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Lesson 02 Presentation For hrd4801

The document discusses HRD governance and its importance for organizations. It outlines challenges organizations face like skill shortages and disengaged employees. It then discusses the key elements of governance in the King Report and how they relate to HR and HRD functions, including leadership development, risk management, stakeholder relationships, and compliance.

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kayla buchner
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33 views

Lesson 02 Presentation For hrd4801

The document discusses HRD governance and its importance for organizations. It outlines challenges organizations face like skill shortages and disengaged employees. It then discusses the key elements of governance in the King Report and how they relate to HR and HRD functions, including leadership development, risk management, stakeholder relationships, and compliance.

Uploaded by

kayla buchner
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Lesson 002

Open Rubric
What is HRD Governance and why is it
relevant?
• In HR / HRD organisations are faced with:
• Scarce skills (skill shortages)
• Scarce resources
• Stressed and disengaged employees
• Low morale
• HR and HRD functions are blamed for this. WHY?
• There is something missing or something they are not doing right.
• This in turn affects the Business, Service delivery and the bottom-line
• This is why HRD governance is necessary.
• HRD governance focuses on the balance between the need for
performance and the requirement for organisations to comply with the
Skills Development and SAQA legislation. (See page 34)
• The elements of the King Report assist organisations to do this.
Conceptualisation of HRD Governance
• HRD Governance refers to how the organisation is
• Led
• Controlled and
• Directed in order to promote sound corporate governance and optimise the
triple bottom-line
• HOW?
• By developing people in order to achieve
• Economic
• Social and
• Environmental Sustainability
Elements of Governance in the King IV
report and how they link to HR & HRD
• 1. Orientation and development of leaders, board members and
directors.
• Formal orientation
• Mentoring
• Continuous professional development of new leaders, board members and
directors.
• Technical knowledge should be supplemented with specialist knowledge and skills
Elements of Governance in the King IV
report and how they link to HR & HRD
continued

• 2. Recruitment and Selection of leaders, board members and


directors
• There should be a formal and transparent process in place informing the
appointment of new leaders, members of the board and directors.
Elements of Governance in the King IV
report and how they link to HR & HRD
continued
• 3. Remuneration of leaders, board members and directors
• Board remuneration committees should be formed and comprise of capable
people
• Remuneration packages of leaders should be standardised
Elements of Governance in the King IV
report and how they link to HR & HRD
continued
• 4. Ethical leadership and corporate citizenship
• NB! Ethics at board, management and staff level
• An ethical culture needs to be cultivated
• HR and HRD teams need to cultivate this culture
Elements of Governance in the King IV
report and how they link to HR & HRD
continued
• 5. Governance of risks – Human Capital
• HR should conduct a comprehensive people risk analysis
• Examples of people risks Meyer (2010b:26):
• Poor employee performance
• Excessive absenteeism
• Low morale
• Unethical behaviour
Elements of Governance in the King IV
report and how they link to HR & HRD
continued
People Risk Rating (Low, Moderate or
High)
Reason
Poor employee performance High • No Performance plans in place
• Employees do not know what is
expected of them
• Lack of skills development
Elements of Governance in the King IV
report and how they link to HR & HRD
continued
• 6. Governance of risk
• HRD can assist in succession planning
• Assist the organisation to find the right people for important leadership
positions
• Criteria should be in place
• Competencies identified through a competency analysis process.
• What does your organisation do to make sure of this?
Elements of Governance in the King IV
report and how they link to HR & HRD
continued
• 7. Integrated reporting and disclosure
• CSR (Corporate Social Responsibility )
• HR teams should report on the HR practices associated with:
• Diversity
• What are the HR practices adopted by organisations in order to ensure they create a
diverse workforce?
Elements of Governance in the King IV
report and how they link to HR & HRD
continued
• 8. Governing stakeholder relationships
• The HR team is responsible for the management of stakeholder
relationships
• Ensuring to develop a stakeholder-inclusive approach
Corporate Governance, Stakeholder
Management and Integrated reporting
Rational Level Process Level Transactional Level

• Identify stakeholder • Manage stakeholder • Interaction with


interests interests stakeholders
• Identify and classify • How can the “we” • Eg: Wage
stakeholders, create value for our negotiations, focus
interests and various stakeholders? groups etc
expectations • Policies,
• Primary and governance
Secondary structures - to
stakeholders inform how…
Elements of Governance in the King IV
report and how they link to HR & HRD
continued
• 9. Compliance with laws, rules, codes and standards as well as
governance of risk:
• HR should have mechanism in place in order to manage these and be in a
position to produce a report on how HRD is compliant with the law and how
operational risks are managed.

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