Management College of South Africa MBA Year 1 HRM Assignment

ASSIGNMENT COVER SHEET MANAGEMENTCOLLEGE OF SOUTHERN AFRICA (MANCOSA) ASSIGNMENT COVER SHEET

SURNAME

REEDOO

FIRSTNAME/S

SURAJ

STUDENT NUMBER

M401001379

MODULE NAME

HUMAN RESOURCE MANAGEMENT

ASSIGNMENT NUMBER

TUTORS NAME

Mrs S. BALLAH-BHEEKA

EXAMINATION VENUE

REDUIT, MAURITIUS

DATE SUBMITTED

15TH SEPTEMBER 2012

SUBMISSION ()

1ST SUBMISSION

RE-SUBMISSION

Management College of South Africa MBA Year 1 HRM Assignment

VERGER ROAD,

POSTAL ADDRESS

GOODLANDS,

MAURITIUS

E-MAIL

reedoosuraj@yahoo.com

WORK: 2668175

CONTACT NUMBERS

HOME: 2831532

MOBILE: 7966380

COURSE/INTAKE

MBA YEAR 1 JULY 2012

DECLARATION: I hereby declare that the assignment submitted is an original piece of work produced by myself.

SIGNATURE: S.R

DATE: 15TH SEPTEMBER 2012

Management College of South Africa MBA Year 1 HRM Assignment

Table of contents
Section 1. 1.1 1.1.1 1.1.2 1.1.3 1.1.4 1.1.5 1.1.6 1.1.7 1.1.8 1.1.9 1.1.10 1.1.11 1.2 Title of section Question 1 Introduction HRM practices at Netcare Limited for its strategic positioning Organisational Strategy The HR Function The Leadership of the Company Communication Diversity Management Corporate Social Responsibility Knowledge Management Talent Management and Employee Engagement Employee Training and Development Performance Management Rewards and Recognition Conclusion Question 2 Introduction Netcares training strategy and its effectiveness Education and Training Emergency and critical care Management and Leadership Pharmacy Training Nursing and Ancillilary Healthcare Training and Generic Skills Discussion Conclusion Question 3 Introduction
3

Page 1 2 2 2-3 3 3-4 4 4-5 5 5-6 6 6-7 7 7

2. 2.1 2.1.1 2.1.2 2.1.3 2.1.4 2.1.5 2.1.6 2.2 2.3

8 8 8-9 9 9-10 10 10-11 11 12 12

3.

13

Management College of South Africa MBA Year 1 HRM Assignment

3.1 3.1.1 3.1.2 3.1.3 3.1.4 3.1.5 3.1.6 3.1.7 3.1.8 3.1.9 3.2 3.3 3.4 3.5

The compensation and remuneration system at Netcare The use of a Base Pay Program Internal Equity External Equity Individual Equity Process Equity Performance Incentives Maximum Use of Financial Resources Compliance with Laws and Regulations Administrative Efficiency Pay Rates and Pay Increases Performance Appraisal Maintaining and Auditing a Compensation and Remuneration Plan Conclusion Question 4 Introduction Netcares career management or development planning system in retaining good performers and meeting employees development needs.

13 13-14 14 14-15 15 15 15 15-16 16 16 16 16-17 17 17

4. 4.1

18

18 18 19 19 19 20 20 20-21 21 22 22 23

4.1.1 4.1.2 4.1.3 4.1.4 4.1.5 4.1.6 4.1.7 4.1.8 4.1.9 4.2

Human Resources Netcare Education Netcare 911 School of Emergency and Critical Care Future training initiatives Management Development Programmes Talent Management Transitory jobs - a corporate reality Career planning largely an individuals responsibility Netcares HR Matching career aspiration with business needs Conclusion Bibliography

Management College of South Africa MBA Year 1 HRM Assignment

Question 1: To ensure a high probability of success in the implementation of strategic human resource management, the HRM function needs to be truly strategic in its orientation. Discuss how Netcare endeavours to this strategic position through their various HRM practices.

1. Introduction
Netcare Limited operates the largest private hospital, primary care and emergency medical services in South Africa. Netcare Limited has been certified as one of South Africa's Best Employers for 2012/13. Independent research into their employee offerings showed this company has outstanding working conditions and HRM practices.

Picture showing one of Netcare Hospitals in South Africa (source: NetcareLimited.aspx.htm)

5

Management College of South Africa MBA Year 1 HRM Assignment

SHRM integrates human resource considerations with other physical, financial, and technological resources in the setting of goals and solving complex organizational problems (Legnick-Hall & Legnick-Hall, 1988). To be successful Netcare Limited has to endeavour to its strategic position by valuing the best HRM Practices.

1.1 HRM practices at Netcare Limited for its strategic positioning

1.1.1 Organisational Strategy Human resources goals are attainable when strategically aligned with organisational goals. Netcare Limited is investing in time and resources to play an important role in provision of health care services. By providing training to reduce the skills shortage in health care sectors in South Africa, the company is moving forward towards its objectives. There is a culture of continuous improvement and development. Extensive induction and onboarding programme is being provided to attract and retain best employees.

In Netcare Limited, there are consultative forums which are organised at Board level concerning the companys objectives on a quarterly basis. The head office of the company was restructured so as to foster on a more efficient and caring culture.

1.1.2 The HR Function Effective employee relations are the key to any successful business. At Netcare limited, human resource personnel provide the occupational framework on which corporate executives base their long-term strategic vision. In the corporate setting, HR employees assist top leaders in various functions, including training and development, work evaluation and employee promotion.

Management College of South Africa MBA Year 1 HRM Assignment

To maintain the good functioning of the HR department and to align it with the overall business strategy, Netcare Limited is making improvement on the leadership culture of the company with the introduction of the service lerdership.

1.1.3 The Leadership of the Company The Netcare Limited is dedicated to helping individuals, organisations, communities, and the country understand and integrate responsible leadership at all levels. Its value discipline embraces core leadership strategy of building meaningful relationships with its medical professionals and staff to ensure that all its patients get the very best in patient care. The company fulfills this mission through coaching, training, education, consulting and research into both the nature of responsible leadership and the methods by which it is most effectively developed. Netcare Limited is providing service leadership program to facilitate communication, delegation and conflict resolution. The employees also feel and experience leaders to be living the company values. There is a high level of active involvement of the executive in talent management as a driver of employee engagement. To set good example, even the management has to wear name badges.

1.1.4 Communication Human resources have the challenging task of effectively communicating with the employees and personnel of an organisation. In the company, there is horizontal line of communication between employees and the top management team of the company. Survey is carried out among internal employees to know about the leadership culture. The service leadership approach is rooted on engaging the employees in the process. Feedback are taken from patients and even external people so as to build up action plans to solve employment issues. Even surveys were done among past internal staff to identify any
7

Management College of South Africa MBA Year 1 HRM Assignment

training needs. Training is tailor-made to best fit each individual manager with his job, and also to build more talented people. Netcare Limited sponsors their employees for superspecialised skills courses in order to promote continuous training and development.

1.1.5 Diversity Management Diversity management is the key to growth in todays fiercely competitive global industries. Netcare Liimited is making partnership with the government to so as to support national health care services. More training is provided for emotional intelligence. The

dynamic environment at the company is providing opportunities for individual growth, development and mobility. Several staffers are being posted to the companys foreign operations like in UK. To meet requirements of each department, workshops on awareness cultural diversity is organised. The company has embraced diversity by the way it thinks acts and innovates. Netcare Limited is set to respond to all perspectives regarding the future of diversity and some of the new best practices that will allow diversity to play a more strategic role in cultivating sustainable business growth.

1.1.6 Corporate Social Responsibility The goal of Netcare Limited is to embrace responsibility for the company's actions and encourage a positive impact through its activities. Netcare Limited understands its responsibility towards an equitable sharing of health care resources. The forming of partnership with the government is another step towards the companys vision in promoting the health sector in South Africa. The company is involved in a number of CSI projects. In association with other partners, the company performs operations for cleft palates and cochlear implants for disadvantaged children. It also sponsors the Walter Sisulu Paediatric Cardiac Centre. More than R12 million has been given in care to indigent community

Management College of South Africa MBA Year 1 HRM Assignment

members. Comparred to other companies who support their own private causes, Netcare Limited participates in Habitat for Humanity. Both the company and the employees are responding to social development imperatives, for instance, their positive response and commitment in 2010 public healthcare workerss strike. The company is also making an effort to employ more people with disabilities.

1.1.7 Knowledge Management In recent years, Knowledge Management has emerged as one of the prime concerns of human resource Management System. At Netcare Limited, Knowledge Management is a system by which business strategies are developed to create results. Employees are

engaged in the process and their ideas and views are considered to make the job easier. Intervention which includes intrapersonal development, based on psychological assessment, is used. The company has engaged external consultants to deliver programme in emotional intelligence to all the employees. Raw data from employees is used to formulate

improvement action plan, which help in executive development plan. This programme further enhances the selection of mentors on the basis of assessment and will be expanded to more grades of employees.

1.1.8 Talent Management and Employee Engagement Netcare Limited has developed a culture of continuous improvement and development. The training given is designed to provide a high pool of talented people and opportunities for career growth in the company. The remuneration has been benchmarked at the median with above average salaries paid for scarce talent, together with other retention measures and specialist allowances. Other packages are being offered like guaranteed 13th cheque,

medical-scheme and Carer of the Month. An induction and onboarding programme is

Management College of South Africa MBA Year 1 HRM Assignment

provided to attract and retain best talented people. To encourage employee engagement, Netcare Limited ensures that each employee is fulfilling his role. The company has maintained a flexible structure for better flow of communication. Employees participation is valued and they are empowered to take

decisions. Surveys are carried out to get valuable information for any need for change and training.

1.1.9 Employee Training and Development At Netcare Limited, training needs have been identified and are being provided to have:

Increased job satisfaction and morale among employees Increased employee motivation for continuous expansion Increased efficiencies in processes, resulting in financial gain Increased capacity to adopt new technologies and methods Increased innovation in strategies and service Reduced employee turnover Enhanced company image Risk management, for example, by providing diversity training

1.1.10 Performance Management Performance expectations are the basis for appraising employee performance. At Netcare Limited, feedback is a necessary tool to assess and review performance of all employees. Through the recognition and reward system, everyone is encouraged to improve their performance. Staff at mid-management level participates in incentive scheme based on performance. To boost up the managers, NetRewards chequebook is awarded. In the quest for equitable HR policy, mentors are selected based on their assessment and not
10

Management College of South Africa MBA Year 1 HRM Assignment

seniority. The standards set is realistic, that is, attainable by any qualified, competent, and fully trained employee. This HRM policy has been well implemented by the company, although there is still room for more improvement.

1.1.11 Rewards and Recognition By recognising and rewarding employees for a job well done, this builds loyalty and morale in the organisation. The reward and recognition at the Netcare Limited includes Carer of the Month, individual growth and development, mentors selection based on assessment, retention measures, specialist allowances, guaranteed 13th cheque and other fringe benefits. The reward and recognition has a major impact on employees and their performance, where the company benefits ultimately.

1.2 Conclusion
As global business competition shifts from efficiency to innovation and from enlargement of scale to creation of value, the Netcare Limiteds management needs to be oriented towards the strategic use of human resources through various HRM practices. Strategic human resources management practices enhance employee productivity and the ability of agencies to achieve their mission. Integrating the use of personnel practices into the strategic planning process will enable the company to better achieve its goals and objectives. Combining human resource practices, all with a focus on the achievement of organisational goals and objectives, can have a substantial effect on the ultimate success of the organisation. To manage future operations effectively, it is essential that the company continue to produce "business leaders" and "innovators" through SHRM Approach.

11

Management College of South Africa MBA Year 1 HRM Assignment

Question 2: Analyse Netcares high leverage training strategy and its effectiveness in contributing to and achieving their organizational objectives.

2. Introduction
Training is often identified as the solution to a companys ill. Training is deemed necessary only when it has been determined that training is required to ensure employees will meet performance expectations, when the benefits of training are greater than the consequences of not training, and when training is the most cost-effective solution to the problem. Netcare training strategy determines intermediate to long-term training priorities, objectives and direction. The training strategy aligns with the companys overall objectives and strategies.

2.1 Netcares training strategy and its effectiveness

2.1.1 Education and Training Netcare is engaged in continuously developing the skills of its people through targeted training initiatives at every level of its business. The company is also active in the broader healthcare sector in increasing the number of skilled healthcare and related professionals. The training programmes are well-respected and provide a strong foundation for valued partnerships with public and private sector bodies such as academic hospitals, universities and government. The well-established education division operates five campuses across South Africa and coordinates the delivery of a broad range of programmes in the fields of nursing and ancillary healthcare, general skills training and leadership and management development. By contributing to the number of skilled individuals in the healthcare sector, it is having a positive impact in alleviating ongoing skills shortages in nursing and related fields in the broader healthcare industry.

12

Management College of South Africa MBA Year 1 HRM Assignment

2.1.2 Emergency and critical care

The Netcare 911 School of Emergency and Critical Care is one of the largest private Emergency Medical Services (EMS) training facilities in Africa. A variety of short courses, undergraduate and post-graduate programmes are offered to members of the general public and healthcare professionals, at basic, intermediate and advanced levels. This will help to achieve both the short term and long term objectives of the company and the country.

2.1.3 Management and Leadership Todays business leaders must not only have the knowledge, technical skills and management competencies required to be successful in their roles, but must also be able to achieve a balance between technical skills and business skills. In the South African healthcare sector, modern healthcare managers and leaders have to tackle a number of key challenges for the successful delivery of healthcare solutions which include:

The demographic profile of diseases, particularly HIV/Aids. A consumer-driven market in which service delivery is seen as a key driver in quality. The general skills shortage. Escalating healthcare costs. The prevailing inequity in the distribution and location of funds and facilities, especially differences between urban and rural allocation.

13

Management College of South Africa MBA Year 1 HRM Assignment

Changing medical delivery models and the ongoing revolution in medical technology which continually introduces new professions.

These challenges directly inform the learning initiatives offered to Netcare employees, either through internal development programmes or externally facilitated courses. The Management & Leadership faculty strives to develop business leadership in healthcare through innovative and integrated learning models, to equip managers and leaders with the knowledge, skills and competencies to act on economic and business imperatives. To this end, Netcare Limited has created management development programmes customised to the healthcare environment. The consulting teams of business experts are able to rapidly customise programmes for the specific needs of other organisations. The customers include other private healthcare groups and the government / public healthcare sector.

2.1.4 Pharmacy Training The pharmacy profession touches every aspect of healthcare, with opportunities in many different sectors. It requires a commitment to high standards of competence, professionalism and co-operation, in order to best serve the interests of patients and communities. The company offers posts to pharmacists country-wide. Netcare runs a well-respected internship programme and most of the facilities are registered for training. Interns may be invited to

participate in ward rounds or to view various surgical procedures, dependent on the facility in which they are training.

2.1.5 Nursing and Ancillilary Healthcare Netcare's Nursing & Ancillary Healthcare faculty strives to be a market leader in healthcare and healthcare-related education and training. Training nurses, technicians and related personnel increases the availability of people with these critical skills for the organisation and the broader healthcare industry. A dynamic team of experienced instructors, clinical facilitators and

academics offer training in centres across South Africa. Netcare Limited is also engaged in a

14

Management College of South Africa MBA Year 1 HRM Assignment

number of initiatives with public hospitals and other private providers to support practical training placements of learners. During their practical placement, learners gain workplace and clinical experience as required by the programme they are enrolled in, under the guidance of clinical facilitators and experienced nursing professionals. The faculty offers both basic and post-basic nursing programmes, and also offers a number of three and five day programmes that focus on specific areas of care, including HIV/Aids and Infection Control Principles.

Ancillary healthcare professions have been established as an innovative solution to address the nursing skills shortage in South Africa. It involves moving non-nursing functions from nursing staff to new ancillary healthcare professionals. Ancillary healthcare is already an established profession in the United Kingdom and United States of America.

2.1.6 Training and Generic Skills Netcare Educations Training and Generic Skills faculty strives to deliver solutions that meet the broad skills needs of our employees and keeps them at the forefront of best practice in the sector. There is the use of both internal and external training providers to ensure the most appropriate training interventions. The development priorities and training interventions include:

Diversity management Finance for non-financial staff HIV/Aids (clinical and general courses) Industrial relations (discipline and dismissals, managing poor performance and incapacity, initiating disciplinary enquiries, chairing disciplinary enquiries)

Continued professional development (updating professional skills and attaining high standards of professional competence and ethical behaviour)

Research (encouraging and facilitating research activities including the governance of clinical trials)

Customer centricity (including a customer relationship management programme for management)

15

Management College of South Africa MBA Year 1 HRM Assignment

2.2 Discussion
Netcare is actively involved in developing workplace skills plans in conjunction with employees to ensure that the customers receive the best service and care possible. The training has a positive impact of the training on the employee's performance, as part of a regular appraisal process. Qualitative improvements may be just as important. This could include higher quality of services, better teamwork, fewer customer complaints and greater innovation within youre the company.

The employees feedback demonstrated:

the training was relevant to their job and their level of expertise that employees will put learning into action what worked and what didn't what could be improved

2.3 Conclusion
A successful strategy for evaluating the effectiveness of Netcare Limited training requires careful analysis of the job tasks for which the training will take place. It is important to carefully prioritise the evaluation so that its primary focus is on the healthcare tasks that are most frequent, critical and difficult to learn. Because the training program as a whole is effective only if it results in good healthcare research performance, it is important to measure actual performance of the healthcare as well as trainee competence and underlying knowledge. It is recommended using a combination of measures, which will provide the most valid and reliable data on aspects of performance that are most important at an acceptable cost. A well-designed and executed evaluation will yield more benefits.

16

Management College of South Africa MBA Year 1 HRM Assignment

Question 3: Discuss how the compensation and remuneration system at Netcare promotes the organisational culture and employee behaviours necessary for the achievement of the organisations strategic goal.

3. Introduction
All organisations have a compensation plan, written or unwritten, formal or informal. For some organisations, the purpose of that plan may be merely to meet compliance requirements. For others, the goal of the compensation plan may be to attract qualified employees, to retain those employees, and to motivate employees to direct their efforts towards achieving the goals of the organization. Organisational culture refers to the beliefs and values that have existed in an organisation for a long time, and to the beliefs of the staff and the foreseen value of their work that will influence their attitudes and behavior. Administrators usually adjust their leadership behaviour to accomplish the mission of the organisation, and this could influence the employees' job satisfaction. It is therefore essential to understand the relationship between organisational culture, leadership behavior and job satisfaction of employees through a good compensation and remuneration system so as to work towards achievement of the organisations strategic goal.

3.1 The compensation and remuneration system at Netcare 3.1.1 The use of a Base Pay Program
Before delving into the details of how actually to pay people, an organisation must consider the following factors that impact a base pay program:

* internal equity.
17

Management College of South Africa MBA Year 1 HRM Assignment

* external equity (or competitiveness), * individual equity, * process equity, * performance or productivity incentives, * maximum use of financial resources, * compliance with laws and regulations, and * administrative efficiency.

All of these objectives must be balanced in the development of a sound base pay program. As these points are being reviewed, the Netcare Limited caters for employees remuneration which is benchmarked at median. This helps to achieve current and desired practices of the organisation.

3.1.2 Internal Equity Internal equity deals with the perceived worth of a job relative to other jobs in the organisation. All employees compare their jobs to other jobs within the organisation. Generally, they consider skill, effort, responsibility and working conditions in this comparison in order to determine the value of their jobs relative to other jobs. Likewise, Netcare Limited determines the "worth" or "value" of one job in relation other jobs for the purpose of pay programs. Maintaining appropriate pay relative to value or worth is achieving internal equity.

3.1.3 External Equity External equity deals with the issue of market rates for jobs. Netcare Limited's goals are being accomplished as it pays what is necessary to attract, retain and motivate a sufficient number of qualified employees. The company makes use of the base pay program to provide a competitive remuneration system. Depending on the individual employee, serious consideration are given to employee benefits, job security, physical work environment, commuting distance, opportunity for advancement and the employee relations practices of the organisation in determining external equity issues. A frequent consideration is also given to lifestyle and quality of life. The employee's skills are valued more highly in the different type of jobs performed, for instance, the

18

Management College of South Africa MBA Year 1 HRM Assignment

provision of specialist allowances. The employees feel they are being treated equitably.

3.1.4 Individual Equity Individual equity deals with how individuals perceive how they are being paid relative to other individuals within the organisation and perhaps within the same position. At Netcare Limited, this focus of individual equity is on the merits of the person filling a job, as opposed to the job itself. Hence employees get to feel that the rewards they receive for how they do their work are comparable to the rewards received by others for the same amount of effort or output, all other factors being equal.

3.1.5 Process Equity The employees perceive the fairness in the administration of the compensation system. Process equity, in the perceptions of employees, is strongly influenced by the openness of the system, communication of the system to employees, participation in design or administration of the system and a grievance appeal procedure. Employees are empowered and their participations are valued.

3.1.6 Performance Incentives A significant element of a base pay program is to encourage higher or increased levels of employee performance. At the Netcare Limited, the pay systems need has been designed to improve organisational performance.

3.1.7 Maximum Use of Financial Resources Since an organisation does not have unlimited financial resources, the base pay program has been designed to maximize the value to the organisation with minimum use of these limited resources. In order to accomplish this, the pay programs have a variety of tools such as pay range maximums, incentive scheme based on the units performance, guaranteed 13th cheque,
19

Management College of South Africa MBA Year 1 HRM Assignment

NetRewards chequebook and other attractive packages which help to accomplish this objective.

3.1.8 Compliance with Laws and Regulations While not the primary objective of a pay program, one of the objectives of a pay program in the organization has been to keep in compliance with various state and federal laws and regulations of South Africa.

3.1.9 Administrative Efficiency While catering for financial resources in the organisation, there is a pay program that is easy to administer, flexible, and cost-effective. There is a flexible approach to develop appropriate rates of pay for jobs. There is a pay structure that accomplishes the organisation's objectives with regards to a pay program, organisational culture and employee behaviours and reflects the organisation's philosophy and value of Care, Dignity, Participation and Passion.

3.2 Pay Rates and Pay Increases

Creating a pay structure is not the final step in the creation of a compensation plan. Netcare Limited is putting effort to administer and maintain an attractive compensation and remuneration plan. In addition, the organisation has developed policies and procedures that will implement the results of these decisions in a consistent manner.

3.3 Performance Appraisal

Netcare Limited has implemented the process to pay for performance, the compensation plan includes a well-designed and properly administered performance appraisal system in order to be complete. Many types of survey are carried out to measure employees performance, like internal and external surveys. Employees performance is also appraised based output and results. The appraisal system considers job-related behaviours. Supervisors and managers are trained in the performance
20

Management College of South Africa MBA Year 1 HRM Assignment

appraisal process. Corrective measures are undertaken to review process and performance. It is evident that the criteria used to measure performance are objective and qualitative. For instance, mentors are selected based on their assessments rather than seniority.

3.4 Maintaining and Auditing a Compensation and Remuneration Plan

Changes in the external market or internally within the organisation can cause one or more parts of a compensation plan to become outdated. In order to face such challenges, actions have been taken to create a compensation plan to build in mechanisms that facilitate change when necessary and maintain control on a regular basis. There is competition for employees to maintain the organisations culture, bring necessary employees bahaviours and regular review of the pay structure including pay ranges and pay increase budgets.

3.6 Conclusion
Netcare Limited has set the right approach for a good compensation and remuneration system to promote the organisational culture and employee behaviours necessary for the achievement of the organisations strategic goal. Success of a compensation and remuneration plan includes an overall pay philosophy as well as the policies and procedures that govern operation of the plan. Because of limited resources, Netcare Limiteds excessive time and money should not be expended in pay program administration. The costs of administration should be balanced against achieving the strategic objectives of the pay and remuneration plan, that is, adopt a culture with the right employees behaviours and a continuous total quality management.

21

Management College of South Africa MBA Year 1 HRM Assignment

Question 4: Analyse Netcares career management or development planning system in retaining good performers and meeting employees development needs.

4. Introduction
Keeping high-performing employees has become a top priority for todays organisations. Managers, supervisors, and team leaders play the greatest role in employee satisfaction or dissatisfaction. Todays employees want challenging and meaningful work, opportunities to learn and grow, the sense of being part of a group, and a good boss. Talent management and employees development needs are critical factors in the success of an organisation. In order to be successful, Netcare Limited has to cater for a good career management system to retain its good performers and to meet employees development needs.

4.1 Netcares career management or development planning system in retaining good performers and meeting employees development needs.

4.1.1 Human Resources Netcare provides all permanent employees with access to human resource development programmes, through both in-house education providers and outsourced agencies. These HRD programmes are co-ordinated by Netcare Education Division, which has as its key objective the training, education and development of all Netcare employees. Through organised learning interventions, employees are able to improve job performance and individual growth opportunities. In this way, the organisation is able to ensure fair and equitable access to career planning, succession planning and talent management.

22

Management College of South Africa MBA Year 1 HRM Assignment

4.1.2 Netcare Education All courses offered through Netcare Education are driven by a vision to be the market leader in healthcare and medical-related education and training. This vision is underpinned by the strategic imperative of continued nursing, medical technician and other staff training in Netcare, which have a positive impact on the ongoing shortage of skilled personnel in nursing and related categories in the healthcare industry at large in South Africa. In addition to standard training courses that cover the basic and post-basic programmes, Netcare Education has also introduced a number of three- and five-day short programmes that focus on specific areas of care such as HIV/AIDS and Infection Control Principles. A number of internal processes have been implemented at Netcare Education that will broaden the scope of the operation. These include an initiative to market the nursing profession as a caring and rewarding profession and to reposition the nursing profession in order to make it attractive again.

4.1.3 Netcare 911 School of Emergency and Critical Care The Netcare 911 School of Emergency and Critical Care is one of the largest private Emergency Medical Services training facilities in South Africa. A variety of short courses, undergraduate and post-graduate programmes are offered to members of the general public and healthcare professionals, at basic, intermediate and advanced levels so as to increase skills and build up professional qualifications for better career prospects. The Netcares dynamic environment provides career prospects in terms of individual development and mobility.

4.1.4 Future training initiatives Netcare Education Division is processing the planning of a much wider Corporate Institute for Healthcare Leadership to address the ongoing need for training, education, development and Continued Professional Development in the healthcare industry. This will promote employees development and help to retain talented employees.
23

Management College of South Africa MBA Year 1 HRM Assignment

4.1.5 Management Development Programmes The Netcare Education Division is actively developing further management capacity, firstly through internal development of management programmes, and secondly, in co-operation with selected universities and business schools.

Significant investment is being made to address the critical need for managers and leaders at all levels of the organisation.

4.1.6 Talent Management Netcare has developed and implemented a Talent Management Strategy that aims to identify talent below management level, and then accelerate the advancement of employees. Emphasis is placed on human development initiatives and also cares for female employees. Currently, some 644 employees (40% black, 80% women) are benefiting from this programme. A mentorship programme has also been launched, which is based on a modern-day leadership model applicable to the Netcare context. This programme ensures the transfer of skills from mentors to their mentees, thus helping to develop the latter as tomorrows leaders. Employees are more motivated as mentors are selected based on their assessment and not seniority.

4.1.7 Transitory jobs - a corporate reality Today with intense competition everywhere, coupled with economic changes sweeping the world, companies are aggressively pursuing the strategies for acquisition, divestment, downsizing, outsourcing, and synergy through alliances. It is in context of this corporate reality of transitory jobs, that career planning and development assume more significance.

In order to equip people deal with this reality, the Netcare Limited corporate focus is shifting from lifelong employment to lifelong employability. The organisation supports the individuals in planning their careers by providing personalised information on the direction the business is
24

Management College of South Africa MBA Year 1 HRM Assignment

headed towards, setting the career expectation of people in the right perspective and responding to career initiatives of individuals by providing tailor-made training courses.

4.1.8 Career planning largely an individuals responsibility Netcare Limited supports an individuals career aspirations in line with its business goals. A job is not merely a means of earning money, it is viewed by the individuals as an opportunity for learning, so that when he is doing a job to fulfill his responsibility for the company, he is also strengthening his skills required to develop his career. Career planning and pursuing the desired career is a lifelong process for an individual, where he continuously learns about his purpose, personality, skills and interests. The process of career management by an individual involves rigour and focus at each step.

Though, the onus of managing one's career lies with the individual, Netcares thrust of HR is on designing great careers from the jobs that they offer to attract and retain the best of the talent available to such an extent that people find themselves in the "right job" and view these jobs as stepping stones to great careers.

25

Management College of South Africa MBA Year 1 HRM Assignment

4.1.9 Netcares HR Matching career aspiration with business needs Employee loyalty to the company is higher when the job fulfills intrinsic needs and personal goals of the employees. By assisting an individual in planning his career and providing opportunities for career development, Netcare Limited ensures higher loyalty and productivity from employees. HR professionals in Netcare Limited are maintaining a balance process to match and support career expectation of high performers with the organisational requirements.

4.2 Conclusion
Retaining talent is very important in any organisation. Keeping the top performers and preventing the best employees from looking for opportunities with other competitors is much cheaper than constantly recruiting new ones. Netcare Limited has in place a good career management planning system to retain good performers and meeting employees development needs. However this trend has to be consistently maintained and improved so to manage staff retention and development needs.

26

Management College of South Africa MBA Year 1 HRM Assignment

Bibliography
Armstrong, M. (2006). Human Resource Management Practice. (10th ed.). London: Kogan Page.

Emerald Group Publishing Limited, ISSN. Vol. 7. No. 2. Pp. 17-22.

Mathis, R.L. and Jackson, J.H. (2005). Human Resource Management. Eleventh Edition. USA: Thomson

The McKinsey Quarterly (2008). No. 1. Making Talent a Strategic Priority

Maslow, A.H. (1943). A theory of human motivation. Psychological Review, 50(4), pp. 370396

Phillips, J.J. and Conell, A.O. (2003). Managing employee retention: A strategic Accountability Approach. USA. Butterworth

Websites:

http://www.netcareLimited.aspx.htm http://www.education-and-training-htm http://www.emergency-and-critical-care.htm http://www.pharmacy-training.htm http://www.nursing-and-ancillary-healthcare.htm http://www.training-and-generic-skills.htm http://www.clinical-governance.htm http://www.hr4.php.htm http://www.beyondoutsourcing.co.za

http://www.HR.com 27