HIGHER CERTIFICATE IN BUSINESS MANAGEMENT

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1 HIGHER CERTIFICATE IN BUSINESS MANAGEMENT Human Resource Management Contact details: Regenesys Business School Tel: +27 (11) Fax: +27 (11)

2 Version Control 5_f Date of Publication: December, 2013 Publisher: Regenesys Management Place of Publication: Sandton Date Version Initials Description of Change 5 August _f FVS Name revision and formatting 1 October _f FVS Reference amendment 22 November MA Adapted to new learning outcomes 29 November PL Reviewed 3 December MA Adapted to reviewed comments 4 December PL Reviewed and formatted Final approval 21 January _f FVS Update template Formatting This study guide highlights key focus areas for you as a student. Because the field of study in question is so vast, it is critical that you consult additional literature. Copyright Regenesys, 2014 All rights reserved. No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording or otherwise) without written permission of the publisher. Any person who does any unauthorised act in relation to this publication may be liable for criminal prosecution and civil claims for damages.

3 CONTENTS 1. WELCOME TO REGENESYS INTRODUCTION TEACHING AND LEARNING METHODOLOGY ALIGNING ORGANISATIONAL, TEAM AND INDIVIDUAL OBJECTIVES ICONS USED IN THIS STUDY GUIDE STUDY MATERIAL FOR THE MODULE RECOMMENDED RESOURCES RECOMMENDED ARTICLES RECOMMENDED BOOKS RECOMMENDED MULTIMEDIA ADDITIONAL SOURCES TO CONSULT LEARNING OUTCOMES CONTENT SCOPE AND LEARNING GUIDANCE HUMAN RESOURCE MANAGEMENT FUNDAMENTALS INTRODUCTION DEFINE THE CONCEPTS FUNDAMENTALS OF HUMAN RESOURCE MANAGEMENT SUCCESS AND FAILURE FACTORS OF HUMAN RESOURCE MANAGEMENT INTRODUCTION TO HUMAN BEHAVIOUR INTRODUCTION HR LINKS TO BEHAVIOURAL SCIENCE FOUR ASPECTS OF INDIVIDUALS PERCEPTION PERSONALITIES COGNITIVE ABILITIES ATTITUDE DEVELOP YOURSELF OVERVIEW OF THE LEGISLATIVE FRAMEWORK INTRODUCTION KEY HR LEGISLATION HUMAN RESOURCE PLANNING INTRODUCTION HR PLANNING STEPS JOB ANALYSIS JOB DESCRIPTIONS JOB SPECIFICATIONS HUMAN RESOURCE FORECASTING THE HUMAN RESOURCE PLAN RECRUITMENT, SELECTION AND INDUCTION INTRODUCTION RECRUITMENT AND SELECTION PROCESS SELECTION THE POST-INTERVIEW PROCESS INDUCTION EFFECTIVE TEAM MANAGEMENT INTRODUCTION UNDERSTAND GROUPS THE IMPORTANCE OF TEAMS THE STAGES OF TEAM DEVELOPMENT INTERPRETING AND MANAGING GROUP DYNAMICS STATEMENTS TO MANAGE GROUP BEHAVIOURS EFFECTIVE COMMUNICATION... 54

4 7.7.1 INTRODUCTION VERBAL COMMUNICATION NON-VERBAL COMMUNICATION STAFF DEVELOPMENT AND TRAINING INTRODUCTION IDENTIFICATION OF TRAINING NEEDS DIFFERENT METHODS OF TRAINING DEVELOP AND IMPLEMENT A TRAINING PLAN PERFORMANCE APPRAISAL INTRODUCTION DEFINE PERFORMANCE APPRAISAL APPRAISAL PROCESS MOTIVATION INTRODUCTION MOTIVATION EMPLOYEE MOTIVATION THEORIES OF MOTIVATION EMPLOYEE MOTIVATION THEORIES STRATEGIES TO MOTIVATE EMPLOYEES CONFLICT MANAGEMENT INTRODUCTION DEFINING CONFLICT APPROACHES TO CONFLICT RESOLUTION CONFLICT MANAGEMENT MODELS CAUSES OF CONFLICT COMMONLY MISTAKES AND SOLUTIONS WHEN RESOLVING CONFLICT DO S AND DON TS OF NEGOTIATIONS EMOTIONAL INTELLIGENCE IN ORGANISATIONS ORGANISATIONAL CULTURE AND REWARDS INTRODUCTION CULTURAL TYPOLOGIES CHARACTERISTICS OF AN ORGANISATION S CULTURE MAINTAINING A CULTURE ROLE OF REWARDS REFERENCES APPENDIX 1: OVERVIEW OF SOUTH AFRICAN HR LEGISLATION THE CONSTITUTION OF SOUTH AFRICA ACT, LEGISLATION RELEVANT FOR HUMAN RESOURCE MANAGEMENT LABOUR RELATIONS ACT, NO. 66 OF BASIC CONDITIONS OF EMPLOYMENT ACT, NO. 75 OF SKILLS DEVELOPMENT ACT, NO 97 OF SKILLS DEVELOPMENT AMENDMENT ACT, NO. 26 OF EMPLOYMENT EQUITY ACT, NO. 55 OF

5 List of Tables TABLE 1: FOUR ASPECTS OF INDIVIDUALS TABLE 2: ASPECTS OF JOB ANALYSIS TABLE 3: HUMAN RESOURCE FORECASTING TABLE 4: TYPES OF GROUPS TABLE 5: DIFFERENCES BETWEEN GROUPS AND TEAMS TABLE 6: OUTING THE THREE LEVELS TO OBSERVE IN GROUPS AND TEAMS TABLE 7: STATEMENTS TO MANAGE GROUP BEHAVIOUR TABLE 8: ROLE OF TEAM LEADER IN MANAGING GROUP BEHAVIOURS TABLE 9: FUNCTIONS OF COMMUNICATION TABLE 10: METHODS OF COMMUNICATION TABLE 11: BARRIERS TO EFFECTIVE COMMUNICATION TABLE 12: KEY COMMUNICATION SKILLS TABLE 13: APPROACHES TO RE-ESTABLISH COMMUNICATION TABLE 14: METHODS OF CONVEYING NON-VERBAL MESSAGES TABLE 15: DEFINING ORGANISATIONAL ROLES TABLE 16: BASIC TRAINING PLAN TEMPLATE TABLE 17: THE IMPORTANCE OF PERFORMANCE APPRAISALS TABLE 18: PERFORMANCE APPRAISAL SYSTEM PROBLEMS TABLE 19: PERFORMANCE APPRAISAL METHODS TABLE 20: SATISFY EMPLOYEES NEEDS TABLE 21: CAUSES OF CONFLICT TABLE 22: CHARACTERISTICS OF AN ORGANISATION S CULTURE TABLE 23: EMPLOYER AND EMPLOYEE RESPONSIBILITIES ACCORDING TO THE BCEA List of Figures FIGURE 1: FUNCTIONS OF THE HUMAN RESOURCE DEPARTMENT FIGURE 2: FOUR INTELLIGENCES FIGURE 3: STEPS IN HR PLANNING FIGURE 4: THE INTERVIEW PROCESS FIGURE 5: THE COMMUNICATION PROCESS FIGURE 6: PERFORMANCE APPRAISAL PROCEDURE FIGURE 7: MASLOW S HIERARCHY OF NEEDS FIGURE 8: DUAL CONCERN MODEL FIGURE 9: DOMAINS OF EMOTIONAL INTELLIGENCE... 89

6 1. WELCOME TO REGENESYS Have a vision. Think big. Dream, persevere and your vision will become a reality. Awaken your potential knowing that everything you need is within you. Dr. Marko Saravanja At Regenesys, we assist individuals and organisations to achieve their personal and organisational goals, by enhancing their management and leadership potential. We approach education and development holistically, considering every interaction not only from an intellectual perspective but also in terms of emotion and spirituality. Our learning programmes are designed to transform and inspire your mind, heart and soul, and thus allow you to develop the positive values, attitudes and behaviours, which are required for success. Having educated over students based in highly reputable local and international corporations across over 100 countries since Regenesys' inception in 1998, we are now one of the fastest-growing and leading institutions of management and leadership development in the world. Regenesys ISO 9001:2008 accreditation bears testimony to our quality management systems meeting international standards. Regenesys is accredited with the Council on Higher Education. Our work is rooted in the realities of a rapidly changing world and we provide our clients with the knowledge, skills and values required for success in the 21st century. At Regenesys, you will be treated with respect, care and professionalism. You will be taught by business experts, entrepreneurs and academics who are inspired by their passion for human development. You will be at a place where business and government leaders meet, network, share their experiences and knowledge, learn from each other, and develop business relationships. You will have access to a campus, in the heart of Sandton, with the tranquillity of a Zen garden, gym and meditation room. We encourage you to embark on a journey of personal development with Regenesys. We will help you to awaken your potential and to realise that everything you need to succeed is within you. We will be with you every step of the way. We will work hard with you and, at the end celebrate your success with you. Areas of Expertise Regenesys Business School 1

7 2. INTRODUCTION Welcome to the module on Human Resource Management (HRM). We trust that you will find this subject exciting, stimulating and that it will challenge you and make an important impact on your life. In this module, we will focus on human resources as an asset to an organisation and all the aspects impacting on the performance and development of such an asset that will be beneficial to the organisation. This module serves as an introduction to human resource management principles and processes. 2.1 TEACHING AND LEARNING METHODOLOGY Regenesys uses an interactive teaching and learning methodology that encourages self-reflection and promotes independent and critical thinking. Key to the approach utilised is an understanding of adult learning principles, which recognise the maturity and experience of participants, and the way that adult students need to learn. At the core of this is the integration of new knowledge and skills into existing knowledge structures, as well as the importance of seeing the relevance of all learning via immediate application in the workplace. Practical exercises are used to create a simulated management experience to ensure that the conceptual knowledge and practical skills acquired can be directly applied within the work environment of the participants. The activities may include scenarios, case studies, self-reflection, problem solving and planning tasks. Training manuals are developed to cover all essential aspects of the training comprehensively, in a user-friendly and interactive format. Our facilitators have extensive experience in management education, training and development. Please read through this Study Guide carefully, as it will influence your understanding of the subject matter and the successful planning and completion of your studies. Regenesys Business School 2

8 2.2 ALIGNING ORGANISATIONAL, TEAM AND INDIVIDUAL OBJECTIVES This course will draw on a model developed by Regenesys Management, which demonstrates how the external environment, the levels of an organisation, the team and the components of an individual are interrelated in a dynamic and systemic way. The success of an individual depends on his/her self-awareness, knowledge and ability to manage successfully these interdependent forces, stakeholders and processes. The degree of synergy and alignment between the goals and objectives of the organisation, the team and the individual determines the success or failure of an organisation. It is, therefore, imperative that each organisation ensures that team and individual goals and objectives are aligned with the organisation s strategies (vision, mission, goals and objectives, etc.); structure (organogram, decision-making structure, etc.); systems (HR, finance, communication, administration, information, etc.); culture (values, level of openness, democracy, caring, etc.). Hence, an effective work environment should be characterised by the alignment of organisational systems, strategies, structures and culture, and by people who operate synergistically. Regenesys Integrated Management Model Regenesys Business School 3

9 3. ICONS USED IN THIS STUDY GUIDE Icons are included in the Study Guide to enhance its usability. Certain icons are used to indicate different important aspects in the Study Guide to help you to use it more effectively as a reference guide in future. The icons in this Study Guide should be interpreted as follows: Definition The definitions provide an academic perspective on given terminology. They are used to give students a frame of reference from which to define a term using their own words. Examples The example icon is used to indicate an extra/additional text that illustrates the content under discussion. These include templates, simple calculation, problem solution, etc. Video clip or presentation This icon indicates a URL link to a video clip or presentation on the subject matter for discussion. It is recommended that students follow the link and listen/read the required sources. Interesting source to consult The source icon is used to indicate text sources, from the Internet or resource centre, which add to the content of the topic being discussed In a nutshell This icon indicates a summary of the content of a section in the workbook and to emphasise an important issue. Calculations This icon indicates mathematical or linguistic formulae and calculations. Self-reflection Students complete the action of selfreflection in their own time. It requires students to think further about an issue raised in class or in the learning materials. In certain instances, students may be required to add their views to their assignments. Tasks The task icon indicates work activities that contact students must complete during class time. These tasks will be discussed in class and reflected upon by students and facilitators. E-learning students can use these tasks simply to reinforce their knowledge. Note This icon indicates important information of which to take note. Regenesys Business School 4

10 4. STUDY MATERIAL FOR THE MODULE You have received material that includes the following: Study guide Recommended reading Assignment These resources provide you with a starting point from which to study the contents of this module. In addition to these, other resources to assist you in completing this module will be provided online via the link to this module. Guidance on how to access the material is provided in the Academic Handbook, which you received when you registered for this qualification. 5. RECOMMENDED RESOURCES A number of recommended resources have been identified to assist you in successfully completing this module. 5.1 RECOMMENDED ARTICLES Where applicable, the following articles are recommended for the successful completion of this module: Abdullah, H. 2009, Definitions of HRD: Key concepts from a national and international context, European Journal of social sciences, (10) 4, Barnett, S. 2003, Teams in the workplace, (accessed 13 November 2013). Department of Higher Education and Training. 2010, Framework for the National Skills Development Strategy 2011/ /16, (accessed 15 November 2013). Department of Labour. n.d, Introduction to the Quality Council for Trades and Occupations (QCTO), (accessed 12 November 2013). FASSET. 2004, Skills Planning, (accessed 15 November 2013). Frank, L. n.d, Effective Communication, Bulletin 6103: Group works. Regenesys Business School 5

11 Government of Newfoundland and Labrador. 2008, Human Resource / workforce planning and departmental planning A Guide to integration and alignment, (accessed 13 November 2013). Heathfield, S. 2012, How to change your culture: organizational culture change, (accessed 7 May 2013). Lee, S. 2012, The Five Stages of Team Development, Development&id= (accessed 13 November 2013). Neill, J. 2007, Group Dynamics, processes and development, (accessed 13 November 2013). Scqf.org, n.d. Job description / person specification examples using SCQF (accessed 12 November 2013). Serrat, O. 2009, Understanding and developing emotional intelligence, Asian Development Bank, (49). Shanks, N.H. n.d, Chapter 2: Management and motivation, (accessed 15 November 2013). SHRM HR Content. 2011, Chapter 8: Performance Management and appraisal, Part III: Developing and Managing, (accessed 13 November 2013). Wikieducator, 2005, Performance appraisal, (accessed 15 November 2013). Additional articles that may prompt discussions and further assist you in completing this course will be saved on Regenesys Online under the relevant course. Please visit the site regularly to access these additional sources. 5.2 RECOMMENDED BOOKS The following books are recommended for this module: Havenga, W., Kleynhans, R., Markham, L. and Van Aswegen, S. 2012, Introduction to Human Resource Management, Fresh perspectives, 2nd ed. Pearson: Cape Town. Edenborough, R. 2005, Assessment methods in recruitment, selection and performance [e-book], d%20performance.pdf (accessed 13 November 2012). Regenesys Business School 6

12 Please ensure that you order your textbook well in advance to ensure that you do not delay the commencement of your studies for this module. It is highly recommended that you order and purchase all your textbooks at the beginning of the year, immediately after registration. 5.3 RECOMMENDED MULTIMEDIA CommLab India. 2010, Multi-cultural team management [video clip], wxch287ws (accessed 13 November 2013). How to get Motivated, 2011, Employee motivation is essential to success [video clip], (accessed 15 November 2013). Hung, S. 2010, Conflict styles [video clip], (accessed 15 November 2013). LearningRxcom. 2010, Increase Brain Power How to work out your brain and get smarter [video clip], (accessed 12 November 2013). Singh, D. n.d, Communication skills [slides], (accessed 14 November 2013). Susanbuseducation, 2008, How to do effective performance appraisals [video clip], (accessed 13 November 2013). Taylor, A. 2011, Human Resource Management functions [video clip], (accessed 12 November 2013). TrainingPoint, 2010, It s all about culture what is corporate culture? [video clip], (accessed 13 November 2013). Regenesys Business School 7

13 5.4 ADDITIONAL SOURCES TO CONSULT As a higher education student, you are responsible for sourcing additional information that will assist you in completing this module successfully. Below is a list of sources that you can consult to obtain additional information on the topics to be discussed in this module: Emerald: NetMBA: MindTools: Brunel Open Learning Archive: ProvenModels: 12manage.com: Alliance Online: The Free Management Library: The Charity Village: This is an online database containing journal articles that are relevant to your modules. Please refer to the attached Emerald manual to assist you to download required articles. Information on how to access Emerald is provided to you in your Academic Handbook. You will receive access to the database once you register as a student. This is one of several web addresses that provide a selection of MBA constructs and discussion. It is one of the better of these addresses. MindTools.com is a very useful source of ideas, constructs, management models, etc. with even more useful commentary and description. A Brunel University support-site that provides an easily accessible library of ideas, concepts, constructs techniques, tools, models, etc. ProvenModels' Digital Model Book presents digitalised management models categorised in a clear, consistent and standardised information structure to improve the usability and reusability of management literature. Management models are important generalisations of business situations when applied in context and are powerful tools for solving business issues. This is a website on which one can access numerous models as well as global comments on the models and principles. This could also serve as a place where you could voice your ideas and get feedback from all over the world. The Alliance for Non-profit Management's general introduction to strategic planning is built around 15 questions that cover just about all aspects in brief. (Click on Strategic Planning ) The Free Management Library can be used to improve your organisation, and for your own personal, professional and organisational development. This is by far the most comprehensive overview of all aspects of strategic planning covering all stages of the process. A series of twelve very short articles, by Ron Robinson, an independent Canadian consultant, appeared on Charity Village between November 2001 and October These articles are refreshing in that they do not advocate a one best way for all types of non-profit organisations. They discuss various way of approaching the strategic planning process. There are many more sites and articles available that can help you to successfully complete this module. You are encouraged to post the website addresses or URLs of any additional interesting sites that you come across on the Regenesys Learning Platform. In this way, you can assist other student s to access the same wonderful information that you have discovered. Regenesys Business School 8

14 A word of caution not all information available on the Internet is necessarily of a high academic standard. It is therefore recommended that you always compare information that you obtain with that contained in accredited sources such as articles that were published in accredited journals. 6. LEARNING OUTCOMES Upon completing this course, participants should: Define human resource management terminology, concepts and principles. Understand factors contributing to the successful management of people in the work environment. Identify relevant legislation pertaining to human resource management. Understand group dynamics in the work environment. Know the recruitment and selection process. Discuss the purpose, principles and processes of effective performance appraisal. Understand theories of motivation in the context of the work environment. Understand the principles and processes of conflict management. Describe the principles of emotional intelligence for organisations. Know the important role that organisational culture and reward systems perform in an organisation. Regenesys Business School 9

15 7. CONTENT SCOPE AND LEARNING GUIDANCE A number of topics will be covered to assist you in successfully achieving the learning outcomes of this module. It is important to study each of these sections to ensure that you expand your knowledge in the subject and are able to complete the required assessments. The sections that will be dealt with include: Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11 Section 12 Human Resource Management Fundamentals Introduction to Human Behaviour Overview of the Legislative Framework Human Resource Planning Recruitment, Selection And Induction Effective Team Management Effective Communication Staff Development and Training Performance Appraisal Motivation Conflict Management Organisational Culture and Rewards A more detailed framework of what is required for each of these topics follows under each section heading. A number of questions to probe discussion and guide you towards comprehension and insight are also provided. The timetable under each section heading provides guidance on the time to be spent to study each section. It is recommended that you follow the given timetable to ensure that you spend the appropriate amount of time on each section. Following the timetable will ensure that you have covered the required sections relevant to each assignment and have appropriate time to prepare for the examination. Regenesys Business School 10

16 7.1 HUMAN RESOURCE MANAGEMENT FUNDAMENTALS Timeframe: Learning Outcome: Recommended reading: Multimedia: Section overview 16 hours Define human resource management terminology, concepts and principles. Understand factors contributing to the successful management of people in the work environment. Abdullah, H. 2009, Definitions of HRD: Key concepts from a national and international context, European Journal of social sciences, (10) 4, Taylor, A. 2011, Human Resource Management functions [video clip], (accessed 12 November 2013). It is imperative to understand the human resource environment to ensure the effective management of human resources. The additional readings provide an introduction to human resource management. This section aims to explain what human resource management (HRM) entails and what would be expected of a human resource manager. It also puts some light on how the science of human resource management developed and the different skills needed to effectively run the human resource department Introduction Human Resource Management involves all activities concerned with linking employee-related tasks to the strategy of the organisation in order to achieve the overall business goals. HRM encompasses four main disciplines that will all be discussed in this Study Guide. They are: To reach and exceed the expectations of management and the organisation. To align human resource strategies, policies and objectives to the organisations overall strategy. To innovate and develop methods to improve efficiency and effectiveness for human resources. Thereby adding more value to the organisation. To achieve employee loyalty to the organisation and its values, goals and objectives. (Tutor2u.com, 2013) Questions 1. Define human resource management in your own words. 2. Why do you think human resource management is important for organisations? Regenesys Business School 11

17 7.1.2 Define the Concepts The functions of the Human Resource Manager have changed drastically over the last two decades. Having been excluded from participating actively in business decisions for most of its existence, the current trends are to involve the Human Resource (HR) department to ensure efficiency and effectiveness within the organisation. From the 1990s, businesses have taken a more strategic approach to human resource management so that they can deal with a different external environment characterised by: Continual Change Flux Of Structures (Webs To Networks And Matrices) Fierce Competition Global focus The following issues play a major role in shaping human resource management strategies: An increase in cross-border employment A fully diversified workforce Fewer organisations as a result of continued mergers and acquisitions The use of just-in-time professional workers An increase in the outsourcing of administrative functions More innovative compensation practices A stronger focus on careers and self-fulfilment An increasing awareness of employees as assets Telecommunications and other forms of flexible work being widely introduced Increased team playing including in a virtual environment Human Resource Management has been defined in many ways. Human resource management - involves the productive use of people in achieving the organisation's strategic business objectives and the satisfaction of the individual employee's needs. (Reward Management Associates, 2001) Human Resource Management (HRM) is the function within an organisation that focuses on recruitment of, management of, and providing direction for the people who work in the organisation. Human Resource Management can also be performed by line managers. (Heathfield, 2012) Human Resource Management is the organisational function that deals with issues related to people such as compensation, hiring, performance management, organisation development, safety, wellness, benefits, employee motivation, communication, administration, and training. (Heathfield, 2012) Regenesys Business School 12

18 Human Resource Management consists of three pertinent notions: humans, resource and management: Human refers to the people who the business relies on for existence. The business cannot function optimally without them. The people in the organisation are often referred to as the human capital of the organisation. Resources refer to assets or something that belongs to the organisation. In the modern era, the skills and competencies of the employees belong to the business which makes them the human resources of the organisation. Management refers to the planning, organising, leading and controlling of the resources at your disposal. As in this concept the humans are seen as assets, they need to be planned for, controlled, lead and organised in such a manner that the business achieves its strategic vision and objectives. The article below provides you with an overview of different definitions of Human Resource Management from an international perspective: Abdullah, H. 2009, Definitions of HRD: Key concepts from a national and international context, European Journal of social sciences, (10) 4, Fundamentals of Human Resource Management Now that you understand the concept of HR management, we will have a look at what HR does in the business world. Before we can do this let us look at the history of the discipline. Background to HR management The development of the theory of HR management started in the early twentieth century. Frederick Taylor, an engineer, wanted to explore to improve workplace efficiency. His research led him to identify that the key element in improving manufacturing efficiency was labour. His research has been labelled and referred to as Taylorism. His ideas were formalised when another researcher, Elton Mayo, realised that workers are more productive when they are attentive and engaged. Further psychological research done by Abraham Maslow, Kurt Lewin, Frederick Herzberg and David McClelland formed the basis of this new applied discipline (Nayad, 2011). After the Second World War, people were more interested in human rights and self-actualisation. This resulted in several laws written to protect employees as well as an increased need for employees who deal only with personnel issues (Nayad, 2011). In the 1960s personnel managers were criticized for having poor negotiation skills in dealing with unions. This gave way to the expansion of personnel management responsibilities as well as to increase the importance of these employees (CIPD, 2012). Regenesys Business School 13

19 During the 1970s social science techniques such as motivation, organisational behaviour, selection, testing and training were becoming part of the responsibilities of personnel management (CIPD, 2012). The 1980s saw the term human resource management born. This term implied that the employees of the organisation were now seen as an asset (CIPD, 2012). Today, HR s functions are strategic in nature and employers understand that their employees are not only assets but should be termed as the human capital of the organisation as they can also be a source of revenue (CIPD, 2012). Roles and responsibilities of the Human Resource Manager Mayhew (2012) lists the responsibilities of an HR manager as follows: Compensation and benefits management Training and development management Employee relationship management Recruitment and selection management Overall management responsibilities (which includes reporting, performance management and so on) Functions of an HR department The functions of the human resource department are reflected in Figure 1. The model indicates that the functions of the human resource department are linked and can also be interlinked. The human resource process starts with the planning of the human resources. After strategic planning, needs and positions are identified. The human resource department will start by drawing up a job description and a job profile. Then they will recruit and select, interview, appoint, induct, support, evaluate, mentor and coach, compensate and overall take care of the employee to ensure that the individual performs to achieve the overall objectives of the organisation. This in short is the human resource functional cycle. Regenesys Business School 14

20 Figure 1: Functions of the Human Resource Department Human Behaviour Human Resources support and systems Human Resources Strategy Employee Wellness Human Resources Planning Leadership and Emotional Intelligence Recruitment and Selection Change Management Performance Management Negotiations and Conflict Management Diversity Management Staff Development and Training The clip below discusses the Human Resource Management functions: Taylor, A. 2011, Human Resource Management functions [video clip], (accessed 12 November 2013). Regenesys Business School 15

21 7.1.4 Success and Failure Factors of Human Resource Management The management of human resources are possibly one of the most challenging aspects of managing an organisation. Our ability to think independently, feel and express emotions, rationalise issues and inquire about our reality are some of the elements that make humans special. However, these are also the very factors that might make it difficult for managers to manage people. Many managers cannot fathom why projects or actions fail even though they had the best action plan in place, spent hours developing perfect Gantt charts and budgets, ensured that all the policies are aligned to the plans, and delegated tasks, etc. To make matters worse; despite the managers hard efforts she/he is accused of being autocratic/ bureaucratic/ nepotistic/ rigid/ unapproachable, etc. The analysis of the success and failure factors of managing human resources is extremely complex as it depends on the nature, context and inter-relationship between the action, project, team and institution. The following are some of the major causes of human resource management failures categorised into internal and external factors. The opposite of these failure factors reflect the success factors of people management. Success factors of people management will be discussed further throughout this study guide. Internal HRM failure factors may include: Lack of political/ top management commitment and support to people development Leadership skills and styles Lack of HR planning Lack of HR management skills, knowledge and experience Inefficient and obsolete management systems Finance: budget not linked to activities, centralised, slow, not supportive of HR development Poor reward/ incentive system Inadequate performance management processes Information and communication Organisational culture, commitment, passion for work, work culture and ethics, power struggles and politics High staff turnover Lack of motivation and job satisfaction Personal problems Regenesys Business School 16

22 External HRM failure factors may include: Financial constraints Bureaucracy/ organisational structure/ red tape/ inflexibility Economy (inflation, etc.) Political factors (instability, tribal/racial tensions, etc.) Difficult stakeholders (unions, clients, etc.) Policy changes Staff attrition to competitors Recap Questions 1. Refer to the definitions in this section. Compare these definitions and develop your own definition of human resource management. 2. Explain the different elements of the key roles of a human resource manager. 3. HR issues are the sole responsibility of the HR department. Argue this statement. 4. Refer to the above points on the failure factors of human resource management. Unpack five internal and external failure factors of human resource management by explaining these factors in more detail. Regenesys Business School 17

23 7.2 INTRODUCTION TO HUMAN BEHAVIOUR Timeframe: Learning Outcome: Multimedia: Section overview 8 hours Understand factors contributing to the successful management of people in the work environment. LearningRxcom. 2010, Increase Brain Power How to work out your brain and get smarter [video clip], (accessed 12 November 2013). People are very complex and different. To understand and to be able to predict how they would react, it will be easier if we understand how human behaviour works. This section focuses on issues that make people different, so that managers and HR managers realise the complexity of managing people Introduction Understanding human behaviour will assist human resource managers to control the outcome of situations that arise in the workplace. People, by nature, are all different, with varying values, morals, histories, and beliefs. Studying human behaviour sheds light on how to successfully manage people in a work environment to keep them motivated and working efficiently and effectively towards the organisations and their own personal goals HR links to Behavioural Science Behavioural science is the study of the behaviour of humans. It includes disciplines like Psychology, Sociology, Anthropology, History, Economics, and Political science. These disciplines study the interactions and activities of humans in their environments. The elements of behavioural sciences are embedded into Human Resource Management in the following way: The organisation can be seen as a socio-technical system Employees are individuals with personalities which are to be managed Employees are motivated by their needs Employees work in teams within a specific environment and using specific processes These disciplines are often applied in the study of organisational behaviour, customer behaviour, and employee behaviour in the workplace. As HR managers are expected to manage the human resources of their organisation, it is therefore important that they understand human behaviour. Regenesys Business School 18

24 7.2.3 Four Aspects of Individuals When one works with people, there are four important aspects that one has to take into account. These are discussed in Table 1 (Mayor, 2012). Table 1: Four aspects of individuals Physical aspect Intellectual aspect Emotional aspect Spiritual aspect This includes your body, your level of health and fitness, your ability to do things and the contact that you make with other people. Body language is also something that one would include as a physical aspect. Physical intelligence involves making appropriate decisions and choices that will be of benefit to one s body. When we look at the intellectual side of a human, one takes into account the thinking process of individuals. This aspect involves being able to think critically, analyse, problem solve, synthesise, meta-analyse and also process emotions. It is crucial that we develop awareness about our thoughts because these thoughts affect our behaviour what we think, we become. Positive thoughts will tend to result in positive behaviour and negative thoughts will generally result in negative behaviour. This aspect refers to our emotions or feelings. It is very important that one is in touch with one s feelings in order to have a deeper understanding of oneself. It is also important to know what other people are feeling and to respond appropriately to how they are feeling. Emotions can also be referred to as a feeling state (including physiological responses and cognitions) that convey information about relationships. For example, happiness is a feeling state that also conveys information about a relationship feeling comfortable with the person. Similarly, fear is a feeling state that conveys information about a relationship perhaps the urge to flee from other person (Mayor, 2012). Spirituality refers to living according to virtuous or positive values and being guided by an ultimate purpose. Spirituality also involves feeling connected with others, the world and the Universe. There is a deep realisation that if you hurt others, one ultimately hurts oneself, because we are all interconnected. Spirituality also entails being authentic where there is alignment between one s inner and outer experience. Spiritual intelligence enables us to heal ourselves and make ourselves whole. (Mayor, 2012) It is important to note that these aspects of an individual constantly influence one another in an intricate manner. For example, if your work is not aligned to your ultimate purpose and core values (spiritual level), then it might make you feel frustrated and resentful in your job (emotional level) because you are not expressing your full potential and talents (mental level). This might influence your diet where you resort to eating unhealthy foods and stop exercising (physical level), which will make you feel even worse about yourself, and affect your sense of self. It is therefore important to ensure that you take care of each of these aspects so that you can live a balanced and harmonious life. All these aspects should therefore be aligned as illustrated in Figure 2. Regenesys Business School 19

25 Figure 2: Four intelligences Emo-onal Intellectual Individual Spiritual Physical Perception Perception is an impression that one has of a situation. Our worldviews or mental models influence our perceptions. Perceptions refer to the mental processes used to interpret, give meaning to and understand our internal and external environments (Swanepoel, Erasmus, and Schenk, 2009: 76). People see things differently and therefore perceptions are subjective. Our behaviours and attitudes are greatly influenced by the perceptions we have of people or experiences. For example, some people might perceive women to be excellent managers because they have better emotional intelligence skills. However, others might feel that women managers are aggressive and will stop at nothing to get what they want. Managers therefore have to be extremely careful that their perceptions and the perceptions that their staff have of others do not cloud their opinion and result in the unfair treatment of other staff Personalities Personality refers to the way in which the biological, physical, social, psychological and moral traits of an individual are organised into a whole, and also to the relatively stable set of behavioural patterns which flow from the dynamic interaction between the individual and his or her environment in a particular situation (Swanepoel, Erasmus and Schenk, 2009: 81). Personality therefore involves aspects of emotions, interests, attitudes, values, and mental behaviours that have been influenced by our genetics and environment (Swanepoel, Erasmus and Schenk, 2009: 80). Personality does influence the work environment in that people with a particular personality will generally tend to find work that matches their personality. For example, a person who is very Regenesys Business School 20

26 creative, talkative and enjoys interacting with people will generally prefer a career in marketing than working in a laboratory as a scientist. In certain jobs, personality can have an influence on the ability the person has to effectively perform her/ his job. This is particularly apparent of jobs that require extensive direct contact with others, such as sales, public relations work, etc. (Swanepoel, Erasmus and Schenk, 2009: 81). A person with a more extroverted personality will generally be more effective in a sales position than someone who is more introverted Cognitive Abilities Cognitive abilities reflect how we understand and act in the world (Michelon, 2011). It is further described as abilities, skills, or processes which are brain-based and influences the way in which we carry out tasks, whether simple or complex. They influence problem-solving skills and the employees ability to pay attention. According to Michelon (2011), cognitive abilities include the following: Perception Attention Memory Motoric abilities (the ability to mobilise muscles and manipulate objects) Language skills Visual and spatial processing Flexibility Decision-making Working memory Emotional self-regulation Sequencing Cognitive abilities can be improved and exercised. Watch the clip below. It is a simple cognitive exercise to show you how you could exercise your brain. LearningRxcom. 2010, Increase Brain Power How to work out your brain and get smarter [video clip], (accessed 12 November 2013) Attitude An attitude refers to a positive or negative feeling a person has towards a particular person, issue, experience, or object (Erasmus, et al. 2007: 82). An attitude is a complex mental state involving beliefs, feelings, values, and dispositions to act in certain ways. Regenesys Business School 21

27 Employee attitudes are important to note for two reasons (Erasmus, et al. 2007: 83): Knowing whether an employee will respond positively or unfavourably can provide a basis for job design decisions. Positive features should be reinforced and negative factors improved or removed, where possible Develop Yourself We all have freedom to choose between things in life. You have a choice to wake up in the morning, and feel good and positive about the day. Alternatively, you can also wake up and decide that you want to be miserable and then the whole day would be miserable. This has a lot to do with attitude. Having a positive attitude requires you to focus on self-development. This involves developing aspects of yourself that will make you a better person, such as: determining your sense of purpose, developing self-confidence, and acquiring the skills, attitudes and knowledge to become a better person. Developing yourself involves being able to self-reflect, where you harness your strengths and overcome your weaknesses. The ability to develop yourself is critical for the workplace because it ensures that you are open to new ideas and growth. This process often requires us to rise above our egos, especially when someone criticises us, and to extract the valuable lessons that have been shared. Recap Questions 1. Explain the four critical aspects of an individual in your own words. 2. Why is it critical for a manager to understand these four aspects of an individual when managing people? 3. Why are all these factors important for managers? Give work-related examples to explain your points. Regenesys Business School 22

28 7.3 OVERVIEW OF THE LEGISLATIVE FRAMEWORK Timeframe: 18 hours Learning Outcome: Identify relevant legislation pertaining to human resource management Recommended reading: Section overview Recommended reading for students based in South Africa: o Basic Conditions of Employment Act, No 75 of 1997, Pretoria: Government publisher (accessed 14 November 2013). o Basic Conditions of Employment amendment, 2012, (accessed 14 November 2013). o Constitution of the Republic of South Africa No. 109 of 1996, Pretoria: Government publisher (accessed 14 November 2013). o Department of Labour. n.d, Introduction to the Quality Council for Trades and Occupations (QCTO), (accessed 12 November 2013). o Employment Equity Act No. 55 of 1996, Pretoria: Government publisher (accessed 14 November 2013). o Labour Relations Act, No. 66 of Pretoria: Government publisher (accessed 14 November 2013). o Labour Relations Amendment Bill, 2012, Pretoria: Government Publisher (accessed 12 November 2013). o Skills Development Act, No 97 of 1998, Pretoria: Government publisher (accessed 14 November 2013). o Skills Development Amendment Act, No 26 of Pretoria: Government publisher (accessed 14 November 2913). Appendix 1 The purpose of this section is to review the key labour legislations that have impacted the workplace and influenced human resources in organisations Introduction This section requires students to have an understanding of their HR Legislative Framework. Any manager must be aware of the laws governing labour in order to manage efficiently. Because legislation varies across contexts and countries, students are required to independently identify relevant legislation that affects the human resource management of your organisation. Regenesys Business School 23

29 If you are an international student, you will need to research your country s legislative framework Key HR Legislation Each country has their own set of relevant HR legislation to guide the relationship between employer, employees, and government. You are required to identify key HR legislation that regulates how human resources are managed in your country. The following areas may guide your search: Your country s Constitution Legislation related to labour relations Legislation related to conditions of service Legislation related to training and development Legislation related to employment equity Please refer to Appendix 1 for a further discussion on legislation relevant to South Africa. Recap Questions 1. List and summarise the key legislation that impact on the effective management of human resources in an organisation. 2. How do these legislation impact on decisions and processes in the human resource department? Regenesys Business School 24