Human Resource Management Summary Notes

Employees are no longer seen as just resources = Human Capital HUMAN RESOURCE MANAGEMENT (HUMAN CAPITAL FUNCTION) Defini on Managing employees to improve their effec veness and efficiency. Purpose Bridge the gap between management goals and the employee’s needs. Maximise their poten al to achieve business goals. Manpower Planning Job Analysis: Determines the following:  How many employees are needed?  When are they needed?  What skills do they need to have Job Descrip on: Job Specifica on Skills gap Func on  Interpret employee’s & employer’s needs.  Ensure all labour legisla on requirements are met.  Implemen ng various ac vi es [recruitment, selec on, etc.] Determines all the tasks and responsibili es associated with each job in the organisa on Specifies: Job tle, summary of the job, du es and working condi ons. (about the job itself). Focuses on the minimum ability a poten al candidate must have for the job – qualifica ons, skills and experience (about the person applying for the job). The difference between the skills available and the skills needed in a business. The Process of procuring the finest talent : 1. RECRUITING (FINDING EMPLOYEES) Sources of new employees: 1. Within the business – people are appointed to new posi ons by means of transfers or promo ons. 2. Outside the business – Appoin ng people from other businesses, schools & varsi es. Internal recrui ng:  Job pos ng – employer no fies all current employees about the posi on and invites them to apply.  The business searches its files of the employees and then invites certain employees to apply for the posi on.  Recommenda ons from current employees about people outside the business – combina on of internal and external recrui ng. If the business cannot find the right person in the business they then look outside. Employing internally creates a posi ve morale among the employees. External recrui ng:  Adver sing in newspapers, trade journals, radio, window displays & no ce boards.  Educa onal ins tu ons like schools, varsi es, etc.  Private & public employment agencies.  ‘Walk-ins’.  Internet recrui ng. Depending on the posi on needing to be filled will depend on the type of external recruitment used. 2. SELECTION – (Screening and choosing employees) Recrui ng is posi ve while selec on is a nega ve process.  Selec on aims at excluding unsuitable candidates – skill & experience don’t match job specifica on.  Good selec on results in lower staff turnover, lower produc on costs, less training & higher produc vity. STANDARD SELECTION PROCEDURES: 1-Receipt Of applicant’s forms & C.V A er closing date, list drawn up of all applicants. Submi ed docs should be checked against required docs. 2-Ini al screening Iden fy applicants who don’t meet requirements. Unsuccessful applicants are no fied in some way. Successful applicants – next step! 3-CV/Job applica on evalua on (draw up a short list) Panel goes through successful CV’s Evaluates them according to minimum requirements of the job. Measured against predetermined set of criteria. Short list is drawn up according to these scores. 4-Check references and backgrounds Ask references ques ons about applicant’s abili es. 5-Interview candidates on short list. Interview panel = one person or group of people. Aim is to get info from applicant and give more info to applicant about the business. 6-Tests & examina ons Different tests can be done by applicant: Ability/trade test; Psychometric tests; work sample tests. 7-Medical examina on May not be given unless it is required for the job. HIV/Aids tes ng laws are strict. Employee can be given health ques onnaire and if there are concerns then a medical examina on can be requested. 8-Le er of appointment The decision of who to appoint is now made. Applicants are listed in order of preference. 1st on the list is given an offer in wri ng, if they decline 2nd is given the offer etc. Le er of appointment needs to be signed if it is legally binding. 3. EMPLOYMENT CONRACTS  Labour rela ons Act now requires employee and employer to draw up a contract and both sign.  Must contain at least the Basic Condi on of the employment act.  Contract should include things like: Employer details, employee details, employment details, salary issues, leave details, termina on of service, other issues deemed necessary. 4. PLACEMENT OF STAFF  This takes place when a large number of people are appointed at the same me.  This requires that the abili es of the individuals are compared with the requirements of the vacant posi ons and each individual is then placed in the posi on where the best match is achieved. 5. INDUCTION This refers to “orienta on” given to all new employees to acquaint them to both the workplace and the people they will be working with. Can include:  Hardcopy of code of ethics and code of conduct  Intro to manager and other staff members  Tour of the facili es  Alloca on of mentor/buddy 6. REMUNERATION OF EMPLOYEES  SALARIES: Payments made to permanent employees, fixed amount paid monthly.  COMMISION: A percentage of the sales the person can make over and above their salary.  PERFORMANCE BONUS: Managers commonly get performance bonuses over and above their salaries as an incen ve.  PROFIT SHARE: Also seen as a type of incen ve where part of the annual net profit is shared among the directors/managers.  WAGES: Employees providing less skill, payment is generally on a weekly basis. Can be paid for me worked or at a fixed rate.  OVERTIME: Payment for working a er normal working hours or public holidays etc. All payments must comply with the Basic condi ons of employment Act.  BENEFITS: Different companies offer different benefits to their employees. Some are compulsory deduc ons like tax, UIF and pension fund. The balance is not. Other benefits include: Housing allowance, car allowance, study allowance, meals, discounts, loans, uniform allowance, 13th cheque, entertainment allowance.  TAX DEDUCTIONS: If you earn less than R80 000 you pay SITE (Standard income tax on employees). Over R80 000 you pay PAYE (Pay as you earn) – this is progressive, the more you earn, the more you pay.  BASIC PLUS BENEFITS: Your basic salary is paid and then any op onal benefit the company may offer is over and above your salary. If you don’t make use of it, it falls away.  COST TO COMPANY: The business gives you one amount and in that amount is the addi onal amount for different benefits, if you use the benefits or not the money remains yours. 7. TRAINING OF STAFF AND SKILLS DEVELOPMENT  TRAINING: A job specific process intended to raise the employee’s performance and efficiency. Changing or improving on knowledge, skill, behaviour, and a tude.  SKIILS DEVELOPMENT ACT: Workplace must be a place of learning; businesses must invest more in good quality training, improve employment opportuni es for the disadvantaged, and encourage employee involvement in programmes. TRAINING PROCESS 1 – iden fy the skills gap 2 – consider the training resources available 3 – Design the training programme by describing the learning outcomes. 4 - train staff! 5 – Evaluate training results Types of training: On-the-job Classroom training E-Learning Workshop Self-Study Mentorship/ Buddy system Learnership Blended approach training in real work situa on. A lecture is provided through a course, university or training provider. Online courses promote interac on, update skills. employee goes through material at own pace. working together with senior employee. person works for the business while studying. A combina on of two or more of the other types of training 8. EVALUATION It is important to monitor the efficiency of the staff and their performance.  This is to check whether training goals have been met and the level of skill of the workers.  Appraisals are generally done by management only; however, peer evalua on is also common.  The func on of performance appraisal is to give employee feedback on their past performance, look at strengths and weaknesses and discuss any employment issues that have arisen.  Performance Appraisals can be a planning tool, evalua on tool or feedback tool. 9. RETENTION  High staff turnover is not good for the company image, staff morale or produc vity levels.  It is costly and me consuming to recruit and train new employees.  Produc on may slow and plans may need to be altered if employees leave.  Try retain your staff but understand it is normal for staff to leave for certain reasons like spouse transfers, health reasons etc. 10. SUCCESSION PLANNING   This is a process whereby key personnel are recruited, developed and trained to full key posi ons in the enterprise. Personnel are prepared for future advancement and promo on.