HUMAN RESOURCE FUNCTION

7. HUMAN RESOURCE FUNCTION

Learning Outcomes: After you have read this topic you should be able to:

 Explain the key concepts of human resource function  Distinguish between the primary human resource activities  To explain the process of attracting human resources with all its sub activities

7.1. INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

The management of human resources refers to the task or responsibility that is a part of every manager’s job. The human resource management function is a specialised management are similar

to marketing and production. As a business grows human resources department is essential to manage its workforce.

7.2. WHAT IS THE TASK OF THE HUMAN RESOURCE MANAGER?

The task of the human resource manager is to help other managers in the business to fully utilise the employees allocated to them. The human resource management can therefore be regarded as an aid or staff functions: in other words, it advises other line functions. Line function is usually directly involved in the pursuit of the primary objectives of the business.

The human resource manager helps other managers utilise labour in an optimal way by:  Helping them to recruit and appoint the most suitable staff  Ensuring that conditions of employment are such that staff will want to remain with the business.  Taking steps to train staff to a higher level of skill so that they can make greater contribution to

the business. These three main human resource activities are known as:

 Attracting human resources  Retaining human resources  Developing human resources

The main activities and sub-activities of human resource management

Figure 7.1

HR Manager

Attracting Human Resources

Retaining

Human Developing

 Human resource planning

Resources

Human Resources

 Recruiting

 Compensation

 Training &

 Selection

 Health & Safety

Development

 Placement  Labour Relations  Performance

 Induction Management

7.3. ATTRACTING HUMAN RESOURCES

Every business must have the necessary resource to perform its activities continuously. One of main function is to ensure a continuous flow of human resources to the business.

Attracting human resources are not simple. It involves the following important activities that must

be performed well for the process as a whole to be executed efficiently: Human resource planning – involves estimating the quantity and quality of employees who will be

required for the business in the future.

7.3.1. Job analysis

The first step in HR planning is to determine the nature of the work being done. Job analysis is the process by means of which all relevant information regarding a specific job is collected. The following questions must be asked when undertaking a job analysis:  What is the employee responsible for?  What tasks are performed?  What decisions are made?  What information is needed to enable the work to be done?

7.3.1.2. Job description

Whatever method of data collection is used for job analysis, the information is put in writing in a certain format, so that people, not involved in the job analysis, can nevertheless get thorough insight into the contents of the job.

7.3.1.3. Job specification

-To determine the type of employees needed in the business. Questions that need to be answered are: how many sales personnel are needed? Do we have to appoint administrative staff that holds

B.Com degree, or is a grade 12(matric) qualification sufficient? These questions can only be answered by looking at requirements for the various jobs.

-The list of qualifications is called a job specification and is usually complied by the HR manager concerned.

Job Analysis

(Obtaining all relevant job information)

Job Description

Job Specification

A statement containing items such as:

A statement that spells out the human

capacities necessary for the task. This  Job Title

 Place (where the task must be performed)

contains items such as:

 Training

 Job summary

 Experience

 Machinery, tools and equipment

 Judgement

 Materials and forms used

 Initiative

 Supervision provided or received

 Physical skills

 Working conditions

 Responsibilities  Risks  Communication Skills

 Emotional skills  Extraordinary demands on sensory

perception (sight, smell and hearing

Figure: Components of job Analysis

7.3.1.4. Human resource forecasting

This is to conduct forecasts of the quantity and quality of employees whom the business is going to need in the future. Factors to keep in mind during forecasting are:  Economic growth  New developments in the business  The labour Market

7.3.1.5. The human resource plan

Using the information so far, the HR manager can compile an HR plan, the step in the process. The purpose of this plan is to provide concrete guidelines and steps to management, which will indicate how the business’s short, medium and long-term human resource requirements can be provided for.

7.4 RECRUITMENT

The purpose of recruitment is to ensure that a sufficient number of applicants apply for the various jobs in the business as and when required

 Recruitment from inside- means trying as far as possible to fill vacant positions with existing staff members.

 Recruitment from outside- means looking for suitable applicants outside the business when a post becomes vacant.

 The-recruiting procedure- if a business recruits from the inside, the HR manager must ensure that an efficient HR record system exists. Such a record system should contain information on

each employee’s qualification, training and experience, as well as an assessment of achievements and interest.

Recruiting techniques

 Recruitment through advertisements  Recruitment through consultants and labour agencies  Recruitment through existing employees  Recruitment through personal approach  Recruitment through radio, T.V, and the internet  Sundry recruiting strategies

7.5 SELECTION

This can vary from a very short interview, to obtain a general impression of the applicant, to an intensive assessment process. However, this differs from business to business.

Preliminary screening-the most efficient method for undesirable candidates from potential applicants is to compare the application with the job specification

Intensive assessment- basically involves two steps, namely psychological testing and diagnostic interviewing  Psychological testing- can provide valuable information on the applicant. Usually involves a

measurement of the applicants personality, abilities and management skills  Diagnostic interview- is used to obtain information that was not highlighted in the tests or on the

application form Final selection – At this stage enough information available about the applicants to compile a

shortlist of, at most, three persons.

7.6 PLACEMENT AND INDUCTION

Once the job offer has been accepted, the new employee must report for duty as soon as possible. With the placement of the person in the job a number of outstanding matters can be finalized.

An induction programme will:  Introduce new employees

 Policy, procedures and rules  History, products and services, reputation in the market  Practical arrangements  Organisational structure

7.7. THE DEVELOPMENT OF HUMAN RESOURCES

Developing employees is one of the crucial elements of any organization that wishes to complete nationally and internationally.  Training- is a systematic and planned process to change the knowledge, skills and behaviour of

employees in such a way that business objectives are achieved. It is directed at improving the employee’s job performance.

 Education – activities directed at providing the knowledge, skills, moral values and understanding required in the normal course of life.

 Development- creating learning opportunities and making learning possible within a business. Management development should be directed at providing managers with the knowledge, skills and attitudes necessary to manage the business.

 Outcomes-based education and training- begins with intended outcomes as opposed to the inputs of traditional curriculum driven education and training. An outcome is a result in a real situation. It is based on the following:  Considers the needs of the learner  Acknowledges human diversity by taking learners’ differences into account  Democratic and participative in nature (parents and learners have an input in education)  Focuses on responsibility  Allows learners to achieve full potential

7.8 PERFORMANCE MANAGEMENT

Performance management has three purposes:  To achieve organisational goals  To develop employees  To maintain employees’ level of competence

Can be defined as the means by which managers ensure that employee’s activities and outputs are in line with the business’s goals. A performance management system consists mainly of three parts:  Determining the desired performance standards in the business  Measuring the performance by using performance appraisal  Feedback to employees on their performance

Performance Appraisals

The following criteria are used to evaluate performance appraisals:  Validity- the extent to which the performance measure assesses relevant aspects of performance

 Reliability – this refers to the consistency of performance measure  Acceptability- this refers to whether people who use the performance measure accept it.  Sensitivity- the criterion should be able to accurately reflect the difference between high and low

performers  Practicality- this criterion should be measurable and the collection of relevant data should be

easy.

7.9 REMUNERATING EMPLOYEES

The financial and non-financial extrinsic rewards provided by an employer for the time, skills and effort made by employees in fulfilling job requirements aimed at achieving business objectives.

Financial rewards consist of two categories:

1) Performance related

2) Membership related Non-financial rewards also have two categories:

1) Status rewards

2) Social rewards

Objectives of a remuneration system

The traditional objectives of a remuneration system are to attract, retain and motivate employees.  Attract the right quality of employee  Retain suitable employees  Maintain equity among employees

Remuneration policies

A remuneration policy should address the following issues:  Equity  Levels of reward  Performance related rewards  Salary structure  Market rate policy  Communication  Control  Total package

Job Evaluation

This can be defined as a process of systemically analysing jobs to determine their relative worth in

a business.  Job ranking

 Grading  Factor comparison  Points methods

Step 1: Select compensable job factors Step 2: Divide factors into degrees Step 3: Allocate weights to factors and degrees Step 4: Rate job on each factor and total points

7.10 HEALTH AND SAFETY Legislation covering health and safety in the workplace

Two specific pieces of legislation cover health and safety in South Africa, namely the Occupational Health and Safety Act (OHSA) (85 of 1993) and the Mine Health and Safety Act (29 of 1996).

Health and safety management issues

The following are important in such a policy document:  Ergonomics and workplace design  Health screening and safety auditing  Sanitation and education  Fitness programmes and recreation facilities  Work and family life interactions  Nutrition programmes  Smoking policies  Emergency readiness

7.11 LABOUR RELATIONS

Labour Relations from a business management point of view can be described as a complex system of individual and collective actions as well as formal and informal relationships existing between the state, employers, employees and related institutions concerning all aspects of the employment relationship.

A brief overview of South Africa’s statutory labour relations system Freedom of association

Workers have a right to form and join trade unions, and employers enjoy a similar right to form employers’ organizations.

Organisational rights

The LRA also provides for trade union access to the workplace. An office bearer or union official is entitled to enter an employer’s premises in order to recruit members or to communicate with trade

union members.

Bargaining Councils

Bargaining councils are bargaining and dispute resolution structures centralised at sect oral level. The powers and functions of bargaining councils include:  Conclude collective agreements  Enforce collective agreements  Prevent and resolve labour disputes  Establish and administer funds to be used for resolving disputes  Promote and establish training and education schemes  Establish and administer funds related to pension etc  Determine by collective agreement, the matters which may not be an issue in dispute for the

purpose of a strike or lock-out at workplace  Consider workplace forums or additional matters for consultation

Statutory councils

A representative trade union (or more than one, combining forces) with members, who constitute at least 30% of the employees in a sector, or one or more employer’s organizations, may apply to the registrar for the establishment of a statutory council in a sector or area.

Commission for Conciliation, Mediation and Arbitration (CCMA)

It is independent of the state, and of any political party or any other organization. Its function is to attempt to resolve, through conciliation, any disputes referred to it in terms of the LRA, to arbitrate any dispute that remains unresolved.

Labour Court and Labour appeal court

The Labour Court has authority, inherent powers and standing in relation to matters under its jurisdiction equal to those of a court of provincial division of the High Court.

Strikes and Lockouts

The LRA defines a strike as “the partial or complete concerted refusal to work. Or the retardation or obstruction of work, by persons who are or have been employed by the same employer or by different employers, for the purpose of remedying a grievance or resolving a dispute in respect of any matter of mutual interest b etween employer and employee, and every reference to ‘work’ in this definition includes overtime work, whether it is compulsory or voluntary.

Collective Agreements

The aim of collective bargaining is to reach agreements. The purpose of the LRA is to provide mechanisms through which the parties can achieve this.

Agency shop and closed shop agreements

A representative trade union whose members are in majority in a workplace may conclude with the employer an agency shop agreement requiring the employer to deduct an agreed agency shop fee A representative trade union whose members are in majority in a workplace may conclude with the employer an agency shop agreement requiring the employer to deduct an agreed agency shop fee

Workplace forums

Workplace forums are designed to facilitate a shift at the workplace, from an adversarial relationship between trade unions and employees to a joint problem-solving and participatory relationship on certain subjects.

Automatically unfair dismissals

The LRA specifically recognizes the right of an employee not to be unfairly dismissed and has introduced certain stipulations to indicate automatically unfair dismissals.

Communication: grievances and disciplinary aspects

There are various ways to enhance the quality of communication between parties in the employment relationship, including, one-to- one” chat sessions”, performance appraisals, departmental meetings etc. Two communication procedures of paramount importance are grievance and disciplinary procedures.

The grievance procedure

A grievance is an employee’s response to a real, perceived or alleged breach of the terms of the employment contract, for example, one- sided changes to the employee’s conditions of employment or being insulted by a superior.

The disciplinary procedure

Discipline can be described as action or behaviour on the part of authority (employer) in a social system aimed at stopping member behaviour that threatens to disrupt the functioning of the system.

The South African National Qualification Framework (NQF)

The South African Qualifications Authority Act (1995) was passed to provide for the development of and implementation of the NQF. The NQF is based on a credit system for achieving learning outcomes. A learning outcome is an ability developed by the learner that reflects an integration of knowledge and skill that can be transferred to different context.

Skills development legislation

The main aims of the Skills Development ACT are to:  Development workforce skills  Improve the quality of work life  Improve productivity  Promote self employment  Improve the delivery of social service  Encourage employers to give employees the opportunity to acquire skills and gain work The main aims of the Skills Development ACT are to:  Development workforce skills  Improve the quality of work life  Improve productivity  Promote self employment  Improve the delivery of social service  Encourage employers to give employees the opportunity to acquire skills and gain work

ASSESSMENT QUESTIONS:

1. Define the term HR management

2. What is the task of the human resource manager

3. Why is it important for HR manager to develop and retain employees?

4. Explain human resource forecasting

5. Discuss the NQF principles

6. Tabulate the advantages and disadvantages of recruiting from inside and outside the organisation.

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