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Chapter 8 -Human Resources (HR (Focus of the HR function (Interpretation…
Chapter 8 -Human Resources
HR
Definition
All activities and decisions that are intended to improve the effectiveness of the human resources (employees) and of the enterprise as a whole
Importance and aim
The aim is to bridge the gap between management goals and the needs of the workforce. Function s to manage the human resources in order to maximise their potential, thereby enabling the business to achieve its mission
Focus of the HR function
Interpretation of employer / employee needs
Coordintation of management and staff requirements
Implementation of the various activities of personnel management
HR Activities (1)
Selection
Initial screening
CV / job application evaluation
Receipt of the application forms / CV
Reference and background checks
Interview of candidates
Tests and examinations
Medical examination
Letter of employment
Recruitment
Sources of new employees
Inside the business
Outside the business
Internal recruiting techniques
The organisation searches for potentially qualified candidates by looking at skills
Recommendations of outsides by present employees
Job posting - notify all present employees
Seeks to attract job applicants with the necessary skills and motivation to cover these shortages
External sources include
Schools, colleges, universities
Private and public employment agencies
Advertising in newspapers, trade journals, radio, etc
Manpower planning
Purpose of manpower planning is to determine
How many employees the business needs
What skills these employees must have
When these employees will be needed
Techniques should be applied
Job analysis
Systematic method of obtaining all the relevant information about the tasks related to a specific job
Manning table
Reflecting the number of people required and the skills they must have
Work load analysis
To determine how many people are required in terms of the amount of work that must be done. It is not yet known what skills these people must have
HR Activities (2)
Placement of staff
Abilities of the individuals are compared with the requirements of the vacant positions and each individual is then placed in the position where the best match is achieved
Remuneration and employment benefits
Job evaluation
Paterson - looks at the decision making responsibility associated with a particular job and then bases the remuneration range on this
Hay - considers factors such as level of knowledge required to do the job, accountability and problem solving skills required in a particular job
Salaries
Wages
Employee benefits
Compulsory
Medical aid
UIF
Pension or provident fund
Futher
Company car / travel allowance
Meals
Housing allowance
Discounts on goods purchased
Salary scale
Cost to company - Salary amount is earned even if a benefit is not taken
Basic plus benefit - An employee loses the benefit if it is not taken
Employment contracts
Employer and employee need to agree, draw up and sign
Contract should include:
Employee details
Employment details
Salary issues
Leave details
Termination of services
Employer details
HR Activities (3)
Training of staff and skills development
Aims of the skills development act
Ensure the workplace is also a place of learning
Invest more in education and training
Ensure that good quality training programmes are offered
Improve employment opportunities for disadvantaged people
Encourage employees to get involved in training programmes
Well planned training process consists of:
The job analysis that has been done will give more information as to the skills that are required in specific jobs
The persons job performance must be analysed
Business operations must be analysed to identify problems that may exist, and to determine what kind of skills will be needed
Training needs are then determined
Develop training objectives
Develop a training program
Train the staff by one of the following
On the job training
Off the job training
Apprenticeship training
Workshops
Job rotation / multi-skilling
Self study
Online training companies
Buddy system / mentorship
Learnership
Evaluation
Training can help improve / change
The knowledge, skills and productivity levels of employees
The behaviour and attitude of employees
Evaluation and retention
Retention
A high employee turnover is not good for productivity levels, public image and employee morale. Business must retain employees
Succession planning
To effectively deal with change in key positions in the enterprise. Key personnel are recruited, developed and trained
Evaluation
This enables management to see whether training goals have been met and to assess workers skill levels
Five accepted succession planning steps
Determine the skills, knowledge and competencies needed
Identify succession management strategies (recruitment)
Identify critical positions
Implement the chosen plan
Evaluation
Induction
Purpose of induction
To enable the new employee to fit into the existing work group
To let the new employee learn the ways in which the business does or does not do things, as well as the general rules that apply
Must include
Introduction to fellow workers and people with whom they will work
How the department fits into the business, and knowledge of products and services
Knowledge of what superiors expect
Appointment of a mentor
Most relevant and immediate kinds of information and company policies