BACHELOR OF BUSINESS ADMINISTRATION Human Resource Management I

Transcription

1 BACHELOR OF BUSINESS ADMINISTRATION Human Resource Management I Contact details: Regenesys Business School Tel: +27 (11) Fax: +27 (11) [email protected]

2 Version Control 5.4_f Date of Publication: January, 2014 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 21 January _f FVS Updating template 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 BOOKS RECOMMENDED MULTIMEDIA ADDITIONAL SOURCES TO CONSULT LEARNING OUTCOMES CONTENT SCOPE AND LEARNING GUIDANCE HUMAN RESOURCE MANAGEMENT FUNDAMENTALS DEFINE THE CONCEPTS FUNDAMENTALS OF HUMAN RESOURCE MANAGEMENT SUCCESS AND FAILURE FACTORS OF HUMAN RESOURCE MANAGEMENT INTRODUCTION TO HUMAN BEHAVIOUR 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 JOB ANALYSIS JOB DESCRIPTIONS JOB SPECIFICATIONS HUMAN RESOURCE FORECASTING THE HUMAN RESOURCE PLAN RECRUITMENT, SELECTION AND INDUCTION THE RECRUITMENT AND SELECTION PROCESS RECRUITMENT AND SELECTION ACTIVITIES SELECTION THE POST-INTERVIEW PROCESS INDUCTION EFFECTIVE TEAM MANAGEMENT UNDERSTAND GROUPS THE IMPORTANCE OF TEAMS THE STAGES OF TEAM DEVELOPMENT INTERPRETING AND MANAGING GROUP DYNAMICS STATEMENTS TO MANAGE GROUP BEHAVIOURS EFFECTIVE COMMUNICATION VERBAL COMMUNICATION NON-VERBAL COMMUNICATION STAFF DEVELOPMENT AND TRAINING IDENTIFICATION OF TRAINING NEEDS DIFFERENT METHODS OF TRAINING... 58

4 7.8.3 DEVELOP AND IMPLEMENT A TRAINING PLAN PERFORMANCE APPRAISAL DEFINE PERFORMANCE APPRAISAL APPRAISAL PROCESS MOTIVATION MOTIVATION EMPLOYEE MOTIVATION THEORIES OF MOTIVATION EMPLOYEE MOTIVATION THEORIES STRATEGIES TO MOTIVATE EMPLOYEES CONFLICT MANAGEMENT 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 WHAT IS AN ORGANISATIONAL CULTURE? CULTURAL TYPOLOGIES CHARACTERISTICS OF AN ORGANISATION S CULTURE MAINTAINING A CULTURE ROLE OF REWARDS REFERENCES APPENDIX 1: OVERVIEW OF SOUTH AFRICAN HR LEGISLATION INTRODUCTION 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 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 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... 85

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. Many of the concepts, principles and processes covered in this module will be examined in much greater detail in your second and third years of study. 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. RECOMMENDED READING Where applicable, the following articles and books 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, Technology studies in Education, (assessed online 13 September 2012). Department Higher Education and Training. 2010, Framework for the National Skills Development Strategy 2011/ /16, (assessed online 15 September 2012). Department of Labour. n.d, Introduction to the Quality Council for Trades and Occupations (QCTO), (assessed online 12 September 2012). Frank, L. n.d, Effective Communication. Bulletin #6103. Group works. Government of Newfoundland and Labrador. 2008, Human Resource / workforce planning and departmental planning A Guide to integration and alignment, (assessed online 13 September 2012). Heathfield, S. 2012, How to change your culture: organizational culture change, (assessed online 7 May 2012). Regenesys Business School 5

11 Lee, S. 2012, The Five Stages of Team Development, < Development&id= (assessed online 13 September 2012). Neill, J. 2007, Group Dynamics, processes and development, (assessed online 13 September 2012). Serrat, O. 2009, Understanding and developing emotional intelligence, Asian Development Bank, Volume 49. Shanks, N.H. n.d, Chapter 2: Management and motivation, (assessed online 15 September 2012). SHRM HR Content. 2011, Chapter 8: Performance Management and appraisal, Part III: Developing and Managing, n.d, (assessed online 13 September 2012). 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. 5.1 RECOMMENDED BOOKS The following books are recommended for this module: Havenga, W., Kleynhans, R., Markham, L. & Van Aswegen, S. 2012, Introduction to Human Resource Management, Fresh perspectives, 2nd edition, Pearson: Cape Town. 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. 5.2 RECOMMENDED MULTIMEDIA CommLab India. 2010, Multi-cultural team management, (accessed online 13 September 2012). Department Higher Education and Training. 2010, Framework for the National skills development strategy 2011/ /16, (accessed online 13 September 2012). Edenborough, R. 2005, Assessment methods in recruitment, selection and performance, d%20performance.pdf (accessed online 13 September 2012). Regenesys Business School 6

12 Employee motivation is essential to success. 2011, (accessed online 15 September 2012). FASSET. 2004, Skills Planning, (accessed online 15 September 2012). How to do effective performance appraisals. 2008, (accessed online 13 September 2012). Hung, S. 2010, Conflict styles, < (accessed online 15 September 2012). It s all about culture what is corporate culture? 2010), (accessed online 13 September 2012). Job description / person specification examples using SCQF. n.d, (accessed online 12 September 2012). LearningRxcom. (2010) Increase Brain Power How to work out your brain and get smarter, (accessed online 12 September 2012). Performance appraisal. 2005, < (accessed online 15 September 2012). Singh, D. n.d, Communication skills, (accessed online 14 September 2012). Taylor, A. 2011, Human Resource Management functions, (accessed online 12 September 2012). Regenesys Business School 7

13 5.3 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: Be familiar with human resource management terminology, concepts and principles Have an understanding of key people management success and failure factors Explain why people behave differently Identify relevant legislation pertaining to human resource management Explain job analysis as part of human resource planning Know the process of recruiting and selecting suitable candidates for employment Define and compare groups and teams Identify the stages of team development Interpret and manage group dynamics Describe the process of communicating professionally and persuasively Identify training needs and skills shortages Explain the steps to develop and implement a training plan Explain the principles and processes of effective performance appraisal Explain theories of motivation Explain the principles and processes to manage conflict situations effectively Explain the principles and relevance of emotional intelligence for organisations; and Examine the important role that organisational culture, and reward systems perform in the institution 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 2 hours Be familiar with human resource management terminology, concepts and principles Have an understanding of key people management success and failure factors Definitions of HRD: Key concepts from a national and international context. (Abdullah, 2009). Human Resource Management functions (Taylor, A. 2011) 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 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; And 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; and Increased team playing including in a virtual environment. Regenesys Business School 11

17 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) 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: Definitions of HRD: Key concepts from a national and international context. (Abdullah, 2009) 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. Regenesys Business School 12

18 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). 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; and 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. Regenesys Business School 13

19 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 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. The clip below discusses the Human Resource Management functions: Human Resource Management functions (Taylor, 2011) Regenesys Business School 14

20 7.1.3 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. 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; and Personal problems. Regenesys Business School 15

21 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; and 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 16

22 7.2 INTRODUCTION TO HUMAN BEHAVIOUR Timeframe: 2 hours Learning Outcome: Explain why people behave differently Multimedia: Section overview Increase Brain Power How to work out your brain and get smarter. (LearningRxcom. 2010) 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 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; and 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 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). Regenesys Business School 17

23 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. (Source: 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 18

24 Figure 2: Four intelligences Emo-onal Intellectual Individual Spiritual Physical Perception Perception is an impression that one has of a situation. Our world views 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, & 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 & 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 & Schenk, 2009: 80). Regenesys Business School 19

25 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 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 & 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; and 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. Increase brain power how to work out your brain and get smarter. (LearningRX.com, 2010) 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 20

26 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. Or, 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 21

27 7.3 OVERVIEW OF THE LEGISLATIVE FRAMEWORK Timeframe: 8 hours Learning Outcome: Identify relevant legislation pertaining to human resource management Recommended reading: Recommended reading for students based in South Africa: o Basic Conditions of Employment Act, No 75 of Pretoria: Government publisher o Constitution of the Republic of South Africa No. 109 of Pretoria: Government publisher. o Introduction to the Quality Council for Trades and Occupations (QCTO). (Department of Labour. n.d.) o Employment Equity Act No. 55 of Pretoria: Government publisher o Labour Relations Act, No. 66 of Pretoria: Government publisher. o Skills Development Act, No 97 of Pretoria: Government publisher o Skills Development Amendment Act, No 26 of Pretoria: Government publisher Section overview Please refer to 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. If you are an international student, you will need to research your country s legislative framework. Regenesys Business School 22

28 7.3.2 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. Many countries possess HR legislation in the following areas: Conditions of service or working conditions; Discrimination; Union recognition; Health and safety; Training and development; Equal opportunity; and Contracts. 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 23

29 7.4 HUMAN RESOURCE PLANNING Timeframe: 4 hours Learning Outcome: Explain job analysis as part of human resource planning Recommended reading: Multimedia: Section overview Human Resource / workforce planning and departmental planning A Guide to integration and alignment. (Government of Newfoundland and Labrador. 2008) Job description / person specification examples using SCQF. THE%20SCQF.pdf Human resource planning is the process of forecasting an organisation s human resource needs based on the organisation s goals and strategy so that suitably qualified employees are sourced and developed. This section provides you with an overview of the process of HR planning Introduction HR planning takes place in three steps. These steps are illustrated in Figure 3. Step 1: Forecast staffing needs Figure 3: Steps in HR planning Step 2: Evaluate supply Step 3: Balance supply and demand HR plan (Source: Lorette, 2012) Forecast staffing needs Evaluating the staffing needs of an organisation involves a prediction of how many employees the organisation will need to achieve the goals and objectives of its strategic plans. Regenesys Business School 24

30 Factors that one should consider include: Economic situation of the country; The organisations financial state; The demand of the product or services the organisation offers; The current staff retention rates; and The current staff turnover rates. Evaluate supply This step involves an evaluation of an organisation s internal staff as well as external staff. The external evaluation includes an assessment of the demographics of the workforce environment of the organisation. This includes evaluating the mobility, education and unemployment rate of the environment as well as the laws and regulations that govern the area. The internal staff evaluation should include a calculation of the current skills of the organisation and the skills that will be needed for the future success of the organisation. This is done by conducting a skills audit. This step will determine the types and number of employees needed for the organisation. Balance supply and demand The last stage of the HR plan is to decide how to balance the demands identified in the first step and the supply needed which is determined in step two. For example, if you do not have the right type of employees for the organisation, you will need to develop a recruitment and selection plan. You should also determine the full-time and part-time needs of the organisation Job Analysis The first step of HR planning is to determine the nature of the work being done. This involves the process of job analysis. A job analysis is the process of gathering information pertaining to a specific job. The information gathered is important to develop a job specification and is important in many of the human resource functions, such as recruitment and selection, performance appraisal and training and development plans. A job analysis can be described as: a process used to identify and determine in detail the particular job duties and requirements and the relative importance of these duties for a given job. Job Analysis is a process where judgements are made about data collected on a job (HR Guide, 1999). Regenesys Business School 25

31 When conducting a job analysis, the following methods could be used (HR Guide, 1999): Job classification systems; Interviews; Expert panels; Structured questionnaires; Task inventories; Checklists; Observation; and Work logs. When jobs are analysed, information about the areas discussed in Table 2 should be collected: Table 2: Aspects of job analysis Duties and tasks Environment Tools and equipment Relationships Cognitive needs The tasks and activities of the job include what the employee should perform in order to fulfil the requirements of the position. These include the frequency of the activities, the effort needed, the skills needed, the complexity of the activities, the equipment needed to complete the job and the standards expected of the job. The work environment includes the physical requirements of the job. The environment could be dangerous or hostile (for example, an employee working in a radioactive laboratory). Some jobs require that employees wear protective clothing, for example. This must be specified in the job analysis. The ability to work with specific equipment will also be included in the job analysis. This aspect includes the required relationship needed to complete the job activities. These relationships could include internal and external relationships. The knowledge, skills and abilities needed to perform the job is listed in the job analysis. The job analysis only states the minimum requirements of the job. (Source: HR Guide, 1999) Job Descriptions The information retained in the job analysis aids in the development of job descriptions. A job description is a written document that describes a specific job within the organisation. A job description usually lists the following (HR-exec.com, n.d): Job functions; The techniques needed to conduct the job; The specific material needed to conduct the job; The traits needed to be successful at the job; and, The physical demands of the job. Regenesys Business School 26

32 The job description has no specific format but commonly contains the following: Job title; Job location; Name of the jobholder; Who the person reports to; Overall purpose of the job; Nature of the appointment; Frequently performed duties; Working conditions; Key performance areas; Competencies; Knowledge and skills required to perform the job; Date of the document; and Signature to make it authentic. A simple example of a job description: Job Title: Telephone Operator Reports to: Supervisor Location: Front Office Hours: Full time Purpose of the job: To assist with answering the telephone, to direct the call to the correct recipient and to take messages when needed. The candidate might also be expected to assist clients when they enter the company and to direct them to the relevant person. Main Duties: 1. To operate the switchboard 2. To direct calls to the relevant people 3. To take down messages and deliver to the relevant people 4. To give information to clients or to find assistance for them 5. To send and receive faxes 6. To receive clients at the front office 7. To give guidance and support to the clients 8. To perform other administration functions I have read this document and I accept the above conditions SIGNED at this day of 20 Position holder: Supervisor: Regenesys Business School 27

33 7.4.4 Job Specifications The job specification contains the personal qualifications an employee possesses to perform the duties and responsibilities stated in the job description. Job descriptions usually reflect the knowledge, skills, abilities, education, experience, specialised training, personal traits and manual dexterity of the person required to perform the job effectively. The job specification is more technical. You can access a template for a job specification by visiting the hyperlink below: Job description / person specification examples using SCQF (n.d) SCQF.pdf Human Resource Forecasting Step Three of human resource planning involves identifying the number of employees who will be needed in the future. This is referred to as human resource forecasting and planning. Forecasting involves the activities discussed in Table 3. Table 3: Human Resource Forecasting Analyse the job market Evaluate organisational needs Calculate the turnover rate of the organisation Estimate HR needs The HR manager will have to analyse the economic and population issues that affect employment. Managers have to analyse factors like the graduates entering the job market, the economic stability of the country, the unemployment rate and the talent available in the job market. With the effects of globalisation on organisations, HR managers would often have to expand their search to the global job market. The needs of the organisation will be stipulated in the strategic plan. An organisational needs analysis will have to be conducted. This involves analysing the current employees, their performance, their abilities and their career aspirations. The HR unit will have to calculate the need for creating new positions in the organisation as well as the possible employees that will leave the organisation. These employees could include retirees, de-motivated and unhappy employees or employees that underperform. This stage of forecasting involves identifying existing talent in the organisation. The training and development opportunities of employees should be considered and estimated. Employee strengths, weaknesses, abilities and experience should be measured against the desired human resource needs of the organisation. (Source: Keefer, 2012) Regenesys Business School 28

34 7.4.6 The Human Resource Plan The final step of human resource planning culminates in the development of a human resource plan. The purpose of the plan is to ensure that the present human resource requirements in the organisation are suitable for its current and future needs. It is critical that the human resource plan is directly interlinked to the organisation s strategic plan. Read more about Human Resource Planning in the document hyperlinked below: Human resource / workforce planning and departmental planning a guide to integration and alignment. (Government of Newfoundland and Labrador, 2008) Recap Questions 1. Define human resource planning and list the three specific steps? 2. Examine the different methods that could be used to conduct a job analysis. Use a table to identify the advantages and disadvantages of each method. 3. Define job analysis in your own words and explain why it is important for an organisation? 4. What questions might you ask when doing a job analysis? 5. What is the purpose of doing human resource forecasting? 6. Explain what process you would follow when forecasting for an organisation. 7. Explain the factors to consider when forecasting for an organisation. 8. How would you gather information needed to compile a job analysis? 9. What is the purpose of developing a human resource plan and provide examples of what might be contained in the plan? Regenesys Business School 29

35 7.5 RECRUITMENT, SELECTION AND INDUCTION Timeframe: Learning Outcome: Multimedia: Section overview 5 hours Know the process of recruiting and selecting suitable candidates for employment Assessment methods in recruitment, selection and performance. (Edenborough, 2005) 0Selection%20and%20Performance.pdf Recruitment and selection forms a very important part of the human resource function. These processes are managed by strict legislation that underpins fairness and transformation. This section of the Study Guide reflects on the recruitment and selection of suitable candidates for employment The Recruitment and Selection Process Recruitment in common terms means searching as widely and as thoroughly as possible for people who might be suitable to fill vacancies in an organisation. Once you have found them they must be encouraged to apply for these vacancies. There is a distinction between internal and external recruitment. In large organisations external recruitment might involve global recruitment. Recruiting internationally is necessary when specific scarce skills are needed for specific functions within an organisation. It becomes more and more important for a company to have a policy that will underpin the rules and regulations of the company s recruitment and selection processes. The policies should incorporate the aspects of legislation regarding the process of what is fair and what is not Recruitment and Selection Activities The recruitment and selection process consists of: Updating job description and job specifications; Choosing the most suitable recruitment medium; Evaluating applications; Short listing; Interviewing and assessing; Selecting; Notifying; and Inducting In the previous section we have discussed the process of developing job descriptions and job specifications. Regenesys Business School 30

36 Choosing a recruitment method There are many recruitment methods to choose from. An HR manager will develop a recruitment strategy and apply for a recruitment budget. This will affect the recruitment method used. With that in mind, we will be discussing the methods of recruitment briefly in order to provide you with a brief overview. Recruitment can be done internally or externally. Internal recruitment is done from within the organisation. Employees are invited to apply for a position and the HR manager then follows the same route for appointment than they would if the applications were received from external candidates. External recruitment is done by inviting candidates from outside the organisation to fill a position. External recruitment is often more expensive than internal recruitment but it provides a larger range of candidates (tutor2u.com, 2012). The most popular external recruitment methods are discussed below. Newspaper advertisement The placement of advertisements form part of a recruitment policy as it dictates the sources that might be used to recruit. There is a distinction between: Written media such as newspapers, the internet, magazines and an organisation s bulletin boards; Recruitment agencies who do the advertising, preliminary interviews and short listing on your behalf; and Word-of-mouth people talk to people and inform them of the organisation s needs and positions available. A well thought out advertisement fundamentally influences the extent to which appropriate candidates apply for a required position. The advertisement should be a summary of all the details of the position. This includes the title, competencies and skills, qualifications, experience and the possible salary that would be offered to a successful candidate. It is important to note that the Employment Equity Act has stipulations regarding discrimination pertaining to recruitment and selection. Here we distinguish between unfair and fair discrimination. Unfair discrimination: This can be seen as factors that go beyond the inherent aspects of the job specification such as religion, race, gender, age, marital status, pregnancy, disability, language, sexual orientation and political opinion. Fair discrimination: This includes aspects such as candidates who are unsuited for the position. Job centres The Department of Labour provides resources for both the employee and employer. Their job centres have lists of candidates who are seeking employment. They also have vacant positions from different companies to assist employees with their search. Regenesys Business School 31

37 Recruitment agencies Recruitment agencies are companies that specialise in recruitment. These companies have a database of candidates and employers and try to match the job seekers with appropriate employers. The agencies can be very effective but they are also very expensive. They usually ask for a percentage of the employee s salary over a period of months as a fee for their service. Head hunting Head hunting works on the same principle as recruitment agencies except that they will target employed professionals for specific positions. The companies seeking an employer will contact the head hunter and s/he will search their database for the perfect match. The head hunter will not only look at job seekers, they will look at people who are already employed. This method is usually used for senior and executive positions. Online recruitment Specific recruitment websites are run by recruitment agencies. Companies pay the recruitment website to run their vacancies and any job seeker with an internet connection could apply for a position. Social recruitment Social recruitment is done using the social networks available. These networks include LinkedIn, Facebook and Google Plus. The recruiter will post the vacancy on the social network and candidates either apply via the network or are directed towards the company s intranet. (Adapted from: Recruiter.com, 2012) Evaluating applications This step is the initial evaluation of the applications received. Applications are sifted through to check whether they meet the minimum requirements of the job description. HR managers will create a checklist and assess the applications using this checklist. Some companies will receive hundreds of applications which need to be narrowed down for the next step in the process of recruitment and selection. The recruitment and selection plan will indicate the number of candidates that will be interviewed and assessed for the vacancy and the evaluation of applications will be narrowed down to that number Selection Short listing Short-listing is a process of checking and cross-checking the details of the candidates who applied for a position. Short listing can occur several times in the selection process, where you can short list candidates before they are interviewed and after they are interviewed. The intention of short listing is to reduce the number of candidates for consideration to only those who meet the specified criteria. Regenesys Business School 32

38 Interviewing and assessing The interview is still one of the most used methods for selecting appropriate employees. Companies will have a recruitment and selection policy which will indicate the process and procedure of recruitment and selection and also the interviewing and assessment of candidates. This is important as it is a reflection of a fair or unfair recruitment process. With this in mind, we will be discussing the generic approach to interviewing potential candidates. The interview process is illustrated in Figure 4. Figure 4: The Interview process Provisional selec-on interview Saves -mes and cost Determine minimum qualifica-on, training, interest, etc. General appearance is assessed and impressions are formed Applica-on form Must be designed to suit various types of jobs Meet organisa-onal needs LRA aligned Weigh-ng Tes-ng Psychological tests, personality tests Medical tests, skills test Managerial tests, physical & motor tests Performance tests Ap-tude tests : verbal ability, abstract thinking, etc Checking references Telephonic Faxed WriMen The interview and medical examina-on Telephonic Face- to- face Conference interview Panel interview Regenesys Business School 33

39 We all have been through some sort of interview process and know how frightening it can be. This is however the most important part of the recruitment and selection process. During this process the interviewer gets the opportunity to get to know the interviewee as well as for the interviewee to judge whether s/he will fit in the organisation and thrive in the culture of the organisation The post-interview process What happens after the interview? During the interview, the candidate is scored according to the questions asked and then the panel or interviewer decides to appoint the candidate or not. On appointment, the candidate and the Human Resource Manager will discuss the Contract of Employment. If you follow the hyperlink below, you will find a manual that explains different recruitment and selection methods in detail. Assessment methods in recruitment, selection and performance (Edenborough, 2005) Induction Induction is the process that takes place after the candidate(s) has been appointed and aims to introduce the newly appointed employees to all the people in the organisation. Once the successful applicant(s) have been notified and agreement has been reached on the start date then all the required paperwork in terms of the appointment must be completed ahead of this start date. Relevant parties including but not limited to managers, supervisors and team members should be notified of the appointment and start date. In some cases, planning for the arrival of the new appointee is minimal. However, in other cases it can be quite extensive. Consider the following in preparation of the arrival of the new employee: Induction programme; Work space (designated or shared work space); Work station (type of work area, i.e. desk versus production area); Equipment (range of equipment, i.e. telephone type(s), computer type, vehicle, tools, etc.); Stationery (pens, pencils, etc.); and Mentor and / or coach. What happens without an effective induction programme? New employees get off to a bad start and never really understand the organisation or their role in it. This may lead to poor integration into the team, low morale, loss of productivity and failure to work to their highest potential. Regenesys Business School 34

40 The role of HR in employee induction Although the induction of an employee may be the line manager s responsibility, the HR department is responsible for the company s induction policy and for developing the full range of induction programmes. The HR department is also responsible for reviewing and improving the induction process. Starting with the welcome and tour of the premises Ensure that when the employee arrives they are made to feel welcome. First impressions are lasting. The new employee should be shown where they will be working and the location of all facilities, health and safety pointers and work areas. Health and safety Consider the following in the interests of health and safety: Emergency exits; Evacuation procedures; First aid facilities; Health and safety policy; Accident reporting; Protective clothing; Smoking policy; and Specific hazards Introduction to colleagues A number of people are likely to be involved during an induction including: Their line manager; Those responsible for HR or training; The health and safety officer; and Trade union / employee representatives (if applicable). All relevant stakeholders should be part of the design and finalisation of the programme. Introduction to the job At the induction stage, the new employee will need to be taken through what their job entails and how this fits in with the rest of the business. Regenesys Business School 35

41 Office systems Ensure that the employee knows how to operate any office equipment they will be using and show them where everything is kept (e.g. office stationery). A specially-tailored induction process The majority of newcomers will follow generic induction procedures with some tailoring to meet specific needs. However, some newcomers may need to have a programme, which is tailored extensively to take account of their special circumstances. Workers with disabilities may have special needs in terms of access, using equipment and communicating with colleagues. You should also be sensitive to cultural or religious customs and make sure your induction process is not discriminatory. Recap Questions 1. What are the advantages and disadvantages of recruiting people from inside and outside an organisation? 2. Explain all the steps involved in the recruitment process and explain the importance of each step. 3. Explain the principles and steps involved in selecting a new incumbent? 4. Why is it important to induct a new employee? Regenesys Business School 36

42 7.6 EFFECTIVE TEAM MANAGEMENT Timeframe: Learning Outcome: Recommended reading: Multimedia: Section overview 8 hours Define and compare groups and teams Identify the stages of team development Interpret and manage group dynamics Teams in the workplace. (Barnett, 2003) The Five Stages of Team Development. (Lee, 2012). Stages-of-Team-Development&id= Group Dynamics, processes and development. (Neill, 2007) Multi-cultural team management. (CommLab India, 2010). Once a candidate is employed, the first stages of working for a company are becoming a part of a work team. In most work and social situations, people are placed in a group and required to work together to achieve a joint result. Depending on the types of people in the group, the experience can be positive or in some cases, rather negative. Working in teams and being able to get the maximum contributions of all members of the team is the core role of a team leader or manager. Having mastery of teams is a critical ingredient for successful outputs, projects and organisations. In order to better understand teams, it is necessary to first understand what they are. This section defines groups and teams, and examines the distinction between them. The importance of teams is also explored Understand Groups There are two types of group s namely informal groups and formal groups. These are discussed in Table 4. Table 4: Types of groups Informal Groups Formal Groups An informal group can either be an interest group or a friendship group. Interest groups are groups where members share a common interest (Du Toit, Erasmus & Strydom, 2010: 105). Friendship groups exist to satisfy a social need. Formal groups can be a command group or a task group. Command groups have a formal organogram and line of authority. Tasks groups are created to complete a specific task or project. (Source: Du Toit, Erasmus & Strydom, 2010: 105) Characteristics of a group Group size affects the performance of the group. If the group is too big it lends itself to social loafing ; a tendency of individuals to put in less effort when working in a group than when working individually. Group composition also influences performance. Status in groups can be formal or informal and are assigned by members of the group based on age, experience or social influence. Norms and standards also affect a group as norms can be positive or negative. Regenesys Business School 37

43 In groups, the formal leader is normally identified by a title. Sometimes the informal leader has more influence in a group. Cohesiveness is the standing together of the group. Groups versus teams Many people think that there is no difference between a group and team. However, literature will show that there is a clear distinction between a group and a team. As a manager or leader, it is important that you know what the similarities and differences are between groups and teams. We have all had at least one experience of being part of a group. Sadly, we are not all able to share glowing stories about how wonderful it is to work in a group. In fact, some people have had such horrific group experiences that the idea of instituting group-work in a more formalised way sends nervous shivers down their spine. Then, on the other hand, others would say that groupwork is the ideal method to get work done effectively and efficiently. How is it possible for people to perceive group-work in such polarised ways? This section is dedicated to unlocking the factors to why certain people have such wonderful experiences of groups, yet others have terrible experiences of working in groups, even when the conditions of group-work are similar in both cases. To put it in another way: How is it possible for one group to be high performing and produce dramatic results, whilst another group with the same number of people, doing a similar task with similar resources, is under-performing? Group behaviour has ranged from total chaos to dramatic success, but it is increasingly evident that groups enjoy their greatest success when they become more productive units called teams (Maddux, 1988:10). The above quotation explains partly how groups can become effective. The notion of teams is central to discovering why certain groups are successful and why others are not. Maddux (ibid.) defines a team as a group which becomes a more productive unit. The familiar saying of a team is greater than the sum of all its individual parts echoes similar sentiments about a team being different to a group. A team is able to yield far greater results than a group. Table 5 characterises the differences between groups and teams (Maddux, 1988: 10). Regenesys Business School 38

44 Table 5: Differences between groups and teams GROUPS Members think that they are grouped together for administrative purposes only. Individuals work independently, sometimes at cross-purposes with others. Members tend to focus on themselves because they are not sufficiently involved in planning the unit s objectives. They approach their job as simply hired hands. Members are told what to do rather than being asked what the best approach would be. Suggestions are not encouraged. Members distrust the motives of colleagues because they do not understand the role of other members. Differences in opinion or disagreements are considered as divisive. Members are cautious about what they say as they believe that real understanding is not possible. Game playing may occur and communication traps are set to catch the unwary. Members may receive good training but are limited in applying it to the job by the supervisor or other group members. Members find themselves in conflict situations which they do not know how to resolve. Their supervisor may put off interventions until serious damage is done. Members may or may not participate in decisions affecting the team. Conformity often appears more important than positive results. TEAMS Members recognise their interdependence and understand both personal and team goals are best accomplished with mutual support. Time is not wasted struggling over territory or seeking personal gain at the expense of others. Members feel a sense of ownership for their jobs and unit because they are committed to goals they have helped to establish. Members contribute to the organisation s success by applying their unique talent and knowledge to team objectives. Members work in a climate of trust and are encouraged to express ideas, opinions, disagreement and feelings openly. Questions are welcomed. Members practise open and honest communication. They make an effort to understand one another s point of view. Members are encouraged to develop skills and apply what they learn on the job. They receive the support of the team. Members recognise that conflict is a normal aspect of human interaction but they view such situations as an opportunity for new ideas and creativity. They work to resolve conflict quickly and constructively. Members participate in decisions affecting the team but understand that their leader must make a final ruling whenever the team cannot decide, or when an emergency exists. The goal is positive results, not conformity. Regenesys Business School 39

45 7.6.2 The Importance of Teams Teams, instead of jobs, have become the critical building block of future organisations. Teams and teaming are seen as one of the primary means of creating the high-performance, high-flexibility, and a high-commitment organisation, with self-managed teams as the pinnacle of the team-based organisation. The use of teams results in the following: Significantly more efficient operations, for example, a reduction in work cycle times, heightened responsiveness and flexibility, and on-going learning, and Significantly improved business and people outcomes, for instance, increased customer satisfaction, greater commitment to organisational goals, higher productivity, and enhanced quality of work life. Effective teams and teaming in organisations rest on three prerequisites (Stander, 2001: 199): Designing the organisation around teams which can take clear ownership of whole and meaningful pieces of work; Ensuring healthy and productive team functioning through proper team establishment; and Instilling a culture of continuous team learning and innovation. In other words: Within an organisation the success of the tasks to be executed rely heavily on the team to which the tasks are assigned, and the way in which the team works to carry these out. Teamwork can achieve higher efficiency and improvements for both the organisation and the people it serves. Effective teamwork requires an organisation that allows teams to take ownership of work, the building of properly functional teams and an organisational culture of on-going learning and innovation The Stages of Team Development Teams generally pass through different stages of development. A manager and leader should be able to identify the characteristics of each stage of team development so that the most appropriate strategy of managing each stage can be employed. This section covers the five stages of team development and the leader or manager s role in managing these stages of team development. The five stages of team development based on Bruce Tuckman s initial stages of team development and Thomas Quick s five stages of teams are listed as follows (Lee, 2012): 1. Forming; 2. Storming; 3. Norming; 4. Performing; and 5. Adjourning/ transforming. The article below explains the stages of team development in detail: Regenesys Business School 40

46 The Five Stages of Team Development (Lee, 2012) Team-Development&id= Interpreting and Managing Group Dynamics Group dynamics refer to the unconscious or conscious behaviour of members in groups that can either enable or constrain a group process. It impacts on how a task is performed and accomplished. It affects the way in which the members communicate and trust each other. It influences the mood and energy of the group. An example of a commonly exhibited behaviour is being critical (where the member is critical of the content or process of discussion) or quiet (where the member does not participate much in the discussions). It is important to note that people do not necessarily always behave in this manner. For example, you might find in your own experience that you are quiet in some groups, but contribute extensively in other settings. Your participation depends on many factors such as your level of confidence, the amount of information you have on the topic of discussion, the role of the facilitator is encouraging participation and your mood at that time. Therefore, if someone is behaving in a critical or dominating manner, please do not stereotype them and presume that they always behave in that way. Their behaviour is often influenced by their context. Another important distinction to make is to recognise that the behaviour of members in groups is different to the roles members play in groups. A role is a function or a responsibility. Behaviour on the other hand refers to one s conduct or performance. The following section explores the role of the team leader in managing group behaviour. Read the article below to answer the questions that follow: Group Dynamics, processes and development. (Neill, 2007) Role of the team leader One of the greatest skills that you can acquire as a leader and manager is the ability to facilitate a group process. The word process can be explained as the interaction between people who are involved in an activity that requires a desired outcome. The individual who acquires the skill of facilitation will be able to assist groups or people out of deadlock situations and/or create an environment whereby people can generate solutions to problems. In other words, because the facilitator is aware of all the intangible and tangible processes in the group (that may obstruct or facilitate progress) she or he is in a position to enable the group to achieve their expected outcome. Regenesys Business School 41

47 The role of the team leader is to (Timmel & Hope, 1988): Provide a process that will help the group to discuss their content in the most satisfactory and productive way possible. Be neutral about the content of the meeting and should have no stake in the decisions that are taken, as far as possible. Be totally concerned with the process, not with the content. Ensure that there is good communication in the group and that all the members are satisfied with and fully committed to the decisions taken. Timmel and Hope (1988) identify some skills for a team leader to effectively facilitate a group process: Observing what goes on in a group. Clearly identifying the main needs of a group. Learning ways of dealing with these needs. Applying and practising these skills in many different situations. Taking people s feelings seriously. Listening to feedback about your behaviour as a facilitator and being open to changing it. Three levels to observe in groups or teams A key role of a team leader is to be able to identify and manage dynamics in a group. This will ensure that there is meaningful participation and contribution by all members. The team leader should therefore develop the ability to observe the spoken and unspoken communication in a team. This can be done by observing three levels of group behaviour. Table 6 outlines the three levels to observe in groups and teams. Table 6: Outing the three levels to observe in groups and teams In order to get to grips with the content, ask some of the following questions: Content What is the group talking about? What is each person saying? What is the main line of discussion in the group? Is the discussion related to the brief given? Are people raising conflicting points? What are the issues that people agree on? What is the line of argument? Note the feelings and reactions to the content i.e. the tone of voice, body language, facial expressions, order of speaking, etc. Non-verbal communication helps us to get an insight into how people may be feeling. To read non-verbal behaviour ask the following questions: Intangible or Nonverbal Behaviour What is the subtext i.e. what is not being said, but implied? Why are people not verbalising the subtext? Who do people look at when they speak? Who do they not look at in the group? Who looks focused on the discussion? Who looks distracted e.g. fidgeting, staring out the window, etc.? Who has position power in the group i.e. the assigned chair/facilitator/leader? Regenesys Business School 42

48 Who has the actual power in the group this could be the same person as the person who possesses position power? However, it might be a different person who wields respect and from whom people seek approval. Who has subversive power in the group i.e. someone who undermines the group process, tries to derail the discussion? However, we may be misguided in our interpretation. It is therefore important to test or check the assumptions that we make about the person, e.g. It appears as if you disagree with the point made, Mandla. Would you like to offer an alternative opinion? In most cases it is easy to identify the behaviour and roles of group members, i.e. people who dominate, remain quiet, or clown around. Moreover, these behaviours generally match the individual s non-verbal expressions. So, even though the discussion may be of a high quality, one person could be dominating the entire process, leaving little or no opportunity for others to add or disagree. The end result will therefore be the product of one person, instead of the group s contribution. To understand tangible behaviour, ask yourself the following questions: Tangible behaviour Who speaks the most in the group situation? To what extent is this assisting to achieve the team task or not? Who speaks the least in the group? To what extent is this assisting to achieve the team task or not? Who speaks occasionally? Who makes a lot of jokes in the group? To what extent is this behaviour contrastive or destructive? Who criticises other people s points or the group process? To what extent is it being done to assist the team to achieve its purpose? It is the role of the team leader to understand the inter-relationships of these three levels i.e. understand clearly how the process affects the level of discussion of the content, and the commitment of the group to carry out the decisions made. Group behaviours Members of a group contribute differently based on numerous factors such as size of the group, level of confidence, knowledge on the topic, their status in the organisation, etc. The role of the team leader is to enable all members to facilitate meaningful contributions so that the team s purpose can be achieved. However, the behaviours of certain members can impede team performance. The team leader should be mindful of these behaviours such as: The dominator who might be very knowledgeable but dominates the discussion to a point of stifling participation of other members The critic who can be analytical and see things others do not always notice but can criticise the contributions of others without necessarily offering alternatives or solutions The clown who adds humour which can lighten the team s mood but can derail focus on the required task The quiet person who might be a very good listener and have a great deal to contribute but does not offer any opinion for whatever reason. Regenesys Business School 43

49 The way to manage group behaviours Anticipate that members will perform one or more of the above mentioned group behaviours in any group situation. The facilitator or the group leader should ideally be the person who manages these group behaviours by ensuring that all team members behave constructively rather than destructively. If you are a team leader or find yourself in a group where the team leader is struggling to manage the group behaviours effectively, support the team leader by doing the following: In order for teams to be high performing, all members should understand the purpose and goals of the team. A clear purpose assists members to know why they are part of the team, how everyone fits in to the bigger picture and ensures that the needs and objectives of the individual, team, organisation and tasks are aligned with each other. The level of commitment and ownership will be higher the more involved team members are in developing the purpose and goals of the team together. A clearly defined purpose therefore ensures that every member will be able to recognise the important contributions their actions have to the greater whole, regardless of whether they perceive their roles as important or insignificant. If the team has already developed its purpose, but members are not working in synergy, remind all the members of why they are there. If there is confusion regarding the purpose, clarify the reason for being together and the need to perform the task. Discuss and clarify the significant contribution that each member has in the successful completion of the task. If the discussion is not progressing, remind all the members of the purpose of the task. Link the key points made by members to the purpose of the task. Ground rules Establish ground rules to ensure that an environment to constructive discussion and effective actions is created. Ground rules should cover the following broad categories: o Values the values that will govern the team, e.g. trust, honesty, respect, etc. o Processes how issues will be discussed, how feedback will be given; how the meeting will be chaired; how decisions will be made, etc. o Responsibilities the roles that people will perform, e.g. chair, scribe, etc., and what is expected of each role; who will take responsibility for the actions arising from the discussions, etc. o Communication the way in which issues will be discussed, processes to resolve conflict, etc. o Logistics time of meetings, venue, length of meeting, etc. o Management of Ground Rules what will be the consequences of a member not respecting the ground rules? Effective Communication Listen attentively to everyone s opinions regardless of whether you agree or disagree. Allow people to express themselves freely, especially if they appear to be angry or upset. Remember if you suppress people from expressing themselves, they might remain quiet temporarily, but they might explode later on. For example, when you place a lid on a boiling pot the water will boil over. Miscommunication can be prevented if you summarise, paraphrase, repeat or rephrase certain Regenesys Business School 44

50 points. Ask questions to elicit effective results, for example, ask closed ended questions if you want to reduce the amount of discussion, and ask open-ended questions when you want someone to contribute to the discussions. The facilitator should instead attempt to direct the individual s comments so that they add value to the discussion. The statements below could be used to address common communication problems brought about by group behaviours. The clip below describes techniques which allow managers to manage multi-cultural teams. Multi-cultural team management. (CommLab India, 2010) wxch287ws Statements to Manage Group Behaviours Look at Table 7 below. Decide, and then indicate by ticking, for which type of group behaviour(s) each of the statements on the right could be appropriately used to modify inputs or redirect discussion. Table 7: Statements to manage group behaviour No Dominator Critic Joker Quiet Statements to manage these group behaviours 1 You have raised important points, how does it relate to the main purpose of the discussion which is to? 2 X has had her hand up for a while now, let us also hear what she has to say. 3 As the facilitator, I would like to remind everyone about our ground rules. We said that we should encourage active participation from everyone 4 Let us discuss this issue using the round robin method, i.e. each person will have a turn in the team to comment on the issue for a maximum of two minutes 5 Mandla, what is your opinion about the point on? That was a very amusing story. Let us continue sharing stories at the end of the session, which will be in an hour s time The points that you have raised are very important. We are however, looking at this issue You have raised very important concerns/ fear/ criticisms. What practical suggestions do you have to ensure that we are able to still complete this task whilst we address those concerns? Nomonde, you look slightly concerned. Would you like to share your thoughts? Thanks for your contribution. We are unfortunately running out of time. Can we move on to the next issue or could we get other people s opinions? Regenesys Business School 45

51 11 12 What is your understanding of the issue? It seems as if we need an energiser. Cathy you are good at making us laugh. Please tell us a joke Answers: 1. Dominator/critic; 2. Quiet behaviour; 3. Dominator/ quiet; 4. Dominator/quiet; 5. Quiet behaviour; 6. Joker; 7. Dominator; 8. Critic; 9. Critic; 10. Dominator; 11. Quiet behaviour; 12. Joker Reasons and solutions for group behaviours Table 8 outlines the possible ways of managing each type of group behaviour. In order to select the most effective solution, it is critical to determine the possible reason for the behaviour. For example, a quiet person might not be quiet because s/ he is shy, but disagrees with the process or the discussion. If you understand the reason for this behaviour, your action as a team leader will be more effective and beneficial for the team at large. Table 8: Role of team leader in managing group behaviours POSSIBLE REASONS FOR THEIR BEHAVIOUR POSSIBLE SOLUTIONS FOR THE TEAM LEADER QUIET BEHAVIOUR This person remains quiet for most if not all of the discussions, and sometimes contributes when pressed. Insufficient preparation for the meeting Multi-tasking in a meeting Other people are dominating and not giving others a chance to contribute Lost in the discussion Provide people with at least 3 days notice in advance so they can prepare for the meeting. Require each member to provide feedback based on set questions so they are forced to prepare for the meeting. Remind members via / SMS that they have to come prepared for the meeting. Ask the person in the meeting why s/ he is not participating and how we can support her/him to contribute to the discussions. Speak to the person in private about being concerned about her/ his participation and explore ways to address the situation. Remind members about the ground rules, where everyone agreed not to do other work during a team meeting. Ask the person a question to elicit a response. Remind members about the ground rules where everyone agreed that all members should participate actively. Introduce a round robin system, where each member is provided an opportunity to contribute. Allocate a time limit to everyone s contribution. Summarise the key discussions periodically. Remind team members of the purpose of the meeting and the key areas of discussion. Regenesys Business School 46

52 Language problems Disagreement the person being quiet does not agree with the points or process Shy Bored Remind team members that English might not be the mother tongue for everyone. Request everyone to speak clearly and simply. Repeat (say again) and/or rephrase (say in different words but with same meaning) information. Summarise contributions frequently to ensure that everyone is on the same page. Ask open-ended questions to check if everyone is on the same page, example, Kate made an interesting point, what is your opinion about what she said? Invite plurality of views by expressing that you want people to provide divergent views. Always ask the people to provide a solution to prevent it from being destructive rather than constructive feedback. Acknowledge this person s contribution and indicate how it contributes to the main discussion. If the person is extremely shy, find alternative ways to draw the person into the conversation, by acknowledging the person s written contributions or hard work, without placing pressure on the person having to make a verbal contribution. Remind all members of the importance and value of the discussions. Explain how their contributions are valuable. Example, Fernando s contribution is important because it Ask people to take a two minute break where they do a quick fun activity, such as an ice-breaking exercise, tell a joke, or to get some refreshments. DOMINATING BEHAVIOUR A person who dominates has a great deal to contribute about an issue and often takes over a discussion or wants her/ his views to be accepted. Has extensive knowledge on the issue Wants to show off her/ his knowledge based on an ego motive Feels inadequate about himself/ herself Allow the person to contribute but manage the contribution. If you put a lid on a pot of boiling water, the water will bubble over. Similarly, if you put a lid on someone who has a great deal to say, that person might remain quiet for some time but will erupt at a later stage. Put a time limit to everyone s contributions where they have to speak within a set timeframe. Allow everyone to have a chance to speak round robin technique. Ask others who have not had a chance to share their views to first contribute and then allow those who have contributed a chance to provide their thoughts afterwards. Use this person s contribution meaningfully for example, when people are not actively participating in a discussion, then you could ask this person to air her/ his views to spark some discussion. To avoid over-domination by participants, ask them to prepare a timed input for the group discussion. Other people should be encouraged to ask questions and contribute their opinions based on this input. As a general principle, avoid putting anyone down. Thank the person for her/ his contributions, extract the value of the person s contributions and invite others to make their contributions. If the person s contribution is off the point, then extrapolate what is relevant and ask other s to contribute to the discussion. Sometimes, when people feel inadequate about themselves, they overcompensate by trying to show that they are better than others. Regenesys Business School 47

53 Thinks other people know less Wants to be the leader If this is the case, acknowledge the contribution and invite others to contribute. Thank the person for her/his contributions and remind everyone that all of their contributions are valuable. Refer back to the ground rules that might refer to allowing everyone to contribute. If the person is undermining others in the group, remind the person about the ground rule of respecting each member. If the person continues, have a one-on-one discussion with this person after the meeting to understand and resolve this behaviour. If the person is undermining your leadership abilities and wanting to usurp your position, have a one-on-one discussion with the person after the meeting. If the situation does not improve, then raise this problem openly with the team and ask them to help resolve the situation. Example, Jim has been questioning my ability to lead the team effectively. I ve had a discussion with him about this in private, but he still feels strongly about it. What is your opinion about this? Do you still want me to lead the team? The chances are that they all want you as the team leader. However, be open to what they have to say, because you might not be a very good one and they would like you to make a couple of changes in your leadership style. Raise this issue with your Executive, or the person who appointed you as team leader. Ask the person for guidance. CRITICAL BEHAVIOUR This person has a very analytical mind and generally finds flaws in discussions, proposals and processes, but is not always able to provide solutions. Has a generally pessimistic outlook on life Thinks s/ he knows more than others and finds fault with other people s contributions Wants to take over the leader s position Value the person s analysis of the situation and ask the person to come up with a solution. Indicate that you appreciate her/ his analytical input. Ask the person to come up with her/his own position and pick her/ his own contribution apart. Example, Your analysis of all the other contributions has highlighted important areas for improvement in our processes. What is your contribution and what are the strengths and shortfalls of your proposal? If the person is undermining your leadership abilities and wanting to usurp your position, have a one-on-one discussion with the person after the meeting. If the situation does not improve, then raise this problem openly with the team and ask them to help resolve the situation. Example, Jim has been questioning my ability to lead the team effectively. I ve had a discussion with him about this in private, but he still feels strongly about it. What is your opinion about this? Do you still want me to lead the team? The chances are that they all want you as the team leader. However, be open to what they have to say, because you might not be a very good one and they would like you to make a couple of changes in your leadership style. Raise this issue with your Executive, or the person who appointed you as team leader. Ask the person for guidance. Regenesys Business School 48

54 JOKING BEHAVIOUR (This person enjoys joking around and creating a humorous atmosphere - not always conducive for work.) Enjoys making others laugh Tries to cover up for certain inadequacies such as not having done the work, or not feeling as smart as the others Is bored Acknowledge the person s contribution to the team by making people feel more relaxed. Ask the person to respond directly to a question that is related to the issue of discussion. Ask the person to relate the joke or the humorous comment to the discussion. Indicate that you value everyone s contributions and try to relate the joker s comment to the main discussion. Acknowledge the person s serious comments, so that the person develops more confidence in making meaningful contributions. If the person is putting others down through humour, remind everyone of the ground rules and indicate that it is inappropriate to make fun of others. If this behaviour continues, have a one-on-one discussion with the person to identify the root causes and solutions. The person might be joking just to lighten an otherwise very boring discussion. Channel this person s behaviour by giving this person 30 seconds to tell a funny story/joke when the team needs a mental break from a discussion. These solutions are appropriate for the different types of behaviours, depending on the situation. COMMON SOLUTIONS Always acknowledge someone s contribution and indicate how it relates to the topic under discussion. If a disagreement ensues and it starts to create tension in the team, suggest that the issue is resolved in private after the meeting. Have a one-on-one discussion with the relevant members to resolve the issues. If someone rambles on about a topic in an incoherent manner, extract what is of value and link that point to the discussion. If you do not understand what the person is saying, ask the person to relate what has just been shared to the key discussion. Direct discussions on the achievement of the intended outputs as specified in the ground rules and Project Charter. If a discussion is not achieving this objective, redirect the discussion so that people remain on track. If you feel that you are unable to manage someone s behaviour, then ask a senior person to intervene. Do not cause dissention or create uncertainty in the team by playing one team member up against another. Regenesys Business School 49

55 Practical Activity The purpose of this activity is to apply the theory of group dynamics in a real situation: Find a group of no more than 8 members that you can observe this could be a group at work, in a social setting such as a sports club, religious group, etc. In this activity, you are merely an observer. You are not required to participate in the group discussion or be part of the group at all. Briefly describe this group in terms of the purpose of the group, the reason for the members coming together on that occasion, the number of people in the group. Observe the dynamics in the group: a. Describe the level of participation in the group? Did everybody participate equally or did a few people dominate the discussions? b. What were the facial expressions and body language of the members i.e. did they seem interested or bored in the discussion. Were they concentrating or fidgeting? c. What behaviours did the different members perform i.e. who (if any) behaved in a dominating, critical, clowning or quiet manner? d. Who possessed authority in the group i.e. who did people in the group tend to listen to the most? e. What this person who had the most authority also the team leader or a different person? f. Did the group achieve its intended purpose for meeting on that occasion? Explain your response. g. To what extent did the group dynamics enable or hinder the group from achieving its purpose? h. How effective was the team leader in managing the group dynamics? Please explain your response by providing examples. i. If you were the team leader, how would you manage the group dynamics differently to ensure that the intended purpose of meeting was achieved? Recap Questions Read the following article and answer the questions that follow: Barnett, S. (2003) Teams in the workplace. Technology studies in Education. < 1. Define a group and a team. 2. Explain the different types of groups and teams. 3. Compare groups and teams. 4. Explain the characteristics of groups and teams. 5. Explain the characteristics of each stage of team development. 6. Explain the team leader s role in each stage of team development. 7. Explain the three levels that a team leader should observe in a group. 8. Describe ten ways in which a team leader can manage group dynamics effectively. Regenesys Business School 50

56 7.7 EFFECTIVE COMMUNICATION Timeframe: 4 hours Learning Outcome: Describe the process of communicating professionally and persuasively Recommended reading: Effective Communication. (Frank, n.d.) Multimedia: Section overview Communication skills (Singh, n.d) A critical competency for any manager who is required to interact with people is being able to communicate effectively. Without effective communication neither party will know what is expected of them and how the tasks at hand should be completed effectively. This section explores the processes and tools to communicate effectively verbally and non-verbally. There is specific emphasis on active listening because it is a core component of being able to communicate well with others. The following section focuses on presentation skills and written communication with specific emphasis on writing assignments and examinations Verbal Communication As we have entered into the so-called knowledge age, communication skills have become more important than ever before. Your success in your organisation in influencing your boss, your team, or policy decisions, depends on your ability to communicate and present ideas effectively, convincingly and credibly. This section will look at the ways of improving presentation skills and verbal and non-verbal communication skills. Good Communication is the lifeblood of organisations (Heller, 1998). Define communication Before we can begin the process of communicating effectively, we all need to develop a common understanding of what we mean by this word communication. Functions of communication A variety of reasons exist of why people want to communicate with one another. Most of the reasons relate to conveying information to achieve a specific outcome. These reasons or functions are described in Table 9: Regenesys Business School 51

57 Table 9: Functions of communication Control: Motivation: Emotional expression: Decision-making: Communication is one method to ensure that you can maintain control of a situation or an issue. Communication is a power tool to motivate someone to act on an issue and even persuade people to a different position. Communication provides the opportunity for people to express their feelings, thoughts, concerns, etc. Communication is the vehicle that carries the information to assist individuals to make decisions. Methods of communication There are many ways in which one can communicate effectively. It is important to select the appropriate method that will match the purpose for communicating. Table 10 provides a summary of the different types, methods and usefulness of communication techniques: Table 10: Methods of communication Type of Communication Methods of Communication Usefulness Written Communication Verbal Communication Non-verbal Communication Visual Images Multimedia (involving information technology) Letters, memos, reports, proposals, briefs, minutes, discussion papers, plans, contracts, executive summaries, contracts, programmes, etc. Conversations, meetings, phone calls, debriefings, interviews, announcements, speeches, inputs, etc. Gestures, facial expressions, tone of voice, posture, stance, seating position, presence, absence, actions, movement, etc. Photographs, paintings, drawings, cartoons, videos, logos, collages, doodles, charts, graphics, etc. Television, computers, internet, e- mail, CD-ROMs, video, radio, newspapers, magazines, etc. Written communication is generally used in organisations because it can reach a large number of people with minimum effort and the information can be easily stored for future reference. Verbal communication is generally used because it is convenient, immediate and possible to clarify for better understanding. Non-verbal communication occurs at every point of interaction whether there is conscious awareness or not. Non-verbal communication signals either positive or negative subconscious messages about the interaction. Visual images are able to summarise and simplify written text. Multimedia is generally a powerful communication medium to use because it allows for interactive participation with people located in a different physical proximity. Regenesys Business School 52

58 The communication process is illustrated in Figure 5 Figure 5: The Communication process Communicator A Receive and interpret Encode with language Message in medium A Transactional model of communication Message in medium Encode with language Receive and interpret Communicator B (Source: Foulger, 2004) You can access a great presentation on communication skills by visiting the hyperlink below: Communication skills (Singh, n.d.) Regenesys Business School 53

59 Barriers to effective communication The barriers to effective communication are discussed in Table 11. Table 11: Barriers to effective communication Filtering: Selective perception: Emotions: Language: Inconsistency between verbal and non-verbal communication: Prior trust/mistrust: Refers to allowing certain information to be communicated. The sender would therefore only communicate filtered information by deciding which aspects should be communicated to and/ or withheld from the receiver. Our mental models usually influence us to understand, interpret and respond to the world in a particular way. The receiver will therefore understand or interpret a message in a certain way based on his or her existing understanding of the issue, background influences, etc. Likewise, the sender s message will also be influenced by his/ her experiences. In both cases, the receiver and/ or the sender will communicate or interpret only selective aspects of the message, as a result of how they perceive the issue. Emotions, like, anger, extreme elation and sadness are capable of blocking us from receiving a message accurately, as that emotion might influence the way in which the message is either interpreted or communicated. Language could refer to two aspects speaking in a complicated manner by using words that are generally inaccessible, or not being sufficiently familiar with the language being spoken or written. Whichever aspect applies, a breakdown of communication arises because the receiver is unable to decode the sender s message effectively. People respond and act on both verbal and non-verbal cues. So if for example, someone says that she believes in supporting staff and is eager to listen to problems, but her body language expresses something different, like shifting of feet and tapping her pen on the desk, then the receiver is less likely to be convinced by the spoken word. Trust is usually earned based on someone s past actions. However, if this trust has for whatever reason been severed in the past, it will be harder for this person to convince or persuade someone to a different position, regardless of the medium of communication used. Key communication skills The key communication skills should be applied in all verbal communication situations to ensure effective communication. These are discussed in Table 12. Regenesys Business School 54

60 Table 12: Key communication skills Active listening Maintaining eye contact Using appropriate body language Avoiding distracting actions or gestures Asking questions Through listening with intensity, empathy, acceptance and a willingness to take responsibility. That is comfortable for the other person remember staring is considered as being rude. Attempt to give affirmative head nods and reflect an appropriate facial expression (i.e. interested/ concerned/ supportive/ friendly, etc.). Like tapping on the table, picking on your clothes, sighing constantly, etc. That will reflect a keen interest in what the person has shared. If you are uncertain about what the person has just said, ask for clarity. Paraphrasing To ensure that you have understood the speaker clearly. regardless of whether you are convinced that you are right. Try not to assume, Not interrupting Not over talking Making smooth transitions The speaker by butting in or by completing the person s sentences. Communication is a two way process which requires dialogue. Between speaking and listening, by nodding, perhaps repeating important aspects made by the speaker, or saying things like, Yes, I agree or I would like to add to that point or I see it slightly differently Table 13 below highlights the warning signals of a closed communication climate developing and offers alternative approaches to re-establish the open and supportive climate. Table 13: Approaches to re-establish communication Non-caring Deceptive Controlling Judgmental THE CLOSED COMMUNICATION CLIMATE Emphasis on allocating blame Feedback becomes negative People made to feel incompetent People made to feel inferior People made to feel that they acted out of line Conforming to certain types of behaviour is made explicit Attitudes and behaviours that are inconsistent with the norm are not tolerated Hidden meanings Insincerity Manipulation Detached Self-centred Impersonal Little obvious concern for others THE OPEN AND SUPPORTIVE COMMUNICATION CLIMATE Descriptive Solutionoriented Open and honest Caring Switch communication to being informative rather than evaluative Focus on problem solving rather than on what cannot be done Encourage divergent thinking Encourage constructive criticism Avoid hidden messages Aim to help and improve Place emphasis on empathy and understanding Regenesys Business School 55

61 Superior Difference in status, skills and knowledge emphasised Egalitarian Encourage communications that value everyone regardless of role or status Dogmatic Little discussion Unwillingness to accept other points of view Little compromise Forgiving (within certain parameters) Recognise the inevitability of error Accept that misjudgement can happen Take supportive action to minimise future error Hostile Predominantly negative approach Little interest placed on the needs of others Feedback See feedback as positive Recognise feedback as essential to high levels of performance Feedback skills: positive versus negative feedback The following guidelines should be followed when providing feedback during a verbal conversation: Focus on specific behaviours. Keep feedback impersonal attempt to focus on the act or the deed, not attack the individual. For example, coming late to work every day has the following effects on other staff instead of, Because you are always late, you de-motivate everyone. Be goal-oriented where both of you establish realistic goals to improve the situation. The feedback process should be well timed. If you or the other person is in a bad mood or feeling down, the process of giving feedback might not be done in a constructive way. Ensure that the person understands the issue by asking what the person understands by the feedback that has just been given. Also, ask for the other person s opinion, because s/ he might disagree with your analysis Non-verbal communication Methods of conveying non-verbal messages Messages are conveyed through various non-verbal methods. These are discussed briefly in Table 14. Regenesys Business School 56

62 Table 14: Methods of conveying non-verbal messages Body movements Intonations or emphasis Facial expressions Clothes Posture Gestures Eye movements Physical distance Body contact Notice which parts of your body you or the other person covers, e.g. covering the throat, folding arms, turning the body away from the person, placing arms above the head, etc. We give to words speaking in a loud, soft, timid, angry, impatient, etc. tone Could denote being confused, angry, sad, hesitant, sceptical, amused, etc. Reflect the importance you place on grooming and appearance. Clothes could indicate that you are serious, more free-spirited, etc. Remember; do not judge a book by its cover. Reflects your level of confidence. If you have an open and square posture, it reflects confidence. However, if you are slumped over, with hunched shoulders it could reflect a lack of confidence or feeling defeated. Gestures tend to reflect the emotions of a person. For example, if the person taps on the table, it could mean that person is irritated, or if the person scratches his/ her head, it could mean that the person is confused about a matter. Eye movements could also reflect the person s emotions. Some people claim if the person shifts his/ her eyes repeatedly, it could mean that the person is nervous and/ or hiding some information. Others claim that if the person suddenly looks away nervously, it could mean that s/ he is hiding information. Remember that certain cultures perceive it as rude to look into someone s eyes. The physical distance between the sender and receiver denotes the personal space that people need to feel secure. If one person closes in on you without your permission, it could represent that the person wants to dominate you. Once again, certain cultures have different notions of personal space. Body contact suggests whether you are liked or not. For example, someone touching you lightly on the elbow could mean approval of that person. At the same time, touching could also be extremely offensive to some people as it could be misconstrued as an inappropriate sexual advancement. Recap Questions 1. Write down your own definition of communication. 2. Find three different definitions on the internet for communication and compare these to your definition. 3. Describe the communication process. 4. Explain the importance of communicating effectively as a leader or manager. 5. Explain why listening is so important? 6. What does it mean to be an active listener? 7. Explain the five elements of becoming an active listener. 8. Explain the reasons for a breakdown in communication and explain ways of overcoming these barriers. 9. Describe ways in which people can communicate non-verbally. Regenesys Business School 57

63 7.8 STAFF DEVELOPMENT AND TRAINING Timeframe: Learning Outcome: Recommended reading: Multimedia: Section overview 4 hours Identify training needs and skills shortages Explain the steps to develop and implement a training plan Framework for the National Skills Development Strategy 2011/ /16 (Department Higher education and training, 2010) 3.pdf Skills Planning. (FASSET, 2004) Training and development plays a vital role in the Human Resource department. Once a new staff member is appointed the person needs to be exposed to the culture of the organisation and often needs assistance and sometimes training to fit in better. It is of utmost importance that one identifies the skill shortages immediately to avoid any problems in the future Identification of Training Needs The role of a human resource manager is to only recruit sufficient staff but to also create opportunities to make these staff more valuable. Creating more valuable staff can be achieved through the process of training and development. Another aspect to note when reading the prescribed textbook is that there is a clear distinction between training and development and technical training and management training. Be familiar with how these notions are distinct Different Methods of Training Different methods of training can be conducted: Informally within the work situation; Formally within the work situation; Informally outside the work situation; and Formally outside the work situation. Regenesys Business School 58

64 On-the-job training and development On-the-job training involves guidance or training being given by an employee s supervisor, manager or experienced co-worker. These include: Job Rotation: Letting employees work a certain amount of time in a different job in order to gain a wider range of skills. Coaching: An employee s superior sets goals for him/ her and assists in achieving them by answering questions and helping the employee analyse his/ her mistakes. Mentoring: An experienced staff member helps a fellow employee develop personally in his/her career by giving advice and listening to problems, but not actually providing taskrelated training. Job Instruction Training: A supervisor demonstrates and teaches a work-related task, allows the employee to try it out and then answers any follow-up questions. Off-the-job training and development This includes any training and development that is done away from the actual work area. It could be in-house programmes presented in the organisation s training centre, or off-site programmes conducted at a college or other external location. Off-the-job training and development includes outcomes-based accredited skills programmes, lectures, conferences and outdoor team-building exercises. In-house staff versus service providers This is an important part of training and development management. If you employ internal staff to create and deliver all training, you will need the following: Staff who are qualified to write material in a variety of different skills areas, who may need to submit their materials to the SETA to be accredited; Experienced facilitators (or trainers) to conduct the training; Registered assessors to assess the student s assignments or tests; A venue where training can be conducted; Catering such as lunch or tea and coffee for staff attending training; A printer to print course material; and Classroom materials such as whiteboard markers, flipcharts, transparencies and overhead projectors. If you are an international student, you need to align your country s legislation to this section. Regenesys Business School 59

65 7.8.3 Develop and Implement a Training Plan In South Africa, the training and development plan required by the National Skills Development Strategy (NSDS) is called a Workplace Skills Plan (WSP). Private sector companies have to submit their WSPs to the relevant SETA to get grants for implementing the plans. But to show their commitment to the vision of the NSDS, public sector organisations should submit their annual WSPs to the SETA by 30 June. The WSP is an annual (yearly) document that describes the employer s plans for the training and development of employees that year. The WSP requires the HR practitioner to: Examine the current workforce how many people are employed in each occupational category and how this might change in the future (Section C: Employment Summary). Examine the organisation s objectives (both strategic and operational) and plan for training based on these needs (Section D: Skills Development). Examine how much training will be provided to empower previously disadvantaged groups (Section D: Skills Development; Section E: Employment Equity). Training priorities identified must be specific to ensure that any training that is provided is entirely appropriate to the need. The South African Labour Guide (n.d.) provides a detailed explanation of skills development and workplace skills plans. Read the article below for the most recent explanations. Skills Development: A Comprehensive Guide Skills development is the training and development that the employer provides to his employees in the workplace. It is often construed that only training that is provided by an outside training provider falls within the definition of skills development. The definition also includes on-the-job training provided by the employer. In the late 80s, Government started researching a new training methodology - Outcomes-Based Education (OBE). This method of training was adopted from the then Commonwealth training method, which made provision for people qualifying not only by formal education, but also by informal on-the-job training based largely on their experience. The system made provision for what is now known as recognition of prior learning or (RPL) - which basically entails testing a person's ability to do a specific job and awarding this person either a qualification or credits towards a qualification, based on his current knowledge and ability to perform the required task. In layman's terms this means that if a person has been working as a plumber for the last 12 years this person may request a training institution to perform an RPL exam, to assess his capability and award him with a qualification based on his experience. It is therefore possible for him to receive a plumbing qualification based on his experience, without having served a recognized apprenticeship or student ships. This new training methodology also created what is now known as the National Qualifications Framework (NQF) system, which allows educational levels from different industries to be ranked in parallel on a single system. In layman's terms this means that you will be able to draw a parallel between the qualification of a secretary and a salesperson or a chartered accountant and a medical doctor. The NQF system consists of eight Regenesys Business School 60

66 different levels namely: NQF level 1 - General Education and Training (GET) levels - primary training and development up to grade 8 and 9 and ABET 4. NQF 2 to 4 - Further Education and Training (FET) level - secondary education including certificates and qualifications up to grade 12 or N5 NQF 5 to 10 - Higher Education and Training (HET) levels - higher education such as university degrees, doctorates and further research. This framework allows education and training to take place within a formal structure that can be monitored and controlled by Government. In terms of the Skills Development Act of 1999, Government created 24 Sector Education and Training Authorities (SETA). The act also divided all organisations into different industries based on their core activities, and the Department of Labour and SARS were tasked with allocating organisations into the different industries. It was the responsibility of the SETA to ensure that all training within that industry were in-line with the requirements laid down by the industry leaders. During the next 5 years training institutions had to register and accredit all their formal training courses and qualifications with the SETA and the South African Qualification Authority SAQA. Government also identified the need for accelerated qualifications due to the brain-drain effect after 1994 and introduced the student ship system, now people could qualify within 12 to 18 months using on-the-job training. A student ship consist of two parts the first part being the theoretical part delivered by a student ship accredited training institution, and the second part being a practical on the job practical training, where the student receive on-the-job training. The key principle of a student ship is basically the same as an apprenticeship with the biggest difference being the intensity of training and the tight control over the training delivered on a student ship. There are several financial and other advantages to having student ships in the organisation. Tax rebates of up to R50,000, cash discretionary grants of up to R and even grants to supply tools and equipment. It must be borne in mind that the cost of a student ship will equal the benefits received from the SETA, so this is not a moneymaking scheme. Many organisations have contacted me to start student ships only to find out that the cost of training can only be recouped once the training has been completed. The organisation needs to financially carry the trainee for the duration of the training period which is usually 12 months. The organisation also need to have mentors as well as the equipment available for training and therefore it is best left to organisations with welldeveloped infrastructures and deep wallets. To fund all these wonderful plans and systems, Government introduced the Skills Development Levies Act of In terms of the Skills Development Levies Act all organisations in South Africa with a payroll exceeding R500,000 per annum must pay a 1% Skills Development Tax on their payroll. This tax is fully contributed by the employer as part of its general statutory taxes calculated on the EMP 201 SARS form. In terms of the act, organisations may claim back up to 55% of their paid Skills Development Tax - in other words they may claim back 55 cents out of every Rand. However organisations my only claim back their SDL tax if: a. They pay SDL tax b. They provide approved training to employees in the organisation either internally or externally. Regenesys Business School 61

67 In terms of the Skills Development Levies act, organisations not paying SDL tax may not claim the grants; they may however offer student ship and claim student ship grants. The actual claim that the organisation has to submit to activate the claim procedure is called an annual training report and workplace skills plan (ATR & WSP). This document consists of two parts. The first part is the annual training report. The annual training report does exactly what it says; it basically tells the SETA what training has taken place in the organisation in the previous 12 months, and which employees received training. It also contains information to the type, cost and delivery method of the training it goes further to assess whether the training that the employees received is in line with the planned training for the organisation, industry and critical skills identified by the SETA. The second part of the document is the workplace skills plan, This part of the document tells the SETA what training the organisation will provide to the employees in the next 12 months, based on the operational requirements of the organisation, its industry and the critical skills identified by the SETA. This document is thus a check and balance system to the SETA, allowing them to gather valuable statistical information with regards to skills shortages, critical skills in organisations and development requirements within the industry. It also allows Government to project skills needs and to make this information available to training institutions such as universities and technical training institutions. Without this information the Government would not be able to plan student ship training courses and provide for skills shortages. This mammoth task falls under the control of the Skills Development Facilitator (SDF) of the organisation. To complete the required documentation. The organisation will need to have a trained and accredited SDF, although this might seem like just completing a form, the compilation of the information and the implementation is very involved. In terms of the Skills Development Act and the rules and regulations of the SETA the SDF is responsible for the following: 1. Facilitate the development of employees in the organisation and the strategies of the organisation fairly and equally. 2. Acquire the resources to accredit and evaluate student ships and skills programs in the organisation. 3. Evaluate the skills development needs of the employees and organisation and continually evaluate the implementation of identified needs. 4. Advise the employees and the employer on external and internal skills strategies as well as the progress of the skills development of the organisation. 5. Be a training committed leader and lead the process of organisational skills development and employee development. 6. Act as SDF administration and check all SETA documentation before submitting. 7. Set up a training committee. 8. Advise the organisation on the implementation of the WSP. 9. Advise the organisation on the quality assurance requirements of the relevant SETA. 10. Serve as contact person between the organisation and the external SDF and SETA. 11. Chair the skills development planning committee or training committee. 12. Bring the company policies in line with the regulations as laid down by the Skills Development Act. Regenesys Business School 62

68 13. Create a skills performance system for the company where no skills performance system exists. 14. Generate the key performance area for the skills performance system. 15. Complete an individual development pathway for all employees, as well as the skills requirement and learning pathway. 16. Create a portfolio of evidence for all employees that will receive training in the company. 17. Complete the WSP, ATR and submit it to the correct SETA, before the deadline. 18. Formalise the qualifications of employees through a baseline assessment. 19. Train employed staff in order to claim the skills development levy grant from the SETA 20. Register Student ship Programs by training unemployed people. 21. Claim their skills development levy grant from their SETA and claim the Tax rebates as stipulated for Student ships. Before submitting the workplace skills plan and annual training report, the skills development facilitator as the responsible person for the organisation, will sign the document verifying that the information contained in the document is correct and true. It must be noted that the information provided on the workplace skills plan and annual training report must be 100% correct and true. Organisations providing untrue or false information on these documents run the risk of receiving an extremely high fine or even a one-year jail term. Each SETA prescribes how their WSP should be completed. To view an example, visit the link below: Skills Planning (FASSET, 2004) National Skills Development Strategy III Training and development plans of organisations must align with the National Skills Development strategy. This strategy strives to create a workforce that is skilled and contributes to the economic expansion and growth path of the country. The document outlines the governments priorities and needs for training and development. If you follow the link below, you will access the NSDS III. Framework for the National Skills Development Strategy 2011/ /16 (Department of Higher education and training, 2010) Defining organisational roles In order for a Training and Development Plan to be properly completed, with participation from all stakeholders, the organisational roles must be defined. These are described in Table 15. Regenesys Business School 63

69 Table 15: Defining organisational roles TRAINING PHASES TRAINING STAFF S ROLE LINE MANAGEMENT S ROLE Conduct training needs analysis Design tools to survey needs Supply performance data Phase 1: Analysing needs Evaluate which personnel need Review and approve needs analysis and setting objectives training and training objectives Write training objectives Phase 2: Designing the programme Phase 3: Evaluating the Programme Determine the type of programme and training techniques Perform the evaluation or employ an independent contractor Present the findings to management Review and approve training programme and techniques Perform on-the-job training if appropriate Supply the trainer with performance data (showing participant s competency after training) Review evaluation results Developing and implementing the training plan The development of a training plan is based on the WSP. A training plan is a plan that reflects the prioritised training and development needs of an organisation. Depending on the size of the organisation, it can follow a very complex and highly consultative process or a much simpler process of reviewing training and development needs with the line managers. The role of the HR department is to consolidate all the training and development needs of the organisation in a plan so a budget can be allocated and it can be implemented to effectively address the current and future strategic human resources needs of the organisation. A simple process of developing a training and development plan is to: Determine the purpose of the plan is the plan just to determine current training needs or it is to ensure that there is long-term HR sustainability and succession planning in the organisation. If it is a long-term plan, it is important to identify the development needs of individuals because this will ensure that the future needs of the organisations are being catered for. For example, if the intention is to develop current project administrators to become project managers, it is important that a long-term strategy is put in place to ensure that these people are sufficiently trained and developed. Develop a tool (interview or questionnaire tool) that identifies the training and development needs of individuals in an organisation. This tool should also determine the current work that each category of staff is performing and the skills required to perform the task well. A category of staff refers to a grouping of people performing a similar function e.g. receptionists, project administrators, project managers, IT administrators are each examples of different categories of staff. o The tool should then be able to assess each individual s competence in relation to the tasks they are required to perform o This involves firstly determining the key tasks are that they are required to perform in relation to their job description. For example: If you are developing a tool for the category of receptionists, you are required to determine key tasks that they are required to perform such as answer phones professionally, type the messages and it to the right person, etc. Regenesys Business School 64

70 o The corresponding competencies (skills, knowledge and attitudes) required to perform those tasks should then be listed. For example effective communication skills (active listening, being able to paraphrase, repeat, recall correct information); touch type (type 50 words per minute without making any grammatical or spelling mistake); have a positive attitude (be enthusiastic, treat clients in a positive manner). This tool can be given to each line manager, who is required to identify the training and development needs of each person in her/ his team in relation to how they are able to competently perform their core tasks stipulated in their job description. They are therefore required to conduct a gap analysis (analysis of the competence required to perform a task and the actual existing competence to perform the task). A thorough process involves the individual assessing her/ his own competencies as well as the line manager assessing the team members competencies. A line manager compiles a report that summarises the key and prioritises training and development needs per individual or per category of staff. The line manager provides this information to the HR department who is required to put all the unit plans together to develop a comprehensive training and development plan. The training needs are collated and budgeted so that it is clear how much it will cost the institution. Depending on the culture of the organisation and how decisions are made, the HR manager and the respective line managers have to negotiate what the priorities are in relation to the strategic objectives of the organisation. For example, if the strategic objective of the organisation is to expand into different countries, the training and development initiatives will focus on being able to equip individuals to address that objective as opposed to addressing personal development issues. Once the plan has been finalised it has to be approved by the relevant structure. It should then be implemented and monitored by the HR department. A small to medium-sized organisation could use the following basic training plan as a template: Table 16: Basic training plan template Prioritised training needs List of individuals/ category of staff and unit Institution of training Duration of training Budget Timeframe Indicator of success Project management skills 1. John B (project manager IT unit) 2. Peter K (project administrator, HR unit) 3. Mary S (senior administrator, productions unit) Regenesys 3 days R5 000/ person i.e. R total 2011 Training must be accredited. Must all pass their assessments and receive a certificate of competence. Line manager must indicate that they have developed the required competencies. Regenesys Business School 65

71 Communication Skills 1. Charles F (Marketing manager marketing unit) 2. Mandla (BDE sales unit) 3. Jenny G (BDE, sales unit) Regenesys 3 days R Training must be accredited. Must all pass their assessments and receive a certificate of competence. Line manager must indicate that they have developed the required competencies. Recap Questions 1. Explain the following notions and give appropriate examples to show your understanding: a. Training b. Development c. Human resource development d. Technical training e. Management training 2. How does the HR manager ensure that s/he obtains as much value as possible from development programmes? 3. Explain the steps in developing and implementing a training plan? Regenesys Business School 66

72 7.9 PERFORMANCE APPRAISAL Timeframe: 5 hours Learning Outcome: Explain the principles and processes of effective performance appraisal Recommended reading: Multimedia: Section overview Chapter 8: Performance Management and appraisal. How to do effective performance appraisals. (2008) Performance appraisal. (2005) Performance management could be defined as a process of monitoring and evaluating performance, and taking corrective action to improve performance. One aspect of performance management is performance appraisal. This section focuses specifically on performance appraisal Define Performance Appraisal Examine the definition of performance appraisal below: Performance Appraisal is the systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development. Performance appraisal is generally done in systematic ways which are as follows: The supervisors measure the pay of employees and compare it with targets and plans. The supervisor analyses the factors behind work performances of employees. The employers are in a position to guide the employees for a better performance. (Management Study Guide, 2012) From the definition above, it is clear that performance appraisals form part of the bigger picture of the organisation. It forms part of the performance management system of the organisation. Performance management is defined as the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Performance management is a whole work system that begins when a job is defined as needed. It ends when an employee leaves your organisation (CiteHR, 2012). Performance appraisals form part of the system of performance management as it is focussed on the individual whilst performance management will also include the management of the organisations performance. The Importance of performance appraisal Kirk (2012) illustrates the following principles as reasons why performance appraisals are important to organisations. These are discussed in Table 17. Regenesys Business School 67

73 Table 17: The importance of performance appraisals Personal attention Feedback Career path Employee accountability Communication of company goals A performance appraisal is used to discuss individual strengths and weaknesses related to employees job descriptions. The employee has the opportunity to discuss personal concerns with their direct managers. It provides feedback to employees on whether they are fulfilling the requirements of the job they are doing. Performance appraisals are a tool to career management. Employees skills and goals are to be discussed in order to gather information on their retention potential. Employees will be aware that they will have regular evaluations and will be held accountable for their actions. The employee and manager needs to discuss whether the employee is still aware of their importance towards the company s goals. Problems encountered with Performance Appraisal Systems As with any business process, it is important to understand possible problems that could arise. This will assist the decision-makers in the organisation to foresee these problems and ensure a contingency plan to counter the impact that the problem could have. These problems, together with symptoms and solutions are discussed in Table 18 below. Table 18: Performance appraisal system problems PROBLEM SYMPTOM POSSIBLE SOLUTIONS The Measurement Problem Deciding what to measure Ambiguity in roles and responsibilities Job performance is difficult to quantify No clear overall objectives of unit or organisation Appraisal contains only numerical indices Conduct a job analysis and provide a credible position description Identify outcomes for each job Set overall goals for the unit and organisation Train managers to make documented judgements The Judgment Problem Appraising performance Policy Problem Using the results of the appraisal Disagreement on rating Reviewing the official changes ratings Appeals, grievances, accusation of bias, discrimination Top management fail to reward employees who are excellent in staff assessment and development Marginal performers receive promotions or salary increases Develop observable behaviourally based criteria Document performance over time The rater should receive training and practice The performance expectations should be effectively communicated Top management uses Performance Appraisal themselves Policy using PA should be consistently applied Performance contingent-reward system should be in place Regenesys Business School 68

74 The Organisation Problem Recognising how the managers and organisational culture works Appraisal forms not completed Managers complain about time requirements System perceived to belong to designers not users Personnel/ human resource specialist takes enforcer not advisor role System is revised frequently Implement PA using the Performance Management model Access the module hyperlinked below and read more about performance management and appraisal: Chapter 8: Performance Management and appraisal (n.d) Appraisal Process The purpose of the performance appraisal is to determine the extent to which an employee has performed in relation to the job requirements. The role of appraising employees is not solely the responsibility of the HR department or HR manager. It can be done by people who are familiar with the performance of the employee being appraised. It is critical that the appraisal process is as objective as possible to determine its success. A generic performance appraisal procedure is illustrated in Figure 6. Figure 6: Performance appraisal procedure Step 1: Iden-fy performance criteria Step 2: Communicate performance criteria Step 3: Measure performance Step 4: Compare performance with desired criteria (Source: Ngo, 2012) Performance appraisal methods Decision makers in organisation will choose a performance appraisal method that enhances the performance management system of the organisation. Some of the methods of performance appraisal are briefly discussed in Table 19. Regenesys Business School 69

75 Table 19: Performance appraisal methods Critical incident method Weighted checklist Paired comparison analysis Essay evaluation Behaviour anchored rating scale Management by Objectives 360 degree performance appraisal This method focuses on a specific incident where the employee did something well or did something that needs improving. The whole performance interview will focus on how tasks could be performed differently to improve performance and enhance development. This method uses a pre-designed checklist developed from the job description of the employee. Both employee and manager will complete the checklist and discuss the differences in the performance interview. This method relies on a list existing of options which could be compared with other options on the list. The result is calculated as a means to evaluation. Managers are expected to compare strengths and weaknesses of employees by means of writing a report on each employee. This method looks specifically at the behaviour of employees rather than the work outputs of the employees Managers and employees set a list of objectives and assessment is conducted on these objectives. This method requires employees to provide anonymous assessment on their colleagues. (Source: Ngo, 2012b) Access the following slide presentation which summarises different performance appraisal methods: Performance appraisal (2005) Watch the You Tube clip below. interviews. It provides you with an overview of performance appraisal How to do effective performance appraisal (2008) Recap Questions 1. Illustrate the differences between a performance appraisal and performance management.. 2. Why are performance appraisals important for organisations? 3. If it is not solely the role of the HR department to conduct performance appraisals, who else can do it? Explain. 4. How can you ensure that an appraisal process is as objective as possible? 5. Explain the key problems encountered with traditional performance appraisal methods and discuss why the 360 degree system was developed as an alternative? 6. Explain how the appraiser should provide effective feedback to the person being appraised. Regenesys Business School 70

76 7.10 MOTIVATION Timeframe: 6 hours Learning Outcome: Explain theories of motivation Recommended reading: Multimedia: Section overview Chapter 2: management and motivation (Shanks, n.d.) Employee motivation is essential to success. (2011) Motivation determines the way in which any task is approached and handled. Without motivation, even the most technically brilliant employee will produce mediocre or belowaverage work. The challenge for every manager is to therefore ensure that the levels of motivation remain high amongst all staff. However, in order to do this, it is important to recognise that different people are motivated by different factors. A blanket or single approach to motivate staff will therefore not work in an organisation where employees have different needs. The theories of motivation will explain how and why people are motivated or demotivated, so that the most appropriate strategies can be implemented when managing people Motivation Motivation can be defined as: Motivation is the word derived from the word motive which means needs, desires, wants or drives within the individuals. It is the process of stimulating people to perform actions to accomplish specified goals. In the work goal context the psychological factors stimulating the people s behaviour can be: desire for money success recognition job-satisfaction team work (Management study guide, 2012b) Motivation theory resolves that people will do something because they find it important and are motivated to achieve the result of the activity. Do you understand why this is important to employees? If you can motivate employees to be driven to achieve a result because they find it important, performance will increase. Regenesys Business School 71

77 Employee motivation Du Toit, Erasmus and Strydom (2010: 232) argue that three things determine employee performance: A desire to do the job (motivation); The capability to do the job (ability); and The resource to do the job (work environment). It is easier to address the problems related to lack of ability or resources. However, it is far more complex to address issues related to motivation Theories of Motivation From the definitions discussed in section , we can establish that motivation is an internal issue and is driven by the employees themselves. This assumes that it is important that we understand the psychology behind motivation. Cherry (2012) distinguishes between five different theories that explain motivation. These are discussed below. Instinct theory of motivation According to this theory, individuals only behave the way they do because of evolution. This theory explains behaviour such as attachment, play, shame, anger, fear, love, modesty and shyness which is driven by instinct. The problem with the theory is that it explains behaviour but does not describe it. Incentive theory of motivation This theory presumes that people are motivated by rewards. If there is an award attached to a specific activity, the individual will be motivated to do it. In the workplace, this theory will be attached to the compensation provided to employees. To employ the theory will require that you know what rewards motivates employees as each employee is motivated by a different reward. Drive theory of motivation This theory, according to Cherry (2012), assumes that people are motivated to take certain actions in order to reduce the internal tension that is caused by unmet needs. This theory relies heavily on biology and individuals biological component: for example, I will drink a glass of water because I am thirsty. Regenesys Business School 72

78 Humanistic theory of motivation Humanistic theories of motivation are based on the idea that individuals have cognitive reasons to perform actions. This theory is illustrated by Maslow s hierarchy of needs (Figure 7). These theories suggest that people are motivated on different levels. Figure 7: Maslow s hierarchy of needs Self- actualisa-on Personal growth and fulfilment Esteem needs Achievement, status, responsibility, reputa-on Belongingness and love needs Family, affec-on, rela-onships, work group Safety needs Protec-on, security, order, law, limits, stability Biological and Physiological needs Basic life needs - air, food, shelter, warmth, sleep (Source: Chapman, 2010) It is important to understand the individual motivational drives to effectively manage employee productivity Employee Motivation Theories Employee motivation theories have been summarised by Lindner (1998). These are presented in the extract below. Regenesys Business School 73

79 Extract from: Understanding employee motivation Understanding what motivated employees and how they were motivated was the focus of many researchers following the publication of the Hawthorne Study results (Terpstra, 1979). Five major approaches that have led to our understanding of motivation are Maslow's need-hierarchy theory, Herzberg's two- factor theory, Vroom's expectancy theory, Adams' equity theory, and Skinner's reinforcement theory. According to Maslow, employees have five levels of needs (Maslow, 1943): physiological, safety, social, ego, and self- actualizing. Maslow argued that lower level needs had to be satisfied before the next higher level need would motivate employees. Herzberg's work categorized motivation into two factors: motivators and hygiene (Herzberg, Mausner, & Snyderman, 1959). Motivator or intrinsic factors, such as achievement and recognition, produce job satisfaction. Hygiene or extrinsic factors, such as pay and job security, produce job dissatisfaction. Vroom's theory is based on the belief that employee effort will lead to performance and performance will lead to rewards (Vroom, 1964). Rewards may be either positive or negative. The more positive the reward the more likely the employee will be highly motivated. Conversely, the more negative the reward the less likely the employee will be motivated. Adams' theory states that employees strive for equity between themselves and other workers. Equity is achieved when the ratio of employee outcomes over inputs is equal to other employee outcomes over inputs (Adams, 1965). Skinner's theory simply states those employees' behaviours that lead to positive outcomes will be repeated and behaviours that lead to negative outcomes will not be repeated (Skinner, 1953). Managers should positively reinforce employee behaviours that lead to positive outcomes. Managers should negatively reinforce employee behaviour that leads to negative outcomes. References Adams, J. S. (1965). Inequity in social exchange. In L. Berkowitz (ed.), Advances in experimental social psychology. New York: Academic Press. Herzberg, F., Mausner, B., & Snyderman, B. B. (1959). The motivation to work. New York: John Wiley & Sons. Maslow, A. H. (1943). A theory of human motivation. Psychological Review, July Skinner, B. F. (1953). Science and Human Behavior. New York: Free Press. Terpstra, D. E. (1979). Theories of motivation: borrowing the best. Personnel Journal, Vroom, V. H. (1964). Work and motivation. New York: Wiley. (Lindner, J.R Understanding employee motivation. Journal of Extension. 26(3).) These theories of employee motivation will be discussed in more detail in your second year of studies. Read more about motivational theories in the article hyperlinked below: Chapter 2: Management and motivation. (Shanks, n.d.) Regenesys Business School 74

80 Strategies to Motivate Employees According to the Accel-Team (2012) there are seven strategies for motivation: Positive reinforcement (what are you doing right); Effective disciplinary procedures (if employees are not following the code of conduct, there are repercussions to their choices); Treating people fairly and respectfully; Satisfy employees needs; Goals related work activities; Job design restructuring; and Rewards for good performance. These will be discussed briefly below. Set measurable targets Employees need to understand what they are working towards. This requires that targets are set which managers can measure. These targets can be set for short term or long term goals. It is important to set the targets to a timeline and they should be revised frequently. Plan a reward system From previous sections, one can derive that reward systems are very important to motivate employees. Reward systems will only be effective if employers know what rewards will motivate their employees. Positive reinforcement Positive reinforcement is important to increase productivity. Positive reinforcement provides employees with a sense of worth, it encourages good behaviour and it brings synergy into the workplace (Joseph, 2012). Effective disciplinary procedures Disciplinary procedures are often seen in only a negative light. It can however have an effect on the motivation of employees. Employee s are aware of other employees who do not conduct themselves professionally and in accordance with the disciplinary code of the organisation. This can be very de-motivating. Seeing that there is a consequence to unprofessional behaviour could motivate employees, not only to follow the code of conduct, but also as recognition to their own professionalism. Regenesys Business School 75

81 Treating people fairly and respectfully The law is not the only motivation to treat people fairly and respectfully. Individuals who feel needed and respected will work towards goals. Favouritism and disrespectful behaviour crushes individuals worth of self. Low self-worth equals low motivation. Mayhew (2012b) provides the following tips to treating employees fairly in the workplace: Establish a foundation for a mutually respectful employer-employee relationship through communication with employees in a candid and honest manner. Employers who fail to communicate with employees on a regular and consistent basis experience high turnover rates, low employee morale and lack of job satisfaction. Treating employees with respect also means communicating job expectations and acknowledging the contributions employees make to the company's success. Address misunderstandings without becoming defensive or combative--- doing otherwise will create tension and the same type of defensive and combative behaviour from your employees. Develop productive interpersonal relationships with employees within each level of the organisation. Refrain from minimizing the importance of front-line workers whose performance help you meet customers' demands for products and services. Too many organizations devalue the contributions of lesser-paid employees in favour of upper management. Train supervisors and managers to build strong leadership skills. Supervisors and managers who demonstrate these skills provide continuous feedback to employees, recognition for workplace achievements and regular performance reviews in a manner that shows they have an interest in employee development. Provide regular training for current supervisors and managers, and development opportunities for employees who exhibit leadership capabilities. Whenever possible, use your recruitment and selection process to promote from within to create employee loyalty and satisfaction. Practice honest communication in all aspects of the employer-employee relationship. Communication is an essential element in your company's performance management system, as well as keeping employees abreast concerning organizational change and workplace policies. Encourage employee feedback through conducting employee opinion surveys; ensure you analyse employee opinion survey results accurately and follow through with action plans to resolve issues that come to light as a result of employee responses. Ensure your employment practices and decisions are consistent with federal, state and local employment laws. Become an expert in labour and employment laws that prohibit discrimination and unequal treatment so you are capable of making the right hiring decisions. Review your compensation and benefits structure. You should also correct wage and benefit disparities that can lead to discrimination claims and employee complaints. Provide training to human resources staff, and departmental supervisors and managers to ensure all workplace policies and performance standards are fairly and equitably applied to each member of your work force. Satisfy employees needs In relation to Maslow s hierarchy of needs, Ingram (2012) identified the steps needed to satisfy employees needs. These steps are discussed in Table 20 below. Regenesys Business School 76

82 Table 20: Satisfy employees needs Step 1: Compensation Step 2: Comprehensive benefits packages Step 3: Company culture Step 4: Rewards Step 5: Development Ensure that the compensation you offer employees fulfil their physiological needs. Higher compensation packages for the same job titles can attract more qualified applicants. Employees need to feel safe and therefore the benefits packages provided should validate their need for safety. The benefit packages could include medical insurance, retirement benefits, financial safety, and so on. Companies should ensure that the company culture provides employees with the need for belonging. Relationships should form naturally and should be guided by policies and procedures that underline the organisational culture. Rewards and incentives for a job well done will enhance employees esteem needs. This will ensure respect for others and a sense of achievement which will ensure employees repeat actions of excellence. Comprehensive development programmes in the organisation which underlies career growth will ensure the self-actualization needs of employees are met. Job design restructuring Jobs should be designed to ensure that employees can engage in productive activities. If employees are constantly receiving negative feedback in performance appraisal interviews, it does not always mean that the employee is not performing, but could also mean that the job design is inefficient. If this happens, and employees are not listened to, employees can be de-motivated. Job design is essential to motivation and therefore also to employee productivity. Watch the clip below. It discusses how motivation is essential to success. Employee motivation is essential to success (2011) Recap Questions 1. Define motivation and explain why it is so important for organisations 2. Discuss why it is important to motivate employees. 3. Explain the differences between the content and process approaches of motivation. 4. List and explain the theories that fall under each approach. 5. Explain the strategies to motivate staff at an organisational level in detail. Regenesys Business School 77

83 7.11 CONFLICT MANAGEMENT Timeframe: Learning Outcome: Recommended reading: Multimedia: Section overview 5 hours Explain the principles and processes to manage conflict situations effectively Explain the principles and relevance of emotional intelligence for organisations Understanding and developing emotional intelligence. (Serrat, 2009) Conflict styles. (Hung, 2010) When working with people it is inevitable that conflict will arise. But when we are confronted with conflict, our relationships more often than not, turn sour rather than strengthen. Our view of conflict determines to a large extent whether the outcome will be positive or negative Defining Conflict Conflict is a process that begins when one party perceives that another party has been negatively affected, or is about to negatively affect something that the first party cares about. Conflict management can be defined as: The practice of recognizing and dealing with disputes in a rational, balanced and effective way. Conflict management implemented within a business environment usually involves effective communication, problem resolving abilities and good negotiating skills to restore the focus to the company s overall goals. (business dictionary, 2012) The underlying principles of conflict management are that conflict does not necessarily have to be resolved but it needs to be managed in order to overcome unproductive activities. Different views of conflict According to Das and Chatterjee (n.d) there are three views of conflict: Traditional view all conflict is harmful and must be avoided. Human-relations view conflict is a natural and an inevitable outcome in any group. Inter-actionist view conflict is not only a positive force in a group but also that is absolutely necessary for a group to perform effectively. Regenesys Business School 78

84 Approaches to Conflict Resolution Conflict can either be functional or dysfunctional. Each of these is explained below: Functional: Conflict that supports the goals of the group and improves its performance. Dysfunctional: Conflict that hinders group performance. Things to consider when deciding on your approach to conflict resolution: What are the real causes of the conflict? What are the symptoms of the conflict? What interests are the parties trying to serve and how will this affect their choices in resolving the dispute? Resource required? What is your primary conflict-handling intention? Before we continue, you could investigate your own conflict-handling intentions. Indicate how often you rely on each of the following tactics by circling the number that you feel is most appropriate. Rarely Always 1. I argue my case with my co-workers to show the merits of my position I negotiate with my co-workers so that a compromise can be reached I try to satisfy the expectations of my co-workers I try to investigate an issue with my co-workers to find a solution acceptable to us I am firm in pursuing my side of the issue I attempt to avoid being put on the spot and try to keep my conflict with my co-workers to myself I hold on to my solution to a problem I use give and take so that a compromise can be made I exchange accurate information with my co-workers to solve a problem together I avoid open discussion of my differences with my co-workers I accommodate the wishes of my co-workers I try to bring all our concerns out in the open so that the issues can be resolved in the best possible way I propose a middle ground for breaking deadlocks I go along with the suggestions of my co-workers I try to keep my disagreements with my co-workers to myself in order to avoid hard feelings Regenesys Business School 79

85 Competing Collaborating Avoiding Accommodating Compromising Total: Total: Total: Total: Total: (Source: This is an abbreviated version of a thirty-five-item instrument described in M.A. Rahim, A Measure of Styles of Handling Interpersonal Conflict, Academy of Management Journal, June 1983, pp ) Conflict Management Models The Dual Concern Model Kenneth Thomas developed a two-dimensional model of conflict management techniques that takes into account both the individual s concerns and the opponent s concerns. Depending on the two dimensions of concern, the negotiator may decide to use one or all of the conflict management techniques (Carnevale and Pruitt, 1992). An illustration of the model is presented in Figure 8. Figure 8: Dual concern model (Source: Boonsathorn, 1990) The elements of the model are briefly discussed below. Regenesys Business School 80

86 Accommodation Does not necessarily require any interaction between the parties. May simply entail giving the other party what they want. Least confrontational method for dealing with conflict. Advantages: o The conflict ends quickly because you can give the other party what they want o Relationships between the parties is preserved and the other party may feel indebted to the party who accommodated them o Parties do not always get what they want if they rely purely on this method Competing When one party is only concerned about getting what they want and often at the expense of the other party, they rely on a series of tactics, such as irrevocable commitments, threats or promises, and persuasive argumentation. Irrevocable commitments entail two parties entering into a course of action in which neither side is willing to concede. The party who concedes first is the loser. This tactic is useful because it does not require the agreement of the other party to work, nor does the committing party have to be of equal or greater power. For example, management is intent on firing cleaners if they do not return to work; whilst cleaners are intent on remaining on strike until their wages are increased. Both parties wait for the other to give in first. Threats and promises intend to elicit a similar result, but use different mechanisms to reach that result. Promises describe what will happen if an action occurs; but do not explain what will happen if compliance does not occur. For example, management promises workers to increase wages if they stop the strike. However, management does not say what they will do if workers do not go back to work. Threats convey what will happen if the action does not occur. For example, cleaners will threaten to continue the strike so the hospital remains unclean, if wages are not increased. Persuasive argumentation requires considerable skill to influence the other party to give up something that is very dear to them, change a situation that they enjoy, or lower their aspirations. When using this tactic, the party employing this tactic will outline the unattractive consequences to persuade the other party to concede. For example, management states that salaries will not be increased. The alternative is the retrenchment of staff Avoidance This is often the most common response because people generally want to avoid creating an uncomfortable situation. This could be a useful strategy to employ if the issues involved are trivial and if both parties do not care about the outcome This strategy is used when one party wants to cool down first before confronting the situation, or wants to draw in a more appropriate person to resolve the conflict Regenesys Business School 81

87 Negotiation Negotiation entails the process of negotiating giving and taking between two or more parties. Negotiation incorporates the process of compromising and collaborating. Watch the YouTube clip below which explains different conflict styles. Conflict style (Hung, 2010) Causes of Conflict There are many causes to conflict in the workplace. Bell and Hart, two psychologists (In mindtools.com, 2012) identified eight causes of workplace conflict. The most significant are discussed in Table 21 below. Table 21: Causes of conflict Conflicting resources Conflicting styles Conflicting perceptions Conflicting goals Conflicting pressures Conflicting roles Different personal values Unpredictable policies We need resources to perform our jobs. Often conflict occurs when more than one employee needs the same resource. Throughout the Study Guide, we discussed how individuals are different. Employees also have different working styles. Some people like to work under pressure whilst others do not. These styles could cause conflict. All individuals have different views and perceptions of the world. These perceptions can cause major conflict, especially if employees are disrespectful towards these differences. When employees received different goals from their managers, it is likely to cause conflict. For example, a manager tells one employee that calls must be answered and dealt with as quickly as possible whilst s/he says to another employee that s/he needs to deal with calls in-depth. Pressure in the workplace is always a hotpot of conflict. When these pressures are conflicting it might become a problem. Sometimes employees are expected to perform roles outside of their job descriptions. It could however become a point of conflict if this happens more often than none. Ethical conflicts could erupt when personal values differ. When rules change in the workplace and is not communicated, conflict could be experienced. Regenesys Business School 82

88 Commonly Mistakes and Solutions when Resolving Conflict The following are common mistake made when resolving conflict: Poor listening; Poor use of questions; Giving too much information at once; Explaining the issues badly; Confusing negotiation with debate ; Overacting to stress; Rejecting alternatives; and Not using team members effectively. The following are possible solutions overcome the common mistakes made: Be democratic; Focus on the problem, not the person; Be a good listener; Be a good process observer; Be alert and sensitive; Understand people s feelings and thoughts; Be able to represent a mandate and report back; Be able to create doubt in the minds of others; Plan and prepare; Exercise communication skills; Be able to persuade; Exercise a sense of humour; Use emotions effectively; Use and read body language effectively; Be charismatic; Ensure credibility; and Be creative and intuitive. Dealing with the anger of others Give the person a chance to show their anger before you try to explain or apologise. Then you can have a calm discussion. Find out whether the person is angry with you personally. Try using empathetic listening. Remain calm yourself. Accept the other person s angry feelings. Regenesys Business School 83

89 Do s and Don ts of Negotiations Do: Make sure you know how much authority you have to negotiate (get mandates, consult your constituency) Choose negotiators who you think will do a good job Be well prepared Be your normal self Be calm Be respectful Be a good listener Have confidence in yourself Be reasonable Negotiate those items first that you feel will be easily agreed on End meetings on a positive note. Think carefully before you make promises. Tell the truth. Don t: Don t let the strategy stay unstructured Don t think your team will be stronger than the other team Don t argue amongst yourselves at the table Don t lose your temper, unless it is part of your strategy Don t make compromises that your constituency will not accept Don t be defensive. Don t blame others. Don t apologise Don t interrupt too often Don t give all your information at once Don t allow the meeting to end with bad feelings, unless that is part of your strategy Don t be pressured into an agreement Don t make promises you cannot keep Don t lie or break trust Don t raise unrealistic expectations Emotional Intelligence in Organisations Daniel Goleman (Chapman, 2012b) introduced the notion of emotional intelligence (EQ) to the business world. It is presently a well-acknowledged fact that EQ does matter and does influence success in just about all spheres of a person s life. Some research suggests that intellectual quotient (IQ) (or our cognitive ability) only contributes around 10% 20% towards success in life. The rest is determined by our emotional intelligence and an array of non-cognitive and social capabilities, such as spiritual intelligence, social intelligence, environmental intelligence, etc. IQ does not prepare us to cope with the pressures of our environment; neither does it assist in Regenesys Business School 84

90 reading and reacting appropriately to subtleties in social settings. EQ is what helps us make (and often find) our way in a very complex world. In this section we will discuss emotional intelligences in organisations. Emotional intelligence is the innate potential to feel, use, communicate, recognise, remember, describe, identify, learn from, manage, understand and explain emotions. Emotional Intelligence is a relatively new field of study. According to Daniel Goleman, emotional intelligence makes us aware of our own feelings and the feelings of others. It enables empathy, motivation, compassion and an ability to respond skilfully to pleasure and pain. EQ is increasingly relevant to organisational development and developing people, because the EQ principles provide a new way to understand and assess people's behaviours, management styles, attitudes, interpersonal skills, and potential. Emotional intelligence is an important consideration in human resource planning, job profiling, recruitment interviewing and selection, management development, customer relations and customer service, and more. EQ brings compassion, humanity and love to the workplace (Wilber et al., 2008). Domains of emotional intelligence For EQ to be successful, it requires the effective awareness, control and management of one's own emotions as well as those of other people. EQ embraces two aspects of intelligence: Understanding yourself, your goals, intentions, responses and behaviour. Understanding others, and their feelings. Goleman (Chapman, 2012b) identified the five 'domains' of EQ as: 1. Knowing your emotions; 2. Managing your own emotions; 3. Motivating yourself; 4. Recognising and understanding other people's emotions; and 5. Managing relationships, i.e. managing the emotions of others. Figure 9: Domains of Emotional Intelligence Self- Awareness Social Awareness Emo-onal Intelligence Self- Management Rela-onship Management (Source: Chapman, 2012b) Regenesys Business School 85

91 Read the article below to enhance your understanding of emotional intelligence. Understanding and developing emotional intelligence. (Serrat, 2009) Recap Questions 1. What is conflict? Why is it important to manage it effectively in organisations? 2. How does your view of conflict influence the way in which conflict is resolved? 3. Describe models of addressing conflict in an organisation. 4. Explain how the actions of a manager can cause conflict and explain how this conflict can be addressed. 5. Explain the principles of emotional intelligence. 6. Explain how emotional intelligence could be used to manage conflict. Regenesys Business School 86

92 7.12 ORGANISATIONAL CULTURE AND REWARDS Timeframe: Learning Outcome: Recommended reading: Multimedia: Section overview 3 hours Examine the important role that organisational culture, and reward systems perform in the institution How to change your culture: organizational culture change. (Heathfield, 2012) It s all about culture what is corporate culture? (2010) In all the previous sections we have alluded to organisational culture as well as reward systems. In this section we will examine these issues as a conclusion to this module What is an Organisational Culture? Organisational culture can be described as the personality of the organisation. The organisational culture is described in the assumptions, values, norms and tangible signs of the organisation. The organisational culture controls how employees behave towards themselves and towards people outside of the organisations. Other reasons why organisational culture is important (Management study guide, 2012c): A healthy culture encourages employees to be motivated and stay loyal towards the organisation Healthy competition is promoted amongst employees because all rewards in the organisation is shared A healthy culture establishes a healthy brand image All employees shares a common platform as all will be treated equally Employees will be united Watch the clip below. It describes the principles of Organisational culture. It s all about culture what is corporate culture? (2010) Cultural Typologies Sonnenfeld (in Robbins, 1993) described types of organisational culture which could be used to match individuals to the culture. He identified four cultural types as follows: Regenesys Business School 87

93 Academy These types of organisation are characterised by a place for people who want to master each step of the new job they hold. These organisations recruit young people and provide them with specialised training and then provide them with specialised functions. Club These types of organisation value highly fitting in, loyalty and commitment. Age and experience are important factors. Baseball Team These types of organisation value entrepreneurship, risk-taking and innovation. Talented people are selected and then rewarded for being able to demonstrate their abilities to take risks or be innovative. There is a high turnover in these organisations because a great deal of incentives and freedom is given to star performance. Fortresses These types of organisation are focussed on survival, as they attempt to keep abreast of external trends. They offer little job-security, but plenty of opportunity to exercise change management strategies Characteristics of an Organisation s Culture There are ten characteristics that can describe organisational culture (Robbins, 1993:602). These are discussed in Table 22. Table 22: Characteristics of an organisation s culture Member Identity: Group Emphasis: People Focus: Unit Integration: Control: Risk Tolerance: The extent to which the employee identifies with the organisation as a whole, rather than with his/her job or area of expertise. The extent to which work activities are organised around groups rather than individuals. The extent to which management decisions take into account the effect of outcomes on people within the organisation. The extent to which units within the organisation are encouraged to operate in a coordinated or interdependent manner. The extent to which rules, regulations and direct supervision are used to oversee and control employee behaviour. The degree to which the employees are encouraged to be assertive, innovative and risktaking. Regenesys Business School 88

94 Reward Criteria: Conflict Tolerance: Means-End Orientation: Open-System Focus: The extent to which employees rewards (e.g. salary increases and promotions) are allocated according to performance rather than seniority, favouritism, or other nonperformance factors. The extent to which employees are encouraged to criticise openly and raise conflict. The extent to which management focuses on results or outcomes rather than on the techniques and processes used to achieve the outcomes. The extent to which the organisation monitors and responds to changes in the external environment Maintaining a Culture Organisational culture is what sets one organisation aside from another. Organisations usually have a dominant culture and several sub-cultures. A dominant culture would be the main culture to which most people subscribe. Sub-cultures would be the unique individual cultures stemming from the units or sections within the larger organisation. A healthy organisation would have subcultures that are aligned with the dominant culture. On the other hand, a dysfunctional organisation would have sub-cultures that undermine and compete with the dominant culture. Selection process The central aim of a selection process is to identify candidates who will be able to perform the tasks and functions of the organisation effectively and efficiently. In most cases, selection processes will enable the identification of a person who will generally fit in the culture of the organisation. But sometimes, a company may be looking for someone different. Top management The behaviour, actions, attitudes and even dress code of senior management also affects the culture of the organisation. If senior management expects employees to meet deadlines, but is itself unable to meet deadlines, a mixed message is sent. The culture of valuing time and utilising it effectively will most probably be undermined. Socialisation Even though a company has selected and recruited a person whom it believes matches the culture of the organisation, these new employees might not fully subscribe to or understand the existing organisational culture. Many organisations therefore spend time re-socialising these employees to become familiar with the organisational culture. Read the following article: How to change your culture: organizational culture change (Heathfield, 2012) Regenesys Business School 89

95 Role of rewards The level of motivation and future performance is directly influenced by the extent to which the employee s past and present performance is recognised and moreover rewarded. Some organisations still reward or provide incentives based on seniority or hours worked i.e. inputs rather than outputs. The problem with this form of rewarding is that the system of providing rewards is structured inequitably, which will eventually breed resentment and de-motivation. The performance management system should essentially be the tool that determines and rewards good performance. The theories on motivation demonstrate that money alone does not motivate people. In fact many people are not motivated by money alone and require the fulfilment of other needs in order to be motivated (e.g. trusting work environment, acknowledgement, growth, etc.). Therefore, when determining what rewards people should receive, a holistic and innovative approach should be adopted. Recap Questions 1. Define and explain the characteristics of organisational culture? 2. Why is it important to manage organisational culture? 3. How can an appropriate organisational culture be developed? 4. Critically review the role of rewards in motivating staff. 5. How is organisational culture related to reward systems in an organisation? Regenesys Business School 90

96 8. REFERENCES Abdullah, H. 2009, Definitions of HRD: Key concepts from a national and international context, European Journal of social sciences, (10) 4, Accel-team.com. 2012, Employee motivation: theory and practice, (accessed online 15 September 2012). Barnett, S. 2003, Teams in the workplace, Technology studies in Education, (assessed online 13 September 2012). Boonsathorn, W. 1990, Understanding conflict management styles of Thais and Americans in multinational corporations in Thailand. International Journal of conflict management. (18) 3, Business Dictionary.com. 2012, Conflict management, (accessed online 15 September 2012). Carnevale, P.J., Pruitt, D.G. 1992, Negotiation and mediation. Annual reviews Psychology. 43, Change management.com. 2012, Examining the definition of change management, (accessed online 15 September 2012). Chapman, A. 2010, Maslow s hierarchy of needs, (accessed online 15 September 2012). Chapman, A. 2012b, Emotional intelligence (EQ), (accessed online 15 September 2012). Cherry, K. 2012, Theories of motivation: a closer look at some important theories of motivation, (accessed online 15 September 2012). CIPD. 2012, History of HR and the CIPD, (accessed online 20 September 2012). CiteHR.com. 2012, Definition: Performance management, (accessed online 15 September 2012). Clarke, H. 2003, Human Resource A Practical Guide to South African Legislation. Cape Town: CTP Book Printers. CommLab India. 2010, Multi-cultural team management, wxch287ws (accessed online 13 September 2012). Regenesys Business School 91

97 Creasy, T. 2012, Helping others understand change management in relation to project management and organizational change, (accessed online 15 September 2012). Das, S., Chatterjee, S. n.d, A presentation on conflict management, (accessed online 15 September 2012). Department Higher Education and Training. 2010, Framework for the National skills development strategy 2011/ /16, (accessed online 13 September 2012). Department of Labour. 2012, Employment Equity Act, (accessed online 12 September 2012). Department of Labour. n.d, Introduction to the Quality Council for Trades and Occupations (QCTO), (assessed online 12 September 2012). Du Toit, G.S. Erasmus, B.J. & Strydom, J.W. (Eds.). 2010, Introduction to Business Management. 8 th Edition. Cape Town: Oxford University Press. Edenborough, R. 2005, Assessment methods in recruitment, selection and performance, ection%20and%20performance.pdf (accessed online 13 September 2012). Employee motivation is essential to success. 2011, (accessed online 15 September 2012). Erasmus, B., Schenk, H., van Wyk, M. 2007, South African Human Resource management: theory and practice. Cape Town: Juta & Co Ltd. FASSET. 2004, Skills Planning, (accessed online 15 September 2012). Fougler, D. 2004, Models of the Communication Process, (accessed online 13 September 2012). Frank, L. n.d, Effective Communication. Bulletin #6103. Group works. Government of Newfoundland and Labrador. 2008, Human Resource / workforce planning and departmental planning A Guide to integration and alignment, (assessed online 13 September 2012). Heathfield, S. 2012, How to change your culture: organizational culture change, (assessed online 7 May 2012). Regenesys Business School 92

98 Heathfield, S.M. 2012, What is Human Resource Management? viewed 12 September 2012, Heller, R. 1998, Essential Manager s Manual. London: Dorling Kindersley. How to do effective performance appraisals. 2008, (accessed online 13 September 2012). HR Guide. 1999, Job Analysis: overview, (accessed online 12 September 2012). HR-exec.com. n.d, Job analysis and evaluation methods. viewed 12 September 2012, Hung, S. 2010, Conflict styles, (accessed online 15 September 2012). Ingram, D. 2012, How to satisfy employee needs, (accessed online 15 September 2012). It s all about culture what is corporate culture? 2010, (accessed online 13 September 2012). Job description / person specification examples using SCQF. n.d, 20SCQF.pdf (accessed online 12 September 2012). Joseph, C. 2012, Why is positive reinforcement important in the workplace, (accessed online 12 September 2012). Keefer, A. 2012, What is the proper sequence of steps for the HR forecasting process? viewed 12 September 2012, html (accessed online 12 September 2012). Kirk, A. 2012, Importance of Performance Appraisals, LearningRxcom. 2010, Increase Brain Power How to work out your brain and get smarter, (accessed online 12 September 2012). Lee, S. 2012, The Five Stages of Team Development, (assessed online 13 September 2012). Lindner, J.R. 1998, Understanding employee motivation. Journal of Extension. (26) 3 Lorette, K. 2012, Three key elements of the Human Resources planning model, (accessed online 12 September 2012). Maddux, R. B. 1988, Team Building: An Exercise in Leadership. London: Kogan Page. Regenesys Business School 93

99 Management Study Guide. 2012, Performance appraisal, (accessed online 15 September 2012). Management Study Guide. 2012b, What is motivation?, (accessed online 15 September 2012). Management Study Guide. 2012c, Importance of organization culture, (accessed online 15 September 2012). Mayhew, R. 2012, Primary responsibilities of a Human Resource manager, (accessed online 12 September 2012). Mayhew, R. 2012b, How to treat employees fairly in the workplace, (accessed online 12 September 2012). Mayor, D. 2012, What is Emotional Intelligence (EI), (accessed online 12 September 2012). Michelon, P. 2011, What is a cognitive ability / What are cognitive abilities?, (accessed online 12 September 2012). Mindtools.com. 2012, Bell and Hart s eight causes of conflict: understanding the causes of workplace tension, (accessed online 15 September 2012). Nayab, N. 2011, A history of Human Resource Management, (accessed online 23 September 2012). Neill, J. 2007, Group Dynamics, processes and development, (assessed online 13 September 2012). Ngo, D. 2012, Performance appraisal procedure, (accessed online 15 September 2012). Ngo, D. 2012b, Performance appraisal methods, (accessed online 15 September 2012). Performance appraisal. 2005, (accessed online 15 September 2012). Regenesys Business School 94

100 Recruiter.com. 2012, Articles and news on recruitment methods, (accessed online 13 September 2012). Reward management Associates.com. 2001, Definitions, (accessed online 12 September 2012). Robbins, S. 1993, Organisational Behaviour. USA: Prentice Hall. Serrat, O. 2009, Understanding and developing emotional intelligence, Asian Development Bank, (49). Shanks, N.H. n.d, Chapter 2: Management and motivation, (assessed online 15 September 2012). SHRM HR Content. 2011, Chapter 8: Performance Management and appraisal, Part III: Developing and Managing, n.d, (assessed online 13 September 2012). Singh, D. n.d, Communication skills, (accessed online 14 September 2012). Stander, M. 2003, Understanding work teams. In: Robbins, S.P., Odendaal, A. & Roodt, G. Organisational Behaviour. Global and Southern African perspectives. 1 st Edition. Cape Town: Pearson. Swanepoel, B. (Ed.), Erasmus, B. & Schenk, H. 2009, South African Human Resource Management. 4 th Edition. Cape Town: Juta. Taylor, A. 2011, Human Resource Management functions, (accessed online 12 September 2012). The South African Labour Guide. 2012, Summary of the Employment Equity Act, 55 of 1998, issued in terms of Section (25) 1, (accessed online 12 September 2012). The South African Labour Guide. n.d, Skills development: A Comprehensive Guide, (accessed online 15 September 2012). Timmel, S., Hope, A. 1988, Community Workers Handbook. Zimbabwe: Mambo Press. Tutor2u.com. 2012, People management recruitment methods, (accessed online 13 September 2012). Wilber, K., Patten, T., Leonard, A., Morelli, M. 2008, Integral life practice: a 21 st century blueprint to physical health, emotional balance, mental clarity and spiritual awakening. Boston: Random House. Regenesys Business School 95

101 9. APPENDIX 1: OVERVIEW OF SOUTH AFRICAN HR LEGISLATION Introduction South Africa's labour legislation is among the most progressive in the world. It provides to the institutions a set of rules, and guidance on how to settle disputes and ensure fairness in the workplace. Legislation in South Africa changed drastically after the 1994 elections. Labour legislation was affected the most. The changes were severe to ensure that labour legislation addressed all the previous unfairness and discrimination in the workplace. These changes in the legislation had a big impact on the field of Human Resource Management. Some major changes in the legislation were the enforcement of an Employment Contract, the definition of an employee and the right to belong to a union The Constitution of South Africa Act, 1998 Du Toit, Erasmus and Strydom (2010: 248) argue that the Constitution of 1996 is the single most important piece of legislation in South Africa. The most critical aspect of the Constitution of 1996 in relation to human resource management is the Bill of Rights (Chapter II of the Constitution). You can access the Constitution of South Africa through the hyperlink below. Constitution of South Africa Act, Legislation relevant for Human Resource Management The following Acts have a major impact on the human resource department: Labour Relations Act, No. 66 of 1995 Basic Conditions of Employment Act, No. 75 of 1997 Skills Development Act, No. 97 of 1998 Skills Development Levies Act, No. 9 of 1999 Employment Equity Act, No. 55 of 1998 Occupational Health and Safety Act, No. 85 of 1993 Compensation for Occupational Injuries and Diseases Act, No. 130 of 1993 Unemployment Insurance Act, No. 63 of 2001 Regenesys Business School 96

102 Human resource managers and line managers might have to read the entire legislation if required. Ensure that you are working from the relevant version as many of these legislations have been amended. For example, important changes were made to the LRA and the BCEA in Copies of the Acts can be obtained from the Government Printer. Only the following Acts have been briefly summarised in this Study Guide: Labour Relations Act, No. 66 of 1995 Basic Conditions of Employment Act, No 75 of 1997 Skills Development Act, No 97 of 1998 Skills Development Amendment Act No 26 of 2011 Employment Equity Act, No 55 of Labour Relations Act, No. 66 of 1995 This Act came into operation in November This was one of the first steps in the process to reform the South African Labour Legislation. The purpose of the Act is provided below: The purpose of this Act is to advance economic development, social justice, labour peace and the democratisation of the workplace by fulfilling the primary objects of this Act, which are: a) to give effect to and regulate the fundamental rights conferred by Section 27 of the Constitution; b) to give effect to obligations incurred by the Republic as a member state of the International Labour Organisation; c) to provide a framework within which employees and their trade unions, employers and employers' organisations can-collectively bargain to determine wages, terms and conditions of employment and other matters of mutual interest and formulate industrial policy; and d) to promote Section 27, which is in the Chapter on Fundamental Rights in the Constitution entrenches the following rights: (1) Every person shall have the right to fair labour practices. (2) Workers shall have the right to form and join trade unions, and employers shall have the right to form and join employers' organisations. (3) Workers and employers shall have the right to organise and bargain collectively. (4) Workers shall have the right to strike for the purpose of collective bargaining. (5) Employers' recourse to the lock-out for the purpose of collective bargaining shall not be impaired, subject to subsection 33(l)." (i) orderly collective bargaining; (ii) collective bargaining at sectoral level; (iii) employee participation in decision-making in the workplace; and (iv) the effective resolution of labour disputes. Regenesys Business School 97

103 The Labour Relations Act (LRA) provides a framework for collective bargaining and policymaking between trade unions, employers and bargaining councils. This act includes provisions for strikes, lockouts and other industrial action. It also provides a framework for the resolution of labour disputes. The act further promotes self-governance and volunteerism in labour relations. It is also important to note that any lawful agreements reached between a union and an employer may take precedence over a related provision in the LRA. It simplifies the law to make it accessible even to small businesses as they may apply for exemptions from centralised agreements and it favours conciliation and negotiation as a way of settling disputes. The best aspect of the Act is that it covers the whole spectrum of the labour market. The Act is quite clear on the definition of who is covered, and it excluded only the Defence Force, Secret Services and Intelligent Services. The LRA made provision for basic freedom of association and the guarantee of it, but it excludes the three departments mentioned. The Act does not only make provision for striking, but also for sympathy strikes, as well as the right to picket. The Act makes provision for employees participation in decision-making within their organisations. This means that employees can, in organised forums, raise concerns and participate in decision making. The LRA created the opportunity for the development of workplace forums. These forums create an opportunity for employees to voice their grievances and to discuss matters of concern. Another huge advantage is the regulations in terms of the process of conciliation in respect of disputes followed by either arbitration or access to the Labour Court. The process for the conciliation mediation and arbitration (CCMA) is very clear and this makes dealing with issues so much easier. The Act makes the process so much quicker and cheaper to resolve. The Act further makes provision for agency shop agreements and therefore a platform to negotiate better conditions of employment. The Act further makes provision for bargaining councils. The Act prohibits unfair labour practices and gives clear guidance regarding unfair dismissals. It also protects employees against victimisation for exercising any rights in terms of the Act. The fairness of the Act lies in the fact that it also makes provision for employers to belong to and establish employers organisations and participation in their activities. As the employees have the right to strike so does the employer have the right to lock out. One huge advantage is that the act makes provision for workplace restructuring through information-sharing in the workplace. This might imply job losses, without unrest and violence, through good communication and information sharing. The Act makes provision for quick and cost effective dismissals in matters that are stipulated as fair. In the past these cases were also taken to court, at great cost. Impact of the Act on Human Resource Management The Labour Relations Act is an excellent guide to support the Human Resource Manager in the management of employer relationships. One of the major aspects that the Labour Relations Act addressed is conflict in the workplace. Please read through the relevant section to familiarise yourself with the grievance and dispute resolutions in the Act. It is important for you to distinguish Regenesys Business School 98

104 between the grievance procedure and the disciplinary procedure of the organisation. Take note of the Dispute Resolution structures. Note the different types of disputes based on rights as well as interest. The role of the CCMA is very important in the understanding of the Labour Relations Act. This is discussed later in the Study Guide. You can access the act and the amendments to the act through the hyperlinks below: Labour Relations Act, 1995 < Labour Relations Amendment Bill, 2012 < Basic Conditions of Employment Act, No. 75 of 1997 The preamble to the Basic Conditions of Employment Act (BCEA), No 75 of 1997 reads as follows: To give effect to the right to fair labour practices referred to in section 23(1) of the Constitution by establishing and making provision for the regulation of basic conditions of employment; and thereby to comply with the obligations of the Republic as a member state of the International Labour Organisation; and to provide for matters connected therewith. This Act applies to both the public and the private sectors. It protects the rights of the employee, but also puts the responsibility in the hands of the employer. Although the act makes provision for the rights of the employees they are also called to task to ensure that they adhere to the tasks and duties as agreed upon in the contract. The Act stipulates guidelines and governs aspects such as working time, leave, pay, deductions from pay, termination and administration, and outlaws forced and child labour. The main thing to remember about the Basic Conditions of Employment Act is that work contracts may not impose conditions below these minimum requirements. Even if you get the employees signature and agreement, it is illegal to go against the statutory requirements of the Act. The Act stipulates the minimum rules and standards that the contract of employment has to adhere to. This Act made provision for a fixed salary every month on a specific date. This Act specifically addresses the various leave aspects. The Act made provision for paid vacation leave. All employees are entitled to 21 days consecutive leave. One of the big strengths is the maternity leave and safety measures that were adopted in the Act. Although still unpaid, the mother as well as the new father has the right to take leave when the mother is giving birth to the baby. Previously employers discriminated against pregnant women and this Act changed the rights of women drastically. This Act also has a very soft or humane approach for the family and one tends to think that the family values were treasured in the Act. The Act makes provision for leave specifically for family responsibility. Linked to the family values is the clause on child labour and the prohibition of employment of any children. Regenesys Business School 99

105 As mentioned above, the BCEA underlines the responsibilities of the employer and employee. These are listed in Table 23. Table 23: Employer and employee responsibilities according to the BCEA Employer Accept the employee in his employment. By doing this the employer agrees to remunerate the employee based on the services that the employee will render to the employer. Provide the employee with work. Pay the employee the remuneration agreed on. This is the most important obligation from the employer s side. Pay a quantum meruit. This means when an employee does not complete the job or absconds; the employer does not need to pay the remuneration as agreed on. The quantum meruit is a reasonable amount payable for the services rendered. Provide safe working conditions. This was not in previous Acts and is definitely one of the biggest strengths of this Act. Employee Make him- or herself available to deliver a certain task or duty. Have the necessary skills to perform the task with reasonably efficiency. Obey the employer within reason. As the employer has authority over the employee the employer is obliged to give instructions to the employee. This also underpins the requirement that employee should respect the employer. Be the subordinate to the employer. Maintain bona fides. While the employee is in the service of the employer, the employee carries and gathers very important information of the business. The Act expects the employee to Act in good faith regarding the information of the employer. The Act makes provision that the employee may not disclose information regarding the business to others outside the business. Exercise reasonable care of the employer s property. Impact of the Act on HRM The BCEA is one of the most important Acts that a Human Resource Manager will use on a daily basis. This Act regulates employment and more specifically the employment contract to protect the employee where there is no collective agreement or basic measure. The Act gives a clear guide for the drafting of contracts and the management of employee employer relationships. It seeks to enforce, establish and regulate the variations of Basic Conditions of Employment. It gives clear guidelines to the Human Resource Manager as to how to draft the Contract of Employment so that all the minimum requirements are adhered to. According to Clarke (2003:18) the following are advantages of the BCEA to the Human Resource Manager: The Act makes provision for the employer to be in charge of hire and dismissal of employees in a regulated environment. This purely means that the employer has clear guidelines, provided by the Act, within which the employer can act. Ability to structure working conditions appropriately to the advantage of the business. Enter into a collective agreement with a representative trade union regarding terms and conditions of employment but providing certain minimum legal requirements. The Act also makes provision for the employer to belong to an employer s organisation. Regenesys Business School 100

106 Regulate overtime. Previously the overtime was not regulated and as long as the Human Resource manager acts within the guidelines of the Act there should not be any disputes regarding the working or payment of overtime as the guidelines are very clear. Public holidays are regulated in that staff can work on public holidays provided that they get paid for doing so. Leave has also been regulated and important guidelines were accepted in the Act. An important point is that staff should take their leave in accordance with the needs of the business. Insist that staff take their annual leave and not paid leave in lieu. This is very important as staff in the past saved their leave and then had the company pay the leave out in terms of monetary value. Pay severance packages in terms of a set of formulae. Severance pay is regulated in the Act and makes decisions much easier without cases being referred to the labour court. (Clarke, 2003: 18). You can access the Act by visiting the Website below: Basic Conditions of Employment Act, 1997 < %20Basic%20Conditions%20of%20Employment.pdf>. Basic Conditions of Employment amendment, 2012, < Skills Development Act, No 97 of 1998 The purpose of the Skills Development Act No. 97 of 1998 (SDA) is to develop the skills of the workforce, improve the quality of life of the workers, and improve productivity and to increase selfemployment. The Act further encourages the employers to use the workplace as an active learning environment and to encourage workers to participate in student ships. If employers are up to date with their payment of Skills Development Levies (SDL) they can claim skills grants from their Sector Education and Training Authority (SETA). The purposes of the SDA are described in section two as: 1. Develop the skills of the South African workforce To improve the quality of life of workers, their prospects of work and labour mobility; To improve productivity in the workplace and the competitiveness of employers; To promote self-employment; and To improve the delivery of social services. 2. Increase the levels of investment in education and training in the labour market and to improve the return on that investment; 3. Encourage employers: To use the workplace as an active learning environment; To provide employees with the opportunities to acquire new skills; To provide opportunities for new entrants to the labour market to gain work experience; and To employ persons who find it difficult to be employed; Regenesys Business School 101

107 4. Encourage workers to participate in student ship and other training programmes; 5. Improve the employment prospects of persons previously disadvantaged by unfair discrimination and to redress those disadvantages through training and education; 6. Ensure the quality of education and training in and for the workplace; 7. Assist: work-seekers to find work; retrenched workers to re-enter the labour market; employers to find qualified employees; and 8. To provide and regulate employment services. The Act can be accessed at: Skills Development Act, 1998< The SDA must be read with the Skills Development Amendment Act which is discussed next Skills Development Amendment Act, No. 26 of 2011 The Skills Development Amendment Act (SDAA) has been developed and amends specific sections in the SDA. The most significant is summarised as follows: To amend the Skills Development Act, 1998, so as to define certain expressions; to broaden the purpose of the Act; to provide anew for the functions of the National Skills Authority; to provide anew for the composition of the National Skills Authority; to provide anew for the function of the SETAs, to provide for apprenticeships; to make further provision in respect of the implementation of employment services; to increase the quality and quantity of artisans; to repeal remaining sections of the current Manpower Training Act, 1981; to provide for Skills Development Institutes; to provide for the Quality Council for Trades and Occupations; to clarify the legal status of Productivity South Africa; to clarify the legal and governance status of the National Skills Fund; and to provide for matters connected therewith. The complete Act can be access on the Website below: Skills Development Amendment Act, This has a great impact on training and development in South Africa. The biggest changes are the inclusion of the Quality Council for Trades and Occupations (QCTO). To understand the functions of the QCTO read the article published by the Department of Labour indicated below: Regenesys Business School 102

108 Introduction to the Quality Council for Trades and Occupations (QCTO) (Department of Labour. n.d.) Employment Equity Act, No. 55 of 1998 According to the Department of Labour: the Employment Equity Act (EEA) applies to all employers, workers and job applicants, but not members of the: National Defence Force; National Intelligence Agency; and South African Secret Service. The provisions for affirmative action apply to: employers with 50 or more workers, or whose annual income is more than the amount specified in Schedule 4 of the Act; municipalities; organs of State; employers ordered to comply by a bargaining council agreement; any employers who volunteer to comply. (Source: Department of Labour, 2012) The South African Labour Guide (2012) provides a summary of the EEA. This is provided below: Summary of the Employment Equity Act 1. Chapter 1 Definitions, purpose, interpretation and application 1.1 Purpose of the Act: Section 2 The purpose of the Act is to achieve equity in the workplace, by a) promoting equal opportunity and fair treatment in employment through the elimination of unfair discrimination; and b) implementing affirmative action measures to redress the disadvantages in employment experienced by designated groups, to ensure their equitable representation in all occupational categories and levels in the workforce. 1.2 Application of the Act: Section 4 a) Chapter II (sections 5 11) applies to all employers and employees. b) Chapter III (sections 12 27) applies to designated employers. c) A designated employer means an employer who employs 50 or more employees, or has a Regenesys Business School 103

109 total annual turnover as reflected in Schedule 4 of the Act, municipalities and organs of state. Employers can also volunteer to become designated employers. d) A designated group means black people, women, or people with disabilities. e) The South African National Defence Force, National Intelligence Agency, and South African Secret Services are excluded from this Act. 2. Chapter 2 - Prohibition of Unfair Discrimination 2.1 No person may unfairly discriminate, directly or indirectly, against an employee in any employment policy or practice, on one or more grounds including race, gender, pregnancy, marital status, family responsibility, ethnic or social origin, colour, sexual orientation, age, disability, religion, HIV status, conscience, belief, political opinion, culture, language, and birth. 2.2 It is not unfair discrimination to promote affirmative action consistent with the Act or to prefer or exclude any person on the basis of an inherent job requirement. 2.3 Medical Testing: Section 7 a) Medical testing of an employee is permissible only when legislation requires testing or when this is justifiable for various reasons. b) HIV testing is prohibited unless such testing is determined to be justifiable by the Labour Court. 2.4 Psychological Testing: Section 8 Psychological testing and similar assessments are prohibited, unless the test is scientifically valid and reliable, can be applied fairly to all employees, and is not biased against any employee or group. 2.5 Disputes concerning this Chapter : Section 10 a) An employee, or applicant for employment, may refer a dispute concerning alleged unfair discrimination (or medical or psychological testing) to the CCMA for conciliation. This must be done within six months of the alleged discrimination (or testing).. b) If a dispute is not resolved at conciliation, a party may refer it to the Labour Court for adjudication. The parties to a dispute may also agree to refer the dispute to arbitration. c) Unfair dismissal disputes in which unfair discrimination is alleged must be dealt with in terms of the Labour Relations Act. The dismissal must be referred to the CCMA within 30 days. 3. Chapter 3 Affirmative Action 3.1 Duties of a Designated Employer: Section 13 a) A designated employer must implement affirmative action measures for designated groups to achieve employment equity. b) In order to implement affirmative action measures, a designated employer must: consult with employees; conduct an analysis; prepare an employment equity plan; and report to the Director-General on progress made in the implementation of the plan. 3.2 Affirmative Action measures: Section 15 a) Affirmative action measures are measures intended to ensure that suitably qualified Regenesys Business School 104

110 employees from designated groups have equal employment opportunity and are equitably represented in all occupational categories and levels of the workforce. b) Such measures must include: identification and elimination of barriers with an adverse impact on designated groups; measures which promote diversity; making reasonable accommodation for people from designated groups; retention, development and training of designated groups (including skills development); and preferential treatment and numerical goals to ensure equitable representation. This excludes quotas. c) Designated employers are not required to take any decision regarding an employment policy or practice that would establish an absolute barrier to prospective or continued employment or advancement of people not from designated groups. 3.3 Consultation: Sections 16 and 17 A designated employer must take reasonable steps to consult with representatives of employees representing the diverse interests of the workforce on the conducting of an analysis, preparation and implementation of a plan, and on reporting to the Director-General. 3.4 Disclosure of Information: Section 18 To ensure meaningful consultation, the employer must disclose relevant information to the consulting parties, subject to section 16 of the Labour Relations Act 66 of Analysis: Section 19 A designated employer must conduct an analysis of employment policies, practices, procedures, and working environment so as to identify employment barriers that adversely affect members of designated groups. The analysis must also include the development of a workforce profile to determine to what extent designated groups are under-represented in the workplace. 3.6 Employment Equity Plan: Section 20 a) A designated employer must prepare and implement a plan to achieve employment equity, which must: have objectives for each year of the plan; include affirmative action measures; have numerical goals for achieving equitable representation; have a timetable for each year; have internal monitoring and evaluation procedures, including internal dispute resolution mechanisms; and identify persons, including senior managers, to monitor and implement the plan. 3.7 Report: Section 21 a) An employer who employs fewer than 150 employees must submit its first report to the Director-General within 12 months after the commencement of the Act, and thereafter every Regenesys Business School 105

111 2 years on the first working day of October. b) An employer who employers 150 or more employees, must submit its first report 6 months after the commencement of the Act, and thereafter every year on the first working day of October. 3.8 Designated employer must assign a manager: Section 24 A designated employer must assign one or more senior managers to ensure implementation and monitoring of the employment equity plan and must make available necessary resources for this purpose. 3.9 Income Differentials : Section 27 A statement of remuneration and benefits received in each occupational category and level of the workforce must be submitted by a designated employer to the Employment Conditions Commission (ECC). Where there are disproportionate income differentials, a designated employer must take measures to reduce it progressively. Such measures may include collective bargaining, compliance with sectoral determinations (section 51 of the Basic Conditions of Employment Act); the application of norms and benchmarks recommended by the ECC, relevant measures contained in skills development legislation, and any other appropriate steps. 4. Chapter V Monitoring, Enforcement and Legal Proceedings 4.1 Monitoring: Section 34 Employee or trade union representatives can monitor contraventions of the Act and report to relevant bodies. 4.2 Powers of the Labour Inspector: Section 35 Labour Inspectors are authorised to conduct an inspection as provided for in sections 65 and 66 of the Basic Conditions of Employment Act. 4.3 Undertaking to Comply: Section 36 If the inspector has reasonable grounds to believe that a designated employer has failed to comply with its obligations in terms of the Act, the inspector will obtain a written undertaking to comply within a specified period. 4.4 Compliance Order: Section 37 If the designated employer refuses to comply with the written undertaking, the inspector will issue an order to comply. Regenesys Business School 106

112 4.5 Review by Director-General: Section 43 The Director-General may conduct a review to determine whether an employer is complying with the Act.. On completion of the review, the Director-General may make recommendations for compliance within certain time frames. 4.6 Powers of the Labour Court: Section 50 The Labour Court has the powers to make any appropriate orders, award compensation, or impose fines. 4.7 Protection of Employee Rights: Section 51 The Act protects employees who exercise their rights and obligations under the Act against victimisation, obstruction and undue influence. 5. Chapter VI General Provisions 5.1 State contracts: Section 53 Designated employers and employers who voluntarily comply with Chapter III, who seek to do business with any organ of state, will have to apply for a certificate from the Minister confirming their compliance with Chapters II and III of the Act. Non-designated employers' compliance certificates will pertain to Chapter II. 5.2 Liability of Employers: Section 60 Should employees contravene any provision of this Act, while performing their duties, the employer will be liable unless the employer can prove that it did everything in its power to prevent the undesired act. The Act can be accessed below: Employment Equity Act, 1998, Regenesys Business School 107