Chapter 12 - Human Resource Management and SA Labour Legislation - PDF

Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed. Cape Town: Oxford. CHAPTER 12 HUMAN RESOURCE MANAGEMENT AND THE SA LABOUR LEGISLATION FRAMEWORK  Erasmus, B., Rudansky Kloppers, S. & Str...

Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed. Cape Town: Oxford. CHAPTER 12 HUMAN RESOURCE MANAGEMENT AND THE SA LABOUR LEGISLATION FRAMEWORK  Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed. Cape Town: Oxford. CHAPTER OUTLINE Introduction The relationship between line management and the human resource (HR) department Human resource planning Finding qualified talent Developing talent Retaining talent Motivating employees Labour legislation that impacts the workplace Summary  The HR function HR functions as a strategic partner THE Improve skills base of employees and RELATIONSHIP contribute to the profitability of the BETWEEN organisation LINE Every manager in the organisation should MANAGEMENT realise the importance of recruiting, AND THE HR selecting, training, developing, rewarding, DEPARTMENT assisting and motivating employees Integration and teamwork are essential for organisational success. Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed. C Town: Oxford.  HR management and organisational effectiveness Effective organisations must have a vision, a THE mission strategy, organisational structure and RELATIONSHIP human resources BETWEEN Successful companies have the following HR LINE management attributes: Primary benefits (monetary benefits) MANAGEMENT Secondary benefits and working conditions AND THE HR (non-monetary benefits) DEPARTMENT Training and development Career development Company culture and diversity Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed. Cape Town: Oxford.  HR management and organisational effectiveness (continued) Contribution of HR to organisational effectiveness should include: Assisting everybody to reach goals THE Efficient use of skills and abilities. RELATIONSHIP Training and motivating employees BETWEEN Job satisfaction and self-actualisation LINE Desirable quality of working life MANAGEMENT Maintaining ethical policies and socially responsible behaviour AND THE HR Managing change to the mutual advantage of DEPARTMENT individuals and public Involvement in strategic decision making and strategy formulation. Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed. Cape Town: Oxford.  Can be divided into three phases: Phase 1: identify the work being done in the HR PLANNING organisation. Phase 2: human resource forecasting Phase 3: the human resource plan Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed Town: Oxford. HR PLANNING Phase 1: Identify the work being done in the organisation. Job analysis Job description Job specification Process used to Written format Details investigate the listing contents knowledge, tasks, duties of the job skills and and abilities relevant responsibilities to the job of a job in an organisation Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed. Cape Town: Oxford. Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed. Cape Town: Oxford.  Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed Town: Oxford. HR PLANNING (CONTINUED) Phase 2: Factors to Human consider resource during forecasting forecasting: New Economic developmen The labour growth ts in the market. business  Phase 3: The human resource plan Purpose of this plan is to provide concrete guidelines and steps that indicate how the business’s short-, medium- and long-term HR PLANNING human resource requirements can be provided for. (CONTINUED) It answers the question “What must we do today to be prepared for tomorrow?” Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed. Cape Town: Oxford.  Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed. Cape Town: Oxford. FINDING QUALIFIED TALENT Recruiting from inside Recruiting from outside Recruiting methods: Recruitment through advertisements Recruitment through private employment/recruitment agencies Recruitment through existing employees Recruitment though personal approach (headhunting) Recruitment through radio, TV and the internet FINDING QUALIFIED TALENT (CONTINUED) Talent selection Selection is the process of determining which individuals are best suited to fill positions in the organisation. Selection process Application and short listing (Preliminary screening). Intensive assessment Psychological testing Diagnostic interview Final selection Onboarding. Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed. Cape Town: Oxford. DEVELOPING TALENT Human resources development (HRD) Development methods: On-the-job training and development Away-from-the-job training and development The danger of the ‘shotgun’ approach to development Performance appraisal Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed. Cape Town: Oxford. DEVELOPMENT METHODS Job Rotation: Staff member moved to a new job to enrich and stretch the staff member Job Shadowing: Following and observing a trained, knowledgable and experienced employee. - Learn more about different jobs. - Test employee interest and capabilities. - Seeing rather than telling. Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed. Cape Town: Oxford. DEVELOPMENT METHODS Enlarged and enriched job responsibility: Increasing an employee's responsibility and autonomy. Job instruction training: a series/steps that supervisors follow when training employees. Coaching: Supervisors may coach their staff to perform different tasks. Mentoring: When one person shares knowledge, skills and information to foster the other persons growth. Apprenticeships and internships: Providing a realistic overview of the job and organisational conditions. Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed. Cape Town: Oxford.  Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed. Town: Oxford. Lectures. Conferences and discussions. AWAY FROM JOB TRAINING Seminars. AND Simulations. DEVELOPMEN E-learning T Case studies Role playing  Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed Town: Oxford. PERFORMANCE APPRAISAL To determine Employee has Compiled with Not compiled where: done the with exceptionally requirements. requirement. well. PERFORMANCE APPRAISAL 360 PERFORMANCE APPRAISAL. 3 BASIC PURPOSES: Provide basis for financial rewards Determine if employee should be promoted etc. Provide the employee with feedback. Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed. Cape Town: Oxford. RETAINING TALENT Compensation of employees (Intrinsic and extrinsic) Types of compensation Direct compensation Indirect compensation Reward The amount of compensation External comparison (salary survey) Internal comparison (job evaluation) Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed. Cape Town: Oxford.  Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed Town: Oxford. Someone who receives a monthly pay cheque earns a salary DIRECT Someone who receives a COMPENSATIO weekly pay cheque earns N a wage. Piece wage: Pay according to productiveness, regardless of time INDIRECT COMPENSATION The benefits employees receive from the organisation are called “fringe benefits”. They include: Leave benefits Insurance benefits Housing benefits Car benefits Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed. Cape Town: Oxford. REWARDS Most common form of reward is a salary increase (take into account cost of living and inflation vs Merit). Financial bonuses (e,g 13th cheque). Paid holidays / trips. Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed. Cape Town: Oxford. AMOUNT OF COMPENSATION Step 1: external comparison. Looking at what others in similar positions outside of your organisation earn. Salary surveys Step 2: Internal comparison Determining the value of different jobs to the organisation. Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed. Cape Town: Oxford. MOTIVATING EMPLOYEES Employee motivation Motivation in the workplace Four content approaches to motivation: Maslow’s hierarchy of needs Alderfer’s ERG theory Herzberg two-factor theory McClelland’s theory of needs. Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed. Cape Town: Oxford.  Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed Town: Oxford. Content approaches: Those things that actually motivate people to do their jobs. These theories focus on what factors within a person that direct, MOTIVATION IN energise and maintain THE behaviour. WORKPLACE Process Theories: Concerned with trying to establish how employee behaviour is energised, directed and maintained.  MASLOWS HIERARCHY OF NEEDS Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed. Cape Town: Oxford.  ALDERFER’ S ERG THEORY Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed. Cape Town: Oxford.  HERTZBERG TWO FACTOR THEORY Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed. Cape Town: Oxford. Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed. Cape Town: Oxford. MOTIVATING EMPLOYEES (CONTINUED )  Process approaches to motivation MOTIVATING Expectancy theory EMPLOYEES Equity theory and organisational justice Goal-setting theory and feedback (CONTINUED) Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed. Cape Town: Oxford.  Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed. Cape Town: Oxford. EXPECTANCY THEORY Motivation depends on 2 aspects: How much we want something and How likely we are to get it. 3 concepts in expectancy theory: Expectancy: The belief the person has that a level of effort will result in a particular level of performance. Instrumentality: refers to the belief that a certain performance leads to specific outcome. Valence: The attractiveness / distractedness' the person perceives of a outcome.  Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed. Cape Town: Oxford. EQUITY THEORY AND ORGANISATIONAL JUSTICE Employees compare their efforts and rewards to other employees in similar situations. Based on the assumption that people are motivated by the desire to be treated equitably. Organisational justice reflects the extent to which employees perceive they are treated fairly at work. Distributive justice: Perceived fairness of how resources and rewards are distributed. Procedural justice: Perceived fairness of processes and procedures Interactional justice: The quality of interpersonal treatment. GOAL SETTING THEORY AND FEEDBACK Employee performance will improve if they strive towards a definite goal. The more difficult the goal, the higher level of performance is (granted there is commitment). People must be capable of achieving the goals. Feedback is extremely important. - Evaluations - Feedback must be specific and not general. - Development activities must be agreed upon. Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed. Cape Town: Oxford. MOTIVATING EMPLOYEES (CONTINUED) Employee motivational strategies Job design Employee involvement programmes Management-by-objectives (MBO) strategies (goal setting) Intrapreneurial incentives Training and education Employee-recognition programmes Empowerment programmes Reward systems Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Career management. Management. 11th ed. Cape Town: Oxford. Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Manage ment. 11th ed. Cape Town: Oxford. Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Manage ment. 11th ed. Cape Town: Oxford. Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Manage ment. 11th ed. Cape Town: Oxford. LABOUR LEGISLATION THAT HAS AN IMPACT ON THE WORKPLACE The Constitution of the Republic of South Africa Act (No. 108 of 1996) Most important piece of legislation in South Africa Sets out structure of state Bill of Rights (Chapter II) Section 23 relates specifically to labour rights Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Manage ment. 11th ed. Cape Town: Oxford. LABOUR LEGISLATION THAT HAS AN IMPACT ON THE WORKPLACE (CONTINUED) Laws affecting business activities Laws to regulate the form and functioning of businesses Companies Act (No. 71 of 2008) Labour Relations Act (No. 66 of 1995) (LRA) Basic Conditions of Employment Act (No. 75 of 1997) (BCEA) Employment Equity Act (No. 55 of 1998) Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Manage ment. 11th ed. Cape Town: Oxford. LABOUR LEGISLATION THAT HAS AN IMPACT ON THE WORKPLACE (CONTINUED) The Labour Relations Act (No. 66 of 1995) The purpose of this Act is to give effect to and regulate the fundamental rights contained in the Bill of Rights, and provide the framework in which employees, their trade unions, employers and employer’s organisations can engage in collective bargaining and formulate industrial policy. Labour relations = formal and informal relationships between state, employers, employees and related institutions. Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Manage ment. 11th ed. Cape Town: Oxford. CONTENTS OF LRA FREEDOM OF ASSOCIATION: Employees have the right to form a trade union or to join a trade union of their choice Organisational rights: Trade unions may apply for and exercise certain organisational rights in respect of the employers' premises / operations. Bargaining and Statutory Councils: These are councils with dispute- resolution structures. Consists of one or more registered trade union and one or more employers organisation. Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Manage ment. 11th ed. Cape Town: Oxford. CONTENTS OF LRA CCMA: The best known and most important institution for the resolution of labour disputes. Deals with unfair dismissals, unfair labour practice and discrimination disputes. Strikes and Lockouts: the partial or complete refusal to work or the obstruction of work by employees of the same or different employers in Agency the efforts of remedying agreements and grievances closed shoporagreements: resolving disputes. an agreement between employer and a trade union (whos in a majority) on a agency shop fee. Workplace forum: Designed to shift relationships between trade union and employers from adversarial to join-problem solving. Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Management. 11th ed. Cape Town: Oxford. Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Manage ment. 11th ed. Cape Town: Oxford. LABOUR LEGISLATION THAT HAS AN IMPACT ON THE WORKPLACE (CONTINUED) Participants in labour relations Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Manage ment. 11th ed. Cape Town: Oxford. LABOUR LEGISLATION THAT HAS AN IMPACT ON THE WORKPLACE (CONTINUED) Communication: Grievances and disciplinary aspects The grievance procedure An employee’s response to the real, perceived or alleged breach of the terms of the employment contract There are many advantages to effective grievance handling procedures: Safety valve that releases tension. Allows raising and settlement of grievance by a worker without fear of victimization. Allows managers to eliminate legitimate causes of dissatisfaction or conflict. Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Manage ment. 11th ed. Cape Town: Oxford. LABOUR LEGISLATION THAT HAS AN IMPACT ON THE WORKPLACE (CONTINUED) The Basic Conditions of Employment Act (No. 75 of 1997) The overall purpose of this Act is to advance economic development and social justice in South Africa. It also gives effect to and regulates the right to fair labour practices conferred by section 23 of the Constitution of 1996. Furthermore, it establishes and enforces the basic conditions of employment and regulates the variation of basic conditions of employment. Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Manage ment. 11th ed. Cape Town: Oxford. CONTENTS OF BCEA Working time Leave Remuneration, deductions and notice of termination Administrative obligations Prohibition of employment of children and forced labour Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Manage ment. 11th ed. Cape Town: Oxford. LABOUR LEGISLATION THAT HAS AN IMPACT ON THE WORKPLACE (CONTINUED) The Employment Equity Act (No. 55 of 1998) The main aim of this Act is to do away with all forms of discrimination in employment in South Africa by promoting equity and non- discrimination in the employment sector. The overall purpose is to achieve equity in the workplace. - Prohibition and elimination of unfair discrimination - Affirmative Action. Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Manage ment. 11th ed. Cape Town: Oxford. LABOUR LEGISLATION THAT HAS AN IMPACT ON THE WORKPLACE (CONTINUED) The Skills Development Act (No. 97 of 1998) The aim of this Act is to develop the skills of South African human resource planning, and to increase the levels of investment in education and training in the labour market. Use workplace as an active learning environment. To encourage workers to participate in learning and other training programmes. Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Manage ment. 11th ed. Cape Town: Oxford. SKILLS DEVELOPMENT INSTITUTIONS - SETAs *To develop sector-skills plan *To promote learning programmes by identifying workplaces for practical work experience. *Establishing learning programmes, allocating grants and monitoring education and training in the sector -Learnerships and apprentiships Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Manage ment. 11th ed. Cape Town: Oxford. LABOUR LEGISLATION THAT HAS AN IMPACT ON THE WORKPLACE (CONTINUED) Skills Development Levies Act (No. 9 of 1999) The purpose of this Act is to provide for the imposition of a skills development levy. 1% of an employee's total remuneration must be paid. SARS is the receiver of the funds. Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Manage ment. 11th ed. Cape Town: Oxford. LABOUR LEGISLATION THAT HAS AN IMPACT ON THE WORKPLACE (CONTINUED) The Occupational Health and Safety Act (No. 85 of 1993) The main purpose of this Act is to protect employees by ensuring a healthy and safe work environment. Duties of employers include To take any measures necessary in the interest of health and safety. Ensure work is done under supervision of a trained person Duties of employees include Reporting any unsafe or unhealthy situation. To take reasonable care for their own health and safety. Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Manage ment. 11th ed. Cape Town: Oxford. LABOUR LEGISLATION THAT HAS AN IMPACT ON THE WORKPLACE (CONTINUED) The Compensation for Occupational Injuries and Diseases Act (No. 130 of 1993) The aim of this Act is based on the principle that compensation will be paid to an employee if an injury has been caused by an accident arising out of and in the course of the employee’s employment. Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Manage ment. 11th ed. Cape Town: Oxford. LABOUR LEGISLATION THAT HAS AN IMPACT ON THE WORKPLACE (CONTINUED) The Unemployment Insurance Act (No. 63 of 2001) The Act provides for the payment of benefits for a limited period to people who are ready and willing to work but are unable to get work for whatever reason. Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Manage ment. 11th ed. Cape Town: Oxford. LABOUR LEGISLATION THAT HAS AN IMPACT ON THE WORKPLACE (CONTINUED) The Employment Services Act (No. 4 of 2014) The Act aims to repeal all employment services’ provisions contained in the Skills Development Act (No 97 of 1998) and to provide for a range of measures to promote employment and also regulate the employment of foreigners. Provide schemes to assist employees in distressed companies to retain employment. Promote employment of young work seekers. Facilitate the employment of foreign nationals Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Manage ment. 11th ed. Cape Town: Oxford. LABOUR LEGISLATION THAT HAS AN IMPACT ON THE WORKPLACE (CONTINUED) The Protection of Personal Information Act (No. 4 of 2013) (POPI) The main purpose of the Act is to give effect to the constitutional right to privacy by safeguarding personal information when processed by responsible party and subject to justifiable limitations. Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Manage ment. 11th ed. Cape Town: Oxford. SUMMARY Activities associated with the HR function of the organisation Recruitment and selection of talent, HR planning and job analysis Importance of motivation and ways to motivate Legal environment that influences HR managers and organisation Overview of labour laws that managers and HR practitioners need to implement. Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Manage ment. 11th ed. Cape Town: Oxford. SCENARIO You are the owner of a chain of retail grocery stores in Johannesburg. You have employed managers in each to completely run the operations of the store. Recently, you find that the staff in one of your stores are just not working hard enough. You approach a cashier at one of the stores, and she says that the reason for this is because the store manager (Cindy) is continuously treating the staff terribly. She forces them to work 12-hour days with only a 30-minute lunch break, she is paying them below minimum wage. She also said that last week one of the blockman in the butchery, George, cut his hand and had to pay for all the medical bills out of his own pocket. Erasmus, B., Rudansky Kloppers, S. & Strydom, J., 2019. Introduction to Business Manage ment. 11th ed. Cape Town: Oxford. QUESTIONS Explain the implications that labour legislation has on business, and why it is so essential a business is following this legislation. What labour legislation according to the South African constitution is Cindy (the manager) breaching in terms of her staff? What are possible interventions the staff could take in order to solve the issues they have?