Leadership and Human Capital Development - Module Guide Notes

INTRODUCTION TO LEADERSHIP AND HUMAN CAPITAL DEVELOPMENT

  • Welcome to the Master of Business Administration program.

  • Required to study and successfully complete a course on Leadership and Human Capital Development.

Module Overview

  • Aims to provide an understanding of the evolution of Human Resources over the last decade.

  • Explores the role of strategic human resource management in adding value to the bottom line of organizations.

  • Discusses the role of line manager in people management to adopt systematic practice and engagement to drive organizational performance.

  • Uses a combination of learning tools, such as case studies and examples of HR practices, to help students understand theory and application.

  • Human resource management (also known as human capital development) replaces the old discipline of personnel management.

  • Personnel management was associated with more transactional aspects of managing people, such as leave, payroll, and benefits administration.

  • The current context requires organizations to recognize the importance of people and leverage their capabilities as a competitive advantage.

Aim of the Module

  • Provide an understanding of strategic human resource management and leadership to effectively manage people to achieve increased market share, improved performance results, and competitive advantage.

CHAPTER 1: INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

  • Outlines the role of Human Capital Management in fulfilling the organization’s overall strategy.

  • Discusses national and international HR frameworks.

  • Explores how HR strategy guides and facilitates talent attraction, recruitment, onboarding, employee training and development, performance appraisal and feedback.

1.1 Introduction

  • The role of HR has evolved over the years into strategic partners.

  • The 21st century approach of HRM ensures the knowledge, expertise, and competencies of people are utilized efficiently and effectively to meet the organization’s strategic objectives (Nasir, 2020).

  • The COVID-19 pandemic requires organizations to be agile, responsive, and adaptive to dynamic contexts.

  • HR is at the center of advising how best to reconfigure workflows, manage performance, and engage employees to perform optimally.

  • HRM plays a critical role in facilitating this complex, dynamic process to ensure an organization’s end-goals are achieved, including adapting to new business models, updated technology, political factors, economic instability, and ethical and environmental concerns.

1.2 Framework for Human Resource Management

1.2.1 International Framework for Human Resource Management
  • Geller & Mazor (2021) propose the previous focus of HR was to make HR services more efficient, effective, and compliant.

  • The current expectation of HR is to have HR capabilities that enable and support global businesses to enter new geographic areas.

  • HR can enable business growth by developing new workforce models that enable offshore talent, global mobility, and contingent workers.

  • HR needs to design and develop standard, repeatable systems, processes, and capabilities that are accessible, fast, and easy for the company to enter new geographic markets and integrate new acquisitions.

  • HR needs to be transformed to deliver forward-thinking capabilities to enable organizations to respond to changes in the business environment, expand their global footprint, and increase revenue and margins.

1.2.2 National Framework for Human Resource Management
  • The current business context is associated with volatility, competitiveness, and technological revolution.

  • HR strategies must be designed purposefully and aimed at achieving the organization’s goals (Werner et al., 2017).

  • The implication is that only the right people must be employed, namely, people who fit the strategic direction and the values of the organization.

  • HR must create an enabling high-performance culture, positive employment experiences, and good HR governance to achieve excellence.

  • HR must design and implement HR systems, processes, and services that are effective and efficient.

Ethics
  • Impacts every aspect of an organization, including its reputation and competitiveness.

  • HR has an important role to play in creating an ethical organizational culture.

  • Talented people want to work for organizations that have a solid corporate citizen footprint, good reputations, and are ethical.

  • Customers are also attracted to ethical organizations that are compliant and committed to sustainability.

  • An organization’s HR department is considered the custodian of its ethics.

  • HR practitioners must adhere to the highest professional standards.

  • The South African Board for People Practices (SABPP) plays a regulatory role by setting standards for the HR profession.

HR Value Chain
  • All HR strategies, systems, processes, policies, programs, plans, and activities are designed to attract, deploy, manage, optimize, and retain talent so that organizational objectives are achieved and strategically positioned for renewal and sustainability.

  • HRM comprises many focus areas that interdependently and holistically enable individuals, groups (teams), and the organization to perform and excel.

  • Organizations and HRM are required to create a sustained competitive advantage and add measurable value to bottom-line results for customers, shareholders, and employees.

1.3 Strategic Human Resource Management

  • Strategic human resource management (SHRM) involves developing a consistent, aligned collection of practices to facilitate the achievement of the organization’s strategic objectives (Werner, et al. (2017).

  • SHRM includes all people management activities.

  • SHRM must be aligned to and supportive of the overall organizational strategy.

  • Ensures that the function of managing people is a priority and that all HR policies, activities, and programs are aligned with the organizational strategy.

Alignment
  • The process of ensuring alignment between the organization’s strategy and HR strategy is referred to as ‘fit’ or alignment.

There are two types of alignment:

  • Vertical alignment – where all HR strategies, resources, and functions are in line with that of the organization

  • Horizontal alignment – where all functions and activities within HR are aligned with one another.

Characteristics of a strategic approach to HRM include:

  • Consideration of the external environment including legislation, technology, social and demographic issues, political forces

  • Alignment with organizational strategy

  • Consideration of all stakeholders, internal and external, to the organization

1.3.1. Strategic Management
  • Organizational success depends on having the right people in the right jobs at the right time with the right skills, knowledge and attributes.

  • There are three phases of the strategic management process:

    • Strategic formulation

    • Strategic implementation

    • Strategic evaluation and control

1.3.2 Strategic Formulation
  • Strategy is usually based on information derived from an environmental scan which typically takes the form of a SWOT analysis (strengths, weaknesses, opportunities and threats).

  • The environmental analysis should include competitive analysis, industry analysis and macro-environmental analysis.

1.3.3 Strategic Implementation
  • An organization must ensure that it has the right structure, systems, processes, policies, culture, leadership, technology and information systems in place.

  • HR function must ensure the organization has the appropriate employees with the right competencies to achieve strategic objectives.

  • HR must develop control systems to manage the performance and behavior of employees in accordance with the strategic objectives (Nel and Werner, 2015).

1.3.4 Strategic evaluation and control
  • An effective and successful organization will constantly monitor the effectiveness of both the strategy and the implementation processes.

1.3.5 The four steps in the strategic planning process

Step 1: Determining the organization’s mission

  • An organization’s mission delineates the focus for the next 3 – 5 years.

  • Based on the environmental analysis, the organization may want to pursue being a market leader, maximize profits, innovate, or just maintain stability of earnings.

  • The organization’s mission determines the strategies and focus areas of the human resource department.

  • Critical questions include business activity areas, growth opportunity, needed capabilities, and success likelihood.

Step 2: Assessment of the organization and its environment

  • The organization must assess its position relative to the external operating environment to identify strategic opportunities and threats (SWOT analysis).

  • This assessment includes identifying what the organization must do to retain or improve its competitive position regarding its products or services.

  • The internal environment that must be assessed to determine the strengths and weaknesses of the organization:

    • People, Capital, Systems, Product, Plant or equipment, Spread of infrastructure, Physical resources, Financial resources. Market segments , Customers, Intangible assets, and Suppliers

  • Client needs or wants are:

    • Range, quality, quantity, durability of products, backup, distribution, after sales service responsiveness, time it takes for a service to be performed

  • Analyze the Competition via:

    • Market share, Growth rate, Profitability , Flexibility, Customers, Suppliers, and Infrastructure.

  • The external environment is analyzed to determine the opportunities and threats that are driving forces that will affect the organization:

    • Social Socio-cultural issues, Economic , Technological , Political or legislative

  • Stakeholders (shareholders, unions, suppliers, investors), Globalisation and global trends , Substitute products and Bargaining power (suppliers, buyers)

Step 3: Setting of specific objectives or direction

  • The analysis is aimed at attaining a common approach regarding what the organization aims to achieve, so it can focus on what it must do to reach these objectives.

  • To determine its position, a gap analysis should be undertaken to determine what must take place to move from the current to the desired situation. This includes compiling various scenarios such as worst, best, and most-likely scenarios.

Step 4: Determination of strategies to accomplish those objectives

  • Strategies that would need to be drawn up include financial budgets, and communication of these to the relevant parties as to how they are to be accomplished.

1.3.6 HR Roles
  • Ulrich’s model highlights six critical roles for the HR practitioner:

    • Credible activist

    • Capacity builder

    • Change champion

    • HR innovator and integrator

    • Technology proponent

    • Strategic positioner

1.4 Contemporary HR Practices

1.4.1 HRM Challenges
  • COVID-19 pandemic poses many HRM challenges where all functions, systems, and processes had to be adjusted to facilitate remote working or to allow for social distancing.

  • The economic impact of COVID-19 has resulted in organizational restructuring, downsizing, and re-engineering.

  • Mass layoffs create fear and insecurity that negatively impact on employee wellness, including salary reduction creating financial distress and the need to realign leadership styles and communication approaches to remote working [Kalogiannidis, 2021]

1.4.2 HR Standards Systems Model
  • The HR Standards Systems Model was developed in 2013 by SABPP to ensure HR strategy is aligned to organizational objectives and to attain a competitive advantage

  • The model has 13 elements that organizes a framework of standards to effectively manage the HR function.

1.5 The Changing Role and HR and its Working Implications

Forbes (2021) provides the top 10 trends that will affect the HR Agenda going forward:

1.5.1 The importance of Employee Wellbeing
  • Workers are feeling burned out, a lack of separation between home and work, financial stress, job loss, unmanageable workloads, concern over job security, trauma, increased domestic responsibilities for women to name a few.

1.5.2 Use the Coronavirus Pandemic to Accelerate Workplace Transformation
  • Three key findings emerged in how HR leaders were developing strategies for returning to the office, responding to employee needs and using the pandemic to accelerate workplace transformation.

1.5.3 The necessity of investing in employee wellness
  • Research indicates that more mental health challenges have emerged in organizations since the Coronavirus outbreak.

  • Analysts believe that more companies will make a public commitment to invest in employee wellbeing and mental health and use this as an advantage in recruiting and retaining talent.

1.5.4 Re-engineering and Transformation of Corporate Learning and development
  • The “next normal” of work should accelerate new ways to learn online.

  • MOOCs (Massive Open Online Courses) will be integrated into learning curriculum courses.

1.5.5 Internal talent mobility to attract, engage, and retain employees

AI is not only being used to source new hires, but to match supply and demand of talent internally.

  • Open Talent Market (OTM) - an internal talent mobility platform powered by Gloat, matching employees to new part time and full-time roles as well as stretch assignments and mentoring engagements

1.5.6 Solving Business Problems Using People Analytics

Data analytics helps decision-makers ask the right questions, such as:

  • Who owns the high potential and promotion process?

  • What are the criteria for qualifying for these programs?

  • Is unconscious bias evident in the process?

1.5.7 Prepare for the Hybrid Office of the Future
  • The future will be defined as a hybrid office, one that combines offices with home and satellite offices, and employees can decide where to work based on the activity they are doing, focused work, online collaboration, team brainstorming, or in-person employee briefings.

1.5.8 Expand Employee Experience and Wellbeing Resources to the Entire Family Unit
  • Companies are re-thinking employee experience to include the employee and the entire family unit.

  • Wellbeing benefits in 2020 were made available to the family unit including back-up childcare, on-demand assistance with home schooling, resources for aging parents, and access to mental health benefits.

  • Globally, organizations are providing holistic well-being for the entire family and this is used to attract and retain talent

1.5.9 Be Holistic in Creating A Diverse, Equitable, and Inclusive Workforce
  • Society expects employers to contribute to corporate social responsibility and sustainability.

  • Organizations have become more invested and committed to addressing racism, inequality and discrimination.

  • organizations that have embraced diversity and inclusion have outperformed their peers on profitability (McKinsey, 2020).

1.5.10 Anticipate New HR Jobs of the Future
  • The Coronavirus pandemic has drastically reshaped the global economy and the labor force, creating massive changes in how we work and where we work.

  • 73% of workers depend on their employer for support in preparing for the future of work.

  • Two new HR Jobs that have emerged:

    • The Future of Work Leader: responsible for analyzing what skills will be most essential as the workforce continues to evolve.

    • (WFH) Work from Home Facilitator: ensures the organization’s processes, policies, technologies, and training are optimal for remote workers. A key metric of success for this role is to focus on nurturing the company culture and building remote workers’ sense of belonging within the organization, ensuring that they know their purpose and feel deeply cared for.

1.6 HR Competency Model

  • The most suitable HR organization structure can be designed by HR heads to re-build an HR team to suit a changing organization by competency models setting out the requirements for each HR position in terms of outputs, knowledge, skills and behaviors.

  • Competency models provide the foundation for a pro-active approach to analyzing training needs. If no competence standards have been set, then any attempt to assess the competence levels of staff can only be subjective and therefore possibly inconsistent and unfair.

  • The SABPP’s National HR Competency Model provides a standard and template within which the HR job roles can be described and profiled.

  • The HR Competency Model outlines the key competencies needed to implement the first national HR standards framework.

1.7 HR Profession

  • The South African Qualifications Authority (SAQA) recognized the SABPP as a professional body and set in motion the process to register SABPP’s HR professionals’ qualifications on the National Learner’s Record Database.

1.7.2 Institute for Personnel Management (IPM)
  • IPM was founded in 1945 and considers itself the mother body of human resource management in South Africa, having established training, development, operational tools, qualifications and quality assurance for the people management and HR fraternity.

1.7.3 Other Association in Human Resource Management
  • SA OD Network (SAODN), Industrial Relations Association (IRASA), South African Rewards Association (SARA), SA Payroll Association (SAPA), Association of Change Management Professionals (ACMP), Association of Skills Development (ASDSA), and much more.

Conclusion

  • HR roles will change based on digital transformation, and evolving during the 4th and 5th industrial revolution leading HR professionals to adapt with the necessary skills based on current and future competencies.

  • The standards within the South African context of professional bodies and associations are useful in understanding expected competencies related to skills.

CHAPTER 2: WORKFORCE PLANNING AND TALENT MANAGEMENT

Introduction
  • Talented employees are hard to replace because they are highly-skilled performers, leaders or potential leaders, innovative, and they contribute directly to revenue in the organization.

  • Talent management includes the implementation of integrated strategies and systems to attract, utilize, engage, develop, deploy, and retain these employees to meet the current and future business needs of the organization, and it is critical for organizational growth and competitiveness

  • Talent management affects excellence and innovation and entails the development, unleashing, sharing and using knowledge of all the organization’s members for continuous creativity and renewal of the organization.

2.2 Definition of Talent Management

  • Talent Management is the proactive design and implementation of an integrated talent-driven organizational strategy directed to attracting, deploying, developing, retaining and optimising the appropriate talent requirements as identified in the workforce plan to ensure a sustainable organisation (SABPP, 2013).

  • Defining the concept of talent management differs among organizations, where it may mean concentrating on the sustainability in one organization while for another, it might mean concentrating on identifying employees with high potential.

  • Talent management can mean on-boarding, identifying, evaluating, and/or developing the organization’s internal talent (Aina, and Atan, 2020).

2.3 Talent Management Standard

  • The talent management standard (SABPP, 2013) provides a framework to manage talent management.

  • The standard proposes that the organization must define the talent management philosophy and principles of talent management.

  • The framework also makes provision to determine the leadership and other key competencies required to execute the strategic objectives.

  • The organization should conduct workforce planning to determine the talent needs analysis.

  • The process of workforce planning must involve a labour market analysis to understand issues of labour supply and other labour market trends.

  • It also allows the organization to consider jobs of the future and skills needed for future jobs as a result of digital transformation.

  • Labour market patterns and the workforce analysis of what is needed provide an understanding of labour demand based on organizational needs and an understanding of labour supply trends that can be used to inform labour supply forecast.

  • Thereafter, a talent review using skills audit can be done to determine if the organization has a supply of relevant skills and competencies.

  • The organization also needs to assess if the skills and competencies to be developed would be ready in time as required.

  • This gives rise to a gap analysis i.e., an assessment of what is needed against what is available (internally and externally).

2.4 Talent management philosophies

There are four talent management types and dimensions:

  • Type, Dimension, Subject or object, Inclusive or Exclusive, Innate acquired, and Talent is based on input or output.

  • A blend of inclusive and exclusive talent management practices

  • Many organizations attempt to create a balance between inclusive and exclusive approaches to talent management, investing scarce resources in the most promising talent, but not at the expense or neglect of other employees (Gilmore & Williams 2013:166).

2.5 HR Strategies and Practices That Support Talent Management

  • Several HR functional areas and activities support talent management and must be aligned to the talent management strategy so that the organization attains a competitive advantage in effective management of talent in achieving the strategic objectives.

  • All HR processes and practices must be optimised and effectively managed to obtain the best results.
    *
    Several HR strategies include aligning talent with business needs, maximizing efficiency with the right people, along with workforce planning, development and competency for sourcing recruitment.

2.6 Succession Planning

  • Succession planning is a process for preparing people to meet an organization’s needs for talent over time, and is any conscious effort directed at ensuring continued effective performance of an organization or work group by making provision for the development, replacement and strategic application of key people over time.

2.8 Objectives of Succession Planning

  • To ensure the organization adopts a proactive approach to filling vacant roles thus facilitating a smooth transition and minimal interruption to business/operational continuity for both planned and unplanned vacancies.

  • Motivate and retain highly talented employees by creating growth and progression opportunities.

  • Transitioning highly specialized skills into key roles.

  • Preserving organisational knowledge.

  • Creating a talent pipeline of qualified, competent, experienced, and motivated staff to fill core vacancies.

  • To develop reliable assessment procedures that are applied systematically and consistently.

2.9 Steps in creating succession management plan or models

2.9.1 Alignment to organisational strategy
  • The succession plan must be aligned to the strategy of the organization.

2.9.2 Identify the key positions
  • After considering the implications of the organizational strategy for succession planning, five to ten key positions requiring skills that are scarce or critical must be identified.

2.9.3 Clarify Performance Metrics
  • After selecting the positions that are linked to the succession pool, the organization should define the core competencies required for success in these positions in the successive years.

  • This step will likely require a review of the job, an evaluation of future needs, and the specification of an endorsed organizational performance model.

  • Based on the job information, the organization can define position-specific metrics that will be the foundation of the succession plan.

2.9.4 Evaluating Bench Strength
  • After defining the competencies required for the position and the performance metrics to support it, the organization can evaluate current employees.

  • This step will provide a benchmark from which to compare candidates over time.

  • If candidates show little or no improvement, the plan may require amendments.

  • Additionally, by clarifying the current bench strength, companies can get a better idea of areas to be addressed for future improvement.

2.9.5 Build the Succession Management Pool
  • The most effective way to build a succession management pool is to use information from internal sources of information, including nominations from supervisors, talent assessment results, and overall performance data.

  • Speaking to supervisors enables leadership to thin a large number of candidates and get a better understanding of who is and is not a good fit.

  • Succession candidates should participate in talent assessments to determine their strengths and weaknesses. This will ultimately determine who succeeds.

  • Finally, each candidate should undergo a regular performance review.

2.9.6 Professional Development
  • After a pool is created, prospective candidates should work closely with their supervisors to create and specify a development plan that focuses on three to five goals that can be accomplished within the next six to twelve months.

  • Results from the candidates’ talent assessments can be integrated with performance feedback.

  • This way, candidates and supervisors can identify development opportunities.

  • If better performance is the destination, assessment results provide the directions.

2.9.7 Promotion
  • Qualified candidates should be notified that they are in the queue for a senior leadership position and be given a timeframe in which this transition is likely to occur so long as they meet the pre-determined performance metrics, which should be communicated clearly to candidates ahead of time.

2.10 Succession planning maturity model

  • The organization should determine its level of maturity and readiness to adopt succession planning.

2.11 Workforce Planning

  • Workforce planning is defined as getting the right number of people with the right skills employed in the right place at the right time, to deliver an organization’s short-and long-term objectives.

  • It covers a diverse range of activities, such as succession planning, flexible working, and job design.

  • Workforce planning should be linked to strategic business goals and viewed as an important part of the strategic business planning process.

  • Workforce planning is a process of detecting the size and competence of the workforce that an organization needs to help it achieve its strategic objectives, now and into the future.

  • It aims to ensure that the right people − those with the skills and capabilities necessary for the work – are available in the right numbers, in the right employment types, in the right place, and at the right time to deliver the organizational outcomes.

2.11.1 Trends affecting workforce planning
  • Disruptive and emerging technologies related to the Industrial Revolution such as virtual reality (VR), artificial intelligence (AI) and robotics will strongly influence the careers in the future.

  • The World Economic Forum (2020) and OECD (2018) identified the top skills required by the workforce as cognitive skills, social and emotional skills, and physical skills.

2.11.2 Process of workforce planning
  • Phases in the workforce planning process: alignment to the strategic objectives, demand analysis, supply analysis, gap analysis, strategies to implement workforce planning and evaluation and control.

Phase 1: Alignment of the workforce plan
  • Identify the mission, strategic goals, objectives, and business functions and strategies and discuss what changes may take place over the next five years that could affect the organization’s mission, objectives, and strategies.

Phase 2 - Determine the future workforce profile (Demand Analysis)
  • Forecasting labor demand means estimating the number of workers the organization will need in the future.

  • Two categories of forecasting techniques:

    • Quantitative methods (statistical information)
      Qualitative techniques (interviewing-related information) Two categories of forecasting techniques are used, namely quantitative and qualitative techniques. Quantitative methods (statistical information) are used more often, probably because it is believed that forecasting is more accurate if one has figures, statistics and metrics to work with.

  • The planner and users of these programs should have a basic working knowledge and the right training to do the forecasting

Phase 3: Current Workforce Profile (Supply analysis)

This involves estimating the availability of workers with the required skills to meet the company’s labor needs in the future.

  • Estimation begins inside the organization because labor information is readily available and is more accurate and relevant than information obtained externally, Skills and management information systems (MIS) are used to provide this information.

Phase 4: Gap Analysis
  • Identify and gaps and surpluses in staffing and skill levels needed to meet future requirements.

Phase 5: Strategies to implement the workforce plan

Strategies for labor demand exceeds labor supply include training, succession planning, outside recruitment, subcontracting, and part-time employment or overtime. Conversely, labor supply strategies include pay cuts, reduced hours, inducements to quit or layoffs. The workforce plan is a five-year plan aligned to the organization’s strategic objectives, in terms of setting objectives.

Phase 6: Control and evaluation of the workforce plan

Strategies must be amended in accordance with these changes. Exercising control and constant evaluation of workforce planning systems guides HR activities, by identifying deviations from the plan, and the causes of these deviations.

  • Quantitative measures are used more frequently in established planning systems, where key comparisons might include the following:

    • yield model or pre-need hiring processes of targeting senior positions, continuous searches utilizing gradual hiring, and pre-qualifying candidates to match skill sets while building pre-promotion positions.

2.12 Conclusion

  • Workforce planning process includes strategies to manage labor demand and supply, workforce planning process, and that talent management as integrated system all HR functions, while succession planning ensures that skills gaps are identified and addressed.

CHAPTER 3: RECRUITMENT AND SELECTION

  • Recruitment and selection are informed by considerations related to the human resources approach and local legislation.

  • Recruitment and selection practices must balance the need for internal corporate consistency, sensitivity to local labour practices and local culture.

  • Fit refers to the compatibility of a person with various aspects related to work.

  • The first fit is between the person and the job.

  • Countries may lack individuals with the necessary skills and, as a result, it may be necessary to hire expatriates.

  • Certain jobs may not be valued within certain countries, and this may make recruitment difficult.

  • Selection decisions are also complicated by the fact that some cultures value achievement whilst others value ascription.

  • Achievement cultures select employees on the basis of a candidate’s knowledge, skills and competencies whereas ascription cultures select employees on the basis of culture, age, gender and family status.

3.1 Introduction

  • Recruitment is a critical process in organizations following a process of talent planning, so there is a clear picture of the nature and requirements of the job that is vacant.

  • Competency-based recruitment is a newer trend in recruitment that encourages the recruitment panels to design assessments that experience instead of knowledge.

3.2 Definitions of recruitment

  • Recruitment refers to the process where potential applicants are searched for and then encouraged to apply for an actual or anticipated vacancy.

3.3 Definition of Selection

  • Selection is the process of hiring employees among the shortlisted candidates and providing them a job in the organization.

3.4 Factors that Influence Recruitment

Several factors, which may be internal or external, influence the recruitment process.

3.4.1 Internal factors
  • Involve the identification and analysis of the internal environment of the organization such as organization policy, organizational culture and pay conditions for attraction of suitable candidates.

3.5 External Factors
  • Involve the systematic identification and analysis of key trends in the external environment, and the monitoring of their impact on HR planning.

    • Government or trade union restrictions

    • Labor market: vital that the human resource department is familiar with current trends

    • Image of the company

3.6 Recruitment Sources

  • It is important to consider all options before recruiting in using overtime, mechanizing the work staggering hours, hiring graduates, sub-contracting, agency use, updated equipment, outsource consultants or sales increases using website order for those businesses that handle recruitment issues.

3.6.1 Internal Recruitment Sources
  • An internal recruitment strategy is characterized by promoting employees from within an organization to fill upcoming positions.

    • existing employees

    • referrals from current employees

    • former employees

3.6.2 External recruitment sources
  • External recruitment occurs when the employer uses a source outside of the organization. Some methods include:

    • Advertisements

    • Employment agencies

    • Tertiary institution recruiting

    • Government agencies

    • Flyers and direct mail

    • Internship/learnership programmes

3.7 E-recruitment

  • E-recruitment is the electronic method of recruiting as an invaluble tool for HRM including mobile advertising, video streams, social networking to reach applicants at a relatively inexpensive price.

3.8 Recruitment Process

  • There are two basic issues to bear in mind: the cost of recruiting (regardless of the method being used); and the selection ratio (the number job positions to the number of job applicants).

  • Recruitment is crucial in the overall selection-placement process that is a combination of planning identifying internal or external sources.

3.9 Current and Future Trends in Recruitment

  • External driving forces like slower labor force growth, existing skills and labor shortages and stunted economic growth will influence recruitment policies.

  • The pressure will be on to improve labor productivity.

  • Recruiters will have to find ways to respond to the experienced baby boomers (people now in their sixties) moving out of the workforce, and the demands of generations X and Y who are more computer literate, such as with telecommuting, teleworking and employee leasing.

3.10 Workforce Planning and Recruitment

  • identifying and choosing the most competent individual to perform a certain job from a pool of candidates resulted in that many skilled individuals were employed who perform reasonably well, but were not necessarily contributing directly to organizational goals.

3.11 The Importance of Staffing Decisions

Staffing helps in:

  • ascertaining and locating competent people for various jobs, improve the quantity and quality of the output by putting the right person in the right job, improve job satisfaction of employees, facilitate higher productive performance, reduces the cost of personnel, facilitating the growth and expansion of the business.

3.12 Selection

  • Tools available to those making these selection decisions are: application blanks, applicant’s personal data, background and employment history.

  • Assumptions are that past behaviour predicts future behavior.
    *

3.12.1 Factors that influence the selection decision

The impact can be on the success of the selection decision, and also on the level of difficulty involved in working through the entire process when certain factors are internal and external to the organisation.

  • banfield and kay (2012) refer to the influence of legislation and culture in different countries and their influence on the selection process with differing policies on requirements for interviews, resumés as well as legal actions involving discrimination
    *

3.12.2 Factors in the external environment

Legal factor considerations for legacies of discrimination that have denied the majority of South Africans access to opportunities for employment. An Employment Equity Act ensure workforce free of discrimination and promotom of Active Steps to promote employment equity where those designated are preferred, for better markets. The labor market is influenceced by market affectiing conditions as well as content and company image to ensure that people are in a virtual and physical environment.

3.13 Conclusion

This chapter focused on the:

  • recruitment process and identifies the internal and external factors that influence recruitment.

  • discusses E-recruitment, the selection process, and the internal and external factors that influence selection.

CHAPTER 4: INDUCTION AND SOCIALISATION

  • Orientation includes activities to familiarize the new employee with the company, and activities of induction must have a ritual character to help the new recruit settle in and feel part of the company, focusing on developing attitudes and values that are of interest to the company.

  • Induction assists new employees to settle in and adjust to the organisational culture, which means a responsibility to implement all the organizational policies.

4.1 Introduction

  • In induction, the broad purpose is to introduce the new employee to the organization’s goals and objectives and to provide an overview of the organization’s culture. This is often confused to onboarding which looks at processes of instilling in employee organizational cultures.

4.2 Objectives and Benefits of Induction

  • Integration of new employees through reduction of cognitive dissonance, increased job satisfaction reducing high levels turnover, reducing anxieties, create positive values, and improve relations between managers and personnel.

4.3 Induction Programme

Provide orientation of history, strategy, Code of conduct, organizational structure for governance, administrative issues, and policies that will ensure smooth onboarding transitions.

4.4 Buddy System

A buddy