Bba2 HRM SG v4.1 e F

BACHELOR OF
BUSINESS
ADMINISTRATION
Human Resource
Management II
Contact details:
Regenesys Business School
Tel: +27 (11) 669-5000
Fax: +27 (11) 669-5001
Email: info@regenesys.co.za
www.regenesys.co.za
This study guide highlights key focus areas for you as a student. Because the field of study in question is so
vast, it is critical that you consult additional literature.
Copyright Regenesys, 2016
All rights reserved. No part of this publication may be reproduced, stored in or introduced into a retrieval
system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording or
otherwise) without written permission of the publisher. Any person who does any unauthorised act in relation
to this publication may be liable for criminal prosecution and civil claims for damages.
C ONTENTS
1. WELCOME TO REGENESYS ................................................................................................................... 1
2. INTRODUCTION........................................................................................................................................ 2
2.1 LEARNING OUTCOMES ................................................................................................................... 2
3. TEACHING AND LEARNING METHODOLOGY ....................................................................................... 3
3.1 PRINCIPLES FOR RESPONSIBLE MANAGEMENT EDUCATION .................................................. 4
3.2 REGENESYS INTEGRATED LEADERSHIP AND MANAGEMENT MODEL ................................... 6
4. KEY TO ICONS USED IN THIS COURSE ................................................................................................ 7
5. STUDY MATERIAL .................................................................................................................................... 8
6. PRESCRIBED AND RECOMMENDED RESOURCES ............................................................................. 8
6.1 BOOKS .............................................................................................................................................. 8
6.2 ARTICLES.......................................................................................................................................... 9
6.3 PRESCRIBED LEGISLATION ........................................................................................................... 9
6.4 MULTIMEDIA ................................................................................................................................... 11
6.5 ADDITIONAL SOURCES TO CONSULT......................................................................................... 12
7. CONTENT SCOPE AND LEARNING GUIDANCE .................................................................................. 13
7.1 HUMAN RESOURCE PLANNING AND SUCCESSION PLANNING .............................................. 14
7.1.1 INTRODUCTION ................................................................................................................... 14
7.1.2 HUMAN RESOURCE PLANNING ......................................................................................... 15
7.1.3 HUMAN RESOURCE PLANNING CYCLE ............................................................................ 18
7.1.4 PITFALLS IN HUMAN RESOURCE PLANNING ................................................................... 21
7.1.5 KEY POINTS ......................................................................................................................... 29
7.2 CAREER PLANNING ....................................................................................................................... 30
7.2.1 INTRODUCTION ................................................................................................................... 30
7.2.2 CAREERS AND CAREER PLANNING.................................................................................. 32
7.2.3 CAREER DEVELOPMENT .................................................................................................... 33
7.2.4 CAREER PLANNING AND DEVELOPMENT ........................................................................ 33
7.2.5 CAREER MANAGEMENT ..................................................................................................... 35
7.2.6 CAREER PLANNING PROCESS .......................................................................................... 36
7.2.7 CAREER DEVELOPMENT PLAN ......................................................................................... 39
7.2.8 CAREER MANAGEMENT METHODS .................................................................................. 42
7.2.9 KEY POINTS ......................................................................................................................... 42
7.3 JOB DESCRIPTION......................................................................................................................... 43
7.3.1 INTRODUCTION ................................................................................................................... 43
7.3.2 JOB DESCRIPTION .............................................................................................................. 44
7.3.3 JOB ANALYSIS ..................................................................................................................... 45
7.3.4 JOB SPECIFICATION ........................................................................................................... 46
7.3.5 KEY POINTS ......................................................................................................................... 46
7.4 LABOUR RELATIONS ..................................................................................................................... 47
7.4.1 INTRODUCTION ................................................................................................................... 48
7.4.2 LABOUR LEGISLATION IN SOUTH AFRICA ....................................................................... 50
7.4.3 IMPLICATIONS OF LABOUR LEGISLATION FOR ORGANISATIONS................................ 66
7.4.4 KEY POINTS ......................................................................................................................... 67
7.5 PERFORMANCE MANAGEMENT .................................................................................................. 68
7.5.1 INTRODUCTION ................................................................................................................... 68
7.5.2 PERFORMANCE MANAGEMENT PROCESS...................................................................... 70
7.5.3 BENEFITS OF A PERFORMANCE MANAGEMENT PROCESS.......................................... 70
7.5.4 PERFORMANCE APPRAISAL .............................................................................................. 72
7.5.5 KEY POINTS ......................................................................................................................... 74
7.6 REWARDS AND REMUNERATION ................................................................................................ 75
7.6.1 INTRODUCTION ................................................................................................................... 75
7.6.2 REWARDS............................................................................................................................. 76
7.6.3 ROLE OF REWARD IN THE ORGANISATION ..................................................................... 77
7.6.4 REMUNERATION .................................................................................................................. 79
7.6.5 MOTIVATION......................................................................................................................... 79
7.6.6 MOTIVATING STAFF ............................................................................................................ 82
7.6.7 KEY POINTS ......................................................................................................................... 84
7.7 LEADERSHIP .................................................................................................................................. 85
7.7.1 INTRODUCTION ................................................................................................................... 85
7.7.2 LEADERSHIP ........................................................................................................................ 86
7.7.3 LEADERSHIP AND MANAGEMENT ..................................................................................... 87
7.7.4 LEADERSHIP STYLES ......................................................................................................... 89
7.7.5 OTHER LEADERSHIP STYLES ............................................................................................ 90
7.7.6 ETHICS AND SUSTAINABILITY ........................................................................................... 94
7.7.7 KEY POINTS ......................................................................................................................... 96
8. REFERENCES......................................................................................................................................... 97
9. GLOSSARY OF TERMS ........................................................................................................................ 102
10. VERSION CONTROL .......................................................................................................................... 103
List of Tables
TABLE 1: TRADITIONAL VERSUS CAREER DEVELOPMENT FOCUS ....................................................... 35
TABLE 2: POSSIBLE EMPLOYER CAREER PLANNING AND DEVELOPMENT PRACTICES ................... 42
TABLE 3: PUBLIC HOLIDAYS ........................................................................................................................ 62
TABLE 4: THE IMPORTANCE OF PERFORMANCE APPRAISALS ............................................................. 73
TABLE 5: DIFFERENCES BETWEEN LEADERSHIP AND MANAGEMENT ................................................. 88
List of Figures
FIGURE 1: SUCCESSION PLANNING PROCESS ........................................................................................ 28
FIGURE 2: CAREER PLANNING PROCESS ................................................................................................. 36
FIGURE 3: CAREER DEVELOPMENT PLAN ................................................................................................ 40
FIGURE 4: JOB ANALYSIS ............................................................................................................................ 45
FIGURE 5: THE NATURE OF LABOUR RELATIONS .................................................................................... 49
FIGURE 6: SOUTH AFRICAN LABOUR LAW FRAMEWORK ....................................................................... 52
FIGURE 7: PERFORMANCE MANAGEMENT PROCESS ............................................................................ 70
FIGURE 8: THE PERFORMANCE MANAGEMENT PROCESS MODEL ...................................................... 71
FIGURE 9: PERFORMANCE APPRAISAL PROCEDURE ............................................................................. 74
1. WELCOME TO REGENESYS
Have a vision. Think big. Dream, persevere and your vision will become a reality.
Awaken your potential, knowing that everything you need is within you.
Dr. Marko Saravanja
At Regenesys we help individuals and organisations achieve their personal and organisational
goals by enhancing their management and leadership potential. Our learning programmes are
designed to transform and inspire your mind, heart and soul, helping you to develop the
knowledge, skills, positive values, attitudes and behaviours required for success.
Having educated more than 100 000 students based in highly reputable local and international
corporations across more than 160 countries since the inception of Regenesys in 1998, we are
now one of the fastest-growing institutions of management and leadership development in the
world. Our ISO 9001:2008 accreditation bears testimony to our quality management systems
meeting international standards. We are also accredited with the Council on Higher Education.
At Regenesys you will be taught by business experts, entrepreneurs and academics who are
inspired by their passion for human development. You will be at a place where business and
government leaders meet, network, share their experience and develop business relationships.
We encourage holistic leadership development by fostering multiple intelligences at an intellectual,

physical, emotional, and spiritual level. We promote the development of rational intelligence (IQ) by
honing your critical and analytical abilities so that you become a better problem-solver and
innovative thinker. We will foster your spiritual intelligence (SQ) as a purpose- and value-driven
individual who can rise above adversity, take difficult decisions and make a difference. We will help
you develop your emotional intelligence (EQ) so that you can significantly improve your
relationships and resolve conflict effectively. You will have the opportunity to hone your financial
acumen through the personal finance education available on campus. And, because studying often
adds pressure to an already stressful life, we will also help you develop physical intelligence (PQ)
by learning how to manage stress and lead a healthier lifestyle.
We will help you awaken your potential and to realise that everything you need to succeed is within
you. And we will be with you every step of the way.
Areas of Expertise
Regenesys Business School 1

2. INTRODUCTION
Welcome to the second year module on human resource management (HRM). In your first year,
we introduced you to HRM, to the functions and responsibilities of HRM, and to matters such as
recruitment and selection, managing people in the work environment, performance management
and motivation, conflict management, emotional intelligence, and organisational culture and reward
systems.
In your second year we focus on matters such as HR planning, succession planning, developing a
career plan, job descriptions, labour legislation, performance management, rewards and
remuneration and leadership styles.
2.1 L EARNING O UTCOMES
On completing this course, you should be able to:
Explore the elements of the HR planning cycle;

Explain the components of a succession plan;
Develop a career plan;
Develop job descriptions;
Identify Review the implications of labour legislation on an organisation;
Explore performance management and the use of performance appraisals;
Understand Differentiate the differences between reward and remuneration in motivating
staff; and
Explain review key leadership styles.

3. TEACHING AND LEARNING METHODOLOGY
Regenesys uses an interactive teaching and learning methodology that encourages self-reflection
and promotes independent and critical thinking. Key to our approach is an understanding of adult
learning principles, which recognise the maturity and experience of participants, and the way that
adult students need to learn.
At the core of this is the integration of new knowledge and skills into existing knowledge structures,
as well as the importance of seeing the relevance of all learning via immediate application in the
workplace.
Practical exercises are used to create a simulated management experience to ensure that the
conceptual knowledge and practical skills acquired can be directly applied within the work
environment of the participants. The activities may include scenarios, case studies, self-reflection,
problem solving and planning tasks.
Our courses are developed to cover all essential aspects of the training comprehensively in a user-
friendly and interactive format. Our subject matter experts have extensive experience in
management education, training and development.

3.1 P RINCIPLES FOR R ESPONSIBLE M ANAGEMENT
E DUCATION
Regenesys upholds the UN Global Compacts Principles for Responsible Management Education:
Purpose: We will develop the capabilities of students to be future generators of sustainable

value for business and society at large and to work for an inclusive and sustainable global
economy.
Values: We will incorporate into our academic activities and curricula the values of global
social responsibility as portrayed in international initiatives such as the United Nations
Global Compact.
Method: We will create educational frameworks, materials, processes and environments

that enable effective learning experiences for responsible leadership.
Research: We will engage in conceptual and empirical research that advances our
understanding about the role, dynamics, and impact of corporations in the creation of
sustainable social, environmental and economic value.
Partnership: We will interact with managers of business corporations to extend our

knowledge of their challenges in meeting social and environmental responsibilities and to
explore jointly effective approaches to meeting these challenges.
Dialogue: We will facilitate and support dialogue and debate among educators, students,
business, government, consumers, media, civil society organisations and other interested
groups and stakeholders on critical issues related to global social responsibility and
sustainability.
(PRME, 2014:1)

As you start to apply the concepts you learn from this course in your work, think about the
effect of your action on all stakeholders the people your organisation serves, your
colleagues and the public at large. What are the ethical implications of what you intend to
do? How will you ensure that your strategies and activities are sustainable in the triple-
bottom-line sense, considering people, planet and profit requirements?
ETHICAL CONSIDERATIONS HOW WILL YOUR ACTIONS AFFECT:
PEOPLE
(QUALITY OF LIFE)
Bearable Equitable
Sustainable
PLANET PROFIT/PROSPERITY
(STEWARDSHIP) Viable (VALUE CREATION)
The Ten Principles
The UN Global Compact, in its 10 principles, asks organisations to:
Support and respect the protection of internationally proclaimed human rights;

Ensure they are not complicit in human rights abuses;
Uphold workers freedom of association and the effective recognition of the right to
collective bargaining;
Eliminate all forms of forced and compulsory labour;
Abolish child labour;
Eliminate discrimination in respect of employment and occupation;
Support a precautionary approach to environmental challenges;
Undertake initiatives to promote greater environmental responsibility;
Encourage the development and diffusion of environmentally friendly technology; and
Work against corruption in all its forms, including extortion and bribery.
(United Nations, nd)
As a business student you have the capacity to bring about real change. As much as
businesses are shaped by their environment, their actions influence the environment. You can
contribute to sustainable change by managing responsibly.

3.2 R EGENESYS I NTEGRATED L EADERSHIP AND
M ANAGEMENT M ODEL
This course will draw on a model developed by Regenesys Management, demonstrating how the
external environment, the levels of an organisation, the team and the components of an individual
are interrelated in a dynamic and systemic way. The success of an individual depends on his or
her self-awareness, knowledge, and ability to manage these interdependent forces, stakeholders
and processes.
The degree of synergy and alignment between the goals and objectives of the organisation, the
team and the individual determines the success or failure of an organisation. It is, therefore,
imperative that each organisation ensures that team and individual goals and objectives are
aligned with the organisations strategies (vision, mission, goals and objectives, etc); structure
(organogram, decision-making structure, etc); systems (HR, finance, communication,
administration, information, etc); culture (values, level of openness, democracy, caring, etc). An
effective work environment should be characterised by the alignment of organisational systems,
strategies, structures and culture, and by people who operate synergistically.
Regenesys Integrated Leadership and Management Model

4. KEY TO ICONS USED IN THIS COURSE
Video clip Example
Presentation In a nutshell important summary
Audio Definitions and glossary
Self-reflection activity to complete Calculations
Quote Digital assessment
Note important information Workbook
Interesting source to read Discussion forum
References Recommended resources
Task to complete Web link
Rate your skills Downloadable item
Appendix Version control

5. STUDY MATERIAL
Your material includes:
This study guide

Recommended reading
Assignment
These resources provide you with a starting point for your studies. Additional resources to help you
complete this course will be provided online via the link to this course. Guidance on how to access
the material is provided in the academic handbook you received when you registered for this
qualification.
6. PRESCRIBED AND RECOMMENDED RESOURCES
A number of resources are recommended to help you complete this course. Please make sure you
have your prescribed books to hand before you start.
6.1 B OOKS
The following textbook is prescribed and should be used to complete the course:
Dessler, G., Barkhuizen, N., Bezuidenhout, A., de Braine, R., du Plessis, Y., Nel, P., Schultz, C., Stanz, K. and
van der Walt, H. 2011, Human Resource Management: Global and Southern African Perspectives, Cape Town:
Pearson Education.
Please ensure you order or download your textbook before you start the course.

6.2 A RTICLES
The following articles are highly recommended for this course:
Brooks, S. 2014, Strategic, future-proof succession planning connects Telefnica with success, Human
Resource Management International Digest, (22) 2, 28-30,
www.emeraldinsight.com/doi/pdfplus/10.1108/HRMID-04-2014-0040 (accessed 15 September 2015).
Eales-White, R. 2012, Building high-performing teams rapidly, Industrial and Commercial Training, 44 (7), 424-
428, www.emeraldinsight.com/doi/pdfplus/10.1108/00197851211268018 (accessed 15 September 2015).
Gill, S. 2014, Rewards for failure: an explanation for anomalous executive remuneration, Journal of Indian
Business Research, 6 (2), 90-127, http://www.emeraldinsight.com/doi/pdfplus/10.1108/JIBR-05-2013-0054
(accessed 15 September 2015).
Haines, S., Hamouch, S. and Saba, T. 2014, Career success: fit or marketability?, Career Development
International, (19) 7, 779-793, www.emeraldinsight.com/doi/pdfplus/10.1108/CDI-02-2014-0023 (accessed 15
September 2015).
Mesu, J., van Riemsdijk, M. and Sanders, K. 2012, Labour flexibility in SMEs: the impact of leadership,
Employee Relations (35) 2, 120-138, www.emeraldinsight.com/doi/pdfplus/10.1108/01425451311287835
Additional articles that may prompt discussions and further assist you in completing this course will
be saved on Regenesys Online under the relevant course. Please visit the site regularly to access
these additional sources.
6.3 P RESCRIBED L EGISLATION
The following legislations is highly recommended for this course:
Basic Conditions of Employment Act, No. 75, of 1997,

http://www.plato.org.za/pdf/legislation/Basic%20Conditions%20of%20Employment%20Act%2075%20of%2019
97.pdf (accessed 15 September 2015).
Basic Conditions of Employment Amendment Act 2013,

http://www.labour.gov.za/DOL/downloads/legislation/acts/basic-conditions-of-
employment/bcearegulations2014.pdf (accessed 15 September 2015).

Compensation for Occupational Injuries and Diseases Act, No. 130 of 1993,
http://www.labour.gov.za/DOL/downloads/legislation/acts/compensation-for-occupational-injuries-and-
diseases/Act%20-%20Compensation%20for%20Occupational%20Injuries%20and%20Diseases.pdf (accessed
15 September 2015).
Compensation for Occupational Injuries and Diseases Amendment Act No. 61 of 1997,
http://www.labour.gov.za/DOL/downloads/legislation/acts/compensation-for-occupational-injuries-and-
diseases/amendments/Amendment%20-
%20Compensation%20for%20Occupational%20Injuries%20and%20Diseases%201997.pdf (accessed 15
September 2015).
Constitution of the Republic of South Africa, 1996,

http://www.justice.gov.za/legislation/constitution/SAConstitution-web-eng.pdf (accessed 15 September 2015).
Employment Equity Act No. 55 of 1998, http://bee.b1sa.co.za/docs/The Employment Equity Act 1998.pdf
Labour Relations Act and Amendments, www1.chr.up.ac.za/undp/domestic/docs/legislation_30.pdf (accessed

15 September 2015).
Occupational Health and Safety Amendment Act, No. 181, of 1993,

http://www.polity.org.za/article/occupational-health-and-safety-amendment-act-act-181-of-1993-1993-08-21
Public Holiday Act, No. 36 of 1994, http://www.gov.za/sites/www.gov.za/files/Act36of1994.pdf (accessed 15

September 2015).
Public Holidays Amendment Act, No. 48 of 1995, http://www.gov.za/sites/www.gov.za/files/a48-95.pdf

Skills Development Amendment Act, No. 26 of 2011, http://www.polity.org.za/article/skills-development-

amendment-act-2011-act-26-of-2011-2012-03-28 (accessed 15 September 2015).

6.4 M ULTIMEDIA
The following multimedia clips are highly recommended for this course:
Career plan examples: career development plan explained, nd,

https://www.youtube.com/watch?v=lYZCTiqP_ow (accessed 15 September 2015).
CNBCAfrica. 2013, South Africas labour laws, https://www.youtube.com/watch?v=QhUb3I3nbww, (accessed

15 September 2015).
DAV Professional Placement Group. 2013, Changes in the South African labour legislation are you ready?
http://www.youtube.com/watch?v=Z0pgPMIUf24 (accessed 15 September 2015).
Mennens, J. 2014, How to create a performance management system,

https://www.youtube.com/watch?v=8ijBfprUNuQ (accessed 15 September 2015).
Goldberg, S. 2012, How to write a job description template sample,

https://www.youtube.com/watch?v=gjeADZnUNDw (accessed 15 September 2015).
ThePeopleDymanic.com. 2011, HR basics: performance and rewards,

https://www.youtube.com/watch?v=ALZVggBDODY (accessed 15 September 2015).
Mindset Learn. 2013, Revision: industrial relations, https://www.youtube.com/watch?v=78SR_nKwGC8,

RSA Animate Drive. 2010, The surprising truth about what motivates us,
https://www.youtube.com/watch?v=u6XAPnuFjJc (accessed 15 September 2015).
Nakisa Inc, 2009, Why succession planning is essential: the case of the runaway talent,
https://www.youtube.com/watch?v=GZ8C3ie0drw (accessed 15 September 2015).
Zigarelli, M. 2013, Ten leadership theories in five minutes,

https://www.youtube.com/watch?v=XKUPDUDOBVo (accessed 15 September 2015).
Please note: If clicking on a hyperlink does not take you directly to the expected website, please
check that your browser is open and connected to the net, and cut and paste the URL (the www
address) into your browser and click on it to access the link. Please report any broken links or
any other problems encountered on your educational journey that we can solve to
feedback@regenesys.co.za so we can fix them for you.

6.5 A DDITIONAL S OURCES TO C ONSULT
As a higher education student, you are responsible for sourcing additional information that will
assist you in completing this course successfully. Below is a list of sources that you can consult to
obtain additional information on the topics to be discussed in this course:
These online databases contain journal articles, e-books and multimedia relevant to your
Ebsco and Emerald
studies. Registered students in good standing can access them through the student portal.
NetMBA MBA constructs and discussion. http://www.netmba.com/

MindTools Ideas, constructs, management models and commentary. http://www.mindtools.com/
A Brunel University support site that provides links to various open access repositories.
Brunel open learning
http://www.brunel.ac.uk/services/library/research/managing-your-research-profile/institutional-
archive
repositories
Provides management models generalisations of business situations when applied in
ProvenModels context that can be powerful tools for solving business problems.
http://www.provenmodels.com/
12manage.com More models, principles and global commentary. http://www.12manage.com/
Web resources covering capacity building, management, leadership, organisational culture

and more for nonprofit professionals, social entrepreneurs, community leaders,
4Good.org
philanthropists, and anyone else who cares about social good. https://4good.org/alliance-
admin/alliance-resources
The Free Comprehensive overviews of strategic planning.

Management Library http://www.managementhelp.org/np_progs/sp_mod/str_plan.htm
Short articles by Canadian consultant Ron Robinson, discussing various ways of approaching
the strategic planning process for nonprofit organisations refreshing in that they do not
The Charity Village
advocate a one best way. https://charityvillage.com/topics/management/planning/strategic-
planning.aspx?page1424=2
The TEDx programme (Technology, Entertainment and Design) was created to help
communities, organisations and individuals to spark conversation and connection through
TEDx
local TED-like experiences. It covers everything from science to business and global issues in
more than 100 languages. https://www.ted.com/about/our-organization
A word of caution not all information available on the internet is necessarily of a high academic
standard. Always compare information that you obtain with that contained in reputable sources such
as articles published in accredited journals.

7. CONTENT SCOPE AND LEARNING GUIDANCE
A number of topics will be covered to help you achieve the learning outcomes of this module. It is
important to study each of these sections to ensure that you expand your knowledge in the subject
and are able to complete the required assessments.
Section 1 Human Resource Planning and Succession Planning
Section 2 Career Planning
Section 3 Job Description
Section 4 Labour Relations
Section 5 Performance Management
Section 6 Rewards and Remuneration
Section 7 Leadership
A more detailed framework of what is required for each of these topics follows under each section
heading. A number of questions to probe discussion and guide you towards comprehension and
insight are also provided.
The timetable under each section heading provides guidance on how long to spend studying the
section. Follow the timetable to ensure that you spend adequate time on each section, covering the
required sections relevant to each assignment and giving yourself enough time to prepare for the
examination.

7.1 H UMAN R ESOURCE P LANNING AND S UCCESSION
P LANNING
Timeframe Minimum of four hours
Explore the elements of the HR planning cycle; and

Learning outcomes
Explain the components of a succession plan.
Dessler et al, 2011, Human Resource Management: Global and Southern African
Recommended book
Perspectives, Cape Town: Pearson Education.
Brooks, S. 2014, Strategic, future-proof succession planning connects Telefnica with

Recommended success, Human Resource Management International Digest, (22) 2, 28-30,
articles www.emeraldinsight.com/doi/pdfplus/10.1108/HRMID-04-2014-0040 (accessed 15
September 2015).
Recommended
All items on list of recommended multimedia
multimedia
Human resource planning and succession planning of personnel in the organisation are the
Section overview: responsibilities of the HR department. In this section the elements of the HR planning cycle and
components of a succession plan are explained.
7.1.1 Introduction
Lets Talk About It
Purpose: To discuss human resource planning and succession planning
Time: 10 minutes in pairs

10 minutes in plenary
1. Define human resource planning in your own words.

2. Define succession planning in your own words.
3. What do you think are the challenges for human resource planning and succession planning for the next 10 years?

To achieve the organisations objectives, the human resource planning process should be linked to
its strategic plan. Human resource planning is a vital element in maintaining a competitive
advantage and reducing employee turnover. HR planning is the responsibility of the HR
department, which must ensure that staffing is sufficient, qualified, and competent to achieve the
organisations objectives.
Watch the video clip on succession planning.
Nakisa Inc, 2009, Why succession planning is essential: the case of the runaway talent,
https://www.youtube.com/watch?v=GZ8C3ie0drw (accessed 15 September 2015).
7.1.2 Human Resource Planning
We regard workforce planning as a systematic yet dynamic process of estimating the future demand
for and supply of employees to execute the organisation's work in ways that will best support its
strategic direction, and deciding how to align and match them.
(Swanepoel, Erasmus and Schenk, 2008:228)
Nel, Gerber, van Dyk, Haasbroek, Schultz, Sono and Werner (2001:218-219) say the following
about human resource planning:
In strategic human resource management, workforce planning plays a central role;

HR managers have only recently recognised the competitive advantage derived from a
highly skilled and available workforce;
Workforce planning plays an increasingly important role in relation to business plans and
corporate strategy;
The organisation stands a better change of success if the unique skills at the disposal of
management are properly matched to the opportunities in the environment;
An organisation should be able to attract a sufficient number of job candidates who have
the abilities and aptitudes required to add value to the organisation;
Filling vacant positions is not a daunting task if proactive planning has taken place; and
Van Clieaf (1995:55) in Nel et al, (2001:219) is of the opinion that an integrated and
holistic resourcing and workforce planning process ensures that the right people are in the
right roles to meet the current organisational profit plan.

Nel et al (2001:219-220) say that workforce planning is part of organisational planning, and they
highlight the following:
The importance of workforce planning is often overlooked;

To be able to reach its long-term goals, an organisation must have the proper number and
mix of employees with the required knowledge, skills, and abilities;
The foundation for personnel staffing is provided by workforce planning;
Rather than trying to provide definitive forecasts, when effective workforce planning is
done, there is an effort to find a probable future scenario;
Risk cannot be eliminated by workforce planning;
Workforce planning offers planners the chance to understand the risks that an organisation
faces;
Given rapid change and uncertainty, workforce planning should be a flexible process of
systematically addressing the strategic fit of environmental and organisational variables;
and
Workforce planning does not occur in isolation.
Benefits of workforce planning
Benefits of workforce planning noted by Horeitz (1991:115) in Nel et al, (2001:220) are:
Workforce planning improves the understanding of the human and social implications of the
business strategy;
It leads to more effective career management;
It helps with employee development and succession planning;
It enables redundancy and retrenchment planning;
Workforce planning allows experienced talent to be recruited in advance of needs; and
The achievement of corporate objectives is facilitated.
An organisation's HR plan should be flexible enough to meet short-term staffing challenges, and be
able in the longer term to adapt to changing conditions in the business and environment. This
means HR planning must be a continuous process. The competencies an organisation needs to
fulfil its goals and acquires the appropriate people are also identified through HR planning.
The factors that influence workforce planning will now be examined. Gerber et al (1992:168) in Nel
et al (2001:220-222) point out factors that influence workforce planning. Internal and external
factors influencing workforce planning are:

Internal factors
Goals of the organisation. An organisation should be able to react quickly to change, and quick
reaction to change is an objective of workforce planning. Expansion of the enterprise,
diversification and downsizing are examples of changes that directly influence the goals of the
organisation.
Organisational style. The organisation's nature determines the style and culture. A dynamic fast-
paced environment is usually staffed by go-getters, risk-takers and people who are
entrepreneurial. People who take very deliberate decisions and who do not like departure from the
norm staff a traditional slow-moving organisation.
Nature of the task. The nature of the task is closely linked to the type of organisation. The
organisational style is determined by the composition and requirements of tasks.
The work group. The functioning of work groups influences workforce planning because teams
are becoming more common in today's workplace. The replacement of individuals in a team
requires knowledge of the group's dynamics. The planning process is also affected by the
interaction between teams.
Style and experience of the leaders. A manager's style and behavioural characteristics are often
influenced by work experience. Job satisfaction or job dissatisfaction is determined by the way the
leader manages his or her subordinates. Higher labour turnover and subsequent increases in
recruitment efforts are possible consequences of job dissatisfaction.
External factors
There are three main external factors that influence workforce planning.
Trade unions. An organisation's long-range planning is often disrupted by the intervention of trade
unions. Unions insist on transparency in everything that management undertakes. Examples are:
insisting that a certain number of workers be employed to perform certain tasks; ensuring that
workers are not dismissed unfairly.
Government requirements and regulations. The Skills Development Act and the Employment
Equity Act, for example, impinge directly on workforce planning strategies.
Economic conditions. A surplus or shortage of people with certain skills has an influence on
workforce planning. An organisation's strategy is affected by the economic climate, and the
salaries that employers can afford to pay have an effect on the quality of staff they can hire.

Read the following and identify the key terms related to HR planning.
"Human resource planning is the process of systematically forecasting both the future demand for
and supply of employees and the deployment of their skills with respect to the strategic objectives
of the organisation. Human resource planning is a process that identifies current and future
requirements of the organisation. Human resource needs for an organisation are based on the
goals and objectives that are set by upper management. It responds to the importance of business
strategy and planning in order to ensure the availability and supply of people in both number and
quality. Human resource planning serves as a link between human resource management and the
overall strategic plan of an organisation."
(Investopedia, 2014:1)
7.1.3 Human Resource Planning Cycle
We now discuss the HR planning cycle as explained by various sources. Investopedia (2014:1)
explains the HR planning process as follows:
Determine what will be accomplished within a given time frame, along with the numbers
and types of human resources needed to achieve the defined business goals;
Define the competencies that are required by workers to achieve business goals;
Match people with these competencies to the right tasks; and
Assess the overall process for progress and improvement.
Human resources professionals need to understand every task in the organisation. The skills and
competencies required of the individuals who carry out those tasks have to be known. Human
resource managers may note experience or competency gaps, or identify new posts that should be
established or a need for new individuals to be hired to ensure proper functioning.
When planning to develop competencies for the organisation, Investopedia (2014:1) says that
"Competency-based management supports the integration of human resource planning with
business planning by allowing organisations to assess the current human resource capacity based
on employees' current skills and abilities. These skills and abilities are measured against those
needed to achieve the vision, mission, and business goals of the organisation."
The organisation will plan how to develop the necessary competencies if the available people lack
them. These competencies might be skills, designing, statistical forecasting, budgeting, technical
competency, operational techniques, etc. Gaps in the organisation's workforce can be addressed
by targeting human resource strategies, plans, and programmes through:
Targeted hiring and staffing;

Employee learning and education;
Career development; and
Succession management.

In order to ensure that the organisation is moved in the desired direction, including employee-
competency gaps, these strategies and programmes are monitored and evaluated regularly.
Through monitoring and evaluating, corrections can be made as needed to the broader human
resource planning process. Bear in mind that the HR planning process is constantly evolving
(Boundless, 2014:1).
According to Smallbusiness (2014:1) the HR planning cycle has four broad phases:
First phase. Gather and analyse information about the expected demand that is based on
the business's future plans and the supply and availability of staff, internally and
externally, to meet these demands.
Second phase. The organisation's specific human resource objectives must be identified.
These objectives can involve decisions about:
o Whether candidates will be promoted from within or hired externally;
o Whether work will be outsourced or done by employees on staff; and
o Whether the organisation prefers to staff for excess capacity or to take a streamlined
approach to staffing.
Third phase. During this phase programmes are designed and implemented that are
aligned with the organisation's objectives. Benefit programmes are included among these
programmes to satisfy employee needs and to retain staff. Training programmes are
included to ensure that staff is prepared to meet current and future demands.
Fourth phase. The final phase involves the monitoring and evaluation of the effectiveness
of the human resource plan, and making changes as appropriate.
Accountlearning (2013:1) explains the HR planning process as follows:
It is a process through which the organisation anticipates future business and

environmental forces;
The manpower requirement is assessed by human resources planning for a future period;
The HR planning process attempts to provide sufficient manpower required to perform
organisational activities;
It is a continuous process that starts with the identification of HR objectives, moves
through analysis of manpower resources and ends at appraisal of HR planning. The main
steps in human resource planning are:
o Assessing human resources;
o Forecasting demand;
o Forecasting supply; and
o Matching demand and supply.
Nel et al (2001:222-224) list the steps in the workforce planning process as:
Step 1: Forecasting labour demand;

Step 2: Estimating labour supply;
Step 3: Implementation of the workforce plan; and
Step 4: Control and evaluation of the workforce planning system.

Assessing human resources
The process begins with an environmental analysis. The external environment (political, economic,
social, technological, international and ecological environments (PESTIE) are analysed for
opportunities and threats. The internal environment of the organisation is analysed for strengths
and weaknesses. These environments are analysed to assess the available HR inventory level.
It is easier for the HR manager to find out the internal strengths, weaknesses, opportunities and
threats (SWOT) after the analysis of the external and internal forces of the organisation. The
analyses include an inventory of the workers and skills available in the organisation, and a
comprehensive job analysis.
Demand forecasting
The process of estimating demand for and supply of human resources in an organisation is known
as HR forecasting. Determining the future needs for human resources in quantity and quality is a
process known as demand forecasting, and is done to meet the future personnel requirements of
the organisation to achieve the desired level of output.
With the help of the organisation's current human resource situation and analysis of organisational
plans and procedures the future human resource need can be estimated. A year-by-year analysis
for every level and type of human resource should be performed annually.
Supply forecasting
Another side of human resource assessment is supply. Supply is concerned with the estimation of
supply of manpower given the analysis of current resource and future availability of human
resource in the organisation. Internal source refers to promotion, transfer, job enlargement and
enrichment, whereas external source includes recruitment of fresh candidates who are capable of
performing well in the organisation.
Matching demand and supply
Matching demand and supply is another step in human resource planning. This step is concerned
with bringing the forecast of future demand and supply of HR into balance. The matching process
brings demand and supply into equilibrium so that shortages and overstaffing are solved.
When an organisation experiences shortages it has to hire more employees. In the case of
overstaffing it has to reduce the level of existing employment. This matching process gives
knowledge about requirements and sources of HR.

Action plan
The last phase of human resource planning is concerned with surplus and shortages of human
resources. During this phase the HR plan is executed through the designation of different HR
activities. Recruitment, selection, placement, training, development and socialising are the main
activities required to execute the HR plan. This step is finally followed by control and evaluation of
performance of HR to monitor whether the HR planning matches the HR objectives and policies.
Update the action plan according to change in time and conditions.
7.1.4 Pitfalls in Human Resource Planning
Human resource managers and supervisors should be aware of pitfalls in human resource
planning. Small business (2014:1) points out three such pitfalls, namely forecasting demand,
succession planning and the uncertain future. Succession planning is discussed later in more
detail where we focus on the components of a succession plan.
Forecasting demand
Forecasting demand is an important yet challenging element of human resource planning for
certain types of skills and positions. The internet and social media skills were in increasing demand
in the early 21st century, for example. Nursing has long been an area of high demand in the health
care industry. Each industry is different and each is impacted by different factors. It can help the
organisation to improve their success at forecasting demand for employees and building the
human resource plan by staying on top of the industry, and changes in the regulatory,
governmental and economy.
Succession planning
Task Question
Define succession planning.
Compare your answer with the description below.
Succession planning is the process whereby company leaders and HR professionals identify key
positions within the company and develop plans to fill those positions either with internal or external
staff.
(Smallbusiness, 2014:1)

Succession planning is closely tied to leadership development. Leadership development is the
process of providing training and on-the-job experiences to prepare internal staff to step into
positions that may become vacant. A key element of human resource planning is succession
planning.
Uncertain future
A number of shifts were seen during the late 20th and early 21st century that suggest changes in
the nature of work in the future. These shifts include:
The growing use of contingent workers (the organisation does not employ the people, but
hires them as needed to perform specific tasks);
The use of virtual workers (people who may or may not work for the organisation but who
are not physically located on the organisation's premises); and
The growing impact of technology on the need for certain types of employees, with need
increasing in some areas and declining in others.
Task Question
Discuss the following question: what would you do in your organisation if a key employee resigned, fell ill or had to be
fired tomorrow? Explain your plan of actions for each circumstance.
In many organisations succession planning is not addressed in any systematic way. Why should
an organisation think about succession planning? Hrcouncil (2014a) points out that organisations
rely on staff to carry out their missions, to provide services and to meet their organisation's goals.
Organisations need to think what would happen to those services or their ability to fulfil their
mission if a key staff member left. The changing realities of workplaces are another reason to
focus on succession planning. In Canada for example, Teresa Howe (in Hrcouncil, 2014b)
identified other emerging realities about the workforce:
In numerous organisations vacancies in senior or key positions are occurring

simultaneously and demographics indicate there are statistically fewer people available to
fill these senior or key positions;
Retirements of baby boomers are on the rise at a time when the economy is growing and
increasing the demand for senior management expertise;
There is no emerging group of potential employees on the horizon as in past generations
(ie baby boomers, women entering the workforce, large waves of immigration);
During the 1980s and 1990s many organisations eliminated middle manager positions and
no longer have this group as a source to fill senior level vacancies; and
Because younger managers who are interested have not been adequately mentored, they
do not have the skills and experience required to move up. This is because middle
managers, which would normally perform this type of coaching role, were eliminated.

Organisations can with careful succession planning manage the changes that result from a
generational transfer of leadership as well as the ongoing changes that occur regularly when key
employees leave an organisation. Large and small organisations need to have a succession plan
in place, even if the type and extent of planning is different. Effective succession planning supports
organisational stability and sustainability, which ensures that there is an established process to
meet staffing requirements. Boards and executive directors can show leadership by having the
strategies and processes in place to ensure that these transitions occur smoothly, with little
disruption to the organisation.
What is succession planning?
A succession plan is a component of good HR planning and management. Hrcouncil (2014b) says
that, Succession planning acknowledges that staff will not be with an organisation indefinitely and
it provides a plan and process for addressing the changes that will occur when they leave.
A succession plan should involve nurturing and developing employees from within an organisation
whenever size and resources permit. Employees can be groomed to move up to fill specific key
positions that are perceived to have the skills, knowledge, qualities, experience and the desire.
Organisations should:
Assess their current and future needs should be assessed according to their strategic plan,
goals and objectives, or according to priority programmes and projects;
Match their needs to the capabilities of the existing workforce; and
Devise a plan to manage the gaps that will arise when individuals in key positions leave or
are promoted. In general the plan should include a combination of training and developing
existing staff and external recruitment.
To avoid a potential constructive dismissal or other claim, include a statement to specify that a
succession plan is not a guarantee of a position; rather it represents a developmental plan to prepare
an individual should opportunities arise within the organisation.
(Hrcouncil, 2014b)
Read the following article on succession planning.
Brooks, S. 2014, Strategic, future-proof succession planning connects Telefnica with success,
Human Resource Management International Digest, (22) 2, 28-30,
www.emeraldinsight.com/doi/pdfplus/10.1108/HRMID-04-2014-0040 (accessed 15 September
2015).

Benefits of succession planning
Benefits of good succession planning include:
It is a means to ensure that the organisation is prepared with a plan to support service
continuity when executive director, senior managers or key people leave;
There is a continuing supply of qualified, motivated people (or a process to identify them),
who are prepared to take over when current senior staff and other key employees leave the
organisation;
An understanding is demonstrated by an alignment between the organisation's vision and
the human resources of the need to have appropriate staffing to achieve strategic plans;
A commitment to develop career paths for employees which will facilitate the organisation's
ability to recruit and retain top-performing employees and volunteers;
An external reputation as an employer that invests in its people and provides opportunities
and support for advancement; and
It sends a message to employees that they are valuable.
An organisation's effectiveness and its sustainability can be undermined by the absence of a

succession plan. An organisation may have no means of ensuring that the programmes and
services that are crucial to its operation are sustained without a succession planning process. The
sustainability is beyond the tenure of the individual currently responsible for them.
Examples of an organisation's effectiveness and its sustainability that can be undermined by

the absence of a succession plan
A mid-sized arts organisation lost an employee who had been hosting, organising and managing a
major fundraising event for a number of years. When he left, staff knew very little about how it was
put together and there was no operations manual documenting the event. This very important event
ended up being abandoned by the organisation because they simply did not know how to run it.
A mid-sized organisation relied heavily on the corporate memory, skills and experience of a long-
time employee. In her final position, she was responsible for office administration including payroll,
budget monitoring and the organisation's major annual fundraising event. Over the course of her
employment she held a variety of positions and had a very good understanding of the organisation's
operations and history.
Her unexpected death was both an emotional blow and a wake up call to her colleagues. Everything
she had known about the organisation was in her head. While discussions had occurred regularly
concerning the need to document this information and to pass this knowledge on to others this had
never happened. The organisation was able to regroup and survive the transition but the employees
experienced high levels of stress as they struggled to determine what needed to happen when. A
great deal of time and effort was spent recreating systems and processes and even then, some
things fell through the cracks resulting in the need to rebuild relationships with supporters.
(Hrcouncil, 2014b)

An organisation's succession plan ensures that there are qualified and motivated employees (or a
means of recruiting them) who are able to take over when the executive director or other key
people leave. The succession plan also demonstrates to stakeholders (such as clients, funders,
employees and volunteers), that the organisation is committed to and able to provide excellent
programmes and services at all times, including during times of transition.
Responsibility for succession planning
In succession planning the board and executive director have pivotal roles. The organisation's
board is responsible for succession planning for the executive director position. The executive
director is hired to ensure it has a skilled manager at the helm to implement the mission and vision.
It is important for boards to spend some time reflecting on what they would do if, or when, the
executive director leaves.
Boards all too often are unprepared for such an occurrence and are left scrambling to replace that
person. There are examples of an executive director leaving only for the organisation to fall into
disarray: funders withdraw resources and other key staff leave due to lack of effective leadership.
Boards sometimes have to find an interim solution in a hurry. Ensuring a succession plan for other
key positions is the responsibility of the executive director.
Read the following example of a failure of succession planning.
All goals are not created equal
Four unrelated partners, Anne, Carlos, Lawrence, and Brian have worked together for decades to
build a strong business. Three of them, Anne, Lawrence, and Brian, are in their mid 60s and intend to
retire. Carlos is some 20 years younger than the others and feels strongly about keeping the
business going. The three retiring partners believe in the business. They genuinely want it to keep
prospering with Carlos as CEO. However, they also want to monetize the value of their investments
to fund retirement. An additional complication is that the group never envisioned three simultaneous
retirements. Everyone always assumed Anne would remain active for several additional years and
spread the transition over time, but because of family medical needs she wants to sell and retire now.
Because of the company's current levels of capital, borrowing capacity, and risk tolerance, it is out of
the question for Carlos to buy out all three of his partners and have anything left to operate with.
Even if the retiring partners were to accept a reduced or deferred payout, the company would be left
crippled. Disappointed, but intent on preserving the value they've built, the four partners decide
instead to sell the business rather than continuing it under Carlos's leadership. Everyone, including
Carlos, receives the full present value of his or her stake in the company from the third party that
buys and absorbs the company. But Carlos loses a different kind of investment the 15 years of time
and effort he'd put in. Rather than taking over as leader and sole owner, he's left with nothing to
manage and the need to find a new job.
Analysis. The four partners shared a group objective, but they failed to map a path to that objective in
a way that reflected the goals of each individual stakeholder. Had they examined the challenge more
deeply and done more advance planning.

The group could have chosen from among several options to bring about the succession outcome
they desired such as:
A stock transition plan;

Creation and revision of buy or sell agreements; or
An earlier, phased transfer of partial ownership from the older partners to Carlos, with
incremental payouts to match.
The group also failed to plan for the unexpected. Back of-the-envelope calculations had told them the
business could weather two retirement buyouts at the same time, but they didn't foresee the sudden
need for three partners to leave simultaneously. Because that need arose without warning, the group
could not be particular about the market window, and may have sold for a price that didn't return as
much value as it should have.
Finally, the four partners focused on financial elements of succession planning. Even if the capital
had been available to leave Carlos at the helm, what kind of team would he have been leading?
Training and preparation a second in-command for each of the four top leaders would have left the
company with more operational flexibility when the big change came, and may have increased the
partners' options at the critical moment.
(Deloitte, 2013:13)
To ensure the process is fair and the succession plan considers different perspectives, ask for input
from all key stakeholders.
Challenges to effective succession planning
Difficulties with succession planning identified by Hrcouncil (2014b) are:
The size of the organisation. Some nonprofit organisations have so few positions that they
cannot offer opportunities for advancement, and so employees with the potential to
advance their careers may move to larger organisations;
Lack of financial resources. Employees may leave the organisation for better salaries and
benefits offered in other workplaces;
The nature of funding. There are fewer core staff members available to take up positions in
the organisations as more and more organisations depend on project funding as opposed
to core funding;
Staff from projects come and go and may not be seen to be part of the talent pool available
to organisations;
Senior leaders in some cases are staying on in their positions, despite the fact that the
skills required for the job may have changed or they are no longer making a meaningful
contribution;
Potential successors may leave to seek new opportunities if a succession plan does not
promote people in a timely fashion; and
Confusion and turmoil can result from poor communication within the organisation as staff
speculate about what the succession plan really is.

Challenges to Effective Succession Planning
The following are regarded as challenges to effective succession planning:
Including employees in the succession plan who are uninterested, unmotivated or lack capacity to advance;
Inadequate training and development may result in an employee who is not prepared for a promotion;
Potential candidates for promotion cannot be guaranteed that they will be promoted. Promotions depend on
timing and need of the organisation.
Critique of these challenges are:
These are not seen as challenges to succession planning.

Succession planning is done for key people or designations in the organisation, whereas promotion is for all set
of employees.
Discuss the following question: are the above statements real challenges for effective succession planning?
Tips for successful succession planning
Organisations can use the following tips for successful succession planning (Hrcouncil 2014b):
Securing senior management and board support for a succession planning shows
employees how important succession planning is to the organisation;
The succession plan should be reviewed and updated regularly. This will ensure that the
organisation reassess its hiring needs and determine where the employees identified in the
succession plan are in their development;
For essential tasks carried out by key posts, procedure manuals should be written that
include step-by-step guidelines; and
Provide adequate time to prepare successors. The earlier individuals are identified, the
easier it will be on individuals to advanced and on other employees who will know whether
certain options are available to them.
A succession plan is a unique reflection of the organisation. Succession plans are as different from
each other as the organisations for which they are made.
Succession planning process
Figure 1 illustrates the succession planning process.

FIGURE 1: SUCCESSION PLANNING PROCESS
Identify critical
positions
Evaluate Identify
Effectiveness competencies
Document
and Identify
succession
implement
management
succession
strategies
plans
(Government of New Brunswick, nd)
The five steps in the succession planning process are explained next.
Step 1: Identify critical positions.

The first step in the process is to identify the critical positions that are the focus of succession
planning efforts. The organisation would be unable to meet its business objectives effectively
without these roles. When identifying risk areas, workforce projection data or demographic analysis
is essential. To identify critical positions in the organisation, a risk assessment may be conducted
and compared to current and future vacancies.
Step 2: Identify competencies.

To guide learning and development plans, to set clear performance expectations, and for
assessing performance, a clear understanding of capabilities required for successful performance
in key areas and critical positions is vital. Current and future employees gain an understanding of
the key responsibilities of the position, including the qualifications and behavioural and technical
competencies required to perform them successfully, by completing the process of competency
profiling or position profiling .
Step 3: Identify succession management strategies.

In this step the organisation chooses from several human resource strategies, including developing
internal pools, onboarding and recruitment to address succession planning after the critical
positions have been identified and profiled for competencies.

Step 4: Document and implement succession plans.
The next step is to document the strategies in an action plan. The action plan provides a
mechanism for clearly defining timelines and roles and responsibilities.
Step 5: Evaluate effectiveness.

It is important to monitor workforce data systematically, to evaluate activities and to make
necessary adjustments so that the organisations succession planning efforts are successful.
Task Questions
With these five steps in mind, discuss how you would execute the succession planning process for succeeding the HR
director in an organisation.
7.1.5 Key Points
In this section the elements of the HR planning cycle and components of a succession plan were
explained. Key points in this section were:
The human resource planning process should be linked to the organisations strategic plan
in order to achieve the organisations objectives;
Workforce planning has various benefits for the organisation;
There are internal and external factors that influence workforce planning;
Succession planning is good for HR planning and management;
Succession planning has various benefits for the organisation;
Effective succession planning has challenges for the organisation; and
The succession planning process consists of identifying critical positions, identifying
competencies, identifying succession management strategies, documenting and
implementing succession plans, and evaluating effectiveness.

7.2 C AREER P LANNING
Timeframe Minimum of 40 hours
Learning outcome Develop a career plan.
Recommended book
Haines, S., Hamouch, S. and Saba, T. 2014, Career success: fit or marketability?, Career
Recommended Development International, (19) 7, 779-793,
articles www.emeraldinsight.com/doi/pdfplus/10.1108/CDI-02-2014-0023 (accessed 15 September
2015).
Recommended
Full reference as per list in recommended multimedia
multimedia
Section overview This section focuses on career planning and the development of a career plan.
7.2.1 Introduction
Lets Talk About It
Purpose: To discuss career planning
Time: 10 minutes in pairs

10 minutes in plenary
1. Define career in your own words.

2. Define career planning in your own words.
3. Define career exploration in your own words.
4. Define career paths in your own words.
5. What do you consider are the challenges for career planning for the next 10 years?
Terms such as career, career exploration, career paths, career planning, career
development and career management are often used by managers and supervisors in the
incorrect context. This section clarifies this terminology.

Watch this video clip on career planning:
Career plan examples: career development plan explained, nd,

https://www.youtube.com/watch?v=lYZCTiqP_ow (accessed 15 September 2015).
Read the following article on career success.
Haines, S., Hamouch, S. and Saba, T. 2014, Career success: fit or marketability?, Career
Development International, (19) 7, 779-793,
www.emeraldinsight.com/doi/pdfplus/10.1108/CDI-02-2014-0023 (accessed 15 September
2015).
Career: The occupational positions a person has had over many years (Dessler et al, 2011:347).
A career can be defined as any sequence of employment and related work experiences, including
upward and lateral movements and as such it can be multidirectional, cut across various
organisations and span multiple roles in ones work life. (Swanepoel, Erasmus and Schenk,
2008:399)
Career planning: Career planning is the formal process through which someone becomes aware of
his or her personal skills, interests, knowledge, motivations and other characteristics; acquires
information about opportunities and choices; identifies career-related goals; and establishes action
plans to attain specific goals. (Dessler et al, 2011:347)
Career planning can be described as a process by which people engage in career exploration,
obtaining information and becoming knowledgeable about themselves (for example their interests,
preferences, abilities, aptitudes, personalities, etc) and about the world of work and employment, and
then making active plans on how to achieve a proper match. (Adapted from Schreuder and Theron
(2001:21) in Swanepoel et al, (2008:399)
Career exploration: Career exploration is when people collect and analyse information regarding
career-related issues, becoming more aware of how they might fit into the world of work.
(Greenhaus et al, 2000 in Swanepoel et al, (2008:399)
Career paths are objective descriptions of sequential work experiences and how these develop or
evolve over time. (Schreuder and Coetzee (2006:59) in Swanepoel et al, (2008:399)

Career development is the lifelong series of activities (such as workshops) that contribute to a
persons career exploration, establishment, success and fulfilment. (Dessler et al, 2011:347)
Career management is: a process for enabling employees to better understand and develop their
career skills and interests and to use these skills and interests most effectively within the company
and after they leave the company. (Dessler et al, 2011:347)
7.2.2 Careers and Career Planning
Dessler et al say that career means the occupational positions a person has had over many
years. When some people look back on their careers, they know that they achieved what they
were capable of achieving, and that their career goals were satisfied. Others are less fortunate and
feel that, at least in their careers, their lives and their potential went unfulfilled. Many employers
know this and they work hard to support their employees career needs (Dessler et al, 2011:347).
Dessler et al, (2011:347-348) further point out that:
The ground rules of careers have changed due to recessions, mergers, outsourcing,
consolidations and more or less endless downsizings
Today, careers differ in other ways from a few years ago such as:
o More women are pursuing professional and managerial careers
o Challenges associated with dual career pressures must be balanced by families
It seems that what people want from their careers is changing. Examples are:
o Baby boomers tend to be job and employer-focused, and are retiring in the next few
years
o Work arrangements that provide more opportunities for balanced lives are now often
valued by those entering the job market
These changes have huge implications for employers. A few years ago, the assumption (the
psychological contract) between employer and employee was, often, Be loyal to us, and well
take care of you. Today, employees know they must take care of themselves. The psychological
contract is more like, Ill do my best for you, but I expect you to provide the development and
learning that will prepare me for the day I must move on, and for having the work-life balance that I
desire. (Dessler et al, 2011:348)

7.2.3 Career Development
Dessler et al (2011:348) point out that 90% of employees who terminated their services at a
company called Hartford IT talked about (the lack of) career and professional development and
the level of support their managers gave them in this area.
Developing ones career is to the benefit of the individual and the organisation. Developing ones
career is a continuous process, and, with career planning, is part of career management. Career
development includes obtaining the required education, training, developing skills, craftsmanship,
and even changing careers. Factors that may influence career development include personal
characteristics, socioeconomic factors, physical and mental abilities and chance factors.
Mattoon (nd: 1) points out the following on career development:
Career development is an ongoing process;

Be focused on the process as you approach a career and progress through it;
It helps you to take stock of who you are and where you want to go in life; and
Assess your situation and your goals frequently in order to achieve growth, continue
learning, and achieve momentum in your career, otherwise you doom yourself to the fate of
a robot working a daily routine.
7.2.4 Career Planning and Development
Read the following and answer the questions that follow.
Career Planning and Development What is Career Planning?
"Career development questions you can ask yourself are:
Where do I want to be in my career at the end of this year? What job would I like to retire
from? It's O.K. to think about next month or even 30 years from now. You cant achieve
career development without having a goal.
Do I like the field Im working in? Career development doesnt mean you have to develop
the career you currently in, but can also mean changing careers, even changing
environments. Perhaps youve always wanted to work in the big city. You can start
thinking now about finding jobs in New York or jobs in Philadelphia. Remember, it is your
career, your life, your choices. Answer your questions honestly (there are no rights or
wrongs!) and reconsider the questions from time-to-time as your desires may change.
What would I like to learn more about? If you have strong interests in a particular area,
you also probably have strengths and talents in that area. Your desire to learn more about
a certain subject or field will propel you faster in your career. Find your niche!

Once you've answered these and other important questions about your career, it is time to come
up with solutions. For instance, if your ultimate goal is to become a chief financial officer in a large
corporation, you'll need to map out the way to get there.
What will you need to do to qualify for such a position?

What kind of education and certifications are typically required?
What do the backgrounds of those who have achieved this position look like?
Which organisations are important to belong to? How can you network with other financial
professionals?
What steps will you need to take to move in this direction and what goals will you need to
set to reach this goal by a certain time?
Your goals and solutions need to be very specific. This isn't to say that you can't revisit your
planning and development and make adjustments (after all, life isn't 100% predictable and we are
not, in fact, robots) but writing out your career plan will make your goals more attainable because
they become concrete and will remind you of the steps necessary to achieve what you desire."
(Careercentre, 2011:1)
Answer the task questions below.
Task Questions
1. Define career planning.

2. What is the aim of career planning?
Careercentre (2011:1) points out that career planning is "an ongoing process that can help you
manage your learning and development." In other words it is a continuous process in which an
employee learns and develops his or her career in the work environment.
Many employers have added a career element to their human resource activities, because of the
many changes in careers and the world of work. Employers use human resource activities not only
to support the employers needs, but also to facilitate career self-analysis and development.
Dessler et al (2011:348) point out that appraisals are not only used to align the employees
performance with the jobs standards, but to help the employee to better make and adjust his or
her career plans. Table 1 compares the traditional with the career development focus.

TABLE 1: TRADITIONAL VERSUS CAREER DEVELOPMENT FOCUS
HR activity Traditional focus Career development focus

Analyses jobs, skills, task present Adds information about individual
Human resource planning and future. Projects needs. Uses interests, preferences etc, to
statistical data. replacement plans.
Matching organisations needs with Matches individual and jobs based on

Recruiting and placement qualified individuals. variables including employees career
interests and aptitudes.
Provides opportunities for learning Provides career path information. Adds

Training and development skills, information and attitudes individual development plans.
related to job.
Rating and or rewards. Adds development plans and individual

Performance appraisal
goal setting.
Rewards for time, productivity, talent Adds tuition reimbursement plans,

Compensation and benefits and so on. compensation for activities not related
to work.
(Dessler et al, 2011:348)
7.2.5 Career Management
Career development and career planning are all part of career management. Mattoon (nd:1) says
that "you are in charge of your career and personal development". Employers will not, as a matter
of course, make sure you are keeping up with current trends, skill development, and other things
necessary. They will do so only as far as it suits their own needs. You must take control by
assessing, developing, planning and maintaining an upward track if your personal career goals do
not align with your employer's career opportunities.
Your career will be affected by many things both at your place of employment and outside it (who
you meet, courses you take, decisions you make). Manage your career by constantly coming back
to your development plans, looking at your goals, and re-answering your questions.
As you take unexpected turns in your path, you may need to come up with new solutions. If you
follow a career plan, you will still be moving onwards and upwards.

According to Swanepoel et al, (2008:399) career management entails a number of things, namely:
Career management is an ongoing process. People gain self-insight in relation to the world
of work and employment;
Personnel accordingly plan to match their own interests, talents, values, preferences etc
with alternative work roles;
Personnel consider alternatives to implement career development plans. These career
development plans can include joining organisations or starting a business;
Personnel take charge of executing the paths chosen and developing their careers;
By obtaining feedback personnel actively monitor and adjust what they do and how their
career paths unfold; and
Personnel try to make the most of their lives through meaningful work and careers.
7.2.6 Career Planning Process
A career planning process is illustrated in Figure 2.
FIGURE 2: CAREER PLANNING PROCESS
Knowing
yourself
Skills, likes,
dislikes and
values
Taking
action Finding out
Exploring
Working
towards what is out
there
your goals
Making
decisions
Comparing
options
(Careercentre, 2011:10)
As we said earlier, career planning is an ongoing process that can help you manage your learning
and development. The four-step career planning process can be used whether you are adding on
skills or changing your job or career.

Careercentre (2011:1) explains that career planning is the continuous process of:
Thinking about your values, skills, interests, and preferences;

Exploring the life, work and learning options available to you;
Ensuring that your work fits with your personal circumstances; and
Fine-tuning your work and learning plans continually to help you manage the changes in
your life and the world of work.
Throughout your career, you can revisit and make use of this process. The four steps in career
planning will now be explained. You can start at the step that is most relevant for you.
Step 1: Knowing yourself
Begin the process by thinking about where you are now, where you want to be and how you are
going to get there. Work on getting to know your skills, interests and values once you have thought
about where you are at now and where you want to be. You can begin by asking yourself the
following questions:
Where am I at now?
Where do I want to be?
What do I want out of a job or career?
What do I like to do?
What are my strengths?
What is important to me?
You will have a clearer idea of your work or learning goal and your individual preferences at the
end of this step. This information about yourself can be used as your personal wish list against
which you can compare all the information you gather in step 2 (finding out). At this point your
personal preferences are useful for helping you to choose your best option, which you can do in
step 3 (making decisions).
Step 2: Finding out
In this step you explore the occupations and learning areas that interest you. You can research the
specific skills and qualifications required for those occupations once you have some idea of your
occupational preferences.
Ask yourself, How do my skills and interests match up with these occupations? Explore
occupations that interest you.
Where are the gaps?
To gain these skills or qualify for these occupations, what options do have?
What skills do I need?
Where is the work?
You will have a list of preferred occupations and or learning options at the end of this step.

Step 3: Making decisions
In this step, compare your options, narrow down your choices and think about what suits you best
at this point in time. Ask yourself the following questions:
What are my best work or training options?

How do these options match with my skills, interests and values?
How do these options fit with the current labour market?
How do these options fit with my current situation and responsibilities?
What are the advantages and disadvantages of each option?
What will help and what will hinder me?
What can I do about it?
You will have narrowed down your options and have more of an idea of what you need to do next
to help you achieve your goals at the end of this step.
Step 4: Taking action
The steps are planned that you need to take to put your plan into action. To create your plan use
all you have learnt about your skills, interests and values together with the information you have
gathered about the world of work. Ask yourself:
What actions or steps will help me to achieve my work, training and career goals?
Where can I get help?
Who will support me?
At the end of this step you will have:
A plan to help you explore your options further (eg work experience, work shadowing or
more research); or
A plan that sets out the steps to help you achieve your next learning or work goal.
Start from the step that is relevant for you.

7.2.7 Career Development Plan
When making a career plan two questions should be asked, namely:
How should the HR professional or manager help staff to plan their careers? and
Why is it important for the organisation?
The acid test for any career development programme is The most attractive proposition an
employer can make today is that in five years the employee will have more knowledge and be
more employable than now (Dessler et al, 2011:349). Career development-oriented programmes
need not be complicated. For most employees it is enough to receive performance feedback, to
have individual development plans and to have access to non-technical skills training.
In one survey about a quarter of the respondents even had individual development plans. Figure 3
illustrates a simple career development plan.

FIGURE 3: CAREER DEVELOPMENT PLAN
Employee:____________________________ Position:__________________________________
Manager:_____________________________
Department:___________________________
Date of appraisal:_______________________
1. What is the next logical step up for this employee, and when do you think he or she will be ready for it?
Probable next job When ready:

Now 6 months 1 Year 2 Years
1.
2.
3.
2. What is the highest probable promotion within five years?

3. What does this employee need to prepare for promotion?
Knowledge:_____________________________________________________________________
______________________________________________________________________________
Action plan:_____________________________________________________________________
______________________________________________________________________________
Still training:_____________________________________________________________________
______________________________________________________________________________
Action plan:_____________________________________________________________________
______________________________________________________________________________
Management
training:_____________________________________________________________________
______________________________________________________________________________
Action plan:_____________________________________________________________________
______________________________________________________________________________

We now discuss these questions raised above. The first question was: How should the HR
professional or manager help staff to plan their careers?
HR professionals or the manager should:
o Support the employees career development that may boost employee commitment.
o Support recruitment and retention efforts.
o Provide timely and accurate performance feedback.
o By participating in career development discussions with subordinates.
o Provide developmental assignments and support.
o Support employee development plans.
o Through induction and training the manager can assist staff to get off to a good start.
o Mentoring staff.
The second question was: Why is career planning important for the organisation?
It is important for the organisation because employees who are equipped with better
insights about their occupational strengths should be better equipped to serve the
organisation. Khurana, Khurana and Sharma (2009:78) point out the following career
planning benefits for the organisation:
o Career planning tries to strike a happy balance between individual career needs and
organisational workforce requirements;
o An organisation may be ensured of a supply of qualified, committed employees to
replace the higher-level employees, by developing employees for future positions;
o It helps the organisation to reduce the labour turnover and absenteeism;
o Cordial relations between the employer and employee can be maintained through
career planning; and
o There will be an expanded image of the organisation as a people developer.
Develop a Career Plan
1. Complete the career developing plan template and develop a career plan for an administration officer in an
organisation.
2. From an organisation perspective, is the career developing plan template effective and practical?
3. What will you delete or add in the career developing plan template? Substantiate your comments.

7.2.8 Career Management Methods
Table 2 lists possible employer career planning and development practises that can be used in an
organisation.
TABLE 2: POSSIBLE EMPLOYER CAREER PLANNING AND DEVELOPMENT PRACTICES
Job postings Formal education and or tuition reimbursement

Performance appraisal for career planning Counselling by manager
Lateral moves and or job rotations Counselling by HR
Pre-retirement programmes Succession planning

Formal mentoring Common career paths
Dual ladder career paths Career booklets and or pamphlets

Written individual career plans Career workshops
Assessment centre Upward appraisal
Appraisal committees Training programmes for managers

Induction programmes Special needs (highfliers)
Special needs (dual-career couples) Diversity management
Expatriation and or repatriation

(Dessler et al, 2011:351)
7.2.9 Key Points
This section focussed on career planning and the development of a career plan. The next section
will focus on the development of job descriptions. Key points in this section are:
The formal process through which someone becomes aware of his or her personal skills,
interests, knowledge, motivations and other characteristics; acquires information about
opportunities and choices; identifies career-related goals; and establishes action plans to
attain specific goals is known as career planning.
Developing ones career is to the benefit of the individual and the organisation.
There are differences between the traditional focus and the career development focus.
Career management is a process for enabling employees to better understand and develop
their skills and interests and to use these skills and interests most effectively within the
organisation and after they leave the organisation.
The career planning process consists out of knowing yourself, finding out, making decisions
and taking action.
A career development plan has benefits for the individual and the organisation.

7.3 J OB D ESCRIPTION
Learning outcome Develop job descriptions.
Recommended book
Recommended
All items on list of recommended articles
articles
Recommended
multimedia
This section explains job descriptions and the development of job descriptions as a function of
Section overview
the HR department.
7.3.1 Introduction
Amos et al (2012:104) say, the process of determining what a job entails is known as job
analysis. The content of a job is determined by a job analysis. Job analysis identifies the tasks
that make up the job, together with the skills, abilities, and responsibilities required of an individual
to accomplish the job successfully. A job description and a job specification are two main elements
of job analysis.
Heathfield (2014:1) says:
Job descriptions help you articulate the most important outcomes you need from an
employee performing a particular job;
They set out where one persons job leaves off and anothers starts;
Job descriptions tell employees where their job fits within the overall department and the
overall company;
Job descriptions help employees from other departments, who must work with the person
hired, understand the boundaries of the person's responsibilities; and
They are integral elements of the performance development planning process.
Watch the video clip on job descriptions.
Goldberg, S. 2012, How to write a job description template sample,

https://www.youtube.com/watch?v=gjeADZnUNDw (accessed 15 September 2015).

7.3.2 Job Description
A job description is a statement of the content of a job (Amos et al, 2012:104). The particulars
that should be included in a job description are:
Job title;
Department and location within the organisation;
Job summary main purpose of job;
Tasks, duties, and responsibilities, including ad hoc or occasional requirements;
Working conditions;
Materials used;
Limitations on authority;
Responsible to ___________ (job title of immediate superior);
Supervision provided or received; and
Risks associated with the job.
(Today Cut, nd: 1) says that a job description is a list of duties and responsibilities that are required
to perform a particular job, and includes information such as:
Job title;
Roles and responsibilities;
Qualification;
Salary range;
Skills; and
Goals.
It is crucially important for an organisation to write a good job description, because the outcome of
hiring an employee greatly depends on the available job description.
When hiring staff, the goal is to find the brightest, most competent, flexible, reliable, multifaceted
employees you can find. According to Heathfield (2014:1), if a job is not viewed as a straitjacket, it
helps your recruiting in several ways. The author further says that:
A job description causes the manager of the position and other employees already
performing the job to agree on the responsibilities and scope of the position;
A job description informs candidates about the duties and responsibilities of the position for
which they are applying;
A job description informs employees who are assisting with the interview process about the
questions to ask candidates and what you seek in the new employee; and
A job description may protect you legally when you can demonstrate why the candidate
selected for a position was your most qualified and culturally suited applicant.

7.3.3 Job Analysis
Job analysis is the first step in writing a job description. A job analysis entails that in-depth
information is gathered about the general tasks, functions, duties, responsibilities and outcomes of
a particular job. The content for the job is developed and later shared with the employee to make
him or her aware about his or her duties and responsibilities. Figure 4 illustrates the job analysis
process and the differences between a job description and a job specification.
FIGURE 4: JOB ANALYSIS
Job Analysis
Job Description Job Specification
Job title Qualifications

Job location Experience
Job summary Training
Reporting to Skills
Working conditions Responsibilities
Job duties Emotional characteristics
Machines to be used Sensory demands
Hazards
(Today Cut, nd:1)
Job description and job specification are two outcomes of a job analysis. Todaycut.com (nd:1)
points out the following tasks in the job analysis process:
Review the job responsibilities of current employees;

Collect information about job responsibilities and duties from external sources, including
the internet;
Analyse the tasks of the employee the duties and responsibilities; and
Verbalise the outcome or contributions required from the position.
It is important to remember that an effective job description can be written only if you analyse the
job properly. When performing a job analysis, gather as much information as you can.

7.3.4 Job Specification
A job specification is a statement about the personal characteristics required to perform the job
successfully and to achieve the necessary output. A job specification tells HR what knowledge,
skills, education, experience and capabilities you seek in your new employee, so that an effective
recruiting plan can be formulated. The components of a job specification are:
Training and or qualifications. Includes what degree, diploma, training or certification are
required for the job;
Knowledge;
Total experience: the number of years of experience required to perform the job;
Required skills include physical, emotional, technical, and communication skills required to
perform a job, and also responsibilities involved in a job; and
Extraordinary demands on sensory perception (sight, smell, hearing).
Job description and job specification are two integral parts of job analysis, and help both employer
and employee to understand the job requirement. Both documents are very important to find the
best fit for the available job.
Task Questions
1. Develop a job description for the appointment of a secretary to the CEO of a company.
2. Develop a job specification for the secretary.
7.3.5 Key Points
Job descriptions should be developed to provide employees with a compass and clear direction.
Job descriptions can be used for recruiting and hiring as well as for the developing plan of the
employee. The key points in this section are:
Job analysis is the process of determining what a job entails;

Job description is a list of duties and responsibilities that are required to perform a
particular job, and includes information such as job title, roles and responsibilities,
qualification, salary range, skills and goals;
A job specification is a statement about the personal characteristics that are required to
perform the job successfully and to achieve the necessary output; and
Components of a job specification are training, qualifications, knowledge, experience, skills
and extraordinary demands.

7.4 L ABOUR R ELATIONS
Learning outcome Review the implications of labour legislation on an organisation.
Recommended book

http://www.plato.org.za/pdf/legislation/Basic%20Conditions%20of%20Employment%20Act
%2075%20of%201997.pdf (accessed 15 September 2015).
http://www.labour.gov.za/DOL/downloads/legislation/acts/compensation-for-occupational-
injuries-and-diseases/Act%20-
%20Compensation%20for%20Occupational%20Injuries%20and%20Diseases.pdf
http://www.labour.gov.za/DOL/downloads/legislation/acts/compensation-for-occupational-
injuries-and-diseases/amendments/Amendment%20-
%20Compensation%20for%20Occupational%20Injuries%20and%20Diseases%201997.p
df (accessed 15 September 2015).
Recommended
http://www.justice.gov.za/legislation/constitution/SAConstitution-web-eng.pdf (accessed 15
articles
September 2015).
Employment Equity Act No. 55 of 1998, http://bee.b1sa.co.za/docs/The Employment
Equity Act 1998.pdf (accessed 15 September 2015).
Labour Relations Act and Amendments,
www1.chr.up.ac.za/undp/domestic/docs/legislation_30.pdf (accessed 15 September
2015).
http://www.polity.org.za/article/occupational-health-and-safety-amendment-act-act-181-of-
1993-1993-08-21 (accessed 15 September 2015).
Public Holiday Act, No. 36 of 1994,
http://www.gov.za/sites/www.gov.za/files/Act36of1994.pdf (accessed 15 September 2015).
Public Holidays Amendment Act, No. 48 of 1995,
http://www.gov.za/sites/www.gov.za/files/a48-95.pdf (accessed 15 September 2015).
Skills Development Amendment Act, No. 26 of 2011, http://www.polity.org.za/article/skills-
development-amendment-act-2011-act-26-of-2011-2012-03-28 (accessed 15 September
2015).

DAV Professional Placement Group. 2013, Changes in the South African labour legislation
are you ready? http://www.youtube.com/watch?v=Z0pgPMIUf24 (accessed 15 September
2015).
Recommended
Mindset Learn. 2013, Revision: industrial relations,
multimedia:
https://www.youtube.com/watch?v=78SR_nKwGC8, (accessed 15 September 2015).
CNBCAfrica. 2013, South Africas labour laws,
https://www.youtube.com/watch?v=QhUb3I3nbww, (accessed 15 September 2015).
Section overview: This section investigates labour legislation and its impact on an organisation.
7.4.1 Introduction
This section is geared for South Africa. International students can use South African legislation as a
guide, but should research legislation in their countries and assess its implications there.
As a field of practice labour relations cannot be avoided in the workplace. Amos et al (2012:78)
point out that labour relations began when the first individual approached another to perform a task
with the promise of being remunerated. Today, labour relations is an ever-changing system of
interrelationships between the state, the employer, and the employee.
Labour relations for the business owner or manager concern the employment relationship and the
laws, rules, regulations, structures, and procedures governing that relationship. It is about people.
Mullins (1994) in Amos et al (2012:78) points out: "there are many aspects to management in work
organisations, but the one essential ingredient of any successful manager is the ability to manage
people effectively." The process of managing people involves understanding people and their
values, norms, and needs, and understanding the generation, handling, and outcomes of conflict.
Labour relations also involves understanding the power and trust underpinning the tripartite
relationship (see Figure 1) between the state, the employer, and the employee, and the
cooperation and compromise that are indispensable in the search for solutions.
As a field of practice labour relations cannot be avoided in the workplace. Amos et al, (2012:78)
point out that labour relations have originated when the first individual approached another to
perform a task with the promise of being remunerated. Today, labour relations is regarded an ever-
changing system of interrelationships between the state, the employer, and the employee.
Mullins (1994) in Amos et al, (2012:78) points out: "there are many aspects to management in
work organisations, but the one essential ingredient of any successful manager is the ability to
manage people effectively."

Answer the following questions.
Task Questions
Research relevant legislation in your own country.

What is the purpose of labour legislation?
What gaps can you identify in the legislation?
Labour legislation's purpose is to protect employers and employees through balancing the power
between the parties in the employment relationship (Amos et al, 2012:25). The Labour Relations
Act and its amendments are meant to promote economic development, social justice, labour
peace, and democracy in the workplace (Dessler, et al 2011:386).
Bendix (2010:11-12) points out that a tripartite relationship exists in the private sector between
employers, employees and the state, as illustrated in Figure 5.
FIGURE 5: THE NATURE OF LABOUR RELATIONS
State (Employer)
Labour
Rela+ons
Employees Trade Union(s)
(Amos et al, 2012:78)
In labour relations literature, the labour relationship is traditionally described as a tripartite

relationship between employers, employees and the state. In this relationship, the state protects
the rights of both employers and employees. The relationship between the employer and the
employee is often called the primary employment relationship, where the state fulfils a supportive
role. On the other hand, the relationship between state, employee and employer is often called the
secondary employment role. In the public sector the state is the employer.

The states role is to facilitate the labour relationship between employer and employee. This is
done by developing and implementing a framework of laws and policies regarding the labour
relationship.
Watch these video clips on labour relations:
DAV Professional Placement Group. 2013, Changes in the South African labour legislation
are you ready? http://www.youtube.com/watch?v=Z0pgPMIUf24 (accessed 15 September
2015).
Mindset Learn. 2013, Revision: industrial relations,
https://www.youtube.com/watch?v=78SR_nKwGC8, (accessed 15 September 2015).
CNBCAfrica. 2013, South Africas labour laws,
https://www.youtube.com/watch?v=QhUb3I3nbww, (accessed 15 September 2015).
7.4.2 Labour Legislation in South Africa
Various acts regulate human resources management. You can find them through these hyperlinks:

http://www.plato.org.za/pdf/legislation/Basic%20Conditions%20of%20Employment%20Act%2075%2
0of%201997.pdf (accessed 15 September 2015).

http://www.labour.gov.za/DOL/downloads/legislation/acts/compensation-for-occupational-injuries-
and-diseases/Act%20-
%20Compensation%20for%20Occupational%20Injuries%20and%20Diseases.pdf (accessed 15
September 2015).
http://www.labour.gov.za/DOL/downloads/legislation/acts/compensation-for-occupational-injuries-
and-diseases/amendments/Amendment%20-
%20Compensation%20for%20Occupational%20Injuries%20and%20Diseases%201997.pdf

http://www.justice.gov.za/legislation/constitution/SAConstitution-web-eng.pdf (accessed 15
September 2015).
Employment Equity Act No. 55 of 1998, http://bee.b1sa.co.za/docs/The Employment Equity Act


Labour Relations Act and Amendments, www1.chr.up.ac.za/undp/domestic/docs/legislation_30.pdf

http://www.polity.org.za/article/occupational-health-and-safety-amendment-act-act-181-of-1993-
1993-08-21 (accessed 15 September 2015).
Public Holiday Act, No. 36 of 1994, http://www.gov.za/sites/www.gov.za/files/Act36of1994.pdf
Public Holidays Amendment Act, No. 48 of 1995, http://www.gov.za/sites/www.gov.za/files/a48-

Skills Development Amendment Act, No. 26 of 2011, http://www.polity.org.za/article/skills-

development-amendment-act-2011-act-26-of-2011-2012-03-28 (accessed 15 September 2015).
The Department of Labour administers labour legislation in South Africa, and has branches
throughout the country. Answer the following question.
What Is the Purpose of Labour Legislation?
Compare your answer with the explanation below.
Amos et al (2012:25) explains that the purpose of labour legislation is to protect employees and
employers through balancing the power between the parties in the employment relationship.
South African labour law is a rich mixture of the application of the common law contract of
employment and a wide variety of statutory laws (Acts passed by Parliament). Where the law is not
codified in the form of statutory laws, the common law applies, particularly with regard to the
individual contract of employment. The employment relationship is influenced by collective
agreements that arise out of collective bargaining between employers or employer organisations on
the one hand, and employees or trade unions on the other. (Amos et al, 2012:25)
The states involvement in the labour market may vary from minimal to maximal intervention. This
depends on the system of government and state policy. However, in the public sector the state in
itself is the employer. In its capacity as employer, the state has to separate itself from its other role
as the protector of employee rights. The government has achieved this by introducing the same
legislation for both private and public employees (Bendix, 2010:11-12).

Historically, the issue of the state as an employer has been a difficult one in South African
legislation, with early acts such as the 1956 Labour Relations Act explicitly excluding public
servants. The Public Service Labour Relations Act, No. 105 of 1995, and the Education Labour
Relations Act, No. 146 of 1993, were meant to address these disparities.
The three acts mentioned above were repealed by the Labour Relations Act, No. 66 of 1995. This
act sought to create a common standard for the governance of employment relationships in both
the private and the public sectors alike, without distinguishing between any categories of
employee (Venter, 2003:10).
This act has been subject to various amendments over the years. We study the Labour Relations
Act and its amendments in more detail later in this study guide.
Figure 6 depicts the South African labour law framework.
FIGURE 6: SOUTH AFRICAN LABOUR LAW FRAMEWORK
Statutory Law:
Constitution of the Republic of South Africa

Labour Relations Act
Basic Conditions of Employment Act
Unemployment Insurance Act
Common law contract of employment Occupational Health and Safety Act
Compensation for Occupational Injuries and
Diseases Act
Public Holidays Act
Employment Equity Act
Skills Development Act
Skills Development Levies Act
(Amos et al, 2012:26)
Hyperlinks to these acts are provided above.
Labour Law Framework
Foreign students: find out what the relevant legislation is in your country. What does labour legislation mean for mean
for organisations in your country? How does the legislation differ from South Africas labour legislation?
The common law and labour legislation are now explained in outline.

Common law contract of employment
The basis of the employment relationship is formed by the common law contract of employment,
but is subordinate to the statutory laws. The contract of employment is an agreement whereby the
employee agrees to make his or her personal services available to the employer, to perform duties
defined by the employer under the employer's supervision in return for an agreed wage for a fixed
period until termination of services.
Constitution of the Republic of South Africa, 1996
The constitution, which was signed by President Nelson Mandela on 16 December 1996, came
into effect on 4 February 1997. An important part of this constitution is the Bill of Rights (Chapter
2), which the fundamental rights afforded to all South Africans.
The first right mentioned in this chapter is the right to equality. It says that all must be equal before
the law and all must be entitled to equal protection of the law. Section 9 (2-5) further says that:
(1) Equality includes the equal enjoyment of all rights and freedoms. To promote the
achievement of equality, legislative and other measures designed to protect or advance
persons, or categories of persons, disadvantaged by unfair discrimination may be taken.
(2) The State may not unfairly discriminate directly or indirectly against anyone on one or
more grounds, including race, gender, sex, pregnancy, marital status, ethnic or social
origin, colour, sexual orientation, age, disability, religion, conscience, belief, culture,
language and birth.
(3) No person may unfairly discriminate, directly or indirectly, against anyone on one or
more grounds in terms of subsection 3. National legislation must be enacted to prevent
or prohibit unfair discrimination.
(4) Discrimination on one or more of the grounds listed in subsection 3 is unfair unless it is
established that the discrimination is fair.
It is thus clear that the government is very serious about removing any discrimination and laying
the foundations for a democratic and open society.
Other rights in chapter 2 that should also be mentioned are:
The right to freedom of conscience, religion, thought, belief and opinion;

The right to freedom of expression;
The right to assemble, to picket and demonstrate with others peacefully and unarmed and
to present petitions;
The right to freedom of association;
The right to freely engage in economic activity and to pursue a livelihood anywhere in the
national territory;
The right to fair labour practices; and
The right to use the language and to participate in the cultural life of ones choice.
Only decisions made by the Constitutional Court regarding issues related to these rights will give
us some direction on how these rights will be dealt with in the future.

Labour Relations Act, No. 66 of 1995
The Labour Relations Act (No. 66 of 1995) as amended by the Labour Relations Amendment Acts
(No. 12 of 2002 and No. 6 of 2014) recognises the right of workers to strike and the right of
employers to lock out. The act grants workers the right to participate in decision-making processes
in the workplace. It also proposes a variety of effective, procedurally simple and affordable ways to
resolve disputes in the workplace. The act also provides several collective bargaining frameworks
(Dessler et al, 2011).
The purpose of the Labour Relations Act is to change the law governing labour relations in South
Africa. The act:
Gives effect to section 23 of the constitution, which promises fair labour practices to all;
Regulates the organisational rights of trade unions;
Promotes and facilitates collective bargaining at the workplace and at sectorial level;
Regulates the right to strike and the recourse to lockout in conformity with the constitution;
Promotes employee participation in decision-making through the establishment of
workplace forums;
Provides simple procedures for the resolution of labour disputes through statutory;
conciliation, mediation and arbitration (for which purpose the Commission for Conciliation,
Mediation and Arbitration was established), and through independent alternative dispute
resolution services accredited for that purpose;
Establishes the Labour Court and Labour Appeal Court as superior courts, with exclusive
jurisdiction to decide matters arising from the act;
Provides for a simplified procedure for the registration of trade unions and employers'
organisations, and provides for their regulation to ensure democratic practices and proper
financial control;
Gives effect to South Africas public international law obligations relating to labour relations;
Amends and repeals certain laws relating to labour relations; and
Provides for incidental matters.
The Labour Relations Act applies to every employer and every employee in every undertaking,
industry, trade or occupation in South Africa, excluding only:
Members of the National Defence Force;

Members of the National Intelligence Agency; and
Members of the South African Secret Service.
The act promotes self-governance and voluntarism in labour relations. Voluntarism implies that any
lawful agreements reached between a union and an employer may take precedence over a related
provision in the act. Further, the act potentially simplifies the law for small businesses by allowing
them to apply for exemptions from centralised collective agreements.

The amendments to the Labour Relations Act made by the Labour Relations Amendment Act, No.
6, of 2014 came into effect on 1 August 2014, and aim to:
Facilitate the granting of organisational rights to trade unions that are sufficiently
representative. Such unions may exercise organisational rights such as:
o Access to the employer's premises
o Having trade union fees deducted from members pay
o Staff members becoming trade union representatives
o Receive information from the company
o Leave for trade union activities
Strengthen the status of picketing rules and agreements;
Amend the operation, functions and composition of the essential services committee and
to provide for minimum service determinations;
Provide for the Labour Court to order that a suitable person be appointed to administer a
trade union or employers' organisation;
Enable judges of the Labour Court to serve as a judge on the Labour Appeal Court;
Further regulate enquiries by arbitrators;
Provide greater protection for workers placed in temporary employment services. Workers
may not be treated unequally from any other employee performing the same or similar
work. Temporary employment and fixed term contract work should not exceed three
months. Barring a few exceptions identified in the act, such employees are entitled to the
same benefits and conditions as employees employed permanently;
Regulate the employment of fixed-term contracts and part-time employees earning below
the earnings threshold determined by the minister. The act makes provides additional
protection for employees earning below the Basic Conditions of Employment Act threshold
(R183 000 a year or less) such as flexibility that is retained during the first six months of
employment to allow for genuine temporary work and trial periods, and the right to be
treated on the whole not less favourably than standard employees after six months;
and
Further specify the liability for employers obligations. An employer includes one or more
persons who carry on associated or related activities or businesses by or through an
employer if the intent or effect of their doing so is or has been to defeat the purposes of
the act or any other employment law. If more than one person is held to be the employer
of an employee, those persons are jointly and severally liable for any failure to comply
with the obligations of an employer under the act or any other employment law.
The Labour Relations Amendment Act, No. 6 of 2014, took effect on 1 January 2015 with the
exception of section 37(c). South African businesses must comply with the new obligations created
in the act as listed above.

The Labour Relations Amendment Act imposes new obligations on firms, and requires them to
adjust the way they employ and manage staff. The Labour Relations Amendment Act:
Responds to increased informalisation of labour;

Is meant to ensure that vulnerable groups of employees receive adequate protection;
Relates to employees employed through a temporary employment service (TES) also
known as labour brokers and fixed-term employees. From 1 January 2015 these
employees will enjoy far greater protection than was previously available to them. The
right of employers to use labour brokers is restricted;
There are limitations on the new protections such as:
o The limitations apply only to persons earning below a certain income threshold
(currently R205 433.30 a year);
o Some smaller and start-up employers may be exempted in the case of fixed term
employees;
Amendments are primarily intended to limit the use of these employees to true short-term
contracts:
o To three months or less;
o To replace another employee who is temporarily absent; or
o To categories of employment lawfully characterised as suitable for such employees.
In section 198(b) the underlying principle is justifiability. Employers must be able to justify
fixing the duration of an employment contract. Employees will become permanent
employees (fixed term employees), or be deemed to be employees of the labour brokers
client if the employer fail to abide by the limitations;
The act amends the procedure for reviewing CCMA arbitration awards:
o It discourages litigants from instituting review applications as a tactical ploy to
frustrate or delay compliance with the award
o Section 145(5) of the Labour Relations Act has been amended to provide that a
person who institutes a review application must arrange for the matter to be heard by
the Labour Court within six months of commencing proceedings
o The court has been given the power to condone a failure to comply with this provision
on good cause shown
o Judges are required by section 145(6) to hand down judgment in review applications,
"as soon as reasonably possible". This provision reiterates the need for the speedy
resolution of review applications. Litigants must adhere to the timelines provided for
pleadings if review applications are to be finalised speedily
Patel (2014:1) explains: Hopefully, this will lessen the need felt by smaller unions to use industrial
action as the only route to obtain organisational rights previously ordained for more representative
unions only. In the current climate of violent strike action, any proposal that could result in the need
to use less strike action should probably be welcomed.
In terms of the act, employees have the right to picket at a place controlled by someone other than
their employer, provided that person has a say in the establishment of picketing rules.

Basic Conditions of Employment Act, 75 of 1997, amended by Act No. 11 of 2002
The aim of the Basic Conditions of Employment Act (BCEA) is to give effect to the right to fair
labour practices referred to in section 23(1) of the constitution by establishing and regulating basic
conditions of employment, and thereby complying with South Africas obligations as a member of
the International Labour Organisation.
The Basic Conditions of Employment Act sets the basic standards for the working conditions of
South Africans. The act governs matters such as:
Working time Deductions from pay

Overtime Termination
Annual leave Administration
Maternity leave Calculations, payment and documentation of wages
Sick leave Forced and child labour
Only volunteer workers and members of the National Defence Force, National Intelligence Agency
and South African Secret Service are excluded from this legislation.
The Basic Conditions of Employment Act (BCEA) has an effect on the individual employment
relationship, which is otherwise largely regulated by the common law. The BCEA contains certain
minimum standards below which an individual employer and employee may not go. In other
words, an employee and employer may not agree to terms and conditions of employment that are
less favourable to the employee than those contained in the BCEA. But the parties are free to
agree to terms and conditions of employment that are more favourable than those in the BCEA.
Matters dealt with in this act include working time, leave, remuneration, deductions, notice of
termination, administrative obligations, prohibition of the employment of children and forced labour.
After protracted negotiations in the National Economic Development and Labour Council (Nedlac)
during 1996-97, and the social partners having failed to reach agreement, the Basic Conditions of
Employment Bill of 1997 was nevertheless tabled in Parliament on 13 October 1997 by the
minister of labour, who said there was sufficient consensus among the Nedlac stakeholders for
the bill to be placed before Parliament. The act came into effect on 1 December 1998 in respect of
the private sector and became applicable to the public sector from 1 May 2000. This act replaces
the old Basic Conditions of Employment Act and the Wage Act, No. 5, of 1957.

Amendments made by the Employment Equity Act, No. 47 of 2013
Amendments made by the Employment Equity Act, No. 47 of 2013:
Substitute or amend certain definitions;

Regulate the prohibition of unfair discrimination against employees;
Regulate the certification of psychometric testing used to assess employees;
Provide for the referral of certain disputes for arbitration to the Commission for
Conciliation, Mediation and Arbitration;
Make further provision regarding the burden of proof in allegations of unfair discrimination;
Regulate the preparation and implementation of employment equity plans and the
submission of reports by designated employers to the director-general;
Regulate undertakings by designated employers to comply with requests by labour
inspectors;
Regulate the issuing of compliance orders;
Provide afresh for the assessment of compliance by designated employers with
employment equity and the failure of those employers to comply with requests and
recommendations made by the director-general;
Extend the powers of commissioners in arbitration proceedings;
Provide that fines payable under the act must be paid into the National Revenue Fund;
Extend the minister's power to issue a code of good practice and to delegate certain
powers;
Increase and provide for the increase by the minister of certain fines which may be
imposed under the act; and
Amend and provide for the amendment by the minister of annual turnover thresholds
applicable to designated employers.
You can find a commentary on the act and the act itself at the websites below.
Ramjettan, D. and Bandezi M. 2014, Employment Equity Amendment Act, No. 47 of

2013,http://www.polity.org.za/article/employment-equity-amendment-act-no-47-of-2013-2014-05-
14 (Accessed 21 September 2015).
Employment Equity Amendment Act,
http://www.labour.gov.za/DOL/downloads/legislation/acts/employment-
equity/eea_amend2014.pdf (accessed 21 September 2014).

Unemployment Insurance Act, No. 63 of 2001
There are two acts regulating the unemployment environment, namely the Unemployment
Insurance Act, No. 63 of 2001, and the Unemployment Insurance Contributions Act, No. 4 of 2002.
The legislation now covers more workers than in the past, the method of collecting contributions
and calculating benefits has changed, more severe consequences for noncompliance with the acts
have been introduced, and there is a new dispute resolution system.
The Unemployment Insurance Act provides for the payment of unemployment benefits, and the
Unemployment Insurance Contributions Act regulates the collection of contributions. Benefits are
paid to contributors to the Unemployment Insurance Fund (UIF) who become temporarily
unemployed because of:
The termination of the employee's services;

Illness;
Maternity; and
Adoption.
The UIF also pays benefits to the dependants of an employee who has died. Domestic and
seasonal workers, and persons employed for more than 24 hours a month, are covered by the
Unemployment Insurance Act. The act introduced a graduated benefit scheme under which the
percentage of remuneration paid out differs according to the employee's income. The benefits
range from about 60% of remuneration for lower income earners and 30% for higher earners.
It is compulsory for employers to register employees with the UIF and to make the required
contributions. Qualifying employees contribute 1% of their gross earnings to the UIF with the
employer also contributing 1%.
Payment must be made to the South African Revenue Service (SARS) if the employer is registered
with the SARS for PAYE or the skills development levy. Otherwise payment must be made to the
unemployment insurance commissioner.
Employees who are excluded from the Unemployment Insurance Act are:
Persons who do not fall within the definition of "employee" (eg the self-employed, the
informally employed and independent contractors);
Employees who are not contributors as defined;
Employees who receive remuneration under a learnership agreement;
Government employees;
Migrant workers who must be repatriated at the conclusion of their contracts of service; and
Employees employed for less than 24 hours per month.

The duties of an employer are:
Employers must register with the UIF as soon as the employer commences activities as an
employer. The employer can register online at http://www.labour.gov.za;
On or before the seventh of the following month a declaration must be submitted by the
employer to the UIF furnishing the details of all their employees; and
Employers of domestic workers and employers who are not required to register with SARS
for PAYE or skills development levy purposes continue to pay their contributions to SARS.
All contributions must be paid within seven das after the end of the month in respect of
which the contributions are payable.
Occupational Health and Safety Act, No. 85 of 1993
In terms of this act the employer:
Must provide and maintain a safe working environment that is without risk to health of
employees;
Must provide and maintain systems of work, plant, and machinery that are safe and without
risks to health;
Must take steps to eliminate or mitigate any hazard or potential hazard to the safety or
health of employees, before resorting to personal protective equipment;
Must make arrangements for ensuring the safety and absence of risks to health in
connection with the production, processing, use, handling, storage, or transport of articles
or substances;
Must establish the existing hazards to the health or safety of persons in the workplace and
establish what precautionary measures should be taken, and provide the necessary means
to apply such precautionary measures;
Must ensure the health and safety of employees at work by providing the necessary
instructions and training;
Must prevent any employee from doing any work unless the precautionary measures have
been taken;
Must ensure that Occupational Health and Safety Act requirements are adhered to by every
person in his or her employment or on premises under his or her control where plant or
machinery is used;
Must enforce measures as may be necessary in the interest of health and safety;
Must ensure that work is performed and that machinery or plant is used under the general
supervision of a person trained to understand the hazards associated with it, and who has
the authority to implement precautionary measures; and
Must inform employees of their duties.

In terms of this act the employee also has general duties at the workplace, which are:
To take reasonable care for the health and safety of themselves and of others;
To co-operate with the employer in order to fulfil any duty or requirement imposed by the
Occupational Health and Safety Act;
To carry out any lawful orders and obey the health and safety rules and procedures laid
down by the employer or by anyone authorised thereto by the employer, in the interest of
health or safety;
To report any situation which is unsafe or unhealthy as soon as possible to the employer or
to the health and safety representative; and
To report an incident to the employer or to anyone authorised thereto by the employer by
the end of the particular shift during which the incident occurred or as soon as possible
thereafter if the employee is involved in any incident which may affect his or her health or
which has caused an injury to him- or herself.
Compensation for Occupational Injuries and Diseases Act, No. 130 of 1993
The aim of this act is to provide for compensation for disablement caused by occupational injuries
or diseases sustained or contracted by employees in the course of their employment, or for death
resulting from such injuries or diseases. According to section 22(1) of the act, an employee who
meets with an accident resulting in disability (or in the case of death, his or her dependants) shall
be entitled to the benefits prescribed in the act. Compensation for disablement shall be calculated
in the basis of the following:
Lump sum 15 times the monthly earnings of the employee at the time of the accident
Monthly pension 75% of an employers monthly earnings (schedule 4 of the act).
The Compensation for Occupational Injuries and Diseases Act No.) replaced the Workmens
Compensation Act, No. 30 of 1941, and came into operation on 1 March 1994.
The rationale of the act is to provide employees (or their dependants in the case of an employees
death) with compensation without their having to prove fault on the part of their employer or any
other person (or the absence of fault on the employees part) and to set up a fund from which such
payments can be made. The logic of this scheme is that employees are regularly unable to prove
fault on the part of their employer (which makes a damages claim impossible), or that the injury or
death could be the result of fault on the part of the employee himself or herself (which would
likewise be fatal for any civil claim for damages).
By removing the fault requirement (which is an essential element of a civil claim for damages),
employees are guaranteed some compensation, provided that the injury, illness or death arose in
the course of their employment (employees who are being transported to or from work by a person
appointed by the employer to do so are also regarded as being at work). Further, by instituting a
fund, employees are protected from the possibility of their employer being insolvent or otherwise
unable to compensate them. The fact that the act caps the amount of compensation which can be
awarded and provides for intercession by the fund on behalf of the employer (an employee is
precluded from instituting a claim against his or her employer or any other party), protects
employers from potentially ruinous claims (although the caps on compensation can be seen as a
disadvantage from the employees point of view).
Public Holidays Act, No. 36 of 1994
Schedule 1 of the act, as reflected in Table 3, provides for the following paid public holidays:
TABLE 3: PUBLIC HOLIDAYS
1 January New Year's Day
21 March Human Rights Day
Friday before Easter Sunday Good Friday

Monday after Easter Sunday Family Day
27 April Freedom Day
1 May Workers' Day

16 June Youth Day
9 August National Women's Day

24 September Heritage Day
16 December Day of Reconciliation

25 December Christmas Day
26 December Day of Goodwill
This act specifies that whenever a public holiday falls on a Sunday, the following Monday is a
public holiday. Any of the statutory holidays in Table 3 can be exchanged for any other day by
agreement between employer and employee.
Employment Equity Act, No. 55 of 1998
The purpose of the Employment Equity Act, No. 55 of 1998, is to achieve equity in the workplace
by:
Promoting equal opportunity and fair treatment in employment through the elimination of
unfair discrimination; and
Implementing affirmative action to redress past inequalities in the workplace by promoting
the employment and promotion of individuals from previously disadvantaged backgrounds.
Implementing employment equity involves two key initiatives:
Eliminating unfair discrimination in human resource policies and practices in the workplace;
and
The design and implementation of affirmative action measures to achieve equitable
representation of designated groups in all occupational categories and levels in the
workplace.

Section 6 of the Employment Equity Act prohibits unfair discrimination against employees or job
applicants on one or more grounds of personal or physical characteristics such as race, gender,
sex, pregnancy, marital status, family responsibility, ethnic or social origin, colour, sexual
orientation, age, disability, religion, HIV status, conscience, belief, political opinion, culture,
language and birth. Prohibited grounds may not be taken into account in employment decision-
making. However, it is fair for them to be taken into account where they are relevant to either
affirmative action measures or the inherent requirements of a job.
The act also prohibits both direct and indirect unfair discrimination. Direct unfair discrimination is
easy to identify in the workplace because it makes a direct distinction on the basis of one or more
of the prohibited grounds. Indirect unfair discrimination (often called adverse impact or systemic
discrimination) on the other hand, is more difficult to recognise. Indirect unfair discrimination occurs
when a policy and practice appears to be neutral, but has a discriminatory effect or outcome for a
particular group of employees and cannot be justified.
The act is intended to achieve equity in the workplace by promoting equal opportunities and fair
treatment in employment through the elimination of unfair discrimination and implementing
affirmative action measures to redress the disadvantages in employment experienced by
designated groups (Africans, coloureds, Asians, women and people with disabilities) to ensure
their equitable representation in all occupational categories and levels in the workplace. The act
affects the following employer groups:
Employers who employ 50 or more employees;

Employers who employ fewer than 50 employees but whose total annual turnover equals
or exceeds the applicable turnover of a small business in terms of schedule 4 of the act;
An employer appointed by a collective agreement;
Municipalities;
Organs of the state except for:
o The National Defence Force
o The National Intelligence Agency
o The South African Secret Service
Employers who have 50 or more employees at the date on which the reports are due, are
required to report;
Chapter 3 of the act requires that employers take affirmative action measures to achieve
employment equity. These measures include:
o Employers must consult with unions and employees in order to make sure that the
employment equity plan is accepted by everybody
o Employers must analyse all employment policies, practices and procedures and
prepare a profile of their workforce in order to identify any problems relating to
employment equity
o Employers must prepare and implement an employment equity plan setting out the
affirmative action measures they intend taking to achieve employment equity goals
o Employers must report to the Department of Labour on the implementation of their
plan in order for the department to monitor their compliance
o Employers must display a summary of the provisions of the act in all languages
relevant to their workforce.

For the employer to be successful with the implementation of the act, a plan must be drawn up. A
number of steps can be followed in this regard and are briefly discussed:
Step 1. The first step in the process is to assign responsibility for the development,
implementation and monitoring of the plan to someone in the organisation. A senior
manager who reports directly to the CEO will be sufficient.
Step 2. Once a suitable person is employed or appointed, he or she should embark on a

process to make all employees are:
Aware of the content and application of the act;

Sensitive to employment equity and antidiscrimination issues;
Aware of the process to be followed; and
Aware of their role in the process.
This process can take place through a variety of methods, which could include one or more of the
following: pamphlets, newsletters, workshops, videos and training sessions. In particular,
managers should be informed of their obligations in terms of the act and be offered training in
diversity management and related skills.
Step 3. It is clear that this process cannot be carried out by the appointed manager alone but
should also involve stakeholders such as trade union representatives, and employees
from designated groups, non-designated groups and all occupational categories and
levels, as it affects everybody. A consultative forum or similar body should be
established for regular meetings between the parties.
Step 4. Having settled the above issues, the next step should be to assess the employment
policies, practices and procedures within the company in order to identify any barriers
that may exist, or practices factors that positively promote employment equity in the
workplace. It will also be necessary to determine the extent of under-representation of
employees from the designated groups in the various occupational categories and
levels of the companys workforce. The Department of Labour has identified the
following issues that should be reviewed:
All employment practices, such as recruitment, selection, pre-employment testing

and induction;
Practices related to succession and experience planning, and related promotions
and transfers;
Utilisation and job assignments; and
Current training and development methods and strategies, and access to training.

The amendments in the Employment Equity Act, No. 47 of 2013, are as follows:
Substitute or amend certain definitions;

Regulate the prohibition of unfair discrimination against employees;
Regulate the certification of psychometric testing used to assess employees;
Provide for the referral of certain disputes for arbitration to the Commission for
Conciliation, Mediation and Arbitration;
Make further provision regarding the burden of proof in allegations of unfair discrimination;
Regulate the preparation and implementation of employment equity plans and the
submission of reports by designated employers to the director-general;
Regulate undertakings by designated employers to comply with requests by labour
inspectors;
Regulate the issuing of compliance orders;
Provide afresh for the assessment of compliance by designated employers with
employment equity and the failure of those employers to comply with requests and
recommendations made by the director-general;
Extend the powers of commissioners in arbitration proceedings;
Provide for that fines payable in terms of the act must be paid into the National Revenue
Fund;
Extend the minister's power to issue a code of good practice and to delegate certain
powers;
Increase and provide for the increase by the minister of certain fines which may be
imposed under the act; and
Amend and to provide for the amendment by the minister of annual turnover thresholds
applicable to designated employers, and to provide for matters connected therewith.
Skills Development Act, No. 97 of 1998
The purposes of the Skills Development Act are eight-fold. These are to:
Develop the skills of the South African workforce;

Improve investment in training and development and increase return on investment;
Encourage employers to develop learning environments as well as to provide
opportunities for their employees to acquire new skills;
Encourage employees to participate in learnerships;
Improve the employment opportunities of individuals from previously disadvantaged
backgrounds and to generally improve the skills base of PDIs;
Ensure and control the quality of training in the workplace;
Help work-seekers find work and employers identify potential employees; and
Regulate employment services.
You can read more on these acts and their regulations at Acts Online http://www.acts.co.za/

Skills Development Levies Act, No. 9 of 1999
The purpose of this act is to regulate a compulsory levy scheme to fund education and training in
businesses in various sectors in South Africa. The act aims to expand the knowledge of the labour
force. This will increase the supply of skilled labour in South Africa, providing for greater
productivity and employability.
7.4.3 Implications of Labour Legislation for Organisations
There are various implications of labour legislation. Heydenrych (nd:1) points out that "If
companies do not approach the legislation with clear understanding, sustainable business
strategy, innovation and a reputable Temporary Employment Services (TES) partner, it could result
in decreased economic growth, greater pressure on profitability, a decline in job creation and
generate steps which ultimately, and perhaps unintentionally, increase inequality."
How does an organisation's understanding and subsequent strategy measure up when new labour
legislation is under way? John Botha, one of South Africas leading labour practitioners, says there
could be unquantifiable risk for the company's bottom line, and for the economy and society, when
companies get their application of labour legislation wrong, or have the wrong TES partner
(labour broker).
What matters is how the organisation interprets and manages labour legislation.
Not all labour consultants were party to the Nedlac process and negotiations, it leaves a gap for the
misinterpretation of certain amendments, which may prejudicially impact the human capital strategy
of businesses and undermine their sustainability. Organisations need to make sure they are informed
in order to make the correct decisions and to ensure that they retain their flexibility in uncertain and
often volatile trading and labour markets. (Heydenrych, nd:1)
Effects of Labour Legislation on Organisations
Discuss the implications of labour legislation on organisations.

7.4.4 Key Points
This section discussed various pieces of labour legislation and the implications they have for
organisations. The key points in this section are:
Labour relations for the business owner or manager concerns the employment relationship
and the laws, rules, structures, and procedures governing that relationship.
In labour relations literature, the labour relationship is traditionally described as a tripartite
relationship between employers, employees and the state.
The South African legal framework for labour relation consists of the following laws:
o Constitution of the Republic of South Africa
o Labour Relations Act
o Basic Conditions of Employment Act
o Unemployment Insurance Act
o Occupational Health and Safety Act
o Compensation for Occupational Injuries and Diseases Act
o Public Holidays Act
o Employment Equity Act
o Skills Development Act
o Skills Development Levies Act
If a company does not approach legislation with a clear understanding, sustainable
business strategy, and innovation it could result in:
o Decreased economic growth
o Greater pressure on profitability
o A decline in job creation
o Generate steps that ultimately, and perhaps unintentionally, increase inequality.

7.5 P ERFORMANCE M ANAGEMENT
Learning outcome Explore performance management and the use of performance appraisals.
Recommended book
Eales-White, R. 2012, Building high-performing teams rapidly, Industrial and Commercial

Recommended Training, 44 (7), 424-428,
articles www.emeraldinsight.com/doi/pdfplus/10.1108/00197851211268018 (accessed 15
September 2015).
Recommended
All items on the list of recommended multimedia
multimedia
After mastering this section you should be able to understand performance management and
Section overview:
the use of performance appraisals.
7.5.1 Introduction
Performance management is an approach to managing people, and comprises a set of practices

used by managers to plan, direct, and improve the performance of employees in line with
achieving the overall strategic objectives of the organisation (Amos et al, 2008:285). In order to
execute strategy and for the organisation to achieve its strategic objectives, it is critical to
effectively manage individual performance. The performance management process begins with the
translation of the overall strategic objectives of the organisation into clear objectives for each
individual employee. The performance management process is discussed later in this section.
Grobler, Bothma, Brewster, Carey, Holland and Wrnich (2011:230) point out that performance
systems typically involve:
Setting performance objectives;

Measuring performance against these objectives;
Identification of developmental support; and
Reviewing the process to develop performance and subsequent objectives.
Some performance management systems use surveillance technology to gather data about
workplace performance. Managers must ensure that these systems are ethically sound, and reflect
the principles of respect for the individual, procedural fairness, and transparency of decision-
making.

Watch the video clip on performance management.
Mennens, J. 2014, How to create a performance management system,

https://www.youtube.com/watch?v=8ijBfprUNuQ (accessed 15 September 2015).
Task Questions
Define performance management, and compare your answer to the definitions below.
Having watched the video on performance management system, design a performance management system for an
organisation.
Performance management is a process by which managers and employees work together to plan,
monitor and review an employee's work objectives and overall contribution to the organisation.
(Hrcouncil, 2014:1)
"Performance management is a process that begins with translating the overall strategic objectives of
the organisation into clear objectives for each individual employee." (Amos et al, 2012:286)
Performance management is more than just an annual performance review. It is a continuous

process of setting objectives, assessing progress and providing on-going coaching and feedback
to ensure that employees are meeting their objectives and career goals. To promote and improve
employee effectiveness is a fundamental goal of performance management. Hrcouncil (2014:1)
points out that before an organisation develops an effective management system, the organisation
should ensure that the HR management practices are in place to support the performance
management process. These practices are:
Well designed jobs and written job descriptions;

Effective supervision;
Comprehensive employee orientation and training; and
A positive and supportive work environment.
Read the following article on performance management.
Eales-White, R. 2012, Building high-performing teams rapidly, Industrial and Commercial

Training, 44 (7), 424-428, www.emeraldinsight.com/doi/pdfplus/10.1108/00197851211268018

7.5.2 Performance Management Process
The performance management process is illustrated in Figure 7.
FIGURE 7: PERFORMANCE MANAGEMENT PROCESS
Strategic business Performance Individual performance

objectives monitoring review
Organisation
structure
HR consequences
Rewards
T&D
Succession planning
Counselling and
discipline
Job design and profiling Individual
performance planning
Staffing
Job requirements
(Amos et al, 2008:286)
7.5.3 Benefits of a Performance Management Process
The benefits of an effective performance management process (Cornell 2009:1) are:
The process maximises staff engagement, development and performance;

The process is consistent across units in the organisation to enhance full development and
utilisation of talent;
It stays flexible, efficient, measurable, fair and transparent;
A better alignment of staff roles and goals with the organisation's mission can be provided;
The process can be a key component to an organisation's inclusion efforts;
Continuing and proactive succession management is promoted;
The process addresses the relationship of employees to the institution from recruitment,
through their growth and development, to the time they depart;
Employees engage and develop throughout the year;
Goals are established and performance is measured against those goals;
The process depends on the supervisor, who gives clear, developmental feedback; and
The process reviews past performance and goals and focuses on future development
opportunities that are aligned to individual, unit, and university goals.

FIGURE 8: THE PERFORMANCE MANAGEMENT PROCESS MODEL
PLAN
RECOGNIZE ASSESS
DEVELOP
We see from Figure 8 that performance management is a continuous process. Coaching is

present during all the phases. When managing performance, keep in mind the organisations
mission, vision and strategic goals, which are linked to the department and individual goals. The
phases are plan, assess, develop, and recognise.
Plan. During the plan phase the unit strategy and goals are established. The goals of the
employee and unit are aligned. Successful performance is defined.
Assess. On-going feedback and assessment occurs. Feedback is gathered and shared. An
annual performance dialogue takes place between the supervisor and employee.
Develop. An individual development plan (IDP) is prepared for every employee in the organisation.
The plan allows for professional job skills to be developed.
Recognise. Provide formal and informal appreciation. Provide opportunities to learn new skills.
Employees pay raises are based on performance, and opportunities exist for new jobs and
promotions.

7.5.4 Performance Appraisal
Examine the definition of performance appraisal below.
Performance appraisal is the systematic evaluation of the performance of employees and to

understand the abilities of a person for further growth and development. Performance appraisal is
generally done in systematic ways which are as follows:
The supervisors measure the pay of employees and compare it with targets and plans.
The supervisor analyses the factors behind work performances of employees.
The employers are in a position to guide the employees for a better performance.
(Management Study Guide, 2012)
From the definition above, it is clear that performance appraisals form part of the bigger picture of
the organisation, namely the organisations performance management system.
Performance management can also be defined as the process of creating a work environment or
setting in which people are enabled to perform to the best of their abilities. Performance
management is a whole work system that begins when a job is defined as needed. It ends when
an employee leaves your organisation (CiteHR, 2012).
Performance appraisals are part of the system of performance management that is focused on the
individual. Performance management, considered more broadly, includes managing the
organisation's performance.
Once the performance requirements of each employee have been determined, the manager
should:
Assess continuously to review the job performance of individuals on an informal and formal
basis; and
Provide performance feedback.
In the course of day-to-day management by walking around, informal assessment and review
occurs. When performance is continuously assessed the manager can identify performance
problems immediately, discuss them with the employee, and decide on corrective action. This
continuous assessment ensures that employees:
Are able to achieve their performance requirements;

Contribute towards the organisation in achieving its objectives; and
Fulfil the organisation's purpose.
Performance must be appraised and reviewed more formally and systematically on a regular basis
if it is to be managed effectively. A performance management cycle is usually a 12-month period in
which performance may be appraised at least one or twice.

Amos et al (2012:293) explain that organisations must consider which method of performance
appraisal is most suitable for providing reliable performance information when gathering
performance data. Individual performance can be managed by focusing appraisals on the
employees personal attributes, behaviour, or results.
The importance of performance appraisal
Kirk (2012) justifies the principles in Table 4 as reasons why performance appraisals are important
to organisations.
TABLE 4: THE IMPORTANCE OF PERFORMANCE APPRAISALS
A performance appraisal is used to discuss individual strengths and weaknesses

Personal attention related to employees job descriptions. The employee has the opportunity to discuss
personal concerns with his or her direct manager.
It provides feedback to employees on whether they are fulfilling the requirements of
Feedback
the job they are doing.
Performance appraisals are a tool for career management. Employees skills and
Career path
goals are to be discussed in order to gather information on their retention potential.
Employees will be aware that they will have regular evaluations and will be held
Employee accountability
accountable for their actions.
Communication of company The employee and manager need to discuss whether the employee is still aware of
goals their importance towards the companys goals.
Purpose of performance appraisal
The purpose of the performance appraisal is to determine the extent to which an employee has
performed in relation to the job requirements. The role of appraising employees is not just the
responsibility of the HR department or HR manager. People who are familiar with the performance
of the employee being appraised can also do it. The appraisal process must be as objective as
possible if it is to succeed. Figure 9 illustrates a generic performance appraisal procedure
Performance appraisal procedure
How is a performance appraisal procedure conducted in an organisation? The performance

appraisal procedure consists of four steps, illustrated in Figure 9.

FIGURE 9: PERFORMANCE APPRAISAL PROCEDURE
Step 1: Iden+fy performance criteria
Step 2: Communicate performance criteria
Step 3: Measure performance
Step 4: Compare performance with desired criteria
(Ngo, 2012)
During the first step the performance criteria are identified. In the following step the performance
criteria is communicated with the individual. During step 3 the performance is measured, and
during the last step the performance is compared with the desired criteria.
7.5.5 Key Points
After this section you should be able to understand performance management better and how
performance appraisals are used. The key points on performance management are:
Performance management is an approach to manage people;

Performance management is a set of practices used by managers to plan, direct, and
improve the performance of employees in line with achieving the organisations strategic
objectives;
The performance management process begins with the translation of the overall strategic
objectives of the organisation into clear objectives for each individual employee; and
Performance appraisals are part of the system of performance management as it is
focused on the individual.

7.6 R EWARDS AND R EMUNERATION
Learning outcome Differentiate between reward and remuneration in motivating staff.
Dessler, G. et al, 2011, Human Resource Management: Global and Southern African
Recommended book
Gill, S. 2014, Rewards for failure: an explanation for anomalous executive remuneration,
Recommended Journal of Indian Business Research, 6 (2), 90-127,
articles http://www.emeraldinsight.com/doi/pdfplus/10.1108/JIBR-05-2013-0054 (accessed 15
September 2015).
Recommended
All items in list of recommended multimedia
multimedia
Section overview: This section differentiates between rewards and remuneration when motivating staff.
7.6.1 Introduction
This section investigates the differences between reward and remuneration in the organisation
when motivating staff. Watch the video clips below on rewards and what motivates persons.
ThePeopleDymanic.com. 2011, HR basics: performance and rewards,

https://www.youtube.com/watch?v=ALZVggBDODY (accessed 15 September 2015).
RSA Animate Drive. 2010, The surprising truth about what motivates us,
https://www.youtube.com/watch?v=u6XAPnuFjJc (accessed 15 September 2015).

7.6.2 Rewards
Performance and behaviour should be rewarded by a winning system. Performance is linked to

initial goals and is the easiest to address. Rewarding specific behaviours that made a difference to
your company is more challenging than rewarding performance (Entrepreneur, 2014:1).
Tynan (2014:1) points out some ways to reward employees without spending money:
Instituting flexible working hours;

Communicating via handwritten notes;
Making work more fun;
Giving your employees a free pass to use a number of free days annually;
Applauding your employees' efforts;
Saying thank you with flowers;
Walk it as you talk it; and
Offering your employees both extrinsic and intrinsic rewards.
Extrinsic and Intrinsic Rewards
Differentiate between extrinsic and intrinsic rewards and compare your answer with the definitions below.
Extrinsic reward
An extrinsic reward is an award that is tangible or physically given to you for accomplishing
something. It is a tangible recognition of ones endeavour.
(MikeW, 2014:1)
Examples of extrinsic rewards are:
A certificate of accomplishment;
A trophy or medal for winning a race;
A badge or points for doing something right; or
A monetary reward for doing your job.
Extrinsic rewards are tangible, and are usually given to the person performing the activity. Extrinsic
rewards are not from within the person. The reward is extrinsic to the performer of the activity or
behaviour.

Intrinsic reward
An intrinsic reward is an intangible award of recognition, a sense of achievement, or a conscious

satisfaction.
(MikeW, 2014:1)
Examples of intrinsic rewards are:
The knowledge that you did something right; or

You helped someone and made his or her day better.
Intrinsic rewards are intangible and they arise from within the person who is performing the activity.
The reward is intrinsic to the person doing the activity or behaviour. An important distinction
between intrinsic and extrinsic rewards is that intrinsic rewards are those that originate from within
the person, and extrinsic rewards are those that originate from something beyond the person.
7.6.3 Role of Reward in the Organisation
What is often missing from the growing corpus of theory is the role that rewards, benefits and
incentives play. It is true that employers cannot buy workers loyalty or commitment, and it is also
true that employers must reward, and be seen to reward employees for high performance that
results from engagement (Hrexecutivecircle, nd:3).
Hrexecutivecircle (nd:13) further points out that rewards and benefits can only help build
employee engagement in the context of a broader strategy that takes account of the many other
factors driving the agenda. In a survey, one in four employers rated rewards and benefits as a key
driver in engaging workers in their organisations.
Pay and reward are referred by many commentators as hygiene factors in engagement get it
right and no one notices, get it wrong and the best people pack up and move on. This argument
suggests that reward is fundamental in recruiting people but not much else. It is said that a first-
class reward strategy is about managing high performance and valuing people's extra effort.
A first class reward strategy encompasses far more than base pay, and involves every effort a
business makes to show that it values all staff. The strategy can include things such as bonuses,
pension, health insurance and gym membership. Additional things, such as employee of the month
incentives, suggestion schemes, and even training and development opportunities.

In a survey the following was revealed:
Only 20% reported they fully understood the value of the benefits offered by their
employer and one-third had no understanding of their value. This is a missed opportunity
for many organisations. When this lack of understanding is compared with employees'
satisfaction with benefits, the pivotal role of rewards and benefits in driving employee
engagement becomes clearer;
Only 35% thought their employer was competitive with regard to pay. Thirty-two percent of
employees did not think their pay was competitive when compared to others doing a
similar job in similar organisations;
Only 25% thought their benefits were competitive and 36% thought they were
uncompetitive;
Only 17% thought their company's incentives programme was competitive, compared with
40% who thought it was not;
Fifty-one percent of employers thought their organisation's pay was competitive when
compared with other organisations in their sector;
Only 11% felt their pay offering was uncompetitive;
Forty-four percent of employers thought their organisation's benefits package was
competitive and 20% thought it was uncompetitive; and
Twenty-five percent of employers thought their incentives programme was competitive,
while 33% regarded it as uncompetitive.
Limaye and Sharma (nd:6) say that in recent times human capital has gained prominence over
financial capital. Today, people determine the competitive advantage of a business. Hence the use
of rewards and recognition is becoming critical. Rewarding aims at strategically designing ways to
compensate employees for their efforts and contribution towards the organisation. Rewarding
motivates by fulfilling employees' desire for monetary gain.
The purpose of rewarding is to tell employees that their contributions are valuable to the
organisation. By rewarding employees they feel validated, important and respected. Objectives
that an effective rewards and recognition programme seek to fulfil are:
They positively reinforce and sustain desirable actions and behaviours among employees,
in turn leading to sustained excellence in performance;
They help to retain the best talent that the organisation requires for its growth and
continued success; and
They help the organisation to attract best or suitable talent from the talent market, whether
it is raw talent out of the best educational or professional institutions or talent from the pool
of outstanding experienced professionals.
(Limaye and Sharma, nd:9)

7.6.4 Remuneration
Every organisation should have a remuneration policy. Also called a compensation policy. a
remuneration policy is simply a payment plan that any type of organisation has that outlines how
employees are paid for working (Wisegeek, 2014). This policy may include the base salary for
each role in the organisation, and it may illustrate the conditions under which pay raises will occur,
as well as any additional benefits.
Benefits can include incentives such as annual bonuses, overseas trips that are paid for by the
organisation, dental plans, etc. A remuneration policy is designed to fit a particular organisation
and the goals that it desires to achieve.
In a typical organisation, different roles have different responsibilities, tasks and skills. The
remuneration policy is there to determine the appropriate pay rate for each set of responsibilities
and tasks. The policy controls how pay increases as employees take on more responsibilities and
tasks or move into higher roles.
Read the following article on rewards for failure.
Gill, S. 2014, Rewards for failure: an explanation for anomalous executive remuneration, Journal
of Indian Business Research, 6 (2), 90-127,
http://www.emeraldinsight.com/doi/pdfplus/10.1108/JIBR-05-2013-0054 (accessed 15 September
2015).
7.6.5 Motivation
What is motivation?

Motivation
Discuss in class.
1. What is motivation?
2. Can employees be motivated to better perform through rewards and remuneration?
3. What motivates you? Share your thoughts in class with your fellow students.
Motivation is defined as the process that initiates, guides, and maintains goal-oriented behaviours.
Motivation is what causes us to act, whether it is getting a glass of water to reduce thirst or reading a
book to gain knowledge. It involves the biological, emotional, social, and cognitive forces that activate
behaviour. In everyday usage, the term motivation is frequently used to describe why a person does
something.
(Cherry, 2014:1)
The term motivation refers to factors that activate, direct, and sustain goal-directed behaviour
Motives are the whys of behaviour the needs or wants that drive behaviour and explain what we
do. We don't actually observe a motive; we infer that one exists based on the behaviour we observe.
(Nevid, 2013 in Cherry, 2014:1)
Activation, persistence, and intensity are three major components to motivation. Cherry (2014:1)
explains the components as:
Activation. It involves the decision to initiate a behaviour, such as enrolling in a

psychology class;
Persistence. A continued effort toward a goal even through obstacles may exist, such as
taking more psychology courses in order to earn a degree although it requires a significant
investment of time, energy, and resources; and
Intensity. Intensity is visible in the concentration and vigour that goes into pursuing a
goal. For example, without much effort, one student might coast by without much effort,
while another student will study regularly, participate in discussions and take advantage of
research opportunities outside class.

Theories of motivation
Discuss the following question in class.
Motivation
What are the things that actually motivate us to act?
Several theories to explain motivation have been proposed by psychologists. Some of the best
known are:
Instincts. It is suggested by the instinct theory of motivation that behaviours are motivated by
instincts, which are fixed and inborn patterns of behaviour. Psychologists who have proposed
basic human drives that motivate behaviour are William James, Sigmund Freud and William
McDougal.
Drives and Needs. Biology motivates many of our behaviours such as eating, drinking, and
sleeping. Because we have a biological need for food, water, and sleep, therefore we eat, drink,
and sleep. The drive theory suggests that people have basic biological drives and that our
behaviours are motivated by the need to fulfil these drives.
Arousal levels. This level suggests that people are motivated to engage in behaviours that help
them to maintain their optimal level of arousal. A person who has a low arousal need might pursue
relaxing activities, while those with high arousal needs might be motivated to engage in exciting,
thrill-seeking behaviour, such as bungee jumping.

7.6.6 Motivating Staff
How do you motivate staff? Read the following article and answer the questions that follow.
How to Motivate Staff
Why is motivation important?

Motivation is important because even at the most basic level, it costs more to replace staff than to
keep them. Staff liked to feel needed and respected, and keeping them happy means they'll stay with
you for much longer. Remind yourself that even in tough times; you need to keep motivating your
staff high on your list of priorities.
Make staff feel respected

Check on your staff regularly
Make people feel valued

Hopefully your staff are performing well and helping drive your business forward. In that case, you
should be letting them know how much you value them on a regular basis. Whether you tell them or
buy them a slice of cake both work equally well. It shows you've thought of them and if you can afford
to splash out on weekly drinks - then do so. If you're staff enjoy socialising with you as much as
working with you, then you're doing something right.
Incentivise your staff by with social events

Let your staff know how much you value them
Lead by example
It's important that you lead by example when dealing with staff, if you expect to your team to stay
late, then you should stay late too. Likewise, if you don't want staff rolling in at 11am on a Monday
morning, then make sure you're at your desk bright and early. It's not just about working hours
though. Show you staff respect and you'll (hopefully) get it back. They'll also pick up on the way you
speak to people and act in different circumstances, so make sure you're behaving how you'd like
them to.
Don't expect your staff to do what you won't

Have firm leadership qualities
Training and personal development

Investing in your staff is important, not only will it mean you're getting the best and most up to date in
the business but they'll be grateful for being able to develop under your watchful eye. Make sure you
fully research courses to send your staff on to get the full potential. It's also important to get feedback
from staff on how they feel the courses benefitted them.
Set aside money to spend on training courses

Fully research courses
Get feedback from staff

Communication
Communicating with your staff should be high on your list of priorities. Most staff like a visible boss -
one they know they can go to with problems. It's important that you hold frequent job chats to make
sure they're happy, getting on ok and aren't confused about anything. Aside from this, make sure you
communicate with your staff on a daily basis. Saying good morning and good night are simple
motivational tools but can make a world of difference.
Have regular chats with your staff

Communicate daily however insignificant
Make yourself accessible
(Smarta, 2013:1)
How to Motivate Staff
Discuss in class
1. Do you consider making people feel valued, leading by example, training and personal development and
communication sufficient to motivate staff in an organisation?
2. Can you link the different theories of motivation (instincts, drives and needs, and arousal levels) to training and
personal development? Explain the link.
3. List and explain five other forms of extrinsic motivations to motivate staff in the organisation.

7.6.7 Key Points
This section discussed rewards and remuneration in motivating staff. Key points on rewards and
remuneration:
Performance and behaviour should be rewarded by a winning system;

Performance is linked to initial goals and is the easiest to address;
People can be rewarded in many ways;
An award that is tangible or physically given to you for accomplishing something is known
as an extrinsic reward;
An intangible award of recognition, a sense of achievement, or a conscious satisfaction is
known as a conscious satisfaction;
Rewards play a role in the business;
A compensation policy is simply a payment plan that any type of organisation will have in
place that mainly outlines how employees will get paid for working for the organisation;
Motivation is defined as the process that initiates, guides, and maintains goal-oriented
behaviours;
Activation, persistence, and intensity are three major components to motivation;
Extrinsic motivation has components that arise from outside of the individual and often
involve rewards such as trophies, money, social recognition or praise; and
Intrinsic motivation has components that arise from within the individual, such as doing a
complicated crossword puzzle purely for the personal gratification of solving a problem.
The last section considers leadership and leadership styles.

7.7 L EADERSHIP
Learning outcome Review key leadership styles
Dessler, G. et al, 2011, Human Resource Management: Global and Southern African
Recommended book
Mesu, J., van Riemsdijk, M. and Sanders, K. 2012, Labour flexibility in SMEs: the impact of
Recommended leadership, Employee Relations (35) 2, 120-138,
articles www.emeraldinsight.com/doi/pdfplus/10.1108/01425451311287835 (accessed 15
September 2015).
Recommended
multimedia
Section overview This section reviews leadership styles and differentiates between them.
7.7.1 Introduction
The competitive advantage of an organisation lies in its human resources and no longer in its
products or technology (Amos et al, 2012:195). Organisations need to establish a competitive
advantage by realising intellectual capital from their human resources if they want to be successful.
The success of an organisation and the task of realising intellectual capital is the responsibility of
management. Leadership is an important ingredient for managers in realising intellectual capital.
The competence and leadership abilities of managers determine in large part the returns that
organisations realise from their human capital, or human resources. Top, middle and first-line
managers consequently need human skills, the ability to work with and lead others.
Watch this video clip on leadership:
Zigarelli, M. 2013, Ten leadership theories in five minutes,

https://www.youtube.com/watch?v=XKUPDUDOBVo (accessed 15 September 2015).

7.7.2 Leadership
According to Amos et al, (2012:195), effective leadership can be developed at all levels in the
organisation. The focus in an organisation is often on senior and middle management to develop
their leadership. But line managers and supervisory staff can also be developed into effective
leaders. A key requirement for a line manager to be an effective leader is to be aware of his or her
own thinking, practice, and the effect of his or leadership.
The line manager should scrutinise this against a conceptual understanding (mental model) of
ideal leadership, identify gaps, formulate strategies to close the gaps, and implement the strategies
by experimenting with changes in his or her thinking and practice (Amos et al, 2012:196).
What is leadership?
Leadership is very simply the ability of one person to influence others to not only understand and
accept what needs to be achieved but also to willingly contribute to the efforts required to accomplish
shared objectives.
(Yukl, 2006 in Amos et al, 2012:196)
Leadership is about interpersonal influence. To be a leader is to be able to influence people to

move in a particular direction that is in their genuine long-term interests. Leadership in the context
of organisations is about influencing others in given situations to understand and accept the goals
of the organisation and to contribute willingly to the achievement of these goals (productivity,
quality, satisfaction) in an effective and efficient manner.
Influence is crucial to leadership and involves power, which is the capacity of one person to
influence the attitudes and behaviour of another (Yukl, 2006 in Amos et al, 2012:196). The author
differentiates between three reactions to the exercising of power by leaders, namely:
Commitment. Where others agree with what the leader requests and exert much effort
to act on the request.
Compliance. Where others are willing to do what the leader requests but are apathetic
about it and exert minimal effort.
Resistance. Where the request of the leader is opposed and others actively attempt to
avoid acting on it.

7.7.3 Leadership and Management
Management and leadership are sometimes seen as synonymous and used interchangeably. The
overlap between management and leadership lies in the fact that leadership is an important role of
management (Mintzberg, 1975 in Amos et al, 2012:198). Management and leadership are both
essential for the success of the organisation.
Debate the following question in class.
What Are the Differences Between a Manager and a Leader?
Compare your answer with the explanation following.
Managers are formally appointed into a position of authority within the hierarchical structure of an
organisation to assist the organisation in getting the required work done to achieve its goals in an
efficient and effective manner. Managers plan and budget, organise and staff, and devise systems to
monitor and control. Leadership, on the other hand, is more about interpersonal relationships. It is
about setting direction, aligning people, and motivating and inspiring them.
Unlike management, leadership does not have to occur within the hierarchical structure of the
organisation. Managers therefore are not necessarily leaders and, likewise, leaders are not
necessarily managers. Similarly, a good manager is not necessarily a good leader, and vice versa.
(Amos et al, 2012:198)
Table 5 expands on the differences between leadership and management.

TABLE 5: DIFFERENCES BETWEEN LEADERSHIP AND MANAGEMENT
A Manager A Leader
Exercises the daily functions of planning and budgeting, Motivates people to complete tasks voluntarily. Inspires
organising and staffing, directing and controlling, as a people.
result of formal authority. Directs people on the basis of
his or her authority.
Monitors and controls to implement plans. Motivates and inspires people to implement plans.
Uses vision to determine direction and have strategies to

Plans and budgets.
action the vision.
Achieves compliance from subordinates. Achieves commitment and loyalty from staff.
Does repetitive tasks right. Does the right things.
Is efficient. Is effective.
Administers. Innovates.
Focuses on systems. Focuses on people.
Relies on control. Inspires trust in the organisation.
Accepts the status quo. Challenges the status quo.

Comfortable with routine. Comfortable with change.
Reactive. Maintains to keep the show on the road. Proactive. Initiates change.
Provides structure and consistency. Initiates change.

Has a long-range view. Focuses on the future and crafts
Has a short-range view. Focuses on the present.
visions.
Budgets and allocates resources. Creates capacity for change and something different.
Transactional. Transformational.
Managers focus on the strategy, structure, resources, Leaders focus on the purpose, processes, style, staff, and
and system elements of an organisation. shared values elements of an organisation.
(Amos et al, 2012:199)
Read the following article on the impact of leadership on labour flexibility in small and medium-
sized enterprises.
Mesu, J., van Riemsdijk, M. and Sanders, K. 2012, Labour flexibility in SMEs: the impact of
leadership, Employee Relations (35) 2, 120-138,
www.emeraldinsight.com/doi/pdfplus/10.1108/01425451311287835 (accessed 15 September
2015).

7.7.4 Leadership Styles
The maturity or readiness of followers, defined in terms of their ability and willingness to complete
a task, determines the combination of task and relationship behaviour a leader can adopt as either
telling, selling, supporting, or delegating styles (Hersey and Blanchard, 1982, in Amos et al,
2012:211). These authors note that a leader's style is determined by the level of employee or
subordinate readiness. Subordinate readiness is defined in terms of the person's ability and
willingness to complete a task. The different leadership styles are described below:
Telling style
Subordinate readiness is described as low. The subordinate is seen to be unable but willing. The
leader as a result of this low level of subordinate readiness adopts a telling style, where directive
behaviour is high and supportive behaviour is low. Specific instructions are provided by the leader
to the subordinate and are also closely supervised.
Selling style
The subordinate is unable and unwilling. The leader adapts a leadership style whereby he or she
explains the decisions to the subordinate. Opportunity is provided for the subordinate to ask
questions and clarify any uncertainty. The leader engages in high supportive behaviour since the
subordinate is unwilling. Responding to the subordinate's inability, the leader engages in high task
behaviour in order to develop the subordinate's ability.
Participating style
A participating style is appropriate where the subordinate is able but unwilling. Because the
subordinate is able but high supportive behaviour is necessary to develop a sense of willingness, a
low task behaviour is required. In this style, the leader shares ideas with the subordinate and
involves the subordinate in making decisions.
Delegating style
This style is used where the subordinate is able and willing, requiring low task behaviour and low
relationship behaviour from the leader. In this case the subordinate becomes responsible for
decision-making and the execution of his or her decisions.

7.7.5 Other Leadership Styles
Managers in organisations should employ leadership styles that enable them to survive in an
increasingly turbulent and competitive business environment (Amos et al, 2012:214). This
leadership style is branded transformational leadership.
Transformational leadership
What is transformational leadership?
[A] leader will have to be more than merely a manager; a leader will need to develop followers, raise
their need levels and energise them, and promote quantum positive changes in individuals, groups,
teams and even entire organisations (Avolio, Waldman and Yammarino, 1991 in Amos et al,
(2012:214).
Transformational leadership is seen by Bass and Avolio (1994) in Amos et al (2012:215), when
leaders:
Stimulate interest among colleagues and followers to view their work from new
perspectives;
Generate awareness of the mission or vision of the team and organisation;
Develop colleagues and followers to higher levels of ability and potential; and
Motivate colleagues and followers to look beyond their own interests towards those that
will benefit the group.
Individuals are motivated by transformational leadership to perform beyond normal expectations by

employing one or more of the four Is of transformational leadership (Bass, 1985, Avolio,
Waldman, and Yammarino, 1991, Avolio and Bass, 1997 in Amos et al, 2012:215-217). The four
Is are:
Idealised influence. Referent power and influence over others are developed by
transformational leaders who become role models as a result of who they are and what
they do;
Inspiration. Transformational leaders motivate and inspire others. They provide meaning
and challenge to the work of others, create team spirit and a challenging and exciting
environment to work in;
Intellectual stimulation. Followers of transformational leaders are stimulated to think
differently about situations and problems and to be innovative and creative. Each
follower's intellectual value and contribution is recognised by the leader; and
Individualised consideration. Transformational leaders pay attention to the needs of
each individual, and take an interest in the follower beyond just what the organisation can
get from the follower. The transformational leader demonstrates a genuine concern for the
whole person, and acts as a mentor or coach to individuals.
There are many other types of leadership. Each is discussed briefly below.

Transactional leadership
Functions in general are centralised to provide specialised support in day-to-day transactional

activities. The leaders focus is on the performance of the group, the role of supervision, and the
organisation. The leader promotes compliance of his or her followers through both rewards and
punishments. Transactional leaders:
Achieve expected levels of performance from subordinates

Leaders define and communicate the work that:
o Must be done by followers
o How it will be done
o The rewards followers will receive for successfully completing the stated objectives.
Contingent reward and management by exception (MBE) are components of transactional

leadership.
Contingent reward
The leader gives compensation to employees when they perform according to contract or
expectation. The leader assigns a task, or an agreement is obtained. The leader rewards
employees. A leader who follows the contingent reward approach:
Provides resources and support in exchange for effort from followers;

Provides clear communication of work instructions and responsibility for carrying out work
tasks;
Gives recognition when tasks are performed as agreed; and
Puts emphasis on ensuring that standardised working procedures are followed.
Management by exception (MBE)
A negative form of contingent reinforcement is passive MBE. Leaders use MBE only when
employees do not meet the desired goals. Corrective action is only taken when employees deviate
from standards, or when mistakes and errors occur, and only then takes corrective action.
According to Amos et al, (2012:214) a predominantly active management-by-exception mind-set
leader will:
Spend most of his or her time attending to mistakes;

Constantly monitor followers, waiting for errors to occur;
Correct errors when they occur and punish or discipline the follower accordingly;
Enforce rules strictly and rigidly;
Tend to avoid conflict as much as possible (does not like intervening);
Take no action unless a problem becomes chronic;
Tend to resist change as it may cause problems;
Spend much energy and time on maintaining the status quo; and
Operate predominantly in a reactive rather than a proactive manner.

African leadership
Though the Western style of leadership tends to favour the powerful and sometimes arrogant, who
assert their individuality and thrive in a hierarchical environment, the African leader is completely
different. Such leaders have a different agenda from their Western counterparts, favouring communal
solutions, where trust and consultation form the basis for negotiations and the interests of the whole
community far transcend individual interests. It takes a remarkable leader to put aside the desire for
personal power and glory and instead, in the style of a true African leader, focus on the needs of all
people. Such a leader can inspire unimaginable feats of reconciliation through humility, a willingness
to serve others, and a true love and concern for the people. (Amos et al, 2012:220)
Leaders cannot choose their style at will; what is feasible depends to a large extent on the cultural
conditioning of a leader's subordinates (Hofstede, 1980 in Amos et al 2012:220). One of the most
important tasks of leadership in business involves connecting the internal culture of the enterprise
to the social and cultural values of the people who work there, particularly in highly diverse
societies like South Africa and many other African countries, with their mix of Africans, Asians,
Europeans and others (Khoza, 2005 in Amos et al, 2012:220).
The value system in South Africa is best described by the term ubuntu, meaning Umuntu
ngumuntu ngabantu, or "A person is a person because of other people" (Boon, 1996 in Amos et
al, 2012:220). The term means humanness or being human and is characterised by values such
as caring, sharing, compassion, communalism, communocracy and related predispositions
(Khoza, 2005 in Amos et al, 2012:220).
African Leadership
Discuss in class: What meaning does the term ubuntu have for a diverse workforce in a South Africa business?
Autocratic leadership
An autocratic leader makes decisions without consulting their team members, even if their input
would be useful. This style can be appropriate when you need to make decisions quickly, when
there is no need for team input, or when team agreement is not necessary for a successful
outcome. An autocratic leadership style can be demoralising, and can lead to high levels of
absenteeism and staff turnover (MindTools, 2014:1).

Democratic leadership
Democratic leaders make the final decisions, but they include team members In the decision-
making process. Democratic leaders encourage creativity, and often people are highly engaged in
projects and decisions. Because of this, this team members tend to have higher job satisfaction
and high productivity. When a leader has to make a quick decision this is not always an effective
style to use.
Laissez-faire
In this leadership style leaders give their team members a lot of freedom in how they do their work,
and how they set their deadlines. Leaders provide support with resources and advice if needed.
Otherwise, they do not get involved. This autonomy can lead to high job satisfaction, but it can be
damaging if team members don't manage their time well, or if they don't have the knowledge,
skills, or self motivation to do their work effectively (MindTools, 2014:1). When managers do not
have control over their work and their people, laissez-faire leadership can also occur.
Bureaucratic leadership
Leaders who are bureaucratic follow rules rigorously, and they ensure that their people follow
procedures precisely. This leadership style is appropriate for work that involves safety risks (such
as working with machinery, with toxic substances, or at dangerous heights), or with large sums of
money. For managing employees who perform routine tasks the bureaucratic leadership style is
also useful. The bureaucratic leadership style is much less effective in teams and organisations
that rely on flexibility, creativity, or innovation.
Charismatic leadership
This leadership style resembles transformational leadership. Team members are inspired and
motivated by both charismatic and transformational leaders. The difference lies in their intent.
According to MindTools (2014:1) Transformational leaders want to transform their teams and
organisations, while leaders who rely on charisma often focus on themselves and their own
ambitions, and they may not want to change anything.
Even when others warn charismatic leaders about the path that they are on, they might believe
that they can do no wrong. A team or an organisation can be severely damaged by this feeling of
invincibility.

Servant leadership
A person, regardless of level, who leads simply by meeting the needs of the team, is a servant
leader. A person is sometimes described as a servant leader without formal recognition as a
leader. Servant leaders often lead by example, and have high integrity and lead with generosity.
A positive corporate culture can be created by their approach, and it can lead to high morale
among team members. It is suggested by supporters of the servant leadership model that it is a
good way to move ahead in a world where values are increasingly important, and where servant
leaders can achieve power because of their values, ideals, and ethics. Another school of thought
believe that people who practise servant leadership can find themselves "left behind" by other
leaders, particularly in competitive situations.
The servant leadership style takes time to apply correctly, and it is ill-suited to situations where you
have to make quick decisions or meet tight deadlines (MindTools, 2014:1).
Identify Your Leadership Style
Complete the questionnaire on www.sagepub.com/northouseintro2e/study/resources/questionnaires/89527_03q.pdf to

identify your style of leadership.
7.7.6 Ethics and Sustainability
A leader should show leadership in ethics and maintain a high standard of ethical behaviour.
Business ethics (or management ethics) focuses on moral standards as they apply to
organisations and the behaviour of organisational members. (Grobler et al, 2011:200). In
business, most decisions have an ethical component. An integrated approach to decision-making
is required in business ethics. This integrated approach recognises that managers must take the
moral point of view as well as make economically sound decisions and act within the law.
Ethics deals with values, with god and bad, with right and wrong. We cannot avoid involvement in
ethics for what we do and we don't do is always a possible subject of ethical evaluation. Anyone who
thinks about what he or she ought to do is, consciously or unconsciously, involved in ethics. (Singer,
1993 in Grobler et al, 2012:339)
Before you complete the next task, ensure that you have answered the questions on page 3 of this
study guide. If not, familiarise yourself with the ethical considerations and how will your actions
affect you, your colleagues and the public at large?

Discuss the following questions related to ethics and sustainability in class.
Ethics and Sustainability
1. What impact does individual, group and organisational values, norms, and standards have on the ethical culture in
an organisation?
2. Organisations face high levels of ethics risk. What will you do to ensure that ethics in the organisation is managed
and sustained?
3. Ethics should be managed as a generic key performance area of managers. How will you managed ethics in the
organisation?
4. HRM activities such as performance management, labour relations, rewards and remuneration are topics discussed
in this module. These activities are important vehicles for promulgating an ethical culture in the organisation. How
would you sustain an ethical culture through these HRM activities? Discuss each activity separately.

7.7.7 Key Points
There are differences between management and leadership. This section focused on leadership
and the various types of leadership. The key points in this section are:
Leadership is very simply the ability of one person to influence others to not only
understand and accept what needs to be achieved but also to willingly contribute to the
efforts required to accomplish shared objectives.
Commitment, compliance and resistance are three reactions by people to the exercising of
power by leaders.
There are differences between leadership and managers.
There are different leadership styles namely telling, selling, participating and delegating.
Other leadership styles are transformation, transactional, African, autocratic, democratic,
laissez-faire, bureaucratic, charismatic and servant leadership style.

8. REFERENCES
Accountlearning, 2013, Human Resource Planning Process or Steps of HR Planning

accountlearning.blogspot.com/2013/01/human-resource-planning-process-or.html (accessed 11
December 2014).
Amos, T.L., Ristow, A., Ristow, L., and Pearse, N.J., 2012, Human Resource Management, 3rd
edition, Cape Town: Juta.
Basic Conditions of Employment Act No. 75, of 1997,

http://www.plato.org.za/pdf/legislation/Basic%20Conditions%20of%20Employment%20Act%2075
%20of%201997.pdf, (accessed 13 November 2014).
Bendix, S. 2010, Industrial Relations in South Africa, 5th ed, Cape Town: Juta.
Boundless, 2014, Human Resource Planning. Boundless Management

www.boundless.com/management/textbooks/boundless-management-textbook/human-resource-
management-7/purpose-of-human-resource-management-56/human-resource-planning-281-8373/
(accessed 11 December 2014).
Brooks, S., 2014, Strategic, future-proof succession planning connects Telefnica with success,
Human Resource Management International Digest, (22) 2, 28-30,
www.emeraldinsight.com/doi/pdfplus/10.1108/HRMID-04-2014-0040 (accessed 08 January 2015).
Businessdictionary, 2014, Human resources planning

www.businessdictionary.com/definition/human-resources-planning.html (accessed 10 December
2014).
Careercentre, 2011, Career planning 4 step planning process www.careercentre.dtwd.wa.gov.au

Cherry, K. 2014, What is Motivation, psychology.about.com/od/mindex/g/motivation-definition.htm


CiteHR.com. 2012, Definition: Performance management, http://www.citehr.com/263-definition-
performance-management.html (accessed 22 December 2014).
Cornell University, 2009, Performance Management Process,

http://www.hr.cornell.edu/life/career/performance_management.html, (accessed 29 December
2014).
Department of Public Service and Administration, nd, Public Service Act, 1994,
http://www.dpsa.gov.za/dpsa2g/documents/acts&regulations/psact1994/PublicServiceAct.pdf,
(accessed 13 November 2014).
Department of Public Service and Administration, nd, Public Service Amendment Act. 30 of 2007,
Section-By-Section Explanation,
http://www.dpsa.gov.za/dpsa2g/documents/acts&regulations/PS_Amend_Act_of_2007.pdf,
(accessed 13 November 2014).
Dessler, G., Barkhuizen, N., Bezuidenhout, A., De Braine, R., Du Plessis, Y., Nel, P., Stanz, K.,
Schultz, C. and Van der Walt, H. 2011, Global and Southern African Perspectives, Cape Town:
Pearson.
Eales-White, R., 2012, Building high-performing teams rapidly, Industrial and Commercial
Training, 44 (7), 424-428, www.emeraldinsight.com/doi/pdfplus/10.1108/00197851211268018
(accessed 08 January 2015).
Entrepreneur, 2014, The Best Ways to Reward Employees, www.entrepreneur.com/article/75340

Gill, S., 2014, Rewards for failure: an explanation for anomalous executive remuneration, Journal
of Indian Business Research, 6 (2), 90-127, www.emeraldinsight.com/doi/pdflus/10.1108/JIBR-05-
2013-0054 (accessed 08 January 2015).
Government of New Brunswick, nd, Succession planning a 5 step process,

http://www2.gnb.ca/content/gnb/en/departments/human_resources/career_development/content/s
uccession_planning/five_step_process.html (accessed 15 September 2015).
Grobler, P., Bothma, R., Brewster, C., Carey, L., Holland, P. and Wrnich S. 2011, Contemporary
Issues in Human Resource Management, 4th ed., Cape Town: Oxford University Press.

Haines, S., Hamouch, S. and Saba, T., 2014, Career success: fit or marketability?, Career
Development International, (19) 7, 779-793, www.emeraldinsight.com/doi/pdfplus/10.1108/CDI-02-
2014-0023 (accessed 8 January 2015).
Heathfield, S.M. 2014, How to Develop a Job Description,

humanresources.about.com/od/jobdescriptions/a/develop_job_des.htm (accessed 27 November
2014).
Heydenrych, A, nd, New Labour Law the bottom-line impact for your business, and our
economy,www.adcorp.co.za/News/Pages/NewLabourLaw-thebottom-
lineimpactforyourbusiness,andoureconomy.aspx (accessed 17 December 2014).
Hrcouncil, 2014a, Keeping the right people: performance management, www.hrcouncil.ca/hr-

toolkit/keeping-people-performance-management.cfm (accessed 16 September 2015).
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succession.cfm (accessed 15 December 2014).
Hrexecutivecircle. nd, Reward to engage rewards, benefits and employee engagement in

today's organisations, www.hrexecutivecircle.com/pdf/Employee-Engagement-White-Paper.pdf
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resource-planning.asp (accessed 10 December 2014).
Kirk, A. 2012, Importance of Performance Appraisals,

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December 2014).
Khurana, A., Khurana, P., and Sharma, H.L., 2009, Human Resource Management,
https://books.google.co.za/books?isbn=8187139382 (accessed 15 June 2015).
Limaye, A., and Sharma, R. nd, Rewards and recognition: make a difference to the talent in your
organisation,
www.greatplacetowork.in/storage/documents/2012_white_paper_on_rewards_and_recognition.pdf

Management Study Guide. 2012, Performance appraisal,
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2014).
Mattoon, L. nd. What is career planning and development?, www.job-interview-site.com/what -is-

career-planning-and development.html (accessed 2 December 2014).
Mesu, J., van Riemsdijk, M., and Sanders, K., 2012, Labour flexibility in SMEs: the impact of
leadership, Employee Relations (35) 2, 120-138,
www.emeraldinsight.com/doi/pdfplus/10.1108/01425451311287835 (accessed 8 January 2015).
MikeW, 2014, Intrinsic vs Extrinsic Rewards (and Their Differences from Motivations),
community.lithium.com/t5/Science-of-Social-blog/Intrinsic-vs-Extrinsic-Rewards-and-Their-
Differences-from/ba-p/128969 (accessed 22 December 2014).
MindTools, 2014, Leadership Styles, www.mindtools.com (accessed 23 December 2014).
Ngo, D. 2012, Performance appraisal procedure,

http://www.humanresources.hrvinet.com/performance-appraisal-procedure/ (accessed 3
November 2014).
Patel, A. 2014, The Labour Relations Amendment Act will take effect on 1 January 2015,
https://www.linkedin.com/groups/Labour-Relations-Amendment-Act-will-
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December 2014).
Saravanja, M. 2011, Secrets of Success, 3rd ed., Johannesburg: Regenesys Management.
Smallbusiness, 2014, Human Resource Planning Process smallbusiness-chron.com/human-

resource-planning-process-4932.html (accessed 11 December 2014).
Smarta, 2013, How to motivate your staff, www.smarta.com/advice/employees/management-

skills/how-to-motivate-your-staff, (accessed 22 December 2014).

Today Cut. nd, Difference between job description, job specification and job analysis,
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15 June 2015).
Tynan, D., 2014, '25 Ways to Reward Employees (Without Spending a Dime),
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Wisegeek.com, 2014, What is a remuneration policy?, http://www.wisegeek.com/what-is-a-

remuneration-policy.htm (accessed 22 September 2015).

9. GLOSSARY OF TERMS
Term Explanation
BCEA Basic Conditions of Employment Act
CCMA Commission for Conciliation, Mediation and Arbitration

COIDA Compensation for Occupational Injuries and Diseases Act
EDP Employee development plan
EEA Employment Equity Act

HR Human resource(s)
IDP Individual development plan
ILO International Labour Organisation
LRA Labour Relations Act

LRAA Labour Relations Amendment Act
MBE Management by exception

NEDLAC National Economic Development and Labour Council
OHSA Occupational Health and Safety Act
PAYE Pay as you earn
PESTIE Political, economic, social, technological, international and ecological
SARS South African Revenue Service
SDL Skills development levy

SME Small and medium-sized enterprises
SWOT Strengths, weaknesses, opportunities and threats
TES Temporary employment services

UICA Unemployment Insurance Contributions Act
UIF Unemployment Insurance Fund

10. VERSION CONTROL
Version number 4.2_e_f

Date of publication: March, 2016
Publisher: Regenesys Management
Place of publication: Sandton
Document Change History
Date Version Initials Description of Change

31 December 2014 1 PDW Rewrite study guide
08 April 2015 1.1 PDW Update study guide with self assessments
26 May 2015 2 AG, TS Reviewed
22 June 2015 3 PDW Updated study guide with feedback from SME and HOD Materials
10 September 2015 3_e RT Edited
28 September 2015 4_e_f SK Formatted
27 November 2015 4.1_e_f SK Finalised SG for 2016 intake
09 March 2016 4.2_e_f SK Updated SG template

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BACHELOR OF

Copyright Regenesys, 2016

We encourage holistic leadership development by fostering multiple intelligences at an intellectual,

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2.1 L EARNING O UTCOMES

On completing this course, you should be able to:

Explore the elements of the HR planning cycle;

Regenesys Business School 2

Regenesys Business School 3

Purpose: We will develop the capabilities of students to be future generators of sustainable

Method: We will create educational frameworks, materials, processes and environments

Partnership: We will interact with managers of business corporations to extend our

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ETHICAL CONSIDERATIONS HOW WILL YOUR ACTIONS AFFECT:

The Ten Principles

The UN Global Compact, in its 10 principles, asks organisations to:

Support and respect the protection of internationally proclaimed human rights;

(United Nations, nd)

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Regenesys Integrated Leadership and Management Model

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Video clip Example

Presentation In a nutshell important summary

Audio Definitions and glossary

Self-reflection activity to complete Calculations

Quote Digital assessment

Note important information Workbook

Interesting source to read Discussion forum

References Recommended resources

Task to complete Web link

Rate your skills Downloadable item

Appendix Version control

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Your material includes:

This study guide

6. PRESCRIBED AND RECOMMENDED RESOURCES

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The following articles are highly recommended for this course:

6.3 P RESCRIBED L EGISLATION

The following legislations is highly recommended for this course:

Basic Conditions of Employment Act, No. 75, of 1997,

Basic Conditions of Employment Amendment Act 2013,

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Constitution of the Republic of South Africa, 1996,

Labour Relations Act and Amendments, www1.chr.up.ac.za/undp/domestic/docs/legislation_30.pdf (accessed

Occupational Health and Safety Amendment Act, No. 181, of 1993,

Public Holiday Act, No. 36 of 1994, http://www.gov.za/sites/www.gov.za/files/Act36of1994.pdf (accessed 15

Public Holidays Amendment Act, No. 48 of 1995, http://www.gov.za/sites/www.gov.za/files/a48-95.pdf

Skills Development Amendment Act, No. 26 of 2011, http://www.polity.org.za/article/skills-development-

Regenesys Business School 10

Career plan examples: career development plan explained, nd,

CNBCAfrica. 2013, South Africas labour laws, https://www.youtube.com/watch?v=QhUb3I3nbww, (accessed

Mennens, J. 2014, How to create a performance management system,

Goldberg, S. 2012, How to write a job description template sample,

ThePeopleDymanic.com. 2011, HR basics: performance and rewards,

Mindset Learn. 2013, Revision: industrial relations, https://www.youtube.com/watch?v=78SR_nKwGC8,

Zigarelli, M. 2013, Ten leadership theories in five minutes,

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NetMBA MBA constructs and discussion. http://www.netmba.com/

Web resources covering capacity building, management, leadership, organisational culture

The Free Comprehensive overviews of strategic planning.

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Section 1 Human Resource Planning and Succession Planning