INTRODUCTION TO SPECIALISED BUSINESS MANAGEMENT

CHAPTER 12: HUMAN RESOURCES MANAGEMENT AND THE SA LABOUR

LEGISLATIVE FRAMEWORK
1. THE ROLE OF HUMAN RESOURCE MANAGER IN THE ORGANISATION:
The human resource function is a crucial element of organisational success. This section
considers certain aspects of human resource management in organisations, such as the role of
the human resource function, human resource management and organisational effectiveness.
It then looks at the person who performs the human resource function in organisations.
2. HUMAN RESOURCE MANAGEMENT AS A STRATEGIC PATNER:
• Improve the skills base of employees and contribute to the profitability of the organisation.
• Every manager in the organisation should realise the importance of recruiting, selecting,
training, developing, rewarding, assisting and motivating employees.
• Integration and teamwork are essential for organisational success.
3. HR MANAGEMENT & ORGANISATIONAL EFFECTIVENESS:
An effective organisation must have a vision, a mission and strategy, an organisational
structure and human resources. It is people in organisations who create the ideas and allow
organisations to prosper.
Even the most capital-intensive organisation needs people to run it. Studies have shown that
successful organisations all share the following human resource management attributes:
•Primary benefits – monetary benefits like pay, pension and share options.
•Secondary benefits and working conditions – non-monetary benefits like leave allowance,
flexible working conditions, input channels, innovation, recognition and the availability of
well-being policies.
•Training and development – the availability of function-related development initiatives and
programmes; how the employer helps you to grow in your role.
•Career development – includes long-term career path development, talent management,
succession planning and performance management; and
•Company culture and diversity – the combined efforts of the employer to establish a strong
company culture, i.e. social and networking opportunities, diversity initiatives, corporate
social responsibility programmes and employee input.
For organisations to be effective, top managers should treat human resources as the key
element of effectiveness. The contribution of human resources to organisational effectiveness
includes the following:
•Assisting everybody in the organisation to reach stated goals.
•Making efficient use of the skills and abilities of the human resource planning.
•Providing the organisation with well-trained and motivated employees.

Page 1 of 16
•Assisting in the attainment of the employees’ job satisfaction and self-actualisation.
•Developing a quality of work life that makes employment in the organisation desirable.
•Assisting with the maintenance of ethical policies and socially responsible behaviour;
•Managing change to the mutual advantage of individuals, groups, the organisation and the
public.
•Executing human resource functional activities in a professional manner; and
•Being involved in strategic decision-making and strategy formulation of the organisation.
4. WHO PERFORMS THE HUMAN RESOURCE FUNCTION:
In large organisations, the human resource function is mainly co-ordinated by the human
resource department. In smaller organisations that do not have human resource departments,
the main human resource functions are performed by line managers, over and above their
normal duties. As the organisation grows and increases in size, the line manager’s job is
divided up, and some aspects, such as recruitment and selection, become more specialised.
These duties are then dealt with by a human resource manager or practitioner.
5. HUMAN RESOURCE PLANNING:
Human resource planning is the process of using an organisation’s goals and strategy to
forecast the organisation’s human resource needs in terms of finding, developing and keeping
qualified human resources (see Figure 12.1). Human resource planning can be divided into
three phases, which is discussed below.

PHASE 1: IDENTIFY THE WORK REQUIRED BY THE ORGANISATION:

Work in organisations is done by employees who are appointed to specific positions (jobs)
with the purpose of executing those tasks associated with that position. To identify a position
in an organisation, a job analysis process is followed, which generates two outcomes: a job
description and a job specification.
Job analysis: Refers to the component of both job description and job specification.
Job analysis is the process by which management systematically investigates the tasks, duties
and responsibilities of a job within an organisation.
The following questions might be asked when undertaking a job analysis:

Page 2 of 16
•What is the employee responsible for?
•Which tasks are performed?
•Which decisions are made?
•What information is needed to enable the work to be done?
•Under which conditions is the job performed?
There are various ways in which this information can be collected. One method is
observation by a qualified job analyst. The job analyst observes the employee working and
records all the relevant information. Observation may also include videotaping, audiotaping
and electronic monitoring. This method is especially suited to manual labour, where it is easy
to see exactly what the employee is doing. However, administrative work is more difficult to
observe.
Job description refers to the duties and responsibilities that the employee is expected to do.
Job specification refers to the qualifications and experience needed for the job.
PHASE 2: HUMAN RESOURCE FORECASTING:
The purpose of human resource forecasting is to balance human resource supply and human
resource demand. Demand is affected by business objectives because these objectives
determine the number of people needed to attain them. Supply is affected by the human
resource programmes providing the human resources.
The following factors should be considered during forecasting:
•Economic growth. This involves forecasting the expected growth (or shrinkage) of the
business in view of probable economic developments. For example, will there be a recession
or growth in the near or distant future?
•New developments in the business. These include planned physical extensions, the
establishment of new branches and technological changes (especially those that will affect
staff, for computerised machinery might create a greater need for technically skilled
employees).
•The labour market. Important questions in this regard include: Are there sufficient
opportunities in the labour market, or is there a high level of unemployment? What will be
the nature and scope of labour turnover in the future? Will there be a shortage of a certain
type of skilled employee? Will employees be readily available?
PHASE 3: THE HUMAN RESOURCE PLAN:
Using the information obtained thus far, the HR manager can compile a human resource plan,
the final step in the process. The purpose of this plan is to provide concrete guidelines and
steps that indicate how the business’s short-, medium- and long-term human resource
requirements can be provided for. In other words, it answers the question: What must we do
today to be prepared for tomorrow?
6. FINDING QUALIFIED TALENT:

Page 3 of 16
INTERNAL RECRUITMENT
• Refers to the use of internal sources to advertise vacancies inside the business. The
following SOURCES of internal recruitment can be used:
Sources of Internal recruitment
• Internal e-mails/Intranet/web sites to staff
• Word of mouth
• Business newsletter/circulars
• Internal/management referrals
• Notice board of the business
IMPACT OF INTERNAL RECRUITMENT
Positives/Advantages
• Cheaper/Quicker to fill the post.
• Placement is easy, as management knows the employees' skills/personality/
experience/strengths.
• Provides opportunities for career paths within the business.
• The employee already understands how the business operates. / Induction/Training is not
always necessary.
Negative/Disadvantages
• The promotion of an employee could cause resentment among other employees.
• The number of applicants from which to choose is limited to existing staff only.
• It is possible to promote certain employees who do not really have the required skills for the
new job.
EXTERNAL RECRUITMENT
• Refers to the use of external sources to advertise vacancies outside the business. The
following SOURCES of external recruitment can be used:
Sources of external recruitment
• Recruitment agencies
• Billboards
• Printed media, e.g. newspapers/flyers
• Electronic media, e.g. radio/TV
• Social media/Social networks/Internet/Business websites
• Recruitment agencies

Page 4 of 16
IMPACT OF EXTERNAL RECRUITMENT
Positives/Advantages
• New candidates bring new talents/ideas/experiences/skills into the business.
• There is a larger pool of candidates to choose from.
• There is a better chance of getting a suitable candidate with the required
skills/qualifications/competencies who do not need much training/ development which reduce
costs.
Negatives/Disadvantages
• External sources can be expensive, e.g. recruitment agencies' fees/advertisements in
newspapers/magazines.
• The selection process may not be effective, and an incompetent candidate may be chosen.
• Information on CV's/referees may not be reliable.
• Recruitment process takes longer/is more expensive as background checks must be
conducted.
RECRUITMENT PROCEDURE:
If a business recruits from inside, the HR manager must ensure that an efficient human
resource record system exists. Such a record system, which is now available in a
computerised form known as a human resource information system (HRIS), should contain
information on each employee’s qualifications, training and experience, as well as an
assessment of achievements and interests. This information from HRIS also includes the
candidates’ readiness for the job, which may also be assessed through the organisation’s
HRIS and talent data. When a job becomes vacant, the HR manager should be able to identify
the most suitable candidates.
RECRUITMENT METHODS:
- Recruitment through advertisements.
- Recruitment through private employment\ recruitment agencies.
- Recruitment through existing employees.
- Recruitment through personal approach.
- Recruitment through radio, TV and the internet recruiting (e-recruiting).
•Some of the benefits or advantages of the e-recruitment process are listed below:
»E-recruitment involves a shorter recruiting cycle time, improving HR’s efficiency in the
recruiting process.
»It attracts passive job seekers.
»It is not limited to local candidates but provides wider –even global – coverage.
»It may address targeted labour market niches.

Page 5 of 16
 »It reaches a wider range of applicants, broadening the selection pool. »It results in lower
hiring costs.
»It makes it easier to apply for job.
•E-recruitment is where various social media are used to reach the talent that is required.
Social media provides a captive audience for recruitment, thus allowing the employer the
opportunity to reach the required talent.
Disadvantages of using e-recruitment are as follows:
»It attracts a huge volume of unqualified candidates.
»It can result in outdated resumes.
»E-recruitment tools may not be user-friendly.
»There is a lack of personal engagement and relationship between the candidate and the
organisation.
•Sundry recruiting strategies:
Businesses often use visits to schools and universities to draw students’ attention to
employment opportunities. The intention is not so much to recruit for specific jobs, but with
long-term objectives in mind. The allocation of study bursaries with a compulsory period of
service linked to them is another method of drawing candidates with high academic potential.
7. TALENT SELECTION:
Selection is the process of determining which individuals are best suited to fill positions in
the organisation, considering individual differences, the requirements of the job, and the
organisation’s internal and external environments.
The selection process to be used for senior management posts can be divided into the
following three phases:
1.Preliminary screening.
2.Intensive assessment.
3.Final selection.

Page 6 of 16
1. Preliminary screening:
The most efficient method for separating undesirable candidates from potential applicants is
to compare the application with the job specification (Phase 2 in Figure 12.2).
2. Intensive assessment:
Intensive assessment basically involves two steps: psychological testing and diagnostic
interviewing.
•Psychological testing can provide valuable information about an applicant. Tests usually
involve a measurement of the applicant’s personality, abilities and management skills (Phase
2 in Figure 12.2). An important aspect here is to ensure that the tests used are not culturally
biased, as mentioned earlier. Some HR managers have the qualifications required for doing
testing themselves, while others have the testing done by professionals.
•A diagnostic interview is used to obtain information that was not highlighted in the tests or
on the application form (Phase 3 in Figure 12.2). A good interviewer looks for certain
characteristics by asking specific questions about the applicant’s past performance.
3. Final selection:

Page 7 of 16
At the stage of final selection, there is usually enough information available about the
applicants to compile a shortlist of approximately three persons.
4. On-boarding:
Once the job offer has been accepted, the new employee must report for duty as soon as
agreed on between the employer and the candidate. With the placement of the person in the
job, several outstanding matters can be finalised.
The new employee must go through a process of on-boarding (also known as induction,
orientation or socialisation). On-boarding is the process of introducing the employee to the
organisation and to make him or her familiar with the details and requirements of the position
(see BASF onboarding initiatives).
Developing talent: Human resource development (HRD)
• The HR manager has the dual responsibility of ensuring that the company employs
sufficient staff and of creating opportunities for employees to make themselves more valuable
to the company.
• This activity can be subdivided in several ways, but a good method is to distinguish firstly
between training and development, and secondly between technical training and management
training.
• HRD activities should begin when an employee joins an organisation during the onboarding
process and continues throughout their career, regardless of whether that employee is an
executive or a worker on an assembly line.
• HRD programmes must respond to job changes, and must integrate the long-term plans and
strategies of the organisation to ensure the efficient and effective use of resources

JOB ROTATION: Job rotation is when a staff member is moved to a new job as a means of
enriching and stretching the staff member, provided the staff member knows the current job
well.

Page 8 of 16
JOB SHADOWING: Job shadowing is a type of on-the-job employee training. It is an
intervention that supports an employee who desires to become familiar with a job. This
occurs by means of following and observing a trained, knowledgeable and experienced
employee in the field.
ENLARGED AND ENRICHED JOB RESPONSIBILITIES: By increasing the
employee’s duties, responsibilities and autonomy, the organisation will allow the employee to
learn more about the job, department and organisation.
JOB INSTRUCTION TRAINING: Job instruction training (JIT) is a series of steps that
supervisors follow when training their employees. JIT is simple to use and applies a
common-sense approach, so it remains a popular tool for many modern trainers. The simple
steps in JIT are preparation, presentation, performance try-out and follow-up.
COACHING: Development in the organisation can also occur through coaching by the
employee’s immediate supervisor.
MENTORING: Mentoring is a developmental partnership through which one person shares
knowledge, skills, information and perspective to foster the personal and professional growth
of someone else.
APPRENTINCESHIPS & INTERNSHIP: Apprenticeships and internships are formal
development, because the employee receives a formal qualification after completion.
LECTURES: The lecture is the second most popular away-from-the-job training and
development technique, because an education, training and development (ETD) practitioner
can provide information to a large group of people in a timely manner.
CONFERENCES OR DISCUSSIONS: Discussing problems and critical issues in a
conference or discussion format permits a dialogue between the trainer and the trainee, as
well as among the trainees.
SEMINARS: A seminar is presented by an outside institution – for example, a consultant or
professional institution. Such courses are normally attended by a variety of employees from
various companies.
A VESTIBULE OR SIMULATION: A vestibule or simulation is created to resemble the
employee’s actual work area and is performed with the aid of an instructor who demonstrates
on the same kind of machine and uses processes the trainee will use on the job.
E-LEARNING: E-learning refers to web-based learning, virtual classrooms, computerised
learning modules, interactive TV, satellite broadcasts, and other such technology.
CASE STUDIES: A case study is a written description of an organisational problem and
requires participants to identify and analyse specific problems, develop alternative courses of
action and recommend the best alternative.
ROLE PLAYING: During role playing, the participants play the roles of those involved in
an organisational problem. There are no scripts and participants have limited information on
which to base their roles. The goals of role-playing are to analyse interpersonal problems and
develop human relations skills.

Page 9 of 16
IN-BASKET EXERCISE AND ASSESSMENT CENTRE: In-basket exercises are
designed to develop the analytical and problem-solving skills of lower-level managers. The
assessment centre is a technique that requires managers to participate in activities designed to
identify their job-related strengths and weaknesses. It is used as a device to develop and
select new managers.
8. The danger of the ‘shotgun’ approach to development
• Indiscriminate approach to development → organisations do not take time to conduct a
training needs analysis
• The successful HR manager attempts to obtain as much value as possible from development
programmes:
1. They make a thorough analysis of the development needs that exist.
2. They ensure that training money is spent only on members of staff who show a potential
for further development.
3. They make plans with the immediate superior of the employee concerned to utilise their
new skills or insight in the work situation.
9. Performance appraisal
• The purpose of a performance appraisal is to determine how the employee has done in the
following aspects:

Performed exceptionally well (that is, surpassed the requirements for the job)
Complied with the requirements for the job

Not complied with the requirements for the job.

• The more objective this appraisal is, the more successful it is likely to be.
• The results of a performance appraisal can be used for four basic purposes:
To provide a basis for financial rewards (performance bonuses)
To determine whether the employee should be promoted to a higher level of work

To provide the employee with feedback on how well they are doing
To determine areas for training and development.
10. RETAINING TALENT:
Compensation refers not only to extrinsic rewards (such as salary and benefits) but also to
intrinsic rewards (such as achieving personal goals and more challenging job opportunities).
Here are some important points to note when drawing up a compensation policy:
1. A decision must be made about how the company’s compensation in general should
compare with that of the labour market.
2. A policy must be determined on a cost-of-living adjustment.

Page 10 of 16
3. The compensation policy must determine which form rewards will take. Most companies
reward by means of salary increases. Other companies, however, only give salary increases in
accordance with the rise in the cost of living, and then give cash bonuses to reward good
work performance.

11. MOTIVATING EMPLOYEES:

Motivation in the workplace: A basic understanding Employee performance in organisations
is mainly determined by three things: a desire to do the job (motivation), the capability to do
the job (ability) and the resources to do the job (work environment).
Motivation refers to those forces within a person that affect his or her direction, intensity and
persistence of behaviour that is within the control of the person. A motivated employee is
willing to exert a particular level of effort (intensity) for a certain amount of time
(persistence) towards a particular goal (direction).
To distinguish between the different approaches to motivation, the theories can be classified
in terms of content approaches versus process approaches:
•Content approaches try to determine those things that motivate people to do their jobs, or
the ‘what’ of motivation. These theories focus on the factors within a person that direct,
energise, maintain or stop behaviour, and are therefore also known as need theories.
Consequently, these theories try to identify employees’ needs and the goals they want to
attain to satisfy these needs.
•Process theories, in contrast, try to explain the actual process, or the ‘how’ of motivation.
According to the process theories, employees have a cognitive decision-making role in
selecting their goals and the means to achieve them. These approaches are therefore
concerned with trying to establish how employee behaviour is energised, directed, maintained
and stopped.

Page 11 of 16
Page 12 of 16
Labour legislation that has an impact on the workplace:
The Labour Relations Act (No. 66 of 1995) (LRA)
• Freedom of association
• Organisational rights
• Bargaining and statutory councils
• The Commission for Conciliation, Mediation and Arbitration (the CCMA)
• The Labour Court and the Labour Appeal Court
• Strikes and lockouts
• Collective agreements
• Agency shop agreements and closed shop agreements
• Workplace forums
• Unfair dismissals
Communication: grievances and disciplinary aspects
An effective grievance-handling procedure has many advantages:
• It is a safety valve that will release the tension and dissipate the latent aggression inherent in
all businesses.
• It allows the raising and settlement of a grievance by a worker without fear of retribution or
victimisation.
• It makes for an open and honest relationship between manager and worker.
The disciplinary procedure

Page 13 of 16
The principles underlying the disciplinary procedure are as follows:
• The employer’s right to take disciplinary action against an employee who breaches a rule or
standard governing conduct in the workplace.
• The employee’s right to a fair procedure.
The Basic Conditions of Employment Act (No. 75 of 1997) (BCEA)
• Introduction and application
• Working time
• Leave
• Remuneration, deductions and notice of termination
• Administrative obligations
• Prohibition of the employment of children and forced labour
• Variation of basic conditions of employment
• Employment Conditions Commission and inspectors.
The Employment Equity Act (No. 55 of 1998) (EEA)
• The prohibition of unfair discrimination, which applies to all employers
• Affirmative-action measures, which apply only to ‘designated’ employers
The most important provisions of the Act are as follows:
• Employers are required to take steps to end unfair discrimination in their employment
policies and practices
• Discrimination against employees or job applicants
• Medical and psychometric testing of employees is prohibited unless properly justified
• Employers must prepare and implement employment equity plans after conducting a human
resource planning analysis and consulting with unions and employees.
The Skills Development Act (No. 97 of 1998) (SDA)
• Develop the skills of South African human resource planning
• Use the workplace as an active learning environment, to provide employees with the
opportunities to acquire new skills and to provide opportunities for new entrants to the labour
market to gain work experience
• Improve the employment prospects of persons previously disadvantaged by unfair
discrimination, and to redress those disadvantages through training and education
• Ensure the quality of education and training in and for the workplace
• Help work seekers to find work, retrenched workers to re-enter the labour market and
employers to find qualified employees

Page 14 of 16
The Skills Development Levies Act (No. 9 of 1999)
• Levy to be paid
• Payment of levy to Commissioner and refund
• Exemptions from the Act
The National Qualifications Framework Act (No. 67 of 2008) (NQF)
• The verification of all qualifications or part–qualifications by the SAQA • The formulation
of criteria for evaluating foreign qualifications
• The establishment and maintenance of separate registers of misrepresented or fraudulent
qualifications
• Separate register for professional designations
The Occupational Health and Safety Act (No. 85 of 1) (OHSA)
• According to this Act, employers have the following general duties to their employees:
• To provide and maintain a working environment that is safe and without risk to the health of
employees
• To take whichever steps are necessary to eliminate any hazard or potential hazard to the
safety or health of employees
• To provide any information, instructions, training and supervision as may be necessary to
ensure the health and safety of all employees
The Compensation for Occupational Injuries and Diseases Act (No. 130 of 1993)
• Employers must register and furnish the Commissioner with details about their businesses.
They must keep records of all employees, wages paid, and time worked for a period of four
years.
The record must be sent to the Commissioner each year.
The Unemployment Insurance Act (No. 63 of 2001) (UIA)
• Contributors who lose their jobs are entitled (as are their dependants) to these benefits:
• Unemployment benefits
• Illness benefits
• Maternity or adoption benefits
• Dependant’s benefits.
The Employment Services Act (No. 4 of 2014)
• Provides for public employment services that will play an active role in employment
promotion to tackle high levels of unemployment.
The Protection of Personal Information Act (No. 4 of 2013)53 (POPIA)

Page 15 of 16
• The Act aims to promote the protection of personal information by private and public bodies
and to provide for minimum conditions that should be followed in the lawful processing of
information.

Page 16 of 16