Human Resource Management Chapter 1 PDF

Human Resource Management Chapter 1 Introduction o Increased competition in a service and knowledge-based economy o Compels organisations to develop a unique competitive advantage o That resides in its intellectual capital Intellectual capital o The ability of employees to apply and...

Human Resource Management Chapter 1 Introduction o Increased competition in a service and knowledge-based economy o Compels organisations to develop a unique competitive advantage o That resides in its intellectual capital Intellectual capital o The ability of employees to apply and transform their knowledge and understanding into something of value to their jobs and the organization. This creates wealth for the organisation that is not explained by the book value of its physical assets. The Service Profit Chain An organisation o Can be described as an arrangement of people in a systematic structure of jobs and authority, guided by processes, systems, policies, and procedures to accomplish some specific purpose over time The organisation as an open system Success criteria for organisations o Efficiency o Effectiveness o Adaptability o Congruence or fit o Responsibility or sustainability Stakeholders o Groups and individuals who can either have some effect on the organisation, or may be affected in some way by the organisation’s activities. o Both internal to the organization and external parties who have expectations of how the organisation should operate Organisational sustainability o Organisational sustainability addresses the interplay between the economic, environmental, and social impacts of business activity and can be defined as the pursuit of long-term success, while having a positive impact on the society and the environment in which the organization lives and works, in order to meet the needs of current and future generations The role of people in organisations o “GE’s all about finding and building great people…..I’m over the top on lots of issues, but none comes as close to the passion I have for making people GE’s core competency.” - Jake Welch Elements of intellectual capital o Human capital o an individual-level construct consisting of employee o Capability  o Satisfaction o Sustainability o Relational capital o the capabilities that arise in an organisation through the network of relationships between o Employees o Customers o and the Community o Structural capital o formal organisational arrangements that an organisation adopts to facilitate human and relational capital, and includes o the culture that is created, o organisation processes and information systems o the management of intellectual property (including patents or trademarks) Managing people effectively o The component tasked with the management of people is the HRM function. HRM o HRM Activities: o Establishing roles of employees o Linking with aims and objectives of the organisation o Achieved through efforts of people – leadership & motivation. o Driven (vehicle) of systems & practices o A definition: o “the productive use of people in achieving the organisation’s strategic objectives and the satisfaction of individual employee needs” (Stone, 2008:4) o Psychological contract: o Inclusiveness – a concern for individual development. o Time frame – is the arrangement open-ended or not. o Formalised – whether it is written or not. o Stability – Whether it is dynamic and subject to change. o Tangible – whether a third party would observe the conditions under which it operates. Human Resources… o Are an organisation’s greatest assets o All other resources get connected through men o To make them deliver they need to be – o Properly selected o Properly trained o Properly motivated Definitions of HRM o Byers & Rue: “HRM is the function facilitating the most effective use of people to achieve both organisational and individual goals” o Michael Jucious: “HRM is that field of management which deals with planning, organising & controlling the functions of procuring, developing, maintaining and utilising a labour force such that organisational & individual goals are fulfilled” HRM is o Process of acquiring, training, appraising and compensating employees such that they are motivated to achieve both the organisational and individual goals Human Resource Management (HRM) o HRM is the system of o philosophies, o policies, o programmes, o practices, o and decisions o that affect the  o attitudes, o behaviour, o and performance o of the people of an organisation so that people are o satisfied, o perform, o and contribute to the organisation, achieving its strategic objectives. External environmental factors Political Economic Social Technical Ecological Legal Outputs Inputs Individual-level The HRM Performance Organisation strategy Organisation System Staffing Performance Commitment Creativity Management structural Satisfaction arrangement Group-level s HRM Strategy Systems and & Planning Synergy processes Co-operation Organisation Learning & Good relations culture & Development Organisation-level climate Managers Monitoring & Staff retention Employees Control Low absenteeism Information Cost effectiveness Finance Legal compliance Other Sustainability resources Individual & Compensation & Collective Rewards Labour Relations The HRM department in a large organisation The new business role of human resources management o To create sustained competitive advantage and thereby add measurable value to the organisation by delivering bottom-line business results and adding value for customers, shareholders and employees. The HR architecture as a strategic asset o Consists of o the HR function, o the HR system o and the employee behaviours The multiple roles of the HR function SM2O Strategic Strategic Partner Managing Long-term Diagnose organisation processes focus and align HR and business Admin Expert Change Agent Reengineer organization Manage change and ensure processes to build capacity for change to efficient infrastructure create a renewed organisation Employee Champion Manage employees as valuable Operation Managing assets and provide resources day-to-day people to increase employee focus commitment and capability Management and its role o Any business manager needs to be able to design, establish, and maintain the HRM function as well as to understand people, operate from a HRM philosophy, and be able to work with and through them either as individuals or as groups on a daily basis, to achieve the goals of the business organisation. o Through adopting the right human resource philosophy in managing the business, the manager can ensure better performance and higher organisational productivity and profits. o A human resource philosophy sees people as important and indispensable rather than as a dispensable factor, or the production equivalent of machinery. The journey in responsible corporate citizenship o Stage 1: Elementary o A lack of awareness and indifference to the issues of sustainability. o Stage 2: Engaged o A growing realisation of the company’s role in society and an acknowledgement that mere compliance is not enough. o Stage 3: Innovative o Begin to truly grasp a multiple stakeholder viewpoint, adopt numerous initiatives, and begin to monitor activities, but still grapple with the “business case” for corporate citizenship and sustainability. o Stage 4: Integrated. o Integration of the economic, social and environmental dimensions of strategic decision making, activity and reporting. o Stage 5: Transforming  o Under the guidance of visionary leaders, new market opportunities are developed from combining the company’s responsible citizenship agenda with its business agenda Approaches to sustainable HRM o “Capability Reproduction” o Focused on sustainable competitive advantage and the internal impacts of HRM policies o “Promoting Social and Environmental Health” o Focused on the broader social and environmental outcomes of HRM practice, and how these are positively related to economic outcomes o “Connections” o A broader perspective of the organization looking at the interrelationships between a range of management and leadership practices, rather than narrowly looking at the HR activities in isolation. A constructive management philosophy of the human resource o People constitute social capital rather than variable costs. o People are capable of growth o People are capable of productive work o Manage with the goal of balancing the needs of people and the organisation. o People who participate in defining problems and their solutions will become committed to the new results o Open two-way communication builds trust and commitment o Power equalisation is a key factor in encouraging openness and collaboration among stakeholders. o Employees will be motivated, and the organisation more effective, if they work towards organisational goals that they accept as legitimate. UNIT 5 - Compensating public sector employees, Incentives and managing employee relations Compensating and caring for public sector employees o Compensation is always central to any employment relationship and revolves around the exchange transactions between employees and the institution that employs them. o Erasmus et. al. (2005:149) define compensation as the financial and non-financial extrinsic rewards provided by an employer for the time, skills, and efforts made available by the employee in fulfilling job requirements aimed at achieving institutional objectives; Types and structure of rewards o Intrinsic rewards include things such as: personal achievement, professional growth, sense of pleasure and accomplishment, More responsible, Opportunities for personal growth, More interesting work, Autonomy o Extrinsic rewards motivation is based on tangible rewards, is external to the individual and is typically offered by a supervisor or manager. o Financial or nonfinancial Financial Nonfinancial Performance Membership Status rewards Social rewards Commission Basic salary Location of the office Compliments Performance bonus Retirement benefits Office furnishing Dinner invitations Share options Car allowance Assigned parking Social gatherings Medical aid Own secretary Subsidised canteen Compensation objectives, o these are the guidelines that determine the nature of the reward system and also serve as standards against which the effectiveness of the system is evaluated. o Attracting the right quality of candidates o Retaining suitable employees o Maintaining equity among employees o Rewarding good performance o Maintaining cost effectiveness o Complying with legal requirements Influences on compensation policy o External factors o Government legislation including the Constitution of the Republic Of South Africa, 1996, The Labour Relation Act 66 Of 1995, The Basic Conditions Of Employment Act 75 Of 1997 & The Employment Equity Act Of 1998 o Economy : Broad economic conditions such as inflation, general economic situation; comparable sectors in the country; o Labour market which is influenced by supply and demand of labor; geographical and other variations/diversity; levels of productivity; ability of employers to pay; obligation of the government towards citizens; eg The notion of ‘a living wage’ o Trade unions o Internal factors o Ability to pay: ability to pay has a great impact on its general level of compensation. Its level of productivity is profitability in size and its competitors are all determinants of its ability to generate revenues for paying its human resources. o Employee needs: employees differ in terms of what they prefer to receive as compensation o Job requirements: requirements in terms of average skill level of employees may impact on the pay level o Strategy, culture and values: Institutional values such as decision style, openness regarding communication and social responsibility may have a bearing on compensation policies Objectives - employer o Attracting and retaining requisite skills, expertise; o Rewarding good performance and achievement of goals, o Maintenance of internal and external equity; o Significance to the employer and the worth of salary to the employee. o Rewarding good performance; o Retaining appropriate expertise skilled;  o Rewarding skills and achievement of goals, skilled employees acquisition and training; o Cost effectiveness - resources mix for effective service delivery and administrative efficiency Objectives - employee o Performance of employees is influenced: o Ability – influenced by aptitude, training and experience and; o Motivation – influenced by various benefits: -remuneration and conditions of service: o Significance to the employer and the worth of salary to the employee. o Ethical considerations – obligation of the government towards citizens; e.g. The notion of ‘a living wage’; o Reward for training, acquisition of skills and prestige. o Reward for ability, aptitude and skills, o Social significance: Incentives compensation o Incentive compensation differs from other forms of compensation in that it constitutes an additional reward for outstanding efforts aimed at achieving institutional goals. o Benefits are linked to employment rather than performance and may be described as an indirect form of compensation that is mainly intended to improve the quality of work. o Incentive schemes are devised as an attempt to link rewards to superior performance in a direct and prompt way. o These incentives may be created to increase institution competitiveness in the labour market, to stimulate individual, team performance, to encourage employee identification with the institution objectives and values, to control fixed compensation costs by putting portion of pay at risk if objectives are not achieved Requirements for effective incentive plan o Establish a pay for performance work culture o In order for an incentive scheme to achieve its desired results, the organisational culture must therefore be conducive to the principles of individual merit and performance. o Ensure employee acceptance o Employees and their reps, such as trade unions must accept the incentive scheme and this must be fostered by effectively communicating the benefits of the scheme o Set high but attainable standards of performance o Performance targets should be attainable, and become progressively more difficult to achieve as the levels of potential reward o Provide for flexibility and review o Schemes must be flexible to allow adjustments that may be called for by changes in the business environment, areas such as performance factors and motivational values must be changed on an ongoing basis. o Ensure effective administration o The ongoing success of an incentive is determined by the efficiency of the administrative support structures, vital administrative issues include:  o Effective ongoing communication for addressing q’s and complaints o Consistent & fair application of the rules o Sufficient budget provision and timely payment in accordance with the rules Problems with pay for performance o The subjective nature of performance assessment and difficulties in eradication the resulting inconsistences create the risk of pay differences that cannot be justified. o Lack of objective, quantitative performance measures o Failure to relate aspects of performance that are rewarded to the overall strategic performance objectives o Inadequate communication o Trade unions resistance to performance based schemes and to change in general Employee benefits o Benefits are indirect forms of compensation which like direct compensation are intended to aid the achievement of the HR objective of attracting, retaining and motivating employees. o Extend and nature of benefits commonly offered by the institutions are largely determined the country circumstances and laws. o Employment equity also leads to institutions providing benefits that may otherwise not have been provided. Types of employee benefits o SA offers a wide range of benefits o They are available to employees while on the job (such as shift allowance and coffee breaks) as well as off the job (such as private use of company cars and vac payments). o They are also provided to the families and dependants of employees such as (medical aid and life insurance). o Benefits can be categorised into cash & non cash benefits. o Non-cash benefits are further subdivided into current benefits (that is, those enjoyed immediately and deferred benefits (that is, those enjoyed at some future date) Incentives/benefits o Pension and retirement benefits o 13th cheque; o Share bonus; o Housing allowances; o Medical aid and medical insurance benefits; o Leave benefits: vacation leave, sick leave; leave without pay; study leave; maternity and paternity leave, o Group life insurance and credit associations; group car schemes; catering and recreational facilities; o Performance improvement facilities o Other fringe benefits and incentives to enhance performance; o Leave benefits: vacation leave, sick leave; leave without pay; study leave; maternity and paternity leave, 13th cheque, share bonus; A Total Reward Strategy UNIT 6 - PUBLIC SECTOR LABOUR RELATIONS o Managing the relationship between public sector employers and their employees has become a complex function of HR PUBLIC SECTOR LABOR RELATION FROM 1994 ONWARDS o Political power changed hands in April 1994 when the ANC dominated Government on National Unity took over. o We moved to constitutional democracy o This was the era of transformation in labor relations and democratization of worker rights and collective bargaining. The following key issues have been addressed since 1994. TRANSFORMATION o A White Paper On The Transformation Of The Public Service was introduced in 1995, which entailed a strategic framework for change with eight specified transformation priorities and processes. These priorities and processes were as follows: o Restructuring of the public service o Representativeness and affirmative action o Transformation of service delivery o Democratization of the state o Human resource development and training o Professional service ethos and o Employment conditions and labor relations. o In order to address employment conditions and labour relations, the government introduced the following related measures: o A minimum wage of 1500 o Implementation of equal pay for work of equal value o Reduction of differentials in pay and benefits in line with international norms o Development of appropriate career paths o Improvement of the conditions of women and people living with disabilities. DEMOCRATIZATION OF WORKER RIGHTS AND COLLECTIVE BARGAINING o The Public Service Relations Act of 1994 was replaced by the Labor Relations Act 66 of 1995 (LRA) which provides for labor relations in the private sector as well in the public sector. o The LRA provides, among other things, for: o Bargaining councils in the public service; o Workplace forums; and o Labor court. TRANSFERAL OF MANAGEMENT AUTHORITY  o Since 1996, the labor relations function has been transferred from the Public Service Commission (PSC) to the Department of Public Service And Administration (DPSA) o DPSA has been stablished to provide policy-making support to the Minister of Public Service and Administration. o Public Service Act entrusts the Minister with powers and duties to make policy on HR functions such as Labor relations THE PARTIES INVOLVED IN LABOR RELATIONS: ROLES, DUTIES AND RIGHTS o The labor relation system is made up of three parties which exist in a tripartite relationship: The two primary parties are o 1st is employers (Management and their representatives) and o 2nd is Labor and their representatives such as trade unions o 3rd (secondary) is the government in its regulatory role (as opposed to its role as an employer). Role of the government o The role of gov. as a third party is create and enforce the legal framework which can regulate the rights and duties of the two primary parties. o …it plays a role of master and referee in that it has to enforce all those laws pertaining to the deference dimensions of labor relations in a country. o …It also plays a role of a servant in that it can offer the necessary assistance to enable primary parties to conduct their relations in a sound and mutually acceptable manner Role of the employer o Employers want their instructions to be successful; o Public sector management must therefore see to it that the right things are done in the right way to ensure the achievement of the institution’s objectives. o Public management’s role is traditionally to make the necessary decisions regarding the optimal utilization of all the institutional resource. Responsibilities of management in the public sector, thus, include the following: o Protecting and serving the interest of employees. o Determining objectives o Arranging for the optimal utilization of the institution’s resources (including the human resources); o Ensuring customer satisfaction o Ensuring that the necessary standard service quality are maintained; and o Ensuring that all operations of the institution are conducted in a cost-effective and efficient manner, which will include the control of labor costs. Role of public sector employees o It is a duty of public sector employees to hire out their labor potential (energy, skills, knowledge, abilities, etc.) to perform a certain work on behalf of the employer, under the control of management. A particular role of employees include:  o Behaving in the required manner at work; o Performing their work as required; o Remaining obedient and loyal to the employer o Complying with reasonable rules and instruction; and o Exercising the right to associate, bargain, and strike in a responsible PUBLIC SECTOR EMPLOYEES’ RIGHTS o A right is the ability to engage in conduct that is protected by law or social sanction, free from interference by another party. Statutory Rights o Statutory rights are protected by law enacted by the government. Public sector employees’ key statutory right is protection from discrimination based on race, gender, sex, pregnancy, marital status, ethnic or social origin, colour, sexual orientation, age, disability, religion, conscience, beliefs, culture, language, and birth... Contractual Rights o Contractual rights are based on the law and the context of employment contracts. An employment contract spells out the terms of the employment relationship for both the employer and the employee, and is legally binding. Other Rights o Normally these rights are not included in the legally bound laws or contracts. o Therefore, public sector employees cannot opt for legal resource if they feel that these rights have been violated by the employer. o These rights are enacted so that public managers commit to the following principles of behavior. Principles of Behavior o Take deliberate actions & develop trust and making commitments on certain issues in the workplace. o Act consistently at all times by making decisions in such a way that employees are not surprised. o Demonstrate integrity by honoring confidentiality. o Deal fairly professionally, and equitable with all employees. o Demonstrate respect towards employees. OVERVIEW OF TRADE UNIONS o Trade unions have played a role in transforming the country from an apartheid society to a democracy, but they also remain major stakeholders and role players in governance of the country today. Why Trade unions exist o They want to promote the establishment of merit systems and the prevention of political-based hiring and firing. o They try to improve the working conditions of their members as well as their terms of employment. o …ensure that employees are treated fairly at work.  o …ensure that employees get fair share of the wealth generated by organization. o …Aim at improving social security o …Aim to achieve greater democracy in the governance of individual organization. o …Aim in getting greater control over the management of employment relationships within institutions. o …Strive to do away with class structures in societies where some have a great deal while some have very little and many are not employed at all. How trade unions operate: Structure and Methods o They have to plan and set objectives, they have to be structured (or organized), leadership is essential, and control has to be exercised. o Structuring of union may differ accordance with variables such as type, size, policy and affiliation to a federation o Trade unions are democratic institutions, and employees usually join them voluntarily. o In many cases so far the CCMA has allowed trade unions with far less than 50% membership the right to demand. o Access to the workplace o Deduction and pay-over of union fees; and o Leave for union activities o The membership elect shop stewards to act as a link between the union, the member, and the management of the institutions. o These shop steward committees thus make up the next structural layer (above the membership based) of the trade union. o Unions are democratic institutions. o All union policy decision are made at the level of the national congress. o The national congress represents grassroots membership and elect executive. The overall management of trade unions thus rests with the executives at the various structural levels Prominent public sector trade unions o Staff Associations: These associations are involved in advisory forums, consultation and full scale negotiations. Examples of staff associations in the South African public service include Public and Allied Workers Union in South Africa (PAWUS), the United National Public Servants Association of South Africa (UNIPSA), the Public Servants Association of South Africa (PSA) and the Public Service Union (PSU). o Professional Associations: have been established to represents interests of highly skilled employees. Mainly concentered with entry to the profession through certification and training requirements. SAMA, DEMOSA, SAICA o Trade Unions: Have a more militant approach, have a clear commitment to negotiations on behalf of their members, NEHAWU, SADTU, SAPU THE LEGAL CONTEXT OF PUBLIC SECTOR LABOR RELATIONS o Government has tried to balance the employment relationship by enacting legislation that is aimed at:  o Determining the rights, duties, and responsibility of public sector employer; o Recognizing and promoting the collective dimensions of labour relations – referring to unionism; o Protecting individual employee by requiring the employer to comply with at least certain minimum standards concerning working conditions. Constitution of Republic of South Africa, 1996 o In Chapter 2 of the 1996 constitution, we find a bill of rights of employers and employees in the workplace. Section 23 of the 1996 Constitution deals with labor rights. These includes the following: o Everyone has a right to fair labor practice o Every worker has a right: o To form and join a trade union o To participate in the activities and programs of a trade union; and o To strike Labor Relations Act 66 of 1995 (LRA) o The underlying principles of the LRA is to promote the right to fair labor practices in the public sector workplace. o It gives public sector employer, employee, unions, and employer institutions the following rights and obligations: o Freedom of association o Organizational rights o Unfair dismissal o Unfair labor practice o Strikes and lockout o The Act provides for forums to be established by the parties (bargaining councils, statutory councils, and workforce forum) on which employers’ representatives and employees’ representatives can interact on matters of mutual interest and prevent or resolve disputes which may arises between them. o The Act also provides for the establishment of the Commission for Conciliation, Mediation and Arbitration (CCMA) and specialist courts (the labour court and the Labour Appeal Court) to adjudicate and resolve certain labour matters. Basic Conditions of Employment Act 75 of 1997 o The primary objection of the Basic Condition of Employment act is to give effect to and regulate the right to fair labour practices conferred by section 23(1) of the 1996 Constitution. o The act set outs minimum provision for basic conditions of employment o The minimum provision for employment provided in the Basic Condition of Employment Act 75 of 1997 are as follows: o Hours of work including night work; o Overtime and overtime payments;  o Pay for work on Sunday and public holidays; o Annual and sick leave, maternity leave and family responsibility leave, o Remuneration details and severance pay; o Termination of employment Occupational Health and Safety Act 85 of 1993 o Main purpose of the Act and that is the regulating and ensuring of health and safety standards by public sector employers as well as public sector employees. o The Act covers four main principles o It imposes certain roles, duties, functions, rights, and powers on employers and employees to ensure a healthy a safety working environment. o It requires a system of self-regulation through which health and safety representatives have to be appointed. o It provides for system of consultation, as a health and safety committee must be established. o It requires a system of policing, as a chief inspector and other inspector may be appointed by the Minister of Labour to enter premises… Employment Equity Act 55 of 1998 o Employment Equity Act focuses is discrimination – past and present. o The overall objectives of the Act include the elimination of employment discrimination, the promotion of equal employment opportunities, and the implementation of affirmative action to redress the effects of discrimination to achieve a representative workforce. o Several provisions in the Act that public sector employers have to comply with: o Steps must be taken to promote equal opportunities o Medical testing of employees is prohibited unless legislation permits or medical facts justify such testing. o Employers must consult with employees on affirmative action policies. o Employment equity plans must be prepared containing specific affirmative action measures. o An employment equity manager must be appointed. o Reporting must be done in the department of labor. UNIT 1 - GENERAL OVERVIEW OF HRM IN PUBLIC INSTITUTIONS PSHRM: MEANING o Generalist vs Absolutist view o Generalist – holistic and multidimensional o Absolutist – very specific way/ style of managing employees o For these purposes, a generalist view is adopted:  o PSHRM deals with theory and practice of management concerned with all the factors, decisions, principles, strategies, operations, functions, processes, activities related to personnel in public institutions (van der Westhuizen et al., 2011:4) Meaning of PSHRM o PSHRM - A field of study, theory and practice concerned with all the policies, factors, decisions, strategies, functions related to employees within public institutions; o a management system that regulate all the processes and procedures related to employees in public sector institutions; o focus on public sector which has unique dimension; o guided by legislative framework and guidelines. Differences between Administration in the Public and Private sectors o The main aim of administration in the private sector is to maximise profit from capital invested; o is characterised by private initiatives, free market, struggle to survive and making profit; o The main aim of administration in the public sector is to promote the wellbeing of the citizens; o no profit motive; o environment of the public administration is politically oriented; o scope of functions is more complicated, diverse, pluralistic than in the private sector; o A clear distinction is applied when efficiency, effectiveness, responsiveness measures are applied o There is a shift from personnel administration to human resource management o Different titles and names used in HRM o Personnel management o Administration manpower management o Different names for structures in HR o Personnel department o Personnel section o Human resource department o Different names for people who specialised in HR function o Personnel officers o Managers CHARACTERISTIC OF PSHRM o It has management perspective o It focuses on the public sector o It utilises certain resources to guide the HR function optimally o It is guided by certain ethics  o Behaviour o It is an integrated process that comprises four activities that are connected to each other. THE MANAGEMENT PERSPECTIVE OF PSHRM o Management’s role in public sector institutions o The goal of the public sector institution o Effective and efficient Management as a field of the study o Utilisation of all public sector institution’s resources o These resources can be tangible or intangible o They include natural resources, financial resources, technological resources, and human resources. o Why is HRM important to all public sector managers. o HRM mistakes that managers wants to avoid o Hiring the wrong persons o High staff turnover o Employees not performing well o Inefficient job interviews o Court cases because of discriminatory actions o Unsafe working conditions o Unfair labour practices o Incompetent staff PSHRM AS A SPECIFIC RESPONSIBILITY o Public sector managers are responsible for the management of public institutions: o Utilisation and training of staff. o Maintenance of discipline. o Promotion of sound labour relations. o PSHRM responsibility according to White Paper on Human Resource Management 1997: o treats all public servants as a valuable resource; o service delivery outcomes; o assigns managerial responsibility for results, and for the resources consumed in producing them, to the lowest practicable level; o holds public servants accountable for their actions; and o conducts its business professionally, transparently and ethically. o Relationship with line functions employees and HR specialist (staff employees). White Paper on Human Resources Management in the Public Sector o It promotes managerial autonomy. o Public sector will result in diverse, competent, and well-managed workforce. o Should become a model of excellence. o Values: Fairness; Equity; Accessibility; Transperancy; Accountability; Participation and Professionalism o Human resource management department needs radical changes: o Increased delegation of managerial responsibility and authority. o The development of a service delivery-oriented, multi-skilled and multi-cultural workforce. o The continuing drive for efficiency and effectiveness. o Creating a flexible environment that takes into account both the operational needs of the organisation and the needs of the employees. New human resources management o Introduction of the HR policies in the public sector: employment justice, cultural diversity and transparency o Human resources planning o Employment contracts o Flexible working hours o A career public service o Increased career competition o Selection on merits o Recruitment: cost effective recruitment o Placement; Career management, Managing conduct and grievances; Termination of Services o Probation, Lateral transfers, Secondments, Re-employment, Performance management o The responsibilities of the line function employees o Establishing job qualifications o Selecting and orienting new employees o Interpreting and executing HR policies and regulations o Training and developing employees o Improving the job performance of each employees o Controlling labour costs o Protecting health and physical conditions of employees, and o Initiating disciplinary actions. The responsibility of the HR specialist o Drafting HR policies  o Consultation with line function employees o Provision of routine HR services o Evaluation of HR policies and procedures o Monitoring the activities of line function section o Notifying the treasury of HR budget proposals PUBLIC DIMENSION OF PSHRM o What is ‘public’ within the larger context of public administration? o Public = complex and difficult due to the wide terrain o A way of mapping out the public sector boundaries – identification of the array of public sector institutions in which HRM takes place o Public sector as a concept is made up of the public service and statutory bodies, parastatals and quasi- government institutions KEY PSHRM FUNCTIONS AND OUTCOMES o Strategizing and planning for public sector human resources o Strategies in relation to institutional objectives o i.e. establishing objectives first and then strategizing accordingly o Obtaining suitable human resources o Formulating and employing equal opportunity requirements and policies o Recruiting, selecting and appointing qualified applicants o Utilizing and developing public sector employees o Appraising, learning, training and development as well as career management o Remunerating and caring for public sector employees o -Includes remuneration, incentives and counselling o Public sector employee relations o Activities such as labour relations, dismissals and outplacements PSHRM OUTCOMES o In performing well – there is differing viewpoints o In the public sector, performance is in relation to the effective and efficient manner in which public institutions reach their mandate o There are however different yardsticks by which government performance is measured. o Outcomes of PSHRM provide the measurement (i.e.all activities must be performed in order for outcomes to be achieved. o OUTCOMES DERIVED FROM THE 1996 CONSTITUTION [As summarised in the White Paper on Human Resource Management in the Public Service (1997:20-21)]  o Promotion of Fairness o Application of equity principles o Encouragement of Accessibility o Fostering transparency o Demonstrating Accountability o Increasing Professionalism Chapter 5 - Staffing of an organization Introduction o Staffing an organisation involves bringing people into it, who will fit not only into a particular job but also into the work of the organisation o Some of the most important decisions managers must make is concerned with staffing as staffing influences how effectively work is done o Staffing process involves: o Recruitment o Selection o On boarding Recruitment o Recruitment is about attracting a pool of potential candidates from which an ideal person can be selected. o Recruitment should be conducted as cost effectively as possible o Just as organizations are searching for candidates, so too are potential employees searching for suitable organizations to work for. (2-way process) o Recruitment must be integrated with selection o Legal requirements must be adhered to during recruitment o The recruitment process o Step 1 – Identify the need to recruit o Step 2 – Update the Job Description, Job Specification & job profile o Step 3 – Refer to the Recruitment policy o Step 4 – take into account Factors affecting the recruitment process o Step 5- Consider the source of recruitment o Step 6- Choose the appropriate recruitment method o Step 7- Develop the recruitment advertisement o Step 8 – Place the advertisement o Step 9- Ensure application blanks are available Step 1 – Identify the need to recruit  o The need to recruit may arise from the creation of a new job or from a vacancy being created by someone resigning or being promoted Step 2 – Update the Job Description, Job Specification & job profile o Updating the JD, JS and profile helps clarify the nature of the job and identify what one will be looking for in a candidate. o It directs the recruitment and selection process. Step 3 – Refer to the Recruitment policy o The recruitment policy provides guidelines for carrying out the recruitment process o The organizations recruitment policy should address the approval to recruit, who will be part of the recruitment process, advertising guidelines, shortlisting guidelines etc.. Step 4 – Take into account Factors affecting the recruitment process: o Legislation o As soon as someone applies for a job that person must be treated as an employee with respect to the EEA. o It is illegal for advertisements of a specific gender or race unless one is trying to attract an individual from a disadvantaged group. o It is illegal to mention any requirement that is not directly related to the applicants ability to perform the job. o Timing o There are certain times when recruitment adverts are likely to elicit wider interest among potential applicants such as: o On Mondays and weekends o For graduates– directed at the end of their studies (not during examinations) o At the beginning of the year as people are likely to change their jobs at the beginning of the year o Need to also look at when the org requires the new employee and how critical it is to fill the position. o Labour Market conditions o need to consider the labour supply for the job being advertised o if there is an expected shortage of staff for a specific positon then the org will need to advertise more widely to attract suitably qualified candidates. o If there is a surplus of qualified individuals for the job being advertised then there will be a larger job processing the applications. Step 5- Consider the source of recruitment o Potential employees must be sourced either from within the company or externally o The recruitment policy provides guidance on the sources to consider for recruitment  o internal applicants are sometimes given preference in order to promote opportunities for current employees- this also reduces recruitment costs o If there is no suitable internal applicant then external recruitment is required or the org can decide to recruit externally from the start o External recruitment will bring in new perspectives o External sources of recruitment include employment agencies, headhunting, walk-ins, advertisements and campus recruitment Step 6- Choose the appropriate recruitment method o Advertisements in newspapers- need to know the readership of the relevant newspaper and the costs involved o Pamphlet distribution – at career exhibitions o Online advertising- on organizations website, social media pages o Employment agencies- Sheldon recruitment Step 7- Develop the recruitment advertisement o The advertisement must be appropriate for the method of advertising o Need to know the criteria which applicants will be assessed to place on the advertisement o AIDA should be followed when designing a recruitment advertisement AIDA o ATTENTION – through the size of the advert, position on page, layout and graphics, job title, company name and logo o INTEREST AND DESIRE- provide a brief organisation summary, nature of the job, type of person required, compensation o ACTION – invite applicants to apply, identify a contact person, provide the closing dates for the application Step 8 – Place the advertisement o Concerns implementing the decision made in step 6 (choosing the appropriate recruitment method) o Contact is made with the relevant newspaper and the advert is supplied for publication if advertising externally o if the organisation is advertising internally then it requires placing the job advert on the noticeboard and making copies for staff to distribute which increased word of mouth. Step 9- Ensure application blanks are available o Application blanks are the forms designed by the organisation that applicants will complete with their personal particulars, work and education background o An alternative is to request for the applicants CV which avoids the procedure of having the applicants complete the application blank forms o Online application processes should also be available for those who have access to the internet When analysing a CV the following will be looked at: o Time gaps in employment  o Lack of an employment history o Inconsistences o Vagueness Selection o The process of selecting the most suitable candidate from the group of people that you have recruited. o The selection process is driven by pre-determined selection criteria (job description, specification and profile) o Planning the selection process involves identifying what behavioural information can be collected and weight up against each of the selection criteria- CV o mistakes in selection can be very costly, EG on performance of carrying out the job Steps in the selection process o Step 1 – Screen and short list applicants o Step 2 – Contact the candidates on the shortlist o Step 3 – Conduct interviews o Step 4 – Check background information o Step 5 – Medical examinations o Step 6 – make a final decision o Step 7 – Job offer o Step 8 – keep records Step 1- Screen and shortlist applicants o All applicants CVs or application blanks are evaluated against the predetermined criteria o Here you will draw up a list of candidates who meet the certain minimum requirements for the job Step 2- Contact candidates on the shortlist o Shortlisted candidates need to be contacted and advised on the process to follow o They will be informed about the interview to follow o Those who do not make the shortlist need to be informed that their application was unsuccessful o It is professional to keep applicants informed of the outcome of their applications Step 3- Conduct interviews o Interviews are the most commonly used selection technique o They are a specialized form of communication conducted for a specific task o Interviews allows for staff to assess applicants directly and it provides the applicants an opportunity to learn about the organisation Step 4- Check background information o Verify details of candidate with the specified referees  o Carry out telephonic checks Step 5- Medical examinations o Only if required and permitted as indicated in the EEA Step 6- Make a final decision o The primary concern is whether the person will be able to fit into the organisation o Must also consider the way forward if the person declines the job offer o Will then determine if the runner up is suitable Step 7- make a job offer o Once the decision has been made to hire a particular applicant, contact the appointee congratulating the person on being selected o A letter should then be sent which includes the job description, title, remuneration. o the successful applicant in writing by a specific date must either accept or decline the letter o On acceptance the new person will start their first day of work as agreed and a letter of appointment Step 8- Keep records o All records of the recruitment and selection of staff o This is to ensure that the employer has the necessary evidence of the process should there be any enquiries or allegations of unfair dismissal Onboarding o A planned and structured process of assisting a new employee to function effectively within the organisation o Dealing with the stress of a new job o Making them feel comfortable – helping them to settle in more quickly Four components of successful onboarding o Compliance- employees are taught basic legal and policy related rules of the organisation o Clarification- employees understanding their new job o Culture- employees understanding the informal and formal norms of the organisation o Connection -employees building relationships and networks Chapter 13 - Training, development and learning Key definitions o Training - An attempt to alter or change the knowledge, skills and behaviour of employees in such a way that organisation objectives are achieved o Education - A process that provides knowledge, skills, moral values, and understanding required in the normal course of life, focused on developing people for the future o Development - Longer-term organisation-focused process that creates learning opportunities, thus making learning possible within an organisation – includes training and education processes and focuses on learning to develop the individual and his/her organisation Utilise all 1. 2. sources Identify the Formulate of data Training/Development Training/Developme for Needs nt Objectives accurate diagnosis Organisational Level Program Design The basic training and development and Development of needs Individual Level process 4. 3. Choose Appropriate Evaluate the Training/Development Training/Development Method and Deliver the and Follow up Program Management & supervisory development o …. is the process of educating and developing selected employees so that they have the knowledge, skills, attitudes, and understanding needed to manage and/or supervise specifically The objectives of management development are to: o Ensure the long-term success of the organisation o Prevent or reduce managerial obsolescence o Enable each individual manager to best utilise his or her full potential o Ensure that there are competent replacements for management/supervisory vacancies o Create an efficient team whose members work well together o Enable managers to create the necessary context for employees to fulfil their full potential in the organisation Benefits of training and development to a business o Increased ability of an employee to do his or her job at the required level o Improved employee performance and productivity o Reduced staff turnover and increased motivation o Reduced need to dismiss workers because of incapacity o Reduced costs, resulting from less wastage o Less supervision is required o Reduced breakage of equipment o The right attitudes are fostered o Lower probability of industrial accidents o Possibility for employees to exceed expectations of their role  o Benefits to employees themselves o Increased customer satisfaction The original objectives of the NQF were to: o Create an integrated national framework for learning achievements o Facilitate access to, and mobility and progression within education, training, and career paths o Enhance the quality of education and training o Accelerate the reparation of past unfair discrimination in education, training, and employment opportunities o Contribute to the full personal development of each learner and the social and economic development of the nation as a whole The New NQF Act introduced Quality Councils: o Higher Education (provided by Universities) o General and Further Education and Training (comprising formal schooling and Adult Basic Education and Training) o Trades and Occupations (contemplated in the Skills Development Act) The main purposes of the Skills Development Act o To develop the skills of the SA workforce o To increase the levels of investment in education and training o To encourage employers: o To use the workplace as an active learning environment o To provide employees with the opportunity to develop new skills o To provide opportunities for new entrants to the labour market to gain work experience o To employ people who find it difficult to be employed o To encourage workers to participate in learnerships and other training programs o To improve the employment prospects of previously disadvantaged persons o To ensure quality of education and training o To assist work-seekers to find work, retrenched workers to re-enter the labour market and employers to find qualified employees o To provide and regulate employment services Organisational learning o The modern global economy continues to move away from a manufacturing base towards a service base. In such an environment, the creation, use and management of knowledge has become central to the work of many employees Knowledge Defined o Knowledge can be defined as “a fluid mix of framed experience, values, contextual information, and expert insight that provides a framework for evaluating and incorporating new experiences and information. It  originates and is applied in the minds of knowers. In organisations, it often becomes embedded not only in documents or repositories but also in organisational routines, processes, practices, and norms.” Knowledge Creation o Knowledge creation often arises through the conversion of personal implicit knowledge into shared explicit knowledge o Socialisation o Articulation o Combination o Internalisation Organizational learning o Organizational learning is defined as the development of new knowledge or insights that has potential to influence behaviour Practising HRM o Approach a small to medium sized business (one that employs between 5 and 50 employees) and, with the permission of the owner or manager, conduct a training-needs analysis at the organisational level o Formulate training objectives from the needs and prepare a report for the owner or manager Learning o Reflect on what you have learnt from the chapter about training, development and learning within an organisation o In light of the outcomes of this chapter, discuss what you feel you can now do as a result of what you learnt from the chapter UNIT 9 - EMPLOYEE DEVELOPMENT & CAREER MANAGEMENT Defining of major concepts o Education o Creates the basis for learning that prepares an individual for life o Provides knowledge, skills, attitudes, values and understanding o Training o Helps people develop skills so that they can do certain jobs o A need has to be identified (eg new technology) o Brings about behavioural change to meet management needs o Development o Providing ongoing learning opportunities so that the employee can improve over a longer period and learn skills o Career o “sequence of jobs held during an individual’s working life  o Profession, occupation Macro environment in South Africa o Changing working environment o National strategic framework for human resource development (HRD) o National skills development strategy (NSDS) o Skills development for SMME's Changing working environment o Economic, technological, social and political factors changing the world of work globally o Globalisation o Online technology o Shift from people employed by large organisations to people working for themselves HR Development strategy (HRD) o Has its origins in RDP which identifies the people in SA as its most important resource and attempts to meet the needs of the economy o HRDS SA formulated to meet the following objectives: o Replace the existing HRD strategy o Address the shortcomings of the HRD strategy o Optimise efficacy and efficiency National Skills Development Strategy (NSDS) o Published by the Dept. of Labour o Aimed at promoting economic and development growth and social development o Ensures increased access to training o Key features NSDS III National Qualifications Framework (NQF) o Set of principles and guidelines that provides a vision and structure for national qualifications systems o To ensure that there are Qualifications available to meet the individual, social and economic needs of the nation NQF levels o NQF 5 Higher certificate o NQF 6 Diploma/Advanced Certificate o NQF 7 Bachelors degree/Advanced diploma o NQF 8 Honours /PG diploma/Bachelors degree o NQF 9 Masters degree  o NQF 10 Doctoral degree o A qualification must: o add value to the qualifying student o Represent a planned combination of learning outcomes o Provide benefits to society and the economy o Be internationally comparable o Embody specific and critical cross-field outcomes that promote life-long learning Legislation governing T&D in SA o National Qualifications Framework Act o Skills Development act o Skills Development Levies Act Training and development policy o Why do organisations offer training and development o Based on certain assumptions and principles o Place of the training function: o Sub-systems o Different processes o Unique needs o HR functions o Labour Relations Why offer T&D o Image of organisation is enhanced o Contributes to productivity and quality of work o Interpersonal relationships are improved o Morale of employees is improved o Contributes to organisational development o Employees are able to adjust more readily to change o Job knowledge and skills of employees improve o Employees are developed for future positions GENERIC TRAINING MODEL o Stage 1: Training needs assessment o Happens at three levels: o Organisational analysis (absenteeism, turnover)  o Operations analysis (what is the correct way to perform a job) o Individual analysis (employees needs, how can the employee add value in terms of skills and knowledge) o Skills audit: o What skills exist within the organisation o What are skills development priorities? o How do we implement an track and monitor progress? o Stage 2: Training design and development o Develop learning outcomes o Consider needs, level of expertise, educational background, language, time, cost o What is expected of trainer and participants? o Stage 3: Preparing and presenting the training programme o Identify presentation methods o Develop a lesson plan o Select and book training venue o Prepare and inform role-players o Prepare the training venue and material o Stage 4: Assessing learning and evaluating T&D Training and development delivery approaches o Off-the-job training o Lectures o Discussions o Simulations/Vestibule o Role-playing o Adventure training o On-the-job (OJT): o Coaching o Job rotation o Job enlargement and enrichment o Understudy o Mentoring o Learner-controlled instruction o Internship  o Learnership training Contemporary delivery approaches o E-Learning or online learning o Computer based training o Interactive video o Web-based training: o Internet based training o Intranet based training o Worldwide web (www) o Virtual reality o Mobile technology o Other new technologies: o Blogs o Moblog o Vlog o Wiki o Podcast o RSS o Facebook o Twitter. o Mix mode training o Action learning o Adventure learning Issues applicable to training & development in the SA context o Adult learning o Diversity training o Recognition of prior learning (RPL) Benefits of training & development to an organisation o Improve job knowledge o Identify o Authenticity o Relationship o Guidelines  o Policies o Decision making o Promotion o Productivity o Costs o Consulting o Behavior o Climate o Change Outcomes o Differentiate between the concepts of education, training and development o Critically analyse the training and development initiatives introduced by the South African government o Explain the purpose and objectives of the legislation that governs training and development in South Africa o Discuss the importance and role of the training and development function in organisations o Describe the generic contemporary model of training and development o Identify and apply appropriate training methods to a particular training situation o Differentiate between employee development and career management o Draw up a programme to establish a career path for an employee. Importance of Learning Differences Education is about providing the knowledge, skills, attitudes, values and Training helps people develop skills so understanding that that they can do certain jobs or tasks people require in the normal course of life Development is about providing ongoing learning opportunities so that employees can improve over a longer period and learn skills NSDS other than those required in their current or immediate job situation SAQA NQF Nnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnn Frameworks of Learning Legislation NQF o There are three training and development-related Acts that create the structures and framework to support the NSDS III, namely: o National Qualifications Framework Act (No. 67 of 2008) o Skills Development Act (No. 97 of 1998) o Skills Development Levies Act (No. 9 of 1999) Skills Development Levies Act o A skills development levy which employers in certain categories are required to pay. o The purpose of the Skills Development Levies Act (SDLA) is to encourage skills development of employees by their employers. Purpose of Training o The job knowledge and skills of employees improves o Employees are developed for future positions o The morale of employees is improved and employee turnover is reduced o The image of the organisation is enhanced o Interpersonal relationships are further improved o It contributes to organisational development o It contributes to increased productivity and quality of work o It reduces costs and wastage because of more efficient work practices o The organisational climate is improved o Employees are able to adjust more readily to change o A positive climate for growth and communication is created. The Contemporary Model