CONTEMPORARY HUMAN RESOURCE MANAGEMENT › documents › ModulesJuly2016 › BBA... · • Basic...

Bachelor of Business Administration

Honours

CONTEMPORARY HUMAN RESOURCE MANAGEMENT

STUDY GUIDE

Copyright © 2016 MANAGEMENTCOLLEGE OF SOUTHERN AFRICA

All rights reserved; no part of this book may be reproduced in any form or by any means, including photocopying machines, without the written permission of the publisher.

Please report all errors and omissions to the following email address: [email protected]

Contemporary Human Resource Management

MANCOSA – BBA (HONS) i

TABLE OF CONTENTS

INTRODUCTION ................................................................................................................................................. 1

CHAPTER 1 INTRODUCTION TO HUMAN RESOURCE MANAGEMENT ........................................................ 6

CHAPTER 2 THE STRATEGIC AND OPERATIONAL ROLE OF HRM IN AN ORGANISATION .................... 16

CHAPTER 3 HUMAN RESOURCE STRATEGY AND BUSINESS STRATEGY .............................................. 27

CHAPTER 4 TALENT PLANNING AND WORKFORCE PLANNING ................................................................ 38

CHAPTER 5 RECRUITMENT AND SELECTION ............................................................................................. 47

CHAPTER 6 TRAINING NEEDS ANALYSIS .................................................................................................... 61

CHAPTER 7 COMPENSATION SYSTEMS ...................................................................................................... 71

CHAPTER 8 PERFORMANCE MANAGMENT AND APPRAISAL .................................................................... 79

CHAPTER 9 LABOUR LEGISLATION IN THE HRM ENVIRONMENT ............................................................. 91

REFERENCES ................................................................................................................................................ 103


MANCOSA – BBA (HONS) 1

INTRODUCTION



INTRODUCTION Greetings and welcome to the course on Module name.

Course Overview The broad areas covered by this module include:

• The sphere of responsibility of human resource management;

• The strategic and operational role of human resource management in the context of organisation;

• The relationship between a human resource strategy and business strategy;

• The movement of employees into and out of an organisation;

• The recruitment and selection process;

• Undertaking a training needs analyses;

• Compensation system for a small enterprise;

• Performance appraisal techniques and their uses;

• Basic benefits and services for employees; and

• The impact of labour legislation in the human resource environment of an organisation.

AIMS OF THE MODULE:

This module has been designed and written to assist in achieving learning outcomes as reflected in the

following areas.

• Introduce the student to the field of Contemporary Human Resource Management;

• Develop the student’s understanding of the strategic and operational role of human resource

management in the context of and organisation;

• Develop the student’s understanding of the integration between a human resource strategy and

business strategy;

• Develop the student’s understanding of human resource planning;

• Develop the student’s understanding of the human resource management practices

of recruitment and selection;



• Develop the student’s understanding of conducting a training needs analysis;

• Develop the student’s understanding of developing a compensation system in context;

• Develop the student’s understanding of the basic benefits and services for employees;

• Develop the student’s understanding of performance management and various performance appraisal

techniques; and

• Develop the student’s understanding of the labour legislation underpinning HRM in an organisation.

Module Assessment

Assignment

You will be required to complete and submit an assignment. This assignment is assessed as part of your

coursework. Therefore, it is very important that you attempt to complete it.

Examination

An examination will be written at the end of each semester. The assessment strategy will focus on application

of theory to practice.

General

At a Post Graduate level students are expected to read widely and show the marker that they have the ability

to analyse a variety of viewpoints, and to hold a specific position of their own (backed by theoretical

justification).

RESOURCE LIST

If it is at all possible, try to access the websites, journals and other sources of pertinent information such as

newspapers, newsletters, etc. A Resource list is attached at the back of the manual. Please feel free to update

this.



HOW TO USE THIS MODULE

? THINK POINT A think point asks you to stop and think about an issue. Sometimes you are asked to apply a concept to your

own experience or to think of an example.

!ACTIVITY You may come across activities which ask you to carry out specific tasks. In most cases there are no right or

wrong answers to these Activities. The aim of the activities is to give you an opportunity to apply what you

have learned.

&READING

At this point you should read the reference given to you.

PRACTICAL APPLICATION – EXAMPLE

Real business examples or cases will be discussed to enhance understanding of Human resource

management.

? REVISION QUESTIONS

You may come across self-assessment questions which test your understanding of what you have learned so

far.

&CORE READINGS FOR THIS MODULE The major texts for this Module are:

Prescribed Book:

• Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M. (2015) Human Resource Management:

Gaining a Competitive Advantage 9th Ed. McGraw-Hill.

• Nel, P.S., Werner, A., Botha, C., du Plessis, A., Mey, M., Ngalo, O., Poisat, P., and van Hoek, L. (2014)

Human Resource Management. 9th Edition. Cape Town: Oxford University Press Southern Africa.



Additional recommended reading

• Wärnich, S., Carrell, M.R., Elbert, N.F., Hatfield, R.D (2015) Human Resource Management in South

Africa. United Kingdom: Cengage Learning.

• Grobler, P., Bothma, R., Brewster, C., Carey, L., Holland, P., and Wärnich (2014) Contemporary Issues in

Human Resource Management. South Africa: Oxford University Press.



CHAPTER 1 INTRODUCTION TO HUMAN RESOURCE

MANAGEMENT



LEARNING OUTCOMES:

After studying this chapter you should be able to:

1. Describe the various Human Resource Management practices and discuss its integration into the overall human resource function of the organisation.

2. Understand the roles of the HR department and the HR manager.

3. Understand the strategic role of the HRM function.

4. Explain the responsibilities for HR functions.

5. Identify current issues and challenges facing HRM.



ESSENTIAL READING Learners are required to read ALL of the relevant textbook parts and journal articles listed below.

Textbooks:

• Nel, P.S., Werner, A., Botha, C., du Plessis, A., Mey, M., Ngalo, O., Poisat, P., van Hoek, L. (2014)


• Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M. (2015) Human Resource Management: Gaining

a Competitive Advantage 9th Ed. McGraw-Hill.

Journal Articles and Reports:

• Azolukwam, V.A., Perkins, J.S. (2009) “Managerial Perspectives on HRM in Nigeria: Evolving

Hybridization?” Cross Cultural Management: An International Journal. 16 (1), pp 62 – 82. (available from

Emerald).

• Bartram, T., Stanton, P. & Thomas, K. (2009) “Good Morning Vietnam: New Challenges for HRM.”

Management Research News. 32 (10), pp 891 – 904.

• Brewster, C., Paauwe, J. (2009) “In Search of Balance – Managing the Dualities of HRM: An Overview of

the Issues.” Personnel Review. 38 (5), pp 461 – 471. (available from Emerald).

• Brewster, C., Morley, M. & Buciuniene, I. (2010) "The Reality of Human Resource management in

Central and Eastern Europe." Baltic Journal of Management. 5 (2), pp. 145 – 155. (available from

Emerald).

• Chand, M. & Katou, A.A. (2007) “The Impact of HRM Practices on Organisational Performance in the

Indian Hotel Industry.” Employee Relations. 29 (6), pp 576 – 594. (available from Emerald).

• Eyring, M.J., Johnson, M.W. & Nair, H. (2011) “New Business Models in Emerging Markets.” Harvard

Business Review. Jan/Feb, 89 (1/2), pp 88 – 95. (available from EBSCO).



1. INTRODUCTION The role human resource management (HRM) plays within organisations has changed dramatically. Having

excluded HRM from participating actively in business decisions for most of its existence, organisations now

require HRM to play an active role in the fight to be successful and remain competitive.

Due to the rapid changes that have taken place within the organisation as well as in the role of HR

professionals, few successful businesses can continue to rely on past policies and practices, while their HR

professionals can ill afford to continue to be functional experts. Management and HR professionals must

become partners in decision-making and share accountability for organising the work to be performed (Grobler

et.al, 2014).

1.1 HUMAN RESOURCE MANAGEMENT PRACTICES Human Resource Management (HRM) refers to the development and application of policies, systems,

practices and procedures that direct the thinking, attitudes and behaviour of people in the organisation towards

performance to support the vision and short and long term objectives of the organisation, while at the same

time satisfying personal needs (Nel and Werner, 2014).

According to Noe et. al (2015) Human resource management refers to the policies, practices, and systems

that influence employees’ behaviour, attitudes and performance.

There are several important HR practices in an organisation. Effective HRM practices support business goals

and objectives. In other words effective HRM practices are strategic. The strategy underling these practices

need to be considered to maximise the influence on company performance.

According to Noe et.al (2015) HRM practices include:

• Analysis and design of work

• HR Planning

• Recruiting

• Selection

• Training and development

• Compensation

• Performance management

• Employee relations

Effective HRM has been shown to enhance company performance by contributing to employee and customer

satisfaction, innovation, productivity and the development of a favourable reputation in the organisation’s



community. The potential role of HRM in company performance has only recently been recognised (Noe et. al,

2015).

1.2 ROLES OF THE HR DEPARTMENT The primary task of the HR department is to ensure that the organisation’s human resources are utilised and

managed as effectively as possible with the ever-changing environment. HR administrators help design and

implement policies and programmes that enhance human abilities and improve the organisation’s overall

effectiveness (Wärnich et. al, 2015).

According to Noe et. al, (2014) many different roles and responsibilities can be performed by the HR

department depending on the size of the company, the characteristics of the workforce, the industry and the

value system of company management.

The HR department may take full responsibility for human resource activities in some companies whereas in

others it may share the roles and responsibilities with managers of other departments such as finance,

operations, or information technology.

One way to think about the roles and responsibilities of HR departments is to consider HR as a business within

the company with three product lines;

Table 1 HR as a business with Three Product Lines - Source: Noe et.al (2015; 7)

Administrative Services and Transactions:

Business Partner Services: Strategic Partner:

• Compensation, hiring and staffing

• Developing effective HR systems and helping implement business plans, talent management

• Contributing to business strategy based on considerations of human capital, business capabilities, readiness and developing HR practices as strategic differentiators

Emphasis: Emphasis: Emphasis: Resource efficiency and service

quality

Knowing the business and

exercising influence – problem

solving, designing effective

systems to ensure needed

competencies

Knowledge of HR and of the

business, competition, the market

and business strategies.



! ACTIVITY Consider the organisation at which you are currently employed or an organisation you are familiar with and identify the product line the HR function at this organisation falls within.

1.1.1 The HR function and the success of an organisation Organisations wishing to remain competitive in today’s rapidly changing global marketplace need to address

the issue of achieving productivity through their employees.

How important is the HR function in the achievement of this?

According to Wärnich et.al (2015) successful rapid-growth companies were generally able to use the HR

function to solve problems and achieve success in the following ways:

• Having the HR directors report directly to the general manager

• Placing major emphasis on employee recruitment, selection and training

• Using team-building and creating an environment of rapid decision-making at lower levels.

• Communicating key company performance objectives through all programmes and linking them to goals at

all levels.

• Include HR planning as part of management’s strategic planning

• Involving line managers and working with them in a team to manage employees more effectively.

• Using technology to assist where appropriate.

1.1.2 HR Policies

HR Policies are guides to management’s thinking and they help management achieve the organisation’s HR

objectives. Policies help define acceptable and unacceptable behaviour and establish the organisation’s

position on an issue. Top HR officials are generally responsible for policy-making and may be drafted by an

HR committee for approval by the CEO. To be maximally effective, HR policies should be in writing and

communicated to all employees and be readily available through a policy manual (Wärnich et.al, 2015).

1.1.3 Advice and services

Managers often will turn to staff experts for advice and counsel.

The daily involvement with employees must be the responsibility of line managers but the HR department

should be able to give them advice and assistance in meeting the needs of their employees.

Some questions that HR staff members may be asked to answer include the following:

• How do I deal with an employee who I suspect is abusing substances?

• How do I meet my targets for employment equity without raising cries of “reverse discrimination”?

• How do I tell a high-achieving employee that the budget will not allow a merit increase this year?



• How do I counsel a manager who is suffering a mid-career crisis/substance dependency?

• How do I accommodate the different needs for flexibility of the workforce?

• How do I deal with an employee who has been with the company for 25 years but now can no longer

perform effectively?

• How can I increase employee morale?

• How do we promote teamwork and good communication amongst a workforce that consists of various

generations with different views and needs?

• How do we use technology to cater for the various generations and their different needs and views in the

workplace.?

(Wärnich et.al, 2015)

? THINK POINT Consider some of the problems that may arise in an organisation when line managers rely heavily on the advice of HR specialists.

1.1.4 Control functions

The HR department performs important control functions for the management of human resources. Common

control activities include the following:

• Collection and analysis of hiring, selection, placement and promotion data to ensure that employment

equity laws and policies are being observed.

• Analysis of performance appraisal records to determine if appraisals are being conducted in an unbiased

manner.

• Analysis of statistics on absenteeism, grievances and accidents (and other HR metrics) to determine

where problems are most critical and what may be done to reduce them.

(Wärnich et.al, 2015).

1.1.5 Policies and procedures HR has to ensure that all these aspects are dealt with fairly consistently and within the prescribed legislative

requirements through properly developed policies and procedures that are easily accessible to all employees

through the HRIS of the company (Wärnich et.al, 2015).

1.2 STRATEGIC ROLE OF THE HRM FUNCTION The amount of time that the HRM function devotes to administrative tasks is decreasing, and its roles as a

strategic business partner, change agent, and employee advocate are increasing. HR managers face two

important challenges:



• shifting their focus from current operations to strategies for the future.

• and preparing non-HR managers to develop and implement human resource practices.

To ensure that human resources contributes to the company’s competitive advantage many HR departments

are organised on the basis of a shared service model which can help control costs and improve the business

relevance and timeliness of HR practices.

A shared service model is a way to organise the HR function that includes:

• Centres of expertise or excellence – include HR specialists in areas such as staffing or training who

provide their services companywide.

• Service centres – are a central place for administrative and transactional tasks such as enrolling in training

programmes or changing benefits that employees and managers can access online.

• Business partners – are HR staff members who work with business-unit managers on strategic issues

such as creating new compensation plans or development programmes for preparing high-level managers

(Noe et. al, 2014).

1.3 RESPONSIBILITIES FOR HR FUNCTIONS The responsibility for performing the HR function does not reside only in the HR department; all managers at

all levels of the organisation share in that responsibility. For example, the branch manager of a bank will

normally interview job applicants, orient new employees, train and develop new and current employees,

evaluate employee performance etc.

Strengthening factors Weakening factors • Political/visionary skills possessed by HR

practitioners

• Inept HR practitioners

• Perceived competence of HR staff • HR function performing only a servicing role

• Top management support • Lack of top management support

• Involvement in strategy-making • HR managers not involved in strategy

process

• Ongoing need for staff development training • Training undertaken by line units

• Large-scale reorganisation in training • Stable organisation with little demand for

change

• Expansion of business requiring emphasis on • Static business conditions



In most organisations, particularly larger ones, the HR staff design HR policies and procedures and the

operating managers implement them. On occasion, line managers help design HR polices and HR staffers

help implement them; but the primary responsibility for implementation of HR policies and procedures rest with

those who are responsible for the day-to-day supervision of subordinates. There are certain factors that tend

to strengthen the standing of HRM and others tend to weaken it.

These are summarised in the Table below:

Table 2 Factors influencing the standing of HRM specialists in organisations Source: (Wärnich et.al, 2015)

? THINK POINT In the organisation that you are currently employed at, identify the factors that strengthen and weaken the HRM standing. Would you say HRM has a strong or weak standing in your organisation?

PRACTICAL APPLICATION – EXAMPLE At Ingersoll-Rand, a company with 25000 employees and operations in more than 60 countries, HR was transformed from just doing traditional HR work such as recruitment, benefits, training, and compensation into a team of consultants whose job was to work with managers to understand the issues and problems they faced in managing the company’s human capital. As consultants, HR focuses on identifying gaps or barriers preventing employees and managers from attaining business goals, finding ways to fill the gaps, and developing and delivering talent management solutions that include drawing from traditional HR responsibilities but in a problem-focused way. Ingersoll-Rand’s business strategy is to grow in emerging markets around the world.

recruitment and training

• Crisis in employee relations, especially where

trade unions are involved

• No challenge from workforce

• Business critically reliant on people as

opposed to technology (e.g. services)

• Role of people less important than that of

technical considerations



1.4 CURRENT ISSUES AND CHALLENGES FACING HRM According to (Wärnich et.al, 2015), traditional HR approaches that were conceived in cultures emphasising

command and control are giving way to new approaches characterised by greater employee commitment,

cooperation, and communication, coupled with changed expectations and the incorporation of new technology.

As such some of the challenges facing HRM include the following:

1.4.3 Employee Productivity 1.4.4 Quality improvement 1.4.5 Downsizing, delayering and decruiting 1.4.6 The changing workforce 1.4.7 Global economy 1.4.8 Impact of government 1.4.9 Quality of working life

!ACTIVITY Research the current HRM challenges identified above, together with challenges HR managers will face in the future and discuss ways for HR managers to deal with and overcome these challenges.

? REVISION QUESTIONS 1. Outline the key human resource management functions in the organisation at which you are/were

employed.

2. Explain the different roles and responsibilities of the human resource department highlighting the main role

played by the HR department at the organisation in which you are employed.

3. Discuss the trends and challenges relevant to the growing importance of HRM.



CHAPTER 2 THE STRATEGIC AND OPERATIONAL ROLE OF

HRM IN AN ORGANISATION



ARNING OUTCOMES: After studying this chapter you should be able to: 1. Identify and trace the origins and context of human resource management 2. Describe the new role of HRM in an organisation 3. Describe the main focus areas of HRM


Textbooks:






• Ghebregiorgis, F. & Karsten, L. (2007) “Employee Reactions to Human Resource Management and

Performance in a Developing Country: Evidence from Eritrea.” Personnel Review. 36 (5), pp 722 – 738.

(available from Emerald).

• HRMID (2012) “HRM Spreads Word to the World: When Culture and Country Affect Company.” Human

Resource Management International Digest. 20 (3), pp 18 – 21. (available from Emerald).

• Karamchandani, A., Kubzansky, M. & Lalwani, N. (2011) “Is the Bottom of the Pyramid Really for You?”

Harvard Business Review. 89 (3), pp 107 – 111. (available from EBSCO).

• Mangaliso, D.T.H., Mzamo, P., Mangaliso, N.A. (2010) “Some Implications of the Inter-Cultural Approach

to International Human Resource Management: Ubuntu and Ummah.” Academy of Management Annual

Meeting Proceedings. pp 1 – 6. (available from EBSCO).

• Okpara, J.O. & Wynn, P. (2007) “Human Resource Management Practices in a Transition Economy:

Challenges & Prospects.” Management Research News. 31 (1), pp 57 – 76. (available from Emerald)

• Raghu Raman, S., Budhwar, P. & Balasubramanian, G. (2007) “People Management Issues in Indian

KPOs.” Employee Relations. 29 (6), pp 696 – 710.

• Raman, A. (2009) “The New Frontiers.” Harvard Business Review. 87 (7/8), pp 130 – 137. (available from

EBSCO).

• Reilly, P. (2012) “HR’s Future in a Global Setting.” Human Resource Management International Digest. 20

(3), pp 3 – 5. (available from Emerald).



2. INTRODUCTION Traditionally, the HRM department (also previously known as “Personnel” or “Employee Relations”) was

primarily an administrative expert and employee advocate that took care of employee problems, made sure

employees were paid correctly, administered employment contracts and avoided legal problems.

The HRM department ensured that employee-related issues did not interfere with the manufacturing or sales

of products or services. Human resource management was primarily reactive in that human resource issues

were a concern only if they directly affected the business. That still remains the case in many companies that

have yet to recognise the competitive value of human resource management, or among HR professionals who

lack the competencies and skills or understanding needed to anticipate problems and contribute to the

business strategy. However, there are other companies that believe HRM is important for business success

and have therefore expanded the role of HRM as a change agent and strategic partner (Noe et. al, 2014).

2.1 THE CONTEXT OF HRM

Figure 2.1: The Scientific Context of HRM (Source: Nel and Werner page 3)

As depicted in Figure 2.1, it is evident that HRM is a very broad field incorporating scientific theory and

practices from various disciplines (Nel and Werner, 2014):

Firstly, HRM originates from the study field Management, which is defined, when describing the management

discipline within the context of people, as the “process of coordinating and overseeing the work activities of

others so that their activities are completed efficiently and effectively”.



The second important discipline is Psychology, the science that seeks to measure, explain and sometimes

change the behaviour of humans and other animals.

Sociology, the third discipline, is the study of people in relation to their fellow human beings and is of great

significance to organisational functioning especially in groups and regarding cultural aspects.

The fourth discipline, Social Psychology, is an area within Psychology that blends concepts from Psychology

and Sociology and focuses on the influence of people on one another.

Political Science, the fifth discipline, is the study of the behaviour of individuals and groups within a political

environment.

Anthropology, the sixth discipline, is the science of humankind and the study of human behaviour as a whole.

Lastly, Organisation Behaviour refers to the behaviour of individuals and groups within an organisation as

well as the interaction between members of the organisation and their external environments.

As reflected in the diagram and discussed above, it is evident that HRM comprises many focus areas that

interdependently and holistically, enable individuals, groups (teams) and the organisation to perform and

excel. The HR department in addition to these focus areas must ensure legal compliance, amongst others in

terms of the Basic Conditions of Employment Act (No. 75 of 1997), Labour Relations Act (No. 66 of 1995) and

Employment Equity Act (No. 55 of 1998).

Over time, the field of HRM has become proactive in managing people in the long-term interest of the

business, where HRM is not the responsibility of only the HRM department.

2.2. THE NEW ROLE OF HRM Due to the rapid changes that have taken place within the organisation as well as in the role of the HR

professional, to be successful the HR professional have to, according to (Grobler et.al, 2014):

• Become involved with line managers in strategy formulation and implementation, resulting in the design of

HR strategies that will support the overall company strategy

• Become an expert in the way work is organised and executed

• Become involved in reducing costs through administrative efficiency, while at the same time maintaining

high quality



• Become a reliable representative for employees when putting their concerns to management

• Become an agent for continuous transformation, shaping processes and culture to help organisations

improve their capacity for change

Ulrich (1997) in his popular book Human Resource Champions, states that for HR professionals to be

successful, they will have to play at least four different roles;

• Strategic partner

• Administrative expert

• Employee champion

• Change agent

As Ulrich’s model has been successfully implemented by major corporations around the world (e.g. Hewlett-

Packard, General Electric, and Sears) it would be of significance to take a closer look at his model.

Future/strategic focus (short-long term) Processes Cell 1

Management of strategic human resources Deliverable/outcome Executing strategy Activity Aligning HR and business strategy: ‘Organisational diagnoses’ Role Strategic partner

Cell 3 Management of transformation and change Deliverable/outcome Creating a renewed organisation Activity Managing transformation and change: ‘Ensuring capacity for change’ Role Change agent

People

Cell 2 Management of strategic human resources Deliverable/outcome Executing strategy Activity Re-engineering organisation processes: ‘Shared services’ Role Administrative expert

Cell 4 Management of employee contribution Deliverable/outcome Increasing employee commitment and capability Activity Listening and responding to employees: ‘Providing resources to employees’ Role Employee champion

Day-to-day/operational focus Figure 2.2 HRM’s roles in building a competitive advantage (Source:Grobler page 5)

The Axes of Ulrich’s model in the Figure 2.2 represents two aspects:

• Focus (i.e. short-term and long-term)

• Activities (managing processes, HR tools and systems and managing people)

The HRM roles mentioned earlier are depicted in the four quadrants of the model. Each quadrant contains the

outcome of each role as well as the activities the HR professional is to perform.



Cell 1 The HR manager works to be a strategic partner by focusing on the alignment of HR strategies and practices

with the overall business strategy.

By fulfilling this role (strategic partner) HR professionals increase the capacity of the business to execute its

strategies.

Cell 2 This role (Administrative expert) requires HR professionals to design and deliver efficient HR processes, e.g.

staffing, training, appraisal, rewarding and promotion.

HR professionals must ensure that these organisational processes are designed and delivered efficiently. This

process is ongoing.

Cell 3 The third key role to be played by the HR professional (change agent) is management of transformation and

change. This entails making fundamental cultural changes within the organisation.

Cell 4 The employee-contribution role of HR professionals (Employee champion) encompasses their involvement in

the day-to-day problems, concerns, and needs of employees. For example, where intellectual capital becomes

a critical source of a company’s value, HR professionals should be active and aggressive in developing this

capital. (Grobler et.al.; 2014).

Thus, according to Grobler et.al (2014), by turning the four HRM roles into specific types of behaviour and

actions, a world-class HR organisation can be created.

Being an HR professional does not mean simply moving from operational to strategic work as the new

challenges demand; it means learning to master both operational and strategic processes and people by

fulfilling multiple roles.

2.3 HRM FOCUS AREAS HRM is a broad field and consists of many focus areas that interdependently and holistically enable

individuals, groups (teams) and the organisation to perform and excel. It shows that organisations and HRM

itself, do not exist in a vacuum, but are influenced by dynamic and interrelating environmental forces (Nel and

Werner; 2014).



The following are considered some of the main focus areas of HRM:

2.3.1 Employment and Onboarding Employment involves planning for the right skills and competencies, recruiting people who fit the job

requirements as well as organisational values and then appointing them. If the wrong people are employed

who do not buy into the values of the organisation, it is unlikely that they will demonstrate their optimal

potential. Onboarding is the process that starts from recruitment and employing a person until the person is

fully functioning and integrated with the organisational culture and represents the link between the promise of

new employee talent and the realisation of that talent into actual performance (Nel and Werner; 2014).

According to Noe et.al (2015) effective onboarding is related to many important outcomes for the employee

and the company including higher job satisfaction, organisational commitment, lower labour turnover, higher

performance, reduced stress and career effectiveness.

PRACTICAL APPLICATION – EXAMPLE IBM’s onboarding progamme, Succeeding @IBM, takes into account that many new employees don’t spend much of their time in the office – they work at home, on the road, and members of their work group are likely located around the world. But new employees still need to quickly learn to perform their jobs, feel comfortable, and develop a network of friends. The onboarding programme includes both face-to-face interactions and technology-based features that help employees prepare for their job as well as plan for their careers. It helps employees learn how their job relates to other IBM business units and locations and is customised to address the needs of employees in different types of jobs such as consultants, college graduates and managers. Following a classroom experience on the first day new employees work online to complete four different phases of onboarding. Discovering IBM covers IBM’s values, history and businesses. Share and Connect encourages new employees to collaborate with each other and experienced employees for support, career guidance and technical expertise. Grow My Career provides a roadmap for employees to use to identify different learning and career paths within IBM. Find Support connects new employees with mentors, career coaches, websites and other resources. New employees can also use IBM’s instant messaging and have access to an online employee directory that includes job descriptions, resumes, skills and languages spoken and photos ( Noe et.al, 2015).



2.3.2 Talent Management Onboarding is a prerequisite for talent management. Once an employee has come on board, ongoing talent

management is important (Nel and Werner; 2014).

Talent management refers to the systematic planned strategic effort by a company to use bundles of human

resource management practices including acquiring and assessing employees, learning and development,

performance management and compensation to attract, retain, develop and motivate highly skilled employees

and managers. This means recognising that all HR practices are inter-related, aligned with business needs

and help the organisation manage talent to meet business goals (Noe et.al 2015).

It is clear from the above that talent management may be viewed as the use on an integrated set of HRM

activities to ensure that an organisation attracts, retains, motivates and develops the talented people it needs

now and in the future.

In Figure 2.3 the elements of talent management and the interrelationships are shown.

Figure 2.3: The elements of talent management (Source: Grobler page 19 )

It is clear that proper planning is essential to ensure the availability of the right talent for the job at the right

time.

According to Grobler et.al (2014) organisations that excel in talent management follow eight best practices:

• Define talent management broadly

• Integrate the various elements of talent management into a comprehensive system

• Focus talent management on the most highly valued talent



• Get CEOs and senior executives committed to talent-management work

• Build competency models to create a shared understanding of the skills and types of behaviour the

organisation needs and values in employees

• Monitor talent needs within the organisation to identify potential gaps

• Excel at recruiting, identifying and developing talent, as well as at performance management and retention

• Regularly evaluate the results of the talent-management system.

For talent management initiatives to be effective, organisations need formal processes as depicted in Figure

2.3, with many people involved and with strong links between leadership and talent to translate into specific

organisational value-based behaviour. To tie all these activities together successfully, the leaders in HRM

should actively pursue a number of activities including, informing management and employees about why

talent management is important, how it works and what the benefits to the organisation are.

2.3.3 Self-managed work teams As the term ‘self-managed’ implies, these teams within the work environment are responsible for determining

what they want to do, how they want to do it and when they want to do it. Teams are empowered to use their

initiative in solving problems and managing themselves. The advantage of these teams is that they can

respond quickly to the needs of a particular situation, which is of great importance for companies finding

themselves in a turbulent environment. Team members participate in decisions regarding who to hire for their

teams, what equipment to purchase and what training is necessary to operate the equipment. The HR

professional would then play the role of coach or counsellor or advisor to the team.

For example, when hiring or selecting people for the company, the team members play an important role in

deciding whether the applicants will be good team members or not (Grobler et.al, 2014).

? THINK POINT

Consider the evolvement of self-managed work teams into virtual teams and the reasons why virtual teams have become so important.

2.3.4 Alternative workplace The alternative workplace is an effort by HR management to transform the workplace by moving the work to

the worker instead of the worker to the work. It is a combination of non-traditional work-practices, settings and

locations that is beginning to supplement traditional offices (Grobler et.al 2014).

Alternative work arrangements include independent contractors, on-call workers, temporary workers and

contract company workers (Noe et.al, 2015).



Virtual work is important because of its increasing prevalence and also because virtual organisations and

virtual workers may be key factors on the ‘new economy’. Variations on the alternative workplace include the

following:

• Placing workers on different shifts or travel schedules. This enables them to share the same desk and

office space.

• Replacing traditional offices with open-plan space

• Implementing the concept of ‘hotelling’. ‘Hotel’ work spaces are furnished, equipped and supported with

typical office services. These spaces can then be reserved by the hour, day or week instead of being

permanently assigned

• Creating satellite offices. Such offices are the result of breaking up large, centralised facilities into a

network of smaller workplaces that can be located close to customers or to employees’ homes

• Introducing telecommuting or virtual offices. This is one of the most recognised forms of alternative

workplace. Telecommuting – performing work electronically wherever the worker chooses, e.g. from home

– generally supplements the traditional workplace rather than replacing it (Grobler et.al, 2014).

Alternative work arrangements can benefit both individuals and employers. More and more individuals don’t

want to be attached to any one company. They want the flexibility to work when and where they choose. They

may want to work fewer hours to effectively balance work and family responsibilities (Noe et.al, 2015).

2.3.5 E-HRM and Knowledge Management HR is increasingly playing a strategic role as business partner in the organisation and as such, adds value

through making high impact decisions. HR stays the custodian of HRM functions, policies, systems and

processes, but it also acknowledges the role others play in the collaborative effort of attaining strategic goals.

It provides HR executives, line managers and employees with HR information and knowledge that enable

them to make sound decisions. The devolution of the HR function and dissemination of HR knowledge

throughout the organisation with complete online support for improved decision-making is labelled E-HRM (Nel

et. al., 2014).

E-HRM includes a wide range of functions, ranging from something as simple as making a company’s HR

policies and procedures available through its intranet to managing the development and deployment of the

company’s most strategic skills (Grobler et.al 2014).

Confusion may arise regarding the distinction between E-HRM and HRIS and therefore clarity must be

provided.



A Human Resource Information System (HRIS) refers to an information technology system, using intranet or

web-based systems, or even mobile device technology, to store and/or distribute HR information to designated

users at multiple access points. An HRIS can provide an organisation with a competitive advantage by

increasing productivity, reducing costs, and ensuring product quality. If the knowledge it produces is useful,

accurate and delivered timeously, then it allows the HR department to spend more time on strategic HR

issues.

Therefore an HRIS provides information, while E-HRM implies using this information to analyse various

situations, trends and changes and to make decisions that will support the attainment of the organisational

mission.

The HRIS forms part of the organisation’s larger Management Information System (MIS) which includes

accounting, production, marketing and other functions.

HR metrics on the other hand refers to measurements used to quantify the cost and impact of HR processes,

systems and initiatives such as employment, wellness and retention. They enable the organisation to track

year-to-year trends and changes in critical HR variables. HR metrics reflect the contribution that the HR

department makes to the overall attainment of organisational goals (Nel and Werner; 2014).

Electronic human resource management, or E-HRM reflects a philosophy for the delivery of HR; it uses

information technology, particularly the Web, as the central component of delivering efficient and effective HR

services.

Organisations embracing E-HRM do not simply use technology to support HR, rather they see technology as

an enabler for things to be done differently in the HR function by changing the manner in which information

flows and how social interaction and communication take place (Wärnich et.al, 2015).


1. Consider the organisation at which you are employed. Would you say that this organisation’s HR professionals fulfil the role of strategic partner or are they able to fulfil multiple roles in the organisation?

2. Identify the main focus area/s of HRM in your organisation and discuss the approach taken by the organisation to deal with the challenges faced in these focus areas.

3. Distinguish between E-HRM and HRIS in an organisation also highlighting the integration between these two systems.



CHAPTER 3 HUMAN RESOURCE STRATEGY AND BUSINESS

STRATEGY



LEARNING OUTCOMES: After studying this chapter you should be able to: 1. Understand the strategic-partner role of HR professionals 2. Explain the processes of Strategic Management 3. Discuss what strategic is human resource management 4. Discuss the importance of integrating an organisation’s human resource strategy with the overall

business strategy 5. Discuss the advantages of an integrated approach to Strategic human resource management 6. Discuss and apply the strategic management phases of strategy formulation, strategy

implementation, and strategy evaluation and control




Textbooks:





Journal Articles and Reports :

• Bourne, A. and Haddon, D. (2010) "An evidence-based approach to developing HR strategy:

transformation in Royal Mail". Strategic HR Review, Vol. 9, No.1, pp.10 – 16.

• Jana, F. and Jan, R. (2015) “Get strategic Human resource Management Really Strategic: Strategic HRM

In Practice.” International Journal of Management Cases. 17 (4) pp148-155 (available from EBSCO).

• Kramer, R. (2014) “Beyond Strategic human resource management:is sustainable human resource

management the next approach?” International Journal of Human Resource Management. 25(8) pp1069-

1089 (available from EBSCO).

• Marler, J.H. (2012) “Strategic Human Resource Management in Context: A Historical and Global

Perspective.” Academy of Management Perspectives. 26(2) pp6-11 (available from EBSCO).

• Othman, A.E.A (2009) “Strategic Integration of Human Resource Management Practices: Perspectives of

Two Major Japanese Electrical and Electronics Companies in Malaysia.” Cross Cultural Management: An

International Journal. 16 (2), pp 197 – 214. (available from Emerald).

• Ulrich, D., Brockbank, W. & Johnson, D. (2009) “The Role of Strategy Architect in the Strategic HR

Organisation.” People & Strategy. 32 (1), pp 24 – 31. (available from EBSCO)



3. INTRODUCTION

Organisations are increasingly recognising that the human resource represents a major source of competitive

advantage. An organisation with a high quality workforce will be in a better position to compete in terms of

product and service quality, technological innovation and market responsiveness. The competency levels of an

organisation’s human resource can be a determining factor for meeting strategic objectives. Competitive

advantage of the human resource is sustained by strategic HRM that provides the link between business

strategies and improved business performance. This is achieved when HR translates business strategy into

specific business priorities, such as changing the culture, structure or introducing self-directed teams.

HR is now becoming more accountable for adding value to the organisation’s output and requires that HR

managers become strategic partners, not just in in operationalising the strategy, but also in organisational

strategy formulation (Nel and Werner, 2014).

3.1 STRATEGIC MANAGEMENT The goal of strategic management in an organisation is to deploy and allocate resources in such a way that

gives it a competitive advantage. Due to the major competitive challenges organisations face today,

organisations are required to take a proactive, strategic approach in the marketplace and to be maximally

effective, the HRM function must be integrally involved in the organisation’s strategic management process

(Noe et.al, 2015).

Strategic management is a process, to address the competitive challenges an organisation faces and can be

referred to as managing the “pattern or plan that integrates an organisation’s major goals, policies and action

sequences into a cohesive whole” (Noe et.al, 2015).

In other words, strategic management is a process for analysing a company’s competitive situation,

developing the company’s strategic goals, and devising a plan of action and allocation of resources (human,

organisational and physical) that will increase the likelihood of achieving those goals. This is the kind of

strategic approach that should be emphasised in human resource management (Noe et.al, 2015).

3.2 THE STRATEGIC MANAGEMENT PROCESS According to (Noe et.al, 2015) the strategic management process has two distinct yet interdependent phases:

Strategy formulation and strategy implementation.

During strategy formulation, the strategic planning groups decide on a strategic direction by defining the

company’s mission and goals, its external opportunities and threats, and its internal strengths and



weaknesses. They then generate various strategic alternatives and compare those alternatives’ ability to

achieve the company’s mission and goals.

During strategy implementation, the organisation follows through on the chosen strategy.

The basic premise behind strategy implementation is that “an organisation has a variety of structural forms and

organisational processes to choose from when implementing a given strategy” and these choices make an

economic difference.

3.3 STRATEGIC HUMAN RESOURCE MANAGEMENT (SHRM) Strategic HR management (SHRM) is a process or an approach that addresses the competitive challenges an

organisation faces in terms of its human resource management processes and activities (Nel and Werner,

2014). Noe et. al (2015) define strategic human resource management as a pattern of planned human

resource deployments and activities intended to enable an organisation to achieve its goals.

Strategic HR management entails long-term, top-level management decisions and actions regarding the entire

employment relationship which in turn are in alignment with the overall general strategic management of the

organisation. It entails synchronising and integrating the organisation’s strategic business needs and plans

with all those aspects stemming from and relating to the management of its employees.

HR managers are under increasing pressure to become strategic business partners in assisting the

organisation to better respond to the challenges of downsizing, restructuring and global competition by

providing value-added contributions to the success of the business.

For example, if HR requirements are compiled for a strategy of innovation, it will be vastly different from a

strategy requiring a relocation or start-up section of the business to compete in a neighbouring country.

Innovation will require that the competition must be outsmarted beaten and improved products or services

must be provided. If a South African based manufacturing organisation wants to expand into Africa (strategy of

competition) then the HR department would have to ensure that it invests time and resources in understanding

the African market and dealing with the challenges faced with international HR management (Nel and Werner,

2014).

3.4 THE LINK BETWEEN STRATEGIC PLANNING AND HR MANAGEMENT

Figure (3.1 ) indicates how the strategy should be aligned with the HRM function and represents the vertical

alignment between organisational strategy and HRM strategy and directs the HR activities towards achieving

strategic objectives (derived from the vision).

It is the set of decisions and activities to be formulated for implementation that will ensure competitive

advantage in the future. Vision and mission are important, but not the only two factors to ensure a successful



organisation. It needs to be translated into operational plans that will guide the activities of the function, in this

case HRM as depicted in Figure (3.1).

Figure 3.1 Strategic Alignment (Nel and Werner, 2014).

It is critical that SHRM is aligned with the organisational strategic plan in order to improve organisational

competitiveness. Earlier views of managers to exclude employees’ input have changed over time as they

realise the importance of employee involvement and inputs in ensuring they understand the linkage between

strategy and operations (Nel and Werner, 2014).

An organisation’s strategic management decision-making process usually takes place at its top levels, with a

strategic planning group consisting of the chief executive officer (CEO), the chief financial officer (CFO), the

president and various vice presidents. Each component of the process involves people-related business

issues. The HRM, function therefore needs to be involved in each of these components Noe et. al (2015).

According to Noe et. al (2015), four levels of integration seem to exist between the HRM function and the

strategic management function:

Talent Management

Compensation and rewards

Organisational development and

renewal

Employee Relations

HUMAN RESOURCE MANAGEMENT PRACTICES

ORGANISATIONAL STRATEGY Vision

Mission Core values and reason for existence

Align

ment



• Administrative linkage: Is the lowest level of integration where the HRM’s function focuses on day-to-day activities and engages in

administrative work unrelated to the company’s core business needs and therefore completely divorced from

any component of the strategic management process in both strategy formulation and strategy

implementation. The HRM executive has no time or opportunity to take a strategic outlook toward HRM issues.

The company’s strategic planning function exists without any input from the HRM department.

• One-way linkage: The firm’s strategic business planning function develops the strategic plan and then informs the HRM function

of the plan.

Although this one-way linkage does recognise the importance of human resources in implementing the

strategic plan, it precludes the company from considering human resource issues while formulating the

strategic plan. This level of integration often leads to strategic plans that the company cannot successfully

implement.

• Two-way linkage: This integration occurs in three sequential steps

First, the strategic planning team informs the HRM function of the various strategies the company is

considering.

Then the HRM executives analyse the human resource implications of the various strategies, presenting the

results of this analysis to the strategic planning team.

Finally, after the strategic decision has been made, the strategic plan is passed on to the HRM executive who

develops programmes to implement it.

• Integrative linkage Is multifaceted and dynamic based on continuing rather than sequential interaction.

The HRM executive is an integral member of the senior management team.

Companies with integrative linkage have their HRM functions built right into the strategy formulation and

implementation processes.

3.6 ADVANTAGES OF AN INTEGRATED APPROACH TO SHRM The advantages of adopting an integrated approach to SHRM according to Nel and Werner (2014), include the

following:

• Improved understanding of the implications of strategic organisational planning for HR

• Proactive recruitment of the required and experienced HR

• Improved HR development activities



• Improved analysis and control of costs related to HR by providing more objective criteria for payroll, labour

market, training and other expenses.

According to Nel and Werner (2014), the process of ensuring alignment between the organisation’s strategy

and HR strategy is referred to as ‘fit’ or alignment. There are two types of alignment:

• Vertical alignment – where all HR strategies, resources, and functions are in line with that of the

organisation

• Horizontal alignment – where all functions and activities within HR are aligned with each other.

Therefore it is believed that strategic management and planning should include strategic HR planning from the

outset because of the benefits it hold for an organisation.

3.7 STRATEGY FORMULATION The process of formulating the HR management strategy involves deciding on an appropriate strategic

direction by defining a company’s mission and goals, its external opportunities and threats and its internal

weaknesses and strengths for the management of HR within the context of the organisation’s environment.

The strategic choice must be made preferably within the context of environmental constraints (Nel and

Werner, 2014).

The strategic choice is the organisation’s strategy. It describes the ways the organisation will attempt to fulfil its

mission and achieve its long-term goals.

It is imperative that all people-related business issues be considered during strategy formulation. These issues

are identified in the HRM function. Mechanisms or structures for integrating the HRM function into strategy

formulation may help the strategic planning team make the most effective strategic choice.

Once that strategic choice is determined, HRM must take an active role in implementing it (Noe et. al (2015).

3.8 STRATEGY IMPLEMENTATION After an organisation has chosen its strategy, it has to execute that strategy.

The strategy a company pursues dictates certain HR needs. For a company to have a good strategy

foundation, certain tasks must be accomplished in pursuit of the company’s goals, individuals must possess

certain skills to perform those tasks and these individuals must be motivated to perform their skills effectively.

The basic premise behind strategy implementation is that an organisation has a variety of structural forms and

organisational processes to choose from when implementing a given strategy



Five important variables determine success in strategy implementation:

• Organisational structure

• Task design

• The selection, training and development of people

• Reward systems

• Types of information and information systems

First, for strategy to be successfully implemented, the tasks must be designed and grouped into jobs in a way

that is efficient and effective.

Second, the HRM function must ensure that the organisation is staffed with people who have the necessary

knowledge, skill and ability to perform their part in implementing the strategy. This goal is achieved primarily

through recruitment, selection, and placement, training, development and career management.

The HRM function must develop performance management and reward systems that lead employees to work

for and support the strategic plan.

Therefore the HRM function becomes one of:

• Ensuring that the company has the proper number of employees with the levels and types of skills

required by the strategic plan.

• Developing “control” systems that ensure that those employees are acting in ways that promote the

achievement of the goals specified in the strategic plan.

In essence this is what has been referred to as the “vertical alignment” of HR with strategy. This means that

HR practices and processes are aimed at addressing the strategic needs of the business.

It is through administering HRM practices such as job analysis/design, recruitment, selection systems, training

and development programmes, performance management systems, reward systems and labour relations

programmes that the HRM function is able to implement strategy (Noe et. al (2015).

3.9 STRATEGY EVALUATION AND CONTROL

An effective and successful organisation will constantly monitor the effectiveness of both the strategy and the

implementation processes. The monitoring makes it possible for the company to identify problem areas and

either revise existing structures and strategies or devise new ones.

In this process emergent strategies appear and the critical nature of HRM in securing a competitive advantage

is recognised (Nel and Werner, 2014).



CONCLUSION Thus in strategic HRM, the HRM function is involved in both strategy formulation and strategy implementation.

The HRM executive gives strategic planners information about the company’s human resource capabilities

and these capabilities are usually a direct function of the HRM practices. This information about human

resource capabilities helps top managers choose the best strategy because they can consider how well each

strategic alternative would be implemented. Once the strategic choice has been determined, the role of HRM

changes to the development and alignment of HRM practices that will give the company employees having

the necessary skills to implement the strategy. In addition, HRM practices must be designed to elicit actions

from employees in the company (Noe et. al (2015).


Read the following case study extracted from the prescribed text (Noe et al, 2015) and answer the questions that follow:

Strategy and HRM at Delta Airlines In 1994 top executives at Delta Air Lines faced a crucial strategic decision. Delta, which had established an

unrivalled reputation within the industry for having highly committed employees who delivered the highest

quality customer service, had lost more than $10 per share for two straight years. A large portion of its

financial trouble was due to the $491 million acquisition of Pan Am in 1991, which was followed by the Gulf

War (driving up fuel costs) and the early 1990s recession (causing people to fly less). Its cost per available

seat mile (the cost to fly one passenger one mile) was 9.26 cents, among the highest in the industry. In

addition, it was threatened by new discount competitors with significantly lower costs – in particular, Valujet,

which flew out of Delta’s Atlanta hub. How could Delta survive and thrive in such an environment? Determining

the strategy for doing so was the top executives’ challenge.

Chairman and chief executive officer Ron Allen embarked upon the “Leadership 7.5” strategy, whose goal was

to reduce the cost per available seat mile to 7.5 cents, comparable with Southwest Airlines. Implementing this

strategy required a significant downsizing over the following three years, trimming 11458 people from its

69 555-employee workforce (the latter number representing an 8% reduction from two years earlier). Many

experienced customer service representatives were laid off and replaced with lower paid, inexperienced part-

time workers. Cleaning service of planes as well as baggage handling, were outsourced, resulting in lay-offs of

long-term Delta employees. The numbers of maintenance workers and flight attendants were reduced

substantially.

The results of the strategy were mixed as financial performance improved but operational performance

plummeted. Since it began cost-cutting its stock price more than doubled in just over two years and its debt

was upgraded. On the other hand, customer complaints about dirty airplanes rose from 219 in 1993 to 358 in



1994 and 634 in 1995. On-time performance was so bad that passengers joked that Delta stands for “Doesn’t

Ever Leave The Airport”. Delta slipped from fourth to seventh among the top carriers in baggage handling.

Employee morale hit an all-time low, and unions were beginning to make headway toward organising some of

Delta’s employee groups. In 1996 CEO Allen was quoted as saying , “This has tested our people. There have

been some morale problems. But so be it. You go back to the question of survival, and it makes the decision

very easy.”

Shortly after, employees began donning cynical, “so be it” buttons. Delta’s board saw union organisers stirring

blue-collar discontent, employee morale destroyed, the customer service reputation in near shambles, and

senior managers exiting the company in droves. Less than one year later, Allen was fired despite Delta’s

financial turnaround. His firing was “not because the company was going broke but because its spirit was

broken”.

Delta’s Leadership 7.5 strategy destroyed the firm’s core competence of a highly experienced, highly skilled,

and highly committed workforce that delivered the highest quality customer service in the industry.

HRM might have affected the strategy by pointing out the negative impact this strategy would have on the firm.

Given the strategy and competitive environment, Delta might have sought to implement the cost cutting

differently to reduce the cost structure but preserve its source of differentiation.

The present state of Delta provides further support to these conclusions. With the family atmosphere dissolved

and the bond between management and rank-and-file employees broken, employees have begun to seek

other ways to gain voice and security. By Fall 2001 Delta had two union organising drives under way with both

the flight attendants and the mechanics. In addition, labour costs have been driven up as a result of the union

activity. The pilots signed a lucrative five-year contract that will place them at the highest pay in the industry. In

an effort to head of the organising drive, the mechanics were recently given raises to similarly put them at the

industry top. Now the flight attendants are seeking industry-leading pay regardless of, but certainly

encouraged by, the union drive.

Question 1 The Delta Airline story provides a perfect example of the perils that can await organisations that fail to

adequately address human resource issues.

Discuss how Delta Airlines could have adequately addressed their human resource issues through the

integration of HR in the formulation and implementation of strategy.

Question 2 Suppose you were now appointed the HR director of Delta Air Lines, what would your major priorities be

focussed on in order to attempt to restore equilibrium in the organisation?



CHAPTER 4 TALENT PLANNING AND WORKFORCE PLANNING



LEARNING OUTCOMES: After studying this chapter you should be able to: 1. Provide an overview of workforce planning 2. Understand what talent planning is 3. Identify workforce planning focus areas 4. Discuss the alignment of human resource planning with an organisation’s strategy (SHRP) 5. Assist an HR practitioner to carry out the steps in the workforce planning process 6. Develop and formulate a workforce strategy for implementation


Textbooks:





Journal Articles & Reports

• Gubman, E. (2004) “HR Strategy and Planning: From Birth to Business Results.” Human Resource

Planning. 27(1), pp13-23 (available from Ebsco).

• Macleer, B. and Shannon, J. (2003) “Does HR Planning Improve Business Perofrmance.” Industrial

Management 45(1) (available from Ebsco).

• Bielski, L. (2007) “Getting to “yes” with the right candidates.” ABA Banking Journal 99 (3) pp 30-51

(available form Ebsco).

• Katz, L.M. (2015) “Cool and Competent) HR Magazine. 60(2) pp 56-60 (available form ebsco).

• Faragher, J. (2015) “How to find talent on a budget…without cutting corners.” People Management. Pp 44-

47(available form ebsco).



4. INTRODUCTION Human resource managers are at the forefront of the worldwide war for competitive advantage. Organisations

need to find the best set of workers for meeting their strategic objectives, attract those workers to their

companies, and then get them to stay long enough to obtain some return on their investment.

Organisations have to strive to make sure that the decisions they make with respect to who gets accepted or

rejected for jobs promote the best interests of the company and are fair to all parties involved. Despite the

expected severe increase in population, employers are seeking talent in the workforce (Nel and Werner,

2014).

4.1 OVERVIEW OF WORKFORCE PLANNING

Workforce planning (HR planning) is an integrated and holistic resourcing planning process that ensures that

the right people are in the right roles to meet the current organisational profit plan (Nel and Werner, 2014).

Wärnich et.al (2015), define HR planning as “the process of anticipating and providing for the movement of

people into, within and out of the organisation.”

Within the next decade organisations can expect to experience the following:

• An ageing workforce which will create an increasing need for talented employees with the skills and

competencies needed

• A more diverse workforce

• Increased competition for highly skilled employees

• Technology playing an ever-increasing role in improving efficiency and productivity

The attainment of HR is fast becoming a vital ingredient in strategic organisational success. It is imperative

that companies develop processes, policies, procedures, and strategies to compete aggressively.

Figure 4.1 shows that there is a clear link between HR strategies and organisational strategies. This

integrative model presented below shows the flow of activities in executing workforce planning effectively by

means of integrating recruitment of labour with the objectives of the organisation (Nel and Werner, 2014).



Figure 4.1: Strategic HR Planning and Organisational Strategies

4.2 TALENT PLANNING

Talent management planning is about attracting more of the right people. It allows employers to understand

the career aspirations of the people they might need to hire.

The following according to (Nel and Werner, 2014) are important considerations in Talent Planning:

4.2.1 Talent Inventory

The term talent, according to Nel and Werner (2014), refers to the attraction and selection of high potential

employees. Talent management refers to the strategic management of the flow of talent through the

organisation; tracking the skills and abilities of your current employees can focus recruiting efforts.

Skills inventories provide an account of the abilities, skills, training and experience of current employees and

can help identify skills gaps. These inventories can help guide hiring decisions that will ensure employers have

the necessary employees to meet the current and future needs of the organisation.

4.2.2 Succession Planning

Succession planning refers to the identification and development of potential successors for key positions in

an organisation, through a systematic evaluation process and training. Creating and maintaining skills

inventories allows employers to develop succession plans based on current employee skills sets. It also allows



them to identify key employees for future openings critical to the company’s leadership and business success.

A skills inventory facilitates better HR practices and helps align HR with the strategic needs of the business.

4.2.3 Impact of good workforce planning Effective workforce planning influences the state of the business in the following ways:

• It eliminates surprise

• It smoothes out business cycles

• It identifies problems early

• It prevents problems

• It takes advantage of opportunities

• It improves the image of the HR department

4.3 WORKFORCE PLANNING FOCUS AREAS

4.3.1 The talent demand and supply forecast

Talent forecasting is a process for predicting changes in the demand for and the supply of talent.

Forecasts are broken down into:

• Estimated increases or decreases in company growth, output and revenue

• Estimated changes in talent needs that result from organisational growth

• Projections of future vacancies (Nel and Werner, 2014).

4.3.2 Talent Projection and action plans It is important to plot a time series analysis projection using past information about the number of people

employed by the organisation over time on a graph, so that HR trends and requirements can be forecast into

the future. This technique is known as the trend projection.

Talent action plans outline which specific actions all managers have to take in terms of talent management.

These plans aim to attract, retain, redeploy and develop the talent a company needs in order to meet the

forecasted quantity and quality of employees. (Nel and Werner, 2014).

4.3.3 The Integration Plan For a company to meet its forecasted staffing needs, action plans must be fully implemented. They must be

integrated into every aspect of workforce management, including communication and the identification of

potential supporters and resisters (Nel and Werner, 2014).



4.4 STRATEGIC HUMAN RESOURCE PLANNING (SHRP)

The link between HR planning and strategic organisational planning is vital if HR programmes and systems

are to be attuned to the changing needs of the company under new competitive conditions known as ‘strategic

change’.

Linking HR Planning with the company planning process will facilitate the organisation’s ability to successfully

pursue a given number of strategic objectives and initiatives and as a result create a competitive advantage.

When strategic and HR planning are fully integrated, personnel to be retrenched or operations that may be

discontinued can be phased out gradually. SHRP can also assist with the selection of strategic alternatives,

rather than dealing with them only after the alternatives have been accepted (Wärnich et.al 2015).

? THINK POINT

Consider the organisation at which you are/were employed or an organisation that you are familiar with. Would you say the SHRP is a separate process or is it connected to the strategic plan of the organisation

4.5 Steps in the SHRP Process

According to Wärnich et.al (2015) the SHRP may be split into the following phases:

4.5.1 Establish the mission, vision and values for the organisation

This involves the establishment of the purpose of the organisation and why the organisation exists (the

mission) and identifies where the organisation is headed (vision) and the main principles and belief system

(values).

Organisations must analyse the situation by monitoring and assessing the company mission and core

business, its strategic plans and parameters, its concepts, structure and culture and HR-related challenges.

4.5.2 Conduct an environment analysis

Environmental scanning is conducted to gather information about trends and anticipated developments in the

external and internal environment and their relevance for HR strategy. The following are taken into account;

economic factors, legislative matters, changes in technology and trends in the market and labour market.



4.5.3 Internal analysis

Organisations need to look at the capabilities of the employees, the composition of their workforce and the

corporate culture which will provide information on the current situation allowing organisations to determine

what they need to change and improve, and what they are doing well to continue doing well.

4.5.4 Forecasting demand

This analysis entails the determination of the total manpower requirements of the company.

In other words, according to Nel and Werner (2014), forecasting labour demand means estimating the number

of workers the organisation will need in the future.

Typically, demand forecasts are developed around specific job categories or skill areas relevant to the

organisations current and future state. Once job categories or skills are identified, the planner needs to seek

information that will help predict whether the need for people with those skills or in that job category will

increase or decrease in the future (Noe et al, 2015).

It is important to recognise that forecasting involves approximations, not absolutes or certainties. At the most

sophisticated level an organisation might have statistical models that predict labour demand for the next year

given relatively objective statistics on leading indicators from the previous year (Noe et al, 2015).

Demand forecast frequently involve analysing past trends, productivity levels and managerial estimates and

linking company plans to productivity levels and projecting future needs Wärnich et.al (2015).

4.5.5 Forecasting Supply

Once a company has projected labour demand, it needs to get an indicator of the company’s labour supply.

This calls for a detailed analysis of how many people are currently in various job categories within the

company (Noe et al, 2015).

The supply component consists of two parts: internal and external supply.

Internal supply forecasts require that the company has maintained a history of employee characteristics such

as job classifications, retirements, promotions, attritions and age profiles. The database must contain skills

inventory information and information about employees’ educational background and qualifications.

The external supply side will be derived from an assessment of demographics, government policies,

unemployment rates and labour mobility (Wärnich et.al, 2015).

The aim is to balance the supply and demand to ensure that the organisation’s goals are reached as a result

of HR plans that are aligned to these goals.

Therefore, once forecasts for labour demand and supply are known, the planner can compare the figures to

ascertain whether there will be a labour shortage or labour surplus for the respective job categories.



4.5.6 Developing, formulating and implementing the workforce strategy

The results of the labour demand forecast and labour supply estimation determine the actions that must be

planned. Three scenarios and the responses organisations can make to implement the plans are presented:

Table 4.1 Labour demand exceeds labour supply Response:

• Training or retraining • Succession planning • Promotion from within • Recruitment from outside • Subcontracting • Use of part-timers or temporary workers • Use of overtime

Labour supply exceeds labour demand Response:

• Pay cuts • Reduced hours • Work sharing • Voluntary early retirements • Inducements to quit • Layoffs

Labour demand equals labour supply Response:

• Replacement of quits from inside or outside

• Internal transfers and redeployment

Source: (Nel and Werner, 2014).

The programmes developed in the strategic-choice stage of the process are put into practice in the

programme-implementation stage.

A critical aspect of programme implementation is to make sure that some individual is held accountable for

achieving the stated goals and has the necessary authority and resources to accomplish this goal.

It is also important to have regular progress reports on the implementation to be sure that all programmes are

in place be specified times and that the early returns from these programmes are in line with projections.

The final step in the planning process is to evaluate the results (Noe et al, 2015).



4.5.7 Programme Evaluation and Control of the workforce planning system

Exercising control and carrying out evaluation of workforce planning systems guide HR activities by identifying

deviations from the plan and their causes. Quantitative measures are used more frequently in established

planning systems, where key comparisons might include the following:

• Actual staffing levels against forecast staffing requirements

• Actual levels of labour productivity against anticipated levels of productivity

• Actual personnel floe rates against desired rates

• Action programmes implemented against action programmes planned

• Actual results of action programmes implemented against expected results

• Labour and action programme costs against budgets

• Ratios of action programme benefits to action programme costs.

In newly instituted planning systems, evaluation is more likely to be qualitative, because supply-and-demand

forecasts are more often based on ‘hunches’ and subjective opinions (Nel and Werner, 2014).

REVISION QUESTIONS Consider the organisation that you are employed at or an organisation that you are familiar with and conduct the following exercise ensuring proper strategic HR planning in that organisation:

• Identify the company’s mission, goals and objectives.

• Link the HR planning process to the mission, goals and objectives.

• Assess the present status of HR within the company by analysing the work being performed at present and the workforce doing the work at the moment (internal assessment).

• Scan the environment to assess how the work will probably change over time and how the workforce will also change (external assessment).

• Compare the present work being done to the expected future work required as well as the present workforce to the desired workforce in the future.

• Identify gaps/surpluses (i.e. compare internal supply/external supply to future demand).

• Consider long-term HR strategies to address the gaps and surpluses.

• Implement the HR strategies that are in line with the organisational strategies.

• Evaluate the process regularly and implement changes where needed.



CHAPTER 5 RECRUITMENT AND SELECTION



LEARNING OUTCOMES: After studying this chapter you should be able to: 1. Understand and apply the recruitment process in an organisation 2. Identify the various recruitment sources and discuss the advantages and disadvantages of each 3. Identify, compile and apply various recruitment policies an organisation may adopt 4. Analyse current trends in recruitment 5. Discuss and effectively apply the steps in the selection process within an organisation




Textbooks:





Journal Articles and Reports :

• Absar, M.M.N. (2012) “Recruitment & Selection Practices in Manufacturing Firms in Bangladesh.” Indian

Journal of Industrial Relations. January, 47 (3), pp 436 – 449. (available from EBSCO)

• Darrag, M., Mohamed, A., Aziz, H.A. (2010) “Investigating Recruitment Practices and Problems of Multi-

National Companies (MNCs) Operating in Egypt.” Education, Business & Society: Contemporary Middle

Eastern Issues. Pp 99 – 116.

• El-Kot, G. & Leat, M. (2008) “A Survey of Recruitment and Selection Practices in Egypt.” Education,

Business & Society: Contemporary Middle Eastern Issues. 1 (3), pp 200 – 212.

• Fernandez-Araoz, C., Groysberg,B. & Nohria, N. (2009) “The Definitive Guide to Good Recruiting in Good

Times and Bad.” Harvard Business Review. May, 87 (5), pp 74 – 84. (available from EBSCO).



5. INTRODUCTION As discussed in the previous chapter, it is difficult to anticipate exactly how many (if any) new employees will

have to be hired in a given year in a given job category. The role of human resource recruitment is to build a

supply of potential new hires that the organisation can draw on if the need arises.

Therefore, the primary purpose of human resource recruitment is identifying and attracting potential

employees.

It thus creates a buffer between planning and actual selection of new employees.

The goal of recruiting is not simply to generate large numbers of applicants. If the process generates a sea of

unqualified applicants, the organisation will incur great expense during selection, but few vacancies will

actually be filled (Noe et al, 2015).

Whereas recruitment encourages individuals to seek employment, the purpose of the selection process is to

identify and employ the best-qualified individuals for specific positions Wärnich et.al (2015).

The key role of recruitment and selection at its simplest level can be seen below:

External

labour market

Recruitment

activities

Organisation’s

need for

additional labour

Selection

Activities

Source: Wärnich et.al (2015)

The first part of this chapter examines the recruitment process whilst the second part deals with the selection

process.



5.1 THE RECRUITMENT PROCESS A number of factors influence the recruitment process, be it internal or external.

Table 5.1 Factors influencing recruitment

Internal Factors (internal environment of the organisation)

External factors (external environment of the organisation)

Organisational policy:

Dictates the parameters of the recruitment effort

Government and trade union restrictions:

LRA (No. 66 of 1995) and EEA (No. 55 of 1998)

govern the way in which organisations employ new

staff. Trade union representatives participate in

developing recruitment policies in many organisations

Organisational culture:

Internal culture frames the response of the

organisation to the external environment.

Labour market:

HR must be familiar with trends in the labour market

Pay and working conditions:

Influence the applicant and fundamental in attracting

candidates with suitable credentials

Image of the company:

An organisation with a positive image that practices

equality, fairness and supportive work environments

attracts good employees in the labour market.

Source: (Nel and Werner, 2014).

5.1.1 Recruitment Sources Once management has determined an organisation’s staffing requirements, the recruitment process begins.

The first decision made is whether a particular job opening should be filled by someone already employed

(internal – transfer or promotion) or by an applicant from outside (external). Organisations usually recruit both

internally and externally. They tend to start with recruitment from within the company, followed by external

recruitment, or both processes are run at the same time. In each case the advantages of recruiting outside the

organisation must be weighed against the advantage of recruiting inside the organisation.



Table 5.2 INTERNAL RECRUITMENT

Advantages Disadvantages

• Increases the morale of current employees • Unhealthy competition amongst existing employees

• Knowledge of the person and employee records

• Inbreeding resulting in no new ideas developing

• Chain of effect of promotion is possible • Morale problem for those not promoted

• Need to hire only at entry level • Strong management development programme is needed

• Usually faster and less expensive

• Employee is productive sooner

• Little or no orientation is needed

EXTERNAL RECRUITMENT Advantages Disadvantages

• Applicant pool is bigger • Destroys incentive of current employees to strive for promotion

• New ideas and contacts are brought into the organisation

• The individual’s ability to fit in with the rest of the organisation is unknown

• Reduces internal fighting • Increased adjustment problems

• Greater diversity • Takes longer for individual to become productive

• Comprehensive orientation is required

Source: Wärnich et.al (2015)

5.1.1.1 Internal recruitment sources

The most prominent internal recruitment sources according to Nel and Werner (2014) are:

• Existing employees:

Internal job postings allow existing employees to apply for more desirable jobs and include traditional

bulletin boards, computer e-mail based systems, telephone voicemail-based systems and the company’s

intranet.

• Referrals from current employees:

Referrals are people who are prompted to apply by someone within the organisation



• Former employees:

The employer already has experience with these people and they are easily recruited and become

productive quickly.

5.1.1.2 External Recruitment Sources

This occurs when employers use a source outside the organisation and include:

• Advertisements

• Employment agencies

• Tertiary institution recruiting

• Government agencies

• Flyers and direct mail

• Internship/Learnership programmes

• E-recruitment, online recruitment and the use of technology in recruitment

Wärnich et.al (2015)

!ACTIVITY

Research in detail, the various external recruitment sources referred to above and outline the attractiveness of each method.

5.1.2 Recruitment Policies

Recruitment policies reflect the organisation’s general business strategy and describes how organisations

recruit employees of the highest calibre in accordance with employment legislation, best practice and within

available resources.

A company’s recruitment policy usually includes information on the following aspects:

• Whether internal or external recruitment will take place.

• If relatives of existing employees may be hired.

• If part-time, or any type of flexitime workers will be considered.

• If people over retirement age may be employed. (Nel and Werner, 2014).

5.1.3 Trends in recruitment

Nel and Werner (2014) state that the pressure to improve productivity will always increase and organisations

will have to look for more efficient and effective ways to utilise their resources.



5.1.3.1 Telecommuting This is the new trend for many employees to maintain an office at their homes and carry out all their

normal duties while linked to the head office of their company by means of telephone, fax, personal

computer and email. This is especially beneficial to working mothers.

5.1.3.2 Flexiwork and flextime Flexitime helps organisations to recruit skilled people who are unavailable for traditional full time work

and is particularly beneficial to those employees who wish to schedule leisure activities and family

responsibilities and take care of personal business during working hours

5.1.3.3 Contingent workers Are also known as temporary workers, part-time workers and just-in-time employees. Temporary help

may be less costly than hiring new permanent employees, particularly for companies with great

seasonal demands or for an unforecasted temporary absence of important personnel (Wärnich et.al,

2015).

5.1.3.4 Employee leasing Some companies lease their employees from a leasing company rather than employ workers

themselves. The leasing company is responsible for hiring, record keeping, disciplining, paying and

terminating the employees. It allows a company to adjust the size of its workforce with greater ease

and avoid the many responsibilities associated with hiring and terminating employees.

5.1.3.5 Compressed workweeks It is work scheduled with less than the traditional five working days per week and is usually employed

by organisations when there is a downturn in the economy. An employee works an increased number

of hours per day so that the total number of hours remains the same as it would have been had the

employee worked five days.



PRACTICAL APPLICATION – EXAMPLE KPMG has a global network of member firms operating in 150 countries employing over 138 000 people. Thus KPMG has to recruit a large number of professionals every year to cope with its fast business expansion. KPMG uses a number of employment branding strategies to attract top talent including holding career talks and information sessions at universities and recruitment fairs, organising company visits and holding student interview workshops. In Hong Kong, KPMG’s innovative Web site, Virtual Career Fair (http://vcf.kpmg.com.hk), offers job seekers comprehensive business and career information, selection criteria, mock tests, and interview tips. KPMG also provides internships for both accounting and non-accounting students. Interns who perform well will undergo a faster selection process and receive early job offers.

5.2 THE SELECTION PROCESS

Selection pulls together organisational goals, job design and performance appraisal as well as recruitment.

Finding and hiring the best person for a job is a complex process of data gathering and decision-making that

does not occur through a sudden awareness of some insight.

Selection is the process of trying to determine which individuals will best match particular jobs in the

organisational context in terms of achieving its set objectives, taking into account individual differences, the

requirements of the job and the organisation’s internal and external environments.

The selection process should not be undertaken without knowing which factors can influence the selection

decision.

5.2.1 Factors influencing Selection Table 5.3 The factors influencing selection

External factors Internal factors

• Legislation • Community • Political stability • Cultural background • The labour market • Geographic location

• Size of the organisation • Motivation of interest • Job environment • Organisational culture • Type of organisation • Organisational objectives • Speed of decision-making • Applicant pool • Selection methods



! ACTIVITY Consider the organisation at which you are currently employed or an organisation you are familiar with; 1. Research the impact of the factors highlighted above on the selection process at this

organisation 2. Identify the extent to which any of these factors had an influence on your experience of being

selected for a job

5.2.2 The Selection Process The selection process is a series of steps through which applicants pass. These steps represent the ‘tools’, or

methods of selection. The steps are mainly a number of eliminators, because as applicants drop out of the

process at each step, the applicant pool becomes smaller (Nel and Werner, 2014).

Figure 5.1 Steps in the Selection Process (Source: Nel and Werner, 2014).

Recruiting process completed

Initial screening

Gather information about applicant

Evaluate qualification of each applicant

Application blank

Interview/s

Employment tests

Reference checks

Final selection by line managers

Medical checks

Appointment

Placement on the job (induction begins)



5.2.2.1 Initial Screening

After the recruiting process is completed, the selection process starts with an initial screening of CV’s. The

basic aim of the initial screening process is to eliminate candidates that do not meet the requirements of the

vacancy (Nel and Werner, 2014). In reviewing CV’s or letters from applicants, the HR officer must determine which applicants have the minimum

qualifications indicated in the job description and job specification (Wärnich et.al 2015).

The initial screening could also produce other gains in the organisation’s interests. The HR person doing the

initial screening would be aware of multiple positions in the organisation and may be able to direct these

applications in favour of other open positions. This kind of screening activity does not only create goodwill for

the organisation but also maximises the effectiveness of the selection process.

5.2.2.2 Application form Also known as an application blank, the application form is a formal record of an individual’s application for

employment (Wärnich et.al 2015).

Applicants are required to sign the form certifying the information contained is true and that they agree for their

application to be rejected in the case of any false claims. The form should also request permission to do

reference and background checks. A recent trend among employers is to use online applications forms that

compel applicants to complete required fields before submitting applications. This eliminates the problem of

screening incomplete application forms.

Applicants who are rejected must be informed either telephonically or in writing that their application was

unsuccessful.

Candidates whose application forms or CVs closely match the requirements of the job are invited to the

organisation for an interview (Nel and Werner, 2014).

5.2.2.3 Employment tests

An employment test is used to investigate a sample of behaviour in the workplace. The use of tests are

carefully regulated by governments and professional boards. The primary reason for administering tests is to

check for the applicant’s aptitude for the job, personality fit for the job role and into the organisational culture,

to check for ability to do the job and how motivated a potential applicant is to do the job.

The advantage of using tests is that they provide accurate results and provide organisations with a way to

identify skills that may be difficult to assess in an interview. They are also low cost to administer.

The disadvantages of using tests are that they may unintentionally discriminate among candidates (Nel and

Werner, 2014).



! ACTIVITY Research the various types of pre-employment tests that companies utilise and discuss the testing standards that are required to be met as well as the aim and focus of each test.

5.2.2.4 Interviews

The purpose of the interview according to Wärnich et.al (2015), is to determine;

Whether the applicant has the ability to perform the job

Whether the applicant will be motivated to be successful

Whether the applicant will match the needs of the organisation

Research however has consistently shown that the selection interview is low in both reliability and validity for

the following reasons:

• Interviewers must constantly work to reduce personal biases – biases can be positive as well as negative.

The gender of the interviewer/wee affects the total evaluation of the interview situation and this problem

occurs even with trained, experienced interviewers.

• The content of the interviews changes because no two interviewees have the same background and

experience.

• The setting of the interview may affect the outcome. If one interview takes place early in the morning when

the interviewer is fresh and the next interview is conducted late in the afternoon when the interviewer is in

a hurry to leave, the second interviewee may receive less support when the interviewees are compared.

Also, an applicant interviewed right after the interviewer has seen an extremely impressive applicant is

more likely to get a less positive interview evaluation than normal, but an applicant following a poor

applicant may get a higher evaluation than normal.

• If the company has established a maximum number of people to interview and a deadline for filling the

position, additional pressure is placed on the interviewer. The last applicant to be interviewed may be

offered the position if the interviewer is in a hurry to fill it. Thus the applicant may fill a position that

otherwise would not have been offered (Wärnich et.al 2015).

5.2.2.4.1 Types of interviews

There are generally four types of interviews:

• Structured interview

A structured or patterned interview requires the interviewer to ask a series of predetermined, job-related

questions

• Behavioural interview



These are structured interviews with questions that reveal specific choices the applicants have made in

the past and the circumstances surrounding those choices. This type is more flexible than situational

questioning and allows candidates to explain their skills in real events from their own experience, rather

than having to imagine a hypothetical situation.

• Semi-structured interview

The interviewer must stay in control of the interview and constantly keep in mind the objectives set for this

meeting. Although these questions are used to guide the interview, the interviewer can also probe into

areas that seem to merit further investigation.

• Unstructured or non-directive interview

The interviewer does not plan the questions or the course of the interview in advance (Nel and Werner,

2014).

! ACTIVITY Highlight the advantages and disadvantages of the various interview techniques discussed above and discuss the alternatives to the interview techniques mentioned above with the advent of new technology and social media.

5.2.2.5 Reference Checks

Reference checks are a confirmation or validation from persons that are familiar with the applicant and that

support the accuracy of information furnished by the candidate in his or her application (Nel and Werner,

2014).

5.2.2.6 Medical Checks

After a decision has been made to extend a job offer, the next step in the process involves a physical/medical

examination. The main reasons for making a physical examination a pre-employment condition are:

• To ensure that the applicant qualifies for the physical requirements of the position

• To discover any medical limitations of the applicant

• To establish a record and baseline of the applicant’s health

• To reduce absenteeism and accidents by identifying health problems

• To detect communicable diseases that may be unknown to the applicant (Nel and Werner, 2014).



5.2.2.7 Offer of employment and appointment

If a candidate makes it all the way through the above steps he or she has a very good chance of receiving a

job offer. Job offers are usually made verbally and then backed up with a written offer (Nel and Werner, 2014).


1. Discuss the relative merits of internal versus external recruitment and discuss what might influence an organisation to switch from internal to external recruitment or vice versa.

2. The selection process at ZA’s Clothing has been completed and the final decision has been made to appoint the candidate. Marco is the applicant who demonstrated the best fit with both the job and the organisation. As HR manager, draft a letter of appointment to Marco detailing all the necessary requirements requesting him to complete, sign and return the form to you.



CHAPTER 6 TRAINING NEEDS ANALYSIS



LEARNING OUTCOMES: After studying this chapter you should be able to: 1. Distinguish between the concepts of training and development 2. Discuss what a systems approach to training and development is 3. Discuss the stages of the training process 4. Explain and justify the purpose of undertaking a training needs analysis 5. Apply the steps of the needs analysis process




Textbooks:






• Das, T.V & Das, H.P. (2012) “Employer Brand in India: A Strategic HR Tool for Competitive Advantage.”

Advances in Management. January, 5 (1), pp 23 – 27. (available from EBSCO)

• Davenport, R. (2010) “More than a Game.” T + D. June, 64 (6), pp 26 – 29. (available form EBSCO).

• Deiser, R. (2010) “The New Word for Alignment: Convergence.” Chief Learning Officer. April, 9 (4), p 50.

(available from EBSCO).

• Elkin, G., Zhang, H. Cone, M. (2011) “The Acceptance of Senge’s Learning Organisationl Model among

Managers in China.” International Journal of Management. December Part 2, 28 (4), pp 354 – 364.

(available form EBSCO).

• Forgacs, L. (2009) “Recruitment & Retention Across Continents.” T + D. June, 63 (6), pp 40 – 44.


• Halachmi, A. & Ngok, K. (2009) “Of Sustainability and Excellence: Chinese Academia at a Crossroads.”

Public Administration Review. December Supplement 1, Vol. 69, pp S13 – S20. (available form EBSCO).

• Harris, P. (2011) “Where Innovative Learning is the Norm.” T + D. October, 65 (10), pp 60 – 62. (available

from EBSCO).



6.1 INTRODUCTION Training refers to a planned effort by a company to facilitate learning of job-related competencies, knowledge,

skills, and behaviours by employees. The goal of training is for employees to master the knowledge, skills, and

behaviours emphasized in training and apply them to their day-to-day activities.

Traditionally companies have relied on formal training through a course, programme, or event to teach

employees the knowledge, skills, and behaviours they need to successfully perform their jobs.

Formal training refers to training and development programmes, courses, and events that are developed and

organised by the company. Typically employees are required to attend or complete these programmes, which

can include face-to-face training programmes (such as instructor-led courses) as well as online programmes

(Noe et.al., 2015).

Development refers to formal education, job experiences, relationships and assessment of personality and

abilities that help employees prepare for the future. Because it is future oriented, it involves learning that is not

necessarily related to the employee’s current job.

Traditionally training focuses on helping employees’ performance in their current jobs. Development prepares

them for other positions in the company and increases their ability to move into jobs that may not yet exist.

Development also helps employees prepare for changes in their current jobs that may result from new

technology, work designs, new customers or new product markets. Development is especially critical for talent

management, particularly for senior managers and employees with leadership potential.

As training continues to become more strategic (related to business goals), the distinction between training

and development will blur. Both training and development will be required and will focus on current and future

personal and organisation needs (Noe et.al., 2015).

6.2 A SYSTEMS APPROACH TO TRAINING AND DEVELOPMENT Due to the fact that training and development is a complex system, it is essential that it is linked to the

organisation’s objectives, goals and business strategies if it is to add value and contribute to the bottom line.

This process is known as strategic training and development and is evident when it:

• Develops essential employee capabilities that are linked to the organisation’s strategic plan

• Encourages adaptability to change

• Promotes ongoing learning in the organisation

• Creates and disseminates new knowledge throughout the organisation and facilitates communication and

focus (Wärnich et.al 2015).



6.3 STAGES OF THE TRAINING PROCESS According to Noe et. al (2015) there are six stages of the training process which emphasises that effective

training involves more than just choosing the most popular training method.

Stage 1: Needs assessment / Needs analysis

• Organisational analysis

• Person analysis

• Task analysis

Stage 2: Ensure employees’ readiness for training

• Attitudes and motivation

• Basic skills

Stage 3: Creating a learning environment

• Identification of learning objectives and training outcomes

• Meaningful material

• Practice

• Feedback

• Observation of others

• Administering and coordinating programme

Stage 4: Ensure transfer of training

• Self-management strategies

• Peer and manager support

Stage 5: Selecting training methods

• Presentational methods

• Hands-on methods

Stage 6: Evaluating training programmes

• Identification of training outcomes and evaluation design

• Cost-benefit analysis

6.3.1 Needs Analysis A key characteristic of training that contributes to competitiveness is that they are designed according to the

instructional design process. Training design process refers to a systematic approach for developing training

programmes (Noe et. al., 2015).

The terms “analysis” and “assessment” are often used interchangeably in the context of determining training

needs.



“Training-needs analysis” can be defined as a process of identifying an issue or problem, collecting, analysing

and interpreting data, and using the information obtained to select or design an appropriate HRD intervention

to address the issue or problem (Meyer et.al, 2012).

The implementation of the Skills Development Act of 1998 requires organisations (with some exceptions,

including small and micro enterprises) to submit a workplace skills plan to the relevant SETA for approval and

for recovery of part of the levy.

This workplace skills plan is a comprehensive document which requires the employer to give detailed

information regarding:

• The current skills profile by number of employees in population groups and educational levels

• The skills priorities and the number of beneficiaries in population, gender and occupational groups

• The process used to develop the workplace skills plan

• The steps used to consult employees about the plan, for instance, whether a training committee has been

established

• The plan’s relationship to the organisation’s employment equity plan

A proper analysis of the organisation’s training needs and skills requirements in the form of a skills audit is

therefore a vital step in the process of developing a workplace skills plan (Meyer et.al., 2012).

6.3.1.1 The needs-analysis process A generic process approach to needs analysis, as developed by Meyer et.al. (2012), can be used to ensure

that needs are identified and correctly analysed. It consists of a series of steps as depicted in Figure 2.5.

Collect information on an ongoing basis to identify potential issues or

problems

↓

If an issue or performance problem is identified, consult with

management to agree whether it is related to training

↓

If it is training-related, identify relevant criteria (norms, benchmarks, work

standards and desired current or future performance levels)

↓

Select a data collection method and procedures appropriate to the issue

or problem being analysed

↓



Collect data and analyse results; compare information with relevant

criteria to determine the gap; draw conclusions

↓

Report results and recommendations to the client for inclusion in the

workplace skills plan if it is considered a strategic priority

↓

If the recommendations are accepted, use identified needs for selecting

or designing the intervention

Figure 6.1 Key steps in Conducting training-needs analysis (Meyer et.al., 2012) Needs assessment according to Noe et.al (2015) typically involves organisational analysis, person analysis

and task-analysis.

Organisational analysis considers the context in which training will occur and involves determining the

business appropriateness of training, given the company’s business strategy, its resources available for

training and support by managers and peers for training activities.

Three factors need to be considered before choosing a training programme:

• Support of managers and peers – if peers’ and managers’ attitudes and behaviours are not supportive,

employees are not likely to apply training content to their jobs.

• Company strategy – it is important to identify the prevailing business strategy and goals to ensure that the

company allocates enough of its budget to training, that employees receive training on relevant topics and

that employees get the right amount of training.

• Training resources – it is necessary to identify whether the company has the budget, time and expertise

for training.

Person analysis helps identify who needs training and involves:

• determining whether performance deficiencies result from a lack of knowledge, skill or ability (a training

issue) or from a motivational or work-design problem;

• identifying who needs training; and

• determining employees’ readiness for training

Person analysis helps the manager identify whether the training is appropriate and which employees need

training. A major pressure point for training is poor or substandard performance – that is, a gap between

employees’ current performance and their expected performance. Poor performance is indicated by customer

complaints, low performance ratings or on-the-job accidents or unsafe behaviour. Another potential indicator of



the need for training is if the job changes so current performance levels need improvement or employees must

complete new tasks.

From a manager’s perspective, to determine if training is needed, for any performance problem, you need to

analyse characteristics of the performer, input, output, consequences and feedback.

Task analysis includes identifying the important tasks and knowledge, skill and behaviours that need to be

emphasised in training for employees to complete their tasks. The conditions include identifying equipment

and the environment the employee works in, time constraints (deadlines), safety considerations, or

performance standards. Task analysis results in a description of work activities, including tasks performed by

the employee and the knowledge, skills and abilities required to successfully complete the tasks.

(A job is a specific position requiring the completion of specific tasks. A task is a statement of an employee’s

work activity in a specific job.)

The four steps in a task analysis include:

• identifying the job(s) to be analysed

• developing a list of tasks performed on the job

• validating or confirming the tasks

• identifying the knowledge, skills, abilities and other factors (e.g. equipment, working conditions) needed to

successfully perform each task

6.3.2 Ensure Employees’ Readiness for Training Readiness for training refers to employee characteristics that provide employees with the desire, energy and

focus necessary to learn from training. The desire, energy and focus is referred to as motivation to learn and

this influences mastery of all types of training content, including knowledge, behaviour and skills. Managers

can ensure that employees’ motivation to learn is high by ensuring employees’ self-efficacy, understanding the

benefits of training, being aware of training needs, career interests and goals; understanding work

environment characteristics and ensuring employees’ basic skill levels.

6.3.3 Creating a learning environment For employees to acquire knowledge and skills in the training programme and apply this information in their

jobs the training programme must include specific learning principles. For learning to occur in the training

programme it must meet the following conditions:

• need to know why they should learn

• meaningful training content

• opportunities for practice



• feedback

• observe, experience and interact with training content, other learners and the instructor

• good programme coordination and administration

• commit training content to memory

6.3.4 Ensuring transfer of training Transfer of training refers to on-the-job use of knowledge, skills and behaviours learned in training.

Transfer of training is influenced by:

• manager support

• peer support

• opportunity to use learned capabilities

• technology support

• self-management skills

6.3.5 Selecting training methods A number of different methods can help employees acquire new knowledge, skills and behaviours. The

instructor-led classroom still remains the most frequently used training method. It is important to note that the

use of online learning, mobile learning and social networking for training continues to increase and

expectations are that this trend will continue.

One estimate is that nearly 40% of executives plan to use tablets such as the iPad into their new training and

development initiatives. These devices are expected to be used for learning and performance support but also

for coaching and mentoring employees, mobile gaming and microblogging (e.g., Twitter).

Regardless of the training method, for training to be effective, needs assessment, a positive learning

environment and transfer of training are critical for training programme effectiveness.

6.3.6 Evaluating training programmes Training evaluation can provide useful information including the programme’s strengths and weaknesses,

identifying which learners benefited the most and least from participating, determining the programme’s

financial benefits and costs and allowing the comparison of the benefits and costs of different programmes.

Examining the outcomes of a programme helps in evaluating its effectiveness. These outcomes should be

related to the programme objectives which help trainees understand the purpose of the programme (Noe et.al,

2015).

Training evaluation forms the last link in the loop of the systems approach to training and development, since it

determines whether the training need (the difference between the required performance and the actual

performance of the trainee) was satisfied. Without measuring what happened, the training department and its



efforts cannot be effectively assessed. It also forms the starting point for the next round of training and

development if needed.

The following aspects regarding the evaluation of training and development are of vital importance if it is to be

successful:

• The evaluation of training is a continuous process and not something that occurs only at the end of the

training period.

• Training evaluation must be well planned and objectives must be clearly indicated. Training evaluation is

not conducted on an ad hoc basis.

• Accurate and applicable measuring instruments must be used to obtain information for the purposes of

decision-making.

• Training evaluation is a form of quality control.

• Evaluation is not directed only at testing learners, but also at testing the entire training system.

(Nel and Werner ,2014).


1. What does strategic training and development mean to you? 2. Assume you have been appointed as Chief Learning and Development Officer for the organisation

at which you are currently employed or an organisation you aspire to be employed 3. Discuss how you as Chief Learning and Development Officer would ensure that training at this

organisation is strategic in nature. 4. How would you support the delivery of learning considering the advances in technology? 5. How would you undertake a needs analysis at this organisation?



CHAPTER 7 COMPENSATION SYSTEMS



LEARNING OUTCOMES: After studying this chapter you should be able to: 1. Discuss the objectives of a compensation system. 2. Apply the steps of the model to design and implement a new compensation system for an

organisation. 3. Debate the various emerging pay systems. 4. Explain when mandatory and voluntary benefits are used. 5. Compile a flexible benefits plan.




Textbooks:






• Carr, S. C., McWha, I., MacLachlan, M. & Furnham, A. (2010) “International-Local Remuneration

Differences Across Six Countries: Do They Undermine Poverty Reduction Work?” International Journal of

Psychology. October, 45 (5), pp 321 – 340. (available from EBSCO).

• English, K.T. (2015) “Putting it all together: Benefits Integration Boosts Health, Productivity.” Benefits

Magazine. 52 (10), pp 32-37 (available from EBSCO).

• Grobler, P.A. & De Bruyn, A.J. (2011) “Flexible Work Practices (FWP) - An Effective Instrument in the

Retention of Talent: A Survey of Selected JSE-Listed Companies.” South African Journal of Business

Management. December, 42 (4), pp 63 – 78. (available from Sabinet).

• Polk, L. (2015) “Considerations for Employee Benefit Programmes that benefit employers and employees.”

Benefits Law Journal. 28(1) pp 45-52 (available from EBSCO).



7.1 INTRODUCTION

In the modern organisation, with a variety of costly employee benefit programmes, wage incentive

programmes and structured pay scales, the compensation task is even more difficult and challenging for an

HR specialist. Employees’ compensation affects their productivity and tendency to stay with the organisation.

Employees’ need for income and their desire to be fairly treated by the organisation make developing the

compensation programme very important for the HR department (Wärnich et.al., 2015).

7.2 OVERVIEW OF COMPENSATION

From the employers’ point of view, pay is a powerful tool for furthering the organisation’s strategic goals.

First, pay has a large impact on employee attitudes and behaviours. It influences the kind of employees who

are attracted to and remain with the organisation, and it can be a powerful tool for aligning current employees’

interests with those of the broader organisation.

Second, employee compensation is typically a significant organisational cost and thus requires close scrutiny.

Companies often look for ways to reduce labour costs without jeopardising their relationships with their

workforces.

From the employees’ point of view, policies having to do with wages, salaries and other earnings, affect their

overall income and thus their standard of living. Both the level of pay and its seeming fairness compared with

others’ pay are important (Noe et.al. 2015).

7.2.1 Objectives of a compensation system Every company must be aware that the design of its rewards system rests largely on the objectives of its

compensation management so there has to be a clear link between compensation and performance.

It is clear that both employer and employee have to be satisfied in the employment relationship. According to

Nel and Werner (2014),the basis of employee pay satisfaction can be grouped into four categories:

• External equity – how the pay relates to other companies in the industry

• Internal equity – how fair the pay is compared to the size and profitability of the company

• Individual equity – measures the fairness of the pay based on the performance of individuals working the

same job

• Procedural equity – measures the fairness of the decision-making process of pay distribution



7.2.2 The design of a compensation system The modern view is that employees who work in a rewarding environment often tend to produce high degrees

of performance output. The reward environment is the starting point for adding value to the organisation (Nel

and Werner,2014).

7.2.2.1 Value-added compensation Value-added compensation is a compensation system in which components of the compensation package

(benefits, base pay, incentives and so on), both separately and in combination, create value for the

organisation and its employees.

7.2.2.2 Total Compensation

Total compensation includes monetary and non-monetary rewards as well as direct and indirect rewards. This

means that there are three components of total compensation; direct pay, performance-based pay and indirect

pay. The elements of total compensation are depicted in the Table below:

Table 7.1 The elements of total compensation Direct compensation Other direct compensation

• cash compensation

• basic salary

• deferred cash

• share options

• share ownership

• restricted shares

Employee Benefits Perquisites/fringe benefits

• Cars

• Holidays

• Loans

• Other

• Retirement benefits

• Death benefits

• Disability benefits

• Medical benefits

• Other Incentives

• Bonuses

• Profit sharing

• Recognition

Nel and Werner (2014)

7.2.2.3 Variable Pay

Variable pay plans are compensation systems that pay cash bonuses to a defined group of employees based

on predetermined measures of group or organisational performance. Variable pay is attractive because it does



not compound from year to year and the unspent funds can be reused each year, or can be returned to the

budget cycle.

There are four basic variable pay approaches based on the type of formula used:

• Profit sharing

• Gain sharing

• Goal sharing

• Combination plans

7.2.2.4 Purpose and importance of total compensation

• To attract potential job applicants

• To motivate employees

• To retain good employees

• To administer pay within legal constraints

7.2.2.5 A model for designing and implementing a new compensation system

Analyse present compensation structure

↓

Formulate salary policies

↓

Select compensation system

↓

Develop implementation plan

↓

Evaluate and monitor

Figure 7.1 A model for a new compensation system (Nel and Werner, 2014)

7.3 EMERGING PAY SYSTEMS

• Pay for Knowledge and skills

• Pay for competencies

• Performance-based pay

• Incentive pay systems (Nel and Werner 2014)



7.4 EMPLOYEE BENEFITS Mandatory Benefits - Benefits that must be provided by law in South Africa:

• Unemployment insurance

• Compensation for injuries and diseases

Voluntary Benefits – employees can rely on a number of benefits which are non-mandatory or voluntary

benefits on the part of the employer. It should be noted that a number of the benefits discussed do have

certain legislated minimums such as the number of days vacation leave, the number of paid public holidays,

the number of days sick leave, and maternity leave benefits. In South Africa these minimums are legislated in

the Basic Conditions of Employment Act (No. 75 of 1997):

• Vacation leave

• Paid public holidays

• Time for personal matters

• Sick leave

• Maternity leave

• Health and life insurance

• Medical aid schemes

• Pension funds

• Employee services

(Nel and Werner 2014)

7.5 BENEFIT PLANNING AND FLEXIBLE BENEFIT PLANS Today, although the tendency in bureaucratic–style organisations is still to dictate the terms of benefit

packages, employers are starting to realise that the new deal in employer-employee relationship demands

much more flexibility (Nel and Werner 2014).

According to (Nel and Werner 2014) the terms ‘flexible benefits plan’ and ‘Cafeteria benefits plan’ are

generally used synonymously. The idea of cafeteria benefits allows the employee to put together his or her

own benefits package, subject to two constraints:

• the employers must limit the total cost for each total benefits package, and;

• each benefit plan must include certain non-optional items, such as the mandatory benefits.

The philosophy behind flexible benefit plans is that no one knows the employees’ needs better than the

employees themselves and their needs change through the years, so they can alter their benefits.



? REVISION QUESTIONS 1. Consider the compensation and benefits practices of the company for which you are currently

employed at. To what extent do the compensation and benefits practices facilitate the attraction and retention of talent?

2. At the organisation in which you are employed, what component of the total compensation system is perceived to be most valuable to employees? Why do you think so?

3. To what extent are flexible benefit plans implemented within South African companies or the country you currently reside in.

4. Discuss the benefits and potential limitations of flexible benefit plans.



CHAPTER 8 PERFORMANCE MANAGMENT AND APPRAISAL



LEARNING OUTCOMES: After studying this chapter you should be able to: 1. Discuss the three main parts to performance management 2. Identify and discuss the purposes of performance management 3. Critically discuss the performance management process and its integration with the organisation’s

strategy 4. Discuss, evaluate and implement the comparative, attribute, behavioural, results and quality

approaches to performance management 5. Select the most effective approach to performance management within an organisation 6. Conduct an effective performance feedback session




Textbooks:





Journal Articles & Reports:

• Buckingham, M. and Goodall, A. (2015) “Reinventing Performance Management.” Harvard Business

Review. 93(4) pp40-50 (available from ebsco).

• Ammons, D. (2015) “Getting Real about Performance Management.” Public Management. 97(11) pp8-

11(available from ebsco).

• Bracken, D.W. and Church, A.H. (2013) “The ‘NEW” Performance Management Paradigm: Capitalising on

the unrealised potential of 360 degree feedback.” People and Stratgey. 36(2) pp34-40 (available from

ebsco).

• Peiperl, M.A. (2001) “Getting 360 degree feedback right.” Harvard Business Review.” 79(1) pp142-147

(available from ebsco).

• De Waal, A.A. (2007) “Is Performance Management Applicable in Developing Countries?: The Case of a

Tanzanian College.” International Journal of Emerging Markets. 2 (1), pp 69 – 83. (available from

Emerald).



8. INTRODUCTION TO PERFORMANCE MANAGEMENT According to Noe et.al (2015), performance management consists of three major parts to its process, which

includes;

• Defining performance – specifies which aspects of performance are relevant to the organisation.

• Measuring performance – measures those aspects of performance through performance appraisal,

which is only one method for managing employee performance.

• Performance feedback - provides feedback to employees through performance feedback sessions so

they can adjust their performance to the organisation’s goals

Performance appraisal may be viewed as only one part of the broader process of performance management.

Performance management then is the process through which managers ensure employees’ activities and

outputs are congruent with the organisation’s goals and is central to gaining a competitive advantage.

8.1 OVERVIEW OF PERFORMANCE MANAGEMENT Performance management may be defined as a process of creating a work environment or setting in which

people are enabled to perform to the best of their abilities for the achievement of shared goals. (Nel and

Werner, 2015).

8.1.1 Purposes of Performance Management • It is a process for strategy implementation

• Provides input to other HR systems such as development and remuneration

• It is a vehicle for culture change (Nel and Werner, 2014)

• Serves as an administrative purpose (Noe et.al., 2015)

8.2 THE PROCESS OF PERFORMANCE MANAGEMENT

Step 1 Understanding and identifying important performance outcomes or results.

Divisions, departments, teams and employees must align their goals and behaviours and choose to engage in

activities that help achieve the organisation’s strategy and goals.

Step 2 Understanding the process (or how) to achieve the goals established in the first step. This includes identifying

measurable goals, behaviours and activities that will help the employee achieve the performance results.



Step 3 Organisational support – involves providing employees with training, necessary resources and tools, and

frequent feedback communication between the employee and manager focusing on accomplishments as well

as issues and challenges influencing performance.

For effective performance management, managers and employees have to value feedback and regularly

exchange it.

Step 4 Involves performance evaluation, that is, when the manager and employee discuss and compare the targeted

performance goal and supporting behaviours with the actual results.

This typically involves the annual or biannual formal performance review. One way to make the formal

evaluation more effective is for managers to engage in frequent performance conversations with employees

rather than wait for the formal annual review.

Step 5 Involves the employee and manager identifying what the employee (with the help from the manager) can do to

capitalise on performance strengths and address weaknesses.

Step 6 Providing consequences for achieving (or failing to achieve) performance outcomes.

This includes identifying training needs, adjusting the type or frequency of feedback the manager provides to

the employee, clarifying, adjusting, or modifying performance outcomes, and discussions of behaviours or

activities that need improvement or relate to new priorities based on changes or new areas of emphasis in

organisational or department goals. (Noe et. al, 2015).

8.2.1 Approaches to Performance Management

There are different ways to evaluate performance. According to Noe et.al (2015), these include:

8.2.1.1 The Comparative Approach The comparative approach requires the rater to compare an individual’s performance with that of others.

Three common techniques fall under the comparative approach:

• Ranking: simple ranking requires managers to rank employees within their departments from highest

performer to poorest performer (or best to worst)

Alternation ranking consists of a manager looking at a list of employees, deciding who is the best

employee and crossing that person’s name off the list.



• Forced distribution: also uses a ranking format but employees are ranked in groups. This technique

requires the manager to put certain percentages of employees into predetermined categories.

Employees are commonly grouped into three, four or five categories usually of unequal size indicating the

best workers, the worst workers and one or more categories in between.

PRACTICAL APPLICATION – EXAMPLE The Evolution of the Forced Distribution System at GE General Electric is one of the most frequently cited companies to have utilised a comparative rating system with a forced distribution. GE, based in Fairfield, Connecticut, provides a wide array of products and services globally to customers in the areas of financial services, media entertainment, health care and energy technologies and products such as appliances and plastics. In recent years, the rigid system of requiring managers to place employees into three groups (top 20%, middle 70% and bottom 10%) has been revised to allow managers more flexibility. While the normal distribution curve is still referenced as a guideline, the reference to the 20/70/10 split has been removed and work groups are now able to have more “A players” or “no bottom 10’s”. The company did not view the forced distribution system of the past as a match for fostering a more innovative culture in which taking risks and failure are part of the business climate. As a result, the company has begun evaluating employees relative to certain traits, including one’s ability to act in an innovative manner or have an external business focus. In summary, GE’s performance management system and revisions to the system provide an example of how decisions about the measurement of performance need to consider the ramifications and resulting behaviours that are encouraged or discouraged. The consideration of culture and overall business strategy is also crucial in determining how to measure performance. (Source: Aguinis, 2014)

• Paired comparison: this method requires managers to compare every employee with every other

employee in the work group, giving an employee a score of 1 every time he or she is considered the

higher performer. Once all the pairs have been compared, the manager computes the number of times

each employee received the favourable decision (i.e. counts up the points) and this becomes the

employee’s performance score.



!ACTIVITY Evaluate the Comparative approach highlighting what advocates and critics feel about this system.

8.2.1.2 The Attribute Approach The attribute approach to performance management focuses on the extent to which individuals have certain

attributes (characteristics or traits) believed desirable for the company’s success.

There are two forms of the attribute approach:

• Graphic rating scale: is the most common form that the attribute approach to performance management

takes. A list of traits is evaluated by a five-point (or some other number of points) rating scale. The

manager considers one employee at a time, circling the number that signifies how much of that trait the

individual has.

• Mixed-standard scales: to create a mixed-standard scale we define the relevant performance dimensions

and then develop statements representing good, average, and poor performance along each dimension.

These statements are then mixed with the statements from other dimensions on the actual rating

instrument.

!ACTIVITY Evaluate the Attribute approach highlighting what advocates and critics feel about this system.

8.2.1.3 The Behavioural Approach The Behavioural Approach to performance management attempts to define the behaviours an employee must

exhibit to be effective in the job. There are three techniques that rely on the behavioural approach that define

those behaviours and then require managers to assess the extent to which employees exhibit them.

• Behaviourally Anchored Rating Scales (BARS): is designed to define performance dimensions by

developing behavioural anchors associated with different levels of performance.

To develop BARS, we first gather a large number of critical incidents that represent effective and

ineffective performance on the job. These incidents are classified into performance dimensions, and the

ones that experts agree clearly represent a particular level of performance, are used as behavioural

examples to guide the rater.

The manager’s task is to consider an employee’s performance along each dimension and determine

where on the dimension the employee’s performance fits using the behavioural anchors as guides. This

rating becomes the employee’s score for that dimension.



• Behavioural Observation Scales (BOS): is a variation of BARS and differs in two basic ways.

First, rather than discarding a large number of the behaviours that exemplify effective or ineffective

performance, a BOS uses many of them to more specifically define all the behaviours that are necessary

for effective performance.

A second difference is that rather than assessing which behaviour best reflects an individual’s

performance, a BOS requires managers to rate the frequency with which the employee has exhibited each

behaviour during the rating period. These ratings are then averaged to compute an overall performance

rating.

• Competency models: competencies are sets of skills, knowledge, abilities and personal characteristics

that enable employees to successfully perform their jobs.

A competency model identifies and provides descriptions of competencies that are common for an entire

occupation, organisation, job family or a specific job.

!ACTIVITY Evaluate the Behavioural approach highlighting the advantages and disadvantages of this system.

8.2.1.4 The Results Approach The results approach focuses on managing the objective, measurable results of a job or work group. This

approach assumes that subjectivity can be eliminated from the measurement process and that results are the

closest indicator of ones contribution to organisational effectiveness.

Two performance management systems use results:

• Balance Scorecard: the balance scorecard uses four perspectives of performance including; financial,

customer, internal or operations and learning and growth.

The financial perspective focuses on creating sustainable growth in shareholder value, the customer

perspective defines value for customers (e.g., service, quality), the internal or operation perspective

focuses on processes that influence customer satisfaction, and the learning and growth perspective

focuses on the company’s capacity to innovate and continuously improve. Each of these perspectives are

used to translate the business strategy into organisational, management and employee objectives.

Employee performance is linked with the business strategy through communicating and educating

employees on the elements of the balanced scorecard, translating strategic objectives into measures for

departments and employees and linking rewards to performance measures.

Employees need to know the corporate objectives, how they translate into objectives for each business

unit, and develop their own and team objectives that are consistent with the business unit and company

objectives.



• Productivity Measurement and Evaluation System (ProMES): the main goal of ProMES is to motivate

employees to improve team or company-level productivity. It is a means of measuring and feeding back

productivity information to employees.

ProMES consists of four steps:

First, people in an organisation identify the products or the set of activities or objectives the organisation

expects to accomplish.

Second, the staff defines indicators of the products. Indicators are measures of how well the products are

being generated by the organisation.

Third, the staff establishes the contingencies between the amount of the indicators and the level of

evaluation associated with that amount.

Fourth, a feedback system is developed that provides employees and work groups with information about

their specific level of performance on each of the indicators.

An overall productivity score can be computed by summing the effectiveness scores across the various

indicators.

!ACTIVITY Evaluate the Results approach highlighting the advantages and disadvantages of this system.

8.2.1.5 The Quality Approach Improving customer satisfaction is the primary goal of the quality approach. Fundamental characteristics of the

quality approach include a customer orientation, a prevention approach to errors and continuous improvement.

Customers can be internal or external to the organisation. A performance management system designed with

a strong quality orientation can be expected to:

• Emphasise an assessment of both person and system factors in the measurement system

• Emphasise that managers and employees work together to solve performance problems

• Involve both internal and external customers in setting standards and measuring performance

• Use multiple sources to evaluate person and system factors.

!ACTIVITY Evaluate the Quality approach highlighting what advocates and critics feel about this system.



! ACTIVITY

• Identify the performance management approach that is implemented in your organisation.

• What are the strengths and weaknesses of the performance management system in

your organisation.

8.2.2 The 360-degree Feedback system According to Noe et.al.,(2015), a recent trend in performance appraisals for management development is the

use of upward feedback and 360-degree feedback.

Upward feedback refers to appraisal that involves collecting subordinates’ evaluations of managers’

behaviours or skills.

The 360-degree feedback process is a special case of upward feedback.

In 360-degree feedback systems, employees’ behaviours or skills are evaluated not only by subordinates but

by peers, customers, their bosses and themselves. The raters complete a questionnaire asking them to rate

the person on a number of different dimensions.

The results of a 360-degree feedback system show how the manager was rated on each item. The results also

show how self-evaluations differ from evaluations from the other raters. Typically managers review their

results, seek clarification from the raters, and set specific development goals based on the strengths and

weaknesses identified.

ACTIVITY Highlight the benefits and potential limitations of the 360-degree approach.



Case Study Example Capitol One, a consumer credit company, has developed an effective 360-degree feedback system. Capitol

One has included a number of features in its 360-degree feedback system to minimise the chance that the

ratings will be used as ways to get back at an employee or turned into a popularity contest. The 360-degree

assessments are based on the company’s competency model, so raters are asked for specific feedback on a

competency area. Rather than a lengthy form that places a large burden on raters to assess many different

competencies, Capitol One’s assessment asks the raters to concentrate on three or four strengths, or

development opportunities. It also seeks comments rather than limiting raters to merely circling numbers

corresponding to how much of each competency the employee has demonstrated. These comments often

provide specific information about what aspect of a competency needs to be improved. This comment system

helps tailor development activities to fit competency development. To increase the chances that the

assessment will result in change, the feedback from the 360-degree assessment is linked to development

plans, and the company offers coaching and training to help employees strengthen their competencies.

Employees are encouraged to share feedback with their co-workers. This creates a work environment based

in honest and open feedback that helps employees personally grow.

(Noe et. al., 2015)

8.2.3 Performance Feedback If employees are not made aware of how their performance is not meeting expectations, their performance will

almost certainly not improve. Effective managers provide specific performance feedback to employees in a

way that elicits positive behavioural responses (Noe et.al.,2015).

The appraisal interview should be both evaluative and developmental. Goals that have been met do not

warrant long discussion except for the praise that must accompany these achievements ( Nel and Werner,

2014).

According to Noe et.al. (2015), to provide effective performance feedback managers should consider the

following recommendations:

• Feedback should be given frequently, not once a year.

• Create the right context for the discussion

• Ask the employee to rate his or her performance before the session

• Encourage the employee to participate in the session

• Recognise effective performance through praise

• Focus on solving problems

• Focus feedback on behaviour or results not on the person



• Minimise criticism

• Agree to specific goals and set a date to review progress.

HR practitioners and senior managers are beginning to realise that the management of employee performance

must take place within the pursuit of strategic business goals. This is one of the major reasons why many

organisations are starting to favour a multi-rater, or 360-degree approach to performance evaluation (Nel and

Werner, 2015).


1. Consider the performance management system implemented by the organisation for which you work. To what extent does this performance management system support your organisation’s achievement of a competitive advantage.

2. Discuss how you would conduct an effective performance feedback session as a manager providing feedback to your employee.

3. Analyse the various approaches to performance management and discuss how/whether these approaches meet the crieteria for effective performance management.



CHAPTER 9 LABOUR LEGISLATION IN THE HRM

ENVIRONMENT



LEARNING OUTCOMES: After studying this chapter you should be able to: 1. Explain the concept of employee relations 2. Identify and discuss employee related legislation in South Africa 3. Discuss and apply the purpose, role and function of the various employee relations related

legislation in South Africa 4. Discuss the function of SETAs, Learnerships and Workplace Skills Plans and their relationship to

each other 5. Discuss the collective bargaining process 6. Explain what collective agreements consist of 7. Discuss the organisational rights of trade unions 8. Discuss the procedure for the exercise of organisational rights of trade unions




Textbooks:





Additional Reosurces:

• www.labour.gov.za



9.1 INTRODUCTION Labour law governing employment relations derives its force and effect from a plethora of sources. With that

being said, it would be almost impossible to set upon the task of understanding the multi-faceted content of

this subject without first engaging in the hierarchy of law governing South Africa.

In terms of the Constitution ‘fair labour practice’ has been recognised as a fundamental right and as such must

be treated with the necessary attention and reverence. In line with the overall spirit of the Constitution, Part 1

sets out the manner in which this right must be interpreted.

In looking at employee relations through the prism of various legislation, one must be sure to take in account

the underlying values of the Constitution when interpreting such legislation. Thus in looking at any labour

legislation, be it statute or precedent, it is mandatory to also consider, International Law as well as foreign law;

it is also a Constitutional imperative that South African common law, which includes labour law, be developed

to bring it in line with the ethos of our Constitution, to the extent that it is inconsistent.

It thus becomes clear, that when engaging in employee relations whereby the rights and regulations are

governed predominantly by legislation, one needs to continuously question the validation of such provisions.

However, to be in a position to evaluate the law, one is required to not only understand the hierarchy of labour

law in South Africa but also keep abreast with international labour standards and developments in foreign

countries. This part aims to provide a ‘catch all reference’ in terms of relevant governing legislation, as well as

the parameters in which such legislation operates, in dealing with employee relations on a day to day basis.

9.1.1 Overview of Employee Relations in South Africa

Without sound labour relations or work employment relations South African organisations can forget about

becoming more competitive. Whether you are self-employed, work for a company or are employed by the

government, you will be working with people, and good relationships between people in the workplace are a

key requirement for sound labour relations. It is important to note that the employment relationship is

essentially a relationship between the employer (employers and employers’ organisations) and employee

(labour and trade unions), as well as between employer/employee and the state, thus making it a tripartite

relationship (Wärnich et.al., 2015).



Levels of Employment Law in South Africa

The Constitution

Labour Relations Act (and agreements and determinations controlled by the Act)

Basic Conditions of Employment Act Employment Equity Act Occupational Health & Safety Act Skills Development Act

Common Law

Contracts of Employment

9.2 SOURCES OF EMPLOYMENT RELATED LAW IN SOUTH AFRICA

Figure 9.1 Levels of employment Law in South Africa (Nel et.al., 2011)

9.2.1 The Common Law and the Employment Contract

The common law rules relating to labour law are not found in legislation but rather are derived from custom

and practice.

The employment contract may be defined as a contract between two persons, namely the employer and the

employee, for the letting and hiring of the employee’s services. In this type of contract the employer has an

obligation and duty to supervise and control the employee’s work (Nel and Werner, 2014).

9.2.2 The Basic Conditions of Employment Act (BCEA) (No. 75 of 1997)

The BCEA is a vital component of South Africa’s protective labour law framework.

The primary objective of the Act is to:

• Stipulate and regulate relevant conditions of employment and the variation of such conditions

• Contribute to the creation of a secure, equitable, non-exploitative and harmonious work climate

• Give effect to and regulate fair labour practices as advocated in the Constitution (Nel and Werner, 2014).

9.2.3 The Employment Equity Act (No.55 of 1998) (EEA) The EEA has two main elements:

• The prohibition of discrimination by all employers



• The duty placed on designated employers to implement affirmative action measures by means of

employment equity plans (Nel and Werner, 2014).

9.2.4 Labour Relations Act (No.66 of 1995) (LRA) The Act seeks to advance economic development, social justice, labour peace and the participation of

employees, as worthy stakeholders, in the workplace. Its primary objectives are the following:

• To give effect to the rights and obligations of employees and their unions as well as employers and their

organisations in accordance with the fundamental rights of the Constitution and international labour

conventions,

• To promote collective bargaining at sectoral level,

• To promote employee participation at the workplace, and

• To promote dispute resolution and labour peace

The Act is relevant to and has a considerable impact on a number of HRM key functions such as:

• Performance appraisal and management

• Training and development

• Discipline management

• Retrenchments

• Collective bargaining and employee participation

• Strike handling and dispute resolution (Nel and Werner, 2014)

9.2.5 The Skills Development Act (No. 97 of 1998) (SDA) The South African economy faces several challenges and skills development is one of those challenges. The

Skills Development Act (No. 97 of 1998), promulgated in 1999, makes provision for a new approach to skills

development that compliments the formal education, to ensure that the country develops a strategic human

development approach to improve its human capital (Nel and Werner et.al., 2014). It links skill formation to the

requirements of a growing economy and extends education and training to people both within and outside

formal employment. In tandem with the Skills Development Levies Act (No. 9 of 1999), the Skills Development

Act places a legal obligation on all employers to improve the competency levels of their workforce.

The Skills Development Levies Act (No. 9 of 1999) imposes a skills development levy on most employers, and

imposes government departments to allocate a percentage of their budget to skills development (Meyer et.al.,

2012).

As part of South Africa’s national skills development strategy, the Skills Development Act (No.97 of 1998) was

enacted Nel and Werner (2014).



The Purposes of the Act are:

• To develop the skills of the South African workforce

• To increase the levels of investment in education and training in the labour market and to improve the

return on that investment

• To encourage employers to:

- Use the workplace as an active learning environment

- Provide employees with the opportunities to acquire new skills

- Provide opportunities for new entrants to the labour market to gain work experience and

- Employ persons who find it difficult to be employed

• To encourage workers to participate in learnership and other training programmes

• To improve the employment prospects of persons who were previously disadvantaged by unfair

discrimination and to redress those advantages through training and education

• To ensure the quality of education and training in and for the workplace

• To assist:

- Work-seekers in finding work

- Retrenched workers in re-entering the labour market and

- Employers in finding qualified employees and

• To provide and regulate employment services

The Skills Development Strategy is based on the National Qualifications Framework Act (No. 67 of 2008),

which makes provision for the National Qualifications Framework (NQF), established by the South African

Qualifications Authority (SAQA) (Meyer et.al, 2012).

This body of skills development legislation has fundamentally changed the face of education and training in

South Africa. The implications of these Acts for Human Resource Development (HRD) is important to provide

guidelines for designing and implementing relevant organisational strategies (Meyer et.al, 2012).

9.2.5.1 Sector Education and Training Authorities (SETAs) There are various SETAs that have been established to cater for each national economy sector and these

institutional bodies are expected to perform the following functions:

• Strategic functions

• Implementation functions

• Communication and reporting functions

• Quality assurance functions (Meyer et.al, 2012).



9.2.5.2 Learnerships and Skills programmes A substantial amount of the SETAs time is spent in handling matters relating to learnerships (Nel and Werner,

2014).

A learnership is a mechanism to link structured learning with work experience, leading to a qualification

registered on the NQF as a reliable indicator of work readiness. (Meyer et.al, 2012).

The structured learning part of a learnership has to include the unit standard categories required to make up a

qualification:

• Fundamental learning

• Core learning

• Specialisation

Skills programmes are another form of learning intervention to achieve the objectives of the Act, and is

described as unit standard-based programmes that are occupationally based and presented by an accredited

provider, and when completed, constitute a credit towards a qualification registered on the NQF (Meyer et.al,

2012).

9.2.5.3 Workplace Skills Plan (WSP) A WSP is a strategic plan, approved by the SETA, which outlines the training and development requirements

for an organisation for a minimum period of one year. The HR department needs to follow certain steps when

developing and implementing a WSP (Nel and Werner, 2014).

Guidelines for developing a WSP:

• Step 1: Proper workplace planning

• Step 2: Analysing jobs as an input to the workplace planning process

• Step 3: Identifying and defining the organisation’s skills requirements

• Step 4: Conducting a skills audit to determine the organisation’s current skills profile

• Step 5: Defining the organisation’s skills training priorities

• Step 6: Identifying the appropriate skills programmes to address the organisation’s identified training

needs

• Step 7: Implementing the WSP

• Step 8: Monitoring, evaluating and reporting on the WSP

• Step 9: Establishing a quality assurance system to ensure effective and value-added skills training and

development (Nel and Werner, 2014).



9.2.6 Collective Bargaining Collective Bargaining is a process in which representatives of employees and representatives of the employer

(management) negotiate and otherwise interact in an attempt to reach agreements and to uphold these

agreements regarding matters that relate to or may impact on the employment relationship.

In terms of the LRA, employers are not compelled to enter into collective bargaining with employees. The Act

does, however, strongly promote good faith collective bargaining – especially at a centralised level. For this

reason it provides for bargaining and statutory councils and the conclusion of collective agreements on various

matters of mutual interest between employers and employees.

Collective bargaining takes place between employers (who may be represented by employers’ organisations)

and employees (usually represented by trade unions). It may take place at various levels and different

approaches to bargaining or bargaining styles can be used (Wärnich et.al, 2015).

The LRA respects and recognises collective agreements, those struck by representatives of employers and

representatives of employees. These agreements cover such work related issues such as:

• Recognition of trade unions

• The organisational rights of trade unions

• Bargaining units of trade unions

• Access of trade unions officials to the workplace

• Deduction of trade union dues

• Shop steward appointment and roles

• Bilateral meetings between representatives of employees and representatives of the employer

• Dispute resolution protocol

• Wage negotiation protocol

• The disciplinary and grievance codes;

and any other procedures the collective bargaining agents prefer to include (Nel and Werner, 2014).

9.2.6.1 Freedom of Association The Act in its Chapter 2 guarantees the employees’ right to freedom of association and outlaws any retributive

action and/or victimisation by the employer if the employee forms or joins a trade union and participates in its

lawful activities. Even job candidates are protected from being discriminated against because of their trade

union membership. The same freedom of association rights afforded to the employees is equally provided for

employers.

In any disputes regarding victimisation or interference with freedom of association, the complainant merely has

to prove that he or she has been compelled, threatened, prohibited or detrimentally affected in any manner



and it is then up to the defendant to prove that his or her action was not contrary to any provisions of the Act.

(Nel and Werner, 2014).

9.2.6.2 The Organisational rights of trade unions There are generally two types of trade unions that possess some power in terms of the LRA that can be used

to ‘force’ the employer to recognise them. The one is what is known as a majority trade union with at least 50

percent plus one employee representation at the workplace or trade unions that work together (collaborate)

and that have, in total, the majority of the employees at a workplace and the other is a sufficiently

representative trade union with at least 30 percent representation (a CCMA commissioner will adjudicate

disputes in this regard making use of set criteria and other considerations).

9.2.6.2.1 The organisational rights of majority trade unions (or more than one union) that together

represent the majority of employees at a workplace include the following:

• Right of access to the workplace to hold meetings with employees outside of working hours

• Right to conduct ballots among employees

• Right to conduct an election at the workplace outside of working hours

• Right to be granted stop order facilities for the payment of trade union dues

• Right to appoint shop stewards

• Right to information that may be necessary for the purpose of representation or collective bargaining

• Right to establish thresholds for representation in collaboration with the employer

• Right to reasonable leave to perform their function, in agreement with employer

9.2.6.2.2 The rights of sufficiently representative unions

When a trade union has less than 50 percent plus on employee representation in a company but at

least has around 30 percent representation:

• Right of access to the workplace to hold meetings with employees outside of working hours

• Right to conduct ballots among employees

• Right to conduct an election at the workplace outside of working hours

• Right to be granted stop order facilities for the payment of trade union dues

9.2.6.3 Procedure for the exercise of organisational rights According to Section 21 of the LRA any registered trade union may notify an employer in writing at any time

that it wishes to exercise organisational rights in a workplace. A certified copy of the trade union’s certificate of

registration must accompany the notice, which must specify the following:

• The exact workplace where the trade union seeks to exercise the rights • The types of rights they want to exercise



• The level of representativeness and evidence to substantiate the allegation

The employer must meet the registered trade union within 30 days of receiving the notice and must attempt to

conclude a collective agreement on how the trade union will exercise the rights in that workplace.

If a collective agreement is not concluded, either the trade union or the employer may refer the dispute in

writing to the CCMA. The CCMA is enjoined to appoint a commissioner to attempt to resolve the dispute

through conciliation (Nel and Werner, 2014).

9.2.7 Occupational Health and Safety Act (No. 85 of 1993) (OHSA) The aim of the OHSA is to establish institutions such as health and safety committees and the appointment of

safety representatives at the workplace to promote and monitor health and safety in all areas where work is

done.

The Act introduces rules and standards by which organisations will be judged and the sanctions that they can

expect when standards are breached (Nel and Werner, 2014).

9.2.8 Unemployment Insurance Act (No. 63 of 2001) (UIA) The Act was promulgated to establish the Unemployment Insurance Fund (UIF) which is entrusted to provide

unemployment benefits, maternity and adoption benefits and dependent’s benefits related to the

unemployment of such employees.

Employees contribute the equivalent of 1 percent of their remuneration which is matched by the employer in

equal measures.

9.3 CONCLUSION

The protective labour laws outlined provide the legal framework that underpins labour legislation in South

Africa and guidelines for HRM and HRD practitioners.



? REVISION QUESTIONS 1. Provide a summary of the main provisions and purposes of the various labour laws that

underpin labour legislation in South Africa. 2. Outline and apply the practical steps that should be applied in your workplace to ensure that

HRM strategies are aligned with the relevant legislation. 3. Describe what a union is and explain why employees join unions.



REFERENCES • Absar, M.M.N. (2012) “Recruitment & Selection Practices in Manufacturing Firms in Bangladesh.” Indian

Journal of Industrial Relations. January, 47 (3), pp 436 – 449. (available from EBSCO).

• Ammons, D. (2015) “Getting Real about Performance Management.” Public Management. 97(11) pp8-

11(available from EBSCO).

• Azolukwam, V.A., Perkins, J.S. (2009) “Managerial Perspectives on HRM in Nigeria: Evolving

Hybridization?” Cross Cultural Management: An International Journal. 16 (1), pp 62 – 82. (available from

Emerald).

• Bartram, T., Stanton, P. & Thomas, K. (2009) “Good Morning Vietnam: New Challenges for HRM.”

Management Research News. 32 (10), pp 891 – 904.

• Bielski, L. (2007) “Getting to “yes” with the right candidates.” ABA Banking Journal 99 (3) pp 30-51

(available form EBSCO)

• Bourne, A. and Haddon, D. (2010) "An evidence-based approach to developing HR strategy:

transformation in Royal Mail". Strategic HR Review, Vol. 9, No.1, pp.10 – 16.

• Bracken, D.W. and Church, A.H. (2013) “The ‘NEW” Performance Management Paradigm: Capitalising on

the unrealised potential of 360 degree feedback.” People and Stratgey. 36(2) pp34-40 (available from

EBSCO).

• Brewster, C., Morley, M. & Buciuniene, I. (2010) "The Reality of Human Resource management in

Central and Eastern Europe." Baltic Journal of Management. 5 (2), pp. 145 – 155. (available from

Emerald).

• Brewster, C., Paauwe, J. (2009) “In Search of Balance – Managing the Dualities of HRM: An Overview of

the Issues.” Personnel Review. 38 (5), pp 461 – 471. (available from Emerald).

• Buckingham, M. and Goodall, A. (2015) “Reinventing Performance Management.” Harvard Business

Review. 93(4) pp40-50 (available from EBSCO).

• Carr, S. C., McWha, I., MacLachlan, M. & Furnham, A. (2010) “International-Local Remuneration

Differences Across Six Countries: Do They Undermine Poverty Reduction Work?” International Journal of

Psychology. October, 45 (5), pp 321 – 340. (available from EBSCO).

• Chand, M. & Katou, A.A. (2007) “The Impact of HRM Practices on Organisational Performance in the

Indian Hotel Industry.” Employee Relations. 29 (6), pp 576 – 594. (available from Emerald).

• Darrag, M., Mohamed, A., Aziz, H.A. (2010) “Investigating Recruitment Practices and Problems of Multi-

National Companies (MNCs) Operating in Egypt.” Education, Business & Society: Contemporary Middle

Eastern Issues. Pp 99 – 116.

• Das, T.V & Das, H.P. (2012) “Employer Brand in India: A Strategic HR Tool for Competitive Advantage.”

Advances in Management. January, 5 (1), pp 23 – 27. (available from EBSCO).



• Davenport, R. (2010) “More than a Game.” T + D. June, 64 (6), pp 26 – 29. (available form EBSCO).

• De Waal, A.A. (2007) “Is Performance Management Applicable in Developing Countries?: The Case of a

Tanzanian College.” International Journal of Emerging Markets. 2 (1), pp 69 – 83. (available from

Emerald).

• Deiser, R. (2010) “The New Word for Alignment: Convergence.” Chief Learning Officer. April, 9 (4), p 50.


• El-Kot, G. & Leat, M. (2008) “A Survey of Recruitment and Selection Practices in Egypt.” Education,

Business & Society: Contemporary Middle Eastern Issues. 1 (3), pp 200 – 212.

• Elkin, G., Zhang, H. Cone, M. (2011) “The Acceptance of Senge’s Learning Organisationl Model among

Managers in China.” International Journal of Management. December Part 2, 28 (4), pp 354 – 364.


• English, K.T. (2015) “Putting it all together: Benefits Integration Boosts Health, Productivity.” Benefits

Magazine. 52 (10), pp 32-37 (available from EBSCO).

• Eyring, M.J., Johnson, M.W. & Nair, H. (2011) “New Business Models in Emerging Markets.” Harvard

Business Review. Jan/Feb, 89 (1/2), pp 88 – 95. (available from EBSCO).

• Faragher, J. (2015) “How to find talent on a budget…without cutting corners.” People Management. Pp 44-

47(available form EBSCO).

• Fernandez-Araoz, C., Groysberg,B. & Nohria, N. (2009) “The Definitive Guide to Good Recruiting in Good

Times and Bad.” Harvard Business Review. May, 87 (5), pp 74 – 84. (available from EBSCO).

• Forgacs, L. (2009) “Recruitment & Retention Across Continents.” T + D. June, 63 (6), pp 40 – 44.


• Ghebregiorgis, F. & Karsten, L. (2007) “Employee Reactions to Human Resource Management and

Performance in a Developing Country: Evidence from Eritrea.” Personnel Review. 36 (5), pp 722 – 738.

(available from Emerald).

• Grobler, P., Bothma, R., Brewster, C., Carey, L., Holland, P., and Wärnich (2014) Contemporary Issues in

Human Resource Management. South Africa: Oxford University Press.

• Grobler, P.A. & De Bruyn, A.J. (2011) “Flexible Work Practices (FWP) - An Effective Instrument in the

Retention of Talent: A Survey of Selected JSE-Listed Companies.” South African Journal of Business

Management. December, 42 (4), pp 63 – 78. (available from Sabinet).

• Gubman, E. (2004) “HR Strategy and Planning: From Birth to Business Results.” Human Resource

Planning. 27(1), pp13-23 (available from EBSCO).

• Halachmi, A. & Ngok, K. (2009) “Of Sustainability and Excellence: Chinese Academia at a Crossroads.”

Public Administration Review. December Supplement 1, Vol. 69, pp S13 – S20. (available form EBSCO).

• Harris, P. (2011) “Where Innovative Learning is the Norm.” T + D. October, 65 (10), pp 60 – 62. (available

from EBSCO).



• HRMID (2012) “HRM Spreads Word to the World: When Culture and Country Affect Company.” Human

Resource Management International Digest. 20 (3), pp 18 – 21. (available from Emerald)

• Jana, F. and Jan, R. (2015) “Get strategic Human resource Management Really Strategic: Strategic HRM

In Practice.” International Journal of Management Cases. 17 (4) pp148-155 (available from Ebsco).

• Karamchandani, A., Kubzansky, M. & Lalwani, N. (2011) “Is the Bottom of the Pyramid Really for You?”

Harvard Business Review. 89 (3), pp 107 – 111. (available from EBSCO).

• Katz, L.M. (2015) “Cool and Competent) HR Magazine. 60(2) pp 56-60 (available form ebsco).

• Kramer, R. (2014) “Beyond Strategic human resource management:is sustainable human resource

management the next approach?” International Journal of Human Resource Management. 25(8) pp1069-

1089 (available from EBSCO).

• Macleer, B. and Shannon, J. (2003) “Does HR Planning Improve Business Perofrmance.” Industrial

Management 45(1) (available from EBSCO).

• Mangaliso, D.T.H., Mzamo, P., Mangaliso, N.A. (2010) “Some Implications of the Inter-Cultural Approach

to International Human Resource Management: Ubuntu and Ummah.” Academy of Management Annual

Meeting Proceedings. pp 1 – 6. (available from EBSCO).

• Marler, J.H. (2012) “Strategic Human Resource Management in Context: A Historical and Global

Perspective.” Academy of Management Perspectives. 26(2) pp6-11 (available from ebsco).

• Meyer, M. (2012) Managing Human Resource Development. A strategic learning approach. 4th edition.

Durban: Lexis Nexis.

• Meyer, M., Roodt, G., Robbins, M. (2011) Human resources risk management: Governing people risks

for improved performance. SA Journal of Human Resource Management. 9(1) pp 1-12.





• Okpara, J.O. & Wynn, P. (2007) “Human Resource Management Practices in a Transition Economy:

Challenges & Prospects.” Management Research News. 31 (1), pp 57 – 76. (available from Emerald)

• Othman, A.E.A (2009) “Strategic Integration of Human Resource Management Practices: Perspectives of

Two Major Japanese Electrical and Electronics Companies in Malaysia.” Cross Cultural Management: An

International Journal. 16 (2), pp 197 – 214. (available from Emerald).

• Peiperl, M.A. (2001) “Getting 360 degree feedback right.” Harvard Business Review.” 79(1) pp142-147


• Polk, L. (2015) “Considerations for Employee Benefit Programmes that benefit employers and employees.”

Benefits Law Journal. 28(1) pp 45-52 (available from EBSCO).



• Raghu Raman, S., Budhwar, P. & Balasubramanian, G. (2007) “People Management Issues in Indian

KPOs.” Employee Relations. 29 (6), pp 696 – 710.

• Raman, A. (2009) “The New Frontiers.” Harvard Business Review. 87 (7/8), pp 130 – 137. (available from

EBSCO).

• Reilly, P. (2012) “HR’s Future in a Global Setting.” Human Resource Management International Digest. 20

(3), pp 3 – 5. (available from Emerald).

• Ulrich, D., Brockbank, W. & Johnson, D. (2009) “The Role of Strategy Architect in the Strategic HR

Organisation.” People & Strategy. 32 (1), pp 24 – 31. (available from EBSCO).

• Wärnich, S., Carrell, M.R., Elbert, N.F., Hatfield, R.D (2015) Human Resource Management in South

Africa. United Kingdom: Cengage Learning.

• www.labour.gov.za

CONTEMPORARY HUMAN RESOURCE MANAGEMENT › documents › ModulesJuly2016 › BBA... · • Basic...

Documents

Transcript of CONTEMPORARY HUMAN RESOURCE MANAGEMENT › documents › ModulesJuly2016 › BBA... · • Basic...