Human Resources

• Human capital


  Employees are regarded as an asset with certain skills, knowledge, experience, characteristics and attitudes which are used in the business to reach their objectives
• Manpower planning


  1. Determine number of employees

  2. Determine range of skills required

  3. Determine timeframe of employment
• Accurate manpower planning requires

  • Job analysis
  • Job description
  • Job specification
• Job analysis


  Performed to determine all the tasks and responsibilities associated with each job in the organisation
• Job description


  Summary of the job, duties and working conditions associated with the job and the degree of supervision required to perform the job
• Job specification


  Interprets the job description into qualifications, skills and experience necessary for the employee to do the job
• Internal recruitment advantages


  • Employee morale is improved
  • Cost effective
  • Employee is known to the business
• External recruitment advantages


  • New ideas
  • Affirmative action employments
  • Insight on competitors
  • No infighting occurs
• Selection


  1. Receive application forms, CVs etc

  2. Evaluate all applications and CVs

  3. Compile a shortlist for screening

  4. Background and reference check is done

  5. Interviews are conducted

  6. Undergo tests: work sample/medical etc

  7. Rank candidates in order of preference

  8. Acceptance of employment offer then contract is signed
• Placement


  • The employee is usually placed in the position for which he/she applied
  • Correct placement ensures the employee is optimally utilised in the best interest of both the individual and the business
• Induction


  1. Provide a written copy of the business' policies and procedures

  2. Provide an organisational chart

  3. Introduce the manager and staff

  4. Provide a tour of the facilities

  5. Give precise instructions outlining performance

  6. Allocate a "buddy or mentor"
• Advantages of a well-structured induction program

  • Reduces stress & anxiety
  • Ensures employee starts with correct information
  • Prevents wasting time and money
  • Understand business culture
  • Retention of staff is higher
• Remuneration


  • Salaries
  • 13th cheque
  • Wages
  • Profit share
  • Commission
  • Share options
  • Incentives
  • Deductions
  • Bonus
• Cost plus benefits


  The business pays a basic salary and then makes additional contributions towards certain fringe benefits
• Cost to company


  The employer offers the employee a salary, but thereafter no additional contributions will be made by the employer
• Training


  The process of ensuring that employees have the specific skills needed to perform the job
• Skills development


  Targets a broader range of skills or even attitudes that are not job specific e.g. time management skills, communication skills, creative thinking skills
• Designing & implementing an effective training & skills development programme


  1. Identify the skills gap

  2. Consider the training resources available

  3. Design the training program by describing the learning outcomes

  4. Implement the programme

  5. Evaluate the success of the programme
• Employee evaluation


  The productivity and efficiency of each employee must regularly be rated against performance targets to determine the degree to which performance targets are met or even exceeded
• Reasons for employees leaving the business

  • A better salary
  • The employee is unhappy
  • The employee does not get along with colleagues
  • No job satisfaction
  • A lack of opportunities to grow & develop
  • Unhappy with the working conditions
• Consequences of a high turnover

  • Reduced productivity levels
  • An additional work burden
  • Low morale
  • A negative public perception
  • More money & time needed
• Legislation impacting on human capital

  • Constitution of South Africa
  • Labour Relations Act
  • Employment Equity Act
  • Broad Based Black Economic Empowerment
  • Skills Development Act
  • Basic Conditions of Employment Act
• Constitution of South Africa

  It is the fundamental law of South Africa and no other law or contract may supersede the Constitution
• Rights offered in the Constitution's Bill of Rights


  • Just administrative action
  • Citizenship and freedom of movement
  • Political rights
  • Housing, food, water, healthcare & social security
  • Children
  • Education
  • Not be unfairly discriminated against
  • Freedom of trade, occupation & profession
  • Freedom of association
  • Assemble peacefully, demonstrate & protest
  • Environment
• Limitation clause


  The rights are not absolute and may under certain circumstances be limited. The purpose is to redress inequalities of the past in the workplace
• Labour Relations Act


  Applies to all employers, employers' organisations, employees and trade unions, but does not apply to members of the National Defence Force, National Intelligence Agency & the South African Secret Service
• Main aims of the Labour Relations Act

  • Enforce the fundamental rights relating to labour issues that are guaranteed in the Constitution
  • Promote economic development, labour peace, social justice and democracy in the workplace by providing a framework for collective bargaining to solve labour disputes
• Implications of the Labour Relations Act

  • Ensures international labour standards are applied in SA
  • Gives clear guidelines on how labour disputes can be resolved
  • Trade unions have a lot of power in South Africa, they are meant to protect the rights of employees and not become involved in politics under the pretext of implementing the LRA
• Purpose of discipline


  Not to punish, but rather to ensure the correct behaviour immediately and also to prevent it from happening in future
• Disciplinary policy


  Informs the employee what is acceptable behaviour, expected standards and consequences
• Grievance procedure


  Allows the employee the opportunity to resolve a grievance related to his employment
• Steps to correct behaviour

  1. Coaching & counselling

  2. A plan of action follows to ensure compliance

  3. If behaviour does not change, more serious steps may be instigated

  4. Correction refers to a more formal approach to intervention and may include verbal warnings, written warnings, suspension, demotion or even dismissal
• There is a common misconception that the manager always has to issue three warnings before an employee may be dismissed
• Reasons for dismissal


  • Dismissal due to incapacity
  • Dismissal based on misconduct
  • Dismissal due to operational reasons
• Incapacity


  • Poor work performance
  • Poor health
• Forms of misconduct


  • Abuse or unauthorised possession of company property
  • Actions that are a threat to the safety of the employee or others
  • Being under the influence of alcohol or any illegal substance
  • Bribery and corruption
  • Failure to adhere to rules
  • Fighting
  • Illegal industrial action
• Substantive fairness for incapacity or misconduct


  • The employee contravened a rule/standard
  • The rule/standard was valid/reasonable
  • The employee was aware of the rule/standard
  • The rule/standard is consistently applied
  • The appropriate sanction is implemented
• Procedural fairness for incapacity and/or misconduct


  1. The complaint put in writing and investigated

  2. Accused advised of the full nature and details of the charge/s against him/her

  3. Details of the disciplinary hearing given to the accused in writing

  4. Accused given reasonable time to prepare

  5. The accused entitled to an interpreter

  6. Complainant present his case first. Accused is given an opportunity to cross-examine witness

  7. Accused then present his defence. Complainant can cross-examine the accused's witnesses

  8. Chairperson of the hearing makes a decision
• Reasons for disciplinary action


  • THEFT FROM THE EMPLOYEE OR OTHERS
  • BEING UNDER THE INFLUENCE OF ALCOHOL OR ANY ILLEGAL SUBSTANCE
  • BRIBERY AND CORRUPTION
  • FAILURE TO ADHERE TO RULES
  • FIGHTING
  • ILLEGAL INDUSTRIAL ACTION
• Substantive fairness for incapacity or misconduct


  • The employee contravened a rule/standard
  • The rule/standard was valid/reasonable
  • The employee was aware of the rule/standard
  • The rule/standard is consistently applied
  • The appropriate sanction is implemented