HRM5SGMod2-V2 1 PDF

BUSINESS MANAGEMENT TRAINING COLLEGE
SOUTH AFRICA S MOST PRESTIGIOUS DISTANCE EDUCATION BUSINESS COLLEGE

PERSONNEL PLANNING
147 Second Road - Chartwell - Fourways | Private Bag X100 - Bryanston - 2021
Tel: 011-708-0159 | Fax: 086-639-4687 | E-mail info@bmtcollege.edu.za
www.BMTCol l ege.edu.za
2010 First Edition - First Print June 2010
2011 Revised - First Print September 2011
Copyright 2010 - All rights reserved.

No part of this publication may be reproduced, stored in a retrieval system,
or transmitted in any form or by any means, electronic, mechanical,
photocopying, recording, or otherwise, without the prior written
permission of the copyright owner, BMT College.
Business Management Training College (Pty) Ltd
2

ON COMPLETION OF THIS CHAPTER, YOU WILL BE ABLE TO:
1. TUTORIAL INTRODUCTION
We trust that you are finding your studies towards this qualification rewarding.
This Module is based on the following Unit Standards:
11911 (5 credits); Manage individual careers
252034 (8 credits); Monitor team members and measure effectiveness of
performance
12140 (9 credits); Recruit and select candidates to fill defined positions
7848 (5 credits) ; Manage the induction of new staff
11907 (3 credits); Draft an employment contract

It is very important that you work through the study material as this will prepare
you for the Formative and Summative Assignments at the end of this Module.
In order to complete the Qualification or Certificate you need to be found
competent against all the Assessment Criteria for the Unit Standards in this
Module.

2. HOW DOES THIS MODULE WORK?
This Module is grouped into five different chapters and each Unit Standard
corresponds with a specific chapter. See the table below:
The programme manual fulfils the purpose of a tutor, and will effortlessly guide you
through the training material. Each lesson teaches you about a specific topic.
Make sure you understand the topic of the current lesson before you proceed to
the next lesson.

If at any time you require assistance, please contact one of the study advisors at
BMT College who will promptly assist you with any queries.
READ THIS BEFORE YOU DO ANYTHING ELSE!
Each chapter starts with a title followed by what you will learn in the chapter.

E.G. CHAPTER 1
MANAGE INDIVIDUAL CAREERS

Gather and analyse information for individual career planning.
Facilitate and manage the career planning process.
Monitor individual career progress.
Each lesson starts with the Assessment Criteria.

E.g. ON COMPLETION OF THIS LESSON YOU WILL BE ABLE TO:

1.1.1. Gather information about the individual using career planning tools and
assessment instruments that are relevant, valid and utilised effectively.

These statements are formulated by the South African Qualifications
Authority (SAQA) with the purpose to let the learner know how he/she will
be assessed in order to be declared competent against the Unit Standard.

YOU ARE NOT REQUIRED TO ANSWER THESE STATEMENTS.
We are only informing you on WHAT you need to know on completion of
each the lesson.
3
STUDY INSTRUCTIONS

Indicates the start of a new lesson

Indicates the start of a Chapter (also top left of STUDY chapters)
Indicates the prescribed text book: South African Human
Resource Management Theory and Practice Fourth Edition,
Ben Swanepoel (editor) published by JUTA
ISBN 978-0-70217-750-7.

Indicates the prescribed text book: South African Human Resource
Management Theory and Practice Third Edition Text book, Ben
Swanepoel, (editor) Barney Erasmus, Marius van Wyk and Heinz
Schenk published by JUTA ISBN 0 7021 5845 3.

Usually an explanation or definition of a concept or vocabulary
term referred to in the lesson.

Refers to study and research information in the text book or
programme manual.

Take a break from your studies!

Making notes while you study is very important. Spaces have
been allocated throughout this manual for this purpose

SAQA Assessment Criteria (YOU ARE NOT REQUIRED TO
ANSWER THESE STATEMENTS)

Practical example.

Steps to be followed in order to complete/execute/do a specific
action or task.

Checklist when doing specific procedures.

References to websites or information on the provided textbook
CD.
3. ICONS USED IN THIS MANUAL

L LESSON ESSON
1.1 1.1

OR
ONLY NEED
ONE OF THE
TEXT BOOKS
4

4. COMPLETING THIS MODULE AS PART OF THE DIPLOMA PROGRAMME:
This module should be studied as module two of the Diploma in Human Resource
Management and Practice.

The table below include the SAQA ID of the Diploma qualification as well as the
unit standards in this module.

HOW TO COMPLETE YOUR ASSIGNMENT

5. COMPLETING THE ASSIGNMENT QUESTIONS:
The Formative Assignment must be completed on the provided question paper
and the answers must be filled in on the grey space provided for your answers.
You need to complete ALL the formative questions of all the chapters in a module.
Unless the College granted you Recognition of Prior Learning (RPL) exemption
from a Unit Standard/Chapter. If you do not understand a question, phone or e-
mail your assessor to get assistance. ALL questions need to be completed in
order to be found competent.
Answers to Summative Assignment must preferably be typed as this eliminates
the possibility of an assessor marking the answers incorrect due to the illegibility
(unclearness) of the handwriting.
Each question must be marked clearly. The question numbers must not be placed
in the left margin but at the top of the answer. Draw a line after each question.
See the example below.
DIPLOMA LEARNERS NEED TO COMPLETE A SUMMATIVE ASSIGNMENT FOR EVERY STUDY
COMPONENT. (See the table on page 6) Attempt the Summative Assignment after you
have successfully worked through the modules and completed all the Formative
Assignments (e.g. You have completed and submitted the Formative Assignment for
module one and completed the Formative Assignment for module two, now complete
and submit the Summative Assignment for Study Component 1. The Summative
Assignment for Study Component 1 will assess the content of module one and two.
Read the explanation about formative and summative assessment on pages 6 to 7.
.
E.g. Question 1.1
An example of a breakfast cereal is Kelloggs.
_______________________________________________________________________
SAQA
SPECIALISATION ID
SAQA Qualification Title
49692 National Diploma: Human Resource Management
NQF Level Credits Qualification Type
5 249 National Diploma
Duration for this
Module
Credits in this Module: Module Type
3 months 26 Core
US ID Unit Standard Title Chapter
11911 Manage individual careers 1
252034 Monitor team members and measure effectiveness of performance 2
12140 Recruit and select candidates to fill defined positions 3
7848 Manage the induction of new staff 4
11907 Draft an employment contract 5
5
STUDY INSTRUCTIONS

Use single sheets, front side only
The Formative and Summative Assignments may be submitted simultaneously or
separately. In other words you may first complete and submit the Formative
Assignment and then after you received feedback complete and submit the
Summative Assignment, or you can submit both assignments at the same time.

6. BEFORE SUBMITTING YOUR FORMATIVE AND SUMMATIVE ASSIGNMENTS:
Make sure your name, surname and student number is on every page.
Check that each page is numbered in the lower right hand corner of the page.
Place the formative question paper inside the BLUE Formative Assignment Cover
provided.
Place the answers to your Summative Assignment inside the YELLOW Summative
Assignment Cover provided.
Use a file binder to bind the Assignment Cover and your assignment together.
Hand deliver your assignment to BMT College or post it to BMT College, Private
Bag X100, Bryanston, 2021.
Always keep a copy of your assignment (in case your assignment gets lost in the
post) as BMT College can not take any responsibility for lost assignments.
Each assignment must be certified under oath (at any police station or post office)
to be the original work of the candidate.
Only the original certified answers will be accepted for assessment.
No photocopied, faxed or e-mailed assignments will be excepted.

7. RESULTS OF YOUR FORMATIVE AND SUMMATIVE ASSIGNMENT:
Your Formative and Summative Assignment results will be outlined in a results
letter at the end of each Module.
Your Formative Assignment will count 25% toward your final result for a Study
Component and your Summative Assignment will count 75% of your final result for
a Study Component.
To pass and to be advanced to the next Module, you need a final result of 50%.
If you do not obtain a pass mark of 50%, you will be required to re-do those
sections of the Summative Assignment that you did not master. Please do not
leave out any questions!
Even though your progress will be followed by a study advisor, it will not be
possible for the assessor to comment on each answer you submitted. This
preventative measure is taken to eliminate irregularities of sharing memorandum
answers with fellow students.
You are required to answer all your questions without the help of any other person
other than a study advisor of BMT College.

8. OPPOSING YOUR RESULTS:
You have the right to appeal against the results of your studies.
When opposing your mark, you are required to fill in an Assessment Appeals Form
(No. BMTC FRM5060-02). This form can be downloaded from the website or
requested directly from the College.
The Assessment Appeals Form needs to be submitted to the College.
It is in the interest of BMT College for students to enjoy their learning experience.
If there is anything we can do to support you as a learner, please do not hesitate
to contact us.
6

!
NB
Assignment (tests) structure for the two year diploma qualification
Study
Process
Formative Summative Next action from the College?
STUDY COMPONENT 1
Step 1 Complete and submit
Module 1 Formative
Assignment Questions
NO SUMMATIVE DUE
after Module 1
College will mark Module 1
Formative Assignment and posts
Module 2.
Module 2
Formative Assignment
Questions
Complete and submit the
Summative Assignment on
Module 1 and 2
College will assess Module 2
Formative and Summative
Assignments. Learner receives
results of Study Component 1. The
College posts Module 3.
STUDY COMPONENT 2
Module 3 Formative
NO SUMMATIVE DUE
after Module 3
Formative Assignment and posts
Module 4.
Module 4
Questions
Module 3 and 4
results for Study Component 2. The
College issues a progress report on
completion of the first year and post
Module 5.
LEARNER ENROL FOR THE SECOND YEAR OF THE QUALIFICATION
SECOND YEAR OF THE QUALIFICATION
STUDY COMPONENT 3
Module 5 Formative
NO SUMMATIVE DUE
after Module 5
Formative Assignment and post
Module 6.
Module 6
Questions
Module 5 and 6
College posts Module 7.
STUDY COMPONENT 4
Module 7 Formative
NO SUMMATIVE DUE
after Module 7
Formative Assignment and post
Module 8.
Module 8 Formative
Module 7 and 8
College posts FISA.
FINAL INTEGRATED SUMMATIVE ASSESSMENT (FISA) Module 1-8
Step 9 NO Formative
Assignments Questions
FISA
The Final Integrated Summative
Assessment (FISA) will be your final
assessment covering the Exit Level
Outcomes of the Qualification.
7
STUDY INSTRUCTIONS

YOU WILL BE REQUIRED TO SUBMIT TWO TYPES OF ASSIGNMENTS (TESTS):

1. FORMATIVE ASSIGNMENTS:
The Formative Assignment question paper can be found in the BLUE Assignment
Cover in your study pack.

2. SUMMATIVE ASSIGNMENTS:
The Summative Assignment can be found in the YELLOW Assignment Cover in
your study pack. A Summative Assignment will ONLY be included if there is one
due at the end of that specific Module. Refer to the table on page 6.
NB: Please do not feel anxious about the Summative Assessments. The
Formative Assignment Questions will prepare you for the Summative Assignment.

WHAT IS THE DIFFERENCE BETWEEN THE TWO TYPES OF ASSIGNMENTS?

1. FORMATIVE ASSESSMENTS:
All Modules have Formative Assignment Questions related to the specific chapters
in the programme manual that you have just studied. These assignment questions
test your basic knowledge, they are compulsory and must be submitted for
marking unless the College granted you RPL exemption from certain Unit
Standards. The official letter from the College must accompany your assignment
stating the exempted Unit Standards.

2. SUMMATIVE ASSESSMENTS:
At the end of a Study Component you need to submit a Summative Assignment.
See the table on page 6. The Summative Assignments tests your application of
the knowledge and skill you have gained on a variety of Unit Standards combined
(integrated assessment). The Summative Assignment are compulsory for all
learners (those granted RPL exemption as well). A Summative Assignment will be
included in your study pack when you need to complete one.

Studying through BMT College is a stress free and pleasant life enriching
experience. You will gain knowledge and skills through continuous assessment.
The College has a teach-test-teach-test approach to learning to ensure that you
work through the study material and understand the work before continuing to the
next level.

When you have completed and have been found competent against all Unit
Standards and Exit Level Outcomes of the qualification, your name will be
uploaded onto the National Learners Record Database (NLRD). This will ensure
that your qualification will be recognised nationally.

Studying has never been so rewarding and recognised! Your study material is
issued to you in workable modules to eliminate confusion with assessment.
Our central computerised system will automatically issue the next module once you
have been found competent against a module, thus, there is no need to request the
next module if your payments are up to date.
8

N NOTES OTES: :

STUDY PLANNER
Pages in
study
guide
Lesson/
Chapter
Topic of the Lesson

Suggested
Duration
(in hours)
Expected
time of
completion
(learner to
complete)
Write the date
that you project
to complete the
lesson or task
Chapter 1 Manage individual careers
12-25 1.1
Gather and analyse information for career
planning
4
26-33 1.2
Facilitate and manage the career planning
process
4
35-37 1.3 Monitor individual career progress 2
Chapter 2 Monitor team members and measure effectiveness of performance
38-53 2.1 Formulate performance standards 5
55-73 2.2
Establish systems for monitoring
performance
6
74-79 2.3 Prepare for a performance review 4
80-81 2.4 Conduct a performance review interview 6
Chapter 3 Recruit and select candidates
82-111 3.1
Plan and prepare for recruitment and
selection
4
112-124 3.2 Recruit applicants 4
125-139 3.3 Select staff. 4
Chapter 4 Manage the induction of new staff
140-153 4.1 Manage the induction process 4
Chapter 5 Draft an employment contract
154-177 5.1 Draft various employment contracts 5
Formative
assignment
Assessment on content of lessons 1.1. - 5.1.
Questions stated per Unit Standard.
Complete the answers on the provided
space for your answers on the question
paper found in the BLUE Assignment Cover.
2 hours
Summative
assignment
Assessment on content of all lessons in
Module one and two. Question paper
provided in the YELLOW assignment cover.
Assignment must be signed by a
Commissioner of Oath.
5 hours
9

INTRODUCTION INTRODUCTION

Copyright Business Management Training College (Pty) Ltd
10
Human resource
management
Human resource management: Goals

Human resource management: Activities
ABOUT MODULE TWO:
11
HUMAN RESOURCE MANAGEMENT: GOALS

The main goal of human resource management (HRM) is to assist the
organisation to attain its goals.

The human resource management goals are as follow:

HUMAN RESOURCE MANAGEMENT: ACTIVITIES

There are four main areas of people management. These are:
1. Human resource provision
2. Development
3. Motivation
4. Maintenance

These activities can be subdivided as follows:

HUMAN RESOURCE MANAGEMENT : GOALS
RECRUITMENT Attracting skilled applicants to fill the positions in the organisations
APPOINTMENT Appointing suitable candidates for the positions
JOB
SATISFACTION
Ensuring that the employees needs are met to ensure smooth running of
all functions within the organisation
PRODUCTIVITY Assisting managers and supervisors to increase the productivity levels by
implementing training and staff incentives.
DEALING WITH
INTERNAL AND
EXTERNAL
PRESSURES
Assist managers to deal with internal pressures such as labour disputes,
grievances etc. and external pressures such as the economic recession.

HRM
ACTIVITIES
Development
Induction
Training
Development
Career planning
Motivation
Job satisfaction
Compensation
Performance appraisal
Rewards/incentives
Counseling / discipline
Maintenance
Benefit
administration
Health & safety
Labour Relations
Record keeping
HRM provision
HR planning
Job analysis
Recruitment,
selection and
placement

C CHAPTER HAPTER 1 1

12
Manage individual
careers

Gather and analyse information for individual career planning.

Facilitate and manage the career planning process.

Monitor individual career progress.
5 50
13
CONCEPTS AND VOCABULARY TERMS YOU NEED TO UNDERSTAND:
ON COMPLETION OF THIS LESSON YOU WILL BE ABLE TO:

1.1.1. Gather information about the individual using career planning tools and
assessment instruments that are relevant, valid and utilised effectively.
1.1.2. Analyse gathered information to identify and develop an individual profile.
1.1.3. Gather relevant information about organisational goals, strategies and needs to
facilitate individual career planning.
1.1.4. Analyse and integrate individual and organisational information to compile an
individual career profile.

L LESSON ESSON 1.1 1.1

GATHER AND ANALYSE INFORMATION FOR
INDIVIDUAL CAREER PLANNING.
Career is a profession for which one trains. A career can be defined as a
series of jobs that follow a hierarchy of levels or degrees of difficulty,
responsibility and status. The above definition allows an individual to change
occupations by trying work on any level, not necessarily on a higher level.
Career development refers to the programmes and activities which
individuals undertake to achieve their personal career plans.
Career planning is a process by which an individual analyses his/her work
situation. This is a process of choosing an occupation; organisation and/or
activities to attain individual career goals.
Career path is the successive pattern of jobs, which form the individuals
career. From the organisations point of view a career path can be regarded
as flexible lines of progression through which an employee normally moves
in his/her career. A Career path is the graduated progression of positions
which individuals may follow in order to reach their desired position.
Career pathing is a process of mapping logical and possible sequences of
positions to which an employee can be promoted, transferred or rotated.
Career management is the process through which the organisation is
designing and implementing goals, plans and strategies to satisfy human
resource needs while allowing individuals to achieve their career goals. This
is the process of deciding on a career path and engaging in activities related
to the attaining of career goals. These activities include highlighting the
candidates strengths and weaknesses, values and career preferences as
well as the planning involved to develop all these aspects.

14

INTRODUCTION

Career development refers to the process of planning and shaping the
progression of employees within the organisation according to business needs
and employee preferences. Career management involves the integration of career
planning and career development. Although the ultimate responsibility for career
development rests with the individual, the HRM function has a complementary
responsibility to assist employees in managing their own careers.

THE IMPORTANCE AND REASONS FOR INTEREST IN CAREER MANAGEMENT
Klatt/Murdick/Schuster (1985) defines the following reasons:
Technological changes have resulted in dismissals and under-employment,
causing both individuals and organisations to recognise the need for planning a
career and developing new skills.
Increased education has created rising expectations about what constitutes a
happy and full-filling life. The new generation of younger employees wants
greater job satisfaction and more career options.
Shortages of competent managers and certain skilled, professional and technical
workers has resulted in organisations looking for ways to develop such personnel
from within the organisation through career planning and development.

Gerber, Nel & Van Dyk (1998) adds the following reasons:
To cope with global competition and the threats of highly increased mobility of
professional employees in particular.
Career management reduces staff turnover in the organisation. Employees
experience less frustration and greater job satisfaction because they know they
can advance in the organisation.

Career management is an integrating function as illustrated in Figure 1.

CHAPTER 1: CAREER MANAGEMENT
Figure 1 : The Career Management Model (Klatt/Murdick/Schuster 1985)
Career Management
Organisational
Career Planning
Individual Career
Planning
Integrate Organisational
Needs and Individual Career
Plans
Career Development
15
LESSON

1.1
THE CAREER MANAGEMENT FUNCTION
Career management is related to all the human resource development activities,
including recruiting; selection; training and development, promotion and
compensation. Career management must also form an integral part of human
resource planning to be successful.

RESPONSIBILITY FOR CAREER MANAGEMENT
Career management is a shared responsibility. It normally requires effort from the
individual employee, the organisation and the employees immediate manager.
The ultimate responsibility for career planning and development lies with the
individual employees, because they know what they want from their career and
how hard they are prepared to work for it.

The organisation is responsible for the administration, maintenance and effective
utilisation of a career management programme the organisation has to provide
the means and structure for development. The employees immediate manager
provides the resources. The manager should act as a communicator, counsellor,
appraiser, coach and mentor, thus ensuring that the employee gets the
appropriate information for furthering his/her career.

THE THREE MAIN PARTICIPANTS IN THE CAREER MANAGEMENT PROCESS:
1. THE INDIVIDUAL
2. THE HUMAN RESOURCE MANAGER
3. TOP MANAGEMENT
THE INDIVIDUAL
Responsibilities Main responsibility of career management lies with the
individual.
Must decide how much time and effort he/she wants to spend
on developing his/her career.
Decide on goals and abilities.
Gather information
on the following
Information about talents, interests, values and lifestyle
preferences.
Information about alternative occupations, jobs and
organisations.
Develop a career
goal strategy
List the individual career goals based on the information
gathered above.
Develop and implement a plan to achieve the above goals, by
listing the activities needed to reach the goals.
Obtain feedback Get feedback from other role-players on the effectiveness of
the above strategy and the relevance of the goals.
Regularly monitor career progress to assure the attainment of
career goals.
INDIVIDUAL CAREER PLANNING
Gerber, Nel & Van Dyk (1998) states: career planning is a process whereby
an individual sets career goals and identifies the means to achieve them. The
responsibility for career planning rests primarily with the individual, but he will
need support from supervisors and the organisation in general.
16

INDICATORS OF EFFECTIVE CAREER MANAGEMENT
Greenhaus states that since career management is a problem solving, decision
making process, it is tempting to examine the outcomes of career decisions at a
particular point in time to assess the effectiveness of career management
practices. One could, for example, look at advancement in title or responsibility,
level of job performance or degree of career satisfaction to gauge the
effectiveness of career management.
Since career management is an ongoing, adaptive process, a snap shot view of a
persons status does not reveal the effectiveness of career management.

Greenhaus (1987) identifies four indicators of effective career management:
1. Effective career management requires a deep knowledge of oneself and an
accurate picture of the environment.
2. Effective career management requires the development of realistic goals that are
consistent with ones values, interests, abilities and desired life style.
3. Effective career management requires the development and implementation of
appropriate career strategies.
4. Effective career management requires a continual feedback process that permits
adaptation in the face of changing circumstances.
"Career planning is the responsibility of both the organisation and the individual.
More and more organisations are establishing formal career management
THE HUMAN RESOURCE MANAGER
Responsibilities The HR manager is a facilitator in the career
management process.
Counselling The HR manager should council the employee on various
career options available to him/her.
Conduct test Test the employee for aptitude and ability.
Provide training Suggest relevant training programmes.
Set objectives Set developmental objectives for the employee to reach
the individual goals.
Facilitators Provide competent facilitators or provide training
providers that can assist the employee to develop the
required skill and knowledge.
TOP MANAGEMENT
Responsibilities The organisation should provide career development
opportunities.
Determine
demand/
forecasting
Determine the demand for and availability of specific
positions.
Training budget Allocate a budget for training purposes.
Equal access Ensure equal access to career management.
17
LESSON

1.1
programmes and are including the individual in career planning. To be effective,
career planning must find a workable balance between the organisations human
resource needs and the individuals career goals.

Proactive career planning provides such company benefits as:
an upgrading of the work force for increased productivity;
lower absenteeism;
lower turnover and hence savings in recruiting costs;
increased goodwill and better business contacts as the organisation helps
executives to move to other companies (since room at the top is limited).
(Klatt/Murdick/Schuster (1985)).

A number of studies identified four factors that affect career choice as follows:
1. Career planning begins with understanding oneself; each individual needs to
identify his personality characteristics.
2. Interests: We tend to follow careers that are matching our interests.
3. Personality: Our choice is affected by our personal orientation as well as our
needs such as affiliation, achievement and power.
4. Social background refers to the following: education; occupational level and socio
-economic status of the parents.

Cascio (2006:391) suggest three main reasons why career management systems
sometimes fail in practice:
Employees believe that their managers do not really care about their career
development;
Employees and the organisation, both are not fully aware of the employees needs
and organisational constraints;
Career plans are developed without regard for support systems necessary to fulfil
them.

ADVANTAGES OF CAREER MANAGEMENT
EMPLOYEE EMPLOYER
Job satisfaction due to predetermined
career paths
Satisfied staff are unlikely to resign. The
organisation retains highly skilled staff
and motivate workers.
The individual can reach individual
career goals that will lead to higher
productivity levels.
The organisation can reach its strategic
goals, by reaching the individual career
goals
Affirmative action measure and skill
development strategies ensures equal
opportunities in career development
The organisation can reach its goals
defined in the skill development plan
Employees acquire and develop new
skill, thus ensuring that employees are
updated in the latest technology such as
computer related skills.
The employees will learn new skills as
part of the career management plan and
this will benefit the organisation in terms
of highly qualified and capable staff.
18

Career stages: A useful way to understand careers is to determine the current
career stage of the individual. Every individual employee goes through some
distinct career stages regardless of the work he/she does.

Stage 1:
Exploration: During this stage employees are trying to find themselves and fit into
the working role. During this stage the individual refines his occupational self-
image, explore the qualities of alternative occupations and develop at least an
initial occupational choice.
Stage 2:
Establishment: In this stage, the employee becomes involved in new work
experiences such as special assignments, transfers and/or promotions. The
employee and the organisation must discover the capabilities of each other. The
organisation gives experience to individuals with high potential which allow them
to compete for higher level positions.
Stage 3:
Mid-career: By the mid career stage work assignments are of a more vital nature
and mistakes carry penalties. Individuals who are successful receive greater
responsibilities and rewards. Those who fail face a time of reconsideration,
adjustment of career plans or job changes.
Stage 4:
Disengagement: Disengagement may take many forms. Some individuals will
settle for a slower growth or a plateau while other employees may disengage
from the fast pace and instead decide to become more of a teacher and mentor.

CAREER PLANNING PROCESS
For an individual to plan his career, Klatt, Murdick and Schuster (1985) suggests a
three-step decision format to be use.

1. Gather information on your individual interests, skills and values.
2. Convert this information into general career fields and specific goals.

C
a
r
e
e
r

G
r
o
w
t
h

Aging
Exploration
Establishment
Disengagement
Midcareer
Advancement
19
LESSON

1.1
3. Test your choice against reality.

ORGANISATIONAL CAREER PLANNING
The major aim of career planning is to ensure that the goals of the organisation
are smoothly achieved through utilisation of human resources. The organisation
needs to ensure that sufficient numbers of qualified employees are available when
vacancies occur or expansion takes place.
Klatt, Murdick and Schuster (1985) proposes four steps for organisational career
planning:
1. Identify employees in the program: Ideally all employees should be in the career-
planning program. Companies tend to identify only managers, professionals, and
some clerical-secretarial groups in their career planning systems. This leads to a
tremendous loss in appreciation of human resource assets.
2. Establish career paths: This involves establishing career paths that show logical
progression of people between jobs. These paths are routes that a worker can
follow to advance in certain organisational units.
3. Establish program responsibilities: Responsibility for the career planning and
development program should be established according to management policies.
These responsibilities must be divided between line management and the human
resource department specialists.
4. Develop individual plans: To be able to develop individual plans the organisation
must keep extensive and frequently updated records on each individuals skills.
The employee must be informed about career opportunities and career paths.
Where it is possible everyone in the organisation should have a superior to go to
for career advice.
The two most important components of career development is:
JOB ASSIGNMENTS AND TRAINING EXPERIENCES

JOB ASSIGNMENT
A variety of job assignments should be included in a career development
programme. The number and length of the assignments will depend on the
individual career plan. Job assignments can take the form of lateral transfers;
vertical promotions or assignments organised around new tasks. New
assignments present new experiences to the employee, which can provide
feedback that will suggest new challenges and responsibilities.
Career development refers to the programmes and activities which individuals
undertake to achieve their personal career plans. It is a long term process
covering an employees entire working career. Career development is also a
formal approach by the organisation to ensure that employees with appropriate
qualifications and experience are available when needed.
Performance gap: Employees identified to receive training are the actual ones
who should receive the training. Training programmes must therefore be
designed to fill the gap between actual and desired performance.
20

TRAINING AND OTHER LEARNING EXPERIENCES
The employees individual developmental needs should be identified, based on
targeted career goals. Action plans must be set up which will move the employee
towards these goals. These action plans will identify the training and other
learning experiences needed.

CAREER DEVELOPMENT METHODS

Gerber, Nel and Van Dyk (1998) identifies the following methods used in carrying
out career development:
Performance appraisal is a valuable tool for career development because the
strengths and weaknesses of employees are assessed.
Workshops lasting two or three days can be used to assist employees with the
planning and development of their careers.
Career counselling by the human resources department or outsiders can assist
employees on their careers.
Tailor-made materials such as company brochures showing future plans and
expansion can assist employees in their career development and planning.
Management by objectives could be an excellent way to assist employees with
career development, as management and employees jointly agree on ways to
achieve the organisations goals.

TOOLS AND INSTRUMENTS THAT CAN BE USED TO GATHER AND ANALYSE INFORMATION
FOR CAREER PLANNING PURPOSES:
Information about abilities
Information about values
Technical skills and competencies
Career anchors
Career phases
Lifestyle preferences
Performance information
Individual needs and interests
Assessment centre information

CAREER ADVANCEMENT STRATEGIES:
Training and development interventions
Self empowerment
Networking
Mentorship

THE STEPS IN THE CAREER MANAGEMENT PROCESS
1. Exploration
2. Awareness
3. Career goal
4. Decide on accomplishment
5. Career strategy
6. Implementation
21
LESSON

1.1
7. Progress
8. Feedback
9. Career appraisal

WHY IS IT IMPORTANT TO MANAGE INDIVIDUAL CAREERS?

Individual analysis focuses on the employee and is used to identify employees
for training. Specifically, the two purposes of individual analysis are to determine:
1. Who currently needs Training and Development.
2. What skills, knowledge, abilities or attitudes needs to be acquired or strengthened
now and for the future.

For some people their dreams for their career and life mission are
interchangeable, for others perhaps not. Another way to phrase "What is your life
mission?" may be "What do you feel you want to contribute to the world?"
THERE ARE MANY DIFFERENT WAYS TO ENCOURAGE INDIVIDUALS TO SHARE THEIR
CAREER ASPIRATIONS.

Sometimes the need for training and development is not clear to employees. They
may consider it a waste of time and resist being taken away from their jobs.
Training and development can be encouraged by involving the trainees in either
choosing or planning the Training and Development needs. An effective way of
motivating staff is to demonstrate to them how training and development will help
them to accomplish their personal goals and those of the company.
But what are these goals they may ask?

1. It may include improved job performance due to the ease of performing the task on
completion of training. A new easier method of performing a task is
demonstrated to the trainee.
2. Increased opportunities for promotion.

THE SEVEN MAJOR PURPOSES OF TRAINING AND DEVELOPMENT:
1. Improved performance
2. Update employees skills
3. Avoid managerial obsolescence
4. Solve organisational problems
5. Induct new employees
6. Prepare for promotion and managerial succession
7. Satisfy personal growth needs.

THE REASONS WHY EMPLOYERS USE COMPETENCY-BASED REWARDS ARE TO:
motivate people and to encourage better performance;
increase flexibility amongst the workforce;
Competency is the behaviour, skills, knowledge or capacity, that describes the
expected performance in a particular work context, example: job function. When
they are appropriately developed they are the standard of success that support
the strategic plan, vision, mission and goals of the organisation.
22

change employee behaviour;
give employees access to job progression and to allow some form of job
progression where no other form of promotion opportunities exists.

Assessors performing the career management process must on completion of
assessment inform candidates of further learning on other unit standards that will
complement the training completed by the learner or other units standards that
could be studied to achieve a full qualification. The company policy on training and
development as well as the Training and Development Plan of the Company
needs to be considered when deciding or suggesting further learning.

Career development must be supported and sustained by means of an articulated
educational system, recognised career structures and flexible enough to provide
career mobility, and access to entrepreneurship and/or independent practice
opportunities.
Career mobility provides incentives for professional development and fosters
higher levels of job satisfaction. Appropriate reward mechanisms need to be
promoted, introduced and maintained so that achievement is rewarded by
recognition, advancement and/or remuneration.

Access to continuous education is critical and a fundamental workers right.
Continuing education should be available to all personnel, using suitable means to
reach those working in isolated areas.
Organisations must be committed to developing, promoting and facilitating a
comprehensive, integrated framework for skills development. This framework
should include attractive and viable career structures that will support recruitment
and retention of qualified staff.

It is essential that organisations and other bodies facilitate career development for
staff by means of educational and career systems that provide opportunities for
staff to move from one category to another, or to other positions within or outside
the business environment that they are currently working in. To develop such
systems, it is necessary to identify the core of knowledge, skills, attitudes and
scientific principles for a business environment.

ADVANTAGES OF CAREER MOBILITY
Career mobility is an important factor to furthering staff careers and to the society
in allowing staff to adapt and respond to the changing organisational needs.

Career mobility enables staff to achieve personal career goals and contributes to
the business profession by raising the competency levels of the organisation.

Career mobility allows staff to respond to scientific, technological, social, political
Career mobility may be defined as the movement of staff to more advanced
levels, to different areas of the business practice or to positions in which
different functions predominate, including entrepreneurship. (E.g. advanced
practice, consultant etc.).
23
LESSON

1.1
and economic changes by modifying or expanding the roles, composition and
supply of personnel to meet identified needs.

Assessment centres evaluate how well applicants or current employees might
perform in managerial or higher level positions. These centres (the term refers to a
process, not a place) are very expensive, but they appear to be valid predictor of
managerial job performance.

Impatience and frustration felt by employees when advancement opportunities are
limited can be minimised through career counselling sessions by career
counsellors. Career counsellors should explain to employees that promotions are
not the automatic outcomes of career development programmes.

In this lesson we have discussed the importance of career development. We will
now be discussing methods to gather information for career development.

24

STUDY AND RESEARCH FOR THIS LESSON:

REFER TO THE FOLLOWING IN YOUR PRESCRIBED TEXT BOOK:

Read Chapter 13 Managing Employees Careers pages 397-415.
Read Chapter 7 Workforce Planning pages 223-248.
Study 13.2 Career Concepts page 398.
Study 13.3 Career Choice page 399.
Study 13.4 Career Management Steps page 403.
Study 13.5.1 Career Anchors pages 403-406.
Study 13.5.5 Career movements pages 409-412.
Study 13.6. Career Development support methods pages 413-415.
Read Chapter 15.3 A Model for systematic Training pages 454 - 473.
Read the stages of development in career choice 13.3. Career choice:
Read 13.3.1 Supers theory pages 399-400.
Read 13.3.2 Hollands theory pages 400-401.
Read 13.6. Career development support methods page 413-415:
Study 13.6.1 Career planning workshops page 414.
Study 13.6.2 Career discussion page 414.
Study 13.6.3 Career centres page 414.
Study 13.6.4 Career planning workbooks page 414.
Study 13.6.5 Mentoring page 414.
Study 15.2.3 Importance of HRD page 453.
Read Chapter 15.2 Human Resource Development (HRD) Concepts and
Importance page 451-454 of the HRM text book.
Study 15.2.1 What is HRD? page 451.
Study 15.2.2 Employee training, education, development and
OBETClarifying Concepts page 452.

ONLY FOR LEARNERS WITH THE 3RD EDITION TEXT BOOK
25
LESSON

1.1


Read Chapter 12 Managing and developing employees careers pages
396-423.
Read Chapter 6 Workforce Planning pages 227-276.
Study 12.3 Some career related concepts pages 398-399.
Study 12.4 Career Choice pages 399-403.
Study 12.5 Two models of career management pages 404-407.
Study 12.6.1 Career Anchors pages 407-410.
Study 12.6.5 Career movements pages 413-416.
Study 12.7. Career Development support methods pages 417-422.
Read Chapter 14.3 A Model for systematic Training pages 449 - 468.
Read the stages of development in career choice 12.4. Career choice:
Read 12.4.1 Supers theory pages 399-400.
Read 12.4.2 Hollands theory pages 401-403.
Read 12.7. Career development support methods pages 417-422:
Study 12.7.1 Career planning workshops page 419.
Study 12.7.2 Career discussion page 419.
Study 12.7.3 Providing career related education and
information, and assistance with formal education page 419-420.
Study 12.7.4 Mentoring page 420-422.

Study 14.2.3 Importance of HRD pages 447-448.
Read Chapter 14.2 Human Resource Development (HRD) Concepts and
Importance pages 446-449.
Study 14.2.1 What is HRD? page 446.
Study 14.2.2 Employee training, education, development and
OBETClarifying Concepts pages 446-447.
Study Figure 14.1 General model for training page 449.
Study 8.4.3. Employment tests page 285-287.
Study the definition of Training gap page 450.

ONLY FOR LEARNERS WITH THE 4TH EDITIONS TEXT BOOK
26


1.2.1. Formulate career goals based on individual career profiles clearly specifying
actions, accountability, time frames. Ensure compliance with organisational and
legislative requirements.
1.2.2. Identify career advancement strategies to facilitate attainment of career goals.
1.2.3. Link individual development plans applicable in performance management to
career goals.
1.2.4. Document career planning discussions for reference purposes.
1.2.5. Conduct a career planning discussion that is constructive, participative, tactful,
honest and respectful.
1.2.6. Produce a career plan and make available to relevant parties for career
management purposes in line with organisational objectives and legislative
requirements.


F FACILITATE ACILITATE AND AND MANAGE MANAGE
THE THE CAREER CAREER PLANNING PLANNING PROCESS PROCESS. .
Career planning is structured exercises undertaken to identify one's
objectives, marketable skills, strengths, and weaknesses, etc., as a part of
one's career management.
Career orientation is the pattern of job related preferences that remains
fairly stable over a person's work life.
Career stages are the identifiable periods in one's work life which are
distinguished by one's changing activities, concerns, motives, and needs.
Career skills are the sum total of one's marketable or occupational
abilities, experience, and knowledge.
Career goal can be summarised in the phrase "dream with a deadline."
A goal is an observable and measurable end result having one or more
objectives to be achieved within a more or less fixed timeframe.
In comparison, a 'purpose' is an intention (internal motivational state) or
mission. The question, "Has the goal been achieved?" can always be
answered with either a "Yes" or "No." A purpose, however, is not 'achieved'
but instead is pursued everyday.
27
LESSON

FACILITATION OF THE CAREER MANAGEMENT PROCESS

STEP 1: MATCH THE INDIVIDUALS GOALS WITH THE GOALS OF THE ORGANISATION

STEP 2: GET THE DIRECT MANAGER OR SUPERVISOR INVOLVED IN THE CAREER
MANAGEMENT PROCESS

STEP 3: LINK CAREER DEVELOPMENT WITH THE TRENDS OF THE EXTERNAL
ENVIRONMENT

STEP 4: PROVIDE REGULAR COMMUNICATION BETWEEN PARTICIPANTS IN THE CAREER
MANAGEMENT PROCESS (INDIVIDUAL, HR MANAGER AND TOP MANAGEMENT)

STEP 5: MONITOR THE INDIVIDUALS PROGRESS

STEP1:MATCH THE INDIVIDUALS GOALS WITH THE GOALS OF THE ORGANISATION
The first phase of the career management process is to establish the candidates:
personal interests;
aims;
skills;
abilities;

Employees should find out as much as possible about themselves regarding:
ambitions;
needs;
values;
strengths;
limitations.

Individual personal profile:
The individual is responsible to develop an individual profile based on the
information gathered above. The individual could complete a psychometric test to
determine which career he/she is best suited for.

The second phase of the assessment process is the collection of information
regarding existing and future opportunities in the company. This is referred to as
manpower planning. The organisations strategic plan should be viewed to
determine what positions are available and if there are suitable employees
available to fill these positions, refer to the conducted job analysis. The individual
should then discuss his/her proposed career choice with the relevant manager to
obtain feedback regarding the nature of the job and the employees abilities and
motivation to do the job.

The final phase in the individual planning process is the development of a strategy
to achieve career goals. The information gathered about the organisations needs
and the individuals capabilities and motivation should be used to develop the
career plan. The plan should specify the training requirements and deadlines for
each step indicated in the career plan. Formal long term educational strategies
may include completing a degree in a specific field.

1.2
28

Short term education strategies may include participating in short courses, or one
year Certificate qualifications and seminars. Companies often reimburse
employees for tuition and other training expenses, particularly if the employees
training is work related. Individuals need to commit to life long learning to keep
their skills relevant, whether by additional schooling or taking on new assignments.

Personality testing is prohibited in terms of the Employment Equity Act unless the
test being used:
has been scientifically shown to be valid and reliable;
can be applied fairly to all employees and is not bias against any particular
employee group.

CAREER PLANNING DISCUSSIONS ARE DOCUMENTED FOR REFERENCE PURPOSES.
THESE DISCUSSIONS SHOULD BE:
constructive;
participative;
tactful;
honest;
respectful.

The career plan is produced and made available to relevant parties for career
management purposes in line with organisational objectives and legislative
requirements.
Parties include but are not limited to:
employees;
team;
supervisor;
manager;
shop steward;
human Resource department.

Self assessment is the process of gathering information about yourself in order to
make an informed career decision. It is the first step of the career planning process
and is often conducted with the help of a career development professional. Career
planning is a lifelong process, which includes choosing an occupation, getting a
job, growing in your job, possibly changing careers, and eventually retiring.

ANATOMY OF SELF ASSESSMENT: WHAT SHOULD SELF ASSESSMENT EVALUATE?
Self assessment should include a look at your values, interests, personality, and
skills. Here is an overview of the tools you can use to accomplish this.

Value inventories measure how important different values are to a person.
Examples of these values, which play an important role in one's job satisfaction,
include autonomy, prestige, security, interpersonal relations, helping others,
flexible work schedule, outdoor work, leisure time, and high salary.

Interest inventories evaluates peoples likes and dislikes regarding various
activities. The premise of this self assessment tool is that people who share similar
interests will also enjoy the same type of work. Examples of interests are reading,
running, playing golf, and knitting.

29
LESSON

Personality inventories looks at peoples individual traits, motivational drives,
needs, and attitudes. The most frequently used personality inventory is the Myers-
Briggs Type Indicator (MBTI).

In addition to determining what people are good at, a skills assessment also
assesses what people enjoy doing. The skills people use in their career should
combine both characteristics. The results of the skills assessment can be used to
make some changes by acquiring the skills needed for a particular career.

GATHER INFORMATION FOR INDIVIDUAL CAREER PLANNING

Gather information in consultation with the candidate on the following, his/her:
interests;
values;
roles;
skills and aptitudes;
preferred environments;
developmental needs;
realities;
options;
explore the occupations in which the candidate is interested;
research the industries in which the candidate would like to work;
research the labour market;

Although this process is primarily designed for those individuals who are not sure
of what they want to do, or are considering a career change, it will also be valuable
to people who already know which career to pursue. This procedure will help them
know themselves and in the process increase self-confidence.
By completing the exercises in Looking Inward, they will become more aware of
their skills, abilities, and interests.

As you go through the career planning process remind the candidate of the
following:
The candidate needs to be true to him/herself throughout the entire process. It is
very easy to respond to questions portraying him-/herself the way they think they
ought to be, rather than answering the questions according to the way they
currently are. Remind the candidate that they are doing this so that they can find
out more about themselves. The more honest they are with themselves, the
greater the chance that the results you get from this process will be reliable and
useful to the both of you. Inform the candidate that there are no wrong answers.
The questionnaires that they will fill out are not tests, they are merely personal
inventories.

Many of the questions in each of the inventories are difficult and require a great
deal of thought and reflection. They should take their time and think carefully
before answering the questions. The results should be used as a guide, and not as
the absolute truth. Think about what the results are saying about the candidate in
order to determine how true they may be.

Try to get as much information about the candidate as possible by utilising a
combination of tools.

1.2
30

LOOKING INWARD: POSSIBLE QUESTIONS TO ASK THE CANDIDATE:
1. Interests/Preferences:
What are your likes and dislikes?
What do you enjoy doing?
What can you see yourself doing?
What types of environments do you prefer to work in?
In which geographic locations do you wish to live and work?
2. Personality type:
What traits do you possess?
How would you describe yourself?
What are your moods, ideas, and views?
3. Personal strengths:
What are your abilities and strengths?
What are your weaknesses?
What skills have you developed?
What knowledge have you acquired?
4. Accomplishments:
What achievements are you most proud of? Why?
What do these accomplishments reveal about you?
5. Values:
What are your strongest values?
What will lead to personal job satisfaction for you?
What factors in your previous work/volunteer experiences did you like the most?
What factors did you like the least?
6. Future Outlook:
Where do you see yourself in five years? In 10 years time? In 20 years time?
From where you are right now, are these future outlooks realistic?

ANALYSE INFORMATION FOR CAREER PLANNING

CAREER EXPLORATION
Now that the skills, interests, and past experiences have been assessed, it is time
to find out more about the careers that match the personal profile. Carefully
analyse the summary that you created in Looking inward to determine what types
of work the candidate would both enjoy doing and have an aptitude for. List at
least three broad fields in which the candidate wish to work in, and find out more
about careers in these fields. Once you have determined broad areas of interest,
take a look at specific occupations and what they involve.

WHAT DOES THIS INFORMATION CONSISTS OF?
1. Day to day activities
2. Duties and responsibilities
3. Variety of tasks and assignments
4. Skills, knowledge, and training required
5. Working conditions (e.g. number of hours, level of social interaction, physical
demands, type of work space, degree of stress, etc.)
6. Starting salary and frequency and probability of wage increases
7. Advancement opportunities
8. Organisations that employ people in this field
9. Future job outlook (i.e. Is there a demand for this type of work?)

31
LESSON

1.2
10. Related occupations
The next thing that you need to do is develop an action plan based on the
candidates primary career objective. To do so, you need to determine what is
needed in order to achieve the desired goals. This may include:
On-the-job-Training
Further Education and Training Qualification
Higher Education and Training Qualification
A Degree
A specialised industry training course
Job related work experience
A Learnership

GET MORE SPECIFIC INFORMATION AFTER YOU HAVE NARROWED DOWN THE OPTIONS
BY EXPLORING:
Part time work
Internships
Volunteer opportunities
Written materials
Informational interviews
Match

AFTER COMPLETION OF THE ABOVE PROCESS, YOU WILL BE ABLE TO IDENTIFY:
Possible occupations
Evaluate these occupations
Explore alternatives
Choose both short- and long term options

THE FOLLOWING STEPS CAN BE TAKEN IN ORDER TO REACH THE DESIRED GOALS:

Investigate sources of additional training and education; (if needed)
Develop a job search strategy;
Write a resume.

STEP2:GET THE DIRECT MANAGER OR SUPERVISOR INVOLVED IN THE CAREER MANAGEMENT
PROCESS

To be effective in individual career planning, career management efforts must
strike a balance between the HRs needs, organisational needs and employees
career goals. With the aid of career counsellors, employees can realistically
appraise career goals and the organisations predicted HR needs. Managers
should be training a replacement, referred to as succession planning.

STEP 3: LINK CAREER DEVELOPMENT WITH THE TRENDS OF THE EXTERNAL ENVIRONMENT

Technological developments continue to make some positions obsolete. This
means that some jobs may no longer be required as they can be replaced by a
computer or technology. It is important that the employee adjust their career path
to stay current in their skills and knowledge and acquires training on scare skills
needed in their industry.

32


STEP 4: PROVIDE REGULAR COMMUNICATION BETWEEN PARTICIPANTS IN THE CAREER
MANAGEMENT PROCESS (INDIVIDUAL, HR MANAGER AND TOP MANAGEMENT)

Participants in the career management process should have regular career
discussion meetings to communicate and monitor progress on career
development. The monitoring process should inform the HR manager if the
employee needs additional assistance with training or perhaps if the employee is
showing steady progress he/she may be transferred to another department where
the employee can apply the acquired new skill and knowledge.

STEP 5: MONITOR THE INDIVIDUALS PROGRESS
The following methods can be used to monitor the individual's progress:
performance appraisals;
workshops;
career counselling;
support groups;
management by objectives (MBO).
Example: Career planning template
Data gathered Company Candidate
Holistic
Information
Gather information about the
companys vision and mission.
The mission statement describes
the organisations purpose in terms
of what the organisation will do over
the near term. E.g Sanbank will
continue to develop a successful
and innovative financial institution
by providing our customers with
high quality of financial- and related
services whilst promoting
employment equity.
Gather information about the candidates
abilities, values, technical skills,
competencies and career anchors.
Needs List the Human Resource needs of
the company taking into account the
employment equity plan.
Are there any targets that the HR
department needs to reach
before a certain time for which
occupational levels, categories
and groups?
List the career developmental needs of the
candidate such as:
training needs;
financial needs;
job security;
job motivation

Goals The organisation has to comply with
legislative requirements such as the
Employment Equity Act.
Name the goals of the company
such as:
To comply with the EE act;
To reach the affirmative action
targets etc.
Career goals are formulated based on
individual career profiles. Specify actions,
accountability and time frames.
Name the goals and aspirations of the
candidate such as:
to become an HR Practitioner within
three years (goal) by completing the
Human Resource Diploma (action) within
the next two years (time frame).
33
LESSON

1.2
Example: Career planning template continues...
Strategies and action
plans
Strategy means the way in
which organisations meet, or
seek to meet their objectives.
How can the company reach
these goals through its Human
Resources?
by conducting training to fill
the skills gaps etc.
How can the candidate reach his/her
goals through the company? E.g.
workshops;
bursaries;
mentoring/ coaching;
learnerships;
job related work experience;
completing a full qualification
(HET), with which institution and by
when.
Implementation List the steps that the
organisation should take to
assist the candidate to
implement the career plan. E.g.
Regular career development
discussion meetings etc.
List the steps that the candidate
should take to implement career plan
successfully such as:
participate in meaningful training
etc.
Monitoring and
feedback
Management should be involved
in the monitoring process to
ensure that the candidate is
making progress toward the
career plan.
The candidate should be
provided with progress reports
(feedback) regarding the
candidates strengths and
weaknesses.
Various methods can be used
such as:
workshops;
career counselling;
support groups;
management by objectives
(MBO).
Performance appraisals assess the
candidates progress in the job and the
individuals strengths and
weaknesses. Periodic reviews of
progress is not a performance
appraisal but an appraisal of the
individual's progress in his/her career
plan. Career counselling is an
important aspect of monitoring as it
ensures that the candidate receives
advice and support from managers.
The management by objectives
method assists the manager and
employee to decide on mutual goals
and objectives to be accomplished by
a certain deadline.
34

N NOTES OTES: :

35
LESSON


1.3.1 Evaluate career progress against specific actions and timeframes indicated in
career plans.
1.3.2. Hold a career guidance discussion to affirm progress, revise or identify new career
goals and to suggest corrective action.
1.3.3. Hold a career guidance discussion that is constructive and participative with due
consideration to sensitivity, honesty and respect.
1.3.4. Document a career guidance discussion for reference purposes.


MONITOR INDIVIDUAL CAREER PROGRESS.
Manpower planning: the organisations strategic planning and manpower
planning indicates what positions will become available and if suitable
personnel is available to fill these positions.
Value inventories measure how important different values are to a person.
Interest inventories evaluates peoples likes and dislikes regarding various
activities.
Personality inventories looks at peoples individual traits, motivational
drives, needs, and attitudes. The most frequently used personality inventory
is the Myers-Briggs Type Indicator (MBTI).
Personal profile is developed for each employee which recognises the
individuals abilities, strengths, weaknesses and work values. This profile
will also determine if the employee will suit a leadership, supervisor or
service position etc.
1.3
36

We will be discussing performance appraisals and Management by Objectives
(MBO) in the next lesson.

In order for us to conduct a meaningful career guidance discussion we will have to
draw up a list of possible questions to ask the candidate during our discussions.

Example: Career plan template continues...
Monitoring and
feedback
Management should be
involved in the monitoring
process to ensure that the
candidate is making progress
toward the career plan.
The candidate should be
provided with progress
reports (feedback) regarding
the candidates strengths and
weaknesses.
Various methods can be used
such as:
workshops;
career counselling;
support groups;
management by objectives
(MBO).
Performance appraisals assess the
candidates progress in the job and
the individuals strengths and
weaknesses. Periodic reviews of
progress is not a performance
appraisal but an appraisal of the
individual's progress in his/her
career plan. Career counselling is
an important aspect of monitoring
as it ensures that the candidate
receives advice and support from
managers. The management by
objectives method assists the
manager and employee to decide
on mutual goals and objectives to
be accomplished by a certain
deadline.
37
LESSON

1.3
N NOTES OTES: :


38
Monitor team members
and measure
effectiveness of
performance
Formulate performance standards for team members in a unit.

Establish systems for monitoring performance.

Prepare for a performance review of a team member.

Conduct performance review interview.
4 40
39

2.1.1 Formulate performance standards to be achieved by team members in relation to the
unit's goals, objectives and deliverables.
2.1.2 Formulate performance standards that are clear and concise and specify the activities to
be performed and the standards to which they are to be performed.
2.1.3 Incorporate feedback from team members into the performance standards to promote the
buy-in of team members in a unit.
2.1.4 Record and document performance standards according to the entity's policies and
procedures.
A performance management system must be planned. It must be reliable and relevant to
the specific business organisation, and must be accepted as legitimate by employees.


FORMULATE PERFORMANCE STANDARDS FOR
TEAM MEMBERS IN A UNIT.
Performance appraisal may be defined as a formal and systematic
process by means of which the job relevant strength and weakness of
employees are:
identified;
observed;
measured;
recorded;
developed.
Performance management is a process in which management:
plans - decides on the standard and timing of the outputs
organises - the availability of resources
leads - observes performance, evaluates performance, recommends
improvements and provides support
controls the performance of team members - evaluates if the
performance results (outcomes) comply with the set standards.
Performance standard is a measuring tool for evaluating performance
usually referring to a minimum acceptable amount or quality of work.
Goal is what an employer is trying to accomplish on the job. It is the object
or aim of the action. Goals, objectives and targets have similar meanings.
Objective is the ultimate aim of an action.
Key result areas are important areas of activity in which achievement
determines or indicates success.
Accountabilities define the key result areas of the job. The list of
accountabilities should cover all the aspects of the job which together
contribute to achieving the overall purpose. Similar words that can be used
with the same meaning are main tasks and main duties.
40

By referring to the definitions of performance management lets use a practical
example to demonstrate how performance management works in practice:

The Academic Head of the College would apply the principles of performance
management as follows to the assessment team of the college:

Plan: decide how many assignments should be assessed per week, per month
and per assessor.
Organise: Ensure that the assessor have the correct assessor guides for each
qualification and memorandums for each formative and summative assessment.
Ensure that they receive the assignments on time from the data capturing
department.
Lead: Observe that all the assessors are following the principles of assessments.
Ensure that they are trained in assessment and moderation. Provide them with
opportunities to upgrade their skills, knowledge and abilities.
Control: Keep record of how many assessments are assessed per week. If the
desired amounts are not reached, find out the reasons for the delay and take
corrective action. Point out positive and negative deviations from the planned
outputs.

THE MAIN ELEMENTS OF PERFORMANCE MANAGEMENT ARE:
clarifying roles and objectives;
monitoring;
supporting;
recognising;
rewarding.
CHAPTER 2: MONITOR TEAM MEMBERS AND PERFORMANCE MEASUREMENT
Performance appraisal may be defined as a formal and systematic process by
means of which the job relevant strengths and weaknesses of employees are:
identified;
observed;
measured;
recorded;
Developed.
Performance management is a process in which management:
plans - decides on the standard and timing of the outputs
organises - the availability of resources
leads - observes performance, evaluates performance, recommends im-
provements and provides support
controls the performance of team members - evaluates if the performance
results (outcomes) comply with the set standards.
Definition of Performance management by Armstrong and Baron (2004):
A strategic and integrated approach to increasing the effectiveness of
organisations by improving the performance of the people who work in them and
by developing the capabilities of individual contributors.
41
LESSON

SPECIFIC REQUIREMENTS FOR AN APPRAISAL SYSTEM AS A CRITERION FOR JUDGING
THE WORK PERFORMANCE OF INDIVIDUALS IS:
relevance;
reliability;
discrimination or sensitivity;
freedom from contamination;
practicality;
acceptability;
legal compliance;

STEPS IN THE PERFORMANCE MANAGEMENT PROCESS:
1st. Planning the strategic business objectives
2nd. Meeting to agree on personal objectives
3rd. Evaluating performance by conducting a performance appraisal (control aspect
discussed above)
4th. Meeting to review performance.

IN ORDER TO MEASURE EFFECTIVENESS OF PERFORMANCE WE MUST ENSURE THAT
OUR PERFORMANCE MANAGEMENT SYSTEM ADDRESSES THE FOLLOWING ASPECTS:

We have now established that performance evaluation is the control function of
performance management. The process determines how well an employee is
performing his/her duties and tasks, but can also be used to:
support decisions;
manage continuous improvement;
motivate employees;
record development;
2.1
Data gathered Department Team
Business role: Gather information about the
departments vision and mission.
The description should reflect the
business objectives.
Gather information about the teams
vision and mission.
Goals and
objectives:
Formulate the goals of the
department.
Goals and objectives should be
specific.
Define the goals and objectives
in terms of measureable
results.
Individual and organisational
goals should be linked to each
other.
Formulate the goals of the teams.
Two types of goals:
Work objectives - this relates to the
main task areas of the job and results
expected
Developmental objectives - this
relates to personal learning objectives
for improving skills and job
performance. Include the short- and
medium term training plan.
Performance
standards and
development:
Formulate the performance
standards of the department.
Targets are set by joint
agreement.
Define what skills, knowledge
and experience are needed in
the department and the training
requirements of the
department.
Formulate the performance standards
of the team.
Define what skills, knowledge and
experience are needed and the
training requirements of the team
members.
42

improve the employees performance;
make salary adjustments;
promote employees;
transfer employees to more suitable departments;
establish the training needs of the employees;
establish external problems affecting work performance such as personal,
financial or family problems.

The theoretical foundations of the performance management may be
operationalised within an integrated cycle of separate but related managerial
processes as demonstrated in figure 1: An integrated performance management
cycle.

Figure 1: An integrated performance management cycle.
Source: adapted from Fombrun, Devanna & Tichy (1988:252) in The strategic Human Resource Management
Sourcebook, eds. LS Baird, CE Scneier & RM Beatty, Amherst, Mass:HRD press.

Performance planning
Establishing the units mission
defining roles and duties
establishing goals and performance standards
Performance management
Ongoing process of:
maintaining progress
providing feedback
counseling
HR department application (system linkages)
Reward processes
Training and development
Succession planning
Disciplinary procedures
Reviewing and maintaining appraisal system
and process
Performance appraisal
Appraising performance outputs against the
performance expectations
43
LESSON

FORMULATING PERFORMANCE STANDARDS
Since the performance of every employee contributes to achieving the business's
strategic goals, it makes sense that every employee should be managed.

The purpose of formulating performance standards are to establish the outcome in
other words what is expected from an individual performing a particular role.

We therefore do not look at the underlying abilities or traits of the individual, but at
the expectations of meeting the required standards. A performance standard is
expressed in two parts:
1. An element of competence: something that the individual should be able to do.
Competence is the skills, knowledge and attitude (behavioural skills) that can be
demonstrated to differentiate between superior and average performers, or
between effective and ineffective performers.
2. Its associated performance criteria: this describes the standard of performance
required for successful achievement of the element.
When we formulate performance standards we have to establish the
accountabilities and goals, but what does this refer to?

THE PROCESS OF PERFORMANCE MANAGEMENT ENTAILS THREE ELEMENTS:

1. Defining performance by setting clear goals, deciding how to measure goal
accomplishment and providing regular progress assessments. Performance
appraisal is a fundamental part of this element.
2. Facilitating performance by identifying and eliminating barriers to good
performance and by providing resources to accomplish the goals.
3. Encouraging performance by providing sufficient rewards and recognition of
value in a timely and fair manner.

Accountabilities describe the main purpose for which each job exists. These do
not change unless the job changes and there are normally many accountabilities
per job, covering all the aspects of the job.

Goals reflect the immediate priorities of the job. This indicates specific
measureable levels of achievement expected within a given period of time. They
can be related to performance standards and used to influence how the individual
meets the accountabilities.

Functions of goals:
Goals provide a standard of performance by focusing on the activities of the
organisation and the efforts by the individuals.
Goals provide a basis of control related to the organisations activities;
Goals provide guidelines for decision making and justification for actions taken.
2.1
Bernardin et al. 1995: (470-1) defines performance as follows: the record of
outcomes produced on a specific job function or activity during a specific time
period...Performance on the job as a whole can be equal to the sum (or
average) of performance on the critical or essential job functions. The functions
have to do with the work which is performed and not with the characteristics of
the person performing.
44

TYPE OF GOALS:

1. WORK OBJECTIVES - This relates to main tasks areas (accountabilities) of the job
and results expected.

2. DEVELOPMENTAL OBJECTIVES - relates to personal learning objectives or improving
skills and knowledge to enhance job performance.

Types of objectives:

Routine objectives:
The regular duties and responsibilities that form part of the job.
Problem solving objectives:
These objectives relate to specific problem solving strategies used in performing
the job, by identifying solutions to problems.
Innovative objectives:
These strategies refer to individuals ability to create new ideas, services or ways
of doing things
Personal development objectives:
These objectives relate to the individuals ability to develop and grow in a personal
and professional capacity.
Organisational development objectives:
The objectives to grow the organisation as a whole or for a specific department.

Behavioural objectives:

Sensitivity:
The employees actions that indicates a consideration for feeling and needs of
others.
Initiatives:
Actively attempts to influence events to attain goals beyond those called for.
Analysis:
Identifying causes of problems and provides creative solutions for the problems

Remember the golden rule of goal setting:
Specific goals lead to performance achievement! The do your best goals hardly
ever works!

In order for us to formulate performance standards for a team or department, we
have to understand teams and team effectiveness.

45
LESSON

TEAM EFFECTIVENESS COMPRISES FOUR COMPONENTS:
1. Performance:
How well team members produce output measured in terms of:
quality;
quantity;
timeliness;
efficiency;
innovation.
2. Member satisfaction:
How well team members create a positive experience through:
commitment;
trust;
meeting individual needs.
3. Team learning:
How well team members acquire:
New skills
Perspectives and
Behaviours as needed by changing circumstances.
4. Outsider satisfaction:
How well team members meet the needs of outside stakeholders such as:
Suppliers
Customers
THREE TYPES OF APPRAISAL INTERVIEWS:
1. Tell and sell approach
2. Tell and listen approach
3. Problem-solving approach

INTRODUCTION TO TEAM WORK
Individuals seldom work in isolation from others. Teams are a characteristic of all
social institutions and almost everyone in an organisation will be a member of one
or more teams.

Teams are normally formed among people who share a physical environment.
Common goals arise when individuals all have something in common and are
related to the individual needs of the team members. A team is characterised by
its members communicating with one another, over time on a face-to-face basis.
As a result of this communication, each team member influences and is influenced
by all other team members.

REASONS FOR THE FORMATION OF TEAMS
There is no single reason why individuals join teams. Different teams provide
different benefits to their members.

2.1
Gerber, Nel and Van Dyk (1998) states that:
A team consists of a number of individuals who:
have a common goal or objective;
interact with one another to achieve this common goal;
are aware of one another;
agree that they belong to a team.
46

The most popular reasons for joining a team are:

Security: By joining a team, one can reduce the insecurity of standing alone,
feeling stronger, having fewer self-doubts. Individuals get reassurances from
interacting with others and being part of a team.
Status and self-esteem: Membership in one or more teams can help to reassure
us that we are important. Many employees place a high value on meeting their
esteem needs and look to membership in both formal and informal teams for
satisfaction of needs. Membership of the team provides the individual with a
sense of belonging. The team provides a feeling of identity and the chance to
acquire role recognition and status within it.
Power: Teams represent power. What often cannot be achieved individually
becomes possible through team action.
Goal achievement: Certain tasks can be performed only through the combined
efforts of a number of individuals working together. The variety of experience and
expertise among members of a team can ensure goal achievement.
Companionship: Teams provide companionship and a source of mutual
understanding and support from colleagues. This can help to solve work
problems.
Protection: The team may provide protection for its members. Team members
collaborate to protect their interests from outside pressures or threats.

TYPES OF TEAMS
Teams that exist in organisations are typically divided into two basic types:
Formal and Informal teams.

FORMAL TEAMS

A formal team is one that exists within an organisation, which is established by
management to perform tasks that enhance the attainment of organisational
objectives.

Formal teams are commonly divided into two basic types:
i) command teams are formal teams that are outlined on the chain of command on
an organisation chart. Command teams normally handle the more routine
activities of the organisation.
ii) task teams are formal teams of organisation members who interact with one
another to accomplish most non-routine organisational activities.

Examples of formal teams:

A. Committees:
Committees represent a traditionally used formal team. A committee is a team of
individuals that has been charged with performing some type of activity and is
usually classified as a task team.

The major reasons for establishing committees are:
To allow organisation members to exchange ideas.
To generate suggestions and recommendations that can be offered to other
organisational units.
To develop new ideas for solving existing organisational problems.
To assist in the development or organisational policies (Certo, 1983).
47
LESSON

Uses for committees in organisations:
Committees can improve the quality of decision-making As more people
become involved in decision-making, the strengths and weaknesses of that
decision are discussed in more detail and therefore the quality of the decision
tends to increase.
Committees encourage honest opinions. Members feel protected because the
team output of a committee cannot be totally associated with any one member of
the team.
Committees tend to increase organisation members participation in decision-
making and thereby enhance support of committee decisions.
Committees ensure the representation of important teams in the decision-making
process. (Certo, 1983).

WHAT MAKES COMMITTEES SUCCESSFUL
The committees goals should be clearly defined, preferably in writing.
The committees authority should be specified.
The optimum size of the committee should be determined. The ideal number of
committee members for many tasks seems to range from five to ten.
A chairperson should be selected on the basis of ability to run an efficient
meeting.
Appointing a permanent secretary to handle communications.
The agenda and all supporting material for the meeting should be distributed
before the meeting. This will ensure that members would be ready with informed
contribution.
Meetings should be started on time, and the time at which they will end should be
announced at the outset. (Certo, 1983).

B. Work teams:
Work teams are formal teams that have recently begun to gain popular
acceptance and support in organisations. Work teams are another example of
task teams used in organisations. Work teams are a recently developed
management tool, which are generally established to achieve greater
organisational flexibility or to cope with rapid growth.

INFORMAL TEAMS

Informal teams are those that develop naturally as people interact. Informal
teams are not highly structured in terms of procedure and are not formally
recognised by management.

Informal teams can be divided into two basic types:
1. Interest teams are informal teams that gain and maintain membership primarily
because of a special concern each member possesses about a specific issue.
2. Friendship teams are informal teams that forms in organisations because of the
personal affiliation members have for one another.

One tool managers may use to assist in the development of informal teams is
called quality circles. Quality circles are small teams of factory workers that meet
regularly with management to discuss quality-related problems. Management
would have opportunities to develop relationships with various informal teams.

2.1
48

FACTORS THAT INFLUENCE TEAMGROUP EFFECTIVENESS
Managers should always strive to maximize work team effectiveness.

Personality characteristics of members: Certain personality traits such as
sociability; self-reliance and independence tend to be positively related to team
productivity, morale and cohesiveness. On the other hand, negatively evaluated
characteristics such as dominance and unconventionality tend to be negatively
related to the dependent variables.

Heterogeneity of Members: Most team activities require a variety of skills and
knowledge. Therefore, when a team is heterogeneous in terms of personality,
opinions; abilities, skills and perspectives, there is an increased probability that
the team will possess the needed characteristics to complete its tasks effectively.

Team leadership: One of the most important keys to success is the type of
leadership of a team. The decisive factor is the choice of a leader, which is
spelled out by asking what person will best lead the team towards achieving its
common goal.

Size of work team: As the number of members of a work team increases, forces
are created within that team that can either increase or decrease its effectiveness.
The ideal number depends primarily on the teams purpose. Work team size is an
important determinant of team effectiveness, because it has a considerable
impact on i) leadership ii) team members iii) team processes.

Cohesiveness of work teams: Team cohesiveness is the attraction members
feel for one another in terms of desires to remain a member of the team and resist
leaving it. The greater these desires, the more the cohesiveness within the team.

Team norms: The interaction within the team leads to the development of team
norms. A norm can be defined as a generally accepted standard of behaviour that
each member of the team is supposed to maintain. Most team norms relate to
one or more of the following categories: organisational pride; performance;
profitability; teamwork; training; planning; customer relations and honesty or
security.

Status of work team members: Status is the position of a team member in
relation to other team members. Work-related determinants of status include
titles; work schedules and amount of pay team members receive. Non-work
related determinants of status, include education level, race, age and sex. To
maximise the effectiveness of a work team, managers should also consider the
status of members of the informal team or teams that exist within that formal team.

49
LESSON

CHARACTERISTICS OF EFFECTIVE TEAMS
The team knows the reason for its existence and there is a sense of commitment
to the team.
The team has well established and relaxed working relationships among all its
members.
There are guidelines or procedures for decision making
The members of the team believe in shared objectives.
There is communication between the team members.
The members receive and render mutual assistance and there is a feeling of
mutual trust and dependency present.
The team is eager to help each member develop his full potential.
There exist a free flow of information and communication.
The members handle conflict within the team in a constructive manner.
The supportive atmosphere stimulates creativity.
Members are flexible and adaptable in regard to their goals and attitude.
Individual members feel secure to make decisions that seem appropriate to them
because each member understands the goals and philosophy of the operation.

THE SOCIAL STRUCTURE OF TEAMS

The social structure of every team is composed of a team leader; team members
or followers and team norms:

Team leader: The leader of a team may vary as the circumstances of the team
change. A team member can emerge as leader if he, in the opinion of the team, is
best able to satisfy a particular team need at a particular time.
Team members or followers: The success of a team depends on whether the
members are prepared to accept the leaders leadership.
Team norms: A teams norms are an important aspect of its social structure. For
example: If a sheet-metal worker is part of a production team and such a worker
exceeds the teams production norms, he will soon be reprimanded by the team.
The reason is simple: If he continues to exceed the production norms, the other
members of the team will be expected to work to the same production standard.

2.1
50

There are three stages for the leader to follow to enable him to delegate work to
teams:

BRIEF THE TEAM

Specify the essential parameters: Every member needs to know the
boundaries within which he is expected to operate.
Explain the desired outcome: Spell out the teams objectives and explain to
them exactly why these are the objectives.
Get the team to explain its plan of action and check this plan objectively for any
possible flaws.
Check that the team understands exactly what is required.
The leader should sell, but not oversell his own approach. He should make sure
that the members of the team are aware of his approach and preferences as far
as the implementation of the plan is concerned.
Indicate the need for progress reports. The leader has to be kept up to date
with regard to the progress of the project.
Discuss the areas of the task that are sensitive to error or risk. If team
members have been alerted to be on their guard in certain areas, they will be able
to take the necessary precautions.

MONITOR THE PROGRESS OF THE TEAM

Encourage the team to follow their plan of action.
Be alert for signs that indicate that things are starting to go wrong.
Intervene only when the team does not spot errors.
The leader must be ready to help with advice and guidance when needed but
must avoid doing the task himself.
The leader should encourage frequent informal discussion rather than formal
feedback.

EVALUATION AND FEEDBACK

Praise the team and give recognition to the people involved if the task was
successful.
If the result was problematic, evaluate the reason why, and work together with the
team to rectify the problem.

51
LESSON

2.1
N NOTES OTES: :

52



Read Chapter 12 Appraising and managing work performance , pages 371
-394.
Study 12.2 Definition and role of performance appraisal in HRM page 372.
Study 12.2 Definition and role of performance appraisal in HRM page
372.
Study 12.2.1 Purpose of performance appraisal pages 372-373.
Read Exhibit A: Reasons for performance appraisal in SA page 373.
Study 12.2.2 Performance appraisal versus performance management
pages 374-376.
Study the definition of performance management at the bottom of page 375.
Study 12.3 Fundamental requirements for successful performance
appraisal systems pages 376-377.
Study A case at hand Aligning performance management with the
strategic planning cycle page 379.
Read 12.4.3.1 Overcoming rating errors pages 381-382.
Study 12.5 Steps in the development of a successful performance
management and appraisal system pages 382-384.
Study 12.5.1 Planning the system page 382;
Study 12.5.2. Developing the system page 383;
Study 12.5.3. Implementing the system page 384;
Study 12.5.4. Maintaining the system page 384.

Study12.6 Appraisal techniques page 385-392.
Study 12.6.1 Ranking page 385;
Study 12.6.2 Absolute rating techniques page 386-388;
Study 12.6.3 Other appraisal methods page 388-392.
Study 12.6.3.5 Performance and teams page 391-392.
Study 12.7 The appraisal interview page 393.

53
LESSON

2.1


Read Chapter 11 Assessing and enhancing work performance pages 368-
395.
Study 11.2 Definition and role of performance appraisal in HRM pages
369-372.
Study 11.2.1 Purpose of performance appraisal pages 369-371.
Read Exhibit 11.1: Reasons for performance appraisal in SA page 370.
Study 11.2.2 Performance appraisal versus performance management
pages 371-372. Study the definition of performance management.
Study 11.3 Performance appraisal systems: some fundamental
requirements pages 372-374.
Read A policy perspective page 374.
Read 11.4.3.1 Overcoming rating errors pages 378-379.

Study 11.5 Developing a performance management system page 379-
382.
Study 11.5.1 Pre-design considerations pages 379-380;
Study 11.5.2. Designing the system pages 380-381;
Study 11.5.3. Introducing and operationalising the system page 382;
Study 11.5.4. Maintaining the system page 382.

Study 11.6 Techniques for performance appraisal pages 382-393.
Study 11.6.1. Relative rating techniques pages 383-384;
Study 11.6.2 Absolute rating techniques pages 384-386;
Study 11.6.3 Other appraisal methods pages 386-393.
Study 11.6.3.5 Performance management and teams pages 389-390.

Study 11.7 The appraisal interview page 393 of the HRM text book.

ONLY FOR LEARNERS WITH THE 4TH EDITION TEXT BOOK
54

N NOTES OTES: :

55
LESSON

2.2

2.2.1 Identify and review a variety of performance monitoring (management) systems
for possible use in a unit.
2.2.2 Select a performance monitoring system that is in line with the entity's policies and
procedures for performance assessment.
2.2.3 Communicate the performance monitoring system to team members to promote
buy-in.
2.2.4 Set up the system for monitoring performance against standards in accordance
with the entity's policy and procedures.


E ESTABLISH STABLISH SYSTEMS SYSTEMS FOR FOR
MONITORING MONITORING PERFORMANCE PERFORMANCE. .
Appraisal is the impartial analysis and evaluation conducted according to
established criteria to determine the acceptability, merit, or worth of an item
or person.
Performance appraisal is the process by which a manager or consultant
examines and evaluates an employee's work behaviour by comparing it
with preset standards, documents the results of the comparison, and uses
the results to provide feedback to the employee to show where
improvements are needed and why. Performance appraisals are used to
determine who needs what type of training, and who will be promoted or
demoted. (www.businessdictionary.com)
A more simplified definition of performance appraisal: the process of
formally evaluating work performance and providing feedback to the job
holder.
Performance standards describe the conditions for desired work
performance.
Performance standards should provide the following detail:
the worker action or output that will be assessed;
the criteria to be used for the assessment;
how the performance will be measured.
Performance-appraisal techniques include:
trait-orientated methods (e.g. trait scales)
behaviour-orientated methods (e.g. critical incidents, Behavioural
Anchored Rating Scales - BARS)
results-orientated methods (e.g. Management By Objectives -
MBO)
56

DEFINITION OF A PERFORMANCE APPRAISAL
The main purposes of appraisals are firstly to evaluate employees, to let them
know where they stand relative to work-related performance targets and standards
and secondly, to develop employees. This will assist them to identify training
needs and opportunities for personal and career development.

Some other purposes of conducting a performance appraisal are:
to provide a formal, recorded and legal basis to justify employment decisions such
as rewards, recognition and disciplinary measures.
to identify skills gaps;
to provide a basis to distinguish between excellent and unacceptable work
performance;
to assist in goal setting for organisational development;
to assist change management.

The most frequently used criteria are:
Trait based criteria - Focus on the personal characteristics of an employee such
as loyalty, dependability, creativity and communication skills.
Behaviour based criteria - Focus on specific behaviour that leads to job success.
Outcome based criteria - Focus on what was accomplished or produced rather
than how it was accomplished or produced.

LEGAL CONSIDERATIONS
The Labour Relations Act, no. 66 of 1995, stipulates that, when dismissing an
employee on grounds of poor work performance (one of the legal reasons
according to the Act) the input received from the performance appraisal exercise in
the project will be vital. This process will have to be legally sound to avoid any
liability.

In view of the Employment Equity Act, staff responsible for performance appraisals
should not discriminate on the grounds listed in Section 6(1) of the Act and the
assessment criteria used, should be examined to ensure that they are not
unlawfully discriminating.

Depending on the size and nature of the business, the performance appraisal
process can be basic, such as an informal discussion with subordinates and
simply raking employees in order of merit, or it can be part of a sophisticated,
integrated systems, such as the balanced scorecard with a multi-rater 306-degree
assessment.

THE APPRAISAL PROCESS
Performance appraisal should start with a job analysis. The job analysis identifies
the elements of a particular job and as such identifies the particular performance
dimensions associated with that job.

A performance appraisal can be described as a regular and continuous
process of evaluating and judging the behaviour of team members in order to
assess how effectively they are performing in the project. Various types of
performance criteria are used.
57
LESSON

2.2
The second phase is the crucial link between the job analysis and performance
appraisal; the process of establishing the necessary performance standards. This
process translates the job requirements as acquired in the job analysis, into levels
of acceptable and unacceptable performance.

The appraisal process is subsequently concerned with gathering job performance
information that is acquired through observing and evaluating the adequacy of
individual performance through the use of judgement. A variety of appraisal
techniques are available to measure employee performance.

STEPS IN DEVELOPING A PERFORMANCE APPRAISAL SYSTEM

1. Determine performance requirements. - Administrators must first determine
what skills, outputs and accomplishments will be evaluated during each appraisal.
2. Choose an appropriate appraisal method. - Several methods may be used to
appraise performance; no one method is suitable for all organisations.
3. Train supervisors. - A critical step in the performance appraisal process is
training supervisors (or other raters) to prepare fair and accurate appraisals and
effectively communicate the evaluation process to the employee.
4. Discuss methods with employees. - Prior to the appraisal interview, supervisors
should discuss with employees the method that will be used. This discussion
should specify which areas of performance are evaluated, how often, how the
evaluation takes place and its significance to the employee.
5. Appraise according to job standards. - The performance appraisal should
evaluate the employees work according to predetermined work requirements.
Comparison with specific requirements indicates what the employee has or has
not done well. The supervisors opinion about the employee should not affect the
appraisal.
6. Discuss appraisal with employees. - Make sure that the supervisors discuss the
appraisal with their employees, allowing employees to discuss areas of agreement
and disagreement. The supervisor should emphasise positive work performance,
i.e. those areas in which the employee has met or exceeded expectations, as well
as areas that need improvement.
7. Determine future performance goals. - Setting goals for the employees future
appraisal period is important because it gives the employee direction for continued
or improved performance.

58

GENERAL CONSIDERATIONS WHEN APPRAISING PROJECT TEAMS:

Written appraisals should be conducted regularly for all team members - it
should not be limited to lower-level employees only.
Appraisers should be trained thoroughly in applying the correct appraisal
procedures. They should apply consistent, explicit and objective job-related
standards when preparing performance appraisals.
Work performance, not the individual, should be judged.
An audit system should be established to guard against leniency and other
errors to ensure that appraisals are unbiased (e.g. before the performance
appraisal interview is held with the employee, the performance appraisal should be
reviewed and approved by another manager or reviewer).
Problem areas should be detailed and documented. If problems are not
specifically identified, it will be difficult for the employee to know exactly what
behaviour to improve upon.
When problems have been identified in assessing sub-standard performance,
specific goals and timetables should be established for improvement.
Employees should be given a clear opportunity to respond to negative
appraisals. If the employee with sub-standard performance gives his version of
the facts, it may guard against future claims and will assist in gaining the
employees involvement in the performance appraisal process. An opportunity to
appeal against ratings within the organisation will also ensure a fair system.
Circulation of appraisals should be restricted to the relevant management
staff only. Unrestricted access to a performance appraisal, including negative
ratings, may expose the employer to a defamation suit.

THE TEAM LEADER/SUPERVISOR SHOULD
AVOID THE FOLLOWING COMMON ERRORS:

Supervisory bias:
The most common error that exists in any appraisal method is
conscious or unconscious supervisory bias.
Halo effect:
Allowing one particular aspect of an employees performance to
influence the evaluation of other aspects of performance, a halo effect
has occurred.
Central tendency:
Evaluating everyone as average will result in a central tendency.
Leniency:
Inexperienced or weak supervisors may decide that the easiest way to
appraise performance is simply to give everyone a high evaluation.
59
LESSON

2.2
USING COUNSELLING
For corrective counselling to be effective, a supervisor must be genuinely
interested in assisting an employee to overcome problems and must offer support,
encouragement and assistance. Each counselling session will differ, but there are
a number of steps that are common to every corrective counselling interview:

Step 1: Get the facts before counselling
Step 2: Discuss in private.
Step 3: Put the employee at ease, but get to the point.
Step 4: Describe the problem, using facts
Step 5: Get agreement on the problem.
Step 6: Involve the employee in problem solving
Step 7: Get the employee to sum up the problem and solution.
Step 8: State next goals and end on positive note.

60

Essay appraisal method
Description of this method The evaluator writes an essay regarding the
employees behavioural strengths and
weaknesses.
Advantages Disadvantages
Employees prefer this method as it is more
personal and all aspects of their work can
be explained in detail. This appraisal
methods can provides valuable feedback to
the employee if the report is written well.
Very time consuming.
The success of the report is much
dependent on the writing skills of the rater.
Rating by peers method
Description of this method This method is used by professionals (e.g.
training institutions, lecturers) who are
familiar with the tasks and standards that
are required in their profession.
Colleagues give feedback to each other in a
formal meeting.
Categories for evaluation are determined by
mutual consent.
Very time consuming.
Employees feel less threatened by their
colleagues than by their managers.
Management has no input in the evaluation
process and may feel excluded from the
process.
There are various appraisal techniques and methods, but irrespective of which
format is used, the appraisal system should meet the following basic requirements:
relevance;
sensitivity;
reliability;
acceptability;
practicality.

METHODS OF PERFORMANCE APPRAISALS
The following methods can be used to evaluate performance:
1. essay appraisal;
2. rating by peers
3. critical incidents;
4. 360 degree appraisal.
5. graphic rating scales;
6. management by objectives.
7. self-appraisal
61
LESSON

2.2
Critical incident method
Description of this method This technique requires the supervisor to
record continuously actual job behaviours
that are typical of success or failure as they
occur. The supervisor makes notes of
critical incidents involving the employee.
The incidents include outstanding
performances or extremely unsatisfactory
incident of behaviour or task performances.
The critical incidents are listed per category.
This method focuses on the behaviour
rather than the traits as a basis of appraisal
thus has the potential for meaningful
feedback. Nothing goes unnoticed.
The employee does not have a chance to
explain his/her side of the critical incident.
The recording of incident are time
consuming and can become a burden for
the supervisor. Supervisors may neglect to
complete the incidents as they happen and
later try to recall incidents which may then
become subjective. The employee does not
have an opportunity to immediately respond
to the incidents.
Example: Critical incident method
Category: Outstanding critical incident Extremely unsatisfactory
critical incident
Time management The employee completed the
employment equity plan and
submitted this three months before
the due date.
The department lost a big
contract with a large supplier,
as the employee neglected to
follow up on the due date for
the submission of the tender
documents.
360 Degree method
Description of this method This method derives its name from the fact
that appraisal feedback is provided from all
directions, namely from the direct
supervisor, from colleagues and co-
workers, from sob-ordinates and sometimes
even customers.
Feedback from multiple sources can
reinforce the feedback from the manager or
employer and can capture the complexities
of the individuals performance in his/her
various roles and interactions.
The employee may feel overwhelmed with
to much information and feedback.
62

Graphic rating scales
Description of this method Most popular method and many
variations can be found. The evaluator
ticks the blocks on the appraisal form,
thereby rating the employees
performance.
This method can be quantified by
adding the results to get a total figure.
It may be challenging to distinguish
between an outstanding (5) and good
(4) rating.
Example: Graphic rating scale method
Performance Appraisal document: Management
Performance appraisal for period
From:

To:

Employee number
Job title
Department or section
Rating scale 5 4 3 2 1
A. Management and leadership
1. Provide subordinates with clear directions
2. Identify developmental needs of staff members
3. Recognises achievement of staff members
B. Achievement and action
1. Make rapid and responsible decisions
2. Manage work pressure effectively
3. Use work resource effectively without wastage
C. Creative thinking and problem solving abilities
1. Creative solutions to problems
2. Encourages team work
3. Disciplinary action measures used
D. Interpersonal relationships
1. Conflict management skills
2. Team building initiatives
3. Sensitive towards cultural diversity
E. Self-management
1. Time management
2. Skills development and training initiatives planned
3. Projects delivered on time
63
LESSON

2.2
Management by objectives method
Description of this method Management by objectives is a system of
management that focuses on setting and
integrating individual and organisational
goals, but due to its process can also be
used for evaluation purposes. The
supervisor explains to the subordinates
what the objectives and goals are. The
subordinates then have the opportunity to
propose some objectives and goals too.
The supervisor and subordinates formulate
action plans and discuss the objectives.
The supervisor assists the employees to
reach the set goals. They meet regularly to
discuss the progress and review the extent
to which the objectives have been met.
The subordinates provides input and is
more likely to co-operate.
This is an objective way to determine if the
agreed goals are met.
Regular supervisor-employee interaction.
Mutual goal setting.
Opportunities for participation in teams.
May be time consuming. As a results-based
method of appraisal MBO does not address
the how of the performance. This method
is therefore unable to appraise if
achievements are the outcome of individual
performance of that of external factors.

MANAGEMENT BY OBJECTIVES (MBO)
One of the most important tools for monitoring and managing is the popular
technique for the integration of organisational (and project) and individual goals,
called Management by Objectives (MBO). MBO is based on the belief that the joint
participation of team members and team leaders/project managers in translating
project goals into more specific individual goals has a positive impact on employee
motivation. In other words, the team member will be more motivated to perform
more efficiently in the project if he participates in selecting his own personal goals.

In adopting the principle of management by objectives, the team member will not
only complete his day's work as a paid employee, but also with an important goal
in mind, a goal or objective which, in the long run, will also afford him job
satisfaction.

The individual forms a part of the team and all strive together to reach the team
objectives. MBO deals with the following four important questions:

Where are we going?
What must be done to get there?
How must it be done?
Who must do it, and by when?

64

ADVANTAGES OF IMPLEMENTING MBO

1. Improvement of the managerial function

There is clarity of planning and control; and the team increasingly reaches their
objectives because they have been clearly defined. Every team member knows
what is expected of him and what he must do. There is thus no waste of time in the
organisation.

2. Accurate evaluation of results

Management by Objectives provides an objective instrument of evaluation, by
which actual results can be measured against expected results. Each and every
team member can measure his own performance and results, because the
requirements have been clearly and specifically formulated and are measurable.

3. Increased motivation

A further advantage of goal directed management is increased motivation. Each
team member shares in the formulation of objectives relevant to his own activities,
but also with regard to the objectives for the whole project. This gives him a feeling
of participation and commitment to the project and he feels that he is working more
constructively and not just reporting for another day in the daily grind.

4. Management development

The MBO strategy is also a form of self-discipline. Every team member shares in
the outlining of his duties and tasks for the project. In the process he plans the type
of activities, schedules, and aids that he will need to get the job done. Thus he
gradually becomes acquainted with the essence and problems of management. By
considering the suggestions of all the members of staff, how he acts and performs
in his own field, the date when he will have finished his job, and the standard that
he will reach, every worker becomes psychologically involved in the process of self
-development. The employee thus feels that he is not just another member of staff,
but also part of the total managerial process.

5. Co-ordinated teamwork

MBO offers possibilities for co-ordinated action whereby each member of the team
contributes to its success. It can also be determined which team member is not
pulling his weight and corrective action can be taken. Results obtained in a project
depend on goal directed planning and organisational compliance to a series of
expectations. Results don't fall into one's lap.

65
LESSON

2.2
THE MBO PROCESS

The MBO process has four main elements as can be seen in the above
diagram:

The objective/goal setting. What do we want to achieve?
The planning of action. What is going to be done to get these results?
Self-control. How are we going to determine if we are still on schedule, and
whether we're doing better or worse than we had planned?
Periodic revision. If we were to deviate, what are we going to do to get back to
the results we should have achieved?

IMPLEMENTING MBO
According to Smit and Cronje (2003), having adopted the MBO philosophy, each
team member should have a clear understanding of the hierarchy of objectives and
goals of the team. The team members should also understand what areas
management is focussing on and why.

1. Job output
The goal-setting process starts with a discussion between the team leader and the
team member about the outputs that the latter is responsible for. The key
performance areas as well as the key performance indicators of the team member
should be discussed to ensure that both parties are familiar with the members
expected job output.

2. Performance targets
The team member formulates performance targets in the predetermined area of
his responsibility for a specific period. Each goal should be as quantitative as
possible, specific, concise, and time-related (SSMART). Each goal should be
written down, and should meet the specifications for well-formulated goals.

Goal Setting
Plan for Action
Self-Control
Periodic Revision
1. Long term goals and strategy
2. Development of specific goals for the organisation
3. Departmental goals
4. Individual goals; each employee
5. Formulate plans for actions
6. Implement and take individual remedial action
7. Evaluation of progress in terms of goals
8. Evaluation of progress as a whole;
Reinforce action and motivate by :
a) Training and Development
b) Compensation
c) Career and manpower planning
66

3. Discussion of goals
During this stage the team member meets with his or her supervisor to discuss
potential performance targets. The purpose of this discussion is to arrive at a set of
goals that they have developed jointly and to which both are committed.
Involvement is the key element at this stage. Goals dictated by a superior do not
evoke full commitment from subordinates. By the same token, failure by a superior
to participate fully and actively in this step leads team members to believe that
management places little value on MBO.

Superiors play the critical role of counsellors in the goal-setting discussion. They
should ensure that team members goals are indeed attainable and that these
goals will facilitate goals at the higher levels of the goal hierarchy. The goal-setting
process may, however, take the form of a struggle. The employee may want to set
easy targets to ensure their achievement, while the supervisor may want to set
challenging targets to increase work performance.

The discussion between subordinate and superior should also spell out the
resources that a subordinate needs in order to work effectively towards goal
attainment. A subordinate should know which human resources he or she is
allowed to mobilise (for example, the number of new salespeople), the financial
resources available to him or her (budget), the physical resources allocated to him
or her (office space, computers, vehicles, warehouses, etc), and the information
resources at his or her disposal (reports, surveys, financial statements, and so on).

4. Determination of checkpoints
A subordinate's progress needs to be measured periodically and checkpoints need
to be established for this purpose. If the goals are established for a one-year
period, it may be a good idea for subordinate and superior to meet on a more
regular basis to discuss progress to date. These periodic reviews not only monitor
the subordinate's progress, but also provide an opportunity to adjust goals that
have become unrealistic in the light of changing conditions or uncontrollable
events, such as the loss of productive hours due to a strike or the resignation of a
key person in a project.

5 Evaluation and feedback
At the end of the predetermined performance period, the superior should meet with
the subordinate to review the degree of goal attainment. The meeting should focus
on goal analysis and a discussion of the results actually achieved. The supervisor
should also give feedback to the subordinate on his or her progress.

Each individual in the organisation thus has a plan of action outlining what he must
do to help achieve the total actions for the goals set for the month, the week and
the day. When MBO is properly implemented, the project manager will have almost
nothing to do apart from the controlling of his action programmes. By using MBO a
project manager will delegate far more, and have an action programme for each
day; this program will include every single task scheduled for execution on that
day.
MBO emphasises the importance of finishing off all the day's tasks on the
prescribed day. The next morning the manager will automatically control his plan of
action and determine which tasks were not completed on the previous day. These
tasks are then put on the current program, and given top priority.

67
LESSON

2.2
It is essential to hold a complete overview meeting with the entire project team at
least once a month, and in this meeting make an examination of whether progress
towards the goal is meeting the requirements. In applying this system you should
have in your project a motivated team working together for the success of the
project.

We advise you not to use increases in salary or bonuses or any other bait to
motivate your team towards achievement of their goals. Goals must be reached by
each individual as the prerequisite of being a member of the team. If you have
team members who are unable to participate in this team effort with any
enthusiasm, after you have taken steps to ensure motivation and to involve the
employee in the team effort, you should have no hesitation in taking disciplinary
action against him/her.

The principle of MBO should now be clear, namely that when management is goal
directed and well planned, the project manages itself. There should not be crucial
decisions cropping up from day to day, because the projections and plans should
make provision for almost all events.

The MBO System
Training and Development

Evaluate Performance
Manpower Planning
Periodic
Revision
Goal
Setting
Plan of
Action
Self
Control
68


SETTING GOALS AND OBJECTIVES
Properly specified objectives will display most of the following characteristics:
they are explicit;
they can be measured and controlled;
they are ambitious but achievable;
they are hierarchically related;
they have time limits.

Another way of identifying well-defined objectives is to see if they are SSMART:
Simple do not use complicated words and phrases
Specific clearly identify what will be done
Measurable indicators of progress must be included in the definition
Achievable it must be possible to complete the objective successfully
Realistic no time for daydreaming!
Time limited

The following guidelines can assist the team in specifying the project objectives:
Always start with To, followed by a verb and the related measurable result or
activity. E.g.: To build a store room or To appraise the functioning of supervisors
in the operations department before 31 August.
Use strong, action oriented verbs that describe observable and measurable
behaviour. E.g.: To design an organisational chart for the project team (not: To
attempt to design ). Phrases like to ensure that or to assist participants to
acquire do not express the precise action to be undertaken. The verb selected
must be the most descriptive of the activity to be undertaken.
State only one purpose or aim. Objectives should not contain two or more verbs.
Not: To design and install a management information system
Specify a single end-product or result. Not: To build a dispensary and access
road
Ensure that progress against the objective is measurable. Set an indicator of
progress against each one. Ask the question, How will we know if we have
achieved this objective? E.g.: Objective: To increase sales of new product
should rather read: To increase the sales volume of product A to 200 per month
(or by 20%) in the next 3 months
Read up on industry standards. This will provide a benchmark to check your
indicators and competitiveness against.

69
LESSON

2.2

THE POTENTIAL BENEFITS OF SELF ASSESSMENT:
Enhances self raters sense of dignity and self respect;
Increases employees perceptions of fairness in the process;
Reduces the impact of any individuals biases by providing ratings from more
sources;
Highlights the discrepancies between self and supervisor perceptions of
performance;
minimises the halo effect, self-raters see more differentiation across rated
dimensions than observers;
Helps clarify differences of opinion regarding performance requirements;
Increases acceptance of feedback because it promotes self reflection about
performance;
Increases the commitment to the formulated development plans and goals.

PERFORMANCE AGREEMENT OR PERFORMANCE CONTRACT

The contract is between two parties and consists of two elements:
1. the clarification of performance requirements;
2. the agreement of the corresponding support in terms of resources, training and
direction from the manager.

THE PERFORMANCE REQUIREMENTS IN A PERFORMANCE CONTACT ARE FOR THE
WHOLE JOB AND NOT JUST SELECTED PARTS.
What is agreed often finds expression in some sort of written action plan
referred to as a performance agreement or performance contact. This
contract or agreement should communicates both the what and the how well
of performance (Rummler and Branche, 1995). A performance agreement
defines expectations, the work to be done, the results to be obtained and the
attributes (skills, knowledge and experience) and competencies required to
achieve these results. It also identifies the measures used to monitor, review
and assess performance (Armstrong, 1994:46).
Self appraisal method
Description of this method The employee has an opportunity do reflect
on his/her own work performance.
Using the self evaluation in performance
feedback interviews leads to a more
constructive evaluation process.
The employee is less defensive during the
appraisal process.
The self appraisal methods assists in
identifying personal growth and
development.

Employees often rate themselves too
leniently.
70

EXAMPLE 1: PERFORMANCE AGREEMENT/CONTRACT
Job Title:
Staff members name:
Staff members Surname:
Organisational vision and
strategic objectives:

Departmental vision and
strategic objectives:

Job mission:
Purpose of the job

Performance description:
Outputs, indicators and
activities to be completed in
fulfilling the mission of the
job.

Objectives for current period:
No. Objectives: Standards to meet
expectations of
acceptable performance
Standards to exceed
expectations of
acceptable performance

Competency requirements:
Knowledge:
Skills and attributes:
Possible barriers to
performance:

Resources required to meet
expectations of acceptable
performance:

Date of next review:
Signature of staff member: Date:
Signature of supervisor: Date:
71
LESSON

2.2
EXAMPLE 2: PERFORMANCE APPRAISAL FORM
Job Title:
Related job profile:
Department:
Division:
Key purpose statement:
Performance contract
Rating: 1 most standards met
2 met some standards
3 met all standards
4 exceeded some standards
5- consistently exceeded standards
Key responsibilities: Specific outcomes: Performance criteria: 1 2 3 4 5
Example:
1. Manage people Develop teams and
individuals to
enhance
performance
Identify, review and improve development
activities for teams and individuals.

Encourage and assist individuals to evaluate
their own learning and develop needs.

Develop activities to optimise the use of
available resources

2. Discipline employees Institute disciplinary
action
Issue warnings appropriately and consistently
by making the correct judgements

Short term projects:
Comments by manager
Comments by
employee:

Review sign off:
Date of next review:
Signature of employee: Date:
Signature of supervisor
or Human Resource
Manager:
Date:
72

EXAMPLE 3: PERFORMANCE APPRAISAL FORM
WORK EFFICIENCY ASSESSMENT
___________________________________(Name)
MANAGEMENT ABILITY (MANAGEMENT)
No. Period A B Rating
1 Control of flow of work is 1 2 3 4 5 1 2 3 4 5
2 The standard of subordinates` work 1 2 3 4 5 1 2 3 4 5
3 Ability to determine job priorities is 1 2 3 4 5 1 2 3 4 5
4 Ability to determine objectives/goals 1 2 3 4 5 1 2 3 4 5
5 Upholding of standards 1 2 3 4 5 1 2 3 4 5
6 Handling difficulties/problems 1 2 3 4 5 1 2 3 4 5
7 Decision making skills 1 2 3 4 5 1 2 3 4 5
8 Self-confidence 1 2 3 4 5 1 2 3 4 5
9 Judgement of employees` behaviour 1 2 3 4 5 1 2 3 4 5
10 Handling of emergency assignments 1 2 3 4 5 1 2 3 4 5
WORK PERFORMANCE
1 Willingness to proceed at own initiative 1 2 3 4 5 1 2 3 4 5
2 Compliance with timetables 1 2 3 4 5 1 2 3 4 5
3 Standard of work 1 2 3 4 5 1 2 3 4 5
4 Meeting deadlines 1 2 3 4 5 1 2 3 4 5
5 Contribution to improving work methods 1 2 3 4 5 1 2 3 4 5
6 Perseverance in long difficult tasks 1 2 3 4 5 1 2 3 4 5
7 Ability to cope with multiple assignments 1 2 3 4 5 1 2 3 4 5
8 Eagerness to undertake assignments 1 2 3 4 5 1 2 3 4 5
9 Ability to switch from one task to another 1 2 3 4 5 1 2 3 4 5
10 Knowledge of the details of his present work 1 2 3 4 5 1 2 3 4 5
73
LESSON

2.2
EXAMPLE 3: PERFORMANCE APPRAISAL FORM CONTINUES...
ADAPTABILITY IN THE WORKPLACE
1 Reaction to suggestions and criticism 1 2 3 4 5 1 2 3 4 5
2 Co-operation with others 1 2 3 4 5 1 2 3 4 5
3 Tact and courtesy 1 2 3 4 5 1 2 3 4 5
4 Ability to adapt to new methods/procedures 1 2 3 4 5 1 2 3 4 5
5 Control of temper in normal circumstances 1 2 3 4 5 1 2 3 4 5
6 Maintaining discipline 1 2 3 4 5 1 2 3 4 5
7 Disposition towards the company 1 2 3 4 5 1 2 3 4 5
8 Willingness to share in unpleasant tasks 1 2 3 4 5 1 2 3 4 5
9 Self-control under trying circumstances 1 2 3 4 5 1 2 3 4 5
10 Neatness and general behaviour 1 2 3 4 5 1 2 3 4 5
Total

Percentage

Attention should be given to: Goals Date by:

Name of person/s conducting the assessment:

A__________________ B________________

Signature/s: A __________________ B________________

Date: ____________________ __________________

Discuss areas requiring attention and goals to overcome these obstacles:

By signing this document, I fully agree and duly state that I am submitting to this
appraisal with my full consent and without external pressure of any nature.

Signature of person being assessed: ___________________________

Date: ___________________________
74


2.3.1 Make arrangements for a performance review. Ensure agreement with team
member, including the time, place and nature of the review.
2.3.2 Conduct a preliminary assessment of performance against the agreed standards
using monitoring systems.
2.3.3 Document information gathered during the preliminary assessment to be available
for future reference.
2.3.4 Identify methods for giving constructive feedback, that make provision for reporting
positive and negative findings.
2.3.5 Prepare documents to be used during the review in accordance with the entity's
policies and procedures.

An audit system must be established to guard against leniency (easy-goingness)
and other rater errors to ensure that appraisals are unbiased. Before interviewing
the candidate about the performance appraisal (PA) , the PA should be reviewed
and approved by another manager. The HR department can review ratings by the
supervisor to help identify rater errors such as central tendency, harshness,
leniency and so on.


PREPARE FOR A PERFORMANCE REVIEW
OF A TEAM MEMBER.
Review is the orderly recall of past information in summary form for
its re-examination.
Progress and performance reviews provide a formal opportunity to
discuss overall performance results. Progress review meetings allow
the manager to summarise informal feedback.
Personal management interviews are regular and private meetings
which provide manager an opportunity to council subordinates and to
assist in improving skills and job performance.
75
LESSON

MONITORING WORK ACTIVITIES

The monitoring process includes gathering information about work activities and
checking on the progress and quality of work, amongst other things. Apart from
gathering information which may be used to keep track of progress with goals or
providing feedback, such monitoring may carry an important message to the
employee that management regards his/her activities as important. Such
monitoring activities may include the following:
observation in the workplace
reading progress reports;
holding progress report meetings with an individual or work teams;
surveying clients or customers to assess their satisfaction with the organisations
products and services;
conducting market surveys to assess customer needs and preferences;
holding meetings after a project has been finalised to discuss the strengths and
weaknesses of the project.

Though the very act of monitoring may have a direct impact on employee
performance, it is more usually thought of as being linked with some other
managerial behaviour, such as revising work objectives or providing feedback.

CONDUCTING PERFORMANCE REVIEWS

The starting point of performance reviews will be the performance contract that we
have discussed in the previous lesson. The performance plan comprises a job
mission statement that specify the single main purpose of the job and a
performance description which states the outputs, indicators and activities to be
completed in fulfilling the mission. The review process should also be
communicated in the contract.

A formal review meeting should take place between the employee and employer
on some regular periodic basic, quarterly, annually or bi-annually. Informal reviews
may take place every three to six months. There are some arguments for saying it
should happen as and when required - to coincide with the completion of a task or
when particular problems arise. From this point of view it is sensible for the review
cycle to coincide with the work cycle.

THE PURPOSE OF PERFORMANCE AND PROGRESS REVIEWS

Progress reviews provide a formal opportunity to discuss overall performance
results. Progress review meetings allow the manager to summarise informal
feedback and are vital to managing performance.

The main purposes of a progress review are to:
progress towards goals and objectives established in the performance and
development plans;
review objectives and plans in light of changes in the business environment;
discuss needed changes, revisions and additions to the performance and
development plans;
develop improvement plans.

2.3
76

Regular meetings should assist employees to improve their own skills and job
performance, these meetings should focus on the following elements:
managerial and organisational problems;
information sharing;
interpersonal issues;
barriers to improvement;
training in management skills;
individual needs;
feedback on job performance;
personal concerns and problems.

FEEDBACK

The most important aspect of feedback is that it should be timely, to enable good
performance to be recognised as it occurs. It is found that feedback received on
an informal day-to-day basis has far better results than feedback given during the
annual performance appraisal session in terms of its impact on work performance
and attitude.

THE DIFFERENCE BETWEEN FEEDBACK AND CRITICISM

Criticism has a negative impact on goal achievements as a defensive attitude
gives rise to unsatisfactory work performance (Gerber, Nel & van Dyk, 1998).
Criticism evaluates in terms of good and bad behaviour. Feedback on the other
hand is descriptive, giving employees information that they can use for self-
evaluation.

Effective and positive feedback has the following feature:

FEATURES OF EFFECTIVE AND POSITIVE FEEDBACK
TIMELY Feedback should be given after the behaviour has
taken place.
FOCUSES ON BEHAVIOUR The feedback should concentrate on what the employee
has done correctly or incorrectly and should not be an
attack a personal level.
HONEST To ensure a good trust relationship, feedback should be
honest and praised only where praise is due. If the rater
is cautious to raise any negative aspects the feedback
will not be developmental to the employee.
SPECIFIC The rater should be specific in his/her feedback and use
valid evidence to substantiate arguments e.g. "We
found that the customer satisfaction levels improved by
32% in your department.
FEEDBACK FROM THE
EMPLOYEE
The rater must ensure that the employee interprets the
feedback the same as the reater does.
77
LESSON

2.3
Checklist when conducting a review session
Conduct the session at a pre-arranged time.
Ensure total privacy without any interruptions.
Inform the employee that the interview is about improving performance
and it not a form of disciplinary action.

Always start and end the session by discussing the employees
strengths. Feedback should be provided in the order of positive, negative
and positive.

Allow the employee an opportunity to make his/her own observations
about their performance to ensure a two-way communication process.

EFFECTIVE
FEEDBACK
FOCUSED ON IS
Explains why
behaviour is
effective/ineffective
Provides alternative
positive behaviours
Allow the person to
participate in the
process by
commenting and
elaborating on issues
Quotes specific
examples
Maintains the trust of
those involved.
concise
specific
timely
supportive
relevant
trustworthy
given in moderation
behaviour that can
be changed and will
have the biggest
impact on
performance
improvement
strengths and
developmental needs
of the individual
78

EXAMPLE: PERFORMANCE REVIEW FORM
Initials and surname:
Job Title:
Department:
Division:
Reviewer:
Reviewers supervisor:
Review date:
Last review:
Next review:
Rating:1 exceptional (Exceeds all the requirements)
2 very effective (Some or most of the requirements have been met)
3 effective (The requirements meet the satisfactory level)
4 developing (Some areas of the requirements need improvement)
5 basic (Room for considerable improvement in most areas)
Key result areas
Key performance area Weighting Rated by 1 2 3 4 5
1. Management rating
Individual rating
Individual rating
Individual rating
Day-to-day performance measurement
Key performance area Weighting Rated by 1 2 3 4 5
Individual rating
Individual rating
Individual rating
Overall performance: (select 1-5)
79
LESSON

2.3
EXAMPLE: PERFORMANCE REVIEW FORM CONTINUES...
Reviewee comments
Do you agree with the ratings
of the performance review?

Are there any factors that you
can think of that influences
your work performance?

How can the organisation
assist you to improve your
work performance?

Which performance area do
you think you need to improve
on before the next review?

Can you suggest any short
term training programmes that
will enhance your current work
performance?

Can you suggest any long
term training programmes that
will enhance your future work
performance?

General comments by
reviewee:

Reviewer comments
How can the organisation
assist the reviewee to improve
on the areas identified as
areas of concern?

Does the reviewee require
training on the identified areas
before the next review?

Action plans before the next
review:

Signed and dated by reviewee
Signed and dated by reviewer
(line manager or supervisor)

80


2.4.1 Conduct the review in accordance with the arrangements previously agreed with
the team member.
2.4.2 Provide feedback to the team member that is relevant and fair and communicated
in a constructive and supportive manner.
2.4.3 Record findings on positive and negative aspects of the member's performance
accurately, fairly and honestly for report back and follow-up.
2.4.4 Develop an action plan to address performance gaps and build on positive
performance as agreed upon with the employee.
2.4.5 Document agreed actions and ensure that both parties sign the document.

Performance review interview provide a formal opportunity to
discuss overall performance results. Progress review meetings allow
the manager to summarise informal feedback.


CONDUCT A PERFORMANCE REVIEW INTERVIEW.
81
LESSON

DEALING WITH POOR PERFORMANCE

POSITIVE DEVIATIONS OCCUR WHEN A TEAM MEMBER EXCEEDS THE EXPECTED
OUTPUTS (PERFORMANCE) STANDARDS.

2.4
Consider the following actions when dealing with positive deviations:
Ensure the performance standards are not set to low, as this can lead to
attaining performance standards too easily.

Reward employees for good performance.
Promotion can be considered to a higher position with more complex
tasks and responsibilities.

Consider the following questions when dealing with negative deviations:
Is the causes of poor performance not a problem within the work system?
What is the performance discrepancy? What is the difference between
what is being done and what is supposed to be done?

Is it a skills deficiency?
Are there any barriers to performance? Does the person know what is
expected?

Have all the potential solutions been identified such as skills deficiency,
absence of potential, incorrect rewards, punishing consequences and
distracting obstacles?

Consider the following actions when dealing with negative deviations:
Identify the performance gap. The difference between the agreed
standards and the employees standards.

Consider training interventions to address under performance.
Stipulate specific deadlines, responsibilities and criteria to rectify poor
performance e.g. If further training is recommended, specify the date
when training should commence and end as well as who will be
responsible for progress reports.

If employee is able but unwilling to meet the performance standards
consider instituting disciplinary action measures in line with the
companys policy and procedures.


82
Recruit and select
candidates to
fill defined positions
Plan and prepare for recruitment and selection.
Recruit applicants.
Select staff.
9 90
83

3.1.1. Information is obtained on the position that is relevant and complete.
Range: The information can include, but is not limited to, job description, job
specification, job profile or job order.
3.1.2. A selection procedure is selected or designed and is ensured to be appropriate for
the specific position and in line with organisational and legal requirements.
Range: Organisational requirements could include policies regarding internal and
external applicants.
3.1.3. The selection procedure is confirmed to be a validated procedure.
3.1.4. Resources and methods needed for recruitment and selection are identified and
budgets prepared and managed. The resources are available, within budget and fit
for purpose.
Range: Recruitment methods can include the printed or electronic media,
networking or executive search.
3.1.5. Selection criteria and control procedures are developed in line with organisational
and legal requirements, and avoid partiality or bias. 3.1.6. A plan is developed that
ensures effective and efficient recruitment and selection.
Range: The plan covers timing; resource allocation; contingencies; methods for
recruitment, verification of information, selection, and nature and medium of
communication and feedback.


PLAN AND PREPARE FOR
RECRUITMENT AND SELECTION.
Job analysis is a systematic process of collecting data and making certain
judgements about all of the important information related to the nature of a
specific job.
Job analysis can also be considered as the procedure used to determine:
a description of the job itself, including the tasks that the job holders
should perform (job description)
and the skills and qualifications needed to perform those tasks
(job specification).
Job description is a written document in which management explains what
the employee does, how he does it and under what circumstances the task is
carried out.
Job specification is developed from the job description and defines the
qualifications, experience and personal qualities required by the job holder
and any other necessary information on special demands made by the job,
such as physical conditions, unusual hours or travelling away from home.
84

CHAPTER 3: RECRUITMENT AND SELECTION
INTRODUCTION
Human resources planning describes the intended actions of the organisation to
ensure that the organisation has the right number and right mix of people at the
right time and place to achieve present and future organisational goals, efficiently.

Human resources planning forms the first step in the human resources provision
process. The concepts underlying human resources planning is job design, job
analysis, job specification and job description. Before any decisions can be taken
with regards to the number and types of individuals necessary to carry out a job,
one first has to look at the job itself.
Different approaches can be followed during job design, for example:

Job enlargement: Job enlargement increases the number and variety of tasks
that an individual performs, which results in jobs with more diversity. Whole jobs
eliminate repetitiveness and give more meaning to the work.

Job enrichment: Job enrichment refers to the vertical expansion of jobs. It
increases the degree to which the worker controls the planning, execution and
evaluation of his job. An enriched job allows workers to do a complete activity,
increases the employees freedom, independence and responsibility and provides
feedback so individuals will be able to assess and correct their own performance.

Job simplification: This means that the job is divided into smaller parts so that
lower skilled employees can carry out the less important parts.

Job rotation: Job rotation increases variety by permitting workers to shift jobs
periodically. The strength of job rotation is that it reduces boredom through
diversifying the employees activities and makes it possible to distribute
unpleasant jobs.

The job design has a definite influence on the employees motivation to perform
and thus on the organisation and organisational effectiveness.

JOB DESIGN
The term job design refers to the way that tasks are combined to form complete
jobs. Some jobs are routine because the tasks are standardised and repetitive
and others are non-routine. When jobs are changed, job redesign takes place.
Job re-design refers, more specifically, to any activities that involve the
alteration of specific jobs that seeks to increase both the quality of an
employees work experience and on-the-job productivity.
85
LESSON

3.1

Figure 1: The job analysis process

METHODS OF JOB ANALYSIS:

Methods of job analysis can be classified into two main groupings: general
techniques and specialised techniques. General techniques are now briefly
discussed. According to Gerber, Nel & Van Dyk (1998) it is possible to use any of
the four techniques now discussed in combination.

Although this is very expensive and time-consuming, all four techniques may be
used simultaneously to do a comprehensive job analysis.

Job Analysis
Obtaining all relevant
job information
Job Description
Described the job itself

A statement defining the overall purpose
of the task, main tasks to be carried out
and work circumstances.
job title;
summary;
tasks;
equipment, materials used;
authority;
working conditions;
Job Specification
Lists the personal requirements
needed to carry out the job

A statement that spells out the human
capacities necessary for the task
level of education required;
training requirements;
experience needed;
skills and knowledge (as well as
interpersonal, emotional and
physical etc. skills e.g.
communication skill or computer
skills)
unusual demands e.g. good
balance for construction workers
JOB ANALYSIS

Gerber, Nel and Van Dyk (1987) described job analysis as a systematic
process of collecting data and making certain judgements about all of the
important information related to the nature of a specific job. Job analysis
gathers, evaluates and organises all the relevant information about the job and
the skills requested to perform the job. This information is then used to develop
a job description, job specification and job standards.
86

Observation: The job analyser physically observes the actions and activities
carried out by an employee in the course of his task. Tasks that are carried out by
hand, that are usually standardised, and which have a short activity cycle such as
the tasks of a filing clerk are examples where direct observation can be carried
out. During observation the job analyser must ensure that he covers a
representative sample of individuals who carry out the specific task and ensure
that he observes relevant work behaviour.
The Interview: Gerber, Nel and Van Dyk (1998) states that the interview is
probably the most commonly used job analysis technique and is often used
together with the observation technique. During the interview, the job analyser
can communicate directly with the incumbent. The interview must also be
planned, meaningful questions must be asked, and it must be ensured at all times
that the communication between the incumbent and the job analyser is accurate.
A structured set of questions is usually used so that the answers of the employees
can be compared with each other.
Questionnaires: Two types of questionnaires can be used, namely the structured
questionnaire and/or the unstructured questionnaire. The structured questionnaire
contains specific questions with regard to the job, job requirements, work
circumstances and equipment. The unstructured questionnaire can for example
ask the employee to describe the task in his own words. The questionnaire is an
effective method to obtain a large quantity of information within a short time.
The employees diary/logbook: Employees can use a diary/logbook to keep record
of all the job duties, frequency of the duties and times when the duties are carried
out. The job analyser can use such a diary/logbook where it is difficult for him to
observe the employee while carrying out the job. However this is often an
unreliable source because employees often fail to update these diaries/logbooks
daily.

THE MAIN POINTS TO BE INCLUDED IN A JOB DESCRIPTION ARE:
The location of the job division, department, branch or section;
The title of the job such as sales manager or cashier;
The job title of the individual to whom the job holder is responsible;
The job status;
The job titles of any individuals responsible to the job holder and the number of
employees he/she supervises;
The job summary this provides a list of the most important functions and
activities of a post;
A brief description of the overall purpose of the job;
Details of the equipment or tasks used or any special requirements to deal with
people, inside or outside the company;
Information with regard to the remuneration associated with the job;
The amount of travelling that may be required;
Special circumstances such as shifts or night work, considerable overtime or
weekend working, unpleasant or dangerous working conditions;
JOB DESCRIPTION
The job descriptions is a written document in which management spelled out
what the employee does, how he does it and under what circumstances the task
is carried out.
87
LESSON

3.1
Job standards stating how the employees are expected to carry out each of the
main duties and responsibilities spelled out in the job description.

Job specifications can make use of the judgement of supervisors or human
resources managers to determine which requirements with regard to training,
intelligence, skills etc are necessary for certain tasks. The information on
qualifications, experience and qualities, can be derived from an analysis of the
knowledge and skills needed to carry out the job. These should therefore be
specified and the list should be as exact as possible so that the interviewer can
ask direct questions about what the applicant knows or can do.

Job specifications can also be based on statistical analyses which are far more
objective, but also much more difficult to compile. A statistical analyses is carried
out to test the relationship between personal skills (such as intelligence) and task
performance.

Human resource planning describes the intended actions of the organisation to
ensure that the organisation has the right number and right mix of people at the
right time and place to achieve efficiently present and future organisational goals.

THERE ARE EIGHT ADVANTAGES TO HUMAN RESOURCE PLANNING:

1. Human resources can be deployed in support of basic strategic objectives of the
company.
2. Management gains an improved understanding of the influence of business
strategy on human resources and of human resource activities on business
strategy.
3. People may be planned for, and used, more effectively and efficiently, in year-to-
year and day-to-day operations.
4. Human resources may be continuously upgraded by the implementation of
planning for recruitment, termination, training, development, career management
and rewarding for performance.
5. Employees will be more satisfied with the quality of work-life. This will facilitate the
management of change, good community relations, and the recruiting of suitable
people.
6. Easy diagnosis and solution of problems involving human resources will be
possible because planning essentially provides a model of the human resource
system. This implies that improved analysis of costs can be made.
7. Equal employment opportunity and affirmative action requirements may be
achieved because objectives and actions are spelled out in plans.
8. Shortages of key technical and managerial skills may be reduced or prevented.
JOB SPECIFICATION
The job specification is developed from the job description and defines the
qualifications, experience and personal qualities required by the job holder and
any other necessary information on special demands made by the job, such as
physical conditions, unusual hours or travelling away from home. The job
specification should also refer to terms and conditions of employment such as
salary, fringe benefits, hours and leave.
88

JOB SPECIFICATION TEMPLATE
JOB TITLE
PURPOSE OF THE
JOB
Provide an overview of the job, its context in the organisation, and the
contribution that it makes.
DUTIES AND
RESPONSIBILITIES
Outline the main daily duties, tasks and responsibilities of the position.

CANDIDATE Consider the type of person that will be suitable for the position. E.g. Will the
person be working in a team or independently?
REPORTING
STRUCTURE
List the person/s to whom the candidate will report to.
TYPE OF
EMPLOYMENT
Full time, part time, contract or permanent employment
SALARY Indicate the salary applicable to the position.
BENEFITS AND
PERKS
List the benefits such as medical aid, subsidised canteen, car allowance, etc.
PROBATION Establish the probation period.
START DATE:
CLOSING DATE:
PERSON SPECIFICATION
KNOWLEDGE Indicate what knowledge is required to do the job successfully. E.g. Does the
person require understanding of a defined system, practice, method or
procedures?
Essential:
Desirable:
WORKING SKILLS Indicate the required skills specific to the job. E.g. language skills, computer
skills etc.
Essential:
Desirable:
GENERAL SKILLS/
ATTRIBUTES
List the general skills required to do the job. E.g. Communication skills, ability
to delegate, leadership skills etc.
Essential:
Desirable:

89
LESSON

3.1
JOB SPECIFICATION TEMPLATE CONTINUES...
EXPERIENCE List the required experiences and/or achievements needed in a field,
profession or specialisation.
Essential:
Desirable:
EDUCATION Indicate the level of education required.
Essential:
Desirable:
QUALIFICATION Indicate the professional qualification/s and/or specific occupational training
needed to perform the tasks.
Essential:
Desirable:
90

THE HUMAN RESOURCE PLANNING PROCESS

HUMAN RESOURCES PLANNING ACTIVITIES:

The responsibility for establishing strategy is that of top management. The human
resource department provides information about human resources to top
management in the conduct of strategic planning. From this it is clear that the
human resources planning is an important part of the overall strategy of the
organisation and includes a series of activities as follows:

Human resource planning is an activity undertaken at the top management level of
an organisation.

FACTORS THAT INFLUENCE HUMAN RESOURCES PLANNING:

A. Internal Factors:

Objectives of the organisation If growth is one of the organisational objectives,
provision must be made for sufficient personnel in the case of expansions. This
will require effective planning for additional employment.
Organisational style / Management philosophy.
The nature of the work will exercise an important influence on human resources
planning.
Work groups, their functioning and the mutual interaction of work groups must be
taken into account.
Leadership styles and experience how the leader will handle the employees will
determine how many employees will be necessary to carry out the task and how
often these employees will have to be replaced.

B. External Factors:

Trade unions that can set certain requirements with regard to the number and type
of employees for a specific task.
Government requirements and regulations that can, for example, determine that
only employees with special training are allowed to carry out a specific task.
Economic conditions.

Analysing current resources
Assessing future human resources needs
Developing a programme to meet future human resource needs.
91
LESSON

3.1
THE HUMAN RESOURCE PLANNING PROCESS:
General components of the human resources planning process:

1. The objectives and the strategic plan of the organisation. The human
resources management cannot plan in advance without sufficient information with
regard to aspects such as possible expansion in the activities of the organisation,
marketing of new products, development of new markets etc. Factors to take into
account is:
i. The overall strategic plan of the organisation
ii. The nature of the organisation
iii. Type of product.
Human resource planning is generally done for a period of one year.

Provision should also be made for succession planning, which includes the
preparing of specific candidates (current employees) to replace existing
employees when they retire, are promoted or transferred.

2. The current human resources inventory. Companies normally maintain a
master file of employee records and skills. This is often referred to as a skills
inventory or a human resources information system. Such a system provides
information with regard to all the employees in the service of the organisation, form
unskilled employees to top management.
Gerber, Nel and Van Dyk (1998) stated that:A skills inventory will, among other
things contain the following information:
Personal information such as name, date of birth, sex;
Training, for example diplomas or degrees obtained or special training courses
completed;
Service record current job, salary scale, previous employers;
Performances and potential results of performance evaluation, appraisal centre
evaluation;
Career prospects personal plans for training, specific tasks and placements.

3. Future manpower requirements: In the planning process human resources
forecasting involves establishing the future demand for employees with certain
skills, as well as an estimate supply of employees who will be available.

The supply consists of two groups of employees: those who are currently
employed by the organisation and who will still be available at a specific period
and external candidates who must be appointed. According to Gerber, Nel and
Van Dyk (1998), the forecast of the future need can be influenced by various
factors. The most important factor is the strategic plan of the organisation. Other
factors, both internal and external should also be taken into consideration.

Internal factors include:
The age structure of the labour force;
How long the employees stay with the organisation on average;
Productivity;
Absenteeism;
Overtime.

92

External factors include:
Skills available in the labour market;
Competitors in the labour market;
Accelerated technology;
New work patterns and attitudes;
Current remuneration levels;
Affirmative action measures and the Employment Equity Act.

The estimate of future human resources by class of worker is also useful in the
planning for:
Training, benefits etc.
Payroll costs.
Equipment required.
Factory and office floor space.

Human resources planning, which precedes recruitment and selection, involves
preparing profiles of the work force of the future by describing it in terms of:
Number of workers currently employed;
Competencies and skills of current employees;
Age and equity distribution of workers;

4. Net change to satisfy future manpower requirements: Future manpower
requirements are basically derived from business plans and the organisations
sales forecast. Klatt/Murdick/Schuster (1985) stated: the net change in
requirements from the present to a specified future date is affected by attrition,
productivity factors and certain constraints.

Attrition refers to the situation when people leave the company, for whatever
reason. People leave the company because:
they resign for professional opportunities or personal reasons
their employment contracts are terminated
they become disabled or to ill to work
retire or
pass away

Productivity factors. Fewer workers be may needed to close the gap between
present inventory and future greater demand if the company can find ways to
increase the productivity, or outputs per hour, per worker.
Three ways that this may be accomplished are:
Better management work planning, increased investment in equipment for
workers.
Improved leadership and motivation.
Productivity programmes (Klatt, Murdick & Schuster, 1985).

93
LESSON

3.1
CONSTRAINTS MAY REDUCE OR CHANGE THE CHARACTERISTICS OF THE NET
DIFFERENCE.
CONSTRAINTS SUCH AS:
Affirmative action requirements is not suppose to affect the number of people
required, however it is possible to ensure that these programmes can be
successfully implemented. An employer may have to select an individual who is
qualified for a job but perhaps does not have the experience or training of an
existing employee.
Overtime policies and legal limits on overtime When overtime is reached on
an extended basis, the company will have to recruit additional workers or delay
deliveries or products.
Machine and facility constraints If the organisation cannot obtain the required
equipment or afford to buy it within a certain period of time, it would not make
sense to plan for the people who would operate such equipment.
Cash flow constraints The organisation must have working capital and cash
available to employ additional people.

5. Forecasting manpower requirements : Forecasting represents an estimate of
the future. The Manpower forecast make use of some model or technique that
range from past data to the future. The computer is a very effective tool in the
execution of forecasting methods. Klatt, Murdick and Schuster (1985) stated: that
forecasting manpower requirements is a quicker, simpler and usually less accurate
approach than deriving future requirements from business and organisational
planning. Following are some brief descriptions of forecasting techniques.

Trend projection: The number of people in the company may be plotted against
time, and a straight line or sketched curve may be drawn as a projection into the
future.
Regression methods: There is definitely a causal relationship between number
of employees and sales. Based on past data a regression curve can be drawn as
follows:

If these sales can be forecasted reasonably well, the total employee requirements
may then be forecasted from the regression line.

Composite department demand: Each department estimates the number of
employees it will require on a specified future date. These estimates can then be
combined into a composite demand figure, for the forecasting of total manpower
requirements.
4
No of employees 3 .
(100s) 2 . .
1 . .

100 200 300 400
Sales (100 units)
94

ASSESSMENT IS BASED ON EVIDENCE GAINED FROM ANY THREE OF THE FOLLOWING:
Applications
Curriculum vitae
References
Previous performance
Test results
Assessment interviews schedules
Portfolio of evidence (POE)
Recognition of prior learning (RPL)
Current competencies

LEGISLATION THAT IMPACTS ON THE RECRUITMENT AND SELECTION PROCESS

Transformations in South-Africa has uncovered recruitment and selection policies
and procedures in many companies demonstrating a lack of professionalism and
filled with unfair discrimination. These processes have contributed to a twisted
labour market, with race and gender groups allocated to specific jobs and levels,
and the disabled mostly excluded. South-Africa is in the process of correcting
many of its contraventions of International Labour Organisation principles - one of
which correspond with the requirements of section 23 of the Constitution in
relation to issues of unfair discrimination.

With the promulgation of the Employment Equity Act (EEA) 55 of 1998 and the
various Code of Good Practice annexed to this Act, it has become imperative that
recruitment and selection processes are conducted in a responsible and
accountable manner. Organisations have to take great care that no person is
discriminated against and that the selection process is guided by the
organisations equity plan. The most important Sections of the EE Act are
Chapters two and three. Chapter Two deals with prohibition of unfair discrimination
and Chapter three deals with affirmative action.

In recruiting and selecting a candidate for a position in the organisation, it is
important to ensure that the candidate is firstly capable of performing the job and
secondly that the candidate is not discriminated against in the process. While the
selection will be based on the most suitable or competent candidate the principles
and guidelines of Chapter two of the Act needs to be considered.

Thus a candidate from a designated group who is suitably qualified may be given
preference over a non-designated candidate.

For the purpose of recruitment and selection we will focus our attention on the
following sections in Chapter two of the Act.
SECTION 5 ELIMINATION OF UNFAIR DISCRIMINATION
SECTION 6 PROHIBITION OF UNFAIR DISCRIMINATION
SECTION 7 MEDICAL TESTING
SECTION 8 PSYCHOLOGICAL TESTING AND OTHER SIMILAR ASSESSMENTS
SECTION 9 APPLICANTS

95
LESSON

3.1
THE LABOUR RELATIONS ACT CHAPTER 2, SECTION 5, PROTECTION OF EMPLOYEES
AND PERSONS SEEKING EMPLOYMENT.
Harassment in any form is classified as discrimination. Discrimination against an
applicant because of his/her trade union membership, amounts to victimisation.

The constitution recognises the rights of equality and fair labour practices.
The Employment Equity Act (EEA) prohibits unfair discrimination in any
employment practice or policy
The (EEA) protects against unfair discrimination towards job applicants.
Employment policies and practices, in terms of the EEA, include recruitment
procedures, advertising and selection criteria.
Designated groups as defined by the act must be accommodated. Designated
groups means black people, woman and people with disabilities. This is called
reasonable accommodation. Companies need to make modifications or
adjustments to their recruitment and selection criteria to enable access to a
position or advancement.
The selection process must be able to accommodate people with disabilities. This
can be done by ensuring access to the company premises during interviews and
once the applicant has been appointed.
Fair discrimination may occur and be justifiable where affirmative action measures
are taken and are due to the natural requirement of the job specification, in line
with the provisions of the Employment Equity Act and the Labour Relations Act.
However, the main purpose of the EEA and LRA is to promote fair and non-
discriminatory practices and policies. Selection and recruitment processes and
their application need to reflect the Constitution and the labour statutes by
providing equal opportunities in the workplace. The implementation of affirmative
action measures is recognised as an exception to differentiation and would not
be viewed as a form of discrimination.
Remember that disability can not be the sole reason for not appointing an
applicant. The only reason for non-placement could be if the disabled person can
not perform the specific tasks stated in the job requirements.

Chapter two, Section 6(a) of the EEA provides that it is not unfair to discriminate in
order to give effect to affirmative action measures consistent with the purpose of
the Act.

Affirmative action measures are defined in Chapter two, section 15. The EEA,
section 20 defines a suitably qualified person in a way relevant to the recruitment
and selection process: The suitability for a job as a result of any one of, or any
combination of, the persons formal qualifications, prior learning, relevant
experience or capacity to acquire within a reasonable time the ability to do the job.
EEA Section 20(3).

Furthermore section 20(5) states: In determining whether a person is suitably
qualified for a job, an employer may not unfairly discriminate against the person
solely on the ground of lack of relevant experience. Direct discrimination can be
defined as the less favourable treatment of an employee on some irrelevant
ground.

96

Unless the employer can demonstrate that certain requirements, specifications or
exclusions are absolutely fair and valid to the requirements of the job or that they
are affirmative action based the following requirements would constitute direct
unfair discrimination:

DIRECT UNFAIR DISCRIMINATION
A specific cultural fit
Gender e.g. must be male or female
Conventional dress
Marital status e.g. must be single
Family responsibilities e.g. may not have small children, this could interfere with
job responsibilities
Age e.g. must be between 20 and 25 years old
Bilingualism e.g. must be fluent in English and Afrikaans
Race e.g. applicant must be white
Religion e.g. must be a Christian
Disability e.g. HIV positive, diabetes, dyslexia, handicapped

INDIRECT UNFAIR DISCRIMINATION:
This includes neutral conduct which impacts unreasonably on an individual or on
specific groups, such as the:
unsuitable use of tests during recruitment and selection;
unsuitable use of tests results;
setting of unrealistic selection criteria;
use of inappropriate selection methods;
inconsistency in questions asked during interviews;
media selection for advertising purposes;
medical test prior to employment. Such information is regarded as highly
confidential;
not inviting or considering internal applications.

MAKING SURE THAT THE RECRUITMENT AND SELECTION PROCESS IS JUSTIFIABLE AND
LEGAL:
1. Job related targets: The character or skills needed to successfully complete the
job. This is done through the job analysis process.
2. Job Related components: The selection criteria must be related to the specific job.
3. Consistency in handling the applicants: Only minimum job requirement must be
established. This is also referred to as essential job requirements. This will ensure
that the same criteria is applied to all applicants. The job analysis should not
define criteria such as excellent verbal communication skills also state the
minimum requirement in order to be consistent. In this case rather define the
selection criteria as: must be competent in communication at NQF level 4. The
minimum job-related behaviour must also be stipulated not simply as enthusiastic
and motivated.
4. Discrimination must be based on the essential requirements of the job in order for
the discrimination to be fair. It is imperative to specify the discriminatory criteria,
such as a nurse needing a nurses qualification or a pharmacist needing a
pharmaceutical qualification.
5. Applications should be compared in the same manner. It is advisable to draft a
standard C.V. document for candidates to complete. All qualifications should be
noted as having value, not only those directly required by the job.

97
LESSON

3.1
6. The companys basic requirements can be screened by telephone. Decide on two
or three critical components and do not deviate from the set criteria.
7. Advertising:
The rules and regulations as set out in the internal recruitment and selection policy
should be followed. The position should first be advertised internally by email or
Company magazines and other internal procedures.

DETAIL ON THE ADVERTISEMENT:
Give specific information on the available position;
Essential requirements of the job;
Benefits included in the position;
Documentation required by the company for admin purposes;
The contact person for more information regarding the position. This is normally
the HR Manager or HR assistant.

Advertisements may not discriminate in an unfair or arbitrary manner. In case of
Employment Equity position this information may be noted in the advert.
Careful consideration should be taken when selecting an advertisement for a
newspaper as the newspaper should reach all population groups. For instance
some companies may prefer to advertise a position in an Afrikaans newspaper or
FHM magazine to ensure they get the desired population group or gender replying
to their adverts. Advertisements must ensure that a specific group is not targeted.
Advertisements must be user-friendly and state criteria that is real. Advertisements
should inform prospective candidates if they are required to participate in a
selection procedure at the time of the interview. Example: all applicants are
required to take a 60 minute written test. We will be assessing your reading,
writing and comprehension skills. Please inform the HR manager on submission of
your application if, as a result of your disability, you will need any special
arrangements made to write the test. It is useful to be informative about the
company. Some people do not enjoy working in large companies other would not
feel comfortable working in an industrial area. Being specific about employment
benefits gives people a sense of direction as to whether they would gain or lose by
applying for this position that is advertised. Be specific about the recruitment
process to be followed. State clearly what you require from them such as: Certified
copies of the qualifications, psychometric testing, nature of the interview and
reference checking.

THE JUSTIFIABLE AND MEANINGFUL INTERVIEW:

1. Avoid questions regarding:
1.1 Age
Candidate may not be discriminated against in respect of their age, in particular
candidate above 40. Although age is regarded as a sensitive issue in the
recruitment process, it is accepted where age is a factor for the job-requirement.
Example: Candidates need to produce a valid drivers license. The ID number
provides information regarding the candidates age, but may only be requested if
proof of identification is a job requirement.
1.2 Race
1.3 National origin (only to be used when determining legal residence)
1.4 Religion
1.5 Marital status
1.6 Sexual preference
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1.7 Number of dependents
1.8 Child care
1.9 Housing circumstances
1.10 Criminal record
1.11 Health or disability status
2. Phrase questions clearly:
Questions regarding travel and long hours, if not asked correctly, may be regarded
as discriminatory;
Examples:
Incorrectly phrased questions: Will it be a problem for you as, you will be
travelling with a man (woman) extensively?
Correctly phrased question: You will be travelling extensively with your district
manager during the first three months of training. Does this present a problem?
3. Legislation prohibits questions that might imply discriminatory bias.
Example:
I have noted the High school recorded in your C.V. Is that not a Catholic school?
4. Always explain the reason behind sensitive questions. Explain the job-
requirements and how this relates to the specific job.
5. Use a structured interview guide with possible questions to avoid unintentionally
straying outside the boundaries of job-related criteria. This will ensure that a fair
process will continue through the interviewing process of each candidate, as each
candidate will be asked the same questions. The employer may not base his
decision on personal preference, but merely on facts presented during the
information gathering process.
6. The employer or interviewer must make it clear to the candidate that should he/she
misrepresent him/herself during the interview and the information is uncovered the
candidate will be eliminated from the selection process or if discovered after
induction the employee will face immediate dismissal.
7. Policies and procedure regarding candidate not within easy access of the
interviewing premises (out-of-town) should be given enough time to attend the
interview. Example: in some cases candidates will have to arrange for flights form
Cape Town to Johannesburg. Ideally these provisions should be stated in the
advertisement.
8. Asking about a candidates disability is regarded as discrimination, however asking
about the candidates ability to perform the task and skills described in the job
essential functions with or without reasonable accommodation is allowed.
Example: This job requires you to carry boxes of A4 papers to the dispatch
department which is often up and down stairs. Would you be able to do this with or
without reasonable accommodation? If questions are about the applicants ability to
perform essential tasks and skills and not about his/her disability, they are
permissible.

REFERENCE CHECKING:
Remember that opinions of previous employers are not regarded as an
appropriate means to establish information regarding the candidate.
REJECTION LETTERS:
Rejection letters must be written after the interview and not during the interview.
Applicants can be rejected at any stage of the predetermined selection points
therefore draw up a standard reply letter with the following information:
A general explanation for the rejection, not an exact one.
Sincerely thank the applicant for the effort in applying for the job
Wish the candidate well on his/her job search
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Avoid ANY personal criticism. The candidate was simply not suitable for the
particular position.
Indicate that there where candidates with more suitable skills or that the company
has decided to continue their search for suitable applicants that will closely meet
the selection criteria.

EXTRACT: CODE OF GOOD PRACTICE ON THE INTEGRATION OF EMPLOYMENT EQUITY
INTO HUMAN RESOURCE POLICIES AND PRACTICES.
NOTICE 1358 OF 2005
DEPARTMENT OF LABOUR
EMPLOYMENT EQUITY ACT, 1998 (ACT 55 OF 1998)

Notice is hereby given that the Code of Good Practice on the Integration of Employment
Equity into Human Resource Policies and Practices set out in the schedule is issued by
the Minister of Labour on the advice of the Commission for Employment Equity, in terms
of section 54 (1) (a) of the Employment Equity Act, 1998 (Act No 55 of 1998).

1. FOREWORD

The Employment Equity Act, 55 of 1998 ("the Act") imposes a duty on employers to
eliminate unfair discrimination. It also provides a framework for the attraction,
development, the advancement and retention of an employers human resource talent.
Research has shown that employers can increase productivity, motivation and
resourcefulness in the workplace when they invest in their people and treat them with
fairness and equity. This is secured by eliminating the historical barriers that prevent the
advancement of the designated groups (Black people including African, Coloured and
Indian, Women and People with Disabilities). This ensures that positive or affirmative
action measures are in place to expedite their growth and advancement.

In the context of challenges of a compounded diverse global economy and Constraints
around infrastructure, skills, poverty, unemployment and service delivery, employers are
increasingly aware that having racial, gender and disability diversity is key to business
growth and development. Sustaining this growth requires ongoing commitment toward
eliminating barriers, including skills development, in its general and specific forms. Some
of the main challenges for employers include; attracting, managing, developing and
retaining talent in the workforce through effective human resource management. In this
context, the implementation of effective employment equity strategies will assist
employers to maximize human resource development through the eliminating unfair
discrimination and barriers and by promoting affirmative action. This Code provides
guidelines to assist employers in implementing these initiatives.

2. OBJECTIVE

2.1. The objective of this Code is to provide guidelines on the elimination of unfair
discrimination and the implementation of affirmative action measures in the context of key
human resource areas, as provided for in the Act. This Code is not intended to be a
comprehensive human resources Code, but rather an identification of areas of human
resources that are key to employment equity and can be used to advance equity
objectives.

2.2. The guidelines in the Code will enable employers to ensure that their human resource
policies and practices are based on non- discrimination and reflect employment equity
principles at the commencement of employment, during employment and when
terminating employment.
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3. SCOPE AND LEGAL PRINCIPLES

3.1. This Code is issued in terms of section 54 of the Employment Equity Act and must be
read in conjunction with the Act and other Codes issued in terms of the Act1.
3.2. The Code should also be read in conjunction with the Constitution of South Africa and all
relevant legislation, including the following:
3.2.1. the Labour Relations Act, 66 of 1995 as amended;
3.2.2. the Basic Conditions of Employment Act, 75 of 1997 as amended;
3.2.3. the Skills Development Act, 97 of 1998;
3.2.4. the Skills Development Levies Act, 9 of 1999; and
3.2.5. the Promotion of Equality and Prevention of Unfair Discrimination Act, 4 of 2000.

3.3. This Code applies to all employers and employees covered by the Act.
3.4. This Code is intended to be a tool to aid employers to implement employment equity by
providing principles that should be incorporated into employment equity plans and that
guide policies and practices. This Code is also intended to provide guidelines to
employers to consider and apply as appropriate to their circumstances.

4. STRUCTURE OF THE CODE

4.1. The structure of this Code mirrors the life cycle of an employee in employment. It deals
with possible barriers and unfair discrimination that could occur at each phase, including
commencing employment, during employment and on termination of employment. It also
describes affirmative action measures that could be used at each phase to advance the
objectives of the Act.
4.2. Each topic focuses on the following areas:
4.2.1. Scope. This section provides a brief definition of the topic in the context of the
employment life cycle.
4.2.2. Impact of employment equity. This section deals with non-discrimination principles and
affirmative action measures that are relevant to the topic.
4.2.3. Policy and practice matters. This section provides information about the policy and
practice matters that could arise, and makes suggestions regarding their implementation.
4.2.4. Link with other areas. This section identifies cross- references to other key topics as well
as other relevant Codes and legislation dealt with in the Codes.

5. IMPLEMENTING EMPLOYMENT EQUITY

5.1. SCOPE
5.1.1. Implementing employment equity involves two key initiatives:
5.1.1.1.Eliminating unfair discrimination in human resource policies and practices in the
workplace; and
5.1.1.2 Designing and implementing affirmative action measures to achieve equitable
representation of designated groups in all occupational categories and levels in the
workplace.
5.1.2 This section provides a general outline of these areas and the different conceptual and
methodological approaches used to deal with them in the workplace.

5.2. IMPACT ON EMPLOYMENT EQUITY Eliminating unfair discrimination
5.2.1 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 like 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. These "prohibited" or other arbitrary grounds cannot be taken
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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.
5.2.2 The Act 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 recognize. 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 employers motive and intent is generally considered to be irrelevant in
determining whether unfair discrimination has occurred. In certain circumstances, the
refusal to make reasonable accommodation of an employees needs and circumstances,
where this can be done without undue hardship to the employer, can constitute unfair
discrimination.
5.2.3 Equality can involve a formal notion of treating everyone who is in a similar position the
same. This can perpetuate unfairness when those who hold similar positions e.g. all
senior managers have different needs and circumstances that impact on their ability to
perform effectively. The Constitution requires employers to move beyond formal equality
to substantive equality by acknowledging the differences between employees and treating
them differently on the basis of those differences. This is necessary to ensure that all
employees are treated fairly. Equity therefore invokes the requirement of "fair" treatment
in order to achieve substantive equality as an outcome in the workplace. Equal treatment
and equal opportunity, like equality, subjects everyone to the same rules without
distinction. Equity requires changing the rules so that their application is fair.
5.2.4 Unfair discrimination is prohibited in the workplace. In order for employers to execute one
of their primary responsibilities of eliminating all forms of unfair discrimination in the
workplace, it is recommended that all employers should conduct an audit and analysis of
all their employment policies and practices, as well as the working environment and
facilities. The audit should identify whether any of the policies or practices applicable in
the workplace contain any unfair discrimination or barriers to the recruitment, promotion,
advancement and retention of members of designated groups. Once the actual or
potential barriers are identified, an employer should consult about the strategies for
eliminating these barriers. These strategies should be incorporated into the development
and implementation of the Employment Equity Plan for that workplace. Regular monitoring
in the workplace should occur to ensure that the unfair discriminatory policies or practices
do not recur or manifest themselves in different ways.
Implementing affirmative action measures to achieve employment equity
5.2.5 Removing barriers* is only the first step towards ensuring fairness and equity in the
workplace. In the context of historical disparities in South Africa, the Act requires
employers, employees and representative trade unions to jointly develop strategies to
advance designated groups by adopting appropriate affirmative action measures and
incorporating them into formal Employment Equity Plans. Affirmative action measures are
essentially remedial measures designed to achieve equity in employment as an
outcome4.

5.3. POLICY AND PRACTICE
5.3.1 This section provides guidance in relation to the audit, analysis and consultation aspects
of the employers obligations*.
5.3.2 Under the Act every designated employer is required to undertake four processes when
developing a strategy to implement employment equity.
5.3.2.1. consulting with its employees and representative trade unions;
5.3.2.2. auditing and analyzing all employment policies and practices in the workplace and
developing a demographic profile of its workforce;
5.3.2.3. preparing and implementing an employment equity plan; and
5.3.2.4. reporting to the Department of Labour on progress made on the implementation of its
employment equity plan.
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The policy and practice analysis
5.3.3. Employers should develop realistic employment equity plans that are workplace specific
and capable of measurement. This should be informed by conducting a comprehensive
audit and analysis of all existing and potentially unfair discriminatory practices and
barriers.
5.3.4. The analysis of policies and practices as well as other written documentation can be done
through the collection of the information, listing what is applicable and identifying whether
any documentation reflects direct or indirect unfair discrimination or barriers to the
advancement of designated groups.
5.3.5. Practices are generally the informal or unwritten rules that prevail in the workplace and
can be analysed through a combination of employee attitudinal surveys, individual
interviews and focus groups to establish perceptions of their impact on achieving
employment equity.
5.3.6. The relevant questions to be posed in the analysis would involve looking at whether the
policy or practice is:
5.3.6.1.unfairly discriminatory;
5.3.6.2.valid;
5.3.6.3.applied consistently to all employees; and
5.3.6.4.compliant with legislation.
5.3.7. An employer should formulate appropriate barrier removal measures for each of the forms
of unfair discrimination identified in the audit of policies and practices. These mechanisms
would also be the subject of consultation and should be incorporated into the Employment
Equity Plan of that employer. Appropriate timeframes, strategies and responsibilities
should be allocated for each barrier removal measure.
5.3.8. An employer should communicate the outcome of the audit and analysis to employees in
as transparent a manner as possible. The method of communication will depend on the
culture of the employer; the frequency and common terms of communication; and the role
of the Employment Equity Forum or other consultative structure. The leadership of the
employer should also receive feedback to be able to provide strategic input with regard to
appropriate barrier removal.
Developing a workforce profile and setting numerical targets for equitable
representivity
5.3.9. A workforce profile is a snapshot of employee distribution in the various occupational
categories and levels. Under-representation refers to the statistical disparity between the
representation of designated groups in the workplace compared to their representation in
the labour market. This may indicate the likelihood of barriers in recruitment, promotion,
training and development.
5.3.10. Collection of information for the workforce profile is done through an employee survey. It
is preferable for employees to identify themselves to enable the employer to allocate them
to a designated group. Only in the absence of an employee's self-identification, can an
employer rely on existing or historical data to determine the employee's designated group
status.
5.3.11. The workforce profile should indicate the extent to which designated groups are under-
represented in that workforce in occupational categories and levels. This should be
compared to the Economically Active Population at national, provincial or regional, or
metropolitan economically active population or other appropriate benchmarks. Employers
should set numerical targets for each occupational category and level informed by under-
representation in the workforce profile and national demographics. The extent of under-
representation revealed by the workforce profile represents the ideal goal reflected as the
percentage for each occupational category and level for that workplace.
5.3.12. Employers, employees and trade unions should prioritise the least under-represented
groups within the workforce. For example, an employer in the consultation process should
focus more on the areas where the most imbalances appeared during the audit and
analysis.
5.3.13. Numerical targets will contribute to achieving a critical mass of the excluded group in the
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workplace. Their increased presence and participation will contribute to the transformation
of the workplace culture and to be more affirming of diversity. Employers are required to
make reasonable progress towards achieving numerical targets to achieve equitable
representation. This means that an employer should track and monitor progress on a
regular basis and update its profile continuously to reflect demographic changes.
5.3.14. Consultation The success of employment equity depends largely on the efficacy of the
consultation process. Employers, employees and trade unions must be willing to play a
constructive role in the consultation process. Regular and meaningful consultation will
contribute to a joint commitment to workplace transformation. It may also foster workplace
democracy and productivity. Consultation will ensure that realistic employment equity
plans are prepared which address the training and development of designated groups and
the adaptation of the workplace to affirm difference. The involvement of trade unions in
the consultation process is not enough. Employers must also consult with employees from
across all occupational categories and levels.
5.3.15. It is essential to ensure that whatever form consultation takes, it does not undermine
existing collective bargaining processes or existing relationships.
5.3.16. Transformation committees or other structures that already exist, which bring together
employees and management, may need to be adopted in order to serve the consultation
purposes of the Act. Necessary adaptations may include bringing in representatives from
segments of the workforce that do not already participate, including designated or non-
designated groups or trade unions. Where workplace forums exist, there should be a
vehicle for consultation, and attempts should be made to ensure that these are as
representative as possible. Where no structures exist or current structures are impractical
for employment equity consultation, the employer should initiate a process to establish a
consultative structure and or support an employee initiative of this nature. Criteria for
appointment of representatives to the structure, the number of representatives, their roles
and responsibilities and mandates will have to be clearly set out. The representatives on
the structure should be trained on understanding and implementing the key components
of the Employment Equity Act.
5.3.17. Disputes will inevitably arise in the course of consultation. Employees may feel that they
are not being sufficiently included in decision-making, or employers may grow frustrated at
delays that are occasioned as a result of the need to consult.

5.4. KEY LINKS TO OTHER TOPICS IN THE CODE
5.4.1. Performance management - senior management performance should be, amongst others,
measured against the extent to which they have achieved their numerical targets.
5.4.2. Recruitment and selection - an employer must take cognisance of numerical targets
when offering employment to suitably qualified job applicants.
5 4.3. Promotions - succession planning and decisions on promotion must take account of an
employer's numerical targets and ensure that under-represented groups in identified
categories are developed and promoted.

PART A: COMMENCING EMPLOYMENT
An employer can use a number of outreach and proactive mechanisms to attract
applicants from under-represented groups.
6. JOB ANALYSIS AND JOB DESCRIPTIONS
6.1. SCOPE
6.1.1. A job description outlines the role and duties of the job and consists of two components:
6.1.1.1. a description of the outputs of the job (what the job proposes to do. This description
should provide an accurate and current picture of what functions make up a job, and
should not include unrelated tasks. This should outline the job's location, purpose,
responsibilities, authority levels, supervisory levels and interrelationships between the job
and others in the same area; and
6.1.1.2. a description of the inputs of the job (i.e. what the person doing the job is required to do).
This description should provide details about the knowledge, experience, qualifications,
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skills and attributes required to perform the job effectively.
6.1.2. Employers should conduct a job analysis when developing a job description. A job
analysis is the process used to examine the content of the job, breaking it down into its
specific tasks, functions, processes, operations and elements.

6.2. IMPACT ON EMPLOYMENT EQUITY
Job descriptions may either advance or undermine employment equity depending on how
they are written. A job description should clearly state the essential or inherent
requirements of the job. These are the minimum requirements that an employee needs in
order to be able to function effectively in that job. These requirements should not be
overstated so as to present arbitrary or discriminatory barriers to designated groups.
However, in the interests of promoting the appointment of employees who may not meet
all the essential or inherent job requirements, an employer may decide that an employee
who has, for instance, six out of the ten threshold or essential requirements, will be
considered to be suitably qualified, subject to obtaining the outstanding requirements
within a specified time.

6.3.1. In order to ensure that job descriptions refer only to the essential or inherent job
requirements, they should comply with the following criteria:
6.3.1.1.Each task or duty in the job description is essential to be able to perform the job and is not
overstated;
6.3.1.2.The job description is free of jargon and is written clearly;
6.3.1.3.The competency specification includes only criteria essential to perform the duties. This
should be objective and avoid subjective elements that can be interpreted differently;
6.3.1.4.Experience requirements that are not essential, related or arbitrary to the job should be
excluded; and
6.3.1.5.Criteria do not disadvantage employees from designated groups.

6.3.2. An employer may also use job descriptions to promote affirmative action, for instance, by
incorporating potential as a requirement and making reference to development and
training to acquire additional skills and competencies.

6.3.3. A job description should be capable of flexible interpretation in the interest of promoting
affirmative action. In this regard, an employer may list all the minimum or essential
requirements of the job.

6.4.1. Recruitment and selection - Job descriptions that are flexible may aid the recruitment of
employees from designated groups in order to create equitable representation. Rigid job
descriptions may operate as a barrier to attracting individuals from designated groups with
potential.

6.4.2. Performance management - Specificity of job descriptions contributes to setting clear
performance objectives in an employee's career development plan. This may avoid
perceptions of unfair or discriminatory treatment in performance.

6.4.3. Skills development - A clear job description enables the identification of skills and
competency gaps. These gaps could be closed through appropriate interventions like
training and development.

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LESSON

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7. RECRUITMENT & SELECTION

7.1. SCOPE
7.1.1. Recruitment and selection is the process that employers use to attract applicants for a job
to determine their suitability. This involves various selection techniques such as short
listing, scoring, interviews, assessment and reference checks.
7.1.2. This section identifies some of the strategies that can be used to attract a wide pool of
applicants from designated groups.

Recruitment and selection processes should be conducted fairly and without unfair
discrimination. One of the barriers in the recruitment process is the inability to attract
sufficient numbers from the designated groups. Attracting as many applicants as possible
from designated groups may ensure that a larger skills pool is available from which to
recruit. Recruitment and selection is often the most important mechanism to achieve
numerical targets and to increase the representivity of designated groups in the
workplace.
7.2.1. A number of areas in recruitment and selection should be reviewed to eliminate unfair
discrimination: These include:
7.2.1.1.Advertising and head hunting;
7.2.1.2.The job application form;
7.2.1.3.The short listing process;
7.2.1.4.Interviews;
7.2.1.5.Job offers;
7.2.1.6.Record keeping; and
7.2.1.7.Reference checking.


7.3.1. The recruitment process should be informed by the employer's employment equity plan,
including the recommended affirmative action provisions.
7.3.2. Employers should have written policies and practices that outline their approach to
recruitment and selection. This document should:
7.3.2.1. reflect the values and goals of the employer's employment equity policy or ethos; and
7.3.2.2. include a statement relating to affirmative action and the employer's intention to redress
past inequalities.
7.3.3. Where an employer utilises the services of recruitment agencies, it should make the
recruitment agency aware of its employment equity policy.

Advertising positions
7.3.4. When advertising positions employers should refer to their employment equity policy or
values and indicate their position on affirmative action.
7.3.5. Job advertisements should place emphasis on suitability for the job, and should accurately
reflect the inherent or essential requirements (i.e. the core functions) of the job and
competency specifications.
7.3.6. Employers may consider placing all advertisements for positions internally even if a job is
being advertised externally. This will make current employees aware of the opportunities
that exist within the workplace.
7.3.7. When advertising positions, employers may state that preference will be given to
members of designated groups. However, this does not suggest that the process of
recruitment excludes members from non-designated groups.
7.3.8. Where possible, employers should place their job advertisements so that it is accessible
to groups that are under-represented.

106

7.3.8.1.Employees who are on maternity leave should be informed of positions advertised in the
workplace.

Job Application Forms

7.3.9. A job application form is a mechanism that is used by an employer as part of selecting a
suitable applicant for a position.
7.3.10. The purpose of a job application form is to:
7.3.10.1. standardise the information employers receive from job applicants. This should reduce
the probability for unfair discrimination;
7.3.10.2. ensure that the information received from job applicants focuses on the requirements of
the job and does not result in indirect unfair discrimination; and
7.3.10.3. obtain biographical information to provide an employer with an easy mechanism for
monitoring applications from various designated groups.

Short-listing of Job Applicants

7.3.11. Short listing is a process in which an employer considers all applications, including
curriculum vitae and other relevant documents. An employer should place those job
applicants who meet the criteria on a shortlist.
7.3.12. The process of short-listing job applicants should be standardized. Where no standards
exist, an approach should be decided on before short- listing commences.
7.3.13. An employer should consider involving more than one person in the process of short-
listing applicants to minimize individual bias.
7.3.14. The short-listing panel should be balanced in terms representivity.
7.3.15. Where an employer has outsourced the short- listing process, every effort must be made
to ensure that the process is consistent with the recruitment and selection policies of the
employer.
7.3.16. An employer should not rely on second hand knowledge or assumptions about the type of
work the applicant may be able to do.
7.3.17. An employer should ensure that it short-lists as many suitably qualified applicants from
designated groups as possible.
7.3.18. Suitably qualified* applicants must meet the essential job* requirements.
7.3.19. When short-listing, an employer could include applicants from designated groups who
meet most but not all the minimum requirements. These applicants with potential could be
considered for development to meet all the job requirements within a specified timeframe.
Interviews
7.3.20. An interview is a selection tool that provides an employer with the opportunity to meet a
job applicant face-to-face.
7.3.21. Employers should use the same panel in the short-listing and interviewing process.
7.3.22. Employers should provide training and guidance to the panel conducting the interviews
on:
7.3.22.1. interviewing skills;
7.3.22.2. the measuring system;
7.3.22.3. employment equity and affirmative action; and
7.3.22.4. matters relating to diversity, including skills for recognizing different dimensions of merit.

7.3.23. Employers may develop a standard interview questionnaire. This is a questionnaire
prepared before the interview listing a set of questions that will be asked of each applicant
interviewed to determine the applicant's suitability for the job. The interview questionnaire
should be based on the job description, particularly essential elements of the job and
competency specifications. Employers should regularly audit their interview
questionnaires to ensure that they do not contain questions that are potentially
discriminatory.
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LESSON

3.1
7.3.24. An employer should consistently and objectively assess all applicants interviewed using
as a basis the job description, competency specification and the measuring system. The
same amount of time should be allocated for each candidate and the same or similar
questions should be asked.
7.3.25. The measuring system should be standardized. An employer must allocate weightings to
ensure that there is a balance between matching job requirements, numerical targets and
the needs of the employer.

Making the job offer
7.3.26. Employers should ensure that a realistic job preview is provided to ensure that both the
candidate and employers expectations are congruent. This is to facilitate the retention of
employees from designated groups by effectively managing expectations before the
candidate accepts a position, i.e. it must be clear to the candidate on what their
expectations are, lines of authority and specific responsibilities;
7.3.27.Where a candidate does not accept a job offer, an employer should conduct an "exit" type
interview to establish the reasons for not accepting the offer. This will enable the employer
to identify and remove existing barriers.

Record keeping
7.3.28. An employer should keep copies of all documents relating to each stage of the recruitment
process for a reasonable period of time after the position has been filled. These
documents will be important in the case where an applicant challenges the recruitment
process and selection.
7.3.29. An employer may keep data on its recruitment processes to inform its employment equity
strategy and for monitoring changes in attitudes and actions of managers. This
information could include:
7.3.29.1.the demographic details of candidates who apply, those who are short listed, interviewed
and those who are made offers;
7.3.29.2. the demographic details of candidates in relation to short listing, interviewing and job
offers made in each department to establish which sections within the workplace are
advancing the employment equity profile of the employer. The employer can then focus
attention on those departments that are not successful in advancing the employment
equity objectives; and
7.3.29.3. the persons who were involved in the short listing, interview and job offer process.

Reference checks of job applicants
7.3.30. The purpose of a reference check is to verify information provided by an applicant during
the selection process.
7.3.31. Reference checks should not be conducted in a manner that unfairly discriminates. The
same type of reference checks must be conducted on all short-listed applicants.
7.3.32. An employer should only conduct integrity checks, such as verifying the qualifications of
an applicant, contacting credit references and investigating whether the applicant has a
criminal record, if this is relevant to the requirements of the job.


7.4.1. Implementing Employment Equity - Recruitment and selection must be aligned to the
employer's affirmative action strategy, as reflected in its Employment Equity Plan, which
sets out the detail in relation to the numerical targets for each designated group by
occupational categories and levels.
7.4.2. Disability - The employer should not unfairly discriminate on the ground of disability. In the
context of disability, there are specific recruitment and selection issues that arise. In
particular, an employer is required to make reasonable accommodation for the needs of
applicants with disabilities. Employers should seek guidance from the Code of Good
Practice on the Employment of People with Disabilities and the Technical Assistance
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Guidelines on the Employment of People with Disabilities.
7.4.3. Attraction and Retention - The ability of an employer to attract employees from designated
groups will depend on a combination of factors, which include recruitment and selection
practices, competitive benefits, career opportunities, an affirming environment, reputation
and image of the employer.
7.4.4. Assessments - Where an employer makes use of assessments during the selection
process, they should refer to the relevant section of this Code.
7.4.5. HIV and AIDS Status - An employer should not unfairly discriminate on the ground of HIV
and AIDS. Employers could use the Code of Good Practice on Key Aspects of HIV/AIDS
and Employment for guidance in this area.

10. MEDICAL, PSYCHOLOGICAL AND OTHER SIMILAR ASSESSMENTS*

10.1. SCOPE Appropriate medical, psychological and other similar assessments, if properly
used by employers, could contribute positively toward the recruitment and development of
suitably qualified applicants and employees. Assessments, whether medical,
psychological or other similar assessments, should include rather than exclude individuals
with potential and those suitably qualified.


10.2.1. The Act prohibits medical testing, unless legislation permits or requires the testing; or it is
justifiable in the light of medical facts, employment conditions, social policy, the fair
distribution of employee benefits or the inherent requirements of the job. Psychological
and similar assessments are also prohibited by the Act, unless the assessment being
used has been scientifically shown to be valid and reliable; can be applied fairly to all
employees; and is not biased against any employee or group. Assessments are required
to be free from unfair discrimination based on the prohibited grounds. Tests that directly or
indirectly unfairly discriminate on these grounds are inappropriate and should be avoided.

10.2.2. An assessment is seen to be directly unfairly discriminatory when it excludes employees
from designated groups on the basis of one or more of the prohibited grounds. Indirect
unfair discrimination, however, is the more likely outcome. This occurs when, on average,
the majority of a particular group assessed scores below the minimum requirement
compared to other groups or individuals.

9 Medical, psychological and other similar assessments are also covered in Section 7 of the
Employment Equity Act as well as the Code of Good Practice on Key Aspects of HIV/
AIDS and Employment and in the Code of Good Practice the Employment of People with
Disabilities.

10.2.3. Assessments should be used to identify candidates with potential and persons who are
suitably qualified. These assessments should then be followed-up by relevant intervention
measures like appropriate training and development.


10.3.1. An employer who uses medical, psychological and other similar assessments should
develop a written policy for the workplace, which identifies the purpose, context, methods
and criteria applicable to selecting and conducting assessments.

10.3.2. An employer should ensure that assessments used are valid, reliable and fair10, so that
no group or individual is unfairly disadvantaged as a result of the assessment. Bias in the
application of the assessment should be eliminated. The test should match the job in
question and should measure the minimum level of the competencies required to perform
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LESSON

3.1
the job, which must be based on the inherent requirements or essential functions of the
relevant job. Tests should avoid arbitrary or irrelevant questions. Only assessments that
have been professionally validated as reliable predictors of performance for a particular
job, irrespective of race gender or disability, should be used.

10.3.3. Administrators and users of medical, psychological and other similar assessments should
be qualified and registered with the appropriate recognised professional body of South
Africa. Assessors should be trained to understand, evaluate and interpret the evidence or
outcomes of the assessment objectively against the skills and abilities required for the job
and must be able to justify their decisions. The assessment process should also minimize
the opportunity for assessors to make subjective or arbitrary judgments that could,
deliberately or inadvertently, work to the advantage of one group over another. Assessors
should make sure they assess against the competencies for the job.

10.3.4. Special care should be taken to ensure that the language used is sensitive and accessible
to those who are being assessed.

10.3.5. All employees or applicants for a particular job should be assessed against the same
criteria. The process should make accommodation for diversity and special needs.

10.3.6. An employer should keep assessment records for at least one year.

10.3.7. Employers should ensure that reasonable accommodation is made for employees or
applicants where required, and that unfair discrimination does not occur in the
arrangements for the administering of tests or in using assessment centres.

You may view the rest of the Code on the internet.
110



Study 7.2 Job analysis pages 224-234.
Study the definitions of Job analysis page 224.
Study the definition of Job descriptions page 224.
Study the definition of Job specifications page 224.
Study Figure 7.2 Stages in the job analysis process page 225
Study 7.2.3 Information to be obtained through a job analysis page 226.
Study 7.2.4 Job analysis methods pages 227-229.
Study 7.2.5 Principles of job analysis pages 229-230.
Study 7.2.6 Writing job descriptions page 230.
Study 7.2.7 Job specifications pages 231-233.
Study Exhibit C: Job Description and Specification example page 232-233.
Read 7.2.8 Employment equity Act: Possible implications pages 233-234.
Study Figure 7.3 The workforce planning and programming process page
239.

111
LESSON

3.1


Study 6.2 Job analysis pages 229-238.
Study the definitions of Job analysis page 229.
Study the definition of Job descriptions page 229.
Study the definition of Job specifications page 229.
Study Figure 6.2 Stages in the job analysis process page 230.
Study 6.2.3 Information to be obtained through a job analysis page 231.
Study 6.2.4 Job analysis methods pages 232-234.
Study 6.2.5 Principles of job analysis pages 234-235.
Study 6.2.6 Writing job descriptions page 235.
Study 6.2.7 Job specifications pages 235-237.
Study Exhibit 6.2: Job or role descriptions page 236.
Read 6.2.8 Employment equity Act: Possible implications pages 237-234.
Study Exhibit 6.3: Sample job description summary page 238.
Study Figure 6.3 The workforce planning and programming process page
244.

112


3.2.1. Conduct recruitment in accordance with the plan and in such a way as to have the
potential to elicit the desired response from the target market.
3.2.2. Deal with responses in accordance to planned control procedures.
3.2.3. Conduct initial screening to determine if applicants meet the critical job
specifications and requirements to expedite the departure of unsuitable applicants.
3.2.4. Implement corrective action following the evaluation of the initial recruitment plan,
if the initial screening does not elicit desired responses.
3.2.5. Prepare a list of potential candidates to facilitate selection.
3.2.6. Manage an applicant database in accordance with legislation and organisational
requirements.
3.2.7. Deal with unplanned events in accordance with the circumstances and initiate
contingency plans.


RECRUIT APPLICANTS
Recruitment is the process of attracting applicants who comply with the
requirements of a position to be filled in an organisation.
RECRUITMENT
Attracting suitably qualified applicants
SCREENING
Eliminating unsuitable applicants.
SELECTION
Selecting the most suitable applicant.
APPOINTMENT
Issuing a letter of appointment/contract of
employment.
PLACEMENT
Distributing newly appointed employees
into branches or departments.
INDUCTION
To acquaint new employees with the
organisation, colleagues and tasks
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LESSON

Section 7.3.5 of the Code of Good Practice on the integration of Employment
Equity into Human Resource Policies and Practices states the following:
Job advertisements should place emphasis on suitability for the job, and should
accurately reflect the inherent or essential requirements (i.e. the core functions) of
the job and the competency specifications.

This means that in order for us to list the inherent requirement of the job we need
to draw up a job description preceded by a thorough job analysis.

The Code recommends that as many as possible suitably qualified candidates
from the designated groups should be shortlisted. These candidates should meet
the essential job requirements.

The Employment Equity Act (EEA) identifies four factors that should be considered
when assessing the suitability of the candidate:
relevant experience;
formal education;
prior learning
the capability to acquire, within a reasonable time, the skills necessary to do the
job.

Recruitment is a two-way process in the sense that, just as organisations are
searching for potential applicants, applicants are also searching for suitable
organisations.

The following conditions must be met for this meeting between the organisation
and the applicant to take place:
There must be a common communication medium (the organisation advertises in
the medium read by the employment seeker.
The applicant must be able to find a match between his or her characteristics and
the requirements of the job.
The applicant must be motivated to apply.

Responsibility for recruiting In a small organisation, recruiting is usually
personally conducted by the owner or manager. In larger organisations, the
human resources department is usually responsible for developing sources of
applicants. Regardless of who does the recruiting, it is important for one
department to coordinate the recruiting function in order to develop adequate
sources, avoid duplication and ensure that human resource needs for the overall
organisation are met.

3.2
THE RECRUITMENT PROCESS
Klatt, Murdick and Schuster (1985) stated that the recruitment process
involves identifying and attracting candidates for current and future jobs; it is a
process of developing and maintaining adequate sources for filling human
resource needs. The greater the number and variety of sources of personnel,
the greater the chance of finding the right individual for the job.
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Recruiting may be an ongoing process whereby the organisation attempts to
develop a pool of qualified applicants for future human resource needs even
though specific vacancies do not currently exist. This practice is also necessary to
maintain contacts with recruiting sources.

THE RECRUITMENT POLICY

The recruitment policy should state the objective of the recruitment process and
provides guidelines for carrying out the recruitment programme.

In the formulation of a recruitment policy the following questions may arise:
When and to what extent, will vacancies be filled from within the organisation?
When will we look outside the organisation?
Will family members of existing employees be considered?
Will handicapped/disabled people be employed?
Will affirmative action be taken into account?

GUIDELINES FOR RECRUITMENT

Human resources planning and forecasting should precede any recruitment action.
Comprehensive job analysis are a prerequisite for ensuring that attempts at
recruitment are non-discriminatory and that they take place in accordance with job-
related factors.
Full job specifications (the minimum qualities required of the applicant) must be
created to ensure an accurate match.
Sources and methods of recruitment must be adapted to each organisation.
Both the negative and positive aspects of the job must be made known to the
applicant (realistic job preview).
Recruitment must take place in accordance with the organisational needs
(continuously and not only annually).

FACTORS THAT INFLUENCE RECRUITMENT
There are many factors that limit or affect the recruiting policies of any
organisation. These factors may be internal or external.

EXTERNAL FACTORS ARE TRADE UNION LIMITATIONS, LABOUR MARKET CONDITIONS,
COMMUNITY AND THE PUBLIC POLICY.

Trade unions: Unions play an active role in employment practices of several
industries. Rules with regard to layoffs, transfers, discharges and demotions may
limit the organisations internal recruitment policies. Seniority rules and rights may
specify who will be promoted into a vacant position. Many trade unions seek to
institute an agreement with management that only members of their trade unions
will be employed referred to as closed shop agreements.
Labour market conditions: Changes in the labour markets can very dramatically
affect recruitment policies and practices. The unemployment rate, shortages or
excessive supply in specific skills, the recruiting activities of other organisations
and going wage rates all influence the effectiveness of recruitment programmes.
The number of qualified applicants will depend on labour market conditions. In
South Africa there is currently a scarcity of highly skilled personnel and many are
leaving referred to as the brain drain. The National skills development strategy is
striving to improve the education and training levels in South Africa.
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LESSON

3.2
Public policy/legal requirements: Government legislation and regulations must be
taken into account when a recruitment programme is compiled specifically
affirmative action legislation. The skills development Act as well as the NQF Bill
plays an important role in determining the overall approach to recruiting and even
the sources of recruitment. Equal rights indicate the ability of an organisation to
appoint a person free from any discrimination (sex, race, religion, age,
experience). Equal rights legislation is a reality in the new South Africa.
Affirmative action legislation requires that employees from disadvantaged groups
are employed. The skills development Act ensures the training and development
of people from designated groups. The NQF Bill recognises prior learning in the
form of competencies or abilities that have not been formally recognised in the
form of a certificate, diploma or degree.
Community: There are increasing pressure from communities in which businesses
operate to employ members from that particular community.

INTERNAL FACTORS ARE ASPECTS SUCH AS ORGANISATIONAL INFLUENCES, WHICH
INCLUDE STRATEGY AND RECRUITMENT, AS WELL AS SPECIFIC CRITERIA FOR THE
RECRUITMENT OF CANDIDATES.

Organisational and recruitment policy: The organisational policy with regards to
promotion, which determines whether promotion will take place from the ranks of
existing staff or from outside sources, has a direct influence on recruitment.
Organisational policy with regards to the employment of the disadvantaged, the
handicapped, pensioners and family members of existing employees will also have
an important influence on the recruitment programme. If the recruitment policy
encourages promotion of current employees, the recruitment programme will be
seeking applicants form lower levels.
Image of the organisation: The image of the organisation is based on what it does
and whether it is regarded as a good and advantageous place to work.

A organisation with a favourable public image resulting from a sound product,
positive business practices and an effective marketing and public relations
program, is likely to have an easier time in recruiting qualified candidates. On the
other hand, an organisation that received bad publicity due to poor quality
products, bad business practices or corruption will struggle to find good applicants
in the labour market.
Since about one out of five job applicants obtained employment by asking friends
or relatives about jobs at which they worked, sound human resource practices will
play an important role in the number of job applicants. Therefore some
organisations, enjoying a reputation as a nice place to work for, and have very
limited recruitment programmes since most jobs are filled by word-of-
mouth. (Klatt,Murdick & Schuster, 1985).

Recruitment requirements/criteria: It is important that the organisation should use
effective job analysis, job descriptions and job specifications to lay down realistic
recruitment requirements. If these requirements are abnormally high, they may
The definition of a labour market is as follows: A labour market is a place
where demand and supply factors are expressed in the exchange of labour
between two parties, the one (employee) who offers labour and the other
(employer) who requires and wants labour.
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A
impede the recruitment programme. If the recruitment criteria is too rigorous,
opportunities for employing suitable candidates may be lost. Realistic job
descriptions and job specifications are helpful to stipulate the actual demands of
the job.
Strategic plans: as previously discussed in manpower planning at the beginning of
this chapter, the number and type of vacancies are determined by the strategic
plans of the organisation.
Costs: The size of the organisation will play a very important role in determining
the budget for recruitment.

THERE ARE TWO SOURCES OF RECRUITMENT:
INTERNAL (INSIDE THE ORGANISATION)
EXTERNAL (OUTSIDE THE ORGANISATION)

INTERNAL RECRUITMENT

Internal recruitment suggests that an organisation must rely upon inside sources
for filling a number of its jobs. In any organisation, there are some jobs that
require specialised knowledge which can only be obtained within that particular
organisation. Promoting internally is widely accepted practice and long
established policy in many organisations.
There are three basic methods of filling job vacancies internally: transferring an
employee from a similar job to somewhere else in the company; promoting an
employee from a lower level job and upgrading the employee. The last method is
accomplished by increasing the educational or skills level of the employee.

Sources that can be used:
Personnel records: by investigating personnel records, information can be
obtained about employees currently in jobs that are below their qualifications,
abilities and skills. This process can identify employees who have the right
background to fill certain vacancies.
Skills inventories: analysing skills inventories, which are usually computerised, can
be used to evaluate job requirements against potential candidates and the most
suitable person for a certain job can be identified. Skills inventories include a list
containing all the details of every employees skill and training competencies.
Employee referrals: Employees can be asked to recommend family and friend for
a vacancy.
Job postings: details of vacancies are posted on internal bulletin boards or
intranets. Employees are then invited to apply for these positions.

ADVANTAGES OF INTERNAL RECRUITMENT

Better qualified employees: The knowledge and abilities of an employee who has
been performing satisfactorily over a period of years can be more accurately
evaluated than those of a person who is brought in from the outside. Existing
employees have a better perspective when long-term decisions must be taken.
Lower cost: The cost of transferring or promoting existing personnel (even those
who needs additional training) is lower than the cost of training and orientation for
employees appointed from outside.
Motivating role: The employee who feels that he can get ahead by working harder
is more likely to strive to succeed. The promotion of existing personnel can
increase the loyalty towards the organisation.
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LESSON

3.2
DISADVANTAGES OF INTERNAL RECRUITMENT

There is a danger of inbreeding because there will be fewer opportunities for new
ideas, knowledge and innovations to join the organisation.
If existing employees apply for promotion and do not succeed, this may have a
negative influence on the morale if outsiders are indeed appointed.
It may cost more to train a current employee for a senior post than to recruit
externally.
There may be better qualified people outside the organisation.

EXTERNAL RECRUITMENT

If talents cannot be found within the organisation, the human resource manager
must search outside the organisation, through external recruitment. Some
organisations look for new blood in order to keep the human resource system
from growing stagnant. The following are external sources of recruitment:
executive company search (head-hunting);
walk-ins;
advertisements;
private- or public employment agencies;
tertiary institutions.

Head-hunting also referred to as executive company search:
Headhunting is not prohibited, but should be supplemented with an advertisement
open to all interested parties. The headhunted candidate should compete on an
equal footing with the other interested parties.

The particular sources that can be used by the organisation vary widely,
depending upon the jobs involved, managerial policy, local labour market and
economic conditions. To ensure effective hiring, a large enough number of
applicants are required from among which to select the most suitable recruits.

Employee referrals:
Present employees should hear from vacancies first which will enable them to
communicate information about these vacancies to family and acquaintances.
Walk-in Applicants:
Prospective employees approach an organisation from time to time and enquire
about possible vacancies. Some employees send a completed application form to
the organisation in expectation of future vacancies. This is a very inexpensive
source of recruitment, especially for the organisation who enjoys a favourable
image in the community.
Advertising:
The first step in the recruitment process is to advertise for a suitable candidate.
Refer to 7.3.5 of the Code of Good Practice on the integration of Employment
Equity into Human Resource policies and Practices. The code states that job
advertisements should place the emphasis on the suitability of the candidate for
the job. It further states that that the advertisement should accurately reflect the
inherent essential requirements of the job.

Section 6.1 of the code states that the job description should provide details of the
knowledge, experience, qualifications, skills and attributes needed to perform the
job.
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Advertisements in newspapers, magazines and professional journals are
recognised as the most effective recruiting sources used by most organisations.
The Code also advises that the advertisement should refer to the companys
equity policy or values and indicate the companys position on affirmative action.
The advert may state preference to designated groups but may not exclude non-
designated groups. Refer to section 15 of the EEA.
Advertisements reach the unemployed job seeker as well as those looking for
better job opportunities. Certain publications will be more effective for recruiting
certain types of applicants. For example, trade magazines or national newspapers
such as The Sunday Times are generally used for managerial and professional
personnel. The classified advertisement section of the local newspaper may be
more effective for recruiting production or clerical personnel. The advertisement
should be specific in its content, because it is aimed at a certain target audience
i.e. those who meet the criteria for the job. The aim should be to obtain as much
response as possible from suitable candidates. Advertising mainly read by one
race group may be viewed as discriminatory. The Code suggests that
advertisement should be placed where they are accessible to groups that are
under-represented in the company.

Checklist for advertisements
Advertisements should: YES
provide contact details such as email address, fax or phone numbers;

the location of the available position;

include the logo of the company

state the name and contact details of the contact person

list the inherent requirements and competency specifications of the
job; (job description)

include the knowledge, skills, qualifications, experience and attributes
required to do the job; (job specification)

include the closing date for applications;

include the starting date for the position;

be objective;

not require unnecessary experience;

not contain requirements that may disadvantage certain candidates;

mention equity policy requirement (affirmative action placements)

not exclude non-designated groups

be placed where it is generally accessible, particularly to under-
represented groups and people with disabilities.

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LESSON

3.2
Educational institutions:
The organisation should maintain personal contact with local schools through
company participation in programmes such as Entrepreneurs Day, Career Day or
cooperative science projects. Educational institutions such as colleges and
universities are the main source of higher-level personnel. These sources provide
professional and technical employees. Campus recruiting means much more than
arranging open days on campuses.

A successful recruiting programme should contain three components as follows:
On-campus visit Increase student awareness of the organisation, inform
students about jobs available and promote the organisations image.
Company visit Applicants are invited to visit the organisation to give them an
opportunity to find out about the working conditions there.
Mentoring Answer lingering questions. Make the student feel part of the
corporate family.

Employment agencies: These agencies act as intermediaries between the
employer and prospective employee. The employer notifies the agency about
vacancies. The agency then recruits the applicants and sometimes also
undertakes the selection process. When an appointment is made the fees for this
service are paid to the agency.
Private agencies: These agencies specialise in a particular field. Agencies
advertise, screen, interview and draw up a short list for their clients. The client
makes the final decision based on the recommendations of the agency.
Public agencies: The department of Manpower keeps a database of work
seekers at different levels. Unemployed people can register on this database.

ADVANTAGES OF EXTERNAL RECRUITMENT
New blood usually injects new approaches, skills and energy into the
organisation.
Costs less to recruit externally than to train exciting staff.
Larger pool to recruit from.

DISADVANTAGES OF EXTERNAL RECRUITMENT
Existing employees may find it difficult to take instructions from new staff.
New employees need a period to adjust to the new environment.
Although they have references, their skills and knowledge areas are not really
known to the organisation.

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ALTERNATIVES TO RECRUITMENT
Rather than recruit to fill existing or future needs, management has other
alternatives including:

Subcontracting work
If management is faced with a forecasted increase in demand for the
organisations goods or services, they may simply decide to subcontract the
additional work to another organisation. This is especially appealing if the demand
is viewed as short-term.

Overtime
Overtime is another important option to satisfy human resource needs, because of
the savings in recruitment and selection costs. A limited amount of overtime work
is normally welcomed by most employees. However if overtime continues for a
long period of time or becomes excessive, fatigue may set in and productivity may
decrease.

Temporary Help

Many organisations make use of temporary help agencies to meet their short-
duration human resource needs. Advantages are lower recruitment and selection
cost, less record keeping and lower benefit costs. On the other hand, the "temp
employee may not have the same commitment to the organisation than the
permanent employee.

EVALUATION OF RECRUITMENT PROGRAMMES

Recruitment is an expensive process and each organisation should carefully
consider the cost of various sources and methods of recruitment.

The organisation can calculate the cost of each recruitment method separately
and then compare it with the advantages that such a system gives. Such
advantages can be analysed in terms of a measure, such as acceptance of offers.

It can thus be determined that some methods provide a high percentage of
qualified applicants, for example referrals from existing employees, but that this
method does not provide sufficient applicants to meet the needs of the
organisation.

121
LESSON

3.2
N NOTES OTES: :

122



Study the definition of recruitment page 259.
Read 8.2 Recruitment policy and procedure pages 260-264
Exhibit A: Example of a recruitment policy and procedure Africa limited
pages261-262.
Study 8.2.1 External factors influencing recruitment pages 260-263.
Labour market conditions
Government policy legislation
Trade Unions
Study 8.2.2 Internal factors influencing recruitment page 263-264.

Recruiters must be aware of the factors that influence job choice as this will
enable them to give positive feedback to the potential candidate and guide
the recruiter to make an informed choice regarding the placement.

The three components of job choice:
8.3.1 Occupational choice page 264.
8.3.2 Job search page 264.
8.3.3 Organisational commitment page 264.

Read 8.4 Recruitment Sources pages 265-268.
Study 8.4.1 Internal resources pages 265-266.

Study 8.4.2 External resources pages 267-268.
Recruitment consultants or placement agencies page 268.
Read 8.5 Recruitment methods pages 268-271.
Study 8.5.1 Advertisements pages 268-271.
Read 8.5.2 Special event recruiting page 271.
Read 8.5.3 Vacation work page 271.
Read 8.5.4 Computer database and the Internet page 271.
Read 8.6 The recruitment process page 271-276.
Study Figure 8.1 The recruitment process page 272.
Exhibit C: Example of a telephonic screening form page 275.
Study 8.7 Evaluation of recruitment pages 276-277.
Study 8.8 Strategic recruitment: A note pages 277-278.

123
LESSON

3.2


Study the definition of recruitment pages 257-258.
Read 7.2 Recruitment policy and procedures pages 258-262
Study 7.2.1 External factors influencing recruitment pages 259-261
Study 7.2.2 Internal factors influencing recruitment pages 261-262.
The three components of job choice:
7.3.1 Occupational choice page 262
7.3.2 Job search pages 262-263
7.3.3 Organisational commitment page 263.
Read 7.4 Recruitment Sources pages 263-265.
Study 7.4.1 Internal resources page 264.
Study 7.4.2 External resources page 264-265
Read 7.5 Recruitment methods page 265-270.
Study 7.5.1 Advertisements pages 265-267
Read 7.5.2 Special-event recruiting page 267
Read 7.5.3 Vacation work pages 267-268
Read 7.5.4 Technology-driven recruitment page 268
Read 7.5.5 Outsourcing recruitment work page 270

Read 7.6 The recruitment process pages 270-274.
Study Figure 7.1 The recruitment process page 271.
Exhibit 7.5: Example of a letter of acknowledgement page 274.
Study 7.7 Aspects of quality control in recruitment pages 274-275.
Study 7.8 Finding non-employee workers to get work done: temporary
employment services pages 275-276.

124

N NOTES OTES: :

125
LESSON

3.3


3.3.1. Validate backgrounds and qualifications using appropriate verification methods
according to the plan.
3.3.2. Assess candidates against the requirements of the defined position.
Range:
Assessment is based on evidence gained from any of three of: applications,
curriculum vitae, references, previous performance, test results, assessment
interview schedules, portfolios of evidence, recognition of prior learning and
current competencies.
3.3.3. Interview candidates using best practice techniques appropriate to the defined
position.
3.3.4. Draw up a shortlist to reflect the results of the assessment of candidates. The
shortlist can be justified in terms of the match between candidate profile and job
requirements.
3.3.5. Make selections in accordance with planned strategy and justify in terms of best
match between candidate profile and job and organisation requirements and
meeting legislative requirements.
3.3.6. Provide feedback that is relevant to the enquiry and the job requirements, to both
successful and unsuccessful candidates tactfully according to the planned time
framework and legal requirements.
3.3.7. Document records to facilitate further processing and reflect agreements reached
and successful candidate details accurately. Authorise records and forward to
designated personnel.
3.3.8. Deal with unplanned events in accordance with the circumstances, and initiate
contingency plans.


SELECTION
Screening is the process of eliminating applicants who are unlikely to be
successful in the relevant position.
Selection is the process of choosing the most suitable applicant for the
relevant position from those who have not been eliminated from the screening
process.
126

Responsibilities for selection: Decisions on staffing policy are a primarily a
function of line management, as are selection decisions. It is however, the human
resource staff departments responsibility to improve these decisions through
competent professional assistance and recommendations. In practice, selection
tends to be the shared responsibility of the human resources department and
management. The human resource officer performs most of the preliminary
screening of candidates, while the managers make the final decision to select
within the guidelines jointly determined by the human resource department.

FACTORS THAT INFLUENCE THE SELECTION DECISION

The type of position to be filled For example, technical and professional
applicants will probably undergo more thorough evaluation to verify their
competence than in the case of unskilled labour.
A new organisations approach to staffing is likely to be less structured than that of
a well-established organisation.
Social pressures also play a part in the selection decisions For example,
boycotts by minority groups can force organisations to employ members of these
groups. Another example is the role of trade unions, which can force organisations
to appoint members on the basis of seniority.
The nature of the organisation Selection must be tailored to fit the needs of the
given organisation. Consideration must be given to such things as the level and
complexity of the job; the organisations cost if the selected employee fails on the
job; the length of the required training period.
The number of applicants for a particular job will also affect the selection
decisions. For example, if the organisation has a very effective recruiting
programme and there are a number of very qualified candidates, the selection
process can indeed be very selective.
The nature of the labour market. The labour market from which the organisation
draw its employees to fill vacancies is influenced by labour market conditions that
affect the country as a whole.
The employment equity plan of the organisation.

The selection process may vary from a ten-minute interview to a highly involved
series of evaluations over an extended period of time. In a complete programme
the selection process is based on comprehensive human resource planning. The
steps in the actual selection process usually include six steps and are theoretically
presented in figure 1.

DEFINITION OF SELECTION
The basic objective of human resource selection is to obtain employees who are
most likely to meet the desirable standards of performance. Selection involves
the choice, form a pool of candidates, of the most suitable candidate who,
according to the judgement of the selection panel, best meets the given job
requirements.
127
LESSON

3.3

figure 1: =Symbol represents a person

PRELIMINARY SCREENING
The initial screening mainly serves the purpose of eliminating obvious unsuitable
candidates in order to save the time and cost of actual selection. All applicants
might be given a ten-minute interview to determine whether they have the
minimum qualification, training, interest and experience for the job. The interview
might explain the availability of jobs and the minimum requirements. The
organisation should set specific and minimum standards for rejection that can be
accurately determined in a brief interview (for example, job requires three years
experience in a financial environment). If the requirements of the organisation and
the qualifications and interests of the applicant appear to match in the preliminary
screening, the applicant can go on to the following steps in the selection process
i.e. the completion of the application form.
CANDIDATES

PROCESS
Human Resource Planning
Recruiting
Preliminary Screening/CV and
application blanks
Short listing of candidates to
meet minimum requirement
incl. equity
Psychometric testing
Interviewing
Checking references
Job offer
SELECT
REJECT

Checklist for short listing
A shortlist should be: YES
standardised in terms of the agreed criteria

decided on by a panel

inclusive of suitably qualified candidates from designated groups

made up of candidates with relevant experience

made up of candidates with prior learning

be in line with the companys employment equity plan

Considering candidates that has the capacity to acquire the skills
necessary to do the job.

128

THE SELECTION COMMITTEE
The selection process should be standardised and preferably be conducted by the
same panel that conducted the short listing.
This panel should be made up of the following people:
senior management;
direct manager of the new recruit;
employment equity committee representative;
union representative;
an employee from the relevant department (if required).

METHODS OF SELECTION

1. THE APPLICATION FORM

Even if an applicant submits a Curriculum Vitae (CV), many organisation will insist
that applicants also complete the job application form. The application form
gathers information about the education, experience, and personal characteristics
of the applicant. The application form can be designed for various types of jobs.
One form may be used for hourly employees, another for managerial and
professional employees and still another for sales and clerical personnel. It is
important that the application forms should be designed to meet the requirements
of the organisation in question. The application form should make provision for
specific information that is important to the organisation. For example: if an
engineering company wants to obtain special information about an applicants
previous experience, sufficient space for this must be provided on the application
form, so that the projects in which the applicant was involved, can be indicated.
An example of an application form can be viewed in the following pages.

The application form can consists of various section:
personal details;
education;
experience and remuneration;
salary and conditions of service;
declaration of veracity (details are true)

2. EMPLOYMENT INTERVIEWING

The employment interview remains the most widely used and the most important
tool in the selection process. An effective interview enables the interviewer to
learn more about the job applicants background, interests and values; it also gives
the applicant an opportunity to find out more about the job and the organisation.
The interview is where face-to-face communication takes place and where
impressions are formed of the personality, values and attitude towards life of the
applicant.

Different techniques of conducting interviews have been classified for example, an
employment interview might be structured; semi-structured or unstructured.

Screening interview: A screening interview is a very short interview lasting
approximately 10 minutes. This interview is aimed at finding out if the applicant is
suitably qualified or skilled for the position within the organisation. After the
129
LESSON

3.3
screening interview a short list is drawn up to proceed to the final interview.
Structured interview: The interviewer makes use of a previously compiled list of
questions based upon the job description and specification. Questions is asked to
obtain certain information from the applicant and questions is often asked in a
certain order:
Semi-structured interview: In this case, only the most important questions are
compiled in advance. This leaves room for flexibility in the type of questions asked.
This type of interview allows scope for asking additional questions to gain deeper
insight into certain aspects.
Unstructured interview: In the unstructured interview, the interview has a
general topic to discuss and follow no pre-planned strategy. The interview requires
little preparation and the interviewer can adapt questions during the course of the
interview. The unstructured interview has the danger of deviating so far that the
interview no longer succeeds in collecting facts on which an objective evaluation of
the various candidates can be based.

When weighing up the three types of interview against each other, it becomes
clear that the more structured the interview is, the more reliable the information
obtained will be.

GUIDELINES FOR INTERVIEWING:
Ensure that interviewers are trained for their task.
Conduct the interview in private, at a suitable venue. The facilities must be clean
and comfortable to ensure that the applicant is left with a favourable impression of
the organisation.
Formulate the objective of the interview and the questions to be asked before
interviewing the applicant.
Study the information on the candidates application form as well as the relevant
job description, before the interview.
Put the applicant at ease with a few general remarks about the organisation and
the job.
Encourage the applicant to talk by asking pertinent questions and listening
attentively to the answers.
Leave sufficient time for the interview but dont waste it.
Keep control of the interview. Dont be dominant, but keep the interview headed
toward the objective.
Conclude the interview in a friendly manner.
Record the facts obtained during the interview as soon as possible.
Follow-up work : check the accuracy of the information gained during the interview.
130

APPLICATION FOR EMPLOYMENT
DATE : D D M M C C Y Y

A Applicant's Personal Particulars
1 Surname :
2 Birth name :

3 Preferred name :
4 Citizenship : 5 Home Language :
6 Other languages
7 Residential address
Code :
8 Postal address
Address Code :
9 Phone Numbers
Home : Work :
Mobile : Fax :
10 Earliest Date Available D D M M Y Y Y Y
11 Position applied for
12 Do you have permanent
residence?
YES NO
13 What is your permanent
residence number?

14 Do you have a car? YES NO
15 When required as an inherent requirement of the job, do you give the organisation
permission to conduct a:
Credit check YES NO
Criminal record check YES NO
16 Are you seeking:
Permanent employment YES NO
Temporary employment YES NO
17 Do you give the organisation the right to check your references?
YES NO
18 Employment equity, please complete the following
Race, gender, disability
131
LESSON

3.3
20 Membership of professional bodies

Other
Details :

21 Other training :
Certificate/short courses Year/month Institution

22 Experience :
From To Employer Type of Work

23 Present salary and fringe benefits calculated on a monthly basis :

R + R + R
= R

24 I herewith declare the above information to be correct.*
Signature of applicant Date
*Declaration by applicant: I hereby declare that all the information above is correct
and truthful and reflects my career records and personal details to my knowledge.
This information will be treated as confidential. I hereby authorise any of my former
employers to furnish their records of my services, my reason for leaving their
employment. I hereby release them and their company from liability for any damages
whatsoever for issuing same.
B. EDUCATIONAL AND PROFESSIONAL QUALIFICATIONS
Secondary:
Tertiary:
Subjects:

Highest grade achieved:
Diploma
Years studied Institution
Degree
Years studied Institution
132

C. SALARY AND CONDITIONS OF SERVICE
For office use only.
1 Salary Offered R
2 Scale
Experience
3 First Salary Adjustment 1 March
4 Commencement Date
5 Job Classification
6 Division
7 Office
Special Condition of Employment
9 I undertake to employ
subject to the above conditions

Signed for ABC Pty LTD

10
I acknowledge that I am familiar with the conditions of employment of the company
ABC (PTY) LIMITED and I accept the conditions contained therein.

Initials
Surname

133
LESSON

3.3
Tests are useful for preliminary assessment of competence in certain jobs, but test
results should never be the only criterion on which selection is based. Numerous
tests which were applied in the past to both employees and applicants have been
neither valid nor reliable as they were not good indicator of competence
requirements. Because of the cultural diversity one type of test may not be suitable
and fair to all cultural groups.

3. EMPLOYMENT TESTING

Klatt, Murdick and Schuster (1985) states that employment tests are usually
administered after a preliminary interview has been conducted and the application
form has been examined. Tests have been developed in an effort to find more
objective ways of measuring the qualifications of job applicants, as well as for use
with employees being considered for transfer or promotion. A properly developed
and administered testing program can provide a more objective way of judging job
applications and improve the accuracy of the selection process.

Some of the commonly used tests include: performance or achievement test;
intelligence tests; aptitude tests; interest tests, personality test, skills tests and
physical and motor skills.

Performance or achievement tests have been designed to determine how much
the job-seeker already knows about the job or how well he is able to do the job.
For example: a prospective mechanic may be asked to repair the gearbox of a car
within a minimum time or a prospective typist may be asked to type a page.
Intelligence tests attempt to measure the individuals capacity or over-all ability to
learn. Intelligence tests help to ensure that only applicants who meet the minimum
intelligence requirements for a job will be considered for employment.
Aptitude tests are designed to measure the ability to learn specific jobs. These
tests may be multi-aptitude or specific aptitude. The multi-aptitude tests can
measure a multitude of skills such as clerical speed, verbal ability, abstract
reasoning, mechanical aptitude, numerical ability, space relations, spelling and
sentence construction.

Specific aptitude tests measure specific patterns of abilities necessary to perform
certain jobs, such as mechanical skill for the prospective car mechanic.

Interest tests: Gerber, Nel and Van Dyk (1998) states that interest tests are
designed to determine the direction of interest, particularly of school leavers. A
person may have the intelligence and aptitude (i.e. ability) to master a certain type
of work cognitively, but if the person is not interested in that specific work, the
chances for individual job performance are low. Interest tests have been
developed to determine to what extent the skills required to carrying out a certain
job are present or latent in the candidates personal make-up.
Personality tests attempt to measure different facets of the personality such as
achievement orientation, dominance and sociability. If personality tests are
properly administered and interpreted it can assist in predicting how someone will
handle situational stress or how he will relate to other people.
Skills tests measure intellectual skills including general reading, spelling,
mathematical abilities, specific job skill tests or job knowledge tests (for example
the use of specific word processing programmes).

134

In a developing country, such as South Africa, particularly minimum requirements
with regard to reading and mathematical abilities are very important.

GUIDELINES FOR THE USE OF TESTS:
Do not make tests the sole tool for selecting applicants; it should be used
supplementary to the interview and referrals.
Use the right tests for the job for which you are hiring. The tests must be checked
for validity within the organisation in which they are to be used.
Be sure that a test measures what you want to measure.
First use the tests on current employees, to make sure that the tests are practically
relevant and meaningful.
Make use of the advice of competent consultants in test development or selection.
Have the test administered by trained psychologists or industrial psychologists.
Tests must be carried out in a private, quiet and well-ventilated area with good
lighting.
Test results must be handled strictly confidential.

4. PHYSICAL EXAMINATION

In most organisations, the final step in the selection process is a physical
examination. These physical examinations are valuable in eliminating applicants
whose physical condition does not meet the requirements of the job they are being
considered for. The physical standards for jobs need to be realistic and job-related.
The physical examination usually determines the general state of health. Refer to
the section below on medical testing.

MEDICAL TESTING
Chapter 7, Section 7 of the EEA states the following regarding medical testing:
1) Medical testing of an employee is prohibited, unless--
a) legislation permits or requires the testing; or
b) it is justifiable in the light of medical facts, employment conditions, social policy,
the fair distribution of employee benefits or the inherent requirements of a job.
2) Testing of an employee to determine that employee's HIV status is prohibited
unless such testing is determined to be justifiable by the Labour Court in terms of
section 50(4) of this Act.

PSYCHOLOGICAL TEST AND OTHER ASSESSMENTS
Chapter 2, Section 8 of the EEA states the following regarding psychological
testing:
Psychological testing and other similar assessments of an employee are prohibited
unless the test or assessment being used-
a) has been scientifically shown to be valid and reliable;
b) can be applied fairly to all employees; and
c) is not biased against any employee or group.

5. REFERENCE CHECKS

There is a good deal of variation among organisations with regard to the types of
references requested, type of information requested and the methods of verifying
references. Phoning or interviewing the applicants previous employer or
135
LESSON

3.3
supervisor can give specific information about the applicants previous job
performance. Information that appears on the application form can be checked by
following up references. It is important to note the correctness of data such as
period of employment with previous employers, the salaries earned, level of
responsibility, experience and educational background.

SELECTION STRATEGIES

To make a final choice between the applicants for a specific job, a selection
strategy must be decided on which will take into account several key concepts.

We refer to multiple predictors; placement and cost benefit analysis.

A Multiple Predictors:
When more than one selection technique is used, it must be decided what
combination will be used to make the selection decision.
There are three approaches:
The multiple obstacle approach
The compensating approach
The combined approach.

Multiple obstacle approach each selection step is an obstacle which the
applicant must overcome before proceeding to the following step. Failing to pass
any of these steps, results in the applicant being rejected for the job.
Compensating approach the applicant is not automatically rejected because of
failure at any one of the steps of the selection process. The applicant can make up
for a low score in one of the steps by achieving an above average score in
another.
Combined approach the selection process starts with the multiple obstacle
approach and ends with the compensating approach. For example: the multiple
obstacle approach can be used up to the level where tests are conducted,
because certain tests must be passed for entry into certain jobs. Those who fail
one of these selection steps are automatically eliminated from the process. The
compensating approach can be used with the applicants being allowed to
complete the selection process.

B. Placement:
Selection is the process in which a suitable candidate is selected to fill a specific
job.
Placement, on the other hand is a broader process that concedes an applicant for
more than one position. While the applicant may not qualify for the applied job, the
applicants abilities, interests, skills or other characteristics may qualify him/her for
another job. Large organisations can use this placement procedure profitably to
reduce recruitment and selection costs.

C. Cost benefit analysis:
There are two types of costs involved during the selection process. First, there is
the actual cost of filling the position such as recruitment, testing and interviewing.
Secondly, there are potential costs that may result from a wrong selection
decision. These include the cost of terminating service, the cost of selecting
another employee and low levels of productivity.

136

These costs will vary according to employment standards set in the selection
process. However, at some point the total costs will increase as the employment
standards rise.

The selection techniques and standards should periodically be examined to ensure
that they are still cost effective.

EVALUATION OF THE SELECTION PROCESS

It is difficult to develop a scale on which the success of the selection process can
be measured. Despite this difficulty, every organisation should make systematic
efforts to evaluate the effectiveness of its selection process. Periodic audits,
research and experiments with selection techniques are essential. Such
evaluation techniques should be directed toward answering the question, whether
the selection process is providing the type and quality of employees specified in
human resources planning?

One of the most important scales is the job performance of the recently appointed
employee.

Klatt, Murdick and Schuster (1985) propose several areas in which questions must
be asked to evaluate the selection process in a systematic manner:

Have well defined selection policies been developed?
Why are the current employment standards being used? How are they related to
actual performance on the job?
Are accurate records being kept of the reasons why each candidate has been
rejected?
What percentages of those who apply are hired?
What contribution does each step in the selection process make to the overall
program?
How much does each step in the selection process cost?
What percentage of the newly appointed employees is discussed during the trial
period?
Can the selection process be successfully defended in court?
Is there a correlation between degree of success on the job and the predictions
made at the time of selection?
Is there an exit interview to help measure how well we are matching people and
jobs?
137
LESSON

3.3
N NOTES OTES: :

138



Read Chapter 9 Selecting, appointing and orientating employees pages
280-311.
Study the definition of Selection page 280.
Study 9.2. Predictors and criteria page 281. Study the definition of
predictor.
Exhibit A: Preferred predictors page 282.
Read 9.3 Assessing the quality of predictors (selection instruments
pages 282-284.

Study 9.4. The selection process pages 284-294.
1. Preliminary interview page 284.
2. Application blank page 284. See appendix: Vodacom application blank
pages 303-307.
3. Employment test page 286. Study the different types of test.
4. Employment interview p.288-292
5. Reference checks p.292
6. Physical examination

Read 9.6 Making a selection decision: Fairness, the key requirement
pages 295-298.
Read 9.7 Appointing and socialising new Employees pages 298-300.
Read Practical application part three pages 308-309.

139
LESSON

3.3


Read Chapter 8 Establishing employment relationships and other work
arrangements page 278-311.

Study the definition of Selection page 279.
Study 8.2. Predictors and criteria pages 279-280. Study the definition of
predictor.
Read 8.3 Assessing the quality of predictors pages 280-282.
Study 8.4. Components in a selection process pages 282-294.
1. Preliminary interview page 282.
2. Written applications page 282.
3. Employment test page 285. Study the different types of test.
4. Employment interviews pages 287-292.
5. Assessment centres page 292.
6. Reference checks page 293.
7. Physical examination page 294.
Read 8.6 Making the selection decision: Fairness is the key pages 295-
297.
Read 8.7 Appointing and orientating new Employees pages 298-300.
Read Exhibit 8.2 New employee orientation checklist: example pages 300
-302.



140
Manage the
induction
of new staff
Explain the importance of inducting new staff into the organisation.

Distinguish the induction of new employees from the induction of relocated staff.

Describe how the induction program can be used to elevate existing staff into
mentorship roles.

Allocate parts of the induction process to existing staff.

Ensure that the induction documentation and materials are current, relevant and
complete.

Ensure that new staff are welcomed and given a detailed tour of the relevant
site facilities.

Ensure that work routines are described accurately and in sufficient detail to
enable understanding.

Ensure that internal procedures are described in sufficient detail to enable
understanding.

Encourage new staff to ask questions and seek clarification, where necessary.

Advise and assist new staff constructively in the initial performance of allocated
work activities.
Determine whether or not the new employee has been properly integrated into
the organisation.

Suggest ways to improve the existing induction programme.
5 50
141

4.1.1 Appoint and orientate new employees
4.1.2 Explain three placement strategies
4.1.3 Explain the induction process
4.1.4 Evaluate and induction programme
4.1.5 Draw up an induction checklist


M MANAGE ANAGE THE THE INDUCTION INDUCTION PROCESS PROCESS

Placement is a wider process where an applicant is considered for more
than one position. The placement strategy will thus take the applicants
interests, skills and knowledge into consideration and if not suitable, he/she
will be considered for other posts.
Placement is the process through which individuals are appointed to jobs
within organisations. The placement process also has to do with the
movement of individuals within the organisation in the sense of promotions,
transfers and terminations of service. However, it is primarily a follow-up to
the selection process : selected applicants are now appointed. The
placement process has to do with the internal labour market.
Induction is the process of receiving and welcoming an employee when he
first joins an organisation and giving him/her the basic information he/she
needs to settle down quickly and happily and start work. It provides a means
to communicate the policies of the organisation and allows the new recruits
to ask questions to clear possible misunderstandings.
142

PLACEMENT
Placement is based on the following information: the employees actual
performance since appointment; the individuals own career development
expectations; opportunities for promotion within the organisation and opportunities
to change jobs. Successful placement requires a careful combination of the
employers need to fill a post and the employees career motivation.

THE PLACEMENT STRATEGY

Organisations often use a combination of the following three strategies for the best
solution, namely the internal labour market strategy; the labour pool strategy and
the external labour market strategy.

THE INTERNAL LABOUR MARKET STRATEGY
The individuals upward movement in the organisation is strictly controlled by
policy. Such a policy structures the internal labour market to ensure that
promotions; transfers; dismissals and termination of service take place in an
orderly manner.

Advantages of the internal labour market strategy include:
Promotion opportunities available to employees simply because they are already
employed by the organisation;
Greater loyalty, commitment and career orientation of employees who know that
promotion is possible and that management is looking after their interest.

Disadvantages of the internal labour market strategy include:
The organisations inability to make use of the services of new applicants for jobs
above the entry level.

THE LABOUR POOL STRATEGY
Individuals are appointed to a pool of entry ranks. If the individual is appointed in
such a pool it is accepted that he meets the minimum requirements for
appointment. The person is then temporarily appointed to various jobs until the line
manager has a permanent job in which the employee can be placed.

Advantages of the labour pool strategy include:
A measure of flexibility, as the organisation has the opportunity of building up
temporary employees who can be used in times of high labour turnover or
absenteeism
The cost of poor initial selection decisions can be limited because these temporary
employees can be observed before they are appointed in a job.

CHAPTER 4: INDUCTION
Placement is the process through which individuals are appointed to jobs within
organisations. The placement process also has to do with the movement of
individuals within the organisation in the sense of promotions, transfers and
terminations of service. However, it is primarily a follow-up to the selection
process : selected applicants are now appointed. The placement process has to
do with the internal labour market.
143
LESSON

The biggest disadvantage of this strategy:
Is the high cost of maintaining a pool of employees.

THE EXTERNAL LABOUR MARKET STRATEGY
This strategy aims at appointing employees in any rank or job. Individuals are
recruited externally and no provision is made for promotion within the organisation.
A constant flow of applicants must be available to fill any vacant job. This is a short
-sighted policy. The external labour market strategy can be used by organisations
with a relatively flat organisational structure with few opportunities for upward
mobility within the job structure and is also practical when an industry is stagnating
and organisations experience a declining demand for their products.

INDUCTION

The employee must immediately feel part of the organisation, associate himself
with the goals of the organisation and experience a positive attitude towards the
job.
Three important factors that an induction programme should cover includes:
1. Job factors: These are matters that affect the procedures of how to do the job
correctly, according to the company standard operating procedures.
2. Personal Factors: These relate to matter that affect the employees private life
such as medical aid, leave and pension fund.
3. Group integration factors: The relate to matters that affect the employees formal
and informal working life such as how to address senior managers and colleagues
for example Mr. Jones or everybody on first name basis.

THE OBJECTIVES OF INDUCTION

To smooth the preliminary stages when everything is likely to be strange and
unfamiliar to the new recruit.
To make a new employee more productive: When a new employee joins an
organisation, he/she is unfamiliar with the way in which the work must be done.
An effective induction programme can enable the new employee to reach
production standards more rapidly.
To establish a favourable attitude towards the organisation in the mind of the new
employee, so that he/she is more likely to stay. This will reduce labour turnover
and therefore financial costs.
Helping to create realistic employee expectations. The induction programme must
teach the new employee exactly what the organisation expects of him/her and
what he/she can expect from the organisation. The induction programme can tone
down expectations and enable the new employee to base his/her expectations on
reality.

4.1
Induction is the process of receiving and welcoming an employee when he first
joins an organisation and giving him/her the basic information he/she needs to
settle down quickly and happily and start work. It provides a means to
communicate the policies of the organisation and allows the new recruits to ask
questions to clear possible misunderstandings.
144

THE ROLES IN INDUCTION

The Human Resource Department
The HR Department must ensure accurate job descriptions, information about
employment contract, pension, medical aid schemes etc. Should the organisation
have a Training Department, the Formal induction training scheme will be co-
ordinated by them.

The new employees direct manager
They need a good foundation to start building a sound working relationship.

The Staff representative or Shop Steward
It is the Representatives responsibility to inform the new employee of the union
procedures, if applicable, and joint consultative matters.

Colleagues and other staff
Their duties are to helps the new employee to feel welcome and explain the
informal procedures of the organisation.

THE INDUCTION OR ORIENTATION PROGRAMME HAS THREE PHASES:
1. Pre-arrival stage;
2. Encounter phase;
3. Metamorphosis phase.

1. THE PRE-ARRIVAL PHASE/PRE-EMPLOYMENT PHASE

The new employee should receive an appointment letter or contract of
employment. A brochure or information booklet with the company history plus a
company manual could be enclosed in the letter. The receptionist should be
informed of the arrival date of the new employee. The direct manager should
ensure that the new employees office will be ready for the recruit on the day of
commencement. It includes the preparation, ordering of safety wear and/or
clothing, all computer requirement as well as stationery needs.

THE WELCOME PACK SHOULD INCLUDE:
Brochures, marketing information on the organisation;
Letter of appointment;
Instructions of where to meet on the first day;
A word of welcome letter issued by the CEO.

2. ENCOUNTER PHASE
The second phase in induction is when the employee arrives at the company. The
new recruit should be welcomed by a responsible person (senior manager) who
can introduce the him/her to their colleagues and give a tour of the organisation's
premises. The new recruit needs to be shown the restrooms and basic facilities.
The senior manager should also explain the basic information about the company,
terms and conditions of employment. An employee handbook is useful for this
purpose, but the induction procedures should not rely on the printed word. The
person responsible for new employees should run through the main points to
provide a more personal touch and ensure that queries can be answered.

145
LESSON

After the completion of the initial briefing by the senior manager, the new
employee should be taken to his/her workplace and should be introduced to his/
her direct manager or supervisor for the departmental induction programme. This
can be supplemented with an induction booklet detailing relevant company
information.

THE DEPARTMENTAL INDUCTION PROGRAMME WILL INCLUDE THE FOLLOWING:
The immediate supervisor should put the new employee at his ease introducing
him to colleagues in the department as well as to employees in other departments.
Providing basic information about working arrangements. Rules unique to the
task; safety requirements and accident prevention; reporting for service, rest
periods and lunch times.
Indicating the standards of performance and behaviour expected from a new
employee. Detailed explanation of the task based on job description; explanation
of performance standards.
Inform the new employee about training arrangements and promotion
opportunities.
Giving the employee a viewing of the workplace: Rest rooms; first aid facilities;
reporting for services, approved entrances and exits; stock room and maintenance
department.
The new employee should also meet his/her staff representative.
If the recruit is already skilled and qualified to perform his or her duties, the
employee may be allowed to start work immediately on their own. This will provide
them with an opportunity to get used to the environment and the new equipment.

AN INDUCTION PROGRAMME THAT PROVIDES A GENERAL ORIENTATION SHOULD
INCLUDE THE FOLLOWING:

A brief description of the organisation an historical overview; the organisational
structure; products and services; its goals, norms and standards.
Basic conditions of employment working hours; leave, insurance; medical
benefits; retirement benefits; cafeteria and recreation facilities; absentees
notification of absence; leave of absence.
An overview of policies and procedures - Organisational structures and roles as
well as departmental functions.
Labour relations employee rights and responsibilities; disciplinary procedure;
grievance procedure; employee organisations.
Compensation salaries and salary scales, how payment takes place, bonuses,
overtime pay.
Safety health and safety arrangements; medical- and first-aid facilities.
Facilities restaurant and canteen facilities; parking and rest rooms.
Functions of the department - structures of each department, the relation of
functions in the other departments and sections, and the relation of tasks to each
other within the department.
Functions of the individual - job descriptions should be provided to the new
employee, an explanation of the performance standards and expectations as well
as general work conditions such as how to maintain equipment etc.
Rules and regulations - Rules unique to the tasks, safety and accident prevention,
requests for stationary etc.
Other social and welfare arrangements; telephone calls and correspondence,
travelling and subsistence expenses.
4.1
146

3. METAMORPHOSIS PHASE

Metamorphosis means a marked change in appearance, character, condition, or
function. This phase is reached when the new employee feels comfortable in his/
her workplace and identifies with the organisation.

THE FIRST TWO WEEKS:
The new employee must be given the opportunity to work independently. This is
the best way to settle in and to find acceptance in the work group. The direct
manager should ensure that the new employee is accepted in the working group
as soon as possible and that he/she can integrate in a very natural way with the
other staff. A meeting with the HR manager should be arranged to discuss matters
of importance to the new employee such as loan facilities and bursaries.

THE END OF THE SIX WEEKS PERIOD:
The employee should be well established within the working group and
performance standards are high. Training facilities can be explained at this stage.

INDUCTING EMPLOYEES WITH SPECIAL NEEDS

We should always handle the following inductions with special care in order to
achieve our objectives of induction. The following categories of new employees
might need additional motivation and encouragement:
retrenched workers;
woman returning to work after having their babies;
physically disabled workers with medical problems;
school leavers and graduates;
ex-criminal offenders;
older workers.

Evaluation of the induction programme:
The programme should be regularly evaluated and reviewed to ensure that its
aims are being achieved. This can be done by sending confidential questionnaires
to employees who have completed the induction programme and ask to get their
feedback.

147
LESSON

EXTRACT: CODE OF GOOD PRACTICE ON THE INTEGRATION OF EMPLOYMENT EQUITY
INTO HUMAN RESOURCE POLICIES AND PRACTICES.

INDUCTION

8.1. SCOPE
Induction refers to the process where an employer introduces a new employee. This
includes familiarizing the new employee with the vision, mission, values, job requirements
and the policies and practices, as well as colleagues and the workplace environment.
A carefully planned and implemented induction process will ensure that all new
employees, and in particular designated groups, are effectively integrated into the
workplace from the commencement of their employment. Proper induction can also
function as a retention measure, since an employee who is properly integrated is less
likely to be marginalized and more likely to thrive within the workplace.
8.3.1. The induction process is an opportunity to convey the employer's expectations and values
and to indicate its commitment to equity and diversity. This can occur, not only at the level
of introducing the new employee to policies that prohibit unfair discrimination, but also
through ensuring that existing employees and leadership demonstrate the necessary
supportive behaviour toward all employees.
8.3.2. The induction process can be useful in demonstrating the leadership's commitment to
employment equity by creating an opportunity to send the appropriate message about
zero tolerance for harassment and discrimination, as well as support for affirmative action.
It can also serve to project senior role models from among the designated groups already
employed.
8.3.3. To ensure that the induction process contributes to the effective integration of new
employees from designated groups in the workplace, the employer could ensure that
managers and human resource staff receive training on the induction process. Managers
could also receive training on avoiding stereotypes or assumptions about new employees
based on their personal or physical or racial characteristics, ethnicity or other arbitrary
criteria.
8.3.4. During the induction process, new employees should receive copies of the applicable
policies. Such policies should include a grievance procedure and other dispute resolution
mechanisms. Reasonable accommodation should be made for employees with
disabilities.
8.4.1. Training and development and work assignment - Where gaps have been identified during
the interview, a training and development plan should be prepared with the new employee
and should be introduced during the induction process.
8.4.2. Elimination of barriers - A successful induction will ensure that the employee does not
experience barriers in socialising and networking, which would inevitably impact on
prospects for advancement. The integration of employees from designated groups should
be a conscious effort that extends beyond the induction process.
8.4.3. Elimination of unfair discrimination - The employment environment should be free from
unfair discrimination and harassment and should also promote a common understanding
of what discrimination means and how it will be dealt with.
8.4.4. Grievance & resolution - The grievance procedure should be conducive to raising issues
that arise in the induction process.
8.4.5. Performance Management - All new employees should be provided with information of the
work they are required to perform and the standard to which this work must be produced.
9. PROBATION
9.1. SCOPE Probation involves the trial period for a new employee where the Employer
assesses the employee's ability and skills to function in the position in order to determine
whether to offer the employee a permanent position.
4.1
148

9.2. IMPACT ON EMPLOYMENT EQUITY The probation period can either undermine or
support an employee from a designated group. An employer should provide the necessary
organizational support to ensure that the new employee is successful. An employer should
consider the initial work allocation given to a probationary employee to ensure that the
new employee can cope with the demands of the new workplace.
9.3.1. An employer should ensure that probationary employees from designated groups are not
subjected to unfair discrimination. This can be done by ensuring that managers treat them
fairly and consistently. There should be a written probation policy that clearly sets out the
roles and responsibilities of the employee and company policies and procedures. These
could include the expected performance standards; the frequency and form of
performance reviews; the procedures the probationary employee should comply with
when raising problems or grievances; the nature of support, mentoring and training and
development.
9.3.2. An employer should ensure that managers understand the need for consistent fair
treatment of all probationary employees in order to avoid unfair discrimination and
perceptions.
9.3.3. Where an employee from a designated group requests reasonable accommodation during
the probationary period, the employer should, as much as possible, provide it. Failure to
provide reasonable accommodation may be construed as unfair discrimination.
9.3.4. Managers should, where relevant and appropriate, provide regular supervision and
guidance to probationary employees, including training and counselling, to improve
performance. Managers should keep records of their discussions with probationary
employees, as it may provide useful data about an employee's movement in the
employment equity planning and measurement process. Information used to make
decisions about employees should be reviewed, signed and dated by the employee. If the
employer has a human resources department, this department should be informed of
issues concerning the probationary employees performance.
9.3.5. By conducting an audit of policies and practices, an employer may identify barriers in the
probationary process that impact on designated groups. Strategies to remove these
barriers may then be developed and incorporated into the Employment Equity Plan.
9.3.6. An employer may consider keeping a record of the number of employees from designated
groups who are not appointed at the end of their probationary period and compare this to
probationary employees from non-designated groups. This analysis may indicate the
existence of problems in a particular department or with a particular manager. Corrective
measures can then be undertaken. To the extent possible, exit interviews may be
conducted of probationary employees who are not appointed in order to identify barriers in
the process or perceptions of unfair discrimination. Record keeping can facilitate
measurement of employment equity progress and may enable an employer to identify
problems with retention of designated groups.
9.4.1. Induction - The links mentioned in the induction section are equally applicable to
probation.
9.4.2. Performance management - success during probation is often associated with meeting the
employer's clearly specified and objective performance standards according to which
regular evaluations of the employee 's performance are conducted.
9.4.3. Mentoring and Development - An employer may consider mentoring, coaching and
training interventions to support employees from designated groups during the
probationary period.

149
LESSON

4.1
EXAMPLE: EMPLOYEE INDUCTION CHECKLIST
KEEP COPY ON FILE
Initials and surname:
Job Title:
Department:
Supervisors name:
New recruits cell number:
Recruits supervisor:
Review date:
Post induction interview date:
The listed employment practices were communicated to the employee in the following way:
YESindicates pointed out
NO indicates not pointed out
Explainedindicates explained but not pointed out
Department structure and function
Area Notes: Explained YES NO
Overview of organisation
Organogram
Mission statement
Operational objectives
Overview of department
Department orientation
Specific departmental
procedures

Customer orientation
Function of work unit
Overview of job
Duties and responsibilities
Probation period
Issue an employee induction
manual

Information desk and help
Physical surroundings and resources
Introduction to workspace
Telephone instructions
Location of stationary supplies
Care of equipment
Parking
150

EXAMPLE: EMPLOYEE INDUCTION CHECKLIST CONTINUES...
KEEP COPY ON FILE
Health and safety
Position of fire extinguishers
Smoking rules
Remuneration
Remuneration dates
Remuneration method
Remuneration problems -
person responsible for queries

Working time
Working hours
Meal breaks
Work schedule changes
Punctuality
Attendance
Overtime requirements
Sunday work, night work etc.
Leave
Annual leave
Sick leave
Family responsibility leave
Leave during working hours
Rights and responsibilities
Conduct and dress code
Conducting effective work
relationships

Professional ethics
Personal use of telephones
Personal internet usages
Rules relating to resources
and equipment for personal
use

151
LESSON

4.1
EXAMPLE: EMPLOYEE INDUCTION CHECKLIST CONTINUES...
KEEP COPY ON FILE
Education and training
Bursaries and training policy
Leave for training purposes
Confidentiality
Internet
Email
Documents
Discipline
Disciplinary procedures
Grievance procedures
Appeals procedures
Code of conduct
General employment practices communicated
1.
2.
3.
4.
Acknowledgement
Date of induction:
Signed by new recruit: Date:
Signed by supervisor or senior
manager
Date:
152

N NOTES OTES: :

153
LESSON

REFER TO THE FOLLOWING REFERENCES IN YOUR PRESCRIBED TEXT BOOK:

Study 9.7 Appointing and socialising new employees pages 298-300.
4.1

Study 8.7 Appointing and orientating new employees pages 297-299.
Read EXHIBIT 8.2 New employee orientation checklist: example pages 300-302.


ONLY FOR LEARNERS SWITH THE 4TH EDITION TEXT BOOK


154
Draft an
employment
contract
Analyse the conditions of employment within the organisation.

Determine the minimum legal conditions of employment

Draft an employment contract.
3 30
155

1.1. Establish categories of employment correctly in accordance with the organisational
structure and organisational needs. Range: Categories of employment include
permanent, temporary and contract employees (including standard and specific contracts).
1.2. Scrutinise all organisational sources of employment conditions for relevance.
Organisational sources of employment conditions could include the organisational policy,
collective agreements and managerial and supervisory input. Employment conditions
cover standard or exceptional employment situations.
Categories of employment include:
Permanent, Temporary and Contract employees (including standard and specific
contracts.)
2.1 Identify minimum legal conditions of employment.
2.2 Align each employment condition accurately with the minimum legal requirements.
3.1 Establish the employment conditions of a particular category of employment in accordance
with the relevant sources.
3.2 Reflect all applicable terms and conditions of employment for the relevant category of
employment in the employment contract. Range: Terms and conditions of employment
include starting date and probation period, duration of employment, remuneration, notice
period, leave (sick leave, compassionate leave, maternity/paternity leave), annual
vacation, hours of work and overtime, other benefits and deductions.
3.3 Ensure that the contract of employment suitably covers exceptional terms and conditions
of employment if applicable. Range: Exceptional terms and conditions of employment
could include different housing benefits, transportation, payment in a foreign currency, etc.
3.4 Formulate clear and unambiguous stipulations in the contract.
3.5. Submit the contract of employment for approval to an authorised person.


D DRAFT RAFT AN AN EMPLOYMENT EMPLOYMENT CONTRACT CONTRACT

An employment contract is a legally enforceable agreement between two
parties. One party places his/her personal services at the disposal of, and
under control of, the other party. This is for an indefinite or determined
period, in exchange for a fixed or established wage.
Legal capacity means the power provided under law to a natural person or a
juridical person to enter into binding contracts.
A natural person is a human being, as opposed to a juridical person created
by law.
A juridical person is an entity (such as a company) other than a natural
person (human being) created by law and recognised as a legal entity having
distinct identity, legal personality, and duties and rights.
156

CHAPTER 5: EMPLOYMENT CONTRACTS
Our common law (all rules not found in legislation) regards the contract of
employment as a contract of letting and hiring; the worker lets his or her labour
potential to the employer (the lessee), who in turn pays the employee for the work
completed. The common law views the employment contract as an ordinary
commercial contract, voluntarily entered into by two parties, to wit locatio conductio
operarum (the hiring of services). At common law the individual job applicant
enjoys freedom to contract with whom ever he/she wishes.
A common law contract of employment exists as soon as one party agrees to work
for another, and the employer agrees to remunerate the employee for services
rendered. The employee subjects him-/herself to the supervision and control of the
employer. The government as the third party is the regulator of the contractual
relationship through labour legislation.

Once an employment contract has been agreed to by both parties, it achieves
legal status in terms of common law and the Basic Conditions of Employment Act.
Section 77(3) of the BCEA grants the Labour Court equal jurisdiction with the civil
courts in all matters related to the contract of employment, even where a particular
matter is not covered by the Act.
Figure 1: Hierarchy of sources of labour law rules

Definition of an employment contract:
An employment contract is a legally enforceable agreement between two
parties. One party places his/her personal services at the disposal of, and under
control of, the other party. This is for an indefinite or determined period, in
exchange for a fixed or established wage.
APPLICABLE CONSTITUTIONAL PRINCIPLES
AGREEMENTS OR DETERMINATIONS IN TERMS OF
THE LABOUR RELATIONS ACT
BASIC CONDITIONS OF EMPLOYMENT ACT
CONTRACT OF EMPLOYMENT
COMMON LAW
Extract downloaded from Acts on line Basic Conditions of Employment Act, 1997 (No. 75 of 1997)
http://www.acts.co.za/bcoe97/index.htm
Chapter Ten: Monitoring, Enforcement and Legal proceedings Part B: Legal proceedings
77. Jurisdiction of Labour Court
(3)
The Labour Court has concurrent jurisdiction with the civil courts to hear and determine
any matter concerning a contract of employment, irrespective of whether any basic
condition of employment constitutes a term of that contract.
157
LESSON

In module one, we have learnt that the conditions set in the common law contract
are subordinate to those in the Basic Conditions of Employment Act and/or
collective agreements. See figure 1 on the previous page. We have also learnt that
the BCEA sets minimum standards for the protection of employees in the absence
of other protective measures such as collective agreements or sectoral
determinations. The individual contract of employment thus forms the basis for
employment, but is subject to the stipulations in collective agreements, bargaining
council agreements and the BCEA.

Key elements of an employment contract:
There must be a time agreement;
It must be in accordance and permissible of the law;
The parties must have legal capacity;
The employer must have the power to control; (absent to a large degree in the
case of independent contractors)
The employee must place his/her service at the disposal of the employer;
Remuneration must be paid fixed or readily ascertainable;
There must be consensus between the parties. They must have serious intention
to create shared or mutual rights and duties and be legally bound it.

Labour legislation is only applicable to employment relationships. Read section
83A of the Basic Conditions of Employment Act (BCEA) below, in terms of the
definition of an employee.

5.1
Checklist when determining the exact terms and conditions
of employment.
YES
Always apply the golden rule: The more favourable condition is always
applicable. This means that the individual contract of employment can be
more favourable than any agreement or Act.

Read the employees contract of employment carefully;

Determine if there is a collective agreement in place that covers the
employee. If yes, ensure that the contract of employment is not less
favourable than the collective agreement.

Determine if there is a bargaining council agreement in place covering the
employee. If yes, ensure that the contract of employment is not less
favourable than the bargaining council agreement.

Ensure that the terms and conditions of employment meet the minimum
conditions set out in the Basic Conditions of Employment Act.

If a particular condition is omitted from the employment contract, the
provisions of the bargaining council agreement or BCEA, in that specific
order will apply.

158

83A. Presumption as to who is an employee
1) A person who works for, or renders services to, an other person is presumed, until the
contrary is proved, to be an employee, regardless of the form of the contract, if any one or
more of the following factors is present:
a) The manner in which the person works is subject to the control or direction of another
person;
b) the person's hours of work are subject to the control or direction of another person;
c) in the case of a person who works for an organisation, the person is a part of that
organisation;
d) the person has worked for that other person for an average of at least 40 hours per month
over the last three months;
e) the person is economically dependent on the other person for whom 35 that person works
or renders services;
f) the person is provided with tools of trade or work equipment by the other person; or
g) the person only works for or renders services to one person.
2) Subsection (1) does not apply to any person who earns in excess of the amount
determined by the Minister in terms of section 6(3).
3) If a proposed or existing work arrangement involves persons who earn amounts equal to
or below the amounts determined by the Minister in terms of section 6(3), any of the
contracting parties may approach the CCMA for an advisory award about whether the
persons involved in the arrangement are employees.

It is evident from what we have learnt thus far that in dealing with employment
contracts we need to understand and have extensive knowledge on the Basic
Conditions of Employment Act. Revise module 1, chapter 1, The Basic Conditions
of Employment Act, now before you continue with this lesson.

An independent contractor undertakes to perform a contract of service, as
opposed to full time employee who undertakes contract of work.

1. Fixed term or limited duration contracts:
A limited duration or fix-term contract may be agreed upon for a specific time
period or duration of a project. No notice period is required for a temporary or fix
-term contract. The possibility of renewing the contract may be provided for in the
contract as well as under which conditions for the contract may be renewed.
Employers must be very cautious about the continuous renewal of a contract. If
there is no prospect of a job ending in the near future, the employee should be
provided with a permanent contract. The action of continuous renewal could
indicate that the relationship is indeed a full time agreement rather than a fixed
term or period contract. A specific provision in the contract regarding notice causes
the relationship to expire at its conclusion and does not initiate or result in a
legitimate expectation of a full time relationship and related right. Section 186(1)(b)
of the Labour Relations Act (LRA) states the following regarding non-renewals of
contracts:

Extract downloaded from Acts on line
http://www.acts.co.za/lra/index.htm
LRA no. 66 of 1995 Chapter VIII: Unfair Dismissal and Unfair Labour Practice
186. Meaning of dismissal and unfair labour practice
(1)
"Dismissal" means that-
(b)
an employee reasonably expected the employer to renew a fixed term contract of
employment on the same or similar terms but the employer offered to renew it on less
favourable terms, or did not renew it;
159
LESSON

2. Full-time employment contracts:
These contracts are also referred to as permanent contacts as they stipulate the
date of commencement, but do not give a date on which the contract will
terminate. The employee will remain in employment until he/she resigns, becomes
incapacitated, pass away or retires, unless the employer finds a valid reason to
dismiss the employee. Even if employees are within their probation period they will
still be considered a permanent employee. The only difference is that they will be
assessed more frequently than employees who have already proved their
competence. Read the extract below from the Code of Good Practice on dismissal

5.1
Extract downloaded from Acts on line http://www.acts.co.za/lra/index.htm
LRA, 1995 Schedule 8: Code of Good Practice: Dismissal
8. Probation
(1)
a) An employer may require a newly-hired employee to serve a period of probation
before the appointment of the employee is confirmed.
b) The purpose of probation is to give the employer an opportunity to evaluate the
employee's performance before confirming the appointment.
c) Probation should not be used for purposes not contemplated by this Code to deprive
employees of the status of permanent employment. For example, a practice of
dismissing employees who complete their probation periods and replacing them with
newly-hired employees, is not consistent with the purpose of probation and
constitutes an unfair labour practice.
d) The period of probation should be determined in advance and be of reasonable
duration. The length of the probationary period should be determined with reference
to the nature of the job and the time it takes to determine the employee's suitability for
continued employment.
e) During the probationary period, the employee's performance should be assessed. An
employer should give an employee reasonable evaluation, instruction, training,
guidance or counselling in order to allow the employee to render a satisfactory
service.
f) If the employer determines that the employee's performance is below standard, the
employer should advise the employee of any aspects in which the employer
considers the employee to be failing to meet the required performance standards. If
the employer believes that the employee is incompetent, the employer should advise
the employee of the respects in which the employee is not competent. The employer
may either extend the probationary period or dismiss the employee after complying
with subitems (g) or (h), as the case may be.
g) The period of probation may only be extended for a reason that relates to the
purpose of probation. The period of extension should not be disproportionate to the
legitimate purpose that the employer seeks to achieve.
h) An employer may only decide to dismiss an employee or extend the probationary
period after the employer has invited the employee to make representations and has
considered any representations made. A trade union representative or fellow
employee may make the representations on behalf of the employee.
i) If the employer decides to dismiss the employee or to extend the probationary period,
the employer should advise the employee of his or her rights to refer the matter to a
council having jurisdiction, or to the Commission.
j) Any person making a decision about the fairness of a dismissal of an employee for
poor work performance during or on expiry of the probationary period ought to accept
reasons for dismissal that may be less compelling than would be the case in
dismissals effected after the completion of the probationary period.

160

Individual contracts of employment can vary the basic conditions of employment
laid down by legislation, provided the variation is in accordance with the law and
that the terms are more favourable to the employee than the Basic Conditions of
Employment. Refer to the BCEA sections 4, 49 and 50.

http://www.acts.co.za/lra/index.htm
LRA, 1995 Schedule 8: Code of Good Practice: Dismissal
8. Probation
(2) After probation, an employee should not be dismissed for unsatisfactory performance
unless the employer has-
a) given the employee appropriate evaluation, instruction, training, guidance or
counselling; and
b) after a reasonable period of time for improvement, the employee continues to
perform unsatisfactorily.
(3)
The procedure leading to dismissal should include an investigation to establish the
reasons for the unsatisfactory performance and the employer should consider other
ways, short of dismissal, to remedy the matter.
(4) In the process, the employee should have the right to be heard and to be assisted by a
trade union representative or a fellow employee.
161
LESSON

3. The BCEA Chapter 4, section 29 stipulates the following in regards to written
particulars of employment:

5.1
The BCEA Chapter 4
29. Written particulars of employment:

1) An employer must supply an employee, when the employee commences
employment, with the following particulars in writing-
(a) the full name and address of the employer;
(b) the name and occupation of the employee, or a brief description of the
work for which the employee is employed;
(c) the place of work, and, where the employee is required or permitted to
work at various places, an indication of this;
(d) the date on which the employment began;
(e) the employees ordinary hours of work and days of work;
(f) the employees wage or the rate and method of calculating wages;
(g) the rate of pay for overtime work;
(h) any other cash payments that the employee is entitled to;
(i) any payment in kind that the employee is entitled to and the value of the
payment in kind;
(j) how frequently remuneration will be paid;
(k) any deductions to be made from the employees remuneration;
(l) the leave to which the employee is entitled;
(m) the period of notice required to terminate employment, or if employment
is for a specified period, the date when employment is to terminate;
(n) a description of any council or sectoral determination which covers the
employers business;
(o) any period of employment with a previous employer that counts towards
the employees period of employment;
(p) a list of any other documents that form part of the contract of
employment, indicating a place that is reasonably accessible to the
employee where a copy of each may be obtained.

(2) When any matter listed in subsection (1) changes-
(a) the written particulars must be revised to reflect the change; and
(b) the employee must be supplied with a copy of the document reflecting
the change.
(3) If an employee is not able to understand the written particulars, the
employer must ensure that they are explained to the employee in a
language and in a manner that the employee understands.
(4) Written particulars in terms of this section must be kept by the employer
for a period of three years after the termination of employment.
162

GUIDELINES TO DRAWING UP AN EMPLOYMENT CONTRACT -
Information extracted from www.labour.gov.za

1. Purpose of an employment contract:
The employment contract regulates the relationship between an employee and an
employer. A contract does not have to be in formal language to be valid. The
following should always be included in a contract:
The organisations full name and address;
The name of the employee;
The start date of the contract
The heading should stipulate the type of contract example: Permanent, fixed-term
or part-time employment.
The terms and conditions of employment for the duration of the contract;
The remuneration of the employee;
The benefits;
The working conditions;
The job description and duties of the new employee;
Term and conditions for termination of the contract;
If it is a fix term contract, when it will terminate automatically.

2. Requirements by law:
The employee must be provided with a contract in WRITING. This may be a letter
of appointment (informal) or a formal contract as long as the document contains
the relevant information as stated above and witnesses to both parties should sign
the agreement. Just keep in mind that when you issue an appointment letter
provision should be made for the prospective employee to accept the offer and to
agree to the terms set out in the appointment letter.
The document must be issued on induction (start date);
The employer must keep record of the contract for three years after termination of
service. Chapter 4, Section 29, Written particulars of employment. (Studied in
Module 1, Chapter 1, BCEA)
The contract must be explained to the new employee in a language that he or she
understands. Make use of an interpreter if necessary.
The contract of employment must be updated when:
the law changes;
the remuneration of the employee changes;
the employer and employee agree to amendments of the contract.
An employer may be prosecuted according to Section 93 Schedule 2 -Penalties, of
the BCEA should they not provide an employee with a contract of employment.

3. Application of the Act:
Remember what we have learnt in module one, Chapter 1 - The Act applies to all
employees and employers except:
The National Defence Force;
Intelligence Agency;
Secret service;
Persons rendering a service and who are unpaid volunteers;
Independent contractors
Persons working less than 24 hours per month
and the law applies if employees are temporary or part-time employed even if they:
have a fixed term employment;
work one day a week;
163
LESSON

work only half day.
Tricky question: When does a new person become an employee? The day he/she
signs the contract or the day he/she commences work?
Answer: The day the new applicant signs the contract he/she becomes an
employee. This means that the employer may not change his/her mind before
commencement of work.

4. Minimum requirement of the contract:
The BCEA determines the minimum rights of the employees. Our employment
contract may improve or better the basic working conditions. The BCEA further
stipulates that the employee must be aware of where to access all policies and
procedures of the organisation. We may include a clause in our contract that
incorporates the organisations Code of conduct, policy and procedures.
Examples of such clauses:
The employee will be required to follow the Code of conduct, policies and
procedures prescribed by BMT College, which are specifically incorporated into
this contract of employment. Any breach of such codes, policies and procedures
will be regarded as breach of contract by the employee.
OR
BMT College releases various rules, regulations and policies as the need arises.
The details of these rules, regulations and policies can be accessed from the
Human Resource Department or the QMS file. Whilst the rules, regulations and
policies do not form part of the employment contract, it is your obligation, in terms
of this contract, to ensure that you are familiar with and comply with these
company regulations.

5. Simplify the contract:
Use clear and consistent language;
Number each paragraph for easy reference;
Group clauses together, such as remuneration and benefits;
Do not duplicate information;

6. Probation:
It is advisable to add a clause that allows you to extend the probation period. This
may happen if you are not totally convinced that the new employee will be suitable
for the position when the first probation period comes to an end. Probation period
is normally three months.
Two types of probation periods are available:
6.1 Simple probation period:
An employee completes this period before employment is confirmed.
The clause could state that the employee must satisfy the employers expectations
within the first probation period. The employer will evaluate the progress of the
employee during this period and if at the end of this probation period, the employer
is of the opinion that the employee has still not met the required standards, a
further probation period may be required.
6.2 Fixed term probation contract:
The contract expires automatically on a predetermined date. The employer then
has a choice to enter into a further contract of employment with the employee. It
needs to be made clear to the employee that there are no expectations for further
employment after the fixed term probation contract has expired!
Consider adding the following clause: The employee warrants that he or she has
the necessary skills and expertise to carry out the job for which he or she has been
5.1
164

appointed. The employee hereby acknowledges that he or she has been hired by
the employee based on the strength of such warranty.
7. Place of work:
State in the contract from which premises the employee will have to work from. It is
important that we allow for flexibility such as:
Transfers to a particular town or any where in South-Africa;
Allow for flexibility with regards to transfers from one office to another or one
department to another;
Relocation from one area to another.

8. Duties and job descriptions:
We should always include the duties and responsibilities of the new employee in
our employment contract. If a party fails to abide by these conditions, he/she is in
breach of contract. When a contract is concluded, the parties must agree on the
tasks that the employee will be required to do. The employee is obligated to
perform specific duties or tasks as well as any unspecified tasks related to the
main duties or tasks, provided that it is not unlawful or beyond the area of
expertise of the employee.
8.1 Specific duties:
These are the duties we expect our employees to do. We may add an annexure to
the contract with the specific job description and duties.
8.2 General duties:
General duties are a guideline to the employee on behaviour, ethics and how to
uphold the code of conduct. Things such as acting in good faith, confidentiality and
trust are noted under general duties.

9. Notice period and termination of employment

In terms of the Basic Conditions of Employment Act, any party to an
employment contract must give to the other, written notice of termination as
follows:
One week, if employed for six months or less.
Two weeks, if employed for six months but not more than one year.
Four weeks, if employed for more than one year.
NB. Remember to check bargaining council agreements or sectoral
determination stipulations, regarding termination. This is different to
the BCEA.
A possible clause that could be added to the above:
The grounds on which the employee may be dismissed without notice
include but are not limited to: (list the grounds using general descriptions)

10. Procedure for termination of employment
Breach of the employment contract occurs when either of the parties to the
contract fails to perform his/her duties according to common law or to abide by the
conditions set out in the contract.
Whilst the contract of employment makes provision for termination of
employment, it must be understood that the services of an employee may
not be terminated unless a valid and fair reason exists and fair procedure is
followed. We may not serve notice of termination on an employee while he
or she is absent or on any type of leave. If an employee is dismissed
without a valid reason or without a fair procedure, the employee may
approach the CCMA for assistance. Pro-rata leave and severance pay
165
LESSON

might be payable. The Labour Relations Act, 66 of 1995 sets out the
procedures to be followed at the termination of services in the Code of
Good Practice, in Schedule 8.
Where a business is sold to another party, the contracts of employment with
the employees are not terminated, but are automatically transferred to the
new owner. Refer to section 197A(2) of the LRA, Transfer of contract of
employment in circumstances of insolvency.
10.1 Termination of employment for directors:
Always include the following clause for senior managers who are also
directors: Upon termination of the employees contract of employment, any
directorship that the employee may hold with the company will automatically
terminate.

11. Wage/Remuneration/Payment
There is no prescribed minimum rate of remuneration. Additional payments
(such as for overtime or work on Sundays or Public Holidays) are calculated
from the total remuneration as indicated in the contract. There are two ways
of payments:
11.1 A package (including salary and benefits) called total-cost-to-company
amount.
A package may include medical aid, pension fund contribution etc.
Always explain what is excluded.
When will the salary be paid example: on the 25th day of each month
Explain changes in premiums such as medical aids etc.
11.2 A salary plus benefits.
Added benefits may be car allowances, food and accommodation.
Transport allowances, bonuses, increases
These are not regulated by Basic Conditions of Employment Act and are
therefore open to negotiation between the parties.

12. Hours of work
Normal hours (excluding overtime)
List your requirements within the parameters of Section 9 of the BCEA,
bargaining council or sectoral determination.

13. Overtime
If we want our employees to work overtime, on Sundays or public
holidays we must include this in our contract of employment because
overtime has been agreed upon between the employer and
employee. If we dont include this in our contract, prior agreement
must be reached on each occasion, that overtime work will be
required. Refer to Chapter two, section 10 of the BCEA.
Possible clause to include:
You may be required to work overtime should the need arise.
Overtime will be paid in accordance with the applicable legislation as
amended from time to time.

14. Meal intervals
An employee is entitled to a one-hour break for a meal, after not more than
five hours work. Such intervals may be reduced to 30 minutes, by
agreement between the parties.

5.1
166

15. Sunday work
If the employee works on a Sunday he/she shall be paid double the daily
wage for each hour worked. See Chapter two section 16 of the BCEA.
16. Leave
The contract should make provisions for the following types of leave:
(Chapter 3, BCEA). Explain under each category how much leave will be
granted per type of leave. Also refer to when and how this leave may be
taken.
Annual leave
Sick leave
Maternity
Employees employed for longer than four months and for at least four days
a week are entitled to take three days paid family responsibility leave
during each leave cycle when the employees child is born (paternity leave),
or when the employees child is sick or in the event of the death of the
employees spouse or life partner or parent, adoptive parent, grandparent,
child, adopted child, grandchild or sibling.
17. Deduction from the remuneration
The Basic Conditions of Employment Act prohibits an employer from
deducting any monies from the employees remuneration without his/her
written permission. Whether we choose the total-cost-to-company or the
salary plus benefits, we have to ensure that we agree with our employees
that we may deduct amounts that we are obligated to deduct by law such as
UIF and PAYE or other amounts such as repayment of loans made to our
employees. Employers are however permitted to deduct payments
permitted by a court of law, by arbitration or by a collective agreement.
Possible clause:The employees salary will be paid monthly in arrears
minus any deductions required by law which the employer is obligated to
deduct including UIF and PAYE as well as any other deductions to which
the employee has agreed to.
Other issues
There are certain other issues which are not regulated by the Basic
Conditions of Employment Act such as probationary periods, right of entry
to the employers premises, afternoons off, weekends off and pension
schemes, medical aid schemes, training/school fees, funeral benefits and
savings account, however the aforementioned may be negotiated between
the parties and included in the contract of employment. If an employee is
absent without leave and has exceeded his or her entitlement to leave we
do not have to pay for those days. Therefore this is not a deduction, but
simply no work, no pay!
18. Prohibition of employment
The Basic Conditions of Employment Act prohibits employment of any
person under the age of 15 and it is therefore important for an employer to
verify the age of the employee by requesting a copy of the identity
document or birth certificate.
19. Bonuses:
Annual bonuses are paid on discretion and must not be seen as a right.
Performance bonus: Usually paid is a once off and at the discretion of
management. Ensure that no expectations are created to future bonuses.
Guaranteed bonus: We should clearly describe and explain under which
167
LESSON

conditions and basis these bonuses are paid. What the expectations and
standard of performance from the employees should be to qualify for the
bonus.
20. Confidential information:
We may include a clause which prevents our employees from using
confidential information inappropriately. In specialised fields it is very
important to ensure that employees don't discuss trade secrets with
competitors.
21. Restraint of trade:
A clause preventing employees for a limited period to go and work for our
opposition or start his or her own similar company, might be a good idea.
This will prevent our trade secret from being misused.
22. Retirement:
It is always a good idea to include a retirement age into our employment contract
to avoid difficulties later on.
22. Other conditions of employment
There is no provision, which prevents any other conditions of employment
being included in a contract of employment but any provision which sets
conditions which are less favourable than those set by the Act, would be
invalid.
23. Collective agreements
We have studied bargaining councils and collective agreements extensively
in module one, chapter 4 of our study guides.
Lets revise some of the previously studied material now.

5.1
23. LRA- Legal effect of collective agreements
(1)
(a)
(b)

(c)

(d)
A collective agreement binds
the parties to the collective agreement;
each party to the collective agreement and the members of every other party to
the collective agreement, in so far as the provisions are applicable between
them;
the members of a registered trade union and the employers who are members of
a registered employers' organisation that are party to the collective agreement if
the collective agreement regulates :
i) terms and conditions of employment; or
ii) the conduct of the employers in relation to their employees or the
conduct of the employees in relation to their employers;
employees who are not members of the registered trade union or trade unions
party to the agreement if :
i) the employees are identified in the agreement;
ii) the agreement expressly binds the employees; and
iii) that trade union or those trade unions have as their members the
majority of employees employed by the employer in the workplace.
A collective agreement means a written agreement concerning terms,
conditions of employment or any matter of mutual interest concluded by one or
more registered trade unions and one or more employers and/or registered
organisations.
168

Employees to whom a council or other collective agreement applies are
subject to that stipulations of that agreement and the BCEA will not apply to
them. Section 49(4)(a) of the BCEA prohibits a contract of employment that
is less favourable than a collective agreement. If the terms of the current
contract are more favourable than the collective agreement, it may remain.

BARGAINING COUNCIL AGREEMENTS AND SECTORAL DETERMINATIONS VERSUS BASIC
CONDITIONS OF EMPLOYMENT
We have established in module 1 that the Basic Conditions of Employment
Act allows for bargaining councils and sectoral agreements to override the
BCEA as regards to certain specified employment conditions. This means
that the bargaining council agreement or sectoral agreement can provide
conditions that are less favourable than the BCEA.

BARGAINING COUNCIL AGREEMENTS AND SECTORAL DETERMINATIONS VERSUS THE
CONTRACT OF EMPLOYMENT
No contract may contain conditions that are less favourable than a bargaining
council agreement or sectoral determination. But certain provision in a bargaining
council agreement may be less favourable than those in the BCEA. Bargaining
council agreements may stipulate minimum wage levels, a condition that is not
covered by the BCEA. Conditions established by the council agreement, if more
favourable, are automatically amended to the contracts of employment covered by
the agreement.

As explained above, certain provision in a bargaining council agreement may be
less favourable than those in the BCEA. In these instances the contract of
employment may contain less favourable conditions than those in the BCEA. For
example, if the sick leave is provided for in a council agreement as 20 days, the
employer is entitled to establish these conditions in any new employment contract
even though the BCEA states 30 days sick leave for every 36 month cycle.

Other possible clauses may include:
Conditions of training;
Return of property;
Annual increases;
Medical aid;
Retirement funding;
Protective clauses such as:
Exclusive service;
Trade secrets and confidentiality;
Ownership and or copyright of work produced and developed during
employment is solely owned and copyrighted by the organisation;
Non-solicitation of clients and fellow employees;
Restraint of trade;
Electronic communications provisions to stop e-mail and internet abuse.
Please note: these guidelines are not meant to be a complete summary of the
Basic Conditions of Employment Act and/or legal advice. Should there be any
doubt as to rights and/or obligations in terms of the Act or terms of any clause of
the suggested Contract of Employment, such queries can be directed to the local
office of the Department of Labour, who will gladly assist you.

169
LESSON

5.1
Different types of employment contracts:
1. Permanent employment
2. Part time employment
3. Fix term employment by time
4. Fix term employment by purpose
5. Independent contractor

1. Permanent employment contracts:
The employee will be employed on a permanent (unending) basis on completion of
the probation period. The contract does not stipulate an end date. The notice
periods are stipulated in the contract in relation to the BCEA, bargaining council or
sectoral determination that regulates the industry. The contract may be terminated
with or without notice for misconduct, incapacity or operational requirements of the
company or any reasons recognised by law to be sufficient.

2. Part-time employment contracts:

The employee will be required to work on certain days. The contract will not
stipulate a monthly remuneration as in the case of a permanent employee, but
rather a daily rate. These types of contracts are commonly used for casual workers
at restaurants and cashiers at retail stores.
Review the BCEA summary table in Module 1, Chapter 1 of your study guide. We
have discussed all the stipulation of BCEA that does not apply to casual workers.
Remember casual- and emergency worker are excluded from almost all the
provisions of the BCEA.

3. Fix term contracts:
A fix term contract by time is used for employees who will be required to work for a
fixed period of time, for example to replace a permanent employee who is on
maternity leave or on annual leave. The contract has a start and end date. The
basic salary will be demonstrated in terms of the remuneration for the contract
period. Example: You will receive a gross fee of R____ for the contract period,
which will be paid to you in 4 equal instalments by no later than the 25th of: March
2009, April 2009, May 2009 and June 2009 from which deductions for
PAYE,SITE Employees of Fix term contracts will not be entitled to any discharge
or severance benefits upon termination of the contract. Ensure that the contract
stipulate that there will be no expectation that the contract will be renewed or
prolonged beyond the date of completion. The confidentiality clause is extremely
important in this type of contract especially specify that the clause will still be
effective after termination of the contract.
A fix term contract by purpose will terminate upon notification that the purpose
specified in the contract is no longer necessary. The rest of the terms and
conditions will be the same as the fix term contract by time.

Casual employee means an employee without a fixed contract of employment
who works not more than 24 hours in any week.
170

4. Independent contractor:
Lets first look at what the Labour Relations Act says regarding classification of
employees:
Presumption as to who is employee
200A.
(1) Until the contrary is proved, a person who works for, or renders services to, any
other person is presumed, regardless of the form of the contract, to be an
employee, if any one or more of the following factors are present:
the manner in which the person works is subject to the control or direction of
another person;
the persons hours of work are subject to the control or direction of another person;
in the case of a person who works for an organisation, the person forms part of
that organisation;
the person has worked for that other person for an average of at least 40 hours per
month over the last three months;
the person is economically dependent on the other person for whom he or she
works or renders services;
the person is provided with tools of trade or work equipment by the other person;
or
the person only works for or renders services to one person.
(2) Subsection (1) does not apply to any person who earns in excess of the amount
determined by the Minister in terms of section 6(3) of the Basic Conditions of
Employment Act.
(3) If a proposed or existing work arrangement involves persons who earn amounts
equal to or below the amounts determined by the Minister in terms of section 6(3)
of the Basic Conditions of Employment Act, any of the contracting parties may
approach the Commission for an advisory award on whether the persons involved
in the arrangement are employees.
(4) NEDLAC must prepare and issue a Code of Good Practice that sets out guidelines
for determining whether persons, including those who earn in excess of the
amount determined in subsection (2) are employees.

The above information clearly provides guidelines for us on how to structure our
contract for contractors. We will now determine the minimum standards to be an
independent contractor from now on referred to as ICindependent contractor:
The IC chooses which tools, equipment, staff, raw materials, routine and
technology that he will use.
The IC is an independent third party that does not form part of the employers
enterprise.
Payment to the IC will be determined by a rate in relating to a time frame and
results at a particular time.
The IC recruits and selects own employees and may also subcontract.
The obligation of the IC is only to perform duties or work that is required at a
Locatio conductio operis or the contract of letting and hiring of (some/a
piece of) work is concluded between an employer and an independent
contractor. The independent contractor undertakes to build, manufacture or
alter a corporeal thing within a certain period of time and the employer
undertakes to pay the contractor a reward in return for the work done or
service delivered.
171
LESSON

5.1
certain stage and the IC may choose how and when to perform the duties or tasks.
The IC only has an obligation to produce the required results within the stipulated
timeframe.
The IC is not subject to the control of the employer.
The IC if free to build a client base and may advertise his/her services.
The IC bears the risk for bad workmanship, price hikes, over time etc.
The IC is responsible to train own staff.
The IC determines of work schedule and is only bound by the contract terms and
conditions.
Working hours are determined by the IC.
The IC is not eligible for company benefits.
The IC is responsible for own Taxes and needs to be registered in terms of Labour
statutes and with trades and other professional bodies.
Employer will be in breach of contract if he or she terminates the contract
prematurely. IC will be in breach if he or she fails to deliver products or service.
The contract is terminated upon proper completion.

Other things to keep in mind when drawing up a contract for an independent
contractor:
Name the specific service to be rendered;
Location where the service will be rendered;
Start date and end date (if possible)
How the fee will be calculated. For example if an assessors service will be
required, the assessor will have to be paid per assessment or will this be an
hourly, daily or cost per unit rate.
Who will be responsible for travel expenses, accommodation etc.
How often will the service be required?
Rights and responsibilities the employees and employer.
How will you control the stealing of clients, staff, trade secrets or operating
methodologies?

IMPORTANT ISSUES RELATING TO ALL CONTRACTS:
Both parties must sign, date and witness the contract BEFORE they start working.
Why? We may find it difficult to negotiate complicated clauses such as Restraint of
trade once the employee is already appointed. Always place an original copy of
the contract on the employees file!

Before you attempt the assignment gather as many employment contracts as
possible and identify the strengths and weaknesses of each contract. This will
assist you to develop your own. Should you experience any problems with any of
the chapters in this guide please contact an HR programme facilitator at the
College who is waiting for your call.

Log onto: WWW.Labour.gov.za. Following is an example of an employment
contract extracted from the labour website. The CD with the 4th edition textbook
also contains some valuable information.

172

Example
SERVICE LEVEL AGREEMENT
Agreement for the use of the Services of a Contractor
Entered into
and
between
Business Management Training College (PTY)LTD
Registration Number:
(who shall be referred to hereinafter as BMT College (PTY) Ltd)

and

(Hereinafter referred to as THE CONTRACTOR)
of

Whereas BMT College (PTY) LTD conducts business as a Private provider of FET
occupational directed programmes, having specialised knowledge, skills and opportunities
to perform agreed prescribed services as independent contractors:
and whereas
THE CONTRACTOR is an independent contractor carrying on business as a supplier of
services in the field of . THE CONTRACTOR has
agreed to render the services specified in Annexure A hereto to BMT College (PTY) Ltd in
terms of this Agreement.
Therefore it is agreed -
Definitions:
The headings of the clauses in this Agreement are for the purpose of convenience and
reference only and shall not be used in the interpretation of, nor modify, nor amplify, the
terms of this Agreement nor any clause thereof.
Unless a contrary intention appears:
Words importing any one gender shall include any other gender;
Words importing the singular shall include the plural and vice versa;
Prescribed Services means the services to be rendered by THE CONTRACTOR on
behalf of BMT College (PTY) Ltd in terms of this Agreement read with Annexure A hereto.
Warranty and duration
THE CONTRACTOR warrants that he has the ability, skill and experience properly to
render the Prescribed Services and to perform all related functions.
This Agreement shall commence on the date set out in Annexure A hereto and shall
continue for the period set out therein unless it is terminated prior thereto in accordance
with the Termination clause herein.
Obligations of THE CONTRACTOR
THE CONTRACTOR shall
render the Prescribed Services with due skill and proper care, maintaining the highest
professional standard at all times.
perform such Prescribed Services as are agreed to between himself and BMT College
(PTY) Ltd which agreement shall not be unreasonably withheld.
While on the BMT College (PTY) Ltd premises adhere to such standard health and safety
and security measures as may reasonably be required by the BMT College (PTY) Ltd.
173
LESSON

5.1
While rendering the prescribed services, maintain professional standards of conduct in
relation to the representatives and employees of the BMT College (PTY) Ltd with whom he
has contact.
During the currency of this Agreement, accept only such other assignments as will not
impede his ability or conflict with his obligation to render the Prescribed Services within the
time period specified in Annexure A hereto.
Refrain from any action, which may prejudice or be adverse to the business interests of
BMT College (PTY) LTD.
Submit to the Directors or principals of BMT College (PTY) Ltd or any person
nominated by them such information and reports as may be reasonably required of
him in connection with the rendering of any Prescribed Services in terms hereof and
Annexure A hereto.
On completion of the Prescribed Services and on cancellation of this Agreement for
whatever reason, return to BMT College (PTY) Ltd all reports, manuals, research papers,
letters and/or other documents or information stored electronically or remotely or being by
THE CONTRACTOR or came into his possession during the course of the rendering by
him of the Prescribed Services.
Adhere to specific delivery times to that of BMT College (PTY) Ltd and ensure that its
performance will meet the specifications / requirements of BMT College (PTY) Ltd.
Confidentiality
THE CONTRACTOR shall not during the operation of this Agreement or thereafter use for
his own benefit or for the benefit of any other person or divulge or communicate to any
person except to those officials of BMT College (PTY) Ltd the secrets of BMT College
(PTY) Ltd or any other information which he may receive or obtain in relation to BMT
College (PTY) Ltds affairs or those of its customers or of the working of any process or
invention or marketing technique which is carried on or used by BMT College (PTY)
Ltd .THE CONTRACTOR shall further co-operate with BMT College (PTY) Ltd and any
other persons BMT College (PTY) Ltd designates.
Consideration
THE CONTRACTOR shall be paid the amount calculated in accordance with Annexure A
hereto for the rendering of the Prescribed Services on the following conditions:
BMT College (PTY) Ltd shall pay to THE CONTRACTOR monthly, on or before the last
business day of the same calendar month, the fees set out. THE CONTRACTOR shall be
liable for any taxes or duties (and any interest and penalties in relation to any taxes or
duties) which may become payable in relation to any amounts paid by BMT College
(PTY) LTD to THE CONTRACTOR in terms hereof (including VAT, if applicable) and THE
CONTRACTOR hereby indemnifies BMT College (PTY) LTD and holds it harmless
against such liabilities.
Acknowledgements by the Contractor
THE CONTRACTOR is an independent contractor and nothing in this Agreement should
be construed as constituting an employment relationship between THE CONTRACTOR
and BMT College (PTY) Ltd. THE CONTRACTOR acknowledges that this Agreement is
not subject to any employment law or statute.
That the representatives of THE CONTRACTOR are not the employees of BMT College
(PTY) Ltd and that BMT College (PTY) Ltd shall have no liability in respect of any breach
by THE CONTRACTOR of any of the terms of any of his agreements with his
representatives. THE CONTRACTOR acknowledges that its relationship with its
representatives in no way constitutes a temporary employment service and the provisions
of Section 198 of The Labour Relations Act 66 of 1995 do not apply.
174

Termination
Should either party commit any breach of his obligations in terms hereof and fail to
remedy that breach within 7 (SEVEN) days after receipt of written notice to do so, whether
sent by post, delivered by hand or sent by fax (subject to proof of delivery), the other party
shall be entitled to terminate this Agreement.
Authority to present BMT College (PTY) LTD
Notwithstanding anything to the contrary contained herein, THE CONTRACTOR
acknowledges that he has no authority whatsoever to represent BMT College (PTY) LTD
in any capacity whatsoever.
Indulgence
No relaxation or indulgence granted by BMT College (PTY) LTD to THE CONTRACTOR
shall be deemed to be a waiver of any of BMT College (PTY) LTDs rights in terms
hereof nor shall any relaxation or indulgence be deemed to be a notation of any of the
terms and conditions of this Agreement.
Entire contract
This document, together with Annexure A supersedes all prior agreements between BMT
College (PTY) LTD and THE CONTRACTOR and constitutes the entire agreement
between the parties hereto and no agreement at variance with the terms and conditions of
this Agreement shall be of any force of effect unless in writing and signed by BMT
College (PTY) LTD and THE CONTRACTOR.
Domicile
The parties hereto choose domiciluim citandi et executandi for all notices and processes
to be given and served in pursuance hereof at their respective addresses as detailed in
Annexure A. Any notice of change in such addresses shall be given in writing by the party
concerned and delivered by hand or sent by registered mail or fax to the other party and
upon notification of which the address so notified will serve as the new domicilium citandi
et executandi as aforesaid.
Governing law
This Agreement shall be governed by the laws of the Republic of South Africa and the
declaration of any clause or part of a clause herein as invalid shall not affect the validity of
the remainder hereof.

Signed at _______________ on this _____ day of _______________.
FOR AND ON BEHALF OF THE CONTRACTOR who by signature hereof warrants his
authority to so sign.

WITNESS:
1. 2.

Signed at ______________ on this _____ day of ________________.
FOR AND ON BEHALF OF BMT College (PTY) LTD who by signature hereof warrants
his authority to so sign.

WITNESS:
1. 2.

SIGNATURE

NAME (Type or Print)

TITLE

SIGNATURE

NAME (Type or Print)

TITLE
175
LESSON

5.1
Checklist when issuing an employment contract
YES
Stipulate the time agreement by selecting the appropriate contract e.g. fix
term- term, permanent contract etc.
A limited duration or fix-term contract may be agreed upon for a specific
time period or duration of a project. No notice period is required for a
temporary or fix-term contract.
Full time employment contracts are also referred to as permanent
contacts as they stipulate the date of commencement, but do not give a
date on which the contract will terminate.

Ensure that the contract of employment is permissible by law. Check
compliance to the BCEA, collective agreement etc.

The parties to the agreement must have legal capacity.

The employee must place his/her service at the disposal of the employer.

Remuneration must be paid fixed or readily ascertainable.

Formalise the contract. Remember the contract becomes legally binding the
moment that both parties sign the contract. The signatories to a contract are
held liable for due performance of the contract.

There must be consensus between the parties. They must have serious
intention to create shared or mutual rights and duties and be legally bound
it.

Ensure that the content of the contract is comprehensive and that it clearly
reflect the intentions of both parties.

Refer to all the company policies and procedures and inform the employee
where he/she can access these documents.

Stipulate the regulations of the probation period.

Stipulate the hours and place of work.

Explain how you will deal with benefits such as a provident fund, medical aid
etc. Make sure the clause you use is aligned with your policy on medical aid
and your remuneration and benefits structure.

Explain how the company will manage conflicts of interest and outside work.

Stipulate particulars relating to confidentiality, specifically to confidentiality of
intellectual property

Include guidelines and stipulations as to termination of employment.

Clearly explain the dispute resolution path available to employees.

176

EXAMPLE: LETTER OF APPOINTMENT
TYPED OF A COMPANY LETTER HEAD

10 April 2010

Ms R Radebe
Private Bag X100
Bryanston
2021

Dear Ms Radebe

APPOINTMENT - PUBLIC RELATIONS OFFICER

We have great pleasure in confirming your appointment with Business Management
Training College (Pty) Ltd in the position of Public Relations Officer with effect 1 May 2010
with a salary of R9 500 per month. You will be reporting to the Vice Principal Mr. Jako
Poolman.

Your main duties and responsibilities will include the following:
to develop, co-ordinate and manage the PR department within BMT College;
establish and maintain good relationships with stakeholders;
maintain a steady stream of relevant press releases;
assist with the production of newsletters;
organise public relations events, promotions and educational seminars.

The following terms and conditions apply to your appointment:
The company pays an annual bonus subject to the profitability of the company
during that year.
You will be provided with a contract cell phone for the duration of your employment.
You will be allocated a company car. (subject to a valid drivers licence)
Your working hours will be Monday to Friday 9H00 -16H00.
Your employment is subject to a three months probation period.

Enclosed please find the following documents:
Two copies of our standard conditions of employment. Please acknowledge receipt
by signing and returning a copy to the HR department.
An IRP2 form to be completed and returned.
Company car documents;
The disciplinary procedures, code of conduct, grievance form and appeals form.

We wish to take this opportunity to welcome you to BMT College and wish you a long and
happy association with us.

Kind regards

B A van der Linde
Principal
177
LESSON

5.1


Study 3.4.2 Common Law pages 99-102.
Revise 3.4 The legislative framework impacting on employment
relationships pages 98-99 studied in module one.


Study 3.2.2 Common Law pages 89-91.
Revise 3.2 The HRM conformance challenge: South Africas legislative
framework pages 87-104 studied in module one.
Read 8.8 Selecting and contracting a vendor for providing work and worker-
related services pages 303-304.
See EXHIBIT 8.3 Contract for labour broker: Example pages 305-310.


178

Biesheuvel S, Work Motivation and Compensation, Volume 1 Motivational
Aspects, 1984.

Certo Samuel C, Principles of Modern Management, 1983.

Gerber PD, Nel PS, Van Dyk PS, Human Resources Management, Fourth Edition,
1998.

Hampton David R, Summer Charles E, Ross A. Webber, Organisational Behaviour
and the Practice of Management, Fourth Edition, 1982.

Katz Daniel, Kahn Robert L, The Social Psychology of Organisations, Second
Edition, 1966.

Klatt LA, Murdick RG, Schuster FE, Human Resource Management, 1985.

Myers Michele Tolela, Myers Gail E, Managing by Communication : An
Organisational Approach, 1982.

Robbins Stephen P, Organisational Behaviour, Concepts, Controversies and
Applications, 1986.

Stoner James AF, Management, Second Edition, 1982.

Armstrong Michael, a Handbook of Personnel Management Practice, 1982.

Die Suid-Afrikaan, Special focus : affirmative action in action, May / June, no 44,
1993.

Gerber PD, Nel PS, Van Dyk PS, Human Resources Management, Fourth Edition,
1998.

Gerber PD, Nel PS, Van Dyk PS, Mannekragbestuur, Eerste uitgawe, 1987.

Greenhaus Jeffrey H, Career Management, 1987.
B BIBLIOGRAPHY IBLIOGRAPHY

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