2024 Wrap Up Session COHMAO-B22 PDF

COHMAO-B22 WRAP UP SESSION 2024 1. Exam Format Agenda 2. Introduction to HR What will be discussed today? 3. Key Focus Areas in Chapters 1,2,3, 4 and 11 2 EXAM FORMAT...

COHMAO-B22 WRAP UP SESSION 2024 1. Exam Format Agenda 2. Introduction to HR What will be discussed today? 3. Key Focus Areas in Chapters 1,2,3, 4 and 11 2 EXAM FORMAT 3 SECTION A (20 marks) Multiple Choice SECTION C (30 marks) Short Theory Questions Study chapters 1, 2, 3, 4 and 11. Study chapters 1, 2, 3, 4 Notes on myLMS and 11. Notes on myLMS SECTION B (20 marks) True and False SECTION D (30 marks) Scenario with Study chapters 1, 2, 3, 4 Application Questions and 11. Notes on myLMS Study chapters 3, 4 Notes on myLMS 4 INTRODUCTION TO HUMAN RESOURCE MANAGEMENT 5  What is Human Resource Management? Human resource management (HRM) is about effectively managing people within an organisation. The purpose is to maximise productivity by optimising the effectiveness of employees. This involves planning, recruitment, hiring, development, performance management and alignment with strategic goals of the core business. 6  An overview of Human Resource Management, definitions and differentiations Personnel Management versus Human Resource Management Personnel management refers to programmes designed by the employees of the personnel department for selection, training, compensation and career planning. In addition, it also refers to the practices that concern the administration and implementation of HRM policies. On the other hand, Human resource management is much broader than designing personnel programmes. Human resource management has a more strategic approach, forecasting the organisations needs and continuously monitoring and adjusting all systems. Further, it involves the total development if HR within the organisation, as well as the broader implications of changes and organisational development such as developing a culture that promotes both employee relations ad cooperation. 7  Roles of Human Resource Management Strategic business partner role - need to be fully involved in and understand the strategy of the organisation to align the HR (and employees’) goals to the strategic goals. Change management - involves working towards overcoming obstacles to change, sustaining change, and improving productivity. Promote E-HRM - use technology to manage human resources. It can save money, increase efficiency and increase accuracy of “Big” data. Work with line managers to “roll out” the people policies put into place by HR and to assist them with all aspects of department staffing, workforce strategy, performance management and dispute resolution 8 Key Legislation Governing HRM Labour Relations Act 66 of 1995 Basic Conditions of Employment Act 75 of 1997 South African Qualifications Authority Act 58 of 1995 Employment Equity Act 55 of 1998 Skills Development Act 97 of 1998 Skills Development Levies Act 9 of 1999 Broad-Based Black Economic Empowerment Act 53 of 2003 9 Let’s Set the Scene for the Key Focus Areas Job Analysis Job description Job specification Duties and responsibilities Qualification, knowledge, skills and abilities 10 KEY FOCUS AREAS CHAPTER 2 – STRATEGISING, STRUCTURING & PLANNING 11  HR Strategy: Attributes A successful HR strategy should be future-orientated and comprehensive, containing the following elements: Recognition that HR costs are an investment, rather than an uncontrollable expense; A proactive approach in developing HR policies and resolving HR problems; A change in emphasis from the completion of personnel transactions to a future-orientated approach, where the HR department controls all aspects of HR; An acknowledgement of the link between HR functions and other organizational functions Recognition of the dynamic and interrelated nature of HRM activities (recruitment, industrial relations etc) A focus on approaches that promote organization and individual goals. 12  Functions of Management Elements of Strategic Management Planning – managerial activities related to preparing for the future. For example, forecasting Organising – includes activities that results in structuring task and authority relationships. Motivating – involves efforts toward shaping desired human responses and behaviors. Staffing – activities centered on personnel or HRM for example, wage and salary administration. Controlling – refers to all those managerial activities directed toward assuring the actual results are aligned with planned results. 13  Organisational Structure Definition How an organization allocates, organizes and supervises the tasks of all those working toward a common goal, so that everyone understands their responsibilities to the group. Different types of organizational structures: Organisation by customer type Organisation by product structure Organisation by geographic location The linking-pin organization The matrix organization Bureaucratic organizational structure 14  Delegation of Authority and Span of Control Delegation of authority: Delegation of authority entails the transfer of authority to a subordinate, and includes the responsibility to perform a necessary task. Span of Control: Refers to the number of workers that one person can manage effectively. 15  Job design The process of designing a job includes a combination of the following four basic considerations: The job must be created to fulfil the organization’s objectives; Industrial engineering considerations. Including ways to make the job technologically efficient; Human engineering concerns, including workers physical and mental capabilities; and Quality of work life changes, which in job design or redesign, is reflected in contemporary programmes. Job enrichment – means any effort that makes work more rewarding or satisfying, by adding more meaningful tasks to an employee’s job. Job enlargement – is sometimes referred to as the horizontal loading of jobs. It consists of increasing the number and variety of tasks that a job includes. 16 KEY FOCUS AREAS CHAPTER 3 - RECRUITMENT 17  Definition of Recruitment Recruitment is the process of attracting, selecting and appointing suitable candidates for jobs (either permanent or temporary) within an organisation. The recruitment process includes analysing the requirements of a job, attracting employees to that job, screening and selecting applicants, hiring, and integrating the new employee into the organisation. 18  Recruitment Conducted in the context of the organisation’s long-term business plans. Job descriptions and job specifications are used in this process. Recruitment is a costly process (includes recruiter’s salary, advertising costs, manager’s salaries and other direct and indirect costs). THEREFORE: A properly planned and executed recruitment policy and procedure is crucial to “get it right”. Recruitment policies and procedures enable managers to avoid discriminatory recruitment practices. The policy must apply to all permanent and temporary or fixed-term contract employees, as well as external job seekers who apply for employment at the company. 19  Recruitment In order for organizations to attract the best candidates/talent in the market to apply to their open vacancy will require them to design and develop an effective job advertisement. This can be achieved by following and applying the AIDA formula in design your job advertisement. Attention Interest Desire Action 20  The Recruitment Policy Important for an organization to ensure that their recruitment and selection policy is effective. Having an effective recruitment and selection policy will contribute toward achievement of important company goals which include: Regulate the way in which recruitment is done, eliminating unfairness, favouritism etc. Ensure company acts and operates within the lawful bounds Provide positive building blocks to implement and employment equity plan. 21  The Recruitment Policy Element 1: The application and authority of the recruitment policy All appointments are made in terms of the policy. This ensures a fair, objective and consistent process. Element 2: Employment equity Equity plans need to be in place and HR must establish which designated groups are targeted for specific positions. Clearly state that preference will be given to affirmative action or designated groups. Element 3: Succession planning The succession plan needs to be transparent. Need to state which types of people will be chosen. Element 4: Classification of positions Classify the type – Replacement positions due to resignation, retirement, dismissal OR new positions due to newly created jobs; temporary or fixed-term. 22  The Recruitment Policy Continued Element 5: Search-for-applicants process Divided into components such as internal or external advertising, or recruitment agencies. Internal advertising Recruiting from inside. Should be first option as it rewards staff for past performance. Should use email, noticeboard, intranet, internal circular or newsletter. External advertising Recruiting from outside. Advertisements provide information about job requirements so people can make informed decisions as to whether they should apply. Employment/recruitment agencies Can be used as the first step in the recruitment process, or parallel to the company’s processes. The agencies are appointed in terms of the company’s procurement, equity and economic empowerment policies. 23  The Recruitment Policy Continued Element 6: Applicant selection Specify the process used to select candidates. Select according to ability, experience, qualifications and potential regardless of race, colour, gender or disability. Try to create a balanced profile of employees through all job categories and levels which reflect the make-up of South African society. Element 7: Selection interview Provide guidelines to determine who will be included on the interview panel. Usually consists of HR, the line manager, a specialist in the relevant field to assess technical skills and knowledge, and the department head. Element 8: Payment of interview costs Provide guidelines on who pays the applicant’s travelling costs. For example, are air tickets refunded, or must applicants take care of their own travelling costs? 24  Recruitment Policy Element 9: The interview Outline the form and direction the interview will take. The structure should include issues such as time allocation, the provision of documentation to each panel member, the format of the questions etc. Element 10: Post-interview procedures Determine and specify if the applicant would need to go through a second interview process, or for psychometric testing or any other tests. Element 11: Offer of employment An offer must contain the following: 1) The package – e.g. company vehicle, car allowance,13th cheque, medical aid or pension fund. 2) The time period in which the applicant can respond to the offer. 3) Negotiation of the package if the applicant does not accept the initial offer. 4) Responsibility for the offer process 5) Compliance with the Basic Conditions of Employment Act 75 of 1997. 25  Recruitment Policy Element 12: Regret of unsuccessful candidates Must contain guidelines on how to inform unsuccessful applicants. Element 13: Temporary and fixed-term contract staff When recruiting contract employees, stipulate terms like time limits for project completion, whether assignments are based on specific outcomes or duration, who will be responsible for signing off time sheets, if contracts may be extended; and who has the authority to extend the contract. Element 14: Appointment of internal applicants State how specific issues will be dealt with. Element 15: Dispute resolution The Labour Relations Act 66 of 1995 introduces dispute resolution mechanisms which provide a legal framework for employers, employees and trade unions to regulate and resolve their own disputes. 26  Recruitment Sources Recruitment sources help to identify where potential applicants are to be found. External sources: Schools Universities Competitors Other organisations Internal sources: Employee records Skills inventories Job posting boards What are the advantages and disadvantages of each? 27  Recruitment Methods Recruitment methods are how potential applicants are encouraged to apply for employment. Methods: Advertising Employment agencies Headhunting Walk Ins Vacation work Professional associations Internet 28  Recruitment Process Determine Obtain Compile Determine Consult Choose Choose need approval JD / JS KPAs policy source method Take Response Screen Provide Proceed to Shortlist Evaluate action time responses feedback selection 29  Recruitment to Avoid Discrimination Recruitment needs to uphold the aims and the objectives of the Employment Equity Act 55 of 1998. The Employment Equity Act requires an employer to: Promote employment equity (erase unfair discrimination of any kind in hiring, promoting, training, pay benefits and retrenchment) Implement affirmative action (a policy aimed at redressing past imbalances as a result of racial discrimination. It is not number crunching. It must include development, retention and the creating a diverse environment) People of colour, women and people with disabilities (the previously disadvantaged groups) need to be prioritized in this process. It makes good business sense to hire people with disabilities for the following reasons: Shows that a company is up to date, socially responsible and globally competitive. Good way to attract and retain customers with disabilities, their families and friends. They are often valuable employees in terms of loyalty and length of service. They often have higher productivity, lower accident rates and lower 30 absenteeism  Retention of Staff Retention will succeed when: The company creates a feeling of safety and security Employees know what their contribution means Staff are recognized and are proud to work for the company The company gives attention to work-life Need to create a good retention culture This involves implementing policies and practices like: Focus on leadership Allow staff to raise issues of concern Get employees to talk about the company’s services or products, become advertisements Communicate strategy and direction Tolerate ideas and honest mistakes Be consistent in applying rules Set clear expectations Hold regular performance reviews and train managers how to manage performance Reward employees Show respect 31 KEY FOCUS AREAS CHAPTER 4 - SELECTION 32  Definition of Selection It is a process which identifies individuals (out of the pool of job applicants) to hire those with a greater likelihood of success in a specific job. It looks at the qualifications and competence to fill a job and then involves interviewing and evaluating candidates for that job. It ends in an offer of employment 33  Internal and External Factors that influence the selection decision Internal environmental factors: Size Nature Trade union membership Specialized skills External environment factors: Labour market conditions Trade unions – members can make demands regarding employment etc Government regulations 34 Selection Process (Source: EDGE Learning Media (Pty) Ltd, 2018) 35  Selection Interview Structured interviews Uses careful, systematic planning of questions to be asked Uses technically skilled interviewers Unstructured interviews The applicant plays a larger role in determining the course the discussion will take The interviewer asks broad general questions Mostly used when interviewing candidates for high-level positions. Disadvantage is that HR may not gather sufficient crucial information Semi-structured interviews Most important questions are compiled in advance. There is flexibility in the type of questions asked Interviewer can ask questions about aspects that require deeper investigation 36  Questions to Avoid in a Selection Interview An interviewer may not discriminate against an applicant for employment, unless it is justified in terms of the job requirements. Avoid any questions that can be perceived as discriminatory. Do NOT ask about: Disabilities You may ask: ‘Can you meet the attendance requirements of the job?’ You may not ask: ‘Are you disabled?’ The company should provide people with disabilities with reasonable accommodation. For example: Wheelchair users: Ensure the company uses a wheelchair-friendly interview and testing space. Intellectually disabled people: Do not overwhelm these candidates with rapid questions or stressful panel interviews. Be patient and phrase questions simply and clearly Hearing impaired people: Hire a sign language interpreter for the interview, if necessary. Speak directly to the applicant, and not the interpreter. Visually impaired people: Speak clearly and avoid non-verbal communication and whispering to co- interviewees. HIV/AIDS Do NOT ask if an applicant has HIV/ Aids 37  Questions to Avoid in a Selection Interview Continued Sex and family matters Do not ask questions about sex, family status or pregnancy. You may ask: ‘Are you willing to travel for work?’ - but you cannot only ask female applicants that question. You may not ask: ‘Are you married?’, ‘How many children do you have?’, ’What is your childcare arrangement’ etc. Age You may ask: ‘How long do you intend to stay in the position you are seeking?’ You may not ask: “Are you close to retirement?’. Race You may ask: ‘Do you speak languages other than English that might be helpful in performing the job?’. You may not ask: ‘What is the origin of your last name?’ Also avoid questions on: Height, weight, origin or religion 38  Reference Checks Reference checks are used to verify an applicant’s information on history, education and social behaviour patterns from people who know the candidate. Past employer phone calls are still vital for safe hiring, because: 1. It eliminates unexplained employment gaps 2. Hiring is done on facts, not instincts 3. Demonstrates due diligence 4. Valuable information is received 39  Employment Contracts It is a written legal document that outlines the terms and conditions of the relationship between the employee and employer The terms and conditions in a contract are binding. Based on conditions outlined in the Basic Condition of Employment Act 75 of 1997 Different types of employment contracts: Full-time contracts (most common type and is offered to permanent employees). Part-time contracts (work less hours than full-time, permanent employees. Contracts are more flexible). Fixed-term contracts (Contracts for employees who work for a specific amount of time). Temporary contracts (Similar to fixed-term contracts. End dates may change, depending on business demands) Agency contracts (contracts that are managed by a recruitment or employment agency). Freelancers and contractors ( Self-employed people who fulfill projects). Zero-hour contracts (Also referred to as ‘casual workers’ or ‘free agents’. They can seek other work and the employer is not obliged to guarantee a set amount of work hours). 40 KEY FOCUS AREAS CHAPTER 11 – EMPLOYMENT RELATIONS 41  Definition of Employment Relations Employment relations is the paid employment or pay-work bargain that occurs between an employee and their employer (Farnham, 2000: 3). This employment relationship is usually formalised with an employment contract Many think that Industrial relations (or labour relations) and employment relations are the same thing, BUT there is a differences: Industrial Employment Relations Relations Focus on the Focus on employee - analysing and employer managing work relationship specific to an employee 42 Advantage of good of Employment Relations Low staff turnover Better employee performance An increase in employee productivity Increased innovation Fewer instances of absenteeism Fewer dismissals 43 Parties in the Employment Relationship 44  Role of the Parties in the Employment Relationship Role of the state Government plays the role of both ‘master and servant’ to the two primary participants, namely management and employees. Master, because it creates policies and legislation that govern employee relations. Servant, because it helps both primary parties to conduct their relationship in an orderly fashion. Role of the employer To reach the business goals, management must ensure that the right things are done in the right way. The organisation is a legal entity, an employing organisation. Management is responsible for representing the interests of the organisation Management is responsible for safeguarding and improving the profitability of the organisation (investors get return on their investment - ROI). ROI is achieved by making decisions on the best utilisation of scarce resources, which include human resources – better known as labour. Management must combine, utilise and transform all resources to deliver products and/or services. They protect the the owners’ interests if the above if managed effectively and efficiently. Management is also represented by employer organisations. 45  Role of the Parties in the Employment Relationship Continued Role of the employees A worker ‘sells’ their labour potential (which includes brain power, energy and physical abilities) to the employer to do a job. In return, the employee expects the work environment to be conducive – i.e. a workplace they can apply the necessary skills, abilities and attitude needed to contribute to the success of the organisation, by means of hard work, self-development and management support. The role of the customers The way a customer is treated affects their perceptions. Customer behaviour is influenced by these perceptions. Consider the effects that a strike or poor service delivery will have on customer attitude and loyalty. Role of competition Need to pay attention to other organisations in the same industry. Extending business activities may result in an increase in demand, increase in growth opportunities, job creation and job opportunities. 46 Key Legislation Governing Employment Relations Labour Relations Act 66 of 1995: A collective employment law. Basic Conditions of Employment Act 75 of 1997: An employment standards law. Employment Equity Act 55 of 1998: An employment equity law to prohibit discrimination, and to promote affirmative action. Skills Development Act 97 of 1998 and Skills Development Levies Act 9 of 1999: A skills development law and financing mechanisms law, to incentivise the growth of skills among workers. Unemployment Insurance Act 63 of 2001: A revised social security law, to assist employees who become unemployed. 47  BASIC CONDITIONS OF EMPLOYMENT ACT Purpose of the act is to: Protects all employees - establishes a threshold of basic conditions of employment Offers basic protection to employees who have no bargaining power Balances the superior economic power of employers Gives protection to vulnerable employees, such as pregnant women, children, domestic workers, farm workers, security workers, part-time employees and unorganised employees Does not entirely apply to the following: Independent contractors Self-employed people Members of the National Defence Force Members of the National Intelligence Agency Members of the South African Secret Service Unpaid volunteers working for charities 48  BASIC CONDITIONS OF EMPLOYMENT ACT CONTINUED An employee may not work normal times more than: 45 hours in a week 9 hours a day (if the employee works for five days or less in a week) Ordinary 8 hours a day (If the employee works for more than five days a week) Working Time Note: If an employee serves the public and they cannot complete some duties while they are open, hours of work may be extended (by agreement) by up to 15 minutes in a day, but not by more than 60 minutes in a week Procedures are in place for the progressive reduction of the maximum ordinary hours of work to a maximum of 40 ordinary hours of work per week and eight ordinary hours of work per day. 49 BASIC CONDITIONS OF EMPLOYMENT ACT CONTINUED Regulation of working time does not apply to: Senior managerial employees Employees engaged as sales staff, who travel to the premises of customers and who regulate their own hours of work Employees who work less than 24 hours a month for an employer Emergency work Employees earning more than the statutory minimum. 50  BASIC CONDITIONS OF EMPLOYMENT ACT CONTINUED An employee may not work overtime for more than: 3 hours per day 10 hours per week Note: Overtime Cannot allow an employee to work more than 12 hours on any day. Overtime needs to be agreed upon – but, the performance of emergency work is an exception. It does not require the consent of the employee. Overtime is paid at time and a half; and must be paid within one month of the overtime being worked. The period may be increased to 12 months by a written agreement. 51  BASIC CONDITIONS OF EMPLOYMENT ACT CONTINUED An employee needs to be given a meal interval for: 1 hour (after 5 hours of work) 10 hours per week Meal Intervals Note: The meal interval needs to be 1 continuous hour. Can reduce the meal interval to not less than 30 minutes (by written agreement) If an employee works less than 6 hours a day, the interval can de dispensed with (by written agreement) 52  BASIC CONDITIONS OF EMPLOYMENT ACT CONTINUED An employee is entitled to: A daily rest period of at least 12 consecutive hours A weekly rest period of at least 36 consecutive hours Rest Periods Note: The weekly rest period must include a Sunday. A daily rest period can be reduced to 10 hours for an employee who lives on the work premises and whose meal interval lasts for at least three hours. 53  BASIC CONDITIONS OF EMPLOYMENT ACT CONTINUED Note: It is not compulsory to work on a public holiday. If the holiday falls on a day the employee would ordinarily have worked and Public the employee does not work on that day, the employee must be paid at the normal Holidays rate of pay If the employee works on the day, then the employee is entitled to double time. 54  BASIC CONDITIONS OF EMPLOYMENT ACT CONTINUED An employee needs to be given: 21 consecutive days of annual leave on full pay As an alternative, by agreement: Annual Leave 1 day of annual leave on full pay for every 17 days worked Note: Leave must be taken no later than six months after the end of the leave cycle. An employer may not pay an employee in lieu of granting leave, except on termination of employment. 55  BASIC CONDITIONS OF EMPLOYMENT ACT CONTINUED An employee is entitled to: An amount of paid sick leave in a sick leave cycle, equal to the number of days the employee would normally work during a period of six weeks. However, during the first 6 months of employment, the employee is entitled to one Sick Leave day of paid sick leave for every 26 days worked. Note: An employee is not entitled to be paid if they have been absent from work for more than two consecutive days, or on more than two occasions during an eight-week period and, on request, does not provide a medical certificate to prove that they were incapacitated. 56  BASIC CONDITIONS OF EMPLOYMENT ACT CONTINUED An employee is entitled to: 4 four consecutive months maternity leave Note: Maternity An employee may not work for six weeks after the birth of the child, unless a doctor Leave or midwife certifies that she is fit to do so. Maternity leave may be unpaid. The woman is entitled to claim a maternity benefit in terms of the Unemployment Insurance Act if she is given unpaid maternity leave. 57  BASIC CONDITIONS OF EMPLOYMENT ACT CONTINUED An employee is entitled to: 3 days paid family responsibility leave, during each annual leave cycle Note: Only applicable to full-time employees who have been in the business for longer than Family four months, and who work for more than 4 days per week. Responsibility Leave Given in the event of: Paternity leave (employee’s child is born) Employees child is sick Death of a spouse, life partner, parent, adoptive parent, grandparent, child, adopted child, grandchild or sibling. Reasonable proof of the event to be provided. Does not apply to: Employees who have worked for an employer for less than four months Employees who work for less than four days a week for an employer 58  BASIC CONDITIONS OF EMPLOYMENT ACT CONTINUED Regardless of leave type, the normal rules governing the leave do not apply to: Employees who work less than 24 hours per month Employees who are entitled to leave, in excess of that provided for in the Act. Note About Leave 59  BASIC CONDITIONS OF EMPLOYMENT ACT CONTINUED Payslips: An employee must be given a payslip each time the employee is paid. Information on it must include employer details, employee’s name and occupation, period for which payment is made. employee’s remuneration, deductions and actual amount paid to the employee. Other Considerations Notice of termination of employment by employees: The following notice periods may terminate a contract of employment: 1 week during the first 6 months of employment 2 weeks during the remainder of the first year (farm and domestic workers get 4 weeks) 4 weeks, after 1 year of employment. Age of workers/children: An employer may not employ children under the age of 16. 15 years olds may be permitted by special arrangement. 60  LABOUR RELATIONS ACT The Labour Relations Act (LRA) 66 of 1995 is a product of the tripartite agreement between organised labour (employees), organised business (employers) and the state. It is not simply written by government. From a collective labour law perspective, the most important piece of legislation is the LRA. 61  LABOUR RELATIONS ACT Aims of the act (Textbook page 376 -377): Dispute resolution Collective bargaining Freedom of association and organisational rights of trade unions Operational requirement disputes Individual employment law The LRA does not apply to: The National Defence Force The National Intelligence Agency The South African Secret Service 62 THANK YOU 63