Professional Documents
Culture Documents
Human Resource Management
Human Resource Management
STUDY GUIDE
Copyright © 2007
MANAGEMENT COLLEGE OF SOUTHERN AFRICA
All rights reserved; no part of this book may be reproduced in any form or by any means,
including photocopying machines, without the written permission of the publisher
TABLE OF CONTENTS
Section Title of Section Page
Introduction 3 - 10
MANCOSA - 1
Human Resource
MANCOSA - 2
Human Resource
SECTION
INTRODUCTION
MANCOSA - 3
Human Resource
Develop the student’s understanding of the integration of human resource strategy and
business strategy.
Develop the student’s understanding of the HRM practices of recruitment and selection.
Develop the student’s understanding of the HRM practices of compensation and the
provision of employee benefits and services.
Develop the student’s understanding of employment relations within the Southern African
context.
MANCOSA - 4
Human Resource
Introduction
This module, Human Resource Management, forms an integral part of the MANCOSA Master of
Business Administration (MBA) qualification and serves to introduce the student to the
fundamentals of the field of human resource management. In so doing, the module explores the
integration of human resource strategy and business strategy, as well as human resource
planning, recruitment and selection, employee training and development, performance
management, compensation, employee benefits and services, employment relations and career
management.
This first section introduces the student to the field of human resource management (HRM). In
this section a definition of HRM is formulated, the aims of HRM are explored and the place of
HRM within the enterprise is examined. HRM functions and the role of the HR manager are also
given attention. This section also explores the nature of strategic human resource management,
human resource career opportunities as well as current HRM issues and challenges.
Section 2 explores the integration of human resource strategy and business strategy. Here the
importance of the relationship between HR strategy and business strategy is examined. The
manner in which HR strategy may be integrated into the process of business strategy
formulation, implementation and evaluation is explored. This section also studies the
competencies required by the HR manager to successfully participate and contribute to the
strategic management process.
This third section examines human resource planning. In so doing, the nature of HR planning,
the process of HR planning and current issues impacting on HR planning are explored.
MANCOSA - 5
Human Resource
Section 4 explores the HR practices of recruitment, selection and induction. In this section the
nature of recruitment, recruitment policies, factors influencing recruitment and recruitment
sources are studied. The factors affecting selection decisions and the selection process are also
explored. The objectives and benefits of an induction programme are studied. The planning,
design, implementation and evaluation of an induction programme is also explored.
This section examines employee training and development. A distinction is made between the
concepts training and development. The training process is examined, and the impact of the
South African context on training within South African organisations is explored. The various
approaches to development are also examined.
Section 7: Compensation
This section focuses on the HRM practice of compensation. The nature of compensation and
factors influencing the determination of compensation are investigated. This section also
explores compensation levels, the development of a compensation structure and challenges to
compensation systems. Incentive compensation systems are also investigated.
Section 8 focuses on employee benefits and services. In so doing, the nature of employee
benefits and services is explored and the reasons for growth in employee benefits and services
are investigated. This section also examines the different types of benefits and services. The
administration of benefits and services is also studied.
MANCOSA - 6
Human Resource
This section explores the area of career management. In so doing, the nature of the career in the
twenty-first century is explored and the importance of career management is established. The
various career stages, career planning and career development are also explored.
MANCOSA - 7
Human Resource
This module should be studied using this unit and the recommended textbook(s). You should
read about the topic that you intend to study in the appropriate chapter before you start
reading in detail in the recommended textbook(s). Ensure that you make your own
notes/summaries as you work through both the textbook(s) and this module.
At the commencement of each chapter you will find a list of objectives. These objectives
outline the main points that you should understand when you have completed the chapter
with its accompanying section(s).
Avoid reading all the material at once. Each study session should be no longer than two hours
without a break.
In the course module chapter, you will find the following symbols and instructions. These are
designed to help you study.
You may come across self-assessment questions which will test your understanding of
what you have learnt so far. Answers to these questions are given at the end of each
chapter. You should refer to the textbook(s) when attempting to answer the question.
ACTIVITY
You may come across activities which ask you to carry out specific tasks.
In most cases there are no right or wrong answers to these activities. The aim of these activities is to
MANCOSA - 8
Human Resource
READING
? THINK POINT
READING
A think point asks you to stop and think about an issue. Sometimes you are asked to
apply a concept
The core to your
texts for own experience
this module are: or to think of an example.
Nel, P.S., Van Dyk, P.S., Haasbroek, G.D., Schultz, H.B, Sono, T. and Werner,
A. (2004) Human Resource Management 6th Ed. Cape Town: Oxford.
MANCOSA - 9
Human Resource
Module Assessment
Assignment
You will be required to complete and submit an assignment. This assignment is assessed as
part of your coursework. Therefore, it is very important that you complete it.
Examination
An examination will be written at the end of the semester. The assessment strategy will focus
on application of theory to practice.
MANCOSA - 1
Human Resource
SECTION 1
INTRODUCTION TO
HUMAN RESOURCE MANAGEMENT
MANCOSA - 1
Human Resource
CONTENTS
Learning Outcomes
Reading
1.1 Introduction
1.5 Human Resource Management Functions and The Role of the HR Manager
Summary
MANCOSA - 1
Human Resource
LEARNING OUTCOMES
The overall outcome for this section is that, on its completion, the student should be able to
demonstrate a basic understanding of the field of human resource management (HRM). This
overall outcome will be achieved through the student’s mastery of the following specific
outcomes, in that the student will be able to:
3. Identify and discuss the place of human resource management within the enterprise.
5. Identify and critically discuss the role of the human resource manager.
8. Identify and critically discuss current issues and challenges in the field of human
resource management.
MANCOSA - 1
Human Resource
READING
Prescribed Reading:
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M. (2006) Human
Resource Management: Gaining a Competitive Advantage 5th Ed. Boston:
Irwin McGraw-Hill. pp 2 -51
Nel, P.S., Van Dyk, P.S., Haasbroek, G.D., Schultz, H.B, Sono, T. and
Werner, A. (2004) Human Resource Management 6th Ed. Cape Town:
Oxford. pp 3-31
Recommended Reading:
Books
Brewster, C., Dowling, T., Grobler, P., Holland, P. & Warnich, S. (2000)
Contemporary Issues in Human Resource Management. Cape Town: Oxford
University Press Southern Africa.
Carrell, M.R., Elbert, N.F., Hatfield, R.D., Grobler, P.A., Marx, M. & Van der
Schyf, S. (1997) Human Resource Management in South Africa. New Jersey:
Prentice-Hall Inc. pp 1 – 44.
Ivancevich, J.M. (1998) Human Resource Management. 7th Ed. Boston: Irwin
McGraw-Hill. pp 2 – 35.
MANCOSA - 1
Human Resource
Journals
Delantey, J.T. & Huselid, M.A. (1996) ‘The Impact of Human Resource
Management Practices on Perceptions of Organizational Performance’.
Academy of Management Journal. August, 39(4), pp 949 – 970.
MANCOSA - 1
Human Resource
1.1 Introduction
This section, the first section of the Human Resource Management module, serves to
introduce the student to the concept of human resource management (HRM). In so doing the
following issues are examined:
ACTIVITY
Comment on Activity
Various definitions of human resource management exist. Noe, Hollenbeck, Gerhart &
Wright (2006:5) assert that:
“Human resource management (HRM) refers to the policies, practices and systems
that influence employees’ behaviour, attitudes and performance. Many companies
refer to HRM as involving ‘people practices’”.
MANCOSA - 1
Human Resource
Nel & Van Dyk (2004) distinguish between personnel management and human resource
management, and argue that the latter is more appropriate for today’s organisation in that it
provides for a holistic and strategic approach to the management of people. Nel et al
(2004:6) identify the following definition of HRM as being most appropriate:
This definition is more holistic than that provided by Noe et al (2006:5) and Ivancevich
(1998:5) in that it addresses the inter-relation of four dynamic components. These
components, and their inter-relation, are diagrammatically represented in Figure 1.1.
ENVIRONMENT
Economic
Social
Political
Technological
THE ORGANISATION
Size
Culture
Structure
Human Resources Policy
Technology
MANCOSA - 1
Human Resource
Nel et al (2004) identifies three generally accepted aims of human resource management.
These are:
To establish a culture within an organisation that recognizes the uniqueness of the
individuals who make a meaningful contribution to the organisation’s success;
To establish how employees and the organisation can inter-relate to the advantage of both
parties;
To support managers in the execution of their tasks related to the management of people.
ACTIVITY
Based on your experience of the human resource management function within the organisation, prov
the enterprise.
Comment on Activity
Human resource management may be depicted to occupy a place functionally within the
organisation’s structure, as depicted in Figure 1.2. This diagram depicts the line authority
vested in the HR Manager, where he/she holds a position of authority which provides for the
issuing of instructions to his/her subordinates.
MANCOSA - 1
Human Resource
GENERAL MANAGER
Figure 1.2: The Place of the Human Resource Management Function in an organisation
(adapted from Nel et al, 2004:11).
Human resource management may also be depicted as occupying the heart of the organisation
(see Figure 1.3), where functional authority and staff authority are exercised. Functional
authority gives the HR manager the right to issue enforceable HRM-related instructions to
individuals and departments throughout the organisation. On the other hand, staff authority
enables the HR manager to issue advice (which is not enforceable) to various entities within
the organisation.
THE ORGANISATION
TOP
R&D LOWER
MANAGEMENT
DEPARTMENT MANAGEMENT
MARKETING
TASK TEAMS
DEPARTMENT
HUMAN STAFF AUTHORITY
FUNCTIONAL AUTHORITY
RESOURCE
MANAGEMENT
OPERATIONS
MIDDLE FINANCE
DEPARTMENT
MANAGEMENT DEPARTMENT
EMPLOYEES
MANCOSA - 1
Human Resource
1.4 Human Resource Management Functions and The Role of the HR Manager
Responsibilities of HR Departments
In order to effectively carry out these functions within the organisation, the HR Manager and
his/her department need to fulfil the following roles:
A Service Role which incorporates the everyday functions of the HR department, which
includes activities relating to recruitment, selection, training and compensation;
A Control Role which is more strategic in nature and could involve, for example, an
analysis of key HRM outputs such as labour turnover;
An Advisory Role which involves the provision of expert HRM related advice to various
parties within the organisation (Nel et al, 2004:10).
MANCOSA - 2
Human Resource
READING
Read the following journal article and then answer the questions which follow:
Eisenstat, R.A. (1996) ‘What Corporate Human Resources Brings to the
Picnic: Four Models for Functional Management’. Organizational
Dynamics. Autumn, 25(2), pp 7 – 23.
Eisenstat (1996:7-23) identifies four roles which the HRM department within an organisation
may adopt to fulfil its function. These roles emerge from four models:
MANCOSA - 2
Human Resource
Eisenstat (1996:7-23) points out that the various models addressed above adopt particular
roles which serve to address the demands of a particular constituency:
The hierarchical model places the HRM function in the role of agent/advisor where the
needs of top management are addressed;
The professional model places the HRM function in the role of representative which
provides for consultation and communication with external parties; and
The service business model places the HRM function in the role of service provider to
individual operating divisions.
Eisenstat (1996:7-23) emphasises the need for organisations of today to follow a fourth
model, the partnership model, which serves to integrate and supplement the roles particular
to the hierarchical, professional and service business models. The partnership model involves
the HRM function in a strategic role where creation of value for the corporation as a whole
provides the focus, and higher levels of teamwork between the HRM function, top
management, individual operating divisions and external groups (e.g. unions) are achieved.
In such a model therefore, the HRM function not only adopts the roles of agent/advisor,
representative and service provider, but of strategic catalyst as well.
The journal article by Eisenstat (1996:7-23) discussed in section 1.5 above emphasised the
importance of the HRM function assuming an active role in the strategic management of the
company. Indeed, Noe et al (2003:6) points out that the “HR function is in transition from an
administrative function to a strategic business partnership”. This is evident in Table 1.1
below which shows how the percentage of time the HR department devotes to administrative
duties (such as maintaining records, auditing and controlling, and providing services) has
decreased over the last couple of years.
MANCOSA - 2
Human Resource
Strategic HRM will be addressed in greater depth in Section 2 of this module guide.
?
A HR professional may enter into the HRM field through various types of positions. Various
THINK POINT
generalist and specialist HR positions exist throughout all levels of the organisation.
What types of human resource career opportunities exist within your organisation?
These include positions in:
Labour relations
Employee relations
Recruitment and selection
Organisational development
Training
Compensation and benefits
Given the dynamic and competitive nature of the current business environment, HRM is
currently faced with a number of challenges.
Noe et al (2006:13) identify three categories of competitive challenges for human resource
management. These are:
Competing through Globalisation which involves the expansion of organisations into
global markets and the challenge of preparing employees for work in foreign countries;
Competing through Sustainability which involves providing a return to shareholders, the
development of employees and the creation of a positive work environment; and
Competing through Technology which requires changes in employee and manager work
roles, and the integration of technology and organisational social systems.
MANCOSA - 2
Human Resource
READING
Read the following journal article and answer the questions which follow.
Ulrich, D. (1998) ‘A New Mandate for Human Resources’. Harvard
Business Review. Jan – Feb, pp 124 – 134.
2. How does Ulrich recommend that HRM deal with these challenges?
Ulrich (1998:124-134) identifies five challenges which are to impact on HRM within
companies. These challenges are:
Globalisation which requires that “organizations increase their ability to learn and
collaborate and to manage diversity, complexity and ambiguity” (Ulrich, 1998: 126).
Profitability Through Growth where organisations will need to grow revenue through
becoming more market focused, acquiring new customers and developing new,
innovative products.
Technology where managers will need to figure out how to make good use of
technology and effectively integrate it into the work setting and work processes.
Intellectual Capital provides direct and indirect competitive advantage and the
challenge for organisations in “making sure they have the capability to find,
assimilate, develop and compensate, and retain such talented individuals” (Ulrich,
1998: 127).
Change, Change and More Change presents the greatest competitive challenge in
that it requires that organisations learn rapidly and continuously, constantly innovate,
and readily adapt and change strategy.
MANCOSA - 2
Human Resource
Ulrich (1998:124-134) argues that HRM will be critical in addressing the challenges
identified above, in that these challenges require that organisations build new capabilities
(such as speed, learning capacity, agility, responsiveness). HRM will need to play a
leadership role in developing these new capabilities and therefore HRM’s ‘new’ mandate
would be:
To become a partner in strategy execution which would involve the HRM function in:
Becoming a Change Agent which would involve building the organisation’s capacity to
adapt to, cope with and embrace change.
HRM professionals will need to focus on the creation of value for the enterprise, and create
mechanisms which provide for rapid business results (Ulrich, 1998:124-134).
Summary
This section served to provide the student with an introduction to the study of Human
Resource Management (HRM). In so doing, a definition of human resource management was
investigated and the aims of HRM were established. The place of HRM, the functions of the
HR department, the role of the HR manager, and HR career opportunities were also
investigated. In closing, current issues and challenges for the function of HRM were studied.
MANCOSA - 2
Human Resource
NOTES :
MANCOSA - 2
Human Resource
SECTION 2
MANCOSA - 2
Human Resource
CONTENTS
Learning Outcomes
Reading
2.1 Introduction
2.5 Summary
MANCOSA - 2
Human Resource
LEARNING OUTCOMES
The overall outcome for this section is that, on its completion, the student should be able to
demonstrate a holistic understanding of the integration of human resource strategy and
business strategy. This overall outcome will be achieved through the student’s mastery of the
following specific outcomes:
4. Critically discuss the function and role of human resource management within the
strategic management process.
5. Discuss the various human resource practices associated with the various generic and
directional strategies.
MANCOSA - 2
Human Resource
READING
Prescribed Reading:
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M. (2006) Human
Resource Management: Gaining a Competitive Advantage 5th Ed. Boston:
Irwin McGraw-Hill. pp 664-703
Nel, P.S., Van Dyk, P.S., Haasbroek, G.D., Schultz, H.B, Sono, T. and
Werner, A. (2004) Human Resource Management 6th Ed. Cape Town:
Oxford. Pp 519-535
Recommended Reading:
Books
Brewster, C., Dowling, P., Grobler, P., Holland, P. & Warnich, S. (2000)
Contemporary Issues in Human Resource Management. Cape Town: Oxford
University Press Southern Africa.
Ivancevich, J.M. (1998) Human Resource Management 7th Ed. Boston: Irwin
McGraw-Hill. pp 36 – 69.
MANCOSA - 3
Human Resource
Journals
MANCOSA - 3
Human Resource
2.1 Introduction
While section 1 introduced the student to the field of Human Resource Management (HRM),
this section examines the relation between Human Resource Strategy and Business Strategy.
In so doing the following will be studied:
The importance of the relationship between HR and business strategy
Linking HR strategy and business strategy
o Strategy formulation
o Strategy implementation
o Strategy evaluation and control
Strategic human resource management competencies
ACTIVITY
MANCOSA - 3
Human Resource
Comment on Activity
Question 1
There is no evidence in the case to suggest that Allen considered the input of the HR
department when formulating the company’s strategy. However, there is evidence in the case
that Delta’s human resources were a highly committed, customer-focused and competent
workforce. Thus, the workforce could be regarded as the resource which could have
provided for Delta’s competitive advantage. It is probable that this would have been brought
to Allen’s attention if the company’s HR department had been involved in the formulation of
strategy. Indeed, the HR department could have pointed out to Allen that:
Alternatively, a strategy which reduced costs without sacrificing the workforce could
have been considered. The workforce could have been drawn into the process and asked
to come up with ways to perform certain tasks more efficiently.
Question 2
While there is no evidence to suggest that Allen consulted with the HRM function in
formulating Delta’s strategy, the HRM function would have been involved in the
implementation of Allen’s downsizing strategy. From the evidence provided in the case it is
suggested that the HR department would have primarily been involved in administering
workforce reduction programmes such as early retirements and retrenchments.
However, no evidence is provided in the case of the HR Department adopting a more holistic
role in implementing the strategy, such as the provision of outplacement services,
interventions to boost the morale of survivor employees, effective communication with the
employees regarding the downsizing initiative, etc.
MANCOSA - 3
Human Resource
It may be concluded that had Allen actively integrated HRM into Delta’s business strategy,
the decisions emerging from the strategy formulation and strategy implementation processes
would have been more holistic, and probably more effective.
Strategic management may be defined as managing the “pattern or plan that integrates an
organization’s major goals, policies, and action sequences into a cohesive whole” (Quinn
cited in Noe et al, 2006:58). On the other hand, strategic human resource management
(SHRM) may be defined as “the pattern of planned human resource deployments and
activities intended to enable an organization to achieve its goals” (Friedman & Strickler
cited in Noe et al, 2006:59). Thus HRM is critical in supporting the formulation and
implementation of strategy.
MANCOSA - 3
Human Resource
Golden and Ramanujam (1985:429-451) identify four levels of integration between the HRM
function and the strategic management function which may emerge within organisations.
These are:
Administrative Linkage which is the lowest level of integration and the HR function is
primarily focused on day-to-day activities. The HR function is divorced from the strategic
management process.
One-Way Linkage which involves the strategic management function in simply
informing the HR function of the strategic plan. (This does not constitute strategic HRM).
Two-Way Linkage which allows for sequential consideration of HR issues during the
strategy formulation process in that the HR function is informed of the various strategies
which are being considered and the HR executive provides input as to the HR
implications. Once the strategic plan has been determined, the HR function prepares
various programmes to support the implementation of the strategy.
Integrative Linkage is dynamic and is based on continuing interaction between the
strategic management and HRM function. The HR function forms part of the strategic
management team, and actively participates in the formulation and implementation of
strategy.
MANCOSA - 3
Human Resource
The formulation of strategy involves the consideration and establishment of five major
components, which are depicted in Figure 2.1. These components include the:
Organisation’s Mission which specifies the organisation’s reason for existence.
Organisation’s Strategic Goals which specify what the organisation aims to achieve in
the medium and long term.
External Analysis which provides information as to the threats and opportunities which
exist for the company within the external environment.
Internal Analysis which provides information as to the strengths and weaknesses of the
company’s resources.
Strategic Choice which is the organisation’s chosen strategy and specifies the way in
which the mission and strategic goals are to be achieved.
EXTERNAL ANALYSIS
Oppurtunities Threats
INTERNAL ANALYSIS
Strengths Weaknesses
HR INPUT
MANCOSA - 3
Human Resource
It is important to note that in the consideration of the five components discussed above, it is
critical that input from the HRM function is considered and that people-related issues are
contemplated (Noe et al, 2006:60-61). For example, if an IT organisation were to conduct an
external analysis at this point in time, a major external threat would be the considerable lack
of skilled IT professionals within the labour market.
Once an organisation has completed the strategy formulation phase, the implementation of
strategy needs to take place. Noe et al (2006:68) argue that five variables influence the
success of strategy implementation:
Organisational structure
Types of information and information systems
Task design
Selection, training and development of people
Reward systems
The involvement of the HRM function in strategy implementation is depicted in the Figure
2.2 on the following page.
MANCOSA - 3
Human Resource
HUMAN RESOURCEHUMAN
CAPABILITY
RESOURCE ACTIONS
Skills Abilities Knowledge Behaviours Results (Productivity, Absenteeism, Turnover)
As shown in Figure 2.2 the choice of strategies (made during the strategy implementation
phase) determine the organisation’s HR needs. These HR needs give rise to specific HR
practices (such as job analysis and design, recruitment and selection, etc.) which in turn
provide the organisation with HR capability and behaviours. This HR capability and
behaviours enable the organisation to perform in accordance with the organisation’s chosen
strategies.
The type(s) of strategies employed will impact on the nature of the HR practices
implemented by the HRM function within an organisation.
MANCOSA - 3
Human Resource
Identify the impact which each of the following strategies will have on the
organisation’s HR Practices.
1. Generic Strategies:
* Overall Cost Leadership
* Differentiation
2. Directional Strategies
* Concentration
* Internal Growth
* Downsizing
The answer to this Self-Check Question may be found at the end of this section
MANCOSA - 3
Human Resource
Strategy evaluation and control is the final phase in the strategic management process and
requires both the strategic management function as well as the HRM function in constantly
monitoring the effectiveness of the strategy and implementation process (Noe et al, 2003).
2.3.4 Consolidation
The following reading activity serves to consolidate the student’s understanding of the
integration of HR strategy and the strategic management process.
READING ACTIVITY
Read the following article and then answer the question that follows:
MANCOSA - 4
Human Resource
Nellis & Schuler (1994:59-73) outline how AT&T managed to effectively integrate its HRM
function into its business strategy.
During 1992, in order to save AT&T from further decline, AT&T Business Communications
Systems (BCS) merged with AT&T General Business Units to form GBCS. GBCS then
embarked on a strategic management process which focused strongly on integrating GBCS’s
HRM function into its business strategy.
Strategy Formulation
Six strategic principles were identified to guide the formulation of strategy. These principles
were:
Make people a key priority
Life-long customer relationships
Total quality management
Technology applications leadership
Globalisation
Being the best value supplier
GBCS’s vision, mission and values were then reconstructed, based on the six principles
identified above (Nellis & Schuler, 1994:59-73). The integration of HR into GBCS’s
strategy formulation process is made evident in the first of the six principles: “Make people
a key priority”.
HRM was further integrated with the overall business strategy, in that the CEO tasked the
HR executive and his team to develop an HR strategic plan and management system which
would provide for the linking of the GBCS’s employees to the overall company business
strategy. The HR strategic plan which was prepared was linked to the six strategic principles
on which the overall business strategy was based. The application of these principles
enabled the HR team to identify three HR areas which would be critical in linking the GBCS
employees to the overall business strategy.
MANCOSA - 4
Human Resource
Strategy Implementation
The HR initiatives which were implemented served to link the GBCS employees to the
overall business strategy. These initiatives included:
A redesign of the performance management process;
A redesign of the compensation system to reinforce the link between employees’
achievements and business success;
The implementation of a recognition platform to motivate, build self-esteem and
commend role-model behaviour;
Various communication programmes to provide support to the compensation,
recognition and performance practices.
In implementing these initiatives, it came to the attention of management that the HRM
function would need to be repositioned and reorganized. This included:
Nellis & Schuler (1994:59-73) report that GBCS’s initiative to integrate HRM into overall
business strategy has proved to be successful and that business results have significantly
improved.
? THINK POINT
__________________________________________________________________
MANCOSA - 4
Human Resource
Noe et al (2006) identifies four basic competences which the HR professional requires in
order to participate in an organisation’s strategic management process. These competences
are highlighted in Figure 2.3 below.
Figure 2.3: Strategic Human Resource Competencies (adapted from Noe et al, 2006:82).
1.4 Summary
This section has served to provide an overview of HR Strategy and Business Strategy. In so
doing the importance of integrating a company’s HRM into its business strategy was
established. The strategic management process was examined and the implications for HRM
at each stage in this process were explored. In closing, the competencies required by the HR
professional to successfully participate in an organisation’s strategic management process,
were examined.
MANCOSA - 43
Human Resource
Self-Check Question 1
The impact which the various strategies will have on the organisation’s HR practices are
summarised in the tables below:
1. Generic Strategies
Generic Impact on HR Practices
Strategies
Overall Cost Focus on efficiency requires specific definition of skills
Leadership requirements and investment in training in these areas.
Behavioural performance management with large
performance-based compensation component.
Promote internally.
Develop internally consistent pay systems with high
differential between subordinates and superiors
Seek efficiency through worker participation
Differentiation Broad job descriptions to allow for creativity.
May recruit from outside and provide for limited
socialization of new recruits.
Provide broad career paths.
Cooperation is the focus on training and development
activities.
Compensation influenced by external equity and
recruiting needs.
Results-based performance management systems.
MANCOSA - 44
Human Resource
3. Directional Strategies
MANCOSA - 45
Human Resource
NOTES :
MANCOSA - 46
Human Resource
SECTION 3
MANCOSA - 47
Human Resource
CONTENTS
Learning Outcomes
Readings
3.1 Introduction
3.5 Summary
MANCOSA - 48
Human Resource
LEARNING OUTCOMES
The overall outcome for this section is that, on its completion, the student should be able to
demonstrate a holistic understanding of the Human Resource Planning and its application.
This overall outcome will be achieved through the student’s mastery of the following specific
outcomes:
3. Identify, critically discuss and apply the process of human resource planning.
4. Integrate employment equity and skills development issues with human resource
planning.
MANCOSA - 49
Human Resource
READING
Prescribed Reading:
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M. (2006) Human
Resource Management: Gaining a Competitive Advantage 5th Ed. Boston:
Irwin McGraw-Hill. pp 174-213
Nel, P.S., Van Dyk, P.S., Haasbroek, G.D., Schultz, H.B, Sono, T. and
Werner, A. (2004) Human Resource Management 6th Ed. Cape Town:
Oxford. pp 212-227
Recommended Reading:
Books
Carrell, M.R., Elbert, N.F., Hatfield, R.D., Grobler, P.A., Marx, M. & Van der
Schyf, S. (1997) Human Resource Management. New Jersey: Prentice Hall
Inc. pp 137 – 148.
Ivancevich, J.M. (1998) Human Resource Management 7th Ed. Boston: Irwin
McGraw-Hill. pp 145 – 163.
MANCOSA - 50
Human Resource
MANCOSA - 51
Human Resource
3.1 Introduction
This section investigates the concept of Human Resource (HR) Planning and in so doing will
examine:
The nature of HR planning
The process of HR planning
o Forecasting
o Goal setting and strategic planning
o Programme implementation and evaluation
Current issues impacting on HR planning
o Employment equity and skills development
o Strategic management and HR planning
Organisations engage in the process of human resource planning to determine the future
supply of, and demand for, human resources so as to gain or maintain competitive advantage.
A definition provided by Huselid (1993:36) asserts that “[Human resource planning] is…the
process of matching a firm’s long-term demand for labour with its supply”, while Ivancevich
(1998:145) maintains that “HR planning determines the numbers and types of employees to
be recruited into the organization or phased out of it”.
? THINK POINT
Does your organisation conduct human resource planning? Why / Why not?
MANCOSA - 52
Human Resource
Both Huselid (1993:36) and Grobler (1993:16) assert that a substantial number of
organisations do not engage in human resource planning.
During 1990 a study of the HR practices of 400 manufacturing companies was conducted.
The study found that “….the implementation of …[human resource planning] in companies
in the manufacturing industry in the PWV area has only been adopted to a limited extent.”
(Grobler, 1993:16). The reasons which Grobler (1993:16) provides for the limited HR
planning include:
The assumption amongst companies that an adequate supply of labour will be available
when needed;
The assumption that human resources (employees) are a highly flexible resource that can
be laid off, trained and recruited at short notice;
The responsibility for company planning typically resting with financial and marketing
executives (Grobler, 1993:16).
In a study conducted by Huselid (1993) the impact of workforce volatility (which refers to
the instability in the firm’s level of employment from year to year) on HR planning (HRP)
was investigated. It was found that “…firms exhibiting moderate levels of workforce
volatility were much more likely to adopt HRP….than were firms in highly stable and
dynamic environments. Thus it is likely that high levels of workforce volatility render HRP
ineffective, while low levels of workforce volatility make it unnecessary” (Huselid, 1993: 47).
Thus, it can be seen from the above discussion that companies refrain from conducting HR
Planning due to both external and internal environmental factors.
MANCOSA - 53
Human Resource
Human resource planning generally follows the process depicted in Figure 3.l:
Figure 3.1: The Human Resources Planning Process (from Noe et al, 2006: 178)
The figures established from the labour demand and labour supply forecasts will be used to
determine potential labour shortages or labour surpluses for particular job categories (Noe et
al, 2006:179).
MANCOSA - 54
Human Resource
3.
MANCOSA - 55
Human Resource
Issues currently impacting on HR planning are that of Employment Equity and Skills
Development within the South African context, as well as the integration of HR planning
with strategic management.
Comment on Activity
ACTIVITY
The Employment Equity Act requires South African organisations to develop Employment
Consider the implementation of the Employment Equity Act and Skills
Equity Plans, ranging between one and five years. The Employment Equity Plans serve to
Development Act within your organisation. How have the activities associated
provide a mechanism to introduce individuals from previously disadvantaged groups into
with the implementation of these two pieces of legislation affected your
organisations (Department of Labour, 2000), and in so doing impact on the HR planning of
organisation’s approach to HR Planning?
the company.
The Skills Development Act of 1998 also impacts on the HR planning of the South African
organisation in that it provides incentives for organisations to develop Workplace Skills
Plans to address both skills shortages particular to the workplace as well as to the sector in
which the organisation operates (RSA, 1998b).
MANCOSA - 56
Human Resource
READING ACTIVITY
1. Comment on how Schuler & Walker’s (1990) approach has brought about
an adjusted / expanded understanding of the concept of HR planning.
MANCOSA - 57
Human Resource
Ulrich (1992:47-63)
While Schuler & Walker (1990) focus on HR planning’s focus on issues of a short term and
immediate nature, Ulrich (1992) emphasises the expansion of the traditional HR planning
function. Indeed, as a result of its integration with business strategy, HR planning expands to
include a customer-employee linkage where “…customers and employees come to agreement
about organizational ends {strategies, goals, missions and visions}and the means to be used
to reach the ends {structure, staffing, rewards, etc}….a unity exists when customers and
employees are jointly aware of , accept, and act on a shared mindset about the firm” (Ulrich,
1992: 49).
3.5 Summary
This section has served to investigate the concept of Human Resource Planning. In so doing
the nature and importance of HR planning was examined and the HR planning process was
studied. Current issues impacting on HR planning, such as Employment Equity and Skills
Development (within the South African context) and the integration of HR Planning into
business strategy, were also addressed.
Read the case study entitled ‘Forget the Huddled Masses: Send the Nerds’ below
and then answer the following questions:
MANCOSA - 58
Human Resource
Other recruiters should be so lucky. High-tech headhunters for Andersen Consulting tramp through
technical schools in Budapest and job fairs in Manila. At a recent training session for programmers in
Holland, Microsoft Corp. hired bouncers to keep headhunters at bay. And a recruiter for IBM's Global
Services Div., who is trying to hire 15,000 software hands this year alone, introduces himself as
James R. Bunch, ''as in bunch of jobs.''
The Information Revolution is racing ahead of its vital raw material: brainpower. As demand explodes
for computerized applications for everything from electronic commerce on the Internet to sorting out
the Year 2000 glitch, companies are finding themselves strapped for programmers. In the U.S., alone,
which accounts for two-thirds of the world's $300 billion market in software products and services,
some 190,000 high-tech jobs stand open, most of them for programmers, according to the Information
Technology Assn.
SOARING SALARIES. That's sending companies scouring the globe for talent--and lifting salaries
skyward. A typical programmer's wages, now some $70,000, is jumping 13% a year, and far higher in
the hottest niches, such as Java Internet software and SAP business applications. These days, $20,000
signing bonuses are commonplace and stock options are being handed out with as little fanfare as
office supplies. If the pace keeps up, experts say, ballooning salaries could wind up damaging the
global tech machine as margins are squeezed and investments postponed.
And relief is nowhere in sight. Experts predict the gap between computer-science students and
expected demand won't ease for a decade, if then. Too many bright young people, especially in
Europe and the U.S., consider programming geek work and choose other careers. In the U.S., the
number of computer-science graduates has plummeted in the past decade or so, from 48,000 graduates
in 1984 to an estimated 26,000 this year. ''This is a real limiting factor to growth,'' says Avron Barr, a
researcher at Stanford Computer Industry Project who is investigating the shortage.
Indeed, for high-tech companies, the dearth of programmers is the greatest threat to expansion in the
coming year--far more menacing, they say, than an economic slump or competition in the
marketplace. And it's not just a problem for tech companies. Plenty of others are desperate for the
same talent. Auto makers from Tokyo to Detroit are packing more computing power into their cars
and plants. Banks, brokerages, and phone companies are rushing to outdo each other with the zippiest
online services, all requiring herds of nerds. Those that choose not to install the newest technology,
says Owens Corning CIO Michael Radcliff, are ''creating a competitive liability.''
Of course, if you're willing to pay--or have the stock options to entice--you could be up to your
propeller hats in programmers. In Silicon Valley, star programmers are swimming in stock options,
driving Porsches, and buying homes in the pricey Los Altos hills. At Netscape Communications
Corp., which plans to hire more than 1,000 programmers this year, employees receive up to $5,000
just for a successful referral and the pampered programmers are treated to onsite massages, teeth-
cleanings, and laundry service. The company lines up their 49ers tickets and books their white-water
rafting vacations. All this to keep them from succumbing to a stream of calls from headhunters.
MANCOSA - 59
Human Resource
''Everybody's going crazy now trying to find these folks,'' says Margie Mader, Netscape's human-
resources director.
How did the shortage get so bad? For years, tech companies had little reason to fret. In the early '90s,
the industry snapped up hundreds of thousands of workers who were dropped into the job market
when large corporations downsized--a source now running dry.
TEDIOUS WORK. At the same time, the very act of writing software has not speeded up despite the
computer revolution and the terabytes of information hurtling around the globe. Today, even the best
of programmers painstakingly turns out some 10 lines of code a day. To whip up today's software
programs--even a cellular telephone requires some 300,000 lines of code--takes armies of
programmers laboriously writing away. Consider this: There are six million software programmers
and counting in the world today, two million of them in the U.S. and one million in Japan. As an
industrial model, it's akin to pre-Gutenberg monasteries with their legions of scribbling monks.
For years, global savants pooh-poohed the pending programmer crunch by pointing to India, which
boasted a seemingly bottomless reserve of techies. India, they said, would be to software what Saudi
Arabia was to oil. And true, with 50,000 programmers pouring out of schools every year--twice the
American total--India is a valuable labor pool.
But with global technology bursting to $3 trillion this decade--four times higher than in the '80s--
India's supply simply isn't enough. And no other plentiful source of software skills appears to be on
the horizon. Russia has promise, but it's limited: Few of its programmers speak English or understand
business applications. China is a possibility, but it's likely to employ most of its programmers over the
next decade for its own massive development projects. ''I had this one programmer from China,''
laments one official at Electronic Data Systems Corp. ''I took him through the whole immigration
process, got his papers. Then he got a better offer.''
RAID BAIT. Naturally, in this world of predators, there's a pecking order. Sitting on top are the fast-
growth companies with hot Internet technologies. They're magnets for talented programmers, and they
can pad their offers with rich stock options. Service companies such as Andersen Consulting, IBM
Global Services, and Ernst & Young, which are helping companies install systems worldwide, are
forced to routinely dole out six-figure salaries to programmers with experience in business
applications. They compete with countless body shops--outsourcing companies that pay as much as
$300,000 for skilled programmers willing to live on the road.
At the bottom of the pile are the corporate tech departments throughout the world. Many are short on
money and stock options. And if they install a popular system, bringing their staff up to date on
something new from, say, Oracle Corp. or the German software giant SAP, their departments get
raided in no time. Don Yates became familiar with SAP's leading software package for business while
helping install the system in the early '90s at Royal LePage Ltd., a real estate company in Toronto.
Within a year, the 18-person department was picked clean. ''I was the last one to go,'' says Yates, who
now makes three times as much money, some $150,000, as an itinerant programmer for EMI, a
Pittsburgh-based company that rents out software talent.
No surprise, then, that companies are trying any tactic, including turning to the World Wide Web.
Since the Net is where most programmers spend idle hours, growing numbers of recruiters are using it
to chase them down. That's where Michael L. McNeal casts his global net. McNeal, human-resources
chief at Cisco Systems Inc., needs to hire 1,000 people each quarter, many of them programmers. Like
other recruiters, he buys ads on popular Web sites like the Dilbert page, which funnels traffic to
Cisco's Web site. There, the company lists some 500 current job openings. Applicants in foreign
countries can hit hot buttons to translate the page into Cantonese, Mandarin, Russian. And, by filling
out a short questionnaire, they can create a resume and zap it to Cisco.
MANCOSA - 60
Human Resource
Cisco's Web page draws 500,000 job searches per month. This gives Cisco gobs of data about the job
market, including which companies have interested employees. Armed with the best prospects,
McNeal then turns to Cisco employees for help, asking them to call recruits, who speak the same
language.
Like the others, Microsoft recruits on the Web and snaps up startups for talent--some 20 companies in
1996, alone. But to get its software up and running throughout the world, Microsoft relies on service
companies, which are grossly understaffed. Microsoft calculates that its service partners are short
41,000 professionals trained to install Microsoft products. This is forcing the company to educate new
recruits. With an effort known as Skills 2000, Microsoft is pushing into 350 schools and colleges
around the world. It hammers out curricula that will produce more programmers, such as adding
computer training in business schools.
A big part of the effort is in Europe, a major market that has 18 million unemployed workers.
Microsoft's solution is to invite jobless Europeans in 11 countries into free training programs. In the
past year, 3,000 Europeans have gone through the program, with 98% of them landing jobs.
It's in this $170 billion market for global software services, including the Big Six consulting firms,
IBM Global Servics, Manpower, and many others, that demand for programmers is especially hot.
This is because corporations need loads of help to link far-flung operations with the latest in E-mail
networks, inventory control, and finance packages. ''The productive sector of the economy is
becoming absolutely dependent on software systems,'' says reengineering author Michael Hammer. ''If
SAP vanished, you couldn't buy a can of Coke.''
SPECIALTIES. In the finance capitals of London, Tokyo and Hong Kong, banks are installing vast
new systems to adapt to Europe's single currency and Japan's financial deregulation. Meanwhile,
they're working overtime to sort out the Year 2000 glitch, the dating problem companies face when
the year of double zeroes rolls around. Mastech Corp., a Pittsburgh-based outsourcer, sent a handful
of programmers a year ago to follow a Citibank contract from Singapore to London (page 116). Once
in London, they found a wealth of other business and started importing more programmers from
South Africa, Sri Lanka, India, and Australia. ''We have 50 people now, and we'd hire another 50
today if we could find them,'' says country manager Guil Hastings.
As recruiters travel, they focus on regional specialties. The Russians are whizzes at math. India's
university at Puna has a strong Japanese language program, which positions it well for Japan's Year
2000 work-load. South African programmers learned to cope during the years of the anti-apartheid
boycott with a motley collection of jerry-rigged mainframes. This makes them especially adept at
Year 2000 work, which is targeted toward aging mainframe software.
As for programmers, the world is their oyster. In a computer lab in Austin, Tex., Natalia Bogataya and
her husband, Konstantin Bobovich, both Belorussians and products of Van Derven's so-called Russian
connection, labor away on a mainframe program. They've left their college-age children with relatives
in Minsk and are debugging insurance software for Computer Sciences Corp. ''We can't use our
experience in our country,'' Bobovich explains, ''and my wife said, 'Let's see America.'''
Why not? In today's fervid market, programmers can write their own
tickets.
By Stephen Baker, with Gary McWilliams in Austin, Tex., and Manjeet Kripalani in
Bombay
Source: http://www.businessweek.com/1997/29/b3536106.htm
MANCOSA - 61
Human Resource
1. What characteristics of the product demand market have led to the explosion in demand
for programmers.
The explosion in the demand for programmers has resulted from the information
revolution where computer applications are not just used by technology companies, but
also by companies which operate within other industries such as banks, brokerages,
phone companies, automobile manufacturers.
The explosion in the demand for programmers has also been exacerbated by the fact that
“the very act of writing software has not speeded up despite the computer revolution”
(Noe et al, 2003: 211). Thus the nature of programming work is tedious and takes up a
significant amount of time.
2. What characteristics of the programming job have limited the number of people willing
to develop the skills necessary to meet this demand?
The characteristics of the job of programming which have limited the number of people
wanting to develop the skills necessary to meet this demand include:
Programming is considered to be ‘geek’ or ‘nerd’ work and therefore a significant
number of bright young students choose to follow other careers;
The work of programming tends to be laborious: the case states that “even the best of
programmers painstakingly turn out some 10 lines of code a day”
(Noe et al, 2003: 211).
MANCOSA - 62
Human Resource
3. What options do employers in this market have to address the labour shortage?
Which option would be most successful?
Noe et al (2003) identifies seven options which could be used by employers in the
technology market to address the labour shortage. These include:
Overtime
Temporary employees
Outsourcing
Retrained transfers
Turnover reductions
New external hires
Technological innovation
It may be argued that the option that would be most successful in the medium term is that
of technological innovation. Indeed, an innovation which would provide for the
acceleration of the programming process would provide significant relief to the demand
for programmers. A further medium term to long term option that would be most
successful in the absence of technological innovation would be new external hires, where
the organisations are involved in the programmers’ pre-employment education by
providing bursaries to school leavers. Such an approach would also provide the
organisation with temporary workers during university vacations.
MANCOSA - 63
Human Resource
MANCOSA - 64
Human Resource
SECTION 4
MANCOSA - 65
Human Resource
CONTENTS
Learning Outcomes
Reading
4.1 Introduction
4.2 Recruitment
4.2.1 The Nature of Recruitment
4.2.2 Recruitment Policy
4.2.3 Factors Influencing Recruitment
4.2.4 Recruitment Sources
4.2.5 Advantages and Disadvantages of Internal and External Recruitment
4.3 Selection
4.3.1 Factors Influencing Selection Decisions
4.3.2 Selection Process
4.4 Induction
4.4.1 Introduction
4.4.2 The objectives and benefits of induction
4.4.3 Planning, designing and implementing the induction programe
4.4.3.1 Planning the induction programme
4.4.3.2 Designing the induction programme
4.4.3.3 Implementing the induction programme
4.4.4 Follow-up and evaluation of the induction programme
4.5 Summary
MANCOSA - 66
Human Resource
LEARNING OUTCOMES
The overall outcome for this section is that, on its completion, the student should be able to
demonstrate an holistic understanding of the HRM practices of Recruitment and Selection.
This overall outcome will be achieved through the student’s mastery of the following specific
outcomes:
2. Identify and apply the various recruitment policies organisations may adopt.
3. Identify and critically discuss the factors influencing recruitment within an organisation.
4. Critically discuss the various sources from which an organisation may draw job
applicants.
6. Identify and critically discuss the factors influencing selection within an organisation.
7. Critically discuss and effectively apply the selection process within an organisation.
MANCOSA - 67
Human Resource
READING
Prescribed Reading:
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M. (2006) Human
Resource Management: Gaining a Competitive Advantage 5th Ed. Boston:
Irwin McGraw-Hill. pp 216-247
Nel, P.S., Van Dyk, P.S., Haasbroek, G.D., Schultz, H.B, Sono, T. and
Werner, A. (2004) Human Resource Management 6th Ed. Cape Town:
Oxford. pp 231-244
Recommended Reading:
Books
Carrell, M.R., Elbert, N.F., Hatfield, R.D., Grobler, P.A., Marx, M. & Van der
Schyf, S. (1997) Human Resource Management in South Africa. New Jersey:
Prentice Hall Inc. pp 137 – 202.
Ivancevich, J.M. (1998) Human Resource Management. 7th Ed. Boston: Irwin
McGraw-Hill. pp 199 – 257.
MANCOSA - 68
Human Resource
Journals
MANCOSA - 69
Human Resource
4.1 Introduction
Section 3 of this module guide focused on the activity of Human Resource Planning.
Following on the activity of Human Resource Planning are the activities of Recruitment and
Selection, which are to be the focus of this section of the module guide.
The following recruitment and selection related issues will be examined in this section:
Recruitment
o The nature of recruitment
o Recruitment policies
o Factors influencing recruitment
o Recruitment sources
Selection
o Factors affecting selection decisions
o The selection process
4.2 Recruitment
This section examines the nature of recruitment, recruitment policies, factors influencing
recruitment as well as recruitment sources.
MANCOSA - 70
Human Resource
? THINK POINT
Ward (1998:16-23) identifies that most employers respond to the question ‘Why recruit?’
with the following answers:
To get work done;
To sell products and/or services;
To reduce work-loads;
To create new products;
To manage staff;
To train and develop staff.
Ward (1998:16-23) emphasises that such responses are inadequate and identifies the actual
reasons for the recruitment of people to be:
MANCOSA - 71
Human Resource
ACTIVITY
Contact your organisation’s HR Manager and request a copy of your organisation’s recruitment po
Identify the characteristics of your organisation’s approach to recruitment.
In your opinion is your organisation’s recruitment policy appropriate? In other words is there ‘fit
Comment on Activity
MANCOSA - 72
Human Resource
MANCOSA - 73
Human Resource
?
Comment on Think Point
THINK POINT
There are a number of sources from which an organisation can draw recruits. It is important,
however, Consider the organisations
that organisations select their for which you
recruitment have
sources worked.
carefully What source
as different sources
mechanisms
present the organisationwere
withused in your
different typesrecruitment?
of recruits. (i.e. did you if
For example, submit your CVthe
one considers
case studyelectronically in response
entitled ‘Forget to anMasses:
the Huddled internet Send
advertisement,
the Nerds’or(Noe
did you
et al,register with a
2003: 210-213)
which wasprivate
studiedemployment
in section 3agency?) In your
of this module opinion,
guide, using how effectiveas were
the internet these
a recruitment
source forrecruitment
programmerssources?
would be more effective than advertising in a local newspaper as
programmers spend most of their ‘idle hours’ browsing the World Wide Web (as indicated in
the case).
MANCOSA - 74
Human Resource
In summary, section 4.2 has focused on the HRM activity of recruitment. In so doing, the
nature of recruitment, recruitment policies, factors influencing recruitment and recruitment
sources have been examined. Section 4.3 will focus on the related activity of selection.
MANCOSA - 75
Human Resource
Internal Recruitment
Advantages Disadvantages
Provides greater motivation for good Creates “inbreeding” and stale ideas
performance Creates political infighting and pressures to
Provides greater promotion opportunities compete
for present employees Requires a strong management development
Provides better opportunity to assess programme
abilities Creates a homogenous workforce
Improves morale and organisational loyalty
Enables the employee to perform the new
job with little lost time
External Recruitment
Advantages Disadvantages
Provides new ideas and insights Loss of time due to adjustment
The existing organisational hierarchy Present employees cease to strive for
remains relatively unchanged promotions
Provides greater diversity Individual may not be able to fit with the rest
of the organisation
4.3 Selection
This section will focus on the HR activity of selection. In so doing, the factors influencing
selection decisions and the selection process will be examined.
Selection may be defined as “…the process by which an organization chooses from a list of
applicants the person or persons who best meet the selection criteria for the position
available, considering current environmental conditions” (Ivancevich, 1998: 227).
ACTIVITY
1. Read the short case entitled ‘Never having to say you never know’
Source: Noe et al (2006:247-248).
MANCOSA - 76
Human Resource
?
Comment on Think Point POINT
THINK
The various internal and external environmental factors impacting on selection programmes
and decisions are discussed
In your below
experience, whatin are
section
the 4.3.1.1
internaland
andsection 4.3.1.2.
external factors which influence
selection programmes and decisions within your organisation?
4.3.1.1 Internal Environmental Factors
Internal environmental factors which influence selection decisions include:
The size of the organisation where the smaller the organisation, the more informal the
selection decision;
The type of the organisation where greater complexity requires more sophisticated
selection techniques;
The nature of social pressure emerging from, for example, legislation and trade unions;
Applicant pool for a certain job, where larger numbers would require the selection
programme to be relatively sophisticated
Speed of decision making
Selection methods (Nel et al, 2004:234).
MANCOSA - 77
Human Resource
Williams (1996:27-30) shows that the Labour Relations Act has a significant impact on the
manner in which organisations within South Africa conduct selection activities. Indeed, the
Act stipulates that an organisation that either directly or indirectly discriminates against a job
applicant will be regarded to have committed an unfair labour practice.
Therefore South African organisations need to ensure that their selection practices are
consistent and equitable and do not discriminate against applicants. Williams (1996:27-30)
points out that this would, for example, require organisations:
To conduct effective job analyses in order to develop solid and realistic job requirements
and selection criteria;
To give attention to the manner in which job advertisements are formulated;
To handle applicants in a consistent manner;
In interviewing applicants to:
o Carefully phrase questions;
o Avoid potentially risky questions (e.g. questions which enquire about age, sexual
preference, disability, etc.);
o Structure the interview around job dimensions;
To only administer tests which are valid and job related.
MANCOSA - 78
Human Resource
Comment on Activity
ACTIVITY
A diagrammatic
Providerepresentation of the
a diagrammatic selection process
representation is provided
of the process in Figure
which 4.1 below:
the practice of
selection follows within your particular organisation.
PRELIMINARY SCREENING
Provisional Selection Interview Application Form
SELECTION METHODS
Testing Interview
Reference Checking Medical Examination
APPOINTMENT
Figure 4.1: The Selection Process (Adapted from Nel et al, 2004:235)
MANCOSA - 79
Human Resource
As indicated in Figure 4.1, the selection process consists of three main steps. The following
provides a brief description of each of the steps:
The provisional selection interview usually lasts in the region of 10 minutes and is used to
determine whether the applicant meets the minimum requirements (Nel et al, 2004:234).
The application form is designed to meet the needs and requirements of the organisation, and
provides information as to the applicant’s qualifications, experience, interests, etc. (Nel et al,
2004:235).
Applicants who are judged to have the minimum requirements, based on the provisional
selection interview and completed application form, will proceed to the next phase of the
selection process.
Tests which could assist the organisation with selection include assessments to measure
cognitive aptitude, psychomotor, job knowledge, work sample, vocational interest and
personality (Nel et al, 2004:239-240). Assessments centres are useful in gathering
information as to the performance of potential managers and supervisors.
MANCOSA - 80
Human Resource
Clause 8 of the Employment Equity Act of 1998 states “Psychological testing and other
similar assessments of an employee are prohibited unless the test or assessment being used
has been scientifically shown to be valid and reliable, can be applied fairly to all employees
and is not biased against any employee or group” (cited in Roodt, 1998: 33).
Roodt (1998) points out that this particular clause of the Employment Equity Act has
received much negative publicity, to the extent that it is has been misinterpreted and that
there have been suggestions of abandoning psychological assessment in its entirety.
However, Roodt (1998) asserts the value of psychological testing for organisations and
emphasises that psychological assessments should continue to be administered, provided that
this is done in a sound and ethical manner, and in accordance with the relevant labour
legislation.
Phase 3: Appointment
The final phase in the selection process involves making a choice between the applicants.
Various selection strategies can be utilized to assist the organisation in making this decision
(Nel et al, 2004:242). These strategies include the multiple predictor approach, the
placement approach and cost benefit analysis (Nel et al, 2004:235).
In summary, section 4.3 has focused on the HRM activity of Selection. In so doing factors
influencing selection as well as the selection process were examined.
MANCOSA - 81
Human Resource
4.4 Induction
4.4.1 Introduction
Starting a new job is considered to be one of the most stressful life experiences and a proper
induction process that is sensitive to the anxieties, uncertainties and needs of a new employee
is of the utmost importance.
Although induction means to introduce, or to initiate it is only part of the process that
endeavours to acclimatize the employee into the organisation and turn them into a productive
worker. Orientation means to become familiar with or adjusted to facts or circumstances. It is
the process of informing new employees about what is expected of them in the job and
helping them cope with the stresses of transition. Socialization means to adapt to life in
society. In the organisation, socialization is the process of instilling in all employees the
prevailing attitudes, standards, values and patterns of behaviour expected by the organisation
and its departments.
According to Nel et al, (2004:252) the main benefits of a successful induction process are:
A reduction in reality shock and cognitive dissonance
An alleviation of employee anxieties
A creation of positive work values and a reduction in start up costs
An improvement in relationships between managers and subordinates
MANCOSA - 82
Human Resource
MANCOSA - 83
Human Resource
Many companies make the mistake of believing that once a new employee has attended the
induction programme, nothing more is needed from the supervisor or manager. Instead,
regular checks should be initiated and conducted by the line manager after the employee has
been on the job one day and again after one week and by the HR representative after one
month (Casio, 1995:242).
4.5 Summary
Section 4 has focused on the HRM activities of Recruitment and Selection. In investigating
Recruitment, the nature of recruitment, recruitment policies, factors influencing recruitment
and recruitment sources were been examined. In the sub-section on Selection, the factors
influencing selection, as well as the selection process were examined. In the sub-section on
Induction, the objectives and benefits of the induction programme are discussed. The
planning and benefits of an induction programme is also examined.
Section 5 of this module guide will focus on Employee Training & Development.
MANCOSA - 84
Human Resource
SECTION 5
MANCOSA - 85
Human Resource
CONTENTS
Learning Outcomes
Reading
5.1 Introduction
5.3 Training
5.3.1 The Training Process
5.3.2 Training Within the South African Context
5.4 Development
5.4.1 Formal Education Programmes
5.4.2 Assessment
5.4.3 Job Experiences
5.4.4 Interpersonal Relationships
5.5 Summary
MANCOSA - 86
Human Resource
LEARNING OUTCOMES
The overall outcome for this section is that, on its completion, the student should be able to
demonstrate a holistic and practical understanding of employee training and development
within organisations. This overall outcome will be achieved through the student’s mastery of
the following specific outcomes:
7. Identify, critically discuss and effectively utilise the development approaches of formal
education, assessment, job experiences and interpersonal relationships.
MANCOSA - 87
Human Resource
READING
Prescribed Reading:
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M. (2006) Human
Resource Management: Gaining a Competitive Advantage 5th Ed. Boston:
Irwin McGraw-Hill. pp 254-318 and pp 380-419
Nel, P.S., Van Dyk, P.S., Haasbroek, G.D., Schultz, H.B, Sono, T. and
Werner, A. (2004) Human Resource Management 6th Ed. Cape Town:
Oxford. pp 424-467
Recommended Reading:
Books
MANCOSA - 88
Human Resource
Journals
MANCOSA - 89
Human Resource
5.1 Introduction
This section will explore the HR practices of Employee Training and Development. In so
doing, the following will be examined:
The concepts: training and development
Training
o The training process
Training needs analysis
Design and development of training
Delivery of training
Evaluation of training
o Training in the South African context
Development
o Approaches to development
Formal education
Assessment
Job experiences
Interpersonal relationships
A distinction can be made between the related concepts, Training and Development.
? THINK POINT
MANCOSA - 90
Human Resource
Van Dyk and Erasmus (1999) identify training as being task oriented and focused on
improving the learner’s job performance. Development, on the other hand, is argued to be
directed towards “creating learning opportunities and making learning possible within an
enterprise” (Van Dyk and Erasmus, 1999: 3).
Noe et al’s (2006) distinction between the concepts of training and development focuses on
the orientation of the learning intervention. It is argued that training “is focused on helping
employees’ performance in their current jobs” (Noe et al, 2003: 376) while development is
future-oriented in that it helps employees prepare “for other positions in the company and
increases their ability to move into jobs that may not yet exist” (Noe et al, 2003: 376).
Further distinctions between the concepts of training and development are highlighted in
Table 5.1 below.
TRAINING DEVELOPMENT
Focus Current Future
Use of Work Experiences Low High
Goal: Preparation for… Existing Job Changes
Participation Required Voluntary
5.3 Training
MANCOSA - 91
Human Resource
The training design process refers to a systematic approach for developing training
programmes designed to contribute to competitiveness. Figure 5.1 below represents the six
steps of this process, which emphasizes effective training practices (Noe at al, 2006:260)
MANCOSA - 92
Human Resource
TASK ANALYSIS
(In what do they need training?)
Figure 5.2: The Training Needs Analysis Process (adapated from Noe et al, 2006:261)
As can be seen from Figure 5.2, the needs analysis process starts with the identification of a
‘pressure point’ such as poor performance, new technology or job redesign. This pressure
point prompts the conducting of a needs analysis, which involves the following:
Organisational analysis where aspects of the organisational context (such as the firm’s
strategic impact, the training resources available and the support of managers and peers)
are considered (Noe et al, 2006:262).
Person analysis where the employees who require training are identified (Noe et al,
2006:262).
Task analysis which involves identifying the tasks, knowledge, behaviour and skills
which need to be emphasised in conducting the training.
The organisational, task and person analysis will produce certain outcomes which will direct
the organisations approach to training (Noe et al, 2006:262). The outcomes may indeed
show that the problem initially identified cannot be solved by training, but rather by another
HR intervention, such as job redesign.
MANCOSA - 93
Human Resource
Comment on Activity
ACTIVITY
MANCOSA - 94
Human Resource
Examples of the methods used in each of these categories are provided below:
Presentation Methods (Noe et al, 2006:281-283)
Method Description Advantages
Classroom Trainer lectures the group Least expensive
Instruction May include question and answer sessions, Least time-consuming
discussion and case studies to provide for Large number of learners
participation
Distance Used by geographically dispersed companies Company saves on travel costs
Learning Two-way communication between learners Employees at remote locations
and trainer have the opportunity to receive
Includes audioconferencing, training
videoconferencing and docuconferencing
Audiovisual Includes overheads, slides, video Video provides trainer with
Techniques Rarely used alone flexibility
Video exposes trainees to actual
problems
MANCOSA - 95
Human Resource
READING
Read the following journal article and then answer the questions which follow.
Kirkpatrick, D.L. (1983) ‘Four Steps to Measuring Training Effectiveness’.
Personnel Administrator. November, pp 19 – 25.
1. What reasons does Kirkpatrick (1983) identify for the evaluation of training?
MANCOSA - 96
Human Resource
Thus, Kirkpatrick’s (1993) four stage model of evaluation provides for the assessment of
training effectiveness not only at the level of the individual, but at the level of the
organisation as well. In so doing, Kirkpatrick acknowledges the role which training has to
play in contributing to the competitive advantage of the firm.
MANCOSA - 97
Human Resource
?
Comment on Think Point
THINK
The ‘new’ education, POINT
training and development system which is currently being built in
South Africa strives to address the weaknesses of the past system. The following table
Consider
provides an the aseducation,
indication training
to how the and development
‘new’ system system
will improve on thewhich you have
weaknesses of the
experienced within South Africa or the country of your choice over the past 15
‘old’ system.
to 20 years. What characteristics of this system did you find to be limiting?
PAST SYSTEM FUTURE SYSTEM
Varying quality between training A national quality management system is to be put in place to
providers and training programmes ensure consistent quality across all training providers and
training programmes
Focus on inputs and content Focus is to shift to outputs or outcomes
Learners rated against each other Learners assessed against national standard
(norm based assessment)
Teacher/trainer-centred Learner centred
No recognition of prior learning Recognition of prior learning (RPL) – learners will be able to
gain credit for knowledge and skills they acquire informally
Ad hoc reporting of learning A national record of learning database will be established to
achievements ensure centralised and consistent reporting of learning
achievements
Table 5.2:The differences between the ‘past’ and ‘future’ training and development system
within South Africa (adapted from Phillips, cited in Erasmus & Van Dyk, 1999: 13).
MANCOSA - 98
Human Resource
Figure 5.3:The National Qualifications Framework (NQF)(adapted from Bellis, 2000: 16).
The legislation which provides for the implementation of the NQF within South African
organisations will be discussed in section 9 of this module guide.
In summary, sub-section 5.3 focused on the HRM activity of training. In so doing the
training process was investigated and issues impacting on training within the South African
context were examined.
MANCOSA - 99
Human Resource
5.4 Development
As identified in sub-section 5.2, development interventions are future oriented and serve to
develop skills within employees which will enable them to move into jobs that possibly do
not yet exist (Noe et al, 2006:383)
Comment on Activity
ACTIVITY
This activity serves to provide the student with a sense of what development entails. The
Read the short case study on page 375 of Noe et al (2003) entitled ‘Developing
following characteristics of development interventions may be deduced from the case study:
employees reduces risk for First USA Bank’. What characteristics of
Development initiatives focus on producing high-quality managers;
development can you deduce from your reading of this case study?
Development approaches include:
o Recruiting college graduates and placing them on an accelerated development
programme which would prepare them for a management position within 3 to 5
years;
o Providing recruits with supervision from senior managers who oversee their training
and development and ensure that they receive the necessary experience;
o Identifying current employees who have potential to take on managerial
responsibilities. These employees receive financial support to get a management-
related education; and
o All of the above three programmes include individual coaching with a psychologist,
who works with the employees and their managers to improve on-the-job training
and development.
It is important to note that the First USA Bank case focuses on management development.
Indeed, traditionally development initiatives have focused on management level employees.
MANCOSA - 10
Human Resource
The First USA Bank case directly and indirectly points to the development approaches of
formal education, assessment, job experiences and interpersonal relationships (coaching).
These approaches will be discussed below.
Smith (1999) emphasises the need for formal education programmes, such as those identified
above, in equipping employees with the competencies necessary to cope with current
business trends such as globalisation and competitiveness, the knowledge economy and
knowledge management and the re-engineering of organisations.
5.4.2 Assessment
According to Noe et al (2003) assessment involves “collecting information and providing
feedback to employees about their behaviour, communication style, or skills” (p 383).
Assessment is frequently used to identify employees with managerial potential.
Organisations vary in their use of assessment methods. Popular methods, however, include:
The Myers-Briggs Type Indicator
The Assessment Centre
Benchmarks
Performance Appraisals and 360 Degree Feedback Systems
MANCOSA - 10
Human Resource
Read the following scenario taken from Noe et al (2003), page 409.
The answer to this Self-Check Question may be found at the end of this section.
MANCOSA - 10
Human Resource
Job experiences refer to “relationships, problems, demands, tasks, or other features that
employees face in their jobs” (Noe et al, 2006:396). Job experiences may be used for
employee development in various ways including:
Job rotation where the employee moves among jobs within a particular department (Noe
et al, 2006:398);
Transfers, Promotions and Downward Moves; and
Temporary Assignments with Other Organisations (Noe et al, 2006:399-400).
A mentor is “an experienced, productive senior employee who helps develop a less
experienced employee” (Noe et al, 2006:402). On the other hand, a coach may be defined as
“a peer or a manager who works with an employee to motivate him, help him develop skills
and provide reinforcement and feedback” (Noe et al, 2006: 404).
MANCOSA - 10
Human Resource
Assist employees in compiling and reviewing their development plans. Ensure these
development plans provide a balance between training initiatives to address skills
deficiencies, as well as development initiatives which address their marketability and
employability.
Be prepared to be an effective coach even if time is limited (ASTD, 1997).
5.5 Summary
This section has focused on Employee Training and Development. In so doing, the concepts
of training and development were examined. In investigating the activity of Training, the
training process as well as South Africa’s approach to training were studied. In investigating
the activity of Development the various development activities of assessment, job experience,
formal education and interpersonal relations were examined.
The following section, Section 6, will focus on the HRM issue of Performance Management.
MANCOSA - 10
Human Resource
The consultant may also consider the assessment approach of the assessment centre, where
multiple assessors would evaluate the employee’s performance on a number of exercises
(Noe et al, 2006:391). The exercises would provide the consultant with information as to the
employee’s administrative and interpersonal skills.
A further assessment approach which the consultant may consider is benchmarks. This is
“an instrument designed to measure the factors that are important to being a successful
manager”(Noe et al, 2006:393). The items measured by this instrument include the
employee’s competence in dealing with subordinates, creating a productive work
environment and utilising resources.
MANCOSA - 10
Human Resource
NOTES :
MANCOSA - 10
Human Resource
SECTION 6
PERFORMANCE MANAGEMENT
MANCOSA - 10
Human Resource
CONTENTS
Learning Outcomes
Reading
6.1 Introduction
6.6 Summary
MANCOSA - 10
Human Resource
LEARNING OUTCOMES
The overall outcome for this section is that, on its completion, the student should be able to
demonstrate a comprehensive understanding of performance management and its application
within organisations. This overall outcome will be achieved through the student’s mastery of
the following specific outcomes:
4. Critically discuss the performance management process and its integration with the
organisation’s strategy.
5. Discuss, evaluate and implement the comparative, attribute, behavioural, results and
quality approaches to performance management.
MANCOSA - 10
Human Resource
READING
Prescribed Reading:
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M. (2006) Human
Resource Management: Gaining a Competitive Advantage 5th Ed. Boston:
Irwin McGraw-Hill. pp 326-375
Nel, P.S., Van Dyk, P.S., Haasbroek, G.D., Schultz, H.B, Sono, T. and
Werner, A. (2004) Human Resource Management 6th Ed. Cape Town:
Oxford. pp 473-487
Recommended Reading:
Books
Carrell, M.R., Elbert, N.F., Hatfield, R.D., Grobler, P.A., Marx, M. & Van der
Schyf, S. (1997) Human Resource Management in South Africa. pp 257 – 306.
Ivancevich, J.M. (1998) Human Resource Management 7th Ed. Boston: Irwin
McGraw-Hill. pp 261 – 305.
MANCOSA - 11
Human Resource
Journals
MANCOSA - 11
Human Resource
6.1 Introduction
? THINK
Comment on Think Point POINT
MANCOSA - 11
Human Resource
SPECIFICATION OF PERFORMANCE
PERFORMANCECRITERIA
APPRAISAL
(Performance Measurement) PERFORMANCE FEEDBACK
ACTIVITY
2. Does the design of your organisation’s performance management system support the overal
answer.
Comment on Activity
MANCOSA - 11
Human Resource
MISSION
STRATEGIE
OBJECTIVES VALUES
CRITIC PERFORMANC
AL E
SUCCES INDICATORS
IDENTIFICATION PERFORMANCE SUCCESSION
OF POTENTIAL REVIEW PLANNING
TOTAL PERFORMAN
REWA CE
RD IMPROVEME
BETTER
PERFORMANCE
MANCOSA - 11
Human Resource
Figure 6.2 clearly demonstrates how the performance management process is integrated
with, and supports, the overall organisational strategy. The diagram shows that the
performance management process is essentially initiated with the formulation of the
organisation’s mission and strategy. While the mission provides the organisation with future
direction, the strategies specify the manner in which the organisation is to behave in order to
achieve the mission. From the strategies, objectives are formed, which precisely specify the
performance goals of the organisation, and organisational values are also determined
(Philpott & Sheppard cited in Carrell, 1997:259). The critical success factors identify the
key issues which contribute to successful performance. The performance indicators and
standards are determined in conjunction with the critical success factors and serve to identify
the standards required for effective performance (Philpott & Sheppard cited in Carrell,
1997:259). The performance review provides for the evaluation of individual performance
against the relevant objectives, values, critical success factors and performance indicators
and standards. The performance review will also serve to identify potential and will
contribute to succession planning. The results of the performance review will influence the
reward system which is implemented as well as the kinds of performance improvement
programmes (e.g. counseling, training, etc.) which will be initiated so as to bring about better
performance (Philpott & Sheppard cited in Carrell, 1997:259).
After having studied Noe et al (2006) pp 332 – 336, discuss the three purposes of
performance management.
The answer to this self-check question may be found at the end of this section
MANCOSA - 11
Human Resource
ACTIVITY
MANCOSA - 11
Human Resource
Comment on Activity
The various approaches to performance management each have their own respective
strengths and weaknesses. These will be identified in the discussion of the various
performance management systems below.
?
Comment on Think Point
THINK POINT
The main strength of the comparative approach is that it is useful when employee
What
performance in your
needs to beopinion are the This
differentiated. strengths and weaknesses
approach of the
also eliminates the comparative
problems of
leniency, approach
strictnesstoand
performance management?
central tendency, which is valuable in making administrative
decisions (Noe et al, 2006:343).
MANCOSA - 11
Human Resource
?
Comment on Think Point
THINK POINT
MANCOSA - 11
Human Resource
? THINK POINT
What strengths and weaknesses of the behavioural approach can you identify?
MANCOSA - 11
Human Resource
It provides for the linking of the organisational strategy and goals to the behaviour
required of the employee necessary for strategy implementation;
It provides employees with specific feedback about their performance;
The techniques used rely on thorough job analysis which in turn ensures reliability and
validity; and
Acceptability of this approach by employees and managers is usually high
(Noe et al, 2006:351).
Behaviours and behaviour measured need to be monitored and revised to ensure that they
are linked to the organisational strategy (which regularly changes);
It assumes that there is ‘one best way’ to do the job; and
It is least suited to complex jobs (Noe et al, 2006:351).
This approach is based on the premise that results are the one best indicator of how a
subordinate’s performance has contributed to organisational success (Noe et al, 2003).
Results-based techniques include:
Management By Objectives (MBO) where goal setting is cascaded down throughout the
organisation and the goals become the standard against which an employee’s
performance is measured; and
Productivity Measurement and Evaluation Systems (PROMES) which involves a
process of motivating employees to higher productivity (Noe et al, 2006:353).
? THINK POINT
In your opinion, what are the strengths and weaknesses of the results approach?
MANCOSA - 12
Human Resource
It incorporates and capitalises on the strengths of both the attribute and results approach
to performance measurement; and
It adopts a systems approach to performance measurement (Noe et al, 2006:358).
However, a possible weakness of the quality approach would be that organisations may be
hesitant to adopt it as a result of their long established use of more traditional approaches.
MANCOSA - 12
Human Resource
READING ACTIVITY
Read the following journal articles and then answer the questions which follow:
Kaplan, R.S. & Norton, D.P. (1996) ‘Using the Balanced Scorecard as a
Strategic Management System’. Harvard Business Review.
January – February , 74(1), pp 76 – 85.
Milliman, J.F.; Zawacki, R.A., Norman, C., Powell, L. & Kirksey, J. (1994)
‘Companies Evaluate Employees From All Perspectives’. Personnel Journal.
November, 73 (11) pp 99 – 104.
3. Are the approaches of Milliman et al (1994) and Kaplan & Norton (1996)
practical? Would your organisation benefit from the implementation of either
of these approaches?
MANCOSA - 12
Human Resource
While Milliman et al (1994:99-104) focus on including both internal and external customers
in the appraisal of an employee’s performance, (Kaplan & Norton, 1996:76-85). Balanced
Scorecard approach provides for considerable integration of the employee’s performance
with organisational strategy. The balanced scorecard is a strategic management system
which channels the abilities of employees towards achieving organisational goals (Kaplan &
Norton, 1996:76-85). In devising the organisation’s strategy, objectives and measures are set
which relate to four areas: finance, customer, internal business processes and learning and
growth. Individual employees are required to draw up their own Personal Scorecards which
serve to set their own performance objectives and measures in line with those identified by
the organisation (Kaplan & Norton, 1996:76-85). In identifying objectives and measures for
these four areas, the balanced scorecard not only facilitates a customer orientation but also
addresses system factors of assessment.
In summary, this section has focused on the five approaches towards performance
measurement: the comparative approach, the attribute approach, the behavioural approach,
the results approach and the quality approach.
MANCOSA - 12
Human Resource
Read the case study entitled “Focusing on the Softer Side of Managing” - Noe et
al (2006:375-376) and answer the questions which follow:
2. The quality approach argues that systems factors need to be taken into account in perfo
How would you control for systems factors in the performance management approach whic
to question 1?
.
Questions have been adapted from Noe et al, (2006: 376).
The answer to this Self-Check Question may be found at the end of this section
6.6 Summary
This section investigated Performance Management. In so doing, the concept was defined
and the process of performance management was examined. The purposes of performance
management were also given attention, as were the various approaches to performance
management.
MANCOSA - 12
Human Resource
Self-Check Question 1
Model Answer
The purposes of performance management are strategic, administrative and developmental.
Strategic Purpose
A performance management system serves to link employee performance to the overall
organisational strategy and organisational objectives (Noe et al, 2003). However, research
has shown that very few organisations utilise performance management in a manner which
supports the strategy of the organisation.
This strategic purpose may be achieved through designing evaluation mechanisms which
define employee performance in terms of the organisation’s strategy and goals. It is
important, however, that the performance management system is sufficiently flexible so as to
adapt to changes in the organisational strategies and goals (Noe et al, 2003).
Administrative Purpose
Performance management systems provide information which assist organisations with
administrative decisions relating to issues such as to salary administration (pay raises),
layoffs and promotions (Noe et al, 2003).
Developmental Purpose
Performance management systems provide information about employee strengths and
weaknesses and in so doing identify employee developmental needs (Noe et al, 2003).
MANCOSA - 12
Human Resource
Self-Check Question 2
Model Answer
1. What performance management approach would you recommend Granite use in order to
improve productivity?
The quality approach may also be used. As this approach focuses on the customer, as well as
the elimination of errors (Noe et al, 2003) it would therefore be effective in targeting the
improvement of Granite on-time flight performance. A specific quality-based technique
which it is recommended that Granite use is 360-degree feedback (Milliman et al, 1994)
which provides for feedback on employees’ performance from both internal and external
customers.
2. The quality approach argues that systems factors need to be taken into account in
performance management systems.
How would you control for systems factors in the performance management approach
which you recommended in your answer to question 1?
MANCOSA - 12
Human Resource
SECTION 7
COMPENSATION
MANCOSA - 12
Human Resource
CONTENTS
Learning Outcomes
Reading
7.1 Introduction
7.7 Summary
MANCOSA - 12
Human Resource
LEARNING OUTCOMES
The overall outcome for this section is that, on its completion, the student should be able to
demonstrate a comprehensive understanding of the HR practice of compensation This overall
outcome will be achieved through the student’s mastery of the following specific outcomes:
MANCOSA - 12
Human Resource
READING
Prescribed Reading:
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M. (2006) Human
Resource Management: Gaining a Competitive Advantage 5th Ed. Boston:
Irwin McGraw-Hill. pp 460-493 and pp 498-527
Nel, P.S., Van Dyk, P.S., Haasbroek, G.D., Schultz, H.B, Sono, T. and
Werner, A. (2004) Human Resource Management 6th Ed. Cape Town:
Oxford. pp 267-283
Recommended Reading:
Books
Carrell, M.R., Elbert, N.F., Hatfield, R.D., Grobler, P.A., Marx, M. & Van der
Schyf, S. (1997) Human Resource Management in South Africa. New Jersey:
Prentice Hall Inc. pp 369 – 390.
Ivancevich, J.M. (1998) Human Resource Management 7 th Ed. Boston: Irwin
McGraw-Hill. pp 306 – 341 & pp 345 – 374.
MANCOSA - 13
Human Resource
Journals
MANCOSA - 13
Human Resource
7.1 Introduction
ACTIVITY
Comment on Activity
MANCOSA - 13
Human Resource
Compensation has a considerable impact on employee attitudes and behaviour and is critical
to assisting the organisation in attaining its strategic goals (Noe et al, 2006:462).
?
Comment on Think Point
THINK POINT
Noe et al Within
(2006:463)
youremphasise how what
organisation, Equityfactors
Theoryin influences
your viewcompensation.
influence the Equity theory
approach
argues that “a person
adopted compares
towards her own ratio of perceived outcomes (e.g. pay, benefits,
compensation?
working conditions) to perceived inputs (e.g. effort, ability, experience) to the ratio of a
comparison other” (Noe et al, 2006:463). If equity is perceived, no change will occur in the
employee’s behaviour or attitudes. However, if inequity is perceived, the employee will take
steps to restore equity through, for example, reducing the amount of effort he/she exerts.
The implication which Equity Theory has for compensation is that employees’ behaviour and
attitudes will be affected if inequity with other employees is perceived. The types of
comparisons which are possible include:
External equity: where comparisons are made with employees holding similar positions
within other organisations;
Internal equity: where comparisons are not only made with employees performing the
same job, but with employees in different jobs and at different levels within the same
organisation.
MANCOSA - 13
Human Resource
Ivancevich (1998) identifies external and internal factors which influence the organisation’s
choice of compensation system.
COMPENSATION SYSTEM
Influenced by
As identified in Figure 7.1 above, the External Environmental Factors which influence the
organisation’s choice of compensation system include:
The Labour Market where supply and demand may impact on levels of pay, e.g. higher
levels of pay may apply if few skilled employees are available within the job market.
Economic Conditions where high degrees of competitiveness within industries
negatively affect the ability of the organisation to pay high wages (Ivancevich, 1998);
Government Influences where legislation, such as the Basic Conditions of Employment
Act in South Africa, controls and guides issues such as minimum wage and overtime
pay.
Union Influences where unions affect compensation levels through entering into
negotiations with management.
MANCOSA - 13
Human Resource
Organisational Strategy and Goals where the compensation approach adopted by the
organisation should support the effective implementation of the company’s strategy;
Labour Budget where the amount of money available within the organisation for
employee compensation during a given year is specified (Ivancevich, 1998);
Compensation Decision Makers which includes top management and possibly the
organisation’s employees.
When developing compensation structures and levels it is important that the organisation
considers:
Current market pressures;
Whether the organisation views the employee as a resource (rather than just a cost);
Whether the organisation wishes to pay at, below or above the market; and
Whether the organisation wishes to conduct a pay survey so as to benchmark its practices
against those of the competition (Noe et al, 2006:466)
The development of compensation structures and levels requires the development of job
structures on which the development of pay structures is based.
ACTIVITY
Consider your organisation. Identify the system of job evaluation used by your
organisation (consider Peromnes, Paterson, Hay, the ‘Q’ method). What does
this job evaluation system mean to you?
MANCOSA - 13
Human Resource
Comment on Activity
Job evaluation is an administrative procedure which is used to measure job worth (Noe et al,
2006:468). A job evaluation system identifies compensable factors which are the
“characteristics of jobs that an organization values and chooses to pay for” (Noe et al, 2006:
468). These compensable factors are weighted during job evaluation so as to indicate their
value to the organisation. Compensable factors include:
Job complexity
Required experience
Required education
Working conditions
Responsibility (Noe et al, 2006:468).
Job evaluation usually involves committees in rating particular jobs on the compensable
factors.
Various job evaluation systems are in operation. These include the Peromnes system which
was developed by SA Breweries, the Paterson decision making band model, the Hay method
which was developed in the 1950s in the USA and the Q-method developed by the National
Institute for Personnel Research (Nel et al, 2004:272).
MANCOSA - 13
Human Resource
After having read Noe et al (2000:460-496) and having worked through section
7.1 – 7.4.2 above, consider the following scenario and answer the following
questions.
You are the HR Manager for a medium sized organisation. The Managing
Director has asked you to evaluate whether your organisation’s current pay
structure is market related.
The answer to this self-check question may be found at the end of this section
MANCOSA - 13
Human Resource
Thus far, this section of the module guide has focused on compensation systems which are
job-based.
?
Comment on THINK POINT
Think Point
MANCOSA - 13
Human Resource
Oliver (1995:5) in addressing the issue of executive compensation within the South African
context asserts that “historically, companies have developed each component of executive
compensation discreetly ….[and]….the relationship between performance and reward has
seldom been articulated in clear and unambiguous terms”. He emphasises that executive
compensation within South Africa needs to involve a performance contract which serves to
align pay with performance.
In section 7.5 the challenges of job-based compensation systems were discussed. This
section serves to examine compensation systems which are structured to reward employees
for contributions to the organisation’s success.
MANCOSA - 13
Human Resource
INCENTIVE
COMPENSATION SYSTEMS
BALANCED SCORECARD
Merit pay programmes have been criticized by Deming (cited in Noe et al, 2006:507) who
argues that it is unfair to rate individual performance as “apparent differences between
people arise almost entirely from the system that they work in, not the people themselves”
(Deming cited in Noe et al, 2006:508). A further criticism of this approach is that it
discourages teamwork. It is also argued that merit pay programmes do not actually exist in
that merit increases are allocated within the boundaries of predetermined merit increase
budgets.
Individual incentives tend to be rare and therefore have the disadvantage of not providing for
the development of a problem solving, proactive workforce (Noe et al, 2006:510). Further,
as with merit pay programmes, individual incentives tend to undermine teamwork.
MANCOSA - 14
Human Resource
The advantages of profit sharing include employees in approaching issues from the
perspective of the business owner and labour costs being reduced during difficult periods
(Noe et al, 2006:511). Disadvantages of profit sharing include the failure of employees to
identify the relationship between the work which they perform and the organisation’s profit.
Also, profit sharing does not necessarily provide for the high motivation of individual
employees (Noe et al, 2006:512).
Comment on Activity
READING ACTIVITY
The two articles by Thomson recognise the importance of profit sharing within today’s
business environment.
Read the following journal articles and then answer the questions which follow.
Thomson, D (1996) ‘Sharing Corporate Wealth – Have We Forgotten How
The article entitled ‘Sharing Corporate Wealth – Have We Forgotten How to Share?’
To Share?’. Human Resource Management. October, pp 10 – 12.
highlights the weaknesses of a number of compensation systems in that it asserts that after
concluding individual employment contracts “….we have one contract per employee…we do
Thomson, D (1997) ‘Institutional Barriers to Profit Sharing’.
not have any other contracts or arrangements in terms of which these individual employees
Management Today. February, pp 34 – 37.
1. In these two articles, what are the key issues which Thomson identifies with
regards to profit sharing?
MANCOSA - 14
Human Resource
will be persuaded to work together as a team. Surely we should have some group sharing to
secure the involvement of employees in the enterprise?” (Thomson, 1996: 11). In addition to
identifying how profit sharing can secure employee involvement and promote teamwork,
Thomson (1996:10-12) questions why many organisations have failed to provide for profit
sharing.
7.6.1.4 Ownership
Ownership may be achieved through the issuing of share options to employees or by
implementing employee stock ownership plans (ESOPs). The advantages and disadvantages
of ownership are similar to that of profit sharing.
7.6.1.5 Gainsharing
Gainsharing provides “a means of sharing productivity gains with employees” (Noe et al,
2006:516). This differs from profit sharing in two ways: the programme measures
departmental / group performance and payments are made more frequently than with profit
sharing schemes.
MANCOSA - 14
Human Resource
MANCOSA - 14
Human Resource
Read the case study entitled ‘At Northwest, An ESOP in Name Only’ provided
below and answer the following questions:
(Questions above have been taken from Noe et al, 2000: 444)
The answer to this self-check question may be found at the end of this
section
Well, not quiet. Today, Northwest’s labour relations are the industries worst. It’s pilots struck on
August 29th and neither side seems in a hurry to settle. Even if they do soon, the unrest is likely to
spread to the mechanics, who rejected a tentative pact on August 19th. Flight attendants may not be far
behind.
Still, don’t blame employee stock ownership plans for Northwest’s woes. Northwest’s experience
shows, by conspicuous absence, what ESOPs needs to successful : genuine employee inputs into
corporate decisions. Only by coupling a financial stake with worker involvement can employee
ownership deliver on its promise. “An ESOP raises expectations that need to be met,” says Corey
Rosen, executive director at the National Centre for Employee Ownership. Otherwise, “You can cause
a company to perform worst because people feel manipulated.”
SHORTCHANGED. Where did Northwest’s ESOP go wrong? For starters, the stakes of many of its
employees don’t vary with the stock price. Northwest was a private company in 1993 and the $900
million that 39 000 employees gave in concessions was as much a loan as a true piece of the
company. Only the pilots – whose large salaries allow them to take more risk – converted their take to
common stock when Northwest went public in 1994. Most flight attendants and machinists did not
follow suite. They can still do so – but at a conversion rate 50% below the pilots’. The rst will be paid
back their concessions in 2003. Their prospects remain the same whether Northwest stock trades at
$60 as it did in March or at today’s $28.
MANCOSA - 14
Human Resource
Even the pilots feel short changed, Sure, they have sold 40% of their stock so far at a gain of $117
million. But that goes into their retirement accounts, while top Northwest executives were able to cash
in millions of dollars worth of stock while it was near its peak. When the company then took out TV
ads calling pilots greedy, many were outraged.
Northwest and its workers also failed to change how the company is run. Yes, 3 union representatives
joined the board and the company asked them to stay on after the givebacks ended in 1996. But at the
airport and in the sky little changed. “We still have some of the employee committees,” says pilot
spokesman Paul Omodt, “But obviously, they are not listening to us.”
Compare that with UAL corp’s United Airlines Inc., whose employees bought fifty five percent of the
company in 1994. At UNITED, the workers share came back in stock and ticker-watching is now a
daily ritual among employees, Moreover the two sides set up procedures so that employees have a say
in running the place; workers vetoed a proposed merger with the US Airways in 1995. The two sides
also used mediation more often to resolve such issues such as retiree benefits. United pilots hoped to
reach a new contract before the current one expires in April of 2000 – a rare feat in the industry. Of
course, United has its own labour troubles, but even those reflect the holes in its ESOP. Last spring,
the airline and the International Association of Machinists and Aerospace Workers traded angry
words when the IAM tried to sign up ticket agents. The union succeeded largely because agents felt
excluded by the 1994 ESOP. Still, United culture helped to prevent outright warfare. Says United
CEO Gerald Greenwald, “To me the test is whether we are able to talk out way trough the tough
issues.”
That’s a test Northwest and its unions have failed miserably. Pilots and executives are staring each
other down while planes sits idle and other workers mull their own strikes. The question now is
whether managers and employees can patch up their differences and get off the ground. If they wait
too long, they risk a fate similar to that of Eastern Airlines Inc. or Pan American airways Inc.- carriers
that set up ESOPs in the 1980’s without really changing relations with employees. Just look at the
corporate obituaries to see what happened to them.
7.7 Summary
This section of the HRM module guide examined the HRM activity of Compensation. In so
doing, the nature of compensation was investigated and the development of compensation
structures and levels was studied. The types of incentive-based compensation systems and
the criteria for their effective implementation were also examined.
Section 8 of this module guide will focus on Employee Benefits and Services.
MANCOSA - 14
Human Resource
Model Answers
You are the HR Manager for a medium sized organization. The Managing Director has
asked you to evaluate whether your organisation’s current pay structure is market related.
Your survey should also investigate the return on investment which your competitors are
receiving for the compensation packages which they are offering to their employees.
2. If you were to find that your organisation’s compensation structure differed from
competing organisations, what might the reasons for this be?
Your organisation’s compensation structure may differ from your competitor’s in that you
may provide rewards other than compensation. For example, your organisation may use
flexible working hours or intensive training for all employees as a means to reward
employees.
3. What could the consequences be for your organisation for having a compensation system
which is not in line with your competitors?
Noe et al (2000) point out that if your organisation’s compensation structure is above that of
your competitors, your organisation may find it difficult to compete because of its high
labour costs. On the other hand, if the market pay survey shows that your organisation is
paying below your competitor’s compensation structure, your organisation may have
difficulty in attracting and retaining suitably qualified and experienced employees.
MANCOSA - 14
Human Resource
Model Answers
Case Study: ‘At Northwest, An ESOP in Name Only’ (Noe et al, 2000: 443-444)
MANCOSA - 14
Human Resource
MANCOSA - 14
Human Resource
SECTION 8
MANCOSA - 14
Human Resource
CONTENTS
Learning Outcomes
Reading
8.1 Introduction
8.6 Summary
MANCOSA - 15
Human Resource
LEARNING OUTCOMES
The overall outcome for this section is that, on its completion, the student should be able to
demonstrate a comprehensive understanding of employee benefits and services. This overall
outcome will be achieved through the student’s mastery of the following specific outcomes:
2. Identify and discuss the reasons for the growth in employee benefits and services.
3. Identify and critically discuss the various types of employee benefits and services.
4. Discuss the importance, and the process involved, in effectively administering employee
benefits and services.
MANCOSA - 15
Human Resource
READING
Prescribed Reading:
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M. (2006) Human
Resource Management: Gaining a Competitive Advantage 5th Ed. Boston:
Irwin McGraw-Hill. pp 532-569
Nel, P.S., Van Dyk, P.S., Haasbroek, G.D., Schultz, H.B, Sono, T. and
Werner, A. (2004) Human Resource Management 6th Ed. Cape Town:
Oxford. Chapter 11
Recommended Reading:
Books
Carrell, M.R., Elbert, N.F., Hatfield, R.D., Grobler, P.A., Marx, M. & Van der
Schyf, S. (1997) Human Resource Management in South Africa. pp 390 – 409.
Ivancevich, J.M. (1998) Human Resource Management 7th Ed. Boston: Irwin
McGraw-Hill. pp 375 – 401.
MANCOSA - 15
Human Resource
8.1 Introduction
This section focuses on Employee Benefits and Services. In so doing, the following will be
examined:
The nature of employee benefits and services
Reasons for growth in employee benefits and services
Different types of benefits and services
Administration of benefits and services
Comment on Activity
ACTIVITY
Nel et al,Consider
(2006:534)
your defines employee
organisation’s benefits
approach as “itemsbenefits
to employee in total
andpackage
services offered to
employees over and above salary, which increase their wealth or well-being… such as
pensions, 1.
sickWhat
pay, … ” On and
benefits the other hand,
services Ivancevich
does (1998:376)
your organisation defines
provide foremployee benefits
its employees?
as “indirect financial compensation….employer provided rewards and services other than
wages and2.salaries”.
Why does your organisation provide its employees with benefits and services?
MANCOSA - 15
Human Resource
Organisations may provide employee benefits and services to keep the organisation
competitive in attracting and retaining employees, to improve employee performance, to
fulfil agreements with trade unions, and/or to comply with legislation (Ivancevich,1998:376).
Nel et al (2004:268-272) emphasise that the reward environment is thus the starting point for
adding value to the organisation and it would result in lower labour turnover, lower
absenteeism and better public relations.
Identify five factors which may influence the organisation’s provision of services and
benefits. These are:
Government requirements as stipulated by legislation, for example unemployment
insurance, accident insurance and pensions.
Economic and labour market conditions. Under difficult economic conditions,
organisations looking for the best employees will look for better benefits and services,
which usually mean non-taxable income.
The aims of management may affect these benefits and services. For example,
management might strive for employee satisfaction or oppose trade unions.
Competition can prompt an organisation to adapt or expand its benefit plans.
The preferences or attitude of employees towards the programme. In order for benefits to
increase employee satisfaction. Employees must know what their benefits are and must
prefer the benefits in their organisation to those offered by competitors. In addition, they
must know that the benefits will satisfy their needs better than the benefits offered by
competitors.
The offering of employee benefits and services effectively emerged during the Great
Depression of 1929 to 1933, as a result of Franklin Roosevelt’s legislative programme to
buffer the devastating effects of the Great Depression (Noe et al, 2006:536). A further factor
which initiated the growth in employee benefits and services is the tight wage control and
labour shortage brought about by World War II, which resulted in employers using benefits
to attract and retain suitable employees (Noe et al, 2006:536).
MANCOSA - 15
Human Resource
? THINK POINT
The passage above identifies two reasons which initiated the growth in employee
benefits and services. What more recent factors have contributed to the
expansion of employee benefits and services?
The following relatively recent factors which have contributed to the growth in employee
benefits and services:
Taxation: in order to provide employees with some form of tax relief, salaries may be
structured to incorporate tax-free benefits.
Labour Market Conditions: organisations often use employee benefits in order to attract
and retain employees.
Insurance Costs: in order to address the rising costs of medical treatment, disability
insurance and pension funds, employers attain insurance for their employees as a group.
The Influence of Trade Unions: their biggest contribution has been the improvement
and increase in the number of benefits initiated by the employers.
Changed Employee Needs: The rise in living standards has resulted in employees
focusing on the satisfaction of their higher order needs (Noe et al, 2006:536-538).
Employee benefits and services may be classified as voluntary or mandatory. As Figure 8.1
shows, in South Africa, mandatory employee benefits and services include leave,
unemployment insurance and compensation for injuries and diseases. Voluntary employee
benefits and services within South Africa include pension, insurance and employee services
such as childcare programmes and food services.
MANCOSA - 15
Human Resource
EMPLOYEE
BENEFITS & SERVICES
MANDATORY VOLUNTARY
Leave Pension
ACTIVITY
Consider your experience within South African organisations. How does the South African environ
8.1 above.
Comment on Activity
The impact of the South African context on an organisation’s provision of employee benefits
and services will be addressed in the discussion of the various types of benefits below.
8.4.1 Leave
Leave benefits include:
Annual leave
In South Africa, the Basic Conditions of Employment Act of 1997 specifies that employees
are entitled to at least 21 days paid annual leave per 12 months of employment.
MANCOSA - 15
Human Resource
Sick leave
This refers to the “The number of days sick leave to which an employee is entitled depends
on company policy regarding seniority and period of service” (Nel et al, 2004:280). In South
Africa, the Basic Conditions of Employment Act of 1997 specifies that employees are entitled
to six weeks paid sick leave per 36 months of employment.
Maternity leave
Expecting female employees are entitled to maternity leave. In South Africa, the Basic
Conditions of Employment Act of 1997 specifies that “an employee is entitled to at least four
consecutive months maternity leave” (section 25[1]).
In South Africa, the Unemployment Insurance Fund came into effect as a result of the
Unemployment Insurance Act of 1946, which was later replaced by the Unemployment
Insurance Act of 1966. This piece of legislation is currently under review and the
Unemployment Insurance Bill was released in 2000. This bill serves to address the
shortcomings of the 1966 Act which include:
Weak enforcement and compliance measures;
A rigid benefit structure;
No comprehensive database of contributors; and
Discrimination against certain categories of employees (RSA, 2000).
MANCOSA - 15
Human Resource
In South Africa the Pension Fund Act of 1956 is currently being reviewed so as to bring the
legislation in line with current international practice. The Pension Funds Second Amendment
Bill of 2001 was released during January 2001.
8.4.5 Insurance
Employers normally provide employees with medical insurance as well as life and disability
insurance.
MANCOSA - 15
Human Resource
Comment on Reading Activity
READING ACTIVITY
Boase (1996:37) emphasises that parental rights (not just maternity rights) of employees
should be given attention in the workplace. It is argued that “traditionally employers have
Read the following journal article:
not been willing to assume responsibility for childcare, even though working-class parents
Boase, N. (1996) ‘Childcare – A Logical Extension of Parental Rights?’.
with preschool children make up the largest proportion of the workforce”.
People Dynamics. April, 14 (3), p 37.
Boase (1996:37) argues that companies should address this issue by:
What issues does Boase (1996) raise?
Recognising that childcare is a social responsibility of the company;
Recognising that childcare is not solely a mother’s responsibility;
Recognising that the use of family members (e.g. grandparents) to care for children is
becoming less common;
Providing flexi-time for working mothers;
Providing a childcare facility in the workplace;
Subsidising crèches and the training of childminders.
MANCOSA - 15
Human Resource
In summary section 8.4 addressed the types of employee benefits and services which
organisations may provide. These include leave, unemployment insurance, compensation for
injuries and diseases, pensions, medical insurance, life and disability insurance and other
employee services such as childcare programmes.
?
Comment on Think Point
THINK
Ivancevich (1998) POINT
argues that the following process will assist a company in effectively
managing its employee benefits and services programme:
How does your organisation go about managing its employee benefit and service
programme? Is your organisation’s approach effective? Why / Why not?
Step 1: Set Objectives and Strategy for Benefits
The organisation needs to decide whether to adopt a:
o pacesetter strategy where the organisation will be first with the latest benefits which
employees desire;
o comparable benefits strategy where the organisation will match the benefits provided by
its competitors;
o minimum benefits strategy where the organisation will only provide mandatory benefits
(Ivancevich, 1998).
It is important that the benefits strategy which is chosen supports the overall organisational
strategy.
MANCOSA - 16
Human Resource
8.6 Summary
This section addressed the HR issue of Employee Benefits and Services. In so doing, the
nature of employee benefits and services was examined and reasons for the growth in
employee benefits and services was investigated. The types of employee benefits and
services offered by organisations, as well as the administration of such benefits, were also
studied.
MANCOSA - 16
Human Resource
MANCOSA - 16
Human Resource
SECTION 9
MANCOSA - 16
Human Resource
CONTENTS
Learning Outcomes
Reading
9.1 Introduction
9.4 The parties to the employment relationship and their respective roles
9.6 Summary
MANCOSA - 16
Human Resource
LEARNING OUTCOMES
The overall outcome for this section is that, on completion, the student should be able to
demonstrate a basic understanding of employment relations within a national context. This
overall outcome will be achieved through the students mastery of the following specific
outcomes, in that a student will be able to:
1. Define the concept of employment relations
2. Identify and discuss the major theories of employment relations.
3. Explain the concept of the tripartite relationship by having identified the parties to the
labour relationship.
4. Identify and be aware of how the various environmental factors impact on the labour
relationship.
MANCOSA - 16
Human Resource
READING
Prescribed Reading:
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M. (2006) Human
Resource Management: Gaining a Competitive Advantage 5th Ed. Boston:
Irwin McGraw-Hill. pp 532-569
Nel, P.S., Van Dyk, P.S., Haasbroek, G.D., Schultz, H.B, Sono, T. and
Werner, A. (2004) Human Resource Management 6th Ed. Cape Town:
Oxford. Chapter 11
Recommended reading:
Bendix, S. (2000) Industrial Relations in the new South Africa.3 rd edition
revised). Cape Town: Juta and Co.
Nel, P.S, Swanepoel, B.J., Kirsten, M., Erasmus, B.J. and Tsabadi, M.J. (2005)
South African Employment Relations: Theory and Practice.5 th edition.
Pretoria: Van Schaik Publishers.
Venter, R. (ed) (2003) Labour Relations in South Africa (revised edition) Cape
Town: Oxford University Press.
MANCOSA - 16
Human Resource
9.1 Introduction
Salamon (1998:3) suggests that industrial relations is often perceived as being synonymous
with stereotypical blue-collar, all-male unionized workers in the mining or manufacturing
industry. The term labour relations however tends to reflect to a greater extent the realities of
the employment relationships in the post-industrialized era.
The growth of the services industries facilitated to a large extent by the growth in
information technologies and changing global demographics has prompted the need for an
accurate definition and study of the employment relationship. Although the relationship
between employees and employers does include an element of conflict it is actually
interdependent. This interdependence between the parties to the employment relationship
ensures mutual reliance for the realization of their respective aspirations whether they be
work or non-work related. Thus the purpose of labour relations can be seen as the creation
and promotion of harmonious working environments through the regulation of the
employment relationship.
An early attempt to define the field of industrial relations was made by Dunlop (1958) He
defined an industrial relations system as follows:
“ It is comprised of certain actors (managers, workers, and specialized government agencies),
certain contexts (technological characteristics, the market an the distribution of power in the
society), an ideology which binds the industrial relations system together and body of rules
created to govern the actors at the workplace and the work community (Dunlop, 1958:7).”
MANCOSA - 16
Human Resource
According to Dunlop (1958), the actors establish rules for the workplace and work
community. These rules are essentially aimed at governing the relations and the interaction
between the actors and therefore include the establishment of justice in the workplace. He
also emphasized that the environment surrounding the workplace influences the actors and as
such the industrial relations system of any country exists alongside other systems such as the
economic systems and the technological system.
Flanders (1965:4) defined industrial relations as a study of the institutions of job regulation.
Hyman (1975: 12) preferred to focus on the processes of industrial relations describing the
field as the study of the processes of control over work relations which include job regulation.
Early perspectives tended to focus on the conflict regulatory aspects and the institutions
involved in the rule making and work control processes in the employment context.
Gradually other perspectives developed and since the 1980’s the definition and scope of this
field has attracted renewed interest and debate in the early 1990’s the debate was taken
further when it was renamed employment relations.
The acknowledgement of the centrality of the employment relationship – in its totality –to
industrial relations thus greatly facilitated the broadening of this field both in theory and
practice. This shift has brought about the merging of human resource management and
industrial relations into what has now become known as employment relations. Employment
relations as a field thus cover everything that emanates from or impacts on the employment
relationship.
Salamon (1998:5-9) suggests three major approaches to labour relations namely the pluralist
approach, the unitarist approach and the radical or Marxist approach. Each of these will be
discussed in more detail below.
MANCOSA - 16
Human Resource
groups in the organisation are competitive in terms of leadership, authority and loyalty. Trade
unions are accordingly accepted as a legitimate forum for coordinating various interests and
expressing them accordingly. There is a greater scope for conflict because of this interface
between a variety of interest groups and a greater dissemination of power that has now been
accepted as rationale and inevitable (Salamon, 1998:7).
Conflict is primarily the result of the tensions that arise between the parties to the
employment relationship as a consequence of the differing roles they play. Management is
responsible for the efficiency, productivity and productivity and profitability of the
organisation. The concerns of the individual worker are, however wider than this and include
personal aspects such as higher pay, better working conditions, job security and more
meaningful work. Conflict results from industrial and organizational factors rather than from
individual, personal factors. The conflict that does arise is manageable through a system of
negotiated trade-offs and settlements. The pluralists argue that in the employment
relationship there is a constantly shifting balance of power that needs to be maintained
through compromise and collaboration (Venter, 2004:7).
MANCOSA - 16
Human Resource
Organisations are accordingly geared to wealth generation and the labour relationship is
structured to conform to the devolution of power from top to bottom. Marxism by contrast
promotes an order in which productive capacity (including land, capital and labour) and the
fruits thereof are owned by and shared among the people (Vories, 1991:88).
Industrial conflict can therefore be seen from a Marxist perspective as an expression not only
of organizational conflict but of wider divisions within society as a whole (Salamon, 1998:9).
Accordingly trade unions should only be seen as vehicles of fundamental societal change.
One of Marx’s biggest criticisms was that it alienates workers mainly due to the strict
division of labour that seeks to achieve maximum efficiency. A factory system ultimately
alienates workers from their produce, their potential, their efforts and each other. All
employees efforts are geared toward the production for the benefit of employer and the
employee. Under a Marxist system there is no division of labour. Everything is produced for
the benefit of the whole rather than the individual and society rather than the market will thus
determine what is produced for whom. (Vorhies, 1991:88). Ideally people will work for the
sake of working and not what they stand to gain in return.
9.4 The parties to the employment relationship and their respective roles
The labour relationship is essentially a relationship between employer and employees, as well
as between employer/employee and the state, thus making it a tripartite relationship (Venter,
2003:9).
The role of the state is to create, by means of policy and legislation a framework within
which the other parties can conduct their relationships.
The employer refers to the organisation as a legal entity and the employing organisation. The
employee traditionally refers to the workers and their representative bodies, namely trade
unions (Nel, et al. 2005:13).
MANCOSA - 17
Human Resource
The State
Employers and
employer Labour and
organisations Trade Unions
It is important to realize that the state plays a less than equal role in the relationship, except
when it is the employer itself. The primary focus of the employment and labour relationship
is therefore the relationship between employer and employee, with the state filling a
secondary or supportive role.
The labour relationship is a dynamic one, as the interactions between parties often occur in a
turbulent environment. The secondary employment relationship is a facilitative relationship
in which the state provides the framework for conducting the primary employment
relationship. The state establishes the rules and regulations governing the interactions
between employee and employer. The degree to which the state intervenes in the primary
employment relationship ranges along a continuum from minimal to maximal intervention.
MANCOSA - 17
Human Resource
The degree of state intervention is an extension of the prevailing system of government and
its socio-economic policies.
Bendix (2000:16) points out that in the employment relationship there is continuum between
conflict and co-operation, each governed by its own power relations and processes.
CONFLICT
CO-OPERATION
No or little Increasing
trust trust
INSTITUTIONALISATION PARTICIPATION
OF CONFLICT
CO - DECISIONMAKING
MANCOSA - 17
Human Resource
MANCOSA - 17
Human Resource
Leadership
Strong leadership is increasing in importance as an ingredient for a successful
organisation. The age-old debate regarding the interchangeability of the terms
“management” and “leadership” continues unabated. However, while all leaders are
managers, it does not necessarily mean that all managers are leaders. What distinguishes a
leader from a leader from a manager is that leaders secure the co-operation of their
followers. Thus, a positive labour relationship is dependent on the ability of an
organisation’s leadership to create a harmonious, productive and sound working
environment (Venter, 2004: 18).
Communication structures
Effective labour relations obviously depend on positive communication. Organisation’s
often make the mistake of relying extensively on top-down communication. This
contradicts from the principles of participation and co-operation that form the basis of
much of the new age labour dispensation. Language increasingly becomes an issue
especially in diverse countries like South Africa, thus organisation’s need to be aware of
the language requirements of their workforces and to adjust their communications
policies accordingly (Venter, 2004:19).
MANCOSA - 17
Human Resource
also another sensitive matter to be considered (Grobler, Warnich, Carrell, Elbert and
Hatfield, 2002:45). Finally, sight, hearing, physical, psychological, or other disabilities
need to be considered.
These are:
Government policy
Inflation and unemployment
Globalisation and retaining the competitive edge
Technology
MANCOSA - 17
Human Resource
?
9.6 Summary
THINK
This section POINT
focused on Human Resource Management and Employment Relations. In doing
so the nature of the subject has been examined and it has been established that employment
The Changing
relations face of
is a “living” theofemployment
field relationship
study that evolves around(Venter, 2003:525)
and is played out daily in workplaces
Thethe
around world
relationship between the employer and employee will move away from what can be
loosely described as a ‘master-servant’ relationship in which employees are subservient
to the employer. Instead, alliances will be formed between providers of labour and
suppliers of work. Within these alliances the parties will interact on an equal contractual
footing.
The role of trade unions will become increasingly redundant as the suppliers of labour
and employers increasingly negotiate on a contractually equal footing.
The roles of the lower to middle management tiers in organizations will increasingly
become redundant as employees are given increased autonomy and control.
Work itself will be less rigidly governed by rules and regulations.
There will be less commitment and loyalty and a higher turnover of contingent and
contract workers.
MANCOSA - 17
Human Resource
SECTION 10
CAREER MANAGEMENT
MANCOSA - 17
Human Resource
CONTENTS
Learning Outcomes
Reading
10.1 Introduction
10.7 Summary
MANCOSA - 17
Human Resource
LEARNING OUTCOMES
The overall outcome for this section is that, on its completion, the student should be able to
demonstrate a comprehensive understanding of career management. This overall outcome
will be achieved through the student’s mastery of the following specific outcomes:
MANCOSA - 17
Human Resource
READING
Prescribed Reading:
Prescribed Reading:
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M. (2006) Human
Resource Management: Gaining a Competitive Advantage 5th Ed. Boston:
Irwin McGraw-Hill. pp 380-420
Nel, P.S., Van Dyk, P.S., Haasbroek, G.D., Schultz, H.B, Sono, T. and
Werner, A. (2004) Human Resource Management 6th Ed. Cape Town:
Oxford. pp 424-467
Recommended Reading:
Books
Carrell, M.R., Elbert, N.F., Hatfield, R.D., Grobler, P.A., Marx, M. & Van der
Schyf, S. (1997) Human Resource Management in South Africa. pp 344 – 366.
Ivancevich, J.M. (1998) Human Resource Management 7th Ed. Boston: Irwin
McGraw-Hill. pp 483 – 515.
MANCOSA - 18
Human Resource
Journals
MANCOSA - 18
Human Resource
10.1 Introduction
This, the final section of the HRM module guide, focuses on Career Management. In so
doing, the following will be examined:
The Career in the twenty-first century
The importance of career management
Career stages
Career planning
Career development
Graham & Bennett (cited in Nel et al, 2004) define the concept of a career as “a series of
jobs that follow a hierarchy of levels or degrees of difficulty, responsibility and status
” (p 500).
READING ACTIVITY
Before reading the two journal articles listed below, answer the following
question.
1. In your opinion how does the ‘career of today’ differ from the ‘career of 30
years ago’?
Now read the following two journal articles and answer the question which
follows.
Ettorre, B. (1996) ‘A Conversation with Charles Handy on the Future of
Work and an End to the ‘Century of the Organization’. Organizational
Dynamics. Summer, 25 (1), pp 15 – 27.
Hardijzer, C. (1999) ‘Careers: Treading a Tricky Path Within the Changing
World of Work’. People Dynamics. November – December, pp 42 – 46.
2. According to Handy (cited in Ettorre, 1996) and Hardijzer (1999), what does
the career of today (and the near future) comprise?
MANCOSA - 18
Human Resource
The articles of Ettorre (1996) and Hardijzer (1999) outline the nature of the ‘career’ at the
beginning of the twenty-first century.
Ettorre (1996) presents a conversation with the management philosopher Charles Handy
regarding his views on the future of work and the organisation. In his discussion with Ettorre
(1996), Handy asserts that in the near future he sees “…. a withering of the ‘employment
organization’….a lot of scripts will need to be rewritten, including the script that includes
job security in a corporation followed by a comfortable retirement. A lot of us will become
‘portfolio workers’ – selling our skills to a variety of clients…and all of us will be looking
beyond work to find meaning and identity” (Handy cited in Ettorre, 1996: 16). Handy argues
that the organisation of the future will be ‘Athenian’ in nature which focuses on teamwork
and expertise in the solving of organisational problems (Ettorre, 1996). According to Handy,
within the twenty-first century ‘Athenian’ organisations will employ half the people that
were employed by organisations in the twentieth century, and those individuals who are the
most competent “will become independent workers, selling back into the organization for the
most part, but into several organizations at the same time” (Handy cited in Ettorre, 1996:
20).
Like Handy (cited in Ettorre, 1996), Hardijzer (1999) also recognizes the dynamic nature of
the twenty-first century career. Hardijzer (1999:43) emphasises that “…in past decades,
companies played a far more prominent role in defining career options and determining the
career progress of individuals…the idea that a career lies primarily within a company is a
myth”. Hardijzer (1999:46) identifies the career of today to be ‘protean’ which refers to a
career which is “shaped more by the individual than the organisation and may be redirected
from time to time to meet the needs of the person”. Given this protean career, the challenge
for employees lies in proactively managing their volatile career path.
MANCOSA - 18
Human Resource
Career management may be defined as “the process of designing and implementing goals,
plans, and strategies that enable HR professionals and managers to satisfy workforce needs
and allow individuals to achieve their career objectives” (Carrell et al, 1997: 347).
?
Comment on Think Point
THINK POINT
The implementation of an effective career management programme could bring about a
Consider your organisaton. What benefits could result from the implementation
number of benefits for both the employer and the employee. These include:
of an effective career management programme?
The ability of the organisation to gain competitive advantage within both the local and
global context as a result of the maintenance of the organisation’s intellectual capital;
The organisation would avoid the negative effects of obsolescence;
Increased employee job satisfaction and motivation; and
Reduction in staff turnover due to satisfied employees (Nel et al, 2004:459).
A career may be viewed in terms of career stages, each of which corresponds to a particular
life stage of an individual (Ivancevich, 1998).
? THINK POINT
Consider your career thus far. Are you able to identify in the region of two to four
‘stages’ in your career?
MANCOSA - 18
Human Resource
Nel et al (2004:460) argues that all individuals experience a number of career stages, each of
which serves to address particular individual needs. The various career stages identified by
and the corresponding needs which these stages address are depicted in Figure 10.1.
NEEDS
CAREER STAGES
MANCOSA - 18
Human Resource
Career planning should be performed by both the individual and the organisation.
ACTIVITY
1.
Identify the career planning programmes which your organisation has
implemented. Comment on the effectiveness of these programmes.
Comment on Activity
Such career planning enables the organisation to not only successfully prepare for and
achieve its goals, but it also serves to ensure that individual employee’s career goals are
realistic.
MANCOSA - 18
Human Resource
Career development needs to take place in order to ensure that the goals established in career
plans may be achieved. Career development programmes may involve a wide range of
training and development interventions, such as on-the-job training, in-house training
programmes, off-site training programmes and coaching (Nel et al, 2004:463).
Given the dynamic nature of today’s career, as identified in section 10.2, career development
interventions should also focus on developing the employee’s career self-management
competence.
MANCOSA - 18
Human Resource
READING ACTIVITY
Kossek, E.E., Roberts, K., Fisher, S. & DeMarr, B. (1998) ‘Career Self-
Management: A Quasi-Experimental Assessment of the Effects of a Training
Intervention’. Personnel Psychology. Winter, 51 (4), pp 935 – 954.
MANCOSA - 18
Human Resource
The study conducted by Kossek et al (1998) found that the formal training programmes were
used by organisations in an attempt to develop career self-management skills within
employees. These training programmes involved employees in undergoing self assessments
to increase their awareness of their individual values and attitudes. The programmes also
provided the employees with information and skills to enhance their understanding of, and
commitment to career self-management.
The results of the study showed, however, that career-self management interventions did “…
influence employees’ career self management behaviours, but in the opposite direction of the
training’s intent” (Kossek et al, 1998: 946). The researchers noted that this result was
probably influenced by the fact that the concept of career self-management was “far ahead of
the reality the employees faced in the current culture and the existing human resource
systems” (Kossek et al, 1998: 948). It was emphasised that attention should be given to the
organisational culture and climate and supporting HR interventions when implementing
career self-management programmes.
10.7 Summary
This section investigated Career Management. In so doing the career in the twenty-first
century, the importance of career management to the employer and employee and the various
career stages were examined. Career planning and career development were also studied.
MANCOSA - 18
Human Resource
NOTES :
MANCOSA - 19
Human Resource
SECTION 11
BIBLIOGRAPHY
MANCOSA - 19
Human Resource
Bibliography
ASTD (2000) ‘The E List’. Training & Development. November, 54 (11), p 21.
Bellis, I. (2000) Skills Development: A Practitioner’s Guide to SAQA, the NQF and the
Skills Development Acts. Randburg: Knowledge Resources.
Bendix, S. (2000) Industrial Relations in the New South Africa. 3rd Edition. Cape Town:
Juta and Company Ltd.
Brewster, C., Dowling, T., Grobler, P., Holland, P. & Warnich, S. (2000) Contemporary
Issues in Human Resource Management. Cape Town: Oxford University Press Southern
Africa.
Burack, E.H. (1986) ‘Corporate Business and Human Resources Planning Practices:
Strategic Issues and Concerns’. Organizational Dynamics. Summer, 15 (1), pp 73 – 88.
Byars, L.L and Rue, L.W (1997). Human Resource Management. 5th Edition. Chicago:Irwin
Carrell, M.R., Elbert, N.F., Hatfield, R.D., Grobler, P.A., Marx, M. & Van der Schyf, S.
(1997) Human Resource Management in South Africa. New Jersey: Prentice-Hall Inc.
MANCOSA - 19
Human Resource
Casio, W.F. (1995). Managing Human Resources: Productivity, Quality of Work Life,
Profits. 4th Edition. New York: McGraw-Hill
Caudron, S. (1994) ‘HR Revamps Career Itineraries’. Personnel Journal. April, 73 (4), pp
64 – 76.
Christopher, D. & Bussin, M. (2000) ‘What are Remuneration Committees All About?’.
People Dynamics. July, 18 (7), pp 28 – 31.
Cline, E.B. & Seibert, P.S. (1993) ‘Help for First Time Assessors’. Training &
Development. May, 47 (5), pp 99 – 101.
Cockrum, R.B. (1982) ‘Has the Time Come for Employee Cafeteria Plans?’. Personnel
Administrator. July, 27 (7), pp 66 – 69.
Cohen, S.L. (1993) ‘The Art, Science, and Business of Programme Development’.
Training & Development. May, pp 49 – 56.
Conger, J., Finegold, D. & Lawler, E.E. (1998) ‘CEO Appraisals: Holding Corporate
Leadership Accountable’. Organizational Dynamics. Summer, 27 (1), pp 7 – 21.
De Bruin, C. (1998) ‘Get Your Equity Ducks in a Row’. People Dynamics. November –
December, 16 (11), pp 68 – 72.
MANCOSA - 19
Human Resource
Delaney, J.T. & Huselid, M.A. (1996) ‘The Impact of Human Resource Management
Practices on Perceptions of Organizational Performance’. Academy of Management
Journal. August, 39(4), pp 949 – 970.
Dumlop, J.T. (1958). Industrial Relations Systems. New York: Holt Publishers.
Du Plessis, H., Fourie, S. & Hamburg, S. (1996) ‘Foundational Learning Skills’. People
Dynamics. November – December14 (11), pp 74 – 88.
Eisenstat, R.A. (1996) ‘What Corporate Human Resources Brings to the Picnic: Four
Models for Functional Management’. Organizational Dynamics. Autumn, 25(2), pp 7-23.
Erasmus, B.J. & Van Dyk, P.S. (1999) Training Management in South Africa 2nd Ed.
Johannesburg: International Thomson Publishing.
MANCOSA - 19
Human Resource
Ettorre, B. (1996) ‘A Conversation with Charles Handy on the Future of Work and an
End to the “Century of the Organization”’. Organizational Dynamics. Summer, 25 (1),
pp 15 – 27.
Flanders, A. (1965). Industrial Relations – What is wrong with the system? A essay on its
theory and future. London: Faber and Faber.
Filipczak, B. (1996) ‘To ISD or not to ISD’. Training. March, 33 (3), pp 73 – 75.
Finnemore, M. & Van der Merwe, R. (1996) Introduction to Labour Relations in South
Africa 4th Ed. Durban: Butterworths.
Nel, P.S. & Van Dyk, P.S. (1999) Human Resource Management 2nd Ed. Johannesburg:
Thomson.
Giblin, E.J., Wiegman, G.A. & Sanfilippo, F. (1990) ‘Bringing Pay Up To Date’.
Personnel. November, 67 (11), pp 17 – 19.
Gioia, D.A. & Longenecker, C.O. (1994) ‘Delving into the Dark Side: the Politics of
Executive Appraisal’. Organizational Dynamics. Winter, 22 (3), pp 47 – 59.
Gordon, J. & Zemke, R. (2000) ‘The Attack on ISD’. Training. April, 37 (4), pp 42 – 57.
Greengard, G. & Kinnard, W. (1995) ‘The Key to Your Career Growth May Be a Job
Change’. Personnel Journal. October, 74 (10), pp 100 – 106.
MANCOSA - 19
Human Resource
Grobler, P., Warnich, S., Carrel, M.,Elbert, N. and Hatfield, R. (2002). Human Resource
Management in South Africa. 2nd Edition. London: Thomson Learning.
Grote, D. & Wimberley, J. (1993) ‘Peer Review’. Training. March, 30, pp 51 – 52.
Hall, D.T. & Moss, J.E. (1998) ‘The New Protean Career Contract: Helping
Organizations and Employees Adapt’. Organizational Dynamics. Winter, 26 (3), pp 22 - 38
Hardijzer, C. (1999) ‘Careers: Treading a Tricky Path within the Changing World of
Work’. People Dynamics. November – December, 17 (11), pp 42 – 46.
Harvard, M. (1999) ‘Skills Planning Can Get You Back 30% of Your Skills Levy’. People
Dynamics. April, 18 (4), pp 42 – 43.
Hodgetts, R.M., Luthans, F. & Slocum, J.W. (1999) ‘Strategy and HRM Initiatives for the
‘00s: Environment Redefining Roles and Boundaries, Linking Competencies &
Resources’. Organizational Dynamics. Autumn, pp 7 – 18.
Hosking, A. (2000) ‘HR Master Class with Dave Ulrich’. People Dynamics. August, 18
(8), pp 32 – 36.
MANCOSA - 19
Human Resource
Ivancevich, J.M. (1998) Human Resource Management 7th Ed. Boston: Irwin McGraw-
Hill.
Joinson, C. (2001) ‘Making Sure Employees Measure Up’. HR Magazine. March, 46 (3),
pp 36 – 50.
Kaplan, R.E. (1993) ‘360 Degree Feedback Plus: Boosting the Power of Co-Worker
Rating for Executives’. Human Resource Management. Fall, pp299 –315.
Kaplan, R.S. & Norton, D.P. (1996) ‘Using the Balanced Scorecard as a Strategic
Management System’. Harvard Business Review. January – February, pp 76 – 85.
Khoza, K. (2000) ‘Training Needs Analysis Under the Microscope’. People Dynamics.
September, 18 (9), pp 40 – 43.
MANCOSA - 19
Human Resource
Kossek, E.E., Roberts, K., Fisher, S. & DeMarr, B. (1998) ‘Career Self-Management: A
Quasi-Experimental Assessment of the Effects of a Training Intervention’. Personnel
Psychology. Winter, 51 (4), pp 935 – 954.
Koziel, M.J. (2000) ‘Giving and Receiving Performance Evaluations’. The CPA Journal.
December, 70 (12), pp 22 – 27.
Milliman, J.F., Zawacki, R.A., Norman, C., Powell, L. & Kirksey, J. (1994) ‘Companies
Evaluate Employees From All Perspectives’. Personnel Journal. November, 73 (11), pp
99 – 104.
Murphy, K.J. (1993) ‘Performance Measurement & Appraisal: Merck Tries to Motivate
Managers to do it Right’. Employment Relations Today. Spring, 20, pp 47.
Nadler, D.A. & Tushman, M. (1999) ‘The Organization of the Future: Strategic
Imperatives and Core Competencies for the 21st Century’. Organizational Dynamics.
July, 27 (1), pp 45 – 58.
Nel, P.S., Swanepoel, B.J., Kirsten, M. Erasmus, B.J and Tsabadi, M.J. (2005) South
African Employment Relations: Theory and Practice 5 th Edition. Pretoria: Van Schaik
Publishers.
Nellis, S. & Schuler, R.S. (1994) ‘AT & T Global Business Communication Systems:
Linking HR with Business Strategy’. Organizational Dynamics. Winter, 22 (3), pp 59 –
73.
Noe, R.A., Hollenbeck, J.R., Gerhart, B. & Wright, P.M. (2003) Human Resource
Management: Gaining a Competitive Advantage 4th Ed. Boston: Irwin McGraw-Hill.
MANCOSA - 19
Human Resource
Porter, M.E. (1979) ‘How Competitive Forces Shape Strategy’. Harvard Business
Review. March-April, pp 137 – 145.
Porter, M.E. (1980) Competitive Strategy: Techniques for Analyzing Industries &
Competitors. New York: Free Press.
Porter, M.E. (1996) ‘What is Strategy?’. Harvard Business Review. Nov-Dec, pp 61 – 78.
Robb, N. (1998) ‘No Absolute Right to Bargain’. People Dynamics. August, 16 (8), pp 54
– 55.
RSA (1993) ‘The Occupational Health and Safety Act, No 85 of 1993’. Government
Gazette No. 14918. Pretoria: Government Printer.
MANCOSA - 19
Human Resource
RSA (1995) ‘The Labour Relations Act, No 66 of 1995’. Government Gazette No 16861.
Pretoria: Government Printer.
RSA (1998a) ‘Employment Equity Act, No. 55 of 1998. Government Gazette No. 19370.
Pretoria: Government Printer.
RSA (1998b) ‘Skills Development Act, No. 97 of 1998’. Government Gazette No. 19420.
Pretoria: Government Printer.
RSA (2001) ‘Unemployment Insurance Bill’. Government Gazette No. 20952. Pretoria:
Government Printer.
RSA (2001b) ‘Pension Funds Second Amendment Bill, 2001’. Government Gazette No.
22021. Pretoria: Government Printer.
Ryland, E.K. & Rosen, B. (1988) ‘Attracting Job Applicants with Flexible Benefits’.
Personnel. March, pp 71 – 73.
Salamon, M. (1988). Industrial Relations Theory and Practice 3rd Edition. Hertfordshire:
Prentice Hall.
Schuler, R.S. & Walker, J.W. (1990) ‘Human Resources Strategy: Focusing on Issues
and Actions’. Organizational Dynamics. Summer, 19 (1), pp 4 – 20.
MANCOSA - 20
Human Resource
Sunoo, B.P. (1996) ‘Tie Merit Increases to Goal-Setting and Employer Objectives’.
Personnel Journal. November, 75 (11), pp 109 – 111.
Swanepoel, B.J., Slabbert, J.A., Erasmus, B.J. & Brink, M. (1999) The Management of
Employment Relations. Johannesburg: Butterworths.
Taylor, R.L. & Zawacki, R.A. (1984) ‘Trends in Performance Appraisal: Guidelines for
Managers’. Personnel Administrator. March, 29 (3), pp 71 – 80.
Ulrich, D. (1992) ‘Strategic and Human Resource Planning: Linking Customers &
Employees’. Organizational Dynamics. 15 (2), pp 47 – 63.
Ulrich, D. (1998) ‘A New Mandate for Human Resources’. Harvard Business Review.
Jan – Feb, pp 124 – 134.
MANCOSA - 20
Human Resource
Venter, R. (2004). Labour Relations in South Africa (Revised Edition). Cape Town:
Oxford University Press.
Viedge, C. & Conidaris, C. (2000) ‘The Magic of the Balanced Scorecard’. People
Dynamics. July 18 (7), pp 38 – 43.
Walter, I.S. (1993) ‘Incentive Compensation Must Create Shareholder Value’. Human
Resource Management. April, pp 12 – 15.
Ward, J. (1998) ‘Recruitment: The Bottom Line’. People Dynamics. September, 16 (9),
pp 16 – 23.
Werther, W.B and Davis, K.D. (1993) Human Resources and Personnel Management: 4th
Edition. New York: McGraw-Hill.
Williams, C. (1996) ‘Some Suggestions for Staff Selection’. Human Resource Management.
July, pp 27 – 30.
Wolmarans, P. (1996) ‘Co-operation Under the New LRA Essential’. Human Resource
Management. March, 12 (2), pp 27 – 34.
Wright, P., Kroll, M. and Parnell, J. (1996). Strategic Management - Concepts and Cases
(International Edition). New Jersey: Prentice Hall.
MANCOSA - 20