BBA HONS - Contemporary Human Resource Management

Bachelor of Business
Administration
Honours
CONTEMPORARY HUMAN RESOURCE

MANAGEMENT
Module Guide
Copyright© 2024
MANCOSA
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machines, without the written permission of the publisher. Please report all errors and omissions to the following email
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Bachelor of Business
Administration Honours
CONTEMPORARY HUMAN RESOURCE MANAGEMENT
Preface.................................................................................................................................................................... 2
Unit 1: Introduction to Human Resource Management ........................................................................................... 9
Unit 2: The Strategic and Operational Role of HRM in an Organisation ............................................................... 34
Unit 3: Human Resource Strategy and Business Strategy.................................................................................... 57
Unit 4: Talent Planning And Workforce Planning .................................................................................................. 75
Unit 5: Recruitment and Selection......................................................................................................................... 99
Unit 6: Training Needs Analysis .......................................................................................................................... 124
Unit 7: Compensation Systems ........................................................................................................................... 142
Unit 8: Performance Management and Appraisal ............................................................................................... 159
Unit 9: Labour Legislation in the HRM Environment ........................................................................................... 177
Answers to Revision Questions .......................................................................................................................... 198
References.......................................................................................................................................................... 206
i
Contemporary Human Resource Management
List of Contents
List of Tables
Table 2.1: HR as a business with Three Product Lines - Source: Noe et al. (2019); 7) ........................................ 13
Table 4.1: Developing, formulating and implementing the workforce strategy ...................................................... 90
Table 5.1: Factors influencing recruitment .......................................................................................................... 102
Table 5.2 Advantages and disadvantages of internal and external recruitment.................................................. 107
Table 5.3: The factors influencing selection ........................................................................................................ 114
Table 7.1: The elements of total compensation .................................................................................................. 145
List of Figures
Figure 2.1: The Scientific Context of HRM ............................................................................................................ 36
Figure 2.2: HRM’s roles in building a competitive advantage ............................................................................... 39
Figure 2.3: The elements of talent management .................................................................................................. 44
Figure 3.1: Strategic Alignment (Nel and Werner, 2018). ..................................................................................... 63
Figure 4.1: Strategic HR Planning and Organisational Strategies ........................................................................ 85
Figure 5.1: Steps in the Recruitment Process .................................................................................................... 101
Figure 5.2: Generation Cohorts .......................................................................................................................... 112
Figure 5.3: Steps in the Selection Process ......................................................................................................... 115
Figure 6.1: Key steps in Conducting training-needs analysis (Meyer, 2017). ..................................................... 131
Figure 7.1; A model for a new compensation system (Nel and Werner, 2018) ................................................... 147
1 MANCOSA – Bachelor of Business Administration Honours

Preface
A. Welcome
Dear Student
It is a great pleasure to welcome you to Contemporary Human Resource Management (CHRM8). To make sure
that you share our passion about this area of study, we encourage you to read this overview thoroughly. Refer to
it as often as you need to since it will certainly make studying this module a lot easier. The intention of this module
is to develop both your confidence and proficiency in this module.
The field of Contemporary Human Resource Management is extremely dynamic and challenging. The learning
content, activities and self- study questions contained in this guide will therefore provide you with opportunities to
explore the latest developments in this field and help you to discover the field of Contemporary Human Resource
Management as it is practiced today.
This is a distance-learning module. Since you do not have a tutor standing next to you while you study, you need
to apply self-discipline. You will have the opportunity to collaborate with each other via social media tools. Your
study skills will include self-direction and responsibility. However, you will gain a lot from the experience! These
study skills will contribute to your life skills, which will help you to succeed in all areas of life.
Please note that some Activities, Think Points and Revision Questions may not have answers available,
where answers are not available this can be further discussed with your lecturer at the webinars.
We hope you enjoy the module.
MANCOSA does not own or purport to own, unless explicitly stated otherwise, any intellectual property rights in or
to multimedia used or provided in this module guide. Such multimedia is copyrighted by the respective creators
thereto and used by MANCOSA for educational purposes only. Should you wish to use copyrighted material from
this guide for purposes of your own that extend beyond fair dealing/use, you must obtain permission from the
copyright owner.
MANCOSA – Bachelor of Business Administration Honours 2

B. Module Overview
• The module is a 15 credit module at NQF level 8
Course Overview
The broad areas covered by this module include: The purpose of this module is to help you explore the field of
Contemporary Human Resource Management which is extremely dynamic as well as challenging. This module
thus provides you with the opportunity to explore the latest developments in the field of Contemporary Human
Resource Management and discover the ways in which it is practiced today. The module guide as such, has been
designed to facilitate an easy understanding of the module and allow you the opportunity to integrate the theoretical
concepts from the prescribed textbook and the recommended readings
C. Exit Level Outcomes and Associated Assessment Criteria of the Programme
Exit level outcomes of the programme (ELOs) Associated Assessment Criteria (AACs)
• Develop an understanding of a broad range of • Management functions and management practices

management functions and their integration, and are examined to understand key management
the critical examination of management practice functions
• Develop key transferable skills with applications • Management application from a strategic perspective
in management from a strategic perspective is discussed to develop key management skills and its
application
• Demonstrate the ability to apply conceptual and • Conceptual and analytical frameworks are evaluated
analytical frameworks within different to apply key management skills within various
organisational management conditions organisational management conditions
• Apply creative and critical thinking in solving • Business related problems are analysed to facilitate
business-related problems creative and critical thinking in solving business
related problems
• Attain personal and team goals using individual • Personal and team goals are explored using individual
and interpersonal skills and interpersonal skills
• Demonstrate awareness of ethical and global • Ethical and global issues in business are investigated
issues in business to create an awareness of them
• Identify and solve problems in which responses • Problem and decision making initiatives are explored
display that responsible decisions using critical to enable responsible business decisions
and creative thinking have been made

• Develop business policies and strategies for • Business policies and strategies are discussed to
organisations to meet stakeholder requirements enable their development for organisations to meet
stakeholder requirements
• Organise and mobilise the resources of the • The resources within an organisation are explored in
organisation to achieve strategic goals and order to enable organisation and mobilisation of them
targets to achieve strategic goals and targets
• Use science and technology effectively and • The effective use of science and technology to
critically, showing ethical responsibility towards facilitate ethical responsibility towards the
the environment and the health/well-being of environment and wellbeing of others is explored
others
• Develop conceptual and applied entrepreneurial • Entrepreneurial skills are evaluated to enhance
skills development of conceptual and applied
entrepreneurial skills
D. Learning Outcomes and Associated Assessment Criteria of the Module
LEARNING OUTCOMES OF THE MODULE ASSOCIATED ASSESSMENT CRITERIA OF THE MODULE
• Explain the sphere of responsibility of • The sphere of responsibility of human resource

human resource management management is explored to understand its dynamics
• Examine the strategic and operational role • Strategic and operational role of human resource
of human resource management in an management in an organisation is evaluated to enable its
organisation contextualisation
• Assess the relationship between a human • The relationship between human resource strategy and
resource strategy and business strategy business strategy is critiqued to gain an understanding of it
• Analyse movements of employees into • Employee movements into and out of an organisation is
and out of an organisation examined in order gain an insight into employee movement
• Outline the recruitment and selection • Recruitment and selection processes are explored in order
process to be knowledgeable about them
• Illustrate training needs analyses • Training needs analysis is illustrated in order to be able to
undertake it
• Illustrate an appropriate compensation • Compensation systems for small enterprises is interrogated

system for a small enterprise to facilitate development of appropriate systems

• Differentiate between various • Various performance appraisal techniques and their uses to
performance appraisal techniques and understand the differences between them
their uses
• Determine basic benefits and services for • Basic benefits and services for employees is examined to
employees gain an insight about them
• Illustrate the impact of labour legislation in • The impact of labour legislation in the human resource
the human resource environment of the environment of the enterprise is investigated to understand
enterprise the dynamics involved
E. Learning Outcomes and the Associated Assessment Criteria of the Units

The Unit Learning Outcomes and Associated Assessment Criteria lists an overview of the areas you must
demonstrate knowledge in and the practical skills you must be able to achieve at the end of each Unit lesson in
the Module Guide.
F. Notional Learning Hours
Learning
Types of learning activities time
Lectures/Workshops (face to face, limited or technologically mediated) 10
Tutorials: individual groups of 30 or less 0
Syndicate groups 0
Practical workplace experience (experiential learning/work-based learning etc.) 0
Independent self-study of standard texts and references (study guides, books, journal articles) 65
Independent self-study of specially prepared materials (case studies, multi-media, etc.) 20
Other: Online 5
TOTAL 100

G. How to Use this Module

This Module Guide was compiled to help you work through your units and textbook for this module, by breaking
your studies into manageable parts. The Module Guide gives you extra theory and explanations where necessary,
and so enables you to get the most from your module.
The purpose of the Module Guide is to allow you the opportunity to integrate the theoretical concepts from the
prescribed textbook and recommended readings. We suggest that you briefly skim read through the entire guide
to get an overview of its contents. At the beginning of each Unit, you will find a list of Learning Outcomes. This
outlines the main points that you should understand when you have completed the Unit/s. Do not attempt to read
and study everything at once. Each study session should be 90 minutes without a break.
This module should be studied using the prescribed and recommended textbooks/readings and the relevant
sections of this Module Guide. You must read about the topic that you intend to study in the appropriate section
before you start reading the textbook in detail. Ensure that you make your own notes as you work through both the
textbook and this module. If you do not have the prescribed and recommended textbooks/readings, you must make
use of any other source that deals with the sections in this module. If you want to do further reading and want to
obtain publications that were used as source documents when we wrote this guide, you should look at the reference
list and the bibliography at the end of the Module Guide. In addition, at the end of each Unit there may be link to
the PowerPoint presentation and other useful reading.
H. Study Material
The study material for this module includes programme handbook, this Module Guide, a list of prescribed and
recommended textbooks/readings which may be supplemented by additional readings.
I. Prescribed and Recommended Textbook/Readings

The prescribed and recommended readings/textbooks presents a tremendous amount of material in a simple,
easy-to-learn format. You should read ahead during your course. Make a point of it to re-read the learning content
in your module textbook. This will increase your retention of important concepts and skills. You may wish to read
more widely than just the Module Guide and the prescribed and recommended textbooks/readings, the
Bibliography and Reference list provides you with additional reading.
The prescribed and recommended textbooks/readings for this module are:
Prescribed Reading/Textbook

• Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M. (2019) Human Resource Management - Gaining a
Competitive Advantage. Eleventh Edition. New York: McGraw-Hill.
• Nel, P.S., Werner, A., Botha, C., Ngalo, O., Poisat, P., van Hoek, L., Chinyamurindi, W. and Dodd, N. (2018)
Human Resource Management. Tenth Edition. Southern Africa: Oxford University Press.
Recommended Readings
• Wärnich, S., Carrell, M.R., and Hatfield, R.D. (2022). Human Resource Management in South Africa. Seventh
Edition. United Kingdom: Cengage.
• Dessler, G. (2023). Human Resource Management. Seventeenth Edition. United States of America:
Pearson.
J. Special Features
In the Module Guide, you will find the following icons together with a description. These are designed to help you
study. It is imperative that you work through them as they also provide guidelines for examination purposes.
Special Feature Icon Explanation
LEARNING The Learning Outcomes indicate aspects of the particular Unit

OUTCOMES you have to master.
The Associated Assessment Criteria is the evaluation of the

ASSOCIATED students’ understanding which are aligned to the outcomes. The
ASSESSMENT Associated Assessment Criteria sets the standard for the
CRITERIA successful demonstration of the understanding of a concept or
skill.
A Think Point asks you to stop and think about an issue.

THINK POINT Sometimes you are asked to apply a concept to your own
experience or to think of an example.
You may come across Activities that ask you to carry out specific
tasks. In most cases, there are no right or wrong answers to these
ACTIVITY
activities. The purpose of the activities is to give you an
opportunity to apply what you have learned.

At this point, you should read the references supplied. If you are
READINGS unable to acquire the suggested readings, then you are welcome
to consult any current source that deals with the subject.
PRACTICAL
Practical Application or Examples will be discussed to enhance
APPLICATION
understanding of this module.
OR EXAMPLES
You may come across Knowledge Check Questions at the end of

KNOWLEDGE
each Unit in the form of Knowledge Check Questions (KCQ’s) that
CHECK
will test your knowledge. You should refer to the Module Guide or
QUESTIONS
your textbook(s) for the answers.
You may come across Revision Questions that test your

REVISION understanding of what you have learned so far. These may be
QUESTIONS attempted with the aid of your textbooks, journal articles and
Module Guide.
Case Studies are included in different sections in this Module

CASE STUDY Guide. This activity provides students with the opportunity to
apply theory to practice.
You may come across links to Videos Activities as well as

VIDEO ACTIVITY
instructions on activities to attend to after watching the video.

Unit
1: Introduction to Human Resource
Management

Unit Learning Outcomes
CONTENT LIST LEARNING OUTCOMES OF THIS UNIT:
1.1 Introduction • Introduces topic areas of the unit
1.2 Human Resource Management Practices • Provides an overview of the different HRM practices
1.3 Role of the HR Department • Describes the role of the HRM department
1.4 Strategic Role of the HRM function • Explains the strategic role associated with the HRM
function
1.5 Responsibilities for HR functions • Outlines the various responsibilities for the respective
HR functions
1.6 Current Issues and Challenges Facing • Examines the challenges and issues facing HRM
HRM currently
1.7 Summary • Summarises content areas of the unit
Prescribed and Recommended Textbooks/Readings

Prescribed Reading(s)
• Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M. (2019) Human
Resource Management - Gaining a Competitive Advantage. Eleventh
Edition. New York: McGraw-Hill.
• Nel, P.S., Werner, A., Botha, C., Ngalo, O., Poisat, P., van Hoek, L.,
Chinyamurindi, W. and Dodd, N. (2018) Human Resource Management.
Tenth Edition. Southern Africa: Oxford University Press.
Recommended Reading(s)
• Wärnich, S., Carrell, M.R., and Hatfield, R.D. (2022). Human Resource
Management in South Africa. Seventh Edition. United Kingdom:
Cengage.
• Dessler, G. (2023). Human Resource Management. Seventeenth
Edition. United States of America: Pearson.

1.1 Introduction
The role of human resource management (HRM) within organisations has changed dramatically over recent
decades, even more so during the last 18 months as a result of the Covid-19 pandemic and the subsequent
lockdown restrictions which only further accelerated its evolution. Having previously excluded HRM from
participating actively in business decisions for most of its existence, organisations now require HRM to play an
active role in the challenge to be successful and remain competitive. The human resource management (HRM)
department is now considered to be a strategic business partner of the organisation and not just an administrative
function as was traditionally perceived.
Due to the rapid changes that have taken place within organisations, as well as the role of HR professionals, very
few successful businesses can continue to rely on past policies and practices that have become outdated and
obsolete, and their HR professionals can ill afford to continue to be functional experts. Management and HR
professionals must become partners in decision-making and share accountability for organising the work to be
performed (Grobler et.al, 2017). Changes are and will continue to occur as a result of shifts and innovations in
technology, politics, economics and social dynamics which all have an impact on every functional area of an
organisation.
Think Point 1.1

Consider the plethora of changes that most organisations have experienced
over the past decade as a result of macro environmental shifts pertaining to
factors such as technological development
What further changes can you envisage in the next decade as technology
continues to be developed, innovated, and enhanced?
1.2 Human Resource Management Practices

Human Resource Management (HRM) refers to the development and application of policies, systems, practices
and procedures that direct the thinking, attitudes and behaviour of people in the organisation towards performance
to support the vision and short and long term objectives of the organisation, while at the same time satisfying
personal needs (Nel et al., 2018). There are several important HR practices in an organisation. Effective HRM
practices support the business goals and objectives as they are strategic in nature. The strategy underlying these
practices need to be considered to maximise the influence on organisational performance. According to Noe et al.
(2019) HRM practices include:
• Analysis and design of work

• HR planning

• Recruitment and selection

• Training and development
• Compensation and performance management
• Employee relations
Effective HRM can enhance organisational performance by contributing to employee and customer satisfaction,
innovation, productivity and the development of a favourable reputation in the organisation’s community. The
potential role of HRM in organisational performance has only recently been recognised (Noe et. al, 2019).
Knowledge Check Questions 1.1

Answer the following True or False questions:
1. Human Resource Development refers to the development and
application of policies, systems and practices?
2. Effective HRM practices are operational?
3. Compensation and performance management are considered as
human resource practices?
4. Short- and long-term objectives of the organisation satisfy personals
need?
5. Effective HRD enhances organisational performance by contributing
to employee and customer satisfaction?
1.3 Role of the HR Department

The primary task of the HR department is to ensure that the organisation’s human resources are utilised and
managed as effectively as possible within the ever-changing business environment. HR administrators help design
and implement policies and programmes that enhance human abilities and improve the organisation’s overall
effectiveness (Wärnich et. al, 2018). According to Noe et. al, (2019) many different roles and responsibilities can
be performed by the HR department depending on the size and nature of the company, the characteristics of the
workforce, the industry and the value system of organisational management.
The HR department should take full responsibility for human resource activities but may share the roles and
responsibilities with managers of other departments such as finance, supply chain, or information technology. One
way to think about the roles and responsibilities of HR departments is to consider HR as a business within the
organisation with three distinct product lines as can be seen below:

1Table 2.1: HR as a business with Three Product Lines - Source: Noe et al. (2019); 7)
Administrative Services and Business Partner Strategic Partner:

Transactions: Services:
• Compensation, hiring and staffing • Developing effective • Contributing to business strategy
HR systems and based on considerations of human
helping to implement capital, business capabilities,
business plans and readiness and developing HR
talent management practices as strategic differentiators
Emphasis: Emphasis: Emphasis:

• Resource efficiency and service • Knowing the business • Knowledge of HR and of the
quality and exercising business, competition, the market
influence via problem and business strategies
solving in addition to
designing effective
systems to ensure
needed competencies
1.3.1 The HR Function and The Success of an Organisation

Organisations wishing to remain competitive in today’s rapidly changing global marketplace need to address the
issue of achieving productivity through their employees. According to Wärnich et.al, (2018) successful growth
organisations were able to utilise the HR function to solve problems and achieve success in the following ways:
• Having the HR directors report directly to the general manager
• Placing major emphasis on employee recruitment, selection and training
• Using team building and creating an environment of rapid decision-making at lower levels
• Communicating key organisational performance objectives through all programmes and linking them to
goals at all levels
• Include HR planning as part of management’s strategic planning
• Involving line managers and working with them in a team to manage employees more effectively
• Using technology to assist where appropriate
Think Point 1.2

Consider how the role of human resource management has changed during
the last 18 months as a result of the Covid-19 pandemic with some
organisations still preferring to have employees working remotely to adhere
to social distancing and lockdown regulations
Do you think that post pandemic, organisations will still opt to have their
employees working remotely? If so, why?

1.3.2 HR Policies
HR policies are guides to management’s thinking as they assist management to achieve the organisation’s HR
objectives. Policies help define acceptable and unacceptable behaviour and establish the organisation’s position
on an issue. Top HR officials are usually responsible for policymaking which may be drafted by a HR committee
for approval by the CEO. To ensure complete effectiveness, HR policies should be in writing and communicated
to all employees and be readily available through a policy manual (Wärnich et.al, 2018).
Activity 1.1
Draft a recruitment policy for an organisation by make sure that all the key
components of a policy are included
[Hint: Ensure that the policy has provisions pertaining to Covid-19 regulations
and restrictions and is reflective of what will mostly likely be found in
organisations throughout the world today]
1.3.3 Wellness and Employee Assistance Programmes

Wellness programs are an excellent means to improving the health of employees, and subsequently, the overall
health of the organisation. Wellness programs are those initiatives that are aimed at enabling employees make the
right choice at work for improving their physical and mental health. Typical elements of a wellness program include
provisions for meditation to alleviate stress, making the right plan for nutrition, providing advice, and adequate
space for fitness activities.
Wellness programs should not be mistaken for health insurance or other medical benefit policies in the
organisation. Wellness programs can consist of steps that management takes to address specific health issues
relating to work. Addressing occupational hazards, for example, can be a major wellness program item. In many
organisations, wellness programs are a major investment, as employees’ health is an important factor in helping
increase productivity. Higher productivity is brought about when employees enjoy a healthy state of mind and body.
The result of this is that there is reduced absenteeism in the organisation. A healthy employee is, after all, an
organisation’s asset.
Think Point 1.3

Decide on whether and why you think employee assistance programmes or
wellness programmes add value to both organisations and employees in
today’s modern-day work environment which is extremely fast paced?
[Hint: Consider the greater levels of awareness that have been generated
over the past decade pertaining to mental health and overall employee
wellness]


1. The primary task of the HR department is to ensure that the
organisation’s human resources are utilised and managed as
effectively as possible within the ever-changing business
environment?
2. Processes help define acceptable and unacceptable behaviour and
establish the organisation’s position on an issue?
3. Examples of other functional areas of an organisation are marketing,
finance and information technology?
4. Wellness programs are those initiatives that are aimed at enabling
employees make the right choice at work for improving their physical
and mental health?
5. Wellness programs are a minor investment, as employees’ health is
not an important factor in helping increase productivity
Activity 1.2
Envisage that you have been tasked by your HR manager do develop a
series of employee wellness programmes and related activities. Describe
practical exercises would you adopt or recommend ensuring that they are
inclusive of most of the employees in the organisation?
[Hint: Bear in mind that any form of physical activity must be aligned with
current and existing lockdown regulations and social distancing protocols
such as the number of individuals allowed per session, curfew and proper
sanitisation facilities]
Case Study 1.1
SAPS should utilise employee assistance program, says Popcru

(27.11.2018)
Read the article and answer the questions that follow:
The union says in 2014 alone, 10% of the SAPS employees were treated with
depression, and between 2012 and 2015, 26% of all officers’ deaths were as
a result of suicide.

The Police and Prisons Civil Rights Union (Popcru) on Tuesday said it had
noted with sadness the regrettable shooting of two individuals at a Durban
Magistrate’s Court. This comes after a woman was allegedly shot dead by her
estranged husband during divorce proceedings in the Durban Magistrate’s
Court on Monday.
The off-duty police officer allegedly opened fire on his wife and her brother,
killing them instantly. He then turned the gun on himself and died later in
hospital. Popcru spokesperson Richard Mamabolo said: “It is understood that
the perpetrator was a police officer who was at the time appearing in the courts
on matters of divorce with his former wife. “While we abhor such actions of
killing, the matter around suicides within and amongst our police officers is at
an alarming level, and we are of the view that, among other urgent measures,
the Employee Health and Awareness program, otherwise known as Employee
Assistance Program within the South African Police Service (SAPS), should
be utilised to help as many police officers as possible.”
Mamabolo said the nature of the services provided by the SAPS was such that
police were faced with gruesome scenes on a daily basis, and this in many
instances led to conditions of persistent mental and emotional stress occurring
as a result of injury or severe psychological shock, typically involving
disturbance of sleep and constant vivid recall of the experience, with dulled
responses to others and to the outside world. “In 2014 alone, 10% of the SAPS
employees were treated with depression, and between 2012 and 2015, 26%
of all officers’ deaths were as a result of suicide; all these as a result of their
working conditions. “Since recognising the need to launch the Employee
Health and Wellness programs, then called Employee Assistance Programs,
the SAPS has had good policies in this regard, but has dismally failed to
implement them.”
He said most police officers did not utilise these services as they were of the
view that their representatives (psychologists and priests) were not doing what
they were supposed to do or did not understand their roles, lack confidentiality,
were reactionary in approach, did not revisit stations for assessments, and that
these services were stigmatised in the fear that some might not be promoted
to upper ranks.

“We urge the SAPS to speedily resolve and have these services fully
functional, credible and reducing post-traumatic stress disorder, especially
among our younger police officers who continue to be the most affected, and
this can be done by way of having scheduled police station visits, strict
measures governing confidentiality and increasing Employee Health and
Awareness so they become of service beyond affluent areas of our society,”
said Mamabolo.
Source: https://citizen.co.za/news/south-africa/2041959/saps-should-utilise-
employee-assistance-program-says-popcru/
QUESTION
Is the Employee Assistance Programme (EAP) a company benefit? Explain by
discussing what an EAP is and whether it is beneficial to the employees?
1.3.4 Administrative functions

The HR department performs important control functions for the management of human resources. Common
control activities include the following:
• Collection and analysis of hiring, selection, placement and promotion data to ensure that employment
equity laws and policies are being observed
• Analysis of performance appraisal records to determine if appraisals are being conducted in an
unbiased manner
• Analysis of statistics on absenteeism, grievances and accidents (and other HR metrics) to determine
where problems are most critical and what may be done to reduce them (Wärnich et.al, 2018)
1.3.5 Policies and procedures

HR must ensure that all these aspects are dealt with consistently and within the prescribed legislative requirements
through properly developed policies and procedures that are easily accessible to all employees through the HRIS
of the company (Wärnich et.al, 2018)
1.4 Strategic Role of the HRM function

The amount of time that the HRM function devotes to administrative tasks is decreasing, and its roles as a strategic
business partner, change agent, and employee advocate are increasing. HR managers face two important
challenges:
• Shifting their focus from current operations to strategies for the future
• Preparing non-HR managers to develop and implement human resource practices

To ensure that human resources contributes to the organisation’s competitive advantage, many HR departments
are organised based on a shared service model which can help control costs and improve the business relevance
and timeliness of HR practices. A shared service model is a way to organise HR functions that includes:
• Centres of expertise or excellence – include HR specialists in areas such as staffing or training who
provide their services companywide
• Service centres – are a central place for administrative and transactional tasks such as enrolling in
training programmes or changing benefits that employees and managers can access online
• Business partners – are HR staff members who work with business-unit managers on strategic issues
such as creating new compensation plans or development programmes for preparing high-level
managers (Noe et. al, 2019)
Video Activity 1.1
Watch: Strategic HR Your Secret Weapon in the Talent War

https://www.youtube.com/watch?v=1nosQA589Sw
Read: Why your business should give HR a seat at the table [webinar] by
Kathleen Quinn Votaw June 6, 2018.
https://www.vistage.com/research-center/talent-management/hiring-
recruitment-sourcing/20180605-business-case-strategic-integrated-human-
resources/
QUESTION
Considering how the HRM function has evolved over recent years and the
world of work that we find ourselves in today, discuss the importance of HR
as part of a strategic function?
1.5 Responsibilities for HR functions

The responsibility for performing the HR function does not reside solely with the HR department; all managers at
all levels of the organisation share in that responsibility. For example, the branch manager of a bank will normally
interview job applicants, orient new employees, train and develop new and current employees, evaluate employee
performance. In most organisations, particularly larger ones, the HR staff design HR policies and procedures and
the operating managers implement them.

On occasion, line managers help design HR polices and HR staffers help implement them; but the primary
responsibility for implementation of HR policies and procedures rest with those who are responsible for the day-
to-day supervision of subordinates. There are certain factors that tend to strengthen the standing of HRM, and
others tend to weaken it.
Practical Application or Examples 1.2

Read the article below and consider the questions:
#BizTrends2020: The evolving role of HR as a strategic partner
8 JAN 2020 BY:SANDRA CROUS
The role of HR within the business has come a long way. For many years the
HR person within a company was tasked with managing salary cost, ensuring
the right talent was attracted and managing performance. This would include
making sure that salaries align with turnover, and that employees are paid
according to their job grades, and the role they play within the business.
Because data was so static, HR found it difficult to really gain insights and
effectively use data intelligently.
Today, the role of HR when it comes to planning and driving strategic business
growth has become crucial to business success. We have seen HR undergo a
dynamic shift in its role, its functions, as well as its impact on the business.
These days, when we talk to new customers about their requirements for HR
and payroll systems, we need to consider how we can use data insights to help
them take their businesses to the next level.
No longer are we simply looking at solutions to manage salaries accurately, we

are looking for ways to identify emerging trends from the payroll and HR data.
To pinpoint these trends effectively requires using data intelligently with the
right technology. More businesses realise that by looking at the full lifecycle of
each employee, from inception to exit interview, they can get to insights about
the real reasons’ talent is difficult to retain, and how it impacts on the business.
Becoming more agile

There is tremendous pressure on businesses to become far more agile, and
this is particularly true of HR. On the one hand, this is a difficult concept to
grasp, because what does ‘agile’ really mean for HR?

It covers more than just salaries and benefits within an agile organisation, it
needs to look at future-proofing the organisation by looking beyond today’s
roles, to the roles of the future. It involves figuring out how to ensure the
business builds new skills, and those skills that will be needed in the future. It
is also about moving away from siloes, to cross-functional teams.
A major challenge for all HR managers is to become more agile in their

approach. This includes thinking differently about talent acquisition and looking
not only at candidates’ experience but their ability to support the strategic
growth of the business. Today, values, culture, and diversity of the business,
all need to be considered when hiring.
Then there’s the question of the role HR plays when it comes to uplifting their
workforce to become more skilled in what they do. At one time, we might have
suggested courses to grow their skills within their current role, but now we need
to worry about the skills they might need in a year or two. We need to be more
agile by looking into the future and shifting our focus to new skills and
capabilities.
Strategic role of HR
The role of the HR manager is becoming increasingly more strategic, to a level
where it is key to helping the organisation stay relevant. We realise that it’s
hard to get the right talent and hold on to it, and what we are seeing is a lot
more focus on putting the meaning of work back into work, by answering
questions such as how do we improve the employee experience and address
the ‘human experience’ within the business?
Reinventing the employee experience is a great way to attract the best talent,
particularly within a highly competitive market. Companies are doing different
things to get that right. Some give their employees the option to work remotely
or offer them the chance to experience cross-functional teamwork, to expand
their roles and skills within the business. This challenges employees and helps
them to embrace new skills.

Shift from tradition

All these trends point to the fact that jobs are becoming less traditional, and at
the same time, companies are generating masses of data they need to marry
with the business and challenges they face. Technology plays a large role too,
with game-changers such as artificial intelligence, which poses questions such
as how these technologies influence the role of employees and the
organisation. Moreover, the pace of change when it comes to technology is
unprecedented and moving faster than we can hope to keep up with, which is
also putting pressure on businesses and staff alike to embrace technology.
If we look at how payroll and HR has developed in South Africa, while

technology has made it possible to do almost anything. However, through
technology, which has simplified HR management, reporting and analytics, we
have seen improved accuracy and greater efficiencies within payroll and HR
departments, which have enhanced their strategic capabilities. And as
technology continues to evolve, HR’s role as a key, strategic partner of the
business, will evolve too.
Question:
Consider the strategic role of HR in organisations and evaluate this role in the
context of 4IR?
Source: Crous, S. 2020. The evolving role of HR as strategic

partner. [Online]. Bizcommunity. Available:
https://www.bizcommunity.com/Article/196/725/199501.html
[01 July 2020]

The global pandemic of COVID-19 has become a reality that has impacted on
all business functions in all types of organisations such as marketing, supply
chain, finance, information technology, and public relations.
Discuss its impact however, on the HR function in particular?

1.6 Current Issues and Challenges Facing HRM

According to (Wärnich et.al, 2018), traditional HR approaches that were conceived in cultures emphasising
command and control are giving way to new approaches characterised by greater employee commitment,
cooperation, and communication, coupled with changed expectations and the incorporation of new technology.
As such, some of the challenges facing HRM in South Africa include the following:
• Crime and corruption
This has a negative impact on the efficacy of recruitment, selection and induction practices in South African
organisations. Individuals are being hired in both the private and public sectors based on their political and social
affiliations, rather than their ability, skills, experience, and competency levels. We are currently experiencing and
witnessing the consequences of such practices at a provincial as well as national level, with poor service delivery,
cronyism, looting and nepotism destroying the very fabric of our democracy.
• Employee productivity and remote working

Productivity signifies the rate of output per unit of input. The phrase echoes an era where people were elements
in a production line, measured by the amount of time it would take them to produce a single item. But in today’s
knowledge-based economy, this measure of productivity no longer holds true, making it increasingly difficult to
evaluate people’s’ performance.
It’s challenging to measure knowledge-based workers purely by the output of their productivity. Quality is often
important, meaning that the sheer amount of time spent on a project or the final work delivered may not be directly
related to the person’s productivity. In today’s knowledge-based economy, if organisations focus solely on
measuring productivity as the volume of output of people’s work, they are likely to find themselves with a stressed
and disengaged workforce that feels misunderstood.
HR management is faced with the challenge of assessing, monitoring and evaluating employees working away
from an organisational environment which is a tedious task as they cannot observe the behaviour, mannerisms
and performance of employees. Since the pandemic gripped the world and subsequent lockdown restrictions have
been implemented, it has become increasingly challenging for the HR function of an organisation to accurately
judge and measure productivity of employees. They can only observe employees by using virtual applications such
as MS Teams, Zoom and Skype which cannot provide a true reflection of the output of employees.

• Brain drain
Individuals who are highly skilled, competent, knowledgeable, and experienced are leaving South Africa at an
alarmingly rapid rate. They are doing so to explore better employment opportunities and cultures in foreign
countries like the United Arab Emirates, Saudi Arabia, United States of America, Australia and England. In doing
so, they are leaving a massive void in the South African labour market with regards to human capital in industries
such as engineering, construction, finance, supply chain, medicine and teaching.
• Downsizing
Managers are increasingly under pressure to lower cost and improve productivity to maximise efficiency. Like other
functional departments, the HR department also is required to show financial results. The HR department is in a
dilemma to contain costs related to people since labour costs are one of the larger expenditures of any
organisation, particularly, in service-and knowledge-intensive firms.
Healthcare costs also pose a much bigger burden to organisations, especially in South Africa as there are a
plethora of issues contributing to sickness and disease. To contain operational costs, firms are resorting to many
activities such as downsizing, outsourcing, offshoring and employee leasing, which all have a big impact on HR
policies and practices. These activities can also result in worsening the country’s unemployment rate as many
individuals can be relieved from their duties.
Downsizing, instead of reducing costs, may backfire through the following hidden costs:
i. Severance and rehiring costs.
ii. Accumulated vacation and sick-day payments.
iii. Lump sum pension benefits.
iv. Loss of trust in the management resulting in reduced business.
v. Unavailability of skilled workers when the firm comes back to form.
vi. Potential lawsuits from terminated workers.
vii. Reduced productivity as the remaining workers are likely to be demotivated.
It is hard to get dedicated and productive workers when the company is known for terminating employees whenever
there is a problem. Downsizing signals that employees are expendable. There are organisations which consider
employees as assets and intellectual capital, making special efforts to reassign and retrain employees to new
positions when their jobs are eliminated.
• The changing workforce and diversity
With the 4IR workplace trends, post-apartheid labour legislation, and the increased advent of artificial intelligence
technology, workplaces in South Africa are now faced with a multi-generational workplace that has never been
seen before. Changing demographics is also creating a labour market in which multiple generations coexist. For
the first time in history, the silent generation, baby boomers, generation X, millennials, and generation Z are working
side by side

With more generations in the workforce than ever before, the workplace values and working styles are changing.
Understanding this multigenerational workforce and its implications will be essential for driving innovation, creating
united and productive teams, and adapting to the future workplace. Organisations must be aware of the aging
workforce, the multigenerational workforces that will be created as a result, and the possibilities and challenges
that age diversity in the workforce will bring.
The knowledge of how different generations can work together, and the ability to manage their collective
differences, opinions, thoughts, and respective ideologies will be a critical factor in achieving business success in
the medium to long-term future. The responsibility of achieving this as an ethos in any organisation will rest
predominantly with the HR department. Also, to take cognisance from a South African HR context, is the changing
role of females in society post-apartheid and the influx of foreigners through our borders searching for employment
opportunities.
• Globalisation
Many organisations are seeking business opportunities in global markets to grow and prosper as domestic markets
are shrinking. Globalisation is the trend towards opening foreign markets to international business and investment.
The impact of globalisation on business and HRM is enormous as competition and cooperation with foreign
companies has become an important focal point in the present business context.
For large companies, the vision is to offer customers anything, anytime, anywhere with many countries having
established free-trade agreements. Despite there being an improvement in the standard of living of people due to
globalisation, there is still the fear of loss of jobs as many well-known products and organisation losing their national
identities. People in developing countries fear that developed countries are exploiting their natural resources
resulting in panic and fear but corporates should be aware that being socially responsible is to operate in the best
interests of the people and communities affected by its activities.
Impact of Globalisation on HRM:

i. HR managers must balance a complicated set of issues related to different geographies, cultures,
employment laws and business practices.
ii. HR managers find it difficult to gauge the knowledge and skills of foreign worker and how to train them.
iii. The different languages and cultures of foreigners make things more complicated.
iv. It is a real challenge to relocate managers and workers.
v. Training managers on foreign cultures before they take up foreign assignments is time-consuming.
vi. There must be adjustment of compensation plans to ensure equity among the employees who are
posted to different parts of the world.

vii. The most different task is retaining the employees in the face of culture shock faced by the employees
and their families.
• Diversity
Workplace diversity refers to the variety of differences between people in an organisation. That sounds simple, but
diversity encompasses race, gender, ethnic group, age, personality, cognitive style, tenure, organisational function,
education, background and more. Diversity not only involves how people perceive themselves, but how they
perceive others.
Those perceptions affect their interactions. For a wide assortment of employees to function effectively as an
organisation, human resource professionals need to deal effectively with issues such as communication,
adaptability and change. Since South Africa is often referred to as the “rainbow nation”, it is obvious that HR
department will have to be methodical and calculated in its approach when managing diversity in the South African
workplace.
Video Activity 1.2

Watch the video: Managing Mental Health of Employees Working from
Home - Shashi Kalyanpur, and answer the questions?
https://www.youtube.com/watch?v=isKThhqSpbQ
Discuss the challenge HR faces with the wellbeing of employees having to
work from home during the COVID 19 pandemic?

1. The amount of time that the HRM function devotes to administrative
tasks is increasing as a result of technological integration and
innovation in the workplace?
2. Many HR departments are organised based on a shared service
model which can help control costs and improve the business
relevance and timeliness of HR practices?
3. Outsourcing means hiring someone outside the organisation to
perform tasks that could be done internally?
4. Covid-19 is an example of a micro factor or variable that is currently
negatively impacting businesses globally?
5. Diversity encompasses race, gender, ethnic group, age, personality,
cognitive style, tenure, organisational function, education,

background and more.
1.7 Summary
The section introduces the student to human resources from the holistic perspective of policies and processes in
the context of the evolving role of human resources and the organisation. It sets the scene for the evolving role of
HR and considerations of varying challenges as the face of organisations change amidst 4IR and a global
pandemic. The unit puts into perspective the administrative duties, strategic functions and the guiding role of
legislations.
Revision Questions
1. Outline the key human resource management functions in the

organisation at which you are or were employed?
2. Outline how successful growth organisations can utilise the HR

function to solve problems and achieve success?
3. Discuss the current challenges facing the discipline of HRM in South

Africa?

ANSWERS TO ACTIVITIES
Think Point 1.1:
There will be positive and negative consequences as a result of development in technology. From a positive
perspective, systems, processes and procedures will be further enhanced and improved as organisations apply
and develop the latest technological advancements within their respective industries. From a negative perspective
however, technological development will also result in a further increase in unemployment in many developing
nations as man is replaced by machine.
Knowledge Checks 1.1:

1. False: HRM
2. False: Strategic
3. True
4. True
5. False: HRM
Think Point 1.2:

Yes. Covid-19 has further accelerated certain HR practices such as the compressed work week and flexible
patterns of work. If organisations are achieving their financial targets and employees are working efficiently and
effectively, there is no reason as to why we will not see people continuing to work remotely.
Activity 1.1:
Recruitment Policy
The Recruitment Policy (hereinafter referred to as “the policy”) contains the policy of conduct observed by Ingersoll
Rand in the recruitment and selection process. The purpose of the policy is to provide a standard for the recruitment
and selection procedure. The policy is set up chronologically, from the time that the job becomes open for
recruitment to the date the position is filled. Ingersoll Rand (hereinafter referred to as “the company”) is committed
to employ, in its best judgment, suitable candidates for approved positions while engaging in recruitment and
selection processes that follow all applicable employment laws. It is the policy of Ingersoll Rand to provide equal
employment opportunity for employment to all applicants and employees.
Underlying Principles
The policy is based on the following underlying principles:
• The applicant will be chosen based on suitability with respect to the position
• The applicant will be informed on the application procedure and the details of the vacant position
• The company will request that the applicant provide only the information that is needed to assess
suitability for the position

• The applicant will provide the company with information it needs to form an accurate picture of the
applicant’s suitability for the vacant position
• The information provided by the applicant will be treated confidentially and with due care; the applicant’s
privacy will also be respected in other matters
• If an applicant submits a written complaint to the company, the company will investigate and respond to
the complaint in writing
• Due to the ongoing global pandemic, all interviews will be conducted online via Zoom, Skype or MS
Teams
• Successful incumbents may be asked to work remotely on advice provided by the company’s HRM
department
The policy applies to a procedure that is directed toward filling a vacancy within the company and for which the
recruitment of candidates takes place by a) public announcement, such as in advertisements in newspapers, radio,
state agency or internet, b) notice boards or internal recruitment and/or c) through employment agencies,
recruitment and selection agencies or executive search.
Position Information
Should the company decide that a vacancy exists or will exist and that it must be filled, it will prepare a job
description with the relevant details of the position. Waiver of the posting requirement may occur with Sector Vice
President of Human Resources approval. The job detail will include: the duties and responsibilities of the position,
the level/place of the position within the organisation, the nature of the employment (for example, temporary or
permanent), working hours and duration (for example part-time or shift work) and work location. Job requirements
may relate to professional competence (education, knowledge and experience) and skills.
Recruitment
In addition to the relevant job description, the job advertisement will state the method of application.
Selection Phase
The company will endeavour to notify the applicant within a reasonable time (normally within several weeks) after
the closing date for submission of applications:
• If the applicant has been rejected
• If the applicant has been invited for an interview
The company will ask questions on those aspects that are relevant to the position and/or job performance. The
applicant will provide the company with information that gives a true and fair picture of his/her professional
competence (education, knowledge and experience) and will not withhold information that he/she knows or ought
to know is important to the fulfilment of the vacancy for which he/she is applying.

The company will provide the applicant with a reasonable amount of information that the applicant needs in order
to be able to form as complete a picture as possible of the job vacancy and of the company.
Further Information
If the company requires further information from third parties and/or other sources about the applicant, it will request
the applicant’s prior consent, unless this is not required pursuant to a statutory or generally binding provision. The
intended information must be related to the position to be filled and may not disproportionably infringe upon the
applicant’s privacy.
Rejection and Completion of the Application Procedure

Should the company decide at any stage during the process that an applicant is not qualified to fill the position, the
company will endeavour to notify the applicant? The rejection will be in writing (by letter or by e-mail message).
The application procedure is concluded if the position has been filled or if the company has decided that the position
should be withdrawn. Only those persons who are still participating in the procedure will receive written notification.
All information, written or otherwise, received from an applicant will remain active for 60 days. The company
cleanses all applicant data three years after submission. All offers and agreements will be recorded in writing upon
position acceptance.
Complaints
The company will review all written complaints made by applicants and will respond to the applicants normally
within one month.
Think Point 1.3:

Yes. There has been closer scrutiny and greater awareness placed on employee well-being not just physically but
also mentally and psychologically. The toll of the fast paced technological era that most industries are operating in
increases the likelihood of employees experiencing mental fatigue, exhaustion and burnout and as a result,
organisations must cater for these adverse effects by initiating structures and programs that seek to assist and
take care of their staff in moments of difficulty. Employee assistance programmes or wellness programmes can
add value to both organisations and employees in today’s modern-day work environment.
Activity 1.2:
Depending on the level of lockdown restrictions that are in place at the time, organisations can implement various
activities aimed at stimulating physical and mental exercise including yoga sessions, meditations, virtual exercises,
recreational team building activities like football, volleyball, cricket, tennis and other employee preferential sport.
Board games like chess, scrabble, monopoly and 30 seconds can also be useful tools to distract employees from
their day to day work activities and provides a sense of relief from stress and anxiety.

Case Study 1.1:

An employee assistance program (EAP) is an employment benefit offered at no cost to employees. It provides
support to help resolve or manage problems that can interfere with an employee's ability to perform his or her work.
EAPs can help employees deal with serious health problem issues like depression, chronic fatigue, burnout,
anxiety, stress, cholesterol, high blood pressure, substance and alcohol abuse.
An employee assistance program (EAP) is a work-based intervention program designed to assist employees in
resolving personal problems that may be adversely affecting the employee's performance. EAPs traditionally have
assisted workers with issues like alcohol or substance abuse; however, most now cover a broad range of issues
such as child or elder care, relationship challenges, financial or legal problems, wellness matters and traumatic
events like workplace violence. Programs are delivered at no cost to employees by stand-alone EAP vendors or
providers who are part of comprehensive health insurance plans.
Services are often delivered via phone, video-based counselling, online chatting, e-mail interactions or face-to-
face. An EAP may also include a wide array of other services, such as nurse advice lines, basic legal assistance
or adoption assistance. EAP services are usually made available not only to the employee but also to the
employee's spouse, children and non-marital partner living in the same household as the employee.
EAPs add value in the following three ways
• EAPs leverage the value of the organisation's investment in its workforce by:
o Encouraging employee engagement
o Improving employees and their dependents' abilities to successfully respond to life challenges
o Offering employees and dependents short-term problem resolution services or referring them
to mental health treatment services
o Developing manager and employee competencies in dealing with workplace stress and
improving team performance
• EAPs address the cost of doing business by:
o Reducing workplace absenteeism and unplanned absence
o Decreasing workplace accidents and reducing healthcare costs
o Lowering employee turnover and related replacement costs
o Facilitating safe, timely and effective return-to-work for employees after short-term and
extended absence
o Increasing efficient use of health care via early identification, care management and recovery
efforts
• EAPs mitigate business risk by:
o Reducing the likelihood of workplace violence or other safety risks
o Managing the effect of disruptive incidents in the workplace, such as violence, injury or other
crises, and facilitate a swift return-to-work after adverse workplace events

o Supporting disaster and emergency preparedness and minimising disruption after such an
event
o Smoothing the adjustment to mergers, acquisitions, site closures or other workforce change
events
o Reducing the likelihood of legal action or liability

1. True
2. False: Policies
3. True
4. True
5. False: Major investment and employees’ health is an important factor in helping increase
productivity
Video Activity 1.1:

The focus of strategic HR is less about serving the best interests of employees and more about harnessing
and channelling human potential to benefit the business. Strategic HR still performs all the more transactional
responsibilities related to hiring, developing, and retaining employees. These tasks are inseparable from the
human resources function. What is different is that strategic HR no longer works in a silo. When it sets
performance expectations, establishes rewards programs, or determines benefits, a strategic HR department
works closely with other functional departments and outside advisors. Together, they make sure HR policies
and programs are integrated with other business strategies.
For example, a strategic HR department may work with operations to initiate partnerships with consortia and
networks. In this way, HR helps leverage the efforts of several companies in the same region or industry to
train specialised workers. Or, it could be that production is losing workers to competitors. Rather than posting
jobs in more places, a strategic HR organisation would work with them to determine what new workplace trends
or technologies might be put into place to increase retention.
Practical Application or Examples 1.1:

The impact that Covid-19 has had on the HR function throughout the world is significant. Employees working
from home, working “less” or “more” hours, measuring levels of productivity, time management, administering
pay, leave and other benefits, recruitment, selection, and induction have all undergone radical change
compared to how they were done previously. There has been a great deal of trust and integrity placed in
employees by the HRM department when it comes to executing and completing their work related task and
duties and thus, the strategic importance of this functional area has been further brought under the microscope
as organisations grapple with the impact of Covid-19.

Video Activity 1.2:

HR professionals have certainly not imagined the challenges that COVID-19 has dawned on them. The uncertainty
has crushed the economy, employees are in stressful situations, and HR professionals try their best to keep
everything in perspective and aligned. The sudden shift in work culture took a toll on overall employee health and
wellbeing. Stress, anxiety, and other mental health issues have always been there, and it is no new story.
When you have your workers working in an office work environment, you understand their pulse and sensitivity,
which helps you immensely tackle the issues but employees going remote, communication routes have been
significantly compromised, leaving the managers clueless or less conscious about the current physical and mental
state of their employees as their powers of observation and people management has been severely diminished.
The transition to remote work culture is not as seamless as it seems. Before the COVID-19 outbreak, less than
50% of companies had a remote work program.
In addition, banks, regulated industries, and many financial services companies did not encourage remote working.
Now almost all of them are rushing to build remote work strategies. This has led to many undiscovered problems
including job security, mental and social anxiety, hopelessness and overall disillusionment. HR managers are trying
to build seamless routes and strategies to overcome the challenges that it brings.
Strategies are no more designed periodically or in advance but in real-time. The focus on employee
productivity and engagement has shifted to immediate responses and diagnosis. To provide employees with the
right tools and gather real-time updates from them from time to time to untangle the intricacies and offer support.

1. False. decreasing
2. True
3. True
4. False. Macro social factor or variable
5. True

According to LeStrange (2016) a dynamic era of change in the world of work will introduce the Fourth Industrial
Revolution or Industrial Revolution 4.0, which will be shaped by a range of new technologies and innovations that
bring us driverless cars, smart robots, Virtual Reality (VR) for the digital world, the Internet of Things (IoT),
connected devices, artificial intelligence (AI) and 3D printing. Technology is a changing industry and according to
Professor Klaus Schwab, the Industrial Revolution 4.0 will bring new opportunities for work and have the potential
to connect billions more people to the web as well as drastically improve the efficiency of businesses. These new
technologies will impact all disciplines and industries, and even challenge us about what it means to be human.

The Industrial Revolution 4.0 will work faster than previous industrial evolutions due to the use of technology. The
biggest change will be in the form of how we work and the jobs we perform today, these will be taken over by
robots that will be directed by us, the workers. In most cases employees will require retraining and new training in
learning how to operate new applications, and the challenge for senior management is trying to keep up with the
new trends while running the business.
According to the Future of Jobs summary on the World Economic Forum “By 2020, more than one-third of workers
will need skills they don’t now have. While necessary talents can vary, 36% of business jobs will require “complex
problem solving” as a core skill.”
HR managers looking to ‘future proof’ their workforce should think about:

• Identifying the skills for your industry - Find out about the skillset in your workforce and what the
company lacks. Look to harness new digital skills amongst you current employees and look for these
skills when recruiting for new employees. As the digital world progresses, demand for employees with
strong tech, SEO, digital content and visual designer skills will grow. HR managers need to be aware of
specific roles that businesses across the country are struggling to fill so they can train current
employees now
• Asking yourself “Are you digitally-focused?” – Some organisations are already trailing 3D printers and
drones in order to get ahead of their competitors and keep up with the technological trends. Before
looking to attract new digital skilled talent, workforces should be digital focused themselves. Look at the
technology that is used in the workplace daily, printers, computers, and smartphones and ask
employees if they know how to use these gadgets and tech items. Perhaps it’s time to invest in trialling
new technologies and pave way for how your organisation may work in the future
Networking and interacting – Companies are changing the way they communicate with internal teams and
external clients; therefore, workplaces should invest in new forms of communication and collaboration in order
to give the management the necessary tools to coordinate virtual teams. With more choosing to work remotely,
a stronger interaction between HR, manager, and employees is required to ensure high levels of productivity
and creativity – keeping everyone engaged and connected. Emerging technology breakthroughs are now
occurring more than ever, the Fourth Industrial Revolution will bring with it technological advancements that
allow robots to perform many tasks faster and more efficiently than humans currently do daily. HR need to
increase their employee’s technological capabilities, train your human workforce so they expand their skillset -
as well as their management, creativity and emotional intellect which robots will not be able to imitate.

Unit
2: The Strategic and Operational
Role of HRM in an Organisation

2.2 The Context of HRM • Provides an overview of the context of HRM
2.3 The New Role of HRM • Describes the new role of the HRM department
2.4 HRM Focus Areas • Explains the various focus areas of HRM

Cengage.

2.1 Introduction
Traditionally, the HRM department (also previously known as “Personnel” or “Employee Relations”) was primarily
an administrative expert and employee advocate that took care of employee problems, made sure employees were
paid correctly, administered employment contracts and avoided legal problems. The HRM department ensured
that employee-related issues did not interfere with the manufacturing or sales of products or services. Human
resource management was primarily reactive in that human resource issues were a concern only if they directly
affected the business.
That remains the case in many organisations that have yet to recognise the competitive value of human resource
management, or among HR professionals who lack the competencies, skills or understanding needed to anticipate
problems and contribute to the business strategy. However, there are other organisations that believe HRM is
important for business success. These establishments have therefore expanded the role of HRM as a change
agent and strategic partner (Noe et. al, 2019).
2.2 The Context of HRM
1Figure 2.1: The Scientific Context of HRM

(Source: Nel et al., 2018, 3)
As depicted in Figure 2.1, it is evident that HRM is a very broad field incorporating scientific theory and practices
from various disciplines (Nel et al., 2018):
• Firstly, HRM originates from the study field of management, which is defined, when describing the
management discipline within the context of people, as the “process of coordinating and overseeing the
work activities of others so that their activities are completed efficiently and effectively”
• The second important discipline is psychology, the science that seeks to measure, explain and
sometimes change the behaviour of humans and other animals
• Sociology, the third discipline, is the study of people in relation to their fellow human beings and is of
great significance to organisational functioning especially in groups and regarding cultural aspects

• The fourth discipline, social psychology, is an area within Psychology that blends concepts from
Psychology and Sociology and focuses on the influence of people on one another
• Political science, the fifth discipline, is the study of the behaviour of individuals and groups within a
political environment
• Anthropology, the sixth discipline, is the science of humankind and the study of human behaviour
• Organisation behaviour refers to the behaviour of individuals and groups within an organisation as well
as the interaction between members of the organisation and their external environments
Think Point 2.1

Consider the various disciplines that are incorporated into the field of Human
Resource Management.
Which field do you think is most important for a HR professional to understand

to be better equipped to manage employees in this modern day of work and
socialisation?
As reflected in the diagram and discussed above, it is evident that HRM comprises of many focus areas that
interdependently and holistically, enable individuals, groups, teams, and the organisation to perform and excel.
The HR department must ensure legal compliance, amongst aspects in terms of the Basic Conditions of
Employment Act (No. 75 of 1997), Labour Relations Act (No. 66 of 1995) and Employment Equity Act (No. 55 of
1998). Over time, the field of HRM has become proactive in managing people in the long-term interest of the
business, where HRM is not the responsibility of only the HRM department.

From all the pieces of South African labour related legislation, which do you
consider to be the most important for effective HRM within the labour relations
landscape and why?

1. Traditionally, the HRM department was previously known as
“Personnel” or “Employee Relations”?
2. Psychology is defined as the “process of coordinating and
overseeing the work activities of others so that their activities are
completed efficiently and effectively”?

3. Organisational behaviour is the study of the behaviour of individuals

and groups within a political environment?
4. HRM is important for business success and has therefore expanded
its role as a change agent and strategic partner?
5. Social psychology is an area within psychology that blends concepts
from psychology and sociology and focuses on the influence of
people on one another?
2.3 The New Role of HRM

Due to the rapid changes that have taken place within the organisation as well as in the role of the HR professional,
to be successful the HR professional must, according to (Grobler et.al, 2017):
• Become involved with line managers in strategy formulation and implementation, resulting in the design
of HR strategies that will support the overall company strategy
• Become an expert in the way work is organised and executed
• Become involved in reducing costs through administrative efficiency while maintaining high quality
• Become a reliable representative for employees when putting their concerns to management
• Become an agent for continuous transformation, shaping processes and culture to help organisations
improve their capacity for change
Ulrich (1996) in his popular book Human Resource Champions, states that for HR professionals to be successful,
they will have to play at least four different roles;
• Strategic partner
• Administrative expert
• Employee champion
• Change agent
As Ulrich’s model has been successfully implemented by major corporations around the world (e.g. Hewlett-
Packard, General Electric, and Sears) it would be beneficial to take a closer look at his model.

Future/strategic focus (short-long term)
Processes Cell 1 Cell 3 People

Management of strategic human Management of transformation and
resources change
Deliverable/outcome Deliverable/outcome
Executing strategy Creating a renewed organisation
Activity Activity
Aligning HR and business strategy: Managing transformation and change:
‘Organisational ‘Ensuring capacity for change’
diagnoses’ Role
Role Change agent
Strategic partner
Cell 2 Cell 4
Management of strategic human Management of employee contribution
resources Deliverable/outcome
Deliverable/outcome Increasing employee commitment and
Executing strategy capability
Activity Activity
Re-engineering organisation Listening and responding to employees:
processes: ‘Shared services’ ‘Providing resources to
Role employees’
Administrative expert Role
Employee champion
Day-to-day/operational focus
2Figure 2.2: HRM’s roles in building a competitive advantage
(Source: Grobler et al., 2017)

According to Ulrich (1996), for HR professionals to be successful, they will
have to play at least four different roles, namely that of a strategic partner,
administrative expert, employee champion and change agent.
Critically discuss role, from these four mentioned, do you feel is the most
important from a HRM perspective?

Activity 2.1
Refer to the above excerpt and evaluate the Dave Ulrich model against
competitive advantage?
The Axes of Ulrich’s model in the Figure 2.2 represents two aspects:
• Focus (i.e. short-term and long-term)

• Activities (managing processes, HR tools and systems and managing people)
The HRM roles mentioned earlier are depicted in the four quadrants of the model. Each quadrant contains the
outcome of each role as well as the activities the HR professional is to perform.
Cell 1
The HR manager works to be a strategic partner by focusing on the alignment of HR strategies and practices with
the overall business strategy. By fulfilling this role (strategic partner) HR professionals increase the capacity of the
business to execute its strategies.
Cell 2
This role (Administrative expert) requires HR professionals to design and deliver efficient HR processes, e.g.
staffing, training, appraisal, rewarding and promotion. HR professionals must ensure that these organisational
processes are designed and delivered efficiently. This process is ongoing.
Cell 3
The third key role to be played by the HR professional (change agent) is management of transformation and
change. This entails making fundamental cultural changes within the organisation.

Cell 4
The employee-contribution role of HR professionals (Employee champion) encompasses their involvement in the
day-to-day problems, concerns, and needs of employees. For example, where intellectual capital becomes a critical
source of a company’s value, HR professionals should be active and aggressive in developing this capital. (Grobler
et.al.; 2017).
Thus, according to Grobler et.al (2017), by turning the four HRM roles into specific types of behaviour and actions,
a world-class HR organisation can be created. Being an HR professional does not mean simply moving from
operational to strategic work as the new challenges demand; it means learning to master both operational and
strategic processes and people by fulfilling multiple roles.
Video Activity 2.1

Dave Ulrich explains the role of the HR business partner in a digital age
(August 2019)
https://www.youtube.com/watch?v=n_yfSJ151JQ
Discuss the essence of the above video clip?

1. To be successful, the HR professional must become involved with
line managers in strategy formulation and implementation, resulting
in the design of HR strategies that will support the overall company
strategy?
2. A change agent requires HR professionals to design and deliver
efficient HR processes like staffing, training, appraisal, rewarding
and promotion?
3. A strategic partner focuses on the alignment of HR strategies and
practices with the overall business strategy?
4. A modern HR employee champion listens and responds to
an employee's personal needs and puts them first?
5. Operational plans tend to have a time period between one to five
years in duration or length?

2.4 HRM Focus Areas

HRM is a broad field and consists of many focus areas that interdependently and holistically enable individuals,
groups (teams) and the organisation to perform and excel. It shows that organisations and HRM itself, do not exist
in a vacuum, but are influenced by dynamic and interrelating environmental forces (Nel et al., 2018). The following
are considered some of the focus areas of HRM:
2.4.1 Employment and On-boarding

Employment involves planning for the right skills and competencies, recruiting people who fit the job requirements
as well as organisational values and then appointing them. If the wrong people are employed who do not buy into
the values of the organisation, it is unlikely that they will demonstrate their optimal potential. On boarding is the
process that starts from recruitment and employing a person until the person is fully functioning and integrated with
the organisational culture and represents the link between the promise of new employee talent and the realisation
of that talent into actual performance (Nel et al., 2018).
According to Noe et al. (2019) effective on boarding is related to many important outcomes for the employee and
the company including higher job satisfaction, organisational commitment, lower labour turnover, higher
performance, reduced stress and career effectiveness.
2.4.2 Talent Management

On boarding is a prerequisite for talent management. Once an employee has come on board, ongoing talent
management is important (Nel et al., 2018).
Talent management refers to the systematic planned strategic effort by a company to use bundles of human
resource management practices including acquiring and assessing employees, learning and development,
performance management and compensation to attract, retain, develop and motivate highly skilled employees and
managers. This means recognising that all HR practices are inter-related, aligned with business needs and help
the organisation manage talent to meet business goals (Noe et.al 2019).
Activity 2.2
A relevant article by Wilson (2019), discusses the impact of 4IR on talent
sourced from:
https://www.recruitment-international.co.uk/blog/2019/08/what-the-fourth-
industrial-revolution-means-for-talent-management
Identify any two learnings that you can come across from this article?

It is clear from the above that talent management may be viewed as the use on an integrated set of HRM activities
to ensure that an organisation attracts, retains, motivates and develops the talented people it needs now and in
the future.
Think Point 2.2

Read the following think point below
IBM’s on boarding programme, Succeeding @IBM, considers that many new

employees don’t spend much of their time in the office – they work at home,
on the road, and members of their work group are likely located around the
world. But new employees still need to quickly learn to perform their jobs, feel
comfortable, and develop a network of friends. The on boarding programme
includes both face to-face interactions and technology-based features that
help employees prepare for their job as well as plan for their careers.
It helps employees learn how their job relates to other IBM business units
and locations and is customised to address the needs of employees in
different types of jobs such as consultants, college graduates and managers.
Following a classroom experience on the first day new employees work
online to complete four different phases of on boarding. Discovering IBM
covers IBM’s values, history and businesses.
Share and Connect encourages new employees to collaborate with each

other and experienced employees for support, career guidance and technical
expertise. Grow My Career provides a roadmap for employees to use to
identify different learning and career paths within IBM. Find Support connects
new employees with mentors, career coaches, websites and other resources.
New employees can also use IBM’s instant messaging and have access to
an online employee directory that includes job descriptions, resumes, skills
and languages spoken and photos (Noe et.al, 2019).
Discuss whether you think such initiatives contribute positively towards talent
management?

In Figure 2.3 the elements of talent management and the interrelationships are shown.
3Figure 2.3: The elements of talent management

(Source: Grobler et al., 2017)
Proper planning is essential to ensure the availability of the right talent for the job at the right time.
According to Grobler et.al (2017) organisations that excel in talent management follow eight best practices:
• Define talent management broadly
• Integrate the various elements of talent management into a comprehensive system
• Focus talent management on the most highly valued talent
• Get CEOs and senior executives committed to talent-management work
• Build competency models to create a shared understanding of the skills and types of behaviour the
organisation needs and values in employees
• Monitor talent needs within the organisation to identify potential gaps
• Excel at recruiting, identifying and developing talent, as well as at performance management and
retention
• Regularly evaluate the results of the talent-management system

For talent management initiatives to be effective, organisations need formal processes as depicted in Figure 2.3,
with many people involved and with strong links between leadership and talent to translate into specific
organisational value-based behaviour. To tie all these activities together successfully, the leaders in HRM should
actively pursue several activities including, informing management and employees about why talent management
is important, how it works and what the benefits to the organisation are.
2.4.3 Self-managed work teams

As the term ‘self-managed’ implies, these teams within the work environment are responsible for determining what
they want to do, how they want to do it and when they want to do it. Teams are empowered to use their initiative
in solving problems and managing themselves. The advantage of these teams is that they can respond quickly to
the needs of a situation, which is of great importance for companies finding themselves in a turbulent environment.
Team members participate in decisions regarding who to hire for their teams, what equipment to purchase and
what training is necessary to operate the equipment. The HR professional would then play the role of coach or
counsellor or advisor to the team. For example, when hiring or selecting people for the company, the team
members play an important role in deciding whether the applicants will be good team members or not (Grobler
et.al, 2017).
Video Activity 2.2
Watch What is Talent Management in the link below:
https://www.youtube.com/watch?v=R7MYMVTQ_rg
Briefly describe what you think this HRM process is all about and what is its
main goal?
Think Point 2.3

Consider the establishment of self-managed work teams that are now
evolving into virtual teams and the reasons why virtual teams have become
so important.
2.4.4 Alternative workplace

The alternative workplace is an effort by HR management to transform the workplace by moving the work to the
worker instead of the worker to the work. It is a combination of non-traditional work-practices, settings and locations
that is beginning to supplement traditional offices (Grobler et.al 2017). Alternative work arrangements include
independent contractors, on-call workers, temporary workers and contract company workers (Noe et.al, 2019).
Virtual work is important because of its increasing prevalence because virtual organisations and virtual workers
may be key factors on the ‘new economy’. Variations on the alternative workplace include the following:

• Placing workers on different shifts or travel schedules. This enables them to share the same desk and
office space
• Replacing traditional offices with open-plan space
• Implementing the concept of ‘hoteling’. ‘Hotel’ workspaces are furnished, equipped and supported with
typical office services. These spaces can then be reserved by the hour, day or week instead of being
permanently assigned
• Creating satellite offices. Such offices are the result of breaking up large, centralised facilities into a
network of smaller workplaces that can be located close to customers or to employees’ homes
• Introducing telecommuting or virtual offices. This is one of the most recognised forms of alternative
workplace. Telecommuting – performing work electronically wherever the worker chooses, e.g. from
home – generally supplements the traditional workplace rather than replacing it (Grobler et.al, 2017)
Alternative work arrangements can benefit both individuals and employers. More and more individuals don’t want
to be attached to any one company. They want the flexibility to work when and where they choose. They may want
to work fewer hours to effectively balance work and family responsibilities (Noe et.al, 2019).
2.4.5 E-HRM and Knowledge Management

HR is increasingly playing a strategic role as business partner in the organisation and as such, adds value through
making high impact decisions. HR stays the custodian of HRM functions, policies, systems and processes, but it
also acknowledges the role others play in the collaborative effort of attaining strategic goals. It provides HR
executives, line managers and employees with HR information and knowledge that enable them to make sound
decisions.
The devolution of the HR function and dissemination of HR knowledge throughout the organisation with complete
online support for improved decision-making is labelled E-HRM (Nel et. al., 2018). E-HRM includes a wide range
of functions, ranging from something as simple as making a company’s HR policies and procedures available
through its intranet to managing the development and deployment of the company’s most strategic skills (Grobler
et.al 2017). Confusion may arise regarding the distinction between E-HRM and HRIS and therefore clarity must be
provided.
A Human Resource Information System (HRIS) refers to an information technology system, using intranet or web-
based systems, or even mobile device technology, to store and/or distribute HR information to designated users
at multiple access points. An HRIS can provide an organisation with a competitive advantage by increasing
productivity, reducing costs, and ensuring product quality. If the knowledge it produces is useful, accurate and
delivered timeously, then it allows the HR department to spend more time on strategic HR issues.

Therefore, an HRIS provides information, while E-HRM implies using this information to analyse various situations,
trends and changes and to make decisions that will support the attainment of the organisational mission. The HRIS
forms part of the organisation’s larger Management Information System (MIS) which includes accounting,
production, marketing and other functions. HR metrics on the other hand refers to measurements used to quantify
the cost and impact of HR processes, systems and initiatives such as employment, wellness and retention.
They enable the organisation to track year to-year trends and changes in critical HR variables. HR metrics reflect
the contribution that the HR department makes to the overall attainment of organisational goals (Nel et al., 2018).
Electronic human resource management, or E-HRM reflects a philosophy for the delivery of HR; it uses information
technology, particularly the Web, as the central component of delivering efficient and effective HR services.
Organisations embracing E-HRM do not simply use technology to support HR, rather they see technology as an
enabler for things to be done differently in the HR function by changing the manner in which information flows and
how social interaction and communication take place (Wärnich et.al, 2018).

1. Talent management refers to the many important outcomes for the
employee and the company including higher job satisfaction,
organisational commitment, lower labour turnover, higher performance,
reduced stress and career effectiveness?
2. Team members participate in decisions regarding who to hire for their
teams, what equipment to purchase and what training is necessary to
operate the equipment is an example of a self-managed work team?
3. The alternative workplace is an effort by HR management to transform
the workplace by moving the work to the worker instead of the worker to
the work and has become increasingly popular since the spread of
Covid-19?
4. Downsizing involves planning for the right skills and competencies,
recruiting people who fit the job requirements as well as organisational
values and then appointing them?
5. E-HRM includes a wide range of functions, ranging from something as
simple as making a company’s HR policies and procedures available
through its intranet to managing the development and deployment of the
company’s most strategic skills?

Case Study 2.1
Lolla Lighting
Read the article and answer the questions that follow:
Lolla lighting was established in Johannesburg in 1985. It specialises in indoor
and outdoor lighting for both domestic and industrial markets. Over the years,
the company has expanded its operations to all the major cities in South Africa
and has become quite a household brand. However, as the company grew it
became more complex and difficult to manage.
Customer started complaining about inferior quality and poor service, the
company received some bad publicity due to poor ethical practices, and profits
started plummeting. It became clear that different management practices were
used across the different branches which resulted in employee dissatisfaction
and high labour turnover. To deal with the HR problems in the company, the
executive management decided to appoint an experienced HR manager,
Rajesh Suvendran, to help turn the situation around.
Discussions with the executive management revealed that they focused more
on production and sales and were quite ignorant about HR issues. During the
first six weeks of his employment, Rajesh travelled to all the major branches
around the company to get first-hand experience of how things were done in
the company. Rajesh learned that not all branches used the same HR software,
and those who did have the same system did not use all the components of
the system in the same way.
For example, some branches dealt differently with issues such as employment,
disciplinary cases and the management of absenteeism. Two branches did not
have a HRIS at all. When he inquired about the absenteeism rate at a specific
branch, the managers were only able to say that it was high and were not able
to give any specifics.
At another branch, he received three totally different responses to the same

question. Rajesh also learned that the company had trouble attracting and
retaining people in key positions.

Ethics was another issue, but Rajesh realised that to get an accurate
impression of the level of ethics in the company, he would have to gather
information from organisational members on all levels, and from all units in the
organisation.
QUESTIONS
1. Respond to the following remark: “A new HRIS will sort out all the HR
problems in this organisation”?
2. Rajesh realises that he will have to implement a uniform HRIS at all the
branches. Considering that some branches used different software
programmes and that two branches did not have any HRIS at all, explain
the steps that Rajesh must follow to implement a uniform and acceptable
HRIS at Lolla Lighting?
3. Provide examples of HR metrics that can be used to measure HR
processes and trends in this company?
2.5 Summary
The unit provides an overview of the strategic roles and functions of human resources. It introduces concepts such
as e-HRM and HRIS as well as talent management. These are areas which are part of the new evolved human
resources function in contemporary organisations. The unit gives context to different workplace types and how the
way of work has changed. This is specifically important from lessons that we learnt during COVID-19 global
pandemic.

Revision Questions
1. Examine any organisation that you could potentially be employed at. Will
the organisation’s HR professionals be able to fulfil the role of strategic
partner or are they able to fulfil multiple roles in the organisation?
2. Identify the eight best practices followed by organisations that excel in
talent management?
3. Distinguish between E-HRM and HRIS in an organisation by also
highlighting the integration between these two systems?

Think Point 2.1:

Psychology as it deals with the study of the human mind and its functions, especially those affecting behaviour. It
is crucial for managers to not only be technical experts and specialists in their respective fields, but to also have
the ability to understand the behaviour of people within the work context. Psychology assists greatly with being
able to implement efficient people management techniques and methodology in the workplace.

The Basic Conditions of Employment Act 75 of 1997 as it gives effect to the right to fair labour practices referred
to in our constitution by establishing and making provision for the regulation of basic conditions of employment.
All employers and employees must abide by this critically important piece of legislation and if they do not, there
are serious consequences that they could face.

1. True
2. False. Management
3. False. Political science
4. True
5. True

Opinionated question so any of the answers below should be considered correct
A company or organisation that has an arrangement to work with or help another so that it is easier for each one
of them to achieve the things they want to achieve
Is a HR manager who ensures the efficient delivery of HR services to other members of the management team,
typically using information and communication technology?
• Change agent
A change agent is a person from inside or outside the organisation who helps an organisation transform itself by
focusing on such matters as organisational effectiveness, improvement, and development. A change agent usually
focuses his efforts on the effect of changing technologies, structures, and tasks on interpersonal and group
relationships in the organisation. The focus is on the people in the organisation and their interactions.

These are essential in challenging stigma and increasing understanding of mental health in their workplaces. They
are at the forefront of our fight to make it commonplace for employees to be able to say, “I’m struggling”, or “I need
support” in the workplace without the fear of negative consequences.
Activity 2.1:
Future/strategic focus (short-long term)
Processes Cell 1 Cell 3 People

Management of strategic human Management of transformation and
resources change
Deliverable/outcome Deliverable/outcome
Executing strategy Creating a renewed organisation
Activity Activity
Aligning HR and business strategy: Managing transformation and change:
‘Organisational ‘Ensuring capacity for change’
diagnoses’ Role
Role Change agent
Strategic partner
Cell 2 Cell 4
Management of strategic human Management of employee contribution
resources Deliverable/outcome
Deliverable/outcome Increasing employee commitment and
Executing strategy capability
Activity Activity
Re-engineering organisation Listening and responding to employees:
processes: ‘Shared services’ ‘Providing resources to
Role employees’
Administrative expert Role
Employee champion
Day-to-day/operational focus

The Axes of Ulrich’s model in the above figure represents two aspects:
• Focus (i.e. short-term and long-term)
• Activities (managing processes, HR tools and systems and managing people)
The HRM roles mentioned earlier are depicted in the four quadrants of the model. Each quadrant contains the
outcome of each role as well as the activities the HR professional is to perform.
Cell 1
The HR manager works to be a strategic partner by focusing on the alignment of HR strategies and practices with
the overall business strategy. By fulfilling this role (strategic partner) HR professionals increase the capacity of the
business to execute its strategies.
Cell 2
This role (Administrative expert) requires HR professionals to design and deliver efficient HR processes, e.g.
staffing, training, appraisal, rewarding and promotion. HR professionals must ensure that these organisational
processes are designed and delivered efficiently. This process is ongoing.
Cell 3
The third key role to be played by the HR professional (change agent) is management of transformation and
change. This entails making fundamental cultural changes within the organisation.
Cell 4
The employee-contribution role of HR professionals (Employee champion) encompasses their involvement in the
day-to-day problems, concerns, and needs of employees. For example, where intellectual capital becomes a
critical source of a company’s value, HR professionals should be active and aggressive in developing this capital.
(Grobler et.al.; 2017).
Thus, according to Grobler et.al (2017), by turning the four HRM roles into specific types of behaviour and actions,
a world-class HR organisation can be created. Being an HR professional does not mean simply moving from
operational to strategic work as the new challenges demand; it means learning to master both operational and
strategic processes and people by fulfilling multiple roles.

Video Activity 2.1:

In this conversation, Dave and the host delve into a multitude of topics, including how HR can increase its impact
to leaders, organisations, and workers. They talk about the qualities that a great chief HR officer has and even talk
a little bit about some of the criticism of Dave’s infamous HR business partner model, and how the model has
evolved over time. They focus on four phases of digital HR, efficiency, innovation, information and connection.
There is also talk about the impact that technology and the future of work is having on strategic workforce planning
and some of the surprising, and perhaps worrying, findings Dave's researchers unearthed on how companies are
using people analytics. Finally, they also talk about what Dave calls his new moon-shot, an organisational guidance
system that could herald the dawn of next generation HR and increase the business impact of the function by
several multiples.

1. True
2. False. Administrative expert
3. True
4. True
5. False. Tactical plans
Activity 2.2:
The fourth industrial revolution is the interconnection of physical systems and virtual networks, allowing the
technological and physical worlds to be combined, and it is having a major impact on the workforce. High speed
internet, cloud technology and AI are all affecting the velocity, scope and impact of change. On the demand side
this leads to new patterns of consumer behaviour. On the supply side it drives the need for innovative new ways
to meet customer needs.
Think Point 2.2:

Yes. By having such sophisticated induction and on boarding processes in place, employees can settle in much
quicker to their respected roles and working environment. This benefits both the organisation that is hiring, and the
employee that is being hired as it reduces the “lag time” that can often occur when new employees have to take a
considerable amount of time before they start actively contributing to the productivity and operations of an
organisation. It has a positive impact on talent management and can also assist an entity in reducing its labour
turnover rate.
Video Activity 2.2:

Talent Management is a set of integrated organisational Human Resource processes designed to attract, develop,
motivate, and retain productive, engaged employees. The goal of talent management is to create a high-

performance, sustainable organisation that meets its strategic and operational goals and objectives. Professional
perspectives on talent management vary dramatically.
Think Point 2.3:

A self-managed team is a group of employees that are responsible and accountable for all or most aspects of
producing a product or delivering a service. Traditional organisations assign tasks to employees depending on
their skills or the functional department (sales, finance, and production). A self-managed team carries out the
supporting tasks as well, such as planning and scheduling the technical workflow tasks, and human resource tasks
such as managing vacations and absences. Team members may take turns leading and assuming technical
responsibilities and due to the autonomy given to self-managed teams; these teams have greater ownership of the
jobs they perform.
Some benefits of self-managed teams are: team members share accountability for what they accomplish, which
can be a great motivator; individuals have greater commitment to the task because they’re directly responsible for
its results; and they take on some of a manager’s work so he can continue on other tasks. However, self-managed
teams are not without problems. Groupthink occurs more frequently with these teams and members may struggle
during the transition from supervisor-led management to self-management, possibly because of lack of
interpersonal skills or poor implementation by the company. Not surprisingly, the most effective self-managing
teams are found in companies where the corporate culture supports democratic decision making and the
employees are generally well-educated.
Virtual teams are groups of individuals working together with a common purpose but from different geographic
locations. People may be in different time zones or even different organisations. The obvious advantage of a virtual
team is the low cost, both in time and money to maintain it. Meeting in virtual time increases flexibility for the
members (no need to get dressed before the meeting!) and allows the organisation to use the talent of people from
around the globe.
The idea of virtual teams is relatively new but according to the IQVIS management consulting firm, virtual teams
have grown 80 percent in business use from 2005 to 2015. Virtual teams are possible thanks to advances in
communications and technology, such as e-mail, the World Wide Web (Internet), videoconferencing, and other
products. Working across cultures can be as challenging as working cross-functionally and working with different
cultures means working with very different leadership styles and decision-making processes.
Despite barriers, many companies have been adapting virtual teams. SAP is the world’s largest inter-enterprise
software company with more than thirty thousand employees in sixty countries. It relies on virtual teams to survive.
It has five headquarters around the globe, each one with a specific area of expertise shared via virtual meetings.
IBM and General Electric are corporations that also depend on virtual team strategies.


1. False. On boarding
2. True
3. True
4. False. Employment
5. True
Case Study 2.1:

1. Many HR professionals feel that by having an HRIS in place, organisations will be able to eradicate many of
the HR problems that previously occurred as information technology minimises the risk of human errors since
the system is programmed to gather the relevant and respective informational inputs that are required.
2. Step One: Plan and define objectives

Step Two: Involve stakeholders
Step Three: Create a project team
Step Four: Evaluate HRIS options
Step Five: Create a process map for implementation
Step Six: Execute implementation
Step Seven: Post-live training
Step Eight: Testing post- live performance
3. a) Labour Turnover
a) Employee satisfaction
b) Absenteeism rate
c) Productivity efficiency and effectiveness

Unit
3: Human Resource Strategy
and Business Strategy

3.2 Strategic Management • Provides an overview of the context of strategic

management from an HRM perspective
3.3 Strategic Human Resource Management • Describes the practice of strategic management
(SHRM)
3.4 Strategy Formulation • Explains the process of strategy formulation
3.5 Strategy Implementation • Describes how strategy implementation occurs
3.6 Strategy Evaluation and Control • Explores the evaluation of strategy and control

Cengage.

3.1 Introduction
Organisations are increasingly recognising that the human resource represents a major source of competitive
advantage. An organisation with a high-quality workforce will be in a better position to compete in terms of product
and service quality, technological innovation and market responsiveness. The competency levels of an
organisation’s human resource can be a determining factor for meeting strategic objectives. Competitive advantage
of the human resource is sustained by strategic HRM that provides the link between business strategies and
improved business performance. This is achieved when HR translates business strategy into specific business
priorities, such as changing the culture, structure or introducing self-directed teams. HR is now becoming more
accountable for adding value to the organisation’s output and requires that HR managers become strategic
partners, not just in in operationalising the strategy, but also in organisational strategy formulation (Nel and Werner,
2018).
3.2 Strategic Management

The goal of strategic management in an organisation is to deploy and allocate resources in such a way that gives
it a competitive advantage. Due to the major competitive challenges’ organisations face today, organisations are
required to take a proactive, strategic approach in the marketplace and to be maximally effective, the HRM function
must be integrally involved in the organisation’s strategic management process (Noe et.al, 2019). Strategic
management is a process, to address the competitive challenges an organisation faces and can be referred to as
managing the “pattern or plan that integrates an organisation’s major goals, policies and action sequences into a
cohesive whole” (Noe et.al, 2019).
In other words, strategic management is a process for analysing a company’s competitive situation, developing the
company’s strategic goals, and devising a plan of action and allocation of resources (human, organisational and
physical) that will increase the likelihood of achieving those goals. This is the kind of strategic approach that should
be emphasised in human resource management (Noe et.al, 2019).
3.2.1 The Strategic Management Process

According to (Noe et.al, 2019) the strategic management process has two distinct yet interdependent phases:
Strategy formulation and strategy implementation:
a) During strategy formulation, the strategic planning groups decide on a strategic direction by defining the
company’s mission and goals, its external opportunities and threats, and its internal strengths and weaknesses.
They then generate various strategic alternatives and compare those alternatives’ ability to achieve the company’s
mission and goals.
b) During strategy implementation, the organisation follows through on the chosen strategy. The basic premise
behind strategy implementation is that “an organisation has a variety of structural forms and organisational
processes to choose from when implementing a given strategy” and these choices make an economic difference.

Think Point 3.1

Suggest reasons why organisations feel that there is a need for the strategic
management process to be implemented and aligned to their business aims,
goals and objectives?

Considering recent events and consequences of Covid-19, discuss how you
would have developed and implemented an effective HR strategy for your
organisation to both cope with the execution of daily business tasks, and
adhere to government protocols and regulations?
3.3 Strategic Human Resource Management (SHRM)

Strategic HR management (SHRM) is a process or an approach that addresses the competitive challenges an
organisation faces in terms of its human resource management processes and activities (Nel and Werner, 2018).
Noe et. al (2019) defines strategic human resource management as a pattern of planned human resource
deployments and activities intended to enable an organisation to achieve its goals. Strategic HR management
entails long-term, top-level management decisions and actions regarding the entire employment relationship which
in turn are in alignment with the overall general strategic management of the organisation.
It entails synchronising and integrating the organisation’s strategic business needs and plans with all those aspects
stemming from and relating to the management of its employees. HR managers are under increasing pressure to
become strategic business partners in assisting the organisation to better respond to the challenges of downsizing,
restructuring and global competition by providing value-added contributions to the success of the business. For
example, if HR requirements are compiled for a strategy of innovation, it will be vastly different from a strategy
requiring a relocation or start-up section of the business to compete in a neighbouring country. Innovation will
require that the competition must be outsmarted beaten and improved products or services must be provided. If
South African based manufacturing organisation wants to expand into Africa (strategy of competition) then the HR
department would have to ensure that it invests time and resources in understanding the African market and
dealing with the challenges faced with international HR management (Nel and Werner, 2018).

Attracting skills creates more opportunities
Everyone knows the term ‘powerhouse’ to describe an area of productive and
prosperous economic activity.

All over the world, towns, cities, urban regions, and industrial districts play an
important role in the economic growth and prosperity of a country. Highly
populated, developed and urbanised areas draw people as they offer
opportunities; and then they become even more productive and innovative as
a result, attracting more people, capital, and activity. South Africa is finding that
it must follow this pattern of global economics if it is to succeed. In the old
economy, scarce resources went to areas where they were already scarce
(e.g. coal to power stations; doctors to rural hospitals).
In the new economy, just the opposite happens: scarce resources go to where
they are already plentiful (e.g. entrepreneurs to Johannesburg). Wealth
accumulates where knowledge workers gather. Locations best able to leverage
intangible assets will be the most successful. People with marketable skills
want decent places to live and work, and so strategic planners need to create
liveable learning communities and workplaces to attract them. Even in the
technological age, the oldest core needs of place, sense of community, identity,
history and faith association are critical factors in success. Skills shortages
occur when businesses are not able to fill positions because there are not
enough people with the required skills, or there is poor strategic planning.
Research by Du Plesis and Frederick (2012) shows that there is often a

mismatch between what employers need at the time, and what workers can
provide. Skills shortages become a factor that inhibits output. Conversely, a
well-skilled workforce can affect an employer’s bottom line through immediate
productivity gains.
Source: Adapted from Du Plessis and Frederick (2012)
QUESTION:
Analyse the specific strategy can the government in South Africa adopt to
ensure the continuous replenishment of skills in our labour force?


1. Organisations are increasingly recognising that the human resource
function represents a major source of competitive advantage?
2. The goal of operational management in an organisation is to deploy and
allocate resources in such a way that gives it a competitive advantage?
3. Strategic management is a process, to address the competitive
challenges an organisation faces and can be referred to as managing
the pattern or plan that integrates an organisation’s major goals, policies
and action sequences into a cohesive whole?
4. During strategy formulation, the organisation follows through on the
chosen strategy?
5. Strategic HR management entails long-term, top-level management
decisions and actions regarding the entire employment relationship
which in turn are in alignment with the overall general strategic
management of the organisation?
3.3.1 The Link between strategic planning and HR management

Figure (3.1) indicates how the strategy should be aligned with the HRM function and represents the vertical
alignment between organisational strategy and HRM strategy and directs the HR activities towards achieving
strategic objectives (derived from the vision).
It is the set of decisions and activities to be formulated for implementation that will ensure competitive advantage
in the future. Vision and mission are important, but not the only two factors to ensure a successful organisation.
It needs to be translated into operational plans that will guide the activities of the function, in this case HRM as
depicted in Figure (3.1).
Activity 3.1
Consider the importance of the strategic role of HR in aligning to business
strategy?
Video Activity 3.1

What is Strategic Planning, Really?
https://www.youtube.com/watch?v=-gcNK-1IaiQ
Reflect about the perspectives of strategic planning?

ORGANISATIONAL STRATEGY
Vision Mission Core values and reason for existence
HUMAN RESOURCE MANAGEMENT PRACTICES
Organisational Employee
Talent Compensation
development
Management and rewards Relations
and renewal
4Figure 3.1: Strategic Alignment (Nel and Werner, 2018).

It is critical that SHRM is aligned with the organisational strategic plan in order to improve organisational
competitiveness. Earlier views of managers to exclude employees’ input have changed over time as they realise
the importance of employee involvement and inputs in ensuring they understand the linkage between strategy and
operations (Nel and Werner, 2018). An organisation’s strategic management decision-making process usually
takes place at its top levels, with a strategic planning group consisting of the chief executive officer (CEO), the
chief financial officer (CFO), the president and various vice presidents.
Think Point 3.2

Despite the latest trends and developments in the field of Human Resource
Management, evaluate the possible reasons hindering many South African
organisations from accepting the ongoing call for the HRM function to be
holistically integrated with the strategy of an entity?
There are many establishments within our country that still do not consider
HRM as a strategic business partner and as a result, they are failing to reap
the rewards that other entities in foreign countries are currently enjoying


1. Downsizing is when a company makes changes to its financial or
operational structure, typically while under financial duress?
2. A SWOT analysis looks at an organisations strengths and weaknesses
while simultaneously assessing the market environment for any
opportunities and threats?
3. Vision and mission are important, but not the only two factors to ensure
a successful organisation?
4. COO, CEO and CFO are all examples of tactical level managers found
in an organisation?
5. Strategy is the set of decisions and activities to be formulated for
implementation that will ensure competitive advantage in the future?
Each component of the process involves people-related business issues. The HRM, function therefore needs to
be involved in each of these components Noe et. al (2019). According to Noe et. al (2019), four levels of integration
seem to exist between the HRM function and the strategic management function:
Administrative linkage:
Is the lowest level of integration where the HRM’s function focuses on day-to-day activities and engages in
administrative work unrelated to the company’s core business needs and therefore completely divorced from any
component of the strategic management process in both strategy formulation and strategy implementation. The
HRM executive has no time or opportunity to take a strategic outlook toward HRM issues. The company’s strategic
planning function exists without any input from the HRM department.
• One-way linkage:
The firm’s strategic business planning function develops the strategic plan and then informs the HRM function of
the plan. Although this one-way linkage does recognise the importance of human resources in implementing the
strategic plan, it precludes the company from considering human resource issues while formulating the strategic
plan. This level of integration often leads to strategic plans that the company cannot successfully implement
• Two-way linkage:
This integration occurs in three sequential steps First, the strategic planning team informs the HRM function of the
various strategies the company is considering. Then the HRM executives analyse the human resource implications
of the various strategies, presenting the results of this analysis to the strategic planning team.

Finally, after the strategic decision has been made, the strategic plan is passed on to the HRM executive who
develops programmes to implement it
• Integrative linkage
Is multifaceted and dynamic based on continuing rather than sequential interaction. The HRM executive is an
integral member of the senior management team. Companies with integrative linkage have their HRM functions
built right into the strategy formulation and implementation processes
Activity 3.2
Delery, J.E. and Roumpi, D., 2017. Strategic human resource management,
human capital and competitive advantage: is the field going in circles? Human
Resource Management Journal, 27(1), pp.1-21.
https://onlinelibrary.wiley.com/doi/pdf/10.1111/1748-8583.12137
By referring to the abstract of this article, identify the ways that HRM can
contribute to a firm’s sustainable advantage?
3.3.2 Advantages of an integrated approach to SHRM

The advantages of adopting an integrated approach to SHRM according to Nel and Werner (2018), include the
following:
• Improved understanding of the implications of strategic organisational planning for HR
• Proactive recruitment of the required and experienced HR
• Improved HR development activities
• Improved analysis and control of costs related to HR by providing more objective criteria for payroll,
labour market, training and other expenses
According to Nel and Werner (2018), the process of ensuring alignment between the organisation’s strategy and
HR strategy is referred to as ‘fit’ or alignment. There are two types of alignment:
• Vertical alignment – where all HR strategies, resources, and functions are in line with that of the
organisation
• Horizontal alignment – where all functions and activities within HR are aligned with each other
Therefore, it is believed that strategic management and planning should include strategic HR planning from the
outset because of the benefits it holds for an organisation.

Think Point 3.3

Considering the impact that the Covid-19 pandemic has had on trade and
industry in many developing nations like South Africa, what do you consider
to be some of the biggest challenges facing SMME’s in adopting SHRM
practices on the African continent?
3.4 Strategy Formulation

The process of formulating the HR management strategy involves deciding on an appropriate strategic direction
by defining a company’s mission and goals, its external opportunities and threats and its internal weaknesses and
strengths for the management of HR within the context of the organisation’s environment. The strategic choice
must be made preferably within the context of environmental constraints (Nel and Werner, 2018). The strategic
choice is the organisation’s strategy. It describes the ways the organisation will attempt to fulfil its mission and
achieve its long-term goals.
It is imperative that all people-related business issues be considered during strategy formulation. These issues are
identified in the HRM function. Mechanisms or structures for integrating the HRM function into strategy formulation
may help the strategic planning team make the most effective strategic choice. Once that strategic choice is
determined, HRM must take an active role in implementing it (Noe et al, 2019).
Video Activity 3.2

7 Steps to Successful Strategy and Implementation
https://www.youtube.com/watch?v=LkesApAMSQk
Provide a minimum of two reasons as to why strategies sometimes fail?
3.5 Strategy Implementation

After an organisation has chosen its strategy, it must execute that strategy. The strategy a company pursues
dictates certain HR needs. For a company to have a good strategy foundation, certain tasks must be accomplished
in pursuit of the company’s goals, individuals must possess certain skills to perform those tasks and these
individuals must be motivated to perform their skills effectively. The basic premise behind strategy implementation
is that an organisation has a variety of structural forms and organisational processes to choose from when
implementing a given strategy. Five important variables determine success in strategy implementation:
• Organisational structure
• Task design
• The selection, training and development of people
• Reward systems
• Types of information and information systems

First, for strategy to be successfully implemented, the tasks must be designed and grouped into jobs in a way that
is efficient and effective. Second, the HRM function must ensure that the organisation is staffed with people who
have the necessary knowledge, skill and ability to perform their part in implementing the strategy. This goal is
achieved primarily through recruitment, selection, and placement, training, development and career management.
The HRM function must develop performance management and reward systems that lead employees to work for
and support the strategic plan. Therefore, the HRM function becomes one of:
• Ensuring that the company has the proper number of employees with the levels and types of skills
required by the strategic plan
• Developing “control” systems that ensure that those employees are acting in ways that promote the
achievement of the goals specified in the strategic plan
This is what has been referred to as the “vertical alignment” of HR with strategy. This means that HR practices and
processes are aimed at addressing the strategic needs of the business. It is through administering HRM practices
such as job analysis/design, recruitment, selection systems, training and development programmes, performance
management systems, reward systems and labour relations programmes that the HRM function can implement
strategy (Noe et al, 2019).
Case Study 3.1

Excerpt from
https://www.poppulo.com/blog/hr-strategy-examples-what-makes-a-
successful-hr-strategy/
Across the many ‘Best Places to Work’ lists (like Glassdoor for example) many
of the usual suspect’s reign supreme – such as Google and LinkedIn. These
organisations boast HR strategies that are recognised internationally as being
innovative. And while many of the stalwarts on these lists are high tech firms,
it’s heartening to see organisations that have been around for decades making
waves in the HR sector.
Organisations like Nissan, which has developed a HR concept it calls ‘kaizen’.

Kaizen empowers the Nissan workforce to continually improve the way a job
is done. This is coupled with an emphasis on providing managers with the
autonomy to recruit and build their own teams. Alliance Boots (parent company
of the Boots chain) also shines for its promotion of community outreach
programs for employees.

In fact, Alliance Boots was the first organisation of its kind that offered formal
accreditation to employees for their work in the community. Another interesting
example is BT, a juggernaut of a telecoms company, which even during the
economic crash continued to retain, train and redeploy its existing staff. Its
focus on its employees has earned it a reputation for loyalty that is matched by
its employees. Mayo Clinic, which consistently features on Forbes 100 Best
Companies to Work For, has worked to create a dynamic team. This is
supported by strong management, consistent internal communications and
ongoing training and development.
Research and consider what makes HR strategies successful?
3.6 Strategy Evaluation and Control

An effective and successful organisation will constantly monitor the effectiveness of both the strategy and the
implementation processes. The monitoring makes it possible for the company to identify problem areas and either
revise existing structures and strategies or devise new ones. In this process emergent strategies appear and the
critical nature of HRM in securing a competitive advantage is recognised (Nel and Werner, 2018).

1. The process of ensuring alignment between the organisation’s strategy
and HR strategy is referred to as ‘fit’ or alignment?
2. Vertical alignment is where all functions and activities within HR are
aligned with each other?
3. The process of formulating the HR management strategy involves
deciding on an appropriate strategic direction by defining a company’s
mission and goals, its external opportunities and threats and its internal
weaknesses and strengths for the management of HR within the context
of the organisation’s environment?
4. Performance management is inclusive of task design, reward systems,
the selection, training and development of people, the types of
information and information systems?
5. An effective and successful organisation will constantly monitor the
effectiveness of both the strategy and the implementation processes?

3.7 Summary
Thus, in strategic HRM, the HRM function is involved in both strategy formulation and strategy implementation.
The HRM executive gives strategic planner’s information about the company’s human resource capabilities and
these capabilities are usually a direct function of the HRM practices. This information about human resource
capabilities helps top managers choose the best strategy because they can consider how well each strategic
alternative would be implemented. Once the strategic choice has been determined, the role of HRM changes to
the development and alignment of HRM practices that will give the company employees having the necessary
skills to implement the strategy. In addition, HRM practices must be designed to elicit actions from employees in
the company (Noe et al, 2019).
Revision Questions
1. Discuss the steps to align business and HR strategy
2. Evaluate the advantages of SHRM?
3. Evaluate the link between strategic planning and HR management?

Think Point 3.1:

Organisations are increasingly recognising that the human resource represents a major source of competitive
advantage. An organisation with a high-quality workforce will be in a better position to compete in terms of product
and service quality, technological innovation and market responsiveness. The competency levels of an
organisation’s human resource can be a determining factor for meeting strategic objectives. Competitive advantage
of the human resource is sustained by strategic HRM that provides the link between business strategies and
improved business performance. This is achieved when HR translates business strategy into specific business
priorities, such as changing the culture, structure or introducing self-directed teams. HR is now becoming more
accountable for adding value to the organisation’s output and requires that HR managers become strategic
partners, not just in in operationalising the strategy, but also in organisational strategy formulation (Nel and Werner,
2018).
The goal of strategic management in an organisation is to deploy and allocate resources in such a way that gives
it a competitive advantage. Due to the major competitive challenges’ organisations face today, organisations are
required to take a proactive, strategic approach in the marketplace and to be maximally effective, the HRM function
must be integrally involved in the organisation’s strategic management process (Noe et.al, 2019). Strategic
management is a process, to address the competitive challenges an organisation faces and can be referred to as
managing the “pattern or plan that integrates an organisation’s major goals, policies and action sequences into a
cohesive whole” (Noe et.al, 2019).
In other words, strategic management is a process for analysing a company’s competitive situation, developing the
company’s strategic goals, and devising a plan of action and allocation of resources (human, organisational and
physical) that will increase the likelihood of achieving those goals. This is the kind of strategic approach that should
be emphasised in human resource management (Noe et.al, 2019).

Please refer to the link below for an example of a Covid-19 HR strategy from Deloitte:
https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/human-capital/deloitte-uk-workforce-strategies-
for-post-covid-recovery-workbook.pdf

The South African government can choose to aggressively implement a strategy of skills development to
ensure that skills continue to be replenished within our labour force. There are already good mechanisms in
place such as The Skills Development Act 97 of 1998 and The Skills Development Levies 9 of 1999 which

aims to foster greater levels of funding and investment in our country with regards to skills development. By
minimising and eliminating on corruption within our state entities, funds can be used to fulfil their purpose. This
will go a long way to ensure the continuous replenishment of skills in our labour force.

1. True
2. False: Strategic management
3. True
4. False. Strategy implementation
5. True
Activity 3.1:
A good business strategy is informed by people factors. This is driving demand for greater evaluation and reporting
of human capital data. Most organisations today recognise that people are fundamental to sustainable value
creation, which is why 'human capital' is often referred to as a business’ 'most important asset'. Individuals’
knowledge, skills and abilities are assets which the organisation should invest in and use to create sustainable
value for the organisation and its various stakeholders.
The intangible value of an organisation relating to the people it employs is gaining recognition among accountants
and investors, and its implications for long-term sustained performance is now generally accepted. So, it’s too
simplistic to suggest that strategic human resource management stems from the organisation’s business strategy.
The two must inform one another. The way in which people are managed, motivated and deployed, and the
availability of skills and knowledge, should all shape the business strategy.
It's now increasingly common to find business strategies that are inextricably linked with, and incorporated into,
strategic HRM, defining the management of all resources within the organisation. Individual HR strategies may,
however, be shaped by the business strategy. So, if the business strategy is about improving customer service,
this may translate into discrete HR strategies involving the use of training plans or performance improvement plans.
One important area of people strategy is workforce planning.
This helps organisations meet their future skills needs and support their long-term business goals. There's recently
been renewed interest in this issue, largely driven by the realisation that in a fast-changing economy some degree
of planning is vital to ensure the organisation is developing enough capacity to adapt to new trends and take
advantage of emerging opportunities. Workforce planning involves putting business strategy into action. It must
therefore be an iterative process - feeding information upwards on the capability and capacity of the workforce to
deliver - and acting on forecast need for skills and capabilities to take the organisation forward.

Video Activity 3.1:

The strategic planning process results in a strategic plan, a document that articulates both the decisions made
about the organisation's goals and the ways in which the organisation will achieve those goals. The strategic
plan is intended to guide the organisation's leaders in their decision-making moving forward.
Think Point 3.2:

Within the private and public sectors in South Africa, there seems to almost be a reluctance to accept the ongoing
call for the HRM function to be holistically integrated with the strategy of an entity. This can be down to many
reasons such as:
• Authoritarian rule
• Fear of relinquishing power
• Role of HR is not considered important
• Fear of uncovering unfair HRM practices
• Metathesiophobia (fear of change)
• Inertia

1. False. Restructuring
2. True
3. True
4. False. Strategic level managers
5. True
Activity 3.2:
HRM practices can contribute to a firm's sustainable competitive advantage not only by enhancing employees'
ability, and offering motivation and opportunities, but also by shaping supply-side and demand-side mobility
constraints.
Think Point 3.3:

• Top management do not perceive a need for the relationship
• HR practitioners are perceived as “personnel experts” not “experts in business”
• HR information is sometime incompatible with other information used in the strategy formation
• Conflicts may exist between short-term and long-term HR needs
• Lack of financial resources
• Lack of human capital and developmental capabilities

Video Activity 3.2:

• Often organisations do not understand how to properly formulate a strategy or
• They fail to execute strategy effectively
Case Study 3.1:

The key to a successful HR strategy is to identify what unifies and motivates employees and to develop a strategic
plan around that understanding. Think about conducting a regular survey where you ask what motivates employees
and ask them to rank a series of options in order of importance to them.

1. True
2. False: Horizontal alignment
3. True
4. False. Organisational structure
5. True

Unit
4: Talent Planning And Workforce
Planning

4.2 Overview of Workforce Planning • Provides an overview of workforce planning
4.3 Talent Planning • Describes the process of talent planning
4.4 Workforce Planning Focus Areas • Explains the workforce planning focus areas
4.5 Strategic Human Resource Planning • Describes strategic human resource planning
(SHRP)
4.6 Steps in the SHRP Process • Examines the various steps in the SHRP process

Management in South Africa. Seventh Edition. United Kingdom: Cengage.
• Dessler, G. (2023). Human Resource Management. Seventeenth Edition.
United States of America: Pearson.

4.1 Introduction
Human resource managers are at the forefront of the worldwide war for competitive advantage. Organisations need
to find the best set of workers for meeting their strategic objectives, attract those workers to their companies, and
then get them to stay long enough to obtain some return on their investment. Organisations must strive to make
sure that the decisions they make with respect to who gets accepted or rejected for jobs promote the best interests
of the company and are fair to all parties involved. Despite the expected severe increase in population, employers
are seeking talent in the workforce (Nel and Werner, 2018).
Think Point 4.1

Critically evaluate the ways that organisations and HR managers in South
Africa are coping with the additional burden and pressure now placed on
them because of Covid-19 with regards to executing tasks and
responsibilities like that of talent and workforce planning?
4.2 Overview of Workforce Planning

Workforce planning (HR planning) is an integrated and holistic resourcing planning process that ensures that the
right people are in the right roles to meet the current organisational profit plan (Nel and Werner, 2018). Wärnich
et.al (2018), define HR planning as “the process of anticipating and providing for the movement of people into,
within and out of the organisation.”
Within the next decade organisations can expect to experience the following:
• An ageing workforce which will create an increasing need for talented employees with the skills and
competencies needed
• A more diverse workforce
• Increased competition for highly skilled employees
• Technology playing an ever-increasing role in improving efficiency and productivity
The attainment of HR is fast becoming a vital ingredient in strategic organisational success. It is imperative that
companies develop processes, policies, procedures, and strategies to compete aggressively.
Think Point 4.2

Outline three examples of the basic people management practices that HR
should be concerned about?
We often talk about it, but do HR practitioners clearly understand what the
term means?


1. HR planning is “the process of anticipating and providing for the
movement of people into, within and out of the organisation”?
2. A more diverse workforce is more likely to be an occurrence in a country
like India rather than South Africa?
3. The economic system of capitalism in South Africa results in there being
an increase in competition for highly skilled employees?
4. It is imperative that companies develop processes, policies, procedures,
and strategies to compete aggressively?
5. Effectiveness signifies a peak level of performance that uses the least
amount of inputs to achieve the highest amount of outputs whilst
minimising the waste of resources?

“With the availability of valuable and essential business tools such as the
internet, email, social and e-media, the risk of losing talented employees has
suddenly become real. Organisations cannot lock up employees’ ideas or their
intellectual capital, but they can take steps to protect and retain them.”
As an HR manager, evaluate the means you would make use of to retain

your employees.
Case Study 4.1

Read the case below and answer the question that follows:
Workforce Planning in the Age of COVID
https://www.shrm.org/hr-today/news/hr-
magazine/winter2020/pages/workforce-planning-in-the-age-of-covid.aspx
Workforce Planning in the Age of COVID
Companies need a strategic plan to ensure that they get the right people in
the right jobs.
By Tam Harbert December 1, 2020
When COVID-19 hit, the staff at Henry Ford Health System in Detroit was nearly
overwhelmed by patients. Suddenly, the organisation needed more workers,
especially ICU nurses and environmental services staff responsible for infection

control. The health system, which comprises six hospitals and employs 33,000
people, quickly built a new program for cross-training called Ready Talent. The
hospitals used it to train other staff to be “runners” for ICU nurses so that these
highly specialised employees could devote 100 percent of their time to critical,
lifesaving work, says Sarah Sheffer, director of strategic workforce planning.
The organisation is now improving the program. In the current pilot, it’s training
employees in three discipline including environmental services, food service
and transport so they can be easily shifted to wherever the greatest needs are.
The program is good for both the organisation and the employees. First, it
improves the hospitals’ ability to fill staffing shortages in a crisis, since
employees from food service could move to environmental services, for
example. Second, “it offers an opportunity for team members to have different
career growth paths,” Sheffer says. “They aren’t held to just advancing in one
department.”
The events of the past year have prompted many organisations to take a closer
look at midterm and long-term workforce planning strategies. In traditional
workforce planning, a company analyses its workforce and determines how to
prepare for future staffing needs. It conducts a systematic assessment of
workforce content and composition issues, including projected candidate
availability, then determines what actions to take, such as hiring more software
programmers or preparing for a wave of retirements. The goal is to ensure that
the organisation will have the right people with the right skills in the right jobs to
accomplish its goals and objectives in the years to come .In many companies,
however, workforce planning has been little more than a headcount exercise,
says Todd Brodie, SHRM-SCP, a management consultant at CAID Associates
in Orlando, Fla. What’s needed, he says, is a strategic plan that aligns with the
business’s overall goals, whether they involve increased profits or better
performance.
Brodie estimates that only 40 percent to 50 percent of employers have an

effective, strategic workforce plan—that is, one that takes care of employees,
increases their engagement, and builds skills and capabilities for workers and
the organisation. The pandemic has created “a massive opportunity to make
changes,” says Al Adamsen, founder and CEO of People Analytics & Future of

Work, a San Francisco-based events planner and global network advocating

the ethical use of people data. Many companies, for example, have formed
crisis management teams with representatives from HR, information
technology, operations and legal. Adamsen argues that such strategic teams
should have been there all along, and he hopes companies make them
permanent.
Several trends that impact the workforce, including digitisation and automation,
remote work, and demand for independent contractors, have emerged as a
result of the pandemic, according to Bryan Hancock, a partner at McKinsey &
Co. and global leader of its talent management practice. “We’ve had five years
of change in five months,” Hancock says. This has caused companies to step
back and re-examine their workforce planning processes. A May survey of
executives by McKinsey found that 33 percent planned to spend more on
workforce planning over the next year, ranking it a higher priority than recruiting,
learning and development, and engagement. Experts say companies are:
• Forming more-varied, short-term scenarios as part of their long-term
planning and revisiting those plans more often
• Improving their ability to easily and quickly retrain, cross-train and
redeploy staff
• Reimagining how they recruit, retain and redeploy employees in a
world where more people work remotely, and the use of independent
contractors is growing
• Emphasising benefits to protect the emotional, mental and physical
health of their employees
Change of Plans
The most substantial development in workforce planning is reiterative planning
in shorter time frames, experts say. Brian Kropp, group vice president of
Gartner’s HR practice, says consultants at the firm used to tell clients to follow
the advice of hockey legend Wayne Gretzky: “Skate to where the puck is going,
not to where it’s been.” In business, the quote has often been used to illustrate
the need for innovation. But now, since no one can predict where the puck will
be, they tell their clients to “skate with the puck.” “You have to make more
incremental adjustments to how the world is moving, rather than try to predict
where the world’s going to be,” Kropp explains.

He recommends adjusting plans every three months while maintaining a broad,

long-term vision of three to five years. Skills requirements, for example, are now
changing at a faster rate than ever, so Kropp says the key is to hire for broad
skill sets and then train narrowly as needs develop. It’s probably safe to
assume that a company will need people with data analytics and software
programming skills in the next five years, for example.
But while it may need Python programmers today, no one knows what new
programming language will be hot in a few years, Kropp says. So, a good
strategy for employers is to hire people with excellent programming skills and a
willingness to continue learning, then make sure the organisation has effective
training structures in place. During the onset of the pandemic, employees at
Henry Ford Health System were cross trained to help ease the burden on
nurses and other key staff.
Know Your People

Like Henry Ford Health System, many organisations realise that they need to
be able to retrain and redeploy their employees faster and more efficiently. In
some cases, that means collecting and analysing additional and better data on
employee skills and experience to more easily identify the best internal
candidates for open positions. Adobe is one company working on that. It
effectively redeployed staff during the pandemic based mostly on managers’
personal knowledge of employees and their skills, says Michelle Deneau, head
of employee insights and technology at the San Jose, Calif.-based company,
which has 22,000 employees.
“Leaders of business units know their talent well, so those relationships were
tremendously helpful,” Deneau explains. However, “Adobe’s been so high-
growth for so long that the idea of needing to redeploy talent was a bit new for
us,” she says. “In the future, we want to improve our central repository of skills
data.” Ashley Inman, SHRM-SCP, HR manager at Spire Consulting Group
LLC, a construction engineering consulting company in Austin, Texas, says
knowing “which staff are cross-trainable and might be rotated around to many
different kinds of projects or roles” makes an organisation more resilient.

Not only can a company identify and better utilise the talent it has, but it doesn’t
have to spend the time and money to recruit and hire new talent, says Inman,
a member of the Society for Human Resource Management’s Special Expertise
Panel on Talent Acquisition.
Recruitment and Retention

The experience of having to close the office and send employees home to work
because of the pandemic also promises to have lasting ramifications for
workforce planning. Gartner surveys found that almost half (48 percent) of
employees will likely continue working remotely either part time or full time even
after the pandemic passes, compared with 30 percent who worked from home
before the public health crisis hit. That not only saves employers money, it also
opens a huge labour pool for many jobs because hiring will no longer be
geographically limited. Before, companies conducted what Kropp describes as
cost arbitrage based on location. Assuming equal access to equal talent,
companies would attempt to hire in the lowest-cost geography near a physical
workplace. Now they can hire from anywhere. “That’s good news for
employers,” Kropp says.
“The bad news is that all of your competitors for talent now have the ability to
hire your employees and let them work remotely.” He adds that remote
employees often have fewer emotional and personal connections to their
employer, which may make it harder to retain them. Henry Ford’s Sheffer is
starting to think about this, particularly because telemedicine is one of the
trends that got a huge boost from the pandemic. She recognises the
opportunities for hiring, as well as the dangers of more talent raiding, but notes
that factors in the health care industry, such as state licensing and regional
credential requirements, complicate matters.
Nevertheless, “it will be very interesting to see how telemedicine evolves over
the next year or two,” Sheffer says. There’s also an opportunity for HR to fine-
tune remote work by providing more training and support. Before the pandemic,
remote work typically was an exception, with little help to ensure that people
could work from home effectively. “Just think what [organisations] could do if it
was part of the strategy to align people, including those working remotely, to
ensure the organisation was successful,” CAID Associates’ Brodie says.

Experts are issuing words of caution as employers revamp their workforce

planning strategies as a result of the coronavirus pandemic. Among the
warnings:
Don’t assume that everything will eventually go back to
normal. “Organisations really need to be stepping back from the idea that they
can go back to the way they worked before,” says Brian Kropp, group vice
president and chief of research of Gartner’s HR practice. “That's never going to
happen.”
Don’t sell off too much office real estate. Some organisations are assuming
that, because remote work will continue, they can sell their office space.
Instead, Kropp advises, think about the purpose of your real estate—whether
it’s to build culture, create collaboration zones or something else—and then
base your decision on the answer.
Don’t focus on all talent equally. McKinsey & Co. research indicates that
there are usually 25 to 50 roles in an organisation that create a disproportionate
amount of value. Given how quickly things have changed, it’s possible that there
has been a shift in how your organisation creates value and what those key
roles are, says Bryan Hancock, global leader of the firm’s talent management
practice. He recommends identifying those roles and their requirements, and
then making sure you have the right talent in the right roles.
Don’t view a job, or a job candidate, too narrowly. The ability to retrain and
redeploy talent is becoming critical. HR professionals and companies would do
well to think in terms of general skills and competencies rather than specific job
requirements, says Ashley Inman, SHRM-SCP, HR manager at Spire
Consulting Group LLC. Hiring in

With the use of contingent and temporary workers expected to continue to grow,
companies could also better incorporate these individuals into their strategic
workforce plan. Henry Ford had an in-house staffing office for each hospital that
arranged contingent workers as needed for their respective institutions. That
evolved during the pandemic into a system wide flexible staffing command
centre, a central talent bank that placed temporary staff across all Henry Ford
locations. This change created efficiencies that benefited the hospitals as well
as the workers. It placed contingent workers at a hospital near them, for
example, rather than at one across town.
The staffing command centre provided temporary assignments to furloughed

staff and, through partnerships with other medical institutions in the area, such
as the Cleveland Clinic, offered exhausted nurses temporary replacements so
they could have a break. Deneau says Adobe has started looking at contingent
workers more holistically. Before, it viewed contractors separately from regular
full-time employees, with separate budgets, for example. Contingent workers
might be hired on a short-term basis to do the job of someone on leave. Now,
the company is trying to better integrate these workers, Deneau says. “We want
to level up and look at our total workforce—from spend to headcount to type of
work—to think across the organisation about how to bring different types of
resources together most effectively for the business.”
Focus on People
The pandemic brought home the importance of respecting employees as
human beings. Many companies have redoubled benefits to care for their
people in the long term. Historically, corporate leaders have spent a lot of time
talking about what skills and capabilities they need from employees for the
organisation to be successful. “But COVID revealed that perhaps we should pay
more attention to what needs employees have that we could potentially meet,”
Kropp says. Meeting those needs could become the next big competitive
differentiator to attract top talent, he adds. This focus has elevated the influence
of HR in many organisations. “This is one of the few times in the 20-plus years
I’ve been in HR that everyone is turning to HR and asking, ‘What should we be
doing?’ ”

Says Mark Berry, vice president of HR at Indiana Packers Corp., a meat

supplier headquartered in Delphi, Ind., with 3,100 employees. “Overall, HR has
become a more important strategic player in the company.”
Source: Harbert, T. 2020. Workforce Planning in the Age of Covid-19.

[Online]. Available: https://www.shrm.org/hr-today/news/hr-
magazine/winter2020/pages/workforce-planning-in-the-age-of-covid.aspx
[08 July 2021]
Question:
Elaborate on the methods that can be adopted to plan effectively for a post
covid-19 environment?
Figure 4.1 shows that there is a clear link between HR strategies and organisational strategies. This integrative
model presented below shows the flow of activities in executing workforce planning effectively by means of
integrating recruitment of labour with the objectives of the organisation (Nel and Werner, 2018).
5Figure 4.1: Strategic HR Planning and Organisational Strategies

4.3 Talent Planning

Talent management planning is about attracting more of the right people. It allows employers to understand the
career aspirations of the people they might need to hire. The following according to (Nel and Werner, 2018) are
important considerations in Talent Planning:
4.3.1 Talent Inventory

The term talent, according to Nel and Werner (2018), refers to the attraction and selection of high potential
employees. Talent management refers to the strategic management of the flow of talent through the organisation;
tracking the skills and abilities of your current employees can focus recruiting efforts.
Skills inventories provide an account of the abilities, skills, training and experience of current employees and can
help identify skills gaps. These inventories can help guide hiring decisions that will ensure employers have the
necessary employees to meet the current and future needs of the organisation.
Activity 4.1
Read the following blog post:
Talent Planning in 2020: 4 Best Practices
https://toggl.com/blog/talent-planning
Discuss which of the four best practices do you feel is the most suitable
practice for modern day organisations to adopt?
4.3.2 Succession Planning

Succession planning refers to the identification and development of potential successors for key positions in an
organisation, through a systematic evaluation process and training. Creating and maintaining skills inventories
allows employers to develop succession plans based on current employee skills sets. It also allows them to identify
key employees for future openings critical to the company’s leadership and business success. A skills inventory
facilitates better HR practices and helps align HR with the strategic needs of the business.
Video Activity 4.1

Watch the video below on the Succession Planning Process
https://www.youtube.com/watch?v=PmVh5jkolf4
Describe the basis of succession planning and identify the five steps that can
be used to implement succession planning?


Read the following article:
Workforce Planning is Essential to High-Performing Organisations
https://www.shrm.org/resourcesandtools/hr-topics/technology/pages/louch-
workforce-planning.aspx
Briefly discuss the common reasons that make workforce planning programs
so difficult to launch within HR
Video Activity 4.2

Watch the video below on Workforce Planning explained
https://www.youtube.com/watch?v=kjbmQ_CysnY
Outline the four C’s of workforce planning as per this video clip?
4.4 Workforce Planning Focus Areas

4.4.1 The talent demand and supply forecast
Talent forecasting is a process for predicting changes in the demand for and the supply of talent.
Forecasts are broken down into:
• Estimated increases or decreases in company growth, output and revenue
• Estimated changes in talent needs that result from organisational growth Projections
of future vacancies (Nel and Werner, 2018)
4.4.2 Talent Projection and action plans

It is important to plot a time series analysis projection using past information about the number of people employed
by the organisation over time on a graph, so that HR trends and requirements can be forecast into the future. This
technique is known as the trend projection.
Talent action plans outline which specific actions all managers must take in terms of talent management. These
plans aim to attract, retain, redeploy and develop the talent a company needs in order to meet the forecasted
quantity and quality of employees. (Nel and Werner, 2018).
4.4.3 The Integration Plan

For a company to meet its forecasted staffing needs, action plans must be fully implemented. They must be
integrated into every aspect of workforce management, including communication and the identification of potential
supporters and resisters (Nel and Werner, 2018).


1. Talent management refers to the strategic management of the flow of
talent through the organisation by tracking the skills and abilities of
current employees?
2. Succession planning can provide an account of the abilities, skills,
training and experience of current employees and can help identify
skills gaps?
3. Talent management planning is about attracting more of the right
people and it allows employers to understand the career aspirations of
the people they might need to hire?
4. A talent inventory refers to the identification and development of
potential successors for key positions in an organisation, through a
systematic evaluation process and training?
5. Talent forecasting is a process for predicting changes in the demand
for and the supply of talent?
4.5 Strategic Human Resource Planning (SHRP)

The link between HR planning and strategic organisational planning is vital if HR programmes and systems are to
be attuned to the changing needs of the company under new competitive conditions known as ‘strategic change’.
Linking HR Planning with the company planning process will facilitate the organisation’s ability to successfully
pursue a given number of strategic objectives and initiatives and as a result create a competitive advantage. When
strategic and HR planning are fully integrated, personnel to be retrenched or operations that may be discontinued
can be phased out gradually. SHRP can also assist with the selection of strategic alternatives, rather than dealing
with them only after the alternatives have been accepted (Wärnich et.al 2018).
Think Point 4.3

Consider the organisation at which you are/were employed or an organisation
that you are familiar with.
Discuss whether or not the SHRP is a separate process or is it connected to
the strategic plan of an entity?
4.6 Steps in the SHRP Process

According to Wärnich et.al (2018) the SHRP may be split into the following phases:
4.6.1 Establish the mission, vision and values for the organisation

This involves the establishment of the purpose of the organisation and why the organisation exists (the mission)
and identifies where the organisation is headed (vision) and the main principles and belief system (values).
Organisations must analyse the situation by monitoring and assessing the company mission and core business,
its strategic plans and parameters, its concepts, structure and culture and HR-related challenges.
4.6.2 Conduct an environment analysis

Environmental scanning is conducted to gather information about trends and anticipated developments in the
external and internal environment and their relevance for HR strategy. The following are considered; economic
factors, legislative matters, changes in technology and trends in the market and labour market.
4.6.3 Internal analysis

Organisations need to look at the capabilities of the employees, the composition of their workforce and the
corporate culture which will provide information on the current situation allowing organisations to determine what
they need to change and improve, and what they are doing well to continue doing well.
4.6.4 Forecasting demand

This analysis entails the determination of the total manpower requirements of the company. In other words,
according to Nel and Werner (2018), forecasting labour demand means estimating the number of workers the
organisation will need in the future. Typically, demand forecasts are developed around specific job categories or
skill areas relevant to the organisations current and future state. Once job categories or skills are identified, the
planner needs to seek information that will help predict whether the need for people with those skills or in that job
category will increase or decrease in the future (Noe et al, 2019).
It is important to recognise that forecasting involves approximations, not absolutes or certainties. At the most
sophisticated level an organisation might have statistical models that predict labour demand for the next year given
relatively objective statistics on leading indicators from the previous year (Noe et al, 2019). Demand forecast
frequently involve analysing past trends, productivity levels and managerial estimates and linking company plans
to productivity levels and projecting future needs Wärnich et.al, 2018).
4.6.5 Forecasting Supply

Once a company has projected labour demand, it needs to get an indicator of the company’s labour supply. This
calls for a detailed analysis of how many people are currently in various job categories within the company (Noe
et al, 2019). The supply component consists of two parts: internal and external supply.
• Internal supply forecasts require that the company has maintained a history of employee characteristics
such as job classifications, retirements, promotions, attritions and age profiles. The database must
contain skills inventory information and information about employees’ educational background and
qualifications

• The external supply side will be derived from an assessment of demographics, government policies,
unemployment rates and labour mobility (Wärnich et.al, 2019)
The aim is to balance the supply and demand to ensure that the organisation’s goals are reached as a result of
HR plans that are aligned to these goals. Therefore, once forecasts for labour demand and supply are known, the
planner can compare the figures to ascertain whether there will be a labour shortage or labour surplus for the
respective job categories.
4.6.6 Developing, formulating and implementing the workforce strategy

The results of the labour demand forecast, and labour supply estimation determine the actions that must be
planned. Three scenarios and the responses organisations can make to implement the plans are presented:
2Table 4.1: Developing, formulating and implementing the workforce strategy
Labour demand exceeds labour supply
Response:
• Training or retraining
• Succession planning
• Promotion from within
• Recruitment from outside
• Subcontracting
• Use of part-timers or temporary workers
• Use of overtime
Labour supply exceeds labour demand
Response:
• Pay cuts
• Reduced hours
• Work sharing
• Voluntary early retirements
• Inducements to quit
• Layoffs
Labour demand equals labour supply
Response:
• Replacement of quits from inside or outside
• Internal transfers and redeployment

Source: (Nel and Werner, 2018).
The programmes developed in the strategic-choice stage of the process are put into practice in the programme
implementation stage. A critical aspect of programme implementation is to make sure that some individual is held
accountable for achieving the stated goals and has the necessary authority and resources to accomplish this goal.
It is also important to have regular progress reports on the implementation to be sure that all programmes are in
place be specified times and that the early returns from these programmes are in line with projections. The final
step in the planning process is to evaluate the results (Noe et al, 2019).
Activity 4.2
Read the excerpt below
Source: Rohou, O. 2020. Mastering Strategic Workforce Planning. [Online].
Available: https://e3zine.com/mastering-strategic-workforce-planning/
[10 July 2021]
Knowing your resources in the present (and past) situation
Precise knowledge of a company’s resources is one of the most important
issues to resolve: HR managers often complain that they find out more about
their staff on LinkedIn than on their internal HRIS, so they must reappropriate
the data. Whatever the upstream solutions are, it is essential to plan for the
aggregation of all possible sources of existing and future data on employees in
order to better objectify their skills. At the heart of objectification lies the need
to have the most reliable, up-to-date information.
Cross-referencing all information sources at a central point facilitates the

objectification of information. Another challenge emerges from the need to
aggregate data: making the gathered information, often stored in different
formats and with a taxonomy specific to a process or a part of the organisation,
consistent. In order to extract the maximum amount of information on a single
skill from these sources, it is important to link them together using a common
language. The first task is therefore to identify all the sources of information on
employees or their skills and to aggregate them into a single skills map on
which employees, training, etc. can then be positioned.
Calculating the gap between present and future situations

Before calculating the gap between what a company wants or needs and where
it is right now, it is necessary to be able to interpret the company’s strategy

regarding skills and, more generally, its impact on human resources. However,
this simulation is complex: How can we predict what skills might be needed
tomorrow based on our strategic visions today? The projection must descend
to the skill mesh.
Once this has been done, the calculation of this gap takes place on several
different levels, for example on the company level (to identify the major
personnel movements that will come to pass) or on the individual level (to
personalise the support of each employee in this strategic transformation).
All these calculations must be carried out at the skill level in order to get rid of
the current definition of trades, which will become obsolete at T+X. Companies
will therefore be able to support the development of each individual: training,
internal mobility, career paths, etc. and decide, on a macroscopic scale, on the
priority axes for training plans, personnel changes, and future recruitment.
Using HR processes to close the gap

Once the gap has been calculated, you must be able to transmit the reading
grid to be followed to each of the company’s HR and business processes in
order to be able to execute it properly. This gap must therefore be transmitted
in a common communication language that all processes, ranging from training
to internal mobility to recruitment, can understand. To conclude, if we want to
be able to calculate the impact of a strategy on our skills resources, we need
to be able to create a common communication language that will enable us to
identify the skills resources at T0, simulate the objective at T+X, calculate the
gap and then transmit this gap to the processes. Without this common
language at competence level, the strategy cannot be executed properly.
HR departments, which, for a long time, have been cost centres, will have to
transform into profit centres by enhancing all the employee data to simulate
and support corporate strategies.
Question: Explain how HR departments can master strategic workforce

planning?


1. Linking HR Planning with the company planning process will facilitate the
organisation to successfully pursue several strategic objectives and a
competitive advantage?
2. The second step in the SHRP process is internal analysis?
3. Typically, demand forecasts are developed around specific job
categories or skill areas relevant to the organisations current and future
state?
4. When labour demand equals labour supply, the responses can be to
either replace those that have quit from inside or outside the
organisation or internal transfers and redeployment?
5. Internal supply forecasts are derived from an assessment of
demographics, government policies and unemployment rates?
4.6.7 Programme Evaluation and Control of the workforce planning system

Exercising control and carrying out evaluation of workforce planning systems guide HR activities by identifying
deviations from the plan and their causes. Quantitative measures are used more frequently in established planning
systems, where key comparisons might include the following:
• Actual staffing levels against forecast staffing requirements
• Actual levels of labour productivity against anticipated levels of productivity
• Actual personnel floe rates against desired rates
• Action programmes implemented against action programmes planned
• Actual results of action programmes implemented against expected results
• Labour and action programme costs against budgets
• Ratios of action programme benefits to action programme costs
In newly instituted planning systems, evaluation is more likely to be qualitative, because supply-and-demand
forecasts are more often based on ‘hunches’ and subjective opinions (Nel and Werner, 2018).
4.7 Summary
If done well, workforce planning will increase productivity, reduce labour costs, and dramatically cut production
time as organisations will have the right number of people, with the right skills, in the right places, at the right time.
Workforce planning works because it forces everyone to begin looking towards the future to minimise sudden
change. It requires managers to plan and to consider all possibilities and eventualities.

Revision Questions
Consider the organisation that you are employed at or an organisation that
you are familiar with and conduct the following exercise ensuring proper
strategic HR planning in that organisation:
1. Identify the company’s mission, goals and objectives?

2. Link the HR planning process to the mission, goals and objectives?
3. Assess the present status of HR within the company by analysing the
work being performed and the workforce doing the work now (internal
assessment)?
4. Scan the environment to assess how the work will probably change
over time and how the workforce will also change (external
assessment)?
5. Compare the present work being done to the expected future work
required as well as the present workforce to the desired workforce in the
future?
6. Identify gaps/surpluses (i.e. compare internal supply/external supply to
future demand)?
7. Consider long-term HR strategies to address the gaps and surpluses?
8. Implement the HR strategies that are in line with the organisational
strategies?
9. Evaluate the process regularly and implement changes where needed?

Think Point 4.1:
Organisations and HR practitioners will be finding it extremely challenging in the current climate to go about
executing routine HR tasks and activities due to the lockdown restrictions that have been implemented globally.
Some HR tasks require the ability to observe physically and monitor the performance of employees which has
diminished as a result of remote working. Also, many have had to implement retrenchment practices and
downsizing which ultimately impacts on the ability to conduct talent management and workforce planning optimally.
Think Point 4.2:

People management is defined as a set of practices that encompass the end-to-end processes of talent acquisition,
talent optimisation, and talent retention while providing continued support for the business and guidance for the
employees of an organisation.
1. True
2. False: South Africa
3. True
4. True
5. False: Efficiency

• Genuinely promote work-life balance
• Provide competitive salary and benefits
• Adopt social recognition systems to recognise performing employees
• Always be transparent
• Create a favourable organisational climate and environment
Case Study 4.1:

To plan effectively for a post-COVID-19 environment:
• Diagnose business conditions internally and externally. Assess the impact of the pandemic on your
business model and discern how your skill needs have, could and should shift accordingly. Consider
whether and how to design and build workforce skills to influence or respond to an evolving/new
business model.
• Identify critical skills — those you need to differentiate your organisation and drive competitive
advantage. Ask how your internal skill set looks compared to competitors. Ask how quickly you can
amass the talent you need.

• Analyse the availability of skills, looking at:

o Internal supply, while differentiating between roles and skills
o External supply, where such talent is located at what cost
o External demand, while assessing who is competing for the same talent and exerting demand
cost pressure
• Create a talent plan. Creating a flexible workforce plan around both current and future skill needs takes
a combination of build and buy strategies. Labour market analytics uncover key insights about the
availability and cost of talent, which help identify an organisation’s optimal locations and footprints for
now and into the future
Remain predictive in your planning so your workforce can continue to drive strategic initiatives. Make sure to codify
and communicate the opportunities to business leaders, so they know when, how and why your talent plan must
evolve with labour market and business conditions.
Activity 4.1:
Talk to your managers as interpersonal communication is fundamental to achieving both organisational and
individual aims, goals and objectives.
Video Activity 4.1:

Succession planning is the basis for a company dealing successfully with staffing changes such as retirements,
transfers, promotions, and turnover. Succession planning is the process of preparing for inevitable vacancies
in the organisation hierarchy. Succession planning follows five logical steps - Integrate with strategy, involve
top management, Assess key talent, Follow development practices and Monitor and evaluate. The individuals
identified as possible successors should be told what specific development they need and possible action
steps to build their competencies.

There are myriad reasons, but the most common are:
▪ Time frame. Many managers are focused on executing current-year results, but workforce planning has
typically addressed a longer time frame and doesn’t show immediate gains that can help meet this
year’s results
▪ Data integrity concerns when “getting out of the gate.” Managers are reluctant to review future plans
when they feel that they can’t get a proper view of current head count
▪ Control. Some managers have gut feelings and don’t want to reference data without a compelling data
story. There is no opportunity to shift this stance until managers experience the actual pain that could
have been avoided through workforce planning
▪ Detail. Organisations have a hard time settling on the appropriate level of granularity of workforce
planning, or their job taxonomy. It’s generally understood that a workforce plan has to distinguish one

type of job from the next, but is it sufficient to look at broad labour categories, narrower job families,
individual jobs, or actual skillsets? So many organisations get into self-imposed delays in rolling out their
planning program by trying to find the perfect level at which to plan. From a planning perspective,
however, if organisations could start by planning out high-level job categories, this is a great start, and
may be enough
▪ Forecasting. Traditional forecasting methods are poor at predicting the actual individuals at risk for
turnover and retirement, and, thus, are not sufficiently actionable
Video Activity 4.2:

• Capability
• Capacity
• Cost
• Construct

1. True
2. False: Skills inventory
3. True
4. False. Succession planning
5. True
Think Point 4.3:

It is connected to the strategic plan of an entity or it can be a separate process depending on which organisation
the student is referencing.
Activity 4.2:
1. Mapping and identifying the company’s resources at T0 in order to be able to project them at T+X.
Knowing one’s resources requires precise knowledge of skills at the individual level and therefore at the
level of teams, business units, and the company as a whole.
2. Determine the gap between the present and the future situation and be able to understand this gap from
different perspectives (gap between two employees, between an employee and a position, between an
existing team and a new type of job, etc.).
3. Finally, determine the actions to be taken by HR departments (training, recruitment, internal mobility, etc.)
to fill the gap or gaps observed. In our experience, it is the calculation of the skills gap between the present
and future situation that should make it possible to determine the actions to be taken and to monitor the
impact of these actions.


1. True
2. False. Conduct an environmental analysis
3. True
4. True
5. False. External supply forecasts

Unit
5: Recruitment and Selection

5.2 The Recruitment Process • Provides a holistic understanding of how the recruitment
process takes place
5.3 Selection • Describes the process that occurs when it comes to

selection


5.1 Introduction
As discussed in the previous chapter, it is difficult to anticipate exactly how many (if any) new employees will have
to be hired each year in each job category. The role of human resource recruitment is to build a supply of potential
new hires that the organisation can draw on if the need arises. Therefore, the primary purpose of human resource
recruitment is identifying and attracting potential employees. It thus creates a buffer between planning and actual
selection of new employees.
The goal of recruiting is not simply to generate large numbers of applicants. If the process generates a sea of
unqualified applicants, the organisation will incur great expense during selection, but few vacancies will be filled
(Noe et al, 2019). Whereas recruitment encourages individuals to seek employment, the purpose of the selection
process is to identify and employ the best-qualified individuals for specific positions Wärnich et.al (2018). The key
role of recruitment and selection at its simplest level can be seen below:
External Recruitment Organisation’s
labour market activities need for
additional labour
Selection
Activities
6Figure 5.1: Steps in the Recruitment Process

Source: Wärnich et.al (2018)
Think Point 5.1

“As organisations change and the globalised world becomes a daily impact
on organisations, the processes and operations surrounding recruitment and
selection are transformed.

How will the fourth industrial revolution impact the future of work?
https://www.changerecruitmentgroup.com/knowledge-centre/how-will-the-
fourth-industrial-revolution-impact-the-future-of-work

As organisations change and the globalised world becomes a daily impact on organisations, the processes and
operations surrounding recruitment and selection are transformed. Practices surrounding 4IR and current issues
such as COVID19 global pandemic, change the face of recruitment and selection. HR practitioners needs to remain
cognisant of this.
Think Point 5.2

“As organisations change and the globalised world becomes a daily impact
on organisations, the processes and operations surrounding recruitment and
selection are transformed. Practices surrounding 4IR and current issues such
as COVID19 global pandemic, change the face of recruitment and selection.
HR practitioners needs to remain cognisant of this. “
Critically evaluate the methods organisations are utilising to respond to
current global challenges when it comes to conducting and performing their
respective recruitment and selection HR practices?
5.2 The Recruitment Process

Several factors influence the recruitment process, be it internal or external.
3Table 5.1: Factors influencing recruitment
Internal Factors External factors
(internal environment of the organisation) (external environment of the organisation)

Organisational policy: Government and trade union restrictions:
Dictates the parameters of the recruitment effort LRA (No. 66 of 1995) and EEA (No. 55 of 1998) govern
the way in which organisations employ new staff. Trade
union representatives participate in developing
recruitment policies in many organisations
Organisational culture: Labour market:
Internal culture frames the response of the HR must be familiar with trends in the labour market
organisation to the external environment.
Pay and working conditions: Image of the company:
Influence the applicant and fundamental in attracting An organisation with a positive image that practices
candidates with suitable credentials equality, fairness and supportive work environments
attracts good employees in the labour market.
Source: (Nel and Werner, 2018).


1. The primary purpose of human resource recruitment is identifying and
attracting potential employees by creating a buffer between planning and
actual selection of new employees?
2. Government, trade union restrictions, the labour market, and the image
of the company are examples of internal factors influencing the
recruitment process?
3. Organisational culture dictates the parameters of the recruitment effort?
4. The labour market in South Africa is characterised predominantly by
skilled employees?
5. Induction should follow immediately from a HR perspective once
recruitment and selection are complete?
Case Study 5.1

10 Trends That Will Shape Recruitment in 2020 by Dea Wilson.
March 17, 2020.
https://www.hrtechnologist.com/articles/recruitment-onboarding/10-trends-
that-will-shape-recruitment-in-2020/
Recruiting industry expert Dea Wilson analyses how innovation and social expertise will shape recruitment in
2020 through areas such as natural language processing, social media recruiting, and soft skills.
The recruiting industry went through some major changes in recent years. New technologies and advanced
hiring practices undoubtedly played a hand, and this disruption shows no signs of slowing as we enter the new
decade. Let's see how innovation and social expertise will shape 2020 and beyond.
1. Natural Language Processing

The single biggest trend shaping recruitment in 2020 will be the use of artificial intelligence (AI) to the source,
assess, and screen employees. The power of natural language processing (NLP) tools is set to make a key
change at every step of the way. Manually screening resumes is still one of the most time-consuming tasks
recruiters face, but with NLP, the best applicants can be identified swiftly. NLP can also be used to interact with
potential candidates and offer personalised communication with the latest chatbot technology.
Finally, NLP and voice recognition are being combined to help analyse and review candidate interviews.
However, human bias is easily carried into the behaviour of any AI model. Organisations must ensure those

producing the algorithms do so in compliance with the company-approved anti-bias guidelines to avoid
this scenario.
2. Predictive analytics
Recommender systems and predictive analytics will begin to play a larger role in the recruiting processes of
many companies. Various technology players on the market already allow recruiters to identify the best
matches for a job based on numerous parameters, such as location, experience, education, and relationship
networks. This is taken a step further with predictive analytics and recommender systems that provide recruiters
with additional insights.
These systems can generate selective lists of candidates who are best fitted for the job on offer and even
uncover candidates that are not actively seeking new opportunities. In addition to making the employee
selection process faster or activating a dormant talent pool, intelligent systems can also signal when a current
employee is getting ready to quit a current job. Smart recruiters will be using these insights to make the most
appropriate interventions and talent decisions.
3. Remote work
Flexible schedules and work-from-home policies are turning into one of the most sought after benefits that job
candidates look for, and organisations need to adapt to the work aspirations of their employees. That's why we
increasingly see more and more fully remote companies. By allowing people to work remotely, companies are
also increasing their talent pool because now they can access global talent without the limitations of
geographical boundaries. As such, we will see an increase in the use of tools and technologies that help manage
remote teams, including virtual offices, augmented and virtual reality work environments, as well as advanced
multi-media communication tools.
4. Work culture
Culture is the glue that binds a company together. However, the increase in remote work makes building and
maintaining a solid company culture more challenging. Therefore, it will become increasingly critical for
organisations to put effort into rallying the employees around their core values, company mission, and overall
vision. We will see a rise in organisations creating a dedicated role to focus solely on building company culture
and team cohesion. Part of the challenge will be to blend a company culture that can be embraced by baby
boomers, Gen Z, and Millennials - and their varying expectations and career aspirations - alike.
5. Acqui-hires
People are one of the most valuable assets in any company. While they may not show up in the balance sheet,
employees often represent the bulk of a company's value. That's why we are likely to see a growing number of

acquihires happening on the market. As recruiters increasingly spend more time and money to find the perfect
candidates, talent acquisition competition grows. Recruiters are therefore looking to different avenues to
proactively and quickly build up talent pools. Buying up companies for their human capital is one of these
techniques. However, recruiters should be mindful of culture clash during this process, which can limit the
smooth integration of the companies involved. Dedicating a multidisciplinary team to facilitate cultural integration
is paramount to the success of all acquihires.
6. Social media recruiting

As recruiters reach for the extra mile, the logical step is to go where their potential candidates really are, and
most of them are already on social media. With increased mobile usage and on-the-go interactions, recruiters
will increasingly capture users' attention on platforms like Facebook or Twitter. That's why in 2020, we will
witness more use of recruiting hashtags and eye-catching content, including videos, as part of recruitment
marketing. We will also see more organisations encourage employees to share their winning content to lure in
new employees and build up their recruiting clout.
7. Diversity
It's been proven numerous times that diverse teams perform better, so ever more HR departments, staffing
agencies, and recruiting firms will have designated staff dedicated exclusively to increasing diversity at the
companies they serve. Organisations will put more effort into tailoring job postings to attract more diverse
candidates, reshape the language in job descriptions to be more gender-neutral, and advertise jobs in diverse
community groups. We will also see an increase in the number of staffing agencies that are specialised in
diversity, challenging the status quo around underrepresented gender, race, and other similar demographics.
8. Employer branding
People want to work at companies that they can be proud of. Therefore, the most important thing for an employer
is to build their employer brand and make the vision and mission of the company crystal clear. According to
a study by CareerArc, 75% of job seekers consider an employer's brand before applying, so building content
around employee experience is crucial. That's why we will see more organisations focused on building website
sections dedicated to the company mission, employee life and stories, and other relevant employer branding
content.
9. Soft skills
According to a LinkedIn study, 89% of bad hires typically lack soft skills such as creativity, persuasion,
teamwork, collaboration, adaptability, and time management. But identifying such skills has traditionally been a
challenge, which is why recruiters are looking to revamp their assessment processes as the demand
grows. Recruiters will be increasingly interested in learning from a candidate's body language and choice of
words, as well as previous behavioural patterns, teamwork dynamics, ethical dilemmas, conflict resolution, and

other similar factors. Another soft skill that is gaining increased prominence is the candidates' ability to build
large networks across various industries and sectors. Digital platforms allow employees to amplify the reach of
any company message through their own networks, providing a significant competitive advantage in sales,
recruiting, fundraising, and overall reach.
10. Hiring quality

Technology can be leveraged to assess new candidates, but it can also be used to measure the performance
of the recruiting team. While the cost and time-to-hire are easier to quantify, the quality is a little harder to
assess. Recruiters will experiment with AI models that provide deeper insights into the quality of their hires by
analysing various defined metrics and overall performance within the team over a set period. These models will
consider not only hard skills and expertise but also new hires' soft skills and overall performance KPIs.
5.2.1 Recruitment Sources

Once management has determined an organisation’s staffing requirements, the recruitment process begins. The
first decision made is whether a job opening should be filled by someone already employed (internal – transfer or
promotion) or by an applicant from outside (external). Organisations usually recruit both internally and externally.
They tend to start with recruitment from within the company, followed by external recruitment, or both processes
are run at the same time. In each case the advantages of recruiting outside the organisation must be weighed
against the advantage of recruiting inside the organisation.

4Table 5.2 Advantages and disadvantages of internal and external recruitment
INTERNAL RECRUITMENT
Advantages Disadvantages
• Increases the morale of current employees • Unhealthy competition amongst existing

employees
• Knowledge of the person and employee • Inbreeding resulting in no new ideas

records developing
• Chain of effect of promotion is possible • Morale problem for those not promoted
• Need to hire only at entry level • Strong management development programme

is needed
• Usually faster and less expensive
• Employee is productive sooner
• Little or no orientation is needed
EXTERNAL RECRUITMENT
Advantages Disadvantages
• Applicant pool is bigger • Destroys incentive of current employees to

strive for promotion
• New ideas and contacts are brought into the • The individual’s ability to fit in with the rest of
organisation the organisation is unknown
• Reduces internal fighting • Increased adjustment problems
• Greater diversity • Takes longer for individual to become

productive
• Comprehensive orientation is required
Source: Wärnich et.al (2018)

5.2.2 Internal recruitment sources

The most prominent internal recruitment sources according to Nel and Werner (2018) are:
• Existing employees:
Internal job postings allow existing employees to apply for more desirable jobs and include traditional
bulletin boards, computer e-mail-based systems, telephone voicemail-based systems and the
company’s intranet.
• Referrals from current employees:
Referrals are prompted to apply by someone within the organisation
• Former employees:
The employer already has experience with these people, and they are easily recruited and become
productive quickly.
5.2.3 External Recruitment Sources

This occurs when employers use a source outside the organisation and include;
• Advertisements
• Employment agencies
• Tertiary institution recruiting
• Government agencies
• Flyers and direct mail
• Internship/Learnership programmes
• E-recruitment, online recruitment and the use of technology in recruitment Wärnich et.al (2018)

1. One of the disadvantages for recruiting internally is that it can result in
unhealthy competition amongst existing employees?
2. A transfer is when an employee moves from a higher position to a lower
position like a tactical level manager moving down to an operational
level?
3. Advertisements, online recruitment, and direct mail are examples of
internal sources of recruitment?
4. Internal job postings allow existing employees to apply for more
desirable jobs and include traditional bulletin boards, computer e-mail-
based systems, telephone voicemail-based systems and the company’s
intranet?

5. One of the disadvantages of external recruitment is that it destroys the

incentive of current employees to strive for promotion?
Activity 5.1
Research in detail, the various external recruitment sources referred to above
and outline the attractiveness of each method.
5.2.4 Recruitment Policies

Recruitment policies reflect the organisation’s general business strategy and describes how organisations recruit
employees of the highest calibre in accordance with employment legislation, best practice and within available
resources. A company’s recruitment policy usually includes information on the following aspects:
• Whether internal or external recruitment will take place
• If relatives of existing employees may be hired
• If part-time, or any type of flexitime workers will be considered
• If people over retirement age may be employed. (Nel and Werner, 2018)
5.2.5 Trends in recruitment

Nel and Werner (2018) state that the pressure to improve productivity will always increase and organisations will
have to look for more efficient and effective ways to utilise their resources.
1. Telecommuting
This is the new trend for many employees to maintain an office at their homes and carry out all their normal duties
while linked to the head office of their company by means of telephone, fax, personal computer and email. This is
especially beneficial to working mothers.
2. Flexi work and flexitime

Flexitime helps organisations to recruit skilled people who are unavailable for traditional full-time work and is
particularly beneficial to those employees who wish to schedule leisure activities and family responsibilities and
take care of personal business during working hours
3. Contingent workers
Are also known as temporary workers, part-time workers and just-in-time employees. Temporary help may be less
costly than hiring new permanent employees, particularly for companies with great seasonal demands or for an
un-forecasted temporary absence of important personnel (Wärnich et.al, 2018).

4. Employee leasing
Some companies lease their employees from a leasing company rather than employ workers themselves. The
leasing company is responsible for hiring, record keeping, disciplining, paying and terminating the employees. It
allows a company to adjust the size of its workforce with greater ease and avoid the many responsibilities
associated with hiring and terminating employees.
5. Compressed workweeks
It is work scheduled with less than the traditional five working days per week and is usually employed by
organisations when there is a downturn in the economy. An employee works an increased number of hours per
day so that the total number of hours remains the same as it would have been had the employee worked five days.
Think Point 5.3

Considering the various new trends in recruitment over the past decade and
their subsequent impact on HR activities, can you think of or envisage any
further trends that are likely to occur within the next ten years that will allow
for organisations and the HR department specifically, to be better equipped in
responding to the challenges posed by Covid-19 along with other external
factors?
Hiring and Recruiting in Crisis

Part 1 (Crisis Management)
https://hiring.monster.com/employer-resources/wp-
content/uploads/sites/2/2020/06/Hiring-and-Recruiting-in-a-Crisis-Part-
One.pdf
Part 2 (Urgent Hiring)
Two.pdf
Part 3 (Online recruitment and post crisis planning)
Three.pdf
The COVID-19 pandemic has caused unprecedented upheaval across the

board. Everything from the simplest task (grabbing a cup at your favourite
coffee shop), to complex decisions (how and when should your company

adapt new hiring strategies), has become a challenge. And many of those
challenges can’t easily be overcome.
The scope of the coronavirus crisis has caught us all by surprise, and the
impact has been felt by companies of all sizes, across all industries. Some
tough decisions have been (and continue to be) made regarding layoffs,
policy changes, hiring, and unfortunately, in some cases, whether to shut the
doors permanently.

1. Recruitment policies reflect the organisation’s general business strategy
and describes how organisations recruit employees of the highest calibre
in accordance with employment legislation?
2. Telecommuting has become an even more fashionable trend for
organisations since the global covid-19 pandemic?
3. Employee leasing is also known as temporary workers, part-time workers
and just-in-time employees?
4. A compressed work week is a work scheduled with less than the
traditional five working days per week and is usually employed by
organisations when there is a downturn in the economy?
5. Remote working helps organisations to recruit skilled people who are
unavailable for traditional full-time work
5.2.6 Recruiting in a multi-generational workspace

The current workspace is met with a multi-generational workforce which impacts on the way work is conducted,
dynamics of teams and relationship and work ethic. It is critical for HR to understand these dynamics and
differences in order to effectively recruit. Having baby boomers compared to the Gen Z (digital natives) are a
complete contrast, in the manner in which they respond to jobs, their perspective on careers, and how they apply
for work, including the tools at the disposal of Gen Y and Z.

7Figure 5.2: Generation Cohorts
Source: https://plusdelta314.com/generational-differences-change-change/
Activity 5.2
Consider a multi-generational workforce and the new trend of the GIG
economy. Evaluate how this trend will impact on the recruitment process?
Video Activity 5.1

Watch the video: Recruiting Gen Z vs Recruiting Millennials: A Whole New
Ballgame
https://www.youtube.com/watch?v=XqmA7InLKwM
Differentiate between Gen Z and Millennials?

KPMG has a global network of member firms operating in 150 countries
employing over 138 000 people. Thus, KPMG must recruit a large number of
professionals every year to cope with its fast business expansion.

KPMG uses several employment branding strategies to attract top talent

including holding career talks and information sessions at universities and
recruitment fairs, organising company visits and holding student interview
workshops.
In Hong Kong, KPMG’s innovative Web site, Virtual Career Fair

(http://vcf.kpmg.com.hk), offers job seekers comprehensive business and
career information, selection criteria, mock tests, and interview tips. KPMG
also provides internships for both accounting and non- accounting students.
Interns who perform well will undergo a faster selection process and receive
early job offers.
Question: Outline examples of tips that can be considered useful during an

interview?
Video Activity 5.2

Watch the video: Recruiting Gen Z vs Recruiting Millennials: A Whole New
Ballgame
https://www.youtube.com/watch?v=XqmA7InLKwM
Differentiate between Gen Z and Millennials?

KPMG has a global network of member firms operating in 150 countries
employing over 138 000 people. Thus, KPMG must recruit a large number of
professionals every year to cope with its fast business expansion. KPMG uses
several employment branding strategies to attract top talent including holding
career talks and information sessions at universities and recruitment fairs,
organising company visits and holding student interview workshops.
In Hong Kong, KPMG’s innovative Web site, Virtual Career Fair

(http://vcf.kpmg.com.hk), offers job seekers comprehensive business and
career information, selection criteria, mock tests, and interview tips. KPMG
also provides internships for both accounting and non- accounting students.
Interns who perform well will undergo a faster selection process and receive
early job offers.

Question: Outline examples of tips that can be considered useful during an

interview?
5.3 Selection
Selection pulls together organisational goals, job design and performance appraisal as well as recruitment. Finding
and hiring the best person for a job is a complex process of data gathering and decision-making that does not
occur through a sudden awareness of some insight. Selection is the process of trying to determine which individuals
will best match jobs in the organisational context in terms of achieving its set objectives, considering individual
differences, the requirements of the job and the organisation’s internal and external environments. The selection
process should not be undertaken without knowing which factors can influence the selection decision.
Think Point 5.4

Research the various pre-employment tests that companies use during the
selection process and ponder on each one by providing a brief description of
each?
5.3.1 Factors influencing Selection

5Table 5.3: The factors influencing selection
External factors Internal factors
• Legislation • Size of the organisation

• Community • Motivation of interest
•
Political stability • Job environment
•
• Cultural background • Organisational culture
• The labour markets • Type of organisation
Geographic location Organisational objectives
•
• Speed of decision-making
• Applicant pool
• Selection methods
Source: (Nel and Werner, 2018)

5.3.2 The Selection Process

The selection process is a series of steps through which applicants pass. These steps represent the ‘tools’, or
methods of selection. The steps are mainly several eliminators, because as applicants drop out of the process at
each step, the applicant pool becomes smaller (Nel and Werner, 2018).
Employment tests
Recruiting process completed
Initial screening Reference checks
Gather information about applicant Final selection by line managers
Evaluate qualification of each applicant Medical checks
Application blank Appointment
Interview/s Placement on the job (induction

begins)
8Figure 5.3: Steps in the Selection Process
(Source: Nel and Werner, 2018).

1. Initial Screening
After the recruiting process is completed, the selection process starts with an initial screening of CV’s. The aim of
the initial screening process is to eliminate candidates that do not meet the requirements of the vacancy (Nel and
Werner, 2018). In reviewing CV’s or letters from applicants, the HR officer must determine which applicants have
the minimum qualifications indicated in the job description and job specification (Wärnich et.al, 2018).
The initial screening could also produce other gains in the organisation’s interests. The HR person doing the initial
screening would be aware of multiple positions in the organisation and may be able to direct these applications in
favour of other open positions. This kind of screening activity does not only create goodwill for the organisation but
also maximises the effectiveness of the selection process.
2. Application form
Also known as an application blank, the application form is a formal record of an individual’s application for
employment (Wärnich et.al, 2018). Applicants are required to sign the form certifying the information contained is
true and that they agree for their application to be rejected in the case of any false claims. The form should also
request permission to do reference and background checks.

A recent trend among employers is to use online applications forms that compel applicants to complete required
fields before submitting applications. This eliminates the problem of screening incomplete application forms.
Applicants who are rejected must be informed either telephonically or in writing that their application was
unsuccessful. Candidates whose application forms or CVs closely match the requirements of the job are invited to
the organisation for an interview (Nel and Werner, 2018).
3. Employment tests
An employment test is used to investigate a sample of behaviour in the workplace. The use of tests is carefully
regulated by governments and professional boards. The primary reason for administering tests is to check for the
applicant’s aptitude for the job, personality fit for the job role and into the organisational culture, to check for ability
to do the job and how motivated a potential applicant is to do the job. The advantage of using tests is that they
provide accurate results and provide organisations with a way to identify skills that may be difficult to assess in an
interview. They are also low cost to administer but the disadvantages of using tests are that they may
unintentionally discriminate among candidates (Nel and Werner, 2018).
4. Interviews
The purpose of the interview according to Wärnich et.al (2018), is to determine;
Whether the applicant can perform the job
Whether the applicant will be motivated to be successful
Whether the applicant will match the needs of the organisation
Research however has consistently shown that the selection interview is low in both reliability and validity for the
following reasons:
• Interviewers must constantly work to reduce personal biases – biases can be positive as well as
negative. The gender of the interviewer or interviewee affects the total evaluation of the interview
situation and this problem occurs even with trained, experienced interviewers
• The content of the interviews changes because no two interviewees have the same background and
experience
• The setting of the interview may affect the outcome. If one interview takes place early in the morning
when the interviewer is fresh and the next interview is conducted late in the afternoon when the
interviewer is in a hurry to leave, the second interviewee may receive less support when the
interviewees are compared. Also, an applicant interviewed right after the interviewer has seen an
extremely impressive applicant is more likely to get a less positive interview evaluation than normal, but
an applicant following a poor applicant may get a higher evaluation than normal
• If the company has established a maximum number of people to interview and a deadline for filling the
position, additional pressure is placed on the interviewer. The last applicant to be interviewed may be
offered the position if the interviewer is in a hurry to fill it. Thus, the applicant may fill a position that
otherwise would not have been offered (Wärnich et.al 2018)

Video Activity 5.3

Watch the video: The Different Types of Job Interviews
https://www.youtube.com/watch?v=2944S2GOzRw
Provide examples of the different types of interviews that can be adopted and
utilised by organisations in industry?
a. Types of interviews
There are several types of interviews that can be used but examples of the common ones include:
• Structured interview
A structured or patterned interview requires the interviewer to ask a series of predetermined, job-related questions
• Behavioural interview
These are structured interviews with questions that reveal specific choices the applicants have made in the past
and the circumstances surrounding those choices. This type is more flexible than situational questioning and allows
candidates to explain their skills in real events from their own experience, rather than having to imagine a
hypothetical situation
• Semi-structured interview
The interviewer must stay in control of the interview and constantly keep in mind the objectives set for this meeting.
Although these questions are used to guide the interview, the interviewer can also probe into areas that seem to
merit further investigation. Unstructured or non-directive interview. The interviewer does not plan the questions or
the course of the interview in advance (Nel and Werner, 2018)
5. Reference Checks
Reference checks are a confirmation or validation from persons that are familiar with the applicant and that support
the accuracy of information furnished by the candidate in his or her application (Nel and Werner, 2018).
6. Medical Checks
After a decision has been made to extend a job offer, the next step in the process involves a physical/medical
examination. The main reasons for making a physical examination a pre-employment condition are:
• To ensure that the applicant qualifies for the physical requirements of the position
• To discover any medical limitations of the applicant
• To establish a record and baseline of the applicant’s health
• To reduce absenteeism and accidents by identifying health problems
• To detect communicable diseases that may be unknown to the applicant (Nel and Werner, 2018)

7. Offer of employment and appointment

If a candidate makes it all the way through the above steps, he or she has a very good chance of receiving a job
offer. Job offers are usually made verbally and then backed up with a written offer (Nel and Werner, 2018).
5.4 Summary
This unit discusses the human resource function of recruitment and selection. This used to be a straightforward
process of advertising, shortlisting, interviews, selection tests and appointment of candidate. These are now seen
as somewhat traditional methods. Although some companies still make use of these methods, the cutting edge
and technology forward organisations have transformed. Changes in these processes are as a result of global and
environmental changes. These include 4IR trends which has impacted tremendously on recruitment and selection.
This begins with the multigenerational workplace and the fact that recruitment has a very different audience. The
millennials and digital natives respond to online methods of recruitment, their work ethics in different and they are
not seeking “jobs for life”. These individuals are seeking a specific company culture which they can align with. They
also seek the flexibility of the GIG economy where they can choose the number of jobs, hours and income. In
addition to these changes, is the impact that a global pandemic such as COVID-19 can make on organisations.
Organisations are being forced to process interviews and selection online and having new employees work
remotely.
Revision Questions
1 Evaluate the relative merits of internal versus external recruitment and
discuss what might influence an organisation to switch from internal to
external recruitment or vice versa.
2 The selection process at ZA’s Clothing has been completed and the final
decision has been made to appoint the candidate. Marco is the applicant
who demonstrated the best fit with both the job and the organisation. As
HR manager, draft a letter of appointment to Marco detailing all the
necessary requirements requesting him to complete, sign and return the
form to you.
3 Examine which of the current trends has the greatest impact on
recruitment and selection
4 Explore whether trends used in crisis management such as for COVID-19
can be used for future crises?

Think Point 5.1:

As a result of the covid-19 global pandemic, organisations have experienced a shift in the methods previously
adopted to conduct and perform HR activities such as recruitment and selection. The use of more
telecommunications technology has been adopted and platforms such as Skype, Zoom and MS Teams are being
utilised to conduct recruitment, interviewing and selection processes. These methods could possibly be the future
ways do conduct certain HR activities as they can prove to be efficient and sometimes effective.

In addition to new roles and responsibilities, the 4th Industrial Revolution could also lead to more companies
employing specialist contractors or remote workers. Due to new technology and changing demands, employers
may also become more supportive of existing employees wanting to work remotely or flexibility.

1. True
2. False. External factors
3. False. Organisational policy
4. False. Semi-skilled and unskilled employees
5. True
Case Study 5.1:

Indications are that e-recruitment transforms the traditional recruitment process into a time- and space-
independent, collaborative hiring process. The most significant changes are recorded in the sequence and
increased divisibility of main recruitment tasks. Organisations have had to rapidly adapt to changes that are
occurring within macro environment with social and economic variables being the largest drivers of change. The
traditional ways of conducting activities such as recruitment are fast becoming obsolete and organisations that fail
to grasp and adapt sooner rather than later may also face a similar faith.

1. True
2. False. Demotion
3. False. External
4. True
5. True

Activity 5.1:
This occurs when employers use a source outside the organisation and include:
• Advertisements: can reach a greater audience
• Employment agencies: well networked and have inside information which can assist in placement
• Tertiary institution recruiting: students and graduates are a good source for entry level positions
• Flyers and direct mail: can target specific people in a geographical location
• Internship/Learnership programmes: an excellent source for grooming of future employees
Think Point 5.2:

Here are examples of emerging trends that should have a big impact on your recruiting strategy in the future:
• Remote working
• Candidate experience
• Diversity and inclusion
• Contingent workers
• Analytics and AI
• Skills and competencies

1. True
2. True
3. False. Contingent workers
4. True
5. False. Flextime
Activity 5.2:
The gig economy uses digital platforms to connect freelancers with customers to provide short-term services or
asset-sharing. Examples include food delivery apps, and holiday rental apps. It's a growing segment, bringing
economic benefits of productivity and employment and may also result in obsoleteness for traditional methods.
Video Activity 5.1:

The millennial generation were born between 1981 and 1996, while those in Gen Z were born between 1997 and
2012. In 2019, millennials are between 22 and 38 years old and Gen Zers are between six and 21 years old.


• Avoid explaining your full work history
• Avoid speaking negatively about previous employers
• Do not arrive late for your interview
• Research the organisation before the interview
• Be transparent and honest
Activity 5.2:
There are several different tests that can be used during this process. Examples of which include:
• Performance Test: have been designed to determine to what extent the applicant is already able to
do what is expected in the job advertised. Thus a prospective mechanic may be asked to repair
the gearbox of a car within a certain time, a programmer may be expected to explain how a
certain computer program has been developed or a typist may be expected to type a letter in a
certain time without exceeding a percentage of mistakes
• Intelligence Test: are designed to determine the intellectual ability of the applicant. Although the
intelligence test can be useful for selecting individuals, for example for training, high intelligence
is not in itself a valid predictor of success in the work situation. Intelligence tests do, however, help
to ensure that only applicants who meet the minimum intelligence requirements for a job will be
considered for employment
• Aptitude Test: measure the ability to learn a specific task. Some of these can measure a multitude of
skills such as clerical speed, verbal ability, abstract reasoning ability, mechanical aptitude and
numerical skill. An understanding of spatial relationships and spelling and sentence construction
can also be indicated. Specific aptitude tests measure the skills that are necessary to carry out a
specific task, such as mechanical skill for the prospective car mechanic
• Psychological Test: the use of such tests must be justified on moral and ethical grounds because
of its effect on the candidates. It is therefore of the utmost importance that testing should be done by
registered practitioners. The validity of the tests used and their reliability should already have been
statistically proven
Video Activity 5.2:
• Telephonic interview
• Traditional interviews
• Lunch interview
• Panel interview

• Extended or day long interview
Think Point 5.3

Hiring and Recruiting in Crisis
Part 1 (Crisis Management)
https://hiring.monster.com/employer-resources/wp-content/uploads/sites/2/2020/06/Hiring-and-Recruiting-in-a-
Crisis-Part-One.pdf
Part 2 (Urgent Hiring)
Crisis-Part-Two.pdf
Part 3 (Online recruitment and post crisis planning)
Crisis-Part-Three.pdf
The COVID-19 pandemic has caused unprecedented upheaval across the board. Everything from the simplest
task (grabbing a cup at your favourite coffee shop), to complex decisions (how and when should your company
adapt new hiring strategies), has become a challenge. And many of those challenges can’t easily be overcome.
The scope of the coronavirus crisis has caught us all by surprise, and the impact has been felt by companies of all
sizes, across all industries. Some tough decisions have been (and continue to be) made regarding layoffs, policy
changes, hiring, and unfortunately, in some cases, whether to shut the doors permanently.
Video Activity 5.3:

• Structured interview
A structured or patterned interview requires the interviewer to ask a series of predetermined, job-related questions
These are structured interviews with questions that reveal specific choices the applicants have made in the past
and the circumstances surrounding those choices. This type is more flexible than situational questioning and allows
candidates to explain their skills in real events from their own experience, rather than having to imagine a
hypothetical situation
• Semi-structured interview
The interviewer must stay in control of the interview and constantly keep in mind the objectives set for this meeting.
Although these questions are used to guide the interview, the interviewer can also probe into areas that seem to
merit further investigation. Unstructured or non-directive interview. The interviewer does not plan the questions or
the course of the interview in advance (Nel and Werner, 2018)

Think Point 5.4

1. Initial Screening
After the recruiting process is completed, the selection process starts with an initial screening of CV’s. The aim of
the initial screening process is to eliminate candidates that do not meet the requirements of the vacancy (Nel and
Werner, 2018). In reviewing CV’s or letters from applicants, the HR officer must determine which applicants have
the minimum qualifications indicated in the job description and job specification (Wärnich et.al, 2018).
The initial screening could also produce other gains in the organisation’s interests. The HR person doing the initial
screening would be aware of multiple positions in the organisation and may be able to direct these applications in
favour of other open positions. This kind of screening activity does not only create goodwill for the organisation but
also maximises the effectiveness of the selection process.
2. Application form
Also known as an application blank, the application form is a formal record of an individual’s application for
employment (Wärnich et.al, 2018). Applicants are required to sign the form certifying the information contained is
true and that they agree for their application to be rejected in the case of any false claims. The form should also
request permission to do reference and background checks.
A recent trend among employers is to use online applications forms that compel applicants to complete required
fields before submitting applications. This eliminates the problem of screening incomplete application forms.
Applicants who are rejected must be informed either telephonically or in writing that their application was
unsuccessful. Candidates whose application forms or CVs closely match the requirements of the job are invited to
the organisation for an interview (Nel and Werner, 2018).
3. Employment tests
An employment test is used to investigate a sample of behaviour in the workplace. The use of tests is carefully
regulated by governments and professional boards. The primary reason for administering tests is to check for the
applicant’s aptitude for the job, personality fit for the job role and into the organisational culture, to check for ability
to do the job and how motivated a potential applicant is to do the job. The advantage of using tests is that they
provide accurate results and provide organisations with a way to identify skills that may be difficult to assess in an
interview. They are also low cost to administer but the disadvantages of using tests are that they may
unintentionally discriminate among candidates (Nel and Werner, 2018).
Practical Application or Example 5.3

Student is required to apply theory and knowledge learnt

Unit
Unit
6: U Training Needs Analysis

6.2 A Systems Approach to Training and • Provides a holistic understanding of the systems
Development approach to training and development
6.3 Stages of the Training Process • Describes the various stages of the training process


6.1 Introduction
Training refers to a planned effort by an organisation to facilitate the learning of job-related competencies,
knowledge, skills, and behaviours by employees. The goal of training is for employees to master the knowledge,
skills, and behaviours emphasised in training and apply them to their day-to-day activities. Traditionally companies
have relied on formal training through a course, programme, or event to teach employees the knowledge, skills,
and behaviours they need to successfully perform their jobs.
Formal training refers to training and development programmes, courses, and events that are developed and
organised by the company. Typically, employees are required to attend or complete these programmes, which can
include face-to-face training programmes (such as instructor-led courses) as well as online programmes (Noe
et.al., 2019). Development refers to formal education, job experiences, relationships and assessment of personality
and abilities that help employees prepare for the future but because it is future oriented, it involves learning that is
not necessarily related to the employee’s current job.
Traditionally training focuses on helping employees’ performance in their current jobs. Development prepares them
for other positions in the company and increases their ability to move into jobs that may not yet exist. Development
also helps employees prepare for changes in their current jobs that may result from new technology, work designs,
new customers or new product markets. Development is especially critical for talent management, particularly for
senior managers and employees with leadership potential.
As training continues to become more strategic (related to business goals), the distinction between training and
development will blur. Both training and development will be required and will focus on current and future personal
and organisation needs (Noe et.al., 2019).
Think Point 6.1

“Lifelong learning provides employees with continuing learning experiences
over their tenure with an organisation, with the aims of ensuring that they have
the opportunity to learn skills they need to do their jobs and to expand their
occupational horizons.”
Based on your experience thus far, discuss whether you think that South
African organisations are embracing this concept of lifelong learning or are
they procrastinating with its implementation to staff as they view it as an
unnecessary expenditure?

Activity 6.1
Read the article: 5 Reasons Conducting A Training Needs Analysis Is Required
for Success by Kim Morrison. 24 January 2019.
https://elearningindustry.com/training-needs-analysis-required-success-5-
reasons-conducting
Critically analyse the benefits obtained by an organisation that performs a

training needs analysis?
6.2 A Systems Approach to Training and Development

Since training and development is a complex system, it is essential that it is linked to the organisation’s objectives,
goals and business strategies if it is to add value and contribute to the bottom line. This process is known as
strategic training and development and is evident when it:
• Develops essential employee capabilities that are linked to the organisation’s strategic plan
• Encourages adaptability to change
• Promotes ongoing learning in the organisation
• Creates and disseminates new knowledge throughout the organisation and facilitates communication
and focus (Wärnich et.al, 2018)
Video Activity 6.1

Watch the video: Systems Approach to Training
https://www.youtube.com/watch?v=mz8eFksptpk
Critically evaluate the steps involved during the systematic approach to
training (SAT)?

How has Covid-19 impacted on training needs analysis?
https://reliefweb.int/report/world/covid-19-learning-needs-assessment-may-
2020
6.3 Stages of The Training Process

According to Noe et. al (2019) there are six stages of the training process which emphasises that effective training
involves more than just choosing the most popular training method.
Stage 1: Needs assessment / Needs analysis
• Organisational analysis

• Person analysis
• Task analysis
Stage 2: Ensure employees’ readiness for training

• Attitudes and motivation
• Basic skills
Stage 3: Creating a learning environment

• Identification of learning objectives and training outcomes
• Meaningful material
• Practice
• Feedback
• Observation of others
• Administering and coordinating programme
Stage 4: Ensure transfer of training

• Self-management strategies
• Peer and manager support
Stage 5: Selecting training methods

• Presentational methods
• Hands-on methods
Stage 6: Evaluating training programmes

• Identification of training outcomes and evaluation design
• Cost-benefit analysis
6.3.1 Needs Analysis

A key characteristic of training that contributes to competitiveness is that they are designed according to the
instructional design process. Training design process refers to a systematic approach for developing training
programmes (Noe et. al., 2019). The terms “analysis” and “assessment” are often used interchangeably in the
context of determining training needs.
“Training-needs analysis” can be defined as a process of identifying an issue or problem, collecting, analysing and
interpreting data, and using the information obtained to select or design an appropriate HRD intervention to address
the issue or problem (Meyer, 2017). The implementation of the Skills Development Act of 1998 requires

organisations (with some exceptions, including small and micro enterprises) to submit a workplace skills plan to
the relevant SETA for approval and for recovery of part of the levy.
This workplace skills plan is a comprehensive document which requires the employer to give detailed information
regarding:
• The current skills profile by number of employees in population groups and educational levels
• The skills priorities and the number of beneficiaries in population, gender and occupational groups
• The process used to develop the workplace skills plan

1. Training refers to a planned effort by an organisation to facilitate the
learning of job-related competencies, knowledge, skills, and behaviours
by employees?
2. The process of linking training and development to an organisation’s
objectives, goals and business strategies is known as tactical training
and development?
3. According to Noe et. al (2019) there are five stages of the training
process which emphasises that effective training involves more than just
choosing the most popular training method?
4. Organisational analysis, person analysis and task analysis are all part of
a needs assessment?
5. Stage five of the training process is selecting the training methods?
• The steps used to consult employees about the plan, for instance, whether a training committee has
been established
• The plan’s relationship to the organisation’s employment equity plan
Case Study 6.1

Read the case study below and answer the questions that follow:
Reinventing the Wheel at Apex Door Company
Written by Gary Dessler, PhD.
Jim Delaney, president of Apex Door, has a problem. No matter how often he
tells his employees to do their jobs, they invariably “decide to do it their way,”
as he puts it, and arguments ensue between Jim, the employee, and the
employee’s supervisor. One example is the door-design department, where

the designers are expected to work with architects to design doors that meet
the specifications. While it’s not “rocket science,” as Jim puts it, the designers
invariably make mistakes-such as designing in too much steel, a problem that
can cost Apex tens of thousands of wasted dollars, once you consider the
number of doors in, say, a 30 story office tower.
The order processing department is another example. Jim has a very specific
and detailed way he wants the order written up, but most of the order clerks
don’t understand how to use the multipage order form. They simply improvise
when it comes to a detailed question such as whether to classify the customer
as “industrial” or “commercial.” The current training process is as follows. None
of the jobs has a training manual per se, although several have somewhat out-
of-date job descriptions.
The training for new people is all on the job. Usually, the person leaving the
company trains the new person during a 1 or 2 week overlap period, but if there
is no overlap, the new person is trained as well as possible by other employees
who have filled in occasionally on the job in the past. The training is the same
throughout the company- for machinists, secretaries, assemblers, engineers,
and accounting clerks, for example.
Questions:
1. Identify three significant reasons as to why Apex are experiencing the
problems that they currently face?
2. What role should job descriptions play in training at Apex?
3. Explain in detail what you would do to improve the training process at
Apex?
Source: Dessler, G. 2021. Reinventing the Wheel at Apex Door Company.
[Online]. Team Paper Warehouse. Available:
https://www.termpaperwarehouse.com/essay-on/Reinventing-The-Wheel-At-
Apex-Door/240102 [04 July 2021]
6.3.2 The needs-analysis process

A generic process approach to needs analysis, as developed by Meyer (2017), can be used to ensure that needs
are identified and correctly analysed. It consists of a series of steps as depicted in Figure 6.1.

Collect information on an ongoing basis to identify potential issues or problems

↓
If an issue or performance problem is identified, consult with
management to agree whether it is related to training
↓
If it is training-related, identify relevant criteria (norms, benchmarks, work
standards and desired current or future performance levels)
↓
Select a data collection method and procedures appropriate to the issue or problem being analysed
↓
Collect data and analyse results; compare information with relevant criteria to determine the gap; draw
conclusions
↓
Report results and recommendations to the client for inclusion in the
workplace skills plan if it is considered a strategic priority
↓
If the recommendations are accepted, use identified needs for selecting or designing the intervention
9Figure 6.1: Key steps in Conducting training-needs analysis (Meyer, 2017)
Think Point 6.2

Considering the current organisational climate that many business entities in
various industries and sectors are experiencing as a result of Covid-19,
discuss how the HR department and HR professionals are responding to the
challenge of efficiently conducting a training needs analysis when majority of
the staffing compliment is still working from home?
Needs assessment according to Noe et al. (2019) typically involves organisational analysis, person analysis and
task-analysis.
Organisational analysis considers the context in which training will occur and involves determining the business
appropriateness of training, given the company’s business strategy, its resources available for training and support
by managers and peers for training activities.
Three factors need to be considered before choosing a training programme:
• Support of managers and peers – if peers’ and managers’ attitudes and behaviours are not supportive,
employees are not likely to apply training content to their jobs
• Company strategy – it is important to identify the prevailing business strategy and goals to ensure that
the company allocates enough of its budget to training, that employees receive training on relevant
topics and that employees get the right amount of training

• Training resources – it is necessary to identify whether the company has the budget, time and expertise
for training
Person analysis helps identify who needs training and involves;

• Determining whether performance deficiencies result from a lack of knowledge, skill or ability (a training
issue) or from a motivational or work-design problem
• Identifying who needs training; and
• Determining employees’ readiness for training
Person analysis helps the manager identify whether the training is appropriate and which employees need training.
A major pressure point for training is poor or substandard performance – that is, a gap between employees’ current
performance and their expected performance. Poor performance is indicated by customer complaints, low
performance ratings or on-the-job accidents or unsafe behaviour. Another potential indicator of the need for training
is if the job changes so current performance levels need improvement or employees must complete new tasks.
From a manager’s perspective, to determine if training is needed, for any performance problem, you need to
analyse characteristics of the performer, input, output, consequences and feedback.
Task analysis includes identifying the important tasks and knowledge, skill and behaviours that need to be
emphasised in training for employees to complete their tasks. The conditions include identifying equipment and
the environment the employee works in, time constraints (deadlines), safety considerations, or performance
standards. Task analysis results in a description of work activities, including tasks performed by the employee and
the knowledge, skills and abilities required to successfully complete the tasks.
(A job is a specific position requiring the completion of specific tasks. A task is a statement of an employee’s work
activity in a specific job.)
The four steps in a task analysis include;

1) Identifying the job(s) to be analysed
2) Developing a list of tasks performed on the job
3) Validating or confirming the tasks
4) Identifying the knowledge, skills, abilities and other factors (e.g. equipment, working conditions) needed to
successfully perform each task
6.3.3 Ensure Employees’ Readiness for Training

Readiness for training refers to employee characteristics that provide employees with the desire, energy and focus
necessary to learn from training. The desire, energy and focus are referred to as motivation to learn and this
influences mastery of all types of training content, including knowledge, behaviour and skills. Managers can ensure

that employees’ motivation to learn is high by ensuring employees’ self-efficacy, understanding the benefits of
training, being aware of training needs, career interests and goals; understanding work environment characteristics
and ensuring employees’ basic skill levels.

1. The terms “analysis” and “assessment” are often used interchangeably
in the context of determining training needs?
2. The implementation of the Skills Development Act of 1998 requires
organisations (with some exceptions, including small and micro
enterprises) to submit a workplace skills plan to the relevant SETA for
approval and for recovery of part of the levy?
3. A person analysis considers the context in which training will occur and
involves determining the business appropriateness of training, given the
company’s business strategy, its resources available for training and
support by managers and peers for training activities?
4. Task analysis includes identifying the important tasks and knowledge,
skill and behaviours that need to be emphasised in training for
employees to complete their tasks?
5. Job analysis refers to an individual's belief in their capacity to execute
behaviours necessary to produce specific performance attainments?
6.3.4 Creating a learning environment

For employees to acquire knowledge and skills in the training programme and apply this information in their jobs
the training programme must include specific learning principles. For learning to occur in the training programme
it must meet the following conditions:
• Need to know why they should learn
• Meaningful training content
• Opportunities for practice
• Feedback
• Observe, experience and interact with training content, other learners and the instructor
• Good programme coordination and administration
• Commit training content to memory
6.3.5 Ensuring transfer of training

Transfer of training refers to on-the-job use of knowledge, skills and behaviours learned in training.

Transfer of training is influenced by:

• Manager support
• Peer support
• Opportunity to use learned capabilities
• Technology support
• Self-management skills
6.3.6 Selecting training methods

Several different methods can help employees acquire new knowledge, skills and behaviours. The instructor-led
classroom remains the most frequently used training method. It is important to note that the use of online learning,
mobile learning and social networking for training continues to increase and expectations are that this trend will
continue.
One estimate is that nearly 40% of executives plan to use tablets such as the iPad into their new training and
development initiatives. These devices are expected to be used for learning and performance support but also for
coaching and mentoring employees, mobile gaming and microblogging (e.g., Twitter).
Regardless of the training method, for training to be effective, needs assessment, a positive learning environment
and transfer of training are critical for training programme effectiveness.
Think Point 6.3

“Training-needs analysis” can be defined as a process of identifying an issue
or problem, collecting, analysing and interpreting data, and using the
information obtained to select or design an appropriate HRD intervention to
address the issue or problem (Meyer, 2017).
Which aspect of a training needs analysis do you think is more important, the
creation of a learning environment allowing for the exchange and transfer of
important skills and knowledge or the selection of the most efficient training
method to allow for exchange and transfer of important skills and knowledge?
6.3.7 Evaluating training programmes

Training evaluation can provide useful information including the programme’s strengths and weaknesses,
identifying which learners benefited the most and least from participating, determining the programme’s financial
benefits and costs and allowing the comparison of the benefits and costs of different programmes. Examining the
outcomes of a programme helps in evaluating its effectiveness. These outcomes should be related to the
programme objectives which help trainees understand the purpose of the programme (Noe et.al, 2019).

Training evaluation forms the last link in the loop of the systems approach to training and development, since it
determines whether the training need (the difference between the required performance and the actual
performance of the trainee) was satisfied. Without measuring what happened, the training department and its
efforts cannot be effectively assessed. It also forms the starting point for the next round of training and development
if needed. The following aspects regarding the evaluation of training and development are of vital importance if it
is to be successful:
• The evaluation of training is a continuous process and not something that occurs only at the end of the
training period
• Training evaluation must be well planned, and objectives must be clearly indicated. Training evaluation
is not conducted on an ad hoc basis
• Accurate and applicable measuring instruments must be used to obtain information for the purposes of
decision-making
• Training evaluation is a form of quality control
• Evaluation is not directed only at testing learners, but also at testing the entire training system
(Nel and Werner, 2018)

1. For employees to acquire knowledge and skills in the training
programme and apply this information in their jobs the training
programme must include specific learning principles?
2. The social networking method remains the most frequently used training
method?
3. Regardless of the training method, for training to be effective, needs
assessment, a positive learning environment and transfer of training are
critical for training programme effectiveness?
4. The evaluation of training is a once-off process and not something that
occurs only at the end of the training period?
5. Training evaluation forms the last link in the loop of the systems
approach to training and development, since it determines whether the
training need (the difference between the required performance and the
actual performance of the trainee) was satisfied?

6.4 Summary
The training process, like most of the HR processes have undergone change. Initially training or skills programmes
would be conducted on a group approach. In South Africa, due to the skills differentials caused by apartheid, grants
were given to organisations so that they would be enticed to send employees on training to raise their level of skill.
Initially the mass approach was taken, and evaluation was not consistent. However, organisations are now seeing
the value of training to align to strategic functions such as development programmes and retention strategies.
Organisations are taking training more seriously as many of them are choosing to opt to be a learning organisation
for a constant focus on employee development.
Learning organisations may develop as a result of the pressures facing modern organisations; this enables them
to remain competitive in the business environment. The 5 characteristics of a learning organisation are
Collaborative Learning Culture (Systems Thinking), "Lifelong Learning" Mind-set (Personal Mastery), Room for
Innovation (Mental Models), Forward-Thinking Leadership (Shared Vision) and knowledge Sharing (Team
Learning).
Activity 6.2
Explain the significance of training evaluation by highlighting the last link in the
loop of the systems approach to training and development?
Revision Questions
1. Examine the definition of strategic training and development?

2. Assume you have been appointed as Chief Learning and Development
Officer for the organisation at which you are currently employed or an
organisation you aspire to be employed at;
a. Evaluate how you would ensure that training at this organisation is
strategic in nature.
b. Explain how would you support the delivery of learning considering the
advances in technology?
c. Examine how you would undertake a needs analysis at this organisation

Activity 6.1:
1. Identify knowledge gaps before they become a problem
One huge benefit of conducting training needs analysis is the fact it can help you identify any knowledge gaps your
employees may have before it becomes an issue. It’s better to highlight a potential problem and tackle it head-on,
rather than becoming aware of the skills gap when an issue arises because of it. The training needs analysis will
allow you to take a proactive approach rather than waiting for something to go wrong before you realise there is a
problem.
2. Helps to plan training for the year

Another huge benefit of training needs analysis is that it makes it much easier for you to plan your training for the
upcoming year (or whatever block of time you work with). Once you have identified the skills gaps that exist in your
business, and then all the staff members who need additional training in certain areas, it’s easy to pull together a
training plan which will cover all these skills gaps. Rather than trying to guess the type of training that will be most
useful to your organisation, or who needs to complete the training, your training needs analysis will make the whole
task much easier, and you can be confident that the training you have selected will make a direct impact on your
business!
3. Highlights training that may not have been considered

It can be hard to sit down and plan out a training schedule for a large organisation without completing some sort
of background research first. You may think that you know the type of training your team should be completing,
but training needs analysis could highlight a whole load of areas that your team needs training on that you never
even considered before. That’s why training needs analysis is so useful because it can highlight training needs
you may not have considered before and show that you need to start offering training in different areas to ensure
your staff are performing at their best. Without the use of training needs analysis, you may never have considered
an area of training, which could have severely hindered your business.
4. Ensures training is focusing on the right areas

As we said above, it’s important to have concrete reasons for adding training to your training schedule, as you
can’t just assume what is and isn’t important for your team to learn. Completing a training needs analysis will allow
you to see exactly what you need to focus on, but it will also highlight the areas your team really don’t need any
further training on for the moment. If there are no apparent gaps in knowledge in an area, then running further
training on it could be a waste of time and money!

5. Helps decide who should attend which training sessions

Another important step in planning training is to ensure the right people are in the right training sessions. There is
no point in making everyone in your organisation attend every training session you run. It’s a massive waste of
time and money for your business, and staff won’t be engaged with training sessions if they are frequently attending
training which is of no use to them. A training needs analysis will enable you to target the correct people for each
training session, ensuring everyone is following a personalised training plan, so they get the most benefit possible.
Think Point 6.1:

It is evident that South African organisations are still seriously lacking when it comes to investing in the training
and development of their staff. Often it can be as a result of inadequate financial resources to implement such
practices but even in entities that do possess the financial resources required, there seems to be a hesitancy with
outlaying and implementing programs to develop, enrich, and enhance staff which is perhaps to the incorrect
ideology that training and development is an unnecessary expenditure which will not benefit the organisation long-
term.
Video Activity 6.1:

• Identify training needs: can be accomplished by exploring overall performance of employees, comparing
your organisation to similar establishments, performing individual assessments, considering your
industry and establish which aspects employees are lacking.
• Plan and design training: designing a training program involves a series of steps from identifying the
learning objectives, determining the training content, deciding the methodologies, selecting the learning
activities, defining evaluation criteria and to specifying follow-up activities.
• Implement training: this is where the training program comes to life. Organisations need to decide
whether training will be delivered in-house or externally coordinated. During training, participant
progress should be monitored to ensure that the program is effective.
• Evaluate results: here we see if the results have been of benefit to the employees and the organisation.

• Shifting programme priorities: COVID-19 has led to a suspension of programmes or a shift in focus
to COVID-19 programming across the sector.
As a result, respondents are having to undertake more remote management and delivery of
programmes. Much interest has arisen around COVID-19 related programmes, while at the same
time as organisations are making great efforts to keep existing programming going.
• New ways of working: Staff or organisations are working from home, forced to consider alternative
ways of service delivery and management and have been moved between projects.

• COVID-19 specific content: Organisations mainly seek training on COVID19 specific topics, as well
as Safety & Security, Management & Leadership, and Needs Assessment. Non-COVID-19 topics
are requested with a COVID19 perspective (e.g. project management during COVID -19).
• Shared priorities across language groups: The prioritisation of topics is similar across language
groups, meaning that the same courses and resources could be developed and then translated, and
still hold relevance.
Exchange of learning and best practices between contexts would also seem to hold value.
• Organisation specific needs: All organisations state COVID-19 topics as the top priority, however
priorities beyond this shift significantly based on type of organisation. Faith-based organisations
identify Coordination and Protection as highly prioritised topics while for INGOs Proposal and Report
Writing is important, and for NGOs Training of Trainers was more significant.

1. True
2. False. Strategic training and development
3. False. Six stages
4. True
5. True

The Association of Public Health Laboratories (APHL) COVID-19 Training Needs Assessment was conducted
between July-August 2020 to identify essential public health laboratory (PHL) training needs based on experiences
from the COVID-19 pandemic. Out of the 99 laboratories contacted to participate (all state, local and territorial
PHLs that conduct COVID-19 testing), 77 completed the survey (78% response rate). Information from this survey
will be used by APHL and the US Centers for Disease Control and Prevention (CDC) Division of Laboratory
Systems to develop training resources.
Case Study Answer:

1. a) The employees prefer doing the tasks in their own ways
b) The company also had problems with the training process because the workers always failed to meet the job
specification
c) Also, they have overlapped training period and some of the training are outdated
2. The job description should be aligned to ensure that training needs are met for all employees. By
specifically developing and focusing training on the job description, employees are improved on the
aspects that are part and parcel of daily job routine.

3. a) Align the training with strategic goals

b) More direct first-hand info from employees
c) regular meetings, normal retreat, critical incident diary, work log
d) Involve the employees into decision-making process
e) Pay for performance
f) Intrinsic and extrinsic rewards
Video Activity 6.2:

• When there is a record of poor performance
• Learning of a new basic or specific skill
• Introducing new employees
• Implementation of new technology
Think Point 6.2:

Being able to conduct and perform this exercise would have proven to be significantly challenging as a result
of many HR professionals working from home. Important cues and information obtained from observing
employees, studying their mannerisms and behaviours have all been lost to a certain degree as a result of
remote working. Judging employees from online sessions on Skype, Zoom or MS teams does not place an HR
professional in the ideal situation to make a careful and measured assessment of what is required.

1. True
2. True
3. False. Organisational analysis
4. True
5. False. Self-efficacy
Think Point 6.3:

The creation of a learning environment allowing for the exchange and transfer of important skills and
knowledge.

1. True
2. False. The instructor-led classroom
3. True
4. False. Continuous process
5. True

Activity 6.2:
Training evaluation can provide useful information including the programme’s strengths and weaknesses,
identifying which learners benefited the most and least from participating, determining the programme’s financial
benefits and costs and allowing the comparison of the benefits and costs of different programmes. Examining the
outcomes of a programme helps in evaluating its effectiveness. These outcomes should be related to the
programme objectives which help trainees understand the purpose of the programme (Noe et.al, 2019).
Training evaluation forms the last link in the loop of the systems approach to training and development, since
it determines whether the training need (the difference between the required performance and the actual
performance of the trainee) was satisfied. Without measuring what happened, the training department and its
efforts cannot be effectively assessed. It also forms the starting point for the next round of training and
development if needed.

Unit
7: Compensation Systems

7.2 Overview of Compensation • Provides an overview of what compensation is all about
7.3 Emerging Pay Systems • Describes the emerging pay systems in existence
7.4 Employee Benefits • Explains what employee benefits are
7.5 Benefit Planning and Flexible Benefit Plans • Explores benefit planning and flexible benefit plans


7.1 Introduction
In the modern organisation, with a variety of costly employee benefit programmes, wage incentive programmes
and structured pay scales, the compensation task is even more difficult and challenging for an HR specialist.
Employees’ compensation affects their productivity and tendency to stay with the organisation. Employees’ need
for income and their desire to be fairly treated by the organisation make developing the compensation programme
very important for the HR department (Wärnich et.al., 2018).
7.2 Overview of Compensation

From the employers’ point of view, pay is a powerful tool for furthering the organisation’s strategic goals. Firstly,
pay has a large impact on employee attitudes and behaviours. It influences the kind of employees who are attracted
to and remain with the organisation, and it can be a powerful tool for aligning current employees’ interests with
those of the broader organisation. Secondly, employee compensation is typically a significant organisational cost
and thus requires scrutiny.
Companies often look for ways to reduce labour costs without jeopardising their relationships with their workforces.
From the employees’ point of view, policies having to do with wages, salaries and other earnings, affect their overall
income and thus their standard of living. Both the level of pay and its seeming fairness compared with others’ pay
are important (Noe et.al. 2019).
Video Activity 7.1

Watch the video that provides a holistic insight into compensation and
rewards: What is Total Rewards?
https://www.youtube.com/watch?v=la22XP0TAqE
Elaborate on the purpose of total rewards and identify the components
associated with this practice?
7.2.1 Objectives of a compensation system

Every company must be aware that the design of its rewards system rests largely on the objectives of its
compensation management so there must be a clear link between compensation and performance. Both employer
and employee must be satisfied in the employment relationship. According to Nel and Werner (2018), the basis of
employee pay satisfaction can be grouped into four categories:
• External equity – how the pay relates to other companies in the industry
• Internal equity – how fair the pay is compared to the size and profitability of the company
• Individual equity – measures the fairness of the pay based on the performance of individuals working
the same job
• Procedural equity – measures the fairness of the decision-making process of pay distribution

Activity 7.1
Read the article: 6 Different types of compensation plans and benefits.
Source: Mistry, P. 2017. 6 Different Types of Compensation Plans &

Benefits. [Online]. The HR Digest. Available: https://www.thehrdigest.com/6-
different-types-compensation-plans-benefits/
[09 July 2021]
Explain what you would consider the best compensation plan and why?
7.2.2 The design of a compensation system

The modern view is that employees who work in a rewarding environment often tend to produce high degrees of
performance output. The reward environment is the starting point for adding value to the organisation (Nel and
Werner, 2018).
1. Value-added compensation
Value-added compensation is a compensation system in which components of the compensation package
(benefits, base pay, incentives and so on), both separately and in combination, create value for the organisation
and its employees.
2. Total Compensation
Total compensation includes monetary and non-monetary rewards as well as direct and indirect rewards. This
means that there are three components of total compensation; direct pay, performance-based pay and indirect
pay. The elements of total compensation are depicted in the Table below:
6Table 7.1: The elements of total compensation
Direct compensation Other direct compensation
• Cash compensation • Share options
• Basic salary • Share ownership
• Deferred cash • Restricted shares

Employee Benefits Perquisites/fringe benefits
• Retirement benefits • Cars
• Death benefits • Holidays
• Disability benefits • Loans
• Medical benefits • Other
• Other Incentives
• Bonuses
• Profit sharing
• Recognition
Nel and Werner (2018)
3. Variable Pay
Variable pay plans are compensation systems that pay cash bonuses to a defined group of employees based on
predetermined measures of group or organisational performance. Variable pay is attractive because it does not
compound from year to year and the unspent funds can be reused each year or can be returned to the budget
cycle. There are four basic variable pay approaches based on the type of formula used:
• Profit sharing
• Gain sharing
• Goal sharing
• Combination plans
4. Purpose and importance of total compensation

• To attract potential job applicants
• To motivate employees
• To retain good employees
• To administer pay within legal constraints

5. A model for designing and implementing a new compensation system
Analyse present compensation structure

↓
Formulate salary policies
↓
Select compensation system
↓
Develop implementation plan
↓
Evaluate and monitor
10Figure 7.1; A model for a new compensation system (Nel and Werner, 2018)
Think Point 7.1

Globally, HR departments have been battling with the consequences of
Covid-19 as it has impacted on their organisations ability to compensate
existing staff their current levels of remuneration.
Discuss the role played by the Department of Labour in South Africa during
this period?
Case Study 7.1

Read the excerpt: How compensation affects employee performance
Source: Dirks, E. 2020. How Compensation Affects Employee Performance.
[Online]. HRSoft. Available:
https://hrsoft.com/blog/how-compensation-affects-employee/
[10 July 2021]
Compensation is the reward given to employees in return for their services rendered and it is often the
cornerstone of a productive workforce. The quality and performance of your company’s talent pool is usually
directly dependent on how well you execute your compensation planning strategies.
The impact of compensation on employee performance

A compensation package does not necessarily mean rewarding in the monetary form. It also includes flexible
benefits, medical care, work-life balance, as well as employee perks. Today’s employees not only work for the

money, but also place equal emphasis on other aspects of compensation. A good compensation package
ensures:
• Retention: a compelling compensation plan helps to reduce the turnover rate of the company.
Employees will be more incentivised to stay in their role and this saves potential expenses related
to turnover
• Motivation: compensation is the primary motivating factor for employees to continuously push
themselves to strive for greater heights. It offers them a reason to work hard and keep driving
towards achieving the next milestone
On the other hand, employee performance and efficiency can be drastically affected if a good compensation
package is absent. Here are a few reasons why:
• Low job satisfaction: employees will feel underappreciated and derive low satisfaction from their
job. This may lead to discontent amongst co-workers and put a dent in workplace morale
• Low productivity: poor compensation induces low productivity. There is less motivation for
employees to strive for excellence
• High turnover: if the reward versus effort ratio is low, employees are incentivised to cast their sights
away from their current job. Employee churn incurs a hefty cost to the company (retraining,
relocating and time wasted)
Systemise your compensation planning process today

A well-crafted compensation plan is imperative to the success of the company. But many of today’s
compensation processes rely on Excel spreadsheets that offer no room for optimisation and streamlining.
Using specialised compensation software to plan compensation allows compensation managers to use hard
data to identify compensation strategies that provide the greatest return on investment.
Questions:
1. Differentiate between the concepts retention and motivation?
2. Critically discuss the reasons why employee performance and efficiency can be drastically affected
if a good compensation package is absent?
Activity 7.2
Imagine that you have been tasked by your HR manager to create a pay slip
for all operational level employees within your organisation. Outline the
aspects that you would include in such a pay slip to ensure that it conforms to
both legal and business practice?


1. A salary is usually paid to an employee on a daily or weekly basis?
2. Employees’ need for income and their desire to be fairly treated by the
organisation make developing the compensation programme very
important for the HR department?
3. Every company must be aware that the design of its rewards system
rests largely on the objectives of its compensation management so
there must be a clear link between compensation and performance?
4. Value-added compensation includes monetary and non-monetary
rewards as well as direct and indirect rewards?
5. Variable pay plans are compensation systems that pay cash bonuses to
a defined group of employees based on predetermined measures of
group or organisational performance?
7.3 Emerging Pay Systems

• Pay for Knowledge and skills
• Pay for competencies
• Performance-based pay
• Incentive pay systems (Nel and Werner 2018)
7.4 Employee Benefits

Mandatory benefits - benefits that must be provided by law in South Africa:
• Unemployment insurance
• Compensation for injuries and diseases
Voluntary benefits – employees can rely on several benefits which are non-mandatory or voluntary benefits on the
part of the employer. It should be noted that several the benefits discussed do have certain legislated minimums
such as the number of days’ vacation leave, the number of paid public holidays, the number of days’ sick leave,
and maternity leave benefits. In South Africa these minimums are legislated in the Basic Conditions of Employment
Act (No.75 of 1997):
• Vacation leave
• Paid public holidays
• Time for personal matters
• Sick leave
• Maternity leave
• Health and life insurance

• Medical aid schemes

• Pension funds
• Employee services
(Nel and Werner 2018)
Think Point 7.2

Employee benefits need to be carefully managed: often, not enough attention
is paid to employees’ attitude towards any benefits they receive or feel
entitled to. Employees might feel that their value to the organisation is being
overlooked or lost in an inflexible benefit structure, not to mention the role
that benefits play in status. The patterns and balance of benefit entitlements
need to be carefully evaluated and properly managed, and this includes
regular assessment involving employees.
How would you assess the benefit of education bursaries for employees and
their dependants, as a drawcard to the organisation?

1. Profit sharing and gain sharing are two of the four examples of variable
pay that can be adopted by an organisation?
2. A 13th cheque is an example of a mandatory benefit as prescribed by
law in South Africa?
3. Every single fixed-term or permanent employee in South Africa is
entitled to a minimum of 15 days annual leave according to the law?
4. Employees who are either fired or retrenched can claim from their
unemployment insurance fund?
5. The Department of Social Development has been responsible for the
administration of UIF benefits to employees in South Africa since the
lockdown restrictions have come into effect as per the Disaster
Management Act 57 of 2002?


Galanaki, E., 2019. Effects of employee benefits on affective and
continuance commitment during times of crisis. International Journal of
Manpower.
https://www.emerald.com/insight/content/doi/10.1108/IJM-08-2018-
0270/full/pdf?title=effects-of-employee-benefits-on-affective-and-continuance-
commitment-during-times-of-crisis
Provide a brief description of the findings of this article?
7.5 Benefit Planning and Flexible Benefit Plans

Today, although the tendency in bureaucratic –style organisations is still to dictate the terms of benefit packages,
employers are starting to realise that the new deal in employer-employee relationship demands much more
flexibility (Nel and Werner 2018). According to (Nel and Werner 2018) the terms ‘flexible benefits plan’ and
‘Cafeteria benefits plan’ are generally used synonymously. The idea of cafeteria benefits allows the employee to
put together their own benefits package, subject to two constraints:
• The employers must limit the total cost for each total benefits package
• Each benefit plan must include certain non-optional items, such as the mandatory benefits
The philosophy behind flexible benefit plans is that no one knows the employees’ needs better than the employees
themselves and their needs change through the years, so they can alter their benefits. (Nel and Werner 2018).
Think Point 7.3

Can you envisage more organisations in the future moving beyond the
traditional monetary component (salary or wage) of a compensation package
when attempting to retain existing talented employees and to lure externally
talented individuals to the organisation?

1. Salary cuts have been a likely consequence for many employees in
South Africa due to Covid-19?
2. An autocratic organisation is a form of management that has a
pyramidal command structure?

3. The terms ‘flexible benefits plan’ and ‘cafeteria benefits plan’ are
generally used synonymously?
4. The philosophy behind flexible benefit plans is that no one knows the
employees’ needs better than the employees themselves and their
needs change through the years, so they can alter their benefits?
5. The current minister for employment and labour in South Africa is Tito
Mboweni?

Will 2021 be the year of alternative benefits and compensation?
by Lisa Ardill 15 December 2020
Source: Ardill, L. 2020. Will 2021 be the year of alternative benefits and
compensation? [Online]. Available:
https://www.siliconrepublic.com/advice/alternative-benefits-compensation-
allison-baum-gates
[10 July 2021]
According to Allison Baum Gates of SemperVirens Venture Capital, Covid-19

and remote working have been a catalyst for alternative benefits. A shift in
employee compensation has been a long time coming, according to
SemperVirens’ Allison Baum Gates, and changes to working life caused by
Covid-19 have accelerated this.
Baum Gates is currently a general partner at the California-based venture

capital firm, focusing on the area of work. From roles at Goldman Sachs and
General Assembly to co-founding Fresco Capital and guest lecturing in
Columbia Business School, she’s had a front-row seat to business trends for
many years.
She’s confident that, in 2021, we will continue to see a change in how we

reward our people. “The chaos of 2020 has catalysed creativity in
compensation strategies as employers and employees alike are rethinking
optimal pay structures.” There are three key shifts she sees taking place.
Firstly, we could see more transparency and pressure around pay equity –
particularly for women and other underrepresented groups.

Full-time compensation may continue to be replaced by “variable, project-

based contracting models”, but ultimately remote working will be the real game
changer. “Remote work has redefined total compensation, as benefits such as
in-office perks and commuting stipends are being reallocated to internet
subsidies, childcare and four-day work weeks,” she explained.
Do alternative benefits really work?

In response to this question, Baum Gates went back to what it means to
compensate staff. “At the end of the day, compensation is a tool for
incentivising employees to create the maximum amount of value for the
business.” In terms of the alternative benefits some companies rolled out in the
wake of Covid-19, she said the jury is still out on how business outcomes will
be affected.
However, she added that this is a “unique and exciting time for both employers
and employees alike to let go of the way things were done and rebuild a new
incentive system for a generation of workers with different motivations”. “The
future of work has blurred the boundaries between our jobs and our personal
lives, forcing individuals to reconcile their professional and social identities,”
she said. “Introducing more flexibility and creativity into compensation
structures allows people to build careers that work for them, instead of being
forced to fit into one mould.”
Covid as a catalyst
So, how exactly has Covid influenced employers’ decisions around rewards?
The pandemic has shuffled priorities, according to Baum Gates. “It is often said
that necessity is the mother of invention, and Covid’s impact on compensation
is no exception. “Challenging economic times have forced employers to
downsize and emphasise efficiency over scale.
Agility has taken priority overgrowth, moving the market further toward flexible
and project-based pay models.” The global pivot to remote working has also
made a lasting impact. She sees more people leaving crowded, expensive
cities to relocate, and this could force businesses to rethink how they support
their employees. “There is an active, ongoing debate over how much location
and cost of living should be considered as variables in overall pay calculations.”

Paving the way for new types of pay models

So, where to begin? “We are in the midst of a massive platform shift in how we
work, which is happening in three waves: workflow, culture and compensation,”
Baum Gates said. “Workflow is changing daily, but culture takes more time to
adjust. Long-term changes in behaviour require changes in incentives, which
is why a corresponding shift in pay is essential. Otherwise, your workforce will
always revert to the way things used to be done, which is a liability in a world
of accelerating change.”
But aside from the case for productivity and innovation, she added that
choosing to evolve now is an opportunity to build trust with your staff.
“Employees are watching carefully how companies and leaders behave in
difficult times, so this is a rare opportunity to demonstrate your priorities, your
values and your culture in a way that will help attract top talent for years to
come. “Getting started is hard, but imperfect evolution is better than perfect
regression. Avoid the temptation of optimising for short-term economics
instead of long-term productivity and retention. Reach out to your community
and start talking about what is working and not working for others. “Everyone
is in the same boat, so the more you are able to share best and worst practices,
the faster the entire industry will evolve.”
Question:
Evaluate whether alternative benefits impact positively on employee
performance?
Video Activity 7.2

Watch the video: Impact of Covid-19 in Africa: A scenario analysis to 2030
https://www.youtube.com/watch?v=n0zgWm7kqL4
Discuss the possible consequences that are likely to result in most African
countries

7.6 Summary
Compensation is the total cash and non-cash payments that you give to an employee in exchange for the work
they do for your business. It is typically one of the biggest expenses for businesses with employees. Compensation
is more than an employee’s regular paid wages. It also includes many other types of wages and benefits. In the
era of globalisation, where the business environment has become increasingly complex and challenging,
structuring an effective compensation package to attract and retain talent is an important function of organisational
effectiveness.
Good compensation plans well administered have a salutary effect on the entire enterprise. Employees are happier
in their work, co-operation and loyalty are higher, amount of output is up, and quality is better. In the absence of
such plana, compensation is determined subjectively based on haphazard and arbitrary decisions. This creates
several iniquities which are among the most dangerous sources of friction and low morale in an enterprise.
The nature and scale of fringe benefits vary widely from organisation to organisation. To the employer, they are a
part of labour cost. In many organisations, they constitute a substantial portion of labour cost, surpassing even the
wage bill. Many of these fringe benefits are made available to employees voluntarily by the employers; many have
been the outcome of collective agreements and many others have been statutorily imposed. Many employers,
owning large-scale industrial establishments and those having their establishments in remote and isolated areas,
provide housing accommodation to their employees and have also established well-equipped hospitals and
dispensaries.
Revision Questions
1 Consider the compensation and benefits practices of the company for
which you are currently employed at. To what extent do the
compensation and benefits practices facilitate the attraction and
retention of talent?
2 At the organisation in which you are employed, what component of the
total compensation system is perceived to be most valuable to
employees? Why do you think so?
3 To what extent are flexible benefit plans implemented within South
African companies or the country you currently reside in.
4 Discuss the benefits and potential limitations of flexible benefit plans?

Video Activity 7.1:
Total rewards encompass six components — compensation, benefits, work-life effectiveness, recognition,
performance management and talent development — that collectively define an organisation's strategy to
attract, motivate, retain and engage employees.
Activity 7.1:
Depending on the nature, size, and financial capabilities of the organisation, the best type of compensation
plan will differ but generally employees who receive a form of basic compensation such as a fixed monthly
salary that are then further incentivised by commission earnings have motivation to work harder as generating
revenue or enhancing levels of productivity results in them gaining financially.
Think Point 7.1:

As part of its response to the Covid-19 pandemic, the Department of Labour has issued a directive for relief to be
provided to contributors who have lost income or required to take annual leave as a result of the Coronavirus
breakout. To date, the UIF has received just over 55 268 applications from employers representing about 1 601
767 employees. In total, the UIF has over 1 800 000 employers registered on its database representing more than
8-million workers.
Of the received applications, the UIF has processed 37 673 employer applications which means that 606 462
employees will receive their benefit. About 9 938 applications couldn’t be processed due to errors and the
affected companies have been notified to correct their applications and resubmit. Some of the errors identified
relate to incorrect banking details, making it impossible for payments to be processed. As of today, the cumulative
amount paid from April 16 to date is R1.1-billion.
Case Study 7.1:

1 Retention is defined as the process by which a company ensures that its employees don't quit their jobs. Every
company and industry has a varying retention rate, which indicates the percentage of employees who remained
with the organisation during a fixed period while Motivation is the internal and external factors that stimulate
desire and energy in people to be continually interested and committed to a job, role or subject, or to make an
effort to attain a goal.
2 a) Low job satisfaction: employees will feel underappreciated and derive low satisfaction from their job. This
may lead to discontent amongst co-workers and put a dent in workplace morale.
b) Low productivity: poor compensation induces low productivity. There is less motivation for employees to
strive for excellence

c) High turnover: if the reward versus effort ratio is low, employees are incentivised to cast their sights away
from their current job. Employee churn incurs a hefty cost to the company (retraining, relocating and time
wasted).
Activity 7.2:
• Name, surname, and address of the employee
• Date of engagement
• Nature of employment contract (fixed-term or permanent)
• Compensation period (eg. 26 May 2021 to 25 June 2021
• Gross salary
• Deductions (UIF, tax, medical aid, pension fund)
• Benefits (UIF, allowances, medical aid, pension fund)
• Taxable amount
• Additional claims (overtime and commission)
• Net salary

1. False. Wage
2. True
3. True
4. False. Total compensation
5. True
Think Point 7.2:

This would definitely improve the retention rate of an organisation as well as the ability to attract a better quality
of candidate as it indicates the organisation’s willingness to assist with the continuous development of not just
the employee but also family immediate family members which can result in longer term commitment to an
organisation.

A new taxonomy of employee benefits based on employees’ subjective utility evaluations is developed and applied.
Availability of benefits and changes in the allocation policies of benefits are found to significantly but not powerfully
influence organisational commitment. The setting in which this exchange is realised is critical for the relationships
developed.


1. True
2. False. Voluntary benefit
3. True
4. True
5. False. Department of Labour
Think Point 7.3:

Yes. It is arguably the way forward in the future as individuals have different aspects they would consider to be
reward for performance like additional leave, working less hours, greater flexibility, remote working,
compressed work weeks etc.

1. True
2. False. Bureaucratic
3. True
4. True
5. False. Thulas Nxesi

Yes. Many employees are driven beyond monetary gain and alternative benefits can provide added incentive to
improve on existing productivity levels or reduce negative components such as high absenteeism and high labour
turnover. Individuals are also looking for more social recognition within their work based environments that focuses
on more than financial gain.
Video Activity 7.2:

• Retrenchment: many people will lose their jobs as organisations try to make expenditure cuts
• Rise in unemployment: possible consequence of retrenchment
• Poverty levels increasing with people out of work, there is no money to afford basic living expenses
• Crime: consequence of poverty
• Substance and alcohol abuse: many people turn to these vices to fill the void left by losing their jobs and
loved ones.

Unit
8: Performance Management
and Appraisal

8.1 Introduction to Performance Management • Introduces topic of performance management
8.2 Overview of Performance Management • Provides an overview of what performance management

is all about
8.3 The Process of Performance Management • Describes the process of performance management


8.1 Introduction to Performance Management

According to Noe et al. (2019), performance management consists of three major parts to its process, which
includes:
• Defining performance – specifies which aspects of performance are relevant to the organisation
• Measuring performance – measures those aspects of performance through performance appraisal,
which is only one method for managing employee performance
• Performance feedback - provides feedback to employees through performance feedback sessions so
they can adjust their performance to the organisation’s goals
Performance appraisal may be viewed as only one part of the broader process of performance management.
Performance management then is the process through which managers ensure employees’ activities and outputs
are congruent with the organisation’s goals and is central to gaining a competitive advantage.
8.2 Overview of Performance Management

Performance management may be defined as a process of creating a work environment or setting in which people
are enabled to perform to the best of their abilities for the achievement of shared goals. (Nel and Werner, 2018).
8.2.1 Purposes of Performance Management

• It is a process for strategy implementation
• Provides input to other HR systems such as development and remuneration
• It is a vehicle for culture change (Nel and Werner, 2018)
• Serves as an administrative purpose (Noe et.al., 2019)
Video Activity 8.1

Watch the video Why is performance management so important?
https://www.youtube.com/watch?v=RhAJkhIFFno
Discuss the significance of performance management?
Activity 8.1
Critically evaluate the respective steps in the performance management
process and suggest which one of the six steps is most important to ensure
an accurate but fair outcome of an employee’s performance level?

8.3 The Process of Performance Management

Step 1: Understanding and identifying important performance outcomes or results
Divisions, departments, teams and employees must align their goals and behaviours and choose to engage in
activities that help achieve the organisation’s strategy and goals.
Step 2: Understanding the process (or how) to achieve the goals established in the first step
This includes identifying measurable goals, behaviours and activities that will help the employee achieve the
performance results.
Step 3: Organisational support

Involves providing employees with training, necessary resources and tools, and frequent feedback communication
between the employee and manager focusing on accomplishments as well as issues and challenges influencing
performance. For effective performance management, managers and employees must value feedback and
regularly exchange it.
Step 4: Performance evaluation

This is when the manager and employee discuss and compare the targeted performance goal and supporting
behaviours with the actual results. This typically involves the annual or biannual formal performance review. One
way to make the formal evaluation more effective is for managers to engage in frequent performance conversations
with employees rather than wait for the formal annual review.
Step 5: Identifying what the employee can do

Involves the employee and manager identifying what the employee (with the help from the manager) can do to
capitalise on performance strengths and address weaknesses.
Step 6: Providing consequences for achieving (or failing to achieve) performance outcomes
This includes identifying training needs, adjusting the type or frequency of feedback the manager provides to the
employee, clarifying, adjusting, or modifying performance outcomes, and discussions of behaviours or activities
that need improvement or relate to new priorities based on changes or new areas of emphasis in organisational or
department goals. (Noe et. al, 2019).

Think Point 8.1

High-performing employees are usually highly self-motivated people. They are
self-driven, perseverant, focused and disciplined in their work. They set their
own targets to meet the performance expectations set for them, and constantly
exceed expectations. They generally do not need any external motivation or
praise to perform well.
Do you think this description fits all high-performing individuals? Are there other
paths to good performance that do not involve high levels of motivation? If so,
what are they?

1. Defining performance measures those aspects of performance through
performance appraisal, which is only 1 method for managing employee
performance?
2. Performance management is the process through which managers
ensure employees’ activities and outputs are congruent with the
organisation’s goals and is central to gaining a competitive advantage?
3. Performance feedback provides feedback to employees through
performance feedback sessions so they can adjust their performance to
the organisation’s goals?
4. Step four of the performance management process deals with
organisational support?
5. Step five of the performance management process involves the
employee and manager identifying what the employee can do to
capitalise on performance strengths and address weaknesses?
8.3.1 Approaches to Performance Management

There are different ways to evaluate performance. According to Noe et al. (2019), these include:
1. The Comparative Approach
The comparative approach requires the rater to compare an individual’s performance with that of others. Three
common techniques fall under the comparative approach:
• Ranking: simple ranking requires managers to rank employees within their departments from highest
performer to poorest performer (or best to worst). Alternation ranking consists of a manager looking at a
list of employees, deciding who is the best employee and crossing that person’s name off the list

• Forced distribution: also uses a ranking format but employees are ranked in groups. This technique
requires the manager to put certain percentages of employees into predetermined categories.
Employees are commonly grouped into three, four or five categories usually of unequal size indicating
the best workers, the worst workers and one or more categories in between
• Paired comparison: this method requires managers to compare every employee with every other
employee in the work group, giving an employee a score of 1 every time he or she is considered the
higher performer. Once all the pairs have been compared, the manager computes the number of times
each employee received the favourable decision (i.e. counts the points) and this becomes the
employee’s performance score
Activity 8.2
Analyse the comparative approach by highlighting the common techniques
that fall under this approach?
2. The Attribute Approach

The attribute approach to performance management focuses on the extent to which individuals have certain
attributes (characteristics or traits) believed desirable for the company’s success. There are two forms of the
attribute approach:
• Graphic rating scale: is the most common form that the attribute approach to performance management
takes. A list of traits is evaluated by a five-point (or some other number of points) rating scale. The
manager considers one employee at a time, circling the number that signifies how much of that trait the
individual has
• Mixed-standard scales: to create a mixed-standard scale we define the relevant performance
dimensions and then develop statements representing good, average, and poor performance along
each dimension. These statements are then mixed with the statements from other dimensions on the
actual rating instrument

The Evolution of the Forced Distribution System at GE
General Electric is one of the most frequently cited companies to have utilised
a comparative rating system with a forced distribution. GE, based in Fairfield,
Connecticut, provides a wide array of products and services globally to
customers in the areas of financial services, media entertainment, health care
and energy technologies and products such as appliances and plastics.

In recent years, the rigid system of requiring managers to place employees into
three groups (top 20%, middle 70% and bottom 10%) has been revised to allow
managers more flexibility.
While the normal distribution curve is still referenced as a guideline, the

reference to the 20/70/10 split has been removed and work groups are now
able to have more “A player” or “no bottom 10’s”. The company did not view
the forced distribution system of the past as a match for fostering a more
innovative culture in which taking risks and failure are part of the business
climate. As a result, the company has begun evaluating employees relative to
certain traits, including one’s ability to act in an innovative manner or have an
external business focus.
(Source: Aguinis, 2014)
Question: Provide a brief summary of GE’s performance management

system?
Think Point 8.2

Bearing in mind the previously mentioned challenges facing HR due to Covid-
19 and its subsequent lockdown restrictions.
Elaborate on the approach to performance management that would be cost

effective in the current climate of working?
3. The Behavioural Approach

The behavioural approach to performance management attempts to define the behaviours an employee must
exhibit to be effective in the job. There are three techniques that rely on the behavioural approach that define those
behaviours and then require managers to assess the extent to which employees exhibit them. Examples of these
three techniques can be seen below as per Noe et al. (2019):
• Behaviourally Anchored Rating Scales (BARS): is designed to define performance dimensions by

developing behavioural anchors associated with different levels of performance. To develop BARS, we
first gather many critical incidents that represent effective and ineffective performance on the job. These
incidents are classified into performance dimensions, and the ones that experts agree clearly represent
a level of performance, are used as behavioural examples to guide the rater. The manager’s task is to
consider an employee’s performance along each dimension and determine where on the dimension the

employee’s performance fits using the behavioural anchors as guides. This rating becomes the
employee’s score for that dimension
• Behavioural Observation Scales (BOS): is a variation of BARS and differs in two basic ways. Firstly, rather
than discarding many the behaviours that exemplify effective or ineffective performance, a BOS uses
many of them to more specifically define all the behaviours that are necessary for effective performance.
Secondly, difference is that rather than assessing which behaviour best reflects an individual’s
performance, a BOS requires managers to rate the frequency with which the employee has exhibited
each behaviour during the rating period. These ratings are then averaged to compute an overall
performance rating
• Competency Models: competencies are sets of skills, knowledge, abilities and personal characteristics
that enable employees to successfully perform their jobs. Competency model identifies and provides
descriptions of competencies that are common for an entire occupation, organisation, job family or a
specific job
4. The Results Approach

The results approach focuses on managing the objective, measurable results of a job or work group. This
approach assumes that subjectivity can be eliminated from the measurement process and that results are the
closest indicator of one’s contribution to organisational effectiveness. Two performance management systems
use results:
• Balance Scorecard: the balance scorecard uses four perspectives of performance including; financial,
customer, internal or operations and learning and growth. The financial perspective focuses on creating
sustainable growth in shareholder value, the customer perspective defines value for customers (e.g.,
service, quality), the internal or operation perspective focuses on processes that influence customer
satisfaction, and the learning and growth perspective focuses on the company’s capacity to innovate and
continuously improve. Each of these perspectives are used to translate the business strategy into
organisational, management and employee objectives.
Employee performance is linked with the business strategy through communicating and educating
employees on the elements of the balanced scorecard, translating strategic objectives into measures for
departments and employees and linking rewards to performance measures. Employees need to know
the corporate objectives, how they translate into objectives for each business unit, and develop their own
and team objectives that are consistent with the business unit and company objectives.
Productivity Measurement and Evaluation System (ProMES): the main goal of ProMES is to motivate
employees to improve team or company-level productivity. It is a means of measuring and feeding back
productivity information to employees. ProMES consists of four steps:
a) First, people in an organisation identify the products or the set of activities or objectives the organisation
expects to accomplish.

b) Second, the staff defines indicators of the products. Indicators are measures of how well the products are
being generated by the organisation.
c) Third, the staff establishes the contingencies between the amount of the indicators and the level of
evaluation associated with that amount.
d) Fourth, a feedback system is developed that provides employees and work groups with information about
their specific level of performance on each of the indicators.
An overall productivity score can be computed by summing the effectiveness scores across the various indicators.
Think Point 8.3

Every student wants to succeed, and the more academic success an individual
achieves, the greater the impact on their self-esteem, motivation, and
perseverance in higher education. Poor academic performance or failing, on
the other hand, often results in dropping out. This eventually leads to
unacceptable levels of attrition, reduced graduate throughput and increases
the cost of education throughout the system. Finally, this limits admission
opportunities for graduates seeking higher degrees and generally downgrades
the country’s education standards and advanced economic activity.
Discuss the methods that would enable students to perform better within the
higher education sphere which will also serve as a foundation for acceptable
performance standards in the workplace?
5. The Quality Approach

Improving customer satisfaction is the primary goal of the quality approach. Fundamental characteristics of the
quality approach include a customer orientation, a prevention approach to errors and continuous improvement.
Customers can be internal or external to the organisation. A performance management system designed with a
strong quality orientation can be expected to:
• Emphasise an assessment of both person and system factors in the measurement system
• Emphasise that managers and employees work together to solve performance problems Involve
both internal and external customers in setting standards and measuring performance Use multiple
sources to evaluate person and system factors, Noe et al. (2019)


1. Simple ranking requires managers to rank employees within their
departments from highest performer to poorest performer or best to
worst?
2. Forced distribution requires managers to compare every employee with
every other employee in the work group, giving an employee a score of
1 every time they are considered the higher performer?
3. The comparative approach requires the rater to compare an individual’s
performance with that of others?
4. The attribute approach consists of a manager looking at a list of
employees, deciding who is the best employee and crossing that
person’s name off the list?
5. The attribute approach to performance management focuses on the
extent to which individuals have certain attributes (characteristics or
traits) believed desirable for the company’s success?
8.3.2 The 360-degree Feedback system

According to Noe et.al., (2019), a recent trend in performance appraisals for management development is the use
of upward feedback and 360-degree feedback. Upward feedback refers to appraisal that involves collecting
subordinates’ evaluations of managers’ behaviours or skills. The 360-degree feedback process is a special case
of upward feedback. In 360-degree feedback systems, employees’ behaviours or skills are evaluated not only by
subordinates but by peers, customers, their bosses and themselves.
The raters complete a questionnaire asking them to rate the person on several different dimensions. The results
of a 360-degree feedback system show how the manager was rated on each item. The results also show how self-
evaluations differ from evaluations from the other raters. Typically, managers review their results, seek clarification
from the raters, and set specific development goals based on the strengths and weaknesses identified.


360o feedback- getting better at it
The below examples are tips for both the rater and employee that should be
considered when implementing any form or type of 3600 feedback:
• Whatever the language used, keep it as simple and straightforward
as possible when designing the performance evaluation questions
• Keep questions short and to the point by grouping related questions
in a few logical categories
• Explain clearly to employees what a ‘good’ and a ‘bad’ rating might
involve
• Help employees to interpret the results and to respond to them
• The evaluators or raters should know what is expected of them, and
how to complete the evaluation
• Explain to the evaluators exactly what each scale or score means
and define it clearly
• Afterwards, provide regular ‘real time’ feedback to employees on
their performance
• Approach the process as an opportunity to develop the skills of each
of the parties involved in the evaluation process, with clear and
comprehensive training
Question:
Provide a brief description pertaining to 360-degree feedback?

Case Study 8.1

Capitol One, a consumer credit company, has developed an effective 360-
degree feedback system. Capitol One has included several features in its 360-
degree feedback system to minimise the chance that the ratings will be used as
ways to get back at an employee or turned into a popularity contest. The 360-
degree assessments are based on the company’s competency model, so raters
are asked for specific feedback on a competency area.
Rather than a lengthy form that places a large burden on raters to assess many
different competencies, Capitol One’s assessment asks the raters to
concentrate on three or four strengths, or development opportunities. It also
seeks comments rather than limiting raters to merely circling numbers
corresponding to how much of each competency the employee has
demonstrated. These comments often provide specific information about what
aspect of a competency needs to be improved.
This comment system helps tailor development activities to fit competency

development. To increase the chances that the assessment will result in change,
the feedback from the 360-degree assessment is linked to development plans,
and the company offers coaching and training to help employees strengthen
their competencies. Employees are encouraged to share feedback with their co-
workers. This creates a work environment based in honest and open feedback
that helps employees personally grow.
(Noe et. al., 2019)
Questions
1. Do you think this development by Captitol One in lieu of a 360-degree
feedback will be successful in measuring employee performance?
2. What other methods do you envisage organisations implementing in the
future as a response to the new work regulations imposed by Covid-19?
3. Critically describe what you understand by the phrase: “upward
feedback”?
Video Activity 8.2

Watch the video on: Performance Appraisal Methods in HRM-Traditional &
Modern Methods

https://www.youtube.com/watch?v=2WyAqRbgxcU
Describe the methods that you would feel most comfortable with as an
employee?

1. The graphic rating scale creates a mixed-standard scale we define the
relevant performance dimensions and then develop statements
representing good, average, and poor performance along each
dimension?
2. The behavioural approach to performance management attempts to
define the behaviours an employee must exhibit to be effective in the job?
3. Behaviour models are sets of skills, knowledge, abilities and personal
characteristics that enable employees to successfully perform their jobs?
4. In 360-degree feedback systems, employees’ behaviours or skills are
evaluated not only by subordinates but by peers, customers, their bosses
and themselves?
5. The appraisal interview should be both evaluative and developmental?
8.3.3 Performance Feedback

If employees are not made aware of how their performance is not meeting expectations, their performance will
almost certainly not improve. Effective managers provide specific performance feedback to employees in a way
that elicits positive behavioural responses (Noe et.al.,2019). The appraisal interview should be both evaluative and
developmental. Goals that have been met do not warrant long discussion except for the praise that must
accompany these achievements (Nel and Werner, 2018).
According to Noe et.al. (2019), to provide effective performance feedback managers should consider the following
recommendations:
• Feedback should be given frequently, not once a year
• Create the right context for the discussion
• Ask the employee to rate his or her performance before the session
• Encourage the employee to participate in the session
• Recognise effective performance through praise
• Focus on solving problems
• Focus feedback on behaviour or results not on the person
• Minimise criticism
• Agree to specific goals and set a date to review progress

HR practitioners and senior managers are beginning to realise that the management of employee performance
must take place within the pursuit of strategic business goals. This is one of the major reasons why many
organisations are starting to favour a multi-rater, or 360-degree approach to performance evaluation (Nel and
Werner, 2018).
8.4 Summary
Performance management is not an easy field to navigate as it is constantly evolving. New performance manage-
ment trends emerge all too often and its easy for human resource departments get it wrong. Employees are left
feeling deflated, unmotivated and unengaged and managers are frustrated at the poor levels of team and individual
employee performance. Thankfully, more companies are waking up to the importance (and resulting benefits) of
effective performance management systems. The first step towards revitalising and improving an existing perfor-
mance processes is to understand what an effective performance management system is.
Revision Questions
1. Evaluate the attribute approach and outline the two forms to this
approach?
2. Differentiate between the Behaviourally Anchored Rating Scale (BARS)
and the Behavioural Observation Scales (BOS)?
3. Identify the performance management approach that is implemented in
your organisation. What are the strengths and weaknesses of the
performance management system in your organisation?
4. What are the recommendations that managers should consider when
providing effective performance feedback?
5. Clearly explain all the facets of the results approach in performance
management?

Video Activity 8.1:

It consists of regular feedback moments that allow managers to spot and address problems quickly as well as keep
everyone motivated and on track. By improving employee engagement and improving company productivity,
performance management helps boost a company's profitability while keeping everyone happy.
Activity 8.1
Step 1: Understanding and identifying important performance outcomes or results
Divisions, departments, teams and employees must align their goals and behaviours and choose to engage in
activities that help achieve the organisation’s strategy and goals.
Step 2: Understanding the process (or how) to achieve the goals established in the first step
This includes identifying measurable goals, behaviours and activities that will help the employee achieve the
performance results.
Step 3: Organisational support

Involves providing employees with training, necessary resources and tools, and frequent feedback communication
between the employee and manager focusing on accomplishments as well as issues and challenges influencing
performance. For effective performance management, managers and employees must value feedback and
regularly exchange it.
Step 4: Performance evaluation

This is when the manager and employee discuss and compare the targeted performance goal and supporting
behaviours with the actual results. This typically involves the annual or biannual formal performance review. One
way to make the formal evaluation more effective is for managers to engage in frequent performance conversations
with employees rather than wait for the formal annual review.
Step 5: Identifying what the employee can do (most important step)

Involves the employee and manager identifying what the employee (with the help from the manager) can do to
capitalise on performance strengths and address weaknesses.
Step 6: Providing consequences for achieving (or failing to achieve) performance outcomes
This includes identifying training needs, adjusting the type or frequency of feedback the manager provides to the
employee, clarifying, adjusting, or modifying performance outcomes, and discussions of behaviours or activities
that need improvement or relate to new priorities based on changes or new areas of emphasis in organisational or
department goals.

Think Point 8.1:

Not all. Yes. Some individuals are motivated to perform as they seek to be rewarded financially so that they can
achieve a better standard of living, look after their family or cover their outstanding debts.

1. False. Measuring performance
2. True
3. True
4. False. Performance evaluation
5. True
Activity 8.2:
The comparative approach requires the rater to compare an individual’s performance with that of others. Three
common techniques fall under the comparative approach:
• Ranking: simple ranking requires managers to rank employees within their departments from highest
performer to poorest performer (or best to worst). Alternation ranking consists of a manager looking at a
list of employees, deciding who is the best employee and crossing that person’s name off the list
• Forced distribution: also uses a ranking format but employees are ranked in groups. This technique
requires the manager to put certain percentages of employees into predetermined categories.
Employees are commonly grouped into three, four or five categories usually of unequal size indicating
the best workers, the worst workers and one or more categories in between
• Paired comparison: this method requires managers to compare every employee with every other
employee in the work group, giving an employee a score of 1 every time he or she is considered the
higher performer. Once all the pairs have been compared, the manager computes the number of times
each employee received the favourable decision (i.e. counts the points) and this becomes the
employee’s performance score

In summary, GE’s performance management system and revisions to the system provide an example of how
decisions about the measurement of performance need to consider the ramifications and resulting behaviours that
are encouraged or discouraged. The consideration of culture and overall business strategy is also crucial in
determining how to measure performance
Think Point 8.2:

The results approach as it focuses on managing the objective, measurable results of a job or work group. This
approach assumes that subjectivity can be eliminated from the measurement process and that results are the
closest indicator of one’s contribution to organisational effectiveness.

Think Point 8.3:

There is a gap between what students learn theoretically at tertiary level and what is required and expected from
them thereafter as potential employees in the working environment. Therefore, it is crucial for both public and
private higher education institutions to develop methods and techniques that will address this gap. Useful methods
can include work integrated learning initiatives that will expose students whilst they are studying to the practical
nature of jobs in an industry so that when they do graduate, the uncertainty and unawareness of what they will
face in the working world will significantly be reduced. Work readiness programs focusing on the development of
soft skills would also be a useful strategy to ensure that the core basic skills that are prerequisites in most industries
are developed in students before entering the labour market.

1. True
2. False. Paired comparisons
3. True
4. False. Alternation ranking
5. True

The 360-degree feedback process is a special case of upward feedback. In 360-degree feedback systems,
employees’ behaviours or skills are evaluated not only by subordinates but by peers, customers, their bosses and
themselves.
Case Study 8.1:

1. Yes
2. Organisations will focus on rating employees against predetermined goals and performance objectives
that have been set prior to commencing with specific work tasks and responsibilities.
3. Upward feedback refers to appraisal that involves collecting subordinates’ evaluations of managers’
behaviours or skills.
Video Activity 8.2:

Employees should feel comfortable being evaluated against any predetermined performance standard that has
been made transparent to them from the start. The problem that many employees do have with certain methods is
that they feel they are being personally appraised and not judged solely on their work performance.


1. False. Mixed-standard scales
2. True
3. False. Competency models
4. True
5. True

Unit
9: Labour Legislation in the HRM
Environment

9.2 Sources of Employment Related Law in • Understand the various sources of labour law in South
South Africa Africa


9.1 Introduction
In this age, human resource management departments are required to adapt to a fast-changing role. This reality
has impacted on South African organisations in much the same way it has affected HR departments globally. A
paradigm now exists that the HR department must be an integral part of strategies aimed at achieving successful
business outcomes. All organisational aspirations must be achieved within a legal framework imposed by a socio-
political macro environment that is beyond direct influence of the average organisation.
In this unit, we show the link between labour legislation and the impact it could have on the activities of the HR
department. Guides are provided indicating the best practice options available to HR departments in dealing with
legal realities. Legislation has a major impact on the operations of the HR department, and it is vital that these
legislations are adequately followed by the participants in the employment relationship (Nel et.al., 2018).
9.1.1 Overview of Employee Relations in South Africa

Without sound labour or industrial, South African organisations can forget about becoming more competitive.
Whether you are self-employed, work for a company or are employed by the government, you will be working with
people, and good relationships between people in the workplace are a key requirement for sound labour relations.
It is important to note that the employment relationship is essentially a relationship between the employer
(employers and employers’ organisations) and employee (labour and trade unions), as well as between
employer/employee and the state, thus making it a tripartite relationship (Wärnich et.al., 2018).
Video Activity 9.1

Watch the video: South Africa to implement Labour legislation changes
(2018)
https://www.youtube.com/watch?v=fXruJu1Et0Y
Assess the impact of these changes?
Think Point 9.1

Since the inception of Covid-19 in South Africa, there has been an additional
significant piece of legislation that we as citizens, organisations, and the state
have had to follow and abide by which is most commonly known as The
Disaster Management Act 57 of 2002.
Which minister and portfolio does the implementation of this legislation fall
under in our country?

9.2 Sources of Employment Related Law in South Africa

9.2.1 The Common Law and the Employment Contract
The common law rules relating to labour law are not found in legislation but rather are derived from custom and
practice. The employment contract may be defined as a contract between two persons, namely the employer and
the employee, for the letting and hiring of the employee’s services. In this type of contract, the employer has an
obligation and duty to supervise and control the employee’s work (Nel and Werner, 2018).
9.2.2 The Basic Conditions of Employment Act (BCEA) (No. 75 of 1997)

The BCEA is a vital component of South Africa’s protective labour law framework.
The primary objective of the Act is to:
• Stipulate and regulate relevant conditions of employment and the variation of such conditions
• Contribute to the creation of a secure, equitable, non-exploitative and harmonious work climate
• Give effect to and regulate fair labour practices as advocated in the Constitution (Nel and Werner, 2018)
9.2.3 The Employment Equity Act (No.55 of 1998) (EEA)

The EEA has two main elements:
• The prohibition of discrimination by all employers
• The duty placed on designated employers to implement affirmative action measures by means of
employment equity plans (Nel and Werner, 2018)
9.2.4 Labour Relations Act (No.66 of 1995) (LRA)

The Act seeks to advance economic development, social justice, labour peace and the participation of employees,
as worthy stakeholders, in the workplace. Its primary objectives are the following:
• To give effect to the rights and obligations of employees and their unions as well as employers and their
organisations in accordance with the fundamental rights of the Constitution and international labour
conventions
• To promote collective bargaining at sectoral level
• To promote employee participation at the workplace
• To promote dispute resolution and labour peace
The Act is relevant to and has a considerable impact on a number of HRM key functions such as:
• Performance appraisal and management
• Training and development
• Discipline management
• Retrenchments
• Collective bargaining and employee participation

• Strike handling and dispute resolution (Nel and Werner, 2018)
Case Study 9.1

Read the following case study based in South Africa
Constitutional Court Finding: The High Court and The Labour Court Have
Concurrent Jurisdiction On the Unlawful Termination of Employment
Contracts
16 December 2020 by Lenja Dahms-Jansen

https://www.mondaq.com/southafrica/employee-rights-labour-
relations/1016574/constitutional-court-finding-the-high-court-and-the-labour-
court-have-concurrent-jurisdiction-on-the-unlawful-termination-of-
employment-contracts?
Outline the hierarchy of the court structure in South Africa?
In a unanimous judgment handed down on 4 December 2020, in the matter
of Baloyi v Public Protector and Others (CCT03/20) [2020] ZACC 27, the
Constitutional Court held that the High Court and Labour Court have
concurrent jurisdiction to hear matters concerning an allegedly unlawful
termination of a contract of employment.
The facts
On 1 February 2019, Ms Baloyi was employed by the Office of the Public
Protector (Public Protector) as the Chief Operations Officer on a five-year
fixed-term contract. In terms of the contract, Ms Baloyi would be on probation
for six months until 31 July 2019. The Office of the Public Protector would be
allowed to terminate the contract if it was dissatisfied with her standard of
performance.
Ms Baloyi's probationary period came and went without incident. However, on

8 October 2019, some two months thereafter, Vussy Mahlangu (Mr Mahlangu),
the Chief Executive Officer of the Public Protector, addressed a letter to Ms
Baloyi inviting her to make representations on the confirmation of her
permanent employment with the Public Protector. Ms Baloyi did so in writing.
On 21 October 2019, Ms Baloyi received a further letter from Mr Mahlangu
stating that the Public Protector was unable to confirm her permanent
employment and that her contract would be terminated on 31 October 2019.

Ms Baloyi approached the High Court on an urgent basis, alleging that the
termination of her employment contract was, among other things, unlawful.
She sought an order from the High Court declaring that the decision to
terminate her employment contract was unconstitutional, unlawful, invalid and
of no force and effect, and that the decision be set aside. Ms Baloyi's
application in the High Court was unsuccessful. The High Court found that it
did not have jurisdiction to hear the matter and that Ms Baloyi ought to have
approached the Labour Court for relief.
In the High Court's view, Ms Baloyi had made allegations that raised a labour
dispute as contemplated by the Labour Relations Act 66 of 1995, as amended
(LRA), and the employment contract itself pointed to the LRA as the vehicle by
which to vindicate her rights. She had accordingly chosen the incorrect forum
in which to institute her dispute. Pursuant to this, Ms Baloyi appealed directly
to the Constitutional Court, and the Constitutional Court held that the crisp
question was whether the High Court had erred in finding that it lacked
jurisdiction to entertain Ms Baloyi's claim. The Constitutional Court declined to
entertain Ms Baloyi's dispute on its merits on the basis that the merits had not
yet been ventilated before a lower court.
The law
In considering the appeal, the Constitutional Court noted that the High Court
has exclusive jurisdiction to adjudicate any matter, except those that, among
others, have been assigned by legislation to another court with a status like
that of the High Court. In considering this, the Court noted the following:
Section 157(1) of the LRA provides for the exclusive jurisdiction of the Labour
Court in all matters that are to be determined by the Labour Court. However,
the section does not afford the Labour Court general jurisdiction in employment
matters. Accordingly, the High Court's jurisdiction would not be ousted by
section 157(1) of the LRA simply because a dispute is one that falls within the
overall sphere of employment relations

Section 157(2)(a) of the LRA provides that the Labour Court and the High Court
have concurrent jurisdiction in any alleged or threatened violation of any
fundamental right entrenched in the Constitution and arising from employment
and from labour relations
Additionally, section 77(3) of the Basic Conditions of Employment Act 75 of

1997, as amended (BCEA) provides that the Labour Court has concurrent
jurisdiction with the civil courts to hear and determine any matter concerning a
contract of employment, irrespective of whether any basic condition of
employment constitutes a term of that contract
The jurisdictional challenge that the Court was accordingly required to consider
was whether section 157(1) and (2) of the LRA had the effect of extending the
Labour Court's exclusive jurisdiction over an alleged unlawful termination of a
fixed-term employment contract. In order to determine whether the High Court
had jurisdiction to adjudicate Ms Baloyi's claim, it was necessary to determine
whether the claim was of such a nature that, in terms of the LRA or the BCEA,
it was required to be determined exclusively by the Labour Court. The Court
confirmed that an assessment of jurisdiction of a court must be based on an
applicant's pleadings, as opposed to the merits of the case.
The court's findings

The Court found that Ms Baloyi's cause of action flowed from contract, public
and constitutional law. On the contractual front, Ms Baloyi argued that the
contract was terminated out of time, long after the probationary period had
ended. Furthermore, the contract had provided that her employment would be
deemed to have been confirmed if the employer neither confirmed, nor
terminated the contract at the end of the stipulated period
The High Court had made a holistic assessment of whether the dispute was
located within the compass of labour law. Instead, the High Court was required
to determine whether the specific causes of action relied on by Ms Baloyi fell
within the jurisdiction of the High Court or the Labour Court

The Constitutional Court confirmed that the same set of facts may give rise to
several different causes of action. In the labour context, where a dismissal
dispute may give rise to more than one cause of action, a litigant must choose
the cause of action she wishes to pursue and prepare her pleadings
accordingly. Had Ms Baloyi sought to pursue an unfair dismissal claim, she
would have been obliged to approach the Commission for Conciliation,
Mediation and Arbitration or the Labour Court in accordance with section
157(1) of the LRA. However, just because it was open to Ms Baloyi to pursue
an unfair dismissal claim, it did not mean that she was required to.
The termination of a contract of employment has the potential to find a claim

for relief for the infringement of the LRA and a claim for enforcement of a
contractual right that does not emanate from the LRA. The exclusive
jurisdiction of the Labour Court is engaged in circumstances where legislation
mandates it, where a litigant asserts a right under the LRA, or relies on a cause
of action based on a breach of an obligation contained in the LRA
Consequently, the mere fact that a dispute is in the realm of labour and
employment does not exclude the jurisdiction of the High Court because
contractual rights exist independently of the LRA. Section 23 of the Constitution
does not deprive employees of a common law right to enforce the terms of a
fixed-term contract of employment. Furthermore, the LRA does not confine
employees to the remedies for unfair dismissals provided in the LRA
This case serves to confirm that the way a plaintiff chooses to frame a cause
of action will determine whether the High Court and the Labour Court have
concurrent (or in the latter instance, exclusive) jurisdiction over a dispute. In
circumstances where a plaintiff alleges that a contract of employment has been
terminated unlawfully and/or breached by an employer, it will be open for
her/him to approach the High Court or the Labour Court for relief.

1. In terms of the constitution, ‘fair labour practice’ has been recognised as
a fundamental right and as such must be treated with the necessary
attention and reverence?

2. The primary aim of the Employment Equity Act 55 of 1998 is to

contribute to the creation of a secure, equitable, non-exploitative and
harmonious work climate?
3. The Labour Relations Act 66 of 1995 seeks to advance economic
development, social justice, labour peace and the participation of
employees as worthy stakeholders in the workplace?
4. The employment contract may be defined as a contract between two
persons, namely the employer and the employee, for the letting and
hiring of the employee’s services?
5. Trade unions and employer organisations are examples of primary
participants in the employment relationship?
9.2.5 The Skills Development Act (No. 97 of 1998) (SDA)

The South African economy faces several challenges and skills development is one of those challenges. The Skills
Development Act (No. 97 of 1998), promulgated in 1999, makes provision for a new approach to skills development
that compliments the formal education, to ensure that the country develops a strategic human development
approach to improve its human capital (Nel and Werner et.al., 2018). It links skill formation to the requirements of
a growing economy and extends education and training to people both within and outside formal employment.
In tandem with the Skills Development Levies Act (No. 9 of 1999), the Skills Development Act places a legal
obligation on all employers to improve the competency levels of their workforce. The Skills Development Levies
Act (No. 9 of 1999) imposes a skills development levy on most employers and imposes government departments
to allocate a percentage of their budget to skills development (Meyer, 2017). As part of South Africa’s national
skills development strategy, the Skills Development Act (No.97 of 1998) was enacted Nel and Werner (2018).
The Purposes of the Act are:

• To develop the skills of the South African workforce
• To increase the levels of investment in education and training in the labour market and to improve the
return on that investment
• To encourage employers to:
o Use the workplace as an active learning environment
o Provide employees with the opportunities to acquire new skills
o Provide opportunities for new entrants to the labour market to gain work experience and
Employ persons who find it difficult to be employed
• To encourage workers to participate in learnership and other training programmes

• To improve the employment prospects of persons who were previously disadvantaged by unfair
discrimination and to redress those advantages through training and education, to ensure the quality of
education and training in and for the workplace, and to assist:
o Work-seekers in finding work
o Retrenched workers in re-entering the labour market and
o Employers in finding qualified employees and
• To provide and regulate employment services
The Skills Development Strategy is based on the National Qualifications Framework Act (No. 67 of 2008), which
makes provision for the National Qualifications Framework (NQF), established by the South African Qualifications
Authority (SAQA) (Meyer, 2017). This body of skills development legislation has fundamentally changed the face
of education and training in South Africa. The implications of these Acts for Human Resource Development (HRD)
is important to provide guidelines for designing and implementing relevant organisational strategies (Meyer, 2017).
Activity 9.1
Read the following: The Skills Development Levies Act 9 of 1999 and
summarise the process that is followed for the collection of the levy?
https://www.saqa.org.za/sites/default/files/2019-11/act9.pdf
Think Point 9.2

Imagine the levels of unfairness, exploitation, inequality and injustice that
would exist had we no laws and legislation in our country? As it is with these
laws, organisations and individuals are still regularly found guilty of pushing the
boundaries and manipulating the employment relationship to suit their own
personal agendas.
How much worse off would we be without them?
Activity 9.2
Read the excerpt below and evaluate the purpose of the Skills Development
Act 97 of 1998?
https://danshaw.co.za/skills-development-training-sa/

They say the smartest people among us are those who adopt a positive attitude towards life-long learning. Simply
put, the smartest people are those who realise that they will always have a lot to learn, and who spend their entire
lives accumulating knowledge to improve their skills development process. Learning as a result, can be best
described as a life-long process.
Skills development deserves a privileged position on every company’s to-do list. By prioritising skills development,
a company can attract in-demand employees, sustain growth, compete in their given industry, and even qualify for
government funding to help offset the cost. While all skills can be taught and acquired, hiring somebody who
possess certain skills already, and just helping them develop those skills, can save your company time and money.
The key to a successful skills development program is hiring the best HR Manager you can find, and letting them
impart their wisdom to your workforce, and hire training facilitators as needed. Investing in skills development
infrastructure and resources (both human and otherwise) is ultimately an investment in your company’s long-term
financial and overall success. Focus on skills development and focus on growth today
1. Sector Education and Training Authorities (SETAs)

There are various SETAs that have been established to cater for each national economy sector and these
institutional bodies are expected to perform the following functions:
• Strategic functions
• Implementation functions
• Communication and reporting functions
• Quality assurance functions (Meyer, 2017)

1. The Skills Development Act (No. 97 of 1998), promulgated in 1999,
makes provision for a new approach to skills development that
compliments the formal education, to ensure that the country develops a
strategic human development approach to improve its human capital?
2. SAQA is an acceptable abbreviation that means South African
Qualifications Association?
3. The Skills Development Strategy is based on the National Qualifications
Framework Act No. 67 of 2008?
4. In tandem with the Skills Development Levies Act No. 9 of 1999, the
Skills Development Act places a legal obligation on all employers to
improve the competency levels of their workforce?

5. SETA is an acceptable abbreviation for Sector Education and

Technology Authority?
2. Learnerships and Skills programmes

A substantial amount of the SETAs time is spent in handling matters relating to learnerships (Nel and Werner,
2018). A learnership is a mechanism to link structured learning with work experience, leading to a qualification
registered on the NQF as a reliable indicator of work readiness. (Meyer, 2017). The structured learning part of a
learnership must include the unit standard categories required to make up a qualification:
• Fundamental learning
• Core learning
• Specialisation
Skills programmes are another form of learning intervention to achieve the objectives of the Act, and is described
as unit standard-based programmes that are occupationally based and presented by an accredited provider, and
when completed, constitute a credit towards a qualification registered on the NQF (Meyer, 2017).
3. Workplace Skills Plan (WSP)

A WSP is a strategic plan, approved by the SETA, which outlines the training and development requirements for
an organisation for a minimum period of one year. The HR department needs to follow certain steps when
developing and implementing a WSP (Nel and Werner, 2018).
Guidelines for developing a WSP:
• Step 1: Proper workplace planning
• Step 2: Analysing jobs as an input to the workplace planning process
• Step 3: Identifying and defining the organisation’s skills requirements
• Step 4: Conducting a skills audit to determine the organisation’s current skills profile
• Step 5: Defining the organisation’s skills training priorities
• Step 6: Identifying the appropriate skills programmes to address the organisation’s identified training
needs
• Step 7: Implementing the WSP
• Step 8: Monitoring, evaluating and reporting on the WSP
• Step 9: Establishing a quality assurance system to ensure effective and value-added skills training and
development (Nel and Werner, 2018)

9.2.6 Collective Bargaining

Collective Bargaining is a process in which representatives of employees and representatives of the employer
(management) negotiate and otherwise interact to reach agreements and to uphold these agreements regarding
matters that relate to or may impact on the employment relationship. In terms of the LRA, employers are not
compelled to enter collective bargaining with employees. The Act does, however, strongly promote good faith
collective bargaining – especially at a centralised level.
For this reason, it provides for bargaining and statutory councils and the conclusion of collective agreements on
various matters of mutual interest between employers and employees. Collective bargaining takes place between
employers (who may be represented by employers’ organisations) and employees (usually represented by trade
unions). It may take place at various levels and different approaches to bargaining or bargaining styles can be
used (Wärnich et.al, 2018).
The LRA respects and recognises collective agreements, those struck by representatives of employers and
representatives of employees. These agreements cover such work-related issues such as:
• Recognition of trade unions
• The organisational rights of trade unions
• Bargaining units of trade unions
• Access of trade unions officials to the workplace
• Deduction of trade union dues
• Shop steward appointment and roles
• Bilateral meetings between representatives of employees and representatives of the employer
• Dispute resolution protocol
• Wage negotiation protocol
• The disciplinary and grievance codes; and any other procedures the collective bargaining agents prefer
to include (Nel and Werner, 2018)
Video Activity 9.2

Watch the video South Africa ranked worst in terms of labour relations (2018)
The World Economic Forum has ranked South Africa the worst labour
relations in the World Competitiveness report
https://www.youtube.com/watch?v=RTJsUUSgP8U
Discuss how this relates to collective bargaining?

Freedom of Association
The Act in its Chapter 2 guarantees the employees’ right to freedom of association and outlaws any retributive
action and/or victimisation by the employer if the employee forms or joins a trade union and participates in its lawful
activities. Even job candidates are protected from being discriminated against because of their trade union
membership. The same freedom of association rights afforded to the employees is equally provided for employers.
In any disputes regarding victimisation or interference with freedom of association, the complainant merely has to
prove that he or she has been compelled, threatened, prohibited or detrimentally affected in any manner and it is
then up to the defendant to prove that his or her action was not contrary to any provisions of the Act. (Nel and
Werner, 2018).
1. The Organisational Rights of Trade Unions

There are generally two types of trade unions that possess some power in terms of the LRA that can be used to
‘force’ the employer to recognise them. The one is what is known as a majority trade union with at least 50 per
cent plus one employee representation at the workplace or trade unions that work together (collaborate) and that
have, in total, the majority of the employees at a workplace and the other is a sufficiently representative trade union
with at least 30 per cent representation (a CCMA commissioner will adjudicate disputes in this regard making use
of set criteria and other considerations).
• The organisational rights of majority trade unions (or more than one union) that together represent the
majority of employees at a workplace include the following:
• Right of access to the workplace to hold meetings with employees outside of working hours
• Right to conduct ballots among employees
• Right to conduct an election at the workplace outside of working hours
• Right to be granted stop order facilities for the payment of trade union dues
• Right to appoint shop stewards
• Right to information that may be necessary for the purpose of representation or collective bargaining

Discuss the trends that will have an impact on trade union movements in
South Africa and internationally?
• Right to establish thresholds for representation in collaboration with the employer

• Right to reasonable leave to perform their function, in agreement with employer
• The rights of sufficiently representative unions

When a trade union has less than 50 per cent plus on employee representation in a company but at least has
around 30 per cent representation:
• Right of access to the workplace to hold meetings with employees outside of working hours
• Right to conduct ballots among employees
• Right to conduct an election at the workplace outside of working hours
• Right to be granted stop order facilities for the payment of trade union dues
2. Procedure for the exercise of organisational rights

According to Section 21 of the LRA any registered trade union may notify an employer in writing at any time that it
wishes to exercise organisational rights in a workplace. A certified copy of the trade union’s certificate of registration
must accompany the notice, which must specify the following:
• The exact workplace where the trade union seeks to exercise the rights
• The types of rights they want to exercise
• The level of representativeness and evidence to substantiate the allegation
The employer must meet the registered trade union within 30 days of receiving the notice and must attempt to
conclude a collective agreement on how the trade union will exercise the rights in that workplace. If a collective
agreement is not concluded, either the trade union or the employer may refer the dispute in writing to the CCMA.
The CCMA is enjoined to appoint a commissioner to attempt to resolve the dispute through conciliation (Nel and
Werner, 2018).
9.2.7 Occupational Health and Safety Act (No. 85 of 1993) (OHSA)

The aim of the OHSA is to establish institutions such as health and safety committees and the appointment of
safety representatives at the workplace to promote and monitor health and safety in all areas where work is done.
The Act introduces rules and standards by which organisations will be judged and the sanctions that they can
expect when standards are breached (Nel and Werner, 2018).

1. A learnership is a mechanism to link structured learning with work
experience, leading to a qualification registered on the NQF as a reliable
indicator of work readiness?
2. Negotiation and collective bargaining are interchangeable concepts?
3. A majority trade union is one with at least 20 per cent representation at
the workplace?

4. The aim of the OHSA is to establish institutions such as health and

safety committees and the appointment of safety representatives at the
workplace to promote and monitor health and safety in all areas where
work is done?
5. CCMA is an acceptable abbreviation for Council for Commission,
Mediation and Arbitration?
9.2.8 Unemployment Insurance Act (No. 63 of 2001) (UIA)

The Act was promulgated to establish the Unemployment Insurance Fund (UIF) which is entrusted to provide
unemployment benefits, maternity and adoption benefits and dependent’s benefits related to the unemployment of
such employees. Employees contribute the equivalent of 1 per cent of their remuneration which is matched by the
employer in equal measures.
Think Point 9.3

The Department of Labour has been inundated with claims for unemployed
insurance ever since the lockdown restrictions have been implemented in
South Africa during the early parts of 2019.
What more can our government do to provide for its citizens from a social
perspective considering that unemployment is major challenge and issue
facing our country?
9.3 Summary
The protective labour laws outlined provide the legal framework that underpins labour legislation in South Africa
and guidelines for HRM and HRD practitioners. It is essential that all participants in the employment relationship
abide by such legislation to minimise conflict escalation in our country. In years to come, there will be further
amendments, changes, and augmentations to the legal principles that govern the industrial relationship.

Discuss the concept of a shop steward and identify some of the functions that
they perform within the employment relationship?
Revision Questions
1. Outline the primary objectives of The Basic Conditions of Employment
Act 75 of 1997?

2. Describe what is meant by “freedom of association” in terms of the

employment relationship?
3. Describe what a trade union is and explain why employees join
unions?

Video Activity 9.1:

This will result in employers being legally bound to pay the minimum threshold in their respective industries. There
are pros and cons to this change of R20 now being the minimum. From an employer’s perspective, it might
discourage them to take on more staff due to experiencing an increasing salaries and wages bill which ultimately
eats into the profits of a business but from an employee’s perspective, this implementation will allow them to better
satisfy their daily needs and wants as their earning capacity and potential has improved slightly.
Think Point 9.1:

This falls under the portfolio of the Minister of Cooperative Governance and Traditional Affairs who happens to be
Nkosazana Clarice Dlamini-Zuma in South Africa.
Case Study 9.1:

The hierarchy of the court structure in South Africa from lowest to highest is as follows:
• Small Claims Court
• Magistrate Court
• High Court
• Supreme Court
• Constitutional Court

1. True
2. False. The Basic Conditions of Employment Act No. 75 of 199
3. True
4. True
5. False. Secondary participants
Activity 9.1:
The amount levied is 1% of the organisations payroll. This amount includes salaries, overtime payments, leave pay,
bonuses, commissions and lump sum payments. With regards to where the money goes, a well-structured and
audited system is in place where:
• Employers pay the levy to the SA Revenue Services (SARS) who capture each individual
employer’s payment
• The money and organisation’s information is transferred to the Department of Labour via the
National Revenue Fund

• The Department of Labour transfers 20% of the amount to the National Skills Fund (NSF)
• The Department of Labour transfers 80% of the funds to 25 Sector Education and Training
Authorities (SETAs) – each SETA gets 80% of what their employers paid
• Each SETA can spend up to 10% of the total levy paid for administration and running costs
Think Point 9.2:

If the world had no natural labour laws, trade for labour wouldn’t be possible. The only scenario where there are
no labour laws is a scenario where labour simply doesn’t exist. There would be widespread exploitation and only
the owners of factors of production would benefit. The gap between the rich and poor would significantly increase,
further contributing to inequality and injustice, especially in South Africa.
Activity 9.2:
This piece of legislation came into effect on the 1st of February 1999. Its purpose is to:
• Develop the skills of the South African workforce
• Increase the levels of investment in education and training
• Use the workplace as an active learning environment and provide employees with the opportunities to
acquire new skills
• Employ persons who find it difficult to be employed
• Provide opportunities for new entrants to the labour market to gain work experience
• Encourage workers to participate in leadership and other training programs
• Ensure the quality of education and training in and for the workplace

1. True
2. False. South African Qualifications Authority
3. True
4. True
5. False. Sector Education and Training Authority
Video Activity 9.2:

Collective bargaining is the process of negotiation that arises between participants in an employment relationship.
The fact that there is such a massive trust deficit between employer and employee, it can only give rise to more
collective bargaining taking place in the South African employment relationship pertaining to conditions of
employment like the working environment, salary increases, and appropriately legislated benefit schemes.
Employees will seek the assistance of their employee representative body, trade unions to engage in industrial

action such as protected strikes when they feel aggrieved or when their demands are not met. This is a massive
problem and issue as it has a negative impact on performance and productivity.

Trade unions are also affected by what is happening throughout the world. Like how organisations can be impacted
by the any of the macro-environmental factors, trends continue to have an impact on union movements globally.
Examples include:
• Increased pace and magnitude of globalisation
• Growth in forms and use of more insecure types of employment
• Growth and small businesses rather than large organisations
• Technological change presenting challenges and opportunities
• Changes in skills composition of the workforce partly related to sectorial shifts in economies
• Changes in demographics of workforces such as the rise in the number of female workers

1. True
2. True
3. False. 50% plus one employee
4. True
5. False. Commission for Conciliation, Mediation and Arbitration

A shop steward is regarded as a representative who is accredited by the trade union in the workplace. They have
the mandate to act on behalf of trade union members that work in the organisation. The shop steward is a unique
position and is an important role-player in the employment relations context. Some of the functions that they are
responsible for performing include:
• Responsible for the effective organisation of their branch
• Must enrol members for the trade union
• They assist and inform members when completing and submitting claims for appropriate benefits
• Encourage and rally members to attend trade union meetings and participate in discussions
• Keep the trade union informed about the needs of their fellow workers
• Guard the interest of all members and serve as a liaison
Think Point 9.3:

Firstly, government should try to eliminate criminal and corrupt elements from incorrectly utilising funds that are
meant for specific purposes. From a social perspective there needs to be an increase in economic growth that will

allow for job opportunities to be created. This will help alleviate the burden of the currently unemployed as well as
take pressure away from departments like labour to provide grants to those that are not earning an income.
Government can also look at increasing the monthly UIF contributions and deductions from all existing employees
to ensure that their financial purse increases but again, there needs to be proper appropriation of such funds to
ensure they serve their intended purpose.

Answers to Revision Questions
Unit 1
Revision Questions:
1. Any of the following functions are acceptable:

• Recruitment, Selection and Induction
• Remuneration, Incentives and Compensation such as payroll administration
• Training and development of management and employees
• Employee wellness programmes and initiatives
• Labour and industrial relations processes like grievance procedures and disciplinary hearings
• Performance appraisal and Performance management
• Administration of all types of leave be it annual, study, family responsibility, maternity or paternity,
religious or cultural and unpaid
• Any other example of a reasonable HR related activity
2. According to Wärnich et.al, (2018) successful growth organisations were able to utilise the HR function
to solve problems and achieve success in the following ways:
• Having the HR directors report directly to the general manager
• Placing major emphasis on employee recruitment, selection and training
• Using team building and creating an environment of rapid decision-making at lower levels
• Communicating key organisational performance objectives through all programmes and linking them to
goals at all levels
• Include HR planning as part of management’s strategic planning
• Involving line managers and working with them in a team to manage employees more effectively
• Using technology to assist where appropriate
3. a) Crime and corruption: negatively impact the efficacy of recruitment and selection practices in South
African organisations as individuals are being hired in both private and public sectors based on their
affiliations and relationships with individuals rather than their ability and competency levels.
b) Remote working: HR management is faced with the challenge of assessing, monitoring and evaluating
employees working away from an organisational environment which is tedious since they cannot observe the
behaviour, mannerisms and performance of employees. They can only observe employees by using virtual
methods such as MS Teams, Zoom and Skype.

c) Brain drain: Individuals that are highly skilled, educated and experienced are leaving South Africa at an
extremely rapid rate to explore employment opportunities and cultures in foreign countries like UAE, Saudi Arabia,
USA, Australia and England, leaving a massive void in the South African labour market with regards to human
capital in industries such as engineering, construction, finance, supply chain, medicine and teaching.
d) HIV/AIDS and Covid-19: The devastating loss of lives to many key professionals, the resulting high absenteeism
rates, loss in productivity and shortage of skills are all a consequence of immune-deficiency ailments like HIV/AIDS
and Covid-19 resulting in the country’s GDP stagnating or experience negative growth.
e) Education and Training: There is still a massive gap among many different demographics with regards to access
to affordable and basic primary, secondary and tertiary education in South Africa. Within organisations as well,
certain entities do not place value on training and upskilling staff with the result jobs become too simplified and our
labour market subsequently becomes characterised as majority semi and unskilled individuals.
Unit 2
Revision Questions:
1. Ulrich (1996) in his popular book Human Resource Champions, states that for HR professionals to be
successful, they will have to play at least four different roles;
• Change agent
2. a) Define talent management broadly

b) Integrate the various elements of talent management into a comprehensive system
c) Focus talent management on the most highly valued talent
d) Get CEOs and senior executives committed to talent-management work
e) Build competency models to create a shared understanding of the skills and types of behaviour the
organisation needs and values in employees
f) Monitor talent needs within the organisation to identify potential gaps
g) Excel at recruiting, identifying and developing talent, as well as at performance management and
retention.
h) Regularly evaluate the results of the talent-management system.

3. A Human Resource Information System (HRIS) refers to an information technology system, using intranet or
web-based systems, or even mobile device technology, to store and/or distribute HR information to designated
users at multiple access points. HRIS provides information, while E-HRM implies using this information to analyse
various situations, trends and changes and to make decisions that will support the attainment of the organisational
mission. Electronic human resource management, or E-HRM reflects a philosophy for the delivery of HR; it uses
information technology, particularly the Web, as the central component of delivering efficient and effective HR
services. Organisations embracing E-HRM do not simply use technology to support HR, rather they see technology
as an enabler for things to be done differently in the HR function by changing the way information flows and how
social interaction and communication take place
Unit 3
Revision Questions:
1. According to Nel and Werner (2018), the process of ensuring alignment between the organisation’s
strategy and HR strategy is referred to as ‘fit’ or alignment. There are two types of alignment:
• Vertical alignment – where all HR strategies, resources, and functions are in line with that of the
organisation
• Horizontal alignment – where all functions and activities within HR are aligned with each other.
2. The advantages of adopting an integrated approach to SHRM according to Nel and Werner (2018),
include the following:
• Improved understanding of the implications of strategic organisational planning for HR
• Proactive recruitment of the required and experienced HR
• Improved HR development activities
• Improved analysis and control of costs related to HR by providing more objective criteria for payroll,
labour market, training and other expenses.
3. Figure (3.1) indicates how the strategy should be aligned with the HRM function and represents the
vertical alignment between organisational strategy and HRM strategy and directs the HR activities towards
achieving strategic objectives (derived from the vision). It is the set of decisions and activities to be
formulated for implementation that will ensure competitive advantage in the future. Vision and mission are
important, but not the only two factors to ensure a successful organisation. It needs to be translated into
operational plans that will guide the activities of the function, in this case HRM as depicted in Figure (3.1).

Unit 4
Revision Questions:
1. Can be found on an organisation’s website or social media pages
2. Will differ from organisation to organisation
3. a) This can be determined by asking existing employees about their thoughts, views, perceptions
and opinions of the HR department at present.
b) Will most likely include the job descriptions of all staff and conducting a job analysis
c) All the existing members of staff and management
4. Can be achieved by performing a macro-environmental analysis and examine the findings and the
impact it will have on existing staff members
5. a) There will be obvious changes to work that will be done in the future compared to what is being
done now due to macro changes such as political, economic, social and technological
b) Depending on the rate of organisational growth or decline, the nature of the workforce may
either improve, stagnate or decline and the size may increase, decrease or stay the same
6. This will depend on labour market fluctuations and the demand/supply of labour
7. Should be formulated by top level management in a proactive fashion to avoid setbacks in
business activities and operations
8. The HR functional area of the organisation will be responsible for ensuring this is present
Unit 5
Revision Questions:
1. Organisations usually recruit both internally and externally. They tend to start with recruitment from
within the company, followed by external recruitment, or both processes are run at the same time. If
the organisation fails to find a suitable candidate from within the organisation, they then extend their
search externally. Sometimes they want an individual from outside as they can bring in new ideas,
fresh approaches and other innovative methods to improve the effectiveness and efficiency of the
organisation
2. Answer practical in nature but the letter of appointment should include Macro’s credentials, job title, job
description and reporting structure.
3. Flextime helps organisations to recruit skilled people who are unavailable for traditional full-time work
and is particularly beneficial to those employees who wish to schedule leisure activities and family
responsibilities and take care of personal business during working hours
4. Yes. Telecommuting has been accelerated because of Covid-19 but perhaps will be the way of
working in the future in certain industries if the bottom line is being accomplished and profits are
being made by the organisation.

Unit 6
Revision Questions:
1. Since training and development is a complex system, it is essential that it is linked to the organisation’s
objectives, goals and business strategies if it is to add value and contribute to the bottom line. This process
is known as strategic training and development and is evident when it:
• Develops essential employee capabilities that are linked to the organisation’s strategic plan
• Encourages adaptability to change
• Promotes ongoing learning in the organisation
• Creates and disseminates new knowledge throughout the organisation and facilitates communication
and focus (Wärnich et.al, 2018)
2a) By linking it to the to the organisation’s objectives, goals and business strategies
2b) Several different methods can help employees acquire new knowledge, skills and behaviours. The instructor-
led classroom remains the most frequently used training method. It is important to note that the use of online
learning, mobile learning and social networking for training continues to increase and expectations are that
this trend will continue. One estimate is that nearly 40% of executives plan to use tablets such as the iPad
into their new training and development initiatives. These devices are expected to be used for learning and
performance support but also for coaching and mentoring employees, mobile gaming and microblogging
(e.g., Twitter). Regardless of the training method, for training to be effective, needs assessment, a positive
learning environment and transfer of training are critical for training programme effectiveness.
2c) Needs assessment according to Noe et al. (2019)) typically involves:
• Organisational analysis
• Person analysis and
• Task-analysis
Unit 7
Revision Questions:
1. Will differ from organisation to organisation but generally they play a significant role in determining
whether existing employees will want to stay where they currently are or seek greener pastures at
another organisation. They are also a huge role in enticing talented individuals to potentially join the
organisation.
2. Will also differ from organisation to organisation but generally the net salary (take home pay) is most
valuable to employees as it directly impacts their disposable income levels.
3. This is still an ideology yet to take off really in South African based firms but perhaps in more developed
countries it is already in existence and starting to gradually grow.
4. Benefits include higher staff morale, better levels of productivity, reduced labour turnover and higher
levels of job satisfaction. The limitations will include not being able to roll out such a practice to all

organisational employees as often, the level of knowledge, skills and experience dictates the
compensation received by employees.
Unit 8
Revision Questions:
1. The attribute approach to performance management focuses on the extent to which individuals have certain
attributes (characteristics or traits) believed desirable for the company’s success. There are two forms of the
attribute approach:
a) Graphic rating scale: is the most common form that the attribute approach to performance management
takes. A list of traits is evaluated by a five-point (or some other number of points) rating scale. The manager
considers one employee at a time, circling the number that signifies how much of that trait the individual has.
b) Mixed-standard scales: to create a mixed-standard scale we define the relevant performance dimensions
and then develop statements representing good, average, and poor performance along each dimension.
These statements are then mixed with the statements from other dimensions on the actual rating instrument.
2. a) Behaviourally Anchored Rating Scales (BARS): is designed to define performance dimensions by
developing behavioural anchors associated with different levels of performance. To develop BARS, we first
gather many critical incidents that represent effective and ineffective performance on the job. These incidents
are classified into performance dimensions, and the ones that experts agree clearly represent a level of
performance, are used as behavioural examples to guide the rater. The manager’s task is to consider an
employee’s performance along each dimension and determine where on the dimension the employee’s
performance fits using the behavioural anchors as guides. This rating becomes the employee’s score for that
dimension.
b) Behavioural Observation Scales (BOS): is a variation of BARS and differs in two basic ways. Firstly, rather
than discarding many the behaviours that exemplify effective or ineffective performance, a BOS uses many of
them to more specifically define all the behaviours that are necessary for effective performance. Secondly,
the difference is that rather than assessing which behaviour best reflects an individual’s performance, a BOS
requires managers to rate the frequency with which the employee has exhibited each behaviour during the
rating period. These ratings are then averaged to compute an overall performance rating.
4. According to Noe et.al. (2019), to provide effective performance feedback managers should consider the
following recommendations:
• Feedback should be given frequently, not once a year.
• Create the right context for the discussion
• Ask the employee to rate his or her performance before the session
• Encourage the employee to participate in the session
• Recognise effective performance through praise

• Focus on solving problems

• Focus feedback on behaviour or results not on the person
• Minimise criticism
• Agree to specific goals and set a date to review progress
5. The results approach focuses on managing the objective, measurable results of a job or work group. This
approach assumes that subjectivity can be eliminated from the measurement process and that results are
the closest indicator of one’s contribution to organisational effectiveness. Two performance management
systems use results:
• Balance Scorecard: the balance scorecard uses four perspectives of performance including; financial,
customer, internal or operations and learning and growth. The financial perspective focuses on creating
sustainable growth in shareholder value, the customer perspective defines value for customers (e.g.,
service, quality), the internal or operation perspective focuses on processes that influence customer
satisfaction, and the learning and growth perspective focuses on the company’s capacity to innovate
and continuously improve. Each of these perspectives are used to translate the business strategy into
organisational, management and employee objectives
Employee performance is linked with the business strategy through communicating and educating
employees on the elements of the balanced scorecard, translating strategic objectives into measures for
departments and employees and linking rewards to performance measures. Employees need to know
the corporate objectives, how they translate into objectives for each business unit, and develop their
own and team objectives that are consistent with the business unit and company objectives.
• Productivity Measurement and Evaluation System (ProMES): the main goal of ProMES is to motivate
employees to improve team or company-level productivity. It is a means of measuring and feeding back
productivity information to employees. ProMES consists of four steps:
a) First, people in an organisation identify the products or the set of activities or objectives the organisation
expects to accomplish.
b) Second, the staff defines indicators of the products. Indicators are measures of how well the products
are being generated by the organisation.
c) Third, the staff establishes the contingencies between the amount of the indicators and the level of
evaluation associated with that amount.
d) Fourth, a feedback system is developed that provides employees and work groups with information
about their specific level of performance on each of the indicators.

Unit 9
Revision Questions:
1. The BCEA is a vital component of South Africa’s protective labour law framework and its primary objective is
to:
• Stipulate and regulate relevant conditions of employment and the variation of such conditions
• Contribute to the creation of a secure, equitable, non-exploitative and harmonious work climate
• Give effect to and regulate fair labour practices as advocated in the Constitution
2. Chapter 2 of the LRA guarantees the employees’ right to freedom of association and outlaws any retributive
action and/or victimisation by the employer if the employee forms or joins a trade union and participates in its
lawful activities. Even job candidates are protected from being discriminated against because of their trade
union membership. The same freedom of association rights afforded to the employees is equally provided for
employers. In any disputes regarding victimisation or interference with freedom of association, the complainant
merely has to prove that he or she has been compelled, threatened, prohibited or detrimentally affected in any
manner and it is then up to the defendant to prove that his or her action was not contrary to any provisions of
the Act.
3. A trade union can be classified as a registered body representing a majority representative number of
employee’s interests at workplace level. They are also inclusive of assisting in grievances and disciplinary
hearings, dispute resolutions and collective agreements. They serve the purpose of acting as a liaison between
its members and management to protect workers’ rights when it comes to remuneration and the improvement
of working conditions. Some of the major reasons as to why employees join trade unions include:
• Protection in terms of job security
• Improved working conditions
• Basic economic and security needs
• Have their rights upheld in the workplace?
• Lack of need satisfaction with regards to their status and employment situation

References
• Abbasi, S.G., Tahir, M.S., Abbas, M. and Shabbir, M.S., 2020. Examining the relationship between
recruitment & selection practices and business growth: An exploratory study. Journal of Public Affairs,
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Bachelor of Business

CONTEMPORARY HUMAN RESOURCE

Unit 1: Introduction to Human Resource Management ........................................................................................... 9

Unit 2: The Strategic and Operational Role of HRM in an Organisation ............................................................... 34

Unit 3: Human Resource Strategy and Business Strategy.................................................................................... 57

Unit 4: Talent Planning And Workforce Planning .................................................................................................. 75

Unit 5: Recruitment and Selection......................................................................................................................... 99

Unit 6: Training Needs Analysis .......................................................................................................................... 124

Unit 7: Compensation Systems ........................................................................................................................... 142

Unit 8: Performance Management and Appraisal ............................................................................................... 159

Unit 9: Labour Legislation in the HRM Environment ........................................................................................... 177

Answers to Revision Questions .......................................................................................................................... 198

Table 5.1: Factors influencing recruitment .......................................................................................................... 102

Table 5.3: The factors influencing selection ........................................................................................................ 114

Table 7.1: The elements of total compensation .................................................................................................. 145

Figure 2.1: The Scientific Context of HRM ............................................................................................................ 36

Figure 2.2: HRM’s roles in building a competitive advantage ............................................................................... 39

Figure 2.3: The elements of talent management .................................................................................................. 44

Figure 3.1: Strategic Alignment (Nel and Werner, 2018). ..................................................................................... 63

Figure 4.1: Strategic HR Planning and Organisational Strategies ........................................................................ 85

Figure 5.1: Steps in the Recruitment Process .................................................................................................... 101

Figure 5.2: Generation Cohorts .......................................................................................................................... 112

Figure 5.3: Steps in the Selection Process ......................................................................................................... 115

1 MANCOSA – Bachelor of Business Administration Honours

We hope you enjoy the module.

MANCOSA – Bachelor of Business Administration Honours 2

C. Exit Level Outcomes and Associated Assessment Criteria of the Programme

• Develop an understanding of a broad range of • Management functions and management practices

3 MANCOSA – Bachelor of Business Administration Honours

D. Learning Outcomes and Associated Assessment Criteria of the Module

LEARNING OUTCOMES OF THE MODULE ASSOCIATED ASSESSMENT CRITERIA OF THE MODULE

• Explain the sphere of responsibility of • The sphere of responsibility of human resource

• Illustrate an appropriate compensation • Compensation systems for small enterprises is interrogated

MANCOSA – Bachelor of Business Administration Honours 4

E. Learning Outcomes and the Associated Assessment Criteria of the Units

F. Notional Learning Hours

Types of learning activities time

Lectures/Workshops (face to face, limited or technologically mediated) 10

Tutorials: individual groups of 30 or less 0

Practical workplace experience (experiential learning/work-based learning etc.) 0

Independent self-study of specially prepared materials (case studies, multi-media, etc.) 20

5 MANCOSA – Bachelor of Business Administration Honours

G. How to Use this Module

I. Prescribed and Recommended Textbook/Readings

The prescribed and recommended textbooks/readings for this module are:

MANCOSA – Bachelor of Business Administration Honours 6

Special Feature Icon Explanation

LEARNING The Learning Outcomes indicate aspects of the particular Unit

The Associated Assessment Criteria is the evaluation of the

A Think Point asks you to stop and think about an issue.

7 MANCOSA – Bachelor of Business Administration Honours

You may come across Knowledge Check Questions at the end of

You may come across Revision Questions that test your

Case Studies are included in different sections in this Module

You may come across links to Videos Activities as well as

MANCOSA – Bachelor of Business Administration Honours 8

9 MANCOSA – Bachelor of Business Administration Honours

Unit Learning Outcomes

CONTENT LIST LEARNING OUTCOMES OF THIS UNIT:

1.1 Introduction • Introduces topic areas of the unit

1.7 Summary • Summarises content areas of the unit

Prescribed and Recommended Textbooks/Readings

MANCOSA – Bachelor of Business Administration Honours 10

Think Point 1.1