HRM Ppts 466 Slides

1 The environment
for HR
CHAPTER 1:
Finding & placing Foundation & challenges for

qualified workers HR
CHAPTER 2:
Assessing & developing Information technology for HR
qualified workers
CHAPTER 3:
Managing diversity &
Labour relations
regulatory challenges
Emerging HR
practices
Chapter 1 -
The foundation
and challenges
of Human
Resource
Management
Chapter outcomes
• Evaluate the development of human resource
management (HRM)
• Distinguish the strategic approach to human
resources from the traditional approach to HRM
• Summarise the key HRM functions
• Explain the roles of the HR Department
• Identify eight challenges/issues facing HR today
• Explain the trends relevant to the growing
importance for HRM
Human resources: Past &
present
• Scientific management
• Human relations
• The HR approach
Strategic HR
• Strategic management – making
those decisions that define the overall
mission & objectives of the
organisation, determining the most
effective utilisation of its resources and
crafting and executing the strategy in
ways that produce the intended results
Strategic HR (continued)
• Business strategy – management’s game plan
• SHRM – address a wide variety of people issues
relevant to business strategy
• Process is led & coordinated by top
management
Strategic vs traditional
HRM
Dimensions Strategic HRM Traditional HRM
• Planning and • Participates in formulating • Is involved in
strategy overall organisational strategic operational planning
formulation plan and aligning HR functions only
with company strategy
• Authority • Has high status and authority

for top HR officer (e.g. vice • Has medium status
president for HR) and authority (e.g. HR
director)
• Scope • Is concerned with all
managers and employees • Is concerned primarily
with hourly,
operational and
clerical employees
Strategic vs traditional HRM
(continued)
Dimensions Strategic HRM Traditional HRM
• Decision • Is involved in making • Makes operational

making strategic decisions decisions only
• Integration • Is fully integrated with other • Has moderate to small

organisational functions e.g. integration with other
marketing, finance, organisational functions
production
• Does not coordinate all
• Coordination • Coordinates all HRM HR functions
activities
A model of strategic HRM
External environment
Competition,
government
regulation, Staffing
technology, Employee Laws
market trends, regulating
separation
economic employment Training
HR strategy
Corporate Business unit
strategy strategy HR planning, Performance
design of jobs & management
work systems,
what workers do,
Culture, what workers
structure, politics, HRIS Compensation
need, how jobs
employee skills, interface with
past strategy others
Labour
Internal environment relations
HR functions
• Assigned exclusively to HR:
– Compensation and benefits issues
– AA & EE
– JA programmes
– Pre-employment testing
– Attitude surveys
HR activities (jointly with
other departments)
• JA & JD
• Recruitment and selection
• Appraisal, training and development
and career management
• Compensation and health
• Labour relations
• HRIS & problem-solving
HR department roles
• Does the HR function affect the success
of an organisation?
• HR policies
• Critical policy issues
– Employee influence
– Personnel flow
– Reward system
– Work systems
Communication
• Downward • Upward
– New employee – Suggestions
orientation programmes
– Bulletin boards
– Complaint
– Communication
meetings procedures
– Newsletters – Electronic mail
– Employee handbooks – Attitude surveys
– Open-door meetings
HR department roles
(continued)
• Advice & services
• Control functions
– Collection & analysis of hiring, selection,
placement & promotion
– Analysis of performance appraisal records
– Analysis of statistics on absenteeism,
grievances and accidents
The structure of the HR
department
• Clerical, professional, managerial
staff
• Responsibilities for HR functions
– Does not only reside with HR
– All managers at all levels share in the
responsibility
Current issues &
challenges
• Worker productivity
• Quality improvement
• Downsizing, delayering & decruiting
• The changing workforce
• Global economy
• The impact of government
• Quality of working life
• Technology and training
Challenges facing HR
managers in 21st century
External Internal
macro macro
environment environment
Critical
people
issues
External Internal
micro micro
environment environment
• HR career opportunities
• Professionalisation of HRM
– Ethics and HRM
Summary
• Strategic HR activities address a broad range of issues
relevant to the successful formulation and implementation
of company plans.
• The management of people has seen three distinct
approaches since the turn of the last century: scientific
management, human relations and the HR approach. The
trend has been toward the HR approach, whereby two
complementary goals are sought: increased organisational
effectiveness and the satisfaction of individual employee
needs. HR policies and programmes strive to achieve both
goals.
• A number of critical issues face HR managers and
administrators in South Africa today. Improving worker
productivity through HR programmes, policies and
techniques remains a challenge. Increasing the quality of
working life (QWL) is a goal of many organisations, and
programmes such as the redesign of jobs have been
implemented to enhance QWL.
• Hiring and motivating today's changing workforce is a major
HR challenge. Innovative HR programmes must meet the
needs of a diverse labour force while enabling the company
to compete successfully in a global economy.
Summary
• Although the HR programmes of different organisations will
vary, the HR departments of most organisations have these
common responsibilities: job design and analysis;
recruitment and selection; induction and internal staffing;
appraisal, training and development; compensation; and
labour relations.
• HR managers and administrators play a number of roles in
achieving effective HR management. These include creating
HR policies, offering advice to line managers, providing
services (e.g. recruiting, training, and research), and
controlling activities to ensure that employment legislation
and HR policies are being followed. Also, it is usually HR's
responsibility to design and maintain effective
communication flows.
• Jobs in the HR department include clerical (support),
professional and managerial positions.
• Free trade and globalisation are putting most firms in fiercely
competitive markets where success depends on the quality
of HR management.
• Work itself will be redefined in the future; more high-order
thinking, constant learning and flexibility.
Chapter 2 –
Information
Technology for
Human
Resources
Chapter outcomes
• Describe the Internet and identify the two functional
categories of information available on the Internet that
are most useful to HR managers
• Define a human resource information system (HRIS)
• Discuss the structural design of an HRIS
• Distinguish between the different types of HRISs
• Discuss some of the modules of an HRIS database
• Discuss the steps to be followed in the development
and implementation of an HRIS
• Discuss five critical standards that must be met if
information provided by an HRIS is to be viewed as
quality information
• List several things HR can do to foster data security
throughout the organisation
HR and the Internet
• Conversational resources
• Reference sources
• Intranets – organisational network that
operates over the Internet connecting people to
people and people to knowledge and
information
• Extranets – an Internet-linked network that
allows employees access to information
provided by external entities
Human Resource Information
System (HRIS)
• Nature of an HRIS
Benefits of an HRIS
• Reduces errors
• Strategic tool
• Provide valuable information to
decision makers
Components of an HRIS
• Hardware
• Software
• Data
• Procedures and users
Functional components of an
HRIS
Input Transformation Output
Employee information Software Reports

Structural design of HRISs
• Concentrated HRIS
• Distributed HRIS
• Independent HRIS
• Hybrid approach
Types of HRISs
• EDP (electronic data processing) –
automated processing of routine
information
• MIS (management information
system) – integration and planning of
the information system’s function
• DSS (decision support system) –
decisions made at a higher level in the
organisation
Reasons for the slow
introduction of computer-
based systems in HR
departments
• Lack of support by top management
• Satisfaction with the status quo
• Defensiveness about revealing HR
operations
• Lack of HRIS knowledge and skills by
HR managers
Fully developed HRIS
Succession
database
Career
Training &
development
planning development &
planning Affirmative action
Skills inventory
Personnel module
Corporate, Bio-
HR planning & DATABASE graphical, Histo-
forecasting rical, Company/ HR
policies
Compensation
administration Position control
• Benefits Applicant
Future use Health & safety
• Health claims tracking
Applications of the HRIS
database modules
• Applicant-tracking module
• T&D module
• Position control module
• Wage & salary administration module
• HRP module
• Skills inventory module
• Succession planning module
• Basic personnel module
Why do HRISs fail?
• Lack of management commitment & resources and inadequate
numbers of personnel are made available
• Project team not assigned for the duration of the project
• Project is set up for failure (political intrigue, conflict & hidden
agendas)
• Incorrect decisions are made – poorly written needs-analysis reports
• Key personnel are not included in the project team
• Clients are not surveyed/interviewed to determine their needs
Development,
implementation &
maintenance of an HRIS
database
• Phase I – Needs analysis
• Phase II – Design & development
• Phase III – Implementation &
maintenance
Securing the integrity of HR
data
• Biggest risk
• Keeping records unaltered
• Controlling access
• Security technology
– Information to be accessed
– Type of access
Summary
• Automation came late to the HR department. When it did, the
system put in place resembled payroll more than personnel.
• The appearance of the personal computer (PC), perhaps
more than any other single event, shifted information control
away from the data processing/MIS department.
• The computer is becoming an integral part of the HR
department. As a tool, it has moved beyond producing simple
reports to helping HR managers make complex decisions.
Human resource information systems (HRISs) are making this
possible. As a whole, an HRIS creates more opportunities for
the HR profession to influence the company.
• A typical HRIS is composed of a database, computer software
and hardware.
Summary
• There has been an explosion of PC hardware
improvements and software offerings that greatly
expand the possibilities of HRISs. Small employers can
now benefit by getting the same results on PCs and
minicomputers that could only be obtained using
mainframes a few years ago.
• The choice between mainframes, minicomputers and
PCs is complicated by the blurring of distinctions
between them. Technological improvements are
levelling the playing field between competitive
technologies, and a likely scenario is that a medium-
sized to larger employer will employ a combination of
networked computer systems.
• Improvements in computer technology allow more tasks
to be accomplished than ever before. Very sophisticated
analyses can be performed on an ad hoc basis. Even PC
programs allow complicated 'what if' questions to be
answered.
Summary
• Modern HRISs place HR professionals in a better position to play a more
integral role in the strategic management of today's organisation.
Computer technology, which first seemed to divide departments, now
serves to bring them closer together as they share information, and more
of it, to implement the business strategy.
• For an HRIS to be effective, users must be properly trained to use it, and it
must be used by those whom it is intended to serve.
• HRIS concerns about he privacy of information that the database contains
are very important. Proper care must be taken to restrict access to the
system to those individuals who have a legitimate need for its information.
Chapter 3 –
Managing
diversity and
regulatory
challenges
Chapter outcomes
• Discuss the composition of the South African
workforce
• Define diversity management, and discuss why it is
important
• Distinguish between the concepts affirmative action
and diversity management
• Identify the primary principles of the South African
Constitution and other related employment legislation
regarding discrimination
• Discuss the two types of sexual harassment and how
employers should respond to complaints
India’s diverse population
• Ethnic groups
• Women
• Younger workers
• Disabilities
• Sexual/affectional orientation
Managing diversity
• A planned systematic and comprehensive
managerial process for developing an
organisational environment in which all
employees, with their similarities and
differences, can contribute to the strategic
and competitive advantage of the
organisation, and where no‑one is excluded
on the basis of factors unrelated to
productivity
Managing diversity
• What is diversity? Recognition of the groups
of people who share such common traits
– Primary dimensions
– Secondary dimensions
• Stereotypes & prejudices
– Stereotype – a fixed, distorted generalisation about
the members of a group: it is not generalisation
– Prejudice – processing our stereotypes in such a way
to reinforce your own sense of superiority to
members of that group
Managing diversity
(continued)
• Assimilation
• Valuing diversity
• Diversity programmes
• Diversity awareness training
Managing diversity
(continued)
• Problems with diversity training
• Language sensitivity
• The multicultural organisation
– How can an organisation truly become a
multicultural organisation?
Step 1 Step 2 Step 3

Unfreezing Moving Refreezing
Response to diversity:
Government legislation
• LRA 66 of 1995
• The Constitution 108 of 1996
• BCEA 75 of 1997
• EEA 55 of 1998
• Promotion of equality and prevention
of unfair discrimination act 4 of 2000
Sexual harassment
• Defining sexual harassment
• Quid pro quo harassment
• Hostile work environment harassment
• Measuring & researching sexual
harassment
• Different forms of sexual harassment
• HR’s responsibility
Summary
• The rapid diversification of the South African workforce is
changing the way in which managers succeed in
administrating organisations. They must be able to harness
the energies, talents and differences of a more diversified
workforce. This requires an ability to recognise value and
to manage individuals from diverse cultures and
perspectives.
• Diversity‑awareness training and diversity programmes
strive to increase employees' recognition of the value of
everyone in the workplace. Some programmes, however,
have caused problems among certain employees. To
achieve diversity, HR managers must: (1) hire a diverse
workforce; (2) enforce policies and laws on discrimination;
and (3) learn to value and manage employees' differences.
• Affirmative action programmes by employers seek to
determine areas of under use of women and
disadvantaged group members. Employers establish goals
and timetables to increase recruitment and selection of
women and other groups in underutilised job categories.
Human Resource Management in South Africa 3/e
by Grobler, Wärnich et al ISBN 1-84480-328-7
© 2006 Thomson Learning
Summary
• Government legislation has greatly affected
the selection process. Employers must ensure
that their recruitment practices are
nondiscriminatory and that each applicant is
given an equal opportunity.
• Sexual harassment has developed into a
complex but critical HR issue. Both quid pro
quo and hostile environment forms of
harassment are clearly prohibited. Employers
realise that developing complaint investigation
procedures and training supervisors to
respond must be done before a complaint is
filed to provide objectivity.
The environment CHAPTER 4:
for HR HR planning, research &
problem-solving
2 Finding & placing CHAPTER 5:
qualified workers
Job design and job analysis
Assessing & developing CHAPTER 6:
qualified workers Recruitment & selection
CHAPTER 7:
Labour relations
Induction, motivation & retention
CHAPTER 8:
Emerging HR
Internal staffing & career
practices
management
Chapter 4 –
HR planning,
research and
problem-solving
Chapter outcomes
• Define strategic human resource planning (SHRP)
• Understand the importance of SHRP to the organisation
• Identify the steps in the SHRP process
• Identify the methods by which an organisation can
develop forecasts of anticipated personnel (supply and
demand)
• List several common pitfalls in SHRP
• Recognise the importance of the HR research function
and cite the individuals and institutions that conduct HR
research
Chapter outcomes
(continued)
• Provide an overview of the major HR research methods
• Describe in detail the employee survey process - by far
the most common form of HR research
• Recognise the importance of conducting - whenever
possible - a cost-benefit analysis of HR activities and to
provide an example using employee absenteeism
• Cite some of the major personnel/HR problems -
absenteeism, turnover, job dissatisfaction and
perceptions of unfairness
Types of HR planning
• Input linkages
• Decision inclusion linkages
• Review and reaction linkages
• Planning horizon
• Strategy-linked HRP
• Who is responsible for SHRP?
– Main responsibility lies with HR managers
– HR managers must liaise with line management
• Why is SHRP so important?
• Elements of SHRP
• Steps in the SHRP process
– Situation analysis
– HR demand analysis
– HR supply analysis
– Strategy development
• Common pitfalls in SHRP
HR research
• Types of research
– Basic/Pure
– Applied
• The researchers
• HR research publications
Research techniques
• Surveys
– Job satisfaction survey
– Specific-use questionnaire
– Survey administration
• Exit interviews
• Historical study
• Controlled experiments
• HRIS
• Cost-benefit analysis
• Problem-solving and analysis
– Absenteeism
• Causes of absenteeism
• Measuring absenteeism
• Researching absenteeism
• Reducing absenteeism
– Turnover
• Problem-solving and analysis (continued)
– Job dissatisfaction
Causes of job dissatisfaction
Measuring job dissatisfaction
Reducing job dissatisfaction
– Perceptions of fairness
• Problem-solving and analysis (continued)
– Perceptions of fairness
Procedural & distributive justice
Measuring perceptions of fairness
Researching fairness
Reducing unfairness
Factors that affect
turnover
Employee
General turnover Demographic

economic
factors
trends
Job security
Local labour
market Personal
mobility
Summary
• SHRP is the process of getting the right number of
qualified people into the right job at the right time.
• To be effective, the SHR plan must be derived from the
long-range plans of the organisation.
• Strategy-linked HRP is based on a close working
relationship between HR staff and line managers.
• Various methods for forecasting HR needs exist.
• Sound HR research can significantly strengthen an
organisation’s HR programmes. Some specific uses of
research include measurement and evaluation of
current personnel policies, programmes and activities,
and appraisal of proposed policies, programmes and
activities.
• Research is generally classified as basic or applied. Most
HR research is applied research to solve a particular
problem or evaluate a proposed HR programme or
activity.
Summary
• HR research is conducted by a variety of individuals and
public and private organisations, including government
departments, private organisations, personnel
associations, universities and individual business firms.
In a business firm, HR research is usually conducted by
a member of the personnel staff. Results are available
in a number of journals and other publications.
• Techniques that are frequently used in HR research
include surveys, specific-use questionnaires, interviews
and historical studies. The controlled experiment has
only limited use because of the difficulties in applying
this technique in an organisational setting. The primary
uses of surveys, questionnaires and interviews are to
gather employees’ feelings and perceptions about areas
of job satisfaction and dissatisfaction and to evaluate
present and proposed HR programmes and policies.
• An important requirement for HR research is a valid
HRIS. Without relevant information, it will not only be
difficult to carry out meaningful research but the HR
staff’s day-to-day effectiveness will also be limited.
Summary
• Whenever possible, HR professionals should
analyse HR problems and evaluate their
programmes using a cost-benefit analysis. Some
problems and activities that lend themselves to this
form of analysis are turnover, absenteeism,
attitudes and employee grievances.
• Although HR professionals and line managers must
confront a wide array of people problems, a small,
hard-core group of problems seem to permeate
many organisations and consume an inordinate
amount of the time of line and staff decision-
makers. These problems typically include
absenteeism, turnover, job dissatisfaction and
unfairness. For problems such as these, decision-
makers must, through the use of HR research,
systematically analyse the extent of the problem in
their organisations, determine where the problems
exist and develop strategies to overcome them.
Chapter 5 –
Job design and
job analysis
Chapter outcomes
• Discuss workflow analysis and business process re-
engineering as approaches to organisational work.
• Understand how the design of a job affects
employee motivation and performance.
• Show various methods of designing motivating jobs.
• Understand how motivating jobs can be created by
building work teams.
• Become aware of radically new organisational
programmes such as TQM.
Chapter outcomes
(continued)
• Understand the basic elements of a job analysis
programme.
• Describe the end products of job analysis.
• Identify the major methods of job analysis.
• Discuss the future use and updating of job
analysis information.
• Cite techniques useful in writing job descriptions.
• Recognise the major elements of job descriptions
and job specifications.
Dividing work into jobs
• Work – effort directed towards producing and
accomplishing results
• Job – grouping of tasks, duties &
responsibilities that constitute the total work
assignment
• As organisations change, these tasks, duties &
responsibilities may also change over time
• When all jobs are added together they should
= the amount of “work” that is to be
completed
(continued)
• Workflow analysis – studies the way work
moves through the organisation
– Starts with examination of desired & actual
outputs (goods & services) into quantity &
quality
– Activities (tasks & jobs) that lead to the outputs
are evaluated to see if they can achieve the
desired outputs
– Inputs (people, material, information, data,
equipment etc) must be assessed to determine if
these inputs make the outputs & activities more
efficient
(continued)
• Re-engineering – generates the needed
changes in the business processes
– Purpose of business process re-engineering
 improve such activities as product
development, customer service & service delivery
– Require the use of work teams, training
employees to do more than one job and
reorganising operations, workflow and offices to
simplify and speed up the work
Designing jobs
• Major HR concerns:
– Employee productivity
– Job satisfaction
• Job design (JD) – determines how work is
performed & greatly affects how an employee
feels about a job, how much authority an
employee has over the work, how much decision-
making the employee performs on the job and
how many tasks the employee should complete
– JD determines working relationship with employees &
relationship among employees
Designing jobs (continued)
– JD determines:
• The nature of social relationships that
exist on a job
• Relationships between the employee and
the work
A framework for job design
Job content
Feedback
Task variety, autonomy,
complexity, difficulty, identity Task
Accomplishment
Job functions
Productivity
Responsibility, authority, Effectiveness
information flow, work Efficiency
methods, co-ordination
requirements Worker reaction
Satisfaction
Relationships Absenteeism
Turnover
Dealing with others, friendship
opportunities, teamwork
requirements Feedback
Major approaches to job
design
• Specialisation-intensive jobs
– Job simplification (job specialisation)
• Motivation intensive jobs
– Job rotation
– Job enlargement
– Job enrichment
– Work teams
Advantages - Major
approaches to job design
Specialisation intensive Motivation intensive
  Productivity of skilled   Productivity of challenged
workers
workers   Absenteeism
  Training time required   Turnover
• Easy to replace workers   Product quality
• More employee ideas
• Few mental work errors • Greater employee job
• Greater manager control satisfaction
of operations
New organisational
approaches
• Total quality management (TQM)
– Focuses on the quality of all the processes
that lead to the final product or service
– To be successful it requires support of top
management & the belief that quality is a
key part of every employee’s job
– Customer focus in the process of designing
and improving quality
– Proper implementation requires a clear
vision & support of top management and a
focus on results NOT the process
The office environment
• Work environment (space, workstations,
light etc) affects employee morale,
productivity and quality, absenteeism &
turnover
• Creativity can happen anywhere
• Retain the services of an architect or
design consultant
Robotics
• The use of robots to perform routine tasks
• Industrial robots:
– Anthropomorphic (approximate the appearance and
functions of humans)
– Nonanthropomorphic (machine-like and have limited
functions)
• First-generation robots – performed simple jobs
and had limited capabilities
• Second-generation robots – built with senses,
vision or touch, making them more adaptable
• New robots - perform most of the drilling, shaping
& bending tasks previously performed by robots
Ergonomics
• Taking into account the human factor in
designing the employee’s workstation
• Relationship between the employees and
their workstations – machines used,
lighting, noise, chairs etc, these can affect
productivity
• IBM Employee handbook identifies the
following:
– Posture
– Back
– Hand
– Environment
Productivity measures
• Quantity or volume produced
• Accurate measure of productivity is vital
to organisational improvement effort
• Gain competitive advantage
• Strategies to improve productivity &
quality
– Depends on employee seeing a link between
what they produce & what the company is
attempting to achieve
– What will work for one company may not for
another
Productivity measures
(continued)
• Organisations must be careful not to
measure the wrong things or overlook
those that are critical to success
• Merely implementing quality techniques,
including employee empowerment and
benchmarking will not produce benefits
• Productivity is the relationship between
what is put into a piece of work (input) and
what is yielded (output)
Three major components of productivity
Effectiveness
“Doing the right things”
The production process
Labour,
Goods
materials
Resource and Market
and capital Conversion
market services needs
Inputs Outputs
Utilisation & efficiency

“Doing things right”
Three major components of
productivity
• Utilisation – the extent to which
we use resources
• Efficiency – rate of conversion
while resources are being used
• Effectiveness – measured in
terms of “doing the right things”
Other JD issues
• Work schedules
– Flexitime
– Compressed workweeks
• Alternative physical work locations
– Telecommuting
The nature of job analysis
(JA)
• Job analysis – systematically investigate the
tasks, duties and responsibilities of the jobs
within the organisation
• Investigates:
– Levels of decision-making
– Skills employees need to do a job adequately
– Autonomy of the job
– Mental effort required to perform the job
– Machines operated, reports completed & special
financial/other responsibilities
– Working conditions (levels of temperature, light etc)
The importance of JA
• New realities:
– Organisational restructuring due to
downsizing
– The need to motivate and reward people
– The impact of technology on jobs
throughout the organisation
– Labour legislation pertaining to
employment equity and general
discriminatory practices
– The implementation of teams
Components of a job
• To understand a specific job and to be
able to make comparisons among or
between jobs, it is important that
anyone analysing a job should know
that it can be broken down into several
components and arranged into a
hierarchy of work activities
Hierarchy of work
activities
Job family
Occupation
Job
Position
Duty
Task
Element
Programme
implementation
1. Committee review
2. Information collection
– General methods
• Site observations
• Work sampling
• Interviews
• Diaries
• Questionnaires
– Specific methods
• PAQ
• FJA
• CMQ
• WPS
Programme
implementation
3. Information review
4. Product completion
• Job description (JD)
 Uses of a JD:
− Recruitment
− Interviewing
− Orientation
− Training
− Job evaluation
− Wage/salary surveys
− Performance appraisal
− Outplacement
Programme
implementation
4. Product completion (continued)
• Job description (JD) (continued)
 Elements of a JD:
− Job identification
− Job summary
− Job duties & responsibilities
• Job specification (JS)
• Skills
• Knowledge
• Abilities
5. Future use & updating
JA problems
• Employee fear
• Need to update information
regularly
• Job is held by only one or two
employees
Summary
• Understanding how people are motivated, that is, their
needs and goals, is critical to modern job design.
• The task employees perform on the job and the variety,
difficulty level and autonomy of the job greatly affect
job satisfaction and productivity.
• Employees, individually or in work teams, are being
asked to take on greater responsibility for the design
and control of their jobs. Simple, repetitious tasks are
eliminated whenever possible, generally resulting in
jobs that are more motivating and challenging. At the
same time, some degree of job specialisation is
necessary so that new employees can learn their jobs
quickly and make fewer errors.
• Programmes such as job enrichment, self-managed
work groups, TQM and re-engineering have resulted in
redesigned jobs that were previously highly specialised
and boring. There is also a trend toward multiskilling,
whereby team members learn multiple tasks.
Organisations are adopting work teams and giving them
more freedom and responsibilities.
Summary
• Total Quality Management (TQM) is one of the fastest-
growing productivity improvement programmes in the
world. It is based on the principle of commitment to
continuous improvement and meeting customers' needs. It
is largely a bottom-up change effort.
• Re-engineering is more radical. It involves more than
tweaking old procedures; it is the redesign of business
processes to achieve major gains in cost, service or time.
The process begins with the simple but powerful question: If
we could start from scratch, how would we do this? It is
different from TQM because it comes from the top down.
• Technology plays an important role in modern job design.
Robotics, ergonomics and the office environment can
improve employee creativity, productivity and quality.

Summary
• In addition to job design, organisations may choose to
implement programmes that increase workplace flexibility.
These programmes tend to adopt a scheduling mix between
employees' needs and the organisation's staffing requirements
in ways that are consistent with the company's culture.
Compressed work weeks, flexitime programmes and
telecommuting are the most common approaches. Employees
who desire greater control over work hours, who would like
easier commuting or want a different lifestyle will be attracted
to organisations that offer these types of programmes.
• A sound JA programme produces many benefits for an
organisation. Information critical to employment and
compensation is collected on a systematic basis. JDs, JSs and
JEs can easily be produced from the JA data. Thus, critical HR
practices such as hiring, wage determination and
administrative record-keeping are assisted by job analysis.
• Information collection should always begin by conducting a
background search. Internal sources can include previous job
analyses, interviews with job incumbents and job supervisors,
site observations by the
Human analyst,
Resource questionnaires
Management in South Africa 3/e and diaries.
Summary
• There is a variety of job analysis methods, with each having certain
advantages, depending on the purpose, cost and time. The most popular
method is the PAQ. A more complex method that demands computer
analysis and that can handle thousands of jobs and people is the FJA.
• Job analysis is necessary to comply with the primary employment
provisions. The process helps to determine essential functions and
whether an individual can carry out the essential functions with or without
reasonable accommodation.
• Job descriptions generally should contain a complete identification of the
job and its location within the organisation. The section on duties and
responsibilities should group all tasks into major functional categories,
and each entry should begin with verbs. Job specifications should include
all SKAs needed to perform the job, as well as other minimum
qualifications.
Chapter 6 –
Recruitment &
selection
Chapter outcomes
• Identify different ways that labour markets can be
identified and approached
• Discuss the advantages and disadvantages of internal
versus external recruiting
• Identify internal and external methods of recruiting
• List and discuss a number of hiring alternatives
• Explain the HR department's role in the selection
process
Chapter outcomes
(continued)
• Diagram and discuss the sequence of a typical
selection process
• Discuss several types of selection interviews
and some key considerations when conducting
these interviews
• Discuss the merits of references
• Describe the various decision strategies for
selection
• Explain how legal concerns impact on both
recruitment and selection
Definitions
• Recruitment – the process of acquiring
applicants who are available and
qualified to fill positions in organisations
• Selection - the process of choosing
from a group of applicants the
individual best suited for a particular
position
Linking the role of
External
Recruitment Organisation’s
labour
activities need for
market
additional
labour
Selection
activities
The recruitment process
Internal
sources
HRP JA info Internal
Job openings identified
Job requirements
Satisfactory pool of
methods
recruits
Environment AA &
EE
External
sources
Specific Manager’s External
requests comments methods
Recruitment strategies in a
diverse workforce
• Non-traditional recruitment strategies:
– Disadvantaged training programmes
– Learnerships and mentoring programmes
– Career exhibitions
– Telerecruiting
– Diversity data banks
Labour markets
information
• Labour market sources
– Part-time employees
– Underemployed individuals
– Pirating
• Operation of the labour market
Recruitment sources
• Internal sources
(Also discuss employee relocation,
glass ceiling)
• External sources
(also discuss Peter Principle)
Advantages
• Internal recruitment • External
  Morale recruitment
– Knowledge of records – Applicant pool is
– Chain effect of bigger
promotion
– New ideas, contact
– Need to hire at entry
level   Internal infighting
– Usually faster, less – Minimises Peter
expensive Principle
Disadvantages
• Internal • External
recruitment recruitment
– Unhealthy – Destroy incentive of
competition employees to strive for
– Inbreeding promotion
– Morale problem for – Individual’s ability to fit
those not promoted in is unknown
– Strong management – Increased adjustment
development problem
programme needed
Methods of recruitment
• Internal methods
– Job posting
Methods of recruitment
• External methods
– Direct applications
– Employee referrals
– University campus recruiting
– Private employment agencies
– Advertising
– Direct mail
– Radio, TV & the Internet
Hiring alternatives
• Assigning overtime
• Temporary help
• Leasing employees
Selection
• An HR responsibility
• Selection and the law
• Selection process
Framework for selection
Selection instruments
Job specification
Job success criterion
Job design
Organisational goals
Steps in the selection
process
Comply?
Initial screening
Yes/No
Application blank
Yes/No
Pre-employment
testing Yes/No
Reject
Interviews Yes/No
Reference checks Job

Yes/No
offer
Medical examination Yes/No

Initial screening (step 1)
• Removing obviously
unqualified/undesired applicants
• Critical job specifications or
requirements of EEA
• CV red flags
• CV tracking system

Application blank (step 2)
• Information obtained is compared
to JS to determine if there is a
potential match
• Weighted application blank
• CV method
• Uses of application blank

Pre-employment testing
(step 3)
• Reliability of a test refers to
consistency of measurement, usually
across time but also across different
raters
• Validity is the extent to which scores
on a test or interview correspond to
actual job performance

Pre-employment testing
(continued)
• Employment Equity Act Section 8
of Chapter II
• Managerial selection devices
– Assessment centres

Interviews (step 4)
• Purpose of the interview:
(1)Does the applicant have the ability
to perform the job?
(2)Will the applicant be motivated to
be successful?
(3)Will the applicant match the needs
of the organisation?

Interviews (continued)
• Reliability & validity of interviews
• Problems with interview
• Structured & objective process
• Effective interviewing:
– Setting
– Documentation
– Standardisation
– Scoring
– Reviewing specifications
– Reviewing the application blank
– Training the interviewer
– Job-related questions
Interviews (continued)
• Types of interviews
– One-on-One
– Panel
• Structured interview
(directive/patterned)
• Realistic job preview

Reference checks (step 5)
• Methods (personal visits,
telephonic, mail)
• Telephone – advantages:
– Immediate clarification
– More information
– Relatively little expense
– Additional areas
– A structured form

Reference checks
(continued)
• Personal references
– Verify data received on application blank
– Evaluate the quality of the personal
recommendation
– Determine how well the person knows the
applicant
• Previous employers

Medical examination (step
6)
• After job offer has been made
• Contingent to passing the medical
examination
• EEA Section 7(1) and (2) & Section
50(4)
– Can test if it can be justified

The selection decision
• Compensatory selection – all applicants
who pass the initial screening will be
tested, interviewed etc
• Multiple hurdles selection – applicant
needs to pass each hurdle (step)

Record keeping
• EEA
• LRA
• Keep complete set of records of the
recruitment and selection process
• Proof of non-discrimination
• Keep documents such as advertisements,
contract with employment agencies etc

Summary
• Recruitment requires the HR specialist to acquire a pool
of available and qualified applicants. The recruiters can
tap a variety of sources, including current employees,
part-time workers, the unemployed and employees of
other organisations who feel they are underemployed.
• Job-posting programmes are widely used to recruit
applicants for positions. New voice-mail and electronic-
mail systems offer several advantages over traditional
bulletin boards.
• Effective recruitment advertising has increased because
of the use of common marketing research tools. The
need for advertising has increased because of dual-
career couples and a general unwillingness to relocate
on the part of professional and technical employees.
• Current employees are the most common source of
applicants for higher-level positions. They offer the
organisation several advantages over external
applicants and give all employees the incentive of
knowing that they may be promoted as a reward for
hard work. by Grobler, Wärnich et al ISBN 1-84480-328-7
Summary
• Overtime, temporary help and leasing are alternative
sources of additional labour. Depending on the number
of hours and skills needed, these recruitment sources
may be more desirable than hiring permanent
employees.
• University/school campus recruitment has become
more competitive and employers more sophisticated in
their methods. A poor economy should signal to
students the need to sue innovative job leads.
• Pre-employment tests can be effective tools in the
selection process. If carefully selected, validated and
monitored, they can help select applicants who will
match the position's requirements.
• Reference checking has increased in use but has been
subjected to legal challenges. Employers can legally
provide factual and accurate information, but they
should be able to verify any job-related information
they release.
Chapter 7 –
Induction,
motivation and
retention

Chapter outcomes
• Identify different ways that labour markets can be identified
and approached
• Discuss the advantages and disadvantages of internal
versus external recruiting
• Identify internal and external methods of recruiting
• List and discuss a number of hiring alternatives
• Explain the HR department's role in the selection process

Chapter outcomes
(continued)
• Diagram and discuss the sequence of a typical
selection process
• Discuss several types of selection interviews and
some key considerations when conducting these
interviews
• Discuss the merits of references
• Describe the various decision strategies for
selection
• Explain how legal concerns impact on both
Definition
• Induction/orientation/socialisation –
the process of integrating the new
employee into the organisation and
acquainting him/her with the details and
requirements of the job

Objectives of induction
• Acquainting new employees with job procedures
• Establishing relationships with co-workers, including
subordinates and supervisors
• Creating a sense of belonging among employees by
showing them how their job fits into the overall
organisation
• Acquainting new employees with the goals of the
organisation
• Indicating to the employees the preferred means by
which these goals should be attained
• Identifying the basic responsibilities of the job
• Indicating the required behaviour patterns for
effective job performance

Model for induction
• Phase I – Anticipatory socialisation
– Realism about the organisation
– Realism about the job
– Congruence of skills and abilities
– Congruence of needs and values

Model for induction
(continued)
• Phase II – Encounter
– Management of outside-life conflicts
– Management of intergroup role conflicts
– Role definition
– Initiation to the task
– Initiation to the group

Model for induction
(continued)
• Phase III – Change and acquisition
– Resolution of role demands
– Task mastery
– Adjustment to group norms and
values

Benefits of induction
  Job satisfaction
  Labour turnover
  Commitment to values and goals
  Performance as a result of faster learning times
  Costly and time-consuming mistakes
  Absenteeism
  Customer service through heightened
productivity
  Manager/subordinate relationships
  Understanding of company policies, goals and
procedures

Reasons for the lack of
effective induction
• The supervisors responsible for the task either
lack the time or ability to fulfil this obligation
• Organisations do not regard anxiety and stress,
owing to insecurity and unfulfilled expectations,
as a primary cause of labour turnover among new
employees. They therefore consider induction to
reduce anxiety and stress as unnecessary
• Organisations regard effective recruitment,
selection, training and development as
substitutes for induction
• Where induction programmes are introduced, the
key components are lacking

Reasons for the lack of
effective induction
(continued)
• Induction is aimed at inducing new employees to
adhere to organisational practices and procedures
while little attention is paid to instilling loyalty and
commitment to the organisation
• Employees who are transferred or promoted within
the organisation are not subjected to induction
programmes
• Induction programmes are not followed up, i.e. the
success of these programmes is not determined
• Induction programmes often concentrate on
promoting the image of the organisation

Responsibility for
induction
• The supervisor - ensures that the employees in the
section receive all the information necessary to enable
them to function as efficiently and effectively as possible
(introduction of new employees to co-workers, explaining
job duties and responsibilities as well as policies,
procedures, rules and regulations and also taking the
employees on a familiarisation tour of the workplace)
• The head of department - meets all new employees and
briefly explains to them the role and responsibilities of the
particular department within the organisation
• The human resources department - the employment
contract, compensation, loan facilities, medical schemes,
pension plans and the development and monitoring of the
success of the induction programme

Responsibility for induction
(continued)
• A 'mentor' or 'buddy‘ - responsible for assisting the
new employee regarding how to operate basic
equipment such as photocopiers, telephones and
faxes and how to dispose of the mail. He/she may also
demonstrate how to log on to computers, generate
passwords and use basic programs (junior member of
the workgroup).
• The shop steward/staff representative - explains
issues such as grievance and disciplinary procedures
• New employees - responsible for the completion of
induction evaluation forms. They must also provide
informal feedback to the HR department and
supervisors if requested

Who should be given
induction training?
• New employees - do not assume that new
employees would immediately know what it has
taken others months or years to learn
• Transferred/promoted employees - current
employees who have been transferred or
promoted within the organisation should receive
induction training (especially if it involves a
significant change of environment)
• All current employees - reinduction
programme involving all current employees
should take place periodically (important if
significant changes in organisational policies or
structures have taken place eg. if one
organisation is purchased by another)
Scope of induction training
• Two levels:
– General organisational induction – affect all
employees in the organisation
– Specific departmental induction – tailored to the
new employee’s specific department
• Employee handbook – review regularly, guard
against too much detail, mention topics briefly,
could also be on website

Approaches in induction
Formal induction Informal induction
• 3 basic approaches:
– Verbal
– Written
– Audiovisual
How long should the
induction training be?
• Avoid cramming all induction (detailed
information) into one long session
• Sessions should not be longer than 2
hours
• Period of induction should be linked to
time it takes to become effective
• Follow-up sessions are important after
± 2 months

Planning an induction
programme
• Developing induction programme takes 3-6
months
• Key planning considerations:
– Induction policy - properly formulated induction
policy, drawn up jointly by management &
employees adopted by top management
– Budget - adequate budget should be made
available for this purpose
– Other planning considerations - A number of
other aspects must also be considered:
• Time needed to plan & implement

Planning an induction
programme (continued)
– Other planning considerations - A
number of other aspects must also be
considered: (continued)
• Programme goals, topics to be included, methods
of organising and presenting them, duration of
induction sessions
• Materials, facilities and personnel to be used
• General organisation topics versus department
and job topics to be covered
• Qualifications and training needs of human
resources personnel, line managers and
supervisors
• Programme flexibility to accommodate employee
differences in education, intelligence and work
experience
Designing an induction
programme
• Different groups in the organisation require
different induction programmes (eg.
management & non-management)
• Design programme to include all the information
the newcomer will “need to know” and the “nice
to know” as well
• “Need to know” – information the newcomer
requires as soon as possible to fit in & be
effective
• “Nice to know” – can be given over a period of
time as they settle in
Designing an induction
• Categories of information:
– Job-related information - describes
what the job entails and how it is
done
– General information - includes a
great deal of information, such as
fringe benefits, safety and accident
prevention and physical facilities
Implementing the induction
programme
• Steps:
– Pre-employment preparation - process begins during recruitment
and selection stage, first impressions are formed at this stage
– Pre-employment information - formal letter of appointment
(containing: a JD, starting salary, salary progression, grade of job,
basic terms & conditions of employment, location of job and
probationary period, indicate whether job offer is conditional upon
satisfactory references/medical checks)
– 1st day instructions - job accepted in writing, the newcomer
should be sent instructions for the first day. Copy of letter sent to
supervisor. Should include:
• Office number & locality of the building to report for duty
• Name & job title of person to whom the employee must report
• Date to report & starting time
• What they should bring when reporting for duty

• Steps: (continued)
– The welcome pack - contains more information on the
organisation, could also be sent. Following items can be
included:
• A letter of welcome from the managing director of the
organisation
• Organisational charts
• Details of rules and conditions
• A letter of welcome from the recognised trade union
• Map of the facility
• Telephone numbers and locations of key personnel and
operations
• Detailed outline of emergency and accident-prevention
procedures
– Organising the work - duties that the new employee will
perform must be discussed by the supervisor and his
employees. The new employee must be given some meaningful
work on the first day
– Briefing colleagues - other staff should be briefed about the new
employee (should be informed of the name of the newcomer, the
post to which he or she has been appointed, his or her background,
job location and the date of commencement of duties)
– Administrative arrangements - office of newcomer must be
cleaned and made ready for arrival
– Training – consider any training needed by newcomer
– The first day induction – should be short, the newcomer should
start rather late and leave earlier than normal
– On arrival - when a new employee arrives at the workplace for the
first time it is important that the person who meets him/her has
prior knowledge of his or her arrival
– Basic information - newcomer may first be introduced to a senior
manager/ proceed directly to the HR department (banking details,
new address/telephone number will be obtained etc)

– The initial discussion - paperwork completed, time
to meet the department head (initial conversation,
cover mutual expectations & give an idea of what to
expect during the 1st day & week)
– Building the relationship - department head
should establish rapport (built on mutual respect)
– Immediate supervisor - will introduce the
newcomer to fellow workers & also conduct a tour of
the workplace (briefly discuss the JD, standards &
assessment) inform when and where required to
attend induction lectures/sessions
– The buddy or mentor - should be about the same
age and grade as newcomer (will assist regarding
questions as they arise, temporary arrangement)
Evaluation of the induction
programme
• Benefits:
– To ensure that the organisation is
spending its money wisely and
achieving positive results
– That the methods used to assist new
employees to integrate and become
effective workers in the organisation
are the most suitable

Evaluation of the induction
programme
• Use questionnaires, surveys, exit interviews
and course evaluation forms, qualitative
information can also be gathered:
– Who should be involved? Depending on
the type of information to be collected, the
HR department will be directly involved
– What will be measured? Various elements
will need to be measured over different time
scales

Motivation
• Completing the induction process does not
guarantee satisfactory employee performance
• Many factors affect performance abilities,
efforts expended & continued organisational
support received
• HR should analyse and address these areas

Motivation
• Definition:
– The force that energises behaviour,
gives direction to behaviour and
underlies the tendency to persist
even in the face of obstacles

Motivation
• Motivators are specific to an individual
• A manager should attempt to meet the
employee’s important needs/basic
requirements for worker productivity
• Increased diversity of workforce

Maslow’s hierarchy of
needs
Self-actualisation needs
Self-esteem needs
Social needs
Security needs
Physical needs
Alderfer’s ERG theory
• Closely related to Maslow’s hierarchy of
needs
• ERG (existence, relatedness and
growth)
• Differences do exist, however
• Alderfer proposes that, when one need
is frustrated, we simply concentrate on
the others
Achievement motivation
• David McClelland
• 3 needs are emphasised: achievement,
affiliation & power
– The need to achieve (N ach) -
preoccupation to focus on goals, improving
performance and tangible results (associated
with self-discipline, schedule-keeping,
accepting responsibility and becoming
success-oriented, often associated with lack of
group orientation)
Achievement motivation
(continued)
– The need for affiliation (N aff) - motivates
people to make friends, to become members of
groups and to associate with others (focus on
human companionship, interpersonal relations &
concern for others)
– The need for power (N pow) - desire to obtain &
exercise control over others, resources and the
environment
• N aff + N pow strong  individual demonstrates a
propensity for either totalitarian methods of control or
more democratic methods
• N Ach + N pow  different types of assertive
behaviours and management styles
Goal setting
• Edwin Locke
• Job performance can be increased
through goal setting - when individuals
are given measurable goals rather than
vague performance standards
• Best-known expression of goal setting
theory is management by objectives
(MBO)
Goal setting (continued)
• Goal-setting strategies involve a systematic
process  manager & subordinate discuss and
agree on a set of jointly determined goals
• Present a case for or against each goal
• Final result - a set of goals that is in keeping with
the overall goals of the organisation
• Feedback on progress is periodically supplied,
enabling the worker to make necessary corrections
• Link between performance & rewards is clear
(emphasis on what is achieved rather than on
how)
Positive reinforcement
• The practice of giving valued rewards to someone
who has just engaged in a desired behaviour
• Law of effect - behaviour that leads to a pleasant
response will be repeated, whereas behaviour that
results in an unpleasant response tends not to be
repeated
• Reinforcement is at the heart of merit increases
• For reinforcement to continue to affect employees’
future behaviour manager must make certain that
rewards are meaningful and desired by each
employee
• Manager must tailor the reward, whether it be
recognition, pay or changing job requirements, to fit
the employee
• Manager must be sure that employees realise that
rewards are contingent on correct behaviour.
Herzberg’s two-factor
theory
• Frederick Herzberg
• Motivator-hygiene factors - applied to
the workplace and job design
• Herzberg noticed that people identified
different things as sources of work
dissatisfaction (hygiene factors) from
those that were sources of satisfaction
(motivators)
• Satisfaction and dissatisfaction not
simple opposites
Herzberg’s two-factor theory
(continued)
Level of job
dissatis-
- job environ-
Hygiene factors: faction
ment More money,
Hygiene needs better supervision,
creates good working Level of job
demand for
conditions etc performance
Level of job
+ job Motivators: satisfaction
opportu- Achievement,
Motivator needs nities responsibility,
allow growth, work itself,
workers to
achieve
recognition
Individual/organisational
relationships
• The psychological contract - entails
beliefs about what employees believe
they are entitled to receive because
they perceive their employer promised
to provide these things
– Unwritten
relationships (continued)
• The psychological contract
– Violations of the psychological contract
– Changing of the psychological contract
– Practical implications for companies
regarding psychological contracts
Retention of human
resources
• Compensation & benefits
• Organisational environment
• Work/development environment
• Work-life balance
Summary
• Starting a new job is not easy. It is important that careful
attention be paid to the introduction of the new employee to
the organisation, his or her co-workers and his or her job. This
is also applicable to transferred and promoted employees. The
method to achieve this is by means of a well-designed
induction programme.
• To implement the programme successfully requires the joint
effort of the HR department, the line managers and the
existing employees.
• While the first day of the new employee at the organisation is
critical, there are limits to what can be achieved and the
induction will often have to be spread over a longer period.
• When planning the induction programme, it is important to
note not only the content of the programme but also the best
way of handling it. The programme will also have to be
monitored regularly to correct any problems and to see
whether any redesign is necessary.
• Successful induction will lead to better-motivated employees
and higher productivity within the organisation.
Summary
• After induction has been completed, it is important
that the employee receives proper training in order
to improve his or her skills within the job
environment.
• Individual performance components include
individual ability, effort expended and organisational
support.
• Motivation deals with the needs and desires of
human behaviour. Various theories of motivation
have been developed.
• A psychological contract contains the unwritten
expectations that employees and employers have
about the nature of their work relationship. Those
contracts are changing along with employee loyalty
to their employers.
• Retention of employees is a inmajor
Human Resource Management focus of HR
South Africa 3/e
efforts in organisations. The determinants of
Chapter 8 –
Internal staffing
and career
management
issues

Chapter outcomes
• Understand the reasons for the design of a proper
internal staffing programme
• Identify the factors that influence internal staffing
decisions
• Name the advantages of internal staffing
• Identify the various types of internal staffing strategies
• Discuss the guidelines for the selection of the best type
of internal staffing strategy
• Describe the elements necessary for a successful career
management function
• Examine the problems that typically confront employees
when seeking to advance their careers
• Define a plateaued employee

Reasons underlying the design
of a proper internal staffing
programme
• Employee dissatisfaction
• Increasing concerns with job security
• Changing employee attitudes and
concerns
• Employment equity issues
• Labour union presence

Factors influencing staffing
decisions
• Organisation growth
• Reorganisation
• General economic trends and other
issues
• Attrition

Advantages of internal
• staffing
Maintain closer control over the skills & work habits
acquired by their existing employees
• Gradually prepare employees to fill complicated or
critical positions without overburdening their capacity to
learn
• Employers do not have to spend time orienting the new
incumbents to the business environment or to
standardise operating procedures
• Have more detailed information about the abilities,
aptitudes and work habits of internal employees
• Employee satisfaction and commitment
• Fulfil hiring goals and timetables specified in
employment equity actions
• Employees placed in the best interests of both the
organisation and the individual.
• Can contribute to the organisation's bottom line
Requirements for effective
internal staffing
• Pay close attention to identifying the current employee skill
levels and development needs
• Employees must be flexible to be able to move easily within
the organisation and thus be better utilised
• Multiskilling - broadening of employee's skills beyond the
bounds of their current jobs, must be available
• Ensure that internal equity exists in matters such as
compensation, promotion and access to training
• HRIS should exist
• Involvement of top-level managers & line managers

Types of internal staffing
strategies
• Categories:
– Pure selection strategy
– Vocational guidance strategy
– Compromise staffing strategy

Guidelines for the selection
of the most effective internal
staffing strategy
• Selection ratio
• Performance costs
• Type of job

Various approaches to
internal staffing
• 2 objectives:
– Organisational effectiveness
– Employee satisfaction and commitment
• Moves:
– Promotion
– Demotion
– Transfer
– Lay-off
– Down-sizing/retrenchment
Various approaches to
internal staffing (continued)
• Moves: (continued)
– Resignations, quits & dismissals
– Retirement
– Cost of employee separations

Career management
• Career - sequence of jobs held during a
person’s working life
• Career management - process of designing
and implementing goals, plans and strategies
that enable HR professionals and managers to
satisfy workforce needs and allow individuals to
achieve their career objectives
• Individual career planning - process whereby
each employee personally plans career goals
• Organisational career planning - process
whereby management plans career goals for
employees

Benefits to the
organisation
• Staffing inventories
• Staffing from within
• Solving staffing problems
• Satisfying employee needs
• Enhanced motivation
• Employment equity

Changing face of career
management
• Traditional path of career progression upwards
has gone
• Increased competition, cost competitiveness
and information technology have all resulted in
the de-manning and de-layering of
organisational structures
• Organisations have removed the rungs of the
career ladder and instead are concentrating on
the optimal use of their human resources

Changing face of career
management
• Differences between levels in
organisations with flatter structures are far
greater, there is a qualitative leap rather
than a quantitative step involved
• Moves sideways rather than upwards are
more frequent
• The concept of a series of positions to an
ultimate top position has been replaced by
the individual’s acquisition of
competencies which enable him/her to
manage change at the next level of
responsibility
Balancing individual and
organisational needs
Organisation’s needs
Strategic / Operational
Career management
Personal / Professional
Individual’s needs
Successful career
management
• Organisational career planning
• Individual career planning
• Integrating plans
• Implementing plans
• Evaluation of career plans
Other issues
• Plateaued employee
• Dual-career couples
Summary
• The movement of employees from one post to another
within an organisation is known as internal staffing. These
movements are usually necessitated by growth factors,
which may be either positive or negative in nature, or by
employee losses from a variety of causes.
• The movement of employees can be broadly classified into
four categories: up, down, across and out of the
organisation.
• In order to be effective, the manager should regularly review
policies and programmes regarding internal staffing. Thus, in
addition to possessing mechanisms for identifying where
vacancies are likely to occur, and for the development of
employees to fill them, all organisations should have
established practical ways of handling all promotions,
transfers, demotions and retrenchments, as well as
retirements.
• There should be a tried and satisfactory method of
identifying the most suitable candidates, deciding among a
variety of candidates, easing transitions across jobs and
monitoring all these activities from an organisational and
individual perspective.
Summary
• There are different types of strategy that can be used to
assist with internal staffing decisions; these are a pure
selection strategy, a vocational guidance strategy and a
compromise strategy.
• Career management involves integration of organisational
staffing needs with the career goals and aspirations of
individuals. To be effective, career management should be
formal and planned, should receive support from top
management and should be recognised as a process that
involves coordination of a number of separate yet
interrelated HR tools and techniques.
• Once organisational HR staffing needs and personal career
goals have been defined and integrated, a number of
personnel practices can start a career in motion. These
include job posting, PA and T & D activities.
• Dual-career couples should be prepared to deal with
problems that include potential conflicts over career paths
and the division of family responsibilities. Assistance from
organisations may include dual-career audits, special
recruiting techniques and special policies for dual-career
couples.
The environment
for HR
CHAPTER 9:
Finding & placing Performance management &

qualified workers appraisal
CHAPTER 10:
3 Assessing & developing Training & development
qualified workers
CHAPTER 11:
Managing compensation &
Labour relations
benefits
CHAPTER 12:
Emerging HR
practices Health & safety
Chapter 9 –
Performance
management
and appraisal
Chapter outcomes
• Explain the evaluative and developmental
objectives of performance appraisal
• Describe the major performance appraisal
methods
• Design and evaluate a programme of
performance appraisal
• Discuss who should perform the appraisal
• Provide examples of several rater errors
• Discuss several concerns about appraisal
feedback interviews
Definitions
• Performance appraisal (PA) - ongoing
process of evaluating and managing both the
behaviour and outcomes in the workplace
• Performance management (PM) - a
broader term than performance appraisal,
became popular in the 1980s as total quality
management (TQM) programmes
emphasised using all the management tools,
including performance appraisal, to ensure
achievement of performance goals
Organisational performance
management cycle
performance management
dilemma
• Insufficient line management support
for performance management
• Periodic and formal performance
reviews:
– Lack of follow-up of performance reviews
– Overemphasis on the appraisal aspect at
the expense of development
– Inadequate performance information and
inadequately maintained objectivity
Performance criteria
• 3 types of performance criterion:
– Trait-based criteria - focus on the personal characteristics
of an employee (eg. loyalty, dependability, creativity and
communication skills, focus on what a person is, not on
what he or she does or accomplishes on the job)
– Behaviour-based criteria - specific behaviours that lead
to job success (eg. instead of ranking leadership ability (a
trait), the rater is asked to assess whether an employee
exhibits certain behaviours)
– Results or outcome-based criteria - focus on what was
accomplished or produced rather than how it was
accomplished or produced
PA objectives
EVALUATE DEVELOPMENTAL
• Compensation decisions • Performance feedback

• Staffing decisions • Direction for future performance
• Evaluate selection • Identify T&D needs
system
The appraisal process
• Steps in developing a PA system:
– Determine performance requirements
– Choose an appropriate appraisal method
– Train supervisors
– Discuss methods with employees
– Appraise according to job standards
– Discuss appraisal with employees
– Determine future performance goals
Legal considerations
• Written appraisals conducted regularly
• Supervisors should be trained
• Apply consistent, explicit and objective
• Audit system
• Problem areas detailed & documented
• Problems identified establish things for
improvement
• Give employee clear opportunity to respond
• Employer should be able to prove that
employee received the appraisal
• Circulation of PA should be restricted
• Check past PAs
Methods for appraising
performance
Category rating Comparative
• Graphic rating scale • Ranking
• Non graphic rating scale • Force distribution
• Checklist of critical incidents • Paired comparison
PA
methods
Behavioural/objective Narrative
• Behavioural rating approaches • Critical incidents
• MBO • Essay
MBO process
Goal setting
Periodic review MBO Action planning
Self control
Common rater errors
• Halo effect
• Central tendency
• Leniency
• Rater bias
• Strictness
• Recency/primary effect
• Overall ratings
Who should do the rating?
• Supervisors
• Peer evaluations
• Customer/client evaluations
• Self-ratings
• Reverse appraisals
• Team portfolio appraisals
Assessment centres
• Many of the employee performance appraisal
systems focus on the employee’s past
performance
• Using the assessment centre method it is also
possible to, at the same time, attempt to
assess a candidate’s potential for future
advancement
• Assessment centres are used increasingly to:
– Identify employees who have higher level
management potential;
– Select first-line supervisors; and
– Determine employee development needs.
Monitoring employees on the
job
• Possible to evaluate employee performance
electronically
• Video surveillance is used to discourage theft and
other rule violations
• Telephone surveillance of service representatives
has been used for a long time to monitor the timing
and content of customer contacts
• Computer programs can monitor keystrokes to track
employee performance, eavesdrop on employee
electronic mail (e-mail) and record who accesses
which databases at what times
• Monitoring employees by computer or any other
method is open to serious invasion and privacy
issues
Systems approach to effective
PAs
Effective Top Appraisal Ongoing
appraisal management outcome linked systems
support support ratings review
Effective Motivate raters to

Effective Ongoing
conduct effective
manager-rating performance appraisal &
appraisals
practices planning actv coaching
Effective Clear Employee/ma- Properly

system appraisal nager input in trained
design purpose system design personnel
The appraisal interview
• Problems with the appraisal
interview
– Playing God
– Inability to give criticism
– Personality biases
– Inability to give effective feedback
(continued)
• Interview format
– Prepare for the interview - important in
a successful appraisal interview. Supervisor
(or other rater) should gather and review all
relevant performance records (these include
all data regarding work output and quality,
absenteeism and tardiness etc.)
– State the purpose of the interview. The
employee should be told if the interview will
cover compensation and staffing decisions
(merit increase, promotion, transfer, etc.),
employee development or both
(continued)
• Interview format (continued)
– Indicate specific areas of good performance
and areas that need improvement - begin the
discussion by highlighting areas of good
performance. Appreciation and recognition for good
work are important parts of the appraisal interview.
Areas of performance in need of improvement are
discussed next
– Invite participation. Throughout the employee
should be invited to comment. This enables the
employee to let off steam and tell why certain
performance problems exist. It is also an opportune
time to clear up any misunderstandings that may
still exist about job expectations
(continued)
• Interview format (continued)
– Focus on development - setting up the
employee’s development programme.
Employees are much more likely to be
committed to developmental programmes if
they agree with the supervisor that the
programme is necessary to improve job
skills and abilities. Employees who feel that
no performance problems exist or that a
programme of development is unnecessary
to promote career goals will be
uncommitted to development. Supervisors
must clearly show their employees how
development is related to job success
(continued)
• Problem-solving interviews
– Objectives
– Psychological assumptions
– Role, attitude & skills of interviewer
– Employee’s motivation for change
– Possible gains
– Risks of interviewer
– Probable results
Summary
• Employees generally dislike and fear PA, and even
supervisors find the process stressful. Employees tend to be
satisfied with the process if the appraisal interview is
constructive and if the chosen method is job-related and
provides specific direction for future performance.
• The PA process generally has two goals: (1) the evaluation of
employees' past performance for salary and selection
decisions; and (2) the improvement of future performance as
a part of career development. The evaluative objective tends
to dominate specific organisational uses of appraisal
information.
• The appraisal process should contain certain features. A
standardised process should evaluate all employees in a
consistent manner. Job analysis should be used in the
content development to ensure job-relatedness. Supervisors
should be trained in the process and should provide
employees with direct written feedback from the process.
• Certain rater errors, such as supervisor bias, halo effect or
recency, can only be minimised; others, such as leniency or
central tendency, can be eliminated. But forms that eliminate
these problems generally contain their own problems. Each
appraisal method Human
has unique advantages and disadvantages
Resource Management in South Africa 3/e
but rating scales continue © 2006to be Learning
Thomson used most often by HR
Summary
• The appraisal interview is the most important element in the
PA process. Supervisors who dislike 'playing God' find it hard
to act simultaneously as judge and friend. Supervisors need
to be trained for and give adequate attention to the appraisal
interview. Employee preparation can also help them to
provide useful input into the discussion, as well as to be
psychologically prepared for any possible negative feedback.
• Organisations can benefit by periodically evaluating their
appraisal programme. The HR department can provide
feedback to supervisors about the quality of their appraisals
and check for rater problems, such as the halo effect or
leniency. Multiple raters - such as peers, customers and team
ratings - may be used as information added to supervisor's
ratings.
Chapter 10 –
Training &
development
Chapter outcomes
• Identify the major purposes of training and development
(T&D)
• Recognise the differences and similarities between
employee training and management development
• Explain how to conduct a needs assessment, including
performing organisational, job/task and individual analysis
• Know how to design and deliver training
• Identify the many on-the-job and away-from-the-job T&D
techniques
• Understand how to evaluate a training programme
• Explain the importance of the South African Qualifications
Authority Act, No. 58 of 1995, the Skills Development Act,
No. 97 of 1998 and the Skills Development Levies Act, No.
9 of 1999 towards addressing the serious skills shortages
in South Africa
Training vs development
• Employee education – basic skills training programmes
• Specific training – employees gain information and skills
tailored specifically to their own workplace
• Training – acquisition of technically orientated skills by non-
management personnel
• Management development – associated with methods and
activities designed to enhance the skills of managers/future
managers
Training vs development
(continued)
• Training • Development
– Technical skills – Broad range of
– Non-management skills
– Short run – Management
– Long run
– Continually
throughout career
Shift
• Training and development
TO
• Learning and development
Traditional managerial
skills
Top
management
Middle Technical Conceptual Human

management Skills Skills relations
skills
First-line
management
Skills
• Technical skills include knowledge of equipment,
work methods and work technologies
• Conceptual skill is the ability to view the
organisation as a whole and to coordinate and
integrate a wide array of organisational functions,
activities, goals and purposes
• Human relations skills. One popular definition of
a manager is “one who accomplishes his or her
work through others”
Purpose of T&D
• Improve performance - employees who perform
unsatisfactorily because of a deficiency in skills are
prime candidates for training
• Update employees’ skills - managers in all areas
must always be aware of technological advances that
will make their organisations function more effectively
• Avoid managerial obsolescence - rapidly changing
technical, legal and social environments have affected
the way managers perform their jobs, and management
personnel who fail to adapt to these changes become
obsolete and ineffective
• Solve organisational problems - managers are
expected to attain high goals in spite of personal
conflicts, vague policies and standards, scheduling
delays, inventory shortages, high levels of absenteeism
and turnover, labour-management disputes and a
restrictive legal environment
Purpose of T&D
• Orient new employees - new employees form
their initial impressions of the organisation and its
managers. These impressions may range from very
favourable to very unfavourable, and may
influence their job satisfaction and productivity
• Prepare for promotion and managerial
succession - training enables an employee to
acquire the skills needed for a promotion
• Satisfy personal growth needs - T&D can play
a dual role by providing activities that result in
both greater organisational effectiveness and
increased personal growth for all employees
T&D priorities in the 21st
century
• Quality improvement programmes
• Technological change-related
programmes
• Customer service T&D
programmes
Strategic training
Stage 1: HR and training managers work with management to
determine the strategic linkage between training and the
Strategise strategic business plan
Stage 2: Training objectives and expectations of training should

be identified and specific measurable learning
Plan objectives created
Stage 3: Decide how training will occur and how much resources
will be needed
Organise
Stage 4: Evaluation of the process to determine to what extent

the goals set in stage 1 have been met
Justify
Systems approach to T&D
• Phase I – Needs assessment

• Phase II – Design & delivery of T&D
• Phase III - Evaluation
(continued)
• Phase I – Needs assessment
– Organisational analysis
– Operations analysis
– Individual analysis
• Advisory committees, Assessment centres, Attitude
survey, Group discussions, Questionnaires, Skills
test, Observations of behaviour, Performance
appraisals, Performance documents, Exit interviews
(continued)
• Phase I – Needs analysis

– Special case of T&D for managers
– Management succession chart
– Selecting needs-assessment
techniques
– T&D objectives
(continued)
– Training design principles of learning
• Motivation
• Participation
• Feedback
• Organisation
• Repetition
• Application
– Training delivery
– On-the-job training (OJT)
– Away-from-the-job training
– A T&D plan & implementation
(continued)
– OJT
• Enlarged & enriched job responsibilities
• Job instruction method
• Coaching
• Mentoring
• Committee assignments
(continued)
– Away-from-the-job
• In-house programmes
• Off-site programmes
(continued)
– Away-from-the-job
• Lecture
• Conference/discussion
• Vestibule/simulation
• Technology-based systems
• Case study
• Role-playing
• Management games
• In-basket exercise
• Assessment centre
• Membership of professional organisations
• Wilderness training
• Behaviour modelling
• Sensitivity training
• Packages of T&D programmes
(continued)
• Phase III – Evaluation
– Levels of evaluation:
• How did participants react?
• What did participants learn?
• How did participants’ behaviour change?
• What organisational goals were affected?
– Applying evaluation strategies
Successful T&D programmes
for managers
• Performance appraisal
• Long-range planning
• Top management support
• Climate for change
• Professional staff
The learning organisation
• Characteristics:
– Shift of emphasis from trainer to learner
ownership
– The whole range of leaning opportunities
within the organisation is recognised (on-
job, off-job, coaching, formal, informal,
multimedia, open and blended learning)
– Managers are encouraged to develop
coaching, mentoring and assessing skills
– Additional learning opportunities are
created for example: resource centres and
continuous learning
How can a learning organisation be
created?
Identify what currently exists: who has received training,
Stage 1
what qualifications have been taken, what T&D structure
is already in place within the company. Identify what
resources, facilities, budgets are available. Also
benchmark: how are other companies organised?
Stage 2 Identify the opportunities within the working environment

for coaching, mentoring and on-job training assessment.
Match this back to Stage 1; are managers trained to
coach, mentor and assess?
Identify pilot potential and a starting point: who is learning

Stage 3
what; what are the success criteria implications on the
budget, training requirements?
How can a learning organisation be
created?
Create an internal marketing plan, identify how to promote
Stage 4
the concept, who to involve.
The process starts, encourage people to take part, look at

Stage 5
the big picture across the organisation.
Review the pilot: identify how it matches the success

Stage 6
criteria. Promote success, for instance in a newsletter
about people's experiences. Ensure that there are
measures of where it is working, an audit of where leaning
is taking place. Importantly, review the process
continually. Ask the questions, Is it working? Is it working
everywhere? How can I as a trainer help the process?
What can the organisation do to help me help others?
training challenge
• Education & training

• Economic restructuring
• Better management practices
The South African
Qualifications Authority Act
No 58 of 1995
• In order to rectify the enormous shortage of
skilled manpower with the limited budgets
available, the South African government has
embarked on a number of innovative and
resourceful programmes:
– The merging of different education departments into
one controlling body
– The acceptance of an education policy that integrates
the education and training effort within the country
– Passing through parliament of the South African
Qualifications Authority Act, No. 58 of 1995, during
1995

The South African
No 58 of 1995
• Provides for the development and
implementation of a national
qualifications framework (NQF) designed
to give national recognition to learning
that takes place after compulsory
education to encourage the growth of
skills and redress the skills imbalance as
well as the values deficit in South Africa

The South African
No 58 of 1995
• Objectives of the Act:
– Create an integrated national framework for
learning achievements
– Facilitate access to, and mobility and progression
within education, training and career paths
– Enhance the quality of education and training
– Accelerate the redress of past unfair discrimination
in education, training and employment opportunities
– Contribute to the full personal development of each
learner and the social and economic development of
the nation at large

The South African
No 58 of 1995
• SAQA
– 6 Directorates
– Membership = 29
– 1 regional office
– Establishment of standards or qualification is
the function of the standards generating bodies
(SGB) which falls under national standards
bodies (NSBs)
– There will be 12 NSBs, covering 12 fields of
learning

The South African
• Functions: No 58 of 1995
– Oversees the development of the NQF
– Formulates and publishes the policies and criteria for:
• The registration of bodies responsible for establishing
education and training standards or qualifications
• The accreditation of bodies responsible for monitoring and
auditing achievements i.t.o the standards and qualifications
– Oversees the implementation of the NQF
– Accepts the responsibility for the control of the
Authority’s finances
– Advises the Minister on matters affecting the
registration of standards and qualifications

Unit standards
• A unit standard title • Learning assumed to be
• A SAQA logo in place before learning
• Registration number this unit standard
• Unit standard level on the NQF • Specific outcomes
• Credit attached • Assessment criteria for
• Field and subfield each specific outcome
• Issue date
• Accreditation
• Review date
• Purpose • Range statement
• Notes category

SAQA framework
SAQA
Standard-setting process Quality assurance process
•Registration of bodies •Accreditation of bodies

responsible for setting •Monitoring and auditing
standards standards
•Registration of
standards

Bodies instituted by the
SAQA Act
• South African Qualifications Authority (SAQA)
• National Standards Bodies (NSBs)
• Standards Generating Bodies (SGBs)
• Education and Training Quality Assurance
bodies (ETQAs)

Functions of NSBs
• Define & recommend to SAQA the boundaries
of the discrete field for which it is constituted
• Define & recommend to SAQA a framework of
subfields to be used as a guide for the
recognition and/or establishment of SGBs
• Recognise and/or establish SGBs within the
framework of subfields, or withdraw or rescind
such recognition or establishment
• Ensure that the work of SGBs meets the
requirements for the registration of standards
and qualifications as determined by SAQA
• Recommend the registration of standards on
the NQF to SAQA
Functions of NSBs
(continued)
• Recommend the registration of
qualifications to SAQA
• Update and review qualifications
• Define requirements and mechanisms of
moderation to be applied across ETQAs
• Appoint office-bearers, such as committees
and members of committees as required to
carry out the functions designated, in
consultation with SAQA
• Perform such other functions as may from
time to time be delegated by SAQA

Functions of SGBs
• Generate standards and qualifications in
accordance with SAQA requirements in
identified subfields and levels
• Update and review standards
• Recommend standards and qualifications to
NSBs
• Recommend criteria for the registration of
assessors and moderators/moderating bodies
• Perform such other functions as may from
time to time be delegated by its NSB

Functions of ETQAs
• Accredit constituent providers for specific standards or
qualifications registered on the NQF
• Promote equality amongst constituent providers
• Monitor provision by constituent providers
• Evaluate assessment and facilitation of moderation
among constituent providers
• Register constituent assessors for specified registered
standards or qualifications i.t.o the criteria established
for this purpose
• Take responsibility for the certification of constituent
learners

Functions of ETQAs
(continued)
• Cooperate with the relevant body/bodies appointed
to moderate across ETQAs
• Recommend new standards or qualifications to
NSBs for consideration, or modification to existing
standards/qualifications to NSBs for consideration
• Maintain a database
• Submit reports to SAQA
• Perform such other functions as may from time to
time be assigned to it by SAQA

ETQAs (continued)
• Once standards have been set,
education & training bodies (ETQAs) will
perform quality assurance and ensure
(through accreditation & monitoring)
that standards are maintained
• ETQAs – permanent, accredited
substructures of SAQA

ETQAs (continued)
• Five areas of responsibility have been identified as
the core roles of ETQAs:
– Standard setting (through feedback or facilitation
of NSBs)
– Quality assurance (through accreditation and
monitoring)
– Provision of training (few industry training boards
currently provide training)
– External linkages (with other industry training
boards)
– Capacity building (in terms of knowledge
provision and expertise)

Qualification registration on
the NQF
• Represent a planned combination/sequence of unit
standards/other learning elements
(courses/modules) that have clear purposes and
which will provide qualifying learners with an
overall outcome of demonstrable integrated
advancement in education and training
• Comply with the NQF’s objectives including
access, mobility, progression and quality. Here it is
necessary to show the critical outcomes have
been included to ensure a meaningful, integrated
qualification that meets the challenges of lifelong
learning and that has currency
• Be internationally comparable, where applicable

Criteria for generating
standards and qualifications
• Process criteria
– Scope
– Purpose
– Inclusivity
– Consultation
– International comparability and recognition
– Plans and management procedures

Criteria for generating
standards and qualifications
(continued)
• Systems criteria
– Analysis of current education and training
provision and standards in the subfield
– Analysis of trends
– Analysis of requirements of qualifying learners
and practitioners
– Statement of purpose of each of the unit
standards, standards and qualifications at the
level selected for standards generating activities
• Format criteria

Unit standards (continued)
• Primary uses of unit standards:
– Descriptions of end points of learning (towards
which learning programmes should aim)
– Descriptions of what must be assessed, in what
contexts, and the standard of performance
required
– A means of recognising achievements (records
of learning and/or competence portfolios will
indicate what unit standards and qualifications
have been achieved by learners)

Format for unit standards
• Title of the unit standard
• Logo
• Unit standard number
• Unit standard level
• Credit attached to the unit standard
• Field and subfield within which the unit
standard applies
• Issue date
• Review date
• Purpose of the unit standard

Format for unit standards
(continued)
• Learning assumed to be in place
• Specific outcomes
• Assessment criteria
• Accreditation process criteria
• Range statement
• Notes
• Embedded knowledge
• Critical cross-field outcomes

Format for qualifications
• Qualification title
• Qualification type
• Logo
• Registration number
• Level
• Total credit value
• Field and subfield
• Issue date
• Review date
• Purpose

Format for qualifications
(continued)
• Learning assumed to be in place
• Exit level outcomes
• Embedded knowledge
• Critical cross-field outcomes
• Assessment criteria
• Accreditation process criteria
• Range statement
• Notes

Purpose of the SDA 97 of
1998
• To develop skills of the SA workforce
• To increase the levels of investment in education and
training in the labour market and to improve return
on investment
• To use the workplace as an active learning
environment
• To provide employees with the opportunities to
acquire new skills
• To provide opportunities for new entrants to the
labour market to gain work experience
• To employ persons who find it difficult to be
employed
• To encourage workers to participate in leadership
and other training programmes

Purpose of the SDA 97 of
1998 (continued)
• To improve the employment prospects of
persons previously disadvantaged by
unfair discrimination and to redress those
disadvantages through training and
education
• To ensure the quality of education and
training in and for the workplace
• To assist work-seekers to find work,
retrenched workers to re-enter the labour
market and employers to find qualified
employees
• To provide and regulate employment
services
Institutions established by
the SDA
• National Skills Authority
• National Skills Fund
• Sector Educational and Training
Authorities (SETAs)
• Labour Centres
• A Skills Development Planning Unit

Functions of the National
Skills Authority
• Advise the Minister of Labour on
– A national skills development policy and strategy
– Guidelines on the implementation of the national skills
development strategy
– Allocation of subsidies from the NSF
– Any regulations to be made
• Liaise with SETAs
• Report to the Minister on the progress made in
the implementation of the national skills
• Conduct investigations on any matter arising out
of the application of the SDA

Functions of SETAs
• Develop a sector skills plan within the
framework of the national skills
• Implement its sector skills plan by
– Establishing learnerships
– Approving workplace skills plans
– Allocating grants in the prescribed manner to
employers, education and training providers
and workers
– Monitoring education and training in the sector
• Promote learnerships by identifying
workplaces for practical work experience

Functions of SETAs
(continued)
• Support the development of learning
materials
• Improve the facilitation of learning
• Assist in the conclusion of learnership
agreements
• Register learnership agreements
• Liaise with the NSA on
– The national skills development policy
– The national skills development strategy
– Its sectoral skills plan

Functions of the Skills
Development Planning Unit
• Research and analyse the labour
market in order to determine skills
development needs
• To assist in the formulation of the
national skills development strategy
and the sector skills development plans

Functions of Labour
Centres
• Provide employment services for
workers, employers and training
providers – improvement of services to
rural communities
• Register work-seekers
• Register vacancies and work
opportunities

Workplace skills plan: a
process flow
• Refer to Figure 10-11 on page 340

Summary
• T&D is important in the achievement of organisational
objectives. Through training, employees gain skills, abilities,
knowledge and attitudes that help them perform more
effectively in present and future jobs. As such, T&D may be
considered an investment in human resources that will provide
many important benefits and returns to the organisation.
• T&D serves the organisation by performing a number of
important functions: (1) improving performance; (2) updating
employee skills; (3) promoting job competency; (4) solving
problems; (5) preparing for promotion; and (6) orienting new
employees.
• The training process includes three distinct but related phases:
needs assessment, design and delivery and evaluation. Each
phase is important for successful T&D and none can be omitted.
• T&D must reflect certain principles of learning to be successful.
The following principles hold: The trainee must be motivated,
the trainee must get feedback on his or her progress, the
material must be well organised, the trainee must be able to
practise and learning must be transferred to the job
environment.
Summary
• Effective T&D includes a balance of both on- and away-from-
the-job activities. Individual programmes should be created,
particularly for managers, and should be built on current
strengths and weaknesses, career potential and personal needs.
• T&D administrators should make every effort to evaluate T&D.
Only through a sound evaluation will trainers obtain support
from top management and show how T&D improves
organisational effectiveness. Major T&D efforts should include
the following levels of evaluation: reaction, learning, behaviour
change and results. Evaluation should focus primarily on how
the trainee’s performance improves after completion of training.
• Both line and staff trainers must be aware of the legal
environment surrounding the T&D function. Race, religion, sex,
colour, national origin or age must not be a factor in
determining who receives training or who is selected to be
developed for promotional opportunities. The only exception to
this rule is where an organisation has an approved affirmative
action programme.
Summary
• Technical, conceptual and human relations skills provide the
foundation for all management jobs, although the mix of the
three skills will vary considerably according to management
level. T&D professionals should become knowledgeable about
how the skills and abilities for effective management vary
among low, middle and top management.
• All HRD professionals should become familiar with the
behavioural patterns of obsolescent managers and determine
the extent to which the problem of obsolescence pervades the
organisation.
• T&D involves close cooperation between line and staff
personnel, and each must recognise their shared authority.
• Various Acts were promulgated by the Government towards
addressing the serious skills shortages in South Africa, the
South African Qualifications Authority Act No 58 of 1995, the
Skills Development Act No 97 of 1998 and the Skills
Development Levies Act No. 9 of 1999.

Chapter 11 –
Managing
compensation &
benefits
Chapter outcomes
• Explain the link between pay, motivation and
performance
• Define job evaluation and discuss four popular
methods of performing it
• Develop a time-based pay system using pay
grades and steps
• Discuss three types of individual incentives
• Discuss why gainsharing, profitsharing and
employee stock ownership plans (ESOPs) have
grown as organisational incentive plans
• Understand executive compensation methods
• Understand the growth of employee benefits
and their organisational objectives
Definitions
• Compensation often used interchangeably with
wage and salary administration
• Compensation is a broader concept
• Compensation refers not only to extrinsic
rewards such as salary and benefits, but also to
intrinsic rewards such as achieving personal
goals, autonomy and more challenging job
opportunities
• Wage and salary administration usually
refers strictly to the monetary rewards given to
employees
Hourly wage
Monetary Salary
rewards Bonuses
Commissions
Pay incentives
Extrinsic Insurance
rewards Retirement
Compen- Benefits
Paid holidays
sation of Paid public holidays
employees Food services
Medical
Recreation
Recognition
Intrinsic Promotion opportunities
Working conditions
rewards
Interesting work
Compensation objectives
• Attracting employees
• Retaining good employees
• Motivation
• Legal considerations
Objectives of a compensation
system
Wage survey to determine the “going
1. Attract good applicants rate” in the labour market
2. Retain good applicants Job evaluation system that employees

perceive as “equitable”
3. Motivate employees Reward good performance
4. Comply with the law Documentation of HR records

Government legislation
Motivation and
performance model
Feedback to employee
Emplo- Re- Employee

Employee sets yee wards
Performance is considers equity
expectations
performs evaluated are of performance
and goals
job given rewards
Employee sets new goals and expectations based

on prior experiences
Job evaluation (JE)
• Process of systematically analysing jobs
to determine the relative worth of jobs
within the organisation
• Result is a pay system with pay rates
for each job depending on the status of
the job according to the hierarchy
• Does NOT review the employees in the
job but the worth of the position
Job evaluation (JE)
(continued)
• JE methods:
– Job ranking
– Factor comparison
– Classification method
– Point method
– Patterson method
– Hay method
– TASK
– Peromnes
Job evaluation (JE)
(continued)
• Job evaluation committee

• Outside assistance
Pay systems
• Time-based systems
• Person-based systems
• Performance-based systems
Guidelines for incentive
plans
• Bold incentives
• Emphasis on team performance
• Quick feedback
• Above-average base
• Simple formula
Incentive plans
• Problems with incentive plans
• Different types:
– Cash profit-sharing
– Stock ownership or options
– Business incentives
– Productivity/gain-sharing
– Team/group incentives
– Individual performance awards
– Special recognition awards
Executive compensation
• 4 forms of pay:
– (1) Base salary
– (2) Annual bonus
– (3) Long-term incentives
– (4) Benefits and perquisites (“perks”)
• Golden parachutes
• Stock options
Benefits
• Types of benefits
• Benefits required by law:
– Unemployment insurance
– Compensation for injuries and diseases
• Voluntary benefits
• Paid time off
• Insurance
• Employee services
Total benefit planning
• Flexible benefit plans
– Cafeteria plan
– Buffet plan
– Alternative dinners plan
Advantages of flexible
plans
• Meet diverse needs of employees
• Control benefit costs
• Improve benefits offered
• Attract and retain employees
• Avoid unions
• Avoid duplicate coverage
Summary
• Organisations use both extrinsic and intrinsic rewards to
compensate employees for their time and effort. Pay
systems are designed to attract, retain and motivate
employees while complying with government legislation.
• Job evaluation is used to evaluate jobs systematically and to
assign them to pay grades. The HR specialist strives to
maintain a pay system that employees view as equitable,
both internally and externally. Standard methods of
evaluation include ranking, classification, point and factor
comparison. Each offers different advantages.
• Pay systems are usually designed to compensate people for
the amount of work they produce (piecework), the skills they
learn and use or the time they spend on the job (hourly and
salaried). Most employees in South Africa are paid through
time-based systems.
• Individual employee, team-based and organisationwide
systems, such as profit-sharing and gainsharing, are
replacing automatic pay increases to relate pay to
performance. Human Resource Management in South Africa 3/e
Summary
• Executive compensation has become a complex area of
HR functions. Top executives often receive
compensation in as many as four areas, including
salary, bonuses, long-term incentives and benefits.
• Employee benefits are not just a fringe cost to
employers; they represent a substantial percentage of
the total payroll. Benefits are usually awarded to all
workers or on a seniority basis.
• Certain benefits are required by law, including
unemployment insurance and compensation for injuries
and diseases.
• Retirement income is provided through
private/government pension plans and personal
savings. Employers believe that they directly or
indirectly provide all these sources - which constitute
Summary
• Health insurance programmes provided by
employers have expanded to include
life/disability insurance, as well as the
traditional medical and hospitalisation
coverage.
• Paid time off from work represents a major
benefit cost.
• Flexible benefit plans are of great interest to
employers because they help contain benefit
costs and provide employees with more
individualised benefit programmes.
• Changing employee demographics have caused
employers to offer childcare programmes to
help employees meet their family needs.
Chapter 12 –
Health & Safety

Chapter outcomes
• Differentiate between stress and burnout
• Discuss the essentials for an effective
employee assistance programme (EAP)
• Name several work related consequences of
alcohol and drug abuse
• Discuss the impact of Aids on the workplace
• State the purpose of the Occupational Health
and Safety Act and discuss its major provisions
• List several specific things an organisation can
do to help reduce violence in its workplace

Definitions
• Health – general state of physical,
mental and emotional well-being
• Safety – physical safety of employees,
prevention of injuries and accidents

Stress
• Stress - a discrepancy between an
employee’s perceived state and
desired state, when such a
discrepancy is considered
important by the employee
• Influences two behaviours:
– The employee’s psychological and
physical wellbeing
– The employee’s efforts to cope with
the stress by preventing or reducing it
Forms of stress
• Eustress (positive) – accompanies
achievement and exhilaration
• Distress (negative) – harmful, have a
sense of loss of feelings of security
and adequacy
• Helplessness, desperation and
disappointment turn stress into
distress
What causes stress?
• Stress is never the result of one
single cause
• Interrelated factors/stressors:
– Pressure at work
– Too many social commitments;
– An uncomfortable living or working
environment; or
– An inability to organise and manage
your time effectively.

Controlling stress
• Organisational policies & • Personal strategies:
strategies:
– Meditation
– Preventive management
– Maintaining a productive – Exercise
culture – Removing the
– Management by objectives causes of stress
– Controlling the physical – Becoming a mentor
environment
– Seeking counselling
– Employee fitness facilities
– Extended leave

Burnout
• More than stress, it occurs when a

person believes they cannot or will
not continue to do the job

Symptoms of employee
Physical
burnout
Emotional Behavioural
Change in physical Depressed Productivity
appearance appearance Tardiness
Complaints eg Appearing bored  Frequent
headaches absenteeism
Attitude of cynicism,
Absenteeism resentfulness, Withdrawal
apathy or anxiety
Symptoms of Expressions of
depression Expressions of irritability/hostility
frustration or
Frequent Overworking
hopelessness
infections
Abuse of drugs/alcohol
Smoking
Excessive exercise

Steps to mitigate the
occurrence of burnout
1. Acknowledge the problem
2. Train managers
3. Time limits
4. Recognise people’s contributions
5. Provide emotional outlets
6. Provide retraining

Employer healthcare
programmes
• Employee assistance
programmes (EAPs) – designed
to help employees overcome
personal crises such as alcoholism,
job burnout or family problems

Essentials for an effective
EAP
• Confidentiality
• Normal disciplinary procedures
• Voluntary participation
• Job security
• Insurance coverage
• Management support
• Accessibility
• Follow-up
• Separate location
Employer healthcare
programmes (continued)
• Wellness programmes – wider focus
than traditional company fitness
programmes
• 3 components:
– Helps employee to identify potential health
risks through screening
– Educates employees about such health risks
– Encourages employees to change their
lifestyles through exercise, good nutrition
and health monitoring
Most popular wellness
activities
• Smoking cessation
• Health-risk appraisals
• Back care
• Stress management
• Exercise/physical fitness
• Off-the-job accident prevention
• Nutrition education
• Blood pressure checks
• Weight control
Substance abuse
• Alcohol abuse
– Reducing alcoholism
• Drug abuse
• SANCA steps to reduce alcoholism &
drug abuse:
1. Confront individual in firm & supportive
manner
2. Disclose factual evidence
3. Promote communication
4. Consult a professional if needed

Smoking
• Negative effects well documented
• Damage to non-smokers
• 1 January 2001 – declaration of the
workplace as a public place
• Written policies on smoking

AIDS
• Social & organisational ramifications 
proactive organisational policy
• Failure to deal with AIDS in the workplace
may bring about the following costs:
– Absenteeism and worker attrition
– Employees will require time off to care for sick
family members
– Compassionate leave
– Time off to attend funerals
– Productivity will decline
– Supply & cost of labour
– Higher recruitment and training costs

Safety management
• Benefits of safety programmes:
  Insurance premiums
 Related legal expenses
– Savings in salaries/wages and
benefits of injured workers
 Overtime and training of new
workers
 Productivity

Occupational injuries &
illnesses/diseases
• Cumulative trauma disorder (CTD)
• Sick building syndrome
• Occupational diseases

Occupational safety & health
administration
• Occupational Injuries and Diseases Act 83 of
1993 (OHSA) purpose:
– To provide for the health and safety of persons at
work & persons in connection with the use of plant
and machinery
– The protection of persons other than persons at work
against hazards to health and safety arising out of or
in connection with the activities of persons at work
– To establish an Advisory Council for occupational
health and safety

administration (continued)
• Occupational Injuries and Diseases Act 83
of 1993 (OHSA):
– Overall aim:
• Provide for the health & safety of employees at
work
– Who is excluded from this Act?
• Parties covered by the Merchant Shipping Act
• People employed in mines, mining areas or any
works defined in the Mine Health and Safety Act
29 of 1996

•Duties of employer •Duties of employees
–Providing safe systems – Take care of his or her
of work, plant and own health and safety &
machinery of other persons who
–Eliminating hazards may be affected by his/
–Arranging for the safe her actions/negligence
production, processing, to act. This includes
use, handling, storage playing at work.
or transport of articles – Cooperate with the
or substances employer
–Providing information, – Give information to an
instructions, training inspector from the DoL
and supervision if required
required to ensure the
necessary safety – Carry out which the
employer or authorised
person prescribes
•Duties of employer •Duties of employees
– Not permit an employee to – Comply with rules & procedures
perform any work unless employer gives
precautionary measures have – Wear prescribed safety
been taken clothing/use prescribed safety
– Ensuring that requirements of equipment where required
the Act are complied with by – Report unsafe/unhealthy
all employees conditions employer/health &
– Ensuring that work is safety representative asap
supervised by persons trained – If he/she is involved in an
to understand hazards of the incident that may influence
work health/cause an injury, report
– Informing all employees of that incident asap, but no later
their duty under the Act than by the end of the shift

OHSA 85 of 1993
(continued)
• Advisory Council for occupational health
& safety
• Health & safety representatives
• Duties of health & safety representatives
• Health & safety committees
• Reporting of incidents
• Occupational diseases
• Inspectors
• Victimisation

Nosa international
• Offices in 5 continents
• Involved in training, education and
motivation of employees at all levels of
employment in mining industry and
commerce
• Publishes monthly magazine (Safety
management), monthly newspaper
(Workers life) and newsletter twice a
month (World@Nosa)

Workplace violence
• Avoid falling victim to violent incidents in
the workplace:
– Hire carefully - screen out employees whose
histories show a propensity to violence
– Draw up a plan and involve employees -
develop a plan for preventing violence and for
dealing with it if it does occur
– Adopt a "zero tolerance policy" - the
perpetrator of the violence will be dealt with
– Enlist the aid of professionals - external
resources should be used when a potential
problem reveals itself

Summary
• Job stress is a pervasive problem in our society. It
may result in low productivity, increased
absenteeism and turnover, and other employee
problems including substance abuse, mental health
problems and cardiovascular illnesses. Strategies
to control stress include fitness programmes,
meditation, counselling and leave.
• EAPs can help employees overcome serious
problems that affect productivity. Employers can
retain highly skilled and valuable employees who
suffer from alcoholism, drug abuse, depression,
family problems or other common crises. But
normal disciplinary procedures should be followed
when an EAP is provided. Employee participation
may be strongly encouraged
Human but
Resource Management in South Africaultimately
3/e the
employee mustbyvoluntarily seek help.
Grobler, Wärnich et al ISBN 1-84480-328-7
Summary
• The Occupational Health and Safety Act requires
employers to keep records of employee injuries
and illnesses. Employers should ensure that
relevant OHSA regulations are met. Organisations
can benefit from a safe workplace through
reduced insurance premiums, fewer lost worker
hours and fewer accident claims.
• Policies on smoking in the workplace, drug usage
and AIDS are being developed by many employers
as these issues generate greater interest in our
society. However, while more employers are
adopting a smoking ban, few are adopting an AIDS
policy.
• Security of workplaces has group in importance
particularly in light of the
Human Resource Management increasing
in South Africa 3/e
frequency in
which workplace violence © 2006 Thomsonoccurs.
Learning
The environment
for HR
Finding & placing

qualified workers
Assessing & developing

qualified workers
CHAPTER 13:
4 Labour relations The Union–management
relationship, employee
discipline and dismissal
Emerging HR
practices
Chapter 13 –
The Union–
management
relationship,
employee discipline
and dismissal

Chapter outcomes
• Describe what a union is and explain why
employees join unions
• Understand the basic elements of the Labour
Relations Act, No 66 of 1995 as well as the
Labour Relations Amendment Act No 12 of
2002
• Discuss the role and objectives of the
National Economic Development and Labour
Council (NEDLAC)
• Describe the typical collective bargaining
process

Chapter outcomes
• Recognise the various sources of poor
performance through the illustration and
discussion of an unsatisfactory performance
model
• Explain both good and poor ways to discipline
employees
• Illustrate a model of positive discipline and
describe the procedures for ensuring that
discipline achieves its goals
• Identify the procedures for carrying out the
dismissal decision humanely and tactfully and
according to the law

Trade unions, collective
bargaining and grievance
procedure
• Trade unions
• Employers’ organisations
• International Labour Organisation (ILO)
• Labour Relations Act 66 of 1995
• NEDLAC
• Collective bargaining

Labour relations
management
....that part of management that

encompasses a study of those factors and
dynamics that emanate from, and are
related to, employment relationships.

The role players in labour
relations
The State
Secondary Secondary
relationship relationship
Employee Employer
(trade union) (management)
Primary
relationship
Trade union
.... an ongoing permanent organisation established by the

workers to protect themselves in their work, to improve their
working conditions through collective bargaining, to try to
improve their living conditions and to offer a mechanism by
which workers can put their standpoints.

Primary goal of a trade
union
... to promote the interests of its membership

through collective bargaining (standard of
living and working conditions).

Trade union goals
• Union security
– Closed shop
– Agency shop
• Job security
• Improved economic conditions
• Working conditions
• Fairness and justice
• Social action

Kinds of unions
• Industrial unions
– National Union of metal Workers of South Africa
(NUMSA)
– National Union of Mine Workers (NUM)
• Trade/craft unions
– The South African Boilermakers’ Society
• Employee association
– Public Servants Association

• Why to join a trade • Reasons NOT to join a
union?
trade union
• Job security
• Cost
• Wages and benefits
• Working conditions • Union ineffectiveness
• Fair and just supervision • No co-worker support
• Mechanism to be heard • Political intimidation
• Need to belong
• Employer intimidation
• Union fails to meet
members’ needs

Trade union Trade union
registration obligations
• Independent • Bookkeeping
• Financial statements
• Address in the
• Annual audit
RSA
• List of members
• Name Minutes of meetings
•
• Constitution

Trade union rights
• Sufficiently representative trade unions
– Access to the workplace
– Union meetings at the workplace
– Stop-order facilities
– Leave for trade union activities
• Majority representative trade unions
– Election of shop stewards
– Disclosure of information

The shop steward
• Two-fold task
• Functions
– Enrol members
– See that agreements are adhered to
– Discuss complaints with management
– Look after the general wellbeing of union members
• Number of shop stewards
• Time off during working hours
• Disclosure of information

The formal dimension of
labour relations
• Constitution
• Labour Relations Act
• Basic Conditions of Employment Act
• Occupational Health and Safety Act
• Compensation for Occupational Injuries and
Diseases Act
• Unemployment Insurance Act
• Employment Equity Act
• Skills Development Act
• Skills Development Levies Act
Reasons for the new LRA
• Old Act no longer intelligible
• Inadequate collective bargaining
• No statutory support for worker participation
• Ineffective dispute resolution
• International standards
• Interim Constitution
• Needs of small businesses

Aims of the LRA
• Economic development
• Social justice
• Labour peace
• Democratisation of the workplace

Who is excluded from the
LRA?
• The National Defence Force
• The National Intelligence Agency
• The South African Secret Service
• Farm workers?
• Domestic workers?

Benefits for workers i.t.o the
LRA
• Trade unions
• Strike
• Picket
• Consultation
• Joint decision making
• Information
• Fair dismissals
• Protection against victimisation

Benefits for employers
i.t.o the LRA
• Employers’ organisations
• Lock-out
• Less production time lost
• Successful restructuring
• Joint problem-solving
• Effective adjudication
• Accommodation of small business needs

The Constitution and Fundamental
Rights
International
NEDLAC Labour Relations
Conventions
Act
Rights and obligations
of employees, unions, Promotion of collective
employers and Dispute resolution and
bargaining and worker
employers’ labour peace
participation
organisations
Freedom of association
Collective agreements CCMA
Organisational rights
Bargaining Councils Labour Court
Unfair dismissal
Statutory Councils Labour Appeal Court
Unfair labour practice
Workplace forums
Strikes and lockouts
Freedom of
association
Strikes and Organisational

lockouts rights
Rights and
obligations of
employees,
unions,
employers and
employers’
organisations
Unfair labour Unfair
practice dismissal

Promotion of
Collective Bargaining
collective
agreements Councils
bargaining and
Written agreement worker Established for a specific sector
Terms & conditions of participation in a specific geographical area
employment
Functions:
Between registered trade union(s)
(1) Collective bargaining
and employer(s)/employers’
(2) Dispute resolution
organisation(s)
Workplace Statutory
forums Difference?
Councils
Aims are to promote
(1) the interests of all employees
Established at request of
(2) participation and efficiency
union(s)/employers’
Functions: organisation(s) representing 30%
(1) Consultation + of employers/employees in
(2) Joint decision making sector & area
(3) Information sharing Function:
Dispute resolution
Establishment of
workplace forums
• > 100 workers in the workplace
• Only registered trade unions with majority
representation may apply to the CCMA
• Commissioner
• Establishment by collective agreement

Working of workplace
forums
• Regular meetings between employer and WPF
• Regular meetings between WPF and employees
• Yearly reports by management
• Union officials may attend meetings
• Dissolved by ballot

Labour
Appeal
Court
Councils
&
? ?
Dispute
private
resolution
agencie
and
s
labour
peace
CCMA Labour
? Court

NEDLAC
Management EXECUTIVE COUNCIL

Committee Summit
Secretariat Representatives of
The State
Organised labour
Organised employers
Development organisations
Chambers
Public finance
Trade and
and monetary Labour market Development
industry
policy
State, employer and union Community development

representatives representatives
The phases of the negotiation
process
PRE- POST-
NEGOTIATION/
NEGOTIATION/ NEGOTIATION/
INTERACTIVE
PREPARATORY ADMINISTRATIVE
PHASE
PHASE PHASE
Execution of
negotiation Agreements are
strategies and concluded, and the
Planning,
tactics, and maintenance of
preparation and
utilisation of relations and the
organisation
structures in order administration of
to achieve agreements follow
objectives

Bargaining strategies
• Distributive bargaining
• Integrative bargaining
• Productivity bargaining
• Concession bargaining

Contract format
• Union recognition and scope of the bargaining
unit
• Management rights
• Union security (eg. closed shop)
• Strikes and lockouts
• Job rights and seniority
• Wages
• Benefits and paid time off
• Safety and health
• Discipline, suspension and discharge
• Grievance handling
Bargaining impasse
• Assistance from third party
– Mediation
– Arbitration
• Union power tactics
• Employer power tactics

Strike
• Temporary
• Stoppage of work
• Collective action
• Means of expressing a grievance

Strikes: Procedural
requirements
• Dispute to bargaining/statutory council or CCMA
• 30 day waiting period
• 48 hours’ notice
• Ballot?

Types of strikes
• Economic strike
• Grievance strike
• Secondary/sympathy strike
• Wildcat strike

Other forms of industrial
action
• Sit down
• Slowdown
• Work-to-rule action
• Picketing
• Boycott

Grievance vs gripe
• Grievance
– A formal complaint by an employee concerning a possible
violation of the labour contract
• Gripe
– A complaint by an employee concerning an action by
management that does not violate the contract

Typical steps in a grievance
procedure Grievance procedure ends
Start of dispute settlement process if preferred, eg bargaining council,
mediation, conciliation, arbitration, judicial settlement or strike
Unsettled
Ruling at highest level 10
Step 5 Settled workin
(top management)
g days
Unsettled
Formal grievance investigation 7

Step 4 Settled workin
(committee with higher-level manager)
g days
Step 3 Unsettled
Second in writing 4
Worker & representative Manager from higher level Settled workin
g days
Unsettled
Step 2
First in writing Settled 48
Worker & representative Head of immediate supervisor
(record) hours
Unsettled
Step 1
Verbally Settled
Worker Immediate supervisor 24
(record) hours

Discipline, counselling &
dismissal
• Performance problems
• Discipline
• Disciplinary dismissal
• Outside misconduct

A model for analysing and
correcting unsatisfactory
1 performance Terminate
Define Train Discipline
performance
expectations 3 Select appropriate
corrective
Transfer/ approach(es)
demote Council/
2 Personal Change refer
problems the work Rehabilitate
Identify causes Rule

Lack of skills
or abilities
of unsatisfactory breaking
performance
Lack of
motivation

Incorrect discipline
• Punitive discipline
• Negative feedback
• Late intervention
• Inadequate definition
• Labelling employees, not behaviour
• Misplaced responsibility

Preventative discipline
• Match employee with job (selection, testing & placement)
• Properly orient employee to the job
• Provide training
• Clarify proper employee behaviour
• Provide frequent and constructive feedback
• Enable employees to address their problems

Steps in the process of
discipline

Administer corrective
counselling techniques

Administer progressive
discipline

Collect performance data

Communicate disciplinary
policy, procedure and rules

Define expected employee
behaviour

Clarify responsibility for
discipline
The hot-stove rule
• Immediate
• Warning
• Consistent
• Impersonal

Dismissal
• Automatically unfair dismissals
• Other unfair dismissals
– Substantive fairness (reason)
• Misconduct
• Incapacity
• Operational reasons
– Procedural fairness (procedure)
• Remedies
– Reinstatement
– Reemployment
– Compensation
Dismissal for misconduct
• Substantive fairness
– Contravene a workplace rule/standard?
– Rule/standard reasonable/valid?
– Employee aware of rule/standard?
– Rule/standard consistently applied?
– Dismissal appropriate sanction?
– Gravity of misconduct
– Nature of job/workplace
– Circumstances of employee/employer

Dismissal for misconduct
(continued)
• Procedural fairness
– Investigation
– Prior notice of charge & results of investigation
– Reasonable time for preparation
– State case (disciplinary hearing)
– Assistance and representation (union official or fellow
worker NOT legal representation)
– Written notification of decision
– Reasons

Dismissal for incapacity:
Incompetence
– Fail to meet performance standard
– Aware of required performance standard
– Fair opportunity
– Appropriate sanction
– Opportunity to improve
– No other alternatives

Dismissal for incapacity: Ill
health or injury
– Capable of performing work
– Extent of capability
– Adaptation of work circumstances
– Alternatives

Dismissal for operational
reasons
• “No fault” dismissals
– Valid economic reason
– Consultation
– Attempt to reach consensus
– Measures to avoid dismissals
– Method of selection
– Severance pay

Dismissal for operational
• reasons
Procedural fairness (continue)
– Disclose information
• Reason for dismissals
• Alternatives
• Number of employees affected
• Method of selection
• Time
• Severance pay
• Assistance
– Future reemployment
– Representations
– Consider and respond to representations
– Provide reasons
– Selection of employees according to set criteria
Summary
• A union has a major impact on an organisation’s management.
Many HR decisions must be shared with the union, and the labour
contract limits management’s flexibility for the length of the
agreement. Finally, poor relations between management and
labour may result in costly and stressful organisational conflict.
• The percentage of organised labour in South Africa has doubled
since 1985 to approximately 3 million. This represents about 40%
of the workforce.
• The goals of the unions have not changed dramatically since their
beginning. Important union goals include job security, improved
wages and benefits, favourable working conditions and fair and
just treatment for their members.
• The heart of the union structure is the local union, although the
national union provides important direction and guidance. The
local union often receives assistance from the national union
during the collective bargaining process.
• During the organising drive, the union attempts to convince
workers that they will be better off by organising. Management
tries to convince them that they are better off without the union.
Labour legislation provides a number of ground rules regarding the
recognition of a union inResource
Human the workplace.
Management in South Africa 3/e
Summary
• Relations between organised labour and management are
strictly governed by the Labour Relations Act, No. 66 of 1995.
Managers and HR administrators who work in unionised
organisations must be intimately familiar with this law.
• There are a variety of different collective bargaining strategies.
The most common form involves distributive bargaining, or
win/lose bargaining, although this strategy seems to be giving
way to more cooperative forms such as integrative bargaining
and productivity bargaining. Concessionary bargaining, or give-
back bargaining, has increased as a result of foreign
competition.
• The negotiation process involves a great deal of give and take
before an agreement is reached. A bargaining impasse may
cause a strike, lockout or other power tactic. However, more
often mediation or other third-party techniques will be used to
end the impasse.
• Grievance handling is a critical part of labour relations. The
multi-step procedure usually includes arbitration as a final step.
The grievance process can keep minor disagreements from
disrupting the workplace unnecessarily.
Summary
• Many reasons may cause an employee to perform
unsatisfactorily. Some of these reasons may be directly
attributable to management’s shortcomings or to some other
problem of the organisation. When attempting to determine the
cause of poor employee performance, managers should
recognise that the employee may not be responsible for the
unsatisfactory behaviour.
• Discipline should be applied only when it has been determined
that the employee is the cause of the unsatisfactory
performance. There are different approaches to the disciplinary
process; the most effective technique involves administration of
preventive discipline. If discipline must be administered, the
positive approach should be used.
• Corrective counselling is a particularly important part of the
positive discipline process. It helps build respect and trust
between the supervisor and subordinate and encourages the
employee to find his or her own solutions to problems. The
more the employee participates in the problem-solving process,
the greater the chances for a permanent improvement in
employee behaviour. Human Resource Management in South Africa 3/e
Summary
• Much of the supervisory resistance to change can be reduced
by training supervisors to follow the hot-stove rule. With this
technique, discipline is administered immediately, with a
warning, consistently and impersonally. HR managers must
ensure that supervisory training programmes provide
instruction in applying each of the hot-stove rules.
• Dismissal can be traumatic and costly for both the dismissed
employee and the organisation. The dismissal should be
thoroughly planned and carried out in a professional manner
and according to the law. It is particularly important that the
employee be given complete details regarding the dismissal,
including why it is taking place and how the dismissal is to be
carried out.
• For a dismissal to be fair it must be substantively and
procedurally fair.
The environment
for HR
Finding & placing

qualified workers
Assessing & developing CHAPTER 14:

qualified workers
Competency based HRM
CHAPTER 15:
Labour relations
HRM in virtual organisations
Emerging HR CHAPTER 16:

5
practices International HRM
Chapter 14 –
Competency-
based HRM

Chapter outcomes
• Identify the components of a total performance solution
• Define the concept "competency"
• Describe a competency-based HR transformation
• Summarise the process of identifying competencies for the
organisation
• Explain competency-based HR planning
• Discuss competency-based employee recruitment and
selection
• Outline competency-based training and development
• Describe competency-based performance appraisal
• List key aspects relating to competency-based employee
rewards

A total performance solution
• Nature of organisational performance:
– Driven from the top down, not from the bottom up
– Is the product of winning behaviour
– Winning behaviour can be effectively modelled by
competencies
– Is always about achieving specific measurable goals
that help the organisation to win
– Is defined by measurement
– Is shaped by the promise of rewards (and the fear of
punishment)

A total performance solution
Values Competitive
Business plans
Leadership Purpose market pressure
development
Perfor-
mance
Competen-
cies Goals
Technology Shareholder
Rewards
requirements

Competencies defined
• A behaviour, knowledge, skill or capability,
that describes the expected performance in
a particular work context (eg. job function).
When they are appropriately developed,
they are the standards of success that
support the strategic plan, vision, mission
and goals of the organisation

Simple definition
• Competencies are characteristics
that individuals have and use in
appropriate, consistent ways in
order to achieve desired
performance

capabilities
Individual Organisational
1 3
Technical Individual Organisation’s
functional core
competence competence
2 4
Social Individual’s Organisation’s
leadership ability capabilities

Competency-based HR
transformation – design
process
Planning & Strategic Implemen- Desired future
Discovery Architecture tation state
Why change? Prioritising Gaining
competencies approval
Discovery
Transitional
Sponsorship
management
Monitor
results
Communica-
tions
Enact
changes
Competency identification
Competencies Competencies Competencies
generated from generated from core generated from the
1 current & future 2 capabilities in leading 3 organisation’s strategy
trends firms
Synthetic list of
4 competencies and
scope
Generalisability, creation
of competency areas &
5 sorting of competencies
by areas
Validation of
competency
6 framework
Competency identification
methods
• The Job Competencies Assessment
method (JCAM)
• The Competency Menu method
• The modified DACUM method

Competency-based HRM
• Why HR?
• Competency-based HR planning
• Competency-based employee recruitment and
selection
• Competency-based training and development
• Competency-based performance appraisal
• Competency-based employee rewards

Comparison between
traditional and competency-
based HR
•Foundation • Employee training
• Main reasons for using subsystem
approach • Employee development
• Major challenges subsystem
• Role of the HR function • Performance
• HR planning subsystem management
• Employee recruitment & subsystem
selection
• Employee reward
processes subsystem

Summary
• The functional structure of many HR departments today
can be traced back to the functional expertise
possessed by its employees
• To embrace the new challenges facing the HR function it
will have to move away from its compliance mindset
and become more flexible
• The whole approach in the 1990s regarding the
improvement of organisational performance shifted to
the endorsement of people and their competencies
• Competencies are characteristics that individuals have
and use in appropriate, consistent ways in order to
achieve desired performance
• The shift to the competency-based HR focus will require
much more than merely reshuffling the current boxes
on the HR organisational chart
Summary
• The written description of all the competencies needed
within the organisation is known as a competency model
• A number of methods which can be used to identify
competencies within organisations can be found these
include: the job competencies assessment method
(JCAM), the competency menu method and the modified
DACUM method
• One of the drawbacks of identifying competencies is the
high costs involved. The process is also time-consuming
• To monitor the successful implementation of a
competency-based approach within an organisation a
capabilities audit must be undertaken
• Competency-based HR planning focuses on competency
inventory versus the traditional skills inventory
Summary
• Competency-based recruitment and selecting requires a more
extensive job analysis together with the examination of work
histories and work samples
• Competency-based training and development is a highly
individualised process. In the training needs analysis process a
much broader focus is required. Identifying future
competencies with a view of individual development can be a
major undertaking within a company
• A major criticism of the use of competencies in performance
appraisal is that they are not observable and measurable.
Some mechanism is therefore essential for assessing
competencies
• By linking compensation directly to individual contributions
that make a difference to the company an organisation can
maintain the highest calibre of workers.

Chapter 15 –
Human
Resource
Management in
virtual
organisations
Chapter outcomes
• Define the concept "virtual organisation"
• Identify three forms of virtual work
arrangements
• List the advantages and disadvantages for the
company and employee when implementing the
telecommuting work arrangement
• List the characteristics which truly identify a
virtual team
• List three types of virtual teams

Chapter outcomes
(continued)
• Discuss the advantages and disadvantages when
using technology such as e-mail, bulletin boards,
audio and video conferencing
• Discuss the role of the HR professional within the
virtual organisation
• Discuss issues relating to job analysis practices
within the virtual work environment
• Discuss issues relating to a number of HR practices
within the virtual work environment
• Explain how the traditional and virtual organisation
differs

Technology has:
• Prompted changes in company
structures (eg. virtual organisation)
• Modified work arrangements (eg.
virtual team)
• Influenced how people are
managed (eg. virtual workplace)

Virtual organisation
defined
• Virtual organisations are multi-site, multi-
organisational and dynamic. At the macro
level, a virtual organisation consists of a
grouping of units of different companies (eg.
other businesses, consultants, contractors)
that have joined in an alliance to exploit
complementary skills, in pursuing common
strategic objectives

Virtual organisation
(continued)
• Virtual organisations are characterised as those
organisations in which the ongoing relationships
with partners are salient
• Core business activities are reduced, leaving the
partners to focus on some of the key business
functions
• Core (or central organisation) is connected with the
partners through technology
• Virtual organisations tend to be characterised as
flexible, and their structure as transitory and fluid
• Many definitions of the concept tend to see groups
as important. Some appear to see virtual teams as
a sufficient condition for an organisation to be
called a virtual organisation

The virtual workplace
• Telecommuting
• Frontline model
• Cyberlink model
– Virtual teams:
• Group must have some charter for working
together
• Group must be interdependent
• Group must be committed to working
together
• Group must be accountable as a unit to
someone or something in the bigger
organisation
The virtual workplace
(continued)
• Cyberlink model (continued)
– Types of virtual teams:
• Project teams
• Service teams
• Process teams
– Why virtual teams?
– Cost benefits of implementing virtual
teams
– Complexity of virtual teamworking
– Technology for virtual teams

Factors that contribute to the
complexity of virtual
teamworking
• Number of team members
• Number of different languages spoken
in the team
• Number or organisations represented in
the team
• Number of time zones within the group
• Technical systems implemented

HRM practices in virtual
organisations
• Virtual HR departments
• The role of the HR professional in the
virtual organisation
• HR practices in virtual organisations
– JA
– Participants
– Methods of data collection
– Types of data and level of analysis

HRM practices in virtual
organisations (continued)
• HR practices in virtual organisations
(continued)
– Staffing
– Recruitment
– Selection
– T&D
– E-learning
– PA
– Compensation
– Negotiation

Important skills and
competencies needed in
virtual organisations
Shared sense of purpose
Operating guidelines
Team level Analysing & solving problems
Conflict management etc.
Dealing with change

Managing alignment
Flexibility
Co-ordinating activities
Adaptability
Emotional control Individual Managers Encourage continuous
learning
Willingness to learn etc.
Managing through
technology etc.

Advantages of e-learning
• Self-paced: trainees can proceed on their own time
• Is interactive, tapping multiple trainee senses
• Allows for consistency in the delivery of training
• Enables scoring of exercises/assessments and the
appropriate feedback
• Incorporates built-in guidance and help for trainees to use
when needed
• Is relatively easy for trainers to update content
• Can be used to enhance instructor-led training

Disadvantages of e-
learning
• May cause trainee anxiety
• Not all trainees may be ready for e-learning
• Not all trainees may have easy and uninterrupted
access to computers
• Not appropriate for all training content (eg.
leadership, cultural change)
• Requires significant upfront cost and investment
• No significantly greater learning evidenced in
research studies
• Requires significant top management support to
be successful

A model of virtual negotiation
characteristics
Possible 3rd
party
Party A Party B
Individual differences Individual differences
Personality, distributive vs Personality, distributive vs
integrative, sensitivity vs non- integrative, sensitivity vs non-
verbals, comfort with technology verbals, comfort with technology
Negotiation Negotiation dynamics

dynamics Personal disclosure,
Personal disclosure, entrenchment, flaming, ethics
entrenchment, flaming, ethicsCommunication media
Synchronicity, message
misinterpretation, message
content, information richness

Attributes of virtual and
traditional organisations
• Streamlined • Management of
• work & workers
Flexible
• Career path
• Focused
• Information
• Communication • Office building
• Hyper time • Professionalism
• Organisation • Customer relations
structure

Summary
• There is a fast-growing interest in another way of
working which combines changes, in technical and
organisational systems of choice. This is virtual
working and by extension virtual teams.
• Different types of teams within the virtual
organisation can be found namely: project, service
and process teams.
• The key for any company at the outset of a virtual
teamworking implementation is to be
technologically aware and open, not
technologically deterministic and closed.
• Success of virtual teams will not come from tight
managerial control, this inhibits the extent of the
interactions within theManagement
Human Resource network.
in South Africa 3/e
Summary
• The team will benefit most from acknowledging the fact
that they are all individuals, and then drawing on their
individual strengths to create a microcosm within the
wider organisation that embodies shared culture and
operating principle that they believe will enable them
to deliver the best results as a team.
• Virtual organisations will need to adapt their recruiting
processes to the changing skill base and nature of the
labour pool from which they are recruiting.
• For the virtual organisation with its geographically
dispersed global labour pools the traditional idea of
candidates having onsite testing batteries and
interviews is not practical.

Summary
• The virtual organisation's geographically dispersed
supervisors, peers and subordinates offer a unique
environment for understanding, performance
evaluation, monitoring the employee's outputs may
be a way of making performance evaluations work
under these conditions.
• In the area of compensation the following methods
may be used in the virtual environment, person-
based systems, broadbanding and classification.
• While the process of negotiation has been written
about extensively, little has been done regarding
this activity in the virtual environment. This
environment will dictate new rules for negotiating.

Chapter 16 –
International
HRM (IHRM)

Chapter outcomes
• Identify key forces driving the globalisation of organisations
• Identify the types of organisational forms used for
competing internationally
• Understand the different types of cultures found
• Explain how domestic and international HRM differ
• Discuss the staffing process for individuals working
internationally
• List and define four types of international employees
• List the different types of international assignments found
• Discuss issues relating to the induction of international
employees

Chapter outcomes
(continued)
• Identify the unique training needs for international assignees
• Reconcile the difficulties of home country and host-country
performance appraisals
• Identify the characteristics of a good international
compensation plan
• Explain the activities needed to increase expatriate
completion rates
• Discuss the key issues in industrial relations of multinationals
• Describe several international health, safety and security
concerns
• Discuss the importance of a global human resource
management information system

Main dimensions of IHRM
• Selection and recruitment of qualified individuals
capable of furthering organisational goals
• Training and development of personnel at all
levels to maximise organisational performance
• Assessment of employee performance to ensure
that organisational goals are met
• Retention of competent corporate personnel, who
can continue to facilitate the attainment of
organisational goals
• Management of the interface between labour and
management to ensure smooth organisational
functioning

Why do companies decide to
do business abroad?
• Desire to reduce costs
• Less government regulations pertaining
especially to pollution controls and safety
requirements
• Access to growth opportunities that are
not available at home
• Take advantage of labour force availability
eg. quantity as well as quality

Organisational firms used
internationally
• Exporting
• Licensing
• Management contracts
• Sole ownership
• Types:
– Multinationals
– Global
– International
– Transnational

What types of cultures are
found around the world?
• What is culture?
– The shaping of the mind that
distinguishes the members of one
group/category from those of another
• Identifying international cultures

What impact does going abroad
have on the activities of HR
professionals?
• More functions
• More heterogeneous functions
• More involvement in employees’
personal lives
• Change in emphasis as the
workforce mix varies
• More external influences

Environmental forces
National forces
Economic
Political forces
forces
HR systems
Policies/procedures
Recruitment Selection
Corporate Training Corporate
Motivation/reward
culture culture
systems Management
styles Career paths
Legal forces Labour

traditions
Recruitment
• Expatriates
• Ethnocentric approach
• Polycentric approach
• Regiocentric approach
• HCN
• TCN
• Geocentric approach
• Inpatriate

Reasons for expatriate
failure
• Inability of the manager's spouse to adjust to a
different physical or cultural environment
• The manager's inability to adapt to a different
physical or cultural environment
• Other family-related problems
• The manager's personality of emotional immaturity
• The manager's inability to cope with the
responsibilities posed by overseas work
• The manager's lack of technical competence and
• The manager's lack of motivation to work overseas

International assignments
• Length and duration:
– Short-term
– Extended
– Long-term
• Types:
– Commuter
– Rotational
– Contractual
– Virtual

Selection
• 4 different types of employees are normally
appointed to overseas positions:
– The chief executive officer (CEO), whose responsibility
is to oversee and direct the entire foreign operation;
– The functional head, whose job is to establish
functional departments in a foreign subsidiary;
– The troubleshooter whose function is to analyse and
solve specific operational problems; and
– The operative, or rank and file

Selection (continued)
Factors to be considered when selecting candidates
for overseas appointments:
• Adaptability • Experience within the
• Diplomacy company
• Language ability • Interest in overseas
work
• Communication skills • Initiative and
• Managerial talent creativity
• Maturity & emotional • Previous overseas
stability experience
• Leadership skills • Age
• Cultural sensitivity • Stability of marital
• Technical knowledge relationship
• Spouse’s and family’s
adaptability
Induction
• Traditional people involved still
remains valid
• Need for additional background
information (eg. cultural practices,
language etc.)
• For longer projects local induction is
also important

Training & Development
• Preparation of expatriates:
– Training of expatriates before, during
and after foreign assignments
– Orientation and training of expatriate
families before, during and after foreign
assignments
– Development of the headquarters staff
responsible for the planning,
organisation and control of overseas
operations
(continued)
• Techniques are categorised into 5
groups:
– Area studies or documentary
programmes
– Cultural assimilation
– Language preparation
– Sensitivity training
– Field experiences

(continued)
• Many companies neglect T&D of expatriates for
the following reasons:
– Training is not thought to be effective
– The period of time between selection & expatriate's
departure is short, leaving little time to expose him
or her to in-depth training prior to departure
– The temporary nature of most assignments does not
warrant budget expenditures for training
– The individual dimensions needed for successful
acculturation are not well enough known to devise
sound training programmes
– There is a belief that technical skills are the main
success factors for assignments abroad

Performance appraisal
• Performance appraisal (PA) is a
fundamental management tool that can
be useful as a basis for functions such
as:
– Making administrative decisions regarding
personnel actions (eg. promotions and
transfers and support for taking disciplinary
actions or terminations);
– Providing feedback to employees regarding
their performance;
– Coaching employees in improving areas of
weakness and building upon their areas of
strength
Performance appraisal
(continued)
• Value of PA can be increased by
planning, ongoing performance
monitoring and employee development
• Cultural issues
• Choice of evaluator
• Evaluator’s amount of contact with the
expatriate
• Host country’s management perception
of performance
• Long-distance communication
• Inadequate establishment of
performance objectives
Retention of personnel
• Compensation
• Repatriation

Labour relations
• Approaches to follow:
– Hands-off
– Monitor
– Guide and advise
– Strategic planning
– Set limits and approve exceptions
– Managed totally from headquarters
– Interface of headquarters, international human
resource and line management in the field

Discipline & dismissals
• Differ in countries
• Compensation
• Companies should be well
acquainted with the legal
implications of international staff

Transfers, lay-offs and
retirement
• Movement of people as part of
development
• Cultural differences and language
• Legal implications

Health, safety & security
issues
• Ensure that the employees have a record of their
vaccinations against infectious diseases
• Include on over-the-counter first aid kit - this is very
popular with South African executives travelling into
Africa
• Arrange emergency plans in cases where employees
have no local medical facilities, for example, flying
them out by private plan
• If employees are staying in countries that are not very
safe, companies should provide floodlights around the
offices and homes, as well as electronic safety
systems

Global HRISs
• Development
• Labour unions
• Staffing flow
• Reward systems

Summary
• Globalisation of business continues to grow after
1994 when South Africa became a full member
of the international community again.
• Organisations doing business internationally
may evolve from organisations engaged in
exporting activities to multinational enterprises,
global and transnational organisations.
• Legal, political, economic and cultural factors
influence global HR management.
• One scheme for classifying national cultures
considers power distance, individualism
masculinity/feminity, uncertainty avoidance and
long-term orientation.

Summary
• Staffing global jobs can be done using
expatriates, host-country nationals and third
country nationals.
• Global assignments can be used for a number
of reasons and for varying durations.
• The selection of employees should consider
cultural adjustment, organisational
requirements, personal characteristics,
communication skills and personal/family
factors.
• Once selected, the assignments of global
employees must be managed through both
effective expatriation and repatriation.

Summary
• Training and development for employees focus on
pre-departure orientation and training, continued
employee development and readjustment training
for repatriates.
• Compensation practices for employees are much
more complex than those for domestic employees
because of the numerous factors to be considered.
• To balance the pros and cons of home-country and
host-country evaluations, performance evaluations
should combine the two sources of appraisal
information.
• Labour-management relations vary from country
to country.
• Global organisations must be concerned about the
health, safety and security of their employees.


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1 The environment

Finding & placing Foundation & challenges for

• Authority • Has high status and authority

• Decision • Is involved in making • Makes operational

• Integration • Is fully integrated with other • Has moderate to small

Input Transformation Output

Employee information Software Reports

Step 1 Step 2 Step 3

General turnover Demographic

The production process

Utilisation & efficiency

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Job openings identified

Job success criterion

Reference checks Job

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Formal induction Informal induction

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Finding & placing Performance management &