LEARNING UNIT 6 - HR

The centre of your universe

your staff
LABOUR LEGISLATION IN SA 237
• What is the Highest Law in the land ?
• Then
• BCEA – what does this stand for ? 1997
• Then Labour Relations Act 1995
• Employment Equity Act 1998
• Promotion of Equity and Prevention of Unfair
Discrimination Act 2000
• Broad Based Economic Empowerment
Amendment Act 2013
MORE RULES
• Skills Development Act 1998
• Skills Development Levies Act 1999
• National Qualifications Framework 2008
• Occupational Health and Safety Act
1993
• Compensation for Occupational Injuries
and Diseases Act 1993
The role of HR management in
the organisation page 241
• The factor that separates top-performing
companies from others is the way they treat
their workforce
• The process of finding, developing and
keeping the right people to form a qualified
workforce is one of the most difficult and
important tasks of management (within the
SA legislative framework)
The HR function
• Strategic partner working along with other
functional areas
• Labour productivity – improve this
• Improve skills base of employees
• Legal environment – accountability
• Importance of recruiting, selecting, training,
developing, rewarding, assisting and
motivating employees
• Integration and teamwork
• Job satisfaction
 The role of HR management in the
organisation
• HR is a crucial element in organisational
success
– Role of the human resource function – a strategic
partner in the business. Improving the skills base
and increasing profitability in line with the entire
corporate strategy.
– HR is a strategic partner
– Human resource management must be VERY
aware of the legal implications of bad decisions
– HR’s vital role in SA is to improve the skills base
of employees as well as the productivity
 TOP TEN MOST PRODUCTIVE COUNTRIES IN THE
WORLD
1. Switzerland
2. Singapore
3. United States
4. Germany
5. Netherlands
6. Japan
7. Hong Kong
8. Finland
9. Sweden
10. United Kingdom
53. South Africa !!!!
 The role of HR management in the
organisation page 242
Organisational effectiveness – successful
organisations share the following HR management
attributes
–Primary benefits – monetary benefits like pay, pension
and share options
–Secondary benefits and working conditions– non-
monetary benefits like, leave, flexible hours, recognition,
innovation
–Training and development – availability of training and
growth initiatives
–Career Development – career path and development.
Performance management/appraisals
–A strong Company culture –networking, CSR, diversity
HR management and
organisational effectiveness
• Contribution of HR to organisational
effectiveness should include:
– Assisting everybody to reach goals
– Efficient use of skills and abilities
– Training and motivating employees
– Job satisfaction and self-actualisation
– Desirable quality of working life
– Maintaining ethical policies and socially responsible
behaviour
– Managing change to advantage of individuals and
public
– Executing HR functions in professional manner.
 STEPS IN HR PLANNING page 243

• STEP 1: IDENTIFY WORK CURRENTLY

BEING DONE - Job analysis and
description
• STEP 2: IDENTIFY THE TYPE OF
EMPLOYEE NEEDED TO DO THE WORK –
job specification
• STEP 3: IDENTIFY THE NUMBER OF
EMPLOYEES NEEDED IN THE FUTURE -
HR forecasting
 HR planning page 243
Divided into three specific steps:
• Step 1: Job analysis and job description
• Step 2: Job specification
• Step 3: Human resource forecasting and
planning
• Human resource forecasting
– Economic growth in country
– New developments in the business
– The labour market - availability
• The human resource plan
HR planning
• Job analysis
– Process used to investigate the tasks, duties and
responsibilities of a job in an organisation
• Job description
– Written format listing contents of the job. Summary
of the job, brief description of the main tasks,
description of the kind of decisions that need to be
made.
• Job specification
– Details the knowledge, skills and abilities relevant
to the job. Includes education, experience, training,
personal traits, manual dexterity
HR planning page 245
• Human resource forecasting – important factors as
balances the supply with the demand of human
resources.
– Economic growth – in the economy and the business
and globally
– New developments in the business – physical and
technological changes eg new branches open
– The labour market – shortage of skills etc
• The human resource plan
– Purpose is to provide concrete guidelines and steps to
provide for business’s short-, medium- and long-term
human resource requirements. Page 308 details HR
plan
 ACTIVITY
• Write a Job Description for a person
responsible for collecting money from all
the companies customers

• Remember - Summary of the job, brief

description of the main tasks,
description of the kind of decisions that
need to be made
• SESSION 2
 Finding qualified workers page 247
• Recruiting – ensure that a sufficient number of applicants apply
for a job as and when required
• Recruitment from inside – promotion
– Career planning possible internally, assessment of applicants
easier, cost of recruitment lower
– Disadvantages – no new ideas come into the business, personal
competition
• Recruitment from outside - advantages
– Actively look for the correct candidate – right person for the right
job
– Bring in new ideas and approaches
– Cost of recruiting outside high – 10% annual wage
– Risky
– Impact morale of existing employees
Finding qualified workers 249
• The recruitment procedure
• The “new” labour market and SA challenges
• Recruiting techniques:
– Recruitment through advertisements – the most
common way, high cost. Neutral wording
– Recruitment through private employment/recruitment
agencies – expensive (10% of annual salary)
– Recruitment through existing employees – makes
existing staff positive as will get others to apply.
– Recruitment though personal approach – head-
hunting. Poach staff from another company
Finding qualified workers
• The recruitment procedure
• Recruiting techniques:
– Recruitment through radio, TV and the internet –
E-recruiting changed this all. Gumtree, OLX etc

– Sundry recruiting strategies – from schools,

universities. Bursaries for long term “catch”
 SELECTION page 252
• Determine which individuals are the best suited for
the position
• Three phases in the process
1. Preliminary Screening
2. Intensive Assessment
3. Final Selection
Then finally placement and induction

The Labour relations Act states that no question may be

discriminatory, eg are you married, divorced or single.
 Selection – who is the best candidate
• Preliminary screening – separate undesirables from
desirables on first sweep. A great deal of information can be
included in the application form. This is also sometimes done
via Skype etc

• Intensive assessment
– Psychological testing – personality, abilities and
management skills
– Diagnostic interview – fills in the gaps left by the tests and
application form. A good interviewer will glean an
enormous amount from a face to face interview. Questions
about religion, sexual preference are not allowed
Medical assessment can be done as long as not
discriminatory
 Selection – who is the best candidate
• Final selection – a shortlist of applicants drawn up (max 3
persons)
References MUST be contacted
A final interview must take place and be
recorded. Strengths and weaknesses
compared.
Offer the person the job

• Placement and induction – Induction speeds up the settling-in

process socially and work wise. Induction saves money in the
long run as productivity improves rapidly

• Final step is TRAINING – skills, knowledge and abilities

provided
Induction 259
• Why is this important ?
• The Induction process
 Developing qualified workers page 261
• Human resources development (HRD)
• Training – providing knowledge and skills needed
to do a particular task
• Development – long-term focus on preparation for
future work responsibilities
HR development is a set of systematic and planned
activities designed by an organisation to provide its
members with opportunities to learn necessary
skills to meet current and future job demands.
• Technical (physical job/non-management) versus
management training (PLOC)
Developing qualified workers
• Development methods:
–Away-from-the-job training and development.
Lecture
Conference
Seminar he
t
Simulation o i d un
Av ot G h –
Sh roac tion
E-Training
Case study p p olu
A e s all
Role Play On Fits
In-basket training – solving problems that arise in your
“in-basket”
 Developing qualified workers page 261
• Development methods:
– On-the-job training and development. Job
instructions given by employee’s supervisor or
experience co-worker.
 Job Rotation – moving from 1 job to another
 Enlarged and enriched job responsibilities – increasing
duties and responsibilities
 Job Instruction Training – JIT – supervisors train their
employees
 Coaching by immediate supervisor. (delegation)
 Mentoring – senior provides guidance to a junior
 Apprenticeship – formal development processes.
Receive a qualification on completion.
 Developing qualified workers
• A performance appraisal = performance
evaluation=performance review
• Performance appraisal - purpose is to determine if
 Employee performed exceptionally well
 Complied with the requirements
 Employee did not comply with the requirements
 The appraisal must be OBJECTIVE
 Try and measure the results
 Attitude, enthusiasm, initiate and neatness are all
subjective
 Performance Appraisals 265
• Comparison with other employees is totally
negative as the risk of prejudice is HUGE
• 360 degree system – feedback from colleagues
and managers is used
• PA are used for
– Basis for financial rewards
– Promotions
– Feedback – this must be focused on behaviour
not the person, timely, concise and specific.
Limited to behaviours the employee can control
Keeping qualified workers 269
• Compensation of employees
Extrinsic – salary and benefits
Intrinsic – achieving personal goals, facing challenges
• Will the company be a leader, follower or
average payer in the Market ?

• What can the company afford ?

• Compensation consultants used to

determine salary levels? Eg 21st Centaury
Keeping qualified workers
• Types of compensation
– Direct compensation-the basic salary or wage received.
Non productive and productive staff earn the same. (piece-
wage system)
• Salary – paid monthly, wage paid weekly.
• Piece-wage – paid per unit produced

– Indirect compensation – fringe benefits – leave, medical

aid, pension, housing benefits, car, study. Often linked to
status level

– Reward – in recognition of good work/performance Bonus

– a right or a reward ?
Salary increase, cost-of-living adjustment, paid holiday,
merit increase.
Keeping qualified workers
• The amount of compensation to be paid is
determined by:-
– External comparison (salary survey) – compare
apples with apples – don’t use job title.
– Internal comparison (job evaluation) – demands
made on the person in his/her position eg senior
accountant versus a clerk. Job evaluation used for this
– Factor-comparison – jobs compared according to the
demand for knowledge, skills, responsibility, decision-
making
Job description used to do this.
Gives no indication of level of productivity
TEN PRACTISES
• ..\VIDEO DOWNLOADS\Ten Best Practi
ce HR Tips - Human Rescource Best Pr
actise _ MeetTheBoss.mp4
 HR RESOURCE RELATIONS 273
• HR relations is the relationship between the state,
employers and employees.
• HR is a 3 way relationship.
• Collective agreements between these 3 are legally
enforceable
• Employees represented by Labour Unions
• ‘Closed Shop agreements’ covers all members of a
particular trade union
• Agency Shop agreements’ agreement between one
or more unions
 SA LABOUR UNIONS 275
• A trade union is a formal association of employees
that promotes the interests of its members through
collective actions.
• Job security, working conditions, workplace
restructuring, retrenchments, salaries and benefits.
• Workers have a right to collective bargaining and
striking.
• Name some SA Trade Unions
• A shop steward can represent the Trade Union in a
large business
GET INTO 2’S
• Conduct and interview with the person
opposite you for the job of Front Office
assistant in a busy Gym in PE
• Would you employ the person or not ?
Summary
• Activities associated with the HR function of
organisation
• Recruitment and selection of talent, HR
planning and job analysis
• Importance of motivation and ways to
motivate
• Legal environment that influences HR
managers and organisation
• Overview of labour laws that managers and
HR practitioners need to implement
 GUEST SPEAKER FROM
INVESTEC

TRACY VAN GOEVERDEN

THANK YOU FOR JOINING US TODAY
HR Consultant for Investec Specialist Bank in the
Eastern Cape