Professional Documents
Culture Documents
Lesson 02 For hrd4801
Lesson 02 For hrd4801
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002
1
Lesson 02
Consult the study plan that appears in lesson 00 under Official Study Material on the
myUnisa HRD4801 module page.
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LEARNING OUTCOMES
Here are the learning outcomes and assessment criteria for this lesson. After studying this
lesson, you should be able to do the following.
You will encounter several acronyms and abbreviations in this lesson. Here is a list of their meanings.
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Lesson 02
ACRONYM / MEANING
ABBREVIATION
AIDS Acquired Immune Deficiency Syndrome
` ASTD American Society for Training and Development
002 BBBEE Act Broad-Based Black Economic Empowerment Act 53 of 2003
EE Act Employment Equity Act 55 of 1998
ETD Education, Training and Development
IDP Individual Development Plan
HR Human Resource
HRD Human Resource Development
HRM Human Resource Management
JSE Johannesburg Stock Exchange
MME Measure, Monitor and Evaluate
OHSA Occupational Health and Safety Act 85 of 1993
PDP Personal Development Plan
ROI Return on Investment
RPL Recognition of Prior Learning
SABPP South African Board for People Practices
SAQA South African Qualifications Authority
SDA Skills Development Act 97 of 1998
SDLA Skills Development Levies Act 97 of 1998
SDP Skills Development Plan
SETA Sector Education and Training Authority
SSP Sector Skills Plan
WSP Workplace Skills Plan
Three Ps / triple bottom line People, Planet and Profit
Ensure that you are familiar with all the concepts in this lesson. Consult the e-reserves, learning material for
undergraduate studies and this lesson for definitions of concepts. You should be able to use them correctly in
the field of HRD. In this module, you will need to apply your theoretical knowledge to the working environment
or real-life scenarios of these concepts.
2.1 INTRODUCTION
In Lesson 01 you have learnt about several aspects of corporate governance. You need to
be familiar with these to understand the responsibility of the human resource (HR) team in
terms of human resource development (HRD) governance.
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Lesson 02
The aim of this lesson is to discuss the implications of corporate governance for the HRD
function in organisations. We will explore the significance and relevance of governance in
HR and HRD, the concept of HRD governance, the implications of the King IV Report for
` HRD, the role of the HRD team in HRD governance and guidelines for the application of
002
strategies for the implementation of HRD governance.
FIGURE 2.1: The relationship between the main sections covered in Lesson 02.
In this section, we focus on the first elements illustrated in Figure 2.1. Scarce resources,
skills shortages, a stressed workforce, low morale, disengaged employees and a lean and
mean HRD function are often listed as having a significant negative effect on organisations,
and the HR and HRD teams are often blamed for the negative impact of these factors on
the organisation, service delivery and the bottom line. Sound governance practices could
make a positive contribution.
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Lesson 02
As a student in HRD you should make a habit of keeping in touch with both global and local entities that
have a significant impact on HRD-related matters.
Good HRM is about managing people to achieve organisational goals. In general, the HR function is
responsible for the development and implementation of HR (and, by implication, HRD) policies,
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procedures, strategies, systems and processes that will ensure effective management of the HR function
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in the organisation. Specifically, managers are responsible for ensuring the sound HRD governance of
organisations by utilising proactive strategies, not only to ensure compliance with the code but also to
leverage people development to optimise their contribution to the triple bottom line (Meyer 2009a:5).
Dhlamini-Kumalo (2016), in her article The HR Implications of King IV Report, concluded that:
"the corporate governance system has been strengthened and this bodes well for improved
governance of South African organisations. However, we must guard against the mindless
application of the King IV Report without optimising the role of people, i.e. all key stakeholders –
directors, managers, employees, trade unions and other role-players. I would like to challenge HR
Directors to read the King IV Report and align current HR strategies and governance structures.
To expedite this process, and to support HR Directors with their preparation as Executive
Committee, Remunerations Committee, Social and Ethics Committee, or Board member roles,
the SABPP HR Governance Steering Group will continue with analysis and research to build a
body of knowledge on corporate governance in general and HR Governance specifically. We
encourage HR Directors to improve their knowledge and functioning as Directors and Prescribed
Officers. The ultimate goal is to make all people key custodians of good governance, thereby
ensuring that our organisations develop cultures conducive to the best possible level of corporate
governance."
Meyer (2009a:13) suggested that HRD managers should take full ownership of the HR governance
implications of the King IV Report and develop HR and HRD governance frameworks to strengthen the
governance of South African organisations. In light of the principles and practices of sound governance,
the most important role of HRD managers involves the prevention of incompetence by building highly
competent directors, management teams and workforces.
We have entered a new era of HRD governance. Progressive HRD managers will become HRD governors
– true high-level professionals who create connections between learning, the board and the triple bottom
line. HRD professionals have a unique opportunity to elevate the learning function to board level by actively
implementing (and going beyond) the King IV Code, and thereby ensuring that HRD contributes directly to
sustainability and the sound governance of organisations.
The preceding discussion is confirmed in the following statement by Jim Collins (in Meyer 2010b:20):
"Whether an organisation sustains exceptional performance depends first and foremost on whether it
continues to have the right people in power."
There are still many HR teams and practitioners who view governance and compliance as occupying the
same level. Meyer (2009a:15) states that HR teams and practitioners have two choices, namely, to
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Lesson 02
continue to operate as HR compliance officers or to elevate the HR domain to the level of HR governance.
In lesson 01, you learnt that to achieve good governance, all organisations should apply corporate
governance principles. This implies that all HR and HRD teams should take responsibility for governance
in` the HR function. In determining the role of the HRD team in ensuring governance, we will focus on the
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implications of governance for the HRD function that were highlighted in the reports, more specifically the
King IV Report, to ensure effective implementation of HRD governance principles. HRD managers should
be prepared to accept and adapt to new roles that will influence the triple bottom line of their organisations.
This implies that they should understand the new roles and the concept of the triple bottom line or the
three Ps, which you have learnt in Lesson 01, and the responsibility of organisations to balance the three
Ps and manage their people, the environment and profits effectively (Meyer 2010a).
Before we start our discussion, let us review what we discussed in Lesson 01 and
how this links up with HRD governance.
In section 1.3.1 of Lesson 01, we focused on the concept of corporate governance. Let us now explore
the meaning of HR governance, and then consider the concept of HRD governance.
Heslop, Hilbron, Koob and Szumyk (2005:2) of Mercer Consulting define HR governance as "the act
of leading the HR function and managing-related investments" to do the following:
This definition implies the need for an HR governance model that can assist in dealing with many of
the HR problems and challenges encountered by South African organisations, such as HR risk
management and corporate ethics. Most of these problems and challenges appear to arise from
ineffective corporate governance (Meyer 2009a:15).
In this lesson, we will work with Meyer's (2009a:15) explanation of HR governance that "HR
governance is the act of leading, directing and controlling the HR function to promote sound
corporate governance in pursuit of the overall business goal of economic, social and environmental
sustainability."
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Lesson 02
Do not confuse the concepts of management and governance. Figure 2.2 illustrates the different
levels in an organisation, namely the board, management and the employees. It also distinguishes
between
` the concepts of governing, managing and executing and the managerial functions relating
to each
002 of these concepts.
To understand HRD governance, we need to be aware of the role and impact of education, training and
development (ETD) in HRD governance (Meyer, Orpen & Rajaram, 2017). South Africa: LexisNexis
emphasise the fact that local trends in ETD are driven by training legislation and national HRD needs.
Although South African organisations should implement international HRD trends, the underdeveloped
nature of our HR requires additional interventions. Most of these interventions, such as the recent Skills
Development Act 97 of 1998 (SDA), the amended SDA and the Skills Development Levies Act 97 of 1998
(SDLA), necessitate a broader approach to HRD and ETD. From an ETD perspective, three important
priorities have emerged, namely:
According to Meyer, Orpen and Rajaram (2017), the new ETD or HRD landscape in South Africa focuses on
balancing the need for performance with the requirement of compliance with skills development and South
African Qualifications Authority (SAQA) legislation. Therefore, ETD or HRD governance can be defined as
follows (Meyer, Orpen & Rajaram, 2017): "Leading, directing and controlling the ETD or HRD function to
promote sound corporate governance by developing people in pursuit of the overall business
This definition implies that governance is not only about compliance with legislation, but also about
performance to ensure the sustainability of a function and an organisation. For example, an organisation may
comply
` entirely with all relevant legislation, but if its employees do not perform in terms of meeting the
organisational
002 objectives, the sustainability of the organisation is threatened. It is crucial for employees and
managers to understand the relationship between these two factors. The important relationship between ETD
or HRD compliance and ETD or HRD performance is summarised in figure 2.3.
PERFORMANCE COMPLIANCE
ACTIVITY 2.1
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Lesson 02
PERFORMANCE
` Item Yes No Comments
002 Not all team members have bought into
Does your HRD department apply a
X the new performance management
performance management system?
system.
COMPLIANCE
Item Yes No Comments
Does your HRD department comply with
The BBBEE strategy has not been shared
the Broad-Based Black Economic X
with all employees to obtain their buy-in.
Empowerment Act 53 of 2003?
While the general governance of organisations is dealt with in the King III Report, the
King IV Report has in many cases downscaled the importance of human capital under
functional governance, which was initially well articulated in the King II Report. This is
cause for concern. For the HR community, this could represent a significant regression
(Meyer 2016). Further support for this concern is evident in the following extract from
the King II Report (Institute of Directors in Meyer 2009a:8):
Organisations should disclose the criteria by which they propose to measure human capital development
and report accordingly on their performance in terms of such criteria. Organisational practice should reflect
requirements of human capital development in areas such as the number of staff, with a focus on
demographics (race, gender and disabilities), age, corporate training initiatives, employee development and
financial investment committed. Reporting on the development of human capital provides both a public
account of past performance and, more importantly, an indication of future prospect.
However, Meyer (2009a:3–4) highlights the following principles: fairness, accountability, responsibility and
transparency. Most of the King IV governance principles relate to corporate and human conduct and therefore
ultimately affect the domain of human capital management.
Activity 2.2
Review section 2.4 in this lesson and study the following source:
Meyer, M. 2016. Comments on the King IV Report and code on governance: HR Implications.
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Lesson 02
An HR research initiative of the South African Board for People Practices (SABPP).
SABPP Paper on King IV 2017/2. Consider the reference to HR and HRD in the King IV Report.
(This source is part of the e-reserves.)
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002 • Do you agree with the statement that the importance of human capital has been
downscaled in the King IV Report? Give reasons for your answer.
• You are an HRD practitioner. Make three recommendations to the HR management team
of your organisation that would assist them in upscale or elevating human capital in your
organisation.
Feedback
• Your responses will be based on your own experiences and perceptions of the importance
of human capital in your organisation. In general, human capital was well articulated in the
King II Report but several important aspects of human capital were not included in the King
III and King IV Reports. An example is the disclosure of criteria for use in measuring and
reporting HRD.
• The recommendations will differ from one organisation to another because each
organisation has its own needs, challenges and culture. For example, an organisation
should
− implement an induction programme for all newly appointed board members and
directors of the organisation; and
− conduct a comprehensive stakeholder analysis to ensure that the needs and
requirements of all the stakeholder groups related to an organisation are understood
and satisfied.
TABLE 2.1: Corporate governance disclosure in annual reports of South African organisations
Note: More sensitive disclosure areas that relate to AIDS, employment equity figures and remuneration
were not included in the annual reports.
TABLE 2.2: Elements of governance in the King III Report and HR and HRD links.
The King III code, like its predecessor, highlights the importance of ethics
5. Ethical leadership and at board, management and staff levels and, in particular, the need for an
corporate citizenship ethical culture. The HR and HRD teams should play a key role in instilling
a culture of ethics in an organisation.
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Lesson 02
6. Governance of risk – human HR should conduct a comprehensive people risk analysis. See the
capital discussion in section 2.4.3.
Study SABPP Paper by Meyer, M. 2017. Comments on the King IV Report and code
on governance: HR Implications HR research initiative of the South African Board for
People Practices (SABPP). Paper on King IV 2017/2. Consider the reference to HR
and HRD in the King IV Report.
This document provides a detailed explanation of each of the elements outlined in table
2.2 and forms part of the e-reserves.
Activity 2.3
Reflect on the HR and HRD links set out in table 2.2 in section 2.4.2 and indicate
whether you agree that each link is important. Give reasons for your view in each case.
List the links that are relevant to the HRD function in your organisation.
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Lesson 02
Feedback
Your responses will depend on your own views, observations and experience in your
` organisation. The next table shows possible responses to this question.
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ELEMENT COMMENT
Element 1: I agree that this link is important. At least seven of the 10 leaders, board members and
directors of our organisation have been in their positions for more than 15 years. The
Ethical leadership
stakeholders of our organisation should be confident that the leaders, board members and
and corporate directors are competent and aware of trends and changes in the different environments that
citizenship might affect our organisation.
Element 2: I agree that this link is significant. The reasons listed in element 1 would be relevant to this
Boards and directors element and link.
McNamee, in the contribution entitled "People are risks as well as assets" (2004:109), argues that the
potential for employees to cause productivity and financial losses to an organisation has increased sharply.
People assets are susceptible not only to physical risks but also non-physical risks. People risks are often
subtle and complex and may be more difficult to measure and manage than conventional operational or
financial risks.
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Lesson 02
Meyer (2010b:26) explains that people's risks could include the following:
• Poor employee performance • Reduced employee wellness
• Excessive absenteeism • Incompetence
` • Grievances and disputes • Low morale
•
002 Non-compliance with industry and other • Organisational culture
regulations and laws • Talent shortages and retention
• Organisational sabotage • Workplace violence
• Unethical behaviour
This shows that it is essential for the HR and HRD teams to be aware of and manage people risks in the
organisation. Effective management of people risks implies that all people risks should be factored into major
organisational decisions. The different levels of management that should identify and report people risks in
an organisation are the operational, management, executive and board levels. There should also be a
reporting and feedback process in place to ensure effective reporting of the risks.
Activity 2.4
• Review the information about people risks in section 2.4.3. Assess the status of
people risks in your organisation by answering the following questions:
Feedback
You could have used any of the people risks listed in section 2.4.3, or you could have identified
other risks that you have experienced/observed in your organisation. The following table
shows how you could have assessed and rated the status of people risks in your organisation.
This activity should have made you aware of the people risks that could affect the organisation's achievement
of its vision and strategic objectives. Awareness of the people risks will make it easier to manage them.
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Lesson 02
` This section explores the competencies the HRD team needs and the role it should fulfil for
002 HRD governance to be applied effectively.
This workplace learning and performance competency model consists of the following:
• Foundational competencies
This level reflects the competencies required of an effective HRD practitioner. These skills are divided
into three categories, namely: interpersonal, business and personal.
• Areas of expertise
This level indicates the areas of expertise that an HRD practitioner needs. These areas include
designing learning, improving human performance and delivering learning.
Meyer (2010b:16) traces the evolution of the HR function over the past four decades.
• In the late 1970s and 1980s, the people responsible for ensuring that organisations complied with
labour laws were HR regulators or administrators. In many cases, while they did an excellent job in
ensuring adherence to labour legislation, the focus on compliance was so rigid that there was less
emphasis on business performance.
• HR managers realised in the 1990s that compliance alone is not enough; therefore, they tried to place
greater emphasis on performance. However, in many cases, HR managers lacked credibility and could
not convince line management of the value that HR and HRD teams could add to the business.
• In the 2000s, HR leaders emerged as highly skilled strategic business leaders who understood the
dynamics of business and the role of people in optimising performance. Because most organisations
already had sound compliance frameworks in place, compliance received less attention. HR managers
who started compliance received less attention and they started to function as leaders and became
business partners in organisations.
• HR governors are high-level people stewards who lead, direct and control the HR function in active
pursuit of the corporate governance outcome of sustainability, focusing on the triple bottom line. They
are strong in both compliance and performance issues, taking the HR function to the first decade of
• The 21st century. HR governors are more than just business partners; they are stakeholder partners.
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Lesson 02
In many organisations, HR and HRD teams are still viewed as administrators. This implies that many of these
teams are still seen as fulfilling the traditional roles of HR regulator and HR manager because they have not
moved into the roles of HR leader and HR governor. These four roles are equally important for the effective
functioning
` of an HR and HRD team and should be fulfilled at different levels in the HR and HRD teams. To
achieve
002 this, the HR and HRD teams should accept responsibility for fulfilling all four roles effectively. HR
and HRD leaders need to assert themselves and claim the positions of HR leader and HR governor. This
can be done through long-term and sustainable relationships with all different stakeholder groups.
Reflection
Now that you have been exposed to and are familiar with the four versions of the King Report, specifically
the King IV Report, reflect on the following questions.
1. What role do you envisage the HRD section in your organisation, or in most organisations you have
read about, to fulfil through managing corporate governance by using the King IV code as a
guideline.
2. Do you feel that the HRD knows, understands, applies, and can use the King IV Report in terms of
ethical decision-making?
3. What role does HRD management play in corporate governance?
Clearly, we have entered a new era of HR and HRD governance. Progressive HR and HRD directors and
managers will become HR and HRD governors and connect HR and HRD with the board or executive team
of an organisation. HRD professionals have a unique opportunity to elevate the HRD function to the board
level by actively supporting and implementing the King III and IV codes, thereby ensuring that HRD
contributes directly to sustainability and the sound governance of organisations. The true test of a successful
HRD function operating from an HRD governance perspective will be the quality and quantity of HRD inputs
into the organisation's integrated report. Only then will HRD be able to claim that it deserves to occupy a
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Lesson 02
meaningful position at the board or executive level. In fact, governance, risk and compliance provide a
perfect opportunity for chief HRD officers and HRD organisations to move beyond their traditional
administrative role and earn a seat at the strategy table – providing HRD with a level of credibility and
respect
` that is long overdue (Deloitte in Meyer 2010b:20).
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Bear in mind that the HR and HRD teams are expected to ensure that the HR and HRD functions contribute
to the triple bottom line of the organisation. What does this mean? In the next section we will investigate the
concept and impact of the triple bottom line (the three Ps) on HRD governance.
To move to HRD governance, the HRD manager needs to understand the three Ps to respond proactively
to their implications for the sustainability of the organisation and its stakeholders. The three Ps are
integrated and aligned with stakeholder management, social responsibility and financial stability for growth
and sustainability.
Study this section in conjunction with lesson 04, which deals with outsourcing. Most organisations use HRD
providers to assist and support the HRD team with HRD interventions for their clients. Managing and
evaluating these HRD providers is extremely important in HRD governance, as this can influence the quality,
performance and ultimately the financial growth of the organisation. If the services, interventions,
programmes, assessment strategies and procedures are not in line with legislative requirements, the
organisation, its brand and its stakeholders could be negatively affected.
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Lesson 02
In this section we discuss criteria that should help the HRD manager and other team members responsible
for the evaluation of HRD providers to conduct fair and transparent evaluations. First, we need to have a
shared understanding of the concept of evaluation in this context. For this section and lesson, evaluation
consists
` of all decisions relating to learning projects and/or the learning system. Evaluation is a systematic
determination
002 of the merit, worth and significance of something or someone using criteria against a set of
standards. Evaluation criteria in this context should be based on quality assurance of assessment and
moderation processes and tools and decisions for fairness, reliability and validity (Govender 2009:4).
The evaluation criteria that should be used in evaluating HRD providers should be linked to the HRD
strategy, plans and processes. To evaluate the products, services and interventions of HRD providers, the
HRD team should ensure that its strategies, plans and processes are in place. The HRD team should focus
on the following (Govender 2009):
• Does the HRD team have appropriate processes, tools and systems in place to measure, monitor and
evaluate (MME) the services, products and interventions of the HRD providers?
• Does the HRD team implement an inclusive stakeholder approach to ensure stakeholder
accountability? In this approach, the board of directors considers the legitimate interests and
expectations of stakeholders on the basis that this is in the best interests of the organisation, and not
merely an instrument to serve the interests of the shareholder (Institute of Directors 2009b:11-12).
• Does the HRD team implement effective quality assurance (QA), communication, talent
management and performance management processes to support the inclusive stakeholder
approach?
• Does the HRD team ensure that plans such as the following are effectively managed and
implemented?
− Personal development plans (PDPs)
− Individual development plans (IDPs)
− Skills development plans (SDPs)
− Workplace skills plan (WSP) for the sector skills plan (SSP)
Draw your own checklist that contains criteria for effective HRD provider evaluation. For example:
• Satisfy all SAQA and the SETA (sector education and training authority)
requirements?
If you have marked the "no" column for two or more criteria, you might want to select another service
provider. This list of criteria is not exhaustive, and you are welcome to add other important criteria. Look at
the benefits of effective HRD provider evaluation. According to Govender (2009), effective HRD provider
evaluation should assist the HRD team to do the following:
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Lesson 02
• Report on the qualitative and quantitative impact of the respective learning interventions.
• Prepare cost-benefit analyses and collect information for return on investment (ROI) reports for each
learning intervention.
`• Build long-term partnerships with competent and efficient HRD service providers.
•002Develop and implement a monitoring and evaluation model to assist with monitoring and evaluation of
providers.
• Develop a database to track and report on learning and employee development in the organisation.
• Ensure accountability and compliance with national and international obligations as articulated in the
SDA and SDLA.
• Develop a framework for continuous improvement based on HRD strategies such as performance,
talent and diversity management in the organisation.
• Make sound HRD-related decisions that compare and balance time and cost versus results and
performance improvement.
• Develop an effective feedback loop to collect information from HRD providers and all stakeholder
groups.
• Draft realistic plans to achieve employee, departmental and organisational vision and strategic goals.
• Govern the HRD strategy, plan and processes effectively.
• Promote a culture of lifelong and continuous learning in the organisation (see lessons 005 and 006 for
more information on the learning organisation).
• Instil a culture of governance among all stakeholder groups and HRD providers.
Activity 2.5
• Evaluate the competency level of your HRD director, manager or team by
completing table 2.4.
• Review the information about people risks in section 2.4.3 and assess the status
of people risks in your organisation by answering the following questions:
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Lesson 02
TABLE 2.4: Competency levels of the HRD director, manager or team
Competency Yes No Reason
FOUNDATIONAL COMPETENCIES
` Interpersonal
002 Business
Personal
AREAS OF EXPERTISE
Performance improvement
Instructional design
Training delivery
Learning technologies
Evaluating learning impact
Managing learning programmes
Integrated talent management
Coaching
Knowledge management
Change management
• Assess the ability of the HRD director or manager in your organisation to function
as an HRD leader and HRD governor. Make three recommendations that would
allow the HRD director or manager to improve or develop in these roles.
• The HR team in your organisation does not evaluate the HRD providers that are
used for HRD interventions. Share five benefits of evaluating HRD providers with
the HRD team.
Feedback
Section 2.5.2 for the discussion of the four roles of the HR practitioner. You could have said something like
this:
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Lesson 02
In leading his/her team, the HRD director usually fulfils the role of HR manager and HR regulator. He/she
appears to be comfortable in these roles because he/she is not seen as a natural relationship builder in the
organisation. HRD directors should ensure that they understand their own strengths and development areas
and
` obtain support from external/internal coaches to assist them to devise ways to build relationships with
internal
002 clients.
See the bulleted list of factors in section 2.5.4. The list refers to the ways in which effective evaluation of
HRD providers should assist the HRD team. You could have listed any of these factors that are relevant to
your organisation.
Table 2.5 consists of several activities that HRD teams could implement in their teams and/or organisations
to establish a culture of governance in HRD. These proposed actions are divided into three categories,
namely the roles and competencies of the HRD manager, the HRD function and the strategic role in
governance. Add your own activities.
CATEGORY ACTIVITIES
• Build the capacity and competence of the HRD team to execute business and
HRD strategies.
• Champion the continuous development of directors (assist the organisation's
secretary), management and staff, and ensure compliance with SAQA/SETA
and other relevant skills development requirements and regulations.
• Act as a custodian of change and build organisational capabilities.
Roles and competencies of
the HRD manager • Demonstrate commitment to learning, sharing and development by forming a
partnership of mutual learning, growth and capacity building in the best interest
of the organisation.
• Conform to the ethical standards of professional bodies, both locally and
internationally, such as the South African Board for People Practices (SABPP)
and the ASTD.
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Lesson 02
• Implement processes to ensure that the HRD function complies with all the
relevant clauses of the King III and IV Reports and codes and other legal
requirements. Develop an HR governance framework for the organisation,
including decision-making and reporting lines for subsidiaries.
`
002 • Clarify the role and contribution of HRD to enhance the organisation's triple
bottom line.
• Keep accurate records and compile periodic HRD progress reports for inclusion
HRD function in sustainability and integrated reports.
• Design, develop and implement progressive dynamic HRD strategies and
interventions that contribute directly to sustainability, such as performance
management, mentoring, coaching, talent acquisition, development and
retention, and succession planning.
• Design, develop and apply appropriate evaluation criteria to evaluate the
success, effectiveness and quality of the products, services and interventions of
HRD providers.
Strategic role in governance • Provide input that will direct the organisation to adopt and live an ethical culture.
• Actively support the board and management to create an ethical corporate
culture.
• Identify all HRD stakeholders and develop a purposeful strategy for constructive
stakeholder engagement (e.g. employees, management, boards, unions and
SETAs).
• Conduct a proper HRD or people risk management study and formulate an HRD
risk management strategy to mitigate people risks.
• Design, develop and implement practical processes and plans to improve the
financial side of HRD by developing metrics and more sophisticated HR
measurements relating to the cost and benefit analyses pertaining to return on
investment of HR and HRD interventions.
ACTIVITY 2.6
Draft an action plan containing specific action steps that the HRD team in your
organisation could implement to ensure HRD governance. The action plan should
indicate at least two action steps per category, timeframes, people responsible and
resources required. To complete this activity, use the format of table 2.6 as an example
of an action plan.
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Lesson 02
` By when By whom
Action step Resources
002 (time-frames) (job title only)
By whom Resources
Action step By when
(job title only)
STRATEGIC ROLE IN
GOVERNANCE
By whom
Action step By when Resources
(job title only)
Feedback
HRD FUNCTION
Action step By when By whom Resources
1 Recordkeeping Ongoing Attendance
Learning
registers, facilitator
• Keep accurate records of all administrator
reports and learning
relevant HRD activities such and
intervention reports
facilitators
as learning interventions. should be submitted
after each learning
intervention.
Activity 2.7
Ethical behaviour is clearly also intrinsically important, as integrity and honesty filter through all levels
of the organisation. If the organisation is ethical, it is implicitly guarding its reputation against possible
attack.
23
Lesson 02
"Leadership must embrace these values, set an example and be ruthless when necessary", says
Coetzer.
Following
` the highly publicised Enron case in the United States, "whistleblowing" is becoming
recognised
002 as a valid component of a corporate governance policy. Richard Calland and Guy Dehn,
in Whistleblowing around the world, write that whistle-blowers "are essential to help ensure that public
and private power is exercised with an eye for the common good. In short, we can't live without whistle-
blowers. We all need people to speak up – and so we need to give them a safe alternative to silence."
Members of staff are usually the first to realise that there may be unlawful or irregular conduct on the
part of an employee or the organisation itself. However, they may experience a conflict between loyalty
and principle and may fear harassment or victimisation. This view is sometimes reinforced by the
negative connotations associated with whistleblowing. However, the immense harm that can be done
not only to the organisation but also to other employees and stakeholders by failing to disclose such
conduct has been demonstrated in several high-profile corporate collapses, such as Enron and
WorldCom in the United States, and closer to home, Regal and LeisureNet.
At the same time, regulating the disclosure of irregular conduct is essential to ensuring that the
reputation and public image of the organisation or character and reputation of individual employees
are not damaged through false testimony.
The Protected Disclosures Act of 2000 is intended to protect employees who raise issues of concern
and conscience confidentially inside the organisation. "At its heart lies a core deal", Calland and Dehn
write, "that in return for the whistle-blower making the disclosure internally first, the organisation will
take the message seriously and not harm the messenger". This approach rests on the idea that "when
whistles are blown externally first, unjustified harm can be done to the reputation of the organisation".
However, the few public bodies – and fewer corporates – that have implemented whistleblower policies
have tended to resort to anonymous, rather than confidential, disclosure using "hotline" call centres,
often outsourced, and without the required resources for investigation. This is unfortunate since it
sends out a message that management is not committed to the internal culture change required for
the policy to succeed. Coetzer, however, is hesitant about whistleblowing as a solution. "It's preferable
to go the internal audit route," she says. "Good procedures and policies should stop unethical
practices. Whistleblowing inevitably leads to poor morale."
QUESTION
As HRD director of Iziko Designs, you have been requested to write a report on whistleblowing. The
target group is the executive management team and the board. The purpose is to discuss the role of
whistleblowing in implementing corporate governance. The report should include the following
headings:
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Lesson 02
• The concept of whistleblowing
• The relevance and importance of a whistleblowing process in organisations
and Iziko Designs specifically
• The role of HR and HRD in whistleblowing in Iziko Designs
` • Three recommendations to develop and implement a whistleblowing process in
002 Iziko Designs
• Conclusion
Feedback
• Introduction, in which you explain the purpose and context of the report; for
example, to create awareness of the importance of implementing a whistleblowing
process in Iziko Designs.
• The role of HR and HRD in whistleblowing in Iziko Designs. In this section, you
could explain that HR and HRD could take the lead in consulting relevant
stakeholders to develop a whistleblowing process. This team should also create
awareness and obtain the buy-in from and commitment of all stakeholder groups
to apply the process in Iziko Designs.
2.7 CONCLUSION
In this lesson, we reviewed relevant aspects of HR and HRD governance and explored
` the roles of the HRD manager and team and what each role entails. Balancing the
002 different roles should assist the HRD manager and team in fulfilling their vital roles in
developing people and the organisation.
In the long term, the implementation of an HRD governance framework and related
actions should help HRD teams to elevate the HRD function in their organisations. This
lesson should enable HR and HRD teams to identify the challenges and weaknesses
in HR and HRD practices in organisations.
Furthermore, it should guide HR and HRD teams to design, develop and implement
relevant strategies and plans that will ensure good governance in HRD.
Reflect on your learning while working through this lesson and answer the following questions:
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Lesson 02
Feedback
Reflect on your learning while working through this lesson. Complete the following self-
assessment checklist by making a cross (X) in the relevant column to determine how well you
understood the content of this lesson and whether you have achieved the outcomes:
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Lesson 02
If you marked the "disagree" column for many or all the items in the checklist, you need to
review the lesson and/or consult your facilitator or lecturer. If your organisation has not yet
` implemented principles of corporate governance, you may want to make a presentation to
002 convince them to do so.
Feedback
The following are suggested sources for additional reading. Note that you do not have to buy these sources
and that they are not prescribed for examination purposes. You can read articles about, and reviews of the
books written by Jim Collins on the website. These books focus on leadership skills and traits that might
assist leaders in applying and implementing governance requirements in their organisations. Conduct your
own internet search.
2.11 REFERENCES
Govender, C. 2009. Evaluation of ETD providers. Presentation to the Institute of People Development
(IPD), November.
Heslop, B, Hilbron, D, Koob, J & Szumyk, R. 2005. Why HR governance matters: managing the HR
function for superior performance. Mercer Human Resource Consulting.
Institute of Directors. 2009a. King report on governance for South Africa 2009.
Institute of Directors. 2009b. The practice notes to King III. Available at www.iodsa.co.za.
Meyer, M. 2009a. Comments on the King III report and code on governance: HR – the way forward. HR
research initiative of the South African Board for People Practices (SABPP). SABPP opinion paper
2009/1.
Meyer, M. 2009b. Presentation on the Draft King III Report for the SABPP.
Meyer, M. 2010a. The King III report: implications for training. Paper presented at the ASTD SA
Conference, Drakensberg, 24–26 March.
Meyer, M. 2010b. The role of the HR practitioner in skills and training. Paper presented at the Skills
and Training Summit and Expo, Pretoria, 10 March.
Meyer, M., Orpen, M. & Rajaram, S. 2017. Occupationally Directed Education, Training and
Development (3rd ed.). South Africa: LexisNexis.
People are risks as well as assets. 2004. Human Capital Management: 108–110. Why HR
governance matters. 2005/2006. Human Capital Management: 26–28.
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Lesson 02
2.12 INTERNET RESOURCES/WEBSITES YOU MAY WANT TO CONSULT
Academy for Human Resource Development: www.ahrd.org
ASTD: http://www.ahrd.org/
`
002 ASTD Global Network South Africa: www.astd.co.za
International Society for Performance Improvement:
www.ispi.org ETD Online: www.etdonline.org
Education, Training and Development Practices SETA: http://www.etdpseta. org.za/
Grinningplanet: http://www.grinningplanet.com/5001/signup.htm
Human Capital Review: www.humancapitalreview.org
Institute of Directors: www.iod.co.za
Institute of People Management: www.ipm.co.za Society for Organizational Learning:
www.solonline.org South African Board for People Practices: www.sabpp.co.za Wikipedia:
http://en.wikipedia.org/wiki/Evaluation
2.13 E-RESERVES
Consult e-reserves for sources that may have been provided on this topic.
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Lesson 02
Well done! You have reached the end of both this lesson and this
` topic.
002 Take a well-deserved break!
Questions to ask your lecturer/facilitator and/or peers online about this lesson:
30