Business Management
Back to Basics
First edition
Willy Engelbrecht and Conrad van Greunen
Chapter 9 Human resource management
 Objectives
• Identify the main phases of human resource management.
• Name the macro-environmental factors affecting human resource
management.
• Describe the steps in human resource planning.
• Explain job analysis.
• Explore the processes of recruitment, selection and orientation.
• Discuss the maintaining phase of human resource management.;
• Outline the elements of an effective compensation and reward system.
• Discuss the purpose, process and methods of training and development of
employees.
• Discuss performance management.
• Outline the legislation affecting human resource management in the South
African context.
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Chapter 9 Human resource management
 Human resource management
Process of managing employees in an organisation
Objective = ensure the organisation meet the strategic
goals
Recruit and retain motivated and capable employees
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Chapter 9 Human resource management
 Macro-environmental factors
Factors that influence HRM:
1) Demographic factors:

Composition of the population (gender, age, race, language)
2) Economic factors:

Economic growth rate, inflation, taxation
3) Political factors:

Political stability in a country
4) Social factors:

Poverty, unemployment, health, education
5) Technological factors:

Advancements that affect how work is done
6) Legislative and compliance factors:

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Labour laws
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Chapter 9 Human resource management
 Human resource management
HR 3 main phases:
Acquisition
Maintaining
Development
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Chapter 9 Human resource management
HR 3 main phases:
Phases
Description
Acquisition
Variety of activities to attract outside people
Planning,
Job analysis
Recruitment
Selection
Orientation
Maintaining
Aspect to encourage employees to remain at the organisation
Relationships
Compensation
Benefits
Development
Improve and expand
Abilities
Attitudes
Skills
Knowledge
Capabilities
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Chapter 9 Human resource management
 Acquisition phase
1) Human resource planning
Review strategic
organisational
objectives and plan
Develop a strategic
HR plan
Set HR objectives
Compile the skills
profile of
employees
Conduct HR
demand and supply
forecasting
Develop
employment equity
plans
Implement the HR
action plan
Monitor and
evaluate the
implementation of
the HR action plans
Develop an HR
action plan
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Chapter 9 Human resource management
 Acquisition phase
2) Job analysis
To create a job description and job specification, types of information is
gathered through the process of job analysis:
Work activities
Human behaviours
Machines, tools, equipment
and work aids
Performance standards
Job context
Human requirements
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Chapter 9 Human resource management
 Acquisition phase
3) Recruitment
a) Recruitment process:
Identify need to
recruit
Review and update
job description and
profile
Refer to the
recruitment policy
Consider factors that
may influence the
recruitment process
Consider the sources
of recruitment
Choose the
appropriate
recruitment method
Develop a
recruitment
advertisement
Advertise in the
most appropriate
medium
Provide application
forms or request CVs
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Chapter 9 Human resource management
 Acquisition phase
4) Selection
Initial
screening
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Application
form
Employment
interviews
Employment
tests
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Reference
checks
Medical
checks
Selection
decision
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Chapter 9 Human resource management
 Acquisition phase
5) Orientation
 Integrate the new employee into the organisation by:
a)
b)
c)
d)
e)
f)
g)
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Introduce the person to the organisation
Its procedures
Environment
Work situation
Co-workers
Subordinates
Superiors
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Chapter 9 Human resource management
 Maintaining phase
a) Employee wellness programmes
b) Compensation and reward
 Compensation criteria:
1)
2)
3)
4)
5)
6)
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Compensation is adequate
Equitable
Balanced
Cost-effective
Performance-related
Acceptable to the employee
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Chapter 9 Human resource management
 Development phase
1) Process and implementation of training and
development
Identify
training needs
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Design and
deliver training
programmes
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Evaluate
training
programmes
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Chapter 9 Human resource management
 Development phase
1) Process and implementation of training and
development
 Techniques and methods:
a)
On the job training
• Coaching
• Job instruction technique
• Job rotation
b) Off the job training
• Case studies
• Role-playing
• Face to face training
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Chapter 9 Human resource management
 Development phase
2) Performance management
 One technique to appraise the performance of an employee is the
process of management by objectives (MBO)
a) Defining and setting of clear objectives
b) Active engagement, collaboration, and participation of both the
employee and their superior in the setting of these objectives
and reaching an agreement
c) Regular monitoring, assessment, and review of the
performance against the objectives set
d) Framing an effective reward system to support the process of
performance management
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Chapter 9 Human resource management
 Legislation affecting Human Resource Management in SA
a) The Labour Relations Act (No. 66 of 1995)
b) The Basic Conditions of Employment Act (No. 75 of 1997)
c) The Employment Equity Act (No. 55 of 1998)
d) The Broad-Based Black Economic Empowerment Act (No. 53 of 2003)
e) The Compensation for Occupational Injury and Diseases (No. 130 of
1993)
f) The Occupational Health and Safety Act (No. 85 of 1993)
g) The Unemployment Insurance Act (No. 63 of 2001)
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