Chapter 12 Human resource management.pptx

Introduction to Business Management (BEC121E) Bramwell K Gavaza Chapter 12: Human resource management and the South African labour legislative framework Learning outcomes On completion of this chapter, you should be discuss t...

Introduction to Business Management (BEC121E) Bramwell K Gavaza Chapter 12: Human resource management and the South African labour legislative framework Learning outcomes On completion of this chapter, you should be discuss the process theories of motivation able to: evaluate the different motivation strategies describe the basic steps involved in human discuss the implication of the new digital resource planning world of work on human resource explain how companies use recruiting to find management qualified job applicants identify the new skills needed by human describe the selection techniques and resources to perform with the new digital procedures that companies use when world of work shortlisting job applicants understand the importance of the describe how to determine training needs Constitution of the Republic of South Africa, and select the appropriate training methods 1996 discuss how to use performance appraisal to describe the impact of the following acts on give meaningful performance feedback the management of human resources in describe basic retention strategies and how organisations: they affect human resource practice Labour Relations Act (No. 66 of 1995) describe the role of the human resource Basic Conditions of Employment Act function in organisations (No. 75 of 1997) Skills Development Act (No. 97 of explain the contribution human resource 1998) Introduction Human resource management (HRM) is the most important aspect of any organisation. Having the right people in the right job at the right time will give any organisation a competitive advantage. The process of finding, developing and keeping the right people through human resource planning remains one of the most difficult and important of all management tasks. Human resource management as a strategic partner Improve the skills base of employees and contribute to the profitability of the organisation. Every manager in the organisation should realise the importance of recruiting, selecting, training, developing, rewarding, assisting and motivating employees. Integration and teamwork are essential for organisational success. HR management and organisational effectiveness Assisting everybody in the organisation to reach organisational goals Making efficient use of the skills and abilities of the human resources Making sure employees have the necessary skills to function in a digital world of work Providing the organisation with well-trained and motivated employees Assisting in the attainment of the employees’ job satisfaction and self-actualisation Developing a quality of work life that makes employment in the organisation desirable Assisting with the maintenance of ethical policies and socially-responsible behaviour Managing change to the mutual advantage of individuals, groups, the organisation and the public Executing human resource functional activities in a professional manner Being involved in strategic decision making and strategy formulation of the organisation Aligning employee needs with organisational requirements. Who performs the human resource function? In large organisations, the human resource function is mainly co- ordinated by the human resource department. In smaller organisations that do not have human resource departments, the main human resource functions are performed by line managers, over and above their normal duties. As the organisation grows and increases in size, the line manager’s job is divided up, and some aspects, such as recruitment and selection, become more specialised. These duties are then dealt with by a human resource manager or practitioner. Human resource planning Identify the work required by the Phase 1 organisation Phase Human resource forecasting 2: Phase The human resource plan 3: Finding qualified talent Recruiti Recruitment from inside – HRIS ng Recruitment from outside The recruiting procedure Recruiti Advertisements Through personal approach ng Recruitment agencies Through existing method employees E-recruiting Sundry recruiting s strategies Figure 12.1 The phases in the selection process for a position in an organisation Talent selection Preliminary screening Intensive assessment Final selection On-boarding Developing talent Human resource development (HRD) The HR manager has the dual responsibility of ensuring that the company employs sufficient staff and of creating opportunities for employees to make themselves more valuable to the company. This activity can be subdivided in several ways, but a good method is to distinguish firstly between training and development, and secondly between technical training and management training. HRD activities should begin when an employee joins an organisation during the on-boarding process and continues throughout their career, regardless of whether that employee is an executive or a worker on an assembly line. HRD programmes must respond to job changes, and must integrate the long-term plans and strategies of the organisation to ensure the efficient and effective use of resources. Development methods On-the-job Job rotation Job instruction training training Job shadowing Coaching and developm Job enrichment Mentoring ent Apprenticeships Internships Away- Lectures E-learning from-the- Conferences or Case studies job discussions training Seminars Role playing and Vestibules or simulations In-basket exercise developm ent The danger of the ‘shotgun’ approach to development Indiscriminate approach to development → organisations do not take time to conduct a training needs analysis The successful HR manager attempts to obtain as much value as possible from development programmes: 1. They make a thorough analysis of the development needs that exist. 2. They ensure that training money is spent only on members of staff who show a potential for further development. 3. They make plans with the immediate superior of the employee concerned to utilise their new skills or insight in the work situation Performance appraisal The purpose of a performance appraisal is to determine how the employee has done in the following aspects: Performed exceptionally well (that is, surpassed the requirements for the job) Complied with the requirements for the job Not complied with the requirements for the job. The more objective this appraisal is, the more successful it is likely to be. The results of a performance appraisal can be used for four basic purposes: To provide a basis for financial rewards (performance bonuses) To determine whether the employee should be promoted to a higher level of work To provide the employee with feedback on how well they are doing To determine areas for training and development. Retaining talent Retention factors Extrinsic Intrinsic rewards rewards Exposure Access to Having to more Achieving Getting Maintainin training Salary Benefits flexibility challengin personal supervisor g work-life and within the g job goals support balance developme workspace opportuniti nt es Compensation of employee Output an employee receives for the input Indirect compensation (work) produced Compensation Reward Here are some important points to note when drawing up a compensation policy: 1. A decision must be made about how the company’s compensation in general should compare with that of the labour market. 2. A policy must be determined on a cost-of-living adjustment. 3. The compensation policy must determine which form rewards will take. Most companies reward by means of salary increases. Other companies, however, only give salary increases in accordance with the rise in the cost of living, and then give cash bonuses to reward good work performance. Motivating employees Content approach to motivation Herzberg’s Maslow’s two-factor McClelland’ Alderfer’s hierarchy theory and s theory of ERG theory of needs job needs enrichment Motivating employees Process approach to motivation Equity theory Goal-setting Expectancy and theory and theory organisational feedback justice Employee motivational strategies Employee involvemen Intrapreneu Job design t MBO rial programme incentives s Employee- Empowerm Training recognition ent Reward and programme programme systems education s s Career Employee manageme engagemen nt t Implications of the new digital world of work on human resource management Accelerated Flexible work business Increased A mobile arrangements innovation and workforce workforce and remote adoption of diversity working digital technologies Labour legislation that has an impact on the workplace The Constitution of the Republic of South Africa, 1996 It provides for the legislature (parliament), the judiciary (the courts of law) and the executive (national, provincial and local government) arm of state. The Bill of Rights protects a number of important fundamental rights. Section 23 of the Constitution of 1996 relates specifically to labour rights. Figure 12.2 Role players in labour relations The Labour Relations Act (No. 66 of 1995) (LRA) Freedom of association Organisational rights Bargaining and statutory councils The Commission for Conciliation, Mediation and Arbitration (the CCMA) The Labour Court and the Labour Appeal Court Strikes and lock-outs Collective agreements Agency shop agreements and closed shop agreements Workplace forums Unfair dismissals Communication: grievances and disciplinary aspects An effective grievance-handling procedure has many advantages: It is a safety valve that will release the tension and dissipate the latent aggression inherent in all businesses. It allows the raising and settlement of a grievance by a worker without fear of retribution or victimisation. It makes for an open and honest relationship between manager and worker. It allows managers to identify and remove legitimate causes of dissatisfaction or conflict. The disciplinary procedure The principles underlying the disciplinary procedure are as follows: The employer’s right to take disciplinary action against an employee who breaches a rule or standard governing conduct in the workplace The employee’s right to a fair procedure. The Basic Conditions of Employment Act (No. 75 of 1997) (BCEA) Introduction and application Working time Leave Remuneration, deductions and notice of termination Administrative obligations Prohibition of the employment of children and forced labour Variation of basic conditions of employment Employment Conditions Commission and inspectors The Employment Equity Act (No. 55 of 1998) (EEA) The prohibition of unfair discrimination, which applies to all employers Affirmative-action measures, which apply only to ‘designated’ employers The most important provisions of the Act are as follows: Employers are required to take steps to end unfair discrimination in their employment policies and practices Discrimination against employees or job applicants Medical and psychometric testing of employees is prohibited unless properly justified Employers must prepare and implement employment equity plans after conducting a human resource planning analysis and consulting with unions and employees Employers must take measures to reduce disproportionate income differentials progressively Employers must report to the Department of Employment and Labour on their implementation of employment equity The labour inspectors and the Director-General of the Department of Employment and Labour are responsible for enforcing equity obligations. The Skills Development Act (No. 97 of 1998) (SDA) Develop the skills of South African human resource planning Use the workplace as an active learning environment, to provide employees with the opportunities to acquire new skills and to provide opportunities for new entrants to the labour market to gain work experience Improve the employment prospects of persons previously disadvantaged by unfair discrimination, and to redress those disadvantages through training and education Ensure the quality of education and training in and for the workplace Help work seekers to find work, retrenched workers to re- enter the labour market and employers to find qualified These institutions are established by the Act: The National The National The SETAs Labour centres Skills Authority Skills Fund The The Quality Department of The National Council for Employment Artisan Trades and and Labour Moderating Occupations provincial Body (QCTO) offices The Skills Development Levies Act (No. 9 of 1999) Levy to be paid Payment of levy to Commissioner and refund Exemptions from the Act The National Qualifications Framework Act (No. 67 of 2008) (NQF) The verification of all qualifications or part–qualifications by the SAQA The formulation of criteria for evaluating foreign qualifications The establishment and maintenance of separate registers of misrepresented or fraudulent qualifications Separate register for professional designations The referral of qualifications or part-qualifications to SAQA for verification and evaluation Offences and penalties which have a bearing on fraudulent qualifications The Occupational Health and Safety Act (No. 85 of 1) (OHSA) According to this Act, employers have the following general duties to their employees: To provide and maintain a working environment that is safe and without risk to the health of employees To take whichever steps are necessary to eliminate any hazard or potential hazard to the safety or health of employees To provide any information, instructions, training and supervision as may be necessary to ensure the health and safety of all employees To take all necessary steps to ensure that the requirements of this Act are complied with To take any measures that may be necessary in the interests of health and safety To ensure that the work is performed and that this is done under the general supervision of a trained person To keep employees informed at all times. The Compensation for Occupational Injuries and Diseases Act (No. 130 of 1993) Employers must register and furnish the Commissioner with details about their businesses. They must keep records of all employees, wages paid and time worked for a period of four years. The record must be sent to the Commissioner each year. The Unemployment Insurance Act (No. 63 of 2001) (UIA) Contributors who lose their jobs are entitled (as are their dependants) to these benefits: Unemployment benefits Illness benefits Maternity or adoption benefits Dependant’s benefits. The Employment Services Act (No. 4 of 2014) Provides for public employment services that will play an active role in employment promotion in order to tackle high levels of unemployment. The Protection of Personal Information Act (No. 4 of 2013)53 (POPIA) The Act aims to promote the protection of personal information by private and public bodies and to provide for minimum conditions that should be followed in the lawful processing of information. Summary This chapter provided a brief overview of the activities associated with the human resource function in an organisation. The first part dealt with the recruitment and selection of talent to organisations, the human resource planning and job-analysis process, and the development of employees. The second part dealt with the importance of motivation in the workplace and considered various theories concerning ways to motivate employees. The chapter also discussed the implications of the new digital world of work on human resource management. The last part discussed the legal environment that influences human resource managers in an organisation, highlighting the importance of the Constitution as the supreme law of South Africa and giving a brief overview of the most important labour laws that line managers and human resource practitioners should take note of in the workplace.