Hrm Ppts 466 Slides

447
The environment for HR Finding & placing qualified workers Assessing & developing qualified workers Labour relations Emerging HR practices 1 CHAPTER 1: Foundation & challenges for HR CHAPTER 2: Information technology for HR CHAPTER 3: Managing diversity & regulatory challenges

Transcript of Hrm Ppts 466 Slides

Page 1: Hrm Ppts 466 Slides

The environment for HR

Finding & placing qualified workers

Assessing & developingqualified workers

Labour relations

Emerging HRpractices

1CHAPTER 1:

Foundation & challenges for HR

CHAPTER 2:

Information technology for HR

CHAPTER 3:

Managing diversity & regulatory challenges

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Chapter 1 - The foundation and challenges

of Human Resource

Management

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Chapter outcomes

• Evaluate the development of human resource management (HRM)

• Distinguish the strategic approach to human resources from the traditional approach to HRM

• Summarise the key HRM functions• Explain the roles of the HR Department• Identify eight challenges/issues facing HR

today• Explain the trends relevant to the growing

importance for HRM

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Human resources: Past & present

• Scientific management• Human relations• The HR approach

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Strategic HR

• Strategic management – making those decisions that define the overall mission & objectives of the organisation, determining the most effective utilisation of its resources and crafting and executing the strategy in ways that produce the intended results

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Strategic HR (continued)

• Business strategy – management’s game plan

• SHRM – address a wide variety of people issues relevant to business strategy

• Process is led & coordinated by top management

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Strategic vs traditional HRM

Dimensions Strategic HRM Traditional HRM• Planning

and strategy formulation

• Authority

• Scope

• Participates in formulating overall organisational strategic plan and aligning HR functions with company strategy

• Has high status and authority for top HR officer (e.g. vice president for HR)

• Is concerned with all managers and employees

• Is involved in operational planning only

• Has medium status and authority (e.g. HR director)

• Is concerned primarily with hourly, operational and clerical employees

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Strategic vs traditional HRM (continued)

Dimensions Strategic HRM Traditional HRM

• Decision making

• Integration

• Coordination

• Is involved in making strategic decisions

• Is fully integrated with other organisational functions e.g. marketing, finance, production

• Coordinates all HRM activities

• Makes operational decisions only

• Has moderate to small integration with other organisational functions

• Does not coordinate all HR functions

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A model of strategic HRM

Corporate strategy

External environment

Internal environment

Competition, government regulation, technology,

market trends, economic

Culture, structure, politics,

employee skills, past strategy

Employee separation

HR planning, design of jobs & work systems, what workers

do, what workers need,

how jobs interface with

others

HR strategy

Laws regulating

employment

HRIS

Labour relations

Compensation

Performance management

Training

Staffing

Business unit strategy

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HR functions

• Assigned exclusively to HR:– Compensation and benefits issues– AA & EE– JA programmes– Pre-employment testing– Attitude surveys

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HR activities (jointly with other departments)

• JA & JD• Recruitment and selection• Appraisal, training and development

and career management• Compensation and health• Labour relations• HRIS & problem-solving

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HR department roles

• Does the HR function affect the success of an organisation?

• HR policies• Critical policy issues

– Employee influence– Personnel flow– Reward system– Work systems

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Communication

• Downward – New employee

orientation– Bulletin boards– Communication

meetings– Newsletters– Employee

handbooks

• Upward– Suggestions

programmes– Complaint

procedures– Electronic mail– Attitude surveys– Open-door meetings

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HR department roles (continued)

• Advice & services• Control functions

– Collection & analysis of hiring, selection, placement & promotion

– Analysis of performance appraisal records

– Analysis of statistics on absenteeism, grievances and accidents

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The structure of the HR department

• Clerical, professional, managerial staff

• Responsibilities for HR functions– Does not only reside with HR– All managers at all levels share in the

responsibility

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Current issues & challenges

• Worker productivity• Quality improvement• Downsizing, delayering & decruiting• The changing workforce• Global economy• The impact of government• Quality of working life• Technology and training

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Challenges facing HR managers in 21st century

External macro

environment

External micro

environment

Critical people issues

Internal macro

environment

Internal micro

environment

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• HR career opportunities• Professionalisation of HRM

– Ethics and HRM

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Summary• Strategic HR activities address a broad range of issues

relevant to the successful formulation and implementation of company plans.

• The management of people has seen three distinct approaches since the turn of the last century: scientific management, human relations and the HR approach. The trend has been toward the HR approach, whereby two complementary goals are sought: increased organisational effectiveness and the satisfaction of individual employee needs. HR policies and programmes strive to achieve both goals.

• A number of critical issues face HR managers and administrators in South Africa today. Improving worker productivity through HR programmes, policies and techniques remains a challenge. Increasing the quality of working life (QWL) is a goal of many organisations, and programmes such as the redesign of jobs have been implemented to enhance QWL.

• Hiring and motivating today's changing workforce is a major HR challenge. Innovative HR programmes must meet the needs of a diverse labour force while enabling the company to compete successfully in a global economy.

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Summary• Although the HR programmes of different organisations will

vary, the HR departments of most organisations have these common responsibilities: job design and analysis; recruitment and selection; induction and internal staffing; appraisal, training and development; compensation; and labour relations.

• HR managers and administrators play a number of roles in achieving effective HR management. These include creating HR policies, offering advice to line managers, providing services (e.g. recruiting, training, and research), and controlling activities to ensure that employment legislation and HR policies are being followed. Also, it is usually HR's responsibility to design and maintain effective communication flows.

• Jobs in the HR department include clerical (support), professional and managerial positions.

• Free trade and globalisation are putting most firms in fiercely competitive markets where success depends on the quality of HR management.

• Work itself will be redefined in the future; more high-order thinking, constant learning and flexibility.

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Chapter 2 – Information

Technology for Human

Resources

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Chapter outcomes• Describe the Internet and identify the two

functional categories of information available on the Internet that are most useful to HR managers

• Define a human resource information system (HRIS)

• Discuss the structural design of an HRIS• Distinguish between the different types of HRISs• Discuss some of the modules of an HRIS database• Discuss the steps to be followed in the

development and implementation of an HRIS• Discuss five critical standards that must be met if

information provided by an HRIS is to be viewed as quality information

• List several things HR can do to foster data security throughout the organisation

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HR and the Internet

• Conversational resources• Reference sources• Intranets – organisational network that

operates over the Internet connecting people to people and people to knowledge and information

• Extranets – an Internet-linked network that allows employees access to information provided by external entities

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Human Resource Information System (HRIS)

• Nature of an HRIS

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Benefits of an HRIS

• Reduces errors• Strategic tool• Provide valuable information to

decision makers

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Components of an HRIS

• Hardware• Software• Data• Procedures and users

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Functional components of an HRIS

Employee information Software Reports

Input Transformation Output

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Structural design of HRISs

• Concentrated HRIS• Distributed HRIS• Independent HRIS• Hybrid approach

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Types of HRISs

• EDP (electronic data processing) – automated processing of routine information

• MIS (management information system) – integration and planning of the information system’s function

• DSS (decision support system) – decisions made at a higher level in the organisation

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Reasons for the slow introduction of computer-

based systems in HR departments

• Lack of support by top management• Satisfaction with the status quo• Defensiveness about revealing HR

operations• Lack of HRIS knowledge and skills

by HR managers

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Fully developed HRIS database

Succession planning

Skills inventory

HR planning & forecasting

Compensation administration

Future use• Benefits

• Health claimsHealth &

safety

Applicant tracking

Position control

Affirmative action

Training & development

Personnel module Corporate, Bio-

graphical, Histo-rical, Company/

HR policies

DATABASE

Career development & planning

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Applications of the HRIS database modules

• Applicant-tracking module• T&D module• Position control module• Wage & salary administration module• HRP module• Skills inventory module• Succession planning module• Basic personnel module

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Why do HRISs fail?

• Lack of management commitment & resources and inadequate numbers of personnel are made available

• Project team not assigned for the duration of the project

• Project is set up for failure (political intrigue, conflict & hidden agendas)

• Incorrect decisions are made – poorly written needs-analysis reports

• Key personnel are not included in the project team• Clients are not surveyed/interviewed to determine

their needs

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Development, implementation &

maintenance of an HRIS database

• Phase I – Needs analysis• Phase II – Design & development• Phase III – Implementation &

maintenance

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Securing the integrity of HR data

• Biggest risk• Keeping records unaltered• Controlling access• Security technology

– Information to be accessed– Type of access

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Summary

• Automation came late to the HR department. When it did, the system put in place resembled payroll more than personnel.

• The appearance of the personal computer (PC), perhaps more than any other single event, shifted information control away from the data processing/MIS department.

• The computer is becoming an integral part of the HR department. As a tool, it has moved beyond producing simple reports to helping HR managers make complex decisions. Human resource information systems (HRISs) are making this possible. As a whole, an HRIS creates more opportunities for the HR profession to influence the company.

• A typical HRIS is composed of a database, computer software and hardware.

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Summary• There has been an explosion of PC hardware

improvements and software offerings that greatly expand the possibilities of HRISs. Small employers can now benefit by getting the same results on PCs and minicomputers that could only be obtained using mainframes a few years ago.

• The choice between mainframes, minicomputers and PCs is complicated by the blurring of distinctions between them. Technological improvements are levelling the playing field between competitive technologies, and a likely scenario is that a medium-sized to larger employer will employ a combination of networked computer systems.

• Improvements in computer technology allow more tasks to be accomplished than ever before. Very sophisticated analyses can be performed on an ad hoc basis. Even PC programs allow complicated 'what if' questions to be answered.

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Summary• Modern HRISs place HR professionals in a better position to

play a more integral role in the strategic management of today's organisation. Computer technology, which first seemed to divide departments, now serves to bring them closer together as they share information, and more of it, to implement the business strategy.

• For an HRIS to be effective, users must be properly trained to use it, and it must be used by those whom it is intended to serve.

• HRIS concerns about he privacy of information that the database contains are very important. Proper care must be taken to restrict access to the system to those individuals who have a legitimate need for its information.

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Chapter 3 – Managing

diversity and regulatory challenges

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Chapter outcomes

• Discuss the composition of the South African workforce

• Define diversity management, and discuss why it is important

• Distinguish between the concepts affirmative action and diversity management

• Identify the primary principles of the South African Constitution and other related employment legislation regarding discrimination

• Discuss the two types of sexual harassment and how employers should respond to complaints

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India’s diverse population

• Ethnic groups• Women• Younger workers• Disabilities• Sexual/affectional orientation

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Managing diversity

• A planned systematic and comprehensive managerial process for developing an organisational environment in which all employees, with their similarities and differences, can contribute to the strategic and competitive advantage of the organisation, and where no‑one is excluded on the basis of factors unrelated to productivity

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Managing diversity

• What is diversity? Recognition of the groups of people who share such common traits– Primary dimensions– Secondary dimensions

• Stereotypes & prejudices– Stereotype – a fixed, distorted generalisation about

the members of a group: it is not generalisation– Prejudice – processing our stereotypes in such a

way to reinforce your own sense of superiority to members of that group

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Managing diversity (continued)

• Assimilation• Valuing diversity• Diversity programmes• Diversity awareness training

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Managing diversity (continued)

• Problems with diversity training• Language sensitivity• The multicultural organisation

– How can an organisation truly become a multicultural organisation?

Step 1

Unfreezing

Step 2

Moving

Step 3

Refreezing

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Response to diversity: Government legislation

• LRA 66 of 1995• The Constitution 108 of 1996• BCEA 75 of 1997• EEA 55 of 1998• Promotion of equality and prevention

of unfair discrimination act 4 of 2000

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Sexual harassment

• Defining sexual harassment• Quid pro quo harassment• Hostile work environment harassment• Measuring & researching sexual

harassment• Different forms of sexual harassment• HR’s responsibility

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Human Resource Management in South Africa 3/e by Grobler, Wärnich et al ISBN 1-84480-328-7

© 2006 Thomson Learning

Summary• The rapid diversification of the South African workforce is

changing the way in which managers succeed in administrating organisations. They must be able to harness the energies, talents and differences of a more diversified workforce. This requires an ability to recognise value and to manage individuals from diverse cultures and perspectives.

• Diversity‑awareness training and diversity programmes strive to increase employees' recognition of the value of everyone in the workplace. Some programmes, however, have caused problems among certain employees. To achieve diversity, HR managers must: (1) hire a diverse workforce; (2) enforce policies and laws on discrimination; and (3) learn to value and manage employees' differences.

• Affirmative action programmes by employers seek to determine areas of under use of women and disadvantaged group members. Employers establish goals and timetables to increase recruitment and selection of women and other groups in underutilised job categories.

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Summary• Government legislation has greatly affected

the selection process. Employers must ensure that their recruitment practices are nondiscriminatory and that each applicant is given an equal opportunity.

• Sexual harassment has developed into a complex but critical HR issue. Both quid pro quo and hostile environment forms of harassment are clearly prohibited. Employers realise that developing complaint investigation procedures and training supervisors to respond must be done before a complaint is filed to provide objectivity.

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The environment for HR

Finding & placing qualified workers

Assessing & developingqualified workers

Labour relations

Emerging HRpractices

2

CHAPTER 4:

HR planning, research & problem-solving

CHAPTER 5:

Job design and job analysis

CHAPTER 6:

Recruitment & selection

CHAPTER 7:

Induction, motivation & retention

CHAPTER 8:

Internal staffing & career management

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Chapter 4 – HR planning, research and

problem-solving

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Chapter outcomes

• Define strategic human resource planning (SHRP)• Understand the importance of SHRP to the

organisation• Identify the steps in the SHRP process• Identify the methods by which an organisation can

develop forecasts of anticipated personnel (supply and demand)

• List several common pitfalls in SHRP• Recognise the importance of the HR research

function and cite the individuals and institutions that conduct HR research

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Chapter outcomes (continued)

• Provide an overview of the major HR research methods

• Describe in detail the employee survey process - by far the most common form of HR research

• Recognise the importance of conducting - whenever possible - a cost-benefit analysis of HR activities and to provide an example using employee absenteeism

• Cite some of the major personnel/HR problems - absenteeism, turnover, job dissatisfaction and perceptions of unfairness

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Types of HR planning

• Input linkages• Decision inclusion linkages• Review and reaction linkages

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• Planning horizon• Strategy-linked HRP• Who is responsible for SHRP?

– Main responsibility lies with HR managers– HR managers must liaise with line management

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• Why is SHRP so important?• Elements of SHRP• Steps in the SHRP process

– Situation analysis– HR demand analysis– HR supply analysis– Strategy development

• Common pitfalls in SHRP

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HR research

• Types of research– Basic/Pure– Applied

• The researchers• HR research publications

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Research techniques

• Surveys– Job satisfaction survey– Specific-use questionnaire– Survey administration

• Exit interviews• Historical study• Controlled experiments

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• HRIS• Cost-benefit analysis• Problem-solving and analysis

– Absenteeism• Causes of absenteeism• Measuring absenteeism• Researching absenteeism• Reducing absenteeism

– Turnover

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• Problem-solving and analysis (continued)– Job dissatisfaction

Causes of job dissatisfactionMeasuring job dissatisfactionReducing job dissatisfaction

– Perceptions of fairness

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• Problem-solving and analysis (continued)– Perceptions of fairness

Procedural & distributive justiceMeasuring perceptions of fairnessResearching fairnessReducing unfairness

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Factors that affect turnover

Employee

turnover Demographic

factors

General economic

trends

Local labour market

Personal mobility

Job security

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Summary• SHRP is the process of getting the right number of

qualified people into the right job at the right time.• To be effective, the SHR plan must be derived from the

long-range plans of the organisation.• Strategy-linked HRP is based on a close working

relationship between HR staff and line managers.• Various methods for forecasting HR needs exist.• Sound HR research can significantly strengthen an

organisation’s HR programmes. Some specific uses of research include measurement and evaluation of current personnel policies, programmes and activities, and appraisal of proposed policies, programmes and activities.

• Research is generally classified as basic or applied. Most HR research is applied research to solve a particular problem or evaluate a proposed HR programme or activity.

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Summary• HR research is conducted by a variety of individuals and

public and private organisations, including government departments, private organisations, personnel associations, universities and individual business firms. In a business firm, HR research is usually conducted by a member of the personnel staff. Results are available in a number of journals and other publications.

• Techniques that are frequently used in HR research include surveys, specific-use questionnaires, interviews and historical studies. The controlled experiment has only limited use because of the difficulties in applying this technique in an organisational setting. The primary uses of surveys, questionnaires and interviews are to gather employees’ feelings and perceptions about areas of job satisfaction and dissatisfaction and to evaluate present and proposed HR programmes and policies.

• An important requirement for HR research is a valid HRIS. Without relevant information, it will not only be difficult to carry out meaningful research but the HR staff’s day-to-day effectiveness will also be limited.

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Summary• Whenever possible, HR professionals should

analyse HR problems and evaluate their programmes using a cost-benefit analysis. Some problems and activities that lend themselves to this form of analysis are turnover, absenteeism, attitudes and employee grievances.

• Although HR professionals and line managers must confront a wide array of people problems, a small, hard-core group of problems seem to permeate many organisations and consume an inordinate amount of the time of line and staff decision-makers. These problems typically include absenteeism, turnover, job dissatisfaction and unfairness. For problems such as these, decision-makers must, through the use of HR research, systematically analyse the extent of the problem in their organisations, determine where the problems exist and develop strategies to overcome them.

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Chapter 5 – Job design and

job analysis

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Chapter outcomes

• Discuss workflow analysis and business process re-engineering as approaches to organisational work.

• Understand how the design of a job affects employee motivation and performance.

• Show various methods of designing motivating jobs.

• Understand how motivating jobs can be created by building work teams.

• Become aware of radically new organisational programmes such as TQM.

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Chapter outcomes (continued)

• Understand the basic elements of a job analysis programme.

• Describe the end products of job analysis.• Identify the major methods of job analysis.• Discuss the future use and updating of job

analysis information.• Cite techniques useful in writing job

descriptions.• Recognise the major elements of job

descriptions and job specifications.

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Dividing work into jobs• Work – effort directed towards producing

and accomplishing results• Job – grouping of tasks, duties &

responsibilities that constitute the total work assignment

• As organisations change, these tasks, duties & responsibilities may also change over time

• When all jobs are added together they should = the amount of “work” that is to be completed

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Dividing work into jobs (continued)

• Workflow analysis – studies the way work moves through the organisation– Starts with examination of desired &

actual outputs (goods & services) into quantity & quality

– Activities (tasks & jobs) that lead to the outputs are evaluated to see if they can achieve the desired outputs

– Inputs (people, material, information, data, equipment etc) must be assessed to determine if these inputs make the outputs & activities more efficient

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Dividing work into jobs (continued)

• Re-engineering – generates the needed changes in the business processes– Purpose of business process re-

engineering improve such activities as product development, customer service & service delivery

– Require the use of work teams, training employees to do more than one job and reorganising operations, workflow and offices to simplify and speed up the work

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Designing jobs

• Major HR concerns: – Employee productivity– Job satisfaction

• Job design (JD) – determines how work is performed & greatly affects how an employee feels about a job, how much authority an employee has over the work, how much decision-making the employee performs on the job and how many tasks the employee should complete– JD determines working relationship with employees &

relationship among employees

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Designing jobs (continued)

– JD determines:• The nature of social relationships that

exist on a job• Relationships between the employee and

the work

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A framework for job design

FeedbackFeedback

FeedbackFeedback

Task Task AccomplishmentAccomplishment Productivity Productivity Effectiveness Effectiveness EfficiencyEfficiency

Worker reactionWorker reaction Satisfaction Satisfaction Absenteeism Absenteeism TurnoverTurnover

Job contentJob content

Task variety, autonomy, Task variety, autonomy, complexity, difficulty, complexity, difficulty, identityidentity

Job functionsJob functions

Responsibility, authority, Responsibility, authority, information flow, work information flow, work methods, co-ordination methods, co-ordination requirementsrequirements

RelationshipsRelationships

Dealing with others, Dealing with others, friendship opportunities, friendship opportunities, teamwork requirementsteamwork requirements

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Major approaches to job design

• Specialisation-intensive jobs– Job simplification (job specialisation)

• Motivation intensive jobs– Job rotation– Job enlargement– Job enrichment– Work teams

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Advantages - Major approaches to job design

Specialisation intensive Productivity of skilled

workers Training time required• Easy to replace workers• Few mental work errors• Greater manager control

of operations

Motivation intensive Productivity of

challenged workers Absenteeism Turnover Product quality• More employee ideas• Greater employee job

satisfaction

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New organisational approaches

• Total quality management (TQM)– Focuses on the quality of all the processes

that lead to the final product or service– To be successful it requires support of top

management & the belief that quality is a key part of every employee’s job

– Customer focus in the process of designing and improving quality

– Proper implementation requires a clear vision & support of top management and a focus on results NOT the process

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The office environment

• Work environment (space, workstations, light etc) affects employee morale, productivity and quality, absenteeism & turnover

• Creativity can happen anywhere• Retain the services of an architect or

design consultant

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Robotics• The use of robots to perform routine tasks• Industrial robots:

– Anthropomorphic (approximate the appearance and functions of humans)

– Nonanthropomorphic (machine-like and have limited functions)

• First-generation robots – performed simple jobs and had limited capabilities

• Second-generation robots – built with senses, vision or touch, making them more adaptable

• New robots - perform most of the drilling, shaping & bending tasks previously performed by robots

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Ergonomics• Taking into account the human factor in

designing the employee’s workstation• Relationship between the employees and

their workstations – machines used, lighting, noise, chairs etc, these can affect productivity

• IBM Employee handbook identifies the following:– Posture– Back– Hand– Environment

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Productivity measures• Quantity or volume produced• Accurate measure of productivity is vital

to organisational improvement effort• Gain competitive advantage• Strategies to improve productivity &

quality– Depends on employee seeing a link

between what they produce & what the company is attempting to achieve

– What will work for one company may not for another

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Productivity measures (continued)

• Organisations must be careful not to measure the wrong things or overlook those that are critical to success

• Merely implementing quality techniques, including employee empowerment and benchmarking will not produce benefits

• Productivity is the relationship between what is put into a piece of work (input) and what is yielded (output)

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Human Resource Management in South Africa 3/e by Grobler, Wärnich et al ISBN 1-84480-328-7

© 2006 Thomson Learning

Three major components of productivityEffectiveness

“Doing the right things”

Resource market

Market needs

Utilisation & efficiency

“Doing things right”

The production process

Labour, materials

and capital

Inputs

Conversion

Goods and

services

Outputs

Human Resource Management in South Africa 3/e by Grobler, Wärnich et al ISBN 1-84480-328-7

© 2006 Thomson Learning

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Three major components of productivity

• Utilisation – the extent to which we use resources

• Efficiency – rate of conversion while resources are being used

• Effectiveness – measured in terms of “doing the right things”

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Other JD issues

• Work schedules– Flexitime– Compressed workweeks

• Alternative physical work locations– Telecommuting

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The nature of job analysis (JA)

• Job analysis – systematically investigate the tasks, duties and responsibilities of the jobs within the organisation

• Investigates:– Levels of decision-making– Skills employees need to do a job adequately– Autonomy of the job– Mental effort required to perform the job– Machines operated, reports completed &

special financial/other responsibilities– Working conditions (levels of temperature,

light etc)

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The importance of JA

• New realities:– Organisational restructuring due to

downsizing– The need to motivate and reward

people– The impact of technology on jobs

throughout the organisation– Labour legislation pertaining to

employment equity and general discriminatory practices

– The implementation of teams

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Components of a job

• To understand a specific job and to be able to make comparisons among or between jobs, it is important that anyone analysing a job should know that it can be broken down into several components and arranged into a hierarchy of work activities

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Hierarchy of work activities

Job family

Occupation

Job

Position

Duty

Task

Element

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Programme implementation

1. Committee review2. Information collection

– General methods• Site observations• Work sampling• Interviews• Diaries• Questionnaires

– Specific methods• PAQ• FJA• CMQ• WPS

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Programme implementation

3. Information review4. Product completion

• Job description (JD) Uses of a JD:

Recruitment Interviewing Orientation Training Job evaluation Wage/salary surveys Performance appraisal Outplacement

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Programme implementation

4. Product completion (continued)• Job description (JD) (continued)

Elements of a JD: Job identification Job summary Job duties & responsibilities

• Job specification (JS)• Skills• Knowledge• Abilities

5. Future use & updating

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JA problems

• Employee fear• Need to update information

regularly• Job is held by only one or two

employees

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Human Resource Management in South Africa 3/e by Grobler, Wärnich et al ISBN 1-84480-328-7

© 2006 Thomson Learning

Summary• Understanding how people are motivated, that is, their

needs and goals, is critical to modern job design.• The task employees perform on the job and the variety,

difficulty level and autonomy of the job greatly affect job satisfaction and productivity.

• Employees, individually or in work teams, are being asked to take on greater responsibility for the design and control of their jobs. Simple, repetitious tasks are eliminated whenever possible, generally resulting in jobs that are more motivating and challenging. At the same time, some degree of job specialisation is necessary so that new employees can learn their jobs quickly and make fewer errors.

• Programmes such as job enrichment, self-managed work groups, TQM and re-engineering have resulted in redesigned jobs that were previously highly specialised and boring. There is also a trend toward multiskilling, whereby team members learn multiple tasks. Organisations are adopting work teams and giving them more freedom and responsibilities. Human Resource Management in South Africa 3/e

by Grobler, Wärnich et al ISBN 1-84480-328-7© 2006 Thomson Learning

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© 2006 Thomson Learning

Summary

• Total Quality Management (TQM) is one of the fastest-growing productivity improvement programmes in the world. It is based on the principle of commitment to continuous improvement and meeting customers' needs. It is largely a bottom-up change effort.

• Re-engineering is more radical. It involves more than tweaking old procedures; it is the redesign of business processes to achieve major gains in cost, service or time. The process begins with the simple but powerful question: If we could start from scratch, how would we do this? It is different from TQM because it comes from the top down.

• Technology plays an important role in modern job design. Robotics, ergonomics and the office environment can improve employee creativity, productivity and quality.

Human Resource Management in South Africa 3/e by Grobler, Wärnich et al ISBN 1-84480-328-7

© 2006 Thomson Learning

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© 2006 Thomson Learning

Summary• In addition to job design, organisations may choose to

implement programmes that increase workplace flexibility. These programmes tend to adopt a scheduling mix between employees' needs and the organisation's staffing requirements in ways that are consistent with the company's culture. Compressed work weeks, flexitime programmes and telecommuting are the most common approaches. Employees who desire greater control over work hours, who would like easier commuting or want a different lifestyle will be attracted to organisations that offer these types of programmes.

• A sound JA programme produces many benefits for an organisation. Information critical to employment and compensation is collected on a systematic basis. JDs, JSs and JEs can easily be produced from the JA data. Thus, critical HR practices such as hiring, wage determination and administrative record-keeping are assisted by job analysis.

• Information collection should always begin by conducting a background search. Internal sources can include previous job analyses, interviews with job incumbents and job supervisors, site observations by the analyst, questionnaires and diaries.

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Summary• There is a variety of job analysis methods, with each having certain

advantages, depending on the purpose, cost and time. The most popular method is the PAQ. A more complex method that demands computer analysis and that can handle thousands of jobs and people is the FJA.

• Job analysis is necessary to comply with the primary employment provisions. The process helps to determine essential functions and whether an individual can carry out the essential functions with or without reasonable accommodation.

• Job descriptions generally should contain a complete identification of the job and its location within the organisation. The section on duties and responsibilities should group all tasks into major functional categories, and each entry should begin with verbs. Job specifications should include all SKAs needed to perform the job, as well as other minimum qualifications.

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Chapter 6 – Recruitment &

selection

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Chapter outcomes

• Identify different ways that labour markets can be identified and approached

• Discuss the advantages and disadvantages of internal versus external recruiting

• Identify internal and external methods of recruiting

• List and discuss a number of hiring alternatives• Explain the HR department's role in the selection

process

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Chapter outcomes (continued)

• Diagram and discuss the sequence of a typical selection process

• Discuss several types of selection interviews and some key considerations when conducting these interviews

• Discuss the merits of references• Describe the various decision strategies for

selection • Explain how legal concerns impact on both

recruitment and selection

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Definitions

• Recruitment – the process of acquiring applicants who are available and qualified to fill positions in organisations

• Selection - the process of choosing from a group of applicants the individual best suited for a particular position

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Linking the role of recruitment and selection

External labour market

Selection activities

Recruitment activities

Organisation’s need for

additional labour

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The recruitment process

Environment

HRP

AA & EE

Specific requests

Satisfacto

ry po

ol

of recru

its

Manager’s comments

JA info

Job

op

enin

gs id

entified

Job

requ

iremen

ts

Internal sources

Internal methods

External sources

External methods

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Recruitment strategies in a diverse workforce

• Non-traditional recruitment strategies:– Disadvantaged training programmes– Learnerships and mentoring programmes– Career exhibitions– Telerecruiting– Diversity data banks

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Labour markets information

• Labour market sources– Part-time employees– Underemployed individuals– Pirating

• Operation of the labour market

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Recruitment sources

• Internal sources(Also discuss employee relocation, glass ceiling)

• External sources(also discuss Peter Principle)

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Advantages

• Internal recruitment Morale– Knowledge of

records– Chain effect of

promotion– Need to hire at

entry level– Usually faster, less

expensive

• External recruitment– Applicant pool is

bigger– New ideas, contact Internal infighting– Minimises Peter

Principle

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Disadvantages

• Internal recruitment– Unhealthy

competition– Inbreeding– Morale problem for

those not promoted– Strong management

development programme needed

• External recruitment– Destroy incentive of

employees to strive for promotion

– Individual’s ability to fit in is unknown

– Increased adjustment problem

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Methods of recruitment

• Internal methods– Job posting

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Methods of recruitment

• External methods– Direct applications– Employee referrals– University campus recruiting– Private employment agencies– Advertising– Direct mail– Radio, TV & the Internet

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Hiring alternatives

• Assigning overtime• Temporary help• Leasing employees

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Selection

• An HR responsibility• Selection and the law• Selection process

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© 2006 Thomson Learning

Framework for selection

Organisational goals

Job design

Job success criterion

Job specification

Selection instruments

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© 2006 Thomson Learning

Steps in the selection process

Initial screening

Application blank

Pre-employment testing

Interviews

Reference checks

Medical examination

Comply?

Yes/No

Yes/No

Yes/No

Yes/No

Yes/No

Yes/No

Reject

Job offer

Human Resource Management in South Africa 3/e by Grobler, Wärnich et al ISBN 1-84480-328-7

© 2006 Thomson Learning

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Human Resource Management in South Africa 3/e by Grobler, Wärnich et al ISBN 1-84480-328-7

© 2006 Thomson Learning

Initial screening (step 1)

• Removing obviously unqualified/undesired applicants

• Critical job specifications or requirements of EEA

• CV red flags• CV tracking system

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© 2006 Thomson Learning

Application blank (step 2)

• Information obtained is compared to JS to determine if there is a potential match

• Weighted application blank• CV method• Uses of application blank

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Pre-employment testing (step 3)

• Reliability of a test refers to consistency of measurement, usually across time but also across different raters

• Validity is the extent to which scores on a test or interview correspond to actual job performance

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Pre-employment testing (continued)

• Employment Equity Act Section 8 of Chapter II

• Managerial selection devices– Assessment centres

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Interviews (step 4)

• Purpose of the interview:(1)Does the applicant have the ability

to perform the job? (2)Will the applicant be motivated to

be successful? (3)Will the applicant match the needs

of the organisation?

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Interviews (continued)• Reliability & validity of interviews• Problems with interview• Structured & objective process• Effective interviewing:

– Setting – Documentation – Standardisation – Scoring– Reviewing specifications– Reviewing the application blank– Training the interviewer– Job-related questions

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Interviews (continued)

• Types of interviews– One-on-One– Panel

• Structured interview (directive/patterned)

• Realistic job preview

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Reference checks (step 5)• Methods (personal visits,

telephonic, mail)• Telephone – advantages:

– Immediate clarification– More information– Relatively little expense– Additional areas– A structured form

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Reference checks (continued)

• Personal references– Verify data received on application blank– Evaluate the quality of the personal

recommendation– Determine how well the person knows

the applicant• Previous employers

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Medical examination (step 6)

• After job offer has been made• Contingent to passing the medical

examination• EEA Section 7(1) and (2) & Section

50(4)– Can test if it can be justified

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The selection decision

• Compensatory selection – all applicants who pass the initial screening will be tested, interviewed etc

• Multiple hurdles selection – applicant needs to pass each hurdle (step)

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Record keeping

• EEA• LRA• Keep complete set of records of the

recruitment and selection process• Proof of non-discrimination• Keep documents such as advertisements,

contract with employment agencies etc

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Summary• Recruitment requires the HR specialist to acquire a pool

of available and qualified applicants. The recruiters can tap a variety of sources, including current employees, part-time workers, the unemployed and employees of other organisations who feel they are underemployed.

• Job-posting programmes are widely used to recruit applicants for positions. New voice-mail and electronic-mail systems offer several advantages over traditional bulletin boards.

• Effective recruitment advertising has increased because of the use of common marketing research tools. The need for advertising has increased because of dual-career couples and a general unwillingness to relocate on the part of professional and technical employees.

• Current employees are the most common source of applicants for higher-level positions. They offer the organisation several advantages over external applicants and give all employees the incentive of knowing that they may be promoted as a reward for hard work. Human Resource Management in South Africa 3/e

by Grobler, Wärnich et al ISBN 1-84480-328-7© 2006 Thomson Learning

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© 2006 Thomson Learning

Summary• Overtime, temporary help and leasing are alternative

sources of additional labour. Depending on the number of hours and skills needed, these recruitment sources may be more desirable than hiring permanent employees.

• University/school campus recruitment has become more competitive and employers more sophisticated in their methods. A poor economy should signal to students the need to sue innovative job leads.

• Pre-employment tests can be effective tools in the selection process. If carefully selected, validated and monitored, they can help select applicants who will match the position's requirements.

• Reference checking has increased in use but has been subjected to legal challenges. Employers can legally provide factual and accurate information, but they should be able to verify any job-related information they release.

Human Resource Management in South Africa 3/e by Grobler, Wärnich et al ISBN 1-84480-328-7

© 2006 Thomson Learning

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Human Resource Management in South Africa 3/e by Grobler, Wärnich et al ISBN 1-84480-328-7

© 2006 Thomson Learning

Chapter 7 – Induction,

motivation and retention

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Human Resource Management in South Africa 3/e by Grobler, Wärnich et al ISBN 1-84480-328-7

© 2006 Thomson Learning

Chapter outcomes

• Identify different ways that labour markets can be identified and approached

• Discuss the advantages and disadvantages of internal versus external recruiting

• Identify internal and external methods of recruiting

• List and discuss a number of hiring alternatives• Explain the HR department's role in the selection

process

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Human Resource Management in South Africa 3/e by Grobler, Wärnich et al ISBN 1-84480-328-7

© 2006 Thomson Learning

Chapter outcomes (continued)

• Diagram and discuss the sequence of a typical selection process

• Discuss several types of selection interviews and some key considerations when conducting these interviews

• Discuss the merits of references• Describe the various decision strategies for

selection • Explain how legal concerns impact on both

recruitment and selection

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Human Resource Management in South Africa 3/e by Grobler, Wärnich et al ISBN 1-84480-328-7

© 2006 Thomson Learning

Definition

• Induction/orientation/socialisation – the process of integrating the new employee into the organisation and acquainting him/her with the details and requirements of the job

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© 2006 Thomson Learning

Objectives of induction• Acquainting new employees with job procedures• Establishing relationships with co-workers,

including subordinates and supervisors• Creating a sense of belonging among employees

by showing them how their job fits into the overall organisation

• Acquainting new employees with the goals of the organisation

• Indicating to the employees the preferred means by which these goals should be attained

• Identifying the basic responsibilities of the job• Indicating the required behaviour patterns for

effective job performance

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Model for induction

• Phase I – Anticipatory socialisation– Realism about the organisation – Realism about the job – Congruence of skills and abilities – Congruence of needs and values

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Model for induction (continued)

• Phase II – Encounter– Management of outside-life conflicts– Management of intergroup role conflicts– Role definition– Initiation to the task– Initiation to the group

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Model for induction (continued)

• Phase III – Change and acquisition– Resolution of role demands– Task mastery– Adjustment to group norms and

values

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Benefits of induction Job satisfaction Labour turnover Commitment to values and goals Performance as a result of faster learning times Costly and time-consuming mistakes Absenteeism Customer service through heightened

productivity Manager/subordinate relationships Understanding of company policies, goals and

procedures

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Reasons for the lack of effective induction

• The supervisors responsible for the task either lack the time or ability to fulfil this obligation

• Organisations do not regard anxiety and stress, owing to insecurity and unfulfilled expectations, as a primary cause of labour turnover among new employees. They therefore consider induction to reduce anxiety and stress as unnecessary

• Organisations regard effective recruitment, selection, training and development as substitutes for induction

• Where induction programmes are introduced, the key components are lacking

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© 2006 Thomson Learning

Reasons for the lack of effective induction

(continued)• Induction is aimed at inducing new employees to

adhere to organisational practices and procedures while little attention is paid to instilling loyalty and commitment to the organisation

• Employees who are transferred or promoted within the organisation are not subjected to induction programmes

• Induction programmes are not followed up, i.e. the success of these programmes is not determined

• Induction programmes often concentrate on promoting the image of the organisation

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Responsibility for induction• The supervisor - ensures that the employees in the

section receive all the information necessary to enable them to function as efficiently and effectively as possible (introduction of new employees to co-workers, explaining job duties and responsibilities as well as policies, procedures, rules and regulations and also taking the employees on a familiarisation tour of the workplace)

• The head of department - meets all new employees and briefly explains to them the role and responsibilities of the particular department within the organisation

• The human resources department - the employment contract, compensation, loan facilities, medical schemes, pension plans and the development and monitoring of the success of the induction programme

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Responsibility for induction (continued)

• A 'mentor' or 'buddy‘ - responsible for assisting the new employee regarding how to operate basic equipment such as photocopiers, telephones and faxes and how to dispose of the mail. He/she may also demonstrate how to log on to computers, generate passwords and use basic programs (junior member of the workgroup).

• The shop steward/staff representative - explains issues such as grievance and disciplinary procedures

• New employees - responsible for the completion of induction evaluation forms. They must also provide informal feedback to the HR department and supervisors if requested

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Who should be given induction training?

• New employees - do not assume that new employees would immediately know what it has taken others months or years to learn

• Transferred/promoted employees - current employees who have been transferred or promoted within the organisation should receive induction training (especially if it involves a significant change of environment)

• All current employees - reinduction programme involving all current employees should take place periodically (important if significant changes in organisational policies or structures have taken place eg. if one organisation is purchased by another)

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Scope of induction training

• Two levels:– General organisational induction – affect

all employees in the organisation– Specific departmental induction – tailored

to the new employee’s specific department

• Employee handbook – review regularly, guard against too much detail, mention topics briefly, could also be on website

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Approaches in induction

• 3 basic approaches:– Verbal– Written– Audiovisual

Formal induction Informal induction

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How long should the induction training be?

• Avoid cramming all induction (detailed information) into one long session

• Sessions should not be longer than 2 hours

• Period of induction should be linked to time it takes to become effective

• Follow-up sessions are important after ± 2 months

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Planning an induction programme

• Developing induction programme takes 3-6 months

• Key planning considerations:– Induction policy - properly formulated

induction policy, drawn up jointly by management & employees adopted by top management

– Budget - adequate budget should be made available for this purpose

– Other planning considerations - A number of other aspects must also be considered:

• Time needed to plan & implement

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Planning an induction programme (continued)

– Other planning considerations - A number of other aspects must also be considered: (continued)

• Programme goals, topics to be included, methods of organising and presenting them, duration of induction sessions

• Materials, facilities and personnel to be used• General organisation topics versus department

and job topics to be covered• Qualifications and training needs of human

resources personnel, line managers and supervisors

• Programme flexibility to accommodate employee differences in education, intelligence and work experience

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Designing an induction programme

• Different groups in the organisation require different induction programmes (eg. management & non-management)

• Design programme to include all the information the newcomer will “need to know” and the “nice to know” as well

• “Need to know” – information the newcomer requires as soon as possible to fit in & be effective

• “Nice to know” – can be given over a period of time as they settle in

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Designing an induction programme (continued)

• Categories of information:– Job-related information - describes

what the job entails and how it is done

– General information - includes a great deal of information, such as fringe benefits, safety and accident prevention and physical facilities

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Implementing the induction programme

• Steps:– Pre-employment preparation - process begins during

recruitment and selection stage, first impressions are formed at this stage

– Pre-employment information - formal letter of appointment (containing: a JD, starting salary, salary progression, grade of job, basic terms & conditions of employment, location of job and probationary period, indicate whether job offer is conditional upon satisfactory references/medical checks)

– 1st day instructions - job accepted in writing, the newcomer should be sent instructions for the first day. Copy of letter sent to supervisor. Should include:

• Office number & locality of the building to report for duty• Name & job title of person to whom the employee must

report• Date to report & starting time• What they should bring when reporting for duty

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Implementing the induction programme (continued)

• Steps: (continued)– The welcome pack - contains more information on the

organisation, could also be sent. Following items can be included:

• A letter of welcome from the managing director of the organisation

• Organisational charts• Details of rules and conditions• A letter of welcome from the recognised trade union• Map of the facility• Telephone numbers and locations of key personnel and

operations• Detailed outline of emergency and accident-prevention

procedures– Organising the work - duties that the new employee will

perform must be discussed by the supervisor and his employees. The new employee must be given some meaningful work on the first day

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Implementing the induction programme (continued)

• Steps: (continued)– Briefing colleagues - other staff should be briefed about the

new employee (should be informed of the name of the newcomer, the post to which he or she has been appointed, his or her background, job location and the date of commencement of duties)

– Administrative arrangements - office of newcomer must be cleaned and made ready for arrival

– Training – consider any training needed by newcomer– The first day induction – should be short, the newcomer

should start rather late and leave earlier than normal– On arrival - when a new employee arrives at the workplace

for the first time it is important that the person who meets him/her has prior knowledge of his or her arrival

– Basic information - newcomer may first be introduced to a senior manager/ proceed directly to the HR department (banking details, new address/telephone number will be obtained etc)

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Implementing the induction programme (continued)

• Steps: (continued)– The initial discussion - paperwork completed, time

to meet the department head (initial conversation, cover mutual expectations & give an idea of what to expect during the 1st day & week)

– Building the relationship - department head should establish rapport (built on mutual respect)

– Immediate supervisor - will introduce the newcomer to fellow workers & also conduct a tour of the workplace (briefly discuss the JD, standards & assessment) inform when and where required to attend induction lectures/sessions

– The buddy or mentor - should be about the same age and grade as newcomer (will assist regarding questions as they arise, temporary arrangement)

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Evaluation of the induction programme

• Benefits:– To ensure that the organisation is

spending its money wisely and achieving positive results

– That the methods used to assist new employees to integrate and become effective workers in the organisation are the most suitable

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Evaluation of the induction programme

• Use questionnaires, surveys, exit interviews and course evaluation forms, qualitative information can also be gathered:– Who should be involved? Depending

on the type of information to be collected, the HR department will be directly involved

– What will be measured? Various elements will need to be measured over different time scales

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Motivation

• Completing the induction process does not guarantee satisfactory employee performance

• Many factors affect performance abilities, efforts expended & continued organisational support received

• HR should analyse and address these areas

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Motivation

• Definition:– The force that energises behaviour,

gives direction to behaviour and underlies the tendency to persist even in the face of obstacles

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Motivation

• Motivators are specific to an individual• A manager should attempt to meet the

employee’s important needs/basic requirements for worker productivity

• Increased diversity of workforce

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Maslow’s hierarchy of needs

Physical needs

Security needs

Social needs

Self-esteem needs

Self-actualisation needs

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Alderfer’s ERG theory

• Closely related to Maslow’s hierarchy of needs

• ERG (existence, relatedness and growth)

• Differences do exist, however • Alderfer proposes that, when one need

is frustrated, we simply concentrate on the others

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Achievement motivation

• David McClelland • 3 needs are emphasised: achievement,

affiliation & power – The need to achieve (N ach) -

preoccupation to focus on goals, improving performance and tangible results (associated with self-discipline, schedule-keeping, accepting responsibility and becoming success-oriented, often associated with lack of group orientation)

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Achievement motivation (continued)

– The need for affiliation (N aff) - motivates people to make friends, to become members of groups and to associate with others (focus on human companionship, interpersonal relations & concern for others)

– The need for power (N pow) - desire to obtain & exercise control over others, resources and the environment

• N aff + N pow strong individual demonstrates a propensity for either totalitarian methods of control or more democratic methods

• N Ach + N pow different types of assertive behaviours and management styles

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Goal setting

• Edwin Locke• Job performance can be increased

through goal setting - when individuals are given measurable goals rather than vague performance standards

• Best-known expression of goal setting theory is management by objectives (MBO)

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Goal setting (continued)

• Goal-setting strategies involve a systematic process manager & subordinate discuss and agree on a set of jointly determined goals

• Present a case for or against each goal • Final result - a set of goals that is in keeping with

the overall goals of the organisation • Feedback on progress is periodically supplied,

enabling the worker to make necessary corrections

• Link between performance & rewards is clear (emphasis on what is achieved rather than on how)

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Positive reinforcement• The practice of giving valued rewards to someone

who has just engaged in a desired behaviour• Law of effect - behaviour that leads to a pleasant

response will be repeated, whereas behaviour that results in an unpleasant response tends not to be repeated

• Reinforcement is at the heart of merit increases • For reinforcement to continue to affect employees’

future behaviour manager must make certain that rewards are meaningful and desired by each employee

• Manager must tailor the reward, whether it be recognition, pay or changing job requirements, to fit the employee

• Manager must be sure that employees realise that rewards are contingent on correct behaviour.

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Herzberg’s two-factor theory

• Frederick Herzberg • Motivator-hygiene factors - applied to

the workplace and job design • Herzberg noticed that people identified

different things as sources of work dissatisfaction (hygiene factors) from those that were sources of satisfaction (motivators)

• Satisfaction and dissatisfaction not simple opposites

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Herzberg’s two-factor theory (continued)

Hygiene needs

Motivator needs

- job environ-

ment

creates demand for

+ job opportu-

nities

allow workers to

achieve

Hygiene factors: More money, better supervision, good working conditions etc

Motivators: Achievement, responsibility, growth, work itself, recognition

Level of job dissatis-faction

Level of job performance

Level of job satisfaction

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Individual/organisational relationships

• The psychological contract - entails beliefs about what employees believe they are entitled to receive because they perceive their employer promised to provide these things– Unwritten

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Individual/organisational relationships (continued)

• The psychological contract– Violations of the psychological contract– Changing of the psychological contract– Practical implications for companies

regarding psychological contracts

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Retention of human resources

• Compensation & benefits• Organisational environment• Work/development environment• Work-life balance

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Summary

• Starting a new job is not easy. It is important that careful attention be paid to the introduction of the new employee to the organisation, his or her co-workers and his or her job. This is also applicable to transferred and promoted employees. The method to achieve this is by means of a well-designed induction programme.

• To implement the programme successfully requires the joint effort of the HR department, the line managers and the existing employees.

• While the first day of the new employee at the organisation is critical, there are limits to what can be achieved and the induction will often have to be spread over a longer period.

• When planning the induction programme, it is important to note not only the content of the programme but also the best way of handling it. The programme will also have to be monitored regularly to correct any problems and to see whether any redesign is necessary.

• Successful induction will lead to better-motivated employees and higher productivity within the organisation.

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Summary• After induction has been completed, it is important

that the employee receives proper training in order to improve his or her skills within the job environment.

• Individual performance components include individual ability, effort expended and organisational support.

• Motivation deals with the needs and desires of human behaviour. Various theories of motivation have been developed.

• A psychological contract contains the unwritten expectations that employees and employers have about the nature of their work relationship. Those contracts are changing along with employee loyalty to their employers.

• Retention of employees is a major focus of HR efforts in organisations. The determinants of retention can be broadly divided into four categories.

Human Resource Management in South Africa 3/e by Grobler, Wärnich et al ISBN 1-84480-328-7

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Human Resource Management in South Africa 3/e by Grobler, Wärnich et al ISBN 1-84480-328-7

© 2006 Thomson Learning

Chapter 8 – Internal staffing

and career management

issues

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Human Resource Management in South Africa 3/e by Grobler, Wärnich et al ISBN 1-84480-328-7

© 2006 Thomson Learning

Chapter outcomes• Understand the reasons for the design of a proper

internal staffing programme• Identify the factors that influence internal staffing

decisions• Name the advantages of internal staffing• Identify the various types of internal staffing

strategies• Discuss the guidelines for the selection of the best

type of internal staffing strategy• Describe the elements necessary for a successful

career management function• Examine the problems that typically confront

employees when seeking to advance their careers• Define a plateaued employee

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© 2006 Thomson Learning

Reasons underlying the design of a proper internal staffing

programme• Employee dissatisfaction• Increasing concerns with job security• Changing employee attitudes and

concerns• Employment equity issues• Labour union presence

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Factors influencing staffing decisions

• Organisation growth• Reorganisation• General economic trends and other

issues• Attrition

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© 2006 Thomson Learning

Advantages of internal staffing• Maintain closer control over the skills & work habits

acquired by their existing employees• Gradually prepare employees to fill complicated or

critical positions without overburdening their capacity to learn

• Employers do not have to spend time orienting the new incumbents to the business environment or to standardise operating procedures

• Have more detailed information about the abilities, aptitudes and work habits of internal employees

• Employee satisfaction and commitment• Fulfil hiring goals and timetables specified in

employment equity actions• Employees placed in the best interests of both the

organisation and the individual.• Can contribute to the organisation's bottom line

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© 2006 Thomson Learning

Requirements for effective internal staffing

• Pay close attention to identifying the current employee skill levels and development needs

• Employees must be flexible to be able to move easily within the organisation and thus be better utilised

• Multiskilling - broadening of employee's skills beyond the bounds of their current jobs, must be available

• Ensure that internal equity exists in matters such as compensation, promotion and access to training

• HRIS should exist• Involvement of top-level managers & line managers

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© 2006 Thomson Learning

Types of internal staffing strategies

• Categories:– Pure selection strategy– Vocational guidance strategy– Compromise staffing strategy

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Human Resource Management in South Africa 3/e by Grobler, Wärnich et al ISBN 1-84480-328-7

© 2006 Thomson Learning

• Selection ratio• Performance costs• Type of job

Guidelines for the selection of the most effective internal

staffing strategy

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© 2006 Thomson Learning

Various approaches to internal staffing

• 2 objectives:– Organisational effectiveness– Employee satisfaction and commitment

• Moves:– Promotion– Demotion– Transfer– Lay-off– Down-sizing/retrenchment

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© 2006 Thomson Learning

Various approaches to internal staffing (continued)

• Moves: (continued)– Resignations, quits & dismissals– Retirement– Cost of employee separations

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Human Resource Management in South Africa 3/e by Grobler, Wärnich et al ISBN 1-84480-328-7

© 2006 Thomson Learning

Career management

• Career - sequence of jobs held during a person’s working life

• Career management - process of designing and implementing goals, plans and strategies that enable HR professionals and managers to satisfy workforce needs and allow individuals to achieve their career objectives

• Individual career planning - process whereby each employee personally plans career goals

• Organisational career planning - process whereby management plans career goals for employees

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Human Resource Management in South Africa 3/e by Grobler, Wärnich et al ISBN 1-84480-328-7

© 2006 Thomson Learning

Benefits to the organisation

• Staffing inventories • Staffing from within• Solving staffing problems• Satisfying employee needs• Enhanced motivation• Employment equity

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Human Resource Management in South Africa 3/e by Grobler, Wärnich et al ISBN 1-84480-328-7

© 2006 Thomson Learning

Changing face of career management

• Traditional path of career progression upwards has gone

• Increased competition, cost competitiveness and information technology have all resulted in the de-manning and de-layering of organisational structures

• Organisations have removed the rungs of the career ladder and instead are concentrating on the optimal use of their human resources

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Human Resource Management in South Africa 3/e by Grobler, Wärnich et al ISBN 1-84480-328-7

© 2006 Thomson Learning

Changing face of career management

• Differences between levels in organisations with flatter structures are far greater, there is a qualitative leap rather than a quantitative step involved

• Moves sideways rather than upwards are more frequent

• The concept of a series of positions to an ultimate top position has been replaced by the individual’s acquisition of competencies which enable him/her to manage change at the next level of responsibility

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Career management

Organisation’s needs

Individual’s needs

Personal / Professional

Strategic / Operational

Human Resource Management in South Africa 3/e by Grobler, Wärnich et al ISBN 1-84480-328-7

© 2006 Thomson Learning

Balancing individual and organisational needs

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Successful career management

• Organisational career planning• Individual career planning• Integrating plans• Implementing plans• Evaluation of career plans

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Other issues

• Plateaued employee• Dual-career couples

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Summary• The movement of employees from one post to another

within an organisation is known as internal staffing. These movements are usually necessitated by growth factors, which may be either positive or negative in nature, or by employee losses from a variety of causes.

• The movement of employees can be broadly classified into four categories: up, down, across and out of the organisation.

• In order to be effective, the manager should regularly review policies and programmes regarding internal staffing. Thus, in addition to possessing mechanisms for identifying where vacancies are likely to occur, and for the development of employees to fill them, all organisations should have established practical ways of handling all promotions, transfers, demotions and retrenchments, as well as retirements.

• There should be a tried and satisfactory method of identifying the most suitable candidates, deciding among a variety of candidates, easing transitions across jobs and monitoring all these activities from an organisational and individual perspective.

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Summary• There are different types of strategy that can be used to

assist with internal staffing decisions; these are a pure selection strategy, a vocational guidance strategy and a compromise strategy.

• Career management involves integration of organisational staffing needs with the career goals and aspirations of individuals. To be effective, career management should be formal and planned, should receive support from top management and should be recognised as a process that involves coordination of a number of separate yet interrelated HR tools and techniques.

• Once organisational HR staffing needs and personal career goals have been defined and integrated, a number of personnel practices can start a career in motion. These include job posting, PA and T & D activities.

• Dual-career couples should be prepared to deal with problems that include potential conflicts over career paths and the division of family responsibilities. Assistance from organisations may include dual-career audits, special recruiting techniques and special policies for dual-career couples.

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The environment for HR

Finding & placing qualified workers

Assessing & developingqualified workers

Labour relations

Emerging HRpractices

3

CHAPTER 9:

Performance management & appraisal

CHAPTER 10:

Training & development

CHAPTER 11:

Managing compensation & benefits

CHAPTER 12:

Health & safety

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Chapter 9 –Performance management and appraisal

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Chapter outcomes• Explain the evaluative and developmental

objectives of performance appraisal• Describe the major performance appraisal

methods• Design and evaluate a programme of

performance appraisal• Discuss who should perform the appraisal• Provide examples of several rater errors• Discuss several concerns about appraisal

feedback interviews

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Definitions• Performance appraisal (PA) - ongoing

process of evaluating and managing both the behaviour and outcomes in the workplace

• Performance management (PM) - a broader term than performance appraisal, became popular in the 1980s as total quality management (TQM) programmes emphasised using all the management tools, including performance appraisal, to ensure achievement of performance goals

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Organisational performance management cycle

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performance management dilemma

• Insufficient line management support for performance management

• Periodic and formal performance reviews: – Lack of follow-up of performance reviews – Overemphasis on the appraisal aspect at

the expense of development– Inadequate performance information and

inadequately maintained objectivity

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Performance criteria• 3 types of performance criterion:

– Trait-based criteria - focus on the personal characteristics of an employee (eg. loyalty, dependability, creativity and communication skills, focus on what a person is, not on what he or she does or accomplishes on the job)

– Behaviour-based criteria - specific behaviours that lead to job success (eg. instead of ranking leadership ability (a trait), the rater is asked to assess whether an employee exhibits certain behaviours)

– Results or outcome-based criteria - focus on what was accomplished or produced rather than how it was accomplished or produced

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PA objectives

• Compensation decisions

• Staffing decisions

• Evaluate selection system

• Performance feedback

• Direction for future performance

• Identify T&D needs

EVALUATE DEVELOPMENTAL

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The appraisal process

• Steps in developing a PA system:– Determine performance requirements– Choose an appropriate appraisal method– Train supervisors– Discuss methods with employees– Appraise according to job standards– Discuss appraisal with employees– Determine future performance goals

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Legal considerations• Written appraisals conducted regularly• Supervisors should be trained• Apply consistent, explicit and objective• Audit system• Problem areas detailed & documented• Problems identified establish things for

improvement• Give employee clear opportunity to respond• Employer should be able to prove that

employee received the appraisal• Circulation of PA should be restricted• Check past PAs

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Methods for appraising performance

Category rating

• Graphic rating scale

• Non graphic rating scale

• Checklist of critical incidents

Comparative

• Ranking

• Force distribution

• Paired comparison

Behavioural/objective

• Behavioural rating approaches

• MBO

Narrative

• Critical incidents

• Essay

PA methods

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MBO process

MBO

Goal setting

Periodic review

Self control

Action planning

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Common rater errors

• Halo effect• Central tendency• Leniency• Rater bias• Strictness• Recency/primary effect• Overall ratings

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Who should do the rating?

• Supervisors• Peer evaluations• Customer/client evaluations• Self-ratings• Reverse appraisals• Team portfolio appraisals

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Assessment centres• Many of the employee performance appraisal

systems focus on the employee’s past performance

• Using the assessment centre method it is also possible to, at the same time, attempt to assess a candidate’s potential for future advancement

• Assessment centres are used increasingly to:– Identify employees who have higher level

management potential;– Select first-line supervisors; and– Determine employee development needs.

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Monitoring employees on the job

• Possible to evaluate employee performance electronically

• Video surveillance is used to discourage theft and other rule violations

• Telephone surveillance of service representatives has been used for a long time to monitor the timing and content of customer contacts

• Computer programs can monitor keystrokes to track employee performance, eavesdrop on employee electronic mail (e-mail) and record who accesses which databases at what times

• Monitoring employees by computer or any other method is open to serious invasion and privacy issues

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Systems approach to effective Systems approach to effective PAsPAs

Effective appraisal support

Effective manager-rating

practices

Effective system design

Top management

support

Appraisal outcome

linked ratings

Ongoing systems review

Effective performance planning actv

Ongoing appraisal & coaching

Motivate raters to conduct effective

appraisals

Clear appraisal purpose

Employee/ma-nager input in system design

Properly trained

personnel

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The appraisal interview

• Problems with the appraisal interview– Playing God– Inability to give criticism– Personality biases– Inability to give effective feedback

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The appraisal interview (continued)

• Interview format– Prepare for the interview - important in

a successful appraisal interview. Supervisor (or other rater) should gather and review all relevant performance records (these include all data regarding work output and quality, absenteeism and tardiness etc.)

– State the purpose of the interview. The employee should be told if the interview will cover compensation and staffing decisions (merit increase, promotion, transfer, etc.), employee development or both

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The appraisal interview (continued)

• Interview format (continued)– Indicate specific areas of good performance

and areas that need improvement - begin the discussion by highlighting areas of good performance. Appreciation and recognition for good work are important parts of the appraisal interview. Areas of performance in need of improvement are discussed next

– Invite participation. Throughout the employee should be invited to comment. This enables the employee to let off steam and tell why certain performance problems exist. It is also an opportune time to clear up any misunderstandings that may still exist about job expectations

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The appraisal interview (continued)

• Interview format (continued)– Focus on development - setting up the

employee’s development programme. Employees are much more likely to be committed to developmental programmes if they agree with the supervisor that the programme is necessary to improve job skills and abilities. Employees who feel that no performance problems exist or that a programme of development is unnecessary to promote career goals will be uncommitted to development. Supervisors must clearly show their employees how development is related to job success

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The appraisal interview (continued)

• Problem-solving interviews– Objectives– Psychological assumptions– Role, attitude & skills of interviewer– Employee’s motivation for change– Possible gains– Risks of interviewer– Probable results

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Human Resource Management in South Africa 3/e by Grobler, Wärnich et al ISBN 1-84480-328-7

© 2006 Thomson Learning

Summary• Employees generally dislike and fear PA, and even

supervisors find the process stressful. Employees tend to be satisfied with the process if the appraisal interview is constructive and if the chosen method is job-related and provides specific direction for future performance.

• The PA process generally has two goals: (1) the evaluation of employees' past performance for salary and selection decisions; and (2) the improvement of future performance as a part of career development. The evaluative objective tends to dominate specific organisational uses of appraisal information.

• The appraisal process should contain certain features. A standardised process should evaluate all employees in a consistent manner. Job analysis should be used in the content development to ensure job-relatedness. Supervisors should be trained in the process and should provide employees with direct written feedback from the process.

• Certain rater errors, such as supervisor bias, halo effect or recency, can only be minimised; others, such as leniency or central tendency, can be eliminated. But forms that eliminate these problems generally contain their own problems. Each appraisal method has unique advantages and disadvantages but rating scales continue to be used most often by HR managers.

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Summary• The appraisal interview is the most important element in the

PA process. Supervisors who dislike 'playing God' find it hard to act simultaneously as judge and friend. Supervisors need to be trained for and give adequate attention to the appraisal interview. Employee preparation can also help them to provide useful input into the discussion, as well as to be psychologically prepared for any possible negative feedback.

• Organisations can benefit by periodically evaluating their appraisal programme. The HR department can provide feedback to supervisors about the quality of their appraisals and check for rater problems, such as the halo effect or leniency. Multiple raters - such as peers, customers and team ratings - may be used as information added to supervisor's ratings.

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Chapter 10 – Training &

development

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Chapter outcomes• Identify the major purposes of training and development

(T&D)• Recognise the differences and similarities between

employee training and management development• Explain how to conduct a needs assessment, including

performing organisational, job/task and individual analysis

• Know how to design and deliver training• Identify the many on-the-job and away-from-the-job T&D

techniques• Understand how to evaluate a training programme• Explain the importance of the South African

Qualifications Authority Act, No. 58 of 1995, the Skills Development Act, No. 97 of 1998 and the Skills Development Levies Act, No. 9 of 1999 towards addressing the serious skills shortages in South Africa

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Training vs development

• Employee education – basic skills training programmes

• Specific training – employees gain information and skills tailored specifically to their own workplace

• Training – acquisition of technically orientated skills by non-management personnel

• Management development – associated with methods and activities designed to enhance the skills of managers/future managers

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Training vs development (continued)

• Training– Technical skills– Non-management – Short run

• Development– Broad range of

skills– Management– Long run– Continually

throughout career

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Shift

• Training and developmentTO

• Learning and development

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Traditional managerial skills

Top managemen

t

Middle managemen

t

Technical Conceptual Skills Skills

Human relations

skills

First-line managemen

t

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Skills

• Technical skills include knowledge of equipment, work methods and work technologies

• Conceptual skill is the ability to view the organisation as a whole and to coordinate and integrate a wide array of organisational functions, activities, goals and purposes

• Human relations skills. One popular definition of a manager is “one who accomplishes his or her work through others”

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Purpose of T&D• Improve performance - employees who perform

unsatisfactorily because of a deficiency in skills are prime candidates for training

• Update employees’ skills - managers in all areas must always be aware of technological advances that will make their organisations function more effectively

• Avoid managerial obsolescence - rapidly changing technical, legal and social environments have affected the way managers perform their jobs, and management personnel who fail to adapt to these changes become obsolete and ineffective

• Solve organisational problems - managers are expected to attain high goals in spite of personal conflicts, vague policies and standards, scheduling delays, inventory shortages, high levels of absenteeism and turnover, labour-management disputes and a restrictive legal environment

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Purpose of T&D

• Orient new employees - new employees form their initial impressions of the organisation and its managers. These impressions may range from very favourable to very unfavourable, and may influence their job satisfaction and productivity

• Prepare for promotion and managerial succession - training enables an employee to acquire the skills needed for a promotion

• Satisfy personal growth needs - T&D can play a dual role by providing activities that result in both greater organisational effectiveness and increased personal growth for all employees

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T&D priorities in the 21st century

• Quality improvement programmes• Technological change-related

programmes• Customer service T&D

programmes

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Strategic trainingStage 1:

Strategise

Stage 2:

Plan

Stage 3:

Organise

Stage 4:

Justify

HR and training managers work with management to determine the strategic linkage between training and the

strategic business plan

Training objectives and expectations of training should be identified and specific measurable learning

objectives created

Decide how training will occur and how much resources will be needed

Evaluation of the process to determine to what extent the goals set in stage 1 have been met

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Systems approach to T&D

• Phase I – Needs assessment• Phase II – Design & delivery of T&D• Phase III - Evaluation

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Systems approach to T&D (continued)

• Phase I – Needs assessment– Organisational analysis– Operations analysis– Individual analysis

• Advisory committees, Assessment centres, Attitude survey, Group discussions, Questionnaires, Skills test, Observations of behaviour, Performance appraisals, Performance documents, Exit interviews

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Systems approach to T&D (continued)

• Phase I – Needs analysis– Special case of T&D for managers– Management succession chart– Selecting needs-assessment

techniques– T&D objectives

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Systems approach to T&D (continued)

• Phase II – Design & delivery of T&D– Training design principles of learning

• Motivation• Participation• Feedback• Organisation• Repetition• Application

– Training delivery– On-the-job training (OJT)– Away-from-the-job training– A T&D plan & implementation

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Systems approach to T&D (continued)

• Phase II – Design & delivery of T&D– OJT

• Enlarged & enriched job responsibilities• Job instruction method• Coaching• Mentoring• Committee assignments

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Systems approach to T&D (continued)

• Phase II – Design & delivery of T&D– Away-from-the-job

• In-house programmes• Off-site programmes

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Systems approach to T&D (continued)

• Phase II – Design & delivery of T&D– Away-from-the-job

• Lecture• Conference/discussion• Vestibule/simulation• Technology-based systems• Case study• Role-playing• Management games• In-basket exercise• Assessment centre• Membership of professional organisations• Wilderness training• Behaviour modelling• Sensitivity training• Packages of T&D programmes

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Systems approach to T&D (continued)

• Phase III – Evaluation– Levels of evaluation:

• How did participants react?• What did participants learn?• How did participants’ behaviour change?• What organisational goals were affected?

– Applying evaluation strategies

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Successful T&D programmes for managers

• Performance appraisal• Long-range planning• Top management support• Climate for change• Professional staff

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The learning organisation• Characteristics:

– Shift of emphasis from trainer to learner ownership

– The whole range of leaning opportunities within the organisation is recognised (on-job, off-job, coaching, formal, informal, multimedia, open and blended learning)

– Managers are encouraged to develop coaching, mentoring and assessing skills

– Additional learning opportunities are created for example: resource centres and continuous learning

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How can a learning organisation be created?

Stage 1

Stage 2

Stage 3

Identify what currently exists: who has received training, what qualifications have been taken, what T&D structure is already in place within the company. Identify what resources, facilities, budgets are available. Also benchmark: how are other companies organised?

Identify the opportunities within the working environment for coaching, mentoring and on-job training assessment. Match this back to Stage 1; are managers trained to coach, mentor and assess?

Identify pilot potential and a starting point: who is learning what; what are the success criteria implications on the budget, training requirements?

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How can a learning organisation be created?

Stage 4

Stage 5

Stage 6

Create an internal marketing plan, identify how to promote the concept, who to involve.

The process starts, encourage people to take part, look at the big picture across the organisation.

Review the pilot: identify how it matches the success criteria. Promote success, for instance in a newsletter about people's experiences. Ensure that there are measures of where it is working, an audit of where leaning is taking place. Importantly, review the process continually. Ask the questions, Is it working? Is it working everywhere? How can I as a trainer help the process? What can the organisation do to help me help others?

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training challenge

• Education & training• Economic restructuring• Better management practices

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Human Resource Management in South Africa 3/e by Grobler, Wärnich et al ISBN 1-84480-328-7

© 2006 Thomson Learning

The South African Qualifications Authority Act

No 58 of 1995• In order to rectify the enormous shortage of

skilled manpower with the limited budgets available, the South African government has embarked on a number of innovative and resourceful programmes:– The merging of different education departments into

one controlling body– The acceptance of an education policy that integrates

the education and training effort within the country– Passing through parliament of the South African

Qualifications Authority Act, No. 58 of 1995, during 1995

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Human Resource Management in South Africa 3/e by Grobler, Wärnich et al ISBN 1-84480-328-7

© 2006 Thomson Learning

The South African Qualifications Authority Act

No 58 of 1995• Provides for the development and

implementation of a national qualifications framework (NQF) designed to give national recognition to learning that takes place after compulsory education to encourage the growth of skills and redress the skills imbalance as well as the values deficit in South Africa

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Human Resource Management in South Africa 3/e by Grobler, Wärnich et al ISBN 1-84480-328-7

© 2006 Thomson Learning

The South African Qualifications Authority Act

No 58 of 1995• Objectives of the Act:

– Create an integrated national framework for learning achievements

– Facilitate access to, and mobility and progression within education, training and career paths

– Enhance the quality of education and training– Accelerate the redress of past unfair

discrimination in education, training and employment opportunities

– Contribute to the full personal development of each learner and the social and economic development of the nation at large

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Human Resource Management in South Africa 3/e by Grobler, Wärnich et al ISBN 1-84480-328-7

© 2006 Thomson Learning

The South African Qualifications Authority Act

No 58 of 1995• SAQA

– 6 Directorates– Membership = 29– 1 regional office– Establishment of standards or qualification is

the function of the standards generating bodies (SGB) which falls under national standards bodies (NSBs)

– There will be 12 NSBs, covering 12 fields of learning

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Human Resource Management in South Africa 3/e by Grobler, Wärnich et al ISBN 1-84480-328-7

© 2006 Thomson Learning

The South African Qualifications Authority Act

No 58 of 1995• Functions:– Oversees the development of the NQF– Formulates and publishes the policies and

criteria for:• The registration of bodies responsible for

establishing education and training standards or qualifications

• The accreditation of bodies responsible for monitoring and auditing achievements i.t.o the standards and qualifications

– Oversees the implementation of the NQF– Accepts the responsibility for the control of

the Authority’s finances– Advises the Minister on matters affecting the

registration of standards and qualifications

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Unit standards• A unit standard title• A SAQA logo• Registration number• Unit standard level on

the NQF• Credit attached• Field and subfield • Issue date• Review date• Purpose

• Learning assumed to be in place before learning this unit standard

• Specific outcomes• Assessment criteria for

each specific outcome• Accreditation• Range statement• Notes category

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SAQA frameworkSAQA

Standard-setting process

•Registration of bodies responsible for setting standards•Registration of standards

Quality assurance process

•Accreditation of bodies•Monitoring and auditing standards

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Bodies instituted by the SAQA Act

• South African Qualifications Authority (SAQA)

• National Standards Bodies (NSBs)• Standards Generating Bodies (SGBs)• Education and Training Quality

Assurance bodies (ETQAs)

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Functions of NSBs• Define & recommend to SAQA the boundaries

of the discrete field for which it is constituted• Define & recommend to SAQA a framework of

subfields to be used as a guide for the recognition and/or establishment of SGBs

• Recognise and/or establish SGBs within the framework of subfields, or withdraw or rescind such recognition or establishment

• Ensure that the work of SGBs meets the requirements for the registration of standards and qualifications as determined by SAQA

• Recommend the registration of standards on the NQF to SAQA

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Functions of NSBs (continued)

• Recommend the registration of qualifications to SAQA

• Update and review qualifications• Define requirements and mechanisms of

moderation to be applied across ETQAs• Appoint office-bearers, such as

committees and members of committees as required to carry out the functions designated, in consultation with SAQA

• Perform such other functions as may from time to time be delegated by SAQA

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Functions of SGBs• Generate standards and qualifications in

accordance with SAQA requirements in identified subfields and levels

• Update and review standards• Recommend standards and qualifications to

NSBs• Recommend criteria for the registration of

assessors and moderators/moderating bodies

• Perform such other functions as may from time to time be delegated by its NSB

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Functions of ETQAs• Accredit constituent providers for specific

standards or qualifications registered on the NQF• Promote equality amongst constituent providers• Monitor provision by constituent providers• Evaluate assessment and facilitation of

moderation among constituent providers• Register constituent assessors for specified

registered standards or qualifications i.t.o the criteria established for this purpose

• Take responsibility for the certification of constituent learners

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Functions of ETQAs (continued)

• Cooperate with the relevant body/bodies appointed to moderate across ETQAs

• Recommend new standards or qualifications to NSBs for consideration, or modification to existing standards/qualifications to NSBs for consideration

• Maintain a database• Submit reports to SAQA• Perform such other functions as may from

time to time be assigned to it by SAQA

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ETQAs (continued)

• Once standards have been set, education & training bodies (ETQAs) will perform quality assurance and ensure (through accreditation & monitoring) that standards are maintained

• ETQAs – permanent, accredited substructures of SAQA

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ETQAs (continued)• Five areas of responsibility have been identified as

the core roles of ETQAs:– Standard setting (through feedback or

facilitation of NSBs)– Quality assurance (through accreditation and

monitoring)– Provision of training (few industry training

boards currently provide training)– External linkages (with other industry training

boards)– Capacity building (in terms of knowledge

provision and expertise)

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Qualification registration on the NQF

• Represent a planned combination/sequence of unit standards/other learning elements (courses/modules) that have clear purposes and which will provide qualifying learners with an overall outcome of demonstrable integrated advancement in education and training

• Comply with the NQF’s objectives including access, mobility, progression and quality. Here it is necessary to show the critical outcomes have been included to ensure a meaningful, integrated qualification that meets the challenges of lifelong learning and that has currency

• Be internationally comparable, where applicable

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Criteria for generating standards and qualifications

• Process criteria– Scope– Purpose– Inclusivity– Consultation– International comparability and

recognition– Plans and management procedures

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Criteria for generating standards and qualifications

(continued)• Systems criteria

– Analysis of current education and training provision and standards in the subfield

– Analysis of trends– Analysis of requirements of qualifying

learners and practitioners– Statement of purpose of each of the unit

standards, standards and qualifications at the level selected for standards generating activities

• Format criteria

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Unit standards (continued)

• Primary uses of unit standards:– Descriptions of end points of learning

(towards which learning programmes should aim)

– Descriptions of what must be assessed, in what contexts, and the standard of performance required

– A means of recognising achievements (records of learning and/or competence portfolios will indicate what unit standards and qualifications have been achieved by learners)

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Format for unit standards• Title of the unit standard• Logo• Unit standard number• Unit standard level• Credit attached to the unit standard• Field and subfield within which the unit

standard applies• Issue date• Review date• Purpose of the unit standard

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Format for unit standards (continued)

• Learning assumed to be in place• Specific outcomes• Assessment criteria• Accreditation process criteria• Range statement• Notes• Embedded knowledge• Critical cross-field outcomes

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Format for qualifications• Qualification title• Qualification type• Logo• Registration number• Level• Total credit value• Field and subfield• Issue date• Review date• Purpose

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Format for qualifications (continued)

• Learning assumed to be in place• Exit level outcomes• Embedded knowledge• Critical cross-field outcomes• Assessment criteria• Accreditation process criteria• Range statement• Notes

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Purpose of the SDA 97 of 1998

• To develop skills of the SA workforce• To increase the levels of investment in

education and training in the labour market and to improve return on investment

• To use the workplace as an active learning environment

• To provide employees with the opportunities to acquire new skills

• To provide opportunities for new entrants to the labour market to gain work experience

• To employ persons who find it difficult to be employed

• To encourage workers to participate in leadership and other training programmes

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Purpose of the SDA 97 of 1998 (continued)

• To improve the employment prospects of persons previously disadvantaged by unfair discrimination and to redress those disadvantages through training and education

• To ensure the quality of education and training in and for the workplace

• To assist work-seekers to find work, retrenched workers to re-enter the labour market and employers to find qualified employees

• To provide and regulate employment services

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Institutions established by the SDA

• National Skills Authority• National Skills Fund• Sector Educational and Training

Authorities (SETAs)• Labour Centres• A Skills Development Planning Unit

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Functions of the National Skills Authority

• Advise the Minister of Labour on – A national skills development policy and strategy– Guidelines on the implementation of the national

skills development strategy– Allocation of subsidies from the NSF– Any regulations to be made

• Liaise with SETAs • Report to the Minister on the progress made in

the implementation of the national skills development strategy

• Conduct investigations on any matter arising out of the application of the SDA

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Functions of SETAs• Develop a sector skills plan within the

framework of the national skills development strategy

• Implement its sector skills plan by – Establishing learnerships– Approving workplace skills plans– Allocating grants in the prescribed manner

to employers, education and training providers and workers

– Monitoring education and training in the sector

• Promote learnerships by identifying workplaces for practical work experience

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Functions of SETAs (continued)

• Support the development of learning materials

• Improve the facilitation of learning• Assist in the conclusion of learnership

agreements• Register learnership agreements• Liaise with the NSA on

– The national skills development policy– The national skills development strategy– Its sectoral skills plan

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Functions of the Skills Development Planning Unit

• Research and analyse the labour market in order to determine skills development needs

• To assist in the formulation of the national skills development strategy and the sector skills development plans

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Functions of Labour Centres

• Provide employment services for workers, employers and training providers – improvement of services to rural communities

• Register work-seekers• Register vacancies and work

opportunities

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Workplace skills plan: a process flow

• Refer to Figure 10-11 on page 340

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Summary• T&D is important in the achievement of organisational

objectives. Through training, employees gain skills, abilities, knowledge and attitudes that help them perform more effectively in present and future jobs. As such, T&D may be considered an investment in human resources that will provide many important benefits and returns to the organisation.

• T&D serves the organisation by performing a number of important functions: (1) improving performance; (2) updating employee skills; (3) promoting job competency; (4) solving problems; (5) preparing for promotion; and (6) orienting new employees.

• The training process includes three distinct but related phases: needs assessment, design and delivery and evaluation. Each phase is important for successful T&D and none can be omitted.

• T&D must reflect certain principles of learning to be successful. The following principles hold: The trainee must be motivated, the trainee must get feedback on his or her progress, the material must be well organised, the trainee must be able to practise and learning must be transferred to the job environment.

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Summary• Effective T&D includes a balance of both on- and away-from-

the-job activities. Individual programmes should be created, particularly for managers, and should be built on current strengths and weaknesses, career potential and personal needs.

• T&D administrators should make every effort to evaluate T&D. Only through a sound evaluation will trainers obtain support from top management and show how T&D improves organisational effectiveness. Major T&D efforts should include the following levels of evaluation: reaction, learning, behaviour change and results. Evaluation should focus primarily on how the trainee’s performance improves after completion of training.

• Both line and staff trainers must be aware of the legal environment surrounding the T&D function. Race, religion, sex, colour, national origin or age must not be a factor in determining who receives training or who is selected to be developed for promotional opportunities. The only exception to this rule is where an organisation has an approved affirmative action programme.

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Summary• Technical, conceptual and human relations skills provide the

foundation for all management jobs, although the mix of the three skills will vary considerably according to management level. T&D professionals should become knowledgeable about how the skills and abilities for effective management vary among low, middle and top management.

• All HRD professionals should become familiar with the behavioural patterns of obsolescent managers and determine the extent to which the problem of obsolescence pervades the organisation.

• T&D involves close cooperation between line and staff personnel, and each must recognise their shared authority.

• Various Acts were promulgated by the Government towards addressing the serious skills shortages in South Africa, the South African Qualifications Authority Act No 58 of 1995, the Skills Development Act No 97 of 1998 and the Skills Development Levies Act No. 9 of 1999.

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Chapter 11 – Managing

compensation & benefits

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Chapter outcomes• Explain the link between pay, motivation and

performance• Define job evaluation and discuss four popular

methods of performing it• Develop a time-based pay system using pay

grades and steps• Discuss three types of individual incentives• Discuss why gainsharing, profitsharing and

employee stock ownership plans (ESOPs) have grown as organisational incentive plans

• Understand executive compensation methods• Understand the growth of employee benefits

and their organisational objectives

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Definitions

• Compensation often used interchangeably with wage and salary administration

• Compensation is a broader concept • Compensation refers not only to extrinsic

rewards such as salary and benefits, but also to intrinsic rewards such as achieving personal goals, autonomy and more challenging job opportunities

• Wage and salary administration usually refers strictly to the monetary rewards given to employees

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Compen-sation of employees

Extrinsic rewards

Monetary rewards

Hourly wageSalaryBonusesCommissionsPay incentives

Benefits

InsuranceRetirementPaid holidaysPaid public holidaysFood servicesMedicalRecreation

Intrinsic rewards

RecognitionPromotion opportunitiesWorking conditionsInteresting work

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Compensation objectives

• Attracting employees• Retaining good employees• Motivation• Legal considerations

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Objectives of a compensation system

1. Attract good applicants

2. Retain good applicants

3. Motivate employees

4. Comply with the law

Wage survey to determine the “going rate” in the labour market

Job evaluation system that employees perceive as “equitable”

Reward good performance

Documentation of HR records

Government legislation

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Motivation and performance model

Feedback to employee

Employee sets new goals and expectations based on prior experiences

Emplo-yee

performs job

Re-wards

are given

Employee sets expectations

and goals

Performance is evaluated

Employee considers equity of performance

rewards

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Job evaluation (JE)

• Process of systematically analysing jobs to determine the relative worth of jobs within the organisation

• Result is a pay system with pay rates for each job depending on the status of the job according to the hierarchy

• Does NOT review the employees in the job but the worth of the position

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Job evaluation (JE) (continued)

• JE methods:– Job ranking – Factor comparison– Classification method– Point method– Patterson method– Hay method– TASK– Peromnes

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Job evaluation (JE) (continued)

• Job evaluation committee• Outside assistance

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Pay systems

• Time-based systems• Person-based systems• Performance-based systems

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Guidelines for incentive plans

• Bold incentives• Emphasis on team performance• Quick feedback• Above-average base• Simple formula

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Incentive plans• Problems with incentive plans• Different types:

– Cash profit-sharing– Stock ownership or options– Business incentives– Productivity/gain-sharing– Team/group incentives– Individual performance awards– Special recognition awards

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Executive compensation

• 4 forms of pay:– (1) Base salary – (2) Annual bonus – (3) Long-term incentives– (4) Benefits and perquisites (“perks”)

• Golden parachutes• Stock options

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Benefits• Types of benefits• Benefits required by law:

– Unemployment insurance– Compensation for injuries and

diseases• Voluntary benefits• Paid time off• Insurance• Employee services

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Total benefit planning

• Flexible benefit plans– Cafeteria plan– Buffet plan– Alternative dinners plan

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Advantages of flexible plans

• Meet diverse needs of employees• Control benefit costs• Improve benefits offered• Attract and retain employees• Avoid unions• Avoid duplicate coverage

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Summary• Organisations use both extrinsic and intrinsic rewards to

compensate employees for their time and effort. Pay systems are designed to attract, retain and motivate employees while complying with government legislation.

• Job evaluation is used to evaluate jobs systematically and to assign them to pay grades. The HR specialist strives to maintain a pay system that employees view as equitable, both internally and externally. Standard methods of evaluation include ranking, classification, point and factor comparison. Each offers different advantages.

• Pay systems are usually designed to compensate people for the amount of work they produce (piecework), the skills they learn and use or the time they spend on the job (hourly and salaried). Most employees in South Africa are paid through time-based systems.

• Individual employee, team-based and organisationwide systems, such as profit-sharing and gainsharing, are replacing automatic pay increases to relate pay to performance.

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Summary• Executive compensation has become a complex area of

HR functions. Top executives often receive compensation in as many as four areas, including salary, bonuses, long-term incentives and benefits.

• Employee benefits are not just a fringe cost to employers; they represent a substantial percentage of the total payroll. Benefits are usually awarded to all workers or on a seniority basis.

• Certain benefits are required by law, including unemployment insurance and compensation for injuries and diseases.

• Retirement income is provided through private/government pension plans and personal savings. Employers believe that they directly or indirectly provide all these sources - which constitute the single most expensive benefit area.

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Summary• Health insurance programmes provided by

employers have expanded to include life/disability insurance, as well as the traditional medical and hospitalisation coverage.

• Paid time off from work represents a major benefit cost.

• Flexible benefit plans are of great interest to employers because they help contain benefit costs and provide employees with more individualised benefit programmes.

• Changing employee demographics have caused employers to offer childcare programmes to help employees meet their family needs.

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Chapter 12 – Health & Safety

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Chapter outcomes

• Differentiate between stress and burnout• Discuss the essentials for an effective

employee assistance programme (EAP)• Name several work related consequences of

alcohol and drug abuse• Discuss the impact of Aids on the workplace• State the purpose of the Occupational Health

and Safety Act and discuss its major provisions• List several specific things an organisation can

do to help reduce violence in its workplace

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Definitions

• Health – general state of physical, mental and emotional well-being

• Safety – physical safety of employees, prevention of injuries and accidents

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Stress• Stress - a discrepancy between an

employee’s perceived state and desired state, when such a discrepancy is considered important by the employee

• Influences two behaviours:– The employee’s psychological and

physical wellbeing– The employee’s efforts to cope with

the stress by preventing or reducing it

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Forms of stress

• Eustress (positive) – accompanies achievement and exhilaration

• Distress (negative) – harmful, have a sense of loss of feelings of security and adequacy

• Helplessness, desperation and disappointment turn stress into distress

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What causes stress?• Stress is never the result of one

single cause• Interrelated factors/stressors:

– Pressure at work– Too many social commitments;– An uncomfortable living or working

environment; or– An inability to organise and manage

your time effectively.

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Controlling stress• Organisational policies

& strategies:– Preventive

management– Maintaining a

productive culture– Management by

objectives– Controlling the physical

environment– Employee fitness

facilities

• Personal strategies:– Meditation– Exercise– Removing the

causes of stress– Becoming a

mentor– Seeking

counselling– Extended leave

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Burnout

• More than stress, it occurs when a person believes they cannot or will not continue to do the job

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Symptoms of employee burnout

Physical

Change in physical appearance

Complaints eg headaches

Absenteeism

Symptoms of depression

Frequent infections

Emotional

Depressed appearance

Appearing bored

Attitude of cynicism, resentfulness, apathy or anxiety

Expressions of frustration or hopelessness

BehaviouralProductivity

Tardiness

Frequent absenteeism

Withdrawal

Expressions of irritability/hostility

Overworking

Abuse of drugs/alcohol

Smoking

Excessive exercise Human Resource Management in South Africa 3/e

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Steps to mitigate the occurrence of burnout

1. Acknowledge the problem2. Train managers3. Time limits4. Recognise people’s contributions5. Provide emotional outlets6. Provide retraining

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Employer healthcare programmes

• Employee assistance programmes (EAPs) – designed to help employees overcome personal crises such as alcoholism, job burnout or family problems

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Essentials for an effective EAP

• Confidentiality• Normal disciplinary procedures• Voluntary participation• Job security• Insurance coverage• Management support• Accessibility• Follow-up• Separate location

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Employer healthcare programmes (continued)

• Wellness programmes – wider focus than traditional company fitness programmes

• 3 components:– Helps employee to identify potential health

risks through screening– Educates employees about such health risks– Encourages employees to change their

lifestyles through exercise, good nutrition and health monitoring

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Most popular wellness activities

• Smoking cessation• Health-risk appraisals• Back care• Stress management• Exercise/physical fitness• Off-the-job accident prevention• Nutrition education• Blood pressure checks• Weight control

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Substance abuse• Alcohol abuse

– Reducing alcoholism• Drug abuse• SANCA steps to reduce

alcoholism & drug abuse:1. Confront individual in firm & supportive

manner2. Disclose factual evidence3. Promote communication4. Consult a professional if needed

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Smoking

• Negative effects well documented• Damage to non-smokers• 1 January 2001 – declaration of the

workplace as a public place• Written policies on smoking

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AIDS• Social & organisational ramifications

proactive organisational policy• Failure to deal with AIDS in the workplace

may bring about the following costs:– Absenteeism and worker attrition– Employees will require time off to care for sick

family members– Compassionate leave– Time off to attend funerals– Productivity will decline– Supply & cost of labour– Higher recruitment and training costs

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Safety management• Benefits of safety programmes:

Insurance premiums Related legal expenses– Savings in salaries/wages and

benefits of injured workers Overtime and training of new

workers Productivity

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Occupational injuries & illnesses/diseases

• Cumulative trauma disorder (CTD)• Sick building syndrome• Occupational diseases

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Occupational safety & health administration

• Occupational Injuries and Diseases Act 83 of 1993 (OHSA) purpose:– To provide for the health and safety of

persons at work & persons in connection with the use of plant and machinery

– The protection of persons other than persons at work against hazards to health and safety arising out of or in connection with the activities of persons at work

– To establish an Advisory Council for occupational health and safety

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Occupational safety & health administration (continued)

• Occupational Injuries and Diseases Act 83 of 1993 (OHSA):– Overall aim:

• Provide for the health & safety of employees at work

– Who is excluded from this Act?• Parties covered by the Merchant Shipping

Act• People employed in mines, mining areas or

any works defined in the Mine Health and Safety Act 29 of 1996

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Occupational safety & health administration (continued)

•Duties of employer–Providing safe systems of work, plant and machinery

–Eliminating hazards–Arranging for the safe production, processing, use, handling, storage or transport of articles or substances

–Providing information, instructions, training and supervision required to ensure the necessary safety

•Duties of employees– Take care of his or her

own health and safety & of other persons who may be affected by his/ her actions/negligence to act. This includes playing at work.

– Cooperate with the employer

– Give information to an inspector from the DoL if required

– Carry out which the employer or authorised person prescribes

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Occupational safety & health administration (continued)

•Duties of employer–Not permit an employee to perform any work unless precautionary measures have been taken

–Ensuring that requirements of the Act are complied with by all employees

–Ensuring that work is supervised by persons trained to understand hazards of the work

–Informing all employees of their duty under the Act

•Duties of employees–Comply with rules & procedures employer gives

–Wear prescribed safety clothing/use prescribed safety equipment where required

–Report unsafe/unhealthy conditions employer/health & safety representative asap

– If he/she is involved in an incident that may influence health/cause an injury, report that incident asap, but no later than by the end of the shift

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OHSA 85 of 1993 (continued)

• Advisory Council for occupational health & safety

• Health & safety representatives• Duties of health & safety

representatives• Health & safety committees• Reporting of incidents• Occupational diseases• Inspectors• Victimisation

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Nosa international

• Offices in 5 continents• Involved in training, education and

motivation of employees at all levels of employment in mining industry and commerce

• Publishes monthly magazine (Safety management), monthly newspaper (Workers life) and newsletter twice a month (World@Nosa)

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Workplace violence

• Avoid falling victim to violent incidents in the workplace:– Hire carefully - screen out employees

whose histories show a propensity to violence

– Draw up a plan and involve employees - develop a plan for preventing violence and for dealing with it if it does occur

– Adopt a "zero tolerance policy" - the perpetrator of the violence will be dealt with

– Enlist the aid of professionals - external resources should be used when a potential problem reveals itself

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Summary• Job stress is a pervasive problem in our society. It

may result in low productivity, increased absenteeism and turnover, and other employee problems including substance abuse, mental health problems and cardiovascular illnesses. Strategies to control stress include fitness programmes, meditation, counselling and leave.

• EAPs can help employees overcome serious problems that affect productivity. Employers can retain highly skilled and valuable employees who suffer from alcoholism, drug abuse, depression, family problems or other common crises. But normal disciplinary procedures should be followed when an EAP is provided. Employee participation may be strongly encouraged but ultimately the employee must voluntarily seek help.

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Summary• The Occupational Health and Safety Act requires

employers to keep records of employee injuries and illnesses. Employers should ensure that relevant OHSA regulations are met. Organisations can benefit from a safe workplace through reduced insurance premiums, fewer lost worker hours and fewer accident claims.

• Policies on smoking in the workplace, drug usage and AIDS are being developed by many employers as these issues generate greater interest in our society. However, while more employers are adopting a smoking ban, few are adopting an AIDS policy.

• Security of workplaces has group in importance particularly in light of the increasing frequency in which workplace violence occurs.

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The environment for HR

Finding & placing qualified workers

Assessing & developingqualified workers

Labour relations

Emerging HRpractices

4CHAPTER 13:

The Union–management relationship, employee discipline and dismissal

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Chapter 13 – The Union–

management relationship,

employee discipline and dismissal

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Chapter outcomes• Describe what a union is and explain why

employees join unions• Understand the basic elements of the Labour

Relations Act, No 66 of 1995 as well as the Labour Relations Amendment Act No 12 of 2002

• Discuss the role and objectives of the National Economic Development and Labour Council (NEDLAC)

• Describe the typical collective bargaining process

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Chapter outcomes• Recognise the various sources of poor

performance through the illustration and discussion of an unsatisfactory performance model

• Explain both good and poor ways to discipline employees

• Illustrate a model of positive discipline and describe the procedures for ensuring that discipline achieves its goals

• Identify the procedures for carrying out the dismissal decision humanely and tactfully and according to the law

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Labour relations management

....that part of management that encompasses a study of those factors and dynamics that emanate from, and are related to, employment relationships.

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The role players in labour relations

The State

Employee(trade union)

Employer(management)

Secondary relationship

Secondary relationship

Primary relationship

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Trade union

.... an ongoing permanent organisation established by the workers to protect themselves in their work, to improve their working conditions through collective bargaining, to try to improve their living conditions and to offer a mechanism by which workers can put their standpoints.

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Primary goal of a trade union

... to promote the interests of its membership through collective bargaining (standard of living and working conditions).

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Trade union goals• Union security

– Closed shop– Agency shop

• Job security• Improved economic conditions• Working conditions• Fairness and justice• Social action

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Kinds of unions• Industrial unions

– National Union of metal Workers of South Africa (NUMSA)

– National Union of Mine Workers (NUM)

• Trade/craft unions– The South African Boilermakers’ Society

• Employee association– Public Servants Association

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Trade union rights• Sufficiently representative trade unions

– Access to the workplace– Union meetings at the workplace– Stop-order facilities– Leave for trade union activities

• Majority representative trade unions– Election of shop stewards– Disclosure of information

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The formal dimension of labour relations

• Constitution• Labour Relations Act• Basic Conditions of Employment Act• Occupational Health and Safety Act• Compensation for Occupational Injuries and

Diseases Act• Unemployment Insurance Act• Employment Equity Act• Skills Development Act• Skills Development Levies Act

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The Constitution and Fundamental Rights

Labour Relations ActNEDLACInternational Conventions

Rights and obligations of employees, unions,

employers and employers’

organisations

Promotion of collective bargaining

and worker participation

Dispute resolution and labour peace

Freedom of association

Organisational rights

Unfair dismissal

Unfair labour practice

Strikes and lockouts

Collective agreements

Bargaining Councils

Statutory Councils

Workplace forums

CCMA

Labour Court

Labour Appeal Court

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Rights and obligations of employees,

unions, employers and

employers’ organisations

Freedom of association

Strikes and lockouts

Unfair labour practice

Organisational rights

Unfair dismissal

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Promotion of collective

bargaining and worker

participation

Collective agreements

Bargaining Councils

Workplace forums

Statutory Councils

Written agreement

Terms & conditions of employment

Between registered trade union(s) and

employer(s)/employers’ organisation(s)

Established for a specific sector in a specific geographical area

Functions:(1) Collective bargaining

(2) Dispute resolution

Aims are to promote(1) the interests of all

employees(2) participation and efficiency

Functions:(1) Consultation

(2) Joint decision making(3) Information sharing

Established at request of union(s)/employers’

organisation(s) representing 30%+ of employers/employees

in sector & areaFunction:

Dispute resolution

Difference?

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Dispute resolution

and labour peace

Labour Appeal Court

CCMA Labour Court

Councils &

private agencie

s

? ?

?

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NEDLAC

EXECUTIVE COUNCIL

Representatives of The State

Organised labour Organised employers

Development organisations

Management Committee Secretariat

Summit

Chambers

Public finance and monetary

policy

Trade and industry

Labour market Development

State, employer and union representatives

Community development representatives

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The phases of the negotiation process

Planning, preparation and

organisation

PRE-NEGOTIATION/ PREPARATORY

PHASE

Execution of negotiation

strategies and tactics, and utilisation of

structures in order to achieve objectives

NEGOTIATION/INTERACTIVE

PHASE

Agreements are concluded, and the

maintenance of relations and the administration of

agreements follow

POST-NEGOTIATION/

ADMINISTRATIVE PHASE

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Strike

• Temporary• Stoppage of work• Collective action• Means of expressing a grievance

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Strikes: Procedural requirements

• Dispute to bargaining/statutory council or CCMA• 30 day waiting period• 48 hours’ notice• Ballot?

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Grievance vs gripe

• Grievance– A formal complaint by an employee concerning a

possible violation of the labour contract

• Gripe– A complaint by an employee concerning an action

by management that does not violate the contract

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Typical steps in a grievance procedure

Grievance procedure endsStart of dispute settlement process if preferred, eg bargaining

council, mediation, conciliation, arbitration, judicial settlement or strike

Ruling at highest level(top management)

10 working days

Settled

Formal grievance investigation(committee with higher-level manager)

7 working days

Settled

Manager from higher levelWorker & representative4

working days

Settled

Head of immediate supervisorWorker & representative 48 hours

Settled (record)

Immediate supervisorWorker 24 hours

Settled (record)

Verbally

First in writing

Second in writing

Unsettled

Unsettled

Unsettled

Unsettled

Unsettled

Step 1

Step 2

Step 3

Step 4

Step 5

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A model for analysing and correcting unsatisfactory

performanceDefine

performance expectations

Identify causes of unsatisfactory

performance

Select appropriate corrective

approach(es)

1

2

3

Lack of skills or abilities

Lack of motivation

Rule breaking

Personal problems

Terminate

DisciplineTrain

Transfer/ demote

Change the work Rehabilitate

Council/ refer

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Steps in the process of discipline

Clarify responsibility for discipline

Define expected employee behaviour

Communicate disciplinary policy, procedure and rules

Collect performance data

Administer progressive discipline

Administer corrective counselling techniques

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The hot-stove rule

• Immediate• Warning• Consistent• Impersonal

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Dismissal• Automatically unfair dismissals• Other unfair dismissals

– Substantive fairness (reason)• Misconduct• Incapacity• Operational reasons

– Procedural fairness (procedure)• Remedies

– Reinstatement– Reemployment– Compensation

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Dismissal for misconduct• Substantive fairness

– Contravene a workplace rule/standard?– Rule/standard reasonable/valid?– Employee aware of rule/standard?– Rule/standard consistently applied?– Dismissal appropriate sanction?– Gravity of misconduct– Nature of job/workplace– Circumstances of employee/employer

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Dismissal for misconduct (continued)

• Procedural fairness– Investigation– Prior notice of charge & results of investigation– Reasonable time for preparation– State case (disciplinary hearing)– Assistance and representation (union official or

fellow worker NOT legal representation)– Written notification of decision– Reasons

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Dismissal for incapacity: Incompetence

• Substantive fairness– Fail to meet performance standard– Aware of required performance standard– Fair opportunity– Appropriate sanction

• Procedural fairness– Opportunity to improve– No other alternatives

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Dismissal for incapacity: Ill health or injury

• Substantive fairness– Capable of performing work– Extent of capability

• Procedural fairness– Adaptation of work circumstances– Alternatives

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Dismissal for operational reasons

• “No fault” dismissals• Substantive fairness

– Valid economic reason

• Procedural fairness– Consultation– Attempt to reach consensus– Measures to avoid dismissals– Method of selection– Severance pay

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Dismissal for operational reasons• Procedural fairness (continue)

– Disclose information• Reason for dismissals• Alternatives• Number of employees affected• Method of selection• Time• Severance pay• Assistance

– Future reemployment– Representations– Consider and respond to representations– Provide reasons– Selection of employees according to set criteria

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Summary• A union has a major impact on an organisation’s management.

Many HR decisions must be shared with the union, and the labour contract limits management’s flexibility for the length of the agreement. Finally, poor relations between management and labour may result in costly and stressful organisational conflict.

• The percentage of organised labour in South Africa has doubled since 1985 to approximately 3 million. This represents about 40% of the workforce.

• The goals of the unions have not changed dramatically since their beginning. Important union goals include job security, improved wages and benefits, favourable working conditions and fair and just treatment for their members.

• The heart of the union structure is the local union, although the national union provides important direction and guidance. The local union often receives assistance from the national union during the collective bargaining process.

• During the organising drive, the union attempts to convince workers that they will be better off by organising. Management tries to convince them that they are better off without the union. Labour legislation provides a number of ground rules regarding the recognition of a union in the workplace. Human Resource Management in South Africa 3/e

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Summary• Relations between organised labour and management are

strictly governed by the Labour Relations Act, No. 66 of 1995. Managers and HR administrators who work in unionised organisations must be intimately familiar with this law.

• There are a variety of different collective bargaining strategies. The most common form involves distributive bargaining, or win/lose bargaining, although this strategy seems to be giving way to more cooperative forms such as integrative bargaining and productivity bargaining. Concessionary bargaining, or give-back bargaining, has increased as a result of foreign competition.

• The negotiation process involves a great deal of give and take before an agreement is reached. A bargaining impasse may cause a strike, lockout or other power tactic. However, more often mediation or other third-party techniques will be used to end the impasse.

• Grievance handling is a critical part of labour relations. The multi-step procedure usually includes arbitration as a final step. The grievance process can keep minor disagreements from disrupting the workplace unnecessarily. Human Resource Management in South Africa 3/e

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Summary• Many reasons may cause an employee to perform

unsatisfactorily. Some of these reasons may be directly attributable to management’s shortcomings or to some other problem of the organisation. When attempting to determine the cause of poor employee performance, managers should recognise that the employee may not be responsible for the unsatisfactory behaviour.

• Discipline should be applied only when it has been determined that the employee is the cause of the unsatisfactory performance. There are different approaches to the disciplinary process; the most effective technique involves administration of preventive discipline. If discipline must be administered, the positive approach should be used.

• Corrective counselling is a particularly important part of the positive discipline process. It helps build respect and trust between the supervisor and subordinate and encourages the employee to find his or her own solutions to problems. The more the employee participates in the problem-solving process, the greater the chances for a permanent improvement in employee behaviour. Human Resource Management in South Africa 3/e

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Summary• Much of the supervisory resistance to change can be reduced

by training supervisors to follow the hot-stove rule. With this technique, discipline is administered immediately, with a warning, consistently and impersonally. HR managers must ensure that supervisory training programmes provide instruction in applying each of the hot-stove rules.

• Dismissal can be traumatic and costly for both the dismissed employee and the organisation. The dismissal should be thoroughly planned and carried out in a professional manner and according to the law. It is particularly important that the employee be given complete details regarding the dismissal, including why it is taking place and how the dismissal is to be carried out.

• For a dismissal to be fair it must be substantively and procedurally fair.

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The environment for HR

Finding & placing qualified workers

Assessing & developingqualified workers

Labour relations

Emerging HRpractices

5

CHAPTER 14:

Competency based HRM

CHAPTER 15:

HRM in virtual organisations

CHAPTER 16:

International HRM Human Resource Management in South Africa 3/e

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Chapter 14 – Competency-based HRM

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Chapter outcomes• Identify the components of a total performance

solution• Define the concept "competency"• Describe a competency-based HR transformation• Summarise the process of identifying competencies

for the organisation• Explain competency-based HR planning• Discuss competency-based employee recruitment

and selection• Outline competency-based training and

development• Describe competency-based performance appraisal• List key aspects relating to competency-based

employee rewards

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A total performance solution

• Nature of organisational performance:– Driven from the top down, not from the bottom

up– Is the product of winning behaviour– Winning behaviour can be effectively modelled

by competencies– Is always about achieving specific measurable

goals that help the organisation to win– Is defined by measurement– Is shaped by the promise of rewards (and the

fear of punishment)

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A total performance solution

Perfor-mance

Values

Rewards

Leadership development

Competen-cies Goals

PurposeCompetitive

market pressureBusiness plans

Technology Shareholder requirements

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Competencies defined

• A behaviour, knowledge, skill or capability, that describes the expected performance in a particular work context (eg. job function). When they are appropriately developed, they are the standards of success that support the strategic plan, vision, mission and goals of the organisation

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Simple definition

• Competencies are characteristics that individuals have and use in appropriate, consistent ways in order to achieve desired performance

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Individual/organisational capabilitiesIndividual Organisationa

l

Technical1

Individual functional

competence

3Organisation’s

core competence

Social2

Individual’s leadership

ability

4Organisation’s

capabilities

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Competency-based HR transformation – design

processPlanning & Discovery

Why change?

Discovery

Sponsorship

Strategic Architecture

Prioritising competencies

Implemen-tation

Gaining approval

Transitional management

Monitor results

Communica-tions

Enact changes

Desired future state

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Competency identification

1 32

4

5

6

Competencies generated from current & future

trends

Competencies generated from core

capabilities in leading firms

Competencies generated from the

organisation’s strategy

Synthetic list of competencies and

scope

Generalisability, creation of competency

areas & sorting of competencies by areas

Validation of competency framework

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Competency identification methods

• The Job Competencies Assessment method (JCAM)

• The Competency Menu method• The modified DACUM method

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Competency-based HRM

• Why HR?• Competency-based HR planning• Competency-based employee recruitment

and selection• Competency-based training and

development• Competency-based performance appraisal• Competency-based employee rewards

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Comparison between traditional and competency-

based HR• Foundation• Main reasons for using

approach• Major challenges• Role of the HR function• HR planning subsystem• Employee recruitment

& selection

• Employee training subsystem

• Employee development subsystem

• Performance management subsystem

• Employee reward processes subsystem

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Summary• The functional structure of many HR departments today

can be traced back to the functional expertise possessed by its employees

• To embrace the new challenges facing the HR function it will have to move away from its compliance mindset and become more flexible

• The whole approach in the 1990s regarding the improvement of organisational performance shifted to the endorsement of people and their competencies

• Competencies are characteristics that individuals have and use in appropriate, consistent ways in order to achieve desired performance

• The shift to the competency-based HR focus will require much more than merely reshuffling the current boxes on the HR organisational chart

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Summary• The written description of all the competencies needed

within the organisation is known as a competency model• A number of methods which can be used to identify

competencies within organisations can be found these include: the job competencies assessment method (JCAM), the competency menu method and the modified DACUM method

• One of the drawbacks of identifying competencies is the high costs involved. The process is also time-consuming

• To monitor the successful implementation of a competency-based approach within an organisation a capabilities audit must be undertaken

• Competency-based HR planning focuses on competency inventory versus the traditional skills inventory

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Summary

• Competency-based recruitment and selecting requires a more extensive job analysis together with the examination of work histories and work samples

• Competency-based training and development is a highly individualised process. In the training needs analysis process a much broader focus is required. Identifying future competencies with a view of individual development can be a major undertaking within a company

• A major criticism of the use of competencies in performance appraisal is that they are not observable and measurable. Some mechanism is therefore essential for assessing competencies

• By linking compensation directly to individual contributions that make a difference to the company an organisation can maintain the highest calibre of workers.

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Chapter 15 – Human

Resource Management in

virtual organisations

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Chapter outcomes

• Define the concept "virtual organisation"• Identify three forms of virtual work

arrangements• List the advantages and disadvantages for the

company and employee when implementing the telecommuting work arrangement

• List the characteristics which truly identify a virtual team

• List three types of virtual teams

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Chapter outcomes (continued)

• Discuss the advantages and disadvantages when using technology such as e-mail, bulletin boards, audio and video conferencing

• Discuss the role of the HR professional within the virtual organisation

• Discuss issues relating to job analysis practices within the virtual work environment

• Discuss issues relating to a number of HR practices within the virtual work environment

• Explain how the traditional and virtual organisation differs

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Technology has:

• Prompted changes in company structures (eg. virtual organisation)

• Modified work arrangements (eg. virtual team)

• Influenced how people are managed (eg. virtual workplace)

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Virtual organisation defined

• Virtual organisations are multi-site, multi-organisational and dynamic. At the macro level, a virtual organisation consists of a grouping of units of different companies (eg. other businesses, consultants, contractors) that have joined in an alliance to exploit complementary skills, in pursuing common strategic objectives

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Virtual organisation (continued)

• Virtual organisations are characterised as those organisations in which the ongoing relationships with partners are salient

• Core business activities are reduced, leaving the partners to focus on some of the key business functions

• Core (or central organisation) is connected with the partners through technology

• Virtual organisations tend to be characterised as flexible, and their structure as transitory and fluid

• Many definitions of the concept tend to see groups as important. Some appear to see virtual teams as a sufficient condition for an organisation to be called a virtual organisation

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The virtual workplace• Telecommuting• Frontline model• Cyberlink model

– Virtual teams:• Group must have some charter for working

together• Group must be interdependent• Group must be committed to working

together• Group must be accountable as a unit to

someone or something in the bigger organisation

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The virtual workplace (continued)

• Cyberlink model (continued)– Types of virtual teams:

• Project teams• Service teams• Process teams

– Why virtual teams?– Cost benefits of implementing virtual

teams– Complexity of virtual teamworking– Technology for virtual teams

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Factors that contribute to the complexity of virtual

teamworking• Number of team members• Number of different languages spoken

in the team• Number or organisations represented in

the team• Number of time zones within the group• Technical systems implemented

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HRM practices in virtual organisations

• Virtual HR departments• The role of the HR professional in the

virtual organisation• HR practices in virtual organisations

– JA– Participants– Methods of data collection– Types of data and level of analysis

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HRM practices in virtual organisations (continued)

• HR practices in virtual organisations (continued)– Staffing– Recruitment– Selection– T&D– E-learning– PA– Compensation– Negotiation

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Important skills and competencies needed in

virtual organisations

Individual Managers

Team level

Shared sense of purpose

Operating guidelines

Analysing & solving problems

Conflict management etc.

Managing alignment

Co-ordinating activities

Encourage continuous learning

Managing through technology etc.

Dealing with change

Flexibility

Adaptability

Emotional control

Willingness to learn etc.

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Advantages of e-learning• Self-paced: trainees can proceed on their own

time• Is interactive, tapping multiple trainee senses• Allows for consistency in the delivery of training• Enables scoring of exercises/assessments and

the appropriate feedback• Incorporates built-in guidance and help for

trainees to use when needed• Is relatively easy for trainers to update content• Can be used to enhance instructor-led training

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Disadvantages of e-learning

• May cause trainee anxiety• Not all trainees may be ready for e-learning• Not all trainees may have easy and uninterrupted

access to computers• Not appropriate for all training content (eg.

leadership, cultural change)• Requires significant upfront cost and investment• No significantly greater learning evidenced in

research studies• Requires significant top management support to

be successful

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A model of virtual negotiation characteristics

Possible 3rd party

Individual differences

Personality, distributive vs integrative, sensitivity vs non-

verbals, comfort with technology

Negotiation dynamics

Personal disclosure, entrenchment, flaming,

ethics

Individual differences

Personality, distributive vs integrative, sensitivity vs non-

verbals, comfort with technology

Negotiation dynamics

Personal disclosure, entrenchment, flaming,

ethics

Party A Party B

Communication media

Synchronicity, message misinterpretation, message

content, information richness

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Attributes of virtual and traditional organisations

• Streamlined• Flexible• Focused• Communication• Hyper time• Organisation

structure

• Management of work & workers

• Career path• Information• Office building• Professionalism• Customer relations

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Summary• There is a fast-growing interest in another way of

working which combines changes, in technical and organisational systems of choice. This is virtual working and by extension virtual teams.

• Different types of teams within the virtual organisation can be found namely: project, service and process teams.

• The key for any company at the outset of a virtual teamworking implementation is to be technologically aware and open, not technologically deterministic and closed.

• Success of virtual teams will not come from tight managerial control, this inhibits the extent of the interactions within the network. Human Resource Management in South Africa 3/e

by Grobler, Wärnich et al ISBN 1-84480-328-7© 2006 Thomson Learning

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Summary• The team will benefit most from acknowledging the

fact that they are all individuals, and then drawing on their individual strengths to create a microcosm within the wider organisation that embodies shared culture and operating principle that they believe will enable them to deliver the best results as a team.

• Virtual organisations will need to adapt their recruiting processes to the changing skill base and nature of the labour pool from which they are recruiting.

• For the virtual organisation with its geographically dispersed global labour pools the traditional idea of candidates having onsite testing batteries and interviews is not practical.

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Summary• The virtual organisation's geographically dispersed

supervisors, peers and sub ordinates offer a unique environment for understanding, performance evaluation, monitoring the employee's outputs may be a way of making performance evaluations work under these conditions.

• In the area of compensation the following methods may be used in the virtual environment, person-based systems, broadbanding and classification.

• While the process of negotiation has been written about extensively, little has been done regarding this activity in the virtual environment. This environment will dictate new rules for negotiating.

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Chapter 16 – International HRM (IHRM)

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Chapter outcomes• Identify key forces driving the globalisation of

organisations• Identify the types of organisational forms used for

competing internationally• Understand the different types of cultures found• Explain how domestic and international HRM differ• Discuss the staffing process for individuals working

internationally• List and define four types of international

employees• List the different types of international

assignments found• Discuss issues relating to the induction of

international employees

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Chapter outcomes (continued)

• Identify the unique training needs for international assignees

• Reconcile the difficulties of home country and host-country performance appraisals

• Identify the characteristics of a good international compensation plan

• Explain the activities needed to increase expatriate completion rates

• Discuss the key issues in industrial relations of multinationals

• Describe several international health, safety and security concerns

• Discuss the importance of a global human resource management information system

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Main dimensions of IHRM• Selection and recruitment of qualified

individuals capable of furthering organisational goals

• Training and development of personnel at all levels to maximise organisational performance

• Assessment of employee performance to ensure that organisational goals are met

• Retention of competent corporate personnel, who can continue to facilitate the attainment of organisational goals

• Management of the interface between labour and management to ensure smooth organisational functioning

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Why do companies decide to do business abroad?

• Desire to reduce costs• Less government regulations pertaining

especially to pollution controls and safety requirements

• Access to growth opportunities that are not available at home

• Take advantage of labour force availability eg. quantity as well as quality

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Organisational firms used internationally

• Exporting• Licensing• Management contracts• Sole ownership• Types:

– Multinationals– Global– International– Transnational

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What types of cultures are found around the world?

• What is culture?– The shaping of the mind that

distinguishes the members of one group/category from those of another

• Identifying international cultures

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What impact does going abroad have on the activities of HR

professionals?• More functions• More heterogeneous functions• More involvement in employees’

personal lives• Change in emphasis as the

workforce mix varies• More external influences

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Environmental forces

Legal forces

Political forces

Labour traditions

Economic forces

National forces

HR systems Policies/procedures

Recruitment Selection Training

Motivation/reward systems

Management styles Career paths

Corporate culture

Corporate culture

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Recruitment

• Expatriates• Ethnocentric approach• Polycentric approach• Regiocentric approach• HCN• TCN• Geocentric approach• Inpatriate

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Reasons for expatriate failure

• Inability of the manager's spouse to adjust to a different physical or cultural environment

• The manager's inability to adapt to a different physical or cultural environment

• Other family-related problems• The manager's personality of emotional immaturity• The manager's inability to cope with the

responsibilities posed by overseas work• The manager's lack of technical competence and• The manager's lack of motivation to work overseas

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International assignments

• Length and duration:– Short-term– Extended– Long-term

• Types:– Commuter– Rotational– Contractual– Virtual

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Selection

• 4 different types of employees are normally appointed to overseas positions:– The chief executive officer (CEO), whose

responsibility is to oversee and direct the entire foreign operation;

– The functional head, whose job is to establish functional departments in a foreign subsidiary;

– The troubleshooter whose function is to analyse and solve specific operational problems; and

– The operative, or rank and file

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Selection (continued)

• Adaptability• Diplomacy• Language ability• Communication skills• Managerial talent• Maturity & emotional

stability• Leadership skills• Cultural sensitivity• Technical knowledge

• Experience within the company

• Interest in overseas work

• Initiative and creativity

• Previous overseas experience

• Age• Stability of marital

relationship• Spouse’s and family’s

adaptability

Factors to be considered when selecting candidates for overseas appointments:

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Induction

• Traditional people involved still remains valid

• Need for additional background information (eg. cultural practices, language etc.)

• For longer projects local induction is also important

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Training & Development

• Preparation of expatriates:– Training of expatriates before, during

and after foreign assignments– Orientation and training of expatriate

families before, during and after foreign assignments

– Development of the headquarters staff responsible for the planning, organisation and control of overseas operations

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Training & Development (continued)

• Techniques are categorised into 5 groups:– Area studies or documentary

programmes – Cultural assimilation – Language preparation – Sensitivity training – Field experiences

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Training & Development (continued)• Many companies neglect T&D of expatriates

for the following reasons:– Training is not thought to be effective– The period of time between selection &

expatriate's departure is short, leaving little time to expose him or her to in-depth training prior to departure

– The temporary nature of most assignments does not warrant budget expenditures for training

– The individual dimensions needed for successful acculturation are not well enough known to devise sound training programmes

– There is a belief that technical skills are the main success factors for assignments abroad

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Performance appraisal• Performance appraisal (PA) is a

fundamental management tool that can be useful as a basis for functions such as:– Making administrative decisions regarding

personnel actions (eg. promotions and transfers and support for taking disciplinary actions or terminations);

– Providing feedback to employees regarding their performance;

– Coaching employees in improving areas of weakness and building upon their areas of strength

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Performance appraisal (continued)

• Value of PA can be increased by planning, ongoing performance monitoring and employee development

• Cultural issues• Choice of evaluator• Evaluator’s amount of contact with the

expatriate• Host country’s management perception

of performance• Long-distance communication• Inadequate establishment of

performance objectives

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Retention of personnel

• Compensation• Repatriation

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Labour relations

• Approaches to follow:– Hands-off– Monitor– Guide and advise– Strategic planning– Set limits and approve exceptions– Managed totally from headquarters– Interface of headquarters, international

human resource and line management in the field

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Discipline & dismissals

• Differ in countries• Compensation• Companies should be well

acquainted with the legal implications of international staff

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Transfers, lay-offs and retirement

• Movement of people as part of development

• Cultural differences and language• Legal implications

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Health, safety & security issues

• Ensure that the employees have a record of their vaccinations against infectious diseases

• Include on over-the-counter first aid kit - this is very popular with South African executives travelling into Africa

• Arrange emergency plans in cases where employees have no local medical facilities, for example, flying them out by private plan

• If employees are staying in countries that are not very safe, companies should provide floodlights around the offices and homes, as well as electronic safety systems

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Global HRISs

• Development• Labour unions• Staffing flow• Reward systems

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Summary• Globalisation of business continues to grow after

1994 when South Africa became a full member of the international community again.

• Organisations doing business internationally may evolve from organisations engaged in exporting activities to multinational enterprises, global and transnational organisations.

• Legal, political, economic and cultural factors influence global HR management.

• One scheme for classifying national cultures considers power distance, individualism masculinity/feminity, uncertainty avoidance and long-term orientation.

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© 2006 Thomson Learning

Summary• Staffing global jobs can be done using

expatriates, host-country nationals and third country nationals.

• Global assignments can be used for a number of reasons and for varying durations.

• The selection of employees should consider cultural adjustment, organisational requirements, personal characteristics, communication skills and personal/family factors.

• Once selected, the assignments of global employees must be managed through both effective expatriation and repatriation.

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Summary• Training and development for employees focus

on pre-departure orientation and training, continued employee development and readjustment training for repatriates.

• Compensation practices for employees are much more complex than those for domestic employees because of the numerous factors to be considered.

• To balance the pros and cons of home-country and host-country evaluations, performance evaluations should combine the two sources of appraisal information.

• Labour-management relations vary from country to country.

• Global organisations must be concerned about the health, safety and security of their employees. Human Resource Management in South Africa 3/e

by Grobler, Wärnich et al ISBN 1-84480-328-7© 2006 Thomson Learning

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