DRAFT NATIONAL HRM SYSTEM STANDARD 2013

Transcription

1 DRAFT NATIONAL HRM SYSTEM STANDARD 2013 CLOSING DATE FOR COMMENTS: 10 JULY 2013 SABPP 2013 Draft HR Management System Standards for South Africa 1

2 TABLE OF CONTENTS PAGE HR MANAGEMENT SYSTEM STANDARD MODEL FOR SOUTH AFRICA 3 1 Preface Moving HR forward in a changing world of work 4 SECTION Introduction 5 3 Acknowledgements 6 4 Benefits of using standards 7 SECTION 2 5 Standards scope 9 6 Corporate governance 9 7 International standards compatibility 9 SECTION 3 8 Principles of Implementing a HR Management System Standard 12 9 Objectives of a HR Management System Standard Continuous improvement 12 SECTION 4 11 Roles and responsibilities 14 SECTION 5 NATIONAL HR SYSTEM STANDARD 1 Standard element 1: Strategic HR Management 15 2 Standard element 2: Talent Management 17 3 Standard element 3: HR Risk Management 19 4 Standard element 4: Workforce Planning 21 5 Standard element 5: Learning & Development 22 6 Standard element 6: Performance Management 25 7 Standard element 7: Reward 27 8 Standard element 8: Employee Wellness 29 9 Standard element 9: Employment Relations Management Standard element 10: Organisation Development Standard element 11: HR Service Delivery Standard element 12: HR Technology Standard element 13: HR Measurement 39 CONCLUSION 41 SABPP 2013 HR MANAGEMENT SYSTEM STANDARDS MODEL FOR SOUTH AFRICA 2

3 HR MANAGEMENT SYSTEM STANDARDS MODEL FOR SOUTH AFRICA The SABPP is proud to present the South African HR professional and business community with the first version (2013) of the SABPP HR Management System Standards (HRMSS) Model. The model encompasses the four phases of good quality management practice, i.e. prepare, implement, review and improve, but contextualised for the field of HR Management. The 13 HR standard elements as agreed by HR Directors are as follows: Business strategy HR alignment 1. Strategic HRM 2. Talent management 3. HR Risk Management Functional/cross functional HR value chain 4. Workforce planning 5. Learning & Development 6. Performance management 7. Reward 8. Wellness 9. Employment Relations Management 10. Organisation Development 11. HR Service Delivery 12. HR Technology Measurement 13. HR Measurement SABPP 2013 HR MANAGEMENT SYSTEM STANDARDS MODEL FOR SOUTH AFRICA 3

4 P R E F A C E 1. GETTING THE BASICS RIGHT IN HR FOUNDATION FOR MOVING HR FORWARD IN A CHANGING WORLD OF WORK In the next few years, businesses all over the world will probably see an accelerating need for improved HR management, learning facilitated talent mobility programmes, leadership development and reengagement of their workforces. Finding the right talent and engaging employees in the right behaviours remain the critical ingredients of how organisations manage the uncertain and volatile economic conditions facing them today. Talk about the need for change in this globally challenged work place environment, and even more so in a developing and emerging economy such as South Africa. HR needs to move rapidly towards a business driven profile away from the traditional transactional workplace role of HR, driving the business model through talent management, business agility, globalisation and flatter organisations, and this imperative encourages a rethink of many traditional HR practices. Moreover, the need for a new focus on HR governance and risk management is key. Leading practices include: continuous recruiting; continuous learning; continuous engagement; continuous management and feedback; and continuous recognition and rewards. These define a more agile model for HR. However, before we can drive leading practices, we need to get the basics right. The adoption of professionally accepted HR standards for South Africa can help all South African organisations to move up the change curve more rapidly. Standards establish the good practice pathway for organisations to follow. The 13 elements of the SABPP HR standard reflect the new direction, driving business objectives through effective and efficient workforce management. SABPP 2013 P R E F A C E 4

5 SECTION 1 INTRODUCTION AND BENEFITS 2. INTRODUCTION TO THE SABPP STANDARDS The HR function in contemporary organisations is concerned with people enabling, people development and a focus on making the employment relationship fulfilling for both management and employees. In recent decades, the idea of resource centric organisation has gained popularity. This involves looking at all the resources utilised by the organisation in reaching its objectives and ensuring optimal use of each resource separately and as an integrated whole. It has become imperative to put people first while making sure of maximising the ROI (Return on Investment) on all resources. This has led to the development of the modern HRM function which has to balance ensuring the fulfilment of management objectives with ensuring that the needs of people resources are taken care of, while maximising the contribution of human capital to the success of the business. In this way, HR management (HRM) differs from personnel management not only in its broader scope but also in the way in which its mission is defined. HRM goes beyond the administrative tasks of personnel management and encompasses a broad vision of how management would like the people resources to contribute to the success of the organisation. Investors today are increasingly looking at the value of the intangible assets of a business in deciding where to invest. There are several efforts underway globally to formulate an evidence-based framework that can present valid information about how human capital, as one of the intangible assets, can be evaluated as investment risk. The SABPP HR Management System Standard emphasises the importance of human resource management as a leadership imperative and management instrument for monitoring and verifying the effective implementation of an organisation's HR strategy. Establishing standards is also an essential part of conformity assessment activities such as external certification/registration and of supply chain evaluation and compliance. Essentially, if you meet the national HR standard, but your suppliers don t, your business could be adversely affected, hence the need for a national HR standard. This SABPP Standards provide guidance on the management of HR management programmes, the conduct of HR management systems, and on the competence of HR professionals applying the standards, as well as providing a framework for HR service providers operating as consultants and learning providers. The standards are intended to apply to a broad range of potential users, including organisations implementing human resource management systems for the first time; organisations needing to conduct benchmarking of existing management systems for contractual reasons; and organisations needing to include HR into internal audit and risk assessment processes. SABPP 2013 SECTION 1 INTRODUCTION AND BENEFITS 5

6 The HR Standard can also be useful to organisations involved in certification/registration of management systems, in accreditation or in standardisation in the area of conformity assessment. The guidance in these SABPP Standards is intended to be flexible. As indicated at various points in the text, the use of these guidelines can differ according to the size, nature and complexity of the organisation, as well as its objectives and scope in wishing to implement a human resource management system. Although these SABPP Standards are written for the defined elements of the HR Management System, the user can consider adapting or extending the guidance provided herein to apply to other elements such as leadership or audits. At this stage, these SABPP Standards provide only should guidance. However, users can apply them to develop their own mandatory integrated management system, relating requirements of these Standards to international management system standards or specific internal requirements. 3. ACKNOWLEDGEMENTS The assistance of the following people and organisations in developing these Standards is gratefully acknowledged: Lead Facilitator: Dr Michael Robbins, MD: IMOR (UK) Standard 1 Facilitator: Elizabeth Dhlamini-Kumalo, HR Director: Sandvik Standard 2 Facilitator: Marius Jacobs, Director: Talent Factor Standard 3 Facilitator: Mohen Moopanar: Senior Manager Advisor: Ernest & Young Standard 4 Facilitator: Annetjie Moore, Principal: Odgers Berndtson South Africa Standard 5 Facilitator: Linda Chipunza, Head: Learnerships: FNB Standard 6 Facilitator: Fienie Rossouw Janse van Rensburg, MD: Institute for Performance Management Standard 7 Facilitator: Mike Honnet, Director: Mike Honnet & Associates Standard 8 Facilitator: Tracey Harper, Senior Integrated Workforce Health and Wellness Consultant: EOH Standard 9 Facilitator: Sithembele Stofile, Head: Professional Services: SABPP Standard 10 Facilitator: Otto Pretorius, Principal Thought Leader & Director: QBit Standard 11 Facilitator: Kate Dikgale-Freeman, Director: DNA Consulting Standard 12 Facilitator: Dawid Swart, Change Manager: African Rainbow Minerals Standard 13 Facilitator: Anthea Saffy, HRD Manager: Anglo Platinum SABPP 2013 ACKNOWLEDGEMENTS 6

7 SABPP also wants to thank the following professional bodies, associations and companies for their enthusiastic support of the initiative: Employee Assistance Professionals Association of South Africa Human Capital Institute (Africa) South African Reward Association Southern African Organisation Development Network South African Professional Trainers Association International Society for Improvement (Southern African chapter) Assessment Centre Study Group QBit Consulting Sage VIP Payroll EOH All standard writers, commentators and sponsors will be acknowledged in the final HR Standards Guide and on the launch on 20 August BENEFITS OF USING STANDARDS 1 While the absence of standards perpetuate inconsistencies in practice, the benefits of standards as described by the British Standards Institute are useful for this project: Improved performance Comparing present performance to standards allows the identification of gaps and the formulation of plans to close those gaps. Reduced risk A systematic review of operations in comparison to standards can reveal unidentified risks, which can then be analysed and mitigation strategies put in place. Enhanced reputation Adherence to standards is increasingly the floor requirement for tenders and contracts. In the field of HR and people management, potential employees are attracted to organisations that have a good reputation for developing people and managing them well. 1 With acknowledgements to the British Standards Institute. SABPP 2013 ACKNOWLEDGEMENTS 7

8 Encourage innovation In a global economy of rapidly emerging new technologies and markets, standards help set the rules and establish the frameworks, making it easier to innovate successfully. SABPP 2013 ACKNOWLEDGEMENTS 8

9 SECTION 2 SCOPE, GOVERNANCE AND LINKAGES 4. SCOPE OF THE HR STANDARDS These SABPP Standards establish a common set of criteria for the management of human resources within all South African organisations, irrespective of size, sector or industry. This is a national standard for all organisations in South Africa, including multinationals operating in South Africa. 5. CORPORATE GOVERNANCE Corporate governance refers to the policies, procedures and processes according to which an organisation is directed and controlled, according to the approaches adopted by the European Central Bank and the King III Code and Report on Governance for South Africa. The corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organisation such as the board, managers, shareholders and other stakeholders and lays down the rules and procedures for decision-making. Likewise, HR governance refers to the policies, procedures and processes according to which HR is directed and controlled. The overall purpose of a management review is to evaluate the suitability, adequacy, and effectiveness of an organisation's management system, and to look for improvement opportunities. Management reviews are also used to identify and assess opportunities to change an organisation s policy and procedures, to address resource needs, and to look for opportunities to improve its products or services For governance and management reviews to be effective, clear standards and requirements must be established, and this HRMSS intends to ensure that HR is effectively governed and managed in South Africa. 6. INTERNATIONAL MANAGEMENT STANDARDS COMPATABILITY AND LINKAGES The SABPP HR Standards are compatible with international management standards in their format and requirements and as such, can be introduced into any organisation that is currently using one or more of the sets of international standards. The South African HR Standards will provide clarity and detail to implement relevant parts of the other international standards in our national context. According to the International Standards Organisation a standard is a document that provides requirements, specifications, guidelines or characteristics that can be used consistently to ensure that materials, products, processes and services are fit for their purpose. International standards in common use in organisations include: SABPP 2013 SECTION 2 SCOPE, GOVERNANCE AND LINKAGES 9

10 International Standards Organisation (ISO) The ISO has several series of standards: ISO 9000 Quality management ISO Environmental management ISO 3166 Country codes ISO Social responsibility ISO Energy management ISO Risk management ISO Food safety management ISO 639 Language codes The Risk Management series is of particular relevance to HR. According to ISO 31000, risk is the effect of uncertainty on objectives. An effect is a positive or negative deviation from what is expected. Risk management refers to a coordinated set of activities and methods that is used to direct an organisation and to control the many risks that can affect its ability to achieve objectives. According to the Introduction to ISO , the term risk management also refers to the architecture that is used to manage risk. This architecture includes risk management principles, a risk management framework, and a risk management process. The European Foundation for Quality Management (EFQM) The EFQM s Excellence Model is the most popular quality management tool amongst European organisations. This Model uses 8 fundamental concepts of excellence : SABPP 2013 INTERNATIONAL MANAGEMENT STANDARDS COMPATABILITY AND LINKAGES 10

11 Several of these fundamental concepts relate to people, and the implementation of HR policies, procedures and systems. Investors in People (IiP) Investors in People, originating in the UK and now international, is a specialist set of Standards focusing on people development as a source of strategy implementation. IiP was introduced to South Africa in 2002 and has been implemented in over 500 organisations in this country. The SABPP HRMS Standards and the IiP overlap to some extent, but will complement each other in reaching the twin goals of business improvement through people and people development through work. The SABPP HRMS Standard is a professional body standard and its focus is therefore on professional HR practice. SABPP

12 SECTION 3 PRINCIPLES AND OBJECTIVES 7. PRINCIPLES OF IMPLEMENTING A HUMAN RESOURCE MANAGEMENT SYSTEM Whilst the implementation of an HRMS is about policies, procedures and systems, the people context must not be forgotten. It is therefore important to hold the following principles: Ethical conduct: the foundation of professionalism. Trust, integrity, confidentiality and discretion are essential to HRM. Fair presentation: the obligation to report truthfully and accurately. Due professional care: the application of diligence and judgment in HRM Risk-based approach. It is therefore essential to read and apply the HRMS is conjunction with the National HR Competency Model, given the fact that the competency standards in the latter model will support the understanding and implementation of the HRMS. 8. OBJECTIVES OF A HUMAN RESOURCE MANAGEMENT SYSTEM Objectives should be established for any HRMS, to direct the planning and conduct of the management system. In other words, what advantage do we as an organisation want to achieve by implementing an HRMS? These objectives may relate to: Management priorities, Commercial intentions, Integrated management system requirements, Statutory, regulatory, contractual and legislative requirements, Supplier evaluation, Stakeholder requirements, Risks to the organisation. These SABPP standards will assist organisations to realise the specific objectives they have set for their own HRMS. 9. CONTINUOUS IMPROVEMENT These SABPP Standards establish the elements of a continuous improvement process to develop, implement and maintain an effective HRMS. Continual improvement is a set of recurring activities that an organisation carries out in order to enhance its ability to meet requirements. Continual improvements can be achieved by carrying out audits, self-assessments, management reviews, and SABPP 2013 SECTION 3 PRINCIPLES AND OBJECTIVES 12

13 benchmarking projects. Continual improvements can also be realised by collecting data, analysing information, setting objectives, and implementing corrective and preventive actions. Within the spirit of integration and continuous improvement, the HRMS is also intended to provide practice standards in support of the National HR Competency Model. In this way, an integrated standards and competence-based approach is used. The implication is that HR practitioners need the right competencies in order to implement the HRMS. The new National HR Competency Model is depicted below: SABPP 2013 CONTINUOUS IMPROVEMENT 13

14 SECTION 4 - IMPLEMENTATION 10. ROLES AND RESPONSIBILITIES The CEO of SABPP is responsible for championing the National HR System Standard Model as a national SABPP project. The SABPP Higher Education Committee, and Learning and Quality Assurance Committee will oversee the process of accrediting university and learning provider curriculum based on the standard. HR professionals in all organisations will be responsible for implementing the standard and the workplace. SABPP will provide auditors to conduct external audits within organisations. A clear process, criteria and evidence requirements will be developed to assist in this process. On August at the National HR Standard Roll-Out Event, HR professionals will collectively decide how the standards will be implemented in the workplace. They will then develop the how to standard for applying the HRMSS. SABPP

15 SECTION 5 - NATIONAL HR SYSTEM STANDARD HR Standard Element 1 STRATEGIC HR MANAGEMENT 1.1 D E F I N I T I O N Strategic HR Management is a systematic approach to developing and implementing long-term HRM strategies, policies and plans that enable the organisation to achieve its objectives. 1.2 OBJECTIVES To direct and ensure the HR strategy is aligned to the organisation s objectives To provide a foundation for the employment value proposition of the organisation To establish a framework for the HR element of the organisation s governance, risk and compliance policies, practices and procedures which balance the needs of all stakeholders To provide strategic direction and measurements for strategic innovation and sustainable people practices To analyse the internal and external socio-economic environment and provide proactive people-related business solutions. SABPP 2013 SECTION 5 - NATIONAL HR SYSTEM STANDARD 15

16 1.3 IMPLEMENTATION Translate the overall strategic intent of the organisation into HR strategy Position the strategic HR agenda as an integral part of strategic decision making and operational plans Allocate HR resources and build capability to implement the HR mandate Provide the contextual foundation for the development of the policies, plans, practices and procedures Ensure accountability and responsibilities for the execution of HR strategy is measured and monitored within the governance framework of the organisation Drive continuous improvement and sustainability of the HR strategy through planned reviews and integrated reporting. 1.4 NOTES This standard element should be read and applied by taking cognisance of all the other standard elements, but with a particular focus on talent management, HR risk management, workforce planning, HR service delivery and HR measurement. HR Competency Model: HR practitioners must be able to play an appropriate role in the following outputs: Participation of formulation on business strategy Leadership in formulation of people strategy HR Business Plan SABPP 2013 SECTION 5 - NATIONAL HR SYSTEM STANDARD 16

17 HR Standard Element 2 TALENT MANAGEMENT 2. 1 D E F I N I T I O N Talent Management is the proactive design and implementation of a talent-driven business strategy directed to attracting, deploying, developing, retaining and optimising the appropriate talent requirements as identified in the workforce plan. 2.2 OBJECTIVES To identify mission critical positions and leadership roles in the organisation into the future from the Workforce Plan To set up processes and systems which will: Attract a sustainable pool of talent for current objectives and future organisation needs. Manage the retention and reward of talent. Link high potential employees with key future roles in the organisation. Identify through assessment the optimal development opportunities for talent To achieve consistent high levels of performance from employees To agree appropriate roles for all stakeholders in the development and management of talent To monitor and report on talent management key results areas and indicators. SABPP 2013 SECTION 5 - NATIONAL HR SYSTEM STANDARD 17

18 2.4 IMPLEMENTATION Analyse the talent needs of the organisation Conduct a workforce and labour market trend analysis based on internal and external requirements and realities Create a talent management system focusing on current and future needs Engage line management regarding talent requirements Decide on interventions to support effective talent management in the organisation Conduct a talent review linked to organisational objectives. 2.5 NOTES This standard element should be read and applied by taking cognisance of all the other standard elements, but with a particular focus on strategic HR management, HR risk management, workforce planning, learning and development, organisation development, HR technology and HR measurement. HR Competency Model: HR practitioners must be able to play an appropriate role in the following outputs: Employment Value Proposition (EVP) Skills acquisition and retention strategies Leadership development Integration of talent management activities Succession management SABPP 2013 SECTION 5 - NATIONAL HR SYSTEM STANDARD 18

19 HR Standard Element 3 HR RISK MANAGEMENT 3.1 D E F I N I T I O N HR Risk Management is a systematic approach of identifying and addressing human factors (uncertainties and opportunities) that can either have a positive or negative effect on the realisation of the objectives of an organisation. 3.2 OBJECTIVES To increase the probability and impact of positive events and decrease the probability and impact of negative events caused by human factors on the achievement of organisational objectives To align HR and people management practices within the governance, risk and compliance framework and integrated reporting model of the organisation To ensure appropriate risk assessment practices and procedures relating to human factors are embedded within the organisation To ensure appropriate risk controls are designed and applied to HR activities and interventions To give the means to HR to play its key contributor role in creating and sustaining a risk culture in an organisation. 3.3 IMPLEMENTATION Position the role of HR in influencing and communicating the organisational risk culture Assess potential positive and negative human factor risks to achieving organisational objectives. SABPP 2013 SECTION 5 - NATIONAL HR SYSTEM STANDARD 19

20 3.3.3 Identify and evaluate the potential risk impacts with regard to strategic and operational HR activities Decide on appropriate risk appetites for the different components of the HR function Design and implement appropriate people-based risk management systems and risk controls Ensure all HR risk practices conform to the organisational governance, risk and compliance strategies and policies including integrated reporting. 3.4 NOTES This standard element should be read and applied by taking cognisance of all the other standard elements, but with a particular focus on strategic HR management, talent management, reward employment relations management, workforce planning, HR service delivery and HR measurement. HR Competency Model: HR practitioners must be able to play an appropriate role in the following outputs: Governance principles and adherence Legislation knowledge and compliance HR Risk Management SABPP 2013 SECTION 5 - NATIONAL HR SYSTEM STANDARD 20

21 HR Standard Element 4 WORKFORCE PLANNING 4.1 D E F I N I T I O N Workforce planning is the systematic identification and analysis of organisational workforce needs culminating in a workforce plan to ensure sustainable organisational capability in pursuit of the achievement of its strategic and operational objectives. 4.2 OBJECTIVES To design a strategic workforce plan meeting the needs of the organisation To align the workforce planning cycle with the strategic planning cycle of the organisation To evaluate and review workforce and labour market trends in relation to your industry sector To ensure appropriate budgeting or cost modelling to execute the workforce plan To manage the supply of appropriately qualified people to ensure an adequate pipeline of appropriately qualified staff. 4.3 IMPLEMENTATION Conduct skills gap analysis in conjunction with the development of organisational objectives. SABPP 2013 SECTION 5 - NATIONAL HR SYSTEM STANDARD 21

22 4.3.2 Decide on appropriate sourcing models either internally or externally to sustain organisational performance (e.g. outsourcing, joint ventures, co-sourcing, partnerships) Align workforce plan with employment value proposition and branding Translate the strategic workforce plan into operational capability Plan and implement enabling interventions to achieve your workforce plan (e.g. recruitment and selection, succession planning) Develop career planning processes and programmes Assess the impact of workforce strategy and planning on achieving organisational objectives. 4.4 NOTES This standard element should be read and applied by taking cognisance of all the other standard elements, but with a particular focus on strategic HR management, talent management, organisation development and HR measurement. HR Competency Model: HR practitioners must be able to play an appropriate role in the following outputs: Workforce planning and modeling Job analysis and design Assessment and selection Local and international transfers Terminations SABPP 2013 SECTION 5 - NATIONAL HR SYSTEM STANDARD 22

23 HR Standard Element 5 LEARNING AND DEVELOPMENT 5.1. D E F I N I T I O N Learning and development is the practice of providing occupationally directed and other learning activities that enable and enhance the knowledge, practical skills and work place experience and behaviour of individuals and teams based on current and future occupational requirements for optimal organisational performance and sustainability. 5.2 OBJECTIVES To enhance human performance in relation to organisational objectives To align learning and development plans to organisational strategy To create an occupationally competent and engaged workforce which builds organisational capability in line with the objectives of the organisation To create a learning environment that enables optimal learning and growth To develop a culture that enables individual and team competency development in achieving organisational objectives To position learning and development as a catalyst for continuous improvement, change and innovation To evaluate the impact of learning and development interventions at an individual, team and organisational level. SABPP 2013 SECTION 5 - NATIONAL HR SYSTEM STANDARD 23

24 5.3 IMPLEMENTATION Formulate a learning and development strategy for an organisation Align learning and development strategy with organisational goals and culture Ensure all learning and development activities conform to appropriate quality and compliance requirements and competency models Identify, select and implement the appropriate learning and development interventions according to the identified organisational need Ensure the design and provision of learning and development interventions are appropriate and integrated Leverage the utilisation of appropriate online technologies to accelerate learning capacity and capability Evaluate the impact of learning and development to assess quality, impact and alignment. 5.4 NOTES This standard element should be read and applied by taking cognisance of all the other standard elements, but with a particular focus on strategic HR management, talent management, organisation development, performance management and HR measurement. HR Competency Model: HR practitioners must be able to play an appropriate role in the following outputs: HRD strategy and planning Competency modeling and competency assessment Training logistics and administration Training needs analysis Management of learning providers Design and delivery of development activities Evaluation of L&D interventions Coaching and mentoring Induction/orientation Individual Development Plans (IDPs) and Career Management Knowledge Management SABPP 2013 SECTION 5 - NATIONAL HR SYSTEM STANDARD 24

25 HR Standard Element 6 PERFORMANCE MANAGEMENT 6.1 D E F I N I T I O N Performance management is a planned process of directing, supporting, aligning and improving individual and team performance in enabling the sustained achievement of organisational objectives. 6.2 OBJECTIVES To translate and cascade broad organisational performance drivers into team and individual performance targets To establish an appropriate performance management process, methodology and system relevant to the needs, size, scope and complexity of the organisation To provide appropriate performance consequences (reward, recognition and development opportunities) that attract, retain and motivate employees To ensure fair, ethical and organisation cultural practices focusing on the achievement of performance targets To create and maintain a high performance organisation culture driving sustainable performance To measure progress against agreed individual and team objectives that enable attainment of organisational objectives. SABPP 2013 SECTION 5 - NATIONAL HR SYSTEM STANDARD 25

26 6.3 IMPLEMENTATION Develop a performance management strategy and policy for an organisation Implement an appropriate performance management system Ensure all staff are aware of the performance management process and system Establish a framework for linking reward to performance Ensure performance management system is integrated with the overall organisation management system Ensure the performance management system has a mechanism for dealing with underperformance Establish a performance driven culture focusing on outputs and targets Evaluate the effectiveness of the performance management system. 6.4 NOTES Performance management is a line management responsibility, supported by HR through providing processes, procedures and systems. This standard element should be read and applied by taking cognisance of all the other standard elements, but with a particular focus on strategic HR management, talent management, HR risk management, learning and development, organisation development, HR service delivery and HR measurement. HR Competency Model: HR practitioners must be able to play an appropriate role in the following outputs: Performance management strategy, policy and processes Setting of performance standards and assessment of performance Performance improvement SABPP 2013 SECTION 5 - NATIONAL HR SYSTEM STANDARD 26

27 HR Standard Element 7 REWARD 7.1 D E F I N I T I O N Reward is a strategy and system that enables organisations to offer an employment value proposition to employees in accordance with fair and appropriate levels of reward in recognition for their contribution to the achievement of agreed deliverables in line with organisational objectives and values. (An employment value proposition is the deal what we offer as a total employment experience to employees and what we demand in exchange.) 7.2 OBJECTIVES To design and implement an appropriate employment value proposition aligned with organisation culture and objectives, and achieving a balance between the needs of the employer and employee To deliver a fair and equitable reward system or process and system that is ethical, cost effective and sustainable To ensure compliance with organisational governance principles and practices aligned to national governance codes of practice and relevant legislation To ensure your employment value proposition is in line with current industry and sector norms. SABPP 2013 SECTION 5 - NATIONAL HR SYSTEM STANDARD 27

28 7.3 IMPLEMENTATION Establish a remuneration committee or other appropriate mechanisms for determining reward structures, philosophy and policy Formulate a remuneration strategy and policy for your organisations that attracts, motivates and retains staff Ensure the reward strategy is aligned with appropriate legislative, governance and other directive requirements Identify and implement policies, practices and procedures that enable the rewards system to operate effectively Ensure understanding and awareness of the reward system Align and integrate reward with other HR practices (e.g. performance review) for optimal impact Benchmark and review the reward policy, process and practices at regular intervals to ensure relevance and impact (pay scales, benefits, incentives, etc). 7.4 NOTES This standard element should be read and applied by taking cognisance of all the other standard elements, but with a particular focus on strategic HR management, talent management, HR risk management, performance management and HR measurement. HR Competency Model: HR practitioners must be able to play an appropriate role in the following outputs: Rewards policy and systems Benchmarking Job Evaluation Salary structuring Salary and wage reviews Payroll Incentives Employee Conditions of Employment and Benefits SABPP 2013 SECTION 5 - NATIONAL HR SYSTEM STANDARD 28

29 HR Standard Element 8 EMPLOYEE WELLNESS 8.1 D E F I N I T I O N Employee wellness is a strategy to ensure that a safe and healthy work environment is created and maintained, together with individual wellness commitment that enables employees to perform optimally while meeting all health and safety legislative requirements and other relevant wellness good practices in support of the achievement of organisational objectives. 8.2 OBJECTIVES To promote opportunities and guidance that enables employees to engage in effective management of their own physical, mental, financial and social well-being To enable the employer to manage all aspects of employee wellness that can have a negative impact on employees ability to deliver on organisational objectives To promote a safe and healthy working environment in pursuit of optimum productivity and preserve human life and health To reduce employee risk emanating from health and wellness issues To contain health and wellness costs To enhance the employment value proposition by means of promoting a culture of individual health and overall organisational wellness. SABPP 2013 SECTION 5 - NATIONAL HR SYSTEM STANDARD 29

30 8.3 IMPLEMENTATION Evaluate the organisational need and set objectives and boundaries for wellness programmes paying particular attention to high risk groups Formulate employee wellness strategy, policies and relevant HR procedures, fair to all employees, to promote and manage wellness programmes and risks Promote awareness of the wellness policy, strategy and procedures of the organisation Maintain statistical records across the organisation with regard to all aspects of wellness and specific case and incident analysis Consider flexible work practices and other alternative work arrangements to promote work life balance where possible Review the effectiveness of wellness programmes and interventions in support of operational objectives. 8.4 NOTES This standard element should be read and applied by taking cognisance of all the other standard elements, but with a particular focus on strategic HR management, HR risk management, employee relations management, performance management and HR measurement. HR Competency Model: HR practitioners must be able to play an appropriate role in the following outputs: Wellness strategy and policy Occupational Health and Safety Chronic disease management Management of opportunities for people with disabilities Quality of work life and wellbeing Employee services SABPP 2013 SECTION 5 - NATIONAL HR SYSTEM STANDARD 30

31 HR Standard Element 9 EMPLOYMENT RELATIONS MANAGEMENT 9.1 D E F I N I T I O N Employment relations is the management of individual and collective relationships in an organisation through the implementation of good practices that enable the achievement of organisational objectives compliant with the legislative framework and appropriate to socioeconomic conditions. 9.2 OBJECTIVES To create a climate of trust, cooperation and stability within an organisation To ensure appropriate and effective conditions of employment and fairness across all levels of employees To achieve a harmonious and productive working environment To meet the employer s duty of care towards its employees and other stakeholders To provide a framework for conflict resolution and collective bargaining where relevant To ensure capacity building and compliance to relevant labour legislation and codes of good practice (ILO and Department of Labour). 9.3 IMPLEMENTATION Formulate appropriate employment relations strategies, structures, policies, practices and procedures. SABPP 2013 SECTION 5 - NATIONAL HR SYSTEM STANDARD 31

32 9.3.2 Implement appropriate dispute resolution mechanisms (mediation, arbitration, conciliation) Provide appropriate procedures to manage discipline and grievances Ensure all employment relations procedures, policies and practices conform to appropriate legislation and codes of good practice Create effective communication channels and building relationships between stakeholders Evaluate the state of employment relations by conducting appropriate employment relations audits to establish current climate and associated risks Enhance the established practices and procedures by innovative interventions that foster sound relationships Leverage employment relations to promote diversity and prevent unfair discrimination Contribute to community development that improves the socio-economic environment of employees. NOTES The role of the line manager is critical in maintaining sound employment relations, but HR should support managers with this duty. This standard element should be read and applied by taking cognisance of all the other standard elements, but with a particular focus on strategic HR management, HR risk management, employee wellness, performance management and HR measurement. HR Competency Model: HR practitioners must be able to play an appropriate role in the following outputs: Employment Relations (ER) Strategy Working with lawyers and agreements ER Advice Collective ER (a) Relationships and (b) Negotiations Grievances and Conflict Strikes and lockouts Disciplinary cases Dismissals and unfair labour practices Restructuring acquisitions, mergers, demergers, downsizing and outsourcing SABPP 2013 SECTION 5 - NATIONAL HR SYSTEM STANDARD 32

33 HR Standard Element 10 ORGANISATION DEVELOPMENT 10.1 D E F I N I T I O N Organisation development (OD) is a planned systemic change process to continually improve an organisation s effectiveness and efficiency by utilising diagnostic data, and designing and implementing appropriate solutions and interventions to measurably enable the organisation to optimise its purpose and strategy OBJECTIVES To establish links with organisational purpose across all levels and functions of an organisation To ensure organisation design facilitates the purpose of the organisation To improve the ability of individuals, teams, departments and functions to work cooperatively to meet organisation objectives and optimise engagement at work To facilitate stakeholder engagement in all OD processes to ensure optimum buy-in To build the relevant OD capability to meet organisational needs To ensure compliance with relevant continuous improvement principles and practices SABPP 2013 SECTION 5 - NATIONAL HR SYSTEM STANDARD 33

34 10.3 IMPLEMENTATION Design, develop and prioritise appropriate responses to systemic OD issues identified by means of relevant diagnostic methodologies Ensure the clarity of OD interventions by identifying the anticipated outcomes of the OD process Ensure OD has a clear implementation roadmap that is applicable to the organisation structure, culture and processes Facilitate relevant change and improvement activities in line with agreed organisational requirements Contribute to creating, building and sustaining the organisation culture needed to optimise the purpose and strategy of the organisation Define an efficient and effective OD measurement system and its link to achieving organisational goals NOTES This standard element should be read and applied by taking cognisance of all the other standard elements, but with a particular focus on strategic HR management, HR risk management, employee wellness, performance management, learning and development and HR measurement. HR Competency Model: HR practitioners must be able to play an appropriate role in the following outputs: Organisation behavior Employee engagement Team functioning Organisational change Healthy organisation culture Employee communication Productivity SABPP 2013 SECTION 5 - NATIONAL HR SYSTEM STANDARD 34

35 HR Standard Element 11 HR SERVICE DELIVERY 11.1 D E F I N I T I O N HR Service Delivery can be defined as the adequate provision of HR services meeting the needs of the organisation and its employees which enables delivery or f organisational goals and targets OBJECTIVES To ensure timeousness, consistency and quality in the delivery of HR services To ensure sustainability of HR practices within the organisation To support the effective management of the human element in an organisation To provide effective professional advice and guidance to managers and employees regarding the correct implementation of labour laws, HR policies, practices and procedures To establish functional standards for HR record-keeping and administration To measure employee engagement and satisfaction with the delivery of HR services To capture and provide management and the board with appropriate HR data and statistics. SABPP 2013 SECTION 5 - NATIONAL HR SYSTEM STANDARD 35

36 11.3 IMPLEMENTATION Design and implement HR policies, practices and procedures Design and implement the HR management system Ensure adequate understanding of the role of HR within an organisation Establish relevant communication channels with both management and employees to address relevant HR matters Ensure a user-friendly mechanism for understanding, promoting and ensuring compliance with all appropriate legislation applicable to the organisation Determine the methodology and process for establishing HR client satisfaction Provide independent professional oversight, guidance and consulting with regard to HR policy, strategy and organisational people practices and ethical values Facilitate appropriate interventions building organisational culture and capacity NOTES This standard element should be read and applied by taking cognisance of all the other standard elements, but with a particular focus on strategic HR management, HR risk management, employee wellness, employment relations, performance management, learning and development and HR measurement. HR Competency Model: HR practitioners must be able to play an appropriate role in the following outputs: Customer orientation Management of HR function Management of outsourced functions Policy development and administration Maintenance of documentation and records SABPP 2013 SECTION 5 - NATIONAL HR SYSTEM STANDARD 36

37 HR Standard Element 12 HR TECHNOLOGY 12.1 D E F I N I T I O N HR technology is the effective utilisation of relevant technological applications and platforms that provide accessible and accurate data, information, knowledge and intelligence that enables more effective decision-making in enabling employees towards the implementation of organisational strategy OBJECTIVES To consolidate and rapidly extract relevant data in real time that empowers more effective HR decision making To deliver effective presentation of HR data and information to board and executive committee meetings To allow easy access to relevant data in compliance with relevant data security and other information technology compliance requirements, laws, codes and standards (privacy) To create more capacity within existing HR structures to deliver value-adding activity To streamline the HR Management System and its associated processes for effective use To enable the effective implementation of change and improvements to the HR Management System. SABPP 2013 SECTION 5 - NATIONAL HR SYSTEM STANDARD 37

38 12.3 IMPLEMENTATION Formulate an HR Technology policy and strategy Analyse and prioritise all the relevant HR categories of data and information Forecast future system load/spare capacity Design the specification for the HR Information Technology system (i.e. software or purchase) Upload and configure data to the system Test the effectiveness of the system before implementation Build capacity of relevant staff members to access and use the system Implement continuous improvement process Ensure HR-IT policies, practices and procedures are aligned with organisational IT governance Monitor and evaluate the effectiveness of the system NOTES This standard element should be read and applied by taking cognisance of all the other standard elements, but with a particular focus on strategic HR management, talent management, employee wellness, performance management, learning and development, HR service delivery and HR measurement. HR Competency Model: HR practitioners must be able to play an appropriate role in the following outputs: HR Management Systems and use of technology Leverage of technological developments Innovation SABPP 2013 SECTION 5 - NATIONAL HR SYSTEM STANDARD 38

39 HR Standard Element 13 HR MEASUREMENT 13.1 D E F I N I T I O N HR measurement is a continuous process of gathering, analysing, interpreting and presenting quantitative and qualitative data to measure and align the impact of HR practices on organisational objectives, including facilitating internal and external auditing of HR polices, processes, practices and outcomes OBJECTIVES Determine measurement approaches, methodologies and metrics to assess the effectiveness and efficiency of HR practices Identify relevant measurement areas for the purpose of integrated reporting Implement appropriate tools and methods to measure the efficiency, effectiveness and consistency of HR practices across the whole organisation Provide a clear framework for measuring HR impact on the bottom-line of the organisation Develop performance indicators for HR service delivery and business impact IMPLEMENTATION Develop an integrated HR measurement and systems framework for gathering data and business intelligence Ensure data accuracy and integrity Establish and implement appropriate approaches, methodologies and metrics for the organisation. SABPP 2013 SECTION 5 - NATIONAL HR SYSTEM STANDARD 39

40 Develop an HR scorecard and relevant dashboard with key indicators and metrics for the organisation Create awareness and build organisational capability for utilising and optimising HR measurement, metrics and audits Conduct an internal and external audit of the HR function and people practices of the organisation Measure the level of employee engagement and organisation climate and implement appropriate solutions Ensure HR reporting is infused in overall organisational governance and integrated reporting Assess level of alignment of HR and people practices with business strategy Monitor the key indicators of the HR dashboard and address all risk areas NOTES This standard element should be read and applied by taking cognisance of all the other standard elements, but with a particular focus on strategic HR management, talent management, HR risk management, performance management, learning and development, HR service delivery and HR technology. HR Competency Model: HR practitioners must be able to play an appropriate role in the following outputs: Benchmarking and research HR and business metrics Use of metrics and analytics Value adding reporting at operational, tactical and strategic levels SABPP 2013 SECTION 5 - NATIONAL HR SYSTEM STANDARD 40