Business Administration Assignment, Essays (university) of Business Administration

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ASSIGNMENT 2 :

BUSINESS ADMINISTRATION

2A

Ilze Adams student number 138768

CONTENTS:

• Question 1 ………………..…………………………………………………… Page 2-
• Question 2 …………………………………………………………………… Page 6-
• Question 3 …………………………………………………………………… Page 8-
• Question 4 ………………………………………………………………………Page 10-
• Question 5 ………………………………………………………………………Page 13-
• References …………………………………………………………………… Page

placed in newspapers, magazines, bulletin boards, radio, television and electronically via email newsletters, online recruiting sites and company websites. Some organisations make use of recruitment consultants who perform the tasks of the HR person and shortlists the candidates most suitable for the position. Existing employees may be asked to refer friends or acquaintances. Organisations sometimes approach individuals directly if known by management and this is known as head-hunting. Another strategy is graduate recruitment, where organisations visit learning institutions offering internships and job opportunities to graduates. The company I work for uses online sites such Biz Community to advertise vacancies. These websites attract the types of applicants suitable to the industry. Vacancies are also advertised on the company website (a practice used by most educational institutions). On occasion the company approaches existing employees for referrals usually for support staff positions. Selection is the process of choosing the most suitable candidate from the applications received in order to fill the position.

Preliminary screening can be done using the information on the application form. Here the candidates who do not meet the criteria of the job specification can be eliminated. A preliminary interview is held with suitable candidates giving the interviewer the chance to meet with them face to face and form an overview of each candidate. The applicant can also ask any questions relating to the organisation and the role.

Intensive assessments are sometimes required to determine the skills, personality and ability of the applicant. These are done in the form of psychological testing and diagnostic interviews. Psychological tests are usually a set of questions to be answered in writing by the applicant. Medical checks may be required in some industries if there are physical requirements for a job. This would be a requirement for a Police Officer who needs to be physically fit to perform duties such as chasing and apprehending criminals. Before a final selection is made the HR Manager performs reference checks on the final shortlisted candidates to ensure that the information provided is accurate. It is usually in the form of a telephone call to the listed references supplied to verify certain details about the candidate. Training and development is the process of increasing the value of current employees to the organisation.

Training refers to short-term methods of increasing an employee’s knowledge, skills or behaviour while development is more long-term in preparation for future jobs. For example, when a new system in the form of a software package is introduced at work, training will be provided to employees to teach them how to use the new system. Development would be sending an employee with existing basic Excel skills on an advanced course to perform more complex tasks using Excel in the future. Compensation or remuneration is the financial rewards and non-financial benefits received by the employee for work completed and job performance. When deciding on compensation packages, factors such as the current labour market, cost of living and rewards in the form of salary increases or bonuses must be considered. Direct compensation in the form of a monthly salary or daily/weekly wage is what employees are entitled to for work completed as agreed upon in the employment contract. Indirect compensation refers to the additional benefits provided by the employer such as leave, insurance (medical aid, pension, etc.), housing allowance and car allowance. My current compensation package is an annual salary increase based on the Consumer Price Index and fringe benefits which include medical aid (hospital plan covered by company) and a pension plan in the form of a retirement annuity. They have recently introduced a new leave benefit policy whereby staff are entitled to one additional leave day for every five years of service, over and above the 15 annual leave days. “Performance Management is a process by which managers and employees work together to plan, monitor and review an employee’s work objectives and overall contribution to the organisation.”(hrcouncil.ca/hr-toolkit/keeping-people-performance- management.cfm) There are three stages to performance management.

1. The performance contract – The agreement between employee and employer regarding performance targets.
2. The performance appraisal process – The evaluation and documenting of an employee’s performance in comparison to the performance contract.
3. Performance feedback – specific and relevant feedback to the employee regarding their performance which should include areas of success and areas that need improvement. My colleague recently laid a grievance because she was not awarded a performance bonus. She works in the sales department and was told that she had not met her

Question 2 The Campus Principal at the Private College I’m employed at has to perform HR activities as a line manager in order to effectively manage the team, those of us who report directly to him. He recently had to hire new lecturers to fill various vacancies at the campus.

Placing the right person in the right job When considering which lecturers to employ, he had to consider the applicants’ qualifications, experience and availability in line with company policy and requirements from the Department of Education. He placed the lecturers in positions suited to their area of expertise into the various subjects they would be responsible for. Orientating new employees within their departments With the help of Senior Lecturers, the Campus Principal provided the new lecturers with orientation sessions to familiarize them with the campus, staff, facilities, the various departments, lecturing procedures such as the layout of sessions, marking procedures and reporting structures. The orientation included a Health and Safety brief by the campus Occupational Health and Safety Officer. Training employees on jobs that are new to them The lecturers received training on the Learner Management System software that the college uses to record marks and attendance. This software was specifically designed for the college and all new staff are given step by step demonstrations of how to use the system. Providing performance feedback to employees and assisting them in improving their performance All new staff are placed on a three month probation period where they are assessed and if their performance is satisfactory, they are employed permanently. The Senior Lecturers mentored the new lecturers and had regular meetings with them to assist and guide them where necessary. This information was provided to the Campus Principal who met with each lecturer towards the end of their probation period to discuss their performance giving them feedback about their strengths and weaknesses and how to improve on them. Gaining employee cooperation and developing productive workplace relationships The Campus Principal has an open door policy. All staff are encouraged to approach

him to discuss any concerns or difficulties being experienced at work including personal issues that may affect productivity. This makes employees feel that they are being heard, their concerns being addressed and their needs are being met. The Campus Principal always discusses changes that are going to be implemented and asks for input from staff as to how these changes should be made which makes employees feel included in decision making. It is then easier to accept the changes when they are implemented.

Interpreting the company’s policies and procedures The college has an Assessment policy and procedure which lecturers must adhere to. The Campus Principal ensures that lecturers have access to this policy and as part of induction goes through the policy with the lecturers to ensure they understand it and explains how to apply it when marking.

Controlling the cost of labour Line managers usually have to work within a budget. The budget specifies an amount for each aspect of the business. Our college campus budget includes Academics, Facilities, Events, Salaries, Stationery, Cleaning, Staff and Student Refreshments, Campus Improvements and Equipment. The Campus Principal has to monitor all aspects of the budget to ensure that the campus does not overspend and this includes staff salaries. Developing employee abilities A good line manager will recognize the potential of his staff and provide training and development where needed. Last year the Campus Principal saw the potential of one of the lecturers to become a Senior Lecturer and mentored her for the position. They had regular feedback sessions, he provided coaching and advice when needed until she felt confident enough to fulfill the role and take on the responsibility of the position.

Creating and maintaining positive morale amongst employees with the department There are many ways to create positive morale amongst employees and do not have include financial compensation. In a discussion with some of my team members recently we mentioned a few things that could boost employee morale. One of them was a token of appreciation from the company which could be as simple as a chocolate with a thank you message attached. Another suggestion was giving each team member an afternoon off once a month, to be taken in turns of course.

that employee concerns needed to be addressed which led to the formation of personnel management. Phase 3: Apartheid and Growth of Personnel Management In 1948 the National Party came into power and introduced the policy of apartheid. The policy established separate rules for different races. Labour laws for black workers were created separately accordingly but by the 1970’s the intense strike actions led to major changes regarding employee rights and ultimately resulted in industrial democracy. In 1982, the South African Board for People Practices (SABPP) was formed. Phase 4: Political Transformation and Transformation of Personnel Management (PM) to Human Resource Management (HRM) The major changes in South Africa’s politics in the 1990’s led to a shift from personnel management to human resource management. Attention was given to important concerns including affirmative action, discrimination, labour relations, social responsibility and training and development. Phase 5: Post-Apartheid and Era of Maturity and Specialisation By 1994 South Africa was a democracy and government implemented legislation to address areas in human resources that required attention. Skills Development legislation was circulated to increase employee skills levels. In 1995 the Labour Relations Act was established by organized labour, organized business and the state to ensure that the interests of all parties involved are protected. The Basic Conditions of Employment Act was introduced in 1997 covering a large number of issues relating to fair labour practices. The Employment Equity Act passed in 1998 aimed to eradicate discrimination and promote equity in the workplace. The Occupational Health and Safety Act of 1993 was created to address the health and safety needs of employees at work. (Du Toit, 2012, 329)

From the information above it can be seen how much Human Resource Management has progressed. Stakeholders including businesses and governments have come to acknowledge the value and importance of people in the workplace. Legislation has been put in place, Human Resource Management recognised as an important part of business and the evolution of the country’s governance was key in affecting these changes.

Question 4 Strategic Human Resource Management (SHRM) is important in the overall strategic management process as it involves initiatives that need to be driven and implemented by people, that is management and employees. Strategies usually forecast company growth and this involves training, recruitment, succession planning and compensation which are all functions of Human Resource Management (HRM). SHRM is vital at all stages of strategic management including strategy formulation, strategy implementation and strategy evaluation.

Strategy Formulation Strategic Human Resource Management involves formulating and creating the organisation’s mission and objectives, analysing the internal and external environment and then choosing the best strategy to reach the organisation’s goals.

When formulating a strategy HRM assists with defining the company’s overall mission and goals. Every company has a mission statement which expresses the company’s vision. For example, Google’s mission statement is: "To organize the world’s information and make it universally accessible and useful." (Farfan, 2018). The mission statement tells the public what the company’s main purpose is and should include the core values of the company and who the stakeholders are.

It is important to do an analysis of the strengths and weaknesses that exist within and organization as well as the opportunities and threats outside the organization (SWOT analysis). This establishes the organisation’s strategic position. HRM must ensure that the organisation has the appropriate skills human resources to compete in the market.

A SWOT analysis done by Vodacom in December 2017 listed one of their opportunities as new products and services. (swotanalysis24.com, 2017) HRM would need to ensure that they have the expertise available to develop these new products and services and if not, they would need to send their staff for specialised skills training or recruit an expert externally.

According to an article (comparehris.com, 2018.) there are four essential jobs that must be undertaken by HR in order to effectively implement strategy.

1. Helping employees to understand the strategy. Employees should know why the strategy was chosen and how it will be effective when implemented so that they know what their part is.
2. Augmenting employee commitment to the strategy. Employees need to buy in to the strategy in order to fully commit to it as strategy comes with challenges and changes. The company objectives must be clear.
3. Streamlining local effort with the strategy. New strategy means that outcomes expected will be better than the previous and in order to achieve better results changes must be made.
4. Inducing cross-system cooperation. For successful implementation different departments need to communicate and collaborate as this sharing of information and knowledge can increase success. (comparehris.com, 2018.)

The aspects above all relate to the people working in the organization but there are many other factors that need to be considered when implementing new strategies. HR strategies are dependent on the outcomes of other departments. For example, if the sales department do not meet their target and there is not sufficient growth of student numbers the HR target of employing more lecturing staff cannot be met as there will not be a need for more lecturers, not to mention funds available. Funding is a vital part of strategy as new strategies often require changes including resources or facilities and equipment that need to be purchased and this can only be done if the company has sufficient funds.

Strategy Evaluation

The HRM strategy is continuously changing as continuous evaluation identifies where the problems are and adjustments are made accordingly. Research and metrics are used as evaluation methods. Collecting information in the form of applied research can help to find solutions to specific problems. HR managers should stay abreast of current publications to ensure they are effectively managing staff, productivity and job satisfaction. Surveys, interviews and questionnaires are also forms of research that can provide valuable

feedback on areas of strengths and weaknesses. HR Metrics are evaluative actions which determine the impact and cost of HR initiatives.

Cost-benefit analysis is used to ascertain the cost implications of HR activities. It is beneficial in determining required HR funding. (Warnich, 2015)

It is clear to see how important SHRM is in the strategic management process as it connects the business objectives with the practical aspects of the human capital requirements of the business.

Question 5 In a press release by Deloitte and Touche in June 2014, there are several challenges faced by South African Human Resource Management (HRM) which are common amongst organisations globally.

Leadership is one of the challenges, specifically the different approach to leadership in today’s fast-paced modern world. There is a need for innovative younger leaders who are technologically savvy and the development of senior leaders who need to keep up with the changing business environment. Constantly changing organization objectives lead to the need for refreshed leadership strategies.

Consideration must be given to diversity and inclusive initiatives to ensure optimum performance is obtained. Performance management must be relevant as outdated styles defied. Modern thinking and approaches to employment as well as factors such as social media makes recruitment challenging. Organisations must use innovative thinking and utilize up to date platforms to recruit new talent. (www2.deloitte.com, 2014)

According to G Maritz, Globalisation impacts the South African HRM because of South Africa’s need to try and maintain international standards in the midst of local issues. Many international companies have branches in other countries giving the locals employment opportunities. Locals are also given opportunities to work abroad

come with it. In the current economy it is very difficult for HRM to manage the challenges of globalization and technology and although necessary, the increase of VAT and fuel takes its toll on citizens and may lead to an even bigger increase in immigration.

References: Comparehris.com. (2018). Human Resources Strategy Implementation. [online] Available at: https://www.comparehris.com/human-resources-strategy- implementation/ [Accessed 9 Apr. 2018].

Du Toit, G. (2012). Introduction to business management. Cape Town: Oxford University Press.

Gerber, P. (1989). Human resources management. Johannesburg: Southern.

HUMAN RESOURCE MANAGEMENT AS A PROFESSION IN SOUTH AFRICA: PRACTITIONERS’ PERSPECTIVES. (2003). SA Journal of Human Resource Management , 1, pp.1-12.

Managementstudyguide.com. (n.d.). Job Design - Meaning, Steps and its Benefits. [online] Available at: https://www.managementstudyguide.com/job-design.htm [Accessed 2 Apr. 2018].

Maritz, G. (2002). The most critical issues facing managers in South Africa today. Acta Commercii, 2(1), pp. 4-5.

Swanepoel, B., Erasmus, B., Schenk, H. and Tshilongamulenzhe, M. (2014). South African human resource management. Lansdown, Cape Town: Juta.

Swotanalysis24.com. (2018). VODACOM SOUTH AFRICA SWOT Analysis - Strengths, Weaknesses, Opportunities, Threats of VODACOM SOUTH AFRICA. [online] Available at: https://www.swotanalysis24.com/swot-v/116980-swot-analysis- vodacom-south-africa.html [Accessed 6 Apr. 2018].

The Balance. (2018). Google Business Profile and Mission Statement. [online] Available at: https://www.thebalance.com/google-business-profile- [Accessed 6 Apr. 2018].

Warnich, S., Carrell, M.,Elbert, N., Hatfield, R. (2015). Human Resource Managemnt in South African, 5th^ Edition. Hampshire, United Kingdom: Cengage Learning.

Www2.deloitte.com. (2018). [online] Available at: https://www2.deloitte.com/content/dam/Deloitte/za/Documents/human- capital/ZA_HumanCapitalTrendsPressRelease_18062014.pdf [Accessed 6 Apr. 2018].