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SABPP 2013 | Draft HR Management System Standards for South Africa 1

DRAFT NATIONAL HRM SYSTEM STANDARD 2013

CLOSING DATE FOR COMMENTS: 10 JULY 2013

SABPP 2013 | HR MANAGEMENT SYSTEM STANDARDS MODEL FOR SOUTH AFRICA 2

TABLE OF CONTENTS

PAGE

HR MANAGEMENT SYSTEM STANDARD MODEL FOR SOUTH AFRICA 3

1 Preface – Moving HR forward in a changing world of work 4

SECTION 1 5

2 Introduction 5

3 Acknowledgements 6

4 Benefits of using standards 7

SECTION 2

5 Standards scope 9

6 Corporate governance 9

7 International standards – compatibility 9

SECTION 3

8 Principles of Implementing a HR Management System Standard 12

9 Objectives of a HR Management System Standard 12

10 Continuous improvement 12

SECTION 4

11 Roles and responsibilities 14

SECTION 5 – NATIONAL HR SYSTEM STANDARD

1 Standard element 1: Strategic HR Management 15

2 Standard element 2: Talent Management 17

3 Standard element 3: HR Risk Management 19

4 Standard element 4: Workforce Planning 21

5 Standard element 5: Learning & Development 22

6 Standard element 6: Performance Management 25

7 Standard element 7: Reward 27

8 Standard element 8: Employee Wellness 29

9 Standard element 9: Employment Relations Management 31

10 Standard element 10: Organisation Development 33

11 Standard element 11: HR Service Delivery 35

12 Standard element 12: HR Technology 37

13 Standard element 13: HR Measurement 39

CONCLUSION 41

SABPP 2013 | HR MANAGEMENT SYSTEM STANDARDS MODEL FOR SOUTH AFRICA 3

HR MANAGEMENT SYSTEM STANDARDS MODEL FOR SOUTH AFRICA

The SABPP is proud to present the South African HR professional and business community with the

first version (2013) of the SABPP HR Management System Standards (HRMSS) Model. The model

encompasses the four phases of good quality management practice, i.e. prepare, implement, review

and improve, but contextualised for the field of HR Management.

The 13 HR standard elements as agreed by HR Directors are as follows:

Business strategy – HR alignment

1. Strategic HRM

2. Talent management

3. HR Risk Management

Functional/cross functional HR value chain

4. Workforce planning

5. Learning & Development

6. Performance management

7. Reward

8. Wellness

9. Employment Relations Management

10. Organisation Development

11. HR Service Delivery

12. HR Technology

Measurement

13. HR Measurement

SABPP 2013 | P R E F A C E 4

P R E F A C E

1. GETTING THE BASICS RIGHT IN HR – FOUNDATION FOR MOVING HR FORWARD IN A

CHANGING WORLD OF WORK

In the next few years, businesses all over the world will probably see an accelerating need for

improved HR management, learning facilitated talent mobility programmes, leadership development

and reengagement of their workforces. Finding the right talent and engaging employees in the right

behaviours remain the critical ingredients of how organisations manage the uncertain and volatile

economic conditions facing them today.

Talk about the need for change in this globally challenged work place environment, and even more

so in a developing and emerging economy such as South Africa.

HR needs to move rapidly towards a business driven profile away from the traditional transactional

workplace role of HR, driving the business model through talent management, business agility,

globalisation and flatter organisations, and this imperative encourages a rethink of many traditional

HR practices. Moreover, the need for a new focus on HR governance and risk management is key.

Leading practices include: continuous recruiting; continuous learning; continuous engagement;

continuous management and feedback; and continuous recognition and rewards. These define a

more agile model for HR. However, before we can drive leading practices, we need to get the basics

right.

The adoption of professionally accepted HR standards for South Africa can help all South African

organisations to move up the change curve more rapidly. Standards establish the good practice

pathway for organisations to follow.

The 13 elements of the SABPP HR standard reflect the new direction, driving business objectives

through effective and efficient workforce management.

SABPP 2013 | SECTION 1 – INTRODUCTION AND BENEFITS 5

SECTION 1 – INTRODUCTION AND BENEFITS

2. INTRODUCTION TO THE SABPP STANDARDS

The HR function in contemporary organisations is concerned with people enabling, people

development and a focus on making the “employment relationship” fulfilling for both management

and employees.

In recent decades, the idea of “resource centric organisation” has gained popularity. This involves

looking at all the resources utilised by the organisation in reaching its objectives and ensuring

optimal use of each resource separately and as an integrated whole. It has become imperative to put

“people first” while making sure of maximising the ROI (Return on Investment) on all resources. This

has led to the development of the modern HRM function which has to balance ensuring the

fulfilment of management objectives with ensuring that the needs of people resources are taken

care of, while maximising the contribution of human capital to the success of the business.

In this way, HR management (HRM) differs from personnel management not only in its broader

scope but also in the way in which its mission is defined. HRM goes beyond the administrative tasks

of personnel management and encompasses a broad vision of how management would like the

people resources to contribute to the success of the organisation.

Investors today are increasingly looking at the value of the intangible assets of a business in deciding

where to invest. There are several efforts underway globally to formulate an evidence-based

framework that can present valid information about how human capital, as one of the intangible

assets, can be evaluated as investment risk.

The SABPP HR Management System Standard emphasises the importance of human resource

management as a leadership imperative and management instrument for monitoring and verifying

the effective implementation of an organisation's HR strategy. Establishing standards is also an

essential part of conformity assessment activities such as external certification/registration and of

supply chain evaluation and compliance. Essentially, if you meet the national HR standard, but your

suppliers don’t, your business could be adversely affected, hence the need for a national HR

standard.

This SABPP Standards provide guidance on the management of HR management programmes, the

conduct of HR management systems, and on the competence of HR professionals applying the

standards, as well as providing a framework for HR service providers operating as consultants and

learning providers. The standards are intended to apply to a broad range of potential users,

including organisations implementing human resource management systems for the first time;

organisations needing to conduct benchmarking of existing management systems for contractual

reasons; and organisations needing to include HR into internal audit and risk assessment processes.

SABPP 2013 | ACKNOWLEDGEMENTS 6

The HR Standard can also be useful to organisations involved in certification/registration of

management systems, in accreditation or in standardisation in the area of conformity assessment.

The guidance in these SABPP Standards is intended to be flexible. As indicated at various points in

the text, the use of these guidelines can differ according to the size, nature and complexity of the

organisation, as well as its objectives and scope in wishing to implement a human resource

management system. Although these SABPP Standards are written for the defined elements of the

HR Management System, the user can consider adapting or extending the guidance provided herein

to apply to other elements such as leadership or audits.

At this stage, these SABPP Standards provide only “should” guidance. However, users can apply

them to develop their own mandatory integrated management system, relating requirements of

these Standards to international management system standards or specific internal requirements.

3. ACKNOWLEDGEMENTS

The assistance of the following people and organisations in developing these Standards is gratefully

acknowledged:

Lead Facilitator: Dr Michael Robbins, MD: IMOR (UK)

Standard 1 Facilitator: Elizabeth Dhlamini-Kumalo, HR Director: Sandvik

Standard 2 Facilitator: Marius Jacobs, Director: Talent Factor

Standard 3 Facilitator: Mohen Moopanar: Senior Manager Advisor: Ernest & Young

Standard 4 Facilitator: Annetjie Moore, Principal: Odgers Berndtson South Africa

Standard 5 Facilitator: Linda Chipunza, Head: Learnerships: FNB

Standard 6 Facilitator: Fienie Rossouw Janse van Rensburg, MD: Institute for Performance

Management

Standard 7 Facilitator: Mike Honnet, Director: Mike Honnet & Associates

Standard 8 Facilitator: Tracey Harper, Senior Integrated Workforce Health and Wellness Consultant:

EOH

Standard 9 Facilitator: Sithembele Stofile, Head: Professional Services: SABPP

Standard 10 Facilitator: Otto Pretorius, Principal Thought Leader & Director: QBit

Standard 11 Facilitator: Kate Dikgale-Freeman, Director: DNA Consulting

Standard 12 Facilitator: Dawid Swart, Change Manager: African Rainbow Minerals

Standard 13 Facilitator: Anthea Saffy, HRD Manager: Anglo Platinum


SABPP also wants to thank the following professional bodies, associations and companies for their

enthusiastic support of the initiative:

Employee Assistance Professionals Association of South Africa

Human Capital Institute (Africa)

South African Reward Association

Southern African Organisation Development Network

South African Professional Trainers Association

International Society for Improvement (Southern African chapter)

Assessment Centre Study Group

QBit Consulting

Sage VIP Payroll

EOH

All standard writers, commentators and sponsors will be acknowledged in the final HR Standards

Guide and on the launch on 20 August 2013.

BENEFITS OF USING STANDARDS1

While the absence of standards perpetuate inconsistencies in practice, the benefits of standards as

described by the British Standards Institute are useful for this project:

Improved performance

Comparing present performance to standards allows the identification of gaps and

the formulation of plans to close those gaps.

Reduced risk

A systematic review of operations in comparison to standards can reveal

unidentified risks, which can then be analysed and mitigation strategies put in place.

Enhanced reputation

Adherence to standards is increasingly the floor requirement for tenders and

contracts. In the field of HR and people management, potential employees are

attracted to organisations that have a good reputation for developing people and

managing them well.

1 With acknowledgements to the British Standards Institute. www.bsigroup.com


Encourage innovation

In a global economy of rapidly emerging new technologies and markets, standards

help set the rules and establish the frameworks, making it easier to innovate

successfully.

SABPP 2013 | SECTION 2 – SCOPE, GOVERNANCE AND LINKAGES 9

SECTION 2 – SCOPE, GOVERNANCE AND LINKAGES

4. SCOPE OF THE HR STANDARDS

These SABPP Standards establish a common set of criteria for the management of human resources

within all South African organisations, irrespective of size, sector or industry. This is a national

standard for all organisations in South Africa, including multinationals operating in South Africa.

5. CORPORATE GOVERNANCE

Corporate governance refers to the policies, procedures and processes according to which an

organisation is directed and controlled, according to the approaches adopted by the European

Central Bank and the King III Code and Report on Governance for South Africa. The corporate

governance structure specifies the distribution of rights and responsibilities among the different

participants in the organisation – such as the board, managers, shareholders and other stakeholders

– and lays down the rules and procedures for decision-making. Likewise, HR governance refers to

the policies, procedures and processes according to which HR is directed and controlled.

The overall purpose of a management review is to evaluate the suitability, adequacy, and

effectiveness of an organisation's management system, and to look for improvement opportunities.

Management reviews are also used to identify and assess opportunities to change an organisation’s

policy and procedures, to address resource needs, and to look for opportunities to improve its

products or services

For governance and management reviews to be effective, clear standards and requirements must be

established, and this HRMSS intends to ensure that HR is effectively governed and managed in South

Africa.

6. INTERNATIONAL MANAGEMENT STANDARDS – COMPATABILITY AND LINKAGES

The SABPP HR Standards are compatible with international management standards in their format

and requirements and as such, can be introduced into any organisation that is currently using one or

more of the sets of international standards. The South African HR Standards will provide clarity and

detail to implement relevant parts of the other international standards in our national context.

According to the International Standards Organisation a standard is a document that provides

requirements, specifications, guidelines or characteristics that can be used consistently to ensure

that materials, products, processes and services are fit for their purpose.

International standards in common use in organisations include:

SABPP 2013 | INTERNATIONAL MANAGEMENT STANDARDS – COMPATABILITY AND LINKAGES 10

International Standards Organisation (ISO)

The ISO has several series of standards:

ISO 9000 Quality management

ISO 14000 Environmental management

ISO 3166 Country codes

ISO 26000 Social responsibility

ISO 50001 Energy management

ISO 31000 Risk management

ISO 22000 Food safety management

ISO 639 Language codes

The Risk Management series is of particular relevance to HR. According to ISO 31000, risk is the

“effect of uncertainty on objectives”. An effect is a positive or negative deviation from what is

expected. Risk management refers to a coordinated set of activities and methods that is used to

direct an organisation and to control the many risks that can affect its ability to achieve objectives.

According to the Introduction to ISO 31000 2009, the term risk management also refers to the

architecture that is used to manage risk. This architecture includes risk management principles, a risk

management framework, and a risk management process.

The European Foundation for Quality Management (EFQM)

The EFQM’s Excellence Model is the most popular quality management tool amongst European

organisations. This Model uses 8 fundamental concepts of excellence :

SABPP 2013 | 11

Several of these fundamental concepts relate to people, and the implementation of HR policies,

procedures and systems.

Investors in People (IiP)

Investors in People, originating in the UK and now international, is a specialist set of Standards

focusing on people development as a source of strategy implementation. IiP was introduced to

South Africa in 2002 and has been implemented in over 500 organisations in this country. The SABPP

HRMS Standards and the IiP overlap to some extent, but will complement each other in reaching the

twin goals of business improvement through people and people development through work. The

SABPP HRMS Standard is a professional body standard and its focus is therefore on professional HR

practice.

SABPP 2013 | SECTION 3 – PRINCIPLES AND OBJECTIVES 12

SECTION 3 – PRINCIPLES AND OBJECTIVES

7. PRINCIPLES OF IMPLEMENTING A HUMAN RESOURCE MANAGEMENT SYSTEM

Whilst the implementation of an HRMS is about policies, procedures and systems, the people

context must not be forgotten. It is therefore important to hold the following principles:

Ethical conduct: the foundation of professionalism.

Trust, integrity, confidentiality and discretion are essential to HRM.

Fair presentation: the obligation to report truthfully and accurately.

Due professional care: the application of diligence and judgment in HRM

Risk-based approach.

It is therefore essential to read and apply the HRMS is conjunction with the National HR Competency

Model, given the fact that the competency standards in the latter model will support the

understanding and implementation of the HRMS.

8. OBJECTIVES OF A HUMAN RESOURCE MANAGEMENT SYSTEM

Objectives should be established for any HRMS, to direct the planning and conduct of the

management system. In other words, what advantage do we as an organisation want to achieve by

implementing an HRMS?

These objectives may relate to:

Management priorities,

Commercial intentions,

Integrated management system requirements,

Statutory, regulatory, contractual and legislative requirements,

Supplier evaluation,

Stakeholder requirements,

Risks to the organisation.

These SABPP standards will assist organisations to realise the specific objectives they have set for

their own HRMS.

9. CONTINUOUS IMPROVEMENT

These SABPP Standards establish the elements of a continuous improvement process to develop,

implement and maintain an effective HRMS. Continual improvement is a set of recurring activities

that an organisation carries out in order to enhance its ability to meet requirements. Continual

improvements can be achieved by carrying out audits, self-assessments, management reviews, and

SABPP 2013 | CONTINUOUS IMPROVEMENT 13

benchmarking projects. Continual improvements can also be realised by collecting data, analysing

information, setting objectives, and implementing corrective and preventive actions.

Within the spirit of integration and continuous improvement, the HRMS is also intended to provide

practice standards in support of the National HR Competency Model. In this way, an integrated

standards and competence-based approach is used. The implication is that HR practitioners need the

right competencies in order to implement the HRMS. The new National HR Competency Model is

depicted below:

SABPP 2013 | 14

SECTION 4 - IMPLEMENTATION

10. ROLES AND RESPONSIBILITIES

The CEO of SABPP is responsible for championing the National HR System Standard Model as a

national SABPP project.

The SABPP Higher Education Committee, and Learning and Quality Assurance Committee will

oversee the process of accrediting university and learning provider curriculum based on the

standard.

HR professionals in all organisations will be responsible for implementing the standard and the

workplace.

SABPP will provide auditors to conduct external audits within organisations. A clear process, criteria

and evidence requirements will be developed to assist in this process.

On 20-21 August at the National HR Standard Roll-Out Event, HR professionals will collectively decide

how the standards will be implemented in the workplace. They will then develop the “how to”

standard for applying the HRMSS.

SABPP 2013 | SECTION 5 - NATIONAL HR SYSTEM STANDARD 15

SECTION 5 - NATIONAL HR SYSTEM STANDARD

HR Standard Element

1

STRATEGIC HR MANAGEMENT

1.1 D E F I N I T I O N

Strategic HR Management is a systematic approach to developing and implementing long-term HRM

strategies, policies and plans that enable the organisation to achieve its objectives.

1.2 OBJECTIVES

1.2.1 To direct and ensure the HR strategy is aligned to the organisation’s objectives.

1.2.2 To provide a foundation for the employment value proposition of the organisation.

1.2.3 To establish a framework for the HR element of the organisation’s governance, risk and

compliance policies, practices and procedures which balance the needs of all stakeholders.

1.2.4 To provide strategic direction and measurements for strategic innovation and sustainable

people practices.

1.2.5 To analyse the internal and external socio-economic environment and provide proactive

people-related business solutions.


1.3 IMPLEMENTATION

1.3.1 Translate the overall strategic intent of the organisation into HR strategy.

1.3.2 Position the strategic HR agenda as an integral part of strategic decision making and

operational plans.

1.3.3 Allocate HR resources and build capability to implement the HR mandate.

1.3.4 Provide the contextual foundation for the development of the policies, plans, practices and

procedures.

1.3.5 Ensure accountability and responsibilities for the execution of HR strategy is measured and

monitored within the governance framework of the organisation.

1.3.6 Drive continuous improvement and sustainability of the HR strategy through planned reviews

and integrated reporting.

1.4 NOTES

This standard element should be read and applied by taking cognisance of all the other standard

elements, but with a particular focus on talent management, HR risk management, workforce

planning, HR service delivery and HR measurement.

HR Competency Model: HR practitioners must be able to play an appropriate role in the following

outputs:

Participation of formulation on business strategy

Leadership in formulation of people strategy

HR Business Plan


HR Standard Element

2

TALENT MANAGEMENT

2. 1 D E F I N I T I O N

Talent Management is the proactive design and implementation of a talent-driven business strategy

directed to attracting, deploying, developing, retaining and optimising the appropriate talent

requirements as identified in the workforce plan.

2.2 OBJECTIVES

2.3.1 To identify mission critical positions and leadership roles in the organisation into the future

from the Workforce Plan.

2.3.2 To set up processes and systems which will:

Attract a sustainable pool of talent for current objectives and future organisation needs.

Manage the retention and reward of talent.

Link high potential employees with key future roles in the organisation.

Identify through assessment the optimal development opportunities for talent.

2.3.4 To achieve consistent high levels of performance from employees.

2.3.5 To agree appropriate roles for all stakeholders in the development and management of talent.

2.3.6 To monitor and report on talent management key results areas and indicators.


2.4 IMPLEMENTATION

2.4.1 Analyse the talent needs of the organisation.

2.4.2 Conduct a workforce and labour market trend analysis based on internal and external

requirements and realities.

2.4.3 Create a talent management system focusing on current and future needs.

2.4.4 Engage line management regarding talent requirements.

2.4.5 Decide on interventions to support effective talent management in the organisation.

2.4.6 Conduct a talent review linked to organisational objectives.

2.5 NOTES


elements, but with a particular focus on strategic HR management, HR risk management, workforce

planning, learning and development, organisation development, HR technology and HR

measurement.


outputs:

Employment Value Proposition (EVP)

Skills acquisition and retention strategies

Leadership development

Integration of talent management activities

Succession management


HR Standard Element

3

HR RISK MANAGEMENT


HR Risk Management is a systematic approach of identifying and addressing human factors

(uncertainties and opportunities) that can either have a positive or negative effect on the realisation

of the objectives of an organisation.

3.2 OBJECTIVES

3.2.1 To increase the probability and impact of positive events and decrease the probability and

impact of negative events caused by human factors on the achievement of organisational objectives.

3.2.2 To align HR and people management practices within the governance, risk and compliance

framework and integrated reporting model of the organisation.

3.2.3 To ensure appropriate risk assessment practices and procedures relating to human factors are

embedded within the organisation.

3.2.4 To ensure appropriate risk controls are designed and applied to HR activities and

interventions.

3.2.5 To give the means to HR to play its key contributor role in creating and sustaining a risk culture

in an organisation.

3.3 IMPLEMENTATION

3.3.1 Position the role of HR in influencing and communicating the organisational risk culture.

3.3.2 Assess potential positive and negative human factor risks to achieving organisational

objectives.


3.3.3 Identify and evaluate the potential risk impacts with regard to strategic and operational HR

activities.

3.3.4 Decide on appropriate risk appetites for the different components of the HR function.

3.3.5 Design and implement appropriate people-based risk management systems and risk controls.

3.3.6 Ensure all HR risk practices conform to the organisational governance, risk and compliance

strategies and policies including integrated reporting.

3.4 NOTES


elements, but with a particular focus on strategic HR management, talent management, reward

employment relations management, workforce planning, HR service delivery and HR measurement.


outputs:

Governance principles and adherence

Legislation knowledge and compliance

HR Risk Management


HR Standard Element

4

WORKFORCE PLANNING


Workforce planning is the systematic identification and analysis of organisational workforce needs

culminating in a workforce plan to ensure sustainable organisational capability in pursuit of the

achievement of its strategic and operational objectives.

4.2 OBJECTIVES

4.2.1 To design a strategic workforce plan meeting the needs of the organisation.

4.2.2 To align the workforce planning cycle with the strategic planning cycle of the organisation.

4.2.3 To evaluate and review workforce and labour market trends in relation to your industry sector.

4.2.4 To ensure appropriate budgeting or cost modelling to execute the workforce plan.

4.2.5 To manage the supply of appropriately qualified people to ensure an adequate pipeline of

appropriately qualified staff.

4.3 IMPLEMENTATION

4.3.1 Conduct skills gap analysis in conjunction with the development of organisational objectives.


4.3.2 Decide on appropriate sourcing models either internally or externally to sustain organisational

performance (e.g. outsourcing, joint ventures, co-sourcing, partnerships).

4.3.3 Align workforce plan with employment value proposition and branding.

4.3.4 Translate the strategic workforce plan into operational capability.

4.3.5 Plan and implement enabling interventions to achieve your workforce plan (e.g. recruitment

and selection, succession planning).

4.3.6 Develop career planning processes and programmes.

4.3.7 Assess the impact of workforce strategy and planning on achieving organisational objectives.

4.4 NOTES


elements, but with a particular focus on strategic HR management, talent management, organisation

development and HR measurement.


outputs:

Workforce planning and modeling

Job analysis and design

Assessment and selection

Local and international transfers

Terminations


HR Standard Element

5

LEARNING AND DEVELOPMENT

5.1. D E F I N I T I O N

Learning and development is the practice of providing occupationally directed and other learning

activities that enable and enhance the knowledge, practical skills and work place experience and

behaviour of individuals and teams based on current and future occupational requirements for

optimal organisational performance and sustainability.

5.2 OBJECTIVES

5.2.1 To enhance human performance in relation to organisational objectives.

5.2.2 To align learning and development plans to organisational strategy.

5.2.3 To create an occupationally competent and engaged workforce which builds organisational

capability in line with the objectives of the organisation.

5.2.4 To create a learning environment that enables optimal learning and growth.

5.2.5 To develop a culture that enables individual and team competency development in achieving

organisational objectives.

5.2.6 To position learning and development as a catalyst for continuous improvement, change and

innovation.

5.2.7 To evaluate the impact of learning and development interventions at an individual, team and

organisational level.


5.3 IMPLEMENTATION

5.3.1 Formulate a learning and development strategy for an organisation.

5.3.2 Align learning and development strategy with organisational goals and culture.

5.3.3 Ensure all learning and development activities conform to appropriate quality and compliance

requirements and competency models.

5.3.4 Identify, select and implement the appropriate learning and development interventions

according to the identified organisational need.

5.3.5 Ensure the design and provision of learning and development interventions are appropriate

and integrated.

5.3.6 Leverage the utilisation of appropriate online technologies to accelerate learning capacity and

capability.

5.3.7 Evaluate the impact of learning and development to assess quality, impact and alignment.

5.4 NOTES


elements, but with a particular focus on strategic HR management, talent management, organisation

development, performance management and HR measurement.


outputs:

HRD strategy and planning

Competency modeling and competency assessment

Training logistics and administration

Training needs analysis

Management of learning providers

Design and delivery of development activities

Evaluation of L&D interventions

Coaching and mentoring

Induction/orientation

Individual Development Plans (IDPs) and Career Management

Knowledge Management


HR Standard Element

6

PERFORMANCE MANAGEMENT


Performance management is a planned process of directing, supporting, aligning and improving

individual and team performance in enabling the sustained achievement of organisational

objectives.

6.2 OBJECTIVES

6.2.1 To translate and cascade broad organisational performance drivers into team and individual

performance targets.

6.2.2 To establish an appropriate performance management process, methodology and system

relevant to the needs, size, scope and complexity of the organisation.

6.2.3 To provide appropriate performance consequences (reward, recognition and development

opportunities) that attract, retain and motivate employees.

6.2.4 To ensure fair, ethical and organisation cultural practices focusing on the achievement of

performance targets.

6.2.5 To create and maintain a high performance organisation culture driving sustainable

performance.

6.2.6 To measure progress against agreed individual and team objectives that enable attainment of

organisational objectives.


6.3 IMPLEMENTATION

6.3.1 Develop a performance management strategy and policy for an organisation.

6.3.2 Implement an appropriate performance management system.

6.3.3 Ensure all staff are aware of the performance management process and system.

6.3.4 Establish a framework for linking reward to performance.

6.3.5 Ensure performance management system is integrated with the overall organisation

management system.

6.3.6 Ensure the performance management system has a mechanism for dealing with under-

performance.

6.3.7 Establish a performance driven culture focusing on outputs and targets.

6.3.8 Evaluate the effectiveness of the performance management system.

6.4 NOTES

Performance management is a line management responsibility, supported by HR through providing

processes, procedures and systems.


elements, but with a particular focus on strategic HR management, talent management, HR risk

management, learning and development, organisation development, HR service delivery and HR

measurement.


outputs:

Performance management strategy, policy and processes

Setting of performance standards and assessment of performance

Performance improvement


HR Standard Element

7

REWARD


Reward is a strategy and system that enables organisations to offer an employment value

proposition to employees in accordance with fair and appropriate levels of reward in recognition for

their contribution to the achievement of agreed deliverables in line with organisational objectives

and values. (An employment value proposition is the “deal” – what we offer as a total employment

experience to employees and what we demand in exchange.)

7.2 OBJECTIVES

7.2.1 To design and implement an appropriate employment value proposition aligned with

organisation culture and objectives, and achieving a balance between the needs of the employer and

employee.

7.2.2 To deliver a fair and equitable reward system or process and system that is ethical, cost

effective and sustainable.

7.2.3 To ensure compliance with organisational governance principles and practices aligned to

national governance codes of practice and relevant legislation.

7.2.4 To ensure your employment value proposition is in line with current industry and sector

norms.


7.3 IMPLEMENTATION

7.3.1 Establish a remuneration committee or other appropriate mechanisms for determining reward

structures, philosophy and policy.

7.3.2 Formulate a remuneration strategy and policy for your organisations that attracts, motivates

and retains staff.

7.3.3 Ensure the reward strategy is aligned with appropriate legislative, governance and other

directive requirements.

7.3.4 Identify and implement policies, practices and procedures that enable the rewards system to

operate effectively.

7.3.5 Ensure understanding and awareness of the reward system.

7.3.6 Align and integrate reward with other HR practices (e.g. performance review) for optimal

impact.

7.3.7 Benchmark and review the reward policy, process and practices at regular intervals to ensure

relevance and impact (pay scales, benefits, incentives, etc).

7.4 NOTES

This standard element should be read and applied by taking cognisance of all the other standard elements, but with a particular focus on strategic HR management, talent management, HR risk management, performance management and HR measurement.


outputs:

Rewards policy and systems

Benchmarking

Job Evaluation

Salary structuring

Salary and wage reviews

Payroll

Incentives

Employee Conditions of Employment and Benefits


HR Standard Element

8

EMPLOYEE WELLNESS


Employee wellness is a strategy to ensure that a safe and healthy work environment is created and

maintained, together with individual wellness commitment that enables employees to perform

optimally while meeting all health and safety legislative requirements and other relevant wellness

good practices in support of the achievement of organisational objectives.

8.2 OBJECTIVES

8.2.1 To promote opportunities and guidance that enables employees to engage in effective

management of their own physical, mental, financial and social well-being.

8.2.2 To enable the employer to manage all aspects of employee wellness that can have a negative

impact on employees’ ability to deliver on organisational objectives.

8.2.3 To promote a safe and healthy working environment in pursuit of optimum productivity and

preserve human life and health.

8.2.4 To reduce employee risk emanating from health and wellness issues.

8.2.5 To contain health and wellness costs.

8.2.6 To enhance the employment value proposition by means of promoting a culture of individual

health and overall organisational wellness.


8.3 IMPLEMENTATION

8.3.1 Evaluate the organisational need and set objectives and boundaries for wellness programmes

paying particular attention to high risk groups.

8.3.2 Formulate employee wellness strategy, policies and relevant HR procedures, fair to all

employees, to promote and manage wellness programmes and risks.

8.3.3 Promote awareness of the wellness policy, strategy and procedures of the organisation.

8.3.4 Maintain statistical records across the organisation with regard to all aspects of wellness and

specific case and incident analysis.

8.3.5 Consider flexible work practices and other alternative work arrangements to promote work

life balance where possible.

8.3.6 Review the effectiveness of wellness programmes and interventions in support of operational

objectives.

8.4 NOTES


elements, but with a particular focus on strategic HR management, HR risk management, employee

relations management, performance management and HR measurement.


outputs:

Wellness strategy and policy

Occupational Health and Safety

Chronic disease management

Management of opportunities for people with disabilities

Quality of work life and wellbeing

Employee services


HR Standard Element

9

EMPLOYMENT RELATIONS MANAGEMENT


Employment relations is the management of individual and collective relationships in an

organisation through the implementation of good practices that enable the achievement of

organisational objectives compliant with the legislative framework and appropriate to socio-

economic conditions.

9.2 OBJECTIVES

9.2.1 To create a climate of trust, cooperation and stability within an organisation.

9.2.2 To ensure appropriate and effective conditions of employment and fairness across all levels of

employees.

9.2.3 To achieve a harmonious and productive working environment.

9.2.4 To meet the employer’s duty of care towards its employees and other stakeholders.

9.2.5 To provide a framework for conflict resolution and collective bargaining where relevant.

9.2.6 To ensure capacity building and compliance to relevant labour legislation and codes of good

practice (ILO and Department of Labour).

9.3 IMPLEMENTATION

9.3.1 Formulate appropriate employment relations strategies, structures, policies, practices and

procedures.


9.3.2 Implement appropriate dispute resolution mechanisms (mediation, arbitration, conciliation).

9.3.3 Provide appropriate procedures to manage discipline and grievances.

9.3.4 Ensure all employment relations procedures, policies and practices conform to appropriate

legislation and codes of good practice.

9.3.5 Create effective communication channels and building relationships between stakeholders.

9.3.6 Evaluate the state of employment relations by conducting appropriate employment relations

audits to establish current climate and associated risks.

9.3.7 Enhance the established practices and procedures by innovative interventions that foster

sound relationships.

9.3.8 Leverage employment relations to promote diversity and prevent unfair discrimination.

9.3.9 Contribute to community development that improves the socio-economic environment of

employees.

NOTES

The role of the line manager is critical in maintaining sound employment relations, but HR should

support managers with this duty.



wellness, performance management and HR measurement.


outputs:

Employment Relations (ER) Strategy

Working with lawyers and agreements

ER Advice

Collective ER (a) Relationships and (b) Negotiations

Grievances and Conflict

Strikes and lockouts

Disciplinary cases

Dismissals and unfair labour practices

Restructuring – acquisitions, mergers, demergers, downsizing and outsourcing


HR Standard Element

10

ORGANISATION DEVELOPMENT


Organisation development (OD) is a planned systemic change process to continually improve an

organisation’s effectiveness and efficiency by utilising diagnostic data, and designing and

implementing appropriate solutions and interventions to measurably enable the organisation to

optimise its purpose and strategy.

10.2 OBJECTIVES

10.2.1 To establish links with organisational purpose across all levels and functions of an

organisation.

10.2.2 To ensure organisation design facilitates the purpose of the organisation.

10.2.3 To improve the ability of individuals, teams, departments and functions to work co-

operatively to meet organisation objectives and optimise engagement at work.

10.2.4 To facilitate stakeholder engagement in all OD processes to ensure optimum buy-in.

10.2.5 To build the relevant OD capability to meet organisational needs.

10.2.6 To ensure compliance with relevant continuous improvement principles and practices


10.3 IMPLEMENTATION

10.3.1 Design, develop and prioritise appropriate responses to systemic OD issues identified by

means of relevant diagnostic methodologies.

10.3.2 Ensure the clarity of OD interventions by identifying the anticipated outcomes of the OD

process.

10.3.3 Ensure OD has a clear implementation roadmap that is applicable to the organisation

structure, culture and processes.

10.3.4 Facilitate relevant change and improvement activities in line with agreed organisational

requirements.

10.3.5 Contribute to creating, building and sustaining the organisation culture needed to optimise

the purpose and strategy of the organisation.

10.3.6 Define an efficient and effective OD measurement system and its link to achieving

organisational goals.

10.4 NOTES



wellness, performance management, learning and development and HR measurement.


outputs:

Organisation behavior

Employee engagement

Team functioning

Organisational change

Healthy organisation culture

Employee communication

Productivity


HR Standard Element

11

HR SERVICE DELIVERY


HR Service Delivery can be defined as the adequate provision of HR services meeting the needs of

the organisation and its employees which enables delivery or f organisational goals and targets.

11.2 OBJECTIVES

11.2.1 To ensure timeousness, consistency and quality in the delivery of HR services.

11.2.2 To ensure sustainability of HR practices within the organisation.

11.2.3 To support the effective management of the human element in an organisation.

11.2.4 To provide effective professional advice and guidance to managers and employees regarding

the correct implementation of labour laws, HR policies, practices and procedures.

11.2.5 To establish functional standards for HR record-keeping and administration.

11.2.6. To measure employee engagement and satisfaction with the delivery of HR services.

11.2.7 To capture and provide management and the board with appropriate HR data and statistics.


11.3 IMPLEMENTATION

11.3.1 Design and implement HR policies, practices and procedures.

11.3.2 Design and implement the HR management system.

11.3.3 Ensure adequate understanding of the role of HR within an organisation.

11.3.4 Establish relevant communication channels with both management and employees to

address relevant HR matters.

11.3.5 Ensure a user-friendly mechanism for understanding, promoting and ensuring compliance

with all appropriate legislation applicable to the organisation.

11.3.6 Determine the methodology and process for establishing HR client satisfaction.

11.3.7 Provide independent professional oversight, guidance and consulting with regard to HR

policy, strategy and organisational people practices and ethical values.

11.3.8 Facilitate appropriate interventions building organisational culture and capacity.

11.4 NOTES



wellness, employment relations, performance management, learning and development and HR

measurement.


outputs:

Customer orientation

Management of HR function

Management of outsourced functions

Policy development and administration

Maintenance of documentation and records


HR Standard Element

12

HR TECHNOLOGY


HR technology is the effective utilisation of relevant technological applications and platforms that

provide accessible and accurate data, information, knowledge and intelligence that enables more

effective decision-making in enabling employees towards the implementation of organisational

strategy.

12.2 OBJECTIVES

12.2.1 To consolidate and rapidly extract relevant data in real time that empowers more effective

HR decision making.

12.2.2 To deliver effective presentation of HR data and information to board and executive

committee meetings.

12.2.3 To allow easy access to relevant data in compliance with relevant data security and other

information technology compliance requirements, laws, codes and standards (privacy).

12.2.4 To create more capacity within existing HR structures to deliver value-adding activity.

12.2.5 To streamline the HR Management System and its associated processes for effective use.

12.2.6 To enable the effective implementation of change and improvements to the HR Management

System.


12.3 IMPLEMENTATION

12.3.1 Formulate an HR Technology policy and strategy.

12.3.2 Analyse and prioritise all the relevant HR categories of data and information.

12.3.3 Forecast future system load/spare capacity.

12.3.4 Design the specification for the HR Information Technology system (i.e. software or

purchase).

12.3.5 Upload and configure data to the system.

12.3.6 Test the effectiveness of the system before implementation.

12.3.7 Build capacity of relevant staff members to access and use the system.

12.3.8 Implement continuous improvement process.

12.3.9 Ensure HR-IT policies, practices and procedures are aligned with organisational IT

governance.

12.3.10 Monitor and evaluate the effectiveness of the system.

12.4 NOTES


elements, but with a particular focus on strategic HR management, talent management, employee

wellness, performance management, learning and development, HR service delivery and HR

measurement.


outputs:

HR Management Systems and use of technology

Leverage of technological developments

Innovation


HR Standard Element

13

HR MEASUREMENT


HR measurement is a continuous process of gathering, analysing, interpreting and presenting

quantitative and qualitative data to measure and align the impact of HR practices on organisational

objectives, including facilitating internal and external auditing of HR polices, processes, practices and

outcomes.

13.2 OBJECTIVES

13.2.1 Determine measurement approaches, methodologies and metrics to assess the effectiveness

and efficiency of HR practices.

13.2.2 Identify relevant measurement areas for the purpose of integrated reporting.

13.2.3 Implement appropriate tools and methods to measure the efficiency, effectiveness and

consistency of HR practices across the whole organisation.

13.2.4 Provide a clear framework for measuring HR impact on the bottom-line of the organisation.

13.2.5 Develop performance indicators for HR service delivery and business impact.

13.3 IMPLEMENTATION

13.3.1 Develop an integrated HR measurement and systems framework for gathering data and

business intelligence.

13.3.2 Ensure data accuracy and integrity.

13.3.3 Establish and implement appropriate approaches, methodologies and metrics for the

organisation.


13.3.4 Develop an HR scorecard and relevant dashboard with key indicators and metrics for the

organisation.

13.3.5 Create awareness and build organisational capability for utilising and optimising HR

measurement, metrics and audits.

13.3.6 Conduct an internal and external audit of the HR function and people practices of the

organisation.

13.3.7 Measure the level of employee engagement and organisation climate and implement

appropriate solutions.

13.3.8 Ensure HR reporting is infused in overall organisational governance and integrated reporting.

13.3.9 Assess level of alignment of HR and people practices with business strategy.

13.3.10 Monitor the key indicators of the HR dashboard and address all risk areas.

13.4 NOTES


elements, but with a particular focus on strategic HR management, talent management, HR risk

management, performance management, learning and development, HR service delivery and HR

technology.


outputs:

Benchmarking and research

HR and business metrics

Use of metrics and analytics

Value adding reporting at operational, tactical and strategic levels

SABPP 2013 | CONCLUSION 41

CONCLUSION

This document provides a summary of the draft HR standards generated on 21 May 2013. The

SABPP board and staff members are very excited about this major milestone in the history of HR in

South Africa, and we trust that the HR professional community will share our excitement. It is our

vision that we should all collaborate in setting and raising the standard of HR work, irrespective of

our area of specialisation. We ask the HR professional community to support this ground-breaking

initiative by commenting on the first set of HR standards for South Africa. Moreover, once the final

standards are available we will all be implementers of the standards. The HR standards project will

elevate HR to the level of other professions and provide a common platform for driving sound HR

practice at all workplaces, irrespective of the type of industry and size of the organisation.

We look forward to your comments by 10 July, and we invite you to join us in launching the HR

Standards on 20 August. We will continue engaging with the HR community on the special blog

created for the standards (hrtoday.me), also follow us on twitter @SABPP1 for regular updates.

Submit comments to Marius Meyer on

[email protected] by 10 July 2013

Tel: (011) 482 8595

mailto:[email protected]

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