to their organi-zation; most (60 per cent) positioned themselves somewhere in the mid-dle, confirming that there’s still much room for improvement. The research, which surveyed over 1,400 HR professionals and senior management from around the world, found that the cost cutting and ef-ficiency priorities – introduced to weather the economic storm of re-cent years – have now evolved to a focus on driving performance and growth. Meanwhile, the emerging HR concerns for the years ahead lie around developing the workforce and ensuring the right people are in

the right roles and doing the right work.“As market demands continue to change, organizational success will hinge on HR’s ability to connect hu-man capital decisions with business strategy. HR will need to stop cling-ing to traditional processes and in-efficient silos and move toward an integrated approach that links work and people to business results. Such change is critical if HR is to transition to an effective strategic business part-ner,” said Phil Johnson, Hay Group’s global head of work measurement. However, respondents report that there is still significant misalignment across HR disciplines:

♠ Only 40 per cent say work measurement and talent management processes are closely aligned

♠ Even fewer (36 per cent) say talent management and organizational effectiveness are closely aligned

♠ Slightly more than one-third (39 per cent) say they have moved away from traditional silos, but this leaves 61 per cent that haven’t – or worse still, are unsure.

The research highlights how HR will lag behind management expecta-tions if a holistic approach to people management - based on a frame-work of understanding work - is not adopted. Jobs are at the heart of HR processes, therefore it’s crucial to an-alyze work if people resources are to be best deployed to deliver on busi-ness objectives.Despite 76 per cent of respondents saying they use a formal work meas-urement system, the research sug-gests that many organizations are not seizing upon the full potential or making the most of their investment.“Organizations are largely limiting work measurement systems to the setting of base pay and for grad-ing purposes,” said Johnson. “We’re starting to see more companies use work measurement to support suc-cession planning, career paths and other talent management decisions, and as a job and organization design diagnostic - but most are missing out on its true value. Used to its full extent work measure-ment can feed enormously powerful information into strategic decisions and improve the overall efficiency of the organization. Understanding people and work is at the core of what we see as next generation stra-tegic HR.”About Hay Group

Hay Group is a global management consulting firm that works with leaders

to transform strategy into reality. We develop talent, organize people to be more effective and motivate them to perform at their best. Our focus is on making change

happen and helping people and organiza-tions realize their potential. We have over

2600 employees working in 85 offices in 48 countries. Our insight is supported by

robust data from over 125 countries. Our clients are from the private, public and

not-for-profit sectors, across every major industry. For more information please

contact www.haygroup.com/za

Quest for Global Communication StandardsOver the last few years, changes in the job market in terms of technolo-gies, sources of recruitment and competition have reformed the way Human Resource management is conducted in the country. HR profes-sionals face new and constant chal-lenges in some of their fundamental roles, such as recruitment and train-ing; and are often seeking new ways of differentiating or developing the skills and capabilities of their job can-didates. Effective communication is a key competence across all job sec-tors – but how do you measure one’s ability to communicate?A number of different sets of English language proficiency requirements and assessment tools are used by corporations, many of which are general, and not correlated specifi-cally to relevant job functions. In the meantime, the communication needs of corporate employees are increas-ing. The fact that major corporations are engaged in such vast efforts to define and assess their language needs clearly indicates that these groups recognize the importance of language proficiency for their perfor-mance. It is also a credible sign that corporations are actively trying to find solutions to their language chal-lengesCommunication here means the abil-ity to speak and be heard; to convey messages and generate feedback. Language therefore becomes a very important tool. In the end, a globally recognized standard of measuring English language capabilities for use in work environment becomes a ne-cessity. So how then can the English language be assessed and employee productivity improved using globally acceptable standards of communica-tion?

TOEIC and Human ResourceThe Test of English for International Communication (TOEIC) is a devel-opment of the US based Educational

Testing Service (ETS) and its purpose is to measure achievement and use of the English language in a business setting. Locally, Learning and Testing Services (LTS) is the only entity of-fering the TOEIC tests in East Africa. Founder and CEO of LTS East Africa, Kuda Nhiwatiwa says the service tar-gets mainly individuals, corporate and learning institutions.”We want to validate and in essence reveal gaps in English language application. There are no passes or fails, just a score that shows an individual’s capacity,” says Nhiwatiwa.The TOEIC test results gives employ-ers a surety that the employee they are about to take on board meets global standards of communica-tion in the English language and can therefore engage their clients and conduct business on their behalf ef-fectively. “We live in a knowledge economy and this means that information is transferred quite often. For there to be meaningful interaction between businesses and clients, both poten-tial and existing, custodians of said knowledge need to be effectively equipped with language skills. It is

not enough to know how to write down your thoughts; you are re-quired to be in a position to put it across in speech as well, “says Nata-sha La Tegola, Regional Manager at LTS.

TOEIC for business purposesFor more than 30 years, the TOEIC test has set the standard for assessing English language skills used in the workplace. Today TOEIC test scores are used by over 10,000 companies, government agencies and English language learning programs in 120 countries, and more than 6 million TOEIC tests were administered last year.TOEIC is useful to human resource in that employers can relate the test scores to the job openings and gauge whether the potential employee can perform the duties. Critical hir-ing decisions can also be pegged on these test results; for instance, the HR manager selects the employee with the English language capabilities that best suits the job. In the quest for better opportunities local job seekers are expanding their

40%work

measurement and talent

management processes are closely

aligned

36%talent

management & organizational

effectiveness are closely aligned

39%moved away

from traditional silos



Skills Required of Managers

By William [email protected]

Katz (1955) in a classic article in the Harvard Business Review titled, “The Skills of the Adminis-trator,” divided good management skills into three general areas: hu-man relations, technical, and con-ceptual.

This article builds on that foun-dation and adds two more to bet-ter account for management skills need during an era of globalization and rapid change. These practices have been polished over the last 25 years and have indeed enhanced the HR function to the level it is currently.

These five domains for good management are: Katz Core FiveHuman Relations Leadership

Technical Technical

Conceptual Strategy & Tactics

Management

Self-Mastery“Success usually comes to those

who are too busy to be looking for it.” — Henry David Thoreu

1. TECHNICAL SKILLS

Today’s business graduates have an abundance of technical knowledge. They can do linear pro-gramming, calculate a discounted rate of return, develop a sophisti-cated marketing plan, and crunch numbers on a computer spread-sheet. They’re technically solid, but most lack the interpersonal and social skills necessary to lead peo-ple.” Robbins, S. (1989)

My sister lived in Burma and was having some wiring installed by a native electrician. Again and again he would come to her for instruc-tions, and finally, in exasperation, she said, “You know what I want done. Why don’t you use your com-mon sense and do it?” He made a grave bow and said, “Madam, com-mon sense is a rare gift of God. I have only a technical education.” — Carl Compton in the The Public Speaker’s Treasure Chest

Most people get their first job based on their technical skills (un-less one happens to be the daugh-ter of the owner, but that is another story). These jobs include tradition-al jobs such as software program-mer, engineer, hair dresser and machinist; to the more exotic ones such as web master, systems in-tegrator and beauty consultant. In fact, the U.S. Labor Department’s Dictionary of Occupational Job Ti-tles contains over 28,000 different technical skills.

Technical skills does not imply high technology since janitors, tel-ephone operators, and secretaries are included in this area. It may require a degree or just on-the-job training. For example, a story is told about a young man, who was hired to work at a supermarket.

He reported for his first day of work and the store manager greet-ed him with a warm handshake and a smile, gave him a broom and said, “Your first job will be to sweep out the store.” “But I’m a college gradu-ate.” the young man replied indig-nantly. “Oh, I’m sorry. I didn’t know that,” said the manager. “Here, give me the broom, I’ll show you how.”

Not all technical skills are equally in demand. One of the prime mis-

job searches as far as Europe, the US and Middle East. Thousands of companies worldwide are now making it a requirement for appli-cants to submit TOEIC test results along with their applications. For any potential employee, having the test scores on their resumes is an added advantage and it gives them a competitive edge. Insti-tutions of learning also find the TOEIC test scores very useful in that graduates are better prepared for the job market. A good grade in the final exams is not enough if one cannot effectively express themselves in job interviews and other forums. LTS East Africa has made it pos-sible for individuals, companies and institutions to access these testing services. As the only entity that provides the TOEIC assess-ment, their facilities at Taj Towers, Upper Hill are often visited by test takers from all walks of life. The TOEIC assessment combines Listening, Reading, Writing and Speaking tests. The founder and CEO, Kuda Nhiwatiwa, cites plans to expand these services to Tanza-nia, Uganda and Zimbabwe. The face of human resource man-agement is changing fast and it is only sensible for companies, insti-tutions and individuals to reposi-tion themselves. High standards of communication are required in every sector and particularly in areas where Kenya interacts with the rest of the world. As Kenya po-sitions itself globally as a business hub and a source of top caliber human capital, it becomes in-evitable to align itself with global standards. Adaptability to globali-zation has meant that HR profes-sionals are expected and required to keep in tune with the chang-ing times, i.e. the changes taking place across the globe.

By Natasha Le Tegola

takes high school grads and college students make is not understand-ing the value society places on dif-ferent technical skills. Some appre-ciate in value (programmers), while others are in decline (telephone op-erators and secretaries).

Technical skills can also become obsolete. As any one who is in the software area can attest, their knowledge has a limited shelf life. This is an increasing problem for many companies. Its like needing a workforce running with the com-puting power of a calculator when one needs a Pentium microproces-sor. Just having a sound set of tech-nical skills is not enough for those who wish to move up in the organi-zation—they must also develop other types of management skills.

2. THE DOMAIN OF LEADERSHIP

USN, Rear Admiral

Assessing Leadership

“My father had a simple test that helps me measure my own leader-ship quotient: When you are out of the office he once asked me, does you staff carry on remarkable well with-out you?” (Martha Peak, 1992)

In a 2005 study called, Why New Hires Fail, it was pointed out that it’s the human relations skills that gets one fired. Top failure areas included: Coachability (26%): Emo-tional Intelligence (23%): Motivation (17%): and Temperament (15%). Lack of technical skills accounted for 11% of failed new hires.

One of the greatest source of job satisfaction and dissatisfaction with management is the quality of the relationship an employee has with their boss. If their manager lacks leadership skills, morale goes into the dumpster and turnover sky rockets.

It has long been known that while top-notch technical skills allow one to be considered for the next level of the management chain, it’s your people skills that allow you to keep the job. Too often, a technical expert gets promoted and then can’t get along with others—creating a lose-lose situation for the company and that individual.

Management rarely want to spend hard dollars since these are considered to be “soft” skills. Top management’s failure to under-stand the importance of developing leadership and social skills in the management ranks is both penny wise and pound foolish.

3. BUSINESS MANAGEMENT DOMAIN STRATEGY AND TACTICS Assessing Strategy and Tactics

“Looking for differences between the more productive and less pro-ductive organizations, we found that the most striking difference is the number of people who are involved and feel responsible for solving prob-

lems.” — Michael McTague, Man-agement and training consultant, Personnel Journal, March 1986

For those that see themselves in the executive ranks or desire to own their own business, another category of management skills must be developed. Conceptual skills deal with the ability to use mental heuristics and understand paradigms to solve problems and make decisions.

Unfortunately, many individuals lack the ability to successfully solve complex problems.

When the quality movement be-gan to blossom in America during the 80s, one of the foundation prin-ciples taught to employees were the Seven Tools of Quality. These were really very simple techniques such as flow charting and Pare-to analysis. When used routinely throughout the organization, this basic tool set was enough to allow companies like GE, Motorola, Toyota and Sony to develop a reputation for high quality that resulted in bet-ter profit margins.

At the management level, these skills come into play in a different way. Executives must deal with a rapidly changing environment fraught with risk and uncertainty. They must develop marketing, sales and competitive strategies that are better than their competitors if they hope to get in front of the rest of the pack.

An even more subtle strategy and tactics skill involves develop-ing the ability to find new business opportunities. There’s an old saying that goes, “No opportunity is ever wasted. If you miss it, one of your



competitors will find it for you.”For example, while many man-

agers consider Microsoft’s Bill Gates to be a techno geek, he is much more than that. He obviously has a vast knowledge of computer programming or Windows would not have evolved. But it would have only been one operating system among many if he lacked the ability to think strategically.

“The most dominant executive de-cision type, will be decisions under uncertainty.” — Henry Tosi and Ste-phen Carroll (1976).

4. SKILLS DOMAIN MANAGEMENT Assessing The Management Domain

[Referring to his managerial counterparts in local government:] How would you like to run a busi-ness where your top management can change every two years, your revenue can depend on the whims and fancies of state and national government, and you have to convince more than half a million people that you can col-lect garbage, control crime, enhance safety, and brighten the future bet-ter than anyone else? — Anonymous executive, Chief Executive, Winter 1982-1983

Despite the fact that many indi-viduals inside organizations consid-er themselves to be part of manage-ment, there is a surprising amount of confusion on exactly what the term “management” means. If you accept the wordnet definition from the Princeton.edu site, it is “the act of managing something.” Another better definition that captures the

essence of management goes this way, “Management is the efficient allocation of scarce resources to ac-complish an organizational goal.”

5. SKILLS DOMAIN SELF-MASTERY

A competitive world has two pos-sibilities for you. You can lose. Or, if you want to win, you can change. Lester Thureau, Dean, Sloan School of Management, M.I.T., 60 Minutes, February 7, 1988Assessing Self-Mastery

“The easiest person to deceive is one’s own self.” — Edward Bulwer-Lytton, 1803-1873, English novelist and playwright down.

But it is without doubt the most important skill to develop. When one is in power, even small faults become noticed, magnified, and dis-cussed by underlings. Impatience as an engineer is barely noticed, but in the vice-president of engineering, it’s a major problem.

This was driven home in a recent book by Marshall Goldsmith called, What Got You Here, Wont’ Get You There. In this book in which he doc-umented twenty-one major faults of the CEO’s he has worked with as a result of a number of years of executive coaching. These include, failing to give recognition, making excuses, and not listening.

The best executive is the one who has sense enough to pick good men to do what he wants done, and the self-restraint to keep from meddling with them while they do it.—Theodore Roosevelt, 26th American President

Conclusion

Typically, what goes unseen gets neglected. There is an old story from the Middle East that illus-trates this point.

One day a neighbor happens to walk by and see his friend Nasrudin looking for something so he asks, “Nasrudin, what have you lost?” “My key,” said Nasrudin. “Exactly where did you drop the key?” “In my house.” “Then why are you looking here for your key?” “There is more light here than in my house.”

Moral of the Story: It’s where you are not looking that you will find the key to what you are looking for.

For individuals and organiza-tions alike to grow, they must in-vest in the good management skills required to prosper. It’s the combination of the skills in these five domains: technical, leadership, management, self-mastery and strategy and tactics that make all the difference between success and failure.

Discover how to assess these skills. Take action now.

Striving for success without hard work is like trying to harvest where you haven’t planted.—David Bly

William K Birech works at the REA as a Sen-ior HRO/Administration. He holds an MBA

in Strategic Management /HR from the Uni-versity of Nairobi and B.Com from CUEA.

Diary of an Entrepreneur5:00a.m. – I wake up, actually to

be perfectly honest, I really didn’t get any sleep all night, it’s just that I have now given up pretending to sleep by closing my eyes. End month is to-morrow and I have no idea where to get money for all the bills I have to pay (including salaries for my staff). End month is to an entrepreneur what mid-month is to the employed…only multiply that by 100.

I look at the ceiling for a few more minutes then pick up my laptop and start working on a report that is due tomorrow. Maybe this time around the client will pay on time.

8:00a.m. - I am ready to head off to work. I am dressed and have dabbed some makeup to hide the dark patch-es below my eyes that are a result of lack of several days sleep.

9:00a.m. - My first meeting of the day. This is why I do what I do. It’s great to listen to a company owner’s challenges and work out the ap-proach they should take. As we talk, I see in my head all the management tools I read in school coming together to develop solutions. I come up with so many different approaches and discount those that, from my experi-ence, have not worked in similar situ-ations.

As we talk some more, both the cli-

ent

and I become excited because it’s be-coming clearer and clearer what ap-proach we need to take. This is why I do what I do.

12:00pm – Another meeting, this one though not an exciting one. If anything, it’s downright annoying. My auditor made a mess of our last audit and the Revenue Authority is on our back for documents he didn’t file. We are meeting with him to discuss what went wrong and all he is giving me is jargon translated …a whole load of bull. Where the hell did I find this guy? He is not even giving me straightfor-ward solutions.

After a terrible exchange, the meeting ends. Ohhh…I really get an-noyed when “professionals” do a lousy job and don’t have the courtesy to own up. I wish there was a way to take back what we paid him then take him out of the business….yeah my bad temper talking.

1:00pm – Yes another meeting, this time am trying to win over a poten-tial client. My God! This guy cannot concentrate for 2 minutes continu-ously. I wish I had picture cards; those might be able to hold his attention a bit longer…haha. Okay, I have got to change my strategy if I intend to

win this job. What to do what to do…“Jonny, did you see

yesterday’s match, I was sure ManU were on the

way out”. Yes that got him now let’s move

that to business at

hand...”Did you know Chelsea hired a Consultant to identify players that help them portray a certain image and brand as a club. Now if we are to take a similar approach with your company…”Yes, we got the contract to develop their marketing strategy.

3:00pm – Staff meeting. It’s al-ways good to hear what they have to say. Today though I have so many things running through my head I can barely concentrate…blah blah blah …Salary Increment. SAY WHAT! Meet-ing’s over.

4:00pm - My inbox is full and I have a number of documents to go through and reports that need review. Oh yes and I need to call the bank to see if they can give me an overdraft this month. I dislike talking to the bank, they make my life so much harder and charge me so much for anything and everything. Sometimes I think there is no difference between put-ting money in the bank and putting it under my mattress. If anything it’s cheaper to put it under my mattress.

Let me call my payment overdue clients and see if they will pay before end of day tomorrow before trying the bank. I really dislike talking to the bank.

5:00p.m. – My phone rings. It’s a potential client I followed up all of last year but barely made a scratch….“Hello, am I speaking to the Director of ABD? My name is Mr. Njue from UBD Limited and I’m calling in regards to a proposal you sent early last year”. We have received a confirma-tion from the board to go ahead with the project. Can you send someone to our offices tomorrow to collect the mobilization cheque?”

That’s why I do what I do.

By Annabell KaranjaDirector & Management Consultant

AfriBusiness [email protected]



Think Twice Before Firing an Employee

Sammy K. [email protected]

Section 45(3) which was the gist of the petition provides that “An employee who has been continu-ously employed by his employer for a period not less than thirteen months immediately before the date of termination shall have the right to complain that he has been unfairly terminated.”By his judgment dated 18th May, 2012, Justice Isaac Lenaola ruled and rightly so, in a land mark constitutional petition that Section 45(3) of the Employment Act, 2007 is unconstitutional.

The Facts of the CaseThe brief facts of the case were that The Petitioner, Samuel Mom-anyi, was an employee of SDV Transami Kenya Ltd. He was em-ployed there on 16th January 2009 as a Project Manager and after a three month probation period, he was confirmed in his employment. It was his case that he had left his employment with Interfreight East Africa Limited, upon being “enticed”. He was fired on the 27th February 2010 due to non perfor-mance slightly over a year in ser-vice. In court he averred that when his services were terminated he had not been heard and no lawful reasons were given for that action.Though the Petitioner admitted that his employment contract provided that any dispute between the par-

ties would be referred to arbitration before the Industrial Court, but his claim was struck off under Section 45(3) of the Employment Act, 2007 as he had not completed thirteen (13) months’ employment with SDV Transami. He wanted the court to among other things make “A decla-ration that Section 45(3) of the Em-ployment Act 2007 is inconsistent with the provisions of the Constitu-tion of Kenya particularly Articles 28, 41(1), 47, 48 and 50(1)...Justice Lenaola in a lengthy but well reasoned judgment proceeded to cite that law as oppressive. In that regard he states that “…I have shown above, Section 45(3) is un-reasonable and has the opposite of what the object of the Employment Act was intended to be.”

Conforming to the New Constitution of Kenya, 2010Conforming to the Constitution of Kenya, 2010, Justice Lenaola said, “In my view, there is clear merit in the arguments by the Petitioner. I say so because when the Employ-ment Act was enacted in 2007, the Constitution 2010 had not been promulgated and there was neces-sarily a need to align the provisions of all statutes enacted prior to it, with the said Constitution.”

This ruling marks the timely begin-ning of the employment relations revolution in Kenya after the prom-ulgation of the Constitution in 2010. In a recent case, Justice Majanja had ruled on the issue of whether the Industrial Court was a court with concurrent jurisdiction with the High Court as seen through the new Constitution in Article 162. He ruled that it lacked the jurisdiction and in his words, he said “…Parlia-ment did not have the constitutional authority under the former Consti-tution to create a Court of equiva-lent status with the High Court.” Something Justice Lenaola wholly agreed with. In this Case however, the judge’s point of view is that the current Employment Act, 2007 was en-acted during the subsistence of the former independence Constitution which did not have a robust Bill of Rights as the current Constitution. Section 45(3), which was the gist of the petition, provides that “An employee who has been continu-ously employed by his employer for a period not less than thirteen months immediately before the date of termination shall have the right to complain that he has been unfairly terminated.” Without going into the meaning of what constitutes unfair termina-tion, the judge took issues with the figure thirteen months. He posed the question, why is it that a person who has worked for one (1) year and one (1) month the only one

who can claim that his employment has been unfairly terminated and that one who has worked for less than that period cannot have the benefit of that claim?

In Comparison with South Africa To answer the question logically, he notes that South Africa was once visited with the same issue and upon the post-apartheid Constitu-tion being enacted, the Basic con-ditions of Employment Act, 2007 was subsequently passed and its objects were inter alia, to; “… give effect to the right to fair labour practices referred to in Section 23(1) of the Constitution … and thereby to comply with the obliga-tions of the Republic as a member state of the International Labour organization …”In comparison to the two jurisdic-tions Justice Lenaola wondered out loud stating “I have elsewhere above reproduced Section 36 of the South African Act and it is easy to see that a person who works for less than 24 hours a month may genuinely have no claim for unfair termination but how can one explain that a person who has worked for a full year and more can be unfairly terminated and have no recourse to the protection of the Law?” This appears to be totally contra-dictory to the purpose upon which the Employment Act, 2007 was enacted and that is inter alia to declare and define the fundamental rights of employees and to provide basic conditions of employment of employees.

So Why is This Rul-ing Trans-formational? In my view, this case raises signifi-cant issues especially for employ-ers and trade unions representa-tives in their negotiations for the terms and conditions of service. This pits them against the provi-sions of the new Constitution as compared to Labour Relations Legislation that existed before its promulgation.The issues raised in this case concerned the Jurisdiction of the Industrial Court and the yet to be established Employment and La-bour Relations Court. Others were the question on Discrimination and Fair Labour Practices as enshrined in the Constitution.

1. The Place of the Employment and Labour Relations CourtWith regard to the jurisdiction of the Courts, the Industrial Court as per Judges Majanja and Lenaola, is, and has always been misplaced. As per the yet to be established Employment and Labour Relations Court, being set up at the same level as the High Court, the Consti-tution provides that its jurisdiction will vary in that it shall be set by parliament through Legislation. I shall not endevour to go into the contents of the Bill or do a com-parison with other jurisdictions but it was worth noting the judges’ ad-dress on the matter of the jurisdic-tion of the courts.

2. DiscriminationDiscrimination was also at the centre of the petition in the case. Article 28 and 41 of the Constitu-tion read together, is indicative of the fact that the meaning of Fair Labour practices is yet to receive its full definition. But for starters, Justice Lenaola in agree-ment with Justice Wilson in a US case (Andrews vs. Law Society of British Columbia (1989) I SCR 321) defined Discrimination as a “distinction which whether inten-tional or not but based on grounds relating to personal characteristics of individual or group [which] has an effect which imposes disadvan-tages not imposed upon others or which withholds or limits access to advantages available to other members of Society”.

3. Fair Labour PracticesFinally, Fair Labour Practices as enshrined in the Constitution at Article 41 appears to be left open and rightly so. For the avoidance of technicalities, as was the case before the promulgation of the Constitution, Employers shall be guided by Article 259(1) of the Constitution. In the Momanyi case, the para-digm shift is to ensure that as per Article 259(1)(b), despite the fact that Employment Contracts are still commercial contracts, their interpretation shall be calculated to advances the rule of law, human rights and fundamental freedoms in the Bill of Rights.

Sammy K. Waweru is an Employment and Labour Relations Lawyer.

Contact: [email protected]



Listed IHRM New Members From May 2012 to June 2012INDIVIDUALS NAMEAileen BarazaAlex MusauAlexander Ngombaru MuthioraAngela Njeri KaranjaAnn Karimi KilemiAnne Chepchirchir KiprotichAnne Muthoni GathuraAnthony Rachier ChristopherArgwings Rabala AbuyaAshleigh Mumbua MichaelAthman Matano HeriBetty Wekesa NafulaCaren Chepkorir MetetCaroline Wamucii KaranjaCarolyn Auma GengaCarolyne Kwamboka OnyanchaCatherine G.M MwendaColline Wangai MaaraDaniel Njoka KimweaDorcas Akinyi AdhiamboDorine Akinyi OdongoDorothy Seteyio KoikaiDr. Peter Elungat OpakasDuncan Ndegwa GitongaDuncan Nyanjui NdunguDuncan Odongo OjiemEGLAY TUVULLA TSUMAElijah Kipkemei KosgeiElizabeth Kalee KasivaEsther MahiriEsther Wangithi WaiganjoEverline Nyakundi ikonge

Fredrick Mainda Nyang’auGeorge Otieno AyieraGerald Mwangi MuturiGrace Wairimu MureithiHamoud Mwinyi MguzaHannah Wanjiku NdegwaHesbon Saro MaeHezron King’oina NyameinoIbrahim Oiro OderoJackline Chepngeno LeitichJames Nyakweba OpensonJane K KamauJanelizah Samba MwangemiJenifer TimbomeiJohnson Maina KarariJose P MaliaJoyce ShikomelaJudith A. YamoJudy Wanjiku WamaeKennedy Kirima NteereKennedy Mutua MutukuLaureen Akinyi OmolloLilian Wasai MagangaLinet Kohanya AmolloLinet Moraa ObwogiLorna Agnes OnyangoLucy Njoki MwaiLynn P.A MugeniMatilda K. MwangiMaureen MatetaiMichael Mutinda KyuleMilcah Chepkorir KiruiMohamed Aden AbdiMomanyi Nelson BogonkoOscar Mutua Mutua

Pauline Akoth MungoPeter Muendo NduvaPeter Omache NyakoiPhoebe Atieno OnyangoPius Kithuka MuiaPurity Nkirote MburuguRael RotichRedempta Auma OmbamRisper Anyango ObureRisper Atieno OmondiRobert Ochieng OwuorRose OgotRuth Mukwambo OpiyoSalad Kikuyu SariteSammy Kipkorir KigenSilas KatamSilverius Mresia WakoliSolomon Muthemba KiawaStephen Eshiteti NyikuliSusan wanja KarimiTeresia K.K.LingeVeronica Ngendo WambuVicky Kemunto OcharoViolet Anyango OkeloWilberforce Mutama MunokoZablon Mwongera Rukaria

CORPORATE MEMBERSVTTI KENYA LIMITEDToyota Kenya LtdThe Rockefeller FoundationHuawei Technologies (K) Limited

NEW APPOINTMENTThe University of Nairobi Alumni Associa-tion (UONAA) has appointed Johnson Ireri Kinyua as the Executive Director. Johnson was previously working with KCA Univer-sity as Ethics and Governance Manager/BDM. His new responsibility is to leverage the alumni’s skills, talents and resources to support the University of Nairobi to

become a world-class university commit-ted to scholarly excellence. Other previous engagements were Director of NAVNET and Management Advisor (Malawi) with VSO Jitolee. Johnson holds B.Com and MBA from University of Nairobi, Higher Diploma (HRM) and currently a PhD Candidate. He’s a Certified Ethics Officer (CEO) from Ethics Institute of South Africa. He’s a profes-sional member of KIM, IHRM and EthicSA.

Expatriate CompensationThe practice of compensating

overseas employees differently from domestic employees has been a challenge for a long time. Any inter-national human resource executive asked about the goal of expatriate compensation packages will proba-bly use the word “whole” or the con-cept of wholeness in their answer.

To them the concept of wholeness refers to the organization’s desire to ensure that the expatriate does not experience an evident gain or loss when all elements of the com-pensation package are combined. On the other hand, the expatriate’s perspective, wholeness may illus-trate their desire to evade spending a dollar more while abroad than they would at home.

In this connection, many organi-zations find themselves in the posi-tion of having to offer expatriates a variety of alternative compensation elements in order to sustain their sense of “wholeness.” A primary fea-ture associated with “wholeness” within the context of expatriate compensation is discussed below using host country market cost of living.Host country market cost of living.

This factor is concerned with the consideration by the parent organi-zation of local markets in the host country and has an impact on ex-patriate compensation. Most firms, according to Price Waterhouse (1996) consider the cost of living in the host country when computing expatriate compensation.

Cost of living allowance may be provided to compensate the expatri-ate for the differential cost of mar-ket bundle of goods, which may in-clude food, clothing, entertainment, medical, and transportation, among others. Within this framework, ex-patriate compensation is adjusted upward for higher costs of living, but is not adjusted downward if the cost of living in the host country is less than the home country.

Some commonly used approach-es to develop compensation pack-

ages are (a) The balance-sheet (b) The destination-based approach (c) The international headquarters ap-proach.The balance-sheet approach.

While there is some difference in the use of this approach, research indicates that the balance sheet method remains the method of choice for most organizations em-ploying expatriates.

The idea of the employer is to sustain the expatriate employee’s standard of living throughout the assignment. In general, the goal of the balance sheet approach is to provide equivalent purchasing pow-er abroad to help maintain home lifestyle. When parent organizations utilize the balance sheet approach, it is essential to keep expatriate sala-ries in line with their home country peers, and not with host country col-leagues. However, under the balance sheet approach, an expatriate is re-sponsible for the same costs and expenses as a domestic employee; while the parent company pays ad-ditional income in an effort to keep the employee whole. The destination-based approach.

A new approach to compensating expatriates has emerged. It takes into account what competitors are paying, and how expatriate com-pensation compares with the com-pensation levels of local employees in comparable jobs. With the desti-nation-based approach, traditional allowances (housing, children’s edu-cation, and incentive premiums in particular) are sharply reduced.

The destination-based approach is a clear shift away from the bal-ance sheet approach. The destina-tion-based model treats the expa-triate employee as a resident of the host country. It encourages a “when in Rome do as the Romans do” men-tality and employees are expected to adapt to their foreign way of life instead of living above it.

This approach has its disadvan-tages. For instance, organizations must understand that the most ex-

pensive expatriates are going to be those who least want to be in an overseas assignment. Therefore, for the destination-based approach to have any chance of being success-ful, it is generally accepted that an organization must have expatriate candidates who are motivated to seek foreign posts – employees who may be willing to forgo lavish allow-ances and benefits. The international headquarters approach.

Under the international head-quarters approach, expatriates are compensated as if all expatriate employees came from the same regional headquarters and are be-ing paid on the same balance sheet program. This type of approach can be to some extent complicated to administer. Since the goal is equity in a geographic location, the organiza-tion must find viable ways to man-age social security, pension, and tax-ation laws across country borders. Conclusion

The issues related to expatri-ate compensation can be complex. There are a variety of factors that can directly affect expatriate com-pensation, with the abovemen-tioned approaches an organization should consider. It is also likely that, for some organizations, the answer to the difficult expatriate compen-sation decision may not be any of those suggested here – in that some organizations may not utilize the typical or most common approaches to expatriate compensation.

By Dr. Beatrice DimbaSenior Lecturer -School of Management and

CommerceStrathmore University

[email protected]

Robert H. Sims, Mike Schraeder (2005). Expatriate compensation: An exploratory review of salient contex-tual factors and common practices. Career Development International Vol. 10 No. 2, pp. 98-108



Generation YBy Lydia Limbe.

[email protected] you been listening to Kiss FM morning drive with Caroline Mutoko for the past one month? She and her co-host Jalang’o have been dedicat-ing a good part of their show to the young generation, fondly referred to as Gen Y.

Initially, it started with disturb-ing, or rather, disheartening realiza-tion that the generation Y are on the ‘verge’ of breaking. Why? Generation Y was moving at a supersonic speed that is bound to break them, or even kill them, as we have heard them call in and speak on radio.

Because they are in a hurry to ‘make it’, they hop from one job to another with very little emphasis given on experience, which is highly valued by the older generation. In-stead, they lay emphasis on making the big bucks now. It’s all about the money for them.

The information age that they are living in is proving to be putting a lot of pressure on them. Guess who their role models are? Rhihana, Nikky Minaj, Justin Beiber, just to mention but a few. These are their icons, who are talented, their music is bought world-wide, and, in the eyes of gen-eration Y, they have ‘made it’. They have money, they are famous, and they’ve got power, the three things that generation Y is craving for.

Of course the young people want to emulate their icons, and want to be like them, have the three most coveted things (money, fame, power) by the time they are twenty four years of age or even younger.

This ‘race’ brings with it a lot of problems. They can’t stick to one job for a reasonable period of time; they have a twisted notion of what success is in the name of being am-bitious, and overindulge in social ac-tivities that lead to old-age related medical problems like high blood pressure, ulcers, and sometimes even death.

For those of us who value hard work and understand the concept of gradual success, we tend to see the actions of generation Y as a ticking time bomb.

Caroline Mutuko, and her co-host Jalang’o on Kiss FM in their quest to try and contribute to the young people, offered to use their highly influential position to try and get the generation Y jobs, which they have been posting on social media as this is the youth’s favourite mode of communication lately, apart from mentioning it on radio.

By God the comments such post-ings received!! Some of them rang-ing from, ‘ I didn’t go to university to get a job as a driver’, never mind that the job was an executive driv-er’s job, to be attached to expatriate workers. Now a smart person would automatically think of all the highly connected people they will be able to network with, in the course of their job that would lead to their next job.

Another commented, ‘two years experience and I’ve just graduated yesterday? That’s segregation’.Never mind that the employer did require someone with two years experience.

However, some were smart enough to apply. Below was one scathing feedback form a prospec-tive employer, copied from Caroline Mutoko’s facebook page:

‘Feedback from an employer. Read and take note.

I would like to state that some, no most of the emails I received were of terrible quality and it got me wonder-

ing, do young Kenyans know how to apply for a job? Do they know how to write a CV, not necessarily on Mi-crosoft Word but even on email? I was not looking for a fancy CV or resume; it is a housekeeping job after all, but a basic simply written docu-ment that would prove that you have the basics of marketing yourself. I mean if you cannot market yourself to me, your prospective employer, how will you market my guest house to my guests? What made it worse is that I noticed that most of poorly written ones were from university students.Interviewing skills I feel are desper-ately needed. How do you pick up a phone during an interview and start giving directions and when you are done you do not even apologize to the panel for the interruption? This really shocked me!Caroline, seriously, this is informa-tion that needs to go out there. And if you’ve done it before, I think you should consider doing another run of it.I strongly feel that this should be cor-rected as very many form four leav-ers start looking for jobs straight out of high school. How will they suc-ceed if no one shows them how?LUISA.’

Remember the last census stated that majority of our population are the youth. If this is the attitude of our current and future workforce, will their naivety kill the already known potential of industrious Kenyans?

Think about it.

Board Effectiveness

in the 21st Century

BY Gabriel Lubale [email protected]

Are you a Board Member of a SACCO or CBO or CSOs or Self-Help Groups. Read this article to ascertain if your Board has what It Takes. IntroductionThe Worlds Economic crisis that began in 2008 and coupled with many scandals that have occurred in the last decade has increased the focus on both the role of the Board and Senior Management and their effectiveness in executing their responsibilities.



The Board is the supreme deci-sion making organ of the organiza-tion. Its main role is to formulate and enforce the same whereas the Senior Management is the executive organ of the organization which the Board has delegated the authority to manage the affairs on day-to-day basis. The roles of the Board and Senior Management are separate and distinct in the letter of the Law. However in practise there is high tendency of overlap. Therefore the Board should perform their duties with a high degree of independence and tempered with level of interde-pendence with Senior Management. Because in the eyes of Stakeholder they are the same and one thing!

The Boards and Senior Manage-ment are under intense scrutiny — from Shareholders, Members, Policy Makers, Regulators, Politicians, the Media, employees, and other Stake-holders Suppliers among others. The Board Members and SACCO Senior Officers know that, since their work happens behind closed boardroom doors, they rarely receive praises for helping the Organizations succeed and solve problems. But they are placed on the altar ready to be sacri-ficed when things go wrong whether real or fiction.

Given this precarious situation they face an ever-evolving land-scape, Board Members and Senior Officers should focus on under-standing the scope of their key re-sponsibilities and engaging in a con-sidered process to discharge those roles professionally.

The eight Key Responsibilities for effective Boards as identified by the Gurus of Corporate Governance are listed here and I will discuss these in detail herein.

1. Formulating and Implementing the Strategy

2. Managing Risks and Crises 3. Corporate Ethics4. Monitoring Performance 5. Handling the

Transformational Transactions

6. Managing Evaluation, Compensation, and Succession

7. Communicating with

Stakeholders8. Dealing with the Board

Dynamics

Formulating and Implementing the Strategy

Strategy sets the direction for a SACCO and impacts virtually every-thing the SACCO exists for. The right strategy is the starting point for success. The board has a vital role to play in overseeing management’s formulating and implementing this. But this is a challenging area be-cause it requires Board Members to thoroughly understand:

i. the SACCO or CBO or Self-Help Group,

ii. the industry, iii. emerging trends and risks,

and iv. Senior management’s

assumptions. Equipped with the right informa-

tion and at the right time, Board Members can engage in a robust discussion that allows them to con-tribute to management’s proposed strategic plan. Ideally, their involve-ment will help the SACCO adopt the plan most likely to enhance mem-bers’ value.

Insight!There is need to highlight the

leading practices for effective board oversight of strategy development and implementation.

Managing Risks and Crises

Today’s SACCOs face a vast array of risks — both known and unex-pected. Some risks turn into crises that have significant implications for operations or even a SACCOs’ future. Given this setting, it’s a challenge for boards to get complacent that an in-herent risk or emerging issue is being addressed appropriately — but it’s a critical responsibility.

It has been noted that most Boards frequently delegate ele-ments of risks and crises oversight to committees — most commonly to the Audit Committee. But ulti-mately the responsibility for over-sight - buck stops with the Full

Board, and each Board Member in-dividually should understand the key risks and crises foreseeable.

Insight!There is need to help Board

members better understand the changing landscape of risk and cri-ses oversight, management’s role in managing risk and crises, and ef-fective ways to manage the same. It also includes insights on how boards can most effectively discharge their responsibilities when a crisis strikes.

Corporate EthicsCompliance with the Laws and

Regulations is critical. Board mem-bers recognize it is only the starting point in creating a culture of ethi-cal behavior. The right tone at the top, reinforced by Senior Officers throughout the SACCO, is vital to en-sure these values cascade to all em-ployees at the bottom.

Insight!There is need to help boards un-

derstand how tone at the top is set and the role they can play in over-seeing SACCO’s culture, especially in times of change or crisis. Also em-phasizes the importance of Board Members demonstrating ethical be-havior – living example.

Monitoring Performance Boards use many data points to

monitor SACCO’s performance — including traditional financial facts and figures and non-financial met-rics, along with peer and industry information. Knowing what metrics are most effective in helping direc-tors to understand performance and see early indicators of trouble is challenging. Astute Board members also know it is important to raise concerns based on a gut feeling — even if their concerns prove to be unfounded.

Insight!There is need to share insights on

selecting the right facts and figures, setting and monitoring targets, and effectively sifting through informa-tion sources.

Handling the Transformational Transactions

At some stage, a SACCO will go through a potentially transforma-tive transaction. This could be an acquisition, divestiture, succession management or other business alliance such as a joint venture. The stakes for the SACCO are high in terms of investment, reputa-tion, and whether the deal ulti-mately contributes to the success of the SACCO’s overall strategy. Given the significant potential im-pact of a deal on members’ value, boards have a key role in working with SACCO executives to set the stage for successful transactions and maximize their value.

Insight!There is need to provide insight

as to how boards can do this ef-fectively, and outlines key consid-erations for the different stages and different types of transac-tions.

Managing Evaluation, Compensation, and Succession

Executive compensation may be the board’s responsibility most scrutinized by members, inves-tors, the media, and other stake-holders. Stakeholders have ex-tensive visibility into executive remuneration levels, but perhaps more limited understanding of the complexity Board Members face as they try to get it “right.” Boards must balance many factors in reaching compensation decisions — attracting and retaining top talent while incenting behaviors that will achieve long-term Mem-bers’ value.

Insight!There is need to provide in-

sights on effective evaluation and compensation processes and the importance of director independ-ence in making these sensitive decisions. It also deals with the is-

sue of CEO succession — whether planned or unplanned — and of-fers advice for boards to consider as they deal with this important issue.

Communicating with Stakeholders

Disclosure requirements — for financial statements and other regulatory filings — have become more voluminous and complex and are under greater scrutiny. Stake-holders have also been asking for more information, beyond what SACCOs are required to provide, to really help them understand performance and risks. These fac-tors alone make the board’s role more challenging. In addition, new technologies are changing how SACCOs communicate with stake-holders and how stakeholders and SACCOs critics exchange informa-tion.

Insight!There is need to describe how

boards can best discharge their oversight responsibilities to en-sure that communications are transparent, accurate, and reliable, while balancing stakeholders’ de-mands for more information.

Dealing with the Board Dynamics

Composition and leadership are critical in supporting a board’s ability to carry out its responsi-bilities effectively. Boards need the right combination of skills and experience — and to be alert to the fact that the “right” combina-tion changes over time. They also need a leader who will ensure the board effectively discharges its responsibilities and a process that engages directors most produc-tively.

Insight!There need to discuss consider-

ations for board composition and leadership, effective board pro-cesses, procedures and systems, and training and education.



Employee Financial Wellness Whose Responsility?

BY Patrick [email protected]

The subject wellness among em-ployees has become a key item of competitiveness particularly in the service sector, where employees is the key asset delivering competitive advantage. A performing employee is an asset to the business. On the contrary, an employee whose per-formance is out of sync with the company expectations create the exact opposite effect to business.

More recently, financial wellness of employee has become of greater concern as vagaries of the economic environment have intensified with far reaching impacts on the welfare of the employee.

Following the September 2008 economic global slum down as a result the mortgage melt down in the united states, many employees found themselves jobless and with-out passive income to meet basic life needs.

Retrenchments resulting from unprecedented changes in the busi-ness environment continue to con-tribute more numbers to the jobless pool. The issue is not the loss jobs,

rather, it is the inability of these people to sustain their life standards because they nev-er invested for skill and passive income and therefore do not know what to with the sudden pool of retrenchment send off cash to con-tinue their income stream.

Pope John XXIII who reigned as pope between 1958 and 1963 once said that “if God made the shadow, it was to better emphasize the light.” This piece of wisdom is a fundamen-tal meaning to those who are hoping to review themselves regularly to improve their personal results, as it is to those who have suffered from the effect of their own yester years’ behaviours.

Increasingly financial wellness especially among employees has be-come a key contributor to employee superior or poor performance. Yet the subject of personal finance man-agement is an enigma of sorts to

busi-ness-

es and individuals

alike. On one hand, company ex-

ecutives tasked with staff develop-ment decisions are in a dilemma as to how far they should be involved with an employees personal finance resources management, which is really, an employee’s personal re-sponsibility.

On the other hand, a financially disorganised employee affects the business performance when they are unable to concentrate on their duties as a result of the effects of personal issues. Just like in the egg and chicken relationship – who came first?

Is there a case for employers to be concerned with the welfare of the employee on matters that should be deemed personal such as the man-

agement of the financial resources? I believe there is a strong case for

employers to be concerned with the total development needs of the em-ployee. That staff development pro-grams should help them make bet-ter use of the resources they labour for, so that the mutual benefit - work for employers results and financial benefits for employee can be sus-tainable in the long term. A happy employee improves the output for the employers benefit. An unhappy employee exerts and an uninten-tional sabotage. His or her mind is focused on solving personal problem which mean that the company work hours are used up doing less of the daily duties.

There is evidence that employees who manage their resources well especially through effective invest-ing and are therefore able to release themselves from some regular life pressures perform a lot better in the work place than their counterparts plagued by these pressures. They are better able to align their per-sonal goals with the business goals that provide the seed for achieving personal investment goals.

Whether the employee should take personal responsibility for de-veloping financial management capabilities is not a matter of ne-gotiation, but rather the foundation upon which the employers programs must then be laid. The primary re-sponsibility rest with the owner of the problem.

Considering that effective money management is first psychologi-cal before it transmutes into a skill, it behooves the employee to take personal interest in order to benefit from programs offered by the em-ployer to enhance self. However, an employee might not even be aware that they are actually lack financial management capability. Left alone, most employees who are unable to set personal life goals will wobble

their way into financial doom. This is the good reason for the employer involvement – to transfer goal clarity in their lives.

Would a new employee who has just joined gainful employment nat-urally know that they do not know how to manage their money?

Incidentally money looks easy to manage even for the most naive person. Notably first time salaries particularly to younger employees meet and sometimes even exceed their needs until such a time that they have expanded consumption significantly. Their inability to man-age money will manifests very late in life when personal demands for money to satisfy expanding psycho-logical needs has outstripped pre-sent regular income sources.

As they expand their households over time, they bring in additional child related expenses that were not provided for in the regular cash flow. This complicate financial life of many middle age employees, particularly those who desire to continue status quo outlook long after their finan-cial realities changed irreparably.

In my opinion, i see the em-ployer playing the role of the sun, that cast the shadow over a central pillar – per-sonal capability develop-ment. Naturally the length of the shadow depend on the angle at which the sun hit the object. It is shortest when the sun is right above the head. The employer and the employer are joined by deliverable results which depend on the employees capability.

The fact that most em-ployees come from families that are not rich is a reality. Such an employee has a natural extension of parenting influence of their world view of money and

wealth. That a such an employee will most likely start off as poor manag-ers of money is almost given, which is the reason employer intervention through transitional programs are valuable for their good beginning.

The employer has a responsibility to build capability in the new em-ployee for a mutual benefit because they stand to loose more. On the other hand, the employee must take personal responsibility for improving their financial management capabil-ity and aligning their goals to those of the employer. While the part-nership must produce a win –win mutual benefit to both parties, the employees attitude to self improve-ment is the missing link.

Patrick Wameyo is a personal fi-nance management expert focus-ing on financial education through training and coaching. Website: Pat-rick Wameyo.com



The newly elected IHRM Direc-tor, Bernard Ambasa, is the current Group Human Resources Manager for Sovereign Group Limited, which is an investment Group with portfolios spanning various strategic sectors of the Kenyan economy including but not limited to hospitality, manu-facturing, insurance, agriculture, me-dia, trade, horticulture, mining, real

estate, security etc. His key role in-volves developing and executing HR strategy in 13 subsidiary companies, offering consultancy and advisory services to business leaders in hu-man resources management and organizational development.

He has over 6 years experience in Health, Safety, Welfare and Human Resources Management. He has worked with Oserian Development Company as Housing and Welfare Officer, with Pollen Syngenta as Re-gional Safety, Health and Environ-mental Coordinator.

Mr. Ambasa holds a B.Ed (Hons)graduate from Kenyatta Univer-sity and a Master of Arts Degree in Psychology. He also holds a Higher Diploma in Human Resources Man-agement from the Institute of Hu-man Resource Management. He is both a Certified Trainer of Trainers

(TOT) and a Certified Safety, Health & Environmental Professional.

Registered as a Full Member of the Institute of Human Resource Management, Mr. Ambasa is a Re-source Person/Trainer in Working Environment in the same Institute. He is the Treasurer of HR Speakers Bureau of the Institute.

He has a passion to initiate and drive positive change, to develop and to empower people. He believes that service is the rent we pay for leaving on the earth.

His clarion call to all HR profes-sionals is that it behooves all of them to take IHRM to the next level. Thus, HR professionals must strive to put IHRM in the vanguard of most respected professional bodies in the region. This is doable if the HR fra-ternity so resolves.

Mr. Japheth Alande is one of the newly elected IHRM Directors. He has over 10 years HR experience. Currently, he is the Human Re-source & Administration Manager of Oceanview, Palmland & South Coast Pharmaceutical limited where he has worked for over two years. He previously worked with Lekma Investment Company, Rapok Contruction Ltd, Teach-ers Service Commission. He also

worked at Stellan Consult for six years. Mr. Alande is currently pursuing My Master of Science from JKUAT. He holds a Bachelor of Business Management from Moi University, a Higher National Diploma from Inoreero University and a Diploma in Human Resource Management obtained at the Kenya Institute of Management.

EVANS TOTO NYACHIENG’AHe has Eighteen (18) years experience in Human Resources Management and Administration, twelve (12) of which in a Senior Management position in the Public Sector. Am a Full member and Director, Institute of Human Resources Management (K).He has MBA (Human Resources Management) from Kenyatta

University and Bachelor of Arts Degree from the University of Nairobi (1992), KNEC Higher Diploma in Human Resources Management (1998), and attended several management courses.2010: Masters of Business Administration, Kenyatta University1992: Bachelor of Arts Degree, 2nd Class Honors, University of Nairobi.1998: Higher Diploma in Human Resources Management (KNEC) Railway Training Institute.1999: Windows 95’, Microsoft Office (Ms Word, Ms Excel,) Institute of Nuclear Science, University of Nairobi2000: Seminar on Human Resources Management and Development by ESAMI2003: Seminar on Industrial Relations and collective Bargaining by F K E.

2007: Seminar on Leadership Skills for Successful Performance Management2007: Seminar on Finance for Non-Finance Managers by PSM Financial Services2008: New Kenya Labor Laws Seminar, by Institute of HRM2009: Critical Skills Development programme for Top Managers by KIA2009: Performance Management course for senior public service practitioners.PROFESSIONAL AFFILIATION1998 to date: Full Member, Institute of Human Resources Management (K)2012 to Date: Director: Institute of Human Resources Management (K)2012 to Date: Member, Board of Governers, Gamba S.DA. Mixed Secondary School.

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