Human capital/Human resources Flashcards
Human resource activities
-manpower planning
-recruitment
-selection
-employee contracts
-placement
-induction
-remuneration
-training
-evaluation
-retention
Human resource activities
-manpower planning
-recruitment
-selection
-employee contracts
-placement
-induction
-remuneration
-training
-evaluation
-retention
-manpower planning
Manpower planning is a prerequisite to the selection and recruitment procedure.
The purpose of manpower planning is to determine:
How many employees the business needs?
What skills these employees must have?
When will these employees be needed?
job analysis
Job analysis consists off job description and Job specification. Job description looks at the title and duties to be performed in the job while job specification focuses on the skills, knowledge, experience and education needed.
what does job analysis consist of
-job description
-job specification
recruitment
The main focus of recruitment process is to attract the most competent talent. The task of the recruitment agent is to determine the most effective communication channels to be used for the recruitment message.
name the 2 types of recruitmet processes
internal
external
internal recruitment
Internal recruitment is the process of promoting an existing employee in the business.
external recruitment
If it is not possible to recruit employees within the business the business has to recruit externally.
what are ways a business could find out about internal recruitment
-Word of mouth
-Business newsletter/circulars
-Internal/management referrals
-Notice board of the business
-Internal bulletins
-Recommendation of current employees
-Head hunting within the business/organisational databaseails/Intranet/web sites to staff
SOURCES OF EXTERNAL RECRUITMENT
-Recruitment agencies
-Bill boards
-Printed media, e.g. newspapers/flyers
-Electronic media, e.g. radio/TV
-Social media/Social networks/Internet/Business websites
-Recruitment agencies
-Walk-ins
-Head hunting
-Professional associations
-Networking
-Educational/Training institutions
-Posters/Bill boards just outside the business
Advantages of Internal Recruitment
-Cheaper/Quicker to fill the post.
-Placement is easy, as management knows the employees’ skills/personality/ experience/strengths.
-Provides opportunities for career paths within the business.
-The employee already has an understanding of how the business operates./ Induction/Training is not always necessary.
-Reduces the chances of losing employees, as future career prospects are available.
-Detailed, reliable information can be obtained from the supervisors/Employee records.
advantages of external recruitment
-New candidates bring new talents/ideas/experiences/skills into the business.
-There is a larger pool of candidates to choose from.
-There is a better chance of getting a suitable candidate with the required skills/ qualifications/ competencies who do not need much training/ development which reduce costs.
-It may help the business to meet affirmative action and BBBEE targets.
-Minimises unhappiness/conflict amongst current employees who may have applied for the post.
SELECTION: what is the selection procedure
1.Receive documentation, e.g. application forms and sort it according to the criteria of the job
2.Evaluate CVs and create a shortlist/Screen the applicants
3.Check information in the CVs and contact references.
4. Conduct preliminary interviews to identify applicants who are not suitable for the job, although they meet all requirements.
5.Assess/Test candidates who have applied for senior positions/to ensure the best candidate is chosen
6.Conduct interviews with shortlisted candidates.
7.Offer employment in writing to the selected candidate(s).
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 interests of both the individual and the business.
Induction:An effective induction program should include:
-A written copy of the business’ policies and procedures.
-organogram/organisational chart.
-A face-to-face introduction to the manager and staff.
-A tour of the facilities.
-Precise instructions outlining performance.
-Allocating a “buddy or mentor”.
The advantages of a well-structured induction program:
-Reduces stress and anxiety
-Ensures employee starts with correct information.
-Prevents wasting time and money.
-Understand business culture.
-Retention of staff is higher.
Remuneration
Remuneration → ‘payment for work done’
remuneration types
-Salaries- a fixed amount paid at the end of the month
-Wages- fixed sum calculated on the
-Commission- is form of remuneration used to motivate employees to deliver more.
-Profit share- direct and indirect incentive offered to employees and it depends on the companies profitability.
-Share options- the right to buy a certain number of shares at a fixed price at some period in the future.
what are the types of remuneration that an employee may receive
-commission
incentives
deductions
bonus
Commission-
is form of remuneration used to motivate employees to deliver more.
Incentives-
a payment to stimulate greater output
Deductions-
amount of money taken from taxable income.
Bonus-
A sum of money added to a persons wages as a reward for good performance.
Methods of structuring salaries
-Cost plus Benefits
-Cost to Company
-Cost to Company
The employer offers the employee a salary, but thereafter no additional contributions will be made by the employer.
cost plus benefits
-The business pays a basic salary and then makes additional contributions towards certain fringe benefits.
-Pension, Medical aid, Travel allowance, Housing, Meals, Accommodation etc.
Training and skills development
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 etc.
Designing and implementing an effective training and skills development program.
1.Identify the skills gap.
2.Consider the training resources available.
3.Design the training program by describing the learning outcomes.
4.Implementing the programme.
5.Evaluating 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. This is done by means of a Performance Appraisal.
2.8 Retention
Some of the reasons for employees leaving a business include:
-A better salary.
-The employee is unhappy.
-The employee does not get along with colleagues.
-No job satisfaction.
-A lack of opportunities to grow and develop.
-Unhappy with the working conditions.
-Travelling time to work is unacceptable.
-Health reasons or people retiring.
-A spouse is transferred to another town.
-Lack of balance between work and personal life.
Consequences of a high turnover:
-Reduced productivity levels.
-An additional work burden.
-Low morale.
-A negative public perception.
-More money and time needed.
Constitution
-Promulgated on 18 December 1996 and came to effect on 4 February 1997
-Chapter one emphasis is on human diginity, human rights and the importance of citizenship - helps to redress inequalities of the past
-Includes the BIll of Rights (very detailed and specific rights and resonsibilities of all citizens of the country ) - Bill of Rights has a
Limitation clause - limites the rights, as different peoples rights may conflict
Constitution
-Promulgated on 18 December 1996 and came to effect on 4 February 1997
-Chapter one emphasis is on human diginity, human rights and the importance of citizenship - helps to redress inequalities of the past
-Includes the BIll of Rights (very detailed and specific rights and resonsibilities of all citizens of the country ) - Bill of Rights has a
Limitation clause - limites the rights, as different peoples rights may conflict
Labor relations
-Enforces fundamental rights relating to labour issues that are guaranteed in the Constitution
-LRA provides the basic legal framework for the South African labour relations system
-Promotes effective resolution of labour disputes through employee participation in decision-making in the workplace
positive Implications of labour relations
-Ensures that international labour standards are applied in the South African context
-Protects the basic rights of employees and employers in the workplace
-Provides guidelines on how labour disputes and disciplinary issues should be handled
negative Implications of labour relations
-Trade get caught up with office politics and other issues under the pretext of implementing the LRA
-Can be very costly for small businesses to employ services of a labour consultant
discipline
-Ensures the correct behavior by all parties
-The discipline implemented needs to fit the infringement
-If the problem is not fixed after the ‘softest’ disciplinary measure, more serious disciplinary action may be taken - AKA progressive approach to discipline
STEPS TO CORRECT BEHAVIOR
=Coaching and counselling
=Correction
Coaching and counselling
- establish what can be done; A plan of action; Employee is made aware that more serious steps may be instigated should their behavior not change
Correction -
refers to a more formal approach to intervention e.g warnings, suspension, demotion, dismissal
Disciplinary Policy
-Ensures that the employees meet the required work standards and that they act in a manner that promotes improved performance
-Provides guidelines and informs the employee on what is acceptable behavior and what the expected standards are that should be met, as well as the consequences prescribed with the unacceptable behavior
Grievance Procedure
-Ensures that the employees meet the required work standards and that they act in a manner that promotes improved performance
-Allows the employee the opportunity to resolve a grievance related to their employment by communicating about the problems via a predetermined procedure and structure
when can dismissal e considered fair
Dismissal due to incapacity
Dismissal due to Misconduct
Dismissal due to operational reasons
Dismissal due to incapacity
poor work performance
poor health
poor health
-Employer should modify or adapt employees task s - enables employee to meet standards
-Extended unpaid leave should be considered
-A transfer, to another more suitable position should be considered before dismissal
-Preventing the employee from meeting the required standards
Poor work performance
-Includes incomplete/inaccurate/poor standard work
-Employer has to provide proof that the employee was given sufficient support
-Other avenues need to be considered
Substantive fairness for Incapacity or Misconduct:
-The employee contravened a rule/standard.
-The rule/standard was a valid/reasonable.
-The employee was aware of the rule/standard.
-The rule/standard is consistently applied.
-The appropriate sanction is implemented
Dismissal due to incapacity
Poor work performance
=Includes incomplete/inaccurate/poor standard work
=Employer has to provide proof that the employee was given sufficient support
=Other avenues need to be considered
Procedural fairness for Incapacity and/or Misconduct:
=The complaint put in writing and investigated.
=Accused advised of the full nature and details of the charge/s against him/her.
=Details of the disciplinary hearing given to the accused in writing.
=Accused given reasonable time to prepare.
=The accused entitled to an interpreter.
=Complainant presents his case first. Accused is given an opportunity to cross-examine witnesses.
=Accused then presents his defence. =Complainant can cross-examine the accused’s witnesses.
=Chairperson of the Disciplinary Hearing decides on guilt or innocence.
=If “guilty”, Chairperson considers aggravating or mitigating circumstances.
=Chairperson advises of rights to appeal to the CCMA.
Dismissal due to operational reasons .Retrenchments implemented for:
-Restructuring
-Economic reasons
-Technological reasons
-Business is closing.
For retrenchments to be procedurally fair:
-Steps taken to prevent/minimise retrenchments.
-Reasons for retrenchments – Were alternatives were considered?
-Consultation with the affected employees and their representatives.
-Criteria used to identify employees for retrenchment
-Notice periods given to employees
-Offers of severance pay
-Offers of re-employment
Unfair treatment
=Unfair allocation of benefits
=Unreasonably long periods of probation
=Unfair discrimination
=Unfair suspension
=Failing to re-employ
=Unfair treatment after whistle blowing
Unfair dismissal
=Participated in trade union or workplace forums
=Taking part in a protected strike
=Due to pregnancy
=Ends contract without notice
=Arbitirary factors e.h race, age
=Constructive dismissal - employer makes work environment extremely difficult to work
Remedies for unfair dismissal may include
=Re-employment
=Compensation (the maximum compensation - 24 months’ salary)
=Combination of the two
Industrial relations
Collective bargaining
The relationship between the employer,employee, trade unions,government
Aim = establish industrial peace
Industrial action
Refers to steps that workers take to enforce their demands if the collective bargaining process fails to meet their demands (strikes, go-slows, work to rule, picketing
Different types of strikes and other industrial action:
-Strike
-Go-slow
-Work-to-rule
-Intermittent strikes
-Overtime bans
-Picketing
-Secondary/sympathy strike action
Reasons for industrial action include:
=Remuneration issues
=To have a trade union recognised
=If the employer made unilateral changes to working conditions
Protected Strikes:
=Before the strike - issue must be referred to CCMA, a Bargaining or a Statutory council
=The CCMA or council has 30 days to resolve the issue -if not, certificate is issued
=In a private sector- 48 hour notice is needed
=In a public sector - 7 days notice is needed
The benefits from the employee’s perspective if it is a protected strike:
=Employees know they cannot be dismissed
=Employers cannot get a court interdict to stop the strike
=Employers are not allowed to seek damages because of loss of production
=Employers must provide food and accomodation if it part of the employees remuneration
When is it not a protected strike?:
=If the correct procedure has not been followed
=If there is a collective Agreement in place
=If workers are engaged in a essential service
What is a lock-out?:
The employer prevents employees from entering the workplace in an attempt to force them to accept the employers demands
Dispute-resolution mechanisms
=bargaining councils
=collective bargaining
=statutory council
=workplace forums
=trade unions
=CCMA
Workplace forums:
May be etsablished if the businesses employs 100 or more employees. Employees and employers can consult with one another and make joint decisions on certain issues
Functions of a Bargaining council:
=Negotiate;enforce collective agreements
=Design; submit proposals for policies on that sector
=Prevent;resolve labour disputes
=Establish training and education schemes
Collective bargaining:
Refers to the process where the employer and employees(represented by the trade union - gives employees bargaining power) discuss issues of concern in order to recocile their goals and reach an agreement on these topics
Statutory council:
Agreements reached at statutory council cannot be extended to other parties in the sector without the approval form Minister of Labour
Biggest Trade Union bodies in SA:
=The Congress of South African Trade Unions
=The Federation of Unions of South Africa
=The National Council of Trade Unions
Commission for Conciliation, Mediation and Arbitration (CCMA)
=Independent dispute-resolution body
Settles disputes to prevent labour unrest
=Conciliation: comissioner meets employer -explore ways to settle
=Mediation: comissioner makes recommendation
=Arbitration:comissioner makes a decision that is legally binding
=Should a party feel there is a flaw, the party can refer the matter to Labour Court within 6 weeks
Trade Unions
=Refers to a group of workers organising themselves in a collective organisation with the aim to engage in collective bargaining with the employer and/or employer organisations
Roles and functions:
=Ensure industrial peace
=Addres issues e.g remuneration
=Ensure fair treatment of workers
Biggest Trade Union bodies in SA:
=The Congress of South African Trade Unions
=The Federation of Unions of South Africa
=The National Council of Trade Unions
D. NEDLAC(National Economic Development and Labour Council)
Is the role player in the relationship between business, trade unions, government and community groups with the aim to:
=Make economic decision-making more inclusive
=Promote the goals of social equity and economic growth
- Employment Equity(EE) Act 55 of 1998.Purpose of the Act:
Redress the inequalities of the past through Affirmative Action (AA)
- Employment Equity(EE) Act 55 of 1998.Affirmative Action:
Designated groups who were previously marginalised in the workplace, now get preferential treatment
Employment Equity(EE) Act 55 of 1998.Advantages of EE Act:
Past is corrected
More diverse workforce
Employment Equity(EE) Act 55 of 1998. disdvantages of EE Act:
-Additional workload on the business
-People who do not have the necessary skills are promoted; hampers productivity
-May lead to resentment and conflict in the workplace
-Brain drain
4.Black Economic Empowerment(BEE) and Broad Black Economic Empowerment Act 53 of 2003(BBBEE)Purpose of the Act:
Aims to redress imbalances of the past by bringing the black majority of the country into the economic mainstream
4.Black Economic Empowerment(BEE) and Broad Black Economic Empowerment Act 53 of 2003(BBBEE). Five elements of the BBBEE scorecard:
=Black ownership
=Management level in the businesses
=Skills development
=Black-owned businesses as their suppliers
=Socio-economic development
4.Black Economic Empowerment(BEE) and Broad Black Economic Empowerment Act 53 of 2003(BBBEE). Advantages of the BBBEE Act:
=Improved standard of living
=Creates real opportunities
=Increased skill development
4.Black Economic Empowerment(BEE) and Broad Black Economic Empowerment Act 53 of 2003(BBBEE). Disadvantages of the BBBEE Act::
=Majority have not benefited
=Limited experience in top management level - difficult to make changes
=Window-dressing
Skills Development Act 97 of 1998. Purpose of the Act:
To ensure South Africans develops the skills needed for economic growth, social growth and sustainable job creation
Skills Development Act 97 of 1998. National Skills Authority
was established to draft and implement the National Skills Development Strategy and to ensure the Sector Education and Training Authorties help businesses make skills development a reality
Skills Development Act 97 of 1998. Aims of the Skills development Act:
=Increase employment opportunities
=Improve qualification and skills
=To ensure economic development is achieved
=Better standards of living
=Introduce learnerships and skills programmes
To promote entrepreneurship
Improve skills levy
Skills development levy:
Businesses pay -
this levy is equal to 1% of the total payroll. When training takes place,some of this money can be claimed back to cover the training expenses
Purpose of SETAs:
=Works out Sector Skills Plans and implement the plan to make sure skills are developed, they do this by:
=Watching over education and training in the sector
=Approving Workplace Skills Plans and Annual Training Reports
=Ensuring learnerships are established
=Availing funds
Advantages of the Skills Development and Skills Development Levy Act:
=Training opportunities
=Better standard of living
=Improved competitive advantage
=Funding for training is obtained
=20% may be claimed back
Disadvantages of the Skills Development and Skills Development Levy Act:
=Additional expense for the business
=Not always effective
=Claim back amount has reduced from 50% to 20%
=Training has a short term negative impact on productivity
6.Basic Conditions of Employment Act 75 of 1997 (BCEA). Purpose of the Act:
Ensures that employees are treated in a fair manner in the workplace - promotes economic development
6.Basic Conditions of Employment Act 75 of 1997 (BCEA). Issues covered in the Act:
=Working hours and overtime: No employee may work more than 45 hours a day; employees must be paid one ½ times their salary for overtime or granted time off
=Deductions: Employer may not deduct from employees’ salary without their acknowledgment
=Public holidays: employee receives double pay/ time off as compensation
=Leave:
- Sick leave- 36 per 3-year cycle
-Annual leave 21 days of consecutive leave
-Maternity at least 4 months consecutive leave, does not need to be paid.
Maternity leave can be given to people who have adopted kids younger than 2 years -family responsibility leave: 3 days
- special leave , special condition :not in your control
= only 3 hours of overtime per week, and no more than 10 hours a week
